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                                                                    EXHIBIT 10.1

                                  GLOBALSANTAFE
                     SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

                                    ARTICLE I

                                     PURPOSE

         1.1 Amendment and Restatement: The GlobalSantaFe Supplemental Executive
Retirement Plan (the "Plan") constitutes an amendment and restatement in its
entirety of the GlobalSantaFe Executive Supplemental Retirement Plan of 1990,
formerly known as the Global Marine Executive Supplemental Retirement Plan of
1990 (the "Prior Plan"), and merger with the GlobalSantaFe Corporation
Supplemental Executive Retirement Plan, formerly known as Santa Fe International
Corporation Supplemental Executive Retirement Plan (the "Legacy Santa Fe Plan").
Effective as of July 1, 2002, this Plan supercedes the Prior Plan and the Legacy
Santa Fe Plan, and the rights of all Participants who were active participants
in the Prior Plan or the Legacy Santa Fe Plan immediately prior to the Effective
Date shall be governed by the terms of this Plan. Pursuant to this amendment and
restatement of the Prior Plan and merger with the Legacy Santa Fe Plan,
GlobalSantaFe Corporate Services Inc. ("GSFCSI") does hereby assume sponsorship
of and the obligation to pay benefits under the Plan; provided, however, that
GlobalSantaFe Corporation (the "Company") does hereby guarantee all benefits
under the Plan.

         1.2 Purpose of the Plan: The primary purpose of the Plan is to provide
deferred compensation for a select group of management and highly compensated
employees. The Plan is expected to attract, retain and motivate executives in
key positions within top management, and to provide a similar incentive for
employees of the Employers who have risen to eligible positions for inclusion in
the Plan so that such executive talent is not lost to competition.

                  The Plan is intended to be unfunded for federal income tax
purposes and for purposes of Title I of the Employee Retirement Income Security
Act of 1974, as amended. Participants herein shall have the status of unsecured
creditors of GSFCSI and the Company. GSFCSI may elect to establish a "Rabbi
Trust" for purposes of protecting the benefit payments.

                                   ARTICLE II

                                   DEFINITIONS

         2.1 For purposes of the Plan, the terms listed below shall be defined
as follows:

                  Applicable Rate means, at the date of determination, the
lesser of the average monthly Pension Benefit Guaranty Corporation immediate and
deferred interest rate for the preceding calendar quarter or 5%; provided,
however, that, in the event the Pension Benefit Guaranty Corporation ceases to
publish a monthly immediate and

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deferred interest rate, the Committee will apply, in substitution, an interest
rate index or formula that is generally accepted to result in a comparable rate.

                  Basic Earnings means the amount of regular annual basic
compensation, converted to its monthly equivalent, paid to a Participant by an
Employer, including salary continuation payments made pursuant to a severance
plan, program, agreement or policy maintained by the Company, GSFCSI or any
affiliate by which the Participant was employed. In the event a severance
payment is paid in a lump sum or sums based on a multiple or any percentage of
salary, the salary amount shall be deemed to accrue over the period of time that
it would normally have been paid had the salary continued at the rate in effect
on the termination date until the severance payments were exhausted. The term
"Basic Earnings" shall not include (i) payments constituting a "Bonus" (as
defined in this Plan), (ii) allowances, adjustments or bonuses that represent
special area or living allowances, (iii) commissions, (iv) contingent or other
irregular or extra compensation based upon contract completions or extended
travel assignments, (v) Employer contributions under this Plan, (vi) any other
form of compensation that does not constitute regular basic compensation, such
as restricted stock awards or stock options awarded under the Company's stock
option plans as in effect from time to time, and (vii) amounts earned after the
date benefits commence under the qualified defined benefit retirement plan of
the Employers.

Notwithstanding the above, "Basic Earnings" includes only that compensation that
is considered "wages" under Code section 3121(a)(1), without regard to any
limitations on amounts as may be from time to time stated therein.

If a Participant continues to earn Service during disability, his or her "Basic
Earnings" for the period of disability shall be deemed to be the same as such
Participant's "Basic Earnings" immediately prior thereto.

                  Benefit Period means a consecutive 36-month period (within the
120 months immediately preceding a Participant's termination of Service with all
Employers) in which the Participant receives his or her highest consecutive 36
months of (i) Basic Earnings plus (ii) Considered Bonus.

                  Benefits Executive Committee means the committee charged with
administering the Plan under Article IV of the Plan.

                  Board means the Board of Directors of the Company.

                  Bonus means a payment, converted to its monthly equivalent,
paid under an established incentive compensation practice, including bonus
continuation payments made pursuant to a severance plan, program, agreement or
policy maintained by the Company GSFCSI or any affiliate by which the
Participant was employed. In the event a severance payment is paid in a lump sum
or sums based on a multiple of deemed bonus, the payment(s) shall be divided by
the multiplier and each fraction thereof shall constitute a single annual
"Bonus," which shall be deemed paid on the customary annual bonus date (as
determined by the Committee) over the number of years represented by the
multiplier.

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In the event a severance payment is paid in a lump sum or sums and is 100% or
less than deemed bonus, the payment(s) shall be deemed to be paid on the
customary bonus date next following the date of the Participant's termination of
employment. The term "Bonus" shall not include (i) payments constituting "Basic
Earnings" (as defined in this Plan), (ii) allowances, adjustments or bonuses
that represent special area or living allowances, (iii) commissions, (iv)
contingent or other irregular or extra compensation based upon contract
completions or extended travel assignments, (v) Employer contributions under
this Plan, (vi) any other form of compensation that does not constitute regular
basic compensation, such as restricted stock awards or stock options awarded
under the Company's stock option plans as in effect from time to time, and (vii)
amounts earned after the date benefits commence under the qualified defined
benefit retirement plan of the Employers.

Notwithstanding the above, "Bonus" includes only that compensation that is
considered "wages" under Code section 3121(a)(1), without regard to any
limitations on amounts as may be from time to time stated therein.

                  If a Participant continues to earn Service during disability,
his or her "Bonus" for the period of disability shall be deemed to be the same
as such Participant's "Bonus" immediately prior thereto.

                  Cause means "Cause" as defined in the Participant's employment
agreement or severance agreement. If no such agreement is in effect, "Cause"
means willful conduct that is materially injurious to an Employer, monetarily or
otherwise; provided, however that (i) no termination of employment shall be for
Cause until the Participant has been delivered a copy of a written notice
setting forth that he or she is guilty of the conduct and specifying the
particulars thereof in detail and (ii) termination solely on account of
inadequate performance or incompetence shall not constitute termination with
Cause. For purposes of the preceding sentence, no act, nor failure to act, shall
be considered "willful" unless the Participant has acted, or failed to act,
without a reasonable belief that his or her action or failure to act was in the
best interest of an Employer.

                  Change in Control means the occurrence of any of the following
events:

(a) The acquisition by any individual, entity or group (within the meaning of
Section 13(d) or 14(d) of the U.S. Securities Exchange Act of 1934, as amended
(the "Exchange Act")) (a "Person"), other than an Excluded Person, of the
beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act)
of 35% or more of either (i) the then outstanding ordinary shares of the Company
or of any affiliate of the Company by which the Participant is employed or which
directly or indirectly owns or controls any affiliate by which the Participant
is employed (the "Outstanding Company Ordinary Shares") or (ii) the combined
voting power of the then outstanding voting securities of the Company or of any
affiliate of the Company by which the Participant is employed or which directly
or indirectly owns or controls any affiliate by which the Participant is
employed entitled to vote generally in the election of directors (the
"Outstanding Company Voting Securities"); provided, however, that neither an
acquisition by any employee benefit plan (or related

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trust) sponsored or maintained by the Company or by any affiliate controlled by
the Company nor an acquisition by an affiliate of the Company that remains under
the Company's control will constitute a Change in Control; or

(b) Individuals who, as of the date hereof, constitute the Board (the "Incumbent
Board") cease for any reason to constitute at least a majority of the Board;
provided, however, that any individual becoming a director subsequent to the
date hereof whose election, or nomination for election by the Company's
equityholders, was approved by a vote of at least two-thirds of the directors
then comprising the Incumbent Board will be considered as though such individual
were a member of the Incumbent Board, but excluding for this purpose any such
individual whose initial assumption of office occurs as a result of either an
actual or threatened election contest (meaning a solicitation of the type that
would be subject to Rule 14a-11 of Regulation 14A under the Exchange Act) or
other actual or threatened solicitation of proxies or consents by or on behalf
of a Person other than the Board; or

(c) Approval by the equityholders of the Company of a reorganization, merger,
consolidation or similar transaction to which the Company or any affiliate is a
party, in each case unless, following such reorganization, merger, consolidation
or similar transaction, (i) more than 50% of, respectively, the then outstanding
ordinary shares or shares of common stock of the corporation or other entity
resulting from such reorganization, merger, consolidation or similar transaction
and the combined voting power of the then outstanding voting securities of such
corporation or other entity entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Ordinary Shares and Outstanding
Company Voting Securities immediately prior to such reorganization, merger,
consolidation or similar transaction in substantially the same proportions as
their ownership, immediately prior to such reorganization, merger, consolidation
or similar transaction, of the Outstanding Company Ordinary Shares and
Outstanding Company Voting Securities, as the case may be, (ii) 50% of,
respectively, the then outstanding ordinary shares or shares of common stock of
the parent of the corporation or other entity resulting from such
reorganization, merger, consolidation or similar transaction and the combined
voting power of the then outstanding voting securities of the parent of such
corporation or other entity entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by the individuals
and entities who were the beneficial owners, respectively, of the Outstanding
Company Ordinary Shares and Outstanding Company Voting Securities immediately
prior to such reorganization, merger, consolidation or similar transaction,
(iii) no Person (excluding the Company, any affiliate of the Company that
remains under the Company's control, any employee benefit plan (or related
trust) sponsored or maintained by the Company or by any affiliate controlled by
the Company or such corporation resulting from such reorganization, merger,
consolidation or similar transaction, and any Person beneficially owning,
immediately prior to such reorganization, merger, consolidation or similar
transaction, directly or indirectly, 35% or more of the Outstanding Company
Ordinary shares or Outstanding Company Voting Securities, as the case may be)
beneficially owns, directly or indirectly, 35% or more of,

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respectively, the then outstanding ordinary shares or shares of common stock of
the corporation or other entity resulting from such reorganization, merger,
consolidation or similar transaction or the combined voting power of the then
outstanding voting securities of such corporation or other entity entitled to
vote generally in the election of directors, and (iv) at least a majority of the
members of the board of directors of the corporation resulting from such
reorganization, merger, consolidation or similar transaction were members of the
Incumbent Board at the time of the execution of the initial agreement providing
for such reorganization, merger, consolidation or similar transaction; or

(d) Approval by the equityholders of the Company of any plan or proposal that
would result, directly or indirectly, in (i) a complete liquidation or
dissolution of the Company or of any affiliate of the Company by which the
Participant is employed, or (ii) any sale or other disposition (or similar
transaction) (in a single transaction or series of related transactions) of (A)
50% or more of the assets or earnings power of the Company or any affiliate of
the Company by which the Participant is employed or which, directly or
indirectly, owns or controls any affiliate by which the Participant is employed
or (B) business operations that generated a majority of the consolidated
revenues (determined on the basis of the Company's four most recently completed
fiscal quarters for which reports have been completed) of the Company and its
affiliates immediately prior thereto, other than to an affiliate of the Company
or to a corporation or other entity with respect to which following such sale or
other disposition (1) more than 50% of, respectively, the then outstanding
ordinary shares or shares of common stock of such corporation or other entity
and the combined voting power of the then outstanding voting securities of such
corporation or other entity entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all of the individuals and entities who were the beneficial
owners, respectively, of the Outstanding Company Ordinary Shares and Outstanding
Company Voting Securities immediately prior to such sale or other disposition in
substantially the same proportions as their ownership, immediately prior to such
sale or other disposition, of the Outstanding Company Ordinary shares and
Outstanding Company Voting Securities, as the case may be, (2) no Person
(excluding the Company, any affiliate of the Company that remains under the
Company's control, any employee benefit plan (or related trust) sponsored or
maintained by the Company or by any affiliate controlled by the Company or such
corporation, and any Person beneficially owning, immediately prior to such sale
or other disposition, directly or indirectly, 35% or more of the Outstanding
Company Ordinary Shares or Outstanding Company Voting Securities, as the case
may be) beneficially owns, directly or indirectly, 35% or more of, respectively,
the then outstanding ordinary shares or shares of common stock of such
corporation or other entity or the combined voting power of the then outstanding
voting securities of such corporation or other entity entitled to vote generally
in the election of directors, and (3) at least a majority of the members of the
board of directors of such corporation were members of the Incumbent Board at
the time of the execution of the initial agreement or action of the Board
providing for such sale or other disposition of assets; or

(e) Approval by the equityholders of the Company of a "merger of equals" (which
for purposes of this Subsection shall mean a merger with another company of
relatively equal size) to which the Company is a party as a result of which the
persons who were equity

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holders of the Company immediately prior to the effective date of such merger
shall have beneficial ownership of less than 55% of the combined voting power
for election of members of the board (or equivalent) of the surviving entity or
its parent following the effective date of such merger, provided that the Board
shall have authority to increase said percentage as may in its sole discretion
be deemed appropriate to cover a specific transaction.

For purposes of the preceding sentence, the term "Excluded Person" shall mean
and include (i) any corporation beneficially owned by shareholders of the
Company in substantially the same proportion as their ownership of shares of the
Company and (ii) the Company and any affiliate of the Company. Also, for
purposes of the preceding sentence, the term "Board" shall mean the board of
directors of the Company.

                  Change in Control Termination means involuntary termination of
Service with all of the Employers (other than for Cause) or voluntary
termination of Service with all of the Employers for Good Reason within (i) the
period of time following a Change in Control described in a Participant's
employment agreement or severance agreement or (ii) if no such agreement is in
effect, within 24 months following a Change in Control. A Change in Control
Termination includes any termination that would have been so characterized under
the Prior Plan or the Legacy Santa Fe Plan.

                  Considered Bonus means the three highest Bonuses paid to a
Participant during any 36-month period. In calculating the 36-month period
described in the preceding sentence, any and all months of unpaid authorized
leave of absence shall be disregarded and shall not count as part of the
36-month period.

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

                  Company means GlobalSantaFe Corporation.

                  Compensation Committee means the Compensation Committee of the
Board.

                  Early Retirement Benefit means a Participant's Normal
Retirement Benefit earned to Early Retirement Date, reduced 5/12ths of 1% for
each month the Participant is less than age 62 on the date the benefits are
paid.

                  Early Retirement Date means the first day of the month
commencing on or immediately after the date of a Participant's termination of
Service with all Employers after the Participant's attainment of age 55 and the
completion of five years of Service or any later date elected by the Participant
at least 12 months prior to retirement and approved by the Benefits Executive
Committee, but not later than a Participant's Normal Retirement Date.

                  Effective Date means July 1, 2002.

                  Employers means the Company and its subsidiaries.

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                  GSFCSI means GlobalSantaFe Corporate Services Inc.

                  Good Reason means "Good Reason" as defined in the
Participant's employment agreement or severance agreement. If no such agreement
is in effect, "Good Reason" means the termination of employment caused by and
occurring within 90 days of the occurrence of any of the following events or
conditions:

                  (i) without the express written consent of the Participant,
the assignment to the Participant of any duties that are materially inconsistent
with Participant's position, duties and status with an Employer at the time of
the Change in Control;

                  (ii) without the express written consent of the Participant,
any action by an Employer occurs that results in a material diminution in the
position, duties or status of the Participant with the Employer as in effect at
the time of the Change in Control;

                  (iii) any transfer or proposed transfer of the Participant for
an extended period to a location more than 50 miles outside his principal place
of employment at the time of the Change in Control without his express written
consent, except for a transfer or proposed transfer for strategic reallocations
of the personnel reporting to the Participant;

                  (iv) the base annual salary of the Participant is reduced; or

                  (v) the failure by an Employer to provide the Participant with
incentive compensation opportunities consistent with those provided for under
each material incentive plan, program and practice as in effect immediately
prior to the Change in Control (or as in effect following the Change in Control,
if greater).

Unless otherwise provided by a Participant's employment or severance agreement,
"Good Reason" shall not be established by reason of any transfer or proposed
transfer of the Participant to an area or regional office of an Employer
existing on the Effective Date or to a new location of the administrative head
office of an Employer (or of any successor entity) following a Change in
Control.

                  Legacy Santa Fe Plan means the GlobalSantaFe Supplemental
Executive Retirement Plan, formerly the Santa Fe International Corporation
Supplemental Executive Retirement Plan.

                  Lump-Sum Equivalent means, with respect to any benefit
hereunder, a lump-sum payment equal in value at date of determination to such
benefit when determined actuarially, based upon the mortality table used in the
qualified defined benefit retirement plan of the Employers in which the
Participants participate and Applicable Rate.

                  Normal Retirement Benefit means a benefit equal to the product
of (a) times (b) times (c) offset by (d) as follows:

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                  (a) 4%;

                  (b) the monthly average of the Participant's Basic Earnings
and three highest Bonuses during the Benefit Period;

                  (c) the Participant's total years and completed months of
Service with an Employer to a maximum of 15 years;

                  (d) the monthly benefit payable under any qualified or
nonqualified defined benefit retirement plan of the Employers, assuming the
Participant received such benefit in the form of a single life annuity
commencing on the later of the Participant's normal retirement date under the
qualified defined benefit retirement plan of the Employers or the date benefits
are paid under this Plan.

In calculating a Participant's 36 highest consecutive months of Basic Earnings,
any and all months of unpaid authorized leave of absence shall be disregarded
and shall not count as part of Participant's 36-month period. In the case of a
Participant who has been married at least one year on his or her termination of
Service and Retirement Date or whose death is solely through accidental causes,
the Normal Retirement Benefit shall be deemed to be payable in the form of a
100% joint and survivor annuity. In all other cases, a Participant's Normal
Retirement Benefit shall be deemed payable in the form of a single life annuity.
The 100% joint and survivor benefit will be subject to a reduction of 1% of the
Participant's annual retirement benefit for each year that the Participant's
spouse is more than ten years younger than the Participant.

                  Normal Retirement Date means the first day of the month
following a Participant's 62nd birthday, or if the Participant's birthday is on
the first of the month, that day will be his or her Normal Retirement Date;
provided, however, that if the Participant has not completed 5 years of Service,
the Participant's Normal Retirement Date will be the earlier of the date he or
she completes 5 years of Service or the date he or she attains age 65.

                  Participant means an employee approved for participation in
the Plan by the Compensation Committee in accordance with Section 3.1 of the
Plan.

                  Plan means the GlobalSantaFe Supplemental Executive Retirement
Plan.

                  Prior Plan means the GlobalSantaFe Executive Supplemental
Retirement Plan of 1990, formerly the Global Marine Executive Supplemental
Retirement Plan of 1990.

                  Retirement Date means the date upon which a Participant elects
to receive a benefit under the Plan.

                  Service means periods of active employment, post-employment
salary continuation periods provided by a plan, program, agreement or policy of
an Employer, if any, and periods during which a Participant is disabled or on an
authorized leave of

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absence, so long as the Participant is continued as an active employee on the
employment rolls of an Employer, and provided that such periods occur prior to
the date benefits commence under the qualified defined benefit retirement plan
of the Employers. With respect to any Participant who receives a severance
payment in the form of a lump sum or sums, instead of a severance payment in the
form of salary continuation pursuant to normal practices, "Service" does not
include periods following termination of employment.

                  Unvested Participant means a Participant who terminates
Service prior to either (a) attainment of age 55 and completion of five years of
Service or (b) attainment of age 65.

                                   ARTICLE III

                               RETIREMENT BENEFITS

         3.1 Participation: A select group of management and highly compensated
employees of the Employers as identified by the Compensation Committee of the
Company are eligible to participate in the Plan. Actual participation in the
Plan by an eligible employee requires approval by the Company's Compensation
Committee. The Compensation Committee may terminate such employees'
participation in the Plan prospectively. Participation in the Plan shall
automatically cease upon a Participant's termination of Service with all
Employers except to the extent that such Participant may already be entitled to
receive a Normal Retirement Benefit or an Early Retirement Benefit under this
Plan as of the date of such termination.

         3.2 Vesting of Benefits and Forfeiture of Benefits: On and after the
date a Participant becomes entitled to receive, or to then terminate Service and
receive, a Normal Retirement Benefit or an Early Retirement Benefit under the
Plan, such benefits shall be deemed to be vested. Except as provided under the
Plan, a Participant who terminates Service with the Employers prior to the
earlier of (a) both attainment of age 55 and completion of five years of Service
with the Employers or (b) attainment of age 65 will not be entitled to a benefit
under the Plan.

         3.3 Normal Retirement Benefit: A Participant shall be entitled to
receive the Lump-Sum Equivalent of the Participant's Normal Retirement Benefit
in the event of his or her termination of Service with all Employers at any time
on or after the Participant's Normal Retirement Date.

         3.4 Early Retirement Benefit: A Participant shall be entitled to
receive the Lump-Sum Equivalent of his or her Early Retirement Benefit following
the Participant's Early Retirement Date.

         3.5 Benefit Payable upon a Change in Control: Upon a Change in Control
Termination of an Unvested Participant, such Participant will be entitled to a
payment of the Lump-Sum Equivalent of his or her Early Retirement Benefit. With
respect to a

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Participant who has not yet attained age 55, the payment will be calculated on
the basis of the subsidized Early Retirement Benefit that the Participant would
have earned at age 55, discounted to present value (using the Applicable Rate)
based on the Participant's actual age; provided, however, that no Participant
will be credited with additional Service for purposes of calculating his or her
retirement benefit.

         3.6 Benefit Payable Upon Death of Participant: If a Participant
terminates his or her employment due to death, he or she will be entitled to a
death benefit payable to his or her surviving spouse, if any. The death benefit
payable hereunder will be the Lump-Sum Equivalent of the survivor portion of the
earned benefit, which will be calculated as a 100% joint and survivor annuity on
the Participant's life. Any Unvested Participant who terminates employment due
to death will be deemed vested in his or her Early Retirement Benefit,
calculated as if the Participant had attained the greater of age 55 or the
Participant's actual age and discounted to present value (using the Applicable
Rate) based on the Participant's actual age at the time of his or her death;
provided however, that no Participant will be credited with additional Service
for the purpose of calculating his or her retirement benefit. To qualify for a
spousal benefit under this Section, either (i) a Participant and his or her
spouse must have been legally married to each other throughout the one-year
period ending on the date of the Participant's death or (ii) the Participant's
death must be through accidental causes alone.

         3.7 Termination for Cause: Notwithstanding anything to the contrary in
this Plan, any and all vested and unvested benefits under this Plan will be
forfeited upon a termination for Cause.

         3.8 Form and Timing of Benefit Payments. All benefits due under the
Plan shall be paid in the form of a lump sum within 60 days after the event
giving rise to the Participant's right to payment.

         3.9 Effect of an Agreement: Benefits under the Plan may be increased,
decreased or otherwise modified by any legally binding contractual agreement
between a Participant and the Company or GSFCSI.

                                   ARTICLE IV

                            MISCELLANEOUS PROVISIONS

         4.1 Plan Administration: The Plan will be administered by the Benefits
Executive Committee appointed by the Board of Directors of GSFCSI. The Benefits
Executive Committee shall have all right, discretion and power necessary to
supervise and control the administration of the Plan and to construe and
interpret all Plan terms and provisions. The determination of any fact by the
Benefits Executive Committee and the construction placed by the Benefits
Executive Committee upon the provisions of the Plan shall be binding upon all
Participants.

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         4.2 Amendment and Plan Termination: The Board may, at its sole
discretion, terminate, suspend or amend the Plan at any time or from time to
time, in whole or in part. Notwithstanding the foregoing, the Benefits Executive
Committee may amend the Plan by its own action, provided that such amendment is
permissible under the authority granted to the Benefits Executive Committee by
the Board as set forth in the Benefits Executive Committee's charter.

         If the Plan is ever terminated, all beneficiaries receiving benefits
and all Participants will be entitled an immediate payment of the Lump-Sum
Equivalent of their accrued, vested benefits under the Plan (if any). Each
Unvested Participant will be deemed vested in his or her Early Retirement
Benefit and will be entitled to the Lump-Sum Equivalent of such benefit,
calculated as if the Participant had attained the greater of age 55 or the
Participant's actual age and discounted to present value (using the Applicable
Rate) based on the Participant's actual age; provided, however, that no
Participant will be credited with additional Service for the purpose of
calculating his or her retirement benefit.

         4.3 Assignment of Benefits: A Participant may not, either voluntarily
or involuntarily, assign, anticipate, alienate, commute, pledge or encumber any
benefits to which he or she is or may become entitled to under the Plan, nor may
the same be subject to attachment or garnishment by any creditor of a
Participant.

         4.4 Not an Agreement of Service: Nothing in the establishment of the
Plan is to be construed as giving any Participant the right to be retained in
the Service of any Employer.

         4.5 Use and Form of Words: Words used herein in the masculine gender
shall be construed as also used in the feminine gender where they would so
apply, and vice versa. Words used in the singular form shall be construed as
also used in the plural form where they would so apply, and vice versa.

         4.6 Guarantee. By executing this Plan, the Company agrees to guarantee
the payment of all benefits hereunder.

                                    ARTICLE V

                                CLAIMS PROCEDURE

5.1 Filing Claims: In the event the Participant does not receive a distribution
from the Plan when due, or if the Participant does not agree with a matter
pertaining to his or her distribution under the Plan, the Participant may submit
a written claim to the Benefits Executive Committee. The Participant will be
notified in writing of the decision of the Benefits Executive Committee within
90 days after the written claim is received (or 180 days if it is a special
case).

         5.2 Denial of Benefits: If a claim for benefits is denied in whole or
in part, the Participant will be notified in writing as to the specific reasons
for the denial. Within a

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period of 60 days after receipt of such notification, the Participant may appeal
such denial in writing to the Benefits Executive Committee. If the Participant
does not appeal within the 60-day period, the denial will be considered final,
binding and conclusive.

         The Benefits Executive Committee will review the facts of the case and
will have the discretionary authority to make a final and conclusive
determination of the claim. Such determination will be issued in writing within
60 days after receipt of the written appeal (or within 120 days if special
circumstances require an extension of time for processing).

                  IN WITNESS WHEREOF, this Plan, as amended and restated, has
been executed as of the 23rd day of July 2002.

                                           GLOBALSANTAFE CORPORATE SERVICES INC.

                                           By s / Richard E. McClaine
                                              -------------------------------
                                               Richard E. McClaine
                                               Vice President

                  AND, FURTHER, has been executed in accordance with Section 4.6
of the Plan as of the 23rd day of July 2002.

                                            GLOBALSANTAFE CORPORATION

                                            By  Joe. E. Boyd
                                               --------------------------------
                                                Joe E. Boyd
                                                Senior Vice President, Human
                                                Resources and Corporate Affairs

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                                    EXHIBIT A

                            PARTICIPANTS IN THE PLAN

Joe E. Boyd

C. Stedman Garber, Jr.

Roger B. Hunt

Thomas R. Johnson

C. R. Luigs

Jon A. Marshall

Seals M. McCarty

James L. McCulloch

W. Matt Ralls

Robert E. Rose

Tom L. Seeliger

Douglas K. Vrooman

Bruce A. Watson

Marion M. Woolie

                                      -13-<PAGE>

                                                                    EXHIBIT 10.1

                                     WAIVER

I, Anthony G. Petrello, hereby agree that my loan in the amount of $2,881,915
made pursuant to Section 9.[c] Reimbursement of Business and Other Expenses:
Perquisites. and Schedule 9.[c] of my Employment Agreement effective the 1st day
of October, 1996, as amended, by an between Nabors Industries, Inc., a Delaware
Company and Anthony G. Petrello, [the "Employment Agreement"] which is currently
due on or before September 30, 2006, shall not be further extended,
notwithstanding the provisions of my Employment Agreement.

                                             /s/ Anthony G. Petrello
                                             -----------------------------------
                                             Anthony G. Petrello

                                             Dated: September 27, 2002

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