Document:

Form of Notice of Option Grant

 EXHIBIT 10.6 
 Draft 
 November 30, 2011 

 

			
	TO:	  	
		
	FROM:	  	
		
	RE:	  	Option Grant

 Atwood Oceanics, Inc. (the “Company”) hereby grants to you, the right and option to purchase, on the terms and
conditions hereinafter set forth in Appendix A (the “Terms and Conditions”), all or any part of an aggregate of              shares of the Common Stock, $1.00 par value, of the
Company at the exercise price of              per share (the “Options”), subject to adjustment as provided in Section IX of the Atwood Oceanics, Inc. Amended And Restated
2007 Long-Term Incentive Plan (the “Plan”), effective as of             , 201     (the “Date of Grant”), exercisable from time to time, subject to
the Terms and Conditions during a period expiring at the close of business on the ten (10) year anniversary of the Date of Grant (the “Expiration Date”). 
 The grant of Options is governed by the terms and conditions of the Plan, any rules and regulations adopted by the Compensation and Human Resources Committee of the Board of Directors of the Company, and
the Terms and Conditions which form a part of this award letter to you (the “Notice”). 
 [Name of signing officer]

  
 Page 1 of 5

 Appendix A 
 ATWOOD OCEANICS, INC. 
 AMENDED AND RESTATED 2007 LONG-TERM
INCENTIVE PLAN 
 TERMS AND CONDITIONS OF 

OPTION GRANT 
 The
options (the “Options”) granted to you on the “Date of Grant” set forth in the award letter to you (the “Award Letter”) by Atwood Oceanics, Inc. (the “Company”) are subject to the Amended and Restated 2007
Long-Term Incentive Plan (the “Plan”), these Terms and Conditions and any rules and regulations adopted by the Committee. Terms used herein and not otherwise defined shall have the meaning set forth in the Plan and the Award Letter.

 1. Vesting. The Options are non-exercisable during the one year period following the Date of Grant. Thereafter, commencing on the
anniversary of the Date of Grant (the “Anniversary Date”), the Options are exercisable at the times and for the percentage of shares herein granted as follows: 

 

	 	(i)	On or after the first Anniversary Date: 

 DATE -
                                         
       25%    (NUMBER shares) 
  

	 	(ii)	On or after the second Anniversary Date: 

 DATE            -
                                    25%    
(NUMBER shares) 
  

	 	(iii)	On or after the third Anniversary Date: 

 DATE            -
                                    25%    
(NUMBER shares) 
  

	 	(iv)	On or after the fourth Anniversary Date: 

 DATE            -
                                    25%    
(NUMBER shares) 
 Your right to exercise the Options is cumulative, so that any shares not purchased pursuant to exercise of vested Options
within any one of the periods above specified may be purchased thereafter in a subsequent period, in whole or in part, until the expiration or termination of the Options. In no event may the Options granted hereby be exercised to any extent after
the Expiration Date. 
 To the extent such rights shall not have been exercised and to the extent the Options were exercisable at the time of
your Retirement, death or Disability, you (or your personal representative in the case of death) shall be entitled to exercise all or any part of any Options which were vested but unexercised as of the termination of employment or death during the
remaining term of such Options. If your employment with the Company, its subsidiaries or affiliates (collectively, the “Company Group”) terminates for any other reason besides Retirement, death or Disability, you shall be entitled to
exercise all or any part of any Options which were vested but unexercised as of termination of employment for a period of up to three (3) months from such date of termination. 

  
 Page 2 of 5

 2. Change of Control. Notwithstanding the provisions of Section 1 of these Terms and Conditions,
in the event of a Change of Control, all Options granted hereby will become automatically fully vested and immediately exercisable. 
 3.
Exercise of Options. To exercise the Options, you must contact the Plan’s designated broker dealer specifying the number of shares to be purchased and tendering payment in cash or by certified or cashier’s check payable to the order
of the Company of the full purchase price of the shares to be purchased. Payment may also be made with irrevocable instructions to the broker dealer to sell a sufficient portion of the shares and deliver the sale proceeds to the Company in
satisfaction of the exercise price. Payments may also be made in Common Stock or a combination of cash and Common Stock, as specified in the Plan. 
 4. No Right to Continued Employment. The grant of the Options shall not create any right to remain in the employ of the Company Group. The Company Group retains the right to terminate your
employment at will, for due cause or otherwise. Your employment shall be deemed to continue during any leave of absence which has been authorized by the Company Group, provided that no exercise of Options may take place during any such authorized
leave of absence except during the first three (3) months thereof. 
 5. Satisfaction of Conditions. No shares of Common Stock
issuable upon the exercise of the Options shall be issued and delivered if the offering of the Common Stock covered by the Options, or the exercise of the Options violates or is not in compliance with all applicable requirements of law and the
Securities and Exchange Commission pertaining to the issuance and sale of such shares, and all applicable listing requirements of any national securities exchange on which shares of the same class are then listed. 

  
 Page 3 of 5

 6. Transferability. 
 (a) You may transfer the Options to (i) your ex-spouse pursuant to the terms of domestic relations order, (ii) your spouse, children or grandchildren, (iii) a trust or trusts for the
exclusive benefit of your spouse, children or grandchildren, or (iv) a partnership or limited liability company in which the your spouse, children or grandchildren are the only partners or members; provided in each case that there may be no
consideration for any such transfer and subsequent transfers of transferred Options shall be prohibited except those made in accordance with this section or by will or by the laws of descent and distribution. Following transfer, any such Options
shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer. The provisions with respect to termination of employment set forth in Section 1 of the Terms and Conditions shall continue to apply
to you, in which event the Options shall be exercisable by the transferee only to the extent and for the periods specified herein. You will remain subject to withholding taxes upon exercise of any such Options by the transferee. The Company shall
have no obligation whatsoever to provide notice to any transferee of any matter, including without limitation, early termination of an Option on account of your termination of employment with the Company Group. 

(b) Except as set forth above, no Option shall be transferable otherwise than by the will or by laws of descent and distribution, and all
Options shall be exercisable, during your lifetime only by you. You may request that the Common Stock purchased upon exercise of an Option may be issued or transferred into your name and another person jointly with rights of survivorship.

 7. Other Plans. Nothing herein contained shall affect your right to participate in and receive benefits under and in accordance with
the then current provisions of any pension, insurance, profit sharing or other welfare plan or program of the Company Group. 
 8. Rights as
Shareholders. Neither you nor any other person legally entitled to exercise the Options shall be entitled to any of the rights or privileges of a shareholder of the Company in respect of any shares issuable upon any exercise of the Options
unless such shares shall have been actually issued and delivered to your. 
 9. Plan Governs. The Options and the Notice are subject to
all of the terms and conditions of the Plan, except that no amendment to the Plan shall adversely affect your rights under the Notice. All the terms and conditions of the Plan, as may be amended from time to time, and any rules, guidelines and
procedures which may from time to time be established pursuant to the Plan, are hereby incorporated into the Notice. In the event of a discrepancy between the Notice and the Plan, the Plan shall govern. 

10. Withholding. Upon an exercise of the Options hereby granted, the Company Group may be required to withhold federal or local tax with respect
to the realization of compensation. The Company Group is hereby authorized to satisfy any such withholding requirement out of (i) any 

  
 Page 4 of 5

 
cash or Common Stock distributable upon exercise and (ii) any other cash or other compensation then or thereafter payable to you. To the extent that the Company Group in its sole discretion
determines that such sources are or may be insufficient to fully satisfy such withholding requirement, as a condition to the exercise of the Options, you shall deliver to the Company, on behalf of the Company Group, cash, cashier’s check or
other certified funds in an amount determined by the Company Group to be sufficient to satisfy any such withholding requirement. 
 11.
Governing Law. The Options have been granted, executed and delivered the day and year first above written at Houston, Texas, and the interpretation, performance and enforcement of the Notice shall be governed by the laws of the State of
Texas, without regard to conflicts of laws. The courts in Harris County, Texas shall be the exclusive venue for any dispute regarding the Plan or this Notice. 

  
 Page 5 of 5Form of Notice of Performance Unit Grant

 EXHIBIT 10.7 
 Draft 
 January 3, 2012 

[Date] 
  

			
	TO:	  	
		
	FROM:	  	
		
	RE:	  	Performance Unit Grant

 Atwood Oceanics, Inc. (the “Company”) hereby grants to you, effective as of
            , 201     (the “Date of Grant”),             performance units (each a
“Performance Unit”) under the Atwood Oceanics, Inc. Amended And Restated 2007 Long-Term Incentive Plan (the “Plan”). The Performance Units represent the opportunity to receive a specified number of shares of Common Stock based on
a multiple of the number of Performance Units granted (the “Target Amount”) and the “Payout Percentage” as defined in the Terms and Conditions of Performance Unit Grant, attached hereto as Appendix A (the “Terms and
Conditions”). The number of Performance Units is subject to adjustment as provided in Article IX of the Plan. 
 Except as otherwise
provided in Sections 3 or 4 of the Terms and Conditions, the Performance Units shall vest on the third anniversary of the Date of Grant; provided you remain continuously employed by the Company, its subsidiary or an affiliate throughout the
three-year period following the Date of Grant. 
 The grant of Performance Units is governed by the terms and conditions of the Plan, any rules
and regulations adopted by the Compensation and Human Resources Committee of the Board of Directors of the Company, and the Terms and Conditions which form a part of this award letter to you (the “Notice”). 

[Name of signing officer] 

  
 1 

 Appendix A 
 ATWOOD OCEANICS, INC. 
 AMENDED AND RESTATED 2007 LONG-TERM
INCENTIVE PLAN 
 TERMS AND CONDITIONS OF 

PERFORMANCE UNIT GRANT 
 The performance units (the “Performance Units”) granted to you on the “Date of Grant” set forth in the award letter to you (the “Award Letter”) by Atwood Oceanics, Inc. (the
“Company”) are subject to the Amended and Restated 2007 Long-Term Incentive Plan (the “Plan”), these Terms and Conditions, including Exhibit A hereto, and any rules and regulations adopted by the Committee. Terms used herein and
not otherwise defined shall have the meaning set forth in the Plan and the Award Letter. 
 1. Determination of Earned Performance Units.
The exact number of Performance Units that shall actually be earned by and issued to you shall be based upon the achievement by the Company of the performance standards as set forth in Exhibit A hereto over the three-year period beginning on the
January 1, 2012 and ending on December 31, 2014 (the “Performance Period”). The determination by the Committee with respect to the achievement of such performance standards shall be made as soon as administratively practicable
following the Performance Period after all necessary Company and peer information is available. The specific date on which such determination is formally made and approved by the Committee is referred to as the “Determination Date”. After
the Determination Date, the Company shall notify you of the number of Performance Units, if any, that have become “Earned Performance Units” in accordance with Exhibit A and the corresponding number of shares of Common Stock to be issued
to you in satisfaction of the award. The shares of Common Stock shall be issued to you on March 15 following the expiration of the Performance Period (the “Settlement Date”). 
 The performance standards and the number of Performance Units which may be earned are based on your Target Amount specified in the Award Letter and the Company’s Total Shareholder Return compared
against the Peer Group. The methodology for calculating the number of Earned Performance Units, including the definitions used therefor, is set forth in Exhibit A hereto. 
 2. Vesting/Forfeiture. Except as otherwise provided in Sections 3 or 4 below, the Performance Units shall vest on the third anniversary of the Date of Grant, provided you are continuously employed
by the Company Group throughout the Performance Period. If your employment with the Company, its subsidiary or an affiliate (collectively, the “Company Group”) terminates for any reason other than by reason of your death or your inability
to continue to actively work due to Disability, the Performance Units shall be automatically forfeited on the date of your termination of employment. 

  
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 3. Death or Disability. If during the vesting period your employment with the Company Group is
terminated by reason of your death or you become unable to continue active employment due to Disability, the Performance Units shall automatically become fully vested and the number of Earned Performance Units shall equal your Target Amount. The
shares of Common Stock in respect of the Earned Performance Units shall be issued to you thirty (30) days after your death or Disability, as applicable. 
 4. Change of Control. Notwithstanding the provisions of Sections 2 or 3 of these Terms and Conditions, in the event of a Change of Control during the vesting period, the Performance Units shall
automatically vest and the number of Earned Performance Units shall be equal to your Target Amount. Your shares of Common Stock in respect of the Earned Performance Units shall be issued to you thirty (30) days after the effective date of the
Change of Control. For the avoidance of doubt, in the event of a Change of Control, the term “fully earned” in Section 10.5 of the Plan shall mean Earned Performance Units equal to your Target Amount. 

5. Dividend Equivalents. You shall not be entitled to receive any cash dividends payable during the period beginning on the Grant Date and ending
on the Settlement Date. Any Earned Performance Units shall be subject to adjustment under Article IX of the Plan with respect to dividends or other distributions that are paid in shares of Common Stock. 

6. Transferability. You may not sell, transfer, pledge, exchange, hypothecate, or otherwise dispose of the shares of Common Stock subject to the
Performance Units until and unless you receive a distribution of shares of Common Stock in respect of the Earned Performance Units. 
 7. No
Right to Continued Employment. The award of Performance Units shall not create any right to remain in the employ of the Company Group. The Company Group retains the right to terminate your employment at will, for due cause or otherwise. Your
employment, as it relates to the vesting period, shall be deemed to continue during any leave of absence that has been authorized by the Company Group. 
 8. Other Plans. Nothing herein contained shall affect your right to participate in and receive benefits under and in accordance with the then current provisions of any pension, insurance, profit
sharing or other plan or program of the Company Group. 
 9. Rights as Shareholder. You shall not be entitled to any of the rights or
privileges of a shareholder of the Company, including the right to vote in respect of the shares of Common Stock, until and unless you receive a distribution of shares of Common Stock in respect of the Earned Performance Units. 

10. Plan Governs. The Performance Units and the Notice are subject to all of the terms and conditions of the Plan, except that no amendment to the
Plan shall adversely affect your rights under the Notice. All the terms and conditions of the Plan, as may be amended from time to time, and any rules, guidelines and procedures which may from time to time be established pursuant to the Plan are
hereby incorporated into the Notice. In the event of a discrepancy between the Notice and the Plan, the Plan shall govern. 

  
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 11. Withholding. Upon the delivery of shares of Common Stock to you, the Company Group may be
required to withhold federal or local tax with respect to the realization of compensation. You must satisfy any federal or local tax withholding requirements with respect to the realization of compensation upon the delivery of shares of Common Stock
to you by delivering to the Company cash in an amount to be sufficient to satisfy any such withholding requirement or, by default, the surrendering of shares to meet any, and all, tax withholding requirements. 

12. Code Section 409A; No Guarantee of Tax Consequences. The award of Performance Units is intended to be (i) exempt from
Section 409A of the Code (“Section 409A”), including, but not limited to, by reason of compliance with the short-term deferral exemption as specified in Treas. Reg. § 1.409A-1(b)(4); or (ii) in compliance with
Section 409A, and the provisions of the Notice shall be administered, interpreted and construed accordingly. Notwithstanding the foregoing provisions of the Notice, if you are a “specified employee” as such term is defined in
Section 409A, any amounts that would otherwise be payable hereunder as nonqualified deferred compensation within the meaning of Section 409A on account of separation from service (other than by reason of death) to you shall not be payable
before the earlier of (i) the date that is 6 months after the date of your separation from service, (ii) the date of your death, or (iii) the date that otherwise complies with the requirements of Section 409A. In addition,
notwithstanding the provisions of Section 4 of these Terms and Conditions, in the event of a Change of Control that does not meet the requirements of Treas. Reg. §1.409A-3(i)(5), any amounts that would otherwise be payable hereunder as
nonqualified deferred compensation within the meaning of Section 409A shall be fully vested at a number of Earned Performance Units equal to your Target Amount but shall be settled on the Settlement Date, or, if earlier, in accordance with the
provisions of Section 3 of these Terms and Conditions. To the extent required to comply with Section 409A, you shall be considered to have terminated employment with the Company when you incur a “separation from service” with the
Company within the meaning of Section 409A(a)(2)(A)(i) of the Code. The Company makes no commitment or guarantee to you that any federal or state tax treatment shall apply or be available to any person eligible for benefits under the Notice.

 13. Governing Law. The Plan and the Notice shall be governed by, and construed in accordance with, the laws of the State of Texas,
without regard to conflicts of laws. The courts in Harris County, Texas shall be the exclusive venue for any dispute regarding the Plan or the Notice. 

  
 4 

 Exhibit A 
 Methodology for Calculating Earned Performance Units 
 A. Definitions. For
purposes of determining the number of shares of Common Stock issuable to you in respect of the Earned Performance Units, the following definitions shall apply: 
  

	 	(1)	Ending Share Price means the average closing price of shares over nine trading days comprised of: four trading days prior to the Performance End Date, the
Performance End Date, and the four trading days after the Performance End Date. 

  

	 	(2)	Peer Group means Seadrill Ltd., Transocean Ltd., Ensco PLC, Noble Corporation, Diamond Offshore Drilling, Inc. and Rowan Companies to the extent such entities or
their successors are in existence and publicly traded as of the Performance End Date. 

  

	 	(3)	Performance Period means the period beginning on January 1, 2012 and ending December 31, 2014. 

 

	 	(4)	Performance End Date means December 31, 2014. 

  

	 	(5)	Starting Share Price means the average closing price of the shares over nine trading days comprised of: five trading days prior to January 1, 2012 and the
four trading days after January 1, 2012. 

  

	 	(6)	Total Shareholder Return means common stock price growth for each entity over the Performance Period, as measured by dividing the sum of the cumulative amount of
dividends for the Performance Period, assuming dividend reinvestment, and the difference between the entity’s Ending Share Price and the Starting Share Price; by the entity’s Starting Share Price. 

B. Committee Methodology. For purposes of determining the number of shares of Common Stock issuable to you in respect of the Earned Performance
Units, the Committee shall: 
  

	 	(1)	calculate the Total Shareholder Return for the Company and each company in the Peer Group; 

 

	 	(2)	rank the Company and each member of the Peer Group based on Total Shareholder Return with the company having the highest Total Shareholder Return ranking in the first
position and the company with the lowest Total Shareholder Return ranking in the seventh position. 

  
 5 

	 	(3)	determine the number of Earned Performance Units based on the Seven Company Payout Schedule below: 

 

					
	 Seven Company Payout
Schedule
	 
	 Atwood Ranking
	  	Payout Percentage	 
	 1
	  	 	200	% 
	 2
	  	 	150	% 
	 3
	  	 	100	% 
	 4
	  	 	75	% 
	 5
	  	 	50	% 
	 6
	  	 	0	% 
	 7
	  	 	0	% 

  

	 	(4)	multiply the Payout Percentage by your Target Amount. 

 If any calculation with respect to the Earned Performance Units would result in a fractional share, the number of shares of Common Stock to be issued shall be rounded down to the nearest whole share.

 C. Peer Group Changes. 
 (a) If, as a result of merger, acquisition or a similar corporate transaction, a member of the Peer Group ceases to be publicly traded (an “Affected Peer Company”) 

(i) prior to July 1, 2013, the Affected Peer Company shall not be included in the Seven Company Payout Schedule and
the following alternative schedules shall be used in its place: 
  

					
	 Six Company Payout
Schedule
	 
	 Atwood Ranking
	  	Payout Percentage	 
	 1
	  	 	200	% 
	 2
	  	 	150	% 
	 3
	  	 	100	% 
	 4
	  	 	75	% 
	 5
	  	 	50	% 
	 6
	  	 	0	% 
	
	 Five Company Payout
Schedule
	 
	 Atwood Ranking
	  	Payout Percentage	 
	 1
	  	 	200	% 
	 2
	  	 	150	% 
	 3
	  	 	100	% 
	 4
	  	 	50	% 
	 5
	  	 	0	% 

  
 6 

  

					
	 Four Company Payout
Schedule
	 
	 Atwood Ranking
	  	Payout Percentage	 
	 1
	  	 	200	% 
	 2
	  	 	100	% 
	 3
	  	 	100	% 
	 4
	  	 	0	% 

 (ii) on or subsequent to July 1, 2013, the Affected Peer Company shall remain in the
Peer Group and its Ending Share Price shall be determined by assuming that its performance for the remainder of the Performance Period was equivalent to the arithmetic average (up or down) of the remaining members of the Peer Group over the
remainder of the Performance Period. 
 (b) If a member of the Peer Group declares bankruptcy, it shall be deemed to remain in
the Peer Group until the Performance End Date and shall occupy the lowest ranking in the Payout Schedule. 

  
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