Document:

EX-10.2

 Exhibit 10.2 
 AMENDMENT NO. 1 TO 
 AMENDED AND RESTATED CREDIT AND GUARANTY
AGREEMENT 
 THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT (this
“Amendment”) dated as of November 6, 2014, to be effective as of September 30, 2014 (the “First Amendment Effective Date”), is by and among ADDUS HEALTHCARE, INC., an
Illinois corporation (“Addus Healthcare”), ADDUS HEALTHCARE (IDAHO), INC., a Delaware corporation (“Addus Idaho”), ADDUS HEALTHCARE (INDIANA), INC., a Delaware corporation
(“Addus Indiana”), ADDUS HEALTHCARE (NEVADA), INC., a Delaware corporation (“Addus Nevada”), ADDUS HEALTHCARE (NEW JERSEY), INC., a Delaware corporation
(“Addus New Jersey”), ADDUS HEALTHCARE (NORTH CAROLINA), INC., a Delaware corporation (“Addus North Carolina”), BENEFITS ASSURANCE CO., INC., a Delaware corporation
(“Benefits Assurance”), PHC ACQUISITION CORPORATION, a California corporation (“PHC Acquisition”), PROFESSIONAL RELIABLE NURSING SERVICE, INC., a California corporation
(“Professional Reliable”), ADDUS HEALTHCARE (SOUTH CAROLINA), INC., a Delaware corporation (“Addus South Carolina”), ADDUS HEALTHCARE (DELAWARE), INC., a Delaware
corporation (“Addus Delaware”), CURA PARTNERS, LLC, a Tennessee limited liability company (“Cura”; Addus Healthcare, Addus Idaho, Addus Indiana, Addus Nevada, Addus New Jersey,
Addus North Carolina, Benefits Assurance, PHC Acquisition, Professional Reliable, Addus South Carolina, Addus Delaware and Cura are collectively referred to herein as the “Borrowers” and individually referred to
herein, each a “Borrower”), and ADDUS HOMECARE CORPORATION, a Delaware corporation (“Holdings” and “Guarantor”; Guarantor and the Borrowers are
collectively referred to herein as the “Credit Parties” and individually referred to herein, each as a “Credit Party”), the Lenders, and FIFTH THIRD BANK, an Ohio banking
corporation (in its individual capacity, “Fifth Third”), as administrative agent (in such capacity as agent, “Agent”) for itself and all other Lenders. 

W I T N E S S E T H: 

WHEREAS, Agent, Fifth Third, as a Lender, Borrowers, Holdings and the Permitted Dissolved Entities (as defined below) are parties
to that certain Amended and Restated Credit and Guaranty Agreement, dated as of August 11, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”); 

WHEREAS, at the time of the closing of the Credit Agreement, it was contemplated that various borrowers, including Fort Smith, Little
Rock and Lowell, would be liquidated or dissolved within a certain period of time after the closing and such dissolutions were permitted under Section 6.13 of the Credit Agreement so long as certain notices and deliveries were met; 

WHEREAS, as of the date of this Amendment, each of Fort Smith, Little Rock and Lowell (collectively, the “Permitted
Dissolved Entities”) have been dissolved and are no longer “Borrowers” under the Credit Agreement; 

WHEREAS, the Borrowers, Agent, and the Lenders desire to amend the Credit Agreement, subject to the terms and conditions of this
Amendment; and 

 WHEREAS, this Amendment shall constitute one of the Loan Documents and these Recitals shall
be construed as part of this Amendment. 
 NOW, THEREFORE, for and in consideration of the premises and mutual agreements herein
contained and for the purposes of setting forth the terms and conditions of this Amendment, the parties, intending to be bound, hereby agree as follows: 
 Section 1. Incorporation of the Credit Agreement. All capitalized terms which are not defined herein shall have the same meanings as set forth in the Credit Agreement, and the Credit
Agreement, to the extent not inconsistent with this Amendment, is incorporated herein by this reference as though the same were set forth in its entirety. Except as specifically set forth herein, the Credit Agreement shall remain in full force and
effect and its provisions shall be binding on the parties hereto. 
 Section 2. Amendments of the Credit Agreement.
The Credit Parties, Agent and the Lenders hereby agree to amend the Credit Agreement as of the date hereof as follows: 
 (a)
Section 1.1 (Definitions). The following new definitions are added to Section 1.1 of the Credit Agreement in appropriate alphabetical order to read as follows: 

“First Amendment” shall mean that certain Amendment No. 1 to Amended and Restated Credit and Guaranty Agreement
dated as of November 6, 2014 to be effective as of the First Amendment Effective Date by and among the Borrowers, the other Credit Parties, the Agent and the Lenders. 
 “First Amendment Effective Date” shall mean September 30, 2014. 
 (b) Section 1.1 (Defined Terms). The following definitions set forth in Section 1.1 of the Credit Agreement are hereby amended and restated in their entirety to read as follows:

 “Applicable Margin” means, (a) with respect to the Commitment Fees payable under Section 2.13
hereof, 0.50%, (b) with respect to Reimbursement Obligations, 4.60%, (c) with respect to Base Rate Loans under the Revolving Credit, 1.60%, (d) with respect to Eurodollar Loans and Daily Floating LIBOR Loans under the Revolving
Credit, (i) from the Closing Date through and including one (1) day prior to the First Amendment Effective Date, 4.60% and (ii) from the First Amendment Effective Date and at all times thereafter, 3.50%, and (e) with respect to
the L/C Fees payable under Section 2.13 hereof, 2.00%. 
 “Borrower(s)” is defined in the
introductory paragraph of this Agreement. Notwithstanding the foregoing and for the avoidance of doubt, as of October 15, 2014, each of Fort Smith, Little Rock and Lowell have been dissolved and are no longer Borrowers hereunder. 

  
 -2-

 (c) Section 6.22(d) (Capital Expenditures). Section 6.22(d) of the
Credit Agreement is hereby amended and restated in its entirety to read as follows: 
 “(d) Capital Expenditures. The
Credit Parties will not, nor will they permit any Subsidiary to, incur or make any Capital Expenditures during any period set forth below in an amount exceeding the amount set forth opposite such period: 

 

					
	 Period
	  	Maximum
Capital Expenditures	 
	 Fiscal Year ending 2014
	  	$	7,000,000	  
	 Fiscal Year ending 2015
	  	$	2,500,000	  
	 Fiscal Year ending 2016
	  	$	2,500,000	  
	 Fiscal Year ending 2017
	  	$	2,500,000	  
	 Fiscal Year ending 2018
	  	$	2,500,000	  
	 Fiscal Year ending 2019
	  	$	2,500,000	  

 The amount of any Capital Expenditures permitted to be made in respect of any fiscal year, commencing
with the fiscal year ending December 31, 2016, shall be increased by one hundred percent (100%) of the unused amount of Capital Expenditures that were permitted to be made during the immediately preceding fiscal year pursuant hereto,
without giving effect to any carryover amount. Capital Expenditures in any fiscal year shall be deemed to use first, the amount permitted for such fiscal year without giving effect to any carryover amount and, second, any amount permitted to be
carried forward to such fiscal year.” 
 Section 3. Conditions of Effectiveness. This Amendment shall become
effective as of the date hereof, but only upon receipt by Agent of each of the following: 
 (a) four (4) original
counterparts of this Amendment fully executed on behalf of the Borrowers, each other Credit Party, Agent and the Lenders; and 

(b) such other certificates, instruments, documents, and agreements as may be reasonably required by Agent or its counsel, each of which
shall be in form and substance satisfactory to Agent and its counsel. 
 Section 4. Fees and Expenses. Borrower
agrees to pay on demand all reasonable costs and expenses of, or incurred by, Agent, including but not limited to, reasonable fees and disbursements of counsel to Agent, in connection with the evaluation, negotiation, preparation, execution and
delivery of this Amendment. 

  
 -3-

 Section 5. Security. Each Credit Party expressly acknowledges and agrees that
all collateral, security interests, liens, pledges and mortgages granted to Agent for the benefit of itself and the Lenders in connection with the Credit Agreement, this Amendment, or hereafter granted to Agent for the benefit of itself and the
Lenders, and all other supplements to the Credit Agreement or any Loan Document, extend to and cover all of the Obligations of the Credit Parties to Lenders, now existing or hereafter arising including, without limitation, those arising in
connection with the Credit Agreement, as amended by this Amendment, upon the terms set forth in such agreements, all of such security interests, liens, pledges, and mortgages are hereby ratified, reaffirmed, confirmed and approved. 

Section 6. Affirmation. Except as specifically amended pursuant to the terms hereof, the Credit Agreement and all other Loan
Documents (and all covenants, terms, conditions and agreements therein), shall remain in full force and effect, and are hereby ratified, reaffirmed, confirmed and approved in all respects by the Credit Parties. Each Credit Party covenants and agrees
to comply with all of the terms, covenants and conditions of the Credit Agreement, as amended hereby, and all other Loan Documents, notwithstanding any prior course of conduct, waivers, releases or other actions or inactions on the Agent’s or
any Lender’s part which might otherwise constitute or be construed as a waiver of or amendment to such terms, covenants and conditions. 
 Section 7. Representations and Warranties. Each Credit Party represents and warrants to Agent and Lenders that: 
 (a) It has all necessary power and authority to execute and deliver this Amendment and perform its obligations hereunder, (b) this Amendment and the Credit Agreement, as amended hereby, constitute
the legal, valid and binding obligations of such Credit Party and are enforceable against such Credit Party in accordance with their terms, and (c) neither the execution, delivery or performance by such Credit Party of this Amendment
(1) violates any law or regulation, or any other decree of any governmental body, (2) conflicts with or results in the breach or termination of, constitutes a default under or accelerates any performance required by, any indenture,
mortgage, deed of trust, lease, agreement or other instrument to which such Person is a party or by which such Person or any of its property is bound, (3) results in the creation or imposition of any Lien (other than Permitted Liens) upon any
of the Collateral, (4) violates or conflicts with the articles of incorporation (or articles of formation), bylaws (or operating agreement), or other organizational documents of such Credit Party, or (5) requires the consent, approval or
authorization of, or declaration or filing with, any other Person, except for those already duly obtained; 
 (b) No Default or
Event of Default shall have occurred and be continuing as of the date hereof; 
 (c) As of the date hereof, and after giving
effect to this Amendment and the transactions contemplated hereby, the representations and warranties of the Credit Parties contained in the Credit Agreement and any Loan Document are true and correct in all material respects (provided that if such
representation or warranty is by its terms qualified by concepts of materiality, such representation and warranty shall be true and correct in all respects) on and as of the date hereof, in each case except to the extent such representations and
warranties expressly relate to an earlier date in which case such representations and warranties shall be true and correct in all respects as of such earlier date; and 

  
 -4-

 (d) Since December 31, 2013, there has been no Material Adverse Effect. 

Section 8. Reference to, and Effect on, Credit Agreement and the Loan Documents. 

(a) Ratification of Credit Agreement and the Loan Documents. Except as specifically amended above or in connection with this
Amendment (as applicable), the Credit Agreement and the Loan Documents shall remain in full force and effect. Notwithstanding anything contained herein, the terms of this Amendment are not intended to and do not effect a novation of the Credit
Agreement or any Loan Document. Each Credit Party hereby ratifies and reaffirms each of the terms and conditions of the Credit Agreement, as amended hereby, and the Loan Documents, as amended in connection herewith, to which it is a party and all of
its obligations thereunder. 
 (b) No Waiver. The execution, delivery and effectiveness of this Amendment shall not
operate as a waiver of any right, power or remedy of Agent or any Lender under the Credit Agreement or any of the Loan Documents, except as expressly provided herein. 
 (c) References. Upon the effectiveness of this Amendment each reference in (a) the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” or words of
similar import and (b) any Loan Document to “the Credit Agreement,” or words of similar import shall, in each case and except as otherwise specifically stated therein, mean and be a reference to the Credit Agreement, as amended
hereby. 
 Section 9. Release. 
 (a) In consideration of Agent and Lenders entering into this Amendment, and for other good and valuable consideration, the receipt and sufficiency of which each Credit Party hereby acknowledges on its own
behalf and on behalf of its successors (including, without limitation, any receiver or trustee acting on behalf of any Credit Party and any debtor-in-possession with respect to any Credit Party), assigns, subsidiaries and Affiliates (collectively,
the “Releasors”), each Credit Party hereby forever releases, discharges and acquits Agent and Lenders and their respective parents, subsidiaries, shareholders, Affiliates, partners, trustees, officers, employees, directors, agents
and attorneys and their respective successors, heirs and assigns (collectively, the “Releasees”) from any and all claims, demands, liabilities, responsibilities, disputes, causes, damages, actions and causes of actions (whether at
law or in equity) indebtedness and obligations (collectively, “Claims”) of every type, kind, nature, description or character, including, without limitation, any so-called “lender liability” claims or defenses, and
irrespective of how, why or by reason of what facts, whether such Claims have heretofore arisen, are now existing or hereafter arise, or which could, might or be claimed to exist, of whatever kind or nature, whether known or unknown, suspected or
unsuspected, liquidated or unliquidated, matured or unmatured, fixed or contingent, each as though fully set forth herein at length, which may in any way arise out of, are connected with or in any way relate to actions or omissions which occurred on
or prior to the date hereof with respect to any Credit Party, any other obligor (if any), this Amendment, the Credit Agreement, the Obligations, any 

  
 -5-

 
Collateral, or any Loan Document and any third parties liable in whole or in part for the Obligations. This provision shall survive and continue in full force and effect whether or not the Credit
Parties shall satisfy all other provisions of this Amendment, the Credit Agreement or any of the Loan Documents, including payment in full of the Obligations. 
 (b) Each Credit Party hereby agrees that its obligation to release the Releasees as set forth herein shall include an obligation by the Credit Parties to indemnify and hold the Releasees harmless with
respect to any and all liabilities, obligations, losses, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever incurred by the Releasees, or any of them, whether direct, indirect or consequential, as
a result of or arising from or relating to any proceeding by, or on behalf of, any Person, including, without limitation, officers, directors, agents, trustees, creditors, partners or shareholders of any Credit Party, whether threatened or
initiated, asserting any claim for legal or equitable remedy under any statute, regulation or common law principle arising from or in connection with the negotiation, preparation, execution, delivery, performance, administration and enforcement of
this Amendment or any other document executed in connection herewith, other than to the extent determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from such Releasees’ gross negligence, willful
misconduct or bad faith. The foregoing indemnity shall survive the payment in full of the Obligations and the termination of this Amendment, the Credit Agreement and the Loan Documents. 

Section 10. Incorporation. The parties hereto acknowledge and agree that the terms and provisions of this Amendment amend,
add to and constitute a part of the Credit Agreement. Except as expressly modified and amended by the terms of, or in connection with, this Amendment (as applicable), all of the other terms and conditions of the Credit Agreement and all documents
executed in connection therewith or referred to or incorporated therein remain in full force and effect and are hereby ratified, reaffirmed, confirmed and approved. 
 Section 11. Conflict. If there is an express conflict between the terms of this Amendment and the terms of the Credit Agreement, or any of the other agreements or documents executed in
connection therewith or referred to or incorporated therein, the terms of this Amendment shall govern and control. 

Section 12. Governing Law. This Amendment shall be governed and construed in accordance with the internal laws (including,
without limitation, 735 ILSC Section 105/5-1 et seq., but otherwise without regard to the conflict-of-laws provisions) of the State of Illinois. 
 Section 13. Entire Agreement. This Amendment constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and supersedes all other understandings, oral or
written, with respect to the subject matter hereof. 
 Section 14. Counterparts. This Amendment may be executed in
two or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Delivery by facsimile or electronic transmission of a portable document file (also known as a .pdf file) of
an executed counterpart signature page shall be effective as a manually executed counterpart signature hereof. 

[SIGNATURE PAGES FOLLOW] 

  
 -6-

 (Signature Page to Amendment No. 1 to Amended and Restated Credit and
Guaranty Agreement) 
 IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of the date first
above written. 
  

					
	BORROWERS:	 	 ADDUS HEALTHCARE, INC., an Illinois corporation
 ADDUS HEALTHCARE (IDAHO), INC., a Delaware corporation
 ADDUS HEALTHCARE (INDIANA),
INC., a Delaware corporation
 ADDUS HEALTHCARE (NEVADA), INC., a Delaware corporation

ADDUS HEALTHCARE (NEW JERSEY), INC., a Delaware corporation
 ADDUS HEALTHCARE (NORTH CAROLINA), INC., a Delaware corporation
 BENEFITS ASSURANCE CO.,
INC., a Delaware corporation
 PHC ACQUISITION CORPORATION, a California corporation

PROFESSIONAL RELIABLE NURSING SERVICE, INC., a California corporation
 ADDUS HEALTHCARE (SOUTH CAROLINA), INC., a Delaware corporation
 ADDUS HEALTHCARE
(DELAWARE), INC., a Delaware corporation
 CURA PARTNERS, LLC, a Tennessee limited liability company

			
		 	By:	 	 /s/ Mark Heaney

		 		 	Mark Heaney
		 		 	As President of each of the above listed entities and in such capacity, intending by this signature to legally bind each of the above entities

  
 -7-

 (Signature Page to Amendment No. 1 to Amended and Restated Credit and
Guaranty Agreement) 
  

					
	OTHER CREDIT PARTIES:	 	ADDUS HOMECARE CORPORATION, a Delaware corporation
			
		 	By:	 	 /s/ Mark Heaney

		 		 	Mark Heaney
		 		 	 President

  
 -8-

 (Signature Page to Amendment No. 1 to Amended and Restated Credit and
Guaranty Agreement) 
  

					
	AGENT AND LENDER:	 	FIFTH THIRD BANK, an Ohio banking corporation, as Agent and a Lender
			
		 	By:	 	 /s/ Gregory H. Bork

		 		 	Gregory H. Bork
		 		 	Vice President

  
 -9-EX-10.5

 Exhibit 10.5 

NOBLE CORPORATION 
 2014
Short-Term Incentive Plan (“STIP”) 
 Plan Overview, Terms and Conditions 

Plan Purpose 
 The success of Noble Corporation
(“Noble”) and its subsidiaries (collectively, the “Company”) is a result of the efforts of all key employees. In order to focus each employee’s efforts on optimizing the Company’s overall operational and financial
results, the Company maintains this Short Term Incentive Plan (the “Plan”) to reward employees for successful achievement of specific goals. 
 An
effective incentive plan should both align employee interests with those of shareholders and motivate and influence employee behavior. Key positions within the Company have the ability to make a positive contribution to key factors that increase
shareholder value. These factors can be quantified and measured through achievement of various financial and operational targets, such as EBITDA, safety and cash operating margin. The objectives of using such targets in the formulation of the
specific Company goals are to link an employee’s annual incentive award more closely to the metrics that lead to the creation of shareholder wealth and to promote a culture of high performance and an environment of teamwork. 

Eligibility and Participation 
 All full-time shore-based
employees and select offshore employees (Rig Managers, Assistant Rig Managers and Captains) are eligible to receive a bonus under the Plan, based upon performance, subject to the approval of the Compensation Committee (the “Committee”) of
the Board of Directors (the “Board”) of Noble. Each such employee will be considered either a “Corporate” employee or a “Division” employee for purposes of determining the employee’s actual target bonus, as
described later. 
 To be eligible to receive a bonus payment with respect to a Plan year, an employee must be actively employed by the Company on the last
day of such Plan year and must continue to be employed through the date on which bonus payments for such Plan Year are made. An employee shall not be eligible to receive any bonus payment if the employee’s employment with the Company terminates
for any reason, either voluntarily or involuntarily (except as noted below), before that date on which bonus payments for a Plan year are made. The Plan year is also the calendar year unless otherwise specified. 

However, in the event of death, disability or retirement, the employee or estate of the former employee may receive a pro-rated payment from the Plan, at the
discretion of the Committee and the Chief Executive Officer (the “CEO”). For purposes of the Plan, “disability” means any termination of employment with the Company or an affiliate of the Company because of a long-term or total
disability, as determined by the Company’s disability insurance programs. “Retirement” means a termination of employment with the Company on a voluntary basis by a person if, immediately prior to such termination of employment, the
sum of the age and the number of years of continuous service of such person with the Company is equal to or greater than 60. 

  
 1 

 Plan Funding 

The Award Pool for 2014 will primarily be a function of the Company’s performance on two key metrics. 

 

	•	 	Company EBITDA versus budget (weighted 65%) 

  

	•	 	Company Safety results versus the IADC average (weighted 35%) 

 EBITDA will be defined as the Company’s
earnings before the deduction of interest, tax, depreciation and amortization expenses, subject to adjustment to exclude extraordinary gains or losses. 

The Company’s performance will be determined in each of these two measures according to the following scales: 

 

													
	 Company EBITDA (65%)
	 
	Level of Achievement	  	Threshold	 	 	Target	 	 	Maximum	 
				
	 % of Target
	  	 	75	% 	 	 	100	% 	 	 	115	% 
				
	 Bonus Pool Multiple
	  	 	0.50	  	 	 	1.00	  	 	 	2.00	  

  

							
	 Company Safety (35%)

	Level of Achievement	 	Minimum	 	Target	 	Maximum
				
	 Performance
	 	 Company LTIR

15% higher than

IADC Industry

Average
	 	 Company LTIR

same as
 IADC
Industry
 Average
	 	 Company LTIR

10% lower than

IADC Industry

Average

				
	 Bonus Pool Multiple
	 	0.50	 	1.00	 	2.00

 Achievement at levels between the points shown above will be determined via linear interpolation. Performance below Threshold
for EBITDA or Minimum for Safety will yield no pool funding for that portion of the Award Pool. Safety is measured by Lost Time Incident Rate (“LTIR”) as compared to the International Association of Drilling Contractors (“IADC”)
industry average. Note that the IADC Industry Average will be based on the twelve-month period ending September 30, 2014. 
 The Award Pool available
will be determined first by multiplying the sum of the target bonuses for all eligible employees at the end of the year (“Aggregate Target Bonuses”) by the Company’s weighted performance as measured by EBITDA and Safety results, based
on the scales above. This calculated result will be increased by 10% to establish a CEO Merit Performance Pool, thus yielding the Total Plan Award Pool for the year. The following illustrates the calculation of the Total Plan Award Pool, assuming
Aggregate Target Bonuses of $30 million, EBITDA performance at target (or 1.00 multiple) and Safety performance at halfway between target and maximum (or 1.50 multiple): 
  

									
	 Total Plan Award Pool
Calculation

	Step 1: Company Performance Calculation (“Award Pool”)
					
	EBITDA	 	 	  	Safety	 	 	  	 Company

Performance Multiple

	 (1.00 x .65)
	 	+	  	(1.50 x .35)	 	=	  	1.18
			
	Step 2: Total Plan Award Pool	 		  	
					
	Initial Pool	 	 	  	 +10%

(CEO Merit
 Performance
Pool)
	 	 	  	Total Plan Award Pool
	(1.18 x $30 million)	 	=	  	$35.40 million x 1.10	 	=	  	$38.94 million

  
 2 

 The Total Plan Award Pool will be allocated as described in the next sections. 

Individual Target Bonus 
 The target bonus for an employee
is an amount equal to the employee’s salary at the end of the Plan year multiplied by the assigned target bonus percentage. Target bonuses range from 4% to 110% of salary. The assigned targets are based on competitive market data and internal
equity considerations and are reviewed each year. Note that, for purposes of calculating the Aggregate Target Bonuses, a target bonus percentage of up to 6% will be used for those employees covered under the Plan that do not have a formal target
bonus percentage. 
 The determination of an individual’s actual award will be based 50% on the achievement of the stated Financial and Operating goals
under the Plan pursuant to the terms outlined in sections below, and 50% will be based on merit, individual and team performance and/or additional selected criteria, including regulatory compliance. 

Financial and Operating Goals 
 Goals for the following
categories will be approved by the Committee for each Plan year. The performance for the 50% of the bonus tied to Financial and Operating results will be based on the goals and weights as shown below, and are different for Corporate and Division
employees: 
  

					
	 Corporate Employees
	  	Assigned Weight	 
	 Company EBITDA
	  	 	65.0	% 
		
	 Company Safety
	  	 	35.0	% 

  

					
	 Division Employees
	  	Assigned Weight	 
	 Division Cash Operating Margin
	  	 	65.0	% 
		
	 Division Safety
	  	 	17.5	% 
		
	 Company Safety
	  	 	17.5	% 

 Cash operating margin is defined as contract drilling revenues less contract drilling cost including reimbursables. The
specific goals for the Company and each Division will be communicated after these are set by the Committee in the first quarter each year. The performance scales for 2014 for these metrics are provided in Exhibit 1. 

  
 3 

 Determination of Individual Awards 

Each target bonus will be adjusted by the overall Corporate and/or Division Financial and Operating results depending on the employee (see Exhibit 1). This
will be the Adjusted Target Bonus. 
 Next, an individual bonus multiplier ranging from 0 to a maximum of 2.0 may be applied to half of the Adjusted Target
Bonus to reflect merit, individual and team performance and/or additional selected criteria, including regulatory compliance, subject to the approval of the Committee and CEO. 

For example, if an individual’s bonus target at a Division is $10,000, and the Division performance multiple for Financial and Operating goals is 1.2,
the Adjusted Target Bonus would be $12,000 ($10,000 x 1.2); $6,000 for Financial and Operating performance, $6,000 for individual achievement. If the manager’s recommendation for individual achievement is 0.8 (or 80%), the final bonus adjusts
to $10,800 ($6,000 x 0.8 = $4,800 for individual achievement + $6,000 for Financial and Operating results). The aggregate total of these awards will be the “Aggregate Calculated Pool”. 

Amounts may be adjusted for employees hired or promoted during the Plan year considering length of service or time in position. Note that if on a cumulative
basis the sum of the awards in the Aggregate Calculated Pool is greater than the Total Plan Award Pool, bonuses will be adjusted on a pro-rata basis to remain within the constraints of the Total Plan Award Pool. 

Review and Approval 
 The Board will approve the
Company’s budget for the year in terms of EBITDA and Cash Operating Margin no later than March 31st of the year. The specific goals for EBITDA (Corporate employees) and Division Cash Operating Margin (Division employees) will be
communicated shortly thereafter. 
 If, after the establishment of goals for a Plan year, the budget changes substantially due to subsequent events, such as
the acquisition, spin-off or sale of assets, any unusual or non-recurring item or any unforeseen event that impacts the Company, a Division or the industry as a whole, then the Committee may make adjustments to the respective goals in order that the
affected participants may not be adversely impacted by such an event or item. Any such revised goals shall be applicable to the Plan year from and after the time of their approval. 

After the end of each Plan year, the Committee, in its best business judgment, will make the final determination on the size of the Total Plan Award Pool for
such Plan year. All bonus calculations, allocations and recommendations are subject to review and approval by the Committee. 
 Separately, managers having
responsibility for recommending the allocation of bonuses to eligible employees shall submit their recommended bonus for each employee to the Executive Vice President and the CEO for review and approval. Notwithstanding anything otherwise contained
in this Plan, the Committee and the CEO (and any delegated designee of the CEO) shall have the authority to adjust individual bonus amounts as deemed to be appropriate for any reason, including, but not limited to, Company or Division performance,
individual employee performance, employee conduct, etc. 

  
 4 

 At-Will Employment 

Nothing in the Plan guarantees or constitutes a contract for any specific term of employment or otherwise limits the Company’s or an employee’s right
to terminate the employment relationship for any reason at any time. 

  
 5 

 Exhibit 1 

2014 Financial and Operating Goals 

STIP 
 Corporate Employees 

 

													
	 Company EBITDA (65%)
	 
	Level of Achievement	  	Threshold	 	 	Target	 	 	Maximum	 
				
	 % of Target
	  	 	75	% 	 	 	100	% 	 	 	115	% 
				
	 Bonus Pool Multiple
	  	 	0.50	  	 	 	1.00	  	 	 	2.00	  

  

							
	 Company Safety (35%)

	Level of Achievement	 	Minimum	 	Target	 	Maximum
				
	 Performance
	 	 Company LTIR 15% higher than

IADC Industry

Average
	 	 Company LTIR

same as
 IADC
Industry
 Average
	 	 Company LTIR 10% lower than

IADC Industry

Average

				
	 Bonus Pool Multiple
	 	0.50	 	1.00	 	2.00

 Division Employees 
  

													
	 Division Cash Operating Margin
(65%)
	 
	Level of Achievement	  	Threshold	 	 	Target	 	 	Maximum	 
				
	 % of Target
	  	 	75	% 	 	 	100	% 	 	 	115	% 
				
	 Bonus Pool Multiple
	  	 	0.50	  	 	 	1.00	  	 	 	2.00	  

  

							
	 Division Safety (17.5%)

	Level of Achievement	 	Minimum	 	Target	 	Maximum
				
	 Performance
	 	 Division LTIR

15% higher than

IADC Industry

Average
	 	 Division LTIR

same as

IADC Industry

Average
	 	 Division LTIR

10% lower than

IADC Industry

Average

				
	 Bonus Pool Multiple
	 	0.50	 	1.00	 	2.00

  

							
	 Company Safety (17.5%)

	Level of Achievement	 	Minimum	 	Target	 	Maximum
				
	 Performance
	 	 Company LTIR

15% higher than

IADC Industry

Average
	 	 Company LTIR

same as
 IADC
Industry
 Average
	 	 Company LTIR

10% lower than

IADC Industry

Average

				
	 Bonus Pool Multiple
	 	0.50	 	1.00	 	2.00

 Notes: 
  

	(1)	Achievement at levels between the points shown will be determined via linear interpolation 

	(2) 	Safety is measured by Lost Time Incident Rate (“LTIR”) as compared to the International Association of Drilling Contractors (“IADC”) industry average. The IADC Industry Average will be based on the
twelve-month period ending September 30, 2014 

	(3) 	Cash operating margin is defined as contract drilling revenues less contract drilling cost including reimbursables 

  
 6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00237-of-00352.parquet"}]]