ROWAN COMPANIES, INC.

2005 SHORT-TERM INCENTIVE PLANS

 

PROFIT SHARING PLAN

 

Eligibility               All qualifying corporate or drilling division employees (approximately 330 total employees)

 

Measurement         Drilling segment EBITDA as a percentage of revenues in excess of a minimum threshold

Criteria  

 

Award              Aggregate profit sharing amount based upon EBITDA allocated to participants in proportion to Base Pay

 

Cap               Aggregate profit sharing amount may be capped at Board’s discretion

 

Base Pay        Normal salary/wage compensation, including any overtime, less any bonus and value attributable to stock options

 


 

BONUS PLAN

 

Eligibility              Executive and other officers, managers and certain key employees (approximately 80 total employees) arranged in six Tiers generally by salary and/or  responsibility level

 

Measurement         Drilling EBITDA relative to Budget

Criteria  

 

Bonus Target         Bonus Target varies from 15-75% of Base Pay depending upon the Tier

 

 

Award               Zero to 200% of Bonus Target

 

Committee          25-40% of Award is subject to Committee discretion (30% for CEO/CAO):

Discretion

 

Offset               Any Bonus Award is offset by Profit Sharing Award

 

[Information omitted regarding target levels with respect to specific quantitative or qualitative performance related-factors, or factors or criteria involving confidential commercial or business information, the disclosure of which would have an adverse effect on the registrant.]