NobleCorporation 10Q 20101109

NOBLE CORP ( NE )
10−Q
Quarterly report pursuant to sections 13 or 15(d)
Filed on 11/9/2010
Filed Period 9/30/2010
Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10−Q
þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended: September 30, 2010
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 000−53604
NOBLE CORPORATION
(Exact name of registrant as specified in its charter)
Switzerland 98−0619597
(State or other jurisdiction of incorporation or organization) (I.R.S. employer identification number)
Dorfstrasse 19A, Baar, Switzerland 6430
(Address of principal executive offices) (Zip Code)
Registrant’s Telephone Number, Including Area Code: 41 (41) 761−65−55
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
Shares, Par Value 4.06 CHF Per Share New York Stock Exchange
Commission file number: 001−31306
NOBLE CORPORATION
(Exact name of registrant as specified in its charter)
Cayman Islands 98−0366361

(State or other jurisdiction of incorporation or organization) (I.R.S. employer identification number)
Suite 3D, Landmark Square, 64 Earth Close, Georgetown, Grand Cayman, Cayman Islands, BWI
(Address of principal executive offices) (Zip Code)
Registrant’s Telephone Number, Including Area Code: (345) 938−0293
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
N/A N/A
Indicate by check mark whether each registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes þ No o
Indicate by check mark whether each registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File
required to be submitted and posted pursuant to Rule 405 of Regulation S−T (§232.405 of this chapter) during the preceding 12 months (or for such
shorter period that the registrant was required to submit and post such files). Yes þ No o
Indicate by check mark whether each registrant is a large accelerated filer, an accelerated filer, a non−accelerated filer or a smaller reporting company.
See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b−2 of the Exchange Act. (Check one):
Large accelerated filer þ Accelerated filer o Non−accelerated filer o Smaller reporting company o
Indicate by check mark whether each registrant is a shell company (as defined in Rule 12b−2 of the Act). Yes o No þ
Number of shares outstanding at October 31, 2010: Noble Corporation (Switzerland) — 252,280,175
Noble Corporation, a Cayman Islands company and a wholly owned subsidiary of Noble Corporation, a Swiss corporation, meets the
conditions set forth in General Instructions H(1) (a) and (b) to Form 10−Q and is therefore filing this Form 10−Q with the reduced disclosure
format contemplated by paragraphs (b) and (c) of General Instruction H(2) of Form 10−Q.
TABLE OF CONTENTS
Page
PART I FINANCIAL INFORMATION
Item 1 Financial Statements
Noble Corporation (Noble−Swiss) Financial Statements:
Consolidated Balance Sheet as of September 30, 2010 and December 31, 2009 3
Consolidated Statement of Income for the three and nine months ended September 30, 2010 and 2009 4
Consolidated Statement of Cash Flows for the nine months ended September 30, 2010 and 2009 5
Consolidated Statement of Equity for the nine months ended September 30, 2010 6
Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2010 and 2009 7
Noble Corporation (Noble−Cayman) Financial Statements:
Consolidated Balance Sheet as of September 30, 2010 and December 31, 2009 8
Consolidated Statement of Income for the three and nine months ended September 30, 2010 and 2009 9
Consolidated Statement of Cash Flows for the nine months ended September 30, 2010 and 2009 10
Consolidated Statement of Equity for the nine months ended September 30, 2010 11
Consolidated Statement of Comprehensive Income for the three and nine months ended September 30, 2010 and 2009 12
Notes to Combined Consolidated Financial Statements 13
Item 2 Management's Discussion and Analysis of Financial Condition and Results of Operations 43
Item 3 Quantitative and Qualitative Disclosures About Market Risk 61
Item 4 Controls and Procedures 63
PART II OTHER INFORMATION
Item 1 Legal Proceedings 64
Item 1A Risk Factors 64
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 66
Item 6 Exhibits 66
SIGNATURES 67
Index to Exhibits 68
Exhibit 3.1
Exhibit 31.1
Exhibit 31.2
Exhibit 31.3
Exhibit 32.1
Exhibit 32.2
Exhibit 32.3
EX−101 INSTANCE DOCUMENT
EX−101 SCHEMA DOCUMENT
EX−101 CALCULATION LINKBASE DOCUMENT
EX−101 LABELS LINKBASE DOCUMENT
EX−101 PRESENTATION LINKBASE DOCUMENT
EX−101 DEFINITION LINKBASE DOCUMENT
This combined Quarterly Report on Form 10−Q is separately filed by Noble Corporation, a Swiss corporation (“Noble−Swiss”), and Noble
Corporation, a Cayman Islands company (“Noble−Cayman”). Information in this filing relating to Noble−Cayman is filed by Noble−Swiss and
separately by Noble−Cayman on its own behalf. Noble−Cayman makes no representation as to information relating to Noble−Swiss (except as it may
relate to Noble−Cayman) or any other affiliate or subsidiary of Noble−Swiss. Since Noble−Cayman meets the conditions specified in General
Instructions H(1)(a) and (b) to Form 10−Q, it is permitted to use the reduced disclosure format for wholly owned subsidiaries of reporting companies.
Accordingly, Noble−Cayman has omitted from this report the information called for by Item 3 (Quantitative and Qualitative Disclosures about Market
Risk) of Part I of Form 10−Q and the following items of Part II of Form 10−Q: Item 2 (Unregistered Sales of Equity Securities and Use of Proceeds)
and Item 3 (Defaults upon Senior Securities).
This report should be read in its entirety as it pertains to each Registrant. Except where indicated, the Consolidated Financial Statements and the Notes
are combined. References in this Quarterly Report on Form 10−Q to “Noble,” the “Company,” “we,” “us,” “our” and words of similar meaning refer
collectively to Noble−Swiss and its consolidated subsidiaries, including Noble−Cayman, after March 26, 2009 and to Noble−Cayman and its
consolidated subsidiaries for periods through March 26, 2009. Noble−Swiss became a successor registrant to Noble−Cayman pursuant to Rule 12g−3
of the Securities Exchange Act of 1934, as amended, as a result of a series of transactions described in Note 1 to Item 1, Part I of this Quarterly Report
on Form 10−Q.
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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements
NOBLE CORPORATION (NOBLE−SWISS) AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)
September 30, December 31,

2010 2009
ASSETS
Current assets
Cash and cash equivalents $ 367,242 $ 735,493
Accounts receivable 487,029 647,454
Prepaid expenses and other current assets 133,786 100,243
Total current assets 988,057 1,483,190
Property and equipment

Drilling equipment and facilities 11,981,111 8,666,750
Other 167,290 143,477
12,148,401 8,810,227
Accumulated depreciation (2,468,867) (2,175,775)
9,679,534 6,634,452
Other assets 338,833 279,254
Total assets $ 11,006,424 $ 8,396,896
LIABILITIES AND EQUITY

Current liabilities
Current maturities of long−term debt $ 52,650 $ —
Accounts payable 277,944 197,800
Accrued payroll and related costs 127,046 100,167
Taxes payable 35,751 68,760
Other current liabilities 96,051 67,220
Total current liabilities 589,442 433,947
Long−term debt 2,670,701 750,946

Deferred income taxes 270,645 300,231
Other liabilities 274,546 123,340
Total liabilities 3,805,334 1,608,464
Commitments and contingencies
Shareholders’ equity
Shares; 262,324 shares and 261,975 shares outstanding 947,710 1,130,607
Treasury shares, at cost; 10,136 shares and 3,750 shares (373,813) (143,031)
Additional paid−in capital 31,350 —
Retained earnings 6,531,742 5,855,737
Accumulated other comprehensive loss (60,994) (54,881)
Total shareholders’ equity 7,075,995 6,788,432
Noncontrolling interests 125,095 —
Total equity 7,201,090 6,788,432
Total liabilities and equity $ 11,006,424 $ 8,396,896
See accompanying notes to the unaudited consolidated financial statements.
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CONSOLIDATED STATEMENT OF INCOME
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended

September 30, September 30,
2010 2009 2010 2009
Operating revenues
Contract drilling services $ 584,919 $ 874,969 $ 2,081,075 $ 2,615,571
Reimbursables 19,177 22,455 57,163 61,967
Labor contract drilling services 7,887 7,490 23,704 21,843
Other 635 721 1,449 1,277
612,618 905,635 2,163,391 2,700,658
Operating costs and expenses

Contract drilling services 315,844 250,842 845,870 742,752
Reimbursables 14,351 18,717 44,459 52,081
Depreciation and amortization 143,282 103,245 385,366 295,646
Selling, general and administrative 25,482 21,700 71,261 60,901
Loss on asset disposal/involuntary conversion, net — 2,076 — 31,053
504,261 401,222 1,363,526 1,196,332
Operating income 108,357 504,413 799,865 1,504,326
Other income (expense)

Interest expense, net of amount capitalized (4,144) (379) (5,119) (1,261)
Interest income and other, net 2,561 2,605 7,193 4,995
Income before income taxes 106,774 506,639 801,939 1,508,060

Income tax provision (20,287) (80,556) (126,801) (275,833)
Net income 86,487 426,083 675,138 1,232,227
Net (income)/loss attributable to noncontrolling interests (467) — (467) —
Net income attributable to Noble Corporation $ 86,020 $ 426,083 $ 674,671 $ 1,232,227
Net income per share

Basic $ 0.34 $ 1.63 $ 2.63 $ 4.72
Diluted $ 0.34 $ 1.63 $ 2.62 $ 4.70
Par value reduction/dividend per share $ 0.66 $ 0.04 $ 0.75 $ 0.08

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CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended

September 30,
2010 2009
Cash flows from operating activities
Net income $ 675,138 $ 1,232,227
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization 385,366 295,646
Loss on asset disposal/involuntary conversion, net — 31,053
Deferred income tax provision/(benefit) (29,586) 29,916
Share−based compensation expense 26,906 28,543
Pension contributions (14,823) (13,022)
Other changes in assets and liabilities, net of effect from acquisition:
Accounts receivable 250,917 (88,773)
Other current assets (22,962) (45,607)
Other assets 8,223 2,609
Accounts payable (12,635) 27,491
Other current liabilities (9,105) 21,881
Other liabilities 28,258 (6,751)
Net cash from operating activities 1,285,697 1,515,213
Cash flows from investing activities

New construction (381,928) (457,233)
Other capital expenditures (439,921) (342,399)
Major maintenance expenditures (64,244) (93,112)
Change in accrued capital expenditures 4,213 (44,493)
Acquisition of FDR Holdings Ltd., net of cash acquired (1,629,644) —
Net cash from investing activities (2,511,524) (937,237)
Cash flows from financing activities

Payments of other long−term debt — (172,700)
Proceeds from issuance of notes to joint venture partner 35,000 —
Proceeds from issuance of senior notes, net of debt issuance costs 1,238,074 —
Settlement of interest rate swaps (2,041) —
Proceeds from employee stock transactions 9,703 3,871
Dividends/par value reduction payments paid (193,869) (35,093)
Repurchases of employee shares surrendered for taxes (9,961) (975)
Repurchases of shares (219,330) (130,297)
Net cash from financing activities 857,576 (335,194)
Net (decrease) increase in cash and cash equivalents (368,251) 242,782

Cash and cash equivalents, beginning of period 735,493 513,311
Cash and cash equivalents, end of period $ 367,242 $ 756,093
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CONSOLIDATED STATEMENT OF EQUITY
(In thousands)
(Unaudited)
Accumulated
Additional Other
Shares Paid−in Retained Treasury Comprehensive Noncontrolling Total
Balance Par Value Capital Earnings Shares Loss Interests Equity
Balance at December 31,

2009 261,975 $ 1,130,607 $ — $ 5,855,737 $ (143,031) $ (54,881) $ — $ 6,788,432
Employee related equity

activity
Share−based
compensation
expense — — 26,906 — — — — 26,906
Issuance of
share−based
compensation
shares 77 335 (335) — — — — —
Contribution to
employee benefit
plans 8 30 194 — — — — 224
Exercise of stock
options 447 1,762 7,717 — — — — 9,479
Tax benefit of stock
options exercised — — 5,556 — — — — 5,556
Restricted shares
forfeited or
repurchased for
taxes (183) (804) 960 1,335 (11,452) — — (9,961)
Repurchases of shares — — — — (219,330) — — (219,330)
Net income — — — 674,671 — — 467 675,138
Dividends/par value
reduction payments
paid — (184,220) (9,648) (1) — — — (193,869)
Noncontrolling interests
from FDR Holdings,
Ltd. acquisition — — — — — — 124,628 124,628
Other comprehensive
income (loss), net — — — — — (6,113) — (6,113)
Balance at September 30,

2010 262,324 $ 947,710 $ 31,350 $ 6,531,742 $ (373,813) $ (60,994) $ 125,095 $ 7,201,090
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)

2010 2009 2010 2009
Net income $ 86,487 $ 426,083 $ 675,138 $ 1,232,227
Other comprehensive income (loss), net of tax

Foreign currency translation adjustments 4,198 (1,734) (2,263) (479)
Gain (loss) on foreign currency forward contracts 4,762 (1,445) 1,828 1,407
Gain (loss) on interest rate swaps (7,586) — (7,586) —
Amortization of deferred pension plan amounts 634 850 1,908 2,558
Other comprehensive income (loss), net 2,008 (2,329) (6,113) 3,486
Less: Net income attributable to noncontrolling interests (467) — (467) —
Comprehensive income attributable to Noble Corporation $ 88,028 $ 423,754 $ 668,558 $ 1,235,713
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NOBLE CORPORATION (NOBLE−CAYMAN) AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET
(In thousands)
(Unaudited)

2010 2009
ASSETS
Current assets
Cash and cash equivalents $ 344,415 $ 726,225
Accounts receivable 487,022 647,454
Due from affiliate 598,022 191,004
Other current assets 130,788 99,206
Total current assets 1,560,247 1,663,889

Drilling equipment and facilities 11,981,111 8,666,750
Other 138,757 115,414
12,119,868 8,782,164
Accumulated depreciation (2,468,275) (2,175,775)
9,651,593 6,606,389
Other assets 338,822 279,139
Total assets $ 11,550,662 $ 8,549,417

Current liabilities
Current maturities of long−term debt $ 52,650 $ —
Accounts payable 269,718 197,712
Accrued payroll and related costs 120,299 99,372
Taxes payable 21,752 61,577
Other current liabilities 95,963 67,246
Total current liabilities 560,382 425,907
Long−term debt 2,670,701 750,946

Deferred income taxes 270,645 300,231
Other liabilities 274,567 123,137
Total liabilities 3,776,295 1,600,221
Shareholder equity
Ordinary shares; 261,246 shares outstanding 26,125 26,125
Capital in excess of par value 368,374 368,374
Retained earnings 7,315,767 6,609,578
Accumulated other comprehensive loss (60,994) (54,881)
Total shareholder equity 7,649,272 6,949,196
Noncontrolling interests 125,095 —
Total equity 7,774,367 6,949,196
Total liabilities and equity $ 11,550,662 $ 8,549,417
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CONSOLIDATED STATEMENT OF INCOME
(In thousands)
(Unaudited)

2010 2009 2010 2009
Operating revenues
Contract drilling services $ 584,919 $ 874,969 $ 2,081,075 $ 2,615,571
Reimbursables 19,177 22,455 57,163 61,967
Other 635 721 1,449 1,277
612,618 905,635 2,163,391 2,700,658

Contract drilling services 315,787 250,842 839,652 742,752
Reimbursables 14,351 18,717 44,459 52,081
Depreciation and amortization 143,059 103,245 384,775 295,646
Selling, general and administrative 16,715 22,623 48,137 60,901
Loss on asset disposal/involuntary conversion, net — 2,076 — 31,053
495,214 402,145 1,333,593 1,196,332
Operating income 117,404 503,490 829,798 1,504,326

Interest expense, net of amount capitalized (4,147) (379) (5,122) (1,261)
Interest income and other, net 1,210 2,574 6,320 4,964
Income before income taxes 114,467 505,685 830,996 1,508,029

Income tax provision (19,401) (80,556) (124,340) (275,833)
Net income 95,066 425,129 706,656 1,232,196
Net (income)/loss attributable to noncontrolling interests (467) — (467) —
See accompanying notes to the unaudited consolidated financial statements
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CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)
(Unaudited)
Nine Months Ended

September 30,
2010 2009
Cash flows from operating activities
Net income $ 706,656 $ 1,232,196
Adjustments to reconcile net income to net cash from operating activities:
Depreciation and amortization 384,775 295,646
Loss on asset disposal/involuntary conversion, net — 31,053
Deferred income tax provision/(benefit) (29,586) 29,916
Share−based compensation expense — 8,399
Pension contributions (14,823) (13,022)
Other changes in assets and liabilities, net of effect from acquisition:
Accounts receivable 250,924 (88,773)
Due from affiliates, net (407,018) (73,729)
Other current assets (21,001) (45,017)
Other assets 8,118 2,702
Accounts payable (20,773) 27,491
Other current liabilities (27,543) 15,797
Other liabilities 28,482 (6,917)
Net cash from operating activities 858,211 1,415,742
Cash flows from investing activities

New construction (381,928) (457,233)
Other capital expenditures (439,451) (342,281)
Major maintenance expenditures (64,244) (93,112)
Change in accrued capital expenditures 4,213 (44,493)
Acquisition of FDR Holdings, Ltd., net of cash acquired (1,629,644) —
Net cash from investing activities (2,511,054) (937,119)
Cash flows from financing activities

Payments of other long−term debt — (172,700)
Proceeds from issuance of notes to joint venture partner 35,000 —
Proceeds from issuance of senior notes, net of debt issuance costs 1,238,074 —
Settlement of interest rate swap (2,041) —
Employee stock transactions — (5,416)
Dividends/par value reduction payments paid — (10,470)
Repurchases of ordinary shares — (60,867)
Net cash from financing activities 1,271,033 (249,453)
Net (decrease) increase in cash and cash equivalents (381,810) 229,170

Cash and cash equivalents, beginning of period 726,225 513,311
Cash and cash equivalents, end of period $ 344,415 $ 742,481
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CONSOLIDATED STATEMENT OF EQUITY
(In thousands)
(Unaudited)
Accumulated
Capital in Other Total
Shares Excess of Retained Comprehensive Noncontrolling Shareholder
Balance Par Value Par Value Earnings Loss Interests Equity
Balance at December 31,

2009 261,246 $ 26,125 $ 368,374 $6,609,578 $ (54,881) $ — $ 6,949,196
Net income — — — 706,189 — 467 706,656

Noncontrolling interests
from FDR Holdings,
Ltd. acquisition — — — — — 124,628 124,628
Other comprehensive
income (loss), net — — — — (6,113) — (6,113)
Balance at September 30,

2010 261,246 $ 26,125 $ 368,374 $7,315,767 $ (60,994) $ 125,095 $ 7,774,367
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)

2010 2009 2010 2009
Net income $ 95,066 $ 425,129 $ 706,656 $ 1,232,196
Other comprehensive income (loss), net of tax

Foreign currency translation adjustments 4,198 (1,734) (2,263) (479)
Gain (loss) on foreign currency forward contracts 4,762 (1,445) 1,828 1,407
Gain (loss) on interest rate swaps (7,586) — (7,586) —
Amortization of deferred pension plan amounts 634 850 1,908 2,558
Other comprehensive income (loss), net 2,008 (2,329) (6,113) 3,486
Less: Net income attributable to noncontrolling interests (467) — (467) —
Comprehensive income attributable to Noble Corporation $ 96,607 $ 422,800 $ 700,076 $ 1,235,682
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unless otherwise indicated, dollar amounts in tables are in thousands, except per share data)
Note 1 — Basis of Presentation
On March 26, 2009, we completed a series of transactions that effectively changed the place of incorporation of our parent holding
company from the Cayman Islands to Switzerland. As a result of these transactions, Noble−Cayman, our former publicly−traded parent holding
company, became a direct, wholly−owned subsidiary of Noble−Swiss, our current publicly−traded parent company. Noble−Swiss’ principal asset is
100% of the shares of Noble−Cayman. Noble−Cayman has no public equity outstanding after March 26, 2009. The consolidated financial statements
of Noble−Swiss include the accounts of Noble−Cayman, and Noble−Swiss conducts substantially all of its business through Noble−Cayman and its
subsidiaries. In connection with these transactions, we relocated our principal executive offices, executive officers and selected personnel to Geneva,
Switzerland.
The accompanying unaudited consolidated financial statements of Noble−Swiss and Noble−Cayman have been prepared pursuant to the
rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) as they pertain to Form 10−Q. Accordingly, certain information and
disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of
America (“GAAP”) have been condensed or omitted pursuant to such rules and regulations. The unaudited financial statements reflect all adjustments
which are, in the opinion of management, necessary for a fair statement of the financial position and results of operations for the interim periods, on a
basis consistent with the annual audited consolidated financial statements. All such adjustments are of a normal recurring nature. The Consolidated
Balance Sheets at December 31, 2009 presented herein are derived from the December 31, 2009, audited consolidated financial statements. These
interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report
on Form 10−K for the year ended December 31, 2009, filed by both Noble−Swiss and Noble−Cayman. The results of operations for interim periods
are not necessarily indicative of the results to be expected for the full year.
Certain amounts in prior periods have been reclassified to conform to the current year presentation.
Note 2 — Acquisition of FDR Holdings Limited
On July 28, 2010, Noble−Swiss and Noble AM Merger Co., a Cayman Islands company and indirect wholly owned subsidiary of
Noble−Swiss (“Merger Sub”), completed the acquisition of FDR Holdings Limited, a Cayman Islands company (“Frontier”). Under the terms of the
Agreement and Plan of Merger with Frontier and certain of Frontier’s shareholders, Merger Sub merged with and into Frontier, with Frontier surviving
as an indirect wholly owned subsidiary of Noble−Swiss and a wholly owned subsidiary of Noble−Cayman. The Frontier acquisition was completed in
order to strategically expand and enhance our global fleet. The Frontier acquisition added three dynamically positioned drillships (including two
Bully−class joint venture−owned drillships under construction), two conventionally moored drillships, including one which is Arctic−class, a
conventionally moored deepwater semisubmersible drilling rig and one dynamically positioned floating production, storage and offloading vessel
(“FPSO”) to our fleet. Frontier’s results of operations were included in our results beginning July 28, 2010. The purchase price was $1.7 billion in cash
plus liabilities assumed and we funded the cash consideration paid at closing of approximately $1.7 billion using proceeds from our July 2010 offering
of senior notes and existing cash on hand.
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The following table summarizes our preliminary allocation of the purchase price to the estimated fair values of the assets acquired and
liabilities assumed on the acquisition date of July 28, 2010:
Fair value
ASSETS
Cash and cash equivalents $ 77,375
Accounts receivable, net of $2,111 reserve 58,229
Other current assets 11,296
Other assets 11,469
Drilling equipment 2,528,759
Value of in−place contracts 77,260
Total assets acquired $ 2,764,388
LIABILITIES
Accounts payable $ 88,566
Other current liabilities 34,360
Consolidated joint ventures notes payable 688,748
Other liabilities 36,824
Non−controlling interests 124,628
Value of in−place contracts 84,243
Total liabilities assumed 1,057,369
Cash consideration paid $ 1,707,019
The fair value of cash and cash equivalents, accounts receivable, other current assets, accounts payable and other current liabilities was
generally determined using historical carrying values given the short term nature of these items. The fair values of drilling equipment, in−place
contracts and noncontrolling interests were determined using management’s estimates of future net cash flows. Such estimated future cash flows were
discounted at an appropriate risk−adjusted rate of return. The fair values of the consolidated joint venture notes payable and derivatives were
determined based on a discounted cash flow model utilizing an appropriate market or risk−adjusted yield. The fair value of other assets and other
liabilities, related to long−term tax items, was derived using estimates made by management. Intangible assets consisted of fair value estimates for
in−place contracts and will be amortized over the life of the respective contract. The weighted average life of those contracts totaled approximately 3.0
years as of the date of the acquisition.
Any change in the estimated fair value of assets acquired and liabilities assumed, prior to the final determination of such values, will
change the amount of the purchase price allocation. Any subsequent changes to the purchase price allocation that are material to our consolidated
financial results will be adjusted retroactively. We are currently not aware of any significant potential changes to the preliminary purchase price
allocation, although we are still reviewing open tax positions and accrued payables. No material contingencies existed at the date of acquisition. We
anticipate completing the purchase price allocation by December 31, 2010.
As of September 30, 2010, we have incurred $19 million in acquisition costs related to the Frontier acquisition. These costs have been
expensed and are included in contract drilling services expense.
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The following unaudited pro forma financial information for the three and nine months ended September 30, 2010 and 2009, gives effect
to the Frontier acquisition as if it had occurred at the beginning of the periods presented. The pro forma financial information for the nine months
ended September 30, 2010 includes pro forma results for the period prior to the closing date of July 28, 2010 and actual results for the period from
July 28, 2010 through September 30, 2010. The pro forma results are based on historical data and are not intended to be indicative of the results of
future operations.
Three months ended Nine months ended

2010 2009 2010 2009
Total operating revenues $ 647,700 $ 1,004,974 $ 2,341,579 $ 2,940,175
Net income 85,282 425,478 $ 621,962 1,214,384
Net income per share $ 0.33 $ 1.63 $ 2.42 $ 4.64
Revenues from the Frontier rigs totaled $48 million from the closing date of July 28, 2010 through September 30, 2010. Operating
expenses for this same period totaled $43 million for the Frontier rigs.
Consolidated joint ventures
In connection with the Frontier acquisition, we assumed Frontier’s 50 percent interest in two joint ventures, each with a subsidiary of
Royal Dutch Shell, PLC (“Shell”), for the construction and operation of the two Bully−class drillships. Since these entities’ equity at risk is insufficient
to permit them to carry on their activities without additional subordinated financial support, they each meet the criteria for a variable interest entity.
We have determined that we are the primary beneficiary for accounting purposes. Our determination is based on our ability to effectively control the
principal activities of the entity as the primary maker of operational decisions. Additionally, we receive a management fee to oversee the construction
of, and to manage the operation and maintenance of, the drillships, which is deemed a preference payment under current accounting literature.
Accordingly, we consolidate the entities in our consolidated financial statements, intercompany transactions are eliminated, and the equity interest that
is not owned by us is presented as noncontrolling interests on our Consolidated Balance Sheets.
At September 30, 2010, the combined carrying amount of the drillships was $997 million and total outstanding debt related to the joint
ventures was $759 million, which includes $70 million of joint venture partner notes issued in September 2010. Our portion of these joint venture
partner loans, which totaled $35 million, has been eliminated in our Consolidated Balance Sheets.
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Note 3 — Share Data
Share capital
The following is a detail of Noble−Swiss’ share capital as of September 30, 2010 and December 31, 2009 (in thousands):

2010 2009
Shares outstanding and trading 252,188 258,225

Treasury shares 10,136 3,750
Total shares outstanding 262,324 261,975
Treasury shares held for share−based compensation plans 13,942 14,291
Total shares authorized for issuance 276,266 276,266
Par value (in Swiss Francs) 4.06 4.85

Shares authorized for issuance by Noble−Swiss at September 30, 2010 totalled 276.3 million shares and include 10.1 million shares held in
treasury and 13.9 million shares held by a wholly−owned subsidiary. Repurchased treasury shares are recorded at cost, and include shares repurchased
pursuant to our approved share repurchase program discussed below and shares surrendered by employees for taxes payable upon the vesting of
restricted stock. Our Board of Directors is authorized to issue up to a maximum of 414.4 million shares without additional shareholder approval and
without conditions regarding use.
Our Board of Directors may further increase Noble−Swiss’ share capital through the issuance of up to 138.1 million conditionally
authorized registered shares without obtaining additional shareholder approval. The issuance of these conditionally authorized registered shares is
subject to certain conditions regarding their use.
Treasury shares/share repurchases
Share repurchases were made pursuant to the share repurchase program that our Board of Directors authorized and adopted. Subsequent to
our 2009 Swiss migration, all shares repurchased under our share repurchase program are held in treasury. During the three and nine months ended
September 30, 2010, we repurchased 4.0 million and 6.1 million shares under this plan, respectively. At September 30, 2010, 6.8 million shares
remained available under this authorization. Treasury shares held at September 30, 2010 include 9.9 million shares repurchased under our share
repurchase program and 0.2 million shares surrendered by employees for taxes payable upon the vesting of restricted stock.
Earnings per share
Our unvested share−based payment awards, which include restricted shares and restricted units, contain non−forfeitable rights to dividends
and are considered participating securities and should be included in the computation of earnings per share pursuant to the “two−class” method. The
“two−class” method allocates undistributed earnings between common shares and participating securities. The diluted earnings per share calculation
under the “two−class” method also includes the dilutive effect of potential share issuances in connection with stock options. The dilutive effect of
stock options is determined using the treasury stock method.
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The following table sets forth the computation of basic and diluted earnings per share for Noble−Swiss.
Three months ended Nine months ended

2010 2009 2010 2009
Allocation of net income
Basic
Earnings allocated to unvested share−based payment
awards (828) (4,520) (6,416) (12,176)
Net income to common shareholders — basic $ 85,192 $ 421,563 $ 668,255 $ 1,220,051
Diluted
Earnings allocated to unvested share−based payment
awards (825) (4,505) (6,394) (12,141)
Net income to common shareholders — diluted $ 85,195 $ 421,578 $ 668,277 $ 1,220,086
Weighted average shares outstanding — basic 252,513 257,913 253,944 258,550

Incremental shares issuable from assumed exercise of stock
options 671 925 855 778
Weighted average shares outstanding — diluted 253,184 258,838 254,799 259,328
Weighted average unvested share−based payment awards 2,453 2,765 2,438 2,581
Earnings per share

Basic $ 0.34 $ 1.63 $ 2.63 $ 4.72
Diluted $ 0.34 $ 1.63 $ 2.62 $ 4.70
Only those items having a dilutive impact on our basic net earnings per share are included in diluted earnings per share. At September 30,
2010, stock options totaling approximately 0.8 million were excluded from the diluted earnings per share as they were not dilutive as compared to
0.6 million at September 30, 2009.
Note 4 — Property and Equipment
Interest is capitalized on construction−in−progress at the weighted average cost of debt outstanding during the period of construction.
Capitalized interest was $25 million and $51 million for the three and nine months ended September 30, 2010, respectively, as compared to $13
million and $42 million for the three and nine months ended September 30, 2009, respectively.
During the first quarter of 2009, we recognized a charge of $12 million related to the Noble Fri Rodli, a submersible that has been cold
stacked since October 2007. We recorded the charge as a result of a decision to evaluate disposition alternatives for this rig. As of September 30, 2010,
we have not disposed of this rig.
In the second quarter of 2009, we recorded a $17 million charge related to our jackup, the Noble David Tinsley, which experienced a
“punch−through” while the rig was being positioned on location offshore Qatar. The incident involved the sudden penetration through the sea bottom,
which resulted in severe damage to the legs and the rig.
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Note 5 — Receivables from customers
We have an agreement with one of our customers in the U.S. Gulf of Mexico regarding outstanding receivables owed to us, which totaled
approximately $22 million at September 30, 2010. The customer has conveyed to us an overriding royalty interest (“ORRI”) as security for the
outstanding receivables and has agreed to a payment plan to repay all past due amounts. Amounts received by us pursuant to the ORRI have been and
will be applied to the customer’s payment obligations under the payment plan. We have agreed that we will not sell, assign or otherwise dispose of the
ORRI as long as the customer meets its payment obligations and complies with the terms of the agreement, which runs through June 2011. Due to the
current term of this obligation we have reclassed these amounts from “other assets” to “accounts receivable” during the third quarter. As of
September 30, 2010, the customer has continued to meet its payment obligations under the agreement. The customer has a right to reacquire the ORRI
at the end of the term of the agreement, or earlier, subject to certain conditions, which include the customer being current on all payment obligations.
In June 2010, a subsidiary of Frontier entered into a charter contract with a subsidiary of BP, PLC (“BP”) for the FPSO, Seillean, with a
term of a minimum of 100 days in connection with BP’s oil spill relief efforts in the U.S. Gulf of Mexico. The unit went on hire on July 23, 2010. In
October 2010, after the Macondo well was sealed, BP initiated an arbitration proceeding against us claiming the contract was void ab initio, or never
existed, due to a fundamental breach and demanded that we reimburse the amounts already paid to us under the charter. We believe BP owes us the
amounts due under the charter and are not aware of a basis upon which we believe BP could successfully make such a claim. The charter has a “hell or
high water” provision requiring payment, and we believe we have satisfied our obligations under the charter. Based on the available information and
the analysis we have performed to date, we have recorded the revenue under the charter, which was $19 million through the end of the third quarter
2010. In the event BP is successful in its claim, we would take a charge for revenue recorded. However, we also believe that, if BP were to be
successful in claiming the contract void ab initio, we would have an indemnity claim against the former shareholders of Frontier, and we have put
them on notice to that effect. We can make no assurances as to the outcome of this dispute.
Note 6 — Debt
Total debt consisted of the following at September 30, 2010 and December 31, 2009:

2010 2009
5.875% Senior Notes due 2013 $ 299,902 $ 299,874
7.375% Senior Notes due 2014 249,473 249,377
3.45% Senior Notes due 2015 350,000 —
7.50% Senior Notes due 2019 201,695 201,695
4.90% Senior Notes due 2020 498,645 —
6.20% Senior Notes due 2040 399,888 —
Bully 1 joint venture debt 370,000 —
Bully 2 joint venture debt 318,748 —
Bully 1 joint venture partner debt 18,000 —
Bully 2 joint venture partner debt 17,000 —
Credit Facility — —
Total Debt 2,723,351 750,946
Less: Current Maturities (52,650) —
Long−term Debt $ 2,670,701 $ 750,946
On July 26, 2010, we issued through our indirect wholly−owned subsidiary, Noble Holding International Limited, $1.25 billion aggregate
principal amount of senior notes in three separate tranches, comprising $350 million of 3.45% Senior Notes due 2015, $500 million of 4.90% Senior
Notes due 2020, and $400 million of 6.20% Senior Notes due 2040. Proceeds, net of discount and issuance costs, totaled $1.24 billion and were used
to finance a portion of the cash consideration for the Frontier acquisition. Noble−Cayman fully and unconditionally guaranteed the notes on a senior
unsecured basis. Interest on all three series of these senior notes is payable semi−annually, in arrears, on February 1 and August 1 of each year,
beginning on February 1, 2011.
As part of the Frontier acquisition, we assumed approximately $689 million in secured non−recourse debt related to consolidated joint
ventures for the Bully 1 and Bully 2 joint ventures, discussed further below.
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The Bully 1 secured non−recourse credit facility consists of a $375 million senior term loan facility, a $40 million senior revolving loan
facility and a $50 million junior term loan facility. As of September 30, 2010, loans in an aggregate principal amount of $370 million were outstanding
under the Bully 1 facility. The senior term loan facility requires 20 quarterly payments of $15.75 million each, beginning at the end of the first
complete fiscal quarter after the earlier of (i) delivery and acceptance of the Noble Bully I drillship and (ii) December 30, 2010. A one−time balloon
payment of up to $60 million is due on the date of the final quarterly payment under the senior term loan facility (the “Final Payment Date”). In
addition, all outstanding advances under the senior revolving loan facility are due in full on the Final Payment Date. The junior term loan facility
requires quarterly payments in amounts based on an excess cash flow calculation defined in the Bully 1 credit agreement, commencing in the third
complete quarter following the earlier of (i) delivery and acceptance of the Noble Bully I drillship and (ii) December 30, 2010, with final payment to be
made on the Final Payment Date. The senior term loan facility and the senior revolving loan facility provide for floating interest rates that are fixed for
one−, three− or six−month periods at LIBOR plus 2.5% prior to delivery and acceptance of the Noble Bully I drillship and LIBOR plus 1.5% thereafter
(which may be reduced to LIBOR plus 1.25% if the Noble Bully I drillship has a utilization rate of at least 95% during the first year after its
acceptance). The junior term loan facility provides for floating interest rates that are fixed for one−, three− or six−month periods at LIBOR plus 3.5%
prior to delivery and acceptance of the Noble Bully I drillship and LIBOR plus 2.5% thereafter (which may be reduced to LIBOR plus 2.25% if the
Noble Bully I drillship has a utilization rate of at least 95% during the first year after its acceptance). As noted in Note 9− “Derivative Instruments and
Hedging Activities” below, the joint venture maintains interest rate swaps, with a notional amount of $280 million, to satisfy bank covenants and to
hedge the impact of interest rate changes on interest paid. The Bully 1 credit facility is secured by assignments of the major contracts for the
construction of the Noble Bully I drillship and its equipment, the drilling contract for the drillship, and various other rights. In addition, following
completion of construction of the Noble Bully I drillship, the credit facility is required to be secured by a first−preferred ship mortgage on the drillship.
facility and a $50 million cost overrun term loan facility. As of September 30, 2010, loans in an aggregate principal amount of $319 million were
outstanding under the Bully 2 facility. The senior term loan facility requires 28 quarterly payments beginning on the earlier of (i) a specified date that
is soon after the first full fiscal quarter to occur after commencement of operations by the Noble Bully II drillship and (ii) July 15, 2011. The final
quarterly payment will be paid together with a one−time balloon payment of up to $90 million plus any amounts outstanding under the senior
revolving loan facility on the final quarterly installment payment date. The senior term loan facility and the senior revolving loan facility provide for
floating interest rates that are fixed for three months or such other period selected by the borrower and agreed by the agent (but not to exceed three
months), at LIBOR plus 2.5% prior to the occurrence of the delivery date of the hull, thereafter at LIBOR plus 2.3% until contract commencement,
thereafter at LIBOR plus 2.25% until the first day of the sixth anniversary of the contract commencement, and thereafter at LIBOR plus 2.4%. At
September 30, 2010, the applicable interest rate was LIBOR plus 2.3%. The secured cost overrun term loan has floating interest rates of LIBOR plus
3.5% prior to the occurrence of the contract commencement and LIBOR plus 3.25% thereafter. As noted in Note 9− “Derivative Instruments and
Hedging Activities” below, the joint venture maintains an interest rate swap, with a notional amount of $304 million, to satisfy bank covenants and to
construction of the Noble Bully II drillship and its equipment, the drilling contract for the drillship, and various other rights. In addition, following the
completion of construction of the Noble Bully II drillship, the credit facility is required to be secured by a first−preferred ship mortgage on the
drillship.
Certain amendments to the underlying drilling contracts and the revised vessel delivery impact to loan amortization schedules require
consent from lenders to both Bully joint ventures. Pending resolution of these issues, the Bully joint ventures are restricted from drawing down
additional funds under these facilities. We believe that we have several potential alternatives for resolving these issues, as well as sources for
additional funding of the Bully construction projects, such as the notes issued by the Bully joint ventures described below. Until we are able to
implement one of these alternatives, we and our joint venture partner will have to fund the Bully joint ventures.
In September 2010, the Bully joint ventures issued notes to the joint venture partners totaling $70 million. The interest rate on these notes
is 10%, payable semi−annually in arrears and in kind on June 30 and December 31 commencing in December 2010. The purpose of these notes is to
provide additional liquidity to these joint ventures in connection with the shipyard construction of the Bully vessels. Our portion of the joint venture
partner notes, which totaled $35 million, has been eliminated in our Consolidated Balance Sheets. The non−eliminated portions of these joint venture
partner notes totaled $18 million for Bully 1 and $17 million for Bully 2 and are due in 2016 and 2018, respectively.
In addition, we have a $600 million unsecured bank credit facility (the “Credit Facility”), which contains various covenants; including a
covenant that limits our ratio of debt to total tangible capitalization (as defined in the Credit Facility) to 0.60. As of September 30, 2010, our ratio of
debt to total tangible capitalization was 0.21.
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Fair Value of Debt
Fair value represents the amount at which an instrument could be exchanged in a current transaction between willing parties. The
estimated fair value of our senior notes was based on the quoted market prices for similar issues or on the current rates offered to us for debt of similar
remaining maturities. The following table presents the estimated fair value of our long−term debt as of September 30, 2010 and December 31, 2009.
September 30, 2010 December 31, 2009

Carrying Estimated Carrying Estimated
Value Fair Value Value Fair Value
5.875% Senior Notes due 2013 $ 299,902 $ 329,424 $ 299,874 $ 325,398
7.375% Senior Notes due 2014 249,473 288,984 249,377 282,105
3.45% Senior Notes due 2015 350,000 363,903 — —
7.50% Senior Notes due 2019 201,695 251,003 201,695 231,015
4.90% Senior Notes due 2020 498,645 539,628 — —
6.20% Senior Notes due 2040 399,888 444,121 — —
Bully 1 joint venture debt 370,000 370,000 — —
Bully 2 joint venture debt 318,748 318,748 — —
Bully 1 joint venture partner debt 18,000 18,000 — —
Bully 2 joint venture partner debt 17,000 17,000 — —
As the Bully joint venture debt bears interest at a variable rate and, the carrying value approximated fair value at the acquisition date of
Frontier, we have deemed the fair value to approximate the carrying value as of September 30, 2010. The Bully joint venture partner debt is
subordinated debt with joint venture partners and was entered into in September 2010, therefore any difference between carrying value and estimated
fair value is considered immaterial.
Note 7 — Income Taxes
At December 31, 2009, the reserves for uncertain tax positions totaled $98 million (net of related tax benefits of $7 million). At
September 30, 2010, the reserves for uncertain tax positions totaled $138 million (net of related tax benefits of $8 million). If the September 30, 2010
reserves are not realized, the provision for income taxes would be reduced by $122 million and equity would be directly increased by $16 million.
We do not anticipate that any tax contingencies resolved will have a material impact on our consolidated financial position or results of
operations in the next 12 months.
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Note 8 — Employee Benefit Plans
Pension costs include the following components:
Three Months Ended September 30,

2010 2009
Non−U.S. U.S. Non−U.S. U.S.
Service cost $ 1,045 $ 1,912 $ 770 $ 1,803
Interest cost 1,224 1,957 1,117 1,713
Return on plan assets (1,331) (2,392) (1,390) (1,786)
Amortization of prior service cost — 57 — 73
Amortization of transition obligation 17 — 19 —
Recognized net actuarial loss 181 705 66 1,031
Net pension expense $ 1,136 $ 2,239 $ 582 $ 2,834
Nine Months Ended September 30,

2010 2009
Non−U.S. U.S. Non−U.S. U.S.
Service cost $ 3,211 $ 5,736 $ 2,275 $ 5,409
Interest cost 3,694 5,871 3,202 5,139
Return on plan assets (3,999) (7,176) (3,983) (5,358)
Amortization of prior service cost — 171 — 219
Amortization of transition obligation 53 — 54 —
Recognized net actuarial loss 537 2,115 184 3,093
Net pension expense $ 3,496 $ 6,717 $ 1,732 $ 8,502
The Pension Protection Act of 2006 requires that pension plans fund towards a target of at least 100 percent with a transition through 2011
and increases the amount we are allowed to contribute to our U.S. pension plans in the near term. During the nine months ended September 30, 2010
and 2009, we made contributions to our pension plans totaling $15 million and $13 million, respectively. We expect the minimum funding to our
non−U.S. and U.S. plans in 2010, subject to applicable law, to be approximately $17 million.
We sponsor the Noble Drilling Corporation 401(k) Savings Restoration Plan (“Restoration Plan”). The Restoration Plan is a nonqualified,
unfunded employee benefit plan under which certain highly compensated employees may elect to defer compensation in excess of amounts deferrable
under our 401(k) savings plan. The Restoration Plan has no assets, and amounts withheld for the Restoration Plan are kept by us for general corporate
purposes. The investments selected by employees and the associated returns are tracked on a phantom basis. Accordingly, we have a liability to
employees for amounts originally withheld plus phantom investment income or less phantom investment losses. We are at risk for phantom investment
income and, conversely, we benefit should phantom investment losses occur. At September 30, 2010 and December 31, 2009, our liability under the
Restoration Plan totaled $6 million and $8 million, respectively. We have purchased investments that closely correlate to the investment elections
made by participants in the Restoration Plan in order to mitigate the impact of the phantom investment income and losses on our financial statements.
The value of these investments held for our benefit totaled $7 million at September 30, 2010 and $8 million at December 31, 2009.
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Note 9 — Derivative Instruments and Hedging Activities
We periodically enter into derivative instruments to manage our exposure to fluctuations in interest rates and foreign currency exchange
rates. We have documented policies and procedures to monitor and control the use of derivative instruments. We do not engage in derivative
transactions for speculative or trading purposes, nor were we a party to leveraged derivatives. As a result of the Frontier acquisition, discussed in Note
2, we maintain certain foreign exchange forward contracts that do not qualify under the Financial Accounting Standards Board (“FASB”) standards for
hedge accounting treatment and therefore, changes in fair values are recognized as either income or loss in our consolidated income statement. These
contracts are discussed further below.
For foreign currency forward contracts, hedge effectiveness is evaluated at inception based on the matching of critical terms between
derivative contracts and the hedged item. For interest rate swaps, we evaluate all material terms between the swap and the underlying debt obligation,
known in FASB standards as the “long−haul method”. Any change in fair value resulting from ineffectiveness is recognized immediately in earnings.
We recognized a loss of $0.3 million in other income due to interest rate swap hedge ineffectiveness during the three and nine months ended
September 30, 2010. No income or loss was recognized during 2009 due to hedge ineffectiveness.
Cash Flow Hedges
Our North Sea and Brazil operations have a significant amount of their cash operating expenses payable in local currencies. To limit the
potential risk of currency fluctuation, we typically maintain short−term forward contracts settling monthly in their respective local currencies to
mitigate exchange exposure. The forward contract settlements in the remainder of 2010 represent approximately 49 percent of these forecasted local
currency requirements. The notional amount of the forward contracts outstanding, expressed in U.S. Dollars, was approximately $82 million at
September 30, 2010. Total unrealized gains related to these forward contracts were $2 million as of September 30, 2010 and were recorded as part of
“Accumulated other comprehensive loss”.
As part of the Frontier acquisition discussed in Note 2, we acquired an interest in two joint ventures with an unaffiliated third party. These
joint ventures maintain interest rate swaps which are classified as cash flow hedges. The interest rate swaps relate to debt for the construction of the
two Bully−class rigs undertaken by the two joint ventures, and the hedges are designed to fix the cash paid for interest on these projects. The purpose
of these hedges is to satisfy bank covenants and to limit exposure to changes in interest rates. There are no credit risk related contingency features
embedded in these swap agreements. The aggregate notional amounts of the interest rate swaps totaled $584 million as of September 30, 2010. The
notional amounts and settlement dates for the Bully 1 interest rate swaps include $37 million settling in December 2010 and $243 million settling
quarterly, with the final amounts settling in December 2014. The notional amount and settlement dates for the Bully 2 interest rate swap is $304
million settling quarterly, with the final amount settling in January 2018. The carrying amount of these interest rate swaps was $39 million which
includes $31 million included in liabilities as part of the purchase price allocation for the Frontier acquisition and $8 million of unrealized losses
included in “Accumulated other comprehensive loss (“AOCL”)” at September 30, 2010. For the three and nine months ended September 30, 2010,
$0.3 million was recognized in the income statement for the ineffective portion of our interest rate swaps. As of September 30, 2010, we do not expect
to reclassify material amounts from “Accumulated other comprehensive loss” to “other income” within the next twelve months.
The balance of the net unrealized gain/(loss) related to our cash flow hedges included in AOCL and related activity is as follows:

2010 2009 2010 2009
Net unrealized gain at beginning of period $ (2,517) $ 2,852 $ 417 $ —

Activity during period:
Settlement of foreign currency forward contracts during the
period 1,395 (1,301) (417) —
Net unrealized gain/(loss) on outstanding foreign currency
forward contracts 3,367 (144) 2,245 1,407
Net unrealized gain/(loss) on outstanding interest rate swaps (7,586) — (7,586) —
Net unrealized gain/(loss) at end of period $ (5,341) $ 1,407 $ (5,341) $ 1,407
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Fair Value Hedges
During 2008, we entered into a firm commitment for the construction of the Noble Globetrotter I drillship. The drillship will be
constructed in two phases, with the second phase being installation and commissioning of the topside equipment. The contract for this second phase of
construction is denominated in Euros, and in order to mitigate the risk of fluctuations in foreign currency exchange rates, we entered into forward
contracts to purchase Euros. As of September 30, 2010, the aggregate notional amount of the forward contracts was 30 million Euros. Each forward
contract settles in connection with required payments under the construction contract. We are accounting for these forward contracts as fair value
hedges. The fair market value of these derivative instruments is included in “Other current assets/liabilities” or “Other assets/liabilities,” depending on
when the forward contract is expected to be settled. Gains and losses from these fair value hedges would be recognized in earnings currently along
with the change in fair value of the hedged item attributable to the risk being hedged, if any portion was found to be ineffective. The fair market value
of these outstanding forward contracts, which are included in “Other current assets/liabilities” and “Other assets/liabilities,” totaled approximately $3
million at September 30, 2010 and $0.8 million at December 31, 2009. No amounts related to fair value hedges were recognized in the income
statement for the three or nine months ended September 30, 2010 and 2009.
Foreign Exchange Forward Contracts
As part of the Frontier acquisition, we acquired an interest in two joint ventures with an unaffiliated third party. These joint ventures
maintain foreign exchange forward contracts to help mitigate the risk of currency fluctuation of the Singapore dollar for the construction of the Bully
vessels taking place in a Singapore shipyard. The notional amount on these contracts totaled approximately $57 million as of September 30, 2010.
These contracts were not designated for hedge accounting treatment under FASB standards and therefore changes in fair values are recognized as
either income or loss in our consolidated income statement. These contracts are referred to as non−designated derivatives in the tables to follow. For
the three and nine months ended September 30, 2010, we have recognized a gain of $1 million related to these foreign exchange forward contracts.
Financial Statement Presentation
The following tables, together with Note 10, summarize the financial statement presentation and fair value of our derivative positions as of
September 30, 2010 and December 31, 2009:
Estimated fair value

Balance sheet September 30, December 31,
classification 2010 2009
Asset derivatives
Cash flow hedges
Short−term foreign currency forward contracts Other current assets $ 2,681 $ 654
Non−designated derivatives
Short−term foreign currency forward contracts Other current assets 2,905 —
Liability derivatives
Fair value hedges
Short−term foreign currency forward contracts Other current liabilities $ 2,543 $ 301
Long−term foreign currency forward contracts Other liabilities — 464
Cash flow hedges

Short−term foreign currency forward contracts Other current liabilities 436 237
Short−term interest rate swaps Other current liabilities 16,045 —
Long−term interest rate swaps Other liabilities 22,789 —
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To supplement the fair value disclosures in Note 10, the following summarizes the recognized gains and losses of cash flow hedges and
non−designated derivatives through AOCL or through “other income” for the three months ended September 30, 2010 and 2009:
Gain/(loss) reclassified
Gain/(loss) recognized from AOCL to “other Gain/(loss) recognized
through AOCL income” through “other income”
2010 2009 2010 2009 2010 2009
Cash flow hedges

Foreign currency forward contracts $ 4,762 $ (1,445) $ — $ — $ — $ —
Interest rate swaps (7,586) — — — (261) —
Foreign currency forward contracts $ — $ — $ — $ — $ 1,234 $ —
The following summarizes the recognized gains and losses of cash flow hedges and non−designated derivatives through AOCL or through
“other income” for the nine months ended September 30, 2010 and 2009:
Gain/(loss) reclassified
Gain/(loss) recognized from AOCL to “other Gain/(loss) recognized
through AOCL income” through “other income”
2010 2009 2010 2009 2010 2009
Cash flow hedges
Foreign currency forward contracts $ 1,828 $ 1,407 $ — $ — $ — $ —
Interest rate swaps (7,586) — — — (261) —
Foreign currency forward contracts $ — $ — $ — $ — $ 1,234 $ —
For cash flow presentation purposes, a total use of cash of $2 million was recognized through the financing section related to interest rate
swaps, all other amounts are recognized through changes in operating activities and are recognized through changes in other assets and liabilities.
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Note 10 — Fair Value of Financial Instruments
The following table presents the carrying amount and estimated fair value of our financial instruments recognized at fair value on a
recurring basis:
September 30, 2010 December 31, 2009

Estimated Fair Value Measurements
Quoted Significant
Prices in Other Significant
Active Observable Unobservable
Carrying Markets Inputs Inputs Carrying Estimated
Amount (Level 1) (Level 2) (Level 3) Amount Fair Value
Assets —
Marketable securities $ 6,508 $ 6,508 $ — $ — $ 8,483 $ 8,483
Foreign currency forward contracts 5,586 — 5,586 — 654 654
Firm commitment 2,543 — 2,543 — 765 765
Liabilities —
Interest rate swaps $ 38,834 $ — $ 38,834 $ — $ — $ —
Foreign currency forward contracts 2,979 — 2,979 — 1,002 1,002
The derivative instruments have been valued using actively quoted prices and quotes obtained from the counterparties to the derivative
instruments. Our cash and cash equivalents, accounts receivable and accounts payable are by their nature short−term. As a result, the carrying values
included in the accompanying Consolidated Balance Sheets approximate fair value.
Note 11 — Commitments and Contingencies
Noble Asset Company Limited (“NACL”), our wholly−owned, indirect subsidiary, was named one of 21 parties served a Show Cause
Notice (“SCN”) issued by the Commissioner of Customs (Prev.), Mumbai, India (the “Commissioner”) in August 2003. The SCN concerned alleged
violations of Indian customs laws and regulations regarding one of our jackups. The Commissioner alleged certain violations to have occurred before,
at the time of, and after NACL acquired the rig from the rig’s previous owner. In the purchase agreement for the rig, NACL received contractual
indemnification against liability for Indian customs duty from the rig’s previous owner. In connection with the export of the rig from India in 2001,
NACL posted a bank guarantee in the amount of 150 million Indian Rupees (or $3 million at September 30, 2010) and a customs bond in the amount
of 970 million Indian Rupees (or $22 million at September 30, 2010), both of which remain in place. In March 2005, the Commissioner passed an
order against NACL and the other parties cited in the SCN seeking (i) to invoke the bank guarantee posted on behalf of NACL as a fine, (ii) to demand
duty of (a) $19 million plus interest related to a 1997 alleged import and (b) $22 million plus interest related to a 1999 alleged import, provided that
the duty and interest demanded in (b) would not be payable if the duty and interest demanded in (a) were paid by NACL, and (iii) to assess a penalty of
$500,000 against NACL. NACL appealed the order of the Commissioner to the Customs, Excise & Service Tax Appellate Tribunal (“CESTAT”). In
2006, CESTAT upheld NACL’s appeal and overturned the Commissioner’s March 2005 order against NACL in its entirety. The Commissioner filed
an appeal in the Bombay High Court, which dismissed the appeal. In 2008, the Commissioner appealed to the Supreme Court of India, appealing the
order of the Bombay High Court. NACL is opposing admission of the Appeal in the Supreme Court of India, and is seeking the return or cancellation
of its previously posted custom bond and bank guarantee. NACL continues to pursue contractual indemnification against liability for Indian customs
duty and related costs and expenses against the rig’s previous owner in arbitration proceedings in London, which proceedings the parties have
temporarily stayed pending further developments in the Indian proceeding. We do not believe the ultimate resolution of this matter will have a material
adverse effect on our financial position, results of operations or cash flows.
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In May 2010, Anadarko Petroleum Corporation (“Anadarko”) sent a letter asserting that the initial attempted deepwater drilling
moratorium in the U.S. Gulf of Mexico, issued on May 28, 2010 by U.S. Secretary of the Interior Ken Salazar, was an event of force majeure under the
drilling contract for the Noble Amos Runner. In June 2010, Anadarko filed a declaratory judgment action in Federal District Court in Houston, Texas
seeking to have the court declare that a force majeure condition had occurred and that the drilling contract was terminated by virtue of the initial
proclaimed moratorium. We disagree that a force majeure event occurred and that Anadarko had the right to terminate the contract. In August 2010,
we filed a counterclaim seeking damages from Anadarko for breach of contract. We do not believe the ultimate resolution of this matter will have a
material adverse effect on our financial position, results of operations or cash flows. Due to the uncertainties noted above, we have not recognized any
revenue under the disputed portion of this contract.
The Noble Homer Ferrington is under contract with a subsidiary of ExxonMobil Corporation (“ExxonMobil”), who entered into an
assignment agreement with BP for a two well farmout of the rig in Libya after successfully drilling two wells with the rig for Exxon Mobil. In August
2010, BP attempted to terminate the assignment agreement claiming that the rig was not in the required condition. ExxonMobil has informed us that
we must look to BP for payment of the dayrate during the assignment period. In August 2010, we initiated arbitration proceedings under the drilling
contract against both BP and ExxonMobil. We do not believe BP had the right to terminate the assignment agreement and believe the rig continues to
be fully ready to operate under the drilling contract. We believe we are owed dayrate by either or both of these clients. The operating dayrate was
approximately $538,000 per day for the work in Libya. We are proceeding with the arbitration process and intend to vigorously pursue these claims.
Due to the uncertainties noted above, we have not recognized any revenue during the assignment period. We do not believe the ultimate resolution of
these matters will have a material adverse effect on our financial position. The matter could have a material effect on our results of operations or cash
flows in the period incurred given the amount in dispute.
We are from time to time a party to various lawsuits that are incidental to our operations in which the claimants seek an unspecified
amount of monetary damages for personal injury, including injuries purportedly resulting from exposure to asbestos on drilling rigs and associated
facilities. At September 30, 2010, there were approximately 38 of these lawsuits in which we are one of many defendants. These lawsuits have been
filed in the United States in the states of Louisiana, Mississippi and Texas. We intend to defend vigorously against the litigation. We do not believe the
ultimate resolution of these matters will have a material adverse effect on our financial position, results of operations or cash flows.
We are a defendant in certain claims and litigation arising out of operations in the ordinary course of business, including certain disputes
with customers over receivables discussed in Note 5, the resolution of which, in the opinion of management, will not be material to our financial
position, results of operations or cash flows. There is inherent risk in any litigation or dispute and no assurance can be given as to the outcome of these
claims.
During the fourth quarter of 2007, our Nigerian subsidiary received letters from the Nigerian Maritime Administration and Safety Agency
(“NIMASA”) seeking to collect a two percent surcharge on contract amounts under contracts performed by “vessels,” within the meaning of Nigeria’s
cabotage laws, engaged in the Nigerian coastal shipping trade. Although we do not believe that these laws apply to our ownership of drilling units,
NIMASA is seeking to apply a provision of the Nigerian cabotage laws (which became effective on May 1, 2004) to our offshore drilling units by
considering these units to be “vessels” within the meaning of those laws and therefore subject to the surcharge, which is imposed only upon “vessels.”
Our offshore drilling units are not engaged in the Nigerian coastal shipping trade and are not in our view “vessels” within the meaning of Nigeria’s
cabotage laws. In January 2008, we filed an originating summons against NIMASA and the Minister of Transportation in the Federal High Court of
Lagos, Nigeria seeking, among other things, a declaration that our drilling operations do not constitute “coastal trade” or “cabotage” within the
meaning of Nigeria’s cabotage laws and that our offshore drilling units are not “vessels” within the meaning of those laws. In February 2009,
NIMASA filed suit against us in the Federal High Court of Nigeria seeking collection of the cabotage surcharge. In August 2009, the court issued a
favorable ruling in response to our originating summons stating that drilling operations do not fall within the cabotage laws and that drilling rigs are
not vessels for purposes of those laws. The court also issued an injunction against the defendants prohibiting their interference with our drilling rigs or
drilling operations. NIMASA has appealed the court’s ruling, although the court dismissed NIMASA’s lawsuit filed against us in February 2009. We
intend to take all further appropriate legal action to resist the application of Nigeria’s cabotage laws to our drilling units. The outcome of any such
legal action and the extent to which we may ultimately be responsible for the surcharge is uncertain. If it is ultimately determined that offshore drilling
units constitute vessels within the meaning of the Nigerian cabotage laws, we may be required to pay the surcharge and comply with other aspects of
the Nigerian cabotage laws, which could adversely affect our operations in Nigerian waters and require us to incur additional costs of compliance.
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NIMASA had also informed the Nigerian Content Division of its position that we are not in compliance with the cabotage laws. The
Nigerian Content Division makes determinations of companies’ compliance with applicable local content regulations for purposes of government
contracting, including contracting for services in connection with oil and gas concessions where the Nigerian national oil company is a partner. The
Nigerian Content Division had originally barred us from participating in new tenders as a result of NIMASA’s allegations, although the Division
reversed its actions based on the favorable Federal High Court ruling. However, no assurance can be given with respect to our ability to bid for future
work in Nigeria until our dispute with NIMASA is resolved.
We operate in a number of countries throughout the world and our income tax returns filed in those jurisdictions are subject to review and
examination by tax authorities within those jurisdictions. We have been informed by the U.S. Internal Revenue Service that our 2008 tax return is
currently under audit. In addition, a U.S. subsidiary of Frontier is also under audit for its 2007 and 2008 tax returns. Furthermore, we are currently
contesting several non−U.S. tax assessments and may contest future assessments when we believe the assessments are in error. We cannot predict or
provide assurance as to the ultimate outcome of the existing or future assessments. We believe the ultimate resolution of the outstanding assessments,
for which we have not made any accrual, will not have a material adverse effect on our consolidated financial statements. We recognize uncertain tax
positions that we believe have a greater than 50 percent likelihood of being sustained.
Certain of our non−U.S. income tax returns have been examined for the 2002 through 2008 periods and audit claims have been assessed
for approximately $299 million (including interest and penalties), primarily in Mexico. We do not believe we owe these amounts and are defending
our position. However, we expect increased audit activity in Mexico and anticipate the tax authorities will issue additional assessments and continue to
pursue legal actions for all audit claims. We believe additional audit claims in the range of $21 to $23 million attributable to other business tax returns
may be assessed against us. We have contested, or intend to contest, the audit findings, including through litigation if necessary, and we do not believe
that there is greater than 50 percent likelihood that additional taxes will be incurred. Accordingly, no accrual has been made for such amounts.
We maintain certain insurance coverage against specified marine perils, including liability for physical damage to our drilling rigs, and
loss of hire on certain of our rigs. The damage caused in 2005 and 2008 by Hurricanes Katrina, Rita and Ike to oil and gas assets situated in the U.S.
Gulf of Mexico negatively impacted the energy insurance market, resulting in more restricted and more expensive coverage. We also cannot predict
what the impact of the recent events in the U.S. Gulf of Mexico will have on the cost or availability of future insurance coverage. We evaluate and
renew our operational insurance policies on a yearly basis during the month of March.
We have elected to self insure U.S. named windstorm physical damage and loss of hire exposures due to the high cost of coverage for
these perils. This self insurance applies only to our units in the U.S. portion of the Gulf of Mexico. Our rigs located in the Mexican portion of the Gulf
of Mexico remain covered by commercial insurance for windstorm damage. In addition, we maintain physical damage deductibles of $25 million per
occurrence for rigs located in the U.S., Mexico, Brazil, Southeast Asia and the North Sea and $15 million per occurrence for rigs operating in West
Africa, the Middle East, India, and the Mediterranean Sea. The loss of hire coverage applies only to our rigs operating under contract with a dayrate
equal to or greater than $200,000 a day and is subject to a 45−day waiting period for each unit and each occurrence.
Although we maintain insurance in the geographic areas in which we operate, pollution, reservoir damage and environmental risks
generally are not fully insurable. Our insurance policies and contractual rights to indemnity may not adequately cover our losses or may have
exclusions of coverage for some losses. We do not have insurance coverage or rights to indemnity for all risks, including loss of hire insurance on most
of the rigs in our fleet. Uninsured exposures may include war risk, activities prohibited by U.S. laws and regulations, radiation hazards, certain loss or
damage to property on board our rigs and losses relating to terrorist acts or strikes. If a significant accident or other event occurs and is not fully
covered by insurance or contractual indemnity, it could adversely affect our financial position, results of operations or cash flows. There can be no
assurance that those parties with contractual obligations to indemnify us will necessarily be financially able to indemnify us against all these risks.
We carry protection and indemnity insurance covering marine third party liability exposures, which also includes coverage for employer’s
liability resulting from personal injury to our offshore drilling crews. Our protection and indemnity policy currently has a standard deductible of
$10 million per occurrence, with maximum liability coverage of $750 million.
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In connection with our capital expenditure program, we had outstanding commitments, including shipyard and purchase commitments of
approximately $1.4 billion at September 30, 2010.
We have entered into agreements with certain of our executive officers, as well as certain other employees. These agreements become
effective upon a change of control of Noble−Swiss (within the meaning set forth in the agreements) or a termination of employment in connection with
or in anticipation of a change of control, and remain effective for three years thereafter. These agreements provide for compensation and certain other
benefits under such circumstances.
Internal Investigation
In 2007, we began, and voluntarily contacted the SEC and the U.S. Department of Justice (“DOJ”) to advise them of, an internal
investigation of the legality under the United States Foreign Corrupt Practices Act (“FCPA”) and local laws of certain reimbursement payments made
by our Nigerian affiliate to customs agents in Nigeria. In November 2010, we finalized settlements of this matter with each of the SEC and the DOJ. In
order to resolve the DOJ investigation, we entered into a non−prosecution agreement with the DOJ, which provides for the payment of a fine of $2.6
million, as well as certain undertakings, including continued cooperation with the DOJ, compliance with the FCPA, certain self−reporting and annual
reporting obligations and certain restrictions on our public discussion regarding the agreement. The agreement does not require that we install a
monitor to oversee our activities and compliance with laws. In order to resolve the SEC investigation, we agreed to the entry of a civil judgment
against us for violations of the FCPA. Pursuant to the agreed judgment, we agreed to disgorge profits of $4.3 million, pay prejudgment interest of $1.3
million and refrain from denying the allegations contained in the SEC’s petition, except in other litigation to which the SEC is not a party. We also
agreed to an injunction restraining us from violating the anti−bribery, books and records, and internal controls provisions of the FCPA, and we waived
a variety of litigation rights with respect to the conduct at issue. The agreed judgment does not require a monitor.
In connection with the internal investigation, we had already enhanced our compliance program and efforts and we will continue to
emphasize the importance of compliance and ethical business conduct. Though the settlements described above conclude the investigations of the SEC
and the DOJ, we could be investigated by relevant foreign jurisdictions, and we could face fines or other sanctions in those jurisdictions. Any sanctions
and other costs we may incur as a result of any such investigation, or any future alleged violations of the FCPA or similar laws could have a material
adverse effect on our business or financial condition and could damage our reputation and ability to do business, to attract and retain employees and to
access capital markets.
We are currently operating three jackup rigs offshore Nigeria. The temporary import permits covering two of these rigs expired in
November 2008 and we have pending applications to renew these permits. We have received notice that we will be allowed to obtain a new temporary
import permit for one of the two rigs and are in the process of clarifying this approval. However, as of October 31, 2010, the Nigerian customs office
had not acted on our application for the second unpermitted rig, but we are discussing undertaking the same process as for the first rig. We did obtain a
new temporary import permit for the third rig in 2009 that had previously been operating with an expired temporary import permit, while the
application was pending, by exporting and re−importing the rig. We continue to seek to avoid material disruption to our Nigerian operations; however,
there can be no assurance that we will be able to obtain new permits or further extensions of permits necessary to continue the operation of our rigs in
Nigeria. If we cannot obtain a new permit or an extension necessary to continue operations of any rig, we may need to cease operations under the
drilling contract for such rig and relocate such rig from Nigerian waters. In any case, we also could be subject to actions by Nigerian customs for
import duties and fines for these two rigs, as well as other drilling rigs that operated in Nigeria in the past. We cannot predict what impact these events
may have on any such contract or our business in Nigeria. Furthermore, we cannot predict what changes, if any, relating to temporary import permit
policies and procedures may be established or implemented in Nigeria in the future, or how any such changes may impact our business there.
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Note 12 — Segment and Related Information
We report our contract drilling operations as a single reportable segment: Contract Drilling Services. The consolidation of our contract
drilling operations into one reportable segment is attributable to how we manage our business, and the fact that all of our drilling fleet is dependent
upon the worldwide oil and gas industry. The mobile offshore drilling units comprising our offshore rig fleet operate in a single, global market for
contract drilling services and are often redeployed globally due to changing demands of our customers, which consist largely of major non−U.S. and
government owned/controlled oil and gas companies throughout the world. Our contract drilling services segment currently conducts contract drilling
operations principally in the Middle East, India, the U.S. Gulf of Mexico, Mexico, the Mediterranean, the North Sea, Brazil, West Africa and the Asian
Pacific.
We evaluate the performance of our operating segment primarily based on operating revenues and net income. Summarized financial
information of our reportable segments for the three and nine months ended September 30, 2010 and 2009 is shown in the following table. The
“Other” column includes results of labor contract drilling services and corporate related items.
Three Months Ended September 30,

2010 2009
Contract Contract
Drilling Drilling
Services Other Total Services Other Total
Revenues from external customers $ 604,042 $ 8,576 $ 612,618 $ 896,989 $ 8,646 $ 905,635
Depreciation and amortization 140,199 3,083 143,282 100,669 2,576 103,245
Segment operating income/ (loss) 109,083 (726) 108,357 503,962 451 504,413
Interest expense, net of amount capitalized 125 4,019 4,144 166 213 379
Income tax provision/ (benefit) 20,876 (589) 20,287 80,374 182 80,556
Segment profit/ (loss) 89,001 (2,981) 86,020 425,120 963 426,083
Total assets (at end of period) 9,625,999 1,380,425 11,006,424 7,307,345 782,030 8,089,375
Capital expenditures 352,347 2,345 354,692 356,447 10,737 367,184
Nine Months Ended September 30,

2010 2009
Contract Contract
Drilling Drilling
Services Other Total Services Other Total
Revenues from external customers $2,137,304 $ 26,087 $ 2,163,391 $2,676,583 $ 24,075 $2,700,658
Depreciation and amortization 376,754 8,612 385,366 288,519 7,127 295,646
Segment operating income/ (loss) 801,966 (2,101) 799,865 1,503,398 928 1,504,326
Interest expense, net of amount capitalized 418 4,701 5,119 516 745 1,261
Income tax provision/ (benefit) 128,012 (1,211) 126,801 275,418 415 275,833
Segment profit/ (loss) 680,302 (5,631) 674,671 1,230,303 1,924 1,232,227
Total assets (at end of period) 9,625,999 1,380,425 11,006,424 7,307,345 782,030 8,089,375
Capital expenditures 869,435 16,658 886,093 850,575 42,169 892,744
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Note 13 — Accounting Pronouncements
In June 2009, the FASB issued guidance which expanded disclosures that a reporting entity provides about transfers of financial assets and
its effect on the financial statements. This guidance is effective for annual and interim reporting periods beginning after November 15, 2009. The
adoption of this guidance did not have a material impact on our financial condition or results of operations or financial disclosures.
Also in June 2009, the FASB issued guidance that revises how an entity evaluates variable interest entities. This guidance is effective for
annual and interim reporting periods beginning after November 15, 2009. The adoption of this guidance did not have a material impact on our financial
condition or results of operations and cash flows.
In October 2009, the FASB issued guidance that impacts the recognition of revenue in multiple−deliverable arrangements. The guidance
establishes a selling−price hierarchy for determining the selling price of a deliverable. The goal of this guidance is to clarify disclosures related to
multiple−deliverable arrangements and to align the accounting with the underlying economics of the multiple−deliverable transaction. This guidance is
effective for fiscal years beginning on or after June 15, 2010. We are in the process of evaluating this guidance but do not believe this guidance will
have a material impact on our financial condition or results of operations and cash flows.
In January 2010, the FASB issued guidance relating to the disclosure of the fair value of assets. This guidance calls for additional
information to be given regarding the transfer of items in and out of respective categories. In addition, it requires additional disclosures regarding the
purchase, sales, issuances, and settlements of assets that are classified as level three within the FASB fair value hierarchy. This guidance is generally
effective for annual and interim periods ending after December 15, 2009. However, the disclosures about purchases, sales, issuances and settlements in
the roll−forward activity in Level 3 fair value measurements is deferred until fiscal years beginning after December 15, 2010. These additional
disclosures did not have and are not expected to have a significant impact on our financial disclosures or our financial condition.
In February 2010, the FASB issued guidance that clarifies the disclosure of subsequent events for SEC registrants. Under this guidance an
SEC registrant can disclose the company has considered subsequent events through the date of filing with the SEC as opposed to specifically stating
the date to which subsequent events were considered. This guidance is effective upon the issuance of the guidance. Our adoption of this guidance did
not have a material impact on our financial disclosures or financial condition.
In April 2010, the FASB issued guidance that codifies the need for disclosure relating to the disallowance of various credits as a result of
the passage of both the Health Care and Education Reconciliation Act of 2010 and the Patient Protection and Affordable Care Act, which were signed
into law in March 2010. The passage of these acts does not have an impact on our tax liability, our related financial disclosures, or our financial
condition.
Note 14 — Guarantees of Registered Securities
Noble−Cayman and Noble Holding (U.S.) Corporation (“NHC”), each a wholly−owned subsidiary of Noble−Swiss, are full and
unconditional guarantors of Noble Drilling Corporation’s (“NDC”) 7.50% Senior Notes due 2019 which had an outstanding principal balance at
September 30, 2010 of $202 million. NDC is an indirect, wholly−owned subsidiary of Noble−Swiss and a direct, wholly−owned subsidiary of NHC.
In December 2005, Noble Drilling Holding LLC (“NDH”), an indirect wholly−owned subsidiary of Noble−Swiss, became a co−obligor on (and
effectively a guarantor of) the 7.50% Senior Notes.
In connection with our worldwide internal restructuring completed during 2009, prior to September 30, 2009, Noble Drilling Services 1
LLC (“NDS1”), an indirect wholly−owned subsidiary of Noble−Swiss, became a co−issuer of the 7.50% Senior Notes. Subsequent to September 30,
2009, NDS1 merged with Noble Drilling Services 6 LLC (“NDS6”), also an indirect wholly−owned subsidiary of Noble−Swiss, as part of the internal
restructuring. NDS6 was the surviving company in this merger and assumed NDS1’s obligations under, and became a co−issuer of, the 7.50% Senior
Notes.
In connection with the issuance of Noble−Cayman’s 5.875% Senior Notes due 2013, NDC guaranteed the payment of the 5.875% Senior
Notes. In connection with the worldwide internal restructuring, Noble Holding International Limited (“NHIL”), an indirect wholly−owned subsidiary
of Noble−Cayman and Noble−Swiss, also guaranteed the payment of the 5.875% Senior Notes. NDC’s and NHIL’s guarantees of the 5.875% Senior
Notes are full and unconditional. The outstanding principal balance of the 5.875% Senior Notes at September 30, 2010 was $300 million.
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In November 2008, NHIL issued $250 million principal amount of 7.375% Senior Notes due 2014, which are fully and unconditionally
guaranteed by Noble−Cayman. The outstanding principal balance of the 7.375% Senior Notes at September 30, 2010 was $249 million.
In connection with the Frontier acquisition, in July 2010, NHIL issued a total of $1.25 billion principal amount of senior notes in three
separate tranches, comprising $350 million of 3.45% Senior Notes due 2015, $500 million of 4.90% Senior Notes due 2020 and $400 million of 6.20%
Senior Notes due 2040. Noble−Cayman fully and unconditionally guaranteed the notes on a senior unsecured basis. The aggregate principal balance of
these three tranches of senior notes at September 30, 2010 was $1.25 billion.
The following consolidating financial statements of Noble−Cayman, NHC and NDH combined, NDC, NHIL, NDS6 and all other
subsidiaries present investments in both consolidated and unconsolidated affiliates using the equity method of accounting.
Consistent with our report on Form 10−Q for the quarter ended June 30, 2010, the condensed consolidating balance sheet as of
December 31, 2009 has been revised to increase investment in affiliates and notes payable to affiliates of NHIL by approximately $550 million,
resulting from non−cash intercompany transactions. Additionally, as part of these transactions, the investment in affiliates as presented in the NHC and
NDH combined column has increased approximately $405 million as of December 31, 2009. The increase is offset by an increase in accounts payable
to affiliates of approximately $1.2 billion and a reduction in shareholders’ equity of approximately $843 million. As a result, corresponding changes
have been made to notes receivable from affiliates, accounts payable to affiliates and shareholders’ equity as of December 31, 2009 in the “Other
Non−guarantor Subsidiaries of Noble” columns. Offsetting revisions were made to the eliminations column. These revisions had no impact on
Noble−Cayman or the consolidated balances presented in the condensed consolidating balance sheet as of December 31, 2009. Additionally, there was
no impact to the statements of operations or cash flows for any periods presented from these non−cash intercompany transactions.
As of January 1, 2010, certain notes issued by Noble−Cayman and NDC each had less than 300 record holders and the duties of NHC,
NDH, NDC and NDS6 to file reports under the Securities Exchange Act of 1934 were suspended, and consolidating financial statements in the Form
10−Q for the period ended March 31, 2010 only included columns for Noble−Cayman, NHIL and all other subsidiaries of Noble. Although the
reporting requirements for NHC, NDH, NDC and NDS6 were suspended, the staff of the Securities and Exchange Commission has stated that, as a
condition to the use of the Rule 12h−5 exemption by subsidiary issuers and guarantors (which permits condensed consolidating financial information
in lieu of full financials for such subsidiaries), they expect parent companies to continue to include condensed consolidating financial information
relating to their issuer and guarantor subsidiaries as long as the subsidiaries’ debt is outstanding. Therefore, we are including consolidating financial
statements as of March 31, 2010 in conformity with our current presentation.
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CONDENSED CONSOLIDATING BALANCE SHEET
September 30, 2010
(in thousands)
Other
Non−guarantor
Noble− NHC and NDH Subsidiaries Consolidating
Cayman Combined NDC NHIL NDS6 of Noble Adjustments Total
ASSETS
Current assets
Cash and cash
equivalents $ 41 $ 234 $ — $ — $ — $ 344,140 $ — $ 344,415
Accounts receivable — 7,439 5,168 — — 474,415 — 487,022
Accounts receivable
from affiliates 1,006,622 74,207 788,299 262,488 19,392 3,729,122 (5,282,108) 598,022
Short−term notes
receivable from
affiliates — 119,476 — — — 75,000 (194,476) —
Prepaid expenses and
other current assets — 18,092 738 — — 111,958 — 130,788
Total current assets 1,006,663 219,448 794,205 262,488 19,392 4,734,635 (5,476,584) 1,560,247

Drilling equipment,
facilities and other — 1,026,300 70,909 — — 11,022,659 — 12,119,868
Accumulated depreciation — (144,849) (49,552) — — (2,273,874) — (2,468,275)
Total property and

equipment, net — 881,451 21,357 — — 8,748,785 — 9,651,593
Notes receivable from

affiliates 3,507,062 675,000 — 1,239,600 479,107 2,423,400 (8,324,169) —
Investments in affiliates 6,698,100 9,123,159 3,627,816 5,346,268 1,765,160 — (26,560,503) —
Other assets 2,088 7,033 2,219 11,710 1,031 314,741 — 338,822
Total assets $ 11,213,913 $ 10,906,091 $ 4,445,597 $ 6,860,066 $ 2,264,690 $ 16,221,561 $ (40,361,256) $ 11,550,662
LIABILITIES AND
EQUITY
Current liabilities
Current maturities of
long−term debt $ — $ — $ — $ — $ — $ 52,650 $ — $ 52,650
Short−term notes
payables from
affiliates 25,000 50,000 — — — 119,476 (194,476) —
Accounts payable and
accrued liabilities 5,875 11,224 8,844 12,020 630 469,139 — 507,732
Accounts payable to
affiliates 1,379,435 2,529,525 115,898 54,349 13,475 1,189,426 (5,282,108) —
Total current
liabilities 1,410,310 2,590,749 124,742 66,369 14,105 1,830,691 (5,476,584) 560,382
Long−term debt 299,902 — — 1,498,006 201,695 671,098 — 2,670,701

Notes payable to affiliates 1,834,500 1,022,500 120,000 550,000 811,000 3,986,169 (8,324,169) —
Other liabilities 19,929 47,849 25,329 — — 452,105 — 545,212
Total liabilities 3,564,641 3,661,098 270,071 2,114,375 1,026,800 6,940,063 (13,800,753) 3,776,295
Commitments and
contingencies
Total equity 7,649,272 7,244,993 4,175,526 4,745,691 1,237,890 9,281,498 (26,560,503) 7,774,367
Total liabilities and

equity $ 11,213,913 $ 10,906,091 $ 4,445,597 $ 6,860,066 $ 2,264,690 $ 16,221,561 $ (40,361,256) $ 11,550,662
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December 31, 2009
(in thousands)
Other
Non−guarantor
ASSETS
Current assets
Cash and cash equivalents $ 3 $ 268 $ — $ — $ — $ 725,954 $ — $ 726,225
Accounts receivable — 7,509 — — — 639,945 — 647,454
Accounts receivable from affiliates 102,507 80,316 573,238 251,232 2,663 2,885,944 (3,704,896) 191,004
Short−term notes receivable from affiliates — 168,681 — — — — (168,681) —
Prepaid expenses and other current assets — 13,221 — — — 85,985 — 99,206
Total current assets 102,510 269,995 573,238 251,232 2,663 4,337,828 (3,873,577) 1,663,889

Drilling equipment, facilities and other — 1,419,193 69,601 — — 7,293,370 — 8,782,164
Total property and equipment, net — 1,298,331 22,016 — — 5,286,042 — 6,606,389
Notes receivable from affiliates 3,507,062 — — — 479,107 1,964,821 (5,950,990) —

Other assets 2,735 8,227 772 1,744 1,122 264,539 — 279,139
Total assets $ 7,870,442 $ 10,000,071 $ 4,305,649 $ 4,831,114 $ 1,886,697 $ 11,853,230 $ (32,197,786) $ 8,549,417

Current liabilities
Current maturities of long−term debt $ — $ — $ — $ — $ — $ — $ — $ —
Short−term notes payables from affiliates — — — — — 168,681 (168,681) —
Accounts payable and accrued liabilities 1,468 10,815 9,067 5,382 4,412 394,763 — 425,907
Accounts payable to affiliates 470,075 1,922,049 24,462 25,148 2 1,263,160 (3,704,896) —
Total current liabilities 471,543 1,932,864 33,529 30,530 4,414 1,826,604 (3,873,577) 425,907
Long−term debt 299,874 — — 249,377 201,695 — — 750,946

Notes payable to affiliates 129,900 1,164,921 120,000 550,000 — 3,986,169 (5,950,990) —
Total liabilities 921,246 3,139,286 177,412 829,907 206,109 6,150,828 (9,824,567) 1,600,221
Total equity 6,949,196 6,860,785 4,128,237 4,001,207 1,680,588 5,702,402 (22,373,219) 6,949,196
Total liabilities and equity $ 7,870,442 $ 10,000,071 $ 4,305,649 $ 4,831,114 $ 1,886,697 $ 11,853,230 $ (32,197,786) $ 8,549,417
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CONDENSED CONSOLIDATING STATEMENT OF INCOME
Three Months Ended September 30, 2010
(in thousands)
Other
Non−guarantor
Operating revenues
Contract drilling services $ — $ 23,724 $ 5,363 $ — $ — $ 565,132 $ (9,300) $ 584,919
Reimbursables — 388 — — — 18,789 — 19,177
Labor contract drilling
services — — — — — 7,887 — 7,887
Other — (107) — — — 742 — 635
Total operating
revenues — 24,005 5,363 — — 592,550 (9,300) 612,618

Contract drilling services 18,924 8,475 1,657 — — 296,031 (9,300) 315,787
Reimbursables — 127 — — — 14,224 — 14,351
services — — — — — 5,302 — 5,302
Depreciation and
amortization — 9,494 924 — — 132,641 — 143,059
Selling, general and
administrative — 605 94 (63) — 16,079 — 16,715
Total operating costs

and expenses 18,924 18,701 2,675 (63) — 464,277 (9,300) 495,214
Operating income (loss) (18,924) 5,304 2,688 63 — 128,273 — 117,404

Equity earnings in affiliates
(net of tax) 124,218 155,504 38,484 136,039 35,842 — (490,087) —
Interest expense, net of
amounts capitalized (12,251) (14,845) (1,859) (12,645) (1,424) (2,668) 41,545 (4,147)
Interest income and other,
net 1,556 555 — 8,419 2,221 30,004 (41,545) 1,210
Income before income taxes 94,599 146,518 39,313 131,876 36,639 155,609 (490,087) 114,467
Income tax (provision) benefit — (18,445) — — — (956) — (19,401)
Net income 94,599 128,073 39,313 131,876 36,639 154,653 (490,087) 95,066
Net (income)/loss
attributable to
noncontrolling interests — — — — — (467) — (467)
Net income attributable

to Noble
Corporation $ 94,599 $ 128,073 $ 39,313 $ 131,876 $ 36,639 $ 154,186 $ (490,087) $ 94,599
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Nine Months Ended September 30, 2010
(in thousands)
Other
Non−guarantor
Operating revenues
Contract drilling services $ — $ 72,313 $ 12,847 $ — $ — $ 2,026,515 $ (30,600) $ 2,081,075
Reimbursables — 978 61 — — 56,124 — 57,163
services — — — — — 23,704 — 23,704
Other — 5 — — — 1,444 — 1,449
Total operating
revenues — 73,296 12,908 — — 2,107,787 (30,600) 2,163,391

Contract drilling services 18,931 27,082 4,793 — — 819,446 (30,600) 839,652
Reimbursables — 1,226 61 — — 43,172 — 44,459
services — — — — — 16,570 — 16,570
Depreciation and
amortization — 27,321 2,536 — — 354,918 — 384,775
administrative — 51,241 315 56 — (3,475) — 48,137
Total operating
costs and
expenses 18,931 106,870 7,705 56 — 1,230,631 (30,600) 1,333,593
Operating income (loss) (18,931) (33,574) 5,203 (56) — 877,156 — 829,798

(net of tax) 732,956 497,191 47,602 768,130 336,350 — (2,382,229) —
amounts capitalized (12,838) (50,179) (5,516) (32,010) (1,424) (8,852) 105,697 (5,122)
net 5,002 23,312 — 8,419 8,373 66,911 (105,697) 6,320
Income before income taxes 706,189 436,750 47,289 744,483 343,299 935,215 (2,382,229) 830,996
Income tax (provision) benefit — (27,537) — — — (96,803) — (124,340)
Net income 706,189 409,213 47,289 744,483 343,299 838,412 (2,382,229) 706,656
Net (income)/loss
attributable to
noncontrolling interests — — — — — (467) — (467)
Net income
attributable to
Noble Corporation $ 706,189 $ 409,213 $ 47,289 $ 744,483 $ 343,299 $ 837,945 $ (2,382,229) $ 706,189
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Three Months Ended September 30, 2009
(in thousands)
Other
Non−guarantor
Operating revenues
Contract drilling services $ — $ 29,500 $ 15,015 $ — $ — $ 841,975 $ (11,521) $874,969
Reimbursables — 443 — — — 22,012 — 22,455
services — — — — — 7,490 — 7,490
Other — 51 — — — 670 — 721
Total operating
revenues — 29,994 15,015 — — 872,147 (11,521) 905,635
Operating costs and

expenses
Contract drilling services (10,518) (2,249) 1,591 3 — 273,536 (11,521) 250,842
Reimbursables — 89 — — — 18,628 — 18,717
services — — — — — 4,642 — 4,642
Depreciation and
amortization — 7,718 3,026 — — 92,501 — 103,245
administrative (6,229) 622 481 — — 27,749 — 22,623
Impairment loss on
planned disposal of
assets — — — — — 2,076 — 2,076
Total operating
costs and
expenses (16,747) 6,180 5,098 3 — 419,132 (11,521) 402,145
Operating income (loss) 16,747 23,814 9,917 (3) — 453,015 — 503,490

Equity earnings in
affiliates (net of tax) 408,645 328,417 176,278 305,632 8,555 — (1,227,527) —
amounts capitalized (265) (16,185) (3,782) (9,844) — 1,646 28,051 (379)
net 2 — 2 — — 30,621 (28,051) 2,574
Income before income taxes 425,129 336,046 182,415 295,785 8,555 485,282 (1,227,527) 505,685
Income tax
(provision) benefit — (15,163) 5,434 — — (70,827) — (80,556)
Net income $425,129 $ 320,883 $187,849 $295,785 $ 8,555 $ 414,455 $ (1,227,527) $425,129
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(in thousands)
Other
Non−guarantor
Operating revenues
Contract drilling services $ — $ 113,722 $ 40,882 $ — $ — $ 2,508,449 $ (47,482) $ 2,615,571
Reimbursables — 1,493 — — — 60,474 — 61,967
Labor contract drilling services — — — — — 21,843 — 21,843
Other — 51 — — — 1,226 — 1,277
Total operating revenues — 115,266 40,882 — — 2,591,992 (47,482) 2,700,658

Contract drilling services — 25,348 5,239 29 — 759,618 (47,482) 742,752
Reimbursables — 820 — — — 51,261 — 52,081
Labor contract drilling services — — — — — 13,899 — 13,899
Depreciation and amortization — 24,206 7,738 — — 263,702 — 295,646
Selling, general and administrative — 3,643 1,342 — — 55,916 — 60,901
Impairment loss on planned disposal of assets — — — — — 31,053 — 31,053
Total operating costs and expenses — 54,017 14,319 29 — 1,175,449 (47,482) 1,196,332
Operating income (loss) — 61,249 26,563 (29) — 1,416,543 — 1,504,326

Equity earnings in affiliates (net of tax) 1,235,527 1,168,198 455,514 810,236 8,555 — (3,678,030) —
Interest expense, net of amounts capitalized (4,917) (48,486) (11,324) (15,300) — 4,987 73,779 (1,261)
Interest income and other, net 1,203 — 2 — — 77,538 (73,779) 4,964
Income before income taxes 1,231,813 1,180,961 470,755 794,907 8,555 1,499,068 (3,678,030) 1,508,029
Income tax (provision) benefit 383 (16,970) — — — (259,246) — (275,833)
Net income $ 1,232,196 $ 1,163,991 $ 470,755 $ 794,907 $ 8,555 $ 1,239,822 $ (3,678,030) $ 1,232,196
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CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
(in thousands)
Other
Non−guarantor
Cash flows from operating
activities
Net cash from
operating
activities $ (21,713) $ (57,507) $ (3,907) $ (26,975) $ 3,258 $ 965,055 $ — $ 858,211
Cash flows from investing

activities
New construction and
capital expenditures — (381,928) — — — (499,482) — (881,410)
affiliates — — — (1,239,600) — (490,000) 1,729,600 —
Acquisition of FDR
Holdings, Ltd., net of
cash acquired (1,629,644) — — — — — — (1,629,644)
Net cash from

investing
activities (1,629,644) (381,928) — (1,239,600) — (989,482) 1,729,600 (2,511,054)
Cash flows from financing

activities
Proceeds from issuance of
senior notes, net of
debt issuance costs — — — 1,238,074 — — — 1,238,074
Proceeds from issuance of
notes to joint venture
partner — — — — — 35,000 — 35,000
Settlement of interest rate
swaps — — — — — (2,041) — (2,041)
Advances (to) from
affiliates (78,205) 439,401 3,907 28,501 (3,258) (390,346) — —
Notes payable to affiliates 1,729,600 — — — — — (1,729,600) —
Net cash from

financing
activities 1,651,395 439,401 3,907 1,266,575 (3,258) (357,387) (1,729,600) 1,271,033
Net increase
(decrease) in cash
and cash
equivalents 38 (34) — — — (381,814) — (381,810)
Cash and cash equivalents,
beginning of period 3 268 — — — 725,954 — 726,225

end of period $ 41 $ 234 $ — $ — $ — $ 344,140 $ — $ 344,415
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(in thousands)
Other
Non−guarantor
activities
Net cash from
operating
activities $ 8,065 $ 17,508 $ 32,607 $ (1,166) $ 631 $ 1,358,097 $ — $ 1,415,742

activities
New construction and
capital expenditures — (457,233) (14,564) — — (465,322) — (937,119)
Repayments of notes from
affiliates — — 42,775 — — 331,900 (374,675) —
Net cash from

investing
activities — (457,233) 28,211 — — (133,422) (374,675) (937,119)

activities
Payments of bank credit
facilities — — — — — — — —
Payments of other
long−term debt — — (150,000) — — (22,700) — (172,700)
Advances (to) from
affiliates 368,028 471,364 100,653 1,166 (631 ) (940,580) — —
Repayments of notes to
affiliates (300,000) (31,900) — — — (42,775) 374,675 —
Repurchases of ordinary
shares (60,867) — — — — — — (60,867)
Other (15,886) — — — — — — (15,886)
Net cash from

financing
activities (8,725) 439,464 (49,347) 1,166 (631) (1,006,055) 374,675 (249,453)
Net increase
(decrease) in cash
and cash
equivalents (660) (261) 11,471 — — 218,620 — 229,170
beginning of period 661 445 26 — — 512,179 — 513,311

end of period $ 1 $ 184 $ 11,497 $ — $ — $ 730,799 $ — $ 742,481
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March 31, 2010
(in thousands)
Other
Non−guarantor
ASSETS
Current assets
Cash and cash
equivalents $ 209 $ 106 $ — $ — $ — $ 836,866 $ — $ 837,181
Accounts receivable — 9,774 2,862 — — 609,577 — 622,213
Accounts receivable
from affiliates 186,251 46,363 611,236 271,254 1,938 3,151,658 (3,972,504) 296,196
Short−term notes
receivable from
affiliates — 168,681 — — — — (168,681) —
Prepaid expenses and
other current assets — 16,193 240 — — 103,915 — 120,348
Total current assets 186,460 241,117 614,338 271,254 1,938 4,702,016 (4,141,185) 1,875,938

Drilling equipment,
facilities and other — 1,513,412 70,343 — — 7,518,416 — 9,102,171
Total property and

equipment, net — 1,384,803 22,152 — — 5,429,912 — 6,836,867

affiliates 3,507,062 — — — 479,107 1,904,821 (5,890,990) —
Other assets 2,519 10,262 2,992 1,645 1,092 258,729 — 277,239
Total assets $ 8,331,514 $ 10,234,725 $ 4,305,889 $ 5,240,918 $ 2,063,333 $ 12,295,478 $ (33,481,813) $ 8,990,044
LIABILITIES AND
EQUITY
Current liabilities
Current maturities of
long−term debt $ — $ — $ — $ — $ — $ — $ — $ —
Short−term notes
payables from
affiliates — — — — — 168,681 (168,681) —
Accounts payable and
accrued liabilities 5,875 11,138 10,962 769 630 441,269 — 470,643
Accounts payable to
affiliates 553,864 2,033,821 24,538 59,324 1,091 1,299,866 (3,972,504) —
Total current
liabilities 559,739 2,044,959 35,500 60,093 1,721 1,909,816 (4,141,185) 470,643
Long−term debt 299,883 — — 249,409 201,695 — — 750,987

Notes payable to affiliates 129,900 1,104,921 120,000 550,000 — 3,986,169 (5,890,990) —
Total liabilities 1,009,451 3,199,799 180,259 859,502 203,416 6,247,729 (10,032,175) 1,667,981
Commitments and
contingencies
Total equity 7,322,063 7,034,926 4,125,630 4,381,416 1,859,917 6,047,749 (23,449,638) 7,322,063
Total liabilities and

equity $ 8,331,514 $ 10,234,725 $ 4,305,889 $ 5,240,918 $ 2,063,333 $ 12,295,478 $ (33,481,813) $ 8,990,044
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Three Months Ended March 31, 2010
(in thousands)
Other
Non−guarantor
Operating revenues
Contract drilling services $ — $ 28,309 $ 2,468 $ — $ — $ 791,169 $ (13,300) $ 808,646
Reimbursables — 250 — — — 23,983 — 24,233
services — — — — — 7,761 — 7,761
Other — — — — — 211 — 211
Total operating
revenues — 28,559 2,468 — — 823,124 (13,300) 840,851

Contract drilling services 5 7,881 1,948 — — 256,247 (13,300) 252,781
Reimbursables — 111 — — — 19,632 — 19,743
services — — — — — 5,888 — 5,888
Depreciation and
amortization — 8,783 738 — — 106,143 — 115,664
administrative — 863 133 43 — 14,849 — 15,888
Total operating costs

and expenses 5 17,638 2,819 43 — 402,759 (13,300) 409,964
Operating income (loss) (5) 10,921 (351) (43) — 420,365 — 430,887

(net of tax) 377,338 175,025 (438) 389,881 177,391 — (1,119,197) —
amounts capitalized (413) (14,881) (1,818) (9,629) — (3,445) 29,721 (465)
net 1,713 1,816 — — 1,938 27,861 (29,721) 3,607
Income before income taxes 378,633 172,881 (2,607) 380,209 179,329 444,781 (1,119,197) 434,029
Income tax (provision) benefit — 1,259 — — — (56,655) — (55,396)
Net income $ 378,633 $ 174,140 $ (2,607) $ 380,209 $ 179,329 $ 388,126 $ (1,119,197) $ 378,633
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Three Months Ended March 31, 2010
(in thousands)
Other
Non−guarantor
activities
Net cash from operating
activities $ 5,918 $ 9,367 $ (3,983) $ (14,186) $ (1,814) $ 399,757 $ — $ 395,059

activities
New construction and capital
expenditures — (141,404) — — — (142,699) — (284,103)
Net cash from investing

activities — (141,404) — — — (142,699) — (284,103)

activities
Advances (to) from affiliates (5,712) 131,875 3,983 14,186 1,814 (146,146) — —
Net cash from financing

activities (5,712) 131,875 3,983 14,186 1,814 (146,146) — —
Net increase
(decrease) in cash
and cash equivalents 206 (162) — — — 110,912 — 110,956
beginning of period 3 268 — — — 725,954 — 726,225
Cash and cash equivalents, end

of period $ 209 $ 106 $ — $ — $ — $ 836,866 $ — $ 837,181
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion is intended to assist you in understanding our financial position at September 30, 2010, and our results of
operations for the three and nine months ended September 30, 2010 and 2009. The following discussion should be read in conjunction with the
consolidated financial statements and related notes contained in this Quarterly Report on Form 10−Q and the consolidated financial statements and
notes thereto included in the Annual Report on Form 10−K for the year ended December 31, 2009 filed by Noble Corporation, a Swiss corporation
(“Noble−Swiss”) and Noble Corporation, a Cayman Islands company (“Noble−Cayman”).
Forward−Looking Statements
This Quarterly Report on Form 10−Q includes “forward−looking statements” within the meaning of Section 27A of the U.S. Securities
Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All statements other than statements of historical
facts included in this report regarding the Frontier transaction and integration, contract backlog, fleet and benefits, our financial position, business
strategy, backlog, completion and acceptance of our newbuild rigs, contract commitments, dayrates, contract commencements, extension or renewals,
contract tenders, the outcome of any dispute, litigation or investigation, plans and objectives of management for future operations, foreign currency
requirements, results of joint ventures or indemnity claims, construction of rigs, industry conditions including the effect of disruptions of drilling in the
U.S. Gulf of Mexico, access to financing, taxes and tax rates, advantages of our worldwide internal restructuring, indebtedness covenant compliance,
possible amendments to credit facilities or resolution of issues under such facilities, and timing for compliance with any new regulations are
forward−looking statements. When used in this report, the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,”
“should” and similar expressions are intended to be among the statements that identify forward−looking statements. Although we believe that the
expectations reflected in such forward−looking statements are reasonable, we cannot assure you that such expectations will prove to be correct. These
forward−looking statements speak only as of the date of this report on Form 10−Q and we undertake no obligation to revise or update any
forward−looking statement for any reason, except as required by law. We have identified factors including but not limited to operating hazards and
delays, risks associated with operations outside the U.S., actions by regulatory authorities, customers, joint venture partners, contractors, lenders and
other third parties, legislation and regulations affecting drilling operations, costs and difficulties relating to the integration of businesses, factors
affecting the level of activity in the oil and gas industry, supply and demand of drilling rigs, factors affecting the duration of contracts, the actual
amount of downtime, factors that reduce applicable dayrates, violations of anti−corruption laws, hurricanes and other weather conditions and the future
price of oil and gas that could cause actual plans or results to differ materially from those included in any forward−looking statements. These factors
include those referenced or described in “Item 1A. Risk Factors” of Part II included herein, and in our other filings with the U.S. Securities and
Exchange Commission (“SEC”). We cannot control such risk factors and other uncertainties, and in many cases, we cannot predict the risks and
uncertainties that could cause our actual results to differ materially from those indicated by the forward−looking statements. You should consider these
risks and uncertainties when you are evaluating us.
Acquisition of FDR Holdings Limited
On July 28, 2010, Noble−Swiss and Noble AM Merger Co., a Cayman Islands company and indirect wholly owned subsidiary of
Noble−Swiss (“Merger Sub”), completed the acquisition of FDR Holdings Limited, a Cayman Islands company (“Frontier”). Under the terms of the
Agreement and Plan of Merger with Frontier and certain of Frontier’s shareholders, Merger Sub merged with and into Frontier, with Frontier surviving
as an indirect wholly owned subsidiary of Noble−Swiss and a wholly owned subsidiary of Noble−Cayman. The Frontier acquisition was for a purchase
price of approximately $2.76 billion and was completed in order to strategically expand and enhance our global fleet. The Frontier acquisition added
three dynamically positioned drillships (including two Bully−class joint venture−owned drillships under construction), two conventionally moored
drillships, including one which is Arctic−class, a conventionally moored deepwater semisubmersible drilling rig and one dynamically positioned
floating production, storage and offloading vessel (“FPSO”) to our fleet. Frontier’s results of operations were included in our results beginning July 28,
2010. We funded the cash consideration paid at closing of approximately $1.7 billion using proceeds from our July 2010 offering of senior notes and
existing cash on hand.
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U.S. Gulf of Mexico Operations

Subsequent to the April 20, 2010 fire and explosion on the Deepwater Horizon, a competitor’s drilling rig in the U.S. Gulf of Mexico, U.S.
governmental authorities implemented a moratorium on and suspension of specified types of drilling activities in the U.S. Gulf of Mexico
Judicial challenges were made to the initial actions of the U.S. government, and in July 2010 the government issued a revised moratorium
on and suspension of drilling. On October 12, 2010, the U.S. government lifted the moratorium following adoption of new regulations including a
drilling safety rule and a workplace safety rule, each of which imposed multiple obligations relating to offshore drilling operations. These obligations
relate to, among other things, additional certifications and verifications relating to compliance with applicable regulations; compatibility of blowout
preventers with drilling rigs and well design; third−party inspections and design review of blowout preventers; testing of casing installations; minimum
requirements for personnel operating blowout preventers; and training in deepwater well control.
In addition, the U.S. government has indicated that before any new deepwater drilling resumes, (i) operators must demonstrate that
containment resources are available promptly in the event of a deepwater blowout, (ii) the chief executive officer of each operator seeking to perform
deepwater drilling must certify that the operator has complied with all applicable regulations and (iii) the Bureau of Ocean Energy Management,
Regulation and Enforcement will conduct inspections of each deepwater drilling operation for compliance with the applicable regulations.
Our existing U.S. Gulf of Mexico operations have been and will continue to be negatively impacted by the events and governmental action
described above. As of September 30, 2010, our U.S. Gulf of Mexico operations included eight deepwater drilling units: the Noble Amos Runner,
Noble Clyde Boudreaux, Noble Danny Adkins, Noble Jim Thompson, Noble Driller, Noble Paul Romano, Noble Lorris Bouzigard and Noble Jim Day.
We estimate the negative impact to our revenues for the three and nine months ended September 30, 2010 to be approximately $146 million and
$164 million, respectively. We have worked and continue to work closely with our customers for drilling services in the U.S. Gulf of Mexico to
address the hardships imposed by the governmental actions described above. The discussion below briefly describes the current status of each of these
drilling units.
• Noble Amos Runner. We have been advised by our customer, Anadarko Petroleum, that it believes that the government−imposed
moratorium described above is a force majeure event permitting termination of the contract on the Noble Amos Runner. We do not
agree with this position and plan to enforce our contractual rights under that contract and under our other U.S. Gulf of Mexico
drilling contracts. We are currently in litigation with Anadarko over this dispute. Pending resolution of the legal dispute, which may
take an extended period of time, no revenues are being recognized under this contract. The Noble Amos Runner received its
blow−out preventer (“BOP”) certification and is currently operating in place of the Noble Lorris Bouzigard for LLOG at the full
dayrate under the Noble Lorris Bouzigard contract.
• Noble Clyde Boudreaux. In late June 2010, we reached agreement with our customer, Noble Energy, relating to the Noble Clyde
Boudreaux to place the drilling unit on standby for a daily rate of $145,000 per day from June 15 through December 12, 2010, which
period may be extended by mutual agreement with Noble Energy. We also agreed to negotiate in good faith a new contract that
would apply after the standby period at a dayrate of $397,500 per day, although neither party is not obligated to enter into a new
contract. This unit is currently undergoing the certification process for its BOP and is being actively marketed to potential customers.
• Noble Danny Adkins. This unit received its BOP certification. However, we cannot guarantee that our customer Royal Dutch Shell,
PLC (“Shell”) will be able to continue to secure required permits.
• Noble Jim Thompson and Noble Driller. These units are under contract with Shell and are undergoing shipyard projects. They are
concurrently undergoing the certification process for their BOPs.
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• Noble Paul Romano. This unit is idle, having completed its drilling contract in June 2010. The unit is currently undergoing the
certification process for its BOP and is being actively marketed to potential customers.
• Noble Lorris Bouzigard. This drilling unit is currently idle and is being actively marketed to potential customers.
• Noble Jim Day. We continue customer acceptance on the newbuild ultra−deepwater semisubmersible, the Noble Jim Day, which
was received from the shipyard in the second quarter of 2010. After customer acceptance, the unit is expected to begin work in the
U.S. Gulf of Mexico during the fourth quarter of 2010 although the events described above could have an effect on operations. As
has been previously disclosed, the drilling contract grants the customer a termination right in the event the rig is not ready to
commence operations by December 31, 2010.
It is still unclear when normal operations will resume, what the cost of additional safety measures will be and how additional regulations
will impact our operations in the U.S. Gulf of Mexico.
Consummation of Migration
On March 26, 2009, we completed a series of transactions that effectively changed the place of incorporation of our parent holding
company from the Cayman Islands to Switzerland. As a result of these transactions, Noble−Cayman, our former publicly−traded parent holding
company, became a direct, wholly−owned subsidiary of Noble−Swiss, our current publicly−traded parent company. Noble−Swiss’ principal asset is
100% of the shares of Noble−Cayman. Noble−Cayman has no public equity outstanding after March 26, 2009. The consolidated financial statements
of Noble−Swiss include the accounts of Noble−Cayman, and Noble−Swiss conducts substantially all of its business through Noble−Cayman and its
subsidiaries. In connection with these transactions, we relocated our principal executive offices, executive officers and selected personnel to Geneva,
Switzerland.
Executive Overview
Noble is a leading offshore drilling contractor for the oil and gas industry. Noble performs, through its subsidiaries, contract drilling
services with a fleet of 69 offshore drilling units (including five drilling rigs currently under construction) located worldwide, including in the Middle
East, India, the U.S. Gulf of Mexico, Mexico, the Mediterranean, the North Sea, Brazil, West Africa and Asian Pacific. Noble also owns and operates a
dynamically positioned floating production, storage and offloading vessel (“FPSO”).
Outlook
The overall offshore drilling market has been volatile since the events occurring in connection with the Deepwater Horizon, and the U.S.
governmental response to the incident. Despite the lifting of the moratorium and publication of new safety rules, we believe it is unlikely that we will
see significant progress for some time as indicated by the difficulties surrounding the issuance of new drilling permits, and we are unable to predict
when normal drilling operations will resume in the U.S. Gulf of Mexico. Outside of the U.S. Gulf of Mexico, we believe the risk for early contract
terminations or defaults under existing contracts has decreased over the prior year, but the risk has not been eliminated.
Furthermore, there is uncertainty regarding the sustainability of the global economic recovery, which is proceeding unevenly in different
geographic regions. In addition, there is uncertainty regarding the sustainability of the recovery of the global financial markets highlighted by issues in
the credit markets. During the third quarter of 2010, oil and gas prices responded differently to these recent developments. While gas prices decreased
modestly during the quarter, the price of oil has generally risen since the beginning of the quarter to approximately $80 per barrel at the close of the
quarter. We believe that prices for both commodities will continue to be volatile for the foreseeable future.
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Despite the increase in oil prices, we have not seen a significant increase in demand for offshore drilling services. Developments in the
U.S. Gulf of Mexico will continue to have an impact on the deepwater market segment in the short−term, however, we believe that the long−term
outlook remains strong. Even so, fixtures for ultradeepwater units remain at dayrates generally greater than $400,000. Activity remains relatively
stagnant in the deepwater and midwater segments and dayrates have declined significantly since their peaks in 2007−2008. Demand in the jackup
segment has increased during 2010 and for units operating outside the U.S. Gulf of Mexico, total utilization continues to hover around 80 percent.
However, we are seeing some differentiation in the jackup market segment with newer units having utilization rates exceeding 90 percent while units
that entered service before 2000 are operating with utilization rates closer to 70 percent. Likewise, there has been a bifurcation of dayrates between
older and newer units with new units earning a premium. Dayrates for both older and newer units have been relatively stable over the last quarter.
Demand for our drilling services generally depends on a variety of economic and political factors, including worldwide demand for oil and
gas, the ability of the Organization of Petroleum Exporting Countries (“OPEC”) to set and maintain production levels and pricing, the level of
production of non−OPEC countries and the policies of various governments regarding exploration and development of their oil and gas reserves. Our
results of operations depend on activity in the oil and gas production and development markets worldwide. Historically, oil and gas prices and market
expectations of potential changes in these prices have significantly affected that level of activity. Generally, higher oil and natural gas prices or our
customers’ expectations of higher prices result in greater demand for our services and lower oil and gas prices result in reduced demand for our
services. Demand for our services is also a function of the worldwide supply of mobile offshore drilling units. Industry sources report that a total of 41
newbuild jackups and 61 deepwater newbuilds are planned or under construction with scheduled delivery dates from November 2010 and beyond. The
jackup total includes approximately nine units announced since the end of the third quarter, none of which have future contracts. Industry analysts
have predicted that a new wave of speculative building of both jackup and ultradeepwater units may be beginning. The introduction of additional
non−contracted rigs into the marketplace could have an adverse affect on the level of demand for our services or the dayrates we are able to achieve.
In addition, as a result of exploration discoveries offshore Brazil, Petroleo Brasileiro S.A. (“Petrobras”), the Brazilian national oil
company, announced a plan to construct up to 28 deepwater rigs in Brazil and recently accepted bids to construct these units from a number of
shipyards and drilling contractors. Petrobras originally declared its intention to finance and own the first nine of these additional rigs. Petrobras also
stated that they would seek long−term contracts for the remaining 19 rigs to support construction and to allow drilling contractors to bid for the
opportunity to supply up to four rigs per contractor. However, these plans may change and Petrobras may decide to build and own more than nine rigs,
leaving fewer opportunities for contractor participation. Currently a deepwater drilling rig construction industry does not exist in Brazil. As a result, if
new shipyards are built, construction prices for new rigs built in such shipyards could exceed the price of an equivalent rig built in an existing yard
outside of Brazil. At current market dayrates, economic returns on these units may be challenged. We cannot predict how many deepwater units may
ultimately be constructed in Brazil or our participation in this program. This potential increase in supply could also adversely impact overall industry
dayrates and economics.
As of November 1, 2010, we had nine jackup units operating for Pemex Exploracion y Produccion (“Pemex”) in Mexico, six of which
have contracts scheduled to expire in 2010. Pemex has approved extensions to contracts for several of these rigs as the contracts have reached
expiration and have issued four ‘fast−track’ tenders aimed at keeping units working through year end 2010, but have allowed some of our other rigs to
become available. Some recent tenders published by Pemex contain a requirement that certain units must have entered service since the year 2000. We
cannot predict whether this age requirement will be present in future Pemex tenders. If this requirement is present in future tenders, it could require us
to seek work for our rigs in other locations, as the age of our rigs currently operating in Mexico do not meet this requirement. If such work is not
available, it could lead to additional idle time on some of our rigs. We cannot predict how many rigs might be affected or how long they could remain
idle. We remain optimistic that many, if not all, of our rigs currently operating in Mexico will continue to work for Pemex.
In connection with our existing drilling contracts with Petrobras for our three drillships operating in Brazil, we approved certain shipyard
reliability upgrade projects for these drillships, the Noble Leo Segerius, Noble Roger Eason and Noble Muravlenko. These upgrade projects, planned
for 2010 through 2013, are designed to enhance the reliability and operational performance of these drillships. There are a number of risks associated
with shipyard projects of this nature, particularly in Brazil, including potential project delays and cost overruns due to labor, customs, local shipyard,
local content and other issues. In addition, the drilling contracts for these vessels provide Petrobras with certain rights of termination in the event of
excessive downtime, and it is possible that Petrobras could exercise this right in the future with respect to one or more of these drillships prior to the
completion of these upgrade projects if the units suffer excessive downtime or other delays. We intend to continue to closely monitor and discuss with
Petrobras the status of these projects and plan to take appropriate steps to mitigate identified risks, which depending upon the circumstances could
involve a variety of options.
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On April 22, 2010, the Nigerian Oil and Gas Industry Content Development Bill was signed into law. The law is designed to create
Nigerian content in operations and transactions within the Nigerian oil and gas industry. The law sets forth certain requirements for the utilization of
Nigerian human resources and goods and services in oil and gas projects and creates a Nigerian Content Development and Monitoring Board to
implement and monitor the law and develop regulations pursuant to the law. The law also establishes a Nigerian Content Development Fund to fund
the implementation of the law, and requires that one percent of the value of every contract awarded in the Nigerian oil and gas industry be paid into the
fund. We cannot predict the impact the new law may have on our existing or future operations in Nigeria, but the effect on our operations there could
be significant.
While we cannot predict the future level of demand for our drilling services or future conditions in the offshore contract drilling industry,
we continue to believe we are well positioned within the industry and believe our acquisition of Frontier further strengthens our position, especially in
deepwater drilling. Furthermore, we believe that our liquidity and financial strength will continue to serve us well if additional opportunities present
themselves in the future.
Results and Strategy
In the third quarter of 2010, we recognized net income attributable to Noble−Swiss of $86 million, or $0.34 per diluted share, on total
revenues of $613 million. The average dayrate across our worldwide fleet decreased to $126,581 for the third quarter of 2010 from $156,683 for the
second quarter of 2010. Fleetwide average utilization was 79 percent in the third quarter of 2010, as compared to 80 percent in the second quarter of
2010. Daily contract drilling services costs increased to $68,351 for the third quarter of 2010 from $62,808 for the second quarter of 2010. As a result,
our contract drilling services margin decreased in the third quarter of 2010 to 46 percent as compared to 60 percent in the second quarter of 2010.
Our long−standing business strategy continues to be the active expansion of our worldwide offshore drilling and deepwater capabilities
through upgrades and modifications, acquisitions, divestitures of lower specification units and the deployment of our drilling assets in important oil
and gas producing areas. We have also actively expanded our offshore drilling and deepwater capabilities in recent years through the construction of
new rigs, and as part of this technical and operational expansion we plan to continue to seek opportunities to high−grade our fleet. During the third
quarter of 2010, we continued our expansion strategy as indicated by the following activities:
• As discussed in “U.S. Gulf of Mexico Operations” above, we continue customer acceptance on the newbuild ultra−deepwater
semisubmersible, the Noble Jim Day, which was received from the shipyard in the second quarter of 2010;
• through our newly acquired joint ventures we continued construction on two Bully class drillships, which are scheduled to be delivered to
our customer in August 2011 and December 2011, respectively;
• we continued construction on the dynamically positioned, ultra−deepwater drillship Noble Globetrotter I, currently under construction and
due to be delivered to our customer in December 2011; and
• we began construction on a second ultra−deepwater drillship, the Noble Globetrotter II, to be constructed with an anticipated delivery date
in the fourth quarter of 2013.
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Contract Drilling Services Backlog
We maintain a backlog (as defined below) of commitments for contract drilling services. The following table sets forth as of
September 30, 2010 the amount of our contract drilling services backlog and the percent of available operating days committed for the periods
indicated:
Year Ending December 31,

Total 2010 (1) 2011 2012 2013 2014−2023
(In millions)
Contract Drilling Services Backlog
Semisubmersibles/Drillships (2) (5) (7) (8) $ 12,666 $ 482 $ 1,940 $ 1,936 $ 1,803 $ 6,505
Jackups/Submersibles (3) 1,342 220 571 303 183 65
Other 9 9 — — — —
Total (4) $ 14,017 $ 711 $ 2,511 $ 2,239 $ 1,986 $ 6,570
Percent of Available Operating Days Committed

(6) 71% 49% 31% 25% 6%
Potential Suspension Adjustments (7) $ (62) $ (84) $ (29) $ — $ — $ 51
(1) Represents a three−month period beginning October 1, 2010.
(2) Our drilling contracts with Petrobras provide an opportunity for us

to earn performance bonuses based on downtime experienced for
our rigs operating offshore Brazil. With respect to our
semisubmersibles operating offshore Brazil, we have included in
our backlog an amount equal to 75 percent of potential
performance bonuses for such semisubmersibles, which amount is
based on and generally consistent with our historical earnings of
performance bonuses for these rigs. With respect to our drillships
operating offshore Brazil, we (a) have not included in our backlog
any performance bonuses for periods prior to the commencement
of certain upgrade projects planned for 2010 through 2013, which
projects are designed to enhance the reliability and operational
performance of our drillships, and (b) have included in our backlog
an amount equal to 75 percent of potential performance bonuses
for periods after the estimated completion of such upgrade
projects. Our backlog for semisubmersibles/drillships includes
approximately $278 million attributable to these performance
bonuses; however, the actual amounts of these bonuses could vary
materially. Our drilling contracts with Petrobras provide Petrobras
with the right to terminate the contract in the event of excessive
downtime.
The drilling contracts for the Noble Globetrotter I, Noble

Globetrotter II and Noble Phoenix, as well as the three−year
extension for the Noble Jim Thompson, with subsidiaries of Shell
provide opportunities for us to earn performance bonuses based on
key performance indicators as defined by Shell. With respect to
these contracts, we have included in our backlog an amount equal
to 75 percent of the potential performance bonuses for these rigs.
Our backlog for these rigs includes approximately $412 million
attributable to these performance bonuses; however, the actual
amounts of these bonuses could vary materially.
(3) Our drilling contracts with Pemex for certain jackups operating
offshore in Mexico are subject to price review and adjustment of
the rig dayrate. As of September 30, 2010, contracts for two
jackups have dayrates indexed to the world average of the highest
dayrates published by ODS−Petrodata. After an initial firm dayrate
period, the dayrates are generally adjusted quarterly based on
formulas calculated from the index. Our contract drilling services
backlog has been calculated using the September 30, 2010,
index−based dayrates for periods subsequent to the initial firm
dayrate period.
(4) Pemex has the ability to cancel its drilling contracts on 30 days or
less notice without any early termination payment. As of
September 30, 2010, we had nine rigs contracted to Pemex in
Mexico, and our backlog includes approximately $226 million
related to such contracts. Also, our drilling contracts generally
provide the customer an early termination right in the event we fail
to meet certain performance standards, including downtime
thresholds. While we do not currently anticipate any cancellations
as a result of events that have occurred to date, clients may from
time to time have the contractual right to do so.
(5) The drilling contract for the Noble Jim Day contains a termination
right in the event the rig is not ready to commence operations by
December 31, 2010.
(6)
Percentages take into account additional capacity from the
estimated dates of deployment of our newbuild rigs that are
scheduled to commence operations during the remainder of 2010
through 2013.
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(7) Each of our drilling contracts relating to the nine deepwater

rigs (including the Noble Jim Day and Noble Bully I)
contracted for the U.S. Gulf of Mexico contains a force
majeure contract clause that, if validly exercised, may result in
modification or cancellation of such contracts. It is not possible
to determine the impact to our revenues or backlog resulting
from the U.S. government−imposed restrictions and
regulations, efforts by operators to cancel or modify drilling
contracts, delays in issuing new drilling permits and other
consequences of the actions by the U.S. government. At
September 30, 2010, backlog related to these U.S. Gulf of
Mexico deepwater rigs totaled $6.5 billion, $166 million of
which represents backlog for the three−month period ending
December 31, 2010.
The amounts of backlog shown in the table above reflect the

backlog determined pursuant to contracts and rates in existence
for the eight deepwater rigs operating or to operate in the U.S.
Gulf of Mexico. The potential suspension adjustments reflect
possible adjustments to the contract status at September 30,
2010 and assume a suspension period through December 31,
2010. These potential suspension adjustments are presented to
assist in the understanding of potential effects on our backlog
that could arise from the U.S. government−imposed
restrictions described under “U.S. Gulf of Mexico Operations”
above and are not indicative of the actual results that may
occur. The potential suspension adjustments include or reflect
the following:
a) One customer, Anadarko Petroleum, has asserted

termination of its contract based on a force majeure event in
the U.S. Gulf of Mexico. We do not believe the customer has
the right to terminate the contract, and the future contracted
revenues in the amount of $70 million ($40 million for the
remaining three months of 2010) have been included in our
backlog as of September 30, 2010. This matter is in
litigation, and we will not realize these revenues if the
customer is successful in the related litigation. Pending
resolution of the legal dispute, no revenues are being
recognized under this contract.
b) We have entered into an agreement with Shell, effective

June 27, 2010, which provides that Shell may suspend the
contracts on three Noble units operating in the U.S. Gulf of
Mexico during any period of regulatory restriction by paying
reduced suspension dayrates in lieu of the normal dayrates of
$336,200, $383,500 and $447,000, respectively. The term of
the initial contract is also extended by the suspension period.
The impact of this agreement is to shift backlog among
periods with an immaterial increase to total backlog because
of the reduced standby rates. The potential backlog reduction
for the remaining three months of 2010 totals approximately
$44 million.
c) We have entered into an agreement with Noble Energy

effective June 15, 2010 providing for, among other things,
the cancellation of the initial drilling contract for a
deepwater drilling unit and payment of a standby dayrate of
$145,000 from June 15, 2010 through December 12, 2010,
without right of cancellation. The parties also agreed to
negotiate in good faith a new drilling contract following the
standby period with a dayrate of $397,500 and having a term
equal to the previous contract term (previously expected to
end in November 2011) without regard to the standby
period. Backlog as of September 30, 2010 includes the
non−cancellable standby rate through December 12, 2010.
There is no guarantee that agreement on a new contract will
be reached and, accordingly, no related amounts have been
included in our backlog subsequent to December 12, 2010.
(8) The Noble Homer Ferrington is under contract with a

subsidiary of ExxonMobil Corporation (“ExxonMobil”), who
entered into an assignment agreement with BP for a two well
farmout of the rig in Libya after successfully drilling two wells
with the rig for ExxonMobil. In August 2010, BP attempted to
terminate the assignment agreement claiming that the rig was
not in the required condition. ExxonMobil has informed us
that we must look to BP for payment of the dayrate during the
assignment period. In August 2010, we initiated arbitration
proceedings under the drilling contract against both BP and
ExxonMobil. We do not believe BP had the right to terminate
the assignment agreement and believe the rig continues to be
fully ready to operate under the drilling contract. We believe
we are owed dayrate by either or both of these clients. The
operating dayrate was approximately $538,000 per day for the
work in Libya. We are proceeding with the arbitration process
and intend to vigorously pursue these claims. Due to the
uncertainties noted above, we have not recognized any revenue
during the assignment period. The future contracted revenues
totaling $286 million ($47 million for the remaining three
months of 2010) have been included in our backlog as of
September 30, 2010.
Our contract drilling services backlog reported above reflects estimated future revenues attributable to both signed drilling contracts and
letters of intent. A letter of intent is generally subject to customary conditions, including the execution of a definitive drilling contract. For a number of
reasons, it is possible that some customers that have entered into letters of intent will not enter into signed drilling contracts. We calculate backlog for
any given unit and period by multiplying the full contractual operating dayrate for such unit by the number of days remaining in the period. The
reported contract drilling services backlog does not include amounts representing revenues for mobilization, demobilization and contract preparation,
which are not expected to be significant to our contract drilling services revenues, amounts constituting reimbursables from customers or amounts
attributable to uncommitted option periods under drilling contracts or letters of intent.
The amount of actual revenues earned and the actual periods during which revenues are earned may be different than the backlog amounts
and backlog periods set forth in the table above due to various factors, including, but not limited to, shipyard and maintenance projects, unplanned
downtime, weather conditions and other factors that result in applicable dayrates lower than the full contractual operating dayrate. In addition, amounts
included in the backlog may change because drilling contracts may be varied or modified by mutual consent or customers may exercise early
termination rights contained in some of our drilling contracts or decline to enter into a drilling contract after executing a letter of intent. As a result, our
backlog as of any particular date may not be indicative of our actual operating results for the subsequent periods for which the backlog is calculated.
As of September 30, 2010, we estimate Shell and Petrobras represent more than 50% and 20%, respectively, of our backlog.
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Internal Investigation
In 2007, we began, and voluntarily contacted the SEC and the U.S. Department of Justice (“DOJ”) to advise them of, an internal
investigation of the legality under the United States Foreign Corrupt Practices Act (“FCPA”) and local laws of certain reimbursement payments made
by our Nigerian affiliate to customs agents in Nigeria. In November 2010, we finalized settlements of this matter with each of the SEC and the DOJ. In
order to resolve the DOJ investigation, we entered into a non−prosecution agreement with the DOJ, which provides for the payment of a fine of $2.6
million, as well as certain undertakings, including continued cooperation with the DOJ, compliance with the FCPA, certain self−reporting and annual
reporting obligations and certain restrictions on our public discussion regarding the agreement. The agreement does not require that we install a
monitor to oversee our activities and compliance with laws. In order to resolve the SEC investigation, we agreed to the entry of a civil judgment
against us for violations of the FCPA. Pursuant to the agreed judgment, we agreed to disgorge profits of $4.3 million, pay prejudgment interest of $1.3
million and refrain from denying the allegations contained in the SEC’s petition, except in other litigation to which the SEC is not a party. We also
agreed to an injunction restraining us from violating the anti−bribery, books and records, and internal controls provisions of the FCPA, and we waived
a variety of litigation rights with respect to the conduct at issue. The agreed judgment does not require a monitor.
In connection with the internal investigation, we had already enhanced our compliance program and efforts and we will continue to
emphasize the importance of compliance and ethical business conduct. Though the settlements described above conclude the investigations of the SEC
and the DOJ, we could be investigated by relevant foreign jurisdictions, and we could face fines or other sanctions in those jurisdictions. Any sanctions
and other costs we may incur as a result of any such investigation, or any future alleged violations of the FCPA or similar laws could have a material
adverse effect on our business or financial condition and could damage our reputation and ability to do business, to attract and retain employees and to
access capital markets.
We are currently operating three jackup rigs offshore Nigeria. The temporary import permits covering two of these rigs expired in
November 2008 and we have pending applications to renew these permits. We have received notice that we will be allowed to obtain a new temporary
import permit for one of the two rigs and are in the process of clarifying this approval. However, as of October 31, 2010, the Nigerian customs office
had not acted on our application for the second unpermitted rig, but we are discussing undertaking the same process as for the first rig. We did obtain a
new temporary import permit for the third rig in 2009 that had previously been operating with an expired temporary import permit, while the
application was pending, by exporting and re−importing the rig. We continue to seek to avoid material disruption to our Nigerian operations; however,
there can be no assurance that we will be able to obtain new permits or further extensions of permits necessary to continue the operation of our rigs in
Nigeria. If we cannot obtain a new permit or an extension necessary to continue operations of any rig, we may need to cease operations under the
drilling contract for such rig and relocate such rig from Nigerian waters. In any case, we also could be subject to actions by Nigerian customs for
import duties and fines for these two rigs, as well as other drilling rigs that operated in Nigeria in the past. We cannot predict what impact these events
may have on any such contract or our business in Nigeria. Furthermore, we cannot predict what changes, if any, relating to temporary import permit
policies and procedures may be established or implemented in Nigeria in the future, or how any such changes may impact our business there.
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Results of Operations
For the Three Months Ended September 30, 2010 and 2009
General
Net income attributable to Noble−Swiss for the three months ended September 30, 2010 (the “Current Quarter”) was $86 million, or $0.34
per diluted share, on operating revenues of $613 million, compared to net income for the three months ended September 30, 2009 (the “Comparable
Quarter”) of $426 million, or $1.63 per diluted share, on operating revenues of $906 million.
Rig Utilization, Operating Days and Average Dayrates
Operating revenues and operating costs and expenses for our contract drilling services segment are dependent on three primary metrics —
rig utilization, operating days and dayrates. The following table sets forth the average rig utilization, operating days and average dayrates for our rig
fleet for the three months ended September 30, 2010 and 2009:
Average Rig Operating Average

Utilization (1) Days (2) Dayrates
Three Months Ended Three Months Ended Three Months Ended
September 30, September 30, September 30,
2010 2009 2010 2009 % Change 2010 2009 % Change
Jackups 77% 80% 3,032 3,183 −5% $ 90,791 $ 143,388 −37%

Semisubmersibles > 6000’ (3) 89% 98% 736 631 17% 203,316 434,435 −53%
Semisubmersibles < 6000’ (4) 94% 100% 321 276 16% 102,589 261,167 −61%
Drillships 100% 100% 468 276 70% 229,963 243,186 −5%
FPSO/Submersibles 26% 42% 64 78 −18% 304,000 65,944 361%
Total 79% 83% 4,621 4,444 4% $ 126,581 $ 196,900 −36%
(1) Information reflects our policy of reporting on the basis of the

number of rigs in our fleet excluding newbuild rigs under
construction.
(2) Information reflects the number of days that our rigs were
operating under contract.
(3) These units have water depth ratings of 6,000 feet or greater.
(4) These units have water depth ratings of less than 6,000 feet.
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Contract Drilling Services
The following table sets forth the operating revenues and the operating costs and expenses for our contract drilling services segment for the
three months ended September 30, 2010 and 2009:
Three Months Ended

September 30, Change
2010 2009 $ %
Operating revenues:
Contract drilling services $ 584,919 $ 874,969 $ (290,050) −33%
Reimbursables (1) 18,488 21,511 (3,023) −14%
Other 635 509 126 25%
$ 604,042 $ 896,989 $ (292,947) −33%
Operating costs and expenses:

Contract drilling services $ 315,844 $ 250,842 $ 65,002 26%
Reimbursables (1) 13,696 17,811 (4,115) −23%
Depreciation and amortization 140,199 100,669 39,530 39%
Selling, general and administrative 25,220 21,629 3,591 17%
Loss on involuntary conversion — 2,076 (2,076) **
494,959 393,027 101,932 26%
Operating income $ 109,083 $ 503,962 $ (394,879) −78%
(1) We record reimbursements from customers for out−of−pocket

expenses as operating revenues and the related direct costs as
operating expenses. Changes in the amount of these
reimbursables generally do not have a material effect on our
financial position, results of operations or cash flows.
** Not a meaningful percentage

Operating Revenues. Contract drilling services revenue decreases for the Current Quarter as compared to the Comparable Quarter were
primarily driven by reductions in average dayrates and utilization. Lower dayrates decreased revenues approximately $312 million, while more
operating days due to the acquisition of Frontier and additional newbuilds, partially offset by decreased utilization, increased revenues approximately
$22 million.
The decrease in contract drilling services revenue resulted primarily from our jackup rigs and our semisubmersibles, which generated
approximately $181 million and $164 million less revenue for the Current Quarter as compared to the Comparable Quarter, respectively. The decrease
in jackup revenue was due to dayrates decreasing 37%, primarily from the contractual re−pricing of rigs in the Middle East, the North Sea, and Mexico
resulting from changes in market conditions in the global shallow water market. The decrease in semisubmersibles revenue relates to an average
dayrate decrease of 53%, which primarily is a result of drilling restrictions in the U.S. Gulf of Mexico where lower standby rates replaced the standard
operating dayrates for a majority of our customers.
The decreases in revenue for the above rig classes were partially offset by higher revenues from our drillships and other rigs, which
increased $55 million in the Current Quarter as compared to the Comparable Quarter. The increase was primarily due to the addition of the drillships
Noble Discoverer, the Noble Duchess and the FPSO vessel Seillean, which were all added to the fleet as part of the Frontier acquisition on July 28,
2010.
Operating Costs and Expenses. Contract drilling services operating costs and expenses increased $65 million for the Current Quarter as
compared to the Comparable Quarter. In addition to the acquisition of Frontier, our newbuild rigs, the Noble Danny Adkins and Noble Dave Beard,
which were added to the fleet in October 2009 and March 2010, respectively, added approximately $53 million of operating costs in the Current
Quarter. Excluding the additional expenses related to these rigs, our contract drilling costs increased $12 million in the Current Quarter from the
Comparable Quarter. This change was primarily driven by a $15 million increase in acquisition costs in the quarter, due to the acquisition of Frontier,
partially offset by a $3 million decrease in rig maintenance and other expenses during the Current Quarter.
The increase in depreciation and amortization in the Current Quarter over the Comparable Quarter was primarily due to depreciation on
newbuilds added to the fleet, the addition of the Frontier rigs and additional depreciation related to other capital expenditures on our fleet since the
Comparable Quarter.
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Other
The following table sets forth the operating revenues and the operating costs and expenses for our other services for the three months
ended September 30, 2010 and 2009:
Three Months Ended

2010 2009 $ %
Operating revenues:
Labor contract drilling services $ 7,887 $ 7,490 $ 397 5%
Reimbursables (1) 689 944 (255) −27%
Other — 212 (212) −100%
$ 8,576 $ 8,646 $ (70) −1%

Labor contract drilling services $ 5,302 $ 4,642 $ 660 14%
Reimbursables (1) 655 906 (251) −28%
Depreciation and amortization 3,083 2,576 507 20%
Selling, general and administrative 262 71 191 269%
9,302 8,195 1,107 14%
Operating (loss) income $ (726) $ 451 $ (1,177) **


Operating Revenues and Costs and Expenses. Revenues and expenses associated with our Canadian labor contract drilling services
increased in the Current Quarter as a result of fluctuations in foreign currency exchange rates coupled with an increase in depreciation due to
additional assets placed in service during 2010.
Other Income and Expenses
Selling, General and Administrative Expenses. Consolidated selling, general and administrative expenses increased $4 million in the
Current Quarter as compared to the Comparable Quarter. The increase is primarily due to an additional $3 million accrual related to our FCPA
settlement, coupled with $2 million in additional costs related to the operations of Frontier, partially offset by a $1 million decrease in professional fees
and other expenses.
Income Tax Provision. Our income tax provision decreased $60 million in the Current Quarter primarily due to a decline in pre−tax
earnings of approximately 79 percent, which reduced income tax expense by approximately $64 million in the Current Quarter. In addition, this
decline was partially offset by a higher effective tax rate of 19.0 percent in the Current Quarter as compared to 15.9 percent in the Comparable Quarter,
which increased income tax expense by approximately $4 million. The increase in tax rate was principally due to a change in our geographic revenue
mix primarily due to drilling restrictions in the U.S. Gulf of Mexico, partially offset by a favorable tax result in our West Africa operations.
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For the Nine Months Ended September 30, 2010 and 2009
General
Net income attributable to Noble−Swiss for the nine months ended September 30, 2010 (the “Current Period”) was $675 million, or $2.62
per diluted share, on operating revenues of $2.2 billion, compared to net income for the nine months ended September 30, 2009 (the “Comparable
Period”) of $1.2 billion, or $4.70 per diluted share, on operating revenues of $2.7 billion.
Rig Utilization, Operating Days and Average Dayrates
Operating revenues and operating costs and expenses for our contract drilling services segment are dependent on three primary metrics —
rig utilization, operating days and dayrates. The following table sets forth the average rig utilization, operating days and average dayrates for our rig
fleet for the nine months ended September 30, 2010 and 2009:
Average Rig Operating Average

Utilization (1) Days (2) Dayrates
Nine Months Ended Nine Months Ended Nine Months Ended
September 30, September 30, September 30,
2010 2009 2010 2009 % Change 2010 2009 % Change
Jackups 80% 82% 9,357 9,502 −2% $ 101,424 $ 153,027 −34%

Semisubmersibles > 6000’ (3) 90% 97% 2,146 1,857 16% 343,029 404,254 −15%
Semisubmersibles < 6000’ (4) 98% 100% 864 819 5% 196,480 253,132 −22%
Drillships 89% 87% 897 716 25% 229,963 248,102 −7%
FPSO/Other (5) 10% 66% 64 418 −85% 303,056 61,711 391%
Total 80% 85% 13,328 13,312 0% $ 156,142 $ 196,476 −21%
(1) Information reflects our policy of reporting on the basis of the

number of actively marketed rigs in our fleet excluding
newbuild rigs under construction.
(2) Information reflects the number of days that our rigs were
operating under contract.
(3) These units have water depth ratings of 6,000 feet or greater.
(4) These units have water depth ratings of less than 6,000 feet.
(5) Effective March 31, 2009, the Noble Fri Rodli, which had
been cold stacked since October 2007, was removed from our
rig fleet.
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Contract Drilling Services

The following table sets forth the operating revenues and the operating costs and expenses for our contract drilling services segment for the
nine months ended September 30, 2010 and 2009:
Nine Months Ended

2010 2009 $ %
Operating revenues:
Contract drilling services $ 2,081,075 $ 2,615,571 $ (534,496) −20%
Reimbursables (1) 54,780 59,962 (5,182) −9%
Other 1,449 1,050 399 38%
$ 2,137,304 $ 2,676,583 $ (539,279) −20%

Contract drilling services $ 845,870 $ 742,752 103,118 14%
Reimbursables (1) 42,191 50,154 (7,963) −16%
Selling, general and administrative 70,523 60,707 9,816 16%
Loss on asset disposal/involuntary conversion — 31,053 (31,053) **
1,335,338 1,173,183 162,155 14%
Operating income $ 801,966 $ 1,503,400 $ (701,434) −47%


Operating Revenues. Contract drilling services revenue decreases for the Current Period as compared to the Comparable Period were
primarily driven by reductions in average dayrates and utilization. Lower dayrates decreased revenues approximately $537 million, while more
operating days due to the acquisition of Frontier and additional newbuilds, partially offset by decreased utilization, increased revenues approximately
$3 million.
The decrease in contract drilling services revenue resulted primarily from our jackup rigs, which generated approximately $505 million
less in revenue for the Current Period as compared to the Comparable Period. The decrease in jackup revenue was from both a decrease in dayrates and
utilization, with dayrates decreasing 34% and utilization falling 2%. The decrease in utilization resulted from thirteen rigs spending significant stacked
time in the Current Period as compared to only six rigs in the Comparable Period. The decrease in dayrates was primarily due to re−pricing of rigs in
the Middle East, the North Sea, and Mexico from changes in market conditions in the global shallow water market. Additionally, because of slight
decreases in dayrates, revenues from our semisubmersibles decreased $51 million, primarily resulting from stand−by rates related to drilling
restrictions in the U.S. Gulf of Mexico in the Current Period as compared to the Comparable Period. These amounts were partially offset by higher
revenues of $22 million from our drillships and other rigs principally due to additional operating days following the Frontier acquisition.
Operating Costs and Expenses. Contract drilling services operating costs and expenses increased $103 million for the Current Period as
compared to the Comparable Period. Our newbuild rigs, the Noble Scott Marks, Noble Danny Adkins and Noble Dave Beard, which were added to the
fleet in June 2009, October 2009 and March 2010, respectively, added approximately $83 million of operating costs in the Current Period. The
acquisition of the Frontier rigs added an additional $24 million of operating costs. Excluding the additional expenses related to these newbuild and
Frontier rigs, our contract drilling costs decreased $4 million in the Current Period from the Comparable Period. This change was principally due to a
decrease in maintenance expenses of $15 million, coupled with a decrease in transportation and other expenses of $8 million, partially offset by a
$19 million increase in acquisition costs due to the acquisition of Frontier.
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The increase in depreciation and amortization in the Current Period over the Comparable Period was primarily due to depreciation on
newbuilds added to the fleet, depreciation of the Frontier acquired rigs, and additional depreciation related to other capital expenditures on our fleet
since the Comparable Period.
Other
The following table sets forth the operating revenues and the operating costs and expenses for our other services for the nine months ended
September 30, 2010 and 2009:
Nine Months Ended

2010 2009 $ %
Operating revenues:
Labor contract drilling services $ 23,704 $ 21,843 $ 1,861 9%
Reimbursables (1) 2,383 2,005 378 19%
Other — 227 (227) **
$ 26,087 $ 24,075 $ 2,012 8%

Labor contract drilling services $ 16,570 $ 13,899 2,671 19%
Reimbursables (1) 2,268 1,927 341 18%
Selling, general and administrative 738 194 544 280%
28,188 23,147 5,041 22%
Operating (loss) income $ (2,101) $ 928 $ (3,029) **


Operating Revenues and Costs and Expenses. Revenues and expenses associated with our Canadian labor contract drilling services
increased in the Current Period as a result of fluctuations in foreign currency exchange rates.
Other Income and Expenses
Selling, General and Administrative Expenses. Consolidated selling, general and administrative expenses increased $10 million in the
Current Period as compared to the Comparable Period. The increase is primarily due to an accrual of $8 million related to our FCPA settlement,
expatriate costs related to the relocation of our executive officers and selected personnel to Switzerland of $4 million, partially offset by a $2 million
decrease in transaction fees related to our migration to Switzerland and other expenses.
Income Tax Provision. Our income tax provision decreased $149 million in the Current Period primarily due to a decline in pre−tax
earnings combined with a lower effective tax rate in the Current Period compared to the Comparable Period. Pre−tax earnings decreased
approximately 47 percent during the Current Period as compared to the Comparable Period resulting in a reduction of approximately $129 million in
income tax expense. The lower effective tax rate, which was 15.8 percent in the Current Period compared to 18.3 percent in the Comparable Period,
reduced income tax expense by approximately $20 million. During the fourth quarter of 2009, we completed an internal restructuring of the ownership
of substantially all of our drilling rigs under a single non−U.S. entity. In addition to certain business advantages, the restructuring had a beneficial
impact on the effective tax rate in the Current Period.
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Liquidity and Capital Resources

Overview
Our principal capital resource in the Current Period was net cash from operating activities of $1.3 billion, which compared to $1.5 billion
in the Comparable Period. The decrease in net cash from operating activities in the Current Period was primarily attributable to a decrease in net
income partially offset by a decrease in outstanding accounts receivable. At September 30, 2010, we had cash and cash equivalents of $367 million and
$600 million available under our bank credit facility described under “Credit Facility and Long−Term Debt” below. We had working capital of
$399 million and $1.0 billion at September 30, 2010 and December 31, 2009, respectively. Primarily as a result of our $1.25 billion debt offering in
July 2010, total debt as a percentage of total debt plus equity increased to 27 percent at September 30, 2010 from 10 percent at December 31, 2009.
Additionally, at September 30, 2010, we had a total contract drilling services backlog of approximately $14 billion. Our backlog as of September 30,
2010 reflects a commitment of 71 percent of operating days for the remainder of 2010 and 49 percent for 2011. See additional information regarding
our backlog at “Contract Drilling Services Backlog.”
As a result of the cash generated by our operations, our cash on hand and the availability under our bank credit facility, we believe our
liquidity and financial condition are sufficient to meet all of our reasonably anticipated cash flow needs for the remainder of 2010 including:
• normal recurring operating expenses;
• capital expenditures, including expenditures for newbuilds and upgrades;
• repurchase of shares;
• payments of return of capital in the form of a reduction of par value of our shares (in−lieu of dividends); and
• contributions to our pension plans.
Due to the uncertainties regarding the U.S. Gulf of Mexico and the current market conditions for our jackup rigs, our cash flows from
operations could be negatively impacted in the near term, which would impact our liquidity. The availability of capital and credit to fund the
continuation and expansion of our business operations worldwide could impact our liquidity and financial condition in the future. Our long−term
liquidity requirements will primarily relate to expenditures for newbuild rigs, ongoing maintenance expenditures and repaying or refinancing debt. It
may be difficult or more expensive for us to access the capital markets in the future, which could have an adverse impact on our ability to react to
changing economic and business conditions, to fund our capital expenditures, to refinance debt and to make acquisitions.
Capital Expenditures
Our primary capital requirement for the remainder of 2010 will be for capital expenditures. Capital expenditures, excluding the fair value
of assets acquired as part of the Frontier acquisition, totaled $886 million and $893 million for the nine months ended September 30, 2010 and 2009,
respectively.
At September 30, 2010, we had five rigs under construction, and capital expenditures for new construction in the Current Period totaled
$382 million. Capital expenditures for newbuild rigs consisted of the following expenditures:
Expenditures in 2010
Project (in millions)
Noble Jim Day $ 98.3
Noble Globetrotter II 94.7
Noble Globetrotter I 91.1
Noble Bully II 22.3
Noble Bully I 16.7
Other 58.8
Total $ 381.9
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Other capital expenditures totaled $440 million in the first nine months of 2010, which included approximately $311 million for major
upgrade projects, including $174 million to upgrade our three drillships currently operating under contracts with Petrobras. In addition, capitalized
major maintenance expenditures, which have useful lives ranging from 3 to 5 years, totaled $64 million for the nine months ended September 30,
2010.
Excluding the fair value of assets acquired as part of the Frontier acquisition, our total capital expenditure estimate for 2010 is
approximately $1.4 billion. In connection with our 2010 and future capital expenditure programs, as of September 30, 2010, we had outstanding
commitments, including shipyard and purchase commitments, for approximately $1.4 billion, of which $1.1 billion is anticipated to be spent within the
next twelve months. Our remaining 2010 capital expenditure budget will generally be spent at our discretion. We may accelerate or delay capital
projects as needed. We continue to monitor regulatory developments in the U.S. Gulf of Mexico and resulting potential capital expenditures that will
be required to comply with such regulations. Based on our preliminary expectations relating to the regulations adopted to date, we believe the
additional capital expenditures in the U.S. Gulf of Mexico necessary to comply with the governmental regulations will not exceed $10 million per rig.
Actual amounts will depend on final regulations and will also vary per rig, depending on several factors including the date upon which the rig entered
our fleet. We also anticipate incurring additional amounts on certain other rigs within our fleet that are located outside the U.S. Gulf of Mexico and are
in the process of assessing what expenditures will be made and the amount of such expenditures.
From time to time we consider possible projects that would require capital expenditures or other cash expenditures that are not included in
our capital budget, and such unbudgeted capital or cash expenditures could be significant. In addition, we will continue to evaluate acquisitions of
drilling units from time to time. Other factors that could cause actual capital expenditures to materially exceed planned capital expenditures include
delays and cost overruns in shipyards (including costs attributable to labor shortages), shortages of equipment, latent damage or deterioration to hull,
equipment and machinery in excess of engineering estimates and assumptions, and changes in design criteria or specifications during repair or
construction.
Share Repurchases and Dividends
At September 30, 2010, 6.8 million registered shares remained available under the existing Board authorization for our share repurchase
program. Total share repurchases for the nine months ended September 30, 2010 were 6.3 million, which included 6.1 million shares that were
repurchased in open market transactions under our share repurchase program for approximately $219 million. In addition, the Company acquired
approximately 0.2 million shares surrendered by employees for taxes payable upon the vesting of restricted stock for $10 million. Future repurchases
by Noble−Swiss will be subject to the requirements of Swiss law, including the requirement that Noble−Swiss and its subsidiaries may only
repurchase shares if and to the extent that sufficient freely distributable reserves are available.
Our most recent quarterly payment to shareholders, in the form of a capital reduction, was paid on August 19, 2010, to shareholders of
record on August 9, 2010, in the aggregate amount of approximately $0.665 per share. The amounts were based on a regular par value reduction of
Swiss Francs (“CHF”) 0.13 and a special par value reduction of CHF 0.56. The declaration and payment of returns of capital or dividends in the future
will depend on our results of operations, financial condition, cash requirements, future business prospects, contractual restrictions and other factors
deemed relevant by our Board of Directors, and must be approved in advance by our shareholders.
Our Board of Directors and shareholders approved the payment of a regular return of capital through a reduction of the par value of our
shares in a total amount equal to CHF 0.52 per share to be paid in four equal installments. The first installment was paid in August 2010 and the
remaining three installments are scheduled for November 2010, February 2011 and May 2011. The payment of future returns of capital will be made in
U.S. dollars based on the CHF/USD exchange rate available approximately two business days prior to the payment date.
Contributions to Pension Plans
Noble maintains certain pension plans for both Non−U.S. and U.S. employees. The Pension Protection Act of 2006 requires that pension
plans fund towards a target of at least 100 percent with a transition through 2011 and increases the amount we are allowed to contribute to our U.S.
pension plans in the near term. During the nine months ended September 30, 2010 and 2009, we made contributions to our pension plans totaling
$15 million and $13 million, respectively. We expect the minimum funding to our non−U.S. and U.S. plans in 2010, subject to applicable law, to be
approximately $17 million. We continue to monitor and evaluate funding options based upon market conditions and may increase contributions at our
discretion.
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Credit Facility and Long−Term Debt

We have a $600 million unsecured bank credit facility (the “Credit Facility”). The Credit Facility contains various covenants, including a
debt to total tangible capitalization covenant (as defined in the Credit Facility) that limits this ratio to 0.60. As of September 30, 2010, our ratio of debt
to total tangible capitalization was 0.21.
The Credit Facility provides us with the ability to issue up to $150 million in letters of credit. While the issuance of letters of credit does
not increase our borrowings outstanding, it does reduce the amount available. At September 30, 2010, we had no borrowing or letters of credit
outstanding under the Credit Facility. We believe that we maintain good relationships with our lenders under the Credit Facility, and we believe that
our lenders have the liquidity and capability to perform should the need arise for us to draw on the Credit Facility.
The indentures governing our outstanding senior unsecured notes contain covenants that place restrictions on certain merger and
consolidation transactions, unless we are the surviving entity or the other party assumes the obligations under the indenture, and on the ability to sell or
transfer all or substantially all of our assets. In addition, there are restrictions on incurring or assuming certain liens and sale and lease−back
transactions. At September 30, 2010, we were in compliance with all our debt covenants. We continually monitor compliance with the covenants under
our notes and, based on our expectations for 2010, expect to remain in compliance during the year.
At September 30, 2010, we had letters of credit of $128 million and performance and tax assessment bonds totaling $364 million
supported by surety bonds outstanding. Of the letters of credit outstanding, $74 million were issued to support bank bonds in connection with our
drilling units in Nigeria. Additionally, certain of our subsidiaries issue, from time to time, guarantees of the temporary import status of rigs or
equipment imported into certain countries in which we operate. These guarantees are issued in lieu of payment of custom, value added or similar taxes
in those countries.
Our long−term debt was $2.7 billion at September 30, 2010 as compared to $751 million at December 31, 2009. The increase in debt is
due to the debt issuances of $1.25 billion aggregate principal amount of senior notes discussed below, the assumption of $689 million of joint venture
debt related to the Frontier acquisition and $35 million in joint venture partner debt. For additional information on our long−term debt, see Note 6 to
our consolidated financial statements.
On July 26, 2010, we issued through our indirect wholly−owned subsidiary, Noble Holding International Limited, $1.25 billion aggregate
principal amount of senior notes in three separate tranches, comprising of $350 million of 3.45% Senior Notes due 2015, $500 million of 4.90% Senior
Notes due 2020, and $400 million of 6.20% Senior Notes due 2040. Proceeds, net of discount and issuance costs, totaled $1.24 billion and were used
to finance a portion of the cash consideration for the Frontier acquisition. Noble−Cayman fully and unconditionally guaranteed the notes on a senior
unsecured basis. Interest on all three series of these senior notes are payable semi−annually, in arrears, on February 1 and August 1 of each year,
beginning on February 1, 2011.
facility and a $50 million junior term loan facility. As of September 30, 2010, loans in an aggregate principal amount of $370 million were outstanding
under the Bully 1 facility. The senior term loan facility requires 20 quarterly payments of $15.75 million each, beginning at the end of the first
complete fiscal quarter after the earlier of (i) delivery and acceptance of the Noble Bully I drillship and (ii) December 30, 2010. A one−time balloon
payment of up to $60 million is due on the date of the final quarterly payment under the senior term loan facility (the “Final Payment Date”). In
addition, all outstanding advances under the senior revolving loan facility are due in full on the Final Payment Date. The junior term loan facility
requires quarterly payments in amounts based on an excess cash flow calculation defined in the Bully 1 credit agreement, commencing in the third
complete quarter following the earlier of (i) delivery and acceptance of the Noble Bully I drillship and (ii) December 30, 2010, with final payment to be
made on the Final Payment Date. The senior term loan facility and the senior revolving loan facility provide for floating interest rates that are fixed for
one−, three− or six−month periods at LIBOR plus 2.5% prior to delivery and acceptance of the Noble Bully I drillship and LIBOR plus 1.5% thereafter
(which may be reduced to LIBOR plus 1.25% if the Noble Bully I drillship has a utilization rate of at least 95% during the first year after its
acceptance). The junior term loan facility provides for floating interest rates that are fixed for one−, three− or six−month periods at LIBOR plus 3.5%
prior to delivery and acceptance of the Noble Bully I drillship and LIBOR plus 2.5% thereafter (which may be reduced to LIBOR plus 2.25% if the
Noble Bully I drillship has a utilization rate of at least 95% during the first year after its acceptance). As noted in Note 9− “Derivative Instruments and
Hedging Activities” below, the joint venture maintains interest rate swaps, with a notional amount of $280 million, to satisfy bank covenants and to
construction of the Noble Bully I drillship and its equipment, the drilling contract for the drillship, and various other rights. In addition, following
completion of construction of the Noble Bully I drillship, the credit facility is required to be secured by a first−preferred ship mortgage on the drillship.
facility and a $50 million cost overrun term loan facility. As of September 30, 2010, loans in an aggregate principal amount of $319 million were
outstanding under the Bully 2 facility. The senior term loan facility requires 28 quarterly payments beginning on the earlier of (i) a specified date that
is soon after the first full fiscal quarter to occur after commencement of operations by the Noble Bully II drillship and (ii) July 15, 2011. The final
quarterly payment will be paid together with a one−time balloon payment of up to $90 million plus any amounts outstanding under the senior
revolving loan facility on the final quarterly installment payment date. The senior term loan facility and the senior revolving loan facility provide for
floating interest rates that are fixed for three months or such other period selected by the borrower and agreed by the agent (but not to exceed three
months), at LIBOR plus 2.5% prior to the occurrence of the delivery date of the hull, thereafter at LIBOR plus 2.3%, until contract commencement,
thereafter at LIBOR plus 2.25% until the first day of the sixth anniversary of the contract commencement, and thereafter at LIBOR plus 2.4%. At
September 30, 2010, the applicable interest rate was LIBOR plus 2.3%. The secured cost overrun term loan has floating interest rates of LIBOR plus
3.5% prior to the occurrence of the contract commencement and LIBOR plus 3.25% thereafter. As noted in Note 9− “Derivative Instruments and
Hedging Activities” below, the joint venture maintains an interest rate swap, with a notional amount of $304 million, to satisfy bank covenants and to
construction of the Noble Bully II drillship and its equipment, the drilling contract for the drillship, and various other rights. In addition, following the
completion of construction of the Noble Bully II drillship, the credit facility is required to be secured by a first−preferred ship mortgage on the
drillship.
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Certain amendments to the underlying drilling contracts and the revised vessel delivery impact to loan amortization schedules require
consent from lenders to both Bully joint ventures. Pending resolution of these issues, the Bully joint ventures are restricted from drawing down
additional funds under these facilities. We believe that we have several potential alternatives for resolving these issues, as well as sources for
additional funding of the Bully construction projects, such as the notes issued by the Bully joint ventures described below. Until we are able to
implement one of these alternatives, we and our joint venture partner will have to fund the Bully joint ventures.
In September 2010, the Bully joint ventures issued notes to the joint venture partners totaling $70 million. The interest rate on these notes
is 10%, payable semi−annually in arrears and in kind on June 30 and December 31 commencing in December 2010. The purpose of these notes is to
provide additional liquidity to these joint ventures in connection with the shipyard construction of the Bully vessels. Our portion of the joint venture
partner notes, which totaled $35 million, has been eliminated in our Consolidated Balance Sheets. The non−eliminated portions of these joint venture
partner notes totaled $18 million for Bully 1 and $17 million for Bully 2 and are due in 2016 and 2018, respectively.
New Accounting Pronouncements
In June 2009, the Financial Accounting Standards Board (the “FASB”), issued guidance which expanded disclosures that a reporting entity
provides about transfers of financial assets and its effect on the financial statements. This guidance is effective for annual and interim reporting periods
beginning after November 15, 2009. The adoption of this guidance did not have a material impact on our financial condition or results of operations or
financial disclosures.
Also in June 2009, the FASB issued guidance that revises how an entity evaluates variable interest entities. This guidance is effective for
annual and interim reporting periods beginning after November 15, 2009. The adoption of this guidance did not have a material impact on our financial
condition or results of operations and cash flows.
In October 2009, the FASB issued guidance that impacts the recognition of revenue in multiple−deliverable arrangements. The guidance
establishes a selling−price hierarchy for determining the selling price of a deliverable. The goal of this guidance is to clarify disclosures related to
multiple−deliverable arrangements and to align the accounting with the underlying economics of the multiple−deliverable transaction. This guidance is
effective for fiscal years beginning on or after June 15, 2010. We are in the process of evaluating this guidance but do not believe this guidance will
have a material impact on our financial condition or results of operations and cash flows.
In January 2010, the FASB issued guidance relating to the disclosure of the fair value of assets. This guidance calls for additional
information to be given regarding the transfer of items in and out of respective categories. In addition, it requires additional disclosures regarding the
purchase, sales, issuances, and settlements of assets that are classified as level three within the FASB fair value hierarchy. This guidance is generally
effective for annual and interim periods ending after December 15, 2009. However, the disclosures about purchases, sales, issuances and settlements in
the roll−forward activity in Level 3 fair value measurements is deferred until fiscal years beginning after December 15, 2010. These additional
disclosures did not have and are not expected to have a significant impact on our financial disclosures or our financial condition.
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In February 2010, the FASB issued guidance that clarifies the disclosure of subsequent events for SEC registrants. Under this guidance a
SEC registrant can disclose the company has considered subsequent events through the date of filing with the SEC as opposed to specifically stating
the date to which subsequent events were considered. This guidance is effective upon the issuance of the guidance. Our adoption of this guidance did
not have a material impact on our financial disclosures or financial condition.
In April 2010, the FASB issued guidance that codifies the need for disclosure relating to the disallowance of various credits as a result of
the passage of both the Health Care and Education Reconciliation Act of 2010 and the Patient Protection and Affordable Care Act, which were signed
into law in March 2010. The passage of these acts does not have an impact on our tax liability, our related financial disclosures, or our financial
condition.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Market risk is the potential for loss due to a change in the value of a financial instrument as a result of fluctuations in interest rates,
currency exchange rates or equity prices, as further described below.
Interest Rate Risk
We are subject to market risk exposure related to changes in interest rates on borrowings under the Credit Facility. Interest on borrowings
under the Credit Facility is at an agreed upon percentage point spread over LIBOR, or a base rate stated in the agreement. At September 30, 2010, we
had no amounts outstanding under the Credit Facility.
As part of the Frontier acquisition, we acquired an interest in two joint ventures with an unaffiliated third party. These joint ventures
maintain interest rate swaps which are classified as cash flow hedges. The interest rate swaps relate to debt for the construction of the two Bully−class
rigs undertaken by the two joint ventures, and the hedges are designed to fix the cash paid for interest on these projects. The purpose of these hedges is
to satisfy bank covenants and to limit exposure to changes in interest rates. There are no credit risk related contingency features embedded in these
swap agreements. The aggregate notional amounts of the interest rate swaps totaled $584 million as of September 30, 2010. The notional amounts and
settlement dates for the Bully 1 interest rate swaps include $37 million settling in December 2010 and $243 million settling quarterly, with the final
amounts settling in December 2014. The notional amount and settlement dates for the Bully 2 interest rate swap is $304 million settling quarterly, with
the final amount settling in January 2018. The carrying amount of these interest rate swaps was $39 million which includes $31 million included in
liabilities as part of the purchase price allocation for the Frontier acquisition and $8 million of unrealized losses included in “Accumulated other
comprehensive loss” at September 30, 2010. Under the current hedge structure a one percent change in the LIBOR rate would lead to an additional $1
million of interest charges per year.
Foreign Currency Risk
As a multinational company, we conduct business in approximately 16 countries. Our functional currency is primarily the U.S. dollar,
which is consistent with the oil and gas industry. However, outside the United States, a portion of our expenses are incurred in local currencies.
Therefore, when the U.S. dollar weakens (strengthens) in relation to the currencies of the countries in which we operate, our expenses reported in U.S.
dollars will increase (decrease).
We are exposed to risks on future cash flows to the extent that local currency expenses exceed revenues denominated in local currency that
are other than the functional currency. To help manage this potential risk, we periodically enter into derivative instruments to manage our exposure to
fluctuations in currency exchange rates, and we may conduct hedging activities in future periods to mitigate such exposure. These contracts are
primarily accounted for as cash flow hedges, with the effective portion of changes in the fair value of the hedge recorded on the Consolidated Balance
Sheet and in Other Comprehensive Income (Loss). Amounts recorded in Other Comprehensive Income (Loss) are reclassified into earnings in the
same period or periods that the hedged item is recognized in earnings. The ineffective portion of changes in the fair value of the hedged item is
recorded directly to earnings. We have documented policies and procedures to monitor and control the use of derivative instruments. We do not engage
in derivative transactions for speculative or trading purposes, nor are we a party to leveraged derivatives; however, we do maintain certain derivatives
which were not designated for hedge accounting under FASB standards.
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Our North Sea and Brazil operations have a significant amount of their cash operating expenses payable in local currencies. To limit the
potential risk of currency fluctuation, we typically maintain short−term forward contracts settling monthly in their respective local currencies to
mitigate exchange exposure. The forward contract settlements in the remainder of 2010 represent approximately 49 percent of these forecasted local
currency requirements. The notional amount of the forward contracts outstanding, expressed in U.S. dollars, was approximately $82 million at
September 30, 2010. Total unrealized gains related to these forward contracts were $2 million as of September 30, 2010 and were recorded as part of
“Accumulated other comprehensive loss”. A ten percent change in the exchange rate for the local currencies would change the fair value of these
forward contracts by approximately $8 million.
We have entered into a firm commitment for the construction of our Noble Globetrotter I drillship. The drillship will be constructed in two
phases, with the second phase being installation and commissioning of the topside equipment. Our payment obligation for this second phase of
construction is denominated in Euros, and in order to mitigate the risk of fluctuations in foreign currency exchange rates, we entered into forward
contracts to purchase Euros. As of September 30, 2010, the aggregate notional amount of the remaining forward contracts was 30 million Euros. Each
forward contract settles in connection with required payments under the contract. We are accounting for these forward contracts as fair value hedges.
The fair market value of these derivative instruments is included in “Other current assets/liabilities” or “Other assets/liabilities,” depending on when
the forward contract is expected to be settled. Gains and losses from these fair value hedges are recognized in earnings currently along with the change
in fair value of the hedged item attributable to the risk being hedged. The fair market value of these outstanding forward contracts, which are included
in “Other current assets/liabilities” and “Other assets/liabilities,” totaled approximately $3 million at September 30, 2010 and $0.8 million at
December 31, 2009. A ten percent change in the exchange rate for the Euro would change the fair value of these forward contracts by approximately
$4 million.
As part of the Frontier acquisition we acquired an interest in two joint ventures with an unaffiliated third party. These joint ventures
maintained foreign exchange forward contracts to help mitigate the risk of currency fluctuation the Singapore dollar for the construction of the Bully
vessels taking place in a Singapore shipyard. The notional amount on these contracts totaled approximately $57 million as of September 30, 2010.
These contracts do not qualify for hedge accounting treatment under FASB standards and therefore changes in fair values are recognized as either
income or loss in our consolidated income statement. For the three and nine months ended September 30, 2010 we have recognized a gain of
$1 million related to these foreign exchange forward contracts. A ten percent change in the exchange rate for the local currencies would change the fair
value of these forward contracts and impact net income by approximately $6 million.
Market Risk
We sponsor the Noble Drilling Corporation 401(k) Savings Restoration Plan (“Restoration Plan”). The Restoration Plan is a nonqualified,
unfunded employee benefit plan under which certain highly compensated employees may elect to defer compensation in excess of amounts deferrable
under our 401(k) savings plan. The Restoration Plan has no assets, and amounts withheld for the Restoration Plan are kept by us for general corporate
purposes. The investments selected by employees and the associated returns are tracked on a phantom basis. Accordingly, we have a liability to
employees for amounts originally withheld plus phantom investment income or less phantom investment losses. We are at risk for phantom investment
income and, conversely, benefit should phantom investment losses occur. At September 30, 2010, our liability under the Restoration Plan totaled
$6 million. We previously purchased investments that closely correlate to the investment elections made by participants in the Restoration Plan in
order to mitigate the impact of the phantom investment income and losses on our consolidated financial statements. The value of these investments
held for our benefit totaled $7 million at September 30, 2010. A ten percent change in the fair value of the phantom investments would change our
liability by approximately $0.7 million. Any change in the fair value of the phantom investments would be mitigated by a change in the investments
held for our benefit.
We also have a U.S. noncontributory defined benefit pension plan that covers certain salaried employees and a U.S. noncontributory
defined benefit pension plan that covers certain hourly employees, whose initial date of employment is prior to August 1, 2004 (collectively referred to
as our “qualified U.S. plans”). These plans are governed by the Noble Drilling Corporation Retirement Trust. The benefits from these plans are based
primarily on years of service and, for the salaried plan, employees’ compensation near retirement. These plans are designed to qualify under the
Employee Retirement Income Security Act of 1974 (“ERISA”), and our funding policy is consistent with funding requirements of ERISA and other
applicable laws and regulations. We make cash contributions, or utilize credits available to us, for the qualified U.S. plans when required. The benefit
amount that can be covered by the qualified U.S. plans is limited under ERISA and the Internal Revenue Code (“IRC”) of 1986. Therefore, we
maintain an unfunded, nonqualified excess benefit plan designed to maintain benefits for all employees at the formula level in the qualified U.S. plans.
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In addition to the U.S. plans, each of Noble Drilling (Land Support) Limited, Noble Enterprises Limited and Noble Drilling (Nederland)
B.V., all indirect, wholly−owned subsidiaries of Noble−Swiss, maintains a pension plan that covers all of its salaried, non−union employees
(collectively referred to as our “non−U.S. plans”). Benefits are based on credited service and employees’ compensation near retirement, as defined by
the plans.
Changes in market asset values related to the pension plans noted above could have a material impact upon our “Consolidated Statement of
Comprehensive Income” and could result in material cash expenditures in future periods.
Item 4. Controls and Procedures
David W. Williams, Chairman, President and Chief Executive Officer of Noble−Swiss, and Thomas L. Mitchell, Senior Vice President,
Chief Financial Officer, Treasurer and Controller of Noble−Swiss, have evaluated the disclosure controls and procedures of Noble−Swiss as of the end
of the period covered by this report. On the basis of this evaluation, Mr. Williams and Mr. Mitchell have concluded that Noble−Swiss’ disclosure
controls and procedures were effective as of September 30, 2010. Noble−Swiss’ disclosure controls and procedures are designed to ensure that
information required to be disclosed by Noble−Swiss in the reports that it files with or submits to the SEC is recorded, processed, summarized and
reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to management as appropriate to allow
timely decisions regarding required disclosure.
David W. Williams, President and Chief Executive Officer of Noble−Cayman, and Dennis J. Lubojacky, Vice President and Chief
Financial Officer of Noble−Cayman, have evaluated the disclosure controls and procedures of Noble−Cayman as of the end of the period covered by
this report. On the basis of this evaluation, Mr. Williams and Mr. Lubojacky have concluded that Noble−Cayman’s disclosure controls and procedures
were effective as of September 30, 2010. Noble−Cayman’s disclosure controls and procedures are designed to ensure that information required to be
disclosed by Noble−Cayman in the reports that it files with or submits to the SEC is recorded, processed, summarized and reported within the time
periods specified in the SEC’s rules and forms and is accumulated and communicated to management as appropriate to allow timely decisions
regarding required disclosure.
There was no change in either Noble−Swiss’ or Noble−Cayman’s internal control over financial reporting that occurred during the quarter
ended September 30, 2010 that has materially affected, or is reasonably likely to materially affect, the internal control over financial reporting of each
of Noble−Swiss or Noble−Cayman, respectively.
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PART II. OTHER INFORMATION

Item 1. Legal Proceedings
Information regarding legal proceedings is set forth in Note 11 to our consolidated financial statements included in Item 1 of Part I of this
Quarterly Report on Form 10−Q and is incorporated herein by reference.
Item 1A. Risk Factors
Risks Relating to Our Business
The risk factors below update and supplement the risks described under “Risk Factors Relating to Our Business” in Part I, Item 1A, “Risk
Factors,” of our Annual Report on Form 10−K for the year ended December 31, 2009, and in Part II, Item 1A, “Risk Factors,” of our Quarterly Report
on Form 10−Q for the quarter ended June 30, 2010, and should be considered together with the risk factors described in that report.
The U.S. governmental, regulatory, and industry response to the Deepwater Horizon drilling rig accident and resulting oil spill could have a
prolonged and material adverse impact on our U.S. Gulf of Mexico operations.
Subsequent to the April 20, 2010 fire and explosion on the Deepwater Horizon, a competitor’s drilling rig in the U.S. Gulf of Mexico, U.S.
governmental authorities implemented a moratorium on and suspension of specified types of drilling activities in the U.S. Gulf of Mexico. Judicial
challenges were made to the initial actions of the U.S. government, and in July 2010 the government issued a revised moratorium on and suspension of
drilling. On October 12, 2010, the U.S. government lifted the moratorium following adoption of new regulations including a drilling safety rule and a
workplace safety rule, each of which imposed multiple obligations relating to offshore drilling operations. These obligations relate to, among other
things, additional certifications and verifications relating to compliance with applicable regulations; compatibility of blowout preventers with drilling
rigs and well design; third−party inspections and design review of blowout preventers; testing of casing installations; minimum requirements for
personnel operating blowout preventers; and training in deepwater well control.
In addition, the U.S. government has indicated that before any new deepwater drilling resumes, (i) operators much demonstrate that
containment resources are available promptly in the event of a deepwater blowout, (ii) the chief executive officer of each operator seeking to perform
deepwater drilling must certify that the operator has complied with all applicable regulations and (iii) the Bureau of Ocean Energy Management,
Regulation and Enforcement will conduct inspections of each deepwater drilling operation for compliance with the applicable regulations.
There have been and may continue to be judicial and other challenges made with respect to some of the government imposed restrictions
on U.S. Gulf of Mexico drilling operations. However, we cannot predict (1) how those challenges will be resolved, (2) how the resolution of those
challenges may affect the scope or duration of the government−imposed restrictions or (3) the actions the U.S. government may take, whether in
response to those challenges or otherwise.
Our existing U.S. Gulf of Mexico operations have been and will continue to be negatively impacted by the events and governmental
actions described above. U.S. governmental restrictions and regulations may result in a number of our rigs and those of others being moved, or
becoming available for moving, to locations outside of the U.S. Gulf of Mexico, which could potentially reduce global dayrates and negatively affect
our ability to contract our floating rigs that are currently uncontracted or coming off contract. In addition, U.S. or other governmental authorities could
implement additional regulations concerning licensing, taxation, equipment specifications and training requirements that could increase the costs of
our operations. Additionally, increased costs for our customers’ operations, along with permitting delays, could negatively affect the economics of
currently planned or future exploration and development activity and result in a reduction in demand for our services. Furthermore, due to the
Deepwater Horizon accident and resulting oil spill, insurance costs across the industry could increase, and certain insurance may be less available or
not available at all, which could negatively affect us over time.
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At this time, we cannot predict for how long or to what extent our operations will be adversely impacted by the governmental, regulatory
and industry response to the Deepwater Horizon drilling rig accident and resulting oil spill. At this time, we cannot predict:
• the extent of additional or substitute regulations and restrictions that may be imposed on drilling operations in the U.S. Gulf of Mexico,
• the extent to which drilling operations subsequent to the moratorium period will be impacted or the delay in issuing permits for new or
continued drilling,
• the cost or availability of relevant insurance coverage,
• the extent to which customers may seek to terminate existing contracts or the demand by customers for new or renewed drilling contracts,
• the availability of, or delays in delivery of, equipment required to comply with any new regulations,
• the effect of new regulations and restrictions on our costs and the costs for the operations of our customers, or
• the effect of the developments described above on demand for our services in the U.S. Gulf of Mexico.
Depending on their duration and extent, these and related developments could have a material adverse affect on our results of operations,
cash flows and liquidity relating to the U.S. Gulf of Mexico.
We could be adversely affected by violations of applicable anti−corruption laws and our failure to comply with the terms of our settlement
agreements with the DOJ and SEC.
We operate in a number of countries throughout the world, including countries known to have a reputation for corruption. We are
committed to doing business in accordance with applicable anti−corruption laws and our code of business conduct and ethics. We are subject,
however, to the risk that we, our affiliated entities or their respective officers, directors, employees and agents may take action determined to be in
violation of such anti−corruption laws, including the U.S. Foreign Corrupt Practices Act of 1977 (“FCPA”). Any violation of the FCPA or other
applicable anti−corruption laws could result in substantial fines, sanctions, civil and/or criminal penalties and curtailment of operations in certain
jurisdictions and might adversely affect our business, results of operations or financial condition. In addition, actual or alleged violations could damage
our reputation and ability to do business. Further, detecting, investigating, and resolving actual or alleged violations is expensive and can consume
significant time and attention of our senior management.
In 2007, we began an internal investigation of the legality under the FCPA of certain activities in Nigeria. In November 2010, we finalized
settlements of this matter with each of the SEC and the DOJ. Under the settlements with the DOJ and SEC, we agreed to, among other things, pay
certain fines and interest and disgorge certain profits, cooperate with the DOJ, comply with the FCPA, comply with certain self−reporting and annual
reporting obligations and comply with an injunction restraining us from violating the anti−bribery, books and records and internal controls provisions
of the FCPA. [The impact of the settlements on our ongoing operations could include limits on revenue growth and increases in operating costs.] Our
ability to comply with the terms of the settlements is dependent on the success of our ongoing compliance program, including our ability to continue to
manage our agents and supervise, train and retain competent employees, and the efforts of our employees to comply with applicable law and our code
of business conduct and ethics. Though these settlements concluded the investigations of the SEC and the DOJ, we could be investigated by relevant
foreign jurisdictions, and we could face fines or other sanctions in those jurisdictions. Any sanctions we may incur as a result of any such investigation
could damage our reputation and result in substantial fines, sanctions, civil and/or criminal penalties and curtailment of operations in certain
jurisdictions and might adversely affect our business, results of operations or financial condition. Further, resolving any such investigation could be
expensive and consume significant time and attention of our senior management.
We are substantially dependent on our customers Shell and Petrobras, and the loss of either customer could have a material adverse effect on our
financial condition and results of operations.
We estimate Shell and Petrobras represents more than 50% and 20%, respectively, of our backlog. This concentration of customers
increases the risks associated with any possible termination or nonperformance of contracts by either customer and our exposure to credit risk of either
customer. If either of these customers were to terminate or fail to perform their obligations under their contracts and we were not able to find other
customers for the affected drilling units promptly, our financial condition and results of operations could be materially and adversely affected.
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table sets forth for the periods indicated certain information with respect to purchases of shares by Noble−Swiss:
Total Number of Maximum Number

Shares Purchased of Shares that May
Total Number Average as Part of Publicly Yet Be Purchased
of Shares Price Paid Announced Plans Under the Plans
Period Purchased per Share or Programs or Programs (1)
July 2010 19,639 $ 31.95(2) — 10,769,891
August 2010 4,000,728 $ 32.67(3) 4,000,000 6,769,891
September 2010 — $ — — 6,769,891
(1) All share purchases made in the open market and were
pursuant to the share repurchase program which our Board of
Directors authorized and adopted. Our repurchase program has
no date of expiration.
(2) Includes 19,639 shares at an average price of $31.95 per share

surrendered by employees for withholding taxes payable upon
the vesting of restricted stock.
(3) Includes 728 shares at an average price of $32.75 per share

surrendered by employees for withholding taxes payable upon
the vesting of restricted stock.
Item 6. Exhibits
The information required by this Item 6 is set forth in the Index to Exhibits accompanying this Quarterly Report on Form 10−Q and is
incorporated herein by reference.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
Noble Corporation, a Swiss corporation
/s/ David W. Williams November 9, 2010
David W. Williams Date

Chairman, President and Chief Executive Officer
(Principal Executive Officer)
/s/ Thomas L. Mitchell

Thomas L. Mitchell
Senior Vice President, Chief Financial Officer, Treasurer and Controller
(Principal Financial and Accounting Officer)
Noble Corporation, a Cayman Islands company
/s/ David W. Williams November 9, 2010
David W. Williams Date

President and Chief Executive Officer
(Principal Executive Officer)
/s/ Dennis J. Lubojacky

Dennis J. Lubojacky
Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
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Index to Exhibits
Exhibit
Number Exhibit
2.1 Agreement and Plan of Merger, Reorganization and Consolidation, dated as of December 19, 2008, among Noble Corporation, a
Swiss corporation (“Noble−Swiss”), Noble Corporation, a Cayman Islands company (“Noble−Cayman”), and Noble Cayman
Acquisition Ltd. (filed as Exhibit 1.1 to Noble−Cayman’s Current Report on Form 8−K filed on December 22, 2008 and
incorporated herein by reference).
2.2 Amendment No. 1 to Agreement and Plan of Merger, Reorganization and Consolidation, dated as of February 4, 2009, among
Noble−Swiss, Noble−Cayman and Noble Cayman Acquisition Ltd. (filed as Exhibit 2.2 to Noble−Cayman’s Current Report on
Form 8−K filed on February 4, 2009 and incorporated herein by reference).
2.3 Agreement and Plan of Merger, dated as of June 27, 2010, among Noble−Swiss, Noble AM Merger Co., a Cayman Islands
company, Frontier Holdings Limited, a Cayman Islands company (“Frontier”), and certain of Frontier’s shareholders (filed as
Exhibit 2.1 to Noble−Swiss’ and Noble−Cayman’s Current Report on Form 8−K filed on June 28, 2010 and incorporated herein
by reference).
3.1 Articles of Association of Noble−Swiss.
3.2 By−laws of Noble−Swiss (filed as Exhibit 3.2 to Noble−Swiss’ Current Report on Form 8−K filed on March 27, 2009 and
incorporated herein by reference).
3.3 Memorandum and Articles of Association of Noble−Cayman (filed as Exhibit 3.1 to Noble−Cayman’s Current Report on
Form 8−K filed on March 30, 2009 and incorporated herein by reference).
4.1 Second Supplemental Indenture dated as of July 26, 2010 (filed as Exhibit 4.2 to Noble−Swiss’ and Noble−Cayman’s Current
Report on Form 8−K filed on July 26, 2010 and incorporated herein by reference).
4.2 Specimen Note for the 3.45% Senior Notes due 2015 of Noble Holding International Limited dated as of July 26, 2010 (filed as
Exhibit 4.3 to Noble Swiss’ and Noble−Cayman’s Current Report on Form 8−K filed on July 26, 2010 and incorporated herein
by reference).
by reference).
by reference).
4.5 Term Loan and Credit Facility Agreement, dated December 21, 2007, by and among Bully 1, Ltd., the Lenders as set forth
therein, Standard Chartered Bank, Bank of Scotland PLC and NIBC Bank N.V. as arrangers, and NIBC Bank N.V. as agent and
security trustee for the Lenders, as amended by Amendment No. 1 to Term Loan and Credit Facility Agreement, dated
February 12, 2008 and Amendment No. 2 and Consent to Term Loan and Credit Facility Agreement, dated July 28, 2010 (filed
as Exhibit 4.1 to Noble Swiss’ and Noble Cayman’s Current Report on Form 8−K on August 2, 2010 and incorporated herein by
reference).
4.6 Term Loan and Revolving Loan Credit Facility Agreement, dated as of October 21, 2008, and amended and restated as of
October 9, 2009, among Bully 2 Ltd., Standard Chartered Bank (as administrative agent and collateral agent) and the Lenders
party thereto, as amended by the Omnibus Amendment and Consent Agreement, dated as of July 28, 2010, between Bully 2,
Ltd. and Standard Chartered Bank (as administrative agent acting on the behalf of the Majority Lenders and as collateral agent
for the Secured Parties) (filed as Exhibit 4.2 to Noble Swiss’ and Noble Cayman’s Current Report on Form 8−K on August 2,
2010 and incorporated herein by reference).
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Exhibit
Number Exhibit
31.1 Certification of David W. Williams pursuant to the U.S. Securities Exchange Act of 1934, as amended, Rule 13a−14(a) or
Rule 15d−14(a), for Noble−Swiss and for Noble−Cayman.
31.2 Certification of Thomas L. Mitchell pursuant to the U.S. Securities Exchange Act of 1934, as amended, Rule 13a−14(a) or
Rule 15d−14(a), for Noble−Swiss.
31.3 Certification of Dennis J. Lubojacky pursuant to the U.S. Securities Exchange Act of 1934, as amended, Rule 13a−14(a) or
Rule 15d−14(a), for Noble−Cayman.
32.1+ Certification of David W. Williams pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes−Oxley Act of 2002, for Noble−Swiss and for Noble−Cayman.
32.2+ Certification of Thomas L. Mitchell pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes−Oxley Act of 2002, for Noble−Swiss.
32.3+ Certification of Dennis J. Lubojacky pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the
Sarbanes−Oxley Act of 2002, for Noble−Cayman.
101 Interactive Data File
+ Furnished in accordance with Item 601(b)(32)(ii) of

Regulation S−K.
69
Exhibit 3.1
Statuten Articles of Association
der of
Noble Corporation Noble Corporation
mit Sitz in Baar with registered office in Baar
I. Allgemeine Bestimmungen I. General Provisions
Artikel 1: Firma, Sitz, Dauer Article 1: Corporate Name, Registered Office, Duration
Unter der Firma Under the corporate name
Noble Corporation Noble Corporation
besteht eine Aktiengesellschaft (die “Gesellschaft”) gemäss Artikel 620 a company (the “Company”) exists pursuant to article 620 et seq. of the
ff. des Schweizerischen Obligationenrechts (“OR”) mit Sitz in Baar, Swiss Code of Obligations (“CO”) with its registered office in Baar,
Kanton Zug, Schweiz. Canton of Zug, Switzerland.
Artikel 2: Zweck Article 2: Purpose

1 1
Der Zweck der Gesellschaft ist der Erwerb, das Halten, die The purpose of the Company is to acquire, hold, manage, exploit and sell,
Verwaltung, die Verwertung und die Veräusserung von direkten und directly or indirectly, participations in Swiss and foreign businesses, in
indirekten Beteiligungen an Unternehmen im In− und Ausland, particular, but without limitation, in businesses that are involved in the
insbesondere Unternehmen, die in der Erkundung und Förderung von exploration for and production of natural resources, such as offshore
Bodenschätzen, wie der Erbringung von Dienstleistungen im contract drilling of oil and natural gas wells, labor contract drilling services
Zusammenhang mit Offshore Bohrungen nach Öl und Naturgas, and engineering and consulting services, and to provide financing for this
Dienstleistungen im Zusammenhang mit Arbeitsverträgen für purpose.
Bohrdienstleistungen tätig sind, Ingenieur− und
Beratungsdienstleistungen erbringen und die Finanzierung für solche
Zwecke bereitstellen.
2 2
Die Gesellschaft kann Zweigniederlassungen und The Company may set up branch offices and subsidiaries in Switzerland
Tochtergesellschaften im In− und Ausland errichten und Grundstücke and abroad and may acquire, hold, manage, mortgage and sell real estate
und gewerbliche Schutzrechte im In− und Ausland erwerben, halten, and intellectual property rights in Switzerland and abroad.
verwalten, hypothekarisch belasten und veräussern.
3 3
Die Gesellschaft kann jede Art von finanzieller Unterstützung für und The Company may provide any kind of financial assistance, including
an Gruppengesellschaften gewähren, einschliesslich der Leistung von guarantees, to and for group companies. The Company may engage in any
Garantien. Die Gesellschaft kann alle kommerziellen Tätigkeiten type of commercial activity that is directly or indirectly related to its
ausüben, welche direkt oder indirekt mit dem Zweck der Gesellschaft purpose and take any measures it determines appropriate to promote the
im Zusammenhang stehen, und alle Massnahmen ergreifen, die den purpose of the Company, or that are connected with its purpose.
Gesellschaftszweck angemessen zu fördern scheinen oder mit diesem
im Zusammenhang stehen.
Artikel 3: Dauer Article 3: Duration
Die Dauer der Gesellschaft ist unbeschränkt. The duration of the Company is unlimited.
II. Aktienkapital II. Share Capital
Artikel 4: Anzahl Aktien, Nominalwert, Art Article 4: Number of Shares, Par Value, Type
Das Aktienkapital der Gesellschaft beträgt Schweizer Franken The share capital of the Company is Swiss Francs 1,121,638,713.58 and is
1’121’638’713.58 und ist eingeteilt in 276’265’693 auf den Namen divided into 276,265,693 fully paid−up registered shares. Each registered
lautende Aktien im Nennwert von Schweizer Franken 4.06 je Aktie share has a par value of Swiss Francs 4.06 (each such registered share
(jede Namenaktie nachfolgend bezeichnet als “Aktie” bzw. zusammen hereinafter a “Share” and collectively the “Shares”).
die “Aktien”). Das Aktienkapital ist vollständig liberiert.
Artikel 5: Anerkennung der Statuten Article 5: Recognition of Articles
Jede Ausübung von Aktionärsrechten schliesst die Anerkennung der Any exercise of shareholders’ rights automatically comprises recognition
Gesellschaftsstatuten in der jeweils gültigen Fassung in sich ein. of the version of these Articles of Association in force at the time.
Artikel 6: Genehmigtes Aktienkapital Article 6: Authorized Share Capital

1 1
Der Verwaltungsrat ist ermächtigt, das Aktienkapital jederzeit bis The Board of Directors is authorized to increase the share capital no later
spätestens zum 26. März 2011, im Maximalbetrag von Schweizer than March 26, 2011, by a maximum amount of Swiss Francs
Franken 560’819’354.76 durch Ausgabe von höchstens 138’132’846 560,819,354.76 by issuing a maximum of 138,132,846 fully paid−up
vollständig zu liberierenden Aktien mit einem Nennwert von je Shares with a par value of Swiss Francs 4.06 each. An increase of the share
Schweizer Franken 4.06 zu erhöhen. Eine Erhöhung des Aktienkapitals capital (i) by means of an offering underwritten by a financial institution, a
(i) auf dem Weg einer Festübernahme durch eine Bank, ein syndicate of financial institutions or another third party or third parties,
Bankenkonsortium oder Dritte und eines anschliessenden Angebots an followed by an offer to the then−existing shareholders of the Company,
die bisherigen Aktionäre sowie (ii) in Teilbeträgen ist zulässig. and (ii) in partial amounts, shall be permissible.
2
2 2
Der Verwaltungsrat legt den Zeitpunkt der Ausgabe der neuen Aktien, The Board of Directors shall determine the time of the issuance, the issue
deren Ausgabepreis, die Art der Liberierung, den Beginn der price, the manner in which the new Shares have to be paid−up, the date
Dividendenberechtigung, die Bedingungen für die Ausübung der from which the Shares carry the right to dividends, the conditions for the
Bezugsrechte sowie die Zuteilung der Bezugsrechte, welche nicht exercise of the preemptive rights and the allotment of preemptive rights
ausgeübt wurden, fest. Nicht ausgeübte Bezugsrechte kann der that have not been exercised. The Board of Directors may allow the
Verwaltungsrat verfallen lassen, oder er kann diese bzw. die Aktien, für preemptive rights that have not been exercised to expire, or it may place
welche Bezugsrechte eingeräumt, aber nicht ausgeübt worden sind, zu such rights or Shares, the preemptive rights of which have not been
Marktkonditionen platzieren oder anderweitig im Interesse der exercised, at market conditions or use them otherwise in the interest of the
Gesellschaft verwenden. Company.
3 3
Der Verwaltungsrat ist ermächtigt, die Bezugsrechte der Aktionäre aus The Board of Directors is authorized to withdraw or limit the preemptive
wichtigen Gründen zu entziehen oder zu beschränken und Dritten rights of the shareholders and to allot them to third parties for important
zuzuweisen, insbesondere: reasons, including:
(a) wenn der Ausgabebetrag der neuen Aktien unter Berücksichtigung (a) if the issue price of the new Shares is determined by reference to the
des Marktpreises festgesetzt wird; oder market price; or
(b) für die Übernahme von Unternehmen, Unternehmensteilen oder (b) for the acquisition of an enterprise, part(s) of an enterprise or
Beteiligungen oder für die Finanzierung oder Refinanzierung participations, or for the financing or refinancing of any of such
solcher Transaktionen oder die Finanzierung von neuen transactions, or for the financing of new investment plans of the
Investitionsvorhaben der Gesellschaft; oder Company; or
(c) zum Zwecke der Erweiterung des Aktionärskreises in bestimmten (c) for purposes of broadening the shareholder constituency of the
Finanz− oder Investoren−Märkten, zur Beteiligung von Company in certain financial or investor markets, for purposes of the
strategischen Partnern, oder im Zusammenhang mit der Kotierung participation of strategic partners, or in connection with the listing of
von neuen Aktien an inländischen oder ausländischen Börsen; oder new Shares on domestic or foreign stock exchanges; or
(d) für die Einräumung einer Mehrzuteilungsoption (Greenshoe) von (d) for purposes of granting an over−allotment option (Greenshoe) of up to
bis zu 20% der zu platzierenden oder zu verkaufenden Aktien an 20% of the total number of Shares in a placement or sale of Shares to
die betreffenden Erstkäufer oder Festübernehmer im Rahmen einer the respective initial purchaser(s) or underwriter(s); or
Aktienplatzierung oder eines Aktienverkaufs; oder
(e) für die Beteiligung von: (e) for the participation of:
i. Mitgliedern des Verwaltungsrates, Mitgliedern der i. members of the Board of Directors, members of the executive
Geschäftsleitung und Mitarbeitern, die für die Gesellschaft management and employees of the Company or any of its group
oder eine Gruppengesellschaft tätig sind, vorausgesetzt, dass companies, always provided that the total amount of such Shares
der Gesamtbetrag der unter dieser Bestimmung (e)(i) to be issued under this clause (e)(i) shall not exceed Swiss
ausgegebenen Aktien einen Betrag von Schweizer Franken Francs 40,600,000.00, divided into 10,000,000 fully paid−up
40’600’000.00, eingeteilt in 10’000’000 vollständig zu Shares, with a par value of Swiss Francs 4.06 per Share; and
liberierende Aktien mit einem Nennwert von je Schweizer
Franken 4.06 nicht übersteigt; und
3
ii. Vertragspartnern oder Beratern oder anderen Personen, die für ii. contractors or consultants of the Company or any of its group
die Gesellschaft oder eine Gruppengesellschaft Leistungen companies or any other persons performing services for the
erbringen, vorausgesetzt, dass der Gesamtbetrag der unter benefit of the Company or any of its group companies, always
dieser Bestimmung(e)(ii) ausgegebenen Aktien einen Betrag provided that the total amount of such Shares to be issued under
von Schweizer Franken 4’060’000.00, eingeteilt in 1’000’000 this clause (e)(ii) shall not exceed Swiss Francs 4,060,000.00,
vollständig zu liberierende Aktien mit einem Nennwert von je divided into 1,000,000 fully paid−up Shares, with a par value of
Schweizer Franken 4.06 nicht übersteigt; oder Swiss Francs 4.06 per Share; or
(f) wenn ein Aktionär oder eine Gruppe von in gemeinsamer Absprache (f) following a shareholder or a group of shareholders acting in concert
handelnden Aktionären mehr als 15% des im Handelsregister having accumulated shareholdings in excess of 15% of the share
eingetragenen Aktienkapitals der Gesellschaft (die eigenen Aktien capital registered in the Commercial Register (excluding treasury
der Gesellschaft davon ausgenommen) auf sich vereinigt hat, ohne shares) without having submitted to the other shareholders a takeover
den übrigen Aktionären ein vom Verwaltungsrat empfohlenes offer recommended by the Board of Directors, or for the defense of an
Übernahmeangebot zu unterbreiten; oder zur Abwehr eines actual, threatened or potential takeover bid, in relation to which the
unterbreiteten, angedrohten oder potentiellen Board of Directors, upon consultation with an independent financial
Übernahmeangebotes, welches der Verwaltungsrat, nach adviser retained by it, has not recommended to the shareholders
Konsultation mit einem von ihm beigezogenen unabhängigen acceptance on the basis that the Board of Directors has not found the
Finanzberater, den Aktionären nicht zur Annahme empfohlen hat, takeover bid to be fair to the shareholders from a financial point of
weil der Verwaltungsrat das Übernahmeangebot in finanzieller view.
Hinsicht gegenüber den Aktionären nicht als fair beurteilt hat.
4 4
Die neuen Aktien unterliegen den Eintragungsbeschränkungen in das The new Shares shall be subject to the limitations for registration in the
Aktienbuch gemäss Artikel 9 und 10 dieser Statuten. share register pursuant to Articles 9 and 10 of these Articles of Association.
4
Artikel 7: Bedingtes Aktienkapital Article 7: Conditional Share Capital
1 1
Das Aktienkapital kann sich durch Ausgabe von höchstens The share capital may be increased in an amount not to exceed Swiss
138’132’846 voll zu liberierenden Aktien im Nennwert von je Francs 560,819,354.76 through the issuance of up to 138,132,846 fully
Schweizer Franken 4.06 um höchstens Schweizer Franken paid−up Shares with a par value of Swiss Francs 4.06 per Share through:
560’819’354.76 erhöhen durch:
(a) die Ausübung von Wandel−, Tausch−, Options−, Bezugs− oder (a) the exercise of conversion, exchange, option, warrant or similar rights
ähnlichen Rechten auf den Bezug von Aktien (nachfolgend die for the subscription of Shares (hereinafter the “Rights”) granted to
“Umwandlungsrechte”), welche Dritten oder Aktionären im third parties or shareholders in connection with bonds, options,
Zusammenhang mit auf nationalen oder internationalen warrants or other securities newly or already issued in national or
Kapitalmärkten neu oder bereits begebenen Anleihensobligationen, international capital markets or new or already existing contractual
Optionen, Warrants oder anderen Finanzmarktinstrumenten oder obligations by or of the Company, one of its group companies, or any
neuen oder bereits bestehenden vertraglichen Verpflichtungen der of their respective predecessors (hereinafter collectively, the
Gesellschaft, einer ihrer Gruppengesellschaften oder ihrer “Rights−Bearing Obligations”); the total amount of Shares that may
Rechtsvorgänger eingeräumt werden (nachfolgend zusammen, “die be issued under such Rights shall not exceed Swiss Francs
mit Umwandlungsrechten verbundenen Obligationen”); dabei darf 536,459,354.76, divided into 132,132,846 fully paid−up Shares with a
der Gesamtbetrag der ausgegebenen Aktien einen Betrag von par value of Swiss Francs 4.06 per Share; and/or
Schweizer Franken 536’459’354.76, eingeteilt in 132’132’846
vollständig zu liberierende Aktien mit einem Nennwert von je
Schweizer Franken 4.06 nicht übersteigen; und/oder
(b) die Ausgabe von mit Umwandlungsrechten verbundenen (b) the issuance of Rights−Bearing Obligations granted to:
Obligationen an:
i. die Mitglieder des Verwaltungsrates, Mitglieder der i. the members of the Board of Directors, members of the executive
Geschäftsleitung und Arbeitnehmer, die für die Gesellschaft management and employees of the Company or any of its group
oder eine Gruppengesellschaft tätig sind; vorausgesetzt, dass companies, always provided that the total amount of such Shares
der Gesamtbetrag der unter dieser Bestimmung (b)(i) to be issued under this clause (b)(i) shall not exceed Swiss
ausgegebenen Aktien einen Betrag von Schweizer Franken Francs 20,300,000.00, divided into 5,000,000 fully paid−up
20’300’000.00, eingeteilt in 5’000’000 vollständig zu Shares, with a par value of Swiss Francs 4.06 per Share; or
liberierende Aktien mit einem Nennwert von je Schweizer
Franken 4.06 nicht übersteigt; oder
ii. Vertragspartner oder Berater oder andere Personen, die für die ii. contractors or consultants of the Company or any of its group
Gesellschaft oder eine Gruppengesellschaft Leistungen companies or any other persons providing services to the
erbringen, vorausgesetzt, dass der Gesamtbetrag der unter Company or its group companies, always provided that the total
dieser Bestimmung (b)(ii) ausgegebenen Aktien einen Betrag amount of such Shares to be issued under this clause (b)(ii) shall
von Schweizer Franken 4’060’000.00, eingeteilt in 1’000’000 not exceed Swiss Francs 4,060,000.00, divided into 1,000,000
vollständig zu liberierende Aktien mit einem Nennwert von je fully paid−up Shares, with a par value of Swiss Francs 4.06 per
Schweizer Franken 4.06 nicht übersteigt. Share.
5
2 2
Der Verwaltungsrat ist ermächtigt, die Vorwegzeichnungsrechte der The Board of Directors shall be authorized to withdraw or limit the
Aktionäre im Zusammenhang mit der Ausgabe von mit preferential subscription rights in connection with the issuance by the
Umwandlungsrechten verbundenen Obligationen durch die Gesellschaft Company, one of its group companies or any of their respective
oder eine ihrer Gruppengesellschaften aus wichtigen Gründen zu predecessors of Rights−Bearing Obligations for important reasons,
beschränken oder aufzuheben, falls (1) die Ausgabe zum Zwecke der including if (1) the issuance is for the acquisition of an enterprise, part(s)
Übernahme von Unternehmen, Unternehmensteilen, für Beteiligungen of an enterprise or participations, or for the financing or refinancing of any
oder zum Zwecke der Finanzierung oder Refinanzierung derartiger of such transactions or (2) the issuance occurs in national or international
Transaktionen oder (2) die Ausgabe auf nationalen oder internationalen capital markets or through a private placement.
Finanzmärkten oder im Rahmen einer Privatplatzierung erfolgt.
3 3
Wird das Vorwegzeichnungsrecht durch den Verwaltungsrat If the Board of Directors limits or withdraws the preferential subscription
beschränkt oder aufgehoben, gilt Folgendes: right, then the following shall apply:
(a) Die mit Umwandlungsrechten verbundenen Obligationen sind zu (a) the Rights−Bearing Obligations shall be issued or entered into at
den jeweils marktüblichen Bedingungen auszugeben oder market conditions; and
einzugehen; und
(b) der Umwandlungs−, Tausch− oder sonstige Ausübungspreis der mit (b) the conversion, exchange or exercise price of the Rights−Bearing
Umwandlungsrechten verbundenen Obligationen ist unter Obligations shall be set at market conditions prevailing at the date on
Berücksichtigung jeweils marktüblichen Bedingungen im which the Rights−Bearing Obligations are issued; and
Zeitpunkt der Ausgabe der mit Umwandlungsrechten verbundenen
Obligationen festzusetzen; und
(c) die Umwandlungsrechte sind höchstens während 30 Jahren ab dem (c) the Rights may only be exercised during a maximum period of 30 years
jeweiligen Zeitpunkt der Ausgabe der betreffenden mit from the date of the issuance of the relevant Rights−Bearing
Umwandlungsrechten verbundenen Obligationen ausübbar. Obligation.
6
4 4
Im Zusammenhang mit der Ausübung von Umwandlungsrechten in The preemptive rights of the shareholders shall be excluded in connection
Aktien, ist das Bezugsrecht der Aktionäre entsprechend den with the conversion, exchange or exercise of such Rights into Shares
Bedingungen der mit Umwandlungsrechten verbundenen Obligationen pursuant to the terms of the relevant Rights−Bearing Obligation. The then
ausgeschlossen. Zum Bezug der neuen Aktien, die bei Ausübung der current owners of such Rights−Bearing Obligation shall be entitled to
Wandel−, Tausch− oder anderer Ausübungsrechte ausgegeben werden, subscribe for the new Shares issued upon conversion, exchange or exercise
sind die jeweiligen Inhaber der mit Umwandlungsrechten verbundenen of the related Right. The conditions of the Rights−Bearing Obligations
Obligationen berechtigt. Die Bedingungen der mit shall be determined by the Board of Directors, subject to Article 7 para. 3
Umwandlungsrechten verbundenen Obligationen sind unter of these Articles of Association.
Berücksichtigung von Artikel 7 Absatz 3 dieser Statuten durch den
Verwaltungsrat festzulegen.
5 5
Das Vorwegzeichnungsrecht wie auch das Bezugsrecht der Aktionäre The preferential subscription rights and preemptive rights of the
ist bei der Ausgabe von mit Umwandlungsrechten verbundenen shareholders shall be excluded in connection with the issuance of any
Obligationen gemäss Artikel 7 Absatz 1(b) dieser Statuten, oder bei Rights−Bearing Obligations pursuant to Article 7 para. 1(b) of these
Ausgabe neuer Aktien infolge Ausübung solcher Umwandlungsrechte Articles of Association or, upon exercise of the Rights, the newly issued
ausgeschlossen. Die Ausgabe von Aktien oder mit Shares. Shares or Rights−Bearing Obligations may be issued to any of the
Umwandlungsrechten verbundenen Obligationen an die in Artikel 7 persons referred to in Article 7 para. 1(b) of these Articles of Association
Absatz 1(b) dieser Statuten genannten Personen erfolgt gemäss einem in accordance with one or more benefit or incentive plans of the Company.
oder mehreren Beteiligungsplänen der Gesellschaft. Die Ausgabe von Shares may be issued to any of the persons referred to in Article 7 para.
Aktien an die in Artikel 7 Absatz 1(b) dieser Statuten genannten 1(b) of these Articles of Association at a price lower than the current
Personen kann zu einem Preis erfolgen, der unter dem Kurs der Börse market price quoted on any securities exchange on which the Shares are
liegt, an der die Aktien gehandelt werden, muss aber mindestens zum traded, but at least at par value.
Nennwert erfolgen.
6 6
Die Aktien, welche über die Ausübung von Umwandlungsrechten The Shares acquired through the exercise of Rights shall be subject to the
erworben werden, unterliegen den Eintragungsbeschränkungen in das limitations for registration in the share register pursuant to Articles 9 and
Aktienbuch gemäss Artikel 9 und 10 dieser Statuten. 10 of these Articles of Association.
Artikel 8: Aktienzertifikate Article 8: Share Certificates

1 1
Ein Aktionär hat nur dann Anspruch auf die Ausgabe eines A shareholder shall be entitled to a Share certificate only if the Board of
Aktienzertifikates, wenn der Verwaltungsrat die Ausgabe von Directors resolves that Share certificates shall be issued. Share certificates,
Aktienzertifikaten beschliesst. Aktienzertifikate werden in der vom if any, shall be in such form as the Board of Directors may determine. A
Verwaltungsrat festgelegten Form ausgegeben. Ein Aktionär kann shareholder may at any time request an attestation of the number of Shares
jederzeit eine Bescheinigung über die Anzahl der von ihm gehaltenen held by it.
Aktien verlangen.
2 2
Die Gesellschaft kann jederzeit auf die Ausgabe und Aushändigung The Company may dispense with the obligation to issue and deliver
von Zertifikaten verzichten und mit Zustimmung des Aktionärs certificates, and may, with the consent of the shareholder, cancel without
ausgegebene Urkunden, die bei ihr eingeliefert werden, ersatzlos replacement issued certificates delivered to the Company.
annullieren.
7
3 3
Nicht−verurkundete Aktien und die damit verbundenen Rechte können Uncertificated Shares and the uncertificated rights deriving from them
nur durch schriftliche Zession übertragen werden. Eine solche Zession may only be transferred by written assignment, such assignment being
bedarf zur Wirksamkeit gegenüber der Gesellschaft der Anzeige an die valid only if the Company is notified. If uncertificated Shares are
Gesellschaft. Werden nicht−verurkundete Aktien im Auftrag des administered on behalf of a shareholder by a transfer agent, trust company,
Aktionärs von einem Transfer Agenten, einer Trust Gesellschaft, Bank bank or similar entity (the “Transfer Agent”), such Shares and the rights
oder einer ähnlichen Gesellschaft verwaltet (der “Transfer Agent”), so deriving from them may be transferred only with the cooperation of the
können diese Aktien und die damit verbundenen Rechte nur unter Transfer Agent.
Mitwirkung des Transfer Agenten übertragen werden.
4 4
Werden nicht−verurkundete Aktien zugunsten von einer anderen If uncertificated Shares are pledged in favor of any Person other than the
Zivilrechtlichen Person als dem Transfer Agenten verpfändet, so ist zur Transfer Agent, notification to such Transfer Agent shall be required for
Gültigkeit der Verpfändung eine Anzeige an den Transfer Agenten the pledge to be effective.
erforderlich.
5 5
Für den Fall, dass die Gesellschaft beschliesst, Aktienzertifikate If the Company decides to issue and deliver Share certificates, the Share
auszugeben und auszuhändigen, müssen die Aktienzertifikate die certificates shall bear the signature(s) of one or more duly authorized
Unterschrift(en) von einem oder mehreren zeichnungsberechtigten signatories of the Company, at least one of which shall be a member of the
Personen tragen. Mindestens eine dieser Personen muss ein Mitglied des Board of Directors. These signatures may be facsimile signatures.
Verwaltungsrates sein. Faksimile−Unterschriften sind erlaubt.
6 6
Die Inhaber von Aktienzertifikaten haben der Gesellschaft den Verlust, The holder of any Share certificate(s) shall immediately notify the
Diebstahl, die Zerstörung oder Beschädigung von Zertifikaten Company of any loss, theft, destruction or mutilation of any such
unverzüglich zu melden. Die Gesellschaft kann an solche Inhaber gegen certificate(s); the Company may issue to such holder a new certificate upon
Aushändigung des beschädigten Zertifikates, oder gegen ausreichenden the surrender of the mutilated certificate or, in the case of loss, theft or
Nachweis eines Verlustes, Diebstahls oder der Zerstörung, neue destruction of the certificate, upon satisfactory proof of such loss, theft or
Zertifikate ausgeben. Der Verwaltungsrat, ein von diesem eingesetzter destruction; the Board of Directors, or a committee designated thereby, or
Ausschuss, oder der Transfer Agent können in ihrem freien Ermessen the Transfer Agent, may, in their discretion, require the owner of the lost,
vom Eigentümer des verlorenen, gestohlenen oder zerstörten stolen or destroyed certificate, or such Person’s legal representative, to give
Zertifikates, oder, im Fall einer Zivilrechtlichen Person, von deren the Company a bond in such sum and with such surety or sureties as they
gesetzlichem Vertreter verlangen, dass diese der Gesellschaft einen may direct to indemnify the Company and said Transfer Agent against any
Schuldschein im Betrag und mit Sicherheiten ausgestaltet wie vom claim that may be made on account of the alleged loss, theft or destruction
Verwaltungsrat, einem von diesem eingesetzten Ausschuss oder dem of any such certificate or the issuance of such new certificate.
Transfer Agent verlangt übergibt, der es erlaubt, die Gesellschaft und
den Transfer Agent für sämtliche Ansprüche zu entschädigen, die sich
im Zusammenhang mit dem behaupteten Verlust, Diebstahl oder der
Zerstörung eines solchen Zertifikates oder mit der Ausgabe eines neuen
Zertifikates ergeben können.
8
7 7
Der Verwaltungsrat ist berechtigt, zusätzliche Regelungen und The Board of Directors may make such additional rules and regulations as
Anordnungen zu treffen, die er im Zusammenhang mit der Ausgabe und it may deem expedient concerning the issue and transfer of certificates
Übertragung von Zertifikaten über Aktien verschiedener Kategorien als representing Shares of each class of the Company and may make such rules
zweckdienlich erachtet. Er kann im Zusammenhang mit der Ausgabe and take such action as it may deem expedient concerning the issue of
neuer Aktienzertifikate als Ersatz für verloren gegangene, gestohlene, certificates in lieu of certificates claimed to have been lost, destroyed,
zerstörte oder beschädigte Zertifikate geeignete Regelungen erlassen stolen or mutilated.
und Massnahmen ergreifen.
8 8
Die Gesellschaft kann in jedem Fall Aktienzertifikate ausgeben, die The Company may in any event issue Share certificates representing more
mehr als eine Aktie verkörpern. than one Share.
Artikel 9: Aktienbuch, Article 9: Share Register, Restrictions on Registration, Nominees

Eintragungsbeschränkungen, Nominees
1 1
Die Gesellschaft selbst oder ein von ihr beauftragter Dritter führt ein The Company shall maintain, itself or through a third party, a share
Aktienbuch. Darin werden die Eigentümer und Nutzniesser der Aktien register that lists the surname, first name, address and citizenship (or the
sowie Nominees mit Namen und Vornamen, Adresse und name and registered office for legal entities) of the owners and
Staatsangehörigkeit (bei Rechtseinheiten mit Firma und Sitz) usufructuaries of the Shares as well as the nominees. A Person recorded in
eingetragen. Ändert eine im Aktienbuch eingetragene Zivilrechtliche the share register shall notify the share registrar of any change in address.
Person ihre Adresse, so hat sie dies dem Aktienbuchführer mitzuteilen. Until such notification shall have occurred, all written communication from
Solange dies nicht geschehen ist, gelten alle schriftlichen Mitteilungen the Company to Persons of record shall be deemed to have validly been
der Gesellschaft an die im Aktienbuch eingetragenen Zivilrechtlichen made if sent to the address recorded in the share register.
Personen als rechtsgültig an die bisher im Aktienbuch eingetragene
Adresse erfolgt.
2 2
Ein Erwerber von Aktien wird auf Gesuch als Aktionär mit Stimmrecht An acquirer of Shares shall be recorded upon request in the share register
im Aktienbuch eingetragen, vorausgesetzt, dass ein solcher Erwerber as a shareholder with voting rights; provided, however, that any such
auf Aufforderung durch die Gesellschaft ausdrücklich erklärt, die acquirer upon request of the Company expressly declares to have acquired
Aktien im eigenen Namen und auf eigene Rechnung erworben zu haben. the Shares in its own name and for its own account. The Board of Directors
Der Verwaltungsrat kann Nominees, welche Aktien im eigenen Namen may record nominees who hold Shares in their own name, but for the
aber auf fremde Rechnung halten, als Aktionäre mit Stimmrecht im account of third parties, as shareholders of record in the share register of
Aktienbuch der Gesellschaft eintragen. Der Verwaltungsrat kann the Company. The Board of Directors may set forth the relevant
Kriterien für die Billigung solcher Nominees als Aktionäre mit requirements for the acceptance of nominees as shareholders with voting
Stimmrecht festlegen. Die an den Aktien wirtschaftlich Berechtigten, rights. Beneficial owners of Shares who hold Shares through a nominee
welche die Aktien über einen Nominee halten, üben Aktionärsrechte exercise the shareholders’ rights through the intermediation of such
mittelbar über den Nominee aus. nominee.
9
3 3
Sollte der Verwaltungsrat die Eintragung eines Aktionärs als Aktionär If the Board of Directors refuses to register a shareholder as a shareholder
mit Stimmrecht ablehnen, muss dem Aktionär diese Ablehnung with voting rights, it shall notify the shareholder of such refusal within
innerhalb von 20 Tagen nach Erhalt des Eintragungsgesuches mitgeteilt 20 days upon receipt of the application. Non−recognized shareholders shall
werden. Aktionäre, die nicht als Aktionäre mit Stimmrecht anerkannt be entered in the share register as shareholders without voting rights.
wurden, sind als Aktionäre ohne Stimmrecht im Aktienbuch
einzutragen.
4 4
Der Verwaltungsrat kann nach Anhörung des eingetragenen Aktionärs After hearing the registered shareholder concerned, the Board of Directors
dessen Eintragung im Aktienbuch als Aktionär mit Stimmrecht mit may cancel the registration of such shareholder as a shareholder with
Rückwirkung auf das Datum der Eintragung streichen, wenn diese voting rights in the share register with retroactive effect as of the date of
durch falsche oder irreführende Angaben zustande gekommen ist. Der registration if such registration was made based on false or misleading
Betroffene muss über die Streichung sofort informiert werden. information. The relevant shareholder shall be informed promptly of the
cancellation.
5 5
Sofern die Gesellschaft an einer Börse im Ausland kotiert ist, ist es der In case the Company is listed on any foreign stock exchange, the
Gesellschaft mit Bezug auf den Regelungsgegenstand dieses Artikels 9 Company is permitted to comply with the relevant rules and regulations
gestattet, die in der jeweiligen Rechtsordnung geltenden Vorschriften that are applied in that foreign jurisdiction with regard to the subject of this
und Normierungen anzuwenden. Article 9.
Artikel 10: Rechtsausübung Article 10: Exercise of Rights

1 1
Die Gesellschaft anerkennt nur einen Vertreter pro Aktie. The Company shall only accept one representative per Share.
2 2
Stimmrechte und die damit verbundenen Rechte können der Voting rights and rights derived from them may be exercised in relation to
Gesellschaft gegenüber von einem Aktionär, Nutzniesser der Aktien the Company by a shareholder, usufructuary of Shares or nominee only to
oder Nominee jeweils nur in dem Umfang ausgeübt werden, wie diese the extent that such Person is recorded in the share register with the right to
Zivilrechtliche Person mit Stimmrecht im Aktienbuch eingetragen ist. exercise his voting rights.
10
III. Organe und Organisation der Gesellschaft III. Corporate Bodies and Organization of the Company
Artikel 11: Gesellschaftsorgane Article 11: Corporate Bodies
Die Organe der Gesellschaft sind: The corporate bodies are:
(a) die Generalversammlung; (a) the General Meeting of Shareholders;
(b) der Verwaltungsrat; (b) the Board of Directors;
(c) die Revisionsstelle; und (c) the auditor; and
(d) zusätzliche, durch den Verwaltungsrat im Rahmen des (d) additional bodies as may be established by the Board of Directors in
Organisationsreglements bestellte Gremien. accordance with the By−Laws.
A. Generalversammlung A. General Meeting of the Shareholders
Artikel 12: Befugnisse Article 12: Authority

1 1
Die Generalversammlung ist das oberste Organ der Gesellschaft. The General Meeting of Shareholders is the supreme corporate body of
the Company.
2 2
Der Generalversammlung stehen die folgenden unübertragbaren The following powers shall be vested exclusively in the General Meeting
Befugnisse zu: of Shareholders:
(a) die Festsetzung und Änderung der Statuten; (a) the adoption and amendment of these Articles of Association;
(b) die Wahl der Mitglieder des Verwaltungsrates und der (b) the election of the members of the Board of Directors and the auditor;
Revisionsstelle;
(c) die Genehmigung des Jahresberichtes und der Konzernrechnung; (c) the approval of the annual report and the consolidated financial
statements of the Company;
(d) die Genehmigung der Jahresrechnung der Gesellschaft, sowie die (d) the approval of the annual statutory financial statements of the
Beschlussfassung über die Verwendung des Bilanzgewinnes, Company and the resolution on the allocation of profit shown on the
insbesondere die Festsetzung der Dividende; annual statutory balance sheet, in particular the determination of any
dividend;
(e) die Entlastung der Mitglieder des Verwaltungsrates und der übrigen (e) the grant of a release from liability to the members of the Board of
mit der Geschäftsführung betrauten Zivilrechtlichen Personen; Directors and the Persons entrusted with management;
11
(f) die Genehmigung des Zusammenschlusses mit einem (f) the approval pursuant to Article 21 para. 4 of a Business Combination
Nahestehenden Aktionär nach Artikel 21 Absatz 4 (die jeweilige with an Interested Shareholder (as each such term is defined in
Definition findet sich unter Artikel 35 dieser Statuten); und Article 35 of these Articles of Association); and
(g) die Beschlussfassung über Gegenstände, die der (g) the adoption of resolutions on matters that are reserved to the General
Generalversammlung durch das Gesetz oder die Statuten Meeting of Shareholders by law, these Articles of Association or,
vorbehalten sind, oder die vom Verwaltungsrat gemäss Artikel subject to article 716a CO, that are submitted to the General Meeting
716a OR der Generalversammlung zur Beschlussfassung vorgelegt of Shareholders by the Board of Directors.
werden.
Artikel 13: Ordentliche Generalversammlung Article 13: Annual General Meeting

1 1
Die ordentliche Generalversammlung findet alljährlich innerhalb von The Annual General Meeting shall be held each year within six months
sechs Monaten nach Schluss des Geschäftsjahres statt. Spätestens after the close of the fiscal year of the Company. The annual report and the
zwanzig Kalendertage vor der ordentlichen Generalversammlung sind auditor’s report shall be made available for inspection by the shareholders
der Geschäftsbericht und der Revisionsbericht den Aktionären am at the registered office of the Company no later than twenty calendar days
Gesellschaftssitz zur Einsicht aufzulegen. Jeder Aktionär kann prior to the Annual General Meeting. Each shareholder is entitled to
verlangen, dass ihm unverzüglich eine Ausfertigung des request prompt delivery of a copy of the annual report and the auditor’s
Geschäftsberichts und des Revisionsberichts ohne Kostenfolge report free of charge. Shareholders of record will be notified of the
zugesandt wird. Die im Aktienbuch eingetragenen Aktionäre werden availability of the annual report and the auditor’s report in writing.
über die Verfügbarkeit des Geschäftsberichts und des Revisionsberichts Reference to the availability of the annual report and the auditor’s report
durch schriftliche Mitteilung unterrichtet. In der Einladung zur shall be included in the notice of the Annual General Meeting.
ordentlichen Generalversammlung wird auf die Verfügbarkeit des
Geschäftsberichts und des Revisionsberichts hingewiesen.
2 2
Die ordentliche Generalversammlung kann im Ausland durchgeführt The Annual General Meeting may be held outside of Switzerland.
werden.
Artikel 14: Ausserordentliche Article 14: Extraordinary General Meeting

Generalversammlung
1 1
Ausserordentliche Generalversammlungen finden in den vom Gesetz An Extraordinary General Meeting shall be held in the circumstances
vorgesehenen Fällen statt, insbesondere, wenn der Verwaltungsrat, der provided by law, in particular when deemed necessary or appropriate by
Verwaltungsratspräsident, der Chief Executive Officer oder der the Board of Directors, the Chairman of the Board, the Chief Executive
Company President es für notwendig oder angezeigt erachten oder die Officer, or the President, or if so requested by the auditor.
Revisionsstelle dies verlangt.
12
2 2
Ausserdem muss der Verwaltungsrat, der Verwaltungsratspräsident, An Extraordinary General Meeting shall further be convened by the Board
der Chief Executive Officer oder der Company President eine of Directors, the Chairman of the Board, the Chief Executive Officer, or
ausserordentliche Generalversammlung einberufen, wenn es eine the President, upon resolution of a General Meeting of Shareholders or if
Generalversammlung so beschliesst oder wenn ein oder mehrere so requested by one or more shareholders who, in the aggregate, represent
Aktionäre, welche zusammen mindestens zehn Prozent des im at least one−tenth of the share capital recorded in the Commercial Register,
Handelsregister eingetragenen Aktienkapitals vertreten, dies verlangen, and who submit:
und unter der Voraussetzung, dass folgende Angaben gemacht werden:
(a) (1) schriftliches, von dem Aktionär bzw. den Aktionären (a) (1) a written request signed by such shareholder(s) that specifies the
unterzeichnetes und die Verhandlungsgegenstände bezeichnendes item(s) to be included on the agenda, (2) the respective proposals of
Begehren, (2) die Anträge sowie (3) der Nachweis der the shareholders and (3) evidence of the required shareholdings
erforderlichen Anzahl der im Aktienbuch eingetragenen Aktien; recorded in the share register; and
und
(b) weitere Informationen, die von der Gesellschaft nach den Regeln (b) such other information as would be required to be included in a proxy
der U.S. Securities and Exchange Commission (die “SEC”) in statement pursuant to the rules of the U.S. Securities and Exchange
einem sog. Proxy Statement aufgenommen und veröffentlicht Commission (the “SEC”).
werden müssen.
3 3
Die ausserordentliche Generalversammlung kann im Ausland An Extraordinary General Meeting may be held outside of Switzerland.
durchgeführt werden.
Artikel 15: Einberufung der Generalversammlung Article 15: Notice of Shareholders’ Meetings
1 1
Die ordentliche und die ausserordentliche Generalversammlung Notice of an Annual General Meeting or an Extraordinary General
(einzeln und zusammen die “Generalversammlung”) wird durch den Meeting (individually and collectively the “General Meeting of
Verwaltungsrat, nötigenfalls durch die Revisionsstelle, spätestens 20 Shareholders”) shall be given by the Board of Directors or, if necessary, by
Kalendertage vor dem Tag der Generalversammlung einberufen. the auditor, at least twenty calendar days before the General Meeting of
Shareholders is to take place.
2 2
Die auf Verlangen eines Aktionärs durchzuführende ausserordentliche In case of an Extraordinary General Meeting requested by a shareholder,
Generalversammlung ist durch den Verwaltungsrat innerhalb eines the Board of Directors shall call such Extraordinary General Meeting
angemessenen Zeitraums seit Empfang des Begehrens auf Einberufung within a reasonable time after such request.
einer ausserordentlichen Generalversammlung einzuberufen.
13
3 3
Die Einberufung erfolgt durch einmalige Bekanntmachung im Notice of the General Meeting of Shareholders shall be given by way of a
Publikationsorgan der Gesellschaft gemäss Artikel 34 dieser Statuten. single announcement in the official means of publication of the Company
Für die Einhaltung der Einberufungsfrist ist der Tag der pursuant to Article 34 of these Articles of Association. The notice period
Veröffentlichung der Einberufung im Publikationsorgan massgeblich, shall be deemed to have been observed if notice of the General Meeting of
wobei der Tag der Veröffentlichung nicht mitzuzählen ist. Die im Shareholders is published in such official means of publication, it being
Aktienbuch eingetragenen Aktionäre können zudem auf dem understood that the date of publication is not to be included for purposes of
ordentlichen Postweg über die Generalversammlung informiert werden. computing the notice period. Shareholders of record may in addition be
informed of the General Meeting of Shareholders by ordinary mail.
4 4
Die Einberufung enthält die Verhandlungsgegenstände sowie die The notice of a General Meeting of Shareholders shall specify the items
Anträge des Verwaltungsrates und des oder der Aktionäre, welche die on the agenda and the proposals of the Board of Directors and/or the
Durchführung einer Generalversammlung oder die Traktandierung eines shareholder(s) who requested that a General Meeting of Shareholders be
Verhandlungsgegenstandes verlangt haben, und bei Wahlen die Namen held or an item be included on the agenda, and, in the event of elections,
des oder der zur Wahl vorgeschlagenen Kandidaten. the name(s) of the candidate(s) that has or have been put on the ballot for
election.
Artikel 16: Traktandierung; Nominierungen Article 16: Agenda; Nominations

1 1
Jeder Aktionär kann die Traktandierung eines Any shareholder may request that an item be included on the agenda of a
Verhandlungsgegenstandes verlangen. General Meeting of Shareholders.
14
2 2
Das Traktandierungsbegehren muss in schriftlicher Fassung spätestens In order for an item to be included on the agenda for a General Meeting of
60, frühestens aber 120 Kalendertage vor der Generalversammlung an Shareholders, a written request must be sent to the Secretary of the
den Sekretär der Gesellschaft zugestellt werden. Jedes Gesuch muss den Company not less than 60 nor more than 120 calendar days prior to the
Namen und die Adresse des antragstellenden Aktionärs (so, wie er in meeting. Each such request must specify the name and address of the
den Gesellschaftsunterlagen aufgeführt ist), sowie eine eindeutige und shareholder who requested it (as the same appear in the Company’s
präzise Formulierung des Verhandlungsgegenstandes enthalten. records), and a clear and concise statement of the agenda item, and shall be
Darüberhinaus ist ein Nachweis über die erforderliche, im Aktienbuch accompanied by evidence of the required shareholdings recorded in the
der Gesellschaft eingetragene Aktionärseigenschaft beizulegen. Sofern share register. If the chairman of a General Meeting of Shareholders
der Vorsitzende der Generalversammlung feststellt, dass ein determines that any proposed business has not been properly brought
Verhandlungsgegenstand nicht ordnungsgemäss traktandiert wurde, so before the meeting, he shall declare such business out of order; and such
hat er diesen Verhandlungsgegenstand für nicht ordnungsgemäss business shall not be conducted at the meeting.
traktandiert zu erklären und den Gegenstand von der Verhandlung
auszuschliessen.
3 3
Der Verwaltungsrat oder jeder zu der Wahl von Verwaltungsräten Nominations for the election of directors of the Company may be made by
berechtigte Aktionär darf Nominierungen für die Wahl des the Board of Directors or by any shareholder entitled to vote for the
Verwaltungsrates der Gesellschaft treffen. Jeder Aktionär, der im election of directors. Any shareholder entitled to vote for the election of
Rahmen der Generalversammlung zu der Wahl von Verwaltungsräten directors at a General Meeting of Shareholders may nominate persons for
berechtigt ist, darf Personen für die Wahl des Verwaltungsrates nur election as directors only if written notice of such shareholder’s intent to
dann vorschlagen, wenn die Absicht einer solchen Nominierung dem make such nomination is given, either by personal delivery or by mail,
Sekretär der Gesellschaft in schriftlicher Form durch persönliches postage prepaid, to the Secretary of the Company not later than (a) with
Überbringen, Brief, im Voraus bezahltes Porto, und unter den folgenden respect to an election to be held at an Annual General Meeting of
Voraussetzungen angekündigt wurde: (a) 90 Tage vor Durchführung Shareholders, 90 days in advance of such meeting, and (b) with respect to
einer ordentlichen Generalversammlung, und (b) bei ausserordentlichen an election to be held at an Extraordinary General Meeting of Shareholders
Generalversammlungen, bis spätestens zum Ende der ordentlichen for the election of directors, the close of business on the seventh day
Bürostunden am siebenten Tag nach der erstmaligen Bekanntgabe einer following the date on which notice of such meeting is first given to
derartigen Versammlung an die Aktionäre. Jeder der Wahlvorschläge shareholders. Each such notice shall set forth: (i) the name and address of
muss inhaltlich folgenden Anforderungen genügen: (i) Name und the shareholder who intends to make the nomination of the person or
Adresse des Aktionärs, der ein oder mehrere Personen für die Wahl persons to be nominated; (ii) a representation that the shareholder is a
vorschlägt; (ii) ein Nachweis, dass der Aktionär die Anteile hält, die ihn holder of record of Shares entitled to vote at such meeting and intends to
zu einer Wahl berechtigen und dass er beabsichtigt, an der appear in person or by proxy at the meeting to nominate the person or
Versammlung persönlich oder durch einen Vertreter teilzunehmen, um persons specified in the notice; (iii) a description of all arrangements or
die vorgeschlagene Person zu nominieren; (iii) die Benennung aller understandings between the shareholder and each nominee and any other
Vereinbarungen und Übereinkünfte zwischen dem Aktionär und der von person or persons (naming such person or persons) pursuant to which the
diesem nominierten Person und jedem Dritten (namentliche Nennung nomination or nominations are to be made by the shareholder; (iv) such
erforderlich), gemäss welchem eine Nominierung durch den Aktionär other information regarding each nominee proposed by such shareholders
erfolgen soll; (iv) weitere Informationen über jede durch einen as would have been required to be included in a proxy statement filed
Aktionär nominierte Person, die von der Gesellschaft nach den Proxy pursuant to the proxy rules of the SEC had each nominee been nominated,
Regeln der SEC in einem sog. Proxy Statement aufgenommen werden or intended to be nominated, by the Board of Directors; and (v) the
müssen, hätte der Verwaltungsrat die jeweilige nominierte Person consent of each nominee to serve as a director of the Company if so
nominiert oder nominieren wollen; und (v) die Erklärung der elected. The chairman of the meeting may refuse to acknowledge the
nominierten Person das Mandat als Verwaltungsrat anzunehmen für den nomination of any person not made in compliance with the foregoing
Fall, dass die nominierte Person in diese Funktion gewählt wird. Der procedure.
Vorsitzende kann, bei Nichteinhaltung der in diesem Absatz
umschriebenen Vorgehensweise, die Anerkennung einer Nominierung
verweigern.
15
4 4
Zu nicht gehörig angekündigten Verhandlungsgegenständen können No resolution may be passed at a General Meeting of Shareholders
keine Beschlüsse der Generalversammlung gefasst werden. Hiervon concerning an agenda item in relation to which due notice was not given,
ausgenommen ist jedoch der Beschluss über den in einer except for proposals made during a General Meeting of Shareholders to:
Generalversammlung gestellten Antrag auf:
(a) Einberufung einer ausserordentlichen Generalversammlung; sowie (a) convene an Extraordinary General Meeting; or
(b) Durchführung einer Sonderprüfung gemäss Artikel 697a OR. (b) initiate a special investigation in accordance with article 697a CO.
5 5
Zur Stellung von Anträgen im Rahmen der Verhandlungsgegenstände No prior notice is required to bring motions related to items already on the
und zu Verhandlungen ohne Beschlussfassung bedarf es keiner agenda or for the discussion of matters on which no resolution is to be
vorgängigen Ankündigung. taken.
Artikel 17: Vorsitz der Generalversammlung, Article 17: Acting Chair, Minutes, Vote Counters
Protokoll, Stimmenzähler
1 1
An der Generalversammlung führt der Verwaltungsratspräsident oder, At the General Meeting of Shareholders the Chairman of the Board of
bei dessen Verhinderung, der Vizepräsident oder eine andere vom Directors or, in his absence, the Vice−Chairman or any other person
Verwaltungsrat bezeichnete Person den Vorsitz. designated by the Board of Directors, shall take the chair.
2 2
Der Vorsitzende der Generalversammlung bestimmt den The acting chair of the General Meeting of Shareholders shall appoint the
Protokollführer und die Stimmenzähler, die alle nicht Aktionäre sein secretary and the vote counters, none of whom need be shareholders. The
müssen. Das Protokoll ist vom Vorsitzenden und vom Protokollführer minutes of the General Meeting of Shareholders shall be signed by the
zu unterzeichnen. acting chair and the secretary.
16
3 3
Dem Vorsitzenden der Generalversammlung stehen die notwendigen The acting chair of the General Meeting of Shareholders shall have all
und erforderlichen Befugnisse und Kompetenzen für eine powers and authority necessary and appropriate to ensure the orderly
ordnungsgemässe Durchführung der Generalversammlung zu. conduct of the General Meeting of Shareholders.
Artikel 18: Recht auf Teilnahme, Vertretung Article 18: Right to Participation and Representation
der Aktionäre
Sofern die Statuten es vorsehen, ist jeder an einem bestimmten, durch Except as provided in these Articles of Association, each shareholder
den Verwaltungsrat vorgegebenen Stichtag, im Aktienbuch eingetragene recorded in the share register on a specific qualifying day which may be
Aktionär berechtigt, an der Generalversammlung teilzunehmen und an designated by the Board of Directors shall be entitled to participate at the
der Beschlussfassung mitzuwirken. Ein Aktionär kann sich an der General Meeting of Shareholders and in any vote taken. The shareholders
Generalversammlung vertreten lassen, wobei der Vertreter nicht may be represented by proxies who need not be shareholders. The Board of
Aktionär sein muss. Der Verwaltungsrat kann die Einzelheiten über die Directors may issue the particulars of the right to representation and
Vertretung und Teilnahme an der Generalversammlung in participation at the General Meeting of Shareholders in procedural rules.
Verfahrensvorschriften regeln.
Artikel 19: Stimmrechte Article 19: Voting Rights

1 1
Jede Aktie berechtigt zu einer Stimme. Das Stimmrecht untersteht den Each Share shall convey the right to cast one vote. The right to vote is
Bedingungen von Artikel 9 und 10 dieser Statuten. subject to the conditions of Articles 9 and 10 of these Articles of
Association.
Artikel 20: Beschlüsse und Wahlen: Article 20: Resolutions and Elections: Voting Requirements
Mehrheitserfordernisse
1 1
Die Generalversammlung fasst Beschlüsse und entscheidet Wahlen, Unless otherwise required by Swiss statutory law or these Articles of
soweit das Gesetz oder diese Statuten es nicht anders bestimmen, mit Association, the General Meeting of Shareholders shall take resolutions
der relativen Mehrheit der abgegebenen Aktienstimmen (wobei and decide elections upon a relative majority of the votes cast at the
Enthaltungen, Broker Nonvotes, leere oder ungültige Stimmen für die General Meeting of Shareholders (whereby abstentions, broker nonvotes,
Bestimmung des Mehrs nicht berücksichtigt werden). blank or invalid ballots shall be disregarded for purposes of establishing
the majority).
2 2
Die Generalversammlung entscheidet über die Wahl von Mitgliedern The General Meeting of Shareholders shall decide elections of members
des Verwaltungsrates nach der Mehrheit der abgegebenen Stimmen. of the Board of Directors upon a plurality of the votes cast at the General
Danach gilt diejenige Person, welche die grösste Zahl der abgegebenen Meeting of Shareholders. A plurality means that the individual who
Aktienstimmen für einen Verwaltungsratssitz erhält, als für den receives the largest number of votes for a board seat is elected to that board
betreffenden Verwaltungsratssitz gewählt. Aktienstimmen gegen einen seat. Votes against any candidate, abstentions, broker nonvotes, blank or
Kandidaten, Stimmenthaltungen, Broker Nonvotes, leere oder ungültige invalid ballots shall have no impact on the election of members of the
Stimmen haben für die Zwecke dieses Artikels 20 Absatz 2 keine Board of Directors under this Article 20 para. 2.
Auswirkungen auf die Wahl von Mitgliedern des Verwaltungsrates.
17
3 3
Für die Abwahl von amtierenden Mitgliedern des Verwaltungsrates For the removal of a serving member of the Board of Directors, the voting
gelten das Mehrheitserfordernis gemäss Artikel 21 Absatz 2(e) sowie requirement set forth in Article 21 para. 2(e) and the presence quorum set
das Präsenzquorum von Artikel 22 Absatz 2(a). forth in Article 22 para. 2(a) shall apply.
4 4
Die Abstimmungen und Wahlen erfolgen offen, es sei denn, dass die Resolutions and elections shall be decided by a show of hands, unless a
Generalversammlung schriftliche Abstimmung respektive Wahl written ballot is resolved by the General Meeting of Shareholders or is
beschliesst oder der Vorsitzende der Generalversammlung dies ordered by the acting chair of the General Meeting of Shareholders. The
anordnet. Der Vorsitzende der Generalversammlung kann acting chair may also hold resolutions and elections by use of an electronic
Abstimmungen und Wahlen auch mittels elektronischem Verfahren voting system. Electronic resolutions and elections shall be considered
durchführen lassen. Elektronische Abstimmungen und Wahlen sind equal to resolutions and elections taken by way of a written ballot.
schriftlichen Abstimmen und Wahlen gleichgestellt.
5 5
Der Vorsitzende der Generalversammlung kann eine offene Wahl oder The chair of the General Meeting of Shareholders may at any time order
Abstimmung immer durch eine schriftliche oder elektronische that an election or resolution decided by a show of hands be repeated by
wiederholen lassen, sofern seiner Ansicht nach Zweifel am way of a written or electronic ballot if he considers the vote to be in doubt.
Abstimmungsergebnis bestehen. In diesem Fall gilt die The resolution or election previously held by a show of hands shall then be
vorausgegangene offene Wahl oder Abstimmung als nicht erfolgt. deemed to have not taken place.
Artikel 21: Besonderes Stimmen Quorum Article 21: Special Vote

1 1
Ein Beschluss der Generalversammlung, der mindestens zwei Drittel The approval of at least two−thirds of the Shares represented at a General
der an der Generalversammlung vertretenen Aktien sowie die absolute Meeting of Shareholders and the absolute majority of the par value of such
Mehrheit des vertretenen Aktiennennwertes, auf sich vereinigt, ist Shares, shall be required for resolutions with respect to:
erforderlich für:
(a) Die Ergänzung oder Änderung des Gesellschaftszweckes gemäss (a) the amendment or modification of the purpose of the Company as
Artikel 2 dieser Statuten; described in Article 2 of these Articles of Association;
(b) die Einführung von Stimmrechtsaktien; (b) the creation of shares with voting power greater than the Shares;
(c) die Beschränkung der Übertragbarkeit der Aktien und die Änderung (c) the restriction on the transferability of Shares and the modification or
oder Aufhebung einer solche Beschränkung; removal of such restriction;
(d) eine genehmigte oder bedingte Kapitalerhöhung; (d) an increase in the amount of the authorized or conditional share capital;
18
(e) die Kapitalerhöhung (i) aus Eigenkapital, (ii) gegen Sacheinlage (e) an increase in share capital through (i) the conversion of capital
oder zwecks Sachübernahme oder (iii) die Gewährung von surplus, (ii) contribution in kind or for purposes of an acquisition of
besonderen Vorteilen; assets, or (iii) the granting of special privileges upon a capital
increase;
(f) die Einschränkung oder Aufhebung des Bezugsrechts oder des (f) the limitation on or withdrawal of preemptive or preferential
Vorwegzeichnungsrechtes; subscription rights;
(g) die Verlegung des Sitzes der Gesellschaft; (g) the relocation of the registered office of the Company;
(h) die Fusion im Wege der Absorption einer anderen Gesellschaft (h) subject to Article 21 para. 4 of these Articles of Association and as far
vorbehaltlich der zusätzlichen Voraussetzungen unter Artikel 21 as required by Swiss statutory law, the merger by way of absorption of
Absatz 4 dieser Statuten und im Rahmen der gesetzlichen another company;
Vorgaben schweizerischen Rechts;
(i) die Auflösung der Gesellschaft; und (i) the dissolution of the Company; and
(j) jede Änderung dieses Artikels 21 Absatz 1. (j) any change to this Article 21 para. 1.
2 2
Ein Beschluss der Generalversammlung, der mindestens zwei Drittel The approval of at least two−thirds of the Total Voting Shares shall be
der Gesamtstimmen auf sich vereinigt ist erforderlich für: required for:
(a) Jede Änderung von Artikel 16 dieser Statuten; (a) any change to Article 16 of these Articles of Association;
(b) jede Änderung von Artikel 20 dieser Statuten; (b) any change to Article 20 of these Articles of Association;
(c) jede Änderung dieses Artikels 21 Absatz 2; (c) any change to this Article 21 para. 2;
(d) jede Änderung von Artikel 22, 23 oder 24 dieser Statuten; und (d) any change to Article 22, 23 or 24 of these Articles of Association; and
(e) die Abwahl eines amtierenden Mitglieds des Verwaltungsrates. (e) a resolution with respect to the removal of a serving member of the
Board of Directors.
19
3 3
Ein Beschluss der Generalversammlung, der mindestens zwei Drittel The approval of at least two−thirds of the Shares voted at a General
der abgegebenen Stimmen auf sich vereinigt, ist erforderlich für: Meeting of Shareholders shall be required for:
(a) jede Änderung dieses Artikels 21 Absatz 3; und (a) any change to this Article 21 para. 3; and
(b) jede Änderung von Artikel 25 dieser Statuten. (b) any change to Article 25 of these Articles of Association.
4 4
Zusätzlich zu etwaigen benötigten Zustimmungserfordernissen ist ein In addition to any approval that may be required under applicable law, the
Beschluss der Generalversammlung mit einer Mehrheit, die mindestens approval of a majority at least equal to the sum of: (i) two−thirds of the
die Summe von: (i) zwei Drittel der Gesamtstimmen; zuzüglich Total Voting Shares; plus (ii) a number of Shares entitled to vote that is
(ii) einer Anzahl von stimmberechtigten Aktien, die einem Drittel der equal to one−third of the number of Shares entitled to vote held by
von Nahestehenden Aktionären (wie in Artikel 35 dieser Statuten Interested Shareholders (as defined in Article 35 of these Articles of
definiert) gehaltenen Aktienstimmen entspricht, auf sich vereinigt, Association), shall be required for the Company to (1) engage in any
erforderlich für (1) jeden Zusammenschluss der Gesellschaft mit einem Business Combination with an Interested Shareholder for a period of three
Nahestehenden Aktionär innerhalb eines Zeitraumes von drei Jahren, years following the time that such Person became an Interested
seitdem diese Zivilrechtliche Person zu einem Nahestehenden Aktionär Shareholder, (2) amend Article 12(f) of these Articles of Association or
wurde, (2) jede Änderung von Artikel 12(f) dieser Statuten oder (3) amend this Article 21 para. 4 of these Articles of Association
(3) jede Änderung von diesem Artikel 21 Absatz 4 dieser Statuten (including any definitions pertaining thereto as set forth in Article 35 of
(einschliesslich der dazugehörigen Definitionen in Artikel 35 dieser these Articles of Association); provided, however, that the approval
Statuten). Das im vorangehenden Satz aufgestellte requirement in the preceding sentence shall not apply if:
Zustimmungserfordernis ist jedoch nicht anwendbar falls:
(a) der Verwaltungsrat, bevor diese Zivilrechtliche Person zu einem (a) prior to such time that such Person became an Interested Shareholder,
Nahestehenden Aktionär wurde, entweder den Zusammenschluss the Board of Directors approved either the Business Combination or
oder eine andere Transaktion genehmigte, in Folge derer diese the transaction which resulted in such Person becoming an Interested
Zivilrechtliche Person zu einem Nahestehenden Aktionär wurde; Shareholder;
20
(b) nach Vollzug der Transaktion, in Folge derer diese Zivilrechtliche (b) upon consummation of the transaction which resulted in such Person
Person zu einem Nahestehenden Aktionär wurde, der becoming an Interested Shareholder, the Interested Shareholder
Nahestehende Aktionär unmittelbar vor Beginn der betreffenden Owned at least 85% of the Total Voting Shares at the time the
Transaktion mindestens 85% der Gesamtstimmen hielt, wobei zur transaction commenced, excluding for purposes of determining such
Bestimmung der Anzahl der allgemein stimmberechtigten Aktien number of Shares then in issue (but not for purposes of determining
(nicht jedoch zur Bestimmung der durch den Nahestehenden the Shares Owned by the Interested Shareholder), those Shares Owned
Aktionär gehaltenen Aktien) folgende Aktien nicht zu (x) by Persons who are both members of the Board of Directors and
berücksichtigen sind: Aktien, (x) welche von Zivilrechtlichen officers of the Company and (y) by employee share plans in which
Personen gehalten werden, die sowohl Verwaltungsrats− wie auch employee participants do not have the right to determine
Geschäftsleitungsmitglieder sind, und (y) welche für confidentially whether Shares held subject to the plan will be tendered
Mitarbeiteraktienpläne reserviert sind, soweit die diesen Plänen in a tender or exchange offer;
unterworfenen Mitarbeiter nicht das Recht haben, unter Wahrung
der Vertraulichkeit darüber zu entscheiden, ob Aktien, die dem
betreffenden Mitarbeiteraktienplan unterstehen, in einem
Übernahme− oder Austauschangebot angedient werden sollen oder
nicht;
(c) eine Zivilrechtliche Person unbeabsichtigterweise zu einem (c) a Person becomes an Interested Shareholder inadvertently and (x) as
Nahestehenden Aktionär wird und (x) das Eigentum an einer soon as practicable divests itself of Ownership of sufficient Shares so
genügenden Anzahl Aktien sobald als möglich veräussert, so dass that such Person ceases to be an Interested Shareholder and (y) would
sie nicht mehr länger als Nahestehender Aktionär qualifiziert und not, at any time within the three−year period immediately prior to a
(y) zu keinem Zeitpunkt während der drei dem Zusammenschluss Business Combination between the Company and such Person, have
zwischen der Gesellschaft und dieser Zivilrechtlichen Person been an Interested Shareholder but for the inadvertent acquisition of
unmittelbar vorangehenden Jahre als Nahestehender Aktionär Ownership; or
gegolten hätte, ausgenommen aufgrund des unbeabsichtigten
Erwerbs der Eigentümerschaft.
21
(d) der Zusammenschluss vor Vollzug oder Verzicht auf und nach (d) the Business Combination is proposed prior to the consummation or
öffentlicher Bekanntgabe oder der nach diesem Abschnitt abandonment of and subsequent to the earlier of the public
erforderlichen Mitteilung (was auch immer früher erfolgt) eine(r) announcement or the notice required hereunder of a proposed
beabsichtigten Transaktion vorgeschlagen wird, welche (i) eine der transaction which (i) constitutes one of the transactions described in
Transaktionen im Sinne des zweiten Satzes dieses Artikels 21 the second sentence of this Article 21 para. 4(d); (ii) is with or by a
Absatz 4(d) darstellt; (ii) mit oder von einer Zivilrechtlichen Person Person who either was not an Interested Shareholder during the
abgeschlossen wird, die entweder während den letzten drei Jahren previous three years or who became an Interested Shareholder with
kein Nahestehender Aktionär war oder die mit der Genehmigung the approval of the Board of Directors; and (iii) is approved or not
des Verwaltungsrates zu einem Nahestehenden Aktionär wurde; opposed by a majority of the members of the Board of Directors then
und (iii) von einer Mehrheit der dannzumal amtierenden in office (but not less than one) who were Directors prior to any
Mitglieder des Verwaltungsrates (aber mindestens einem) Person becoming an Interested Shareholder during the previous three
genehmigt oder nicht abgelehnt wird, die entweder bereits years or were recommended for election to succeed such Directors by
Verwaltungsratsmitglieder waren, bevor in den drei vorangehenden a majority of such Directors. The proposed transactions referred to in
Jahren irgendeine Zivilrechtliche Person zu einem Nahestehenden the preceding sentence are limited to (x) a merger or consolidation of
Aktionär wurde, oder die auf Empfehlung einer Mehrheit solcher the Company (except for a merger in respect of which no vote of the
Verwaltungsratsmitglieder als deren Nachfolger zur Wahl Company’s shareholders is required); (y) a sale, lease, exchange,
vorgeschlagen wurden. Die im vorangehenden Satz erwähnten mortgage, pledge, transfer or other disposition (in one transaction or a
beabsichtigen Transaktionen sind auf folgende beschränkt: (x) eine series of transactions), whether as part of a dissolution or otherwise, of
Fusion oder eine andere Form des Zusammenschlusses der assets of the Company or of any direct or indirect majority−Owned
Gesellschaft (mit Ausnahme einer Fusion, welche keine subsidiary of the Company (other than to any direct or indirect wholly
Genehmigung durch die Generalversammlung der Gesellschaft Owned subsidiary or to the Company) having an aggregate market
voraussetzt); (y) ein Verkauf, eine Vermietung oder eine value equal to 50% or more of either that aggregate market value of all
Verpachtung ein Tausch, hypothekarische Belastung, Verpfändung, of the assets of the Company determined on a consolidated basis or
Übertragung oder anderweitige Verfügung (ob in einer oder the aggregate market value of all the Shares registered in the
mehreren Transaktionen), von Vermögenswerten der Gesellschaft Commercial Register; or (z) a proposed tender or exchange offer for
oder einer direkten oder indirekten Tochtergesellschaft, die zur 50% or more of the Total Voting Shares. The Company shall give not
Mehrheit von der Gesellschaft gehalten wird (jedoch nicht an eine less than 20 calendar days’ notice to all Interested Shareholders as
direkt oder indirekt zu 100% gehaltene Konzerngesellschaft oder well as to the other shareholders prior to the consummation of any of
an die Gesellschaft), soweit diese Vermögenswerte einen the transactions described in clause (x) or (y) of the second sentence
Marktwert von 50% oder mehr entweder des auf konsolidierter of this Article 21 para. 4(d).
Basis aggregierten Marktwertes aller Vermögenswerte der
Gesellschaft oder des aggregierten Marktwertes aller dann im
Handelsregister eingetragenen Aktien, unabhängig davon, ob eine
dieser Transaktionen Teil einer Auflösung der Gesellschaft ist oder
nicht; oder (z) ein vorgeschlagenes Übernahme− oder
Umtauschangebot für 50% oder mehr der Gesamtstimmen der
Gesellschaft. Die Gesellschaft muss Nahestehenden Aktionären
sowie den übrigen Aktionären den Vollzug einer der unter (x) oder
(y) des zweiten Satzes dieses Artikels 21 Absatz 4(d) erwähnten
Transaktionen mindestens 20 Kalendertage vorher mitteilen.
22
Artikel 22: Präsenzquorum Article 22: Presence Quorum
1 1
Jede Beschlussfassung oder Wahl setzt zu ihrer Gültigkeit im Zeitpunkt The adoption of any resolution or election requires the presence of at
der Konstituierung der Generalversammlung ein Präsenzquorum von least a majority of the Total Voting Shares at the time when the General
Aktionären, welche mindestens die Mehrheit aller Gesamtstimmen Meeting of Shareholders proceeds to business. The shareholders present
vertreten, voraus. Die Aktionäre können mit der Behandlung der at a General Meeting of Shareholders may continue to transact business,
Traktanden fortfahren, selbst wenn Aktionäre nach Bekanntgabe des despite the withdrawal of shareholders from such General Meeting of
Quorums durch den Vorsitzenden die Generalversammlung verlassen. Shareholders following announcement of the presence quorum at that
meeting.
2 2
Die nachfolgend aufgeführten Angelegenheiten erfordern zum Zeitpunkt The matters set forth below require the presence of at least two−thirds of
der Konstituierung der Generalversammlung ein Präsenzquorum von the Total Voting Shares at the time when the General Meeting of
Aktionären, welche mindestens zwei Drittel der Gesamtstimmen Shareholders proceeds to business:
vertreten:
(a) Die Beschlussfassung über die Abwahl eines amtierenden (a) the adoption of a resolution to remove a serving member of the
Verwaltungsratsmitglieds (Artikel 20 Absatz 3 und 21 Absatz 2(e) Board of Directors (Articles 20 para. 3 and 21 para. 2(e) of these
dieser Statuten); und Articles of Association); and
(b) die Beschlussfassung, diesen Artikel 22 oder Artikel 12(f), 20, 21, 23 (b) the adoption of a resolution to amend, vary, suspend the operation of,
oder 24 dieser Statuten zu ändern, zu ergänzen, nicht anzuwenden disapply or cancel this Article 22 or Articles 12(f), 20, 21, 23 or 24
oder ausser Kraft zu setzen. of these Articles of Association.
B. Verwaltungsrat B. Board of Directors
Artikel 23: Anzahl Verwaltungsräte Article 23: Number of Directors

1 1
Der Verwaltungsrat besteht aus mindestens drei und höchstens neun The Board of Directors shall consist of no less than three and no more
Mitgliedern. than nine members.
2 2
Sollte die Anzahl der Verwaltungsräte unter die in diesen Statuten Should the number of the members of Board of Directors fall under the
vorgesehene Mindestanzahl fallen, kann die Ernennung neuer minimum number provided for in these Articles of Association, the
Verwaltungsratsmitglieder zur Vervollständigung des Verwaltungsrats completion of the Board of Directors may be deferred until the next
bis zur nächsten ordentlichen Generalversammlung aufgeschoben Annual General Meeting.
werden.
23
Artikel 24: Amtsdauer Article 24: Term of Office
1 1
Die Verwaltungsräte werden vom Verwaltungsrat in drei Klassen The Board of Directors shall divide its members into three classes,
aufgeteilt, welche als Klasse I, Klasse II und Klasse III bezeichnet designated Class I, Class II and Class III. At each Annual General
werden. An jeder ordentlichen Generalversammlung soll jede Klasse Meeting, each class of the members of the Board of Directors whose
Verwaltungsräte, deren Amtsdauer abläuft, für eine Amtsdauer von drei term shall then expire shall be elected to hold office for a three−year term
Jahren bzw. bis zur Wahl eines Nachfolgers in sein Amt gewählt werden. or until the election of their respective successor in office.
2 2
Der Verwaltungsrat legt die Reihenfolge der Wiederwahl fest, wobei die The Board of Directors shall establish the order of rotation, whereby the
erste Amtszeit einer bestimmten Klasse von Verwaltungsräten auch first term of office of members of a particular class may be less than
weniger als drei Jahre betragen kann. Für die Zwecke dieser Bestimmung three years. For purposes of this provision, one year shall mean the
ist unter einem Jahr der Zeitabschnitt zwischen zwei ordentlichen period between two Annual General Meetings.
Generalversammlungen zu verstehen.
3 3
Wenn ein Verwaltungsratsmitglied vor Ablauf seiner Amtsdauer aus If, before the expiration of his term of office, a Director should be
welchen Gründen auch immer ersetzt wird, endet die Amtsdauer des an replaced for whatever reason, the term of office of the newly elected
seiner Stelle gewählten neuen Verwaltungsratsmitgliedes mit dem Ende member of the Board of Directors shall expire at the end of the term of
der Amtsdauer seines Vorgängers. office of his predecessor.
Artikel 25: Organisation des Verwaltungsrats, Article 25: Organization of the Board, Remuneration
Entschädigung
1 1
Der Verwaltungsrat wählt aus seiner Mitte einen The Board of Directors shall elect from among its members a Chairman.
Verwaltungsratspräsidenten. Er kann einen oder mehrere It may elect one or more Vice−Chairmen. It shall further appoint a
Vizepräsidenten wählen. Er bestellt weiter einen Sekretär, welcher nicht Secretary, who need not be a member of the Board of Directors. Subject
Mitglied des Verwaltungsrates sein muss. Der Verwaltungsrat regelt to applicable law and these Articles of Association, the Board of
unter Einhaltung der Bestimmungen des Gesetzes und dieser Statuten die Directors shall establish the particulars of its organization in By−Laws.
Einzelheiten seiner Organisation in einem Organisationsreglement.
2 2
Die Mitglieder des Verwaltungsrates haben Anspruch auf Ersatz ihrer The members of the Board of Directors shall be entitled to
im Interesse der Gesellschaft aufgewendeten Auslagen sowie auf eine reimbursement of all expenses incurred in the interest of the Company,
ihrer Tätigkeit und Verantwortung entsprechende Entschädigung, deren as well as remuneration for their services that is appropriate in view of
Betrag der Verwaltungsrat auf Antrag eines Ausschusses des their functions and responsibilities. The amount of the remuneration shall
Verwaltungsrates festlegt. be determined by the Board of Directors upon recommendation by a
committee of the Board of Directors.
3 3
Im Rahmen des gesetzlich Zulässigen, hält die Gesellschaft The Company shall indemnify and hold harmless, to the fullest extent
gegenwärtige und ehemalige Mitglieder des Verwaltungsrates und der permitted by law, the existing and former members of the Board of
Geschäftsleitung sowie deren Erben, Konkurs− oder Nachlassmassen aus Directors and officers, and their heirs, executors and administrators, out
Gesellschaftsmitteln für Kosten, −Abgaben, Verluste, Schäden und of the assets of the Company from and against all threatened, pending or
Auslagen aus drohenden, hängigen oder abgeschlossenen Klagen, completed actions, suits or proceedings — whether civil, criminal,
Verfahren oder Untersuchungen zivil−, straf− oder administrative or investigative — and all costs, charges, losses, damages
verwaltungsrechtlicher oder anderer Natur schadlos, welche ihnen oder and expenses which they or any of them, their heirs, executors or
ihren Erben, Konkurs− oder Nachlassmassen entstehen aufgrund von administrators, shall or may incur or sustain by or by reason of any act
tatsächlichen oder behaupteten Handlungen, Zustimmungen oder done or alleged to be done, concurred or alleged to be concurred in or
Unterlassungen anlässlich oder im Zusammenhang mit der Ausübung omitted or alleged to be omitted in or about the execution of their duty,
ihrer Pflichten oder behaupteten Pflichten oder aufgrund der Tatsache, or alleged duty, or by reason of the fact that he is or was a member of the
dass sie Mitglieder des Verwaltungsrates oder der Geschäftsleitung der Board of Directors or officer of the Company, or while serving as a
Gesellschaft sind oder waren oder auf Aufforderung der Gesellschaft member of the Board of Directors or officer of the Company is or was
Mitglied des Verwaltungsrates, der Geschäftsleitung oder als serving at the request of the Company as a director, officer, employee or
Arbeitnehmer oder Agent einer anderen Gesellschaft, einer agent of another corporation, partnership, joint venture, trust or other
nicht−rechtsfähigen Personengesellschaft, eines Joint Ventures, eines enterprise.
Trusts oder einer sonstigen Geschäftseinheit sind oder waren.
24
4 4
Ohne den vorangehenden Absatz 3 dieses Artikels 25 einzuschränken, Without limiting the foregoing para. 3 of this Article 25, the Company
bevorschusst die Gesellschaft gegenwärtigen und ehemaligen shall advance court costs and attorneys’ fees to the existing and former
Mitgliedern des Verwaltungsrates und der Geschäftsleitung members of the Board of Directors and officers. The Company may
Gerichts−und Anwaltskosten. Die Gesellschaft kann solche Vorschüsse however recover such advanced costs if any of said Persons is found, in a
zurückfordern, wenn ein zuständiges Gericht oder eine zuständige final judgment or decree of a court or governmental or administrative
Verwaltungsbehörde in einem endgültigen, nicht weiterziehbaren Urteil authority of competent jurisdiction not subject to appeal, to have
bzw. Entscheid zum Schluss kommt, dass eine der genannten committed an intentional or grossly negligent breach of his statutory
Zivilrechtlichen Personen ihre Pflichten als Mitglied des duties as a Director of officer.
Verwaltungsrates oder der Geschäftsleitung absichtlich oder
grobfahrlässig verletzt hat.
5 5
Jede Aufhebung oder Änderung von Absatz 3 oder Absatz 4 dieses Any repeal or modification of para. 3 or para. 4 of this Article 25 shall
Artikels 25 lassen alle am Aufhebungs− oder Änderungszeitpunkt bereits not affect any rights or obligations then existing.
bestehenden Rechte oder Verpflichtungen unberührt.
Artikel 26: Befugnisse des Verwaltungsrats Article 26: Specific Powers of the Board
1 1
Der Verwaltungsrat hat die in Artikel 716a OR statuierten The Board of Directors has the non−delegable and inalienable duties as
unübertragbaren und unentziehbaren Aufgaben, insbesondere: specified in Article 716a CO, in particular:
(a) die Oberleitung der Gesellschaft und die Erteilung der nötigen (a) the ultimate direction of the business of the Company and the
Weisungen; issuance of the required directives;
25
(b) die Festlegung der Organisation der Gesellschaft; und (b) the determination of the organization of the Company; and
(c) die Oberaufsicht über die mit der Geschäftsführung betrauten (c) the ultimate supervision of the individuals entrusted with
Personen, namentlich im Hinblick auf die Befolgung der Gesetze, management duties, in particular with regard to compliance with
Statuten, Reglemente und Weisungen. law, these Articles of Association, By−Laws, regulations and
directives.
2 2
Der Verwaltungsrat kann überdies in allen Angelegenheiten Beschluss In addition, the Board of Directors may pass resolutions with respect to
fassen, die nicht nach Gesetz oder Statuten der Generalversammlung all matters that are not reserved to the General Meeting of Shareholders
zugeteilt sind. by law or under these Articles of Association.
3 3
Der Verwaltungsrat kann Beteiligungspläne der Gesellschaft der The Board of Directors may submit benefit or incentive plans of the
Generalversammlung zur Genehmigung vorlegen. Company to the General Meeting of Shareholders for approval.
Artikel 27: Kompetenzdelegation Article 27: Delegation of Powers
Der Verwaltungsrat kann unter Vorbehalt von Artikel 26 Absatz 1 dieser Subject to Article 26 para. 1 of these Articles of Association and the
Statuten sowie des OR die Geschäftsführung nach Massgabe eines applicable provisions of the CO, the Board of Directors may delegate the
Organisationsreglements ganz oder teilweise an eines oder mehrere management of the Company in whole or in part to individual directors,
seiner Mitglieder, an einen oder mehrere Ausschüsse des one or more committees of the Board of Directors or to persons other
Verwaltungsrates oder an Dritte übertragen. than Directors pursuant to By−Laws.
Artikel 28: Sitzung des Verwaltungsrats Article 28: Meeting of the Board of Directors
1 1
Sofern das vom Verwaltungsrat erlassene Organisationsreglement nichts Except as otherwise set forth in By−Laws of the Board of Directors, the
anderes festlegt, ist zur gültigen Beschlussfassung über Geschäfte des attendance quorum necessary for the transaction of the business of the
Verwaltungsrates die Anwesenheit einer Mehrheit der Mitglieder des Board of Directors shall be a majority of the whole Board of Directors.
gesamten Verwaltungsrates notwendig. Kein Präsenzquorum ist No attendance quorum shall be required for resolutions of the Board of
erforderlich für die Feststellungsbeschlüsse des Verwaltungsrates im Directors providing for the confirmation of a capital increase or for the
Zusammenhang mit Kapitalerhöhungen und die entsprechenden amendment of the Articles of Association in connection therewith.
Statutenanpassungen.
2 2
Der Verwaltungsrat fasst seine Beschlüsse mit einer Mehrheit der von The Board of Directors shall pass its resolutions with the majority of the
den anwesenden Verwaltungsräten abgegebenen Stimmen, vorausgesetzt, votes cast by the Directors present at a meeting at which the attendance
das Präsenzquorum von Absatz 1 dieses Artikels 28 ist erfüllt. Der quorum of para. 1 of this Article 28 is satisfied. The Chairman shall have
Verwaltungsratspräsident hat bei Stimmengleichheit keinen no casting vote.
Stichentscheid.
26
Artikel 29: Zeichnungsberechtigung Article 29: Signature Power
Die rechtsverbindliche Vertretung der Gesellschaft durch Mitglieder des The due and valid representation of the Company by members of the
Verwaltungsrates und durch Dritte wird in einem Organisationsreglement Board of Directors and other persons shall be set forth in By−Laws.
festgelegt.
C. Revisionsstelle C. Auditor
Artikel 30: Amtsdauer, Befugnisse und Pflichten Article 30: Term, Power, Duties
1 1
Die Revisionsstelle wird von der ordentlichen Generalversammlung The auditor shall be elected by the Annual General Meeting and shall
gewählt und es obliegen ihr die vom Gesetz zugewiesenen Befugnisse have the powers and duties vested in it by law.
und Pflichten.
2 2
Die Amtsdauer der Revisionsstelle beginnt am Tage der Wahl an einer The term of office of the auditor shall commence on the day of election
ordentlichen Generalversammlung und endet am Tage der Wiederwahl at an Annual General Meeting and terminate on the day that auditor is
der aktuellen Revisionsstelle oder am Tag der Wahl einer anderen re−elected or that auditor’s successor is elected.
Revisionsstelle als Nachfolgerin der bisherigen Revisionsstelle.
IV. Jahresrechnung, Konzernrechnung und Gewinnverteilung IV. Annual Statutory Financial Statements, Consolidated Financial
Statements and Profit; Allocation
Artikel 31: Geschäftsjahr Article 31: Fiscal Year
Der Verwaltungsrat legt das Geschäftsjahr fest. The Board of Directors determines the fiscal year.
Artikel 32: Verteilung des Bilanzgewinns, Reserven Article 32: Allocation of Profit Shown on the Annual Statutory
Balance Sheet, Reserves
1 1
Über den Bilanzgewinn verfügt die Generalversammlung im Rahmen The profit shown on the annual statutory balance sheet shall be allocated
der anwendbaren gesetzlichen Vorschriften. Der Verwaltungsrat by the General Meeting of Shareholders in accordance with applicable
unterbreitet der Generalversammlung seine Vorschläge betreffend die law. The Board of Directors shall submit its proposals with respect to the
Behandlung sämtlicher Zuweisungen. treatment of any allocation to the General Meeting of Shareholders.
2 2
Neben der gesetzlichen Reserve können weitere Reserven geschaffen Further reserves may be taken in addition to the reserves required by
werden. law.
3 3
Dividenden, welche nicht innerhalb von fünf Jahren nach ihrem Dividends that have not been collected within five years after their
Auszahlungsdatum bezogen werden, fallen an die Gesellschaft und payment date shall enure to the Company and be allocated to the general
werden in die allgemeinen gesetzlichen Reserven verbucht. statutory reserves.
27
V. Auflösung, Liquidation V. Winding−up and Liquidation
Artikel 33: Auflösung und Liquidation Article 33: Winding−up and Liquidation
1 1
Die Generalversammlung kann jederzeit die Auflösung und Liquidation The General Meeting of Shareholders may at any time resolve on the
der Gesellschaft nach Massgabe der gesetzlichen und statutarischen winding−up and liquidation of the Company pursuant to applicable law
Vorschriften beschliessen. and the provisions set forth in these Articles of Association.
2 2
Die Liquidation wird durch den Verwaltungsrat durchgeführt, sofern sie The liquidation shall be effected by the Board of Directors, unless the
nicht durch die Generalversammlung anderen Zivilrechtlichen Personen General Meeting of Shareholders shall appoint other Persons as
übertragen wird. liquidators.
3 3
Die Liquidation der Gesellschaft erfolgt nach Massgabe der gesetzlichen The liquidation of the Company shall be effectuated pursuant to the
Vorschriften. statutory provisions.
4 4
Nach erfolgter Tilgung der Schulden wird das Vermögen nach Upon discharge of all liabilities, the assets of the Company shall be
Massgabe der eingezahlten Beträge unter den Aktionären verteilt, soweit distributed to the shareholders pursuant to the amounts paid−up, unless
diese Statuten nichts anderes vorsehen. these Articles of Association provide otherwise.
VI. Bekanntmachungen, Mitteilungen VI. Announcements, Communications
Artikel 34: Bekanntmachungen, Mitteilungen Article 34: Announcements, Communications

1 1
Publikationsorgan der Gesellschaft ist das Schweizerische The official means of publication of the Company shall be the Swiss
Handelsamtsblatt. Official Gazette of Commerce.
2 2
Soweit keine individuelle Benachrichtigung durch das Gesetz, To the extent that individual notification is not required by law, stock
börsengesetzliche Bestimmungen oder diese Statuten verlangt wird, exchange regulations or these Articles of Association, all
gelten sämtliche Mitteilungen an die Aktionäre als gültig erfolgt, wenn communications to the shareholders shall be deemed valid if published in
sie im Schweizerischen Handelsamtsblatt veröffentlicht worden sind. the Swiss Official Gazette of Commerce. Written communications by the
Schriftliche Bekanntmachungen der Gesellschaft an die Aktionäre Company to its shareholders shall be sent by ordinary mail to the last
werden auf dem ordentlichen Postweg an die letzte im Aktienbuch address of the shareholder or authorized recipient recorded in the share
verzeichnete Adresse des Aktionärs oder des bevollmächtigten register. Financial institutions holding Shares for beneficial owners and
Empfängers geschickt. Finanzinstitute, welche Aktien für wirtschaftlich recorded in such capacity in the share register shall be deemed to be
Berechtigte halten und entsprechend im Aktienbuch eingetragen sind, authorized recipients.
gelten als bevollmächtigte Empfänger.
28
VII. Verbindlicher Originaltext VII. Original Language
Falls sich zwischen der deutsch− und der englischsprachigen Fassung In the event of deviations between the German and English version of
dieser Statuten Differenzen ergeben, hat die deutschsprachige Fassung these Articles of Association, the German text shall prevail.
Vorrang.
VIII. Definitionen VIII. Definitions
Artikel 35: Definitionen Article 35: Definitions
Aktie Shares
Der Begriff Aktie(n) hat die in Artikel 4 dieser Statuten aufgeführte The term Share(s) has the meaning assigned to it in Article 4 of these
Bedeutung. Articles of Association.
Ausserordentliche Generalversammlung Extraordinary General Meeting
Der Begriff ausserordentliche Generalversammlung hat die in Artikel 14 The term Extraordinary General Meeting has the meaning assigned to it
Absatz 1 dieser Statuten aufgeführte Bedeutung. in Article 14 para. 1 of these Articles of Association.
Clearing Nominee Clearing Nominee
Clearing Nominee bedeutet Nominees von Clearing Gesellschaften für Clearing Nominee means nominees of clearing organizations for the
Aktien (wie beispielsweise Cede & Co., der Nominee der Depository Shares (such as Cede & Co., the nominee of the Depository Trust
Trust Company, eine US securities and clearing agency), im Einklang Company, a United States securities depositary and clearing agency) in
mit den durch den Verwaltungsrat erlassenen Bestimmungen. accordance with regulations issued by the Board of Directors.
Eigentümer Owner
Eigentümer(in), unter Einschluss der Begriffe Eigentum, halten, Owner, including the terms Own, Owned and Ownership when used with
gehalten, Eigentümerschaft oder ähnlicher Begriffe, bedeutet, wenn respect to any Shares means a Person that individually or with or through
verwendet mit Bezug auf Aktien, jede Zivilrechtliche Person, welche any of its Affiliates or Associates:
allein oder zusammen mit oder über Nahestehende(n) Gesellschaften
oder Nahestehende(n) Personen:
(a) wirtschaftliche Eigentümerin dieser Aktien ist, ob direkt oder (a) beneficially Owns such Shares, directly or indirectly;
indirekt;
29
(b) (1) das Recht hat, aufgrund eines Vertrags, einer Absprache oder (b) has (1) the right to acquire such Shares (whether such right is
einer anderen Vereinbarung, oder aufgrund der Ausübung eines exercisable immediately or only after the passage of time) pursuant
Wandel−, Tausch−, Bezugs− oder Optionsrechts oder anderweitig to any agreement, arrangement or understanding, or upon the
Aktien zu erwerben (unabhängig davon, ob dieses Recht sofort exercise of conversion rights, exchange rights, warrants or options,
ausübbar ist oder nur nach einer gewissen Zeit); vorausgesetzt, dass or otherwise; provided, however, that a Person shall not be deemed
eine Person nicht als Eigentümerin derjenigen Aktien gilt, die im the Owner of Shares tendered pursuant to a tender or exchange offer
Rahmen eines Übernahme− oder Umtauschangebots, das diese made by such Person or any of such Person’s Affiliates or
Zivilrechtliche Person oder eine dieser Zivilrechtlichen Person Associates until such tendered Shares are accepted for purchase or
Nahestehende Gesellschaft oder Nahestehende Person gemacht hat, exchange; or (2) the right to vote such Shares pursuant to any
angedient werden, bis diese Aktien verbindlich zum Kauf oder agreement, arrangement or understanding; provided, however, that a
Tausch akzeptiert werden; oder (2) das Recht hat, die Stimmrechte Person shall not be deemed the Owner of any Shares because of
dieser Aktien aufgrund eines Vertrags, einer Absprache oder einer such Person’s right to vote such Shares if the agreement,
anderen Vereinbarung auszuüben; vorausgesetzt, dass eine arrangement or understanding to vote such Shares arises solely from
Zivilrechtliche Person nicht als Eigentümerin von Aktien gilt, sofern a revocable proxy or consent given in response to a proxy or consent
ihr Recht, das Stimmrecht auszuüben auf einem Vertrag, einer solicitation made to 10 or more Persons; or
Absprache oder einer anderen Vereinbarung beruht, welche(r) nur
aufgrund einer widerruflichen Vollmacht (proxy) oder Zustimmung
zustande gekommen ist, die in Erwiderung auf eine an 10 oder mehr
Zivilrechtliche Personen gemachte diesbezügliche Aufforderung
ergangen ist; oder
(c) zwecks Erwerbs, Haltens, Stimmrechtsausübung (mit Ausnahme der (c) has any agreement, arrangement or understanding for the purpose of
Stimmrechtsausübung aufgrund einer widerruflichen Vollmacht acquiring, holding, voting (except voting pursuant to a revocable
(proxy) oder Zustimmung wie in diesen Statuten umschrieben) oder proxy or consent as described in these Articles of Association), or
Veräusserung dieser Aktien mit einer anderen Zivilrechtlichen disposing of such Shares with any other Person that beneficially
Person in einen Vertrag, eine Absprache oder eine andere Owns, or whose Affiliates or Associates beneficially Own, directly
Vereinbarung getreten ist, die direkt oder indirekt entweder selbst or indirectly, such Shares.
oder über ihr Nahestehende Gesellschaften oder Nahestehende
Personen wirtschaftlich Eigentümerin dieser Aktien ist.
Generalversammlung General Meeting of Shareholders
Der Begriff Generalversammlung hat die in Artikel 15 Absatz 1 dieser The term General Meeting of Shareholders has the meaning assigned to it
Statuten aufgeführte Bedeutung. in Article 15 para. 1 of these Articles of Association.
30
Gesamtstimmen Total Voting Shares
Der Begriff “Gesamtstimmen” bedeutet die Gesamtzahl aller an einer Total Voting Shares means the total number of Shares entitled to vote at
Generalversammlung stimmberechtigen Aktien unabhängig davon, ob a General Meeting of Shareholders whether or not represented at such
die stimmberechtigten Aktien an der Generalversammlung vertreten sind meeting.
oder nicht.
Gesellschaft Company
Der Begriff Gesellschaft hat die in Artikel 1 dieser Statuten aufgeführte The term Company has the meaning assigned to it in Article 1 of these
Bedeutung. Articles of Association.
Kontrolle Control
Kontrolle, einschliesslich der Begriffe kontrollierend, kontrolliert von Control, including the terms controlling, controlled by and under
und unter gemeinsamer Kontrolle mit, bedeutet die Möglichkeit, direkt common control with, means the possession, direct or indirect, of the
oder indirekt auf die Geschäftsführung und die Geschäftspolitik einer power to direct or cause the direction of the management and policies of
Zivilrechtlichen Person Einfluss zu nehmen, sei es aufgrund des Haltens a Person, whether through the Ownership of voting shares, by contract,
von Stimmrechten, eines Vertrags oder auf andere Weise. Eine or otherwise. A Person who is the Owner of 20% or more of the issued or
Zivilrechtliche Person, welche 20% oder mehr der ausgegebenen oder outstanding voting shares of any corporation, partnership, unincorporated
ausstehenden Stimmrechte einer Kapitalgesellschaft, rechts− oder association or other entity shall be presumed to have control of such
nicht−rechtsfähigen Personengesellschaft oder eines anderen entity, in the absence of proof by a preponderance of the evidence to the
Rechtsträgers hält, hat mangels Nachweises des Gegenteils unter contrary. Notwithstanding the foregoing, a presumption of control shall
Anwendung des Beweismasses der überwiegenden Wahrscheinlichkeit not apply where such Person holds voting shares, in good faith and not
der Beweismittel vermutungsweise Kontrolle über einen solchen for the purpose of circumventing this provision, as an agent, bank,
Rechtsträger. Ungeachtet des Voranstehenden gilt diese Vermutung der broker, nominee, custodian or trustee for one or more Owners who do
Kontrolle nicht, wenn eine Zivilrechtliche Person in Treu und Glauben not individually or as a group have control of such entity.
und nicht zur Umgehung dieser Bestimmung Stimmrechte als
Stellvertreter (agent), Bank, Börsenmakler (broker), Nominee,
Depotbank (custodian) oder Treuhänder (trustee) für einen oder mehrere
Eigentümer hält, die für sich allein oder zusammen als Gruppe keine
Kontrolle über den betreffenden Rechtsträger haben.
Mit Umwandlungsrechten verbundene Obligationen Rights−Bearing Obligations
Der Begriff mit Umwandlungsrechten verbundene Obligationen hat die The term Rights−Bearing Obligations has the meaning assigned to it in
in Artikel 7 Absatz 1(a) dieser Statuten aufgeführte Bedeutung. Article 7 para. 1(a) of these Articles of Association.
31
Nahestehender Aktionäre Interested Shareholder
Nahestehender Aktionär bedeutet jede Zivilrechtliche Person (unter Interested Shareholder means any Person (other than the Company or
Ausschluss der Gesellschaft oder jeder direkten oder indirekten any direct or indirect majority−Owned subsidiary of the Company) (i)
Tochtergesellschaft, die zur Mehrheit von der Gesellschaft gehalten that is the Owner of 15% or more of the share capital registered in the
wird), (i) die Eigentümerin von 15% oder mehr des im Handelsregister Commercial Register (excluding treasury shares) or (ii) that is an
eingetragenen Aktienkapitals (die eigenen Aktien der Gesellschaft davon Affiliate or Associate of the Company and was the Owner of 15% or
ausgenommen) ist, oder (ii) die als Nahestehende Gesellschaft oder more of the share capital registered in the Commercial Register
Nahestehende Person anzusehen ist und irgendwann in den drei (excluding treasury shares) at any time within the three−year period
unmittelbar vorangehenden Jahren vor dem Zeitpunkt, zu dem bestimmt immediately prior to the date on which it is sought to be determined
werden muss, ob diese Zivilrechtliche Person ein Nahestehender whether such Person is an Interested Shareholder, and also the Affiliates
Aktionär ist, Eigentümerin von 15% oder mehr des im Handelsregister and Associates of such Person; provided, however, that the term
eingetragenen Aktienkapitals (die eigenen Aktien der Gesellschaft davon Interested Shareholder shall not include any Person whose Ownership of
ausgenommen) gewesen ist, ebenso wie jede Nahestehende Gesellschaft Shares in excess of the 15% limitation is the result of action taken solely
und Nahestehende Person dieser Zivilrechtlichen Person; vorausgesetzt, by the Company; provided that such Person shall be an Interested
dass eine Zivilrechtliche Person nicht als Nahestehender Aktionär gilt, Shareholder if thereafter such Person acquires additional Shares, except
die aufgrund von Handlungen, die ausschliesslich der Gesellschaft as a result of further corporate action not caused, directly or indirectly,
zuzurechnen sind, Eigentümerin von Aktien in Überschreitung der by such Person. For the purpose of determining whether a Person is an
15%−Beschränkung ist; wobei jedoch jede solche Zivilrechtliche Person Interested Shareholder, the Shares deemed to be in issue shall include
dann als Nahestehender Aktionär gilt, falls sie später zusätzliche Aktien Shares deemed to be Owned by the Person (through the application of
erwirbt, ausser dieser Erwerb erfolgt aufgrund von weiteren the definition of Owner in these Articles of Association) but shall not
Gesellschaftshandlungen, die weder direkt noch indirekt von dieser include any other unissued Shares which may be issuable pursuant to any
Zivilrechtlichen Person ausgehen. Zur Bestimmung, ob eine agreement, arrangement or understanding, or upon exercise of conversion
Zivilrechtliche Person ein Nahestehender Aktionär ist, sind die als rights, warrants or options, or otherwise.
ausgegeben geltenden Aktien unter Einschluss der von dieser
Zivilrechtlichen Person gehaltenen Aktien (unter Anwendung des
Begriffs “Eigentümer” wie in diesen Statuten definiert) zu berechnen,
jedoch unter Ausschluss von nichtausgegebenen Aktien, die aufgrund
eines Vertrags, einer Absprache oder einer anderen Vereinbarung, oder
aufgrund der Ausübung eines Wandel−, Bezugs− oder Optionsrechts
oder anderweitig ausgegeben werden können.
32
Nahestehende Gesellschaft Affiliate
Nahestehende Gesellschaft bedeutet jede Zivilrechtliche Person, die Affiliate means a Person that directly, or indirectly through one or more
direkt oder indirekt über eine oder mehrere Mittelspersonen eine andere intermediaries, controls, or is controlled by, or is under common control
Person kontrolliert, von einer anderen Zivilrechtlichen Person with, another Person.
kontrolliert wird, oder unter gemeinsamer Kontrolle mit einer anderen
Zivilrechtlichen Person steht.
Nahestehende Person Associate
Nahestehende Person bedeutet, wenn verwendet zur Bezeichnung einer Associate, when used to indicate a relationship with any Person, means
Beziehung zu einer Zivilrechtlichen Person, (i) jede Kapitalgesellschaft, (i) any corporation, partnership, unincorporated association or other
rechts− oder nicht−rechtsfähige Personengesellschaft oder ein anderer entity of which such Person is a director, officer or partner or is, directly
Rechtsträger, von welcher diese Zivilrechtliche Person Mitglied des or indirectly, the Owner of 20% or more of any class of voting shares,
Leitungs− oder Verwaltungsorgans, der Geschäftsleitung oder (ii) any trust or other estate in which such Person has at least a 20%
Gesellschafter ist oder von welcher diese Person, direkt oder indirekt, beneficial interest or as to which such Person serves as trustee or in a
Eigentümerin von 20% oder mehr einer Kategorie von Aktien oder similar fiduciary capacity, and (iii) any relative or spouse of such Person,
anderen Anteilsrechten ist, die ein Stimmrecht vermitteln, (ii) jedes or any relative of such spouse, who has the same residence as such
Treuhandvermögen (Trust) oder jede andere Vermögenseinheit, an der Person.
diese Zivilrechtliche Person wirtschaftlich einen Anteil von 20% oder
mehr hält oder in Bezug auf welche diese Zivilrechtliche Person als
Verwalter (trustee) oder in ähnlich treuhändischer Funktion tätig ist, und
(iii) jeder Verwandte, Ehe− oder Lebenspartner dieser Person, oder jede
Verwandte des Ehe− oder Lebenspartners, jeweils soweit diese den
gleichen Wohnsitz haben wie diese Person.
OR CO
Der Begriff OR hat die in Artikel 1 dieser Statuten aufgeführte The term CO has the meaning assigned to it in Article 1 of these Articles
Bedeutung. of Association.
Ordentliche Generalversammlung Annual General Meeting
Der Begriff ordentliche Generalversammlung hat die in Artikel 13 The term Annual General Meeting has the meaning assigned to it in
Absatz 1 dieser Statuten aufgeführte Bedeutung. Article 13 para. 1 of these Articles of Association.
33
Organisationsreglement By−Laws
Das vom Verwaltungsrat erlassene Organisationsreglement, jeweils in The By−Laws released by the Board of Directors in their most recent
seiner aktuellsten Fassung. version.
SEC SEC
Der Begriff SEC hat die in Artikel 14 Absatz 2(b) dieser Statuten The term SEC has the meaning assigned to it in Article 14 para. 2(b) of
aufgeführte Bedeutung. these Articles of Association.
Transfer Agent Transfer Agent
Der Begriff Transfer Agent hat die in Artikel 8 Absatz 3 dieser Statuten The term Transfer Agent has the meaning assigned to it in Article 8 para.
aufgeführte Bedeutung. 3 of these Articles of Association.
Umwandlungsrechte Rights
Der Begriff Umwandlungsrechte hat die in Artikel 7 Absatz 1(a) dieser The term Rights has the meaning assigned to it in Article 7 para. 1(a) of
Statuten aufgeführte Bedeutung. these Articles of Association.
Zivilrechtliche Person Person
Zivilrechtliche Person bedeutet jede natürliche Person, Person means any individual, corporation, partnership, unincorporated
Kapitalgesellschaft, rechts− oder nicht−rechtsfähige Personengesellschaft association or other entity.
oder jeder andere Rechtsträger.
Zusammenschluss Business Combination
Zusammenschluss bedeutet, wenn im Rahmen dieser Statuten in Bezug Business Combination, when used in these Articles of Association in
auf die Gesellschaft oder einen Nahestehenden Aktionär der Gesellschaft reference to the Company and any Interested Shareholder of the
verwendet: Company, means:
(a) jede Fusion oder andere Form des Zusammenschlusses der (a) any merger or consolidation of the Company or any direct or indirect
Gesellschaft oder einer direkten oder indirekten Tochtergesellschaft, majority−Owned subsidiary of the Company with (1) the Interested
die zur Mehrheit von der Gesellschaft gehalten wird, mit (1) dem Shareholder or (2) any other corporation, partnership,
Nahestehenden Aktionär oder (2) einer anderen Kapitalgesellschaft, unincorporated association or other entity if the merger or
rechts− oder nicht−rechtsfähigen Personengesellschaft oder einem consolidation is caused by the Interested Shareholder and as a result
anderen Rechtsträger, soweit diese Fusion oder andere Form des of such merger or consolidation Article 12(f) and Article 21 para. 4
Zusammenschlusses durch den Nahestehenden Aktionär verursacht of these Articles of Association (including the relevant definitions in
worden ist und als Folge dieser Fusion oder anderen Form des these Articles of Association pertaining thereto) or a provision
Zusammenschlusses Artikel 12(f) und Artikel 21 Absatz 4 dieser substantially the same as such Article 12(f) and Article 21 para. 4
Statuten (sowie jede der dazu gehörigen Definition in diesen (including the relevant definitions in these Articles of Association)
Statuten) oder im Wesentlichen gleiche Bestimmungen wie Artikel are not applicable to the surviving entity;
12(f) und Artikel 21 Absatz 4 (sowie die dazugehörigen
Definitionen in diesen Statuten) auf den überlebenden Rechtsträger
nicht anwendbar sind;
34
(b) jeder Verkauf, jede Vermietung oder Verpachtung, jeder Tausch, (b) any sale, lease, exchange, mortgage, pledge, transfer or other
jede hypothekarische Belastung oder andere Verpfändung, disposition (in one transaction or a series of transactions), except
Übertragung oder andere Verfügung (ob in einer oder mehreren proportionately as a shareholder, to or with the Interested
Transaktionen) von oder über Vermögenswerte(n) der Gesellschaft Shareholder, whether as part of a dissolution or otherwise, of assets
oder einer direkten oder indirekten Tochtergesellschaft, die zur of the Company or of any direct or indirect majority−Owned
Mehrheit von der Gesellschaft gehalten wird, an einen subsidiary of the Company which assets have an aggregate market
Nahestehenden Aktionär (ausser soweit der Zuerwerb unter einer value equal to 10% or more of either the aggregate market value of
der genannten Transaktionen proportional als Aktionär erfolgt), all the assets of the Company determined on a consolidated basis or
soweit diese Vermögenswerte einen Marktwert von 10% oder mehr the aggregate market value of all the Shares then in issue;
entweder des auf konsolidierter Basis aggregierten Marktwertes
aller Vermögenswerte der Gesellschaft oder des aggregierten
Marktwertes aller dann ausgegebenen Aktien haben, unabhängig
davon, ob eine dieser Transaktionen Teil einer Auflösung der
Gesellschaft ist oder nicht;
(c) jede Transaktion, die dazu führt, dass die Gesellschaft oder eine (c) any transaction which results in the issuance or transfer by the
direkte oder indirekte Tochtergesellschaft, die zur Mehrheit von der Company or by any direct or indirect majority−Owned subsidiary of
Gesellschaft gehalten wird, Aktien oder the Company of any Shares or shares of such subsidiary to the
Tochtergesellschafts−Aktien an den Nahestehenden Aktionär Interested Shareholder, except (1) pursuant to the exercise, exchange
ausgibt oder überträgt, es sei denn (1) aufgrund der Ausübung, des or conversion of securities exercisable for, exchangeable for or
Tauschs oder der Wandlung von Finanzmarktinstrumenten, die in convertible into Shares or the shares of a direct or indirect
Aktien oder Aktien einer direkten oder indirekten majority−Owned subsidiary of the Company which securities were
Tochtergesellschaft, die zur Mehrheit von der Gesellschaft gehalten in issue prior to the time that the Interested Shareholder became
wird, ausgeübt, getauscht oder gewandelt werden können, such; (2) pursuant to a dividend or distribution paid or made, or the
vorausgesetzt, die betreffenden Finanzmarktinstrumente waren zum exercise, exchange or conversion of securities exercisable for,
Zeitpunkt, in dem der Nahestehende Aktionär zu einem solchem exchangeable for or convertible into Shares or the shares of a direct
wurde, bereits ausgegeben; (2) als Dividende oder Ausschüttung, or indirect majority−Owned subsidiary of the Company which
oder aufgrund der Ausübung, des Tauschs oder der Wandlung von security is distributed, pro rata, to all shareholders subsequent to the
Finanzmarktinstrumenten, die in Aktien oder Aktien einer direkten time the Interested Shareholder became such; (3) pursuant to an
oder indirekten Tochtergesellschaft, die zur Mehrheit von der exchange offer by the Company to purchase Shares made on the
Gesellschaft gehalten wird, ausgeübt, getauscht oder gewandelt same terms to all holders of said Shares; or (4) any issuance or
werden können, vorausgesetzt, diese Finanzinstrumente werden transfer of Shares by the Company; provided, however, that in no
allen Aktionäre anteilsmässig ausgegeben, nachdem der case under (2)−(4) above shall there be an increase in the Interested
Nahestehende Aktionär zu einem solchem wurde; (3) gemäss einem Shareholder’s proportionate interest in the Shares;
Umtauschangebot der Gesellschaft, Aktien von allen Aktionären zu
den gleichen Bedingungen zu erwerben; oder (4) aufgrund der
Ausgabe oder der Übertragung von Aktien durch die Gesellschaft;
vorausgesetzt, dass in keinem der unter (2) bis (4) genannten Fällen
der proportionale Anteil des Nahestehenden Aktionärs an den
Aktien erhöht werden darf;
35
(d) jede Transaktion, in welche die Gesellschaft oder eine direkte oder (d) any transaction involving the Company or any direct or indirect
indirekte Tochtergesellschaft, die zur Mehrheit von der Gesellschaft majority−Owned subsidiary of the Company which has the effect,
gehalten wird, involviert ist, und die direkt oder indirekt dazu führt, directly or indirectly, of increasing the proportionate interest in the
dass der proportionale Anteil der vom Nahestehenden Aktionär Shares, or securities convertible into the Shares, or in the shares of
gehaltenen Aktien, in Aktien wandelbare Obligationen oder any such subsidiary which is Owned by the Interested Shareholder,
Tochtergesellschafts−Aktien erhöht wird, ausser eine solche except as a result of immaterial changes due to fractional share
Erhöhung ist nur unwesentlich und die Folge eines adjustments or as a result of any purchase or redemption of any
Spitzenausgleichs für Fraktionen oder eines Rückkaufs oder einer Shares not caused, directly or indirectly, by the Interested
Rücknahme von Aktien, soweit diese(r) weder direkt noch indirekt Shareholder; or
durch den Nahestehenden Aktionär verursacht wurde; oder
(e) jede direkte oder indirekte Gewährung von Darlehen, Vorschüssen, (e) any receipt by the Interested Shareholder of the benefit, directly or
Garantien, Bürgschaften, oder garantieähnlichen Verpflichtungen, indirectly (except proportionately as a shareholder), of any loans,
Pfändern oder anderen finanziellen Begünstigungen (mit Ausnahme advances, guarantees, pledges or other financial benefits (other than
einer solchen, die gemäss den Unterabschnitten (a) — (d) dieses those expressly permitted in subsections (a) — (d) immediately
Artikels ausdrücklich erlaubt ist sowie einer solchen, die above) provided by or through the Company or any direct or indirect
proportional an alle Aktionäre erfolgt) durch die oder über die majority−Owned subsidiary of the Company.
Gesellschaft oder eine direkte oder indirekte Tochtergesellschaft, die
zur Mehrheit von der Gesellschaft gehalten wird, an den
Nahestehenden Aktionär.
36
IX. Übergangsbestimmung IX. Transitional Provision
Artikel 36: Sacheinlagevertrag Article 36: Contribution in Kind Agreement
Die Gesellschaft übernimmt bei der Kapitalerhöhung vom 27. März 2009 In connection with the capital increase of March 27, 2009, and in
von der Noble Corporation in Grand Cayman, Cayman Islands accordance with the contribution in kind agreement dated as of
(“Noble−Cayman”), gemäss Sacheinlagevertrag vom 27. März 2009 March 27, 2009 (the “Contribution in Kind Agreement”), the Company
(“Sacheinlagevertrag”) 261’245’693 Aktien (ordinary shares) der acquires 261’245’693 ordinary shares of Noble Corporation, Grand
Noble−Cayman. Diese Aktien werden zu einem Übernahmewert von Cayman, Cayman Islands (“Noble−Cayman”). The shares of
insgesamt Schweizer Franken 10’676’100’000 übernommen. Als Noble−Cayman have a total value of Swiss Francs 10’676’100’000. As
Gegenleistung für diese Sacheinlage gibt die Gesellschaft einem consideration for this contribution, the Company issues to an exchange
Exchange Agent, handelnd auf Rechnung der Aktionäre der agent, acting for the account of the holders of ordinary shares of
Noble−Cayman im Zeitpunkt unmittelbar vor Vollzug des Noble−Cayman outstanding immediately prior to the completion of the
Sacheinlagevertrages und im Namen und auf Rechnung der Contribution in Kind Agreement and in the name and the account of
Noble−Cayman, insgesamt 276’245’693 voll einbezahlte Aktien mit Noble−Cayman, a total of 276’245’693 Shares with a total par value of
einem Nennwert von insgesamt Schweizer Franken 1’381’228’465 aus. Swiss Francs 1’381’228’465. The difference between the aggregate par
Die Gesellschaft weist die Differenz zwischen dem totalen Nennwert der value of the issued Shares and the total value of the contribution in the
ausgegebenen Aktien und dem Übernahmewert der Sacheinlage im amount of Swiss Francs 9’294’771’535 is allocated to the reserves of the
Gesamtbetrag von Schweizer Franken 9’294’771’535 den Reserven der Company.
Gesellschaft zu.
Zug, 30. April 2010 Zug, April 30, 2010
37
Inhaltsverzeichnis
Table of Contents
I. Allgemeine Bestimmungen 1
I. General Provisions 1
Artikel 1: Firma, Sitz, Dauer 1
Artikel 2: Zweck 1
Artikel 3: Dauer 2
II. Aktienkapital 2
II. Share Capital 2
Artikel 4: Anzahl Aktien, Nominalwert, Art 2
Artikel 5: Anerkennung der Statuten 2
Artikel 6: Genehmigtes Aktienkapital 2
Artikel 7: Bedingtes Aktienkapital 5
Artikel 8: Aktienzertifikate 7
Artikel 9: Aktienbuch, Eintragungsbeschränkungen, Nominees 9
Artikel 10: Rechtsausübung 10
III. Organe und Organisation der Gesellschaft 11
III. Corporate Bodies and Organization of the Company 11
Artikel 11: Gesellschaftsorgane 11
Artikel 12: Befugnisse 11
Artikel 13: Ordentliche Generalversammlung 12
Artikel 14: Ausserordentliche Generalversammlung 12
Artikel 15: Einberufung der Generalversammlung 13
Artikel 16: Traktandierung; Nominierungen 14
Artikel 17: Vorsitz der Generalversammlung, Protokoll, Stimmenzähler 16
Artikel 18: Recht auf Teilnahme, Vertretung der Aktionäre 17
Artikel 19: Stimmrechte 17
Artikel 20: Beschlüsse und Wahlen: Mehrheitserfordernisse 17
Artikel 21: Besonderes Stimmen Quorum 18
Artikel 22: Präsenzquorum 23
Artikel 23: Anzahl Verwaltungsräte 23
Artikel 24: Amtsdauer 24
Artikel 25: Organisation des Verwaltungsrats, Entschädigung 24
Artikel 26: Befugnisse des Verwaltungsrats 25
Artikel 27: Kompetenzdelegation 26
Artikel 28: Sitzung des Verwaltungsrats 26
Artikel 29: Zeichnungsberechtigung 27
Artikel 30: Amtsdauer, Befugnisse und Pflichten 27
38
IV. Jahresrechnung, Konzernrechnung und Gewinnverteilung 27
IV. Annual Statutory Financial Statements, Consolidated Financial Statements and Profit; Allocation 27
Artikel 31: Geschäftsjahr 27
Artikel 32: Verteilung des Bilanzgewinns, Reserven 27
V. Auflösung, Liquidation 28
V. Winding−up and Liquidation 28
Artikel 33: Auflösung und Liquidation 28
VI. Bekanntmachungen, Mitteilungen 28
VI. Announcements, Communications 28
Artikel 34: Bekanntmachungen, Mitteilungen 28
VII. Verbindlicher Originaltext 29
VII. Original Language 29
VIII. Definitionen 29
VIII. Definitions 29
Artikel 35: Definitionen 29
IX. Übergangsbestimmung 37
IX. Transitional Provision 37
Artikel 36: Sacheinlagevertrag 37
39
EXHIBIT 31.1

I, David W. Williams, certify that:
1. I have reviewed this quarterly report on Form 10−Q of Noble Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make
the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered
by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects
the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a−15(e) and 15d−15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a−15(f)
and 15d−15(f)) for the registrant and have:
a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us
by others within those entities, particularly during the period in which this report is being prepared;
b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under
our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements for external purposes in accordance with generally accepted accounting principles;
c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about
the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such
evaluation; and
d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s
most recent fiscal quarter (the registrant’s fourth fiscal quarter) that has materially affected, or is reasonably likely to materially
affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting,
to the registrant’s auditors and the audit committee of the registrant’s board of directors:
a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s
internal control over financial reporting.
Date: November 9, 2010
/s/ David W. Williams
David W. Williams
of Noble Corporation, a Swiss corporation, and
of Noble Corporation, a Cayman Islands company
1
EXHIBIT 31.2
I, Thomas L. Mitchell, certify that:
by this report;
evaluation; and
/s/ Thomas L. Mitchell
Thomas L. Mitchell
Senior Vice President, Chief Financial Officer, Treasurer and Controller
of Noble Corporation, a Swiss corporation
2
EXHIBIT 31.3
I, Dennis J. Lubojacky, certify that:
by this report;
evaluation; and
/s/ Dennis J. Lubojacky
Dennis J. Lubojacky
3
EXHIBIT 32.1

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES−OXLEY ACT OF 2002
In connection with the Quarterly Report of Noble Corporation, a Swiss corporation (“Noble−Swiss”), and Noble Corporation, a Cayman Islands
company (“Noble−Cayman”) on Form 10−Q for the period ended September 30, 2010, as filed with the United States Securities and Exchange
Commission on the date hereof (the “Report”), I, David W. Williams, Chairman, President and Chief Executive Officer of Noble−Swiss and President
and Chief Executive Officer of Noble−Cayman, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes−Oxley Act of 2002, that to the best of my knowledge:
(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the
Company.
November 9, 2010 /s/ David W. Williams

David W. Williams
of Noble Corporation, a Swiss corporation, and
4
EXHIBIT 32.2
In connection with the Quarterly Report of Noble Corporation (the “Company”) on Form 10−Q for the period ended September 30, 2010, as
filed with the United States Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas L. Mitchell, Senior Vice President,
Chief Financial Officer, Treasurer and Controller of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the Sarbanes−Oxley Act of 2002, that to the best of my knowledge:
Company.
November 9, 2010 /s/ Thomas L. Mitchell

Thomas L. Mitchell
Senior Vice President, Chief Financial Officer, Treasurer and
Controller of Noble Corporation, a Swiss corporation
5
EXHIBIT 32.3
In connection with the Quarterly Report of Noble Corporation (the “Company”) on Form 10−Q for the period ended September 30, 2010, as
filed with the United States Securities and Exchange Commission on the date hereof (the “Report”), I, Dennis J. Lubojacky, Vice President and Chief
Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes−Oxley Act of 2002,
that to the best of my knowledge:
Company.
November 9, 2010 /s/ Dennis J. Lubojacky

Dennis J. Lubojacky

NobleCorporation 10Q 20101109

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NOBLE CORP ( NE )

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

Title of each class Name of each exchange on which registered

Cayman Islands 98−0366361

Title of each class Name of each exchange on which registered

Item 1 Financial Statements

Noble Corporation (Noble−Swiss) Financial Statements:

Noble Corporation (Noble−Cayman) Financial Statements:

Notes to Combined Consolidated Financial Statements 13

Item 3 Quantitative and Qualitative Disclosures About Market Risk 61

Item 4 Controls and Procedures 63

PART II OTHER INFORMATION

Item 1 Legal Proceedings 64

Item 1A Risk Factors 64

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 66

PART I. FINANCIAL INFORMATION

September 30, December 31,

Total current assets 988,057 1,483,190

Property and equipment

Other assets 338,833 279,254

Total assets $ 11,006,424 $ 8,396,896

LIABILITIES AND EQUITY

Total current liabilities 589,442 433,947

Long−term debt 2,670,701 750,946

Total liabilities 3,805,334 1,608,464

Commitments and contingencies

Total shareholders’ equity 7,075,995 6,788,432

Noncontrolling interests 125,095 —

Total equity 7,201,090 6,788,432

Total liabilities and equity $ 11,006,424 $ 8,396,896

See accompanying notes to the unaudited consolidated financial statements.

NOBLE CORPORATION (NOBLE−SWISS) AND SUBSIDIARIES

Three Months Ended Nine Months Ended

612,618 905,635 2,163,391 2,700,658

Operating costs and expenses

504,261 401,222 1,363,526 1,196,332

Operating income 108,357 504,413 799,865 1,504,326

Other income (expense)

Income before income taxes 106,774 506,639 801,939 1,508,060

Net income 86,487 426,083 675,138 1,232,227

Net (income)/loss attributable to noncontrolling interests (467) — (467) —

Net income attributable to Noble Corporation $ 86,020 $ 426,083 $ 674,671 $ 1,232,227

Net income per share

Par value reduction/dividend per share $ 0.66 $ 0.04 $ 0.75 $ 0.08

NOBLE CORPORATION (NOBLE−SWISS) AND SUBSIDIARIES

Nine Months Ended

Net cash from operating activities 1,285,697 1,515,213

Cash flows from investing activities

Net cash from investing activities (2,511,524) (937,237)

Cash flows from financing activities

Net cash from financing activities 857,576 (335,194)

Net (decrease) increase in cash and cash equivalents (368,251) 242,782

Cash and cash equivalents, end of period $ 367,242 $ 756,093

See accompanying notes to the unaudited consolidated financial statements.

NOBLE CORPORATION (NOBLE−SWISS) AND SUBSIDIARIES

Balance at December 31,

Employee related equity