MCDERMOTT INTERNATIONAL INC
SEPARATION AGREEMENT
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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>h53997exv10w1.htm
<DESCRIPTION>SEPARATION AGREEMENT
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.1</B>
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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>SEPARATION AGREEMENT</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Separation Agreement (the &#147;Agreement&#148;) is entered into by and between, and shall inure to
the benefit of and be binding upon, the following parties:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Francis S. Kalman</B>, hereinafter referred to as &#147;Mr.&nbsp;Kalman&#148;; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>McDERMOTT INCORPORATED, </B>hereinafter referred to as the &#147;Company.&#148;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>WITNESSETH</B></U><B>:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Mr.&nbsp;Kalman resigned from employment with the Company on February&nbsp;29, 2008 (the
&#147;Resignation Date&#148;); and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Company and Mr.&nbsp;Kalman mutually desire to establish and agree upon the terms and
conditions of Mr.&nbsp;Kalman&#146;s separation from service.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the mutual promises and obligations set forth herein, Mr.
Kalman and the Company hereby agree as follows:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Payments by the Company</U>. If a bonus is paid to Company employees for fiscal year
2008 under the McDermott International, Inc. Executive Incentive Compensation Plan (the
&#147;EICP&#148;), the Company will pay a bonus to Mr.&nbsp;Kalman. The gross amount of such bonus shall be
calculated by multiplying Mr.&nbsp;Kalman&#146;s annualized base salary on January&nbsp;1, 2008 by 65%,
multiplying the resulting product by the applicable performance factor (not to exceed 2X), and
multiplying the resulting figure by two twelfths (2/12). Any such bonus shall be paid in
accordance with the Company&#146;s customary practice, but in no event later than March&nbsp;15, 2009,
and shall be subject to appropriate tax withholdings.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mr.&nbsp;Kalman previously received certain awards (the &#147;Awards&#148;) under the McDermott
International, Inc. 2001 Directors and Officers Long Term Incentive Plan (the &#147;LTIP&#148;).
Subject to the provisions of Paragraph&nbsp;5 below, Mr.&nbsp;Kalman&#146;s outstanding unvested</TD>
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    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Awards shall remain in full force and effect during the period from the Resignation Date
through February&nbsp;28, 2010 and any Awards scheduled to vest during that period shall become
vested and payable in accordance with the terms of the LTIP and the applicable Grant
Agreement. All other outstanding unvested Awards shall be forfeited on the Resignation
Date, unless a Change in Control event occurs and results in an early vesting on or before
February&nbsp;28, 2010.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Retiree Benefits</U>. As of the first day of the month coincident with or next following
his attainment of age 65, Mr.&nbsp;Kalman shall begin receiving benefits under the Retirement Plan
for Employees of McDermott Incorporated and Participating Subsidiary and Affiliated Companies
and, subject to Paragraph&nbsp;5 below, under the Restoration of Retirement Income Plan (the
&#147;Excess Plan&#148;). In addition, Mr.&nbsp;Kalman shall be entitled to receive the portion of his
account balance in the McDermott International, Inc. New Supplemental Executive Retirement
Plan (&#147;SERP&#148;) in which he is vested as of his Resignation Date, and the vesting of the
remaining portion of his SERP account shall be accelerated so that, subject to Paragraph&nbsp;5
below, Mr.&nbsp;Kalman is 100% vested in such account as of his Resignation Date. SERP benefits
shall be distributed in accordance with Mr.&nbsp;Kalman&#146;s existing election, in a single lump sum
payment on the first day of the calendar month next following the six month anniversary of his
Resignation Date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Cooperation and Advisory Services.</U> During the period beginning on the Resignation
Date and continuing for twenty-four months thereafter, Mr.&nbsp;Kalman shall provide such
cooperation and advisory services as the Company may request with respect to matters in which
he was involved during his employment with the Company and similar matters arising in the
ordinary course of business. Additionally, the Company or its affiliates may request Mr.
Kalman&#146;s assistance with respect to matters outside the ordinary course of business; provided
that any such request shall be subject to mutually acceptable terms and conditions.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Release of Claims</U>. In consideration of the foregoing, the adequacy of which is
hereby expressly acknowledged, Mr.&nbsp;Kalman hereby unconditionally and irrevocably releases
and forever discharges, to the fullest extent applicable law permits, the &#147;Releasees,&#148; as
defined below, from any and every action, cause of action, complaint, claim, demand,
administrative charge, legal right, compensation, obligation, damages (including</TD>
</TR>

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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>consequential, exemplary and punitive damages), liability, cost and/or expense (including
attorney&#146;s fees) that he has, may have or may be entitled to from or against the Releasees,
whether legal, equitable or administrative, in any forum or jurisdiction, whether known or
unknown, foreseen or unforeseen, matured or unmatured, accrued or not accrued which arises
directly or indirectly out of, or is based on or related in any way to Mr.&nbsp;Kalman&#146;s
employment with or termination of employment from the Company, its predecessors, successors
and assigns and past, present and future affiliates, subsidiaries, divisions and parent
corporations, including, without limitation, any such matter arising from the negligence,
gross negligence or willful misconduct of the Releasees, (together, the &#147;Released Claims&#148;);
provided, however, that this Release does not apply to any claims arising solely and
specifically 1.) under the Age Discrimination in Employment Act of 1967, as amended arising
after the date this Agreement is executed, 2.) to any claim for indemnification (including,
without limitation, under the Company&#146;s organizational documents or insurance policies)
arising in connection with an action instituted by a third party against the Company, its
affiliates or Mr.&nbsp;Kalman in his capacity as a former officer or director of the Company or
its affiliates, or 3.) to any claim arising from any breach or failure to perform this
Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The parties intend this Release to cover any and all such Released Claims, whether arising
under any employment contract (express or implied), policies, procedures or practices of any
of the Releasees, and/or by any acts or omissions of any of the Releasees&#146; agents or
employees or former agents or employees and/or whether arising under any state or federal
statute, including but not limited to Texas&#146; employment discrimination laws, all federal
discrimination laws, the Age Discrimination in Employment Act of 1967, as amended, the
Employee Retirement Income Security Act of 1974, as amended, all local laws and ordinances
and/or common law, without exception. As such, it is expressly acknowledged and agreed that
this Release is a general release, representing a full and complete disposition and
satisfaction of all of the Company&#146;s real or alleged legal obligations to Mr.&nbsp;Kalman with
the exceptions noted above. The term &#147;Releasees&#148; means the Company, its predecessors,
successors and assigns and past, present and future affiliates, subsidiaries, divisions and
parent corporations and all their respective past, present and future officers, directors,
shareholders, employee benefit plan administrators, employees and agents, individually and
in their respective capacities.</TD>
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Mr.&nbsp;Kalman expressly agrees that neither he nor any person acting on his behalf
will file or permit to be filed any action for legal or equitable relief against the
Releasees involving any matter related in any way to his employment with, or
resignation from employment with the Company, its predecessors, successors, assigns and
past, present and future affiliates, subsidiaries, divisions and parent corporations,
including the matters covered by the Released Claims. In the event that such an action
is filed, Mr.&nbsp;Kalman agrees that the Releasees are entitled to legal and equitable
remedies against him, including an award of attorney&#146;s fees. However, it is expressly
understood and agreed that the foregoing sentence shall not apply to any charge filed
by Mr.&nbsp;Kalman with the Equal Employment Opportunity Commission or any action filed by
Mr.&nbsp;Kalman that is narrowly limited to seeking a determination as to the validity of
this Agreement and enforcement thereof. Should Mr.&nbsp;Kalman file a charge with the Equal
Employment Opportunity Commission or should any governmental entity, agency, or
commission file a charge, action, complaint or lawsuit against any of the Releasees
based on any Released Claim, Mr.&nbsp;Kalman agrees not to seek or accept any resulting
relief whatsoever.</TD>
</TR>

</TABLE>
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<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Undertakings By Mr.&nbsp;Kalman</U>. In consideration of the foregoing, the adequacy of which
is expressly acknowledged and agreed, unless otherwise mutually agreed between Mr.&nbsp;Kalman and
the Company, Mr.&nbsp;Kalman shall immediately return to the Company any and all documents,
records, files, reports, memoranda, books, papers, plans, letters and any other data in his
possession regardless of the medium held or stored that relate in any way to the business of
the Company, and any credit cards, keys, access cards, calling cards, computer equipment and
software, telephone, facsimile or other equipment or property of the Company, and agrees that
during the period beginning on March&nbsp;1, 2008 and ending on February&nbsp;28, 2010:</TD>
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</TABLE>
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<DIV style="margin-top: 6pt">
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>He will not at any time disclose or use for his own benefit or purposes or for
the benefit or purposes of any party other than the Company, any trade secrets,
information, data or other confidential or proprietary information or data which may
have come to Mr.&nbsp;Kalman&#146;s knowledge during his employment with the Company, provided,
however that the foregoing shall not apply to information which is generally known to
the industry or the public other than as a result of Mr.&nbsp;Kalman&#146;s breach of this
undertaking. This undertaking shall apply without limit of time;</TD>
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</TABLE>
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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>He will refrain from performing any act, engaging in any conduct or course of
action or making or publishing any adverse or untrue or misleading statement which has
or may reasonably have the effect of demeaning the name or business reputation of the
Releasees or which adversely affects or may reasonably adversely affect the best
interests (economic or otherwise) of the Releasees;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>He will refrain from the solicitation, procurement, interference with or
attempt to entice away from the Company and/or its affiliates of (i)&nbsp;any person or
entity who is a material customer, supplier, agent or distributor of the Company and/or
its affiliates with whom Mr.&nbsp;Kalman or any employee subordinate to Mr.&nbsp;Kalman had
contact on behalf of the Company and/or its affiliates, or (ii)&nbsp;any senior employee or
consultant employed by the Company and/or its affiliates on or after the Resignation
Date; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>He will refrain from any direct or indirect involvement without prior notice to
and consent of the Company, in any other enterprise which is competitive with any trade
or business carried on by McDermott International, Inc., its subsidiaries and
affiliates.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.&nbsp;Kalman expressly acknowledges and agrees that in the event that he institutes legal
action in violation of Paragraph&nbsp;4 above, or the Company determines that he has engaged in
conduct prohibited under any of subparagraphs (a)&nbsp;through (d)&nbsp;above, or he fails to provide
services reasonably requested by the Company pursuant to Paragraph&nbsp;3 above, any payments
otherwise due and owing pursuant to Paragraphs 1 above and under the SERP referenced in
Paragraph&nbsp;2 above shall be forfeited and all outstanding Awards shall be cancelled. Mr.
Kalman further expressly agrees that the Company shall have the right, in its sole
discretion, to suspend any such payment or benefit while an allegation that any of the
undertakings set forth in the foregoing subparagraphs (a)&nbsp;through (d)&nbsp;have been breached is
under investigation and agrees that this Agreement shall act as a complete bar to his
entitlement to any legal, equitable or administrative remedy based upon any forfeiture,
cancellation or suspension pursuant to this Paragraph&nbsp;5. Mr.&nbsp;Kalman further agrees that
if he institutes legal action in violation of Paragraph&nbsp;4 above or the Company determines
that he has engaged in conduct prohibited under any of
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">subparagraphs (a)&nbsp;through (d)&nbsp;above, he shall repay to the Company, within thirty (30)&nbsp;days
of receipt of written demand for repayment, 40% of the SERP benefits distributed to him
pursuant to Paragraph&nbsp;2 above and 100% of the value of any Award that became vested after
the Resignation Date pursuant to Paragraph&nbsp;1 above. In the event that legal action is taken
by the Company to enforce this repayment obligation, the Company shall be entitled to the
amount of the repayment obligation, interest on the unpaid amount, costs and attorney&#146;s
fees.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Confidentiality</U>. Mr.&nbsp;Kalman agrees to keep the terms of this Agreement, and the
settlement it embodies, strictly confidential, and further agrees not to disclose or permit
disclosure of any information concerning this Agreement to any other person, commercial or
non-profit newspaper, publication or broadcast, of any kind whatsoever, except: (a)&nbsp;as
required to do so by court order; (b)&nbsp;or as necessary for tax planning and/or preparation or
to respond to inquiries or audits by a federal, state or local taxing authority; (c)&nbsp;or for
purposes of providing such information to his personal legal counsel; (d)&nbsp;or as necessary for
the enforcement hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Miscellaneous Provisions</U>.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Failure on the part of the Company or Mr.&nbsp;Kalman at any time to insist on
strict compliance by the other party with any provisions of this Agreement shall not
constitute a waiver of either party&#146;s obligations in respect thereof, or of either
party&#146;s right hereunder to require strict compliance therewith in the future.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The obligations set forth in this Agreement are severable and divisible, and
the unenforceability of any clause or portion thereof shall not affect the
enforceability of the remainder of such clause or of any other obligation contained
herein.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Entire Agreement</U>. Mr.&nbsp;Kalman and the Company agree and acknowledge that this
Agreement contains and comprises the entire agreement and understanding between the parties,
that no other representation, promise, covenant or agreement of any kind whatsoever has been
made to cause any party to execute this Agreement, and that all agreements and understandings
between the parties are embodied and expressed in these agreements. The parties also agree
that the terms of this Agreement shall not be amendedr or changed except in writing and signed by Mr.&nbsp;Kalman and a duly authorized agent of</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"> the
Company. The parties to this Agreement further agree that this Agreement shall be binding
on and inure to the benefit of Mr.&nbsp;Kalman, the Company and the Releasees as defined in this
Agreement. Any other agreements or understandings between the parties, whether written or
oral, are hereby null and void.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Timing and Consultation with Counsel</U>. Mr.&nbsp;Kalman acknowledges that he has been given
a reasonable period of time within which to consider this Agreement and has been advised to
discuss the terms of this Agreement with legal counsel. Mr.&nbsp;Kalman acknowledges that this
Agreement was offered to him on February&nbsp;7, 2008, that he was advised that (i)&nbsp;it could be
executed at any time prior to February&nbsp;29, 2008, and (ii)&nbsp;if accepted, the Agreement could be
revoked, in writing, for up to seven (7)&nbsp;days following the date of such acceptance. Based
upon his review, Mr.&nbsp;Kalman acknowledges that he fully and completely understands and accepts
the terms of this Agreement, including the Release in Paragraph&nbsp;4, and enters into it freely,
voluntarily and of his own free will.</TD>
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<DIV style="margin-top: 6pt">
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<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>10<B>. </B><U>Applicable Law</U>. This Agreement shall be interpreted and construed in accordance
with the laws of the State of Texas.</TD>
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</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">I HAVE READ THE FOREGOING SEPARATION AGREEMENT, FULLY UNDERSTAND IT AND HAVE VOLUNTARILY
EXECUTED IT ON THE DATE WRITTEN BELOW, SIGNIFYING THEREBY MY ASSENT TO, AND WILLINGNESS TO
BE BOUND BY, ITS TERMS:
</DIV>
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    <TD width="2%">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Date:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">February&nbsp;8, 2008
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Francis S. Kalman
</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Francis S. Kalman</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before me, a Notary Public in and for Harris County, Texas, personally appeared the
above-named Francis S. Kalman, who acknowledged that he did sign the foregoing instrument, and that
the same is his free act and deed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal at Harris County, Texas,
this 8<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of February, 2008.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NOTARY PUBLIC</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->- 7 -<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="54%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>McDERMOTT INCORPORATED</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ John T. Nesser III</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;John T. Nesser III</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD align="left" valign="top"><DIV style="margin-left:15px; text-indent:-0px">Executive Vice President, Chief Administrative and Legal Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before me, a Notary Public in and for Harris County, Texas, personally appeared the
above-named McDermott Incorporated through John T. Nesser, III, its Executive Vice President, Chief
Administrative and Legal Officer, who acknowledged that he did sign the foregoing instrument for
and on behalf of McDermott Incorporated, and that the same is the free act and deed of McDermott
Incorporated and the free act and deed of him as its agent.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN TESTIMONY WHEREOF, I have hereunto set my hand and official seal at Harris County, Texas,
this 8<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of February, 2008.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="56%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">NOTARY PUBLIC</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->- 8 -<!-- /Folio -->
</DIV>




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