Exhibit 10.1

EXECUTION VERSION

AMENDMENT NO. 3 TO RESTRUCTURING SUPPORT AGREEMENT

This Amendment No. 3 (this “Amendment No. 3”), dated as of November 2, 2016, is
made by the HERO Entities and each of the Ad Hoc Group Members that is a party
hereto. Capitalized terms used and not otherwise defined herein have the
meanings set forth in the Agreement (as defined below) or the Plan (as defined
below), as applicable.

WHEREAS, the HERO Entities and the Ad Hoc Group Members are parties to that
certain Restructuring Support Agreement, dated May 26, 2016, as amended by the
Amendment to the Restructuring Support Agreement, dated July 8, 2016 and the
Amendment No. 2 to Restructuring Support Agreement, dated August 12, 2016 (as
may be further amended, modified or supplemented from time to time, the
“Agreement”); and

WHEREAS, Section 26 of the Agreement provides, among other things, that the
Agreement may be amended with the written consent of (i) each of the HERO
Entities and (ii) the Requisite Consenting Lenders; provided, that
notwithstanding the foregoing, any modifications, amendments, or supplements or
waivers to the Agreement, including any exhibits thereto (including any
provision in the Term Sheet), to (a) the sub-provision entitled “First Lien
Claims” in the provision entitled “Treatment of Claims and Interests” in the
Term Sheet, (b) the sub-provisions entitled “HERO Common Stock” in the
provisions entitled “Treatment of Claims and Interests” in the Term Sheet, (c)
any documentation with regard to (a) through (b) above may not be made without
the prior written consent of the HERO Entities and each member of the Ad Hoc
Group; and

WHEREAS, on September 6, 2016, the Debtors, the Ad Hoc Group and the official
committee of equity security holders (the “Equity Committee”) participated in a
mediation (the “Mediation”) held pursuant to an order of the Bankruptcy Court;
and

WHEREAS, in connection with the Mediation (as defined in the Plan (defined
herein)), the Debtors and the Ad Hoc Group reached a settlement (the “Mediation
Settlement”) with respect to any and all claims and causes of action that may be
asserted by the Debtors or on behalf of the Debtors’ estates against any holder
of First Lien Claims pursuant to which the amount of the Rejection Lender Wind
Down Claim will be reduced by $32.5 million (the “First Lien Claim Reduction
Amount”), and subject to and upon the occurrence of the Effective Date, the
First Lien Claims will be subordinated in priority of payment to the HERO Common
Stock to the extent, and only to the extent, necessary to provide for payment of
$15 million in cash to holders of HERO Common Stock on the Effective Date or as
soon as reasonably practicable thereafter upon the Wind Down Entity Board
determining that through the proceeds of asset sales or the Claims
reconciliation process, sufficient cash is available to fund the Wind Down
Entity and make such distribution (the “Rejection Shareholder Cash
Distribution”); and

WHEREAS, the hearing to consider confirmation of the Debtors’ Modified Joint
Prepackaged Chapter 11 Plan (Incorporating Mediation Settlement) filed in the
Chapter 11 Cases on October 18, 2016 [Dkt. No. 436] (the “Plan”)1 commenced on
September 22, 2016 and concluded September 27, 2016 (the “Confirmation
Hearing”); and

 

1  References to the “Plan” in the Restructuring Support Agreement and the Term
Sheet shall refer to the “Plan” as defined in this Amendment No. 3.

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EXECUTION VERSION

 

WHEREAS, the parties desire to amend the Agreement to (a) incorporate the terms
of the Mediation Settlement, (b) extend the deadlines for (i) entry of the
Disclosure Statement Order and Confirmation Order and (ii) the consummation of
the Plan and (c) incorporate certain other changes to the Plan that were agreed
to during the Confirmation Hearing.

NOW, THEREFORE, in consideration of the covenants and agreements contained
herein and in the Agreement and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged-the parties hereby
agree as follows:

 

  1. Section 6(i) of the Agreement is hereby deleted in its entirety and
replaced with the following: “obtain approval by the Bankruptcy Court of the
Disclosure Statement and the Solicitation Procedures and entry of the
Confirmation Order on or before November 11, 2016, which Confirmation Order
shall be a Final Order (as defined in the Term Sheet) on or before November 25,
2016.”

 

  2. Section 6(j) of the Agreement is hereby amended such that the reference to
“October 14, 2016” therein is changed to “December 2, 2016.”

 

  3. The second paragraph of the “First Lien Claims” subsection of the
“Treatment of Claims and Interests” section of the Term Sheet is hereby amended
such that the reference to “$579 million” therein is changed to “$546.5 million
(after taking into account the First Lien Claim Reduction Amount pursuant to the
Mediation Settlement)”.

 

  4. The second paragraph of the “HERO Common Stock” subsection of the
“Treatment of Claims and Interests” section of the Term Sheet is hereby deleted
in its entirety and replaced with the following:

“If the class of HERO Common Stock votes to reject the Plan, each holder of HERO
Common Stock shall receive its pro rata share (calculated based on the total
number of shares of HERO Common Stock) of (i) the Rejection Shareholder Cash
Distribution and (ii) 100% of the Rejection Wind Down Entity Interests. For the
avoidance of doubt, from and after the Effective Date, any distribution on
account of the Rejection Shareholder Cash Distribution shall be made prior to
any distribution on account of the Rejection Lender Wind Down Claim. “Wind Down
Entity Interests” shall refer to whichever of the Acceptance Wind Down Entity
Interests or the Rejection Wind Down Entity Interests arise based on the
acceptance or rejection of the Plan by the class of HERO Common Stock.”

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EXECUTION VERSION

 

  5. The section entitled “Disputed Claims Reserve” of the Term Sheet is hereby
amended such that the reference to “Administrative Claims” in romanette (i) is
deleted.

 

  6. The subsection entitled “Releases” of the “Release, Exculpation and Related
Provisions” section of the Term Sheet is hereby deleted in its entirety and
replaced with the following:

“To the fullest extent permitted by applicable law, the Plan shall include a
full mutual release from liability in favor of (a) the Debtors, (b) the Wind
Down Entity, (c) the non-Debtor subsidiaries, (d) the Ad Hoc Group and its
members, (e) the First Lien Lenders that are parties to the Agreement, (f) each
First Lien Lender that is a party to the Agreement, (g) the First Lien Agent,
(h) the First Lien Lenders, (i) each holder of HERO Common Stock that is also a
First Lien Lender that is a party to the Agreement; and (j) with respect to each
of the foregoing entities in clauses (a) through (i), such entity’s respective
current and former officers, directors, professionals, advisors, accountants,
attorneys, investment bankers, consultants, employees, agents and other
representatives, from any claims and causes of action related to or in
connection with the HERO Entities and their subsidiaries, arising on or prior to
the Effective Date (collectively, the “Releases”); provided, however, that no
party shall be released from any claim or cause of action that was a result of
such party’s gross negligence or willful misconduct as determined by a Final
Order (as defined in the Plan).”

 

  7. The subsection entitled “9019 Settlement” of the “Release, Exculpation and
Related Provisions” section of the Term Sheet is hereby amended (a) such that
the reference to “the Debtors and their estates” is replaced with “the Debtors,
the Debtors’ estates and the Non-Debtor Subsidiaries” and (b) by the addition of
the following clause at the end of such subsection: “including, for the
avoidance of doubt, any claims and causes of action settled pursuant to the
Mediation Settlement and any objections, claims or causes of action asserted by
the Equity Committee in its objection to the First Lien Claims or its motion
seeking standing to prosecute certain claims and causes of action against the
First Lien Lenders.”

 

  8. Point 6 of the subsection entitled “Milestones” of the Term Sheet (in
reference to entry of the Disclosure Statement Order and Confirmation Order) is
hereby amended such that the reference to “September 30, 2016” therein is
changed to “November 11, 2016.”

 

  9. Point 7 of the subsection entitled “Milestones” of the Term Sheet (in
reference to consummation of the Plan) is hereby amended such that the reference
to “October 14, 2016” therein is changed to “December 2, 2016.”

 

  10.

Point 6 of the subsection entitled “Wind Down Entity” of the “Other Terms and
Conditions” section of the Term Sheet is hereby amended by the addition of the
following proviso at the end of such bullet point: “provided, that upon payment
in full of the Lender Wind Down Claim, the two members of the Wind Down Entity
Board

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EXECUTION VERSION

 

  designated by the Requisite Consenting Lenders shall be replaced by two
members designated by the Equity Committee, provided, that the Equity Committee
has designated such members by 11:59 p.m. (ET) on October 11, 2016.”

 

  11. The second paragraph of Point 9 of the subsection entitled “Wind Down
Entity” of the “Other Terms and Conditions” section of the Term Sheet is hereby
deleted in its entirety and replaced with the following:

“If the class of HERO Common Stock votes to reject the Plan, the Wind Down
Entity shall make distributions (i) first, on account of the Rejection
Shareholder Cash Distribution, (ii) after the Rejection Shareholder Cash
Distribution has been funded in full, on account of the Rejection Lender Wind
Down Claim and (iii) after payment in full of the Rejection Lender Wind Down
Claim, to holders of Wind Down Entity Interests on a pro rata basis.”

 

  12. The subsection entitled “Severance and Incentive Plan” of the “Other Terms
and Conditions” section of the Term Sheet is hereby deleted in its entirety and
replaced with the following:

“The Plan shall provide that upon the Effective Date, the existing employment
agreements for each of the Executives shall be rejected, and each of the
Executives shall be granted, in accordance with Bankruptcy Code section
502(b)(7), an Allowed General Unsecured Claim in an amount equal to the amount
of the base salary (as of May 26, 2016) and benefits provided by their
respective employment agreements, without acceleration, for one year following
the Petition Date, plus any unpaid base salary, unpaid benefits and unpaid
expense reimbursements due under such employment agreements, without
acceleration, as of the Petition Date; provided, however, that (i) the aggregate
amount of the portions of all such Allowed General Unsecured Claims of the
Executives related to base salary (excluding unpaid base salary) shall not
exceed $2.09 million, and (ii) the amount of the portion of each such Allowed
General Unsecured Claim of an Executive related to benefits (excluding unpaid
benefits) shall not exceed $24,000.

Any employment agreement or similar benefits agreement between any executive,
contractor or other employee that is not an Executive and any Debtor shall,
unless otherwise agreed among the Debtors and the Requisite Consenting Lenders,
be rejected immediately prior to the Effective Date of the Plan unless otherwise
agreed among such executive, contractor or other employee and the Requisite
Consenting Lenders.”

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EXECUTION VERSION

 

The Wind Down Entity Agreement shall provide that:

“On the Effective Date, subject to the applicable Executive having continued
their employment with the Debtors until the Effective Date, or such Executive
having been terminated without Cause (as defined in such Executive’s employment
agreement) prior to the Effective Date, the following terms of compensation
shall apply with respect to services to be provided by such Executive to the
Wind Down Entity:

(i) upon the latest of (x) the Effective Date, (y) December 31, 2016 and (z)
entry into a definitive agreement for the sale of the Hercules Triumph or the
Hercules Resilience (the “Payment Trigger Date”), each Executive shall be
entitled to payment of an amount equal to such Executive’s annual bonus in
respect of 2015 that was paid to such Executive in 2016 (the “Bonus Amount”);
provided, however, that the Bonus Amounts paid to the Executives shall not
exceed $1.51 million in the aggregate; and

(ii) so long as an Executive is employed by the Wind Down Entity after the
Effective Date, for any period that such Executive is so employed during the
period from the Effective Date through December 31, 2016, such Executive shall
be compensated for his continued employment at a rate of 150% of base salary as
of the Petition Date (with 125% of his base salary paid current and 25% deferred
until the Payment Trigger Date (the “Deferral Compensation”)) and for any period
of employment by the Wind Down Entity from and after December 31, 2016 on such
terms as may be agreed to by the Wind Down Entity and the Executive.

In the event an Executive resigns without “Executive Cause” (which shall mean
the failure of the Wind Down Entity to pay such Executive his compensation when
due in accordance with the terms hereof or if the Executive is asked to perform
any services that are immoral, illegal or unethical) prior to the Payment
Trigger Date or is terminated for Cause prior to the Payment Trigger Date, the
Executive shall forfeit his rights to the Bonus Amount and the Deferral
Compensation, but shall retain his rights to receive and retain payments
contemplated to be paid to such Executive under Article IV.N. of the Plan.”

 

  13. This Amendment No. 3 and the Agreement (including the Term Sheet that is
attached to, and fully incorporated in, the Agreement), together, contain the
complete agreement among the HERO Entities and the Ad Hoc Group Members and
supersede any prior understandings, agreements, letters of intent or
representations by or among such parties, written or oral, to the extent they
relate to the subject matter hereof. Except as specifically amended hereby, the
Agreement, as amended hereby, shall remain in full force and effect.

[Signature Pages Follow]

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IN WITNESS WHEREOF, this Amendment No. 3 has been duly executed to be effective
as of the date first written above.

 

HERCULES OFFSHORE, INC. By:  

/s/ Troy L. Carson

Name:   Troy L. Carson Title:   Senior Vice President & CFO CLIFFS DRILLING
COMPANY FDT LLC FDT HOLDINGS LLC HERCULES DRILLING COMPANY, LLC HERCULES
OFFSHORE LIFTBOAT COMPANY LLC HERO HOLDINGS, INC. SD DRILLING LLC THE OFFSHORE
DRILLING COMPANY THE ONSHORE DRILLING COMPANY TODCO AMERICAS INC. TODCO
INTERNATIONAL INC. HERCULES LIFTBOAT COMPANY, LLC HERCULES OFFSHORE SERVICES LLC
HERCULES OFFSHORE INTERNATIONAL, LLC By:  

/s/ Troy L. Carson

Name:   Troy L. Carson Title:   Vice President

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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DISCOVERY OFFSHORE (GIBRALTAR) LIMITED By:  

/s/ Troy L. Carson

Name:   Troy L. Carson Title:   Authorized Signatory By:  

/s/ Beau M. Thompson

Name:   Beau M. Thompson Title:   Authorized Signatory

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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HERCULES OFFSHORE (NIGERIA) LIMITED By:  

/s/ Troy L. Carson

Name:   Troy L. Carson Title:   Authorized Signatory

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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DISCOVERY NORTH SEA LTD. DISCOVERY OFFSHORE SERVICES LTD. HERCULES ASSET
MANAGEMENT LTD. HERCULES INTERNATIONAL DRILLING LTD. HERCULES INTERNATIONAL
HOLDINGS, LTD. HERCULES INTERNATIONAL MANAGEMENT COMPANY LTD. HERCULES
INTERNATIONAL OFFSHORE, LTD. HERCULES NORTH SEA, LTD. HERCULES OFFSHORE ARABIA,
LTD. HERCULES OFFSHORE HOLDINGS LTD. HERCULES OFFSHORE MIDDLE EAST LTD. HERCULES
OILFIELD SERVICES LTD. TODCO TRINIDAD LTD. By:  

/s/ Claus E. Feyling

Name:   Claus E. Feyling Title:   Director

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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HERCULES OFFSHORE LABUAN CORPORATION By:  

/s/ Claus E. Feyling

Name:   Claus E. Feyling Title:   Director

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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HERCULES BRITANNIA HOLDINGS LIMITED HERCULES BRITISH OFFSHORE LIMITED HERCULES
NORTH SEA DRILLER LIMITED HERCULES OFFSHORE UK LIMITED By:  

/s/ Claus E. Feyling

Name:   Claus E. Feyling Title:   Director

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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NOMURA CORPORATION RESEARCH AND ASSET MANAGEMENT INC., as investment manager on
behalf of certain of its clients By:  

/s/ Steven Kotsen

Name:   Steven Kotsen Title:   Portfolio Manager

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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TURAIS HERO LLC, as Lender By:  

/s/ Jeffrey Wade

Name:   Jeffrey Wade Title:   General Counsel

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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LUMINUS ENERGY PARTNERS MASTER FUND, LTD., as Lender By:  

/s/ Jeffrey Wade

Name:   Jeffrey Wade Title:   General Counsel

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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BLACKWELL PARTNERS LLC – SERIES A By: Bowery Investment Management, LLC, its
Manager By:  

/s/ Vladimir Jelisavcic

Name:   Vladimir Jelisavcic Title:   Manager BOWERY OPPORTUNITY FUND, L.P. By:
Bowery Opportunity Management, LLC, its General Partner By:  

/s/ Vladimir Jelisavcic

Name:   Vladimir Jelisavcic Title:   Manager BOWERY OPPORTUNITY FUND, Ltd. By:  

/s/ Vladimir Jelisavcic

Name:   Vladimir Jelisavcic Title:   Director P BOWERY, LTD By: Bowery
Investment Management, LLC, its investment manager By:  

/s/ Vladimir Jelisavcic

Name:   Vladimir Jelisavcic Title:   Manager

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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WESTERN ASSET MANAGEMENT COMPANY, as Investment Manager and Agent on behalf of
Certain of its Clients By:  

/s/ Adam Wright

Name:   Adam Wright Title:   Manager, U.S. Legal Affairs

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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QUANTUM PARTNERS LP, as holder of HERO Equity Interests By: QP GP LLC, its
General Partner By:  

/s/ Thomas O’ Grady

Name:   Thomas O’ Grady Title:   Attorney-in-Fact

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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QPB HOLDINGS LTD., as Lender By:  

/s/ Thomas O’ Grady

Name:   Thomas O’ Grady Title:   Attorney-in-Fact

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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SOUTH DAKOTA RETIREMENT SYSTEM By:  

/s/ Matthew L. Clark

Name:   Matthew L. Clark Title:   State Investment Officer on behalf of the
South Dakota Retirement System

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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CERTAIN FUNDS AND ACCOUNTS EACH ACTING as Lender, severally and not jointly T.
ROWE PRICE ASSOCIATES, INC., as investment advisor or subadviser, as applicable
By:  

/s/ Rodney M. Rayburn

Name:   Rodney M. Rayburn Title:   Vice President

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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BANK OF AMERICA, N.A., as a Lender By:  

/s/ Seth Denson

Name:   Seth Denson Title:   Director

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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THIRD AVENUE TRUST, on behalf of the THIRD AVENUE FOCUSED CREDIT FUND By: THIRD
AVENUE MANAGEMENT LLC, its investment advisor By:  

/s/ W. James Hall

Name:   W. James Hall Title:   General Counsel

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]

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JEFFERIES LEVERAGED CREDIT PRODUCTS LLC, as Lender By:  

/s/ William P. McLoughlin

Name:   William P. McLoughlin Title:   Senior Vice President and Associate
General Counsel

 

[SIGNATURE PAGE TO AMENDMENT NO. 3 TO THE AGREEMENT]