Document:

EX-4.3

 Exhibit 4.3 

Execution Version 
  

 
  

ROWAN COMPANIES, INC. 

as the Company 
 ROWAN
COMPANIES PLC 
 as Guarantor 

and 
 U.S. BANK NATIONAL
ASSOCIATION 
 as Trustee 

SEVENTH SUPPLEMENTAL INDENTURE 

Dated as of January 15, 2014 

to 
 INDENTURE 

Dated as of July 21, 2009 

5.85% SENIOR NOTES DUE 2044 
  

 
  

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
	 ARTICLE ONE Relation to Indenture; Definitions
	  	 	1	  
		
	 SECTION 1.01. Relation to Indenture
	  	 	1	  
	 SECTION 1.02. Definitions
	  	 	1	  
	 SECTION 1.03. General References
	  	 	1	  
		
	 ARTICLE TWO The Series of Securities
	  	 	2	  
		
	 SECTION 2.01. The Form and Title of the Securities
	  	 	2	  
	 SECTION 2.02. Amount
	  	 	2	  
	 SECTION 2.03. Stated Maturity
	  	 	2	  
	 SECTION 2.04. Interest and Interest Rates
	  	 	2	  
	 SECTION 2.05. Place of Payment
	  	 	2	  
	 SECTION 2.06. Optional Redemption
	  	 	2	  
	 SECTION 2.07. Defeasance and Discharge; Covenant Defeasance
	  	 	3	  
	 SECTION 2.08. Global Securities
	  	 	3	  
	 SECTION 2.09. Rowan UK Guarantee
	  	 	3	  
		
	 ARTICLE THREE Amendments to Original Indenture
	  	 	3	  
		
	 SECTION 3.01. Defined Terms
	  	 	3	  
	 SECTION 3.02. Additional Event of Default
	  	 	7	  
	 SECTION 3.03. Release of Securities Guarantee
	  	 	7	  
		
	 ARTICLE FOUR Additional Covenants
	  	 	8	  
		
	 SECTION 4.01. Limitation on Liens
	  	 	8	  
	 SECTION 4.02. Limitation on Sale and Leaseback Transactions
	  	 	8	  
		
	 ARTICLE FIVE Miscellaneous
	  	 	9	  
		
	 SECTION 5.01. Certain Trustee Matters
	  	 	9	  
	 SECTION 5.02. Continued Effect
	  	 	9	  
	 SECTION 5.03. Governing Law
	  	 	9	  
	 SECTION 5.04. Counterparts
	  	 	9	  

  

			
	EXHIBITS	  	
	Exhibit A:	  	Form of Note

 Seventh Supplemental Indenture 

 SEVENTH SUPPLEMENTAL INDENTURE, dated as of January 15, 2014 (this “Supplemental
Indenture”), by and among ROWAN COMPANIES, INC., a corporation duly organized and existing under the laws of the State of Delaware (the “Company”), ROWAN COMPANIES PLC, a public limited company incorporated under the
laws of England and Wales (“Rowan UK”), and U.S. BANK NATIONAL ASSOCIATION, a nationally chartered banking association, as trustee under the Indenture referred to below (in such capacity, the “Trustee”). 

RECITALS OF THE COMPANY 

WHEREAS, the Company and the Trustee have heretofore entered into an Indenture dated as of July 21, 2009 (the “Original
Indenture”) (the Original Indenture, as supplemented from time to time, including without limitation pursuant to this Supplemental Indenture, being referred to herein as the “Indenture”); and 

WHEREAS, under the Original Indenture, a new series of Securities may at any time be established by an indenture supplemental to the Original
Indenture; and 
 WHEREAS, the Company proposes to create under the Indenture a new series of Securities; and 

WHEREAS, Rowan UK proposes to fully and unconditionally guarantee such new series of Securities; and 

NOW, THEREFORE, in consideration of the premises, agreements and obligations set forth herein and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree, for the equal and proportionate benefit of all Holders of the Notes (as defined below), as follows: 

ARTICLE ONE 

RELATION TO INDENTURE; DEFINITIONS 

SECTION 1.01. Relation to Indenture. 

With respect to the Notes, this Supplemental Indenture constitutes an integral part of the Indenture. 

SECTION 1.02. Definitions. 

For all purposes of this Supplemental Indenture, capitalized terms used herein and not otherwise defined herein shall have the meanings
assigned thereto in the Original Indenture. 
 SECTION 1.03. General References. 

Unless otherwise specified or unless the context otherwise requires, (i) all references in this Supplemental Indenture to Articles
and Sections refer to the corresponding Articles and Sections of this Supplemental Indenture and (ii) the terms “herein”, “hereof”, “hereunder” and any other word of similar import refer to
this Supplemental Indenture. 

  
 Seventh
Supplemental Indenture 

 ARTICLE TWO 

THE SERIES OF SECURITIES 

SECTION 2.01. The Form and Title of the Securities. 

There is hereby established a new series of Securities to be issued under the Indenture and to be designated as the Company’s 5.85% Senior
Notes due 2044 (the “Notes”). The Notes shall be substantially in the form attached as Exhibit A hereto, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted
by the Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as the Company may deem appropriate or as may be required or appropriate to comply with any laws or with any rules
made pursuant thereto or with the rules of any securities exchange or automated quotation system on which the Notes may be listed or traded, or to conform to general usage, or as may, consistently with the Indenture, be determined by the officers
executing such Notes, as evidenced by their execution thereof. 
 The Notes shall be executed, authenticated and delivered in accordance
with the provisions of, and shall in all respects be subject to, the terms, conditions and covenants of the Original Indenture as supplemented by this Supplemental Indenture (including the form of Note attached as Exhibit A hereto (the
terms of which are incorporated in and made a part of this Supplemental Indenture for all intents and purposes)). 

SECTION 2.02. Amount. 

The aggregate principal amount of the Notes that may be authenticated and delivered pursuant hereto is unlimited. The Trustee shall initially
authenticate and deliver Notes for original issue in an initial aggregate principal amount of up to $400,000,000, upon delivery to the Trustee of a Company Order for the authentication and delivery of such Notes. The aggregate principal amount of
the Notes to be issued hereunder may be increased at any time hereafter and the series may be reopened for issuances of Additional Notes, upon Company Order, without the consent of any Holder and without any further supplement or amendment to the
Original Indenture or this Supplemental Indenture. The Notes issued on the date hereof and any such Additional Notes that may be issued hereafter shall be part of the same series of Securities for all purposes under the Indenture. 

SECTION 2.03. Stated Maturity. 

The Notes may be issued on any Business Day on or after January 15, 2014, and the Stated Maturity of the Notes shall be January 15,
2044. 
 SECTION 2.04. Interest and Interest Rates. 

The rate or rates at which the Notes shall bear interest, the date or dates from which such interest shall accrue, the Interest Payment Dates
on which any such interest shall be payable and the Regular Record Date for any interest payable on any Interest Payment Date, in each case, shall be as set forth in the form of Note attached as Exhibit A hereto. 

SECTION 2.05. Place of Payment. 

As long as any Notes are Outstanding, the Company shall maintain an office or agency in the United States where Notes may be presented for
payment. Such office or agency shall initially be the office or agency of the Trustee in Houston, Texas. 
 SECTION 2.06.
Optional Redemption. 
 At its option, the Company may redeem the Notes, in whole or in part, in principal amounts of
$2,000 or integral multiples of $1,000 in excess thereof, at any time or from time to time, at the applicable Redemption Price determined as set forth in the form of Note attached hereto as Exhibit A, in accordance with the terms set forth in
the Notes and in accordance with Article Eleven of the Original Indenture. 

  
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Supplemental Indenture 

  
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 SECTION 2.07. Defeasance and Discharge; Covenant Defeasance.

 Article Thirteen of the Original Indenture (as amended and supplemented by this Supplemental Indenture) shall apply to the Notes.
Furthermore, the additional Event of Default specified in Section 3.02 of this Supplemental Indenture, each of the covenants set forth in Article Four of this Supplemental Indenture, and the Events of Default specified in Sections 5.1(c)
and 5.1(d) of the Original Indenture, shall, in each case, constitute “Additional Defeasible Provisions” (as such term is used in the Original Indenture). 

SECTION 2.08. Global Securities. 

The Notes shall initially be issuable in whole or in part in the form of one or more Global Securities. Such Global Securities (i) shall
be deposited with, or on behalf of, the Depository Trust Company, New York, New York, which shall act as Depositary with respect to the Notes, (ii) shall bear the legends applicable to Global Securities set forth in Sections 2.2 and 2.4 of
the Original Indenture, (iii) may be exchanged in whole or in part for Securities in definitive form upon the terms and subject to the conditions provided in Section 3.5 of the Original Indenture and in this Supplemental Indenture and
(iv) shall otherwise be subject to the applicable provisions of the Indenture. 
 SECTION 2.09. Rowan UK
Guarantee. 
 Article Fourteen of the Original Indenture (as amended and supplemented by this Supplemental Indenture,
including without limitation Section 3.03 hereof) shall apply to the Notes. For the purposes of this Supplemental Indenture and the Notes (including without limitation the provisions of the Original Indenture to the extent applicable thereto),
the term “Guarantor” shall mean Rowan UK. Rowan UK hereby agrees to be bound by a Securities Guarantee with respect to the Notes and that Rowan UK shall be a Guarantor of the Notes in accordance with Article Fourteen of the Indenture;
provided, however, that the Securities Guarantee granted hereby shall not apply to any obligations under any series of Securities other than the Notes. Rowan UK hereby agrees that its Securities Guarantee of the Notes will remain in
full force and effect notwithstanding any failure to endorse on each Note a notation of such Securities Guarantee. 
 ARTICLE
THREE 
 AMENDMENTS TO ORIGINAL INDENTURE 

With respect to the Notes, the Original Indenture is hereby amended as set forth below in this Article Three; provided,
however, that each such amendment shall apply only to the Notes and not to any other series of Securities issued under the Indenture. 

SECTION 3.01. Defined Terms. 

Subject to the limitations set forth in the preamble to Article Three of this Supplemental Indenture, Section 1.1 of the Original
Indenture is hereby amended by inserting or restating, as the case may be, each of the following defined terms in its appropriate alphabetical position: 

“Additional Defeasible Provisions” means the provisions of Sections 5.1(c), 5.1(d), 5.1(h), 10.6 and 10.7 of the
Indenture. 
 “Additional Notes” means an unlimited maximum aggregate principal amount of Notes (other than the
Notes issued on the date hereof) issued under the Indenture pursuant to Section 2.02 of this Supplemental Indenture. 

  
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Supplemental Indenture 

  
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 “Attributable Indebtedness,” when used with respect to any Sale and
Leaseback Transaction, means, as at the time of determination, the present value (discounted at the rate set forth or implicit in the terms of the lease included in such transaction) of the rental payments during the remaining term of the lease
included in such Sale and Leaseback Transaction (other than amounts required to be paid on account of taxes, maintenance, repairs, insurance, assessments, utilities, operating and labor costs and other items that do not constitute payments for
property rights), including any period for which such lease has been extended. In the case of any lease that is terminable by the lessee upon the payment of a penalty, such net amount shall be the lesser of the net amount determined assuming
termination upon the first date such lease may be terminated (in which case the net amount shall also include the amount of the penalty, but no rent shall be considered as required to be paid under such lease subsequent to the first date upon which
it may be so terminated) or the net amount determined assuming no such termination. 
 “Capital Lease Obligation”
means, at the time any determination is to be made, the amount of the liability in respect of a capital lease that would at that time be required to be capitalized on a balance sheet in accordance with GAAP, and the stated maturity thereof shall be
the date of the last payment of rent or any other amount due under such lease prior to the first date upon which such lease may be prepaid by the lessee without payment of a penalty. 

“Capital Stock” means: 

(1) in the case of a corporation, corporate stock; 

(2) in the case of an association or business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock; 
 (3) in the case of a partnership or limited liability company,
partnership interests (whether general or limited) or membership interests; and 
 (4) any other interest or participation
that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person. 

“Consolidated Net Tangible Assets” of any Person means the total amount of assets (after deducting applicable
reserves and other properly deductible items) of such Person and its consolidated Subsidiaries minus all current liabilities (excluding liabilities that are extendable or renewable at the option of such Person or any of its consolidated
Subsidiaries to a date more than 12 months after the date of calculation and excluding current maturities of long-term indebtedness) and all goodwill, trade names, trademarks, patents, unamortized indebtedness discount and expense and other like
intangible assets. Consolidated Net Tangible Assets of any Person shall be based on the most recently available consolidated quarterly balance sheet of such Person, and shall be calculated in accordance with GAAP. 

“Funded Indebtedness” means all Indebtedness that matures on or is renewable to a date more than one year after the
date the Indebtedness is incurred. 
 “GAAP” means generally accepted accounting principles in the United States,
which are in effect from time to time. All computations based on GAAP contained in this Indenture will be computed in conformity with GAAP. At any time after the Issue Date, the Company may elect to apply International Financial Reporting Standards
(“IFRS”) accounting principles in lieu of GAAP and, upon any such election, references herein to GAAP shall thereafter be construed to mean IFRS; provided that any such election, once made, shall be irrevocable; provided,
further, that any calculation or determination in the Indenture that requires the application of GAAP for periods that include fiscal quarters ended prior to the Company’s election to apply IFRS shall remain as previously calculated or
determined in accordance with GAAP. The Company shall give notice of any such election made in accordance with this definition to the Trustee. 

  
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Supplemental Indenture  

  
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 “Indebtedness” of any Person means: 

(1) all indebtedness of such Person for borrowed money (whether full or limited recourse); 

(2) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments; 

(3) all obligations of such Person under letters of credit or other similar instruments, other than standby letters of credit,
performance bonds and other obligations issued in the ordinary course of business, to the extent not drawn or, to the extent drawn, if such drawing is reimbursed not later than the third business day following demand for reimbursement; 

(4) all obligations of such Person to pay the deferred and unpaid purchase price of property or services, except trade payables
and accrued expenses incurred in the ordinary course of business; 
 (5) all Capital Lease Obligations of such Person; 

(6) all Indebtedness of others secured by a Lien on any asset of such Person; provided that if the obligations so secured have
not been assumed in full or are not otherwise fully such Person’s legal liability, then such obligations may be reduced to the value of the asset or the liability of such Person; and 

(7) all Indebtedness of others (other than endorsements in the ordinary course of business) guaranteed by such Person to the
extent of such guarantee. 
 “Issue Date” means the first date on which any Notes are issued, authenticated and
delivered under the Indenture. 
 “Joint Venture” means any partnership, corporation or other entity in which up to
and including 50% of the partnership interests, outstanding Voting Stock or other equity interests is owned, directly or indirectly, by the Company and/or one or more Subsidiaries of the Company. 

“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any
kind in respect of such asset, regardless of whether filed, recorded or otherwise perfected under applicable law (including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to
sell or give a security interest in any asset and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction). 

“Notes” means a series of Securities designated as the Company’s 5.85% Senior Notes due 2044, issued pursuant to
this Indenture, as amended and supplemented by the Seventh Supplemental Indenture hereto dated as of January 15, 2014. 

“Permitted Liens” means: 

(1) Liens existing on the Issue Date; 

(2) Liens on any Person’s property or assets existing at the time the Company acquires such Person or its property or
assets, or at the time such Person becomes a Subsidiary of the Company; 
 (3) intercompany Liens in favor of the Company or
any Subsidiary of the Company; 

  
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Supplemental Indenture  

  
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 (4) Liens on assets either (a) securing all or part of the cost of
acquiring, constructing, improving, developing or repairing the assets or (b) securing Indebtedness incurred to finance the acquisition of the assets or the cost of constructing, improving, developing, expanding or repairing the assets and
commencing commercial operation of the assets if the applicable Indebtedness was incurred prior to, at the time of or within 24 months after the acquisition, or completion of construction, improvement, development, expansion or repair of the assets
or their commencing commercial operation; 
 (5) Liens in favor of governmental entities to secure (a) payments under
any contract or statute to secure progress or advance payments or (b) industrial development, pollution control or similar indebtedness; 

(6) governmental Liens under contracts for the sale of products or services; 

(7) Liens imposed by law, such as mechanic’s or workmen’s Liens; 

(8) Liens under workers’ compensation laws or similar legislation; 

(9) Liens in connection with legal proceedings or securing taxes or other assessments; 

(10) statutory or other Liens arising in the ordinary course of business of the Company or of any Subsidiary of the Company and
relating to amounts that are not yet delinquent or that the Company or any Subsidiary of the Company is contesting in good faith; 

(11) Liens on stock, partnership or other equity interests of the Company in any Joint Venture or of any Subsidiary of the
Company that owns an equity interest in a Joint Venture to secure Indebtedness contributed or advanced solely to that Joint Venture; 

(12) good faith deposits in connection with bids, tenders, contracts or leases; 

(13) deposits made in connection with maintaining self-insurance, to obtain the benefits of laws, regulations or arrangements
relating to unemployment insurance, old age pensions, social security or similar matters or to secure surety, appeal or customs bonds; and 

(14) any extensions, substitutions, renewals or replacements of the above-described Liens. 

“Principal Property” means any drilling rig, or integral portion thereof, owned or leased by the Company or any
Subsidiary of the Company and used for drilling offshore oil and gas wells, that, in the opinion of the Board of Directors of the Company, is of material importance to the business of the Company and its Subsidiaries considered as a whole;
provided, however that no such drilling rig, or portion thereof, shall be deemed of material importance if its net book value (after deducting accumulated depreciation) is less than 2% of the Consolidated Net Tangible Assets of the Company.

 “Sale and Leaseback Transaction” means any arrangement with any Person under which the Company or any Subsidiary
of the Company leases any Principal Property that the Company or that Subsidiary has or will sell or transfer to that Person; provided, however, that each of the following shall be deemed not to be a Sale and Leaseback Transaction: 

(1) temporary leases for a term of not more than five years; 

  
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Supplemental Indenture  

  
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 (2) intercompany leases between the Company and a Subsidiary or between two or
more Subsidiaries of the Company; and 
 (3) leases of a Principal Property executed by the time of or within 12 months after
the acquisition, the completion of construction, alteration, improvement or repair, or the commencement of commercial operation of such Principal Property. 

“Significant Subsidiary” means any Subsidiary of the Company that would be a “significant subsidiary” as
defined in Article 1, Rule 1-02(w) of Regulation S-X, promulgated pursuant to the Securities Act, as such Regulation is in effect on the Issue Date. 

“Subsidiary” means, with respect to any Person: 

(1) any corporation, association or other business entity of which more than 50% of the total voting power of the Voting Stock
thereof is at the time owned or controlled, directly or indirectly, by such Person; and 
 (2) any partnership (a) the
sole general partner or the managing general partner of which is such Person or an entity described in clause (1) and related to such Person or (b) the only general partners of which are such Person or one or more entities described in
clause (1) and related to such Person (or any combination thereof). 
 “Voting Stock” of any specified Person
as of any date means the Capital Stock of such Person that is at the time entitled to vote in the election of the Board of Directors (or similar governing body) of such Person. 

SECTION 3.02. Additional Event of Default. 

With respect to the Notes, the occurrence of any of the following events shall, in addition to the other events or
circumstances described as Events of Default in Section 5.1 of the Original Indenture, constitute an Event of Default: default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or
evidenced any Indebtedness of the Company or any of its Significant Subsidiaries (or the payment of which is guaranteed by the Company or any of its Significant Subsidiaries), whether such Indebtedness or guarantee now exists or is created after the
date of issuance of the Notes, if (a) that default (x) is caused by a failure to pay principal of or premium, if any, or interest on such Indebtedness prior to the expiration of the grace period provided in such Indebtedness on the date of
such default (a “Payment Default”), or (y) results in the acceleration of such Indebtedness prior to its express maturity, and (b) in each case described in clauses (x) or (y) above, the principal amount of any such
Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $35.0 million or more. 

SECTION 3.03. Release of Securities Guarantee. 

Subject to the limitations set forth in the preamble to Article Three of this Supplemental Indenture,
Article Fourteen of the Original Indenture is hereby amended by adding the following Section 14.4 thereto: 
 Section 14.4
Releases. 
 Rowan UK will be released and relieved of any obligations under its Securities Guarantee immediately upon
(a) Legal Defeasance in accordance with Article Thirteen of this Indenture or satisfaction and discharge of this Indenture in accordance with Article Four of this Indenture or (b) the merger of Rowan UK with and into the Company.

  
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Supplemental Indenture  

  
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 ARTICLE FOUR 

ADDITIONAL COVENANTS 

With respect to the Notes, Article Ten of the Original Indenture is hereby amended as set forth below in this Article Four;
provided, however, that each such amendment shall apply only to the Notes and not to any other series of Securities issued under the Indenture. 

SECTION 4.01. Limitation on Liens. 

Subject to the limitations set forth in the preamble to Article Four of this Supplemental Indenture, Article Ten of the Original
Indenture is hereby further amended by adding the following Section 10.6 thereto: 
 Section 10.6 Limitation on Liens. 

(a) The Company shall not, and shall not permit any of its Subsidiaries to, issue, assume or guarantee any Indebtedness for
borrowed money secured by any Lien upon any Principal Property without making effective provision whereby the Notes (together with, if the Company shall so determine, any other Indebtedness or other obligation of the Company or any Subsidiary) shall
be secured equally and ratably with (or, at the option of the Company, prior to) the Indebtedness so secured for so long as such Indebtedness is so secured. The foregoing restrictions will not, however, apply to Indebtedness secured by Permitted
Liens. 
 (b) Notwithstanding the immediately preceding paragraph (a), without securing the Notes, the Company or any
Subsidiary of the Company may issue, assume or guarantee Indebtedness that such paragraph (a) would otherwise restrict or prohibit, in a total principal amount that, when added to all of the other outstanding Indebtedness of the Company and its
Subsidiaries that such paragraph (a) would otherwise restrict or prohibit and the total amount of Attributable Indebtedness outstanding for Sale and Leaseback Transactions (other than any such Attributable Indebtedness for outstanding Sale and
Leaseback Transactions in connection with which the Company has voluntarily retired debt securities issued under this Indenture, Indebtedness of equal rank or Funded Indebtedness (in each case as described in clause (c) of Section 10.7)),
does not exceed 15% of the Consolidated Net Tangible Assets of the Company. 
 SECTION 4.02. Limitation on Sale and
Leaseback Transactions. 
 Subject to the limitations set forth in the preamble to Article Four of this Supplemental Indenture,
Article Ten of the Original Indenture is hereby further amended by adding the following Section 10.7 thereto: 
 Section 10.7
Limitation on Sale and Leaseback Transactions. 
 The Company shall not, and shall not permit any of its Subsidiaries
to, enter into a Sale and Leaseback Transaction, unless one of the following applies: 
 (a) the Company or such Subsidiary
of the Company could incur Indebtedness in a principal amount equal to the Attributable Indebtedness for that Sale and Leaseback Transaction and, without violating Section 10.6, could secure that Indebtedness by a Lien on the property to be
leased without equally or ratably securing the Notes; 

  
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Supplemental Indenture  

  
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 (b) after the issuance of the Notes and within the period beginning nine months
before the closing of the Sale and Leaseback Transaction and ending nine months after such closing, the Company or any of its Subsidiaries have expended for property used or to be used in the ordinary course of business an amount equal to all or a
portion of the net proceeds of the transaction, and the Company has elected to designate that amount as a credit against that transaction (with any amount not so designated to be applied as set forth in clause (c) below or as otherwise
permitted); or 
 (c) during the nine-month period after the effective date of the Sale and Leaseback Transaction, the
Company has applied to the voluntary defeasance or retirement of any debt securities under the Indenture, any Indebtedness of equal rank to the Notes or any Funded Indebtedness, an amount equal to the net proceeds of the sale or transfer of the
property leased in the Sale and Leaseback Transaction (or, if greater, the fair value of that property at the time of the Sale and Leaseback Transaction as determined by the Board of Directors of the Company) adjusted to reflect the remaining term
of the lease and any amount expended as set forth in the immediately preceding clause (b). 
 ARTICLE FIVE 

MISCELLANEOUS 

SECTION 5.01. Certain Trustee Matters. 

The recitals contained herein shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness.

 The Trustee makes no representations as to the validity or sufficiency of this Supplemental Indenture or the Notes or the proper
authorization or the due execution hereof or thereof by the Company. 
 Except as expressly set forth herein, nothing in this Supplemental
Indenture shall alter the duties, rights or obligations of the Trustee set forth in the Original Indenture. 
 The Trustee makes no
representation or warranty as to the validity or sufficiency of the information contained in the prospectus supplement related to the Notes, except such information which specifically pertains to the Trustee itself, or any information incorporated
therein by reference. 
 SECTION 5.02. Continued Effect. 

Except as expressly supplemented and amended by this Supplemental Indenture, the Original Indenture shall continue in full force and effect in
accordance with the provisions thereof, and the Original Indenture (as supplemented and amended by this Supplemental Indenture) is in all respects hereby ratified and confirmed. This Supplemental Indenture and all its provisions shall be deemed a
part of the Original Indenture in the manner and to the extent herein and therein provided. 
 SECTION 5.03. Governing
Law. 
 This Supplemental Indenture and the Notes shall be governed by and construed in accordance with the laws of the State of New
York. 
 SECTION 5.04. Counterparts. 

This instrument may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall
together constitute but one and the same instrument. 
 (Remainder of Page Intentionally Left Blank) 

  
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Supplemental Indenture  

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and delivered, all as of the date first written above. 
  

			
	THE COMPANY:
	
	ROWAN COMPANIES, INC.
		
	By:	 	/s/ J. Kevin Bartol
		 	J. Kevin Bartol
		 	 Executive Vice President, Chief Financial Officer and Treasurer

	
	GUARANTOR:
	
	ROWAN COMPANIES PLC
		
	By:	 	/s/ J. Kevin Bartol
		 	J. Kevin Bartol
		 	 Executive Vice President, Chief Financial Officer and
Treasurer

  

			
	The above signatory for Rowan Companies plc signed in the presence of:
	
	/s/ Karen Rios
	
	Print name of witness: Karen Rios
	Address:	 	2800 Post Oak Blvd.
		 	Suite 5450
		 	Houston, Texas 77056

  
 Signature page to
Seventh Supplemental Indenture  

 
			
	TRUSTEE:
	
	U.S. BANK NATIONAL ASSOCIATION
		
	By:	 	/s/ Shazia Flores
	Name:	 	Shazia Flores
	Title:	 	Authorized Officer

  
 Signature page to
Seventh Supplemental Indenture  

 EXHIBIT A 

[FORM OF FACE OF NOTE] 
 [If
a Global Security, insert—THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT BE TRANSFERRED TO, OR
REGISTERED OR EXCHANGED FOR SECURITIES REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY SECURITY
AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR IN LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED CIRCUMSTANCES.] 

[If a Global Security, insert—UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY,
A NEW YORK CORPORATION, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.] 
 ROWAN COMPANIES, INC.

 5.85% Senior Note due 2044 
  

			
	No.                     	  	U.S.$                    
	  
 CUSIP: 779382 AS9

 
 ISIN: US779382AS96
	  	

 ROWAN COMPANIES, INC., a Delaware corporation (herein called the “Company”, which term includes any
successor or resulting Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to                     , or
registered assigns, the principal sum of                     United States Dollars on January 15, 2044, and to pay interest thereon from
                    , or from the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually on
January 15 and July 15 in each year, commencing on                     , at the rate of 5.85% per annum, until the principal hereof is
paid or made available for payment and at the rate of 5.85% per annum on any overdue principal and premium and on any overdue installment of interest (to the extent that the payment of such interest shall be legally enforceable). The amount of
interest payable for any period shall be computed on the basis of twelve 30-day months and a 360-day year. The amount of interest payable for any partial period shall be computed on the basis of a 360-day year of twelve 30-day months and the days
elapsed in any partial month. In the event that any date on which interest is payable on this Security is not a Business Day, then a payment of the interest payable on such date will be made on the next succeeding day which is a Business Day (and
without any interest or other payment in respect of any such delay) with the same force and effect as if made on the date the payment was originally payable. A “Business Day” shall mean, when used with respect to any Place of
Payment, each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in that Place of Payment are authorized or obligated by law, executive order or regulation to close. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the
“Regular Record Date” for such interest, which shall be the January 1 or July 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or
duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice of 

  
 A-1 

 
which shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not inconsistent with the
requirements of any securities exchange or automated quotation system on which the Securities of this series may be listed or traded, and upon such notice as may be required by such exchange or automated quotation system, all as more fully provided
in such Indenture. 
 [If a Global Security, insert—Payment of the principal of (and premium, if any) and any such interest on
this Security will be made by transfer of immediately available funds to a bank account in the United States of America designated by the Holder in such coin or currency of the United States of America as at the time of payment is legal tender for
payment of public and private debts.] 
 [If a Definitive Security, insert—Payment of the principal of (and premium, if any) and
any such interest on this Security will be made at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, the City and State of New York, in such coin or currency of the United States of America as at the time
of payment is legal tender for payment of public and private debts or subject to any laws or regulations applicable thereto and to the right of the Company (as provided in the Indenture) to rescind the designation of any such Paying Agent, at the
offices of                     in the Borough of Manhattan, The City and State of New York, or at such other offices or agencies as the Company may
designate, by United States Dollar check drawn on, or transfer to a United States Dollar account maintained by the payee with, a bank in The City of New York (so long as the applicable Paying Agent has received proper transfer instructions in
writing at least 10 days prior to the payment date); provided, however, that payment of interest may be made at the option of the Company by United States Dollar check mailed to the addresses of the Persons entitled thereto as such addresses
shall appear in the Security Register or by transfer to a United States Dollar account maintained by the payee with a bank in The City of New York (so long as the applicable Paying Agent has received proper transfer instructions in writing by the
Record Date prior to the applicable Interest Payment Date).] 
 Reference is hereby made to the further provisions of this Security set
forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 A-2 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

Dated:                     ,
         
  

			
	ROWAN COMPANIES, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

 This is one of the Securities of the series designated 5.85% Senior Notes due 2044 referred to in the within-mentioned
Indenture. 
  

			
	U.S. BANK NATIONAL ASSOCIATION,
	as Trustee
		
	By:	 	  

		 	            Authorized Signatory

  
 A-3 

 [REVERSE OF NOTE] 

ROWAN COMPANIES, INC. 

5.85% Senior Note due 2044 

This Security is one of a duly authorized issue of senior securities of the Company (the “Securities”), issued and to be
issued in one or more series under an Indenture, dated as of July 21, 2009, between the Company and U.S. Bank National Association, a national banking association organized and existing under the laws of the United States of America, as Trustee
(the “Trustee,” which term includes any successor trustee under the Indenture), as amended and supplemented by the Seventh Supplemental Indenture thereto dated as of January 15, 2014 by and among the Company, Rowan UK and the
Trustee (such Indenture, as so amended and supplemented being referred to herein as the “Indenture”), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights,
limitations of rights, obligations, duties and immunities thereunder of the Company, any Guarantor, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. This
Security is one of the series designated on the face hereof. 
 This Security is the general, unsecured, senior obligation of the Company
and is guaranteed pursuant to a guarantee by each person named as a Guarantor in the Indenture. The Securities Guarantee of each such Guarantor is the general, unsecured, senior obligation of such Guarantor. 

This Security is redeemable, in whole or in part, at the Company’s option at any time and from time to time prior to maturity. The
redemption price for such redemption at any time on or after July 15, 2043 will be equal to 100% of the principal amount of this Security or portion hereof to be redeemed plus accrued and unpaid interest to but excluding the redemption date.
The redemption price for such redemption at any time prior to July 15, 2043 will be equal to the greater of (a) 100% of the principal amount of this Security or portion hereof to be redeemed, and (b) as determined by the Quotation
Agent (as defined below), the sum of the present values of the remaining scheduled payments of principal and interest in respect of this Security or portion hereof to be redeemed (not including any portion of those payments of interest accrued as of
the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined below) plus 30 basis points, plus, in each case, accrued and
unpaid interest to but excluding the date of redemption. 
 For purposes of determining any redemption price, the following definitions
shall apply: 
 “Adjusted Treasury Rate” means, with respect to any date of redemption, the rate per annum equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue (as defined below), assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price (as defined
below) for the date of redemption. The Adjusted Treasury Rate will be calculated on the third Business Day preceding the redemption date. 

“Comparable Treasury Issue” means the United States Treasury security selected by the applicable Quotation Agent as having a
maturity comparable to the remaining term of this Security that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the
remaining term of this Security. 
 “Comparable Treasury Price” means, with respect to any date of redemption, (a) the
average of the Reference Treasury Dealer Quotations (as defined below) for the date of redemption, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (b) if the Company obtains fewer than five such Reference
Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations. 
 “Quotation Agent” means the
Reference Treasury Dealer (as defined below) appointed by the Company. 
 “Reference Treasury Dealer” means
(a) Barclays Capital Inc., Citigroup Global Markets Inc., Goldman, Sachs & Co. and one primary U.S. government securities dealer in New York City (a “Primary Treasury Dealer”) designated by Wells Fargo Securities, LLC,
and their respective successors; provided, however, that if any of the foregoing shall cease to be a Primary Treasury Dealer, the Company shall substitute another Primary Treasury Dealer; and (b) any other Primary Treasury Dealer
selected by the Company. 

  
 A-4 

 “Reference Treasury Dealer Quotations” means, with respect to each Reference
Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Trustee by
such Reference Treasury Dealer at 5:00 p.m. (New York City time) on the third Business Day preceding that redemption date. 
 Unless the
Company defaults in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on this Security or the portions hereof called for redemption. 

In the event of redemption of this Security in part only, a new Security or Securities of this series and of like tenor for the unredeemed
portion hereof will be issued in the name of the Holder hereof upon the cancellation hereof. 
 The Indenture contains provisions for
defeasance at any time of (1) the entire indebtedness of this Security or (2) certain restrictive covenants and Events of Default with respect to this Security, in each case upon compliance with certain conditions set forth in the
Indenture. 
 If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture
permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and each Guarantor and the rights of the Holders of the Securities of each series to be affected under the
Indenture at any time by the Company and each Guarantor and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of each series to be affected (with each series voting as a separate
class). The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive
compliance by the Company and each Guarantor with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding
upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu hereof, regardless of whether notation of such consent or waiver is made upon this
Security. 
 No Holder of this Security shall have any right to institute any proceeding, judicial or otherwise, with respect to the
Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless (a) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of this
series, (b) the Holders of not less than 25% in principal amount of the Outstanding Securities of this series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee
hereunder, (c) such Holder or Holders have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request, (d) the Trustee for 60 days after its receipt of such
notice, request and offer of indemnity has failed to institute any such proceeding and (e) no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal
amount of the Outstanding Securities of this series; it being understood and intended that no one or more of such Holders shall have any right in any manner whatsoever by virtue of, or by availing of, any provision of this Indenture to affect,
disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the
equal and ratable benefit of all such Holders. 
 No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place(s) and rate, and in the coin or currency, herein prescribed. 

[If a Global Security, insert—This Global Security or portion hereof may not be exchanged for Definitive Securities of this series
except in the limited circumstances provided in the Indenture. The holders of beneficial interests in this Global Security will not be entitled to receive physical delivery of Definitive Securities except as described in the Indenture and will not
be considered the Holders thereof for any purpose under the Indenture.] 

  
 A-5 

 [If a Definitive Security, insert—As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registerable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in The City of New York, or, subject to any
laws or regulations applicable thereto and to the right of the Company (limited as provided in the Indenture) to rescind the designation of any such transfer agent, at the offices of
                        in the Borough of Manhattan, The City of New York or at such other offices or agencies as the Company may
designate, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more
new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.] 

The Securities of this series are issuable only in registered form without coupons in denominations of U.S. $2,000 and any integral
multiple of U.S. $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of
like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 
 No service charge shall be made for
any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Prior to due presentment of this Security for registration of transfer, the Company, any Guarantor, the Trustee and any agent of the Company,
a Guarantor or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, regardless of whether this Security be overdue, and none of the Company, any Guarantor, the Trustee nor any such agent
shall be affected by notice to the contrary. 
 No recourse under or upon any obligation, covenant or agreement of or contained in the
Indenture or of or contained in any Security, or the Securities Guarantee endorsed thereon, or for any claim based thereon or otherwise in respect thereof, or in any Security or in the Securities Guarantee, or because of the creation of any
indebtedness represented thereby, shall be had against any incorporator, shareholder, member, officer, manager or director, as such, past, present or future, of the Company or any Guarantor or of any successor Person, either directly or through the
Company or any Guarantor or any successor Person, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment, penalty or otherwise; it being expressly understood that all such liability is hereby expressly
waived and released by the acceptance hereof and as a condition of, and as part of the consideration for, the execution of the Indenture and the issuance of the Securities. 

This Security shall be governed by and construed in accordance with the laws of the State of New York. 

All terms used in this Security that are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

  
 A-6 

 [If a Definitive Security, insert as a separate page— 

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
                        (Please Print or Typewrite Name and Address of Assignee) the within instrument of ROWAN COMPANIES, INC.,
and does hereby irrevocably constitute and appoint                             Attorney to transfer said
instrument on the books of the within-named corporation, with full power of substitution in the premises. 
 Please Insert Social Security or 

Other Identifying Number of Assignee: 
  

					
	  
	 		 	  

			
	Dated:                                     
                                         
                            	 		 	  

		 		 	 (Signature)

Signature Guarantee:                     
                                         
                                         
                                         
                                         
                                 

(Participant in a Recognized Signature 

Guaranty Medallion Program) 

NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular,
without alteration or enlargement or any change whatsoever. 

  
 A-7 

 [If a Global Security, insert as a separate page— 

SCHEDULE OF INCREASES OR DECREASES 

IN GLOBAL SECURITY 
 The
following increases or decreases in this Global Security have been made: 
  

									
	Date of Exchange	  	Amount of
Decrease in
Principal
Amount of this
Global Security	  	Amount of
Increase in
Principal Amount
of this 
Global Security	  	Principal Amount
of this Global
Security Following
Such Decrease
(or Increase)	  	
Signature of
Authorized Officer
of Trustee or
Depositary

  
 A-8 

 SECURITIES GUARANTEE NOTATION 

Each Guarantor (which term includes any successor Person in such capacity under the Indenture) has fully, unconditionally and absolutely
guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture, the due and punctual payment of the principal of, and premium, if any, and interest on the Securities of this series and all other amounts due and
payable under the Indenture and the Securities of this series by the Company. 
 The obligations of each Guarantor to the Holders of
Securities of this series and to the Trustee pursuant to the Securities Guarantee and the Indenture are expressly set forth in Article Fourteen of the Indenture and reference is hereby made to the Indenture for the precise terms of the
Securities Guarantee. 
  

			
	Guarantor:
	
	 ROWAN COMPANIES PLC

		
	 By:
	 	 
	 Name:
	 	
	 Title:
	 	
	
	The above signatory for Rowan Companies plc signed in the presence of:
	
	 
	
	 Print name of witness:

	 Address:

  
 A-9EX-10.1

 Exhibit 10.1 

MANAGEMENT CONTINUITY AGREEMENT 

This Management Continuity Agreement, dated as of January 10, 2014 (“Agreement”), is by and between Bay Banks of Virginia,
Inc., a Virginia corporation (the “Company”), and Deborah M. Evans (the “Executive”). 
 The parties, intending to be
legally bound, agree as follows: 
  

	 	1.	Purpose 

 The Company recognizes that the possibility of a Change in Control (as defined
in Section 12) exists and the uncertainty and questions that it may raise among management may result in the departure or distraction of management personnel to the detriment of the Company and its shareholders. Accordingly, the purpose of this
Agreement is to encourage the Executive to continue employment with the Company and/or its affiliates or successors in interest by merger or acquisition after a Change in Control by providing reasonable employment security to the Executive and to
recognize the prior service of the Executive in the event of a termination of employment under certain circumstances after a Change in Control. 
  

	 	2.	Term of the Agreement 

 This Agreement is effective January 1, 2014 (the
“Effective Date”) and will expire at the end of the calendar day on December 31, 2014; provided, that on January 1, 2015 and on each January 1st thereafter (each such January 1st is referred to as the “Renewal
Date”), this Agreement will be automatically extended for an additional calendar year. This Agreement will not, however, be extended if the Company gives written notice of such non-renewal to the Executive no later than September 30th
before the Renewal Date (the original and any extended term of this Agreement is referred to as the “Change in Control Period”). 
  

	 	3.	Employment After a Change in Control 

 If a Change in Control of the Company occurs
during the Change in Control Period and the Executive is employed by the Company on the date the Change in Control occurs (the “Change in Control Date”), the Company will continue to employ the Executive in accordance with the terms and
conditions of this Agreement for the period beginning on the Change in Control Date and ending on the first anniversary of such date (the “Employment Period”). If a Change in Control occurs on account of a series of transactions, the
Change in Control Date is the date of the last of such transactions. 

	 	4.	Terms of Employment 

 (a) Position and Duties. During the Employment Period,
(i) the Executive’s position, authority, duties and responsibilities will be commensurate in all material respects with the most significant of those held, exercised and assigned to the Executive by the Company at any time during the
90-day period immediately preceding the Change in Control Date and (ii) the Executive’s services will be performed at the location where the Executive was employed immediately preceding the Change in Control Date or any office that is the
headquarters of the Company and is less than 50 miles from such location. 
 (b) Compensation. 

(i) Base Salary. During the Employment Period, the Executive will receive an annual base salary (the “Annual Base
Salary”) at least equal to the base salary paid or payable to the Executive by the Company and its affiliated companies for the twelve-month period immediately preceding the Change in Control Date. During the Employment Period, the Annual Base
Salary will be reviewed and will be increased at any time and from time to time as will be substantially consistent with increases in base salary generally awarded in the ordinary course of business to other peer executives of the Company and its
affiliated companies. Any increase in the Annual Base Salary will not serve to limit or reduce any other obligation to the Executive under this Agreement. The Annual Base Salary will not be reduced after any such increase, and the term Annual Base
Salary as used in this Agreement will refer to the Annual Base Salary as so increased. The term “affiliated companies” includes any company, including without limitation the Bank of Lancaster, that is controlled by, controlling or under
common control with the Company. 
 (ii) Annual Bonus. In addition to the Annual Base Salary, the Executive will be
awarded for each year ending during the Employment Period and for which the Executive is employed on the last day of the year an annual bonus (the “Annual Bonus”) in cash at least equal to the average annual bonus paid or payable,
including by reason of any deferral, for the two years immediately preceding the year in which the Change in Control Date occurs. Each such Annual Bonus will be paid no later than two and one-half months after the end of the year for which the
Annual Bonus is awarded. 
 (iii) Incentive, Savings and Retirement Plans. During the Employment Period, the Executive
will be entitled to participate in all incentive (including stock incentive), savings and retirement, insurance plans, policies and programs applicable generally to other peer executives of the Company and its affiliated companies, but in no event
will such plans, policies and programs provide the Executive with incentive opportunities, savings opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate, than those provided by the Company and its
affiliated companies for the Executive under such plans, policies and programs as in effect at any time during the six months immediately preceding the Change in Control Date. 

  
 2 

 (iv) Welfare Benefit Plans. During the Employment Period, the Executive
and her eligible dependents will be eligible for participation in and will receive all benefits under welfare benefit plans, policies and programs provided by the Company and its affiliated companies to the extent applicable generally to other peer
executives of the Company and its affiliated companies, but in no event will such plans, policies and programs provide the Executive with benefits that are less favorable, in the aggregate, than the most favorable of such plans, policies and
programs in effect at any time during the six months immediately preceding the Change in Control Date. 
 (v) Fringe
Benefits. During the Employment Period, the Executive will be entitled to fringe benefits in accordance with the most favorable plans, policies and programs of the Company and its affiliated companies in effect for the Executive at any time
during the six months immediately preceding the Change in Control Date or, if more favorable to the Executive, as in effect generally from time to time after the Change in Control Date with respect to other peer executives of the Company and its
affiliated companies. 
 (vi) Paid Time Off. During the Employment Period, the Executive will be entitled to paid time
off in accordance with the most favorable plans, policies and programs of the Company and its affiliated companies in effect for the Executive at any time during the six months immediately preceding the Change in Control Date or, if more favorable
to the Executive, as in effect generally from time to time after the Change in Control Date with respect to other peer executives of the Company and its affiliated companies. 
  

	 	5.	Termination of Employment Following a Change in Control 

 (a) Death or Disability.
The Executive’s employment will terminate automatically upon the Executive’s death during the Employment Period. If the Company determines in good faith that the Disability of the Executive has occurred during the Employment Period, it may
terminate the Executive’s employment. For purposes of this Agreement, “Disability” means the Executive’s inability to perform the essential functions of her position with the Company on a full time basis for 180 consecutive days
or a total of at least 240 days in any twelve month period as a result of the Executive’s incapacity due to physical or mental illness (as determined by an independent physician selected by the Board of Directors of the Company). 

(b) Cause. The Company may terminate the Executive’s employment during the Employment Period for Cause. For purposes of this
Agreement, “Cause” means (i) gross incompetence, gross negligence, willful misconduct in office or breach of a material fiduciary duty owed to the Company or any affiliated company; (ii) conviction of or entering of a guilty plea
or a plea of no contest with respect to a felony or a crime of moral turpitude or commission of an act of embezzlement or fraud against the Company or any affiliated company; (iii) any material breach by the Executive of a material term of this
Agreement, 

  
 3 

 
including, without limitation, material failure to perform a substantial portion of her duties and responsibilities hereunder; or (iv) deliberate dishonesty of the Executive with respect to
the Company or any affiliated company. 
 (c) Good Reason. The Executive’s employment may be terminated during the Employment
Period by the Executive for Good Reason. For purposes of this Agreement, “Good Reason” means: 
 (i) a material
reduction in the Executive’s duties or authority; 
 (ii) a failure by the Company to comply with any of the provisions
of Section 4(b); 
 (iii) the Company’s requiring the Executive to be based at any office or location other than
that described in Section 4(a)(ii); 
 (iv) the failure by the Company to comply with and satisfy Section 7(b); or

 (v) the Company fails to honor any term or provision of this Agreement; 

Notwithstanding the above, Good Reason shall not include an isolated, insubstantial and/or inadvertent action not taken in bad faith by the Company and which
is remedied by the Company within a reasonable time after receipt of notice thereof if given by the Executive. 
 (d) Notice of
Termination. Any termination during the Employment Period by the Company or by the Executive for Good Reason shall be communicated by written Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of
Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon. 
 (e) Date
of Termination. “Date of Termination” means (i) if the Executive’s employment is terminated by the Company for Cause, or by the Executive for Good Reason, the date of receipt of the Notice of Termination or any later date
specified therein, as the case may be, (ii) if the Executive’s employment is terminated by the Company other than for Cause or Disability, the date specified in the Notice of Termination (which shall not be less than 30 nor more than 60
days from the date such Notice of Termination is given), and (iii) if the Executive’s employment is terminated for Disability, 30 days after Notice of Termination is given, provided that the Executive shall not have returned to the
full-time performance of her duties during such 30-day period. 

  
 4 

	 	6.	Compensation Upon Termination 

 (a) Termination Without Cause or for Good Reason.
The Executive will be entitled to the following benefits if, during the Employment Period, the Company terminates her employment without Cause or the Executive terminates her employment with the Company or any affiliated company for Good Reason.

 (i) Accrued Obligations. The Accrued Obligations are the sum of: (1) the Executive’s Annual Base Salary
through the Date of Termination at the rate in effect just prior to the time a Notice of Termination is given; (2) the amount, if any, of any incentive or bonus compensation theretofore earned which has not yet been paid; (3) the product
of the Annual Bonus paid or payable, including by reason of deferral, for the most recently completed year and a fraction, the numerator of which is the number of days in the current year through the Date of Termination and the denominator of which
is 365; and (4) any benefits or awards (including both the cash and stock components) which pursuant to the terms of any plans, policies or programs have been earned or become payable, but which have not yet been paid to the Executive (but not
including amounts that previously had been deferred at the Executive’s request, which amounts will be paid in accordance with the Executive’s existing directions). The Accrued Obligations will be paid to the Executive in a lump sum cash
payment within 10 days after the Date of Termination; 
 (ii) Salary Continuance Benefit. The Salary Continuance
Benefit is an amount equal to 1.0 times the Executive’s Final Compensation. For purposes of this Agreement, “Final Compensation” means the Annual Base Salary in effect at the Date of Termination, plus the highest Annual Bonus paid or
payable for the two most recently completed years and any amount contributed by the Executive during the most recently completed year pursuant to a salary reduction agreement or any other program that provides for pre-tax salary reductions or
compensation deferrals. The Salary Continuance Benefit will be paid to the Executive in a lump sum cash payment not later than the 45th day following the Date of Termination; and 

(iii) Welfare Continuance Benefit. For 12 months following the Date of Termination, the Executive and her dependents
will continue to be covered under all health and dental plans, disability plans, life insurance plans and all other welfare benefit plans (as defined in Section 3(1) of ERISA) (“Welfare Plans”) in which the Executive or her dependents
were participating immediately prior to the Date of Termination (the “Welfare Continuance Benefit”). The Company will pay all or a portion of the cost of the Welfare Continuance Benefit for the Executive and her dependents under the
Welfare Plans on the same basis as applicable, from time to time, to active employees covered under the Welfare Plans and the Executive will pay any additional costs. If participation in any one or more of the Welfare Plans included in the Welfare
Continuance Benefit is not possible under the terms of the Welfare Plan or any provision of law would create an adverse tax effect for the Executive or the Company due to such participation, the Company will provide substantially identical benefits
directly or through an insurance arrangement. The Welfare Continuance Benefit as to any Welfare Plan will cease if and when the Executive has obtained coverage under one or more welfare benefit plans of a subsequent employer that provides for equal
or greater benefits to the Executive and her dependents with respect to the specific type of benefit. The Executive or her dependents will become eligible for COBRA continuation coverage as of the date the Welfare Continuance Benefit ceases for all
health and dental benefits. 

  
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 (b) Death. If the Executive dies during the Employment Period, this Agreement will
terminate without any further obligation on the part of the Company under this Agreement, other than for (i) payment of the Accrued Obligations and six months of the Executive’s Base Salary (which shall be paid to the Executive’s
beneficiary designated in writing or her estate, as applicable, in a lump sum cash payment within 30 days of the date of death); (ii) the timely payment or provision of the Welfare Continuance Benefit to the Executive’s spouse and other
dependents for 12 months following the date of death; and (iii) the timely payment of all death and retirement benefits pursuant to the terms of any plan, policy or arrangement of the Company and its affiliated companies. 

(c) Disability. If the Executive’s employment is terminated because of the Executive’s Disability during the Employment
Period, this Agreement will terminate without any further obligation on the part of the Company under this Agreement, other than for (i) payment of the Accrued Obligations and six months of the Executive’s Base Salary (which shall be paid
to the Executive in a lump sum cash payment within 30 days of the Date of Termination; (ii) the timely payment or provision of the Welfare Continuance Benefit for 12 months following the Date of Termination; and (iii) the timely payment of
all disability and retirement benefits pursuant to the terms of any plan, policy or arrangement of the Company and its affiliated companies. 

(d) Cause; Other than for Good Reason. If the Executive’s employment is terminated for Cause during the Employment Period, this
Agreement will terminate without further obligation to the Executive other than the payment to the Executive of the Annual Base Salary through the Date of Termination, plus the amount of any compensation previously deferred by the Executive. If the
Executive terminates employment during the Employment Period, excluding a termination for Good Reason, this Agreement will terminate without further obligation to the Executive other than for the Accrued Obligations (which will be paid in a lump sum
in cash within 30 days of the Date of Termination) and any other benefits to which the Executive may be entitled pursuant to the terms of any plan, program or arrangement of the Company and its affiliated companies. 

(e) Maximum Benefit. No amounts will be payable and no benefits will be provided under this Agreement to the extent that such payments
or benefits, together with other payments or benefits under other plans, agreements or arrangements, would make the Executive liable for the payment of an excise tax under Section 4999 of the Internal Revenue Code of 1986, as amended (the
“Code”), or any successor provision. The amounts otherwise payable and the benefits otherwise to be provided under this Agreement shall be reduced in a manner determined by the Company (by the minimum possible amount) that is consistent
with the requirements of Section 409A of the Code until no amount payable to the Executive will be subject to such excise tax. All calculations and determinations under this Section 6(e) shall be made by an independent accounting firm or
independent tax counsel appointed by the Company (the “Tax Advisor”) whose determinations shall be conclusive and binding on the Company and the Executive for all 

  
 6 

 
purposes. The Tax Advisor may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G and Section 4999 of the Code. The Company shall
bear all costs of the Tax Advisor. 
  

	 	7.	Binding Agreement; Successors 

 (a) This Agreement will be binding upon and inure to the
benefit of the Executive (and her personal representative), the Company and any successor organization or organizations which shall succeed to substantially all of the business and property of the Company, whether by means of merger, consolidation,
acquisition of all or substantially of all of the assets of the Company or otherwise, including by operation of law. 
 (b) The Company will
require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner
and to the same extent that the Company would be required to perform it if no such succession had taken place. 
 (c) For purposes of this
Agreement, the term “Company” includes any subsidiaries of the Company and any corporation or other entity which is the surviving or continuing entity in respect of any merger, consolidation or form of business combination in which the
Company ceases to exist, provided, however, that for purposes of determining whether a Change in Control has occurred herein, the term “Company” refers to Bay Banks of Virginia, Inc. or its successors. 

 

	 	8.	Fees and Expenses; Mitigation 

 (a) The Company will pay or reimburse the Executive for
all costs and expenses, including without limitation court costs and reasonable attorneys’ fees, incurred by the Executive (i) in contesting or disputing any termination of the Executive’s employment or (ii) in seeking to obtain
or enforce any right or benefit provided by this Agreement, in each case provided the Executive is the prevailing party in a proceeding brought in a court of competent jurisdiction. The Company shall reimburse the foregoing costs on a current basis
after the Executive submits a claim for reimbursement with the proper documentation of the costs and expenses, provided that no expense will be reimbursed after the end of the year following the year in which the expense is incurred. 

(b) The Executive shall not be required to mitigate the amount of any payment the Company becomes obligated to make to the Executive in
connection with this Agreement, by seeking other employment or otherwise. Except as specifically provided above with respect to the Welfare Continuance Benefit, the amount of any payment provided for in Section 6 shall not be reduced, offset or
subject to recovery by the Company by reason of any compensation earned by the Executive as the result of employment by another employer after the Date of Termination, or otherwise. 

  
 7 

	 	9.	No Employment Contract 

 Nothing in this Agreement will be construed as creating an
employment contract between the Executive and the Company prior to a Change in Control. 
  

	 	10.	Continuance of Welfare Benefits Upon Death 

 If the Executive dies while receiving a
Welfare Continuation Benefit, the Executive’s spouse and other dependents will continue to be covered under all applicable Welfare Plans during the remainder of the 12-month coverage period. The Executive’s spouse and other dependents will
become eligible for COBRA continuation coverage for health and dental benefits at the end of such 12-month period. 
  

	 	11.	Notice 

 Any notices and other communications provided for by this Agreement will be
sufficient if in writing and delivered in person, or sent by registered or certified mail, postage prepaid (in which case notice will be deemed to have been given on the third day after mailing), or by overnight delivery by a reliable overnight
courier service (in which case notice will be deemed to have been given on the day after delivery to such courier service). Notices to the Company shall be directed to the Secretary of the Company, with a copy directed to the Chairman of the Board
of Directors of the Company. Notices to the Executive shall be directed to her last known address. 
  

	 	12.	Definition of a Change in Control 

 No benefits shall be payable hereunder unless there
shall have been a Change in Control of the Company as set forth below. For purposes of this Agreement, a “Change in Control” means any of the following ((a), (b), (c) or (d)): 

(a) The acquisition by any Person of beneficial ownership of 20% or more of the then outstanding shares of common stock of the Company,
provided that an acquisition directly from the Company (excluding an acquisition by virtue of the exercise of a conversion privilege) shall not constitute a Change in Control. 

(b) Individuals who constitute the Board of Directors of the Company on the date of this Agreement (the “Incumbent Board”) cease to
constitute a majority of the Company’s Board of Directors, provided that any director whose nomination was approved by a vote of at least two-thirds of the directors then comprising the Incumbent Board will be considered a member of the
Incumbent Board, but excluding any such individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Company. 

  
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 (c) Approval by the shareholders of the Company of a reorganization, merger, share exchange or
consolidation (a “Reorganization”), provided that shareholder approval of a Reorganization will not constitute a Change in Control if, upon consummation of the Reorganization, each of the following conditions is satisfied: 

(i) more than 50% of the then outstanding shares of common stock of the corporation resulting from the Reorganization is
beneficially owned by all or substantially all of the former shareholders of the Company in substantially the same proportions as their ownership existed in the Company immediately prior to the Reorganization; 

(ii) no Person beneficially owns 20% or more of either (1) the then outstanding shares of common stock of the corporation
resulting from the transaction or (2) the combined voting power of the then outstanding voting securities of such corporation entitled to vote generally in the election of directors; and 

(iii) at least a majority of the members of the board of directors of the corporation resulting from the Reorganization were
members of the Incumbent Board at the time of the execution of the initial agreement providing for the Reorganization. 
 (d) Approval by
the shareholders of the Company of a complete liquidation or dissolution of the Company, or of the sale or other disposition of all or substantially all of the assets of the Company. 

For purposes of this Agreement, “Person” means any individual, entity or group (within the meaning of Section 13(d)(3) of the
Securities Exchange Act of 1934 (the “Exchange Act”)), other than any employee benefit plan (or related trust) sponsored or maintained by the Company or any affiliated company, and “beneficial ownership” has the meaning given the
term in Rule 13d-3 under the Exchange Act. 
  

	 	13.	Confidentiality 

 The Executive will hold in a fiduciary capacity for the benefit of the
Company all secret or confidential information, knowledge or data relating to the Company or any of its affiliated companies and their respective businesses, which was obtained by the Executive during the Executive’s employment by the Company
or any of its affiliated companies and which will not be or become public knowledge. After termination of the Executive’s employment with the Company, the Executive will not, without the prior written consent of the Company or except as may
otherwise be required by law or legal process, communicate or divulge any such information, knowledge or data to anyone other than the Company and those designated by it. In no event shall an asserted violation of the provisions of this
Section 13 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive under this Agreement. 

  
 9 

	 	14.	Miscellaneous 

 No provision of this Agreement may be amended, modified, waived or
discharged unless such amendment, modification, waiver or discharge is agreed to in a writing signed by the Executive and the Chairman of the Board, Chief Executive Officer or President of the Company. No waiver by either party hereto at any time of
any breach by the other party hereto of, or of compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior
or subsequent time. 
  

	 	15.	Entire Agreement 

 This Agreement, as it may hereafter be amended, entered into between
the parties hereto, constitutes the entire agreement between the parties with respect to the subject matter hereof and no agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made
by either party that are not expressly set forth in this Agreement. This Agreement supersedes all other prior written or oral agreements and understandings with respect to the subject matter of this Agreement. All such agreements, understandings and
arrangements will be deemed terminated as of the Effective Date and will, as of the Effective Date, be of no force or effect. The Executive expressly disclaims any rights under any such prior agreements, understandings and arrangements. 

 

	 	16.	Governing Law 

 The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the Commonwealth of Virginia without reference to its conflicts of laws principles. 
  

	 	17.	Validity 

 The invalidity or unenforceability of any provision of this Agreement shall
not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect. 
  

	 	18.	Deferred Compensation Omnibus Provision 

 (a) It is intended that payments and benefits
under this Agreement that are considered to be deferred compensation subject to Section 409A of the Code shall be provided and paid in a manner, and at such time and in such form, as complies with the applicable requirements of
Section 409A of the Code to avoid the unfavorable tax consequences provided for therein for non-compliance. Notwithstanding any other provision of this Agreement, the Company’s Compensation Committee or Board of Directors is authorized to
amend this Agreement, to amend or void any election made by the Executive under this Agreement and/or to delay the payment of any monies and/or provision of any benefits in such manner as may be determined by it to be necessary or

  
 10 

 
appropriate to comply with Section 409A of the Code. For purposes of this Agreement, all rights to payments and benefits hereunder shall be treated as rights to receive a series of separate
payments and benefits to the fullest extent allowed by Section 409A of the Code. 
 (b) If the Executive is deemed on the date of
separation of service with the Company to be a “specified employee,” as defined in Section 409A(a)(2)(B) of the Code, then payment of any amount or provision of any benefit under this Agreement that is considered deferred compensation
subject to Section 409A of the Code shall not be made or provided prior to the earlier of (A) the expiration of the six-month period measured from the date of separation of service or (B) the date of death (the “409A Deferral
Period”). 
 (c) In the case of benefits that are subject to Section 409A of the Code, the Executive may pay the cost of benefit
coverage, and thereby obtain benefits, during the 409A Deferral Period and then be reimbursed by the Company when the 409A Deferral Period ends. On the first day after the end of the 409A Deferral Period, all payments delayed pursuant to this
Section 18 (whether they would have otherwise been payable in a single lump sum or in installments in the absence of such deferral) shall be paid or reimbursed to the Executive in a lump sum, and any remaining payments and benefits due under
this Agreement shall be paid or provided as originally scheduled. 
 (d) “Termination of employment” shall have the same meaning
as “separation of service,” as that phrase is defined in Section 409A of the Code (taking into account all rules and presumptions provided for in the Section 409A regulations). 

 

	 	19.	Clawback 

 The Executive agrees that any incentive based compensation or award that she
receives, or has received, from the Company or its affiliated companies under this Agreement or otherwise, will be subject to clawback by the Company as may be required by applicable law or stock exchange listing requirement and on such basis as the
Board of Directors of the Company determines, but in no event with a look-back period of more than three years, unless required by applicable law or stock exchange listing requirement. 

[Signatures follow on next page.] 

  
 11 

 IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by Bay Banks of
Virginia, Inc. by its duly authorized officer, and by the Executive, as of the date first above written. 
  

			
	BAY BANKS OF VIRGINIA, INC.
		
	By:	 	 /s/ Randal R. Greene

		 	Randal R. Greene
		 	President and Chief Executive Officer
	
	EXECUTIVE:
		
		 	 /s/ Deborah M. Evans

		 	Deborah M. Evans

  
 12

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