Document:

EX-10.2

 Exhibit 10.2 

EXECUTION VERSION 

INVESTMENT AGREEMENT 
 AMONG 

SEADRILL LIMITED, 
 THE OTHER
COMPANY PARTIES 
 AND 
 THE
COMMITMENT PARTIES PARTY HERETO 
 Dated as of September 12, 2017 

 

 TABLE OF CONTENTS 
  

					
		 		  	Page
	 ARTICLE I
  

	DEFINITIONS
	Section 1.1	 	Definitions	  	2
	Section 1.2	 	Construction	  	22
	Section 1.3	 	 Investment Agreement Effective Date
  
	  	23
	 ARTICLE II
  

	 ISSUE AND PURCHASE OF NEW SECURED NOTES AND EQUITY SECURITIES

 

	Section 2.1	 	New Money Commitments; Equity Grants	  	23
	Section 2.2	 	Applicable Law	  	24
	Section 2.3	 	Default	  	25
	Section 2.4	 	Escrow Account; Funding	  	26
	Section 2.5	 	Closing	  	28
	Section 2.6	 	 Designation and Assignment Rights
  
	  	30
	 ARTICLE III

 

	 REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

	Section 3.1	 	Organization and Qualification	  	32
	Section 3.2	 	Corporate Power and Authority	  	32
	Section 3.3	 	Execution and Delivery; Enforceability	  	33
	Section 3.4	 	Reorganisation; New Seadrill	  	34
	Section 3.5	 	Authorized and Issued Equity Interests	  	34
	Section 3.6	 	No Conflict	  	35
	Section 3.7	 	Consents and Approvals	  	35
	Section 3.8	 	Financial Statements	  	36
	Section 3.9	 	Financial Projections	  	36
	Section 3.10	 	Registration Statement; Offering Memorandum	  	36
	Section 3.11	 	Company SEC Documents and Disclosure Statement	  	37
	Section 3.12	 	Absence of Certain Changes	  	37
	Section 3.13	 	No Violation; Compliance with Laws	  	37
	Section 3.14	 	Legal Proceedings	  	37
	Section 3.15	 	Labor Relations	  	37
	Section 3.16	 	Intellectual Property	  	38
	Section 3.17	 	Title to Real and Personal Property	  	38
	Section 3.18	 	Licenses and Permits	  	39

  
 -i- 

					
	Section 3.19	 	Environmental	  	39
	Section 3.20	 	Tax Returns	  	40
	Section 3.21	 	Material Contracts	  	41
	Section 3.22	 	No Unlawful Payments	  	41
	Section 3.23	 	Compliance with Money Laundering Laws	  	42
	Section 3.24	 	Compliance with Sanctions Laws	  	42
	Section 3.25	 	No Broker’s Fees	  	42
	Section 3.26	 	Insurance	  	42
	Section 3.27	 	Investment Company Act	  	43
	Section 3.28	 	No General Solicitation	  	43
	Section 3.29	 	Rule 144A Eligibility	  	43
	Section 3.30	 	Securities Registration Exemption	  	43
	Section 3.31	 	Similar Offerings	  	43
	Section 3.32	 	No Undisclosed Relationship	  	43
	Section 3.33	 	No Undisclosed Liabilities	  	44
	Section 3.34	 	No Registration Rights	  	44
	Section 3.35	 	Alternative Restructuring Proposals	  	44
	Section 3.36	 	Execution of the RSA	  	44
	Section 3.37	 	 EY Paper
  
	  	44
	 ARTICLE IV
  

	 REPRESENTATIONS AND WARRANTIES OF THE COMMITMENT PARTIES

 

	Section 4.1	 	Organization	  	44
	Section 4.2	 	Organizational Power and Authority	  	44
	Section 4.3	 	Execution and Delivery	  	44
	Section 4.4	 	No Conflict	  	45
	Section 4.5	 	Consents and Approvals	  	45
	Section 4.6	 	No Registration	  	45
	Section 4.7	 	Purchasing Intent	  	46
	Section 4.8	 	Sophistication; Investigation	  	46
	Section 4.9	 	No Broker’s Fees	  	46
	Section 4.10	 	 Sufficient Funds
  
	  	46
	 ARTICLE V
  

	 ADDITIONAL COVENANTS

 

	Section 5.1	 	Conduct of Business	  	46
	Section 5.2	 	Other Covenants and Agreement Regarding Disclosure and Effectuation and Implementation of the Restructuring Transactions	  	47
	Section 5.3	 	New Secured Notes DTC Eligibility	  	48
	Section 5.4	 	Use of Proceeds	  	49
	Section 5.5	 	Cooperation Regarding Security	  	49
	Section 5.6	 	New Board of Managers	  	49

  
 -ii- 

					
	Section 5.7	 	Access to Information; Confidentiality	  	49
	Section 5.8	 	Resale Cooperation	  	52
	Section 5.9	 	Commercially Reasonable Efforts	  	53
	Section 5.10	 	Registration Rights	  	54
	Section 5.11	 	Equity Securities DTC Eligibility	  	54
	Section 5.12	 	Share Legend	  	54
	Section 5.13	 	Antitrust Approval	  	55
	Section 5.14	 	New Seadrill and New Structure	  	56
	Section 5.15	 	Go Shop	  	56
	Section 5.16	 	Business Update Conference Calls	  	57
	Section 5.17	 	Financial Information	  	57
	Section 5.18	 	Further Assurances	  	58
	Section 5.19	 	Organizational Documents	  	58
	Section 5.20	 	Rule 144A Information	  	58
	Section 5.21	 	 Tax Treatment
  
	  	58
	 ARTICLE VI
  

	 CONDITIONS TO THE OBLIGATIONS OF THE PARTIES

 

	Section 6.1	 	Conditions to the Obligations of the Commitment Parties	  	59
	Section 6.2	 	Waiver of Conditions to Obligations of Commitment Parties	  	61
	Section 6.3	 	Conditions to the Obligations of the Company	  	61
	Section 6.4	 	Conditions to the Obligations of All Parties	  	62
	Section 6.5	 	Waiver of Conditions to Obligations of All Parties	  	62
	Section 7.1	 	Indemnification	  	62
	Section 7.2	 	Indemnification Procedures	  	63
	Section 7.3	 	Settlement of Indemnified Claims	  	64
	Section 7.4	 	Contribution	  	64
	Section 7.5	 	 Survival and Exclusive Remedy
  
	  	65
	 ARTICLE VIII

 

	 TERMINATION
  

	Section 8.1	 	Consensual Termination	  	65
	Section 8.2	 	Termination by Commitment Parties	  	65
	Section 8.3	 	Termination by the Company	  	67
	Section 8.4	 	Return of Deposit	  	68
	Section 8.5	 	 Effect of Termination
  
	  	69
	ARTICLE IX	  	
		
	FEES AND EXPENSES	  	
			
	Section 9.1	 	New Secured Notes related Fees	  	69

  
 3 

					
	Section 9.2	 	Equity Purchaser Fees	  	70
	Section 9.3	 	Structuring Fees	  	70
	Section 9.4	 	Expense Reimbursement; Incremental Expenses	  	71
	Section 9.5	 	Further Agreements	  	72
	
	ARTICLE X
	
	GENERAL PROVISIONS
			
	Section 10.1	 	Notices	  	73
	Section 10.2	 	Assignment; Third Party Beneficiaries	  	75
	Section 10.3	 	Prior Negotiations; Entire Agreement	  	76
	Section 10.4	 	Governing Law; Venue	  	76
	Section 10.5	 	Waiver of Jury Trial	  	77
	Section 10.6	 	Counterparts	  	77
	Section 10.7	 	Waivers and Amendments; Rights Cumulative; Consent	  	77
	Section 10.8	 	Headings	  	77
	Section 10.9	 	Specific Performance	  	77
	Section 10.10	 	No Survival	  	77
	Section 10.11	 	Damages	  	78
	Section 10.12	 	No Reliance	  	78
	Section 10.13	 	Publicity	  	78
	Section 10.14	 	Settlement Discussions	  	78
	Section 10.15	 	No Recourse	  	79
	Section 10.16	 	Enforceability of Agreement	  	79
	Section 10.17	 	Relationship Among Parties	  	79
	
	SCHEDULES
			
	Schedule 1	 	Commitment Schedule	  	
	Schedule 2	 	Form of Joinder Agreement	  	
	Schedule 3	 	Registration Rights Agreement Term Sheet	  	
	Schedule 4	 	Material Documents	  	
	Schedule 5	 	Notice Information	  	
	
	EXHIBITS
			
	Exhibit A	 	Form of Rights Offering Procedures	  	
	Exhibit B	 	Board Governance Term Sheet	  	

  

  
 -iv- 

 INVESTMENT AGREEMENT 

THIS INVESTMENT AGREEMENT (including all exhibits, schedules, and annexes hereto, as may be amended, supplemented or otherwise
modified from time to time, this “Agreement”), dated as of September 12, 2017, is made by and among Seadrill Limited, a company incorporated under the laws of Bermuda with registration number 36832, as the debtor in
possession and reorganized debtor, as applicable, and the ultimate controlling parent of each of the other Debtors (as defined below) (the “Company”); (ii) each of the other Company Parties (as defined below) and
(iii) each Commitment Party (as defined below). The Company, each other Company Party, each Commitment Party and each Person that has executed a Joinder Agreement substantially in the form of Schedule 2 (each, a “Joinder
Agreement”) is referred to herein individually as a “Party” and collectively as the “Parties.” Capitalized terms that are used but not otherwise defined in this Agreement shall have the
meanings given to them in Section 1.1 hereof or, if not defined therein, shall have the meanings given to them in the Restructuring Support and Lock-Up Agreement (as defined below).

 RECITALS 

WHEREAS, the Company and the other Debtors intend to file voluntary petitions for relief (the
“Chapter 11 Cases”) under chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101, et seq. (the “Bankruptcy Code”) in the Bankruptcy Court on
or before 12 September 2017 (such actual date of filing, the “Petition Date”); 
 WHEREAS,
simultaneously with the execution and delivery of this Agreement, the Company Parties, the Consenting Lenders, the Consenting Noteholders, the Commitment Parties, SFL, the Consenting Stakeholders, the Agents/Trustees, and solely with respect to
Sections 4.06, 4.07, 13 and 14 therein, the Seadrill ECAs, entered into a Restructuring Support and Lock-Up Agreement, dated as of September 12, 2017 (including the terms and conditions set forth in the
Restructuring Term Sheet attached as Exhibit 1 to Exhibit B to the Restructuring Support and Lock-Up Agreement (the “Restructuring Term Sheet”) and including all exhibits, schedules,
and annexes thereto, as may be amended, supplemented or otherwise modified from time to time, the “Restructuring Support and Lock-Up Agreement”); 

WHEREAS, the Company will conduct certain restructuring and recapitalization transactions with respect to the Company
Parties’ capital structure pursuant to a plan of reorganization to be filed in connection with the Chapter 11 Cases, reflecting the Restructuring Support and Lock-Up Agreement (as amended,
supplemented or otherwise modified from time to time consistent with the terms of the Restructuring Support and Lock-Up Agreement and this Agreement); 

WHEREAS, in accordance with the Plan, Restructuring Support and Lock-Up Agreement and
this Agreement, the Company (or New Seadrill) will form NSNCo (“NSNCo”), which will be an exempted company limited by shares to be incorporated in Bermuda and a direct and wholly-owned subsidiary of IHCo
(“IHCo”) (which will be an exempted company limited by shares to be incorporated in Bermuda and a newly formed indirect subsidiary of the Company (or New Seadrill)); 

 

 WHEREAS, subject to entry of the Confirmation Order and the other terms and
conditions specified in this Agreement (including the Rights Offerings), and also subject to and simultaneously with the consummation of the Plan, New Seadrill will: 

(a) through NSNCo, issue and sell $860,000,000 of new senior secured notes on the terms set forth in the New Secured Notes Term
Sheet and the Indenture (the “New Secured Notes”) to the Debt Commitment Parties (including any respective Ultimate Purchasers) and under certain circumstances set forth in the Plan, to certain other eligible holders of
General Unsecured Claims pursuant to the Debt Rights Offering; and 
 (b) issue and sell $200,000,000 of Equity Securities to
the Equity Commitment Parties (including any respective Ultimate Purchaser) and under certain circumstances set forth in the Plan, to certain other eligible holders of General Unsecured Claims pursuant to the Creditor Equity Rights Offering; and

 WHEREAS, each purchaser of the New Secured Notes shall receive, in addition to the New Secured Notes, its pro rata
share (calculated by dividing the aggregate principal amount of New Secured Notes purchased by such purchaser and the total aggregate principal amount of New Secured Notes purchased by all purchasers) of an amount of Equity Securities equal to 57.5%
of the total outstanding Equity Securities as of the Closing on a pre-dilution basis, after giving effect to the transactions described herein (the “Granted Equity Securities”).  
 NOW, THEREFORE, in consideration of the mutual promises, agreements,
representations, warranties and covenants contained herein, the Company, each other Company Party and each of the Commitment Parties hereby agree as follows:  

ARTICLE I 

DEFINITIONS 

Section 1.1 Definitions. Except as otherwise expressly provided in this Agreement, whenever used in this Agreement
(including any Exhibits and Schedules hereto), the following terms shall have the respective meanings specified below or in the Plan, as applicable: 

“Acquired Debt Securities” has the meaning set forth in Section 2.1(b). 

“Acquired Equity Securities” has the meaning set forth in Section 2.1(a).

 “Acquired Equity Securities Per Share Purchase Price” means the price per share of New Seadrill
at Closing. 

  
 -2- 

 “Additional Commitment Parties” means the funds and/or
accounts that are managed, advised or sub-advised by each of Fintech Advisory Inc. and Asia Research & Capital Management Limited. 

“Affiliate” means, with respect to any Person, any other Person that, directly or indirectly, Controls
or is Controlled by or is under common Control with such Person, and shall include the meaning of “affiliate” set forth in section 101(2) of the Bankruptcy Code. “Affiliated” has a correlative meaning. 

“Affiliated Fund” means any investment fund the primary investment advisor or manager to which is a
Commitment Party or an Affiliate thereof. 
 “Agents/Trustees” means each applicable
“Agent” and “Trustee” as such terms are defined in the Restructuring Support and Lock-Up Agreement. 

“Aggregate Debt Commitment Amount” means $860,000,000 in aggregate principal amount of New Secured
Notes. 
 “Aggregate Equity Commitment Amount” means $200,000,000 in aggregate Equity Securities
valued at the Acquired Equity Securities Per Share Purchase Price. 
 “Agreement” has the meaning
set forth in the Preamble. 
 “Alternative Restructuring Proposal” means any inquiry, proposal,
offer, bid, term sheet, or discussion with respect to a new money investment, restructuring, reorganization, merger, acquisition, consolidation, dissolution, debt investment, equity investment, liquidation, tender offer, recapitalization, plan of
reorganization, share exchange, business combination, or similar transaction involving any one or more Company Parties or the debt, equity, or other interests in any one or more Company Parties that is an alternative to one or more of the
Restructuring Transactions. 
 “Ancillary Proceedings” has the meaning set forth in the
Restructuring Support and Lock-Up Agreement. 
 “Antitrust
Authorities” means the United States Federal Trade Commission, the Antitrust Division of the United States Department of Justice, the attorneys general of the several states of the United States and any other Governmental Entity,
whether domestic or foreign, having jurisdiction pursuant to the Antitrust Laws, and “Antitrust Authority” means any of them. 

“Antitrust Laws” means the Sherman Act, the Clayton Act, the HSR Act, the Federal Trade Commission
Act, and any other Law, whether domestic or foreign, governing agreements in restraint of trade, monopolization, pre-merger notification, the lessening of competition through merger or acquisition or
anti-competitive conduct, and any foreign investment Laws. 
 “Applicable Consent” has the meaning
set forth in Section 3.7. 

  
 -3- 

 “Applicable Taxing Authorities” means any Governmental
Entity having the authority and jurisdiction to tax the Company or any other Debtor. 
 “Automatic Shelf
Registration Statement” means an “automatic shelf registration statement” as defined in Rule 405 promulgated under the Securities Act. 

“Available Debt Securities” means the Acquired Debt Securities that any Debt Commitment Party fails to
purchase as a result of a Debt Commitment Party Default by such Debt Commitment Party. 
 “Available Equity
Securities” means the Acquired Equity Securities that any Equity Commitment Party fails to purchase as a result of an Equity Commitment Party Default by such Equity Commitment Party. 

“Bankruptcy Code” means Title 11 of the United States Code, 11 U.S.C.
§§ 101-1532, as amended from time to time. 
 “Bankruptcy
Court” has the meaning ascribed to it in the Restructuring Support and Lock-Up Agreement. 

“Bankruptcy Rules” means the Federal Rules of Bankruptcy Procedure as promulgated by the United States
Supreme Court under section 2075 of title 28 of the United States Code, 28 U.S.C. § 2075, as applicable to the Chapter 11 Cases and the general, local, and chambers rules of the Bankruptcy Court. 

“Board Governance Term Sheet” means the term sheet attached to this Agreement as Exhibit B, as
may be modified in a manner that is reasonably acceptable to the Required Commitment Parties and the Company. 

“Business Day” means any day, other than a Saturday, Sunday or legal holiday, as defined in Bankruptcy
Rule 9006(a). 
 “Cash Collateral Orders” has the meaning set forth in the Restructuring
Support and Lock-Up Agreement. 
 “Centerbridge” means
Centerbridge Credit Partners, L.P. and its Affiliates that are signatories hereto. 
 “Centerbridge Debt Rights
Offering Reduction Percentage” means an amount equal to (a) the HCB Debt Rights Offering Backstop Percentage multiplied by (b) fifty percent (50%). 

“Chapter 11 Cases” has the meaning set forth in the Recitals. 

“Charter Contracts” means all of the charter contracts to which any of the Company Parties is party.

 “Closing” has the meaning set forth in Section 2.5(a). 

  
 -4- 

 “Closing Date” has the meaning set forth in
Section 2.5(a). 
 “Closing Fee” has the meaning set forth in
Section 9.1(b). 
 “CoCom” has the meaning ascribed to it in the
Restructuring Support and Lock-Up Agreement. 
 “Collateral
Agent” means the collateral agent for the New Secured Notes as set forth in the Indenture. 

“Commitment Fee” has the meaning set forth in Section 9.1(a). 

“Commitment Party” means each Debt Commitment Party and Equity Commitment Party. 

“Commitment Party Agreements” means this Agreement, the Registration Rights Agreement, the Escrow
Agreement, and all other documents and agreements contemplated by this Agreement to which a Commitment Party is or will be a party. 

“Commitment Party Approved Person” means any Person selected by the Company to participate in a Cover
Transaction who, prior to the Cover Transaction, has been approved, in writing, by the Original Commitment Parties; provided that (a) any request by the Company for such approval may not be unreasonably withheld, conditioned or delayed and
(b) in no event shall any Original Commitment Party have any approval rights if such Person is also a Defaulting Party. 

“Commitment Schedule” means Schedule 1 to this Agreement, as may be amended,
supplemented or otherwise modified from time to time in accordance with this Agreement. 
 “Company”
has the meaning set forth in the Preamble. 
 “Company Agent” means Prime Clerk LLC or another agent
appointed by the Company and reasonably satisfactory to the Required Commitment Parties. 
 “Company Disqualified
Institutions” has the meaning set forth in Section 2.6(a). 
 “Company
Parties” has the meaning set forth in the Restructuring Support and Lock-Up Agreement. 

“Company SEC Documents” means all of the reports, schedules, forms, statements and other documents
(including exhibits and other information incorporated therein) filed with the SEC by the Company and its Subsidiaries. 

“Confirmation Order” means an Order of the Bankruptcy Court confirming the Plan pursuant to section
1129 of the Bankruptcy Code and approving this Agreement. 

  
 -5- 

 “Confirmation Order Milestone” has the meaning set forth
in Section 6.1(a)(iv). 
 “Confirmation Order Milestone Date” has the
meaning set forth in Section 6.1(a)(iv). 
 “Consenting Lender” has the
meaning set forth in the Restructuring Support and Lock-Up Agreement. 

“Consenting Noteholder” has the meaning set forth in the Restructuring Support and Lock-Up Agreement. 
 “Consenting Stakeholders” has the meaning
set forth in the Restructuring Support and Lock-Up Agreement. 

“Contract” means any agreement, contract or instrument, including any loan, note, bond, mortgage,
indenture, guarantee, deed of trust, license, franchise, commitment, lease, franchise agreement, letter of intent, memorandum of understanding or other obligation, and any amendments thereto, whether written or oral, but excluding the Plan. 

“Control” or “Controlled” means, with respect to any Person, the possession,
directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities or by contract or agency or otherwise. 

“Cover Transaction” has the meaning set forth in Section 2.3(b). 

“Cover Transaction Period” has the meaning set forth in Section 2.3(b). 

“Credit Agreement” has the meaning set forth in the Restructuring Support and Lock-Up Agreement. 
 “Credit Facility Documents” means
(A) new and/or amended Credit Agreements effectuating the treatment set forth in the Credit Facility Term Sheet; and (B) new and/or amended guarantees and security documents in accordance with the Credit Facility Term Sheet. 

“Credit Facility Term Sheet” has the meaning set forth in the Restructuring Support and Lock-Up Agreement. 
 “Creditor Equity Rights Offering” means the
offering of Equity Subscription Rights to certain eligible holders of General Unsecured Claims under certain circumstances set forth in the Restructuring Term Sheet and the Plan for $25,000,000 in aggregate Equity Securities valued at the Acquired
Equity Securities Per Share Purchase Price in connection with the Restructuring Transactions substantially on the terms reflected in the Restructuring Support and Lock-Up Agreement, this Agreement, the Plan
and the Rights Offering Procedures. 

  
 -6- 

 “Creditor Equity Rights Offering Securities” means the
Equity Securities that may be purchased upon the exercise of rights offered pursuant to and in accordance with the Rights Offering Procedures in the Creditor Equity Rights Offering. 

“Creditor Equity Subscription Amount” means the aggregate purchase price of Creditor Equity Rights
Offering Securities purchased pursuant to and in accordance with the Rights Offering Procedures in the Creditor Equity Rights Offering. 

“Debt Commitment” means, as to each Debt Commitment Party, the obligation to purchase New Secured
Notes in an amount equal to its Debt Commitment Funding Amount. 
 “Debt Commitment Funding Amount”
means for each Debt Commitment Party, an amount equal to the Aggregate Debt Commitment Amount multiplied by such Debt Commitment Party’s Debt Commitment Percentage; as such product may be increased pursuant to
Section 2.3(e); provided, however that the Debt Commitment Funding Amount of the Original Commitment Parties and the Select Commitment Parties shall be reduced by an amount equal to such Person’s Debt Rights Offering
Reduction Amount, or as otherwise mutually agreed among the Company, the Original Commitment Parties and the Select Commitment Parties. 

“Debt Commitment Party” means each Person listed on Schedule 1 as a “Debt Commitment
Party” and includes any Ultimate Purchaser of such Debt Commitment Party’s Debt Commitment pursuant to Section 2.6(a). 

“Debt Commitment Party Default” means the failure by any Debt Commitment Party to fulfill its
obligations under Section 2.1(b), to the extent such failure occurs after all conditions set forth in Article VI that must be met prior to Closing have been met or waived and the Company has
confirmed in writing that it is ready to perform all actions it is required to perform at the Closing. 
 “Debt
Commitment Party Replacement” has the meaning set forth in Section 2.3(b). 

“Debt Commitment Party Replacement Period” has the meaning set forth in
Section 2.3(b). 
 “Debt Commitment Percentage” means, with respect to a
Debt Commitment Party, the percentage initially set forth opposite the name of such Debt Commitment Party under the heading “Debt Commitment Percentage” in Schedule 1 attached hereto as such Schedule 1 may be updated by
written notice from the Required Commitment Parties to the Company pursuant to Section 2.6(a) hereof. 

“Debt Deposit Amount” means for each Debt Commitment Party, an amount equal to ten percent (10%) of
such Debt Commitment Party’s Debt Commitment Percentage multiplied by the Aggregate Debt Commitment Amount. 

“Debt Replacing Commitment Parties” has the meaning set forth in
Section 2.3(b). 

  
 -7- 

 “Debt Rights Offering” means the offering of Debt
Subscription Rights to certain eligible holders of General Unsecured Claims under certain circumstances set forth in the Restructuring Term Sheet and the Plan for $85,000,000 in aggregate principal amount of Debt Rights Offering Securities in
connection with the Restructuring Transactions substantially on the terms reflected in the Restructuring Support and Lock-Up Agreement, this Agreement, the Plan and the Rights Offering Procedures. 

“Debt Rights Offering Reduction Amount” means (a) for Hemen, an amount equal to (i) the Debt
Subscription Amount multiplied by (ii) the Hemen Debt Rights Offering Reduction Percentage, (b) for Centerbridge, an amount equal to (i) the Debt Subscription Amount multiplied by (ii) the Centerbridge Debt Rights Offering
Reduction Percentage and (c) for each Select Commitment Party, an amount equal to (i) the Debt Subscription Amount multiplied by (ii) such Select Commitment Party’s SCP Debt Rights Offering Reduction Percentage. 

“Debt Rights Offering Securities” means the New Secured Notes that may be purchased upon the exercise
of rights offered pursuant to and in accordance with the Rights Offering Procedures in the Debt Rights Offering. 

“Debt Subscription Amount” means the aggregate principal amount of Debt Rights Offering Securities
purchased pursuant to and in accordance with the Rights Offering Procedures in the Debt Rights Offering. 
 “Debt
Subscription Rights” means the subscription rights to purchase Debt Rights Offering Securities. 

“Debtors” means the “Filing Entities” as defined in the Restructuring Support and Lock-Up Agreement. 
 “Defaulting Party” means (a) in respect
of a Debt Commitment Party Default that is continuing, the applicable defaulting Debt Commitment Party and (b) in respect of an Equity Commitment Party Default that is continuing, the applicable defaulting Equity Commitment Party. 

“Definitive Documents” means (a) the Definitive Documents (as defined in the Restructuring
Support and Lock-Up Agreement), (b) the Restructuring Support and Lock-Up Agreement, (c) the Registration Rights Agreement, (d) the organizational documents of New
Seadrill, IHCo, NSNCo, other members of the NSNCo Group and RigCo, (e) the New Secured Notes, (f) the Rights Offering Documents, (h) any employment agreement of any member of the Company’s executive management (comprising those
employees in relation to whom disclosure is made in the Company’s annual report on Form 20-F), as such list may change from time to time between the date hereof and the Closing, (g) the EIP if the
EIP has been adopted by the managers or other governing body of New Seadrill as of the Closing Date, and (h) any other agreements or supplements referred to in the foregoing. 

“Deposit Credit Amount” has the meaning set forth in Section 2.4(b)(iii).

 “Depositary” has the meaning set forth in the Indenture. 

  
 -8- 

 “Disclosed” means disclosed in a manner that is
reasonably apparent on the face of a document which is disclosed or disclosed fairly and accurately and with sufficient particularity to enable the Commitment Parties to reasonably assess the matter, fact or circumstance disclosed and
“Disclosure” shall be construed accordingly. 
 “Disclosure Schedule” means the
disclosure schedule (together with all attachments and appendices thereto) delivered by the Company Parties to the Commitment Parties on the date hereof, as may be supplemented or amended in writing delivered by the Company Parties to the Commitment
Parties from time to time after the date hereof and until the Effective Date for events occurring or first known after the date hereof. 

“Disclosure Statement” has the meaning set forth in the Restructuring Support and Lock-Up Agreement. 
 “Disclosure Statement Order” means an Order,
in form and substance reasonably acceptable to the Company and the Required Commitment Parties, approving, among other things, (a) the Disclosure Statement, (b) the solicitation procedures with respect to the Plan, and (c) the Rights
Offering Procedures. 
 “DTC” means The Depository Trust Company. 

“DTC Agreement” means a letter of representations, dated on or before the Closing Date, between NSNCo
and the Depositary. 
 “Effective Date” means the effective date of the Plan. 

“EIP” has the meaning set forth in Section 3.4(a). 

“Environmental Laws” means all applicable laws (including common law), rules, regulations, codes,
ordinances, orders in council, Orders, treaties, conventions, protocols, directives or legally binding agreements promulgated or entered into by or with any Governmental Entity, relating in any way to the environment, preservation or reclamation of
natural resources, the generation, management, Release of, or exposure to, any Hazardous Material, or to health and safety (solely to the extent related to the environment or Hazardous Materials). 

“Equity Commitment” means, as to each Equity Commitment Party, the obligation to purchase Equity
Securities in an amount equal to its Equity Commitment Funding Amount. 
 “Equity Commitment Funding
Amount” means, as to each Equity Commitment Party, an amount equal to (a) the Aggregate Equity Commitment Amount multiplied by (b) such Equity Commitment Party’s Equity Commitment Percentage; as such product may be
increased pursuant to Section 2.3(d); provided, however, that the Equity Commitment Funding Amount of Hemen shall be reduced by an amount equal to the Creditor Equity Subscription Amount. 

  
 -9- 

 “Equity Commitment Party” means each Person listed on
Schedule 1 as an “Equity Commitment Party” and includes any Ultimate Purchaser of such Equity Commitment Party’s Equity Commitment pursuant to Section 2.6(a). 

“Equity Commitment Party Default” means the failure by any Equity Commitment Party to fulfill its
obligations under Section 2.1(a), to the extent such failure occurs after all conditions set forth in Article VI that must be met prior to Closing have been met or waived and the Company has
confirmed in writing that it is ready to perform all actions it is required to perform at the Closing. 
 “Equity
Commitment Party Replacement” has the meaning set forth in Section 2.3(a). 

“Equity Commitment Party Replacement Period” has the meaning set forth in
Section 2.3(a). 
 “Equity Commitment Percentage” means, with respect to
an Equity Commitment Party, the percentage initially set forth opposite the name of such Equity Commitment Party under the heading “Equity Commitment Percentage” in Schedule 1 attached hereto as such Schedule 1 may be updated
by written notice from the Required Commitment Parties to the Company pursuant to Section 2.6(a) hereof. 

“Equity Deposit Amount” means for each Equity Commitment Party, an amount equal to ten percent (10%)
of such Equity Commitment Party’s Equity Commitment Percentage multiplied by the Aggregate Equity Commitment Amount. 

“Equity Fee Nominal Amount” has the meaning set forth in Section 2.5(e).

 “Equity Pro Rata Share” means an amount equal to the total Equity Commitment of an Equity
Commitment Party that has not triggered an Equity Commitment Party Default divided by the total Equity Commitment of all Equity Commitment Parties that have not triggered an Equity Commitment Party Default. 

“Equity Purchaser Cash Fee” has the meaning set forth in
Section 9.2(a). 
 “Equity Replacing Commitment Parties” has the meaning
set forth in Section 2.3(a). 
 “Equity Securities” means all common
shares in New Seadrill or the Company (as applicable). 
 “Equity Subscription Rights” means
the subscription rights to purchase Creditor Equity Rights Offering Securities in the Creditor Equity Rights Offering. 

“Escrow Account Funding Date” has the meaning set forth in Section 2.4(c).

 “Escrow Account” means an escrow account established under the Escrow Agreement. 

  
 -10- 

 “Escrow Agent” means Citibank National Association. 

“Escrow Agreement” means the escrow agreement between the Commitment Parties, the Company and Escrow
Agent, dated as of September 11, 2017. 
 “Escrow Property” has the meaning set forth in the
Escrow Agreement. 
 “Event” means any event, development, occurrence, circumstance, effect,
condition, result, state of facts or change, which, for the avoidance of doubt, may include (a) a change in global, national or regional political conditions (including hostilities, acts of war, sabotage, terrorism (including cyber terrorism)
or military actions, or any escalation or material worsening of any such actions or declarations of national emergencies), (b) a change in the general global, national or regional financial or economic conditions, economies, securities (including
any suspension or material limitation in trading of securities on the Oslo Stock Exchange or the New York Stock Exchange), commodities (including the price of oil) or capital or financial markets (including a material disruption of commercial
banking activities or settlement systems or change in exchange controls), including, in each case, any material worsening thereof, (c) any force majeure events, “acts of God” or environmental disasters, and (d) termination or
cancellation of Contracts, including one or more Charter Contracts, to which a Company Party is party, in the case of (a) to (c), affecting the industries, regions or markets in which the Company or any of the Debtors operates. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Expenses” means all properly incurred reasonable and documented out-of-pocket fees, costs and expenses incurred by each of the Commitment Parties, their Affiliates and each of their attorneys, accountants, advisors, financial advisors, consultants and other professionals
in connection with their due diligence, approval, documentation, and purchase of the New Secured Notes, the Equity Securities and the related Restructuring Transactions, whether incurred before or after the date hereof, including without limitation
(a) the preparation, negotiation and implementation of this Agreement or the Restructuring Support and Lock-Up Agreement (including any amendment or modification hereto) and any related documents and
(b) the preparation, negotiation and implementation of any agreement contemplated by the Restructuring Transactions. Expenses shall include, without limitation, reasonable and properly incurred (i) attorneys’ fees and legal expenses
(provided that legal fees shall be limited to the reasonable fees and disbursements of one set of counsel for each Original Commitment Party, the Select Commitment Parties and the Additional Commitment Parties (based in both New York and London)
and, in addition, (A) one local counsel for each Original Commitment Party, the Select Commitment Parties and the Additional Commitment Parties in each appropriate jurisdiction, (B) to the extent required by the subject matter, one
specialist counsel for each Original Commitment Party, the Select Commitment Parties and the Additional Commitment Parties for each area of law in each appropriate jurisdiction), (ii) fees and expenses of one financial advisor of the Select
Commitment Parties (which, for the avoidance of doubt, shall be Moelis & Company, whose fees and expenses shall be payable in accordance with its engagement letter with the Company) and fees and expenses of one financial advisor of the
Original Commitment Parties (which, for the avoidance of doubt, shall be Goldman Sachs, whose fees and expenses shall be payable in accordance with its engagement letter with the 

  
 -11- 

 
Company) and (iii) expenses related to the successful enforcement of any of the rights and remedies of the Commitment Parties under this Agreement or the Restructuring Support and Lock-Up Agreement (except to the extent such expenses arise from a breach of this Agreement by one or more of the Commitment Parties), in each case, regardless of whether the New Secured Notes or Equity Securities
are issued. 
 “EY Paper” means the tax and hive down and steps paper dated September 5, 2017,
as prepared by Ernst & Young LLP and as amended, supplemented or otherwise modified from time to time. 

“Filing Party” has the meaning set forth in Section 5.13(b). 

“Final Order” means an Order of the Bankruptcy Court or other court of competent jurisdiction with
respect to the relevant subject matter that has not been reversed, modified or amended, that is not stayed, and as to which the time to appeal or seek certiorari has expired and no appeal or petition for certiorari has been timely taken, or as to
which any appeal that has been taken or any petition for certiorari that has been or may be filed has been resolved by the highest court to which the Order could be appealed or from which certiorari could be sought or the new trial, reargument or
rehearing shall have been denied, resulted in no modification of such Order or has otherwise been dismissed with prejudice. 

“First Day Pleadings” has the meaning set forth in the Restructuring Support and Lock-Up Agreement. 
 “Full Transfer” has the meaning set forth in
Section 2.6(a). 
 “Funding Notice” has the meaning set forth in
Section 2.4(b). 
 “Funding Notice Date” has the meaning set forth in
Section 2.4(b). 
 “GAAP” means United States generally accepted
accounting principles. 
 “General Unsecured Claims” has the meaning set forth in the Restructuring
Support and Lock-Up Agreement. 
 “Governmental Entity”
means any instrumentality, subdivision, court, administrative agency, commission, official or other governmental authority of the United States or any other country or any state, municipality, locality, tribe or other government or political
subdivision thereof, or any quasi-governmental or private body exercising any administrative, executive, judicial, legislative, police, regulatory, taxing, importing or other governmental or quasi-governmental body, including, for the avoidance of
doubt, the Bankruptcy Court. 
 “Granted Equity Securities” has the meaning set forth in the
Recitals. 
 “Group” means, prior to the Closing Date, the Company and its Subsidiaries, and after
the Closing Date, New Seadrill or the Company (as applicable) and its Subsidiaries. 

  
 -12- 

 “Hazardous Materials” means all pollutants, contaminants,
wastes, chemicals, materials, substances and constituents that are regulated due to their hazardous, toxic, dangerous or deleterious properties or characteristics, including explosive or radioactive substances or petroleum or petroleum distillates,
asbestos or asbestos containing materials, polychlorinated biphenyls or radon gas, of any nature subject to regulation or which can give rise to liability under any Environmental Law. 

“HCB Debt Rights Offering Backstop Percentage” means an amount equal to 22.442 divided by 85. 

“Hemen” means Hemen Investments Limited. 

“Hemen Debt Rights Offering Reduction Percentage” means an amount equal to (a) the HCB Debt
Rights Offering Backstop Percentage multiplied by (b) fifty percent (50%). 
 “HSR Act” means
the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended from time to time. 
 “IHCo”
has the meaning set forth in the Recitals. 
 “Implementation Mechanisms” has the meaning set forth
in the Restructuring Support and Lock-Up Agreement. 
 “Incremental
Expenses” has the meaning set forth in Section 9.4(d). 
 “Indemnified
Claim” has the meaning set forth in Section 7.2. 
 “Indemnified
Persons” has the meaning set forth in Section 7.1. 
 “Indemnifying
Party” has the meaning set forth in Section 7.1. 

“Indenture” means an indenture for the New Secured Notes in accordance with the New Secured Notes Term
Sheet. 
 “Intellectual Property Rights” has the meaning set forth in
Section 3.16. 
 “Investment Agreement Effective Date” has the meaning set
forth in Section 1.3. 
 “Joinder Agreement” has the meaning set forth in
the Preamble. 
 “Joint Filing Party” has the meaning set forth in
Section 5.13(c). 
 “Knowledge of the Company” means the actual knowledge,
after reasonable inquiry of their direct reports, of the chief executive officer, chief financial officer, chief operating officer, general counsel, and the board of directors of the Company. As used herein, “actual knowledge” means
information that is personally known by the listed individual(s). 

  
 -13- 

 “Law” means any law (statutory or common), statute,
regulation, rule, code or ordinance enacted, adopted, issued or promulgated by any Governmental Entity. 
 “Legal
Proceedings” has the meaning set forth in Section 3.14. 

“Legend” has the meaning set forth in Section 5.12. 

“Lien” means any lien, adverse claim, charge, option, right of first refusal, servitude, security
interest, mortgage, pledge, deed of trust, easement, encumbrance, restriction on transfer, conditional sale or other title retention agreement, defect in title, lien or judicial lien as defined in sections 101(36) and (37) of the Bankruptcy
Code or other restrictions of a similar kind. 
 “Losses” has the meaning set forth in
Section 7.1. 
 “Material Adverse Effect” means one or more Events or a
series of Events that taken alone or together: 
 (a) has a material adverse effect on the Company Parties,
taken as a whole, that prevents the Company Parties from implementing the Restructuring Transactions; or 

(b) has a material adverse effect on, or is reasonably likely to have a material adverse effect on, the
business, assets, properties, results of operation or financial condition of the Company Parties taken as a whole, at any time during the period starting on the date hereof and ending 18 months immediately following the Outside Date, 

other than the following Events, which are: 

(a) a breach of any financing arrangement (i) which has been waived under the Restructuring Support and Lock-Up Agreement or any other document in each case with the consent of the Required Commitment Parties or (ii) provided that the Company or any other Debtor is taking reasonable steps to remedy the breach, in
respect of which any applicable grace period or cure period is unexpired (including by reason of any extension); 

(b) (i) the failure to meet any projections or estimated revenues or profits or (ii) the occurrence of
exceeding any estimated costs or expenses (but in the case of each of (i) and (ii), not the underlying facts giving rise to such variance unless such facts are otherwise excluded pursuant to a separate clause contained in this definition); 

(c) any enforcement action which has been stayed, suspended, or dismissed; 

(d) any litigation or similar action against any Company Party which arises from or relates to the
Restructuring Transactions with respect to the Company Parties’ capital structure and is being defended by a Company Party in good faith; 

(e) the commencement or pendency of any Scheme of Arrangement, any Chapter 11 Case or any Ancillary
Proceedings, if any, or any other aspect of the Implementation Mechanisms in accordance with the Restructuring Support and Lock-Up Agreement; 

  
 -14- 

 (f) the execution, announcement or performance of this Agreement
or other Definitive Documents or the transactions contemplated hereby or thereby (including any act or omission of the Company or any other Debtor expressly required or prohibited, as applicable, by this Agreement or consented to or required by the
Required Commitment Parties in writing or any other act or omission of any Commitment Party); 
 (g) the
departure of officers or directors of the Company or any other Debtor not in contravention of the terms and conditions of this Agreement (but not the underlying facts giving rise to such departure unless such facts are otherwise excluded pursuant to
the clauses contained in this definition); 
 (h) any matters known or expressly Disclosed in (i) the
Disclosure Statement as delivered on the date hereof or subsequently as such matters may be expressly agreed by the Required Commitment Parties; or (ii) Company Disclosure Schedules as delivered on the date hereof; 

(i) any material changes after the date hereof in applicable Law or GAAP or enforcement thereof; or 

(j) the occurrence of a Debt Commitment Party Default. 

“Material Contracts” means all “plans of acquisition, reorganization, arrangement, liquidation or
succession” and “material contracts” (as such terms are defined in Items 601(b)(2) and 601(b)(10) of Regulation S-K under the Exchange Act) to which any Debtor is a party. 

“Money Laundering Laws” has the meaning set forth in Section 3.23. 

“New Seadrill” means a new Bermuda holding company established by the Debtors for the purpose of
carrying out certain transactions under the Plan with respect to the Company. 
 “New Seadrill Bye-laws” means the bye-laws of New Seadrill, which shall become effective as of the Effective Date, and which shall be consistent with the terms set forth in the
Plan, and otherwise be in a form and substance reasonably satisfactory to the Required Commitment Parties and the Company. 

“New Seadrill Memorandum of Association” means the memorandum of association of New Seadrill as in
effect on the Effective Date, which shall be consistent with the terms set forth in the Plan, and otherwise be in a form and substance reasonably satisfactory to the Required Commitment Parties and the Company. 

“New Seadrill Organizational Documents” means, collectively, the New Seadrill Bye-laws and New Seadrill Memorandum of Association. 

  
 -15- 

 “New Secured Notes” has the meaning set forth in the
Recitals. 
 “New Secured Notes Term Sheet” has the meaning set forth in the Restructuring Support
and Lock-Up Agreement. 

“Non-Applicable Consent” has the meaning set forth in
Section 3.7. 
 “Non-Consolidated
Entities” has the meaning set forth in the Restructuring Support and Lock-Up Agreement. 

“NSN Collateral” has the meaning set forth in the New Secured Notes Term Sheet. 

“NSN Percentage” means, for each NSN Purchaser, an amount equal to (a) the aggregate principal
amount of New Secured Notes purchased by such NSN Purchaser on the Closing Date divided by (b) the Aggregate Debt Commitment Amount. 

“NSN Purchasers” means the Debt Commitment Parties and the Rights Offering Participants that purchase
New Secured Notes on the Closing Date. 
 “NSNCo” has the meaning set forth in the Recitals. 

“NSNCo Group” means NSNCo and its Subsidiaries. 

“NSNCo Organizational Documents” means the memorandum of association and bye-laws of NSNCo, each of which shall be in a form and substance reasonably satisfactory to the Required Commitment Parties. 

“OC Expense Reimbursement” has the meaning set forth in Section 9.4(a). 

“Offering Memorandum” means a customary private offering memorandum with respect to resales of New
Secured Notes pursuant to Rule 144A and Regulation S containing all customary information of the type and form that are customarily included in private placements of high-yield debt securities pursuant to Rule 144A (including information required by
Regulation S-K and Regulation S-X under the Securities Act, but excluding, for the avoidance of doubt, any information of the type required by Rule 3-09, Rule 3-10 (other than a customary summary of such information for a Rule 144A offering) or Rule 3-16 of Regulation S-X or separate consolidating financial statements in respect of the Subsidiaries, any compensation discussion and analysis required by Item 402 of Regulations S-K or
information regarding executive compensation and other exceptions customary for a Rule 144A offering) and otherwise substantially consistent with (other than disclosures relating to the New Secured Notes) the Resale Registration Statement.  
 “Order” means any judgment, order, award,
injunction, writ, permit, license or decree of any Governmental Entity or arbitrator of applicable jurisdiction. 

“Original Commitment Parties” means Hemen and Centerbridge. 

  
 -16- 

 “Outside Date” has the meaning set forth in
Section 6.1(a)(v). 
 “Party” has the meaning set forth in the Preamble.

 “Permitted Liens” means (a) Liens for Taxes that (i) are not yet delinquent,
(ii) the nonpayment of which in the aggregate would not reasonably be expected to have a Material Adverse Effect or (iii) are being contested in good faith by appropriate proceedings and for which adequate reserves have been made with
respect thereto; (b) landlord’s, operator’s, vendors’, carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other similar Liens for labor, materials or supplies or other like Liens
arising by operation of law in the ordinary course of business or incidental thereto, including any liens arising from the financing of the Company Parties’ assets for amounts that are not more than sixty (60) days delinquent and that do
not materially detract from the value of, or materially impair the use of, any of the Real Property or personal property of any of the Debtors, or, if for amounts that do materially detract from the value of, or materially impair the use of, any of
the Real Property or personal property of any of the Debtors, if such Lien is being contested in good faith by appropriate proceedings and for which adequate reserves have been made with respect thereto; (c) zoning, building codes and other
land use Laws regulating the use or occupancy of any Real Property or the activities conducted thereon that are imposed by any Governmental Entity having jurisdiction over such Real Property; provided that no such zoning, building codes and
other land use Laws prohibit the use or occupancy of such Real Property; (d) easements, covenants, conditions, minor encroachments, restrictions on transfer and other similar matters affecting title to any Real Property (including any title
retention agreement) and other title defects and encumbrances that do not or would not materially impair the ownership, use or occupancy of such Real Property or the operation of the Debtors’ business; (e) Liens granted under any
Contracts, in each case, to the extent the same are ordinary and customary in the offshore oil field services business and do not or would not materially impair the ownership, use or occupancy of any Real Property or the operation of the
Debtors’ business and which are for claims not more than sixty (60) days delinquent or, if such claim does materially impair such ownership, use, occupancy or operation and are for obligations that are more than sixty (60) days
delinquent, are being contested in good faith by appropriate proceedings and for which adequate reserves have been made with respect thereto; (f) from and after the occurrence of the Effective Date, Liens granted in connection with the Credit
Facility Documents; (g) mortgages on a lessor’s interest in a lease or sublease; (h) Liens that, pursuant to the Plan and the Confirmation Order will be discharged and released on the Effective Date; and (i) Liens granted in
favor of the holders of the New Secured Notes under the Indenture and any related security, collateral, pledge or similar agreements related thereto. 

“Person” means an individual, firm, corporation (including any
non-profit corporation), partnership, limited liability company, joint venture, association, trust, Governmental Entity or other entity or organization. 

“Petition Date” has the meaning set forth in the Recitals. 

“Plan” has the meaning set forth in the Restructuring Support and
Lock-Up Agreement and includes all exhibits, supplements, appendices, and schedules thereto. 

  
 -17- 

 “Plan Supplement” means the compilation of documents and
forms of documents, schedules, and exhibits to the Plan (as amended, supplemented, or modified from time to time), which at all times shall be consistent with the terms of the Restructuring Support and Lock-Up
Agreement and this Agreement and otherwise be in a form and substance reasonably satisfactory to the Required Commitment Parties. 

“Pre-Closing Period” has the meaning set forth in
Section 5.1(a). 
 “Pro Rata Share” means an amount equal to the total
Debt Commitment of a Debt Commitment Party that has not triggered a Debt Commitment Party Default divided by the total Debt Commitment of all Debt Commitment Parties that have not triggered a Debt Commitment Party Default. 

“Prospectus” means the prospectus included in a Registration Statement (including a prospectus that
includes any information previously omitted from a prospectus filed as part of an effective Registration Statement in reliance upon Rule 430A promulgated under the Securities Act), all amendments and supplements to the Prospectus, including
post-effective amendments, all material incorporated by reference or deemed to be incorporated by reference in such Prospectus and any Issuer Free Writing Prospectus (as defined in Rule 433 promulgated under the Securities Act). 

“Real Property” means, collectively, all right, title and interest (including any leasehold estate) in
and to any and all parcels of or interests in real property owned in fee or leased by any of the Debtors, together with, in each case, all easements, hereditaments and appurtenances relating thereto, all improvements and appurtenant fixtures
incidental to the ownership or lease thereof. 
 “Registration Rights Agreement” has the meaning set
forth in Section 5.10. 
 “Registration Statement” means a registration
statement of the Company or New Seadrill filed with or to be filed with the SEC under the Securities Act and other applicable law, including an Automatic Shelf Registration Statement, and including any Prospectus, amendments and supplements to each
such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference in such
registration statement.  
 “Registration Statement
Effectiveness” has the meaning set forth in Section 5.2(c). 

“Registration Statement Filing Date” has the meaning set forth in
Section 5.2(b). 
 “Related Parties” means in relation to a Person, its
Affiliates and each of their respective current and former directors, managers, officers, equity holders (regardless of whether such interests are held directly or indirectly), predecessors, successors, assigns, subsidiaries, partners, limited
partners, general partners, principals, members, employees, agents, advisory board members, financial advisors, attorneys, accountants, investment bankers, consultants, representatives, and other professionals. 

  
 -18- 

 “Release” means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing, dispersing or migrating. “Released” has a correlative meaning. 

“Representatives” means, with respect to any Person, such Person’s directors, officers, members,
partners, managers, employees, agents, investment bankers, attorneys, accountants, advisors and other representatives. 

“Required Commitment Parties” means Commitment Parties holding at least 50.1% in principal amount of
the commitments to purchase the New Secured Notes held by all such Commitment Parties at such time; provided that at all times, each of the Original Commitment Parties shall be part of the “Required Commitment Parties”; provided, further,
that each Select Commitment Party and each Additional Commitment Party shall be part of the “Required Commitment Parties” with respect to (i) material modifications to this Agreement, the Restructuring Support and Lock-Up Agreement and the exhibits to each such document and the terms of any other Definitive Documents to the extent such modifications are adverse to such Select Commitment Party or Additional Commitment Party
and (ii) any economic modifications to this Agreement, the Restructuring Support and Lock-Up Agreement and the exhibits to each such document and the terms of any other Definitive Documents to the extent
such economic modifications are adverse to such Select Commitment Party or Additional Commitment Party, without regard to materiality; provided, however, that notwithstanding the foregoing, in no event will any Commitment Party be a Required
Commitment Party at any point in time that such Person is also a Defaulting Party. 
 “Required Consenting
Lenders” has the meaning set forth in the Restructuring Support and Lock-Up Agreement. 

“Resale Registration Statement” means a Registration Statement for the purpose of resales of Acquired
Equity Securities, Granted Equity Securities and the issued Creditor Equity Rights Offering Securities (if any) by the holders thereof. 

“Restructuring Support and Lock-Up Agreement” has the meaning
set forth in the Recitals. 
 “Restructuring Term Sheet” has the meaning set forth in the Recitals.

 “Restructuring Transactions” means, collectively, the transactions contemplated by the
Restructuring Support and Lock-Up Agreement, this Agreement and the Plan. 

“RigCo” means, the new intermediate holding company to be put in place as a direct wholly owned
subsidiary of IHCo. 
 “Rights Offering Documents” means the Rights Offering Procedures and the
applicable Subscription Agreement, Beneficial Holder, Subscription Form, Master Subscription Form and Eligible Holder Cover Letter, which shall be in a form and substance reasonably satisfactory to the Required Commitment Parties with respect to
each of the Rights Offerings and as such terms are defined in the applicable Rights Offerings Procedures. 

  
 -19- 

 “Rights Offerings” means (i) the Debt Rights
Offering and (ii) the Creditor Equity Rights Offering. 
 “Rights Offering Expiration Time”
means the time and the date on which the rights offering subscription forms must be duly delivered to the Company Agent in accordance with the Rights Offering Procedures. 

“Rights Offering Participants” means those participants in the applicable Rights Offering as
determined in accordance with the Restructuring Support and Lock-Up Agreement. 

“Rights Offering Procedures” means the procedures with respect to the applicable Rights Offering that
are approved by the Bankruptcy Court pursuant to the Disclosure Statement Order, which procedures shall be in form and substance substantially as set forth on Exhibit A hereto, as may be modified in a manner that is reasonably acceptable to
the Required Commitment Parties and the Company. 
 “RSA Effective Date” means the “Agreement
Effective Date” as defined in the Restructuring Support and Lock-Up Agreement. 

“Scheme of Arrangement” means has the meaning set forth in the Restructuring Support and Lock-Up Agreement. 
 “SCP Debt Commitment Percentage” means an
amount equal to the sum of the Debt Commitment Percentage for the Select Commitment Parties. 
 “SCP Debt Rights
Offering Backstop Percentage” means an amount equal to 62.558 divided by 85. 
 “SCP Debt Rights
Offering Reduction Percentage” means for each Select Commitment Party, an amount equal to (a) the SCP Debt Rights Offering Backstop Percentage multiplied by (b) (i) such Select Commitment Party’s Debt Commitment
Percentage divided by (ii) the SCP Debt Commitment Percentage. 
 “SCP Expense Reimbursement”
has the meaning set forth in Section 9.4(b). 
 “Seadrill ECA” has the
meaning set forth in the Restructuring Support and Lock-Up Agreement. 

“SEC” means the U.S. Securities and Exchange Commission. 

“Securities Act” means the Securities Act of 1933, as amended. 

“Security Documents” means the agreements and documents pursuant to which any person creates or grants
any security interests, mortgages, encumbrances or Liens as security for the obligations of NSNCo under the New Secured Notes. 

“Select Commitment Parties” means the funds and/or accounts that are managed, advised or sub-advised by each of Aristeia Capital L.L.C., GLG Partners LP, Saba Capital Management LP and Whitebox Advisors, LLC or each such Person’s Affiliate(s) that are signatories hereto. 

  
 -20- 

 “SFL” has the meaning set forth in the Restructuring
Support and Lock-Up Agreement. 
 “Specified Permitted
Transfer” has the meaning set forth in Section 5.8. 
 “Structuring
Fee” has the meaning set forth in Section 9.3. 

“Subsidiary” means, with respect to any Person, any corporation, partnership, joint venture or other
legal entity as to which such Person (either alone or through or together with any other subsidiary), (a) owns, directly or indirectly, more than fifty percent (50%) of the stock or other equity interests, (b) has the power to elect a
majority of the board of directors or similar governing body, or (c) has the power to direct the business and policies. 

“Tax Returns” has the meaning set forth in Section 3.20(a). 

“Taxes” means all taxes, assessments, duties, levies or other similar mandatory governmental charges
paid to a Governmental Entity, including all federal, state, local, foreign and other income, franchise, profits, gross receipts, capital gains, capital stock, transfer, property, sales, use, value-added, occupation, excise, severance, windfall
profits, stamp, payroll, social security, withholding and other taxes, assessments, duties, levies or other mandatory governmental charges paid to a Governmental Entity (whether payable directly or by withholding and whether or not requiring the
filing of a return), all estimated taxes, deficiency assessments, additions to tax, penalties and interest thereon and shall include any liability for such amounts as a result of being a member of a combined, consolidated, unitary or affiliated
group. 
 “Term Sheets” has the meaning set forth in the Restructuring Support and Lock-Up Agreement. 
 “Ticking Fee” has the meaning set forth in
Section 9.2(b). 
 “Ticking Fee Event” has the meaning set forth in
Section 9.2(b). 
 “Ticking Fee Event Date” has the meaning set forth in
Section 9.2(b). 
 “Transaction Agreements” have the meaning set forth in
Section 3.2(a). 
 “Transfer” means to sell, resell, reallocate, transfer,
assign, pledge, hypothecate, participate, donate or otherwise encumber or dispose of, directly or indirectly (including through derivatives, options, swaps, pledges, forward sales or other transactions in which any Person receives the right to own
or acquire any current or future interest in a subscription right, New Secured Note or Equity Security). “Transfer” used as a noun has a correlative meaning. 

“Ultimate Purchaser” has the meaning set forth in Section 2.6(a). 

  
 -21- 

 “Unlegended Securities” has the meaning set forth in
Section 5.11. 
 “Virtual Data Room” means the data room comprising the
actual copies of documents and other information relating to the Company Parties and which the Company made available to the Commitment Parties on-line and enclosed in a CD attached to this Agreement. 

“willful or intentional breach” has the meaning set forth in Section 8.5.

 Section 1.2 Construction . In this Agreement, unless the context otherwise requires: 

(a) references to Articles, Sections, Exhibits and Schedules are references to the articles and sections or subsections of, and
the exhibits and schedules attached to, this Agreement; 
 (b) references in this Agreement to “writing” or
comparable expressions include a reference to a written document transmitted by means of electronic mail in portable document format (pdf), facsimile transmission or comparable means of communication; 

(c) words expressed in the singular number shall include the plural and vice versa; words expressed in the masculine
shall include the feminine and neuter gender and vice versa; 
 (d) the words “hereof,” “herein,”
“hereto” and “hereunder,” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole, including all Exhibits and Schedules attached to this Agreement, and not to any provision of this
Agreement; 
 (e) the term “this Agreement” shall be construed as a reference to this Agreement as the same may
have been, or may from time to time be, amended, modified, varied, novated or supplemented; 
 (f) “include,”
“includes,” and “including” are deemed to be followed by “without limitation” whether or not they are in fact followed by such words; 

(g) references to “day” or “days” are to calendar days; 

(h) references to “the date hereof” means the date of this Agreement; 

(i) unless otherwise specified, references to a statute means such statute as amended from time to time and includes any
successor legislation thereto and any rules or regulations promulgated thereunder in effect from time to time; 
 (j)
references to “dollars” or “$” refer to currency of the United States of America, unless otherwise expressly provided; and 

(k) for the avoidance of doubt, nothing herein is intended to, and nothing herein shall, affect or modify the rights and
obligations, if any, of the Company, the other Company Parties and the Commitment Parties under the Restructuring Support and Lock-Up Agreement. Further, each of the Commitment Parties’ obligations to
fund the Debt Commitment and/or Equity Commitment (as applicable) shall be subject solely to the terms and conditions in this Agreement. 

  
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 Section 1.3 Investment Agreement Effective Date . This Agreement shall
become effective and binding on each of the Parties upon the occurrence of (a) the RSA Effective Date and (b) payment of the Commitment Fee, the Equity Purchaser Cash Fee and the Expense Reimbursement (the “Investment Agreement
Effective Date”). 
 ARTICLE II 

ISSUE AND PURCHASE OF NEW SECURED NOTES AND EQUITY SECURITIES 

Section 2.1 New Money Commitments; Equity Grants. 

(a) Equity Commitment. On the basis of the representations and warranties herein contained and subject to the terms and
conditions herein set forth including any applicable upward adjustment pursuant to Section 2.3, (i) each Equity Commitment Party commits, severally and not jointly, to (x) purchase, at the Closing, an aggregate amount
of Equity Securities at the Acquired Equity Securities Per Share Purchase Price in an amount equal to such Equity Commitment Party’s Equity Commitment Funding Amount and (y) pay to New Seadrill, at the Closing, an amount in cash equal to
such Equity Commitment Party’s Equity Commitment Funding Amount; and (ii) the Company shall ensure that New Seadrill shall, and New Seadrill shall, issue and sell to each Equity Commitment Party, an aggregate amount of Equity Securities
valued at the Acquired Equity Securities Per Share Purchase Price equal to such Equity Commitment Party’s Equity Commitment Funding Amount. The Equity Securities that the Equity Commitment Parties commit to purchase pursuant to this
Section 2.1(a) are referred to as the “Acquired Equity Securities”. It is understood among the Commitment Parties that any acceptable increases or decreases in the Equity Commitment Percentages of
the Equity Commitment Parties shall be shared pro rata among the Equity Commitment Parties; provided that in all circumstances, any such changes to the Equity Commitment Percentage of an Equity Commitment Party shall require the prior written
consent of each Equity Commitment Party and the Company Parties. 
 (b) Debt Commitments. On the basis of the representations
and warranties herein contained and subject to the terms and conditions herein set forth including any applicable upward adjustment pursuant to Section 2.3, (i) each Debt Commitment Party commits, severally and not jointly,
to (x) purchase, at the Closing, an aggregate principal amount of New Secured Notes in an amount equal to such Debt Commitment Party’s Debt Commitment Funding Amount and (y) pay to NSNCo, at the Closing, an amount in cash equal to
such Debt Commitment Party’s Debt Commitment Funding Amount; and (ii) the Company shall ensure that NSNCo shall, and NSNCo shall, issue and sell to each Debt Commitment Party, an aggregate principal amount of New Secured Notes equal to
such Debt Commitment Party’s Debt Commitment Funding Amount. The New Secured Notes that the Debt Commitment Parties commit to purchase pursuant to this Section 2.1(b) are referred to as the “Acquired Debt
Securities”. It is understood among the Commitment Parties that any acceptable increases or decreases in the Debt Commitment Percentages or Debt Rights Offering Reduction Percentages of the Debt Commitment Parties shall

  
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be shared pro rata among the Debt Commitment Parties; provided that in all circumstances, any such changes to the Commitment Percentage or Debt Rights Offering Reduction Percentage of a Debt
Commitment Party shall require the prior written consent of each Debt Commitment Party and the Company. 
 (c) Debt Rights
Offering. On and subject to the terms and conditions hereof and the Restructuring Support and Lock-Up Agreement, the Company shall procure that NSNCo shall, and NSNCo shall, conduct the Debt Rights Offering
pursuant to and in accordance with the Rights Offering Procedures and the Disclosure Statement Order. Each Commitment Party shall not exercise any Debt Subscription Rights offered to such Commitment Party in the Debt Rights Offering on account of
General Unsecured Claims held by such Commitment Party on the RSA Agreement Effective Date; provided that this provision shall not apply to Debt Subscription Rights offered to a Commitment Party on account of General Unsecured Claims acquired after
the RSA Effective Date. 
 (d) Equity Rights Offerings. On and subject to the terms and conditions hereof and the
Restructuring Support and Lock-Up Agreement, the Company shall procure that New Seadrill shall, and New Seadrill shall, conduct the Creditor Equity Rights Offering pursuant to and in accordance with the Rights
Offering Procedures and the Disclosure Statement Order. Each Commitment Party shall not exercise any Equity Subscription Rights offered to such Commitment Party in the Creditor Equity Rights Offering on account of General Unsecured Claims held by
such Commitment Party on the RSA Effective Date; provided that this provision shall not apply to Equity Subscription Rights offered to a Commitment Party on account of General Unsecured Claims acquired after the RSA Agreement Effective Date. 

(e) Equity Grants. In consideration of the Debt Commitments and the purchase of New Secured Notes on the Closing Date by the
Debt Commitment Parties and Rights Offering Participants in the Debt Rights Offering, the Company shall cause New Seadrill to issue the Granted Equity Securities to the purchasers of the New Secured Notes pursuant to the terms and conditions
hereunder and the Debt Rights Offering, after giving effect to the transactions described herein, pro rata based on the amount of New Secured Notes purchased by each Debt Commitment Party and each Rights Offering Participant in the Debt Rights
Offering. For this purpose, the Company shall procure that a part of the Aggregate Debt Commitment Amount equal to the nominal amount of the Granted Equity Securities (the “Granted Equity Nominal Amount”) is applied to pay up
those shares and the aggregate price of the New Secured Notes shall be correspondingly reduced. The Company will procure that New Seadrill contributes an amount equal to the Granted Equity Nominal Amount to NSNCo. 

(f) Rounding of Shares. The number of Equity Securities issued pursuant to the terms and conditions hereof shall be rounded
among the applicable holders solely to avoid fractional shares as the Company shall determine in consultation with the Required Commitment Parties. 

Section 2.2 Applicable Law. The New Secured Notes and the Equity Securities will be issued to the Commitment Parties in
reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act or another available exemption 
 from
registration under the Securities Act and the Disclosure Statement shall include statements to such effect. 

  
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 Section 2.3 Default. 

(a) Upon the occurrence of an Equity Commitment Party Default, each Equity Commitment Party (other than any Defaulting
Party) and its Affiliates shall have the right, but not the obligation, within five (5) Business Days after receipt of written notice from the Company to all Equity Commitment Parties of such Equity Commitment Party Default, which notice shall
be given promptly following the occurrence of such Equity Commitment Party Default and to all Equity Commitment Parties concurrently (such five (5) Business Day period, the “Equity Commitment Party Replacement Period”),
to make arrangements for one or more of the Equity Commitment Parties (other than any Defaulting Party) or their Affiliates, as applicable, to purchase all or any portion of the Available Equity Securities (any such purchase, an “Equity
Commitment Party Replacement”) on the terms and subject to the conditions set forth in this Agreement and in such amounts as may be agreed upon by all of the Equity Commitment Parties (other than any Defaulting Party), or their
Affiliates, as applicable, who have elected to purchase all or any portion of the Available Equity Securities (the “Equity Replacing Commitment Parties”), or, if no such agreement is reached, based upon such Equity Replacing
Commitment Parties Equity Pro Rata Share of the aggregate number of Available Equity Securities. 
 (b) Upon the occurrence
of a Debt Commitment Party Default, each Debt Commitment Party (other than any Defaulting Party) and its Affiliates shall have the right, but not the obligation, within five (5) Business Days after receipt of written notice from the Company to
all Debt Commitment Parties of such Debt Commitment Party Default, which notice shall be given promptly following the occurrence of such Debt Commitment Party Default and to all Debt Commitment Parties concurrently (such five (5) Business Day
period, the “Debt Commitment Party Replacement Period”), to make arrangements for one or more of the Debt Commitment Parties (other than any Defaulting Party) or their Affiliates, as applicable, to purchase all or any portion
of the Available Debt Securities (any such purchase, a “Debt Commitment Party Replacement”) on the terms and subject to the conditions set forth in this Agreement and in such amounts as may be agreed upon by all of the Debt
Commitment Parties (other than any Defaulting Party), or their Affiliates, as applicable, electing to purchase all or any portion of the Available Debt Securities, or, if no such agreement is reached, based upon such Debt Commitment Parties (other
than any Defaulting Party) or their Affiliates (such Debt Commitment Parties or their Affiliates, as applicable, the “Debt Replacing Commitment Parties”) Pro Rata Share of the aggregate number of Available Debt Securities.

 (c) As to any remaining Available Equity Securities that are not purchased pursuant to
Section 2.3(a) or any Available Debt Securities that are not purchased pursuant to Section 2.3(b), the Company may, after giving prior written notice to the Commitment Parties, elect to utilize the
Cover Transaction Period to consummate a Cover Transaction. As used herein, “Cover Transaction” means a circumstance in which the Company arranges for the sale of all or any portion of the Available Equity Securities or the
Available Debt Securities, as applicable, to any Commitment Party Approved Person, on the terms and subject to the conditions set forth in this Agreement, during the Cover Transaction Period, and “Cover Transaction Period”
means the period ending on the later of (i) twelve months after the Petition 

  
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 Date and (ii) the 30th day after, as applicable, (x) the expiration of the five
(5) Business Day period specified in Section 2.3(a) with respect to the Available Equity Securities or Section 2.3(b) with respect to the Available Debt Securities or (y) the date upon
which all conditions set forth in Article VI that must be met prior to the Closing have been met or waived. 

(d) Any Available Equity Securities purchased by an Equity Replacing Commitment Party (and any commitment and applicable
aggregate purchase price associated therewith) shall be included, among other things, in the determination of the Equity Commitment Funding Amount of such Equity Replacing Commitment Party for purposes of Section 2.1(a) and
Section 2.5(e). If an Equity Commitment Party Default occurs, the Outside Date shall be delayed for such Equity Commitment Party Default only to the extent necessary to allow for if applicable, the Equity Commitment Party
Replacement to be completed within the Equity Commitment Party Replacement Period or for a Cover Transaction to be completed. 

(e) Any Available Debt Securities purchased by a Debt Replacing Commitment Party (and any commitment and applicable aggregate
purchase price associated therewith) shall be included, among other things, in the determination of (i) the Debt Commitment Funding Amount of such Debt Replacing Commitment Party for purposes of Section 2.1(b) and
Section 2.5(c) and (ii) the Debt Commitment of such Debt Replacing Commitment Party for purposes of the definition of “Required Commitment Parties.” If a Debt Commitment Party Default occurs, the Outside Date
shall be delayed for such Debt Commitment Party Default only to the extent necessary to allow for if applicable, the Debt Commitment Party Replacement to be completed within the Debt Commitment Party Replacement Period or for a Cover Transaction to
be completed. 
 (f) Nothing in this Agreement shall be deemed to require an Equity Commitment Party or a Debt Commitment
Party to purchase more than its respective Equity Commitment Percentage of the Aggregate Equity Commitment Amount or Debt Commitment Percentage of the Aggregate Debt Commitment Amount. 

(g) For the avoidance of doubt, no provision of this Agreement shall relieve any Defaulting Party from liability hereunder, or
limit the availability of the remedies set forth in Section 10.9, in connection with any such Defaulting Party’s Debt Commitment Party Default or Equity Commitment Party Default. 

Section 2.4 Escrow Account; Funding . 

(a) Initial Deposit. As of the Investment Agreement Effective Date, (i) each Debt Commitment Party shall pay either
(x) by wire transfer in immediately available funds that are U.S. dollars or (y) by deliver of an irrevocable letter of credit or similar credit support agreement that is in a form and from a creditworthy financial institution that is
reasonably acceptable to the Company, in each case to the Escrow Agent in an amount equal to its Debt Deposit Amount to be held by the Escrow Agent in an Escrow Account and (ii) each Equity Commitment Party shall pay by wire transfer in
immediately available funds to Escrow Agent an amount equal to its Equity Deposit Amount to be held by the Escrow Agent in an Escrow Account. If a Commitment Party makes a Transfer pursuant to Section 2.6(a), then
(x) the Ultimate Purchaser of such Commitment Party’s Transferred Debt Commitment or Equity 

  
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Commitment, as applicable, shall pay by wire transfer in immediately available funds that are U.S. dollars to the Escrow Agent for deposit into an Escrow Account an amount equal to ten percent
(10%) of the Debt Commitment and/or Equity Commitment Transferred to such Ultimate Purchaser by the Commitment Party and (y) pursuant to the terms of the Escrow Agreement, the Escrow Agent shall distribute to the transferring Commitment Party
on a date no earlier than the date the Ultimate Purchaser makes a corresponding deposit pursuant to subclause (x), a portion of the Escrow Property equal to ten percent (10%) of the portion of the Debt Commitment and/or Equity Commitment, as
applicable, Transferred to the Ultimate Purchaser plus any interest earned on such amount under the Escrow Agreement while deposited in such Escrow Account. 

(b) Funding Notice. No later than the seventh (7th) Business Day following the Rights Offering Expiration Time, the
Company Agent shall, on behalf of the Company, deliver to each Commitment Party a written notice (the “Funding Notice,” and the date of such delivery, the “Funding Notice Date”) setting forth: 

(i) as to each Debt Commitment Party, the Debt Commitment Funding Amount after giving effect to the aggregate
principal amount of New Secured Notes to be purchased pursuant to the Debt Rights Offering; 
 (ii) as to
each Equity Commitment Party, the Equity Commitment Funding Amount, after giving effect to the aggregate Equity Securities to be purchased pursuant to the Creditor Equity Rights Offering; and 

(iii) as to each Commitment Party, the amount previously deposited into an Escrow Account by such Commitment
Party together with any interest thereon earned or to be earned prior to the Escrow Account Funding Date (the “Deposit Credit Amount”). 

The Company shall ensure that (x) the Company Agent shall provide all relevant written backup, information and documentation relating to
the information contained in the applicable Funding Notice simultaneously with delivery of the Funding Notice and (y) shall provide all further relevant written backup, information and documentation relating to the information contained in the
applicable Funding Notice as any relevant Commitment Party may reasonably request; and 
 (c) Escrow Account Funding.
Pursuant to the terms of the Escrow Agreement, on the date agreed with the Required Commitment Parties (the “Escrow Account Funding Date”), each Commitment Party shall deliver and pay an amount equal to its Debt Commitment
Funding Amount, if any, plus its Equity Commitment Funding Amount, if any, less its applicable Deposit Credit Amount by wire transfer of immediately available funds in U.S. dollars into its Escrow Account in satisfaction of such Commitment
Party’s Debt Commitment purchase obligation and/or Equity Commitment purchase obligation, as applicable; provided that in no event shall the Escrow Account Funding Date be less than ten (10) Business Days after the Funding Notice
Date or more than five (5) Business Days prior to the Effective Date. Payment to a Commitment Party’s Escrow Account in accordance with this Section 2.4 shall be a complete discharge to the relevant funding Person
who shall not be concerned with the distribution of such monies so paid. 

  
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 Section 2.5 Closing. 

(a) Subject to Article VI, unless otherwise mutually agreed in writing between the Company and
the Required Commitment Parties, the consummation of the commitments set forth in Section 2.1 and the issue and purchase of the Acquired Equity Securities, the Acquired Debt Securities, the Granted Equity Securities, the
Debt Rights Offering Securities (if any are to be issued and purchased) and the Creditor Equity Rights Offering Securities (if any are to be issued and purchased) pursuant to Section 2.1 (collectively, the
“Closing”) shall take place at the offices of Kirkland & Ellis LLP, 601 Lexington Ave, New York, New York 10022, at 10:00 a.m., New York City time, on the Effective Date; provided, however, if all of the conditions
set forth in Article VI have not been satisfied or waived in accordance with this Agreement as of Effective Date (other than conditions that by their terms are to be satisfied at the Closing, but subject to the satisfaction
or waiver of such conditions), the Closing shall occur on the date that is five (5) Business Days after the date on which all such conditions have been satisfied or waived in accordance with this Agreement (other than conditions that by their
terms are to be satisfied at the Closing, but subject to the satisfaction or waiver of such conditions). The date on which the Closing actually occurs shall be referred to herein as the “Closing Date.” 

(b) At the Closing, the Escrow Agent shall release and distribute the funds held in the Escrow Accounts to the Company or the
Company’s designee and such amounts shall be released and utilized in accordance with the Plan and the Escrow Agreement. 

(c) At the Closing, the Company shall procure that NSNCo shall and NSNCo shall issue and deliver the Acquired Debt Securities
to each Debt Commitment Party (including any Ultimate Purchaser in accordance with Section 2.6(a)) in an amount determined pursuant to Section 2.1(b) to such account or accounts as the relevant
Debt Commitment Party may designate. 
 (d) The New Secured Notes to be purchased hereunder and pursuant to the Debt Rights
Offering on the Closing Date from NSNCo will be represented by one or more definitive global notes in book-entry form which will be deposited by or on behalf of the NSNCo with DTC or its designated custodian. At the Closing, the Company shall
procure that NSNCo shall and NSNCo shall deliver the New Secured Notes to the purchasers thereof by causing DTC to credit the New Secured Notes to the account of the Trustee, against payment by the Persons to whom delivery is made, of the purchase
price therefor, as specified herein and in the Rights Offering Procedures. The certificates for the New Secured Notes purchased as provided herein and in the Rights Offering Procedures shall be in such denominations and registered in the name of
Cede & Co., as nominee of the Depositary, pursuant to the DTC Agreement, and shall be made available for inspection at the Closing location on the Business Day preceding the Closing Date. Notwithstanding anything to the contrary in this
Agreement, all New Secured Notes will be delivered with all issue, stamp, transfer, sales and use, or similar transfer Taxes or duties that are due and payable (if any) in connection with such delivery duly paid by the Company on behalf of NSNCo.

 (e) At the Closing, the Company shall procure that New Seadrill will issue the Acquired Equity Securities, the Granted
Equity Securities, the issued Creditor Equity Rights Offering Securities and the Equity Securities in satisfaction of the Structuring Fee, as applicable, to (i) each Equity Commitment Party (including any Ultimate Purchaser in accordance with
Section 2.6(a)) in an amount determined pursuant to Section 2.1(a), (ii) to the NSN Purchasers; 

  
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(iii) the Rights Offering Participants in the Creditor Equity Rights Offering as provided in Section 2.1(d); and (iv) Hemen and the Select Commitment Parties in
satisfaction of the Structuring Fees, or in each case, to such account or accounts as the relevant Person may designate. The Equity Securities issued in satisfaction of the Structuring Fee shall be paid up as to their nominal amount (the
“Equity Fee Nominal Amount”) by applying a part of the Aggregate Debt Commitment Amount payable by Hemen or such member of the Select Commitment Parties, as applicable, and reducing the aggregate price of the New Secured
Notes correspondingly. The Company will procure that New Seadrill contributes an amount equal to the Equity Fee Nominal Amount to NSNCo. 

(f) The following transactions shall occur immediately prior to or simultaneously with the Closing: 

(i) the New Seadrill Organizational Documents and the organizational documents of its Subsidiaries shall be
duly approved and adopted and shall be in full force and effect; 
 (ii) the written resignations, in an
agreed form, of the then-current directors and/or secretaries of New Seadrill, if any, resigning from such positions shall be delivered to the Company, with such resignations to take effect from Closing, except to the extent such director or
secretary is requested to continue their service to New Seadrill by holders of Equity Securities in accordance with such holders’ rights as set forth in the Board Governance Term Sheet; 

(iii) the appointment of any new directors and/or secretaries of New Seadrill (other than any continuing
directors and/or secretaries) shall be made in accordance with the Board Governance Term Sheet; 
 (iv) if
applicable and requested by the Required Commitment Parties, a written termination, in a form that is reasonably satisfactory to the Required Commitment Parties, of the then-appointed auditor of New Seadrill shall be delivered to such auditor, with
such resignation to take effect as of the Closing; 
 (v) if applicable and requested by the Required
Commitment Parties, the appointment of auditors of New Seadrill as requested by and on terms to be agreed with the Commitment Parties shall be made by New Seadrill; 

(vi) share certificates, if any, in respect of the issued Equity Securities shall be delivered by New Seadrill
to the NSN Purchasers and the Equity Commitment Parties and Rights Offering Participants in the Creditor Equity Rights Offering that purchase Equity Securities; 

(vii) the statutory registers and minute books (properly written up to the time immediately prior to Closing),
the common seal (if any), the certificate of incorporation and (if applicable) any certificate of incorporation on change of name and (if applicable) the authentication code for access to the companies regulator of New Seadrill’s location of
incorporation (if applicable) shall be made available at the registered office of New Seadrill; 

  
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 (viii) all existing instructions and authorities to bankers will
be revoked and will be replaced with alternative instructions, mandates and authorities in the agreed form with the Commitment Parties; 

(ix) the Closing Fee shall be paid by the Company; and 

(x) the Company Parties shall pay to the Commitment Parties all Incremental Expenses. 

Notwithstanding anything to the contrary in this Agreement, all Equity Securities and New Secured Notes shall be delivered
with all issue, stamp, transfer, sales and use, or similar transfer Taxes or duties that are due and payable (if any) in connection with such delivery duly paid by the Company on behalf of New Seadrill or NSNCo, as applicable. 

(g) If the Closing conditions contained in Section 6.1 are not satisfied and all Closing conditions
contained in Section 6.3 have been satisfied or waived in accordance with Section 6.4 and Section 6.5 or if this Agreement is otherwise terminated pursuant to
Article VIII, then the Escrow Agent shall distribute all amounts held by the Escrow Agent in accordance with Section 8.4 of this Agreement and the Escrow Agreement. 

Section 2.6 Designation and Assignment Rights. 

(a) The Commitment Parties shall not be entitled to Transfer all or any portion of their Debt Commitments or Equity
Commitments, as applicable, except as expressly provided in this Section 2.6(a). Notwithstanding anything to the contrary in the immediately preceding sentence or otherwise in this Agreement, each Commitment Party shall
have the right to Transfer all or any portion of its Debt Commitment or Equity Commitment, as applicable, to (i) an Affiliate or Affiliated Fund of the transferring Commitment Party (other than a portfolio company of the Commitment Party, its
Affiliates or Affiliated Funds), (ii) one or more special purpose vehicles that are wholly owned by one or more of such Commitment Parties, its Affiliates and its Affiliated Funds, created for the purpose of holding such obligations or holding
debt or equity of New Seadrill, the Company or its Subsidiaries and (iii) with respect to Debt Commitments only, to third-party investors (other than to institutions identified by name and designated in writing by the Company prior to the date
of this Agreement (“Company Disqualified Institutions”)) identified by such Commitment Party (with the written consent of the other Debt Commitment Parties); provided that in the case of (i), (ii) and (iii), prior to
such Transfer, the transferring Commitment Party shall provide the Company with reasonably sufficient evidence of such transferee’s (x) creditworthiness in relation to the obligation being transferred and (y) capability of
consummating the transactions contemplated hereby in a timely fashion; provided, further, that such transferee shall not be related to or Affiliated with any portfolio company of such Commitment Party or any of its Affiliates or
Affiliated Funds (other than solely by virtue of its affiliation with such Commitment Party) and the equity of such transferee shall not be directly or indirectly transferable other than to such Persons described in clauses (i), (ii) or
(iii) of this Section 2.6(a), and in such manner as such Commitment Party’s obligation is transferable pursuant to this Section 2.6(a) (each of the Persons referred to in
clauses (i), (ii) and (iii), an “Ultimate Purchaser”). In each case of a Commitment Party’s Transfer of all or any portion of its Debt Commitment or Equity Commitment, as applicable, pursuant to this
Section 2.6(a), (1) the Ultimate Purchaser shall have provided a written 
  

  
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agreement to the Company under which it (w) confirms the accuracy of the representations and warranties set forth in Article IV as applied to such Ultimate
Purchaser, (x) agrees to purchase such portion of such Commitment Party’s Debt Commitment or the Equity Commitment, as applicable, (y) agrees to be fully bound by, and subject to, this Agreement as a Debt Commitment Party or Equity
Commitment Party, as applicable, by executing a Joinder Agreement and (z) executes a joinder agreement for the Escrow Agreement in the form of the joinder agreement attached thereto, and (2) the transferring Commitment Party and the
Ultimate Purchaser shall have duly executed and delivered to the Company and Kirkland & Ellis LLP (at the addresses set forth in Section 10.1) written notice of such Transfer; provided, however, that
unless the Company has consented (in its sole discretion) that such Transfer will relieve the transferring Commitment Party of its obligations hereunder (a “Full Transfer”), no such Transfer shall relieve the transferring
Commitment Party from any of its obligations hereunder. For the avoidance of doubt, unless the Company consents to a Full Transfer, if such Ultimate Purchaser becomes a Defaulting Party, no provision of this Agreement shall relieve any Defaulting
Party or the Commitment Party that transferred all or any portion of its Debt Commitments or Equity Commitments, as applicable, to such Defaulting Party, from liability hereunder, or limit the availability of the remedies set forth in
Section 10.9. If the Company has consented to a Full Transfer (in its sole discretion), then after such Full Transfer, the transferring Commitment Party shall no longer be obligated to fund that portion of the Commitment
Party’s Debt Commitment Funding Amount and/or Equity Commitment Funding Amount so transferred and if such Ultimate Purchaser becomes a Defaulting Party, the Commitment Party that transferred all or any portion of its Debt Commitment or Equity
Commitment, as applicable, to such Defaulting Party shall not be liable for any obligations of such Defaulting Party. Other than as set forth in this Section 2.6(a), no Commitment Party shall be permitted to Transfer all or
any portion of its Debt Commitment or Equity Commitment, as applicable, without the prior written consent of the Company, which, as applied to Transfers other than a Full Transfer, shall not be unreasonably withheld, conditioned or delayed. 

(b) Each Commitment Party, severally and not jointly, agrees that it will not Transfer, at any time prior to the Closing Date
or the earlier termination of this Agreement in accordance with its terms, any of its rights and obligations under this Agreement to any Person other than in accordance with Section 2.6(a). After the Closing Date, nothing
in this Agreement shall limit or restrict in any way the ability of any Commitment Party (or any permitted transferee thereof) to Transfer any of the New Secured Notes or Equity Securities or any interest therein; provided that any such
Transfer shall be in compliance with any applicable provisions in the Restructuring Support and Lock-Up Agreement and otherwise made pursuant to an effective registration statement under the Securities Act or
an exemption from the registration requirements thereunder and pursuant to applicable securities Laws. 
 ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

Except as disclosed in the Company Parties’ Disclosure Schedule, the Virtual Data Room, the Company SEC Documents filed
with the SEC on or after March 31, 2014, and publicly available on the SEC’s Electronic Data-Gathering, Analysis and Retrieval system prior 

  
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to the date hereof (excluding any disclosures contained in the “Forward-Looking Statements” or “Risk Factors” sections thereof, or any other statements that are similarly
predictive, cautionary or forward looking in nature), the Company, on behalf of itself, each of the other Debtors and NSNCo and New Seadrill (in each case, once formed and as applicable), jointly and severally, hereby represents and warrants to the
Commitment Parties as of the date hereof, or once formed and subject to the terms of the Joinder Agreement, as applicable, and as of the Closing Date (except for such representation and warranties that are made as of a specific date, which are made
only as of such date), as follows: 
 Section 3.1 Organization and Qualification. The Company, NSNCo, New Seadrill,
each of the Debtors and each other material Subsidiary of the Company (a) is or will be, as applicable, a duly organized and validly existing company, corporation, limited liability company or limited partnership, as the case may be, and, if
applicable, in good standing (or the equivalent thereof) under the Laws of the jurisdiction of its incorporation or organization, (b) has or will have, as applicable, the corporate or other applicable power and authority to own its property and
assets and to transact the business in which it is currently engaged and presently proposes to engage and (c) except where the failure to have such authority or qualification would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect, is or will be, as applicable, duly qualified and is authorized to do business and is in good standing in each jurisdiction where the conduct of its business as currently conducted requires such qualifications.

 Section 3.2 Corporate Power and Authority. 

(a) The Company has, and each of NSNCo and New Seadrill will have as applicable, (i) the requisite corporate power
and authority (A) to enter into, execute and deliver this Agreement and (B) subject to entry of the Confirmation Order, to perform each of its other obligations hereunder (including payment of the Commitment Fee, the Equity Purchaser
Cash Fee and each Commitment Party’s Expenses) and the Restructuring Support and Lock-Up Agreement (except for such obligations that are specified in each such agreement as becoming effective immediately
upon the execution by the Company Parties, which in each case the requisite power and authority shall not be subject to entry of the Confirmation Order) and (ii) at the time such actions are taken, will have the requisite corporate power and
authority, subject to entry of the Confirmation Order, to consummate the transactions contemplated herein and in the Plan, to enter into, execute and deliver all agreements to which it will be a party as contemplated by the this Agreement and the
Plan and to perform its obligations under each of the Definitive Documents (other than this Agreement). The Company has taken, and each of New Seadrill and NSNCo will have taken at the time of execution and delivery of any agreement contemplated by
this Agreement, the Definitive Documents and the Plan to which it is a party, all necessary corporate action required for the due authorization, execution, delivery and performance by them of this Agreement, including the issuance and offering of
the Debt Subscription Rights, Equity Subscription Rights, New Secured Notes and the Equity Securities and all other agreements to which they are or will be party as contemplated by this Agreement and the Definitive Documents and the Plan (such
agreements, collectively, the “Transaction Agreements”). 
 (b) Subject to entry of the Confirmation
Order, each of the other Debtors has the requisite corporate power and authority to enter into, execute and deliver each Transaction Agreement to which such other Debtor is a party and to perform its obligations thereunder.

  
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Subject to entry of the Confirmation Order, the execution and delivery of this Agreement and each of the other Definitive Documents and the consummation of the transactions contemplated hereby
and thereby have been or will be duly authorized by all requisite corporate action on behalf of each other Debtor party thereto, and no other proceedings on the part of any other Debtor party thereto are or will be necessary to authorize this
Agreement or any of the other Definitive Documents or to consummate the transactions contemplated hereby or thereby. 

Section 3.3 Execution and Delivery; Enforceability. 

(a) This Agreement has been and, upon the execution and delivery of each other Transaction Agreement and the Indenture,
each other Transaction Agreement and the Indenture will be, duly and validly executed and delivered by the Company, NSNCo, New Seadrill or the Debtors, as applicable. Upon entry of the Confirmation Order and assuming due and valid execution and
delivery of this Agreement and the other Definitive Documents by the Commitment Parties and, to the extent applicable, any other parties hereof and thereof, each of the obligations of the Company, NSNCo, New Seadrill and, to the extent applicable,
the other Debtors hereunder and thereunder will constitute the valid and legally binding obligations of the Company, NSNCo, New Seadrill and, to the extent applicable, the other Debtors, enforceable against the Company, NSNCo, New Seadrill and, to
the extent applicable, the other Debtors, in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization, moratorium and other similar Laws now or hereafter in effect relating to creditor’s rights generally and
subject to general principles of equity. 
 (b) The Plan will be duly and validly filed with the Bankruptcy Court by the
Debtors in accordance with the Restructuring Support and Lock-Up Agreement and, upon entry of the Confirmation Order and consummation of the Plan, will constitute the valid and binding obligation of the
Debtors, enforceable against the Debtors in accordance with its terms. 
 (c) Subject to the requirements of applicable local
Laws, each Security Document, when executed and delivered in connection with the issuance of the New Secured Notes, will be effective to create in favor of the Collateral Agent under the Indenture for the benefit of itself, the trustee under the
Indenture and the holders of the New Secured Notes, a legal, valid and enforceable security interest in the NSN Collateral described in the New Secured Notes Term Sheet except as enforceability may be limited by applicable bankruptcy, fraudulent
conveyance, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law) and the implied
covenants of good faith and fair dealing. Upon completion of the delivery, filing and other actions specified in the relevant Security Documents, the Collateral Agent under the Indenture shall have a fully perfected security interest in the NSN
Collateral on the terms set forth in the New Secured Notes Term Sheet (to the extent a security interest in the NSN Collateral can be perfected through taking of such actions), as security for the obligations under the Indenture. 

(d) The New Secured Notes will, on the Closing Date, (A) be in the form contemplated by the Indenture governing such New
Secured Notes, (B) have been duly authorized for issuance and sale pursuant to this Agreement and the Indenture governing such New Secured Notes and (C) have been duly executed by the Company and NSNCo and, when authenticated in the manner
provided for in the Indenture governing such New Secured Notes 

  
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and delivered against payment of the purchase price therefor, will constitute valid and binding obligations of the Company and NSNCo. The guarantees executed by the guarantors to the New Secured
Notes (the “Guarantees,” and the guarantors, the “Guarantors”) on the Closing Date when issued will be in the respective forms contemplated by the Indenture governing such Guarantee and have been duly
authorized for issuance pursuant to the Indenture governing such Guarantee; the Guarantees, at the Closing Date, have been duly executed by each of the Guarantors and, when the applicable New Secured Notes have been authenticated in the manner
provided for in the Indenture governing such Guarantee and issued and delivered against payment of the purchase price therefor, such Guarantee will constitute a valid and binding agreement of the applicable Guarantor, enforceable against such
Guarantor in accordance with its terms. 
 Section 3.4 Reorganisation; New Seadrill. 

(a) On the Closing Date, (i) the Equity Securities will consist of all of the issued and outstanding common shares as set
forth in the articles of association of New Seadrill filed as part of a supplement to the Plan, (ii) no Equity Securities will be held by New Seadrill in its treasury, (iii) the Equity Securities will be available for issuance in
accordance with the Plan and/or upon exercise of options and other rights to purchase or acquire membership interests granted in connection with New Seadrill’s employee incentive plan (“EIP”) if the EIP has been adopted
by the managers or other governing body of New Seadrill as of the Closing Date, and any other employment arrangement approved by the managers or other governing body of New Seadrill, and (iv) no warrants to purchase Equity Securities will be
issued and outstanding. 
 (b) As of the Closing Date, all issued and outstanding Equity Securities shall have been duly
authorized and validly issued and shall be fully paid and non-assessable, and such Equity Securities shall be available for issuance to each Commitment Party by all necessary company action and, when issued in
accordance with the terms of this Agreement and the other applicable Definitive Documents, shall be validly issued and shall be fully paid and non-assessable and free and clear of any Lien or charge of any
kind, or an agreement, arrangement or obligation to create any Lien or Taxes and (except as set forth in the Registration Rights Agreement, the corporate governance documents and under Bermuda law) the issuance of such Equity Securities will not be
subject under any other agreement to the preemptive or other similar rights of any security holder of the Company. 
 (c)
Except as set forth in this Section 3.4 or in the Definitive Documents, as of the Closing Date, no membership interest or other equity securities or voting interest in New Seadrill will have been issued, available for
issuance or outstanding. 
 Section 3.5 Authorized and Issued Equity Interests . Except as set forth in the
Restructuring Support and Lock-Up Agreement, the Plan and this Agreement, as of the Closing Date, none of the Company, New Seadrill or any of their material Subsidiaries will be party to or otherwise bound by
or subject to any outstanding option, warrant, call, right, security, commitment, Contract, arrangement or undertaking (including any preemptive right) that (i) obligates any of the Company, New Seadrill or any such Subsidiary to issue,
deliver, sell or transfer, or repurchase, redeem or otherwise acquire, or cause to be issued, delivered, sold or transferred, or repurchased, redeemed or otherwise acquired, any units or shares of capital stock 

  
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of, or other equity or voting interests in, any of the Company, New Seadrill or any such Subsidiary or any security convertible or exercisable for or exchangeable into any units or shares of
capital stock of, or other equity or voting interests in, any of the Company, New Seadrill or any such Subsidiary, (ii) obligates any of the Company, New Seadrill or any such Subsidiary to issue, grant, extend or enter into any such option,
warrant, call, right, security, commitment, Contract, arrangement or undertaking, (iii) restricts the Transfer of any units or shares of capital stock of, or other equity interests in, any of the Company, New Seadrill or any such Subsidiary or
(iv) relates to the voting of any shares, units or other equity interests in any of the Company, New Seadrill or any such Subsidiary. On the Effective Date, New Seadrill shall only issue capital stock or other equity interests as expressly and
specifically authorized pursuant to the Plan and this Agreement. 
 Section 3.6 No Conflict. Assuming the consents
described in clauses (a) through (e) of Section 3.7 are obtained, the execution and delivery by the Company, New Seadrill or any of their Subsidiaries and any other Debtor, as applicable, of this Agreement, the
Plan and the other Definitive Documents, the compliance by the Company, New Seadrill or any of their Subsidiaries and, if applicable, any other Debtor with the provisions hereof and thereof and the consummation of the transactions contemplated
herein and therein will not (a) conflict with, or result in a breach, modification or violation of, any of the terms or provisions of, or constitute a default under (with or without notice or lapse of time, or both), or result, except to the
extent specified in the Plan in the acceleration of, or the creation of any Lien under, or cause any payment or consent to be required under any Contract to which the Company, New Seadrill or any of their Subsidiaries or any other Debtor will be
bound as of the Closing Date after giving effect to the Plan or to which any of the property or assets of the Company, New Seadrill or any of their Subsidiaries or any Debtor will be subject as of the Closing Date after giving effect to the Plan,
(b) result in any violation of the provisions of any of the Company’s, New Seadrill’s, any of their material Subsidiaries’ or other Debtors’ organizational documents (other than, for the avoidance of doubt, a breach or
default that would be triggered as a result of the Chapter 11 Cases and/or Ancillary Proceedings, as applicable, or the Company’s, New Seadrill’s or any of their Subsidiaries or any other Debtor’s undertaking to implement the
Restructuring Transactions through the Chapter 11 Cases and/or Ancillary Proceedings, as applicable), or (c) result in any violation of any Law or Order applicable to the Company, New Seadrill or any of their Subsidiaries or any Debtors or
any of their properties, except in each of the cases described in clauses (a) or (c) for any conflict, breach, modification, violation, default, acceleration or Lien which would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect. 
 Section 3.7 Consents and Approvals. No consent, approval, authorization,
Order, registration or qualification of or with any Governmental Entity having jurisdiction over any of the Company, New Seadrill or any of their material Subsidiaries or any other Debtors or any of their properties (each, an “Applicable
Consent”) is required for the execution and delivery by the Company, New Seadrill or any such Subsidiary or other Debtor of this Agreement, the Plan and the other Definitive Documents, the compliance by the Company, New Seadrill or any
such Subsidiary or other Debtor, with the provisions hereof and thereof and the consummation of the transactions contemplated herein and therein, except for (a) the entry of the Confirmation Order, (b) entry of the Disclosure Statement
Order, (c) entry by the Bankruptcy Court or any other court of competent jurisdiction (including any such court that may properly 

  
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preside over the Ancillary Proceedings, if any), of Orders as may be necessary in the Chapter 11 Cases and/or Ancillary Proceedings, from time-to-time, (d) filings, notifications, authorizations, approvals, consents, clearances or termination or expiration of all applicable waiting periods under any Antitrust Laws in connection with the
transactions contemplated by this Agreement, (e) such consents, approvals, authorizations, registrations or qualifications as may be required under applicable federal, foreign and/or state securities or “Blue Sky” Laws in connection
with the issuance of the Debt Subscription Rights, Equity Subscription Rights, the issuance of the Debt Rights Offering Securities pursuant to the exercise of the Debt Subscription Rights and the issuance of the Creditor Equity Rights Offering
Securities pursuant to the exercise of the Equity Subscription Rights, (f) the listing of the Equity Securities on the New York Stock Exchange or the Oslo Stock Exchange, and (g) any Applicable Consents that have already been made or
obtained or, if not made or obtained, would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect (each, a “Non-Applicable Consent”).
Notwithstanding any of the foregoing, no Non-Applicable Consent is required for the execution and delivery of this Agreement by the Company, New Seadrill or any of their material Subsidiaries or any other
Debtors. 
 Section 3.8 Financial Statements. The financial statements and the related notes thereto of the Company and
its consolidated Subsidiaries included or incorporated by reference in the documents filed by the Company with the SEC under the Exchange Act since January 1, 2015 and prior to the date of this Agreement (the “Exchange Act
Documents”) complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto as of the dates indicated and the results of their operations and
their cash flows for the periods specified. Such financial statements have been prepared in conformity with GAAP applied on a consistent basis throughout the periods covered thereby (except as disclosed in the Exchange Act Documents).  
 Section 3.9 Financial Projections. All material projections
provided by the Company to the Commitment Parties in writing prior to the date hereof in connection with the transaction contemplated by this Agreement were, and as of the Closing Date, any updated projections shall have been, prepared in good faith
and based upon assumptions considered reasonable by the Company at the time made in light of past business operations (it being understood and acknowledged by the Commitment Parties that projections are subject to uncertainties and contingencies and
that actual results may differ in a material respect from such projections). 
 Section 3.10 Registration Statement;
Offering Memorandum. (i) When declared effective by the SEC and after giving effect to any amendments or supplements thereto, the Registration Statement will not contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make the statements therein not misleading, and the prospectus contained therein will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading and (ii) the final Offering Memorandum, as of the date set forth on its cover page and after giving effect to any amendments or supplements thereto pursuant to section 5.2(f)
of this Agreement, will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 

  
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 Section 3.11 Company SEC Documents and Disclosure Statement. Since
December 31, 2016, the Company and its Subsidiaries have filed all required Company SEC Documents with the SEC. As of the date hereof, no Company or Subsidiary SEC Document that has been filed prior to the date this representation has been
made, after giving effect to any amendments or supplements thereto and to any subsequently filed Company SEC Documents, in each case filed prior to the date this representation is made, contained any untrue statement of a material fact or omitted to
state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The Disclosure Statement as approved by the Bankruptcy Court will contain “adequate
information,” as such term in defined in section 1125 of the Bankruptcy Code, and will otherwise comply in all material respects with section 1125 of the Bankruptcy Code. 

Section 3.12 Absence of Certain Changes. Since December 31, 2016, no Event has occurred or exists that constitutes,
individually or in the aggregate, a Material Adverse Effect. 
 Section 3.13 No Violation; Compliance with Laws.
(a) The Company is not in violation of its memorandum of association or bye-laws, and (b) New Seadrill, NSNCo and no other Debtor is in violation of its respective memorandum of association or bye-laws, certificate of formation or limited liability company operating agreement or similar organizational document in any material respect. None of the Company, New Seadrill, NSNCo or the other Debtors is or has
been at any time since January 1, 2015 in violation of any Law or Order, except for any such violations that have not had and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 

Section 3.14 Legal Proceedings. Other than the Chapter 11 Cases and/or Ancillary Proceedings, as applicable, and any
adversary proceedings, contested matters, or similar proceedings in connection therewith, there are no material legal, governmental, administrative, judicial or regulatory investigations, audits, actions, suits, claims, arbitrations, demands, demand
letters, claims, notices of noncompliance or violations, or proceedings (“Legal Proceedings”) pending or, to the Knowledge of the Company, threatened to which any of the Company, New Seadrill or any of their Subsidiaries or
any other Debtors is a party or may become a party or to which any property of any of such Persons is the subject, in each case that in any manner draws into question the validity or enforceability of this Agreement, the Plan or the other Definitive
Documents or that would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 

Section 3.15 Labor Relations. Except as would not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect, there are no strikes or other labor disputes pending or threatened against any of the Company, New Seadrill or any of their Subsidiaries or any other Debtors. Except as would not reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect, the consummation of the transactions contemplated by the Definitive Documents will not give rise to a right of termination or right of renegotiation on the part of any union under any material
collective bargaining agreement to which any of the Company, New Seadrill or any of their Subsidiaries or any other Debtors (or any predecessor) is a party or by which any of such Persons (or any predecessor) is bound. 

  
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 Section 3.16 Intellectual Property. Except as would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect, (a) each of the Company, New Seadrill, any of their Subsidiaries and any other Debtors owns, or possesses the right to use, all of the patents, patent rights,
trademarks, service marks, trade names, copyrights, mask works, domain names, and any and all applications or registrations for any of the foregoing (collectively, “Intellectual Property Rights”) that are reasonably necessary
for the operation of their respective businesses, without conflict with the rights of any other Person, (b) to the Knowledge of the Company, none of the Company, New Seadrill or any of their Subsidiaries or any other Debtors, nor any
Intellectual Property Right, proprietary right, product, process, method, substance, part, or other material now employed, sold or offered by or contemplated to be employed, sold or offered by such Person, is interfering with, infringing upon,
misappropriating or otherwise violating any valid Intellectual Property Rights of any Person, and (c) no claim or litigation regarding any of the foregoing is pending or, to the Knowledge of the Company, threatened. 

Section 3.17 Title to Real and Personal Property. 

(a) Real Property. Each of the Company, New Seadrill or any of their Subsidiaries and any other Debtors has good and defensible
title to its respective Real Properties, in each case, except for Permitted Liens and except for defects in title that do not materially interfere with its ability to conduct its business as currently conducted or to utilize such properties and
assets for their intended purposes, and except where the failure (or failures) to have such title would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. To the Knowledge of the Company, all such
properties and assets are free and clear of Liens, except for Permitted Liens and except for such Liens as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 

(b) Leased Real Property. Each of the Company, New Seadrill or any of their Subsidiaries and other Debtors is in compliance
with all obligations under all leases to which it is a party that have not been rejected in the Chapter 11 Cases or Ancillary Proceedings, except where the failure to comply would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect, and none of such Persons has received written notice of any good faith claim asserting that such leases are not in full force and effect, except leases in respect of which the failure to be in full force and
effect would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. Each of the Debtors enjoys peaceful and undisturbed possession under all such leases, other than leases in respect of which the failure to
enjoy peaceful and undisturbed possession would not reasonably be expected to materially interfere with its ability to conduct its business as currently conducted or have, individually or in the aggregate, a Material Adverse Effect. 

(c) Personal Property. Except to the extent such failure would not reasonably be expected to be materially adverse to the
Company Parties, each of the Company, New Seadrill and each of their material Subsidiaries and the other Debtors have good title to, free and clear of any and all Liens, or a valid leasehold interest in, all personal properties, machinery, equipment

  
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and other tangible assets of the business necessary for the conduct of the business as presently conducted and such properties, (x) are in the possession or control of the applicable
Company, New Seadrill or any of their Subsidiaries and other Debtors, as appropriate; and (y) are in good and operable condition and repair, reasonable wear and tear excepted. 

(d) Intellectual Property. Each of the Company, New Seadrill or any of their Subsidiaries and other Debtors owns or possesses
the right to use all Intellectual Property Rights and all licenses and rights with respect to any of the foregoing used in the conduct of their businesses, without any conflict (of which any of the Company, New Seadrill or any of their Subsidiaries
and other Debtors has been notified in writing) with the rights of others, and free from any burdensome restrictions on the present conduct of the Company, New Seadrill or any of their Subsidiaries and other Debtors, as the case may be, except where
such conflicts and restrictions would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 

Section 3.18 Licenses and Permits. The Company, New Seadrill or any of their Subsidiaries and other Debtors possess all
licenses, certificates, permits and other authorizations issued by, have made all declarations and filings with and have maintained all financial assurances required by, the appropriate Governmental Entities that are necessary for the ownership or
lease of their respective properties and the conduct of the business, except where the failure to possess, make or give the same would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. None of the
Company, New Seadrill or any of their Subsidiaries and other Debtors (i) has received notice of any revocation or modification of any such license, certificate, permit or authorization or (ii) has any reason to believe that any such
license, certificate, permit or authorization will not be renewed in the ordinary course, except to the extent that any of the foregoing would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 

Section 3.19 Environmental. Except as to matters that would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect: (a) no written notice, claim, demand, request for information, Order, complaint or penalty has been received by the Company, New Seadrill or any of their Subsidiaries or other Debtors, and there are no
Legal Proceedings pending or, to the Knowledge of the Company, threatened which allege a violation of or liability under any Environmental Law, in each case relating to the Company, New Seadrill or any of their Subsidiaries or other Debtors,
(b) each of the Company, New Seadrill or any of their Subsidiaries and other Debtors has received (including timely application for renewal of the same) and maintains in full force and effect all environmental permits, licenses, certificates
and other approvals, and maintains all financial assurances, in each case to the extent necessary for its operations to comply with all applicable Environmental Laws and is, and since January 1, 2015 has been, in compliance with the terms of
such permits, licenses, certificates and other approvals and with all applicable Environmental Laws, (c) no Hazardous Material is located at, on or under any property currently or formerly owned, operated or leased by the Company, New Seadrill
or any of their Subsidiaries or other Debtors that would reasonably be expected to give rise to any cost, liability or obligation of any of the Company, New Seadrill or any of their Subsidiaries or other Debtors under any Environmental Laws other
than future costs, liabilities and obligations that are asset retirement obligations to be incurred in the ordinary course of business and that are specified in the Exchange Act Documents, (d) no Hazardous Material has 

  
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been Released, generated, treated, stored or handled by (or on behalf of) the Company, New Seadrill or any of their Subsidiaries or other Debtors, and no Hazardous Material has been transported
to or Released at any location, in each case, in a manner that would reasonably be expected to give rise to any cost, liability or obligation of the Company, New Seadrill or any of their Subsidiaries or other Debtors under any Environmental Laws
other than future costs, liabilities and obligations incurred in the ordinary course of business, and (e) there are no agreements in which any of the Debtors has expressly assumed or undertaken responsibility for any known or reasonably likely
liability or obligation of any other Person arising under or relating to Environmental Laws that remains unresolved, which has not been made available to the Commitment Parties prior to the date hereof. Notwithstanding the generality of any other
representations and warranties in this Agreement, the representations and warranties in this Section 3.20 constitute the sole and exclusive representations and warranties in this Agreement with respect to any environmental,
health or safety matters arising under Environmental Laws. 
 Section 3.20 Tax Returns. Except as to matters that would
not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect: 
 (a) Each of the Company,
New Seadrill or any of their Subsidiaries and other Debtors has timely filed or caused to be filed (taking into account any applicable extension of time within which to file) all tax returns, statements, forms and reports (including elections,
declarations, disclosures, schedules, estimates and information Tax Returns) for Taxes (“Tax Returns”) required to have been filed by it. Each such Tax Return is true and correct in all respects; 

(b) Except to the extent the non-payment thereof is permitted by the Bankruptcy Code,
each of the Company, New Seadrill or any of their Subsidiaries and other Debtors has timely paid or caused to be timely paid all Taxes shown to be due and payable by it on the returns referred to in Section 3.20(a). 

(c) Except to the extent the non-payment thereof is permitted by the Bankruptcy Code,
all Taxes (other than Taxes referred to in Section 3.20(b) with respect to periods or portions of periods ending on or before the date hereof have been paid, other than Taxes (i) which are not delinquent or
(ii) which are being contested in good faith pursuant to appropriate proceeding, in each case, for which adequate provision or reserve has been made; 

(d) As of the date hereof, with respect to the Company, New Seadrill or any of their Subsidiaries and other Debtors, other than
in connection with the Chapter 11 Cases and/or Ancillary Proceedings, as applicable, and other than Taxes that are being contested in good faith for which adequate provision or reserve has been made, (i) no claims of deficiency have been
asserted in writing with respect to any Taxes, (ii) no presently effective waivers or extensions of statutes of limitation with respect to Taxes have been given, other than extensions or waivers provided in the ordinary course of business, and
(iii) no Tax Returns are being examined by, and no written notification of intention to examine has been received from, the Applicable Taxing Authorities; 

  
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 (e) All Taxes that the Company, New Seadrill or any of their Subsidiaries and
other Debtors (taken as a whole) were (or was) required by Law to withhold or collect in connection with amounts paid or owing to any employee, independent contractor, creditor, shareholder or other third party have been duly withheld or collected,
and have been timely paid to the proper authorities to the extent due and payable; 
 (f) There are no Liens with respect to
Taxes upon any of the assets or properties of the Company, New Seadrill or any of their Subsidiaries and other Debtors (taken as a whole), other than Liens for Taxes that (i) are not due and payable (or for which payment has been suspended as a
result of the Chapter 11 Cases) or (ii) are being contested in good faith by appropriate proceedings and for which adequate reserves have been made with respect thereto; 

(g) The Company, New Seadrill or any of their Subsidiaries and other Debtors have no liability for any amount of Taxes of any
other person or entity, either by operation of law, by contract or as a transferee or successor. The Company, New Seadrill or any of their Subsidiaries and other Debtors are not a party to any Tax allocation or Tax sharing agreement with any third
party (other than an agreement entered into the principal purpose of which is not the sharing, assumption or indemnification of Tax, including, without limitation, leases, licenses and sale or acquisition agreements); and 

(h) None of the Company, New Seadrill or any of their Subsidiaries or other Debtors has been included in any
“consolidated,” “unitary” or “combined” Tax Return provided for under any law with respect to Taxes for any taxable period for which the statute of limitations has not expired (other than a group of which the Company
and/or its current or past Subsidiaries are or were the only members). 
 Section 3.21 Material Contracts. Other than
as a result of rejection by the Debtors in the Chapter 11 Cases or Ancillary Proceedings, as applicable, the automatic stay under the Bankruptcy Code, injunctions in the Plan, or like, provisions applicable in connection with the Ancillary
Proceedings, or any direct consequence thereof, all Material Contracts are valid, binding and enforceable by and against the Debtor party thereto and, to the Knowledge of the Company, each other party thereto (except where the failure to be valid,
binding or enforceable does not constitute a Material Adverse Effect), and no written notice to terminate, in whole or part, any Material Contract has been delivered to any of the Debtors (except where such termination would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect). Other than as a result of the filing or continuance of the Chapter 11 Cases or Ancillary Proceedings, as applicable, or any direct consequence thereof, none of the
Company, New Seadrill or any of their Subsidiaries and other Debtors nor, to the Knowledge of the Company, any other party to any Material Contract, is in material default or breach under the terms thereof, in each case, except for such instances of
material default or breach that would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 

Section 3.22 No Unlawful Payments. The Company, New Seadrill or any of their Subsidiaries and other Debtors nor, to the
Knowledge of the Company, any of their respective directors, officers or employees has in any material respect: (a) used any funds of any of the Company, New Seadrill or any of their Subsidiaries and other Debtors for any unlawful contribution,
gift, entertainment or other unlawful expense, in each case relating to political activity; (b) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (c) violated or
is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977; or (d) made any bribe, rebate, payoff, influence payment, kickback or other similar unlawful payment. 

  
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 Section 3.23 Compliance with Money Laundering Laws. The operations of the
Company, New Seadrill or any of their Subsidiaries and other Debtors are and have been at all times, conducted in compliance in all material respects with applicable financial recordkeeping and reporting requirements of the U.S. Currency and Foreign
Transactions Reporting Act of 1970, the money laundering statutes of all jurisdictions in which the Company, New Seadrill or any of their Subsidiaries and other Debtors operate (and the rules and regulations promulgated thereunder) and any related
or similar Laws (collectively, the “Money Laundering Laws”) and no material Legal Proceedings by or before any Governmental Entity or any arbitrator involving any of the Company, New Seadrill or any of their Subsidiaries and
other Debtors with respect to Money Laundering Laws are pending or, to the Knowledge of the Company, threatened. 

Section 3.24 Compliance with Sanctions Laws. None of the Company, New Seadrill or any of their Subsidiaries and other
Debtors nor, to the Knowledge of the Company, any of their respective directors, officers, employees or other Persons acting on their behalf with express authority to so act is currently the subject of any U.S. sanctions administered by the
Office of Foreign Assets Control of the U.S. Treasury Department. The Company, New Seadrill, and any other Debtors will not directly or indirectly use the proceeds of the New Secured Notes and the Equity Securities issuance, or lend, contribute
or otherwise make available such proceeds to any subsidiary, joint venture partner or other person, for the purpose of financing the activities of any person, or in any country or territory, that, at the time of such financing, is the subject of
U.S. sanctions, or in any other manner that will result in a violation by any Party to this Agreement of U.S. sanctions. 

Section 3.25 No Broker’s Fees. Except as provided in this Agreement, none of the Company, New Seadrill or any of
their Subsidiaries and other Debtors is a party to any Contract with any Person (other than this Agreement) that would give rise to a valid claim against the Commitment Parties for a brokerage commission, finder’s fee or like payment in
connection with the Rights Offerings or the sale of the New Secured Notes or Equity Securities. 
 Section 3.26
Insurance. Except as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect: (i) the Company, New Seadrill or any of their Subsidiaries and other Debtors have insured their material properties and
assets against such risks and in such amounts as are customary for companies engaged in similar businesses and have made available to the Commitment Parties a schedule of such insurance policies in force; (ii) all premiums due and payable in
respect of material insurance policies maintained by the Company, New Seadrill or any of their Subsidiaries and other Debtors have been paid; (iii) the Company reasonably believes that the insurance maintained by or on behalf of the Company,
New Seadrill or any of their Subsidiaries and other Debtors is adequate in all material respects; and (iv) as of the date hereof, to the Knowledge of the Company, none of the Company, New Seadrill or any of their Subsidiaries or other Debtors
has received notice from any insurer or agent of such insurer with respect to any material insurance policies of such Persons of cancellation or termination of such policies, other than such notices which are received in the ordinary course of
business or for policies that have expired in accordance with their terms. 

  
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 Section 3.27 Investment Company Act. None of the Company, New Seadrill or
any of their respective Subsidiaries that are a party to the Credit Facility Documents or that are the issuer or guarantors of the New Secured Notes, after the consummation of the Restructuring Transactions, will be, an “investment
company” or a company “controlled” by an “investment company” required to register under the Investment Company Act of 1940, as amended. 

Section 3.28 No General Solicitation. None of the Company nor any of its respective Subsidiaries or any other person
acting on behalf of any of them has engaged, in connection with the offering of the New Secured Notes (and Guarantees) and the Equity Securities, in any form of general solicitation or general advertising within the meaning of Rule 502(c) under the
Securities Act. Assuming the accuracy of the representations and warranties of the Commitment Parties in Article 4 hereof and their compliance with their agreements set forth herein, it is not necessary in connection with the offer, sale and
delivery of the New Secured Notes or the Equity Securities to the Commitment Parties in the manner contemplated by this Agreement to register any of the New Secured Notes or the Equity Securities under the Securities Act. 

Section 3.29 Rule 144A Eligibility. At the Closing Date, the New Secured Notes (and Guarantees) will be eligible for
resale pursuant to Rule 144A and will not be of the same class as securities listed on a national securities exchange registered under Section 6 of the Exchange Act, or quoted in a U.S. automated interdealer quotation system.  
 Section 3.30 Securities Registration Exemption. The issuance of
the New Secured Notes and the Equity Securities in the manner contemplated by the Disclosure Statement shall be exempt from registration pursuant to Section 4(a)(2) under the Securities Act in the United States, Regulation S and/or Regulation D
thereunder or another exemption from the Securities Act. With respect to those New Secured Notes and the Equity Securities sold in reliance upon Regulation S under the Securities Act, (i) none of the Company, New Seadrill, the Guarantors or any
of their respective affiliates or any person acting on its or their behalf has engaged or will engage in any directed selling efforts within the meaning of Regulation S under the Securities Act and (ii) each of the Company, New Seadrill, the
Guarantors and any of their respective affiliates and any person acting on its or their behalf has complied and will comply with the offering restrictions set forth in Regulation S under the Securities Act. 

Section 3.31 Similar Offerings. None of the Company, New Seadrill, the Guarantors or any of their respective affiliates,
as such term is defined in Rule 501(b) under the Securities Act, has, directly or indirectly, solicited any offer to buy, sold or offered to sell or otherwise negotiated in respect of, in the United States or to any United States citizen or
resident, any security which is or would be integrated with the sale of the New Secured Notes (and Guarantees) and Equity Securities in a manner that would require the offered New Secured Notes (and Guarantees) and Equity Securities to be registered
under the Act.  
 Section 3.32 No Undisclosed Relationship. No
relationship, direct or indirect, exists between or among the Company, on the one hand, and the directors, officers and 10% shareholders of the Company, on the other hand, that is required by the Exchange Act to be described in the Company’s
filings with the SEC and that are not so described in such filings, except for the transactions contemplated by this Agreement. 

  
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 Section 3.33 No Undisclosed Liabilities. Except as would not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect, there have been no liabilities incurred since December 31, 2016 for which any Debtor has any liabilities, whether individual or in the aggregate, whether absolute,
accrued, contingent or otherwise, of a type required to be disclosed on a balance sheet prepared in accordance with GAAP other than in the ordinary course of business or as set forth in the Company’s Exchange Act Documents. 

Section 3.34 No Registration Rights. Except as will be expressly provided in the Registration Rights Agreement, no person
shall have the right to require the Company, New Seadrill or any of their Subsidiaries to register any of its respective capital stock for sale under the Securities Act. 

Section 3.35 Alternative Restructuring Proposals. As of the date hereof, the Debtors are not party to any binding
commitment to pursue, implement or effectuate any Alternative Restructuring Proposal. 
 Section 3.36 Execution of the
RSA. Solely with respect to any Company Party that is formed following the date hereof, such Company Party has, concurrently with its execution of the Joinder Agreement, executed a joinder agreement to the Restructuring Support and Lock-Up Agreement. 
 Section 3.37 EY Paper. As of the Closing Date, the EY Paper is
in a form consistent with the Term Sheets and does not give rise to a new Tax liability which has a Material Adverse Effect on the Company Parties. 

ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF THE COMMITMENT PARTIES 

Each Commitment Party, severally and not jointly, represents and warrants to the Company and other Company Parties as to
itself only as of the date of this Agreement and the Closing Date as set forth below. 
 Section 4.1 Organization. Such
Commitment Party is a legal entity duly organized, validly existing and, if applicable, in good standing (or the equivalent thereof) under the Laws of its jurisdiction of incorporation or organization. 

Section 4.2 Organizational Power and Authority. Such Commitment Party has the requisite power and authority (corporate or
otherwise) to enter into, execute and deliver this Agreement and each of the other Commitment Party Agreements, to perform its obligations hereunder and thereunder, and has taken all necessary action (corporate or otherwise) required for the due
authorization, execution, delivery and performance by it of this Agreement and the other Commitment Party Agreements. 

Section 4.3 Execution and Delivery. This Agreement and each other Commitment Party Agreement (a) has been, or prior
to its execution and delivery will be, duly and validly executed and delivered by such Commitment Party and (b) assuming due and valid 

  
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execution and delivery hereof and thereof by the Company and the other Debtors, as applicable, will constitute valid and legally binding obligations of such Commitment Party, enforceable against
such Commitment Party in accordance with their respective terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or other similar Laws limiting creditors’ rights generally or by equitable principles relating to
enforceability. 
 Section 4.4 No Conflict. Assuming that the consents referred to in clauses (a) and (b) of
Section 4.5 are obtained, the execution and delivery by such Commitment Party of this Agreement and each other Commitment Party Agreement to which such Commitment Party is a party, the compliance by such Commitment Party
with all of the provisions hereof and thereof and the consummation of the transactions contemplated herein and therein (a) will not conflict with, or result in breach, modification, termination or violation of, any of the terms or provisions
of, or constitute a default under (with or without notice or lapse of time or both), or result in the acceleration of, or the creation of any Lien under any Contract to which such Commitment Party is a party or is bound or to which any of the
property or assets of such Commitment Party are subject, (b) will not result in any violation of the provisions of the certificate of incorporation or bylaws (or comparable constituent documents) of such Commitment Party and (c) will not
result in any material violation of any Law or Order applicable to such Commitment Party or any of its properties, except in each of the cases described in clauses (a), (b) or (c), for any conflict, breach, modification, termination, violation,
default, acceleration or Lien which would not reasonably be expected, individually or in the aggregate, to prohibit or materially and adversely impact such Commitment Party’s performance of its obligations under this Agreement. 

Section 4.5 Consents and Approvals. No consent, approval, authorization, Order, registration or qualification of or with
any Governmental Entity having jurisdiction over such Commitment Party or any of its properties is required for the execution and delivery by such Commitment Party of this Agreement and each other Commitment Party Agreement to which such Commitment
Party is a party, the compliance by such Commitment Party with the provisions hereof and thereof and the consummation of the transactions contemplated herein and therein, except (a) any consent, approval, authorization, Order, registration or
qualification which, if not made or obtained, would not reasonably be expected, individually or in the aggregate, to prohibit or materially and adversely impact such Commitment Party’s performance of its obligations under this Agreement and
each other Commitment Party Agreement to which such Commitment Party is a party and (b) filings, notifications, authorizations, approvals, consents, clearances or termination or expiration of all applicable waiting periods under any Antitrust
Laws in connection with the transactions contemplated by this Agreement. 
 Section 4.6 No Registration. Such
Commitment Party understands as applicable that (a) none of the Acquired Debt Securities and the Acquired Equity Securities have been registered under the Securities Act by reason of a specific exemption from the registration provisions of the
Securities Act, the availability of which depends on, among other things, the bona fide nature of the investment intent and the accuracy of such Commitment Party’s representations as expressed herein or otherwise made pursuant hereto and
(b) the foregoing securities cannot be sold unless subsequently registered under the Securities Act or in compliance with an exemption from registration available under the Securities Act and under the securities laws of any applicable
jurisdiction. 

  
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 Section 4.7 Purchasing Intent. Such Commitment Party is acquiring the
Acquired Debt Securities or Acquired Equity Securities, as applicable, for its own account or accounts or funds over which it holds voting discretion, not otherwise as a nominee or agent, and not otherwise with the view to, or for resale in
connection with, any distribution thereof not in compliance with applicable securities Laws in the United States or any applicable jurisdiction, and such Commitment Party has no present intention of selling, granting any other participation in, or
otherwise distributing the same, except in compliance with applicable securities Laws in the United States or any applicable jurisdiction. 

Section 4.8 Sophistication; Investigation. Such Commitment Party has such knowledge and experience in financial and
business matters such that it is capable of evaluating the merits and risks of its investment in the Acquired Debt Securities or Acquired Equity Securities, as applicable. Such Commitment Party is (a) an “accredited investor” within
the meaning of Rule 501(a) of Regulation D under the Securities Act, (b) a “qualified institutional buyer” within the meaning of Rule 144A of the Securities Act, (c) a non-U.S.
person under Regulation S under the Securities Act and/or (d) the foreign equivalent of (a) or (b) above. Such Commitment Party understands and is able to bear any economic risks associated with such investment (including the necessity of
holding such shares for an indefinite period of time). Except for the representations and warranties expressly set forth in this Agreement or any other Transaction Agreement, such Commitment Party has independently evaluated the merits and risks of
its decision to enter into this Agreement and disclaims reliance on any representations or warranties, either express or implied, by or on behalf of any of the Debtors. 

Section 4.9 No Broker’s Fees. Except as set forth in Article IX, such Commitment Party is
not a party to any Contract with any Person that would give rise to a valid claim against any of the Debtors for a brokerage commission, finder’s fee or like payment in connection with the Rights Offerings or the sale of the Acquired Debt
Securities or the Equity Securities. 
 Section 4.10 Sufficient Funds. Such Commitment Party has sufficient available
cash and the financial capacity to perform all of its obligations under this Agreement, including as applicable to the Debt Commitment Parties, the ability to fund such Debt Commitment Party’s Debt Commitment, and, as applicable to the Equity
Commitment Parties, the ability to fund such Equity Commitment Party’s Equity Commitment. 
 ARTICLE V 

ADDITIONAL COVENANTS 

Section 5.1 Conduct of Business. 

(a) Except as expressly set forth in this Agreement, the Restructuring Support and
Lock-Up Agreement, the Plan or with the prior written consent of the Required Commitment Parties, during the period from the date of this Agreement to the earlier of the Closing Date and the date on which this
Agreement is terminated in accordance with its terms (the “Pre-Closing Period”), (a) the Company shall, and shall cause each of New Seadrill, NSNCo, its Subsidiaries and the other
Debtors to, carry on its business in the ordinary course and use its commercially reasonable efforts to: (i) preserve intact its business, (ii) preserve its material relationships with 

  
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customers, suppliers, licensors, licensees, distributors and others having material business dealings with any of the Company, New Seadrill, NSNCo, their Subsidiaries and the other Debtors in
connection with their business, (iii) file Company SEC Documents within the time periods required under the Exchange Act, in the case of (i), (ii) and (iii) above, in accordance with ordinary course practices, and (iv) to comply with
and give effect to this Agreement, the Restructuring Support and Lock-Up Agreement and the Plan and the transactions contemplated thereby and (b) each of the Company, New Seadrill, NSNCo, their
Subsidiaries and the other Debtors shall not enter into any transaction that is material to their business, including: (v) sell, convey, transfer, dispose of, charge, pledge or otherwise encumber the NSN Collateral, (w) make any equity
investment (including by way of merger, consolidation or acquisition) in any other Person, (x) except in the ordinary course of business, amend, renew, terminate, execute, cancel, waive, fail to renew, release or relinquish in any respect, any
Material Contract or enter into any new contract that would have been a Material Contract, if it had existed on the date hereof, including any new or existing Charter Contract or new-build contract with any
shipyards whether or not such contract satisfied the definition of a Material Contract, (y) make, change or revoke any material election related to Taxes inconsistent in material respects with past practice (other than as contemplated by the
Restructuring Transactions) or prepare any Tax Return in a manner that is inconsistent in material respects with past practice with respect to the treatment of items on such Tax Return, in each case, to the extent such action could reasonably be
expected to have a disproportionately negative Tax consequence in the period following the Closing; provided, however, that this Section 5.1(a)(b)(y) shall be inapplicable with respect to any Subsidiary of the
Company that the Company (or an entity controlled by the Company) does not control or manage with respect to Tax matters; provided further, however, that notwithstanding anything else in this Agreement to the contrary, the Company and its
applicable Subsidiaries shall be permitted to elect to participate in the “amnesty” program with respect to Brazilian tax issues disclosed in Schedule 1 Part C of the Company Parties’ Disclosure Schedules or otherwise settle such
Brazilian tax issues in a manner consistent with the information referenced in Section 1.1 of Schedule 1 Part C of the Company Parties’ Disclosure Schedules or (z) knowingly take any action that would invalidate or cause the
cancellation of any current material insurance coverage (without replacement thereof) or fail to maintain current material insurance coverage or suitable renewals thereof providing coverage substantially the same as any expiring policy; other than
(A) transactions after prior notice to the Commitment Parties to implement tax planning which transactions are not reasonably expected to materially adversely affect any Commitment Party and (B) transactions expressly contemplated by the
Definitive Documents. Except as otherwise provided in this Agreement, nothing in this Agreement shall give the Commitment Parties, directly or indirectly, any right to control or direct the operations of the Company, New Seadrill, NSNCo, their
Subsidiaries and the other Debtors. Prior to the Closing Date, the Company, New Seadrill, NSNCo, their Subsidiaries and the other Debtors shall exercise, consistent with the terms and conditions of this Agreement, complete control and supervision of
their respective businesses. 
 (b) Notwithstanding Section 5.9(a), the Company, New Seadrill,
NSNCo, their Subsidiaries and the other Debtors are not in any event prevented from, and in no event shall need consent from the Commitment Parties to (in each case, as reasonably determined by an executive officer of the Company, New Seadrill,
NSNCo, their Subsidiaries and the other Debtors): (i) take any action to prevent, address or mitigate the effects of any environmental release or hazard, any occupational health, safety and welfare hazard, or any emergency; (ii) take

  
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or refrain from taking any action on any matter as may be required to give effect to any provision of this Agreement or otherwise provided for in this Agreement or to comply with applicable Laws;
(iii) take any action to prevent or mitigate injury or damage to any Person or property or otherwise take any commercially reasonable action in response to a business emergency or other unforeseen operational matters; or (iv) take or
refrain from taking any action in accordance with prudent practices for an offshore oilfield services business or a company operating under the Bankruptcy Code. 

Section 5.2 Other Covenants and Agreement Regarding Disclosure and Effectuation and Implementation of the Restructuring
Transactions. Without prejudice to the generality of the foregoing, the Company (on behalf of itself and the Company’s Subsidiaries, including New Seadrill and NSNCo, when formed and as applicable) agrees:  
 (a) as soon as reasonably practicable following the date of this
Agreement (i) to file the Plan and the Disclosure Statement with the Bankruptcy Court, each in form and substance reasonably satisfactory to the Company and the Required Commitment Parties; (ii) to seek the entry of the Disclosure
Statement Order by the Bankruptcy Court, in form and substance reasonably acceptable to the Company and the Required Commitment Parties; (iii) to seek the entry of the Confirmation Order by the Bankruptcy Court, in form and substance reasonably
acceptable to the Company and the Required Commitment Parties and (iv) to otherwise seek to satisfy the milestones set forth herein. The Company will provide draft copies of the Definitive Documents, including the Plan and the Disclosure
Statement to the Commitment Parties, to the extent required under the Restructuring Support and Lock-Up Agreement or this Agreement. 

(b) to use commercially reasonable efforts to have the Resale Registration Statement covering the sale, resale or other
distribution of the Equity Securities issued to the Commitment Parties pursuant to the terms and conditions hereunder and in connection with the Rights Offerings filed with the SEC in accordance with the Registration Rights Agreement within five
(5) Business Days following the entry of the Confirmation Order (the “Registration Statement Filing Date”). 

(c) to use commercially reasonable efforts to have the Resale Registration Statement covering the sale, resale or other
distribution of the Equity Securities described in Section 5.2(b) declared effective by the SEC in accordance with the Registration Rights Agreement (the “Registration Statement Effectiveness”) and
to effectuate the transactions set forth in the Registration Rights Agreement as soon as reasonably practicable following the Registration Statement Filing Date. 

(d) as soon as reasonably practicable following the entry of the Confirmation Order and prior to the Effective Date to submit
listing applications to the Oslo Stock Exchange and the New York Stock Exchange for the listing thereon of the Equity Securities and to use commercially reasonable efforts (i) to cause the Equity Securities to be listed on the Oslo Stock
Exchange, and (ii) to cause the Equity Securities to be listed on the New York Stock Exchange and registered under the Exchange Act concurrently with the Registration Statement Effectiveness. 

  
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 (e) as soon as reasonably practicable following the entry of the Disclosure
Statement and prior to the Effective Date to effectuate the Rights Offerings in accordance with the Plan and the Rights Offering Procedures. 

(f) to (i) deliver the final version of the Offering Memorandum as soon as practicable and on a date that is no later than
the effective date of the Resale Registration Statement and (ii) within 15 Business Days of written notice from the Required Commitment Parties, to deliver an updated Offering Memorandum so that the financial statements and other information
therein does not become stale under the rules and regulations of the Securities Act and the Exchange Act; provided, however, that the Required Commitment Parties may only request (and have the right to receive) an updated Offering
Memorandum three (3) times. 
 (g) to notify the Commitment Parties within one (1) Business Day of any terminations
of the Restructuring Support and Lock-Up Agreement by any Consenting Lender. 
 (h)
as soon as reasonably practicable following the entry of the Confirmation Order, take all actions necessary to deliver the NSN Collateral to the Collateral Agent on the terms set forth in the New Secured Notes Term Sheet on the Closing Date. 

Section 5.3 New Secured Notes DTC Eligibility. The Company will ensure, and cause NSNCo to ensure, that upon issuance
thereof and while outstanding, the New Secured Notes shall be eligible for clearance and settlement through the facilities of DTC, and be evidenced by one or more global notes to be issued in the name of Cede & Co., as nominee for DTC,
pursuant to the DTC Agreement and do all other things necessary and appropriate to give effect to the foregoing provisions.  

Section 5.4 Use of Proceeds. All funds paid by the Commitment Parties in connection with the issuance of the New Secured
Notes and the Equity Securities, without any deductions for fees or expenses, shall be used by the Company, New Seadrill and their Subsidiaries as set forth in the Restructuring Support and Lock-Up Agreement,
the Plan and the Disclosure Statement. 
 Section 5.5 Cooperation Regarding Security. The Company, New Seadrill and
their Subsidiaries shall cooperate with the Commitment Parties in creating, perfecting and evidencing all security interests, mortgages, encumbrances and Liens on the NSN Collateral securing the New Secured Notes pursuant to the Security Documents.

 Section 5.6 New Board of Managers. On the Effective Date, the composition of the board of managers (or directors, if
applicable) of the Company and/or New Seadrill shall be as set forth in the Board Governance Term Sheet and subject to the applicable consultation rights as set forth therein. 

Section 5.7 Access to Information; Confidentiality. 

(a) Subject to applicable Law and Section 5.7(b), upon reasonable notice during the Pre-Closing Period, the Company, New Seadrill, NSNCo, their Subsidiaries and the other Debtors shall afford the Commitment Parties and their Representatives upon request reasonable access, during normal business
hours and without unreasonable disruption or interference with the Company, New Seadrill, NSNCo, their Subsidiaries and the other Debtors 

  
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business or operations, to their employees, properties, books, Contracts and records and, during the Pre-Closing Period, the Company, New Seadrill, NSNCo,
their Subsidiaries and the other Debtors shall furnish promptly to such parties all reasonable information concerning the Company, New Seadrill, NSNCo, their Subsidiaries and the other Debtors’ business, properties and personnel as may
reasonably be requested by any such party, provided that the foregoing shall not require the Company, New Seadrill, NSNCo, their Subsidiaries and the other Debtors (i) to permit any inspection, or to disclose any information, that in the
reasonable judgment of the Company, would cause any of the Company, New Seadrill, NSNCo, their Subsidiaries and the other Debtors to violate any of their respective obligations with respect to confidentiality to a third party if the Company used its
commercially reasonable efforts to obtain, but failed to obtain, the consent of such third party to such inspection or disclosure, (ii) to disclose any legally privileged information of any of the Company, New Seadrill, NSNCo, their
Subsidiaries and the other Debtors or (iii) to violate any applicable Laws or Orders. All requests for information and access made in accordance with this Section 5.7 shall be directed to an executive officer of the
Company or such Person as may be designated by the Company’s executive officers. 
 (b) From and after the date hereof
until the date that is one (1) year after the expiration of the Pre-Closing Period, each Commitment Party shall, and shall cause its Representatives to, (i) keep confidential and not provide or
disclose to any Person any documents or information received or otherwise obtained by such Commitment Party or its Representatives pursuant to Section 5.1 and Section 5.7(a) or in connection with a
request for approval pursuant to Section 5.1 (except that provision or disclosure may be made to any Affiliate or Representative of such Commitment Party who needs to know such information for purposes of this Agreement or
the other Definitive Documents or transactions contemplated hereby or thereby and who agrees to observe the terms of this Section 5.7(b) (and such Commitment Party will remain liable for any breach of such terms by any such
Affiliate or Representative)), and (ii) not use such documents or information for any purpose other than in connection with this Agreement or the other Definitive Documents, the transactions contemplated hereby or thereby or in connection with
their stake in the Company, New Seadrill, NSNCo, their Subsidiaries and the other Debtors. Notwithstanding the foregoing, the immediately preceding sentence shall not apply in respect of documents or information that (A) is now or subsequently
becomes generally available to the public through no violation of this Section 5.7(b), (B) becomes available to a Commitment Party or its Representatives on a non-confidential
basis from a source other than any of the Debtors or any of their respective Representatives, (C) becomes available to a Commitment Party or its Representatives through document production or discovery in connection with the Chapter 11
Cases and/or Ancillary Proceedings or other judicial or administrative process, but subject to any confidentiality restrictions imposed by the Chapter 11 Cases and/or Ancillary Proceedings or other such process, or (D) such Commitment
Party or any Representative thereof is required to disclose by any court or governmental, banking, taxation or other regulatory authority or similar body, or by the rules of any relevant stock exchange or pursuant to a request by any such body with
which a person in a position similar to that of a Commitment Party would be reasonably expected to comply, or pursuant to any applicable law or regulation; provided that such Commitment Party or such Representative shall provide the Company
with prompt written notice of such compulsion and cooperate with the Company to obtain a protective Order or similar remedy to cause such information or documents not to be disclosed, including interposing all available objections thereto, at the
Company’s sole cost and expense; provided, further, that, in the event that such 

  
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protective Order or other similar remedy is not obtained, the disclosing party shall furnish only that portion of such information or documents that is legally required to be disclosed and shall
exercise its commercially reasonable efforts (at the Company’s sole cost and expense) to obtain assurance that confidential treatment will be accorded such disclosed information or documents. The provisions of this
Section 5.7(b) shall not apply to any Commitment Party that, as of the date hereof, is party to a confidentiality or non-disclosure agreement with the Debtors, for so long as such
agreement remains in full force and effect and which shall continue to govern the confidentiality obligations in respect of the parties thereto. 

(c) Notwithstanding the foregoing and anything to the contrary in this Agreement, after the Closing Date (i) the Company
(on behalf of itself, New Seadrill, NSNCo, their Subsidiaries and the other Debtors) agrees that all the information provided by or on behalf of each of the Company, New Seadrill, NSNCo, their Subsidiaries, the other Debtors and their affiliates to
the Commitment Parties regarding the Company, New Seadrill, NSNCo, their Subsidiaries and the other Debtors and their affiliates and the Restructuring Transactions contemplated by this Agreement may be disseminated by or on behalf of the Commitment
Parties to prospective purchasers of the New Secured Notes and other persons, who have agreed to be bound by customary confidentiality and standstill agreements and (ii) the Company (on behalf of itself, New Seadrill, NSNCo, their Subsidiaries
and the other Debtors) agrees that the Commitment Parties may disclose information relating to the New Secured Notes to industry publications or for its marketing materials, with such information to consist of deal terms and other information
customarily found in such publications or marketing materials and that the Commitment Parties may otherwise use the corporate name and logo of the Company or its affiliates in “tombstones” or other advertisements, marketing materials or
public statements. 
 (d) Prior to the Closing, the Company shall provide the Commitment Parties: 

(i) the pro forma capital and ownership structure and the shareholder arrangements of the Company
Parties after giving effect to the Restructuring Transactions, including, without limitation, their charter and by-laws and each agreement or instrument relating thereto; 

(ii) the issuer, amount, ranking, tenor and other terms and conditions of, as well as the holders of,
(A) all equity and other debt financings comprising part of the Restructuring Transactions, including the issuance of the Equity Securities and (B) all material intercompany indebtedness and all material indebtedness and other material
liabilities of the Company Parties to third parties that are to remain outstanding following the Closing Date; 

(iii) evidence of lien searches on the NSN Collateral reasonably requested by the Required Commitment Parties
and conducted no more than 15 days before the Closing; provided, that for the avoidance of doubt, the lien searches need not say the NSN Collateral is free from Liens and the NSN Collateral shall be consistent with the terms set forth in the New
Secured Notes Term Sheet; 

  
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 (iv) a list of the amount, types and terms and conditions of all
material insurance maintained by the Company Parties, and endorsements naming the Collateral Agent, on behalf of the holders of the New Secured Notes, as an additional insured or loss payee, as the case may be, under all material insurance policies
to be maintained with respect to the properties of the Company Parties forming part of the NSN Collateral; 

(v) copies of the interim unaudited balance sheet, income statement and statement of cash flow for the Company
and its consolidated Subsidiaries for each month ending between the date hereof and the Closing; provided that no such financial statements will be due for the month during which Closing occurs or the preceding month to the extent Closing occurs
within 30 Business Days of the beginning of the month; 
 (vi) information sufficient for the Commitment
Parties to perform customary “know your customer,” anti-corruption, anti-money laundering, anti-trust and tax inquiries. 

(e) At the Closing, the Company shall provide the projected quarterly balance sheets, income statements and
statements of cash flows of the Company for the period through the end of remainder of the fiscal year in which Closing occurs and annually thereafter for the period through the maturity of the New Secured Notes, in each case as to the projections,
with the results and assumptions set forth in all of such projections in form and substance reasonably satisfactory to the Commitment Parties, and an opening pro forma balance sheet for the Company Parties. 

Section 5.8 Resale Cooperation. In connection with any Transfer of all or any portion of the Debt Commitments of any Debt
Commitment Party in accordance with Section 2.6(a) or any Transfer by any Debt Commitment Party of New Secured Notes within one year following the Closing Date (each of the foregoing, a “Specified Permitted
Transfer”), if requested by any Debt Commitment Party, upon reasonable advance notice, the Company agrees to use its commercially reasonable efforts to, and to cause its Subsidiaries (including NSNCo) to, assist such Debt Commitment
Party in completing a Specified Permitted Transfer, which assistance shall include, but not be limited to, the following for each Specified Permitted Transfer: (i) a single diligence session via conference call with representatives of the
Company and prospective purchasers of New Secured Notes at a time to be mutually reasonably agreed, which shall include question and answer session based upon customary and reasonable diligence questions submitted by such prospective purchasers a
reasonable period of time in advance of such session; (ii) a single management presentation via conference call at a time to be mutually reasonably agreed with a reasonable opportunity for prospective purchasers of the New Secured Notes to ask
customary and reasonable follow-up questions on such call; (iii) providing reasonable and customary assistance in completion of the prospective purchasers’ due diligence review; and (iv) subject
to Section 5.2(f), delivering to the Debt Commitment Party an Offering Memorandum sufficient to assist the Debt Commitment Party with any Transfer of New Secured Notes, and in case of (i), (ii) or (iii), pursuant to the
terms of a customary nondisclosure agreement on terms reasonably satisfactory to the Company in the event any material nonpublic information is required to be provided by the Company. 

  
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 Section 5.9 Commercially Reasonable Efforts. 

(a) Without in any way limiting any other respective obligation of the Company or any Commitment Party in this Agreement,
each Party shall use (and the Company shall cause New Seadrill, NSNCo, their Subsidiaries and the other Debtors to use) commercially reasonable efforts to take or cause to be taken all actions, and do or cause to be done all things, reasonably
necessary, proper or advisable in order to consummate and make effective the transactions contemplated by this Agreement, including, as applicable, using commercially reasonable efforts in: 

(i) timely preparing and filing all documentation reasonably necessary to effect all necessary notices, reports
and other filings of such Person and to obtain as promptly as practicable all consents, registrations, approvals, permits and authorizations necessary or advisable to be obtained from any third party or Governmental Entity; 

(ii) defending any Legal Proceedings in any way challenging (A) this Agreement, the Restructuring Support
and Lock-Up Agreement, the Registration Rights Agreement or any other Transaction Agreement, or (B) the consummation of the transactions contemplated hereby and thereby, including seeking to have any stay
or temporary restraining Order entered by any Governmental Entity vacated or reversed; and 
 (iii) working
together in good faith to finalize the New Seadrill Organizational Documents, Definitive Documents not already finalized as of the Investment Agreement Effective Date and all other documents relating thereto in a form consistent with the Term Sheets
and for timely inclusion in the Plan Supplement and filing with the Bankruptcy Court, as applicable. 

Notwithstanding the foregoing, nothing in this Section 5.9(a) shall require any Commitment Party to
incur any expenses or liabilities, or agree to any commitments, undertakings, concessions, indemnities or other arrangements that could result in any material expenses or liabilities to any Commitment Party; provided, however, that nothing herein
shall serve to limit, alter or modify any Commitment Party’s express obligations under the terms of this Agreement. 

(b) Subject to Laws or applicable rules relating to the exchange of information, and in accordance with the Restructuring
Support and Lock-Up Agreement, the Commitment Parties and the Company shall have the right to the extent reasonably practicable to review in advance, and to the extent reasonably practicable each will consult
with the other on, all of the material information relating to Commitment Parties or the Company, as the case may be, and any of their respective Subsidiaries, that appears in any filing made with, or written materials submitted to, any Governmental
Entity in connection with the transactions contemplated by this Agreement or the Plan; provided, however, that the Parties are not required to provide for review in advance declarations or other evidence submitted in connection with
any filing with the Bankruptcy Court. In exercising the foregoing rights, the Parties shall act as reasonably and as promptly as practicable. 

(c) Without limitation to Section 5.1 or Section 5.7, the Company shall
(i) provide counsel for the Commitment Parties a reasonable opportunity to review draft copies of all First Day Pleadings prior to filing with the Bankruptcy Court and, (ii) to the extent reasonably practicable, provide a reasonable
opportunity to counsel for the Commitment Parties to review draft copies of other documents that the Debtors intend to file with the Bankruptcy Court that materially affect the Commitment Parties or that are contemplated by the Restructuring Support
and Lock-Up Agreement, or relate to this Agreement or the Plan. 

  
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 (d) Nothing contained in this Section 5.9 shall limit
the ability of any Commitment Party to consult with the Company, to appear and be heard, or to file objections, concerning any matter arising in the Chapter 11 Cases to the extent not inconsistent with the Restructuring Support and Lock-Up Agreement. 
 Section 5.10 Registration Rights. The Commitment Parties are
entitled to registration rights pursuant to a registration rights agreement relating to the Equity Securities to be entered into as of the date of the entry of the Confirmation Order, as outlined in the term sheet set forth in Schedule 3 (the
“Registration Rights Agreement”). The form of the Registration Rights Agreement shall be filed with the Bankruptcy Court as part of the Plan Supplement. 

Section 5.11 Equity Securities DTC Eligibility. Unless otherwise requested by the Required Commitment Parties, NSNCo and
New Seadrill shall use commercially reasonable efforts to promptly make, when applicable from time to time after the Closing, all Unlegended Securities eligible for deposit with DTC. “Unlegended Securities” means any Equity
Securities acquired by the Commitment Parties and their respective Affiliates (including any Ultimate Purchaser in respect thereof) pursuant to this Agreement and the Plan, including all Equity Securities issued to the Equity Commitment Parties and
Rights Offering Participants, as applicable, that do not require, or are no longer subject to, the Legend. 

Section 5.12 Share Legend. Each certificate evidencing an Equity Security, and each certificate issued in exchange for or
upon the Transfer of any such security, shall be stamped or otherwise imprinted with a legend (the “Legend”) in substantially the following form: 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE WERE ORIGINALLY ISSUED ON [DATE OF ISSUANCE], HAVE NOT BEEN REGISTERED UNDER THE UNITED
STATES SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY OTHER APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN AVAILABLE EXEMPTION FROM
REGISTRATION THEREUNDER.” 
 In the event that any such securities are uncertificated, such shares shall be subject to a restrictive
notation substantially similar to the Legend in the stock ledger or other appropriate records maintained by New Seadrill or agent and the term “Legend” shall include such restrictive notation. New Seadrill shall remove the Legend (or
restrictive notation, as applicable) set forth above from the certificates evidencing any such shares (or the share register or other appropriate New Seadrill records, in the case of uncertified shares), upon request, at any time after the
restrictions described in such Legend cease to be applicable, including, as applicable, when such shares may be sold under Rule 144 of the Securities Act. New Seadrill may reasonably request such opinions, certificates or other evidence that such
restrictions no longer apply as a condition to removing the Legend. 

  
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 Section 5.13 Antitrust Approval. 

(a) Each Party agrees to use its commercially reasonable efforts to take, or cause to be taken, all actions and to do, or
cause to be done, all things necessary to consummate and make effective the transactions contemplated by this Agreement, the Plan and the other Definitive Documents, including (i) if applicable, filing, or causing to be filed, the Notification
and Report Form pursuant to the HSR Act with respect to the transactions contemplated by this Agreement with the Antitrust Division of the United States Department of Justice and the United States Federal Trade Commission and any filings (and, if
required by any Antitrust Authority, any drafts thereof) under any other Antitrust Laws that are necessary to consummate and make effective the transactions contemplated by this Agreement as soon as reasonably practicable (and with respect to any
filings required pursuant to the HSR Act, no later than fifteen (15) Business Days following entry of the Disclosure Statement Order) and (ii) promptly furnishing any documents or information reasonably requested by any Antitrust
Authority. Notwithstanding the foregoing, no Commitment Party shall be under any obligation to effect any disposals, sales or transfers of any of its other businesses or assets or to incur any material financial or other liabilities, other than as
expressly agreed hereunder in order to comply with its obligations hereunder. 
 (b) The Company and each Commitment Party
subject to an obligation pursuant to the Antitrust Laws to notify any transaction contemplated by this Agreement, the Plan or the other Definitive Documents (each such Commitment Party, a “Filing Party”) agree to notify each
other in writing of such obligations as soon as possible and to reasonably cooperate with each other as to the appropriate time of filing such notification and its content. The Company and each Filing Party shall, to the extent permitted by
applicable Law: (i) promptly notify each other of, and if in writing, furnish each other with copies of (or, in the case of material oral communications, advise each other orally or in writing of) any material communications from or with an
Antitrust Authority; (ii) not participate in any substantive meeting with an Antitrust Authority unless it consults with each other Filing Party and the Company, as applicable, in advance and, to the extent permitted by the Antitrust Authority
and applicable Law, give each other Filing Party and the Company, as applicable, a reasonable opportunity to attend and participate thereat; (iii) furnish each other Filing Party and the Company, as applicable, with copies of all material
correspondence and communications between such Filing Party or the Company and the Antitrust Authority; (iv) provide copies of all draft filings and submissions in advance and give each other Filing Party and the Company, as applicable, a
reasonable opportunity to comment on the same, such comments to be taken into account where reasonable, except that sharing of copies of filings made under the HSR Act shall not be required; (v) furnish each other Filing Party with such
necessary information and reasonable assistance as may be reasonably necessary in connection with the preparation of necessary filings or submission of information to the Antitrust Authority; and (vi) not withdraw its filing, if any, under the
HSR Act or other applicable Antitrust Laws without the prior written consent of the Required Commitment Parties and the Company. 

(c) Should a Filing Party be subject to an obligation under the Antitrust Laws to jointly notify with one or more other Filing
Parties (each, a “Joint Filing Party”) any transaction contemplated by this Agreement, the Plan or the other Definitive Documents, such Joint Filing Party shall promptly notify each other Joint Filing Party of, and if in
writing, furnish each other Joint Filing Party with copies of (or, in the case of material oral communications, advise each other Joint Filing Party orally of) any substantive communications from or with an Antitrust Authority. 

  
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 (d) The Company and each Filing Party shall use their commercially reasonable
efforts to obtain all authorizations, approvals, consents, or clearances under any applicable Antitrust Laws or to cause the termination or expiration of all applicable waiting periods under any Antitrust Laws in connection with the transactions
contemplated by this Agreement at the earliest possible date after the date of filing, including providing information, proposing, negotiating, committing to and/or effecting, by consent decree, hold separate orders, or otherwise, the sale,
divesture or disposition of, or holding separate (through the establishment of a trust or otherwise) of any assets, properties or businesses as are required to be divested in order to avoid the entry of, or to effect the dissolution of, any decree,
order, judgment, injunction, temporary restraining order or other order in any suit or proceeding, which would otherwise have the effect of materially delaying or preventing the consummation of the transaction contemplated hereby or that would
otherwise make the consummation of such transaction unlawful. The communications contemplated by this Section 5.13 may be made by the Company or a Filing Party on an outside counsel-only basis or subject to other agreed
upon confidentiality safeguards. The obligations in this Section 5.13 shall not apply to filings, correspondence, communications or meetings with Antitrust Authorities unrelated to the transactions contemplated by this
Agreement, the Plan or the other Definitive Documents. 
 Section 5.14 New Seadrill and New Structure. 

(a) The Company shall form New Seadrill, shall transfer all of the Company’s assets to New Seadrill and shall
liquidate the Company through Bermuda dissolution proceedings, in each case in a manner that is reasonably satisfactory to the Required Commitment Parties. 

(b) The Company shall form IHCo, NSNCo and other wholly owned entities required to be formed pursuant to the Plan, the Plan
Supplement and the Restructuring Support and Lock-Up Agreement and shall give effect to the corporate restructuring transactions contemplated in the Plan, the Plan Supplement and the Restructuring Support and Lock-Up Agreement in a manner that is reasonably satisfactory to the Required Commitment Parties. 

(c) Each of New Seadrill, IHCo, NSNCo and other wholly owned entities required to be formed pursuant to
Section 5.14 shall, immediately upon formation, execute a joinder to this Agreement pursuant to an agreement in substantially the form attached as Schedule 2 hereto and a joinder to the Plan and
the Restructuring Support and Lock-Up Agreement. 
 Section 5.15 Go Shop. 

(a) Notwithstanding anything to the contrary in this Agreement, each Company Party and their respective directors, officers,
employees, investment bankers, attorneys, accountants, consultants, and other advisors or representatives: 

(i) from the date of this Agreement until the entry of the Confirmation Order (but, for the avoidance of doubt,
not thereafter): 

  
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 (A) shall not solicit, initiate, encourage, or induce Alternative
Restructuring Proposals except as provided in this Agreement and the Restructuring Support and Lock-Up Agreement; and 

(B) shall have the rights to (1) consider, respond to, and facilitate Alternative Restructuring Proposals;
(2) provide access to non-public information concerning any Company Party to any Person or enter into confidentiality agreements or nondisclosure agreements with any Person; (3) maintain or continue
discussions or negotiations with respect to Alternative Restructuring Proposals, including those received pursuant to clause (b) of this Section 5.15; (4) otherwise cooperate with, assist, participate in, or
facilitate any inquiries, proposals, discussions, or negotiation of Alternative Restructuring Proposals; and (5) enter into or continue discussions or negotiations with holders of Claims against or equity interests in a Company Party regarding
the Restructuring Transactions or Alternative Restructuring Proposals; and 
 (ii) from the date of this
Agreement until 90 days after the Petition Date, shall have the rights to solicit, initiate, encourage, or induce Alternative Restructuring Proposals from any Person. 

(b) Before the Company Parties determine in the exercise of their fiduciary duties to enter into, or to seek authorization from
the Bankruptcy Court to enter into, a commitment with respect to any Alternative Restructuring Proposal, they shall negotiate with the Commitment Parties in good faith (to the extent that the Commitment Parties so desire) with respect to any changes
proposed by the Commitment Parties to the terms of the Restructuring Transaction. As soon as reasonably practicable after entry into any Alternative Restructuring Proposal, the Company Parties will publicly disclose such Alternative Restructuring
Proposal by filing the material documentation thereof with the Bankruptcy Court or otherwise. 
 Section 5.16 Business
Update Conference Calls. During the Pre-Closing Period, the Company shall participate in weekly (or as may be agreed to between the Company and the Commitment Parties) calls with the Commitment Parties and
their financial advisors regarding (i) the Company’s business, including current industry conditions, Company operations and business projections; and (ii) the status and progress of the implementation of the Restructuring
Transactions, including the Chapter 11 Cases, the Company’s efforts with respect to any Alternative Restructuring Proposals (which may, in the Company Parties’ discretion, be on a no-name basis
without any requirement to disclose the terms thereof) and the Company’s efforts with respect to confirmation of the Plan.  

Section 5.17 Financial Information. During the Pre-Closing Period, the Company
shall deliver to the counsel and financial advisors to the Commitment Parties, and to each Commitment Party that so requests (i) a copy of each update to the Company’s business plan as soon as reasonably practicable after it becomes
available, together with a reconciliation to the prior business plan; (ii) promptly, but in any event no later than the thirtieth (30th) day of each calendar month, a financial report for the Company and each of the Non-Consolidated Entities as of the last day of the preceding calendar month, in form and detail reasonably acceptable to the Commitment Parties, (iii) within three (3) business days after the receipt

  
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thereof, any information relating to the amendment, renewal, termination, execution, cancellation, waiver, failure to renew, release or relinquishment of the Company’s rights under any new
or existing Charter Contract or new-build contract with any shipyards and (iv) such other reports and information as the Commitment Parties may reasonably request. 

Section 5.18 Further Assurances. Without in any way limiting any other obligation of the Company, New Seadrill or any of
their Subsidiaries and any other Debtors in this Agreement, the Company, New Seadrill or any of their Subsidiaries and any other Debtors shall use commercially reasonable efforts to take or cause to be taken all actions, and do or cause to be done
all things, reasonably necessary, and as any Commitment Party may reasonably request, in order to consummate and make effective the transactions contemplated by this Agreement. The Company, New Seadrill or any of their Subsidiaries and any other
Debtors furthermore agree that they shall perform any and all of its covenants, agreements obligations under this Agreement and not take any actions that would be inconsistent with such obligations. 

Section 5.19 Organizational Documents. Subject to compliance with local Law requirements, which the Company and New
Seadrill shall comply with, the Plan will provide that on the Effective Date, the NSNCo Organizational Documents and the New Seadrill Organizational Documents will be duly authorized, approved, adopted and in full force and effect. Forms of the
NSNCo Organizational Documents and the New Seadrill Organizational Documents shall be filed with the Bankruptcy Court as part of the Plan Supplement. 

Section 5.20 Rule 144A Information. For so long as any of the New Secured Notes or the Equity Securities remain
outstanding, the Company and New Seadrill will make available, upon request, to any holder of the New Secured Notes or Equity Securities, as applicable and any prospective purchasers thereof the information specified in Rule 144A(d)(4) under the
Securities Act, unless the Company furnishes such information to the SEC pursuant to Section 13 or 15(d) of the Exchange Act. 

Section 5.21 Tax Treatment. Unless the Company, New Seadrill, NSNCo, and the Debt Commitment Parties mutually agree that
a different treatment is required under applicable law, for all applicable U.S. federal, state and local tax purposes, the Company, New Seadrill, NSNCo and the Debt Commitment Parties agree that, during the 90 day period following the Closing Date,
New Seadrill and NSNCo, in consultation with the Required Commitment Parties, will determine the issue price of the New Secured Notes in accordance with Treas. Reg. §1.1273-2, and without limiting the
foregoing, such parties agree to treat the New Secured Notes and the Granted Equity Securities as an “investment unit” within the meaning of Treas. Reg. §1.1273-2(h) and to allocate the issue
price of such investment unit between the New Secured Notes and the Granted Equity Securities in accordance with such regulations for all applicable U.S. federal, state and local tax purposes. 

  
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 ARTICLE VI 

CONDITIONS TO THE OBLIGATIONS OF THE PARTIES 

Section 6.1 Conditions to the Obligations of the Commitment Parties. The obligations of each Commitment Party to
consummate the transactions contemplated hereby shall be subject to (unless waived in accordance with Section 6.2) the satisfaction of the following conditions on the dates specified herein or if not so specified prior to
or at the Closing: 
 (a) Milestones. The Company complies with, satisfies, or achieves the following deadlines: 

(i) On or prior to 12 September 2017, the Petition Date shall have occurred; 

(ii) On or prior to a date that is forty-five (45) days from the Petition Date, the Company Parties shall
have filed the Disclosure Statement and Plan; 
 (iii) On or prior to a date that is one hundred fifty
(150) days from the Petition Date, the Bankruptcy Court shall have entered the Disclosure Statement Order; 

(iv) On or prior to a date that is two hundred seventy (270) days from the Petition Date, the Bankruptcy
Court shall have entered the Confirmation Order (“Confirmation Order Milestone” and the scheduled date of such Confirmation Order Milestone, the “Confirmation Order Milestone Date”); and 

(v) On or prior to a date that is sixty (60) days from entry of the Confirmation Order, and in any event
within three hundred thirty (330) days from the Petition Date, the Effective Date shall have occurred (the “Outside Date”); 
  

	 	    	 Each of the Orders above, and the Plan, as approved, shall be in a form and substance reasonably acceptable to
the Required Commitment Parties. 

 (b) Representations and Warranties. The representations and
warranties contained in this Agreement shall be true and correct (disregarding all materiality or Material Adverse Effect qualifiers) on both (i) the date hereof and (ii) as of the Closing Date without considering any supplements or
amendments to the Disclosure Schedule after the date hereof (after giving effect to the Plan) with the same effect as if made on and as of the Closing Date (after giving effect to the Plan) (except for such representations and warranties made as of
a specified date, which shall be true and correct only as of the specified date) except, in each of (i) and (ii), where the failure to be so true and correct does not constitute, individually or in the aggregate, a Material Adverse Effect. 

(c) Covenants. The Company Parties shall have performed and complied in all material respects, with all of their
respective covenants and agreements contained in the following agreements, which contemplate, by their terms, performance or compliance prior to or at the Closing and all of the conditions to Closing set forth therein shall have been met or waived
in accordance with their terms: 
 (i) this Agreement; 

(ii) the Restructuring Support and Lock-Up Agreement; 

(iii) the Rights Offering Documents, if applicable; 

  
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 (iv) the Plan; and 

(v) the Plan Supplement.  

(d) Funding Notice. The Commitment Parties shall have received the Funding Notice. 

(e) Approval of the Commitment Parties Each of the Definitive Documents shall contain terms and conditions consistent
with this Agreement and the Restructuring Support and Lock-Up Agreement after giving effect to any amendments or supplements thereto and otherwise be in form and substance, including with respect to any
security arrangements, reasonably acceptable to the Required Commitment Parties. Each of the documents set forth on Schedule 4 shall be in full force and effect and shall not have been terminated. 

(f) Registration Rights Agreement. The Registration Rights Agreement shall have been executed and delivered by the
Company, shall otherwise have become effective with respect to the Commitment Parties and the other parties thereto, and shall be in full force and effect.  

(g) Reorganized Company Organizational Documents. The New Seadrill Organizational Documents and the organizational
documents of its Subsidiaries shall have been duly approved and adopted and shall be in full force and effect. 
 (h)
Material Adverse Effect. Since the date of this Agreement, there shall not have occurred nor shall there exist any Event that constitutes, individually or in the aggregate, a Material Adverse Effect. 

(i) Potential Action. Since the date of this Agreement, there shall not have occurred any action, suit,
investigation or proceeding pending or, to the Knowledge of the Company, threatened in writing in any court or before any arbitrator or governmental authority, in each case, that could reasonably be expected to have a Material Adverse Effect. 

(j) No Default. No default or event of default shall have occurred under any other indebtedness of the
Company Parties, concurrently with or after giving effect to the issuance and sale of the New Secured Notes. 

(k) Restructuring Transactions. The Restructuring Transactions shall be: 

(i) consistent in all material respects with the Restructuring Support and
Lock-Up Agreement and this Agreement; and 
 (ii) consummated
substantially concurrently with the purchase of the New Secured Notes in accordance with Restructuring Support and Lock-Up Agreement and this Agreement. 

(l) Plan and Confirmation Order. The Bankruptcy Court shall have entered the Confirmation Order, which together with the
Plan, shall be in form and substance reasonably satisfactory to the Required Commitment Parties, shall not be stayed, and shall not have been reversed, modified, or otherwise qualify as materially adverse to the Commitment Parties, and the
conditions to the occurrence of the Effective Date of the Plan (other than the Closing of this Agreement) shall have been satisfied or waived in accordance with the terms thereof. 

  
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 (m) No Alternative Restructuring Proposal. The Company shall not be a
party to an agreement to consummate an Alternative Restructuring Proposal. 
 (n) Fees and Expenses. The Incremental
Expenses and the Closing Fee shall have been so paid or reimbursed in accordance with this Agreement; it being understood and agreed that the Closing Fee may be payable by deducting such amount from the Debt Commitment Funding Amount. 

(o) Closing Certificate. The Commitment Parties shall have received on and as of the Closing a certificate of the chief
executive officer or chief financial officer of the Company, in their capacity as such and not in their individual capacity, confirming that the conditions set forth in Section 6.1(b) and
Section 6.1(c) have been satisfied. 
 (p) Registration Statement; Offering Memorandum;
Listing. The Company shall have filed a Resale Registration Statement covering the resale of Equity Securities with the SEC in a form reasonably satisfactory to the Commitment Parties. The Company shall have delivered to the Commitment Parties a
draft of the Offering Memorandum. The Company shall have applied for listing of the Equity Securities on (i) the Oslo Stock Exchange and (ii) the New York Stock Exchange.  

Section 6.2 Waiver of Conditions to Obligations of Commitment Parties. All or any of the conditions set forth in
Section 6.1 may only be waived in whole or in part with respect to all Commitment Parties by a written instrument executed by the Required Commitment Parties in their sole discretion and if so waived, all Commitment Parties
shall be bound by such waiver. 
 Section 6.3 Conditions to the Obligations of the Company. The obligations of the
Company to consummate the transactions contemplated hereby with the Commitment Parties are subject to (unless waived by the Company) the satisfaction of each of the following conditions: 

(a) Representations and Warranties. 

(i) The representations and warranties of the Commitment Parties contained in this Agreement that are qualified
by “materiality” or “material adverse effect” or words or similar import shall be true and correct in all respects on and as of the Closing Date with the same effect as if made on and as of the Closing Date (except for such
representations and warranties made as of a specified date, which shall be true and correct in all respects only as of the specified date). 

(ii) The representations and warranties of the Commitment Parties contained in this Agreement that are not
qualified by “materiality” or “material adverse effect” or words or similar import shall be true and correct in all material respects on and as of the Closing Date with the same effect as if made on and as of the Closing Date
(except for such representations and warranties made as of a specified date, which shall be true and correct in all material respects only as of the specified date). 

  
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 (b) Covenants. The Commitment Parties shall have performed and complied,
in all material respects, with all of their covenants and agreements contained in this Agreement and in any other document delivered pursuant to this Agreement. 

Section 6.4 Conditions to the Obligations of All Parties. The obligations of each of the Parties to consummate the
transactions contemplated hereby are subject to the satisfaction of each of the following conditions (unless waived by all Parties in accordance with Section 6.5): 

(a) Governmental Approvals. All waiting periods imposed by any Governmental Entity or Antitrust Authority in connection
with the transactions contemplated by this Agreement shall have terminated or expired and all authorizations, approvals, consents or clearances under Antitrust Laws or otherwise required by any Governmental Entity in connection with the transactions
contemplated by this Agreement shall have been obtained or filed, unless the absence of such authorizations, approvals, consents, clearances or filings under Antitrust Laws or otherwise would not be material and adverse to the Company Parties’
or the Commitment Parties’ ability to consummate the Restructuring Transaction. 
 (b) No Legal Impediment to
Issuance. No Law or Order shall have become effective or been enacted, adopted or issued by any Governmental Entity that prohibits the implementation of the transactions contemplated by this Agreement or the Plan. 

Section 6.5 Waiver of Conditions to Obligations of All Parties. All or any of the conditions set forth in
Section 6.4 may only be waived in whole or in part by a written instrument executed by the Company and, with respect to all Commitment Parties, the Required Commitment Parties in their sole discretion and if so waived, all
Parties shall be bound by such waiver. 
 ARTICLE VII 

INDEMNIFICATION 

Section 7.1 Indemnification. Upon entry of the Confirmation Order, to the fullest extent permitted by applicable Law, the
Company and its Affiliates (excluding the Commitment Parties) (the “Indemnifying Party”) agrees to indemnify, defend, and hold harmless each of the Commitment Parties and its Affiliates (excluding, for the avoidance of doubt,
the Company and its Subsidiaries), and each of their Representatives (each, an “Indemnified Person”) from and against (i) any and all losses, claims, damages, obligations, penalties, judgments, awards, liabilities and
costs, expenses, and disbursements, (ii) any and all actions, suits, proceedings and investigations in respect thereof, and (iii) any and all legal costs or other costs, expenses or disbursements in giving testimony or furnishing documents
in response to a subpoena or otherwise (including, without limitation, the costs, expenses and disbursements, as and when incurred, of investigating, preparing or defending any such action, proceeding or investigation (whether or not in connection
with litigation in which any of the 

  
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Indemnified Persons is a party) and including, without limitation, any and all losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements,
resulting from any act or omission of any of the Indemnified Persons), in each of subsections (i), (ii) and (iii) above only if arising out of a claim asserted by a third party and in each of subsections (i) and (iii), only to the extent
such costs and expenses are reasonable, documented, out-of-pocket, third party costs (collectively (i)-(iii), the “Losses”) directly caused by,
relating to, based upon, arising out of or in connection with, a third party claim related to the issuance of the New Secured Notes or the Equity Securities, the Rights Offerings, the Restructuring Transactions or this Agreement, or a third party
claim related to any untrue statement or alleged untrue statement of a material fact contained in, or material omissions or alleged omissions in, information furnished by the Indemnifying Party or any of its Subsidiaries or Affiliates, or any other
person acting at the Company Parties’ direction in connection with the issuance of the New Secured Notes or the Equity Securities or the resale of such securities in accordance with this Agreement; provided, that, such indemnity agreement shall
not apply to any portion of any such loss, claim, damage, obligation, penalty, judgment, award, liability, cost, expense or disbursement of an Indemnified Person to the extent it is found in a final judgment by a court of competent jurisdiction (not
subject to further appeal) to have resulted from (x) the gross negligence or wilful misconduct of such Indemnified Person or (y) the material breach of this Agreement or the Restructuring Support and
Lock-Up Agreement by such Indemnified Person (or, if such Indemnified Person is not a Commitment Party or is not a party to the Restructuring Support and Lock-Up
Agreement, by its Affiliate or Representative, as applicable). These indemnification provisions shall be in addition to any liability which the Indemnifying Party may have to the Indemnified Persons. 

Section 7.2 Indemnification Procedures. Promptly after receipt by an Indemnified Person of notice of the commencement of
any claim, challenge, litigation, investigation or proceeding for which such Indemnified Person is indemnified pursuant to Section 7.1 (an “Indemnified Claim”), such Indemnified Person will, if a
claim is to be made hereunder against the Indemnifying Party in respect thereof, notify the Indemnifying Party in writing of the commencement thereof; provided, that (a) the omission to so notify the Indemnifying Party will not relieve the
Indemnifying Party from any liability that it may have hereunder except to the extent it has been materially prejudiced by such failure and (b) the omission to so notify the Indemnifying Party will not relieve the Indemnifying Party from any
liability that it may have to such Indemnified Person otherwise than on account of this Article VII. In case any such Indemnified Claims are brought against any Indemnified Person and it notifies the Indemnifying Party of the commencement
thereof, the Indemnifying Party will be entitled to participate therein, and, at its election by providing written notice to such Indemnified Person, the Indemnifying Party will be entitled to assume the defense thereof, with counsel reasonably
acceptable to such Indemnified Person; provided, that if the parties (including any impleaded parties) to any such Indemnified Claims include both such Indemnified Person and the Indemnifying Party and based on advice of such Indemnified
Person’s counsel there are legal defenses available to such Indemnified Person that are different from or additional to those available to the Indemnifying Party, such Indemnified Person shall have the right to select separate counsel to assert
such legal defenses and to otherwise participate in the defense of such Indemnified Claims. Upon receipt of notice from the Indemnifying Party to such Indemnified Person of its election to so assume the defense of such Indemnified Claims with
counsel reasonably acceptable to the Indemnified Person, the Indemnifying Party shall not be liable to 

  
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such Indemnified Person for expenses incurred by such Indemnified Person in connection with the defense thereof or participation therein (other than reasonable costs of investigation) unless
(i) such Indemnified Person shall have employed separate counsel (in addition to any local counsel) in connection with the assertion of legal defenses in accordance with the proviso to the immediately preceding sentence (it being understood,
however, that the Indemnifying Party shall not be liable for the expenses of more than one separate counsel representing the Indemnified Persons who are parties to such Indemnified Claims (in addition to one local counsel in each jurisdiction in
which local counsel is required)), (ii) the Indemnifying Party shall not have employed counsel reasonably acceptable to such Indemnified Person to represent such Indemnified Person within a reasonable time after the Indemnifying Party has received
notice of commencement of the Indemnified Claims from, or delivered on behalf of, the Indemnified Person, (iii) after the Indemnifying Party assumes the defense of the Indemnified Claims, the Indemnified Person determines in good faith that the
Indemnifying Party has failed or is failing to defend such claim and provides written notice of such determination and the basis for such determination, and such failure is not reasonably cured within ten (10) Business Days of receipt of such
notice, or (iv) the Indemnifying Party shall have authorized in writing the employment of counsel for such Indemnified Person. Notwithstanding anything herein to the contrary, the Company Parties shall have sole control over any Tax controversy
or Tax audit and shall be permitted to settle any liability for Taxes of the Debtors. 
 Section 7.3 Settlement of
Indemnified Claims. In connection with any Indemnified Claim for which an Indemnified Person is assuming the defense in accordance with this Article VII, the Indemnifying Party shall not be liable for any settlement of any Indemnified Claims
effected by such Indemnified Person without the written consent of the Indemnifying Party (which consent shall not be unreasonably withheld, conditioned or delayed). If any settlement of any Indemnified Claims is consummated with the written consent
of the Indemnifying Party or if there is a final judgment for the plaintiff in any such Indemnified Claims, the Indemnifying Party agrees to indemnify and hold harmless each Indemnified Person from and against any and all Losses by reason of such
settlement or judgment to the extent such Losses are otherwise subject to indemnification by the Indemnifying Party hereunder in accordance with, and subject to the limitations of, this Article VII. The Indemnifying Party shall not, without
the prior written consent of an Indemnified Person (which consent shall be granted or withheld, conditioned or delayed in the Indemnified Person’s sole discretion), effect any settlement of any pending or threatened Indemnified Claims in
respect of which indemnity or contribution has been sought hereunder by such Indemnified Person unless (i) such settlement includes an unconditional release of such Indemnified Person in form and substance satisfactory to such Indemnified
Person from all liability on the claims that are the subject matter of such Indemnified Claims and (ii) such settlement does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any
Indemnified Person. 
 Section 7.4 Contribution. In order to provide for just and equitable contribution, if a claim
for indemnification pursuant to these indemnification provisions is made but is found by a judgment of a court of competent jurisdiction (not subject to further appeal) that such indemnification may not be enforced in such case, even though the
express provisions hereof provide for indemnification in such case, then the Indemnifying Party, on the one hand, and the Indemnified Persons, on the other hand, shall contribute to the losses, claims, damages, obligations, penalties, judgments,
awards, liabilities, costs, expenses and disbursements to which 

  
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the Indemnified Persons may be subject in accordance with the relative benefits received by the Indemnifying Party, on the one hand, and the Indemnified Persons, on the other hand, and also the
relative fault of the Indemnifying Party, on the one hand, and the Indemnified Persons collectively and in the aggregate, on the other hand, in connection with the statements, acts or omissions which resulted in such losses, claims, damages,
obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements and the relevant equitable considerations shall also be considered. No person found liable for a fraudulent misrepresentation shall be entitled to contribution
from any other person who is not also found liable for such fraudulent misrepresentation. Notwithstanding the foregoing, none of the Indemnified Persons shall be obligated to contribute any amount hereunder that exceeds the amount of fees previously
received by such Indemnified Person pursuant to this Agreement. 
 Section 7.5 Survival and Exclusive Remedy. Neither
expiration nor termination of the Commitment Parties’ commitments under this Agreement or funding or repayment of the New Secured Notes or Equity Securities shall affect these indemnification provisions which shall remain operative and continue
in full force and effect. With respect to the matters set forth in Section 7.1, the remedies set forth in this Article VII shall be the sole and exclusive remedy with respect to those matters set forth in
Section 7.1 and each of the Commitment Parties, on behalf of itself and its Affiliates, hereby waives to the fullest extent permitted under applicable Law and all rights, claims and causes of action it or any of its
respective Affiliates may have against the Indemnifying Parties with respect to the subject matter therein, regardless. 

ARTICLE VIII 

TERMINATION 

Section 8.1 Consensual Termination. This Agreement may be terminated and the transactions contemplated hereby may be
abandoned at any time prior to the Closing Date by mutual written consent of the Company Parties and the Required Commitment Parties. 

Section 8.2 Termination by Commitment Parties. This Agreement may be terminated by the Required Commitment Parties upon
prior written notice to the Debtors in accordance with Section 10.1 upon the occurrence and continuance of the events listed in subclause (i) or the occurrence of the events listed in subclause (m) of this
Section 8.2, and this Agreement may be terminated by each of the Commitment Parties in respect of its commitment hereunder upon prior written notice to the Debtors in accordance with Section 10.1
upon the occurrence and continuance of any of the following events listed (excluding those events listed in subclause (i)) in each case, other than as contemplated by the Restructuring Transactions, provided prior written notice shall not be
required for termination pursuant to clause (a): 
 (a) the Closing Date has not occurred by 11:59 p.m., New York City
time on the Outside Date; provided, that the Outside Date may be waived or extended with the prior written consent of each Commitment Party; provided, further, that no Commitment Party shall have the right to terminate this
Agreement pursuant to this Section 8.2 if such Commitment Party is then in willful or intentional material breach of this Agreement; 

  
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 (b) the Bankruptcy Court enters an order denying confirmation of the Plan; 

(c) upon termination of the Restructuring Support and Lock-Up Agreement according to
its terms (other than as a result of a breach by any Commitment Party) as to the Required Commitment Parties, the Required Consenting Lenders, the Company Parties, or pursuant to Section 13.03 of the Restructuring Support and Lock-Up Agreement with respect to any Commitment Party, or all parties thereto; 
 (d) any
of the milestone dates provided in Section 6.1(a) (as they may be extended or modified according to the terms of this Agreement) have not been met, provided that in the case of the Confirmation Order Milestone, the Company
shall notify the Commitment Parties and the Consenting Lenders in writing at least 10 Business Days prior to the Confirmation Order Milestone Date if it considers, acting reasonably, that the Confirmation Order Milestone Date will not be met. Upon
receipt of the Company’s notice, the Required Commitment Parties shall in good faith and acting reasonably, negotiate with the Company (in consultation with the Consenting Lenders) in respect of any extension or modification of the applicable
Confirmation Order Milestone Date; provided that any such extension or modification is made pursuant to the mutual agreement of the Company and Commitment Parties, each at their sole discretion; 

(e) any Company Party (i) enters into any binding (subject to Bankruptcy Court approval) commitment or agreement to
consummate any Alternative Restructuring Proposal or (ii) publicly announces that such Company Party will support any Alternative Restructuring Proposal; 

(f) if at any time before entry of the Confirmation Order, holders of at least 66.67% of Credit Agreement Claims under each
individual Credit Agreement are no longer party to the Restructuring Support and Lock-Up Agreement (and the Company shall keep the Commitment Parties informed of any terminations of the Restructuring Support
and Lock-Up Agreement by any Consenting Lender); 
 (g) the filing by the Company of
any motion or other request for relief without the written consent of counsels to the Commitment Parties (not to be unreasonably withheld, conditioned or delayed), seeking (i) to voluntarily dismiss any of the Chapter 11 Cases,
(ii) conversion of any of the Chapter 11 Cases to chapter 7 of the Bankruptcy Code, or (iii) appointment of a trustee pursuant to section 1104 of the Bankruptcy Code in any of the Chapter 11 Cases; 

(h) the entry of an order by the Bankruptcy Court, without the written consent of counsels to the Commitment Parties (not to be
unreasonably withheld, conditions or delayed) (a) dismissing any of the Chapter 11 Cases, (b) converting any of the Chapter 11 Cases to a case under chapter 7 of the Bankruptcy Code, (c) appointing a trustee pursuant to
section 1104 of the Bankruptcy Code in any of the Chapter 11 Cases; or (d) making a finding of fraud, dishonesty, or misconduct by any officer or director of the Company; 

  
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 (i) (w) the Company or the other Debtors shall have breached any
representation, warranty, covenant or other agreement made by the Company or the other Debtors in this Agreement and any such representation or warranty shall have become inaccurate and such breach or inaccuracy would, individually or in the
aggregate, cause a condition set forth in Section 6.1(b) or Section 6.1(c) not to be satisfied, (x) the Commitment Parties shall have delivered written notice of such breach or inaccuracy to
the Company, (y) such breach or inaccuracy is not cured by the Company or the other Debtors by the tenth (10th) Business Day after the Required Commitment Parties transmit a written notice in accordance with
Section 10.1 hereof detailing any such issuance, and (z) as a result of such failure to cure, any condition set forth in Section 6.1(b) or Section 6.1(c) is not
capable of being satisfied; provided, that no Commitment Party shall have the right to terminate this Agreement pursuant to this Section 8.2(i) if any Commitment Party is then in willful or intentional material
breach of this Agreement; 
 (j) the issuance by any Governmental Entity, including any regulatory authority or court of
competent jurisdiction, of any Final Order that (i) enjoins the consummation of a material portion of the Restructuring Transactions and (ii) remains in effect for seven (7) Business Days after the Required Commitment Parties transmit
a written notice in accordance with Section 10.1 hereof detailing any such issuance; provided, that this termination right shall not apply to or be exercised by any Commitment Party that requested such issuance in
contravention of any obligation set out in this Agreement; 
 (k) the Company (i) materially and adversely to the
Commitment Parties amends or modifies, or files a pleading seeking authority to materially and adversely to the Commitment Parties amend or modify, the Definitive Documents in a manner that is inconsistent with this Agreement without the consent of
the Required Commitment Parties, provided that if such amendment, modification or filing disproportionately impacts a Commitment Party in a material and adverse way relative to the other Commitment Parties and such Commitment Party is not a Required
Commitment Party, such Commitment Party’s consent shall be required and (ii) such amendment or modification remains in effect for, or such pleading is not withdrawn within, fifteen (15) Business Days after the Required Commitment
Parties transmit a written notice in accordance with Section 10.1 hereof detailing any such occurrence; 

(l) the Confirmation Order is reversed, stayed, modified, or amended without the acquiescence or written consent (not to be
unreasonably withheld, conditioned or delayed) of the Required Commitment Parties (and such action has not been reversed or vacated within thirty (30) Business Days after the Required Commitment Parties transmit a written notice in accordance
with Section 10.1 hereof detailing any such occurrence) in a manner that prohibits the consummation of the Restructuring Transactions and that cannot be remedied by the Debtors; or 

(m) any Consenting Stakeholder (other than the terminating Commitment Party, if it is the defaulting Consenting Stakeholder)
commits any material breach of Section 4.01(b)(ii) of the Restructuring Support and Lock-Up Agreement. 

Section 8.3 Termination by the Company. This Agreement may be terminated by each of the Company Parties upon prior
written notice to each Commitment Party in accordance with Section 10.1 upon the occurrence and continuance of any of the following events, subject to the rights of the Company to fully and conditionally waive, in writing,
on a prospective or retroactive basis the occurrence of such Event: 

  
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 (a) any Law or Final Order shall have been enacted, adopted or issued by any
Governmental Entity that prohibits the implementation of the Restructuring Transactions, the other Definitive Documents or the Registration Rights Agreement in a way that cannot be remedied by the Commitment Parties subject to the reasonable
satisfaction of the Company; 
 (b) subject to the right of the Debt Commitment Parties to arrange a Debt Commitment Party
Replacement in accordance with Section 2.3(a) (which will be deemed to cure any breach by the replaced Debt Commitment Party pursuant to this subsection (b)), (i) any Commitment Party shall have breached any
representation, warranty, covenant or other agreement made by such Commitment Party in this Agreement or any such representation or warranty shall have become inaccurate and such breach or inaccuracy would, individually or in the aggregate, cause a
condition set forth in Section 6.3(a) or Section 6.3(b) not to be satisfied, (ii) the Company shall have delivered written notice in accordance with Section 10.1
hereof of such breach or inaccuracy to such Commitment Party, (iii) such breach or inaccuracy is not cured by such Commitment Party by the tenth (10th) Business Day after receipt of such notice, and (iv) as a result of such failure to
cure, any condition set forth in Section 6.3(a) or Section 6.3(b) is not capable of being satisfied; provided, that the Company shall not have the right to terminate this Agreement pursuant
to this Section 8.3(b) if it is then in willful or intentional breach of this Agreement; 
 (c) the
Confirmation Order is reversed, stayed, modified, or amended without the acquiescence or written consent (not to be unreasonably withheld, conditioned or delayed) of the Company (and such action has not been reversed or vacated within thirty
(30) Business Days) in a manner that prohibits the consummation of the Restructuring Transactions and that cannot be remedied by the Commitment Parties; 

(d) the board of directors, board of managers, or such similar governing body of any Company Party determines, after consulting
with counsel, (i) that proceeding with this Agreement or any of the Restructuring Transactions would be inconsistent with the exercise of its fiduciary duties or applicable Law or (ii) in the exercise of its fiduciary duties, to pursue an
Alternative Restructuring Proposal; 
 (e) upon termination of the Restructuring Support and
Lock-Up Agreement (other than as a result of a breach by any Company Party), as to the Required Commitment Parties, the Required Consenting Lenders, the Company Parties or all parties thereto; or 

(f) the Closing Date has not occurred by the Outside Date (as the same may be extended pursuant
Section 2.3(e)); provided, that the Company shall not have the right to terminate this Agreement pursuant to this Section 8.3(f) if it is then in breach of this Agreement; 

Section 8.4 Return of Deposit. 

(a) If this Agreement is terminated (i) pursuant to a provision in this Article VIII other than
Section 8.3(b), then pursuant to the Escrow Agreement, the Escrow Agent shall distribute to each Commitment Party the amount in such Commitment Party’s Escrow 

  
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Account (which, for the avoidance of doubt, includes any interest earned on under the Escrow Agreement on any amounts deposited therein) and return and cancel any letters of credit held in an
Escrow Account or (ii) pursuant to Section 8.3(b), then pursuant to the Escrow Agreement, the Escrow Agent shall distribute to (x) the Company the amount in the Escrow Account (which, for the avoidance of doubt,
includes any interest earned on under the Escrow Agreement on any amounts deposited therein and any letter of credit deposited therein) of any Commitment Party whose breach of this Agreement provided the Company with a termination right pursuant to
Section 8.3(b) and (y) each of the other Commitment Parties, if any, the amount in such Commitment Party’s Escrow Account (which, for the avoidance of doubt, includes any interest earned on under the Escrow
Agreement on any amounts deposited therein) and return and cancel any letters of credit held in such other Commitment Party’s Escrow Account. 

(b) For the avoidance of doubt, nothing in this Section 8.4 shall impair, restrict or replace the
rights of the Company set forth in Section 10.9. 
 Section 8.5 Effect of Termination. Upon
termination of this Agreement pursuant to this Article VII, this Agreement shall forthwith become void and there shall be no further obligations or liabilities on the part of the Parties; provided, that (i) the provisions set
forth in Article X, shall survive the termination of this Agreement in accordance with their terms and (ii) nothing in this Section 8.4 shall relieve any Party from liability for its gross
negligence or willful or intentional breach of this Agreement. For purposes of this Agreement, “willful or intentional breach” means a breach of this Agreement that is a consequence of an act or omission undertaken by the breaching Party
if such breaching Party knew or should have known that such act or omission would, or would reasonably be expected to, cause a breach of this Agreement. 

ARTICLE IX 
 FEES
AND EXPENSES 
 Section 9.1 New Secured Notes related Fees. 

(a) Commitment Fee. As consideration for the Debt Commitment and the other agreements of the Debt Commitment Parties in this
Agreement, and as a condition to the occurrence of the Investment Agreement Effective Date, the Company shall pay, or shall cause to be paid, to each Debt Commitment Party, for its own account, such Debt Commitment Party’s Debt Commitment
Percentage of a nonrefundable and non-avoidable commitment fee of 5.0% of the Aggregate Debt Commitment Amount (the “Commitment Fee”), which shall be paid to the Debt Commitment Parties
or their designees on the Investment Agreement Effective Date and shall be earned by the Debt Commitment Parties upon receipt. For the avoidance of doubt, payment of the Commitment Fee is a condition to the Investment Agreement Effective Date, but
is not an obligation of the Company as of the date of this Agreement. 
 (b) Closing Fee. As consideration for the NSN
Purchasers’ purchase of the New Secured Notes on the Closing Date and as a condition to the occurrence of the Closing, the Company shall pay or cause to be paid to each NSN Purchaser for its own account such NSN Purchaser’s NSN Percentage
of 1.0% of the Aggregate Debt Commitment Amount (“Closing Fee”), which shall be paid to the NSN Purchasers or their designees upon Closing and shall be earned by the NSN Purchasers upon receipt. For the avoidance of doubt,
payment of the Closing Fee is a condition to the Closing, but is not an obligation of the Company as of the date of this Agreement. 

  
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 Section 9.2 Equity Purchaser Fees. 

(a) As consideration for the commitment to purchase the Acquired Equity Securities in accordance with this Agreement, and as a
condition to the occurrence of the Investment Agreement Effective Date, the Company shall deliver, or shall have caused the delivery, to each Equity Commitment Party (or its designee), for its own account, such Equity Commitment Party’s Equity
Commitment Percentage of a nonrefundable and non-avoidable fee of 5.0% of the Aggregate Equity Commitment Amount (the “Equity Purchaser Cash Fee”) which fee shall be earned by the
Equity Commitment Parties upon receipt. For the avoidance of doubt, payment of the Equity Purchaser Cash Fee is a condition to the Investment Agreement Effective Date, but is not an obligation of the Company as of the date of this Agreement. 

(b) The Company agrees that if the Equity Securities are not available for trade on the Oslo Stock Exchange within 90 days of
the Confirmation Order being entered (“Ticking Fee Event Date” and the Equity Securities not being so available, the “Ticking Fee Event”), then on the first day of the month following the
Ticking Fee Event Date, and the first day of each month thereafter until such Ticking Fee Event has been cured, the Company shall pay to the Equity Commitment Parties an aggregate amount in cash, equal to $100,000, allocated among the Equity
Commitment Parties pro rata based on the number of Equity Securities purchased by such Equity Commitment Parties at the Closing (“Ticking Fee”). The Ticking Fee shall accrue on a daily basis, beginning on the Ticking Fee
Event Date and each day following the Ticking Fee Event Date on which the Ticking Fee Event is continuing; provided, however, that notwithstanding anything herein to the contrary, in no event shall the Company be liable for the Ticking Fee on the
Ticking Fee Event Date or for any period of time thereafter if the Ticking Fee Event is continuing for reasons beyond the reasonable control of the Company. If the Ticking Fee payment is due on a day that is not a Business Day, such payment
shall be paid on the next succeeding Business Day. If the Ticking Fee payment is due on a day that is not a Business Day, such payment shall be paid on the next succeeding Business Day. If the Company fails to pay any amounts due pursuant to this
Section 9.2(b) in full within seven (7) Business Days after the date they are payable, the Company shall pay interest thereon at a rate of six percent (6.0%) per annum (or such lesser maximum amount that is permitted
to be paid by applicable law) to each of the Equity Commitment Parties based on the amount so due to such Equity Commitment Party, as applicable, accruing daily from the date such partial amounts are due until such amounts, plus all such interest
thereon, are paid in full. Notwithstanding the foregoing, the aggregate amount of such amounts payable by the Company under this Section 9.2(b) shall not exceed $3,000,000. 

Section 9.3 Structuring Fees. Further, as consideration for the commitment to purchase their portion of the Acquired
Equity Securities in accordance with this Agreement and the other agreements of, and services by, Hemen and the Select Commitment Parties in respect of the the Restructuring Transactions, and as a condition to the occurrence of the Closing, the
Company shall, and shall procure that New Seadrill shall issue to Hemen and the Select Commitment Parties at Closing Equity Securities as follows (collectively, the “Structuring Fees”): 

  
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 (a) to Hemen (or its designee) 5.0% of New Seadrill’s Equity Securities on a
post-dilution basis, excluding, for the avoidance of doubt, any dilution resulting from the EIP which shall be given effect after all other Equity Securities have been issued at the Closing; and 

(b) to each of the Select Commitment Parties (or its designee), its pro rata share (relative to each member’s Equity
Commitment Percentage) of 0.5% of New Seadrill’s Equity Securities on a pre-dilution basis. 

For the avoidance of doubt, payment of the Structuring Fee is a condition to the Closing, but is not an obligation of the Company as of the
date of this Agreement. 
 Section 9.4 Expense Reimbursement; Incremental Expenses. 

(a) As a condition to the occurrence of the Investment Agreement Effective Date, the Company shall, or shall have caused, the
delivery of a cash payment in an amount to be agreed between the Company, the Original Commitment Parties, and the CoCom (the “OC Expense Reimbursement”) for the benefit of the Original Commitment Party, which shall be
applied, (a) first, to Expenses including monthly fees and expenses of (i) Goldman Sachs, as financial advisor to the Original Commitment Parties and (ii) counsels to each Original Commitment Party, in each case incurred as of the
Investment Agreement Effective Date, (b) second, to a prepayment retainer, earned by counsels to each Original Commitment Party upon receipt, for estimated Expenses through the Closing Date and (c), to a prepayment retainer earned by each
Original Commitment Party for the monthly fees and expense of Goldman Sachs through to the Closing Date. For the avoidance of doubt, payment of the Expense Reimbursement is a condition to the Investment Agreement Effective Date, but is not an
obligation of the Company as of the date of this Agreement. 
 (b) As a condition to the occurrence of the Investment
Agreement Effective Date, the Company shall, or shall have caused, the delivery of a cash payment in an amount to be agreed between the Company, the Select Commitment Parties, and the CoCom (the “SCP Expense
Reimbursement”) for the benefit of the Select Commitment Parties, which shall be applied, (a) first, to Expenses including monthly fees and expenses of (i) Moelis & Company, as financial advisor to the Select
Commitment Parties and (ii) Akin Gump Strauss Hauer & Feld LLP as counsel to the Select Commitment Parties, in each case incurred as of the Investment Agreement Effective Date, (b) second, to a prepayment retainer, earned by
counsel to the Select Commitment Parties upon receipt, for estimated Expenses through the Closing Date and (c), to a prepayment retainer earned by the Select Commitment Parties for the monthly fees and expense of Moelis & Company through
and until the Closing Date. For the avoidance of doubt, payment of the Expense Reimbursement is a condition to the Investment Agreement Effective Date, but is not an obligation of the Company as of the date of this Agreement. 

(c) As a condition to the occurrence of the Investment Agreement Effective Date, the Company shall, or shall have caused, the
delivery of a cash payment in an amount to be agreed between the Company, the Additional Commitment Parties, and the CoCom for the 

  
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benefit of the Additional Commitment Parties, which shall be applied, (a) first, to counsel to the Additional Commitment Parties incurred as of the Investment Agreement Effective Date and
(b) second, to a prepayment retainer, earned by counsel to the Additional Commitment Parties upon receipt, for estimated Expenses through the Closing Date. For the avoidance of doubt, payment of the Expense Reimbursement is a condition to
the Investment Agreement Effective Date, but is not an obligation of the Company as of the date of this Agreement. 
 (d) At
Closing, the Company Parties shall pay to each Commitment Party and, as applicable, to each Commitment Party’s attorneys, accountants, advisors, financial advisors, consultants and other professionals, all Expenses, including all monthly fees
and expenses of Goldman Sachs and Moelis & Company, in each case incurred from the Investment Agreement Effective Date to the Closing Date that exceed the Expense Reimbursement (“Incremental Expenses”). To the extent
Expenses incurred through the Closing Date are less than the retainers paid pursuant to this Section 9.4, the applicable Commitment Parties shall refund such excess amounts of such retainers to the Company Parties at Closing. 

Section 9.5 Further Agreements. 

(a) Each of the fees and expenses set out herein shall be fully earned, nonrefundable and
non-avoidable and shall be paid in full in cash by the Company, free and clear of any withholding or deduction for any U.S. or Bermuda Taxes, on the date of payment set forth in this Agreement, unless required
by applicable law. If any applicable law requires the deduction or withholding of any U.S. or Bermuda Tax from any such payment for any reason other than the failure of the recipient of any such payment to provide applicable documentation (that such
recipient is legally entitled to provide) that would make such deduction or withholding inapplicable, then the Company shall make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental
Entity in accordance with applicable law and the sum payable by Company shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under
this Section) the applicable recipient receives an amount equal to the sum it would have received had no such deduction or withholding been made. The Company acknowledges and agrees that, as of the date hereof, it does not anticipate or have actual
knowledge of any withholding or deduction for any Taxes other than U.S. or Bermuda with respect to the fees and expenses set forth in this Agreement. If the Company concludes that withholding or deduction may be necessary for Taxes other than U.S.
or Bermuda, the Company shall promptly notify the Commitment Party with respect to which withholding or deduction may be required, and the Company shall use its best efforts and cooperate with such Commitment Party to minimize or eliminate any such
withholding or deduction; provided, that, in the event such withholding or deduction is ultimately determined to be required, the Company shall be entitled to make such deduction or withholding, shall promptly pay over any such withheld or
deducted amount to the applicable Governmental Entity, and the amounts so withheld or deducted shall be treated as paid pursuant to this Agreement. The Company agrees that all such fees and expenses are provided at fair value in exchange for the
commitments provided by the recipients (or their representatives) to the Company. The provisions for the payment of the fees and expenses are an integral part of the transactions contemplated by this Agreement and without these provisions the
Commitment Parties would not have entered into this Agreement. 

  
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 ARTICLE X 

GENERAL PROVISIONS 

Section 10.1 Notices. All notices and other communications in connection with this Agreement shall be in writing and shall
be deemed given if delivered personally, sent via electronic facsimile (with confirmation), mailed by registered or certified mail (return receipt requested) or delivered by an express courier (with confirmation) to the Parties at the following
addresses (or at such other address for a Party as may be specified by like notice): 
  

	 	(a)	 If to a Company Party (including the Company): 

Seadrill Limited 

Par-la-Ville Place 

14 Par-la-Ville Road 

Hamilton HM 08, Bermuda 

Attention: Georgina Sousa 
  

	 	with	 a copy for information only (which shall not constitute notice) to: 

Seadrill Management Ltd. 

(Corporate Headquarters) 

2nd Floor 

Building 11 

Chiswick Business Park 

566 Chiswick High Road 

London W4 5YS 

United Kingdom 

Attention: Chris Edwards 

Email: Chris.Edwards@seadrill.com 
  

	 	and:	 

Kirkland & Ellis LLP 

600 Travis Street 

Houston, Texas 77002 

Attention: Doug Bacon, P.C. 

Brian Schartz 

E-mail: doug.bacon @kirkland.com 

bschartz@kirkland.com 

  
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	 	and:	 

Kirkland & Ellis LLP 

300 North LaSalle 

Chicago, IL 60654 

Attention: Anup Sathy, P.C. 

Ross M. Kwasteniet, P.C. 

E-mail: anup.sathy@kirkland.com 

 ross.kwasteniet@kirklandcom 
  

	 	(b)	 If to an Original Commitment Party: 

To such Original Commitment Party at the addresses or e-mail addresses set forth below
the Original Commitment Party’s signature in its signature page to this Agreement. 
 with a copy (which shall not
constitute notice) to: 
 Cadwalader, Wickersham & Taft LLP 

Dashwood House, 69 Old Broad Street, London 

EC2M 1QS 

Attention: Gregory Petrick 

Yushan Ng 

E-mail addresses: Gregory.Petrick@cwt.com; Yushan.Ng@cwt.com; 

projecteagle@cwt.com 
  

	 	and:	 

Fried, Frank, Harris, Shriver & Jacobson LLP 

One New York Plaza 

New York, New York 10004 

Attn:    Brad E. Scheler 

            Jennifer L. Rodburg 

Email: Brad.Scheler@friedfrank.com; Jennifer.Rodburg@friedfrank.com 

 

	 	(c)	 If to a Select Commitment Party: 

To such Select Commitment Party at the addresses or e-mail addresses set forth in
Schedule 5 to this Agreement. 
 with a copy (which shall not constitute notice) to: 

Akin Gump Strauss Hauer & Feld LLP 

One Bryant Park, Bank of America Tower 

New York, New York 10036 

Facsimile: (212) 872-1002 

Attention: Ira S. Dizengoff 

  
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 Philip C. Dublin 

Allison P. Miller 

Email: idizengoff@akingump.com 

pdublin@akingump.com 

amiller@akingump.com 
  

	 	(d)	 If to an Additional Commitment Party: 

To such Additional Commitment Party at the addresses or e-mail addresses set forth in
Schedule 5 to this Agreement. 
 with a copy (which shall not constitute notice) to: 

Paul, Weiss, Rifkind, Wharton & Garrison, LLP 

1285 Avenue of the Americas 

New York, New York 10019-6064 

Facsimile: (212) 373-0524 

Attention: Andrew Rosenberg 

Elizabeth McColm 

Catherine Goodall 

Email: arosenberg@paulweiss.com 

emccolm@paulweiss.com 

cgoodall@paulweiss.com 

If a notice is delivered personally delivered, sent via electronic facsimile or electronic mail, then the notice shall be deemed received on
the day such notice was sent if such notice was sent before 5:00 p.m. New York City time on a Business Day, and otherwise, shall be deemed received on the next Business Day. If the notice is sent by registered or certified mail (return receipt
requested), the notice shall be deemed delivered on the third Business Day after such notice was sent. If the notice is delivered by express overnight courier (with confirmation), the notice shall be deemed delivered on the next Business Day after
such notice was sent. Notwithstanding the foregoing, if notice is actually received before the deemed received date, then such notice shall be considered received on the date of actual receipt (or the next Business Day if the day of actual receipt
is not a Business Day or it is otherwise past 5:00 p.m. New York City time on the day of receipt). 
 Section 10.2
Assignment; Third Party Beneficiaries. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned by any Party (whether by operation of Law or otherwise) without the prior written consent of the
Company and the Required Commitment Parties, other than an assignment by a Commitment Party expressly permitted by Section 2.3 or Section 2.6 and any purported assignment in violation of this
Section 10.2 shall be void ab initio. This Agreement (including the documents and instruments referred to in this Agreement) is not intended to and does not confer upon any Person any rights or remedies under this
Agreement other than the Parties (including their permitted transferees and assignees) and the Indemnified Persons. 

  
 -75- 

 Section 10.3 Prior Negotiations; Entire Agreement. 

(a) This Agreement (including the agreements attached as Exhibits to and the documents and instruments referred to in this
Agreement) constitutes the entire agreement of the Parties and supersedes all prior agreements, arrangements or understandings, whether written or oral, among the Parties with respect to the subject matter of this Agreement, except that the Parties
hereto acknowledge that any confidentiality agreements heretofore executed among the Parties and the Restructuring Support and Lock-Up Agreement (including the Restructuring Term Sheet) will each continue in
full force and effect. 
 (b) Notwithstanding anything to the contrary in the Plan (including any amendments, supplements or
modifications thereto) or the Confirmation Order (and any amendments, supplements or modifications thereto) or an affirmative vote to accept the Plan submitted by any Commitment Party, nothing contained in the Plan (including any amendments,
supplements or modifications thereto) or Confirmation Order (including any amendments, supplements or modifications thereto) shall alter, amend or modify the rights of the Commitment Parties under this Agreement unless such alteration, amendment or
modification has been made in accordance with Section 10.7. 
 Section 10.4 Governing Law;
Venue. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK. BY ITS EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY IRREVOCABLY AND UNCONDITIONALLY AGREES FOR ITSELF THAT ANY LEGAL
ACTION, SUIT, OR PROCEEDING AGAINST IT WITH RESPECT TO ANY MATTER ARISING UNDER OR ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT RENDERED IN ANY SUCH ACTION, SUIT, OR PROCEEDING, MAY BE BROUGHT
IN THE BANKRUPTCY COURT, AND BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH OF THE PARTIES IRREVOCABLY ACCEPTS AND SUBMITS ITSELF TO THE EXCLUSIVE JURISDICTION OF SUCH COURT, GENERALLY AND UNCONDITIONALLY, WITH RESPECT TO ANY SUCH ACTION, SUIT OR
PROCEEDING. THE PARTIES HEREBY AGREE THAT MAILING OF PROCESS OR OTHER PAPERS IN CONNECTION WITH ANY SUCH ACTION OR PROCEEDING TO AN ADDRESS PROVIDED IN WRITING BY THE RECIPIENT OF SUCH MAILING, OR IN SUCH OTHER MANNER AS MAY BE PERMITTED BY LAW,
SHALL BE VALID AND SUFFICIENT SERVICE THEREOF AND HEREBY WAIVE ANY OBJECTIONS TO SERVICE ACCOMPLISHED IN THE MANNER HEREIN PROVIDED. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR OTHER
PROCEEDING IN THE BANKRUPTCY COURT AND IRREVOCABLY AND UNCONDITIONALLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN THE BANKRUPTCY COURT THAT ANY SUCH SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN THE BANKRUPTCY COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM. 

  
 -76- 

 Section 10.5 Waiver of Jury Trial. EACH PARTY HEREBY WAIVES ALL RIGHTS TO
TRIAL BY JURY IN ANY JURISDICTION IN ANY ACTION, SUIT OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE AMONG THE PARTIES UNDER THIS AGREEMENT, WHETHER IN CONTRACT, TORT OR OTHERWISE. 

Section 10.6 Counterparts. This Agreement may be executed in any number of counterparts, all of which will be considered
one and the same agreement and will become effective when counterparts have been signed by each of the Parties and delivered to each other Party (including via facsimile or other electronic transmission), it being understood that each Party need not
sign the same counterpart. 
 Section 10.7 Waivers and Amendments; Rights Cumulative; Consent. This Agreement may be
amended, restated, modified or changed only by a written instrument signed by the Company and the Required Commitment Parties; provided, that any Commitment Party’s prior written consent shall be required for any amendment that
would have a materially adverse and disproportionate effect on such Commitment Party and each Commitment Party’s prior written consent shall be required for any revisions to the Commitment Schedule. Notwithstanding the foregoing, the Debt
Commitment Schedule shall be revised as necessary without requiring a written instrument signed by the Company and the Required Commitment Parties to reflect changes in the composition of the Debt Commitment Parties and Debt Commitment Percentage as
a result of Transfers permitted in accordance with the terms and conditions of this Agreement. The terms and conditions of this Agreement (other than the conditions set forth in Section 6.1,
Section 6.3 and Section 6.4, the waiver of which shall be governed solely by Article VI) may be waived (A) by the Debtors only by a written instrument executed by the
Company and (B) by the Required Commitment Parties only by a written instrument executed by the Required Commitment Parties. No delay on the part of any Party in exercising any right, power or privilege pursuant to this Agreement will operate
as a waiver thereof, nor will any waiver on the part of any Party of any right, power or privilege pursuant to this Agreement, nor will any single or partial exercise of any right, power or privilege pursuant to this Agreement, preclude any other or
further exercise thereof or the exercise of any other right, power or privilege pursuant to this Agreement. 

Section 10.8 Headings. The headings in this Agreement are for reference purposes only and will not in any way affect the
meaning or interpretation of this Agreement. 
 Section 10.9 Specific Performance. The Parties agree that irreparable
damage would occur if any provision of this Agreement were not performed in accordance with the terms hereof and that the Parties shall be entitled to an injunction or injunctions without the necessity of posting a bond to prevent breaches of this
Agreement or to enforce specifically the performance of the terms and provisions hereof, in addition to any other remedy to which they are entitled at law or in equity. Any Company Party may enforce the Company’s rights and remedies under this
Agreement under this Section 10.9. Unless otherwise expressly stated in this Agreement, no right or remedy described or provided in this Agreement is intended to be exclusive or to preclude a Party from pursuing other
rights and remedies to the extent available under this Agreement, at law or in equity. 
 Section 10.10 No Survival.
All representations and warranties in this Agreement shall not survive the Closing Date. 

  
 -77- 

 Section 10.11 Damages. Each Defaulting Party shall be liable for any and all
losses, claims, damages, liabilities and costs and expenses to the extent such losses were reasonably foreseeable as a result of such Party’s actions that cause it to be a Defaulting Party including special, indirect or consequential damages
and damages for lost profits; provided that for the avoidance of doubt, such liability shall be several and not joint with any other Defaulting Parties. 

Section 10.12 No Reliance. No Commitment Party or any of its Related Parties shall have any duties or obligations to the
other Commitment Parties in respect of this Agreement, the Plan or the transactions contemplated hereby or thereby, except those expressly set forth herein. Without limiting the generality of the foregoing, (a) no Commitment Party or any of its
Related Parties shall be subject to any fiduciary or other implied duties to the other Commitment Parties, (b) no Commitment Party or any of its Related Parties shall have any duty to take any discretionary action or exercise any discretionary
powers on behalf of any other Commitment Party, (c) no Commitment Party or any of its Related Parties shall have any duty to the other Commitment Parties to obtain, through the exercise of diligence or otherwise, to investigate, confirm, or
disclose to the other Commitment Parties any information relating to the Company or any of its Subsidiaries that may have been communicated to or obtained by such Commitment Party or any of its Affiliates in any capacity, (d) no Commitment
Party may rely, and each Commitment Party confirms that it has not relied, on any due diligence investigation that any other Commitment Party or any Person acting on behalf of such other Commitment Party may have conducted with respect to the
Company or any of its Affiliates or any of their respective securities, and (e) each Commitment Party acknowledges that no other Commitment Party is acting as a placement agent, initial purchaser, underwriter, broker or finder with respect to
its Debt Commitment Percentage of its Debt Commitment. 
 Section 10.13 Publicity. At all times prior to the Closing
Date or the earlier termination of this Agreement in accordance with its terms, the Company and the Commitment Parties shall consult with each other prior to issuing any press releases (and provide each other a reasonable opportunity to review and
comment upon such release) or otherwise making public announcements with respect to the transactions contemplated by this Agreement, it being understood that nothing in this Section 10.13 shall prohibit any Party from
filing any motions or other pleadings or documents with the Bankruptcy Court in connection with the Chapter 11 Cases and or filings with any other court of competent jurisdiction in the Ancillary Proceedings, as applicable. 

Section 10.14 Settlement Discussions. This Agreement and the transactions contemplated herein are part of a proposed
settlement of a dispute between the Parties. Nothing herein shall be deemed an admission of any kind. Pursuant to section 408 of the U.S. Federal Rules of Evidence and any applicable state rules of evidence, this Agreement and all negotiations
relating thereto shall not be admissible into evidence in any Legal Proceeding, except to the extent filed with, or disclosed to, the Bankruptcy Court in connection with the Chapter 11 Cases or other court of competent jurisdiction in the
Ancillary Proceedings, as applicable (other than a Legal Proceeding to approve or enforce the terms of this Agreement). 

  
 -78- 

 Section 10.15 No Recourse. Notwithstanding anything that may be expressed or
implied in this Agreement, and notwithstanding the fact that certain of the Parties may be partnerships or limited liability companies, each Party covenants, agrees and acknowledges that no recourse under this Agreement or any documents or
instruments delivered in connection with this Agreement shall be had against any Party’s Affiliates, or any of such Party’s Affiliates’ or other respective Related Parties in each case other than the Parties to this Agreement and each
of their respective successors and permitted assignees under this Agreement, whether by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any applicable Law, it being expressly agreed and acknowledged that no
personal liability whatsoever shall attach to, be imposed on or otherwise be incurred by any of the Related Parties, as such, for any obligation or liability of any Party under this Agreement or any documents or instruments delivered in connection
herewith for any claim based on, in respect of or by reason of such obligations or liabilities or their creation; provided, however, nothing in this Section 10.15 shall relieve or otherwise limit the liability
of any Party hereto or any of their respective successors or permitted assigns for any breach or violation of its obligations under this Agreement or such other documents or instruments. For the avoidance of doubt, none of the Parties will have any
recourse, be entitled to commence any proceeding or make any claim under this Agreement or in connection with the transactions contemplated hereby except against any of the Parties or their respective successors and permitted assigns, as applicable.

 Section 10.16 Enforceability of Agreement. Each of the Parties to the extent enforceable, waives any right to assert
that the exercise of termination rights under this Agreement is subject to the automatic stay provisions of the Bankruptcy Code, and expressly stipulates and consents hereunder to the prospective modification of the automatic stay provisions of the
Bankruptcy Code for purposes of exercising termination rights under this Agreement, to the extent the Bankruptcy Court determines that such relief is required. If any Company Party asserts that the automatic stay prevents the exercise of any
termination rights by any Commitment Parties, then this Agreement shall terminate automatically without any further action or notice by any Party. 

Section 10.17 Relationship Among Parties. None of the Commitment Parties shall have any fiduciary duty, any duty of trust
or confidence in any form, or other duties or responsibilities to each other, any Company Party, or any of the Company Party’s respective creditors, equityholders or other stakeholders. It is understood and agreed that any Commitment Party may
trade in any debt or equity securities of any Company Party without the consent of any Company Party or any other Commitment Party, subject to applicable securities laws and Section 2.6 of this Agreement. No prior history,
pattern or practice of sharing confidences among or between any of the Commitment Parties and/or any Company Party shall in any way affect or negate this understanding and agreement. 

[Signature Page Follows] 

  
 -79- 

 IN WITNESS WHEREOF, the undersigned Parties have duly executed this Agreement as
of the date first above written. 
 Company Parties’ Signature Page to 

the Investment Agreement 
 SEADRILL
LIMITED 
 EASTERN DRILLING AS 
 SCORPION
COURAGEOUS LTD. 
 SCORPION DEEPWATER LTD. 

SCORPION DRILLING LTD. 
 SCORPION
FREEDOM LTD. 
 SCORPION INTERNATIONAL LTD. 

SCORPION INTREPID LTD. 
 SCORPION
OFFSHORE, INC. 
 SCORPION USA EXPATS INC. 

SCORPION VIGILANT LTD. 
 SDS
DRILLING LTD. 
 SEA DRAGON DE MEXICO S. DE R.L. DE C.V 

SEABRAS RIG HOLDCO LTD. 
 SEADRILL
ABU DHABI OPERATIONS LIMITED 
 SEADRILL AMA OPERATIONS LTD. 

SEADRILL AMERICAS, INC. 
 SEADRILL
AQUILA LTD. 
 SEADRILL ARIEL LTD. 

SEADRILL AURIGA LTD. 
 SEADRILL
BRUNEI LTD. 
 SEADRILL CALLISTO LTD. 

SEADRILL CAPITAL SPARES POOL AS 

SEADRILL CAPRICORN LTD. 
 SEADRILL
CARINA LTD. 
 SEADRILL CASTOR PTE LTD. 

SEADRILL COMMON HOLDINGS LTD. 

SEADRILL CRESSIDA LTD. 
 SEADRILL
DEEPWATER CHARTERER LTD. 
 SEADRILL DEEPWATER CONTRACTING LTD. 

SEADRILL DEEPWATER CREWING LTD. 

SEADRILL DEEPWATER HOLDINGS LTD. 

SEADRILL DIONE LTD. 
 SEADRILL
DORADO LTD. 
 SEADRILL DRACO LTD. 

SEADRILL ECLIPSE LTD. 
 SEADRILL
EGYPT OPERATIONS LTD. 
 SEADRILL EMINENCE LTD. 

SEADRILL EQUATORIAL GUINEA LTD. 

SEADRILL FREEDOM LTD. 
 SEADRILL
GCC OPERATIONS LTD. 
 SEADRILL GEMINI LTD. 

SEADRILL GLOBAL SERVICES LTD. 

[Signature page to Investment Agreement] 

 SEADRILL GULF OPERATIONS NEPTUNE LLC 

SEADRILL HYPERION LTD. 
 SEADRILL
INDONESIA LTD. 
 SEADRILL INSURANCE LTD. 

SEADRILL INTERNATIONAL RESOURCING DMCC 

SEADRILL INVEST I LTD. 
 SEADRILL
IVORY COAST OPERATIONS LTD. 
 SEADRILL JACK UP HOLDING LTD. 

SEADRILL JACK-UPS CONTRACTING LTD. 

SEADRILL JANUS LTD. 
 SEADRILL
JUPITER LTD. 
 SEADRILL JV GHANA LTD. 

SEADRILL LABUAN LTD. 
 SEADRILL
LIBRA LTD. 
 SEADRILL LIMITED 

SEADRILL MANAGEMENT AME LTD. 

SEADRILL MANAGEMENT AS 
 SEADRILL
MANAGEMENT LTD. 
 SEADRILL MANAGEMENT SERVICES LTD. 

SEADRILL MIMAS LTD. 
 SEADRILL
MIRA LTD. 
 SEADRILL NEPTUNE LTD. 

SEADRILL NEWFOUNDLAND OPERATIONS LIMITED 

SEADRILL NIGERIA DEEPWATER CONTRACTING LTD. 

SEADRILL OBERON LTD. 
 SEADRILL OFFSHORE AS 

SEADRILL OFFSHORE MALAYSIA SDN. BHD 
 SEADRILL
OPERATIONS DE MEXICO, S. DE R.L. DE C.V 
 SEADRILL ORION LTD. 

SEADRILL PAYROLL LTD. 
 SEADRILL
PROSPERO LTD. 
 SEADRILL PROTEUS LTD. 

SEADRILL RHEA LTD. 
 SEADRILL
SATURN LTD. 
 SEADRILL TELESTO LTD. 

SEADRILL TELLUS LTD. 
 SEADRILL
TETHYS LTD. 
 SEADRILL TITAN LTD. 

SEADRILL TITANIA SARL 
 SEADRILL
TUCANA LTD. 
 SEADRILL UK LTD. 

SEADRILL UMBRIEL LTD. 

 Company Parties’ Signature Page to 

the Investment Agreement 
 SEADRILL VELA
LIMITED 
 SEADRILL VIETNAM LTD. 
  

			
	 By:
	 	 /s/ Georgina E. Sousa

	 Name:
	 	 Georgina E. Sousa

	 Title:
	 	 Authorized Signatory

 Company Parties’ Signature Page to 

the Investment Agreement 
 GOLDEN DREAM
SHIPPING COMPANY LIMITED 
 SEADRILL AUSTRALIA PTE LTD. 

SEADRILL CASTOR LTD. 
 SEADRILL DEEPWATER UNITS PTE LTD. 

SEADRILL FAR EAST LTD. 
 SEADRILL HOLDINGS SINGAPORE PTE LTD 

SEADRILL JANUS LIMITED 
 SEADRILL MANAGEMENT (S) PTE LTD. 

SEADRILL OFFSHORE SINGAPORE PTE LTD. 
 SEADRILL PEGASUS PTE. LTD.

 SEADRILL LARISSA LIMITED 
 SEADRILL (DALIAN) CONSULTING LTD.

  

			
	 By:
	 	 /s/ Lee Geok Hiang

	 Name:
	 	 Lee Geok Hiang

	 Title:
	 	 Authorized Director

 Company Parties’ Signature Page to 

the Investment Agreement 
 NORTH
ATLANTIC DRILLING LTD. 
 NORTH ATLANTIC ALPHA LTD. 
 NORTH
ATLANTIC CREW AS 
 NORTH ATLANTIC CREWING LTD. 
 NORTH ATLANTIC
DRILLING LTD. 
 NORTH ATLANTIC DRILLING UK LTD. 
 NORTH
ATLANTIC ELARA LTD. 
 NORTH ATLANTIC EPSILON LTD. 
 NORTH
ATLANTIC HELENE LTD. 
 NORTH ATLANTIC KARI LTD. 
 NORTH
ATLANTIC LINUS CHARTERER LTD. 
 NORTH ATLANTIC MANAGEMENT AS 

NORTH ATLANTIC NAVIGATOR LTD. 
 NORTH ATLANTIC NORWAY LTD. 

NORTH ATLANTIC PHOENIX LTD. 
 NORTH ATLANTIC RIGEL LTD. 

NORTH ATLANTIC SUPPORT SERVICES LTD. 
 NORTH ATLANTIC VENTURE LTD.

  

			
	 By:
	 	 /s/ Georgina E. Sousa

	 Name:
	 	 Georgina E. Sousa

	 Title:
	 	 Authorized Signatory

 Company Parties’ Signature Page to 

the Investment Agreement 

NORTH ATLANTIC MANAGEMENT LLC 
  

			
	 By:
	 	 /s/ Alf Løvdal

	 Name:
	 	 Alf Ragnar Løvdal 

	 Title:
	 	 Director

 Company Parties’ Signature Page to 

the Investment Agreement 

SCORPION DEEPWATER BV 
 SCORPION
NEDERLANDSE BV 
  

			
	 By:
	 	 /s/ Jon Olav Østhus

	 Name:
	 	 Jon Olav Østhus

	 Title:
	 	 Director

 Company Parties’ Signature Page to 

the Investment Agreement 

SCORPION SERVICOS OFFSHORE LTDA. 

By: Scorpion International Ltd. 

Its: Shareholder 
  

			
	 By:
	 	 /s/ Jon Olav Østhus

	 Name:
	 	 Jon Olav Østhus

	 Title:
	 	 Authorized Director

 Company Parties’ Signature Page to 

the Investment Agreement 

SEABRAS HOLDINGS GMBH 
  

			
	 By:
	 	 /s/ Jon Olav Østhus

	 Name:
	 	 Jon Olav Østhus

	 Title:
	 	 Authorized Signatory

 Company Parties’ Signature Page to 

the Investment Agreement 

SEABRAS RIG HOLDING GMBH 
  

			
	 By:
	 	 /s/ Jon Olav Østhus

	 Name:
	 	 Jon Olav Østhus

	 Title:
	 	 Authorized Signatory

 Company Parties’ Signature Page to 

the Investment Agreement 
  

			
	SEABRAS SERVICOS DE PETROLEO SA
	
	By: Seadrill UK Ltd.
	Its: Shareholder
		
		 	By: /s/ David Sneddon                            
		 	Name: David Sneddon
		 	Title: Authorized Director
	
	By: Seadrill Common Holdings Ltd.
	Its: Shareholder
	
	                By: /s/ Jon Olav Østhus          
                      
	                Name: Jon Olav Østhus
	                Title: Authorized Director

 Company Parties’ Signature Page to 

the Investment Agreement 
  

	
	 SEADRILL ANGOLA LTDA.

	
	 By: /s/ Roger
Åserød                                      
      

	 Name: Roger Åserød

	 Title: Director

	
	 By: /s/ Alok Jha
                                         
         

	 Name: Alok Jha

	 Title: Director

	
	 By: /s/ Renato
Moure                                6/9/17

	 Name: Renato Moure

	 Title: Director

 Company Parties’ Signature Page to 

the Investment Agreement 

SEADRILL JACK UP I BV 
 SEADRILL
SAUDI I BV 
 SEADRILL SAUDI II BV 
  

			
	 By:
	 	 /s/ Jon Olav Østhus

	 Name:
	 	 Jon Olav Østhus

	 Title:
	 	 Director

		
	 By:
	 	 /s/ Ieva Zigmantaite

	 Name:
	 	 Ieva Zigmantaite

	 Title:
	 	 Director

 Company Parties’ Signature Page to 

the Investment Agreement 
  

			
	 SEADRILL JACK UP II BV

		
	 By:
	 	 /s/ Jon Olav Østhus

	 Name: Jon Olav Østhus

	 Title: Director

		
	 By:
	 	 /s/ Johannes Maria Anonius

	 Name: Johannes Maria
Anonius                5.9.2017

	 Title: Director

 Company Parties’ Signature Page to 

the Investment Agreement 
  

			
	 SEADRILL MIRA HUNGARY KFT.

SEADRILL NEPTUNE HUNGARY KFT.

		
	 By:
	 	 /s/ Jon Olav Østhus

	 Name: Jon Olav Østhus

	 Title: Director

 Company Parties’ Signature Page to 

the Investment Agreement 

SEADRILL NIGERIA OPERATIONS LTD. 
  

			
	         By:
	 	 /s/ Thompson Tatua

	         Name:
	 	 Thompson Tatua

	         Title:
	 	 Director

  

			
	
	         By:
	 	 /s/ Grant Creed

	         Name:
	 	 Grant Creed

	         Title:
	 	 Director

 Company Parties’ Signature Page to 

the Investment Agreement 

SEADRILL OFFSHORE NIGERIA LTD. 
 By: Seadrill UK
Ltd. 
 Its: Shareholder 
  

					
		 	 By:
	 	 /s/ David Sneddon

		 	 Name: David Sneddon

		 	 Title: Authorized Director

 By: Seadrill Limited 

Its: Shareholder 
  

					
		 	 By:
	 	 /s/ Georgina E. Sousa

		 	 Name: Georgina E. Sousa

		 	 Title: Authorized Signatory

 Company Parties’ Signature Page to 

the Investment Agreement 

SEADRILL SERVICOS DE PETROLEO LTDA. 

By: Eastern Drilling AS 
 Its:
Shareholder 
  

			
	             By:
	 	 /s/ Jon Olav Østhus

	             Name: Jon Olav Østhus

            Title: Authorized Director

 By: Seadrill Offshore AS 

Its: Shareholder 
  

			
	             By:
	 	 /s/ Jon Olav Østhus

	             Name: Jon Olav Østhus

            Title: Authorized Director

 Company Parties’ Signature Page to 

the Investment Agreement 
 SEVAN
INVESTIMENTOS DO BRASIL LTDA 
 By: Sevan Drilling Limited 

Its: Shareholder 
  

			
	             By:
	 	 /s/ Georgina E. Sousa

	             Name: Georgina E. Sousa

            Title: Authorized Signatory

 By: Sevan Drilling Rig IX Pte. 

Its: Shareholder 

            By: Sevan Drilling Limited 

            Its: Shareholder 

 

			
	
                       
 By:
	 	 /s/ Georgina E. Sousa

	
                        
Name: Georgina E. Sousa

                        
Title: Authorized Signatory

 Company Parties’ Signature Page to 

the Investment Agreement 

SUBSEA DRILLING (IV) LIMITED 
  

			
	 By:
	 	 /s/ Livar Voll

	 Name: Livar Voll

Title: Authorized Director

 Company Parties’ Signature Page to 

the Investment Agreement 

SUBSEA DRILLING (III) LIMITED 
  

			
	 By:
	 	 /s/ Jon Olav Østhus

	 Name: Jon Olav Østhus

Title: Authorized Director

 Company Parties’ Signature Page to 

the Investment Agreement 
 SEVAN
DRILLING LIMITED 
 SEVAN BRASIL LTD. 
 SEVAN DEVELOPER LTD.

 SEVAN DRILLER LTD. 
 SEVAN DRILLING ASA 

SEVAN DRILLING LIMITED (UK) 
 SEVAN DRILLING LTD. (BERMUDA) 

SEVAN DRILLING MANAGEMENT AS 
 SEVAN DRILLING NORTH AMERICA LLC

 SEVAN DRILLING RIG II AS 
 SEVAN DRILLING RIG V AS 

SEVAN DRILLING RIG VI AS 
  

			
	 By:
	 	 /s/ Georgina E. Sousa

	 Name:
	 	 Georgina E. Sousa

	 Title:
	 	 Authorized Signatory

 Company Parties’ Signature Page to 

the Investment Agreement 

SEVAN DRILLING PTE LTD. 
 SEVAN
DRILLING RIG II PTE LTD. 
 SEVAN DRILLING RIG IX PTE LTD. 

SEVAN DRILLING RIG V PTE LTD. 

SEVAN DRILLING RIG VI PTE. LTD. 
  

			
	
		
	By:	 	/s/ Lee Geok Hiang
	Name: Lee Geok Hiang
	Title: Authorized Director

 Company Parties’ Signature Page to 

the Investment Agreement 
  

							
	SEVAN MARINE SERVICOS DE PERFURACAO LTDA

							
	
	 By: Sevan Drilling Rig IX Pte.

Its: Shareholder

							
		
		 	 By: Sevan Drilling Limited

		 	 Its: Shareholder

							
				
		 		 	 By:
	 	 /s/ Georgina E. Sousa

		 		 	 Name:
	 	 Georgina E. Sousa

		 		 	 Title:
	 	 Authorized Signatory

  

							
	
	 By: Sevan Investimentos do Brasil Ltda

Its: Shareholder

							
		
		 	 By: Sevan Drilling Limited

		 	 Its: Shareholder

							
				
		 		 	 By:
	 	 /s/ Georgina E. Sousa

		 		 	 Name:
	 	 Georgina E. Sousa

		 		 	 Title:
	 	 Authorized Signatory

  

							
	
	 By: Sevan Drilling Rig IX Pte.

Its: Shareholder

							
		
		 	 By: Sevan Drilling Limited

		 	 Its: Shareholder

							
				
		 		 	 By:
	 	 /s/ Georgina E. Sousa

		 		 	 Name:
	 	 Georgina E. Sousa

		 		 	 Title:
	 	 Authorized Signatory

  

 Company Parties’ Signature Page to 

the Investment Agreement 

SEVAN LOUISIANA HUNGARY KFT. 

			
		
	 By:
	 	 /s/ Scott Mcreaken

	 Name: Scott Mcreaken

	 Title: Director

 Company Parties’ Signature Page to 

the Investment Agreement 

SOAS SERVICOS DE PETROLEO LTDA. 

By: Eastern Drilling AS 
 Its:
Shareholder 
  

			
	
		
	             By:
	 	 /s/ Jon Olav Østhus

	            Name: Jon Olav Østhus
	            Title : Authorized Director

 By: Seadrill Offshore AS 

Its: Shareholder 
  

			
	
		
	             By:
	 	 /s/ Jon Olav Østhus

	            Name: Jon Olav Østhus
	            Title: Authorized Director

 
			
	 [COMMITMENT PARTIES]

		
	 By:
	 	
		 	 Name:

		 	 Title:

 [Signature page to Investment Agreement] 

 SCHEDULE 1 

Debt Commitment Schedule 
 Equity
Commitment Schedule 

  
 Sch. 1-1 

 SCHEDULE 2 

Form of Joinder Agreement 

JOINDER AGREEMENT 
 This joinder
agreement (the “Joinder Agreement”) to the Investment Agreement dated September [•], 2017 (as amended, supplemented or otherwise modified from time to time, the “Investment Agreement”), between
the Company (as defined in the Investment Agreement), the other Company Parties (as defined in the Investment Agreement) and the Commitment Parties (as defined in the Investment Agreement) is executed and delivered by
                             (the “Joining Party”) as of
                    , 201     (the “Joinder Date”). 

Each capitalized term used herein but not otherwise defined shall have the meaning set forth in the Investment Agreement. 

Agreement to be Bound. The Joining Party hereby agrees to be bound by all of the terms of the Investment Agreement, a copy of which is
attached to this Joinder Agreement as Annex I (as the same has been or may be hereafter amended, restated or otherwise modified from time to time in accordance with the provisions hereof), as a Commitment Party for all purposes under the Investment
Agreement. 
 Representations and Warranties. The Joining Party hereby severally and not jointly makes the representations and
warranties given by the Commitment Parties set forth in Section 4 of the Investment Agreement to the Company Parties as of the date of this Joinder Agreement. 

Governing Law. This Joinder Agreement shall be governed by and construed in accordance with the internal laws of the State of New York.

 [Signature pages follow] 

  
 Sch. 2-1 

 SCHEDULE 3 

Registration Rights Agreement Term Sheet 

SEADRILL LIMITED 

Registration Rights Term Sheet1 

This indicative summary of terms and conditions (this “Registration Rights Term Sheet”) is for
discussion purposes only. This Registration Rights Term Sheet does not constitute an agreement or an offer to enter into an agreement to purchase equity securities or the rights associated with such equity securities described herein or otherwise.
Such an agreement will arise only under definitive documentation (the “Registration Rights Agreement”) duly executed by the parties in accordance with its terms and is further subject to, among other things, the
final order of the Bankruptcy Court confirming the Plan and the effectiveness of the Plan. This Registration Rights Term Sheet does not attempt to describe all of the terms, conditions and requirements that would pertain to the purchase of equity
securities or the rights associated with such equity securities described herein, but rather is intended to outline certain basic items around which the equity investment will be structured. This Registration Rights Term Sheet is not intended to
limit the scope of discussion or negotiation of any and all matters whether or not set forth herein. All dollar amounts, where not otherwise specified, are in United States dollars. 

 

			
	 Issuer:
	  	 Seadrill Limited, a Bermuda company, or New Seadrill Limited, a Bermuda company (such entity, the
“Issuer”)

		
	Investor Parties to Registration Rights Agreement:	  	 Hemen Investments Limited, a Cyprus holding company (“Hemen”)

 
 Centerbridge Credit Partners L.P. (along with certain of its
affiliates, “Centerbridge”)
  

Certain funds and/or accounts that are managed, advised or sub-advised by each of Aristeia Capital
L.L.C., GLG Partners LP, Saba Capital Management LP and Whitebox Advisors, LLC or such Person’s affiliate(s), in each case, that are signatories to the Investment Agreement (collectively, the “Select Commitment
Parties”).

	
	Registration Rights
		
	 Exemption from SEC Registration:
	  	 The Equity Securities issued and sold pursuant to the Investment Agreement will be issued and sold in reliance upon an
exemption from registration under Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), or another exemption thereunder, and will therefore be “restricted securities” within the
meaning of Rule 144 under the Securities Act.

		
	 Registrable Securities:
	  	 “Registrable Securities” means each of the following: (a) any Equity Securities issued to the
Commitment Parties as contemplated by the Investment Agreement (including any Equity Securities owned by any of the Commitment Parties as a result of, or issuable upon, the conversion, exchange or exercise of options, warrants and
other

  

	1 	 Capitalized terms used but not defined in this Registration Rights Term Sheet have the meanings given to such
terms in the Investment Agreement. 

			
		  	 securities convertible into, or exchangeable or exercisable for (at any time or upon the occurrence of any event or
contingency and without regard to any vesting or other conditions to which such securities may be subject) such Equity Securities; (b) any other Equity Securities acquired or owned by any of the Commitment Parties prior to the effectiveness of
the Resale Registration Statement, or acquired or owned by any of the Commitment Parties after the effectiveness of the Resale Registration Statement if such Commitment Party is an Affiliate of the Issuer and (c) any Equity Securities issued or
issuable to any of the Commitment Parties with respect to the Registrable Securities by way of stock or unit dividend or stock or unit split or in connection with a combination of shares or units, recapitalization, merger, consolidation or other
reorganization or otherwise and any Equity Securities, as the case may be, issuable upon conversion, exercise or exchange thereof; provided that any such Registrable Securities shall cease to be Registrable Securities when (i) a Registration
Statement covering such Registrable Securities has been declared effective under the Securities Act by the SEC and such Registrable Securities have been disposed of pursuant to such effective Registration Statement, (ii) such Registrable
Securities are sold in a private transaction in which the transferor’s rights under the Registration Rights Agreement are not assigned to the transferee of such securities, (iii) the date on which such Registrable Securities have been
disposed of pursuant to Rule 144 or (iv) the date on which such Registrable Securities cease to be outstanding.

		
	 Restrictions on Transfer:
	  	 Absent registration under the Securities Act, sales of Registrable Securities may be made pursuant to one or more exemptions
under the Securities Act, including Rule 144A, Regulation S and Rule 144 under the Securities Act (subject to holding periods and limitations on sales by affiliates) and, if applicable, in accordance with applicable
non-U.S. securities laws.
  

The Issuer shall at all times use commercially reasonable efforts to make available information necessary to comply with Rule 144 and Rule 144A
under the Securities Act with respect to resales of Registrable Securities to the extent required to enable holders of Registrable Securities to sell without registration within the limitations of the exemptions provided by Rule 144 and Rule
144A.

		
	 Registration Rights2:
	  	 The Issuer shall use commercially reasonable efforts to file an initial registration statement on Form F-13 with the SEC within five (5) Business Days following the date of the entry of the confirmation order (the “Confirmation Order”)
of the Bankruptcy Court confirming the Plan (the “Registration Statement Filing Date”), which will cover the sale, resale or other distribution on a continuous basis pursuant to Rule 415 under the Securities Act of the
Registrable Securities (the “Resale Registration Statement”).

  

 

	2 	 Note: Similar detail to be agreed in respect of Oslo listing following discussions with Norwegian counsel to
the company to the extent applicable. 

	3	 Note: Form of registration statement to be confirmed.

  
 2 

			
		  	 The Issuer shall use commercially reasonable efforts to have the Resale Registration Statement declared effective by the
SEC (the “Registration Statement Effectiveness”) and to effectuate the transactions set forth herein as soon as reasonably practicable following the Registration Statement Filing Date.

 
 It is understood that in the event the Issuer becomes a WKSI
or is otherwise eligible to use Form F-3, it shall use commercially reasonable efforts to convert the Resale Registration Statement on Form F-1 into a Resale
Registration Statement on Form F-3 as soon as reasonably practicable. If the Issuer thereafter becomes ineligible to use Form F-3, it shall use commercially reasonable
efforts to file and obtain an effective Resale Registration Statement on Form F-1 as soon as reasonably practicable.
  

The Issuer shall inform all the shareholders named in the Resale Registration Statement of its effectiveness on the same Business Day as
effectiveness is obtained and shall file a final prospectus under Rule 424 with the SEC to the extent required. The Issuer shall maintain the effectiveness of the Resale Registration Statement until the date on which all of the Registrable
Securities covered by the Resale Registration Statement have been sold.
  

The plan of distribution of the Resale Registration Statement shall provide for customary means of disposition of the Registrable Securities
covered by the Resale Registration Statement.

		
	 Underwritten shelf

takedown, demand and

piggy back registration

rights:
	  	 (a) Hemen, (b) Centerbridge and (c) the Select Commitment Parties (each, a “Qualified
Holder”) may request to sell all or a portion of its Registrable Securities in an underwritten offering (including block trades) that is registered pursuant to the Resale Registration Statement (“Underwritten Shelf
Takedown”), subject to the priority allocations as set forth below; provided, however, that no Qualified Holder shall be entitled to make a demand for any Underwritten Shelf Takedown unless such Qualified Holder holds at least 5%
of the outstanding Equity Securities, calculated at the time of such demand, but shall be entitled to piggyback registration rights as set forth herein.
  

In connection with one or more Underwritten Shelf Takedowns relating to the first
$200 million4 of Registrable Securities, any cutback in connection with such offering shall be allocated as follows: (i) Hemen shall be entitled to 54% of the Registrable Securities in
such Underwritten Shelf Takedown, (ii) Centerbridge shall be entitled to 6% of the Registrable Securities in such Underwritten Shelf Takedown and (iii) the Select Commitment

 

	4	 Note: This should correspond to the amount that is
actually purchased ($200m less whatever is taken up in the $25m equity rights offering). 

  
 3 

			
		  	 Parties shall be entitled to 40% of the Registrable Securities in such Underwritten Shelf Takedown (such securities, the
“Priority Shares”). Thereafter (i.e., following the sale of the first $200 million5 of Registrable Securities), any cutback in connection with an Underwritten Shelf
Takedown shall be allocated on a pro rata basis based off the Registrable Securities attributable to the aggregate New Secured Notes purchased by each Commitment Party at Closing. The holders of a majority of the Registrable Securities
requested to be included in an Underwritten Shelf Takedown shall have the right to select the investment banker(s) and manager(s) to administer the offering, subject to the Issuer’s approval which shall not be unreasonably withheld, conditioned
or delayed, and determine the sale price.
  
 In addition to
the above registration rights for Underwritten Shelf Takedowns, (i) each Qualified Holder that holds at least 5% of the outstanding Equity Securities, calculated at the time of such demand, shall receive unlimited demand resale registration
rights (if there is no effective Resale Registration Statement and the terms of the Registration Rights Agreement would otherwise require that the Resale Registration Statement be effective) and (ii) each Qualified Holder shall receive
unlimited piggyback registration rights. The demand and piggyback registration rights shall be transferable (A) in connection with any private sale transaction of Registrable Securities of $25 million or more and (B) in connection
with any transfer of Registrable Securities to an affiliate.
  

Notwithstanding the foregoing, the Issuer will not be required to effect (x) more than four (4) Underwritten Shelf Takedowns
(together with any demand registrations) in any 12-month period; (y) an Underwritten Shelf Takedown or demand registration within sixty (60) days (or such longer period specified in any applicable lock-up agreement entered into with underwriters) after the consummation of a previous Underwritten Shelf Takedown or demand registration or (z) any Underwritten Shelf Takedown or demand registration if the
aggregate proceeds expected to be received from the sale of the Registrable Securities requested to be sold in such Underwritten Shelf Takedown or demand registration, in the good faith judgment of the managing underwriter(s) therefor (or the Issuer
if such demand registration is not underwritten), is less than $50 million.
  

Subject to the cutback provisions set forth above, for any piggyback registration that is an underwritten offering initiated by the Issuer for
a primary offering, if the managing underwriter(s) advise the Issuer in writing that in their opinion the number of Registrable Securities requested to be included exceeds the number of securities which can be sold without adversely affecting the
marketability, proposed offering price, timing or method of distribution of the offering, the

  

 

	5	 Note: This should correspond to the amount that is
actually purchased ($200m less whatever is taken up in the $25m equity rights offering). 

  
 4 

			
		  	 Issuer shall include in such registration the maximum amount of securities that would not have such adverse effect:
(i) first, the securities offered by the Issuer; (ii) second, the Priority Securities; (iii) third, up to the full amount of the Registrable Securities requested to be included, reduced pro rata among the respective holders
thereof on the basis of the amount of Registrable Securities owned by each such holder; and (iv) fourth, any other securities to be included pursuant to a registration request from such other holders in such proportions as the Issuer and those
holders may agree.
  
 The Issuer shall have the right to
select the managing underwriter(s) for any offering initiated by the Issuer under which the Qualified Holders have piggyback rights, reasonably acceptable to the holders of a majority of Registrable Securities, if any, to be included in such
offering, which approval shall not be unreasonably withheld or delayed.
  

In any underwritten offering, the Issuer shall use commercially reasonable efforts to enter into customary underwriting agreements with the
managing underwriter(s) including, without limitation, supporting, and paying the fees for, the Issuer’s independent certified public accountant to provide comfort letters to the underwriters and agreeing to all other customary provisions in
similar underwritten offerings.

		
	 Listing:
	  	 The Issuer shall, as soon as reasonably practicable following the Confirmation Order and prior to the Effective Date, submit
listing applications to the Oslo Stock Exchange and the New York Stock Exchange (or an alternate “national securities exchange” (within the meaning of the Exchange Act), as reasonably determined by the Issuer’s board in consultation
with the Commitment Parties) for the listing thereon of the Equity Securities.
  

The Issuer shall use commercially reasonable efforts to (i) cause the Equity Securities to be listed on the Oslo Stock Exchange and
(ii) cause the Equity Securities to be listed on the New York Stock Exchange (or an alternate “national securities exchange” (within the meaning of the Exchange Act), as reasonably determined by the Issuer’s board in consultation
with the Commitment Parties) and registered under the Exchange Act concurrently with the Registration Statement Effectiveness.

		
	 Fees and Expenses of

Registration and Listing:
	  	 To be borne by the Issuer (other than underwriting fees, discounts, selling commissions and stock transfer taxes of a selling
shareholder).
  
 The Issuer will pay reasonable and
documented fees and expenses within 30 calendar days of receipt of the applicable invoice of one single special counsel to represent all of the participating Qualified Holders (“Investors’ Counsel”) selected: (i) in
the case of an Underwritten Shelf Takedown, by the holders of a majority of the Registrable Securities requesting such Underwritten Shelf Takedown; and (ii) in the case of a Piggyback Registration, the holders of a majority of the Registrable
Securities included in such Piggyback Registration.

  
 5 

			
	 Lock-Up:
	  	 In connection with the first (and, for the avoidance of doubt, only the first) public/underwritten offering
(regardless of whether such offering is a primary or secondary offering and including an Underwritten Shelf Takedown), each Qualified Holder agrees that it shall not, during the 60 days after the pricing (the “Lock-Up Period”), directly or indirectly, offer, pledge, assign, encumber, announce the intention to sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to
sell, or otherwise transfer or dispose of any of their Acquired Equity Securities, Granted Equity Securities or Equity Securities issued to such Qualified Holder in connection with the Structuring Fee to any Person; provided, however,
that the Lock-Up Period shall not apply to the following: (i) the Equity Securities issued to a Commitment Party in exchange for such party’s Unsecured Notes under the Plan (i.e., the 1145 exempt
Equity Securities); (ii) resales of a maximum of 15% of the applicable Commitment Party’s Equity Securities as of the Closing Date pursuant to the Resale Registration Statement; (iii) a tender offer for the Equity Securities approved by
the Board of Directors of the Issuer; (iv) sales to the Issuer pursuant to an authorized share repurchase program in accordance with Rule 10b5-1 under the Exchange Act; (v) Registrable Securities
included in the Underwritten Shelf Takedown; (vi) transfers of Equity Securities between affiliate entities of a Commitment Party; or (vii) sales of Equity Securities pursuant to such registered offering. For the avoidance of doubt,
(a) the Lock-Up Period shall not apply to any Equity Securities sold under one or more exemptions from registration under the Securities Act, but shall apply to sales on the Oslo Stock Exchange and
(b) before the commencement of, and after the termination or expiration of, the Lockup Period, there shall be no restrictions on the ability of any Qualified Holder to resell its Registrable Securities through the Resale Registration Statement
in non-underwritten offerings.
  

The Lock-Up Period may be extended for up to an additional 30 days (for an aggregate of 90 days), at
the reasonable request of the managing underwriters/ lead book-runner/ manager.

		
	 Review and Comment:
	  	 In connection with an Underwritten Shelf Takedown or Piggyback Registration, at least 5 Business Days before filing a
registration statement (other than the initial registration statement, in which case such period shall be at least 15 Business Days), prospectus, prospectus supplement or an amendment to the foregoing with the SEC, the Issuer shall furnish
Investors’ Counsel with such documents, and such documents are subject to the reasonable review, comment and approval of such counsel before filing.

		
	 Holder Information:
	  	 Holders seeking registration of Registrable Securities will be required to timely provide customary information to allow
the Issuer to list such holders as selling securityholders in a registration statement or prospectus.

  
 6 

			
	 Indemnification:
	  	 Customary cross-indemnification and contribution provisions by the Issuer, on the one hand, and the Commitment Parties, on
the other hand.

		
	 Other Covenants:
	  	 Such other covenants and agreements as are customary for registration rights agreements that the Issuer and the Commitment
Parties shall mutually agree.

		
	 Removal of Legends:
	  	 Substantially consistent with Section 5.12 of the Investment Agreement as applied to the Registrable
Securities.

		
	 Successors and Assigns:
	  	 The Issuer may assign its rights and obligations under the Registration Rights Agreement with the consent of the Commitment
Parties holding a majority of the Registrable Securities on the Closing Date in connection with a sale or acquisition of the Issuer in which the successor or acquiring person agrees in writing to assume all of the Issuer’s rights and
obligations under the Registration Rights Agreement.
 Each Commitment Party may assign its rights under the Registration Rights Agreement to
any affiliate of such Commitment Party without the Issuer’s consent; provided that such transferee shall be required to become a party to the Registration Rights Agreement.

		
	 Amendments:
	  	 Amendments or modifications to the Registration Rights Agreement, and any waivers under the Registration Rights Agreement,
shall require the consent of: (i) Hemen and Centerbridge and (ii) Select Commitment Parties holding 2/3rds of the Registrable Securities held by all Select Commitment Parties.

		
	 Governing Law:
	  	 New York.

  
 7 

 SCHEDULE 4 

Material Documents 
  

	1.	 Definitive Documents (as defined in the Restructuring Support and
Lock-Up Agreement) 

  

	2.	 Registration Rights Agreement 

 

	3.	 New Secured Notes 

  
 Sch. 4-1 

 SCHEDULE 5 

Notice Information 
 Select Commitment Parties

  
 Sch. 5-1 

 EXHIBIT A 

Form of Rights Offering Procedures 

SEADRILL LIMITED 
 DEBT
RIGHTS OFFERING PROCEDURES 
 The New Seadrill Common Stock and the NSNCo New Secured Notes (collectively, the “Debt Rights
Offering Securities”) are distributed and issued (the “Debt Rights Offering”) without registration under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemption from
registration provided by Section 4(a)(2) thereof, Regulation D and/or Regulation S. 
 None of the Subscription Rights (defined
below) or Debt Rights Offering Securities issuable upon exercise of such rights distributed pursuant to these Debt Rights Offering Procedures have been or, at the time of original issuance, will be registered under the Securities Act, or the
securities laws of any state. 
 No Subscription Rights may be sold, transferred, assigned, pledged, hypothecated, participated,
donated or otherwise encumbered or disposed of, directly or indirectly (including through derivatives, options, swaps, forward sales or other transactions in which any person receives the right to own or acquire any current or future interest in the
Subscription Rights, the Debt Rights Offering Securities, the Applicable Claims (defined below) and any related claims) (each of the above, a “Transfer”); provided, however, that holding securities attesting ownership of
Subscription Rights in an account with a broker-dealer where the broker-dealer holds a security interest or other encumbrance over property in the account generally, which security interest or other encumbrance is released upon transfer of such
securities, shall not constitute a “Transfer” for purposes hereof. 
 No Debt Rights Offering Securities may be sold or
transferred except pursuant to an exemption from registration under the Securities Act or the securities laws of any state. 
 These
Debt Rights Offering Procedures are being distributed and communicated only to Eligible Holders (defined below). The Debt Rights Offering Securities are available only to, and any invitation, offer or agreement to purchase will be entered into only
with Eligible Holders. Any person who is not a Eligible Holder should not act or rely on this document or any of its contents. 
 The
distribution or communication of these Debt Rights Offering Procedures and the issue of the Debt Rights Offering Securities in certain jurisdictions may be restricted by law. No action has been taken or will be taken to permit the distribution or
communication of these Debt Rights Offering Procedures in any jurisdiction where any action for that purpose may be required. Accordingly, these Debt Rights Offering Procedures may not be distributed or communicated, and the Debt Rights Offering
Securities may not be subscribed, purchased or issued, in any jurisdiction except in 

 
circumstances where such distribution, communication, subscription, purchase or issue would comply with all applicable laws and regulations without the need for the issuer to take any action or
obtain any consent, approval or authorization therefor except for any notice filings required under U.S. federal and applicable state securities laws. 

Each Rights Offering Security issued upon exercise of a Subscription Right, and each certificate issued in exchange for or upon the
transfer, sale or assignment of any such Debt Rights Offering Securities, shall be stamped or otherwise imprinted with a legend in substantially the following form: 

[”[THIS NOTE HAS/THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE] NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION AND, ACCORDINGLY, NEITHER THE [NOTE/SHARES] NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED
OR OTHERWISE DISPOSED OF WITHIN THE UNITED STATES WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER ON ITS OWN BEHALF AND BEHALF OF ANY INVESTOR ACCOUNT
FOR WHICH IT HAS PURCHASED [NOTE/SHARES] (1) REPRESENTS THAT (A) IT IS AN “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501 UNDER THE SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THE [NOTE/SHARES] IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, (2) AGREES THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THE [NOTE/SHARES] OR ANY BENEFICIAL INTEREST THEREIN EXCEPT (A) TO THE ISSUER OR ANY
SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE [NOTE/SHARES] ARE ELIGIBLE FOR RESALE PURSUANT TO 144A UNDER THE SECURITIES ACT, INSIDE THE UNITED STATES TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE
144A UNDER THE SECURITIES ACT, (C) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT (BASED UPON AN OPINION OF COUNSEL IF THE ISSUER SO REASONABLY REQUESTS), OR (E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND, IN EACH CASE IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM [THIS NOTE IS/THESE SHARES ARE] TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. AS
USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANING AS DEFINED BY REGULATION S UNDER THE SECURITIES ACT.”] 

  
 ii 

 [In the case of Debt Rights Offering Securities sold pursuant to Regulation S, each
certificate shall additionally be stamped or otherwise imprinted with a legend in substantially the following form: 
 THESE
SECURITIES WERE ISSUED IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT, OR NOT FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS PURSUANT TO REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). ACCORDINGLY,
NONE OF THE SECURITIES TO WHICH THIS CERTIFICATE RELATES HAVE BEEN REGISTERED UNDER THE SECURITIES ACT, OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION AND, UNLESS SO REGISTERED, THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED WITHIN IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANING AS DEFINED
BY REGULATION S UNDER THE 1933 ACT. 
 [Additional Jurisdiction Legends to Come if Applicable] 

In any member state of the European Economic Area (the “EEA”) that has implemented the EU Prospectus Directive (each, a
“Relevant Member State”), these Debt Rights Offering Procedures are only addressed to and only directed at qualified investors in that Relevant Member State within the meaning of the EU Prospectus Directive. These Debt Rights Offering
Procedures have been prepared on the basis that all offers of Debt Rights Offering Securities within the EEA will be made pursuant to an exemption under the EU Prospectus Directive from the requirement to produce a prospectus for offer of
securities. Accordingly, any person making or intending to make any subscription of Debt Rights Offering Securities within any EEA member state should only do so in circumstances in which no obligation arises to publish a prospectus or a supplement
to a prospectus under the EU Prospectus Directive for such offer. Neither Seadrill Limited, NSNCo nor any person acting on their behalf has authorized, nor do they authorize, the making of any offer of Debt Rights Offering Securities through any
financial intermediary, other than as may be contemplated herein. The expression “EU Prospectus Directive” means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive, to the extent implemented in the
Relevant Member State), and includes any relevant implementing measure in each Relevant Member State and the expression “2010 PD Amending Directive” means Directive 2010/73/EU. 

  
 iii 

 The Debt Rights Offering is being conducted in good faith and in compliance with the
Bankruptcy Code. In accordance with Section 1125(e) of the Bankruptcy Code, a debtor or any of its agents that participate, in good faith and in compliance with the applicable provisions of the Bankruptcy Code, in the offer, issuance, sale, or
purchase of a security offered or sold under the plan of the debtor, of an affiliate participating in a joint plan with the debtor, or of a newly organized successor to the debtor under the plan, is not liable, on account of such participation, for
violation of any applicable law, rule, or regulation governing the offer, issuance, sale or purchase of securities. 

  
 iv 

 Pursuant to the Plan, if Class B3, D3 or F3, constituting the General Unsecured Claims against
Seadrill, NADL, and Sevan, vote as a class to accept the Plan, the Subscription Agent will transmit to Holders of claims of each class that voted to accept the Plan (the “Applicable Claims”) as of the Record Date a certification
form (an “Eligibility Certificate”) to determine if such Holder is an Eligible Holder (defined below) permitted to participate in the Debt Rights Offering. 

An “Eligible Holders” is a Holder of an Applicable Claim as of the Record Date that is: 

 

	 	(1)	 an “Accredited Investor” (as defined by Rule 501 of Regulation D promulgated under the Securities
Act) and, if that person is in a Member State of the EEA that has implemented the EU Prospectus Directive, is a “qualified investor” in that Relevant Member State within the meaning of the EU Prospectus Directive; or 

 

	 	(2)	 is a “Qualified Investor” (defined below) that is not a “U.S. Person” (as defined by Rule
902 of Regulation S promulgated under the Securities Act). 

 The term “Qualified Investor” means: 

 

	 	(1)	 a non-U.S. Person in a Member State of the EEA, that is a “qualified investor” in that Relevant
Member State within the meaning of the EU Prospectus Directive; or 

  

	 	(2)	 a non-U.S. Person not in a Member State of the EEA, that is lawfully entitled subscribe and purchase the Debt
Rights Offering Securities under all applicable securities laws and regulations (whether pursuant to an applicable exemption or otherwise), without the need for any registration, the filing or publication of any prospectus or other action by the
issuer. 

 Each Eligible Holder, seeking to participate in the Debt Rights Offering is required to return the applicable
Eligibility Certificate to the Subscription Agent so as to be actually received by the Subscription Agent by the Eligibility Certificate Deadline ([•], 2017 at 5:00 p.m. New York City time) and is required to certify therein to the ownership of
an Applicable Claim and status as an Eligible Holder. 
 Only those Holders of Applicable Claims that certify that they are Eligible Holders
will have the opportunity to participate in the Debt Rights Offering. Holders of Applicable Claims that do not return the applicable Eligibility Certificate will be deemed to relinquish and waive any right to participate in the Debt Rights Offering.

 Pursuant to the Plan (and in accordance with and subject to the terms and conditions of these Debt Rights Offering Procedures, the
Subscription Form and the Subscription Agreement), if Class B3, D3 or F3, constituting the General Unsecured Claims against Seadrill, NADL, and Sevan, vote as a class to accept the Plan, each Eligible Holder of an Applicable Claim will receive
subscription rights to subscribe for its pro rata share of Debt Rights Offering Securities (the “Subscription Rights”), provided that the Debt Commitment Parties have agreed not to receive Subscription Rights on account of their
Applicable Claims against Seadrill, NADL, and Sevan held as of the Agreement Effective Date (as defined in the Restructuring Support and 

  
 1 

 
Lock-Up Agreement). Holders of claims in a class enumerated above that does not vote as a class to approve the Plan will not receive Subscription Rights in respect of claims in such class. For
the avoidance of doubt, Debt Commitment Parties shall receive Subscription Rights for Applicable Claims acquired by such Debt Commitment Parties after the Agreement Effective Date (as defined in the Restructuring Support and Lock-Up Agreement). 

Eligible Holders (as defined below) should note the following times relating to the Rights Offering: 

 

					
	 Date
	  	 Calendar Date
	  	 Event

	 Record Date
	  	 [•], 2017
	  	 The date and time fixed for the determination of the holders entitled to participate in the Debt Rights
Offering.

			
	 Subscription Commencement Date
	  	 [•], 2017
	  	 Commencement of the Debt Rights Offering.

			
	 Subscription Expiration Deadline
	  	5:00 p.m. New York City time on [•], 2017	  	 The deadline for Eligible Holders of Applicable Claims to subscribe for Debt Rights Offering Securities. The Eligible
Holder’s Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and Subscription Agreement must be received by the Subscription Agent by the Subscription Expiration Deadline.

 
 Eligible Holders who hold Applicable Claims through a broker,
bank, commercial bank, transfer agent, trust company, dealer, or other agent or nominee (as applicable, the “Nominee”) must provide their Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and
Subscription Agreement to allow sufficient time to allow such Nominee to process and deliver the Master Subscription Form to the Subscription Agent by the Subscription Expiration Deadline.

 
 Eligible Holders of Applicable Claims who are not Debt
Commitment Parties (as defined in the Investment Agreement) must deliver the aggregate Purchase Payment by the Subscription Expiration Deadline.
  

Eligible Holders who are Debt Commitment Parties must deliver the aggregate Purchase Price within the third Business Day following receipt of a
Funding Notice (as defined below) in accordance with the terms of the Investment Agreement.

 Terms used and not defined herein shall have the meaning assigned to them in the Plan (as defined below) or
Investment Agreement (as defined in the Plan) as applicable. 

  
 2 

 To Eligible Holders and Nominees of Eligible Holders: 

On September [•], 2017, the Debtors filed their Chapter 11 Plan of Reorganization with the United States Bankruptcy Court
for the [•] (as such plan of reorganization may be amended or modified from time to time in accordance with its terms, the “Plan”), and the disclosure statement with respect to the Plan (as such disclosure statement may be
amended from time to time in accordance with its terms, the “Disclosure Statement”). Pursuant to the Plan, each Holder of an Applicable Claim as of the Record Date that is an Eligible Holder and that has timely and validly completed
and returned an Eligibility Certificate has the right to participate in the Debt Rights Offering in accordance with the terms and conditions of the Subscription Agreement and these Debt Rights Offering Procedures. 

Only Eligible Holders that provide an Eligibility Certificate and complete the Eligibility Questionnaire included as part
of the Subscription Form may participate in the Debt Rights Offering. 
 Pursuant to the Plan, if Class B3, D3 or F3,
constituting the General Unsecured Claims against Seadrill, NADL, and Sevan, vote as a class to accept the Plan, each Eligible Holder of an Applicable Claim (other than a Debt Commitment Party on account of their Applicable Claims against Seadrill,
NADL, and Sevan held as of the Agreement Effective Date) will receive Subscription Rights to subscribe for its pro rata share of Debt Rights Offering Securities, provided that it timely and properly executes and delivers its applicable Subscription
Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and Subscription Agreement to the Subscription Agent or its Nominee, as applicable, in advance of the Subscription Expiration Deadline. Each Nominee will receive a
Master Subscription Form which it shall use to summarize the Subscription Rights exercised by each Eligible Holder of Applicable Claims that timely returns the applicable properly filled out Subscription Form (with accompanying IRS Form W-9 or
appropriate IRS Form W-8, as applicable) and Subscription Agreement to such Nominee. Please note that all Subscription Forms (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and Subscription Agreement must be returned to
the applicable Nominee in sufficient time to allow such Nominee to process and deliver the Master Subscription Form and copies of all Subscription Forms (and the accompanying Subscription Agreements and IRS Forms) prior to the Subscription
Expiration Deadline. 
 No Eligible Holder shall be entitled to participate in the Debt Rights Offering unless the aggregate
Purchase Price (as defined below) for the Debt Rights Offering Securities it subscribes for is received by the Subscription Agent (i) in the case of an Eligible Holder of an Applicable Claim that is not a Debt Commitment Party by the
Subscription Expiration Deadline, and (ii) in the case of an Eligible Holder of an Applicable Claim that is a Debt Commitment Party, on the third Business Day following receipt of a written notice (a “Funding Notice”) delivered
by [•] to the Debt Commitment Parties in accordance with Section 2.4 of the Investment Agreement (the “Backstop Funding Deadline”). No interest is payable on any advanced funding of the Purchase Price except in the case of
Commitment Parties, in which case interest will be calculated and paid under the terms of the Escrow 

  
 4 

 
Agreement. If the Debt Rights Offering is terminated for any reason, your Purchase Price will be returned to you promptly. Debt Commitment Parties may deposit their Purchase Price in the Escrow
Account (as defined below). No interest will be paid on any returned Purchase Price. Any Eligible Holder of an Applicable Claim submitting payment via its Nominee must coordinate such payment with its Nominee in sufficient time to allow the Nominee
to forward such payment to the Subscription Agent by the Subscription Expiration Deadline or the Backstop Funding Deadline, as applicable. 

In order to participate in the Debt Rights Offering, you must complete all the steps outlined below by the Subscription
Expiration Deadline, or the Backstop Funding Deadline, as applicable. If you fail to do so, you shall be deemed to have forever and irrevocably relinquished and waived your right to participate in the Debt Rights Offering. 

 

	 	1.	 Rights Offering 

If Class B3, D3 or F3, constituting the General Unsecured Claims against Seadrill, NADL, and Sevan, vote as a class to accept
the Plan, each Eligible Holder of an Applicable Claim (other than a Debt Commitment Party on account of their Applicable Claims against Seadrill, NADL, and Sevan held as of the Agreement Effective Date) will have the right, but not the obligation,
to participate in the Debt Rights Offering. Only Holders of an Applicable Claim as of the Record Date that validly and timely completed the Eligibility Certificate and the Eligibility Questionnaire included as part of the Subscription Form and that
are Eligible Holders may participate in the Debt Rights Offering. 
 Subject to the terms and conditions set forth in the
Plan, these Debt Rights Offering Procedures, the Subscription Form and the Subscription Agreement, each Eligible Holder is entitled to subscribe for $1,000 Principal Amount of New Secured Notes per $[•] amount of Applicable Claim at a purchase
price of $[•], plus accrued interest if any (the “Purchase Price”). Each Eligible Holder who subscribes for New Secured Notes will also receive [•] shares of Common Stock per $1,000 aggregate principal amount of New
Secured Notes purchased. 
 SUBJECT TO THE TERMS AND CONDITIONS OF THE SUBSCRIPTION AGREEMENT AND THE INVESTMENT
AGREEMENT IN THE CASE OF ANY DEBT COMMITMENT PARTY, ALL SUBSCRIPTIONS SET FORTH IN THE SUBSCRIPTION AGREEMENT ARE IRREVOCABLE. 
  

	 	2.	 Subscription Period 

The Debt Rights Offering will commence on the Subscription Commencement Date and will expire at the Subscription Expiration
Deadline. Each Eligible Holder intending to purchase Debt Rights Offering Securities in the Debt Rights Offering must affirmatively elect to exercise its Subscription Rights in the manner set forth in the Subscription Form and Subscription Agreement
by the Subscription Expiration Deadline. 

  
 5 

 Any exercise of Subscription Rights after the Subscription Expiration Deadline will not be
allowed and any purported exercise received by the Subscription Agent after the Subscription Expiration Deadline, regardless of when the documents or payment relating to such exercise were sent, will not be honored. 

The Debtors may extend the Subscription Expiration Deadline with the consent of the Required Commitment Parties (as defined in
the Investment Agreement), such consent not to be unreasonably withheld, or as required by law. 
  

	 	3.	 Delivery of Subscription Agreement 

Subject to the terms and conditions of the Subscription Agreement, each Eligible Holder may exercise all or any portion of such Eligible
Holder’s Subscription Rights. In order to facilitate the exercise of the Subscription Rights, beginning on the Subscription Commencement Date, the Subscription Agent will send these Debt Rights Offering Procedures, Subscription Form and
Subscription Agreement to each Eligible Holder or its Nominee, as applicable, together with appropriate instructions for the proper completion, due execution and timely delivery of the executed Subscription Form and Subscription Agreement and the
payment of the applicable Purchase Price for its Debt Rights Offering Securities. 
  

	 	4.	 Exercise of Subscription Rights 

(a) In order to validly exercise its Subscription Rights, each Eligible Holder that is not a Debt Commitment Party must: 

 

	 	i.	 return a duly executed Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as
applicable) and Subscription Agreement to the Subscription Agent or its Nominee, as applicable, so that such documents are actually received by the Subscription Agent by the Subscription Expiration Deadline; and 

 

	 	ii.	 at the same time it returns its Subscription Agreement and Subscription Form to the Subscription Agent or its
Nominee, as applicable, but in no event later than the Subscription Expiration Deadline, pay, or arrange for the payment by its Nominee of, the applicable Purchase Price to the Subscription Agent by wire transfer ONLY of immediately available
funds in accordance with the instructions included in the Subscription Form. 

 (b) In order to validly
exercise its Subscription Rights, each Eligible Holder that is a Debt Commitment Party must: 
  

	 	i.	 return a duly executed Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as
applicable) and Subscription Agreement to the Subscription Agent or its Nominee, as applicable, so that such documents are actually received by the Subscription Agent by the Subscription Expiration Deadline; and 

 

	 	ii.	 no later than the Backstop Funding Deadline, pay the applicable Purchase Price to the Debt Securities Escrow
Account established by the Subscription Agent pursuant to the Escrow Agreement by wire transfer ONLY of immediately available funds in accordance with the instructions included in the Subscription Form. 

  
 6 

 ALL DEBT COMMITMENT PARTIES MUST PAY THEIR APPLICABLE PURCHASE PRICE DIRECTLY
TO THE DEBT SECURITIES ESCROW ACCOUNT AND SHOULD NOT PAY THEIR NOMINEES, IF ANY. 
 For those Eligible Holders that hold
Applicable Claims through a Nominee (e.g. bank, broker, custodian, etc.), you must duly complete, execute and return your Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and Subscription Agreement in
accordance with the instructions herein to your Nominee in sufficient time to allow your Nominee to process your instructions and deliver to the Subscription Agent the Master Subscription Form, your completed Subscription Form (with
accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and Subscription Agreement and, solely with respect to the Eligible Holders that are not Debt Commitment Parties, payment of the applicable Purchase Price, payable for the Debt
Rights Offering Securities elected to be purchased by such Eligible Holder, by the Subscription Expiration Deadline. 
 Any
Eligible Holder that does not hold an Applicable Claims through a Nominee must deliver their completed Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and Subscription Agreement and, solely with
respect to the Eligible Holders that are not Debt Commitment Parties, payment of the applicable Purchase Price payable for the Debt Rights Offering Securities elected to be purchased by such Eligible Holder directly to the Subscription Agent on or
before the Subscription Expiration Deadline. In all cases, Eligible Holders that are Debt Commitment Parties must deliver their payment of the applicable Purchase Price payable for the Debt Rights Offering Securities elected to be purchased by such
Eligible Holder directly to the Subscription Agent no later than the Backstop Funding Deadline. 
 In the event that the
funds received by the Subscription Agent from any Eligible Holder do not correspond to the Purchase Price payable for the Debt Rights Offering Securities elected to be purchased by such Eligible Holder, the number of the Debt Rights Offering
Securities deemed to be purchased by such Eligible Holder will be the lesser of (i) the amount of the Debt Rights Offering Securities elected to be purchased by such Eligible Holder and (ii) an amount of the Debt Rights Offering Securities
determined by dividing the amount of the funds received by the Purchase Price. 
 The cash paid to the Subscription Agent in
accordance with these Debt Rights Offering Procedures will be deposited and held by the Subscription Agent in a segregated escrow account designed in escrow agreements mutually satisfactory to each of the Debt Commitment Parties and the Debtors
until administered in connection with the settlement of the Debt Rights Offering on the Effective Date. The Subscription Agent may not use such cash for any other purpose prior to the Effective Date and may not encumber or permit such cash to be
encumbered with any lien or similar encumbrance. The cash held by the Subscription Agent hereunder shall not be deemed part of the Debtors’ bankruptcy estates. 

  
 7 

	 	5.	 Transfer Restriction; Revocation 

The Subscription Rights may not be Transferred after the Record Date. Any attempted Transfer of Subscription Rights by an
Eligible Holder will be cancelled, and neither such Eligible Holder nor the purported transferee will receive any Debt Rights Offering Securities otherwise purchasable on account of such Transferred Subscription Rights. Any Applicable Claim (or
interest therein) Transferred after the Record Date will not be traded with the Subscription Rights attached. 
 Once an
Eligible Holder has properly exercised its Subscription Rights, subject to the terms and conditions of the applicable Subscription Agreement and the Investment Agreement (in the case of any Debt Commitment Party) such exercise will be irrevocable.

  

	 	6.	 Return of Payment 

If the Debt Rights Offering is not consummated, any cash paid to the Subscription Agent will be returned, without interest
except in the case of a Debt Commitment Party, to the applicable Eligible Holder as soon as reasonably practicable, but in any event within five Business Days, after the date on which the Debt Rights Offering is terminated. 

 

	 	7.	 Settlement of the Rights Offering and Distribution of the Debt Rights Offering Securities

 The Debtors intend that the Debt Rights Offering Securities will be issued to the Eligible Holders,
and/or to any Affiliates (as defined in the Subscription Agreement) that the Eligible Holders so designate in the Subscription Form, in book-entry form, and that DTC, or its nominee, will be the holder of record of such Debt Rights Offering
Securities. To the extent DTC is unwilling or unable to make the Debt Rights Offering Securities eligible on the DTC system, the Debt Rights Offering Securities will be issued directly to the Eligible Holder or its designee and such Eligible Holder
or its designee will be the holder of record. 
  

	 	8.	 Minimum Denominations; No Fractional Shares 

All allocations (including each Eligible Holder’s Debt Rights Offering Securities) will be calculated and rounded down to
the nearest whole share or minimum denominations of $1,000 and integral multiples of $1,000 in excess thereof, as applicable. 
  

	 	9.	 Validity of Exercise of Subscription Rights 

All questions concerning the timeliness, viability, form and eligibility of any exercise of Subscription Rights will be
determined in good faith by the Debtors in consultation with the Required Commitment Parties and, if necessary, subject to a final and binding determination by the Bankruptcy Court. The Debtors may waive any defect or irregularity in, or permit such
defect or irregularity to be corrected within such time as they may determine in good faith, or reject, the purported exercise of any Subscription Rights. Subscription Agreements will be deemed not to have been received or accepted until all
irregularities have been waived or cured within such time as the Debtors determine in good faith. 

  
 8 

 Before exercising any Subscription Rights, Eligible Holders should read the
Disclosure Statement and the Plan for information relating to the Debtors and the risk factors to be considered. 
  

	 	10.	 Backstop Commitment 

Pursuant to the terms and conditions of the Investment Agreement, the Debt Commitment Parties have agreed to purchase any Debt
Rights Offering Securities not subscribed for by the other Eligible Holders. 
  

	 	11.	 Modification of Procedures 

With the prior written consent of the Required Commitment Parties, such consent not to be unreasonably withheld, the Debtors
reserve the right to modify or adopt additional procedures consistent with these Debt Rights Offering Procedures to effectuate the Debt Rights Offering and to issue the Debt Rights Offering Securities, provided, however, that the Debtors shall
provide prompt written notice to each Eligible Holder of any modification to these Debt Rights Offering Procedures made after the Subscription Commencement Date that has a material negative effect on such Eligible Holder. In so doing, and subject to
the consent of the Required Commitment Parties, the Debtors may execute and enter into agreements and take further action that the Debtors determine in good faith are necessary and appropriate to effectuate and implement the Debt Rights Offering and
the issuance of the Debt Rights Offering Securities. Nothing in this paragraph shall be construed so as to permit the Debtors to modify the terms of any executed and delivered Subscription Agreement without the consent of the Eligible Holder party
thereto. 
 The Debtors shall undertake reasonable procedures to confirm that each participant in the Rights Offering is in
fact an Eligible Holder, including but not limited to, requiring such participant to validly and timely complete an Eligibility Certificate, requiring additional certifications by such participant to that effect and other diligence measures as the
Debtors deem reasonably necessary. 
  

	 	12.	 Inquiries And Transmittal of Documents; Subscription Agent 

The Rights Offering Instructions for Eligible Holders of Applicable Claims attached hereto should be carefully read and
strictly followed by the Eligible Holders of Applicable Claims. 
 Questions relating to the Debt Rights Offering should be
directed to the Subscription Agent at the following phone number: [•]. 
 The risk of non-delivery of all documents and
payments to the Subscription Agent and any Nominee is on the Eligible Holder electing to exercise its Subscription Rights and not the Debtors, the Subscription Agent, or Commitment Parties. 

  
 9 

 SEADRILL LIMITED 

DEBT RIGHTS OFFERING INSTRUCTIONS FOR ELIGIBLE HOLDERS 

Terms used and not defined herein or in the Subscription Agreement shall have the meaning assigned to them in the Plan. 

To elect to participate in the Rights Offering, you must follow the instructions set out below: 

 

	1.	 Insert the principal amount of the Applicable Claims that you held as of the Record Date in
Item 1 of your Subscription Form (if your Nominee holds your Applicable Claims on your behalf and you do not know such amount, please contact your Nominee immediately). 

 

	2.	 Confirm whether you are a Debt Commitment Party pursuant to the representation in Item 3 of
your Subscription Form. (This section is only for Debt Commitment Parties, each of whom is aware of their status as a Debt Commitment Party). 

  

	3.	 Complete the calculation in Item 2a of your Subscription Form, which calculates the maximum
amount of Debt Rights Offering Securities available for you to purchase. Such amount must be rounded down to the nearest whole share or $1,000 increment as applicable. 

 

	4.	 Complete the calculation in Item 2b of your Subscription Form to indicate the amount of
Debt Rights Offering Securities that you elect to purchase and calculate the Purchase Price for the Debt Rights Offering Securities that you elect to purchase. 

 

	5.	 Read and complete the certification in Item 2c of your Subscription Form certifying that
you are an Eligible Holder. 

  

	6.	 Read, complete and sign the certification in Item 5 of your Subscription Form.

  

	7.	 Read and countersign the Subscription Agreement with respect to Applicable Claims. Such
execution shall indicate your acceptance and approval of the terms and conditions set forth therein. 

  

	8.	 Read, complete and sign an IRS Form W-9 if you are a U.S. person. If you are a non-U.S. person,
read, complete and sign an appropriate IRS Form W-8. These forms may be obtained from the IRS at its website: www.irs.gov. 

  

	9.	 Return your signed Subscription Agreement and Subscription Form(s) (with accompanying IRS Form
W-9 or appropriate IRS Form W-8, as applicable) and Subscription Agreement to the Subscription Agent prior to the Subscription Expiration Deadline or to your Nominee in sufficient time to allow your Nominee to process your instructions and prepare
and deliver the Master Subscription Form to the Subscription Agent by the Subscription Expiration Deadline. A registered holder of Applicable Claims hold on behalf of beneficial owners should follow the delivery instructions as provided in the
Master Subscription Form. 

	10.	 Arrange for full payment of the aggregate Purchase Price by wire transfer of immediately
available funds, calculated in accordance with Item 2b of your Subscription Form. For Eligible Holders that are not Debt Commitment Parties that hold Applicable Claims via a Nominee, please instruct your Nominee to coordinate payment of the
Purchase Price and transmit and deliver such payment to the Subscription Agent by the Subscription Expiration Deadline. A registered holder of Applicable Claims that is not a Debt Commitment Party should follow the payment instructions as provided
in the Master Subscription Form. A registered holder of Applicable Claims that is a Debt Commitment Party should follow the payment instructions in the Funding Notice. 

The Subscription Expiration Deadline is 5:00 p.m. New York City Time on [•], 2017. 

Please note that the Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and the Subscription
Agreement must be received by your Nominee (e.g. broker, bank, commercial bank, transfer agent, trust company, dealer, or other agent or other nominee) in sufficient time to allow such Nominee to process and deliver the Master Subscription Form to
the Subscription Agent by the Subscription Expiration Deadline, along with the appropriate funding (with respect to Eligible Holders that are not Debt Commitment Parties) or the subscription represented by your Subscription Form will not be counted
and you will be deemed forever to have relinquished and waived your right to participate in the Debt Rights Offering. Registered holders of Applicable Claims that are not Debt Commitment Parties should follow the delivery and payment instructions
provided in the Master Subscription Form. Registered holders of Applicable Claims that are Debt Commitment Parties should follow the payment instructions in the Funding Notice. 

Eligible Holders that are Debt Commitment Parties must deliver the appropriate funding directly to the Subscription Agent no later than the
Backstop Funding Deadline. 

 EXHIBIT A 

Form of Rights Offering Procedures 

SEADRILL LIMITED 

CREDITOR EQUITY RIGHTS OFFERING PROCEDURES 

The New Seadrill Common Stock (collectively, the “Creditor Equity Rights Offering Securities”) are distributed and issued
(the “Creditor Equity Rights Offering”) without registration under the Securities Act of 1933, as amended (the “Securities Act”), in reliance upon the exemption from registration provided by Section 4(a)(2)
thereof, Regulation D and/or Regulation S. 
 None of the Subscription Rights (defined below) or Creditor Equity Rights Offering
Securities issuable upon exercise of such rights distributed pursuant to these Creditor Equity Rights Offering Procedures have been or, at the time of original issuance, will be registered under the Securities Act, or the securities laws of any
state. 
 No Subscription Rights may be sold, transferred, assigned, pledged, hypothecated, participated, donated or otherwise
encumbered or disposed of, directly or indirectly (including through derivatives, options, swaps, forward sales or other transactions in which any person receives the right to own or acquire any current or future interest in the Subscription Rights,
the Creditor Equity Rights Offering Securities, the Applicable Claims (defined below) and any related claims) (each of the above, a “Transfer”) ; provided, however, that holding securities attesting ownership of Subscription Rights
in an account with a broker-dealer where the broker-dealer holds a security interest or other encumbrance over property in the account generally, which security interest or other encumbrance is released upon transfer of such securities, shall not
constitute a “Transfer” for purposes hereof. 
 No Creditor Equity Rights Offering Securities may be sold or transferred
except pursuant to an exemption from registration under the Securities Act or the securities laws of any state. 
 These Creditor
Equity Rights Offering Procedures are being distributed and communicated only to Eligible Holders (defined below). The Creditor Equity Rights Offering Securities are available only to, and any invitation, offer or agreement to purchase will be
entered into only with Eligible Holders. Any person who is not a Eligible Holder should not act or rely on this document or any of its contents. 

The distribution or communication of these Creditor Equity Rights Offering Procedures and the issue of the Creditor Equity Rights Offering
Securities in certain jurisdictions may be restricted by law. No action has been taken or will be taken to permit the distribution or communication of these Creditor Equity Rights Offering Procedures in any jurisdiction where any action for that
purpose may be required. Accordingly, these Creditor Equity Rights Offering Procedures may not be distributed or communicated, and the Creditor Equity Rights Offering Securities may not be 

 
subscribed, purchased or issued, in any jurisdiction except in circumstances where such distribution, communication, subscription, purchase or issue would comply with all applicable laws and
regulations without the need for the issuer to take any action or obtain any consent, approval or authorization therefor except for any notice filings required under U.S. federal and applicable state securities laws. 

Each Rights Offering Security issued upon exercise of a Subscription Right, and each certificate issued in exchange for or upon the
transfer, sale or assignment of any such Creditor Equity Rights Offering Securities, shall be stamped or otherwise imprinted with a legend in substantially the following form: 

[“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION AND, ACCORDINGLY, NEITHER THE SHARES NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE OFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF WITHIN THE UNITED STATES WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER ON ITS OWN BEHALF AND BEHALF OF
ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SHARES (1) REPRESENTS THAT (A) IT IS AN “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501 UNDER THE SECURITIES ACT) OR (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THE SHARES IN AN
OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT, (2) AGREES THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THE SHARES EXCEPT (A) TO THE ISSUER OR ANY SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE
SHARES ARE ELIGIBLE FOR RESALE PURSUANT TO 144A UNDER THE SECURITIES ACT, INSIDE THE UNITED STATES TO A PERSON IT REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) OUTSIDE THE
UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, (D) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (BASED UPON AN OPINION
OF COUNSEL IF THE ISSUER SO REASONABLY REQUESTS), OR (E) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY
OTHER APPLICABLE JURISDICTION AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THESE SHARES ARE TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED
STATES” AND “U.S. PERSON” HAVE THE MEANING AS DEFINED BY REGULATION S UNDER THE SECURITIES ACT.”] 

  
 ii 

 [In the case of Creditor Equity Rights Offering Securities sold pursuant to Regulation S, each
certificate shall additionally be stamped or otherwise imprinted with a legend in substantially the following form: 
 “THESE
SECURITIES WERE ISSUED IN AN OFFSHORE TRANSACTION TO PERSONS WHO ARE NOT, OR NOT FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS PURSUANT TO REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). ACCORDINGLY,
NONE OF THE SECURITIES TO WHICH THIS CERTIFICATE RELATES HAVE BEEN REGISTERED UNDER THE SECURITIES ACT, OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION AND, UNLESS SO REGISTERED, THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED WITHIN IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND, IN EACH CASE, IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANING AS DEFINED
BY REGULATION S UNDER THE 1933 ACT.”] 
 [Additional Jurisdiction Legends to Come if Applicable] 

In any member state of the European Economic Area (the “EEA”) that has implemented the EU Prospectus Directive (each, a
“Relevant Member State”), these Creditor Equity Rights Offering Procedures are only addressed to and only directed at qualified investors in that Relevant Member State within the meaning of the EU Prospectus Directive. These Creditor
Equity Rights Offering Procedures have been prepared on the basis that all offers of Creditor Equity Rights Offering Securities within the EEA will be made pursuant to an exemption under the EU Prospectus Directive from the requirement to produce a
prospectus for offer of securities. Accordingly, any person making or intending to make any subscription of Creditor Equity Rights Offering Securities within any EEA member state should only do so in circumstances in which no obligation arises to
publish a prospectus or a supplement to a prospectus under the EU Prospectus Directive for such offer. Neither Seadrill Limited nor any person acting on their behalf has authorized, nor do they authorize, the making of any offer of Creditor Equity
Rights Offering Securities through any financial intermediary, other than as may be contemplated herein. The expression “EU Prospectus Directive” means Directive 2003/71/EC (and amendments thereto, including the 2010 PD Amending Directive,
to the extent implemented in the Relevant Member State), and includes any relevant implementing measure in each Relevant Member State and the expression “2010 PD Amending Directive” means Directive 2010/73/EU. 

  
 iii 

 The Creditor Equity Rights Offering is being conducted in good faith and in compliance with
the Bankruptcy Code. In accordance with Section 1125(e) of the Bankruptcy Code, a debtor or any of its agents that participate, in good faith and in compliance with the applicable provisions of the Bankruptcy Code, in the offer, issuance, sale,
or purchase of a security offered or sold under the plan of the debtor, of an affiliate participating in a joint plan with the debtor, or of a newly organized successor to the debtor under the plan, is not liable, on account of such participation,
for violation of any applicable law, rule, or regulation governing the offer, issuance, sale or purchase of securities. 

  
 iv 

 Pursuant to the Plan, if Class B3, D3 or F3, constituting the General Unsecured Claims against
Seadrill, NADL, and Sevan, vote as a class to accept the Plan, the Subscription Agent will transmit to Holders of claims of each class that voted to accept the Plan (the “Applicable Claims”) as of the Record Date a certification
form (an “Eligibility Certificate”) to determine if such Holder is an Eligible Holder (defined below) permitted to participate in the Creditor Equity Rights Offering. 

An “Eligible Holders” is a Holder of an Applicable Claim as of the Record Date that is: 

 

	 	(1)	 an “Accredited Investor” (as defined by Rule 501 of Regulation D promulgated under the Securities
Act) and, if that person is in a Member State of the EEA that has implemented the EU Prospectus Directive, is a “qualified investor” in that Relevant Member State within the meaning of the EU Prospectus Directive; or 

 

	 	(2)	 is a “Qualified Investor” (defined below) that is not a “U.S. Person” (as defined by Rule
902 of Regulation S promulgated under the Securities Act). 

 The term “Qualified Investor” means: 

 

	 	(1)	 a non-U.S. Person in a Member State of the EEA, that is a “qualified investor” in that Relevant
Member State within the meaning of the EU Prospectus Directive; or 

  

	 	(2)	 a non-U.S. Person not in a Member State of the EEA, that is lawfully entitled subscribe and purchase the
Creditor Equity Rights Offering Securities under all applicable securities laws and regulations (whether pursuant to an applicable exemption or otherwise), without the need for any registration, the filing or publication of any prospectus or other
action by the issuer. 

 Each Eligible Holder, seeking to participate in the Creditor Equity Rights Offering is required
to return the applicable Eligibility Certificate to the Subscription Agent so as to be actually received by the Subscription Agent by the Eligibility Certificate Deadline ([•], 2017 at 5:00 p.m. New York City time) and is required to certify
therein to the ownership of an Applicable Claim and status as an Eligible Holder. 
 Only those Holders of Applicable Claims that certify
that they are Eligible Holders will have the opportunity to participate in the Creditor Equity Rights Offering. Holders of Applicable Claims that do not return the applicable Eligibility Certificate will be deemed to relinquish and waive any right
to participate in the Creditor Equity Rights Offering. 
 Pursuant to the Plan (and in accordance with and subject to the terms and
conditions of these Creditor Rights Offering Procedures, the Subscription Form and the Subscription Agreement), if Class B3, D3 or F3, constituting the General Unsecured Claims against Seadrill, NADL, and Sevan, vote as a class to accept the Plan,
each Eligible Holder of an Applicable Claim will receive subscription rights to subscribe for its pro rata share of Creditor Equity Rights Offering Securities (the “Subscription Rights”), provided that the Debt Commitment Parties
have agreed not to receive Subscription Rights on account of their Applicable Claims against Seadrill, NADL, and Sevan held as of the Agreement Effective Date (as defined in the Restructuring 

  
 1 

 
Support and Lock-Up Agreement). Holders of claims in a class enumerated above that does not vote as a class to approve the Plan will not receive Subscription Rights in respect of claims in such
class. For the avoidance of doubt, Debt Commitment Parties shall receive Subscription Rights for Applicable Claims acquired by such Debt Commitment Parties after the Agreement Effective Date (as defined in the Restructuring Support and Lock-Up
Agreement). 
 Eligible Holders (as defined below) should note the following times relating to the Rights Offering: 

 

					
	 Date
	  	 Calendar Date
	  	 Event

	 Record Date
	  	 [•], 2017
	  	 The date and time fixed for the

determination of the holders entitled to

participate in the Creditor Equity Rights Offering.

			
	 Subscription Commencement Date
	  	 [•], 2017
	  	 Commencement of the Creditor Equity Rights Offering.

			
	 Subscription Expiration Deadline
	  	 5:00 p.m. New York City time on [•], 2017
	  	 The deadline for Eligible Holders of Applicable Claims to subscribe for Creditor Equity Rights Offering Securities. The
Eligible Holder’s Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and Subscription Agreement must be received by the Subscription Agent by the Subscription Expiration Deadline.

 
 Eligible Holders who hold Applicable Claims through a broker,
bank, commercial bank, transfer agent, trust company, dealer, or other agent or nominee (as applicable, the “Nominee”) must provide their Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and
Subscription Agreement to allow sufficient time to allow such Nominee to process and deliver the Master Subscription Form to the Subscription Agent by the Subscription Expiration
Deadline.

  
 2 

					
		  		  	 Eligible Holders of Applicable Claims who are not Debt Commitment Parties (as defined in the Investment Agreement) must
deliver the aggregate Purchase Payment by the Subscription Expiration Deadline.
  

Eligible Holders who are Debt Commitment Parties must deliver the aggregate Purchase Price within the third Business Day following receipt of a
Funding Notice (as defined below) in accordance with the terms of the Investment Agreement.

 Terms used and not defined herein shall have the meaning assigned to them in the Plan (as defined below) or
Investment Agreement (as defined in the Plan) as applicable. 

  
 3 

 To Eligible Holders and Nominees of Eligible Holders: 

On [•], 2017, the Debtors filed their Chapter 11 Plan of Reorganization with the United States Bankruptcy Court for the
[•] (as such plan of reorganization may be amended or modified from time to time in accordance with its terms, the “Plan”), and the disclosure statement with respect to the Plan (as such disclosure statement may be amended from
time to time in accordance with its terms, the “Disclosure Statement”). Pursuant to the Plan, each Holder of an Applicable Claim as of the Record Date that is an Eligible Holder and that has timely and validly completed and returned
Eligibility Certificate has the right to participate in the Creditor Equity Rights Offering in accordance with the terms and conditions of the Subscription Agreement and these Creditor Equity Rights Offering Procedures. 

Only Eligible Holders that provide an Eligibility Certificate and complete the Eligibility Questionnaire included as part
of the Subscription Form may participate in the Creditor Equity Rights Offering. 
 Pursuant to the Plan, if Class B3,
D3 or F3, constituting the General Unsecured Claims against Seadrill, NADL, and Sevan, vote as a class to accept the Plan, each Eligible Holder of an Applicable Claim (other than a Debt Commitment Party on account of their Applicable Claims against
Seadrill, NADL, and Sevan held as of the Agreement Effective Date) will receive Subscription Rights to subscribe for its pro rata share of Creditor Equity Rights Offering Securities, provided that it timely and properly executes and delivers its
applicable Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and Subscription Agreement to the Subscription Agent or its Nominee, as applicable, in advance of the Subscription Expiration Deadline. Each
Nominee will receive a Master Subscription Form which it shall use to summarize the Subscription Rights exercised by each Eligible Holder of Applicable Claims that timely returns the applicable properly filled out Subscription Form (with
accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and Subscription Agreement to such Nominee. Please note that all Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and Subscription
Agreement must be returned to the applicable Nominee in sufficient time to allow such Nominee to process and deliver the Master Subscription Form and copies of all Subscription Forms (and the accompanying Subscription Agreements and IRS Forms) prior
to the Subscription Expiration Deadline. 
 No Eligible Holder shall be entitled to participate in the Creditor Equity
Rights Offering unless the aggregate Purchase Price (as defined below) for the Creditor Equity Rights Offering Securities it subscribes for is received by the Subscription Agent (i) in the case of an Eligible Holder of an Applicable Claim that
is not a Debt Commitment Party by the Subscription Expiration Deadline, and (ii) in the case of an Eligible Holder of an Applicable Claim that is a Debt Commitment Party, on the third Business Day following receipt of a written notice (a
“Funding Notice”) delivered by [•] to the Debt Commitment Parties in accordance with Section 2.4 of the Investment Agreement (the “Backstop Funding Deadline”). No interest is payable on any advanced
funding of the Purchase Price except in the case of the Commitment Parties, in which case interest will be calculated and paid under the terms of the Escrow 

  
 4 

 
Agreement. If the Creditor Equity Rights Offering is terminated for any reason, your Purchase Price will be returned to you promptly. Debt Commitment Parties may deposit their Purchase Price in
the Escrow Account (as defined below). No interest will be paid on any returned Purchase Price. Any Eligible Holder of an Applicable Claim submitting payment via its Nominee must coordinate such payment with its Nominee in sufficient time to allow
the Nominee to forward such payment to the Subscription Agent by the Subscription Expiration Deadline or the Backstop Funding Deadline, as applicable. 

In order to participate in the Creditor Equity Rights Offering, you must complete all the steps outlined below by the
Subscription Expiration Deadline, or the Backstop Funding Deadline, as applicable. If you fail to do so, you shall be deemed to have forever and irrevocably relinquished and waived your right to participate in the Creditor Equity Rights Offering.

  

	 	1.	 Rights Offering 

If Class B3, D3 or F3, constituting the General Unsecured Claims against Seadrill, NADL, and Sevan, vote as a class to accept
the Plan, each Eligible Holder of an Applicable Claim (other than a Debt Commitment Party on account of their Applicable Claims against Seadrill, NADL, and Sevan held as of the Agreement Effective Date) will have the right, but not the obligation,
to participate in the Creditor Equity Rights Offering. Only Holders of an Applicable Claim as of the Record Date that validly and timely completed the Eligibility Certificate and the Eligibility Questionnaire included as part of the Subscription
Form and that are Eligible Holders may participate in the Creditor Equity Rights Offering. 
 Subject to the terms and
conditions set forth in the Plan, these Creditor Equity Rights Offering Procedures, the Subscription Form and the Subscription Agreement, each Eligible Holder is entitled to subscribe for [•] share of Common Stock per $[•] amount of
Applicable Claim at a purchase price of $[•] per share (the “Purchase Price”). 
 SUBJECT TO THE
TERMS AND CONDITIONS OF THE SUBSCRIPTION AGREEMENT AND THE INVESTMENT AGREEMENT IN THE CASE OF ANY DEBT COMMITMENT PARTY, ALL SUBSCRIPTIONS SET FORTH IN THE SUBSCRIPTION AGREEMENT ARE IRREVOCABLE. 

 

	 	2.	 Subscription Period 

The Creditor Equity Rights Offering will commence on the Subscription Commencement Date and will expire at the Subscription
Expiration Deadline. Each Eligible Holder intending to purchase Creditor Equity Rights Offering Securities in the Creditor Equity Rights Offering must affirmatively elect to exercise its Subscription Rights in the manner set forth in the
Subscription Form and Subscription Agreement by the Subscription Expiration Deadline. 
 Any exercise of Subscription Rights
after the Subscription Expiration Deadline will not be allowed and any purported exercise received by the Subscription Agent after the Subscription Expiration Deadline, regardless of when the documents or payment relating to such exercise were sent,
will not be honored. 

  
 5 

 The Debtors may extend the Subscription Expiration Deadline with the consent of
the Required Commitment Parties (as defined in the Investment Agreement), such consent not to be unreasonably withheld, or as required by law. 
  

	 	3.	 Delivery of Subscription Agreement 

Subject to the terms and conditions of the Subscription Agreement, each Eligible Holder may exercise all or any portion of such
Eligible Holder’s Subscription Rights. In order to facilitate the exercise of the Subscription Rights, beginning on the Subscription Commencement Date, the Subscription Agent will send these Creditor Equity Rights Offering Procedures,
Subscription Form and Subscription Agreement to each Eligible Holder or its Nominee, as applicable, together with appropriate instructions for the proper completion, due execution and timely delivery of the executed Subscription Form and
Subscription Agreement and the payment of the applicable Purchase Price for its Creditor Equity Rights Offering Securities. 
  

	 	4.	 Exercise of Subscription Rights 

(a) In order to validly exercise its Subscription Rights, each Eligible Holder that is not a Debt Commitment Party must: 

 

	 	i.	 return a duly executed Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as
applicable) and Subscription Agreement to the Subscription Agent or its Nominee, as applicable, so that such documents are actually received by the Subscription Agent by the Subscription Expiration Deadline; and 

 

	 	ii.	 at the same time it returns its Subscription Agreement and Subscription Form to the Subscription Agent or its
Nominee, as applicable, but in no event later than the Subscription Expiration Deadline, pay, or arrange for the payment by its Nominee of, the applicable Purchase Price to the Subscription Agent by wire transfer ONLY of immediately available
funds in accordance with the instructions included in the Subscription Form. 

 (b) In order to validly
exercise its Subscription Rights, each Eligible Holder that is a Debt Commitment Party must: 
  

	 	i.	 return a duly executed Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as
applicable) and Subscription Agreement to the Subscription Agent or its Nominee, as applicable, so that such documents are actually received by the Subscription Agent by the Subscription Expiration Deadline; and 

 

	 	ii.	 no later than the Backstop Funding Deadline, pay the applicable Purchase Price to the Creditor Equity
Securities Escrow Account established by the Subscription Agent pursuant to the Escrow Agreement by wire transfer ONLY of immediately available funds in accordance with the instructions included in the Subscription Form.

  
 6 

 ALL DEBT COMMITMENT PARTIES MUST PAY THEIR APPLICABLE PURCHASE PRICE DIRECTLY
TO THE CREDITOR EQUITY SECURITIES ESCROW ACCOUNT AND SHOULD NOT PAY THEIR NOMINEES, IF ANY. 
 For those Eligible
Holders that hold Applicable Claims through a Nominee (e.g. bank, broker, custodian, etc.), you must duly complete, execute and return your Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and
Subscription Agreement in accordance with the instructions herein to your Nominee in sufficient time to allow your Nominee to process your instructions and deliver to the Subscription Agent the Master Subscription Form, your completed
Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and Subscription Agreement and, solely with respect to the Eligible Holders that are not Debt Commitment Parties, payment of the applicable Purchase Price,
payable for the Creditor Equity Rights Offering Securities elected to be purchased by such Eligible Holder, by the Subscription Expiration Deadline. 

Any Eligible Holder that does not hold an Applicable Claims through a Nominee must deliver their completed Subscription
Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and Subscription Agreement and, solely with respect to the Eligible Holders that are not Debt Commitment Parties, payment of the applicable Purchase Price payable for
the Creditor Equity Rights Offering Securities elected to be purchased by such Eligible Holder directly to the Subscription Agent on or before the Subscription Expiration Deadline. In all cases, Eligible Holders that are Debt Commitment Parties must
deliver their payment of the applicable Purchase Price payable for the Creditor Equity Rights Offering Securities elected to be purchased by such Eligible Holder directly to the Subscription Agent no later than the Backstop Funding Deadline. 

In the event that the funds received by the Subscription Agent from any Eligible Holder do not correspond to the Purchase
Price payable for the Creditor Equity Rights Offering Securities elected to be purchased by such Eligible Holder, the number of the Creditor Equity Rights Offering Securities deemed to be purchased by such Eligible Holder will be the lesser of
(i) the amount of the Creditor Equity Rights Offering Securities elected to be purchased by such Eligible Holder and (ii) an amount of the Creditor Equity Rights Offering Securities determined by dividing the amount of the funds received
by the Purchase Price. 
 The cash paid to the Subscription Agent in accordance with these Creditor Equity Rights Offering
Procedures will be deposited and held by the Subscription Agent in a segregated escrow account designed in escrow agreements mutually satisfactory to each of the Debt Commitment Parties and the Debtors until administered in connection with the
settlement of the Creditor Equity Rights Offering on the Effective Date. The Subscription Agent may not use such cash for any other purpose prior to the Effective Date and may not encumber or permit such cash to be encumbered with any lien or
similar encumbrance. The cash held by the Subscription Agent hereunder shall not be deemed part of the Debtors’ bankruptcy estates. 

  
 7 

	 	5.	 Transfer Restriction; Revocation 

The Subscription Rights may not be Transferred after the Record Date. Any attempted Transfer of Subscription Rights by an
Eligible Holder will be cancelled, and neither such Eligible Holder nor the purported transferee will receive any Creditor Equity Rights Offering Securities otherwise purchasable on account of such Transferred Subscription Rights. Any Applicable
Claim (or interest therein) Transferred after the Record Date will not be traded with the Subscription Rights attached. 

Once an Eligible Holder has properly exercised its Subscription Rights, subject to the terms and conditions of the applicable
Subscription Agreement and the Investment Agreement (in the case of any Debt Commitment Party) such exercise will be irrevocable. 
  

	 	6.	 Return of Payment 

If the Creditor Equity Rights Offering is not consummated, any cash paid to the Subscription Agent will be returned, without
interest except in the case of a Debt Commitment Party, to the applicable Eligible Holder as soon as reasonably practicable, but in any event within five Business Days, after the date on which the Creditor Equity Rights Offering is terminated. 

 

	 	7.	 Settlement of the Rights Offering and Distribution of the Creditor Equity Rights Offering Securities

 The Debtors intend that the Creditor Equity Rights Offering Securities will be issued to the
Eligible Holders, and/or to any Affiliates (as defined in the Subscription Agreement) that the Eligible Holders so designate in the Subscription Form, in book-entry form, and that DTC, or its nominee, will be the holder of record of such Creditor
Equity Rights Offering Securities. To the extent DTC is unwilling or unable to make the Creditor Equity Rights Offering Securities eligible on the DTC system, the Creditor Equity Rights Offering Securities will be issued directly to the Eligible
Holder or its designee and such Eligible Holder or its designee will be the holder of record. 
  

	 	8.	 Minimum Denominations; No Fractional Shares 

All allocations (including each Eligible Holder’s Creditor Equity Rights Offering Securities) will be calculated and
rounded down to the nearest whole share. 
  

	 	9.	 Validity of Exercise of Subscription Rights 

All questions concerning the timeliness, viability, form and eligibility of any exercise of Subscription Rights will be
determined in good faith by the Debtors and, if necessary, subject to a final and binding determination by the Bankruptcy Court. The Debtors may waive any defect or irregularity in, or permit such defect or irregularity to be corrected within such
time as they may determine in good faith, or reject, the purported exercise of any Subscription Rights. Subscription Agreements will be deemed not to have been received or accepted until all irregularities have been waived or cured within such time
as the Debtors determine in good faith. 

  
 8 

 Before exercising any Subscription Rights, Eligible Holders should read the
Disclosure Statement and the Plan for information relating to the Debtors and the risk factors to be considered. 
  

	 	10.	 Backstop Commitment 

Pursuant to the terms and conditions of the Investment Agreement, Hemen Investments Limited has agreed to purchase any Creditor
Equity Rights Offering Securities not subscribed for by the other Eligible Holders. 
  

	 	11.	 Modification of Procedures 

With the prior written consent of the Required Commitment Parties, such consent not to be unreasonably withheld, the Debtors
reserve the right to modify or adopt additional procedures consistent with these Creditor Equity Rights Offering Procedures to effectuate the Creditor Equity Rights Offering and to issue the Creditor Equity Rights Offering Securities, provided,
however, that the Debtors shall provide prompt written notice to each Eligible Holder of any modification to these Creditor Equity Rights Offering Procedures made after the Subscription Commencement Date that has a material negative effect on such
Eligible Holder. In so doing, and subject to the consent of the Required Commitment Parties, the Debtors may execute and enter into agreements and take further action that the Debtors determine in good faith are necessary and appropriate to
effectuate and implement the Creditor Equity Rights Offering and the issuance of the Creditor Equity Rights Offering Securities. Nothing in this paragraph shall be construed so as to permit the Debtors to modify the terms of any executed and
delivered Subscription Agreement without the consent of the Eligible Holder party thereto. 
 The Debtors shall undertake
reasonable procedures to confirm that each participant in the Rights Offering is in fact an Eligible Holder, including but not limited to, requiring such participant to validly and timely complete an Eligibility Certificate, requiring additional
certifications by such participant to that effect and other diligence measures as the Debtors deem reasonably necessary. 
  

	 	12.	 Inquiries And Transmittal of Documents; Subscription Agent 

The Rights Offering Instructions for Eligible Holders of Applicable Claims attached hereto should be carefully read and
strictly followed by the Eligible Holders of Applicable Claims. 
 Questions relating to the Creditor Equity Rights Offering
should be directed to the Subscription Agent at the following phone number: [•]. 
 The risk of non-delivery of all
documents and payments to the Subscription Agent and any Nominee is on the Eligible Holder electing to exercise its Subscription Rights and not the Debtors, the Subscription Agent, or Commitment Parties. 

  
 9 

 SEADRILL LIMITED 

CREDITOR EQUITY RIGHTS OFFERING INSTRUCTIONS FOR ELIGIBLE HOLDERS 

Terms used and not defined herein or in the Subscription Agreement shall have the meaning assigned to them in the Plan. 

To elect to participate in the Rights Offering, you must follow the instructions set out below: 

 

	1.	 Insert the principal amount of the Applicable Claims that you held as of the Record Date in
Item 1 of your Subscription Form (if your Nominee holds your Applicable Claims on your behalf and you do not know such amount, please contact your Nominee immediately). 

 

	2.	 Confirm whether you are a Debt Commitment Party pursuant to the representation in Item 3 of
your Subscription Form. (This section is only for Debt Commitment Parties, each of whom is aware of their status as a Debt Commitment Party). 

  

	3.	 Complete the calculation in Item 2a of your Subscription Form, which calculates the maximum
amount of Creditor Equity Rights Offering Securities available for you to purchase. Such amount must be rounded down to the nearest whole share. 

  

	4.	 Complete the calculation in Item 2b of your Subscription Form to indicate the amount of
Creditor Equity Rights Offering Securities that you elect to purchase and calculate the Purchase Price for the Creditor Equity Rights Offering Securities that you elect to purchase. 

 

	5.	 Read and complete the certification in Item 2c of your Subscription Form certifying that
you are an Eligible Holder. 

  

	6.	 Read, complete and sign the certification in Item 5 of your Subscription Form.

  

	7.	 Read and countersign the Subscription Agreement with respect to Applicable Claims. Such
execution shall indicate your acceptance and approval of the terms and conditions set forth therein. 

  

	8.	 Read, complete and sign an IRS Form W-9 if you are a U.S. person. If you are a non-U.S. person,
read, complete and sign an appropriate IRS Form W-8. These forms may be obtained from the IRS at its website: www.irs.gov. 

  

	9.	 Return your signed Subscription Agreement and Subscription Form(s) (with accompanying IRS Form
W-9 or appropriate IRS Form W-8, as applicable) and Subscription Agreement to the Subscription Agent prior to the Subscription Expiration Deadline or to your Nominee in sufficient time to allow your Nominee to process your

	 	 
instructions and prepare and deliver the Master Subscription Form to the Subscription Agent by the Subscription Expiration Deadline. A registered holder of Applicable Claims hold on behalf of
beneficial owners should follow the delivery instructions as provided in the Master Subscription Form. 

  

	10.	 Arrange for full payment of the aggregate Purchase Price by wire transfer of immediately
available funds, calculated in accordance with Item 2b of your Subscription Form. For Eligible Holders that are not Debt Commitment Parties that hold Applicable Claims via a Nominee, please instruct your Nominee to coordinate payment of the
Purchase Price and transmit and deliver such payment to the Subscription Agent by the Subscription Expiration Deadline. A registered holder of Applicable Claims that is not a Debt Commitment Party should follow the payment instructions as provided
in the Master Subscription Form. A registered holder of Applicable Claims that is a Debt Commitment Party should follow the payment instructions in the Funding Notice. 

The Subscription Expiration Deadline is 5:00 p.m. New York City Time on [•], 2017. 

Please note that the Subscription Form (with accompanying IRS Form W-9 or appropriate IRS Form W-8, as applicable) and the Subscription
Agreement must be received by your Nominee (e.g. broker, bank, commercial bank, transfer agent, trust company, dealer, or other agent or other nominee) in sufficient time to allow such Nominee to process and deliver the Master Subscription Form to
the Subscription Agent by the Subscription Expiration Deadline, along with the appropriate funding (with respect to Eligible Holders that are not Debt Commitment Parties) or the subscription represented by your Subscription Form will not be counted
and you will be deemed forever to have relinquished and waived your right to participate in the Creditor Equity Rights Offering. Registered holders of Applicable Claims that are not Debt Commitment Parties should follow the delivery and payment
instructions provided in the Master Subscription Form. Registered holders of Applicable Claims that are Debt Commitment Parties should follow the payment instructions in the Funding Notice. 

Eligible Holders that are Debt Commitment Parties must deliver the appropriate funding directly to the Subscription Agent no later than the
Backstop Funding Deadline. 

 EXHIBIT B 

Board Governance Term Sheet 

SEADRILL LIMITED 

Governance Term Sheet1 

This indicative summary of terms and conditions (this “Governance Term Sheet”) is for discussion
purposes only. This Governance Term Sheet does not constitute an agreement or an offer to enter into an agreement to purchase equity securities or the rights associated with such equity securities described herein or otherwise. Such an agreement
will arise only under definitive documentation duly executed by the parties in accordance with its terms and is further subject to, among other things, the final order of the Bankruptcy Court confirming the Plan and the effectiveness of the Plan.
This Governance Term Sheet does not attempt to describe all of the terms, conditions and requirements that would pertain to the purchase of equity securities or the rights associated with such equity securities described herein, but rather is
intended to outline certain basic items around which the equity investment will be structured. The governance rights and arrangements under this Governance Term Sheet will, to the extent required, be amended to ensure that shares of New Seadrill (as
defined below) can be listed on the Oslo Bors or any other stock exchange contemplated by the Plan or as agreed between relevant stakeholders. This Governance Term Sheet is not intended to limit the scope of discussion or negotiation of any and all
matters whether or not set forth herein and reflects the requirements of the Investors (as defined below) on governance and not the views of the Board of Seadrill Limited. 

 

			
	 Issuer:
	  	 Seadrill Limited, a Bermuda company, or New Seadrill Limited, a Bermuda company (such entity, “New
Seadrill”)

		
	 Investors:
	  	 Hemen Investments Limited, a Cyprus holding company (“Hemen”)

 
 Centerbridge Credit Partners L.P., and certain of its
affiliates (“Centerbridge”)
  

Certain funds and/or accounts that are managed, advised or sub-advised by each of Aristeia Capital L.L.C., GLG Partners LP, Saba Capital
Management LP and Whitebox Advisors, LLC or such Person’s Affiliate(s), in each case, that are signatories to the Investment Agreement (the “Select Commitment Parties”)

 
 Each of Hemen, Centerbridge and each Select Commitment Party
is an “Investor” and together they are the “Investors”)

	
	Corporate Governance Matters
		
	 Board

Representation:
	  	 The board of directors of New Seadrill (the “Board”) will be the main decision making body of New
Seadrill and may delegate specific powers to Board committees and/or management from time to time. The Board will be set at nine (9) directors. For so long as Hemen owns at least [5]% of the issued and outstanding Equity Securities, New Seadrill
will not increase or decrease the size of the Board without the prior written consent of Hemen.
  

For so long as Hemen maintains ownership of at least [10]% of the issued and outstanding Equity Securities of New Seadrill, Hemen will have the
right to:
  

•    designate for election to the Board/appoint three (3) directors (the
“Hemen Designees”), including the Chairman with a casting vote; and

 

	1 	 Capitalized terms used but not defined in this Governance Term Sheet have the meanings given to such terms in
the Investment Agreement. 

  
 B-1 

			
		
		  	  

•    designate for election to the Board/appoint two (2) independent
directors, each of whom shall not be related parties of Hemen or otherwise connected with Hemen and shall qualify as an “independent director” under applicable provisions of the Exchange Act and under applicable NYSE and Oslo Exchange
rules and regulations (the “Independent Nominees”); provided that the other directors on the Board shall be provided with a reasonable opportunity to meet with and consult with such prospective Independent Nominees and
Hemen prior to their nomination.
  
 For so long as Hemen
maintains ownership of at least [5]% but less than [10]% of the issued and outstanding Equity Securities of New Seadrill, Hemen will have the right to:
  

•    designate for election to the Board/appoint two (2) Hemen Designees,
including the Chairman with a casting vote; and
  

•    designate for election to the Board/appoint two (2) Independent
Nominees; provided that the other directors on the Board shall be provided with a reasonable opportunity to meet with and consult with such prospective Independent Nominees and Hemen prior to their nomination.

 

•    The majority of the Hemen Designees and the Independent Nominees (taken
together) including the Chairman shall be persons who are not resident in the United Kingdom.
  

•    Meetings of the Board shall be held outside Norway and the United
Kingdom.
  

•    Where board meetings or committee meetings are held by electronic means,
the majority of the members participating (including the Chairman) shall be physically located outside the United Kingdom. The Board will use all reasonable endeavours to ensure that no such meeting is deemed to be held in Norway.

 

•    The quorum for meetings of the Board shall be a majority in number of
directors who are neither resident nor present in the United Kingdom, provided that at least three independent directors shall be present. If quorum is not formed, the meeting shall be adjourned for [72 hours, provided that in an emergency the
meeting shall be adjourned for 24 hours], and at the adjourned meeting quorum will be formed by the directors present.
  

•    Written resolutions of the Board or any committee of the Board shall
only be permitted if all the directors or committee members (as applicable) are outside the United Kingdom when the resolution is signed. The use of written resolutions shall be kept to a minimum, as far as is practically possible.

 
 For so long as the Hemen Designees are entitled to serve on
the Board, at least one of the Hemen Designees shall be entitled to serve on, and the Board shall appoint such Hemen Designee to, such committee or committees of the Board as

  

			
		  	 shall be determined by Hemen, subject to applicable independence requirements of the NYSE and the Exchange Act and/or the
Oslo Exchange rules, provided that the Board shall not create any new committees and/or increase the size of any committees of the Board currently in existence without the prior written consent of Hemen, not to be unreasonably withheld or
delayed.

		
		  	 For so long as Centerbridge retains at least 50% of its original investment in the Equity Securities of New Seadrill,
Centerbridge shall have the right to designate for election to the Board/appoint as of the Effective Date and at the first election of directors to the Board following the one year anniversary of the Effective Date one (1) independent director (the
“Centerbridge Designee”).
  
 The
Select Commitment Parties, in their capacity as shareholders of New Seadrill, will have the right to designate for election to the Board/appoint as of the Effective Date one (1) independent director.

 
 Hemen, Centerbridge and the Select Commitment Parties on
mutual agreement (with each party’s agreement not to be unreasonably withheld) will have the right to designate for election to the Board/appoint as of the Effective Date two (2) independent directors.

 
 The ability to designate and/or appoint Board members shall
include the ability to remove such Board members. The initial shareholders will provide New Seadrill with a customary indemnity on terms to be agreed in relation to any claims that may arise against New Seadrill as a result of initial shareholders
exercising such a removal right.
  
 From and after the first
election of directors to the Board following the one year anniversary of the Effective Date, all members of the Board, excluding the Hemen Designees, the Independent Nominees and, for the first election of directors to the Board following the one
year anniversary of the Effective Date only, the Centerbridge Designee, shall be elected by shareholders as provided in the New Seadrill bye-laws.
  

The board representation rights set out in this Governance Term Sheet will be reflected in New Seadrill’s bye-laws. There will be no
shareholders agreement.

		
	 Veto/Approval

Right:
	  	 For so long as Hemen owns at least [5]% of the issued and outstanding Equity Securities of New Seadrill, New Seadrill will
not, without the prior written consent of Hemen, amend New Seadrill’s organizational documents in a manner that would modify or impact Hemen’s right to appoint the Hemen Designees, or the voting power of the Hemen Designees, under New
Seadrill’s organizational documents.
  
 The
veto/approval right set out in this Governance Term Sheet will be reflected in New Seadrill’s bye-laws. There will be no shareholders agreement.

		
	 IHCo/RigCo/NSNCo:
	  	 New Seadrill to determine board composition of each of IHCo/RigCo/NSNCo to ensure alignment of interests of the relevant
boards. NSNCo board composition to include customary SPV issuer arrangements.

  

			
		
	 Access to Management and Information Rights:
	  	 Subject to the final paragraph below, New Seadrill shall provide each Investor, at the Investor’s election, with the
same disclosure as is provided to the holders of the New Secured Notes, including quarterly financial statements (at the same time as such statements are provided to the holders of the New Secured Notes) and audited annual financial statements (at
the same time as such statements are provided to the holders of the New Secured Notes), in each case, prepared in accordance with GAAP as in effect from time to time, which statements shall include the consolidated balance sheets of New Seadrill,
its subsidiaries and any New Seadrill joint ventures (that are consolidated) and the related consolidated statements of income, shareholders’ equity and cash flows and a reasonably detailed Management’s Discussion and Analysis of the
Financial Condition and Results of Operations (with a level of detail in line with Seadrill Limited’s existing 20-F practices) that is for the applicable period in which financial statements are being provided.

 
 Subject to the final paragraph below, New Seadrill shall
permit each individual Investor holding at least [10]% of the Equity Securities of New Seadrill and its respective representatives reasonable access to visit and inspect any of the properties of New Seadrill or any of its subsidiaries, including its
and their books of account and other records, and to discuss its and their affairs, finances and accounts with its and their officers, all upon reasonable notice and at such reasonable times and as often as such Investor may reasonably request. Any
investigation pursuant to this provision shall be conducted during normal business hours and in such manner so as not to interfere unreasonably with the conduct of New Seadrill and its subsidiaries.

 
 Subject to the final paragraph below, New Seadrill shall
provide to each individual Investor (or in the case of Hemen, the Hemen Designee to pass onto Hemen) holding at least [10]% of the Equity Securities of New Seadrill, at the Investor’s election, all written information that is provided to the
Board at substantially the same time at which such information is first delivered or otherwise made available to the Board. This right is also subject to ensuring that New Seadrill is satisfied that the relevant Investor is subject to appropriate
confidentiality arrangements, restricted from dealing and without cleansing rights against New Seadrill. Nothing herein shall require New Seadrill or any of its subsidiaries to disclose any information to the extent prohibited by applicable law.

 
 Nothing in this section “Access to Management and
Information Rights” shall oblige Seadrill, New Seadrill or any of their subsidiaries, or any of the directors, officers, employees or agents of any of them to provide or disclose any material non-public price sensitive information or
information which is otherwise confidential to any member of the group.

		
	 Bye-laws and

Organizational

Documents to Control
	  	 The issues of corporate governance reflected in this term sheet shall be implemented consistently with the provisions of
the bye-laws and other organizational documents of New Seadrill, including those provisions relating to tax residence considerations vis-à-vis the U.K., Norway, and any other applicable jurisdiction; provided, that the parties
acknowledge and agree that such bye-laws and other organizational documents shall reflect similar protocols that are in the currently-existing bye-laws and organizational documents of Seadrill Ltd., to be supplemented consistently with advice
received by Seadrill’s professionals in consultation with each of the Investors’ respective professionals, provided, further, that in the event any provision of this term sheet cannot be implemented consistently therewith, the
provisions of the bye-laws and other organizational documents shall control.Exhibit 4.1

 

RIGHTS AGREEMENT 

 

by and between

 

HIGHPOWER INTERNATIONAL, INC. 

 

and

 

CORPORATE STOCK TRANSFER, INC.

as Rights Agent

 

Dated as of September 12, 2017

 

     

     

    

 

TABLE OF CONTENTS 

 

	 	 	Page No.
	 	 	 
	Section 1.	Certain Definitions	4
	 	 	 
	Section 2.	Appointment of the Rights Agent	11
	 	 	 
	Section 3.	Issuance of Rights Certificates	11
	 	 	 
	Section 4.	Form of Rights Certificates	13
	 	 	 
	Section 5.	Countersignature and Registration	14
	 	 	 
	Section 6.	Transfer, Split-Up, Combination, and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates	15
	 	 	 
	Section 7.	Exercise of Rights; Purchase Price; Expiration Date of Rights	16
	 	 	 
	Section 8.	Cancellation and Destruction of Rights Certificates	18
	 	 	 
	Section 9.	Reservation and Availability of Capital Stock	18
	 	 	 
	Section 10.	Preferred Shares Record Date	20
	 	 	 
	Section 11.	Adjustment of Purchase Price, Number and Kind of Shares, or Number of Rights	20
	 	 	 
	Section 12.	Certificate of Adjusted Purchase Price or Number of Shares	27
	 	 	 
	Section 13.	Consolidation, Merger, or Sale or Transfer of Assets, Cash Flow or Earning Power	27
	 	 	 
	Section 14.	Fractional Rights and Fractional Shares	30
	 	 	 
	Section 15.	Rights of Action	32
	 	 	 
	Section 16.	Agreement of Rights Holders	32
	 	 	 
	Section 17.	Rights Certificate Holder Not Deemed a Stockholder	33
	 	 	 
	Section 18.	Concerning the Rights Agent	33
	 	 	 
	Section 19.	Merger or Consolidation or Change of Name of the Rights Agent	34
	 	 	 
	Section 20.	Duties of the Rights Agent	34
	 	 	 
	Section 21.	Change of the Rights Agent	37
	 	 	 
	Section 22.	Issuance of New Rights Certificates	37
	 	 	 
	Section 23.	Redemption and Termination	38
	 	 	 
	Section 24.	Exchange of Rights	39
	 	 	 
	Section 25.	Notice of Certain Events	40
	 	 	 
	Section 26.	Notices	41
	 	 	 
	Section 27.	Supplements and Amendments	42
	 	 	 
	Section 28.	Successors	43
	 	 	 
	Section 29.	Determinations and Actions by the Board	43
	 	 	 
	Section 30.	Benefits of this Agreement	43

 

     

     

    

 

	Section 31.	Severability	43
	 	 	 
	Section 32.	Governing Law	44
	 	 	 
	Section 33.	Counterparts; Facsimiles and PDFs	44
	 	 	 
	Section 34.	Descriptive Headings	44
	 	 	 
	Section 35.	Force Majeure	44
	 	 	 
	Section 36.	Further Assurance	44

 

	Exhibits 
	Exhibit A: 	 	Form of Certificate of Designation of Series A Junior Participating Preferred Stock
	Exhibit B:	 	Form of Rights Certificate
	Exhibit C:	 	Summary of Rights to Purchase Preferred Stock

 

     

     

    

 

RIGHTS AGREEMENT 

 

RIGHTS AGREEMENT, dated as of September 12,
2017 (this “Agreement”), by and between Highpower International, Inc., a Delaware corporation (the “Company”),
and Corporate Stock Transfer, Inc., as rights agent (the “Rights Agent”).

 

RECITALS 

 

WHEREAS, on September 4, 2017 (the “Rights
Dividend Declaration Date”), the Board of Directors of the Company (the “Board”) adopted
this Agreement and authorized and declared a dividend distribution of one preferred share purchase right (each, a “Right”
and collectively, the “Rights”) for each share of Common Stock outstanding at the Close of Business (as
hereinafter defined) on September 21, 2017 (the “Record Date”), each Right initially representing
the right to purchase one one-thousandth of a Preferred Share (as such number may be adjusted pursuant to the provisions of this
Agreement) and having the rights, preferences and privileges set forth in the form of Certificate of Designation of Series A Junior
Participating Preferred Stock attached hereto as Exhibit A, upon the terms and subject to the conditions set forth herein;
and

 

WHEREAS, the Board further authorized and directed
the issuance of one Right (as such number may hereinafter be adjusted pursuant to the provisions of Section 11(p) hereof) with
respect to each share of Common Stock that becomes outstanding between the Record Date (whether originally issued or delivered
from the Company’s treasury) and, except as otherwise provided in Section 22, the earlier of the Distribution Date and the
Expiration Date, each Right initially evidencing the right to purchase one one-thousandth of a Preferred Share, upon the terms
and subject to the conditions hereinafter set forth.

 

NOW, THEREFORE, in consideration of the premises
and the mutual agreements herein set forth, the parties, intending to be legally bound hereby, agree as follows:

 

Section 1.          Certain
Definitions. For purposes of this Agreement, the following terms have the meanings indicated:

 

(a) “Acquiring Person”
shall mean any Person who or which, together with all Related Persons of such Person, from and after the date of this Agreement,
shall be the Beneficial Owner of 15% or more of the shares of Common Stock then outstanding, but shall not include (i) an
Exempt Person or (ii) a Grandfathered Stockholder.

 

Notwithstanding the foregoing:

 

(i) no Person shall become an “Acquiring
Person” solely as a result of (A) the grant of any options, warrants, rights or similar interests (including restricted
shares and restricted stock units) by the Company to its directors, officers and employees pursuant to any employee benefit or
stock ownership plan of the Company, or the exercise or conversion of any such securities so granted, (B) a reduction in
the number of shares of Common Stock outstanding due to the repurchase of shares of Common Stock by the Company, or (C)
a dividend or distribution paid or made by the Company on the outstanding shares of Common Stock or pursuant to a stock split,
subdivision or similar transaction effected by the Company in which all registered holders of Common Stock are treated substantially
equally, provided, however, that if, in each case, a Person, together with all of its Related Persons, becomes the
Beneficial Owner of any additional shares of Common Stock of the Company (other than pursuant to acquiring shares of Common Stock
from the Company pursuant to (A), (B), or (C) of this Section 1(a)(i)), then such Person shall be deemed to be an “Acquiring
Person” unless, upon becoming the Beneficial Owner of such additional shares of Common Stock, such Person, together with
all of its Related Persons, does not Beneficially Own 15% or more of the Common Stock then outstanding;

 

    	 	4	 

     

    

 

(ii) if the Board determines in good faith
that a Person who would otherwise be an “Acquiring Person” has become such inadvertently (including, without limitation,
because (A) such Person was unaware that it beneficially owned a percentage of Common Shares that would otherwise cause
such Person to be an Acquiring Person or (B) such Person was aware of the extent of its Beneficial Ownership of Common Stock
but had no actual knowledge of the consequences of such Beneficial Ownership under this Agreement and had no intention of changing
or influencing control of the Company), and such Person divests as promptly as practicable as soon as practicable (as determined,
in good faith, by the Board) a sufficient number of Common Shares so that such Person is no longer the Beneficial Owner of 15%
or more of the Common Stock then outstanding or, in the case solely of Derivative Interests, such Person terminates as promptly
as practicable as soon as practicable (as determined, in good faith, by the Board) the subject derivative transaction or transactions
or disposes of the subject derivative security or securities as promptly as practicable as soon as practicable (as determined,
in good faith, by the Board), or establishes to the satisfaction of the Board that such Derivative Interests are not held with
any intention of changing or influencing control of the Company, then such Person shall not be deemed to be or ever to have been
an “Acquiring Person” for any purposes of this Agreement as a result of such inadvertent acquisition;

 

(iii) if such Person is a bona fide swaps dealer
who has become an “Acquiring Person” as a result of its actions in the ordinary course of its business that the Board
determines, in its sole discretion, were taken without the intent or effect of evading or assisting any other Person to evade the
purposes and intent of this Agreement, or otherwise seeking to control or influence the management or policies of the Company;
or

 

(iv) as the result of the acquisition of shares
of Common Stock directly from the Company in one or more transactions approved by the Board of Directors; provided however,
that if a Person shall become the Beneficial Owner of more than 15% or more of the shares of Common Stock then outstanding by reason
of share purchases or issuances directly from the Company and shall, after that date, become Beneficial Owner of any additional
shares of Common Stock without the prior written consent of the Company or as otherwise referenced in this Section 1(a) and shall
then Beneficially Own more than 15% of the shares of Common Stock then outstanding, then such Person shall be deemed to be an “Acquiring
Person”.

 

(b) “Act” shall mean
the Securities Act of 1933, as amended.

 

(c) “Adjustment Shares”
shall have the meaning set forth in Section 11(a)(ii) hereof.

 

(d) “Affiliate” and
“Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules
and Regulations under the Exchange Act; provided, however, that no director or officer of the Company shall be deemed
an Affiliate or Associate of any other director or officer of the Company solely as a result of his or her being a director or
officer of the Company.

 

    	 	5	 

     

    

 

(e) “Agreement” shall
have the meaning set forth in the preamble of this Agreement, as it may from time to time be supplemented, amended, renewed, restated
or extended pursuant to the applicable provisions hereof.

 

(f) A Person shall be deemed the “Beneficial
Owner” of, shall be deemed to have “Beneficial Ownership” of, and shall be deemed to “beneficially
own,” any securities:

 

(i) which such Person or any of such Person’s
Related Persons beneficially owns, directly or indirectly (as determined pursuant to Rule 13d-3 of the General Rules and Regulations
under the Exchange Act);

 

(ii) which such Person or any of such Person’s
Related Persons, directly or indirectly, has the right to acquire (whether such right is exercisable immediately or only after
the passage of time or upon the satisfaction of one or more conditions (whether or not within the control of such Person), compliance
with regulatory requirements or otherwise) pursuant to any agreement, arrangement or understanding (whether or not in writing and
other than customary agreements with and between underwriters and selling group members with respect to a bona fide public offering
of securities) or upon the exercise of conversion rights, exchange rights, other rights, warrants, or options, or otherwise; provided,
however, that a Person shall not be deemed the “Beneficial Owner” of, to have “Beneficial Ownership”
of, or to “beneficially own,” (A) securities tendered pursuant to a tender offer or exchange offer made in accordance
with the General Rules and Regulations under the Exchange Act by or on behalf of such Person or any of such Person’s Related
Persons until such tendered securities are accepted for purchase or exchange, (B) securities issuable upon exercise of Rights
at any time prior to the occurrence of a Triggering Event, or (C) securities issuable upon exercise of Rights from and after
the occurrence of a Triggering Event, which Rights were acquired by such Person or any of such Person’s Related Persons prior
to the Distribution Date or pursuant to Section 3(a) or Section 22 hereof (the “Original Rights”) or
pursuant to Section 11(i) or Section 11(p) hereof in connection with an adjustment made with respect to any Original Rights;

 

(iii) which such Person or any of such Person’s
Related Persons, directly or indirectly, has the right to vote or dispose of, including pursuant to any agreement, arrangement,
or understanding (whether or not in writing); provided, however, that a Person shall not be deemed the “Beneficial
Owner” of, to have “Beneficial Ownership” of, or to “beneficially own,” any security as a result
of an agreement, arrangement or understanding (whether or not in writing) to vote such security if such agreement, arrangement
or understanding: (A) arises solely from a revocable proxy or consent (as such terms are defined in Regulation 14A under
the Exchange Act) given in response to a public proxy or consent solicitation made to more than 10 holders of shares of a class
of stock of the Company registered under Section 12 of the Exchange Act, (B) is not also then reportable by such Person
on Schedule 13D under the Exchange Act (or any comparable or successor report); or (C) arises solely because such security
has been tendered pursuant to a tender or exchange offer made by such Person or any Related Persons thereof until such tendered
security is accepted for payment or exchange;

 

(iv) which are beneficially owned, directly
or indirectly, by any other Person (or any Related Person thereof) with which such Person (or any of such Person’s Related
Persons) has any agreement, arrangement or understanding (whether or not in writing) for the purpose of acquiring, holding, voting
(except pursuant to a revocable proxy as described in the proviso to Section 1(h)(iii)), or disposing of any voting securities
of the Company; provided, however, that nothing in this Section 1(h)(iv) shall cause a Person engaged in business
as an underwriter of securities to be the “Beneficial Owner” of, to have “Beneficial Ownership” of, or
to “beneficially own,” any securities acquired or which such Person has the right to acquire through such Person’s
participation in good faith in a firm commitment underwriting until the expiration of forty (40) days after the date of such acquisition,
and then only if such securities continue to be owned by such Person at such expiration of forty (40) days; or

 

    	 	6	 

     

    

 

(v) which are the subject of, or the reference
securities for, or that underlie, any Derivative Interest of such Person or any of such Person’s Related Persons, with the
number of shares of Common Stock deemed beneficially owned being the notional or other number of shares of Common Stock specified
in the documentation evidencing the Derivative Interest as being subject to being acquired upon the exercise or settlement of the
Derivative Interest or as the basis upon which the value or settlement amount of such Derivative Interest is to be calculated in
whole or in part or, if no such number of Common Shares is specified in such documentation, as determined by the Board in its sole
discretion to be the number of shares of Common Stock to which the Derivative Interest relates.

 

Notwithstanding anything in this definition
of Beneficial Ownership to the contrary, for all purposes of this Agreement, the phrase “then outstanding,” when used
with reference to a Person’s Beneficial Ownership of securities of the Company, shall mean the number of such securities
then issued and outstanding together with the number of such securities not then actually issued and outstanding that such Person,
together with all Related Persons, would be deemed to Beneficially Own hereunder. The number of Common Shares not outstanding that
such Person, together with all Related Persons of such Person, is otherwise deemed to Beneficially Own for purposes of this Agreement
shall be deemed to be outstanding for the purpose of computing the percentage of the outstanding number of Common Shares owned
by such Person, together with all Related Persons of such Person, but shall not be deemed to be outstanding for the purpose of
computing the percentage of outstanding Common Shares owned by any other Person.

 

No Person who is an officer, director or employee
of an Exempt Person shall be deemed, solely by reason of such Person’s status or authority as such, to be the “Beneficial
Owner” of, to have “Beneficial Ownership” of or to “Beneficially Own” any securities that are “Beneficially
Owned” (as defined in this Section 1(h)), including, without limitation, in a fiduciary capacity, by an Exempt Person or
by any other such officer, director or employee of an Exempt Person.

 

Notwithstanding any of the foregoing, no Person
shall be deemed to be the “Beneficial Owner” of, to have “Beneficial Ownership” of or to “Beneficially
Own” any securities which such Person or any of such Person’s Related Persons would otherwise be deemed to “Beneficially
Own” pursuant to this Section 1(h) solely as a result of any merger or other acquisition agreement between the Company and
such Person (or one or more of such Person’s Related Persons), or any tender, voting or support agreement entered into by
such Person (or one or more of such Person’s Related Persons) in connection therewith, if, prior to such Person becoming
an Acquiring Person, the Board has approved such merger or other acquisition agreement, or such tender, voting or support agreement.

 

(g) “Board” shall
have the meaning set forth in the recitals to this Agreement and also includes any duly authorized committee thereof.

 

    	 	7	 

     

    

 

(h) “Business Day”
shall mean any day other than a Saturday, Sunday or a day on which banking institutions in the State of New York are authorized
or obligated by law or executive order to close.

 

(i) “Bylaws” shall
mean the Company’s Bylaws, as such may be amended, modified or restated from time to time.

 

(j) “Certificate of Incorporation”
shall mean the Company’s Certificate of Incorporation, as such may be amended, modified or restated from time to time.

 

(k) “Close of Business”
on any given date shall mean 5:00 p.m., New York City time, on such date; provided, however, that if
such date is not a Business Day, it shall mean 5:00 p.m., New York City time, on the next succeeding Business Day.

 

(l) “Closing Price”
of any security on any given day shall be the last sale price, regular way, of such security or, in case no such sale takes place
on such day, the average of the closing bid and asked prices, regular way, on the principal trading market on which such security
is then traded.

 

(m) “Common Stock”
shall mean the shares of common stock, par value $0.0001 per share, of the Company or any other shares of capital stock of the
Company into which such shares shall be reclassified or changed, except that “Common Stock” when used with reference
to any Person other than the Company shall mean the capital stock of such Person with the greatest voting power, or the equity
securities or other equity interests having power to control or direct the management of such Person.

 

(n) “Common Stock Equivalents”
shall have the meaning set forth in Section 11(a)(iii) hereof.

 

(o) “Company” shall
have the meaning set forth in the preamble hereto, except as otherwise provided in Section 13(a) hereof.

 

(p) “Current Market Price”
shall have the meaning set forth in Section 11(d) hereof.

 

(q) “Current Value”
shall have the meaning set forth in Section 11(a)(iii) hereof.

 

(r) “Derivative Interest”
shall mean any derivative securities (as defined under Rule 16a-1 under the Exchange Act) that increase in value as the value of
the underlying equity increases, including, but not limited to, a long convertible security, a long call option and a short put
option position, in each case, regardless of whether (i) such interest conveys any voting rights in such security, (ii)
such interest is required to be, or is capable of being, settled through delivery of such security or (iii) transactions
hedging the economic effect of such interest.

 

(s) “Distribution Date”
shall mean the earlier of (i) the Close of Business on the 10th Business Day (or such later date as may be
determined from time to time by action of a majority of the Board prior to the Distribution Date that would otherwise have occurred)
after the Shares Acquisition Date (or, if the 10th Business Day after the Shares Acquisition Date occurs before the Record Date,
then the Close of Business on the Record Date), or (ii) the Close of Business on the 10th Business Day (or such later date
as may be determined from time to time by action of the Board prior to the Distribution Date that would otherwise have occurred)
after the date of the commencement of, or first public announcement of the intent of any Person (other than an Exempt Person) to
commence (within the meaning of Rule 14d-2(a) of the General Rules and Regulations under the Exchange Act) following the date hereof,
a tender or exchange offer the consummation of which would result in any Person (other than an Exempt Person) becoming an Acquiring
Person; provided, however, that if a tender or exchange offer is terminated prior to the occurrence of a Distribution
Date, then no Distribution Date shall occur as a result of such tender or exchange offer. The Board may, if deferral is allowed
in clause (i) or (ii) of the preceding sentence, defer the date set forth in such clause, as applicable, to a specified later date
or an unspecified later date to be determined by a subsequent action or event.

 

    	 	8	 

     

    

 

(t) “Equivalent Preferred Shares”
shall have the meaning set forth in Section 11(b) hereof.

 

(u) “Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended.

 

(v) “Exchange Property”
shall have the meaning set forth in Section 24(f) hereof.

 

(w) “Exchange Ratio”
shall have the meaning set forth in Section 24(a) hereof.

 

(x) “Exchange Recipients”
shall have the meaning set forth in Section 24(f) hereof.

 

(y) “Exempt Person”
shall mean (i) the Company, (ii) any Subsidiary of the Company, (iii) any employee stock ownership plan, employee
benefit plan or other compensation program or arrangement of the Company or of any of its Subsidiaries, or any Person holding Common
Shares for or pursuant to the terms of any such plan, program or arrangement or for the purpose of funding any such plan, program
or arrangement, (iv) any Person organized, appointed or established by the Company or any of its Subsidiaries for or pursuant
to the terms of any such plan, program or arrangement during the time such Person acts in such capacity, and (v) any Person
who or which the Board determines, which determination shall be made in the sole and absolute discretion of the Board, prior to
the time such Person would otherwise be an Acquiring Person, should be exempted from the definition of Acquiring Person; provided,
however, that the Board may make such exemption subject to such conditions, if any, as the Board may determine.

 

(z) “Expiration Date”
shall have the meaning set forth in Section 7(a) hereof.

 

(aa) “Final Expiration Date”
shall have the meaning set forth in Section 7(a) hereof.

 

(bb) “General Rules and Regulations”
shall mean Part 240, Subpart A — Rules and Regulations under the Securities Exchange Act of 1934, as amended.

 

(cc) “Grandfathered Stockholder”
shall mean any Person who or which would, as of the time of the first public announcement by the Company of the adoption of this
Rights Agreement (including any shares Beneficial Ownership of which is acquired on the date of such announcement pursuant to orders
placed prior to such announcement), be deemed an “Acquiring Person,” unless and until such Person (together with all
Related Persons) shall acquire after such announcement by the Company of the adoption of this Rights Agreement, without the
prior approval of the Board of Directors, Beneficial Ownership of any additional shares of Common Stock (other than as a result
of (i) a stock dividend, stock split, subdivision or similar transaction effected by the Company in which all registered
holders of Common Shares are treated substantially equally, (ii) the grant or issuance by the Company to its directors,
officers and employees of options, warrants, rights or similar interests to acquire Common Stock by the Company pursuant to any
employee benefit, stock incentive plan, stock option plan or stock ownership plan of the Company adopted by the Board, and the
subsequent exercise or conversion of such options, warrants, rights or similar interests, or (iii) the grant or issuance
by the Company to its directors, officers and employees of restricted Common Stock or restricted stock units and the subsequent
vesting of such shares or stock units, pursuant to a restricted stock or other compensation plan or arrangement adopted by the
Board) while such Person (together with all Related Persons) is the Beneficial Owner of 15% or more of the Common Stock then outstanding.

 

    	 	9	 

     

    

 

(dd) “NASDAQ” shall
mean The NASDAQ Stock Market.

 

(ee) “Original Rights”
shall have the meaning set forth in Section 1(h)(ii) hereof.

 

(ff) “Ownership Statement”
shall have the meaning set forth in Section 3(a) hereof.

 

(gg) “Person” shall
mean any individual, firm, corporation, partnership, limited liability company, limited liability partnership, trust, association,
syndicate or other entity, and shall include any successor (by merger or otherwise) of such entity.

 

(hh) “Preferred Shares”
shall mean shares of Series A Junior Participating Preferred Stock, par value $0.0001 per share, of the Company having the rights
and preferences set forth in the form of Certificate of Designation attached to this Agreement as Exhibit A, and, to the
extent that there are not a sufficient number of shares of Series A Junior Participating Preferred Stock authorized to permit the
full exercise of the Rights, any other series of preferred stock of the Company designated for such purpose containing terms substantially
similar to the terms of the Series A Junior Participating Preferred Stock.

 

(ii) “Principal Party”
shall have the meaning set forth in Section 13(b) hereof.

 

(jj) “Purchase Price”
shall have the meaning set forth in Section 7(b) hereof.

 

(kk) “Record Date”
shall have the meaning set forth in the recital hereto.

 

(ll) “Redemption Period”
shall have the meaning set forth in Section 23(a) hereof.

 

(mm) “Redemption Price”
shall have the meaning set forth in Section 23(a) hereof.

 

(nn) “Related Person”
shall mean, as to any Person, any Affiliates or Associates of such Person.

 

(oo) “Right” shall
have the meaning set forth in the recital to this Agreement.

 

(pp) “Rights Agent”
shall have the meaning set forth in the preamble of this Agreement, except as otherwise provided in Section 19 and Section 21 hereof.

 

(qq) “Rights Certificate”
shall have the meaning set forth in Section 3(a) hereof.

 

(rr) “Rights Dividend Declaration
Date” shall have the meaning set forth in the recital to this Agreement.

 

(ss) “Section 11(a)(ii) Event”
shall have the meaning set forth in Section 11(a)(ii) hereof.

 

(tt) “Section 11(a)(ii) Trigger
Date” shall have the meaning set forth in Section 11(a)(iii) hereof.

 

(uu) “Section 13 Event”
shall mean any event described in Section 13(a)(i), Section 13(a)(ii) or Section 13(a)(iii) hereof.

 

(vv) “Shares Acquisition Date”
shall mean the first date of public announcement (which, for purposes of this definition, shall include, without limitation, a
report filed or amended pursuant to Section 13(d) or Section 13(g) under the Exchange Act) by the Company or an Acquiring Person
that an Acquiring Person has become such or that discloses information which reveals the existence of an Acquiring Person.

 

    	 	10	 

     

    

 

(ww) “Spread” shall
have the meaning set forth in Section 11(a)(iii) hereof.

 

(xx) “Subsidiary”
shall mean, with reference to any Person, any corporation or other entity of which an amount of voting securities (or other ownership
interests having ordinary voting power) sufficient to elect at least a majority of the directors (or other Persons performing similar
functions) of such corporation or other entity is beneficially owned, directly or indirectly, by such first mentioned Person, or
otherwise controlled by such first mentioned Person.

 

(yy) “Substitution Period”
shall have the meaning set forth in Section 11(a)(iii) hereof.

 

(zz) “Summary of Rights”
shall have the meaning set forth in Section 3(b) hereof.

 

(aaa) “Trading Day”
shall mean a day on which the principal national securities exchange on which the Common Shares are listed or admitted to trading
is open for the transaction of business or, if the Common Shares are not listed or admitted to trading on any national securities
exchange, a Business Day.

 

(bbb) “Triggering Event”
shall mean a Section 11(a)(ii) Event or any Section 13 Event.

 

Section 2.          Appointment
of the Rights Agent. The Company hereby appoints the Rights Agent to act as rights agent for the Company in accordance with
the express terms and conditions hereof (and not implied terms and conditions), and the Rights Agent hereby accepts such appointment.
The Company may from time to time appoint such co-rights agents as it may deem necessary or desirable, upon ten (10) calendar days’
prior written notice to the Rights Agent. In the event the Company appoints one or more co-Rights Agents, the respective duties
of the Rights Agent and any co-Rights Agents under the provisions of this Agreement shall be as the Company reasonably determines,
and the Company shall notify, in writing, the Rights Agent and any co-Rights Agents of such duties. The Rights Agent shall have
no duty to supervise, and shall in no event be liable for, the acts or omissions of any such co-rights agent.

 

Section 3.          Issuance
of Rights Certificates.

 

(a) Until the Distribution Date (i) the
Rights will be evidenced (subject to Section 3(b) and Section 3(c) hereof) by the certificates for the Common Stock registered
in the names of the holders of the Common Stock (which certificates for Common Stock shall be deemed also to be certificates for
Rights) or by the book entry Common Stock registered in the name of the holders, evidenced by current ownership statements issued
with respect to uncertificated Common Stock in lieu of such certificates (“Ownership Statements”) (which
Ownership Statements shall be deemed also to be certificates for Rights) and not by separate certificates, and the registered holders
of the Common Stock shall also be the registered holders of the associated Rights, and (ii) the Rights will be transferable
only in connection with the transfer of the underlying Common Stock (including a transfer to the Company). As soon as practicable
after the Distribution Date, the Company shall prepare and execute, and upon the written request of the Company, the Rights Agent
shall countersign and the Company will send or cause to be sent (and the Rights Agent will, if so requested and provided with all
necessary information and documents will, at the expense of the Company) send, in accordance with Section 26 hereof, to each record
holder of the Common Stock as of the Close of Business on the Distribution Date (other than an Acquiring Person or any Related
Person of an Acquiring Person), one or more rights certificates, in substantially the form of Exhibit B attached hereto
(the “Rights Certificates”), evidencing one Right for each shares of Common Stock so held, subject to
adjustment as provided herein. In the event that an adjustment in the number of Rights per share of Common Stock has been made
pursuant to Section 11(i) or Section 11(p) hereof, at the time of distribution of the Rights Certificates, the Company shall not
be required to issue Rights Certificates evidencing fractional Rights but may, in lieu thereof, make the necessary and appropriate
rounding adjustments (in accordance with Section 14(a) hereof) so that Rights Certificates evidencing only whole numbers of Rights
are distributed and cash is paid in lieu of any fractional Rights. As of and after the Distribution Date, the Rights will be evidenced
solely by such Rights Certificates. The Company shall promptly notify the Rights Agent in writing upon the occurrence of the Distribution
Date. Until such written notice is received by the Rights Agent, the Rights Agent may presume conclusively for all purposes that
the Distribution Date has not occurred.

 

    	 	11	 

     

    

 

(b) As promptly as practicable following the
Record Date, the Company shall make available a copy of a Summary of Rights, in substantially the form attached hereto as Exhibit
C (the “Summary of Rights”), to each record holder of Common Stock as of the Close of Business on
the Record Date who may so request a copy from time to time prior to the Expiration Date. With respect to Common Stock outstanding
as of the Record Date, or issued subsequent to the Record Date, until the earlier of the Distribution Date and the Expiration Date,
the Rights associated with such Common Stock will be evidenced by the certificate or Ownership Statement for such Common Stock
registered in the names of the holders thereof, in each case together with the Summary of Rights. Until the earlier of the Distribution
Date and the Expiration Date, the surrender for transfer of any certificate or Ownership Statement for Common Stock outstanding
on the Record Date, with or without a copy of the Summary of Rights, shall also constitute the transfer of the Rights associated
with the Common Stock evidenced by such certificate or Ownership Statement.

 

(c) Rights shall without any further action,
be issued in respect of all shares of Common Stock that are issued (whether originally issued or from the Company’s treasury)
after the Record Date but prior to the earlier of the Distribution Date and the Expiration Date and, to the extent provided in
Section 22 hereof, in respect of Common Stock issued after the Distribution Date. Certificates and Ownership Statements evidencing
such Common Stock shall have printed or otherwise affixed to them a legend in substantially the following form:

 

“This [certificate/statement]
also evidences and entitles the registered holder hereof to certain Rights as set forth in the Rights Agreement between Highpower
International, Inc. (the “Company”) and Corporate Stock Transfer Inc., dated as of September 12, 2017 (the “Rights
Agreement”), the terms of which are hereby incorporated herein by reference and a copy of which is on file at the principal
offices of the Company. Under certain circumstances, as set forth in the Rights Agreement, such Rights will be evidenced by separate
certificates and will no longer be evidenced by this [certificate/statement]. The Company will mail to the registered holder of
this [certificate/statement] a copy of the Rights Agreement, as in effect on the date of mailing, without charge, promptly after
receipt of a written request therefor. Under certain circumstances set forth in the Rights Agreement, Rights beneficially owned
by any Person who is, was, or becomes an Acquiring Person or any Related Person thereof (as such capitalized terms are defined
in the Rights Agreement), whether currently beneficially owned by or on behalf of such Person or by any subsequent beneficial owner,
may become null and void.”

 

    	 	12	 

     

    

 

With respect to such certificates or Ownership
Statements containing the foregoing legend, until the earlier of the Distribution Date and the Expiration Date, the Rights associated
with the Common Stock evidenced by such certificates or Ownership Statements shall be evidenced by such certificates or Ownership
Statements alone and the surrender for transfer of any certificate or Ownership Statement for Common Stock shall also constitute
the transfer of the Rights associated with the Common Stock evidenced by such certificate or Ownership Statement. Notwithstanding
this Section 3(c) or anything to the contrary that may be contained elsewhere in this Agreement, the omission of a legend shall
not affect the enforceability of any part of this Agreement or the rights of any registered holder of Rights Certificates. In the
event the Company purchases or otherwise acquires any shares of Common Stock after the Record Date but prior to the Distribution
Date, any Rights associated with such Common Stock shall be deemed cancelled and retired so that the Company shall not be entitled
to exercise any Rights associated with such shares of Common Stock that are no longer outstanding.

 

After the Record Date but prior to the earlier
of the Distribution Date and the Expiration Date, if new certificate(s) representing Common Stock are issued in connection with
the transfer, split-up, combination or exchange of certificate(s) representing Common Stock or if new certificate(s) representing
shares of Common Stock are issued to replace any certificate(s) that have been mutilated, destroyed, lost, or stolen, then such
new certificate(s) shall bear a legend in substantially the form of the foregoing.

 

Section 4.          Form
of Rights Certificates.

 

(a) The Rights Certificates (and the forms of
election to purchase and of assignment and the certificates contained therein to be printed on the reverse thereof) shall each
be substantially in the form attached hereto as Exhibit B and may have such marks of identification or designation and such
legends, summaries or endorsements printed thereon as the Company may deem appropriate (but which do not affect the rights, duties,
liabilities or responsibilities of the Rights Agent) and as are not inconsistent with the provisions of this Agreement, or as may
be required to comply with any applicable law or with any rule or regulation made pursuant thereto or with any rule or regulation
of any national securities exchange on which the Rights may from time to time be listed, or to conform to usage. Subject to the
provisions of Section 22 hereof, the Rights Certificates, whenever distributed, shall be dated as of the Record Date and on their
face shall entitle the registered holders thereof to purchase such number of one one-thousandths of a Preferred Share as shall
be set forth therein at the Purchase Price, but the amount and type of securities, cash or other assets that may be acquired upon
the exercise of each Right and the Purchase Price thereof shall be subject to adjustment as provided herein.

 

(b) Any Rights Certificate issued pursuant hereto
that represents Rights beneficially owned by: (i) an Acquiring Person or any Related Person of an Acquiring Person, (ii)
a transferee of an Acquiring Person (or of any such Related Person) who becomes a transferee after the Acquiring Person becomes
such, or (iii) a transferee of an Acquiring Person (or of any such Related Person) who becomes a transferee prior to or
concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer (whether
or not for consideration) from the Acquiring Person (or any such Related Person) to holders of equity interests in such Acquiring
Person or to any Person with whom such Acquiring Person has any continuing agreement, arrangement or understanding (whether or
not in writing) regarding the transferred Rights or (B) a transfer which the Board, in its sole discretion, has determined
is part of a plan, arrangement or understanding which has as a primary purpose or effect the avoidance of Section 7(e) hereof,
and any Rights Certificate issued pursuant to Section 6 or Section 11 hereof upon transfer, exchange, replacement or adjustment
of any other Rights Certificate referred to in this sentence, shall contain (to the extent feasible, and only if the Company has
provided specific written instructions to the Rights Agent) a legend in substantially the following form:

 

    	 	13	 

     

    

 

“The Rights evidenced by this
Rights Certificate are or were beneficially owned by a Person who was or became an Acquiring Person or a Related Person of an Acquiring
Person (as such terms are defined in the Rights Agreement). Accordingly, this Rights Certificate and the Rights evidenced hereby
may become null and void in the circumstances specified in Section 7(e) of the Rights Agreement.”

 

The Company shall give written notice to the
Rights Agent promptly after it becomes aware of the existence and identity of any Acquiring Person or any Related Person thereof.
Until such notice is received by the Rights Agent, the Rights Agent may presume conclusively for all purposes that no Person has
become an Acquiring Person or a Related Person of an Acquiring Person. The Company shall instruct the Rights Agent in writing of
the Rights which should be so legended.

 

Notwithstanding this Section 4(b) or anything
to the contrary that may be contained elsewhere in this Agreement, the omission of the foregoing legend or any legend substantially
similar thereto shall not affect the enforceability of any part of this Agreement or the rights of any registered holder of Rights
Certificates.

 

Section 5.          Countersignature
and Registration.

 

(a) The Rights Certificates shall be duly executed
on behalf of the Company by its Chairman of the Board, its Chief Executive Officer, its President or any Vice President of the
Company, and by the Secretary, an Assistant Secretary, the Treasurer/Chief Financial Officer or an Assistant Treasurer, either
manually or by facsimile or portable document format signature. The Rights Certificates shall be countersigned by an authorized
signatory of the Rights Agent, either manually or by facsimile or portable document format signature, and shall not be valid for
any purpose unless so countersigned. In case any officer of the Company who shall have signed any of the Rights Certificates shall
cease to be such officer of the Company before countersignature by an authorized signatory of the Rights Agent and issuance and
delivery by the Company, such Rights Certificates, nevertheless, may be countersigned by an authorized signatory of the Rights
Agent and issued and delivered by the Company with the same force and effect as though the Person who signed such Rights Certificates
had not ceased to be such officer of the Company; and any Rights Certificates may be signed on behalf of the Company by any Person
who, at the actual date of the execution of such Rights Certificate, shall be a proper officer of the Company to sign such Rights
Certificate, although at the date of the execution of this Agreement any such Person was not such an officer.

 

    	 	14	 

     

    

 

(b) Following the Distribution Date, and receipt
by the Rights Agent of written notice to that effect and all other relevant and necessary information and documents referred to
in Section 3(a), the Rights Agent will keep, or cause to be kept, at its office or offices designated as the appropriate place
for surrender of Rights Certificates upon exercise or transfer, books for registration and transfer of the Rights Certificates
issued hereunder. Such books shall show the names and addresses of the respective holders of the Rights Certificates, the number
of Rights evidenced on its face by each of the Rights Certificates, and the date of each of the Rights Certificates.

 

Section 6.            Transfer,
Split-Up, Combination, and Exchange of Rights Certificates; Mutilated, Destroyed, Lost or Stolen Rights Certificates.

 

(a) Subject to the provisions of Section 4(b),
Section 7(e) and Section 14 hereof, at any time after the Close of Business on the Distribution Date, and at or prior to the Close
of Business on the Expiration Date, any Rights Certificate or Certificates (other than Rights Certificates representing Rights
that have become null and void pursuant to Section 7(e) hereof, or evidencing Rights that have been redeemed or exchanged pursuant
to Section 23 or Section 24 hereof) may be transferred, split-up, combined or exchanged for another Rights Certificate or Certificates,
entitling the registered holder to purchase a like number of one one-thousandths of a Preferred Share (or, following the occurrence
of a Triggering Event, Common Stock, other securities, cash or other assets, as the case may be) as the Rights Certificate or Certificates
surrendered then entitles such holder (or former holder in the case of a transfer) to purchase. Any registered holder desiring
to transfer, split-up, combine or exchange any Rights Certificate or Certificates shall make such request in writing delivered
to the Rights Agent, and shall surrender, together with any required form of assignment duly executed and properly completed, the
Rights Certificate or Certificates to be transferred, split-up, combined, or exchanged, with the form of assignment and certificate
contained therein properly completed and duly executed and with all signatures guaranteed, at the office or offices of the Rights
Agent designated for such purpose. Neither the Rights Agent nor the Company shall be obligated to take any action whatsoever with
respect to the transfer of any such surrendered Rights Certificate until the registered holder shall have properly completed and
duly executed the certificate contained in the form of assignment on the reverse side of such Rights Certificate and shall have
provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) of the Rights represented
by such Rights Certificate or Related Persons thereof as the Company or the Rights Agent shall reasonably request. Thereupon the
Rights Agent shall, subject to Section 4(b), Section 7(e), Section 14 and Section 24 hereof, countersign and deliver to the Person
entitled thereto a Rights Certificate or Rights Certificates, as the case may be, as so requested. The Company may require payment
from a registered holder of a Rights Certificate of a sum sufficient to cover any tax or governmental charge that may be imposed
in connection with any transfer, split-up, combination, or exchange of Rights Certificates. If and to the extent the Company does
require payment of any such taxes or charges, the Company shall give the Rights Agent prompt written notice thereof and the Rights
Agent shall not deliver any Rights Certificate unless and until it is satisfied that all such payments have been made, and the
Rights Agent shall forward any such sum collected by it to the Company or to such Persons as the Company specifies by written notice.
The Rights Agent shall have no duty or obligation to take any action with respect to a holder of a Rights Certificate under any
Section of this Agreement which requires the payment by such holder of a Rights Certificate of applicable taxes and/or charges
unless and until it is satisfied that all such taxes and/or charges have been paid.

 

    	 	15	 

     

    

 

(b) Subject to the provisions of this Agreement,
at any time after the Distribution Date and prior to the Expiration Date, upon receipt by the Company and the Rights Agent of evidence
reasonably satisfactory to them of the loss, theft, destruction or mutilation of a Rights Certificate, and, in case of loss, theft
or destruction, of indemnity or security reasonably satisfactory to them, and reimbursement to the Company and the Rights Agent
of all reasonable expenses incidental thereto, and upon surrender to the Rights Agent and cancellation of the Rights Certificate,
if mutilated, the Company will execute and deliver a new Rights Certificate of like tenor to the Rights Agent for countersignature
and delivery to the registered holder in lieu of the Rights Certificate so lost, stolen, destroyed or mutilated.

 

Section 7.          Exercise
of Rights; Purchase Price; Expiration Date of Rights.

 

(a) Subject to Section 7(e) hereof, at any time
after the Distribution Date the registered holder of any Rights Certificate may exercise the Rights evidenced thereby (except as
otherwise provided herein including, without limitation, the restrictions on exercisability set forth in Section 9(c), Section
11(a)(iii), and Section 23(a) hereof) in whole or in part upon surrender of the Rights Certificate, with the form of election to
purchase and the certificate contained therein properly completed and duly executed, to the Rights Agent at the office or offices
of the Rights Agent designated for such purpose, together with payment of the aggregate Purchase Price with respect to the total
number of one one-thousandths of a Preferred Share (or, following the occurrence of a Triggering Event, Common Stock, other securities,
cash or other assets, as the case may be) as to which such surrendered Rights are then exercisable, at or prior to the earliest
of (i) the Close of Business on September 20, 2020 (the “Final Expiration Date”),
(ii) the time at which the Rights are redeemed as provided in Section 23 hereof, and (iii) the time at which the
Rights are exchanged in full as provided in Section 24 hereof (the earliest of (i), (ii), and (iii) being herein referred to as
the “Expiration Date”).

 

(b) The purchase price for each one one-thousandth
of a Preferred Share pursuant to the exercise of a Right initially shall be $25, shall be subject to adjustment from time to time
as provided in Section 11 and Section 13(a) hereof, and shall be payable in accordance with Section 7(c) hereof (such purchase
price, as so adjusted, the “Purchase Price”).

 

    	 	16	 

     

    

 

(c) Upon receipt of a Rights Certificate evidencing
exercisable Rights, with the form of election to purchase and the certificate contained therein properly completed and duly executed,
accompanied by payment, with respect to each Right so exercised, of the Purchase Price (as such amount may be adjusted as provided
herein) per one one-thousandth of a Preferred Share (or, following the occurrence of a Triggering Event, Common Stock, other securities,
cash or other assets, as the case may be) to be purchased as set forth below and an amount equal to any applicable tax or charge,
the Rights Agent shall, subject to Section 7(f) and Section 20(k) hereof, thereupon promptly (i) (A) requisition from any
transfer agent of the Preferred Shares (or make available, if the Rights Agent is the transfer agent for such shares) certificates
for the total number of one one-thousandths of a Preferred Share to be purchased and the Company hereby irrevocably authorizes
its transfer agent to comply with all such requests, or (B) if, subject to Section 14 hereof, the Company shall have elected
to deposit the total number of Preferred Shares issuable upon exercise of the Rights hereunder with a depositary agent, requisition
from the depositary agent of depositary receipts evidencing such number of one one-thousandths of a Preferred Share as are to be
purchased (in which case certificates for the Preferred Shares evidenced by such receipts shall be deposited by the transfer agent
with the depositary agent) and the Company will direct the depositary agent to comply with such request, (ii) if necessary
to comply with this Agreement, requisition from the Company the amount of cash, if any, to be paid in lieu of fractional shares
in accordance with Section 14 hereof, (iii) after receipt of such certificates or depositary receipts, subject to Section
7(f) below, cause the same to be delivered to or upon the order of the registered holder of such Rights Certificate, registered
in such name or names as may be designated by such holder, and (iv) if necessary to comply with this Agreement, after receipt
thereof, subject to Section 7(f) below, deliver such cash, if any, to or upon the order of the registered holder of such Rights
Certificate. The payment of the Purchase Price (as such amount may be reduced pursuant to Section 11(a)(iii) hereof) shall be made
in cash or by certified bank check or bank draft payable to the order of the Company. In the event that the Company is obligated
to issue other securities (including Common Stock) of the Company, pay cash or distribute other property pursuant to Section 11(a)
hereof, the Company will make all arrangements necessary so that such other securities, cash or other property are available for
distribution by the Rights Agent, if and when necessary to comply with this Agreement, and until so received, the Rights Agent
shall have no duties or obligations with respect to such securities, cash and/or other property. The Company reserves the right
to require prior to the occurrence of a Triggering Event that, upon any exercise of Rights, a number of Rights be exercised so
that only whole Preferred Shares would be issued.

 

(d) In case the registered holder of any Rights
Certificate shall exercise less than all the Rights evidenced thereby, a new Rights Certificate evidencing the Rights remaining
unexercised shall be issued by the Rights Agent and delivered to, or upon the order of, the registered holder of such Rights Certificate,
registered in such name or names as may be designated by such holder, subject to the provisions of Sections 6 and 14 hereof.

 

(e) Notwithstanding anything in this Agreement
to the contrary, from and after the first occurrence of a Section 11(a)(ii) Event, any Rights beneficially owned by (i)
an Acquiring Person or a Related Person of an Acquiring Person, (ii) a transferee of an Acquiring Person (or of any such
Related Person) who becomes a transferee after the Acquiring Person becomes such, or (iii) a transferee of an Acquiring
Person (or of any such Related Person) who becomes a transferee prior to or concurrently with the Acquiring Person becoming such
and receives such Rights pursuant to either (A) a transfer (whether or not for consideration) from the Acquiring Person
(or any such Related Person) to holders of equity interests in such Acquiring Person (or any such Related Person) or to any Person
with whom the Acquiring Person (or any such Related Person) has any continuing agreement, arrangement or understanding (whether
or not in writing) regarding the transferred Rights or (B) a transfer that the Board, in its sole discretion, has determined
is part of a plan, arrangement or understanding (whether or not in writing) that has as a primary purpose or effect the avoidance
of this Section 7(e), shall become null and void without any further action and no holder of such Rights shall have any rights
whatsoever with respect to such Rights, whether under any provision of this Agreement, the Rights Certificates or otherwise (including,
without limitation, the rights and preferences pursuant to Sections 7, 11, 13, 23 and 24 hereof). The Company shall use all reasonable
efforts to ensure that the provisions of this Section 7(e) and Section 4(b) hereof are complied with, but shall have no liability
to any holder of Rights Certificates or any other Person as a result of its failure to make any determinations with respect to
an Acquiring Person or any of its Related Persons or transferees hereunder.

 

    	 	17	 

     

    

 

(f) Notwithstanding anything in this Agreement
or any Rights Certificate to the contrary, neither the Rights Agent nor the Company shall be obligated to undertake any action
with respect to a registered holder of a Rights Certificate upon the occurrence of any purported exercise as set forth in this
Section 7 unless such registered holder shall have (i) properly completed and duly executed the certificate contained in
the form of election to purchase set forth on the reverse side of the Rights Certificate surrendered for such exercise, and (ii)
provided such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) of the Rights represented
by the Rights Certificate or Related Persons of such Beneficial Owner as the Company shall reasonably request.

 

Section 8.          Cancellation
and Destruction of Rights Certificates. All Rights Certificates surrendered for the purpose of exercise, transfer, split-up,
combination or exchange shall, if surrendered to the Company or any of its agents, be delivered to the Rights Agent for cancellation
or in cancelled form, or, if surrendered to the Rights Agent, shall be cancelled by it, and no Rights Certificates shall be issued
in lieu thereof except as expressly permitted by any of the provisions of this Agreement. The Company shall deliver to the Rights
Agent for cancellation and retirement, and the Rights Agent shall so cancel and retire, any other Rights Certificate purchased
or acquired by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all cancelled Rights Certificates
to the Company, or shall, at the written request of the Company, destroy or cause to be destroyed such cancelled Rights Certificates,
and in such case shall deliver a certificate of destruction thereof to the Company.

 

Section 9.          Reservation
and Availability of Capital Stock.

 

(a) The Company covenants and agrees that at
all times prior to the Expiration Date it will cause to be reserved and kept available out of its authorized and unissued Preferred
Shares (and, following the occurrence of a Triggering Event, out of its authorized and unissued Common Shares or other securities
as may be issuable upon exercise of the Rights and/or out of its securities held in treasury, as the case may be), the number of
Preferred Shares (and, following the occurrence of a Triggering Event, Common Stock or other securities, as the case may be) that,
as provided in this Agreement, including, but not limited to, Section 11(a)(iii) hereof, will be sufficient to permit the exercise
in full of all of the outstanding Rights. Upon the occurrence of any events resulting in an increase in the aggregate number of
Preferred Shares (or other equity securities of the Company) issuable upon exercise of all outstanding Rights above the number
then reserved, the Company shall make appropriate increases in the number of shares so reserved.

 

(b) So long as the Preferred Shares (and, following
the occurrence of a Triggering Event, Common Stock or other securities, as the case may be) issuable and deliverable upon the exercise
of the Rights may be listed on any national securities exchange or quoted on a quotation system, the Company shall use its best
efforts to cause, from and after such time as the Rights become exercisable through the Expiration Date, all shares reserved for
such issuance to be listed on such exchange or quoted on such quotation system, as the case may be, upon official notice of issuance
upon such exercise.

 

    	 	18	 

     

    

 

(c) The Company shall use its best efforts to
(i) file, as soon as practicable following the earliest date after the first occurrence of a Section 11(a)(ii) Event on
which the consideration to be delivered by the Company upon exercise of the Rights has been determined in accordance with Section
11(a) hereof, a registration statement on an appropriate form under the Act, with respect to the securities purchasable upon exercise
of the Rights, (ii) cause such registration statement to become effective as soon as practicable after such filing, and
(iii) cause such registration statement to remain effective (with a prospectus at all times meeting the requirements of
the Act) until the earlier of (A) the date as of which the Rights are no longer exercisable for such securities,
and (B) the Expiration Date. The Company will also take such action as may be appropriate under, or to ensure compliance
with, the securities or “blue sky” laws of the various states in connection with the exercisability of the Rights.
The Company may temporarily suspend, for a period of time not to exceed ninety (90) days after the date set forth in clause (i)
of the first sentence of this Section 9(c), the exercisability of the Rights in order to prepare and file such registration statement
and permit it to become effective. Upon any such suspension, the Company shall issue a public announcement (with prompt written
notice thereof to the Rights Agent; and until such written notice is received by the Rights Agent, the Rights Agent may presume
conclusively that no such suspension has occurred) stating that the exercisability of the Rights has been temporarily suspended,
as well as a public announcement at such time as the suspension is no longer in effect (with prompt written notice thereof to the
Rights Agent; and until such written notice is received by the Rights Agent, the Rights Agent may presume conclusively that such
suspension is still in effect). In addition, if the Company shall determine that a registration statement is required following
the Distribution Date, the Company similarly may temporarily suspend the exercisability of the Rights until such time as a registration
statement has been declared effective. Notwithstanding any provision of this Agreement to the contrary, the Rights shall not be
exercisable in any jurisdiction if the requisite qualification in such jurisdiction shall not have been obtained, the exercise
thereof shall not be permitted under applicable law, or a registration statement shall not have been declared effective.

 

(d) The Company covenants and agrees that it
will take all such action as may be necessary to ensure that all one one-thousandths of a Preferred Share (and, following the occurrence
of a Triggering Event, Common Stock or other securities, as the case may be) delivered upon exercise of the Rights shall, at the
time of delivery of the certificates or depositary receipts for such shares (subject to payment of the Purchase Price), be duly
and validly authorized and issued and fully paid and nonassessable.

 

(e) The Company further covenants and agrees
that it will pay when due and payable any and all federal and state taxes and charges that may be payable in respect of the issuance
or delivery of the Rights Certificates and of any certificates, entries in the book entry account system of the transfer agent,
or depositary receipts for a number of one one-thousandths of a Preferred Share (or, following the occurrence of a Triggering Event,
Common Stock or other securities, cash or other assets, as the case may be) upon the exercise of Rights. The Company shall not,
however, be required to pay any tax or charge that may be payable in respect of any transfer or delivery of Rights Certificates
or depositary receipts or entries in the book entry account system of the transfer agent to a Person other than, or the issuance
or delivery of a number of one one-thousandths of a Preferred Share (or, following the occurrence of a Triggering Event, Common
Stock or other securities, cash or other assets, as the case may be) in a name other than that of the registered holder of the
Rights Certificates evidencing Rights surrendered for exercise or to issue or deliver any certificates or depositary receipts or
entries in the book entry account system of the transfer agent for a number of one one-thousandths of a Preferred Share (or, following
the occurrence of a Triggering Event, Common Stock or other securities, cash or other assets as the case may be) in a name other
than that of the registered holder upon the exercise of any Rights until such tax or charge shall have been paid (any such tax
or charge being payable by the registered holder of such Rights Certificates at the time of surrender) or until it has been established
to the Company’s or to the Rights Agent’s satisfaction that no such tax or charge is due.

 

    	 	19	 

     

    

 

Section 10.         Preferred
Shares Record Date. Each Person in whose name any certificate or entry in the book entry account system of the transfer agent
for a number of one one-thousandths of a Preferred Share (or, following the occurrence of a Triggering Event, Common Shares or
other securities, cash or other assets, as the case may be) is issued upon the exercise of Rights shall for all purposes be deemed
to have become the holder of record of such fractional Preferred Shares (or, following the occurrence of a Triggering Event, Common
Shares or other securities, cash, or other assets as the case may be) evidenced thereby on, and such certificate or entry shall
be dated, the date upon which the Rights Certificate evidencing such Rights was duly surrendered and payment of the Purchase Price
(and all applicable taxes and charges) was made; provided, however, that, if the date of such surrender
and payment is a date upon which the Preferred Shares (or, following the occurrence of a Triggering Event, Common Stock or other
securities, cash or other assets, as the case may be) transfer books of the Company are closed, such Person shall be deemed to
have become the record holder of such shares (fractional or otherwise) on, and such certificate or entry shall be dated, the next
succeeding Business Day on which the Preferred Shares (or, following the occurrence of a Triggering Event, Common Shares or other
securities, cash, or other assets as the case may be) transfer books of the Company are open and provided further, that if delivery
of the Preferred Shares is delayed pursuant to Section 9(c), when such Preferred Shares first becomes deliverable. Prior to the
exercise of the Rights evidenced thereby, the registered holder of a Rights Certificate shall not be entitled to any rights of
a stockholder of the Company with respect to shares for which the Rights shall be exercisable, including, without limitation, the
right to vote, to receive dividends or other distributions, or to exercise any preemptive rights, and shall not be entitled to
receive any notice of any proceedings of the Company, except as provided herein.

 

Section 11.         Adjustment
of Purchase Price, Number and Kind of Shares, or Number of Rights. The Purchase Price, the number and kind of shares, or fractions
thereof, purchasable upon exercise of each Right, and the number of Rights outstanding are subject to adjustment from time to time
as provided in this Section 11.

 

(a)(i) In the event the Company shall at any
time after the date of this Agreement (A) declare or pay a dividend on the Preferred Shares payable in Preferred Shares,
(B) subdivide or split the outstanding Preferred Shares, (C) combine or consolidate the outstanding Preferred Shares
into a smaller number of shares, or (D) issue any shares of its capital stock in a reclassification of the Preferred Shares
(including any such reclassification in connection with a consolidation or merger in which the Company is the continuing or surviving
corporation), except as otherwise provided in this Section 11(a) and Section 7(e) hereof, the Purchase Price in effect at the time
of the record date for such dividend or of the effective date of such subdivision, split, combination, consolidation, or reclassification,
and the number and kind of Preferred Shares or fractions thereof (or other capital stock, as the case may be), issuable on such
date, shall be proportionately adjusted so that the registered holder of any Right exercised after such time shall be entitled
to receive, upon payment of the Purchase Price then in effect, the aggregate number and kind of Preferred Shares or fractions thereof
(or other capital stock, as the case may be), which, if such Right had been exercised immediately prior to such date (whether or
not such Right was then exercisable) and at a time when the Preferred Share (or other capital stock, as the case may be) transfer
books of the Company were open, such holder would have owned upon such exercise and been entitled to receive by virtue of such
dividend, subdivision, split, combination, consolidation, or reclassification. If an event occurs that would require an adjustment
under both this Section 11(a)(i) and Section 11(a)(ii) hereof, the adjustment provided for in this Section 11(a)(i) shall be in
addition to, and shall be made prior to, any adjustment required pursuant to Section 11(a)(ii) hereof.

 

    	 	20	 

     

    

 

(ii) In the event any Person shall become an
Acquiring Person (a “Section 11(a)(ii) Event”), then, promptly following the occurrence of such Section
11(a)(ii) Event, proper provision shall be made so that, upon expiration of the Redemption Period, each registered holder of a
Right (except as provided below in Section 11(a)(iii) and in Sections 7(e), 13 and 24 hereof) shall thereafter have the right to
receive, upon exercise thereof at the then current Purchase Price in accordance with the terms of this Agreement, in lieu of a
number of one one-thousandths of a Preferred Share, such number of shares of Common Stock of the Company as shall equal the result
obtained by (A) multiplying the then current Purchase Price by the then number of one one-thousandths of a Preferred Share
for which a Right was exercisable immediately prior to the first occurrence of a Section 11(a)(ii) Event, and (B) dividing
that product (which, following such first occurrence, shall thereafter be referred to as the “Purchase Price”
for each Right and for all purposes of this Agreement) by fifty percent (50%) of the Current Market Price per share of Common Stock
on the date of such first occurrence (such number of shares, the “Adjustment Shares”).

 

(iii) In the event that (A) the number
of shares of Common Stock authorized by the Certificate of Incorporation, but not outstanding or reserved for issuance for purposes
other than upon exercise of the Rights, is not sufficient to permit the exercise in full of the Rights in accordance with Section
11(a)(ii) hereof or (B) the Board otherwise shall determine to do so in its sole discretion, the Company, acting by resolution
of the Board, shall (1) determine the value of the Adjustment Shares issuable upon the exercise of a Right (the “Current
Value”), and (2) with respect to each Right (subject to Section 7(e) hereof), make adequate provision to substitute
for the Adjustment Shares, upon the exercise of such Right and payment of the applicable Purchase Price, (u) cash, (v)
a reduction in the Purchase Price, (w) shares of Common Stock or other equity securities of the Company (including, without
limitation, shares, or units of shares, of preferred stock, such as the Preferred Shares, which the Board has deemed to have essentially
the same value or economic rights as Common Shares (such shares of preferred stock being referred to as “Common Stock
Equivalents”)), (x) debt securities of the Company, (y) other assets, or (z) any combination
of the foregoing, having an aggregate value equal to the Current Value, where such aggregate value has been determined by the Board
based upon the advice of a nationally recognized investment banking firm selected by the Board; provided, however,
that, if, under the circumstances set forth in clause (A) above, the Company shall not have made adequate provision to deliver
value pursuant to clause (2) above within thirty (30) days following the later of (I) the first occurrence
of a Section 11(a)(ii) Event and (II) the date on which the Company’s right of redemption pursuant to Section 23(a)
hereof expires (the later of (I) and (II) being referred to herein as the “Section 11(a)(ii) Trigger Date”),
then the Company shall be obligated to deliver, upon the surrender for exercise of a Right and without requiring payment of the
Purchase Price, Common Shares (to the extent available) and then, if necessary, cash, which shares and cash have an aggregate value
equal to the Spread. For purposes of the preceding sentence, the term “Spread” shall mean the excess
of the Current Value over the Purchase Price. If the Board determines in good faith that it is likely that sufficient additional
shares of Common Stock could be authorized for issuance upon exercise in full of the Rights, the 30 day period set forth above
may be extended to the extent necessary, but not more than 90 days after the Section 11(a)(ii) Trigger Date, in order that the
Company may seek stockholder approval for the authorization of such additional shares (such 30 day period, as it may be extended,
is herein called the “Substitution Period”). To the extent that action is to be taken pursuant to the
first or third sentences of this Section 11(a)(iii), the Company shall provide, subject to Section 7(e) hereof, that such action
shall apply uniformly to all outstanding Rights, and the Company may suspend the exercisability of the Rights until the expiration
of the Substitution Period in order to seek such stockholder approval for such authorization of additional shares or to decide
the appropriate form of distribution to be made pursuant to such first sentence and to determine the value thereof. In the event
of any such suspension, the Company shall issue a public announcement (with prompt written notice thereof to the Rights Agent)
stating that the exercisability of the Rights has been temporarily suspended, as well as a public announcement (with prompt written
notice thereof to the Rights Agent) at such time as the suspension is no longer in effect. For purposes of this Section 11(a)(iii),
the value of each Adjustment Share shall be the Current Market Price per Common Share on the Section 11(a)(ii) Trigger Date and
the per share or per unit value of any Common Stock Equivalent shall be deemed to equal the Current Market Price per Common Share
on such date.

 

    	 	21	 

     

    

 

(b) In case the Company shall fix a record date
for the issuance of rights, options, or warrants to all registered holders of Preferred Shares entitling them to subscribe for
or purchase (for a period expiring within forty-five (45) calendar days after such record date) Preferred Shares (or shares having
the same rights, privileges and preferences as the Preferred Shares (“Equivalent Preferred Shares”))
or securities convertible into Preferred Shares or Equivalent Preferred Shares at a price per Preferred Share or Equivalent Preferred
Share (or having a conversion price per share, if a security convertible into Preferred Shares or Equivalent Preferred Shares)
less than the Current Market Price per Preferred Share on such record date, the Purchase Price to be in effect after such record
date shall be determined by multiplying the Purchase Price in effect immediately prior to such record date by a fraction, the numerator
of which shall be the number of Preferred Shares outstanding on such record date, plus the number of Preferred Shares that the
aggregate offering price of the total number of Preferred Shares or Equivalent Preferred Shares so to be offered (or the aggregate
initial conversion price of the convertible securities so to be offered) would purchase at such Current Market Price, and the denominator
of which shall be the number of Preferred Shares outstanding on such record date plus the number of additional Preferred Shares
or Equivalent Preferred Shares to be offered for subscription or purchase (or into which the convertible securities so to be offered
are initially convertible). In case such subscription price may be paid by delivery of consideration, part or all of which may
be in a form other than cash, the value of such consideration shall be as determined in good faith by the Board, whose determination
shall be described in a statement filed with the Rights Agent and shall be binding and conclusive for all purposes on the Rights
Agent and the holders of the Rights. Preferred Shares owned by or held for the account of the Company shall not be deemed outstanding
for the purpose of any such computation. Such adjustments shall be made successively whenever such a record date is fixed, and
in the event that such rights, options, or warrants are not so issued, the Purchase Price shall be adjusted to be the Purchase
Price that would then be in effect if such record date had not been fixed.

 

    	 	22	 

     

    

 

(c) In case the Company shall fix a record date
for a distribution to all registered holders of Preferred Shares (including any such distribution made in connection with a consolidation
or merger in which the Company is the continuing or surviving corporation) of cash (other than a regular cash dividend out of the
earnings or retained earnings of the Company), assets (other than a dividend payable in Preferred Shares, but including any dividend
payable in stock other than Preferred Shares) or evidences of indebtedness, or of subscription rights or warrants (excluding those
referred to in Section 11(b) hereof), the Purchase Price to be in effect after such record date shall be determined by multiplying
the Purchase Price in effect immediately prior to such record date by a fraction, the numerator of which shall be the Current Market
Price per Preferred Share on such record date, less the fair market value (as determined in good faith by the Board, whose determination
shall be described in a statement filed with the Rights Agent and shall be binding and conclusive for all purposes) of the portion
of the cash, assets or evidences of indebtedness so to be distributed, or of such subscription rights or warrants applicable to
a Preferred Share, and the denominator of which shall be such Current Market Price per Preferred Share. Such adjustments shall
be made successively whenever such a record date is fixed, and in the event that such distribution is not so made, the Purchase
Price shall be adjusted to be the Purchase Price that would then be in effect if such record date had not been fixed.

 

(d)(i) For the purpose of any computation hereunder,
other than computations made pursuant to Section 11(a)(iii) hereof, the “Current Market Price” per shares
of Common Stock on any date shall be deemed to be the average of the daily Closing Prices per share of Common Stock for the thirty
(30) consecutive Trading Days immediately prior to such date, and for purposes of computations made pursuant to Section 11(a)(iii)
hereof, the “Current Market Price” per shares of Common Stock on any date shall be deemed to be the average
of the daily Closing Prices per share of Common Stock for the ten (10) consecutive Trading Days immediately following such date;
provided, however, that in the event that the Current Market Price per shares of Common Stock is determined
during a period following the announcement by the issuer of such share of Common Stock of (A) a dividend or distribution
on such Common Stock payable in shares of Common Stock or securities convertible into such Common Stock (other than the Rights),
or (B) any subdivision, combination, consolidation, reverse stock split or reclassification of such Common Stock, and the
ex-dividend date for such dividend or distribution, or the record date for such subdivision, combination, consolidation, reverse
stock split or reclassification shall not have occurred prior to the commencement of the requisite thirty (30) Trading Day or ten
(10) Trading Day period, as set forth above, then, and in each such case, the Current Market Price shall be properly adjusted to
take into account ex-dividend trading. The Closing Price for each day shall be the last sale price, regular way, or, in case no
such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported in
the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on NASDAQ or,
if the Common Stock is not listed or admitted to trading on NASDAQ, as reported in the principal consolidated transaction reporting
system with respect to securities listed on the principal national securities exchange on which the Common Stock is listed or admitted
to trading or, if the Common Stock is not listed or admitted to trading on any national securities exchange, the last quoted price
or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as reported on a quotation
system then in use, or, if on any such date the Common Stock is not so quoted, the average of the closing bid and asked prices
as furnished by a professional market maker making a market in the Common Stock selected by the Board. If on any such date the
Common Stock is not publicly held and are not so listed, admitted to trading, or quoted, and no market maker is making a market
in the Common Stock, the “Current Market Price” per share of Common Stock shall mean the fair value per share
on such date as determined in good faith by the Board, which determination shall be described in a statement filed with the Rights
Agent and shall be binding and conclusive for all purposes on the Rights Agent and the holders of the Rights.

 

    	 	23	 

     

    

 

(ii) For the purpose of any computation hereunder,
the “Current Market Price” per Preferred Share shall be determined in the same manner as set forth above for
the Common Stock in Section 11(d)(i) hereof (other than the penultimate sentence thereof). If the Current Market Price per Preferred
Share cannot be determined in the manner provided above or if the Preferred Shares are not publicly held or listed, admitted to
trading, or quoted in a manner described in Section 11(d)(i) hereof, the Current Market Price per Preferred Share shall be conclusively
deemed to be an amount equal to 1,000 (as such number may be appropriately adjusted for such events as stock splits, stock dividends
and recapitalizations with respect to the Common Stock occurring after the date of this Agreement) multiplied by the Current Market
Price per share of Common Stock. If neither the Common Stock nor the Preferred Shares are publicly held or listed, admitted to
trading, or quoted, the “Current Market Price” per Preferred Share shall mean the fair value per share as determined
in good faith by a majority of the Board, whose determination shall be described in a statement filed with the Rights Agent and
shall be binding and conclusive for all purposes on the Rights Agent and the holders of the Rights. For all purposes of this Agreement,
the Current Market Price of one one-thousandth of a Preferred Share shall be equal to the Current Market Price of one Preferred
Share divided by 1,000.

 

(e) Anything herein to the contrary notwithstanding,
no adjustment in the Purchase Price shall be required unless such adjustment would require an increase or decrease of at least
one percent (1%) in the Purchase Price; provided, however, that any adjustments which by reason of
this Section 11(e) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All
calculations under this Section 11 shall be made to the nearest cent or to the nearest thousandth of a share of Common Stock or
other share or one-millionth of a Preferred Share, as the case may be.

 

(f) If as a result of an adjustment made pursuant
to Section 11(a)(ii) or Section 13(a) hereof, the registered holder of any Right thereafter exercised shall become entitled to
receive any shares of capital stock other than Preferred Shares, thereafter the number of such other shares so receivable upon
exercise of any Right and the Purchase Price thereof shall be subject to adjustment from time to time in a manner and on terms
as nearly equivalent as practicable to the provisions with respect to the Preferred Shares contained in Sections 11(a), (b), (c),
(d), (e), (g), (h), (i), (j), (k), (l) and (m), and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to the Preferred
Shares shall apply on like terms to any such other shares.

 

(g) All Rights originally issued by the Company
subsequent to any adjustment made to the Purchase Price hereunder shall evidence the right to purchase, at the adjusted Purchase
Price, the number of one one-thousandths of a Preferred Share (or other securities or amount of cash or combination thereof) purchasable
from time to time hereunder upon exercise of the Rights, all subject to further adjustment as provided herein.

 

    	 	24	 

     

    

 

(h) Unless the Company shall have exercised
its election as provided in Section 11(i) hereof, upon each adjustment of the Purchase Price as a result of the calculations made
in Section 11(b) and Section 11(c) hereof, each Right outstanding immediately prior to the making of such adjustment shall thereafter
evidence the right to purchase, at the adjusted Purchase Price, that number of one one-thousandths of a Preferred Share (calculated
to the nearest one-millionth) obtained by (i) multiplying (x) the number of one one-thousandths of a share covered
by a Right immediately prior to this adjustment, by (y) the Purchase Price in effect immediately prior to such adjustment
of the Purchase Price, and (ii) dividing the product so obtained by the Purchase Price in effect immediately after such
adjustment of the Purchase Price.

 

(i) The Company may elect on or after the date
of any adjustment of the Purchase Price to adjust the number of Rights, in lieu of any adjustment in the number of one one-thousandths
of a Preferred Share purchasable upon the exercise of a Right pursuant to Section 11(h) hereof. Each of the Rights outstanding
after the adjustment in the number of Rights shall be exercisable for the number of one one-thousandths of a Preferred Share for
which a Right was exercisable immediately prior to such adjustment. Each Right held of record prior to such adjustment of the number
of Rights shall become that number of Rights (calculated to the nearest one one-thousandth) obtained by dividing the Purchase Price
in effect immediately prior to adjustment of the Purchase Price by the Purchase Price in effect immediately after adjustment of
the Purchase Price. The Company shall make a public announcement, and notify the Rights Agent in writing, of its election to adjust
the number of Rights, indicating the record date for the adjustment, and, if known at the time, the amount of the adjustment to
be made. This record date may be the date on which the Purchase Price is adjusted or any day thereafter, but, if the Rights Certificates
have been issued, shall be at least ten (10) days later than the date of the public announcement. If Rights Certificates have been
issued, upon each adjustment of the number of Rights pursuant to this Section 11(i), the Company shall, as promptly as practicable,
cause to be distributed to holders of record of Rights Certificates on such record date Rights Certificates evidencing, subject
to Section 14 hereof, the additional Rights to which such holders shall be entitled as a result of such adjustment, or, at the
option of the Company, shall cause to be distributed to such holders of record in substitution and replacement for the Rights Certificates
held by such holders prior to the date of adjustment, and upon surrender thereof, if required by the Company, new Rights Certificates
evidencing all the Rights to which such holders shall be entitled after such adjustment. Rights Certificates so to be distributed
shall be issued, executed and delivered by the Company, and countersigned and delivered by the Rights Agent, in the manner provided
for herein (and may bear, at the option of the Company, the adjusted Purchase Price) and shall be registered in the names of the
holders of record of Rights Certificates on the record date specified in the public announcement.

 

(j) Irrespective of any adjustment or change
in the Purchase Price or the number of one one-thousandths of a Preferred Share issuable upon the exercise of the Rights, the Rights
Certificates theretofore and thereafter issued may continue to express the Purchase Price per one one-thousandth of a share and
the number of one one-thousandths of a share that were expressed in the initial Rights Certificates issued hereunder.

 

(k) Before taking any action that would cause
an adjustment reducing the Purchase Price below the then par value, if any, of the number of one one-thousandths of a Preferred
Share issuable upon exercise of the Rights, the Company shall take any corporate action that may, in the opinion of its counsel,
be necessary in order that the Company may validly and legally issue, fully paid and nonassessable, such number of one one-thousandths
of a Preferred Share at such adjusted Purchase Price.

 

    	 	25	 

     

    

 

(l) In any case in which this Section 11 shall
require that an adjustment in the Purchase Price be made effective as of a record date for a specified event, the Company may elect
to defer (and shall notify the Rights Agent in writing of any such election) until the occurrence of such event the issuance to
the registered holder of any Right exercised after such record date of the number of one one-thousandths of a Preferred Share and
other capital stock or securities of the Company, if any, issuable upon such exercise over and above the number of one one-thousandths
of a Preferred Share and other capital stock or securities of the Company, if any, issuable upon such exercise on the basis of
the Purchase Price in effect prior to such adjustment; provided, however, that the Company shall deliver
to such holder a due bill or other appropriate instrument evidencing such holder’s right to receive such additional shares
(fractional or otherwise) or securities upon the occurrence of the event requiring such adjustment.

 

(m) Anything in this Section 11 to the contrary
notwithstanding, prior to the Distribution Date, the Company shall be entitled to make such reductions in the Purchase Price, in
addition to those adjustments expressly required by this Section 11, as and to the extent that the Board, in its good faith judgment,
shall determine to be advisable in order that any (i) consolidation or subdivision of the Preferred Shares, (ii) issuance
wholly for cash of any Preferred Shares at less than the Current Market Price, (iii) issuance wholly for cash of Preferred
Shares or securities that by their terms are convertible into or exchangeable for Preferred Shares, (iv) stock dividends
or (v) issuance of rights, options or warrants referred to in this Section 11, hereafter made by the Company to registered
holders of its Preferred Shares shall not be taxable to such stockholders or shall reduce the taxes payable by such holders.

 

(n) The Company covenants and agrees that in
the event that a Section 11(a)(ii) Event occurs and the Rights shall then be outstanding, it shall not, (i) consolidate
with any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o) hereof), (ii)
merge with or into any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o)
hereof), or (iii) sell or otherwise transfer (or permit any Subsidiary to sell or otherwise transfer), in one transaction,
or a series of related transactions, assets, cash flow or earning power aggregating fifty percent (50%) or more of the assets,
cash flow or earning power of the Company and its Subsidiaries (taken as a whole and calculated on the basis of the Company’s
most recent regularly prepared financial statements) to any other Person or Persons (other than the Company or any of its Subsidiaries
in one or more transactions each of which complies with Section 11(o) hereof), if (x) at the time of or immediately after
such consolidation, merger, sale or transfer there are any charter or bylaw provisions, rights, warrants or other instruments or
securities outstanding or agreements in effect that would substantially diminish or otherwise eliminate the benefits intended to
be afforded by the Rights or (y) prior to, simultaneously with or immediately after such consolidation, merger, sale or
transfer the stockholders of the Person who constitutes, or would constitute, the “Principal Party” for purposes of
Section 13(a) hereof shall have received a distribution of Rights previously owned by such Person or any of its Related Persons;
provided, however, that this Section 11(n) shall not affect the ability of any Subsidiary of the Company
to consolidate with, merge with or into, or sell or transfer assets or earning power to, any other Subsidiary of the Company.

 

(o) The Company covenants and agrees that after
the Distribution Date and so long as any Rights shall then be outstanding (other than Rights that have become null and void pursuant
to Section 7(e) hereof), it will not, except as permitted by Section 23, Section 24, or Section 27 hereof, take (or permit any
Subsidiary to take) any action if at the time such action is taken it is reasonably foreseeable that such action will diminish
substantially or otherwise eliminate the benefits intended to be afforded by the Rights.

 

    	 	26	 

     

    

 

(p) Anything in this Agreement to the contrary
notwithstanding, in the event that the Company shall at any time after the Rights Dividend Declaration Date and prior to the Distribution
Date (i) declare or pay a dividend on the outstanding Common Stock payable in Common Shares, (ii) subdivide or split
the outstanding Common Stock, (iii) combine or consolidate the outstanding Common Stock into a smaller number of shares,
or (iv) issue any shares of its capital stock in a reclassification of Common Stock (including any such reclassification
in connection with a consolidation or merger in which the Company is a continuing or surviving corporation), the number of Rights
associated with each share of Common Stock then outstanding, or issued or delivered thereafter but prior to the Distribution Date
(or issued or delivered on or after the Distribution Date pursuant to Section 22 hereof), shall be proportionately adjusted so
that the number of Rights thereafter associated with each shares of Common Stock following any such event shall equal the result
obtained by multiplying the number of Rights associated with each shares of Common Stock immediately prior to such event by a fraction,
the numerator of which shall be the total number of shares of Common Stock outstanding immediately prior to the occurrence of the
event and the denominator of which shall be the total number of shares of Common Stock outstanding immediately following the occurrence
of such event. The adjustments provided for in this Section 11(p) shall be made successively whenever such a dividend is declared
or paid or such a subdivision, combination or reclassification is effected. If an event occurs that would require an adjustment
under Section 11(a)(ii) and this Section 11(p), the adjustments provided for in this Section 11(p) shall be in addition and prior
to any adjustment required pursuant to Section 11(a)(ii).

 

Section 12.         Certificate
of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is made as provided in Section 11 or Section 13 hereof,
the Company shall (a) promptly prepare a certificate setting forth such adjustment and a brief reasonably detailed statement
of the facts, computations and methodology accounting for such adjustment, (b) promptly file with the Rights Agent, and
with each transfer agent for the Preferred Shares and the Common Stock, a copy of such certificate and (c) if a Distribution
Date has occurred, mail a brief summary thereof to each registered holder of a Rights Certificate in accordance with Section 26
hereof. The Rights Agent shall be fully protected in relying on any such certificate and on any adjustment or statement therein
contained and shall have no duty or liability with respect to, and shall not be deemed to have knowledge of, any adjustment or
any such event unless and until it shall have received such a certificate.

 

Section 13.         Consolidation,
Merger, or Sale or Transfer of Assets, Cash Flow or Earning Power.

 

(a) In the event that, at any time after a Person
has become an Acquiring Person, directly or indirectly,

 

(i) the Company shall consolidate with, or
merge with and into, any other Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o)
hereof), and the Company shall not be the continuing or surviving corporation or other entity of such consolidation or merger;

 

    	 	27	 

     

    

 

(ii) any Person (other than a Subsidiary of
the Company in a transaction which complies with Section 11(o) hereof) shall consolidate with, or merge with or into, the Company,
and the Company shall be the continuing or surviving corporation of such consolidation or merger and, in connection with such consolidation
or merger, all or part of the outstanding Common Shares shall be changed into or exchanged for stock or other securities of any
other Person (or the Company) or cash or any other property; or

 

(iii) the Company shall sell or otherwise transfer
(or one or more of its Subsidiaries shall sell or otherwise transfer), in one transaction or a series of related transactions,
assets, cash flow or earning power aggregating fifty percent (50%) or more of the assets, cash flow or earning power of the Company
and its Subsidiaries (taken as a whole and calculated on the basis of the Company’s most recent regularly prepared financial
statements) to any Person or Persons (other than the Company or any Subsidiary of the Company in one or more transactions each
of which complies with Section 11(o) hereof);

 

then, and in each such case (except as may be
contemplated by Section 13(d) hereof), proper provision shall be made so that: (A) each registered holder of a Right, except
as provided in Section 7(e) hereof, shall thereafter have the right to receive, upon the exercise thereof at the then current Purchase
Price multiplied by the number of one one-thousandths of a share of Preferred Shares for which a Right is then exercisable in accordance
with the terms of this Agreement, such number of validly authorized and issued, fully paid, nonassessable and freely tradeable
Common Shares of the Principal Party, not subject to any liens, encumbrances, rights of first refusal, transfer restrictions, preemptive
rights or other adverse claims of any nature whatsoever, as shall be equal to the result obtained by (1) multiplying the
number of one one-thousandths of a Preferred Share for which a Right was exercisable immediately prior to the first occurrence
of a Section 11(a)(ii) Event by the Purchase Price in effect immediately prior to such first occurrence of a Section 11(a)(ii)
Event, and (2) dividing that product (which, following the first occurrence of a Section 13 Event, shall be referred to
as the “Purchase Price” for each Right and for all purposes of this Agreement) by fifty percent (50%)
of the Current Market Price per Common Share of such Principal Party on the date of consummation of such Section 13 Event; (B)
such Principal Party shall thereafter be liable for, and shall assume, by virtue of such Section 13 Event, all the obligations
and duties of the Company pursuant to this Agreement; (C) the term “Company” shall thereafter
be deemed to refer to such Principal Party, it being specifically intended that the provisions of Section 11 hereof shall apply
only to such Principal Party following the first occurrence of a Section 13 Event; (D) such Principal Party shall take such
steps (including, but not limited to, the reservation of a sufficient number of shares of Common Stock) in connection with the
consummation of any such transaction as may be necessary to assure that the provisions hereof shall thereafter be applicable, as
nearly as reasonably may be, in relation to its Common Stock thereafter deliverable upon the exercise of the Rights; provided,
however, that upon the subsequent occurrence of any merger, consolidation, sale of all or substantially all assets,
recapitalization, reclassification of shares, reorganization or other extraordinary transaction in respect of such Principal Party,
each holder of a Right shall thereupon be entitled to receive, upon exercise of a Right and payment of the Purchase Price, such
cash, shares, rights, options warrants and other property which such holder would have been entitled to receive had he, she or
it at the time of such transaction, owned the Common Stock of the Principal Party purchasable upon the exercise of a Right, and
such Principal Party shall take such steps (including, but not limited to, reservation of shares of stock) as may be necessary
to permit the subsequent exercise of the Rights in accordance with the terms hereof for such cash, shares, rights, warrants, options
and other property; and (E) the provisions of Section 11(a)(ii) hereof shall be of no effect with respect to events occurring
at any time following the first occurrence of any Section 13 Event, and the Rights that have not theretofore been exercised shall
thereafter become exercisable in the manner described in this Section 13.

 

    	 	28	 

     

    

 

(b) “Principal Party” shall
mean:

 

(i) in the case of any transaction described
in Section 13(a)(i) or Section 13(a)(ii) hereof, the Person (including the Company as successor thereto or as the surviving entity)
that is the issuer of any securities into which Common Shares of the Company are converted, changed, or exchanged in such merger
or consolidation or, if there is more than one such issuer, the issuer of Common Shares of such issuer that has the highest aggregate
current market price (determined pursuant to Section 11(d) hereof) and if no securities or other equity interests are so issued,
the Person (including the Company as successor thereto or as the surviving entity) that is the other party to such merger or consolidation,
or, if there is more than one such Person, the Person that is a constituent party to such merger or consolidation, the Common Shares
of such Person of which has the highest aggregate current market price (determined pursuant to Section 11(d) hereof); and

 

(ii) in the case of any transaction described
in Section 13(a)(iii) hereof, the Person that is the party receiving the greatest portion of the assets, cash flow or earning power
transferred pursuant to such transaction or transactions, or if each Person that is a party to such transaction or transactions
receives the same portion of the assets, cash flow or earning power transferred pursuant to such transaction or transactions, or
if the Person receiving the largest portion of the assets, cash flow or earning power cannot be determined, whichever of such Persons
is the issuer of Common Shares having the greatest aggregate value of shares outstanding (as determined pursuant to Section 11(d)
hereof); provided, however, that in any such case, (A) if the Common Stock of such Person (who,
but for this proviso, would be the Principal Party) are not at such time and have not been continuously over the preceding twelve
(12) month period registered under Section 12 of the Exchange Act, and such Person is a direct or indirect Subsidiary of another
Person the Common Stock of which is and has been so registered, “Principal Party” shall refer to such other Person;
and (B) in case such Person is a Subsidiary, directly or indirectly, of more than one Person, the Common Stock of two or
more of which are and have been so registered, “Principal Party” shall refer to whichever of such Persons is the issuer
of the Common Stock having the greatest aggregate market value.

 

(c) The Company shall not consummate a Section
13 Event unless the Principal Party shall have a sufficient number of authorized shares of Common Stock that have not been issued
or reserved or that are held in treasury for issuance to permit the exercise in full of the Rights in accordance with this Section
13 and unless prior thereto the Company and such Principal Party shall have executed and delivered to the Rights Agent a supplemental
agreement confirming that the requirements of Section 13(a) and Section 13(b) hereof shall promptly be performed in accordance
with their terms and further providing that, as soon as practicable after the date of any such Section 13 Event, the Principal
Party, as soon as practicable after the execution of such agreement, will:

 

(i) prepare and file a registration statement
under the Act, with respect to the Rights and the securities purchasable upon exercise of the Rights on an appropriate form, and
will use its best efforts to cause such registration statement to (A) become effective as soon as practicable after such
filing and (B) remain effective (with a prospectus at all times meeting the requirements of the Act) until the Expiration
Date;

 

    	 	29	 

     

    

 

(ii) take all such other action as may be necessary
to enable the Principal Party to issue the securities purchasable upon exercise of the Rights, including, but not limited to, the
registration or qualification of such securities under all requisite securities laws of jurisdictions of the various states and
the listing of such securities on such exchanges and trading markets as may be necessary or appropriate; and

 

(iii) deliver to registered holders of the
Rights historical financial statements for the Principal Party and each of its Affiliates that comply in all respects with the
requirements for registration on Form 10 (or any successor form) under the Exchange Act.

 

(d) The provisions of this Section 13 shall
similarly apply to successive mergers or consolidations or sales or other transfers. In the event that a Section 13 Event shall
occur at any time after the occurrence of a Section 11(a)(ii) Event, the Rights that have not theretofore been exercised shall
thereafter become exercisable in the manner described in Section 13(a) hereof.

 

(e) In case the Principal Party that is to be
a party to a transaction referred to in this Section 13 has at the time of such transaction, or immediately following such transaction
will have, a provision in any of its authorized securities or in its certificate of incorporation or bylaws or other instrument
governing its affairs, or any other agreements or arrangements, which provision would have the effect of (i) causing such
Principal Party to issue, in connection with, or as a consequence of, the consummation of a transaction referred to in this Section
13, shares of Common Stock of such Principal Party at less than such then current market price (other than to holders of Rights
pursuant to this Section 13); (ii) providing for any special payment, tax, or similar provisions in connection with the
issuance of the Common Shares of such Principal Party pursuant to the provisions of Section 13; or (iii) otherwise eliminating
or substantially diminishing the benefits intended to be afforded by the Rights in connection with, or as a consequence of, the
consummation of a transaction referred to in this Section 13; then, in such event, the Company shall not consummate any such transaction
unless prior thereto the Company and such Principal Party shall have executed and delivered to the Rights Agent a supplemental
agreement providing that the provision in question of such Principal Party shall have been cancelled, waived, or amended, or that
the authorized securities shall be redeemed, so that the applicable provision will have no effect in connection with, or as a consequence
of, the consummation of the proposed transaction.

 

Section 14.         Fractional
Rights and Fractional Shares.

 

(a) The Company shall not be required to issue
fractions of Rights, except prior to the Distribution Date as provided in Section 11(p) hereof, or to distribute Rights Certificates
that evidence fractional Rights. In lieu of such fractional Rights, the Company shall pay to the registered holders of the Rights
Certificates with regard to which such fractional Rights would otherwise be issuable, an amount in cash equal to the same fraction
of the current market price of a whole Right. For purposes of this Section 14(a), the current market price of a whole Right shall
be the Closing Price of the Rights for the Trading Day immediately prior to the date on which such fractional Rights would have
been otherwise issuable. The Closing Price of the Rights for any Trading Day shall be the last sale price, regular way, or, in
case no such sale takes place on such day, the average of the closing bid and asked prices, regular way, in either case as reported
in the principal consolidated transaction reporting system with respect to securities listed or admitted to trading on NASDAQ or,
if the Rights are not listed or admitted to trading on NASDAQ, as reported in the principal consolidated transaction reporting
system with respect to securities listed or admitted to trading on the principal national securities exchange on which the Rights
are listed or admitted to trading, or if the Rights are not listed or admitted to trading on any national securities exchange,
the last quoted price or, if not so quoted, the average of the high bid and low asked prices in the over-the-counter market, as
reported by a quotation system then in use or, if on any such date the Rights are not so quoted, the average of the closing bid
and asked prices as furnished by a professional market maker making a market in the Rights, selected by the Board. If on any such
date the Rights are not publicly held and are not so listed, admitted to trading, or quoted, and no market maker is making a market
in the Rights, the current market value of a Right shall mean the fair value of a Right on such date as determined in good faith
by the Board, which determination shall be described in a statement filed with the Rights Agent and delivered to the holders of
the Rights and shall be binding and conclusive for all purposes.

 

    	 	30	 

     

    

 

(b) The Company shall not be required to issue
fractions of Preferred Shares (other than fractions that are integral multiples of one one-thousandth of a Preferred Share) upon
exercise of the Rights or to distribute certificates or make any entries in the book entry account system of the transfer agent
that evidence fractional Preferred Shares (other than fractions that are integral multiples of one one-thousandth of a Preferred
Share). In lieu of fractional Preferred Shares that are not integral multiples of one one-thousandth of a Preferred Share, the
Company may pay to the registered holders of Rights Certificates at the time such Rights are exercised as herein provided an amount
in cash equal to the same fraction of the current market price of one one-thousandth of a Preferred Share. For purposes of this
Section 14(b), the current market price of one one-thousandth of a Preferred Share shall be one one-thousandth of the Closing Price
of a Preferred Share or, if unavailable, the appropriate alternative price (in each case, as determined pursuant to Section 11(d)(ii)
hereof) for the Trading Day immediately prior to the date of such exercise.

 

(c) Following the occurrence of a Triggering
Event, the Company shall not be required to issue fractions of shares of Common Stock upon exercise of the Rights or to distribute
certificates or Ownership Statements that evidence fractional shares of Common Stock. In lieu of fractional shares of Common Stock,
the Company may pay to the registered holders of Rights Certificates at the time such Rights are exercised as herein provided an
amount in cash equal to the same fraction of the current market value of one shares of Common Stock. For purposes of this Section
14(c), the current market value of one share of Common Stock shall be the Closing Price of one share of Common Stock or, if unavailable,
the appropriate alternative price (in each case, as determined pursuant to Section 11(d)(i) hereof) on the Trading Day immediately
prior to the date of such exercise.

 

(d) The registered holder of a Right by the
acceptance of that Right expressly waives such holder’s right to receive any fractional Rights or any fractional shares upon
exercise of a Right, except as permitted by this Section 14.

 

(e) Whenever a payment for fractional Rights
or fractional shares is to be made by the Rights Agent under this Agreement, the Company shall (i) promptly prepare and
deliver to the Rights Agent a certificate setting forth in reasonable detail the facts related to such payments and the prices
and formulas utilized in calculating such payments; and (ii) provide sufficient funds to the Rights Agent in the form of
fully collected funds to make such payments. The Rights Agent shall be fully protected in relying upon such a certificate and has
no duty with respect to, and will not be deemed to have knowledge of, any payment for fractional Rights or fractional shares under
any Section of this Agreement relating to the payment of fractional Rights or fractional shares unless and until the Rights Agent
has received such a certificate and sufficient monies.

 

    	 	31	 

     

    

 

Section 15.         Rights
of Action. All rights of action in respect of this Agreement, excepting the rights of action given to the Rights Agent hereunder,
are vested in the respective registered holders of the Rights Certificates (and, prior to the Distribution Date, of the Common
Stock); and any registered holder of any Rights Certificate (and, prior to the Distribution Date, of the Common Stock), without
the consent of the Rights Agent or of the registered holder of any other Rights Certificate (or, prior to the Distribution Date,
of the Common Stock), may, on such holder’s own behalf and for such holder’s own benefit, enforce, and may institute
and maintain any suit, action or proceeding against the Company to enforce, or otherwise act in respect of, such holder’s
right to exercise the Rights evidenced by such Rights Certificate in the manner provided in such Rights Certificate and in this
Agreement. Without limiting the foregoing or any remedies available to the registered holders of Rights, it is specifically acknowledged
that the registered holders of Rights would not have an adequate remedy at law for any breach of this Agreement by the Company
and shall be entitled to specific performance of the obligations hereunder and injunctive relief against actual or threatened violations
of the obligations hereunder by the Company of any Person subject to this Agreement.

 

Section 16.         Agreement
of Rights Holders. Every registered holder of a Right, by accepting the same, consents and agrees with the Company and the
Rights Agent and with every other registered holder of a Right that:

 

(a) prior to the Distribution Date, the Rights
shall be evidenced by the balances indicated in Ownership Statements in the names of the holders of Common Stock (which Common
Stock shall also be deemed to represent certificates for Rights) or, in the case of certificated shares, the certificates for the
Common Stock registered in the names of the holders of the Common Stock (which certificates for shares of Common Stock also constitute
certificates for Rights) and each Right will be transferable only in connection with the transfer of shares of Common Stock;

 

(b) after the Distribution Date, the Rights
Certificates are transferable only on the registry books of the Rights Agent if surrendered at the office or offices of the Rights
Agent designated for such purposes, duly endorsed or accompanied by a proper instrument of transfer and with the appropriate forms
and certificates contained therein properly completed and duly executed;

 

(c) subject to Section 6(a) and Section 7(f)
hereof, the Company and the Rights Agent may deem and treat the Person in whose name a Rights Certificate (or, prior to the Distribution
Date, a Common Stock certificate or Ownership Statement) is registered as the absolute owner thereof and of the Rights evidenced
thereby (notwithstanding any notations of ownership or writing on the Rights Certificates or the Common Stock certificate or Ownership
Statement made by anyone other than the Company or the Rights Agent) for all purposes whatsoever, and neither the Company nor the
Rights Agent, subject to the last sentence of Section 7(e) hereof, shall be required to be affected by any notice to the contrary;
and

 

    	 	32	 

     

    

 

(d) notwithstanding anything in this Agreement
to the contrary, neither the Company nor the Rights Agent shall have any liability to any registered holder of a Right or other
Person as a result of its inability to perform any of its obligations under this Agreement by reason of any preliminary or permanent
injunction or other order, decree, judgment or ruling (whether interlocutory or final) issued by a court of competent jurisdiction
or by a governmental, regulatory or administrative agency or commission, or any statute, rule, regulation or executive order promulgated
or enacted by any governmental authority, prohibiting or otherwise restraining performance of such obligation; provided,
however, that the Company must use its best efforts to have any such injunction, order, decree, judgment or ruling
lifted or otherwise overturned as soon as possible.

 

Section 17.         Rights
Certificate Holder Not Deemed a Stockholder. No registered holder, as such, of any Rights Certificate shall be entitled to
vote, receive dividends or be deemed for any purpose the registered holder of the number of one one-thousandths of a Preferred
Share or any other securities of the Company that may at any time be issuable on the exercise of the Rights evidenced thereby,
nor shall anything contained herein or in any Rights Certificate be construed to confer upon the registered holder of any Rights
Certificate, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon
any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action, or to receive
notice of meetings or other actions affecting stockholders (except as provided in Section 25 hereof), or to receive dividends or
subscription rights, or otherwise, until the Right or Rights evidenced by such Rights Certificate shall have been exercised in
accordance with the provisions hereof.

 

Section 18.         Concerning
the Rights Agent.

 

(a) The Company agrees to pay to the Rights
Agent reasonable compensation for all services rendered by it hereunder and, from time to time, on demand of the Rights Agent,
reimbursement for its reasonable expenses and counsel fees and disbursements and other disbursements incurred in the preparation,
delivery, amendment, administration and execution of this Agreement and the exercise and performance of its duties hereunder. The
Company also agrees to indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, damage, judgment,
fine, penalty, claim, demand, settlement, cost, or expense, incurred without gross negligence, bad faith or willful misconduct
(each as determined by a final non-appealable judgment of a court of competent jurisdiction) on the part of the Rights Agent, for
any action taken, suffered or omitted by the Rights Agent in connection with the acceptance, administration, exercise and performance
of its duties under this Agreement, including reasonable attorneys’ fees and expenses and the costs and expenses of defending
against any claim of liability in the premises. The costs and expenses incurred in enforcing this right of indemnification shall
be paid by the Company.

 

(b) The Rights Agent may conclusively rely upon
and shall be protected and shall incur no liability for or in respect of any action taken, suffered or omitted to be taken by it
in connection with its acceptance and administration of this Agreement or the exercise or performance of its duties hereunder in
reliance upon any Rights Certificate or certificate for Common Shares or for other securities of the Company or an Ownership Statement,
instrument of assignment or transfer, power of attorney, endorsement, affidavit, letter, notice, direction, consent, certificate,
statement, or other paper or document believed by it to be genuine and to have been signed, executed and, where necessary, verified
or acknowledged, by the proper Person or Persons, or otherwise upon the advice of counsel as set forth herein. The Rights Agent
shall not be deemed to have knowledge of any event of which it was supposed to receive notice thereof hereunder, and the Rights
Agent shall be fully protected and shall incur no liability for failing to take any action in connection therewith, unless and
until it has received such notice.

 

    	 	33	 

     

    

 

(c) The provisions of this Section 18, Section
20 and Section 29 hereof shall survive the termination or expiration of this Agreement, the exercise or expiration of the Rights
and the resignation, replacement or removal of the Rights Agent

 

Section 19.         Merger
or Consolidation or Change of Name of the Rights Agent.

 

(a) Any Person into which the Rights Agent or
any successor Rights Agent may be merged or with which it may be consolidated, or any Person resulting from any merger or consolidation
to which the Rights Agent or any successor Rights Agent shall be a party, or any Person succeeding to the corporate trust, stock
transfer or other stockholder services business of the Rights Agent or any successor Rights Agent, shall be the successor to the
Rights Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties
hereto; but only if such Person would be eligible for appointment as a successor Rights Agent under the provisions of Section 21
hereof. In case at the time such successor Rights Agent shall succeed to the agency created by this Agreement, any of the Rights
Certificates shall have been countersigned but not delivered, any such successor Rights Agent may adopt the countersignature of
an authorized signatory of a predecessor Rights Agent and deliver such Rights Certificates so countersigned; and in case at that
time any of the Rights Certificates shall not have been countersigned, an authorized signatory of any successor Rights Agent may
countersign such Rights Certificates either in the name of the predecessor or in the name of the successor Rights Agent; and in
all such cases such Rights Certificates shall have the full force provided in the Rights Certificates and in this Agreement.

 

(b) In case at any time the name of the Rights
Agent shall be changed and at such time any of the Rights Certificates shall have been countersigned but not delivered, the Rights
Agent may adopt the countersignature of an authorized signatory under the Rights Agent’s prior name and deliver Rights Certificates
so countersigned; and in case at that time any of the Rights Certificates shall not have been countersigned, an authorized signatory
of the Rights Agent may countersign such Rights Certificates either in the prior name of the Rights Agent or in the changed name
of the Rights Agent; and in all such cases such Rights Certificates shall have the full force provided in the Rights Certificates
and in this Agreement.

 

Section 20.         Duties
of the Rights Agent. The Rights Agent undertakes to perform only the duties and obligations expressly imposed by this Agreement
(and no implied duties or obligations) upon the following terms and conditions, by all of which the Company and the registered
holders of Rights Certificates, by their acceptance thereof, shall be bound:

 

(a) The Rights Agent may consult with legal
counsel (who may be legal counsel for the Company or an employee of the Rights Agent), and the advice or opinion of such counsel
shall be full and complete authorization and protection to the Rights Agent and the Rights Agent shall incur no liability for or
in respect of any action taken, suffered or omitted to be taken by it in the absence of bad faith, gross negligence or willful
misconduct (which bad faith, gross negligence, or willful misconduct must be determined by a final, non-appealable judgment of
a court of competent jurisdiction) and in accordance with such advice or opinion.

 

    	 	34	 

     

    

 

(b) Whenever in the performance of its duties
under this Agreement the Rights Agent shall deem it necessary or desirable that any fact or matter (including, without limitation,
the identity of any Acquiring Person and the determination of Current Market Price) be proved or established by the Company prior
to the Rights Agent taking or suffering or omitting to take any action hereunder, such fact or matter (unless other evidence in
respect thereof be herein specifically prescribed) may be deemed to be conclusively proved and established by a certificate signed
by the Chairman of the Board, the Chief Executive Officer, the Chief Financial Officer, the President, any Vice President, the
Secretary, any Assistant Secretary, the Treasurer or any Assistant Treasurer of the Company and delivered to the Rights Agent;
and such certificate shall be full and complete authorization and protection to the Rights Agent, and the Rights Agent shall incur
no liability, for or in respect of any action taken or suffered or omitted to be taken by it in the absence of bad faith, gross
negligence or willful misconduct (which bad faith, gross negligence, or willful misconduct must be determined by a final, non-appealable
judgment of a court of competent jurisdiction) under the provisions of this Agreement in reliance upon such certificate.

 

(c) The Rights Agent shall be liable hereunder
only for its own gross negligence, bad faith or willful misconduct (which gross negligence, bad faith or willful misconduct must
be determined by a final, non-appealable judgment of a court of competent jurisdiction). Notwithstanding anything in this Agreement
to the contrary, in no event will the Rights Agent be liable for special, punitive, indirect, incidental or consequential loss
or damage of any kind whatsoever (including, but not limited to, lost profits), even if the Rights Agent has been advised of the
likelihood of such loss or damage and regardless of the form of action. Any liability of the Rights Agent under this Agreement
will be limited to the amount of annual fees paid by the Company to the Rights Agent.

 

(d) The Rights Agent shall not be liable for
or by reason of any of the statements of fact or recitals contained in this Agreement or in the Rights Certificates and it shall
not be required to verify the same (except as to a countersignature by one of its authorized signatories on such Rights Certificates),
but all such statements and recitals are and shall be deemed to have been made by the Company only.

 

(e) The Rights Agent shall not have any liability
for or be under any responsibility in respect of the validity of this Agreement or the execution and delivery hereof (except the
due execution and delivery hereof by the Rights Agent) or in respect of the validity or execution of any Rights Certificate (except
a countersignature by one of its authorized signatories on any such Rights Certificate); nor shall it be responsible for any breach
by the Company of any covenant or failure by the Company to satisfy any condition contained in this Agreement or in any Rights
Certificate; nor shall it be responsible for any change in the exercisability of the Rights (including the Rights becoming null
and void pursuant to Section 7(e) hereof) or any adjustment required under the provisions of Section 11, Section 13, Section 23
or Section 24 hereof or responsible for the manner, method or amount of any such change or adjustment or the ascertaining of the
existence of facts that would require any such change or adjustment (except with respect to the exercise of Rights evidenced by
Rights Certificates after receipt by the Rights Agent of a certificate describing any such adjustment, delivered pursuant to Section
12); nor shall it by any act hereunder be deemed to make any representation or warranty as to the authorization or reservation
of any Common Stock or Preferred Shares or any other securities to be issued pursuant to this Agreement or any Rights Certificate
or as to whether any shares of Common Stock or Preferred Shares will, when so issued, be validly authorized and issued, fully paid
and nonassessable.

 

    	 	35	 

     

    

 

(f) The Company agrees that it will perform,
execute, acknowledge, and deliver or cause to be performed, executed, acknowledged and delivered all such further and other acts,
instruments, and assurances as may reasonably be required by the Rights Agent for the carrying out or performing by the Rights
Agent of the provisions of this Agreement.

 

(g) The Rights Agent is hereby authorized and
directed to accept instructions with respect to the performance of its duties hereunder from the Chairman of the Board, the Chief
Executive Officer, the President, the Chief Financial Officer, any Vice President, the Secretary, any Assistant Secretary, the
Treasurer or any Assistant Treasurer of the Company, and to apply to such officers for advice or instructions in connection with
its duties, and such instructions shall be full authorization and protection to the Rights Agent and the Rights Agent shall not
be liable for any action taken, suffered, or omitted to be taken by it in the absence of bad faith, gross negligence and willful
misconduct (which bad faith, gross negligence, or willful misconduct must be determined by a final, non-appealable judgment of
a court of competent jurisdiction) in accordance with instructions of any such officer or for any delay in acting while waiting
for those instructions. The Rights Agent shall be fully authorized and protected in relying upon the most recent instructions received
by any such officer.

 

(h) The Rights Agent and any stockholder, Affiliate,
director, officer or employee of the Rights Agent may buy, sell, or deal in any of the Rights or other securities of the Company
or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the
Company or otherwise act as fully and freely as though it were not the Rights Agent under this Agreement. Nothing herein shall
preclude the Rights Agent or any such stockholder, Affiliate, director, officer or employee from acting in any other capacity for
the Company or for any other Person.

 

(i) The Rights Agent may execute and exercise
any of the rights or powers hereby vested in it or perform any duty hereunder either itself (through its directors, officers, and
employees) or by or through its attorneys or agents, and the Rights Agent shall not be answerable or accountable for any act, default,
neglect or misconduct of any such attorneys or agents or for any loss to the Company or any other Person resulting from any such
act, default, neglect, or misconduct, absent gross negligence, bad faith, or willful misconduct (which gross negligence, bad faith
or willful misconduct must be determined by a final, non-appealable judgment of a court of competent jurisdiction) of the Rights
Agent in the selection and continued employment thereof.

 

(j) No provision of this Agreement shall require
the Rights Agent to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties
hereunder (other than internal costs incurred by the Rights Agent in providing services to the Company in the ordinary course of
its business as Rights Agent) or in the exercise of any of its rights or powers if there shall be reasonable grounds for believing
that repayment of such funds or adequate indemnification against such risk or liability is not reasonably assured to it.

 

(k) If, with respect to any Rights Certificate
surrendered to the Rights Agent for exercise or transfer, the certificate contained in the form of assignment or form of election
to purchase, as the case may be, has either not been properly completed or duly executed or indicates an affirmative response to
clause 1 or 2 thereof, the Rights Agent shall not take any further action with respect to such requested exercise or transfer without
first consulting with the Company.

 

    	 	36	 

     

    

 

Section 21.         Change
of the Rights Agent. The Rights Agent or any successor Rights Agent may resign and be discharged from its duties under this
Agreement upon thirty (30) days’ prior written notice given to the Company (or such lesser notice as is acceptable to the
Company in its sole discretion) in accordance with Section 26 hereof, and to the extent that the Rights Agent or one of its Affiliates
is not also the transfer agent for the Company, to each transfer agent of the Common Stock and Preferred Shares by registered or
certified mail. In the event the transfer agency relationship in effect between the Company and the Rights Agent terminates, the
Rights Agent will be deemed to have resigned automatically and be discharged from its duties under this Agreement as of the effective
date of such termination, and the Company shall be responsible for sending any required notice. The Company may remove the Rights
Agent or any successor Rights Agent upon thirty (30) days’ notice given to the Rights Agent or successor Rights Agent, as
the case may be, in accordance with Section 26 hereof, and to each transfer agent of the Common Stock and Preferred Shares by registered
or certified mail, and, if such removal occurs after the Distribution Date, to the registered holders of the Rights Certificates
in accordance with Section 26 hereof. If the Rights Agent shall resign or be removed or shall otherwise become incapable of acting,
the Company shall appoint a successor to the Rights Agent. If the Company shall fail to make such appointment within a period of
thirty (30) days after giving proper notice of such removal or after it has been properly notified of such resignation or incapacity
by the resigning or incapacitated Rights Agent or by the registered holder of a Rights Certificate (who shall, with such notice,
submit such holder’s Rights Certificate for inspection by the Company), then any registered holder of any Rights Certificate
may apply to any court of competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent, whether
appointed by the Company or by such a court, shall be (a) a legal business entity organized and doing business under the
laws of the United States or of any State thereof, in good standing, which is authorized under such laws to exercise stockholder
services powers and which has at the time of its appointment as Rights Agent a combined capital and surplus of at least $100,000,000
or (b) an Affiliate of a legal business entity described in clause (a) of this sentence. After appointment, the successor
Rights Agent shall be vested with the same powers, rights, duties, and responsibilities as if it had been originally named as Rights
Agent without further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor Rights Agent any
property at the time held by it hereunder, and execute and deliver any further assurance, conveyance, act or deed necessary for
that purpose. Not later than the effective date of any such appointment, the Company shall file notice thereof in writing with
the predecessor Rights Agent and each transfer agent of the Common Stock and the Preferred Shares, and, if such appointment occurs
after the Distribution Date, give notice thereof to the registered holders of the Rights Certificates in accordance with Section
26 hereof. Failure to give any notice provided for in this Section 21, however, or any defect therein, shall not
affect the legality or validity of the resignation or removal of the Rights Agent or the appointment of the successor Rights Agent,
as the case may be.

 

Section 22.         Issuance
of New Rights Certificates. Notwithstanding any of the provisions of this Agreement or of the Rights to the contrary, the Company
may, at its option, issue new Rights Certificates evidencing Rights in such form as may be approved by the Board to reflect any
adjustment or change in the Purchase Price and the number or kind or class of shares or other securities or property purchasable
under the Rights Certificates made in accordance with the provisions of this Agreement. In addition, in connection with the issuance
or sale of Common Shares following the Distribution Date and prior to the Expiration Date, the Company (a) shall, with respect
to Common Stock so issued or sold pursuant to the exercise of stock options or under any employee plan or arrangement, granted
or awarded as of the Distribution Date, or upon the exercise, conversion, or exchange of securities hereinafter issued by the Company,
and (b) may, in any other case, if deemed necessary or appropriate by the Board, issue Rights Certificates evidencing the
appropriate number of Rights in connection with such issuance or sale; provided, however, that (i)
no such Rights Certificate shall be issued if, and to the extent that, the Company shall be advised by counsel that such issuance
would create a significant risk of material adverse tax consequences to the Company or the Person to whom such Rights Certificate
would be issued, and (ii) no such Rights Certificate shall be issued if, and to the extent that, appropriate adjustment
shall otherwise have been made in lieu of the issuance thereof.

 

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Section 23.         Redemption
and Termination.

 

(a) The Board may, at its option, at any time
prior to the earlier of (i) the Close of Business on the tenth (10th) Business Day following the Shares Acquisition Date
(or, if the tenth (10th) Business Day following the Shares Acquisition Date occurs before the Record Date, the Close of Business
on the Record Date) and (ii) the Final Expiration Date (the “Redemption Period”), direct the Company
to, and if directed the Company shall, redeem all but not less than all of the then outstanding Rights at a redemption price of
$0.0001 per Right, as such amount may be appropriately adjusted to reflect any stock split, stock dividend, or similar transaction
occurring after the date hereof (such redemption price, as adjusted, being hereinafter referred to as the “Redemption
Price”). Notwithstanding anything contained in this Agreement to the contrary, the Rights shall not be exercisable
after the first occurrence of a Section 11(a)(ii) Event until such time as the right of redemption hereunder has expired. The Company
may, at its option, pay the Redemption Price in cash, Common Stock (based on the Current Market Price of the Common Stock at the
time of redemption) or any other form of consideration deemed appropriate by the Board.

 

(b) Immediately upon the action of the Board
directing the Company to redeem the Rights, evidence of which shall have been filed with the Rights Agent and without any further
action and without any notice, the right to exercise the Rights will terminate and the only right thereafter of the registered
holders of Rights shall be to receive the Redemption Price for each Right so held. Promptly after the action of the Board directing
the Company to make the redemption of the Rights, the Company shall give notice of such redemption to the Rights Agent and the
registered holders of the then outstanding Rights in accordance with Section 26 hereof. Any notice given in accordance with Section
26 hereof shall be deemed given whether or not the holder receives the notice. Each such notice of redemption will state the method
by which the payment of the Redemption Price will be made. Neither the Company nor any of its Affiliates or Associates may redeem,
acquire, or purchase for value any Rights at any time in any manner other than specifically set forth in this Section 23 or in
Section 24 hereof, or other than in connection with the purchase of Common Shares or the conversion or redemption of Common Stock
in accordance with the applicable provisions of the Company’s Certificate of Incorporation prior to the Distribution Date.

 

    	 	38	 

     

    

 

Section 24.         Exchange
of Rights.

 

(a) The Board may, at its option, at any time
after the occurrence of a Section 11(a)(ii) Event, direct the Company to, and if directed the Company shall, exchange all or part
of the then outstanding and exercisable Rights (which shall not include Rights that have become null and void pursuant to the provisions
of Section 7(e) hereof) for Common Stock at an exchange ratio of one share of Common Stock per Right, appropriately adjusted to
reflect any stock split, stock dividend or similar transaction occurring after the date hereof (such exchange ratio being hereinafter
referred to as the “Exchange Ratio”). The exchange of the Rights by the Board may be made effective at
such time, on such basis, and with such conditions as the Board in its sole discretion may establish. Notwithstanding the foregoing,
the Board shall not be empowered to direct the Company to effect such exchange at any time after any Person (other than an Exempt
Person), together with all Related Persons of such Person, becomes the Beneficial Owner of fifty percent (50%) or more of the Common
Stock then outstanding.

 

(b) Immediately upon the action of the Board
directing the Company to exchange any Rights pursuant to Section 24(a) hereof and without any further action and without any notice,
the right to exercise such Rights shall terminate and the only right thereafter of a registered holder of such Rights shall be
to receive that number of shares of Common Stock equal to the number of such Rights held by such holder multiplied by the Exchange
Ratio. The Company shall promptly give public notice of any such exchange (with prompt written notice thereof to the Rights Agent);
provided, however, that the failure to give, or any defect in, such notice shall not affect the validity
of such exchange. The Company promptly shall give notice of any such exchange to all of the registered holders of such Rights in
accordance with Section 26 hereof. Any notice given in accordance with Section 26 hereof shall be deemed given whether or not the
holder receives the notice. Each such notice of exchange will state the method by which the exchange of the Common Stock for Rights
will be effected and, in the event of any partial exchange, the number of Rights that will be exchanged. Any partial exchange shall
be effected pro rata based on the number of Rights (other than Rights that have become null and void pursuant to the provisions
of Section 7(e) hereof) held by each registered holder of Rights.

 

(c) In any exchange pursuant to this Section
24, the Company, at its option, may substitute Preferred Shares (or Equivalent Preferred Shares) for Common Stock exchangeable
for Rights, at the initial rate of one one-thousandth of a Preferred Share (or Equivalent Preferred Shares) for each share of Common
Stock, as appropriately adjusted to reflect stock splits, stock dividends, and other similar transactions after the date hereof.

 

(d) In the event the number of shares of Common
Stock authorized by the Certificate of Incorporation, but which are not outstanding or reserved for issuance for purposes other
than upon exercise of the Rights, is not sufficient to permit any exchange of Rights as contemplated in accordance with this Section
24, the Company may either take such action as may be necessary to authorize additional shares of Common Stock for issuance upon
exchange of the Rights or alternatively, at the option of the Board, substitute to the extent of such insufficiency for each share
of Common Stock that would otherwise be issuable upon exchange of a Right, cash, debt securities of the Company, other assets,
or any combination of the foregoing, in any event having an aggregate value, as determined in good faith by the Board (whose determination
shall be described in a statement filed with the Rights Agent and shall be binding and conclusive for all purposes on the Rights
Agent and the holders of the Rights), equal to the Current Market Price per share of Common Stock (as determined pursuant to Section
11(d)(i)) for the Trading Day immediately prior to the date of exchange pursuant to this Section 24.

 

    	 	39	 

     

    

 

(e) The Company shall not be required to issue
fractions of shares of Common Stock or to distribute certificates or Ownership Statements that evidence fractional shares of Common
Stock . In lieu of such fractional shares of Common Stock, there shall be paid to the registered holders of the Rights Certificates
with regard to which such fractional shares of Common Stock would otherwise be issuable, an amount in cash equal to the same fraction
of the current market price of a whole share of Common Stock. For the purposes of this Section 24(e), the current market price
of a whole share of Common Stock shall be the Closing Price of a share of Common Stock (as determined pursuant to the second sentence
of Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of exchange pursuant to this Section 24.

 

(f) Notwithstanding anything in this Section
24 to the contrary, the exchange of the Rights may be made effective at such time, on such basis and with such conditions as the
Board in its sole discretion may establish. Without limiting the preceding sentence, the Board may (i) in lieu of issuing
shares of Common Stock or any other securities contemplated by this Section 24 to the Persons entitled thereto in connection with
the exchange (such Persons, the “Exchange Recipients,” and such shares and other securities, together
with any dividends or distributions made on such shares or other securities, the “Exchange Property”)
issue, transfer or deposit the Exchange Property to or into a trust or other entity that may hold such Exchange Property for the
benefit of the Exchange Recipients (provided that such trust or other entity may not be controlled by the Company or any of its
Related Persons and provided further that the trustee or similar fiduciary of the trust or other entity will attempt to distribute
the Exchange Property to the Exchange Recipients as promptly as practicable), (ii) permit such trust or other entity to
exercise all of the rights that a stockholder of record would possess with respect to any shares deposited in such trust or entity
and (iii) impose such procedures as are necessary to verify that the Exchange Recipients are not Acquiring Persons or Related
Persons of Acquiring Persons as of any time periods established by such trust or entity.

 

Section 25.         Notice
of Certain Events.

 

(a) In case the Company shall propose, at any
time after the Distribution Date, (i) to pay any dividend payable in stock of any class to the registered holders of Preferred
Shares or to make any other distribution to the registered holders of Preferred Shares (other than a regular periodic cash dividend
out of earnings or retained earnings of the Company), or (ii) to offer to the registered holders of Preferred Shares rights
or warrants to subscribe for or to purchase any additional Preferred Shares or shares of stock of any class or any other securities,
rights or options, or (iii) to effect any reclassification of its Preferred Shares (other than a reclassification involving
only the subdivision of outstanding Preferred Shares), or (iv) to effect any consolidation or merger into or with any other
Person (other than a Subsidiary of the Company in a transaction which complies with Section 11(o)), or to effect any sale or other
transfer (or to permit one or more of its Subsidiaries to effect any sale or other transfer), in one transaction or a series of
related transactions, of fifty percent (50%) or more of the assets, cash flow or earning power of the Company and its Subsidiaries
(taken as a whole and calculated on the basis of the Company’s most recent regularly prepared financial statements) to any
other Person or Persons (other than the Company and/or any of its Subsidiaries in one or more transactions each of which complies
with Section 11(o) hereof), or (v) to effect the liquidation, dissolution, or winding up of the Company, then, in each such
case, the Company shall give to each registered holder of a Rights Certificate, to the extent feasible and in accordance with Section
26 hereof, a notice of such proposed action, which shall specify the record date for the purposes of such stock dividend, distribution
of rights or warrants, or the date on which such reclassification, consolidation, merger, sale, transfer, liquidation, dissolution,
or winding up is to take place and the date of participation therein by the registered holders of the Preferred Shares, if any
such date is to be fixed, and such notice shall be so given in the case of any action covered by clause (i) or (ii) above at least
twenty (20) days prior to the record date for determining registered holders of the Preferred Shares for purposes of such action,
and in the case of any such other action, at least twenty (20) days prior to the date of the taking of such proposed action or
the date of participation therein by the registered holders of the Preferred Shares, whichever shall be the earlier; provided,
however, that no such action shall be taken pursuant to this Section 25(a) that will or would conflict with any provision
of the Company’s Certificate of Incorporation; provided, further, that no such notice shall be
required pursuant to this Section 25, if any Subsidiary of the Company effects a consolidation or merger with or into, or effects
a sale or other transfer of assets or earning power to, any other Subsidiary of the Company.

 

    	 	40	 

     

    

 

(b) In case a Section 11(a)(ii) Event shall
occur, then, in any such case, (i) the Company shall as soon as practicable thereafter give to the Rights Agent, and, to
the extent feasible, each registered holder of a Rights Certificate, to the extent feasible and in accordance with Section 26 hereof,
a notice of the occurrence of such event, which shall specify the event and the consequences of the event to registered holders
of Rights under Section 11(a)(ii) hereof, and (ii) all references in Section 25(a) to Preferred Shares shall be deemed thereafter
to refer to Common Stock or, if appropriate, other securities.

 

Notwithstanding anything to the contrary that
may be contained in this Section 25 or elsewhere in this Agreement, the failure to give, or any defect in, any notice required
to be given pursuant to this Section 25 shall not affect the legality or validity of the transaction or event to which the notice
requirement was applicable.

 

In case any Section 13 Event shall occur, then
the Company shall, as soon as practicable thereafter, give to each registered holder of a Rights Certificate, to the extent feasible,
and to the Rights Agent in accordance with Section 26 hereof, a written notice of the occurrence of such event, which notice shall
describe such event and the consequences of such event to the holders of Rights under Section 13(a) hereof.

 

Section 26.         Notices.
Notices or demands authorized by this Agreement to be given or made by the Rights Agent or by the holder of any Rights Certificate
to or on the Company will be sufficiently given or made if in writing and sent by a recognized national overnight delivery service,
fax (when such fax is transmitted to the fax number set forth below and confirmation of transmission is received) or first-class
mail, postage prepaid, addressed (until another address is filed in writing with the Rights Agent by the Company) as follows:

 

Highpower International, Inc.

Building A1, 68 Xinxia Street,

Pinghu, Longgang,

Shenzhen, Guangdong, 518111

People’s Republic of China

Attention: Chief Financial Officer

 

    	 	41	 

     

    

 

with copies (which will not constitute notice) to:

 

Manatt, Phelps & Phillips, LLP

11355 W. Olympic Blvd.

Los Angeles, CA 90064

Attention: Katherine J. Blair

Fax: (310) 914-5892

 

Subject to the provisions of Section 21, any notice or demand authorized
by this Agreement to be given or made by the Company or by the registered holder of any Rights Certificate to or on the Rights
Agent shall be sufficiently given or made if sent by (i) first-class mail, postage prepaid, (ii) a recognized national overnight
delivery service, prepaid, or (iii) courier or messenger service, in each case addressed (until another address is filed in writing
by the Rights Agent with the Company) as follows:

 

Corporate Stock Transfer, Inc.

3200 Cherry Creek Drive South, #430

Denver, CO 80209

Attention: Carylyn Bell

 

Notices or demands authorized by this Agreement
to be given or made by the Company or the Rights Agent to the registered holder of any Rights Certificate (or, if prior to the
Distribution Date, of the Common Stock) shall be sufficiently given or made if sent by first-class mail, postage prepaid, addressed
to such holder at the address of such holder as shown on the registry books of the Rights Agent (or, if prior to the Distribution
Date, of the transfer agent for the Common Stock).

 

Section 27.         Supplements
and Amendments. Prior to the Distribution Date, and except as otherwise provided in this Section 27, the Company, by action
of the Board, may from time to time, in its sole and absolute discretion, and the Rights Agent shall if the Company so directs,
supplement or amend any provision of this Rights Agreement in any respect (including, without limitation, any extension of the
period in which the Rights may be redeemed, any increase in the Purchase Price and any extension of the Final Expiration Date)
without the approval of any holders of certificates representing the Common Stock. From and after the Distribution Date, and except
as otherwise provided in this Section 27, the Company and the Rights Agent shall, if the Company so directs, supplement or amend
this Rights Agreement without the approval of any holders of Rights in order to (i) cure any ambiguity, (ii) correct
or supplement any provision contained herein which may be defective or inconsistent with any other provisions herein, (iii)
shorten or lengthen any time period hereunder, or (iv) change or supplement the provisions hereunder in any manner which
the Company may deem necessary or desirable; provided, however, that no such supplement or amendment
shall adversely affect the interests of the holders of Right Certificates (other than an Acquiring Person or any Related Person
thereof), and no such amendment may cause the Rights again to become redeemable or cause this Rights Agreement again to become
amendable as to an Acquiring Person or any Related Person thereof other than in accordance with this sentence. Any such supplement
or amendment shall be evidenced by a writing executed by the Company and the Rights Agent. Upon the delivery of a certificate from
an appropriate officer of the Company which states that the proposed supplement or amendment is in compliance with the terms of
this Section 27, the Rights Agent shall execute such supplement or amendment; provided, that the Rights Agent shall
not be obligated to enter into any supplement or amendment that adversely affects the rights, duties or obligations of the Rights
Agent under this Agreement.

 

    	 	42	 

     

    

 

Section 28.         Successors.
All the covenants and provisions of this Agreement by or for the benefit of the Company or the Rights Agent shall bind and inure
to the benefit of their respective successors and assigns hereunder.

 

Section 29.         Determinations
and Actions by the Board. For all purposes of this Agreement, any calculation of the number of shares of Common Stock or any
other class of capital stock outstanding at any particular time, including for purposes of determining the particular percentage
of such outstanding Common Stock of which any Person is the Beneficial Owner, shall be made in accordance with the last sentence
of Rule 13d-3(d)(1)(i) of the General Rules and Regulations under the Exchange Act. The Board shall have the exclusive power and
authority to administer this Agreement and to exercise all rights and powers specifically granted to the Board or to the Company,
or as may be necessary or advisable in the administration of this Agreement, including, without limitation, the right and power
to (a) interpret the provisions of this Agreement and (b) make all determinations deemed necessary or advisable for
the administration of this Agreement (including a determination to redeem or not redeem the Rights or to amend this Agreement).
All such actions, calculations, interpretations and determinations (including, for purposes of clause (y) below, all omissions
with respect to the foregoing) that are done or made by the Board in good faith, shall (x) be final, conclusive and binding
on the Company, the Rights Agent, the registered holders of the Rights and all other parties, and (y) not subject the Board,
or any member thereof, to any liability to the registered holders of the Rights. The Rights Agent is entitled always to assume
the Company’s Board acted in good faith and shall be fully protected and incur no liability in reliance thereon.

 

Section 30.         Benefits
of this Agreement. Nothing in this Agreement shall be construed to give to any Person other than the Company, the Rights Agent
and the registered holders of the Rights Certificates (and, prior to the Distribution Date, of the Common Stock) any legal or equitable
right, remedy or claim under this Agreement; but this Agreement shall be for the sole and exclusive benefit of the Company, the
Rights Agent and the registered holders of the Rights Certificates (and, prior to the Distribution Date, of the Common Stock).

 

Section 31.         Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority
to be invalid, null and void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated; provided, however,
that notwithstanding anything in this Agreement to the contrary, if any such excluded term, provision, covenant or restriction
shall materially and adversely affect the rights, immunities, duties or obligations of the Rights Agent, the Rights Agent shall
be entitled to resign immediately upon written notice to the Company pursuant to the requirements of Section 26 of this Agreement;
and provided, further, that notwithstanding anything in this Agreement to the contrary, if any such
term, provision, covenant or restriction is held by such court or authority to be invalid, null and void or unenforceable and the
Board determines in its good faith judgment that severing the invalid language from this Agreement would adversely affect the purpose
or effect of this Agreement, the right of redemption set forth in Section 23 hereof shall be reinstated and shall not expire until
the Close of Business on the tenth (10th) Business Day following the date of such determination by the Board. Without limiting
the foregoing, if any provision requiring a specific group of directors of the Company to act is held by any court of competent
jurisdiction or other authority to be invalid, null and void or unenforceable, such determination shall then be made by the Board
in accordance with applicable law and the Certificate of Incorporation and the Bylaws.

 

    	 	43	 

     

    

 

Section 32.         Governing
Law. This Agreement, each Right and each Rights Certificate issued hereunder shall be deemed to be a contract made under the
laws of the State of the Delaware and for all purposes shall be governed by and construed in accordance with the laws of such jurisdiction
applicable to contracts made and to be performed entirely within such jurisdiction; provided, however,
that all provisions regarding the rights, duties, and obligations of the Rights Agent shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and to be performed entirely within such State.

 

Section 33.         Counterparts;
Facsimiles and PDFs. This Agreement and any supplements or amendments hereto may be executed in any number of counterparts
and each of such counterparts will for all purposes be deemed to be an original, and all such counterparts will together constitute
one and the same instrument, it being understood that all parties need not sign the same counterpart. A signature to this Agreement
executed or transmitted electronically (including by fax and .pdf) will have the same authority, effect and enforceability as an
original signature. No party hereto may raise the use of such electronic execution or transmission to deliver a signature, or the
fact that any signature or agreement or instrument was transmitted or communicated through such electronic transmission, as a defense
to the formation of a contract, and each party forever waives any such defense, except to the extent such defense relates to lack
of authenticity.

 

Section 34.         Descriptive
Headings. Descriptive headings of the several sections of this Agreement are inserted for convenience only and shall not control
or affect the meaning or construction of any of the provisions hereof.

 

Section 35.         Force
Majeure. Notwithstanding anything to the contrary contained herein, the Rights Agent shall not be liable for any delays or
failures in performance resulting from acts beyond its reasonable control including, without limitation, acts of God, terrorist
acts, shortage of supply, breakdowns or malfunctions, interruptions or malfunction of computer facilities, or loss of data due
to power failures or mechanical difficulties with information storage or retrieval systems, labor difficulties, war, or civil unrest.

 

Section 36.         Further
Assurance. The Company shall perform, acknowledge and deliver or cause to be performed, acknowledged and delivered all such
further and other acts, documents, instruments and assurances as may be reasonably required by the Rights Agent for the carrying
out or performing by the Rights Agent of the provisions of this Agreement.

 

[SIGNATURE PAGE FOLLOWS] 

 

    	 	44	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be duly executed as of the day and year first above written.

 

	 	HIGHPOWER INTERNATIONAL INC.
	 	 	 
	 	By:	/s/ Sunny Pan
	 	 	 
	 	Name:	Sunny Pan
	 	Title:	Chief Financial Officer

 

	 	CORPORATE STOCK TRANSFER, INC.
	 	 	 
	 	By:	/s/ Carylyn Bell
	 	 	 
	 	Name:	Carylyn Bell
	 	Title:	President

 

[Signature Page to Rights Agreement]

 

     

     

    

 

EXHIBIT A 

 

CERTIFICATE OF DESIGNATION

OF

SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

OF

HIGHPOWER INTERNATIONAL, INC.

 

(Pursuant to Section 151 of the Delaware General
Corporation Law)

 

 

 

Highpower International, Inc. (the “Corporation”),
a corporation organized and existing under the General Corporation Law of the State of the Delaware, as amended (the “DGCL”),
hereby certifies that, pursuant to the authority granted by Article 5 of the Amended and Restated Certificate of Incorporation
of the Corporation, as amended (the “Amended and Restated Certificate of Incorporation”), and in accordance
with Section 151 of the DGCL, the Board of Directors of the Corporation (hereinafter being referred to as the “Board of
Directors” or the “Board”), by unanimous written consent dated September 4, 2017, has adopted the
following resolution with respect to the designations, number of shares, preferences, voting powers and other rights and the restrictions
and limitations thereof, of the Series A Junior Participating Stock:

 

RESOLVED, that, pursuant to the authority granted
to and vested in the Board of Directors in accordance with the provisions of the Amended and Restated Certificate of Incorporation,
the designations, number of shares, preferences, voting powers and other rights and the restrictions and limitations thereof of
the Series A Junior Participating Stock are as follows:

 

1. Designation and Amount. The shares
of such series shall be designated as “Series A Junior Participating Preferred Stock” (the “Series A Preferred
Stock”) and the number of shares constituting the Series A Preferred Stock shall be 500,000. Such number of shares may
be increased or decreased by resolution of the Board of Directors prior to issuance; provided, however, that no decrease
shall reduce the number of shares of the Series A Preferred Stock to a number less than the number of shares then outstanding plus
the number of shares reserved for issuance upon the exercise of outstanding options, rights or warrants or upon the conversion
of any outstanding securities issued by the Corporation convertible into the Series A Preferred Stock; provided, further, that
if more than a total of 500,000 shares of Series A Preferred Stock shall be issuable upon the exercise of Rights (the “Rights”)
issued pursuant to the Rights Agreement, dated as of September 12, 2017, by and between the Corporation and Corporate Stock Transfer,
Inc., as rights agent (the “Rights Agreement”), the Board of Directors of the Corporation, pursuant to Section
151(g) of the DGCL, shall direct by resolution or resolutions that a certificate be properly executed, acknowledged, filed and
recorded, in accordance with the provisions of Section 103 of the DGCL, providing for the total number of shares of Series A Preferred
Stock authorized to be issued to be increased (to the extent that the Amended and Restated Certificate of Incorporation then permits)
to the largest number of whole shares (rounded up to the nearest whole number) issuable upon exercise of such Rights.

 

    	 	A-1	 

     

    

 

2. Dividends and Distributions.

 

(a) Subject to the rights of the holders of
any shares of any series of Preferred Stock of the Corporation (the “Preferred Stock”) (or any similar stock)
ranking prior and superior to the shares of Series A Preferred Stock with respect to dividends, the holders of shares of the Series
A Preferred Stock, in preference to the holders of common stock, par value $0.0001 per share, of the Corporation (the “Common
Stock”) and of any other stock of the Corporation ranking junior to the Series A Preferred Stock, shall be entitled to
receive, when, as and if declared by the Board of Directors out of funds of the Corporation legally available for the payment of
dividends, quarterly dividends payable in cash on the last day of each fiscal quarter of the Corporation in each year, or such
other dates as the Board of Directors shall approve (each such date being referred to herein as a “Quarterly Dividend
Payment Date”), commencing on the first Quarterly Dividend Payment Date after the first issuance of a share or fraction
of a share of the Series A Preferred Stock (the “Issue Date”), in an amount per share (rounded to the nearest
cent) equal to the greater of (i) $1.00 or (ii) subject to the provision for adjustment hereinafter set forth, 1,000 times the
aggregate per share amount of all cash dividends, and 1,000 times the aggregate per share amount (payable in kind) of all non-cash
dividends or other distributions other than a dividend payable in shares of Common Stock or a subdivision of the outstanding shares
of the Common Stock (by reclassification or otherwise), declared on the Common Stock since the immediately preceding Quarterly
Dividend Payment Date or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction
of a share of Series A Preferred Stock. In the event the Corporation shall at any time after the Issue Date (A) declare and pay
any dividend on the Common Stock payable in shares of Common Stock, or (B) effect a subdivision or combination or consolidation
of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock)
into a greater or lesser number of shares of Common Stock, then in each such case the amount to which holders of shares of Series
A Preferred Stock were entitled immediately prior to such event under clause (ii) of the preceding sentence shall be adjusted by
multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after
such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such
event. In the event the Corporation shall at any time declare or pay any dividend on the Series A Preferred Stock payable in shares
of Series A Preferred Stock, or effect a subdivision, combination or consolidation of the outstanding shares of Series A Preferred
Stock (by reclassification or otherwise than by payment of a dividend in shares of Series A Preferred Stock) into a greater or
lesser number of shares of Series A Preferred Stock, then in each such case the amount to which holders of shares of Series A Preferred
Stock were entitled immediately prior to such event under clause (ii) of the first sentence of this Section 2(a) shall be adjusted
by multiplying such amount by a fraction, the numerator of which is the number of shares of Series A Preferred Stock that were
outstanding immediately prior to such event and the denominator of which is the number of shares of Series A Preferred Stock outstanding
immediately after such event.

 

(b) The Corporation shall declare a dividend
or distribution on the Series A Preferred Stock as provided in paragraph (a) of this Section 2 immediately after it declares
a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock); and the Corporation shall
pay such dividend or distribution on the Series A Preferred Stock before the dividend or distribution declared on the Common Stock
is paid or set apart; provided that, in the event no dividend or distribution shall have been declared on the Common Stock
during the period between any Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a dividend
of $1.00 per share on the Series A Preferred Stock shall nevertheless be payable, when, as and if declared, on such subsequent
Quarterly Dividend Payment Date.

 

    	 	A-2	 

     

    

 

(c) Dividends shall begin to accrue and be cumulative,
whether or not declared, on outstanding shares of Series A Preferred Stock from the Quarterly Dividend Payment Date next preceding
the date of issue of such shares, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend
Payment Date, in which case dividends on such shares shall begin to accrue from the date of issue of such shares, or unless the
date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of holders of shares
of Series A Preferred Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either
of which events such dividends shall begin to accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid
dividends shall not bear interest. Dividends paid on the shares of Series A Preferred Stock in an amount less than the total amount
of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all
such shares at the time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of
Series A Preferred Stock entitled to receive payment of a dividend or distribution declared thereon, which record date shall be
not more than 60 days prior to the date fixed for the payment thereof.

 

3. Voting Rights. The holders of shares
of Series A Preferred Stock shall have the following voting rights:

 

(a) Subject to the provision for adjustment
hereinafter set forth and except as otherwise provided in the Amended and Restated Certificate of Incorporation or required by
law, each share of Series A Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters upon which the holders
of the Common Stock of the Corporation are entitled to vote. In the event the Corporation shall at any time after the Issue Date
(i) declare or pay any dividend on the Common Stock payable in shares of Common Stock, or (ii) effect a subdivision or combination
or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares
of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the number of votes per share
to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying
such number by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event
and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. In
the event the Corporation shall at any time declare or pay any dividend on the Series A Preferred Stock payable in shares of Series
A Preferred Stock, or effect a subdivision, combination or consolidation of the outstanding shares of Series A Preferred Stock
(by reclassification or otherwise than by payment of a dividend in shares of Series A Preferred Stock) into a greater or lesser
number of shares of Series A Preferred Stock, then in each such case the number of votes per share to which holders of shares of
Series A Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such amount by a fraction,
the numerator of which is the number of shares of Series A Preferred Stock that were outstanding immediately prior to such event
and the denominator of which is the number of shares of Series A Preferred Stock outstanding immediately after such event.

 

    	 	A-3	 

     

    

 

(b) Except as otherwise provided herein, in
the Amended and Restated Certificate of Incorporation or in any other Certificate of Designations creating a series of Preferred
Stock or any similar stock, and except as otherwise required by law, the holders of shares of Series A Preferred Stock and the
holders of shares of Common Stock and any other capital stock of the Corporation having general voting rights shall vote together
as one class on all matters submitted to a vote of stockholders of the Corporation.

 

(c)(i) If at any time dividends on any Series
A Preferred Stock shall be in arrears in an amount equal to six quarterly dividends thereon, the holders of the Series A Preferred
Stock, voting as a separate series from all other series of Preferred Stock and classes of capital stock, shall be entitled to
elect two members of the Board in addition to any Directors elected by any other series, class or classes of securities and the
authorized number of Directors will automatically be increased by two. Promptly thereafter, the Board of the Corporation shall,
as soon as may be practicable, call a special meeting of holders of Series A Preferred Stock for the purpose of electing such members
of the Board. Such special meeting shall in any event be held within forty-five (45) days of the occurrence of such arrearage.

 

(ii) During any period when the holders of Series
A Preferred Stock, voting as a separate series, shall be entitled and shall have exercised their right to elect two Directors,
then, and during such time as such right continues, (a) the then authorized number of Directors shall be increased by two, and
the holders of Series A Preferred Stock, voting as a separate series, shall be entitled to elect the additional Directors so provided
for, and (b) each such additional Director shall serve until the next annual meeting of stockholders for the election of Directors,
or until his successor shall be elected and shall qualify, or until his right to hold such office terminates pursuant to the provisions
of this Section 3(c).

 

(iii) A Director elected pursuant to the terms
hereof may be removed with or without cause by the holders of Series A Preferred Stock entitled to vote in an election of such
Director.

 

(iv) If, during any interval between annual
meetings of stockholders for the election of Directors and while the holders of Series A Preferred Stock shall be entitled to elect
two Directors, there is no such Director in office by reason of resignation, death or removal, then, promptly thereafter, the Board
shall call a special meeting of the holders of Series A Preferred Stock for the purpose of filling such vacancy and such vacancy
shall be filled at such special meeting. Such special meeting shall in any event be held within 45 days of the occurrence of such
vacancy.

 

(v) At such time as the arrearage is fully cured,
and all dividends accumulated and unpaid on any shares of Series A Preferred Stock outstanding are paid, and, in addition thereto,
at least one regular dividend has been paid subsequent to curing such arrearage, the term of office of any Director elected pursuant
to this Section 3(c), or his successor, shall automatically terminate, and the authorized number of Directors shall automatically
decrease by two, the rights of the holders of the shares of the Series A Preferred Stock to vote as provided in this Section 3(c)
shall cease, subject to renewal from time to time upon the same terms and conditions, and the holders of shares of the Series A
Preferred Stock shall have only the limited voting rights elsewhere herein set forth.

 

    	 	A-4	 

     

    

 

(d) Except as set forth herein, or as otherwise
provided by law, holders of Series A Preferred Stock shall have no special voting rights and their consent shall not be required
(except to the extent they are entitled to vote with holders of Common Stock as set forth herein) for taking any corporate action.

 

4. Certain
Restrictions.

 

(a) Whenever quarterly dividends or other dividends
or distributions payable on the Series A Preferred Stock as provided in Section 2 hereof are in arrears, thereafter and
until all accrued and unpaid dividends and distributions, whether or not declared, on shares of Series A Preferred Stock outstanding
shall have been paid in full, the Corporation shall not:

 

(i) declare or pay dividends, or make any other
distributions, on any shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to
the Series A Preferred Stock;

 

(ii) declare or pay dividends, or make any other
distributions, on any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up)
with the Series A Preferred Stock, except dividends paid ratably on the Series A Preferred Stock and all such parity stock on which
dividends are payable or in arrears in proportion to the total amounts to which the holders of all such shares are then entitled;

 

(iii) redeem or purchase or otherwise acquire
for consideration shares of any stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to
the Series A Preferred Stock, provided that, the Corporation may at any time redeem, purchase or otherwise acquire shares
of any such junior stock in exchange for shares of any stock of the Corporation ranking junior (either as to dividends or upon
dissolution, liquidation or winding up) to the Series A Preferred Stock or rights, warrants or options to acquire such junior stock;
or

 

(iv) redeem or purchase or otherwise acquire
for consideration any shares of Series A Preferred Stock, or any shares of stock ranking on a parity (either as to dividends or
upon liquidation, dissolution or winding up) with the Series A Preferred Stock, except in accordance with a purchase offer made
in writing or by publication (as determined by the Board of Directors) to all holders of such shares upon such terms as the Board
of Directors, after consideration of the respective annual dividend rates and other relative rights and preferences of the respective
series and classes, shall determine in good faith will result in fair and equitable treatment among the respective series or classes.

 

(b) The Corporation shall not permit any subsidiary
of the Corporation to purchase or otherwise acquire for consideration any shares of stock of the Corporation unless the Corporation
could, under paragraph (a) of this Section 4, purchase or otherwise acquire such shares at such time and in such manner.

 

5. Reacquired Shares. Any shares of Series
A Preferred Stock purchased or otherwise acquired by the Corporation in any manner whatsoever shall be retired and cancelled promptly
after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued shares of Preferred
Stock and may be reissued, without designation as to series until such shares are once more designated as part of a particular
series of Preferred Stock by resolution or resolutions of the Board of Directors, subject to the conditions and restrictions on
issuance set forth herein, in the Amended and Restated Certificate of Incorporation, or in any other Certificate of Designations
creating a series of Preferred Stock or any similar stock or as otherwise required by law.

 

    	 	A-5	 

     

    

 

6. Liquidation, Dissolution or Winding Up.
(a) Upon any liquidation, dissolution or winding up of the Corporation, no distribution shall be made (i) to the holders of the
Common Stock or of shares of any other stock of the Corporation ranking junior, either as to dividends or upon liquidation, dissolution
or winding up, to the Series A Preferred Stock unless, prior thereto, the holders of shares of Series A Preferred Stock shall have
received $1,000 per share, plus an amount equal to accrued and unpaid dividends and distributions thereon, whether or not declared,
to the date of such payment, provided that, the holders of shares of Series A Preferred Stock shall be entitled to receive
an aggregate amount per share, subject to the provision for adjustment hereinafter set forth, equal to 1,000 times the aggregate
amount to be distributed per share to holders of shares of Common Stock, or (ii) to the holders of shares of stock ranking on a
parity either as to dividends or upon liquidation, dissolution or winding up with the Series A Preferred Stock, except distributions
made ratably on the Series A Preferred Stock and all such parity stock in proportion to the total amounts to which the holders
of all such shares are entitled upon such liquidation, dissolution or winding up. In the event, however, that there are not sufficient
assets available to permit payment in full of the Series A Preferred Stock liquidation preference and the liquidation preferences
of all other classes and series of stock of the Corporation, if any, that rank on a parity with the Series A Preferred Stock in
respect thereof, then the assets available for such distribution shall be distributed ratably to the holders of the Series A Preferred
Stock and the holders of such parity shares in the proportion to their respective liquidation preferences. In the event the Corporation
shall at any time after the Issue Date (A) declare or pay any dividend on the Common Stock payable in shares of Common Stock, or
(B) effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise
than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each
such case the aggregate amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to such event
under the proviso in clause (i) of this Section 6(a) shall be adjusted by multiplying such amount by a fraction the numerator
of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number
of shares of Common Stock that were outstanding immediately prior to such event. In the event the Corporation shall at any time
declare or pay any dividend on the Series A Preferred Stock payable in shares of Series A Preferred Stock, or effect a subdivision,
combination or consolidation of the outstanding shares of Series A Preferred Stock (by reclassification or otherwise than by payment
of a dividend in shares of Series A Preferred Stock) into a greater or lesser number of shares of Series A Preferred Stock, then
in each such case the aggregate amount to which holders of shares of Series A Preferred Stock were entitled immediately prior to
such event under the proviso in clause (1) of paragraph (A) of this Section 6 shall be adjusted by multiplying such amount by a
fraction, the numerator of which is the number of shares of Series A Preferred Stock that were outstanding immediately prior to
such event and the denominator of which is the number of shares of Series A Preferred Stock outstanding immediately after such
event.

 

(b) Neither the merger, consolidation or other
business combination of the Corporation into or with another entity nor the merger, consolidation or other business combination
of any other entity into or with the Corporation (nor the sale, lease, exchange or conveyance of all or substantially all of the
property, assets or business of the Corporation) shall be deemed to be a liquidation, dissolution or winding up of the Corporation
within the meaning of this Section 6.

 

    	 	A-6	 

     

    

 

7. Consolidation, Merger, etc. Notwithstanding
anything to the contrary contained herein, in case the Corporation shall enter into any consolidation, merger, combination or other
transaction in which the shares of Common Stock are converted into, exchanged for or changed into other stock or securities, cash
and/or any other property (payable in kind), then in any such case each share of Series A Preferred Stock shall at the same time
be similarly converted into, exchanged for or changed into an amount per share (subject to the provision for adjustment hereinafter
set forth) equal to 1,000 times the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as
the case may be, into which or for which each share of Common Stock is converted or exchanged. In the event the Corporation shall
at any time after the Issue Date (i) declare or pay any dividend on the Common Stock payable in shares of Common Stock, or (ii)
effect a subdivision or combination or consolidation (by reclassification or otherwise than by payment of a dividend in shares
of Common Stock) of the outstanding shares of Common Stock into a greater or lesser number of shares of Common Stock, then in each
such case the amount set forth in the preceding sentence with respect to the conversion, exchange or change of shares of Series
A Preferred Stock shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of
Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that
were outstanding immediately prior to such event. In the event the Corporation shall at any time declare or pay any dividend on
the Series A Preferred Stock payable in shares of Series A Preferred Stock, or effect a subdivision, combination or consolidation
of the outstanding shares of Series A Preferred Stock (by reclassification or otherwise than by payment of a dividend in shares
of Series A Preferred Stock) into a greater or lesser number of shares of Series A Preferred Stock, then in each such case the
amount set forth in the first sentence of this Section 7 with respect to the exchange or change of shares of Series A Preferred
Stock shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Series A Preferred
Stock that were outstanding immediately prior to such event and the denominator of which is the number of shares of Series A Preferred
Stock outstanding immediately after such event.

 

8. No Redemption. The shares of Series
A Preferred Stock shall not be redeemable from any holder.

 

9. Rank. The Series A Preferred Stock
shall rank, with respect to the payment of dividends and the distribution of assets upon liquidation, dissolution or winding up
of the Corporation, junior to all series of any other class of the Preferred Stock issued either before or after the issuance of
the Series A Preferred Stock, unless the terms of any such series shall provide otherwise, and shall rank senior to the Common
Stock.

 

10. Amendment. At such time as any shares
of Series A Preferred Stock are outstanding, if any proposed amendment to the Amended and Restated Certificate of Incorporation
(including this Certificate of Designation) would materially alter, change or repeal any of the preferences, powers or special
rights given to the Series A Preferred Stock so as to affect the Series A Preferred Stock adversely, then the holders of the Series
A Preferred Stock shall be entitled to vote separately as a class upon such amendment, and the affirmative vote of two-thirds of
the outstanding shares of the Series A Preferred Stock, voting separately as a single class, shall be necessary for the adoption
thereof, in addition to such other vote as may be required by the DGCL.

 

    	 	A-7	 

     

    

 

11. Fractional Shares. Series A Preferred
Stock may be issued in fractions of a share that shall entitle the holder, in proportion to such holder’s fractional shares,
to exercise voting rights, receive dividends, participate in distributions and to have the benefit of all other rights of holders
of Series A Preferred Stock.

 

IN WITNESS WHEREOF, the undersigned have
signed and attested this Certificate of Designation on the [___] day of September 2017.

 

	 	HIGHPOWER INTERNATIONAL, INC.
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	Attest:	 
	 	 
	 	 
	 , Secretary	 

 

    	 	A-8	 

     

    

 

EXHIBIT B 

 

[Form of Rights Certificate] 

 

	Certificate No. R-	 	  Rights

 

NOT EXERCISABLE AFTER 5:00 P.M., NEW YORK CITY TIME, ON SEPTEMBER
12, 2020 UNLESS THE RIGHTS ARE EARLIER REDEEMED OR EXCHANGED. THE RIGHTS ARE SUBJECT TO REDEMPTION, AT THE OPTION OF THE COMPANY,
AT $0.0001 PER RIGHT AND TO EXCHANGE ON THE TERMS SET FORTH IN THE RIGHTS AGREEMENT. UNDER CERTAIN CIRCUMSTANCES SET FORTH IN THE
RIGHTS AGREEMENT, RIGHTS BENEFICIALLY OWNED BY ANY PERSON WHO IS, WAS OR BECOMES AN ACQUIRING PERSON OR ANY RELATED PERSON THEREOF
(AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT), WHETHER CURRENTLY BENEFICIALLY OWNED BY OR ON BEHALF OF SUCH PERSON OR BY
ANY SUBSEQUENT BENEFICIAL OWNER, MAY BECOME NULL AND VOID. [THE RIGHTS REPRESENTED BY THIS RIGHTS CERTIFICATE ARE OR WERE BENEFICIALLY
OWNED BY OR ON BEHALF OF A PERSON WHO IS, WAS OR BECAME AN ACQUIRING PERSON OR A RELATED PERSON OF AN ACQUIRING PERSON (AS SUCH
TERMS ARE DEFINED IN THE RIGHTS AGREEMENT). ACCORDINGLY, THIS RIGHTS CERTIFICATE AND THE RIGHTS REPRESENTED HEREBY MAY BECOME NULL
AND VOID IN THE CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF SUCH AGREEMENT.]1

 

RIGHTS CERTIFICATE

 

HIGHPOWER INTERNATIONAL, INC.

 

This certifies that  _______________,
or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof,
subject to the terms, provisions and conditions of the Rights Agreement, dated as of September 12, 2017 (the “Rights Agreement”),
by and between Highpower International, Inc., a Delaware corporation (the “Company”), and Corporate Stock Transfer,
Inc. (the “Rights Agent”), to purchase from the Company after the Distribution Date (as such term is defined
in the Rights Agreement) and at any time prior to 5:00 p.m., New York City time, on September 12, 2020 unless the Rights are previously
redeemed or exchanged, at the office or offices of the Rights Agent designated for such purpose, or its successors as Rights Agent,
one one-thousandth of a fully paid, nonassessable share of Series A Junior Participating Preferred Stock, par value $0.0001 per
share, of the Company (a “Preferred Share”), at a purchase price of $25.00 in cash per one one-thousandth of
a share (such purchase price, as may be adjusted, the “Purchase Price”), upon presentation and surrender of
this Rights Certificate with the Form of Election to Purchase and related certificate duly executed. The number of Rights evidenced
by this Rights Certificate (and the number of shares that may be purchased upon exercise thereof) set forth above, and the Purchase
Price per share set forth above, are the number and Purchase Price as of the Close of Business on September 21, 2017, based on
the Preferred Shares as constituted at such date. The Company reserves the right to require prior to the occurrence of a Triggering
Event (as such term is defined in the Rights Agreement) that a number of Rights be exercised so that only whole Preferred Shares
will be issued. Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to such terms in
the Rights Agreement.

 

 

1 The portion of the legend in brackets shall be inserted
only if applicable and shall replace the preceding sentence.

 

    	 	B-1	 

     

    

 

In certain circumstances described in the Rights
Agreement, the Rights evidenced thereby may entitle the registered holder thereof to purchase capital stock of an entity other
than the Company or receive capital stock, cash, or other assets of an entity other than the Company, all as provided in the Rights
Agreement. Upon the occurrence (whether prior to, on or after the date of this Rights Certificate) of a Section 11(a)(ii) Event
(as such term is defined in the Rights Agreement), if the Rights evidenced by this Rights Certificate are beneficially owned by
(i) an Acquiring Person or a Related Person of any such Acquiring Person (as such terms are defined in the Rights Agreement), (ii)
a transferee of any such Acquiring Person or of any such Related Person thereof who becomes a transferee after the Acquiring Person
becomes an Acquiring Person, or (iii) under certain circumstances specified in the Rights Agreement, a transferee of a person who,
concurrently with or prior to such transfer, became an Acquiring Person, or a Related Person of an Acquiring Person, such Rights
shall become null and void and no holder hereof shall have any right with respect to such Rights from and after the occurrence
of such Section 11(a)(ii) Event.

 

As provided in the Rights Agreement, the Purchase
Price, and the number and kind of Preferred Shares or other securities issuable upon exercise of a Right and the number of Rights
outstanding are subject to modification and adjustment upon the happening of certain events, including Triggering Events.

 

This Rights Certificate is subject to all of
the terms, provisions and conditions of the Rights Agreement, which terms, provisions and conditions are hereby incorporated herein
by reference and made a part hereof and to which Rights Agreement reference is hereby made for a full description of the rights,
limitations of rights, obligations, duties and immunities hereunder of the Rights Agent, the Company and the holders of the Rights
Certificates, which limitations of rights include the temporary suspension of the exercisability of such Rights under the specific
circumstances set forth in the Rights Agreement. Copies of the Rights Agreement are on file at the above-mentioned office of the
Rights Agent and are also available upon written request to the Rights Agent.

 

This Rights Certificate, with or without other
Rights Certificates, upon surrender at the office or offices of the Rights Agent designated for such purpose, with the Form of
Election and Certificate set forth on the reverse side properly completed and duly executed, may be exchanged for another Rights
Certificate or Rights Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like aggregate number
of one one-thousandths of a Preferred Share as the Rights evidenced by the Rights Certificate or Rights Certificates surrendered
shall have entitled such holder to purchase. If this Rights Certificate shall be exercised in part, the holder shall be entitled
to receive upon surrender hereof another Rights Certificate or Rights Certificates for the number of whole Rights not exercised.

 

    	 	B-2	 

     

    

 

Subject to the provisions of the Rights Agreement,
the Rights evidenced by this Rights Certificate may be redeemed by the Company at its option at a redemption price of $0.0001 per
Right, payable in cash or other securities or property of the Company, at any time prior to the earlier of (i) the Close of Business
on the tenth (10th) Business Day (or such later date as may be determined by the Board pursuant to clause (i) of the first sentence
of Section 3(a) of the Rights Agreement with respect to the Distribution Date) following the Shares Acquisition Date (or, if the
Shares Acquisition Date shall have occurred prior to the Record Date, the Close of Business on the tenth Business Day following
the Record Date), and (ii) the Final Expiration Date. In addition, subject to the provisions of the Rights Agreement, under certain
circumstances following the occurrence of a Section 11(a)(ii) Event but before any person acquires beneficial ownership of fifty
percent (50%) or more of the Common Shares (as such term is defined in the Rights Agreement), the Rights may be exchanged, in whole
or in part, for Common Shares, Preferred Shares, or shares of other preferred stock of the Company having essentially the same
value or economic rights as such share, subject to adjustment for certain events as provided in the Rights Agreement. Immediately
upon the action of the Board of Directors of the Company authorizing any such redemption or exchange, and without any further action
or any notice, the Rights (other than Rights that are not subject to such redemption or exchange) will terminate and the Rights
will only enable holders to receive the redemption price or the shares issuable upon such exchange, as applicable.

 

No fractional Preferred Shares will be issued
upon the exercise of any Right or Rights evidenced hereby (other than fractions that are integral multiples of one one-thousandth
of a Preferred Share, which may, at the election of the Company, be evidenced by depositary receipts), but in lieu thereof a cash
payment may be made, as provided in the Rights Agreement.

 

No holder of this Rights Certificate, as such,
shall be entitled to vote or receive dividends or be deemed for any purpose the holder of Preferred Shares or of any other securities
of the Company which may at any time be issuable on the exercise hereof, nor shall anything contained in the Rights Agreement or
herein be construed to confer upon the holder hereof, as such, any of the rights of a stockholder of the Company or any right to
vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give consent to or
withhold consent from any corporate action, or to receive notice of meetings or other actions affecting stockholders (except as
may otherwise be provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise, unless and until
the Right or Rights evidenced by this Rights Certificate shall have been exercised as provided in the Rights Agreement.

 

This Rights Certificate shall not be valid or
obligatory for any purpose until it shall have been countersigned by the Rights Agent.

 

    	 	B-3	 

     

    

 

WITNESS the facsimile signature or portable
document format of the proper officers of the Company.

 

Dated as of  , 201 .

 

	 	HIGHPOWER INTERNATIONAL, INC.
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 
	 	 	 
	 	Countersigned:
	 	 	 
	 	CORPORATE STOCK TRANSFER, INC.,
	 	as Rights Agent
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

 

    	 	B-4	 

     

    

 

[Form of Reverse Side of Rights Certificate]

 

FORM OF ASSIGNMENT 

 

(To be executed by the registered holder if
such

holder desires to transfer the Rights Certificate.)

 

FOR VALUE RECEIVED _ hereby sells, assigns and transfers
unto _

 

(Please print name and address of transferee)

 

(Please spell out and include in numerals the

number of Rights being transferred by this Agreement)

 

of the Rights evidenced by this Rights Certificate, together with
all right, title and interest therein, and does hereby irrevocably constitute and appoint   Attorney, to transfer the
number of Rights indicated on the books of the within named Company, with full power of substitution.

 

Dated as of:    , 201  

 

	SIGNATURE	 
	 	 
	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 

 

Medallion Signature Guaranteed:

 

Signatures must be guaranteed by an eligible guarantor institution
(a bank, stockbroker, savings and loan association or credit union with membership in an approved signature guarantee medallion
program) at a guarantee level satisfactory to the Rights Agent. A notary public is not sufficient.

 

    	 	B-5	 

     

    

 

CERTIFICATE 

 

The undersigned hereby certifies by checking the appropriate boxes
that:

 

(1) the Rights evidenced by this Rights Certificate [ ] are [ ]
are not being sold, assigned and transferred by or on behalf of a Person who is or was an Acquiring Person or a Related Person
of any such Acquiring Person (as such terms are defined in the Rights Agreement); and

 

(2) after due inquiry and to the best knowledge of the undersigned,
he, she or it [ ] did [ ] did not acquire the Rights evidenced by this Rights Certificate from any Person who is, was or subsequently
became an Acquiring Person or a Related Person of an Acquiring Person.

 

Dated as of:    , 201  

 

	SIGNATURE	 
	 	 
	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 

 

Medallion Signature Guaranteed:

 

Signatures must be guaranteed by an eligible guarantor institution
(a bank, stockbroker, savings and loan association or credit union with membership in an approved signature guarantee medallion
program) at a guarantee level satisfactory to the Rights Agent. A notary public is not sufficient.

 

NOTICE 

 

The signature to the foregoing Assignment and Certificate must correspond
to the name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement or any change
whatsoever.

 

    	 	B-6	 

     

    

 

[Form of Reverse Side of Rights Certificate
– Continued]

 

FORM OF ELECTION TO PURCHASE 

 

(To be executed by the registered holder if
such holder desires to

exercise any or all Rights evidenced by the
Rights Certificate.)

 

To: HIGHPOWER INTERNATIONAL, INC.

 

The undersigned hereby irrevocably elects to exercise  
( ) Rights evidenced by this Rights Certificate to purchase the Preferred Shares issuable upon the exercise of the
Rights (or such other securities of the Company or of any other person which may be issuable upon the exercise of the Rights) and
requests that certificates for such shares be issued in the name of and delivered to or that such shares be credited to the book
entry account of:

 

(Please print name, address and social security,

tax identification or other identifying number.)

 

If such number of Rights shall not be all the Rights evidenced by
this Rights Certificate, a new Rights Certificate for the balance of such Rights shall be registered in the name of and delivered
to:

 

(Please print name, address and social security,

tax identification or other identifying number.)

 

Dated:    ,   

 

	SIGNATURE	 
	 	 
	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 

 

Medallion Signature Guaranteed:

 

Signatures must be guaranteed by an eligible guarantor institution
(a bank, stockbroker, savings and loan association or credit union with membership in an approved signature guarantee medallion
program) at a guarantee level satisfactory to the Rights Agent. A notary public is not sufficient.

 

    	 	B-7	 

     

    

 

CERTIFICATE 

 

The undersigned hereby certifies by checking the appropriate boxes
that:

 

(1) the Rights evidenced by this Rights Certificate [ ] are [ ]
are not being exercised by or on behalf of a Person who is or was an Acquiring Person or a Related Person of any such Acquiring
Person (as such terms are defined pursuant to the Rights Agreement); and

 

(2) after due inquiry and to the best knowledge of the undersigned,
he, she or it [ ] did [ ] did not acquire the Rights evidenced by this Rights Certificate from any Person who is, was or became
an Acquiring Person or a Related Person of an Acquiring Person.

 

Dated:    ,   

 

	SIGNATURE	 
	 	 
	By:	 	 
	 	 	 
	Name:	 	 
	 	 	 
	Title:	 	 

 

Medallion Signature Guaranteed:

 

Signatures must be guaranteed by an eligible guarantor institution
(a bank, stockbroker, savings and loan association or credit union with membership in an approved signature guarantee medallion
program) at a guarantee level satisfactory to the Rights Agent. A notary public is not sufficient.

 

NOTICE 

 

The signature to the foregoing Election to Purchase and Certificate
must correspond to the name as written upon the face of this Rights Certificate in every particular, without alteration or enlargement
or any change whatsoever.

 

    	 	B-8	 

     

    

 

EXHIBIT C 

 

HIGHPOWER INTERNATIONAL, INC. 

 

SUMMARY OF RIGHTS 

TO PURCHASE PREFERRED STOCK 

 

On September 4, 2017, the Board of Directors of Highpower International,
Inc., a Delaware corporation (the “Company”), declared a dividend distribution of one right (each, a “Right”)
for each outstanding share of common stock, par value $0.0001 per share, of the Company (the “Common Shares”).
The dividend is payable to holders of record as of the close of business on September 21, 2017 (the “Record Date”).

 

The following is a summary description of the Rights. This summary
is intended to provide a general description only and is subject to the detailed terms and conditions of the Rights Agreement (the
“Rights Agreement”), dated as of September 12, 2017, by and between the Company and Corporate Stock Transfer,
Inc., as rights agent (the “Rights Agent”).

 

	 	1.	Issuance of Rights 

 

Each holder of Common Stock as of the Record
Date will receive a dividend of one Right per share of Common Stock. One Right will also be issued together with each share of
Common Stock issued by the Company after the Record Date and prior to the Distribution Date (as defined in Section 2 below), and
in certain circumstances, after the Distribution Date. New certificates (or, if uncertificated, the book entry account that evidences
record ownership of such shares) for Common Stock issued after the Record Date will contain a notation incorporating the Rights
Agreement by reference.

 

Until the Distribution Date:

 

	 	•	 	the Rights will not be exercisable; 

 

	 	•	 	the Rights will be evidenced by the certificates for shares of Common Stock (or, if uncertificated, by the book entry account that evidences Stock ownership of such shares) and not by separate rights certificates; and 

 

	 	•	 	the Rights will be transferable by, and only in connection with, the transfer of shares of Common Stock. 

 

	 	2.	Distribution Date; Exercise of Rights; Beneficial Ownership 

 

The Rights are not exercisable until the Distribution
Date. As of and after the Distribution Date, the Rights will separate from the Common Shares and each Right will become exercisable
to purchase one one-thousandth of a share of Series A Junior Participating Preferred Stock, par value $0.0001 per share, of the
Company (each whole share, a “Preferred Share”) at a purchase price of $25.00 (such purchase price, as may be
adjusted, the “Purchase Price”). This portion of a Preferred Share would give the holder thereof approximately
the same dividend, voting, and liquidation rights as would one Common Share.

 

    	 	C-1	 

     

    

 

The “Distribution Date” is the earlier of:

 

	 	•	 	the close of business on the tenth (10th) business day following the first date of public announcement that any person, together with such person’s Related Persons (as defined below) (other than the Company or certain related entities), has become the beneficial owner of fifteen percent (15%) or more of the then outstanding Common Stock other than as a result of repurchases of Common Stock by the Company, certain stock option or restricted stock grants by the Company or the exercise or conversion thereof, or certain inadvertent acquisitions (such person is an “Acquiring Person”) or that discloses information which reveals the existence of an Acquiring Person; provided, however, that stockholders who beneficially own fifteen percent (15%) or more of the outstanding Common Shares as of the date of this Rights Agreement will not be considered an Acquiring Person unless and until such stockholder or any of its Related Persons acquires beneficial ownership of any additional Common Shares, subject to certain exceptions (such date being the “Shares Acquisition Date”); and 

 

	 	•	 	the close of business on the tenth (10th) business day (or such later date as the Board of Directors of the Company shall determine prior to the occurrence of a Distribution Date) after the date of the commencement of, or first public announcement of the intent of any person (other than the Company or certain related entities) to commence (within the meaning of Rule 14d-2(a) of the General Rules and Regulations under the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), a tender or exchange offer that, if completed, would result in such person becoming an Acquiring Person. 

 

A person will be deemed to “beneficially own”
any Common Shares if such person or any Related Person:

 

	 	•	 	is considered a “beneficial owner” of the Common Stock under Rule 13d-3 of the General Rules and Regulations under the Exchange Act; 

 

	 	•	 	has the right to acquire the Common Stock, either immediately or in the future, pursuant to any agreement, arrangement, or understanding (other than a customary underwriting agreement relating to a bona fide public offering of the Common Shares) or upon the exercise of conversion rights, exchange rights, rights, warrants or options, or otherwise, except that a person will not be deemed to be a beneficial owner of (a) Common Stock tendered pursuant to a tender offer or exchange offer by or on behalf of such person or any affiliated or associated persons of such person until the tendered Common Stock are accepted for purchase or exchange, (b) securities issuable upon exercise of a Right before the occurrence of a Triggering Event (as defined in Section 5 below), or (c) securities issuable upon exercise of a Right after the occurrence of a Triggering Event if the 

 

    	 	C-2	 

     

    

 

	 	Rights are originally issued Rights or were issued in connection with an adjustment to originally issued Rights; 

 

	 	•	 	has the right to vote or dispose of the Common Stock pursuant to any agreement, arrangement, or understanding (other than a right to vote arising from the granting of a revocable proxy or consent that is not also then reportable on a Schedule 13D); or 

 

	 	•	 	has an agreement, arrangement, or understanding with another person who beneficially owns Common Stock and the agreement, arrangement, or understanding is for the purpose of acquiring, holding, voting, or disposing of any securities of the Company (other than customary underwriting agreements relating to a bona fide public offering of Common Stock or a right to vote arising from the granting of a revocable proxy or consent that is not also then reportable on a Schedule 13D). 

 

For purposes of the Rights Agreement, a “Related
Person” means, as to any person, any Affiliates or Associates of such person. For purposes of the Rights Agreement, “Affiliate”
and “Associate” shall have the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations
under the Exchange Act.

 

Certain synthetic interests in securities created
by derivative positions — whether or not such interests are considered to be ownership of the underlying shares of Common
Stock or are reportable for purposes of Regulation 13D of the Securities Exchange Act — are treated as beneficial ownership
of the number of shares of Common Stock specified in the documentation evidencing the derivative position as being subject to being
acquired upon the exercise or settlement of the derivative position or as the basis upon which the value or settlement amount of
such derivative position is to be calculated in whole or in part.

 

	 	3.	Issuance of Rights Certificates 

 

As soon as practicable after the Distribution Date, the Rights Agent
will mail rights certificates to holders of record of the shares of Common Stock as of the close of business on the Distribution
Date and, thereafter, the separate rights certificates alone will evidence the Rights.

 

	 	4.	Expiration of Rights 

 

The Rights will expire on the earliest of (a) 5:00 p.m., New York
City time, on September 12, 2020, (b) the time at which the Rights are redeemed (as described in Section 6 below), and (c) the
time at which the Rights are exchanged in full (as described in Section 7 below).

 

	 	5.	Change of Exercise of Rights Following Certain Events 

 

The following described events are referred
to as “Triggering Events.”

 

(a) “Flip-In” Event. In the
event that a person becomes an Acquiring Person, each holder of a Right will thereafter have the right to receive, upon exercise,
shares of Common Stock (or, in certain circumstances, other securities, cash, or other assets of the Company) having a value equal
to two times the Purchase Price. Notwithstanding the foregoing, following the occurrence of a person becoming an Acquiring Person,
all Rights that are, or (under certain circumstances specified in the Rights Agreement) were, beneficially owned by any Acquiring
Person (or by certain related parties) will be null and void. However, Rights are not exercisable following the occurrence of a
person becoming an Acquiring Person until such time as the Rights are no longer redeemable by the Company as set forth in Section
6 below.

 

    	 	C-3	 

     

    

 

(b) “Flip-Over” Events. In
the event that, at any time after a person has become an Acquiring Person, (i) the Company engages in a merger or other business
combination transaction in which the Company is not the continuing or surviving corporation or other entity, (ii) the Company engages
in a merger or other business combination transaction in which the Company is the continuing or surviving corporation and the Common
Stock of the Company is changed or exchanged, or (iii) fifty percent (50%) or more of the Company’s assets or earning power
is sold or transferred, each holder of a Right (except Rights that have previously become null and void as set forth above) shall
thereafter have the right to receive, upon exercise, common shares of the acquiring company having a value equal to two times the
Purchase Price.

 

	 	6.	Redemption 

 

At any time until ten (10) business days following
the Shares Acquisition Date (as defined in Section 2 above), the Board of Directors of the Company may direct the Company to redeem
the Rights in whole, but not in part, at a price of $0.0001 per Right (payable in cash, Common Stock, or other consideration deemed
appropriate by the Board of Directors of the Company). Immediately upon the action of the Board of Directors of the Company directing
the Company to redeem the Rights, the Rights will terminate and the only right of the holders of Rights will be to receive the
$0.0001 redemption price.

 

	 	7.	Exchange of Rights 

 

At any time after a person becomes an Acquiring
Person but before such person acquires beneficial ownership of fifty percent (50%) or more of the outstanding Common Stock, the
Board of Directors of the Company may direct the Company to exchange the Rights (other than Rights owned by such person or certain
related parties, which will have become null and void), in whole or in part, at an exchange ratio of one share of Common Stock
per Right (subject to adjustment). The Company may substitute Preferred Shares (or shares of a class or series of the Company’s
preferred stock having equivalent rights, preferences, and privileges) for Common Stock at an initial rate of one one-thousandth
of a Preferred Share (or of a share of a class or series of the Company’s preferred stock having equivalent rights, preferences,
and privileges) per share of Common Stock. Immediately upon the action of the Board of Directors of the Company directing the Company
to exchange the Rights, the Rights will terminate and the only right of the holders of Rights will be to receive the number of
shares of Common Stock (or one one-thousandth of a Preferred Share or of a share of a class or series of the Company’s preferred
stock having equivalent rights, preferences, and privileges) equal to the number of Rights held by such holder multiplied by the
exchange ratio.

 

	 	8.	Adjustments to Prevent Dilution; Fractional Shares 

 

The Board of Directors of the Company may adjust
the Purchase Price, the number of Preferred Shares or other securities or assets issuable upon exercise of a Right, and the number
of Rights outstanding to prevent dilution that may occur (a) in the event of a stock dividend on, or a subdivision, combination,
or reclassification of, the Preferred Shares, (b) in the event of a stock dividend on, or a subdivision or combination of, the
Common Stock, (c) if holders of the Preferred Shares are granted certain rights, options, or warrants to subscribe for Preferred
Shares or convertible securities at less than the current market price of the Preferred Shares, or (d) upon the distribution to
holders of the Preferred Shares of evidences of indebtedness or assets (excluding regular periodic cash dividends) or of subscription
rights or warrants (other than those referred to above).

 

    	 	C-4	 

     

    

 

With certain exceptions, no adjustment in the
Purchase Price will be required until cumulative adjustments amount to at least one percent (1%) of the Purchase Price. No fractional
Preferred Shares will be issued (other than fractions that are integral multiples of one one-thousandth of a Preferred Share),
and in lieu thereof, an adjustment in cash may be made based on the market price of the Preferred Shares on the last trading date
prior to the date of exercise.

 

	 	9.	No Stockholder Rights Prior to Exercise; Tax Considerations 

 

Until a Right is exercised, the holder thereof,
as such, will have no rights as a stockholder of the Company, including, without limitation, the right to vote or to receive dividends.
While the distribution of the Rights should not be taxable to stockholders or to the Company, stockholders may, depending upon
the circumstances then existing, recognize taxable income in the event that the Rights become exercisable for Common Stock (or
other consideration) of the Company or for common stock of the acquiring company or in the event of the redemption of the Rights
as set forth in Section 6 above.

 

	 	10.	Amendment of Rights Agreement 

 

The Company (by action of the Board of Directors)
may supplement or amend any provision of the Rights Agreement in order to (a) cure any ambiguity, (b) correct or supplement any
provision contained in the Rights Agreement that may be defective or inconsistent with other provisions of the Rights Agreement,
(c) shorten or lengthen any time period under the Rights Agreement, or (d) make any other provisions with respect to the Rights
that the Company deems necessary or desirable; provided, however, that no supplement or amendment made after the
time any person becomes an Acquiring Person may adversely affect the interests of the registered holders of rights certificates
(other than an Acquiring Person or any affiliated or associated person of an Acquiring Person or certain of their transferees).
Without limiting the foregoing, the Company may at any time before any person becomes an Acquiring Person amend the Rights Agreement
to make the provisions of the Rights Agreement inapplicable to a particular transaction by which a person might otherwise become
an Acquiring Person or to otherwise alter the terms and conditions of the Rights Agreement as they may apply with respect to any
such provision.

 

	 	11.	Availability of Rights Agreement 

 

The Company has filed a copy of the Rights Agreement
with the Securities and Exchange Commission as an exhibit to a Current Report on Form 8-K and as an exhibit to a Registration Statement
on Form 8-A, each filed on September 13, 2017. In addition, a copy of the Rights Agreement is available free of charge from the
Company. This summary description of the Rights does not purport to be complete and is qualified in its entirety by reference to
the complete text of the Rights Agreement.

 

    	 	C-5

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