Document:

EX-4.2

 Exhibit 4.2 

Execution Version 
  

 
 ROWAN COMPANIES, INC. 

as the Company 
 ROWAN
COMPANIES PLC 
 as Guarantor 

and 
 U.S. BANK NATIONAL
ASSOCIATION 
 as Trustee 

EIGHTH SUPPLEMENTAL INDENTURE 

Dated as of December 19, 2016 

to 
 INDENTURE 

Dated as of July 21, 2009 

7.375% SENIOR NOTES DUE 2025 
  

 

 TABLE OF CONTENTS 

 

							
	ARTICLE ONE Relation to Indenture; Definitions	  	 	1	  
			
	 SECTION 1.01.
	 	 Relation to Indenture.
	  	 	1	  
	 SECTION 1.02.
	 	 Definitions.
	  	 	1	  
	 SECTION 1.03.
	 	 General References.
	  	 	1	  
		
	ARTICLE TWO The Series of Securities	  	 	2	  
			
	 SECTION 2.01.
	 	 The Form and Title of the Securities.
	  	 	2	  
	 SECTION 2.02.
	 	 Amount.
	  	 	2	  
	 SECTION 2.03.
	 	 Stated Maturity.
	  	 	2	  
	 SECTION 2.04.
	 	 Interest and Interest Rates.
	  	 	2	  
	 SECTION 2.05.
	 	 Place of Payment.
	  	 	2	  
	 SECTION 2.06.
	 	 Optional Redemption.
	  	 	3	  
	 SECTION 2.07.
	 	 Defeasance and Discharge; Covenant Defeasance.
	  	 	3	  
	 SECTION 2.08.
	 	 Global Securities.
	  	 	3	  
	 SECTION 2.09.
	 	 Rowan UK Guarantee.
	  	 	3	  
		
	ARTICLE THREE Amendments to Original Indenture	  	 	3	  
			
	 SECTION 3.01.
	 	 Defined Terms.
	  	 	3	  
	 SECTION 3.02.
	 	 Additional Events of Default.
	  	 	9	  
	 SECTION 3.03.
	 	 Release of Securities Guarantee.
	  	 	9	  
		
	ARTICLE FOUR Additional Covenants	  	 	10	  
			
	 SECTION 4.01.
	 	 Limitation on Liens.
	  	 	10	  
	 SECTION 4.02.
	 	 Limitation on Sale and Leaseback Transactions.
	  	 	10	  
	 SECTION 4.03.
	 	 Change of Control Repurchase Event.
	  	 	11	  
		
	ARTICLE FIVE Miscellaneous	  	 	13	  
			
	 SECTION 5.01.
	 	 Certain Trustee Matters.
	  	 	13	  
	 SECTION 5.02.
	 	 Continued Effect.
	  	 	13	  
	 SECTION 5.03.
	 	 Governing Law.
	  	 	13	  
	 SECTION 5.04.
	 	 Counterparts.
	  	 	13	  

 EXHIBITS 
  

			
	Exhibit A:	  	Form of Note

  
 Eighth Supplemental
Indenture 

 EIGHTH SUPPLEMENTAL INDENTURE 

EIGHTH SUPPLEMENTAL INDENTURE, dated as of December 19, 2016 (this “Supplemental Indenture”), by and among ROWAN COMPANIES, INC.,
a corporation duly organized and existing under the laws of the State of Delaware (the “Company”), ROWAN COMPANIES PLC, a public limited company incorporated under the laws of England and Wales (“Rowan UK”), and U.S.
BANK NATIONAL ASSOCIATION, a nationally chartered banking association, as trustee under the Indenture referred to below (in such capacity, the “Trustee”). 

RECITALS OF THE COMPANY 
 WHEREAS, the
Company and the Trustee have heretofore entered into an Indenture dated as of July 21, 2009 (the “Original Indenture”) (the Original Indenture, as supplemented from time to time, including without limitation pursuant to this
Supplemental Indenture, being referred to herein as the “Indenture”); and 
 WHEREAS, under the Original Indenture, a new series of Securities may
at any time be established by an indenture supplemental to the Original Indenture; and 
 WHEREAS, the Company proposes to create under the Indenture a new
series of Securities; and 
 WHEREAS, Rowan UK proposes to fully and unconditionally guarantee such new series of Securities; and 

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

ARTICLE ONE 

RELATION TO INDENTURE; DEFINITIONS 

 

	SECTION 1.01.	Relation to Indenture. 

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

	SECTION 1.02.	Definitions. 

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

	SECTION 1.03.	General References. 

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

  

					
		 		 	Eighth Supplemental Indenture

 ARTICLE TWO 

THE SERIES OF SECURITIES 

 

	SECTION 2.01.	The Form and Title of the Securities. 

 There is hereby established a new series of
Securities to be issued under the Indenture and to be designated as the Company’s 7.375% Senior Notes due 2025 (the “Notes”). The Notes shall be substantially in the form attached as Exhibit A hereto, in each case with such
appropriate insertions, omissions, substitutions and other variations as are required or permitted by the Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as the Company
may deem appropriate or as may be required or appropriate to comply with any laws or with any rules made pursuant thereto or with the rules of any securities exchange or automated quotation system on which the Notes may be listed or traded, or to
conform to general usage, or as may, consistently with the Indenture, be determined by the officers executing such Notes, as evidenced by their execution thereof. 

The Notes shall be executed, authenticated and delivered in accordance with the provisions of, and shall in all respects be subject to, the terms, conditions
and covenants of the Original Indenture as supplemented by this Supplemental Indenture (including the form of Note attached as Exhibit A hereto (the terms of which are incorporated in and made a part of this Supplemental Indenture for all
intents and purposes)). 
  

	SECTION 2.02.	Amount. 

 The aggregate principal amount of the Notes that may be authenticated and
delivered pursuant hereto is unlimited. The Trustee shall initially authenticate and deliver Notes for original issue in an initial aggregate principal amount of up to $500,000,000 upon delivery to the Trustee of a Company Order for the
authentication and delivery of such Notes. The aggregate principal amount of the Notes to be issued hereunder may be increased at any time hereafter and the series may be reopened for issuances of Additional Notes, upon Company Order, without the
consent of any Holder and without any further supplement or amendment to the Original Indenture or this Supplemental Indenture. The Notes issued on the date hereof and any such Additional Notes that may be issued hereafter shall be part of the same
series of Securities for all purposes under the Indenture. 
  

	SECTION 2.03.	Stated Maturity. 

 The Notes may be issued on any Business Day on or after
December 19, 2016, and the Stated Maturity of the Notes shall be June 15, 2025. 
  

	SECTION 2.04.	Interest and Interest Rates. 

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

	SECTION 2.05.	Place of Payment. 

 As long as any Notes are Outstanding, the Company shall maintain
an office or agency in the United States where Notes may be presented for payment. Such office or agency shall initially be the office or agency of the Trustee in Houston, Texas. 

  

					
		  	2	  	Eighth Supplemental Indenture

	SECTION 2.06.	Optional Redemption. 

 At its option, the Company may redeem the Notes, in whole or
in part, in principal amounts of $2,000 or integral multiples of $1,000 in excess thereof, at any time or from time to time, at the applicable Redemption Price determined as set forth in the form of Note attached hereto as Exhibit A, in
accordance with the terms set forth in the Notes and in accordance with Article Eleven of the Original Indenture. 
  

	SECTION 2.07.	Defeasance and Discharge; Covenant Defeasance. 

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

	SECTION 2.08.	Global Securities. 

 The Notes shall initially be issuable in whole or in part in
the form of one or more Global Securities. Such Global Securities (i) shall be deposited with, or on behalf of, the Depository Trust Company, New York, New York, which shall act as Depositary with respect to the Notes, (ii) shall bear the
legends applicable to Global Securities set forth in Sections 2.2 and 2.4 of the Original Indenture, (iii) may be exchanged in whole or in part for Securities in definitive form upon the terms and subject to the conditions provided in
Section 3.5 of the Original Indenture and in this Supplemental Indenture and (iv) shall otherwise be subject to the applicable provisions of the Indenture. 
  

	SECTION 2.09.	Rowan UK Guarantee. 

 Article Fourteen of the Original Indenture (as amended and
supplemented by this Supplemental Indenture, including without limitation Section 3.03 hereof) shall apply to the Notes. For the purposes of this Supplemental Indenture and the Notes (including without limitation the provisions of the Original
Indenture to the extent applicable thereto), the term “Guarantor” shall mean Rowan UK. Rowan UK hereby agrees to be bound by a Securities Guarantee with respect to the Notes and that Rowan UK shall be a Guarantor of the Notes in accordance
with Article Fourteen of the Indenture; provided, however, that the Securities Guarantee granted hereby shall not apply to any obligations under any series of Securities other than the Notes. Rowan UK hereby agrees that its Securities
Guarantee of the Notes will remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Securities Guarantee. 

ARTICLE THREE 

AMENDMENTS TO ORIGINAL INDENTURE 

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

	SECTION 3.01.	Defined Terms. 

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

“Additional Defeasible Provisions” means the provisions of Sections 5.1(c), 5.1(d), 5.1(h), 10.6 and 10.7 of the Indenture. 

  

					
		 	3	 	Eighth Supplemental Indenture

 “Additional Notes” means an unlimited maximum aggregate principal amount of Notes (other than the Notes
issued on the date hereof) issued under the Indenture pursuant to Section 2.02 of this Supplemental Indenture. 
 “Attributable
Indebtedness,” when used with respect to any Sale and Leaseback Transaction, means, as at the time of determination, the present value (discounted at the rate set forth or implicit in the terms of the lease included in such transaction) of the
rental payments during the remaining term of the lease included in such Sale and Leaseback Transaction (other than amounts required to be paid on account of taxes, maintenance, repairs, insurance, assessments, utilities, operating and labor costs
and other items that do not constitute payments for property rights), including any period for which such lease has been extended. In the case of any lease that is terminable by the lessee upon the payment of a penalty, such net amount shall be the
lesser of the net amount determined assuming termination upon the first date such lease may be terminated (in which case the net amount shall also include the amount of the penalty, but no rent shall be considered as required to be paid under such
lease subsequent to the first date upon which it may be so terminated) or the net amount determined assuming no such termination. 
 “Capital Lease
Obligation” means, at the time any determination is to be made, the amount of the liability in respect of a capital lease that would at that time be required to be capitalized on a balance sheet in accordance with GAAP, and the stated maturity
thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the first date upon which such lease may be prepaid by the lessee without payment of a penalty. 

“Capital Stock” means: 
 (1) in the case of a
corporation, corporate stock; 
 (2) in the case of an association or business entity, any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock; 
 (3) in the case of a partnership or limited liability company, partnership interests (whether
general or limited) or membership interests; and 
 (4) any other interest or participation that confers on a Person the right to receive a share of the
profits and losses of, or distributions of assets of, the issuing Person. 
 “Change of Control” means the occurrence of any of the following: (a)
the direct or indirect sale, transfer, conveyance or other disposition (other than by way of merger, amalgamation, consolidation, plan or scheme of arrangement, exchange offer, business combination or similar transaction of Rowan UK), in one or a
series of related transactions, of all or substantially all of the properties or assets of Rowan UK and the Company taken as a whole to any person (as such term is used in Section 13(d) of the Exchange Act) other than Rowan UK or one of its
Subsidiaries, or a Person controlled by Rowan UK or one of its Subsidiaries; (b) the consummation of any transaction (including, without limitation, any merger, amalgamation, consolidation, plan or scheme of arrangement, exchange offer, business
combination or similar transaction) the result of which is that any person (as such term is used in Section 13(d) of the Exchange Act) becomes the beneficial owner, directly or indirectly, of more than 50% of the then outstanding Voting Stock of
Rowan UK (excluding a Redomestication of Rowan UK); and (c) the adoption by the board of directors of Rowan UK of a plan of liquidation or dissolution for Rowan UK. 

  

					
		 	4	 	Eighth Supplemental Indenture

 “Change of Control Offer” has the meaning set forth in Section 4.03 of this Supplemental
Indenture. 
 “Change of Control Payment” has the meaning set forth in Section 4.03 of this Supplemental Indenture. 

“Change of Control Payment Date” has the meaning set forth in Section 4.03 of this Supplemental Indenture. 

“Change of Control Repurchase Event” means the occurrence of both a Change of Control and a Rating Event with respect to the Notes. 

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

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

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

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

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

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

  

					
		 	5	 	Eighth Supplemental Indenture

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

(7) all Indebtedness of others (other than endorsements in the ordinary course of business) guaranteed by such Person to the extent of such guarantee. 

“Issue Date” means the first date on which any Notes are issued, authenticated and delivered under the Indenture. 

“Joint Venture” means any partnership, corporation or other entity in which up to and including 50% of the partnership interests, outstanding Voting
Stock or other equity interests is owned, directly or indirectly, by the Company and/or one or more Subsidiaries of the Company. 
 “Lien” means,
with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, regardless of whether filed, recorded or otherwise perfected under applicable law (including any conditional sale
or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security interest in any asset and any filing of or agreement to give any financing statement under the Uniform Commercial Code (or
equivalent statutes) of any jurisdiction). 
 “Notes” means a series of Securities designated as the Company’s 7.375% Senior Notes due 2025,
issued pursuant to this Indenture, as amended and supplemented by the Eighth Supplemental Indenture hereto dated as of December 19, 2016. 

“Permitted Liens” means: 
 (1) Liens existing on the
Issue Date; 
 (2) Liens on any Person’s property or assets existing at the time the Company acquires such Person or its property or assets, or at the
time such Person becomes a Subsidiary of the Company; 
 (3) intercompany Liens in favor of the Company or any Subsidiary of the Company; 

(4) Liens on assets either (a) securing all or part of the cost of acquiring, constructing, improving, developing or repairing the assets or
(b) securing Indebtedness incurred to finance the acquisition of the assets or the cost of constructing, improving, developing, expanding or repairing the assets and commencing commercial operation of the assets if the applicable Indebtedness
was incurred prior to, at the time of or within 24 months after the acquisition, or completion of construction, improvement, development, expansion or repair of the assets or their commencing commercial operation; 

(5) Liens in favor of governmental entities to secure (a) payments under any contract or statute to secure progress or advance payments or
(b) industrial development, pollution control or similar indebtedness; 
 (6) governmental Liens under contracts for the sale of products or services;

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

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

  

					
		 	6	 	Eighth Supplemental Indenture

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

(10) statutory or other Liens arising in the ordinary course of business of the Company or of any Subsidiary of the Company and relating to amounts that are
not yet delinquent or that the Company or any Subsidiary of the Company is contesting in good faith; 
 (11) Liens on stock, partnership or other equity
interests of the Company in any Joint Venture or of any Subsidiary of the Company that owns an equity interest in a Joint Venture to secure Indebtedness contributed or advanced solely to that Joint Venture; 

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

(13) deposits made in connection with maintaining self-insurance, to obtain the benefits of laws, regulations or arrangements relating to unemployment
insurance, old age pensions, social security or similar matters or to secure surety, appeal or customs bonds; and 
 (14) any extensions, substitutions,
renewals or replacements of the above-described Liens. 
 “Principal Property” means any drilling rig, or integral portion thereof, owned or
leased by the Company or any Subsidiary of the Company and used for drilling offshore oil and gas wells, that, in the opinion of the Board of Directors of the Company, is of material importance to the business of the Company and its Subsidiaries
considered as a whole; provided, however that no such drilling rig, or portion thereof, shall be deemed of material importance if its net book value (after deducting accumulated depreciation) is less than 2% of the Consolidated Net Tangible
Assets of the Company. 
 “Rating Agencies” means, with respect to the Notes, (1) each of Moody’s Investors Service, Inc. and S&P
Global Ratings, and the successors of either and (2) if either of the aforementioned ceases to rate such notes or fails to make a rating of such notes publicly available for reasons outside of Rowan UK’s control, a “nationally
recognized statistical rating organization” within the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by Rowan UK as a replacement agency for each of the aforementioned, or both of
them, as the case may be. 
 “Rating Event” means, with respect to the Notes, the rating of such Notes is lowered from the rating received by such
notes upon issuance by each of the Rating Agencies on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following public
notice of the occurrence of the Change of Control (which 60-day period shall be extended so long as the rating of such Notes is under publicly announced consideration for possible downgrade by either of the
Rating Agencies). 
 “Redomestication” means: 
 (1)
any amalgamation, merger, plan or scheme of arrangement, exchange offer, business combination, reincorporation, reorganization, consolidation or similar action of Rowan UK with or into any other person (as such term is used in Section 13(d) of the
Exchange Act), or of any other person (as such term is used in Section 13(d) of the Exchange Act) with or into Rowan UK, or the sale, distribution or other disposition (other than by lease) of all or substantially all of the properties or assets of
Rowan UK and its Subsidiaries taken as a whole to any other person (as such term is used in Section 13(d) of the Exchange Act), 
 (2) any continuation,
discontinuation, domestication, redomestication, amalgamation, merger, plan or scheme of arrangement, exchange offer, business combination, reincorporation, reorganization, conversion, consolidation or similar action with respect to Rowan UK
pursuant to the law of the jurisdiction of its organization and of any other jurisdiction, or 

  

					
		 	7	 	Eighth Supplemental Indenture

 (3) the formation of a Person that becomes, as part of the transaction or series of related transactions, the
direct or indirect owner of substantially all of the voting shares of the Rowan UK (the “New Parent”), if as a result thereof 
 (4) in the case
of any action specified in clause (1), the entity that is the surviving, resulting or continuing Person in such amalgamation, merger, plan or scheme of arrangement, exchange offer, business combination, reincorporation, reorganization, consolidation
or similar action, or the transferee in such sale, distribution or other disposition, 
 (5) in the case of any action specified in clause (2), the entity
that constituted Rowan UK immediately prior thereto (but disregarding for this purpose any change in its jurisdiction of organization), or 
 (6) in the
case of any action specified in clause (3), the New Parent (in any such case, the “Surviving Person”) is a corporation or other entity, validly incorporated or formed and existing in good standing (to the extent the concept of good
standing is applicable) under the laws of any jurisdiction, whose voting shares of each class of capital stock issued and outstanding immediately following such action, and giving effect thereto, shall be beneficially owned by substantially the same
Persons, in substantially the same percentages, as was such capital stock or shares of the entity constituting Rowan UK immediately prior thereto and, if the Surviving Person is the New Parent, the Surviving Person continues to be owned, directly or
indirectly, by substantially all of the Persons who were shareholders of Rowan UK immediately prior to such transaction. For the purposes of this definition, Rowan UK shall also mean any successor Person resulting from any transaction permitted by
Article Eight of the Original Indenture. 
 “Sale and Leaseback Transaction” means any arrangement with any Person under which the Company or any
Subsidiary of the Company leases any Principal Property that the Company or that Subsidiary has or will sell or transfer to that Person; provided, however, that each of the following shall be deemed not to be a Sale and Leaseback Transaction:

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

(2) intercompany leases between the Company and a Subsidiary or between two or more Subsidiaries of the Company; and 

(3) leases of a Principal Property executed by the time of or within 12 months after the acquisition, the completion of construction, alteration, improvement
or repair, or the commencement of commercial operation of such Principal Property. 
 “Significant Subsidiary” means any Subsidiary of the Company
that would be a “significant subsidiary” as defined in Article 1, Rule 1-02(w) of Regulation S-X, promulgated pursuant to the Securities Act, as such
Regulation is in effect on the Issue Date. 

  

					
		 	8	 	Eighth Supplemental Indenture

 “Subsidiary” means, with respect to any Person: 

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

	SECTION 3.02.	Additional Events of Default. 

 With respect to the Notes, the occurrence of any of
the following events shall, in addition to the other events or circumstances described as Events of Default in Section 5.1 of the Original Indenture, constitute an Event of Default: 

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

(2) the Company’s failure to repurchase all of the Notes tendered for purchase upon a Change of Control Repurchase Event under Section 10.8 of the
Indenture, as amended by Section 4.03 of this Supplemental Indenture. 
  

	SECTION 3.03.	Release of Securities Guarantee. 

 Subject to the limitations set forth in the
preamble to Article Three of this Supplemental Indenture, Article Fourteen of the Original Indenture is hereby amended by adding the following Section 14.4 thereto: 

Section 14.4 Releases. 
 Rowan UK will be released
and relieved of any obligations under its Securities Guarantee immediately upon (a) Legal Defeasance in accordance with Article Thirteen of this Indenture or satisfaction and discharge of this Indenture in accordance with Article Four of this
Indenture or (b) the merger of Rowan UK with and into the Company. 

  

					
		 	9	 	Eighth Supplemental Indenture

 ARTICLE FOUR 

ADDITIONAL COVENANTS 

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

	SECTION 4.01.	Limitation on Liens. 

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

Section 10.6 Limitation on Liens. 
 (a) The Company
shall not, and shall not permit any of its Subsidiaries to, issue, assume or guarantee any Indebtedness for borrowed money secured by any Lien upon any Principal Property without making effective provision whereby the Notes (together with, if the
Company shall so determine, any other Indebtedness or other obligation of the Company or any Subsidiary) shall be secured equally and ratably with (or, at the option of the Company, prior to) the Indebtedness so secured for so long as such
Indebtedness is so secured. The foregoing restrictions will not, however, apply to Indebtedness secured by Permitted Liens. 
 (b) Notwithstanding the
immediately preceding paragraph (a), without securing the Notes, the Company or any Subsidiary of the Company may issue, assume or guarantee Indebtedness that such paragraph (a) would otherwise restrict or prohibit, in a total principal amount
that, when added to all of the other outstanding Indebtedness of the Company and its Subsidiaries that such paragraph (a) would otherwise restrict or prohibit and the total amount of Attributable Indebtedness outstanding for Sale and Leaseback
Transactions (other than any such Attributable Indebtedness for outstanding Sale and Leaseback Transactions in connection with which the Company has voluntarily retired debt securities issued under this Indenture, Indebtedness of equal rank or
Funded Indebtedness (in each case as described in clause (c) of Section 10.7)), does not exceed 15% of the Consolidated Net Tangible Assets of the Company. 
  

	SECTION 4.02.	Limitation on Sale and Leaseback Transactions. 

 Subject to the limitations set
forth in the preamble to Article Four of this Supplemental Indenture, Article Ten of the Original Indenture is hereby further amended by adding the following Section 10.7 thereto: 

Section 10.7 Limitation on Sale and Leaseback Transactions. 

The Company shall not, and shall not permit any of its Subsidiaries to, enter into a Sale and Leaseback Transaction, unless one of the following applies: 

(a) the Company or such Subsidiary of the Company could incur Indebtedness in a principal amount equal to the Attributable Indebtedness for that Sale and
Leaseback Transaction and, without violating Section 10.6, could secure that Indebtedness by a Lien on the property to be leased without equally or ratably securing the Notes; 

(b) after the issuance of the Notes and within the period beginning nine months before the closing of the Sale and Leaseback Transaction and ending nine
months after such closing, the Company or any of its Subsidiaries have expended for property used or to be used in the ordinary course of business an amount 

  

					
		 	10	 	Eighth Supplemental Indenture

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

	SECTION 4.03.	Change of Control Repurchase Event. 

 Subject to the limitations set forth in the
preamble to Article Four of this Supplemental Indenture, Article Ten of the Original Indenture is hereby further amended by adding the following Section 10.8 thereto: 

Section 10.8 Change of Control Repurchase Event. 
 Upon
the occurrence of a Change of Control Repurchase Event with respect to the Notes, unless the Company has previously or concurrently exercised its right to redeem all of the Notes as described under Section 2.06 each Holder of Notes of such
series will have the right, except as provided below, to require that the Issuer purchase all or any part (in denominations of $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes for a cash price equal to 101.0%
of the aggregate principal amount of the Notes to be purchased, plus accrued and unpaid interest, if any, thereon to the date of purchase (the “Change of Control Payment”). 

Not later than 30 days following any Change of Control Repurchase Event, the Company will deliver, or cause to be delivered, to the holders of record of the
Notes, with a copy to the trustee, a notice: 
 (1) describing the transaction or transactions that constitute the Change of Control Repurchase Event; 

(2) offering to purchase, pursuant to the procedures required by the indenture and described in the notice (a “Change of Control Offer”), on a date
specified in the notice, which shall be a business day not earlier than 30 days, nor later than 60 days, from the date the notice is delivered (the “Change of Control Payment Date”), and for the Change of Control Payment, all Notes that
are properly tendered by such holder pursuant to such Change of Control Offer prior to 5:00 p.m. New York time on the second business day preceding the Change of Control Payment Date; and 

(3) describing the procedures, as determined by the Company, consistent with the indenture, that holders of record of the Notes must follow to accept the
Change of Control Offer. 
 On or before the Change of Control Payment Date, the Company will, to the extent lawful, deposit with the paying agent an amount
equal to the Change of Control Payment in respect of the Notes or portions of Notes properly tendered. 
 On the Change of Control Payment Date, the Company
will, to the extent lawful: 
 (1) accept for payment all Notes or portions of Notes (in denominations of $2,000 or integral multiples of $1,000 in excess
thereof) properly tendered pursuant to the Change of Control Offer; and 
 (2) deliver or cause to be delivered to the trustee the Notes so accepted
together with an officer’s certificate stating the aggregate principal amount of Notes or portions of Notes being purchased by the Company. 

  

					
		 	11	 	Eighth Supplemental Indenture

 The paying agent will promptly deliver to each holder who has so tendered Notes the Change of Control Payment for
such Notes, and the trustee will promptly authenticate and mail (or cause to be transferred by book-entry) to each holder a new note equal in principal amount to any unpurchased portion of the Notes so tendered, if any; provided that each such new
note will be in a principal amount of $2,000 or integral multiples of $1,000 in excess thereof. 
 If the Change of Control Payment Date is on or after an
interest record date and on or before the related Interest Payment Date, any accrued and unpaid interest, if any, will be paid on the relevant Interest Payment Date to the Person in whose name a note is registered at the close of business on such
record date. 
 A Change of Control Offer will be required to remain open for at least 20 business days or for such longer period as is required by law. The
Company will publicly announce the results of the Change of Control Offer on or as soon as practicable after the date of purchase. 
 The Company will not
be required to make a Change of Control Offer upon a Change of Control Repurchase Event if (i) a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in the
indenture applicable to a Change of Control Offer made by the Company and purchases all Notes properly tendered and not withdrawn under such Change of Control Offer or (ii) the Company has given notice of the redemption of all of the Notes then
Outstanding as described under Section 2.06 unless and until there is a default in the payment of the applicable Redemption Price. 
 If holders of not
less than 95.0% in aggregate principal amount of the Outstanding Notes validly tender and do not withdraw such Notes in a Change of Control Offer and the Company, or any third party making a Change of Control Offer in lieu of the Company as
described above, purchases all of the Notes validly tendered and not withdrawn by such holders, the Company will have the right, upon not less than 30 nor more than 60 days’ prior notice, given not more than 30 days following such purchase
pursuant to the Change of Control Offer to redeem all Notes that remain Outstanding following such purchase at a Redemption Price in cash equal to the applicable Change of Control Payment, plus, to the extent not included in the Change of Control
Payment price, accrued and unpaid interest, if any, to the date of redemption. 
 The Company will comply with all applicable securities regulation in the
United States, including, without limitation, the requirements of Rule 14e-1 under the Exchange Act and any other applicable laws and regulations in connection with the purchase of Notes pursuant to a Change
of Control Offer. To the extent that the provisions of any applicable securities laws or regulations conflict with this Section 10.8, the Company shall comply with the applicable securities laws and regulations and will not be deemed to have
breached its obligations under this Section 10.8 by virtue of such compliance. 
 Notwithstanding anything to the contrary contained herein, a Change
of Control Offer may be made in advance of a Change of Control Repurchase Event, conditional upon such Change of Control Repurchase Event, if a definitive agreement is in place for the Change of Control at the time of making of the Change of Control
Offer. 

  

					
		 	12	 	Eighth Supplemental Indenture

 ARTICLE FIVE 

MISCELLANEOUS 
  

	SECTION 5.01.	Certain Trustee Matters. 

 The recitals contained herein shall be taken as the
statements of the Company, and the Trustee assumes no responsibility for their correctness. 
 The Trustee makes no representations as to the validity or
sufficiency of this Supplemental Indenture or the Notes or the proper authorization or the due execution hereof or thereof by the Company. 
 Except as
expressly set forth herein, nothing in this Supplemental Indenture shall alter the duties, rights or obligations of the Trustee set forth in the Original Indenture. 

The Trustee makes no representation or warranty as to the validity or sufficiency of the information contained in the prospectus supplement related to the
Notes, except such information which specifically pertains to the Trustee itself, or any information incorporated therein by reference. 
  

	SECTION 5.02.	Continued Effect. 

 Except as expressly supplemented and amended by this
Supplemental Indenture, the Original Indenture shall continue in full force and effect in accordance with the provisions thereof, and the Original Indenture (as supplemented and amended by this Supplemental Indenture) is in all respects hereby
ratified and confirmed. This Supplemental Indenture and all its provisions shall be deemed a part of the Original Indenture in the manner and to the extent herein and therein provided. 

 

	SECTION 5.03.	Governing Law. 

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

	SECTION 5.04.	Counterparts. 

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

(Remainder of Page Intentionally Left Blank) 

  

					
		 	13	 	Eighth Supplemental Indenture

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

					
	THE COMPANY:
	
	ROWAN COMPANIES, INC.
		
	By:	 	 /s/ Stephen M. Butz

		 	Stephen M. Butz
		 	Executive Vice President and Chief Financial Officer
	
	GUARANTOR:
	
	ROWAN COMPANIES PLC
		
	By:	 	 /s/ Stephen M. Butz

		 	Stephen M. Butz
		 	Executive Vice President and Chief Financial Officer
	
	The above signatory for Rowan Companies plc signed in the presence of:
	
	 /s/ Heather McLemore

					
	
	Print name of witness: Heather McLemore
	Address:	 	2800 Post Oak Blvd.
		 	Suite 5450
		 	Houston, Texas 77056

 
					
	
	TRUSTEE:
	
	U.S. BANK NATIONAL ASSOCIATION
		
	By:	 	 /s/ Shazia Flores

		 	Name:	 	Shazia Flores
		 	Title:	 	Authorized Officer

 Signature page to Eighth Supplemental Indenture 

 EXHIBIT A 

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

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

 7.375% Senior Note due 2025 
  

			
	No.             	  	U.S.$            

 CUSIP: 779382 AU4 
 ISIN:
US779382AU43 
 ROWAN COMPANIES, INC., a Delaware corporation (herein called the “Company”, which term includes any successor or resulting Person
under the Indenture hereinafter referred to), for value received, hereby promises to pay to             , or registered assigns, the principal sum of
             United States Dollars on June 15, 2025, and to pay interest thereon from             , or from the most recent
Interest Payment Date to which interest has been paid or duly provided for, semi-annually on June 15 and December 15 in each year, commencing on             , at the rate of
7.375% per annum, until the principal hereof is paid or made available for payment and at the rate of 7.375% per annum on any overdue principal and premium and on any overdue installment of interest (to the extent that the payment of such interest
shall be legally enforceable). The amount of interest payable for any period shall be computed on the basis of twelve 30-day months and a 360-day year. The amount of
interest payable for any partial period shall be computed on the basis of a 360-day year of twelve 30-day months and the days elapsed in any partial month. In the event
that any date on which interest is payable on this Security is not a Business Day, then a payment of the interest payable on such date will be made on the next succeeding day which is a Business Day (and without any interest or other payment in
respect of any such delay) with 

  
 A-1 

 
the same force and effect as if made on the date the payment was originally payable. A “Business Day” shall mean, when used with respect to any Place of Payment, each Monday,
Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in that Place of Payment are authorized or obligated by law, executive order or regulation to close. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the “Regular Record
Date” for such interest, which shall be the June 1 or December 1 (whether or not a Business Day), as the case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid or duly provided for shall
forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest to be fixed by the Trustee, notice of which shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be paid at any time in any other lawful manner not
inconsistent with the requirements of any securities exchange or automated quotation system on which the Securities of this series may be listed or traded, and upon such notice as may be required by such exchange or automated quotation system, all
as more fully provided in such Indenture. 
 [If a Global Security, insert—Payment of the principal of (and premium, if any) and any such
interest on this Security will be made by transfer of immediately available funds to a bank account in the United States of America designated by the Holder in such coin or currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts.] 
 [If a Definitive Security, insert—Payment of the principal of (and premium, if any) and any
such interest on this Security will be made at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, the City and State of New York, in such coin or currency of the United States of America as at the time of
payment is legal tender for payment of public and private debts or subject to any laws or regulations applicable thereto and to the right of the Company (as provided in the Indenture) to rescind the designation of any such Paying Agent, at the
offices of                      in the Borough of Manhattan, The City and State of New York, or at such other offices or agencies as the Company may
designate, by United States Dollar check drawn on, or transfer to a United States Dollar account maintained by the payee with, a bank in The City of New York (so long as the applicable Paying Agent has received proper transfer instructions in
writing at least 10 days prior to the payment date); provided, however, that payment of interest may be made at the option of the Company by United States Dollar check mailed to the addresses of the Persons entitled thereto as such addresses
shall appear in the Security Register or by transfer to a United States Dollar account maintained by the payee with a bank in The City of New York (so long as the applicable Paying Agent has received proper transfer instructions in writing by the
Record Date prior to the applicable Interest Payment Date).] 
 Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication
hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purpose. 

  
 A-2 

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

Dated:                 ,          

 

			
	ROWAN COMPANIES, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

 This is one of the Securities of the series designated 7.375% Senior Notes due 2025 referred to in the within-mentioned
Indenture. 
  

			
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Trustee

		
	By:	 	  

		 	Authorized Signatory

  
 A-3 

 [REVERSE OF NOTE] 

ROWAN COMPANIES, INC. 

7.375% Senior Note due 2025 
 This
Security is one of a duly authorized issue of senior securities of the Company (the “Securities”), issued and to be issued in one or more series under an Indenture, dated as of July 21, 2009, between the Company and U.S. Bank
National Association, a national banking association organized and existing under the laws of the United States of America, as Trustee (the “Trustee,” which term includes any successor trustee under the Indenture), as amended and
supplemented by the Eighth Supplemental Indenture thereto dated as of December 19, 2016 by and among the Company, Rowan UK and the Trustee (such Indenture, as so amended and supplemented being referred to herein as the
“Indenture”), to which Indenture and all indentures supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, obligations, duties and immunities thereunder of the Company, any
Guarantor, the Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the face hereof. 

This Security is the general, unsecured, senior obligation of the Company and is guaranteed pursuant to a guarantee by each person named as a Guarantor in the
Indenture. The Securities Guarantee of each such Guarantor is the general, unsecured, senior obligation of such Guarantor. 
 This Security is redeemable,
in whole or in part, at the Company’s option at any time and from time to time prior to maturity. The redemption price for such redemption at any time on or after March 15, 2025 will be equal to 100% of the principal amount of this
Security or portion hereof to be redeemed plus accrued and unpaid interest to but excluding the redemption date. The redemption price for such redemption at any time prior to March 15, 2025 will be equal to the greater of (a) 100% of the
principal amount of this Security or portion hereof to be redeemed, and (b) as determined by the Quotation Agent (as defined below), the sum of the present values of the remaining scheduled payments of principal and interest in respect of this
Security or portion hereof to be redeemed (not including any portion of those payments of interest accrued as of the date of redemption) discounted to the date of redemption on a semi-annual basis (assuming a
360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined below) plus 50 basis points, plus, in each case, accrued and unpaid interest
to but excluding the date of redemption. 
 This Security is also redeemable, as a whole with all other Securities, following a Change of Control Offer, at
the respective Redemption Price and subject to the conditions set forth in Section 10.8 of the Indenture. 
 For purposes of determining any redemption
price, the following definitions shall apply: 
 “Adjusted Treasury Rate” means, with respect to any date of redemption, the rate per annum
equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue (as defined below), assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price
(as defined below) for the date of redemption. The Adjusted Treasury Rate will be calculated on the third Business Day preceding the redemption date. 

“Comparable Treasury Issue” means the United States Treasury security selected by the applicable Quotation Agent as having a maturity
comparable to the remaining term of this Security that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term
of this Security. 

  
 A-4 

 “Comparable Treasury Price” means, with respect to any date of redemption, (a) the average
of the Reference Treasury Dealer Quotations (as defined below) for the date of redemption, after excluding the highest and lowest Reference Treasury Dealer Quotations, or (b) if the Company obtains fewer than five such Reference Treasury Dealer
Quotations, the average of all such Reference Treasury Dealer Quotations. 
 “Quotation Agent” means the Reference Treasury Dealer (as
defined below) appointed by the Company. 
 “Reference Treasury Dealer” means (a) Merrill Lynch, Pierce, Fenner & Smith
Incorporated, Barclays Capital Inc., and Citigroup Global Markets Inc. (each, a “Primary Treasury Dealer”); provided that, if any of the aforementioned ceases to be a Primary Treasury Dealer, the Company will substitute another Primary
Treasury Dealer; (b) a Primary Treasury Dealer selected by MUFG Securities Americas Inc.; and (c) any other Primary Treasury Dealer selected by the Company. 

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

The Indenture contains provisions for defeasance at any time of (1) the entire indebtedness of this Security or (2) certain restrictive covenants
and Events of Default with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture. 
 If an Event of
Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company
and each Guarantor and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and each Guarantor and the Trustee with the consent of the Holders of a majority in principal amount of
the Securities at the time Outstanding of each series to be affected (with each series voting as a separate class). The Indenture also contains provisions permitting the Holders of specified percentages in principal amount of the Securities of each
series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company and each Guarantor with certain provisions of the Indenture and certain past defaults under the Indenture and their
consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, regardless of whether notation of such consent or waiver is made upon this Security. 
 No Holder of this Security shall have any
right to institute any proceeding, judicial or otherwise, with respect to the Indenture, or for the appointment of a receiver or trustee, or for any other remedy 

  
 A-5 

 
hereunder, unless (a) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of this series, (b) the Holders of
not less than 25% in principal amount of the Outstanding Securities of this series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder, (c) such Holder
or Holders have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request, (d) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity
has failed to institute any such proceeding and (e) no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal
amount of the Outstanding Securities of this series; it being understood and intended that no one or more of such Holders shall have any right in any manner whatsoever by virtue of, or by availing of, any provision of this Indenture to affect,
disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the
equal and ratable benefit of all such Holders. 
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or
impair the obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place(s) and rate, and in the coin or currency, herein prescribed. 

[If a Global Security, insert—This Global Security or portion hereof may not be exchanged for Definitive Securities of this series except in the
limited circumstances provided in the Indenture. The holders of beneficial interests in this Global Security will not be entitled to receive physical delivery of Definitive Securities except as described in the Indenture and will not be considered
the Holders thereof for any purpose under the Indenture.] 
 [If a Definitive Security, insert—As provided in the Indenture and subject to
certain limitations therein set forth, the transfer of this Security is registerable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in The City of New York, or, subject
to any laws or regulations applicable thereto and to the right of the Company (limited as provided in the Indenture) to rescind the designation of any such transfer agent, at the offices of
                     in the Borough of Manhattan, The City of New York or at such other offices or agencies as the Company may designate, duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities
of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees.] 

The Securities of this series are issuable only in registered form without coupons in denominations of U.S. $2,000 and any integral multiple of U.S. $1,000 in
excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same. 
 No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Prior to
due presentment of this Security for registration of transfer, the Company, any Guarantor, the Trustee and any agent of the Company, a Guarantor or the Trustee may treat the Person in whose name this Security is registered as the owner hereof for
all purposes, regardless of whether this Security be overdue, and none of the Company, any Guarantor, the Trustee nor any such agent shall be affected by notice to the contrary. 

  
 A-6 

 No recourse under or upon any obligation, covenant or agreement of or contained in the Indenture or of or
contained in any Security, or the Securities Guarantee endorsed thereon, or for any claim based thereon or otherwise in respect thereof, or in any Security or in the Securities Guarantee, or because of the creation of any indebtedness represented
thereby, shall be had against any incorporator, shareholder, member, officer, manager or director, as such, past, present or future, of the Company or any Guarantor or of any successor Person, either directly or through the Company or any Guarantor
or any successor Person, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment, penalty or otherwise; it being expressly understood that all such liability is hereby expressly waived and released by
the acceptance hereof and as a condition of, and as part of the consideration for, the execution of the Indenture and the issuance of the Securities. 

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

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

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

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

 

									
	  
	 		 	  

				
	Dated:	 	  
	 		 	  

				
	  
	 		 		  	
		 		 		 	(Signature)

  

			
	 Signature Guarantee:
	 	  

 (Participant in a Recognized Signature 

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

  
 A-7 

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

SCHEDULE OF INCREASES OR DECREASES 

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

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

  
 A-8 

 SECURITIES GUARANTEE NOTATION 

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

 

			
	Guarantor:
	
	ROWAN COMPANIES PLC
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	The above signatory for Rowan Companies plc signed in the presence of:
	
	  

	
	Print name of witness:
	Address:

  
 A-9Ex 10.1_12.18.16

		

			EXECUTION VERSION

		

		

			 

		

		

			 

		

		

			 

		

		
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			﻿
		

		
			
		

		
			December  14, 2016
		

		
			Pershing Square Capital Management, L.P.
888 Seventh Avenue, 42nd Floor
New York, New York  10019
Attn:  William A. Ackman
		

		
			Ladies and Gentlemen:
		

		
			Chipotle Mexican Grill, Inc. (the “Company”), on the one hand, and Pershing Square Capital Management, L.P. (“Pershing Square”), as investment advisor of the funds it advises (such funds, together with Pershing Square, collectively, the “Pershing Square Group”), on the other hand, have mutually agreed to the terms contained in this letter agreement (this “Letter Agreement”).  For purposes of this Letter Agreement, we refer to each of the Company and the Pershing Square Group as a “Party” and, collectively, as the “Parties.”
		

			
	
			
				 1.
			

			
	
			
			Board Matters.  

		
			(a)As of the date of this Letter Agreement, the board of directors (“Board of Directors”) of the Company has duly appointed Ali Namvar, Matthew H. Paull, Robin Hickenlooper and Paul Cappuccio (the “New Directors”) as directors of the Company with terms expiring at the Company’s next annual meeting of stockholders (including any adjournments or postponements thereof, the “2017 Annual Meeting”) and expanded the size of the Board to permit the appointment of the New Directors. 
		

		
			(b)Following the execution of this Letter Agreement, the Board of Directors, collectively and in good faith, shall determine Board committee memberships for the New Directors taking into account their relevant experience and the needs of the Company.
		

		
			(c)The Company will include Ali Namvar and Matthew H. Paull on the slate of nominees recommended by the Board of Directors in the Company’s proxy statement and on its proxy card relating to the 2017 Annual Meeting and the 2018 annual meeting of stockholders (including any adjournments or postponements thereof, the “2018 Annual Meeting”), subject to Ali Namvar and Matthew H. Paull (i) providing to the Company all 
		
		
 

		

			

		

		

			 

		

 

		information regarding Ali Namvar and Matthew H. Paull that the Company is entitled to receive from all other directors regarding each of them and is required to be included in a proxy statement filed pursuant to the proxy rules of the Securities and Exchange Commission (the “SEC”), including consents to be named in the Company’s proxy statement for the applicable annual meeting and to serve as a director of the Company if elected and (ii) executing all documents required to be executed by directors nominated for election at the 2017 Annual Meeting and the 2018 Annual Meeting, such documents to be in substantially the same form as documents executed and provided by directors in connection with the prior year’s annual meeting of stockholders and provided by the Company to Pershing Square prior to the date hereof and prior to the applicable annual meeting (such conditions, the “Director Nomination Conditions”).  Subject to the Director Nomination Conditions, the Company shall use its reasonable best efforts to cause the election of Ali Namvar and Matthew H. Paull at such meeting (including listing such persons in the proxy statement and proxy card prepared, filed and delivered in connection with such meeting and advocating that the Company’s stockholders vote in favor of the election of such individuals along with all other Company nominees (and otherwise supporting each of them for election in a manner no less rigorous and favorable than the manner in which the Company supports its other nominees in the aggregate)).  The Pershing Square Group acknowledges that the policies and procedures applicable to other directors (collectively, “Company Policies”) will be applicable to Ali Namvar and Matthew H. Paull as well during their respective terms of service.  The Company represents and warrants that all Company Policies currently in effect are publicly available on the Company’s website or described in the Company’s proxy statement filed with the SEC on March 24, 2016, or have otherwise been provided to the Pershing Square Group.  The Company will not alter or adopt any Company Policies or its by-laws in a manner that would interfere with the purpose of this Letter Agreement.

		
		
			(d)If the Pershing Square Group’s beneficial ownership of common stock, par value $0.01 per share, of the Company (“Common Stock”) is less than 5.0% (the “Minimum Ownership Requirement”) of the outstanding Common Stock (other than as a result of an issuance of shares by the Company or similar transaction), the Pershing Square Group shall (i) promptly notify the Company that the Pershing Square Group ceases to satisfy the Minimum Ownership Requirement and (ii) cause Ali Namvar to tender his resignation from the Board of Directors. Any written resignation tendered by Ali Namvar to the Board of Directors shall be deemed immediately effective and be deemed accepted by the Board of Directors immediately.  In furtherance of the foregoing, the Pershing Square Group represents and warrants to the Company that it has the power to, and shall, ensure that the foregoing resignation occurs and agree that the Board may treat Ali Namvar as not validly on the Board of Directors in the event the Minimum Ownership Requirement ceases to be met, including if Pershing Square Group fails to cause Ali Namvar to leave the Board. For the avoidance of doubt, the Company’s obligations under paragraphs 1(c) and 1(f) of this Letter Agreement shall cease once the Pershing Square Group ceases to meet the Minimum Ownership Requirement.  Upon the request of the Company, the Pershing Square Group will apprise the Company of its beneficial ownership with respect to the Company’s securities so that the Company may assess whether this Section 1(d) has been triggered.
		

		

		

		 

		

			-2-

		

		

			 

		

 

		(e)At the 2017 Annual Meeting and the 2018 annual meeting of stockholders (including any adjournments or postponements thereof, the “2018 Annual Meeting”),  each member of the Pershing Square Group will (i) cause, in the case of all shares of Common Stock owned of record, and (ii) cause the record owner, in the case of all shares of Common Stock beneficially owned but not owned of record, in each case directly or indirectly, by it or by any of its controlled affiliates, as of the record date for the applicable annual meeting, (x) to be present for quorum purposes and (y) voted in favor of all nominees of the Company in its proxy statement for the applicable annual meeting for election to the Board of Directors at the applicable annual meeting and in favor of routine management proposals (including compensation-related matters) and against (A) any stockholder nominations for director which are not recommended by the Board of Directors for election at the applicable annual meeting, (B) any proposals or resolutions to remove any member of the Board of Directors and (C) any other proposals that are not recommended by the Board of Directors.  Except as required by applicable law or the Company’s organizational documents, the Company shall not call or hold any interim special meeting of stockholders during which any election of directors would occur. 
		

		
			(f)If prior to the Standstill Termination Date Ali Namvar is unable to serve as a member of the Board of Directors before his term expires (other than due to (x) a resignation from the Board of Directors pursuant to Section 1(d) or (y) a resignation from the Board of Directors over a disagreement with the Board or management), the Pershing Square Group shall be entitled to have another individual appointed to the Board of Directors (a “Successor Director”) who is (i) acceptable to the Nominating and Corporate Governance Committee and the Board of Directors,  acting in good faith, (ii) has no disqualifying attributes relating to his or her reputation, integrity and competence and has experience relevant to serving as a director of the Company, (iii) meets all director independence and other standards of the New York Stock Exchange (the “NYSE”) and the SEC and (iv) has provided the other customary materials and information (including completion of D&O questionnaires, participation in a background check and other customary process such as interviews to the extent reasonably requested by the Board or the Nominating and Corporate Governance Committee), to serve as a director of the Company in place of Ali Namvar (with it being understood that (A) the appointment of any individual satisfying the criteria set forth above shall not be unreasonably denied and (B) if a proposed replacement is not appointed to the Board of Directors,  the Pershing Square Group shall be entitled to continue proposing replacements for consideration by the Board) and all references to Ali Namvar, for purposes of this Letter Agreement, shall be deemed references to such Successor Director.
		

		
			(g)The Company shall notify the Pershing Square Group in writing no less than 45 calendar days before the advance notice deadline set forth in the Company’s by-laws as then in effect for stockholders to nominate non-proxy access candidates for the 2019 annual meeting of stockholders (such advance notice deadline, the “2019 Advance Notice Bylaws Deadline” and such meeting, including any adjournments or postponements thereof, the “2019 Annual Meeting”)  whether Ali Namvar and Matthew H. Paull are to be nominated by the Company for election as directors at such meeting, subject to the Director Nomination Conditions as would be applicable to the 2019 Annual Meeting.  Upon such notification, Pershing Square shall notify the Company in writing no less than 30 calendar 
		
		
 

		

			-3-

		

		

			 

		

 

		days before the 2019 Advance Notice Bylaws Deadline if Ali Namvar has agreed to stand for election as a director at the 2019 Annual Meeting.  If so notified that Ali Namvar has agreed to stand for election as a director at the 2019 Annual Meeting, the Company shall use its reasonable best efforts to cause the election of Ali Namvar and Matthew H. Paull (to the extent Matthew H. Paull agree to stand for election) at such meeting (including listing such persons in the proxy statement and proxy card prepared, filed and delivered in connection with such meeting and advocating that the Company’s stockholders vote in favor of the election of such individuals along with all other Company nominees (and otherwise supporting each of them for election in a manner no less rigorous and favorable than the manner in which the Company supports its other nominees in the aggregate)). 

		
		
			﻿
		

		
			(h)Until the Standstill Termination Date, the Pershing Square Group will not and shall cause its controlled affiliates, managing members, advisory board members, partners (other than partners who are solely limited partners), directors, officers and employees not to, and will direct its agents and representatives not to, directly or indirectly, absent prior written consent by the Board of Directors or the Company: (i) purchase or cause to be purchased or otherwise agree to acquire beneficial ownership of Common Stock such that, giving effect to such purchase or acquisition, the Pershing Square Group’s beneficial ownership of Common Stock would exceed 12.9% of the outstanding Common Stock; (ii) enter into or maintain any economic, compensatory, pecuniary or other arrangements with any directors or nominees for director of the Company that depend, directly or indirectly, on the performance of the Company or its stock price; provided,  however,  that, solely with respect to compensation arrangements for an officer, managing member, partner, employee or advisory board member of the Pershing Square Group who is a director or a director nominee, arrangements based on the value of the funds the Pershing Square Group manages will not be considered to be arrangements covered by this Section 1(h); (iii) other than consistent with the Board of Directors’ recommendation or at the Board of Directors’ direction, solicit proxies, consents or other authority as applicable of stockholders of the Company (including any solicitation asking stockholders to withhold votes on a matter or to vote on a matter), conduct any other type of referendum (binding or non-binding) of stockholders of the Company, become a “participant” (as such term is defined in Instruction 3 to Item 4 of Schedule 14A promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) in any such solicitation or referendum or encourage, assist, advise or influence any other person or assist any third party in so doing, or publicly disclose how it intends to vote or act on any such matter; provided, however, that Pershing Square may publicly disclose how it intends to vote in any such proxy solicitation or referendum if and to the extent required by applicable subpoena, legal process, other legal requirement or the rules of any securities exchange to which it is subject (except for such requirement that arises as a result of the actions of the Pershing Square Group otherwise in violation of this Letter Agreement); (iv) seek to call a special meeting of stockholders or take action by the written consent of the stockholders or submit or present at any annual or special meeting of stockholders any proposal (binding or non-binding) for consideration for action by stockholders or propose any nominee for election to the Board of Directors or seek representation on the Board of Directors or the removal of any member of the Board of Directors; (v) institute any litigation against the Company, its directors or its officers, make any “books and records” demands against the Company or make 
		
		
 

		

			-4-

		

		

			 

		

 

		application or demand to a court or other person for an inspection, investigation or examination of the Company or its subsidiaries or affiliates (other than (x)  with respect to“books and records” requests on the Company (and litigation to enforce same) pursuant to Section 220(d) of the Delaware General Corporation Law brought in good faith by Ali Namvar or Matthew H. Paull as directors of the Company acting in such capacity and not at the behest of the Pershing Square Group or (y) such litigation against the Company as may be necessary to enforce the terms of this Letter Agreement); (vi) make, encourage, facilitate or disclose support of (except, solely with respect to disclosure, to the extent required by applicable subpoena, legal process, other legal requirement or the rules of any securities exchange to which it is subject, unless such requirement arises as a result of the actions of the Pershing Square Group otherwise in violation of this Letter Agreement), effect or seek to effect, assist or participate in, any takeover proposal for the Company or its subsidiaries or other extraordinary transaction involving the Company or its subsidiaries (including a tender offer, merger, acquisition, sale or purchase of assets or securities, reorganization, restructuring, recapitalization or other similar transaction); enter into any agreements with respect to the Company with any potential or actual bidder (or financing source thereof) for the Company or its subsidiaries (it being understood that the foregoing shall not restrict the Pershing Square Group from tendering shares, receiving payment for shares or otherwise participating in any such transaction on the same basis as other stockholders of the Company, or from participating in any such transaction that has been approved by the Board of Directors); (vii) make any public proposals for changes in or recommendations concerning the Company’s strategies, extraordinary or other transactions (including the ones listed in Section 1(h)(vi) above), Board of Directors or management items, or other matters relating to the Company’s business; or act, alone or with others, to seek to control the management, Board of Directors, policies or strategies of the Company; (viii) seek or request an amendment, waiver or release of any of the provisions of Section 1(e) or this Section 1(h); provided,  however, the Pershing Square Group may make a non-public request not reasonably expected to become public or require public disclosure to the Board of Directors for the Company to waive any restrictions contained in this Section 1(h); (ix) grant any proxy, consent or other authority to act as to any shares of Common Stock with respect to any matters (other than to (x) the Company’s named proxies using the Company’s proxy card and (y) on a third party’s proxy card in connection with  extraordinary or other transactions (including the ones listed in Section 1(h)(vi) above)), deposit any shares of Common Stock in a voting trust or subject any shares of Common Stock to a voting agreement or other arrangement of similar effect (excluding customary brokerage accounts, margin accounts, prime brokerage accounts and the like); (x) form any “groups” as defined pursuant to Section 13(d) of the Exchange Act with respect to any of the foregoing or with any third parties with respect to the Company, or work with or encourage any third parties to do any of the foregoing; or (xi) other than in sale transactions on the NYSE or through a broker or dealer where the identity of the purchaser is not known, sell or agree to sell directly or indirectly, through swap or hedging transactions or otherwise, Common Stock or any derivatives relating to Common Stock to any third party that either (x) has filed a Schedule 13D with respect to the Company or (y) has run (or publicly announced an intention to run) a proxy contest with respect to another company in the past three years (but, in the case of this clause (y), only if the Pershing Square Group knows, after reasonable inquiry, that the third party has, or will as a result of the transaction have, beneficial ownership of more than 5% of the Common Stock).

		
		 

		

			-5-

		

		

			 

		

 

			
	
			
				 2.
			

			
	
			
			Registration Rights.  Promptly following the execution of this Letter Agreement, the Company and the Pershing Square Group shall enter into a registration rights agreement granting to the Pershing Square Group customary and reasonable registration rights with respect to shares of Common Stock beneficially owned by the Pershing Square Group, which shall include customary and reasonable limitations on such registration rights.

			
	
			
				 3.
			

			
	
			
			Confidentiality.  Ali Namvar and, for so long as Ali Namvar remains a director of the Company, Matthew H. Paull, may share confidential information with the Pershing Square Group regarding the Company in accordance with and subject to a confidentiality agreement, which the Pershing Square Group shall enter into with the Company (the “Confidentiality Agreement”), dated the date hereof, the form of which is attached as Exhibit A hereto. 

			
	
			
				 4.
			

			
	
			
			Trading in Company Securities.  Except as the Parties may otherwise agree, for so long as an officer, director, consultant, partner (other than a partner who is solely a limited partner) or employee of the Pershing Square Group remains a director of the Company, the Pershing Square Group will not, other than through a trading plan established pursuant to Rule 10b-5-1 under the Exchange Act, trade in Company securities (including Common Stock) during trading blackout periods generally applicable to directors under the blackout calendar as currently in effect (as it may reasonably be modified from time to time on a good faith basis).  The Pershing Square Group will advise the Company as to its compliance with the Company’s pledging and hedging policies applicable to directors with respect to shares of Common Stock beneficially owned by the Pershing Square Group. The Pershing Square Group will work in good faith with the Company regarding engagement with proxy advisory services and shareholders to the extent requested by the Company.

			
	
			
				 5.
			

			
	
			
			Certain Actions.  

		
			(a)Until the Standstill Termination Date, the Board of Directors will not utilize committees of the Board of Directors (including by the formation of an “executive” or similar committee) for the purpose of discriminating against Ali Namvar or Matthew H. Paull in order to limit any of their participation in substantive deliberations of the Board of Directors, except that the Board of Directors may utilize committees in order to limit the participation of any such director if a majority of the independent directors (for this purpose not counting the director who may have a conflict of interest in the numerator or denominator) reasonably determines in good faith (based upon advice from outside counsel) that doing so is necessary due to a conflict of interest with respect to such director with respect to such deliberations;  provided, that such director may only be limited from participating in that portion (and only that portion) of deliberations in which his or her participation would pose a conflict of interest and for the avoidance of doubt, shall be permitted to participate to the maximum extent reasonably appropriate in all other deliberations like other directors.
		

		
			(b)The Company agrees not to adopt or enter into any stockholder rights plan or similar agreement or arrangement that would prohibit, impair or frustrate the ability of the Pershing Square Group to acquire beneficial ownership of Common Stock to the extent permitted by Section 1(h)(i) of this Letter Agreement.
		

		 

		

			-6-

		

		

			 

		

 

			
	
			
				 6.
			

			
	
			
			Non-Disparagement. Until the Standstill Termination Date, (a) the Pershing Square Group agrees that it will not, and will cause its controlled affiliates, managing members, advisory board members, partners (other than partners who are solely limited partners), directors, officers and employees not to, and will direct its agents and representatives in their capacity as such not to, make, or cause to be made, any statement or announcement (including social media or in any written communication to the Company) that constitutes an ad hominem attack on, or disparages, the Company, its officers, directors, advisory board members, or employees or any person who has served as an officer, director or employee of the Company on or following the date hereof in any public communication or in any communication that would reasonably be expected to enter the public domain and (b) the Company agrees that it will not, and will cause its controlled affiliates, directors,  officers and employees (but only to the extent acting at the direction of a Company director or officer) not to, and will direct its agents and representatives in their capacity as such not to, make, or cause to be made, any statement or announcement (including social media or in any written communication to any member of the Pershing Square Group)  that constitutes an ad hominem attack on, or disparages, any member of the Pershing Square Group,    their respective officers, directors, advisory board members, partners or employees, or any person who has served as an officer, director, advisory board member, partner or employee of any member of the Pershing Square Group on or following the date hereof in any public communication or in any communication that would reasonably be expected to enter the public domain.  The foregoing shall not prevent (i) the making of any factual statement in the event that either Party or any of its representatives are required to make that statement by applicable subpoena, legal process, other legal requirement or the rules of any securities exchange to which it is subject or (ii) a response by a Party to any statement made by the other Party or any of its controlled affiliates, managing members, directors,  officers, advisory board members, partners (other than partners who are solely limited partners), employees, agents or representatives which is in violation of this Section 6. 

			
	
			
				 7.
			

			
	
			
			Press Release.  The Parties agree that the Company will issue the press release attached to this Letter Agreement as Exhibit B promptly following the execution and delivery of this Letter Agreement by the Parties.  The Company acknowledges that the Pershing Square Group may file certain provisions of this Letter Agreement and the Press Release as exhibits to its Schedule 13D pursuant to an amendment and the Pershing Square Group agrees that the Company will have the opportunity to review such amendment in advance of filing and that the Pershing Square Group will consider in good faith any changes requested by the Company to the foregoing filing.

			
	
			
				 8.
			

			
	
			
			Power and Authority of the Company.  The Company represents and warrants to the Pershing Square Group that (a) the Company has the corporate power and authority to execute this Letter Agreement and to bind it thereto, (b) this Letter Agreement has been duly and validly authorized, executed and delivered by the Company, constitutes a valid and binding obligation and agreement of the Company, and is enforceable against the Company in accordance with its terms, and (c) the execution, delivery and performance of this Letter Agreement by the Company does not and will not violate or conflict with (i) any law, rule, regulation, order, judgment or decree applicable to the Company, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or 
		

		 

		

			-7-

		

		

			 

		

 

			result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which the Company is a party or by which it is bound.

			
	
			
				 9.
			

			
	
			
			Power and Authority of the Pershing Square Group.  Each member of the Pershing Square Group represents and warrants to the Company that (a) Pershing Square, as the authorized signatory of such member of the Pershing Square Group, has the power and authority to execute this Letter Agreement and to bind such member of the Pershing Square Group thereto, (b) this Letter Agreement has been duly authorized, executed and delivered by such member of the Pershing Square Group, constitutes a valid and binding obligation of such member of the Pershing Square Group, and is enforceable against each such member of the Pershing Square Group in accordance with its terms, (c) the execution of this Letter Agreement by such member of the Pershing Square Group does not and will not violate or conflict with (i) any law, rule, regulation, order, judgment or decree applicable to such member of the Pershing Square Group, or (ii) result in any breach or violation of or constitute a default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document, agreement, contract, commitment, understanding or arrangement to which such member is a party or by which it is bound and (d) the Pershing Square Group beneficially owns in the aggregate 2,882,463 shares of Common Stock and does not have any other economic exposure to or voting power with respect to the Company. The Pershing Square Group has delivered to the Company a document summarizing the duration of certain of its publicly-disclosed investments in publicly traded companies.

			
	
			
				 10.
			

			
	
			
			Termination.  Each Party's obligations under this Letter Agreement will extend until, and terminate at, 12:00 a.m., Eastern time, on the later of (a) thirty calendar days after the date that neither Ali Namvar (or any Successor Director) nor Matthew H. Paull (if he becomes an officer, managing member, partner (other than solely a limited partner) or employee of the Pershing Square Group or is providing information about the Company to the Pershing Square Group) serve on the Board of Directors and (b) the date that is 30 calendar days prior to the 2019 Advance Notice Bylaws Deadline  (such date, the “Standstill Termination Date”);  provided, that if the Company notifies the Pershing Square Group that it will not be nominating Ali Namvar for election to the Board at the 2019 Annual Meeting (or if the Company notifies the Pershing Square Group that it will so nominate and the Pershing Square Group rejects such nomination in accordance with Section 1(g)), the Standstill Termination Date shall be the later of (i) the date that is five calendar days after the date that Ali Namvar (and, if he becomes an officer, managing member, partner (other than solely a limited partner) or employee of the Pershing Square Group or is providing information about the Company to the Pershing Square Group, Matthew H. Paull) no longer serves on the Board of Directors and (ii) the date that is 30 calendar days prior to the 2019 Advance Notice Bylaws Deadline; provided,  further, that if the Company notifies the Pershing Square Group that it will be nominating Ali Namvar for election to the Board of Directors at the 2019  Annual Meeting (and the Pershing Square Group does not reject such nomination in accordance with Section 1(g)), the Standstill Termination Date shall be 
		

		 

		

			-8-

		

		

			 

		

 

			the later of (i) the date referred to in clause (a) above and (ii) the date that is the day immediately following the certification of results for the 2019 Annual Meeting.  Notwithstanding the foregoing, the Confidentiality Agreement contemplated by Section 3 shall survive in accordance with its terms.

			
	
			
				 11.
			

			
	
			
			Fiduciary Duties.    Nothing in this Letter Agreement will be deemed to require the violation of the fiduciary duties of any director of the Company under Delaware law in the director’s capacity as such.

			
	
			
				 12.
			

			
	
			
			Counterparts.  This Letter Agreement may be executed in two or more counterparts, each 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 the other Party (including by means of electronic delivery or facsimile).

			
	
			
				 13.
			

			
	
			
			Specific Performance.  Each Party acknowledges and agrees that irreparable injury to the other Party hereto would occur in the event that any of the provisions of this Letter Agreement were not performed in accordance with their specific terms or were otherwise breached and that money damages are not an adequate remedy for such a breach.  It is accordingly agreed that each Party may be entitled to specific enforcement of, and injunctive relief to prevent any violation of, the terms hereof.  Each Party agrees to waive any bonding requirement under any applicable law, in the case any other party seeks to enforce the terms by way of equitable relief. 

			
	
			
				 14.
			

			
	
			
			Applicable Law and Jurisdiction.  This Letter Agreement will be governed by and enforced in accordance with the laws of the State of Delaware without reference to conflicts of laws principles.  Each of the Parties hereto irrevocably agrees that any legal action or proceeding based on or arising out of this Letter Agreement will be brought exclusively in the Court of Chancery of the State of Delaware (or, if such court declines to accept jurisdiction, any state or federal court within the State of Delaware).  Each of the Parties irrevocably waives the right to trial by jury in any such action or proceeding.  Each of the Parties hereto hereby irrevocably submits to the personal jurisdiction of the aforesaid courts, and irrevocably waives any argument that such courts are an inconvenient or improper forum.   Each Party  consents to service of process by a reputable overnight delivery service, signature requested, to the address of such party’s principal place of business or as otherwise provided by applicable law.

			
	
			
				 15.
			

			
	
			
			Notice.  All notices, consents, requests, instructions, approvals and other communications provided for herein and all legal process in regard hereto shall be in writing and shall be deemed validly given, made or served, (a) if given by telecopy or email, when such telecopy is transmitted to the telecopy number set forth below or sent to the email address set forth below, as applicable, and the appropriate confirmation is received or (b) if given by any other means, when actually received during normal business hours at the address specified in this section:

		
			If to the Company:

		

		

		

		 

		

			-9-

		

		

			 

		

 

		Chipotle Mexican Grill, Inc. 
1401 Wynkoop Street, Suite 500
Denver, CO 80202
Attention:  General Counsel
		

		
			Email: cmessner@messner.com
Facsimile: (303) 623-0552

With a copy to (which shall not constitute notice):

Wachtell, Lipton, Rosen & Katz
51 West 52nd Street
New York, NY 10019
Attention: Daniel A. Neff; David A. Katz; Sabastian V. Niles
		

		
			Email: DANeff@WLRK.com;  DAKatz@WLRK.com; SVNiles@wlrk.com
Facsimile: (212) 403-2366
		

		
			﻿
		

		
			If to Pershing Square:
		

		
			
Pershing Square Capital Management, L.P.
888 Seventh Avenue, 42nd Floor
New York, NY 10019
		

		
			Attention: Stephen Fraidin; Steve Milankov
		

		
			Email: fraidin@persq.com;  milankov@persq.com
		

		
			Facsimile: (212) 286-1133
		

		
			﻿
		

		
			With a copy to (which shall not constitute notice):
		

		
			﻿
		

		
			Cadwalader, Wickersham & Taft LLP
		

		
			One World Financial Center
		

		
			New York, New York 10281
		

		
			Attention: Richard M. Brand
		

		
			Email: richard.brand@cwt.com
		

		
			Facsimile: (212) 504-6666
		

		
			﻿
		

			
	
			
				 16.
			

			
	
			
			 Entire Agreement.  This Letter Agreement, including Exhibit  A and Exhibit B attached to this Letter Agreement, contains the entire understanding of the Parties with respect to the subject matter hereof.  

		
			[Signature Page Follows]
		

		
			 
		

		

		

		 

		

			-10-

		

		

			 

		

 

		

			 

		

		If the terms of this Letter Agreement are in accordance with your understanding, please sign below and this Letter Agreement will constitute a binding agreement among us.
		

		
			CHIPOTLE MEXICAN GRILL, INC. 
		

		
			By:_______________________________________________________
Name:
Title:

		

		
			Acknowledged and agreed to as of the date
first written above:
		

		
			﻿
		

		
			PERSHING SQUARE CAPITAL MANAGEMENT, L.P.
		

		
			By:  PS Management GP, LLC, its General Partner

By:

Name:  William A. Ackman
Title:    Managing Member 
		

		
			 
		

		

		

		 

		

			[Signature Page to Letter Agreement]

		

		

			 

		

 

		

			 

		

		﻿
		

		
			EXHIBIT A 

FORM OF CONFIDENTIALITY AGREEMENT
		

		 

		

			1

		

 

		

			 

		

		FORM OF CONFIDENTIALITY AGREEMENT
		

		
			﻿
		

		
			[●]

		

		
			To:Pershing Square Capital Management, L.P. (“Pershing Square”), as investment advisor of the funds it advises (such funds, together with Pershing Square collectively, the “Pershing Square Group” or “you”)
		

		
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			Ladies and Gentlemen:
		

		
			This confidentiality agreement (this “Confidentiality Agreement”) shall become effective upon the appointment of Ali Namvar and Matthew H. Paull to the Board of Directors (the “Board of Directors”) of Chipotle Mexican Grill, Inc. (the “Company”).  Capitalized terms used but not otherwise defined herein shall have the meanings given to such terms in the letter agreement (the “Letter Agreement”), dated [●], among the Company and the Pershing Square Group. The “PS Partner Appointee” shall mean Ali Namvar or any Successor Director who is at the time of appointment an officer, director, consultant, partner (other than a partner who is solely a limited partner) or employee of the Pershing Square Group.  The Company understands and agrees (for your benefit and for the benefit of the PS Partner Appointee) that, subject to the terms of, and in accordance with, this Confidentiality Agreement, Matthew H. Paull and the PS Partner Appointee may, if and to the extent they desire to do so, confidentially disclose information obtained while serving as a member of the Board of Directors to you and the Specified Pershing Square Personnel (as hereinafter defined), and may confidentially discuss such information with such persons, subject to the terms and conditions of this Confidentiality Agreement.  As a result, you may receive certain non-public information regarding the Company.  You acknowledge that this information is proprietary to the Company and may include strategic, business or financial planning information, financial results, financial projections, and forecasts, information about the deliberations of the Board of Directors or its committees as a whole or of individual members of the Board of Directors or its committees or members of the Company’s management, advice received by such parties or individuals from the Company’s attorneys, accountants, consultants or other advisors, trade secrets or other business information the disclosure of which could harm the Company. 
		

		
			In consideration for, and as a condition of, the information being furnished to you and, subject to the restrictions in Section 2 hereof, managing members, partners (other than a partner who is solely a limited partner), directors, officers and employees of the Pershing Square Group and its outside counsel (other than anyone who is at the time a director of the Company, collectively, the “Specified Pershing Square Personnel”), you agree to treat any and all information concerning or relating to the Company or any of its subsidiaries or affiliates that is furnished to you or the Specified Pershing Square Personnel (regardless of the manner in which it is furnished, including in written or electronic format or orally, gathered by visual inspection or otherwise) by Matthew H. Paull or the PS Partner Appointee or by or on behalf of the Company or any Company Representatives (as defined below) (including without limitation information furnished by or on behalf of the Company or any Company Representative to Matthew H. Paull or the PS Partner Appointee who in turn furnishes it to you or the Specified Pershing Square Personnel), together with any notes, analyses, reports, models, compilations, studies, interpretations, documents, 
		

		 

		

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		records or extracts thereof containing, referring, relating to, based upon or derived from such information, in whole or in part (collectively, but subject to Section 1 below, “Company Information”), in accordance with the provisions of this Confidentiality Agreement, and to take or abstain from taking the other actions hereinafter set forth.
		

		
			1.  The term “Company Information” does not include information that (a) is or has become generally available to the public other than as a result of a direct or indirect disclosure by you, Matthew H. Paull, the PS Partner Appointee or the Specified Pershing Square Personnel or (b) was within possession of the PS Partner Appointee, Matthew H. Paull, you or any of the Specified Pershing Square Personnel on a non-confidential basis prior to its being furnished to the PS Partner Appointee, Matthew H. Paull, you or any Specified Pershing Square Personnel by or on behalf of the Company or its agents, representatives, attorneys, advisors, directors (other than the PS Partner Appointee and Matthew H. Paull), officers, or employees (collectively, the “Company Representatives”), (c) is received on a non-confidential basis from a source other than Matthew H. Paull, the PS Partner Appointee, the Company or any of the Company Representatives or (d) has been or is independently developed by you or any of the Specified Pershing Square Personnel without the benefit or use of or reference to any Company Information and without breaching this Confidentiality Agreement;  provided, that in the case of clauses 1(b)-(d) above, the person giving you or any of the Specified Pershing Square Personnel such information was not known by you or the Specified Pershing Square Personnel, after reasonable inquiry, to be bound by an obligation of confidentiality to the Company or any of the Company Representatives with respect to such information at the time the information was disclosed to you or the Specified Pershing Square Personnel.  
		

		
			2.  You and the Specified Pershing Square Personnel will, and you will cause the Specified Pershing Square Personnel to, (a) keep the Company Information strictly confidential and (b) not disclose any of the Company Information in any manner whatsoever without the prior written consent of the Company and (c) not use the Company Information for any competitive purpose; provided,  however, that you and the Specified Pershing Square Personnel may privately disclose any of such information to the Specified Pershing Square Personnel (i) who need to know such information for the purpose of performing their duties to you with respect to your investment in the Company and (ii) who are informed by you of the confidential nature of such information and agree to abide for the benefit of the Company to the terms hereof; provided,  further, that you will be responsible for any violation of this Confidentiality Agreement by any former or current Specified Pershing Square Personnel. Nothing in this Confidentiality Agreement shall restrict the ability of the Pershing Square Group to engage in a proxy contest following the Standstill Termination Date so long as the Pershing Square Group (and the Specified Pershing Square Personnel) maintains the confidentiality of the Company Information pertaining to the business of the Company, it being acknowledged that the Pershing Square Group (and the Specified Pershing Square Personnel) shall be entitled pursuant to the terms of this Agreement to disclose that portion of (and only such portion of) Company Information required to be disclosed by applicable law in order to engage in such a proxy contest.  It is understood and agreed that the PS Partner Appointee may disclose Company Information to you or the Specified Pershing Square Personnel (including in-house counsel at the Pershing Square Group and to outside counsel of the Pershing Square Group at Cadwalader, Wickersham & Taft LLP) who satisfy the requirements of this Section 2 to the extent that such disclosure would not reasonably result in a waiver of attorney-client privilege,  
		

		 

		

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		work product doctrine or other similar legal privilege or legal immunity applicable to such Company Information.  
		

		
			3.  In the event that you or any of the Specified Pershing Square Personnel are required by applicable subpoena, legal process or other legal requirement, or formally requested in an audit or examination by a regulator or self-regulatory organization with jurisdiction to regulate or oversee any aspect of your business (“Regulator”), to disclose any of the Company Information, you will, to the extent legally permissible, promptly notify the Company in writing in advance by facsimile and electronic mail so that the Company may seek a protective order or other appropriate remedy (and if the Company seeks such an order, you will provide such cooperation as the Company shall reasonably request), at its cost and expense.  Following notification by you to the Company (or before such notification if prior notification is not legally permissible), you may honor any such subpoena, legal process, other legal requirement or Regulator’s request that requires discovery, disclosure or production of the Company Information if and solely to the extent that (a) you produce or disclose only that portion of the Company Information which your legal counsel advises you in writing (which, for the avoidance of doubt, need not be in the form of a formal opinion) is legally required to be so produced or disclosed and you inform the recipient of such Company Information of the existence of this Confidentiality Agreement and the confidential nature of such Company Information and you cooperate with the Company, at the Company’s cost and expense, if it decides to seek a protective order or other relief to prevent the disclosure of the Company Information or to obtain reliable assurance that confidential treatment will be afforded the Company Information; or (b) the Company consents in writing to having the Company Information produced or disclosed pursuant to such subpoena, legal process, other legal requirement or Regulator’s request.  In no event will you or any of the Specified Pershing Square Personnel oppose action by the Company to obtain a protective order or other relief to prevent the disclosure of the Company Information or to obtain reliable assurance that confidential treatment will be afforded the Company Information.  For the avoidance of doubt, it is understood that there shall be no “legal requirement” requiring you to disclose any Company Information solely by virtue of the fact that, absent such disclosure, you would be prohibited from purchasing, selling, or engaging in derivative or other voluntary transactions with respect to the Common Stock of the Company or otherwise proposing or making an offer to do any of the foregoing, or you would be unable to file any proxy materials in compliance with Section 14(a) of the Exchange Act or the rules promulgated thereunder.
		

		
			4.  You acknowledge that (a) none of the Company or any of the Company Representatives makes any representation or warranty, express or implied, as to the accuracy or completeness of any Company Information, and (b) none of the Company or any of the Company Representatives shall have any liability to you or to any of the Specified Pershing Square Personnel relating to or resulting from the use of the Company Information or any errors therein or omissions therefrom. You and the Specified Pershing Square Personnel (or anyone acting on your or their behalf) shall not directly or indirectly initiate contact or communication with any executive or employee of the Company other than the executive officers of the Company, the Manager of Investor Relations, in-house and outside counsel, a director of the Company and/or such other persons approved in writing by the foregoing or the Board of Directors concerning Company Information, or to seek any information in connection therewith from any such person other than the foregoing, without the prior consent of the Company; provided, however, the restriction in this sentence shall not apply to a PS Partner Appointee acting solely in his capacity as a director.
		

		

		

		 

		

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		5.  All Company Information shall remain the property of the Company.  Neither you nor any of the Specified Pershing Square Personnel shall by virtue of any disclosure of and/or your use of any Company Information acquire any rights with respect thereto, all of which rights (including all intellectual property rights) shall remain exclusively with the Company.  At any time after the date on which the PS Partner Appointee is not a director of the Company, upon the request of the Company for any reason, you will promptly return to the Company or destroy, at your option, all hard copies of the Company Information and use commercially reasonable efforts to permanently erase or delete all electronic copies of the Company Information in your or any of the Specified Pershing Square Personnel’s possession or control (and, upon the request of the Company, you shall promptly certify to the Company that such Company Information has been erased or deleted, as the case may be); provided, however, that (a) your legal department and/or outside counsel may keep one copy of any Company Information (in electronic or paper form) solely for purposes of complying with applicable law or regulation and, in the case of your outside counsel, to document its services for Pershing Square in accordance with applicable professional standards (and such information shall not be disclosed or used for any other purposes) and (b) you and/or your outside counsel may retain Company Information to the extent it is “backed-up” on your and/or their electronic information management and communication systems or servers in the ordinary course and is not immediately available to an end user (and such information shall not be recovered from such systems or servers except as expressly permitted above); provided, that any Company Information retained pursuant to clauses (a) and/or (b) shall be subject to the confidentiality terms of this Confidentiality Agreement notwithstanding any termination or expiration of this Confidentiality Agreement until such information is returned or destroyed or no longer constitutes Company Information pursuant to the terms hereof. Notwithstanding the return or erasure or deletion of Company Information, you and the Specified Pershing Square Personnel will continue to be bound by the obligations contained herein.
		

		
			6.  You acknowledge, and will advise the Specified Pershing Square Personnel, that the Company Information may constitute material non-public information under applicable federal and state securities laws, and you agree that neither you nor any of the Specified Pershing Square Personnel shall trade or engage in any derivative or other transaction on the basis of such information in violation of such laws. 
		

		
			7.  Each of the parties hereto hereby represents and warrants to the other party hereto that (a) such party has all requisite company power and authority to execute and deliver this Confidentiality Agreement and to perform such party’s obligations hereunder, (b) this Confidentiality Agreement has been duly authorized, executed and delivered by such party, and is a valid and binding obligation, enforceable against such party in accordance with its terms, (c) this Confidentiality Agreement will not result in a violation of any terms or conditions of any agreements to which such party is a party or by which such party may otherwise be bound or of any law, rule, license, regulation, judgment, order or decree governing or affecting such party, and (d) such party’s entry into this Confidentiality Agreement does not require approval by any owners or holders of any equity or other interest in such party (except as has already been obtained).
		

		
			8.  Any waiver by either party hereto of a breach by the other party of any provision of this Confidentiality Agreement shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Confidentiality Agreement.  The failure of either party hereto to insist upon strict adherence to any term of this Confidentiality 
		

		 

		

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		Agreement on one or more occasions shall not be considered a waiver or deprive such party of the right thereafter to insist upon strict adherence to that term or any other term of this Confidentiality Agreement.
		

		
			9.  You acknowledge and agree that the value of the Company Information to the Company is unique and substantial.  Each of the parties hereto acknowledges and agrees that irreparable injury to the other party hereto would occur in the event that any of the provisions of this Confidentiality Agreement were not performed in accordance with their specific terms or were otherwise breached and that money damages are not an adequate remedy for such a breach.  It is accordingly agreed that each party hereto may be entitled to specific enforcement of, and injunctive relief to prevent any violation of, the terms of this Confidentiality Agreement.  
		

		
			10.  Each of the parties hereto (a) irrevocably agrees that any legal action or proceeding based on or arising out of this Confidentiality Agreement will be brought exclusively in the Court of Chancery of the State of Delaware (or, if such court declines to accept jurisdiction, any other federal or state courts of the State of Delaware), (b) irrevocably waives the right to trial by jury in any such action or proceeding, (c) irrevocably submits to the personal jurisdiction of the aforesaid courts, and irrevocably waives any argument that such courts are an inconvenient or improper forum, (d) agrees to waive any bonding requirement under any applicable law, in the case any other party seeks to enforce the terms by way of equitable relief, and (e) consents to service of process by a reputable overnight delivery service, signature requested, to the address of such party’s principal place of business or as otherwise provided by applicable law.  THIS CONFIDENTIALITY AGREEMENT SHALL BE GOVERNED BY AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT REFERENCE TO CONFLICTS OF LAW PRINCIPLES.
		

		
			11.  This Confidentiality Agreement and the Letter Agreement (including the exhibits thereto) contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior or contemporaneous agreements or understandings, whether written or oral.  This Confidentiality Agreement may be amended only by an agreement in writing executed by the parties hereto.  
		

		
			12.  All notices, consents, requests, instructions, approvals and other communications provided for herein and all legal process in regard hereto shall be in writing and shall be deemed validly given, made or served, (a) if given by telecopy or email, when such telecopy is transmitted to the telecopy number set forth below or sent to the email address set forth below, as applicable, and the appropriate confirmation is received or (b) if given by any other means, when actually received during normal business hours at the address specified in this section:
		

		
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			If to the Company:

Chipotle Mexican Grill, Inc. 
1401 Wynkoop Street, Suite 500
Denver, CO 80202
Attention:  General Counsel
		

		

		

		 

		

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		Email: cmessner@messner.com
Facsimile: (303) 623-0552

With a copy to (which shall not constitute notice):

Wachtell, Lipton, Rosen & Katz
51 West 52nd Street
New York, NY 10019
Attention: Daniel A. Neff; David A. Katz; Sabastian V. Niles
		

		
			Email: DANeff@WLRK.com; DAKatz@WLRK.com; SVNiles@wlrk.com
Facsimile: (212) 403-2366
		

		
			If to Pershing Square:
		

		
			
Pershing Square Capital Management, L.P.
888 Seventh Avenue, 42nd Floor
New York, NY 10019
		

		
			Attention: Stephen Fraidin; Steve Milankov
		

		
			Email: fraidin@persq.com; milankov@persq.com
		

		
			Facsimile: (212) 286-1133
		

		
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			With a copy (which shall not constitute notice) to:
		

		
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			Cadwalader, Wickersham & Taft LLP
		

		
			One World Financial Center
		

		
			New York, New York 10281
		

		
			Attention: Richard M. Brand
		

		
			Email: richard.brand@cwt.com
		

		
			Facsimile: (212) 504-6666
		

		
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			13.  If at any time subsequent to the date hereof, any provision of this Confidentiality Agreement shall be held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision shall be of no force and effect, but the illegality or unenforceability of such provision shall have no effect upon the legality or enforceability of any other provision of this Confidentiality Agreement.
		

		
			14.  This Confidentiality Agreement may be executed in two or more counterparts, each of which will be considered one and the same agreement and will become effective when counterparts have been signed by each of the parties hereto and delivered to the other party (including by means of electronic delivery or facsimile).
		

		
			15.  This Confidentiality Agreement and the rights and obligations herein may not be assigned or otherwise transferred, in whole or in part, by you without the express written consent of the Company.  This Confidentiality Agreement, however, shall be binding on successors of the parties hereto.
		

		

		

		 

		

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		16.  This Confidentiality Agreement shall expire twelve (12) months following the date that is the later of (1) the date that the PS Partner Appointee (and any Successor Director) no longer serves on the Board of Directors and (2) the date that Matthew H. Paull ceases to provide Company Information to the Pershing Square Group or any of the Specified Pershing Square Personnel; except that you shall indefinitely maintain in accordance with the confidentiality obligations set forth herein any material constituting the Company’s intellectual property (including patents, trade secrets, copyright and trademarks).
		

		
			17.  No licenses or rights under any patent, copyright, trademark, or trade secret are granted or are to be implied by this Confidentiality Agreement.
		

		
			18.  Each of the parties hereto acknowledges that it has been represented by counsel of its choice throughout all negotiations that have preceded the execution of this Confidentiality Agreement and the Letter Agreement, and that it has executed the same with the advice of said counsel. Each party and its counsel cooperated and participated in the drafting and preparation of this Confidentiality Agreement and the Letter Agreement and the documents referred to herein and therein, and any and all drafts relating thereto exchanged among the parties shall be deemed the work product of all of the parties and may not be construed against any party by reason of its drafting or preparation. Accordingly, any rule of law or any legal decision that would require interpretation of any ambiguities in this Confidentiality Agreement or the Letter Agreement against any party that drafted or prepared it is of no application and is hereby expressly waived by each of the parties hereto, and any controversy over interpretations of this Confidentiality Agreement or the Letter  Agreement shall be decided without regards to events of drafting or preparation.
		

		
			[Signature Pages Follow]
		

		

		

		 

		

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		Please confirm your agreement with the foregoing by signing and returning one copy of this Confidentiality Agreement to the undersigned, whereupon this Confidentiality Agreement shall become a binding agreement between you and the Company.
		

		
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			Very truly yours,

		

		
			Chipotle Mexican Grill, Inc.
		

		
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			By:______________________
Name: 
Title:   
		

		
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			[Signature Page to the Confidentiality Agreement between Chipotle Mexican Grill, Inc. and Pershing Square Group]

		

		

			 

		

		

			 

		

		

			 

		

 

		

			 

		

		Accepted and agreed as of the date first written above:
		

			
					
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			Pershing Square Capital Management, L.P.
		

		
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			By:  PS Management GP, LLC, its General Partner

By:_________________________________
Name:  William A. Ackman
Title:    Managing Member 
		

		
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		EXHIBIT B
		

		
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			PRESS RELEASE
		

		
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