Document:

EX-4.1

 Exhibit 4.1 

AMENDMENT NO. 3 TO CREDIT AGREEMENT AND AMENDMENT TO PLEDGE 

AND SECURITY AGREEMENT 

This AMENDMENT NO. 3 AND AMENDMENT TO PLEDGE AND SECURITY AGREEMENT (this “Amendment”) dated as of April 18, 2016,
is among MCDERMOTT INTERNATIONAL, INC., a Panamanian corporation (the “LC Borrower”), MCDERMOTT FINANCE L.L.C., a Delaware limited liability company (the “Term Borrower”), the Issuers and the Lenders party hereto
(including any such Lender that that has instructed the Administrative Agent to approve this Amendment on its behalf), the Guarantors party hereto, and CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK, as administrative agent (in such capacity, the
“Administrative Agent”). Reference is made to the Credit Agreement dated as of April 16, 2014, among the LC Borrower, the Term Borrower, the Administrative Agent, and the Lenders and Issuers party thereto (as amended,
supplemented, restated, increased, extended or otherwise modified from time to time, the “Credit Agreement”). 
 RECITALS

 The LC Borrower and the Term Borrower have requested, and the Administrative Agent, the Issuers and the Lenders party hereto (including
any such Lender that has instructed the Administrative Agent to approve this Amendment on its behalf) agree, on the terms and conditions set forth herein, to make certain amendments to the Credit Agreement. 

The parties hereto hereby agree as follows: 

Section 1. Defined Terms; Other Definitional Provisions. As used in this Amendment, each of the terms defined herein
shall have the meanings assigned to such terms herein. Each term defined in the Credit Agreement (as amended hereby) and used herein without definition shall have the meaning assigned to such term in the Credit Agreement (as amended hereby), unless
expressly provided to the contrary. The words “hereof”, “herein”, and “hereunder” and words of similar import when used in this Amendment shall refer to this Amendment as a whole and not to any particular provision of
this Amendment. Paragraph headings have been inserted in this Amendment as a matter of convenience for reference only and it is agreed that such paragraph headings are not a part of this Amendment and shall not be used in the interpretation of any
provision of this Amendment. 
 Section 2. Amendment Effective Date Amendments to Credit Agreement. As of the Amendment
Effective Date (as hereinafter defined), the Credit Agreement shall be amended as follows: 
 (a) Section 1.1 of the Credit Agreement
shall be amended by adding the following definitions in appropriate alphabetical order: 
 “Adjusted Interest
Expense” means, for any period, Interest Expense for such period, excluding, however, amounts included therein attributable to any of the following: (a) upfront fees, structuring fees, consent fees and other similar
one-time fees paid in connection with Amendment No. 3, (b) any write-off of Interest Expense occurring as a result of Amendment No. 3, and (c) any structuring fees, one-time commitment fees and other similar one-time fees paid in
connection with a sale and leaseback transaction permitted hereunder in respect of the DLV 2000. 
  

  
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 “Amendment No. 3” means Amendment No. 3 to Credit
Agreement and Amendment to Pledge and Security Agreement dated as of the Amendment No. 3 Effective Date, among the Borrowers, the Guarantors party thereto, the Administrative Agent, the Issuers party thereto, and the Lenders party thereto.

 “Amendment No. 3 Effective Date” means April 18, 2016. 

“Covenant Secured Leverage Ratio” means, as of any date of determination, the ratio of
(a) Leverage Ratio Debt as of such day secured by a Lien on property of the Parent or any of its Restricted Subsidiaries, other than the following: (i) Indebtedness in respect of the Second Lien Notes, (ii) Indebtedness in respect of
the North Ocean 105 Credit Agreement and (iii) the mark-to-market foreign exchange exposure of the Parent and its Restricted Subsidiaries that is secured only by cash or Cash Equivalents, to (b) Adjusted EBITDA for the last four full
Fiscal Quarters ended prior to such day. For the avoidance of doubt, as of the Amendment No. 3 Effective Date, Indebtedness in respect of the Tangible Equity Units is not secured by a Lien on the property of the Parent or any of its Restricted
Subsidiaries and, as such, is excluded from the Covenant Secured Leverage Ratio unless and until such Indebtedness is secured by a Lien on property of the Parent or any of its Restricted Subsidiaries. 

“Fixed Charge Coverage Ratio” means, for any period, the ratio of (a) Adjusted EBITDA for such
period to (b) the sum of (i) Adjusted Interest Expense for such period, (ii) the aggregate principal amount of all regularly scheduled principal payments or scheduled redemptions or similar acquisitions for value in respect of
outstanding Indebtedness for borrowed money during such period other than (A) the final principal payment owed under the North Ocean 105 Credit Agreement that is due on the “Maturity Date” (as defined in the North Ocean 105 Credit
Agreement), (B) the Installment due on the Scheduled Term Maturity Date in respect of the Term Loans and (C) prepayments of the Term Loans required under Section 2.9(d), and (iii) the aggregate amount of Federal, state,
local and foreign income taxes paid in cash, in each case, of or by the Parent and its Subsidiaries for such period. For the avoidance of doubt, any optional prepayment of the Indebtedness in respect of the North Ocean 105 Credit Agreement and the
Term Loans shall not at any time be included in the denominator of the Fixed Charge Coverage Ratio. 

“Leverage Ratio” means, as of any date of determination, the ratio of (a) the sum of
(1) Leverage Ratio Debt as of such day, other than the mark-to-market foreign exchange exposure of the Parent and its Restricted Subsidiaries that is secured only by cash or Cash Equivalents, plus (2) the unsecured mark-to-market
foreign exchange exposure of the Parent and its Subsidiaries, as determined by Parent using market convention, to (b) Adjusted EBITDA for the last four full Fiscal Quarters ended prior to such day. 

“North Ocean 105 Credit Agreement” means the Facility Agreement dated as of September 30, 2010,
among North Ocean 105 AS, as borrower, the Parent, as guarantor, BNP Paribas and Crédit Agricole Corporate and Investment Bank, as mandated lead  

  
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arrangers, BNP Paribas, as facility agent, security agent, ECA coordinator and documentation bank, and the lenders from time to time party thereto, as amended, restated, supplemented or otherwise
modified from time to time. 
 “Term Loan Payoff” shall mean the repayment in full of all Obligations
in respect of the Term Loans. 
 (b) Section 1.1 of the Credit Agreement shall be amended further by: 

(i) Deleting the definition of “EBITDA Adjustment”. 

(ii) Adding “until the occurrence of the Term Loan Payoff and solely in (x) determining the “Secured Leverage
Ratio” for purposes of Section 2.9(d) and (y) determining whether a Guarantor is an “Immaterial Guarantor” for purposes of Section 11.1,” at the beginning of clause (iii) of the last paragraph of
the definition of “Interest Expense”. 
 (c) Section 5.1 of the Credit Agreement shall be amended and restated as
follows: 
 Section 5.1 Fixed Charge Coverage Ratio; Leverage Ratio; Covenant Secured Leverage Ratio. 

(a) Fixed Charge Coverage Ratio. Beginning with the Fiscal Quarter ended March 31, 2016, the Parent shall not
permit the Fixed Charge Coverage Ratio as of the last day of any Fiscal Quarter for the four Fiscal Quarters then ended to be less than 1.15:1.00. 

(b) Leverage Ratio. Beginning with the Fiscal Quarter ended March 31, 2016, the Parent shall not permit the
Leverage Ratio, as of the last day of any Fiscal Quarter, to be more than: 
 (i) for each Fiscal Quarter ending on or before June 30,
2017, 4.50:1.00, 
 (ii) for each Fiscal Quarter ending thereafter but on or before December 31, 2017, 4.00:1.00, and 

(iii) for each Fiscal Quarter ending thereafter, 3.50:1.00. 

(c) Covenant Secured Leverage Ratio. Beginning with the Fiscal Quarter ended March 31, 2016, the Parent shall not
permit the Covenant Secured Leverage Ratio, as of the last day of any Fiscal Quarter, to be more than: 
 (i) for each Fiscal Quarter ending
on or before December 31, 2017, 2.00:1.00, and 
 (ii) for each Fiscal Quarter ending thereafter, 1.50:1.00. 

(d) Section 5.2 of the Credit Agreement shall be amended by deleting “, as of the last day of any Fiscal Quarter,” and adding
“at any time” after “$200,000,000.00”. 

  
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 (e) Section 6.1(e) of the Credit Agreement shall be amended and restated as follows: 

(e) Cash Forecast. In form and substance reasonably satisfactory to the Administrative Agent, within 10 Business
Days following the end of each Fiscal Quarter, a cash forecast for the 13 weeks immediately following such Fiscal Quarter (a “13 Week Cash Forecast”), together with a report comparing actual results to the results projected for such
Fiscal Quarter in the most recently delivered 13 Week Cash Forecast, including a narrative explaining any significant variances. The information provided pursuant to this Section 6.1(e) shall be delivered by the Administrative Agent to
the LC Lenders only. 
 (f) Section 6.2(b) of the Credit Agreement shall be deleted and replaced with
“[Reserved.]”. 
 (g) Section 6.2 of the Credit Agreement shall be amended by adding the following as clause
(f): 
 (f) Ichthys Project Reporting. Until the Loan Parties’ work on the Ichthys project is
substantially complete, a status report in respect of the Ichthys project in form and substance reasonably satisfactory to the Administrative Agent, within 10 Business Days following the end of each Fiscal Quarter. 

(h) Section 6.11 of the Credit Agreement shall amended and restated as follows: 

The Borrowers shall promptly provide the Administrative Agent or any Lender with any information reasonably requested by
the Administrative Agent or such Lender through the Administrative Agent respecting the business, properties, condition, financial or otherwise, or operations of the Parent, any of its Subsidiaries or any Joint Venture. The Administrative Agent
shall provide copies of any written information provided to it pursuant to this Article VI to any LC Lender requesting the same. The information provided pursuant to this Section 6.11 shall be delivered by the Administrative
Agent to the LC Lenders only. 
 (i) Section 8.14 of the Credit Agreement shall be amended and restated as follows: 

The Parent shall not make or incur, or permit its Restricted Subsidiaries to make or incur, Capital Expenditures except that
the Parent and its Restricted Subsidiaries may make or incur Capital Expenditures during any Fiscal Year in an aggregate amount not in excess of (a) $250,000,000.00 plus (b) the lesser of (i) the amount by which $250,000,000.00
exceeds the amount of Capital Expenditures made or incurred by the Parent and its Restricted Subsidiaries in the immediately preceding Fiscal Year and (ii) $125,000,000.00. 

(j) Exhibit H-1 of the Credit Agreement is deleted in its entirety and replaced with Exhibit H-1 attached hereto. 

  
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 Section 3. Extension Effective Date Amendments to Credit Agreement. As of, and
subject to the occurrence of, the Extension Effective Date (as hereinafter defined), the Credit Agreement shall be amended as follows: 

(a) Section 1.1 of the Credit Agreement shall amended by adding the following definitions in appropriate alphabetical order: 

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA
Resolution Authority in respect of any liability of an EEA Financial Institution. 
 “Bail-In
Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to
time which is described in the EU Bail-In Legislation Schedule. 
 “EEA Financial Institution”
means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an
institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is
subject to consolidated supervision with its parent.  
 “EEA Member Country” means any of the
member states of the European Union, Iceland, Liechtenstein, and Norway. 
 “EEA Resolution
Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial
Institution. 
 “EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule
published by the Loan Market Association (or any successor person), as in effect from time to time.  

“Extended LC Maturity Date” means April 22, 2019.  

“Extension Conditions” shall be satisfied if on or before January 15, 2019, either (a) the
Term Maturity Date is extended to a date that is at least 90 days after the Extended LC Maturity Date or (b) (i) the Term Loan Payoff occurs and (ii) any refinancing indebtedness in respect of the Term Loans has a scheduled maturity
date of at least 90 days after the Extended LC Maturity Date. 
 “Write-Down and Conversion
Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and
conversion powers are described in the EU Bail-In Legislation Schedule. 

  
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 (b) Section 1.1 of the Credit Agreement shall be amended further by: 

(i) Deleting “or” in clause (c) in the definition of “Defaulting Lender” therein, adding “or” to the end of
clause (d) thereof and adding “has, or has a direct or indirect parent company that has, become the subject of a Bail-In Action;” as a new clause (e) thereof. 

(ii) Deleting “Deepwater Lay Vessel 2000” in the definition of “DLV 2000” and replacing it with “derrick lay vessel
“DLV 2000” with IMO number 9683142”. 
 (iii) Deleting “2014 Appraisals or the updated” from the definition of
“Fair Market Value” and adding “therefor” after “delivered” therein. 
 (iv) Adding “(including any
auto-renewal thereof)” after “renew” in the definition of “Issue”. 
 (v) Deleting “April 16, 2017” from
the definition of “Scheduled Letter of Credit Facility Termination Date” and replacing it with “the Extended LC Maturity Date; provided that, if on January 15, 2019, the Extension Conditions have not been satisfied, the
Scheduled Letter of Credit Facility Termination Date shall be January 15, 2019.” 
 (vi) Replacing “ending” in clause
(b) of the definition of “Secured Leverage Ratio” with “ended”. 
 (c) Section 2.4(a)(i) of the Credit
Agreement shall be amended by adding “(including, without limitation, any applicable “know your customer” and anti-money laundering rules and regulations)” after the second reference to “Issuer” therein. 

(d) Section 2.4(a)(iv) of the Credit Agreement shall be amended by adding “to the applicable Issuer” after “due”.

 (e) Section 2.4(b) of the Credit Agreement shall be amended and restated as follows: 

(b) In no event shall the expiration date of any Letter of Credit be later than the earlier of (i) the date that is
12 months from the date of Issuance thereof or such later date as the applicable Issuer may agree in its sole discretion and (ii) the fifth Business Day prior to the Scheduled Letter of Credit Facility Termination Date or, with the approval of
the applicable Issuer at its discretion, any date that is after the Scheduled Letter of Credit Facility Termination Date; provided, however, that, if the applicable Issuer agrees in its sole discretion, any Letter of Credit with a
fixed term may provide for the auto-renewal thereof for additional periods of not more than 12 months each (each, an “Auto-Renewal LC”); provided, further, that any such Auto-Renewal LC must permit the applicable
Issuer to prevent any such extension at least once in each 12 month period (commencing with the date of issuance of such Letter of Credit) by giving prior notice to the beneficiary thereof; provided, further, however that if any
Issuance or renewal of a Letter of Credit occurs during the 12 month period prior to the Scheduled Letter of Credit Facility Termination Date or the LC Borrower requests (and the applicable Issuer approves) the Issuance of a Letter of Credit that
expires after the Scheduled Letter of Credit Facility Termination Date, then on or before the date that is 95 days prior to the Scheduled Letter of Credit Facility Termination Date (or on the date of such Issuance, if the date of such Issuance is
later than the 95th day prior to the Scheduled Letter of Credit  

  
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Facility Termination Date and the relevant Issuer so consents), the LC Borrower shall provide cash collateral to the Collateral Agent in an amount equal to 105% of the face amount of each
such Letter of Credit that expires after the Scheduled Letter of Credit Facility Termination Date (each such Letter of Credit an “Extended Letter of Credit”). On the Letter of Credit Facility Termination Date and if all Letter of
Credit Obligations have been repaid in full, such Extended Letters of Credit shall for all purposes cease to be Letters of Credit hereunder and the obligations of the LC Lenders to fund their Ratable Portions of such Extended Letters of Credit
pursuant to clause (h) below shall be terminated except to the extent that any Letter of Credit has an expiration date after the Letter of Credit Facility Termination Date and has not been cash collateralized as described above. After the
Letter of Credit Facility Termination Date and the repayment in full of all Letter of Credit Obligations, the terms for release of such cash collateral shall be as agreed from time to time between the LC Borrower and such Issuer; provided
that in the absence of such agreement between the LC Borrower and such Issuer, the terms of this Agreement shall, as between the LC Borrower and such Issuer, continue to govern the fees, costs and expenses payable in respect of such Extended Letters
of Credit. 
 (f) Section 2.4(c) of the Credit Agreement shall be amended and restated as follows: 

(c) In connection with the Issuance of each Letter of Credit, the LC Borrower shall give the relevant Issuer and the
Administrative Agent at least two Business Days’ (unless the relevant Issuer otherwise agrees) prior written notice, in substantially the form of Exhibit E (or in such other written or electronic form as is acceptable to the
Issuer), of the requested Issuance of such Letter of Credit (a “Letter of Credit Request”). Such notice shall be irrevocable on and after the Issuance of such Letter of Credit (and, prior to such Issuance, may be revoked only with
the consent of the Issuer) and shall specify the Issuer of such Letter of Credit, the stated amount of the Letter of Credit requested, the date of Issuance of such requested Letter of Credit, the date on which such Letter of Credit is to expire
(which date shall be a Business Day), and the Person for whose benefit the requested Letter of Credit is to be issued. Unless the Issuer and Administrative Agent otherwise agree, such notice, to be effective, must be received by the relevant Issuer
and the Administrative Agent not later than 1:00 p.m. (New York time) on the second Business Day prior to the requested Issuance of such Letter of Credit. 

(g) Section 2.4(d) of the Credit Agreement shall be amended and restated as follows: 

(d) Subject to (x) the satisfaction of the conditions set forth in this Section 2.4 and (y) receipt from the
Administrative Agent, if requested by the Issuer, of the total outstanding amount of Letter of Credit Obligations at such time (including the amount of any outstanding requests for Issuances), the relevant Issuer shall, on the requested date, Issue
a Letter of Credit on behalf of the LC Borrower in accordance with such Issuer’s usual and customary business practices. No Issuer shall Issue any Letter of Credit in the period commencing on the first Business Day after it receives written
notice from the Administrative Agent or any LC Lender that one or more of the conditions precedent contained in Section 3.2 shall not on such date be satisfied, and ending when such conditions are satisfied. The relevant Issuer shall not
otherwise be required to determine that, or take notice whether, the conditions precedent set forth in Section 2.4(a)(iii) and Section 3.2 have been satisfied in connection with the Issuance of any Letter of Credit. 

(h) Section 2.15 of the Credit Agreement shall be amended by adding “or liquidity” at the end of clause (a). 

(i) Section 2.20(a)(i) of the Credit Agreement shall be amended and restated as follows: 

(i) Waivers and Amendments. Each LC Lender hereby agrees that notwithstanding anything to the contrary herein, no
Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder (and each LC Lender hereby agrees that any amendment, waiver or consent which by its terms requires the consent of all Lenders or each
affected Lender may be effected with the 

  
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consent of the Lenders other than Defaulting Lenders), except that (x) the Letter of Credit Facility Commitments of any Defaulting Lender may not be increased or extended without the consent
of such Lender and (y) any waiver, amendment or modification requiring the consent of all Lenders or each affected Lender that by its terms affects any Defaulting Lender more adversely than other affected Lenders shall require the consent of
such Defaulting Lender. 
 (j) Section 2.21(c) of the Credit Agreement shall be amended and restated as follows: 

(c) Such Letter of Credit Commitment Increase shall become effective, as of such Increased Amount Date; provided that
(i) no Default or Event of Default shall exist on such Increased Amount Date before or after giving effect to such Letter of Credit Commitment Increase; (ii) the Parent shall be in pro forma compliance with each of the covenants set forth
in Article V as of the most recent date of determination after giving effect to such Letter of Credit Commitment Increase; (iii) the Letter of Credit Commitment Increase or the New Letter of Credit Facility Commitment, as applicable,
shall be effected pursuant to an increase and joinder agreement (an “Increase and Joinder Agreement”) in form and substance acceptable to the Administrative Agent and each Issuer in its reasonable discretion, executed and delivered
by the LC Borrower, any existing LC Lender providing a New Letter of Credit Facility Commitment, any New Lender providing a New Letter of Credit Facility Commitment and the Administrative Agent (and, to the extent required, each Issuer), and which
shall be recorded in the Register and each New Lender shall be subject to the requirements set forth in Section 2.16(e) and (f); and (iv) the LC Borrower shall deliver or cause to be delivered any legal opinions or other
documents reasonably requested by Administrative Agent in connection with any such Letter of Credit Commitment Increase. Notwithstanding anything herein to the contrary, each Issuer shall have approved the Letter of Credit Commitment Increase
allocated to each existing LC Lender and the New Letter of Credit Facility Commitment allocated to each New Lender (such approval not to be unreasonably withheld, delayed or conditioned). 

(k) Section 3.2(a) of the Credit Agreement shall be amended by adding “and the Administrative Agent” after the reference to
“Issuer” therein. 
 (l) Article IV of the Credit Agreement shall be amended by adding the following as Section 4.22: 

Section 4.22 EEA Financial Institution. 

No Loan Party is an EEA Financial Institution. 

(m) Section 6.2(e) of the Credit Agreement shall be amended and restated as follows: 

(e) Appraisals. On or before August 1 of each year, updated appraisals for each Mortgaged Vessel and for
each other marine vessel of the Parent and its Subsidiaries (other than any marine vessel that is under construction) included in the determination of the Term Loan Facility Collateral Coverage Ratio; provided, however, that in no case
shall any appraisal for a Mortgaged Vessel be delivered more than thirteen months after  

  
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the most recent delivery of an appraisal with respect to such vessel pursuant to this clause (e), in each case, (i) in form and scope similar to the 2014 Appraisals (except that if
any such appraisal is delivered after March 1 of such year, the vessel valuations therein shall be as of June 30 of such year) and (ii) performed by an internationally recognized appraiser that (A) is a member of the National
Association of Marine Surveyors and the American Society of Appraisers and (B) is reasonably satisfactory to the Administrative Agent. 

(n) Section 7.11(a)(iii) of the Credit Agreement shall be amended by (x) adding a period at the end of clause (iii) and
(y) adding the following to the end of clause (iii) after such period: 
 Notwithstanding the foregoing, no Subsidiary of any Loan
Party shall be required at any time to take any action under this clause (iii) that is at such time either (I) prohibited by (x) any Governmental Authority with authority over such Subsidiary or (y) applicable law, or (II)
not within such Subsidiary’s legal capacity, in each case after taking all available steps under applicable law other than those steps that the Administrative Agent shall determine from time to time in its sole discretion are not reasonable at
such time; 
 (o) Section 7.11(a)(iv) of the Credit Agreement shall be amended by deleting “, within 20 Business Days of such
acquisition,” and adding the following to the end of clause (iv): 
 (x) in the case of the DLV 2000, within 365 days after taking
delivery thereof, unless a sale and leaseback transaction permitted hereunder in respect of the DLV 2000 has been consummated, in which case this clause (iv) shall no longer be applicable with respect to the DLV 2000 until such time as
the DLV 2000 may be re-acquired by a Loan Party or the owner of the DLV 2000 shall become a Loan Party, and (y) otherwise, within 20 Business Days of such acquisition 

(p) Section 7.16 of the Credit Agreement shall be amended and restated as follows: 

The Parent shall, and shall cause its Subsidiaries to: (a) (i) promptly (but in no event later than 30 days) after
taking delivery thereof, execute and deliver such mortgages and other security instruments as shall be necessary to cause the Lay Vessel 108 and (ii) within 365 days after taking delivery thereof (unless a sale and leaseback transaction
permitted hereunder in respect of the DLV 2000 has been consummated, in which case this Section 7.16 shall no longer be applicable with respect to the DLV 2000), execute and deliver such mortgages and other security instruments as shall be
necessary to cause the DLV 2000 to become a Mortgaged Vessel subject to a perfected first-priority security interest (in each case, which vessels shall not be subject to any other Liens securing Indebtedness for borrowed money) and (b) prior to
taking delivery thereof, to use commercially reasonable efforts to cause the counterparties under the construction agreements relating to the Lay Vessel 108 and, until such time as such vessel secures DLV 2000 Permitted Debt, the DLV 2000, to
consent to the assignment of all of the rights of the Loan Parties under such agreements to the Collateral Agent, pursuant to consents to assignment reasonably satisfactory to the Collateral Agent. 

  
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 (q) Section 8.1(d) of the Credit Agreement shall be amended by deleting “, but
excluding Indebtedness incurred or assumed in connection with an Acquisition” and replacing “$20,000,000.00” with “150,000,000.00”. 

(r) Section 8.2 of the Credit Agreement shall be amended by adding the following after clause (s): 

Without limiting the foregoing limitations, the Parent shall not, and shall not permit any of its Restricted Subsidiaries to, (x) create
or suffer to exist any Lien upon or with respect to the DLV 2000 or (y) assign any right to receive income with respect to the DLV 2000, in either case to secure Indebtedness for borrowed money unless (I) the DLV 2000 is a Mortgaged Vessel
or (II) (A) a sale and leaseback transaction permitted hereunder in respect of the DLV 2000 has been consummated and (B) the DLV 2000 is not owned by a Restricted Subsidiary. 

(s) Section 8.3(a) of the Credit Agreement shall be amended by deleting “(i) prior to the Scheduled Letter of Credit Facility
Termination Date, $75,000,000.00 and (ii) after the Scheduled Letter of Credit Facility Termination Date, $150,000,000.00 (since the Effective Date)” and replacing it with “$150,000,000.00”. 

(t) Section 8.13 of the Credit Agreement shall be amended by adding “and other than any sale and leaseback transaction of the DLV
2000 entered into within one year of taking delivery thereof” after “thereof”. 
 (u) Section 8.20 of the Credit
Agreement shall be amended and restated as follows: 
 The Parent shall not, and shall not permit any of its
Restricted Subsidiaries to, make any payment or prepayment (including any redemption, purchase, retirement, defeasance (including in-substance or legal defeasance), sinking fund or similar payment) on account of principal of any Junior Priority
Indebtedness, except (a) regularly scheduled principal payments as and when due in respect of any Junior Priority Indebtedness, (b) refinancings of Junior Priority Indebtedness with the proceeds of other Indebtedness permitted under
Section 8.1 and (c) so long as no Default or Event of Default has occurred and is continuing, or would result therefrom, prepayments in an aggregate amount not to exceed $100,000,000 since the Effective Date. For purposes of
calculating the amount of payments or prepayments under this Section 8.20, the amount of such payment or prepayment shall be the aggregate amount of cash paid by the Parent and its Restricted Subsidiaries. For the avoidance of doubt, the
prepayment of any Indebtedness owed by a North Ocean Entity that is existing on the Effective Date shall not be restricted by this Section 8.20. 

(v) Section 11.2(d) of the Credit Agreement shall be amended by replacing “as an agent” with “as a non-fiduciary
agent”. 
 (w) Article XI of the Credit Agreement is amended further by adding the following as Section 11.21. 

  
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 Section 11.21 Acknowledgement and Consent to Bail-In of EEA Financial Institutions.

 Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or
understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion
powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by (a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder
which may be payable to it by any party hereto that is an EEA Financial Institution; and (b) the effects of any Bail-in Action on any such liability, including, if applicable, (i) a reduction in full or in part or cancellation of any such
liability; (ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise
conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or (iii) the variation of the terms of such
liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority. 
 Section 4.
Amendments to Pledge and Security Agreement. As of, and subject to the occurrence of, the Extension Effective Date, the Pledge and Security Agreement shall be amended by adding the following to the end of the definition of
“Material Account” therein: 
 ; provided that, the definition of “Material Account” shall exclude any
Deposit Account or Securities Account that regularly receives payments from customers on any material contract if amounts on deposit therein are transferred to an account that constitutes a Material Account within three Business Days of such amounts
on deposit therein exceeding $10.0 million 
 Section 5. Representations and Warranties of Borrowers. Each Borrower
represents and warrants that on and as of both (x) the Amendment Effective Date and (y) the Extension Effective Date: 
 (a) both
before and after giving effect to this Amendment, the representations and warranties set forth in Article IV of the Credit Agreement and in the other Loan Documents (each as amended hereby) that have no materiality or Material Adverse Effect
qualification are true and correct in all material respects and the representations and warranties set forth in Article IV of the Credit Agreement and in the other Loan Documents (each as amended hereby) that have a materiality or Material Adverse
Effect qualification are true and correct in all respects, in each case with the same effect as though made on and as of the Amendment Effective Date or the Extension Effective Date, as applicable, or, to the extent such representations and
warranties expressly relate to an earlier date, as of such earlier date; 
 (b) both before and after giving effect to this Amendment no
Default or Event of Default has occurred and is continuing; 

  
 11 

 (c) the execution, delivery and performance of this Amendment are within the corporate or other
organizational power and authority of the Borrowers and each other Guarantor and have been duly authorized by appropriate organizational and governing action and proceedings; 

(d) the execution, delivery and performance by the Borrowers and each other Guarantor of this Amendment do not and will not (i) violate
(A) any provision of any law, statute, rule or regulation, or of the certificate or articles of incorporation, articles of association or partnership agreement, other constitutive documents or by-laws of the Borrowers or any other Guarantor or
(B) any applicable order of any court or any rule, regulation or order of any Governmental Authority, (ii) be in conflict with, result in a breach of or constitute (alone or with notice or lapse of time or both) a default under any
Contractual Obligation of the Borrowers or any other Guarantor, where any such conflict, violation, breach or default referred to in clause (i) or (ii) of this clause (d), individually or in the aggregate could reasonably be expected to
have a Material Adverse Effect, (iii) except as permitted under the Credit Agreement (as amended by this Amendment), result in or require the creation or imposition of any Lien upon any of the properties or assets of the Borrowers or any such
other Guarantor (other than any Liens created under any of the Loan Documents (as amended hereby) in favor of the Collateral Agent on behalf of the Secured Parties), or (iv) require any approval of stockholders or partners or any approval or
consent of any Person under any Contractual Obligation of the Borrowers or any other Guarantor except for such approvals or consents which have been obtained and except for any such approvals or consents the failure of which to obtain will not have
a Material Adverse Effect; 
 (e) the person who is executing this Amendment on behalf of the Borrowers and each other Guarantor has the
full power, authority and legal right to do so, and this Amendment has been duly executed by such person and delivered to the Administrative Agent; and 

(f) this Amendment constitutes the legal, valid, and binding obligation of the Borrowers and each other Guarantor (other than
Section 3 with respect to MALMAC SDN. BHD. until the third condition under the heading “Malaysia” on Schedule B attached hereto is satisfied) enforceable in accordance with its terms, except as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the rights of creditors generally and general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). 

Section 6. Amendment Effective Date Conditions to Effectiveness. This Amendment (other than Sections 3 and
4 hereof) shall become effective on the first date upon which the following condition is satisfied (the “Amendment Effective Date”): 

(a) receipt by the Administrative Agent of an executed counterpart of this Amendment (in accordance with Section 12 of this
Amendment) from the LC Borrower, the Term Borrower, each other Guarantor, each Issuer and the Requisite LC Lenders. 
 The Administrative Agent shall
provide notice to the parties hereto of the occurrence of the Amendment Effective Date. 

  
 12 

 Section 7. Extension Effective Date Conditions to Effectiveness.
Sections 3 and 4 of this Amendment shall become effective on the first date on or before June 30, 2016 (the “Outside Date”) upon which each of the following conditions are satisfied (the “Extension
Effective Date”): 
 (a) receipt by the Administrative Agent of (i) executed consents to this Amendment from the
Requisite Term Lenders instructing the Administrative Agent to approve the amendments contemplated by Sections 3 and 4 of this Amendment on their behalf and (ii) executed counterparts of this Amendment (in accordance with
Section 12 of this Amendment) or executed consents to this Amendment instructing the Administrative Agent to approve this Amendment on their behalf from each LC Lender that did not deliver an executed counterpart of this Amendment to the
Administrative Agent by the Amendment Effective Date (or an assignee of such LC Lender); 
 (b) receipt by the Administrative Agent of each
item listed on Schedule A hereto; 
 (c) receipt by the Administrative Agent of favorable written opinions in form and substance
reasonably satisfactory to the Administrative Agent of (i) Baker Botts L.L.P., counsel to the Loan Parties, (ii) Liane K. Hinrichs, General Counsel of the Parent, (iii) Arias Fabrega & Fabrega, special Panamanian counsel to
certain of the Loan Parties, and (iv) special and local counsel in certain jurisdictions as listed on Schedule C hereto, in each case dated as of the Extension Effective Date and addressed to the Administrative Agent, the Collateral
Agent, the other Agents, the Lenders and the Issuers and addressing such other matters as any Lender through the Administrative Agent may reasonably request in connection with the transactions contemplated by this Amendment; 

(d) payment of all fees and expenses (including reasonable fees and expense of counsel to the Administrative Agent in accordance with the
terms of the Credit Agreement) that are due and payable in connection with the Credit Agreement or the transactions contemplated by this Amendment; 

(e) the Letter of Credit Facility Commitments (as the same shall be modified by this Amendment on the Extension Effective Date) shall equal or
exceed the aggregate amount of Letter of Credit Obligations on the Extension Effective Date; and 
 (f) the conditions specified in
clauses (a) through (e) of this Section 7 shall have been satisfied on or before the Outside Date. 
 The Administrative
Agent shall provide notice to the parties hereto of the occurrence of the Extension Effective Date. 
 Section 8.
Reduction and Reallocation of Letter of Credit Facility Commitments. 
 (a) The Administrative Agent, the LC Borrower and each
party hereto as an LC Lender (including any LC Lender that executed a consent to this Amendment instructing the Administrative Agent to approve this Amendment on its behalf) hereby agrees that, unless otherwise agreed in writing by CIT Bank, N.A.
and The Bank of Nova Scotia, respectively, on or before the Extension Effective Date, the Letter of Credit Facility Commitments of CIT Bank, N.A. and The Bank of Nova Scotia shall be terminated on the Extension Effective Date simultaneously with the
reallocation of Letter of Credit Facility Commitments contemplated by this Section 8. 

  
 13 

 (b) The Administrative Agent, the LC Borrower and each party hereto as an LC Lender (including
any LC Lender that executed a consent to this Amendment instructing the Administrative Agent to approve this Amendment on its behalf) hereby agrees that, from and after the Extension Effective Date, the LC Lenders shall have the respective Letter of
Credit Facility Commitments as set forth on the attached Schedule I; provided that such Schedule I may be further supplemented by the Administrative Agent on or before the Extension Effective Date to add the Letter of Credit
Facility Commitment of any LC Lender that becomes a party hereto after the Amendment Effective Date solely with the consent of such LC Lender, the Administrative Agent, the LC Borrower and each Issuer. By its execution and delivery of this
Amendment, each LC Lender listed on Schedule I hereto (as the same may be supplemented as aforesaid) that is not an LC Lender on the Amendment Effective Date (each, an “Added Lender”) hereby assumes all of the rights and obligations
of an LC Lender under the Credit Agreement and agrees to be bound by the terms of the Credit Agreement applicable to LC Lenders. 
 (c) The
Administrative Agent, the Issuers and the LC Borrower hereby consent to and approve the Letter of Credit Facility Commitment of each Added Lender and the increase in the Letter of Credit Facility Commitment of each LC Lender party hereto whose
Letter of Credit Facility Commitment on the Extension Effective Date is greater than its Letter of Credit Facility Commitment on the Amendment Effective Date (each, an “Increasing Lender”). 

(d) Each Added Lender and each Increasing Lender hereby represents and warrants as of the Extension Effective Date as follows: (a) it has
full power and authority, and has taken all action necessary, to execute and deliver this Amendment, to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement, (b) from and after the Extension
Effective Date, it shall be bound by the provisions of the Credit Agreement as an LC Lender thereunder and, to the extent of its Letter of Credit Facility Commitment, shall have the obligations of an LC Lender thereunder, and (c) it has
received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to Section 6.1 thereof, as applicable, and such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into this Amendment on the basis of which it has made such analysis and decision independently and without reliance on the Administrative Agent, any Issuer or any other Lender; and agrees that (i) it
will, independently and without reliance on the Administrative Agent, any Issuer or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not
taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as an LC Lender. 

(e) Upon the Extension Effective Date, each of the existing LC Lenders shall assign to each of the Added Lenders and the Increasing Lenders,
and each of the Added Lenders and the Increasing Lenders shall purchase from each of the existing LC Lenders, at the principal amount thereof (together with accrued interest), such interests in the Reimbursement Obligations outstanding on the
Extension Effective Date as shall be necessary in order that, after giving 

  
 14 

 
effect to all such assignment and purchases, such Reimbursement Obligations will be held by existing LC Lenders, Increasing Lenders and Added Lenders ratably in accordance with their Letter of
Credit Facility Commitments on the Extension Effective Date (after giving effect to this Amendment, including the modifications to Letter of Credit Facility Commitments contemplated by clauses (a) and (b) of this
Section 8). 
 Section 9. Reaffirmation of Credit Support. 

(a) Each of the Borrowers and each other Guarantor (collectively, the “Credit Support Parties”) has read this Amendment and
consents to the terms hereof and further hereby confirms and agrees that, notwithstanding the effectiveness of this Amendment, the obligations of such Credit Support Party under, and the Liens granted by such Credit Support Party as collateral
security for the Indebtedness, obligations and liabilities (including the Obligations) evidenced by the Credit Agreement and the other Loan Documents (as amended hereby) pursuant to, each of the Loan Documents (as amended hereby) to which such
Credit Support Party is a party shall not be impaired and shall extend to the Obligations as they are or may be increased (or their maturity date extended) by this Amendment, and each of the Loan Documents (as amended hereby) to which such Credit
Support Party is a party is, and shall continue to be, in full force and effect and are hereby confirmed and ratified in all respects. 

(b) Each Credit Support Party (other than the LC Borrower and the Term Borrower) acknowledges and agrees that (i) notwithstanding the
conditions to effectiveness set forth in this Amendment, such Credit Support Party is not required by the terms of the Credit Agreement or any other Loan Document to consent to the amendments to the Credit Agreement effected pursuant to this
Amendment and (ii) nothing in the Credit Agreement (as amended hereby), this Amendment or any other Loan Document (as amended hereby) shall be deemed to require the consent of such Credit Support Party to any future amendments to the Credit
Agreement. 
 Section 10. Acknowledgments and Agreements. 

(a) The Loan Parties acknowledge that on and as of (x) the Amendment Effective Date and (y) the Extension Effective Date all
Obligations are payable without defense, offset, counterclaim or recoupment. Each of the Borrowers, the Administrative Agent, each Issuer party hereto and each LC Lender party hereto does hereby adopt, ratify, and confirm the Credit Agreement, as
amended hereby, and acknowledges and agrees that the Credit Agreement, as amended hereby, is and remains in full force and effect, and the Borrowers acknowledge and agree that their liabilities and obligations under the Credit Agreement, as amended
hereby, are not impaired in any respect by this Amendment. The Borrowers further agree that all Loan Documents shall apply to the Obligations as they are or may be modified by this Amendment. 

(b) From and after the Amendment Effective Date, all references to the Credit Agreement shall mean the Credit Agreement as amended hereby.
This Amendment is a Loan Document for the purposes of the provisions of the other Loan Documents. Without limiting the foregoing, any breach of representations, warranties, and covenants under this Amendment shall be a Default or Event of Default,
as applicable, under the Credit Agreement. 
 (c) Subject to the occurrence of the Amendment Effective Date, the Borrowers agree to deliver
to the Administrative Agent each of the agreements, documents, instruments or certificates described on Schedule B hereto and perform each of the actions described on Schedule B hereto, in each case within the time periods set forth on
Schedule B hereto. 

  
 15 

 (d) For the avoidance of doubt, if the conditions set forth in Section 7 of this
Amendment do not occur by the Outside Date, the Credit Agreement and the Pledge and Security Agreement shall not be amended, modified, extended or supplemented as contemplated in Sections 3 and 4 and the Letter of Credit Facility
Commitments shall not be reduced or reallocated as contemplated by Section 8, but the failure to achieve the Extension Effective Date shall not in any way limit the effectiveness of this Amendment for any other purposes (including,
without limitation, the effectiveness of Section 2 of this Amendment). 
 Section 11. Miscellaneous.

 (a) Except as specifically modified by this Amendment, the Credit Agreement and the other Loan Documents shall remain in full force
and effect and are hereby ratified and confirmed. 
 (b) The execution, delivery and performance of this Amendment shall not constitute a
waiver of any provision of, or operate as a waiver of any right, power or remedy of any Agent, LC Lender or Issuer under, the Credit Agreement or any of the other Loan Documents. 

(c) The Administrative Agent, with the consent of the Requisite Lenders, the LC Borrower and the Term Borrower, can waive or modify any of the
conditions to the Extension Effective Date set forth in Section 7. 
 Section 12. Counterparts. This
Amendment may be signed in any number of counterparts, each of which shall be an original and all of which, taken together, constitute a single instrument. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in
electronic format (i.e., “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Agreement. 

Section 13. Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and assigns permitted pursuant to the Credit Agreement. 
 Section 14. Governing Law. This
Amendment and the rights and obligations of the parties hereto shall be governed by, and construed and interpreted in accordance with, the law of the State of New York, without regard to its conflicts of laws provisions. 

Section 15. Entire Agreement. THIS AMENDMENT AND THE CREDIT AGREEMENT AS AMENDED HEREBY, TOGETHER WITH ALL OF THE OTHER
LOAN DOCUMENTS AND ALL CERTIFICATES AND DOCUMENTS DELIVERED HEREUNDER OR THEREUNDER, EMBODY THE ENTIRE AGREEMENT OF THE PARTIES AND SUPERSEDE ALL PRIOR AGREEMENTS AND UNDERSTANDINGS RELATING TO THE SUBJECT MATTER HEREOF. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS AMONG THE PARTIES. 
 [Signature pages follow.] 

  
 16 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above written. 
  

			
	LC BORROWER:
	
	MCDERMOTT INTERNATIONAL, INC.
		
	By:	 	 /s/ Katherine Murray

	Name:	 	Katherine Murray
	Title:	 	Vice President, Treasurer and Investor Relations
	
	TERM BORROWER:
	
	MCDERMOTT FINANCE L.L.C.
		
	By:	 	 /s/ Katherine Murray

	Name:	 	Katherine Murray
	Title:	 	Vice President, Treasurer and Investor Relations

  
 [Signature page to
Amendment No. 3 to Credit Agreement] 

 
	
	GUARANTORS:
	
	CHARTERING COMPANY (SINGAPORE) PTE. LTD.
	DEEPSEA (AMERICAS) LLC
	DEEPSEA (EUROPE) LIMITED
	DEEPSEA (UK) LIMITED
	DEEPSEA GROUP LIMITED
	DEEPSEA (US) INCORPORATED
	EASTERN MARINE SERVICES, INC.
	GLOBAL ENERGY - MCDERMOTT LIMITED
	HYDRO MARINE SERVICES, INC.
	J. RAY HOLDINGS, INC.
	INTERNATIONAL VESSELS LTD.
	J. RAY MCDERMOTT (AUST.) HOLDING PTY. LIMITED
	J. RAY MCDERMOTT CANADA HOLDING, LTD.
	J. RAY MCDERMOTT CANADA, LTD.
	J. RAY MCDERMOTT ENGINEERING SERVICES PRIVATE
	           LIMITED
	J. RAY MCDERMOTT FAR EAST, INC.
	J. RAY MCDERMOTT HOLDINGS, LLC
	J. RAY MCDERMOTT, S.A.
	J. RAY MCDERMOTT INTERNATIONAL, INC.
	J. RAY MCDERMOTT KAZAKHSTAN LIMITED LIABILITY
	           PARTNERSHIP
	J. RAY MCDERMOTT LOGISTIC SERVICES PVT. LIMITED
	J. RAY MCDERMOTT (NORWAY), AS
	J. RAY MCDERMOTT (QINGDAO) PTE. LTD.
	J. RAY MCDERMOTT SOLUTIONS, INC.
	J. RAY MCDERMOTT TECHNOLOGY, INC.
	J. RAY MCDERMOTT UNDERWATER SERVICES, INC.

  

			
	By:	 	 /s/ James P. Goodwin

	Name:	 	James P. Goodwin
	Title:	 	Assistant Treasurer

  
 [Signature page to
Amendment No. 3 to Credit Agreement] 

 
			
	J. RAY MCDERMOTT WEST AFRICA HOLDINGS, INC.
	J. RAY MCDERMOTT WEST AFRICA, INC.
	MCDERMOTT ASIA PACIFIC PTE. LTD.
	MCDERMOTT AUSTRALIA PTY. LTD.
	MCDERMOTT BLACKBIRD HOLDINGS, LLC
	MCDERMOTT CASPIAN CONTRACTORS, INC.
	MCDERMOTT EASTERN HEMISPHERE, LTD.
	MCDERMOTT ENGINEERING, LLC
	MCDERMOTT FAR EAST, INC.
	MCDERMOTT GULF OPERATING COMPANY, INC.
	MCDERMOTT, INC.
	MCDERMOTT INTERNATIONAL INVESTMENTS CO., INC.
	MCDERMOTT INVESTMENTS, LLC
	MCDERMOTT INTERNATIONAL MANAGEMENT, S. DE RL.
	MCDERMOTT INTERNATIONAL TRADING CO., INC.
	MCDERMOTT INTERNATIONAL VESSELS, INC.
	MCDERMOTT MARINE CONSTRUCTION LIMITED
	MCDERMOTT MIDDLE EAST, INC.
	MCDERMOTT OFFSHORE SERVICES COMPANY, INC.
	MCDERMOTT OLD JV OFFICE, INC.
	MCDERMOTT OVERSEAS, INC.
	MCDERMOTT SUBSEA, INC.
	MCDERMOTT SUBSEA ENGINEERING, INC.
	MCDERMOTT TRADE CORPORATION
	NORTH ATLANTIC VESSEL, INC.
	OPI VESSELS, INC.
	SABINE RIVER REALTY, INC.
	SPARTEC, INC.
		
	By:	 	 /s/ James P. Goodwin

	Name:	 	James P. Goodwin
	Title:	 	Assistant Treasurer

  
 [Signature page to
Amendment No. 3 Credit Agreement] 

 
			
	DEEPSEA (HOLLAND) B.V.
	J. RAY MCDERMOTT INVESTMENTS B.V.
	J. RAY MCDERMOTT (LUXEMBOURG), S.AR.L.
	J. RAY MCDERMOTT (NIGERIA) LIMITED
	MCDERMOTT HOLDINGS (U.K.) LIMITED
	MCDERMOTT INTERNATIONAL B.V.
	 MCDERMOTT INTERNATIONAL MARINE

            INVESTMENTS N.V.

	MC DERMOTT OVERSEAS INVESTMENT CO. N.V.
	MCDERMOTT SERVICOS OFFSHORE DO BRASIL LTDA.
	PT. BAJA WAHANA INDONESIA
	SINGAPORE HUANGDAO PTE. LTD.
	VARSY INTERNATIONAL N.V.
	ELDRIDGE PTE. LTD.
		
	By:	 	 /s/ James P. Goodwin

	Name:	 	James P. Goodwin
	Title:	 	Authorized Person
	
	J. RAY MCDERMOTT DE MEXICO, S.A. DE C.V.
	MCDERMOTT MARINE MEXICO, S.A. DE C.V.
	SERVICIOS PROFESIONALES DE ALTAMIRA, S.A. DE C.V.
	SERVICIOS DE FABRICACION DE ALTAMIRA, S.A. DE C.V.
		
	By:	 	 /s/ James P. Goodwin

	Name:	 	James P. Goodwin
	Title:	 	Attorney-in-fact

  
 [Signature page to
Amendment No. 3 Credit Agreement] 

 
			
	EXECUTED AND DELIVERED
	as deed on behalf of
	J. RAY MCDERMOTT INTERNATIONAL VESSELS, LTD.
		
	By:	 	 /s/ James P. Goodwin

	Name:	 	James P. Goodwin
	Title:	 	Assistant Treasurer
	
	Witnessed
		
	By:	 	 /s/ Robert E. Stumpf

	Name:	 	Robert E. Stumpf
	Title:	 	Assistant Secretary
	
	 EXECUTED AND DELIVERED
 as
deed on behalf of

	MCDERMOTT CAYMAN LTD.
		
	By:	 	 /s/ James P. Goodwin

	Name:	 	James P. Goodwin
	Title:	 	Assistant Treasurer
	
	Witnessed
		
	By:	 	 /s/ Robert E. Stumpf

	Name:	 	Robert E. Stumpf
	Title:	 	Assistant Secretary
	
	 EXECUTED AND DELIVERED
 as
deed on behalf of

	OFFSHORE PIPELINES INTERNATIONAL, LTD.
		
	By:	 	 /s/ James P. Goodwin

	Name:	 	James P. Goodwin
	Title:	 	Assistant Treasurer
	
	Witnessed
		
	By:	 	 /s/ Robert E. Stumpf

	Name:	 	Robert E. Stumpf
	Title:	 	Assistant Secretary

  
 [Signature page to
Amendment No. 3 Credit Agreement] 

 
			
	Except with respect to Section 3 of this Amendment, for all other purposes of this Amendment from and including the Amendment Effective Date to the Extension Effective Date only:
	
	MALMAC SDN. BHD.
		
	By:	 	 /s/ James P. Goodwin

	Name:	 	James P. Goodwin
	Title:	 	Assistant Treasurer

  
 [Signature page to
Amendment No. 3 Credit Agreement] 

 
			
	 CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK,

as Administrative Agent, an LC Lender and an Issuer

		
	By:	 	 /s/ Page Dillehunt

	Name:	 	 Page Dillehunt

	Title:	 	 Managing Director

		
	By:	 	 /s/ Michael D. Willis

	Name:	 	 Michael D. Willis

	Title:	 	 Managing Director

  
 [Signature page to
Amendment No. 3 Credit Agreement] 

 
			
	WELLS FARGO BANK, N.A., as an LC Lender and an Issuer
		
	By:	 	 /s/ Shannon Cunningham

	Name:	 	 Shannon Cunningham

	Title:	 	 Vice President

  
 [Signature page to
Amendment No. 3 Credit Agreement] 

 
			
	 ABN AMRO CAPITAL USA LLC,
 as an LC
Lender and an Issuer

		
	By:	 	 /s/ Francis Birkeland

	Name:	 	 Francis Birkeland

	Title:	 	 Managing Director

  

			
	By:	 	 /s/ Urvashi Zutshi

	Name:	 	 Urvashi Zutshi

	Title:	 	 Managing Director

  
 [Signature page to
Amendment No. 3 Credit Agreement] 

			
	 COMPASS BANK dba BBVA Compass,
 as
an LC Lender 

		
	By:	 	 /s/ Khoa Duong

	Name:	 	 Khoa Duong

	Title:	 	 Vice President

  
 [Signature page to
Amendment No. 3 Credit Agreement] 

 
			
	 Standard Chartered Bank,
 as an LC
Lender

		
	By:	 	 /s/ Steven Aloupis

	Name:	 	 Steven Aloupis

	Title:	 	 Managing Director Loan Syndications

  
 [Signature page to
Amendment No. 3 Credit Agreement] 

 
			
	 Whitney Bank,
 as an LC
Lender

		
	By:	 	 /s/ Eric Luttrell

	Name:	 	 Eric Luttrell

	Title:	 	 Senior Vice President

  
 [Signature page to
Amendment No. 3 Credit Agreement] 

 
			
	 For purposes of Section 8 of this Amendment only:

 
 CIT Bank, N.A.,

as an LC Lender

		
	By:	 	 /s/ Michael A Robinson

	Name:	 	 Michael A Robinson

	Title:	 	 Vice President

  
 [Signature page to
Amendment No. 3 Credit Agreement] 

 
			
	 For purposes of Section 8 of this Amendment only:

 
 The Bank of Nova Scotia,

as an LC Lender

		
	By:	 	 /s/ J. Frazell

	Name:	 	 J. Frazell

	Title:	 	 Director

  
 [Signature page to
Amendment No. 3 Credit Agreement] 

 SCHEDULE I 

LETTER OF CREDIT FACILITY COMMITMENTS 
  

					
	 LC Lender
	  	Letter of Credit Facility
Commitment	 
	Crédit Agricole Corporate and Investment Bank	  	$	125,000,000	  
	Wells Fargo Bank, N.A.	  	$	125,000,000	  
	ABN AMRO Capital USA LLC	  	$	75,000,000	  
	Compass Bank	  	$	75,000,000	  
	Standard Chartered Bank	  	$	25,000,000	  
	Whitney Bank	  	$	25,000,000	  
		  	  
	  
	 
	 Total
	  	$	450,000,000.00	  
		  	  
	  
	 

 SCHEDULE A 

Additional Deliverables 
 A certificate as to the
good standing of each Loan Party organized in the State of Delaware or the Republic of Panama as of a recent date from the applicable Governmental Authority in such Loan Party’s jurisdiction of organization. 

Recent Lien search results in each relevant jurisdiction in the United States with respect to the Borrowers and those of the Subsidiaries that shall be
Guarantors as of the Extension Effective Date, and such search shall reveal no Liens on any of the assets of the Borrowers or any of such Subsidiaries except for, (i) in the case of Collateral other than Pledged Stock, Liens expressly permitted
by Section 8.2 of the Credit Agreement and (ii) in the case of Pledged Stock, Liens on the Pledged Stock securing the Obligations and the Indebtedness under the Second Lien Note Documents. 

A certificate in form and substance satisfactory to the Administrative Agent of (i) an Authorized Officer, the Secretary or the Assistant Secretary of
each Loan Party dated as of the Extension Effective Date and certifying (A) (I) that attached thereto is a true and complete copy of the by-laws or similar document of such Loan Party as in effect on the Extension Effective Date and at all
times since a date prior to the date of the resolutions described in clause (B) below or (II) that the by-laws or similar document of such Loan Party previously certified to the Administrative Agent has not been modified, rescinded or amended
and are in full force and effect on the Increase and Effective Date and at all times since a date prior to the date of the resolutions described in (B) below; (B) that attached thereto is a true and complete copy of resolutions duly
adopted by the board of directors (or similar governing body) of such Loan Party authorizing the execution, delivery and performance of the Amendment or any other document delivered in connection herewith on behalf of such Loan Party, and that such
resolutions have not been modified, rescinded or amended and are in full force and effect; (C) (I) that the certificate or articles of incorporation or other formation documents of such Loan Party have not been amended since the date of
the last certification of such documents to the Administrative Agent or (II) that attached thereto is a copy of the certificate or articles of incorporation or other formation documents of such Loan Party; and (D) as to the incumbency and
specimen signature of each officer executing the Amendment or any other document delivered in connection herewith on behalf of such Loan Party; and (ii) a certificate of another officer as to the incumbency and specimen signature of the
Authorized Officer executing the certificate pursuant to clause (i) above 
 A certificate of a Responsible Officer of the Borrowers dated as of the
Extension Effective Date in form and substance satisfactory to the Administrative Agent certifying that (i) the representations and warranties set forth in Article IV of the Credit Agreement and in the other Loan Documents that have no
materiality or Material Adverse Effect qualification shall be true and correct in all material respects and the representations and warranties set forth in Article IV of the Credit Agreement and in the other Loan Documents that have a materiality or
Material Adverse Effect qualification shall be true and correct in all respects, in each case with the same effect as though made on and as of such date or, to the extent such representations and warranties expressly relate to an earlier date, as of
such earlier date, (ii) no Default or Event of Default shall 

 
have occurred and be continuing, and (iii) no litigation not listed on Schedule 4.17 of the Credit Agreement shall have been commenced against the Parent or any of its Restricted
Subsidiaries that could reasonably be expected to have a Material Adverse Effect. 
 Except as set forth on Schedule B, evidence satisfactory to the
Administrative Agent that the Parent and its Restricted Subsidiaries have received all consents and authorizations required pursuant to any enforceable and material Contractual Obligation with any other Person and have obtained all consents and
authorizations of, and effected all notices to and filings with, any Governmental Authority, in each case, as may be necessary to allow each of the Parent and its Restricted Subsidiaries lawfully to execute, deliver and perform, in all material
respects, their respective obligations hereunder and under and the Loan Documents to which each of them, respectively, is, or be, a party and each other agreement or instrument to be executed and delivered by each of them, respectively, pursuant
thereto or in connection therewith. 
 An amendment to the Global Intercompany Note in form and substance satisfactory to the Administrative Agent. 

Cayman Islands 
 An amended version of the register of
members of each Guarantor incorporated in the Cayman Islands, updated to reflect the confirmation of the security granted over such Guarantor’s shares by this Amendment provided by the relevant member of such Guarantor. 

An amended version of the register of mortgages and charges of each Guarantor incorporated in the Cayman Islands, updated to reflect the confirmation of the
security granted by that Guarantor by the Amendment provided by that Guarantor. 
 Malta 

Consent of Second Priority Mortgagee in form and substance reasonably satisfactory to the Administrative Agent by Wells Fargo Bank, National Association. 

Mexico 
 Amendment in English and Spanish, in form and
substance reasonably acceptable to the Administrative Agent, to the Stock Pledge Agreement dated as of June 6, 2014 by and among J. Ray McDermott International, Inc., J. Ray McDermott Underwater Services, Inc., J. Ray McDermot de México,
S.A. de C.V. and Crédit Agricole Corporate and Investment Bank as Collateral Agent. 
 Amendment in English and Spanish, in form and substance
reasonably acceptable to the Administrative Agent, to the Stock Pledge Agreement dated as of June 6, 2014 by and among J. Ray McDermott International, Inc., J. Ray McDermott Underwater Services, Inc., Servicios de Fabricación de
Altamira, S.A. de C.V. and Crédit Agricole Corporate and Investment Bank as Collateral Agent. 
 Amendment in English and Spanish, in form and
substance reasonably acceptable to the Administrative Agent, to the Stock Pledge Agreement dated as of June 6, 2014 by and among J. Ray McDermott International, Inc., J. Ray McDermott Underwater Services, Inc., Servicios Profesionales de
Altamira, S.A. de C.V. and Crédit Agricole Corporate and Investment Bank as Collateral Agent. 

 Amendment in English and Spanish, in form and substance reasonably acceptable to the Administrative Agent, to the
Stock Pledge Agreement dated as of June 6, 2014 by and among McDermott Offshore Services Company, Inc., McDermott Old JV Office, Inc., McDermott Marine México, S.A. de C.V. and Crédit Agricole Corporate and Investment Bank as
Collateral Agent. 
 Amendment in English and Spanish, in form and substance reasonably acceptable to the Administrative Agent, to the Floating Lien Pledge
Agreement dated as of July 7, 2014 by and among J. Ray McDermot de México, S.A. de C.V. and Crédit Agricole Corporate and Investment Bank as Collateral Agent. 

Amendment in English and Spanish, in form and substance reasonably acceptable to the Administrative Agent, to the Floating Lien Pledge Agreement dated as of
July 7, 2014 by and among McDermott Marine México, S.A. de C.V. and Crédit Agricole Corporate and Investment Bank as Collateral Agent. 

Evidence in form and substance reasonably acceptable to the Administrative Agent that the Stock Registries for each of J. Ray McDermott de México, S.A.
de C.V., McDermott Marine México, S.A. de C.V., Servicios de Fabricación de Altamira, S.A. de C.V., Servicios Profesionales de Altamira, S.A. de C.V., have been updated to reflect the execution of the amendments to the Stock Pledge
Agreements for each of the foregoing. 
 Evidence in form and substance reasonably acceptable to the Administrative Agent of registration with the Mexican
Sole Registry of Moveable Assets of the amendments to the Floating Lien Please Agreements for each of J. Ray McDermott de México, S.A. de C.V. and McDermott Marine México, S.A. de C.V. 

Solvency Certificate in form and substance reasonably acceptable to the Administrative Agent for each of J. Ray McDermott de México, S.A. de C.V.,
McDermott Marine México, S.A. de C.V., Servicios de Fabricación de Altamira, S.A. de C.V. and Servicios Profesionales de Altamira, S.A. de C.V. 

Officer’s Certificate in form and substance reasonably acceptable to the Administrative Agent for each of J. Ray McDermott de México, S.A. de
C.V., McDermott Marine México, S.A. de C.V., Servicios de Fabricación de Altamira, S.A. de C.V. and Servicios Profesionales de Altamira, S.A. de C.V. 

Shareholders Resolutions in form and substance reasonably acceptable to the Administrative Agent for each of J. Ray McDermott de México, S.A. de C.V.,
McDermott Marine México, S.A. de C.V., Servicios de Fabricación de Altamira, S.A. de C.V. and Servicios Profesionales de Altamira, S.A. de C.V. approving the execution of the documents delivered by the foregoing entities in connection
with this Amendment, including but not limited to the deliverables listed on Schedule A and Schedule B. 
 Panama 

First Amendment in form and substance reasonably acceptable to the Administrative Agent to the First Naval Fleet Mortgage, dated as of 16 April 2014, in
respect of the vessels McDermott 

 
Derrick Barge No. 27, Intermac 650 and McDermott Derrick Barge No. 32, by Crédit Agricole Corporate and Investment Bank, as mortgagee, and Hydro Marine Services, Inc., as
shipowner, as pre-registered with the Public Registry of Vessels. 
 First Amendment in form and substance reasonably acceptable to the Administrative Agent
to the First Naval Mortgage, dated as of 16 April 2014, in respect of the vessel McDermott Derrick Barge No. 50, by Crédit Agricole Corporate and Investment Bank, as mortgagee, and J. Ray McDermott International Vessels, Ltd., as
shipowner, as pre-registered with the Public Registry of Vessels. 
 Power of Attorney by each of Crédit Agricole Corporate and Investment Bank,
Hydro Marine Services, Inc. and J. Ray McDermott International Vessels, Ltd. 
 Singapore 

A deed of confirmation in form and substance reasonably satisfactory to the Administrative Agent among J. Ray McDermott, S.A., McDermott Offshore Services
Company, Inc., McDermott Asia Pacific Pte. Ltd., J. Ray McDermott (Qingdao) Pte. Ltd. and Crédit Agricole Corporate and Investment Bank as Collateral Agent. 

United Kingdom 
 An executed original deed of confirmation
in form and substance reasonably satisfactory to the Administrative Agent between McDermott Marine Construction Limited and Crédit Agricole Corporate and Investment Bank as Collateral Agent. 

An executed original charge over accounts in form and substance reasonably satisfactory to the Administrative Agent between McDermott Marine Construction
Limited and Crédit Agricole Corporate and Investment Bank as Collateral Agent. 
 A copy of any notices of charge delivered by McDermott Marine
Construction Limited in connection with the charge over accounts between McDermott Marine Construction Limited and Crédit Agricole Corporate and Investment Bank as Collateral Agent. 

 SCHEDULE B 

Post-Closing Deliverables 
 Within 90 days of the
Extension Effective Date, a certificate of good standing or similar certificate (to the extent applicable in its jurisdiction of organization) of each Loan Party (other than any Loan Party that delivered a good standing or similar certificate
pursuant to Schedule A of this Amendment) requested by the Administrative Agent in its sole discretion as of a recent date from the applicable Governmental Authority in such Loan Party’s jurisdiction of organization. 

Canada 
 By December 31, 2016 or such later date as
may be agreed by the Administrative Agent in its sole discretion, the Parent shall have caused the filing of updated financing statements pursuant to applicable personal property security legislation in each relevant jurisdiction of Canada against
each relevant Borrower or Guarantor in connection with the extension of the maturity date contemplated in this Amendment, unless the Administrative Agent has received evidence reasonably satisfactory to it by such date that J. Ray McDermott Canada
Holding, Ltd. and J Ray McDermott Canada Ltd. have been dissolved. 
 Malaysia 

Within 30 days of the Extension Effective Date (or such later date as may be agreed by the Administrative Agent in its sole discretion), approval from the
Central Bank of Malaysia with respect to the extension of the Scheduled Letter of Credit Facility Termination Date. 
 Within 30 days of the Extension
Effective Date (or such later date as may be agreed by the Administrative Agent in its sole discretion), the Administrative Agent shall have received a favorable written opinion of special Malaysian counsel to the Administrative Agent addressing
such matters as the Administrative Agent may reasonably request in connection with the transactions contemplated by this Amendment. 
 On the 8th Business Day from the date of receipt of approval from the Central Bank of Malaysia (or such later date as may be agreed by the Administrative Agent in its sole discretion) with respect to the
extension of the Scheduled Letter of Credit Facility Termination Date, the Administrative Agent shall have received all documents, instruments or other agreements requested by the Administrative Agent, each in form and substance reasonably
acceptable to the Administrative Agent, by which Malmac Sdn. Bhd. shall accede to the Amendment in all respects and become a party to thereto. 
 Malta

 Within one (1) Business Day of the Extension Effective Date or such later date as may be agreed by the Administrative Agent in its sole
discretion, the Mortgage Amendment to the First Priority Mortgage “H” dated and duly registered on May 19, 2015 over North Ocean 102 in form and substance reasonably satisfactory to the Administrative Agent by J. Ray McDermott
(Norway) AS in favor of Crédit Agricole Corporate and Investment Bank as Collateral Agent. 

 Within one (1) Business Day of the Extension Effective Date or such later date as may be agreed by the
Administrative Agent in its sole discretion, the Mortgage Amendment to the First Priority Mortgage “A” dated and duly registered on October 8, 2014 over Lay Vessel 108 in form and substance reasonably satisfactory to the
Administrative Agent by Hydro Marine Services Inc. in favor of Crédit Agricole Corporate and Investment Bank as Collateral Agent. 
 Within one
(1) Business Day of the Extension Effective Date or such later date as may be agreed by the Administrative Agent in its sole discretion, the Administrative Agent shall have received a favorable written opinion of special Maltese counsel to
certain of the Loan Parties addressing such matters as the Administrative Agent may reasonably request in connection with the transactions contemplated by this Amendment. 

 SCHEDULE C 

Legal Opinions 
 Special Barbadian counsel to
certain of the Loan Parties. 
 Special Mexican counsel to certain of the Loan Parties. 

Special Canadian counsel to certain of the Loan Parties. 

Special Cayman Islands counsel to certain of the Loan Parties. 

Special Norwegian counsel to certain of the Loan Parties. 

 EXHIBIT H-1 

TO CREDIT AGREEMENT 

FORM OF LC FACILITY COMPLIANCE CERTIFICATE 

For Fiscal [Quarter/Year] Ended [            ], 20[    ]
(the “Calculation Period”) 
 This certificate dated as of
[            ], 20[    ] is prepared pursuant to the Credit Agreement dated April 16, 2014 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”) among McDermott International, Inc., a Panamanian corporation (the “Parent”), McDermott Finance L.L.C., a Delaware limited liability company, the Lenders, the Issuers and Crédit
Agricole Corporate and Investment Bank, as administrative agent for the Lenders and the Issuers and collateral agent for the Lenders and the Issuers. The terms used herein and not otherwise defined herein have the meanings attributed thereto in the
Credit Agreement. 
 The undersigned hereby certifies in his or her capacity as a Responsible Officer of the Parent and not in his or her
individual capacity that (a) except as disclosed on Schedule [    ] hereto, during the Calculation Period, the Parent and its Restricted Subsidiaries have not undertaken any Asset Sale permitted by clauses (h), (i) or
(j) of Section 8.4 of the Credit Agreement (and that such schedule identifies the aggregate consideration received in connection with such Asset Sale(s) if the such aggregate consideration exceeds $2,500,000.00), (b) that[, except as
disclosed on Schedule [    ] hereto (including the nature thereof and the action with the Parent has taken or proposed to take with respect thereto)], no Default or Event of Default has occurred and is continuing, and
(c) that as of the end of the Calculation Period, the following amounts and calculations were true and correct: 
  

							
	 1.
	 	Section 5.1(a) – Fixed Charge Coverage Ratio 	  			
			
		 	 Adjusted EBITDA for the four Fiscal Quarters ended the last day of Calculation Period
	  	 	                     (a)	  
			
		 	 Adjusted Interest Expense for the four Fiscal Quarters ended the last day of Calculation Period
	  	 	                     (b)	  
			
		 	 Principal payments during the four Fiscal Quarters ended the last day of the Calculation Period1
	  	 	                     (c)	  
			
		 	 Taxes paid in cash2
	  	 	                     (d)	  
			
		 	 Fixed charges (1.b + 1.c + 1.d)
	  	 	                     (e)	  

  
  

	1 	Computed in accordance with clause (b)(ii) of the definition of “Fixed Charge Coverage Ratio” in the Credit Agreement 

	2 	Computed in accordance with clause (b)(iii) of the definition of “Fixed Charge Coverage Ratio” in the Credit Agreement 

							
			
		 	 Fixed Charge Coverage Ratio (1.a/1.e)
	  	 	                 :1.00	  
			
		 	 Minimum Fixed Charge Coverage Ratio
	  	 	1.15:1.00          	  
			
		 	 Compliance
	  	 	Yes              No	  
			
	 2.
	 	Section 5.1(b) – Leverage Ratio	  			
			
		 	 Leverage Ratio Debt on last day of Calculation Period
	  	 	                     (a)	  
			
		 	 Unsecured mark-to-market foreign exchange exposure of Parent and its Subsidiaries on last day of Calculation
Period
	  	 	                     (b)	  
			
		 	 Leverage Ratio ((2.a+2.b)/1.a)
	  	 	                 :1.00	  
			
		 	 Maximum Leverage Ratio
	  	 	[4.50]3[4.00]4[3.50]5:1.00	  
			
		 	 Compliance
	  	 	Yes              No	  
			
	 3.
	 	Section 5.1(c) –Covenant Secured Leverage Ratio	  			
			
		 	 Leverage Ratio Debt on last day of Calculation Period secured by a Lien on property of the Parent or any of its
Restricted Subsidiaries6
	  	 	                     (a)	  
			
		 	 Covenant Secured Leverage Ratio (3.a/1.a)
	  	 	                 :1.00	  
			
		 	 Maximum Covenant Secured Leverage Ratio
	  	 	[2.00]7[1.50]8:1.00	  
			
		 	 Compliance
	  	 	Yes              No	  
			
	 4.
	 	Section 5.2 – Minimum Liquidity	  			
			
		 	 Liquidity9
	  	 	                         	  
			
		 	 Minimum Liquidity
	  	 	$200,000,000.00	  
			
		 	 Compliance
	  	 	Yes              No	  

  
  

	3 	For Calculation Periods ending on or before June 30, 2017 

	4 	For Calculation Periods ending after June 30, 2017 but on or before December 31, 2017 

	5	For Calculation Periods ending after December 31, 2017 

	6 	Computed in accordance with clause (a) of the definition of “Covenant Secured Leverage Ratio” in the Credit Agreement 

	7 	For Calculation Periods ending on or before December 31, 2017 

	8 	For Calculation Periods ending after December 31, 2017 

	9 	Unrestricted cash and Cash Equivalents of the Parent and its Subsidiaries. 

							
			
	 5.
	 	Section 5.3 – LC Facility Collateral Coverage Ratio	  			
		 	 Aggregate Fair Market Value of the Mortgaged Vessels
	  	 	                     (a)	  
			
		 	 Aggregate principal amount of Term Loans
	  	 	                     (b)	  
			
		 	 Aggregate face value of each Financial Letter of Credit
	  	 	                     (c)	  
			
		 	 Reimbursement Obligations (or, for any Reimbursement Obligations in any Alternative Currency, the Dollar Equivalent
thereof)
	  	 	                     (d)	  
			
		 	 The mark-to-market foreign exchange exposure of the Parent and its Subsidiaries that is not secured by cash
	  	 	                     (e)	  
			
		 	 LC Facility Collateral Coverage Ratio:
	  			
			
		 	 5.a / (5.b + 5.c + 5.d + 5.e)
	  	 	                          	  
			
		 	 Minimum LC Facility Collateral Coverage Ratio
	  	 	1.20:1.00          	  
			
		 	 Compliance
	  	 	Yes              No	  

  

 IN WITNESS WHEREOF, I have hereto signed my name to this LC Facility Compliance Certificate as of
the date first above written. 
  

			
	MCDERMOTT INTERNATIONAL, INC.
		
	By:	 	  

	Name:	 	  

	Title:EX-10.1

 Exhibit 10.1 

Execution Version 
 April 15,
2016 
  
  

SEVENTY SEVEN ENERGY INC. 

RESTRUCTURING SUPPORT AGREEMENT 

April 15, 2016 
  

 
 THIS RESTRUCTURING SUPPORT AGREEMENT IS NOT AN
OFFER WITH RESPECT TO ANY SECURITIES OR A SOLICITATION OF VOTES WITH RESPECT TO A CHAPTER 11 PLAN OF REORGANIZATION. ANY SUCH OFFER OR SOLICITATION WILL COMPLY WITH ALL APPLICABLE SECURITIES LAWS AND/OR, AS APPLICABLE, PROVISIONS OF THE BANKRUPTCY
CODE. THIS RESTRUCTURING SUPPORT AGREEMENT CONTAINS MATERIAL NONPUBLIC INFORMATION AND, THEREFORE, IS SUBJECT TO FEDERAL SECURITIES LAWS. 

This Restructuring Support Agreement (together with the exhibits and schedules attached hereto, which includes, without limitation, the Plan
Term Sheet (as defined below) attached hereto as Exhibit A,1 as each may be amended, restated, supplemented, or otherwise modified from time to time in accordance with the terms
hereof, this “Agreement”), dated as of April 15, 2016, is entered into by and among: (i) Seventy Seven Energy Inc. (“HoldCo”); Seventy Seven Finance Inc. (“SSF”); Seventy Seven Operating
LLC (“OpCo”); Great Plains Oilfield Rental, L.L.C. (“Great Plains”); Seventy Seven Land Company LLC; Nomac Drilling, L.L.C. (“Nomac”); Performance Technologies, L.L.C. (“PTL”); PTL
Prop Solutions, L.L.C.; SSE Leasing, LLC; Keystone Rock & Excavation, L.L.C.; and Western Wisconsin Sand Company, LLC (each, a “Debtor” and, collectively, the “Debtors”)2; (ii) the lender parties to that certain Incremental Term Supplement (Tranche A), dated as of May 13, 2015 (as amended, restated, modified, supplemented or replaced from time to time prior
to the Petition Date, the “Incremental Term Loan”), by and among OpCo, as borrower, HoldCo, the guarantors thereunder, Wilmington Trust, N.A., as administrative agent, and the lenders thereunder (the “Incremental Term
Loan Lenders”) that are (and any Incremental Term Loan Lenders that may become in accordance with Section 14 and/or Section 15 hereof) signatories hereto (collectively, the “Consenting Incremental Term Loan
Lenders”); and (iii) the holders of OpCo Notes (each such holder, on behalf of itself and the funds it represents, an “OpCo Noteholder”) issued pursuant to that certain Indenture dated October 28, 2011 (as
amended, restated, modified, supplemented, or replaced from time to time prior to the Petition Date, the “OpCo Notes Indenture”) for the 6.625% Senior Notes Due 2019 (the “OpCo Notes”), by and among OpCo, SSF, the
guarantors named thereunder, and The Bank of New York Mellon Trust Company, N.A., as trustee, that are (and any OpCo Noteholder that may become in accordance with Section 14 and/or Section 15 hereof) signatories hereto
(collectively, the “Consenting OpCo Noteholders” and together with the Consenting Incremental Term Loan Lenders, the “Restructuring Support Parties”). This Agreement collectively refers to the Debtors and the
Restructuring Support Parties as the “Parties” and each individually as a “Party.” 
  

 

	1 	Capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in the Plan Term Sheet. 

	2 	Until the occurrence of the Termination Date, every entity that is a debtor in the Chapter 11 Cases shall be a party to this Agreement. 

 RECITALS 

WHEREAS, the Parties have engaged in good faith, arm’s-length negotiations and agreed to enter into certain restructuring transactions
(the “Restructuring Transactions”) pursuant to the terms and conditions set forth in this Agreement, including the preparation of (i) a joint plan of reorganization for the Debtors on terms consistent with the restructuring
term sheet attached hereto as Exhibit A (the “Plan Term Sheet”) and incorporated herein by reference pursuant to Section 2 hereof (as may be amended, restated, supplemented, or otherwise modified from time
to time in accordance with this Agreement, the “Plan”)3; and (ii) a disclosure statement containing “adequate information” (as that term is used in the Bankruptcy
Code) with respect to the Plan and the Plan Term Sheet and otherwise in form and substance reasonably satisfactory to the Restructuring Support Parties (the “Disclosure
Statement”)4; 
 WHEREAS, it is anticipated that the Restructuring
Transactions will be implemented through jointly-administered voluntary cases commenced by the Debtors (the “Chapter 11 Cases”) under chapter 11 of title 11 of the United States Code, 11
U.S.C. §§ 101–1532 (as amended, the “Bankruptcy Code”), in the United States Bankruptcy Court for the District of Delaware (the “Bankruptcy Court”), pursuant to the Plan, which will be filed by the
Debtors in the Chapter 11 Cases; 
 WHEREAS, as of the date hereof, the Consenting Incremental Term Loan Lenders, in the aggregate, hold
approximately $91,100,000 (92.0)% of the aggregate outstanding principal amount of the Incremental Term Loan Claims and the Incremental Term Loan Guaranty Claims; 

WHEREAS, as of the date hereof, the Consenting OpCo Noteholders, in the aggregate, hold approximately $375,304,000 (57.7)% of the aggregate
outstanding principal amount of the OpCo Notes and the OpCo Note Guaranty Claims; and 
 NOW, THEREFORE, in consideration of the promises,
mutual covenants, and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each of the Parties, intending to be legally bound, hereby agrees as follows: 

AGREEMENT 
 1.
RSA Effective Date. This Agreement shall become effective, and the obligations contained herein shall become binding upon the Parties, upon the first date (such date, the “RSA Effective Date”) that this Agreement has been
executed by all of the following: (i) each Debtor; 
  
  

	3 	The Plan shall be filed in accordance with the Milestones (as defined below) set forth in Section 6 of this Agreement. 

	4 	 The Disclosure Statement shall be filed in accordance with the Milestones set forth in Section 6 of
this Agreement. 

  
 2 

 
(ii) Consenting Incremental Term Loan Lenders holding, in aggregate, 66.67% in principal amount outstanding of all claims against the Debtors arising on account of the Incremental Term Loan and
the Incremental Term Loan Guaranty; and (iii) Consenting OpCo Noteholders holding, in aggregate, at least 50% in principal amount outstanding of all claims against the Debtors arising on account of the OpCo Notes (the “OpCo Note
Claims”). 
 2. Exhibits and Schedules Incorporated by Reference. Each of the exhibits attached hereto (including the Plan
Term Sheet) and any schedules to such exhibits (collectively, the “Exhibits and Schedules”) is expressly incorporated herein and made a part of this Agreement, and all references to this Agreement shall include the Exhibits and
Schedules. 
 3. Definitive Documentation. The definitive documents and agreements (the “Definitive Documentation”)
governing the Restructuring Transactions shall include every order entered by the Bankruptcy Court, and every pleading, motion, proposed order, or document filed by the Debtors at any point prior to the Termination Date including, without
limitation: (a) the Plan (and all exhibits thereto) and the confirmation order with respect to the Plan (the “Confirmation Order”); (b) the Disclosure Statement (and all exhibits thereto); (c) the solicitation
materials with respect to the Plan (collectively, the “Solicitation Materials”); and (d) any documents or agreements in connection with the reorganized Debtors after the date of consummation of the transactions contemplated by
the Plan (the “Plan Effective Date”), including, without limitation, any shareholders’ agreements, amended certificates of incorporation or similar organizational documents, or other related transactional or corporate
documents. The Definitive Documentation identified in the foregoing sentence remains subject to negotiation and shall, upon completion, contain terms, conditions, representations, warranties, and covenants consistent with the terms of this
Agreement. Any document that is included within the definition of “Definitive Documentation,” including any amendment, supplement, or modification thereof, shall be in a form and substance reasonably satisfactory to the Debtors and the
Requisite Consenting Creditors; provided, that for documents, terms, and provisions of the Definitive Documentation that constitute a Supermajority Matter (as defined below), such documents, terms, and provisions shall be in form and
substance acceptable to the Debtors and the Requisite Supermajority Consenting Creditors (as defined below). The Debtors acknowledge and agree that they will provide advance draft copies of all Definitive Documentation at least five (5) days
prior to the date when the Debtors intend to file any such pleading or other document (and, if not reasonably practicable, as soon as reasonably practicable prior to filing) to Latham & Watkins LLP (“Latham”), as counsel to
the Consenting Incremental Term Loan Lenders, and Weil, Gotshal & Manges LLP (“Weil”), as counsel to the Consenting OpCo Noteholders, and shall consult in good faith with Latham and Weil regarding the form and substance of
any such proposed filing. 
 4. Requisite Consenting Creditors. Unless expressly provided otherwise, and subject to
Section 5 of this Agreement, the term “Requisite Consenting Creditors” shall mean, as of the RSA Effective Date: 
  

	 	(a)	 with respect to all terms and provisions of this Agreement and/or the Definitive Documentation other than those
described in Section 4(b) of this Agreement, such terms and provisions, including any amendment, supplement, or modification thereof, shall be in form and substance 

  
 3 

	 	
acceptable to (i) the Consenting Incremental Term Loan Lenders holding at least two-thirds in amount of the outstanding Incremental Term Loan Claims and Incremental Term Loan Guaranty Claims
held by all Consenting Incremental Term Loan Lenders as of such date; and (ii) the Consenting OpCo Noteholders holding at least a majority of the outstanding OpCo Note Claims held by all Consenting OpCo Noteholders as of such date;

  

	 	(b)	with respect to provisions of this Agreement and/or the Definitive Documentation related to (i) the debt capital structure of the post-Plan Effective Date reorganized Debtors (the “Reorganized
Debtors”) upon the Plan Effective Date, excluding, for the avoidance of doubt, (A) any non-borrowed money debt incurred by the Debtors in the ordinary course of business or allocation of equity issued under the Plan and (B) the
DIP ABL Credit Facility and the Exit Facility (each as defined in the Plan Term Sheet), other than as provided in Section 4(b)(ii) hereof; (ii) the commitment amount, the interest rate, the maturity date, and all financial covenants
relating to the DIP ABL Credit Facility and the Exit Facility; (iii) any rights offering or other arrangement to contribute additional debt or equity capital on the Plan Effective Date (a “Proposed Contribution”) to the
Reorganized Debtors; (iv) the corporate governance and organizational documents of the Reorganized Debtors; (v) the percentage of equity of the Reorganized Debtors distributable pursuant to any warrants distributed under the Plan,
including the New Warrants (as defined in the Plan Term Sheet), the equity value at which such warrants are struck, and the expiration date of such warrants; (vi) the Management Incentive Plan (as defined in the Plan Term Sheet); (vii) the
amount of equity distributed to the HoldCo Noteholders under the Plan on account of their HoldCo Note Claims; or (viii) such other matters specified in the attached Plan Term Sheet as being subject to a Requisite Supermajority Consenting
Creditors consent or review, as applicable (collectively, the “Supermajority Matters”), such provisions, including any amendment, supplement, or modification thereof, shall be in form and substance acceptable to: 

 

	 	(i)	the Consenting Incremental Term Loan Lenders holding at least 66.67% in amount of the outstanding Incremental Term Loan Claims and Incremental Term Loan Guaranty Claims held by all Consenting Incremental Term Loan
Lenders as of the RSA Effective Date (the “Requisite Supermajority Consenting Incremental Term Loan Lenders”); and 

  

	 	(ii)	 at least two Consenting OpCo Noteholders holding in the aggregate at least 66.67% of the outstanding OpCo Note
Claims (the “Supermajority Consenting OpCo Noteholders”) and at least two of the Consenting OpCo Noteholders signatories to this Agreement as of April 15, 2016 (such parties on behalf of themselves and the funds they
represent, the “Existing Consenting  

  
 4 

	 	
OpCo Noteholders,” and together with the Supermajority Consenting OpCo Noteholders, the “Requisite Supermajority Consenting OpCo Noteholders”); provided,
however, that if at any time prior to the Plan Effective Date, any Existing Consenting OpCo Noteholder holds less than 7% of all outstanding OpCo Note Claims and there is no eligible Replacement Supermajority Consenting OpCo Noteholder
(as defined below), this Section 4(b) shall not apply, and the Requisite Consenting Creditors shall be determined in accordance with Section 4(a) ((i) and (ii) together, the “Requisite Supermajority Consenting
Creditors”). 

 5. Changes to “Requisite Consenting Creditors”. If at any time prior to the Plan
Effective Date, any Existing Consenting OpCo Noteholder holds less than 7% of all outstanding OpCo Note Claims, then (i) if such Existing Consenting OpCo Noteholder sells its OpCo Notes to a new noteholder that will thereafter hold in excess of
7% of all outstanding OpCo Note Claims, then such selling Existing Consenting OpCo Noteholder shall be replaced by such new noteholder that acquires its OpCo Notes (in accordance with Section 14 hereof), solely for the purpose of voting on any
Supermajority Matter (each such party, a “Replacement Supermajority Consenting OpCo Noteholder”); and (ii) if such Existing Consenting OpCo Noteholder has sold its OpCo Notes such that it holds less than 7%, but no single
acquiring noteholder holds in excess of 7% of the outstanding OpCo Note Claims, then all votes under this Agreement shall only require the consent of the Requisite Consenting Creditors, and no decisions under this Agreement shall require the consent
of the Requisite Supermajority Consenting Creditors. 
 6. Milestones. As provided herein and subject to the terms of
Section 8, the Debtors shall implement the Restructuring Transactions on the following timeline (each deadline, a “Milestone”): 
  

	 	(a)	no later than April 22, 2016, the Debtors shall have commenced solicitation on the Plan by mailing the Solicitation Materials to parties eligible to vote on the Plan; 

 

	 	(b)	no later than May 26, 2016, the Debtors shall commence the Chapter 11 Cases by filing voluntary petitions for relief under chapter 11 of the Bankruptcy Code and any and all other documents necessary to commence the
Chapter 11 Cases with the Bankruptcy Court (such filing date, the “Petition Date”); 

  

	 	(c)	on the Petition Date, the Debtors shall file with the Bankruptcy Court: (i) the Plan; (ii) the Disclosure Statement; and (iii) a motion (the “Scheduling Motion”) seeking, among other
things, to schedule the hearing to consider approval of the Disclosure Statement and confirmation of the Plan (the “Confirmation Hearing”); and (iv) a motion seeking to assume this Agreement (the “RSA Assumption
Motion”); 

  
 5 

	 	(d)	no later than June 9, 2016, the Bankruptcy Court shall have entered an order authorizing the assumption of this Agreement (the “RSA Assumption Order”); 

 

	 	(e)	no later than June 29, 2016, the Bankruptcy Court shall have commenced the Confirmation Hearing; 

  

	 	(f)	no later than July 6, 2016, the Bankruptcy Court shall have entered the Confirmation Order and an order approving the Disclosure Statement; and 

 

	 	(g)	no later than July 22, 2016, the Debtors shall consummate the transactions contemplated by the Plan (the date of such consummation, the “Effective Date”). 

The Debtors may extend a Milestone with the express prior written consent of the Requisite Consenting Creditors. 

7. Commitment of Restructuring Support Parties. Each Restructuring Support Party shall (severally and not jointly), solely as it
remains the legal owner, beneficial owner, and/or investment advisor or manager of or with power and/or authority to bind any claims held by it, provided, that any transfer of the Claims of the Restructuring Support Parties is made in
accordance with Section 14, from the RSA Effective Date until the occurrence of a Termination Date (as defined in Section 13) applicable to such Restructuring Support Party: 

 

	 	(a)	support and cooperate with the Debtors to take all commercially reasonable actions necessary to consummate the Restructuring Transactions in accordance with the Plan and the terms and conditions of this Agreement and
the Plan Term Sheet (but without limiting consent and approval rights provided in this Agreement and the Definitive Documentation), including: (i) voting all of its claims against, or interests in, as applicable, the Debtors now or hereafter
owned by such Restructuring Support Party (or for which such Restructuring Support Party now or hereafter has voting control over) to accept the Plan in accordance with the applicable procedures set forth in the Disclosure Statement and the
Solicitation Materials, upon receipt of Solicitation Materials and (ii) timely returning a duly-executed ballot in connection therewith; provided, that such vote shall be immediately revoked and deemed void ab initio upon
termination of this Agreement prior to the consummation of the Plan pursuant to the terms hereof; 

  

	 	(b)	not withdraw, amend, or revoke (or cause to be withdrawn, amended, or revoked) its tender, consent, or vote with respect to the Plan; provided, however, that nothing in this Agreement shall prevent any
Restructuring Support Party from withholding, amending, or revoking (or causing the same) its timely consent or vote with respect to the Plan if this Agreement is terminated with respect to such Restructuring Support Party; 

  
 6 

	 	(c)	not directly or indirectly object to, delay, impede, or take any other action to interfere with the Restructuring Transactions, or propose, file, support, or vote for any restructuring, workout, or chapter 11 plan for
any of the Debtors other than the Restructuring Transactions and the Plan; 

  

	 	(d)	not take any action (or encourage or instruct any other party including any agent or indenture trustee to take any action) in respect of any potential, actual, or alleged occurrence of any “Default” or
“Event of Default” under the ABL Facility, the Term Loan, the Incremental Term Loan, the OpCo Notes Indenture, or the HoldCo Notes Indenture or that would be triggered as a result of the execution of this Agreement, the commencement of the
Chapter 11 Cases, or the undertaking of any Debtor hereunder to implement the Restructuring Transactions through the Chapter 11 Cases; 

  

	 	(e)	propose, file, or support any use of cash collateral or debtor-in-possession financing other than as proposed in the Plan; and 

  

	 	(f)	not take any other action that is materially inconsistent with its obligations under this Agreement. 

Notwithstanding the foregoing, nothing in this Agreement and neither a vote to accept the Plan by any Restructuring Support Party nor the
acceptance of the Plan by any Restructuring Support Party shall (w) be construed to prohibit any Restructuring Support Party from contesting whether any matter, fact, or thing is a breach of, or is inconsistent with, this Agreement or the
Definitive Documentation, (x) be construed to prohibit any Restructuring Support Party from appearing as a party-in-interest in any matter to be adjudicated in the Chapter 11 Cases, so long as, from the RSA Effective Date until the occurrence
of a Termination Date applicable to such Restructuring Support Party, such appearance and the positions advocated in connection therewith are not materially inconsistent with this Agreement and are not for the purpose of hindering, delaying, or
preventing the consummation of the Restructuring Transactions, (y) affect the ability of any Restructuring Support Party to consult with other Restructuring Support Parties or the Debtors, or (z) impair or waive the rights of any
Restructuring Support Party to assert or raise any objection permitted under this Agreement in connection with any hearing on confirmation of the Plan or in the Bankruptcy Court or prevent such Restructuring Support Party from enforcing this
Agreement against the Debtors or any Restructuring Support Party. In addition, nothing in this Section 7 shall require any Restructuring Support Party to incur any unanticipated expenses or indemnification obligations as a result of
satisfying its obligations under this Agreement. 
 8. Commitment of the Debtors. 

 

	 	(a)	 Subject to Sub-Clause (b) below, each of the Debtors (i) agrees to (A) support and complete
the Restructuring Transactions set forth in the Plan and this Agreement, (B) negotiate in good faith all Definitive Documentation that is subject to negotiation as of the RSA Effective Date and take any and all necessary and appropriate actions
in furtherance of the Plan and this Agreement, (C) take all commercially reasonable actions 

  
 7 

	 	
necessary to complete the Restructuring Transactions set forth in the Plan in accordance with each Milestone set forth in Section 6 of this Agreement, and (D) make commercially
reasonable efforts to obtain any and all required regulatory and/or third-party approvals necessary to consummate the Restructuring Transactions; (ii) shall not undertake any action materially inconsistent with the adoption and implementation
of the Plan and the speedy confirmation thereof, including, without limitation, filing any motion to reject this Agreement; and (iii) agrees to pay all fees and expenses of (i) Latham, as counsel to the Consenting Incremental Term Loan
Lenders, and (ii) Weil and Moelis & Company, as advisors to the Consenting OpCo Noteholders, in accordance with their respective engagement letters and any other contractual arrangements. 

 

	 	(b)	Notwithstanding anything to the contrary herein, nothing in this Agreement shall require the directors, officers, or managers of any Debtor (in such person’s capacity as a director, officer, or manager of such
Debtor) to (i) take any action that, after receiving advice from counsel, is inconsistent with such director’s, officer’s, or manager’s fiduciary obligations under applicable law or (ii) refrain from taking any action that,
after receiving advice from counsel, is consistent with such director’s, officer’s, or manager’s fiduciary obligations under applicable law. 

For the avoidance of doubt, nothing in this Section 8 shall be construed to limit or affect in any way (y) any Restructuring
Support Party’s rights under this Agreement, including upon occurrence of any Termination Event, or (z) the Debtors’ ability to engage in marketing efforts, discussions, and/or negotiations with any party regarding financing necessary
to administer the Chapter 11 Cases; provided, however, that to the extent the Debtors engage in any such marketing efforts, discussions, and/or negotiations, they shall provide updates to the Restructuring Support Parties (as
frequently as reasonably requested by the Restructuring Support Parties) regarding such efforts including answering any and all information and diligence requests regarding such efforts, discussions, and/or negotiations. 

9. Restructuring Support Party Termination Events. The Requisite Consenting Creditors shall have the right, but not the obligation,
upon notice to the other Parties, to terminate the obligations of their respective Restructuring Support Parties under this Agreement upon the occurrence of any of the following events, unless waived, in writing, by such Requisite Consenting
Creditors on a prospective or retroactive basis (each, a “Restructuring Support Party Termination Event”): 
  

	 	(a)	the failure to meet any of the Milestones in Section 6 unless (i) such failure is the result of any act, omission, or delay on the part of any Restructuring Support Parties whose Requisite Consenting
Creditors is seeking termination in violation of its obligations under this Agreement or (ii) such Milestone is extended in accordance with Section 6; 

  
 8 

	 	(b)	the (i) filing by any Debtor of a motion or other request for relief seeking to dismiss any of the Chapter 11 Cases or convert any of the Chapter 11 Cases to a case under chapter 7 of the Bankruptcy Code or
(ii) entry of an order by the Bankruptcy Court dismissing any of the Chapter 11 Cases or converting any of the Chapter 11 Cases to a case under chapter 7 of the Bankruptcy Code; 

 

	 	(c)	the appointment of a trustee, receiver, or examiner with expanded powers beyond those set forth in section 1106(a)(3) and (4) of the Bankruptcy Code in one or more of the Chapter 11 Cases; 

 

	 	(d)	any Debtor amends or modifies, or files a pleading seeking authority to amend or modify, the Definitive Documentation in a manner that is inconsistent with this Agreement; 

 

	 	(e)	any Debtor files or announces that it will file or joins in or supports any plan of reorganization other than the Plan, without the prior written consent of the Requisite Consenting Creditors; 

 

	 	(f)	any Debtor files any motion or application seeking authority to sell any material assets, without the prior written consent of the Requisite Consenting Creditors in their sole discretion; 

 

	 	(g)	the issuance by any governmental authority, including the Bankruptcy Court, any regulatory authority, or any other court of competent jurisdiction, of any ruling or order enjoining the substantial consummation of the
Restructuring Transactions on the terms and conditions set forth in the Plan Term Sheet or the Plan; provided, however, that the Debtors shall have five (5) business days after issuance of such ruling or order to obtain relief
that would allow consummation of the Restructuring Transactions in a manner that (i) does not prevent or diminish in a material way compliance with the terms of the Plan and this Agreement, and (ii) is acceptable to the Requisite
Consenting Creditors (or as to the Supermajority Matters, the Requisite Supermajority Consenting Creditors) in their sole discretion; 

  

	 	(h)	the Debtors file any motion authorizing the use of cash collateral or the entry into post-petition financing that is not consented to by the Requisite Consenting Creditors, which consent shall not unreasonably be
withheld; 

  

	 	(i)	a material breach by any Debtor of any representation, warranty, or covenant of such Debtor set forth in this Agreement (it being understood and agreed that any actions required to be taken by the Debtors that are
included in the Plan Term Sheet attached to this Agreement but not in this Agreement are to be considered “covenants” of the Debtors, and therefore covenants of this Agreement, notwithstanding the failure of any specific provision in the
Plan Term Sheet to be re-copied in this Agreement) that (to the extent curable) remains uncured for a period of ten (10) business days after the receipt by the Debtors of written notice of such breach; 

  
 9 

	 	(j)	either (i) any Debtor or any Restructuring Support Party files a motion, application, or adversary proceeding (or any Debtor or Restructuring Support Party supports any such motion, application, or adversary
proceeding filed or commenced by any third party) (A) challenging the validity, enforceability, perfection, or priority of, or seeking avoidance or subordination of, (x) the Incremental Term Loan Claims or the Incremental Term Loan
Guaranty Claims, (y) the liens securing such claims, or (z) the OpCo Note Claims; or (B) asserting any other cause of action against and/or with respect or relating to such claims or the prepetition liens securing such claims, to the
extent applicable; or (ii) the Bankruptcy Court (or any court with jurisdiction over the Chapter 11 Cases) enters an order providing relief against the interests of any Restructuring Support Party with respect to any of the foregoing causes of
action or proceedings; 

  

	 	(k)	any Debtor terminates its obligations under and in accordance with this Agreement; 

  

	 	(l)	any board, officer, or manager (or party with authority to act) of a Debtor (or the Debtors themselves) takes any action in furtherance of the rights available to it (or them) under Section 8(b) of this
Agreement that are materially inconsistent with the Restructuring Transactions as contemplated by this Agreement and/or the Plan Term Sheet attached hereto as Exhibit A; 

 

	 	(m)	the Bankruptcy Court enters an order in the Chapter 11 Cases terminating any of the Debtors’ exclusive right to file a plan or plans of reorganization pursuant to section 1121 of the Bankruptcy Code;

  

	 	(n)	the Bankruptcy Court denies approval of the RSA Assumption Motion; 

  

	 	(o)	any Debtor requests that the United States Trustee appoint an official committee of equity security holders (either preferred or common or both) or supports any such request; 

 

	 	(p)	the failure of any Definitive Documentation to comply with Section 3; or 

  

	 	(q)	the occurrence of any other material breach of this Agreement or the Plan Term Sheet not otherwise covered in this list by any Debtor that has not been cured (if susceptible to cure) within three (3) business days
after written notice to the Debtors of such breach by the Requisite Consenting Creditors (or as to the Supermajority Matters, the Requisite Supermajority Consenting Creditors) asserting such termination. 

10. The Debtors’ Termination Events. Each Debtor may, upon notice to the Restructuring Support Parties, terminate its obligations
under this Agreement upon the occurrence of any of the following events (each a “Company Termination Event,” and together 

  
 10 

 
with the Restructuring Support Party Termination Events, the “Termination Events”), in which case this Agreement shall terminate with respect to all Parties, subject to the
rights of the Debtors to fully or conditionally waive, in writing, on a prospective or retroactive basis, the occurrence of a Company Termination Event: 
  

	 	(a)	a breach by a Restructuring Support Party of any representation, warranty, or covenant of such Restructuring Support Party set forth in this Agreement that could reasonably be expected to have a material adverse impact
on the Restructuring Transactions or the consummation of the Restructuring Transactions that (to the extent curable) remains uncured for a period of ten (10) business days after the receipt by such Restructuring Support Party of written notice
and description of such breach; 

  

	 	(b)	the occurrence of a breach of this Agreement by any Restructuring Support Party that has the effect of materially impairing any of the Debtors’ ability to effectuate the Restructuring Transactions and has not been
cured (if susceptible to cure) within ten (10) business days after written notice to all Restructuring Support Parties of such breach and a description thereof; 

 

	 	(c)	upon written notice to the Restructuring Support Parties, if the board of directors or board of managers, as applicable, of a Debtor determines, after receiving advice from counsel, that proceeding with the
Restructuring Transactions (including, without limitation, the Plan or solicitation of the Plan) would be inconsistent with the exercise of its fiduciary duties; 

  

	 	(d)	the issuance by any governmental authority, including the Bankruptcy Court, any regulatory authority, or any other court of competent jurisdiction, of any ruling or order enjoining the substantial consummation of the
Restructuring Transactions; provided, however, that the Debtors have made commercially reasonable, good faith efforts to cure, vacate, or have overruled such ruling or order prior to terminating this Agreement; 

 

	 	(e)	the Requisite Consenting Creditors terminate their obligations under and in accordance with Section 9 of this Agreement; or 

 

	 	(f)	the failure to satisfy any requirement under Section 3 that the Plan, or any other agreement or document that is included in the Definitive Documentation, contain terms, conditions, representations,
warranties, and covenants consistent with the terms of this Agreement and be reasonably satisfactory to the Debtors. 

  
 11 

 11. Mutual Termination; Automatic Termination. This Agreement and the obligations of all
Parties hereunder may be terminated by mutual written agreement by and among the Debtors and the Requisite Supermajority Consenting Creditors. Notwithstanding anything in this Agreement to the contrary, this Agreement shall terminate automatically
upon the occurrence of the Plan Effective Date. 
 12. Automatic Stay. The Parties acknowledge that after the commencement of the
Chapter 11 Cases, the termination of this Agreement and the giving of notice of termination by any Party pursuant to this Agreement shall not be a violation of the automatic stay of section 362 of the Bankruptcy Code subject to the terms of any
order authorizing the assumption of this Agreement; provided, that nothing herein shall prejudice any Party’s rights to argue that the giving of notice of termination was not proper under the terms of this Agreement. 

13. Effect of Termination. The earliest date on which termination of this Agreement as to a Party is effective in accordance with
Sections 9, 10, or 11 of this Agreement shall be referred to, with respect to such Party, as a “Termination Date.” Upon the occurrence of a Termination Date, all Parties’ obligations under this
Agreement shall be terminated effective immediately, and the Parties hereto shall be released from all commitments, undertakings, and agreements hereunder, and any vote in favor of the Plan delivered by such Party or Parties shall be immediately
revoked and deemed void ab initio; provided, however, that each of the following shall survive any such termination: (a) any claim for breach of this Agreement that occurs prior to such Termination Date, and all rights and
remedies with respect to such claims shall not be prejudiced in any way; (b) the Debtors’ obligations in Section 16 of this Agreement accrued up to and including such Termination Date; and (c) Sections 13,
18, 21, 23, 24, 25, 26, 27, 28, 29, 30, 31, 35 and 36 hereof. 

14. Transfers of Claims and Interests. 
  

	 	(a)	 Each Restructuring Support Party shall not (i) sell, transfer, assign, pledge, grant a participation
interest in, or otherwise dispose of, directly or indirectly, its right, title, or interest in respect of any of such Restructuring Support Party’s claims against, or interests in, any Debtor, as applicable, in whole or in part, or
(ii) deposit any of such Restructuring Support Party’s claims against or interests in any Debtor, as applicable, into a voting trust, or grant any proxies, or enter into a voting agreement with respect to any such claims or interests (the
actions described in clauses (i) and (ii) are collectively referred to herein as a “Transfer” and the Restructuring Support Party making such Transfer is referred to herein as the “Transferor”), unless
such Transfer is to another Restructuring Support Party or any other entity that first agrees in writing to be bound by the terms of this Agreement by executing and delivering to counsel to the Debtors, counsel to the Consenting Incremental Term
Loan Lenders, and counsel to the Consenting OpCo Noteholders, a Transferee Joinder substantially in the form attached hereto as Exhibit B (the “Transferee Joinder”). With respect to claims against or interests in a
Debtor held by the relevant transferee upon consummation of a Transfer in accordance herewith, such transferee is deemed to make all of the representations, 

  
 12 

	 	
warranties, and covenants of a Restructuring Support Party, as applicable, set forth in this Agreement. Upon compliance with the foregoing, the Transferor shall be deemed to relinquish its rights
(and be released from its obligations, except for any claim for breach of this Agreement that occurs prior to such Transfer) under this Agreement to the extent of such transferred rights and obligations. Any Transfer made in violation of this
Sub-Clause (a) of this Section 14 shall be deemed null and void ab initio and of no force or effect, regardless of any prior notice provided to the Debtors and/or any Restructuring Support Party, and shall not create
any obligation or liability of any Debtor or any other Restructuring Support Party to the purported transferee. 

  

	 	(b)	Notwithstanding Sub-Clause (a) of this Section 14, (i) an entity that is acting in its capacity as a Qualified Marketmaker shall not be required to be or become a Restructuring Support Party
in order to effect any transfer (by purchase, sale, assignment, participation, or otherwise) of any claim against, or interest in, any Debtor, as applicable, by a Restructuring Support Party to a transferee; provided, that such
transfer by a Restructuring Support Party to a transferee shall be in all other respects in accordance with and subject to Sub-Clause (a) of this Section 14; and (ii) to the extent that a Restructuring Support Party,
acting in its capacity as a Qualified Marketmaker, acquires any claim against, or interest in, any Debtor from a holder of such claim or interest who is not a Restructuring Support Party, it may transfer (by purchase, sale, assignment,
participation, or otherwise) such claim or interest without the requirement that the transferee be or become a Restructuring Support Party in accordance with this Section 14. For purposes of this
Sub-Clause (b), a “Qualified Marketmaker” means an entity that (x) holds itself out to the market as standing ready in the ordinary course of its business to purchase from
customers and sell to customers claims against, or interests in, the Debtors (including debt securities or other debt) or enter with customers into long and short positions in claims against, or interests in, the Debtors (including debt securities
or other debt), in its capacity as a dealer or market maker in such claims against, or interests in, the Debtors, and (y) is in fact regularly in the business of making a market in claims against issuers or borrowers (including debt securities
or other debt). 

 15. Further Acquisition of Claims or Interests. Except as set forth in Section 14,
nothing in this Agreement shall be construed as precluding any Restructuring Support Party or any of its affiliates from acquiring additional ABL Claims, Term Loan Claims, Incremental Term Loan Claims, Incremental Term Loan Guaranty Claims, OpCo
Note Claims, HoldCo Note Claims, Existing HoldCo Equity Interests, or interests in the instruments underlying the ABL Claims, Term Loan Claims, Incremental Term Loan Claims, Incremental Term Loan Guaranty Claims, OpCo Note Claims, HoldCo Note
Claims, or Existing HoldCo Equity Interests; provided, however, that any additional ABL Claims, Term Loan Claims, Incremental Term Loan Claims, Incremental Term Loan Guaranty Claims, OpCo Note Claims, HoldCo Note Claims, Existing
HoldCo Equity Interests, or interests in the underlying instruments acquired by any 

  
 13 

 
Restructuring Support Party and with respect to which such Restructuring Support Party is the legal owner, beneficial owner, and/or investment advisor or manager of or with power and/or authority
to bind any claims or interests held by it shall automatically be subject to the terms and conditions of this Agreement. Upon any such further acquisition, such Restructuring Support Party shall promptly notify counsel to the Debtors, Latham, as
counsel to the Consenting Incremental Term Loan Lenders, and Weil, as counsel to the Consenting OpCo Noteholders, and such acquisition shall become subject to the terms of this Agreement. 

16. Fees and Expenses. Fees and expenses shall be paid according to the terms and conditions set forth in the Plan Term Sheet. 

17. Consents and Acknowledgments. Each Party irrevocably acknowledges and agrees that this Agreement is not and shall not be deemed to
be a solicitation for consents to the Plan. The acceptance of the Plan by each of the Restructuring Support Parties will not be solicited until such Parties have received the Disclosure Statement and related ballots in accordance with applicable
law, and will be subject to sections 1125, 1126, and 1127 of the Bankruptcy Code. In addition, this Agreement does not constitute an offer to issue or sell securities to any Person, or the solicitation of an offer to acquire or buy securities, in
any jurisdiction where such offer or solicitation would be unlawful. 
 18. Representations and Warranties. 

 

	 	(a)	Each Restructuring Support Party hereby represents and warrants on a several and not joint basis for itself and not any other person or entity that the following statements are true, correct, and complete as of the date
hereof: 

  

	 	(i)	it has the requisite organizational power and authority to enter into this Agreement and to carry out the transactions contemplated by, and perform its respective obligations under, this Agreement; 

 

	 	(ii)	the execution and delivery of this Agreement and the performance of its obligations hereunder have been duly authorized by all necessary corporate or other organizational action on its part; 

 

	 	(iii)	the execution, delivery, and performance by it of this Agreement does not violate any provision of law, rule, or regulation applicable to it, or its certificate of incorporation, or bylaws, or other organizational
documents; 

  

	 	(iv)	it is an “accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”), with sufficient knowledge and
experience to evaluate properly the terms and conditions of this Agreement and to consult with its legal and financial advisors with respect to its investment decision to execute this Agreement, and it has made its own analysis and decision to enter
into this Agreement; 

  
 14 

	 	(v)	it has reviewed, or has had the opportunity to review, with the assistance of professional and legal advisors of its choosing, all information it deems necessary and appropriate for it to evaluate the financial risks
inherent in the Restructuring Transactions and to accept the terms of the Plan; 

  

	 	(vi)	it (A) either (1) is the sole legal owner, beneficial owner, and/or investment advisor or manager of or with power and/or authority to bind the claims and interests identified below its name on its signature
page hereof and in the amounts set forth therein, or (2) has all necessary investment or voting discretion with respect to the principal amount of claims and interests identified below its name on its signature page hereof, and has the power
and authority to bind the owner(s) of such claims and interests to the terms of this Agreement; (B) does not directly own any ABL Claims, Term Loan Claims, Incremental Term Loan Claims, OpCo Note Claims, HoldCo Note Claims, or Existing HoldCo
Equity Interests, other than as identified below its name on its signature page hereof; and (C) has made no assignment, sale, participation, grant, conveyance, pledge, or other transfer of, and has not entered into any other agreement to
assign, sell, use, participate, grant, convey, pledge, or otherwise transfer any portion of its right, title, or interests in such claims; and 

  

	 	(vii)	it has no agreement, understanding, or other arrangement (whether oral, written, or otherwise) with any other Restructuring Support Party regarding the transfer or sale of all or a material portion of the Debtors’
assets to any party whatsoever. 

  

	 	(b)	Each Debtor hereby represents and warrants on a joint and several basis (and not any other person or entity other than the Debtors) that the following statements are true, correct, and complete as of the date hereof:

  

	 	(i)	it has the requisite corporate or other organizational power and authority to enter into this Agreement and to carry out the transactions contemplated by, and perform its respective obligations under, this Agreement;

  

	 	(ii)	the execution and delivery of this Agreement and the performance of its obligations hereunder have been duly authorized by all necessary corporate or other organizational action on its part; 

  
 15 

	 	(iii)	the execution and delivery by it of this Agreement does not (A) violate its certificates of incorporation, or bylaws, or other organizational documents, or those of any of its affiliates, or (B) result in a
breach of, or constitute (with due notice or lapse of time or both) a default (other than, for the avoidance of doubt, a breach or default that would be triggered as a result of the Chapter 11 Cases or any Debtor’s undertaking to implement
the Restructuring Transactions through the Chapter 11 Cases) under any material contractual obligation to which it or any of its affiliates is a party; 

  

	 	(iv)	the execution and delivery by it of this Agreement does not require any registration or filing with, the consent or approval of, notice to, or any other action with any federal, state, or other governmental authority or
regulatory body, other than, for the avoidance of doubt, the actions with governmental authorities or regulatory bodies required in connection with implementation of the Restructuring Transactions; 

 

	 	(v)	(A) the offer and sale of the Reorganized Equity has not been, and will not be, registered under the Securities Act and (B) the offering and issuance of the Reorganized Equity is intended to be exempt from
registration under the Securities Act pursuant to Section 4(2) of the Securities Act and Regulation D thereunder or pursuant to section 1145 of the Bankruptcy Code; 

 

	 	(vi)	subject to the provisions of sections 1125 and 1126 of the Bankruptcy Code and, to the extent applicable, approval by the Bankruptcy Court, this Agreement is a legally valid and binding obligation of each Debtor and is
enforceable against each Debtor in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, or other similar laws relating to or limiting creditors’ rights generally, or by equitable
principles relating to enforceability; and 

  

	 	(vii)	it has sufficient knowledge and experience to evaluate properly the terms and conditions of the Plan and this Agreement, and has been afforded the opportunity to consult with its legal and financial advisors with
respect to its decision to execute this Agreement, and it has made its own analysis and decision to enter into this Agreement and otherwise investigated this matter to its full satisfaction. 

19. Creditors’ Committee. Each Restructuring Support Party agrees not to request that the United States Trustee appoint an
official committee of creditors in the Chapter 11 Cases. Notwithstanding anything herein to the contrary, if any Restructuring Support Party is appointed to and serves on an official committee of creditors in the Chapter 11 Cases, the terms of this
Agreement shall not be construed so as to limit such Restructuring Support Party’s exercise of its fiduciary duties to any person arising from its service on such committee, and any such exercise

  
 16 

 
of such fiduciary duties shall not be deemed to constitute a breach of the terms of this Agreement; provided, that nothing in this Agreement shall be construed as requiring any
Restructuring Support Party to serve on any official committee in any such chapter 11 case. 
 20. Survival of Agreement. Each of the
Parties acknowledges and agrees that this Agreement is being executed in connection with negotiations concerning a possible financial restructuring of the Debtors and in contemplation of possible chapter 11 filings by the Debtors and the rights
granted in this Agreement are enforceable by each signatory hereto without approval of any court, including the Bankruptcy Court. 
 21.
Right to Participate in Proposed Contribution. In the event that the Requisite Consenting Creditors and the Requisite Supermajority Consenting Creditors, as applicable, agree to support a Proposed Contribution, each Consenting OpCo Noteholder
shall be provided the opportunity to participate in the funding of any backstop related to such Proposed Contribution on a pro rata basis (in an amount commensurate with such Consenting OpCo Noteholder’s aggregate principal outstanding
OpCo Note Claims held at the time of funding such backstop). Any fees that are provided for in connection with such Proposed Contribution shall only be payable to any such participating Consenting OpCo Noteholder on a pro rata basis
commensurate with the amount of the backstop actually funded on the date earned. 
 22. Waiver. If the transactions contemplated
herein are not consummated, or following the occurrence of a Termination Date, if applicable, nothing herein shall be construed as a waiver by any Party of any or all of such Party’s rights, other than as provided in Section 17, and
the Parties expressly reserve any and all of their respective rights. The Parties acknowledge that this Agreement, the Plan, and all negotiations relating hereto are part of a proposed settlement of matters that could otherwise be the subject of
litigation. Pursuant to Rule 408 of the Federal Rules of Evidence, any applicable state rules of evidence, and any other applicable law, foreign or domestic, the Plan Term Sheet, this Agreement, the Plan, any related documents, and all negotiations
relating thereto shall not be admissible into evidence in any proceeding, or used by any party for any reason whatsoever, including in any proceeding, other than a proceeding to enforce its terms. 

23. Relationship Among Parties. Notwithstanding anything herein to the contrary, the duties and obligations of the Restructuring
Support Parties under this Agreement shall be several, not joint. No Party shall have any responsibility by virtue of this Agreement for any trading by any other entity. No prior history, pattern, or practice of sharing confidences among or between
the Parties shall in any way affect or negate this Agreement. 
 24. Specific Performance. It is understood and agreed by the Parties
that money damages would be an insufficient remedy for any breach of this Agreement by any Party and each non-breaching Party shall be entitled to seek specific performance and injunctive or other equitable relief as a remedy of any such breach of
this Agreement, including, without limitation, an order of the Bankruptcy Court or other court of competent jurisdiction requiring any Party to comply promptly with any of its obligations hereunder. 

  
 17 

 25. Governing Law & Jurisdiction. This Agreement shall be governed by, and
construed in accordance with, the laws of the State of New York, without regard to such state’s choice of law provisions which would require the application of the law of any other jurisdiction. By its execution and delivery of this Agreement,
each Party irrevocably and unconditionally agrees for itself that any legal action, suit, or proceeding against it with respect to any matter arising under or arising out of or in connection with this Agreement or for recognition or enforcement of
any judgment rendered in any such action, suit, or proceeding, may be brought in the United States District Court for the Southern District of New York, and by executing and delivering this Agreement, each of the Parties irrevocably accepts and
submits itself to the exclusive jurisdiction of such court, generally and unconditionally, with respect to any such action, suit, or proceeding. Notwithstanding the foregoing consent to New York jurisdiction, if the Chapter 11 Cases are commenced,
each Party agrees that the Bankruptcy Court shall have exclusive jurisdiction of all matters arising out of or in connection with this Agreement. By executing and delivering this Agreement, and upon commencement of the Chapter 11 Cases, each of the
Parties irrevocably and unconditionally submits to the personal jurisdiction of the Bankruptcy Court solely for purposes of any action, suit, proceeding, or other contested matter arising out of or relating to this Agreement, or for recognition or
enforcement of any judgment rendered or order entered in any such action, suit, proceeding, or other contested matter. 
 26. Waiver of
Right to Trial by Jury. Each of the Parties waives any right to have a jury participate in resolving any dispute, whether sounding in contract, tort, or otherwise, between any of the Parties arising out of, connected with, relating to, or
incidental to the relationship established between any of them in connection with this Agreement. Instead, any disputes resolved in court shall be resolved in a bench trial without a jury. 

27. Successors and Assigns. Except as otherwise provided in this Agreement, this Agreement is intended to bind and inure to the benefit
of each of the Parties and each of their respective permitted successors, assigns, heirs, executors, administrators, and representatives. 

28. No Third-Party Beneficiaries. Unless expressly stated herein, this Agreement shall be solely for the benefit of the Parties and no
other person or entity shall be a third-party beneficiary of this Agreement. 
 29. Notices. All notices (including, without
limitation, any notice of termination or breach) and other communications from any Party hereunder shall be in writing and shall be deemed to have been duly given if personally delivered by courier service, messenger, email, or facsimile to the
other Parties at the applicable addresses below, or such other addresses as may be furnished hereafter by notice in writing. Any notice of termination or breach shall be delivered to all other Parties. 

 

	 	(a)	If to any Debtor: 

 Seventy Seven Energy Inc. 

Attn: David Treadwell 
 777 N.W.
63rd Street 
 Oklahoma City, OK 73116 

Tel: (405) 608-7704 

Email: dtreadwell@77nrg.com 

  
 18 

 With a copy to: 

Baker Botts L.L.P. 
 Attn:
Shalla Prichard 
 Attn: Emanuel Grillo 

Tel: (713) 229-1283 
 Tel:
(212) 408-2519 
 Fax: (212) 259-2519 

Email: shalla.prichard@bakerbotts.com 

 emanuel.grillo@bakerbotts.com 
  

	 	(b)	Consenting Incremental Term Loan Lenders 

 Latham & Watkins LLP 

Attn: Mark A. Broude 
 885 Third
Avenue 
 New York, NY 10022-4834 

Tel: (212) 906-1384 

Email: mark.broude@lw.com 
  

	 	(c)	Consenting OpCo Noteholders: 

 Weil, Gotshal & Manges LLP 

Attn: Matthew S. Barr 
 Attn:
David N. Griffiths 
 767 Fifth Avenue 

New York, NY 10153-0119 
 Tel:
(212) 310-8767 
 Tel: (212) 310-8729 

Fax: (212) 310-8007 

Email: matt.barr@weil.com 

 david.griffiths@weil.com 

30. Entire Agreement. This Agreement (including the Exhibits and Schedules) constitutes the entire agreement of the Parties with
respect to the subject matter of this Agreement, and supersedes all prior negotiations, agreements, and understandings, whether written or oral, among the Parties with respect to the subject matter of this Agreement. 

31. Amendments. Except as otherwise provided herein, this Agreement may not be modified, amended, or supplemented except in a writing
executed and delivered by the Debtors and the Requisite Consenting Creditors; provided, that, subject to Section 5, Sections 4, 7, 9, 20, this Section 31, and any provision (or, as
applicable, sub-provision) of this Agreement (including any Exhibits and Schedules hereto) requiring the consent of the Requisite Supermajority Consenting Creditors shall not be modified, amended, waived, or supplemented without the prior written
consent of the Debtors and the Requisite Supermajority Consenting Creditors. 

  
 19 

 32. Reservation of Rights. 

 

	 	(a)	Except as expressly provided in this Agreement or the Plan Term Sheet, including Section 7(a) of this Agreement, nothing herein is intended to, or does, in any manner waive, limit, impair, or restrict the
ability of any Party to protect and preserve its rights, remedies and interests, including without limitation, its claims against any of the other Parties. 

  

	 	(b)	Without limiting Sub-Clause (a) of this Section 32 in any way, if the Plan is not consummated in the manner set forth, and on the timeline set forth, in this Agreement and Plan Term Sheet, or if
this Agreement is terminated for any reason, nothing shall be construed herein as a waiver by any Party of any or all of such Party’s rights, remedies, claims, and defenses and the Parties expressly reserve any and all of their respective
rights, remedies, claims and defenses, subject to Section 24 of this Agreement. The Plan Term Sheet, this Agreement, the Plan, and any related document shall in no event be construed as or be deemed to be evidence of an admission or
concession on the part of any Party of any claim or fault or liability or damages whatsoever. Each of the Parties denies any and all wrongdoing or liability of any kind and does not concede any infirmity in the claims or defenses which it has
asserted or could assert. 

 33. Counterparts. This Agreement may be executed in one or more counterparts, each of
which, when so executed, shall constitute the same instrument, and the counterparts may be delivered by facsimile transmission or by electronic mail in portable document format (.pdf). 

34. Public Disclosure. This Agreement, as well as its terms, its existence, and the existence of the negotiation of its terms are
expressly subject to any existing confidentiality agreements executed by and among any of the Parties as of the date hereof; provided, however, that, (a) on or after the Effective Date, the Debtors may make any public disclosure
or filing with respect to the subject matter of this Agreement, including, without limitation, the existence of, or the terms of, this Agreement or any other material term of the transaction contemplated herein, that, based upon the advice of
counsel, is required to be made (i) by applicable law or regulation or (ii) pursuant to any rules or regulations of the New York Stock Exchange, without the express written consent of the other Parties and (b) after the Petition Date,
the Parties may (i) disclose the existence of, or the terms of, this Agreement or any other material term of the transaction contemplated herein without the express written consent of the other Parties and (ii) file a copy of this
Agreement with the Bankruptcy Court; provided, however, that, in all instances, the Parties may not disclose, and shall redact the holdings information of every Party to this Agreement as of the date hereof and at any time hereafter.
In addition, each Party to this Agreement shall have the right, at any time, to know the identities and holdings information of every other Party to this Agreement, but must keep such information confidential and may not disclose such information to
any person except as may be compelled by a court of competent jurisdiction. The Debtors take no position with regard to whether such information may be material non-public information, but may not disclose such information other than on a
confidential basis or as may be ordered by the Bankruptcy Court. 

  
 20 

 35. Headings. The section headings of this Agreement are for convenience of reference only
and shall not, for any purpose, be deemed a part of this Agreement. 
 36. Interpretation. This Agreement is the product of
negotiations among the Parties, and the enforcement or interpretation hereof, is to be interpreted in a neutral manner, and any presumption with regard to interpretation for or against any Party by reason of that Party having drafted or caused to be
drafted this Agreement or any portion hereof, shall not be effective in regard to the interpretation hereof. 
 [Signatures and exhibits
follow.] 

  
 21 

 IN WITNESS WHEREOF, this RSA has been duly executed as of the date first above written. 

 

			
	SEVENTY SEVEN ENERGY INC.
		
	By:	 	 /s/ Cary Baetz

	Name:	 	Cary Baetz
	Title:	 	Chief Financial Officer
	
	SEVENTY SEVEN FINANCE INC.
		
	By:	 	 /s/ Cary Baetz

	Name:	 	Cary Baetz
	Title:	 	Chief Financial Officer
	
	SEVENTY SEVEN OPERATING LLC
		
	By:	 	 /s/ Cary Baetz

	Name:	 	Cary Baetz
	Title:	 	Chief Financial Officer
	
	SEVENTY SEVEN LAND COMPANY LLC
		
	By:	 	 /s/ Cary Baetz

	Name:	 	Cary Baetz
	Title:	 	Chief Financial Officer
	
	KEYSTONE ROCK & EXCAVATION, L.L.C.
		
	By:	 	 /s/ Cary Baetz

	Name:	 	Cary Baetz
	Title:	 	Chief Financial Officer

 
			
	PERFORMANCE TECHNOLOGIES, L.L.C.
		
	By:	 	 /s/ Cary Baetz

	Name:	 	Cary Baetz
	Title:	 	Chief Financial Officer
	
	PTL PROP SOLUTIONS, L.L.C.
		
	By:	 	 /s/ Cary Baetz

	Name:	 	Cary Baetz
	Title:	 	Chief Financial Officer
	
	WESTERN WISCONSIN SAND COMPANY, LLC
		
	By:	 	 /s/ Cary Baetz

	Name:	 	Cary Baetz
	Title:	 	Chief Financial Officer
	
	NOMAC DRILLING, L.L.C.
		
	By:	 	 /s/ Cary Baetz

	Name:	 	Cary Baetz
	Title:	 	Chief Financial Officer
	
	SSE LEASING, LLC
		
	By:	 	 /s/ Cary Baetz

	Name:	 	Cary Baetz
	Title:	 	Chief Financial Officer
	
	GREAT PLAINS OILFIELD RENTAL, L.L.C.
		
	By:	 	 /s/ Cary Baetz

	Name:	 	Cary Baetz
	Title:	 	Chief Financial Officer

 AGREED TO AND ACCEPTED 

this 13th day of April, 2016 
  

			
	BLUEMOUNTAIN CAPITAL MANAGEMENT, LLC, on behalf of itself and the funds it manages
		
	By:	 	 /s/ David M. O’Mara

		 	Its: Authorized Signatory

  

			
	Taxpayer I.D. #	 	  

 AGREED TO AND ACCEPTED 

this 13th day of April, 2016 
  

			
	MUDRICK CAPITAL MANAGEMENT, LLC, on behalf of itself and the funds it manages
		
	By:	 	 /s/ Jason Mudrick

		 	Its: Authorized Signatory

  

			
	Taxpayer I.D. #	 	27-0367034

 AGREED TO AND ACCEPTED 

this 13th day of April, 2016 
  

			
	AXAR CAPITAL MANAGEMENT, LLC, on behalf of itself and the funds it manages
		
	By:	 	 /s/ Andrew Axelrod

		 	Its: Authorized Signatory

  

			
	Taxpayer I.D. #	 	47-3227176

 Exhibit A to the Restructuring Support Agreement 

Plan Term Sheet 

 Execution Version 

April 15, 2016 

SEVENTY SEVEN ENERGY, INC., ET AL. 

PLAN TERM SHEET 

APRIL 15, 2016 
 This
term sheet (the “Term Sheet”) sets forth the principal terms of a proposed financial restructuring (the “Restructuring”) of the existing debt and other obligations of Seventy Seven Energy, Inc.
(“HoldCo”) and the subsidiaries set forth below (collectively, the “Company”), including Seventy Seven Operating LLC (“OpCo”), pursuant to a joint chapter 11 plan of
reorganization under the United States Bankruptcy Code (as defined below) (a “Plan”). Capitalized terms herein not otherwise defined shall have the meanings given them in that certain Restructuring Support Agreement dated as
of April 15, 2016, to which this Term Sheet is an exhibit (the “Restructuring Support Agreement”). As reflected in the Restructuring Support Agreement, the Restructuring is supported by the Consenting Incremental Term
Loan Lenders and the Consenting OpCo Noteholders (collectively, the “Restructuring Support Parties”). 
 THIS TERM SHEET DOES NOT
CONSTITUTE (NOR SHALL IT BE CONSTRUED AS) A SOLICITATION OF ACCEPTANCES OR REJECTIONS AS TO ANY PLAN OF REORGANIZATION OR AS AN OFFER TO BUY, SELL OR EXCHANGE ANY OF THE SECURITIES OR INSTRUMENTS DESCRIBED HEREIN, IT BEING UNDERSTOOD THAT SUCH A
SOLICITATION, IF ANY, ONLY WILL BE MADE IN COMPLIANCE WITH APPLICABLE PROVISIONS OF THE BANKRUPTCY CODE AND/OR OTHER APPLICABLE LAWS. THIS TERM SHEET DOES NOT ADDRESS ALL TERMS THAT WOULD BE REQUIRED IN CONNECTION WITH ANY POTENTIAL RESTRUCTURING
AND ENTRY INTO OR THE CREATION OF ANY BINDING AGREEMENT IS SUBJECT TO THE NEGOTIATION AND EXECUTION OF DEFINITIVE DOCUMENTATION IN FORM AND SUBSTANCE CONSISTENT WITH THIS TERM SHEET AND SATISFACTORY TO THE COMPANY AND THE REQUISITE CONSENTING
CREDITORS. THIS TERM SHEET HAS BEEN PRODUCED FOR DISCUSSION AND SETTLEMENT PURPOSES ONLY AND IS SUBJECT TO THE PROVISIONS OF RULE 408 OF THE FEDERAL RULES OF EVIDENCE AND OTHER SIMILAR APPLICABLE STATE AND FEDERAL RULES. THIS TERM SHEET AND THE
INFORMATION CONTAINED HEREIN IS STRICTLY CONFIDENTIAL AND SHALL NOT BE SHARED WITH ANY OTHER PARTY ABSENT THE PRIOR WRITTEN CONSENT OF THE COMPANY AND THE REQUISITE CONSENTING CREDITORS. 

SUMMARY OF PRINCIPAL TERMS AND CONDITIONS 
  

			
	Transaction Overview	  	
		
	Debtors:	  	HoldCo; OpCo; Seventy Seven Land Company LLC (“LandCo”); Seventy Seven Finance Inc. (“SSF”); Performance Technologies, L.L.C. (“PTL”); PTL Prop Solutions,
L.L.C. (“PTL Prop”); Western Wisconsin Sand Company, LLC; Nomac Drilling, L.L.C. (“Nomac”); SSE Leasing LLC (“SSE Leasing”); Keystone Rock & Excavation, L.L.C.; and Great
Plains Oilfield Rental, L.L.C. (“Great Plains”) (collectively, the “Debtors”).
		
	Reorganized Debtors:	  	Each of the Debtors as reorganized under the Plan (the “Reorganized Debtors”).

			
	Chapter 11 Cases:	  	The jointly-administered voluntary cases to be commenced by the Debtors under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District
of Delaware (the “Bankruptcy Court”).
		
	Claims and Interests to be Restructured:	  	 Undrawn letters of credit in an aggregate face amount equal to approximately $14.7 million, plus all other amounts outstanding (the
“ABL Claims”), under that certain Credit Agreement, dated as of June 25, 2014, by and among Nomac, PTL and Great Plains, as borrowers, HoldCo, OpCo, LandCo, SSE Leasing and PTL Prop, as guarantors, Wells Fargo Bank, National
Association (“Wells Fargo”), as administrative agent (the “ABL Agent”), the lenders party thereto (the “ABL Lenders”), and certain other parties thereto (as amended, modified or
otherwise supplemented from time to time prior to the date hereof, the “ABL Facility”);
  

$393 million in unpaid principal, plus all other amounts outstanding against OpCo (the “Term Loan Claims”) under that certain Term Loan
Credit Agreement, dated as of June 25, 2014, by and among HoldCo, as parent, OpCo, as borrower, HoldCo, Great Plains, Nomac, PTL, PTL Prop, SSE Leasing and LandCo, as guarantors, Wilmington Trust, N.A. (“Wilmington Trust”),
as successor administrative agent (the “Term Loan Agent”), and the lenders party thereto (the “Term Loan Lenders”) (as amended, modified or otherwise supplemented from time to time prior to the date
hereof, the “Term Loan”) and all amounts outstanding against HoldCo, Great Plains, Nomac, PTL, PTL Prop, SSE Leasing and LandCo (“Term Loan Guaranty Claims”) under that certain Guaranty, dated as of
June 25, 2014, between HoldCo, Great Plains, Nomac, PTL, PTL Prop, SSE Leasing and LandCo, as guarantors, and the Term Loan Agent, (the “Term Loan Guaranty”);

 
 $99 million in unpaid principal, plus all other amounts outstanding against OpCo (the
“Incremental Term Loan Claims”) under that certain Incremental Term Supplement (Tranche A), dated as of May 13, 2015, by and among HoldCo, as parent, OpCo, as borrower, HoldCo, Great Plains, Nomac, PTL, PTL Prop, SSE Leasing
and LandCo, as guarantors, Wilmington Trust, as successor administrative agent (the “Incremental Term Loan Agent”), and the lenders party thereto (the “Incremental Term Loan Lenders”) (as amended,
modified or otherwise supplemented from time to time prior to the date hereof, the “Incremental Term Loan”) and all amounts outstanding against HoldCo, Great Plains, Nomac, PTL, PTL Prop, SSE Leasing and LandCo
(“Incremental Term Loan Guaranty Claims”) under that certain Guaranty, dated as of June 25, 2014, between HoldCo, Great Plains, Nomac, PTL, PTL Prop, SSE Leasing and LandCo, as guarantors, and the Incremental Term Loan Agent
(the “Incremental Term Loan Guaranty”);

  
 2 

			
		  	 $650 million in unpaid principal, plus all other amounts outstanding against OpCo and SSF (the “OpCo Note Claims”)
under the 6.625% Senior Notes Due 2019 (the “OpCo Notes” and, the beneficial holders of such OpCo Notes, the “OpCo Noteholders”) pursuant to that certain Indenture, dated as of October 28, 2011,
by and among OpCo, as issuer, SSF, as co-issuer, Nomac, PTL, Great Plains, PTL Prop, LandCo, HoldCo and SSE Leasing, as guarantors, and The Bank of New York Mellon Trust Company, N.A., as trustee (as amended, modified or otherwise supplemented from
time to time prior to the date hereof, the “OpCo Notes Indenture”) and all amounts outstanding against Nomac, PTL, Great Plains, PTL Prop, LandCo, HoldCo and SSE Leasing (the “OpCo Note Guaranty
Claims”) under the OpCo Notes Indenture;
  
 $450 million in unpaid
principal, plus all other amounts outstanding against HoldCo (the “HoldCo Note Claims”) under the 6.50% Senior Notes Due 2022 (the “HoldCo Notes” and, the beneficial holders of such HoldCo Notes, the
“HoldCo Noteholders”) pursuant to that certain Indenture, dated as of June 26, 2014, by and between HoldCo, as issuer, and Wells Fargo, as trustee (as amended, modified or otherwise supplemented from time to time prior
to the date hereof, the “HoldCo Notes Indenture”);
  
 Any Claims
against the Company (other than the OpCo Note Claims, the OpCo Note Guaranty Claims, the HoldCo Note Claims or any Intercompany Claims) that are neither secured nor entitled to priority under the Bankruptcy Code or any order of the Bankruptcy Court
(the “General Unsecured Claims”);
  
 Any Claims against a Debtor
held by another Debtor (the “Intercompany Claims”);
  
 Interests
in shares of common stock of OpCo, 100% of which are owned by HoldCo (the “Existing OpCo Equity Interests”);
  

Interests of shares of common stock of HoldCo, of which 58,928,042 shares were outstanding as of April 13, 2016 (the “Existing HoldCo Equity
Interests”);
  
 Any Interests in a Debtor held by another Debtor (other than
the Existing OpCo Equity Interests and the Existing HoldCo Equity Interests) (the “Intercompany Interests”).

		
	DIP Financing and Use of Cash Collateral:	  	The Debtors shall obtain a commitment for revolving debtor-in-possession financing facility in the aggregate principal amount of $100,000,000 (the “New DIP ABL Credit Facility”). The terms and conditions
of the commitment and any New DIP ABL

  
 3 

			
		  	 Credit Facility shall be in form and substance reasonably acceptable to the Requisite Consenting Creditors; provided,
however, that the commitment amount, the interest rate, the maturity date, and all financial covenants in the New DIP ABL Credit Facility shall be reasonably acceptable to the Requisite Supermajority Consenting Creditors.

 
 Promptly upon commencement of the Chapter 11 Cases, the Company will seek authority to
enter into the New DIP ABL Credit Facility and use cash collateral to repay the obligations outstanding under the ABL Facility and to fund the administration of the Chapter 11 Cases. In connection with the Company’s entry into the New DIP ABL
Credit Facility and use of cash collateral, the Company shall provide “adequate protection” (as such term is defined in sections 361 and 363 of the Bankruptcy Code) to the ABL Lenders on terms acceptable to the Requisite Consenting
Creditors.
  
 Any order approving entry into the New DIP ABL Credit Facility and the use
of cash collateral shall be acceptable to the Requisite Consenting Creditors.

		
	Exit Facility:	  	On the effective date of the Plan (the “Effective Date”), the Company will enter into a revolving credit facility in the aggregate principal amount of approximately $100,000,000 (the “Exit
Facility”). The Exit Facility may be (a) an amendment and restatement of the New DIP ABL Credit Facility or (b) a new facility, and the terms and conditions of the Exit Facility shall be in form and substance reasonably
acceptable to the Requisite Consenting Creditors; provided, however, that the commitment amount, the interest rate, the maturity date, and all financial covenants in the Exit Facility shall be reasonably acceptable to the
Requisite Supermajority Consenting Creditors. The proceeds from the Exit Facility, plus cash on hand, will be used to (i) provide additional liquidity for working capital and general corporate purposes, (ii) pay all reasonable and
documented fees and expenses incurred by the Company and the Restructuring Support Parties, and expenses of their legal and financial advisors (but no more than one legal counsel, one local counsel and one financial advisor for each of the Company,
the Consenting Incremental Term Loan Lenders and the Consenting OpCo Noteholders) (iii) fund Plan distributions and (iv) fund the closing of the administration of the Chapter 11 Cases.
		
	Reorganized HoldCo/Reorganized OpCo Structure:	  	On the Effective Date the Existing HoldCo Equity Interests shall be cancelled. The Existing OpCo Equity Interests held by HoldCo shall remain outstanding and reorganized HoldCo (“Reorganized HoldCo”) shall
issue newly authorized common shares of Reorganized HoldCo in an amount to be agreed upon by the Company and the Requisite Supermajority Consenting Creditors (the “New HoldCo Common Shares”)
and

  
 4 

			
		
		  	(a) distribute 96.75%, on a fully diluted basis, of the New HoldCo Common Shares to reorganized OpCo (“Reorganized OpCo”) for distribution to the OpCo Noteholders in satisfaction of their OpCo Note
Claims against OpCo and their OpCo Note Guaranty Claims against Nomac, PTL, Great Plains, PTL Prop, LandCo and SSE Leasing pursuant to the terms and conditions described below, and (b) as consideration negotiated by HoldCo in connection with
the Restructuring, distribute 3.25% of the New HoldCo Common Shares (the “HoldCo Creditor New Common Share Pool”) to holders of the HoldCo Notes Claims and the OpCo Notes Guaranty Claims in their capacities as creditors of
HoldCo. Distributions from the HoldCo Creditor New Common Share Pool will depend upon whether the class of HoldCo Notes Claims votes to accept or reject the Plan as more fully set forth in “Summary of Distribution of New HoldCo Common
Shares” and elsewhere below.
		
	Treatment of Claims and Interests	  	
		
	 Administrative Expense
 (including
503(b)(9) Claims),
 Priority Tax, and Other Priority Claims:
	  	 Each holder of an Allowed administrative expense claim shall (a) be paid in full in cash (i) on the date such amounts become due
and owing in the ordinary course of business or (ii) on or as soon as practicable after the Effective Date or (b) be entitled to such other treatment as agreed to by such holder, the Debtors and the Requisite Consenting Creditors. For
purposes of this Term Sheet, “Allowed” shall have the same meaning set forth in section 502 of the Bankruptcy Code and as further defined in the Plan.
  

Each holder of an Allowed priority tax claim shall (a) be paid in full in deferred cash payments over a period not longer than five (5) years after the
Petition Date or (b) be entitled to such other treatment as agreed to by such holder, the Debtors and the Requisite Consenting Creditors.
  

Each holder of any other Allowed priority claim shall (a) be paid in full in cash on or as soon as practicable after the Effective Date or (b) be
entitled to such other treatment as agreed to by such holder, the Debtors and the Requisite Consenting Creditors.

		
	Other Secured Claims:	  	On or as soon as practicable after the Effective Date, to the extent any Allowed prepetition secured claims exist other than the ABL Claims, the Term Loan Claims or the Incremental Term Loan Claims (the “Other Secured
Claims”), such Other Secured Claims shall be satisfied by either (a) payment in full in cash, (b) reinstatement pursuant to section 1124 of the Bankruptcy Code, (c) such other recovery necessary to satisfy section 1129 of the Bankruptcy
Code or (d) such other treatment as agreed to by such holder, the Debtors and the Requisite Consenting Creditors.

  
 5 

			
		
		  	Unimpaired - Deemed to Accept
		
	Term Loan Claims:	  	 The legal, equitable and contractual rights of the holders of Allowed Term Loan Claims are unaltered by the Plan. On or as soon as
practicable after the Effective Date, the Allowed Term Loan Claims shall be reinstated pursuant to section 1124 of the Bankruptcy Code on the terms set forth in the Term Loan.
  

Allowed in the aggregate principal amount of at least $393 million plus accrued interest, fees and expenses.

 
 Unimpaired - Deemed to Accept

		
	Incremental Term Loan Claims	  	 On or as soon as practicable after the Effective Date, each holder of Allowed Incremental Term Loan Claims shall receive its pro rata
share of (i) a consent fee in an amount equal to 2.0% of the aggregate amount of the Allowed Incremental Term Loan Claims and (ii) $15 million, in full and final satisfaction of $15 million of the Allowed Incremental Term Loan Claims;
provided, that the Incremental Term Loan Lenders shall waive the right to any prepayment premium that may be payable under the Incremental Term Loan in connection with such payment. The remaining $84 million of Allowed Incremental Term Loan
Claims shall be paid in accordance with the terms and conditions of the Incremental Term Loan; provided, however, that the Incremental Term Loan shall be amended, with the consent of the Incremental Term Loan Lenders, to remove
the requirement of any future prepayment premium under the Incremental Term Loan for a period of 18 months after the Effective Date.
  

Allowed in the aggregate principal amount of at least $99 million plus accrued interest, fees and expenses.

 
 Impaired - Entitled to Vote

		
	OpCo Note Claims:	  	 On the Effective Date, all of the OpCo Notes shall be cancelled and, in full and final satisfaction of the Allowed OpCo Note Claims, each
OpCo Noteholder shall receive its pro rata share of (i) 96.75%, on a fully diluted basis, of the New HoldCo Common Shares, which shares shall be subject to dilution for the Management Incentive Plan (defined below) and the New Warrants (defined
below) and (ii) the OpCo Litigation Proceeds (defined below).
  
 Allowed in the
aggregate principal amount of at least $650 million plus accrued interest, fees and expenses.
  

Impaired - Entitled to Vote

		
	General Unsecured Claims:	  	Each holder of an Allowed General Unsecured Claim shall receive, in full and final satisfaction of such Allowed General Unsecured Claim, payment in full in cash in the ordinary course of business, as and when due and payable, or
such other treatment as may be required to allow such Allowed General Unsecured Claim to “ride through” the Chapter 11 Cases.

  
 6 

			
		  	Unimpaired - Deemed to Accept
		
	Existing OpCo Equity Interests:	  	On the Effective Date, the Existing OpCo Equity Interests held by HoldCo shall remain outstanding and shall be held by Reorganized HoldCo.
		
	Term Loan Guaranty Claims:	  	 The legal, equitable and contractual rights of the holders of Allowed Term Loan Guaranty Claims are unaltered by the Plan. On or as soon
as practicable after the Effective Date, the Allowed Term Loan Guaranty Claims shall be reinstated pursuant to section 1124 of the Bankruptcy Code on the terms set forth in the Term Loan.

 
 Allowed in the aggregate principal amount of at least $393 million plus accrued
interest, fees and expenses.
  
 Unimpaired - Deemed to Accept

		
	Incremental Term Loan Guaranty Claims:	  	 Each holder of an Allowed Incremental Term Loan Guaranty Claim shall be entitled to receive on account of its Allowed Incremental Term
Loan Guaranty Claim against HoldCo, its pro rata share, on a fully diluted basis, of the HoldCo Creditor New Common Share Pool, which shares shall be subject to dilution for the Management Incentive Plan (defined below) and the New Warrants (defined
below); provided, however that the Incremental Term Loan Lenders have agreed to waive the right to receive such distribution (the “Incremental Term Loan Guaranty Waiver”), but, for the avoidance of
doubt, such waiver shall not affect the status and validity of the guaranties (by HoldCo and the other Debtors) arising under or related to the Incremental Term Loan Guaranty or any liens arising under or related to the Incremental Term Loan, which
guaranties and liens shall remain in place in accordance with their original terms and conditions.
  

Holders of Incremental Term Loan Guaranty Claims shall on account of their Allowed Incremental Term Loan Guaranty Claims against Great Plains, Nomac, PTL, PTL
Prop, SSE Leasing and LandCo receive the treatment set forth for Allowed Incremental Term Loan Claims.
  

Allowed in the aggregate principal amount of at least $99 million plus accrued interest, fees and expenses.

 
 Impaired - Entitled to Vote

		
	OpCo Note Guaranty Claims:	  	Each holder of OpCo Note Guaranty Claims shall be entitled receive on account of its Allowed OpCo Note Guaranty Claims against HoldCo its pro rata share of (i) on a fully diluted based after giving effect to the Incremental
Term Loan Guaranty

  
 7 

			
		
		  	 Waiver, the HoldCo Creditor New Common Share Pool (which shares shall be subject to dilution for the Management Incentive Plan (defined
below) and the New Warrants (defined below)); provided, however, that if holders of at least two-thirds in amount and one-half in number of the Allowed HoldCo Note Claims that timely vote on the Plan vote in favor of the
Plan, the OpCo Noteholders agree to waive the right to receive such distribution (the “OpCo Note Guaranty Waiver”); and (ii) the HoldCo Litigation Proceeds (defined below).

 
 Holders of OpCo Note Guaranty Claims shall on account of their Allowed OpCo Note Guaranty
Claims against Nomac, PTL, Great Plains, PTL Prop, LandCo and SSE Leasing receive the treatment set forth for Allowed OpCo Note Claims.
  

Allowed in the aggregate principal amount of at least $650 million plus accrued interest, fees and expenses.

 
 Impaired - Entitled to Vote

		
	HoldCo Note Claims:	  	 On the Effective Date, all of the HoldCo Notes shall be cancelled.

 
 If holders of at least two-thirds in amount and one-half in number of the Allowed HoldCo
Note Claims that timely vote on the Plan vote in favor of the Plan, each HoldCo Noteholder shall receive on account of its Allowed HoldCo Note Claims its pro rata share of (i) the HoldCo Creditor New Common Share Pool (after giving effect to
the Incremental Term Loan Guaranty Waiver and the OpCo Note Guaranty Waiver) (which shares shall be subject to dilution for the Management Incentive Plan (defined below) and/or the New Warrants (defined below)) (ii) warrants to purchase 15% of the
New HoldCo Common Shares, with a strike price at a total equity value of $524 million upon and after the consummation of the Restructuring, which warrants shall be exerciseable at any time from the Effective Date until the five (5) year anniversary
thereof (the “New A Warrants”) and (ii) the HoldCo Litigation Proceeds (defined below).
  

If holders of at least two-thirds in amount and one-half in number of the Allowed HoldCo Note Claims that vote on the Plan do not vote in favor of the Plan (or
no HoldCo Noteholders vote at all), each HoldCo Noteholder shall receive on account of its Allowed HoldCo Note Claims its pro rata share of (i) the HoldCo Creditor New Common Share Pool (after giving effect to the Incremental Term Loan Guaranty
Waiver), which shares shall be subject to dilution for the Management Incentive Plan (defined below) and (ii) the HoldCo Litigation Proceeds (defined below).
  

Allowed in the aggregate principal amount of at least $450 million plus accrued interest, fees and expenses.

  
 8 

							
		  	Impaired - Entitled to Vote
		
	Intercompany Claims and Intercompany Interests:	  	 All Intercompany Claims and Intercompany Interests shall be reinstated.

 
 Unimpaired - Deemed to Accept

		
	Existing HoldCo Equity Interests:	  	 All Existing HoldCo Equity Interests shall be extinguished as of the Effective Date.

 
 Only if holders of at least two-thirds in amount and one-half in number of each of the
Allowed Incremental Term Loan Claims, the Allowed OpCo Note Claims, the Allowed Incremental Term Loan Guaranty Claims, the Allowed OpCo Note Guaranty Claims and the Allowed HoldCo Note Claims that vote on the Plan vote in favor of the Plan, each
holder of Existing HoldCo Equity Interests shall receive its pro rata share of (i) warrants to purchase 10% of the New Common Shares with a strike price at a total equity value of $1.788 billion, which warrants shall be exercisable at any time from
the Effective Date until the five (5) year anniversary thereof (the “New B Warrants”) and (ii) warrants to purchase 10% of the New Common Shares with a strike price at a total equity value of $2.5 billion, which warrants
shall be exercisable at any time from the Effective Date until the seven (7) year anniversary thereof (the “New C Warrants” and, together with the New A Warrants and the New B Warrants, the “New
Warrants”); otherwise, holders of Existing HoldCo Equity Interests shall receive no distribution under the Plan on account of such interests.
  

Impaired - Deemed to Reject

		
	Summary of Distribution of New HoldCo Common Shares:	  	 Subject to dilution for the Management Incentive Plan (defined below) and the New Warrants, pursuant to the terms and conditions
described above, the New HoldCo Common Shares shall be distributed as follows:
  
 If the
class of HoldCo Noteholders accepts the Plan:

  

					
		
	OpCo Note Claims:	  	 	96.75%	  
	OpCo Note Guaranty Claims:	  	 	0.00%	  
	HoldCo Note Claims:	  	 	3.25%	  
		  	  
	  
	 
		  	 	100.00%	  
	
	If the class of HoldCo Noteholders does not accept the Plan:	  
		
	OpCo Note Claims:	  	 	96.75%	  
	OpCo Note Guaranty Claims:	  	 	1.92%	  
	HoldCo Note Claims:	  	 	1.33%	  
		  	  
	  
	 
		  	 	100.00%	  

  
 9 

			
	Corporate Governance	  	
		
	Corporate Organizational Documents:	  	TBD, but to be acceptable to the Requisite Supermajority Consenting Creditors, in consultation with the Debtors.
		
	Board of Directors of Reorganized HoldCo:	  	TBD, but to be acceptable to the Requisite Supermajority Consenting Creditors, in consultation with the Debtors.
		
	General Provisions	  	
		
	Vesting:	  	Upon consummation of the Restructuring, all of the assets of the Debtors shall be owned by the reorganized Debtors.
		
	Management Incentive Plan:	  	A management incentive plan (the “Management Incentive Plan”) to be implemented after the Effective Date by the board of directors of Reorganized HoldCo will provide some combination of cash, options, and/or
other equity-based compensation to the management of Reorganized HoldCo in an amount to be set forth in the Plan, which amount shall not exceed 10% of the New Common Shares, and which shall dilute all of the equity otherwise contemplated to be
issued by this Term Sheet including, for the avoidance of doubt, the New Warrants.
		
	Tax Issues:	  	The Debtors shall seek to implement the Restructuring in a tax efficient manner. Reorganized HoldCo shall have the authority to control any federal or state tax returns filed by the Debtors.
		
	Reincorporation:	  	Reorganized HoldCo shall be reincorporated in Delaware.
		
	Release and Related Provisions	  	
		
	Exculpations:	  	The Plan shall include standard and customary exculpation provisions that provide for the Debtors, the Restructuring Support Parties, and each of their respective current officers and directors, professionals, advisors, accountants,
attorneys, investment bankers, consultants, employees, agents and other representatives (each solely in its capacity as such), shall be exculpated from liability for their actions in connection with or arising out of the Chapter 11 Cases or the
Plan, with customary carve-outs for gross negligence and willful misconduct, in each of the foregoing cases, to the extent permitted by law.

  
 10 

			
		
	Releases:	  	The Plan shall include standard and customary mutual releases and third party releases, including without limitation, releases of current officers and directors, from holders of claims or interests to the extent permitted by
law.
		
	Litigation Trust:	  	 The Plan shall provide for the establishment of a litigation trust (the “Litigation Trust”) to pursue certain claims
and causes of action to be assigned and transferred to the Litigation Trust by the Debtors on the Effective Date for the benefit of the Litigation Trust Beneficiaries (defined below).

 
 The holders of the OpCo Note Guaranty Claims and the holders of the HoldCo Note Claims
shall be deemed the sole beneficiaries (the “HoldCo Litigation Trust Beneficiaries”) of any claims or causes of action assigned and transferred to the Litigation Trust by HoldCo. Subject to the terms and conditions of the
Litigation Trust Agreement (defined below), the HoldCo Litigation Trust Beneficiaries shall be entitled to receive their pro rata share of any proceeds of any claims or causes of action assigned and transferred to the Litigation Trust by HoldCo (the
“HoldCo Litigation Proceeds”).
  
 The holders of the OpCo Note
Claims shall be deemed the sole beneficiaries (the “OpCo Litigation Trust Beneficiaries” and, together with the HoldCo Litigation Trust Beneficiaries, the “Litigation Trust Beneficiaries”) of any
claims or causes of action assigned and transferred to the Litigation Trust by any Debtor other than HoldCo. Subject to the terms and conditions of the Litigation Trust Agreement (defined below), the OpCo Litigation Trust Beneficiaries shall be
entitled to receive their pro rata share of any proceeds of any claims or causes of action assigned and transferred to the Litigation Trust by any Debtor other than HoldCo (the “OpCo Litigation Proceeds”).

 
 The Litigation Trust shall be governed by an agreement (the “Litigation Trust
Agreement”), which will govern the management and administration of the Litigation Trust and the respective rights, powers and obligations of the Litigation Trust Beneficiaries. The Litigation Trust Agreement will be binding on all
Litigation Trust Beneficiaries who shall be deemed to have executed the Litigation Trust Agreement as of the Effective Date. The Litigation Trust Agreement shall be in form and substance reasonably acceptable to the Requisite Consenting
Creditors.

  
 11 

			
		
	Current Director and Officer Indemnification:	  	 Any obligations of the Debtors pursuant to their organizational documents to indemnify current officers, directors, agents, and/or employees
(i) shall not be discharged or impaired by confirmation of the Plan and (ii) shall be deemed and treated as executory contracts to be assumed by the Debtors under the Plan.

 
 Director and officer insurance will continue in place for the current directors and
officers of all of the Debtors during the Chapter 11 Cases on existing terms. After the Effective Date, the Reorganized Debtors shall not terminate or otherwise reduce the coverage under any director and officer insurance policies (including any
“tail policy”) then in effect. To the extent permitted under applicable law, current directors and officers are to receive first access to available insurance. Current directors and officers shall be indemnified by the Reorganized Debtors
to the extent of such insurance.

		
	Discharge:	  	A full and complete discharge shall be provided in the Plan.
		
	Injunctions:	  	Ordinary and customary injunction provisions shall be included in the Plan.
		
	Conditions to Confirmation and Effectiveness:	  	 The Plan shall be subject to usual and customary conditions to confirmation and effectiveness (as applicable), as well as such other
conditions that are reasonably satisfactory to the Company and the Requisite Consenting Creditors or Requisite Consenting Supermajority Consenting Creditors, as applicable, including the following:

 
 •    The Bankruptcy
Court shall have entered an order in form and substance reasonably acceptable to the Requisite Consenting Creditors and the Debtors approving the Disclosure Statement as containing “adequate information” within the meaning of section 1125
of the Bankruptcy Code;
  

•    The Plan and all documents contained in any Plan supplement, including any exhibits,
schedules, amendments, modifications or supplements thereto, and all other Definitive Documentation shall have been negotiated, executed, delivered and filed with the Bankruptcy Court in substantially final form and in form and substance reasonably
acceptable to the Requisite Consenting Creditors or Requisite Consenting Supermajority Consenting Creditors, as applicable, and the Debtors and otherwise consistent with the terms and conditions described in this Term Sheet or the Restructuring
Support Agreement, as applicable;

  
 12 

			
		
		  	 •    The Restructuring Support Agreement shall have been approved pursuant
to an order of the Bankruptcy Court and shall not have been terminated, and shall be in full force and effect;
  

•    The Bankruptcy Court shall have entered a Confirmation Order in form and substance
reasonably acceptable to the Requisite Consenting Creditors and the Debtors and the Confirmation Order shall be a final order; and
  

•    On or simultaneously with the occurrence of the Effective Date, the Debtors shall have
closed on the Exit Facility, which Exit Facility shall be in form and substance reasonably acceptable to the Debtors and the Requisite Consenting Creditors; provided, however, that the commitment amount, the interest
rate, the maturity date, and all financial covenants in the Exit Facility shall be reasonably acceptable to the Requisite Supermajority Consenting Creditors.

		
	Other Provisions	  	
		
	Other Provisions:	  	The Plan shall contain such other terms and conditions as agreed to by the Debtors and the Requisite Consenting Creditors or Requisite Consenting Supermajority Consenting Creditors, as applicable.
		
	Issuance of New Common Shares; Execution of the Plan Documents:	  	On the Effective Date, the Reorganized Debtors shall issue and execute all securities, notes, instruments, certificates, and other documents required to be issued and executed in accordance with the Plan.
		
	 Executory Contracts and
 Unexpired
Leases:
	  	All executory contracts and unexpired leases not expressly rejected shall be deemed assumed pursuant to the Plan. In consultation with the Requisite Consenting Creditors, the Debtors may reject executory contracts and unexpired
leases, provided, however, that the existing employment arrangements for the Debtors’ management team will be replaced by new employment agreements on terms consistent with their current employment arrangements;
provided that such new employment agreements are reasonably acceptable to the Debtors and the Requisite Consenting Creditors. For the avoidance of doubt, any awards granted under the Management Incentive Plan will be governed by such program and
will not be subject to any provisions of the employment agreements.
		
	Consenting OpCo Noteholders’ Fees and Expenses:	  	The Company shall pay all costs, fees and expenses of Latham & Watkins LLP, advisors to the Consenting Incremental Term Loan Lenders, and Weil, Gotshal & Manges LLP and Moelis & Company, advisors to the Consenting OpCo
Noteholders, under their respective engagement letters or other contractual arrangements.

  
 13 

			
		
	No Registration Under the Securities Act:	  	The offer, issuance and distribution of the New HoldCo Common Shares pursuant to the Plan will be exempt from registration under the Securities Act pursuant to section 1145 of the Bankruptcy Code.
		
	No Admission:	  	Nothing in this Term Sheet is or shall be deemed to be an admission of any kind as to the extent, validity, or priority of any claims held by any Parties hereto.

  
 14 

 Exhibit B to the Restructuring Support Agreement 

Form of Transferee Joinder 

This joinder (this “Joinder”) to the Restructuring Support Agreement (the “Agreement”), dated as of [DATE],
by and among: (i) HoldCo; SSF; OpCo; Great Plains; Seventy Seven Land Company; Nomac; PTL; PTL Prop Solutions, L.L.C.; SSE Leasing, LLC; Keystone Rock & Excavation, L.L.C.; and Western Wisconsin Sand Company, LLC, (ii) the
Consenting Incremental Term Loan Lenders, and (iii) the Consenting OpCo Noteholders, is executed and delivered by [                    ] (the
“Joining Party”) as of [                    ]. Each capitalized term used herein but not otherwise defined shall have the meaning
ascribed to it in the Agreement. 
 1. Agreement to be Bound. The Joining Party hereby agrees to be bound by all of the terms of the
Agreement, a copy of which is attached to this Joinder as Annex 1 (as the same has been or may be hereafter amended, restated, or otherwise modified from time to time in accordance with the provisions thereof). The Joining Party shall
hereafter be deemed to be a Party for all purposes under the Agreement and one or more of the entities comprising the Restructuring Support Parties. 

2. Representations and Warranties. The Joining Party hereby represents and warrants to each other Party to the Agreement that, as of
the date hereof, such Joining Party (a) is the legal or beneficial holder of, and has all necessary authority (including authority to bind any other legal or beneficial holder) with respect to, the ABL Claims, Term Loan Claims, Incremental Term
Loan Claims, Incremental Term Loan Guaranty Claims, OpCo Note Claims, and/or HoldCo Note Claims identified below its name on the signature page hereof, and (b) makes, as of the date hereof, the representations and warranties set forth in
Section 18 of the Agreement to each other Party. 
 3. Governing Law. This Joinder shall be governed by and construed in
accordance with the internal laws of the State of New York, without regard to any conflicts of law provisions which would require the application of the law of any other jurisdiction. 

4. Notice. All notices and other communications given or made pursuant to the Agreement shall be sent to: 

To the Joining Party at: 

[JOINING PARTY] 
 [ADDRESS] 

Attn: 
 Facsimile: [FAX] 

EMAIL: 

 IN WITNESS WHEREOF, the Joining Party has caused this Joinder to be executed as of the date first
written above. 
  

			
	[JOINING PARTY]
		
	Holdings:	 	$             of Debt
		 	Under the ABL Facility
		
	Holdings:	 	$             of Debt
		 	Under the Term Loan
		
	Holdings:	 	$             of Debt
		 	Under the Incremental Term Loan
		
	Holdings:	 	$             of Debt
		 	Under the Incremental Term Loan Guaranty
		
	Holdings:	 	$             of Debt
		 	Under the OpCo Notes Indenture
		
	Holdings:	 	$             of Debt
		 	Under the HoldCo Notes Indenture

 Annex 1 to the Form of Transferee Joinder

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