Document:

exv10w1

Exhibit 10.1

DRILLSHIP MASTER AGREEMENT

THIS DRILLSHIP MASTER AGREEMENT (this “Agreement”) is entered into this 22nd day of November 2010.

BETWEEN

	(1)	 	DRYSHIPS INC., a corporation incorporated and existing under the laws of the Marshall
Islands and maintaining an office at 80 Kifissias Avenue, 151 25 Amaroussion, Greece
(hereinafter referred to as “Dryships”); and
	 
	(2)	 	SAMSUNG HEAVY INDUSTRIES CO., LTD, a corporation incorporated and existing under the laws of
the Republic of Korea and having its registered office at 34th Floor, Samsung Life
Insurance Seocho Tower 1321-15, Seocho-Dong, Seocho-Gu, Seoul, Korea 137-857 (hereinafter
referred to as “Samsung”);

(collectively referred to as “Parties”, and individually as “Party”)

WHEREAS:

Samsung have agreed to grant Dryships the contractual right to enter into up to four contracts
(together the “Contracts”, and each a “Contract”) whereby Samsung shall construct and Dryships (or
its nominated subsidiaries, whose performance shall be guaranteed by Dryships) shall purchase up to
four drillships (together the “Drillships”, each a “Drillship”) on the same contract terms,
conditions and specification as for hull no. 1865 (“HN1865”) which is being constructed by Samsung
and purchased by Drillship Kithira Owners Inc. pursuant to a contract dated 24 January 2008 (as
supplemented, amended, changed or modified as agreed from time to time, including the drilling
package Supply Contract Agreement dated 24 January 2008, Addendum no. 1 dated 21 March 2008,
Supplemental Agreement dated 31 August 2009, Addendum No 2 dated 25 May 2010, and Addendum No 3
dated 9 November 2010) (the “HN1865 Contract”).

NOW THEREFORE, in consideration of the recitals, the mutual covenants hereinafter set forth, and
for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto hereby agree as follows:

	1.	 	Effective Date
	 
	 	 	This Agreement shall become effective upon the date of this Agreement as recorded above (the
“Effective Date”).
	 
	 	 	The Contract(s) for each Drillship shall become effective upon the date that each Contract is
signed, or otherwise in accordance with the terms of each Contract.

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	2.	 	The Construction of the Drillships
	 
	 	 	Samsung shall, on a turn key basis in accordance with and subject to the terms and conditions of
the Contract to be made based on HN1865 Contract with logical amendments and Specifications,
design, construct, launch, equip, test, commission, complete and deliver, and Dryships shall
arrange for a respective number of its subsidiary companies to purchase, the Drillships, each to be
constructed on the same contract terms, conditions and specification as for HN1865 and the HN1865
Contract, and the provisions of the HN1865 Contract shall apply mutatis mutandis (with logical
amendments thereto to incorporate the terms of this Agreement and including all extras/change
orders up to 10 October 2010) to each of the Contracts.
	 
	3.	 	Contract Price
	 
	3.1	 	The price payable by Dryships to Samsung for each Drillship (the “Contract Price”) shall be
US$570,000,000 (Five hundred and seventy million U.S. Dollars). The Contract Price includes
the approved Change Orders of HN1865 up to 10 October 2010.
	 
	3.2	 	For the period from the Effective Date until 15 January 2011, Samsung shall negotiate in good
faith with Dryships the additional cost and other terms (including any adjustment to be made
the Contract Price) for upgrading the Hull and Topside (Drilling Package) so that the
Drillship(s) are capable of drilling in a water depth up to 12,000 feet.
	 
	3.3	 	Until the date(s) upon which Dryships exercise their contractual right in accordance with
Clause 4 hereof, every three months, starting with the date falling three months after the
Effective Date, the Parties shall review the Vessel Element of the Contract Price and shall
mutually agree an increase or decrease of the Contract Price to reflect
(i) movement of the applicable exchange rate, and (ii) changes in steel price and major hull
equipment, since the Effective Date. For the purposes of such review Samsung shall provide all
information and supporting documentation reasonably requested by Dryships to the extent such
information and documentation requested by Dryships are available.
	 
	3.4	 	Until the date(s) upon which Dryships exercise their contractual right in accordance with
Clause 4 hereof, every one month, starting with the date falling one month after the Effective
Date, the Parties shall review the price of the Drilling Equipment Package of the Contract
Price (as defined in the HN1865 Contract and which is, as at the date of this Agreement,
US$232,000,000) and shall mutually agree an increase or decrease of the Contract Price to
reflect any changes in the cost of the Drilling Equipment Package since the Effective Date.
For the purposes of such review Samsung shall provide all information and supporting
documentation reasonably

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	 	 	requested by Dryships, including the quotes provided to Samsung by National Oilwell
Varco (NOV).
	 
	4.	 	The Purchase Right(s)
	 
	 	 	Samsung hereby grants Dryships a contractual right until 22 November 2011 to purchase the
Drillship(s) for the Contract Price (as provided for in Clause 3 above) and for delivery on
the Delivery Date(s) set out in Clause 5 below, subject to the other terms and conditions
herein.
	 
	 	 	Dryships may exercise its right to purchase each Drillship by giving notice in writing to Samsung.
	 
	 	 	Dryships shall not be obliged to proceed to purchase all four Drillships and may purchase one, two,
three or four Drillship(s) in accordance with their requirements. Dryships shall not be
required to exercise its contractual right at the same time, but shall in any event be
required to exercise such right on or before 22 November 2011.
	 
	 	 	Such written notice shall be irrevocable and shall oblige Samsung as sellers and Dryships through
its nominated subsidiary company (whose performance shall be guaranteed by Dryships) as buyers
to enter into a Contract on the same terms as the HN1865 Contract mutatis mutandis, with
logical amendments thereto to incorporate the terms of this Agreement.
	 
	5.	 	Delivery Date(s)
	 
	 	 	The delivery date(s) of each Drillship are set out in the table below and shall depend upon the
date upon which Dryships shall have exercised its right to proceed with each Contract:

	 	 	 	 	 	 	 	 	 
	Option Exercise Date	 	Prior to 22 Feb 2011	 	Prior to 22 May 2011	 	Prior to 22 Aug 2011	 	Prior to 22 Nov 2011
	Vessel

	 	Delivery Date
	 	Delivery Date
	 	Delivery Date
	 	Delivery Date
	1st Drillship

	 	Oct.31 2013
	 	Dec.31 2013
	 	Mar.31 2014
	 	Jun.30 2014
	2nd Drillship

	 	Dec.31 2013
	 	Mar.31 2014
	 	Jun.30 2014
	 	TBA
	3rd Drillship

	 	Mar.31 2014
	 	Jun.30 2014
	 	TBA
	 	TBA
	4th Drillship

	 	Jun.30 2014
	 	TBA
	 	TBA
	 	TBA

	 	 	Where the delivery date(s) are not recorded in the above table, such delivery dates shall be
determined by Samsung at its reasonable discretion declaring the earliest available date(s)
based on their production schedule, always acting in good faith when doing so.

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	6.	 	Payment of the Contract Price
	 
	 	 	Subject to Clause 3 above, Dryships shall pay the Contract Price of US$570,000,000 (Five hundred
and seventy million U.S. Dollars) or any other amount to be adjusted in accordance with Clause
3 as follows:

	 	6.1	 	Dryships shall pay to Samsung the sum of US$24,756,000 (Twenty four million seven hundred and
fifty six thousand U.S. Dollars) as a non-refundable pre payment in respect of each Drillship
on or before 22 November 2010;
	 
	 	6.2	 	Dryships shall pay the sum of US$174,744,000 (One hundred and seventy four million seven
hundred and forty four thousand U.S. Dollars) in respect of each Drillship upon the signing of
each Contract and provision of original of a Refundment Guarantee from a first class reputable
Korean Bank for the above amount;
	 
	 	6.3	 	Dryships shall pay the sum of US$370,500,000 (Three hundred and seventy million five hundred
thousand U.S. Dollars), together with any adjustment(s) to the Contract Price in accordance
with Clause 3 hereof, in respect of each Drillship upon the delivery of each Vessel.

	7.	 	Notices
	 
	 	 	Every notice given under this Agreement shall be in writing and shall be deemed given when
delivered personally, by registered or certified mail or by telefax or e-mail to the address
of the Party receiving such notice stated below. Any notice sent by telefax shall be confirmed
by prepaid first class letter posted as soon as practicable thereafter but the failure of the
addressee to receive such letter shall not prejudice the validity or effect of such telefax
notice.
	 
	 	 	Except as otherwise provided hereunder the addresses of the Parties for the purposes of notices
under this Agreement shall be:
	 
	 	 	Dryships Inc c/o Deverakis Law Offices 

80 Kifissias Avenue, 151 25 Amaroussion, Greece
	 
	 	 	Fax no.: (+30)210 6140267 
 E-mail: lawsgr@hol.gr 
 Att: Mr. Stelios Deverakis
	 
	 	 	Samsung Heavy Industries Co. Ltd

32th Floor, Samsung Life Insurance Seocho Tower 1321-15,

Seocho-Dong, Seocho-Gu, Seoul, Korea, 137-857
	 
	 	 	Fax no: (+82) 2 3458 7369

E-mail: danielcd.cho@samsung.com

Att: Mr. Daniel Cho

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	8.	 	Confidentiality
	 
	 	 	The Parties hereto undertake to keep the existence of this Agreement and the terms hereof
strictly confidential, and shall not disclose same to any third parties without express prior
written consent from the other party unless disclosing party demonstrates that such disclosure
is required to comply with the applicable laws and regulations.
	 
	9.	 	Governing Law and Jurisdiction
	 
	 	 	The Parties hereto agree that the validity and interpretation of this Agreement shall be governed
by and construed in accordance with the laws of England. Any dispute or difference of any kind
whatsoever between the Buyers and the Builder relating to this Agreement or their obligations
hereunder shall be referred to and finally resolved by arbitration in London on the same terms
as the arbitration clause in HN1865 Contract.
	 
	10.	 	Successors and Assigns
	 
	 	 	This Agreement shall enure to the benefit of, and be binding upon, the Parties hereto and their
respective heirs, executors, administrators, successors and assigns. This Agreement shall be
read and construed with all changes of gender and/or number as maybe required by the context.
	 
	11.	 	Entire Agreement
	 
	 	 	This Agreement constitutes the entire agreement and understanding between the parties hereto and
supersedes and merges any and all prior negotiations, representations, undertaking and
agreements on any subject matter of this Agreement. There are no agreements, discussions,
warranties and representations, expressed or implied, between the Parties except those
expressly stated in this Agreement.
	 
	12.	 	Contracts (Rights of Third Parties) Act 1999
	 
	 	 	Nothing in this Agreement shall be construed as conferring a right to a third party to enforce any
provision of this Agreement whether under the Contracts (Rights of Third Parties) Act 1999 or
otherwise.
	 
	13.	 	Signatories
	 
	 	 	The Parties warrant and confirm for their respective parts that the below mentioned signatories
are duly authorised to sign this Agreement on their behalf.

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IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 	 	 	 	 

	 
	For and on behalf of	 	For and on behalf of the Builder
	DRYSHIPS INC	 	SAMSUNG HEAVY INDUSTRIES CO., LTD.
	 
	By: 	 /s/ Pankaj Khanna	 	By: 	 /s/ H. Y. Lee
	 	Pankaj Khanna	 	 	H. Y. Lee
	 	Title: 	 COO	 	 	Title: 	Attorney-In-Fact

6exv10w2

Exhibit 10.2

NOVATION AGREEMENT

This NOVATION AGREEMENT (this “Agreement”) is made on this 30 day of December 2010 by and between

	 	1)	 	SAMSUNG HEAVY INDUSTRIES CO. LTD, a corporation of Korea, having its registered office at
34th floor, Samsung Life Insurance Seocho Tower 1321-15 Seocho-Dong, Seocho-Gu,
Seoul, Korea 137-857 (hereinafter referred to as “Samsung”);
	 
	 	2)	 	DRYSHIPS INC. a corporation of Majuro, Marshall Islands, which maintains a shipping office at
80 Kifissias Avenue GR-151 25 Marousi, Athens, Greece (hereinafter called “the Company”); and
	 
	 	3)	 	OCEAN RIG UDW INC. of Majuro, Marshall Islands, which maintains a shipping office at 80
Kifisias Avenue, GR-15125 Marousi, Athens, Greece (hereinafter “the New Issuer”)

WHEREAS:

	 	(A)	 	by a Drillship Master Agreement entered on 22nd November 2010 between the Company
and Samsung (“Drillship Master Agreement”), among others it was agreed for the Company to have
a contractual right until 22 November 2011 to order to Samsung the construction of four (4)
drillships at the price and specifications set out therein and for the other terms and
conditions set out therein.
	 
	 	(B)	 	the Company has paid an aggregate amount of USD 99,024,000 to Samsung as a non-refundable
prepayment in respect of the four option drillships to be ordered pursuant to above Drillship
Master Agreement;
	 
	 	(C)	 	the Company wishes to grant the benefit of above Drillship Master Agreement to the New Issuer
in consideration of the aggregate amount of USD 99,024,000, the non-refundable prepayments in
respect of the four option drillships and to assign all its rights and benefits and transfer
and novate all its obligations and responsibilities under the Drillship Master Agreement to
the New Issuer. The New Issuer wishes to accept such assignment, transfer and novation of
rights, benefits, obligations and responsibilities pursuant to the Drillship Master Agreement
subject to the following terms and subject to the conditions of this Agreement.

IT IS HEREBY AGREED THAT:-

	1.	 	The Company as of the date hereof hereby assigns all its rights and benefits and transfers
and novates all its obligations and responsibilities pursuant to the Drillship Master
Agreement to the New Issuer in consideration of the aggregate amount of USD 99,024,000, the
non-refundable prepayments in respect of the four option drillships, and the New Issuer hereby
agrees to and

P/4 Optional Drillships/ Novation Agreement

 

 

	 	 	accepts such assignment of rights and benefits and assumption of all obligations and
responsibilities pursuant to the Drillship Master Agreement and the Company shall be released from
any of its obligations and liabilities under the Drillship Master Agreement.
	 
	2.	 	In consideration of this Agreement and the acceptance of the New Issuer to assume and perform
all obligations and responsibilities under the Drillship Master Agreement, Samsung hereby consents
to the provisions of Clause 1 above.
	 
	3.	 	The parties hereto agree that as of the date hereof all rights, benefits, responsibilities and
obligations of the Company pursuant to the Drillship Master Agreement are assigned, transferred,
novated to and assumed by the New Issuer and all references in the Drillship Master Agreement to
“DryShips” shall be deemed to refer to the New Issuer.
	 
	4.	 	This Agreement shall be deemed in all respects to take effect from the date hereof. The New
Issuer hereby represents and warrants that (i) it is duly incorporated as a company under the laws
of Marshall Islands and has full power to carry on its business as is now being conducted and to
own its property and other assets; (ii) it has full power and authority to enter into and perform
its obligations under this Agreement and to consummate the transactions contemplated hereby; (iii)
the execution and performance of this Agreement and the consummation of the transactions
contemplated hereby have been duly authorized by all necessary corporate and other actions on the
part of the New Issuer and do not contravene any applicable law, order or regulation, judgment or
permit binding on the New Issuer or any of its assets or its constitutional documents; and (iv)
this Agreement constitutes a legal, valid and binding obligation of the New Issuer.
	 
	5.	 	With effect from the signing of this Agreement, a part pertinent to DryShips under the Article 7
(Notices) of the Drillship Master Agreement shall be amended as follows:
	 
	 	 	To Ocean Rig UDW Inc. c/o DEVERAKIS LAW OFFICE

80 Avenue, GR-15125 Marousi, Athens, Greece

Fax No.: (+30) 2106140267

E-mail: lawsgr@hol.gr

Attn.: Mr. Stelios N. Deverakis
	 
	6.	 	All payments made by DryShips to Samsung prior to the date hereof shall be deemed to have been
made by the New Issuer.
	 
	7.	 	This Agreement shall be governed by and construed in accordance with English Law and any dispute
arising out of or in connection with this Agreement shall be referred to arbitration in London,
U.K.
	 
	8.	 	In the event and to the extent that there shall be an inconsistency between the provisions of
this Agreement and the provisions of the Drillship Master Agreement, this Agreement shall prevail.

 

 

For and on behalf of                      Date: 30/12/2010

Samsung

	 	 	 	 	 
	 	By:  	/s/ TONY T. N. KIM
 	 
	 	 	TONY T. N. KIM 	 
	 	 	Title:  	REPRESENTATIVE OF ATHENS OFFICE 	 
	 

For and on behalf of                      Date: 30/12/2010

the Company

	 	 	 	 	 
	 	By:  	/s/ Ziad Nakhleh
 	 
	 	 	Ziad Nakhleh 	 
	 	 	Title:  	Attorney-in-fact 	 
	 

For and on behalf of                      Date: 30/12/2010

the New Issuer

	 	 	 	 	 
	 	By:  	/s/ Iraklis Sbarounis
 	 
	 	 	Iraklis Sbarounis 	 
	 	 	Title:  	Attorney-in-fact 	 

P/4 Optional Drillships/ Novation Agreement

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