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Execution Version

FORBEARANCE AGREEMENT 
This FORBEARANCE AGREEMENT, dated as of July 15, 2020 (this “Agreement”), is by and among Valaris plc, a public limited company organized under the laws of England and Wales (the “Company” or the “Issuer”) and the undersigned beneficial holders or investment managers or advisors for such beneficial holders (together with any party that executes a Forbearance Joinder Agreement (the form of which is attached hereto as Exhibit A) after the date hereof, the “Supporting Holders”) of the Issuer’s 4.875% Senior Notes due 2022 (the “2022 Notes”), 4.75% Senior Notes due 2024 (the “2024 Notes”), 7.375% Senior Notes due 2025 (the “2025 Notes”), 5.4% Senior Notes due 2042 (the “2042 Notes”) and 5.85% Senior Notes due 2044 (the “2044 Notes” and together with the 2022 Notes, the 2024 Notes, the 2025 Notes and the 2042 Notes, the “Notes”).
WHEREAS, the Issuer is party to that certain Indenture, dated as of July 21, 2009 (as supplemented by the Ninth Supplemental Indenture, dated as of June 7, 2019, and the Tenth Supplemental Indenture dated as of February 3, 2020, the “Base Indenture”), as supplemented by, with respect to the 2022 Notes, the Fourth Supplemental Indenture, dated as of May 21, 2012 (the Base Indenture, as so supplemented, the “2022 Notes Indenture”), with respect to the 2024 Notes, the Sixth Supplemental Indenture, dated as of January 15, 2014 (the Base Indenture, as so supplemented, the “2024 Notes Indenture”), with respect to the 2025 Notes, the Eighth Supplemental Indenture, dated as of December 19, 2016 (the Base Indenture, as so supplemented, the “2025 Notes Indenture”), with respect to the 2042 Notes, the Fifth Supplemental Indenture, dated as of December 11, 2012 (the Base Indenture, as so supplemented, the “2042 Notes Indenture”) and with respect to the 2044 Notes, the Seventh Supplemental Indenture, dated as of January 15, 2014 (the Base Indenture, as so supplemented, the “2044 Notes Indenture”; the 2022 Notes Indenture, the 2024 Notes Indenture, the 2025 Notes Indenture, the 2042 Notes Indenture and the 2044 Notes Indenture, each an “Indenture” and, collectively, the “Indentures”), under which the respective Notes were issued;
WHEREAS, the current principal amount outstanding of the 2022 Notes is approximately $620.8 million and interest payments on the 2022 Notes are due semiannually, on June 1 and December 1 (or if any day is not a business day, on the next succeeding business day) and an interest payment on the notes of approximately $15.1 million was due on June 1, 2020 (the “2022 Notes Payment”), and the Issuer failed to make such 2022 Notes Payment (the “2022 Notes Default”);
WHEREAS, the current principal amount outstanding of the 2042 Notes is $400.0 million and interest payments on the 2042 Notes are due semiannually, on June 1 and December 1 (or if any day is not a business day, on the next succeeding business day) and an interest payment on the notes of $10.8 million was due on June 1, 2020 (the “2042 Notes Payment”), and the Issuer failed to make such 2042 Notes Payment (the “2042 Notes Default”);
WHEREAS, the current principal amount outstanding of the 2025 Notes is $360.8 million and interest payments on the 2025 Notes are due semiannually, on June 15 and December 15 (or if any day is not a business day, on the next succeeding business day) and an interest payment on the notes of approximately $13.3 million was due on June 15, 2020 (the 

“2025 Notes Payment”), and the Issuer failed to make such 2025 Notes Payment (the “2025 Notes Default”);
WHEREAS, the current principal amount outstanding of the 2024 Notes is $318.6 million and interest payments on the 2024 Notes are due semiannually, on January 15 and July 15 (or if any day is not a business day, on the next succeeding business day) and an interest payment on the notes of approximately $7.6 million is due on July 15, 2020 (the “2024 Notes Payment”), and the Issuer has failed, or will fail, to make such 2024 Notes Payment (the “2024 Notes Default”);
WHEREAS, the current principal amount outstanding of the 2044 Notes is $400.0 million and interest payments on the 2044 Notes are due semiannually, on January 15 and July 15 (or if any day is not a business day, on the next succeeding business day) and an interest payment on the notes of approximately $11.7 million is due on July 15, 2020 (the “2044 Notes Payment”), and the Issuer has failed, or will fail, to make such 2044 Notes Payment (the “2044 Notes Default”);
WHEREAS, the current principal amount outstanding of the 8.000% Senior Notes due 2024 is $292.3 million and interest payments are due semiannually, on January 31 and July 31 (or if any day is not a business day, on the next succeeding business day) and an interest payment on the notes is due on July 31, 2020 (the “8.000% 2024 Notes Payment”), and the Issuer has failed, or will fail, to make such 8.000% 2024 Notes Payment (the “8.00% 2024 Notes Default”);
WHEREAS, the current principal amount outstanding of the 3.000% Exchangeable Notes due 2024 is $849.5 million and interest payments are due semiannually, on January 31 and July 31 (or if any day is not a business day, on the next succeeding business day) and an interest payment on the notes is due on July 31, 2020 (the “3.000% Exchangeable Notes Payment”), and the Issuer has failed, or will fail, to make such 3.000% Exchangeable Notes Payment (the “3.000% Exchangeable Notes Default”);
WHEREAS, the current principal amount outstanding of the 7.750% Senior Notes due 2026 is $1,000 million and interest payments are due semiannually, on February 1 and August 1 (or if any day is not a business day, on the next succeeding business day) and an interest payment on the Notes is due on August 1, 2020 (the “2026 Notes Payment”), and the Issuer has failed, or will fail, to make such 2026 Notes Payment (the “2026 Notes Default” and together with the 2022 Notes Default, the 2024 Notes Default, the 2025 Notes Default, the 2042 Notes Default, the 2044 Notes Default, the 8.00% 2024 Notes Default and the 3.000% Exchangeable Notes Default the “Specified Defaults”);
WHEREAS, pursuant to the applicable indenture, a default for 30 days in the payment when due of interest on the notes will mature into an Event of Default under the applicable indentures, and therefore the Specified Defaults matured or will mature into Events of Default on July 2, 2020, July 16, 2020, August 15, 2020, August 30, 2020 or September 2, 2020, as applicable (the “Resulting Events of Default”); 
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WHEREAS, pursuant to Section 3.02 of each supplemental Indenture, a default under any mortgage, indenture or instrument under which there may be issued or by which there may be secured or evidenced any Indebtedness (as defined by the Indentures) of the Company or any of its Significant Subsidiaries (as defined by the Indentures), if (a) that default (x) is caused by a failure to pay principal of or premium, if any, or interest on such Indebtedness prior to the expiration of the grace period provided in such Indebtedness on the date of such default (a “Payment Default”), or (y) results in the acceleration of such Indebtedness prior to its express maturity, and (b) in each case described in clauses (x) or (y) above, the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $35.0 million or more shall constitute an Event of Default (a “Resulting Cross-Default” and together with the Resulting Events of Default, the “Specified Events of Default”); and
WHEREAS, upon the terms and conditions contained herein, during the Forbearance Period the Supporting Holders are prepared to (i) forbear from exercising, and directing the applicable trustee or otherwise taking any action to cause any other Holders to exercise, their rights and remedies in respect of the indentures and the notes with respect to the Specified Defaults and the Specified Events of Default and (ii) in the event that the applicable trustee or any Holder or group of Holders declares the notes to be due and payable immediately (an “Acceleration”), to deliver written notice to the applicable trustee to rescind and annul such Acceleration and its consequences and take all other action in their power to cause such Acceleration to be rescinded and annulled.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section I.FORBEARANCE
Section 1.01     Forbearance.  During the Forbearance Period, each Supporting Holder (severally and not jointly) hereby agrees (i) to forbear from exercising any of their rights and remedies, including with respect to an acceleration, under the Indentures or applicable law with respect to the Specified Defaults and the Specified Events of Defaults and (ii) in the event that the applicable trustee or any Holder or Group of Holders takes any action which results in an Acceleration during the Forbearance Period (as defined below), to deliver written notice to the applicable trustee to rescind such Acceleration and its consequences and take all other action in their power to cause such Acceleration to be rescinded and annulled.  During the Forbearance Period, each Supporting Holder (severally and not jointly) agrees that it (individually or collectively) will not deliver any notice or instruction to the applicable trustee directing the applicable trustee to exercise during the Forbearance Period any of the rights and remedies under the Indentures or applicable law with respect to the Specified Defaults and the Specified Events of Default.
Section 1.02  Limitation on Transfer of Notes.  During the Forbearance Period, each of the Supporting Holders hereby agrees not to sell, assign, pledge, lend, hypothecate, transfer or otherwise dispose of (each, a “Transfer”) any ownership (including beneficial ownership) of Notes (or any rights in respect thereof, including but not limited to the right to vote) held by such 
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Supporting Holder as of the date hereof except to a party who (i) is already a Supporting Holder party to this Agreement or (ii) prior to such Transfer, agrees in writing to be bound by all of the terms of this Agreement (including with respect to any and all claims it already may hold against the Issuer prior to such Transfer) by executing a Forbearance Joinder Agreement substantially in the form of Exhibit A hereto, and delivering an executed copy thereof, within two (2) business days of closing of such Transfer, to counsel to the Issuer and counsel to the Supporting Holders, Kramer Levin Naftalis & Frankel LLP (“Kramer Levin” at tmayer@kramerlevin.com and szide@kramerlevin.com).  Any Transfer made in violation of this Section 1.02 shall be void ab initio, and the Issuer shall have the right to enforce the voiding of any such Transfer.

         Section 1.03  Forbearance Period. . The forbearance shall commence on the Forbearance Effective Date (as defined below) and continue until the earlier of (a) 11:59 p.m. ET on August 3, 2020, and (b) the date on which any Event of Termination (as defined below) shall have occurred (the earlier of (a) and (b), the “Termination Date” and the period commencing on the Forbearance Effective Date and ending on the Termination Date, the “Forbearance Period”).  From and after the Termination Date, the forbearance shall immediately and automatically terminate and have no further force or effect, and each of the Supporting Holders shall be released from any and all obligations and agreements under this Agreement and shall be entitled to exercise any of the rights and remedies as if this Agreement had never existed, and all of the rights and remedies under the indentures and the notes and in law and in equity shall be available without restriction or modification, as if this forbearance had not occurred.
         Section 1.04   Effect of Forbearance.  No Supporting Holder has waived (regardless of any delay in exercising such rights and remedies) any default or Event of Default that may be continuing on the date hereof or any default or Event of Default that may occur after the date hereof (whether the same or similar to the Specified Defaults or the Specified Events of Default or otherwise), and no Supporting Holder has agreed to forbear with respect to any of its rights or remedies concerning any default or Event of Default (other than, during the Forbearance Period, the Specified Defaults and the Specified Events of Default solely to the extent expressly set forth herein) that may have occurred or be continuing as of the date hereof, or that may occur after the date hereof.  Except as expressly set forth herein, each Supporting Holder reserves all of its rights, powers, and remedies under the Indentures, the Notes and applicable law, including, for the avoidance of doubt, any claims asserted in UMB Bank, N.A. v. Gibbins, et al., Case No. 2020-18184 (Tex. Dist. Ct. Harris Cty.).  Except as expressly set forth herein, the execution, delivery and effectiveness of this Agreement shall not directly or indirectly constitute a course of dealing or other basis for altering the Indentures, the Notes, or any other contract, agreement or instrument.  The Supporting Holders’ agreement to forbear from exercising certain of their rights and remedies with respect to the Specified Defaults and the Specified Events of Default during the Forbearance Period does not in any manner whatsoever limit any Supporting Holder’s right to insist upon strict compliance with the Indentures and the Notes.
Section II.EVENTS OF TERMINATION
         Section 2.01   Events of Termination.  . The Forbearance Period shall automatically terminate if any of the following events shall occur (each, an “Event of Termination”):
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(a)    other than with respect to the Specified Defaults and the Specified Events of Default, there occurs an Event of Default or any other Default under the indentures or the notes that is not cured within any applicable grace period; 
(b)    a case under title 11 of the United States Code or any similar reorganization, liquidation, insolvency, or receivership proceeding under applicable law is commenced by or against the Issuer or a subsidiary of the Issuer;
(c)    the obligations of the Company under the Credit Agreement (as defined in the Credit Agreement Waiver (as defined below)) are accelerated; 
(d)    the termination or invalidity of the Credit Agreement Waiver, the Credit Agreement Waiver otherwise ceasing to be in full force and effect, or the Credit Agreement Waiver being amended, supplemented or otherwise modified in each case without the consent of the Supporting Holders; or
(e)    the failure of the Issuer to timely comply with any term, condition or covenant set forth in this Agreement.
Section III.REPRESENTATIONS AND WARRANTIES AND AGREEMENTS
Section 3.01   Representations and Warranties of the Issuer.  In consideration of the foregoing agreements, the Issuer hereby represents and warrants to each Supporting Holder as follows:
(a)    Each of this Agreement, the indentures and the notes constitutes a valid and legally binding agreement, enforceable against the Issuer in accordance with its terms.
(b)    The Issuer is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has all requisite power and authority to own and operate its properties, to carry on its business as now conducted and to enter into and, as applicable, perform its obligations hereunder and under the indentures and the notes.
(c)    Each of this Agreement, the indentures and the notes has been duly and validly authorized by the Issuer and has been duly executed and delivered by the Issuer.
(d)    No consent or authorization of, filing with, notice to or other act by or in respect of, any governmental or regulatory authority or any other person is required in connection with the Issuer’s entry into, and performance of, this Agreement, the indentures and the notes, except for consents, authorizations, filings and notices which have been obtained or made and are in full force and effect or which are immaterial in nature; and the entry into and performance of this Agreement, the indentures and the notes by the Issuer does and will not conflict with, or result in the default under, any material agreement or document of the Issuer, its constituent documents or any applicable law, regulation or court order, consent or ruling.
(e)    As of the date hereof, except for the Specified Defaults and the Specified Events of Default, no default or Event of Default has occurred or is continuing under this Agreement, the Indentures or the Notes.
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(f)    All of the recitals to this Agreement are true and correct.
(g)    The Company has obtained an executed extension through August 3, 2020 of the Second Amended and Restated Waiver to Fourth Amended and Restated Credit Agreement dated as of July 15, 2020 (the “Credit Agreement Waiver”) on terms acceptable to the Supporting Holders.
Section 3.02  Representations and Warranties of the Supporting Holders.  In consideration of the foregoing agreements, each Supporting Holder severally but not jointly hereby represents and warrants to the Issuer as follows:
(a)    This Agreement constitutes a valid and legally binding agreement, enforceable against such party in accordance with its terms.
(b)    As of the date hereof, it beneficially holds, or advises or manages for a beneficial holder, the principal amount of Notes1 set forth below such Supporting Holder’s signature hereto and to that extent it advises or acts as a manager for any beneficial holder, it has the authority to enter into this Agreement on behalf of such beneficial holder and that this Agreement is a valid and legally binding agreement, enforceable against that holder and such party.
Section 3.03  The parties to this Agreement acknowledge that (a) nothing in this Agreement, including the presentation of drafts from one party to another, constitutes the making of an offer to sell or the solicitation of an offer to buy securities or loans of any kind or the solicitation of a consent or waiver of any rights under the Indentures and (b) the entry into this Agreement shall not constitute, directly or indirectly, a waiver, an amendment, an incurrence, a refinancing, an extension or a modification in any way of any debt or a recapitalization or restructuring in any way of the obligations of the Issuer.
Section 3.04 The Supporting Holders have not made any assurances concerning (a) the manner in which or whether any Event of Default may be resolved or (b) any additional forbearance or any waiver, restructuring or other accommodations.
Section IV.CONDITIONS TO EFFECTIVENESS
This Agreement shall become effective at the time (the “Forbearance Effective Date”) that all of the following conditions precedent have been met (or waived):
Section 4.01  Execution of this Agreement.  The parties to this Agreement shall have received counterparts of this Agreement duly executed by (i) the Issuer and (ii) the beneficial holders, or investment managers or advisors for such beneficial holders, of at least (a) 40%  of the outstanding principal amount of the 2022 Notes, (b) 50%  of the outstanding principal amount of the 2024 Notes, (c) 50%  of the outstanding principal amount of the 2025 Notes, (d) 50%  of the outstanding principal amount of the 2042 Notes, and (e) 50%  of the outstanding principal amount of the 2044 Notes.

1 The Company shall not make such holdings public and will cause such holdings to be redacted to the extent this Agreement is publicly filed or otherwise made publicly available.
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Section 4.02  Representations and Warranties.  The representations and warranties contained herein shall be true and correct in all respects, and no default or Event of Default (other than the Specified Default) shall exist on the date hereof or on the Forbearance Effective Date.
Section 4.03 Credit Agreement Waiver. The Company has obtained an executed extension through August 3, 2020 of the Credit Agreement Waiver on terms acceptable to the Supporting Holders.
Section V.MISCELLANEOUS
Section 5.01  Counterparts
. This Agreement may be executed and delivered in any number of counterparts with the same effect as if the signatures on each counterpart were upon the same instrument.  Any counterpart delivered by facsimile or by other electronic method of transmission shall be deemed an original signature thereto.
Section 5.02  Interpretive Matters
(a)    Unless the context of this Agreement clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, and the term “including” is not limiting.  The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement.  Section, subsection and clause references herein are to this Agreement unless otherwise specified.
(b)    The term “person” as used in this Agreement shall be broadly interpreted to include, without limitation, any individual, corporation, company, partnership or other entity.
(c)    Capitalized terms used but not defined in this Agreement have the meanings given to them in the Indentures. 
  Section 5.03  Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, not including the conflict of law rules and principles thereof.  
   Section 5.04  Successors and Assigns. This Agreement shall be binding upon the Issuer, the Supporting Holders and their respective successors and assigns, and shall inure to the benefit of each such person and their permitted successors and assigns.
  Section 5.05  Additional Parties. Without in any way limiting the provisions hereof, additional holders or beneficial owners of Notes may elect to become parties to this Agreement by executing and delivering to counsel to the Issuer and Kramer Levin a Forbearance Joinder Agreement substantially in the form of Exhibit A hereto.  Such additional holder or beneficial owner of Notes shall become a Supporting Holder under this Agreement in accordance with the terms of this Agreement.
  Section 5.06  Headings. Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.
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      Section 5.07 Integration. This Agreement contains the entire understanding of the parties hereto with regard to the subject matter contained herein.  This Agreement supersedes all prior or contemporaneous negotiations, promises, covenants, agreements and representations of every nature whatsoever with respect to the matters referred to in this Agreement, all of which have become merged and finally integrated into this Agreement.  Each of the parties hereto understands that in the event of any subsequent litigation, controversy or dispute concerning any of the terms, conditions or provisions of this Agreement, no party shall be entitled to offer or introduce into evidence any oral promises or oral agreements between the parties relating to the subject matter of this Agreement not included or referred to herein and not reflected by a writing included or referred to herein.
     Section 5.08  Jury Trial Waiver. The Issuer and the Supporting Holders, by acceptance of this Agreement, mutually hereby knowingly, voluntarily and intentionally waive the right to a trial by jury in respect of any litigation based herein, arising out of, under or in connection with this Agreement and the Indentures or any other documents contemplated to be executed in connection herewith, or any course of conduct, course of dealings, statements (whether verbal or written) or actions of any party, including, without limitation, any course of conduct, course of dealings, statements or actions of any Supporting Holder relating to the administration of the Notes or enforcement of the Indentures arising out of tort, strict liability, contract or any other law, and agree that no party will seek to consolidate any such action with any other action in which a jury trial cannot be or has not been waived.
     Section 5.09  Email . Unless the context of this Agreement clearly requires otherwise, any notice or other communication required by this Agreement, regardless of whether the applicable subsection of this Agreement contemplates email delivery of such notice or communication, may be done via email.
    Section 5.10  Amendment. This Agreement may only be amended or modified in writing (including email by counsel) by the Issuer and each Supporting Holder.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.
Valaris plc

By: /s/ Darin Gibbins    
Name: Darin Gibbins
Title:   An Authorized Signatory

[Signature Page to Forbearance Agreement]

Exhibit A 
FORM OF FORBEARANCE JOINDER AGREEMENT
[●], 2020
Valaris plc
110 Cannon Street
London, EC4N 6EU, United Kingdom
Attention: General Counsel

RE:    Forbearance Agreement 
Ladies and Gentlemen:
Reference is made to the Forbearance Agreement dated as of July [●], 2020 entered into between the Issuer and the Supporting Holders party thereto (such Forbearance Agreement, as in effect on the date hereof and as it may hereafter be amended, supplemented or otherwise modified from time to time, together with this Forbearance Joinder Agreement, being the “Forbearance Agreement”).  Any capitalized terms not defined in this Forbearance Joinder Agreement have the meanings given to them in the Forbearance Agreement.
SECTION I. Joining Obligations Under the Forbearance Agreement. The undersigned (the “Joining Noteholder”) hereby agrees, as of the date first above written, to join and to be bound as a Supporting Holder by all of the terms and conditions of the Forbearance Agreement, to the same extent as each of the other Supporting Holders thereunder.  The undersigned further agrees, as of the date first above written, that each reference in the Forbearance Agreement to a “Supporting Holder” shall also mean and be a reference to the undersigned, including the making of each applicable representation and warranty set forth in Section 3 of the Forbearance Agreement.
SECTION II. Execution and Delivery. Delivery of an executed counterpart of a signature page to this Forbearance Joinder Agreement by telecopy or in .PDF or similar format by email shall be effective as delivery of an original executed counterpart of this Forbearance Joinder Agreement.  For the avoidance of doubt, the Issuer does not need to separately execute this Forbearance Joinder Agreement but is nevertheless bound by the terms of the Forbearance Agreement with respect to the Joining Noteholder as if such Joining Noteholder were a party to the Forbearance Agreement.
SECTION III. Governing Law; Waiver of Jury Trial, Etc. The parties hereto hereby agree that Sections 6.03 and 6.08 of the Forbearance Agreement shall apply to this Forbearance Joinder Agreement.
[Signature Page Follows]

A-1

Very truly yours, 
[JOINING HOLDER]
By:        
                                                                       Name: 
                                                                       Title:
Holder’s principal amount of: 
2022 Notes: $___________
2024 Notes: $___________
2025 Notes: $___________
2042 Notes: $___________
2044 Notes: $___________

A-2Document

Execution Version

SECOND AMENDED AND RESTATED WAIVER TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT
This SECOND AMENDED AND RESTATED WAIVER TO FOURTH AMENDED AND RESTATED CREDIT AGREEMENT (this “Second A&R Waiver”), is dated as of July 15, 2020, by and among Valaris plc, an English public limited company (the “Parent”), Pride International LLC, a Delaware limited liability company and indirect wholly-owned Subsidiary of the Parent (“Pride” and together with the Parent, the “Borrowers”), the Guarantors, the Banks and Issuing Banks listed on the signature pages hereto (the “Required Banks”) (which in each case herein, constitute the “Majority Banks” under the Credit Agreement (as defined below)) and Citibank, N.A., as administrative agent (the “Administrative Agent”).
PRELIMINARY STATEMENTS:
WHEREAS, the Borrowers, the Banks, the Administrative Agent and the Issuing Banks are parties to that certain Fourth Amended and Restated Credit Agreement dated as of May 7, 2013 (as amended by the First Amendment dated as of September 30, 2014, the Second Amendment dated as of March 9, 2015, the Third Amendment dated as of July 1, 2016, the Extension Agreement dated as of October 4, 2016, the Fourth Amendment dated as of December 15, 2016, the Commitment Agreement and Fifth Amendment dated as of October 3, 2017 and effective as of October 6, 2017, and the Commitment Increase Agreement and Sixth Amendment to Fourth Amended and Restated Credit Agreement and as the same may be further amended, restated, increased and extended, the “Credit Agreement”).
WHEREAS, the Borrowers, the Administrative Agent and the Majority Banks entered into that certain Waiver to Fourth Amended and Restated Credit Agreement dated as of June 1, 2020 (the “Initial Waiver Date”), pursuant to which the Majority Banks party thereto waived certain provisions of the Credit Agreement on the terms and conditions set forth therein (the “Initial Waiver”), which was subsequently amended and restated pursuant to that certain Amended and Restated Waiver to Fourth Amended and Restated Credit Agreement dated as of June 30, 2020, pursuant to which the Majority Banks party thereto waived certain provisions of the Credit Agreement on the terms and conditions set forth therein (the “A&R Waiver”).
WHEREAS, the parties hereto wish to amend and restate the A&R Waiver on the terms and conditions set forth herein.
WHEREAS, the (a) Parent is the “Issuer” under the (i) 4.875% Senior Notes due 2022 (the “2022 Notes”), (ii) 5.40% Senior Notes due 2042 (the “2042 Notes”, and together with the 2022 Notes, collectively the “June 1 Interest Rowan Notes”), (iii) 7.375% Senior Notes due 2025 (the “2025 Notes” or the “June 15 Interest Rowan Notes”), (iv) 4.75% Senior Notes due 2024 (the “2024 Notes”), (v) 5.85% Senior Notes due 2044 (the “2044 Notes”, and together with the 2024 Notes, collectively the “July 15 Interest Rowan Notes”; and together with the June 1 Interest Rowan Notes and the June 15 Interest Rowan Notes, collectively, the “Rowan Notes”), (vi) 7.75% Senior Notes due 2026 (the “2026 Notes” or the “August 1 Interest Valaris Notes”) and (vii) 8.0% Senior Notes due 2024 (the “8.0% 2024 Notes”) and (b) Jersey FinCo is the Parent’s Subsidiary and the “Issuer” under the 3.0% Exchangeable Senior Notes due 2024 (the “3.0% 2024 Notes”, and together with the 8.0% 2024 Notes, collectively the “July 31 Interest Notes”).

WHEREAS, the Borrowers have advised the Required Banks that the Parent and/or one or more of its Subsidiaries, as applicable, (i) failed to make all or any part of its required interest payments due on (a) June 1, 2020, with respect to the June 1 Interest Rowan Notes (the “Missed June 1 Payments”), (b) June 15, 2020, with respect to the June 15 Interest Rowan Notes (the “Missed June 15 Payments”), (ii) have failed or may fail to make all or any part of its required interest payments due on July 15, 2020, with respect to the July 15 Interest Rowan Notes (the “Missed July 15 Payments”), (iii) have failed or may fail to make all or any part of its required interest payments due on July 31, 2020, with respect to the July 31 Interest Notes (the “Missed July 31 Payments”), and (iv) have failed or may fail to make all or any part of its required interest payments due on August 1, 2020, with respect to the August 1 Interest Valaris Notes (the “Missed August 1 Payments”, and, together with the Missed June 1 Payments, the Missed June 15 Payments, the Missed July 15 Payments and the Missed July 31 Payments, collectively, the “Missed Payments”).
WHEREAS, the respective indentures for the June 1 Interest Rowan Notes and the June 15 Interest Notes contain a 30 day grace period for the payment of interest when due under such notes, which with respect to the Missed June 1 Payments expired on July 2, 2020 and which with respect to the June 15 Payments will expire on July 16, 2020 (the “Grace Period Expiration Date”).
WHEREAS, the Parent did not make the Missed June 1 Payments prior to the Grace Period Expiration Date, which failure resulted in an event of default under each of the June 1 Interest Rowan Notes, June 15 Interest Rowan Notes, the 2024 Notes and the 2044 Notes (collectively, the “First Rowan Notes Cross Default”).  
WHEREAS, the Parent received a written forbearance from holders of the Rowan Notes with respect to certain of the holders’ exercise of remedies relating to the Missed June 1 Payments, Missed June 15 Payments and the First Rowan Notes Cross Default, pursuant to that certain Forbearance Agreement dated as of June 30, 2020, among the Parent and the holders party thereto (the “Prior Forbearance Agreement”).
WHEREAS, the Parent has informed the Required Banks that, subject to receipt of the Forbearance Agreement (as defined below), it does not intend on making the Missed June 15 Payments prior to the Grace Period Expiration Date, which failure will result in an event of default under the Rowan Notes (collectively, the “Second Rowan Notes Cross Default” and together, with the First Rowan Notes Cross Default, collectively the “Rowan Notes Cross Defaults”).
WHEREAS, the Parent has informed the Required Banks that it is seeking a written forbearance from holders of the Rowan Notes with respect to the exercise of remedies relating to the Missed Payments and the Rowan Notes Cross Defaults.
WHEREAS, the Parent has informed the Required Banks that the Parent’s Subsidiary, Alpha Archer Company, a corporation organized and existing under the laws of the Cayman Islands (“Alpha Archer Co.”), may not make a required payment of a holding fee payable under that certain Contract for the Construction and Sale of Drillship, dated as of June 24, 2013, between Alpha Archer Co. and Daewoo Shipbuilding & Marine Engineering Co., Ltd., a corporation organized and existing under the laws of the Republic of Korea, as supplemented through the date hereof (the “Missed DS14 Payment”). 
WHEREAS, pursuant to the Credit Agreement, each of (i) the failure of the Parent to make the Missed June 1 Payments, (ii) the Rowan Notes Cross Defaults, (iii) the failure of the Parent to make the Missed June 15 Payments, (iv) the failure of Parent to make the Missed July 15 Payments, (v) the failure 
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of Jersey FinCo or the Parent, as applicable, to make the Missed July 31 Payments, and (vi) the failure of the Parent to make the Missed August 1 Payments, results (or will result) in the existence of a Default under the Credit Agreement and, after giving effect to all applicable grace periods afforded under the respective Rowan Notes, results (or will result) in an Event of Default pursuant to Section 7.01(e) of the Credit Agreement (for the avoidance of doubt, both under Section 7.01(e)(i) on account of such Missed Payments and under Section 7.01(e)(ii) on account of the Rowan Notes Cross Defaults) (the “Specified Notes Defaults”).
WHEREAS, the Borrowers have requested that the Required Banks waive (a) the Specified Notes Defaults and, if applicable, any Default or Event of Default resulting from the Missed DS14 Payment; (b) any misrepresentation that might arise under Section 4.11 of the Credit Agreement solely as a result of the Specified Notes Defaults and, if applicable, any Default or Event of Default resulting from the Missed DS14 Payment; and (c) any requirement to provide notice of the occurrences described in clauses (a) and (b) (clauses (a), (b) and (c), together, the “Specified Defaults”) and the Administrative Agent and the Required Banks have agreed to do so subject to the terms and conditions of this Second A&R Waiver.
NOW, THEREFORE, in consideration of the mutual covenants herein contained and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.Defined Terms.  Unless otherwise specifically defined herein, each term used herein (including in the recitals above) that is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement.
Section 2.Waiver.  
Effective as of the Second A&R Waiver Effective Date (as defined below), subject to the terms and conditions of this Second A&R Waiver and in reliance upon the representations and warranties of the Loan Parties set forth in Section 4 below, the Required Banks hereby waive the Specified Defaults, with effect from the Initial Waiver Date until the earliest of (a) 11:59 p.m. ET on August 3, 2020, (b) the termination or invalidity of the Forbearance Agreement, the Forbearance Agreement otherwise ceasing to be in full force and effect, or the Forbearance Agreement being amended, supplemented or otherwise modified in each case without the consent of the Majority Banks, (c) the acceleration by the holders of any of the Rowan Notes in accordance with the terms thereof, and (d) the date on which the aggregate amount of Advances outstanding under the Credit Agreement exceed $630,000,000. This is a limited, one-time waiver and, except as expressly set forth herein, shall not be deemed to: (x) constitute a waiver of any other Default, Event of Default or any other breach of the Credit Agreement or any of the other Loan Documents, whether now existing or hereafter arising, (y) constitute a waiver of any right or remedy of any of the Administrative Agent, Banks or Issuing Banks under the Loan Documents which does not arise as a result of the Specified Defaults (all such rights and remedies being expressly reserved by the Administrative Agent, Banks and Issuing Banks) or (z) establish a custom or course of dealing or conduct between the Administrative Agent, Banks and Issuing Banks, on the one hand, and the Borrowers, the Guarantors or any other Loan Party on the other hand.  The foregoing waiver shall not be deemed to constitute a consent of any other act, omission or any breach of the Credit Agreement or any of the other Loan Documents.
Section 3.Reaffirmation of Guaranty.  Each Guarantor hereby ratifies, confirms, acknowledges and agrees that its Obligations under the Guaranty to which it is a party are in full force and effect and that such Guarantor continues to unconditionally and irrevocably guarantee the full and 
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punctual payment, when due, whether at stated maturity or earlier by acceleration or otherwise, all of the Obligations in accordance with the terms of such Guaranty and its execution and delivery of this Second A&R Waiver does not indicate or establish an approval or consent requirement by such Guarantor under such Guaranty in connection with the execution and delivery of amendments, consents or waivers to the Credit Agreement, the Rowan Notes or any of the other Loan Documents.
Section 4.Representations True; No Default. Each of the Loan Parties represents that:
(a)this Second A&R Waiver has been duly authorized, executed and delivered on its behalf, and the Credit Agreement and the other Loan Documents to which it is a party, constitute the legal, valid and binding obligations of such Loan Party, enforceable against such Loan Party in accordance with their terms, except as such enforceability may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally and by general principles of equity;
(b)after giving effect to this Second A&R Waiver, the representations and warranties of such Loan Party contained in Article IV of the Credit Agreement and in the other Loan Documents to which it is a party are true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof (other than (i) those representations and warranties that expressly relate to a specific earlier date, which representations and warranties were true and correct in all material respects as of such earlier date and (ii) those representations and warranties that are by their terms subject to a materiality qualifier, which representations and warranties are true and correct in all respects); and
(c)after giving effect to this Second A&R Waiver, no Default or Event of Default under the Credit Agreement has occurred and is continuing.
Section 5.Effectiveness.  This Second A&R Waiver shall become effective as of the first date (the “Second A&R Waiver Effective Date”) on which each of the conditions precedent set forth in this Section 5 is satisfied : 
(a)the Administrative Agent (or its counsel) shall have received counterparts of this Second A&R Waiver duly and validly executed and delivered by duly authorized officers of:
(i)each Loan Party;
(ii)the Administrative Agent; and
(iii)the Required Banks;
(b)after giving effect to this Second A&R Waiver, the representations and warranties of such Loan Party contained in Article IV of the Credit Agreement and in the other Loan Documents to which it is a party shall be true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof (other than (i) those representations and warranties that expressly relate to a specific earlier date, which representations and warranties shall be true and correct in all material respects as of such earlier date and (ii) those representations and warranties that are by their terms subject to a materiality qualifier, which representations and warranties shall be true and correct in all respects);
(c)after giving effect to this Second A&R Waiver, no Event of Default under the Credit Agreement shall have occurred and be continuing;
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(d)the Borrowers shall have paid all reasonable and documented fees and out-of-pocket expenses of counsel and advisors for the Administrative Agent which are payable pursuant to Section 9.04 of the Credit Agreement, to the extent invoiced at least one Business Day prior to the Second A&R Waiver Effective Date; and
(e)a forbearance or other agreement in form and substance satisfactory to the Administrative Agent (the “Forbearance Agreement”) shall, prior to or contemporaneously with the Second A&R Waiver Effective Date, have been executed and delivered to the Borrowers by holders of (i) greater than 40% of the aggregate outstanding obligations under the 2022 Notes and (ii) greater than 50% of the aggregate outstanding obligations under each of the other Rowan Notes, which Forbearance Agreement shall be effective in accordance with its terms.
Section 6.Miscellaneous Provisions.
(a)From and after the execution, delivery, and effectiveness of this Second A&R Waiver as set forth in Section 5 above, the Credit Agreement shall continue in full force and effect.  Each Loan Party hereby agrees and acknowledges that the Administrative Agent, the Issuing Banks, and the Banks require and will require strict performance by such Loan Party of all of its respective obligations, agreements and covenants contained in the Credit Agreement, and the other Loan Documents to which it is a party (including any action or circumstance which is prohibited or limited during the existence of a Default or Event of Default), and no inaction or action by the Administrative Agent, any Issuing Bank, or any Bank regarding any Default or Event of Default is intended to be or shall be a waiver thereof (other than as set forth herein).  Each Loan Party hereby also agrees and acknowledges that no course of dealing and no delay in exercising any right, power, or remedy conferred to the Administrative Agent, any Issuing Bank, or any Bank in the Credit Agreement or in any other Loan Documents or now or hereafter existing at law, in equity, by statute, or otherwise shall operate as a waiver of (other than as set forth herein) or otherwise prejudice any such right, power, or remedy.
(b)The Administrative Agent, the Issuing Banks, and the Banks hereby expressly reserve all of their rights, remedies, and claims under the Loan Documents.  Nothing in this Second A&R Waiver shall constitute a waiver (other than as set forth herein) or relinquishment of (i) any Default or Event of Default under any of the Loan Documents, (ii) any of the agreements, terms or conditions contained in any of the Loan Documents, (iii) any rights or remedies of the Administrative Agent, any Issuing Bank, or any Bank with respect to the Loan Documents, or (iv) the rights of the Administrative Agent, any Issuing Bank, or any Bank to collect the full amounts owing to them under the Loan Documents.
(c)The Credit Agreement and this Second A&R Waiver shall be read and construed as one and the same instrument; provided that no provision of this Second A&R Waiver may be waived or modified without the consent of all the parties hereto.
(d)Any reference in any of the Loan Documents to the Credit Agreement shall be a reference to the Credit Agreement as modified by this Second A&R Waiver.
(e)This Second A&R Waiver is a Loan Document for purposes of the provisions of the other Loan Documents. Without limiting the foregoing, any breach of the representations, warranties, and covenants under this Second A&R Waiver may be a Default or an Event of Default under the Loan Documents.
(f)This Second A&R Waiver shall be construed in accordance with and governed by the laws of the State of New York.
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(g)This Second A&R Waiver may be signed in any number of counterparts and by different parties in separate counterparts and may be in original or facsimile form, each of which shall be deemed an original but all of which together constitute one and the same instrument.  The words “executed,” “execution,” “signed,” “signature” and words of like import in this Second A&R Waiver shall be deemed to include electronic signatures or the keeping of electronic records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
(h)The headings herein shall be accorded no significant in interpreting this Second A&R Waiver.
Section 7.Binding Effect.  This Second A&R Waiver shall be binding upon and inure to the benefit of the Loan Parties, the Banks, the Issuing Banks and the Administrative Agent and their respective successors and assigns, except that the Loan Parties shall not have the right to assign their rights hereunder or any interest herein.
[Signature Pages Follow.]

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IN WITNESS WHEREOF, the parties hereto have caused this Second A&R Waiver to be duly executed by their respective officers thereunto duly authorized, as of the date first above written.
BORROWERS:

VALARIS PLC

By:    /s/ Darin Gibbins    
                                                                       Name:  Darin Gibbins
                                                                      Title:    An Authorized Signatory

PRIDE INTERNATIONAL LLC

By:    /s/ Derek Sample    
                                                                     Name:  Derek Sample
                                                                      Title:    An Authorized Signatory

GUARANTORS:

ENSCO JERSEY FINANCE LIMITED

By:    /s/ Jonathan P. Cross    
                                                                     Name:  Jonathan P. Cross
                                                                      Title:    An Authorized Signatory

ALPHA ACHIEVER COMPANY
ENSCO OCEAN 2 COMPANY
ENSCO OFFSHORE INTERNATIONAL COMPANY
ENSCO OVERSEAS LIMITED
ENSCO MANAGEMENT CORP.
PRIDE GLOBAL II LTD.

By:    /s/ Derek A. Sangster    
                                                                     Name:  Derek A. Sangster
                                                                     Title:    An Authorized Signatory

ENSCO GLOBAL GMBH
ENSCO INTERCONTINENTAL GMBH
ENSCO WORLDWIDE GMBH

By:    /s/ Derek A. Sangster    
                                                                     Name:  Derek A. Sangster
                                                                     Title:    An Authorized Signatory

Signature Page to Second Amended and Restated Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

Rowan Offshore Luxembourg S.à r.l.
Rowan rigs S.à r.l.

By:    /s/ Derek A. Sangster    
                                                                     Name:  Derek A. Sangster
                                                                     Title:    An Authorized Signatory

Signature Page to Second Amended and Restated Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

ADMINISTRATIVE AGENT:

CITIBANK, N.A., as Administrative Agent

By:    /s/ Derrick Lenz    
                                                                     Name:  Derrick Lenz
                                                                     Title:    Vice President

REQUIRED BANKS:

CITIBANK, N.A., as a Bank and an Issuing Bank

By:    /s/ Derrick Lenz    
                                                                     Name:  Derrick Lenz
                                                                     Title:    Vice President

 
Signature Page to Second Amended and Restated Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

CITICORP NORTH AMERICA, INC., as a Bank

By:    /s/ Peter Baumann    
                                                                     Name:  Peter Baumann
                                                                     Title:    Vice President

Signature Page to Second Amended and Restated Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

DNB CAPITAL LLC, as a Bank

By:    /s/ Samantha Stone    
                                                                     Name:  Samantha Stone
                                                                     Title:    Vice President

By:    /s/ Mita Zalavadia    
                                                                     Name:  Mita Zalavadia
                                                                     Title:    Assistant Vice President

Signature Page to Second Amended and Restated Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

DNB Bank ASA, NEW YORK Branch as an Issuing Bank

By:    /s/ Samantha Stone    
                                                                     Name:  Samantha Stone
                                                                     Title:    Vice President

By:    /s/ Mita Zalavadia    
                                                                     Name:  Mita Zalavadia
                                                                     Title:    Assistant Vice President

Signature Page to Second Amended and Restated Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

HSBC Bank USA, N.A., as a Bank and an Issuing Bank

By:    /s/ Temesgen Haile    
                                                                     Name:  Temesgen Haile
                                                                     Title:    Vice President

Signature Page to Second Amended and Restated Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

DEUTSCHE BANK, AG NEW YORK BRANCH, 
as a Bank and an Issuing Bank

By:    /s/ Ming K Chu    
                                                                     Name:  Ming K Chu
                                                                     Title:    Director

By:    /s/ Annie Chung    
                                                                     Name:  Annie Chung
                                                                     Title:    Director
 

Signature Page to Second Amended and Restated Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

Bank of America, N.A., as a Bank

By:    /s/ C. Mark Hedrick    
                                                                     Name:  C. Mark Hedrick
                                                                     Title:    Managing Director

Signature Page to Second Amended and Restated Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

                                                                             BNP PARIBAS, as a Bank

By:    /s/ Amy Kirschner    
                                                                     Name:  Amy Kirschner
                                                                     Title:    Managing Director

By:    /s/ Sriram Chandrasekaran    
                                                                     Name:  Sriram Chandrasekaran
                                                                     Title:    Director

Signature Page to Second Amended and Restated Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

BARCLAYS BANK PLC, as a Bank

By:    /s/ Sydney G. Dennis    
                                                                      Name:  Sydney G. Dennis
                                                                     Title:    Director

Signature Page to Second Amended and Restated Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

Morgan Stanley Senior Funding, Inc., as a Bank

By:    /s/ Kevin Newman    
                                                                     Name:  Kevin Newman
                                                                     Title:    Vice President

Signature Page to Second Amended and Restated Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

Goldman Sachs Bank USA, as a Bank

By:    /s/ Jamie Minieri    
                                                                     Name:  Jamie Minieri
                                                                     Title:    Authorized Signatory

Signature Page to Second Amended and Restated Waiver to Fourth Amended and Restated Credit Agreement (Valaris)

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