Document:

Exhibit 10.8

     

    EXECUTION VERSION

     

    AMENDMENT AGREEMENT

      to the U.K. Implementation Agreement dated 6 July 2017

     

    THIS AMENDMENT AGREEMENT (the “Amendment
        Agreement”) is made on 18 July 2017 between the following parties:

     

    
      	(1)	
              PARAGON OFFSHORE PLC (IN ADMINISTRATION), a
                company incorporated in England and Wales with registered number 08814042, whose registered office is at c/o Deloitte LLP, Four Brindleyplace, Birmingham, B1 2HZ, United Kingdom (“Paragon Parent”);

            

    

     

    
      	(2)	
              Paragon Offshore Limited, a company incorporated
                in Cayman with registered number MC-323580, whose registered office is at c/o Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands (“Reorganized Paragon”); and

            

    

     

    (together, the “Parties”),

     

    
      	(3)	
              NEVILLE KAHN and DAVID SODEN in their capacity as
                joint administrators of Paragon Parent, each of Deloitte LLP, Athene Place, 66 Shoe Lane, London EC4A 3BQ (the “Administrators”) (each
                acting as agent of Paragon Parent and without personal liability).

            

    

     

    RECITALS

     

    
      	(A)	
              The Parties and certain Subsidiaries of Paragon Parent have entered into the U.K. Implementation Agreement dated 6 July 2017 (as amended, modified and
                supplemented from time to time, the “U.K. Implementation Agreement”).

            

    

     

    
      	(B)	
              The Parties have agreed to make amendments to certain provisions of the U.K. Implementation Agreement relating, among other things, to the direct or
                indirect transfer of Prospector Offshore Drilling S. à r. l. and its direct and indirect subsidiaries to Reorganized Paragon (the “Prospector
                  Transfer”).

            

    

     

    
      	(C)	
              This Amendment Agreement has been entered into in accordance with Clause 18.1 (General) of the U.K. Implementation Agreement to make certain amendments to the U.K. Implementation Agreement which are required to reflect, among other things, the agreed position between the Parties
                regarding the Prospector Transfer.

            

    

     

    IT IS AGREED as follows:

     

    
      		1	
              INTERPRETATION

            

    

     

    
      	1.1	
              Capitalised terms used but not defined in this Amendment Agreement have the meanings given to them in the U.K. Implementation Agreement.

            

    

     

    
      	1.2	
              The Schedule is an integral part of this Amendment Agreement and references to this Amendment Agreement includes references and defined terms in the
                Schedule to it.

            

    

     

    
      	

            	2	
              AMENDMENT OF THE U.K. IMPLEMENTATION AGREEMENT

            

    

     

    
      	2.1	
              The U.K. Implementation Agreement is hereby amended, with effect from the date of this Amendment Agreement, in the manner of the insertions and
                deletions shown in the redline document in the Schedule.

            

    

     

    
      
        

      

    

    
    

    

    
      	2.2	
              With effect from the date of this Amendment Agreement, any reference in any document, including the Plan or any Plan Document, to “the U.K. Implementation Agreement” or any provision thereof, shall be construed as a reference to the U.K. Implementation Agreement as
                amended by this Amendment Agreement.

            

    

     

    
      	2.3	
              Each Party shall, at its own expense, do all such acts and things necessary or desirable to give effect to the amendments effected pursuant to this
                Amendment Agreement.

            

    

     

    3              MISCELLANEOUS

     

    3.1          Incorporation by Reference

     

    The Parties agree that clauses 1.2 (Interpretation), 11 (Limitations), 13 (Confidentiality and announcements), 14 (Notices), 16 (Administrators’ Liability), 17 (Governing Law) and 18 (General) of the U.K. Implementation Agreement are incorporated herein, with references to the “Agreement” being understood to refer to this “Amendment Agreement” and references to “Party” or
      “Parties” being understood to refer to the “Parties”.

     

    
      	3.2	
              Third Party Rights

            

    

     

    
      	

            	(a)	
              Unless otherwise expressly provided to the contrary in this Agreement and subject to Clause 3.2(b), a person who is not a party has no right to enforce
                or to enjoy the benefit of any term of this Agreement under the Contracts (Rights of Third Parties) Act 1999 as amended, modified, re-enacted or replaced or under any similar laws of any other jurisdiction in force from time to time.

            

    

     

    
      	

            	(b)	
              The Parties intend that each of the other parties to the U.K. Implementation Agreement and each of the third parties identified in clause 16.4 (Administrators’ Liability) of the U.K. Implementation Agreement shall be entitled to rely on and enforce all exclusions and other rights and
                provisions in their favour to the same extent as the Parties under this Amendment Agreement and hereby opt into the Contracts (Rights of Third Parties) Act 1999 for that purpose.

            

    

     

    IN WITNESS whereof this Amendment
      Agreement has been duly executed on the date first above written.

    
      2

      
        

      

    

    
    SCHEDULE

     

    REDLINE OF THE UK IMPLEMENTATION AGREEMENT

    
      3

      
        

      

    

    

    

    	
            Weil, Gotshal & Manges (London) LLP

              110 FETTER LANE

              LONDON EC4A 1AY

              +44 20 7903 1000 mAIN tEL

              +44 20 7903 0990 mAIN fAX

              WEIL.COM

          	 

     

    EXECUTION VERSION

     

    6 July 2017

     

    U.K. IMPLEMENTATION AGREEMENT 

      pursuant to the Fifth Joint Chapter 11 Plan of Paragon Offshore plc and its Affiliated Debtors as amended pursuant to an Amendment Agreement dated 18 July 2017

     

    between

     

    PARAGON OFFSHORE PLC (in administration)

     

    and

     

    CERTAIN TRANSFERRED SUBSIDIARIES

     

    and

     

    CERTAIN LIQUIDATING SUBSIDIARIES

     

    and

     

    PARAGON OFFSHORE LIMITED

     

    and

     

    NEVILLE KAHN AND DAVID SODEN

      as joint administrators of Paragon Offshore plc (in administration)

    
      
        

      

    

    
    TABLE OF CONTENTS

    

    

    	 	 	
            PAGE

          
	 	 	 
	
            1

          	
            INTERPRETATION

          	
            1

          
	
            2

          	
            PARTIES’ RIGHTS AND OBLIGATIONS

          	
            6

          
	
            3

          	
            UNDERTAKINGS

          	
            6

          
	
            4

          	
            U.K. ADMINISTRATION RESERVE

          	
            7

          
	
            5

          	
            GROUP RELIEF

          	
            9

          
	
            6

          	
            SATISFACTION OF CONDITIONS PRECEDENT

          	
            10

          
	
            7

          	
            NOTICE OF SATISFACTION OF CONDITIONS PRECEDENT

          	
            12

          
	
            8

          	
            AUTHORITY TO DATE AND RELEASE IMPLEMENTATION DOCUMENTS

          	
            12

          
	
            9

          	
            EFFECTIVE DATE

          	
            12

          
	
            10

          	
            POST EFFECTIVE DATE

          	
            13

          
	
            11

          	
            LIMITATIONS

          	
            14

          
	
            12

          	
            TERMINATION

          	
            14

          
	
            13

          	
            CONFIDENTIALITY AND ANNOUNCEMENTS

          	
            14

          
	
            14

          	
            NOTICES

          	
            15

          
	
            15

          	
            ENFORCEMENT BY THIRD PARTIES

          	
            16

          
	
            16

          	
            ADMINISTRATORS’ LIABILITY

          	
            16

          
	
            17

          	
            GOVERNING LAW

          	
            17

          
	
            18

          	
            GENERAL

          	
            17

          
	
            SCHEDULE 1 INDICATIVE IMPLEMENTATION DOCUMENTS

          	
            19

          
	
            SCHEDULE 2 LIQUIDATING SUBSIDIARIES

          	
            20

          
	
            SCHEDULE 3 STRUCTURE OF REORGANIZED PARAGON GROUP

          	
            22

          
	
            SCHEDULE 4 STRUCTURE OF PARAGON PARENT AND LIQUIDATING SUBSIDIARIES

          	
            24

          
	
            SCHEDULE 5 FORM OF ACCESSION DEED

          	
            26

          

    
      i

      
        

      

    

    
    

    

    THIS
        AGREEMENT is made 6 July 2017 between the following parties

     

    
      	(1)	
              PARAGON OFFSHORE PLC (IN ADMINISTRATION), a
                company incorporated in England and Wales with registered number 08814042, whose registered office is at c/o Deloitte LLP, Four Brindleyplace, Birmingham, B1 2HZ, United Kingdom (“Paragon Parent”);

            

    

     

    
      	(2)	
              Each entity executing this Agreement as a TRANSFERRED SUBSIDIARY;

            

    

     

    
      	(3)	
              Each entity executing this Agreement as a LIQUIDATING SUBSIDIARY;

            

    

     

    
      	(4)	
              Paragon Offshore Limited, a company incorporated
                in Cayman with registered number MC-323580, whose registered office is at c/o Maples Corporate Services Limited, PO Box 309, Ugland House, Grand Cayman, KY1-1104, Cayman Islands (“Reorganized Paragon”); and

            

    

     

    
      	(5)	
              NEVILLE KAHN and DAVID SODEN in their capacity
                as joint administrators of Paragon Parent, each of Deloitte LLP, Athene Place, 66 Shoe Lane, London EC4A 3BQ (the “Administrators”) (each acting as agent of Paragon Parent and
                without personal liability).

            

    

     

    RECITALS

     

    
      	(A)	
              Paragon Parent and each of the other Debtors are subject to reorganization under chapter 11 of title 11 of the United States Code (the “Chapter 11 Proceeding”). On 7 June 2017, an order confirming the fifth joint chapter 11 plan in relation to the corporate and financial restructuring of Paragon Parent and each of the other Debtors (the “Financial Restructuring”) was entered by the United States Bankruptcy Court in the Chapter 11 Proceeding.

            

    

     

    
      	(B)	
              The Financial Restructuring will be implemented pursuant to the U.K. Sale Transaction in accordance with the terms of the Plan, the Reorganization
                Documents and the Implementation Documents (in each case, as defined below).

            

    

     

    
      	(C)	
              The Administrators were appointed to Paragon Parent on 23 May 2017 pursuant to an order of the Companies Court of the High Court of Justice of England
                and Wales (the “Appointment”) to, among other things, implement the U.K. Sale Transaction.

            

    

     

    
      	(D)	
              The Parties have agreed to enter into this Agreement to set out each of the steps and actions required to effect the Financial Restructuring (including
                the U.K. Sale Transaction), in accordance with the Plan.

            

    

     

    
      	(E)	
              This Agreement is the “U.K. Implementation Agreement”, as defined in the Plan.

            

    

     

    THE PARTIES, in consideration for the mutual undertakings provided by each of the other Parties hereto, AGREE as follows

     

    
      	1	
              INTERPRETATION

            

    

     

    
      	1.1	
              Capitalised terms shall, unless the contrary is indicated, have the meaning given to them in the Plan. In addition, the following expressions have the
                following meanings:

            

    

     

    “Accession Deed” means
      a deed substantially in the form set out in Schedule 5 (Form of Accession Deed).

     

    “Accounting Period” means
      an accounting period within the meaning of Chapter 2 of Corporation Tax Act 2009.

     

    “Administration” means
      the administration of Paragon Parent pursuant to Schedule B1 of the Insolvency Act 1986.

     

    
      1

      
        

      

    

    

    

     

     “Administration
        Account(s)” means one or more accounts, which shall bear interest if available on commercially reasonable terms at the relevant time, in the name of Paragon Parent and controlled solely by the Administrators.

     

    “Administration
        Contingency Account(s)” means one or more accounts, which shall bear interest if available on commercially reasonable terms at the relevant time, in the name of Paragon Parent and controlled solely by the Administrators.

     

    “Agreement” means
      this agreement including any schedules and any attachments hereto.

     

    “Appointment” has
      the meaning given to that term in Recital (C).

     

    “Authorisation”
      means any authorisation, consent, approval, resolution, licence, exemption, filing notification, notarisation or registration.

     

    “Available Losses” means
      the aggregate of the amounts described in section 99 of Corporation Tax Act 2010 that in the relevant Accounting Period and Claim Period are eligible for surrender by Paragon Parent under the provisions of Part 5 of Corporation Tax Act 2010, to the
      extent that the Administrators are satisfied that such amounts are either: (a) not available to; or (b) not likely to be required by, Paragon Parent for its own account or to transfer to any Liquidating Subsidiary to offset or reduce the taxable
      income of Paragon Parent or such Liquidating Subsidiary.

     

    “Business Day”
      means any day (other than a Saturday or Sunday) on which banks are open in London, Houston and Cayman for normal banking business.

     

    “Claim” means any
      claim, in law, in equity or otherwise and whatsoever nature:

     

    
      	

            	(a)	
              including any pending, contingent, threatened or actual claim, action, proceeding, investigation, litigation, demand, compulsory process, other notice
                or damages of any kind which may be alleged, brought or made in any jurisdiction;

            

    

     

    
      	

            	(b)	
              whether voluntary or for cause, of any contractual obligation or for any failure of a person to perform any contractual, legal or regulatory obligation
                or otherwise; and/or

            

    

     

    
      	

            	(c)	
              for, among other things, the enforcement of any right to, or any liability in respect of a right to:

            

    

     

    
      	

            	(i)	
              seek or enforce any judgment;

            

    

     

    
      	

            	(ii)	
              exercise any remedy (for damages or otherwise), indemnity or contribution, whether for losses (including consequential loss, economic loss, loss of
                bargain, loss of value, or other losses), costs and expenses of any nature; and

            

    

     

    
      	

            	(iii)	
              apply any set-off, netting, withholding, combination of accounts or retention of similar rights in respect of any claim or liability whatsoever.

            

    

     

    “Claim Period” means
      the portion of the Accounting Period of Paragon Parent that commences before the date of this Agreement and that ends on the date of the Confirmation Order, or, if later, the time at which the group condition (as such term is utilized within Part 5
      of the Corporation Tax Act 2010) ceases to apply as between Paragon Parent and Reorganized Paragon (or such other subsidiary undertaking of Reorganized Paragon as Reorganized Paragon shall nominate).

     

    “Conditions Precedent” has
      the meaning given to it in Clause 6 (Satisfaction of Conditions Precedent).

    

    

    
      2

      
        

      

    

     

    “Contingency Fund”
      means the amount of Cash to be distributed to the Administration Contingency Account(s) pursuant to Clause 4.2 (U.K. Administration Reserve) in an
      amount to be set out in a side letter between Paragon Parent, Reorganized Paragon and the Administrators.

     

    “Contract Assignment
        Agreement(s)” means the documents, deeds, instruments of transfer, agreements, notices, resolutions, consents and undertakings required to effect the transfer of certain contracts and unexpired leases from Paragon Parent and/or certain other
      of the Liquidating Subsidiaries to Reorganized Paragon and/or the Transferred Subsidiaries, as shall be considered necessary to implement the U.K. Sale Transaction and the Financial Restructuring by, and on terms agreed between, the relevant Parties
      thereto and the Administrators (each acting reasonably).

     

    “Completion Date”
      has the meaning given to it in Clause 6 (Satisfaction of Conditions Precedent).

     

    “Debtors’ Counsel” means Weil, Gotshal & Manges, LLP.

     

    “Excess Cash”
      means, in relation to Paragon Parent and Paragon Offshore Finance Company, such cash or cash equivalents that is held in a bank account in the name and for the benefit of, or otherwise to the order and for the benefit of, such entity, and that
      Paragon Parent (acting reasonably) considers is not required:

     

    
      	

            	(a)	
              in connection with any Plan Distributions;

            

    

     

    
      	

            	(b)	
              in respect of Paragon Offshore Finance Company, in connection with the liquidation and dissolution of that entity; or

            

    

     

    
      	

            	(c)	
              to fund the Operating Fund or the Contingency Fund.

            

    

     

    “Financial Restructuring”
      has the meaning given to that term in Recital (A).

     

    “Group Relief”
      means relief which can be surrendered or claimed pursuant to the provisions of Part 5 of Corporation Tax Act 2010.

     

    “Implementation Documents”
      means, in all material respects:

     

    
      	

            	(a)	
              such of the documents, deeds, instruments of transfer, agreements, notices, resolutions, consents and undertakings listed in Schedule 1 (Indicative Implementation Document Index); and/or

            

    

     

    
      	

            	(b)	
              such other documents, deeds, instruments of transfer agreements, notices, resolutions, consents and undertakings,

            

    

     

    in each case as shall be considered to be necessary to implement the U.K. Sale Transaction and the Financial
      Restructuring by, and on terms agreed between, the relevant Parties thereto and the Administrators (each acting reasonably).

     

    “Intellectual Property
        Rights” means:

     

    
      	

            	(a)	
              rights in and to patents, inventions, trademarks, trade names, domain names, goodwill, get-up, designs, copyright (including copyright in software),
                data-base rights, confidential know-how (including technical knowledge, manufacturing processes, manufacturing methods and manufacturing procedures), trade secrets and any other intellectual property rights, in each case whether registered
                or unregistered and including all applications (and the right to apply) for and renewals or extensions of such rights; and

            

    

    
      3

      
        

      

    

    
      	

            	(b)	
              all similar or equivalent rights or forms of protection which subsist now or in the future in any part of the world.

            

    

     

    “IP Transfer
        Documentation” means each document required to effect the assignment or transfer of any Intellectual Property Rights pursuant to Clause 9.2(a)(iii)(A) (U.K. Sale Transaction), on terms agreed between Reorganized Paragon, Paragon Parent and the Administrators (each acting reasonably).

     

    “Liability” means
      any loss, Claim, judgment and any fee, cost, charge, penalty, interest, disbursement (including any legal fees and disbursements and taxes) of whatsoever nature and whether arising before or after the execution of this Agreement and/or before or
      after the Appointment and due from or incurred by the Administrators, their Staff or Paragon Parent, directly or indirectly, including in connection with:

     

    
      	

            	(i)	
              any invalidity or defect relating to the Appointment;

            

    

     

    
      	

            	(ii)	
              any actions taken by Paragon Parent and/or the Administrators from the date of the appointment of the Administrators up to the date of the U.K. Sale
                Transaction, including actions required in connection with the Reorganization and/or the U.K. Sale Transaction;

            

    

     

    
      	

            	(iii)	
              the implementation of the Plan including the execution and implementation of the Reorganization and/or the U.K. Sale Transaction by the Administrators;
                and

            

    

     

    
      	

            	(iv)	
              the assets and liabilities retained by Paragon Parent (including each of Paragon Parent’s direct and indirect subsidiaries) prior to or following the
                implementation of the Reorganization and/or U.K. Sale Transaction,

            

    

     

    but does not include any liabilities arising as a result of any gross negligence or fraud by the Administrators.

     

    “Liquidating Subsidiaries”
      means each subsidiary listed in Schedule 2 (Liquidating Subsidiaries) and each other Paragon Entity that becomes a Party to this Agreement
      as a Liquidating Subsidiary in accordance with Clause 2.3 (Parties’ Rights and Obligations) below.

     

    “Management Agreement” means
      a management agreement in connection with the Prospector Group to be entered into between Paragon Parent, Reorganized Paragon and the Administrators on or around the Effective Date.

     

    “Offshore Drilling”
      means Prospector Offshore Drilling S.à r.l., a société à responsibilité limitée incorporated in Luxembourg with registered number B153772, whose
      registered office is at 291, route d’Arlon, L1150, Luxembourg.

     

    “Offshore Drilling Shares” means the entire issued share capital of Offshore Drilling from time to time.

     

    “Operating Fund”
      means the amount of Cash to be distributed to the Administration Account(s) pursuant to Clause 4.1 (U.K. Administration Reserve) in an amount to be
      set out in a side letter between the Paragon Parent, Reorganized Paragon and the Administrators.

     

    “Paragon Entity” means
      Paragon Parent and any other entity that is a Subsidiary of Paragon Parent, from time to time.

     

    “Parties” means each the parties to this Agreement from time to time but excluding the Administrators.

     

    “Plan” means the
      Fifth Joint Chapter 11 Plan of Paragon Parent and its Affiliated Debtors, including all appendices, exhibits, schedules and supplements thereto (including any appendices, schedules and supplements to the Plan that are included in the Plan
      Supplement), all as may be modified from time to time in accordance with the Bankruptcy Code and the terms of the Plan.

    
      4

      
        

      

    

    “Prospector Group” means Offshore Drilling and each of its
      Subsidiaries from time to time and “Prospector Group Company” shall mean any one of them.

     

    “Reorganization”
      has the meaning given to that term in Clause 6.1 (Reorganization Steps) below.

     

    “Reorganization Documents”
      means each of the documents that the relevant Parties thereto and the Administrators (each acting reasonably) consider are required to effect the Reorganization Steps.

     

    “Reorganization Steps”
      means each of the steps required to be taken to effect the Reorganization, as set out in the Steps Paper.

     

    “Senior
        Noteholders” means a Senior Noteholder, as defined in the Plan.

     

    “Staff” means each
      of the Administrators and the Administrators’ firm’s officers, directors, employees, agents and representatives.

     

    “Steps Paper” means
      the final form steps paper prepared by Deloitte LLP setting out the steps that certain of the Parties are required to take to implement the Reorganization and the Financial Restructuring and listing each of the Liquidating Subsidiaries and any other
      liquidating Paragon Entities.

     

    “Subsidiary” has
      the meaning given to the term ‘subsidiary undertaking’ pursuant to section 1162 of and schedule 7 to the Companies Act 2006, and includes any undertaking which would be a subsidiary undertaking but for any security subsisting over the shares in that
      undertaking from time to time.

     

    “Tax Return” means
      any return required to be made by Paragon Parent and/or Reorganized Paragon (or any subsidiary undertaking thereof) pursuant to Schedule 18 to the Finance Act 1998.

     

    “Termination Date”
      means the date on which this Agreement is terminated with regard to all of the Parties in accordance with Clause 12 (Termination).

     

    
      	1.2	
              In interpreting this Agreement unless the context otherwise requires:

            

    

     

    
      	

            	(a)	
              the headings to the clauses are for convenience only and shall not affect the construction of anything in this Agreement;

            

    

     

    
      	

            	(b)	
              reference to clauses are to be construed as references to the clauses of, and Schedules to this Agreement;

            

    

     

    
      	

            	(c)	
              references to the singular includes the plural and vice versa and references to any gender includes the other genders;

            

    

     

    
      	

            	(d)	
              a reference to the Administrators shall be construed as being to the Administrators both jointly and severally acting as agents of Paragon Parent
                without personal liability and to any person who from time to time is appointed as an administrator in substitution for any administrator or as an additional administrator in conjunction with the Administrators;

            

    

     

    
      	

            	(e)	
              a reference to “including” means including, without limitation;

            

    

     

    
      5

      
        

      

    

     

    
      	

            	(f)	
              references to a party includes such person’s successors-in-title;

            

    

     

    
      	

            	(g)	
              where reference is made to a statutory provision this includes all prior and subsequent enactments, amendments and modifications relating to that
                provision and any subordinate legislation made under it; and

            

    

     

    
      	

            	(h)	
              where reference is made to any document or instrument this is a reference to that document or instrument as amended, supplemented, novated, extended or
                reinstated from time to time.

            

    

     

    
      	2	
              PARTIES’ RIGHTS AND OBLIGATIONS

            

    

     

    
      	2.1	
              The obligations of each Party under this Agreement are several. Failure by a Party to perform its obligations under this Agreement shall not affect the
                obligations of any other Party under this Agreement. No Party is responsible for the obligations of any other Party under this Agreement.

            

    

     

    
      	2.2	
              The rights of each Party under or in connection with this Agreement are separate and independent rights. Each Party may separately and independently
                enforce its rights under this Agreement.

            

    

     

    
      	2.3	
              Any Paragon Entity may become a Party to this Agreement as a Liquidating Subsidiary or a Transferred Subsidiary by delivering a duly executed Accession
                Deed to Paragon Parent and Reorganized Paragon. Paragon Parent and Reorganized Paragon shall, as soon as reasonably practicable after receipt by it of a duly completed Accession Deed appearing on its face to comply with the terms of this
                Agreement and delivered in accordance with the terms of this Agreement, sign that Accession Deed.

            

    

     

    
      	3	
              UNDERTAKINGS

            

    

     

    Until the Termination Date, and at all time subject to Clause 11 (Limitations):

     

    
      	3.1	
              each Party shall act in good faith and promptly take all actions reasonably necessary to support, facilitate, implement, consummate or otherwise give
                effect to the Conditions Precedent and the Financial Restructuring in accordance with the Plan, this Agreement and the Steps Paper, including:

            

    

     

    
      	

            	(a)	
              in respect of the Reorganization Documents to which it is proposed to be a party, negotiating and agreeing such Reorganization Documents in a form
                consistent in all material respects with the Plan, this Agreement and the Steps Paper, taken as a whole. Each Party acknowledges that Paragon Parent, each Transferred Subsidiary, each other Liquidating Subsidiary and Reorganized Paragon may
                execute all Reorganization Documents and take all steps to implement the Reorganization Steps, provided that such Reorganization Documents shall be consistent in all material respects with the Plan, the Steps Paper and this Agreement taken
                as a whole;

            

    

     

    
      	

            	(b)	
              in respect of the Implementation Documents to which it is proposed to be a party and the subject of which are not in agreed form as of the date of this
                Agreement, negotiating and agreeing such Implementation Documents in a form consistent in all material respects with the Plan and this Agreement. Each such Party acknowledges that the Plan and this Agreement set out the key terms of the
                Financial Restructuring and the relevant Parties may together determine the precise terms of the Implementation Documents, provided that the Implementation Documents shall be consistent in all material respects with the Plan and this
                Agreement taken as a whole;

            

    

     

    
      	

            	(c)	
              executing and delivering any other document and giving any other notice, confirmation, consent, order, instruction or direction, making any
                application, filing, registration or announcement or paying any tax, transfer tax or duty or equivalent amount as may be necessary or desirable to support, facilitate, implement, consummate or otherwise give effect to the Financial
                Restructuring, provided in each case, it is in a form which is in all material respects consistent with the Plan, this Agreement and the Steps Paper (where applicable) taken as a whole; and

            

    

     

    
      6

      
        

      

    

     

    
      		(d)	
              preparing for and filing for any legal process or proceedings and any supporting petitions or applications to any court, to support, facilitate,
                implement consummate or otherwise give effect to the Financial Restructuring;

            

    

     

    
      	3.2	
              each Party shall use all reasonable efforts to obtain, comply with and do all that is necessary to maintain in full force and effect any necessary
                Authorisation required under any applicable law or regulation of a relevant jurisdiction to:

            

    

     

    
      		(a)	
              enable it to perform its obligations under the Reorganization Documents and the Implementation Documents; and

            

    

     

    
      		(b)	
              ensure the legality, validity, enforceability or admissibility in evidence in the relevant jurisdictions of any Reorganization Document or
                Implementation Document to which it is or will be a party,

            

    

     

    
      	3.3	
              each Party shall not:

            

    

     

    
      		(a)	
              take, encourage, assist or support (or procure that any other person takes, encourages, assists or supports) any action which would, or would
                reasonably be expected to, breach or be inconsistent with this Agreement, the Plan, the Steps Paper, any Reorganization Document or Implementation Document; or

            

    

     

    
      		(b)	
              delay, impede or prevent the implementation or consummation of the Financial Restructuring.

            

    

     

    
      	4	
              U.K. ADMINISTRATION RESERVE

            

    

     

    
      	
              4.1

            	
              To the extent not established prior to the date of this Agreement, Paragon Parent shall:

            

    

     

    
      		(a)	
              open the Administration Account(s), which shall initially be funded by the Debtors with the Operating Fund in accordance with the Confirmation Order;
                and

            

    

     

    
      		(b)	
              open the Administration Contingency Account(s), which shall initially be funded by the Debtors with the Contingency Fund in accordance with the
                Confirmation Order,

            

    

     

    in each case to be held (together with any income accretions) on trust (the “Trust”) by Paragon Parent: (i) firstly, for the benefit of Paragon Parent and the Liquidating Subsidiaries in accordance with Clauses 4.2 to 4.4
      below (in priority to Reorganized Paragon’s interest under Clause 4.6 below); and (ii) secondly, in relation to any residual amounts, for the benefit of Reorganized Paragon in accordance with Clause 4.6 below. The Administration Accounts(s) and the
      Administration Contingency Account(s) together constitute the U.K. Administration Reserve as defined in the Plan. Paragon Parent, in its capacity as trustee of the Trust, shall have all powers necessary for the implementation of the Trust and this
      Clause 4 (U.K. Administration Reserve) and, unless otherwise provided by this Clause 4 (U.K. Administration Reserve), may exercise such powers as it thinks fit.

     

    
      	
              4.2

            	
              Paragon Parent may (in its sole discretion) use the Operating Fund and any other amounts in the Administration Account(s), in
                connection with the costs, fees (including but not limited to the reasonable and proper remuneration of the Administrators), expenses and liabilities of:

            

    

     

    
      		(a)	
              the Administration, including implementation of the U.K. Sale Transaction and the Plan;

            

    

     

    
      		(b)	
              the implementation of the Reorganization;

            

    

    

    

    
      7

      
        

      

    

    

    

    
      		(c)	
              managing the winding down of Paragon Parent and the Liquidating Subsidiaries; and

            

    

     

    
      		(d)	
              each other thing that the Administrators in their sole discretion consider appropriate and in accordance with their duties pursuant to the Insolvency
                Act 1986.

            

    

     

    
      	4.3	
              Paragon Parent may (in its sole discretion) use the Contingency Fund and any other amounts in the Administration Contingency Accounts(s) to
                investigate, prepare, pursue, defend, settle, compromise or pay any actual or contingent Liabilities (including to fund the reasonable and proper remuneration of the Administrators and legal fees incurred by the Administrators and/or
                Paragon Parent in connection with any such Liability), whether such Liability relates to the period prior to or following the Appointment.

            

    

     

    
      	4.4	
              On or as soon as reasonably practicable after Paragon Parent determines that it will draw on the Contingency Fund in accordance with Clause 4.3 above
                (and in any event prior to making such drawing) Paragon Parent shall give notice to Reorganized Paragon by sending an email to such email address for Reorganized Paragon as is notified to Paragon Parent from time to time (pursuant to Clause
                14 (Notices) below), which shall specify:

            

    

     

    
      		(a)	
              the nature of the Liability and the amount (or an estimate of the amount) of the Liability in reasonable detail; and

            

    

     

    
      		(b)	
              the reasons that Paragon Parent (acting reasonably) consider that it is necessary to draw on the Contingency Fund in connection with such Liability,

            

    

     

    and upon sending the notice Paragon Parent shall be entitled to draw on the Contingency Fund.

     

    
      	4.5	
              Following the Effective Date, to the extent that any funds are or become available in Paragon Parent’s estate for the purposes outlined in Clauses 4.2
                or 4.3 above in relation to Paragon Parent (and not any other Liquidating Subsidiary), Paragon Parent shall draw on such funds prior to drawing on the Operating Fund or the Contingency Fund for such purpose.

            

    

     

    
      	4.6	
              To the extent that Paragon Parent, in its capacity as trustee of the Trust, determines, in its sole power and discretion, that Clauses 4.2 to 4.4 above
                have been provided for in full, Paragon Parent shall, as soon as reasonably practicable following such determination, distribute the funds not required for the purposes set out in Clauses 4.2 to 4.4 from the Administration Account(s) and/or
                the Administration Contingency Account(s) to Reorganized Paragon, as the residuary beneficiary of the Trust; provided that Paragon Parent shall be deemed to have determined that the funds remaining in the Administration Account(s) and/or
                the Administration Contingency Account(s) are not required for the purposes set out in Clauses 4.2 to 4.4 immediately prior to the date on which any notice is sent in relation to the dissolution of Paragon Parent or, if earlier, 125 years
                from the date of this Agreement (and shall distribute accordingly).

            

    

     

    
      	4.7	
              Reorganized Paragon acknowledges and agrees that: (a) Paragon Parent is both the trustee and a beneficiary of the Trust; and (b) Paragon Parent may
                exercise or concur in exercising any powers and discretions given by this Clause 4 (U.K. Administration Reserve) or by law
                notwithstanding that it has a direct or other interest in the mode or result of any such exercise.

            

    

     

    
      	4.8	
              From and including the Confirmation Date, the Operating Fund and the Administration Accounts(s) shall be subject to the ongoing jurisdiction of the
                courts of England and Wales and shall not be subject to the jurisdiction of the Bankruptcy Court.

            

    

     

    
      	4.9	
              From and including the Effective Date, the Contingency Fund and the Administration Contingency Account(s) shall be subject to the ongoing jurisdiction
                of the courts of England and Wales and shall not be subject to the jurisdiction of the Bankruptcy Court.

            

    

     

    
      8

      
        

      

    

     

    
      	4.10	
              Neither the Operating Fund nor the Contingency Fund may be used for the purposes of:

            

    

     

    
      		(a)	
              making or preparing to make any application under paragraph 75 of Schedule B1 to the Insolvency Act 1986;

            

    

     

    
      		(b)	
              challenging or preparing to challenge the U.K. Sale Transaction or any other action that is contemplated by the Plan; or

            

    

     

    
      	

            	(c)	
              making any distribution from Paragon Parent (whether effected by the Administrators or any liquidators subsequently to Paragon Parent) to creditors or
                shareholders of Paragon Parent pursuant to section 65 of Schedule B1 to the Insolvency Act 1986 or section 107 of the Insolvency Act 1986 (as applicable).

            

    

     

    4.11        To the extent that:

     

    
      		(a)	
              the Operating Fund; and

            

    

     

    
      	

            	(b)	
              any other assets that become available to Paragon Parent from time to time during the course of the Administration for satisfaction of the costs, fees
                (including but not limited to the reasonable and proper remuneration of the Administrators), expenses and liabilities arising in relation to each of the matters referred to in clause 4.2(a) (U.K. Administration Reserve) to clause 4.2(d) (U.K. Administration Reserve) above,

            

    

     

    are insufficient to satisfy such costs, fees, expenses and liabilities at any given time, Reorganized Paragon agrees to
      pay any such amounts incurred by Paragon Parent, provided that prior to incurring such costs, fees, expenses or liabilities, Reorganized Paragon is informed of and consents to the scope of the relevant work or other matter (such consent not to be
      unreasonably withheld, bearing in mind the scope of the tasks envisaged by the Plan and this Agreement).

     

    
      	5	
              GROUP RELIEF

            

    

     

    
      	5.1	
              Subject to the provisions of Clauses 5.2 to 5.7 below:

            

    

     

    
      	

            	(a)	
              Paragon Parent shall, in consideration for:

            

    

     

    
      	

            	(i)	
              the satisfaction or waiver of each of the Conditions Precedent (as set out in Clause 6 (Satisfaction of Conditions Precedent) of this Agreement);

            

    

     

    
      	

            	(ii)	
              the completion of the U.K. Sale Transaction (as set out in Clause 9.2 (U.K. Sale Transaction) of this Agreement and as further set out in the Plan); and

            

    

     

    
      	

            	(iii)	
              the release of certain Allowed Claims and the release and discharge of certain other claims as set out in Clauses 9.2 (U.K. Sale Transaction) and 9.3 (Consideration distributed to holders
                  of other Claims) of this Agreement, and as further set out in the Plan.

            

    

     

    surrender to Reorganized Paragon (or such other subsidiary undertaking of Reorganized Paragon as Reorganized Paragon
      shall nominate) all Available Losses arising during the Claim Period, and for any Accounting Periods ending on or prior to such Claim Period; and

     

    
      	

            	(b)	
              Reorganized Paragon shall procure that Reorganized Paragon (or such other subsidiary undertaking of Reorganized Paragon as Reorganized Paragon shall
                nominate) shall claim all such Available Losses so surrendered.

            

    

     

    Notwithstanding the above, Paragon Parent shall not be required to surrender any Available Losses to the extent that such
      Available Losses are utilized by Paragon Parent, or any subsidiary undertaking thereof, in respect of the Claim Period and/or any Accounting Period ending on or prior to such Claim Period.

    
      9

      
        

      

    

     

    
      	5.2	
              As soon as reasonably practicable after the date of this Agreement, Paragon Parent shall (at the cost of Reorganized Paragon):

            

    

     

    
      	

            	(a)	
              execute any consents necessary to surrender Group Relief pursuant to Clause 5.1 above to Reorganized Paragon (or such other subsidiary undertaking of
                Reorganized Paragon as Reorganized Paragon shall nominate) (the “Consents”);

            

    

     

    
      		(b)	
              amend (if necessary) its Tax Return(s) for the relevant Accounting Period(s); and

            

    

     

    
      		(c)	
              provide a copy of any Consents referred to above to Reorganized Paragon (and/or such other subsidiary undertaking of Reorganized Paragon as Reorganized
                Paragon shall nominate).

            

    

     

    
      	5.3	
              Upon receipt of the Consents, Reorganized Paragon (and/or such other subsidiary undertaking of Reorganized Paragon as Reorganized Paragon shall
                nominate) shall (at the cost of Reorganized Paragon) send to HMRC executed letters of claim, together with copies of the Consents and its own Tax Returns (amended if necessary) in respect of the relevant Accounting Periods as required by
                Schedule 18 to the Finance Act 1998.

            

    

     

    
      	5.4	
              Paragon Parent agrees that any Consent to surrender or surrenders of Available Losses pursuant to this Clause 5 (Group Relief) once made shall not be withdrawn.

            

    

     

    
      	5.5	
              If either Paragon Parent or Reorganized Paragon (or any subsidiary undertaking thereof) becomes aware of a request for further information in
                connection with any Tax Return or amended Tax Return or in connection with any representation or undertaking relevant to a claim for Group Relief, it shall give to the other party written notice of that request. Whichever party last had
                such information, or the party to which such request most directly relates, shall take such steps as are necessary to enable the other to comply with that request. The party complying with the request shall give the other party reasonable
                opportunity to comment on any proposed response and shall inform the other party of its compliance with that request and copy to the other party all relevant correspondence.

            

    

     

    
      	5.6	
              No party shall be required to take any action pursuant to this Clause 5 (Group Relief) (including, without limitation, the adoption of any particular accounting practice, procedure or methodology) if that party reasonably considers such action would be unlawful.

            

    

     

    
      	5.7	
              For the avoidance of doubt, any costs associated with any surrender of Available Losses under this Clause 5 (Group Relief), and the preparation of any forms, documentation or Tax Returns (and any amendments thereto) shall be borne by Reorganized Paragon.

            

    

     

    
      	6	
              SATISFACTION OF CONDITIONS PRECEDENT

            

    

     

    Each of the conditions set out in Clauses 6.1 (Reorganization Steps) to 6.3 (Implementation Documents) below (the “Conditions
        Precedent”) shall be satisfied as a condition to the occurrence of the Effective Date:

     

    
      	6.1	
              Reorganization Steps

            

    

     

    Each of the Reorganization Steps shall be satisfied or waived with the consent of the Parties (such consent not to be
      unreasonably withheld) and shall, among other things:

     

    
      		(a)	
              pay, adjust, continue, settle, reinstate, discharge, eliminate, simplify, rationalize or otherwise manage the intercompany balances as between the
                Parties such that, among other things, following the Effective Date:

            

    

     

    
      		(i)	
              neither Paragon Parent nor any other Liquidating Subsidiary will have any intercompany claim against Reorganized Paragon or any of the Transferred
                Subsidiaries; and

            

    

     

    
      10

      
        

      

    

    

    

    
      	

            	(ii)	
              Reorganized Paragon and/or certain Transferred Subsidiaries will retain certain intercompany claim(s) against Paragon Parent and/or certain Liquidating
                Subsidiaries. Any residual proceeds reasonably available for distribution to creditors of Paragon Parent in the ordinary course of the Administration shall be distributed in accordance with the Insolvency Act 1986 and the Insolvency Rules
                (England and Wales) 2006, including to Reorganized Paragon and/or certain Transferred Subsidiaries (as applicable) in their capacities as creditors respect of such retained intercompany claims(s);

            

    

     

    
      	

            	(b)	
              effect the Corporate Restructuring such that: (I) immediately prior to the Effective Date, each of the Transferred Subsidiaries (other than the
                Prospector Group Companies) shall be a direct or indirect Subsidiary of Reorganized Paragon; and (II) following the Effective Date, upon the transfer of the Offshore Drilling Shares to Reorganized Paragon (or such other person(s) as
                Reorganized Paragon may direct) in accordance with the Management Agreement, each Prospector Group Company shall be a direct or indirect subsidiary of Reorganized Paragon (the “Prospector Transfer”).
                Following completion of the Prospector Transfer, Reorganized Paragon together with its direct and indirect Subsidiaries shall be held substantially in the structure set out in Schedule 3 (Structure of Reorganized Paragon group), and on the Effective Date:

            

    

     

    
      		(i)	
              the New Equity Interests in Reorganized Paragon shall be distributed in accordance with Clause 9 (Effective Date) below; and

            

    

     

    
      	

            	(ii)	
              each of the Liquidating Subsidiaries shall remain as direct or indirect subsidiaries of Paragon Parent substantially in the structure set out in
                Schedule 4 (Structure of Paragon Parent and Liquidating Subsidiaries), to be wound down in accordance with section 5.13 (Dissolution of Liquidating Subsidiaries) of the Plan,

            

    

     

    
      	

            	(c)	
              effect the transfer or distribution of Cash directly or indirectly between the Parties (excluding Reorganized Paragon) pursuant to section 6.2 (Plan Funding) of the Plan, for the relevant Party to make, among other things, the Cash distributions referred to in Clause 9 (Effective Date) below,

            

    

     

    (together, the “Reorganization”).

     

    
      	6.2	
              Plan Conditions Precedent

            

    

     

    Each of the conditions precedent set out in section 9.1 (Conditions Precedent to the Effective Date) of the Plan, save for any condition with respect to the U.K. Sale Transaction, has been satisfied or has been waived in accordance with section 9.2 (Waiver of Conditions Precedent) of the Plan.

     

    
      	6.3	
              Implementation Documents

            

    

     

    Save with the consent of the Parties (such consent not to be unreasonably withheld), each of the Implementation
      Documents:

     

    
      		(a)	
              have been agreed between the Parties (acting reasonably) and the addressees thereto; and

            

    

     

    
      	

            	(b)	
              where applicable, are duly signed but not dated and an electronic copy of such Implementation Documents have been delivered to Debtors’ Counsel
                  in accordance with the authorisations set out in Clause 8 (Authority to Date and Release Implementation Documents), in each case to be held pending release in accordance
                  with Clause 9 (Effective Date) below.

            

    

     

    
      11

      
        

      

    

    

    

    
      	7	
              NOTICE OF SATISFACTION OF CONDITIONS PRECEDENT

            

    

     

    Promptly upon each of the Conditions Precedent being satisfied or waived (as applicable), Debtors’ Counsel will provide
      written notice to each of the Parties and each of the Parties that the Conditions Precedent have been satisfied and such notice will designate the Effective Date.

     

    
      	8	
              AUTHORITY TO DATE AND RELEASE IMPLEMENTATION DOCUMENTS

            

    

     

    Where a signed but undated Implementation Document is provided to the Debtors’ Counsel pursuant to Clause 6.3(b) (Implementation Documents) and such Implementation Document is required to be dated, the Parties (to the extent that they are parties to such
      Implementation Document) hereby authorise Debtors’ Counsel to:

     

    
      	

            	(a)	
              date, complete and release such Implementation Document; and

            

    

     

    
      	

            	(b)	
              serve and accept delivery or service on their behalf of any Implementation Documents (and any other documents, notices or evidence expressly referred
                to in this Agreement) required to be delivered by or to a Party,

            

    

     

    subject to and in accordance with the terms of this Agreement, without being required to obtain any further consents or
      authorisations from any Party or from any other person or entity.

     

    
      	9	
              EFFECTIVE DATE

            

    

     

    9.1          Effective Date

     

    The Parties’ authorize the Debtors’ Counsel to date and release each Implementation Document on the Effective Date in
      accordance with Clause 8 (Authority to date and release Implementation Documents) above and each such Implementation Document shall become
      effective in accordance with its terms.

     

    9.2          U.K. Sale Transaction

     

    Pursuant to the Plan and the Implementation Documents, in consideration for the release of certain Allowed Claims, on or
      around the Effective Date:

     

    
      		(a)	
              Paragon Parent shall:

            

    

     

    
      	

            	(i)	
              comply with section 5.3 (Authorization, Issuance, and Delivery of New Equity Interests) and section 5.13(b) (U.K. Sale Transaction) of the Plan. In
                satisfaction of its obligation to distribute the New Equity Interests to holders of Allowed Secured Lender Claims and Allowed Senior Note Claims pursuant to such sections of the Plan, Paragon Parent may distribute the New Equity Interests
                or will cause the New Equity Interests to be distributed to such holders;

            

    

     

    
      		(ii)	
              comply with section 5.7(b) (Preservation of Rights of Action; Resulting Claim Treatment) of the Plan;

            

    

     

    
      		(iii)	
              assign or otherwise transfer to Reorganized Paragon or any Transferred Subsidiary:

            

    

     

    
      	

            	(A)	
              licences to certain Intellectual Property Rights granted to Paragon Parent, and certain Intellectual Property Rights owned by Paragon Parent and used by Paragon Parent in connection with its business, pursuant to the IP Transfer Documentation;

            

    

     

    
      12

      
        

      

    

     

    
      		(B)	
              certain contracts and unexpired leases of Paragon Parent, pursuant to the Contract Assignment Agreement(s); and

            

    

     

    
      		(C)	
              such other assets owned by Paragon Parent and used by Paragon Parent in its role as ultimate parent company of the Paragon Offshore group; and

            

    

     

    in each case as may be agreed between Paragon Parent, Reorganized Paragon and the Administrators (each acting
      reasonably),

     

    
      		(iv)	
              transfer or otherwise provide the benefit of its Excess Cash to Reorganized Paragon or any Transferred Subsidiary; and

            

    

     

    
      		(v)	
              do or effect any other thing which Paragon Parent and the Administrators (each acting reasonably) considers is necessary to implement the U.K. Sale
                Transaction or the Plan,

            

    

     

    provided that, in each case, Paragon Parent and the Administrators (each acting reasonably) consider that the taking of
      such action would not result in any class of creditor receiving greater than 100% recovery on account of its Allowed Claims; and

     

    
      	

            	(b)	
              Paragon Offshore Finance Company shall transfer or otherwise provide the benefit of its Excess Cash to Reorganized Paragon or any Transferred
                Subsidiary, provided that Paragon Offshore Finance Company (acting reasonably) considers that the taking of such action would not result in any class of creditor receiving greater than 100% recovery on account of its Allowed Claims.

            

    

     

    
      	
              9.3

            	
              Consideration distributed to holders of other Claims

            

    

     

    Pursuant to the Plan and the Implementation Documents and in consideration for the release and discharge of such Claims
      on and from the Effective Date, Paragon Parent and/or certain Transferred Subsidiaries and/or Liquidating Subsidiaries, in their respective capacities as Disbursing Agent, shall take each of the steps described in section 2.1 (Treatment of Administrative Expense Claims), section 2.2 (Treatment of
        Fee Claims), section 2.3 (Treatment of Priority Tax Claims), section 4.1 (Class 1: Priority Non-Tax Claims), section 4.2 (Class 2: Other Secured Claims), section 4.3 (Class 3: Secured Lender Claims), section 4.4 (Class 4:
        Senior Notes Claims) section 4.5 (Class 5: General Unsecured Claims), section 4.6 (Class 6: Intercompany Claims) and section 5.17 (Restructuring Expenses) of the Plan together with any other actions or steps contemplated by the Plan in that regard.

     

    
      	10	
              POST EFFECTIVE DATE

            

    

     

    
      	10.1	
              Following the Effective Date and in accordance with the Plan:

            

    

     

    
      		(a)	
              Paragon Parent shall co-ordinate the Liquidating Subsidiary Wind-Down in accordance with section 5.13(c) (U.K. Administrators, U.K. Administration, and U.K. Sale Transaction) of the Plan;

            

    

     

    
      		(b)	
              any other actions or steps contemplated pursuant to the Plan will be effected in accordance with the terms of the Plan; and

            

    

     

    
      		(c)	
              for such time as the Management Agreement continues to be in effect, Paragon Parent and Reorganized Paragon shall comply with the terms of the
                Management Agreement.

            

    

    
      13

      
        

      

    

    

    

    
      	11	
              LIMITATIONS

            

    

     

    Nothing in this Agreement, the Reorganization Documents, the Steps Paper or the Implementation Documents shall require
      any Party or the Administrators to (whether by action or omission) breach, or procure the breach of:

     

    
      	11.1	
              any law or regulation or fiduciary duties;

            

    

     

    
      	11.2	
              any law or regulation or duties applicable to the Administrators, including but not limited to their obligations pursuant to Schedule B1 of the
                Insolvency Act 1986; and

            

    

     

    
      	11.3	
              any order or direction of any relevant court or governmental body, in each case provided that such breach cannot be avoided or removed by taking steps
                (acting reasonably),

            

    

     

    in which case the relevant Party shall not be required to take any such act or omit to take any such act (as applicable).

     

    
      	12	
              TERMINATION

            

    

     

    
      	12.1	
               Mutual Voluntary Termination

            

    

     

    This Agreement may be terminated with immediate effect with the consent of each of Paragon Parent, Reorganized Paragon
      and the Administrators (such consent not to be unreasonably withheld).

     

    
      	12.2	
               Automatic Termination

            

    

     

    This Agreement will terminate immediately on the date upon which the Plan becomes null and void pursuant to section 9.3 (Effect of Failure of a Condition) of the Plan.

     

    
      	12.3	
              Effect of Termination

            

    

     

    If this Agreement terminates in accordance with this Clause 12 (Termination), the Parties shall immediately be released from all of their undertakings and other obligations under this Agreement, provided that such termination or release:

     

    
      		(a)	
              shall not limit or prejudice the rights of each Party against any other Party which have accrued or relate to breaches of the terms of this Agreement
                at the time of or prior to termination; and

            

    

     

    
      	

            	(b)	
              shall not limit the effectiveness of Clauses 1 (Interpretation),
                2 (Parties’ Rights and Obligations), 12.3 (Effect of Termination), 13 (Confidentiality and Announcements), 14 (Notices), 15 (Enforcement by Third Parties), 16 (Administrators’ Liability), 17 (Governing Law) and 18 (General).

            

    

     

    
      	13	
              CONFIDENTIALITY AND ANNOUNCEMENTS

            

    

     

    
      	13.1	
              Subject to Clause 13.2 (Confidentiality and
                  Announcements), the Parties agree to keep confidential and not disclose any confidential information in connection with this Agreement, the Reorganization Documents, the Implementation Documents, the Steps Paper and the Financial
                Restructuring.

            

    

     

    
      	13.2	
              Any Party may disclose any information that it is otherwise required to be kept confidential under this Clause 13 (Confidentiality and Announcements):

            

    

     

    
      		(a)	
              to the extent that such information is generally known to the public (not as a result of a breach of any duty of confidentiality);

            

    

    

    

    
      14

      
        

      

    

    

    

    
      	

            	(b)	
              to its professional advisers, directors, employees and officers, provided that the disclosing party procures that the people to whom the information is
                disclosed comply with the confidentiality undertakings in this Clause 13 (Confidentiality and Announcements);

            

    

     

    
      		(c)	
              to its auditors;

            

    

     

    
      		(d)	
              to the extent that disclosure is required by applicable rules, regulations, guidance or law;

            

    

     

    
      		(e)	
              to the extent disclosure is required or requested by a regulatory body, tax authority, governmental authority or securities exchange; and

            

    

     

    
      		(f)	
              with the prior written approval of the other Parties.

            

    

     

    
      	13.3	
              The Administrators and Paragon Parent, at a time when it is in administration, may disclose any information that it is otherwise required to be kept
                confidential under this Clause 13 (Confidentiality and Announcements) to the extent such disclosure is made in the exercise of the
                statutory duties of the Administrators or to the extent such disclosure is required to comply with current insolvency practice or to enable the Administrators to properly carry out the duties of their office.

            

    

     

    
      	13.4	
              Save for an announcement in the agreed form, no announcement, statement, circulation, or other publicity in connection with this Agreement or its
                subject matter (unless otherwise permitted by this Agreement) shall be made by or on behalf of the Parties, without the approval of the Administrators and Reorganized Paragon (such approval not to be unreasonably withheld or delayed).

            

    

     

    
      	14	
              NOTICES

            

    

     

    
      	14.1	
              Any confirmation or notice given under this Agreement must be in writing in the English language and may be given in person or by hand, post, courier
                or email.

            

    

     

    
      	14.2	
              The contact details of the Parties for all notices under this Agreement are as follows, or such other contact details as the Parties may notify to each
                other by not less than five Business Days’ written notice:

            

    

     

    
      		(a)	
              Paragon Parent

            

    

     

    Paragon Offshore plc (in administration)

      c/o Deloitte LLP,

      Four Brindleyplace,

      Birmingham,

    B1 2HZ,

      United Kingdom

      Email: nkahn@deloitte.co.uk, dsoden@deloitte.co.uk

      Fax: 0207 007 3442

      For the Attention of Neville Kahn and David Soden

     

    
      		(b)	
              Each Transferred Subsidiary each Liquidating Subsidiary (other than Paragon Parent) that is a Party

            

    

     

    c/o Paragon Offshore Plc (in administration)

      c/o Deloitte LLP,

      Four Brindleyplace,

      Birmingham, 

    B1 2HZ,

      United Kingdom

      Email: nkahn@deloitte.co.uk, dsoden@deloitte.co.uk

      Fax: 0207 007 3442

      For the Attention of Neville Kahn and David Soden

    

    

    
      15

      
        

      

    

    

    

    
      		(c)	
              Reorganized Paragon

            

    

     

    c/o Paragon Offshore Plc (in administration)

      c/o Deloitte LLP,

      Four Brindleyplace,

      Birmingham,

      B1 2HZ,

      United Kingdom

      Email: nkahn@deloitte.co.uk, dsoden@deloitte.co.uk

      Fax: 0207 007 3442

      For the Attention of Neville Kahn and David Soden

     

    
      		(d)	
              Administrators

            

    

     

    Neville Kahn and David Soden in their capacity as joint Administrators of Paragon Offshore plc (in administration)

      c/o Deloitte LLP

      Athene Place

      66 Shoe Lane, London

       EC4A 3BQ

      Email: nkahn@deloitte.co.uk; dsoden@deloitte.co.uk

      Fax: 0207 007 3442

      For the Attention of Neville Kahn and David Soden

     

    
      	
              14.3

            	
              Any notice under this Agreement will be deemed to be given as follows:

            

    

     

    
      		(a)	
              if in person, at the time of delivery;

            

    

     

    
      		(b)	
              if by inland post, three Business Days after being deposited in the post, postage prepaid in a correctly addressed envelope;

            

    

     

    
      		(c)	
              if by international priority courier delivery, three days after delivery to such courier; or

            

    

     

    
      		(d)	
              if by email or fax, when received in legible form.

            

    

     

    
      	
              14.4

            	
              For the purpose of this Agreement, an email notice will be treated as being in writing.

            

    

     

    
      	15	
              ENFORCEMENT BY THIRD PARTIES

            

    

     

    Unless otherwise expressly provided to the contrary in this Agreement and subject to Clause 16 (Administrators’ Liability) below, a person who is not a party has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of
      any term of this Agreement.

     

    
      	16	
              ADMINISTRATORS’ LIABILITY

            

    

     

    
      	16.1	
              The Administrators are party to this Agreement in their personal capacities only for the purposes of receiving the benefit of all releases,
                limitations, exclusions, undertakings, covenants and indemnities in their favour and in favor of Paragon Parent contained in this Agreement, from which the Administrators will continue to benefit notwithstanding the termination of the
                agency of the Administrators or their discharge from office as Administrators of Paragon Parent.

            

    

     

    
      	16.2	
              Each of the Administrators has entered into this Agreement (and any other Reorganization Document or Implementation Agreement) acting as agents for and
                on behalf of the Paragon Parent and neither of the Administrators, nor any subsequent liquidator, nor any of their firm, members, partners, directors, officers, employees, advisers, representatives or agents shall incur any personal
                liability whatever in respect of any of the obligations undertaken by Paragon Parent or in respect of any failure on the part of Paragon Parent to observe, perform or comply with any such obligations; or under or in relation to any
                associated arrangements or negotiations; or under any document or assurance made pursuant to this Agreement (and any other Reorganization Document or Implementation Document).

            

    

     

    
      16

      
        

      

    

     

    
      	16.3	
              The exclusion of liability set out in this Clause 16 (Administrators’
                  Liability) shall arise and continue notwithstanding the termination of the agency of the Administrators and shall operate as a waiver of any and all claims (including, but not limited to, claims in tort, equity and common law as
                well as under the laws of contract).

            

    

     

    
      	16.4	
              Each of the Administrators’ firm, its members, partners, directors, officers, employees, agents, advisers and representatives shall be entitled to rely
                on, enforce and enjoy the benefit of this Clause 16 (Administrators’ Liability) as if they were a party to this Agreement.

            

    

     

    
      	17	
              GOVERNING LAW

            

    

     

    
      	17.1	
              This Agreement and any non-contractual obligations arising out of or in connection with this Agreement shall be governed by and construed in accordance
                with English law.

            

    

     

    
      	17.2	
              The Parties irrevocably agree that the courts of England shall have exclusive jurisdiction to hear and determine any suit, action or proceeding and/or
                to settle any dispute which may arise out of or in connection with or in any way relate to this Agreement or the U.K. Sale Transaction and, for such purposes, irrevocably submit to the jurisdiction of the courts of England.

            

    

     

    
      	17.3	
              Each of the Parties irrevocably waives any objection which it might now or hereafter have to the courts of England being nominated as the forum to hear
                and determine any suit, action or proceeding and/or any dispute which may arise out of or in connection with or in any way relate to this Agreement or the U.K. Sale Transaction and agrees not to claim that such court is not a convenient or
                appropriate forum and further irrevocably agrees that a judgment in respect of any such suit, action or proceedings and/or dispute brought in the courts of England shall be conclusive and binding upon it and may be enforced in the courts of
                any other jurisdiction.

            

    

     

    
      	18	
              GENERAL

            

    

     

    
      	18.1	
              This Agreement may not be modified, amended or supplemented except in writing by each of Paragon, Parent, Reorganized Paragon and the Administrators.

            

    

     

    
      	18.2	
              This Agreement is intended to bind and inure to the benefit of the Parties and their respective successors, assigns and transferees.

            

    

     

    
      	18.3	
              Failure by the Parties or the Administrators to require performance of any term or condition of this Agreement shall not prevent the subsequent
                enforcement of such term or condition nor shall such failure be deemed to be a waiver of any subsequent breach of this Agreement, or any right or remedy granted by this Agreement or by the general law in respect of such breach.

            

    

     

    
      	18.4	
              If any provision of this Agreement is held not to be valid but would be valid if part of the wording were deleted or modified then such provision shall
                apply with such deletion or modification as may be necessary to make it enforceable.

            

    

     

    
      	18.5	
              The terms of this Agreement represent the entire agreement between the Parties relating to the subject matter of this Agreement and this Agreement
                supersedes any previous arrangement between the Parties in relation to the matters dealt with in this Agreement.

            

    

     

    
      17

      
        

      

    

    

    

    
      	18.6	
              This Agreement may be signed in hard copy, by original fax or by pdf copy in any number of counterparts, and by each of the Parties on separate
                counterparts, each of which so signed and delivered will be an original, but all counterparts will together constitute one and the same Agreement.

            

    

     

    IN WITNESS hereof this Agreement has
      been signed on the date first above written.

    
      18

      
        

      

    

    SCHEDULE 1

     

    INDICATIVE IMPLEMENTATION DOCUMENTS

    	
            No.

          	
            Document

          
	
            1.

          	
            Take Back Debt Agreement

          
	
            2.

          	
            New Letter of Credit Agreement

          
	
            3.

          	
            Existing L/C Escrow Agreement(s)

          
	
            4.

          	
            Amended Certificates of Incorporation of the Reorganized Debtors

          
	
            5.

          	
            Amended By-Laws of the Reorganized Debtors

          
	
            6.

          	
            Amended Certificates of Incorporation of Reorganized Paragon

          
	
            7.

          	
            Amended By-Laws of Reorganized Paragon

          
	
            8.

          	
            Shareholders Agreement

          
	
            9.

          	
            Registration Rights Agreement

          
	
            10.

          	
            Litigation Trust Agreement

          
	
            11.

          	
            Schedule of Rejected Contracts and Leases

          
	
            12.

          	
            IP Transfer Documentation

          
	
            13.

          	
            Contract Assignment Agreement(s)

          
	
            14.

          	
            Management Agreement

          

    

    

    
      19

      
        

      

    

     

    SCHEDULE 2

     

    LIQUIDATING SUBSIDIARIES

     

    Paragon Offshore Plc (in administration) 

     

    Paragon Offshore Sterling Ltd 

     

    Paragon Offshore Drilling AS

     

    Paragon Offshore Brasil Investimento E Participacoes Ltda 

     

    Paragon Offshore Finance Company 

     

    Paragon Offshore (Canada) Ltd 

     

    Paragon Offshore AS

     

    Paragon Offshore Drilling (Cyprus) Limited Frontier Drilling Nigeria Limited 

     

    Paragon Offshore USA Inc.

     

    Paragon Offshore (Asia) Pte. Ltd 

     

    Frontier Offshore Exploration India Ltd 

     

    Paragon Holding SCS 2 Ltd.

     

    Paragon FDR Holdings Ltd

     

    Paragon International Investment Limited

     

    Bawden Drilling Inc.

     

    Bawden Drilling International Ltd

     

    Paragon Seillean AS

     

    Paragon (Seillean) KS

     

    Kulluk Arctic Services, Inc. Paragon Asset (ME) Ltd

     

    Paragon Offshore (Luxembourg) S.à r.l.

     

    Paragon Duchess Ltd

     

    Arktik Drilling Limited, Inc.

     

    Resolute Insurance Group Ltd

     

    Paragon Offshore Drilling do Brasil Ltda

     

    
      20

      
        

      

    

    

    

    Paragon Holding NCS 2 S.à r.l. 

    

    

    Paragon Leonard Jones LLC 

    

    

    Paragon Holding SCS 1 Ltd 

    

    

    Paragon Operating (ME) Ltd 

    

    

    Paragon Offshore Hungary Kft.

     

    PGN Offshore Drilling (Malaysia) Sdn. Bhd. 

    

    

    Paragon Offshore (Labuan) Pte. Ltd 

    

    

    Paragon Offshore do Brasil Ltda 

    

    

    Paragon Offshore Contracting GmbH 

     

    Paragon Drilling Services 7 LLC

     

    Paragon Offshore Leasing (Luxembourg) S.à r.l. 

    

    

    Paragon Drilling Nigeria Ltd 

     

    Paragon Offshore Ven, C.A.

     

    Paragon Drilling Ven, C.A. 

    

      Paragon Offshore Investment Ltd 

     

    Paragon Offshore (Gibraltar) Ltd

     

    Prospector Offshore Drilling Rig Construction S.à.r.l.

     

    Prospector Rig 6 Owning Company S.à.r.l.

     

    Prospector Rig 7 Owning Company S.à.r.l.

     

    Prospector Rig 8 Owning Company S.à.r.l.

     

    
      21

      
        

      

    

    

    

    SCHEDULE 3

     

    STRUCTURE OF REORGANIZED PARAGON GROUP

     

    

    

     

    
      22

      
        

      

    

     

    

    

    

    
      23

      
        

      

    

    

    SCHEDULE 4

     

    STRUCTURE OF PARAGON PARENT AND LIQUIDATING SUBSIDIARIES

     

    

    

    

    
      24

      
        

      

    

    

       

    

  

  
    25

    
      

    

  

  

  

    SCHEDULE 5

     

    FORM OF ACCESSION DEED

    

    

    To:          Each of the
        other parties to the Implementation Agreement

     

    From:      [Liquidating
        Subsidiary]/[Transferred Subsidiary]

     

    Dated:

     

    Dear Sirs

     

    Implementation agreement

    dated [           ] (the “Implementation Agreement” )

     

    
      	1.	
              We refer to the Implementation Agreement. This deed (the “Accession
                  Deed”) shall take effect as an Accession Deed for the purposes of the Implementation Agreement. Terms defined in the Implementation Agreement have the same meaning in paragraphs 1-3 of this
                Accession Deed unless given a different meaning in this Accession Deed.

            

    

     

    
      	2.	
              [Liquidating Subsidiary]/[Transferred Subsidiary] agrees to become a Party to the Implementation Agreement and to be bound by the terms of the
                Implementation Agreement pursuant to Clause 2.3 of the Implementation Agreement (the “Acceding [Liquidating Subsidiary]/[Transferred Subsidiary]”).
                [Liquidating Subsidiary]/[Transferred Subsidiary] is a company duly incorporated under the laws of [name of relevant jurisdiction] and is a limited liability company and registered number [                                    ].

            

    

     

    
      	3.	
              [Liquidating Subsidiary’s]/[Transferred Subsidiary’s] administrative details for the purposes of the Implementation Agreement are as follows:

            

    

     

    Address:

    Email:

    Fax No.: 

    Attention:

     

    
      	4.	
              IT IS AGREED as follows:

            

    

     

    
      		(a)	
              Terms defined in the Implementation Agreement shall, unless otherwise defined in this Accession Deed, bear the same meaning when used in this
                paragraph 4.

            

    

     

    
      	

            	(b)	
              The Acceding [Liquidating Subsidiary]/[Transferred Subsidiary] confirms that it intends to be party to the Implementation Agreement as a [Liquidating
                Subsidiary]/[Transferred Subsidiary], undertakes to perform all the obligations expressed to be assumed by a [Liquidating Subsidiary]/[Transferred Subsidiary] under the Implementation Agreement and agrees that it shall be bound by all the
                provisions of the Implementation Agreement as if it had been an original party to the Implementation Agreement.

            

    

     

    
      	5.	
              Clause 16 (Administrators’ Liability) of the
                Implementation Agreement is deemed to be incorporated into this Accession Deed, with the appropriate amendments.

            

    

     

    
      	6.	
              This Accession Deed and any non-contractual obligations arising out of or in connection with it are governed by English law.

            

    

     

    
      26

      
        

      

    

    

    

    THIS ACCESSION DEED has been executed as
      a deed by the Acceding [Liquidating Subsidiary]/[Transferred Subsidiary] and is delivered on the date stated above.

     

    Acceding [Liquidating Subsidiary]/[Transferred Subsidiary]

     

    [EXECUTED AS A DEED          ]

    

    

    	
            By: [Liquidating Subsidiary]/[Transferred Subsidiary] )

          	 	 
	 	 	
	
            Signature of Director

          	 	 
	 	 	 
	
            Name of Director

          	 	 
	 	 	
	
            Signature of Director / Secretary

          	 	 
	 	 	 
	
            Name of Director / Secretary]

          	 	 
	 	 	 
	
            OR

          	 	 
	 	 	 
	
            [EXECUTED AS A DEED

          	 	 
	
            By: [Liquidating Subsidiary]/[Transferred Subsidiary]

          	 	 
	 	 	 
	
            Signature of Director

          	 	 
	 	 	 
	
            Name of Director

          	 	 

    

    

    	 	
            in the presence of:

          	 	 
	 	 	 	 
	 	
            Signature of witness:

          	 	 
	 	 	 	 
	 	
            Name of witness:

          	 	 
	 	 	 	 
	 	
            Address of witness:

          	 	 
	 	 	 	 
	 	
            Occupation of witness:

          	
             

          	
            ]

          

     

    
      27

      
        

      

    

     

    AGREED AND ACKNOWLEDGED

     

    
      

    

    EXECUTED for and on behalf of PARAGON OFFSHORE PLC (IN ADMINISTRATION) acting by [David Soden][Neville Kahn], one of the Administrators, acting as its agent and without personal
      liability

    

      

    

    EXECUTED for and on behalf of PARAGON OFFSHORE LIMITED acting by [ ● ]

    

    

    

    
      28

      
        

      

    

    

    

    
      	
              PARAGON OFFSHORE PLC (IN ADMINISTRATION)

            	
               

            
	 	 	 
	
              SIGNED for and on behalf of
                PARAGON OFFSHORE PLC (IN ADMINISTRATION) acting by David Soden, one of the Administrators, acting as its agent and without personal liability

            	 

    

    
      29

      
        

      

    

    
      

      

      
        	
                JOINT ADMINISTRATORS

              	
                 

              
	 	 	 
	
                SIGNED by David
                  Soden 

                in his capacity as one of the ADMINISTRATORS
                  on behalf of each of them (without personal liability and solely for the benefit of the provisions of this Agreement in their favour)

              	 

      

      

    

    
      30

      
        

      

    

     

    TRANSFERRED SUBSIDIARIES

     

    
      31

      
        

      

    

    
      
        
          

        

        

        

        SIGNED by _________________ authorized for Paragon (Middle East) Limited

         

        
          

        

        

        

        SIGNED by _________________ authorized for Paragon Asset (U.K.) Ltd.

         

        
          

        

        

        

        SIGNED by _________________ authorized for Paragon Asset Company Limited

         

        
          

        

        

        

        SIGNED by _________________ authorized for Paragon International Finance Company

         

        
          

          

          

        

        SIGNED by _________________ authorized for Paragon Offshore (GOM) Inc.

         

        
          

        

        

        

        SIGNED by _________________ authorized for Paragon Offshore (Land Support) Limited

         

        
          

        

        

        

        SIGNED by _________________ authorized for Paragon Offshore (Nederland) B.V.

         

        
          

        

        

        

        SIGNED by _________________ authorized for Paragon Offshore (North Sea) Ltd.

         

        
          

        

        

        

        SIGNED by _________________ authorized for Paragon Offshore Cameroon S.a r.l

         

        
          

        

        

        

        SIGNED by _________________ authorized for Paragon Offshore Drilling LLC

         

        
          

        

        

        

        SIGNED by _________________ authorized for Paragon Offshore Enterprises Ltd.

      

      
        32

        
          

        

      

      
        
          

          

          

        

        SIGNED by _________________ authorized for Paragon Offshore Holdings US Inc.

         

        
          

        

        

        

        SIGNED by _________________ authorized for Paragon Offshore International Ltd.

         

        
          

        

        

        

        SIGNED by _________________ authorized for Paragon Offshore Leasing (Switzerland) GmbH

         

        
          

        

        

        

        SIGNED by _________________ authorized for Paragon Offshore Management Services, S. de R.L. de C.V.

         

        
          

        

        

        

        SIGNED by _________________ authorized for Paragon Offshore Services LLC

         

        
          

        

        

        

        SIGNED by _________________ authorized for Prospector Finance II S.A.

         

        
          

        

        

        

        SIGNED by _________________ authorized for Prospector Finance S.à.r.l.

         

        
          

        

        

        

        SIGNED by _________________ authorized for Prospector New Building S.à.r.l.

         

        
          

        

        

        

        SIGNED by _________________ authorized for Prospector Offshore Drilling (Singapore) PTE. LTD.

        

        

      

      
        

        

        

        SIGNED by _________________ authorized for Prospector Offshore Drilling (UK) Ltd.

         

        
          

        

        

        

        SIGNED by _________________ authorized for Prospector Offshore Drilling Limited

      

    

    
      33

      
        

      

    

    
      
        

      

      

      

      SIGNED by _________________ authorized for Prospector Offshore Drilling S.à.r.l.

       

      
        

      

      

      

      SIGNED by _________________ authorized for Prospector Rig 1 Contracting Company S.à.r.l.

       

      
        

        

      

      SIGNED by _________________ authorized for Prospector Rig 1 Owning Company S.à.r.l.

       

      
        

      

      

      

      SIGNED by _________________ authorized for Prospector Finance Rig 1 S.à.r.l.

       

      
        

        

      

      SIGNED by _________________ authorized for Prospector Rig 5 Contracting Company S.à.r.l.

       

      
        

      

      

      

      SIGNED by _________________ authorized for Prospector Rig 5 Owning Company S.à.r.l.

      
        34

        
          

        

      

    

    LIQUIDATING SUBSIDIARIES

    
      35

      
        

      

    

    
      
        

        

        

      

      SIGNED by _________________ authorized for Arktik Drilling Limited, Inc.

       

      
        

      

      

      

      SIGNED by _________________ authorized for Bawden Drilling Inc.

       

      
        

      

      

      

      SIGNED by _________________ authorized for Bawden Drilling International Ltd.

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon Offshore Hungary Kft

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon Offshore Drilling do Brasil Ltda.

       

      
        

      

      

      

      SIGNED by _________________ authorized for Frontier Drilling Nigeria Limited

       

      
        

      

      

      

      SIGNED by _________________ authorized for Kulluk Arctic Services, Inc.

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon Drilling Nigeria Limited

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon (Seillean) KS

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon Asset (ME) Ltd.

      

      

      
        36

        
          

        

      

    

    
      
        

      

      

        SIGNED by _________________ authorized for Paragon Drilling Services 7 LLC

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon Duchess Ltd.

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon FDR Holdings Ltd.

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon Holding NCS 2 S.à r.l.

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon Holding SCS 1 Ltd.

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon Holding SCS 2 Ltd.

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon Leonard Jones LLC

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon Offshore (Asia) Pte Ltd

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon Offshore (Canada) Ltd.

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon Offshore (Labuan) Pte. Ltd.

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon Offshore (Luxembourg) S.à r.l.

      
        37

        
          

        

      

    

    
      
        

      

      

      

      SIGNED by _________________ authorized for Paragon Offshore AS

       

      
        

      

      

      

      SIGNED by _________________ authorized for Paragon Offshore Brasil Investimentos
          Participasões Ltda.

       

      
        

      

      

      SIGNED by _________________ authorized for Paragon Offshore Contracting GmbH

       

      

       
      SIGNED by _________________ authorized for Paragon Offshore do Brasil Ltda.

       

      

       
      SIGNED by _________________ authorized for Paragon Offshore Drilling (Cyprus) Limited

       

      

       
      SIGNED by _________________ authorized for Paragon Offshore Drilling AS

       

      

       
      SIGNED by _________________ authorized for Paragon Offshore Finance Company

       

      

       
      SIGNED by _________________ authorized for Paragon Offshore Leasing (Luxembourg) S.à
          r.l.

       

      

       
      SIGNED by _________________ authorized for Paragon Offshore Sterling Ltd.

       

      

       
      SIGNED by _________________ authorized for Paragon Offshore USA Inc.

       

      

       
      SIGNED by _________________ authorized for Paragon Operating (ME) Ltd.

      
        38

        
          

        

      

    

    
      
        

      

       

      SIGNED by
        _________________ authorized for Paragon Seillean AS

       

      
        

      

       

      SIGNED by
        _________________ authorized for PGN Offshore Drilling (Malaysia) Sdn. Bhd.

       

      
        

      

       

      SIGNED by
        _________________ authorized for Resolute Insurance Group Ltd.

       

      
        

      

       

      SIGNED by
        _________________ authorized for Paragon International Investment Limited

       

      
        

      

       

      SIGNED by
        _________________ authorized for Paragon Offshore Investment Ltd

       

      
        

      

       

      SIGNED by
        _________________ authorized for Prospector Offshore Drilling Rig Construction S.à.r.l.

       

      
        

      

       

      SIGNED by
        _________________ authorized for Prospector Rig 6 Owning Company S.à.r.l.

       

      
        

      

       

      SIGNED by
        _________________ authorized for Prospector Rig 7 Owning Company S.à.r.l.

       

      
        

      

       

      SIGNED by
        _________________ authorized for Prospector Rig 8 Owning Company S.à.r.l.

       

      
        

      

       

      SIGNED by
        _________________ authorized for Paragon Offshore Ven, C.A.

       

      
        

      

       

      SIGNED by
        _________________ authorized for Paragon Drilling Ven, C.A.

    

    
      39

      
        

      

    

    PARAGON OFFSHORE LIMITED

     

    
      

    

    

    

    SIGNED by _________________ authorized for Paragon
      Offshore Limited

    
      40

      
        

      

    

    SIGNATORIES

     

    	
            PARAGON OFFSHORE PLC (IN ADMINISTRATION)

          	 
	 	 
		 
	
            SIGNED for and on behalf of PARAGON OFFSHORE PLC (IN ADMINISTRATION) acting by David Soden, one of the Administrators, acting as its agent and without personal liability

          	 

     

    [U.K. IMPLEMENTATION AGREEMENT - AMENDMENT AGREEMENT]

    
      
        

      

    

    	
            JOINT ADMINISTRATORS

          	 
	 	 
		 
	 	 
	
            SIGNED by David Soden in his capacity as one of the
              ADMINISTRATORS on behalf of each of them (without personal liability and solely for the benefit of the provisions of this Agreement in their
              favour)

          	 

     

    [U.K. IMPLEMENTATION AGREEMENT - AMENDMENT AGREEMENT]

    
      
        

      

    

    	
            PARAGON OFFSHORE LIMITED

          	 
	 	 
	 	 
	 
	
            SIGNED by Lic M. Ahlstrom authorized for Paragon
              Offshore Limited

          

     

    [U.K. IMPLEMENTATION AGREEMENT - AMENDMENT AGREEMENT]Exhibit 10.9

  

  

  	
          PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED BECAUSE SUCH PORTIONS ARE BOTH NOT MATERIAL AND WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY
            DISCLOSED. THE OMISSIONS HAVE BEEN INDICATED BY ASTERISKS (“[***]”).

           

        

  EXECUTION VERSION

   

  DATED 30 APRIL 2018

   

  KEPPEL FELS LIMITED

   

  and

   

  BORR DRILLING LIMITED

  

  
   

   

  
    
 

   

  MASTER AGREEMENT

   

   

  
 

  

  
    
      
 

  

  
  THIS AGREEMENT is made on 30 April 2018

   

  BETWEEN:

   

  		(1)	KEPPEL FELS LIMITED, a corporation incorporated under the laws of Singapore and having its registered office at 50 Gul Road Singapore 629351 (the “Seller”); and

   

  		(2)	BORR DRILLING LIMITED, a company incorporated under the laws of Bermuda and having its office at Thistle House, 4 Burnaby Street, Hamilton HM11 Bermuda (“Buyer Parent”).

   

  (Each of the Seller and the Buyer Parent are hereinafter referred to individually as a “Party” and, collectively, the “Parties”.)

   

  WHEREAS:

   

  		(A)	The Parties entered into a Letter of Intent dated 22 March 2018 in terms of which they agreed the main terms on which they would negotiate the terms of a sale by the Seller to nominated wholly-owned subsidiaries of
          the Buyer Parent (each a “Buyer” and together the “Buyers”) to acquire, five (5) B-Class/Super B jack-up drilling rigs, listed in Schedule 1 hereto (each a “Rig” and together the “Rigs”).

   

  		(B)	Three of the Rigs are complete (each a “Completed Rig” and together the “Completed Rigs”) and two of the Rigs are under construction (each a “Construction Rig” and together the “Construction
            Rigs”).

   

  		(C)	The Parties have completed their negotiations and agreed to enter into this Agreement to record the terms and conditions on which they and the Buyers will enter into definitive sale and purchase agreements for the
          Rigs.

   

  NOW THEREFORE, it is hereby agreed as follows:

   

  	1.	definitions

   

  		1.1	For the purposes of this Agreement, terms defined in the Recitals and elsewhere in this Agreement have the meanings set out therein, and the following words and expressions shall have the meanings ascribed to them
          below:

   

  “Affiliate” means in relation to a Party, any company which is affiliated to it, and a company is deemed to be affiliated to another if the first
    company is controlled by, under common control with or controls the other: a company shall be deemed to have control of another if (directly or indirectly) it owns a majority of the voting shares of, or is entitled (directly or indirect) to appoint a
    majority of the directors of the other company.

   

  “Business Day” means any day (which is not a Saturday or a Sunday or any public holiday) on which banks are required to be open in London, Oslo,
    Singapore and New York.

   

  “Confidential Information” has the meaning given to it in Clause 10.

   

  “Construction Contract” means an agreement for the construction and delivery in the form to be agreed by Parties in respect of the sale and
    purchase of the Construction Rigs.

  
    Page 1

    
      
 

  

  

  

  “Delivery Date” means the date of delivery of a Rig, being the date set out in the second column of Schedule 1 or such other delivery date as
    agreed by the Seller, the relevant Buyer and the Buyer Parent in writing in respect of a Rig, subject always to Clause 7.2.

   

  “Lien” means any lien, mortgage, trust, encumbrance, pledge, charge, lease, interest, easement, servitude, right of others, transfer or security
    interest of any kind, including those arising under any securitisation or any conditional sale or other title retention agreement, and any other right or arrangement with any creditor to have its claim satisfied out of any property or assets with the
    proceeds therefrom, prior to the general creditors of the owner thereof (whether or not filed, recorded, perfected or effective).

   

  “Losses” means any and all claims, losses, damages, liabilities, costs and expenses (including reasonable disbursements and legal fees) that are
    imposed upon or incurred by any Person entitled to be indemnified under this Agreement.

   

  “Original Buyer” means a person who was party as “buyer” to an Original Contract, either as the initial contracting buyer or buyer substituted by
    way of nomination or novation.

   

  “Original Contract” means a contract for the design, construction and sale of a Rig by the Seller for an Original Buyer.

   

  “SPA” means a sale and purchase agreement in the form to be agreed by Parties in respect of the sale and purchase of the Completed Rigs.

   

  “Tax” includes (without limitation) all taxes, levies, duties, imposts, charges and withholdings of any nature whatsoever, as well as any transfer,
    recording, registration and other fees, in each case in any jurisdiction and together with all penalties, charges and interest relating to any of them or to any failure to file any return required for the purposes of any of them and “Taxes” and
    “Taxation” shall be construed accordingly.

   

  	2.	EFFECTIVE DATE OF AGREEMENT

   

  		2.1	This Agreement shall come into effect on the date of execution by both Parties but the obligations and rights of the Parties hereunder shall commence from the date on which the following conditions have been met (the
          “Effective Date”):

   

  		(a)	the Buyer Parent confirms to the Seller that the Buyer Parent has raised sufficient finance;

   

  		(b)	the board of each of the Parties unconditionally approves this Master Agreement, the SPAs, the Construction Contracts, and the Credit Agreement (and the form of security documents to be entered into pursuant
          thereto); It being agreed that the Buyer Parent shall be entitled to complete its due diligence review of the documentation relating to the Rigs (including the GA Drawings and Specifications, class and other documentation specified by the Buyer
          Parent) until the Buyer Parent’s board meeting takes place; and

   

  		(c)	this Master Agreement, the SPAs, the Construction Contracts and the Credit Agreement for all of the Rigs are duly executed by authorised signatories of both Parties and the Buyers and the exchange of the parent
          guarantees stipulated in Clause 6.1 and Clause 6.2 as security for the Parties’ respective obligations under the relevant SPAs and Construction Contracts. If the Effective Date does not occur by 23:59 hours in Oslo on the date falling 20 calendar
          days from the date hereof (or such later date as the Parties may agree in writing) this Agreement shall automatically terminate at 00:01 on the following calendar day (the “Termination Date”) and neither Party (nor any Buyer) shall have
          any obligation or liability to the other except under Clause 10 (Press Release and Confidential Information).

     

  

  
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  		2.2	Without prejudice to any of the Parties’ accrued rights, the term of this Agreement shall not exceed 8 years from the Effective Date, upon which this Agreement shall automatically terminate without obligation or
          liability owing to the other Party save for Clause 11 (Press Release and Confidential Information).

   

  	3.	BUYERS

   

  	3.1	The Buyer Parent shall nominate wholly-owned single purpose Marshall Islands entitles to be the Buyers of the Rigs, one such Buyer for each Rig.

   

  	4.	PRICE AND PAYMENT TERMS

   

  		4.1	The total purchase price for the Rigs shall be Seven hundred and twenty million United States Dollars (USD 720,000,000), being a price of One hundred and forty-four million United States Dollars (USD144,000,000) per
          Rig (the “Rig Purchase Price”) plus the Deferred Payment.

   

  		4.2	A first instalment of 40% of the aggregate of the Rig Purchase Prices, being Two hundred and eighty-eight million United States Dollars (USD 288,000,000)(the “First Instalment”) shall be payable within 15
          Business Days of the Effective Date.

   

  		4.3	The balance of 60% of each Rig Purchase Price, being Eighty-six million four hundred thousand, United States Dollars (USD86,400,000) per Rig (each, a “Loan”) shall be due on the Delivery Date for that Rig and
          shall be settled by way of an interest-bearing secured facility from the Lender (as defined below) repayable [***] at any time in the Buyer’s discretion but no later than the date falling 60 months from the Delivery Date for its Rig.

   

  		4.4	A final payment (the “Deferred Payment”) will be payable to the Lender by each Buyer under the Credit Agreement together with its repayment of the Loan. The Deferred Payment shall be in the amount of USD
          [***]. If the Buyer elects to take early delivery of a Rig or elects to repay any Loan prior to the final payment date, the Parties agree that they will discuss a potential reduction of the Deferred Payment for that Rig in an amount to be
          mutually agreed. For the avoidance of doubt, if Parties are unable to reach mutual agreement on any reduction, the Deferred Payment shall remain at USD [***].

   

  		4.5	The Seller shall extend, or shall procure that Caspian Rigbuilders Pte. Ltd. or one of the Seller’s other Affiliates reasonably acceptable to the Buyer and the Buyer Parent shall enter into a credit agreement (the “Credit

            Agreement”) in order to extend the Loan to each Buyer on terms and conditions as set out in Schedule 2. The entity extending the Loan shall hereinafter be referred to as the “Lender”.

   

  
    	
            4A

          	
            DELIVERY DATE OF B366

          

  

   

  The Parties agree that once the SPAs and the Construction Contracts for all of the Rigs become effective, the delivery date for the Seller’s newbuild rig
    bearing the hull number B366 shall be extended to July 2020 on terms that a bullet payment in an amount of USD [***] will be paid together with the final delivery instalment to cover the Seller’s related costs and expenses in respect of such extension
    (excluding any costs unrelated to the extension, such excluded costs include but are not limited to warranty extension and/or preservation). The Parties further agree to execute an addendum to the building contract signed between Borr Tivar Inc and the
    Seller to formally reflect the foregoing.

   

  
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  	5.	SECURITY

   

  		5.1	Each Buyer’s obligation to pay the First Instalment, the Loan and the Deferred Payment under each SPA or Construction Contract (as applicable) and each Credit Agreement shall be secured by a parent guarantee from the
          Buyer Parent.

   

  		5.2	The Seller’s obligation to refund each First Instalment and other amounts in accordance with the terms of each SPA and Construction Contract (including procuring the refund of interest on the Loan due under the
          Credit Agreement paid to the Lender) shall be secured by a guarantee from Keppel Offshore & Marine Ltd.

   

  		5.3	Each Buyer’s obligation to repay the Loan pursuant to the Credit Agreement shall be secured by a first priority mortgage over its Rig (each a “Mortgage”) and an assignment of insurances and requisition
          compensation and other security as referred to in Schedule 2.

   

  	6.	DELIVERY AND TITLE

   

  		6.1	Delivery of the Rigs shall take place in accordance with the terms of the respective SPAs and Construction Contracts, and shall be subject to the terms set out therein.

   

  		6.2	If the Buyer so requests, the Seller will deliver a Rig at a date which is earlier than the Delivery Date set out in Schedule 1 provided that the relevant Buyer gives the Seller at least 3 months’ written notice in
          respect of the Completed Rigs and a period which the Parties agree is reasonable on a case-by-case basis in respect of the Construction Rigs.

   

  		6.3	Risk and title (free of Liens other than a Mortgage) to a Rig shall pass to the Buyer at the time and place recorded in a Protocol of Delivery and Acceptance for a Rig sold pursuant to a Construction Contract or in a
          Protocol for the Transfer of Title for a Rig sold pursuant to a SPA (as applicable) executed by both the Seller and the relevant Buyer on the Delivery Date for that Rig.

   

  		6.4	The Seller undertakes to the Buyer Parent for the benefit of itself and each Buyer that, prior to the delivery of the relevant Rig, each relevant Original Contract will have been validly terminated, and no claims
          will have been asserted or threated by any Original Buyer against the Seller or such Rig, The Buyer Parent acknowledges that the Seller will not give notice of termination to the Original Buyers of the Original Contracts prior to the Effective
          Date but that is without prejudice to the Seller’s obligations under this Agreement, the SPAs and the Construction Contracts to deliver all of their Rigs in accordance with their respective terms.

   

  
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  	7.	REPRESENTATIONS AND WARRANTIES

   

  	7.1	The Seller hereby represents and warrants to the Buyer on the date hereof in the terms of the representations and warranties set out below:

   

  		(a)	it is a company duly organised and validly existing under applicable law, and has full corporate power and authority to conduct its business as it is presently being conducted and it has all necessary corporate
          authority and has taken, or will be taking, all corporate action necessary to enter into this Agreement, the SPAs and the Construction Contracts and to consummate the transactions contemplated hereby and to perform its obligations hereunder.

   

  		(b)	neither the execution and delivery of this Agreement, the SPAs or the Construction Contracts (or any of them) by the Seller nor the performance by the Seller of its obligations hereunder will result in (i) a
          violation of the memorandum or articles of association of the Seller, or (ii) a violation by the Seller of any applicable law; and

   

  		(c)	no consent, approval or authorisation of, or declaration, filing or registration with, any governmental authority, or any other person, is required to be made or obtained by the Seller in connection with the
          execution, delivery and performance of this Agreement, the SPAs or the Construction Contracts (or any of them) and the performance of its obligations hereunder or thereunder.

   

  		7.2	The Buyer Parent hereby represents and warrants to the Seller on the date hereof in the terms of the representations and warranties set out below:

   

  		(a)	it is a corporation duly organised and validly existing under applicable law and has full corporate power and authority to conduct its business as it is presently being conducted and has all necessary corporate
          authority and has taken all corporate action necessary to enter into this Agreement, to consummate the transactions contemplated hereby and to perform its obligations hereunder;

   

  		(b)	neither the execution and delivery of this Agreement, the SPAs or the Construction Contracts (or any of them) by the Buyer Parent and/or the Buyers nor the performance by the Buyer Parent or a Buyer of its respective
          obligations hereunder or thereunder will result in (i) a violation of the constitutional documents of the Buyer Parent or any Buyer or (ii) a violation by the Buyer Parent or a Buyer of any applicable law; and

   

  		(c)	no consent, approval or authorisation of, or declaration, filing or registration with, any Governmental Authority, or any other person, is required to be made or obtained by the Buyer Parent or a Buyer in connection
          with the execution, delivery and performance of this Agreement, the SPAs or Construction Contracts or the performance of its obligations hereunder or thereunder.

   

  	8.	INDEMNIFICATION

   

  		8.1	The Seller irrevocably and unconditionally undertakes to hold harmless (on a full indemnity basis) the Buyer Parent and each Buyer and its and their respective directors, officers, employees and agents, from and
          against any Losses arising from or by reason of or related to any claim by an Original Buyer against a Buyer, the Parent Buyer or any Rig.

   

  
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  	9.	EXPENSES

   

  		9.1	Except as is otherwise specifically provided in this Agreement, and without prejudice to any claims for damages, each Party shall pay its own costs and expenses in connection with this Agreement, the SPAs and the
          Construction Contracts and the transactions contemplated hereby, including (without limitation) all legal fees and disbursements, accounting fees and other expenses and any Taxes thereon or arising in connection therewith.

   

  	9.2	The Seller shall be liable for all costs relating to the registration of the Mortgage.

   

  	10.	PRESS RELEASE AND CONFIDENTIAL INFORMATION

   

  		10.1	The Parties agree that neither Party shall make public, the terms of, and timing of, any and all press releases or other announcements of this Agreement and neither Party shall make any public announcement without
          the prior written consent of the other Party, unless so required by applicable law or the requirements of a securities exchange or government authority, in which case, the Party required to make such announcement (“Announcing Party”) shall
          give notice to the other Party once it is aware of such requirement and the Parties shall use their best endeavours to agree on the form and timing of such public announcement without causing the Announcing Party to be in breach or violation of
          any applicable law or requirement.

   

  		10.2	The Parties shall, and the Buyer Parent shall procure that each Buyer shall, treat as confidential all information received or obtained by it as a result of entering into or performing this Agreement or the
          transactions contemplated herein which is not publicly available (“Confidential Information”) for the purposes of this Clause 10).

   

  Subject to this Clause 10.2, each of the Parties agrees to keep the Confidential Information concerning the other Party and any of their Affiliates in
    strict confidence and that, without the prior written consent of the other Party, will not disclose or permit any other person access to the Confidential Information except as provided in this Clause 10.2.

   

  Each of the Parties and the Buyers may disclose to its permitted contractors and Affiliates any of the Confidential Information that is reasonably
    necessary for such permitted contractors to perform their duties with respect to the Rigs; provided, however, that they shall first have required their respective contractors to sign a confidentiality agreement in form and substance reasonably suited
    to implement the purpose of this Clause 10.2.

   

  Each Party shall be responsible for causing its permitted contractors and Affiliates to maintain the confidentiality of the Confidential Information. Each
    Party acknowledges and agrees that use or disclosure thereof by the other Party (“Receiving Party”) or any Affiliate, agents, representatives, servants, contractors or employees of the Receiving Party, other than in accordance with the express
    terms of this Agreement, constitutes a material breach of the Agreement or, after the Termination Date, of the Party’s (“Disclosing Party”) continuing rights. In such event, the Receiving Party acknowledges that the Disclosing Party may be
    immediately and irreparably harmed, that money damages may not provide full and adequate relief, and that, notwithstanding any other provision hereof, the Disclosing Party may therefore immediately seek to terminate this Agreement upon written notice,
    and to obtain an order for appropriate injunctive relief.

   

  
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  		10.3	Notwithstanding the other provisions of this Clause 10, a Party and a Buyer may disclose Confidential Information:

   

  		(a)	if and to the extent required by applicable law, any securities exchange or governmental authority of competent jurisdiction, subject to the other Party agreeing to the terms of any such disclosure, such agreement
          not to be unreasonably withheld or delayed;

   

  		(b)	to its employees, professional advisers, auditors and banks who have been informed of the confidentiality of the information prior to disclosure, have a legitimate need to know such information and who will
          themselves be subject to a duty of confidentiality of similar nature and scope to that contained in this Clause 10;

   

  		(c)	if and to the extent the information is or has come into the public domain through no fault of a Party or any person for whose conduct it is responsible or was lawfully in the possession of a Party prior to
          disclosure to it;

   

  		(d)	which was received from a third party without obligation of confidentiality (such Party having acted in good faith and having no reasonable ground to believe that the disclosure is in breach of any duty of
          confidentiality);

   

  		(e)	if and to the extent the other Party has given prior written consent to the disclosure provided that such consent shall not be withheld or delayed in respect of any disclosure to any person who has entered into a
          confidentiality undertaking or agreement of similar nature and scope to that contained in this Clause 10;

   

  		(f)	to Lender providing the Loan and each Buyer;

   

  provided that in respect of (b) and (e) only, the Party who makes such disclosure shall remain liable to the other Party for the compliance of such person
    with the terms of this Clause 10.

   

  	10.4	The restrictions contained in this Clause shall continue to apply after the termination of this Agreement without limit in time.

   

  	11.	RIGHTS OF THIRD PARTIES

   

  Subject to the Buyers being able to enforce their rights as contained herein, no term of this Agreement shall be enforceable, by virtue of the Contracts
    (Rights of Third Parties) Act 1999 or otherwise, by any Person who is not a Party to this Agreement. The consent of any Buyer shall not be required for the variation or termination of this Agreement, even if that variation or termination affects the
    benefit conferred on such Buyer.

   

  	12.	SURVIVAL

   

  Termination or expiry of this Agreement shall be without prejudice to any provision of this Agreement which (either expressly or impliedly) is intended to
    survive such termination or expiry (as the case may be), including without limitation Clauses 9-16 (inclusive).

   

  	13.	COUNTERPARTS

   

  		13.1	This Agreement may be executed in any number of counterparts but shall not be effective until each of the Parties has executed at least one counterpart.

   

  
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  		13.2	Each counterpart shall constitute an original of this Agreement, but all the counterparts together constitute one and the same instrument.

   

  		14.	GOVERNING LAW AND DISPUTES

   

  		14.1	This Agreement and the rights of the Parties shall be governed by and construed in accordance with English law.

   

  		14.2	If any dispute between Buyer Parent and Seller arises as to any matter arising under or out of or in connection with this Agreement, the Parties shall in the first instance attempt to settle the dispute amicably by
          reference of the dispute to the senior management of the Parties for negotiation and resolution.

   

  		14.3	If the dispute remains unresolved within a fourteen (14) days period from the commencement of such negotiation, it shall be referred to arbitration in London in accordance with the Arbitration Act 1996 or any
          statutory modification or re-enactment thereof save to the extent necessary to give effect to the provisions of this Clause.

   

  		14.4	The arbitration shall be conducted in accordance with the London Maritime Arbitrators Association (LMAA) Terms current at the time when the arbitration proceedings are commenced.

   

  		14.5	The arbitration shall be conducted by a single arbitrator appointed by the Chairman of the LMAA and the award of the arbitrator shall be final and binding upon the Parties and judgment on such award may be entered in
          any court or tribunal having jurisdiction thereof.

   

  		14.6	In cases where neither the claim nor any counterclaim exceeds the sum of USD100,000 the arbitration shall be conducted in accordance with the LMAA Small Claims Procedure current at the time when the arbitration
          proceedings are commenced.

   

  		14.7	Notwithstanding the above, the Parties may agree at any time to refer to mediation any difference and/or dispute arising out of or in connection with this Agreement, the SPAs and/or the Construction Contracts.

   

  		14.8	The Buyer Parent agrees that Magni Partners in London and the Seller agrees that Nausch, Hogan & Murray (U.K.) of 11-13 Crosswall London, EC3N 2JY, United Kingdom in London may be used for the purpose of
          accepting service of process in any action, arbitration or proceedings brought against it in England and Wales with respect to this Agreement and that any service on such branch shall be valid service for such purposes.

   

  		14.9	The existence of any arbitration proceedings and its outcome shall be kept confidential by the Parties and not disclosed without the consent of the other Party unless required to be disclosed under any relevant law
          or rules, including any applicable stock exchange rules or regulations.

   

  	15.	SANCTIONS

   

  		15.1	Notwithstanding anything to the contrary in this Agreement, both Parties acknowledge and agree that the Seller shall not be required to perform any work that would otherwise result in a violation of applicable law
          including Trade Laws. “Trade Laws” means all applicable U.S. and EU laws, regulations, and orders imposing trade sanctions on countries, individuals, or entities and/or regulating the export, re-export, import, transfer, disclosure,
          provision, or end use of items. Such laws and regulations include without limitation (as may be amended from time to time): the Export Administration Act; the Export Administration Regulations; the economic sanctions laws, regulations, and
          executive orders enforced by the Office of Foreign Assets Control; the International Emergency Economic Powers Act; the International Traffic in Arms Regulations; the Arms Export Control Act; the Foreign Trade Regulations; U.S. Customs laws and
          regulations; and any trade control laws and regulations administered by a non-U.S. government (except to the extent inconsistent with, or prohibited or penalized by, U.S. law). The Buyer represents and warrants to Seller that the Rig is not
          intended to be used in breach of Trade Laws.

   

  
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  		15.2	In connection with this Agreement, each Party shall comply with trade sanctions and export controls laws and regulations applicable to it (hereinafter, “Applicable Law”). Further, each Party agrees that all
          Applicable Laws shall be complied with in connection with this Agreement, including without limitation all Trade Laws, as defined above. Each Party represents and warrants that it is not on the U.S. government’s list of Specially Designated
          Nationals and blocked persons (“SDN List”) or owned fifty percent (50%) or more, directly or indirectly, in the aggregate or individually by persons or entities on the SDN List.

   

  	16.	INCONSISTENCY OF TERMS

   

  		16.1	In the event of any inconsistency between the terms and conditions of (i) this Agreement, and (ii) the SPAs and/or the Construction Contracts, the terms and conditions of the latter shall prevail, provided always
          that no inconsistency shall be deemed to have arisen, or shall be treated as having arisen, by reason only that matters in the SPAs and/or the Construction Contracts are not specifically addressed in this Agreement, and vice versa.

   

  IN WITNESS WHEREOF, the parties to this Agreement have caused this Agreement to be duly executed on the date first above written.

   

  Signed by

    for and on behalf of

   

  Keppel FELS Limited

   

  
    	[***]	 
	[***]	Signature

  

   

  Signed by

    for and on behalf of

   

  Borr Drilling Limited

   

  
    	[***]	Signature

  

   

  
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  SCHEDULE 1

   

  THE RIGS AND DELIVERY DATES

   

  	Rig	Delivery Date
	First Completed Rig under SPA	October 2019
	Second Completed Rig under SPA	January 2020
	Third Completed Rig under SPA	April 2020
	First Construction Rig under Construction
          Contract	July 2020
	Second Construction Rig under
          Construction Contract	October 2020

   

  
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  SCHEDULE 2

   

  LOAN TERM SHEET

   

  	Borrower:	A single purpose Marshall Islands entity wholly owned by Borr Drilling Limited (the “Buyer Parent”).
	Lender:	Caspian Rigbuilders Pte. Ltd.
	Rig:	As specified in each SPA and/or Construction Agreement
	Rig Purchase Price:	As described in Clause 4.1 of Master Agreement
	Flag:	Panama or such other flag as Borrower may propose, subject to Lenders approval.
	Scheduled Delivery Date:	As described in Schedule 1 of Master Agreement
	Rig Delivery Date:	Actual delivery date to the Borrower by the Shipyard
	Facility Type:	One secured term loan facility (the “Facility”)
	Facility Purpose:	Delivery financing of each Rig, to be disbursed at the Delivery Date
	Currency:	USD
	Facility Amount:	US$86,400,000 per Rig. Each Facility is to be drawn down in one lump sum
	Drawdown Date:	each Rig Delivery Date, subject to all conditions precedent for the loan drawdown being met by the Borrower and the Buyer Parent
	Cancellation:	The Borrower may cancel each Facility prior to the Rig Delivery Date at any time (but not later than 30 days prior to the Rig Delivery
          Date) with 10 days prior written notice to the Lender without any premium or penalty
	Final Maturity Date:	5 years from the Drawdown Date
	Principal Repayment:	[***] on the Final Maturity Date
	Deferred Payment:	An additional sum of US$[***] due with the Principal Repayment on the Final Maturity Date.
	Interest Periods:	3 months unless any other period agreed between the Borrower and the Lender
	Interest Payment:	Until the [***] anniversary of the Drawdown Date, interest shall accrue, be aggregated without compounding, and the Borrower shall pay to the Lender all
          such accrued interest on the [***] anniversary of the Drawdown Date. Thereafter, the Borrower shall pay interest at the end of each Interest Period.

   

  Page 11

  
    
 

  	Interest:	
          LIBOR (USD 3 months) plus Margin, Margin being

           

          ●             [***] p.a. from the Drawdown Date until the 3rd anniversary of the Drawdown Date;

          ●             thereafter, until the 4th anniversary of the Drawdown Date, [***] p.a.;

          ●             thereafter, [***] p.a.

          Interest will be calculated on the basis of the actual number of days elapsed in a year of 360 days

           

        
	Break Costs:	Documented break costs incurred by the Lender to be paid by Borrower
	Documentation:	Each Facility will be made available under a facilities agreement (the “Facility Agreement”) and security and other related
          documents (together with the Facility Agreement, the “Finance Documents”) reasonably satisfactory to both the Lender and the Borrower.
	Security:	
          All amounts owed under and pursuant to each Facility Agreement to be secured by:

           

          (a)          a first priority mortgage over the Rig financed
            by that Facility Agreement,

          (b)          an assignment of earnings, including income
            from any charter of that Rig,

          (c)          an assignment of insurances taken out in
            respect of that Rig;

          (d)          a charge over shares in the Borrower that owns
            that Rig to be executed by the Parent Buyer; and

          (e)          a guarantee and indemnity for the whole of the
            indebtedness of the Borrower which owns that Rig to be executed by the Buyer Parent (“Parent Guarantee”).

           

        
	Voluntary Prepayment:	Allowed at any time without any prepayment fee or penalty, on the Borrower giving not less than 10 days’ prior written notice to the
          Lender, and prepayment, if of part of the Loan, to be of a minimum amount of US$[***] and in higher or multiples thereof
	Mandatory Prepayment:	
          (a)           Mandatory Prepayment - Change of Control 

          If the Buyer Parent ceases to own (directly or indirectly) 100% of the share in the Borrower;

           

          (b)           Mandatory Prepayment - Disposal 

          Upon a disposal of a Rig, the Borrower shall procure that all outstanding amounts under the Facility to which that Rig relates shall be prepaid in
            full on the date on which the sale is completed by delivery of that Rig to the buyer

           

          (c)           Mandatory Prepayment - Total Loss 

          Upon the occurrence of a total loss of a Rig, the Borrower shall procure that all outstanding amounts under the Facility to which the Rig relates
            shall be prepaid in full on the earlier of (i) 180 days from the date of such total loss or (ii) on the date upon which the insurance proceeds are paid by the insurers.

           

                    

           

        

   

   

  
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            (d)         Mandatory Prepayment - Requisition for title 

          
            In the event of a requisition for title of a Rig, the Borrower shall procure that all outstanding amounts under the Facility to which the Rig
              relates shall be prepaid in full within thirty days after such event.

             

            (e)           Illegality

            In the event that it is or will become unlawful in any applicable jurisdiction for the Lender to perform its obligations or to fund or maintain
              its participation, the Lender shall promptly give notice to the Borrower of such illegality, following which the commitment of the Lender will be immediately cancelled and all outstanding amounts under the affected Facility shall be prepaid
              in full.

             

            (f)           Asset coverage ratio

            In the event that any of the yearly valuations of a Rig (referred to in Rig Covenants) shows that the market value of that Rig is less than
              [***]% of outstanding amounts under the relevant  Facility, the Borrower shall either (i) pre-pay that Facility in an amount which results in the outstanding amount under that Facility being more than [***]% of the market value of that Rig,
              or (ii) provide such additional security such that the aggregate value of the additional security and the market value of that Rig will exceed [***]% of the outstanding amounts under that Facility.

             

            Prepayments made under this Mandatory Prepayment provision shall be without any prepayment fee or penalty.

          

        
	
           

           

          Representations / Warranties:

        	
           

          The Borrower will make warranties and representations that are usual and customary for transactions of this nature including, but not limited to
            representations with regard to:

           

          (a)           status 

          (b)           binding obligations 

          (c)           validity, effectiveness and ranking of security 

          (d)           non conflict with other obligations 

          (e)           power and authority 

          (f)            validity and admissibility in evidence 

          (g)           governing law and enforcement 

          (h)           no deduction of tax 

          (i)            no filing or stamp taxes 

          (j)            no default 

          (k)           no misleading information 

          (l)            pari passu ranking 

          (m)          no proceedings pending or threatened 

          (n)           valuations 

          (o)           compliance with laws (including
            anti-corruption laws and sanctions) 

          (p)           environmental laws / claims 

           

        

   

  
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            (q)          financial indebtedness 

            (r)          ownership of secured assets 

            (s)           tax residency 

            (t)           if applicable, FATCA representations 

            (u)          accuracy of financial statements

             

            The Buyer Parent will make warranties and representations that are usual and customary for transactions of this nature including, but not limited to
              representations with regard to:

             

            (a)          status 

            (b)          binding obligations 

            (c)          validity and effectiveness 

            (d)          non conflict with other obligations 

            (e)          power and authority 

            (f)           validity and admissibility in evidence 

            (g)          governing law and enforcement 

            (h)          no deduction of tax 

            (i)           no filing or stamp taxes in relation to
              Parent Guarantee 

            (j)           no default, subject to materiality thresholds
              to be agreed 

            (k)          no misleading information 

            (l)           pan passu ranking in respect of obligations
              under Parent Guarantee 

            (m)         no proceedings pending or threatened, subject
              to carveouts to be agreed 

            (n)          compliance with laws (including
              anti-corruption laws and sanctions) 

            (o)          environmental laws / claims 

            (p)          accuracy of financial statements of the Buyer Parent

          

        
	
           

           

          Information Undertakings:

        	

          Information undertakings usual and customary for a transaction of this nature, including but not limited to:

           

          (a)          Borrower and/or Buyer Parent to provide each of
            the following:

          (i)          as soon as they become available, but in any
            event within 120 days of the end of its financial years the Borrower’s audited un-consolidated financial statements;

          (ii)         as soon as they become available, but in any
            event within 120 days of the end of the Buyer Parent’s financial years, Buyer Parent’s audited consolidated financial statements;

          (iii)        as soon as they become available, but in any
            event within 60 days of the end of its financial half years its unaudited un-consolidated financial statements;

          (iv)        as soon as they become available, but in any event
            within 60 days of the end of the Buyer Parent’s financial half years, the Parent’s unaudited consolidated financial statements;

          (v)         with each set of consolidated financial
            statements, a compliance certificate signed by two directors of the Buyer Parent;

          (vi)        all documents dispatched by the Borrower or the
            Buyer Parent to its shareholders (or any class of them) or its creditors generally;

        

   

  
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          (vii)        details of any material litigation, arbitration
            or administrative proceedings;

          (viii)      such other information regarding the financial
            condition, business and operations of the Borrower and/or the Buyer Parent as the Lender may reasonably request, subject to restrictions at law under the rules of any stock exchange applicable to the Borrower or the Buyer Parent and
            confidentiality undertakings.

           

          (b)         The Borrower and the Buyer Parent shall promptly upon
              the request of the Lender supply such documentation and other evidence as is reasonably requested by Lender to carry out and be satisfied with the results of all necessary “know your customer” or other checks in relation to the Facility;

          (c)         The Borrower shall notify the Lender immediately
            upon becoming aware of any Default, any total loss or requisition, any recommendation or condition or requirement imposed by any insurer or classification society, any arrest / detention, any intended dry-docking, any breach of environmental
            laws, any breach of ISM / ISPS code

        
	General Undertakings:	
          General undertakings from the Borrower to be usual and customary for a transaction of this nature, including but not limited to:

           

          (a)           authorisations 

          (b)           compliance with laws 

          (c)           pari passu ranking 

          (d)          negative pledge on the Borrower, subject to
            carveouts to be agreed 

          (e)          restriction on disposals on the Borrower,
            subject to carveouts to be agreed 

          (f)           restriction on merger save for internal
            reorganization where the Parent remains 

          (g)          no change of business 

          (h)          environmental compliance and claims 

          (i)           restriction on the provision of loans and
            guarantees by Borrower, subject to carveouts to be agreed 

          (j)           restriction on Borrower incurring further
            financial indebtedness, unless subordinated to the Lender’s interest (Borrower only) 

          (k)          payment of dividends and distributions only if
            there is no default under the relevant Facility, including but not limited to the asset coverage ratio 

          (l)           Ranking / validity / preservation of security
            (Borrower only)

           

          General undertakings from the Parent to be usual and customary for a transaction of this nature, including but not limited to:

           

          (a)           authorisations 

          (b)           compliance with laws 

          (c)           pari passu ranking 

          (d)           environmental compliance and claims

        

   

  

  

  
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  	Rig Covenants:	
          Those rig undertakings usual and customary for a transaction of this nature including but not limited to:

           

          (i)           Rig is fully insured against: 

          a)            fire and usual marine risks 

          b)           hull and machinery (including hull interest, and
            business interruption or loss of hire), which shall be in an amount on an agreed value basis at least the greater of (i) [***]% of the market value of each Rig, and (ii) [***]% of the principal amount under the relevant Facility then
            outstanding; 

          c)           war and strikes risks; and 

          d)           full protection and indemnity risks of each Rig
            in accordance with the rules for Mobile Offshore Units of a club that is a member of the International Group of Protection and  Indemnity Associations for a combined single limit which is consistent with the practice of renown and prudent
            drilling contractors. 

          such insurances to be on terms satisfactory to the Lender (with copies of policies, endorsements and/or certificates of entries to be provided to
            the Lender).

           

          The insurances shall name the Borrower, the Lender and the rig manager as named insured, with waiver of subrogation, if agreed by the insurer
            (with Borrower to use all commercially reasonable efforts to procure such waiver), in favour of the Lender, and shall specify the Lender as loss payee. The Borrower shall procure that the insurers issue such letter(s) of undertaking to the
            Lender in a form required by the Lender (which shall be in accordance with customary market practice for insurances of that nature).

           

          The Borrower shall notify the Lender at least 10 days before the expiry of any obligatory insurances and the proposed terms of the renewal, for
            the Lender’s approval. The Borrower shall ensure that all policies are renewed at least 14 days before expiry.

           

          The insurance undertakings shall include undertakings which are usual and customary for a transaction of this nature.

           

          The Lender shall take up mortgagees’ interest insurance in respect to its interest in each Rig, but the premium / costs shall be borne or
            reimbursed by the Borrower.

           

          (ii)         Rig is flagged under the Panama flag and
            registered in the name of the Borrower; consent to request to change of flag not be unreasonably withheld or delayed 

          (iii)        Rig is maintained in good and safe condition and
            state of repair consistent with first class ship ownership and management practice, and so as to maintain each Rig’s classification with a classification society approved by the Lender free from recommendations and conditions.

        
	 	

   

  

  

  
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          (iv)         No material modification to any Rig / no
            removal of material parts, unless for purpose of survey, maintenance, modifications or for operational reasons 

          (v)          Submission to all surveys required by class. 

          (vi)         Borrower shall permit the Lender (acting
            through surveyors or other person appointed by it for that purpose) to board each Rig at all reasonable times to inspect each Rig’s conditions, the cost of all such inspections to be on the account of the Borrower. 

          (vii)        Prevention and release from arrest 

          (viii)       Compliance with laws, including but not limited
            to ISPS, environmental compliance, and sanctions 

          (ix)         No operation in war zones and/or OPA areas
            without acceptable insurance coverage 

          (x)          Borrower to provide the Lender with any
            information which the Lender may request regarding (i) each Rigs, its employment and its position, (ii) the earnings of each Rig; (iii) crewing of each Rig (iv) any expenditure incurred, or which is likely to be incurred in connection with the
            operation, maintenance or repair of each Rig, (iv) any towages and salvages, and (v) compliance with ISM and ISPS code. 

          (xi)          Notice of mortgage 

          (xii)       Technical / commercial manager of each Rig to be
            an entity which is acceptable to the Lender; it being agreed that the Lender accepts any technical/commercial manager which is an affiliate of the Borrower or the Parent Borrower shall put each Rig in possession of any person other than the
            Builder for the purposes of work being done on it in an amount exceed or which is likely to exceed US$5,000,000 

          (xiii)      Borrower to provide yearly valuations of each
            Rig at its own cost, addressed to the lenders and from a shipbroker acceptable to the Lender. Together with each such valuation, Borrower to deliver a compliance certificate attaching a copy of such valuation, and certifying its compliance the
            Asset coverage ratio.

        
	
           

           

          Events of Default:

        	
           

          Events of default usual and customary for a transaction of this nature in respect of the Borrower and the Parent:

           

          (i)            non-payment; 

          (ii)          other breaches, with a grace period of 15 days
            from Lender’s notice to remedy (if such breach is capable of remedy) 

          (iii)          misrepresentation; 

          (iv)          insolvency; 

          (v)          insolvency proceedings; 

          (vi)         creditors’ process; 

          (vii)        unlawfulness and invalidity; 

          (viii)       cessation of business, 

          (ix)          insurance cover (Borrower only); 

          (x)           liens / arrest / detention in relation to any
            Rig (Borrower only) 

          (xi)        repudiation or rescission of agreements by
            Borrower. Repudiation or rescission of agreements by Buyer Parent, subject to materiality carveouts for the Buyer Parent to be agreed; 

           

        

   

  
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            (xii)        material litigation on the Borrower or
              material litigation on the Buyer Parent 

            (xiii)       non-compliance with sanctions 

            (xiv)       financial covenants not satisfied; 

            (xv)       Cross default with other indebtedness of
              Borrower (no carveout for Borrower). Cross default with other indebtedness of Buyer Parent in excess of a materiality threshold to be agreed; 

            (xvi)       Buyer Parent ceases to maintain 100% direct
              ownership interests in the Borrower; 

            (xvii)      Material audit qualifications to the financial
              statements of the Borrower or Buyer Parent; 

            (xviii)     Expropriation of assets in excess of
              USD50,000,000 for Buyer Parent. No carveout for Borrower; 

            (xix)       Security imperiled / flag in jeopardy (Borrower
              only) 

            (xx)        material adverse effect on Borrower. Material
              adverse effect on Buyer Parent to the extent that it affects the Buyer Parent’s ability to perform its obligations under the Parent Guarantee.

            

          

        
	Conditions Precedent:	
          Those conditions precedent usual and customary for a transaction of this nature, all to be in form and substance to the satisfaction of the Lender,
            including but not limited to:

           

          (i)          constitutional documents and corporate authorisations; 

          (ii)          executed Facility Agreement; 

          (iii)        executed Security Documents and perfection of
            security; 

          (iv)        legal opinion from counsel in jurisdiction of
            incorporation of Borrower and Buyer Parent, at the Borrower’s cost 

          (v)          certified copy financial statements (including
            latest audited financial statements of Borrower and Buyer Parent (if Buyer Parent becomes unlisted) 

          (vi)        evidence that all sums then due to the Builder
            (other than the sums to be financed by that Facility) have been paid to the Seller 

          (vii)       evidence that Rig is insured in accordance with
            requirements of that Facility 

          (viii)      evidence of appointment of process agent 

          (ix)        a copy of the building contract and all addenda
            thereto; a builder’s certificate; and a copy of the protocol of delivery duly signed by the shipyard builder and the Borrower 

          (x)         the class confirmation, customary operational
            certificates and classification certificates as the Lender may require 

          (xi)        a certificate of ownership and encumbrances issued by
            the ship register showing that Rig duly registered in the ownership of the Borrower, the mortgage duly recorded against that Rig and that Rig free and clear of all liens and encumbrances of record other than that mortgage;

           

          other documents and evidence reasonably required by the Lender and listed in each Facility Agreement

           

        
	Miscellaneous:	The Agreement will contain provisions relating to, among other things, default interest, market disruption, break costs, tax gross up
          and indemnities (including, for the avoidance of doubt, FATCA (if applicable), set-off, administration and changes in currency.

   

  
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  	Tax Gross Up:	All payments to be made by the Borrower and Buyer Parent will be free and clear of all present and future taxes, unless
          required by law. If any deduction is required, the Borrower will pay an additional amount necessary to ensure that the Lender receives an amount that would otherwise have been received had no such deduction been required.
	Expenses:	The Borrower shall bear all reasonable and documented costs and expenses in connection with the Facility documents
	Governing Law and Jurisdiction:	
          This term sheet and each Facility Agreement will be subject to English Law and to exclusive arbitration in London Maritime Arbitrators Association by one arbitrator

        

   

   

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