Document:

Exhibit

Exhibit 10.1

SECURITIES PURCHASE AGREEMENT
THIS SECURITIES PURCHASE AGREEMENT (the “Agreement”) is made as of the 5th day of December, 2016, by and between MVB Financial Corp. (the “Company”), a corporation organized under the laws of the State of West Virginia, with its principal offices at 301 Virginia Avenue, Fairmont, West Virginia 26554 and the purchaser whose name and address is set forth on the signature page hereof (the “Purchaser”).
IN CONSIDERATION of the mutual covenants contained in this Agreement, the Company and the Purchaser agree as follows:
SECTION 1.Authorization of Sale of the Shares.  Subject to the terms and conditions of the Agreements (as defined below), the Company has authorized the issuance and sale of up to an aggregate of 1,913,044 shares (the “Shares”) of common stock, $1.00 par value per share (the “Common Stock”), of the Company.
SECTION 2.    Agreement to Sell and Purchase the Shares.  At the Closing (as defined in Section 3), the Company will, subject to the terms of this Agreement, issue and sell to the Purchaser and the Purchaser will buy from the Company, upon the terms and conditions hereinafter set forth, the number of Shares set forth on the signature page attached hereto at the purchase price per share of $11.50.  The Company proposes to enter into the same form of securities purchase agreement with certain other investors (the “Other Purchasers”) and expects to complete sales of the Shares to them.  The Purchaser and the Other Purchasers are hereinafter sometimes collectively referred to as the “Purchasers,” and this Agreement and the securities purchase agreements executed by the Other Purchasers are hereinafter sometimes collectively referred to as the “Agreements.” The term “Placement Agent” shall mean Keefe, Bruyette & Woods, Inc.
Notwithstanding the foregoing, nothing in this Agreement shall be construed to permit or require the Purchaser to purchase a number of Shares that, after taking into account all Shares to be issued pursuant to the Agreements, would cause the Purchaser, together with any other person whose Company securities would be aggregated with the Purchaser’s Company securities for purposes of any banking regulation or law, to collectively be deemed to own, control or have the power to vote shares of Common Stock which would represent more than 9.9% of the shares of Common Stock outstanding (the “Ownership Limitation”).  If, but for this sentence, after taking into account all Shares to be issued pursuant to the Agreements, the purchase of Shares at the Closing would otherwise cause the Purchaser to exceed the Ownership Limitation, then the number of Shares to be purchased by the Purchaser hereunder at the Closing shall be automatically reduced by the minimum amount necessary to ensure that the Ownership Limitation is not exceeded by the Purchaser at Closing (in which case the Purchaser’s aggregate purchase price shall be proportionately reduced).

SECTION 3.    Delivery of the Shares at the Closing.  The completion of the purchase and sale of the Shares (the “Closing”) shall occur at the offices of LeClairRyan, 919 East Main Street, 24th Floor, Richmond, Virginia 23219 as soon as practicable and as agreed to by the parties hereto, within seven days following the execution of the Agreements (but no earlier than the first business day after the date of this Agreement), or on such later date or at such different location as the parties shall agree in writing, but not prior to the date that the conditions for Closing set forth below have been satisfied or waived by the appropriate party (the “Closing Date”).
At the Closing, (i) the Company shall deliver to the Purchaser (or its designated custodian per its delivery instructions) one or more stock certificates (or facsimiles or .pdf scanned copies of stock certificates with physical stock certificates to follow) registered in the name of the Purchaser, or in such nominee name(s) as designated by the Purchaser in writing, representing the number of Shares set forth on the signature page attached hereto and bearing an appropriate legend referring to the fact that the Shares were sold in reliance upon the exemption from registration under the Securities Act of 1933, as amended (the “Securities Act”), provided by Section 4(a)(2) thereof and Rule 506 thereunder and (ii) upon receipt of the facsimiles or .pdf scanned copies of stock certificates, the Purchaser shall deliver, in immediately available funds, the full amount of the purchase price for the Shares being purchased hereunder by wire transfer to an account designated by the Company.  For purposes of clarity, the Purchaser shall not be required to wire its aggregate purchase price until it (or its designated custodian per its delivery instructions) confirms receipt of its Shares.  The Company will promptly substitute one or more replacement certificates without the legend at such time as the registration statement filed by the Company pursuant to Section 7.1 hereof (the “Registration Statement”) becomes effective.  The name(s) in which the stock certificates are to be registered are set forth in the Securities Certificate Questionnaire attached hereto as Appendix I.
The Company’s obligation to complete the purchase and sale of the Shares and deliver such stock certificates to the Purchaser at the Closing shall be subject to the following conditions, any one or more of which may be waived by the Company: (a) following the Purchaser’s receipt of its Shares, receipt by the Company of same-day funds in the full amount of the purchase price for the Shares being purchased hereunder; (b) concurrent completion of the purchases and sales under the Agreements with the Other Purchasers; and (c) the accuracy of the representations and warranties made by the Purchasers and the fulfillment of any and all undertakings of the Purchasers prior to the Closing.
The Purchaser’s obligation to accept delivery of such stock certificates and to pay for the Shares evidenced thereby shall be subject to the following conditions:
(i)    each of the representations and warranties of the Company made herein shall be accurate in all material respects as of the date of this Agreement and as of the Closing date, as 

-2-

though made on and as of such date, except for such representations and warranties that speak as of a specific date;
(ii)    the delivery to the Placement Agent on behalf of the Purchaser by Squire Patton Boggs (US) LLP, counsel to the Company, and Spilman Thomas & Battle, PLLC, counsel to the Company with respect to certain matters of West Virginia law, of legal opinions in a form reasonably satisfactory to counsel for the Placement Agent, and the Purchaser shall be expressly permitted to rely on such opinions;
(iii)    receipt by the Purchaser of a certificate executed by the chief executive officer or the chief financial or accounting officer of the Company, dated as of the Closing Date, to the effect that the representations and warranties of the Company set forth herein are true and correct in all material respects (except to the extent that any of such representations and warranties is qualified by materiality or Material Adverse Effect (as defined in Section 4.5 below), in such case, such representations and warranties shall be accurate in all respects) as of the date of this Agreement and as of such Closing Date, as though made on and as of such date, except for such representations and warranties that speak as of a specific date, and that the Company has complied in all material respects with all the agreements and satisfied all the conditions herein on its part to be performed or satisfied on or prior to such Closing Date;
(iv)    receipt by the Purchaser of a certificate executed by the secretary of the Company, dated as of the Closing Date, (a) certifying the resolutions adopted by the Board of Directors of the Company or a duly authorized committee thereof approving the transactions contemplated by this Agreement and the issuance of the Shares, (b) certifying the current versions of the Company’s articles of incorporation and bylaws, each as amended, and (c) certifying as to the signatures and authority of persons signing the this Agreement and the related transaction documents on behalf of the Company;
(v)    the fulfillment in all material respects of those undertakings of the Company to be fulfilled prior to Closing;
(vi)    The Company shall receive at the Closing aggregate gross proceeds from the sale of Shares to all Purchasers of at least $22 million, at a price per share equal to $11.50, and shall simultaneously issue and deliver at the Closing to the Purchasers an aggregate number of Shares equal to such gross proceeds divided by such price per share;
(vii)    The purchase of Shares by the Purchaser shall not (i) cause the Purchaser or any of its affiliates to violate any banking regulation, (ii) require the Purchaser or any of its affiliates to file a prior notice under the Change in Bank Control Act (the “CIBC Act”), or otherwise seek prior approval of any banking regulator, (iii) require the Purchaser or any of its affiliates to become a bank holding company or otherwise serve as a source of strength for the Company or any subsidiary 

-3-

or (iv) cause the Purchaser, together with any other person whose Company securities would be aggregated with the Purchaser’s Company securities for purposes of any banking regulation or law, to collectively be deemed to own, control or have the power to vote securities which would represent more than 9.9% of any class of voting securities of the Company outstanding at such time;
(viii)    since the date hereof, there shall not be any action taken, or any law, rule or regulation enacted, entered, enforced or deemed applicable to the Company or its subsidiaries, the Purchaser (or its affiliates) or the transactions contemplated by this Agreement, by any bank regulatory authority which imposes any restriction or condition on the Company or its subsidiaries or the Purchaser or any of its affiliates (other than such restrictions as are described in any passivity or anti-association commitments, as may be amended from time to time, entered into by the Purchaser) which the Purchaser determines, in its reasonable good faith judgment, is materially and unreasonably burdensome on the Company’s business following the Closing or on the Purchaser (or any of its affiliates) or would reduce the economic benefits of the transactions contemplated by this Agreement to the Purchaser to such a degree that the Purchaser would not have entered into this Agreement had such condition or restriction been known to it on the date hereof (any such condition or restriction, a “Burdensome Condition”), and, for the avoidance of doubt, any requirements to disclose the identities of limited partners, shareholders or non-managing members of the Purchaser or its affiliates or its investment advisers shall be deemed a Burdensome Condition unless otherwise determined by the Purchaser in its sole discretion;
(ix)    the Common Stock (i) shall be designated for listing and quotation on the OTC Markets Group, Inc.’s OTCQB and (ii) shall not have been suspended, as of the Closing Date, by the Securities and Exchange Commission (the “Commission”) or the OTC Markets Group, Inc. from trading on the OTCQB nor shall suspension by the Commission or the OTC Markets Group, Inc. have been threatened, as of the Closing Date, either (A) in writing by the Commission or the OTC Markets Group, Inc. or (B) by falling below the minimum listing maintenance requirements of the OTC Markets Group, Inc.; and
(x)    no Material Adverse Effect (as defined below) shall have occurred since the date of this Agreement.
SECTION 4.    Representations, Warranties and Covenants of the Company.  The Company hereby represents and warrants to, and covenants with, the Purchaser as follows:
4.1    Organization and Qualification.  The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of West Virginia and the Company is duly qualified to do business as a foreign corporation in each jurisdiction in which qualification is required, except where failure to so qualify would not have a Material Adverse Effect.  The Company has corporate power and authority to own, lease and operate its properties and to conduct its business as described in the Company’s SEC Filings (as defined in Section 4.2).  

-4-

The subsidiaries listed on Exhibit A hereto (the “Significant Subsidiaries”) are the Company’s only “significant subsidiaries,” as such term is defined in Rule 405 of the Securities Act and the rules and regulations promulgated thereunder (the “Securities Act Rules and Regulations”).  Each of the Significant Subsidiaries is a direct or indirect wholly owned subsidiary of the Company.  Each of the Significant Subsidiaries is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation or organization and is duly qualified to do business as a foreign corporation in each jurisdiction in which qualification is required, except where failure to so qualify would not have a Material Adverse Effect.  Each of the Significant Subsidiaries has corporate power and authority to own, lease and operate its properties and to conduct its business as described in the company’s SEC Filings.
4.2    Reporting Company; Form S‐3.  The Company is not an “ineligible issuer” (as defined in Rule 405 promulgated under the Securities Act) and is eligible to register the Shares for resale by the Purchaser on a registration statement on Form S‐3 under the Securities Act.  The Company is subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and has filed all reports, schedules, forms, statements and other documents required thereby to be filed since December 31, 2014 (the “SEC Filings”) on a timely basis.
4.3    Authorized Capital Stock.  The Company had duly authorized and validly issued outstanding capitalization as set forth in the SEC Filings as of the dates set forth therein. As of the date of this Agreement, the Company has 8,083,500 shares of its common stock, $1.00 par value per share, issued and outstanding. All of the issued and outstanding shares of the Company’s capital stock have been duly authorized and validly issued, are fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and were not issued in violation of or subject to any preemptive rights or other rights to subscribe for or purchase securities.  Except as disclosed in the SEC Filings, the Company does not have outstanding any options to purchase, or any preemptive rights or other rights to subscribe for or to purchase, any securities or obligations convertible into, or any contracts or commitments to issue or sell, shares of its capital stock or any such options, rights, convertible securities or obligations.  With respect to each of the Significant Subsidiaries (i) all the issued and outstanding shares of each Significant Subsidiary’s capital stock have been duly authorized and validly issued, are fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, were not issued in violation of or subject to any preemptive rights or other rights to subscribe for or purchase securities, and (ii) there are no outstanding options to purchase, or any preemptive rights or other rights to subscribe for or to purchase, any securities or obligations convertible into, or any contracts or commitments to issue or sell, shares of such Significant Subsidiary’s capital stock or any such options, rights, convertible securities or obligations.  There are no securities or instruments issued by or to which the Company is a party containing anti-dilution or similar provisions that will be triggered by the issuance of the Shares.

-5-

4.4    Issuance, Sale and Delivery of the Shares.  The Shares have been duly authorized and, when issued, delivered and paid for in the manner set forth in this Agreement, will be validly issued, fully paid and nonassessable and free and clear of all pledges, liens, restrictions and encumbrances (other than restrictions on transfer under state and/or federal securities laws), and will conform in all material respects to the description thereof set forth or incorporated in the SEC Filings.  No preemptive rights or other rights to subscribe for or purchase any shares of Common Stock of the Company exist with respect to the issuance and sale of the Shares by the Company pursuant to this Agreement.  No stockholder of the Company has any right (which has not been waived or has not expired by reason of lapse of time following notification of the Company’s intention to file the Registration Statement) to require the Company to register the sale of any capital stock owned by such stockholder under the Registration Statement. No further approval or authority of the stockholders or the Board of Directors of the Company will be required for the issuance and sale of the Shares to be sold by the Company as contemplated herein.
4.5    Due Execution, Delivery and Performance of this Agreement.  The Company has full legal right, corporate power and authority to enter into the Agreements and perform the transactions contemplated hereby and thereby.  Each of the Agreements has been duly authorized, executed and delivered by the Company.  Each of the Agreements constitutes a legal, valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, conservatorship and supervisory powers of bank regulatory agencies generally, or other laws of general application relating to or affecting the enforcement of creditors’ rights and the application of equitable principles relating to the availability of remedies, and except as rights to indemnity or contribution, including but not limited to, indemnification provisions set forth in Section 7.3 of this Agreement may be limited by federal or state securities law or the public policy underlying such laws.  The execution, delivery and performance of the Agreements by the Company and the consummation of the transactions herein and therein contemplated will not violate any provision of the articles of incorporation or bylaws of the Company or any organizational documents of any Significant Subsidiary and will not result in the creation of any lien, charge, security interest or encumbrance upon any assets of the Company or any Significant Subsidiary pursuant to the terms or provisions of, and will not conflict with, result in the breach or violation of, or constitute, either by itself or upon notice or the passage of time or both, a default under (A) any agreement, mortgage, deed of trust, lease, franchise, license, indenture, permit or other instrument to which the Company or any Significant Subsidiary is a party or by which the Company or any Significant Subsidiary or their respective properties may be bound or affected and in each case that would have or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect or (B) any statute or any authorization, judgment, decree, order, rule or regulation of any court or any regulatory body, administrative agency or other governmental agency or body applicable to the Company or any Significant Subsidiary or any of their respective properties.  No consent, approval, 

-6-

authorization or other order of any court, regulatory body, administrative agency or other governmental agency or body is required for the execution and delivery of this Agreement or the consummation of the transactions contemplated by this Agreement, except for compliance with the blue sky laws and federal securities laws applicable to the offering of the Shares.  For the purposes of this Agreement, the term “Material Adverse Effect” shall mean any of (i) a material and adverse effect on the legality, validity or enforceability of any document relating to the transactions contemplated hereby, (ii) a material and adverse effect on the results of operations, assets, properties, business, condition (financial or otherwise) or prospects of the Company and its subsidiaries, taken as a whole, or (iii) any adverse impairment to the Company’s ability to perform in any material respect on a timely basis its obligations under any document relating to the transactions contemplated hereby; provided, however, that in determining whether a Material Adverse Effect has occurred, there shall be excluded any effect to the extent resulting from (A) changes, after the date of this Agreement, in general economic, monetary or financial conditions (except to the extent that such change disproportionately adversely affects the Company and its subsidiaries compared to other companies of similar size operating in the same industry in which the Company operates, in which case only the disproportionate effect will be taken into account), (B) changes, after the date of this Agreement, affecting generally the industries or markets in which the Company and its subsidiaries operate (except to the extent that such change disproportionately adversely affects the Company and its subsidiaries compared to other companies of similar size operating in the same industry in which the Company operates, in which case only the disproportionate effect will be taken into account), (C) changes, after the date of this Agreement, in global national or political conditions, including the outbreak or escalation of war or acts of terrorism (except to the extent that such change disproportionately adversely affects the Company and its subsidiaries compared to other companies of similar size operating in the same industry in which the Company operates, in which case only the disproportionate effect will be taken into account), (D) any changes, after the date of this Agreement, in applicable laws or accounting rules or principles, including changes in GAAP (as defined below) (except to the extent that such change disproportionately adversely affects the Company and its subsidiaries compared to other companies of similar size operating in the same industry in which the Company operates, in which case only the disproportionate effect will be taken into account), and (E) the announcement or pendency of the transactions contemplated by this Agreement.
4.6    Accountants.  Dixon Hughes Goodman LLP and S.R. Snodgrass, P.C., each of which has expressed its opinion with respect to the consolidated financial statements contained in the Company’s Annual Report on Form 10‐K for the year ended December 31, 2015, are registered independent public accountants as required by the Securities Act and the Securities Act Rules and Regulations and by the rules of the Public Accounting Oversight Board.
4.7    No Defaults or Consents.  Neither the execution, delivery and performance of the Agreements by the Company nor the consummation of any of the transactions contemplated 

-7-

hereby or thereby (including, without limitation, the issuance and sale by the Company of the Shares) will give rise to a right to terminate or accelerate the due date of any payment due under, or conflict with or result in the breach of any term or provision of, or constitute a default (or an event which with notice or lapse of time or both would constitute a default) under this Agreement, except such defaults that individually or in the aggregate would not cause or have a Material Adverse Effect, or require any consent or waiver under, or result in the execution or imposition of any lien, charge or encumbrance upon any properties or assets of the Company or its subsidiaries pursuant to the terms of, any indenture, mortgage, deed of trust or other agreement or instrument to which the Company or any of its subsidiaries is a party or by which either the Company or its subsidiaries or any of their properties or businesses is bound, or any franchise, license, permit, judgment, decree, order, statute, rule or regulation applicable to the Company or any of its subsidiaries or violate any provision of the articles of incorporation or bylaws of the Company or any of its subsidiaries, except for such consents or waivers which have already been obtained and are in full force and effect.
4.8    Contracts.  The Material Contracts (as defined below) to which the Company or any Significant Subsidiary is a party have been duly and validly authorized, executed and delivered by the Company and/or such Significant Subsidiary and constitute the legal, valid and binding agreements of the Company and/or such Significant Subsidiary, enforceable by and against it in accordance with their respective terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, conservatorship and supervisory powers of bank regulatory agencies generally, or other similar laws relating to enforcement of creditors’ rights generally, and general equitable principles relating to the availability of remedies, and except as rights to indemnity or contribution may be limited by federal or state securities laws and the public policy underlying such laws. “Material Contract” means any contract of the Company that was, or was required to be, filed as an exhibit to the Company’s filings with the Commission pursuant to Item 601 of Regulation S-K.
4.9    No Actions.  There are no legal or governmental actions, suits, proceedings, inquiries or investigations pending or, to the Company’s knowledge, threatened against or affecting the Company or any Significant Subsidiary before or by any court, regulatory body or administrative agency or any other governmental agency or body, domestic, or foreign, which actions, suits, proceedings, inquiries or investigations, individually or in the aggregate, would reasonably be expected to result in a Material Adverse Effect; and no labor disturbance by the employees of the Company exists or, to the Company’s knowledge, is imminent, that would reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor any Significant Subsidiary is a party to or subject to the provisions of any injunction, judgment, decree or order of any court, regulatory body, administrative agency or other governmental agency or body that might have a Material Adverse Effect.

-8-

4.10    Properties.  Each of the Company and its subsidiaries has good and marketable title to all the properties and assets described as owned by it in the Company’s SEC Filings, including in the consolidated financial statements included in the SEC Filings, free and clear of all liens, mortgages, pledges, security interests, claims, restrictions or encumbrances of any kind except (i) those, if any, reflected in the Company’s SEC Filings, including in such consolidated financial statements, or (ii) those that are not material in amount and do not adversely affect the use made and proposed to be made of such property by the Company or its subsidiaries.  Each of the Company and its subsidiaries hold its leased properties under valid and binding leases or subleases, and the Company and each subsidiary owns or leases all such properties as are necessary to its operations as now conducted. 
4.11    No Material Adverse Change.  Since September 30, 2016 (i) there has not occurred any event that has had or would reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to generally accepted accounting principles in the United States (“GAAP”) or required to be disclosed in filings made with the Commission and, (iii) there have been no transactions or agreements entered into by the Company or any of its subsidiaries outside the ordinary course of business which are material with respect to the Company and its subsidiaries considered as one enterprise, (iv) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any Material Contract under which the Company or any of its Significant Subsidiaries is bound or subject, and (v) to the Company’s knowledge, there has not been a material increase in the aggregate dollar amount of: (A) the MVB Bank’s nonperforming loans (including nonaccrual loans and loans 90 days or more past due and still accruing interest) or (B) the reserves or allowances established on the Company’s or MVB Bank’s financial statements with respect thereto.
4.12    Intellectual Property.  Except as set forth on Schedule 4.12, To the Company’s knowledge, the Company and each of its subsidiaries own,  licenses or otherwise possesses all rights to use, all patents, patent rights, inventions, know-how (including trade secrets and other unpatented or unpatentable, proprietary or confidential information, systems, or procedures), trademarks, service marks, trade names, copyrights and other intellectual property rights (collectively, the “Intellectual Property”) necessary for the conduct of its business as currently operated, and neither the Company nor any of its subsidiaries has received any notice of any infringement of or conflict with asserted rights of others with respect to any Intellectual Property necessary for the conduct of its business as currently operated.
4.13    Compliance.  Neither the Company nor any of its subsidiaries is (i) conducting business in violation of applicable laws, rules and regulations of the jurisdictions in 

-9-

which it is conducting business, except where any such violation would not have, individually or in the aggregate, a Material Adverse Effect, (ii) in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any of its subsidiaries under), nor has the Company or any of its subsidiaries received written notice of a claim that it is in default under or that it is in violation of, any material contract, except where such default or violation would not have, individually or in the aggregate, a Material Adverse Effect or (iii) in violation of any order of any court, arbitrator or governmental body having jurisdiction over the Company, its subsidiaries or their respective properties or assets, except where such failure or violation would not have, individually or in the aggregate, a Material Adverse Effect.
4.14    Taxes.  The Company and its Significant Subsidiaries (i) have prepared and filed all foreign, federal, state and local income and all other tax returns, reports and declarations required by any jurisdiction to which it they are subject and such returns, reports and declarations are true, complete and correct in all material respects, (ii) have paid all material taxes and other governmental assessments and charges owed and due by the Company and its Significant Subsidiaries (whether or not shown on any tax return), except those being contested in good faith and with respect to which adequate reserves have been set aside on the books of the Company and its Significant Subsidiaries, (iii) have withheld or collected from each payment made to each of their respective employees, independent contractors, shareholders, creditors and other third parties the amount of all taxes required to be withheld or collected therefrom, and have paid the same to the proper authorized depositories or government authorities and (iv) have set aside on its books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which the above referenced returns, reports or declarations apply.  There are no pending or active tax audits or proceedings or proposed tax deficiencies or other claims for material unpaid taxes asserted with respect to the Company or its Significant Subsidiaries or their respective assets.  There are no liens for taxes (other than for taxes not yet due and payable) upon any of the assets of the Company or its Significant Subsidiaries.  Neither the Company nor any of its Significant Subsidiaries has received notice of any claim made by an authority in any jurisdiction where the Company or any Significant Subsidiary, as applicable, does not file tax returns that the Company or any Significant Subsidiary, as applicable, is or may be subject to taxation by that jurisdiction.
4.15    Transfer Taxes.  On the Closing Date, all stock transfer or other similar taxes (other than income taxes) that are required to be paid in connection with the sale and transfer of the Shares to be sold to the Purchaser hereunder will have been fully paid or provided for by the Company and all laws imposing such taxes will have been fully complied with.
4.16    Investment Company.  The Company is not, and after application of the proceeds of the sale of Shares, will not be, an “investment company” or an “affiliated person” of, or “promoter” or “principal underwriter” for an investment company, within the meaning of the 

-10-

Investment Company Act of 1940, as amended, and the rules and regulations of the Commission promulgated thereunder.
4.17    Offering Materials.  Each of the Company, its directors and officers has not distributed and will not distribute prior to the Closing Date any offering material in connection with the offering and sale of the Shares.  The Company has not in the past nor will it hereafter take any action independent of the Placement Agent to sell, offer for sale or solicit offers to buy any securities of the Company that could result in the initial sale of the Shares not being exempt from the registration requirements of Section 5 of the Securities Act.
4.18    Insurance.  The Company and each subsidiary maintains insurance underwritten by insurers of recognized financial responsibility, of the types and in the amounts that the Company and each subsidiary reasonably believes is adequate for the conduct of its business, including, but not limited to, insurance covering all real and personal property owned or leased by the Company against theft, damage, destruction, acts of vandalism and all other risks customarily insured against, with such deductibles as are customary for companies in the same or similar business, all of which insurance is in full force and effect.  Neither the Company nor any of its subsidiaries has been refused any insurance coverage sought or applied for; and the Company each of its subsidiaries has no reason to believe that they will not be able to renew their existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.
4.19    Additional Information.  The information contained in the following documents, which the Purchaser has had access to through the Commission’s EDGAR system, did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading:
(a)    the Company’s Annual Report on Form 10‐K for the fiscal year ended December 31, 2015;
(b)    the Company’s Quarterly Report on Form 10-Q for the fiscal quarters ended March 31, 2016, June 30, 2016 and September 30, 2016;
(c)    the Company’s Current Reports on Form 8-K filed with the Commission on February 5, 2016, February 19, 2016, March 11, 2016, April 1, 2016, May 17, 2016, May 19, 2016, June 3, 2016, July 1, 2016, August 18, 2016, August 19, 2016, September 19, 2016, September 22, 2016, September 22, 2016 and November 16, 2016;
(d)    the Company’s Definitive Proxy Statement filed with the Commission on April 12, 2016; and

-11-

(e)    all other documents, if any, filed by the Company with the Commission since December 31, 2015 pursuant to the reporting requirements of the Exchange Act.
4.20    SEC Filings.  Each of the Company’s SEC Filings, and any document attached or incorporated by reference as an exhibit thereto, at the time it became effective or was filed with the Commission, as the case may be, complied in all material respects with the requirements of the Exchange Act, as applicable, and the rules and regulations of the Commission thereunder (the “Exchange Act Rules and Regulations” and, together with the Securities Act Rules and Regulations, the “Rules and Regulations”).
4.21    Bad Actor.  None of the Company nor any predecessor entity, nor, to the Company’s knowledge, any affiliated issuer, director, general partner, managing member, executive officer or other officer of the Company participating in the offering of the Shares, any beneficial owner of 20% or more of the Company’s outstanding voting equity securities calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the Securities Act) connected with the Company in any capacity at the time of sale (each, a “Company Covered Person” and, together, “Company Covered Persons”) is subject to any of the “Bad Actor” disqualifications described in Rule 506(d)(1)(i) to (viii) under the Securities Act (a “Disqualification Event”), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3) under the Securities Act.  The Company has exercised reasonable care to determine whether any Company Covered Person is subject to a Disqualification Event.  The Company has complied, to the extent applicable, with its disclosure obligations set forth in Rule 506(e) under the Securities Act, and the Company has furnished to the Placement Agent and the Purchaser a copy of any disclosures provided thereunder.  The Company will notify the Placement Agent and the Purchaser in writing, prior to the Closing Date, if any, of any Disqualification Event relating to any Company Covered Person not previously disclosed to the Placement Agent and the Purchaser in accordance with this Section.
4.22    Price of Common Stock.  The Company has not taken, and will not take, directly or indirectly, any action designed to cause or result in, or that has constituted or that might reasonably be expected to constitute, the stabilization or manipulation of the price of the shares of the Common Stock to facilitate the sale or resale of the Shares.
4.23    Non-Public Information.  Other than the terms of the transactions contemplated by this Agreement, all of which will be disclosed by the Company in the Press Release as contemplated by Section 4.48 hereof, the Company confirms that neither it nor any of its officers or directors nor any other person acting on its or their behalf has provided, and it has not authorized the Placement Agent to provide, the Purchaser or its respective agents or counsel with any information that it believes constitutes or could reasonably be expected to constitute material, non-public information.  The Company understands and confirms that the Purchaser will rely on the foregoing representations in effecting transactions in securities of the Company.

-12-

4.24    Related Party Transactions.  No transaction has occurred between or among the Company, on the one hand, and its affiliates, officers or directors on the other hand, that is required to have been described under applicable securities laws in its Exchange Act filings and is not so described in such filings.
4.25    Off-Balance Sheet Arrangements.  There is no transaction, arrangement or other relationship between the Company and an unconsolidated or other off-balance sheet entity that is required to be disclosed by the Company in its Exchange Act filings and is not so disclosed and that would be reasonably likely to have a Material Adverse Effect.  There are no such transactions, arrangements or other relationships with the Company that may create contingencies or liabilities that are not otherwise disclosed by the Company in its Exchange Act filings.
4.26    Governmental Licenses, Permits, Etc.  Except as has not and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, the Company and its subsidiaries possess such permits, licenses, approvals, consents and other authorizations (collectively, “Governmental Licenses”) issued by the appropriate federal, state, local or foreign regulatory agencies or bodies necessary to conduct the business now operated by them. The Company and its subsidiaries are in compliance with the terms and conditions of all such Governmental Licenses, except where the failure so to comply would not, singly or in the aggregate, have or reasonably be expected to have a Material Adverse Effect. All of the Governmental Licenses are valid and in full force and effect, except where the invalidity of such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect. Neither the Company nor any of its subsidiaries has received any notice of proceedings relating to the revocation or modification of any such Governmental Licenses which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would result in or would reasonably be expected to result in a Material Adverse Effect.  Neither the Company nor any of its subsidiaries has failed to file with applicable regulatory authorities any statement, report, information or form required by any applicable law, regulation or order, except where the failure to be so in compliance would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect, all such filings were in material compliance with applicable laws when filed and no material deficiencies have been asserted by any regulatory commission, agency or authority with respect to any such filings or submissions.
4.27    Financial Statements.  The consolidated financial statements of the Company and the related notes and schedules thereto included in its Exchange Act filings since December 31, 2015 (i) comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing and (ii) fairly present the financial position, results of operations, stockholders’ equity and cash flows of the Company and its consolidated subsidiaries at the dates and for the periods specified therein.  

-13-

Such financial statements and the related notes and schedules thereto have been prepared in accordance with GAAP consistently applied throughout the periods involved (except as otherwise noted therein) and all adjustments necessary for a fair presentation of results for such periods have been made; provided, however, that the unaudited financial statements are subject to normal year-end audit adjustments (which are not expected to be material, either individually or in the aggregate) and do not contain all footnotes required under GAAP. 
4.28    Bank Holding Company Act.  The Company is duly registered as a financial holding company under the Bank Holding Company Act of 1956, as amended (the “BHC Act”).  The Company’s banking subsidiary, MVB Bank, Inc. (“MVB Bank”), holds the requisite authority from the West Virginia Division of Financial Institutions (the “WVDFI”) to do business as state chartered bank under the laws of West Virginia.  The Company and each Significant Subsidiary is in compliance in all material respects with all laws and regulations administered by the WVDFI, the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”), the Federal Deposit Insurance Corporation (the “FDIC”) and any other federal and state authorities (together with the WVDFI, the Federal Reserve Board and the FDIC, the “Bank Regulatory Authorities”) with jurisdiction over the Company and each Significant Subsidiary, except for failures to be so in compliance that would not, individually or in the aggregate, have or reasonably be expected to have a Material Adverse Effect.
4.29    Deposit Accounts.  The deposit accounts of MVB Bank are insured up to the maximum amount provided by the FDIC, MVB Bank has paid all premiums and assessments required by the FDIC and the regulations promulgated by the FDIC, and no proceedings for the modification, termination or revocation of any such insurance are pending or threatened. 
4.30    No Restrictions on Subsidiaries.  No Significant Subsidiary of the Company is currently prohibited, directly or indirectly, by any Bank Regulatory Authority (other than orders applicable to bank holding companies and their subsidiaries generally), or any agreement or other instrument to which it is a party or is subject, from paying any dividends to the Company, from making any other distribution on such Significant Subsidiary’s capital stock, from repaying to the Company any loans or advances to such Significant Subsidiary from the Company or from transferring any of such Significant Subsidiary’s properties or assets to the Company or any other Subsidiary of the Company. 
4.31    Regulatory Matters.  Except as otherwise disclosed in the Company’s SEC Filings, neither the Company nor any of its subsidiaries is subject or is party to, or has received any notice or advice that any of them may become subject or party to any investigation with respect to, any corrective, suspension or cease-and-desist order, agreement, consent agreement, memorandum of understanding or other regulatory enforcement action, proceeding or order with or by, or is a party to any commitment letter or similar undertaking to, or is subject to any directive by, or has been a recipient of any supervisory letter from, or has adopted any board resolutions at the request 

-14-

of, any agency, court or other governmental body, domestic or foreign (each, a “Governmental Entity”), that restricts in any material respect the conduct of their business or that in any manner relates to their capital adequacy (each, a “Regulatory Agreement”), nor has the Company or any of its subsidiaries been advised by any Governmental Entity that it is considering issuing or requesting any such Regulatory Agreement.
4.32    SEC Registration; OTC Compliance.  The Company’s Common Stock is registered pursuant to Section 12(b) of the Exchange Act, and the Company has taken no action designed to terminate the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration. The offer and sale of the Shares complies with all of the rules and regulations of the OTC Markets Group, Inc.  The Company is, and has no reason  to believe that it will not in the foreseeable future continue to be, in compliance in all material respects with the listing and maintenance requirements for continued trading of the Common Stock on the OTC Markets Group, Inc.’s OTCQB.  The Company will use its reasonable best efforts to list the Shares for quotation on the OTC Markets Group, Inc.’s OTCQB and maintain the listing of the Common Stock on the OTC Markets Group, Inc.’s OTCQB or a national securities exchange.
4.33    Internal Accounting Controls.      The Company maintains a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorization; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences.  The Company maintains internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP.  The Company has disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms.  The Company is otherwise in compliance in all material respects with all applicable provisions of the Sarbanes-Oxley Act of 2002, as amended and the rules and regulations promulgated thereunder.
4.34    Foreign Corrupt Practices.  Neither the Company, nor any Significant Subsidiary, nor, to the knowledge of the Company, any director, officer, agent, employee or other person acting on behalf of the Company or any Significant Subsidiary has, in the course of its actions for, or on behalf of, the Company (i) used any corporate funds for any unlawful contribution, gift, 

-15-

entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.
4.35    ERISA.  The Company and each Significant Subsidiary is in compliance in all material respects with all presently applicable provisions of the Employee Retirement Income Security Act of 1974, as amended, including the regulations and published interpretations thereunder (herein called “ERISA”); no “reportable event” (as defined in ERISA), other than those events as to which the thirty-day notice period is waived, has occurred with respect to any “pension plan” (as defined in ERISA) for which the Company or any Significant Subsidiary would have any material liability; the Company and each Significant Subsidiary has not incurred and does not reasonably expect to incur liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any “pension plan”; or (ii) Sections 412 or 4971 of the Internal Revenue Code of 1986, as amended, including the regulations and published interpretations thereunder (the “Code”); and each “Pension Plan” for which the Company and each Significant Subsidiary would have liability that is intended to be qualified under Section 401(a) of the Code is so qualified in all material respects and nothing has occurred, whether by action or by failure to act, which would reasonably be expected to result in the loss of such qualification.
4.36    Environmental Matters.  There has been no material storage, disposal, generation, manufacture, transportation, handling or treatment of toxic wastes, hazardous wastes or hazardous substances by the Company or to its knowledge, any of its subsidiaries (or, to the knowledge of the Company, any of their predecessors in interest) at, upon or from any of the property now or previously owned or leased by the Company or any of its subsidiaries in material violation of any applicable law, ordinance, rule, regulation, order, judgment, decree or permit or that would require material remedial action under any applicable law, ordinance, rule, regulation, order, judgment, decree or permit; there has been no material spill, discharge, leak, emission, injection, escape, dumping or release of any kind into such property or into the environment surrounding such property of any toxic wastes, medical wastes, solid wastes, hazardous wastes or hazardous substances due to or caused by the Company or any of its subsidiaries or with respect to which the Company or any of its subsidiaries have knowledge; the terms “hazardous wastes”, “toxic wastes”, “hazardous substances”, and “medical wastes” shall have the meanings specified in any applicable local, state, federal and foreign laws or regulations with respect to environmental protection.
4.37    Integration; Other Issuances of Shares.  Neither the Company nor its subsidiaries or any affiliates, nor any person acting on its or their behalf, has offered or issued any shares of Common Stock or shares of any series of preferred stock or other securities or instruments convertible into, exchangeable for or otherwise entitling the holder thereof to acquire shares of 

-16-

Common Stock which would be integrated with the sale of the Shares to the Purchaser for purposes of the Securities Act or of any applicable stockholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated, nor will the Company or its subsidiaries or affiliates take any action or steps that would require registration of the Shares offered hereby under the Securities Act (except as contemplated by this Agreement) or cause the offering of the Shares to be integrated with other securities offerings.  Assuming the accuracy of the representations and warranties of Purchasers, the offer and sale of the Shares by the Company to the Purchasers pursuant to the Agreements will be exempt from the registration requirements of the Securities Act.  Neither the Company nor any person acting on its behalf has engaged or will engage in any form of general solicitation or general advertising (within the meaning of Regulation D under the Securities Act) in connection with any offer or sale of the Shares.
4.38    Rights Agreements.  The Company has not adopted any stockholder rights plan or similar arrangement relating to accumulations of beneficial ownership of Common Stock or a change in control of the Company.  
4.39    OFAC.  Neither the Company nor any subsidiary nor, to the Company’s knowledge, any director, officer, agent, employee, affiliate or person acting on behalf of the Company or any subsidiary is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company will not knowingly, directly or indirectly, use the proceeds of the sale of the Shares, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, towards any sales or operations in any country sanctioned by OFAC or for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC.
4.40    Money Laundering Laws.  The operations of each of the Company and any subsidiary are and have been conducted at all times in material compliance with the money laundering statutes of applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any applicable governmental agency (collectively, the “Money Laundering Laws”) and to the Company’s knowledge, no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company and/or any subsidiary with respect to the Money Laundering Laws is pending or threatened. 
4.41    Risk Management Instruments.  Except as has not or would not reasonably be expected to have a Material Adverse Effect, since January 1, 2015, all material derivative instruments, including, swaps, caps, floors and option agreements, whether entered into for the Company’s own account, or for the account of one or more of its subsidiaries, were entered into (A) only in the ordinary course of business, (B) in accordance with prudent practices and in all material respects with all applicable laws, rules, regulations and regulatory policies and (C) with 

-17-

counterparties believed to be financially responsible at the time; and each of them constitutes the valid and legally binding obligation of the Company or one of its subsidiaries, enforceable in accordance with its terms. Neither the Company nor any of its subsidiaries, nor, to the knowledge of the Company, any other party thereto, is in breach of any of its material obligations under any such agreement or arrangement. 
4.42    Compliance with Certain Banking Regulations.  The Company has no knowledge of any facts and circumstances, and has no reason to believe that any facts or circumstances exist, that would cause MVB Bank:  (A) to be deemed not to be in satisfactory compliance with the Community Reinvestment Act (“CRA”) and the regulations promulgated thereunder or to be assigned a CRA rating by federal or state banking regulators of lower than “satisfactory”; (B) to be deemed to be operating in violation, in any material respect, of the Bank Secrecy Act of 1970 (or otherwise known as the “Currency and Foreign Transactions Reporting Act”), the USA Patriot Act (or otherwise known as “Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001”), any order issued with respect to anti-money laundering by OFAC or any other anti-money laundering statute, rule or regulation; or (C) to be deemed not to be in satisfactory compliance, in any material respect, with all applicable privacy of customer information requirements contained in any federal and state privacy laws and regulations as well as the provisions of all information security programs adopted by MVB Bank.
4.43    Reports, Regulations and Statements.  Since January 1, 2014, the Company and its subsidiaries have filed all material reports, registrations and statements, together with any required amendments thereto, that it was required to file with the Bank Regulatory Authorities, and any other applicable federal or state securities or banking authorities.  All such reports and statements filed with any such regulatory body or authority are collectively referred to herein as the “Company Reports.”  All such Company Reports were filed on a timely basis or the Company or the applicable subsidiary, as applicable, received a valid extension of such time of filing and has filed any such Company Reports prior to the expiration of any such extension.  As of their respective dates, the Company Reports complied as to form in all material respects with all the rules and regulations promulgated by the Bank Regulatory Authorities and any other applicable federal or state securities or banking authorities, as the case may be. 
4.44    Mortgage Banking Business.  Except as has not had and would not reasonably be expected to result in a Material Adverse Effect: (A) each of the  Company’s subsidiaries has complied with, and all documentation in connection with the origination, processing, underwriting and credit approval of any mortgage loan originated, purchased or serviced by each of the  Company’s subsidiaries has satisfied, (1) all applicable federal, state and local laws, rules and regulations with respect to the origination, insuring, purchase, sale, pooling, servicing, subservicing, or filing of claims in connection with mortgage loans, including all laws relating to real estate settlement 

-18-

procedures, consumer credit protection, truth in lending laws, usury limitations, fair housing, transfers of servicing, collection practices, equal credit opportunity and adjustable rate mortgages, (2) the responsibilities and obligations relating to mortgage loans set forth in any agreement between the subsidiary and any Agency, Loan Investor or Insurer (each as defined below), (3) the applicable rules, regulations, guidelines, handbooks and other requirements of any Agency, Loan Investor or Insurer and (4) the terms and provisions of any mortgage or other collateral documents and other loan documents with respect to each mortgage loan; and (B) No Agency, Loan Investor or Insurer has (1) claimed in writing that any of the Company’s subsidiaries has violated or has not complied with the applicable underwriting standards with respect to mortgage loans sold by MVB Bank or any of the Company’s other subsidiaries to a Loan Investor or Agency, or with respect to any sale of mortgage servicing rights to a Loan Investor, (2) imposed in writing restrictions on the activities (including commitment authority) of MVB Bank or any of the Company’s other subsidiaries or (3) indicated in writing to MVB Bank or any of the Company’s other subsidiaries that it has terminated or intends to terminate its relationship with MVB Bank or any of the Company’s other subsidiaries for poor performance, poor loan quality or concern with respect to the compliance with laws by MVB Bank or any of the Company’s other subsidiaries.
For purposes of this Section 4.44:  (A) “Agency” means the Federal Housing Administration, the Federal Home Loan Mortgage Corporation, the Farmers Home Administration (now known as Rural Housing and Community Development Services), the Federal National Mortgage Association, the United States Department of Veterans’ Affairs, the Rural Housing Service of the U.S. Department of Agriculture or any other federal or state agency with authority to (1) determine any investment, origination, lending or servicing requirements with regard to mortgage loans originated, purchased or serviced by MVB Bank or any of the Company’s other subsidiaries or (2) originate, purchase, or service mortgage loans, or otherwise promote mortgage lending, including state and local housing finance authorities; (B) “Loan Investor” means any person (including an Agency) having a beneficial interest in any mortgage loan originated, purchased or serviced by MVB Bank or any of the Company’s other subsidiaries or a security backed by or representing an interest in any such mortgage loan; and (C) “Insurer” means a person who insures or guarantees for the benefit of the mortgagee all or any portion of the risk of loss upon borrower default on any of the mortgage loans originated, purchased or serviced by MVB Bank or any of the Company’s other subsidiaries, including the Federal Housing Administration, the United States Department of Veterans’ Affairs, the Rural Housing Service of the U.S. Department of Agriculture and any private mortgage insurer, and providers of hazard, title or other insurance with respect to such mortgage loans or the related collateral.
4.45    Shell Company Status. The Company is not, and has never been, an issuer identified in Rule 144(i)(1).

-19-

4.46    Regulatory Capitalization. As of the date hereof, MVB Bank met or exceeded the standards necessary to be considered “well capitalized” under the FDIC’s prompt corrective action regulations and as of such date, the Company is “well capitalized” for purposes of the Federal Reserve Board’s capital adequacy guidelines.
4.47    Use of Proceeds.  The net proceeds received in connection with the Agreemnts shall be used by the Company for general corporate purposes. A portion of the net proceeds of the Offering may be used to redeem the preferred stock issued to the United States Department of Treasury in connection with the Company’s participation in the Small Business Lending Fund. 
4.48    Securities Laws Disclosure; Publicity.  The Company shall, by 5:00 p.m., New York City time, on the second (2nd) business day immediately following the date of this Agreement, issue one or more press releases (collectively, the “Press Release”) reasonably acceptable to the Purchaser disclosing all material terms of the transactions contemplated hereby and any other material, nonpublic information that the Company may have provided the Purchaser at any time prior to the filing of the Press Release.  On or before 5:00 p.m., New York City time, on the second (2nd) business day immediately following the date of this Agreement, the Company will file a Current Report on Form 8-K with the Commission describing the terms of the Agreements (and including as an exhibit to such Current Report on Form 8-K a form of this Agreement). If, following public disclosure of the transactions contemplated hereby, this Agreement terminates prior to Closing, the Company shall issue a press release disclosing such termination by 9:00 a.m., New York City time, on the first business day following the date of such termination.  Notwithstanding the foregoing, the Company shall not publicly disclose the name of the Purchaser or any affiliate or investment adviser of the Purchaser, or include the name of the Purchaser or any affiliate or investment adviser of the Purchaser in any press release or in any filing with the Commission (other than the Registration Statement) or any regulatory agency or trading market, without the prior written consent of the Purchaser, except (i) as required by the federal securities law in connection with the Registration Statement and (ii) to the extent such disclosure is required by law, at the request of the staff of the Commission or regulatory agency or under trading market regulations, in which case the Company shall provide the Purchaser with prior written notice of such disclosure permitted under this subclause (ii).  From and after the issuance of the Press Release, the Purchaser shall not be in possession of any material, non-public information received from the Company, any subsidiary of the Company or any of their respective officers, directors or employees or the Placement Agent.
SECTION 5.    Representations, Warranties and Covenants of the Purchaser.  The Purchaser represents and warrants to, and covenants with, the Company that: 
5.1    Experience.  (i) The Purchaser is knowledgeable, sophisticated and experienced in financial and business matters, in making, and is qualified to make, decisions with 

-20-

respect to investments in shares representing an investment decision like that involved in the purchase of the Shares, including investments in securities issued by the Company and comparable entities, has the ability to bear the economic risks of an investment in the Shares and has reviewed carefully the Company’s SEC Filings and has requested, received, reviewed and considered all information it deems relevant in making an informed decision to purchase the Shares; (ii) the Purchaser is acquiring the number of Shares set forth on the signature page attached hereto in the ordinary course of its business and for its own account for investment only and with no present intention of distributing any of such Shares or any arrangement or understanding with any other persons regarding the distribution of such Shares (this representation and warranty not limiting the Purchaser’s right to sell pursuant to the Registration Statement or in compliance with the Securities Act and the Rules and Regulations, or, other than with respect to any claims arising out of a breach of this representation and warranty, the Purchaser’s right to indemnification under Section 7.3); (iii) the Purchaser will not, directly or indirectly, offer, sell, pledge, transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of the Shares, nor will the Purchaser engage in any short sale that results in a disposition of any of the Shares by the Purchaser, except in compliance with the Securities Act and the Rules and Regulations and any applicable state securities laws; (iv) the Purchaser has completed or caused to be completed the Registration Statement Questionnaire attached hereto as part of Appendix I, for use in preparation of the Registration Statement, and the answers thereto are true and correct as of the date hereof and will be true and correct as of the filing date of the Registration Statement and the Purchaser will, upon due inquiry from the Company, notify the Company of any material change in any such information provided in the Registration Statement Questionnaire until such time as the Purchaser has sold all of its Shares or until the Company is no longer required to keep the Registration Statement effective; (v) the Purchaser has, in connection with its decision to purchase the number of Shares set forth on the signature page attached hereto, relied solely upon the Company’s SEC Filings, including the documents incorporated by reference therein, and the representations and warranties of the Company contained herein, and has not relied on the Placement Agent or on any statements or other information provided by the Placement Agent concerning the Company or the terms of this offering; (vi) the Purchaser has had an opportunity to discuss this investment with representatives of the Company and ask questions of them; and (vii) the Purchaser is an “accredited investor” within the meaning of Rule 501(a) of Regulation D promulgated under the Securities Act.
5.2    Reliance on Exemptions.  The Purchaser understands that the Shares are being offered and sold to it in reliance upon specific exemptions from the registration requirements of the Securities Act, the Rules and Regulations and state securities laws and that the Company is relying upon the truth and accuracy of, and the Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of the Purchaser to acquire the Shares.  If any of the representations deemed to have been made by it by its purchase of the 

-21-

Shares are no longer accurate prior to Closing, the Purchaser shall promptly notify the Company and the Placement Agent.  If the Purchaser is acquiring the Shares as a fiduciary or agent for one or more investor accounts, it represents that it has sole investment discretion with respect to each such account and it has full power to make the foregoing representations, acknowledgements and agreements on behalf of such account. 
5.3    No Reliance on Placement Agent.  The Purchaser acknowledges that the Placement Agent and its directors, officers, employees, representatives and controlling persons have no responsibility for making any independent investigation of the information contained in the Company’s SEC Filings and make no representation or warranty to the Purchaser, express or implied, with respect to the Company or the Shares or the accuracy, completeness or adequacy of the Company’s SEC Filings or any other publicly available information, nor shall any of the foregoing persons be liable for any loss or damages of any kind resulting from the use of the information contained therein or otherwise supplied to the Purchaser.
5.4    Confidentiality.  The Purchaser covenants that until such time as the transactions contemplated by this Agreement are required to be publicly disclosed by the Company as described in Section 4.48, the Purchaser will maintain the confidentiality of the existence and terms of this transaction.  The Purchaser understands that the federal securities laws impose restrictions on trading based on information regarding this offering until such information is publicly disclosed.
5.5    Investment Decision.  The Purchaser understands that nothing in the Agreement or any other materials presented to the Purchaser in connection with the purchase and sale of the Shares constitutes legal, tax or investment advice.  The Purchaser has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its purchase of the Shares.
5.6    Risk of Loss.  The Purchaser understands that its investment in the Shares involves a significant degree of risk, including a risk of total loss of the Purchaser’s investment, and the Purchaser has full cognizance of and understands all of the risk factors related to the Purchaser’s purchase of the Shares.  The Purchaser understands that no representation is being made as to the future value or market price of the Common Stock.
5.7    Legend.  The Purchaser understands that, until such time as the Registration Statement has been declared effective or the Shares may be sold pursuant to Rule 144 under the Securities Act without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Shares will bear a restrictive legend in substantially the following form:

-22-

“THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.  THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.”
5.8    Stop Transfer.  The certificates representing the Shares will be subject to a stop transfer order with the Company’s transfer agent that restricts the transfer of such shares except upon receipt by the transfer agent of a written confirmation, in form and substance reasonably satisfactory to the Company, from the Purchaser to the effect that (A) the Shares have been sold in accordance with the Registration Statement or otherwise in accordance with the Securities Act, including, without limitation, pursuant to Rule 144 thereunder, and (B) in the case of a transfer pursuant to the Registration Statement, the prospectus delivery requirement effectively has been satisfied.  At such time as the Shares are no longer required to bear a restrictive legend, the Company agrees that it will, no later than five business days after delivery by the Purchaser to the Company or its transfer agent of a certificate (in the case of a transfer, in the proper form for transfer) representing Shares issued with the foregoing restrictive legend, deliver or cause to be delivered to the Purchaser a certificate representing such Shares that is free from all restrictive and other legends.
5.9    Residency.  The Purchaser’s principal executive offices are in the jurisdiction set forth immediately below the Purchaser’s name on the signature pages hereto.
5.10    Public Sale or Distribution.  The Purchaser hereby covenants with the Company not to make any sale of the Shares under the Registration Statement without complying with the provisions of this Agreement and without effectively causing the prospectus delivery requirement under the Securities Act to be satisfied (whether physically or through compliance with Rule 172 under the Securities Act or any similar rule), and the Purchaser acknowledges and agrees that such Shares are not transferable on the books of the Company unless the certificate submitted to the transfer agent evidencing the Shares are accompanied by written confirmation, in form and substance reasonably satisfactory to the Company, from the Purchaser to the effect that (A) the Shares have been sold in accordance with the Registration Statement or otherwise in accordance with the Securities Act, including, without limitation, pursuant to Rule 144 thereunder, and (B) in the case of a transfer pursuant to the Registration Statement, the prospectus delivery requirement 

-23-

effectively has been satisfied.  The Purchaser acknowledges that there may occasionally be times when the Company must suspend the use of the prospectus (the “Prospectus”) forming a part of the Registration Statement (a “Suspension”) until such time as an amendment to the Registration Statement has been filed by the Company and declared effective by the Commission, or until such time as the Company has filed an appropriate report with the Commission pursuant to the Exchange Act.  Without the Company’s prior written consent, which consent shall not unreasonably be withheld or delayed, the Purchaser shall not use any written materials to offer the Shares for resale other than the Prospectus, including any “free writing prospectus” as defined in Rule 405 under the Securities Act.  The Purchaser covenants that it will not sell any Shares pursuant to said Prospectus during the period commencing at the time when Company gives the Purchaser written notice of the suspension of the use of said Prospectus and ending at the time when the Company gives the Purchaser written notice that the Purchaser may thereafter effect sales pursuant to said Prospectus.  Notwithstanding the foregoing, the Company agrees that no Suspension shall be for a period of longer than 60 consecutive days, and aggregate Suspensions in any 365-day period shall not be for a period longer than 90 days in the aggregate.
5.11    Organization; Validity; Enforcements.  The Purchaser further represents and warrants to, and covenants with, the Company that (i) the Purchaser has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated hereby and has taken all necessary action to authorize the execution, delivery and performance of this Agreement, (ii) the making and performance of this Agreement by the Purchaser and the consummation of the transactions herein contemplated will not violate any provision of the organizational documents of the Purchaser or conflict with, result in the breach or violation of, or constitute, either by itself or upon notice or the passage of time or both, a default under any material agreement, mortgage, deed of trust, lease, franchise, license, indenture, permit or other instrument to which the Purchaser is a party or, any statute or any authorization, judgment, decree, order, rule or regulation of any court or any regulatory body, administrative agency or other governmental agency or body applicable to the Purchaser, (iii) assuming the accuracy of the representations and warranties of the Company in the Agreements and the performance of the agreements and covenants of the Company contained in the Agreements, no consent, approval, authorization or other order of any court, regulatory body, administrative agency or other governmental agency or body is required on the part of the Purchaser for the execution and delivery of this Agreement or the consummation of the transactions contemplated by this Agreement, (iv) upon the execution and delivery of this Agreement, this Agreement shall constitute a legal, valid and binding obligation of the Purchaser, enforceable in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application relating to or the enforcement of creditor’s rights and the application of equitable principles relating to the availability of remedies, and except as rights to indemnity or contribution, including, but not limited to, the indemnification provisions set forth in Section 7.3 of this Agreement, may be limited by 

-24-

federal or state securities laws or the public policy underlying such laws and (v) there is not in effect any order enjoining or restraining the Purchaser from entering into or engaging in any of the transactions contemplated by this Agreement.
5.12    Short Sales.  Since November 1, 2016, the Purchaser has not taken, and prior to the public announcement of the transaction after the Closing the Purchaser shall not take, any action that has caused or will cause the Purchaser to have, directly or indirectly, sold or agreed to sell any shares of Common Stock, effected any short sale, whether or not against the box, established any “put equivalent position” (as defined in Rule 16a-1(h) under the Exchange Act with respect to the Common Stock, granted any other right (including, without limitation, any put or call option) with respect to the Common Stock or with respect to any security that includes, relates to or derived any significant part of its value from the Common Stock.  Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Shares covered by this Agreement.
SECTION 6.    Survival of Agreements; Non-Survival of Company Representations and Warranties.  Notwithstanding any investigation made by any party to this Agreement or by the Placement Agent, all covenants and agreements made by the Company and the Purchaser herein and in the certificates for the Shares delivered pursuant hereto shall survive the execution of this Agreement, the delivery to the Purchaser of the Shares being purchased and the payment therefor.  Each Purchaser shall be responsible only for its own representations and warranties, agreements and covenants hereunder.  The representations and warranties made by the Company and the Purchaser herein and in the certificates for the Shares delivered pursuant hereto shall survive for a period of one year following the later of the execution of this Agreement or the delivery to the Purchaser of the Shares being purchased and the payment therefor.
SECTION 7.    Registration of the Shares and Compliance with the Securities Act.
7.1    Registration Procedures and Expenses.  The Company shall:
(a)    as soon as practicable, but in no event later than thirty (30) days following the Closing Date (the “Filing Deadline”), prepare and file with the Commission the Registration Statement on Form S‐3 relating to the resale of the Shares by the Purchaser and the Other Purchasers from time to time on the facilities of any national securities exchange or over-the-counter market on which the Common Stock is then traded or in privately-negotiated transactions; not less than three (3) business days prior to filing, the 

-25-

Company shall provide the Purchaser an opportunity to review and comment on the disclosure regarding the Purchaser;
(b)    use its best efforts, subject to receipt of necessary information from the Purchasers, to cause the Commission to declare the Registration Statement effective by the earlier of (i) 90 days after the Closing Date or, if the Registration Statement is selected for review by the Commission, 120 days after the Closing Date and (ii) the 5th business day after the date the Company is notified (orally or in writing, whichever is earlier) by the Commission that the Registration Statement will not be reviewed or will not be subject to further review (such earlier date, the “Effective Deadline”);
(c)    promptly prepare and file with the Commission such amendments and supplements to the Registration Statement and the prospectus used in connection therewith as may be necessary to keep the Registration Statement effective until the earliest of (i) two years after the effective date of the Registration Statement, (ii) such time as all of the Shares have been sold pursuant to the Registration Statement, or (iii) such time as the Shares become eligible for resale by non-affiliates without any volume limitations or other restrictions pursuant to Rule 144(b)(1)(i) under the Securities Act or any other rule of similar effect, without the requirement for the Company to be in compliance with the current public information requirements under Rule 144(c)(1) (or Rule 144(i)(2), if applicable);
(d)    furnish to the Purchaser with respect to the Shares registered under the Registration Statement (and to each underwriter, if any, of such Shares) such number of copies of prospectuses and such other documents as the Purchaser may reasonably request, in order to facilitate the public sale or other disposition of all or any of the Shares by the Purchaser;
(e)    bear all expenses in connection with the procedures in paragraphs (a) through (e) of this Section 7.1 and the registration of the Shares pursuant to the Registration Statement, other than fees and expenses, if any, of counsel or other advisers to the Purchaser or the Other Purchasers or underwriting discounts, brokerage fees and commissions incurred by the Purchaser or the Other Purchasers, if any in connection with the offering of the Shares pursuant to the Registration Statement;
(f)    file a Form D with respect to the Shares as required under Regulation D and to provide a copy thereof to the Purchaser promptly after filing; and
(g)    in order to enable the Purchasers to sell the Shares under Rule 144 to the Securities Act, for a period of one year from Closing, use its commercially reasonable efforts to comply with the requirements of Rule 144, including without limitation, use its commercially reasonable efforts to comply with the requirements of Rule 144(c)(1) with 

-26-

respect to public information about the Company and to timely file all reports required to be filed by the Company under the Exchange Act.
The Company understands that the Purchaser disclaims being an underwriter.  The Purchaser shall not be named as an “underwriter” in any Registration Statement without the Purchaser’s prior written consent.  A draft of the proposed form of the questionnaire related to the Registration Statement to be completed by the Purchaser is attached hereto as Appendix I.
7.2    Transfer of Securities After Registration.  The Purchaser agrees that it will not effect any disposition of the Shares or its right to purchase the Shares that would constitute a sale within the meaning of the Securities Act or pursuant to any applicable state securities laws, except as contemplated in the Registration Statement referred to in Section 7.1 or as otherwise permitted by law, including, without limitation, pursuant to Rule 144 under the Securities Act.
7.3    Indemnification.  For the purpose of this Section 7.3: (i) the term “Purchaser/Affiliate” shall mean any affiliate of the Purchaser, including, without limitation, any general partner or managing member of the Purchaser, any investment adviser of the Purchaser, or any transferee who is an affiliate of the Purchaser, and any person who controls the Purchaser or any affiliate of the Purchaser within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act; and (ii) the term “Registration Statement” shall include any preliminary prospectus, final prospectus, free writing prospectus, exhibit, supplement or amendment included in or relating to, and any document incorporated by reference in, the Registration Statement referred to in Section 7.1.
(a)    The Company agrees to indemnify and hold harmless the Purchaser and each Purchaser/Affiliate, against any losses, claims, damages, liabilities or expenses, joint or several, that the Purchaser or Purchaser/Affiliate incurs, under the Securities Act, the Exchange Act, or any other federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any litigation, if such settlement is effected with the written consent of the Company), insofar as such losses, claims, damages, liabilities or expenses (or actions in respect thereof as contemplated below) (i) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the Registration Statement, including the Prospectus, financial statements and schedules, and all other documents filed as a part thereof, as amended at the time of effectiveness of the Registration Statement, including any information deemed to be a part thereof as of the time of effectiveness pursuant to paragraph (b) of Rule 430A, or pursuant to Rules 430B, 430C or 434, of the Rules and Regulations, or the Prospectus, in the form first filed with the Commission pursuant to Rule 424(b) of the Regulations, or filed as part of the Registration Statement at the time of effectiveness if no Rule 424(b) filing is required or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission 

-27-

to state in any of them a material fact required to be stated therein or necessary to make the statements in the Registration Statement or any amendment or supplement thereto not misleading or in the Prospectus or any amendment or supplement thereto not misleading in light of the circumstances under which they were made or (ii) arise out of or are based in whole or in part on any inaccuracy in the representations or warranties of the Company contained in this Agreement, or any failure of the Company to perform its obligations hereunder or under law, and will promptly reimburse each Purchaser and each Purchaser/Affiliate for any legal and other out-of-pocket expenses as such expenses are reasonably incurred and documented by such Purchaser or such Purchaser/Affiliate in connection with investigating, defending or preparing to defend, settling, compromising or paying any such loss, claim, damage, liability, expense or action; provided, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage, liability or expense arises out of or is based upon (i) the gross negligence or willful misconduct of such Purchaser, or (ii) an untrue statement or alleged untrue statement or omission or alleged omission made in the Registration Statement, the Prospectus or any amendment or supplement thereto in reliance upon and in conformity with written information furnished to the Company by or on behalf of the Purchaser expressly for use therein, or (iii) the failure of such Purchaser to comply with the covenants and agreements contained in Sections 5.10 or 7.2 hereof respecting the sale of the Shares, or (iv) the inaccuracy of any representation or warranty made by such Purchaser herein or (v) any statement or omission in any Prospectus that is corrected in any subsequent Prospectus that was delivered to the Purchaser prior to the pertinent sale or sales by the Purchaser.  Any such indemnified Purchaser shall return all payments made hereunder if it is determined, by a final, non-appealable judgment by a court or arbitral tribunal that the losses for which such payments were made resulted from such indemnified Purchaser’s gross negligence or willful misconduct.
(b)    Each Purchaser will severally, but not jointly, indemnify and hold harmless the Company, each of its directors, each of its officers who signed the Registration Statement and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, against any losses, claims, damages, liabilities or expenses that the Company, each of its directors, each of its officers who signed the Registration Statement or controlling person incurs, under the Securities Act, the Exchange Act, or any other federal or state statutory law or regulation, or at common law or otherwise (including in settlement of any litigation, but only if such settlement is effected with the written consent of such Purchaser) insofar as such losses, claims, damages, liabilities or expenses (or actions in respect thereof as contemplated below) arise out of or are based upon (i) any failure to comply with the covenants and agreements contained in Sections 5.10 or 7.2 hereof respecting the sale of the Shares or (ii) the inaccuracy of any representation or warranty made by such Purchaser herein or (iii) any untrue or alleged untrue statement 

-28-

of any material fact contained in the Registration Statement, the Prospectus, or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements in the Registration Statement or any amendment or supplement thereto not misleading or in the Prospectus or any amendment or supplement thereto not misleading in the light of the circumstances under which they were made, in each case to the extent, but only to the extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, the Prospectus, or any amendment or supplement thereto, in reliance upon and in conformity with written information furnished to the Company by or on behalf of any Purchaser expressly for use therein; and will reimburse the Company, each of its directors, each of its officers who signed the Registration Statement or controlling person for any legal and other expense reasonably incurred by the Company, each of its directors, each of its officers who signed the Registration Statement or controlling person in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action; provided, however, that the Purchaser’s aggregate liability under this Section 7 shall not exceed the amount of net proceeds received by the Purchaser on the sale of the Shares pursuant to the Registration Statement.
(c)    Promptly after receipt by an indemnified party under this Section 7.3 of notice of the threat or commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party under this Section 7.3 promptly notify the indemnifying party in writing thereof, but the omission to notify the indemnifying party will not relieve it from any liability that it may have to any indemnified party for contribution or otherwise under the indemnity agreement contained in this Section 7.3 to the extent it is not prejudiced as a result of such failure.  In case any such action is brought against any indemnified party and such indemnified party seeks or intends to seek indemnity from an indemnifying party, the indemnifying party will be entitled to participate in, and, to the extent that it may wish, jointly with all other indemnifying parties similarly notified, to assume the defense thereof with counsel reasonably satisfactory to such indemnified party; provided, however, if the defendants in any such action include both the indemnifying party and the indemnified party, and the indemnifying party and the indemnified party shall have reasonably concluded, based on an opinion of counsel reasonably satisfactory to the indemnifying party, that there may be a conflict of interest between the positions of the indemnifying party and the indemnified party in conducting the defense of any such action or that there may be legal defenses available to it and/or other indemnified parties that are different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action on behalf of such indemnified party or parties.  Upon receipt of notice from the indemnifying party to such indemnified 

-29-

party of its election to assume the defense of such action and approval by the indemnified party of counsel, the indemnifying party will not be liable to such indemnified party under this Section 7.3 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof unless (i) the indemnified party shall have employed such counsel in connection with the assumption of legal defenses in accordance with the proviso to the preceding sentence (it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel, reasonably satisfactory to such indemnifying party, representing all of the indemnified parties who are parties to such action) or (ii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of commencement of action, in each of which cases the reasonable fees and expenses of counsel shall be at the expense of the indemnifying party.  In no event shall any indemnifying party be liable in respect of any amounts paid in settlement of any action unless the indemnifying party shall have approved in writing the terms of such settlement; provided that such consent shall not be unreasonably withheld.  No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened proceeding in respect of which any indemnified party is or could have been a party and indemnification could have been sought hereunder by such indemnified party, unless such settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such proceeding.
(d)    If the indemnification provided for in this Section 7.3 is required by its terms but is for any reason held to be unavailable to or otherwise insufficient to hold harmless an indemnified party under paragraphs (a), (b) or (c) of this Section 7.3 in respect to any losses, claims, damages, liabilities or expenses referred to herein, then each applicable indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of any losses, claims, damages, liabilities or expenses referred to herein (i) in such proportion as is appropriate to reflect the relative benefits received by the Company and the Purchaser from the private placement of Shares hereunder or (ii) if the allocation provided by clause (i) above is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but the relative fault of the Company and the Purchaser in connection with the statements or omissions or inaccuracies in the representations and warranties in this Agreement and/or the Registration Statement that resulted in such losses, claims, damages, liabilities or expenses, as well as any other relevant equitable considerations.  The relative benefits received by the Company on the one hand and the Purchaser on the other shall be deemed to be in the same proportion as the amount paid by the Purchaser to the Company pursuant to this Agreement for the Shares purchased by the Purchaser that were sold pursuant to the Registration Statement bears to 

-30-

the difference (the “Difference”) between the amount the Purchaser paid for the Shares that were sold pursuant to the Registration Statement and the amount received by the Purchaser from such sale.  The relative fault of the Company on the one hand and the Purchaser on the other shall be determined by reference to, among other things, whether the untrue or alleged statement of a material fact or the omission or alleged omission to state a material fact or the inaccurate or the alleged inaccurate representation and/or warranty relates to information supplied by the Company or by the Purchaser and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.  The amount paid or payable by a party as a result of the losses, claims, damages, liabilities and expenses referred to above shall be deemed to include, subject to the limitations set forth in paragraph (c) of this Section 7.3, any legal or other fees or expenses reasonably incurred by such party in connection with investigating or defending any action or claim.  The provisions set forth in paragraph (c) of this Section 7.3 with respect to the notice of the threat or commencement of any threat or action shall apply if a claim for contribution is to be made under this paragraph (d); provided, however, that no additional notice shall be required with respect to any threat or action for which notice has been given under paragraph (c) for purposes of indemnification.  The Company and the Purchaser agree that it would not be just and equitable if contribution pursuant to this Section 7.3 were determined solely by pro rata allocation (even if the Purchaser were treated as one entity for such purpose) or by any other method of allocation which does not take account of the equitable considerations referred to in this paragraph.  Notwithstanding the provisions of this Section 7.3, the Purchaser shall not be required to contribute any amount in excess of the amount by which the Difference exceeds the amount of any damages that such Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.  No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  The Purchasers’ obligations to contribute pursuant to this Section 7.3 are several and not joint.
7.4    Termination of Conditions and Obligations.  The restrictions imposed by Section 5.10 or Section 7.2 upon the transferability of the Shares shall cease and terminate as to any particular number of the Shares upon the earlier of (i) the passage of two years from the effective date of the Registration Statement covering such Shares and (ii) at such time as an opinion of counsel satisfactory in form and substance to the Company shall have been rendered to the effect that such conditions are not necessary in order to comply with the Securities Act.
7.5    Information Available.  The Company, upon the reasonable request of the Purchaser, shall make available for inspection by each Purchaser, any deemed underwriter participating in any disposition pursuant to the Registration Statement and any attorney, accountant 

-31-

or other agent retained by the Purchaser or any deemed underwriter, all financial and other records, pertinent corporate documents and properties of the Company.
SECTION 8.    Broker’s Fee.  The Purchaser acknowledges that the Company intends to pay to the Placement Agent a fee in respect of the sale of the Shares to the Purchaser.  The Purchaser and the Company agree that the Purchaser shall not be responsible for such fee and that the Company will indemnify and hold harmless the Purchaser and each Purchaser/Affiliate against any losses, claims, damages, liabilities or expenses, joint or several, that such Purchaser or Purchaser/Affiliate incurs with respect to such fee.  Each of the parties hereto represents that, on the basis of any actions and agreements by it, there are no other brokers or finders entitled to compensation in connection with the sale of the Shares to the Purchaser.
SECTION 9.    Independent Nature of Purchasers’ Obligations and Rights.  The obligations of the Purchaser under this Agreement are several and not joint with the obligations of any Other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any Other Purchaser under the Agreements.  The decision of each Purchaser to purchase the Shares pursuant to the Agreements has been made by such Purchaser independently of any other Purchaser.  Nothing contained in the Agreements, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Agreements.  The Purchaser acknowledges that no Other Purchaser has acted as agent for the Purchaser in connection with making its investment hereunder and that no Other Purchaser will be acting as agent of the Purchaser in connection with monitoring its investment in the Shares or enforcing its rights under this Agreement.  The Purchaser shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for any Other Purchaser to be joined as an additional party in any proceeding for such purpose.
SECTION 10.    Notices.  All notices, requests, consents and other communications hereunder shall be in writing, shall be mailed by first-class registered or certified airmail, e-mail, confirmed facsimile or nationally recognized overnight express courier postage prepaid, and shall be deemed given when so mailed and shall be delivered as addressed as follows:
(a)    if to the Company, to:
MVB Financial Corp. 
301 Virginia Avenue 
Fairmont, West Virginia  26554 
Attention: Donald T. Robinson 

-32-

Facsimile: (304) 594-1692  
E-mail: drobinson@mvbbanking.com 

with a copy to:
Squire Patton Boggs (US) LLP 
221 E. Fourth Street, Suite 2900 
Cincinnati, Ohio 45202 
Attention: James J. Barresi 
Facsimile: (513) 361-1201 
E-mail: james.barresi@squirepb.com
or to such other person at such other place as the Company shall designate to the Purchaser in writing; and
(b)    if to the Purchaser, only at its address as set forth at the end of this Agreement, or at such other address or addresses as may have been furnished to the Company in writing.
SECTION 11.    Changes.  This Agreement may not be modified or amended except pursuant to an instrument in writing signed by the Company and the Purchaser.  Any amendment or waiver effected in accordance with this Section 11 shall be binding upon each holder of any securities purchased under this Agreement at the time outstanding, each future holder of all such securities, and the Company.
SECTION 12.    Headings.  The headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed to be part of this Agreement.
SECTION 13.    Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, each of which shall remain in full force and effect and in lieu of such invalid or unenforceable provision there shall be automatically added as part of this Agreement a valid and enforceable provision as similar in terms to the invalid or unenforceable provision as possible, provided that this Agreement as amended, (i) reflects the intent of the parties hereto, and (ii) does not change the bargained for consideration or benefits to be received by each party hereto.
SECTION 14.    Governing Law; Venue.  This Agreement is to be construed in accordance with and governed by the federal law of the United States of America and the internal laws of the State of New York without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of New York to the rights and duties of the parties.  Each of the Company and the Purchaser submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any 

-33-

New York State court sitting in New York City for purposes of all legal proceedings arising out of or relating to this Agreement and the transactions contemplated hereby.  Each of the Company and the Purchaser irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.
SECTION 15.    Counterparts.  This Agreement may be executed in counterparts, each of which shall constitute an original, but all of which, when taken together, shall constitute but one instrument, and shall become effective when one or more counterparts have been signed by each party hereto and delivered to the other parties.  Facsimile or .pdf scanned signatures shall be deemed original signatures.
SECTION 16.    Entire Agreement.  This Agreement and the instruments referenced herein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor the Purchaser makes any representation, warranty, covenant or undertaking with respect to such matters.  Each party expressly represents and warrants that it is not relying on any oral or written representations, warranties, covenants or agreements outside of this Agreement.
SECTION 17.    Fees and Expenses.  Except as set forth herein, each of the Company and the Purchaser shall pay its respective fees and expenses related to the transactions contemplated by this Agreement.
SECTION 18.    Parties.  This Agreement is made solely for the benefit of and is binding upon the Purchaser and the Company and to the extent provided in Section 7.3, any person entitled to indemnification thereunder, and their respective executors, administrators, successors and assigns and, subject to the provisions of Section 7.3, no other person shall acquire or have any right under or by virtue of this Agreement.  The term “successor and assigns” shall not include any subsequent purchaser, as such purchaser, of the Shares sold to the Purchaser pursuant to this Agreement.
SECTION 19.    Further Assurances.  Each party agrees to cooperate fully with the other parties and to execute such further instruments, documents and agreements and to give such further written assurance as may be reasonably requested by any other party to evidence and reflect the transactions described herein and contemplated hereby and to carry into effect the intents and purposes of this Agreement.
SECTION 20.    Third-Party Beneficiary.  The Company agrees that the Placement Agent shall be, and is hereby, named as an express third-party beneficiary of this Agreement solely with respect to the representations and warranties of the Company contained in Section 4 with full rights as such.

-34-

SECTION 21.    No Change of Control.  The Company shall use reasonable best efforts to obtain all necessary irrevocable waivers, adopt any required amendments and make all appropriate determinations so that the issuance of the Shares to the Purchasers will not trigger a “change of control” or other similar provision in any of the agreements to which the Company or any of its subsidiaries is a party, including without limitation any employment, “change in control,” severance or other agreements and any benefit plan, which results in payments to the counterparty or the acceleration of vesting of benefits.
SECTION 22.    Avoidance of Control.  Notwithstanding anything to the contrary in this Agreement, neither the Company nor any subsidiary shall take any action (including, without limitation, any redemption, repurchase, rescission or recapitalization of Common Stock, or securities or rights, options or warrants to purchase Common Stock, or securities of any type whatsoever that are, or may become, convertible into or exchangeable into or exercisable for Common Stock in each case, where the Purchaser is not given the right to participate in such redemption, repurchase, rescission or recapitalization to the extent of the Purchaser’s pro rata proportion), that would cause the Purchaser’s ownership of any class of voting securities of the Company (together with the ownership by such Purchaser’s affiliates (as such term is used under the BHC Act) of voting securities of the Company) to exceed 9.9%, without the prior written consent of the Purchaser, or to increase to an amount that would constitute “control” under the BHC Act, the CIBC Act or any rules or regulations promulgated thereunder (or any successor provisions) or otherwise cause the Purchaser to “control” the Company under and for purposes of the BHC Act, the CIBC Act or any rules or regulations promulgated thereunder (or any successor provisions).  Notwithstanding anything to the contrary in this Agreement, no Purchaser (together with its affiliates (as such term is used under the BHC Act)) shall have the ability to purchase more than 9.9% of the total outstanding voting securities of the Company.  In the event either the Company or the Purchaser breaches its obligations under this Section 22 or believes that it is reasonably likely to breach such an obligation, it shall promptly notify the other party hereto and shall cooperate in good faith with such party to modify ownership or make other arrangements or take any other action, in each case, as is necessary to cure or avoid such breach.
SECTION 23.    Termination.  This Agreement may be terminated and the sale and purchase of the Shares abandoned at any time prior to the Closing by either the Company or the Purchaser upon written notice to the other, if the Closing has not been consummated on or prior to 5:00 p.m., New York City time, on the fifteenth (15th) day following the date of this Agreement; provided that if such day is not a business day, the first day following such day that is a business day; provided, however, that the right to terminate this Agreement under this Section 23 shall not be available to any person whose failure to comply with its obligations under this Agreement has been the cause of or resulted in the failure of the Closing to occur on or before such time.  Nothing in this Section 23 shall be deemed to release any party from any liability for any breach by such party of the terms and provisions of this Agreement or to impair the right of any party to compel specific performance 

-35-

by any other party of its obligations under this Agreement.  In the event of a termination pursuant to this Section, the Company shall promptly notify all non-terminating Purchasers.  Upon a termination in accordance with this Section, the Company and the Purchaser shall not have any further obligation or liability (including arising from such termination) to the other.
[Signature Page Follows]

-36-

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives as of the day and year first above written.
MVB FINANCIAL CORP.

By:     
      Name: Larry F. Mazza  
      Title: President and Chief Executive Officer

PURCHASER:
 
Name of Purchaser 
(Individual or Institution)
 
Jurisdiction of Purchaser’s Executive Offices
 
Name of Individual representing 
Purchaser (if an Institution)
 
Title of Individual representing 
Purchaser (if an Institution)

[Signature Page to Securities Purchase Agreement]

Signature by:
Individual Purchaser or Individual representing Purchaser:
 
Address:     
Telephone:     
Facsimile:     
E-mail:     

	
			
	Number of Shares to Be Purchased
	Price Per 
Share in Dollars
	Aggregate 
Price

	 
	$11.50
	$

[Signature Page to Securities Purchase Agreement]

SCHEDULE 4.12
INTELLECTUAL PROPERTY

The Company received a letter, dated August 16, 2013 (the “Letter”), from Middletown Valley Bank (“Middletown”) notifying the Company that Middletown is a small community bank operating under the trade name “MVB” in Western Frederick County and Eastern Washington County, Maryland. The Letter indicated that the Company’s operations and use and advertising of the “MVB” trade name in Berkeley and Jefferson Counties, West Virginia (which are adjacent to Washington County, Maryland) had caused some confusion among Middletown’s clients in the West Virginia counties.  On September 26, 2013, Middletown filed an application with the United States Patent and Trademark Office (“USPTO”) to register the word mark “MVB.” The USPTO issued such registration on May 26, 2014. The Company filed an application to register “MVB” on March 19, 2014, which application was denied by the USPTO due to Middletown’s registration.  The Company and Middletown have since continued their respective operations under the “MVB” trade name.

Schedule 4.12

EXHIBIT A 
SIGNIFICANT SUBSIDIARIES
	
		
	Subsidiary
	Jurisdiction of Incorporation

	MVB Bank, Inc.
	West Virginia

	Potomac Mortgage Group, Inc. 
(D/B/A MVB Mortgage)
	Virginia

	 
	 

	 
	 

	 
	 

Exhibit A

APPENDIX I 
 
SUMMARY INSTRUCTION SHEET FOR PURCHASER
(to be read in conjunction with the entire Securities Purchase Agreement which follows)
A.    Complete the following items on the Securities Purchase Agreement (Please sign two originals):
		
	1.
	Signature Page:

(i)    Name of Purchaser (Individual or Institution)
(ii)    Name of Individual representing Purchaser (if an Institution)
(iii)    Title of Individual representing Purchaser (if an Institution)
(iv)    Signature of Individual Purchaser or Individual representing Purchaser
		
	2.
	Appendix I - Securities Certificate Questionnaire/Registration Statement Questionnaire:

Provide the information requested by the Securities Certificate Questionnaire and the Registration Statement Questionnaire.
		
	3.
	Return the properly completed and signed Securities Purchase Agreement including the properly completed Appendix I to (initially by email with original by overnight delivery):

Keefe, Bruyette & Woods, Inc 
Investment Banking 
787 Seventh Ave., 5th Floor 
New York, NY 10019 
Attention: Scott R. Anderson 
Email: sanderson@kbw.com 
B.    Instructions regarding the transfer of funds for the purchase of Shares will be sent by facsimile to the Purchaser by the Placement Agent.

MVB FINANCIAL CORP. 
 
SECURITIES CERTIFICATE QUESTIONNAIRE
Pursuant to Section 3 of the Agreement, please provide us with the following information:
	
			
	1.
	The exact name that your Shares are to be registered in (this is the name that will appear on your stock certificate(s)).  You may use a nominee name if appropriate:
	________________________________

	2.
	The relationship between the Purchaser of the Shares and the Registered Holder listed in response to item 1 above:
	________________________________

	3.
	The mailing address of the Registered Holder listed in response to item 1 above:
	________________________________
________________________________
________________________________
________________________________

	4.
	The Social Security Number or Tax Identification Number of the Registered Holder listed in response to item 1 above:
	________________________________

MVB FINANCIAL CORP. 
 
REGISTRATION STATEMENT QUESTIONNAIRE
In connection with the preparation of the Registration Statement, please provide us with the following information:
SECTION 1.    Pursuant to the “Selling Stockholder” section of the Registration Statement, please state your or your organization’s name exactly as it should appear in the Registration Statement:
______________________________________________________________________________
______________________________________________________________________________
SECTION 2.    Please provide the number of shares of Common Stock of the Company that you or your organization will own immediately after Closing, including those Shares purchased by you or your organization pursuant to this Securities Purchase Agreement and those shares purchased by you or your organization through other transactions and provide the number of shares that you have or your organization has the right to acquire within 60 days of Closing:
______________________________________________________________________________
______________________________________________________________________________
SECTION 3.    Have you or your organization had any position, office or other material relationship within the past three years with the Company or its affiliates?
_____ Yes _____ No
If yes, please indicate the nature of any such relationships below:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
SECTION 4.    Are you (i) a FINRA Member (see definition), (ii) a Controlling (see definition) shareholder of a FINRA Member, (iii) a Person Associated with a Member of the FINRA (see definition), or (iv) an Underwriter or a Related Person (see definition) with respect to the 

proposed offering; or (b) do you own any shares or other securities of any FINRA Member not purchased in the open market; or (c) have you made any outstanding subordinated loans to any FINRA Member?
Answer: [ ] Yes [ ] No If “yes,” please describe below:
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
FINRA Member.  The term “FINRA Member” means either any broker or dealer admitted to membership in the Financial Industry Regulatory Authority (formerly, the National Association of Securities Dealers, Inc., “FINRA”).  (FINRA Manual, By-laws of FINRA Regulation, Inc. Article I, Definitions)
Control.  The term “control” (including the terms “controlling,” “controlled by” and “under common control with”) means the possession, direct or indirect, of the power, either individually or with others, to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract, or otherwise.  (Rule 405 under the Securities Act of 1933, as amended)
Person Associated with a member of the FINRA.  The term “person associated with a member of the FINRA” means every sole proprietor, partner, officer, director, branch manager or executive representative of any FINRA Member, or any natural person occupying a similar status or performing similar functions, or any natural person engaged in the investment banking or securities business who is directly or indirectly controlling or controlled by a FINRA Member, whether or not such person is registered or exempt from registration with the FINRA pursuant to its bylaws.  (FINRA Manual, By-laws of FINRA Regulation, Inc. Article I, Definitions)
Underwriter or a Related Person.  The term “underwriter or a related person” means, with respect to a proposed offering, underwriters, underwriters’ counsel, financial consultants and advisors, finders, members of the selling or distribution group, and any and all other persons associated with or related to any of such persons.  (FINRA Interpretation)EX-10.1

 Exhibit 10.1 

Supplemental Agreement No. 5 

Dated Effective as of 5 December 2016 

To DRILLSHIP CONTRACT dated 27 September, 2012 

By and between 
 ALPHA ADMIRAL
COMPANY (the “BUYER”) 
 and 

DAEWOO SHIPBUILDING & MARINE ENGINEERING CO., LTD. (“BUILDER”) 

(together, the “Parties” and each individually, a “Party”) 

WHEREAS 
  

	 	A.	The Builder and the Buyer are Parties to that certain Drillship Contract dated 27 September 2012 (the “CONTRACT”) for the construction and sale of one (1) Deepwater Drillship with Hull
No. 3619. (the “DRILLSHIP”) 

  

	 	B.	On 1 November 2014, the Parties supplemented the CONTRACT by executing Supplemental Agreement No. 1 (“Supplemental Agreement No. 1”), pursuant to which the DELIVERY DATE for the DRILLSHIP
was extended from 31 March 2015 (the “Original Delivery Date”) to 30 September 2015 (the “Fall 2015 Delivery Date”) in exchange for payment to the BUILDER by the BUYER of INTERIM PAYMENT 1 (in the amount
of USD $50,000,000) on 1 November 2014, INTERIM PAYMENT 2 (in the amount of USD $25,000,000) on 30 June 2015, and USD $2,731,625 on the Fall 2015 Delivery Date (the “Original Financing Payment”). 

 

	 	C.	Effective 6 February 2015, the Parties further supplemented the CONTRACT by executing Supplemental Agreement No. 2 (“Supplemental Agreement No. 2”), pursuant to which the DELIVERY DATE
for the DRILLSHIP could potentially be extended for up to two consecutive six month periods as specified therein. 

  

	 	D.	Effective 18 May 2015, the Parties further supplemented the CONTRACT by executing Supplemental Agreement No. 3 (“Supplemental Agreement No. 3”), pursuant to which the Parties modified the
payment schedule for the delivery of certain payment milestones as specified in Supplemental Agreement No. 2, as well as certain provisions related to the storage location of the DRILLSHIP within the SHIPYARD prior to the DELIVERY DATE and
costs related thereto. 

  

	 	E.	Effective 17 December 2015, the Parties further modified the CONTRACT by executing Supplemental Agreement No. 4 (“Supplemental Agreement No. 4”), which modified the payment schedule for
the delivery of certain milestone payments, extended the potential DELIVERY DATE of the DRILLSHIP, and amended certain fees related to the financing and maintenance of the DRILLSHIP while at the SHIPYARD. 

 

	 	F.	The Parties now wish to further amend the payment schedule for the remaining balance for the DRILLSHIP, extend the potential DELIVERY DATE of the DRILLSHIP, and amend certain fees related to the financing and
maintenance of the DRILLSHIP. 

 NOW, in consideration of the premises and for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, IT IS HEREBY AGREED AS FOLLOWS: 
  

	 	1.	This Supplemental Agreement No. 5 (the “Agreement”) is supplemental to the CONTRACT and shall be considered an integral part thereof. Unless otherwise defined in this Supplemental Agreement
No. 5, words and expressions defined in the CONTRACT or Supplemental Agreement No. 1, Supplemental Agreement No. 2, Supplemental Agreement No. 3 or Supplemental Agreement No. 4 shall have the same meaning when used in this
Agreement. 

	 	2.	The obligations of the BUILDER and BUYER specified herein are subject to the payment by BUYER’s Affiliate, Alpha Archer Company, of One Hundred and Twenty Five Million United States Dollars (U$ 125,000,000) no
later than 15 December 2016 in respect of the construction of Hull No. 3622 that is the subject of that certain contract between Alpha Archer Company and the BUILDER dated 24 June 2013. 

 

	 	3.	BUILDER and BUYER agree to extend the DELIVERY DATE for the DRILLSHIP by an additional twenty four (24) months from the Fall 2017 Delivery Date (the “Revised Extension Period”) to 30 September
2019 (the “Fall 2019 Delivery Date”). Article VII.2.(a) of the CONTRACT shall be deleted in its entirety and shall be replaced with the following: 

The DRILLSHIP shall be DELIVERED safely afloat by BUILDER to BUYER at a berth in the SHIPYARD on or before 30th September 2019, except that, in the event of delays in the construction of the DRILLSHIP or any performance required under this CONTRACT due to causes which under the terms of this CONTRACT
permit postponement of the date for DELIVERY, the aforementioned date for DELIVERY of the DRILLSHIP shall be postponed accordingly. The aforementioned date, or such later date to which the requirement of DELIVERY is postponed pursuant to such terms,
is herein called the “DELIVERY DATE”. 
  

	 	4.	Notwithstanding the provisions of Article VII.2. of the CONTRACT (as amended by this Supplemental Agreement No. 5), at any time after the Effective Date of this Agreement but prior to 15 August 2019, BUYER may
give BUILDER written notice of its requirement that the DELIVERY DATE for the DRILLSHIP be accelerated to forty five (45) days from the date of such notice (the “Accelerated Delivery Notice – Fall 2019”). In the event an
Accelerated Delivery Notice – Fall 2019 is delivered, upon receipt of the Accelerated Delivery Notice – Fall 2019, BUILDER will promptly restart its construction and other activities and use its best efforts to deliver the DRILLSHIP within
the forty five (45) day period. In the event BUILDER fails to meet the accelerated DELIVERY DATE and deliver the DRILLSHIP within forty five (45) days from receipt of such notice, BUYER shall not be liable for the Extension Fee – Fall
2017 as specified in Supplemental Agreement No. 4, any interest accrued as specified in Section 6 or Section 8 of this Supplemental Agreement No.5, or for the Holding Costs specified in this Agreement for any day following the forty
five day period, in addition to remaining entitled to any other BUYER remedies provided in the CONTRACT. 

  

	 	5.	The BUYER and BUILDER agree to amend and revise the payment schedule for the DRILLSHIP, such that a new INTERIM PAYMENT 5 (“INTERIM PAYMENT 5”) shall be paid by BUYER to BUILDER in the amount of Ten
Million United States Dollars (USD $10,000,000) no later than the earlier of the ACTUAL DELIVERY DATE or 30 September 2017, provided, however, that INTERIM PAYMENT 5 shall not be made unless and until the BUILDER has completed all outstanding
punch list items to the reasonable satisfaction of BUYER, which shall be confirmed in writing between BUILDER and BUYER as soon as reasonably practicable following such completion. Any punch list items that BUILDER proposes to complete but the BUYER
requests to delay until immediately prior to the ACTUAL DELIVERY, with agreement on delay of any such items to be confirmed in writing following the Effective Date of this Agreement, shall no longer be considered outstanding punch list items in
relation to the withholding of payment of INTERIM PAYMENT 5. The Parties agree that the CONTRACT PRICE, which was reduced pursuant to Supplemental Agreement No. 1, Supplemental Agreement No. 2, Supplemental Agreement No. 3, and
Supplemental Agreement No. 4, shall be further reduced by INTERIM PAYMENT 5 such that PAYMENT MILESTONE 2, due at the DELIVERY DATE of the DRILLSHIP, shall be reduced to Eighty Three Million Nine Hundred Thousand US Dollars (USD
$83,900,000.00). Accordingly, Article II.3(b) of the CONTRACT shall be amended such that the phrase “Ninety Three Million Nine Hundred Thousand (USD $93,900,000.00)” shall be deleted in its entirety and replaced with “Eighty Three
Million Nine Hundred Thousand (USD $83,900,000.00)”. 

	 	6.	The BUYER and BUILDER agree to modify the payment schedule for the DRILLSHIP, such that, notwithstanding the terms in Article II(4)(b) of the CONTRACT, PAYMENT MILESTONE 2 (which, for clarity, as used herein shall
include any references to “MILESTONE PAYMENT 2” in Supplemental Agreement No. 1, Supplemental Agreement No. 2, Supplemental Agreement No. 3, and Supplemental Agreement No. 4) shall not be due on the DELIVERY DATE of the
DRILLSHIP. Instead, the balance of PAYMENT MILESTONE 2 shall be due and paid, along with certain other fees and interest, as follows: 

  

	 	a.	Commencing on 1 December 2016, and accruing for every day thereafter until the date of payment of INTERIM PAYMENT 5, an amount of interest equal to four and one half percent (4.5%) per annum on the outstanding
balance of PAYMENT MILESTONE 2 (“Milestone 2 Interest Amount – A”) shall accrue. 

  

	 	b.	Commencing on the date of payment of INTERIM PAYMENT 5, and accruing for every day thereafter until the ACTUAL DELIVERY DATE, an amount of interest equal to four and one half percent (4.5%) per annum on the
outstanding balance of PAYMENT MILESTONE 2 (“Milestone 2 Interest Amount – B”) shall accrue. 

  

	 	7.	Notwithstanding Article VII(3) of the CONTRACT, DELIVERY of the DRILLSHIP shall occur without full payment of the CONTRACT PRICE on the ACTUAL DELIVERY DATE with BUILDER fulfilling all obligations specified in the
CONTRACT related to the DRILLSHIP, including but not limited to Article VII, in exchange for: 

  

	 	a.	BUYER and BUILDER executing a promissory note (“Promissory Note”) in substantively identical form to the Promissory Note attached as Exhibit A to this Supplemental Agreement No. 5 effective as of
the ACTUAL DELIVERY DATE for the outstanding balance of PAYMENT MILESTONE 2 and Milestone 2 Interest Amount – A, and Milestone 2 Interest Amount – B as specified in Article 6(a)and 6(b) above. Such Promissory Note shall bear interest at
five percent (5%) per annum, and shall be due and payable on 30 December 2022, provided, however, that BUYER may pre-pay such Promissory Note in full or in part at any time prior to 31 December 2022 without premium or penalty;

  

	 	b.	BUYER shall grant to BUILDER a first preferred mortgage over the DRILLSHIP (“Security Interest”) in substantively identical form as the First Preferred Ship Mortgage attached as Exhibit B to this
Supplemental Agreement No. 5 effective as of the ACTUAL DELIVERY DATE. Such Security Interest shall be recorded as soon as reasonably practicable with the applicable registry of the Republic of the Marshall Islands, but in any event no longer
than fourteen (14) days from the ACTUAL DELIVERY DATE (or such later date to which the BUILDER consents), provided that the DRILLSHIP cannot depart the SHIPYARD until the recordation of such Security Interest is complete unless BUILDER
otherwise consents; and 

  

	 	c.	BUYER shall provide BUILDER with an assignment of insurance relating to the DRILLSHIP in substantively identical form as the Assignment of Insurances attached as Exhibit C to this Supplemental Agreement No. 5
effective as of the ACTUAL DELIVERY DATE. 

  

	 	8.	 Commencing 1 December 2016, BUYER shall cease to pay to BUILDER the costs and fees set forth in Article 5 of
Supplemental Agreement No. 4, and any such accrued and unpaid costs and fees up to and inclusive of 30 November 2016 shall be paid in full by BUYER to BUILDER per the terms of the CONTRACT. Commencing 1 December 2016, BUYER shall owe
to BUILDER certain accrued and deferred costs (“Holding Costs”) associated with the holding of the DRILLSHIP at BUILDER’s location as specified in the CONTRACT, including but not limited to Supplemental Agreement No. 4,
until the ACTUAL DELIVERY DATE. Notwithstanding Article 5 of Supplemental Agreement No. 4, the Holding Costs shall be accrued from 1 December 2016 until the ACTUAL DELIVERY DATE, and the Holding Costs shall accrue interest at

	 	
the rate of four and one half percent (4.5%) per annum. The total amount of the accrued Holding Costs plus the accrued interest on such Holding Costs shall be paid in full from BUYER to
BUILDER on the ACTUAL DELIVERY DATE of the DRILLSHIP. The Holding Costs shall be comprised of the items set forth in Article 5 of Supplemental Agreement No. 4, with the changes noted below to the following items: 

 

	 	a.	the Vessel Storage at Quay Fee as specified in item no.4 of Appendix 1 to Supplemental Agreement No. 4 shall be amended to Ten Thousand United States Dollars per day (USD $10,000/day), and the corresponding Remark
for such item shall be deleted in its entirety and replaced with “Reasonable and documented expenses for electrical shore power plus a maximum aggregate markup of five percent (5%) on such shore power expenses”; 

 

	 	b.	the Supplemental Financing Payment – Summer 2018 shall be deleted in its entirety, and shall no longer accrue effective 1 December 2016; 

 

	 	c.	the Supplemental Classification Payment shall remain at one thousand three hundred and thirty three United States Dollars (USD $1,333.00) per day, provided that the BUILDER shall utilize its reasonable efforts to reduce
the cost of such Supplemental Classification Payment as soon as reasonably practicable after completion of the DRILLSHIP, and shall provide written notice to BUYER of such reduction in cost, if any, as soon as reasonably practicable;

  

	 	d.	the Supplemental Dock Fee shall be deleted in its entirety, and shall no longer accrue effective 1 December 2016; and 

  

	 	e.	the Extension Fee – Fall 2017 shall be deleted in its entirety, and shall cease to be payable monthly effective 1 December 2016. 

 

	 	9.	The BUYER hereby covenants that from date of this Agreement until the ACTUAL DELIVERY DATE, it shall make reasonable efforts to not exercise its right to terminate the Contract (as amended, supplemented and varied from
time to time) in accordance with the provisions of Article X of the Contract (as amended, supplemented and varied from time to time). In addition, the BUYER and BUILDER agree that from the date and time of the commencement of the WARRANTY PERIOD,
the BUYER, notwithstanding the provisions of Article X Section 1 of the CONTRACT, shall not exercise its rights to terminate the CONTRACT unless one of the following events occurs: i) the DRILLSHIP is declared an actual, constructive, arranged,
or compromised total loss prior to ACTUAL DELIVERY DATE, ii) the BUILDER breaches a material obligation of the CONTRACT which materially affects the condition of the DRILLSHIP or the ability for BUILDER to deliver the DRILLSHIP with clear title per
Article VII Section 4(e) and such breach cannot be cured prior to, or otherwise results in more than a further thirty (30) day delay to any scheduled DELIVERY DATE, including but not limited to the DELIVERY DATE that has moved due to an
Accelerated Delivery Notice – Fall 2019 delivered by BUYER, (iii) the BUILDER voluntarily or involuntarily is made a party to any receivership, liquidation, or bankruptcy proceeding which cannot be cured prior to, or otherwise results in
more than a further 30 day delay to any scheduled DELIVERY DATE, including but not limited to the DELIVERY DATE that has moved due to an Accelerated Delivery Notice – Fall 2019, or such proceeding prevents BUILDER from executing the Security
Interest or otherwise prevents BUILDER from performing its obligations related to providing to the BUYER deferred financing of the outstanding amounts due under the CONTRACT, as amended and supplemented from time to time, or any third party holding
an interest in the BUILDER or DRILLSHIP acts to otherwise prevent the delivery of the DRILLSHIP. 

  

	 	10.	All the terms and conditions of the CONTRACT, Supplemental Agreement No. 1, Supplemental Agreement No. 2, Supplemental Agreement No. 3 and Supplemental Agreement No. 4 shall remain unchanged and be
in full force and effect unless otherwise provided hereunder. 

	 	11.	The existence and content of this Supplemental Agreement No. 5 shall remain strictly private and confidential to the Parties and their advisors and shall not be disclosed by either Party to any third party (except
any financier of the DRILLSHIP or its advisers) absent the agreement of the other Party, save by compulsion of law or regulatory authority. 

  

	 	12.	Each Party hereto confirms that its respective obligations under, arising out of or in connection with, the CONTRACT shall continue in full force and effect as amended by this Supplemental Agreement No. 5.

  

	 	13.	This Supplemental Agreement No. 5 shall be governed by and construed in accordance with the laws of England and any dispute arising under this Supplemental Agreement No. 5 shall be submitted to arbitration in
accordance with Article XIII (DISPUTES AND ARBITRATION) of the CONTRACT. 

  

	 	14.	This Supplemental Agreement No. 5 may be executed by each of the Parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and
the same instrument. Delivery of an executed signature page of this Supplemental Agreement No. 5 in Portable Document Format (PDF) or by facsimile transmission shall be effective as delivery of an executed original counterpart of this
Supplemental Agreement No. 5, although the original signature pages shall be thereafter appended to this Supplemental Agreement No. 5. 

[Signature Page Follows] 

 For and on behalf of 

Alpha Admiral Company 
  

			
	By:	 	 /s/ p.p. Michael McDaniel

	Name:	 	Walter A. Baker
	Title:	 	Director

 For and on behalf of 

Daewoo Shipbuilding & Marine Engineering Co., Ltd. 
  

			
	By:	 	 /s/ Jae Kwan Seo

	Name:	 	Jae Kwan Seo
	Title:	 	Vice President, Offshore Business

 Exhibit A 

PROMISSORY NOTE 
  

			
	Date of Original Issuance: [•]	  	$[•]

 FOR VALUE RECEIVED, [ALPHA ADMIRAL COMPANY], an exempted company incorporated in the Cayman Islands (the
“Maker”), hereby promises and agrees to pay to the order of [Daewoo Shipbuilding and Marine Engineering Co., Ltd.], a [•] (together with its successors and permitted assigns, the “Holder”), the aggregate
principal amount of [•] MILLION [•] THOUSAND [•] HUNDRED and [•]/100 DOLLARS ($[•])1, in lawful money of the United States of America and in immediately available funds,
on December 30, 2022 (the “Maturity Date”), together with interest thereon calculated from the date hereof in accordance with the provisions of this Promissory Note (this “Note”). 

As used herein, “Delivery Date” shall mean the date of actual unconditional delivery by the Holder of the Marshal Islands
flag vessel ATWOOD ADMIRAL, Official No. [    ] (the “Vessel”) in accordance with the Drillship Contract, dated as of September 27, 2012 (as amended, supplemented or otherwise modified, the
“Drillship Contract”), by and between Maker and Holder, and as evidenced by a protocol of delivery and acceptance executed by the Maker and the Holder. 

Section 1. Payment of Principal.  

(a) Voluntary Prepayments. The Maker shall have the right from time to time to prepay in whole or in part, without notice, premium or
penalty, the outstanding principal amount of this Note, together with any accrued but unpaid interest thereon owed pursuant to this Note. 

(b) Mandatory Payments. 

(i) Maturity. The Maker shall pay the outstanding principal amount of this Note, together with any accrued but unpaid
interest thereon owed pursuant to this Note, on the Maturity Date. 
 (ii) Event of Loss. Promptly after receipt of
the full amount of the insurance proceeds following an Event of Loss, the Maker shall prepay the outstanding principal amount of this Note, together with any accrued but unpaid interest thereon owed pursuant to this Note to but excluding the date of
such prepayment. As used herein, “Event of Loss” shall mean any of the following events: (x) the actual or constructive total loss of the Vessel or the agreed or compromised total loss of the Vessel; or (y) the capture,
condemnation, confiscation, requisition for title and not hire, seizure or forfeiture of, or 
  

	1 	 NTD: Amount to be filled in on execution date. Amount will be equal to (x) $83,900,000 plus
(y) an amount equal to 4.5% interest on such amount from December 1, 2016 until but not including the Delivery Date of the Atwood Admiral plus (z) any accrued and unpaid interest on Interim Payment 5 (as defined in Supplemental
Agreement No. 5 to the Drillship Contract). 

 
any taking of title to, the Vessel by any applicable governmental authority. An Event of Loss shall be deemed to have occurred (i) in the event of an actual loss of the Vessel, at the time
and on the date of such loss or if that is not known at noon Greenwich Mean Time on the date that the Vessel was last heard from; (ii) in the event of damage which results in a constructive or compromised or arranged total loss of the Vessel,
at the time and on the date of the event giving rise to such damage; or (iii) in the case of an event referred to in clause (y) above, at the time and on the date on which such event is expressed to take effect by the individual,
corporation, partnership or other entity or any government or political subdivision or any agency, department or instrumentality thereof (each, a “Person”) making the same. 

(iii) Sale of Vessel. Promptly after receipt of proceeds following the sale or transfer of the Vessel to another Person,
the Maker shall prepay the outstanding principal amount of this Note, together with any accrued but unpaid interest thereon owed pursuant to this Note to but excluding the date of such prepayment; provided, that no such prepayment shall be
required so long as (i) the Person acquiring the Vessel is an Affiliate (as defined below) of Atwood Oceanics, Inc., a Texas corporation (“AOI”), and (ii) such Person assumes the obligations under this Note and the
Mortgage (as defined below), or enters into a new Mortgage, pursuant to agreements reasonably satisfactory to the Holder. In connection with any such assumption, the predecessor Maker will automatically be released from its obligations under this
Note and the Mortgage upon the assumption of the obligations under this Note and the Mortgage (or entry into a new Mortgage) by such Affiliate, and such Affiliate will become the Maker hereunder for all purposes hereof with the same force and effect
as if originally named herein as the Maker. The term “Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with such
Person. A Person shall be deemed to control another Person if such Person possesses, directly or indirectly, the power to direct or cause the direction of the management and policies of such other Person, whether through the ownership of voting
securities, by contract or otherwise. 
 Section 2. Payment of Interest. Except as otherwise specified in
Section 8(a) below, the outstanding principal amount of this Note shall bear simple interest on the entire unpaid principal amount thereof at the per annum rate of five percent (5%) (the “Interest Rate”) until the
entire principal amount of this Note shall have been paid in full. Interest shall be payable in arrears on the Maturity Date. If this Note is not repaid in full in accordance with its terms on or before the Maturity Date, interest shall continue to
accrue on the unpaid principal amount of this Note, and shall be payable upon demand, until all amounts under this Note have been paid in full. Interest will be computed on the basis of a 365/366-day year and the actual number of days elapsed. 

Section 3. Payments Generally. If any payment on this Note becomes due on a Saturday, Sunday or a bank or legal holiday under the
laws of the State of New York (any other day, a “Business Day”), such payment will be made on the next succeeding Business Day and such extension of time shall be included in the computation of the payment of interest on such
payment date. Any payment to be made hereunder will be made at the direction of the Holder by 

  
 2 

 
wire transfer of immediately available funds to an account designated by the Holder and timely communicated to the Maker. All payments to be made by the Maker hereunder shall be non-refundable
and be made without condition or deduction for any counterclaim, defense, recoupment or setoff. 
 Section 4. Representations and
Warranties. Maker represents and warrants to Holder that: 
 (a) Maker has the corporate or other applicable power and authority to
execute, deliver and perform the terms and provisions of this Note and the Mortgage and has taken all necessary corporate or other applicable action to authorize the execution, delivery and performance by it of the Note and Mortgage. Maker has duly
executed and delivered this Note and Mortgage, and each of this Note and the Mortgage constitutes its legal, valid and binding obligation enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited
by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law).

 (b) Neither the execution, delivery or performance by Maker of this Note or the Mortgage, nor compliance by it with the terms and
provisions thereof, (i) will contravene in any material respect any applicable provision of any law, statute, rule or regulation or any order, writ, injunction or decree of any court or governmental instrumentality or (ii) will conflict
with or result in any material breach of any of the terms, covenants, conditions or provisions of, or constitute a default under any material agreement to which Maker is a party. 

Section 5. Covenants. So long as any amount under this Note shall remain unpaid, Maker will, unless the Holder consents in
writing: 
 (a) keep the Vessel in good working order and condition (ordinary wear and tear and loss or damage by casualty or condemnation
excepted) with such exceptions as would not reasonably be expected to have a Material Adverse Effect; and 
 (b) maintain with financially
sound and reputable insurance companies insurance on the Vessel in at least such amounts and against all such risks as is consistent and in accordance with normal industry practice for similarly situated insureds. 

As used herein, “Material Adverse Effect” shall mean a material adverse effect (x) on the ability of Maker to perform its payment
obligations under this Note or (y) on the property, assets, nature of assets, operations, liabilities or financial condition of AOI and its subsidiaries, taken as a whole. 

Section 6. Collateral. This Note is secured by the First Preferred Ship Mortgage, dated as of the date hereof, executed by the
Maker in favor of the Holder (as amended, restated, supplemented or otherwise modified from time to time, the “Mortgage”). 

  
 3 

 Section 7. Events of Default. For purposes of this Note, an “Event of
Default” shall be deemed to have occurred if: 
 (a) the Maker fails to pay when due on the Maturity Date the full amount of unpaid
principal and accrued interest on this Note; or 
 (b) any representation or warranty made by the Maker in this Note or the Mortgage is
false, misleading or incomplete in any material respect on or as of the date made or deemed made; or 
 (c) the Maker fails to perform or
observe any covenant, agreement or provision in this Note or the Mortgage on its part to be performed or observed and such breach remains unremedied for a period of 30 days after the earlier of notice being delivered by Holder to Maker or Maker
obtaining knowledge of such breach; or 
 (d) the Mortgage shall for any reason fail to create a valid and perfected first priority security
interest or lien in the Vessel (unless caused by the Holder), except as expressly permitted by the terms of the Mortgage, or the Mortgage shall fail to remain in full force or effect or any action shall be taken to discontinue or to assert the
invalidity or unenforceability of the Mortgage; or 
 (e) the Maker makes an assignment for the benefit of creditors; or an order, judgment
or decree is entered adjudicating the Maker bankrupt or insolvent; or any order for relief with respect to the Maker is entered under the U.S. Bankruptcy Code (or any similar debtor relief law) and the Maker consents to the order or the order is not
dismissed within 30 days after it is entered; or the Maker petitions or applies to any tribunal for the appointment of a custodian, trustee, receiver or liquidator of the Maker or of any substantial part of the assets of the Maker, or commences any
proceeding relating to the Maker under any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt, dissolution or liquidation law of any jurisdiction; or any such petition or application is filed, or any such proceeding is
commenced, against the Maker and (i) the Maker does not contest the petition, application or proceeding, or (ii) such petition, application or proceeding is not dismissed or withdrawn within 60 days after it is filed or commenced. 

Section 8. Consequences of Events of Default. Upon the occurrence and during the continuance of an Event of Default: 

(a) the Holder may, at its option, by notice in writing to the Maker, declare the entire principal amount outstanding under this Note (plus all
accrued but unpaid interest on the amounts outstanding under this Note) to be, and such principal amount of this Note shall thereupon be and become, immediately due and payable (together with all accrued but unpaid interest thereon) without
presentment, demand, protest or notice of any kind (including, without limitation and notice of acceleration), all of which are hereby waived by the Maker, or other action of any kind by the Holder; provided, that, if an Event of Default
under Section 7(e) of this Note has occurred, such acceleration shall be automatic and no notice to the Maker shall be required hereunder; and 

  
 4 

 (b) the Holder may, at its option, exercise all of its rights and remedies under applicable law
and under this Note and the Mortgage. 
 The rights and remedies of the Holder under this Note and the Mortgage shall be cumulative, and not exclusive. 

Section 9. Expenses. If the Holder expends any effort in any attempt to enforce payment of all or any part or installment of any
sum due the Holder hereunder as the result of an Event of Default, or if, as the result of an Event of Default, this Note is placed in the hands of an attorney for collection through any legal proceedings, the Maker shall pay on demand all
collection costs and fees reasonably incurred by the Holder, including reasonable and documented out-of-pocket attorneys’ fees of one counsel and, if reasonably necessary, a single local counsel in each relevant jurisdiction and with respect to
each relevant specialty. 
 Section 10. Amendment and Waiver. The provisions of this Note may not be amended or waived without
the prior written consent of the Holder and the Maker. 
 Section 11. Severability; Waiver of Notice; Assignment. Whenever
possible, each provision of this Note will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Note is held to be prohibited by or invalid under applicable law in any jurisdiction, such
provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating any other provision of this Note. To the extent permitted by law, the Maker, for itself and its successors and assigns, hereby waives
presentment, demand, notice of protest, notice of acceleration, notice of intent to accelerate and all other demands and notices, in connection with the delivery, acceptance, performance, default or enforcement of this Note. This Note shall not be
assignable by the Maker, other than to an Affiliate of AOI in connection with a transfer of the Vessel to such Affiliate, so long as such Affiliate assumes the obligations of Maker under this Note and the Mortgage (or enters into a new Mortgage). In
connection with any such assumption, the predecessor Maker will automatically be released from its obligations under this Note and the Mortgage upon the assumption of the obligations under this Note and the Mortgage (or entry into a new Mortgage) by
such Affiliate, and such Affiliate will become the Maker hereunder for all purposes hereof with the same force and effect as if originally named herein as the Maker. This Note shall not be assignable by Holder, other than to an Affiliate of Holder.
This Note shall inure to the benefit of the Holder and its successors and permitted assigns. 
 Section 12. Notices. Any notices
to be given to the Maker or the Holder under this Note shall be given in the manner, and to the address for such party, set forth below: 
  

	 	(a)	If to Maker: 

 [Alpha Admiral Company] 

c/o Atwood Oceanics, Inc. 
 Attn:
General Counsel 
 15011 Katy Freeway, Suite 800 

Houston, TX 77094 
 Fax:
832-201-7162 
 E-mail: notices@atwd.com 

  
 5 

	 	(b)	If to Holder: 

 [        ] 

[        ] 

[        ] 

[        ] 

Section 13. Intercreditor Agreement. Holder agrees to enter into an intercreditor agreement on terms reasonable to Maker and
Holder with any Person that has a lien or security interest in the Vessel or any policies and contracts of insurances relating to the Vessel and related rights that is subordinate to the Mortgage. 

Section 14. GOVERNING LAW; SUBMISSION TO JURISDICTION; WAIVER OF JURY TRIAL. 

(a) THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE OF NEW YORK. 

(b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS NOTE OR THE MORTGAGE MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK OR OF THE
UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK, IN EACH CASE WHICH ARE LOCATED IN THE COUNTY OF NEW YORK, AND, BY EXECUTION AND DELIVERY OF THIS NOTE OR THE MORTGAGE, EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY ACCEPTS FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE AFORESAID COURTS. EACH PARTY HERETO HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS LACK PERSONAL JURISDICTION OVER EACH PARTY HERETO, AND AGREES NOT TO
PLEAD OR CLAIM, IN ANY LEGAL ACTION PROCEEDING WITH RESPECT TO THIS NOTE OR THE MORTGAGE BROUGHT IN ANY OF THE AFOREMENTIONED COURTS, THAT SUCH COURTS LACK PERSONAL JURISDICTION OVER THE PARTIES HERETO. EACH PARTY HERETO FURTHER IRREVOCABLY CONSENTS
TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE PREPAID, TO EACH PARTY HERETO AT EACH ADDRESS SET FORTH IN SECTION 12 OR AT
SUCH OTHER ADDRESS OF WHICH SUCH PARTY SHALL HAVE BEEN NOTIFIED PURSUANT TO SECTION 12, SUCH SERVICE TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER
IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER THE MORTGAGE THAT SERVICE OF PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY PARTY HERETO TO
SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST ANY PARTY HERETO IN ANY OTHER JURISDICTION. 

  
 6 

 (c) EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE
TO THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS NOTE OR THE MORTGAGE BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (b) ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO
PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 

(d) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
ARISING OUT OF OR RELATING TO THIS NOTE, THE MORTGAGE OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. 
 (e) EACH OF THE PARTIES HERETO
WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LEGAL ACTION OR PROCEEDING REFERRED TO IN THIS SECTION 14 ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES. 

(f) EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY CLAIM, ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER
JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY APPLICABLE LAW. 
 Section 15. NOTICE OF FINAL
AGREEMENT. THIS WRITTEN NOTE, TOGETHER WITH THE MORTGAGE REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE OBLIGATIONS HEREUNDER AND SUBJECT MATTER HEREOF AND THEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 

Section 16. Guaranty. In connection with the execution hereof, Atwood Oceanics Pacific Limited is executing on the date hereof a
guarantee of this Note in substantially the form attached as Exhibit A (the “Guaranty”). 
 [Remainder of
Page Intentionally Left Blank; Signature Page Follows] 

  
 7 

 IN WITNESS WHEREOF, the Maker has caused this Note to be executed as of the date first above
written. 
  

			
	[ALPHA ADMIRAL COMPANY],
	as Maker
		
	By:	 	  

	Name:
	Title:

 Agreed and accepted: 

[DAEWOO SHIPBUILDING AND MARINE ENGINEERING CO., LTD.] 
  

			
	By:	 	  

		 	Name:
		 	Title:

 Signature Page—Promissory Note 

 Exhibit A 

Form of Guaranty 

 GUARANTY 

GUARANTY, dated as of
                    , 20         (this “Guaranty”), by Atwood Oceanics Pacific
Limited, a company organized and existing under the laws of the Cayman Islands (“Guarantor”), in favor of Daewoo Shipbuilding & Marine Engineering Co., Ltd. (“Builder”). 

 

	1.	Guaranty. In connection with the entry into Supplemental Agreement No. 5 dated December [•], 2016 to the Drillship Contract dated September 27, 2012 (the “Supplement”), with Alpha
Admiral Company (“Buyer”), and to induce the Builder to extend credit pursuant to that certain Promissory Note, dated as of the date hereof (the “Promissory Note”), from Buyer to Builder, Guarantor hereby
absolutely, unconditionally and irrevocably guarantees to Builder and its successors and permitted assigns, the prompt payment and performance when due of all present and future obligations of Buyer to Builder arising out of the Promissory Note
(collectively, the “Obligations”). 

  

	2.	Nature of Guaranty. This is a guarantee of payment and performance and not collection. Guarantor agrees that Builder may look to Guarantor for payment and performance of any of the Obligations, whether or not
Builder shall have proceeded against Buyer with respect to any of the Obligations. Builder shall not be obligated to file any claim relating to the Obligations in the event that Buyer becomes subject to any bankruptcy, insolvency or similar
proceeding, and the failure of Builder to so file shall not affect Guarantor’s obligations hereunder. 

  

	3.	Changes in Obligations and Agreements Relating Thereto; Merger of Buyer; Waiver of Certain Notices and Rights. Guarantor agrees that Builder may at any time and from time to time, either before or after the
maturity thereof, without notice to or further consent of Guarantor, extend the time of payment or performance of, or renew any of the Obligations, and may also make any agreement with Buyer for the extension, renewal, payment, compromise, discharge
or release thereof, in whole or in part, or for any modification of the terms thereof or of any agreement between Builder and Buyer without in any way impairing or affecting this Guaranty. If Buyer merges or consolidates with or into another entity,
loses its separate legal identity or ceases to exist, Guarantor shall nonetheless continue to be liable for the Obligations. Guarantor waives (i) notice of the acceptance of this Guaranty and of the Obligations, (ii) all requirements as to
promptness, diligence, presentment, demand for payment, performance or otherwise, filing of claims, protest, notice of dishonor and notice of any kind with respect to this Guaranty, and (iii) any requirement that Builder exhausts any right or
take any action against Buyer, any collateral security or any other person or entity, or perfect its security interest in any collateral security. 

  

	4.	No Waiver; Cumulative Rights. No failure on the part of Builder to exercise, and no delay in exercising, any right, remedy or power hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise by Builder of any right, remedy or power hereunder preclude any other or future exercise of any right, remedy or power. Each and every right, remedy and power hereby granted to Builder or allowed it by law or other agreement shall be
cumulative and not exclusive of any other, and may be exercised by Builder at any time or from time to time. 

  

	5.	Assignment. Neither this Guaranty nor any rights, interests or obligations hereunder may be assigned (except by operation of law), (i) in the case of the Guarantor, without the prior written consent of
Builder and (ii) in the case of the Builder, other than to an Affiliate (as defined in the Promissory Note) of the Builder. 

  
 Page 1 of 3 

	6.	Notices. All notices or demands on Guarantor or Builder shall be in the manner provided in Section 12 of the Promissory Note and shall be addressed as follows,: 

 

							
	To Guarantor:	  	Atwood Oceanics Pacific Limited	  		  	
		  	c/o Atwood Oceanics, Inc.	  		  	
		  	Attn: General Counsel	  		  	
		  	15011 Katy Freeway, Suite 800	  		  	
		  	Houston, TX 77094	  		  	
		  	Fax: 832-201-7162	  		  	
		  	E-mail: notices@atwd.com	  		  	
				
	To Builder:	  	  
	  		  	
		  	  
	  		  	
		  	  
	  		  	
		  	Attention:                                    
    	  		  	
		  	Fax:                                     
            	  		  	

 or to such other address or fax number as the notifying party shall have provided to the receiving party
by written notice as herein set out. 
  

	7.	Continuing Guaranty. Subject to the provisions of Section 9 hereof, this Guaranty shall become effective as of the date first above written and shall remain in full force and effect and shall inure to the
benefit of Builder, its successors and permitted assigns, and shall be binding on Guarantor, its successors and permitted assigns until all of the Obligations have been paid in full. 

 

	8.	Limitation on Obligations Guaranteed. Notwithstanding any other provision hereof, the obligations of Guarantor hereunder shall not at any time exceed an amount equal to $1.00 less than the lowest amount which
would render Guarantor’s obligations hereunder void or voidable under applicable law, including, without limitation, the Uniform Fraudulent Conveyance Act, Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the
extent applicable to the guarantee set forth herein and the obligations of Guarantor hereunder. To effectuate the foregoing, the Builder and the Guarantor hereby irrevocably agree that the Obligations of Guarantor in respect of the guarantee
hereunder at any time shall be limited to the maximum amount as will result in the Obligations of Guarantor with respect hereof not constituting a fraudulent transfer or conveyance. 

 

	9.	Termination. On the date upon which the Obligations have been paid in full, this Guaranty shall terminate and have no further force or effect. 

 

	10.	Governing Law; Submission to Jurisdiction. The Guarantor and, by its acceptance of this Guaranty, the Builder, hereby agree: 

(a) THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 

(b) IN THE EVENT OF ANY LEGAL ACTION OR PROCEEDINGS WITH RESPECT TO THIS GUARANTY, EACH OF GUARANTOR AND BUILDER HEREBY ACCEPT, IRRESPECTIVE OF
DOMICILE OR RESIDENCE, THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK OR THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT COURT OF NEW YORK AS VENUE WITH NOTICE PROVIDED IN THE MANNER SET FORTH IN SECTION 6. 

  
 Page 2 of 3 

 IN WITNESS WHEREOF, this Guaranty has been duly executed and delivered by Guarantor to Builder as
of the date first above written. 
  

			
	Guarantor:
	
	ATWOOD OCEANICS PACIFIC LIMITED
		
	By:	 	  

	Name:
	 Title:

  
 Page 3 of 3 

 Exhibit B 

[FORM OF] 
 FIRST
PREFERRED SHIP MORTGAGE 
 FIRST PREFERRED SHIP MORTGAGE (this “Mortgage”), dated the
        day of             , 20[•] by ALPHA ADMIRAL COMPANY, an exempted company incorporated in the Cayman Islands, with offices at P.O. Box
309, Ugland House, South Church Street, George Town, Grand Cayman KY1-1104, qualified as a Foreign Maritime Entity in the Marshall Islands (the “Shipowner”) and [DAEWOO SHIPBUILDING AND MARINE ENGINEERING CO., LTD.], a [•], as
mortgagee (together with any successor mortgagee, the “Mortgagee”), with offices at [•]. Except as otherwise defined herein, terms used herein and defined in the Note (as defined below) shall be used herein as therein defined.

 WHEREAS, the Shipowner is the owner of the whole of the Marshall Islands flag vessel ATWOOD ADMIRAL, Official No. [•] (the
“Vessel”) which vessel has been duly documented in the name of the Shipowner in accordance with laws of the Republic of the Marshall Islands; and 

WHEREAS, in connection with the Shipowner’s purchase of the Vessel from the Mortgagee and the Mortgagee’s financing a portion of the
purchase price thereof, the Shipowner has heretofore executed and delivered a promissory note, dated as of the date hereof, to the Mortgagee (the “Note”); 

WHEREAS, a copy of the Note is attached hereto as Exhibit A; 

WHEREAS, the Shipowner, in order to secure its obligations under the Note and the repayment of the principal and interest thereon and all
other sums of money owing to the Mortgagee by the Shipowner from time to time under the Note or this Mortgage and to secure the performance and observance of and compliance with all the covenants, terms and conditions in the Note, and in this
Mortgage contained, expressed or implied, to be performed, observed and complied with by and on the part of the Shipowner, has duly authorized the execution and delivery of this Mortgage under and pursuant to Chapter 3 of Title 47 of the Marshall
Islands Revised Code, as amended; and 
 NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, and in
order to secure the payment of all obligations under the Note according to the terms thereof and the payment of all other sums that may hereafter be secured by this Mortgage in accordance with the terms hereof and with the provisions of the Note
(all such obligations and other sums hereinafter called the “Obligations”), the Shipowner hereby covenants and agrees with the Mortgagee as follows: 

ARTICLE I 
 OBLIGATIONS
AND GRANTING CLAUSE 
 Section 1. Security for Obligations. 

This Mortgage is given as security for the Obligations. 

 Section 2. Granting Clause. 

In consideration of the premises and the additional covenants herein contained and for other good and valuable consideration, the receipt and
accuracy of which are hereby acknowledged, and for the purpose of securing as a priority in favor of the Mortgagee, the due and punctual payment and performance of the Obligations, the Shipowner has granted, conveyed, mortgaged, pledged, confirmed,
assigned, transferred and set over and by these presents does grant, convey, mortgage, pledge, confirm, assign, transfer and set over, unto the Mortgagee, and its successors and permitted assigns, the whole of the Vessel, including, without
limitation, all of the boilers, engines, machinery, masts, spars, boats, anchors, cables, chains, fuel, rigging, tackle, capstans, outfit, tools, pumps and pumping equipment, apparel, furniture, fittings, equipment, spare parts, and all other
appurtenances (including without limitation drilling masts, rotary tables, substructures, draw work, engines, pumps, blowout prevention equipment, drill pipe and drill bits) thereunto appertaining or belonging, whether now owned or hereafter
acquired, and also any and all additions, improvements, renewals and replacements hereafter made in or to the vessel or any part thereof, including all items and appurtenances aforesaid, in each case, to the extent owned by the Shipowner (the
“Collateral”). 
 TO HAVE AND TO HOLD all and singular the above mortgaged and described property unto the Mortgagee and
its successors and permitted assigns, to its and to its successors’ and permitted assigns’ own use, benefit and behoof forever. 

PROVIDED, and these presents are upon the condition, that, if the Shipowner or its successors or assigns shall pay or cause to be paid the
Obligations as and when the same shall become due and payable in accordance with the terms of the Note and this Mortgage, and all other such sums as may hereafter become secured by this Mortgage in accordance with the terms hereof, and the Shipowner
shall duly perform, observe and comply with or cause to be performed, observed, or complied with all the covenants, terms and conditions of this Mortgage and the Note expressed or implied, to be performed, then this Mortgage and the estate and
rights hereunder shall cease, determine and be void, otherwise to remain in full force and effect. 
 The Shipowner for itself, its
successors and assigns, hereby covenants, declares and agrees with the Mortgagee and its successors and assigns that the Vessel is to be held subject to the further covenants, conditions, terms and uses hereinafter set forth. 

ARTICLE II 

REPRESENTATIONS AND COVENANTS OF THE SHIPOWNER. 

The Shipowner represents, warrants, covenants and agrees with the Mortgagee as follows: 

Section 1. The Shipowner is a company duly organized and existing under the laws of the Cayman Islands and is duly qualified as a Foreign
Maritime Entity under the laws of the Marshall Islands and shall so remain during the life of this Mortgage. The Shipowner has full power and authority to own and mortgage the Vessel; has full right and entitlement to register the Vessel in its name
under the flag of the Republic of the Marshall Islands and all action necessary and required by law for the execution and delivery of this Mortgage has been duly and effectively taken. The Obligations and this Mortgage are and will be the legal,
valid and binding 

  
 2 

 
obligation of the Shipowner enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law). 

Section 2. (a) The Shipowner will pay or cause to be paid the Obligations and will observe, perform and comply with the covenants, terms
and conditions herein and in the Note, express or implied, on its part to be observed, performed or complied with. In the event of inconsistency between this Mortgage and the Note, the provisions of this Mortgage shall prevail but only to the extent
required by Marshall Islands law. 
 (b) The Obligations are in United States Dollars and the term “USD” when used
herein shall mean such United States Dollars. Notwithstanding fluctuations in the value or rate of United States Dollars in terms of gold or any other currency, all payments hereunder or otherwise in respect of the Obligations shall be payable in
terms of United States Dollars when due and in United States Dollars when paid, whether such payment is made before or after the due date. 

Section 3. The Shipowner will cause this Mortgage to be duly recorded with the Office of the Maritime Administrator, Republic of Marshall
Islands, in accordance with the provisions of Chapter 3 of the Maritime Act 1990 of the Republic of the Marshall Islands, as amended, and will otherwise comply with and satisfy all of the provisions of the Maritime Act 1990 of the Republic of the
Marshall Islands, as amended, in order to establish and maintain this Mortgage as a first preferred mortgage lien thereunder upon the Vessel and upon all renewals, replacements and improvements made in or to the same for the amount of the
Obligations. 
 Section 4. The Shipowner will not cause or permit the Vessel to be operated in any manner contrary to law, and the
Shipowner will not engage in any unlawful trade or violate any law or carry any cargo that will expose the Vessel to penalty, forfeiture or capture, and will not do, or suffer or permit to be done, anything which can or may injuriously affect the
registration or enrollment of the Vessel under the laws and regulations of the Republic of the Marshall Islands and will at all times keep the Vessel duly documented thereunder. 

Section 5. The Shipowner will pay and discharge all taxes, assessments, governmental charges or levies imposed on the Vessel or any
income or profits therefrom, in each case on a timely basis; provided that the Shipowner shall not be required to pay any such tax, assessment charge which is being contested in good faith and by proper proceedings if the Shipowner has
maintained adequate reserves with respect thereto in accordance with generally accepted accounting principles in the United States (“GAAP”). 

Section 6. The Shipowner will place, and at all times and places will retain, a properly certified copy of this Mortgage on board the
Vessel with her papers and will cause each such certified copy to be exhibited to any and all persons having business therewith which might give rise to any lien thereon other than Permitted Liens (as defined below), and to any representative of the
Mortgagee; and will place and keep prominently displayed in the chart room and in the Master’s cabin of the Vessel a framed printed notice in plain type reading as follows: 

  
 3 

 “NOTICE OF MORTGAGE 

This Vessel is covered by a First Preferred Ship Mortgage (the “Mortgage”) in favor of [DAEWOO SHIPBUILDING AND MARINE
ENGINEERING CO., LTD] as Mortgagee, under authority of Chapter 3 of the Maritime Act 1990 of the Republic of the Marshall Islands, as amended. Under the terms of said Mortgage, neither the owner, any charterer, the Master of this Vessel nor any
other person has any right, power or authority to create, incur or permit to be imposed upon this Vessel any other lien whatsoever except Permitted Liens (as defined in the Mortgage), a copy of which is available on board for inspection upon the
request of any party having business with the Vessel.” 
 As used herein, “Permitted Liens” means the following types of liens: 

(a) the lien pursuant this Mortgage; 

(b) statutory liens of landlords and carriers, warehousemen, mechanics, suppliers, materialmen, repairmen, employees, pension
plan administrators or other like liens arising in the ordinary course of business and with respect to amounts not yet delinquent or being contested in good faith or liens relating to attorney’s liens or bankers’ liens, rights of set-off
or similar rights and remedies as to deposit accounts or other funds maintained with a creditor depositary institution; 

(c) liens for taxes or assessments or governmental charges or levies (i) that are not yet delinquent, or which can
thereafter be paid without penalty, in each case such that the lien cannot be enforced or (ii) which are being contested in good faith by appropriate proceedings and for which reserves have been provided in conformity with GAAP; 

(d) liens arising by reason of any judgment, decree or order of any court so long as such lien is adequately bonded and any
appropriate legal proceedings that may have been duly initiated for the review of such judgment, decree or order shall not have been finally terminated or the period within which such proceedings may be initiated shall not have expired; 

(e) liens incurred in the ordinary course of business of the Mortgagor arising from Vessel chartering, drydocking, maintenance,
repair, refurbishment, the furnishing of supplies and bunkers to the Vessel or masters, officers’ or crews’ wages, salvage and maritime liens, in the case of each of the foregoing, (i) which were not incurred or created to secure the
payment of indebtedness and (ii) (x) for payments not more than ninety (90) days past-due, or which can thereafter be paid without penalty or (y) which are being contested in good faith by appropriate proceedings and for which
reserves have been provided in conformity with GAAP; and 
 (f) any liens subordinate to the lien pursuant to this Mortgage.

  
 4 

 Section 7. (a) The Shipowner lawfully owns and is lawfully possessed of the Vessel; and the
Shipowner does hereby warrant and will defend the title and possession thereof and to every part thereof for the benefit of the Mortgagee against the claims and demands of all Persons whomsoever. 

(b) The Shipowner may transfer ownership of the Vessel to an Affiliate, subject to the conditions set forth in the Note. 

Section 8. If a libel or complaint is filed against the Vessel or the Vessel is otherwise attached, levied upon or taken into custody by
virtue of any legal proceeding in any court, the Shipowner will, promptly after acquiring knowledge thereof, notify the Mortgagee thereof by e-mail, telex or telefax confirmed by letter, at its address, as specified in this Mortgage, and will use
commercially reasonable efforts to cause the Vessel to be released, and will promptly notify the Mortgagee thereof in the manner aforesaid. The Shipowner will notify the Mortgagee within 10 days after it has become known to the Shipowner of any
average or salvage incurred by the Vessel. 
 Section 9. (a) The Shipowner will at all times, and without cost or expense to the
Mortgagee, upgrade, maintain and preserve, or cause to be upgraded, maintained and preserved, the Vessel and all its equipment, outfit and appurtenances, tight, staunch, strong, in good condition, working order and repair and in all respects
seaworthy and fit for its intended service, and will keep the Vessel, or cause it to be kept, in such condition as will entitle the Vessel to the classification applicable for rigs of the same age and type in by DNV GL or another internationally
recognized classification society. The Vessel shall, and the Shipowner covenants that it will, at all times comply in all material respects with all applicable laws, treaties and conventions to which the Republic of the Marshall Islands is a party,
and rules and regulations issued thereunder, and shall have on board as and when required thereby valid certificates showing compliance therewith. The Shipowner will, without cost or expense to the Mortgagee, following receipt of a written request
from the Mortgagee, undertake to promptly advise and confirm to the Mortgagee of the following: 
 1. any facts or matters
which may result in or have resulted in a change, suspension, discontinuance, withdrawal or expiry of the Vessel’s class under the rules or terms and conditions of the Shipowner’s or the Vessel’s membership in the classification
society; and 
 2. the Shipowner is not in default of any of its contractual obligations or liabilities to the classification
society and, without limiting the foregoing, that it has paid in full all fees or other charges due and payable to the classification society; and 

3. if the Shipowner is in default of any of its contractual obligations or liabilities to the classification society, to
specify to the Mortgagee in reasonable detail the facts and circumstances of such default, the consequences thereof, and any remedy period agreed or allowed by the classification society. 

Notwithstanding the above undertaking given for the benefit of the Mortgagee, the Shipowner shall continue to be responsible to the
classification society for the performance and discharge of all its obligations and liabilities relating to or arising out of or in connection with the contract it has with the classification society, and nothing herein or therein shall be construed
as imposing any obligation or liability of the Mortgagee to the classification society in respect thereof. 

  
 5 

 (b) The Shipowner shall promptly notify the Mortgagee of and furnish the
Mortgagee with full information, including copies of reports and surveys, regarding any material accident or accident involving repairs where the aggregate cost is likely to exceed Fifty Million United States Dollars (USD 50,000,000) (or its
equivalent in another currency), any major damage to the Vessel, any event affecting the Vessel’s class, any occurrence in consequence whereof the Vessel has become or is likely to suffer an Event of Loss. 

Section 10. The Shipowner will not transfer or change the flag or port of documentation of the Vessel without prior notice to the
Mortgagee; provided, that if such transfer or change occurs, the Shipowner shall ensure that Mortgagee retains a first preferred mortgage over the Vessel. 

Section 11. The Shipowner shall keep the Vessel insured in accordance with the terms of the Note. 

Section 12. (a) To the extent provided for in the Note, this Mortgage shall extend to and constitute a lien upon, and the Shipowner
hereby grants the Mortgagee a security interest in, proceeds resulting from or relating to any disposition in respect of the Vessel as security for the Obligations. 

(b) The Shipowner hereby irrevocably authorizes the Mortgagee to file and record financing statements under the Uniform
Commercial Code in any jurisdiction where the same may be in force or under any legislation having similar effect for the purpose of perfecting or continuing the perfection of the security interests granted by the Shipowner to the Mortgagee herein
without obtaining the signature of the Shipowner thereto. The Shipowner hereby irrevocably authorizes the Mortgagee to execute any such financing statement or similar document in the name of the Shipowner. 

ARTICLE III 
 EVENTS OF
DEFAULT AND REMEDIES. 
 Section 1. Events of Default. Should an Event of Default occur pursuant to the terms thereof, such
event shall also, at the option of the Mortgagee, constitute an “Event of Default” hereunder. 
 Section 2. Consequences
of Events of Default. Upon the occurrence and during the continuance of an Event of Default, the security constituted by this Mortgage shall become immediately enforceable, and the enforcement remedies specified herein can be exercised
irrespective of whether or not the Mortgagee has exercised the right of acceleration under the Note or any rights under the Guaranty and the Mortgagee shall have the right, to: 

(a) By notice in writing to the Shipowner, declare all the then unpaid Obligations to be due and payable immediately, and upon
such declaration, the same shall become and be immediately due and payable; provided, however, that no 

  
 6 

 
declaration shall be required if an event of default shall have occurred by reason of a default under Section 7(e) of the Note, then and in such case, the Obligations shall become
immediately due and payable on the occurrence of such event of default without any notice or demand; 
 (b) Exercise all of
the rights and remedies in foreclosure and otherwise given to mortgagees by the provisions of the laws of the Republic of the Marshall Islands or of any other jurisdiction where the Vessel may be found; 

(c) Bring suit at law, in equity or in admiralty, as it may be advised, to recover judgment for the Obligations, and collect
the same out of any and all property of the Shipowner whether covered by this Mortgage or otherwise; 
 (d) Demand that
Shipowner shall surrender to the Mortgagee possession of the Vessel; 
 (e) The Mortgagee may hold, lay up, lease, charter,
operate or otherwise use the Vessel for such time and upon such terms as it may deem to be for its best advantage, and demand, collect and retain all day rates, hire, freights, earnings, issues, revenues, income, profits, return premiums, salvage
awards or recoveries, recoveries in general average, and all other sums due or to become due in respect of the Vessel or in respect of any insurance thereon from any person whomsoever, accounting only for the net profits, if any, arising from such
use of the Vessel and charging upon all receipts from the use of the Vessel or from the sale thereof by court proceedings or, pursuant to subsection (f) below, all reasonable and documents out-of-pocket costs, expenses, charges, damages or
losses by reason of such use; and if at any time the Mortgagee shall avail itself of the right herein given it to take the Vessel, the Mortgagee shall have the right to dock the Vessel, for a reasonable time at any dock, pier or other premises of
the Shipowner without charge, or to dock it at any other place at the cost and expense of the Shipowner; 
 (f) Take and
enter into possession of the Vessel, at any time, wherever the same may be, without legal process, and if it seems desirable to the Mortgagee and without being responsible for loss or damage, sell the Vessel, at any place and at such time as the
Mortgagee may specify and in such manner as the Mortgagee may deem advisable, free from any claim by the Shipowner in admiralty, in equity, at law or by statute, at public or private sale, by sealed bids or otherwise, by mailing, by air or
otherwise, notice of such sale, whether public or private, addressed to the Shipowner at its last known address, fourteen (14) days prior to the date fixed for entering into the contract of sale and by first publishing notice of any such public
sale for ten (10) consecutive days, in a daily newspaper of general circulation published in the City of Houston, State of Texas or if the place of sale should not be in Houston, Texas then by publication of a similar notice at or near the
place of sale; in the event that the Vessel shall be offered for sale by private sale, no newspaper publication of notice shall be required, nor notice of adjournment of sale; the sale may be held at such place and at such time as the Mortgagee by
notice may have specified, or may be adjourned by the Mortgagee from time to time by announcement at the time and place appointed for such sale or for such adjourned sale, and without further notice or publication the Mortgagee

  
 7 

 
may make any such sale at the time and place to which the same shall be so adjourned; and any sale may be conducted without bringing the Vessel to the place designated for such sale and in such
manner as the Mortgagee may deem to be for its best advantage, and the Mortgagee may become the purchaser at any sale. The Shipowner agrees that any sale made in accordance with the terms of this paragraph shall be deemed made in a commercially
reasonable manner insofar as it is concerned; 
 (g) Require that all policies, contracts, certificates of entry and other
records relating to the insurance with respect to the Vessel as required by Article II, Section 12 hereof (the “Insurances”) (including details of and correspondence concerning outstanding claims) be forthwith delivered to the
Mortgagee; and 
 (h) Collect, recover, compromise and give a good discharge for any and all monies and claims for monies
then outstanding or thereafter arising under the Insurances or in respect of the earnings or any requisition compensation and to permit any brokers through whom collection or recovery is effected to charge the usual brokerage therefor. 

Section 3. Any sale of the Vessel made in pursuance of this Mortgage, whether under the power of sale hereby granted or any judicial
proceedings, shall operate to divest all right, title and interest of any nature whatsoever of the Shipowner therein and thereto, and shall bar the Shipowner, its successors and assigns, and all persons claiming by, through or under it. No purchaser
shall be bound to inquire whether notice has been given, or whether any default has occurred, or as to the propriety of the sale, or as to the application of the proceeds thereof. In case of any such sale, the Mortgagee, if it is the purchaser,
shall be entitled for the purpose of making settlement or payment for the property purchased to use and apply the Obligations in order that there may be credited against the amount remaining due and unpaid thereon the sums payable out of the net
proceeds of such sale to the Mortgagee after allowing for the costs and expense of sale and other charges; and thereupon such purchaser shall be credited, on account of such purchase price, with the net proceeds that shall have been so credited upon
the Obligations. At any such sale, the Mortgagee may bid for and purchase such property and upon compliance with the terms of sale may hold, retain and dispose of such property without further accountability therefor. 

Section 4. The Mortgagee is hereby irrevocably appointed attorney-in-fact of the Shipowner, during the continuation of any Event of
Default, to execute and deliver to any purchaser aforesaid, and is hereby vested with full power and authority to make, in the name and in behalf of the Shipowner, a good conveyance of the title to the Vessel so sold. In the event of any sale of the
Vessel, under any power herein contained, the Shipowner will, if and when required by the Mortgagee, execute such form of conveyance of the Vessel as the Mortgagee may direct or approve. 

Section 5. Whenever any right to enter and take possession of the Vessel accrues to the Mortgagee, it may require the Shipowner to
deliver, and the Shipowner shall on demand deliver to the Mortgagee the Vessel to a location designated by the Mortgagee as demanded. If the Mortgagee shall be entitled to take any legal proceedings to enforce any right under this Mortgage, the
Mortgagee shall be entitled as a matter of right to the appointment of a receiver of the Vessel and of the day rates, freights, hire, earnings, issues, revenues, income and profits due or to become due and arising from the operation thereof. 

  
 8 

 Section 6. During the continuation of any Event of Default, the Shipowner authorizes and
empowers the Mortgagee or its appointees or any of them to appear in the name of the Shipowner, its successors and assigns, in any court of any country or nation of the world where a suit is pending against the Vessel because of or on account of any
alleged lien against the Vessel from which the Vessel has not been released, and to take such proceedings as to them or any of them may seem proper towards the defense of such suit and the purchase or discharge of such lien, and all expenditures
made or incurred by them or any of them for the purpose of such defense or purchase or discharge shall be a debt due from the Shipowner, its successors and assigns, to the Mortgagee, and shall be secured by the lien of this Mortgage in like manner
and extent as if the amount and description thereof were written herein. 
 Section 7. The Shipowner covenants that upon the happening
of any Event of Default, then, upon written demand of the Mortgagee, the Shipowner will pay to the Mortgagee the whole amount due and payable in respect of the Obligations; and in case the Shipowner shall fail to pay the same forthwith upon such
demand, the Mortgagee shall be entitled to recover judgment for the whole amount so due and unpaid, together with such further amounts as shall be sufficient to cover the reasonable compensation to the Mortgagee’s agents, attorneys and counsel
and any necessary advances, expenses and liabilities made or incurred by it or the Mortgagee hereunder, in each case, as required by Section 9 of the Note. All moneys collected by the Mortgagee under this Article II, Section 7 shall be
applied by the Mortgagee in accordance with Article II, Section 11. 
 Section 8. Each and every power and remedy herein given to
the Mortgagee shall be cumulative and shall be in addition to every other power and remedy herein given or now or hereafter existing at law, in equity, in admiralty or by statute, and each and every power and remedy whether herein given or otherwise
existing may be exercised from time to time and as often and in such order as may be deemed expedient by the Mortgagee, and the exercise or the beginning of the exercise of any power or remedy shall not be construed to be a waiver of the right to
exercise at the same time or thereafter any other power or remedy. The Mortgagee shall not be required or bound to enforce any of its rights under the Note prior to enforcing its rights under this Mortgage. No delay or omission by the Mortgagee in
the exercise of any right or power or in the pursuance of any remedy accruing upon any Event of Default shall impair any such right, power or remedy or be construed to be a waiver of any such Event of Default or to be an acquiescence therein; nor
shall the acceptance by the Mortgagee of any security or of any payment of or on account of the Obligations maturing after any Event of Default or of any payment on account of any past Event of Default be construed to be a waiver of any right to
exercise its remedies due to any future Event of Default or of any past Event of Default not completely cured thereby. No consent, waiver or approval of the Mortgagee shall be deemed to be effective unless in writing and duly signed by authorized
signatories of the Mortgagee; any waiver by the Mortgagee of any of the terms of this Mortgage or any consent given under this Mortgage shall only be effective for the purpose and on the terms which it is given and shall be without prejudice to the
right to give or withhold consent in relation to future matters (which are either the same or different). 

  
 9 

 Section 9. If at any time after an Event of Default and prior to the actual sale of the
Collateral by the Mortgagee or prior to any enforcement or foreclosure proceedings, the Shipowner offers completely to cure all Events of Default and to pay all reasonable expenses, advances and damages to the Mortgagee consequent on such Events of
Default, then the Mortgagee must accept such offer and payment and restore the Shipowner to its former position, but such action, if taken, shall not affect any subsequent event of default or impair any rights consequent thereon. 

Section 10. In case the Mortgagee shall have proceeded to enforce any right, power or remedy under this Mortgage by foreclosure, entry or
otherwise, and such proceedings shall have been discontinued or abandoned for any reason or shall have been determined adversely to the Mortgagee, then and in every such case the Shipowner and the Mortgagee shall be restored to their former
positions and rights hereunder with respect to the property subject or intended to be subject to this Mortgage, and all rights, remedies and powers of the Mortgagee shall continue as if no such proceedings had been taken. 

Section 11. (a) The proceeds of any sale of the Collateral and the net earnings of any charter operation or other use of the Vessel and
any and all other moneys received by the Mortgagee pursuant to or under the terms of this Mortgage or in any proceedings hereunder, the application of which has not elsewhere herein been specifically provided for, shall be applied: 

first, to the payment of all indemnities and expenses payable to the Mortgagee under the Notes and this Mortgage; 

second, to all accrued and unpaid interest on the principal of the Note; 

third, to the outstanding principal amount under the Note; and 

fourth, the balance, if any, to the Shipowner or such other Person as may be legally entitled thereto. 

(b) To the extent the proceeds of the sale of the Collateral are not sufficient to pay the aggregate amount of the Obligations,
the Shipowner shall remain liable for such deficiency. Without limiting the generality of the foregoing, the rights and remedies of the Mortgagee under this Mortgage and the other agreements, documents and instruments securing or guarantying any of
the Obligations shall be cumulative, and the exercise or partial exercise of any such right or remedy shall not preclude the exercise of any right or remedy. 

Section 12. Until one or more Events of Default shall happen and be continuing, the Shipowner (a) shall be suffered and permitted to
retain actual possession and use of the Collateral and (b) shall have the right, from time to time, in its discretion, and without application to this Mortgagee, and without obtaining a release thereof by the Mortgagee, to dispose of, free from
the lien hereof, any boilers, engines, machinery, masts, spars, sails, rigging, boats, anchors, chains, tackle, apparel, furniture, fittings or equipment or any other appurtenances of the Vessel that are no longer useful, necessary, profitable or
advantageous in the operation of the Vessel, promptly replacing the same (except to the extent that, individually or in the aggregate, any removal shall not materially diminish the value of the Vessel) by new boilers, engines, machinery, masts,
spars, sails, rigging, boats, anchors, chains, tackle, apparel, furniture, fittings, equipment, or other appurtenances of substantially equal value to the Shipowner, which shall forthwith become subject to the lien of this Mortgage as a preferred
mortgage thereon. 

  
 10 

 Section 13. (a) If any provision of this Mortgage should be deemed invalid or shall be
deemed to affect adversely the preferred status of this Mortgage under any applicable law, such provision shall cease to be a part of this Mortgage without affecting the remaining provisions, which shall remain in full force and effect. 

(b) In the event that the Note or this Mortgage, or any of the documents or instruments which may from time to time be
delivered hereunder or thereunder or any provision hereof or thereof shall be deemed invalidated by present or future law of any nation or by decision of any court, or if any third party shall fail or refuse to recognize any of the powers granted to
the Mortgagee hereunder when it is sought to exercise them, this shall not affect the validity or enforceability of all or any other parts of the Note or this Mortgage or such documents or instruments and, in any such case, the Shipowner covenants
and agrees that, on demand, it will execute and deliver such other and further agreements, documents and instruments and do such things as the Mortgagee may reasonably deem to be necessary to carry out the true intent of this Mortgage and the Note.

 (c) Anything herein to the contrary notwithstanding, it is intended that nothing herein shall waive the preferred status
of this Mortgage and that, if any provision or portion thereof herein shall be construed to waive the preferred status of this Mortgage, then such provision to such extent shall be void and of no effect. 

(d) In the event that the title, or ownership of the Vessel shall be requisitioned, purchased or taken by any government of any
country or any department, agency or representative thereof, pursuant to any present or future law, proclamation, decree order or otherwise, the lien of this Mortgage shall be deemed to attach to the claim for compensation therefor, and the
compensation, purchase or other taking of such title or ownership is hereby agreed to be payable to the Mortgagee who shall be entitled to receive the same and shall apply it as provided in Section 11(a) of this Article III. In the event of any
such requisition, purchase or taking, and the failure of the Mortgagee to receive proceeds as herein provided, the Shipowner shall promptly execute and deliver to the Mortgagee such documents, if any, as in the opinion of the Mortgagee may be
necessary or useful to facilitate or expedite the collection by the Mortgagee of such part of the compensation, purchase price, reimbursement or award as is payable to it hereunder. 

Section 14. In the event of any legal proceedings, the Shipowner accepts for itself and subsequent owners of the Vessel, irrespective of
domicile or residence, the nonexclusive jurisdiction of the Courts of the State of New York or the United States District Court of the Southern District Court of New York as venue with notice provided in the manner set forth in Section 14(b) of
the Note. 

  
 11 

 ARTICLE IV 

SUNDRY PROVISIONS 

Section 1. This Mortgage shall not be assignable by Mortgagee, other than to an Affiliate of Mortgagee. All of the covenants, promises,
stipulations and agreements of the Shipowner in this Mortgage contained shall bind the Shipowner and its successors and assigns and shall inure to the benefit of the Mortgagee and its respective successors and permitted assigns. In the event of any
assignment or transfer of this Mortgage, the term “Mortgagee”, as used in this Mortgage, shall be deemed to mean any such permitted assignee or transferee.1 

Section 2. Wherever and whenever herein any right, power or authority is granted or given to the Mortgagee, such right, power or authority
may be exercised in all cases by the Mortgagee or such agent or agents as it may appoint, and the act or acts of such agent or agents when taken shall constitute the act of the Mortgagee hereunder. 

Section 3. Any notice or other communication to be given pursuant hereto shall be in the manner provided in Section 12 of the Note
and addressed as provided therein. 
 Section 4. Except as provided in Section 6 of this Article IV or with the prior consent of
the Mortgagee and the Shipowner, none of the terms and conditions of this Mortgage may be changed, waived, modified or varied in any manner whatsoever. 

Section 5. (a) After the Obligations have been paid in full, this Mortgage and the security interest created hereby shall automatically
terminate, and the Mortgagee, at the request and expense of the Shipowner, will execute and deliver to the Shipowner a proper instrument or instruments acknowledging the satisfaction and termination of this Mortgage, and will duly release (without
recourse and without any representation or warranty) the Collateral, together with any monies at the time held by the Mortgagee or any of its sub-agents hereunder. 

(b) In the event that the Collateral is sold or otherwise disposed of in connection with a sale or other disposition permitted
by the Note or is otherwise released with the consent of the Mortgagee and the proceeds of such sale or other disposition or from such release are applied in accordance with the provisions of the Mortgage to the extent required to be so applied, the
Mortgagee will duly release, without recourse and without any representation or warranty, the Collateral from this Mortgage. 

(c) At any time that the Shipowner desires that the Mortgagee release the Collateral as provided in Section 6(a) or
(b) of Article IV hereof, the Shipowner shall deliver to the Mortgagee a certificate signed by an authorized officer of the Shipowner stating that the release of the Collateral is permitted pursuant to such Section 6(a) or (b). 

Section 6. The Recitals Clauses and the Granting Clause of this Mortgage are incorporated in and are made a part of this Mortgage. 

 
  

	1 	NTD: See Note. 

  
 12 

 Section 7. For the purpose of recording this Mortgage as required by Chapter 3 of the
Maritime Act of 1990 of the Republic of the Marshall Islands, as amended, the total principal amount of direct and contingent obligations secured by this Mortgage is [            ] United
States Dollars (US$ [            ])[•]2, and interest, expenses and performance of mortgage covenants. The discharge amount is the
same as the total amount. It is not intended that this Mortgage shall include property other than the Collateral and it shall not include property other than the Collateral as the term “vessel” is used in the Chapter 3 of the Maritime Act
of 1990 of the Republic of the Marshall Islands, as amended. Notwithstanding the foregoing, for property other than the Collateral, if any should be determined to be covered by this Mortgage, the discharge amount is zero point zero one percent
(0.01%) of the total amount. 
 Section 8. THIS MORTGAGE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE
REPUBLIC OF THE MARSHALL ISLANDS. 
 Section 9. Further Assurances. The Shipowner shall execute and do all such assurances, acts
and things as the Mortgagee, or any receiver in its absolute discretion may require for: 
 (a) perfecting or protecting the
security created (or intended to be created) by this Mortgage; or 
 (b) preserving or protecting any of the rights of the
Mortgagee under this Mortgage (or any of them); or 
 (c) ensuring that the security constituted by this Mortgage and the
covenants and obligations of the Shipowner under this Mortgage shall enure to the benefit of assignees of the Mortgagee (or any of them); or 

(d) facilitating the appropriation or realization of the Vessel or any part thereof and enforcing the security constituted by
this Mortgage on or at any time after the same shall have become enforceable; or 
 (e) the exercise of any power, authority
or discretion vested in the Mortgagee under this Mortgage, 
 in any such case, forthwith upon written demand by the Mortgagee. 

Section 10. Additional Rights of the Mortgagee. In the event the Mortgagee shall be entitled to exercise any of its remedies under
Article III hereof, the Mortgagee shall have the right to arrest and take action against the Vessel at whatever place the Vessel shall be found lying and for the purpose of any action which the Mortgagee may bring before the Courts of such
jurisdiction or other judicial authority and for the purpose of any action which the Mortgagee may bring against the Vessel, any writ, notice, judgment or other legal process or documents may (without prejudice to any other method of service under
applicable law) be served upon the Master of the Vessel (or upon anyone acting as the Master) and such service shall be deemed good service on the Shipowner for all purposes. 
  

 

	2 	To match the principal amount of the Note. 

  
 13 

 IN WITNESS WHEREOF, the Shipowner has caused this Mortgage to be duly executed the day and year
first above written. 
  

			
	ALPHA ADMIRAL COMPANY,
	as Shipowner
		
	By:	 	  

	[Name:	 	Walter A. Baker
	Title:	 	Director]

 ACKNOWLEDGEMENT 
  

					
	STATE OF TEXAS	  	§	  	
			
	COUNTY OF HARRIS	  	§	  	

 On this          day of
                    , 2016, before me personally appeared [Walter A. Baker], on behalf of ALPHA ADMIRAL COMPANY, and who has executed the foregoing
instrument on behalf of said company and declared to me that he/she signed his/her name thereto by authority of the Board of Directors of said company and as the free act and deed of such company, and that his/her signature on said instrument is
authentic. 
  

	
	Notary Public

  
 14 

 ANNEX A TO 

FIRST PREFERRED SHIP MORTGAGE 

NOTE 

  
 A-1 

 Exhibit C 

ALPHA ADMIRAL COMPANY 

ASSIGNMENT OF INSURANCES 

[            ], 20[    ] 

1. ALPHA ADMIRAL COMPANY, a company organized and existing under the laws of the Cayman Islands (the “Assignor”), in
consideration of the Holder referred to therein entering into the transactions described in the Promissory Note (as defined below), and for Ten Dollars (USD 10.00) lawful money of the United States of America, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, as the owner of the whole of the Marshall Islands flag vessel ATWOOD ADMIRAL, Official No. [            ] (the
“Vessel”) has collaterally assigned and by this instrument does hereby collaterally assign and grants a security interest to DAEWOO SHIPBUILDING AND MARINE ENGINEERING CO., LTD., as Holder, and its successors and permitted assigns
(the “Assignee”), in and to, all right, title and interest of the Assignor under, in and to (i) all policies and contracts of insurance from time to time taken out by or on behalf of the Assignor insuring physical damage to the
Vessel, including but not limited to (1) hull and machinery (including hull interest insurance, increased value insurance and freight interest insurances, if any) and (2) war risk, (ii) all claims, returns of premium and other monies
and claims for monies due and to become due under said insurances or in respect of said insurances, (iii) all other rights of the Assignor under or in respect of said insurances and (iv) any proceeds of any of the foregoing (collectively,
the “Insurances”) and (v) any compensation paid or payable by a government entity for the requisition for title, confiscation or compulsory acquisition of the Vessel (“Requisition Compensation”). Terms used
herein and not otherwise defined herein shall be used as defined in the Promissory Note, dated as of the date hereof (as amended, amended and restated, modified or supplemented from time to time, the “Promissory Note”) from Assignor
to Assignee. 
 2. The Assignor has executed and delivered the Promissory Note, and the Assignor has granted the Assignee a First Preferred
Ship Mortgage (the “Mortgage”) on the Vessel to secure its obligations under the Promissory Note. This Assignment of Insurances (this “Assignment”) is given as security for all amounts due and to become due to the
Assignee under the Promissory Note (the “Obligations”). 
 3. It is expressly agreed that anything herein contained to the
contrary notwithstanding, the Assignor shall remain liable under the Insurances to perform all of the respective obligations assumed thereunder and the Assignee shall have no obligation or liability whatsoever under the Insurances by reason of or
arising out of this Assignment nor shall the Assignee be required or obligated in any manner to perform or fulfill any obligations of the Assignor under or pursuant to the Insurances or to make any payment or to make any inquiry as to the nature or
sufficiency of any payment received by it or to present or file any claim, or to take any other action to collect or enforce the payment of any amounts which may have been assigned to it or to which it may be entitled hereunder at any time or times.

 4. The Assignor does hereby constitute the Assignee, its successors and permitted assigns, the Assignor’s true and lawful attorney,
irrevocably, with full power (in the name of the 

 
Assignor or otherwise), upon the occurrence and continuance of an Event of Default or an Event of Loss, to ask, require, demand, receive compound and give acquittance for any and all monies and
claims for monies due and to become due under or arising out of the Insurances, to endorse any checks or other instruments or orders in connection therewith and to file any claims or to take any action or institute any proceedings which the Assignee
may deem to be necessary or advisable in the premises. 
 5. The Assignor hereby covenants and agrees to procure that notice of this
Assignment, substantially in the form of Schedule 1 attached hereto, shall be duly given to all underwriters, and that it shall request that there shall be duly endorsed upon all slips, cover notes, policies, certificates of entry or other
instruments issued or to be issued in connection with the Insurances assigned hereby, clauses as to loss payee as its interests may appear substantially in the form set out in Schedule 2 attached hereto or in the event of a material change from such
form, as the Assignee may consent to or approve in writing. In all cases, unless otherwise agreed to in writing by the Assignee, such slips, cover notes, notices, certificates of entry or other instruments shall show the Assignee as a loss payee as
its interests may appear and shall provide that there will be no recourse against the Assignee for payment of premiums, calls or assessments. 

6. (a) Any monies collected or received by the Assignee hereunder in respect of an Event of Loss shall be applied by the Assignee in the
manner provided in Article III, Section 11 of the Mortgage. 
 (b) Absent an Event of Loss, all moneys collected or received by the
Assignor pursuant to this Assignment (other than Requisition Compensation) shall be applied to the reimbursement for repair and/or replacement of damaged property of the Vessel and for other covered expenses under the Insurances. 

7. The Assignor does hereby warrant and represent that it has not assigned or pledged, and hereby covenants that, without the prior written
consent thereto of the Assignee, so long as this Assignment shall remain in effect, it will not assign or pledge the whole or any part of the right, title and interest hereby assigned to anyone other than the Assignee, its successors or assigns, and
it will not take or omit to take any action, the taking or omission of which might result in an alteration or impairment of the Insurances, of this Assignment or of any of the rights created by the Insurances or this Assignment; provided, however,
this clause shall not limit or prohibit in any way the Assignor from (i) naming other Persons as additional assureds under policies of Insurance as their interests may appear, but such claims shall at all times be subordinated to the interest
of the Assignee hereunder and consistent with the Loss Payable Clause attached as Schedule 2 hereto and (ii) assigning or pledging the whole or any part of the right, title and interest hereby assigned, to any other Person, so long as the liens
and interests of such other Person are subordinate to this Assignment. 
 8. All notices, requests, consents, demands, and other
communications provided for or permitted hereunder shall be in the manner provided in Section 12 of the Promissory Note and addressed as provided therein. 

  
 2 

 9. Any payments made pursuant to the terms hereof shall be made to the Assignee to such account
or accounts as may, from time to time be designated by the Assignee or as the Assignee may otherwise instruct. 
 10. Except as provided in
Section 11 of this Assignment, none of the terms and conditions of this Assignment may be changed, waived, modified or varied in any manner whatsoever without the prior written consent of the Assignor and the Assignee. 

11. (a) After the Termination Date (as defined below), this Assignment and the security interest created hereby shall automatically terminate,
and the Assignee, at the request and expense of the Assignor, will execute and deliver to the Assignor a proper instrument or instruments acknowledging the satisfaction and termination of this Assignment, and will duly release (without recourse and
without any representation or warranty) the Insurances as have not theretofore been released pursuant to this Assignment, together with any monies at the time held by the Assignee or any of its sub-agents
hereunder. As used in this Assignment, “Termination Date” shall mean (i) the date upon which the Obligations have been paid in full or (ii) the date upon which a permitted assignee of the Assignor enters into a new
Assignment pursuant to Section 13. 
 (b) At any time that the Assignor desires that the Assignee release the Insurances as provided in
Section 11(a) hereof, the Assignor shall deliver to the Assignee a certificate signed by an authorized officer of the Assignor stating that the release of the Insurances is permitted pursuant to such Section 11(a). 

12. (a) THIS ASSIGNMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS
OF THE STATE OF NEW YORK. 
 (b) IN THE EVENT OF ANY LEGAL ACTION OR PROCEEDINGS WITH RESPECT TO THIS ASSIGNMENT, THE PARTIES HERETO HEREBY
ACCEPT, IRRESPECTIVE OF DOMICILE OR RESIDENCE, THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK OR THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT COURT OF NEW YORK AS VENUE WITH NOTICE PROVIDED IN THE MANNER SET FORTH
IN SECTION 14(B) OF THE NOTE. 
 13. The Assignor may transfer ownership of the Vessel to an Affiliate of Atwood Oceanics, Inc. provided
that (i) such Affiliate assumes the Obligations and assumes the Assignor’s obligations under this Assignment (or enters into a new Assignment) on terms and conditions acceptable to the Assignee and (ii) the assumption of this
Assignment (or the entry into a new Assignment) is evidenced by all filings required by the Uniform Commercial Code of the State of New York. 

14. This Assignment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which
counterparts when executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. Delivery of an executed counterpart of this Assignment by facsimile transmission or by electronic mail in .pdf
form shall be as effective as delivery of a manually executed counterpart hereof. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 3 

 IN WITNESS WHEREOF, the Assignor has caused this Assignment to be duly executed as of the date
first written above. 
  

			
	ALPHA ADMIRAL COMPANY
		
	By:	 	  

		 	Name:
		 	Title:

  
 [SIGNATURE
PAGE TO ASSIGNMENT OF INSURANCES (ALPHA ADMIRAL)] 

 
			
	 DAEWOO SHIPBUILDING AND MARINE

ENGINEERING CO., LTD.

		
	By:	 	  

	Name:	 	
	Title:	 	

  
 [SIGNATURE
PAGE TO ASSIGNMENT OF INSURANCES (ALPHA ADMIRAL)] 

 SCHEDULE 1 TO ASSIGNMENT OF INSURANCES 

NOTICE OF ASSIGNMENT OF INSURANCE 

PLEASE TAKE NOTICE that the undersigned, the owner of the whole of the Marshall Islands flag vessel ATWOOD ADMIRAL, Official No.
[            ] (the “Vessel”), has collaterally assigned all of its right, title and interest in and to all insurances (including hull and machinery (including hull
interest insurance, increased value insurance and freight interest insurances, if any) and war risk) insuring physical damage to the Vessel to DAEWOO SHIPBUILDING AND MARINE ENGINEERING CO., LTD, as Assignee under an Assignment of Insurances dated
[            ], 20[    ]. This Notice of Assignment and the applicable loss payable clause in the form hereto attached as Annex I are to be endorsed on all policies and
certificates of entry evidencing such insurance. 
 DATED:             ,
20[    ]. 
  

			
	ALPHA ADMIRAL COMPANY
		
	By:	 	  

	Name:	 	
	Title:	 	

 SCHEDULE 2 TO ASSIGNMENT OF INSURANCES 

LOSS PAYABLE CLAUSE 

Loss, if any, payable to DAEWOO SHIPBUILDING AND MARINE ENGINEERING CO., LTD. (the “Mortgagee”), for distribution by the
Mortgagee to itself and to ALPHA ADMIRAL COMPANY, as owner (the “Owner”), as their respective interests may appear, or order, except that, unless the underwriters have been notified by the Mortgagee that an Event of Default has
occurred, in the case of any loss involving any damage to the Vessel, the underwriters may pay directly for the repair, salvage, liability or other charges involved, or if the Owner or bareboat charterer of the Vessel shall have first fully repaired
the damage and paid the cost thereof, or discharged the liability or paid all of the salvage or other charges, then the underwriters may pay the Owner as reimbursement therefor; provided, however, that if such damage involves a loss in excess of
U.S.$50,000,000 or its equivalent, the underwriters shall not make such payment without first obtaining the written consent thereto of the Mortgagee (not to be unreasonably withheld, conditioned or delayed if no Event of Default exists and such
proceeds are to be used for the repair and/or replacement of damaged property and for other covered expenses). 
 In the event of an actual
or constructive total loss or a compromised or arranged total loss or requisition of title, all insurance payments therefor shall be paid to the Mortgagee, for distribution by it in accordance with the terms of the Marshall Islands First Preferred
Ship Mortgage relating to the Vessel.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00264-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00264-of-00352.parquet"}]]