Document:

Exhibit 10.1

 

COOPERATION AND SUPPORT AGREEMENT

 

This Cooperation and
Support Agreement (this “Agreement”) is made and entered into as of
January 24, 2020, by and between Valaris plc, a public limited company incorporated under the laws of England and Wales (the “Company”),
and Luminus Management, LLC, a limited liability company organized under the laws of Delaware (together with its Affiliates (as
hereinafter defined), “Investor”) (each of the Company and Investor,
a “Party” to this Agreement, and collectively, the “Parties”).

 

RECITALS

 

WHEREAS, as of the
date hereof, Investor is deemed to beneficially own 36,982,076 shares of the Company’s Class A ordinary shares, par value
$0.40 per share (the “Ordinary Shares”); and

 

WHEREAS, as of the
date hereof, the Company and Investor have determined that it is in their respective best interests to come to an agreement to
modify the composition of the Company’s board of directors (the “Board”)
and as to certain other matters, as provided herein.

 

NOW, THEREFORE, in
consideration of the foregoing premises and the mutual covenants and agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound hereby,
agree as follows:

 

		1.	Board Matters and Related Agreements.

 

(a)           New Director. The Company hereby agrees that, effective five (5) business days following the issuance of the Company
8-K (as hereinafter defined) announcing the entry into this Agreement, the Board and all applicable committees thereof shall take
all necessary actions to appoint Adam Weitzman, as representative of Investor (the “Investor
Affiliated Director”) as a director of the Company. Satisfactory completion of customary background checks and
the Company’s standard directors and officers questionnaire for the Investor Affiliated Director shall have been completed
prior to the date hereof. Simultaneously with the appointment of the Investor Affiliated Director to the Board, the size of the
Board shall be increased to not more than twelve (12) directors. The Board, based on information provided by Investor and the Investor
Affiliated Director, has determined that the Investor Affiliated Director would (i) qualify as an “independent director”
under the applicable rules of The New York Stock Exchange (“NYSE”)
and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”)
and (ii) satisfy the guidelines and policies with respect to service on the Board applicable to all non-management directors (including
the requirements set forth in clauses (iii)-(iv) of Section 1(g) hereof).

 

(b)           2020 Annual General Meetings. The Board and all applicable committees thereof shall take all necessary actions (to
the extent within their capacity and control) so that the Investor Affiliated Director, Frederick Arnold and Georges Lambert (or
any applicable replacement therefore) (collectively, the “New Directors”) shall stand for election as directors
at the Company’s 2020 annual general meeting of shareholders (the “2020 Annual General Meeting”). The
Company agrees that its slate of nominees for election as directors of the Company at the 2020 Annual General Meeting will consist
of not more than eleven (11) director nominees, including each of the New Directors. The Company agrees to recommend, support and
solicit proxies for the election of each of the New Directors at the 2020 Annual General Meeting in the same manner and to the
same extent as for the Company’s other nominees.

 

(c)           Board Size.

 

(i)            Notwithstanding anything to the contrary herein,

 

     

     

    

 

(A)          the
Company agrees that following the appointment of the Investor Affiliated Director and until a date that is not later than the conclusion
of the 2020 Annual General Meeting, the size of the Board shall be no more than twelve (12) directors. Not later than the conclusion
of the 2020 Annual General Meeting and during the Standstill Period (as hereinafter defined), the Board and all applicable committees
thereof shall take all necessary actions to decrease the size of the Board from not more than twelve (12) to not more than eleven
(11) directors; and

 

(B)           Following
the conclusion of the 2020 Annual General Meeting and during the Standstill Period, the Company agrees that the size of the Board
shall not be increased above eleven (11) directors without unanimous Board consent.

 

(ii)           For the avoidance of doubt, nothing contained in Sections 1(a)-(c) shall in any way limit the Board’s ability
to effect a direction given to the Board by the Company’s shareholders pursuant to a resolution
passed at a shareholder meeting, it being understood that the Board shall not directly or indirectly solicit, sanction or support
any shareholder direction that would reasonably be expected to impact the obligations contained in Sections 1(a)-(c).

 

(d)           Standing Committees Appointments. In addition to appointments made to the Finance Committee as provided for under
Section 1(e) hereof, the Company agrees that the Board and all applicable committees thereof shall take all necessary actions
to appoint each New Director to at least one (1) of the Board’s standing committees as appropriate in accordance with applicable
regulatory requirements, the Board’s ordinary course appointment process and such New Director’s experience and skill
set. In furtherance of the foregoing sentence, the Investor Affiliated Director shall in any event be appointed to the Compensation
Committee and, subject to Section 1(g)(iii), shall serve until such Investor Affiliated Director’s earlier death,
resignation or removal. The Investor Affiliated Director shall be invited to attend all meetings of standing committees of which
he is not a member in a non-voting capacity, except where the committee chairperson determines that there is a specific reason
to limit attendance at the meeting in accordance with the Company’s Articles of Association, Corporate Governance Policy
or applicable committee charter and subject to Section 1(g)(v) hereof.

 

(e)           Finance Committee.

 

(i)                            Concurrently with his appointment to the Board, the Investor Affiliated Director shall be appointed to the Finance Committee
of the Board (the “Finance Committee”).

 

(ii)                           Until at least December 31, 2020, the Finance Committee shall have four (4) members, consisting of the three (3) New Directors
(or any replacement therefor) and one (1) other independent director; provided, however, that, following the appointment
of the Investor Affiliated Director to the Board, there will be a transition period during which the Finance Committee may have
five (5) members, which transition period shall in no event continue beyond the conclusion of the 2020 Annual General Meeting.
Attached as Exhibit A hereto is the charter of the Finance Committee (the “Finance Committee Charter”).

 

(iii)                          In the case of a resignation of a member of the Finance Committee: (A) if the resignation was by a director who is not a
New Director, the replacement will be determined by vote of a majority of the Board, or (B) if the resignation was by a New Director
(in the case of the Investor Affiliated Director, other than a resignation made pursuant to Section 1(g)(iii)), the replacement
shall be the applicable Replacement Director (as hereinafter defined) subject to the terms of Section 1(f) hereof.

 

(iv)                          As soon as practicable following the execution of this Agreement, with the Company using reasonable best efforts to execute
such agreement not later than two (2) weeks following the execution of this Agreement, the Finance Committee shall engage Torque
Point Advisors, LLC (“Torque Point”), as a financial advisor to the Finance Committee, for a minimum term of
one (1) year, subject to customary and commercially reasonable terms and conditions; provided that if, prior to the end
of such one (1) year term, (x) Torque Point terminates its engagement (other than following a material breach of the engagement
letter by the Company which remains uncured) or (y) the Company terminates Torque Point’s engagement because of a material
breach of the engagement letter by Torque Point which remains uncured, then the Company shall have fully complied with its obligations
under this Section 1(e)(iv). Such engagement letter shall contain a customary “key man” provision relating to
Richard Katz. Torque Point shall report to the Finance Committee and shall, at a minimum, provide advice, recommendations, plans
and strategies with respect to the “Capital Structure Activities” (as defined in the Finance Committee Charter). Additional
services may be requested by the Chair of the Finance Committee. The Company shall cooperate with Torque Point as it executes its
advisory services and shall provide Torque Point with access to management, records and other Company advisors as is reasonably
required to fulfill such services, and in a manner similar to the access the Company provides to its other advisors. Any additional
access will be granted as deemed appropriate and reasonably necessary by the Chair of the Finance Committee. The Finance Committee
shall determine whether to extend Torque Point’s engagement at the end of the initial term of the engagement.

 

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(v)                           The CEO of the Company and the Chairman of the Board shall be invited to attend all meetings of the Finance Committee in
an ex officio non-voting capacity.

 

(vi)                          The Finance Committee shall use diligent efforts to make any additional recommendations to the Board regarding Capital Structure
Activities as soon as practicable.

 

(f)            Replacement Rights.

 

(i)                            During the Standstill Period, if the Investor Affiliated Director is unable or unwilling to serve as a director (or becomes
unaffiliated with Investor), resigns as a director (other than a resignation made pursuant to Section 1(g)(iii)), is removed
as a director prior to the expiration of the Standstill Period, and at such time a Minimum Ownership
Event (as hereinafter defined) has not occurred and Investor has not committed a material breach of this Agreement, Investor
shall have the ability to name a replacement director, subject to the consent of the Company, not to be unreasonably withheld (any
such replacement director shall be referred to as the “Investor Replacement Director”). Any Investor Replacement
Director named by Investor shall be required to (A) qualify as an “independent director” under the applicable rules
of NYSE and the rules and regulations of the SEC and (B) satisfy the guidelines and policies with respect to service on the Board
applicable to all non-management directors. Subject to applicable rules of NYSE and the rules and regulations of the SEC, the Board
and all applicable committees thereof shall take all necessary actions to appoint any Investor Replacement Director to any applicable
committee of the Board of which the Investor Affiliated Director was a member immediately prior to such Investor Affiliated Director’s
resignation or removal; provided that such Investor Replacement Director is qualified to serve on any such committee of
the Board. The terms and conditions applicable to the Investor Affiliated Director under this Agreement shall apply to any such
Investor Replacement Director as if such person were the Investor Affiliated Director. Following the appointment of any Investor
Replacement Director to replace the Investor Affiliated Director in accordance with this Section 1(f)(i), all reference
to the Investor Affiliated Director or the New Directors herein shall be deemed to include any Investor
Replacement Director (it being understood that this sentence shall apply whether or not references to the Investor Affiliated
Director expressly state that they include any Investor Replacement Director). If at any time a Minimum Ownership Event occurs,
the right of Investor pursuant to this Section 1(f)(i) to name an Investor Replacement Director to fill the vacancy caused
by the resignation or removal of the Investor Affiliated Director shall automatically terminate. Prior to the appointment of any
Investor Replacement Director to the Board, the Investor Replacement Director will submit to the Company the information, documentation
and acknowledgements set forth in clause (iv) of Section 1(g) hereof.

 

(ii)                           During the Standstill Period, if a Minimum Ownership Event has not occurred and if either of the New Directors, other than
the Investor Affiliated Director, ceases to serve as a director of the Company for any reason, the Company shall seek to appoint
a replacement director, through the Board’s normal processes (any such replacement nominee shall be referred to as the “New
Director Replacement Director”) and, together with any Investor Replacement Director, a “Replacement Director”)
and the Nominating, Governance and Sustainability Committee will invite Investor to submit names of candidates to be considered
pursuant to such process. Any New Director Replacement Director shall have similar skillsets as the applicable New Director being
replaced.

 

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(iii)                          During the Standstill Period, if a Minimum Ownership Event has not occurred and a director other than the New Directors
ceases to serve as a director of the Company for any reason, the Board, through its normal processes, may, in its sole discretion,
seek to replace such departing director with a new independent director (unless such departing director is the Company’s
Chief Executive Officer, in which case the replacement shall be the incoming Chief Executive Officer, unless determined otherwise
by the Board).

 

(g)           Additional Agreements.

 

(i)                         Investor agrees that it will comply, and cause its respective controlled Affiliates and Associates to comply, with the terms
of this Agreement and shall be responsible for any breach of this Agreement by any such controlled Affiliate or Associate. As used
in this Agreement, the terms “Affiliate” and “Associate” shall have the respective meaning
set forth in Rule 12b-2 promulgated by the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and shall include all persons or entities that at any time during the term of this Agreement become Affiliates or Associates of
any person or entity referred to in this Agreement.

 

(ii)                        Until the Termination Date, Investor agrees that it will (A) be present for quorum purposes at the 2020 Annual General Meeting
and (B) vote or cause to be voted all shares of the Ordinary Shares beneficially owned, or deemed to be beneficially owned (as
determined under Rule 13d-3 promulgated under the Exchange Act), and entitled to vote as of the record date, by Investor:

 

(1) in favor of the slate of directors
recommended by the Board consistent with the terms of this Agreement;

 

(2) against the removal of any
directors at the 2020 Annual General Meeting (such obligations will be made in accordance with the terms hereof), in favor of any
say-on-pay vote (provided, however, that Investor need not vote in favor of
the say-on-pay vote in the event that (x) both Institutional Shareholder Service, Inc. (“ISS”) and Glass Lewis
 & Co. (“Glass Lewis”) recommend against the say-on-pay vote and (y) the “total average direct compensation”
(defined as base salary, plus target annual cash bonus, plus target Long-Term Incentive Plan award, plus any other equity grant)
for the Company’s named executive officers (as such term is used in the Exchange Act) (excluding reasonable and customary
retention bonuses and increases as a result of promotions) for calendar year 2020 has increased by more than twenty percent (20%)
compared to the total average direct compensation for such named executive officers for calendar year 2019; for the avoidance of
doubt, the calculation of total average direct compensation excludes any previously disclosed severance payments);

 

(3)
in favor of any standard resolutions put to a shareholder vote at the 2020 Annual General Meeting (including those related
to the appointment of a UK statutory auditor or US independent registered public accounting firm, UK statutory auditor remuneration,
UK statutory accounts, the directors’ remuneration report and the directors’ remuneration policy (provided, however,
that Investor need not vote in favor of the director’s remuneration report or directors’ remuneration policy (as applicable)
  in the event that (x) both ISS and Glass Lewis recommend against the directors’ remuneration report or directors’
remuneration policy (as applicable) and (y) the “director total average direct compensation” (defined as retainer (including
retainers for Chair positions), plus target Long-Term Incentive Plan award, plus any other equity grant) for the Company’s
non-employee directors for calendar year 2020 has increased by more than five percent (5%) compared to the director total average
direct compensation for such non-employee directors for calendar year 2019), allotment of shares (in accordance with the statutory
requirements and guidelines of the UK proxy advisory services), disapplication of pre-emptive rights (in accordance with the statutory
requirements and guidelines of the UK proxy advisory services) and new equity plans or amendments to existing equity plans); and

 

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(4) in accordance with the Board’s
recommendation with respect to any other matter brought to a vote of the Company’s shareholders during the Standstill Period
(including all shareholder proposals under Rule 14a-8 promulgated under the Exchange Act) unless either ISS or Glass Lewis have
recommended otherwise and Investor has not campaigned any such proxy advisory service to recommend against such matter, in which
case Investor may abstain from voting on such matter (or if an abstention has the same effect as a vote against the matter, Investor
will not vote on such matter);

 

provided, however, that Investor
will vote its Ordinary Shares in accordance with the recommendation of the Board on any matter that the Investor Affiliated Director
has approved, regardless of the recommendation of ISS or Glass Lewis; provided, further, that the obligations contained
in clause (4) above shall not apply to any extraordinary matters voted on at a shareholder meeting involving mergers and acquisitions
or a similar business combination (including any transaction that would result in the acquisition by any third party of 50% or
more of the Ordinary Shares of the Company) as well as any recapitalization, restructuring, liquidation, or dissolution of the
Company (each, an “Extraordinary Transaction”). Notwithstanding anything to the contrary in this Agreement,
(xx) Investor shall have no obligations with respect to clauses (A) and (B) of this Section 1(g)(ii) in the event that the
Board accepts the resignation of the Investor Affiliated Director (or any Investor Replacement Director, as applicable) pursuant
to Section 1(g)(iii)(A) hereof, and (yy) none of the obligations contained in this Section 1(g)(ii) or elsewhere
in this Agreement shall restrict Investor or any of its Affiliates or Associates from tendering shares, receiving payment for shares
or otherwise participating in any Extraordinary Transaction on the same terms as other shareholders of the Company or any of its
subsidiaries that has been approved by the Board.

 

(iii)                       Prior to the date hereof, the Investor Affiliated Director has delivered to the Company an executed irrevocable resignation
letter as a director in the form attached hereto as Exhibit B, pursuant to which the Investor Affiliated Director agrees
to tender his resignation from the Board and all applicable committees thereof (which the Board may or may not accept) if (A) Investor
sells or disposes (excluding involuntarily dispositions caused solely by actions of the Company) of Ordinary Shares, and after
giving effect to such sale or disposition, Investor’s aggregate beneficial ownership (which,
for purposes of this Agreement, shall be determined under Rule 13d-3 promulgated under the Exchange Act)
of the then-outstanding Ordinary Shares of the Company is below either (I) both (1) nine percent (9%) of the Company’s
then-outstanding Ordinary Shares and (2) a value of $140 million (based on the average of the closing price of the stock over the
preceding ten trading days) or (II) 5.25% of the Company’s then-outstanding Ordinary Shares (such sale or disposition event
resulting in either (I) or (II) being referred to as, a “Minimum Ownership Event”) or (B) upon a material breach
of this Agreement by Investor (after a reasonably detailed written notice of such breach by the Company to the Investor and a reasonable
opportunity for Investor to cure such breach). The resignation letter will also provide that the Investor Affiliated Director must
tender his resignation from the Board and all applicable committees thereof (which the Board may or may not accept) if Investor
or any of its Affiliates nominates one or more candidates for election to the Board at the Company’s 2021 annual general
meeting of shareholders (the “2021 Annual General Meeting”). Any Investor Replacement Director shall sign a
substantially similar irrevocable resignation letter prior to his or her appointment to the Board. The Investor Affiliated Director’s
or Investor Replacement Director’s irrevocable resignation made pursuant to this paragraph shall not be effective until the
Board shall have accepted such resignation, which acceptance shall be made within the sole and absolute discretion of the Board,
provided that any such rejection of a resignation by the Board shall not impact the ability of the Investor Affiliated Director
or Investor Replacement Director to resign from the Board if he or she desires to do so. In furtherance of the purposes of this
paragraph, Investor will provide the Company its beneficial ownership and economic exposure of the Company’s securities from
time to time as requested by the Company.

 

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(iv)                       Prior to the date hereof, the Investor Affiliated Director has delivered to the Company (A) a fully completed copy of the
Company’s standard director and officer questionnaire and other reasonable and customary director onboarding documentation
required by the Company’s written policies and procedures of non-management directors in connection with the appointment
or election of new Board members and (B) a written acknowledgment in substantially the form entered into by the other directors
of the Company that the Investor Affiliated Director agrees to be bound by all current policies, codes and guidelines applicable
to Company directors, including the Company’s securities trading policy, share ownership guidelines, code of conduct, and
corporate governance principles (the “Company Policies”). The Company
agrees that the Investor Affiliated Director shall (1) be indemnified by the Company in the same manner as all other non-management
directors of the Company and (2) receive the benefit of customary directors’ and officers’ liability insurance coverage
in accordance with the terms of any such insurance policy.

 

(v)                        If, in the exercise of its fiduciary duties and after consulting with its legal counsel, the Board determines in good faith
that the Investor Affiliated Director has a conflict of interest or an appearance of a conflict of interest (it being understood
that Investor’s ownership of Ordinary Shares will not, in and of itself, be an appearance of or an actual conflict of interest)
with respect to (i) a matter concerning the Investor or this Agreement, (ii) any action taken in response to actions taken or proposed
by Investor or its controlled Affiliates with respect to the Company, (iii) any proposed bilateral transaction between the Company
and Investor or its controlled Affiliates that is not otherwise restricted by this Agreement, or (iv) Investor’s ownership
of securities of the Company other than the Ordinary Shares, then the Board may, by majority vote of the members of the Board (but
excluding the Investor Affiliated Director) recuse the Investor Affiliated Director from any committee meeting (including the Finance
Committee) or the portion of any Board meeting at which any such committee or the Board is discussing such matter that is related
to the conflict of interest, and the Company may withhold from the Investor Affiliated Director any Board or committee material
distributed to the directors in connection with such recusal. It is understood and agreed to that, unless otherwise agreed to by
the Board, no member of the Finance Committee shall participate in any Finance Committee meetings if such member or its Affiliates
or Associates have economic, legal or beneficial interest in any securities of the Company (other than Ordinary Shares) that are
determined by the Board in good faith to present any conflict of interest with respect to the authority or responsibilities of
the Finance Committee.

 

(vi)                       The Company agrees that the Investor Affiliated Director shall receive the same annual compensation as other non-employee
directors of the Company and shall be entitled to reimbursement for the Investor Affiliated Director’s documented and reasonable
out-of-pocket expenses on the same basis as all other directors of the Company in their capacity as such.

 

2.             Standstill Provisions.

 

(a)           The standstill period (the “Standstill Period”) begins on the
date of this Agreement and shall extend until the Termination Date. Investor agrees that during the Standstill Period, neither
Investor nor any of its Affiliates under its control or direction will, and Investor will cause each of its Affiliates under its
control not to, directly or indirectly, in any manner, alone or in concert with others, without prior consent, invitation, approval,
or authorization of the Board or except as otherwise provided for in this Agreement:

 

(i)                            acquire, or offer, seek or agree to acquire, by purchase or otherwise, or direct any third party in the acquisition of,
any securities of the Company or any of its subsidiaries (including, without limitation, Ordinary Shares and debt securities) or
any securities convertible or exchangeable into or exercisable for any such securities (collectively, “securities of the
Company”) or assets of the Company, or rights or options to acquire any securities of the Company or engage in any swap
instrument or derivative hedging transactions or other derivative agreements of any nature with respect to securities of the Company,
provided, Investor and its Affiliates may acquire beneficial ownership or economic exposure in the aggregate not exceeding
twenty percent (20%) of the Company’s outstanding Ordinary Shares, subject to the Company’s securities trading policy
and applicable law; provided further, that Investor and its Affiliates under its control,
in accordance with all applicable insider trading and securities laws, may acquire, or offer, seek or agree to acquire, by purchase
or otherwise, or direct any third party in the acquisition of, any debt securities of the Company in the event that the
Board accepts the resignation of the Investor Affiliated Director (or any Investor Replacement Director, as applicable) pursuant
to Section 1(g)(iii)(A) hereof;

 

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(ii)                           engage in any short sale (i.e., the sale of borrowed securities into the public market) or acquire an instrument
involving a purchase, sale or grant of any option, warrant, convertible security, stock appreciation right or other similar right
(including, without limitation, any put or call option or swap transaction) with respect to any security (other than a broad-based
market basket or index) the purpose of which is for Investor to derive any significant part of its value from a decline in the
market price or value of the securities of the Company;

 

(iii)                          engage in a “solicitation” of “proxies” (as such terms are defined under the Exchange Act), votes
or written consents of shareholders or security holders with respect to, or from the holders of, the securities of the Company
(including a “withhold” or similar campaign), for any purpose, including, without limitation, the election or appointment
of individuals to the Board or to approve or vote in favor or against shareholder proposals, resolutions or motions, or become
a “participant” (as such term is defined in Instruction 3 to Item 4 of Schedule 14A promulgated under the Exchange
Act) in any contested “solicitation” of proxies, votes or written consents for any purpose, including, without limitation,
the election or appointment of directors with respect to the Company (as such terms are defined under the Exchange Act) (other
than a “solicitation” or acting as a “participant” in support of the nominees of the Board at any shareholder
meeting or voting its shares at any such meeting in its sole discretion, or providing such encouragement, advice or influence that
is consistent with either the Board’s or Company management’s recommendation in connection with such director nominees
or other proposals, resolutions or motions, pursuant to this Agreement or otherwise);

 

(iv)                          except as specifically contemplated in this Agreement, present at any annual general meeting or any general meeting of the
Company’s shareholders or through action by written consent any proposal, resolution or motion for consideration for action
by shareholders, requisition any general meeting of the Company, require the Company to circulate to shareholders of the Company
any statement, require the Company to give notice of any proposal, resolution or motion at any annual general meeting of the Company

 

(v)                           except as specifically contemplated by this Agreement, publicly seek any additional representation on the Board, seek the
removal of any member of the Board or encourage any person to submit nominees in furtherance of a contested election;

 

(vi)                          grant any proxy, consent or other authority to vote with respect to any matters (other than to the named proxies included
in the Company’s proxy card for any annual general meeting or general meeting of shareholders or to Investor’s Affiliates,
who are subject to the restrictions set forth in this Section 2) inconsistent with the terms of this Agreement or deposit
any securities of the Company in a voting trust or subject them to a voting agreement or other arrangement of similar effect with
respect to any annual or general meeting or action by written consent (excluding customary brokerage accounts, margin accounts,
prime brokerage accounts, swap agreements and the like, and any arrangements solely among members of the Investor);

 

(vii)                         make any public disclosure, announcement, statement, proposal, plan or request with respect to: (A) the Company or controlling,
changing or influencing the Board or management of the Company, (B) the capitalization, stock repurchase programs and practices,
capital allocation or liability management programs and practices or dividend policy of the Company, (C) the Company’s management,
business, corporate or governance structure or securities, assets, businesses or strategy, (D) any waiver, amendment or modification
to the Company’s Memorandum of Association or Articles of Association, (E) causing a class of securities of the Company to
be delisted from or cease to be authorized to be quoted on, any securities exchange, or (F) causing a class of equity securities
of the Company to become eligible for termination of registration pursuant to Section 12(g)(4) of the Exchange Act;

 

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(viii)                        make any public disclosure, announcement, plan or request inconsistent with this Agreement;

 

(ix)                           exercise any right conferred by English law or any federal or state law of the United States (“US law”)
to: inspect or request a copy of the Company’s register of shareholders; inspect or request a copy of the Company’s
register of interests disclosed; propose an amendment to any ordinary resolution of the Company; bring or continue any derivative
claim (either as defined in section 260 of the UK Companies Act 2006 or otherwise under US law) concerning any director or former
director of the Company or petition any UK court pursuant to Part 30 of the UK Companies Act 2006 or any US court pursuant to US
law in respect of the Company; require the Company to publish on a website any statement relating to audit concerns; require independent
scrutiny of any vote conducted by way of a poll at any general meeting of the Company; apply for the appointment of an inspector
to investigate the affairs or membership of the Company; or require the Company to exercise its powers under section 793 of the
UK Companies Act 2006;

 

(x)                            form, join or act in concert with any partnership, limited partnership, syndicate or other person or group, including a
 “group” as defined pursuant to Section 13(d) of the Exchange Act with respect to any securities of the Company, other
than solely with Affiliates (that are not portfolio companies) of Investor with respect to the securities of the Company now or
hereafter owned by them;

 

(xi)                           make any public request or submit any proposal to amend or waive the terms of this Agreement, or take any action which would
reasonably be expected to require a public announcement of such request or proposal;

 

(xii)                          be a lender under, or holder of a participation interest in, or otherwise provide financing under any credit, term loan
or debt facility or agreement of the Company or any of its subsidiaries; or

 

(xiii)                         enter into any agreements or understandings (whether written or oral) with any third party to take any action with respect
to any of the foregoing, or advise, facilitate, knowingly assist, finance, knowingly encourage or seek to persuade any third party
to take any action Investor is prohibited from taking pursuant to this Section 2.

 

(b)           The restrictions in this Section 2 shall not prevent Investor or any of its Affiliates from making any factual statement
as required by, in response to, or compliance with a subpoena, legal requirement, or applicable legal process or a request by a
governmental or regulatory authority with competent jurisdiction over the party from whom information is sought (so long as such
process or request did not arise as a result of discretionary acts by Investor). In addition, this Section 2 will not limit
Investor’s private communications or discussions with the Investor’s advisors that would not reasonably be expected
to require the Company or Investor to make public disclosure (of any kind) with respect thereto.

 

(c)           Subject to complying with its obligations under Sections 2(a), 11 and 12 hereof, Investor may engage
in any private discussions with the Company’s senior management or any member of the Board so long as such private communications
would not be reasonably determined to trigger public disclosure obligations for any such party.

 

(d)           Nothing in this Section 2 shall be deemed to limit the exercise in good faith by a New Director of his or her fiduciary
duties solely in his or her capacity as a director of the Company.

 

		3.	Representations and Warranties of the Company.

 

The Company represents
and warrants to Investor that (a) the Company has the corporate power and authority to execute this Agreement and to bind the Company
thereto, (b) this Agreement has been duly and validly authorized, executed and delivered by the Company, constitutes a valid and
binding obligation and agreement of the Company, and is enforceable against the Company in accordance with its terms, except as
enforcement thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar
laws generally affecting the rights of creditors and subject to general equity principles and (c) the execution, delivery and performance
of this Agreement by the Company does not and will not (i) violate or conflict with any law, rule, regulation, order, judgment
or decree applicable to the Company, or (ii) result in any breach or violation of or constitute a default (or an event which with
notice or lapse of time or both could constitute such a breach, violation or default) under or pursuant to, or result in the loss
of a material benefit under, or give any right of termination, amendment, acceleration or cancellation of, any organizational document,
agreement, contract, commitment, understanding or arrangement to which the Company is a party or by which it is bound.

 

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		4.	Representations and Warranties of Investor.

 

Investor represents
and warrants to the Company that (a) the authorized signatory of Investor set forth on the signature page hereto has the power
and authority to execute this Agreement and any other documents or agreements to be entered into in connection with this Agreement
and to bind Investor thereto; (b) this Agreement has been duly authorized, executed and delivered by Investor, and is a valid and
binding obligation of Investor, enforceable against Investor in accordance with its terms, except as enforcement thereof may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or similar laws generally affecting
the rights of creditors and subject to general equity principles; (c) the execution of this Agreement, the consummation of any
of the transactions contemplated hereby, and the fulfillment of the terms hereof, in each case in accordance with the terms hereof,
will not conflict with, or result in a breach or violation of the organizational documents of Investor as currently in effect;
(d) the execution, delivery and performance of this Agreement by Investor does not and will not (i) violate or conflict with any
law, rule, regulation, order, judgment or decree applicable to Investor, or (ii) result in any breach or violation of or constitute
a default (or an event which with notice or lapse of time or both could constitute such a breach, violation or default) under or
pursuant to, or result in the loss of a material benefit under, or give any right of termination, amendment, acceleration or cancellation
of, any organizational document, agreement, contract, commitment, understanding or arrangement to which Investor is a party or
by which it is bound; (e) as of the date hereof, Investor is deemed to beneficially own (as determined under Rule 13d-3 promulgated
under the Exchange Act), in the aggregate, 36,982,076 Ordinary Shares; (f) other than the debt securities set forth on Schedule
1 to this Agreement, as of the date hereof, Investor does not currently have, and does not currently have any right to acquire
or any interest in, any other securities of the Company (or any rights, options or other securities convertible into or exercisable
or exchangeable (whether or not convertible, exercisable or exchangeable immediately or only after the passage of time or the occurrence
of a specified event) for such securities of the Company or any obligations measured by the price or value of any securities of
the Company or any of its Affiliates, including any swaps or hedging transactions or other derivative arrangements designed to
produce economic benefits and risks that correspond to the ownership of securities of the Company, whether or not any of the foregoing
would give rise to beneficial ownership, and whether or not to be settled by delivery of securities of the Company, payment of
cash or by other consideration, and without regard to any short position under any such contract or arrangement); and (g) Investor
will not compensate or agree to compensate (including with cash, securities or any rights or options convertible into or exercisable
for or exchangeable into securities or any profit sharing agreement or arrangement) the Investor Affiliated Director solely for
his service as a director of the Company to the extent such compensation paid to the Investor Affiliated Director is directly related
to (i) the financial performance of the Company or securities of the Company or (ii) the Company or its Affiliates entering into
any transaction.

 

		5.	Termination.

 

This Agreement shall
remain in full force and effect and shall terminate (the “Termination Date”) upon the earliest of:

 

(a)           the date that is thirty (30) business days prior to the advance notice deadline for shareholder nominations of directors
to be proposed for appointment at the 2021 Annual General Meeting;

 

(b)           the date on which any breach by the Company in any material respect of its obligations under this Agreement occurs (subject
to the Company receiving written notice of such breach and a reasonable opportunity for the Company to cure such breach); or

 

(c)           such other date established by mutual written agreement of the Parties;

 

    9

     

    

 

provided that
such termination shall not relieve any Party or the Investor Affiliated Director from their respective obligations under each of
Section 12 hereof and the NDA (as hereinafter defined), which obligations shall survive in accordance with their terms.
For the avoidance of doubt, nothing in this Agreement shall restrict or prohibit any New Director from resigning at any time for
any reason or no reason.

 

		6.	Specific Performance.

 

Each of Investor, on
the one hand, and the Company, on the other hand, acknowledges and agrees that irreparable injury to the other Party would occur
in the event any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise
breached and that such injury would not be adequately compensable by the remedies available at law (including the payment of money
damages). It is accordingly agreed that Investor, on the one hand, and the Company, on the other hand (the “Moving
Party”), shall each be entitled to specific enforcement of, and injunctive relief to prevent any violation of,
the terms hereof (without the requirement of posting a bond) at the discretion of a court of competent jurisdiction, and the other
Party will not take action, directly or indirectly, in opposition to the Moving Party seeking such relief on the grounds that any
other remedy or relief is available at law or in equity. This Section 6 is not the exclusive remedy for any violation of
this Agreement.

 

		7.	Severability.

 

If any term, provision,
covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall
in no way be affected, impaired or invalidated. The Parties agree to use their commercially reasonable best efforts to agree upon
and substitute a valid and enforceable term, provision, covenant or restriction for any of such that is held invalid, void or enforceable
by a court of competent jurisdiction.

 

		8.	Notices.

 

Any notices, consents,
determinations, waivers or other communications required or permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by
facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
Party); (iii) upon confirmation of receipt, when sent by email (provided such confirmation is not automatically generated);
or (iv) one (1) business day after deposit with a nationally recognized overnight delivery service, in each case properly addressed
to the Party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

	If to the Company:	 Valaris plc 
	 	110 Cannon Street
	 	London, EC4N 6EU, United Kingdom
	 	Attention:	Michael T. McGuinty
	 	Email:	michael.mcguinty@valaris.com

 

	With a copy (which shall not constitute notice) to:	 Skadden, Arps, Slate, Meagher & Flom LLP
	 	4 Times Square
	 	New York, NY 10036
	 	Attention:	Richard J. Grossman
	 	Email:	Richard.Grossman@skadden.com

 

	 	and

 

	 	Slaughter and May
	 	One Bunhill Row
	 	London, EC1Y 8YY
	 	United Kingdom
	 	Attention: 	Hywel Davies and Christian Boney
	 	Email: 	hywel.davies@slaughterandmay.com
	 	 	christian.boney@slaughterandmay.com

 

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	If to Investor:	 Luminus Management, LLC
	 	1700 Broadway, 26th Floor
	 	New York, NY 10019
	 	Attention:	Shawn Singh
	 	Email:	ssingh@luminusmgmt.com

 

	With a copy (which shall not constitute notice) to:	 Schulte Roth & Zabel LLP
	 	919 Third Avenue
	 	New York, NY 10022
	 	Attention:	Eleazer Klein and Marc Weingarten
	 	Email:	eleazer.klein@srz.com and marc.weingarten@srz.com

 

		9.	Governing Law; Jurisdiction.

 

This Agreement is to
be governed by the laws of England and Wales. Any matter, claim or dispute arising out of or in connection with this Agreement,
whether contractual or non-contractual, is to be governed by and determined in accordance with such law. The courts of England
and Wales are to have exclusive jurisdiction to settle any dispute, whether contractual or non-contractual, arising out of or in
connection with this Agreement. Any proceeding, suit or action arising out of or associated with this Agreement or the negotiation,
existence, validity or enforceability of this Agreement, whether contractual or non-contractual (“Proceedings”)
shall be brought only in the courts of England and Wales. Each Party waives (and agrees not to raise) any objection, on the ground
of forum non conveniens or on any other ground, to the taking of Proceedings in the courts of England and Wales. Each Party
also agrees that a judgment against it in Proceedings brought in England and Wales shall be conclusive and binding upon it and
may be enforced in any other jurisdiction. Each Party irrevocably submits and agrees to submit to the exclusive jurisdiction of
the courts of England and Wales.

 

		10.	Counterparts.

 

This Agreement may
be executed in two or more counterparts, each of which shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each of the Parties and delivered to the other Party (including by means of electronic delivery
or facsimile). For the avoidance of doubt, neither Party shall be bound by any contractual obligation to the other Party (including
by means of any oral agreement) until all counterparts to this Agreement have been duly executed by each of the Parties and delivered
to the other Party (including by means of electronic delivery).

 

		11.	Mutual Non-Disparagement.

 

Subject to any applicable
legal obligation to do so in response to or compliance with a subpoena, validly issued legal process or a request by a governmental
or regulatory authority, each of the Parties covenants and agrees that, during the Standstill Period, neither Party nor any of
its respective agents, subsidiaries, affiliates, successors, assigns, principals, partners, members, general partners, limited
partners, officers, key employees or directors (collectively, “Representatives”), shall publicly make ad
hominem attacks or otherwise disparage, defame, slander, or impugn the other Party or any of its Affiliates, subsidiaries or
advisors, or any of its or their current, former or future officers, directors or employees or Representatives. In addition to
other remedies available in connection with any breach of this Agreement, nothing shall prevent either Party or its Representatives
from responding without restriction to the other Party’s breach of this Section 11.

 

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		12.	Confidentiality.

 

(a)           The Company hereby agrees that, for as long as the Investor Affiliated Director (or any Investor Replacement Director) is
a member of the Board, such Investor Affiliated Director may share non-public information entrusted to or obtained by such Investor
Affiliated Director, as applicable, by reason of his or her position as a director of the Company (collectively and individually,
the “Confidential Information”) with Investor; provided any
such disclosure of the Confidential Information is in accordance with all terms and obligations of a customary non-disclosure agreement,
in substantially the form attached hereto as Exhibit C (the “NDA”),
to be entered into by and between Investor and the Company, which NDA shall be executed concurrently with this Agreement. Except
as otherwise provided herein, at all times while serving as a director, the Investor Affiliated Director shall (A) comply with
all policies, codes and guidelines applicable to the Company’s directors, including, without limitation, the Company Policies
and (B) keep confidential and not disclose Confidential Information. Investor will only be permitted to trade in the securities
of the Company (subject to applicable law, including federal securities laws, and the terms hereof) (A) during any open window
periods when members of the Board are permitted to do so, provided that Investor is not in possession of material non-public
information during such open window period, and (B) from and any time after the opening of the first open window period following
the date on which the Investor Affiliated Director (or any Investor Replacement Director) ceases to serve on the Board. The Company
will notify the Investor in advance of any such open window trading periods.

 

(b)           Investor agrees that the Investor Affiliated Director (or any Investor Replacement Director) shall not participate in any
meeting or portion of a meeting at which the Board or any committee thereof is discussing any matter related to this Agreement,
the NDA, Investor or its Affiliates. For the avoidance of doubt, except as otherwise provided in this Section 12 and subject
to the prohibitions set forth in Section 2 hereof, Investor shall not be subject to any formal or informal policy of the
Company relating to the ability of Investor to own or transact in any securities of the Company, including, without limitation,
the Company’s securities policy or anti-pledging policy.

 

(c)           The NDA shall further provide that any confidentiality obligations pursuant to the NDA shall expire twelve (12) months after
the date on which the Investor Affiliated Director (or any Investor Replacement Director) ceases to serve as a director of the
Company; provided that Investor shall maintain in accordance with the confidentiality obligations set forth therein any
Confidential Information constituting trade secrets for such longer time as such information constitutes a trade secret of the
Company as defined under 18 U.S.C. § 1839(3).

 

		13.	Public Announcements.

 

Promptly following
the execution of this Agreement, the Company and Investor shall announce this Agreement by means of a joint press release in substantially
the form attached hereto as Exhibit D (the “Press Release”).
During the Standstill Period, neither the Company nor Investor shall make or cause to be made any public announcement or statement
with respect to the subject of this Agreement that is inconsistent with or contrary to the statements made in the Press Release,
except as required by law or the rules of any stock exchange or with the prior written consent of the other Party. The Company
acknowledges that Investor may file this Agreement (a) as an exhibit to a Schedule 13D or Schedule 13D/A and (b) pursuant to any
securities and/or exchange rules and regulations that are applicable to Investor. The Company shall be given a reasonable opportunity
to review and comment on any Schedule 13D or Schedule 13D/A filing made by Investor with respect to this Agreement prior to the
filing with the SEC, and Investor shall give reasonable consideration in good faith to any reasonable comments of the Company.
Investor acknowledges and agrees that the Company will file this Agreement and file or furnish the Press Release with the SEC as
exhibits to a Current Report on Form 8-K (the “Company 8-K”) within two (2) business days of the execution of
this Agreement. Investor shall be given a reasonable opportunity to review and comment on the Form 8-K made by the Company with
respect to this Agreement prior to the filing with the SEC, and the Company shall give reasonable consideration in good faith to
any reasonable comments of Investor.

 

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		14.	Expense Reimbursement.

 

Promptly following
the execution and delivery of this Agreement and receipt of documentation, the Company shall reimburse Investor for all reasonable
documented out-of-pocket fees and expenses incurred in connection with Investor’s engagement with the Company, including
the fees of its legal counsel, financial advisor, public relations firm and proxy solicitor, in an amount not to exceed $3,000,000
in the aggregate.

 

		15.	Entire Agreement; Amendment and Waiver; Successors and Assigns.

 

This Agreement (including
its exhibits) and the NDA as executed contain the entire understanding of the Parties with respect to subject matter thereof. There
are no restrictions, agreements, promises, representations, warranties, covenants or undertakings between the Parties other than
those expressly set forth herein and therein. No modifications of this Agreement can be made except in writing signed by an authorized
representative of each of the Parties. No failure on the part of any Party to exercise, and no delay in exercising, any right,
power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy
by such Party preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies
hereunder are cumulative and are not exclusive of any other remedies provided by law. The terms and conditions of this Agreement
shall be binding upon, inure to the benefit of, and be enforceable by the Parties and their respective successors, heirs, executors,
legal representatives, and permitted assigns. No Party shall assign this Agreement or any rights or obligations hereunder without,
with respect to Investor, the prior written consent of the Company, and with respect to the Company, the prior written consent
of Investor. This Agreement is solely for the benefit of the Parties and is not enforceable by any other persons or entities.

 

[The remainder of this page intentionally
left blank]

 

    13

     

    

 

IN WITNESS WHEREOF,
this Agreement has been duly executed and delivered by the duly authorized signatories of the Parties as of the date hereof.

 

 

	VALARIS PLC	 
	 	 
	By:	/s/ Michael T. McGuinty	 
	Name:	 Michael T. McGuinty	 
	Title:	Senior Vice President – General Counsel & Secretary	 

 

	LUMINUS MANAGEMENT, LLC
	 
	By:	/s/ Shawn R. Singh	 
	Name:	Shawn R. Singh	 
	Title:	General Counsel/CCO	 

 

[Signature Page to Cooperation Agreement]

 

    

     

    

 

EXHIBIT A

 

CHARTER OF THE FINANCE COMMITTEE

 

    

     

    

 

CHARTER

FINANCE COMMITTEE

of

THE BOARD OF DIRECTORS

of

VALARIS PLC

 

(Adopted 18 October 2019)

Composition

 

The Finance Committee (the “Committee”)
shall be composed of three or more directors of Valaris plc (the “Company”). The Board of Directors (the “Board”)
may appoint and remove Committee members, including the Committee chair, in accordance with the Company’s Articles of Association
(“Articles”).

 

Authority

 

The Committee shall have the
authority and be empowered, in accordance with its judgment and subject to the requirements of applicable laws, rules or regulations,
to carry out those matters for which it is assigned responsibility in this Charter or by resolution of the Board.

 

The Committee is empowered to
retain persons having special competence as necessary to assist the Committee in fulfilling its responsibilities.

 

Except as may be set forth in
a resolution of the Board, the Committee will not have authority to bind the Board to a decision and the existence of the Committee
does not preclude the Board from taking any actions with respect to Capital Structure Activities (as defined in the “Responsibilities”
section below) or any of the other responsibilities of the Committee.

 

Nothing in this charter is intended
to preclude or impair the protection provided under English law for reliance by members of the Committee in their independent judgment
and to a reasonable degree on the competence and integrity of reports and other information provided by others. While the Committee
members have the duties and responsibilities set forth in the Committee charter, nothing contained in the Committee charter is
intended to create, or should be construed as creating, any responsibility or liability of the Committee members, except to the
extent otherwise provided under applicable laws, rules or regulations.

 

Meetings

 

The Committee is to meet as many
times as the Committee deems necessary. Meetings for the consideration of pertinent matters may be requested by (i) the Committee
chair, (ii) the CEO or (iii) the secretary on request of any two members of the Committee. A majority of the members of the Committee
shall constitute a quorum at any meeting. The Committee shall report regularly to the full Board with respect to its activities.

 

    1

     

    

 

Procedures

 

The procedures governing operation
of the Committee will be as set forth in the Company’s Articles and Corporate Governance Policy as applicable to a special
committee of the Board of Directors, as such may be amended from time to time. The Committee may establish additional procedures
applicable to the Committee, including with respect to the formation and delegation of authority to sub-committees, in a manner
not inconsistent with this Charter, the Company’s Articles, the Company’s Corporate Governance Policy or applicable
law or the NYSE listing standards.

 

Attendance

 

All of the Company’s other
directors shall be invited to attend Committee meetings in a non-voting capacity, except where the Committee chair determines that
there is a specific reason to limit attendance at the meeting. As necessary or desirable, the Committee chair may request that
members of the management or independent consultants be present at meetings of the Committee.

 

Minutes

 

The Secretary, Assistant Secretary
of the Company or such person as shall be designated by the Committee chair to act as Secretary will prepare the minutes of each
meeting and send a copy of the minutes to the Committee members and to the directors who are not members of the Committee.

 

Responsibilities

 

The Committee shall be empowered
in accordance with its judgment and subject to the requirements of applicable laws, rules or regulations, to act in respect of
the following:

 

		1.	Review and evaluate, in conjunction with Executive Management, the Company’s liquidity, balance
sheet, capital allocation, asset portfolio management and capital structure.

 

		2.	Make recommendations to the Board regarding actions to be considered in furtherance of optimizing
the Company’s use of capital and its capital structure, which may include, among other things, capital structure changes;
the issuance of new equity, bonds or other securities; entry into new (or modifications of existing) credit agreements; dividends;
repurchases or tenders for equity, bonds or other securities; or asset sales (together with other similar transactions that may
be considered by the Committee, the “Capital Structure Activities”).

 

		3.	Oversee the execution strategy and the execution of Capital Structure Activities approved by the
Board.

 

		4.	Provide the Board with periodic updates on the Committee’s activities.

 

    2

     

    

 

		5.	Conduct an annual evaluation of the performance of the Committee and implement such measures as
may be deemed appropriate to improve the performance and administration of the Committee.

 

		6.	Review on an annual basis the Committee Charter and recommend to the Board any appropriate changes
in the duties of the Committee or revisions to the Committee Charter.

 

    3

     

    

 

EXHIBIT B

 

FORM OF RESIGNATION LETTER

 

    

     

    

 

VALARIS PLC

ADVANCE RESIGNATION LETTER

 

January 24, 2020

 

Board of Directors

Valaris plc

110 Cannon Street

London, EC4N 6EU, United Kingdom

Attention: The Board of Directors of Valaris plc

 

Dear Ladies and Gentlemen:

 

In accordance with Section 1(g)(iii) of
that certain cooperation and support agreement, dated as of January 24, 2020, by and among Valaris plc (the “Company”)
and Luminus Management, LLC (“Luminus”) (the “Cooperation and Support Agreement”), I hereby
irrevocably tender my resignation as a director of the board of directors of the Company (the “Board”) and a
member of all applicable committees of the Board; provided that this resignation shall be effective upon and only in the
event that: (i)(A) a Minimum Ownership Event (as defined in the Cooperation and Support Agreement) has occurred, (B) Luminus materially
breaches the Cooperation and Support Agreement (after the Company provides a reasonably detailed written notice of such breach
to Luminus and a reasonable opportunity for Luminus to cure such breach) or (C) Luminus or any of its affiliates nominates one
(1) or more candidates for election to the Board at the Company’s 2021 annual general meeting of shareholders and (ii) the
Board shall have accepted such resignation, which acceptance shall be made within the sole and absolute discretion of the Board.

 

This resignation may not be withdrawn by
me at any time.

 

Also in accordance
with the Cooperation and Support Agreement:

 

(i)        I
hereby agree to be bound by, and will comply with, all current policies, codes and guidelines applicable to Company directors,
including the Company’s securities trading policy, share ownership guidelines, code of conduct and corporate governance principles.

 

(ii)
       I hereby agree that if, in the exercise of its fiduciary duties and after
consulting with its legal counsel, the Board determines in good faith that I have a conflict of interest or an appearance of
a conflict of interest (it being understood that Luminus’ ownership of the Company’s Class A ordinary shares, par
value $0.40 per share (the “Ordinary Shares”) will not, in and of itself, be an appearance of or an actual
conflict of interest) with respect to (i) a matter concerning Luminus or the Cooperation and Support Agreement, (ii) any
action taken in response to actions taken or proposed by Luminus or its controlled Affiliates (as defined in the Cooperation
and Support Agreement), (iii) any proposed bilateral transaction between the Company and Luminus or its controlled Affiliates
that is not otherwise restricted by the Cooperation and Support Agreement and (iv) Luminus’ ownership of securities of
the Company other than the Ordinary Shares, then the Board may, by majority vote of the members of the Board (but excluding
me) recuse me from any committee meeting (including the Finance Committee) or the portion of any Board meeting at which any
such committee or the Board is discussing such matter that is related to the conflict of interest, and the Company may
withhold from me any Board or committee material distributed to the directors in connection with such recusal.

 

    

     

    

 

I confirm that I have
no claims against the Company for breach of contract, compensation for loss of office or on any other account whatsoever. I confirm
that there is no agreement or arrangement pursuant to which the Company has or could have any obligation to me including any claim
for remuneration or expenses, except (i) as set forth in the Cooperation and Support Agreement; (ii) in relation to any remuneration
(of any kind, including, without limitation, any salary, awards benefits, or indemnities) for my service as a director of the Company
that was accrued, earned, vested or deferred before the date hereof and remains unpaid and due to me as of the date hereof; and
(iii) in accordance with the Company’s reimbursement of my out-of-pocket expenses, incurred prior to the date hereof, on
the same basis as all other directors of the Company. To the extent that any such claim exists or may exist (except for any claim
excepted in the preceding sentence), I hereby irrevocably waive such claim and release the Company from any liability it has or
may have in respect thereof.

 

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blank.]

 

    

     

    

 

	 	Sincerely,
	 	 
	 	 
	 	Adam Weitzman

 

    

     

    

 

EXHIBIT C

 

NON-DISCLOSURE AGREEMENT

 

    

     

    

 

 

CONFIDENTIAL

 

January 24, 2020

 

Luminus Management, LLC

1700 Broadway, 26th Floor

New York, NY 10019

Attention: Shawn Singh

 

	Re:	Non-Disclosure Agreement

Ladies and Gentlemen:

 

		1.	Valaris plc, a public limited
                                         company incorporated under the laws of England and Wales (the “Company”),
                                         understands and agrees that, subject to the terms of, and in accordance with, this letter
                                         agreement (this “Agreement”), Adam Weitzman (the “Investor
                                         Affiliated Director”) may, if and to the extent the Investor Affiliated Director
                                         desires to do so, disclose information that the Investor Affiliated Director obtains
                                         while serving as a director on the board of directors of the Company (the “Board”)
                                         to Luminus Management, LLC, a limited liability company organized under the laws of Delaware
                                         (together with its affiliates (which for purposes of this Agreement shall have the meaning
                                         set forth in Rule 12b-2 promulgated by the SEC under the Securities Exchange Act of 1934,
                                         as amended), “you” or the “Investor,”
                                         and together with the Investor Affiliated Director,
                                         the “Investor Parties”),
                                         and any of your Investor Representatives (as hereinafter defined), and may discuss
                                         such information with you and your Investor Representatives, subject to the terms and
                                         conditions of this Agreement. As a result, you may receive certain non-public information
                                         regarding the Company that constitutes Confidential Material (as hereinafter defined).
                                         You acknowledge that the Confidential Material is proprietary to the Company and may
                                         include price-sensitive information, trade secrets, proprietary information or other
                                         business information the disclosure of which would reasonably be expected to harm the
                                         Company. In consideration for, and as a condition of, the Confidential Material being
                                         furnished to you and any Investor Representative, you agree to treat confidentially any
                                         and all non-public or proprietary information concerning or relating to the Company or
                                         any of its affiliates that is furnished by the Investor Affiliated Director, or by or
                                         on behalf of the Company, to the Investor, any affiliate of the Investor or any employees,
                                         partners, managing directors, managers, officers, directors, agents, consultants, accountants
                                         or financial or legal or other advisors of the Investor or any of its affiliates (each
                                         of the foregoing that receives Confidential Material from the Company, the Investor,
                                         the Investor Affiliated Director, other than the Investor, an “Investor Representative”),
                                         regardless of the form in which such information is communicated or maintained (including,
                                         without limitation, in written or electronic format or orally, gathered by visual inspection
                                         or otherwise), together with any notes, reports, analyses, models, forecasts, compilations,
                                         studies, interpretations, files, records or other documents or material, or extracts
                                         thereof containing, referring or relating to, based upon or derived from, such information,
                                         in whole or in part (all of the foregoing, collectively, the “Confidential Material”).
                                         This letter agreement shall become effective upon the execution and delivery of the parties
                                         of that certain settlement agreement (the “Settlement Agreement”),
                                         dated as of January 24, 2020, among the Company and Investor.

 

    

     

    

 

		2.	The term “Confidential Material” does not include information that (i) was already
in the possession of the Investor Affiliated Director, the Investor or any Investor Representative prior to the date hereof; (ii)
is received on a non-confidential basis from a source other than the Investor Affiliated Director, the Company, any affiliates
of the Company, employees, directors, agents, financial or other advisors or representatives of the Company or such affiliates,
or representatives of the Company’s and such affiliates’ agents or advisors (each of the foregoing, other than the
Company and the Investor Affiliated Director, a “Company Representative”); provided that the source of
such information was not known by the Investor Party recipient to be bound by a confidentiality agreement with or other contractual,
legal, statutory, regulatory (including by virtue of stock exchange rules), fiduciary or other obligation of confidentiality to
the Company or any other person with respect to such information at the time the same was disclosed; (iii) is or becomes generally
available to the public other than as a result of a disclosure by you, the Investor Affiliated Director or any Investor Representative
in violation of this Agreement or any other obligation of confidentiality to the Company or any of its affiliates; or (iv) is independently
developed by you, the Investor Affiliated Director or any Investor Representative without use of or reference to any Confidential
Material.

 

		3.	It is understood that the Investor may disclose Confidential Material only to those Investor Representatives
that require such material for the purpose of facilitating confidential communications between the Investor and the Authorized
Representatives (as hereinafter defined), evaluating the Confidential Material to advise the Investor, or evaluating investments
in the Company’s Class A ordinary shares, par value $0.40 per share (the “Ordinary
Shares”), owned by the Investor. You agree that the Confidential Material will be kept strictly confidential by
the Investor Representatives in accordance with the terms of this Agreement and, except with the specific prior written consent
of the Company or as expressly otherwise permitted by the terms hereof, will not be disclosed by any Investor Representative to
any person, unless such other person is any of the Investor Parties or an Investor Representative who is permitted to receive Confidential
Material under the terms of this Agreement. The Investor further agrees that (i) prior to furnishing Confidential Material to any
Investor Representative, Investor shall advise any Investor Representative receiving Confidential Material of such Investor Representative’s
obligations to keep such information confidential under the terms of this Agreement and (ii) the Investor shall be responsible
to the Company for any breach or violation by any Investor Representative of the terms of this Agreement as if such Investor Representative
was a party hereto.

 

		4.	Notwithstanding anything in this
                                         Agreement to the contrary (but subject to the succeeding paragraph), in the event that
                                         the Investor or any Investor Representative is requested or required by applicable law
                                         (including the rules and regulations of any securities exchange) in connection with a
                                         legal, judicial, regulatory or administrative investigation or proceeding, by oral questions,
                                         interrogatories, requests for information or documents, subpoena, civil investigative
                                         demand or similar process, to disclose the Confidential Material, it is agreed that the
                                         Investor may, without liability
                                         hereunder, furnish that portion (and only that portion) of the Confidential Material
                                         that the Investor or such Investor
                                         Representative, as applicable, is advised by reputable outside legal counsel
                                         that it is legally required to disclose; provided that the Investor will, to the
                                         extent permitted by applicable law, (i) provide the Company with prompt (and, in any
                                         event, prior to any disclosure) written notice of such event and the terms and circumstances
                                         surrounding such event so that the Company may seek a protective order or other appropriate
                                         remedy or waive compliance with the applicable provisions of this Agreement by the Investor
                                         or Investor Representative, (ii) in the event the Company determines to seek such protective
                                         order or other remedy, reasonably cooperate with the Company (at the Company’s
                                         request and sole cost and expense) in seeking such protective order or other remedy and
                                         (iii) use reasonable efforts, at the Company’s sole cost and expense, to assist
                                         the Company in obtaining reasonable assurance that confidential treatment is accorded
                                         to any Confidential Material so furnished; provided, further, that nothing
                                         in this Section 4 shall be construed to require you or the Investor
                                         Representatives to undertake litigation or other legal proceedings or to incur
                                         any out-of-pocket expenses. In no event will the Investor or any Investor Representative,
                                         as applicable, oppose any action by the Company to obtain a protective order or other
                                         relief to prevent the disclosure of the Confidential Material or to obtain reliable assurance
                                         that confidential treatment will be afforded to the Confidential Material.

 

    2

     

    

 

		5.	It is understood that there shall be no “requirement of applicable law or regulation”
and no “request or requirement in connection with a legal, judiciary or administrative investigation or proceeding”
that would permit the Investor or any Investor Representative to disclose any Confidential Material if such requirement arises
solely from the fact that, absent such disclosure, the Investor or such Investor Representative, as applicable, would be prohibited
from purchasing, selling, or engaging in derivative or other transactions with respect to, equity or debt securities of the Company
or otherwise proposing or making an offer to do any of the foregoing or making any offer, including any tender offer, or the Investor
would be unable to file any proxy materials in compliance with Section 14(a) of the Securities Exchange Act of 1934, as amended,
or the rules promulgated thereunder.

 

		6.	The Investor is aware, and will advise its Investor Representatives, that applicable securities
laws restrict persons with material, non-public information concerning the Company or any of its affiliates (including matters
that may be the subject of this Agreement) from purchasing or selling equity or debt securities of the Company or any of its subsidiaries
(including any derivative transactions with respect to equity or debt securities of the Company), or from communicating such information
to any other person under circumstances in which it is reasonably foreseeable that such other person is likely to purchase or sell
such securities. The Investor further agrees to instruct the Investor Representatives not to trade in equity or debt securities
of the Company or any of its subsidiaries in violation of applicable law while in possession of any Confidential Material. The
Company and the Investor each acknowledge and agree that the Investor Parties will only be permitted to trade in the equity or
debt securities of the Company or any of its subsidiaries, subject to applicable law and the terms of the Settlement Agreement,
(1) during any open window periods when members of the Board are permitted to do so (provided that Investor is not in possession
of any Confidential Material that constitutes material, non-public information) and (2) from and any time after the opening of
the first open window period following the date on which the Investor Affiliated Director ceases to serve on the Board; provided
that the Company agrees to notify the Investor in advance of any such open window trading periods. The Company shall not be responsible
for compliance with applicable laws by the Investor or any Investor Representative.

 

    3

     

    

 

		7.	The Investor understands and acknowledges
                                         that (x) neither the Company nor any Company Representative makes any representation
                                         or warranty, express or implied, as to the accuracy or completeness of the Confidential
                                         Material or any other information provided or made available to the Investor, the Investor
                                         Affiliated Director or any Investor Representative by or on behalf of the Company, and
                                         (y) neither the Company nor any of the Company Representatives shall have any liability
                                         to the Investor, the Investor Affiliated Director or any other person, including the
                                         Investor Representatives, resulting from, the review or use of, or reliance on, Confidential
                                         Material or such other information by the Investor, the Investor Affiliated Director,
                                         any Investor Representative or other person. This Agreement does not create any obligation
                                         of the Company to provide any Confidential Material or other information to any of the
                                         Investor Parties.

 

		8.	At any time after the date on which the Investor Affiliated Director ceases to serve as a director
of the Company, upon the request of the Company for any reason, the Investor shall promptly, and in no event later than seven (7)
business days after such request, deliver or cause to be delivered to the Company (or, at the Investor’s option, destroy,
with such destruction to be confirmed promptly in writing (including by e-mail)) all copies of Confidential Material in the possession
of the Investor and any Investor Representative, except to the extent copies are (a) required to be maintained by the Investor
or any Investor Representative to assure compliance with applicable laws or regulations or (b) necessary to comply with bona-fide,
general document retention policies or electronic backup and archival procedures maintained in the ordinary course of business.
Notwithstanding the return or destruction of Confidential Material, the Investor and any Investor Representatives shall continue
to be bound by their respective obligations of confidentiality and other obligations hereunder during the Term (as hereinafter
defined).

 

		9.	The Confidential Material is and shall remain the sole property of the Company. The Investor agrees
that the Company has not granted Investor, the Investor Affiliated Director or any Investor Representative any license, copyright
or similar right with respect to any of the Confidential Material or any other information provided to you, the Investor Affiliated
Director or any Investor Representative by or on behalf of the Company or any Company Representative.

 

		10.	Unless otherwise agreed to by the Company in writing, the Investor and any Investor Representatives
shall not, directly or indirectly, initiate contact or communication with any Company Representative other than (i) directors of
the Company, (ii) the Company’s Chief Executive Officer, Chief Financial Officer or General Counsel (the “Authorized
Representatives”) or (iii) any legal or financial advisor to the Company designated in writing by any of the foregoing,
concerning Confidential Material or seek any information in connection therewith from any such person other than by contacting
one or more of the Authorized Representatives; provided that the foregoing restriction shall not apply to the Investor Affiliated
Director (or any replacement therefore, if applicable).

 

    4

     

    

 

		11.	It is understood and agreed that the Investor Affiliated Director shall not disclose to you or
your Investor Representatives any Legal Advice (as hereinafter defined) that may be included in the Confidential Material with
respect to which such disclosure would constitute waiver of the Company’s attorney-client privilege or attorney work product
privilege; provided, however, that the Investor Affiliated Director may provide such disclosure of Legal Advice if
the Investor Affiliated Director shall not have taken any action, or failed to take any action, that has the purpose or effect
of waiving attorney-client privilege or attorney work product privilege with respect to any portion of such Legal Advice and if
reputable outside legal counsel provides the Company with a written opinion that such disclosure will not waive the Company’s
attorney client privilege or attorney work product privilege with respect to such Legal Advice. “Legal Advice”
as used herein shall be solely and exclusively limited to the advice provided by legal counsel (whether in house or outside counsel)
and shall not include factual information or the formulation or analysis of business strategy that in either case is not protected
by the attorney-client, attorney work product privilege or any other applicable privilege.

 

		12.	All obligations under this Agreement shall automatically terminate twelve (12) months after the
date on which the Investor Affiliated Director (or any replacement therefor) ceases to serve as a director of the Company (the
 “Term”); provided that such termination shall not relieve any party hereto from its responsibilities
in respect of any breach of this Agreement prior to such termination; provided, further, that the Investor shall
maintain, in accordance with the confidentiality obligations set forth herein, any Confidential Material constituting trade secrets
for such longer time as such information constitutes a trade secret of the Company as defined under 18 U.S.C. § 1839(3).

 

		13.	Investor acknowledges and agrees that irreparable injury to the Company would occur in the event
of an actual breach by an Investor Party of this Agreement and that such injury would not be adequately compensable by the remedies
available at law (including the payment of money damages). It is accordingly agreed that the Company shall be entitled to specific
enforcement of, and injunctive relief to prevent any breach of, the terms hereof (without the requirement of posting a bond or
other security), and Investor will not take action, directly or indirectly, in opposition to the Company seeking such relief on
the grounds that any other remedy or relief is available at law or in equity. This Section 13 is not the exclusive remedy
for violation of this Agreement.

 

		14.	This Agreement is to be governed by the laws of England or Wales. Any matter, claim or dispute
arising out of or in connection with this Agreement, whether contractual or non-contractual, is to be governed by and determined
in accordance with such law. The courts of England and Wales are to have exclusive jurisdiction to settle any dispute, whether
contractual or non-contractual, arising out of or in connection with this Agreement. Any proceeding, suit or action arising out
of or associated with this Agreement or the negotiation, existence, validity or enforceability of this Agreement, whether contractual
or non-contractual (“Proceedings”) shall be brought only in the courts of England and Wales. Each party hereto
waives (and agrees not to raise) any objection, on the ground of forum non conveniens or on any other ground, to the taking of
Proceedings in the courts of England and Wales. Each Party also agrees that a judgment against it in Proceedings brought in England
and Wales shall be conclusive and binding upon it and may be enforced in any other jurisdiction. Each party hereto irrevocably
submits and agrees to submit to the exclusive jurisdiction of the courts of England and Wales.

 

    5

     

    

 

		15.	Each of the Company and Investor hereby represent and warrant that (i) it has all requisite corporate
or other power and authority to execute and deliver this Agreement and to perform its respective obligations hereunder, (ii) this
Agreement has been duly authorized, executed and delivered by it, and is a valid and binding obligation, enforceable against the
Investor in accordance with its terms, (iii) this Agreement will not result in a violation of any terms or conditions of any agreements
to which it is a party or by which it may otherwise be bound or of any law, rule, license, regulation, judgment, order or decree
governing or affecting it, and (iv) the entry into this Agreement by it does not require approval by any owners or holders of any
equity interest in it (except as has already been obtained).

 

		16.	This Agreement may be executed in two (2) or more counterparts, each of which shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each of the parties hereto and delivered
to the other party hereto (including by means of electronic delivery or facsimile). For the avoidance of doubt, neither party hereto
shall be bound by any contractual obligation to the other party hereto (including by means of any oral agreement) until all counterparts
to this Agreement have been duly executed by each of the parties hereto and delivered to the other party hereto (including by means
of electronic delivery).

 

		17.	If any term, provision, covenant or restriction of this Agreement is held by a court of competent
jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated. The parties hereto agree to use
their commercially reasonable best efforts to agree upon and substitute a valid and enforceable term, provision, covenant or restriction
for any of such that is held invalid, void or enforceable by a court of competent jurisdiction.

 

		18.	This Agreement and the Settlement Agreement contain the entire understanding of the parties hereto
with respect to the matters provided for herein. There are no restrictions, agreements, promises, representations, warranties,
covenants or undertakings between the parties hereto other than those expressly set forth herein and therein. No modifications
of this Agreement can be made except in writing signed by an authorized representative of each of the parties hereto. No failure
on the part of any party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of such right, power or remedy by such party preclude any other or further exercise
thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any
other remedies provided by law. The terms and conditions of this Agreement shall be binding upon, inure to the benefit of, and
be enforceable by the parties hereto and their respective successors, heirs, executors, legal representatives, and permitted assigns.
No party hereto shall assign this Agreement or any rights or obligations hereunder without, with respect to Investor, the prior
written consent of the Company, and with respect to the Company, the prior written consent of Investor. This Agreement is solely
for the benefit of the parties hereto and the Company’s affiliates and is not enforceable by any other persons or entities.

 

    6

     

    

 

		19.	Any notices, consents, determinations, waivers or other communications required or permitted to
be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or
electronically generated and kept on file by the sending party); (iii) upon confirmation of receipt, when sent by email (provided
such confirmation is not automatically generated); or (iv) one (1) business day after deposit with a nationally recognized overnight
delivery service, in each case properly addressed to the party hereto to receive the same. The addresses and facsimile numbers
for such communications shall be:

 

	If to the Company:
	 
	 	Valaris plc
	 	110 Cannon Street
	 	London, EC4N 6EU, United Kingdom
	 	Attention: Michael T. McGuinty
	 	Email: michael.mcguinty@valaris.com

 

	With a copy (which shall not constitute notice) to:

 

	 	Skadden, Arps, Slate, Meagher & Flom LLP 4 Times Square
	 	New York, NY 10036
	 	Attention:	Richard J. Grossman
		Telephone:	(212) 735-2116
	 	Facsimile:	(917) 777-2116

	   	Email:Richard.Grossman@skadden.com  

 

	 	and

 

	 	Slaughter and May
	 	One Bunhill Row
	 	London, EC1Y 8YY
	 	United Kingdom
	 	Attention: Hywel Davies and Christian Boney
	 	Email:	hywel.davies@slaughterandmay.com
	 	 	christian.boney@slaughterandmay.com

 

    7

     

    

 

	If to the Investor:
	 
	 	Luminus Management, LLC
	 	1700 Broadway, 26th Floor
	 	New York, NY 10019
	 	Attention: Shawn Singh
	 	Email:	ssingh@luminusmgmt.com

 

	With a copy (which shall not constitute notice) to:
	 
	 	Schulte Roth & Zabel LLP
	 	919 Third Avenue
	 	New York, NY 10022
	 	Attention: Marc Weingarten and Eleazer Klein
		Email:	marc.weingarten@srz.com
	 	 	eleazer.klein@srz.com

 

    8

     

    

 

Please confirm your agreement
with the foregoing by signing and returning one copy of this Agreement to the undersigned, whereupon this Agreement shall become
a binding agreement among each of the parties hereto.

 

	 	Very truly yours,
	 	 
	 	VALARIS PLC
	 	 
	 

	 	By:	 

	 	Name: Michael T. McGuinty
	 	Title: Senior Vice President – General Counsel & Secretary

 

[Signature Page to Non-Disclosure Agreement]

 

    

     

    

 

Confirmed and agreed to as of
the date first above written:

 

	LUMINUS MANAGEMENT LLC
	 
	 
	By:	        	       
	Name:
	Title:

 

[Signature Page to Non-Disclosure Agreement]

 

    

     

    

 

EXHIBIT D

 

JOINT PRESS RELEASE

 

    

     

    

 

	 	
        110 Cannon Street

        London, England EC4N 6EU

        www.valaris.com
	Press Release

 

Valaris Appoints Adam Weitzman to Board
of Directors

 

Comprehensive
Board Refreshment Program Appoints Mr. Weitzman and Two Independent Directors in the Last Three Months

 

Luminus Management
Commits to Support Slate of Directors at 2020 Annual Meeting of Valaris Shareholders

 

London, January 27, 2020 ... Valaris
plc (NYSE: VAL) (“Valaris” or the “Company”) today announced that, as part of the Board’s comprehensive
refreshment program, it has agreed to appoint Adam Weitzman to its Board of Directors. Mr. Weitzman will also serve on the Finance
Committee, to assist in the Board’s oversight of the Company’s capital structure and financial strategies, as well
as the Compensation Committee. With this appointment, the Valaris Board of Directors will be comprised of 12 directors, 11 of whom
will stand for re-election at the Company’s 2020 Annual General Meeting of Shareholders.

 

Mr. Weitzman, a Partner at Luminus Management,
LLC (“Luminus”), has been investing in offshore drilling companies and other energy-related public companies for more
than a decade. He brings with him an expertise in debt and equity capital markets, asset allocation and risk management. Luminus
owns approximately 18.7% of the outstanding shares of Valaris.

 

Carl G. Trowell, Executive Chairman of
the Board of Directors, said, “We welcome Adam to the Board and appreciate Luminus’ ongoing support for the Company.
After extensive discussions with Luminus, we have aligned on the Company’s capital allocation priorities going forward, including
the importance of optimizing our financial runway and liquidity position, and utilizing the tools available to the Company to create
additional long-term shareholder value. We remain focused on delivering the merger-related synergies and additional cost savings
we previously announced, and capitalizing on increasing customer demand and higher day rates. As we execute our long-term strategy,
we look forward to benefitting from Adam’s capital markets expertise and his perspective as a representative of our largest
shareholder.”

 

Mr. Weitzman said, “Luminus applauds
Valaris’ recent moves to augment the Board, and we are pleased to have reached a comprehensive agreement with Valaris. We
look forward to contributing to the Company’s ongoing efforts to solidify its position as the leading offshore driller. We
appreciate the Board’s responsiveness to our concerns, including the appointment of three new directors with impressive expertise
in capital structure and capital markets, and the formation of the Finance Committee. I look forward to working closely with the
entire Board to advance our shared goal of driving long-term shareholder value.”

 

The appointment of Mr. Weitzman is part
of the Company’s comprehensive Board refreshment and corporate governance enhancement efforts, including (1) the addition
of Georges Lambert and Frederick Arnold as new independent directors, augmenting the Board’s expertise in equity and debt
capital markets and corporate governance; (2) the announcement of three directors stepping down; (3) a commitment to appoint an
independent Chairman in 2020; and (4) the formation of the Finance Committee.

 

    

     

    

 

In connection with Mr. Weitzman’s
appointment, Valaris has entered into an agreement with Luminus under which Luminus has agreed, among other things, to maintain
certain minimum ownership levels in order to retain its Board seat and to support the Company’s director slate at the 2020
Annual General Meeting of Valaris shareholders. The agreement will be filed by the Company on a Form 8-K with the U.S. Securities
and Exchange Commission.

 

About Adam Weitzman

 

Adam Weitzman is a Partner at Luminus Management,
where he has worked since 2008. At Luminus, Mr. Weitzman oversees portfolios which invest across the capital structure of Offshore
Drilling, Mining, Refining, and Solar companies. Mr. Weitzman is also part of the firm’s risk working group. Previously,
Mr. Weitzman worked at SAC Capital Management, where he was an analyst for a long/short equity strategy. Prior to that, Mr. Weitzman
was an investment banker at Goldman Sachs, where he advised on M&A and financing transactions for diversified industrial companies.
Mr. Weitzman graduated from the University of Pennsylvania, Summa Cum Laude, with a Bachelor of Science in Economics from The Wharton
School.

 

About Valaris plc

 

Valaris plc (NYSE: VAL) is the industry
leader in offshore drilling services across all water depths and geographies. Operating a high-quality rig fleet of ultra-deepwater
drillships, versatile semisubmersibles and modern shallow-water jackups, Valaris has experience operating in nearly every major
offshore basin. With an unwavering commitment to safety and operational excellence, and a focus on technology and innovation,
Valaris was rated first in total customer satisfaction in the latest independent survey by EnergyPoint Research - the ninth consecutive
year that the Company has earned this distinction. Valaris plc is an English limited company (England No. 7023598) with its corporate
headquarters located at 110 Cannon Street, London EC4N 6EU. To learn more, visit our website at www.valaris.com.

 

Forward-Looking Statements

 

Statements contained in this press release
that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include words or phrases
such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “plan,”
 “project,” “could,” “may,” “might,” “should,” “will” and
similar words and specifically include statements involving synergies and future cost savings; anticipated benefits, opportunities
and effects of the merger between Ensco and Rowan; expected financial performance; optimization of capital structure; and general
market, business and industry conditions, trends and outlook. The forward-looking statements contained in this press release are
subject to numerous risks, uncertainties and assumptions that may cause actual results to vary materially from those indicated,
including actions by regulatory authorities, rating agencies or other third parties; actions by our security holders; costs and
difficulties related to the integration of Ensco and Rowan and the related impact on our financial results and performance; our
ability to repay debt and the timing thereof; availability and terms of any financing; commodity price fluctuations, customer demand,
new rig supply, downtime and other risks associated with offshore rig operations, relocations, severe weather or hurricanes; changes
in worldwide rig supply and demand, competition and technology; future levels of offshore drilling activity; governmental action,
civil unrest and political and economic uncertainties; terrorism, piracy and military action; risks inherent to shipyard rig construction,
repair, maintenance or enhancement; possible cancellation, suspension or termination of drilling contracts as a result of mechanical
difficulties, performance, customer finances, the decline or the perceived risk of a further decline in oil and/or natural gas
prices, or other reasons, including terminations for convenience (without cause); our ability to enter into, and the terms of,
future drilling contracts; any failure to execute definitive contracts following announcements of letters of intent, letters of
award or other expected work commitments; the outcome of litigation, legal proceedings, investigations or other claims or contract
disputes; governmental regulatory, legislative and permitting requirements affecting drilling operations; our ability to attract
and retain skilled personnel on commercially reasonable terms; environmental or other liabilities, risks or losses; debt restrictions
that may limit our liquidity and flexibility; and cybersecurity risks and threats. In addition to the numerous factors described
above, you should also carefully read and consider “Item 1A. Risk Factors” in Part I and “Item 7. Management's
Discussion and Analysis of Financial Condition and Results of Operations” in Part II of our most recent annual report on
Form 10-K, as updated in our subsequent quarterly reports on Form 10-Q, which are available on the SEC's website at www.sec.gov
or on the Investor Relations section of our website at www.valaris.com. Each forward-looking statement speaks only as of the date
of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements, except
as required by law.

 

    

     

    

 

Important Additional Information and
Where to Find It

 

In connection with the Company’s
2020 annual general meeting of shareholders (the “Annual Meeting”), the Company will file a proxy statement (the “Proxy
Statement”) with the SEC in connection with the solicitation of proxies for the Annual Meeting. SHAREHOLDERS ARE URGED TO
READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT THE COMPANY WILL
FILE WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

 

Shareholders will be able to obtain,
free of charge, copies of the Proxy Statement, any amendments or supplements thereto and any other documents when filed by
the Company with the SEC in connection with the Annual Meeting at the SEC’s website (http://www.sec.gov), at the
Company’s website (https://www.valaris.com/investors/ financials/sec-filings/default.aspx) or by contacting Investor
Relations by phone at 713-789-1400, by email at ir.hdqrs@valaris.com or by mail at Valaris plc, Attention: Investor
Relations, 5847 San Felipe, Suite 3300, Houston, Texas 77057.

 

Participants in the Solicitation

 

The Company and its directors, executive
officers and certain other members of management may be deemed to be participants in the solicitation of proxies from shareholders
in connection with the Annual Meeting. Additional information regarding the identity of these potential participants and their
direct or indirect interests, by security holdings or otherwise, will be set forth in the Proxy Statement and other materials to
be filed with the SEC in connection with the Annual Meeting. Information relating to the foregoing can also be found in the Company’s
definitive proxy statement for its 2019 annual general meeting of shareholders (the “2019 Proxy Statement”), filed
with the SEC on March 29, 2019. To the extent holdings of the Company’s securities by such potential participants (or the
identity of such participants) have changed since the information printed in the 2019 Proxy Statement, such information has been
or will be reflected on statements of changes in beneficial ownership on Forms 3, 4 and 5 filed with the SEC. You may obtain free
copies of these documents using the sources indicated above.

 

Investor & Media Contacts

 

Nick Georgas

Vice President – Investor Relations
and Corporate Communications

+1-713-430-4607

 

Tim Richardson

Manager – Investor Relations

+1-713-430-4490Exhibit

Energizer Holdings, Inc. 
Omnibus Incentive Plan 
		
	I.
	General Provisions

A.Purpose of the Plan
The purpose of the Energizer Holdings, Inc. Omnibus Incentive Plan (the “Plan”) is to enhance the profitability and value of the Company for the benefit of its shareholders by providing for incentive compensation award opportunities to attract, retain and motivate officers, other key employees and non-employee directors who make important contributions to the success of the Company.
This Plan document is an omnibus document which includes, in addition to the Plan, separate sub-plans (“Sub Plans”) that permit offerings of grants to employees of certain foreign subsidiaries. Offerings under the Sub Plans may be made in particular locations outside the United States of America and shall comply with local laws applicable to offerings in such foreign jurisdictions. The Plan shall be a separate and independent plan from the Sub Plans, but the total number of shares of Stock authorized to be issued under the Plan applies in the aggregate to both the Plan and the Sub Plans.
The Plan replaces and supersedes the Energizer Holdings, Inc. Equity Incentive Plan (the “Prior Plan”) and is effective upon the date approved by the Company’s stockholders.  Upon approval of the Plan by the Company’s stockholders, no new awards shall be made under the Prior Plan, although outstanding awards previously made under the Prior Plan shall continue to be governed by the terms of the Prior Plan.  Shares of Common Stock that are subject to outstanding awards under the Prior Plan that expire, are forfeited or otherwise terminate unexercised may be subjected to new Awards under the Plan, as provided in Section I.D.
B.Definitions of Terms as Used in the Plan 
“Affiliate” shall mean any entity in an unbroken chain of entities beginning with the Company if, at the time of the granting of an Award, each of the entities other than the last entity in the unbroken chain owns stock (or beneficial ownership for non-corporate entities) possessing 50 percent or more of the total combined voting power of all classes of stock (or beneficial ownership for non-corporate entities) in one of the other entities in such chain.
“Award” shall mean an Option, a Stock Appreciation Right, a Cash Bonus Award, or any Other Stock Award granted under the terms of the Plan, which shall include such agreements, including but not limited to, non-competition provisions, as determined in the sole discretion of the Committee.
“Award Agreement” shall mean the written or electronic document(s) evidencing an Award granted under the Plan.
“Board” shall mean the Board of Directors of the Company.
“Cash Bonus Award” shall mean an Award of a cash bonus pursuant to Section V.
“Change of Control” shall mean either of the following, provided that the following constitutes a “change in the ownership” or a “change in the effective control” of the Company or a “change in the ownership of a substantial portion of the Company’s assets” within the meaning of Code Section 409A:
(i)    The acquisition by one person, or more than one person acting as a group, of ownership of stock (including Common Stock) of the Company that, together with stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of the Company. Notwithstanding the above, if any person or more than one person acting as a group, is considered to own more than 50% of the total fair market value or total voting power of the stock of the Company, the acquisition of additional stock by the same person or persons will not constitute a Change of Control; or
(ii)    A majority of the members of the Company’s Board of Directors is replaced during any 12-month period by directors whose appointment or election is not endorsed by a majority of the members of the Company’s Board of Directors before the date of the appointment or election.
(iii)    The sale, transfer or other disposition of all or substantially all of the business or assets of the Company.
Persons will not be considered to be acting as a group solely because they purchase or own stock of the same corporation at the same time, or as a result of the same public offering. However, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar 

business transaction with the Company.
“Code” shall mean the Internal Revenue Code of 1986, as amended, and the regulations and other guidance promulgated thereunder.
“Committee” shall mean the Human Capital Committee of the Board, or any successor committee the Board may designate to administer the Plan, provided such Committee consists of two or more individuals. Each member of the Committee shall be (i) an “independent director” under the rules of the stock exchange on which the Company’s shares of Common Stock are listed, and (ii) a “Non-Employee Director” within the meaning of Rule 16b-3 under the Exchange Act, or otherwise qualified to administer the Plan as contemplated by that Rule or any successor Rule under the Exchange Act.
“Common Stock” shall mean Energizer Holdings, Inc. $.01 par value Common Stock or common stock of the Company outstanding upon the reclassification of the Common Stock or any other class or series of common stock, including, without limitation, by means of any stock split, stock dividend, creation of targeted stock, spin-off or other distributions of stock in respect of stock, or any reverse stock split, or by reason of any recapitalization, merger or consolidation of the Company.
“Company” shall mean Energizer Holdings, Inc. a Missouri corporation, or any successor to all or substantially all of its business by merger, consolidation, purchase of assets or otherwise.
“Competition” shall mean, directly or indirectly, owning, managing, operating, controlling, being employed by (whether as an employee, consultant, independent contractor or otherwise, and whether or not for compensation) or rendering services to any person, firm, corporation or other entity, in whatever form, engaged in any business of the same type as any business in which the Company or its Affiliates is engaged or in which they have proposed to be engaged in and in which the recipient of an Award has been involved to any extent (on other than a de minimus basis) at any time during the previous one (1) year period, in any locale of any country in which the Company or its Affiliates conducts business. Competition shall not include owning not more than one percent of the total shares of all classes of stock outstanding of any publicly held entity engaged in such business.
“Corporate Officer” shall mean any President, Chief Executive Officer, Corporate Vice President, Controller, Secretary or Treasurer of the Company, and any other officers designated as corporate officers by the Board.
“Director” shall mean any member of the Board.
“Effective Date” shall mean the effective date of the Plan, as set forth in Section X.
“Employee” shall mean any person who is employed by the Company or an Affiliate, including Corporate Officers.
“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
“Fair Market Value” of the Common Stock shall mean the closing price as reported on the Composite Tape of the New York Stock Exchange, Inc. on the date that such Fair Market Value is to be determined, or if no shares were traded on the determination date, the immediately following next day on which the Common Stock is traded, or the fair market value as determined by any other method that may be required in order to comply with or to conform to the requirements of applicable laws or regulations.
“Incentive Stock Options” shall mean Options that qualify as such under Section 422 of the Code.
“Non-Qualified Stock Options” shall mean Options that do not qualify as Incentive Stock Options.
“Option” shall mean the right, granted under the Plan, to purchase a specified number of shares of Common Stock, at a fixed price for a specified period of time.
“Other Stock Award” shall mean any Award granted under Section IV of the Plan.
“Participant” shall mean any eligible individual who has been selected by the Committee to participate in the Plan and to receive an Award under the Plan.
“Plan” shall mean this restated Energizer Holdings, Inc. Omnibus Incentive Plan.
“Prior Plan” shall have the meaning given to it in Section I.A of this Plan.
 “Restricted Stock Award” shall mean an Award of shares of Common Stock on which are imposed restrictions on transferability or other shareholder rights, including, but not limited to, restrictions which subject such Award to a “substantial risk of forfeiture” as defined in Section 83 of the Code.
“Restricted Stock Unit” shall mean a right granted under the terms of the Plan to receive shares of Common 

Stock or cash equal to either (i) a set number of shares of Common Stock or (ii) a number of shares of Common Stock determined under a formula or other criteria, as of specified vesting and/or payment dates.
“Stock Appreciation Right” shall mean a right granted under the terms of the Plan to receive an amount equal to the excess of the Fair Market Value of one share of Common Stock as of the date of exercise of the Stock Appreciation Right over the price per share of Common Stock specified in the Award Agreement of which it is a part.
“Stock Bonus” shall mean an Award of shares of Common Stock granted under Section IV.D of the Plan.
“Termination for Cause” shall mean, a Participant’s termination of employment with the Company or an Affiliate because of the Participant’s willful engaging in gross misconduct that materially injures the Company (as determined in good faith by the Committee), or the Participant’s conviction of a felony or a plea of nolo contendere to such a crime, provided, however, that a Termination for Cause shall not include termination attributable to (i) poor work performance, bad judgment or negligence on the part of the Participant, (ii) an act or omission believed by the Participant in good faith to have been in or not opposed to the best interests of the Company and reasonably believed by the Participant to be lawful, or (iii) the good faith conduct of the Participant in connection with a Change of Control of the Company (including opposition to or support of such Change of Control).
“Termination for Good Reason” shall mean, unless in the case of a particular Award the applicable Award Agreement states otherwise, the Participant having “good reason” to terminate a Participant’s employment or service, as defined in any existing employment, consulting or any other agreement between the Participant and the Company or an Affiliate in effect at the time of such termination or, in the absence of such an employment, consulting or other agreement, upon  the occurrence, without a Participant’s prior express written consent, of any of the following circumstances (i) a material diminution in the Participant's base compensation, (ii) a material diminution in the Participant's authority, duties, or responsibilities, (iii) a material diminution in the authority, duties, or responsibilities of the supervisor to whom the Participant is required to report, including a requirement that a Participant report to a corporate officer or employee instead of reporting directly to the board of directors of a corporation (or similar governing body with respect to an entity other than a corporation), (iv) a material diminution in the budget over which the Participant retains authority, (v) a material change in the geographic location at which the Participant must perform the services, and (vi) any other action or inaction that constitutes a material breach by the Company or an Affiliate of the agreement under which the Participant provides services, provided the Participant provides written notice to the Company of the existence of the condition described in this section within 30 days of the initial existence of the condition, and provided further that the Company or an Affiliate does not remedy such condition within 30 days of receipt of such notice.
C.Scope of Plan and Eligibility
Any Employee selected by the Committee, any member of the Board, and consultants and advisors to the Company or an Affiliate selected by the Committee shall be eligible for any Award contemplated under the Plan.
D.Authorization and Reservation
1.Subject to Section IX.F, the aggregate number of shares of Common Stock available for grants of Awards under the Plan from and after the Effective Date shall not exceed the sum of (i) 6,500,000 shares of Common Stock plus, (ii) one (1) share of Common Stock for every one (1) share of Common Stock available for award under the Prior Plan as of the date November 29, 2019.  The reserves may consist of authorized but unissued shares of Common Stock or of reacquired shares, or both. Awards other than Options and Stock Appreciation Rights will be counted against the reserve in a 2-to-1 ratio.  Any shares of Common Stock subject to an award under the Prior Plan and that expires, is forfeited, otherwise terminates, or is settled in cash, after the Effective Date, shall be added to the shares of Common Stock reserved for issuance under this Plan.
2.Other than with respect to Awards of Options or Stock Appreciation Rights, shares of Common Stock withheld by, or otherwise remitted to, the Company to satisfy an Employee’s tax withholding obligations with respect to Awards shall be deducted from the number of shares of Common Stock delivered to a Plan Participant pursuant to such Award for purposes of determining the number of shares of Common Stock acquired pursuant to the Plan.  Notwithstanding any to the contrary contained herein, the following shares of Common Stock shall not be added to the shares of Common Stock authorized for grant under this Section I.D.2: (A) shares of Common Stock tendered by the Participant or withheld by the Company in payment of the purchase price of an Option or, after November 29, 2019, an option under the Prior Plan, (B) shares of Common Stock tendered by the Participant or withheld by the Company to satisfy applicable tax withholding obligations with respect to Options or Stock Appreciation Rights, or after November 29, 2019, options or stock appreciation rights under the Prior Plan, (C) shares of Common Stock subject to a Stock Appreciation Rights, or after November 29, 2019, a stock appreciation right under the Prior Plan that are not issued in connection with its stock settlement or exercise thereof, and (D) shares of Common Stock reacquired by the Company on the open market or otherwise using cash proceeds from the exercise of Options or, after November 29, 2019, options 

under the Prior Plan.
3.The following will not be applied to the share limitations of subsection 1 above: (i) dividends or dividend equivalents paid in cash in connection with outstanding Awards, (ii) any shares of Common Stock subject to an Award under the Plan which Award is forfeited, cancelled, terminated, expires or lapses for any reason, (iii) shares of Common Stock and any Awards that are granted through the settlement, assumption, or substitution of outstanding awards previously granted, or through obligations to grant future awards, as a result of a merger, consolidation, spin-off or acquisition of the employing company with or by the Company, and (iv) Awards under the Plan which are payable in cash will not be counted against the reserve unless actual payment is made in shares of Common Stock instead of cash. If an Award is to be settled in cash, the number of shares of Common Stock on which the Award is based shall not count toward the share limitations of subsection 1.
4.No fractional shares of Common Stock may be issued under this Plan. Fractional shares of Common Stock will be rounded down to the nearest whole share of Common Stock.
5.No more than 6,500,000 shares of Common Stock may be granted as Incentive Stock Options under the Plan.
E.Grant of Awards and Administration of the Plan
1.The Committee (or, in the Board’s sole discretion or in the absence of the Committee, the Board) shall determine those Employees eligible to receive Awards and the amount, type and terms of each Award, subject to the provisions of the Plan. The Board shall determine the amount, type and terms of each Award to a Director in his or her capacity as a Director, subject to the provisions of the Plan. In making any determinations under the Plan, the Committee or the Board, as the case may be, shall be entitled to rely on reports, opinions or statements of officers or employees of the Company, as well as those of counsel, public accountants and other professional or expert persons. Any such report, opinions or statements may take into account Award grant practices, including the rate of grant of Awards and any performance criteria related to such awards, at publicly traded or privately held corporations that are similar to or are industry peers with the Company. All determinations, interpretations and other decisions under or with respect to the Plan or any Award by the Committee or the Board, as the case may be, shall be final, conclusive and binding upon all parties, including without limitation, the Company, any Participant, and any other person with rights to any Award under the Plan, and no member of the Board or the Committee shall be subject to individual liability with respect to the Plan.
2.The Committee (or, in the Board’s sole discretion or in the absence of the Committee, the Board) shall administer the Plan and, in connection therewith, it shall have full power and discretionary authority to: (i) construe and interpret the Plan, (ii) establish rules and regulations with respect to the Plan’s operations and Awards, (iii) determine the number of shares of Common Stock to be covered by, or with respect to which payments, rights or other matters are to be calculated in connection with, Awards, (iv) determine the terms and conditions of any Award, (v) determine whether and to what extent, and under what circumstances Awards may be settled or exercised in cash, shares of Common Stock, other securities, other Awards or other property, or canceled, forfeited, or suspended and the method or methods by which Awards may be settled, exercised, cancelled, forfeited or suspended, (vi) determine whether, to what extent and under what circumstances the delivery of cash, shares of Common Stock, other securities, other Options, other property and other amounts payable with respect to an Award shall be deferred either automatically or at the election of the holder thereof or of the Committee, (vii) accelerate the exercisability of any Option or Stock Appreciation Right and to remove any restriction on any Award, (viii) interpret, administer, reconcile any inconsistency, correct any defect and/or supply any omission in the Plan and any instrument or agreement relating to, or Award granted under, the Plan; (ix) establish, amend, suspend, or waive such rules and regulations, (x) appoint such agents as it shall deem appropriate for the proper administration of the Plan, (xi) perform all other acts it believes reasonable and proper, including the power to delegate responsibility to others to assist it in administering the Plan, to the extent permitted by applicable laws, and (xii)  adopt sub-plans or establish special rules for grants to individuals outside the U.S. To the extent, however, that such construction and interpretation or establishment of rules and regulations relates to or affects any Awards granted to a Director in his or her capacity as a Director, the Board must ratify such construction, interpretation or establishment.
3.The Committee, or if no Committee has been appointed, the Board, may delegate administration of the Plan to a committee or committees of one or more members of the Board, and the term “Committee” shall apply to any person or persons to whom such authority has been delegated. The Committee shall have the power to delegate to a subcommittee any of the administrative powers the Committee is authorized to exercise (and references in this Plan to the Board or the Committee shall thereafter be to the committee or subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the Plan, as may be adopted from time to time by the Board. The Board may abolish, suspend or supersede the Committee at any time and revest in the Board the administration of the 

Plan. The members of the Committee shall be appointed by and serve at the pleasure of the Board. From time to time, the Board may increase or decrease the size of the Committee, add additional members to, remove members (with or without cause) from, appoint new members in substitution therefor, and fill vacancies, however, caused, in the Committee. Subject to the limitations prescribed by the Plan and the Board, the Committee may establish and follow such rules and regulations for the conduct of its business as it may determine to be advisable. Any authority granted to the Committee may also be exercised by the Board or another committee of the Board. To the extent that any permitted action taken by the Board conflicts with action taken by the Committee, the Board action shall control. Without limiting the generality of the foregoing, to the extent the Board has delegated any authority under this Plan to another committee of the Board, such authority shall not be exercised by the Committee unless expressly permitted by the Board in connection with such delegation.
4.During the term of the Plan, (i) the aggregate number of shares of Common Stock that may be the subject of performance-based Awards that may be granted to a Participant during any one fiscal year may not exceed 1,000,000 or, in the event such Award is paid in cash, the equivalent cash value thereof on the date of vesting, and (ii) the aggregate number of shares of Common Stock that may be the subject of time-based Awards that may be granted to a Participant during any one fiscal year may not exceed 1,000,000 or, in the event such Award is paid in cash, the equivalent cash value thereof on the date of vesting.  The maximum amount that can be paid to any Participant in any one fiscal year pursuant to a Cash Bonus Award shall be $10,000,000.  The maximum number of shares with regard to which Options and Stock Appreciation Rights may be granted to any individual during any one fiscal year is 1,000,000. These amounts are subject to adjustment as provided in Section IX.F. below. Awards granted in a fiscal year but cancelled during that same year will continue to be applied against the annual limit for that year, despite cancellation. Awards granted under the Plan shall be evidenced in the manner prescribed by the Committee from time to time pursuant to an Award Agreement. The Committee may require that a recipient execute and deliver, through written or electronic means, his or her acceptance of the Award.
5.Other than Awards to Directors, Awards settled in shares of Common Stock shall have a minimum vesting or exercise schedule of not less than a one (1) year period, provided, that the Committee can grant Awards of up to 5% of the shares authorized under the Plan with a shorter vesting or exercise period.  The foregoing limitations do not preclude Awards that vest or become exercisable earlier due to (i) circumstances such as death, retirement, or involuntary termination of employment, (ii) the achievement of performance objectives over a period of at least one (1) year, or (iii) a determination by the Company for regulatory or other considerations to provide an equity award in excess of that which would have been awarded to the individual under the cash equity policy in effect for the performance year.
		
	II.
	Stock Options

A.Description
The Committee may grant Incentive Stock Options and/or Non-Qualified Stock Options to Employees eligible to receive Awards under the Plan. The Board may grant Non-Qualified Stock Options to Directors under the Plan.
B.Terms and Conditions
1.Each Option shall have such terms and conditions as the Committee, or in the case of Awards granted to Directors, the Board, may determine, subject to the provisions of the Plan.
2.The option price of shares of Common Stock subject to any Option shall not be less than the Fair Market Value of the Common Stock on the date that the Option is granted.
3.The Committee, or in the case of Awards granted to Directors, the Board, shall determine the vesting schedules and the terms, conditions and limitations governing exercisability of Options granted under the Plan. Unless accelerated in accordance with its terms, an Option may not be exercised until a period of at least one (1) year has elapsed from the date of grant, and the term of any Option granted hereunder shall not exceed ten years.
4.The purchase price of any shares of Common Stock pursuant to exercise of any Option must be paid in full upon such exercise. The payment shall be made in cash, in United States dollars, by tendering shares of Common Stock owned by the Participant (or the person exercising the Option), through Net Exercise or Swap Exercise, each as described below, or any other means approved by the Committee prior to the date such Option is exercised.
Subject to any additional tax withholding provided for in Section IX.I., any individual electing a “Net Exercise” of an Option shall receive upon such net exercise a number of shares of Common Stock equal to the aggregate number shares of Common Stock being purchased upon exercise less the number of shares of Common Stock having a Fair Market Value equal to the aggregate purchase price of the shares of Common Stock as to which the Non-Qualified Stock Option is being exercised.

Subject to any additional tax withholding provided for in Section IX.I., any individual electing a “Swap Exercise” shall pay the purchase price of the Option by tendering shares of Common Stock owned by such individual prior to exercising the Option with a Fair Market Value equal to the exercise of the Option.
5.The terms and conditions of any Incentive Stock Options granted hereunder shall be subject to and shall be designed to comply with, the provisions of Section 422 of the Code, and any other administrative procedures adopted by the Committee from time to time. Incentive Stock Options may not be granted to any person who is not an Employee at the time of grant. To the extent that the aggregate Fair Market Value (determined at the time an Incentive Stock Option is granted) of the Shares with respect to which Incentive Stock Options are exercisable for the first time by an Optionee during any calendar year under all incentive stock option plans of the Company exceeds $100,000, the Options in excess of such limit shall be treated as Non-Qualified Stock Options. If, at the time an Incentive Stock Option is granted, the Employee recipient owns (after application of the rules contained in Section 424(d) of the Code, or its successor provision) shares of Common Stock possessing more than ten percent of the total combined voting power of all classes of stock of the Company or its subsidiaries, (a) the option price for such Incentive Stock Option shall be at least 110% of the Fair Market Value of the shares of Common Stock subject to such Incentive Stock Option on the date of grant and (b) such Option shall not be exercisable after the date five years from the date such Incentive Stock Option is granted.  Each Participant awarded an Incentive Stock Option under the Plan shall notify the Company in writing immediately after the date he or she makes a disqualifying disposition of any Common Stock acquired pursuant to the exercise of such Incentive Stock Option. A disqualifying disposition is any disposition (including any sale) of such Common Stock before the later of (i) two years after the Date of Grant of the Incentive Stock Option or (ii) one (1) year after the date the Participant acquired the Stock by exercising the Incentive Stock Option. The Company may, if determined by the Committee and in accordance with procedures established by it, retain possession of any Common Stock acquired pursuant to the exercise of an Incentive Stock Option as agent for the applicable Participant until the end of the period described in the preceding sentence, subject to complying with any instructions from such Participant as to the sale of such Common Stock.
6.In no event shall dividends or dividend equivalents (whether paid in cash or shares of Common Stock) be paid with respect to any Award of Options.
		
	III.
	Stock Appreciation Rights

The Committee, or in the case of Awards granted to Directors, the Board, may, in its discretion, grant Stock Appreciation Rights to Participants. Subject to the provisions of the Plan, the Committee or Board in its sole discretion shall determine the terms and conditions of the Stock Appreciation Rights. Such terms and conditions shall be set forth in a written Award Agreement. Each Stock Appreciation Right shall entitle the holder thereof to elect, prior to its cancellation or termination, to exercise such unit or option and receive either cash or shares of Common Stock, or both, as the Committee or Board may determine, in an aggregate amount equal in value to the excess of the Fair Market Value of the Common Stock on the date of such election over the Fair Market Value on the date of grant of the Stock Appreciation Right; except that if an Option is amended to include Stock Appreciation Rights, the designated Fair Market Value in the applicable Award Agreement may be the Fair Market Value on the date that the Option was granted. The term of any Stock Appreciation Right granted hereunder shall not exceed ten years. The Committee or Board may provide that a Stock Appreciation Right may only be exercised on one or more specified dates. Stock Appreciation Rights may be granted on a “free-standing” basis or in conjunction with all or a portion of the shares of Common Stock covered by an Option. In addition to any other terms and conditions set forth in the Award Agreement, Stock Appreciation Rights shall be subject to the following terms: (i) Stock Appreciation Rights, unless accelerated in accordance with their terms, may not be exercised within the first year after the date of grant, (ii) the Committee or Board, as the case may be, may, in its sole discretion, disapprove an election to surrender any Stock Appreciation Right for cash in full or partial settlement thereof, provided that such disapproval shall not affect the recipient’s right to surrender the Stock Appreciation Right at a later date for shares of Common Stock or cash, and (iii) no Stock Appreciation Right may be exercised unless the holder thereof is at the time of exercise a Participant that has been in continuous service with the Company or any Affiliate  since the date the Stock Appreciation Right was granted, except that the Committee or Board may permit the exercise of any Stock Appreciation Right for any period following the recipient’s termination of service or retirement or resignation from the Board, not in excess of the original term of the Award, on such terms and conditions as it shall deem appropriate and specify in the related Award Agreement.
In no event shall dividends or dividend equivalents (whether paid in cash or shares of Common Stock) be paid with respect to any Award of Stock Appreciation Rights.
		
	IV.
	Other Stock Awards

In addition to Options, the Committee or, in the case of Awards granted to Directors, the Board, may grant Other Stock Awards to Participants payable in Common Stock or cash, upon such terms and conditions as the Committee or 

Board may determine, subject to the provisions of the Plan. Other Stock Awards may include, but are not limited to, the following types of Awards:
A.Restricted Stock Awards and Restricted Stock Units
1.The Committee or, in the case of Awards granted to a Director in his or her capacity as Director, the Board, may grant Restricted Stock Awards to Participants, each of which consists of a grant of shares of Common Stock subject to specified vesting conditions, or Restricted Stock Units, each of which is the right to receive shares of Common Stock or the cash equivalent (or combination of Common Stock and cash) following satisfaction of specified vesting conditions. The terms and conditions applicable to such an Award shall be set forth in an Award Agreement.
2.The shares of Common Stock granted will be restricted and may not be sold, pledged, transferred or otherwise disposed of until the lapse or release of restrictions in accordance with the terms of the Award Agreement and the Plan. Prior to the lapse or release of restrictions, all shares of Common Stock which are the subject of a Restricted Stock Award are subject to forfeiture in accordance with Section VII of the Plan. During the restricted period, Restricted Stock may not be sold, assigned, transferred or otherwise disposed of, or mortgaged, pledged or otherwise encumbered. In order to enforce the limitations imposed upon the Restricted Stock Awards, the Committee may (i) cause a legend or legends to be placed on any certificates evidencing such Restricted Stock, and/or (ii) cause “stop transfer” instructions to be issued, as it deems necessary or appropriate.  Each Participant granted Restricted Stock shall execute and deliver to the Company an Award Agreement with respect to the Restricted Stock setting forth the restrictions and other terms and conditions applicable to such Restricted Stock. If the Committee determines that the Restricted Stock shall be held by the Company or in escrow rather than delivered to the Participant pending the release of the applicable restrictions, the Committee may require the Participant to additionally execute and deliver to the Company (A) an escrow agreement satisfactory to the Committee, if applicable, and (B) the appropriate blank stock power with respect to the Restricted Stock covered by such agreement. If a Participant shall fail to execute an agreement evidencing an Award of Restricted Stock and, if applicable, an escrow agreement and stock power, the Award shall be null and void. Subject to the restrictions set forth herein, the Participant generally shall have the rights and privileges of a stockholder as to such Restricted Stock, including the right to vote such Restricted Stock.
3.Restricted Stock Units that become payable in accordance with their terms and conditions shall be settled in cash, shares of Common Stock, or a combination of cash and shares, as determined by the Committee and set forth in an Award Agreement. Any person who holds Restricted Stock Units shall have no ownership interest in the shares of Common Stock to which the Restricted Stock Units relate unless and until payment with respect to such Restricted Stock Units is actually made in shares of Common Stock. The payment date shall with respect to Restricted Stock Units be set forth in the applicable Award Agreement. Restricted Stock Units may not be sold, assigned or transferred during the restricted period.
4.Notwithstanding any other provision of the Plan to the contrary, with respect to any Award that provides for or includes a right to dividends or dividend equivalents, if dividends are declared during the period that an Award is outstanding, such dividends (or dividend equivalents) shall either (i) not be paid or credited with respect to such Award or (ii) be accumulated but remain subject to vesting requirement(s) to the same extent as the applicable Award and shall only be paid at the time or times such vesting requirement(s) are satisfied and the Award is settled (as applicable).  No interest shall be included in the calculation of such additional cash payment. In no event will dividends or dividend equivalents be paid with respect to any Award which does not vest and/or meet its performance goals. Therefore, dividends and dividend equivalents shall be paid only on vested Restricted Stock Awards or Restricted Stock Units.
B.Stock Related Deferred Compensation
The Committee may, in its discretion, permit the deferral of payment of an Employee’s cash bonus, other cash compensation or an Award to a Participant under this Plan in the form of either Common Stock or Common Stock equivalents (with each such equivalent corresponding to a share of Common Stock), under such terms and conditions as the Committee may prescribe in the Award Agreement relating thereto or a separate election form made available to such Participant, including the terms of any deferred compensation plan under which such Common Stock equivalents may be granted. In addition, the Committee may, in any fiscal year, provide for an additional matching deferral to be credited to an Employee’s account under such deferred compensation plans. The Committee may also permit hypothetical account balances of other cash or mutual fund equivalents maintained pursuant to such deferred compensation plans to be converted, at the discretion of the participant, into the form of Common Stock equivalents, or to permit Common Stock equivalents to be converted into account balances of such other cash or mutual fund equivalents, upon the terms set forth in such plans as well as such other terms and conditions as the Committee may, in its discretion, determine. The Committee may, in its discretion, determine whether any deferral in the form of Common Stock equivalents, including deferrals under the terms of any deferred compensation plans of the Company, shall be paid on distribution in the form of cash or in shares of Common Stock. To the extent Code Section 409A is applicable, all actions pursuant to this Section 

IV must satisfy the requirements of Code Section 409A and the regulations and guidance thereunder, including but not limited to the following:
1.A Participant’s election to defer must be filed at such time as designated by the Committee, but in no event later than the December 31 preceding the first day of the calendar year in which the services are performed which relate to the compensation or Award being deferred. An election may not be revoked or modified after such December 31. However, notwithstanding the previous two sentences, if the compensation or Award is subject to a forfeiture condition requiring the Participant’s continued services for a period of at least 12 months from the date the Participant obtains the legally binding right to the compensation or Award, the Committee may permit a Participant to file an election on or before the 30th day after the Participant obtains the legally binding right to the compensation or Award, provided that the election is filed at least 12 months in advance of the earliest date at which the forfeiture condition could lapse.
2.A Participant’s election to defer must include the time and form of payment, within the parameters made available by the Committee, and such timing of payment must comply with the permitted payment events under Code Section 409A.
C.Performance-Based Other Stock Awards
The payment under any Other Stock Award that the Committee or Board determines shall be a performance-based Award (hereinafter “Target Award”) shall be contingent upon the attainment of one or more pre-established performance goals established by the Committee in writing while the attainment of any performance-based goal under the granted Target Award remains substantially uncertain. Such performance goals may be based upon one or more performance-based criteria, including but not limited to: (i) earnings per share, net earnings per share or growth in such measures, (ii) revenue, net revenue, income, net income or growth in revenue or income (all either before or after taxes), (iii) return measures (including, but not limited to, return on assets, capital, investment, equity, revenue or sales), (iv) cash flow return on investments which equals net cash flows divided by owners’ equity, (v) controllable earnings (a division’s operating profit, excluding the amortization of goodwill and intangible assets, less a charge for the interest cost for the average working capital investment by the division), (vi) operating earnings or net operating earnings, (vii) costs or cost control measures, (viii) share price (including, but not limited to, growth measures), (ix) total shareholder return (stock price appreciation plus dividends), (x) economic value added, (xi) EBITDA, (xii) operating margin or growth in operating margin, (xiii) market share or growth in market share, (xiv) cash flow, cash flow from operations, free cash flow, or growth in such measures, (xv) sales revenue or volume or growth in such measures, (xvi) gross margin or growth in gross margin, (xvii) productivity, (xviii) brand contribution, (xix) product quality, (xx) corporate value measures, (xxi) goals related to acquisitions, divestitures or customer satisfaction, (xxii) diversity, (xxiii) index comparisons, (xxiv) debt-to-equity or debt-to-stockholders’ equity ratio, (xxv) working capital, (xxvi) risk mitigation, (xxvii) sustainability and environmental impact, (xxviii) employee retention, (xxix) expense or expense control measures (including, but not limited to average unit cost, selling, general, and administrative expenses), and (xxx) any other objective or subjective criterion or criteria that the Committee or Board may select from time to time.  Without limiting the Committee’s or Board’s authority to select any performance criteria as it deems appropriate, performance may be measured on an individual, corporate group, business unit, subsidiary, division, department, region, function, market, or consolidated basis and may be measured absolutely, relatively to the Company’s peers, or with a performance goal established by combining two or more of the preceding performance criteria (for example, free cash flow as a percentage of sales). In establishing the performance goals, the Committee or Board may provide that the performance goals will be adjusted to account for the effects of acquisitions, divestitures, extraordinary dividends, stock split-ups, stock dividends or distributions, issuances of any targeted stock, recapitalizations, warrants or rights issuances or combinations, exchanges or reclassifications with respect to any outstanding class or series of Common Stock, or a corporate transaction, such as any merger of the Company with another corporation, any consolidation of the Company and another corporation into another corporation, any separation of the Company or its business units (including a spinoff or other distribution of stock or property by the Company), any reorganization of the Company (whether or not such reorganization comes within the definition of such term in Code Section 368) or any partial or complete liquidation by the Company, or sale of all or substantially all of the assets of the Company, or exclusion of non-consolidated subsidiaries, or measures intended to account for variations in the exchange rate between foreign currencies and budgeted exchange rates, or other extraordinary items, or any other event or circumstance the Committee or Board deems appropriate. Unless otherwise specifically provided by the Committee or Board when authorizing an Award, all performance-based criteria, including any adjustments described in the preceding sentence, shall be determined by applying U.S. generally accepted accounting principles, as reflected in the Company’s audited financial statements.
The Committee or Board, in its discretion, may adjust an earned Target Award. Before payments are made under a Target Award, the Committee or Board shall certify in writing that the performance goals justifying the payment under the Target Award have been met. In no event will dividends or dividend equivalents be paid with respect to any Award which does not vest and/or meet its performance goals. Therefore, dividends and dividend equivalents shall be 

paid only on the vested portion of Target Awards for which the applicable performance goals are achieved.
D.Stock Bonus Awards
Subject to the minimum vesting requirements set forth in Section I.E.5, the Committee or Board may issue unrestricted Stock, or other Awards denominated in Stock, including and without limitation, fully-vested deferred stock units, under the Plan to Participants, alone or in tandem with other Awards, in such amounts and subject to such terms and conditions as the Committee or Board shall from time to time in its sole discretion determine. A Stock Bonus Award under the Plan shall be granted as, or in payment of, a bonus, or to provide incentives or recognize special achievements or contributions.
		
	V.
	Cash Bonus Awards

The Committee shall have the authority to make an Award of a cash bonus to any Participant.  Any such Award may be subject to a performance period, performance goals or such other terms and conditions as the Committee may designate in the applicable Award Agreement.
		
	VI.
	Director Compensation Limitation

Notwithstanding any provision in this Plan to the contrary, the maximum number of shares of Common Stock subject to Awards granted during a single calendar year to any non-employee Director, taken together with any cash fees paid during the calendar year to the non-employee Director in respect of such Director’s service as a member of the Board during such year (including service as a member or chair of any committees of the Board), shall not have an aggregate Fair Market Value determined on the date on which the applicable Award is granted in excess of $1,000,000.  
		
	VII.
	Forfeiture of Awards

A.Forfeiture Events
Unless the Committee, or in the case of a Director, the Board, shall have determined otherwise in an Award Agreement, the recipient of any Award pursuant to the Plan shall forfeit the Award, to the extent not then payable or exercisable, upon the occurrence of any of the following events, subject to compliance with any applicable local laws:
1.The recipient is Terminated for Cause.
2.The recipient voluntarily terminates his or her employment, except as otherwise provided in the Award Agreement or the Participant’s Termination for Good Reason, as described in Section IX.G.
3.The recipient engages in Competition with the Company or any Affiliate.
4.The recipient engages in any activity or conduct contrary to the best interests of the Company or any Affiliate, including, but not limited to, conduct that breaches the recipient’s duty of loyalty to the Company or an Affiliate or that is materially injurious to the Company or an Affiliate, monetarily or otherwise. Such activity or conduct may include, without limitation: (i) disclosing or misusing any confidential information pertaining to the Company or an Affiliate, (ii) any attempt, directly or indirectly, to induce any Employee of the Company or any Affiliate to be employed or perform services elsewhere, or (iii) any direct or indirect attempt to solicit, or assist another employer in soliciting, the trade of any customer or supplier or prospective customer of the Company or any Affiliate. Notwithstanding the foregoing, nothing herein prohibits a recipient from (A) reporting possible violations of federal law or regulations, including any possible securities laws violations, to any governmental agency or entity, (B) making any other disclosures that are protected under the whistleblower provisions of federal law or regulations, or (C) otherwise fully participating in any federal whistleblower programs, including but not limited to any such programs managed by the U.S. Securities and Exchange.
B.Additional/Waiver of Conditions
The Committee or the Board, as the case may be, may include in any Award Agreement any additional or different conditions of forfeiture it may deem appropriate, and may waive any condition of forfeiture stated above or in the Award Agreement.
C.Effect of Forfeiture
In the event of forfeiture, the recipient shall lose all rights in and to portions of the Award which are not vested or which are not exercisable. Except in the case of Restricted Stock Awards as to which restrictions have not lapsed and subject to Section IX.Q, this provision, however, shall not be invoked to require any recipient to transfer to the Company any Common Stock or cash already received under an Award.
D.Committee/Board Discretion

Such determinations as may be necessary for application of this Section, including any grant of authority to others to make determinations under this Section, shall be at the sole discretion of the Committee, or in the case of Awards granted to Directors, of the Board, and such determinations shall be conclusive and binding.
		
	VIII.
	Beneficiary Designation; Death of Awardee

A.Beneficiary Designation
If permitted by the Committee, an Award recipient may file with the Committee a written designation of a beneficiary or beneficiaries (subject to such limitations as to the classes and number of beneficiaries and contingent beneficiaries as the Committee may from time to time prescribe) to exercise, in the event of the death of the recipient, an Option or Stock Appreciation Right, or to receive, in such event, any other Awards. The Committee reserves the right to review and approve beneficiary designations and/or require that a particular form be used to be effective with respect to an Award. A recipient may from time to time revoke or change any such designation of beneficiary and any designation of beneficiary under the Plan shall be controlling over any other disposition, testamentary or otherwise. However, if the Committee shall be in doubt as to the right of any such beneficiary to exercise any Option or Stock Appreciation Right, or to receive any other Award, the Committee may determine to recognize only an exercise by, or right to receive of, the legal representative of the recipient, in which case the Company, the Committee and the members thereof shall not be under any further liability to anyone.
B.Recipient’s Death
Upon the death of an Award recipient, the following rules shall apply:
1.An Option, to the extent exercisable on the date of the recipient’s death, may be exercised at any time within three years after the recipient’s death, but not after the expiration of the term of the Option. The Option may be exercised by the recipient’s designated beneficiary (to the extent there is a beneficiary designation on file which the Committee has allowed) or personal representative or the person or persons entitled thereto by will or in accordance with the laws of descent and distribution, or by the transferee of the Option in accordance with the provisions of Section IX.A.
2.In the case of any Stock Appreciation Right or any other Award, any shares of Common Stock or cash payable shall be determined as of the date of the recipient’s death, in accordance with the terms of the Award Agreement, and the Company shall issue such shares of Common Stock or pay such cash to the recipient’s designated beneficiary or personal representative or the person or persons entitled thereto by will or in accordance with the laws of descent and distribution.
		
	IX.
	Other Governing Provisions

A.Transferability
Except as otherwise provided herein, no Award shall be transferable other than by beneficiary designation, will or the laws of descent and distribution, and any right granted under an Award may be exercised during the lifetime of the holder thereof only by the Award recipient or by his/her guardian or legal representative; provided, however, that an Award recipient may be permitted, in the sole discretion of the Committee, to transfer to a member of such recipient’s immediate family, family trust or family partnership as defined by the Committee or its delegee, an Option, other than an Incentive Stock Option, subject to such terms and conditions as the Committee, in their sole discretion, shall determine.
B.Rights as a Shareholder
A recipient of an Award shall have no rights as a shareholder, with respect to any Awards or shares of Common Stock which may be issued in connection with an Award, until the issuance of a Common Stock certificate for such shares, and no adjustment other than as stated herein shall be made for dividends or other rights for which the record date is prior to the issuance of such Common Stock certificate. In addition, with respect to Restricted Stock Awards, recipients shall have only such rights as a shareholder as may be set forth in the terms of the Award Agreement. Notwithstanding the previous language in this Section IX.B, in no event will dividends or dividend equivalents be paid with respect to any Award which does not vest and/or meet its performance goals. Therefore, dividends and dividend equivalents shall be paid only on the vested portion of Awards on or after the date such Awards, or portion thereof, vest.
C.General Conditions of Awards
No Employee, Director or other person shall have any rights with respect to the Plan, the shares of Common Stock reserved or in any Award, contingent or otherwise, until an Award Agreement shall have been delivered to the recipient and all of the terms, conditions and provisions of the Plan applicable to such recipient shall have been met.

D.Reservation of Rights of Company
Neither the establishment of the Plan nor the granting of an Award shall confer upon any Employee any right to continue in the employ of the Company or any Affiliate or interfere in any way with the right of the Company or any Affiliate to terminate such employment at any time, provided in compliance with applicable local laws and individual employment contracts (if any). No Award shall be deemed to be salary or compensation for the purpose of computing benefits under any employee benefit, pension or retirement plans of the Company or any Affiliate, unless the Committee shall determine otherwise, applicable local law provides otherwise or the terms of such plan specifically include such compensation.
E.Acceleration
The Committee, or, with respect to any Awards granted to Directors, the Board, may, in its sole discretion, accelerate the vesting or date of exercise of any Awards except to the extent such acceleration will result in adverse tax consequences under Code Section 409A.
F.Effect of Certain Changes
In the event of any extraordinary dividend, stock split-up, stock dividend, spin-off, issuance of targeted stock, recapitalization, warrant or rights issuance, or combination, exchange or reclassification with respect to the Common Stock or any other class or series of common stock of the Company, or consolidation, merger or sale of all, or substantially all, of the assets of the Company, the Committee shall cause equitable adjustments to be made to the shares reserved under Section I.D. of the Plan and the limits on Awards set forth in Section I.E.4. of the Plan, and the Committee or Board shall cause such adjustments to be made to the terms of outstanding Awards to reflect such event and preserve the value of such Awards. Any such adjustments to a Non-Qualified Stock Option or a Stock Appreciation Right shall comply with the requirements of the regulations under Code Section 409A. If any such adjustment would result in a fractional share of Common Stock being issued or awarded under this Plan, such fractional share shall be disregarded.
G.Effect of Change of Control
1.If (i) within 12 months following a Change of Control or (ii) in contemplation of a Change of Control, a Participant’s employment or service with the Company or any Affiliate is terminated by the Company or an Affiliate without Cause or by the Participant for Good Reason, all Awards held by such Participant, irrespective of the vesting schedule, shall become fully vested and immediately exercisable and, if applicable, the restricted period shall end at the time of such termination.
2.In the event of a Change of Control, all incomplete performance periods in respect of such Award in effect on the date the Change of Control occurs shall end on the date of such change, and the Committee shall (A) determine the extent to which performance goals with respect to each such Award have been met based upon such audited or unaudited financial information then available as it deems relevant, (B) cause to be paid to the applicable Participant partial or full Awards with respect to performance goals for each such Award based upon the Committee’s determination of the degree of attainment of performance goals, and (C) cause the Award, if previously deferred, to be settled in full as soon as possible.
3.In the event of a Change of Control, the Committee may in its discretion and upon at least 10 days’ advance notice to the affected persons, cancel any outstanding vested Awards and pay to the holders thereof, in cash or stock, or any combination thereof, the value of such vested Awards based upon the price per share of Common Stock received or to be received by other stockholders of the Company in the event.
4.In the event of a Change of Control, the surviving, continuing, successor, or purchasing corporation or other business entity or parent thereof, as the case may be (the “Acquiror”), may, without the consent of any Participant, assume or continue the Company’s rights and obligations under each or any Award or portion thereof outstanding immediately prior to the Change of Control or substitute for each or any such outstanding Award or portion thereof a substantially equivalent award with respect to the Acquiror’s stock, as applicable.  For purposes of this Section, if so determined by the Committee in its discretion, an Award denominated in shares of Common Stock shall be deemed assumed if, following the Change of Control, the Award confers the right to receive, subject to the terms and conditions of the Plan and the applicable Award Agreement, for each share of Common Stock subject to the Award immediately prior to the Change of Control, the consideration (whether stock, cash, other securities or property or a combination thereof) to which a holder of a share of Common Stock on the effective date of the Change of Control was entitled (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); provided, however, that if such consideration is not solely common stock of the Acquiror, the Committee may, with the consent of the Acquiror, provide for the consideration to be received upon the exercise or settlement of the Award, for each share of Common Stock subject to the Award, to consist solely of common 

stock of the Acquiror equal in Fair Market Value to the per share consideration received by holders of Common Stock pursuant to the Change of Control. Any Award or portion thereof which is not assumed, continued or substituted as provided herein by the Acquiror in connection with the Change of Control, irrespective of the vesting schedule, shall become fully vested and immediately exercisable and, if applicable, the restricted period shall end as of the time of consummation of the Change of Control.
5.    In the event any payment(s) or the value of any benefit(s) received or to be received by a Participant in connection with or contingent upon a Change of Control (whether received or to be received pursuant to the terms of the Plan or any Award Agreement or of any other plan, arrangement or agreement of the Company, its successors, any person whose actions result in a Change of Control, or any person affiliated with any of them (or which, as a result of the completion of the transaction(s) causing a Change of Control, will become affiliated with any of them) (collectively, the “Payments”)), are determined, under the provisions of  this subsection to be subject to an excise tax imposed by Code Section 4999 (any such excise tax, together with any interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), as determined in this subsection, then the Company shall reduce the aggregate amount of the Payments payable to the Participant such that no Excise Tax shall be payable by the Participant and the Payments shall not cease to be deductible by the Company by reason of Code Section 280G (or any successor provision thereto). Notwithstanding the foregoing, the Company shall not reduce the aggregate amount of the Payments payable to the Participant pursuant to the foregoing sentence if the After-Tax Amount (as defined below) of the unreduced Payments is greater than the After-Tax Amount that would have been paid had the Payments been reduced pursuant to the foregoing sentence. For purposes of this Agreement “After-Tax Amount” means the portion of a specified amount that would remain after payment of all Excise Taxes (if any), income taxes, payroll and withholding taxes, and other applicable taxes paid or payable by Participant in respect of such specified amount.  
If there is a determination that the Payments payable to Participant must be reduced pursuant to the immediately preceding paragraph, the Company shall promptly give Participant notice to that effect and a copy of the detailed calculation thereof and of the amount to be reduced.  The Participant may then elect which and how much the Payments shall be eliminated or reduced as long as (i) the first such Payments to be reduced are not considered “deferred compensation” within the meaning of Code Section 409A (if any), (ii) if Payments described in clause (i) are exhausted and additional reductions are necessary, any cash Payments are reduced next, and (iii) after such election the aggregate present value of the Payments equals the largest amount that would both (A) not cause any Excise Tax to be payable by the Participant, and (B) not cause any Payments to become nondeductible by the Company by reason of Code Section 280G (or any successor provision thereto).  The Participant shall advice the Company in writing of the Participant’s election within ten (10) days of the Participant’s receipt of such notice from the Company.  Notwithstanding the foregoing, if no election is made by the Participant within the ten-day period, the Company may elect which and how much of the Payments shall be eliminated or reduced as long (1) the first such payments to be reduced are not considered “deferred compensation” within the meaning of Code Section 409A (if any), (2) if Payments described in clause (1) are exhausted and additional reductions are necessary, any cash Payments are reduced next, and (3) after such election the aggregate present value of the Payments equals the largest amount that would both (A) not cause any Excise Tax to be payable by the Participant, and (B) not cause any Payments to become nondeductible by the Company by reason of Code Section 280G (or any successor provision thereto).  For purposes of this paragraph, present value shall be determined in accordance with Code Section 280G(d)(4).
All determinations required to be made under this subsection, including whether the aggregate amount of Payments shall be reduced, and the assumptions to be utilized in arriving at such determinations, shall be made by the certified public accountants regularly employed by the Company immediately prior to the Change of Control transaction (“Accounting Firm”). Any determination by the Accounting Firm shall be binding upon the Company and Participant and shall be made within sixty (60) days immediately following the event constituting the Change of Control transaction. As promptly as practicable following such determination, the Company shall pay to or distribute for the benefit of the Participant such Payments as are then due to the Participant under this Plan and applicable Award Agreement.
At the time of the initial determination by the Accounting Firm, it is possible that amounts will have been paid or distributed by the Company to or for the benefit of the Participant pursuant to this Plan which should not have been so paid or distributed (“Overpayment”) or that additional amounts which will have not been paid or distributed by the Company to or for the benefit of the Participant pursuant to this Plan could have been so paid or distributed (“Underpayment”), in each case, consistent with the calculation hereunder. In the event that the Accounting Firm, based either upon the assertion of a deficiency by the Internal Revenue Service against the Company or the Participant which the Accounting Firm believes has a high probability of success or controlling precedent or other substantial authority, determines that an Overpayment has been made, any such Overpayment paid or distributed by the Company to or for the benefit of the Participant shall be treated for all purposes as a loan ab initio to the Participant which the Participant shall repay to the Company together with interest at the applicable Federal rate provided for in Code Section 7872(f)(2); provided, however, that no such loan shall be deemed to have been made and no amount shall be payable by the 

Participant to the Company if and to the extent (i) such deemed loan and payment would not either reduce the amount on which the Participant is subject to tax under Code Section 1 and Code Section 4999 or generate a refund of such taxes or (ii) the Participant is subject to the prohibition on personal loans under Section 402 of the Sarbanes-Oxley Act of 2002. In the event that the Accounting Firm, based upon controlling precedent or other substantial authority, determines that an Underpayment has occurred, any such Underpayment shall be promptly paid by the Company to or for the benefit of the Participant together with interest at the applicable Federal rate provided for in Code Section 7872(f)(2).
6.    The obligations of the Company under the Plan shall be binding upon any successor corporation or organization resulting from the merger, consolidation or other reorganization of the Company, or upon any successor corporation or organization succeeding to substantially all of the assets and business of the Company. The Company agrees that it will make appropriate provisions for the preservation of Participants’ rights under the Plan in any agreement or plan which it may enter into or adopt to effect any such merger, consolidation, reorganization or transfer of assets.
H.Repricing
Without the prior approval of the Company’s shareholders, the Company will not affect a “repricing” (as defined below) of any Options, Stock Appreciation Right, or Other Stock Awards granted under the terms of the Plan. For purposes of the immediately preceding sentence, a “repricing” shall be deemed to mean any of the following actions or any other action having the same effect: (i) the lowering of the purchase price of an Option, Stock Appreciation Right, or Other Stock Award after it is granted, (ii) the cancelling of an Option, Stock Appreciation Right, or Other Stock Award in exchange for another Option, Stock Appreciation Right, or Other Stock Award at a time when the purchase price of the cancelled Option, Stock Appreciation Right, or Other Stock Award exceeds the Fair Market Value of the underlying Common Stock (unless the cancellation and exchange occurs in connection with a merger, acquisition, spin-off or other similar corporate transaction), (iii) the purchase of an Option, Stock Appreciation Right, or Other Stock Award for cash or other consideration at a time when the purchase price of the purchased Option, Stock Appreciation Right, or Other Stock Award exceeds the Fair Market Value of the underlying Common Stock (unless the purchase occurs in connection with a merger, acquisition, spin-off or other similar corporate action), or (iv) an action that is treated as a repricing under generally accepted accounting principles.
I.Withholding of Taxes
The Company and its Affiliates shall satisfy any federal, state, foreign or local income tax, social insurance contributions, payment on account or other withholding obligations (“Tax Withholdings”) resulting from recipients’ participation in the Plan by any of the following means as determined by the Committee, in its discretion: (i) by reducing the number of shares of Common Stock otherwise payable under such Awards to the extent the Awards are settled in shares, (ii) by withholding from recipient’s salary, compensation or other payments made to him or her, (iii) by requiring recipient to make a cash payment to the Company or one of its Affiliates in advance of receiving shares or cash pursuant to the Award, (iv) withholding from the cash settlement to the extent the Award is settled in cash, (v) selling shares of Common Stock on the market either through a cashless exercise transaction or other sale on the market, or (vi) any other means set forth in the Award Agreement.
In the event that the number of shares of Common Stock otherwise payable are reduced in satisfaction of tax obligations, such number of shares shall be calculated by reference to the Fair Market Value of the Common Stock on the date that such taxes are determined.
With respect to Corporate Officers, Directors or other recipients subject to Section 16(b) of the Exchange Act, the Committee, or, with respect to Awards granted to Directors, the Board, may impose such other conditions on the recipient’s election as it deems necessary or appropriate in order to exempt such withholding from the penalties set forth in said Section.
J.No Warranty of Tax Effect
No opinion is expressed nor warranties made as to the tax effects under federal, foreign, state or local laws or regulations of any Award granted under the Plan. Regardless of whether Awards are intended to qualify for favorable tax treatment, the Company does not warrant or represent that such treatment will be available.
K.Amendment and Termination of Plan
Except as otherwise provided in this Section IX.K, the Board may, from time to time, amend, suspend or terminate the Plan in whole or in part, and if terminated, may reinstate any or all of the provisions of the Plan, except that (i) no amendment, suspension or termination may apply to the terms of any outstanding Award (contingent or otherwise) granted prior to the effective date of such amendment, suspension or termination, in a manner which would reasonably be considered to be adverse to the recipient, without the recipient’s consent, (ii) except as provided in Section IX.F., no amendment may be made to increase the number of shares of Common Stock reserved under Section I.D. of the Plan, 

(iii) except as provided in Section IX.F., no amendment may be made to increase the limitations set forth in Section I.E.4. of the Plan, and (iv) no amendment that would require approval of the Company’s stockholders under any applicable law, regulation or rule, including the rules of any stock exchange or quotation system upon which the Common Stock may then be listed or quoted shall be made without obtaining such stockholder approval.
To the extent a portion of the Plan is subject to Code Section 409A, the Board may terminate the Plan, and distribute all vested accrued benefits, without consent from affected Award recipients, subject to the restrictions set forth in Treasury Regulation §1.409A-3(j)(4). A termination of any portion of the Plan that is subject to Code Section 409A must comply with the provisions of Code Section 409A and the regulations and guidance promulgated thereunder, including, but not limited to, restrictions on the timing of final distributions and the adoption of future deferred compensation arrangements.
L.Construction of Plan
The place of administration of the Plan shall be in the State of Missouri and the validity, construction, interpretation, administration and effect of the Plan and of its rules and regulations, and rights relating to the Plan, shall be determined solely in accordance with the laws of the State of Missouri, without giving regard to the conflict of laws provisions thereof.
M.Choice of Law/Venue
The validity, construction and effect of the Plan and any actions taken or relating to the Plan shall be determined in accordance with the laws of the State of Missouri without giving effect to its choice of law provisions. Any legal action against the Plan, the Company, an Affiliate, or the Committee may only be brought in the Circuit Court in St. Louis County and/or the United States District Court in St. Louis, Missouri.
N.Unfunded Nature of Plan
The Plan, insofar as it provides for cash payments, shall be unfunded, and the Company shall not be required to segregate any assets which may at any time be awarded under the Plan. Any liability of the Company to any person with respect to any Award under the Plan shall be based solely upon any contractual obligations which may be created by the terms of any Award Agreement entered into pursuant to the Plan. No such obligation of the Company shall be deemed to be secured by any pledge of, or other encumbrance on, any property of the Company.
O.Successors
All obligations of the Company under the Plan, with respect to any Awards granted hereunder, shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation or otherwise, of all or substantially all of the business and/or assets of the Company.
P.Code Section 409A
It is intended that any amounts payable under this Plan shall either be exempt from or comply with Code Section 409A (including the Treasury regulations and other published guidance relating thereto) so as not to subject a Participant to payment of any interest or additional tax imposed under Code Section 409A. To the extent that any amount payable under this Agreement would trigger the additional tax, penalty or interest imposed by Code Section 409A, this Plan shall be modified to avoid such additional tax, penalty or interest yet preserve (to the nearest extent reasonably possible) the intended benefit payable to the Participant. In no event shall the Company, any member of the Board, or any employee, agent or other service provider have any liability to any Participant for any tax, fine or penalty associated with any failure to comply with the requirements of Code Section 409A.
To the extent a payment or benefit is nonqualified deferred compensation subject to Code Section 409A, a termination of employment shall not be deemed to have occurred for purposes of any provision of this Plan or any Award Agreement providing for the payment of any amounts upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Code Section 409A and, for purposes of any such provision of this Plan and any Award Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service.” If a Participant is deemed on the date of a separation from service (within the meaning of Code Section 409A) to be a “specified employee” (within the meaning of that term under Section 409A(a)(2)(B) of the Code and determined using any identification methodology and procedure selected by the Company from time to time, or, if none, the default methodology and procedure specified under Code Section 409A), then with regard to any payment or the provision of any benefit that is “nonqualified deferred compensation” within the meaning of Code Section 409A and which is paid as a result of the Participant’s “separation from service,” such payment or benefit shall not be made or provided prior to the date which is the earlier of (i) the expiration of the six-month period measured from the date of such “separation from service” of the Participant, and (ii) the date of the Participant’s death (the “Delay 

Period”). Upon the expiration of the Delay Period, all payments and benefits delayed pursuant to this clause (whether they would have otherwise been payable in a single sum or in installments in the absence of such delay) shall be paid or reimbursed to the Participant in a lump sum, and any remaining payments and benefits due under this Agreement shall be paid or provided in accordance with the normal payment dates specified for them herein.
For purposes of Code Section 409A, the Participant’s right to receive any installment payments pursuant to this Plan or any Award Agreement shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under the Plan or any Award Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within thirty days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.
Q.Clawback and Non-Competition
Notwithstanding any other provisions of this Plan, any Award will be subject to such deductions and clawback as may be required to be made pursuant to any law, government regulation or stock exchange listing requirement, or any policy adopted by the Company. In addition and notwithstanding any other provisions of this Plan, any Award shall be subject to such non-competition provisions under the terms of the Award Agreement or any other agreement or policy adopted by the Company, including, without limitation, any such terms providing for immediate termination and forfeiture of an Award if and when the recipient becomes an employee, agent or principal of an entity engaging in Competition with the Company.
R.Hedging and Pledging
Notwithstanding any other provisions of this Plan, an Award will be subject to any Company policy that the Company may adopt and/or amend from time to time regarding the hedging or pledging (or any similar transaction) of Company securities.
S.Sub-Plans
The Committee may from time to time establish sub-plans under the Plan for purposes of satisfying blue sky, securities, tax or other laws of various jurisdictions in which the Company intends to grant Awards. Any sub-plans shall contain such limitations and other terms and conditions as the Committee determines are necessary or desirable. All sub-plans shall be deemed a part of the Plan, but each sub-plan shall apply only to the Participants in the jurisdiction for which the sub-plan was designed.
T.Non-Uniform Treatment
The Committee’s determinations under the Plan need not be uniform and may be made by it selectively among persons who are eligible to receive, or actually receive, Awards. Without limiting the generality of the foregoing, the Committee shall be entitled to make non-uniform and selective determinations, amendments and adjustments and to enter into non-uniform and selective Award Agreements.
U.Employees Employed in Foreign Jurisdictions
In order to enable participants who are foreign nationals or employed outside the United States, or both, to receive Awards under the Plan, the Committee may adopt such amendments, administrative policies, sub-plans and the like as are necessary or advisable, in the opinion of the Committee, to effectuate the purposes of the Plan and achieve favorable tax treatment or facilitate compliance under the laws of the applicable foreign jurisdiction without otherwise violating the terms of the Plan. Therefore, to the extent the Committee determines that the restrictions imposed by this Plan preclude the achievement of material purposes of the Awards in jurisdictions outside of the United States, the Committee has the authority and discretion to modify those restrictions as the Committee determines to be necessary or appropriate to conform to applicable requirements or practices of jurisdictions outside of the United States.
V.Substitute Awards
Awards may be granted under this Plan from time to time in substitution for Awards held by employees of other corporations who are about to become Employees, or whose employer is about to become an Affiliate, as the result of a merger or consolidation of the Company or an Affiliate with another corporation, the acquisition by the Company or an Affiliate of all or substantially all the assets of another corporation or the acquisition by the Company or an Affiliate of at least 50% of the issued and outstanding stock of another corporation. The terms and conditions of the substitute Awards so granted may vary from the terms and conditions set forth in this Plan to such extent as the Board or Committee, as applicable, at the time of the grant may deem appropriate to conform, in whole or in part, to the provisions of the Awards in substitution for which they are granted, but with respect to Awards which are Incentive Stock Options, no such variation shall be permitted which affects the status of any such substitute option as an Incentive Stock Option. 

Notwithstanding the foregoing, in no event shall such substitution occur to the extent such substitution would cause a violation of Code Section 409A.
W.Whistleblower Provisions
Nothing contained herein prohibits the Participant from: (i) reporting possible violations of federal law or regulations, including any possible securities laws violations, to any governmental agency or entity, (ii) making any other disclosures that are protected under the whistleblower provisions of federal law or regulations, or (iii) otherwise fully participating in any federal whistleblower programs, including but not limited to any such programs managed by the U.S. Securities and Exchange.
		
	X.
	Effective Date and Term 

Subject to the approval of the Company shareholders, this Plan shall be effective November 11, 2019. Upon termination, any balances in the reserve established under Section I.D. shall be cancelled, and no Awards shall be granted under the Plan thereafter. The Plan shall continue in effect, however, insofar as is necessary, to complete all of the Company’s obligations under outstanding Awards or to conclude the administration of the Plan.
The Plan shall remain in effect until the earliest of (i) the date no additional shares of Common Stock are available for issuance under the Plan, (ii) the date the Plan has been terminated in accordance with Article IX.K, or (iii) the close of business on November 10, 2029, at which time it shall terminate.  Upon termination, any balances in the reserve established under Section I.D. shall be cancelled, and no Awards shall be granted under the Plan thereafter. The Plan shall continue in effect, however, insofar as is necessary, to complete all of the Company’s obligations under outstanding Awards or to conclude the administration of the Plan.

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