Document:

Exhibit 10.1

 

AMENDMENT TO PLAN SUPPORT AGREEMENT

 

THIS AMENDMENT dated as of August 5, 2016 (this “Amendment”) among (i) Paragon Offshore plc, (ii) Paragon International Finance Company, Paragon Offshore Finance Company, Paragon Offshore Leasing (Switzerland) GmbH, Paragon Offshore Contracting GmbH, Paragon Holding NCS 2 S.à r.l., Paragon Offshore (Luxembourg) S.à r.l., Paragon Offshore Leasing (Luxembourg) S.à r.l., Paragon Offshore International Ltd., Paragon Duchess Ltd., Paragon (Middle East) Limited, Paragon Asset Company Ltd., Paragon Asset (ME) Ltd., Paragon Holding SCS 1 Ltd., Paragon Holding SCS 2 Ltd., Paragon FDR Holdings Ltd., Paragon Offshore (North Sea) Ltd., Paragon Asset (UK) Ltd., Paragon Offshore Holdings US Inc., Paragon Drilling Services 7 LLC, Paragon Offshore Drilling LLC, Paragon Leonard Jones LLC, Paragon Offshore do Brasil Ltda., Paragon Offshore (Nederland) B.V., PGN Offshore Drilling (Malaysia) Sdn. Bhd. and Paragon Offshore (Labuan) Pte. Ltd. and (iii) the undersigned Consenting Creditors. Capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the PSA (as defined below).

 

WHEREAS, the Parties entered into a certain Plan Support Agreement dated as of February 12, 2016 (as amended, the “PSA”).

 

WHEREAS, the Parties wish to amend and restate certain provisions of the PSA.

 

AND WHEREAS, the Parties wish to take such actions necessary to give effect to such amendment.

 

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

 

Section 1.              Amendment.

 

1.1          Subsections 6(a)(iv) and (v) of the PSA are hereby amended and restated in their entirety as follows:

 

“(iv)        At 11:59 p.m. prevailing Eastern Time on October 31, 2016 (the “Confirmation Date”), if the Bankruptcy Court shall not have entered an order in form and substance reasonably satisfactory to the Paragon Parties and the Requisite Creditors confirming the Paragon Plan.

 

(v)           At 11:59 p.m. prevailing Eastern Time on December 15, 2016 (the “Outside Date”), if the Effective Date shall not have occurred.”

 

1.2          Section 6(a) of the PSA is hereby amended to add the following as a new Subsection 6(a)(xviii):

 

 

“(xviii)    At 11:59 p.m. prevailing Eastern Time on August 5, 2016, if the Paragon Parties shall not have filed a motion with the Bankruptcy Court seeking approval and assumption of this Agreement as amended by that Amendment dated as of August 5, 2016 (the “PSA Assumption Motion”).”

 

1.3          Section 6(a) of the PSA is hereby amended to add the following as a new Subsection 6(a)(xix):

 

“(xix)      At 11:59 p.m. prevailing Eastern Time on September 9, 2016, if the Paragon Parties failed to obtain entry of order approving the PSA Assumption Motion, provided, however, this Creditor Termination Event shall only be for the benefit of the Consenting Noteholders.”

 

1.4          Section 25 of the PSA is hereby amended to add the following at the end of the section:

 

“The Parties hereby agree that any monetary damage claim for breach of this Agreement by the Paragon Parties is limited to the reasonable documented prepetition and postpetition costs and expenses contemplated by this Section 25.”

 

Section 2.              Consent. The Paragon Parties and the undersigned Consenting Creditors constituting the Requisite Creditors hereby agree to the amendments to the Paragon Plan as set forth in the Modified Second Amended Joint Chapter 11 Plan of Paragon Offshore plc and Its Affiliated Debtors attached hereto as Exhibit A, including, without limitation, the amendments to the Secured Revolving Credit Agreement set forth in the term sheet attached to the Modified Second Amended Joint Chapter 11 Plan of Paragon Offshore plc and Its Affiliated Debtors.

 

Section 3.              Miscellaneous.

 

3.1          Except as specifically set forth herein, the terms of the PSA shall remain in full force and effect and are hereby ratified and confirmed.

 

3.2          This Amendment may be executed in several counterparts, each of which shall be deemed to be an original, and all of which together shall be deemed to be one and the same agreement. Execution copies of this Amendment delivered by facsimile or PDF shall be deemed to be an original for the purposes of this paragraph.

 

[Signature Page Follows]

 

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IN WITNESS HEREOF, the Parties have caused this Amendment to be duly executed and delivered as of the day and year first written above.

 

 

	
 
    	
PARAGON OFFSHORE   PLC
    
	
 
    	
PARAGON   INTERNATIONAL FINANCE COMPANY
    
	
 
    	
PARAGON OFFSHORE   FINANCE COMPANY
    
	
 
    	
PARAGON OFFSHORE   LEASING (SWITZERLAND) GMBH
    
	
 
    	
PARAGON OFFSHORE   CONTRACTING GMBH
    
	
 
    	
PARAGON HOLDING   NCS 2 S.Á R.L.
    
	
 
    	
PARAGON OFFSHORE   (LUXEMBOURG) S.Á R.L.
    
	
 
    	
PARAGON OFFSHORE   LEASING (LUXEMBOURG) S.Á R.L.
    
	
 
    	
PARAGON OFFSHORE   INTERNATIONAL LTD.
    
	
 
    	
PARAGON DUCHESS   LTD.
    
	
 
    	
PARAGON (MIDDLE   EAST) LIMITED
    
	
 
    	
PARAGON ASSET   COMPANY LTD.
    
	
 
    	
PARAGON ASSET   (ME) LTD.
    
	
 
    	
PARAGON HOLDING   SCS 2 LTD.
    
	
 
    	
PARAGON FDR   HOLDINGS LTD.
    
	
 
    	
PARAGON HOLDING   SCS 1 LTD.
    
	
 
    	
PARAGON OFFSHORE   (NORTH SEA) LTD.
    
	
 
    	
PARAGON ASSET   (UK) LTD.
    
	
 
    	
PARAGON OFFSHORE   HOLDINGS US INC.
    
	
 
    	
PARAGON DRILLING   SERVICES 7 LLC
    
	
 
    	
PARAGON OFFSHORE   DRILLING LLC
    
	
 
    	
PARAGON LEONARD   JONES LLC
    
	
 
    	
PARAGON OFFSHORE   DO BRASIL LTDA.
    
	
 
    	
PARAGON OFFSHORE   (NEDERLAND) B.V.
    
	
 
    	
PGN OFFSHORE   DRILLING (MALAYSIA) SDN. BHD.
    
	
 
    	
PARAGON OFFSHORE   (LABUAN) PTE. LTD.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Randall D. Stilley
    
	
 
    	
 
    	
Name: Randall D.   Stilley
    
	
 
    	
 
    	
Title: Chief   Executive Officer and President
    

 

[Signature Page to Amendment to Plan Support Agreement]

 

 

	
CONSENTING   CREDITORS
    	
 
    
	
 
    	
 
    
	
[CONSENTING CREDITOR]
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
 
    
	
Revolving Credit   Exposure under Secured Revolving Credit Agreement: $
    
	
 
    
	
Principal Amount of the   6.75% Senior Notes: $
    
	
 
    
	
Principal Amount of the   7.25% Senior Notes: $
    
	
 
    
	
Notice Address:
    
	
 
    
	
 
    
	
Fax:
    
	
Attention:
    
	
Email:
    

 

[Signature Page to Amendment to Plan Support Agreement]Exhibit 10.2

 

PRIVILEGED & CONFIDENTIAL

PROTECTED BY FRE 408

 

TERM SHEET FOR

PROPOSED AMENDMENT TO SETTLEMENT AGREEMENT

BETWEEN PARAGON OFFSHORE PLC AND NOBLE CORPORATION PLC

 

This term sheet (“Term Sheet”) sets forth the principal terms of a proposed amendment to the compromise and settlement between Paragon Offshore plc (“Paragon”) and Noble Corporation plc (“Noble,” and, together with Paragon, the “Parties”) with respect to the matters described in the Definitive Settlement Agreement, dated as of April 29, 2016 (the “Settlement Agreement”), by and between Paragon and Noble.

 

Promptly following the execution of this Term Sheet, the Parties agree to work in good faith to negotiate and finalize the terms of the Amendment (as defined below) which incorporates (unless otherwise mutually agreed to the contrary in writing), in all material respects, the terms and conditions contemplated hereby.

 

Neither this Term Sheet nor the discussions, negotiations or other activities related to the subject matter herein create any binding obligations, liabilities or duties with respect to any Party. A binding agreement with respect to the matters referred to herein will result, if at all, only upon the execution and delivery of an amendment to the Settlement Agreement reasonably satisfactory in form and substance to the Parties (the “Amendment”), and subject to the terms and conditions set forth therein. Any Amendment will be subject to the approval of the Bankruptcy Court (as defined in the Settlement Agreement). For purposes of this Term Sheet, the term “Amendment” does not include this Term Sheet or any other preliminary written agreement, nor does it include any oral or written agreement in principle or the offer or acceptance of an offer by any Party to the Settlement Agreement.

 

This Term Sheet is protected by Rule 408 of the Federal Rules of Evidence and all other applicable statutes and doctrines protecting the use or disclosure of confidential information and information exchanged in the context of settlement discussions.

 

Unless otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to them in that certain tax sharing agreement, dated as of July 31, 2014, between the Parties (the “Tax Sharing Agreement”), or, where relevant, the form of the amendment to the tax sharing agreement attached as Exhibit B to the Settlement Agreement (the “Amendment to Tax Sharing Agreement”) to be executed upon the closing of the Settlement Agreement.

 

	
Amendment   to Tax Sharing Agreement
    	
The Parties   propose that the Amendment to Tax Sharing Agreement be amended to provide   that, during the Mexican Tax Indemnity Deferral Period, Paragon shall be   entitled to deliver a Paragon Note (as defined below), in lieu of cash, to   Noble in payment of any amount that Paragon owes Noble in respect of   Specified Mexican Taxes and Reimbursable Expenses (as defined
    

 

 

	
 
    	
below) under the   Amendment to Tax Sharing Agreement up to an aggregate amount of $5 million.

 

For the   avoidance of doubt, (i) Paragon shall not be entitled to deliver to   Noble any Paragon Note in payment of any amount in respect of Specified   Mexican Taxes or Reimbursable Expenses to the extent the aggregate principal   amount(s) of such Paragon Note and all other Paragon Notes, if any,   previously delivered to Noble in payment of any amount in respect of   Specified Mexican Taxes and Reimbursable Expenses would exceed $5 million,   (ii) the amounts that may be paid with a Paragon Note include amounts   owed for all out-of-pocket costs and expenses (e.g. professional fees, court   costs, third-party storage fees, etc.) required to be reimbursed to   Noble by Paragon (“Reimbursable   Expenses”), and (iii) Paragon shall be required to pay any   amount or amounts that Paragon owes Noble during the Mexican Tax Indemnity   Deferral Period in respect of Specified Mexican Taxes and Reimbursable   Expenses under the Amendment to Tax Sharing Agreement in excess of an   aggregate of $5 million.

 

“Mexican Tax Indemnity Deferral   Period” means the first four years after the Paragon Plan   Closing (as defined in the Settlement Agreement).
    
	
 
    	
 
    
	
Paragon   Notes
    	
“Paragon Notes”   means one or more promissory notes issued by Paragon and payable to Noble   with the following terms:
    
	
 
    	
 
    
	
 
    	
·                  Term:   All remaining principal and accrued but unpaid interest shall be due and   payable on the earliest of the (i) liquidation or dissolution of   Paragon, (ii) the sale of all or substantially all of the assets of   Paragon, (iii) the voluntary or involuntary bankruptcy of Paragon   following the Effective Date(1) of the Plan, (iv) any acceleration   of any other debt facility in excess of a de   minimis amount under which Paragon is an obligor or guarantor, or   (v) the fourth anniversary of the Effective Date.

·                  Amortization:   No amortization other than mandatory upon maturity.

·                  Interest   Rate: The Paragon Notes shall bear interest at either: 12% if paid in   cash or, at the election of Paragon, 15% if paid in kind.

·                  Default   Interest Rate: All past due amounts (principal and interest) to bear   interest at the applicable Interest Rate in effect plus 200 basis points.

·                  Interest   Payments: Payments of interest only will be due
    

 

(1)         “Effective Date” shall have the meaning ascribed to such term in the Second Amended Joint Chapter 11 Plan of Paragon Offshore PLC and its Affiliated Debtors (Docket No. 318) filed by Paragon and its affiliated debtors and debtors and possession in the Chapter 11 cases captioned In re Paragon Offshore PLC, Case No. 16-10386 (CSS) (Bankr. D. Del), as the same may be amended upon the consent of Noble and consistent with this term sheet (the “Plan”) .

 

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semiannually,   in arrears, on each of June 1 and December 31 in cash, until   maturity; provided, that Paragon shall have the option to pay any such   interest on a payment in kind basis by issuing an additional Paragon Note   with a principal amount equal to the amount of interest accrued at the   applicable payment in kind interest rate.

·                  Prepayment:   Prepayable, in whole or in part, at any time without penalty.

·                  Other   provisions: The Paragon Notes will contain other customary provisions common   in commercial promissory notes including provisions regarding default,   acceleration, governing law, enforcement and payment instructions.
    
	
 
    	
 
    
	
Implementation
    	
Effective as of   the Effective Date, the Parties will modify applicable provisions of the Amendment   to Tax Sharing Agreement to be consistent with the terms hereof. Otherwise,   the Amendment to Tax Sharing Agreement will remain as provided in the   Settlement Agreement, without modification thereto.
    
	
 
    	
 
    
	
 
    	
The Parties   intend to seek to negotiate the Amendment on terms substantially consistent   with the terms in this Term Sheet and, upon execution of such Amendment by   the Parties, Paragon shall seek approval of the Settlement Agreement, as   amended by the Amendment, with the Bankruptcy Court in a Chapter 11   proceeding.
    
	
 
    	
 
    
	
 
    	
Notwithstanding   anything herein to the contrary, the Parties’ obligations under “Amendment to Tax Sharing Agreement”, “Paragon Notes”, “Negotiation and Settlement of Certain Tax   Liabilities” and “Implementation”   are subject to consummation of the Plan, which will incorporate the terms of   this proposed settlement.
    
	
 
    	
 
    
	
Publicity
    	
Each Party will   reasonably cooperate with respect to any public announcement or other public   disclosure regarding this Term Sheet or the matters addressed hereby.
    
	
 
    	
 
    
	
Governing   Law
    	
The enforceable   obligations of the Parties under this Term Sheet shall be construed and   enforced in accordance with, and the rights of the Parties thereunder shall   be governed by, the laws of the State of New York, without giving effect to   the conflict of laws principles thereof.
    
	
 
    	
 
    
	
Counterparts
    	
This Term Sheet   may be executed in several counterparts, each of which shall be deemed to be   an original, and all of which together shall be deemed to be one and the same   agreement. Execution copies of this Term Sheet delivered by facsimile or PDF   shall be deemed to be an original for the purposes of this paragraph.
    

 

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IN WITNESS WHEREOF, the undersigned have executed this Term Sheet as of August 5, 2016.

 

 

	
 
    	
PARAGON   OFFSHORE PLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Randall D. Stilley
    
	
 
    	
 
    	
Name : Randall D.   Stilley
    
	
 
    	
 
    	
Title: President and   CEO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NOBLE   CORPORATION PLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Dennis J. Lubojacky
    
	
 
    	
 
    	
Name: Dennis J.   Lubojacky
    
	
 
    	
 
    	
Title: Chief Financial   Officer, Vice
    
	
 
    	
 
    	
President, Controller   and Treasurer
    

 

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