Document:

exv4w2

 

ROWAN COMPANIES, INC.

as the Company

and

U.S. BANK NATIONAL ASSOCIATION

as Trustee

FIRST SUPPLEMENTAL INDENTURE

Dated as of July 21, 2009

to

INDENTURE

Dated as of July 21, 2009

7.875% SENIOR NOTES DUE 2019

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE ONE Relation to Indenture; Definitions
	 	 	1	 
	SECTION 1.01. Relation to Indenture
	 	 	1	 
	SECTION 1.02. Definitions
	 	 	1	 
	SECTION 1.03. General References
	 	 	1	 
	 
	 	 	 	 
	ARTICLE TWO The Series of Securities
	 	 	1	 
	SECTION 2.01. The Form and Title of the Securities
	 	 	1	 
	SECTION 2.02. Amount
	 	 	2	 
	SECTION 2.03. Stated Maturity
	 	 	2	 
	SECTION 2.04. Interest and Interest Rates
	 	 	2	 
	SECTION 2.05. Place of Payment
	 	 	2	 
	SECTION 2.06. Optional Redemption
	 	 	2	 
	SECTION 2.07. Defeasance and Discharge; Covenant Defeasance
	 	 	2	 
	SECTION 2.08. Global Securities
	 	 	3	 
	 
	 	 	 	 
	ARTICLE THREE Amendments to Original Indenture
	 	 	3	 
	SECTION 3.01. Defined Terms
	 	 	3	 
	SECTION 3.02. Additional Event of Default
	 	 	6	 
	 
	 	 	 	 
	ARTICLE FOUR Additional Covenants
	 	 	7	 
	SECTION 4.01. Limitation on Liens
	 	 	7	 
	SECTION 4.02. Limitation on Sale and Leaseback Transactions
	 	 	7	 
	 
	 	 	 	 
	ARTICLE FIVE Miscellaneous
	 	 	8	 
	SECTION 5.01. Certain Trustee Matters
	 	 	8	 
	SECTION 5.02. Continued Effect
	 	 	8	 
	SECTION 5.03. Governing Law
	 	 	9	 
	SECTION 5.04. Counterparts
	 	 	9	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	Exhibit A: Form of Note
	 	 	 	 

First Supplemental Indenture

 

 

     FIRST SUPPLEMENTAL INDENTURE, dated as of July 21, 2009 (this “Supplemental Indenture”), by
and between ROWAN COMPANIES, INC., a corporation duly organized and existing under the
laws of the State of Delaware (the “Company”), and U.S. BANK NATIONAL ASSOCIATION, a
nationally chartered banking association, as trustee under the Indenture referred to below (in such
capacity, the “Trustee”).

RECITALS OF THE COMPANY

     WHEREAS, the Company and the Trustee have heretofore entered into an Indenture dated as of
July 21, 2009 (the “Original Indenture”) (the Original Indenture, as supplemented from time to
time, including without limitation pursuant to this Supplemental Indenture, being referred to
herein as the “Indenture”); and

     WHEREAS, under the Original Indenture, a new series of Securities may at any time be
established by an indenture supplemental to the Original Indenture; and

     WHEREAS, the Company proposes to create under the Indenture a new series of Securities; and

     NOW, THEREFORE, in consideration of the premises, agreements and obligations set forth herein
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree, for the equal and proportionate benefit of all
Holders of the Notes (as defined below), as follows:

ARTICLE ONE

Relation to Indenture; Definitions

     SECTION 1.01. Relation to Indenture.

     With respect to the Notes, this Supplemental Indenture constitutes an integral part of the
Indenture.

     SECTION 1.02. Definitions.

     For all purposes of this Supplemental Indenture, capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned thereto in the Original Indenture.

     SECTION 1.03. General References.

     Unless otherwise specified or unless the context otherwise requires, (i) all references in
this Supplemental Indenture to Articles and Sections refer to the corresponding Articles and
Sections of this Supplemental Indenture and (ii) the terms “herein”, “hereof”, “hereunder” and any
other word of similar import refer to this Supplemental Indenture.

ARTICLE TWO

The Series of Securities

     SECTION 2.01. The Form and Title of the Securities.

     There is hereby established a new series of Securities to be issued under the Indenture and to
be designated as the Company’s 7.875% Senior Notes due 2019 (the “Notes”). The Notes shall be
substantially in the form attached as Exhibit A hereto, in each case with such appropriate
insertions, omissions, substitutions and other variations as are required or permitted by the
Indenture, and may have such letters, numbers or other marks of identification and such legends or
endorsements placed thereon as the Company may deem appropriate or as may be required or
appropriate to comply with any laws or with

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any rules made pursuant thereto or with the rules of any securities exchange or automated
quotation system on which the Notes may be listed or traded, or to conform to general usage, or as
may, consistently with the Indenture, be determined by the officers executing such Notes, as
evidenced by their execution thereof.

     The Notes shall be executed, authenticated and delivered in accordance with the provisions of,
and shall in all respects be subject to, the terms, conditions and covenants of the Original
Indenture as supplemented by this Supplemental Indenture (including the form of Note attached as
Exhibit A hereto (the terms of which are incorporated in and made a part of this
Supplemental Indenture for all intents and purposes)).

     SECTION 2.02. Amount.

     The aggregate principal amount of the Notes that may be authenticated and delivered pursuant
hereto is unlimited. The Trustee shall initially authenticate and deliver Notes for original issue
in an initial aggregate principal amount of up to $500,000,000, upon delivery to the Trustee of a
Company Order for the authentication and delivery of such Notes. The aggregate principal amount of
the Notes to be issued hereunder may be increased at any time hereafter and the series may be
reopened for issuances of Additional Notes, upon Company Order, without the consent of any Holder
and without any further supplement or amendment to the Original Indenture or this Supplemental
Indenture. The Notes issued on the date hereof and any such Additional Notes that may be issued
hereafter shall be part of the same series of Securities for all purposes under the Indenture.

     SECTION 2.03. Stated Maturity.

     The Notes may be issued on any Business Day on or after July 21, 2009, and the Stated Maturity
of the Notes shall be August 1, 2019.

     SECTION 2.04. Interest and Interest Rates.

     The rate or rates at which the Notes shall bear interest, the date or dates from which such
interest shall accrue, the Interest Payment Dates on which any such interest shall be payable and
the Regular Record Date for any interest payable on any Interest Payment Date, in each case, shall
be as set forth in the form of Note attached as Exhibit A hereto.

     SECTION 2.05. Place of Payment.

     As long as any Notes are Outstanding, the Company shall maintain an office or agency in the
United States where Notes may be presented for payment. Such office or agency shall initially be
the office or agency of the Trustee in Houston, Texas.

     SECTION 2.06. Optional Redemption.

     At its option, the Company may redeem the Notes, in whole or in part, in principal amounts of
$2,000 or integral multiples of $1,000 in excess thereof, at any time or from time to time, at the
applicable Redemption Price determined as set forth in the form of Note attached hereto as
Exhibit A, in accordance with the terms set forth in the Notes and in accordance with
Article Eleven of the Original Indenture.

     SECTION 2.07. Defeasance and Discharge; Covenant Defeasance.

     Article Thirteen of the Original Indenture (as amended and supplemented by this Supplemental
Indenture) shall apply to the Notes. Furthermore, the additional Event of Default specified in
Section 3.02. of this Supplemental Indenture, each of the covenants set forth in ARTICLE Four of
this Supplemental Indenture, and the Events of Default specified in Sections 5.1(c) and 5.1(d) of
the Original

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Indenture, shall, in each case, constitute “Additional Defeasible Provisions” (as such term is
used in the Original Indenture).

     SECTION 2.08. Global Securities.

     The Notes shall initially be issuable in whole or in part in the form of one or more Global
Securities. Such Global Securities (i)  shall be deposited with, or on behalf of, the Depository
Trust Company, New York, New York, which shall act as Depositary with respect to the Notes, (ii)
shall bear the legends applicable to Global Securities set forth in Sections 2.2 and 2.4 of the
Original Indenture, (iii) may be exchanged in whole or in part for Securities in definitive form
upon the terms and subject to the conditions provided in Section 3.5 of the Original Indenture and
in this Supplemental Indenture and (iv) shall otherwise be subject to the applicable provisions of
the Indenture.

ARTICLE THREE

Amendments to Original Indenture

     With respect to the Notes, the Original Indenture is hereby amended as set forth below in this
ARTICLE Three; provided, however, that each such amendment shall apply only to the Notes and not to
any other series of Securities issued under the Indenture.

     SECTION 3.01. Defined Terms.

     Subject to the limitations set forth in the preamble to ARTICLE Three of this Supplemental
Indenture, Section 1.1 of the Original Indenture is hereby amended by inserting or restating, as
the case may be, each of the following defined terms in its appropriate alphabetical position:

     “Additional Defeasible Provisions” means the provisions of Sections 5.1(c), 5.1(d),
5.1(h), 10.7 and 10.8 of the Indenture.

     “Additional Notes” means an unlimited maximum aggregate principal amount of Notes
(other than the Notes issued on the date hereof) issued under the Indenture pursuant to
Section 2.02. of this Supplemental Indenture.

     “Attributable Indebtedness,” when used with respect to any Sale and Leaseback
Transaction, means, as at the time of determination, the present value (discounted at the
rate set forth or implicit in the terms of the lease included in such transaction) of the
rental payments during the remaining term of the lease included in such Sale and Leaseback
Transaction (other than amounts required to be paid on account of taxes, maintenance,
repairs, insurance, assessments, utilities, operating and labor costs and other items that
do not constitute payments for property rights), including any period for which such lease
has been extended. In the case of any lease which is terminable by the lessee upon the
payment of a penalty, such net amount shall be the lesser of the net amount determined
assuming termination upon the first date such lease may be terminated (in which case the net
amount shall also include the amount of the penalty, but no rent shall be considered as
required to be paid under such lease subsequent to the first date upon which it may be so
terminated) or the net amount determined assuming no such termination.

     “Capital Lease Obligation” means, at the time any determination is to be made, the
amount of the liability in respect of a capital lease that would at that time be required to
be capitalized on a balance sheet in accordance with GAAP, and the stated maturity thereof
shall be the date of the last payment of rent or any other amount due under such lease prior
to the first date upon which such lease may be prepaid by the lessee without payment of a
penalty.

     “Capital Stock” means:

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3

 

     (1) in the case of a corporation, corporate stock;

     (2) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock;

     (3) in the case of a partnership or limited liability company, partnership interests
(whether general or limited) or membership interests; and

     (4) any other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing Person.

     “Consolidated Net Tangible Assets” of any Person means the total amount of assets
(after deducting applicable reserves and other properly deductible items) of such Person and
its consolidated Subsidiaries minus all current liabilities (excluding liabilities that are
extendable or renewable at the option of such Person or any of its consolidated Subsidiaries
to a date more than 12 months after the date of calculation and excluding current maturities
of long-term indebtedness) and all goodwill, trade names, trademarks, patents, unamortized
indebtedness discount and expense and other like intangible assets. Consolidated Net
Tangible Assets of any Person shall be based on the most recently available consolidated
quarterly balance sheet of such Person, and shall be calculated in accordance with GAAP.

     “Funded Indebtedness” means all Indebtedness that matures on or is renewable to a date
more than one year after the date the Indebtedness is incurred.

     “Indebtedness” of any Person means:

     (1) all indebtedness of such Person for borrowed money (whether full or limited
recourse);

     (2) all obligations of such Person evidenced by bonds, debentures, notes or other
similar instruments;

     (3) all obligations of such Person under letters of credit or other similar
instruments, other than standby letters of credit, performance bonds and other obligations
issued in the ordinary course of business, to the extent not drawn or, to the extent drawn,
if such drawing is reimbursed not later than the third business day following demand for
reimbursement;

     (4) all obligations of such Person to pay the deferred and unpaid purchase price of
property or services, except trade payables and accrued expenses incurred in the ordinary
course of business;

     (5) all Capital Lease Obligations of such Person;

     (6) all Indebtedness of others secured by a Lien on any asset of such Person: provided
that if the obligations so secured have not been assumed in full or are not otherwise fully
such Person’s legal liability, then such obligations may be reduced to the value of the
asset or the liability of such Person; and

     (7) all Indebtedness of others (other than endorsements in the ordinary course of
business) guaranteed by such Person to the extent of such guarantee.

     “Issue Date” means the first date on which any Notes are issued, authenticated and
delivered under the Indenture.

First Supplemental Indenture

4

 

     “Joint Venture” means any partnership, corporation or other entity in which up to and
including 50% of the partnership interests, outstanding Voting Stock or other equity
interests is owned, directly or indirectly, by the Company and/or one or more Subsidiaries
of the Company.

     “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset, regardless of whether filed,
recorded or otherwise perfected under applicable law (including any conditional sale or
other title retention agreement, any lease in the nature thereof, any option or other
agreement to sell or give a security interest in any asset and any filing of or agreement to
give any financing statement under the Uniform Commercial Code (or equivalent statutes) of
any jurisdiction).

     “Notes” means a series of Securities designated as the Company’s 7.875% Senior Notes
due 2019, issued pursuant to this Indenture, as amended and supplemented by the First
Supplemental Indenture hereto dated as of July 21, 2009.

     “Permitted Liens” means:

     (1) Liens existing on the Issue Date;

     (2) Liens on any Person’s property or assets existing at the time the Company acquires
such Person or its property or assets, or at the time such Person becomes a Subsidiary of
the Company;

     (3) intercompany Liens in favor of the Company or any Subsidiary of the Company;

     (4) Liens on assets either (a) securing all or part of the cost of acquiring,
constructing, improving, developing or repairing the assets or (b) securing Indebtedness
incurred to finance the acquisition of the assets or the cost of constructing, improving,
developing, expanding or repairing the assets and commencing commercial operation of the
assets if the applicable Indebtedness was incurred prior to, at the time of or within 24
months after the acquisition, or completion of construction, improvement, development,
expansion or repair of the assets or their commencing commercial operation;

     (5) Liens in favor of governmental entities to secure (a) payments under any contract
or statute to secure progress or advance payments or (b) industrial development, pollution
control or similar indebtedness;

     (6) governmental Liens under contracts for the sale of products or services;

     (7) Liens imposed by law, such as mechanic’s or workmen’s Liens;

     (8) Liens under workers’ compensation laws or similar legislation;

     (9) Liens in connection with legal proceedings or securing taxes or other assessments;

     (10) statutory or other Liens arising in the ordinary course of business of the Company
or of any Subsidiary of the Company and relating to amounts that are not yet delinquent or
that the Company or any Subsidiary of the Company is contesting in good faith;

     (11) Liens on stock, partnership or other equity interests of the Company in any Joint
Venture or of any Subsidiary of the Company that owns an equity interest in a Joint Venture
to secure Indebtedness contributed or advanced solely to that Joint Venture;

First Supplemental Indenture

5

 

     (12) good faith deposits in connection with bids, tenders, contracts or leases;

     (13) deposits made in connection with maintaining self-insurance, to obtain the
benefits of laws, regulations or arrangements relating to unemployment insurance, old age
pensions, social security or similar matters or to secure surety, appeal or customs bonds;
and

     (14) any extensions, substitutions, renewals or replacements of the above-described
Liens.

     “Principal Property” means any drilling rig, or integral portion thereof, owned or
leased by the Company or any Subsidiary of the Company and used for drilling offshore oil
and gas wells, which, in the opinion of the Board of Directors of the Company, is of
material importance to the business of the Company and its Subsidiaries considered as a
whole; provided, however that no such drilling rig, or portion thereof, shall be deemed of
material importance if its net book value (after deducting accumulated depreciation) is less
than 2% of the Consolidated Net Tangible Assets of the Company.

     “Sale and Leaseback Transaction” means any arrangement with any Person under which the
Company or any Subsidiary of the Company leases any Principal Property that the Company or
that Subsidiary has or will sell or transfer to that Person; provided, however, that each of
the following shall be deemed not to be a Sale and Leaseback Transaction:

     (1) temporary leases for a term of not more than five years;

     (2) intercompany leases between the Company and a Subsidiary or between two or more
Subsidiaries of the Company; and

     (3) leases of a Principal Property executed by the time of or within 12 months after
the acquisition, the completion of construction, alteration, improvement or repair, or the
commencement of commercial operation of such Principal Property.

     “Significant Subsidiary” means any Subsidiary of the Company that would be a
“significant subsidiary” as defined in Article 1, Rule 1-02(w) of Regulation S-X,
promulgated pursuant to the Securities Act, as such Regulation is in effect on the Issue
Date.

     “Subsidiary” means, with respect to any Person,

     (1) any corporation, association or other business entity of which more than 50% of the
total voting power of the Voting Stock thereof is at the time owned or controlled, directly
or indirectly, by such Person; and

     (2) any partnership (a) the sole general partner or the managing general partner of
which is such Person or an entity described in clause (1) and related to such Person or (b)
the only general partners of which are such Person or of one or more entities described in
clause (1) and related to such Person (or any combination thereof ).

     “Voting Stock” of any specified Person as of any date means the Capital Stock of such
Person that is at the time entitled to vote in the election of the Board of Directors (or
similar governing body) of such Person.

     SECTION 3.02. Additional Event of Default.

     With respect to the Notes, the occurrence of any of the following events shall, in
addition to the other events or circumstances described as Events of Default in Section 5.1
of the Original

First Supplemental Indenture

6

 

Indenture, constitute an Event of Default: default under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or evidenced any
Indebtedness of the Company or any of its Significant Subsidiaries (or the payment of which
is guaranteed by the Company or any of its Significant Subsidiaries), whether such
Indebtedness or guarantee now exists or is created after the date of issuance of the Notes,
if (a) that default (x) is caused by a failure to pay principal of or premium, if any, or
interest on such Indebtedness prior to the expiration of the grace period provided in such
Indebtedness on the date of such default (a “Payment Default”), or (y) results in the
acceleration of such Indebtedness prior to its express maturity, and (b) in each case
described in clauses (x) or (y) above, the principal amount of any such Indebtedness,
together with the principal amount of any other such Indebtedness under which there has been
a Payment Default or the maturity of which has been so accelerated, aggregates $35.0 million
or more.

ARTICLE FOUR

Additional Covenants

     With respect to the Notes, Article Ten of the Original Indenture is hereby amended as set
forth below in this ARTICLE Four; provided, however, that each such amendment shall apply only to
the Notes and not to any other series of Securities issued under the Indenture.

     SECTION 4.01. Limitation on Liens.

     Subject to the limitations set forth in the preamble to ARTICLE Four of this Supplemental
Indenture, Article Ten of the Original Indenture is hereby further amended by adding the following
Section 10.7 thereto:

     Section 10.7 Limitation on Liens.

     (a) The Company shall not, and shall not permit any of its Subsidiaries to, issue,
assume or guarantee any Indebtedness for borrowed money secured by any Lien upon any
Principal Property without making effective provision whereby the Notes (together with, if
the Company shall so determine, any other Indebtedness or other obligation of the Company or
any Subsidiary) shall be secured equally and ratably with (or, at the option of the Company,
prior to) the Indebtedness so secured for so long as such Indebtedness is so secured. The
foregoing restrictions will not, however, apply to Indebtedness secured by Permitted Liens.

     (b) Notwithstanding the immediately preceding paragraph (a), without securing the
Notes, the Company or any Subsidiary of the Company may issue, assume or guarantee
Indebtedness that such paragraph (a) would otherwise restrict or prohibit, in a total
principal amount that, when added to all of other outstanding Indebtedness of the Company
and its Subsidiaries that such paragraph (a) would otherwise restrict or prohibit and the
total amount of Attributable Indebtedness outstanding for Sales and Leaseback Transactions
(other than any such Attributable Indebtedness for outstanding Sale and Leaseback
Transactions in connection with which the Company has voluntarily retired debt securities
issued under this Indenture, Indebtedness of equal rank or Funded Indebtedness (in each case
as described in clause (3) of Section 10.8)), does not exceed 15% of the Consolidated Net
Tangible Assets of the Company.

     SECTION 4.02. Limitation on Sale and Leaseback Transactions.

     Subject to the limitations set forth in the preamble to ARTICLE Four of this Supplemental
Indenture, Article Ten of the Original Indenture is hereby further amended by adding the following
Section 10.8 thereto:

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7

 

     Section 10.8 Limitation on Sale and Leaseback Transactions.

     The Company shall not, and shall not permit any of its Subsidiaries to, enter into a
Sale and Leaseback Transaction, unless one of the following applies:

     (1) the Company or such Subsidiary of the Company could incur Indebtedness in a
principal amount equal to the Attributable Indebtedness for that Sale and Leaseback
Transaction and, without violating Section 10.7, could secure that Indebtedness by a Lien on
the property to be leased without equally or ratably securing the Notes;

     (2) after the issuance of the Notes and within the period beginning nine months before
the closing of the Sale and Leaseback Transaction and ending nine months after such closing,
the Company or any of its Subsidiaries have expended for property used or to be used in the
ordinary course of business an amount equal to all or a portion of the net proceeds of the
transaction, and the Company has elected to designate that amount as a credit against that
transaction (with any amount not so designated to be applied as set forth in clause (3)
below or as otherwise permitted); or

     (3) during the nine-month period after the effective date of the Sale and Leaseback
Transaction, the Company has applied to the voluntary defeasance or retirement of any debt
securities under the Indenture, any Indebtedness of equal rank to the Notes or any Funded
Indebtedness, an amount equal to the net proceeds of the sale or transfer of the property
leased in the Sale and Leaseback Transaction (or, if greater, the fair value of that
property at the time of the Sale and Leaseback Transaction as determined by the Board of
Directors of the Company) adjusted to reflect the remaining term of the lease and any amount
expended as set forth in the immediately preceding clause (2).

ARTICLE FIVE

Miscellaneous

     SECTION 5.01. Certain Trustee Matters.

     The recitals contained herein shall be taken as the statements of the Company, and the Trustee
assumes no responsibility for their correctness.

     The Trustee makes no representations as to the validity or sufficiency of this Supplemental
Indenture or the Notes or the proper authorization or the due execution hereof or thereof by the
Company.

     Except as expressly set forth herein, nothing in this Supplemental Indenture shall alter the
duties, rights or obligations of the Trustee set forth in the Original Indenture.

     The Trustee makes no representation or warranty as to the validity or sufficiency of the
information contained in the prospectus supplement related to the Notes, except such information
which specifically pertains to the Trustee itself, or any information incorporated therein by
reference.

     SECTION 5.02. Continued Effect.

     Except as expressly supplemented and amended by this Supplemental Indenture, the Original
Indenture shall continue in full force and effect in accordance with the provisions thereof, and
the Original Indenture (as supplemented and amended by this Supplemental Indenture) is in all
respects hereby ratified and confirmed. This Supplemental Indenture and all its provisions shall
be deemed a part of the Original Indenture in the manner and to the extent herein and therein
provided.

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8

 

     SECTION 5.03. Governing Law.

     This Supplemental Indenture and the Notes shall be governed by and construed in accordance
with the laws of the State of New York.

     SECTION 5.04. Counterparts.

     This instrument may be executed in any number of counterparts, each of which shall be deemed
to be an original, but all such counterparts shall together constitute but one and the same
instrument.

(Remainder of Page Intentionally Left Blank)

First Supplemental Indenture

9

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and delivered, all as of the date first written above.

	 	 	 	 	 	 	 
	 	 	THE COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	ROWAN COMPANIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ William H. Wells 	 	 
	 

	 	Name:
	 	
 

William H. Wells
	 	 
	 	 	Title:	 	Vice President, Finance and Chief Financial
Officer

First Supplemental Indenture

 

	 	 	 	 	 	 	 
	 	 	TRUSTEE:	 	 
	 
	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Steven A. Finklea 	 	 
	 

	 	Name:
	 	
 

Steven A. Finklea	 	 
	 

	 	Title:
	 	
Authorized Officer
	 	 

First Supplemental Indenture

 

EXHIBIT A

[FORM OF FACE OF NOTE]

[If a Global Security, insert—THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE
THEREOF. THIS SECURITY MAY NOT BE TRANSFERRED TO, OR REGISTERED OR EXCHANGED FOR SECURITIES
REGISTERED IN THE NAME OF, ANY PERSON OTHER THAN THE DEPOSITARY OR A NOMINEE THEREOF AND NO SUCH
TRANSFER MAY BE REGISTERED, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. EVERY
SECURITY AUTHENTICATED AND DELIVERED UPON REGISTRATION OF TRANSFER OF, OR IN EXCHANGE FOR OR IN
LIEU OF, THIS SECURITY SHALL BE A GLOBAL SECURITY SUBJECT TO THE FOREGOING, EXCEPT IN SUCH LIMITED
CIRCUMSTANCES.]

[If a Global Security, insert—UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF
THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION, TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.]

ROWAN COMPANIES, INC.

7.875% Senior Note due 2019

			
	 	 	 
	No.                                         
	 	U.S.$                                                            

CUSIP: 779382AK6

ISIN: US779382AK60

     ROWAN COMPANIES, INC., a Delaware corporation (herein called the “Company”, which term
includes any successor or resulting Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to                                         , or registered assigns, the principal sum
of                                                              United States Dollars on August 1, 2019, and to pay interest
thereon from July 21, 2009, or from the most recent Interest Payment Date to which interest has
been paid or duly provided for, semi-annually on February 1 and August 1 in each year, commencing
on February 1, 2010, at the rate of 7.875% per annum, until the principal hereof is paid or made
available for payment and at the rate of 7.875% per annum on any overdue principal and premium and
on any overdue installment of interest (to the extent that the payment of such interest shall be
legally enforceable). The amount of interest payable for any period shall be computed on the basis
of twelve 30-day months and a 360-day year. The amount of interest payable for any partial period
shall be computed on the basis of a 360-day year of twelve 30-day months and the days elapsed in
any partial month. In the event that any date on which interest is payable on this Security is not
a Business Day, then a payment of the interest payable on such date will be made on the next
succeeding day which is a Business Day (and without any interest or other payment in respect of any
such delay) with the same force and effect as if made on the date the payment was originally
payable. A “Business Day” shall mean, when used with respect to any Place of Payment, each Monday,
Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in that
Place of Payment are authorized or obligated by law, executive order or regulation to close. The
interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will,
as provided in such Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the “Regular Record Date” for
such interest, which shall be the January 15 or July 15 (whether or not a Business Day), as the
case may be, next preceding such Interest Payment Date. Any such interest not so punctually paid
or duly provided for shall forthwith cease to be payable to the Holder on such Regular Record Date
and may either be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice of which shall be given to Holders of

 

 

Securities of this series not less than 10 days prior to such Special Record Date, or be paid
at any time in any other lawful manner not inconsistent with the requirements of any securities
exchange or automated quotation system on which the Securities of this series may be listed or
traded, and upon such notice as may be required by such exchange or automated quotation system, all
as more fully provided in such Indenture.

     [If a Global Security, insert—Payment of the principal of (and premium, if any) and any such
interest on this Security will be made by transfer of immediately available funds to a bank account
in the United States of America designated by the Holder in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts.]

     [If a Definitive Security, insert—Payment of the principal of (and premium, if any) and any
such interest on this Security will be made at the office or agency of the Company maintained for
that purpose in the Borough of Manhattan, the City and State of New York, in such coin or currency
of the United States of America as at the time of payment is legal tender for payment of public and
private debts or subject to any laws or regulations applicable thereto and to the right of the
Company (as provided in the Indenture) to rescind the designation of any such Paying Agent, at the
offices of                                          in the Borough of Manhattan, The City and State of New York, or at
such other offices or agencies as the Company may designate, by United States Dollar check drawn
on, or transfer to a United States Dollar account maintained by the payee with, a bank in The City
of New York (so long as the applicable Paying Agent has received proper transfer instructions in
writing at least 10 days prior to the payment date); provided, however, that payment of interest
may be made at the option of the Company by United States Dollar check mailed to the addresses of
the Persons entitled thereto as such addresses shall appear in the Security Register or by transfer
to a United States Dollar account maintained by the payee with a bank in The City of New York (so
long as the applicable Paying Agent has received proper transfer instructions in writing by the
Record Date prior to the applicable Interest Payment Date).]

     Reference is hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

     Unless the certificate of authentication hereon has been executed by the Trustee referred to
on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under
the Indenture or be valid or obligatory for any purpose.

     IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

Dated:                                         ,           

	 	 	 	 	 	 	 
	 	 	ROWAN COMPANIES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

This is one of the Securities of the series designated 7.875% Senior Notes due 2019 referred to in
the within-mentioned Indenture.

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

          Authorized Signatory
	 	 

 

 

[REVERSE OF NOTE]

ROWAN COMPANIES, INC.

7.875% Senior Note due 2019

     This Security is one of a duly authorized issue of senior securities of the Company (the
“Securities”), issued and to be issued in one or more series under an Indenture, dated as of July
21, 2009, as amended and supplemented by the First Supplemental Indenture thereto dated as of July
21, 2009 (such Indenture, as so amended and supplemented being referred to herein as the
“Indenture”), between the Company and U.S. Bank National Association, a national banking
association organized and existing under the laws of the United States of America, as Trustee (the
“Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and
all indentures supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, obligations, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are
to be, authenticated and delivered. This Security is one of the series designated on the face
hereof.

     This Security is redeemable, in whole or in part, at the Company’s option at any time prior to
maturity at a redemption price equal to the greater of (a) 100% of the principal amount of this
Security, and (b) as determined by the Quotation Agent (as defined below), the sum of the present
values of the remaining scheduled payments of principal and interest (not including any portion of
those payments of interest accrued as of the date of redemption) discounted to the date of
redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at
the Adjusted Treasury Rate (as defined below) plus 50 basis points, plus, in each case, accrued and
unpaid interest to the date of redemption.

     For purposes of determining any redemption price, the following definitions shall apply:

     “Adjusted Treasury Rate” means, with respect to any date of redemption, the rate per annum
equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue (as defined
below), assuming a price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price (as defined below) for the date of
redemption. The Adjusted Treasury Rate will be calculated on the third Business Day preceding the
redemption date.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
applicable Quotation Agent as having a maturity comparable to the remaining term of this Security
that would be utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable maturity to the
remaining term of this Security.

     “Comparable Treasury Price” means, with respect to any date of redemption, (a) the average of
the Reference Treasury Dealer Quotations (as defined below) for the date of redemption, after
excluding the highest and lowest Reference Treasury Dealer Quotations, or (b) if the Company
obtains fewer than four such Reference Treasury Dealer Quotations, the average of all such
Reference Treasury Dealer Quotations.

     “Quotation Agent” means the Reference Treasury Dealer (as defined below) appointed by the
Company.

     “Reference Treasury Dealer” means (a) Barclays Capital Inc. and Goldman Sachs & Co. and their
successors; provided, however, that if any of the foregoing shall cease to be a primary U.S.
Government securities dealer (a “Primary Treasury Dealer”), the Company shall substitute another
Primary Treasury Dealer; and (b) any other Primary Treasury Dealer selected by the Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m. (New York City
time) on the third Business Day preceding that redemption date.

     Unless the Company defaults in payment of the redemption price, on and after the date of
redemption, interest will cease to accrue on this Security or the portions hereof called for
redemption.

 

 

     In the event of redemption of this Security in part only, a new Security or Securities of this
series and of like tenor for the unredeemed portion hereof will be issued in the name of the Holder
hereof upon the cancellation hereof.

     The Indenture contains provisions for defeasance at any time of (1) the entire indebtedness of
this Security or (2) certain restrictive covenants and Events of Default with respect to this
Security, in each case upon compliance with certain conditions set forth in the Indenture.

     If an Event of Default with respect to Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Indenture.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of each series to be affected (with each series voting as a separate class). The
Indenture also contains provisions permitting the Holders of specified percentages in principal
amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all
Securities of such series, to waive compliance by the Company with certain provisions of the
Indenture and certain past defaults under the Indenture and their consequences. Any such consent
or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon
all future Holders of this Security and of any Security issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, regardless of whether notation of such consent or
waiver is made upon this Security.

     No Holder of this Security shall have any right to institute any proceeding, judicial or
otherwise, with respect to the Indenture, or for the appointment of a receiver or trustee, or for
any other remedy hereunder, unless (a) such Holder has previously given written notice to the
Trustee of a continuing Event of Default with respect to the Securities of this series, (b) the
Holders of not less than 25% in principal amount of the Outstanding Securities of this series shall
have made written request to the Trustee to institute proceedings in respect of such Event of
Default in its own name as Trustee hereunder, (c) such Holder or Holders have offered to the
Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in
compliance with such request, (d) the Trustee for 60 days after its receipt of such notice, request
and offer of indemnity has failed to institute any such proceeding and (e) no direction
inconsistent with such written request has been given to the Trustee during such 60-day period by
the Holders of a majority in principal amount of the Outstanding Securities of this series; it
being understood and intended that no one or more of such Holders shall have any right in any
manner whatsoever by virtue of, or by availing of, any provision of this Indenture to affect,
disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain
priority or preference over any other of such Holders or to enforce any right under this Indenture,
except in the manner herein provided and for the equal and ratable benefit of all such Holders.

     No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place(s) and rate, and
in the coin or currency, herein prescribed.

     [If a Global Security, insert—This Global Security or portion hereof may not be exchanged for
Definitive Securities of this series except in the limited circumstances provided in the Indenture.
The holders of beneficial interests in this Global Security will not be entitled to receive
physical delivery of Definitive Securities except as described in the Indenture and will not be
considered the Holders thereof for any purpose under the Indenture.]

     [If a Definitive Security, insert—As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registerable in the Security
Register, upon surrender of this Security for registration of transfer at the office or agency of
the Company in The City of New York, or, subject to any laws or regulations applicable thereto and
to the right of the Company (limited as provided in the Indenture) to rescind the designation of
any such transfer agent, at the offices of                                          in the Borough of Manhattan, The City
of New York or at such other offices or agencies as the Company may designate, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Company and the
Security Registrar duly executed by, the Holder hereof or his attorney duly authorized in writing,
and thereupon one or more new Securities of this series and of like tenor, of authorized
denominations and for the same aggregate principal amount, will be issued to the designated
transferee or transferees.]

 

 

     The Securities of this series are issuable only in registered form without coupons in
denominations of U.S. $2,000 and any integral multiple of U.S. $1,000 in excess thereof. As
provided in the Indenture and subject to certain limitations therein set forth, Securities of this
series are exchangeable for a like aggregate principal amount of Securities of this series and of
like tenor of a different authorized denomination, as requested by the Holder surrendering the
same.

     No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the owner hereof for all purposes, whether or not this Security is
overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

     No recourse under or upon any obligation, covenant or agreement of or contained in the
Indenture or of or contained in any Security, or for any claim based thereon or otherwise in
respect thereof, or because of the creation of any indebtedness represented thereby, shall be had
against any incorporator, shareholder, member, officer, manager or director, as such, past, present
or future, of the Company or of any successor Person, either directly or through the Company or any
successor Person, whether by virtue of any constitution, statute or rule of law, or by the
enforcement of any assessment, penalty or otherwise; it being expressly understood that all such
liability is hereby expressly waived and released by the acceptance hereof and as a condition of,
and as part of the consideration for, the execution of the Indenture and the issuance of the
Securities.

     This Security shall be governed by and construed in accordance with the laws of the State of
New York.

     All terms used in this Security which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

 

 

     [If a Definitive Security, insert as a separate page—

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto
                                                             (Please Print or Typewrite Name and Address of Assignee) the within
instrument of ROWAN COMPANIES, INC., and does hereby irrevocably constitute and appoint
                                         Attorney to transfer said instrument on the books of the within-named
corporation, with full power of substitution in the premises.

Please Insert Social Security or

Other Identifying Number of Assignee:

	 	 	 	 	 
	 
	 	 

	 
	 	 	 	 
	Dated:

	 	 
	 	 
	 

	 	 
	 	 
	 

	 	 	 	(Signature)

	 	 	 
	Signature Guarantee:

	 	 
	 

	 	 
	 

	 	(Participant in a Recognized Signature
	 

	 	Guaranty Medallion Program)

     NOTICE: The signature to this assignment must correspond with the name as written upon the
face of the within instrument in every particular, without alteration or enlargement or any change
whatsoever.

 

 

     [If a Global Security, insert as a separate page—

SCHEDULE OF INCREASES OR DECREASES

IN GLOBAL SECURITY

     The following increases or decreases in this Global Security have been made:

	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	Amount of	 	Principal Amount	 	 
	 	 	Decrease in	 	Increase in	 	of this Global	 	Signature of
	 	 	Principal	 	Principal Amount	 	Security Following	 	Authorized Officer
	 	 	Amount of this	 	of this	 	Such Decrease	 	of Trustee or
	Date of Exchange	 	Global Security	 	Global Security	 	(or Increase)	 	Depositaryex10_1.htm

    
      
        

      
Exhibit 10.1

      

      

       

      AGREEMENT
AND AMENDMENT NO. 3 TO CREDIT AGREEMENT

       

      THIS
AGREEMENT AND AMENDMENT NO. 3 TO CREDIT AGREEMENT (this “Amendment”) is made
as of June 28, 2009, by and between MEXICAN RESTAURANTS, INC., a Texas
corporation (the “Borrower”), and WELLS
FARGO BANK, N.A., a national banking association (the “Lender”).

       

      WHEREAS,
the Borrower and the Lender are parties to a certain Credit Agreement, dated as
of June 29, 2007, as amended (the “Credit Agreement”);
terms used herein and not otherwise defined are used herein as defined in the
Credit Agreement; and

       

      WHEREAS,
the Borrower has requested that the Lender amend Sections 1.1, 4.2 and 7.1(c) of
the Credit Agreement;

       

      NOW,
THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
parties hereto agree as follows:

       

      1.           Amendments to Credit
Agreement.

       

      1.1           The
defined term “Maturity Date” set forth in Section 1.1 of the Credit Agreement is
hereby amended and restated in its entirety to read as follows:

       

      “Maturity
Date.  June 29, 2012.”

       

      1.2           The
Applicable Margin table set forth in the definition of “Applicable Margin” in
Section 1.1 of the Credit Agreement is hereby amended and restated in its
entirety as follows:

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	
                                          Applicable
      Margin

                                        
	
                                          Pricing
      Level

                                        	
                                          Total

                                          Leverage
      Ratio

                                        	
                                          Commitment
      Fee

                                        	
                                          LIBOR
      Loans

                                        	
                                          Base
      Rate Loans

                                        	
                                          Letter
      of Credit Fee

                                        
	
                                          I

                                        	
                                          >
      1.5:1.0

                                        	
                                          0.50%

                                        	
                                          3.00%

                                        	
                                          1.00%

                                        	
                                          3.00%

                                        
	
                                          II

                                        	
                                          <
      1.5:1.0

                                        	
                                          0.50%

                                        	
                                          2.75%

                                        	
                                          0.75%

                                        	
                                          2.75%

                                        

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

       

      1.3          Section
4.2 of the Credit Agreement is hereby amended to (i) delete “and” at the end of
Section 4.2(e); (ii) replace “.” at the end of Section 4.2(f) with “; and”; and
(iii) add the following subsection (g) at the end thereof:

       

      “(g)        solely
as a condition to any requested Revolving Credit Loan or Letter of Credit to be
used to fund Growth Capital Expenditures, after giving effect to all requested
Revolving Credit Loans and Letters of Credit on a pro forma basis as of the end
of the most recently completed Measurement Period, the Total Leverage Ratio
shall not exceed (i) 1.75:1.00 during the period from the Closing Date through
the end of the second Fiscal Quarter of Fiscal Year 2009, and (ii) 1.25:1.00
during the third Fiscal Quarter of the Fiscal Year 2009 and all fiscal periods
thereafter.”

       

      1.4           Section
7.1(c) of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:

       

      “(c)
Reserved.”

       

      2.           Conditions to
Effectiveness.  The amendments to the Credit Agreement
contemplated hereby shall become effective as of the date first written above,
provided that
(i) the Lender shall have received from the Borrower a counterpart of this
Amendment duly executed by the Borrower and (ii) the Borrower shall have paid
the attorneys’ fees of the Lender incurred in connection with this
Amendment.

       

      3.           Representations.

       

      The
Borrower represents and warrants to the Lender, as follows:

       

      (a)           upon
giving effect to this Amendment, no Default has occurred and is continuing as of
the date hereof;

       

      (b)           the
representations and warranties contained in Section V of the Credit Agreement
are true and correct in all material respects on and as of the date hereof
(except to the extent that such representations and warranties expressly relate
to an earlier date); and

       

      (c)           the
resolutions referred to in Section 4.1 of the Credit Agreement remain in full
force and effect on and as of the date hereof.

       

      6.           General.  The
foregoing amendments to the Credit Agreement are limited as provided herein and
do not extend to any other provisions of the Credit Agreement not specified
herein or to any other matter.  The Credit Agreement is ratified and
confirmed and shall continue in full force and effect as amended
hereby.  This Amendment may be executed in any number of counterparts
with the same effect as if the signatures hereto and thereto were upon the same
instrument.

       

      [Signature
page follows.]

       

      
        
          
            

             

          

           

        

        
           

          
            

          

        

        
           

        

      

      

       

      IN
WITNESS WHEREOF, THIS AGREEMENT AND AMENDMENT NO. 3 TO CREDIT AGREEMENT has been
executed as a sealed instrument as of the date first written above.

       

                                              MEXICAN RESTAURANTS,
INC.

      

      

                                              By:     /s/
Andrew J. Dennard

                                              Name:  Andrew J.
Dennard

                                              Title:   
Chief Financial Officer

       

                                              WELLS FARGO BANK,
N.A

       

                                              By:    /s/
Todd Alcantara

                                              Name:  Todd
Alcantara

                                              Title:   
Vice President

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