Document:

Exhibit

Exhibit 4.3

Dated    28th April 2016    
        

(1)    SEADRILL MANAGEMENT AS

(2)    SEADRILL MANAGEMENT LTD

(3)    SEADRILL PARTNERS LLC    
        
        

Novation and Amendment Agreement in respect of the 
Management and Administrative Services Agreement 
dated 24 October 2012    
        

THIS NOVATION AND AMENDMENT AGREEMENT (the “Novation Agreement”) is made on 28th April 2016.
BETWEEN:
		
	(1)
	SEADRILL MANAGEMENT AS, a company incorporated in Norway and having an office at Løkkeveien 111, 4007 Stavanger, Norway (the “Transferor”);

		
	(2)
	SEADRILL MANAGEMENT LTD, a company registered and incorporated in England and Wales with company number 08276358 and having its registered office at 2nd Floor Building 11, Chiswick Business Park 566 Chiswick High Road, London, W4 5YS (the “Transferee”); and

		
	(3)
	SEADRILL PARTNERS LLC, a company incorporated in the Marshall Islands and having an office at 2nd Floor, Building 11, Chiswick Business Park, 566 Chiswick High Road, London W4 5YS, UK (the “Remaining Party”)

(each a “Party” and together the “Parties”).
WHEREAS:
		
	(A)
	The Transferor and the Remaining Party entered into a contract for the provision of management and administrative services dated 24 October 2012 (the “Management Agreement”).

		
	(B)
	The Transferor wishes to be released and discharged from and the Transferee has agreed to perform and assume the obligations and liabilities under the Management Agreement.

		
	(C)
	The Transferee and the Remaining Party wish to amend certain terms of the Management Agreement, as detailed herein, to account for an alteration in the services to be provided.

NOW:
The Parties hereby agree as follows:
		
	1.
	Definitions and Interpretation

		
	1.1
	Except where the context otherwise indicates or requires, the following terms in this Novation Agreement shall have the following meanings:

		
	1.1.1
	“Paragraph” means a paragraph in this Novation Agreement;

		
	1.1.2
	“Transfer Date” means 1 April 2013; and

		
	1.1.3
	“Transferred Interest” means the Transferor’s undivided legal and beneficial interest in and under the Management Agreement, together with all rights, title, obligations, liabilities and interests attaching thereto.

		
	1.2
	In relation to the interpretation of this Novation Agreement:

		
	1.2.1
	unless the context otherwise requires, the singular shall be deemed to include the plural and vice versa;

		
	1.2.2
	the words and phrases “other”, “including” and “in particular” shall not limit the generality of the preceding words or be construed as being limited to the same class as the preceding words where a wider construction is possible; and

		
	1.2.3
	reference to any law, statute or other legislative or regulatory order is to the same as amended, modified or replaced from time to time and to any regulation, rule, delegated legislation or order made thereunder.

		
	2.
	Novation of Management Agreement

		
	2.1
	The Parties agree that, in consideration of the assumption by the Transferee of the Transferred Interest, with effect on and from the Transfer Date, in respect of the Management Agreement:

		
	2.1.4
	the Transferor shall cease to be a party to the Management Agreement in respect of the Transferred Interest and the Transferee shall become a party to the Management Agreement in respect of the Transferred Interest and shall assume the liabilities, perform the obligations and be entitled to the rights and benefits therein in place of the Transferor in respect of the Transferred Interest;

		
	2.1.5
	the Transferee undertakes and covenants as a separate obligation with the Transferor and the Remaining Party to assume, observe, perform, discharge and be bound by all liabilities and obligations in respect of the Transferred Interest and shall assume the liabilities, perform the obligations and be entitled to the rights and benefits therein in place of the Transferor in respect of the Transferred Interest; and

		
	2.1.6
	the Remaining Party and the Transferee shall each release and discharge the Transferor from the observance, performance and discharge of each of the liabilities and obligations assumed by the Transferee in respect of the Transferred Interest pursuant to this Paragraph 2.1 and shall accept the like observance, performance and discharge of those liabilities and obligations of the Transferee in place thereof provided that (without prejudice to the effect of the arrangements in respect of the Transferred Interest) the Transferor shall not be so released and shall retain all such liabilities in cases of its wilful misconduct or fraud or in relation to any transfer which does not comply in all material respects with the provisions of this Novation Agreement;

		
	2.2
	Notwithstanding the provisions of Paragraph 2.1, the Transferor shall be bound and continue to be bound by this Paragraph 2.2 (which shall take effect as an agreement separate and independent from the Management Agreement and/or any side agreement), to observe and perform such duties of confidentiality and non-disclosure owed to the other parties to the Management Agreement or any side agreement as would have been applicable to it under the Management Agreement or any side agreement had it continued to be a party to those agreements in respect of the Transferred Interest.

		
	2.3
	This Novation Agreement shall be treated as constituting all actions, confirmations, consents and undertakings required of the Transferor, the Transferee and the Remaining Party under the Management Agreement or any side agreement for the purpose of giving effect to the transfer to the Transferee of the Transferred Interest.

		
	2.4
	Each reference in this Novation Agreement to the Management Agreement or any side agreement shall be construed and shall have effect as a reference to the same as it may have been supplemented and/or amended and/or novated and/or extended.

		
	3.
	Amendment of Management Agreement

		
	3.1
	With effect on and from the Transfer Date:

		
	3.1.1
	Clause 3.3.10 of the Management Agreement is deleted and replaced with:

“3.3.10    As may be requested by the Board from time to time, the Manager shall either (a) cause certain of its officers or employees or (b) arrange for suitably qualified third party individuals (collectively, the “Manager’s Officers”) to perform as officers of the Company, including in the capacities of Chief Executive Officer and Chief Financial Officer, or provide such general administrative services as may be required by the Company including accounting services, access to and consolidation of information in the Seadrill Group enterprise resource planning systems, and advice and assistance in the general administration and management of the business, with all of the duties of officers of the Company as provided by the Board pursuant to the terms of the Operating Agreement, subject to the sole direction of the Board and subject to clause 9 hereof.”
		
	3.1.2
	Schedule 2 of the Management Agreement is deleted in its entirety.

2

		
	3.1.3
	In clause 1.1 of the Management Agreement, the words “and the subsidiaries of the Company listed on Schedule 1 to this Agreement” are deleted and Schedule 1 is deleted in its entirety.

		
	3.1.4
	In clause 3.3.3(c) of the Management Agreement, the words “arrange for the Company to settle its debts and accounts payable to third parties as such fall due, while pursuing” are deleted and replaced with “be authorised to make payments to third parties on behalf of the Company using the Company’s funds, and may pursue”.

		
	3.1.5
	In clause 3.3.3(d) of the Management Agreement, the words “settle all inter-company accounts between the Company and other companies in the Seadrill Group” are deleted and replaced with “be authorised to make payments to other companies in the Seadrill Group on behalf of the Company using the Company’s funds”.

		
	3.1.6
	Clauses 5.1 to 5.4 of the Management Agreement are deleted and replaced with:

“5.1    The Company shall pay to the Manager a fee to be agreed from time to time by the Parties (the “Fee”) for proposed charges including any direct and indirect costs and expenses reasonably incurred by the Manager in connection with the provision of the Management Services.
5.2    The Manager shall deliver an invoice for the Fee to the Company periodically in arrears. Within 30 days following the end of each calendar quarter, the Manager shall prepare a statement of the proposed Fee for providing the Management Services, setting forth the basis for calculation with reference, if relevant, to the relative size of the Company’s operations, in such detail as reasonably required. The Manager shall then deliver an invoice to the Company for the corresponding Fee. The Company shall pay all undisputed charges within 30 days of receipt of the Manager’s invoice.
5.3    All sums payable under this Agreement are exclusive of VAT and any other duty or tax, which shall (if and to the extent applicable) be payable by the Company at the rate and in the manner from time to time prescribed by law, subject to receipt by the Company of a valid VAT invoice.
5.4    Except as otherwise expressly provided in this Agreement or otherwise agreed in writing between the parties, each party shall be responsible for its own costs incurred in preparing and performing its obligations under this Agreement.”
		
	3.1.7
	In clause 9.1 of the Management Agreement, the words “shall have an initial term of five (5) years unless” are deleted and replaced with “may be”.

		
	3.1.8
	In clause 9.2 of the Management Agreement, the two references to “Manager’s employees” are deleted and replaced with “Manager’s Officers”.

		
	3.1.9
	Clause 10 of the Management Agreement is deleted and replaced with “The Manager shall be under no liability of any kind or nature whatsoever in the event of a failure to perform any of the Management Services if such failure is directly or indirectly caused by any event beyond the Manager’s control, including (without limitation) war, war-like activities, government order, riot, civil commotion, strike or lock-out or similar actions, acts of God, perils of the sea or any other similar cause beyond the Manager's control.”

		
	3.1.10
	In clause 12 of the Management Agreement, the address of the Company is amended to “Seadrill Partners LLC, 2nd Floor, Building 11, Chiswick Business Park, 566 Chiswick High Road, London W4 5YS” and the address of the Manager is amended to “Seadrill Management Ltd, 2nd Floor, Building 11, Chiswick Business Park, 566 Chiswick High Road, London W4 5YS”.

		
	4.
	Miscellaneous

		
	4.1
	This Novation Agreement may be executed in any number of counterparts to the same effect as if the executions on the counterparts were on a single text of this Novation Agreement but shall not be completed and take effect until each Party has executed a counterpart.

3

		
	4.2
	This Novation Agreement shall be governed by and construed in accordance with English law and each of the Transferor, the Transferee and the Remaining Party hereby irrevocably agrees that the courts of England shall have exclusive jurisdiction in relation to any claim, dispute or difference concerning this Novation Agreement and any matter arising in respect of this Novation Agreement.

		
	4.3
	Save as expressly provided in this Novation Agreement, all other provisions of the Management Agreement shall remain in full force and effect and shall be binding on the parties thereto, insofar as the same are in force and effect and binding on those parties immediately prior to the date first written above.

		
	4.4
	The parties intend that no provision of this Novation Agreement shall, by virtue of the Contracts (Rights of Third Parties) Act 1999, confer any benefit on nor be enforceable by any person who is not a party to this Novation Agreement.

IN WITNESS whereof the Parties have caused this Novation Agreement to be executed and delivered on the day and year first written above.

Signed for and on behalf of
SEADRILL MANAGEMENT AS
/s/ Jon Olav Østhus
Jon Olav Østhus

Signed for and on behalf of
SEADRILL MANAGEMENT LTD
/s/ David Sneddon
David Sneddon

Signed for and on behalf of
SEADRILL PARTNERS LLC
/s/ Mark Morris
Mark Morris

4Exhibit

LOAN AGREEMENT
This loan agreement (this "Agreement") is entered into on April 28, 2016 by and between:
		
	(1)
	Seadrill Hungary Kft (the "Lender")

and
		
	(2)
	Seadrill Limited (the "Borrower")

(hereinafter jointly referred to as the "Parties" and, individually, as a "Party").
WHEREAS:
		
	(A)
	Seadrill Limited (“SDRL”) owns 46.6% of Seadrill Partners LLC (“SDLP”).

		
	(B)
	SDRL owns 49% and SDLP owns 51% of Seadrill Capricorn Holdings LLC (“Capricorn”).

		
	(C)
	Seadrill Neptune Hungary Kft (“Neptune”) is a wholly owned subsidiary of SDRL, and both the Lender, which is the rig owner of the West Sirius, and Seadrill Gulf Operations Sirius LLC (“Sirius”), which is the bareboat charterer of the West Sirius, are wholly owned subsidiaries of Capricorn.

		
	(D)
	Due to the termination of the drilling contract for the West Sirius made between BP and Sirius, BP is obliged to pay to Sirius monthly termination payments until July 23, 2017 (the “BP Termination Payments”).

		
	(E)
	Sirius, in turn, is obliged to pay the Lender USD 143,000,000 as the balance of the termination fee due under the bareboat charter agreement for the West Sirius (the “BBC Termination Fee”).

		
	(F)
	Neptune has agreed to make a loan (the “Sirius Loan”) in the amount of USD 143,000,000 to Sirius to enable Sirius to pay the BBC Termination Fee, which loan is governed by a loan agreement dated as of the date hereof (the “Sirius Loan Agreement”). The Lender, as the sister of Sirius, and the Borrower, as the parent of Neptune, have each received a copy of the Sirius Loan Agreement.

		
	(G)
	The Lender has agreed, on the terms set forth herein, to make a loan in the amount of USD 143,000,000 to the Borrower.

NOW THEREFORE, it is hereby agreed as follows:
		
	1.
	EFFECTIVE DATE

The effective date of the Agreement is December 17, 2015 (the “Effective Date”).
		
	2.
	LOAN AND PURPOSE

		
	2.1
	The Lender agrees to make a loan in the amount of USD 143,000,000 (the “Loan”) to the Borrower on the terms and conditions set out herein.

		
	2.2
	The purpose of the Loan is to provide cash to the Borrower to be used by the Borrower and its subsidiaries for satisfying working capital requirements. 

		
	2.3
	The Parties agree that the Loan shall be deemed disbursed to the Borrower as of the Effective Date.

		
	3.
	INTEREST

		
	3.1
	The Borrower shall, with effect from the Effective Date, pay interest on the outstanding balance of the Loan at a rate equal to the sum of 0.56% per annum plus one-month LIBOR (determined two business days before the start of the relevant interest period) until repayment of the Loan in full.

		
	3.2
	In the event of the non-payment of an amount hereunder by the Borrower on the relevant due date (including as a result of the operation of Section 4.4 below), a default interest rate of 2% per annum plus one-month LIBOR (determined as of each day) shall apply from (and including) the date subsequent to such date until the applicable non-payment has been effected.

		
	4.
	REPAYMENT

1

		
	4.1
	Effective from the Effective Date, but subject to the conditions contained in Section 4.4 below, the Borrower shall repay the Loan to the Lender in monthly installments that correspond to the amounts of the BP Termination Payments made in any such month, plus any accrued and unpaid interest on the principal amount of the Loan repaid. The Borrower shall make each payment no later than the business day immediately following the day on which the BP Termination Payment is made.   

		
	4.2
	Subject to the conditions contained in Section 4.4 below, any amounts of principal and interest on the Loan that remain outstanding following the final settlement of the BP Termination Payments shall be repaid in full on August 31, 2017.

		
	4.3
	Notwithstanding anything to the contrary contained in this Section 4, the Borrower shall be entitled to prepay the Loan in full or in part at any time without penalty.

		
	4.4
	The Parties acknowledge and agree that (i) the obligation of the Borrower to make any payment of principal or interest then due on the Loan as provided in Section 4.1, Section 4.2 or Section 7.2 is conditioned on the prior or contemporaneous payment (the “Sirius Loan Payment”) by Sirius to Neptune of an equivalent amount of principal and interest on the Sirius Loan and (ii) in the event that such Sirius Loan Payment is not paid by Sirius to Neptune in full when due, the obligation of the Borrower to make the payment of principal or interest then due on the Loan pursuant to Section 4.1, Section 4.2, or Section 7.2, as the case may be, shall be deferred until such date as Sirius makes such Sirius Loan Payment in full to Neptune.  The Parties further acknowledge and agree, for the avoidance of doubt, that this Section 4.4 defers only the timing of one or more payments on the Loan required to be made by the Borrower to the Lender under this Section 4, but does not otherwise limit, reduce, or modify in any respect the Borrower’s obligation to repay to the Lender all outstanding principal and accrued and unpaid interest on the Loan.   

		
	4.5
	In order to facilitate the payment arrangements described in Section 4.4, the Parties agree for the benefit of Neptune, Sirius, and each Party hereto to use  commercially reasonable efforts (i) to coordinate with Neptune and Sirius the timing, making and receipt of payments under this Agreement and under the Sirius Loan Agreement and (ii) to confer, in the event any payment on the Loan is deferred for more than twelve consecutive months, in good faith with the other Party hereto, Neptune and Sirius to determine the reasons for the deferral and to consider other means to enable the deferred payments to be made as promptly as practicable.  

		
	4.6
	The Parties acknowledge and agree, for the benefit of Neptune, Sirius and each Party hereto, that (i) the Parties hereto intend that this Agreement and the Sirius Loan Agreement (the “Related Documents”) be construed as consistent agreements operating in parallel with each other, (ii) Neptune, Sirius, and each Party hereto have entered into the Related Documents on this basis, and (iii)   the Borrower will make, and has been advised that Sirius has agreed to make, all required payments under the Related  Documents without giving effect to any rights of offset, counterclaim, or transfers of receivables or liabilities between the Parties hereto, Neptune, and Sirius not contained within the Related Documents.

		
	5.
	PARI PASSU RANKING

		
	5.1
	The amounts from time to time outstanding hereunder shall be unsecured.

		
	5.2
	The Borrower’s payment obligations under this Agreement shall have equal rank to the claims of all of the Borrower’s other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally.

		
	6.
	TAX GROSS UP

All payments made by the Borrower under this Agreement to the Lender shall be made free and clear and without deduction or withholding for or on account of any tax or withholding which the Lender is required to make. 
		
	7.
	EVENTS OF DEFAULT

		
	7.1
	Each of the events or circumstances set out below constitutes an event of default (“Event of Default”):

		
	(i)
	the Borrower fails to pay any sum payable under this Agreement when due (taking into account the operation of Section 4.4 and unless its failure to pay is caused by administrative or technical error) and the Lender notifies the Borrower in writing of such failure to pay, unless payment is made within three business days after receipt of such notice; 

2

		
	(ii)
	the Borrower is unable or admits inability to pay its debts as they fall due, or suspends making payments on its debts generally; or

		
	(iii)
	any corporate action, legal proceedings or other procedure or step is taken in relation to bankruptcy or insolvency proceedings in respect of the Borrower, the winding up or dissolution of the Borrower (save for the purposes of a solvent reorganization), the enforcement of security over any material portion of the Borrower’s assets or any enforcement of any material debts of the Borrower.

		
	7.2
	On and at any time after the occurrence and during the continuance of an Event of Default the Lender may, by notice to the Borrower:

		
	(i)
	declare the Loan, together with accrued interest, and all other amounts accrued or outstanding under this Agreement to be immediately due and payable, whereupon they shall become immediately due and payable; and/or

		
	(ii)
	exercise any or all of its rights, remedies and powers under this Agreement or otherwise;

provided that the obligation of the Borrower to make payments under this Section 7.2 shall be subject to the operation of Section 4.4 above.
		
	8.
	COSTS AND EXPENSES

All costs and expenses (including legal fees and any VAT thereon) incurred by the Lender in connection with this Agreement shall be for the Borrower’s account.
		
	9.
	GOVERNING LAW; JURISDICTION; CERTAIN THIRD PARTY RIGHTS

		
	9.1
	This Agreement and any dispute or claim arising out of, or in connection with, it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the law of England and Wales.

		
	9.2
	Each Party irrevocably agrees that, subject as provided below, the courts of England and Wales shall have exclusive jurisdiction over any dispute or claim that arises out of, or in connection with, this Agreement or its subject matter or formation (including non-contractual disputes or claims). Nothing in this clause shall limit the right of the Lender to take proceedings against the Borrower in any other court of competent jurisdiction, nor shall the taking of proceedings in any one or more jurisdictions preclude the taking of proceedings in any other jurisdictions, whether concurrently or not, to the extent permitted by the law of such other jurisdiction. 

		
	9.3
	A person who is not a Party has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or enjoy the benefit of any term of this Agreement, except for Neptune and Sirius with respect to their rights under Section 4.5 and Section 4.6 only. 

		
	9.4
	Notwithstanding any term of any Related Document, the consent of any person who is not a Party is not required to rescind or vary this Agreement at any time. 

		
	10.
	RESTATEMENT

This Agreement is entered into on the date first above written for the purposes of correcting errors and omissions contained in the Loan Agreement, entered into on March 7, 2016, between Lender and Borrower. Accordingly, and effective as of the Effective Date, this Agreement amends and restates, and replaces in its entirety, such Loan Agreement.

[Signature page to follow]

3

SIGNATURE PAGE

	
		
	Lender
For and on behalf of
Seadrill Hungary Kft

Signature:  /s/ Attila Urbanovics     
Name: Attila Urbanovics 
Title: Managing Director

Signature:  /s/ John T. Roche       
Name: John T. Roche 
Title: Managing Director

	Borrower
For and on behalf ofSeadrill Limited

Signature:  /s/ Georgina Sousa
Name: Georgina Sousa 
Title: Director and Secretary

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