Common use of Exercise of the Over-Allotment Option Clause in Contracts

Exercise of the Over-Allotment Option. The Parties agree that if the Underwriters exercise their Over-Allotment Option with respect to the Offering, the Company shall redeem Common Units from Seadrill with the net proceeds therefrom after the Underwriters’ discount and commissions but before expenses; the number of Common Units redeemed will be equal to the number of Common Units for which the Underwriters exercise their Over-Allotment Option.