Permitted Subordinated Indebtedness

Permitted Subordinated Indebtedness. Indebtedness issued by Borrower or any Subsidiary Guarantor to any Permitted Investor or any of their respective Affiliates which is subordinated in all respect to the Obligations, including with respect to rights, remedies and payment, the proceeds of which are used solely to finance the purchase of the Specified Rigs and to pay any fees and expenses incurred in connection therewith.

Permitted Subordinated Indebtedness. Any Indebtedness that: (i) is made expressly subordinate in right of payment to the Indebtedness evidenced by the Notes in form and substance satisfactory to the Required Holders, (ii) not provide at any time for the payment, prepayment, repayment, repurchase or defeasance, directly or indirectly, of any principal or premium, if any, thereon at any time a Defeasance Failure exists until at least ninety-one (91) days after the Maturity Date