Exhibit 10.12

 

SECOND AMENDMENT TO

NINTH AMENDED AND RESTATED

CREDIT AGREEMENT

 

This SECOND AMENDMENT dated as of December 21, 2004 (this “Second Amendment”) to
that certain NINTH AMENDED AND RESTATED CREDIT AGREEMENT, as amended (as so
amended, the “Credit Agreement”), dated as of December 31, 2003, is among GULF
ISLAND FABRICATION, INC., a Louisiana corporation (“Borrower”), GULF ISLAND,
L.L.C., a Louisiana limited liability company (“Gulf Island Subsidiary”),
DOLPHIN SERVICES, INC., a Louisiana corporation (“Dolphin”), SOUTHPORT, L.L.C.,
a Louisiana limited liability company and successor by merger to Southport, Inc.
(“Southport”), and GULF ISLAND MINDOC COMPANY, L.L.C. (formerly Vanguard Ocean
Services, L.L.C.), a Louisiana limited liability company (“MinDOC”) as
Guarantors, WHITNEY NATIONAL BANK, a national banking association (“Whitney”)
and JPMORGAN CHASE BANK, N.A. (successor by merger to BANK ONE, N.A., Chicago)
in its individual capacity (“JPMorgan”) (Whitney and JPMorgan, each a “Lender”
and collectively the “Lenders”) and JPMorgan, as Agent and LC Issuer.

 

WHEREAS, Borrower has decided that it is in its best interest to cause GIF
Finance, Inc. to be merged with and into Gulf Island Subsidiary; and

 

WHEREAS, Since the date of the Credit Agreement, Bank One, N.A., Chicago, has
been merged with and into JPMorgan Chase Bank, N.A.; and

 

WHEREAS, The Parties wish to execute this Second Amendment to reflect such
changes on the terms and conditions set forth herein;

 

NOW, THEREFORE, the parties hereto do hereby amend the Credit Agreement, all on
the terms and conditions hereof and do hereby agree as follows:

 

1. Unless otherwise defined herein, all defined terms used in this Second
Amendment shall have the same meaning ascribed to such terms in the Credit
Agreement. From and after the date hereof, each reference in the Credit
Agreement and in any Collateral Document or Guaranty to “Bank One,” either in
its individual capacity as a Lender or in its capacities as Agent and LC Issuer,
shall mean “JPMorgan.”

 

2. The merger of GIF Finance, Inc. with and into Gulf Island Subsidiary and the
cancellation by confusion of all Indebtedness owed by GIF Finance, Inc. to Gulf
Island Subsidiary are approved. The Credit Agreement is hereby amended by
deleting GIF Finance, Inc. as a Guarantor, one of the Existing Subsidiaries, and
a Subordinated Lender. The Subordination Agreement is hereby terminated and
cancelled.

 

3. Section 5.19 of the Credit Agreement is hereby amended to delete the phrase
“… the Subordination Agreement, and…”

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4. Section 6.10(iv)(y) of the Credit Agreement is hereby deleted, and Section
6.10(iv)(z) is re-lettered as Section 6.10(iv)(y).

 

5. Section 6.10(vi) of the Credit Agreement is hereby deleted, and Sections
6.10(vii) and (viii) are re-designated as Sections 6.10(vi) and Section
6.10(vii).

 

6. Section 6.16 of the Credit Agreement is hereby deleted and replaced with the
phrase “intentionally omitted,” and Section 7.3 is hereby amended to delete the
reference to Section 6.16.

 

7. Section 6.22.3 of the Credit Agreement is hereby amended to delete the phrase
“…or to GIF Finance…”

 

8. Except to the extent its provisions are specifically amended, modified or
superseded by this Second Amendment, the representations, warranties and
affirmative and negative covenants of the Borrower contained in the Credit
Agreement are incorporated herein by reference for all purposes as if copied
herein in full. The Borrower hereby restates and reaffirms each and every term
and provision of the Credit Agreement, as amended, including, without
limitation, all representations, warranties and affirmative and negative
covenants. Except to the extent its provisions are specifically amended,
modified or superseded by this Second Amendment, the Credit Agreement, as
amended, and all terms and provisions thereof shall remain in full force and
effect, and the same in all respects are confirmed and approved by the parties
hereto.

 

9. Each Guarantor hereby consents to the execution of this Second Amendment and
reaffirms its Guaranty of all of the obligations of the Borrower. Each such
Guarantor further acknowledges and consents to any increase in the obligations
owed by such Guarantor as the result of this Second Amendment, including, but
not limited to any increase arising from the merger of GIF Finance, Inc. with
and into Gulf Island Subsidiary and the deletion of GIF Finance, Inc. as a
Guarantor and Existing Subsidiary. Borrower and Guarantor acknowledge and agree
that this Second Amendment shall not be considered a novation or a new contract.
Borrower and each Guarantor acknowledge that all existing rights, titles,
powers, Liens, security interests and estates in favor of the Lenders constitute
valid and existing obligations and Liens and security interests as against the
Collateral in favor of the Administrative Agent for the benefit of the Lenders.
Borrower and each Guarantor confirm and agree that (a) neither the execution of
this Second Amendment nor the consummation of the transactions described herein
shall in any way effect, impair or limit the covenants, liabilities, obligations
and duties of the Borrower and each Guarantor under the Loan Documents and (b)
the obligations evidenced and secured by the Loan Documents continue in full
force and effect. Each Guarantor hereby further confirms that it unconditionally
guarantees to the extent set forth in the Guaranty the due and punctual payment
and performance of any and all amounts and obligations owed the Borrower under
the Credit Agreement or the other Loan Documents.

 

10. Borrower and each Guarantor that has executed any mortgage, security
agreement, pledge, or other security device as security for the obligations
under the Credit Agreement hereby acknowledges and affirms that such security
remains in effect for the obligations evidenced by the Credit Agreement, as
amended by this Second Amendment.

 

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11. This Second Amendment may be executed in any number of counterparts and all
of such counterparts taken together shaft be deemed to constitute one and the
same instrument.

 

12. THIS SECOND AMENDMENT AND THE LOAN DOCUMENTS (OTHER THAN THOSE CONTAINING A
CONTRARY EXPRESS CHOICE OF LAW PROVISION) SHALL BE CONSTRUED IN ACCORDANCE WITH
THE INTERNAL LAWS OF LOUISIANA, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO
NATIONAL BANKS.

 

[REMAINDER OF PAGE INTENTIONALLY BLANK]

 

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IN WITNESS WHEREOF, the Borrower, the Guarantors, the Lenders, the LC Issuer and
the Agent have executed this Second Amendment as of the date first above
written.

 

BORROWER: GULF ISLAND FABRICATION, INC.

By:

 

/s/ Kerry J. Chauvin

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Kerry J. Chauvin,

   

President & CEO

GUARANTORS: GULF ISLAND, L.L.C.

By:

 

/s/ Kirk J. Meche

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Kirk J. Meche, President & CEO

DOLPHIN SERVICES, INC.

By:

 

/s/ William J. Fromenthal

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William J. Fromenthal, President

& CEO

SOUTHPORT, L.L.C.

By:

 

/s/ Jacques C. Olivier

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Jacques C. Olivier, President

   

& CEO

GULF ISLAND MINDOC COMPANY, L.L.C.

By:

 

/s/ Kerry J. Chauvin

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Kerry J. Chauvin, Manager

 

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LENDERS:

JPMorgan Chase Bank, N.A.,

Successor by merger to Bank One, NA, Chicago

Individually, as LC Issuer, and as Agent

By:

 

/s/ J. Charles Freel

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J. Charles Freel, Vice President

 

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    WHITNEY NATIONAL BANK

By:

 

/s/ Josh J. Jones

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Josh J. Jones, Assistant Vice President

 

 

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