exv10w1



 





Exhibit 10.1





FIRST AMENDMENT TO

REVOLVING CREDIT AND SECURITY AGREEMENT




     THIS FIRST AMENDMENT TO REVOLVING CREDIT AND SECURITY AGREEMENT (this “Amendment”) is
made and entered into effective as of the 10th day of August, 2006 (the “Effective Date”),
by and between HORIZON OFFSHORE, INC., a Delaware corporation (“Holdings”), HORIZON
OFFSHORE CONTRACTORS, INC., a Delaware corporation (“Contractors”), HOC OFFSHORE, S. DE
R.L. DE C.V., a Mexican limited liability company (“HOC”), HORIZON MARINE CONTRACTORS
(MALAYSIA) SDN BHD, a Malaysian private company (“Malaysia”), PT HORIZON OFFSHORE
INDONESIA, an Indonesia PMA (“Indonesia”), HORIZON MARINE CONSTRUCTION (MAURITIUS) LTD., a
Mauritius limited liability company (“Mauritius”) and HORIZON MARINE CONSTRUCTION LTD., a
Cayman Islands limited liability company (“Construction”) (Holdings, Contractors, HOC,
Malaysia, Indonesia, Mauritius, and Construction, individually and collectively, “Borrower”
or “Borrowers”), and PNC BANK, NATIONAL ASSOCIATION, as Agent and a Lender (the
“Agent”).



PRELIMINARY STATEMENTS




     A. The Borrowers, the Agent and the Lenders signatory thereto (the “Lenders”) are
parties to that certain Revolving Credit and Security Agreement dated April 28, 2006 (the
“Credit Agreement”); and



     B. The Borrowers, Agent and the Lenders desire to amend the Credit Agreement and Agent and the
Lenders are willing to do so subject to the terms and conditions set forth herein.



     NOW, THEREFORE, in consideration of the premises herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending
to be legally bound, agree as follows:



ARTICLE I

DEFINITIONS




     1.01 Capitalized terms used in this Amendment are defined in the Credit Agreement, as amended
hereby, unless otherwise stated.



ARTICLE II

AMENDMENT




     2.01 Amendment to Section 1.2. Effective as of the date hereof, Section 1.2
of the Credit Agreement is hereby amended by amending and restating the definition of “Letter of
Credit Sublimit” contained therein in its entirety to provide as follows:



          “‘Letter of Credit Sublimit’ shall mean $23,000,000.”




 









 








ARTICLE III

CONDITIONS PRECEDENT




     3.01 Conditions to Effectiveness. The effectiveness of this Amendment is subject to
the satisfaction of the following conditions precedent, unless specifically waived in writing by
the Agent:




     (a) The Agent shall have received this Amendment duly executed by Borrower, in form and
substance satisfactory to the Agent and its legal counsel;




     (b) The representations and warranties contained herein and in the Credit Agreement and
the Other Documents shall be true and correct as of the date hereof, as if made on the date
hereof; and




     (c) No Default or Event of Default shall have occurred and be continuing.



ARTICLE IV

NO WAIVER




     4.01 No Waiver. Nothing contained in this Amendment shall be construed as a waiver by
the Agent or any Lender of any covenant or provision of the Credit Agreement, the Other Documents,
this Amendment, or of any other contract or instrument between any Borrower and the Agent or any
Lender, and the failure of the Agent or any Lender at any time or times hereafter to require strict
performance by each Borrower of any provision thereof shall not waive, affect or diminish any right
of the Agent to thereafter demand strict compliance therewith. The Agent and each Lender hereby
reserves all rights granted under the Credit Agreement, the Other Documents, this Amendment and any
other contract or instrument between any of them.



ARTICLE V

RATIFICATIONS, REPRESENTATIONS AND WARRANTIES




     5.01 Ratifications. The terms and provisions set forth in this Amendment shall modify
and supersede all inconsistent terms and provisions set forth in the Credit Agreement and the Other
Documents, and, except as expressly modified and superseded by this Amendment, the terms and
provisions of the Credit Agreement and the Other Documents are ratified and confirmed and shall
continue in full force and effect. Each Borrower hereby agrees that all liens and security
interest securing payment of the Obligations under the Credit Agreement are hereby collectively
renewed, ratified and brought forward as security for the payment and performance of the
Obligations. Each Borrower, the Agent and the Lenders agree that the Credit Agreement and the
Other Documents, as amended hereby, shall continue to be legal, valid, binding and enforceable in
accordance with their respective terms.



     5.02 Representations and Warranties. Each Borrower hereby represents and warrants to
the Agent and the Lenders that (a) the execution, delivery and performance of this Amendment and
any and all Other Documents executed and/or delivered in connection herewith have been authorized
by all requisite corporate action on the part of such Borrower and will not violate the Certificate
of Incorporation or By-Laws (or applicable organization or governing documents) of any Borrower;
(b) the representations and warranties contained in the Credit



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Agreement, as amended hereby, and the Other Documents are true and correct on and as of the
date hereof and on and as of the date of execution hereof as though made on and as of each such
date; (c) no Default or Event of Default under the Credit Agreement, as amended hereby, has
occurred and is continuing, unless such Default or Event of Default has been specifically waived in
writing by the Agent; (d) each Borrower is in full compliance with all covenants and agreements
contained in the Credit Agreement and the Other Documents, as amended hereby; and (e) no Borrower
has amended its Certificate of Incorporation or By-Laws (or applicable organizational or governing
documents) since the date of the Credit Agreement.



ARTICLE VI

MISCELLANEOUS PROVISIONS




     6.01 Survival of Representations and Warranties. All representations and warranties
made in the Loan Agreement or the Other Documents, including, without limitation, any document
furnished in connection with this Amendment, shall survive the execution and delivery of this
Amendment and the Other Documents, and no investigation by the Agent or any Lender shall affect the
representations and warranties or the right of the Agent and Lenders to rely upon them.



     6.02 Reference to Credit Agreement. Each of the Credit Agreement and the Other
Documents, and any and all other agreements, documents or instruments now or hereafter executed and
delivered pursuant to the terms hereof or pursuant to the terms of the Credit Agreement, as amended
hereby, are hereby amended so that any reference in the Credit Agreement and such Other Documents
to the Credit Agreement shall mean a reference to the Credit Agreement as amended hereby.



     6.03 Expenses of the Agent. Each Borrower agrees to pay on demand all reasonable
costs and expenses incurred by the Agent in connection with any and all amendments, modifications,
and supplements to the Loan Documents, including, without limitation, the costs and fees of the
Agent’s legal counsel, and all costs and expenses incurred by the Agent in connection with the
enforcement or preservation of any rights under the Credit Agreement, as amended hereby, or any
other Loan Documents, including, without, limitation, the costs and fees of the Agent’s legal
counsel.



     6.04 Severability. Any provision of this Amendment held by a court of competent
jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this
Amendment and the effect thereof shall be confined to the provision so held to be invalid or
unenforceable.



     6.05 Successors and Assigns. This Amendment is binding upon and shall inure to the
benefit of the Agent, the Lenders and Borrowers and their respective successors and assigns, except
that no Borrower may assign or transfer any of its rights or obligations hereunder without the
prior written consent of the Agent.



     6.06 Counterparts. This Amendment may be executed in one or more counterparts, each
of which when so executed shall be deemed to be an original, but all of which when taken together
shall constitute one and the same instrument.



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     6.07 Effect of Waiver. No consent or waiver, express or implied, by the Agent to or
for any breach of or deviation from any covenant or condition by any Borrower shall be deemed a
consent to or waiver of any other breach of the same or any other covenant, condition or duty.



     6.08 Headings. The headings, captions, and arrangements used in this Amendment are
for convenience only and shall not affect the interpretation of this Amendment.



     6.09 Applicable Law. THIS AMENDMENT AND ALL OTHER AGREEMENTS EXECUTED PURSUANT HERETO
SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN AND SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.



     6.10 Final Agreement. THE CREDIT AGREEMENT AND THE OTHER DOCUMENTS, EACH AS AMENDED
HEREBY, REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF ON
THE DATE THIS AMENDMENT IS EXECUTED. THE CREDIT AGREEMENT AND THE OTHER DOCUMENTS, AS AMENDED
HEREBY, MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS
OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. NO MODIFICATION,
RESCISSION, WAIVER, RELEASE OR AMENDMENT OF ANY PROVISION OF THIS AMENDMENT SHALL BE MADE, EXCEPT
BY A WRITTEN AGREEMENT SIGNED BY THE COMPANY AND THE AGENT.



     6.11 Release. EACH BORROWER HEREBY ACKNOWLEDGES THAT IT HAS NO DEFENSE, COUNTERCLAIM,
OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO
REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY ANY LOANS OR EXTENSIONS OF CREDIT
FROM AGENT OR ANY LENDER TO BORROWER UNDER THE CREDIT AGREEMENT OR THE OTHER DOCUMENTS OR TO SEEK
AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM THE AGENT OR ANY LENDER. EACH BORROWER
HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES THE AGENT OR ANY LENDER, ITS
PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS,
ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN,
ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW
OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED,
WHICH ANY BORROWER MAY NOW OR HEREAFTER HAVE AGAINST THE AGENT, ITS PREDECESSORS, AGENTS,
EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF
CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY LOANS OR
EXTENSIONS OF CREDIT FROM THE AGENT TO THE COMPANY UNDER THE CREDIT AGREEMENT OR THE OTHER
DOCUMENTS, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING,
COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE



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HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE CREDIT
AGREEMENT OR OTHER LOAN DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT.



[Remainder of Page Intentionally Blank; Signature Pages Follow.]




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     IN WITNESS WHEREOF, each of the parties hereto has executed this Amendment as of the date
first above-written.



	 	 	 	 	 	 	 
	 	 	Borrowers:	 	 
	 
	 	 	 	 	 	 
	 	 	HORIZON OFFSHORE, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ George G. Reuter	 	 
	 

	 	 	 	 

	 	 
	 	 	Name: George G. Reuter	 	 
	 	 	Title: Executive Vice President and Chief
Operating Officer	 	 
	 
	 	 	 	 	 	 
	 	 	HORIZON OFFSHORE CONTRACTORS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ George G. Reuter	 	 
	 

	 	 	 	 	 	 
	 	 	Name: George G. Reuter	 	 
	 	 	Title: Executive Vice President and Chief
Operating Officer	 	 
	 
	 	 	 	 	 	 
	 	 	HOC OFFSHORE, S. DE R.L. DE C.V.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David W. Sharp	 	 
	 

	 	 	 	 	 	 
	 	 	Name: David W. Sharp	 	 
	 	 	Title: Chairman	 	 
	 
	 	 	 	 	 	 
	 	 	HORIZON MARINE CONSTRUCTION LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ George G. Reuter	 	 
	 

	 	 	 	 	 	 
	 	 	Name: George G. Reuter	 	 
	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	HORIZON MARINE CONTRACTORS (MALAYSIA) SDN BHD	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David W. Sharp	 	 
	 

	 	 	 	 	 	 
	 	 	Name: David W. Sharp	 	 
	 	 	Title: Director	 	 






 









 






	 	 	 	 	 	 	 
	 	 	PT HORIZON OFFSHORE INDONESIA	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ George G. Reuter	 	 
	 

	 	 	 	 	 	 
	 	 	Name: George G. Reuter	 	 
	 	 	Title: Director	 	 
	 
	 	 	 	 	 	 
	 	 	HORIZON MARINE CONSTRUCTION (MAURITIUS) LTD.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ David W. Sharp	 	 
	 

	 	 	 	 	 	 
	 	 	Name: David W. Sharp	 	 
	 	 	Title: Director	 	 






 









 






	 	 	 	 	 	 	 
	 	 	Agent and Sole Lender:	 	 
	 
	 	 	 	 	 	 
	 	 	PNC BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert Reaser	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Robert Reaser	 	 
	 	 	Title: Vice President