Document:

Exhibit 10.5

 

AMENDMENT NO. 3 TO CREDIT AGREEMENT

      This Amendment No. 3 to Credit Agreement, dated as of September 19, 2012 (this "Third Amendment"), is entered into by CAL DIVE INTERNATIONAL, INC., a Delaware corporation (the "Borrower"), the lenders party to the Credit Agreement described below, and BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the "Administrative Agent"), Swing Line Lender and L/C Issuer.

INTRODUCTION

      Reference is made to the Credit Agreement dated as of April 26, 2011 (as amended by Amendment No. 1 dated October 7, 2011, Amendment No. 2 dated July 9, 2012, and as otherwise modified from time to time, the "Credit Agreement"), among the Borrower, the lenders from time to time party thereto (collectively, the "Lenders" and individually, a "Lender") and the Administrative Agent.

      The Borrower, the Lenders and the Administrative Agent have agreed to make certain amendments to the Credit Agreement as set forth herein.

      THEREFORE, in connection with the foregoing and for other good and valuable consideration, the Borrower, the Lenders, and the Administrative Agent hereby agree as follows:

      Section 1.                         Definitions; References.  Unless otherwise defined in this Third Amendment, each term used in this Third Amendment that is defined in the Credit Agreement has the meaning assigned to such term in the Credit Agreement.

      Section 2.                          Amendments to Credit Agreement.

      (a)            The definition of "Consolidated EBITDA" in Section 1.01 of the Credit Agreement is hereby amended by deleting subsection (vii) thereof and replacing it with the following:

 

(vii) severance costs incurred by the Borrower or its Subsidiaries in an amount equal to (A) $400,000 for the fiscal quarter ending March 31, 2011, (B) $600,000 for the fiscal quarter ending June 30, 2011, (C) $2,500,000 for the fiscal quarter ending September 30, 2011, (D) $300,000 for the fiscal quarter ending December 31, 2011, (E) for the fiscal quarter ending September 30, 2012, the lesser of actual severance costs for such fiscal quarter and $2,500,000, and (F) for the fiscal quarter ending December 31, 2012, the lesser of actual severance costs for such fiscal quarter and the difference of $2,500,000 minus all severance costs added back pursuant to the preceding subclause (E); provided that any severance costs added back in calculating Consolidated EBITDA pursuant to subclauses (E) and (F) above shall be added back only for purposes of calculating compliance with the Consolidated Fixed Charge Coverage Ratio and the Consolidated Leverage Ratio under Section 7.11(a) and (b) only, and not for any other purpose for which such ratios are used in this Agreement, and minus

      (b)            Section 7.03 of the Credit Agreement is hereby amended by deleting clause (k) thereof and replacing it with the following:

 

      (k)            Indebtedness in respect of (A) letters of credit, bank guarantees, surety bonds, performance bonds, warranty bonds, bid bonds and similar obligations, in each case, supporting international operations of the Borrower and its Subsidiaries, in an aggregate amount not to exceed $50,000,000 at any time outstanding and (B) surety bonds, performance bonds, warranty bonds, bid bonds and similar obligations, in each case, supporting obligations of the Borrower and its Subsidiaries under a project for an offshore wind farm on Horseshoe Shoal in Nantucket Sound off Cape Cod, Massachusetts in an aggregate amount not to exceed $50,000,000 at any time outstanding.

      (c)            Exhibit D (Form of Compliance Certificate) to the Credit Agreement is hereby deleted in its entirety and replaced with Exhibit D attached hereto.

      Section 3.                          Representations and Warranties.  The Borrower represents and warrants that (a) the execution, delivery, and performance of this Third Amendment by each Loan Party are within the corporate or equivalent power and authority of such Loan Party and have been duly authorized by all necessary corporate or other organizational action, (b) this Third Amendment and the Credit Agreement, as amended hereby, constitute legal, valid, and binding obligations of each Loan Party that is a party hereto or thereto, enforceable against such Loan Party in accordance with their terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws of general applicability affecting the enforcement of creditors' rights and the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or law); (c) the representations and warranties of the Borrower and each other Loan Party contained in the Credit Agreement, as amended hereby, and in each Loan Document are true and correct in all material respects as of the date of this Third Amendment, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they were true and correct in all material respects as of such earlier date; (d) no Default or Event of Default exists under the Loan Documents; and (e) the Liens under the Security Documents are valid and subsisting and secure the Obligations.

      Section 4.                          Effect on Loan Documents.  Except as amended hereby, the Credit Agreement and all other Loan Documents remain in full force and effect as originally executed.  Nothing herein shall act as a waiver of any of the Administrative Agent's or any Lender's rights under the Loan Documents as amended, including the waiver of any Default or Event of Default, however denominated.  The Borrower acknowledges and agrees that this Third Amendment shall in no manner impair or affect the validity or enforceability of the Credit Agreement.  This Third Amendment is a Loan Document for the purposes of the provisions of the other Loan Documents.  Without limiting the foregoing, any breach of representations, warranties, and covenants under this Third Amendment may be a Default or Event of Default under the other Loan Documents.

 

      Section 5.                          Effectiveness.  This Third Amendment shall become effective, and the Credit Agreement shall be amended as provided for herein, upon the satisfaction of the following conditions:

      (a)            the Administrative Agent (or its counsel) shall have received counterparts hereof duly executed and delivered by a duly authorized officer of the Borrower, each Subsidiary Guarantor, and by the Lenders whose consent is required to effect the amendments contemplated hereby; and

      (b)            the Administrative Agent shall have received, or shall concurrently receive (i) for the account of each Lender that has delivered an executed counterpart of this Third Amendment to the Administrative Agent by 5:00 p.m. (Central time) on September 19, 2012, a consent fee equal to 6 basis points on the amount of such executing Lender's Revolving Credit Commitment then in effect and aggregate outstanding Term Loans, and (ii) for the account of the applicable Person, payment of all other fees payable in connection with this Third Amendment.

      Section 6.                          Reaffirmation of Subsidiary Guaranty and Security Documents.  By its signature hereto, each Subsidiary Guarantor represents and warrants that (a) such Subsidiary Guarantor has no defense to the enforcement of the Subsidiary Guaranty, and that according to its terms the Subsidiary Guaranty will continue in full force and effect to guaranty the Borrower's obligations under the Credit Agreement and the other amounts described in the Subsidiary Guaranty following the execution of this Third Amendment and (b) the Liens created under the Security Documents to which such Subsidiary Guarantor is a party are valid and subsisting and will continue in full force and effect to secure the Borrower's obligations under the Credit Agreement and the other amounts described in such Security Documents following the execution of this Third Amendment.

      Section 7.                          Governing Law.  THIS THIRD AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

      Section 8.                          Miscellaneous.  The miscellaneous provisions set forth in Article X of the Credit Agreement apply to this Third Amendment.  This Third Amendment may be signed in any number of counterparts, each of which shall be an original, and may be executed and delivered electronically and by telecopier.

      Section 9.                          ENTIRE AGREEMENT.  THIS THIRD AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

[Signature pages follow.]

      EXECUTED as of the first date above written.

	
CAL DIVE INTERNATIONAL, INC.

 

	
By:

	
/s/ Brent Smith

	
Name:

	
Brent Smith

	
Title:

	
Vice President, CFO & Treasurer

	
 

	
CAL DIVE OFFSHORE CONTRACTORS, INC., a Delaware corporation

AFFILIATED MARINE CONTRACTORS, INC., a Delaware corporation

FLEET PIPELINE SERVICES, INC., a Delaware corporation

GULF OFFSHORE CONSTRUCTION, INC., a Delaware corporation

CDI RENEWABLES, LLC, a Delaware limited liability company

 

	
By:

	
/s/ Brent Smith

	
Name:

	
Brent Smith

	
Title:

	
Vice President, CFO & Treasurer

	
 

	
BANK OF AMERICA, N.A., as Administrative Agent

 

	
By:

	
/s/ DeWayne D. Rosse

	
Name:

	
DeWayne D. Rosse

	
Title:

	
Agency Management Officer

	
 

	
BANK OF AMERICA, N.A., as as a Lender, Swing Line Lender and L/C Issuer

 

	
By:

	
/s/ David Maiorella

	
Name:

	
David Maiorella

	
Title:

	
Senior Vice President

	
 

	
WELLS FARGO BANK, NATIONAL ASSOCIATION, as Co-Syndication Agent and Lender

 

	
By:

	
/s/ Robert Corder /s/

	
Name:

	
Robert Corder

	
Title:

	
Director

	
 

	
BNP PARIBAS, as Co-Syndication Agent and Lender

 

	
By:

	
/s/ Christine Blanc-Leonard

	
Name:

	
Christine Blanc-Leonard

	
Title:

	
Head of Transportation Group Middle Office

	
 

	
 

	
 

	
By:

	
/s/ Paul Barnes

	
Name:

	
Paul Barnes

	
Title:

	
MD

	
 

	
NATIXIS, as Co-Documentation Agent and Lender

 

	
By:

	
/s/ Mary Lou Allen

	
Name:

	
Mary Lou Allen

	
Title:

	
Director

	
 

	
By:

	
/s/ Tim Polvado

	
Name:

	
Tim Polvado

	
Title:

	
Senior Managing Director

	
 

	
THE BANK OF NOVA SCOTIA, as a Lender

 

	
By:

	
/s/ John Frazell

	
Name:

	
John Frazell

	
Title:

	
Director

	
 

	
SCOTIABANC INC., as a Lender

 

	
By:

	
/s/ J.F. Todd

	
Name:

	
J.F. Todd

	
Title:

	
Managing Director

	
 

	
CAPITAL ONE, N.A., as a Lender

 

	
By:

	
/s/ Don Backer

	
Name:

	
Don Backer

	
Title:

	
SVP

	
 

	
HSBC BANK USA, NATIONAL ASSOCIATION, as a Lender

 

	
By:

	
/s/ Peter Hart

	
Name:

	
Peter Hart

	
Title:

	
Vice President

	
 

	
COMPASS BANK, as a Lender

 

	
By:

	
/s/ Collis Sanders

	
Name:

	
Collis Sanders

	
Title:

	
Executive Vice President

EXHIBIT D

FORM OF COMPLIANCE CERTIFICATE

Financial Statement Date: __________________________ ,

To:            Bank of America, N.A., as Administrative Agent

          Ladies and Gentlemen:

          Reference is made to that certain Credit Agreement, dated as of April 26, 2011 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the "Agreement;" the terms defined therein being used herein as therein defined) among Cal Dive International, Inc., a Delaware corporation (the "Borrower"), the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent, L/C Issuer and Swing Line Lender.

          The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the  of the Borrower, and that, as such, he/she is authorized to execute and deliver this Certificate to the Administrative Agent on the behalf of the Borrower, and that:

[Use following paragraph 1 for fiscal year-end financial statements]

[Attached hereto as Schedule 1][Filed with the Borrower's Form 10-K for the year ended ___________, 20__ and delivered in accordance with Section 6.01 of the Agreement] are the year-end audited financial statements required by Section 6.01(a) of the Agreement for the fiscal year of the Borrower, ended as of the above date, together with the report and opinion of an independent certified public accountant required by such section.

[Use following paragraph 1 for fiscal quarter-end financial statements]

[Attached hereto as Schedule 1][Filed with the Borrower's  Form 10-Q for the quarter ended ___________, 20__ and delivered in accordance with Section 6.01 of the Agreement] are the unaudited financial statements required by Section 6.01(b) of the Agreement for the fiscal quarter of the Borrower, ended as of the above date.  Such financial statements fairly present the financial condition, results of operations and cash flows of the Borrower and its Subsidiaries in accordance with GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes.

The undersigned is familiar with the terms of the Agreement and has made, or has caused to be made under his/her supervision, a review of the transactions and condition (financial or otherwise) of the Borrower and its Subsidiaries during the accounting period covered by the attached financial statements with a view to determine whether during such fiscal period the Borrower performed and observed all its Obligations under the Loan Documents, and

[select one:]

          [to the best knowledge of the undersigned during such fiscal period, the Borrower performed and observed each covenant and condition of the Loan Documents applicable to it, and no Default has occurred and is continuing.]

--or--

          [to the best knowledge of the undersigned during such fiscal period, the following covenants or conditions have not been performed or observed and the following is a list of each such Default and its nature and status:]

The representations and warranties of the Borrower contained in Article V of the Agreement, and any representations and warranties of the Borrower that are contained in any document furnished at any time under or in connection with the Loan Documents, are true and correct in all material respects on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date, and except that for purposes of this Compliance Certificate, the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b) respectively, of Section 6.01 of the Agreement, including the statements in connection with which this Compliance Certificate is delivered.

          The financial covenant analyses and information set forth on Schedules 2 and 3 attached hereto are true and accurate on and as of the date of this Certificate.

IN WITNESS WHEREOF, the undersigned has executed this Certificate as of __________, ___________ .

	
CAL DIVE INTERNATIONAL, INC.

 

 

 

	
By:

	
 

	
Name:

	
 

	
Title:

	
 

	
For the Quarter/Year ended ___________________("Statement Date")

 

 

	
SCHEDULE 2

 

	
to the Compliance Certificate

($ in 000's)

 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
I.

	
Section 7.11(a) – Consolidated Fixed Charge Coverage Ratio.

	
 

	
 

	
 

	
A.

	
Consolidated EBITDA (including 3Q & 4Q 2012

permitted severance costs) for the relevant period

as shown on Schedule 3 hereto:(1)

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
B.

	
Consolidated EBITDA (including 3Q & 4Q 2012

permitted severance costs) for the relevant period

as shown on Schedule 3 hereto:

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
C.

	
Maintenance Capital Expenditures for such period:

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
D.

	
Cash Taxes paid during such period:

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
E.

	
Aggregate principal amount of all scheduled principal

payments or redemptions or similar acquisitions for value

of outstanding debt for borrowed money for such period:

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
F.

	
Scheduled interest payments for such period:

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
G.

	
Consolidated Fixed Charge Coverage Ratio(2)

(Line I.A – Line I.C – Line I.D)  ̧ (Line I.E + Line I.F):

	
 

	
___________ to 1.00

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
1Minimum Required for each fiscal quarter ending

September 30, 2012 and thereafter:

	
 

	
1.25 to 1.00

	
 

	
 

	
 

	
 

	
 

	
 

	
H.

	
Consolidated Fixed Charge Coverage Ratio(3)

(Line I.B – Line I.C – Line I.D)  ̧ (Line I.E + Line I.F):

	
 

	
___________ to 1.00

	
 

	
 

	
 

	
 

	
 

	
II.

	
Section 7.11(b) – Consolidated Leverage Ratio.

	
 

	
 

	
 

	
A.

	
Consolidated Funded Indebtedness at Statement DatE(4)

	
$

	
 

	
 

	
 

		
 

	
 

	
 

	
B.

	
Consolidated EBITDA (including 3Q & 4Q 2012

permitted severance costs)  for four consecutive fiscal

quarters ending on the Statement Date as set forth on

Schedule 3 hereto:

	
$

	
 

	
 

	
 

		
 

	
 

	
 

	
C.

	
Consolidated EBITDA (excluding 3Q & 4Q 2012

permitted severance costs) for four consecutive fiscal

quarters ending on the Statement Date as set forth on

Schedule 3 hereto:

	
$

	
 

	
 

	
 

		
 

	
 

	
 

	
D.

	
+/- adjustments to EBITDA for

Acquisitions/Material Dispositions:

	
$

	
 

	
 

	
 

		
 

	
 

	
 

	
E.

	
Consolidated Leverage Ratio(5)

(Line II.A)  ̧ (Line II.B +/- Line II.D):

	
 

	
___________ to 1.00

	
 

	
 

	
Maximum permitted(6)

On or prior to September 30, 2011:

	
 

	
4.25 to 1.00

	
 

	
 

		
 

	
 

	
 

	
 

	
On December 31, 2011

	
 

	
5.00 to 1.00

	
 

	
 

		
 

	
 

	
 

	
 

	
On September 30, 2012

	
 

	
4.25 to 1.00

	
 

	
 

		
 

	
 

	
 

	
 

	
On December 31, 2012

	
 

	
4.00 to 1.00

	
 

	
 

		
 

	
 

	
 

	
 

	
Thereafter:

	
 

	
3.75 to 1.00

	
 

	
 

	
 

	
 

	
 

	
 

	
F.

	
Consolidated Leverage Ratio(7)

	
$

	
 

	
 

	
 

		
 

	
 

	
 

	
 

	
(Line II.A)  ̧ (Line II.C +/- Line II.D):

	
 

	
___________ to 1.00

	
 

	
 

	
 

	
 

	
III.

	
Section 7.11(c) – Minimum Consolidated EBITDA.(8)

	
 

	
 

	
 

	
A.

	
Consolidated EBITDA for four consecutive fiscal quarters

ending on March 31, 2012 as shown on Schedule 3 hereto:

	
$

	
 

	
 

	
 

		
 

	
 

	
 

	
 

	
Minimum Required:

	
 

	
$25,200,000

	
 

	
 

		
 

	
 

	
 

	
B.

	
Consolidated Funded Indebtedness at March 31, 2012:

	
$

	
 

	
 

	
 

		
 

	
 

	
 

	
C.

	
Consolidated EBITDA for four consecutive fiscal quarters

ending on March 31, 2012 as shown on Schedule 3 hereto:

	
$

	
 

	
 

	
 

		
 

	
 

	
 

	
D.

	
+/- adjustments to EBITDA for

Acquisitions/Material Dispositions:

	
$

	
 

	
 

	
 

		
 

	
 

	
 

	
E.

	
Consolidated Leverage Ratio

(Line III.B)  ̧ (Line III.C +/- Line III.D):

	
 

	
___________ to 1.00

	
 

	
 

		
 

	
 

	
 

	
 

	
Maximum Permitted(9)

	
 

	
5.00 to 1.00

	
 

	
 

		
 

	
 

	
IV.

	
Section 7.11(b) – Consolidated Leverage Ratio.

	
 

	
 

	
 

	
A.

	
80% of the net orderly liquidation value of each

Mortgaged Vessel (per the most recent appraisal):

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
B.

	
80% of accounts receivable as of the A/R Determination

Date immediately preceding the Statement Date:

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
C.

	
Outstanding Amount of Term Loans as of Statement Date:

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
D.

	
Outstanding Amount of Revolving Credit Loans

as of Statement Date:

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
E.

	
Outstanding Amount of Swing Line Loans

as of Statement Date:

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
F.

	
Outstanding Amount of L/C Obligations

as of Statement Date:

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
G.

	
Aggregate Outstanding Amount

(Line IV.D + Line IV.E + Line IV.F):

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Maximum Permitted

(Line IV.A + Line IV.B – Line IV.C):

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
V.

	
Section 7.12 -- Capital Expenditures.

	
 

	
 

	
 

	
A.

	
Capital Expenditures made during fiscal year to date(10)

	
$

	
   

	
 

	
 

	
 

	
 

	
 

	
 

	
B.

	
Maximum permitted Capital Expenditures

during the fiscal year ending 2011:

	
$

	
65,000,000(11)

	
 

	
 

	
 

	
 

	
 

	
 

	
C.

	
Maximum permitted Capital Expenditures

during each fiscal year thereafter:

	
$

	
50,000,000(12)

	
 

	
 

	
 

	
$

	
200,000,000(13)

	
 

	
 

	
 

	
 

	
 

	
 

	
D.

	
Amount permitted to be carried over

from prior year: (14)

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
E.

	
Excess (deficit) for covenant compliance

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
For the fiscal year ending 2011

(Line V.B – V.A):

	
$

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
For each fiscal year thereafter

(Line V.C +Line V.D – V.A):

	
$

	
 

	
 

	
 

	
 

	
 

	
 

 

	
 

	
 

	
__________

	
1.

	
For purposes of calculating the Consolidated Fixed Charge Coverage Ratio for (A) the fiscal quarter ending September 30, 2012, the relevant calculation period shall be the sixth month period ending on such date, (B) the fiscal quarter ending December 31, 2012, the relevant calculation period shall be the nine month period ending on such date, and (C) any fiscal quarter ending thereafter, the relevant calculation period shall be the twelve month period ending on such date.

 

	
2.

	
This calculation is to be used only for purposes of calculating compliance under Section 7.11(a) of the Agreement.

 

	
3.

	
This calculation is to be used for all purposes other than calculating compliance under Section 7.11(a) of the Agreement, including without limitation determining achievement of the Financial Covenant Compliance Date.

 

	
4.

	
For purposes of determining "Consolidated Funded Indebtedness", the outstanding principal amount of any Qualified Convertible Indebtedness and Refinanced Qualified Convertible Indebtedness on such date shall be excluded from such determination.

 

	
5.

	
This calculation is to be used only for purposes of calculating compliance under Section 7.11(b) of the Agreement.

 

	
6.

	
From and including January 1, 2012 through and including June 30, 2012, no maximum Consolidated Leverage Ratio shall be required except to the extent described in Line III.E.

 

	
7.

	
This calculation is to be used for all purposes other than calculating compliance under Section 7.11(b) of the Agreement, including without limitation determination of the Applicable Margin, achievement of the Financial Covenant Compliance Date, and pro forma calculations in connection with Acquisitions pursuant to Section 7.02(h) of the Agreement.

 

	
8.

	
Required only for the fiscal quarter ending on March 31, 2012.

 

	
9.

	
Required only if test in Line III.A is not satisfied.

 

	
10.

	
Line V.A excludes all Capital Expenditures made during fiscal year to date for assets acquired, constructed, improved, enlarged, developed, re-constructed or repaired with proceeds from a Recovery Event or Asset Disposition within 365 days after the receipt of the applicable Net Cash Proceeds in accordance with the Agreement, to the extent of such proceeds.  Line V.A also excludes all Maintenance Capital Expenditures for the fiscal year ending December 31, 2011 and each fiscal year thereafter prior to the fiscal year in which the Financial Covenant Compliance Date occurs.

 

	
11.

	
For any fiscal year prior to the fiscal year in which the Financial Covenant Compliance Date occurs and excluding Maintenance Capital Expenditures.

 

	
12.

	
For any fiscal year prior to the fiscal year in which the Financial Covenant Compliance Date occurs and excluding Maintenance Capital Expenditures.

 

	
13.

	
For the fiscal year in which the Financial Covenant Compliance Date occurs and each fiscal year thereafter and including Maintenance Capital Expenditures.

 

	
14.

	
Carry-forward permitted only for fiscal years occurring after the fiscal year in which the Financial Covenant Compliance Date occurs.

 

Exhibit D to Credit Agreement

For the Quarter/Year ended ___________________("Statement Date")

 

SCHEDULE 3

to the Compliance Certificate

($ in 000's)

Consolidated EBITDA

(in accordance with the definition of Consolidated EBITDA

as set forth in the Agreement)

 

	

	
Consolidated

EBITDA

	

Quarter

Ended

__________

 

	

Quarter

Ended

__________

	

Quarter

Ended

__________

	

Quarter

Ended

__________

	
Twelve

Months

Ended

__________

	

	
Consolidated

Net Income

 

	
 

	
 

	
 

	
 

	
 

	

	
+ Consolidated Interest Charges

 

	
 

	
 

	
 

	
 

	
 

	

	
+ income taxes

 

	
 

	
 

	
 

	
 

	
 

	

	
+ depreciation expense

 

	
 

	
 

	
 

	
 

	
 

	

	
+ amortization expense

 

	
 

	
 

	
 

	
 

	
 

	

	
+ non-recurring non-cash charges or losses(15)

 

	
 

	
 

	
 

	
 

	
 

	

	
+ non-capitalized transaction costs of Transaction

 

	
 

	
 

	
 

	
 

	
 

	

	
+ non-cash stock-based compensation

 

	
 

	
 

	
 

	
 

	
 

	

	
+ permitted severance 

costs(16)

 

	
 

	
 

	
 

	
 

	
 

	

	
+ 3Q & 4Q 2012 permitted severance costs(17)

 

	
 

	
 

	
 

	
 

	
 

	

	
- non-recurring non-cash 

items(18)

 

	
 

	
 

	
 

	
 

	
 

	

	
- net income from non Subsidiaries (to extent included in Consolidated Net Income)

 

	
 

	
 

	
 

	
 

	
 

	

	
+ cash dividends and distributions from non Subsidiaries

 

	
 

	
 

	
 

	
 

	
 

	

	
+/- adjustments to EBITDA for non Wholly Owned Subsidiaries

 

	
 

	
 

	
 

	
 

	
 

	

	
= Consolidated EBITDA (including 3Q & 4Q 2012 permitted severance costs)

 

	
 

	
 

	
 

	
 

	
 

	

	
= Consolidated EBITDA (excluding 3Q & 4Q 2012 permitted severance costs)

 

	
 

	
 

	
 

	
 

	
 

 

	
__________

 

	
15.

	
Excluding, for any fiscal quarter ending on or after September 30, 2011, any charges or losses (whether cash or non-cash) resulting from the Disposition of any asset of the Borrower or any Subsidiary.

 

	
16.

	
Permitted severance costs include: $400,000 for the fiscal quarter ending March 31, 2011, $600,000 for the fiscal quarter ending June 30, 2011, $2,500,000 for the fiscal quarter ending September 30, 2011 and $300,000 for the fiscal quarter ending December 31, 2011.

 

	
17.

	
3Q & 4Q 2012 permitted severance costs are to be added back in calculating Consolidated EBITDA only for purposes of calculating compliance with Section 7.11(a) and (b) of the Agreement, and include: (1) for the fiscal quarter ending September 30, 2012, the lesser of actual severance costs for such fiscal quarter and $2,500,000, and (2) for the fiscal quarter ending December 31, 2012, the lesser of actual severance costs for such fiscal quarter and the difference of $2,500,000 minus all severance costs added back pursuant to the preceding clause (1).

 

	
18.

	
Excluding, for any fiscal quarter ending on or after September 30, 2011, any items (whether cash or non-cash) resulting from the Disposition of any asset of the Borrower or any Subsidiary.

 

Exhibit D to Credit AgreementExhibit 10.11

FIRST AMENDMENT TO CREDIT AGREEMENT

This FIRST AMENDMENT TO CREDIT AGREEMENT (this "Amendment") is dated as of  December 31, 2013 and entered into by and among CAL DIVE INTERNATIONAL, INC., a Delaware corporation ("CDII"), CAL DIVE OFFSHORE CONTRACTORS, INC., a Delaware corporation ("CDOCI"), AFFILIATED MARINE CONTRACTORS, INC., a Delaware corporation ("AMCI"), FLEET PIPELINE SERVICES, INC., a Delaware corporation ("FPSI"), GULF OFFSHORE CONSTRUCTION, INC., a Delaware corporation ("GOCI") and CDI RENEWABLES, LLC, a Delaware limited liability company ("CRL" and, together with CDII, CDOCI, AMCI, FPSI and GOCI, collectively, the "Borrower"), the lenders party hereto and ABC FUNDING, LLC, a Delaware limited liability company, as Administrative Agent (the "Administrative Agent"), and is made with reference to that certain Credit Agreement, dated as of June 27, 2013 (as amended, supplemented or otherwise modified prior to the date hereof, the "Credit Agreement"), by and among the Borrower, the Lenders (as defined in therein), and the Administrative Agent.  Capitalized terms used herein without definition shall have the same meanings herein as set forth in the Credit Agreement.

RECITALS:

WHEREAS, the Borrower has requested that the 2014 Loan Maturity Date under the Credit Agreement be extended from January 2, 2014 to April 30, 2014, subject to certain conditions subsequent and as otherwise set forth herein; and

WHEREAS, the Lenders have agreed to such amendment requested by the Borrower on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants herein contained, the parties hereto agree as follows:

Section 1.                          AMENDMENT

 

In accordance with Section 9.01 of the Credit Agreement, upon the occurrence of the Amendment Effective Date (as defined in Section 2 hereof), the Credit Agreement is amended as follows:

1.  The definition of "2014 Loan Maturity Date" is amended and restated in its entirety to read as follows:

""2014 Loan Maturity Date" means the earlier of (x) April 30, 2014 and (y) the first date of an occurrence of an Event of Default."

2. Section 1.01 of the Credit Agreement is hereby amended by adding the following new definitions in appropriate alphabetical order:

""First Amendment" means that certain First Amendment to Credit Agreement, dated as of December 31, 2013 by and among the Borrower, the Lenders and the Administrative Agent."

"First Amendment Effective Date" means the "Amendment Effective Date" of the First Amendment."

Section 2.                          CONDITIONS TO EFFECTIVENESS

 

This Amendment shall become effective as of the date first set forth above subject to the satisfaction (or waiver by each Lender) of each of the following conditions (the date of such satisfaction or waiver of such conditions being referred to herein as the "Amendment Effective Date"):

(a)            the Borrower, the Lenders and the Administrative Agent shall have signed and returned a counterpart hereof (whether the same or different counterparts); and

 

(b)            the Borrower shall have signed and returned a counterpart of the separate fee letter  (the "Fee Letter"), dated the date hereof, by and among the parties hereto.

 

Section 3.                          BORROWER'S REPRESENTATIONS

 

(a)            Representations.  The representations and warranties of each Loan Party contained in Article V of the Credit Agreement and in any other Loan Document are true and correct in all material respects on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct in all material respects as of such earlier date, and except that for purposes of this Section 3(a), the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement.

 

(b)            No Default.  As of the date hereof and immediately after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing.

 

(c)            Power and Authority; Enforceability.  Each Loan Party has all requisite corporate or equivalent power and authority to execute, deliver and perform its obligations under this Amendment.  The execution, delivery and performance by each Loan Party of this Amendment has been duly authorized by all necessary corporate or equivalent action; and this Amendment has been duly executed and delivered by each Loan Party and constitutes a legal, valid and binding obligation of each Loan Party, enforceable against each Loan Party in accordance with its terms, except as such enforcement may be limited by Debtor Relief Laws and similar Laws affecting creditors' rights generally or providing relief for debtors and subject to general principles of equity.

 

Section 4.                          MISCELLANEOUS

 

(a)            Fees and Expenses.  Except as otherwise specifically provided in the Fee Letter, on or prior to January 14, 2014, the Borrower shall pay or otherwise reimburse the Lenders and the Administrative Agent for all of their fees and expenses, including, without limitation, reasonable fees and expenses of counsel, incurred in connection with the negotiation and documentation of this Amendment.

 

(b)            Loan Document.  This Amendment is a Loan Document.  All references in the Credit Agreement, in any of the other Loan Documents and in any other document or instrument incidental hereto or thereto shall, on and after the Amendment Effective Date, be deemed to mean and refer to the Credit Agreement, as amended pursuant to this Amendment.

 

(c)            Affirmation and Confirmation.  Each Loan Party, by its signature below, hereby ratifies the Credit Agreement as amended by this Amendment and (i) agrees that, notwithstanding the effectiveness of this Amendment, the Credit Agreement and the Security Documents continue to be in full force and effect (except, in the case of the Credit Agreement, to the extent expressly amended hereby), and such party remains bound by all terms of the Credit Agreement applicable to it as amended by this Amendment, and (ii) affirms and confirms (x) its obligations under each of the Loan Documents to which it is a party and (y) the pledge of and/or grant of a security interest (upon the occurrence of the Lien Trigger Date and if permitted by Section 6.17 of the Credit Agreement) in its assets as Collateral to secure such Obligations, all as provided in the Loan Documents as originally executed, and acknowledges and agrees that such pledge and/or grant (upon the occurrence of the Lien Trigger Date and if permitted by Section 6.17 of the Credit Agreement) continues in full force and effect in respect of, and to secure, such Obligations under the Credit Agreement (as amended hereby) and the other Loan Documents.

 

(d)            Limited Amendment.  The execution, delivery and performance of this Amendment shall not, except as expressly provided herein, constitute an amendment of any provision of, or operate as an amendment of any right, power or remedy of Administrative Agent or any Lender under, the Credit Agreement or any of the other Loan Documents.  This Amendment shall not establish a custom or waive, limit or condition the rights and remedies of any Lender under the Loan Documents, all of which rights and remedies are expressly reserved.

 

(e)            No Actions, Claims, Etc.  As of the date hereof, the Borrower acknowledges and confirms that it has no knowledge of any actions, causes of action, claims, demands, damages or liabilities of whatever kind or nature, in law or in equity, against the Administrative Agent, the Lenders or the Administrative Agent's or any Lender's respective officers, employees, representatives, agents, counsel or directors arising from any action by such Persons, or failure of such Persons to act under the Credit Agreement on or prior to the date hereof.

 

(f)            General Release.  In consideration of the Administrative Agent's and the Lenders' willingness to enter into this Amendment, each Loan Party hereby releases and forever discharges the Administrative Agent, the Lenders and each of the Administrative Agent's and each Lender's respective predecessors, successors, assigns, officers, managers, directors, employees, agents, attorneys, representatives and affiliates (all of the above, collectively, the "Lender Group"), from any and all claims, counterclaims, demands, damages, debts, suits, liabilities, actions and causes of action of any nature whatsoever, including, without limitation, all claims, demands and causes of action for contribution and indemnity, whether arising at law or in equity, whether known or unknown, whether liability be direct or indirect, liquidated or unliquidated, whether absolute or contingent, foreseen or unforeseen, and whether or not heretofore asserted (all of the above, collectively, "Claims") that existed, arose or occurred at any time from the beginning of the world to the date of execution of this Amendment, which any Loan Party may have or claim to have against any of the Lender Group in any way related to or connected with the Loan Documents and the transactions contemplated thereby, except to the extent that any such Claim is determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of the Lender Group.

 

(g)            Further Assurances.  The Borrower agrees promptly to take such action, upon the request of any Lender or the Administrative Agent, as is necessary to carry out the intent of this Amendment.

 

(h)            Entire Agreement.  This Amendment and the other Loan Documents represent the final agreement among the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.  There are no unwritten oral agreements among the parties

 

(i)            Headings.  Section headings herein are included for convenience of reference only and shall not affect the interpretation of this Amendment.

 

(j)            GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

(k)            Consent to Jurisdiction; Service of Process; Waiver of Jury Trial.  The jurisdiction, service of process and waiver of jury trial provisions set forth in Section 9.14(b), (c) and (d) and Section 9.15 of the Credit Agreement are incorporated by reference herein, mutatis mutandis.

 

(l)            Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document.  Any party delivering an executed counterpart of this Amendment by telefacsimile or electronic mail also shall deliver an original executed counterpart of this Amendment but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.

 

[Remainder of page intentionally left blank]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first above written.

	
CAL DIVE INTERNATIONAL, INC.

 

	
By:

	
/s/ Brent Smith

	
Name:

	
Brent Smith

	
Title:

	
Vice President, CFO & Treasurer

	
 

	
CAL DIVE OFFSHORE CONTRACTORS, INC., a Delaware corporation

 

	
By:

	
/s/ Brent Smith

	
Name:

	
Brent Smith

	
Title:

	
Vice President, CFO & Treasurer

	
 

	
AFFILIATED MARINE CONTRACTORS, INC., a Delaware corporation

 

	
By:

	
/s/ Brent Smith

	
Name:

	
Brent Smith

	
Title:

	
Vice President, CFO & Treasurer

	
 

	
FLEET PIPELINE SERVICES, INC., a Delaware corporation

 

	
By:

	
/s/ Brent Smith

	
Name:

	
Brent Smith

	
Title:

	
Vice President, CFO & Treasurer

	
 

	
GULF OFFSHORE CONSTRUCTION, INC., a Delaware corporation

 

	
By:

	
/s/ Brent Smith

	
Name:

	
Brent Smith

	
Title:

	
Vice President, CFO & Treasurer

	
 

	
CDI RENEWABLES, LLC, a Delaware limited liability company

 

	
By:

	
/s/ Brent Smith

	
Name:

	
Brent Smith

	
Title:

	
Vice President, CFO & Treasurer

	
 

	
 

	
 

	
LENDERS:

 

SUMMIT PARTNERS CREDIT FUND, L.P.,

as a Lender

 

	
By:

	
Summit Partners Credit GP, L.P.

	
Its:

	
General Partner

	
 

	
 

	
By:

	
/s/ James Freeland

	
Name:

	
James Freeland

 

	
Title:

	
Authorized Signatory

	
 

	
SUMMIT PARTNERS CREDIT FUND A-1, L.P.,

as a Lender

	
By:

	
Summit Partners Credit A-1 GP, L.P.

	
Its:

	
General Partner

	
 

	
 

	
By:

	
/s/James Freeland

	
Name:

	
James Freeland

	
Title:

	
Authorized Signatory

	
 

	
SUMMIT PARTNERS CREDIT FUND A-1, L.P.,

as a Lender

	
By:

	
Summit Partners Credit A-1 GP, L.P.

	
Its:

	
General Partner

	
 

	
 

	
By:

	
/s/James Freeland

	
Name:

	
James Freeland

	
Title:

	
Authorized Signatory

	
 

	
SUMMIT PARTNERS CREDIT OFFSHORE INTERMEDIATE FUND, L.P.,

as a Lender

	
By:

	
Summit Partners Credit GP, L.P.

	
Its:

	
General Partner

	
 

	
 

	
By:

	
/s/James Freeland

	
Name:

	
James Freeland

	
Title:

	
Authorized Signatory

	
 

	
SUMMIT INVESTORS I, LLC,

as a Lender

	
By:

	
Summit Investors Management, LLC

	
Its:

	
Manager

	
 

	
 

	
By:

	
Summit Partners, L.P.

	
Its:

	
Manager

	
 

	
 

	
By:

	
Summit Master Company, LLC

	
Its:

	
General Partner

	
 

	
 

	
By:

	
/s/James Freeland

	
Name:

	
James Freeland

	
Title:

	
Authorized Signatory

	
 

	
SUMMIT INVESTORS I (UK), L.P.,

as a Lender

	
By:

	
Summit Investors Management, LLC

	
Its:

	
General Partner

	
 

	
 

	
By:

	
Summit Partners, L.P.

	
Its:

	
Manager

	
 

	
 

	
By:

	
Summit Master Company, LLC

	
Its:

	
General Partner

	
 

	
 

	
By:

	
/s/James Freeland

	
Name:

	
James Freeland

	
Title:

	
Authorized Signatory

	
 

Signature Page to First Amendment to Credit Agreement

	
Acknowledged and agreed:

 

ADMINISTRATIVE AGENT:

 

ABC FUNDING, LLC,

as Administrative Agent

 

	
By:

	
Summit Partners Credit Advisors, L.P.

	
Its:

	
Manager

	
 

	
 

	
By:

	
Summit Master Company, LLC

	
Its:

	
General Partner

	
 

	
 

	
By:

	
/s/ James Freeland

	
Name:

	
James Freeland

	
Title:

	
Authorized Signatory

	
 

Signature Page to First Amendment to Credit Agreement

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