Document:

Second Amendment to Credit Agreement

 Exhibit 10.1 
  
 SECOND AMENDMENT TO CREDIT AGREEMENT 
  
 THIS SECOND AMENDMENT TO CREDIT AGREEMENT, dated as of October 14, 2005 (this “Second
Amendment”), is by and among NCI BUILDING SYSTEMS, INC., a Delaware corporation (the “Borrower”), certain Subsidiaries of the Borrower party hereto (the “Guarantors”), the Lenders party hereto and
WACHOVIA BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders (in such capacity, the “Administrative Agent”). 
  
 W I T N E S S E T H 
  
 WHEREAS, the Borrower, the Guarantors, the Administrative Agent and the Lenders are parties to that certain Credit Agreement dated as of
June 18, 2004 (as previously amended and modified and as further amended, modified, supplemented or restated from time to time, the “Credit Agreement”; capitalized terms used herein shall have the meanings ascribed thereto in
the Credit Agreement unless otherwise defined herein); and 
  
 WHEREAS, the Credit Parties have requested certain amendments to the Credit Agreement and the Lenders have agreed to such amendments, subject to the terms hereof. 
  
 NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
  
 SECTION 1 
  
 AMENDMENTS 
  
 1.1 Amendment to
Definition of Applicable Percentage. The pricing grid in the definition of “Applicable Percentage” set forth in Section 1.1 of the Credit Agreement is hereby amended and replaced in its entirety by the following pricing grid:

																		
	Level

	 	 Leverage
 Ratio

	 	LIBOR
Rate
Margin for
Revolving
Loans and
Letter of
Credit Fee

	 	 	Alternate
Base Rate
Margin for
Revolving
Loans

	 	 	LIBOR
Rate
Margin for
Tranche B
Term Loans

	 	 	Alternate
Base Rate
Margin for
Tranche B
Term Loans

	 	 	 Commitment
 Fee

	 
	I	 	< 2.00 to 1.0	 	1.25	%	 	0.25	%	 	1.50	%	 	0.50	%	 	0.25	%
	II	 	> 2.00 to 1.0
but < 2.50 to
1.0	 	1.50	%	 	0.50	%	 	1.50	%	 	0.50	%	 	0.375	%
	III	 	> 2.50 to 1.0
but < 3.00 to
1.0	 	1.75	%	 	0.75	%	 	1.50	%	 	0.50	%	 	0.375	%
	IV	 	> 3.00 to 1.0
but < 3.50 to
1.0	 	2.00	%	 	1.00	%	 	1.50	%	 	0.50	%	 	0.50	%
	V	 	> 3.50 to 1.0	 	2.25	%	 	1.25	%	 	1.50	%	 	0.50	%	 	0.50	%

  
 1.2 Amendment to
Definition of Cash Equivalents. The definition of “Cash Equivalents” set forth in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 
  
 “Cash Equivalents” shall mean
(i) securities issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof (provided that the full faith and credit of the United States of America is pledged in support thereof)
having maturities of not more than twelve months from the date of acquisition (“Government Obligations”), (ii) U.S. dollar denominated (or foreign currency fully hedged to U.S. dollar) time deposits, certificates of deposit,
Eurodollar time deposits and Eurodollar certificates of deposit of (y) any domestic commercial bank of recognized standing having capital and surplus in excess of $250,000,000 or (z) any bank whose short-term commercial paper rating from
S&P is at least A-1 or the equivalent thereof or from Moody’s is at least P-1 or the equivalent thereof (any such bank being an “Approved Bank”), in each case with maturities of not more than 364 days from the date of
acquisition, (iii) commercial paper and variable or fixed rate notes issued by any Approved Bank (or by the parent company thereof) or any variable rate notes issued by, or guaranteed by any domestic corporation rated A-1 (or the equivalent
thereof) or better by S&P or P-1 (or the equivalent thereof) or better by Moody’s and maturing within six months of the date of acquisition, (iv) repurchase agreements with a bank or trust company (including a Lender) or a recognized
securities dealer having capital and surplus in excess of $250,000,000 for direct obligations issued by or fully guaranteed by the United States of America, (v) obligations of any State of the United States or any political subdivision thereof
for the payment of the principal and 

  

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redemption price of and interest on which there shall have been irrevocably deposited Government Obligations maturing as to principal and interest at
times and in amounts sufficient to provide such payment, (vi) auction preferred stock rated in the highest short-term credit rating category by S&P or Moody’s, (vii) readily marketable tax-free municipal bonds of a domestic issuer
rated Aaa by Moody’s, or AAA by S&P, and maturing within one year from the date of issuance (and investments in mutual funds investing primarily in those bonds), (viii) demand deposit accounts maintained in the ordinary course of
business and (ix) money market accounts containing cash and Investments in the items set forth in clauses (i)-(viii) above. 
  
 1.3 Amendment to Section 2.8(b)(iv). Section 2.8(b)(iv) of the Credit Agreement is hereby amended and restated in its entirety to
read as follows:  
  
 (iv) Debt
Issuances. Immediately upon receipt by any Credit Party or any of its Subsidiaries of proceeds from any Debt Issuance other than the Senior Subordinated Convertible Notes, the Borrower shall prepay the Loans and/or cash collateralize the LOC
Obligations in an aggregate amount equal to 100% of the Net Cash Proceeds of such Debt Issuance (such prepayment to be applied as set forth in clause (vii) below); provided, however, that such Net Cash Proceeds shall not be
required to be so applied to the extent the Borrower delivers to the Administrative Agent a certificate stating that it intends to use such Net Cash Proceeds to finance a Permitted Acquisition within 90 days of the receipt of such Net Cash Proceeds
(provided that such 90 day period shall be extended to a total of 180 days from the date of receipt of such Net Cash Proceeds if (A) during such 90 day period any Credit Party enters into a definitive purchase agreement or binding letter
of intent with respect to a Permitted Acquisition and (B) the Leverage Ratio as of the most recent fiscal quarter ended prior to such Debt Issuance is less than 3.0 to 1.0), it being expressly agreed that any Net Cash Proceeds not used in
connection with a Permitted Acquisition within such applicable period (or used to repay Revolving Loans used to finance Permitted Acquisitions) shall be applied to repay the Loans and/or cash collateralize the LOC Obligations immediately following
the end of such applicable period. 
  
 1.4 Amendment to
Section 2.10(a). Section 2.10(a) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:  
  
 (a) The Borrower may, in the case of the Revolving Loans and the Tranche B Term Loan, elect from time to time to convert Alternate
Base Rate Loans to LIBOR Rate Loans by giving the Administrative Agent at least three Business Days’ prior irrevocable written notice of such election. In addition, the Borrower may elect from time to time to convert LIBOR Rate Loans to
Alternate Base Rate Loans by giving the Administrative Agent irrevocable written notice by 11:00 A.M. one Business Date prior to the proposed date of conversion. A form of Notice of Conversion is attached as Schedule 2.10. If the date upon
which an Alternate Base Rate Loan is to be converted to a LIBOR Rate Loan is not a Business Day, then such conversion shall be made on the next succeeding Business Day. All or any part of outstanding Alternate Base Rate Loans may be converted as

  

 3 

 
provided herein; provided that (i) no Loan may be converted into a LIBOR Rate Loan when any Default or Event of Default has occurred and is
continuing and (ii) partial conversions shall be in an aggregate principal amount of $5,000,000 or a whole multiple of $500,000 in excess thereof. LIBOR Rate Loans may only be converted to alternate Base Rate Loans on the last day of the
applicable Interest Period. If the date upon which a LIBOR Rate Loan is to be converted to an Alternate Base Rate Loan is not a Business Day, then such conversion shall be made on the next succeeding Business Day and during the period from such last
day of an Interest Period to such succeeding Business Day such Loan shall bear interest as if it were an Alternate Base Rate Loan. 
  
 1.5 Amendment to Section 5.9(b). Section 5.9(b) of the Credit Agreement is hereby amended and restated in its entirety to read as
follows:  
  
 (b) Senior Leverage
Ratio. At all times, the Senior Leverage Ratio during the following periods shall be less than or equal to: 
  

			
	 Period

	  	 Maximum Ratio

	 Closing Date through April 30, 2005
	  	3.50 to 1.0
	 May 1, 2005 through October 14, 2005
	  	3.25 to 1.0
	 October 15, 2005 through April 30, 2008
	  	3.00 to 1.0
	 May 1, 2008 and thereafter
	  	2.75 to 1.0

  
 1.6 Amendment to
Section 6.11. Section 6.11 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:  
  
 Section 6.11 Restricted Payments. 
  
 Declare, order, make or set apart any sum for or pay any Restricted Payment, except (a) to make dividends payable solely in the
same class of Capital Stock of such Person, (b) to make dividends or other distributions payable to the Borrower or a Domestic Subsidiary, (c) the Borrower may repurchase shares of its Capital Stock in respect of employee benefit plans and
stock options in an aggregate amount not to exceed $5,000,000 during any fiscal year, (d) so long as no Default or Event of Default shall have occurred and be continuing or would result therefrom, the Borrower may make regularly scheduled
payments of interest in respect of Subordinated Indebtedness (including, without limitation, the Senior Subordinated Convertible Notes and the Additional Amount), (e) so long as no Default or Event of Default shall have occurred and be
continuing and the Borrower demonstrates pro forma compliance with the financial covenants set forth in Section 5.9, the Borrower may repurchase shares of its Capital Stock and/or pay cash dividends in an aggregate amount during the term of
this Credit Agreement not to exceed $35,000,000 plus 25% of Consolidated Net Income since the Closing Date, (f) so long as no Default or Event of Default shall have occurred and be continuing or would result therefrom, the Borrower may make
cash payments on the Senior Subordinated Convertible Notes as may be required pursuant to the terms thereof 

  

 4 

 
upon the conversion for cash at the option of the holders of the Senior Subordinated Convertible Notes and (g) so long as no Default or Event of
Default shall have occurred and be continuing or would result therefrom, the Borrower may repurchase the Senior Subordinated Convertible Notes on or after November 15, 2009 if required to do so by the holders thereof; provided that the
payments referred to in clauses (f) and (g) shall be permitted only to the extent the Borrower can demonstrate (i) (A) that the Senior Leverage Ratio is less than (x) with respect to payments made on or prior to
April 30, 2008, 3.00 to 1.0 and (y) with respect to payments made after April 30, 2008, 2.75 to 1.00, in each case on a pro forma basis after giving effect to such payment and (B) Availability of at least $25,000,000 after giving
effect to such payment or (ii) that the Senior Leverage Ratio is less than 1.0 to 1.0. 
  
 SECTION 2 
  
 CLOSING CONDITIONS 
  

	 	2.1	Closing Conditions. 

  
 This Second Amendment shall become effective at such time as the following conditions shall have been satisfied (in form and substance reasonably
acceptable to the Administrative Agent): 
  
 (a)
Executed Amendment. Receipt by the Administrative Agent of a copy of this Second Amendment duly executed by each of the Credit Parties and the Lenders. 
  

(b) Corporate Documents. The Administrative Agent shall have received the following: 
  
 (i) Resolutions. Copies of resolutions of the Board
of Directors or other comparable governing body of each Credit Party approving and adopting this Second Amendment, the transactions contemplated herein and authorizing execution and delivery hereof, certified by an officer, general partner, manager,
secretary or assistant secretary of such Credit Party to be true and correct and in force and effect as of the date hereof; and 
  
 (ii) Incumbency. An incumbency certificate of each Credit Party certified by a secretary or assistant secretary to be true and
correct as of the date hereof. 
  

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 SECTION 3 
  
 MISCELLANEOUS 
  
 3.1 Amended Terms. The term “Credit Agreement” as used in each of the Credit Documents shall
hereafter mean the Credit Agreement as amended by this Second Amendment. Except as specifically amended hereby or otherwise agreed, the Credit Agreement and the other Credit Documents are hereby ratified and confirmed and shall remain in full force
and effect according to their terms. 
  
 3.2 Representations
and Warranties of Credit Parties. Each of the Credit Parties represents and warrants as follows: 
  
 (a) It has taken all necessary action to authorize the execution, delivery and performance of this Second Amendment. 
  
 (b) This Second Amendment has been duly executed and
delivered by such Person and constitutes such Person’s legal, valid and binding obligations, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent
conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity). 
  
 (c) No consent, approval, authorization or order of, or
filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Person of this Second Amendment. 
  
 (d) The representations and warranties set forth in Article
III of the Credit Agreement are true and correct in all material respects as of the date hereof except for those which expressly relate to an earlier date. 
  
 (e) After giving effect to this Second Amendment, no event has occurred and is continuing which constitutes a Default or an Event of
Default. 
  
 (f) The Security Documents continue
to create a valid security interest in, and Lien upon, the Collateral, in favor of the Administrative Agent, for the benefit of the Lenders, which security interests and Liens are perfected in accordance with the terms of the Security Documents and
prior to all Liens other than Permitted Liens. 
  
 (g) Except as specifically provided in this Second Amendment, the Credit Party Obligations are not reduced or modified by this Second Amendment and are not subject to any offsets, defenses or counterclaims. 
  

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 3.3 Reaffirmation of Credit Party Obligations. Each Credit Party hereby ratifies the Credit
Agreement and acknowledges and reaffirms (a) that it is bound by all terms of the Credit Agreement applicable to it and (b) that it is responsible for the observance and full performance of its respective Credit Party Obligations.

  
 3.4 Instrument Pursuant to Credit Agreement.
This Second Amendment is a Credit Document executed pursuant to the Credit Agreement and shall be construed, administered and applied in accordance with the terms and provisions of the Credit Agreement. 
  
 3.5 Further Assurances. The Credit Parties agree to promptly
take such action, upon the request of the Administrative Agent, as is necessary to carry out the intent of this Second Amendment. 
  
 3.6 Expenses. The Borrower agrees to pay all reasonable costs and expenses of the Administrative Agent in connection with the preparation,
negotiation, execution and delivery of this Second Amendment, including, without limitation, the reasonable fees and expenses of Moore & Van Allen PLLC, and all previously incurred fees and expenses which remain outstanding on the date
hereof. 
  
 3.7 GOVERNING LAW. THIS SECOND AMENDMENT AND
THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH CAROLINA. 
  
 3.8 Counterparts/Telecopy. This Second Amendment may be executed by the parties hereto in several
counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement. Delivery of executed counterparts of the Second Amendment by telecopy shall be effective as an original and
shall constitute a representation that an original shall be delivered. 
  
 3.9 Successors and Assigns. This Second Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. 
  
 3.10 Consent to Jurisdiction; Service of Process; Arbitration; Waivers of Jury Trial and Consequential Damages.
The jurisdiction, service of process, arbitration and waiver of jury trial and consequential damages provisions set forth in Sections 9.13, 9.14 and 9.17 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

  
 3.11 Entirety. This Amendment and the other
Credit Documents embody the entire agreement between the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof. 
  
 [Signature Pages to Follow] 
  

 7 

 IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Second Amendment
to be duly executed and delivered as of the date first above written. 
  

					
	BORROWER:	 	NCI BUILDING SYSTEMS, INC.
			
	 	 	 By:
	 	 /s/ Norman Chambers

	 	 	 	 	 Norman Chambers

	 	 	 	 	 President and Chief Operating Officer

		
	GUARANTORS:	 	NCI OPERATING CORP.
	 	 	STEELBUILDING.COM, INC.
			
	 	 	 By:
	 	 /s/ Norman Chambers

	 	 	 	 	 Norman Chambers

	 	 	 	 	 President and Chief Operating Officer

		
	 	 	METAL COATERS OF CALIFORNIA, INC.
			
	 	 	 By:
	 	 /s/ Norman Chambers

	 	 	 	 	 Norman Chambers

	 	 	 	 	 President

		
	 	 	A & S BUILDING SYSTEMS, L.P.
	 	 	NCI BUILDING SYSTEMS, L.P.
	 	 	METAL BUILDING COMPONENTS, L.P.
	 	 	NCI GROUP, L.P.
			
	 	 	 	 	 NCI OPERATING CORP.,

	 	 	 	 	 as General Partner

			
	 	 	 By:
	 	 /s/ Norman Chambers

	 	 	 	 	 Norman Chambers

	 	 	 	 	 President and Chief Operating Officer

					
	 	 	NCI HOLDING CORP.
			
	 	 	By:	 	 /s/ Fred E. Schubert

	 	 	 	 	Fred E. Schubert
	 	 	 	 	President and Assistant Secretary

					
	 ADMINISTRATIVE AGENT
	 	 	 	 
	 AND LENDERS:
	 	WACHOVIA BANK, NATIONAL
	 	 	ASSOCIATION,
	 	 	as Administrative Agent and as a Lender
			
	 	 	By:	 	 /s/ Leanne S. Phillips

	 	 	 	 	Leanne S. Phillips
	 	 	 	 	Director

			
	
	                                        
                                        
         ,

	 as a Lender

		
	 By:
	 	  

	 Name:
	 	 
	 Title:Employment Agreement

 EXHIBIT 10.1 
  
 EMPLOYMENT AGREEMENT 
  
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is made by and between W&T Offshore, Inc., a Texas corporation (the “Company”), and
Stephen A. Landry (“Key Employee”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, The Company desires to engage Key Employee as its Senior Vice President – Chief Financial Officer and Assistant Secretary; and 
  
 WHEREAS, Key Employee is desirous of accepting such positions on the terms and conditions, and for the consideration,
hereinafter set forth; 
  
 NOW, THEREFORE, for and in
consideration of the mutual promises, covenants and obligations contained herein, the Company and Key Employee agree as follows: 
  
 ARTICLE 1: EMPLOYMENT AND DUTIES  
  

1.1 Employment; Effective Date. Effective as of October 1, 2005 (the “Effective Date”), and continuing for the
period of time set forth in Article 2 of this Agreement, Key Employee’s employment by the Company shall be subject to the terms and conditions of this Agreement. 
  
 1.2 Positions. During the term of this Agreement, the Company shall employ Key Employee in the position of
Senior Vice President and Chief Financial Officer of the Company, or in such other positions as the parties mutually may agree. Key Employee shall also serve as Assistant Secretary of the Company. 
  
 1.3 Duties and Services. Key Employee agrees to serve in the
positions referred to in paragraph 1.2 and to perform diligently and to the best of his abilities the duties and services appertaining to such offices, as well as such additional duties and services appropriate to such offices which the parties
mutually may agree upon from time to time. Key Employee’s employment shall also be subject to the policies maintained and established by the Company that are of general applicability to the Company’s employees, as such policies may be
amended from time to time. 
  
 1.4 Other Interests.
Key Employee agrees, during the period of his employment by the Company, to devote substantially all of his business time, energy and best efforts to the business and affairs of the Company and its affiliates and not to engage, directly or
indirectly, in any other business or businesses, whether or not similar to that of the Company, except with the consent of the Board of Directors of Company (the “Board of Directors”). The foregoing notwithstanding, the parties recognize
and agree that Key Employee may engage in other business activities that do not conflict with the business and affairs of the Company or interfere with Key Employee’s performance of his duties hereunder, which shall be at the sole determination
of the Board of Directors. 
  
 1.5 Duty of Loyalty.
Key Employee acknowledges and agrees that Key Employee owes a fiduciary duty of loyalty to act at all times in the best interests of the Company. In keeping with such duty, Key Employee shall make full disclosure to the Company of all business
opportunities pertaining to the Company’s business and shall not appropriate for Key Employee’s own benefit business opportunities concerning the Company’s business. 
  
 ARTICLE 2: TERM AND TERMINATION OF EMPLOYMENT  
  
 2.1 Term. Unless sooner terminated pursuant to other
provisions hereof, the Company agrees to employ Key Employee for the period beginning on the Effective Date and ending on the third anniversary of the Effective Date (the “Initial Expiration Date”); provided, however, that beginning on the
Initial Expiration Date, and on each anniversary of the Initial Expiration Date thereafter, if this Agreement has not been terminated pursuant to paragraph 2.2 or 2.3, then said term of employment shall automatically be extended for an additional
one-year period unless on or before the date that is 90 days prior to the first day of any such extension period either party shall give written notice to the other that no such automatic extension shall occur. 

 2.2 Company’s Right to Terminate. Notwithstanding the provisions of paragraph 2.1, the
Company shall have the right to terminate Key Employee’s employment under this Agreement at any time for any of the following reasons: 
  
 (i) upon Key Employee’s death; 
  
 (ii) upon Key Employee’s becoming incapacitated by accident, sickness, or other circumstances which, in the opinion of a physician
selected by the Company, renders him mentally or physically incapable of performing the duties and services required of him hereunder; or 
  
 (iii) for “Cause”, which shall mean Key Employee (A) has engaged in gross negligence or willful misconduct in the
performance of the duties required of him hereunder, (B) has willfully refused without proper legal reason to perform the duties and responsibilities required of him hereunder, (C) has materially breached any material provision of this
Agreement or any material corporate policy maintained and established by the Company that is of general applicability to the Company’s employees, (D) has willfully engaged in conduct that he knows or should know is materially injurious to
the Company or any of its affiliates, or (E) has been convicted of, or pleaded no contest to, a crime involving moral turpitude or any felony, or (F) has engaged in any act of serious dishonesty which adversely affects, or reasonably could
in the future adversely affect, the value, reliability, or performance of Key Employee in a material manner; provided, however, that Key Employee’s employment may be terminated for Cause only if such termination is approved by at least a
majority of a quorum (as defined in the Company’s By-laws) of the members of the Board of Directors after Key Employee has been given written notice by the Company of the specific reason for such termination and an opportunity for Key Employee,
together with his counsel, to be heard before the Board of Directors. 
  
 Members
of the Board of Directors may participate in any hearing that is required pursuant to paragraph 2.2(iii) by means of conference telephone or similar communications equipment by means of which all persons participating in the hearing can hear and
speak to each other. 
  
 2.3 Key Employee’s Right to
Terminate. Notwithstanding the provisions of paragraph 2.1, Key Employee shall have the right to terminate his employment under this Agreement for any of the following reasons: 
  
 (i) for “Good Reason”, which shall mean, within 60 days of and in connection with or based upon
(A) a material breach by the Company of any material provision of this Agreement , (B) a significant reduction in the nature or scope of Key Employee’s duties and responsibilities, (C) the assignment to Key Employee of duties and
responsibilities that are materially inconsistent with the positions referred to in paragraph 1.2, or (D) any requirement that Key Employee relocate to a site more than 50 miles from his present business address; provided, however, that, prior
to Key Employee’s termination for Good Reason, Key Employee must give written notice to the Company of any such breach, reduction, assignment or requirement and such breach, reduction, assignment or requirement must remain uncorrected for 10
days following such written notice; or 
  
 (ii)
at any time for any other reason whatsoever, in the sole discretion of Key Employee. 
  
 2.4 Notice of Termination. If Company desires to terminate Key Employee’s employment hereunder at any time prior to expiration of the term of employment as provided in paragraph 2.1, it shall do so
by giving written notice to Key Employee that it has elected to terminate Key Employee’s employment hereunder and stating the effective date and reason for such termination, provided that no such action shall alter or amend any other provisions
hereof or rights arising hereunder. If Key Employee desires to terminate his employment hereunder at any time prior to expiration of the term of employment as provided in paragraph 2.1, he shall do so by giving a 30-day written notice to the Company
that he has elected to terminate his employment hereunder and stating the effective date and reason for such termination, provided that no such action shall alter or amend any other provisions hereof or rights arising hereunder. 
  
 2.5 Deemed Resignations. Any termination of Key Employee’s
employment shall constitute an automatic resignation of Key Employee as an officer of the Company and each affiliate of the Company, and an automatic 

 
resignation of Key Employee from the Board of Directors (if applicable) and from the board of directors of any affiliate of the Company and from the board of
directors or similar governing body of any corporation, limited liability company or other entity in which the Company or any affiliate holds an equity interest and with respect to which board or similar governing body Key Employee serves as the
Company’s or such affiliate’s designee or other representative. 
  
 ARTICLE 3: COMPENSATION AND BENEFITS  
  
 3.1 Base Salary. During the period of this Agreement, Key Employee shall receive a minimum annual base salary of $250,000. Key Employee’s annual base salary shall be reviewed by the Board of
Directors (or a committee thereof) on an annual basis (or more frequently, should the Board of Directors decide to do so), and, in the sole discretion of the Board of Directors (or such committee), such annual base salary may be increased, but not
decreased, effective as of any date determined by the Board of Directors. Key Employee’s annual base salary shall be paid in equal installments in accordance with the Company’s standard policy regarding payment of compensation to employees
but no less frequently than monthly. 
  
 3.2
Bonuses. Key Employee shall be eligible to participate in the Company’s Bonus Plan and the Company’s Long Term Incentive Compensation Plan as approved from time to time by the Compensation Committee of the Board of Directors in
amounts to be determined by the Compensation Committee based upon criteria established by the Compensation Committee, except that Key Employee shall not participate in the plans for the fiscal year 2005. 
  
 3.3 Other Perquisites. During his employment hereunder, Key
Employee shall be afforded the following benefits as incidences of his employment: 
  
 (i) Business and Entertainment Expenses—Subject to the Company’s standard policies and procedures with respect to expense
reimbursement as applied to its employees generally, the Company shall reimburse Key Employee for, or pay on behalf of Key Employee, reasonable and appropriate expenses incurred by Key Employee for business related purposes, including dues and fees
to industry and professional organizations and costs of entertainment and business development. 
  
 (ii) Vacation—During his employment hereunder, Key Employee shall be entitled to 4 weeks of paid vacation each calendar year
(or such greater amount of vacation as provided to employees of the Company generally) and to all holidays provided to employees of the Company generally; provided, however, that for the period beginning on the Effective Date and ending on the last
day of the calendar year in which the Effective Date occurs, Key Employee shall be entitled to 4 weeks of paid vacation (or such greater amount of vacation as provided to employees of the Company generally) reduced by the number of vacation days
that Key Employee has already used during such calendar year and prior to the Effective Date. 
  
 (iii) Other Company Benefits—Key Employee and, to the extent applicable, Key Employee’s spouse, dependents and
beneficiaries, shall be allowed to participate in all benefits, plans and programs, including improvements or modifications of the same, which are now, or may hereafter be, available to other employees of the Company. Such benefits, plans and
programs shall include, without limitation, any profit sharing plan, thrift plan, health insurance or health care plan, life insurance, disability insurance, pension plan, supplemental retirement plan, vacation and sick leave plan, and the like
which may be maintained by the Company. The Company shall not, however, by reason of this paragraph be obligated to institute, maintain, or refrain from changing, amending, or discontinuing, any such benefit plan or program, so long as such changes
are similarly applicable to employees generally. 
  
 3.4
Signing bonus. Key Employee shall be entitled to receive a “signing bonus” of $190,000 payable immediately upon the execution of this Agreement. 
  
 3.5 Issuance of Restrictive Stock. The Company hereby grants to Key Employee 9,251 shares of restricted stock
under the Company’s Long-Term Incentive Compensation Plan. All restrictions with respect to 3,084 shares of such restricted stock shall lapse on December 31, 2006. All restrictions with respect to 3,084 additional shares of such restricted
stock shall lapse on December 31, 2007. All restrictions with respect to the remaining 3,083 shares 

 
of restricted stock shall lapse on December 31, 2008. Except as specifically provided in Article 4 hereof, the terms of the restricted stock, including
any rights of Key Employee upon a Change of Control, death or disability, shall be as set forth in the Long-Term Incentive Compensation Plan. 
  
 ARTICLE 4: EFFECT OF TERMINATION AND CHANGE IN CONTROL ON COMPENSATION; ADDITIONAL PAYMENTS  
  
 4.1 Defined Terms. For purposes of this Article 4, the following terms shall have the meanings indicated:

  
 “Base Amount” shall be the
“base amount” of Key Employee’s annual compensation, determined in accordance with Section 280(g) of the Internal Revenue Code of 1986, as amended. 
  
 “Change in Control” means (i) a merger of the Company with another entity, a consolidation
involving the Company, or the sale of all or substantially all of the assets of the Company to another entity if, in any such case, (A) the holders of equity securities of the Company immediately prior to such transaction or event do not
beneficially own immediately after such transaction or event equity securities of the resulting entity entitled to 40% or more of the votes then eligible to be cast in the election of directors generally (or comparable governing body) of the
resulting entity in substantially the same proportions that they owned the equity securities of the Company immediately prior to such transaction or event or (B) the persons who were members of the Board of Directors immediately prior to such
transaction or event shall not constitute at least a majority of the board of directors of the resulting entity immediately after such transaction or event, (ii) the dissolution or liquidation of Company, (iii) when any person or entity,
including a “group” as contemplated by Section 13(d)(3) of the Securities Exchange Act of 1934, as amended, acquires or gains ownership or control (including, without limitation, power to vote) of more than 60% of the combined voting
power of the outstanding securities of, (A) if the Company has not engaged in a merger or consolidation, Company, or (B) if the Company has engaged in a merger or consolidation, the resulting entity, or (iv) as a result of or in
connection with a contested election of directors, the persons who were members of the Board of Directors immediately before such election shall cease to constitute a majority of the Board of Directors. For purposes of the preceding sentence,
(1) “resulting entity” in the context of a transaction or event that is a merger, consolidation or sale of all or substantially all assets shall mean the surviving entity (or acquiring entity in the case of an asset sale) unless the
surviving entity (or acquiring entity in the case of an asset sale) is a subsidiary of another entity and the holders of common stock of the Company receive capital stock of such other entity in such transaction or event, in which event the
resulting entity shall be such other entity, and (2) subsequent to the consummation of a merger or consolidation that does not constitute a Change in Control, the term “Company” shall refer to the resulting entity and the term
“Board of Directors” shall refer to the board of directors (or comparable governing body) of the resulting entity. Notwithstanding the foregoing, if the Company engages in any transaction approved by the shareholders of the Company and by
the Board of Directors of the Company, and the Board of Directors of the Company (or any successor of the Company by merger, consolidation or otherwise) remains the Board of Directors of the Company (or any successor of the Company by merger,
consolidation or otherwise) immediately following such transaction, regardless of whether shareholders of the Company own a majority of the outstanding securities of the Company (or any successor of the Company by merger, consolidation or
otherwise), then such transaction shall not be considered a “Change in Control.” 
  
 “Termination Benefits” means (i) a lump sum cash payment equal to 3 times Key Employee’s “Base Amount”, less
$1.00. 
  
 “Health Coverage” means that
if Key Employee elects to continue coverage for himself or his eligible dependents under the Company’s group health plans pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), during the
twelve-month period commencing on the date of Key Employee’s termination of employment from the Company (the “Severance Period”), then throughout the Severance Period the Company shall promptly reimburse Key Employee on a monthly
basis for the difference between the amount Key Employee pays to effect and continue such coverage and the employee contribution amount that active senior employees pay for the same or similar coverage under Company’s group health plans.
Further, if after the Severance Period Key Employee continues his COBRA coverage and Key Employee’s COBRA coverage terminates at any time during the eighteen-month period 

 
commencing on the day immediately following the last day of the Severance Period (the “Extended Coverage Period”), then the Company shall provide
Key Employee (and his eligible dependents) with health benefits substantially similar to those provided under its group health plans for active employees for the remainder of the Extended Coverage Period at a cost to Key Employee that is no greater
than the cost of COBRA coverage; provided, however, that the Company shall use its reasonable efforts so that such health benefits are provided to Key Employee under one or more insurance policies (or such other manner) so that reimbursement or
payment of benefits to Key Employee thereunder shall not result in taxable income to Key Employee. Notwithstanding the preceding provisions of this paragraph, the Company’s obligation to reimburse Key Employee during the Severance Period and to
provide health benefits to Key Employee during the Extended Coverage Period shall immediately end if and to the extent Key Employee becomes eligible to receive health plan coverage from a subsequent employer (with Key Employee being obligated
hereunder to promptly report such eligibility to the Company). 
  
 4.2 Termination By Expiration. If Key Employee’s employment hereunder shall terminate upon expiration of the term provided in paragraph 2.1 hereof because either party has provided the notice contemplated in such
paragraph, then all compensation and all benefits to Key Employee hereunder shall continue to be provided until the expiration of such term and such compensation and benefits shall terminate contemporaneously with termination of his employment.

  
 4.3 Termination By the Company. If Key
Employee’s employment hereunder shall be terminated by the Company prior to expiration of the term provided in paragraph 2.1, then, upon such termination, regardless of the reason therefore, all compensation and benefits to Key Employee
hereunder shall terminate contemporaneously with the termination of such employment; provided, however, that, subject to paragraph 4.7 below, if such termination shall be for any reason other than those encompassed by paragraph 2.2(i), 2.2(ii), or
2.2(iii), then the Company shall provide Key Employee with the Termination Benefits. Any lump sum cash payment due to Key Employee pursuant to the preceding sentence shall be paid to Key Employee within five business days of the date of Key
Employee’s termination of employment with the Company; provided, however, that if the lump sum cash payment would be subject to additional taxes and interest under Section 409A of the Internal Revenue Code of 1986, as amended (the
“Code”), then payment of the lump sum cash payment shall be deferred to the extent required to avoid such additional taxes and interest. 
  
 4.4 Termination By Key Employee. If Key Employee’s employment hereunder shall be terminated by Key Employee prior to expiration of the
term provided in paragraph 2.1, then, upon such termination, regardless of the reason therefore, all compensation and benefits to Key Employee hereunder shall terminate contemporaneously with the termination of such employment; provided, however,
that, subject to paragraph 4.7 below, if such termination occurs for Good Reason, then the Company shall provide Key Employee with the Termination Benefits. Any lump sum cash payment due to Key Employee pursuant to this paragraph shall be paid to
Key Employee within five business days of the date of Key Employee’s termination of employment with the Company; provided, however, that if the lump sum cash payment would be subject to additional taxes and interest under Section 409A of
the Code, then payment of the lump sum cash payment shall be deferred to the extent required to avoid such additional taxes and interest. 
  
 4.5 Change in Control Benefits. If Key Employee is employed by the Company on the date upon which a Change in Control occurs, then the
Company shall provide Key Employee with the Termination Benefits (other than Health Coverage), which benefits shall be determined as if Key Employee’s employment by the Company terminated on the date of such Change in Control; provided,
however, that, if Key Employee is entitled to Termination Benefits under paragraph 4.3 or 4.4 of this Agreement as of the date of such Change in Control, then Key Employee shall not also be entitled to additional Termination Benefits under this
paragraph. Any lump sum cash payment due to Key Employee pursuant to the preceding sentence shall be paid to Key Employee within five business days of the date of the Change in Control. 
  
 4.6 Parachute Payments. Notwithstanding anything to the contrary in this Agreement, if Key Employee is a
“disqualified individual” (as defined in Section 280G(c) of the Code), and the benefits provided for in this Article, together with any other payments and benefits which Key Employee has the right to receive from the Company and its
affiliates, would constitute a “parachute payment” (as defined in Section 280G(b)(2) of the Code), then the benefits provided hereunder (beginning with any benefit to be paid in cash hereunder) shall be either (1) reduced 

 
(but not below zero) so that the present value of such total amounts and benefits received by Key Employee will be one dollar ($1.00) less than three times
Key Employee’s Base Amount and so that no portion of such amounts and benefits received by Key Employee shall be subject to the excise tax imposed by Section 4999 of the Code or (2) paid in full, whichever produces the better net
after-tax position to Key Employee (taking into account any applicable excise tax under Section 4999 of the Code and any other applicable taxes). The determination as to whether any such reduction in the amount of the benefits provided
hereunder is necessary shall be made initially by the Company in good faith. If a reduced benefit is provided hereunder in accordance with clause (1) of the first sentence of this paragraph and through error or otherwise that payment, when
aggregated with other payments and benefits from the Company (or its affiliates) used in determining if a “parachute payment” exists, exceeds one dollar ($1.00) less than three times Key Employee’s base amount, then Key Employee shall
immediately repay such excess to the Company upon notification that an overpayment has been made. 
  
 4.7 Release and Full Settlement. Anything to the contrary herein notwithstanding, as a condition to the receipt of Termination Benefits
under paragraph 4.3 or 4.4 hereof, Key Employee shall first execute a release, in the form established by the Board of Directors, releasing the Board of Directors, the Company, and the Company’s parent corporation, subsidiaries, affiliates, and
their respective shareholders, partners, officers, directors, employees, attorneys and agents from any and all claims and from any and all causes of action of any kind or character including, but not limited to, all claims or causes of action
arising out of Key Employee’s employment with the Company or its affiliates or the termination of such employment, but excluding all claims to vested benefits and payments Key Employee may have under any compensation or benefit plan, program or
arrangement, including this Agreement. The performance of the Company’s obligations hereunder and the receipt of any benefits provided under paragraphs 4.3 and 4.4 shall constitute full settlement of all such claims and causes of action.

  
 4.8 No Duty to Mitigate Losses. Key Employee
shall have no duty to find new employment following the termination of his employment under circumstances that require the Company to pay any amount to Key Employee pursuant to this Article 4. Except to the extent Key Employee becomes eligible to
receive health plan coverage from a subsequent employer as provided in paragraph 4.1 with respect to Health Coverage, any salary or remuneration received by Key Employee from a third party for the providing of personal services (whether by
employment or by functioning as an independent contractor) following the termination of his employment under circumstances pursuant to which this Article 4 apply shall not reduce the Company’s obligation to make a payment to Key Employee (or
the amount of such payment) pursuant to the terms of this Article 4. 
  
 4.9 Liquidated Damages. In light of the difficulties in estimating the damages for an early termination of Key Employee’s employment under this Agreement, the Company and Key Employee hereby agree that the payments, if
any, to be received by Key Employee pursuant to this Article 4 shall be received by Key Employee as liquidated damages. 
  
 4.10 Other Benefits. This Agreement governs the rights and obligations of Key Employee and the Company with respect to Key Employee’s
base salary and certain perquisites of employment. Except as expressly provided herein, Key Employee’s rights and obligations both during the term of his employment and thereafter with respect to stock options, restricted stock, incentive and
deferred compensation, life insurance policies insuring the life of Key Employee, and other benefits under the plans and programs maintained by the Company shall be governed by the separate agreements, plans and other documents and instruments
governing such matters. 
  
 ARTICLE 5:
MISCELLANEOUS  
  
 5.1 Notices. For
purposes of this Agreement, notices and all other communications provided for herein shall be in writing and shall be deemed to have been duly given when personally delivered or when mailed by United States registered or certified mail, return
receipt requested, postage prepaid, addressed as follows: 

			
	If to the Company
to:	  	 
	 	  	 W&T Offshore, Inc.
 Attn: Tracy W.
Krohn
 Eight Greenway Plaza, Suite 1330
 Houston, TX
77046

	 If to Employee to:
	  	 
		
	 	  	 Stephen A. Landry
 Senior Vice President and Chief Financial Officer
 W&T Offshore, Inc.
 Eight Greenway Plaza, Suite 1330
 Houston, TX 77046

  
 or to such other address as either
party may furnish to the other in writing in accordance herewith, except that notices or changes of address shall be effective only upon receipt. 
  
 7.2 Applicable Law. This Agreement is entered into under, and shall be governed for all purposes by, the laws of the State of Texas.

  
 7.3 No Waiver. No failure by either party hereto
at any time to give notice of any breach by the other party of, or to require compliance with, any condition or provision of this Agreement shall be deemed a waiver of similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. 
  
 7.4 Severability. If a court of
competent jurisdiction determines that any provision of this Agreement is invalid or unenforceable, then the invalidity or unenforceability of that provision shall not affect the validity or enforceability of any other provision of this Agreement,
and all other provisions shall remain in full force and effect. 
  
 7.5 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together will constitute one and the same Agreement. 
  
 7.6 Withholding of Taxes and Other Employee Deductions. The
Company may withhold from any benefits and payments made pursuant to this Agreement all federal, state, city and other taxes as may be required pursuant to any law or governmental regulation or ruling and all other normal employee deductions made
with respect to the Company’s employees generally. 
  
 7.7
Headings. The paragraph headings have been inserted for purposes of convenience and shall not be used for interpretive purposes. 
  
 7.8 Gender and Plurals. Wherever the context so requires, the masculine gender includes the feminine or neuter, and the singular number
includes the plural and conversely. 
  
 7.9
Affiliate. As used in this Agreement, the term “affiliate” shall mean any entity which owns or controls, is owned or controlled by, or is under common ownership or control with, the Company. 
  
 7.10 Assignment. This Agreement shall be binding upon and inure
to the benefit of the Company and any successor of the Company, by merger or otherwise. Except as provided in the preceding sentence, this Agreement, and the rights and obligations of the parties hereunder, are personal and neither this Agreement,
nor any right, benefit, or obligation of either party hereto, shall be subject to voluntary or involuntary assignment, alienation or transfer, whether by operation of law or otherwise, without the prior written consent of the other party.

 7.11 Term. This Agreement has a term co-extensive with the term of employment provided in
paragraph 2.1. Termination shall not affect any right or obligation of any party that is accrued or vested prior to such termination. 
  
 7.12 Entire Agreement. Except as provided in (i) the written benefit plans and programs referenced in paragraphs 3.2 and 3.3(iii) (and
any agreements between the Company and Key Employee that have been executed under such plans and programs) and (ii) any signed written agreement contemporaneously or hereafter executed by the Company and Key Employee, this Agreement constitutes
the entire agreement of the parties with regard to the subject matter hereof, and contains all the covenants, promises, representations, warranties and agreements between the parties with respect to employment of Key Employee by the Company. Without
limiting the scope of the preceding sentence, all understandings and agreements preceding the date of execution of this Agreement and relating to the subject matter hereof (other than the agreements described in clause (i) of the preceding
sentence) are hereby null and void and of no further force and effect. Any modification of this Agreement will be effective only if it is in writing and signed by the party to be charged. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the 3rd day of October, 2005, to be effective
as of the Effective Date. 
  

			
	W&T OFFSHORE, INC.
		
	 By:
	 	 /s/ Tracy W. Krohn

	 	 	

		
	 Name:
	 	 Tracy W. Krohn

		
	 Title:
	 	 CEO

		
	 	 	“COMPANY”
		
	 By:
	 	 /s/ Stephen A. Landry

	 	 	

		
	 Name:
	 	 Stephen A. Landry

		
	 	 	“EMPLOYEE”

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