Document:

exv10w13

 

Exhibit 10.13

FIRST AMENDMENT TO CREDIT AGREEMENT

     THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made and entered into
as of June 20, 2007 (the “Effective Date”) among SUPERIOR OFFSHORE INTERNATIONAL, INC., a
Delaware corporation as successor by merger to Superior Offshore International, L.L.C.
(“Borrower”), JPMORGAN CHASE BANK, N.A., for itself, as Lender and as Administrative Agent
for the Lenders (in such capacity, the “Agent”).

     WHEREAS, Borrower, Agent and Lenders are parties to that certain Credit Agreement, dated as of
February 27, 2007 (as amended, restated or modified from time to time, the “Credit
Agreement”);

     WHEREAS, Superior Offshore International, L.L.C. has merged with and into Superior Offshore
International, Inc., a Delaware corporation, with Superior Offshore International, Inc. being the
surviving entity, assuming all rights, duties and obligations of Superior Offshore International,
L.L.C.;

     WHEREAS, Borrower has represented to Agent and Lenders that such merger did not and does not
negatively affect Borrower’s ability to perform its obligation under the Credit Agreement or any
other Loan Documents;

     WHEREAS, Borrower, Agent and Lenders desire to amend the Credit Agreement to allow and provide
for such matters contained herein, all as hereinafter set forth.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

ARTICLE I

Definitions

     Section 1.01 Definitions. Capitalized terms used in this Amendment, to the extent not
otherwise defined herein, shall have the same meaning as in the Credit Agreement, as amended
hereby.

ARTICLE II

Amendments

     Section 2.01 Amendment of Preamble. Effective as of the Effective Date, the preamble
of the Credit Agreement is hereby amended and restated to read as follows:

“CREDIT AGREEMENT dated as of February 27, 2007 (as it may be amended or
modified from time to time, this “Agreement”), among SUPERIOR
OFFSHORE INTERNATIONAL, INC., successor-by-merger to Superior Offshore
International, L.L.C., the Lenders party hereto and JPMORGAN CHASE BANK,
N.A., as Administrative Agent. The parties hereto agree as follows:”

First Amendment to Credit Agreement

 

 

     Section 2.02 Amendment to Article I. Effective as of the Effective Date, the
following definitions found in Article I of the Credit Agreement are each hereby amended and
restated in their entireties to read as follows:

     “‘Borrower’ means, Superior Offshore International, Inc., a
Delaware corporation.”

     “‘Capital Expenditures’ means, for any period, with respect to
any Person, the aggregate of all expenditures by such Person and its
Subsidiaries for the acquisition or leasing (pursuant to a capital lease) of
fixed or capital assets or additions to equipment (including replacements,
capitalized repairs and improvements and maintenance and mandatory dry
docking during such period) that should be capitalized under GAAP on a
consolidated balance sheet of such Person and its Subsidiaries.”

     “‘Change in Control’ means, (i) any “person” or “group” (as
such terms are used in Sections 13(d) and 14(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)), other than Louis E. Schaefer,
Jr. and his Affiliates, shall become, or obtain rights (whether by means or
warrants, options or otherwise) to become, the “beneficial owner” (as
defined in Rules 13(d)-3 and 13(d) 5 under the Exchange Act), directly or
indirectly, of more than 30% of the outstanding Equity Interests of the
Borrower; or (ii) the board of directors of the Borrower shall cease to
consist of a majority of Continuing Directors.”

     “‘Intercreditor Agreement’ means any intercreditor agreement
entered into from time to time among Administrative Agent, the Borrower and
the holders of Indebtedness permitted hereunder, including, without
limitation, any intercreditor among Administrative Agent, the Borrower and
the Term Collateral Agent.”

     “‘LC Sublimit’ means, as of any date of determination, the
lesser of (a) $25,000,000 and (b) cash which is not subject to any other
security interest or lien of equal or superior priority to the Lien of
Administrative Agent, and held in an account of Administrative agent which
account is subject to an account control agreement in favor of
Administrative Agent.”

     “‘LIBO Rate’ means, with respect to any Eurodollar Borrowing
for any Interest Period, the rate per annum determined on the basis of the
rate for deposits in Dollars for a period equal to such Interest Period
commencing on the first day of such Interest Period appearing on Reuters
Screen Libor 01 Page as of 11:00 A.M., London time, two Business Days prior
to the beginning of such Interest Period. In the event that such rate does
not appear on Reuters Screen Libor 01 Page (or otherwise on such screen),
the “LIBO Rate” shall be determined by reference to such other
comparable publicly available service for displaying eurodollar rates as

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may be selected by the Administrative Agent or, in the absence of such
availability, by reference to the rate at which the Administrative Agent is
offered Dollar deposits at or about 11:00 A.M., New York City time, two
Business Days prior to the beginning of such Interest Period in the
interbank eurodollar market where its eurodollar and foreign currency and
exchange operations are then being conducted for delivery on the first day
of such Interest Period for the number of days comprised therein.”

     “‘Prepayment Event’ means:

     (a) any Asset Sale; or

     (b) any Recovery Event; or

     (c) the issuance by the Borrower, solely for cash proceeds, of any
Equity Interest, other than issuance(s) with cash proceeds in an aggregate
amount not to exceed $5,000,000, in any fiscal year (i) under the Superior
Offshore International, Inc. 2007 Stock Incentive Plan (as amended,
modified, or replaced from time to time) or any other stock incentive plan
adopted from time to time (as amended, modified, or replaced from time to
time) and (ii) of Equity Interests to directors, officers, or employees; or

     (d) the incurrence by any Loan Party of any indebtedness, other than
Indebtedness permitted under Section 6.01 or permitted by the Required
Lenders pursuant to Section 9.02;

provided, however, that to the extent that amounts received with
respect to clauses (a), (b), (c) and (d) above are (i) required to be
applied to prepayment of loans outstanding under Indebtedness permitted
under Section 6.01(l) and are so applied or (ii) permitted under
Indebtedness permitted under Section 6.01(l) to be reinvested and are so
reinvested, then such events shall not constitute a Prepayment Event
hereunder.”

     “‘Revolving Commitment’ means, with respect to each Lender, the
commitment, if any, of such Lender to make Revolving Loans and to acquire
participations in Letters of Credit, Overadvances and Swingline Loans
hereunder, expressed as an amount representing the maximum possible
aggregate amount of such Lender’s Revolving Exposure hereunder, as such
commitment may be reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 9.04. The initial
amount of each Lender’s Revolving Commitment is set forth on the Commitment
Schedule, or in the Assignment and Assumption pursuant to which such Lender
shall have assumed its Revolving Commitment, as applicable. The initial
aggregate amount of Lenders’ Revolving Commitment is $55,000,000.”

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     “‘Revolving Loan Sublimit’ means, as of any date of
determination, the lesser of (a) $30,000,000 and (b) the Availability as of
such date.”

     “‘Subordinated Indebtedness’ means any indebtedness of any Loan
Party or any of its Subsidiaries consented to in writing by the
Administrative Agent and subordinated to the Obligations in a manner and
form satisfactory to the Administrative Agent and Lenders in their sole
discretion as to right and time of payment and as to any other rights and
remedies thereunder.”

     “‘Superior Achiever’ means the DP III multipurpose vessel
currently under construction at the Merwede Shipyard Nieuwbouw BV (the
“Shipyard”) in The Netherlands, under a Shipbuilding Contract YN-714, dated
as of September 21, 2006, as amended (the “Shipbuilding Contract”), which
Shipbuilding Contract is subject to various Guarantees (the “Refund
Guarantees”) issued by Commerzbank AG Kantoor Amsterdam (the “Refund
Guarantor”).”

     “‘Term Loan Administrative Agent’ means Fortis Capital Corp.
and its successors and assigns, or any other Person reasonably acceptable to
Administrative Agent.”

     “‘Term Loan Agreement’ means that certain Credit Agreement by
and among Borrower, Term Loan Collateral Agent, Term Loan Administrative
Agent and the other lenders party thereto, or any other agreement reasonably
acceptable to Administrative Agent.”

     “‘Term Loan Collateral Agent’ means Fortis Capital Corp. and
its successors and assigns, or any other Person reasonably acceptable to
Administrative Agent.”

     Section 2.03 Amendment to Article I. Effective as of the Effective Date, Article I of
the Credit Agreement is hereby amended to add the following definitions in the correct alphabetical
order:

     “‘Consolidated EBITDA’ means, at any date, the aggregate amount
of EBITDA of the Borrower and its domestic Subsidiaries at such date,
determined on a consolidated basis in accordance with GAAP.”

     “‘Consolidated Leverage Ratio’ means, as at the last day of any
period, the ratio of Consolidated Total Debt on such day to (b) Consolidated
EBITDA for such period.”

     “‘Consolidated Total Debt’ means, at any date, the aggregate
principal amount of all Indebtedness of the Borrower and its domestic

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Subsidiaries at such date, determined on a consolidated basis in accordance
with GAAP.”

     Section 2.04 Amendment to Section 2.01(b). Effective as of the Effective Date,
Section 2.01(b) of the Credit Agreement is hereby amended by replacing the first proviso
thereto with the following:

     “provided, that in no event shall the aggregate Commitment of all
Lenders be increased to an amount greater than $70,000,000.”

     Section 2.05 Amendment to Section 2.03. Effective as of the Effective Date,
Section 2.03 of the Credit Agreement is hereby amended by replacing the first paragraph
thereto with the following:

     “To request a Revolving Borrowing, the Borrower shall notify the
Administrative Agent of such request either in writing (delivered by hand or
facsimile) in a form approved by the Administrative Agent and signed by the
Borrower or by telephone (a) in the case of a Eurodollar Borrowing, not
later than 10:00 a.m., Chicago time, three Business Days before the date of
the proposed Borrowing or (b) in the case of an ABR Borrowing, not later
than noon, Chicago time, on the date of the proposed Borrowing;
provided that any such notice of an ABR Revolving Borrowing to
finance the reimbursement of an LC Disbursement as contemplated by Section
2.06(e) may be given not later than 9:00 a.m., Chicago time, on the date of
the proposed Borrowing. Each such borrowing notice must be executed by
either the chief financial officer or the treasurer of the Borrower as well
as by any one of the following officers of the Borrower: chairman of the
board, chief executive officer, president, senior vice president, or
corporate secretary. Each such telephonic Borrowing Request shall be
irrevocable and shall be confirmed promptly by hand delivery or facsimile to
the Administrative Agent of a written Borrowing Request in a form approved
by the Administrative Agent and signed by the Borrower. Each such
telephonic and written Borrowing Request shall specify the following
information in compliance with Section 2.01:”

     Section 2.06 Amendment to Section 5.01(c). Effective as of the Effective Date,
Section 5.01(c) of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “(c) within 30 days after the end of each fiscal month of the Borrower,
a certificate of a Financial Officer of the Borrower in substantially the
form of Exhibit D (i) certifying, in the case of the financial
statements delivered under clause (b), as presenting fairly in all material
respects the financial condition and results of operations of the Borrower
and its consolidated Subsidiaries on a consolidated basis in

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accordance with GAAP consistently applied, subject to normal year-end audit adjustments and
the absence of footnotes, (ii) certifying as to whether a Default has
occurred and, if a Default has occurred, specifying the details thereof and
any action taken or proposed to be taken with respect thereto, (iii) setting
forth reasonably detailed calculations demonstrating compliance with
Sections 6.16 and 6.17 and (iv) stating whether any
change in GAAP or in the application thereof has occurred since the date of
the audited financial statements referred to in Section 3.04 and, if
any such change has occurred, specifying the effect of such change on the
financial statements accompanying such certificate; provided,
however, that for the months of March, June, September and December, such
certificate shall be delivered within 45 days after the end of each fiscal
month of the Borrower.”

     Section 2.07 Amendment to Section 5.02(d). Effective as of the Effective Date,
Section 5.02(d) of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “(d) any threat in writing to withhold any payment or payments in an
aggregate amount that exceeds $750,000 owed to any Loan Party by any
customer of such Loan Party and such notice shall detail the name, address
and brief summary of the reason for the threatened non-payment;”

     Section 2.08 Amendment to Article V. Effective as of the Effective Date, Article V of
the Credit Agreement is hereby amended by adding a new Section 5.14 immediately following
Section 5.13, as set forth below:

     “SECTION 5.14. Annual Appraisal; Vessel Utilization. Borrower
shall deliver to the Administrative Agent any asset appraisals and any asset
usage reports required to be delivered pursuant to the Term Loan Agreement,
as and when delivered to the Term Administrative Agent and/or Term
Collateral Agent as required under the Term Loan Agreement.”

     Section 2.09 Amendment to Article V. Effective as of the Effective Date, Article V of
the Credit Agreement is hereby amended by adding a new Section 5.15 immediately following
Section 5.14, as set forth below:

     “SECTION 5.15. Perfection. The Borrower shall use commercially
reasonable efforts to take such actions as may be reasonably requested by the
Administrative Agent (taking into consideration the cost of compliance and the
benefits to be provided to the Administrative Agent thereby) to perfect the interest
of the Administrative Agent in the owner furnished equipment used in the
construction of the Superior Achiever and/or the Superior Achiever under the laws of
The Netherlands.”

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     Section 2.10 Amendment to Section 6.01(f). Effective as of the Effective Date,
Section 6.01(f) of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “(f) Indebtedness (including, without limitation, Capital Lease
Obligations) secured by Liens permitted by Section 6.02(g) in an aggregate
principal amount not to exceed $2,000,000 in any fiscal year of the Borrower
at any time outstanding;”

     Section 2.11 Amendment to Section 6.01(h). Effective as of the Effective Date,
Section 6.01(h) of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “(h) Guarantee Obligations incurred by the Borrower of obligations of
Subtech in an aggregate amount not to exceed $2,000,000;”

     Section 2.12 Amendment to Section 6.01(i). Effective as of the Effective Date,
Section 6.01(i) of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “(i) Charter Obligations of the Borrower and its domestic Subsidiaries
in an aggregate amount not to exceed $10,000,000;”

     Section 2.13 Amendment to Section 6.01(j). Effective as of the Effective Date, the
semicolon immediately preceding the word “and” and the word “and” shall be deleted and a semicolon
shall be substituted therefor.

     Section 2.14 Amendment to Section 6.01(k). Effective as of the Effective Date,
Section 6.01(k) of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “(k) additional Indebtedness of the Borrower or any of its domestic
Subsidiaries in an aggregate principal amount (for the Borrower and all such
Subsidiaries) not to exceed $5,000,000 at any one time outstanding;”

     Section 2.15 Amendment to Section 6.01. Effective as of the Effective Date, a new
Section 6.01(l) shall be added to the Credit Agreement immediately following Section
6.01(k), and shall read in its entirety as follows:

     “(l) Indebtedness constituting financing of vessels or other equipment
in an amount not to exceed $60,000,000; provided, in the event that
the terms of such Indebtedness permit (without giving effect, for purposes
of this Section 6.01(l), to any amendment or waiver of such terms unless
otherwise agreed by the Agent and the Required Lenders) the aggregate amount
of such Indebtedness to be increased, the aggregate amount of such
Indebtedness may exceed $60,000,000 but not exceed $100,000,000;
provided, further, that in any event the collateral securing
such financing is not greater as to type or priority than the collateral

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securing the Term Loan Agreement and is subject to an intercreditor
agreement in form and substance satisfactory to Administrative Agent in its
sole discretion; and”

     Section 2.16 Amendment to Section 6.01. Effective as of the Effective Date, a new
Section 6.01(m) shall be added to the Credit Agreement immediately following Section
6.01(l), and shall read in its entirety as follows:

     “(m) Indebtedness consisting of the financing of insurance premiums
in an amount not to exceed $5,000,000.”

     Section 2.17 Amendment to Section 6.02(k). Effective as of the Effective Date, the
semicolon immediately preceding the word “and” and the word “and” shall be deleted and a semicolon
shall be substituted therefor.

     Section 2.18 Amendment to Section 6.02(l). Effective as of the Effective Date,
Section 6.02(l) of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “(l) Liens not otherwise permitted by this Section so long as neither
(i) the aggregate outstanding principal amount of the obligations secured
thereby nor (ii) the aggregate fair market value (determined as of the date
such Lien is incurred) of the assets subject thereto exceeds (as to the
Borrower and all domestic Subsidiaries) $1,500,000 at any one time;”

     Section 2.19 Amendment to Section 6.02. Effective as of the Effective Date, a new
Section 6.02(m) shall be added to the Credit Agreement immediately following Section
6.02(l) to read in its entirety as follows:

     “(m) Liens securing Indebtedness permitted in accordance with Section
6.01(l) herein.”

     Section 2.20 Amendment to Section 6.04(d). Effective as of the Effective Date,
Section 6.04(d) of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “(d) loans and advances to employees of the Borrower or any domestic
Subsidiary in the ordinary course of business (including for travel,
entertainment and relocation expenses (including the purchase of residences
to facilitate employee relocations)) in an aggregate amount for the Borrower
and all domestic Subsidiaries not to exceed $500,000 at any one time
outstanding;”

     Section 2.21 Amendment to Section 6.04(i). Effective as of the Effective Date,
Section 6.04(i) of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “(i) in addition to Investments otherwise expressly permitted by this
Section, Investments by the Borrower or any of its domestic

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Subsidiaries in an aggregate amount (valued at cost) not to exceed $2,000,000 during the
term of this Agreement;”

     Section 2.22 Amendment to Section 6.05(f). Effective as of the Effective Date,
Section 6.05(f) of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “(f) the Disposition of other property having a fair market value not
to exceed $3,000,000 in any fiscal year.”

     Section 2.23 Amendment to Section 6.08. Effective as of the Effective Date,
Section 6.08 of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “SECTION 6.08. Restricted Payments; Certain Payments of
Indebtedness. No Loan Party will, nor will it permit any domestic
Subsidiary to declare or pay any dividend (other than dividends payable
solely in common stock of the Person making such dividend) on, or make any
payment on account of, or set apart assets for a sinking or other analogous
fund for, the purchase, redemption, defeasance, retirement or other
acquisition of, any Equity Interests or Subordinated Debt of any Loan Party
or any Subsidiary, whether now or hereafter outstanding, or make any other
distribution in respect thereof, either directly or indirectly, whether in
cash or property or in obligations of any Loan Party or any Subsidiary
(collectively, “Restricted Payments”), except that:

     (a) any domestic Subsidiary may make Restricted Payments to the
Borrower or any wholly owned Subsidiary Guarantor;

     (b) so long as no Default or Event of Default shall have occurred and
be continuing, the Borrower may purchase its common stock or common stock
options from present or former officers or employees of any Loan Party or
any Subsidiary upon the death, disability or termination of employment of
such officer or employee, provided, that the aggregate amount of
payments under this clause (b) after the date hereof (net of any proceeds
received by the Borrower after the date hereof in connection with resales of
any common stock or common stock options so purchased) shall not exceed
$250,000 in any fiscal year of the Borrower;

     (c) the Borrower may acquire Equity Interests of the Borrower in
connection with the exercise of stock options or stock appreciation rights
by way of cashless exercise or in connection with the satisfaction of
withholding tax obligations; and

     (d) so long as (i) no Event of Default exists or would result
therefrom, (ii) no Default exists or would result therefrom due to
compliance with the Fixed Charge Coverage Ratio set forth in Section 6.17
and (iii) the Borrower has Availability of at least $15,000,000 after

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giving effect to such dividends, the Borrower may pay dividends to its
shareholders.”

     Section 2.24 Amendment to Section 6.09. Effective as of the Effective Date,
Section 6.09 of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “SECTION 6.09. Transactions with Affiliates. No Loan Party
will, nor will it permit any domestic Subsidiary to, except with respect to
(x) Investments permitted pursuant to Section 6.04(c), Section 6.04(d) and
Section 6.04(f), (y) the performance of employment, equity award, equity
option or equity appreciation agreements, plans or other similar
compensation or benefit plans or arrangements (including vacation plans,
health and insurance plans, deferred compensation plans and retirement
or savings plans) entered into by any of the Loan Parties in the ordinary
course of its business with its employees, officers and directors, and (z)
any indemnity provided on behalf of, officers, directors, and employees of
any of the Loan Parties in their capacity as such, to the extent customary,
enter into any transaction, including any purchase, sale, lease or exchange
of property, the rendering of any service or the payment of any management,
advisory or similar fees, with any Affiliate (other than the Borrower or any
wholly owned Subsidiary Guarantor) unless such transaction is (a) otherwise
permitted under this Agreement; provided, however, a Loan
party may enter into customary agreements for employment, confidentiality or
other similar agreements with the officers, directors and employees of any
of the Loan Parties so long as such agreements are in compliance with
subsections (b) and (c) hereof, (b) in the ordinary course of business of
the Borrower or relevant domestic Subsidiary, and (c) upon fair and
reasonable terms no less favorable to the Borrower or relevant domestic
Subsidiary than it would obtain in a comparable arm’s length transaction
with a Person that is not an Affiliate.”

     Section 2.25 Amendment to Section 6.10. Effective as of the Effective Date,
Section 6.10 of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “SECTION 6.10. Restrictive Agreements. No Loan Party will, nor
will it permit any domestic Subsidiary to enter into or suffer to exist or
become effective any agreement that prohibits or limits the ability of any
Loan Party to create, incur, assume or suffer to exist any Lien upon any of
its property or revenues, whether now owned or hereafter acquired, other
than (a) this Agreement and the other Loan Documents, (b) the Term Loan
Documentation and (c) any agreements governing any purchase money Liens,
vessel or equipment financing otherwise permitted hereby or, Capital Lease
Obligations otherwise permitted hereby (in which case, any

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prohibition or limitation shall only be effective against the assets financed thereby).”

     Section 2.26  Amendment to Section 6.12. Effective as of the Effective Date,
Section 6.12 of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “‘SECTION 6.12. Clauses Restricting Subsidiary
Distributions.’ No Loan Party will, nor will it permit any domestic
Subsidiary to enter into or suffer to exist or become effective any
consensual encumbrance or restriction on the ability of any domestic
Subsidiary of the Borrower to (a) make Restricted Payments in respect of any
Capital Stock of such domestic Subsidiary held by, or pay any Indebtedness
owed to, the Borrower or any other domestic Subsidiary of the Borrower, (b)
make loans or advances to, or other Investments in, the Borrower or any
other domestic Subsidiary of
the Borrower or (c) transfer any of its assets to the Borrower or any
other domestic Subsidiary of the Borrower, except for such encumbrances or
restrictions existing under or by reason of (i) any restrictions existing
under the Loan Documents, (ii) any restrictions existing under the Term Loan
Documentation or the documentation governing Indebtedness permitted under
Section 6.01(l) and (iii) any restrictions with respect to a domestic
Subsidiary imposed pursuant to an agreement that has been entered into in
connection with the Disposition of all or substantially all of the Capital
Stock or assets of such domestic Subsidiary.”

     Section 2.27 Amendment to Section 6.16. Effective as of the Effective Date,
Section 6.16 of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “‘SECTION 6.16. Capital Expenditures.’ No Loan Party will, nor
will it permit any domestic Subsidiary to, commencing with fiscal year 2007
and for each fiscal year thereafter, make or commit to make any Capital
Expenditure, except Capital Expenditures of the Borrower and its domestic
Subsidiaries in the ordinary course of business not exceeding in the
aggregate $40,000,000, in each case, exclusive of (i) any Net Proceeds of
any Asset Sale or Recovery Event applied in accordance with Section 2.11(c)
to acquire, replace, or repair assets and (ii) all Capital Expenditures
attributable to the Superior Achiever and related equipment to the extent
purchased or refinanced with proceeds of Indebtedness permitted under
Section 6.01(l) hereof or under the Term Loan Agreement.”

     Section 2.28 Amendment to Section 6.17. Effective as of the Effective Date,
Section 6.17 of the Credit Agreement is hereby amended to add a new subsection (b)
as set forth below:

     “(b) Consolidated Leverage Ratio. The Borrower will not
permit the Consolidated Leverage Ratio as of the last day of any period of
four (4) consecutive fiscal quarters to exceed 2.0 to 1.0.”

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     Section 2.29 Amendment to Article VI. Effective as of the Effective Date, Article
VI of the Credit Agreement is hereby amended by adding a new Section 6.18 as set forth
below:

     “SECTION 6.18. Modifications. No Loan Party shall, nor shall
it permit any of its Subsidiaries, to agree to any modification, amendment
or supplement to any instrument evidencing Subordinated Debt of such Loan
Party or Subsidiary without the prior written consent of the Administrative
Agent (which shall not be unreasonably withheld).”

     Section 2.30 Amendment to Article VI. Effective as of the Effective Date, Article
VI of the Credit Agreement is hereby amended by adding a new Section 6.19 as set forth
below:

     “SECTION 6.19. Intercreditor Agreement. Borrower shall not
execute and deliver the Term Loan Agreement unless concurrently with the
execution thereof, Borrower, Administrative Agent and Term Loan
Collateral Agent execute an Intercreditor Agreement reasonably acceptable to
the Administrative Agent.”

     Section 2.31 Amendment to Section 9.02. Effective as of the Effective Date,
Section 9.02 of the Credit Agreement is hereby amended by adding the following sentence at
the end of subsection (b):

     “In addition, any amendment or modification to the number or title of
the officers required to execute any borrowing notice (as provided in
Section 2.3) must be executed by such officers as would be required to
execute any borrowing notice (before giving effect to such amendment or
modification).”

     Section 2.32 Amendment to Commitment Schedule. Effective as of the Effective Date, the
Commitment Schedule is hereby amended and restated in its entirety with the Commitment Schedule
attached hereto as Exhibit A.

     Section 2.33 Amendment to Exhibit D. Effective as of the Effective Date, Exhibit D is
hereby amended and restated in its entirety with the Compliance Certificate attached hereto as
Exhibit B.

ARTICLE III

Conditions Precedent

     Section 3.01 Conditions. The effectiveness of this Amendment is subject to the
satisfaction of the following conditions precedent (such date on which such conditions are
satisfied being the “Effective Date”), unless specifically waived by Agent and Lenders.

     (a) Agent shall have received all of the following documents, each
document (unless otherwise indicated) being dated the date hereof, duly
authorized, executed and delivered by the parties thereto, and in form and
substance reasonably satisfactory to Agent and Lenders:

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     (i) this Amendment;

     (ii) that certain First Amendment to Pledge and Security
Agreement dated as of June ___, 2007 between Borrower and Agent.

     (iii) a certified copy of the resolutions of the Directors of
the Borrower authorizing the execution, delivery and performance of
this Amendment and any and all other Loan Documents executed by the
Borrower in connection therewith, along with a certificate of
incumbency certified by the secretary of the Borrower with specimen
signatures of the officers of the Borrower who are
authorized to sign such documents (such certificates of
incumbency to be bring down certificates of incumbency for
Borrower);

     (iv) that certain Reaffirmation of Loan Documents, dated as of
June ___, 2007 among Borrower, Agent and Lenders;

     (v) an executed copy of (i) the First Amendment to Preferred
Fleet Mortgage, Covering the Vessel SUPERIOR ENDEAVOR, Official
Number 1646 and (ii) the First Amendment to Preferred Fleet
Mortgage, Covering the Vessels GULF DIVER III, Official Number
576020, GULF DIVER IV, Official Number 553457, GULF DIVER
V, Official Number 555837 and GULF DIVER VI, Official
Number 589812;

     (vi) such additional documents, instruments and information as
Agent or Lenders or their legal counsel may reasonably request.

     (b) Agent shall have received a closing fee in the amount of $45,000,
which shall be fully earned, nonrefundable and payable on the Effective
Date.

     (c) The representations and warranties contained in the Credit
Agreement and/or in the other Loan Documents in each case, as Modified
(hereinafter defined) hereby and as contained herein shall be true and
correct as of the Effective Date as if made on such date, except to the
extent such representations and warranties (i) relate to any matter with
respect to which written notice has been given to Agent and/or Lenders by
Loan Parties pursuant to and in accordance with the Credit Agreement or (ii)
which by their terms expressly speak as of an earlier date;

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

First Amendment to Credit Agreement

13

 

     (e) All corporate proceedings taken in connection with the transactions
contemplated by this Amendment and all documents, instruments and other
legal matters incident thereto shall be reasonably satisfactory to Agent,
Lenders and their legal counsel.

     Section 3.02 The term “Modified” as used herein shall mean and include expressly
amended or modified, as the case may be, and shall include correlative meanings thereof; provided
however, for the avoidance of doubt, the term “Modified” shall not include any waivers that are
subsequently terminated and of no longer of any force and effect pursuant to the terms hereof.

ARTICLE IV

Ratifications, Representations and Warranties

     Section 4.01 Ratifications. The terms and provisions set forth in this Amendment
shall modify and supersede all inconsistent terms and provisions set forth in the Credit Agreement
and except as Modified and superseded by this Amendment, the terms and provisions of the Credit
Agreement are each ratified and confirmed and shall continue in full force and effect.
Additionally, Borrower hereby ratifies and confirms its agreements under the Credit Agreement and
the other Loan Documents, in each case as Modified hereby, as of each of the date hereof, the
Effective Date. Borrower hereby agrees that all Liens and security interests securing payment of
the Obligations are hereby collectively renewed, ratified and brought forward as security for the
payment and performance of the Obligations, as the same may have been Modified by this Amendment
and the documents executed in connection herewith, in each case as of each of the Effective Date.

     Section 4.02 Representations and Warranties. Borrower hereby represents and warrants
to Agent and Lenders as of the date hereof and the Effective Date that (i) the execution, delivery
and performance of this Amendment and any and all other Loan Documents executed and/or delivered in
connection herewith have been authorized by all requisite corporate action on the part of the
Borrower and will not violate the certificate/articles of incorporation or other analogous
formation documents of the Borrower (ii) the representations and warranties contained in the Credit
Agreement, and any other Loan Document, in each case as Modified hereby, are true and correct on
and as of the date hereof and as of the Effective Date as though made on and as of such date,
except to the extent any such representations and warranties (A) relate to any matter with respect
to which written notice has been provided by the Borrower pursuant to and in accordance with the
Credit Agreement or (B) which by their terms expressly speak as of an earlier date, (iii) no
Default or Event of Default has occurred and is continuing under the Credit Agreement or the Loan
Documents, each as Modified hereby, (iv) Borrower has not amended its certificate/articles of
incorporation or other analogous formation document or bylaws or other analogous charter or
organizational documents after April 18, 2007.

ARTICLE V

Miscellaneous

     Section 5.01 Survival of Representations and Warranties. All representations and
warranties made in the Credit Agreement or any other document or documents relating thereto,

First Amendment to Credit Agreement

14

 

including, without limitation, any Loan Document furnished in connection with this Amendment, shall
survive the execution and delivery of this Amendment and the other Loan Documents, in each case, as
Modified hereby, and no investigation by Agent or any Lender or any closing shall affect the
representations and warranties or the right of Agent or Lenders to rely upon them.

     Section 5.02 Reference to Credit Agreement; Obligations. Each of the Loan Documents,
including the Credit Agreement and any and all other agreements, documents or instruments now or
hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the
Credit Agreement, are hereby amended so that any reference in such Loan Documents to the Credit
Agreement or any other Loan Documents shall mean a reference to the
Credit Agreement or such other Loan Document, in each case as Modified hereby. Borrower
acknowledges and agrees that its obligations under this Amendment and the Credit Agreement, as
amended hereby, constitute “Obligations” as defined in the Credit Agreement and as used in the Loan
Documents.

     Section 5.03 Expenses. As provided in the Credit Agreement, Borrower agrees to pay on
demand all reasonable costs and expenses incurred by Agent in connection with the preparation,
negotiation and execution of this Amendment and the other Loan Documents executed pursuant hereto
and any and all amendments, modifications, and supplements thereto, including, without limitation,
the reasonable costs and fees of Agent’s legal counsel, and all reasonable costs and expenses
incurred by Agent in connection with the enforcement or preservation of any rights under the Credit
Agreement or any other Loan Document, in each case as Modified hereby.

     Section 5.04 Severability. Any provision of this Amendment held by a court of
competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder
of this Amendment and the effect thereof shall be confined to the provision so held to be invalid
or unenforceable. Furthermore, in lieu of each such invalid or unenforceable provision there shall
be added automatically as a part of this Amendment a valid and enforceable provision that comes
closest to expressing the intention of such invalid unenforceable provision.

     Section 5.05 APPLICABLE LAW. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE
LOAN DOCUMENTS, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE,
THIS AMENDMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED, AND
ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS (WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS)
OF THE STATE OF TEXAS, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

     Section 5.06 Successors and Assigns. This Amendment is binding upon and shall inure
to the benefit of Agent, Lenders, the Borrower and their respective successors and assigns, except
that the Borrower may not assign or transfer any of its rights or obligations hereunder without the
prior written consent of each Lender.

First Amendment to Credit Agreement

15

 

     Section 5.07 Counterparts. This Amendment may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original, but all of which
when taken together shall constitute one and the same instrument.

     Section 5.08 No Waiver. Nothing contained herein shall be construed as a waiver by
Agent or Borrower of any covenant or provision of the Credit Agreement, Security Agreement, the
other Loan Documents, or of any other contract or instrument between Borrower and Agent, and the
failure of Agent at any time or times hereafter to require strict performance by the Borrower of
any provision thereof shall not waive, affect or diminish any right Agent has to thereafter demand
strict compliance therewith. Agent hereby reserves all rights granted under the
Credit Agreement, Security Agreement, other Loan Documents, and any other contract or
instrument between the Borrower and Agent.

     Section 5.09 Headings. The headings, captions, and arrangements used in this
Amendment are for convenience only and shall not affect the interpretation of this Amendment.

     Section 5.10 Release. BORROWER ACKNOWLEDGES THAT, BASED ON THE FACTS AND
CIRCUMSTANCES KNOWN TO BORROWER AS OF THE DATE HEREOF, IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET,
CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER RESULTING FROM THE CREDIT
AGREEMENT, THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE
ALL OR ANY PART OF ITS LIABILITY TO REPAY THE “OBLIGATIONS” OR TO SEEK AFFIRMATIVE RELIEF OR
DAMAGES OF ANY KIND OR NATURE FROM AGENT OR LENDERS. BORROWER HEREBY VOLUNTARILY AND KNOWINGLY
RELEASE AND FOREVER DISCHARGE AGENT AND LENDER, THEIR RESPECTIVE PREDECESSORS, OFFICERS, DIRECTORS,
EMPLOYEES, AGENTS, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF
ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, IN EACH CASE, TO THE EXTENT (A)
KNOWN, ANTICIPATED OR SUSPECTED BY BORROWER AS OF THE DATE HEREOF AND (B) RESULTING FROM THE
CREDIT AGREEMENT, THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, WHETHER FIXED, CONTINGENT, OR
CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS
AMENDMENT IS EXECUTED, WHICH BORROWER MAY NOW HAVE AGAINST AGENT AND ANY LENDER, THEIR
PREDECESSORS, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SUCCESSORS AND ASSIGNS, IF ANY, AND
IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR
REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY LOANS, INCLUDING, WITHOUT LIMITATION, ANY
CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE
HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE CREDIT AGREEMENT
OR OTHER LOAN DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT.

     Section 5.11 NO ORAL AGREEMENTS. THIS WRITTEN AGREEMENT REPRESENTS THE FINAL
AGREEMENT BETWEEN THE PARTIES AND MAY NOT

First Amendment to Credit Agreement

16

 

BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN AGREEMENTS BETWEEN THE PARTIES.

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

First Amendment to Credit Agreement

17

 

     IN WITNESS WHEREOF, this Amendment has been executed on the Effective Date.

	 	 	 	 	 
	 	BORROWER:

SUPERIOR OFFSHORE INTERNATIONAL, 
INC.

 	 
	 	By:  	/s/ Roger D. Burks
 	 
	 	Name: Roger D. Burks

Title:  Chief Financial Officer 	 

First Amendment to Credit Agreement

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	AGENT:

JPMORGAN CHASE BANK, N.A.

Individually, as Administrative Agent and Lender

 	 
	 	By:  	/s/ Christy West
 	 
	 	Name: Christy West 
	 	Title:  Vice President
	 

 

 

SCHEDULE I

EXHIBIT A

TO THE

FIRST AMENDMENT TO CREDIT AGREEMENT

COMMITMENT SCHEDULE

	 	 	 	 	 	 	 
	                  Lender	Revolving Commitment		Commitment	 
	JPMorgan Chase Bank, N.A.
	 	$55,000,000	 		$55,000,000	 
	 
	 	 	 		 	 
	Total
	 	$55,000,000	 		$55,000,000	 
	 
	 	 	 		 	 

 

 

EXHIBIT B 

TO THE

FIRST AMENDMENT TO CREDIT AGREEMENT

COMPLIANCE CERTIFICATE

To:       The Lenders parties to the Credit Agreement Described Below

     This Compliance Certificate is furnished pursuant to that certain Credit Agreement dated as of
February 27, 2007 (as amended by that First Amendment to Credit Agreement and as may be further
amended, modified, renewed or extended from time to time, the “Agreement”) among Superior
Offshore International, Inc. (the “Borrower”), the other Loan Parties, the Lenders party
thereto and JPMorgan Chase Bank, N.A., as Administrative Agent for the Lenders and as the Issuing
Bank. Unless otherwise defined herein, capitalized terms used in this Compliance Certificate have
the meanings ascribed thereto in the Agreement.

     THE UNDERSIGNED HEREBY CERTIFIES THAT:

     1. I am the duly elected                      of the Borrower;

     2. I have reviewed the terms of the Agreement and I have made, or have caused to be made under
my supervision, a detailed review of the transactions and conditions of the Borrower and its
Subsidiaries during the accounting period covered by the attached financial statements [for
quarterly or monthly financial statements add: and such financial statements present fairly in all
material respects the financial condition and results of operations of the Borrower and its
consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied,
subject to normal year-end audit adjustments and the absence of footnotes];

     3. The examinations described in paragraph 2 did not disclose, except as set forth below, and
I have no knowledge of (i) the existence of any condition or event which constitutes a Default
during or at the end of the accounting period covered by the attached financial statements or as of
the date of this Certificate or (ii) any change in GAAP or in the application thereof that has
occurred since the date of the audited financial statements referred to in Section 3.04 of the
Agreement;

     4. I hereby certify that no Loan Party has changed (i) its name, (ii) its chief executive
office, (iii) the type of entity it is or (iv) its state of incorporation or organization without
having given the Agent the notice required by Section 4.15 of the Security Agreement;

     5. Schedule I attached hereto sets forth financial data and computations evidencing
the Borrower’s compliance with certain covenants of the Agreement, all of which data and
computations are true, complete and correct; and

 

 

     6. Schedule II attached hereto sets forth the various reports and deliveries which are
required at this time under the Credit Agreement and the other Loan Documents and the status of
compliance.

     7. Exhibit A attached hereto sets forth the calculation of Average 30-Day
Availability.

     8. The basis for the determination of the Applicable Margin shall be (check one):

___  Average 30-Day Availability

  ___  Fixed Charge Coverage Ratio.

     Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the (i)
nature of the condition or event, the period during which it has existed and the action which the
Borrower has taken, is taking, or proposes to take with respect to each such condition or event or
(i) the change in GAAP or the application thereof and the effect of such change on the attached
financial statements:

	 	 	 	 	 
	 

	 	 
 

	 	 
	 
	 	 	 	 
	 

	 	 
 

	 	 
	 
	 	 	 	 
	 

	 	 
 

	 	 

     The foregoing certifications, together with the computations set forth in Schedule I
and Schedule II hereto and the financial statements delivered with this Certificate in
support hereof, are made and delivered this ___day of ___, ___.

	 	 	 	 	 
	 	SUPERIOR OFFSHORE INTERNATIONAL, INC. 

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

SCHEDULE I

Compliance as of _________, ____ with

Provisions of       and                      of

the Agreement

6.16 CAPITAL EXPENDITURES

	 	 	 	 	 
	(A)
	 	The actual Capital Expenditures for the Fiscal Year total:	 	$
	 
	 	 	 	 
	 
	 	 	 	 
	(B)
	 	Minus Capital Expenditures made with Net Proceeds of Asset Sales or Recovery Events:	 	$
	 
	 	 	 	 
	 
	 	 	 	 
	(C)
	 	Minus Capital Expenditures attributable to the Superior
Achiever or related equipment and made or refinanced with proceeds of the term loan	 	$
	 
	 	 	 	 
	 
	 	 	 	 
	(D)
	 	Applicable Capital Expenditures for the Fiscal Year (A) – (B) – (C):	 	$
	 
	 	 	 	 
	 
	 	 	 	 
	(E)
	 	The amount of Capital Expenditures are not permitted to exceed the sum of:	 	$
	 
	 	 	 	 

 

			
	*	 	As set forth in Section 6.16 of the Credit Agreement.

6.17 

(A) FIXED CHARGE COVERAGE RATIO

	 	 	 	 	 
	The actual Fixed Charge Coverage Ratio for the period

of four Fiscal Quarters most recently ended (the “Reported Period”) is:
	 	___ to 1.0
	 
	 	 	 	 
	the Fixed Charge Coverage Ratio is required to be not less than:
	 	 	1.2 to 1.0	 

 

			
	*	 	As set forth in Section 6.17(a) of the Credit Agreement.

The Fixed Charge coverage Ratio of the Reported Period has been calculated as follows:

		 	 	 	 	 
		(A)
	 	EBITDA for the Reported Period:

(See below for calculation of EBITDA)	 	$
		 
	 	 	 	 
		 
	 	 	 	 
		 
	 	   minus	 	 
		 
	 	 	 	 
		(B)
	 	the unfinanced portion of Capital Expenditures:	 	$
		 
	 	 	 	 
		 
	 	 	 	 
		 
	 	   divided by	 	 
		 
	 	 	 	 
		(C)
	 	Fixed Charges for the Reported Period:	 	$
		 
	 	 	 	 

 

 

(B) CONSOLIDATED LEVERAGE RATIO

	 	 	 	 	 
	The actual Consolidated Leverage for the period of
The Reported Period is:
	 	___ to 1.0
	 
	 	 	 	 
	the Fixed Charge Coverage Ratio is required to be not less than:
	 	 	2.0 to 1.0	 

 

			
	*	 	As set forth in Section 6.17(b) of the Credit Agreement.

The Consolidated Leverage Ratio of the Reported Period has been calculated as follows:

		 	 	 	 	 
		(D)
	 	Consolidated Total Debt on any such day:	 	$
		 
	 	 	 	 
		 
	 	 	 	 
		 
	 	   divided by	 	 
		 
	 	 	 	 
		(E)
	 	Consolidated EBITDA for the Restricted Period: (See below for calculation of EBITDA)	 	$
		 
	 	 	 	 

 

 

CALCULATION OF FIXED CHARGES

For purposes of this Compliance Certificate, consolidated Fixed Charges for the Reported Period
has been calculated as follows and are all calculated for the Borrower and its Subsidiaries on a
consolidated basis::

	 	 	 	 	 
	 	 	(a) cash Interest Expense during such period:
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	plus
	 	 
	 	 	 
	 	 
	 	 	(b) scheduled principal payments
on Indebtedness made during such period:
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	plus
	 	 
	 	 	 
	 	 
	 	 	(c) expense for taxes paid in cash during such period:
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	plus
	 	 
	 	 	 
	 	 
	 	 	(d) dividends and distributions paid in cash
during such period, other than any Restricted
payment made to a Loan Party or made pursuant
to Section 6.08(c) or (d):
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	plus
	 	 
	 	 	 
	 	 
	 	 	(e) Capital Lease Obligation payments made
during such period:
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	plus
	 	 
	 	 	 
	 	 
	 	 	(f) cash contributions to any Plan:
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	TOTAL FIXED CHARGES:
	 	  $
	 	 	 
	 	 

 

 

CALCULATION OF EBITDA

For purposes of this Compliance Certificate, EBITDA for the Reported period has been calculated as
follows:

	 	 	 	 	 
	I. Net Income for the Reported Period:	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	plus
	 	 
	 	 	 
	 	 
	II. for the Reported Period, the sum of:	 	 
	 	 	 
	 	 
	 	 	a) income tax expense:
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	b) interest expense, amortization or write-off of debt
discount and debt issuance costs and commissions,
discounts and other fee and charges associated with
Indebtedness (including the Loans):
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	c) depreciation and amortization expense:
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	d) amortization of intangibles (including, but not limited
to, goodwill) and organization costs:
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	e) any extraordinary non-cash expenses or losses
(including, whether or not otherwise included as a
separate item in the statement of such Net Income
for such period, non-cash losses on sales of assets
outside of the ordinary course of business):
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	minus
	 	 
	 	 	 
	 	 
	 	 	a) to the extent included in the statement of such Net Income for
such period the sum of :
	 	 	 
	 	 
	 	 	i. interest income:
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	ii. any extraordinary or non-recurring non-cash income
or gains (including, whether or not otherwise included
as a separate item in the statement of such Net Income
for such period, gains on the sales of assets outside of
the ordinary course of business):
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	iii. income tax credits (to the extent not netted from income
tax expense):
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	iv. any other non-cash income, and
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	 	 	b) any cash payments made during such period in respect
of items described in clause (e) above subsequent to the
fiscal quarter in which the relevant non-cash expenses or
losses were reflected as a charge in the statement of Net
Income:
	 	$
	 	 	 
	 	 
	 	 	 
	 	 
	TOTAL EBITDA:	 	  $
	 	 	 
	 	 

 

 

SCHEDULE II

Reports and Deliveries Currently Dueexv4w1

 

Exhibit 4.1

RESTATED CERTIFICATE OF INCORPORATION

OF

EXTERRAN HOLDINGS, INC.

(originally incorporated on February 2, 2007

under the name Iliad Holdings, Inc.)

     ONE: The name of the corporation is Exterran Holdings, Inc. (hereinafter referred to as the
“Corporation”).

     TWO: The address of the registered office of the Corporation in the State of Delaware is
Corporation Trust Center, 1209 Orange Street, in the City of Wilmington, County of New Castle. The
name of the registered agent of the Corporation at that address is The Corporation Trust Company.

     THREE: The nature of the business or purposes to be conducted or promoted is to engage in any
lawful act or activity for which corporations may be organized under the General Corporation Law of
the State of Delaware (the “GCL”).

     FOUR: The total number of shares of all classes of stock which the Corporation shall have
authority to issue is 300 million, consisting of 250 million shares of Common Stock, par value one
cent ($0.01) per share (the “Common Stock”), and 50 million shares of Preferred Stock, par
value one cent ($0.01) per share (the “Preferred Stock”).

          SECTION 1. Preferred Stock. The Board of Directors is authorized, subject to any limitations
prescribed by law, to provide for the issuance of shares of Preferred Stock in series, and by
filing a certificate pursuant to the applicable law of the State of Delaware (such certificate
being hereinafter referred to as a “Preferred Stock Designation”), to establish from time
to time the number of shares to be included in each such series, and to fix the designation,
powers, preferences, and rights of the shares of each such series and any qualifications,
limitations or restrictions thereof. The number of authorized shares of Preferred Stock may be
increased or decreased (but not below the number of shares thereof then outstanding) by the
affirmative vote of the holders of a majority of the voting power of all of the then-outstanding
shares of the capital stock of the Corporation entitled to vote thereon, without a separate class
vote of the holders of the Preferred Stock, or of any series thereof, unless a vote of any such
holders is required pursuant to the terms of any Preferred Stock Designation.

          SECTION 2. Common Stock.

          A. Except as otherwise provided in this Article Four or required by law, each registered
holder of Common Stock shall be entitled to one vote for each share of such Common Stock held by
such holder on each matter properly submitted to the stockholders of the Corporation for their
vote; provided, however, that, except as otherwise required by law, holders of Common Stock shall
not be entitled to vote on any amendment to this Restated Certificate of Incorporation (including
any Preferred Stock Designation) that relates solely to the terms of one or more outstanding series
of Preferred Stock if the holders of such affected series are entitled,

 

 

either separately or
together as a class with the holders of one or more other such series, to vote thereon by law or
pursuant to this Restated Certificate of Incorporation (including any Preferred Stock Designation).

          B. Except as otherwise provided in this Article Four or required by law and subject to the
rights of the holders of any series of Preferred Stock,

               (i) Holders of Common Stock shall be entitled to elect directors of the Corporation; and

               (ii) Holders of Common Stock shall be entitled to vote on all other matters properly submitted
to a vote of stockholders of the Corporation.

          C. The number of authorized shares of Common Stock may be increased or decreased (but not
below the number of shares thereof then outstanding) by the affirmative vote of the holders a
majority of the voting power of all of the then-outstanding shares of the capital stock of the
Corporation entitled to vote thereon, voting together as a single class, without a separate class
vote of the holders of Common Stock.

     FIVE: The following provisions are inserted for the management of the business and the conduct
of the affairs of the Corporation, and for further definition, limitation and regulation of the
powers of the Corporation and of its directors and stockholders:

          A. The business and affairs of the Corporation shall be managed by or under the direction of
the Board of Directors. In addition to the powers and authority expressly conferred upon them by
statute or by this Restated Certificate of Incorporation or the Bylaws of the Corporation, the
directors are hereby empowered to exercise all such powers and do all such acts and things as may
be exercised or done by the Corporation.

          B. The directors of the Corporation need not be elected by written ballot unless the Bylaws so
provide.

          C. Subject to the rights of the holders of any series of Preferred Stock, any action required
or permitted to be taken by the stockholders of the Corporation must be effected at a duly called
annual or special meeting of stockholders of the Corporation and may not be effected by any consent
in writing by such stockholders.

          D. Special meetings of stockholders of the Corporation may only be called by the Chairman of the
Board or the President or by the Board of Directors as provided in the Bylaws of the Corporation.

     SIX:

          A. Subject to the rights of the holders of any series of Preferred Stock to elect additional
directors under specified circumstances, the number of directors shall be fixed from time to time
exclusively by the Board of Directors in the manner provided in the Bylaws of the Corporation.

2

 

          B. Subject to the rights of the holders of any series of Preferred Stock then outstanding,
newly created directorships resulting from any increase in the authorized number of directors or
any vacancies in the Board of Directors resulting from death, resignation, retirement,
disqualification, removal from office or other cause shall, unless otherwise required by law or by
resolution of the Board of Directors, be filled by the Board of Directors in the manner provided in
the Bylaws of the Corporation, and directors so chosen shall hold office for a term expiring at the
next annual meeting of stockholders and until such director’s successor shall have been duly
elected and qualified. No decrease in the authorized number of directors shall shorten the term of
any incumbent director.

          C. Advance notice of stockholder nominations for the election of directors and of business to
be brought by stockholders before any meeting of the stockholders of the Corporation shall be given
in the manner provided in the Bylaws of the Corporation.

          D. Subject to the rights of the holders of any series of Preferred Stock then outstanding, any
director, or the entire Board of Directors, may be removed from office at any time, with or without
cause, by the affirmative vote of the holders of a majority of the voting power of all of the then
outstanding shares of capital stock of the Corporation entitled to vote generally in the election
of directors, voting together as a single class.

     SEVEN: The Board of Directors is expressly empowered to adopt, amend or repeal Bylaws of the
Corporation. Any adoption, amendment or repeal of the Bylaws of the Corporation by the Board of
Directors shall require the approval of the Board of Directors as in the manner provided in the
Bylaws of the Corporation. The stockholders shall also have power to adopt, amend or repeal the
Bylaws of the Corporation; provided, however, that, in addition to any vote of the holders of any
class or series of capital stock of the Corporation required by law or by this Restated Certificate
of Incorporation, the affirmative vote of the holders of a majority of the voting power of all of
the then outstanding shares of the capital stock of the Corporation entitled to vote generally in
the election of directors, voting together as a single class, shall be required to adopt, amend or
repeal any provision of the Bylaws of the Corporation.

     EIGHT: A director of the Corporation shall not be personally liable to the Corporation or its
stockholders for monetary damages for breach of fiduciary duty as a director, except for liability
(i) for any breach of the director’s duty of loyalty to the Corporation or its stockholders, (ii)
for acts or omissions not in good faith or which involve intentional misconduct or a knowing
violation of law, (iii) under Section 174 of the GCL, or (iv) for any transaction from which the
director derived an improper personal benefit. If the GCL is amended to authorize corporate action
further eliminating or limiting the personal liability of directors, then the liability of a
director of the Corporation shall be eliminated or limited to the fullest extent permitted by the
GCL, as so amended.

     Any repeal or modification of the foregoing paragraph by the stockholders of the Corporation
shall not adversely affect any right or protection of a director of the Corporation existing at the
time of such repeal or modification.

     NINE: The Corporation shall indemnify and advance expenses to each director and officer of the
Corporation as provided in the Bylaws of the Corporation and may

3

 

indemnify and advance expenses to
each employee and agent of the Corporation, and all other persons whom the Corporation is
authorized to indemnify under the provisions of the GCL, as provided in the Bylaws of the
Corporation.

4

 

          IN WITNESS WHEREOF, this Restated Certificate of Incorporation, which restates and integrates
and further amends the provisions of the Certificate of Incorporation of this Corporation, and
which has been duly adopted in accordance with Section 242 and 245 of the Delaware General
Corporation Law and by the written consent of its sole stockholder in accordance with Section 228
of the Delaware General Corporation Law, has been executed by its duly authorized officer this ___th
day of ___, 2007.

	 	 	 	 	 	 	 
	 	 	EXTERRAN HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

5

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