Document:

Security Agreement

 Exhibit 10.4 

Case No. FF–G–017B 

SECURITY AGREEMENT 

This Security Agreement (hereinafter, the “Agreement”), made between Omega Protein, Inc., (hereinafter, the
“Borrower”), whose address is 2105 City West Blvd., Suite 500, Houston, Texas 77042 and the UNITED STATES OF AMERICA, acting by and through the Secretary of Commerce, National Oceanic and Atmospheric Administration, National Marine
Fisheries Service, Financial Services Division, 1315 East-West Highway, Silver Spring, Maryland 20910, which is the Secured Party, (hereinafter the “Government”). 

All terms contained herein are defined in the Acknowledgment of Definitions executed by all parties to this transaction. 

W I T N E S S E T 
H 
 WHEREAS, the Borrower desires to enter into a promissory Note to the United States (hereinafter, the
“Note”), dated May 25, 2010, in the amount of TEN MILLION AND 00/100 Dollars ($10,000,000.00), pursuant to the provisions of Title XI of the Merchant Marine Act, 1936, as amended, found at 46 USC § 1271 et seq., and 50 CFR 253, as
amended by Public Law 104-297 on October 11, 1996, known as the Fisheries Finance Program, (hereinafter, the “FFP Debt”); and 

WHEREAS, the Government will not enter into this transaction unless the Government is granted a security interest in certain property.

 NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt whereof being hereby
acknowledged, the parties agree as follows: 
 Section 1. The Borrower hereby grants to the Government a security
interest in the following described property, together with all accessories, substitutions, additions, replacements, parts and accessions affixed to or used in connection therewith (hereinafter, the “Collateral”): 

(a) The whole of the fishing vessel GRAND CHENIERE, Official Number 590692, together with all related gear, boilers, machinery,
electronics, equipment, motors, skiffs, inventory, supplies, contracts, contract rights, charter hire, freight, licenses and/or permits, general intangibles, transferable fishery conservation and management allocations, now owned or hereafter
acquired, attached or not attached or to be attached, to secure payment of the Borrower’s debt to the Government as evidenced hereby and by Borrower’s Note to the Government of even date herewith payable to the Government, in

  

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accordance with the Note, in the amount of TEN MILLION AND NO/Dollars, ($10,000,000.00) payable on the terms, at the times, and with interest as set forth in said Note. Borrower agrees to pay the
Note and, if any portion thereof, principal or interest, is not paid when due, Borrower agrees to pay, in addition to the foregoing, the reasonable collection costs of the Government; 

(b) Any and all federal or state fisheries permits, individual fishing quotas (IFQ), individual transferable quotas (ITQ), community
development quotas (CDQ), quota shares, allocations, endorsements, rights, licenses, or tags, whether vested individually with the Borrower or appurtenant to the Vessel, whether now owned or hereafter acquired, whether now existing or hereafter
created by rule, regulation, statute or fishery management council action, which now exist or are hereafter created pursuant to any limited entry programs, moratorium periods, high seas permits, license limitation programs or total allowable catch
and domestic annual processing assessments or like programs or assessments whether or not any of the foregoing relate to or affect the fishing operations of the vessel. 

(c) All insurances pertaining to the Collateral, including, without limitation, hull and machinery, increased value, war risk, protection
and indemnity, pollution, worker’s liability and compensation, loss of earnings, personal property, liability and all other insurances and association entries, and all claims and all returns of premiums, dues, calls, and assessments that are
not immediately applied to future premiums, dues, calls, and assessments, and all other sums or claims for sums due or to become due thereunder; 

(d) All debts and obligations owing to the Borrower, including, without limitation, interest thereon, charges and other expenses and fees
advanced by or incurred by or for the Government, and all liens and encumbrances securing any or all of the foregoing; 
 (e)
Borrower grants the Government a security interest in the following real estate situated in Northumberland County, Commonwealth of Virginia, fully described in Exhibit A. 

EXHIBIT “A” IS ATTACHED AND MADE A PART HEREOF 

together with all buildings and other improvements, hereditaments and appurtenances thereunto belonging, or in any wise appertaining now existing or
hereafter erected upon the premises and all the income and rents arising therefrom. Borrower does hereby intend to convey and does convey all of Borrower’s right, title and interest in and to any strips and gores Borrower may now own contiguous
to the above described property; 
 (f) It is expressly understood and agreed, as a part of the consideration for the loan made
to the Borrower and secured by the 
  

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premises described in Exhibit A, this instrument covers and includes all surface, subsurface and/or mineral estate ownership now or after acquired by the undersigned in the above property and
whether or not expressly excepted from the description to the above security premises, any provisions herein to the contrary being of no force and effect; 

(g) For the consideration aforesaid, and as further security for any and all debt(s) and obligation(s) described above, said Borrower
does hereby assign, pledge and transfer to the Government, and grant to the Government a security interest in and to the following described property and interests which are listed on Exhibit B and/or set out as follows: (1) all timber of all kind,
character and description planted and/or growing, or to be planted and/or grown, on the hereinabove described property; (2) all crop allotments, quotas, and/or (3) all rents, profits, issues, income, royalties, bonuses, and revenue of said property,
or any part or interest herein, from time to time accruing whether under leases or tenancies now existing or hereafter created; (4) each and every policy of hazard insurance, or the like, now or hereafter in effect which insures said property or any
building, fixture and/or improvement thereon, or any part thereof, together with all the right, title and interest of Borrower in and to such policy, including but not limited to any premiums paid (or rights to return premiums) and/or all proceeds
or payments thereunder; (5) all judgments, award of damages and settlements hereafter made resulting from condemnation proceedings or the taking of the real property, or any part thereof, under the power of eminent domain, or for any damage (whether
caused by such taking or otherwise) to the property, or any part thereof, or to any rights appurtenant thereto; (6) all building materials, equipment, fixtures and fittings of all kind, character, and description used in connection with or relating
to said property and/or buildings, fixtures or improvements thereon; (7) all equipment, including, but not limited to: forklifts, bobcats, cranes, pallet trucks, lift trucks and other product or material movement equipment of whatsoever nature; all
trailers, tanks, trucks or other rolling stock of whatsoever nature except that equipment used for transport and licensed by the state motor vehicle department; all fish unloading, transfer and conveying equipment of whatsoever nature; fungible
goods, including fish; all fish processing equipment of whatsoever nature; all fish weighing equipment of whatsoever nature; all cooling, refrigerating, freezing and other fish holding equipment (blast freezers, coolers, or other refrigeration
equipment) of whatsoever nature; all fish packaging equipment of whatsoever nature; all fish baskets, totes, tanks, tubs and other fish holding equipment of whatsoever nature; all ice makers of whatsoever nature, all hand and power tools of
whatsoever nature; all office equipment of whatsoever nature; all fish hatching, releasing, rearing, growing, tending and other equipment of whatsoever nature in any way associated with fisheries cultivation of every sort—all together with all
associated equipment, machinery, parts, tools, or other items of 
  

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whatsoever nature and whether fixed or unfixed to the property or any other premises whatsoever; and/or (8) all tangible or intangible property found on the premises which is not listed on
Exhibit “B”, and products, proceeds, and additions and/or replacements of any or all of the property described above in Items 1 through 7, also including all after-acquired personal property to be located in or about the said facility of
Borrower, subject to any purchase-money security interest acquired by any vendor of said after-acquired personal property; 

EXHIBIT “B” IS ATTACHED AND MADE A PART HEREOF 

Section 2. The Borrower hereby warrants and covenants that: 

(a) Except as may otherwise be required in the ordinary course of business, at all times the items listed on Exhibit B will be kept on
the property itself, in transit, or in storage and shall not be removed from said location, in whole or in part, until such time as written consent to a change of location is obtained by the Borrower from the Government; 

(b) The Collateral is to be used primarily for business use and kept at the Borrower’s principal place of business. 

Section 3. Other terms and conditions: 

(a) In the event that this Security Agreement, the Note, or any provisions hereof or thereof shall be deemed invalid in whole or in part
by reason of any present or future law of the United States or any decision of any authoritative court, or if the documents at any time held by the Government be deemed by the Government, for any reason, insufficient to carry out the true intent and
spirit of this Security Agreement and the Note, then, from time to time, the Borrower will execute on its own behalf such other and further assurances and documents as in the opinion of counsel for the Government may be required to more effectually
subject the Collateral to the payment of the principal sum of the Note, together with interest thereon, as in the Note and as herein provided, and in the performance of the terms and conditions of the Note and this Security Agreement. Upon failure
of the Borrower so to do, the Government may execute such other and further assurances and documents, for and in the name of the Borrower, and the Borrower hereby irrevocably appoints the Government the agent attorney-in-fact of the Borrower so to
do. Any expenses of the Government in connection with the foregoing shall be a debt due from the Borrower to the Government in payment thereof and shall be added to the outstanding principal amount and be secured by the lien of this Security
Agreement; 
 (b) The Borrower will faithfully observe, perform and discharge all of the covenants, conditions, and obligations
which are imposed on the Borrower by any and all indentures and other agreements or 
  

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documents and will not permit to occur any act or omission which is or may be declared to be a default under any such indenture, agreement, or document; 

Section 4. The Borrower hereby further warrants and covenants that: 

(a) No financing statement covering any of the Collateral described herein is on file in any public office except in favor of the
Government. The Borrower is the owner of the Collateral free from any prior lien, security interest or encumbrance, except in favor of the Government, and will defend the Collateral against the claims and demands of all persons whomsoever;

 (b) Except as may otherwise be required in the ordinary course of business, the Borrower will not sell, exchange, lease, or
otherwise dispose of the Collateral, or any part thereof, or suffer or permit any lien, levy, or attachment, or security interest therein, or financing statement to be filed with reference thereto, other than that of the Government; 

(c) The Borrower will maintain the Collateral in good condition and repair and preserve the same against waste, loss, damage, or
depreciation in value other than by reasonable wear. The Borrower will not use any of the Collateral in violation of any law or public regulation. The Government may examine and inspect the Collateral at any reasonable times, wherever located, and
for that purpose hereby is authorized by the Borrower to enter any place or places where the Collateral may be; 
 (d) The
Borrower will keep the Collateral fully insured against loss or damage by fire, theft (and collision if applicable), and such other hazards as the Government may from time to time require, with such deductible provisions, upon such terms, including
loss payable and other endorsements, and in such company or companies as the Government may approve; Borrower immediately will deliver all policies to the Government, to be retained by the latter in pledge to secure Borrower’s obligations
hereunder, with irrevocable authority to adjust any loss, receive and receipt for any sum payable, surrender any policy, discharge and release any insurer, endorse in Borrower’s name any loss or refund check or draft and, in general, exercise
in the name of the Borrower or otherwise, any and all rights of the Borrower in respect thereto or in respect to the proceeds thereof; 

(e) The Borrower will pay, when due, all taxes, license fees and assessments relative to the Collateral or its use and relative to the
Note. Should the Borrower fail in its performance of any of the foregoing, the Government may pay the same, including any security interest having priority hereto, may order and pay for the repair, maintenance and preservation of the Collateral, or
any part thereof, may place and pay for any such insurance and may pay any such taxes. 
  

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 The Borrower agrees to pay to the Government on demand all of the latter’s
disbursements for any of said purposes with interest at the rate of eighteen percent (18%) per annum, or such lesser rate which the Government, in its sole discretion, may determine. Said sum shall be added to the sums due under the Note, shall
be an indebtedness of the Borrower, immediately due and payable, and shall be secured by this Security Agreement. 

Notwithstanding the Government’s election under this provision to fix an interest rate of less than eighteen percent (18%) for
payment of these items, in the event of a default which results in acceleration of sums due under the Note, the accelerated interest rate of eighteen percent (18%), will also be applied to any amounts expended for items listed in this paragraph,
from the date of payment until repaid; 
 (f) The Borrower agrees to notify the Government promptly in writing of any change in
its business name or address, corporate structure (including the jurisdiction under which it is incorporated), principal place of business and Borrower’s residence. 

(g) By executing this Security Agreement, the Borrower authorizes the Government to file financing statements and amendments thereto to
perfect the security interests created by this Agreement. The recording of these financing statements will be at the Borrower’s expense. 

(h) The Borrower hereby consents to any extension of time of payment and to any substitution, exchange, or release of Collateral and to
the addition to or release of any party or person primarily or secondarily liable for the Note. 
 Section 5.
General terms: 
 (a) The Note is a separate instrument and may be negotiated, extended, or renewed by the Government without
releasing the Borrower, and and all Collateral, or any guarantor or co-maker; 
 (b) All of the benefits of this Security
Agreement shall inure to the Government, its successor in interest and assigns, and the obligations hereunder shall be binding upon the Borrower, its legal representatives, successors and assigns; 

(c) If there is more than one Borrower or guarantor or co-maker of the Note, the obligation of each and all shall be primary and joint
and several; 
 (d) The provisions of this Security Agreement are severable, if a provision is held invalid or unenforceable by
a court of competent jurisdiction, such holding shall not affect or impair any of the remaining provisions; 
  

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 (e) The Government shall not be deemed to have waived any of its rights under this or any
other agreement executed by the Borrower unless the waiver is in writing signed by the Government. No delay in exercising the Government’s rights shall constitute a waiver nor shall a waiver on one occasion operate as a waiver of such right on
a future occasion; 
 (f) Each notice from one to the other party in this Security Agreement shall be sufficient if served
personally or given by U. S. registered or certified mail, addressed to the other party at its last known address. Reasonable notice, when notice is required, shall be deemed to be five days from date of mailing; 

Section 6. Default: 

(a) The Borrower shall be in default under this Security Agreement upon the happening of any of the following events or conditions:

 (1) The Borrower’s failure to pay, when due, the principal of or interest on the Note, including any
amendments thereto or substitutions therefore, and/or any other amounts due the Government in connection with this transaction; 

(2) The Borrower’s failure to keep, observe, or perform any provision of this Security Agreement or any other
agreement between the Borrower and the Government, including but not limited to, the Preferred Ship Mortgage on the aforementioned fishing vessel, and the Deed of Trust on the aforementioned real property, and all loan documents; 

(3) The failure of any guarantor, co-maker, or other party to keep, observe or perform any agreement between said party
and the Government connected with or arising from the aforementioned obligation; 
 (4) The discovery of any
misrepresentation, or material falsity of any warrant, representation, or statement made or furnished by the Borrower to the Government, whether or not in connection with this Security Agreement; 

(5) The loss, theft, or destruction of or substantial damage to the Collateral; 

(6) The Government deems or has reasonable cause to deem itself insecure; 

 

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 (7) The failure or termination of the business, or commencement of any
insolvency or receivership proceedings by or against the Borrower, or if the Borrower dies or becomes insolvent, and if Borrower is a partnership, the death of any partner, and if the Borrower is a corporation, the dissolution of said corporation;

 (8) The occurrence of any event that would adversely affect the ability of the Borrower or the Guarantor to
timely service the debt owed the Government or that would cause the Government to reasonably deem itself an insecure creditor. 

Section 7. Cure of Defaults: 

If the Borrower shall have, within fifteen (15) days after the occurrence thereof, removed and remedied each event of default as set
forth herein, then in every such case, the Secretary shall waive any such event of default; but no such waiver shall extend to nor affect any subsequent or other event of default nor impair any rights or remedies consequent thereon. 

Section 8. Remedies of the Government: 

Upon Borrower’s default, the Government shall have each and all of the rights and remedies granted to him by the Uniform Commercial
Code of the state in which this Security Agreement is filed, by the Note, by this Security Agreement, and by the Preferred Ship Mortgage, by the Deed of Trust, and other loan documents, and may declare the Note immediately due and payable and
thereafter shall bear interest at eighteen percent (18%) per annum, unless limited by applicable state law, and may require the Borrower to assemble the Collateral and make it available to the Government at a place to be designated by the
Government which is reasonably convenient to both parties. The Borrower agrees to pay the Government’s reasonable counsel fees and other expenses incurred by the latter in retaking, holding, preparing for sale, and realizing on said Collateral.
Should suit or action be instituted on this Security Agreement, on the Note, or to replevy the Collateral, or any part thereof, Borrower agrees to pay (1) the Government’s reasonable attorney’s fees to be fixed by the trial court and
(2) on appeal, if any, similar fees in the appellate court. Provided, however, that if the Borrower shall have removed and remedied each Event of Default within fifteen (15) days after the occurrence thereof, then in every such case the
Government shall waive any such Event of Default; but no such waiver shall extend to nor affect any subsequent or other Event of Default nor impair any rights or remedies consequent thereon; and provided further that if at any time after the
expiration of fifteen (15) days after any Event of Default shall have occurred, all Events of Default shall have been remedied and removed and full performance made by the Borrower to the satisfaction of the Government and all installments of
principal and interest in arrears (including interest at 
  

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the default rate, as aforesaid) and the reasonable charges and expenses, if any, of the Government, its agents and attorneys, shall have been paid, then and in every such case the Government may
waive any such Event of Default; and provided, also, that no waiver hereunder shall extend to nor affect any subsequent or other Event of Default nor impair any rights or remedies consequent thereon. 

Section 9. Governing Law: 

Except to the extent that the laws of the United States govern, all provisions of this Agreement shall be construed, given effect, and enforced according
to the laws of the Commonwealth of Virginia. With respect to any claim or proceeding related to this Agreement the Borrower hereby consents to and subjects itself to the jurisdiction of the federal court of competent jurisdiction of the Commonwealth
of Virginia and agrees that the venue of any action or proceeding relating to this Agreement shall be exclusively in the federal court situated in the Commonwealth of Virginia unless the Secretary has instituted proceedings where the Collateral may
be found and in such case, Borrower consents to and subjects itself to the jurisdiction of the federal court which maintains jurisdiction over the Collateral. 

IN WITNESS WHEREOF, the parties have executed and delivered this Security Agreement as of the     day of
,             2010. 
  

			
	GOVERNMENT:
	
	UNITED STATES OF AMERICA
	 Acting by and through the Secretary of Commerce National Oceanic and Atmospheric Administration National Marine Fisheries
Service
 Financial Services Division

		
	By:	 	  

		
	Title:	 	 Chief, Financial Services Branch

Southeast Region

  

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		 		 		 	BORROWER: Omega Protein, Inc.
		 		 		 	
	Attest:	 		 		 	
					
	By:	 	 /s/ John Held
	 		 	By:	 	 /s/ Robert Stockton

					
	Title:	 	 Vice President
	 		 	Title:	 	 Vice President and Treasurer

					
	Date:	 	 May 25, 2010
	 		 	Date:	 	 May 25, 2010

 

 10 

 ACKNOWLEDGMENT 

 

							
	STATE OF FLORIDA	 	)	 		  	
		 	)	 	ss	  	
	COUNTY OF PINELLAS	 	)	 		  	

 On the    day of
            , 2010, before me personally came Shawn Barry to me known and known to me to be the duly authorized representative of the Secretary of Commerce of the United States of America
and he duly acknowledged to me that he executed the above instrument as such representative of the Secretary of Commerce pursuant to the authority vested in him by the laws of the United States. 

 

	
	  

	Notary Public

  

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 ACKNOWLEDGMENT 

 

							
	STATE OF TEXAS	 	)	 		  	
		 	)	 	ss	  	
	COUNTY OF HARRIS	 	)	 		  	

 On the
25th day of May, 2010 before me personally appeared
Robert W. Stockton, to me known or produced satisfactory identification, who being duly sworn, did depose and say that he is the Vice President and Treasurer of Omega Protein, Inc., and that he signed his name to said Security
Agreement by like order, and acknowledged that the same is the free and voluntary act and deed of said corporation and of himself as such Vice President and Treasurer for the uses and purposes therein expressed. 

 

	
	 /s/ Michelle Morton Reese

	Notary Public
	
	

  

 12Title XI Financial Agreement

 Exhibit 10.5 

Case No. FF-G-017B 

TITLE XI FINANCIAL AGREEMENT 

THIS TITLE XI FINANCIAL AGREEMENT (hereinafter, the “Financial Agreement”), dated May 25, 2010, is made and entered into by Omega
Protein, Inc., (hereinafter, the “Borrower”), Omega Protein Corporation, (hereinafter, the
“Guarantor”),1 and the UNITED STATES OF AMERICA
acting by and through the Secretary of Commerce, (hereinafter, the “Government”), 
 DEFINITIONS: All terms contained herein are
defined in the Acknowledgment of Definitions executed by all parties to this transaction. 
 WHEREAS, heretofore, the Government, pursuant to
the provisions of Title XI of the Merchant Marine Act, 1936, as amended, found at 46 USC § 1271 et seq., and 50 CFR 253, as amended by Public Law 104-297 on October 11, 1996, known as the Fisheries Finance Program (FFP), made, entered
into, and delivered certain agreements and covenants, as contained in an approval and agreement letter (hereinafter, the “Approval Letter”), dated December 1, 2005, and such Approval Letter has been accepted by the Borrower and
the Guarantor. The Approval Letter contemplates a loan from the Government to the Borrower, in the amount of $16,442,000.00, in separate tranches. The first tranche was evidenced by the issuance of a Promissory Note to the United States of
America, dated March 7, 2007, by the Borrower, in the principal amount of $6,349,000.00. 
 WHEREAS, the Borrower and the
Guarantor have entered into, and delivered an approval and agreement letter dated November 5, 2009, and such Approval Letter has been accepted by the Borrower and the Guarantor. The Approval Letter contemplates a loan from the Government
to the Borrower, in the amount of $10,000,000.00 for the second tranche (hereinafter, the “Loan”). The second tranche will be evidenced by the issuance of a Promissory Note to the United States of America, by the Borrower in the
principal amount of $10,000,000.00, (hereinafter, the “Note”). The Loan, including but not limited to the Note, will be secured by the property listed in ARTICLES I and II, below; and 

WHEREAS, the Borrower and Guarantor understand that the Government is unwilling to enter into the aforementioned transaction unless this Financial
Agreement and related documents are executed by the Borrower and Guarantor. For that reason, the Borrower and Guarantor have agreed to execute and deliver this Financial Agreement. 

 

	1
	In this agreement, use of the singular includes the plural and vice versa. 

  

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 NOW THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt
and adequacy of which is hereby acknowledged, the Borrower and Guarantor hereby agree to the following: 
 ARTICLE I:
COLLATERAL 
 The Collateral which the Borrower is giving to the Government in order to obtain this loan from the Government, includes all
of the items listed below: 
 1. THE EQUIPMENT: The Borrower will provide to the Government security interests, evidenced by UCC filings, in the
full amount of the Promissory Note, on all of the property described below (hereinafter, the “Equipment”). 
 All
fisheries unloading, processing holding and distribution equipment of whatsoever nature, now or at any time in the future, together with all accessories, improvements, replacements, substitutions, or additions thereto, used for the Borrower’s
business on the properties which secure the Promissory Note and any other debt to the Government, or on any other Borrower’s business premises at any other site at which the Borrower now conducts, or in the future may conduct, its operations
and regardless of the Equipment’s actual location at any given time. The Equipment shall include, but not be limited to: all forklifts, bobcats, cranes, pallet trucks, lift trucks, and other product or material movement equipment; all trailers,
tanks, trucks, or other rolling stock of whatsoever nature, except that equipment used for transport and licensed by the state motor vehicle department; all fish unloading, transfer, and conveying equipment, all fish processing and fish weighing
equipment; all cooling, refrigerating, freezing, and other fish holding equipment (blast freezers, plate freezers, coolers, or other refrigeration equipment); all fish packaging equipment; all fish baskets, totes, tanks, tubs, and other fish holding
equipment; all ice makers; all hand and power tools; all inventory and product, subject to lien of credit line lender; and all office equipment—all together with all associated equipment, machinery, parts, tools, or other items of whatsoever
nature and whether fixed or unfixed to the aforementioned properties securing the Promissory Note. 
 THIS EXCLUDES ONLY SUCH FIRST UCC SECURITY
INTERESTS TO THIRD PARTIES as may be necessary and appropriate to secure credit from such parties for the specific purpose of purchasing specific equipment (hereinafter, the “Purchase-Money Equipment”). In such cases, the Borrower agrees
to the following: 
 (a) To give to the Government UCC security interests on the Purchase-Money Equipment second only to the
first interests pledged to the lenders of the purchase money (hereinafter, the “Purchase-Money UCC security interests”); and 
  

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 (b) That the amount secured by the Purchase-Money UCC security interests shall not exceed
the specific purchase cost of said equipment; and 
 (c) The term of the credit secured to buy the Purchase-Money Equipment (and
likewise, the duration of the Purchase-Money UCC security interests) shall not exceed an ordinarily prudent commercial term; and 

(d) No other Equipment or rights shall be secured by the Purchase-Money UCC security interests; and 

(e) Upon full repayment of the amounts secured by the Purchase-Money Equipment, as reflected in the Purchase-Money UCC security interests,
these interests shall be satisfied and the Government’s second UCC security interest will ascend to first priority. 
 THE EQUIPMENT SHALL
BE INVENTORIED sufficiently to describe with certainty in the security agreement and associated UCC filing. The inventory shall be valued by appraisers acceptable to the Government. The inventory and appraisals shall be at the Borrower’s cost
and paid before this loan is closed, unless this requirement is specifically waived by the Government. 
 THE UCC SECURITY AGREEMENT SHALL
CONTAIN the following provisions: 
 (a) That the Government may enter upon any premises where the Equipment may be located and
marshal, secure, protect, and do all things necessary to preserve the Equipment immediately upon the Borrower’s default, but before any judicial action regarding such default; and 

(b) Such other provisions as the Government deems necessary to accomplish the intent and purpose of the Approval Letter and otherwise
protect its interest; and 
 (c) Omega Protein, Inc., and Omega Protein Corporation, agree that none of these corporations will
enter into any transaction or agreement with any party which will result in that party having a secured interest in the Equipment unless that party first enters into a written agreement, with provisions acceptable to the Government, that:

 (i) Except for purchase money lien holders, recognize the Government’s senior interest in, and sole rights to, the
Equipment or proceeds of the Equipment’s liquidation; and 
  

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 (ii) Agree not to interfere in any way with, but instead to cooperate in all reasonable ways
with, the Government entering upon any property owned or leased by the Borrower in order to marshal, secure, protect, and do all things necessary to preserve the Equipment. 

2. THE REAL PROPERTY includes: 

(a) A Deed of Trust on such property as more fully described in Exhibit A, attached hereto, owned by Borrower, together with all
improvements thereon which comprise the Borrower’s shoreside facility in Reedville, Virginia. 
 3. PREFERRED SHIP MORTGAGE: 

(a) A Preferred Ship Mortgage on the vessel GRANDE CHENIERE, O.N. 590692. 

4. THE GUARANTEE: An absolute and unconditional guarantee of repayment of the FFP Debt will be given to the Government by Omega Protein Corporation.

 ARTICLE II: ADDITIONAL COLLATERAL 

1. INDIVIDUAL TRANSFERABLE QUOTAS: Should a limited fisheries access system be initiated at some future date under which the Borrower is granted a
transferable fishery conservation and management allocation (including, but not limited to, allocations, permits, quotas, licenses, cage tags, or any other fisheries access restriction or right, however characterized, of whatsoever nature)
affecting, necessary for, or in any other way, however characterized, associated with any of the property included in the Collateral, the Borrower agrees to grant to the Government a full senior security interest in such allocation by whatsoever
means deemed by the Government to be appropriate (including, but not limited to, the Borrower’s execution of security agreements and the filing of financing statements under the UCC). Further, if the Borrower fails to do so, the Borrower agrees
that the Government may use, for the purpose of executing and otherwise perfecting whatever documents may be required to effect the grant to the Government of such a full security interest in such fisheries conservation and management allocation,
the attorney-in-fact authority conferred upon the Government by ARTICLE IX of this agreement. 
  

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 2. OTHER COLLATERAL: Any new, different, substitute or other collateral which may, from time to time, be
provided by the Borrower or the Guarantor to the Government, will be subject to all of the covenants and provisions of all of the documents executed in connection with this transaction, including, but not limited to the Deed of Trust, Security
Agreement, this Financial Agreement, the Promissory Note, the Approval Letter, and UCC security interests. 
 ARTICLE III:
GOVERNMENT’S PRIOR WRITTEN CONSENT REQUIRED 
 Without the prior written consent of the Chief, Financial Services Division, National
Marine Fisheries Service, which consent will not unreasonably be withheld, (1) The Borrower, the Principals, or the Guaranteeing Company may not take any of the actions prohibited by the Approval Letter dated December 1, 2005, and
November 5, 2009, or prohibited by any other of the loan documents. 
 ARTICLE IV: BORROWER’S OBLIGATIONS AND
COVENANTS 
 The Borrower shall be bound by and do, perform or discharge all of the following actions. 

1. NOTICES TO THE GOVERNMENT: within ten (10) days of its occurrence, but in no event more than 30 days after its occurance, Borrower and the
Guarantor must give the Government written notice of any of the following: 
 (a) Any pending litigation, business reverse,
casualty, loss, or any other matter which diminishes: 
 (i) its ability to service any debt actually or contingently owed the
Government; or 
 (ii) its ability to perform any other duty or obligation owed the Government; or 

(iii) its ability to fully and faithfully perform any covenant with the Government; or 

(iv) the value of any property or other assets pledged to the Government; or 

(v) the net worth of any party against whom the Government has recourse for this debt. 

 

 5 

 (b) The institution of any suit against the Borrower which demands $50,000 or more; or the
institution of any suit demanding $50,000 or more against any other person or entity that may adversely affect the Government’s interest hereunder, in the Promissory Note or otherwise. 

ARTICLE V: FINANCIAL REPORTING TO AND INSPECTIONS BY THE GOVERNMENT 

1. BORROWER AGREES TO PROVIDE THE GOVERNMENT WITHIN 20 DAYS FOLLOWING THE END OF EACH QUARTER of its tax or accounting years, a certified correct copy
of: 
 (a) a balance sheet; and 

(b) an income and expense statement for the preceding twelve months; and 

(c) an aging report of all receivables outstanding; and 

(d) an inventory report for all inventories maintained at the end of each year. 

2. CERTIFICATION OF FINANCIAL INFORMATION: Borrower agrees that: 

ANNUALLY: At the end of each fiscal year, said Article V, 1(a) through (d) will be compiled by independent certified public accountants who are
acceptable to the Government. 
 ALL ANNUAL financial reports required hereunder shall include a certification from the Borrower’s Chief
Financial Officer that either: 
 (a) There has been no default, as provided by the security instruments, during the reporting
period; or 
 (b) There has been a default, as provided by said security instruments, during the reporting period. In this case
the nature, extent, prospective consequences, and all other relevant details of such default shall be fully set forth in such certification. 

3. INCOME TAX RETURNS: All tax returns shall be timely
filed2 and an executed copy of Borrower’s Federal
Income Tax Return, along with all supporting schedules, must be delivered to the Government within 15 days of its filing or issuance. Borrower agrees to execute a 

 

	2
	Timely filing shall include valid extensions filed with the Internal Revenue Service. 

 

 6 

 
consent and waiver, valid so long as Borrower owes a debt to the Government, which allows the Internal Revenue Service to release directly to the Government, Borrower’s Federal Income Tax
Returns, whenever the Government requests same.3

 4. BORROWER TO DELIVER ALL REQUIRED FINANCIAL STATEMENTS, notices, returns or reports to the Government’s Southeast Regional Financial
Services Branch. All financial statements shall be signed and delivered within 90 days of the close of the fiscal or accounting year, or such quarter in such year, to which they relate. 

5. METHOD OF BOOKKEEPING: Borrower will, at all times, keep proper books of account according to generally accepted accounting principles, including
financial and operating statements that include schedules showing all compensation paid by the Borrower. 
 6. GOVERNMENT INSPECTIONS: Permit
the Government, or any representative selected by the Government, in such manner and at such times as the Government may require, to (a) make inspections and audits of any books, records, papers, or other
documents4 of whatsoever nature in the custody and control
of the Borrower, Guarantor, or any other entity, relating in any way to the financial or business condition or prospects of the Borrower, or Guarantor, including the making of copies thereof and extracts therefrom, and 

(b) make inspections and appraisals of any of the Borrower’s or Guarantor’s physical assets. 

7. BORROWER TO PAY THE COST OF ALL SUCH INSPECTIONS: The cost of all such inspections, audits, or appraisals shall be initially paid by the Government,
but the Borrower shall reimburse the Government for the full cost thereof within 30 days of the Government’s demand and all such amounts disbursed by the Government for such purpose shall, until fully repaid by the Borrower, be added to the
Borrower’s Promissory Note to the Government (payable on demand) and shall earn interest at the same rate as the other principal of the Borrower’s Promissory Note and shall be secured by the security instruments securing the
Borrower’s Promissory Note. 
 8. GUARANTOR’S OBLIGATIONS: Paragraphs 1, 2, 3, 4, 5, and 6, above, of this ARTICLE V, apply to the
Guarantor, with the only exception being in Paragraph 4, the Guarantor has 120 days to deliver financial statements. Additionally, the Guarantor shall provide to the Government, at the end of each tax year, a certified correct copy of its Statement
of Financial Condition, and if applicable its SEC-10K Report. 
  

	3
	Borrower agrees to execute IRS Form Nos. 4506 and 8821 or any other form necessary to implement the provisions of 26 USC §6103(c). Failure to do so constitutes an
event of default. 

	4
	Including but not limited to off-loading receipts, business transaction journals, etc. 

 

 7 

 ARTICLE VI: VIRGINIA LAW TO GOVERN 

To the extent not governed by the laws of the United States, all provisions of this Financial Agreement shall be construed, given effect, and enforced
according to the laws of the Commonwealth of Virginia. With respect to any claim or proceeding relating to this Financial Agreement, the Borrower and Guarantor hereby consent to and subject themselves to the jurisdiction of the state and federal
courts located in the Commonwealth of Virginia, and agree that the venue of any action or proceeding relating to this Financial Agreement shall lie exclusively in said states. The parties hereto acknowledge and agree, however, that in the event that
an action to foreclose a real property mortgage and security agreement or deed of, trust and security agreement is brought, it will be brought pursuant to the laws of the state where the real property is located and the parties hereto hereby consent
to and subject themselves to the jurisdiction of the courts of said state. 
 ARTICLE VII: DEFAULT 

1. THE OCCURRENCE OF ANY OF THE FOLLOWING CONSTITUTES AN EVENT OF DEFAULT: 

(a) ANY FAILURE TO OBSERVE, PERFORM, COMPLY WITH AND DISCHARGE ALL OF THE COVENANTS, CONDITIONS, AND OBLIGATIONS WHICH ARE IMPOSED ON:

 (i) BORROWER by the Approval Letter, dated November 5, 2009, this Title XI Financial Agreement, the Promissory
Note, dated March 9, 2010, the Deed of Trust dated March 9, 2010, Preferred Ship Mortgage dated March 9, 2010, and any other agreement or document executed in connection with this Financial Agreement and the
Promissory Note, concurrently or otherwise, inclusive of amendments thereto, in connection with this Financial Agreement, or subsequent amendment or agreement, regardless of whether or not the Borrower shall be a party to said agreement or document,
and such default shall continue for fifteen (15) days; or 
 (ii) ANY GUARANTOR by any Guaranty Agreement, or any other
agreement or document executed in connection with this transaction, whether or not the Borrower is party to said agreement; or 
  

 8 

 (b) ANY FAILURE TO PAY OR MAKE PAYMENTS ON: 

(i) INTEREST ON THE PROMISSORY NOTE when and as the same shall become due and payable as therein provided; or 

(ii) PRINCIPAL ON THE PROMISSORY NOTE when and as the same shall become due and payable, whether at maturity, by notice of
acceleration, or otherwise; 
 (iii) ANY OTHER AMOUNT DUE in connection with this transaction; or 

(c) FINANCIAL EVENTS: 

(i) Borrower makes a general assignment for the benefit of the Borrower’s creditors; or 

(ii) Borrower loses the right to do business, by forfeiture or otherwise; or 

(iii) A receiver or receivers of any kind whatsoever, whether appointed or not, in admiralty, bankruptcy law, common law, or equity
proceedings, and whether temporary or permanent, shall be appointed for property of the Borrower; or 
 (iv) PETITION OR OTHER
PROCEEDING OR ACTION IN BANKRUPTCY, regarding the BORROWER, is filed by the BORROWER or by creditors of the BORROWER; however, no proceeding or action in bankruptcy filed against BORROWER by its creditors shall constitute an event of default under
the Financial Agreement unless such proceeding or action has not been dismissed within 60 days of filing. ALL PARTIES TO THIS AGREEMENT ACKNOWLEDGE AND UNDERSTAND THAT IN THE EVENT THAT A PETITION IN BANKRUPTCY IS FILED BY ANY PARTY OR AN
INVOLUNTARY BANKRUPTCY PETITION FILED BY A THIRD PARTY IS NOT DISMISSED WITHIN 60 DAYS OF FILING, THAT THE FOLLOWING EVENT WILL OCCUR: 

1. THE GOVERNMENT WILL IMMEDIATELY ACCELERATE THE ENTIRE AMOUNT OUTSTANDING AND DEMAND IMMEDIATE PAYMENT THEREOF; AND 

2. ANY VESSEL THAT SECURES, IN WHOLE OR IN PART, THE SUM OWED THE GOVERNMENT WILL RETURN TO PORT AND NOT DEPART UNLESS ORDERED BY THE
BANKRUPTCY COURT. 
 (d) FAILURE TO MAINTAIN ANY OF THE INSURANCE COVERAGE as outlined in Paragraph (4): Insurance Requirements,
found on page 13 and 14 of the Approval Letter. 
 (e) A MISREPRESENTATION OR UNDISCLOSED FACT, deemed material by the
Government, made or omitted in any application, agreement, affidavit, or other document, submitted in connection with this transaction, on behalf of, or for the benefit of, or by the Borrower; or 

 

 9 

 (f) INSTITUTION OF ANY SUIT AGAINST THE BORROWER or others deemed by the Government to
affect adversely its interest hereunder, in the Promissory Note or otherwise; 
 (g) THE OCCURANCE OF ANY EVENT that would
adversely affect the ability of the Borrower or Guarantor to timely service the debt, actually or contingently, owed the Government or that would cause the Government to reasonably deem itself an insecure creditor. 

2. UPON OCCURRENCE OF AN EVENT OF DEFAULT, THE BORROWER AGREES, ACKNOWLEDGES AND CONSENTS TO the Government, within its authority or discretion, to take
any or all of the following steps, measures or actions, including but not limited to: 
 (a) Declare the Promissory Note to be
due and payable immediately and upon such declaration the entire principal of and interest on the Promissory Note, and any other sums owed to the Government, shall become and be immediately due and payable, and thereafter shall bear interest at
eighteen percent (18%) per annum unless such would violate applicable usury laws, if any, in which case, the maximum legal rate permitted by applicable laws shall prevail; provided, however, that if the Borrower shall have removed and remedied
each Event of Default within fifteen (15) days after the occurrence thereof, then in every such case, the Government shall waive any such Event of Default; but no such waiver shall extend to nor affect any subsequent or other Event of Default
nor impair any rights or remedies consequent thereon; and provided, further, that if at any time after the expiration of fifteen (15) days after any Event of Default shall have occurred, all Events of Default shall have been remedied and
removed and full performance made by the Borrower to the satisfaction of the Government and all installments of principal and interest in arrears (including interest at the rate per annum, as aforesaid) and the reasonable charges and expenses, if
any, of the Government, its agents and attorneys, shall have been paid (including interest at the rate per annum, as aforesaid), then and in every such case the Government may, in its discretion, waive any such Event of Default; and provided, also,
that no waiver hereunder shall extend to nor affect any subsequent or other Event of Default nor impair any rights or remedies consequent thereon; 

(b) BRING SUIT IN COURT OF COMPETENT JURISDICTION, at the discretion of the Government, to obtain judgment for any and all amounts due
under the Promissory Note, or otherwise hereunder, and collect the same out of any and all collateral of the Borrower; and/or 
  

 10 

 (c) FORECLOSE THE REAL ESTATE MORTGAGES AND SECURITY AGREEMENTS AND/OR PREFERRED SHIP
MORTGAGE AND SELL any real and/or personal property which secures the FFP Debt; and/or in the case of a Vessel, retake the Vessel without legal process wherever the same may be found, and the Borrower or other person in possession, forthwith upon
demand of the Government, shall immediately surrender to the Government possession of the Vessel, and, without being responsible for loss or damage, the Government may hold, lay-up, lease, charter, operate, or otherwise use the Vessel for such time
and upon such terms as it may deem to be for its best advantage, accounting only for the net profits, if any, arising from such use of the Vessel and charging against all receipts from the use of the Vessel, or from the sale thereof by court
proceeding or pursuant to subsection (e) below, all costs, expenses, charges, damages, or losses by reason of such use; and if at any time the Government shall avail itself of the right herein given it to retake the Vessel and shall retake it,
the Government shall have the right to dock the Vessel for a reasonable time at any dock, pier, or other premises of the Borrower without charge, or to dock it at any other place at the cost and expense of the Borrower; IT IS EXPRESSLY UNDERSTOOD
AND AGREED TO BY THE BORROWER THAT SURRENDER OF THE VESSEL UNDER THIS SECTION MUST BE AND WILL BE IMMEDIATE AND IN ACCORDANCE WITH THE DIRECTIONS OF THE GOVERNMENT. FAILURE OF THE BORROWER TO IMMEDIATELY COMPLY WITH THE GOVERNMENT’S DEMAND FOR
SURRENDER OF THE VESSEL WILL CAUSE THE POSSESSION OF THE VESSEL BY THE BORROWER (INCLUDING, BUT NOT LIMITED TO, POSSESSION AND CONTROL OF THE VESSEL BY A MASTER OR CREW MEMBER ON BOARD THE VESSEL) TO BE UNLAWFUL AND TO CONSTITUTE A CONVERSION OF THE
VESSEL, ITS APPURTENANCES AND EQUIPMENT, THEREBY SUBJECTING THE BORROWER (EXPRESSLY INCLUDING, IF APPLICABLE, ITS OFFICERS AND DIRECTORS) TO ALL FINES, PENALTIES AND ACTIONS WHICH THE GOVERNMENT DEEMS APPLICABLE AND APPROPRIATE. SHOULD THE BORROWER
CONTINUE TO OPERATE, POSSESS OR CONTROL THE VESSEL CONTRARY TO THE GOVERNMENT’S DIRECTIONS AND THE PROVISIONS HEREIN, THEN THE GOVERNMENT SHALL, IN ADDITION TO ANY OTHER RIGHTS AND REMEDIES AT LAW AND IN EQUITY, BE ENTITLED TO A TEMPORARY
RESTRAINING ORDER AND/OR ORDER FOR INJUNCTIVE RELIEF NECESSARY TO GAIN COMPLIANCE HEREWITH, IN ADDITION TO EXPRESSLY CONSENTING THAT THE INJURY AND DAMAGE RESULTING FROM BREACH HEREOF WOULD BE IMPOSSIBLE TO MEASURE MONETARILY, BORROWER EXPRESSLY
WAIVES ANY DEFENSE BASED UPON AN ALLEGED EXISTENCE OF AN ADEQUATE REMEDY AT LAW. 
 (d) Foreclose this Mortgage pursuant to the
terms and provisions of the 46 USC, Chapter 313, or by other judicial process as may be provided in the statutes; and 
  

 11 

 (e) In addition to any and all other rights, powers, and remedies elsewhere in this Mortgage
or by law granted to and conferred upon the Government, sell the Vessel upon such terms and conditions as it may deem to be for its best advantage, including the right to sell and dispose of the Vessel free from any claim of or by the Borrower, at
public sale, by sealed bids or otherwise, after first giving notice of the time and place of sale, with a general description of the property by first publishing notice of any such sale for ten (10) consecutive days, except Sundays, in some
newspaper of general circulation at the place designated for such sale, and by mailing notice of such sale to the Borrower at its last known address; such sale may be held at such place and at such time as the Government in such notice may have
specified, or may be adjourned by the Government from time to time by announcement at the time and place appointed for such sale or for such adjourned sale, and without further notice of publication and the Government may make any such sale at the
time and place to which the same shall be so adjourned; and any such sale may be conducted without bringing the Vessel to the place designated for such sale and in such manner as the Government may deem to be for its best advantage, and the
Government may become the purchaser at any such sale, and shall have the right to credit on the purchase price any or all sums of money due to the Government under the Promissory Note, or otherwise hereunder. THE BORROWER EXPRESSLY AGREES AND
ACKNOWLEDGES THAT SALE OF THE VESSEL PURSUANT TO THIS SECTION WILL NOT (NOTWITHSTANDING FEDERAL OR STATE LAW TO THE CONTRARY, IF ANY, ) IMPAIR OR LIMIT THE GOVERNMENT’S LEGAL RIGHT TO COLLECT FROM THE BORROWER OR GUARANTOR ANY DEFICIENCY
REMAINING AFTER THE SALE. IF ANY SUCH FEDERAL OR STATE LAWS OR LEGAL PRECEDENTS MAY BE CONSTRUED TO LIMIT THE GOVERNMENT’S RIGHTS TO COLLECTION OF SAID DEFICIENCY FROM THE BORROWER, THEN BORROWER HEREBY EXPRESSLY WAIVES, RELINQUISHES AND
FOREVER GIVES UP THE RIGHT TO AVAIL ITSELF OF SUCH LAWS AND/OR DEFENSES. 
 (f) RETAKE AND/OR SELL THE EQUIPMENT WITHOUT LEGAL
PROCESS as provided by the Real Estate Mortgages, Security Agreements, and Preferred Ship Mortgages, or any other document which has been executed by or on behalf of the Borrower; and 

(g) Make demand upon, institute action against, foreclose collateral, if any, or make any attempt of any nature to collect outstanding
sums from any Guarantor, whether or not similar efforts have been made against the Borrower. 
  

 12 

 ARTICLE VIII: TITLE XI FINANCIAL AGREEMENT GOVERNS; SEVERABILITY 

1. To the extent that any of the terms and conditions of this Financial Agreement are inconsistent or in contradiction with the terms and conditions of
any other agreement between the Government and the Borrower, including but not limited to previously executed Title XI Financial Agreements, then the terms of this Financial Agreement shall govern, otherwise, all such terms and conditions of
such other agreements will continue with full force and effect. 
 2. The unenforceability or invalidity of any provision(s) of this Title XI
Financial Agreement shall not render any other provision(s) herein unenforceable or invalid. 
 ARTICLE IX: POWER OF ATTORNEY

 Borrower hereby irrevocably appoints the Government the true and lawful attorney of the Borrower, in its name and stead to execute any
other document necessary to perfect the Government’s security interests regarding this transaction and/or all aspects of the FFP Debt. 

ARTICLE X: ENVIRONMENTAL HAZARD INDEMNIFICATION 

Borrower and Guarantor hereby agree to the following with respect to any environmental hazards or contamination associated with the Collateral:

 1. At closing, Borrower must certify in writing that, to the best of its knowledge, there are currently no defects or environmental hazards
on or about the Collateral. Notwithstanding this, at closing, Borrower and Guarantor will execute a Certification and Indemnification Agreement Regarding Environmental Matters which provides that they shall, jointly and severally, be liable for any
and all contamination, cleanup, and environmental actions against the Collateral and that they are, jointly and severally, liable for all costs and claims associated with or resulting from any claim, cleanup, or lien imposed against any of the
Collateral. 
 2. That Borrower and Guarantor will hold the Government harmless from any claim or duty arising from environmental defects or
hazards associated with the Collateral which arise at any time before, during or following conclusion of this transaction. 
 In the event this
loan is not closed because of the discovery of such defects or environmental hazards previously unknown to Borrower, the Government will refund the commitment fee less all costs incurred by the Government in attempting to close. 

IN WITNESS WHEREOF, the Borrower and the Guarantor have executed this Title XI Financial Agreement. 

 

 13 

			
	GOVERNMENT:
	UNITED STATES OF AMERICA
	 Acting by and through the Secretary of Commerce National Oceanic and Atmospheric Administration National Marine Fisheries
Service
 Financial Services Division

		
	By:	 	  

		
	Title:	 	 Chief, Financial Services Branch Southeast Region

		
	Date:	 	  

  

									
		 		 		 	BORROWER: OMEGA PROTEIN, INC.
	Attest:	 		 		 	
					
	By:	 	 /s/ John Held
	 		 	By:	 	 /s/ Robert W. Stockton

					
	Title:	 	 Vice President
	 		 	Title:	 	 Vice President and Treasurer

					
	Date:	 	 May 25, 2010
	 		 	Date:	 	 May 25, 2010

				
		 		 		 	GUARANTOR: OMEGA PROTEIN CORPORATION
	Attest:	 		 		 	
					
	By:	 	 /s/ John Held
	 		 	By:	 	 /s/ Robert W. Stockton

					
	Title:	 	 Vice President
	 		 	Title:	 	 Executive Vice President and Chief Financial Officer

					
	Date:	 	 May 25, 2010
	 		 	Date:	 	 May 25, 2010

 

 14

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