Document:

exv10w5

 

Exhibit - 10.5

EXECUTIVE AGREEMENT

          WHEREAS, Timothy J. Benson (the “Executive”) is the Chief Financial Officer of Factory Card &
Party Outlet Corp., a Delaware corporation (the “Company”);

          WHEREAS, the Executive is a participant in the Company’s Amended and Restated Executive
Severance Plan (the “Executive Severance Plan”);

          WHEREAS, in connection with the proposed acquisition (the “Merger”) of the Company pursuant to
an Agreement and Plan of Merger (the “Merger Agreement”)
dated as of September 17, 2007, by and
among Amscan Holdings, Inc., a Delaware corporation (“Parent”), Amscan Acquisition, Inc., a
Delaware corporation and a direct wholly owned subsidiary of Parent (“Newco”) and the Company, the
Company shall become a wholly owned subsidiary of Parent; and

          WHEREAS, the Executive Severance Plan shall remain in effect on and after the consummation of
the transactions contemplated by the Merger Agreement, with such changes as may be effected by this
Agreement, and, in connection therewith, the Executive shall continue to serve as Chief Financial
Officer of the Company.

          NOW THEREFORE, in consideration of the mutual promises contained herein, the Executive, Parent
and the Company agree as follows:

          1. The Executive shall continue employment with the Company as an at-will employee following
the closing of the Merger (the “Closing”), it being understood that the Company shall thereupon be
a direct or indirect subsidiary of Parent and/or AAH Holdings Corporation (“Holdings”). Executive
shall serve as Chief Financial Officer of the Company. The Executive shall report to the President
and Chief Executive Officer of the Company. The Executive hereby agrees that changes to his
duties, responsibilities and authorities caused solely and as a direct and proximate result of the
Company becoming a privately held subsidiary of Parent and/or Holdings will not in and of itself
constitute “Good Reason” within the meaning of Section 1.2 of the Executive Severance Plan. The
Executive will have such duties, responsibilities and authorities as are prescribed by the
President and Chief Executive Officer of the Company from time to time and normally associated with
those of chief financial officers of retail businesses of similar size in the United States. For
the avoidance of doubt, Executive’s duties, responsibilities and authority will include, but not be
limited to: (i) preparation of budgets of the Company for recommendation to the President and CEO
of the Company, and (ii) selection, retention and termination of employees of the Executive’s
department.

          2. On the date of the Closing, Parent shall cause to be granted to the Executive nonqualified
stock options to purchase 24 shares of common stock of Holdings (such options, the “New Options”),
at an exercise price equal to the fair market value of a share of common stock at the date of
grant, which is expected to be $17,500 per share. One-half (50%) of the New Options shall be
subject to vesting in equal annual installments over a period of 5 years following the date of
grant, and the remaining one-half (50%) of the New Options shall be subject to

 

 

performance vesting, in each case on the terms set forth in the attached form of Option
Agreements (attached as Exhibit A-1 and Exhibit A-2). Such Option Agreements shall
be granted under and pursuant to the terms of the AAH Holdings Corporation 2004 Equity Incentive
Plan (the “AAH Option Plan”), in or substantially in the form of the attached options certificates.
Notwithstanding anything else in the Executive Severance Plan (including Section 3.5 thereof) or
in any other agreement, the New Options shall vest on such terms as provided in such Option
Agreements.

          3. Contemporaneous with the execution of this Agreement, the Company shall amend the
Executive Severance Plan in the form attached hereto as Exhibit B (subject to the terms of this
Agreement, including the last sentence of Section 2).

          4. The parties hereto acknowledge and agree that the transactions contemplated by the Merger
Agreement shall constitute a “Change in Control” (as defined in the Executive Severance Plan) and
that if the Executive becomes entitled to severance benefits under the Executive Severance Plan
within two years after the consummation of the transactions contemplated by the Merger Agreement,
the “Severance Period” (as defined in the Executive Severance Plan) shall be eighteen months.

          5. This Agreement shall become effective on the Closing (as defined in the Merger Agreement)
and shall be of no force or effective if the Merger Agreement is terminated in accordance with its
terms.

          IN WITNESS WHEREOF, the parties have executed this Agreement, effective as of this 17th day of
September, 2007.

	 	 	 	 	 
	 	Amscan Holdings, Inc.

 	 
	 	By:  	/s/ Robert J. Small
 	 
	 	 	Name:  	Robert J. Small 	 
	 	 	Title:  	Chairman of the Board 	 
	 
	 	Factory Card and Party Outlet Corp.

 	 
	 	By:  	/s/ Gary Rada
 	 
	 	 	Name:  	Gary Rada 	 
	 	 	Title:  	CEO 	 
	 
	 	Executive

 	 
	 	 	/s/ Timothy J. Benson	 
	 

-2-exv4w1

 

EXHIBIT 4.1

SUPPLEMENTAL INDENTURE

     SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of September 13,
2007, but effective as of August 29, 2007, among Advanced Oilwell Services, Inc. (the
“Guaranteeing Subsidiary”), a subsidiary of SESI, L.L.C., a Delaware limited liability
company (the “Company”), the Company, the other Guarantors (as defined in the Indenture
referred to herein) and The Bank of New York Trust Company, N.A., as trustee under the Indenture
referred to below (the “Trustee”).

W I T N E S S E T H

     WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the
“Indenture”), dated as of May 22, 2006 providing for the issuance of 6?% Senior Notes due
2014 (the “Notes”);

     WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary
shall execute and deliver to the Trustee a supplemental indenture pursuant to which the
Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the
Notes and the Indenture on the terms and conditions set forth herein (the “Note
Guarantee”); and

     WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and
deliver this Supplemental Indenture.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the
Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes
as follows:

     1. CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the
meanings assigned to them in the Indenture.

     2. AGREEMENT TO GUARANTEE. The Guaranteeing Subsidiary hereby agrees to provide an
unconditional Guarantee on the terms and subject to the conditions set forth in the Note Guarantee
and in the Indenture including but not limited to Article 10 thereof.

     3. NO RECOURSE AGAINST OTHERS. No past, present or future director, officer, organizer,
employee, manager, incorporator, stockholder, member or agent of the Guaranteeing Subsidiary, as
such, shall have any liability for any obligations of the Company or any Guaranteeing Subsidiary
under the Notes, any Note Guarantees, the Indenture or this Supplemental Indenture or for any claim
based on, in respect of, or by reason of, such obligations or their creation. Each Holder of the
Notes by accepting a Note waives and releases all such liability. The waiver and release are part
of the consideration for issuance of the Notes. Such waiver may not be effective to waive
liabilities under the federal securities laws and it is the view of the SEC that such a waiver is
against public policy.

     4. NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED
TO CONSTRUE THIS SUPPLEMENTAL

 

 

INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT
THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     5. COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture.
Each signed copy shall be an original, but all of them together represent the same agreement.

     6. EFFECT OF HEADINGS. The Section headings herein are for convenience only and shall not
affect the construction hereof.

     7. THE TRUSTEE. The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the
recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary and
the Company.

[Signature pages follow.]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly
executed and attested, all as of the date first above written.

	 	 	 	 	 
	 	ADVANCED OILWELL SERVICES, INC. 

 	 
	 	By:  	/s/ Robert S. Taylor
 	 
	 	 	Name:  	Robert S. Taylor                                                         	 
	 	 	Title:  	Vice President and Treasurer 	 
	 	 	 	 
	 
	 	SESI, L.L.C. 

 	 
	 	By:  	SUPERIOR ENERGY SERVICES, INC.,
 	 
	 	 	its Managing Member                                                             	 
	 	 	 
	 	By:  	/s/ Robert S. Taylor
 	 
	 	 	Name:  	Robert S. Taylor 	 
	 	 	Title:  	Executive Vice President and
Chief Financial Officer 	 
	 
	 
	 	SUPERIOR ENERGY SERVICES, INC. 

 	 
	 	By:  	/s/ Robert S. Taylor
 	 
	 	 	Name:  	Robert S. Taylor                                                          	 
	 	 	Title:  	Executive Vice President and
Chief Financial Officer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	1105 PETERS ROAD, L.LC 

BLOWOUT TOOLS, INC. 

CONCENTRIC PIPE AND TOOL RENTALS, L.L.C 

CONNECTION TECHNOLOGY, L.L.C. 

CSI TECHNOLOGIES, LLC 

DRILLING LOGISTICS, L.L.C 

F & F WIRELINE SERVICES, L.L.C. 

FASTORQ, L.L.C. 

H.B. RENTALS, L.C. 

INTERNATIONAL SNUBBING SERVICES, L.L.C 

J.R.B. CONSULTANTS, INC. 

NON-MAGNETIC RENTAL TOOLS, L.L.C. 

PROACTIVE COMPLIANCE, L.L.C. 

PRODUCTION MANAGEMENT INDUSTRIES, L.L.C. 

SEGEN LLC 

SELIM LLC 

SEMO, L.L.C. 

SEMSE, L.L.C. 

SPN RESOURCES, LLC 

STABIL DRILL SPECIALTIES, L.L.C. 

SUB-SURFACE TOOLS, L.L.C. 

SUPERIOR CANADA HOLDINGS, INC. 

SUPERIOR ENERGY SERVICES, L.L.C. 

SUPERIOR INSPECTION SERVICES, INC. 

UNIVERSAL FISHING AND RENTAL TOOLS, INC. 

WARRIOR ENERGY SERVICES CORPORATION 

WILD WELL CONTROL, INC. 

WORKSTRINGS, L.L.C. 

 	 
	 	By:  	/s/ Robert S. Taylor
 	 
	 	 	Name:  	Robert S. Taylor                  	 
	 	 	Title:  	Authorized Representative 	 
	 
	 
	 	SE FINANCE L.P. 

 	 
	 	By:  	SEGEN, L.L.C., as general partner
 	 
	 	 	 	 
	 	By:  	/s/ Robert S. Taylor
 	 
	 	 	Name:  	Robert S. Taylor                  	 
	 	 	Title:  	Authorized Representative 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE BANK OF NEW YORK TRUST COMPANY, 

as Trustee 

 	 
	 	By:  	/s/
Christie Leppert	 
	 	 	Name:  	Christie Leppert	 
	 	 	Title:  	Assistant Vice President

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