Document:

Sixth Amendment to Credit Agreement dated December 20, 2004

 EXHIBIT 10.49 
  
 SIXTH AMENDMENT TO CREDIT AGREEMENT 
  
 The Sixth Amendment to Credit Agreement is made as of the 20th day of December, 2004, by and between Banknorth, N.A. (“Lender”), a National Association, with offices at 237 Main Street, Wareham, Massachusetts
02571 and Benthos, Inc. (“Borrower”), a Massachusetts corporation with its principal place of business at 49 Edgerton Drive, North Falmouth, Massachusetts 02556. 
  
 RECITALS: 
  

	 	A.	 Borrower and Lender entered into a certain Credit Agreement dated August 18, 1999, as amended by a First Amendment to Credit Agreement and Amendment to Revolving
Note and Term Note dated March 23, 2001, as further amended by Second, Third, Fourth and Fifth Amendments to Credit Agreement dated December 12, 2001, January 29, 2003, November 3, 2003, and January 7th, 2004, respectively, (the “Credit Agreement”) regarding: (i) a Commercial Variable Rate Revolving or Draw Note dated August 18, 1999, as amended by
an Amendment dated December 8, 2000, a Second Amendment dated March 23, 2001, a Third Amendment dated July 9, 2001, a Fourth Amendment dated December 12, 2001, a Fifth Amendment dated January 29, 2003 and a Sixth Amendment dated January
7th, 2004 and a Seventh Amendment dated December 20, 2004 (the “Revolving Note”), (ii) a Commercial
Variable Rate Promissory Note dated August 18, 1999, as amended by an Amendment dated October 17, 2000, a Second Amendment dated March 23, 2001, a Third Amendment dated December 12, 2001, a Fourth Amendment dated November 3, 2003 and a Fifth
Amendment dated December 20, 2004 (the “Term Note”), and (iii) other instruments and agreements executed in conjunction therewith, including without limitation a certain Partial Release of Mortgage, dated October 16th, 2003, filed with the Barnstable County Registry District of the Land Court as Document Number 946,238 on October
27th, 2003, and 

 
recorded with the Barnstable County Registry of Deeds in Book 17,848, Page 162, executed and delivered by the Bank in connection with the sale by the
Borrower and certain affiliates of the Borrower of a portion of the premises located at Edgerton Drive, Route 28 and Route 28A, Falmouth, Barnstable County, Massachusetts. 
  

	 	B.	Borrower and Lender now desire to further amend the Credit Agreement and to further amend the Revolving Note as set forth herein and in a separate amendment of even date herewith to
said Revolving Note. 

 AGREEMENTS: 
  
 Now, therefore, in consideration of the foregoing and for other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the Lender and the Borrower hereby agree as follows: 
  

	 	1.	Capitalized terms used herein shall have the meaning given to them in the Credit Agreement unless separately defined herein. 

  

	 	2.	As of December 20, 2004, the outstanding principal balance of the Revolving Note was $0 and the outstanding principal balance of the Term Loan under the Term Note was
$464,666.74. 

  

	 	3.	The definition of “Expiration Date” as set forth in Section 1.01 of the Credit Agreement is hereby amended to be January 31, 2006. 

  

	 	4.	Section 6.02 of the Credit Agreement is hereby amended by adding the following paragraph: 

  
 “(e) assurance in form and substance satisfactory to Lender from the Borrower’s auditors that the
Borrower’s year end September 30, 2004 audit will not contain a “going concern opinion”. 
  

	 	5.	Section 8.02(a) of the Credit Agreement is hereby deleted and replaced with the following paragraph: 

  

	 	a.	“The Borrower will maintain a ratio of Current Assets to Current Liabilities of greater than or equal to: 

  

	 	(i)	1.5 to 1.00 as of December 31, 2004 

  

	 	(ii)	1.5 to 1.00 as of March 31, 2005 

  

	 	(iii)	1.5 to 1.00 as of June 30, 2005; and 

  

	 	(iv)	1.5 to 1.00 as of September 30, 2005.” 

	 	6.	Section 8.02(b) of the Credit Agreement is hereby deleted and replaced with the following: 

  

	 	b.	“The Borrower shall maintain a ratio of Total Debt to Tangible Net Worth less than or equal to: 

  

	 	(i)	1.15 to 1.00 as of December 31, 2004 

  

	 	(ii)	1.15 to 1.00 as of March 31, 2005 

  

	 	(iii)	1.15 to 1.00 as of June 30, 2005, and 

  

	 	(iv)	1.15 to 1.00 as of September 30, 2005. 

  
 Tangible Net Worth shall equal total assets minus total liabilities minus intangible assets.” 
  

	 	7.	Section 8.02(c) of the Credit Agreement is hereby deleted and replaced with the following: 

  

	 	c.	“The Borrower shall maintain a ratio of Cash Flow to Debt Service Payments, which on a cumulative basis for the applicable period shall be greater than or equal to the
following: 

  

	 	(v)	1.20 to 1.00 for quarter ending December 31, 2004 

  

	 	(vi)	1.20 to 1.00 for quarter ending March 31, 2005 

  

	 	(vii)	1.20 to 1.00 for quarter ending June 30, 2005 

  

	 	(viii)	1.20 to 1.00 for quarter ending September 30, 2005. 

  
 This ratio will be calculated on a cumulative basis and will be determined as follows: (x)Net Profit after taxes (a) plus interest expense, (b) plus
seventy-five percent (75%) of depreciation, (c) plus amortization (y) divided by interest expense plus the current maturity of principal for the year to date.” 
  

	 	8.	Section 11.01(m) of the Credit Agreement is amended by deleting “September 20, 2003” and inserting “September 30, 2004” in its place.

  

	 	9.	Except as provided herein, the Credit Agreement, as previously amended, shall remain unchanged. The Credit Agreement as previously amended and as further amended hereby is hereby
ratified and confirmed. 

					
	 Witness:
	  	 BENTHOS, INC.

		
	 /s/ Robert J. Mulvaney

	  	 /s/ Ronald L. Marsiglio

	 Robert J. Mulvaney
	  	 Name:
	 	 Ronald L. Marsiglio

	 	  	 Title:
	 	 Chief Executive Officer and President

		
	 Witness:
	  	 BENTHOS, INC.

		
	 /s/ Robert J. Mulvaney

	  	 /s/ Francis E. Dunne, Jr.

	 Robert J. Mulvaney
	  	 Name:
	 	 Francis E. Dunne, Jr.

	 	  	 Title:
	 	 Vice President, Treasurer and Chief

	 	  	 	 	 Financial Officer

		
	 Witness:
	  	 BANKNORTH, N.A.

		
	 /s/ Kevin Holmes

	  	 /s/ Timothy F. Kelleher III

	 Kevin Holmes
	  	 Name:
	 	 Timothy F. Kelleher III

	 	  	 Title:
	 	 Senior Vice PresidentAnnual Short-Term Incentive Plan

			
	 	  	 EXHIBIT 10.1

		
	 	  	Annual Short-Term
Bonus Plan
		
	 	  	Plan Document

  
 El Paso Electric Company

  

 Plan Overview 
  
 Purpose 
  
 Short–term incentives (annual variable pay) serve to communicate, align, and pay for contributions toward organizational objectives and performance goals. The objectives for the El Paso Electric Company
(“EPE”) Plan are to: 
  

	 	•	 	Develop a common understanding of the EPE’s initiatives, objectives, and goals for the coming year; 

  

	 	•	 	Develop clear expectations and understanding of an individual’s contribution to overall EPE’s goals; 

  

	 	•	 	Reward employees when goals are obtained; 

  

	 	•	 	Provide opportunity to earn a competitive level of incentive pay for efforts toward achieving corporate and individual performance goals; and 

  

	 	•	 	Compensate employees at the 50th percentile through annual incentives in years when the EPE and the individual achieve target level performance; the incentive plan should offer
upside potential for years in which EPE and individual performance exceed expectations. 

  
 Plan Name 
  
 Annual Short-Term Bonus Plan
(“the Plan”) 
  
 Effective Date 
  
 The Plan is effective as of January 1, 2005, as approved by the Compensation Committee of
the Board of Directors of EPE (the “Compensation Committee”). 
  
 Eligibility 
  
 Eligible employees for the Plan include all
regular full-time and part-time employees of EPE, except temporary and Mirasol employees unless otherwise determined by the Compensation Committee. 
  
 The Compensation Committee may revise or amend the eligibility criteria from time to time, which may be on the recommendation of EPE management. 
  
 Participation 
  
 Newly eligible employees begin participating in the Plan during the calendar year in which they become eligible. Overall awards will be
prorated based upon active employment with EPE. 
  
 Award Opportunities

  
 Each eligible plan participant will be assigned a target award
opportunity, which will be communicated at the beginning of the plan year. Target award opportunities will be expressed as a percentage of base salary for 

  

 
exempt employees and as a percentage of total earnings, which includes overtime for nonexempt employees. The target awards are intended to deliver
competitive incentive opportunities that are generally in line with the desired competitive compensation levels for EPE. The target award represents the level of bonus payment the participant may earn in the event plan performance is achieved at
“target,” and acceptable organizational standards are met. 
  
 In
addition, a threshold and maximum award level will be established (as a percent of target) adjusting payouts for performance levels that exceed or fall below expectations. 
  
 The annual award opportunities for the anticipated current plan year participants are summarized in Appendix A attached hereto
(with the Compensation Committee to establish the annual award opportunities for future years by resolution). 
  
 Performance Measurement 
  
 Near the
beginning of each calendar year, senior management will establish and communicate the specific range of performance objectives for EPE. The goals and key performance factors will be recommended by management and approved by the Compensation
Committee. 
  
 At the end of the calendar year, the overall performance against
these goals will be assessed and the resulting incentive amounts will be calculated. The formula calculation will be applied in a consistent manner across EPE, and will be communicated to employees. The Compensation Committee will review and approve
the aggregate payment of the final awards. 
  
 Performance Measures

  
 The following three elements of performance will be measured, unless
otherwise determined by the Compensation Committee for any year: 
  

			
	Financial Performance	  	 •      Earnings Per Share (“EPS”)

		
	Operational Performance	  	 •      Customer Satisfaction
  
 •      Safety

		
	Individual Performance	  	 •      Performance Rating (through EPE Performance Management process)

  

 Each measure will be weighted as a percent of total incentive opportunity. The following table illustrates the
performance measures used and the corresponding weighting of each, unless otherwise determined by the Compensation Committee for any year: 
  

							
	 Performance Measures

	  	Executives,
Managers, Supervisors
and Employees
(Low Risk)

	 	 	Medium and High Risk
Supervisors and
Employees

	 
	 Financial Performance
	  	 	 	 	 	 
	 EPS
	  	70	%	 	70	%
			
	 Operational Performance
	  	 	 	 	 	 
	 Customer Satisfaction
	  	25	%	 	30	%
	 Safety
	  	5	%	 	Quarterly Safety Plan1	 
			
	 Total (as a % of target)
	  	100	%	 	100	%

  
 Performance Goals 

 
 The table attached hereto as Appendix B outlines the actual performance
measures defined for the current plan year (with the Compensation Committee to establish the performance measures for future years by resolution). The EPS threshold acts as a plan trigger; no plan payouts will be made unless EPE achieves at least
the EPS recommended by management and approved by the Compensation Committee. Safety will only be measured in the Plan for executives, managers, and low risk employees. Medium and high-risk employees are rewarded for safety on the Company’s
quarterly safety plan. The Compensation Committee may interpolate between defined levels for financial performance only. 
  
 Individual Performance Modifier 
  
 An individual performance modifier will be applied to the calculation of financial and operational performance. Individual performance is defined as achievement of goals
and objectives as specified through EPE’s performance management process. The total percent of calculated award is adjusted depending upon the assigned multiplier, unless otherwise determined by the Compensation Committee. 
  

			
	 Individual Overall Rating

	  	Multiplier
Range

	 Top 20% of performers
	  	1.30-1.50
		
	 Next 35% of performers
	  	0.95-1.15
		
	 Next 35% of performers
	  	0.65-0.85
		
	 Bottom 10% of performers
	  	0.00

	1	Overall bonus paid is reduced by quarterly safety bonuses paid during performance period under the Company’s quarterly safety plan. 

  

 Interpolation of Performance and Payouts 
  
 Financial performance and payout is generally calculated by interpolation between defined levels of performance. The table attached hereto
as Appendix C demonstrates how the financial interpolation would work in the Plan. 
  
 Example Calculations 
  
 Attached hereto
as Appendix D are examples of the calculation of awards for the current year based on specific employee and performance profiles. 
  
 Funding 
  
 The Plan will be considered a self-funded plan. Incentives will be accrued for accounting purposes on a quarterly basis based on EPE performance at that point in time. 
  
 Award Payouts 
  
 If performance achievement is met, all payouts of awards under the Plan will be made in cash (subject to applicable taxes and withholding),
as soon as possible, after calendar year results have been finalized and approved by the Compensation Committee. The payouts will not be included in the definition of compensation for welfare and qualified benefit plan purposes. 
  
 Participants must be employed with EPE on the last day of the fiscal year as well as on the
Plan payout date in order to receive an award. 
  
 Payments will be made on an
annual basis, subject to plan provisions. 
  
 Employment Changes

  
 Generally, participants must be employed with EPE on the date bonuses are
paid in order to receive any award. Participants who terminate during the calendar year due to death, disability, or retirement (separation at age 55 or over) will receive a prorated portion of any payout paid based on the salary plus overtime
earnings for actual period of time worked during the calendar year. The individual performance modifier will be based on the prior year performance rating. Participants that are discharged “for cause” will not be entitled to an
award payment. 
  
 Participation in the Plan for a given plan year will not be
construed to confer a right to participate in the Plan in any subsequent year, or the right to continue in EPE’s employment. 
  
 Governance 
  
 Senior management and the Compensation Committee will be responsible for the administration and governance of the Plan. The decisions of the Compensation Committee shall be conclusive and binding on all participants.

  
 Amendment, Modification, or Termination of Plan 
  
 The EPE, by action of its Compensation Committee, reserves the right to amend, modify, or
terminate the Plan at any time. 
  

  
 APPENDIX A 

 
 The annual award opportunities for the anticipated 2005 plan year participants are
summarized below: 
  

							
	 Grade/Level

	  	Threshold

	  	Target

	  	Maximum

	 CEO
	  	 	  	 	  	 
	 EVPs / SVPs
	  	 	  	 	  	 
	 VPs
	  	 	  	 	  	 
	 Other Executives
	  	 	  	 	  	 
	 *13 -15
	  	 	  	 	  	 
	   4 -12
	  	 	  	 	  	 
	 N4-N13
	  	 	  	 	  	 
	 Bargaining Unit
	  	 	  	 	  	 

  

	*	Employees in Grades 11 – 12 in a position with “Manager” in the title will have the same award opportunity as those in Grades 13 - 15.

  

  
 APPENDIX B 

 
 2005 Performance Goals 
  
 The table below outlines the actual performance measures defined for the 2005 plan year. The
EPS threshold acts as a plan trigger; no plan payouts will be made unless EPE achieves at least $             EPS. Safety will only be measured in the Plan for executives, managers,
and low risk employees. Medium and high-risk employees are rewarded for safety on the Company’s quarterly safety plan. The Compensation Committee may interpolate between defined levels for financial performance only. 
  

									
	 Measure

	  	 Definition

	  	Performance Level

	  	  	Threshold

	  	Target

	  	Maximum

	 Financial
	  	EPS	  	 	  	 	  	 
					
	 Operational
 (Customer Satisfaction)
	  	 Customer Satisfaction
 Survey Results
	  	 	  	 	  	 
					
	 Operational
 (Safety)
	  	 •      Lost Time incidents
  
 •      Total
First Aid and Medical incidents
  
 •      Chargeable Vehicle Accidents
	  	 	  	 	  	 

  

  
 APPENDIX C 

 
 Interpolation of Performance and Payouts 
  
 Financial performance and payout is generally calculated by interpolation between defined
levels of performance. The table following is how the financial interpolation would work in the Plan. 
  

											
	 Actual EPS

	  	 As a Percent
 of Target
	  	Level of Payout as a % of Pay

	  	 
	  	 Level of
 Performance

	  	Grade Exempt 12
and Below Plus
All Nonexempt
and Bargaining
Unit Employees

	  	Managers Grade
13-15

	  	Executives 1

	  	 
	 	  	 	  	 	  	 	  	 	  	Threshold
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	Target
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	Maximum
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 

  

 Interpolation of Performance and Payouts cont. 
  

											
	 	  	 As a Percent
 of Target
	  	Level of Payout as a % of Pay

	  	 
	 Actual EPS

	  	 Level of
 Performance

	  	Executives 2

	  	Executives 3

	  	CEO

	  	 
	 	  	 	  	 	  	 	  	 	  	Threshold
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	Target
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	Maximum
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 
	 	  	 	  	 	  	 	  	 	  	 

  

  
 APPENDIX D 

 
 2005 Example Calculation 
  

			
	 Employee Profile
	  	Performance Profile
		
	 Exempt Employee
	  	Corporate EPS: $____ (between threshold and target)
		
	 Low Risk
	  	Customer Satisfaction Score: ____ (at target)
		
	 Base Salary: $_________
	  	Safety: Target Level Performance
		
	 Target Opportunity %:         %
	  	Individual Performance: Top 20% Performer

  
 Target Opportunity
Award 
  

									
	__________	  	x	  	_________%	  	=	  	$__________
	 Eligible Pay
	  	 	  	Target Opp. %	  	 	  	 

  
 Financial
Performance Award 
  

													
	$__________	  	x	  	_______%	  	x	  	_______%	  	=	  	$__________
	 Eligible Pay
	  	 	  	Fin. Perf. %	  	 	  	Weighting	  	 	  	 

  
 Operational
Performance Award 
  

													
	$__________	  	x	  	___________%	  	x	  	_________%	  	=	  	$__________
	 Eligible Pay
	  	 	  	Cust. Sat. Perf.	  	 	  	Weighting	  	 	  	 
							
	$__________	  	x	  	__________%	  	x	  	_________%	  	=	  	$__________
	 Eligible Pay
	  	 	  	Safety Perf.	  	 	  	Weighting	  	 	  	 

  

			
	Total Operational Performance Award	  	$__________

  
 Total Award

  

																					
	[	  	$__________	  	+	  	$______________	  	=	  	$__________	 	]	  	x	  	____________	  	=	  	$___________
	 	  	Fin, Award	  	 	  	Total Oper. Award	  	 	  	Total Award	 	 	  	 	  	Ind. Perf. Mult.	  	 	  	 Total

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]