Document:

exv10w1

 

Exhibit 10.1

FOURTH AMENDMENT TO LOAN AGREEMENT

     This Fourth Amendment to Loan Agreement
(“Amendment”) is made this 29th day of December, 2006
between HORIZON VESSELS INTERNATIONAL, LTD. (“Borrower”) and GENERAL ELECTRIC CREDIT CORPORATION OF
TENNESSEE as and its successors and assigns (“Lender”);

     WHEREAS, Borrower and Boeing Capital Corporation (“Boeing”) entered into that certain Loan
Agreement dated June 30, 2003, as amended from time to time and as assigned to Lender
(collectively, the “Loan Agreement”);

     WHEREAS, pursuant to the Loan Agreement, Boeing made advances to Borrower in the amount of
Thirty-Five Million and 00/100 United States Dollars ($35,000,000.00) as evidenced by that certain
Secured Promissory Note (the “Note”) dated June 30, 2003 in the original principal amount of
Thirty-Five Million and 00/100 United States Dollars ($35,000,000.00);

     WHEREAS, the Borrower and Lender desire to enter this Amendment for the purpose of amending
and restating the terms of the Note and for such other purposes as set forth herein;

     WHEREAS, the Borrower receives an advantage and material benefit from the amendment and
restatement of the Note;

     WHEREAS, the Lender is willing to amend, restate, renew and extend the Note, on condition
that, among other things, the Borrower and Lender execute and deliver this Amendment;

     WHEREAS, the Borrower has executed and delivered to Lender that certain Amended and Restated
Promissory Note dated on or near the date hereof in the original principal amount of Twenty-Five
Million and 00/100 Dollars ($25,000,000.00) (the “Amended Note”), pursuant to which the Borrower
and Lender have amended, restated, renewed and extended the Note, which Amended Note evidences
Borrower’s obligation to repay the current outstanding principal amount of the Loan (as defined in
the Agreement).

     NOW, THEREFORE, the parties hereto do hereby amend the Loan Agreement on the terms and
conditions hereof and do hereby agree as follows:

	 	1.	 	Borrower hereby ratifies and reaffirms its grant to Lender and hereby
grants Lender a security interest in all of Borrower’s right, title and interest
in the “Vessel,” as that term is defined in the Loan Agreement to secure the
payment and performance of all debts, obligations and liabilities of any kind
whatsoever of Borrower to Lender, now existing or arising in the future, including
but not limited to the payment and performance of all obligations of Borrower to
Lender under or pursuant to that certain Amended and Restated Promissory Note
dated on or near the date hereof in the original principal amount of Twenty-Five
Million and 00/100 Dollars ($25,000,000.00), the form of which is attached as
Exhibit “A” hereto, as the same may be amended, supplemented, renewed, extended or

 

 

	 	 	 	otherwise modified from time to time, and any renewals, extensions and modifications of such debts, obligations and
liabilities. Under no circumstances shall the Amended Note be considered a
novation of the Note but is simply a modification of the payment terms of the Note.
	 
	 	2.	 	The definition of the term “Note” is hereby amended to mean that
certain Amended and Restated Promissory Note dated on or near the date hereof in
the original principal amount of Twenty-Five Million and 00/100 Dollars
($25,000,000.00), as the same may be amended, supplemented, renewed, extended or
otherwise modified from time to time. The definition of the term “Mortgage” is
hereby amended to mean that certain First Preferred Mortgage, dated June 30, 2003
executed by Borrower in favor of Boeing Capital Corporation, covering the whole of
the Vanuatu-flagged vessel SEA HORIZON, Official Number 1340, as amended by that
certain Amendment No. 1 to First Preferred Mortgage, dated May 28, 2004 and as
amended by Amendment No. 2 to First Preferred Mortgage, dated on or near the date
hereof, between Borrower and Lender. All references in the Loan Agreement to the
“Loan Agreement” or this “Loan Agreement” shall be deemed to mean the Agreement,
as amended by this Amendment, and as the same may be further amended, modified or
restated from time to time.
	 
	 	3.	 	Borrower has adequate power and capacity to enter into, and to
perform its obligations under this Amendment and the Amendment No. 2 to First
Preferred Mortgage.
	 
	 	4.	 	Borrower hereby ratifies and affirms that the representations and
warranties made in Article 3 of the Loan Agreement are true as of the date hereof.
	 
	 	5.	 	In addition to the Events of Default set forth in Article 4 of the
Agreement, each of the following events shall constitute an “Event of Default”
under the Agreement:

	 	a.	 	Any statement, representation or warranty made by
Borrower in this Amendment or in any document, certificate or financial
statement executed or delivered with or in connection with this Amendment
proves at any time to have been untrue or misleading in any material
respect as of the time when made.

	 	6.	 	Except as stated in this Amendment, the Loan Agreement and the
provisions contained therein are ratified and adopted and remain unchanged and in
full force. To the extent the provisions of the Amended Note are inconsistent with
the provisions of the Loan Agreement, as Amended by this Amendment, the provisions
of the Amended Note shall control.
	 
	 	7.	 	This Amendment may be executed in counterparts, each of which when so
executed shall be deemed an original and all of which when taken together shall
constitute one and the same instrument effective between the parties as of the
date first above written.

-2-

 

     IN WITNESS WHEREOF, Borrower and Lender have executed this Amendment as of the date and year
first above written.

	 	 	 	 	 
	 	BORROWER:

HORIZON VESSELS INTERNATIONAL, LTD.

 	 
	 	By:  	 /s/
Ronald Mogel	 
	 	 	Name:  	 Ronald Mogel	 
	 	 	Title:  	 VP & Treasurer	 
	 
	 	ACKNOWLEDGED BY:

HORIZON OFFSHORE, INC.,

Guarantor

 	 
	 	By:  	 /s/
Ronald Mogel	 
	 	 	Name:  	 Ronald Mogel	 
	 	 	Title:  
Date: 	 VP, Treasurer & CFO
 December
29, 2006	 
	 
	 	HORIZON VESSELS, INC.,

Guarantor

 	 
	 	By:  	 /s/
Ronald Mogel	 
	 	 	Name:  	 Ronald Mogel	 
	 	 	Title:  

Date: 	 VP & Treasurer
 December 29,
2006	 
	 
	 	SECURED PARTY:

GENERAL ELECTRIC CREDIT CORPORATION OF TENNESSEE

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

-3-exv10w2

 

Exhibit 10.2

AMENDED AND RESTATED

PROMISSORY NOTE

     December 29, 2006     

(Date)

     WHEREAS, Horizon Vessels International, Ltd. a Cayman Islands corporation located at the
address stated below (“Maker"), executed that certain Promissory Note dated June 30, 2003 in the
principal amount of $35,000,000.00 in favor of Boeing Capital Corporation, its successors and
assigns (the “Original Note”);

     WHEREAS, Maker acknowledges that General Electric Credit Corporation of Tennessee is the
current holder of the Original Note for value;

     WHEREAS, Maker desires to modify and restate the payment terms provided in the Original
Note; and

     WHEREAS, Maker receives an advantage and material benefit from the modification and
restatement of the Original Note;

     NOW, THEREFORE, in consideration of the foregoing recitals, which Maker confirms to be true
and correct, and of the covenants contained herein and other good and valuable consideration, the
receipt and adequacy of which is hereby acknowledged, Maker hereby amends and restates the
Original Note and evidences Maker’s obligation to repay the indebtedness evidenced by the
Original Note as provided herein (the Original Note, as amended and restated herein is
hereinafter referred to as the “Note”). Under no circumstances shall this Note be considered a
novation of the Original Note but is simply a modification of the payment terms of the Original
Note. Except as restated and amended hereby the Original Note remains unchanged and in full
force and effect.

     FOR VALUE RECEIVED, Maker promises, jointly and severally if more than one, to pay to the
order of General Electric Credit Corporation of Tennessee or any subsequent holder hereof (each, a
“Payee") at its office located at 16479 Dallas Parkway #300 , Addison, TX 75001-2512 or at such
other place as Payee or the holder hereof may designate, the principal sum of twenty five million
and 00/100 Dollars ($25,000,000.00), with interest on the unpaid principal balance, from the date
value is actually given through and including the dates of payment, at a fixed, simple interest
rate of eight and 55/100 percent (8.55%) per annum, to be paid in lawful money of the United
States, in forty-eight (48) consecutive monthly installments of principal and interest as follows:

	 	 	 
	Periodic	 	 
	Installment	 	Amount
	47 @
	 	$353,594.16

each (“Periodic Installment") and a final installment which shall be in the amount of the total
outstanding principal and interest. The first Periodic Installment shall be due and payable on
February 1, 2007 and the following Periodic Installments and the final installment shall be due
and payable on the same day of each succeeding period (each, a “Payment Date"). All payments
shall be applied first to interest and then to principal. The acceptance by Payee of any payment
which is less than payment in full of all amounts due and owing at such time shall not constitute
a waiver of Payee’s right to receive payment in full at such time or at any prior or subsequent
time. Interest shall be calculated on the basis of a 365 day year (366 day leap year). The
payment of any Periodic Installment after its due date shall result in a corresponding decrease in
the portion of the Periodic Installment credited to the remaining unpaid principal balance. The
payment of any Periodic Installment prior to its due date shall result in a corresponding increase
in the portion of the Periodic Installment credited to the remaining unpaid principal balance.

This Note may be secured by a security agreement, chattel mortgage, preferred ship mortgage,
pledge agreement or like instrument (each of which is hereinafter called a “Security Agreement,”
and together with this Note, the “Debt Documents").

Time is of the essence hereof. If any installment or any other sum due under this Note or any
Security Agreement is not received within five (5) days after its due date, the Maker agrees to
pay, in addition to the amount of each such installment or other sum, a late payment charge of
five percent (5%) of the amount of said installment or other sum, but not exceeding any lawful
maximum. If (i) Maker fails to make payment of any amount due hereunder within ten (10) days
after the same becomes due and payable; or (ii) Maker is in default under, or fails to perform
under any term or condition contained in any Security Agreement, then the entire principal sum
remaining unpaid, together with all accrued interest thereon and any other sum payable under this
Note or any Security Agreement, at the election of Payee, shall immediately become due and
payable, with interest thereon at the lesser of eighteen percent (18%) per annum or the highest
rate not prohibited by applicable law from the date of such accelerated maturity until paid (both
before and after any judgment).

The Maker may prepay in full, but not in part, its entire indebtedness hereunder upon payment of
the entire indebtedness plus an additional sum as a premium equal to the following percentages of
the outstanding principal balance as of the prepayment date:

Prior to the first annual anniversary date of this Note: two percent (2%)

Prior to the second annual anniversary date of this Note: one percent (1%)

Prior to the third annual anniversary date of this Note: one percent (1%)

and zero percent (0%) thereafter, plus all other sums due hereunder or under any Security
Agreement.

 

 

It is the intention of the parties hereto to comply with the applicable usury laws; accordingly,
it is agreed that, notwithstanding any provision to the contrary in this Note or any Security
Agreement, in no event shall this Note or any Security Agreement require the payment or permit the
collection of interest in excess of the maximum amount permitted by applicable law. If any such
excess interest is contracted for, charged or received under this Note or any Security Agreement,
or if all of the principal balance shall be prepaid, so that under any of such circumstances the
amount of interest contracted for, charged or received under this Note or any Security Agreement
on the principal balance shall exceed the maximum amount of interest permitted by applicable law,
then in such event (a) the provisions of this paragraph shall govern and control, (b) neither
Maker nor any other person or entity now or hereafter liable for the payment hereof shall be
obligated to pay the amount of such interest to the extent that it is in excess of the maximum
amount of interest permitted by applicable law, (c) any such excess which may have been collected
shall be either applied as a credit against the then unpaid principal balance or refunded to
Maker, at the option of the Payee, and (d) the effective rate of interest shall be automatically
reduced to the maximum lawful contract rate allowed under applicable law as now or hereafter
construed by the courts having jurisdiction thereof. It is further agreed that without limitation
of the foregoing, all calculations of the rate of interest contracted for, charged or received
under this Note or any Security Agreement which are made for the purpose of determining whether
such rate exceeds the maximum lawful contract rate, shall be made, to the extent permitted by
applicable law, by amortizing, prorating, allocating and spreading in equal parts during the
period of the full stated term of the indebtedness evidenced hereby, all interest at any time
contracted for, charged or received from Maker or otherwise by Payee in connection with such
indebtedness; provided, however, that if any applicable state law is amended or the law of the
United States of America preempts any applicable state law, so that it becomes lawful for the
Payee to receive a greater interest per annum rate than is presently allowed, the Maker agrees
that, on the effective date of such amendment or preemption, as the case may be, the lawful
maximum hereunder shall be increased to the maximum interest per annum rate allowed by the amended
state law or the law of the United States of America.

The Maker and all sureties, endorsers, guarantors or any others (each such person, other than
the Maker, an “Obligor") who may at any time become liable for the payment hereof jointly and
severally consent hereby to any and all extensions of time, renewals, waivers or modifications of,
and all substitutions or releases of, security or of any party primarily or secondarily liable on
this Note or any Security Agreement or any term and provision of either, which may be made,
granted or consented to by Payee, and agree that suit may be brought and maintained against any
one or more of them, at the election of Payee without joinder of any other as a party thereto, and
that Payee shall not be required first to foreclose, proceed against, or exhaust any security
hereof in order to enforce payment of this Note. The Maker and each Obligor hereby waives
presentment, demand for payment, notice of nonpayment, protest, notice of protest, notice of
dishonor, and all other notices in connection herewith, as well as filing of suit (if permitted by
law) and diligence in collecting this Note or enforcing any of the security hereof, and agrees to pay (if permitted by
law) all expenses incurred in collection, including Payee’s reasonable attorneys’ fees.

THE MAKER HEREBY UNCONDITIONALLY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
BASED UPON OR ARISING OUT OF, DIRECTLY OR INDIRECTLY, THIS NOTE, ANY OF THE RELATED DOCUMENTS, ANY
DEALINGS BETWEEN MAKER AND PAYEE RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED
TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN MAKER AND PAYEE. THE
SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED
IN ANY COURT (INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS,
AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.) THIS WAIVER IS IRREVOCABLE MEANING THAT IT MAY
NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS NOTE, ANY RELATED DOCUMENTS, OR TO ANY
OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED TRANSACTION. IN THE
EVENT OF LITIGATION, THIS NOTE MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

This Note and other Debt Documents constitute the entire agreement of the Maker and Payee with
respect to the subject matter hereof and supercedes all prior understandings, agreements and
representations, express or implied.

No variation or modification of this Note, or any waiver of any of its provisions or
conditions, shall be valid unless in writing and signed by an authorized representative of Maker
and Payee. Any such waiver, consent, modification or change shall be effective only in the
specific instance and for the specific purpose given.

Any provision in this Note or any of the other Debt Documents which is in conflict with any
statute, law or applicable rule shall be deemed omitted, modified or altered to conform thereto.

[Signature page follows]

 

 

	 	 	 	 	 
	 	 	Horizon Vessels International, Ltd.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Ronald Mogel
	 

	 	 	 	 
	(Witness)
	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	Ronald Mogel
	 

	 	 	 	 
	(Print name)
	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	VP & Treasurer
	 

	 	 	 	 
	(Address)
	 	 	 	 

	 	 	 	 	 
	 

	 	Federal Tax ID:	 	 
	 

	 	 	 	 
	 

	 	Address:
	 	2500 CityWest Blvd., Suite 2200
	 

	 	 	 	Houston TX 77042

	 	 	 	 	 
	 	 	ACKNOWLEDGED BY:
	 
	 	 	 	 
	 	 	Horizon Offshore, Inc.,

Guarantor
	 
	 	 	 	 
	 

	 	By:	 	/s/ Ronald Mogel
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	Ronald Mogel
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	VP, Treasurer & CFO
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:	 	December 29, 2006
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	Horizon Vessels, Inc.,

Guarantor
	 
	 	 	 	 
	 

	 	By:	 	/s/ Ronald Mogel
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Name:	 	Ronald Mogel
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Title:	 	VP & Treasurer
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:	 	December 29, 2006

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