Document:

ex10_1.htm

    
      
        

      

      Exhibit
10.11

       

      Employment
Agreement

       

      Sterling
Construction Company, Inc. & Roger M. Barzun 

       

      This
Employment Agreement (this "Agreement") is entered into
as of the 17th day of
March, 2006 (the "Effective
Date") between Sterling
Construction Company, Inc. (hereinafter the "Company") and Roger M. Barzun (hereinafter
"you").  For and in consideration of the mutual covenants contained
herein, the parties agree as follows:

       

      
        	
                Term:

              	
                Your
      employment under the terms and conditions of this Agreement will commence
      on the Effective Date and will continue until terminated by one of the
      parties as provided below under the heading
  "Termination."

              
	
                Title:

              	
                The
      Company will elect you Senior Vice President, Secretary & General
      Counsel of the Company or to such higher position or positions as the
      Board of Directors of the Company may determine in its absolute
      discretion.  You will report jointly to the Chief Executive
      Officer and the Board of Directors of the Company.

              
	
                Responsibilities:

              	
                You
      will carry out the normal and customary responsibilities of a general
      counsel of a publicly-traded company.  Such responsibilities
      include, but are not limited to the following:

                · Performing
      legal work and giving legal advice to the Company in the areas in which
      you are competent to do so by reason of your training and/or
      experience.

                 

                · The
      preparation of SEC filings.

                 

                · The
      selection, retention and supervision of outside counsel.

                 

                · The
      review of outside legal counsel legal fees and bills.

                 

                · Overall
      supervision and conduct of the Company's legal affairs.

                 

                At
      the request of the Company, you agree to also serve as an officer and/or
      director of one or more of the subsidiaries of the Company.

                You
      may undertake representation of other clients, provided that doing so does
      not conflict or interfere with the carrying out of your responsibilities
      to the Company.

              
	
                Salary:

              	
                The
      Company will pay you an annualized salary of $27,500 until March 31, 2006
      and thereafter $60,000 ("Salary") in
      approximately equal installments at the same time as other officers of the
      Company are paid.  Your Salary will be subject to such increases
      as the Compensation Committee of the Board of Directors of the Company may
      determine from time to time in its sole discretion.  Any
      increase in your Salary will upon its effective date without any further
      act by you or the Company be and become your Salary for all purposes of
      this Agreement.

              
	
                Bonus:

              	
                You
      will be eligible for an annual bonus in an amount that the Compensation
      Committee deems appropriate after taking into consideration the Company's
      consolidated financial results for the year, the number of non-routine
      legal transactions to which you devoted substantial time, and such other
      matters as the Compensation Committee deems relevant.

              
	
                Benefits:

              	
                You
      will be entitled to participate in all health, insurance and other benefit
      programs made available from time to time to officers of the Company
      generally and on the same terms and conditions.

                You
      will be eligible to participate in the Company's stock incentive plans to
      the extent approved by the Compensation Committee.

              
	
                Business
      Expenses:

              	
                The
      Company will reimburse you in accordance with Company expense
      reimbursement policies in effect from time to time for all reasonable
      business expenses incurred by you in carrying out your responsibilities
      under this Agreement.

              

      

       

      
        
          
          

        

        
          E2

          
            

          

        

        
          
          

        

      

       

      
        	
                Indemnification:

              	
                The
      Company will defend and indemnify you against, and hold you harmless from,
      any and all costs, liabilities, losses, claims and exposures arising out
      of your services as an employee and/or officer of the Company and as an
      officer and/or director of any of the Company's subsidiaries to the
      maximum extent permitted under applicable laws and under the Company's
      charter and bylaws.

              
	
                Confidential
      Information:

              	
                Except
      in carrying out your responsibilities under this Agreement or in response
      to a legal requirement, during your employment by the Company and
      thereafter, you will not disclose to any person, firm or corporation and
      you will not use any confidential information of the Company or its
      subsidiaries.

              
	
                Termination:

                For
      Cause:

              	
                 

                The
      Company may terminate your employment for Cause (as defined below)
      immediately upon giving you written notice of termination and paying you
      your Salary then in effect accrued to the date of
    termination.

              
	
                Without
      Cause, including by reason of Death or Permanent
    Disability:

              	
                The
      Company may terminate your employment without Cause or by reason of your
      death or permanent disability upon written notice to you (or to your
      personal representative, as the case may be) provided that it does the
      following:

                · Pay
      to you your Salary then in effect in at least bi-weekly installments for a
      period of six (6) full calendar months following the effective date of the
      termination of your employment.

                 

                · Pay
      to you within thirty (30) days of the effective date of termination any
      bonus to which you would otherwise have been entitled had your employment
      not been terminated, pro-rated, however, for the length of time during the
      period to which the bonus relates that you were an employee of the
      Company.  For purposes of determining the amount of the bonus to
      which you would have been entitled had your employment not been
      terminated, the Company will make such reasonable assumptions as it in
      good faith determines.

                 

              
	 
      	
                Your
      employment will be deemed to have been terminated by the Company without
      Cause in the event that the Company without your consent reduces your
      Salary; fails to elect you to the offices set forth above under the
      heading "Title" or breaches any other material term of this
      Agreement.

              
	
                Definition
      of Cause:

              	
                "Cause"
      is defined for purposes of this Agreement as any act by you of fraud,
      material dishonesty or serious moral turpitude; or material misconduct or
      a material breach by you in connection with the performance by you of your
      responsibilities under this Agreement.

              
	
                Resignation:

              	
                You
      may resign from the Company's employ by giving the Company sixty (60)
      days' prior written notice.  In the event of your resignation,
      you will be paid your Salary then in effect through the effective date of
      your resignation, but no bonus will be paid to you for the year in which
      your notice of resignation is given or, if different, the year in which it
      becomes effective.  The Company at its election may treat your
      notice of resignation as a resignation by you effective upon the date the
      notice is received of some or all of the officer and director positions
      you then hold in the Company and its subsidiaries, but the Company will
      nevertheless continue to pay you your Salary then in effect during the
      sixty-day period.

              
	
                Notices:

              	
                All
      formal notices required or permitted under this Agreement that concern
      this Agreement must be in writing and will be deemed given to a party
      either when hand delivered to the party against a receipt therefor; or
      when received (or when delivery is refused) by such party if sent by a
      courier service with instructions to provide next-business-day delivery
      and proof of delivery.  Notices must be sent to the Company at
      its headquarters address, attention of the President and must be sent to
      you at your most recent residence address in the Company's
      records.

              
	
                Pro-ration

              	
                All
      amounts payable to you under this Agreement will be deemed earned on a
      daily basis, and when pro-ration is necessary or appropriate, amounts will
      be pro rated based on a 365-day year.

              
	
                Other
      Terms

              	
                This
      Agreement supersedes and replaces all prior agreements between you and the
      Company.

                The
      waiver by a party of a breach of any provision of this Agreement will not
      operate or be construed as a waiver of any subsequent breach of the same
      or of any other provision of this Agreement.

                This
      Agreement may only be amended by the written agreement of both
      parties.

                As
      used in this Agreement, the word "will" means "is obligated to" and the
      word "may" means "is permitted to."

                The
      parties intend and agree that the terms and provisions of this Agreement
      and the performance of the parties hereunder be governed by the laws of
      the State of Texas, excluding its conflicts of laws provisions, and all
      disputes hereunder are subject exclusively to the jurisdiction of the
      state or federal courts sitting in Harris County, Texas.

                This
      Agreement may be executed in multiple counterparts, each of which may be
      considered an original, but all of which together will constitute but one
      and the same instrument.

                This
      Agreement when signed by a party may be delivered by telecopier or other
      electronic transmission with the same force and effect as if the same were
      an executed and delivered original manually signed
      counterpart.

              

      

      In
witness whereof the parties have executed this Agreement as of the Effective
Date.

       

      
        	
                Sterling Construction Company,
      Inc.

                 

                 

                By: 
      /s/ Patrick T.
      Manning                                                                

                Patrick T. Manning

                Chairman & Chief Executive
      Officer

              	
                 

                 

                 

                /s/
      Roger M. Barzun

                                               
      Roger
      M. Barzun

              
	 
      	 
      

      

       

       E3fourthamendcredit.htm

    
      
        

      
Exhibit
10.5

     

    FOURTH
AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     

    This
Fourth Amendment to Amended and Restated Credit Agreement (hereinafter referred
to as the “Amendment”) executed
as of July 28, 2006, by and among Clayton Williams Energy Inc., a Delaware
corporation (“CWEI”), Southwest
Royalties, Inc. (successor by merger to CWEI-SWR, Inc.), a Delaware corporation
(“SWR”, and
together with CWEI and each of their respective successors and permitted
assigns, the “Borrowers” and each a
“Borrower”),
Warrior Gas Co., a Texas corporation (“Warrior”), CWEI
Acquisitions, Inc. a Delaware corporation (“CWEI Acquisitions”),
Romere Pass Acquisition L.L.C., a Delaware limited liability company (“Romere”), CWEI Romere
Pass Acquisition Corp., a Delaware corporation (“Romere Corp”), Blue
Heel Company, a Delaware corporation (“Blue Heel”), and
Tex-Hal Partners, Inc., a Delaware corporation (“Tex-Hal,” and
together with Warrior, CWEI Acquisitions, Romere, Romere Corp and Blue Heel and
each of their successors and permitted assigns, the “Guarantors” and each
a “Guarantor”),
JPMorgan Chase Bank, N.A. (successor by merger to Bank One, N.A.
(Illinois)), a national banking association (“JPMorgan Chase”),
each of the financial institutions which is a party hereto (as evidenced by the
signature pages to this Amendment) or which may from time to time become a party
to the Agreement pursuant to the provisions of Section 14.3 thereof or any
successor or permitted assignee thereof (hereinafter collectively referred to as
“Lenders”, and
individually, “Lender”), JPMorgan
Chase, as Administrative Agent (in its capacity as Administrative Agent and
together with its successors in such capacity, “Administrative
Agent”).  Capitalized terms used but not defined in this
Amendment have the meanings assigned to such terms in that certain Amended and
Restated Credit Agreement dated as of May 21, 2004, by and among Borrowers,
Guarantors, Administrative Agent and Lenders (as amended, supplemented or
otherwise modified from time to time, the “Agreement”).

     

    WITNESSETH:

     

    WHEREAS, the Borrowers and the
Guarantors have requested that the Administrative Agent and the Lenders amend
the Agreement to permit the investment of up to $10,000,000 in a newly formed
partnership with a unit of General Electric Corporation through West Coast
Energy Properties GP, LLC, a newly formed subsidiary of CWEI and the general
partner of such partnership; and the Administrative Agent and the Lenders (or at
least the requisite percentage thereof) have agreed to do so on the terms and
conditions hereinafter set forth; and

     

    NOW, THEREFORE, for and in
consideration of the mutual covenants and agreements herein contained and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged and confessed, the Borrowers, the Guarantors, the Administrative
Agent and the Lenders, hereby agree as follows:

     

    SECTION
1.       Amendments to the
Agreement.  Subject to the satisfaction or waiver in writing of
each condition precedent set forth in Section 2
hereof, and in reliance on the representations, warranties, covenants and
agreements contained in this Amendment, the Agreement shall be amended in the
manner provided in this Section 1.

     

    
      
        
          

           

          Fourth
Amendment to Amended and Restated Credit Agreement – Page 1

          45803239.3

        

         

      

      
         

        
          

        

      

      
         

      

    

    1.1           Additional Definitions. Article I of the
Agreement shall be and it hereby is amended by adding the following definition
in the correct alphabetical order:

     

    “West
Coast Properties” means West Coast Energy Properties, L.P., a Texas limited
partnership and its successors.

     

    1.2           Investments.  Section 8.15
of the Agreement shall be and it hereby is amended by replacing clause (ix)
of such Section with the following clauses (ix) and (x):

     

    (ix)           Investments
in West Coast Properties, including equity contributions, and loans, advances or
other extensions of credit to West Coast Properties; provided that the amount of
such Investments made pursuant to this clause (ix) of Section 8.15
does not exceed in the aggregate, $10,000,000 and the proceeds of such
Investments are used by West Coast Properties to acquire and develop Oil and Gas
Interests.

     

    (x)           Other
Investments not otherwise described in clauses (i) through (ix) above; provided
that, the aggregate amount of all other Investments made pursuant to this clause
(x) outstanding at any time shall not exceed $1,000,000 (calculated based on the
original cost of such Investment).

     

    SECTION
2.       Conditions.  The
amendments to the Agreement contained in Section 1 of
this Amendment shall be effective upon the satisfaction of each of the
conditions set forth in this Section 2.

     

    2.1           Execution and
Delivery.  Each Borrower and each Guarantor shall have executed
and delivered this Amendment.

     

    2.2           Representations and
Warranties.  The representations and warranties of each
Borrower under the Agreement, as amended by the Amendment are true and correct
in all material respects as of such date, as if then made (except to the extent
that such representations and warranties relate solely to an earlier
date).

     

    2.3           No Event of
Default.  No Event of Default shall have occurred and be
continuing nor shall any event have occurred or failed to occur which, with the
passage of time or service of notice, or both, would constitute an Event of
Default.

     

    2.4           Partnership
Documents.  Borrowers shall have delivered to Administrative
Agent true and correct copies of the partnership agreement of West Coast Energy
Properties, L.P., a Texas limited partnership and all other documents,
agreements, instruments and certificates executed and delivered in connection
with the formation and capitalization of such partnership.

     

    2.5           Other
Documents.  The Administrative Agent shall have received such
other instruments and documents incidental and appropriate to the transaction
provided for herein as the Administrative Agent or its special counsel may
reasonably request, and all such documents shall be in form and substance
satisfactory to the Administrative Agent.

     

    
      
        
          

           

          Fourth
Amendment to Amended and Restated Credit Agreement – Page 2

          45803239.3

        

         

      

      
         

        
          

        

      

      
         

      

    

    SECTION
3.       Representations and Warranties of
Borrowers.  To induce the Lenders to enter into this Amendment,
the Borrowers hereby represent and warrant to the Lenders as
follows:

     

    3.1           Reaffirmation of Representations and
Warranties/Further Assurances.  After giving effect to the
amendments herein, each representation and warranty of any Borrower or any
Guarantor contained in the Agreement or in any of the other Loan Documents is
true and correct in all material respects on the date hereof (except to the
extent such representations and warranties relate solely to an earlier
date).

     

    3.2           Corporate Authority; No
Conflicts.  The execution, delivery and performance by each
Borrower and each Guarantor (to the extent a party hereto or thereto) of this
Amendment and all documents, instruments and agreements contemplated herein are
within each such Borrower’s or such Guarantor’s corporate or other
organizational powers, have been duly authorized by necessary action, require no
action by or in respect of, or filing with, any court or agency of government
and do not violate or constitute a default under any provision of any applicable
law or other agreements binding upon any Borrower or any Guarantor or result in
the creation or imposition of any Lien upon any of the assets of any Borrower or
any Guarantor except for Permitted Liens and otherwise as permitted in the
Agreement.

     

    3.3           Enforceability.  This
Amendment constitutes the valid and binding obligation of each Borrower and each
Guarantor enforceable in accordance with its terms, except as (i) the
enforceability thereof may be limited by bankruptcy, insolvency or similar laws
affecting creditor’s rights generally, and (ii) the availability of equitable
remedies may be limited by equitable principles of general
application.

     

    SECTION
4.        Miscellaneous.

     

    4.1           Reaffirmation of Loan Documents and
Liens.  Any and all of the terms and provisions of the
Agreement and the Loan Documents shall, except as amended and modified hereby,
remain in full force and effect.  Each Borrower hereby agrees that the
amendments and modifications herein contained shall in no manner affect or
impair the liabilities, duties and obligations of such Borrower or any Guarantor
under the Agreement and the other Loan Documents or the Liens securing the
payment and performance thereof.

     

    4.2           Parties in
Interest.  All of the terms and provisions of this Amendment
shall bind and inure to the benefit of the parties hereto and their respective
successors and assigns.

     

    4.3           Legal Expenses.  The
Borrowers hereby agree, jointly and severally, to pay all reasonable fees and
expenses of counsel to the Administrative Agent incurred by the Administrative
Agent in connection with the preparation, negotiation and execution of this
Amendment and all related documents.

     

    4.4           Counterparts.  This
Amendment may be executed in one or more counterparts and by different parties
hereto in separate counterparts each of which when so executed and delivered
shall be deemed an original, but all such counterparts together shall constitute
but one and the same instrument; signature pages may be detached from multiple
separate counterparts and attached to a single counterpart so that all signature
pages are physically attached to the same

     

    
      
        
          

           

          Fourth
Amendment to Amended and Restated Credit Agreement – Page 3

          45803239.3

        

         

      

      
         

        
          

        

      

      
         

      

    

    document.  However,
this Amendment shall bind no party until the Borrowers, the Guarantors, the
Lenders (or at least the requisite percentage thereof), and the Administrative
Agent have executed a counterpart.  Delivery of photocopies of the
signature pages to this Amendment by facsimile or electronic mail shall be
effective as delivery of manually executed counterparts of this
Amendment.

     

    4.5           Complete
Agreement.  THIS AMENDMENT, THE AGREEMENT, AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE
PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

     

    4.6           Headings.  The
headings, captions and arrangements used in this Amendment are, unless specified
otherwise, for convenience only and shall not be deemed to limit, amplify or
modify the terms of this Amendment, nor affect the meaning thereof.

     

    [Signature
Pages Follow]

    
      
        
          

           

          Fourth
Amendment to Amended and Restated Credit Agreement – Page 4

          45803239.3

        

         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the
parties have caused this Fourth Amendment to Amended and Restated Credit
Agreement to be duly executed as of the date first above written.

     

    
      	 
      	
              BORROWERS:

              CLAYTON
      WILLIAMS ENERGY, INC.

              a
      Delaware corporation

              By:_____________________________

              Mel
      G. Riggs, Senior Vice President and Chief Financial
  Officer

            
	 
      	
              SOUTHWEST
      ROYALTIES, INC.

              a
      Delaware limited liability company

              By:_____________________________

              Mel
      G. Riggs, Vice President

            
	 
      	
              GUARANTORS:

              WARRIOR
      GAS CO.

              a
      Texas corporation

              By:_____________________________

              Mel
      G. Riggs, Vice President

            
	 
      	
              CWEI
      ACQUISITIONS, INC.

              a
      Delaware corporation

              By:_____________________________

              Mel
      G. Riggs, Vice President

            
	 
      	
              ROMERE
      PASS ACQUISITION L.L.C.

              a
      Delaware limited liability company

              By:_____________________________

              Mel
      G. Riggs, Vice President

            
	 
      	
              CWEI
      ROMERE PASS ACQUISITION CORP.

              By:_____________________________

              Mel
      G. Riggs, Vice President

            
	
               
      

               

               

               

            	
              BLUE
      HEEL COMPANY

              a
      Delaware corporation

              By:_____________________________

              Mel
      G. Riggs, Vice President

            
	 
      	
              TEX-HAL
      PARTNERS, INC.

              a
      Delaware corporation

              By:_____________________________

              Mel
      G. Riggs, Vice President

            
	 
      	
              JPMORGAN CHASE BANK,
      N.A.,

              (successor
      by merger to Bank One, N.A. (Illinois)), as Administrative Agent and
      a Lender

              By:_____________________________

              Name:                      Wm.
      Mark Cranmer

              Title:                      Senior
      Vice President

            
	 
      	
              BANK
      OF SCOTLAND

              as
      Co-Agent and a Lender

              By:_____________________________

              Name:

              Title:

            
	 
      	
              UNION
      BANK OF CALIFORNIA, N.A.

              as
      Syndication Agent and a Lender

              By:_____________________________

              Name:

              Title:

              By:_____________________________

              Name:

              Title:

            
	 
      	
              BNP
      PARIBAS

              as
      Documentation Agent and a Lender

              By:_____________________________

              Name:

              Title:

              By:_____________________________

              Name:

              Title:

            
	 
      	
              FORTIS CAPITAL
      CORP.

              as
      a Lender

              By:_____________________________

              Name:

              Title:

              By:_____________________________

              Name:

              Title:

            
	 
      	
              COMERICA
      BANK

              as
      a Lender

              By:_____________________________

              Name:

              Title:

            
	 
      	
              GUARANTY
      BANK

              as
      a Lender

              By:_____________________________

              Name:

              Title:

            

    

    

    
      	 
      	
              NATEXIS
      BANQUES POPULAIRES

              as
      a Lender

              By:_____________________________

              Name:

              Title:

              By:_____________________________

              Name:

              Title:

            

    

    

    
      	 
      	
              BANK
      OF TEXAS, N.A.

              as
      a Lender

              By:_____________________________

              Name:

              Title:

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