Document:

exv10w13

Exhibit 10.13

SECOND AMENDMENT TO CREDIT AGREEMENT

     THIS SECOND AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of August 19,
2010, between RigNet, Inc. a Delaware corporation (“Borrower”), the undersigned lenders
(collectively, “Lenders” and each individually, a “Lender”), and Bank of America, N.A., a national
banking association, as Administrative Agent (in such capacity, “Agent”) for itself and the other
Lenders. Capitalized terms used but not defined in this Amendment have the meanings given them in
the Credit Agreement (defined below).

RECITALS

     A. Borrower, Agent and Lenders from time to time party thereto, entered into that certain
Credit Agreement dated as of May 29, 2009 (as amended by that First Amendment to Credit Agreement
dated as of June 10, 2010, and as further amended, restated, or supplemented from time to time, the
“Credit Agreement”).

     B. Borrower has requested that Lenders make an additional $10,000,000 term loan to Borrower
under the Credit Agreement.

     C. Borrower, Lenders and Agent agree to amend the Credit Agreement, subject to the terms and
conditions of this Amendment.

     NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
acknowledged, the undersigned hereby agree as follows:

     1. Amendments to Credit Agreement.

     (a) Section 1.01 (Defined Terms) of the Credit Agreement is amended to delete the
definitions of “Commitment” and “Fixed Charge Coverage Ratio” in their entireties and
replace them with the following:

“Commitment” means, as to each Lender, it’s obligation to make Loans to Borrower
pursuant to Section 2.01, on the Closing Date and on the Additional Term Loan
Closing Date, as the case may be, in an aggregate principal amount at any one time
outstanding not to exceed the amount set forth opposite such Lender’s name on
Schedule 2.01.

“Fixed Charge Coverage Ratio” means, when determined, the ratio of (a) for Borrower
and its Subsidiaries, EBITDA minus cash Taxes, minus cash Restricted Payments made
by Borrower to its stockholders, minus $1,000,000 attributable to maintenance
capital expenditures, plus any voluntary prepayment of the Obligations, in each case
for the immediately preceding four fiscal-quarter period, to (b) for Borrower and
its Subsidiaries, the sum of (without duplication) current maturities of long term
debt (including, but not limited to, any Subordinated Liabilities and capital
leases), however excluding, the scheduled principal payment due and
payable by Borrower on the Maturity Date under any Loan, plus interest expense, plus
principal payments made in respect of Subordinated Liabilities, in each case for the
immediately preceding four fiscal-quarter period.

     (b) Section 1.01 (Defined Terms) of the Credit Agreement is amended to add the
following new defined terms in the appropriate alphabetical order:

“Additional Term Loan Commitment” means $10,000,000.

 

 

“Additional Term Loan Closing Date” means the date that all the conditions precedent
in Section 4.02 are satisfied or waived in accordance with Section 10.01 and the
Loans in respect of the Additional Term Loan Commitment are extended by the Lenders.

     (c) Section 2.01 (Term Loan Commitment) is hereby deleted in its entirety and replaced
with the following:

               “2.01 Term Loan Commitment.

     (a) Borrower acknowledges and confirms that on the Closing Date, Lenders
previously made a single advance term loan to Borrower in the original principal
amount of $35,000,00 in the aggregate, and that the Outstanding Amount is equal to
$25,520,833.33 as of August 19, 2010 (the “Existing Term Loan”). Borrower reaffirms
its obligation to pay the Existing Term Loan in accordance with the terms and
conditions of this Agreement and the other Loan Documents.

     (b) Subject to the terms and conditions of this Agreement, each Lender
severally and not jointly agrees to make a single advance term loan to Borrower in
an amount equal to such Lender’s portion of the Additional Term Loan Commitment on
the Additional Term Loan Closing Date (each such loan, together with the Existing
Term Loan, a “Loan”). After giving effect to the Borrowings on the Additional Term
Loan Closing Date (i) the Outstanding Amount shall not exceed $35,520,833.33, and
(ii) the aggregate Outstanding Amount of the Loans of any Lender shall not exceed
such Lender’s Commitment as listed on Schedule 2.01. Borrower may prepay the Loans
under Section 2.03, and shall repay the Loans pursuant to Section 2.04, but once
prepaid or repaid, such Loans shall not be reborrowed. The initial Borrowing on the
Closing Date and the subsequent Borrowing on the Additional Term Loan Closing Date
shall bear interest based on the Eurodollar Daily Floating Rate, subject to
subsequent conversion at Borrower’s option to Eurodollar Rate Loans, as further
provided herein.”

     (d) Section 2.02 (Conversions and Continuations of Loans) of the Credit Agreement is
hereby amended by deleting subsection (b) in its entirety and replacing it with the
following:

     “(b) Following receipt of a Loan Notice, Agent shall promptly notify each
Lender of the amount of its Applicable Percentage of the applicable Loans, and if no
timely notice of a conversion or continuation is provided by Borrower, Agent shall
notify each Lender of the details of any automatic conversion to Eurodollar Rate
Loans described in the preceding subsection. On the Closing Date and the Additional
Term Loan Closing Date, each Lender shall make the amount of its Loan available to
Agent in immediately available funds at Agent’s Office not later than 1:00 p.m. on
the Business Day specified in the applicable Loan Notice. Upon satisfaction of the
applicable conditions set forth in Sections 4.01 and 4.02 on the Closing Date and
the Additional Term Loan Closing Date, Agent shall make the funds so received
available to Borrower in like funds as received by Agent either by (i) crediting the
account of Borrower on the books of Bank of America with the amount of such funds or
(ii) wire transfer of such funds, in each case in accordance with instructions
provided to (and reasonably acceptable to) Agent by Borrower.”

     (e) Section 2.04 (Repayment of Loans) of the Credit Agreement is hereby deleted in its
entirety and replaced with the following:

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     “2.04 Repayment of Loans. Commencing on September 30, 2010, and continuing on
the last Business Day of each quarter thereafter, Borrower shall repay to the
Lenders the principal amount of $2,187,500. On the Maturity Date, Borrower shall
repay to the Lenders the Outstanding Amount, together with any accrued and unpaid
interest. Any payment of the Loans shall be applied first to Loans bearing interest
based on the Eurodollar Daily Floating Rate and then to Eurodollar Rate Loans
beginning with those Loans with the least number of days remaining in the Interest
Period applicable thereto and ending with those Loans with the most number of days
remaining in the Interest Period applicable thereto.”

     (f) Section 4.02 (Conditions to all Credit Extensions) of the Credit Agreement is
hereby deleted in its entirety and replaced with the following:

     “4.02 Conditions to all Credit Extensions. Conditions to all Credit
Extensions. The obligation of each Lender to honor any Request for Credit
Extension, including any Request for Credit Extension on the Additional Term Loan
Closing Date, is subject to the following conditions precedent:

          (a) The representations and warranties of Borrower and each other
Loan Party contained in Article V or any other Loan Document, or which are contained
in any document furnished at any time under or in connection herewith or therewith,
shall be true and correct in all material respects on and as of the date of such
Credit Extension, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and correct
in all material respects as of such earlier date, and except that for purposes of
this Section 4.02, the representations and warranties contained in subsections (a)
and (b) of Section 5.05 shall be deemed to refer to the most recent statements
furnished pursuant to clauses (a) and (b), respectively, of Section 6.01.

          (b) No Default shall exist, or would result from such proposed Credit Extension
or from the application of the proceeds thereof.

          (c) Agent shall have received a Request for Credit Extension in accordance with
the requirements hereof.”

     (g) Section 6.16 (Cash Collateral) of the Credit Agreement is hereby deleted in its
entirety and replaced with the following:

     “6.16 Cash Collateral. Borrower shall at all times maintain (a) a cash balance
of no less than $5,000,000 on deposit in its main operating account at Bank of
America (or, at Borrower’s option, invested by Borrower in a certificate of deposit
issued by Bank of America), and (b) a cash balance of no less than $5,000,000 on
deposit in a demand deposit account at Comerica (or, at Borrower’s option, invested
by Borrower in a certificate of deposit issued by Comerica), subject to reduction as
follows:

     (i) commencing on July 3, 2011, provided that Borrower has made each
scheduled principal payment in respect of the Principal Debt when due,
Borrower shall at all times maintain (A) a cash balance of no less than

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$3,750,000 on deposit in its main operating account at Bank of America
(or, at Borrower’s option, invested by Borrower in a certificate of deposit
issued by Bank of America), and (B) a cash balance of no less than
$3,750,000 on deposit in a demand deposit account at Comerica (or, at
Borrower’s option, invested by Borrower in a certificate of deposit issued
by Comerica);

provided that, if any Default or Event of Default exists and is continuing on any
proposed date of reduction in the preceding clause (i), then such reduction shall be
postponed until the earliest date on which (x) any such Default or Event of Default
has been cured, waived or otherwise ceases to exist, and (y) no other Default or
Event or Default then exists.”

     (h) Schedule 2.01 (Commitments and Applicable Percentages) of the Credit Agreement is
hereby deleted in its entirety and replaced with Schedule 2.01 to this Amendment.

     2. Conditions. This Amendment shall be effective as of the date first set forth above
once each of the following has been delivered to Agent:

     (a) this Amendment executed by Borrower, Required Lenders, and Agent;

     (b) an executed Guarantors’ Consent and Agreement in form, scope and substance
satisfactory to the Agent;

     (c) a Request for Credit Extension executed by Borrower;

     (d) an Officer’s Certificate from Borrower certifying as to incumbency of officers, no
changes to articles of incorporation and bylaws since the date of the certificate delivered
in connection with the Credit Agreement or including only modified constituent documents,
and resolutions adopted by the Borrower’s Board of Directors authorizing this Amendment;

     (e) Certificates of Existence and Good Standing of Borrower and each Guarantor from its
jurisdiction of organization;

     (f) an Officer’s Certificate from each Guarantor certifying as to incumbency of
officers, no changes to its constitutional documents since the date of the certificate
delivered in connection with the Credit Agreement, and resolutions adopted by the such
Guarantor’s board of directors or managers, as applicable, authorizing this Amendment and
the increased amount of its obligations under its respective Guaranty; and

     (g) such other documents as Agent may reasonably request.

     3. Representations and Warranties. Borrower represents and warrants to Agent and each
Lender that (a) it possesses all requisite power and authority to execute, deliver and comply with
the terms of this Amendment, (b) this Amendment has been duly authorized and approved by all
requisite corporate action on the part of Borrower, (c) no other consent of any Person (other than
Agent and Required Lenders) is required for this Amendment to be effective, (d) the execution and
delivery of this Amendment does not violate its organizational documents, (e) the representations
and warranties in each Loan Document to which it is a party are true and correct in all material
respects on and as of the date of this Amendment as though made on the date of this Amendment
(except to the extent that such representations and warranties speak to a specific date), (f) it is
in full compliance with all covenants and agreements contained in each Loan Document to which it is
a party, and (g) no Default or Event of Default has occurred and is

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continuing. The representations and warranties made in this Amendment shall survive the
execution and delivery of this Amendment. No investigation by Agent or any Lender is required for
Agent or any Lender to rely on the representations and warranties in this Amendment.

     4. Scope of Amendment; Reaffirmation; Release. All references to the Credit
Agreement shall refer to the Credit Agreement as amended by this Amendment. Except as affected by
this Amendment, the Loan Documents are unchanged and continue in full force and effect. However,
in the event of any inconsistency between the terms of the Credit Agreement (as amended by this
Amendment) and any other Loan Document, the terms of the Credit Agreement shall control and such
other document shall be deemed to be amended to conform to the terms of the Credit Agreement.
Borrower hereby reaffirms its obligations under the Loan Documents to which it is a party and
agrees that all Loan Documents to which it is a party remain in full force and effect and continue
to be legal, valid, and binding obligations enforceable in accordance with their terms (as the same
are affected by this Amendment). Borrower hereby releases Agent and Lenders from any liability
for actions or omissions in connection with the Credit Agreement and the other Loan Documents prior
to the date of this Amendment.

     5. Miscellaneous.

     (a) No Waiver of Defaults. This Amendment does not constitute (i) a waiver of,
or a consent to, (A) any provision of the Credit Agreement or any other Loan Document not
expressly referred to in this Amendment, or (B) any present or future violation of, or
default under, any provision of the Loan Documents, or (ii) a waiver of Agent’s or any
Lender’s right to insist upon future compliance with each term, covenant, condition and
provision of the Loan Documents.

     (b) Form. Each agreement, document, instrument or other writing to be
furnished to Agent and Lenders under any provision of this Amendment must be in form and
substance satisfactory to Agent and its counsel.

     (c) Headings. The headings and captions used in this Amendment are for
convenience only and will not be deemed to limit, amplify or modify the terms of this
Amendment, the Credit Agreement, or the other Loan Documents.

     (d) Costs, Expenses and Attorneys’ Fees. Borrower agrees to pay or reimburse
Agent on demand for all its reasonable out-of-pocket costs and expenses incurred in
connection with the preparation, negotiation, and execution of this Amendment, including,
without limitation, the reasonable fees and disbursements of Agent’s counsel.

     (e) Successors and Assigns. This Amendment shall be binding upon and inure to
the benefit of each of the undersigned and their respective successors and permitted
assigns.

     (f) Multiple Counterparts. This Amendment may be executed in any number of
counterparts with the same effect as if all signatories had signed the same document. All
counterparts must be construed together to constitute one and the same instrument. This
Amendment may be transmitted and signed by facsimile or portable document format (PDF). The
effectiveness of any such documents and signatures shall, subject to applicable law, have
the same force and effect as manually-signed originals and shall be binding on Borrower,
Agent and Lenders. Agent may also require that any such documents and signatures be
confirmed by a manually-signed original; provided that the failure to request or deliver the
same shall not limit the effectiveness of any facsimile or PDF document or signature.

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     (g) Governing Law. This Amendment and the other Loan Documents must be
construed, and their performance enforced, under Texas law.

     (h) Entirety. The Loan Documents (as amended hereby) Represent the Final
Agreement Among Borrower, Agent and Lenders, and May Not Be Contradicted by Evidence of
Prior, Contemporaneous, or Subsequent Oral Agreements by the Parties. There Are No
Unwritten Oral Agreements among the Parties.

[Signatures appear on the following pages.]

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     This Amendment is executed as of the date set out in the preamble to this Amendment.

	 	 	 	 	 
	 	BORROWER:

RIGNET, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Martin L. Jimmerson
 	 
	 	 	Martin L. Jimmerson 	 
	 	 	Chief Financial Officer 	 
	 

Signature Page to Second Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	AGENT:

BANK OF AMERICA, N.A.,

a national banking association

 	 
	 	By:  	/s/ Anthony Kell
 	 
	 	 	Anthony Kell 	 
	 	 	Assistant Vice President 	 
	 

Signature Page to Second Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	LENDER:

BANK OF AMERICA, N.A.,

a national banking association

 	 
	 	By:  	/s/ Michelle C. Tabor
 	 
	 	 	Michelle C. Tabor 	 
	 	 	Vice President 	 
	 

Signature Page to Second Amendment to Credit Agreement

 

 

	 	 	 	 	 
	 	LENDER:

COMERICA BANK,

a Texas banking association

 	 
	 	By:  	/s/ Steven J. DiPasquale
 	 
	 	 	Steven J. DiPasquale 	 
	 	 	Vice President 	 
	 

Signature Page to Second Amendment to Credit Agreement

 

 

SCHEDULE 2.01

COMMITMENTS

AND APPLICABLE PERCENTAGES

Closing Date

	 	 	 	 	 	 	 	 	 
	Lender	 	Commitment	 	 	Applicable Percentage	 
	 
	Bank of America, N.A.
	 	$	20,000,000	 	 	 	57.142857143	%
	Comerica Bank
	 	$	15,000,000	 	 	 	42.857142857	%
	Total
	 	$	35,000,000	 	 	 	100.000000000	%

Additional Term Loan Closing Date

	 	 	 	 	 	 	 	 	 
	Lender	 	Commitment	 	 	Applicable Percentage	 
	 
	Bank of America, N.A.
	 	$	10,000,000	 	 	 	100.00	%
	Comerica Bank
	 	$	0	 	 	 	0.00	%
	Total
	 	$	10,000,000	 	 	 	100.000000000	%

Schedule 2.01

 

 

GUARANTORS’ CONSENT AND AGREEMENT

     As an inducement to Agent and Required Lenders to execute, and in consideration of Agent’s and
Required Lenders’ execution of, this Amendment, the undersigned hereby consent to this Amendment
and agree that this Amendment shall in no way release, diminish, impair, reduce or otherwise
adversely affect the obligations and liabilities of the undersigned under the Guaranty Agreement
executed by the undersigned in connection with the Credit Agreement, or under any Loan Documents,
agreements, documents or instruments executed by the undersigned to create liens, security
interests or charges to secure any of the Obligation, all of which are in full force and effect.
The undersigned further represent and warrant to Agent and Lenders that (a) the representations and
warranties in each Loan Document to which it is a party are true and correct in all material
respects on and as of the date of this Amendment as though made on the date of this Amendment
(except to the extent that such representations and warranties speak to a specific date), (b) the
undersigned is in full compliance with all covenants and agreements contained in each Loan Document
to which it is a party, and (c) no Default or Event of Default has occurred and is continuing.
Each Guarantor hereby releases Agent and Lenders from any liability for actions or omissions in
connection with the Loan Documents prior to the date of this Amendment. This Consent and Agreement
shall be binding upon the undersigned, and their legal representatives and permitted assigns, and
shall inure to the benefit of Agent and Lenders, and their successors and assigns.

	 	 	 	 	 
	 	GUARANTORS:

LANDTEL, INC. (formerly known as

LandTel II, Inc.),

a Delaware corporation

 	 
	 	By:  	/s/ Martin L. Jimmerson
 	 
	 	 	Martin L. Jimmerson 	 
	 	 	President 	 
	 
	 	LANDTEL COMMUNICATIONS, L.L.C.,

a Louisiana limited liability company

 	 
	 	By:  	/s/ Martin L. Jimmerson
 	 
	 	 	Martin L. Jimmerson 	 
	 	 	Manager 	 
	 
	 	RIGNET SATCOM, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Martin L. Jimmerson
 	 
	 	 	Martin L. Jimmerson 	 
	 	 	Chief Financial Officer 	 
	 

Guarantors’ Consent to Second Amendment to Credit Agreementexv10w14

Exhibit 10.14

Employment Agreement

     This Employment Agreement (“Agreement”), including the attached Exhibits A and B, which are
made a part hereof for all purposes, between RigNet, Inc. (“Company”) and William D. Sutton
(“Executive”) is effective as of May 18, 2010 (“Effective Date”). The Company and Executive agree
as follows:

     1. TERM AND POSITION: The Company agrees to employ Executive, and Executive agrees to be
employed by the Company, in the Positions and for the Term stated on Exhibit “A.” During the Term
of this Agreement, Executive shall devote his full time and undivided attention during business
hours to the business and affairs of the Company, except for vacations, illness or incapacity;
however, nothing in this Agreement shall preclude Executive from (i) engaging in charitable and
community activities, and (ii) managing his personal investments, provided that such activities do
not materially interfere with the performance of his duties and responsibilities under this
Agreement. The Chief Executive Officer of the Company (“CEO”) in accordance with guidelines, if
any, of the Board of Directors of the Company (“Board”) shall give Executive written notice of any
such activities that it reasonably believes materially interfere with the performance of his
duties hereunder and provide Executive with a reasonable period of time to correct such
interference.

     2. COMPENSATION: While Executive serves in the Positions set forth on Exhibit “A,”
Executive’s annual base salary, as set forth on Exhibit “A,” shall be paid in accordance with the
Company’s standard payroll practices for its executive officers. Executive shall participate in
the Company’s currently effective Management Incentive Plan (“MIP”) and, under the terms of the
MIP, shall be eligible for annual bonuses and/or periodic long-term incentive awards, in cash
and/or in Company stock, as determined appropriate from time to time by the Compensation Committee
of the Board (“Compensation Committee”). Under the terms of the MIP and subject to the sole
discretion of the Compensation Committee, Executive shall be eligible for an annual bonus in the
amount, and determined in the manner, set forth on Exhibit “A” attached hereto.

     3. BENEFITS: Executive shall be allowed to participate in all compensation and benefit plans
and receive all perquisites that the Company makes available to its other senior executives of the
same corporate level and also to participate in all employee benefit plans and programs that the
Company makes available to the Company’s employees in general. Nothing in this Agreement is to be
construed to obligate the Company to institute, maintain, or refrain from changing, amending, or
discontinuing any benefit program or plan, so long as such actions are similarly applicable to the
covered executives or employees, as applicable.

     4. INDEMNIFICATION: In any situation where under applicable law the Company has the power to
indemnify, advance expenses to and defend Executive in respect of any claims,

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judgments, fines, settlements, loss, cost or expense (including attorneys fees) of any nature
related to or arising out of Executive’s activities as an agent, employee, officer or director of
the Company or in any other capacity in which he is acting or serving on behalf of or at the
request of the Company (a “Claim”), the Company shall fully indemnify Executive to the maximum
extent permitted by law and promptly on written request from Executive advance expenses {including
attorney’s fees) to Executive and defend Executive to the fullest extent permitted by law, unless
Executive has been grossly negligent or willfully engaged in misconduct in the performance or
nonperformance of his duties that is the basis for such Claim, which nonperformance shall include a
failure of Executive to inform the Board of matters that could reasonably be expected, at such
time, to be materially injurious financially to the Company. This contractual indemnification of
Executive by the Company hereunder shall not be deemed or construed as operating to impair any
other obligation of the Company respecting Executive’s indemnification or defense otherwise arising
out of this or any other agreement or promise or obligation of the Company under any statute,
articles of incorporation, by-laws or otherwise.

     5. D&O INSURANCE: The Company will obtain and maintain throughout the Term officer and
director liability insurance covering Executive in an amount believed by the Board to be
reasonable for the Company, given its size and activities, but in no event shall the coverage for
Executive be less (in amount or scope) than the coverage provided for any other officer or
director of the Company. Such insurance coverage shall continue as to Executive after he has
ceased to be a director, officer or employee of the Company with respect to acts or omissions,
which occurred prior to such cessation. Insurance contemplated by this Section shall inure to the
benefit of Executive, his heirs and the executors and administrators of his estate.

     6. TERMINATION OF EMPLOYMENT: The Company and Executive agree that, during the Term, either
party may, upon at least 30 days written notice to the other, terminate Executive’s employment;
provided, however, that Executive’s employment may be terminated by the Company for Cause only as
provided below. The Term of the Agreement shall terminate upon the termination of Executive’s
employment for any reason.

     7. SEVERANCE PAY AND BENEFITS: If, during the Term, the Company terminates Executive’s
employment without Cause or Executive terminates his employment for Good Reason, the Company shall
pay Executive a Cash Severance Amount and provide Executive with certain other severance benefits
(collectively, the “Severance Pay”) as described below. The Severance Pay shall be as follows:

	 	(a)	 	The Cash Severance Amount shall be the amount as provided in
Exhibit A hereto. The Company shall pay the Cash Severance Amount to Executive
in a lump sum by wire transfer on or as soon as reasonably practical after the
termination date; provided, however, that if at such time Executive is a

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	 	 	 	“specified employee,” as defined in Section 409A of the Internal Revenue Code
of 1986, as amended (“Code”) and the applicable Treasury Regulations
thereunder, the Company shall not make such payment until the earlier of (i)
the first day of the seventh month after Executive’s termination date or (ii)
the date of Executive’s death. In the event of any such delay in payment,
such Cash Severance Amount shall bear interest at the LIBOR rate in effect on
his termination date until paid.
	 
	 	(b)	 	Provided Executive timely elects continued coverage under the
Company’s group health plan pursuant to Section 4980B of the Code (“COBRA”),
the Company shall pay on Executive’s behalf the full premium required for such
continued coverage elected for his applicable COBRA period but not to exceed
18 months; provided, however, the Company shall take all actions necessary for
Executive not to be taxed on either the continued coverage or any health
benefits received under the health plan, which may include, if effective,
paying Executive a monthly amount in cash, with a full tax gross-up, that
enables Executive to pay the health premium required with after-tax dollars in
order for such continued coverage or benefits to be non-taxable to him;
provided, further however, if such reimbursement payments would be subject to
tax under Section 409A of the Code, the Company shall provide Executive with
either a full tax gross-up, paid when Executive remits such taxes, or
reasonably equivalent health insurance coverage that does not subject
Executive to tax under Sections 105,106 or 409A of the Code.
	 
	 	(c)	 	As soon as practical on or following his termination, the
Company shall pay Executive (i) any earned but unpaid base salary, (ii) any
accrued but unused vacation, and (iii) all reasonable and unreimbursed
business expenses incurred by him prior to his termination.
	 
	 	(d)	 	The Company shall provide Executive with outplacement services
of Executive’s choosing, not to exceed $20,000.

Executive shall not be entitled to Severance Pay for a termination of employment that is due to
his death or Disability, his voluntary termination without Good Reason, or his termination by the
Company for Cause.

     8. DEFINITIONS

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     The following are definitions of terms used in this and other sections of this Agreement.

	 	(a)	 	Cause. “Cause” means (i) Executive’s conviction of a felony or a misdemeanor
involving moral turpitude; (ii) Executive’s intentional and continued failure to
perform his duties (other than by reason of an illness or a disability); (iii)
intentional engagement in conduct by Executive that is materially injurious to the
Company (monetarily or otherwise); (iv) Executive’s gross negligence in the
performance of Executive’s duties; provided, however, Executive shall not be
deemed to have been terminated for Cause under clauses (ii), (iii) or (iv) above
unless the determination of whether Cause exists is made in writing by the CEO,
such determination to set forth the basis for the determination. If Executive
disagrees with the CEO’s determination, Executive may, within 30 days of the
CEO’s determination file a written appeal with the Board, and the Board may
reverse the CEO’s determination if a resolution is duly adopted by the affirmative
vote of a majority of the entire membership of the Board (excluding Executive, if a
member) at a meeting of the Board that was called for the purpose of considering
such termination (after 15 days’ notice to Executive and an opportunity for
Executive, together with Executive’s counsel, to be heard before the Board and, if
reasonably possible, to cure the breach that is the alleged basis for Cause) finding
that, in the good faith opinion of the Board, Executive was not guilty of conduct
constituting Cause and specifying the particulars thereof in detail.
	 
	 	(b)	 	(b) Good Reason. “Good Reason” means (i) an adverse change in
Executive’s position, authority, duties or responsibilities, including job title, (ii)
an adverse change in Executive’s base salary or the taking of any action by the
Company that would diminish, other than in a de minimus amount, the aggregate
incentive compensation awards or opportunities of Executive or the level of
Executive’s participation relative to other participants, iii) the relocation of the
Company’s principal executive offices by more than 25 miles from where such
offices are located on the Effective Date or Executive being based at any office other
than the principal executive offices of the Company, except for travel reasonably
required in the performance of Executive’s duties and reasonably consistent with
Executive’s travel prior to the Effective Date, or (iv) a breach of this Agreement
by the Company, which remains uncorrected for 10 days following Executive’s
written notice to the Company of such breach.
	 
	 	(c)	 	Disability. “Disability” means Executive (i) is unable to perform substantially
Executive’s duties with the Company as a result of any physical or mental
impairment that is reasonably expected to last for a continuous period of not less
than 12 months, as supported by a written opinion by a physician selected by
Executive, and (ii) is receiving long-term disability benefits under the Company’s

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	 	 	 	insured long-term disability plan.

     9. COMPANY EQUITY: The provisions of this Section are in addition to any
rights of Executive under Section 7 of this Agreement.

	 	(a)	 	Upon Executive’s termination of employment for Good Reason, death or Disability
or upon Executive’s termination by the Company for any reason other than Cause, each
Company stock option of Executive automatically shall vest and become exercisable in
full. Further, in the event that Executive’s employment is terminated for any reason
other than for Cause, all vested Company stock options of Executive, including those
that become vested on his termination of employment as provided in this Agreement,
shall continue in full force and effect for the remainder of their original option
terms. In addition, each Company restricted stock award and other Company-equity based
award, and any other deferred compensation award granted to Executive, shall vest in
full and be payable on the date the Cash Severance Amount is paid to Executive as
provided above. However, expressly excluded from this section are any equity awards
issued to Executive by the Company under a long-term incentive plan (“LTIP”) after the
Company’s stock is listed on any public stock exchange or securities market. Such
equity issued under the LTIP after a public listing shall vest and continue in full
force and effect in accordance with the terms of the LTIP.
	 
	 	(c)	 	In the event that Executive’s employment is terminated by the Company for Cause
and the Company’s stock is not listed on any public stock exchange or securities
market, then for 90 days following Executive’s termination the Company shall have a
right to cancel all of Executive’s vested stock options by paying Executive a cash lump
amount equal to the excess, if any, of the Fair Market Value of the shares of the
Company stock covered by such options and the exercise prices of such options.
	 
	 	(d)	 	Upon a “Change of Control,” all Company stock options and other Company
equity-based awards of Executive automatically shall vest in full immediately prior to
such Change of Control and be exercisable or payable pursuant to its terms,
notwithstanding anything in any award agreement to the contrary.
	 
	 	(e)	 	In the event that a majority of other shareholders sell or otherwise dispose of
any of their shares of Company stock or securities convertible into Company stock prior
to an initial public offering of the Company stock, the other shareholders and the
Company shall take, at their sole expense, all actions

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	 	 	 	necessary or helpful, to enable Executive, at his election, to sell or similarly
dispose of his shares of Company stock to such purchaser(s) at the same time and on
the same terms. The percentage of his shares of Company stock that Executive may
elect to sell or otherwise dispose of pursuant to this “tag along” right shall not
exceed the percentage of the Company stock owned by the other selling shareholders
(with all convertible securities being deemed fully converted) that it is selling or
otherwise disposing in such transaction(s). Such “tag along” rights for Executive
shall no longer exist once the Company’s stock is listed on any public stock
exchange or securities market.

     10. NO OFFSET OR MITIGATION: Executive shall not be required to mitigate the
amount of any payment or benefit provided for under this Agreement by seeking other
employment or otherwise nor shall the amount of any payment or benefit provided for in this
Agreement be reduced as the result of his employment by another employer or his self-
employment, except that any severance payments or benefits that Executive is entitled to
receive
pursuant to a Company severance welfare benefit plan for employees in general shall reduce
the
amount of payments and benefits otherwise payable or to be provided to Executive under this
Agreement.

     11. CONFIDENTIALITY: Executive will not use, divulge, or disclose, directly or indirectly,
any trade secret, data, records, or other information concerning the technology, know-how,
business, policies, finances, or operations of the Company or any of its affiliates, which
Executive acquires knowledge of pursuant to his employment with the Company (the “Information”),
including, but not limited to, information regarding its customers and projects. He will not,
without the express consent of the Chief Executive Officer or a member of the Board, remove from
the offices of the Company any originals or copies of any of the Information, or any computer
disks, computer hard drives, or computer tapes on which any of the Information is recorded.

     12. INVENTIONS: Executive will promptly and fully disclose to the Company any inventions,
designs, improvements or discoveries which Executive develops during his employment with the
Company, whether conceived during regular working hours or otherwise. All such inventions,
designs, improvements, and discoveries shall be the exclusive property of the Company. Executive
will: (i) assist the Company in obtaining appropriate legal protection (including patent,
trademark, and copyright protection) for the rights of the Company with respect to such
inventions, designs, improvements, and discoveries, and (ii) execute all documents and do all
things necessary to (a) obtain such legal protection, and (b) vest the Company with full and
exclusive title thereof.

     13. NON-COMPETITION OBLIGATIONS: The Executive Agrees that, during

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the Term of this Agreement and for the 12-month period following any termination of this Agreement
by the Company without Cause, Executive shall not, directly or indirectly, engage in any business
competing with the businesses of the Company, whether directly or as an owner of more than 5% in,
as a manager of, a participant in, a consultant to or a person who renders services on behalf of, a
person who engages in such business, or otherwise, within (i) the states of Texas, Louisiana,
Colorado or Wyoming or (ii) in any geographical area in which the Company actually engages in such
businesses, specifically including the nations listed on Exhibit B attached hereto. The business of
the Company is providing Internet protocol-based voice, data and video networks and software
application management services for offshore drilling companies, oil companies and oil-field
service companies.

     14. NON-SOLICITATION: During the Term of this Agreement and the 12-month period following the
termination hereof, Executive shall not directly, or indirectly through another entity, induce or
attempt to induce any employee of the Company to leave the employ of the Company, or in any way
interfere with the relationship between the Company and any employee thereof, and Executive shall
not directly or indirectly induce or attempt to induce any existing or prospective customer of the
Company to reduce or cease its business relationship with the Company.

     15. WARRANTY AND INDEMNIFICATION: Executive warrants that he is not a party to any other
restrictive agreement limiting his activities in his employment by the Company. Executive further
warrants that at the time of the signing of this Agreement, Executive knows of no written or oral
contract or of any other impediment that would inhibit or prohibit continued employment with the
Company. Executive shall hold the Company harmless from any and all suits and claims arising out
of any breach of such restrictive agreement or contracts.

     16. NON-DISPARAGEMENT: The parties shall refrain, both during and after the Term, from
publishing any oral or written statements about each other (including with respect to the Company,
its affiliates, or any of their respective officers, employees, agents, or representatives) that
are disparaging, slanderous, libelous, or defamatory.

     17. NOTICES: Notices and all other communications shall be in writing and shall be deemed to
have been duly given when personally delivered or when mailed by United States registered or
certified mail. Notices to the Company, shall be sent to 1880 South Dairy Ashford, Suite 300,
Houston, Texas 77077 attention: Chief Executive Officer. Notices and communications to Executive
shall be sent to the address Executive most recently provided to the Company.

     18. NO WAIVER: No failure by either party at any time to give notice of any breach

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by the other party of, or to require compliance with, any condition or provision of this Agreement
shall be deemed a waiver of any provisions or conditions of this Agreement.

     19. ARBITRATION: Any dispute about the validity, interpretation, effect or alleged violation
of this Agreement (an “arbitrable dispute”) must be submitted to confidential arbitration in
Houston, Texas. Arbitration shall take place before an experienced employment arbitrator licensed
to practice law in such state and selected in accordance with the Model Employment Arbitration
Procedures of the American Arbitration Association. Arbitration shall be the exclusive remedy of
any arbitrable dispute. The Company shall bear all fees, costs and expenses of arbitration,
including those of Executive unless the arbitrator finds that Executive has acted in bad faith and
provides otherwise with respect to the fees, costs and expenses of Executive; provided, however, in
no event shall Executive be chargeable with the fees, costs and expenses of the Company or the
arbitrator. Should any party to this Agreement pursue any arbitrable dispute by any method other
than arbitration, the other party shall be entitled to recover from the party initiating the use of
such method all damages, costs, expenses and attorneys’ fees incurred as a result of the use of
such method. Notwithstanding anything herein to the contrary, nothing in this Agreement shall
purport to waive or in any way limit the right of any party to seek to enforce any judgment or
decision on an arbitrable dispute in a court of competent jurisdiction. Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal courts in Houston,
Texas, for the purposes of any proceeding arising out of this Agreement.

     20. GOVERNING LAW: This Agreement will be governed by and construed in
accordance with the laws of the State of Texas without regard to conflicts of law principles.

     21. SUCCESSORS:

	 	(a)	 	This Agreement is personal to Executive and without the prior written consent of
the Company shall not be assignable by Executive otherwise than by will or the laws of
descent and distribution. This Agreement shall inure to the benefit of and be
enforceable by Executive’s legal representatives.
	 
	 	(b)	 	This Agreement shall inure to the benefit of and be binding upon the Company
and its successors and assigns.
	 
	 	(c)	 	The Company shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place. As used in this
Agreement, “Company” shall mean the Company as defined in this

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	 	 	 	Agreement and any successor to its business and/or assets as aforesaid which
assumes and agrees to perform this Agreement by operation of law or otherwise.

     22. ENTIRE AGREEMENT: This instrument contains the entire agreement of Executive and the
Company with respect to the subject matter hereof and all promises, representations,
understandings, arrangements, and prior and contemporaneous agreements (written or oral) between
the parties with respect to the subject matter hereof, are terminated hereby.

     23. SURVIVAL/SEVERABILITY/HEADINGS: It is the express intention and agreement of the parties
that Sections 5 through 25 of this Agreement shall survive the termination of the Term. In
addition, all obligations of the Company to make payments under this Agreement shall survive any
termination of this Agreement on the terms and conditions set forth in this Agreement. The
invalidity or unenforceability of any one or more provisions of this Agreement shall not affect
the validity or enforceability of the other provisions of this Agreement, which shall remain in
full force and effect. Article and section headings contained in this Agreement are provided for
convenience and reference only, and do not define or affect the meaning, construction, or scope of
any of the provisions of this Agreement.

     24. TAX WITHHOLDING: The Company shall be entitled to withhold from any compensatory payments
that it makes to Executive under this Agreement or otherwise all taxes required by applicable law
to be withheld therefrom by the Company.

     25. LEGAL FEES: The Company shall reimburse Executive for his legal fees
incurred in advising him with respect to and in preparing and reviewing this Agreement.

     IN WITNESS WHEREOF, the Company and Executive have executed this Agreement in multiple
originals to be effective for all purposes as of the Effective Date.

	 	 	 	 	 	 
	 	 
	 	RIGNET, INC.	 	 
	 	 
	 	 	 	 
	 	By: 

Title:

	 	/s/ Mark B. Slaughter
 

CEO & President
	 	 
	 	 
	 	 	 	 
	 	EXECUTIVE: WILLIAM D. SUTTON	 	 
	 	 
	 	 	 	 
	 	/s/ William D. Sutton	 	 
	 	 	 	 
	 	(Signature)	 	 

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Exhibit A

To Employment Agreement

between RigNet, Inc.

and the Executive Named Below

	 	 	 

	Name:

	 	WILLIAM D. SUTTON
	 
	 	 
	Position:

	 	VICE PRESIDENT, SECRETARY &
GENERAL COUNSEL
	 
	 	 
	Reporting:

	 	Executive shall report to the Chief Executive Officer of the Company.
	 
	 	 
	Term:

	 	Through November 15, 2010 (the “primary term”); provided
that beginning on the final date in the primary term and
on each anniversary thereafter, the Term automatically
will be extended for an additional one year, unless at
least 90 days prior to any such anniversary either of the
parties to this Agreement gives written notice to the
other that the Term shall cease to be so extended.
Notwithstanding the foregoing, upon a Change of Control,
the Term shall not be less than two years from the date of
such Change of Control. However, the Term shall
automatically terminate as provided in Section 7.
	 
	 	 
	Annual Base Salary:

	 	$172,784. Executive’s base salary may be increased from
time to time, but as increased may not be thereafter decreased.
	 
	 	 
	Annual Bonus:

	 	Each fiscal year of the Company (each fiscal year being a
“Bonus Period”), Executive shall participate in the
Company’s annual bonus plan (Management Incentive Plan or
“MIP”). Subject to the MIP’s terms and conditions,
Executive shall be eligible to receive a target bonus in
an amount not less than 30% of Executive’s annual Base
Salary. Executive’s entitlement to a bonus during each
Bonus Period shall be dependent upon the Company’s and
Executive’s satisfaction of criteria established by the
Compensation Committee, at its sole discretion, under the
MIP. Determination of the satisfaction of such criteria
shall be solely based upon the Company’s audited financial
statements and final Board of Director approval for each
such Bonus Period, and further provided that Executive
shall not be
	 
	 	 

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	 	entitled to receive any Annual Bonus if Executive is not an
employee of the Company on the date that payment of an
approved Annual Bonus would otherwise be payable.
	 
	 	 
	Cash Severance Amount:

	 	The aggregate sum of (i) the amount of Executive’s target
bonus for the Bonus Period in which his termination occurs,
and (ii) 1.0 times Executive’s then applicable annual Base
Salary.
	 
	 	 
	409A Tax Gross-Up:

	 	In the event it shall be determined that any payment
to Executive, whether under this Agreement or
otherwise, is subject to the additional tax
imposed by Section 409A of the Code, or any
interest or penalties are incurred by Executive
with respect to such additional tax (such tax
together with any such interest and penalties,
hereinafter collectively referred to as the
“409A Tax”), the Company shall pay Executive a
“Gross-Up Payment” in an amount such that after
payment by Executive of all taxes imposed upon
the Gross-Up Payment, including, without
limitation, any additional 409A Tax on the
Gross-Up Payment, Executive retains an amount of the
Gross- Up Payment equal to the initial 409A Tax.
Such Gross-Up Payment shall be paid no later
than the time Executive is required to pay the
409A Tax. Executive and the Company agree to use
reasonable efforts to avoid having any payment
or benefit provided to Executive being subject to the
409A Tax.

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Exhibit B

Mexico

Brazil

Venezuela

Norway

The United Kingdom

Denmark

Singapore

Qatar

Indonesia

Brunei

Australia

Thailand

India

Saudi Arabia

United Arab Emirates

Libya

Egypt

China

Vietnam

Nigeria

Angola

Ghana

Cameroon

Tunisia

-12-

 

Amendment to Employment Agreement

This Amendment to the Employment Agreement entered into this 15th day of August, 2010 by and
between RigNet, Inc. (“Company”) and William D. Sutton (“Executive”) (“Amendment”),

The
Company and Executive agree as follows:

          Whereas, Company and Executive desire to amend that certain Employment Agreement dated May 14,
2010 (“Employment Agreement”);

          Now Therefore, in consideration of the promises and mutual consideration set forth, it is
agreed by Company and Executive as follows:

	 	1.	 	The Section of Exhibit A of the Employment Agreement related to ‘Term’ is hereby
deleted in its entirety and the following is substituted in lieu thereof:
	 
	 	 	 	“Term: the initial term shall extend through November 15, 2010; provided that on November
16, 2010 the Term will automatically renew for an additional one year period unless either:
(a) the Company provides notice of non-renewal to the Executive on or before August 15,
2010; or (b) the Executive provides notice of non-renewal to the Company on or before August
27, 2010. On each anniversary of November 15, 2010 thereafter, the Term will automatically
renew for successive one year periods unless either party provides not less than 90 days
notice to the other party, subject to the parties’ respective rights under Section 7.
Notwithstanding the foregoing, upon a Change of Control (as defined in Section 9(d)), the
Term shall not be less than two years from the date of such Change of Control subject to the
parties’ respective rights under Section 7.”
	 
	 	2.	 	Except as expressly set forth above, the Employment Agreement shall remain in full force and
effect
as written.

          IN WITNESS WHEREOF, the Company and the Executive have executed this Amendment in
multiple originals to be effective for all purposes as of the Effective Date.

	 	 	 	 
	 	 
	 	RigNet, Inc.
	 	 
	 	 
	 	 
	 	/s/
Mark B. Slaughter
 

Mark B. Slaughter

	 	 
	 	Chief Executive Officer
	 	 
	 	 
	 	 
	 	Executive
	 	 
	 	 
	 	 
	 	/s/ William D. Sutton
 

William D. Sutton

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