Document:

Exhibit 4.13

 

FIRST AMENDMENT

TO

FIRST AMENDED

AND RESTATED LOAN AGREEMENT

 

Date: July 20, 2002

 

 

	

  BORROWER:

  	

   

  	

  LENDER:

  
	

   

  	

   

  	

   

  
	

  PIONEER

  DRILLING SERVICES,  LTD.

  	

   

  	

  THE

  FROST NATIONAL BANK

  
	

  formerly

  known as Pioneer Drilling Co., Ltd.

  	

   

  	

  P.O.

  Box 1600

  
	

  9310

  Broadway, Building 1

  	

   

  	

  San

  Antonio, Texas 78296

  
	

  San

  Antonio, Texas 78217

  	

   

  	

   

  

 

 

This First Amendment to First

Amended and Restated Loan Agreement (“Amendment”) is made as of the above date

by and between Borrower and Lender and modifies certain terms of a Loan Agreement

dated as of March 19, 2002 between Borrower and Lender, relating to a Line of

Credit in the amount of $1,000,000.00 (“Loan Agreement”). The Loan Agreement is

hereby amended to read as follows:

 

1.                                       Page 1, Section 1 (a) Borrowing Base Line of

Credit. - The last sentence is hereby deleted in its entirety and the

following is inserted in lieu thereof:

 

The

sums advanced under the Borrowing Base Line of Credit shall be used for support

of short term operating cash needs and to issue from time to time one or more

Letters of Credit for the account of Borrower. 

The aggregate face amount of the Letters of Credit at any time may not

exceed $1,000,000.00.  Borrower has

agreed to pay Lender in advance a fee of 1.00% of the amount of each Letter of

Credit.

 

2.                                       Page 2, definition of the term “Borrowing Base”

is hereby deleted in its entirety and the following inserted in lieu thereof:

 

As

used in this Loan Agreement the term “Borrowing Base” shall have the meaning

set forth herein below:

 

An

amount equal to 75% of the Borrower’s Eligible Accounts less the amount of all

outstanding Letters of Credit issued by Lender for Borrower’s account.

 

3.                                       All liens and security interests securing the

Line of Credit are expressly renewed and carried forward to secure the Line of

Credit as amended pursuant to this First Amendment.

 

4.                                       Unless otherwise defined herein, terms defined in

the Loan Agreement and used herein shall have the respective meanings set forth

in the Loan Agreement.

 

5.                                       All of the terms, provisions, covenants, warranties

and agreements contained in the Loan Agreement shall remain in full force and

effect as therein written, except as amended hereby. The Loan Agreement, as

amended, is hereby ratified and confirmed in all respects.

 

The parties hereto have caused

this First Amendment to Loan Agreement to be duly executed as of the date set

forth above.

 

 

NOTICE TO

OBLIGOR

(Required by

State Law)

 

For the purpose of this Notice,

the term “WRITTEN AGREEMENT” shall include the document set forth above,

together with each and every other document relating to and/or securing the

same loan transaction, regardless of the date of execution.

 

THIS WRITTEN

AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE

CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL

AGREEMENTS OF THE PARTIES.

 

THERE ARE NO

UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

	

  BORROWER:

  	

   

  	

  LENDER:

  
	

   

  	

   

  	

   

  
	

  PIONEER

  DRILLING SERVICES, LTD.

  	

   

  	

  THE

  FROST NATIONAL BANK

  
	

  formerly

  known as Pioneer Drilling Co., Ltd.

  	

   

  	

   

  
	

  By:  PDC Mgmt.

  Co., general partner

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

  By:

  	

   

  	

   

  
	

  Wm. Stacy Locke, President and CEO

  	

   

  	

  Jim

  Crosby, Executive Vice President

  
						

 

2Exhibit

4.14

 

THIRD

AMENDMENT TO AMENDED AND RESTATED LOAN AGREEMENT

 

THIS

THIRD AMENDMENT TO AMENDED AND RESTATED LOAN AGREEMENT (the “Amendment”)

is entered into as of the 20th day of

December, 2002, by and between  PIONEER DRILLING SERVICES, LTD., a Texas limited

partnership, formerly known as Pioneer

Drilling Co., Ltd., (Borrower”), and THE FROST

NATIONAL BANK, a national banking association (“Lender”) and

joined in by PIONEER DRILLING COMPANY, a Texas corporation, formerly known

as South Texas Drilling & Exploration, Inc. (“Pioneer”).

 

R E C I T A L S

 

A.            On March 19, 2002, Borrower and Lender entered into that

certain First Amended and Restated Loan Agreement (as amended from time, the “Loan

Agreement”) concerning the terms, conditions and covenants of certain

Credit Facilities.  On July 3, 2002, Borrower and Lender amended

the Loan Agreement by execution of that certain First Amendment to First

Amended and Restated Loan Agreement.  On

July 20, 2002, Borrower and Lender amended the Loan Agreement by execution of

that certain First Amendment to First Amended and Restated Loan Agreement.

 

B.            Borrower and Lender have agreed to make certain

modifications to the Loan Agreement as hereinafter more fully set forth.

 

C.            All capitalized terms not otherwise defined in this Third

Amendment shall have the same meanings as are set forth in the Agreement.

 

NOW, THEREFORE, for and

in consideration of the mutual covenants and promises herein contained, Lender

and Borrower agree as follows:

 

AGREEMENTS

 

1.             Section 8, subsection (e) is deleted in its entirety and

the following is substituted in its place:

 

(e)           Indebtedness.  Create,

incur or assume any indebtedness for borrowed money or issue or assume any

other note, debenture, bond or other evidences of indebtedness, or guarantee

any such indebtedness or such evidences of indebtedness of others, other than

(i) borrowings from Lender, (ii) borrowings from lenders other than

Lender, except that during the term of the Loan, Borrower shall be permitted to

incur or have outstanding indebtedness to other lenders provided that the

aggregate principal balance of all such debt outstanding at any time shall not

exceed $17,500,000.00 (exclusive of the subordinated debt in

 

 

the

total amount of $28,000,000.00 described in that certain Subordination

Agreement dated as of July 3, 2002 (the “Convertible Subordinated Debentures”)

and (iii) the Convertible Subordinated Debentures.

 

2.             The last sentence contained in the definition of

Leverage Ratio in Section 9, subsection (a) is hereby deleted and the following

is substituted in its place:

 

Beginning

with the fiscal quarter ending on March 31, 2003, Borrower shall be in

compliance with the foregoing covenant as of the end of each fiscal quarter of

Borrower calculated on a rolling four quarters basis.

 

3.             The definition of Cash Flow Coverage Ratio in Section 9,

subsection (b) and the two sentences immediately following such definition are

deleted and the following is substituted in its place:

 

Net Income +

Interest + Taxes + Depreciation

+ Amortization – Distributions or Dividends

– Maintenance Capital Expenditures (each for the preceding four fiscal

quarters)

Consolidated Interest Expense +

scheduled maturities of principal indebtedness +

cash taxes paid (each for the preceding four fiscal quarters)

 

As

used herein, “scheduled maturities of principal indebtedness” shall

exclude amounts due from Borrower on that certain $6,000,000 Advance Facility

at its maturity on June 30, 2003.

 

As

used herein, “Maintenance Capital Expenditures” shall mean: Amounts

actually paid for the routine maintenance of equipment, to the extent such

maintenance is required to keep that equipment in operating condition.

 

Beginning

with the fiscal quarter ending on March 31, 2003, Borrower shall be in

compliance with the foregoing covenant as of the end of each fiscal quarter of

Borrower calculated on a rolling four quarters basis.

 

4.             Subsection (e) of Section 11

is deleted in its entirety and the following is substituted in its place:

 

(e)           The occurrence of any event which

permits the acceleration of the maturity of any indebtedness in excess of

$100,000.00 owing by Borrower to any third party under any agreement or

understanding, or any default in the terms, conditions or covenants of that

certain Term Loan and Security Agreement dated on or about December 20, 2002

 

2

 

between

Borrower and Merrill Lynch Capital or any documents executed in connection

therewith and any renewals thereof.

 

5.             Except as specifically modified or amended herein, all

terms, provisions and requirements of the Agreement shall remain as written, and as amended from time to

time.  Borrower hereby reaffirms all

covenants, conditions, representations and warranties contained in the

Agreement, as amended by this Third Amendment.

 

[Balance of

Page Intentionally Left Blank]

 

[Signature

Appears on Next Page]

 

3

 

IN

WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be duly

executed as of the date first above written.

 

 

	

  BORROWER:

  	

   

  	

  LENDER:

  
	

   

  	

   

  	

   

  
	

  PIONEER DRILLING SERVICES, LTD., a Texas

  limited partnership formerly known as Pioneer

  Drilling Co., Ltd., a Texas limited

  partnership

  	

   

  	

  THE FROST NATIONAL BANK

  a national banking

  association

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

  By:

  	

   

  	

   

  
	

  By:

  	

  PDC Mgmt. Co., a Texas

  corporation, General Partner

  	

   

  	

  Printed

  Name:

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Title:

  	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Printed

  Name:

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Title:

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  AGREED

  TO:

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  PIONEER DRILLING COMPANY, a Texas corporation, formerly known as South

  Texas Drilling & Exploration, Inc., a Texas corporation (executing for

  purposes of joining in certain specific provisions, as noted above)

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

  By:

  	

   

  	

   

  	

   

  	

   

  
	

  Printed

  Name:

  	

   

  	

   

  	

   

  	

   

  
	

  Title:

  	

   

  	

   

  	

   

  	

   

  
																

 

4

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