Document:

EX-10.1

Exhibit 10.1

AMENDMENT NO. 4 TO AMENDED AND RESTATED LOAN AGREEMENT

     This AMENDMENT NO. 4 AMENDED AND RESTATED LOAN AGREEMENT (this “Agreement”) is entered and
effective as of March 31, 2009, by and among Layne Christensen Company, a Delaware corporation
(“Borrower”) and Bank of America, N.A. (as successor to LaSalle Bank National Association) (“Bank
of America”), as Administrative Agent (“Administrative Agent”), and Bank of America and the other
lenders a party hereto comprising the Required Lenders.

Recitals:

	A.	 	Borrower, Administrative Agent and Lenders are party to that certain Amended and Restated
Loan Agreement dated as of September 28, 2005, as amended by Amendment No. 1 to Amended and
Restated Loan Agreement, dated as of June 16, 2006, as amended by Amendment No. 2 to Amended
and Restated Loan Agreement, dated as of November 20, 2006, as amended by Amendment No. 3 to
Amended and Restated Loan Agreement, dated as of October 15, 2007 but effective as of August
28, 2007 (as amended from time to time, the “Loan Agreement”).
	 
	B.	 	Administrative Agent, the Required Lenders and Borrower have agreed to the provisions set
forth herein on the terms and conditions contained herein.

Agreement

     Therefore, in consideration of the mutual agreements herein and other sufficient
consideration, the receipt of which is hereby acknowledged, Borrower, Administrative Agent and the
Required Lenders hereby agree as follows:

1. Definitions. All references to the “Agreement” or the “Loan Agreement” in the Loan Agreement, any of the other
Loan Documents, and in this Agreement shall be deemed to be references to the Loan Agreement as it
may be amended, restated, extended, renewed, replaced, or otherwise modified from time to time.
Capitalized terms used and not otherwise defined herein have the meanings given them in the Loan
Agreement.

2. Effectiveness of Agreement. This Agreement shall become effective as of the date first written above, but only if this
Agreement has been executed by Borrower, Administrative Agent and the Required Lenders, and only if
all of the documents listed on Exhibit A to this Agreement have been delivered and, as
applicable, executed, each in form and substance satisfactory to Administrative Agent and the
Required Lenders.

3. Amendment. For all periods from and after the date of this Agreement, the Loan Agreement is amended as
follows:

     3.1. Accounting Terms.  

Section 2.5 of the Loan Agreement is deleted and replaced with the following:

“2.5. Accounting Terms. Unless the context otherwise requires, accounting terms herein
that are not defined herein shall be determined under GAAP. All financial measurements
contemplated hereunder respecting Borrower shall be made and calculated for Borrower and all
of its now existing or later acquired, created or organized Subsidiaries, if any, on a
consolidated and consolidating basis in accordance with GAAP unless expressly provided
otherwise herein.

 

 

For all purposes of this Agreement, including, without limitation,
calculating Total Funded Indebtedness, Priority Indebtedness, Indebtedness and all defined
terms in Section 14 of this Agreement, and for purposes of determining compliance with the
covenants contained in Section 14 of this Agreement, any election by the Borrower to measure
an item of Indebtedness using fair value (as permitted by Statement of Financial Accounting
Standards No. 159 or any similar accounting standard, as amended or replaced from time to
time) shall be disregarded, and such calculation or determination shall be made as if any
such election had not been made.”

     3.2. Indebtedness.  Section 13.2.6 of the Loan Agreement is deleted and replaced with the following:

“13.2.6. Indebtedness, including the Seller Earn Out and Hedge Obligations, disclosed on
section 10.18 of the Disclosure Schedule, provided, however, the Indebtedness (other than
Hedge Obligations (including new Hedge Obligations and increases thereof subject to the next
sentence) and Indebtedness (including new Indebtedness and increases thereof) permitted by
the terms of Section 13.1.6) disclosed thereon may not be increased above the amounts
existing on the Effective Date. Notwithstanding the foregoing, the Borrower shall not, and
shall not permit any Subsidiary to, enter into or be bound by any Hedging Obligations with
respect to commodities other than Hedging Obligations by the Borrower or a Subsidiary
Guarantor with respect to PDP Reserves of the Borrower and its Subsidiaries; provided that
the notional volumes for all such Hedging Obligations permitted by this sentence shall not
at any time exceed (I) for the period from and including April 1, 2009 through and including
April 30, 2010, 125% of the reasonably anticipated projected production over the following
12-month period from PDP Reserves of the Borrower and its Subsidiaries, and (II) for all
other periods, 75% of the reasonably anticipated projected production over the following
12-month period from PDP Reserves of the Borrower and its Subsidiaries. For purposes of
this paragraph, “PDP Reserves” shall mean “proved developed producing reserves” as defined
by the Board of Directors of the Society for Petroleum Engineers (SPE) Inc.”

4. Representations and Warranties of Borrower. Borrower hereby represents and warrants to Administrative Agent and the Lenders that (i) Borrower’s
execution of this Agreement has been duly authorized by all requisite action of Borrower; (ii) no
consents are necessary from any third parties for Borrower’s execution, delivery or performance of
this Agreement, (iii) this Agreement, the Loan Agreement, and each of the other Loan Documents,
constitute the legal, valid and binding obligations of Borrower enforceable against Borrower in
accordance with their terms, except to the extent that the enforceability thereof against Borrower
may be limited by bankruptcy, insolvency or other laws affecting the enforceability of creditors
rights generally or by equity principles of general application, (iv) all of the representations
and warranties contained in Section 10 of the Loan Agreement are true and correct with the same
force and effect as if made on and as of the date of this Agreement, (v) after giving effect to
this Agreement, there is no Existing Default, (vi) since September 28, 2005, there has been no
change in the financial condition or business operations of Borrower or any other Covered Person
which could reasonably be expected to result in a Material Adverse Effect, (vii) there are no
proceedings of any kind, pending or threatened against Borrower or any other Covered Person, which
could reasonably be expected to result in a Material Adverse Effect, and (viii) there are no
Security Interests with respect to the Borrower or its assets, except for Permitted Security
Interests.

5. Effect of Agreement. The execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any
right, power or remedy of Administrative Agent or any Lender under the Loan Agreement or any of the
other Loan Documents, nor constitute a waiver of any provision of the Loan Agreement, any of the
other Loan Documents or any existing Default or Event of Default, nor, except as

2

 

set forth in Section 3 above, be or be construed or deemed to be, an amendment or modification of any provision
of the Loan Agreement or the other Loan Documents.

6. Reaffirmation. Borrower hereby represents, warrants, acknowledges and confirms that (i) the Loan Agreement and the
other Loan Documents remain in full force and effect, (ii) Borrower has no defenses to its
obligations under the Loan Agreement and the other Loan Documents, and (iii) Borrower has no claim
against Administrative Agent or any Lender arising from or in connection with the Loan Agreement or
the other Loan Documents and hereby waives, releases and discharges forever any claims the Borrower
may have against Administrative Agent or any Lender arising on or prior to the date hereof.

7. Governing Law.  This Agreement shall be governed by and construed under the laws of the State of Illinois without
giving effect to choice or conflicts of law principles thereunder.

8. Section Titles.  The section titles in this Agreement are for convenience of reference only and shall not be
construed so as to modify any provisions of this Agreement.

9. Counterparts; Facsimile Transmissions.  This Agreement may be executed in one or more counterparts and on separate counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument. Signatures to this Agreement may be given by facsimile or other electronic
transmission, and such signatures shall be fully binding on the party sending the same.

10. Patriot Act Notice. Administrative Agent, each Lender and Bank of America (for itself and not on behalf of any other
party) hereby notifies each Borrower, each Guarantor, each other Covered Person and each of their
Subsidiaries that, pursuant to the requirements of the USA Patriot Act, Title III of Pub. L.
107-56, signed into law October 26, 2001 (the “Act”), it is required to obtain, verify and record
information that identifies each Borrower, each Guarantor, each other Covered Person and each of
their Subsidiaries, which information includes the name and address of the Borrower, each
Guarantor, each other Covered Person and each of their Subsidiaries and other information that will
allow Administrative Agent, such Lender or Bank of America, as applicable, to identify the
Borrower, each Guarantor, each other Covered Person and each of their Subsidiaries in accordance
with the Act.

11. Incorporation By Reference.  Administrative Agent, the Lenders and Borrower hereby agree that all of the terms of the Loan
Documents are incorporated in and made a part of this Agreement by this reference.

12. Statutory Notice — Insurance.  

The following notice is given pursuant to Section 10 of the Collateral Protection Act set forth in
Chapter 815 Section 180/1 of the Illinois Compiled Statutes (1996); nothing contained in such
notice shall be deemed to limit or modify the terms of the Loan Documents:

UNLESS YOU PROVIDE EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY YOUR AGREEMENT WITH US, WE
MAY PURCHASE INSURANCE AT YOUR EXPENSE TO PROTECT OUR INTERESTS IN YOUR COLLATERAL. THIS
INSURANCE MAY, BUT NEED NOT, PROTECT YOUR INTERESTS. THE COVERAGE THAT WE PURCHASE MAY NOT
PAY ANY CLAIM THAT YOU MAKE OR ANY CLAIM THAT IS MADE AGAINST YOU IN CONNECTION WITH THE
COLLATERAL. YOU MAY LATER CANCEL ANY INSURANCE PURCHASED BY US, BUT ONLY AFTER PROVIDING
EVIDENCE THAT YOU HAVE OBTAINED INSURANCE AS REQUIRED BY OUR AGREEMENT. IF WE PURCHASE
INSURANCE FOR THE COLLATERAL, YOU WILL BE RESPONSIBLE FOR THE

3

 

COSTS OF THAT INSURANCE, INCLUDING THE INSURANCE PREMIUM, INTEREST AND ANY OTHER CHARGES WE MAY IMPOSE IN CONNECTION
WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR
EXPIRATION OF THE INSURANCE. THE COSTS OF THE INSURANCE MAY BE ADDED TO YOUR TOTAL
OUTSTANDING BALANCE OR OBLIGATION. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF
INSURANCE YOU MAY BE ABLE TO OBTAIN ON YOUR OWN.

13. Statutory Notice — Oral Commitments. Nothing contained in the following notice shall be deemed to limit or modify the terms of the Loan
Documents:

ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING
REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE. TO
PROTECT YOU (BORROWER) AND US (CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY
AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE
COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE
IN WRITING TO MODIFY IT.

Borrower acknowledges that there are no other agreements between Administrative Agent, Lenders, and
Borrower, oral or written, concerning the subject matter of the Loan Documents, and that all prior
agreements concerning the same subject matter, including any proposal or commitment letter, are
merged into the Loan Documents and thereby extinguished.

{remainder of page intentionally left blank; signature pages follow}

4

 

IN WITNESS WHEREOF, this Agreement has been duly executed as of the date first above written.

	 	 	 	 	 
	 	LAYNE CHRISTENSEN COMPANY, a Delaware corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Jerry W. Fanska, Senior Vice President — Finance 	 
	 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A. (as successor to LaSalle

Bank National Association), as a Lender

 	 
	 	Name:  	/s/ Dianne M. Smith
 	 
	 	 	Title: VP 	 
	 	 	 	 
	 
	 	BANK OF AMERICA, N.A. (as successor to LaSalle

Bank National Association), as Administrative Agent

 	 
	 	Name:  	/s/ Dianne M. Smith
 	 
	 	 	Title:      VP 	 
	 

	 	 	 	 	 
	 	NATIONAL CITY BANK, as successor by merger to

National City Bank of Indiana, as a Lender

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 
	 	HARRIS N.A., as a Lender

 	 
	 	By:  	/s/ Joann L. Holman
 	 
	 	 	Name:  	Joann L. Holman 	 
	 	 	Title:  	Managing Director 	 
	 
	 
	 	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, as a Lender

 	 
	 	By:  	/s/ BL
 	 
	 	 	Name:  	Brian E. Lemons 	 
	 	 	Title:  	Vice President 	 
	 
	 
	 	M&I MARSHALL & ILSLEY BANK, as a Lender

 	 
	 	By:  	/s/ Aaron M. Wiechman
 	 
	 	 	Name:  	Aaron M. Wiechman 	 
	 	 	Title:  	AVP 	 

5

 

	 	 	 	 	 

	 	 	 	 	 
	 	M&I MARSHALL & ILSLEY BANK, as a Lender

 	 
	 	By:  	/s/ Michael H. Doyle
 	 
	 	 	Name:  	Michael H. Doyle 	 
	 	 	Title:  	VP 	 
	 
	 	FIRST BANK, as a Lender

 	 
	 	By:  	/s/ Brenda J. Laux
 	 
	 	 	Name:  	Brenda J. Laux 	 
	 	 	Title:  	Executive Vice President 	 
	 
	 	ALLIED IRISH BANKS, P.L.C., as a Lender

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

{end of signatures}

6

 

UNCONDITIONAL REAFFIRMATION OF GUARANTY

     This Unconditional Reaffirmation of Guaranty to Amendment No. 4 to Amended and Restated Loan
Agreement is executed by each of the undersigned (individually, and collectively, and jointly and
severally, “Guarantor”) and is dated as of March 31, 2009 (this “Reaffirmation”). Each Guarantor
acknowledges and consents to all changes, terms and provisions set forth in the foregoing Amendment
No. 4 to Amended and Restated Loan Agreement among the Borrower, Administrative Agent, and the
Lenders of even date with this Reaffirmation (“Amendment No. 4”) and agrees that all such changes
are in the best interests of the Borrower and Guarantor. In consideration of the financial
accommodations granted and which may hereafter be granted to the Borrower by Administrative Agent
and the Lenders, in consideration of Administrative Agent’s, the Issuing Lender’s and the Lenders’
reliance on each Unlimited Guaranty executed by each Guarantor in favor of the Administrative Agent
for the benefit of the Administrative Agent and the Lenders and the other Loan Documents to which
Guarantor is a party, and for other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, each Guarantor, irrevocably and unconditionally reaffirms each
Unlimited Guaranty and the other Loan Documents to which it is a party and its continuing guarantee
of the payment and performance of all current and future Loan Obligations. Guarantor agrees that
the validity and enforceability of each Unlimited Guaranty and the other Loan Documents to which it
is a party is not and shall not be affected in any way or manner by any of the changes, terms and
provisions set forth in Amendment No. 4.

     Each Guarantor hereby acknowledges and confirms that (i) each Unlimited Guaranty and each
other Loan Documents to which it is a party is in full force and effect, (ii) such Guarantor has no
defenses to its obligations under each Unlimited Guaranty and the other Loan Documents to which it
is a party, and (iii) such Guarantor has no claim against Administrative Agent, the Issuing Lender
or any Lender arising from or in connection with the Loan Agreement or the other Loan Documents,
and such Guarantor hereby releases and waives and discharges forever any such claims it may have
against Administrative Agent, the Issuing Lender or any Lender arising from or in connection with
the Loan Agreement, each Unlimited Guaranty or the other Loan Documents.

     Each Guarantor hereby represents and warrants to Administrative Agent, the Issuing Lender and
each Lender as of the date hereof that (i) this Reaffirmation has been duly authorized by such
Guarantor’s governing body, members or shareholders, as the case may be, (ii) no consents are
necessary from any third person for such Guarantor’s execution, delivery or performance of this
Reaffirmation which have not been obtained, and (iii) this Reaffirmation and all other Loan
Documents to which it is a party constitutes the legal, valid and binding obligation of such
Guarantor enforceable against such Guarantor in accordance with its terms except as the enforcement
thereof may be limited by bankruptcy, insolvency or other laws related to creditors rights
generally or by the application of equity principles.

{remainder of page intentionally left blank signature pages follow}

7

 

	 	 	 	 	 
	 	BOYLES BROS. DRILLING COMPANY, 

a Utah corporation

CHRISTENSEN BOYLES CORPORATION, 

a Delaware corporation

INTERNATIONAL DIRECTIONAL SERVICES, LLC, 

a Delaware limited liability company

LAYNE TEXAS, INCORPORATED, 

a Delaware corporation

MID-CONTINENT DRILLING COMPANY, 

a Delaware corporation

SHAWNEE OIL & GAS, L.L.C., 

a Delaware limited liability company

STAMM-SCHEELE INCORPORATED, 

a Louisiana corporation

VIBRATION TECHNOLOGY, INC., 

a Delaware corporation

LAYNE ENERGY, INC., a Delaware corporation

LAYNE ENERGY CHERRYVALE, LLC, 

a Delaware limited liability company

LAYNE ENERGY CHERRYVALE PIPELINE, LLC, 

a Delaware limited liability company

LAYNE ENERGY DAWSON, LLC, 

a Delaware limited liability company

LAYNE ENERGY DAWSON PIPELINE, LLC, 

a Delaware limited liability company

WINDSOR RESOURCES, LLC, 

a Delaware limited liability company, formerly

known as Layne Energy Illinois, LLC,

WINDSOR RESOURCES PIPELINE, LLC,

a Delaware limited liability company, formerly

known as Layne Energy Illinois Pipeline, LLC

LAYNE ENERGY MARKETING, LLC,

a Delaware limited liability company

LAYNE ENERGY OPERATING, LLC, 

a Delaware limited liability company

 	 

8

 

	 	 	 	 	 

	 	 	 	 	 
	 	LAYNE ENERGY OSAGE, LLC,

a Delaware limited liability company

LAYNE ENERGY PIPELINE, LLC, 

a Delaware limited liability company

LAYNE ENERGY PRODUCTION, LLC, 

a Delaware limited liability company

LAYNE ENERGY RESOURCES, INC., 

a Delaware corporation

LAYNE ENERGY SYCAMORE, LLC, 

a Delaware limited liability company

LAYNE ENERGY SYCAMORE PIPELINE, LLC, 

a Delaware limited liability company

LAYNE WATER DEVELOPMENT AND

STORAGE, LLC,

a Delaware limited liability company

CHERRYVALE PIPELINE, LLC, 

a Kansas limited liability company

REYNOLDS, INC., 

an Indiana corporation

INLINER TECHNOLOGIES, LLC, 

an Indiana limited liability company

LINER PRODUCTS, LLC, 

an Indiana limited liability company

REYNOLDS INLINER, LLC, 

an Indiana limited liability company

REYNOLDS TRANSPORT CO., 

an Indiana corporation

COLLECTOR WELLS INTERNATIONAL, INC., 

an Ohio corporation

INTERNATIONAL WATER CONSULTANTS, INC.,

an Ohio corporation

INLINER AMERICAN, INC., a Delaware corporation
formerly known as American Water Services
Underground Infrastructure, Inc.

 	 
	 	 	 

9

 

	 	 	 	 	 

	 	 	 	 	 
	 	MAG CON, INC., a Louisiana corporation

MEADORS CONSTRUCTION CO., INC.,

a Florida corporation

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska 	 
	 	 	Title:  	Vice President 	 
	 
	 	LAYNE DRILLING PTY LTD,

an Australian company

LAYNE CHRISTENSEN AUSTRALIA PTY LTD, 

an Australian company

STANLEY MINING SERVICES PTY LTD, 

an Australian company

SMS HOLDINGS PTY LTD, 

an Australian company

WEST AFRICAN HOLDINGS PTY LTD, 

an Australian company

WEST AFRICAN DRILLING SERVICES PTY LTD, 

an Australian company

WEST AFRICAN DRILLING SERVICES (NO. 2) PTY

LTD, an Australian company

STANLEY MINING SERVICES (BOTSWANA) PTY

LTD., a Botswana, Africa entity, formerly known as

Whitfield (Pty) Ltd.

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska 	 
	 	 	Title:  	Director 	 

10

 

	 	 	 	 	 

Exhibit A

Documents and Requirements

	1.	 	Amendment No. 4 to Amended and Restated Loan Agreement.
	 
	2.	 	Reaffirmation of Guaranty.
	 
	3.	 	Amendment to Master Shelf Agreement for the Term Indebtedness.

11EX-10.2

Exhibit 10.2

LETTER AMENDMENT NO. 6 TO MASTER SHELF AGREEMENT

March 31, 2009

Prudential Investment Management, Inc.

The Prudential Insurance Company of America

Pruco Life Insurance Company

Security Life of Denver Insurance Company

Prudential Annuities Life Assurance Corporation (f/k/a American Skandia Life Assurance Corporation)

Prudential Retirement Insurance and Annuity Company

Time Insurance Company (f/k/a Fortis Insurance Company)

American Memorial Life Insurance Company

Physicians Mutual Insurance Company

c/o Prudential Capital Group

2200 Ross Avenue, Suite 4200E

Dallas, Texas 75201

Ladies and Gentlemen:

     We refer to the Master Shelf Agreement dated as of July 31, 2003 and amended by Letter
Amendment No. 1 to Master Shelf Agreement dated May 15, 2004, Letter Amendment No. 2 to Master
Shelf Agreement dated September 28, 2005, Letter Amendment No. 3 to Master Shelf Agreement dated
June 16, 2006, Letter Amendment No. 4 to Master Shelf Agreement dated November 20, 2006 and Letter
Amendment No. 5 to Master Shelf Agreement dated October 15, 2007 (as so amended, the “Master Shelf
Agreement”) among Layne Christensen Company (the “Company”), Prudential Investment Management,
Inc., The Prudential Insurance Company of America, Pruco Life Insurance Company, Security Life of
Denver Insurance Company, Prudential Annuities Life Assurance Corporation (f/k/a American Skandia
Life Assurance Corporation), Prudential Retirement Insurance and Annuity Company, Time Insurance
Company (f/k/a Fortis Insurance Company), American Memorial Life Insurance Company and Physicians
Mutual Insurance Company, pursuant to which the Company has issued and the Purchasers have
purchased (i) Series A Notes of the Company in the aggregate principal amount of $40,000,000 and
(ii) Series B Notes of the Company in the aggregate principal amount of $20,000,000. Unless
otherwise defined herein, the terms defined in the Master Shelf Agreement shall be used herein as
therein defined.

     The Company desires to amend the Master Shelf Agreement as set forth below, and Prudential and
the Purchasers are willing to agree to such amendments, upon and subject to the terms and
conditions set forth herein (this “Letter Amendment”).

     Therefore, for good and valuable consideration, it is hereby agreed by you and us as follows:

     1. Amendments to the Agreement. Subject to the accuracy of the representations and warranties
set forth in paragraph 2 hereof and satisfaction of the conditions set forth in paragraph 3 hereof,
the undersigned holders of the Notes hereby agree with the Company to amend, effective as of the
date first above written, the Master Shelf Agreement as follows:

     (a) Paragraph 6. NEGATIVE COVENANTS. Paragraph 6 of the Master Shelf Agreement is amended by
amending and restating Paragraph 6K in its entirety as follows:

“6K. Commodity Hedging Obligations. The Company shall not, and shall not permit any
Subsidiary to, enter into or be bound by any Hedging Obligations with respect to commodities
other than Hedging Obligations by the Company or a Subsidiary Guarantor with respect to PDP
Reserves of the Company and its Subsidiaries; provided that the notional volumes for all
such Hedging Obligations permitted pursuant to this paragraph 6K shall not at any time
exceed (I) for the period from and including April 1, 2009 through and including April 30,
2010, 125% of the reasonably anticipated projected production over the following 12-month
period from PDP Reserves of the Company and its Subsidiaries, and (II) for all other
periods, 75% of the reasonably anticipated projected production over the following 12-month
period from PDP Reserves of the Company and its Subsidiaries. For purposes of this
paragraph, “PDP Reserves” shall mean “proved developed producing reserves” as defined by the
Board of Directors of the Society for Petroleum Engineers (SPE) Inc.”

 

 

     (b) Paragraph 10. DEFINITION; ACCOUNTING MATTERS. Paragraph 10 of the Master Shelf Agreement
is amended by adding the following to the end of Paragraph 10C:

For purposes of calculating Indebtedness, Priority Debt, Total Indebtedness and all other
defined terms in Paragraph 10 of this Agreement, and for purposes of determining compliance
with the covenants contained in Paragraph 6A of this Agreement, any election by the Company
to measure an item of Indebtedness using fair value (as permitted by Statement of Financial
Accounting Standards No. 159 or any similar accounting standard, as amended or replaced from
time to time) shall be disregarded, and such calculation or determination shall be made as
if any such election had not been made.”

     2. Representations and Warranties. In order to induce Prudential and the Purchasers to enter
into this Letter Amendment, the Company hereby represents and warrants as follows:

     (a) No Defaults. No Default or Event of Default exists under the Master Shelf Agreement, the
Notes, the Subsidiary Guaranty Agreement or any other agreement or instrument executed in
connection therewith, and no default or event of default exists under the Bank Agreement, any
agreement or instrument executed in connection therewith or any other material contract or
agreement to which the Company or any of the Subsidiary Guarantors is a party, and, to the
Company’s knowledge, no such default or event of default is imminent.

     (b) Representations and Warranties. The representations and warranties of the Company and the
Subsidiary Guarantors set forth in the Master Shelf Agreement and the Subsidiary Guaranty Agreement
are true and correct on and as of the date hereof, both before and after giving effect to the
effectiveness of this Letter Amendment (except to the extent such representations and warranties
expressly are limited to an earlier date, in which case such representations and warranties are
true and correct on and as of such earlier date).

     3. Effectiveness. This Letter Amendment shall be effective on and as of the date first written
above, subject to the satisfaction of the condition precedent that Prudential and the Purchasers
shall each have received each of the following, in form, scope and substance satisfactory to each
of them:

     (a) duly executed counterparts of this Letter Amendment from all parties hereto;

     (b) satisfactory written evidence of the consent to the execution and delivery of this Letter
Amendment by the Subsidiary Guarantors;

     (c) satisfactory written evidence of the consent to the execution and delivery of this Letter
Amendment by the Company’s lenders under the Bank Agreement;

     (d) satisfactory written evidence of the amendment of similar provisions of the Bank
Agreement; and

     (e) all documents evidencing other necessary corporate action and governmental approvals, if
any, with respect to the amendments to the Master Shelf Agreement herein contained.

     4. Miscellaneous.

     (a) Effect on Agreement. On and after the effective date of this Letter Amendment, each
reference in the Master Shelf Agreement to “this Agreement”, “hereunder”, “hereof”, or words of
like import referring to the Master Shelf Agreement, and each reference in the Notes to “the
Agreement”, “thereunder”, “thereof”, or words of like import referring to the Master Shelf
Agreement, shall mean the Master Shelf Agreement as amended by this Letter Amendment. The Master
Shelf Agreement, as amended by this Letter Amendment, is and shall continue to be in full force and
effect and is hereby in all respects ratified and confirmed. The execution, delivery and
effectiveness of this Letter Amendment shall not, except as expressly provided herein, operate as a
waiver of any right, power or remedy under the Master Shelf Agreement nor constitute a waiver of
any provision of the Master Shelf Agreement.

 

 

     (b) Counterparts. This Letter Amendment may be executed in any number of counterparts and by
any combination of the parties hereto in separate counterparts, each of which counterparts shall be
an original and all of which taken together shall constitute one and the same Letter Amendment.

     (c) Governing Law. THIS LETTER AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH,
AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK.

[Remainder of this page blank; signature pages follow.]

 

 

     If you agree to the terms and provisions hereof, please evidence your agreement by executing
and returning at least a counterpart of this Letter Amendment to Layne Christensen Company, 1900
Shawnee Mission Parkway, Mission Woods, Kansas 66205, Attention: Vice President — Finance and
Treasurer.

	 	 	 	 	 
	 	Very truly yours,

LAYNE CHRISTENSEN COMPANY

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska 	 
	 	 	Title:  	Sr. VP—Finance 	 
	 

	 	 	 	 	 
	Agreed as of the date first above written:

PRUDENTIAL INVESTMENT MANAGEMENT, INC.

 	 	 
	By:  	/s/ BL
 	 	 
	 	Name:  	Brian E. Lemons 	 	 
	 	Title:  	Vice President 	 	 
	 
	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

 	 	 
	By:  	/s/ BL
 	 	 
	 	Name:  	Brian E. Lemons 	 	 
	 	Title:  	Vice President 	 	 
	 
	PRUCO LIFE INSURANCE COMPANY

 	 	 
	By:  	/s/ BL
 	 	 
	 	Name:  	Brian E. Lemons 	 	 
	 	Title:  	Vice President 	 	 
	 
	SECURITY LIFE OF DENVER INSURANCE COMPANY

 	 	 
	By:  	Prudential Private Placement Investors,
 	 	 
	 	L.P. (as Investment Advisor) 	 	 

	 	 	 	 	 
	By:  	
Prudential Private Placement Investors, Inc.
 	 	 
	 	(as its General Partner) 	 	 
	 	 	 
	By:  	                           /s/ BL
 	 	 
	 	Name:  	Brian E. Lemons 	 	 
	 	Title:  	Vice President 	 	 
	 

Signature Page to Letter Amendment No. 6 to Master Shelf Agreement

 

 

	 	 	 	 	 
	PRUDENTIAL ANNUITIES LIFE ASSURANCE CORPORATION

(F/K/A AMERICAN SKANDIA LIFE ASSURANCE CORPORATION)

 	 	 
	By:  	Prudential Investment Management, Inc.,
 	 	 
	 	as investment manager 	 	 
	 	 	 
	By:  	/s/ BL
 	 	 
	 	Name:  	Brian E. Lemons 	 	 
	 	Title:  	Vice President 	 	 
	 

	 	 	 	 	 
	PRUDENTIAL RETIREMENT INSURANCE AND ANNUITY COMPANY

 	 	 
	By:  	Prudential Investment Management, Inc.,
 	 	 
	 	as investment manager 	 	 
	 	 	 
	By:  	/s/ BL
 	 	 
	 	Name:  	Brian E. Lemons 	 	 
	 	Title:  	Vice President 	 	 
	 

	 	 	 	 	 
	TIME INSURANCE COMPANY

(F/K/A FORTIS INSURANCE COMPANY)

 	 	 
	By:  	Prudential Private Placement Investors,
 	 	 
	 	L.P. (as Investment Advisor) 	 	 
	 	 	 
	By:  	Prudential Private Placement Investors, Inc.
 	 	 
	 	(as its General Partner) 	 	 
	 	 	 
	By:  	/s/ BL
 	 	 
	 	Name:  	Brian E. Lemons 	 	 
	 	Title:  	Vice President 	 	 
	 

	 	 	 	 	 
	AMERICAN MEMORIAL LIFE INSURANCE COMPANY

 	 	 
	By:  	Prudential Private Placement Investors,
 	 	 
	 	L.P. (as Investment Advisor) 	 	 
	 	 	 
	By:  	Prudential Private Placement Investors, Inc.
 	 	 
	 	(as its General Partner) 	 	 

	 	 	 	 	 
	By:  	/s/ BL
 	 	 
	 	Name:  	Brian E. Lemons 	 	 
	 	Title:  	Vice President 	 	 
	 

Signature Page to Letter Amendment No. 6 to Master Shelf Agreement

 

 

	 	 	 	 	 
	PHYSICIANS MUTUAL INSURANCE COMPANY

 	 	 
	By:  	Prudential Private Placement Investors,
 	 	 
	 	L.P. (as Investment Advisor) 	 	 
	 	 	 
	By:  	Prudential Private Placement Investors, Inc.
 	 	 
	 	(as its General Partner) 	 	 

	 	 	 	 	 
	By:  	/s/ BL
 	 	 
	 	Name:  	Brian E. Lemons 	 	 
	 	Title:  	Vice President 	 	 
	 

Signature Page to Letter Amendment No. 6 to Master Shelf Agreement

 

 

CONSENT

     The undersigned, as Guarantors under the Subsidiary Guaranty Agreement dated as of July 31,
2003 (the “Guaranty”) in favor of the holders from time to time of the Notes issued pursuant to the
Master Shelf Agreement referred to in the foregoing Letter Amendment, hereby consent to said Letter
Amendment and hereby confirm and agree that the Guaranty is, and shall continue to be, in full
force and effect and is hereby confirmed and ratified in all respects except that, upon the
effectiveness of, and on and after the date of, said Letter Amendment, all references in the
Guaranty to the Master Shelf Agreement, “thereunder”, “thereof”, or words of like import referring
to the Master Shelf Agreement shall mean the Master Shelf Agreement as amended by said Letter
Amendment.

	 	 	 	 	 
	 	BOYLES BROS. DRILLING COMPANY

CHRISTENSEN BOYLES CORPORATION

INTERNATIONAL DIRECTIONAL SERVICES, L.L.C.

LAYNE TEXAS, INCORPORATED

MID-CONTINENT DRILLING COMPANY

SHAWNEE OIL & GAS, L.L.C.

STAMM-SCHEELE INCORPORATED

VIBRATION TECHNOLOGY, INC.

LAYNE ENERGY, INC.

LAYNE ENERGY CHERRYVALE, LLC

LAYNE ENERGY CHERRYVALE PIPELINE, LLC

LAYNE ENERGY DAWSON, LLC

LAYNE ENERGY DAWSON PIPELINE, LLC

WINDSOR RESOURCES, LLC (f/k/a Layne Energy Illinois, LLC)

WINDSOR RESOURCES PIPELINE, LLC

   (f/k/a Layne Energy Illinois Pipeline, LLC)

LAYNE ENERGY MARKETING, LLC

LAYNE ENERGY OPERATING, LLC

LAYNE ENERGY OSAGE, LLC

LAYNE ENERGY PIPELINE, LLC

LAYNE ENERGY PRODUCTION, LLC

LAYNE ENERGY RESOURCES, INC.

LAYNE ENERGY SYCAMORE, LLC

LAYNE ENERGY SYCAMORE PIPELINE, LLC

LAYNE WATER DEVELOPMENT AND STORAGE, LLC

CHERRYVALE PIPELINE, LLC

REYNOLDS, INC.

INLINER TECHNOLOGIES, LLC

LINER PRODUCTS, LLC

REYNOLDS INLINER, LLC

REYNOLDS TRANSPORT CO.

COLLECTOR WELLS INTERNATIONAL, INC.

INTERNATIONAL WATER CONSULTANTS, INC.

INLINER AMERICAN, INC.

   (f/k/a American Water Services Underground Infrastructure, Inc.)

MAG CON, INC.

MEADORS CONSTRUCTION CO., INC.

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska 	 
	 	 	Title:  	Vice President of each of the above entities 	 

 

 

	 	 	 	 	 
	 	LAYNE DRILLING PTY LTD.

LAYNE CHRISTENSEN AUSTRALIA PTY LTD.

STANLEY MINING SERVICES PTY LTD.

SMS HOLDINGS PTY LTD.

WEST AFRICAN HOLDINGS PTY LTD.

WEST AFRICAN DRILLING SERVICES PTY LTD.

WEST AFRICAN DRILLING SERVICES PTY (NO. 2) LTD.

STANLEY MINING SERVICES (BOTSWANA) PTY LTD.

   (f/k/a Whitfield (Pty) Ltd.))

 	 
	 	By:  	/s/ Jerry W. Fanska
 	 
	 	 	Name:  	Jerry W. Fanska 	 
	 	 	Title:  	Director of each of the above entities

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