Document:

exv10w3

 

Exhibit 10.3

EMPLOYMENT AGREEMENT

     THIS AGREEMENT, dated August 7, 2007, is between CARRIAGE SERVICES, INC., a Delaware
corporation (the “Company”), and Terry E. Sanford, a resident of Fort Bend County, Texas (the
“Employee”).

     1. Employment Term. The Company hereby continues the employment of the Employee for a
term commencing as of the date first above written and, subject to earlier termination or extension
as provided in Section 7 hereof, continuing until August 6, 2010 (such term being herein referred
to as the “term of this Agreement”). The term of this Agreement shall automatically be renewed on
an annual basis thereafter, unless terminated by either party upon sixty (60) days’ written notice
prior to the end of the term then in effect. The Employee agrees to accept such employment and to
perform the services specified herein, all upon the terms and conditions hereinafter stated.

     2. Duties. The Employee shall serve the Company and shall report to, and be subject to
the general direction and control of the Chief Executive Officer of the Company. The Employee shall
faithfully, diligently, competently, and to the best of Employee’s ability, perform the management
and administrative duties of Senior Vice President, Chief Accounting Officer and Treasurer. The
Employee shall also serve as Senior Vice President, Chief Accounting Officer and Treasurer of any
subsidiary of the Company as requested by the Company, and the Employee shall perform such other
duties as are from time to time assigned to him by the Chief Executive Officer as are not
inconsistent with the provisions hereof. The Employee represents and warrants to the Company that
Employee is not subject to any obligation to any third party that would restrict or interfere with
Employee’s ability to perform hereunder.

     3. Extent of Service. The Employee shall devote his full business time and attention
to the business of the Company, and, except as may be specifically permitted by the Company, shall
not be engaged in any other business activity during the term of this Agreement. The foregoing
shall not be construed as preventing the Employee (i) from making passive investments in other
businesses or enterprises, and (ii) from engaging in other civic, charitable and business
activities, provided, however, that such investments and activities will not require services on
the part of the Employee which would in any way impair the performance of his duties under this
Agreement.

     4. Compensation. During the term of this Agreement, the Company shall pay the
Employee an annual salary of not less than $190,000.00 per full calendar year of service completed
(“Base Salary”), appropriately prorated for partial months at the commencement and end of the term
of this Agreement. The Employee’s salary and benefits will be reviewed annually, and any increase
therein shall remain in the sole discretion of the Company, acting through the Compensation
Committee of its Board of Directors if required. The salary set forth herein shall not be subject
to reduction and shall be payable in bi-weekly installments in accordance with the payroll policies
of the Company in effect from time to time during the term of this Agreement. The Company shall
have the right to deduct from any payment of all

 

 

compensation to the Employee hereunder (x) any federal, state or local taxes required by law
to be withheld with respect to such payments, and (y) any other amounts specifically authorized to
be withheld or deducted by the Employee.

     5. Benefits. In addition to the Base Salary, the Employee shall be entitled to
participate in the following benefits during the term of this Agreement:

     (i) Consideration for an annual performance-based bonus within the sole discretion of
the Company, as may be recommended by the Chief Executive Officer and approved by the
Compensation Committee of the Company’s Board of Directors. A target bonus will be set by
the Company, and approved by the Compensation Committee of the Company’s Board of Directors,
on an annual basis.

     (ii) Eligibility for consideration of Awards of Restricted Stock or other
incentive-based compensation under the terms of the Company’s 2006 Long Term Incentive Plan
or one or more of the Company’s other incentive plans, as the Chief Executive Officer in his
sole discretion may determine and subject to approval of the Company’s Compensation
Committee.

     (iii) Four weeks of paid vacation in each calendar year, subject to the Company’s
personnel policies respecting such matters.

     (iv) Participation in the Company’s group health and hospitalization program, and
inclusion in such other employee benefits, as are available generally to executive-level
employees of the Company.

     (v) Reimbursement for travel, lodging and other out-of-pocket expenses reasonably
incurred by Employee in the exercise of Employee’s duties under this Agreement which are
approved by the Company in advance and are duly substantiated in accordance with the
Company’s policies as to reimbursement. In order to assure compliance with Section 409A of
the Internal Revenue Code of 1986, as amended (the “Code”), such reimbursements shall be
made as soon as practicable, but in no event later than the last day of the calendar year
following the calendar year in which the expense was incurred.

     6. Certain Additional Matters. The Employee agrees that at all times during the term
of this Agreement and for a period of two years following any cessation of employment with the
Company:

     (a) The Employee will not knowingly or intentionally do or say any act or thing which
will or may impair, damage or destroy the goodwill and esteem for the Company held by its
suppliers, employees, patrons, customers and others who may at any time have or have had
business relations with the Company.

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     (b) The Employee will not knowingly or intentionally do any act or thing detrimental to
the Company or its business.

     Nothing herein shall be construed to prevent the Employee from complying with any
requirements of law or legal process or taking such actions as the Company may consent to in
writing.

     7. Termination.

     (a) Death. If the Employee dies during the term of this Agreement and while in
the employ of the Company, this Agreement shall automatically terminate and the Company
shall have no further obligation to the Employee or his estate except that the Company shall
pay the Employee’s estate (i) that portion of the Employee’s Base Salary accrued through the
date on which the Employee’s death occurred, (ii) a pro rata amount of the annual bonus
described in Section 5(i) above, based on the number of days the Employee was employed in
the year in comparison to 365, and (iii) all benefits payable under the governing provisions
of any benefit plan or program of the Company. Such payment of Base Salary and bonus to the
Employee’s estate shall be made in the same manner and at the same times as they would have
been paid to the Employee had he not died.

     (b) Disability. If during the term of this Agreement, the Employee shall be
prevented from performing his duties hereunder by reason of disability, and such disability
shall continue for a period of six months, then the Company may terminate this Agreement at
any time after the expiration of such six-month period. For purposes of this Agreement, the
Employee shall be deemed to have become disabled when the Company, upon the advice of a
qualified physician, shall have determined that the Employee is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a
continuous period of not less than 12 months. In the event of a termination pursuant to
this paragraph (b), the Company shall be relieved of all its obligations under this
Agreement, except that the Company shall pay to the Employee (or his estate in the event of
his subsequent death), (i) the Employee’s Base Salary through the date on which such
termination shall have occurred, reduced during such period by the amount of any benefits
received under any disability policy maintained by the Company, (ii) a pro rata amount of
the annual bonus described in Section 5(i) above, based on the number of days the Employee
was employed in the year in comparison to 365, and (iii) all benefits payable under the
governing provisions of any benefit plan or program of the Company. All such payments to
the Employee or his estate shall be made in the same manner and at the same times as they
would have been paid to the Employee had he not become disabled. No such termination
pursuant to this paragraph (b) will relieve the Employee of his obligations under Sections
6, 8 and 9 hereunder.

     (c) Discharge for Cause. Prior to the end of the term of this Agreement, the
Company may discharge the Employee for Cause and terminate this Agreement. In such

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case this Agreement shall automatically terminate and the Company shall have no further
obligation to the Employee or his estate other than to pay to the Employee (or his estate in
the event of his subsequent death) that portion of the Employee’s salary accrued through the
date of termination.

     For purposes of this Agreement, the Company shall have “Cause” to discharge the
Employee or terminate the Employee’s employment hereunder upon (i) the Employee’s conviction
of any felony or any other crime involving moral turpitude, (ii) the Employee’s repeated
failure or refusal to perform all of his duties, obligations and agreements herein contained
or imposed by law, including his fiduciary duties, to the reasonable satisfaction of the
Company’s Board of Directors, (iii) the Employee’s commission of acts amounting to gross
negligence or willful misconduct to the detriment of the Company, or (iv) the Employee’s
material breach of any provision of this Agreement or uniformly applied provisions of the
Company’s employee handbook or other personnel policies, including without limitation, its
Code of Business Conduct and Ethics. Such determination of “Cause” shall be made by the
Company’s Board of Directors, and in the event of circumstances described in (ii) or (iv),
the Board shall give written notice to the Employee specifying such circumstances and
providing a period of 30 days in which the Employee shall be allowed to cure such
circumstances.

     Any such termination by virtue of this paragraph (c) shall not prejudice any remedy
that the Company may have at law, in equity, or under this Agreement, for breach hereof by
Employee. No such termination pursuant to this paragraph (c) will relieve the Employee of
his obligations under Sections 6, 8 and 9 hereunder.

     (d) Discharge Without Cause. Prior to the end of the term of this Agreement,
the Company may discharge the Employee without Cause (as defined in paragraph (c) above) and
terminate this Agreement. In such case this Agreement shall automatically terminate and the
Company shall have no further obligation to the Employee or his estate, except that the
Company shall continue to pay to the Employee (or his estate in the event of his subsequent
death), (i) the Employee’s Base Salary for a period of 18 months following the date of
discharge, (ii) 50% of the annual target bonus described in Section 5(i) above for the year
of termination, and (iii) all benefits payable under the governing provisions of any benefit
plan or program of the Company. In addition, if following the date of such discharge, the
Employee becomes eligible to elect continuation coverage under the Consolidated Omnibus
Budget Reconciliation Act (“COBRA”) and properly elects such coverage, the Company shall
reimburse the Employee or pay on the Employee’s behalf 100% of applicable medical
continuation premiums for the benefit of the Employee (and his covered dependents as of the
date of his termination, if any) under the Employee’s then-current plan election, with such
coverage to be provided under the closest comparable plan as offered by the Company from
time to time, for so long during the 18-month period following termination as he remains
eligible for and elects COBRA coverage, except as otherwise provided in paragraph (e) below.
All such payments to the Employee or his estate shall be made in the same manner and at the
same times as they would have been paid to the Employee had he not been discharged. No such
termination

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pursuant to this paragraph (d) will relieve the Employee of his obligations under
Sections 6, 8 and 9 hereunder.

     (e) Corporate Change. If following a Corporate Change (as defined in the
Company’s 2006 Long-Term Incentive Plan), the Employee voluntarily terminates his employment
for Good Reason (as defined below) or the Employee is discharged without Cause, in either
case within 24 months following the Corporate Change, then this Agreement shall
automatically terminate and the Company shall have no further obligation to the Employee or
his estate, except that the Company shall pay to the Employee (or his estate in the event of
his subsequent death), (i) a lump sum payment payable following such termination equal to
one and one-half times the Employee’s Base Salary, (ii) 50% of the annual target bonus
described in Section 5(i) above for the year of termination and (iii) all benefits payable
under the governing provisions of any benefit plan or program of the Company. In addition,
if following the date of such resignation or discharge, the Employee becomes eligible to
elect continuation coverage under COBRA and properly elects such coverage, the Company shall
reimburse the Employee or pay on the Employee’s behalf 100% of applicable medical
continuation premiums for the benefit of the Employee (and his covered dependents as of the
date of his termination, if any) under the Employee’s then-current plan election, with such
coverage to be provided under the closest comparable plan as offered by the Company from
time to time, for so long during the 18-month period following the date of resignation or
discharge as he remains eligible for and elects COBRA coverage. No such termination
pursuant to this paragraph (e) will relieve the Employee of his obligations under Sections 6
and 9 hereunder.

          “Good Reason” means any of the following actions if taken without the Employee’s prior
written consent: (A) any material breach by the Company to comply with its obligations under
the terms of the Agreement; (B) any material diminution in the Employee’s responsibilities,
authority or duties, (C) a material diminution in the Employee’s Base Salary; or (D) any
material change in the permanent location at which the Employee performs services for the
Company. The Employee shall give written notice to the Board specifying such actions within
90 days of the existence of such action and providing a period of 30 days in which the
Company shall be allowed to cure such circumstances.

     8. Restrictive Covenants. The Company has provided and shall provide in the future to
the Employee, confidential and proprietary information as that term is defined in Section 9 of this
Agreement (“Confidential Information”). The Employee acknowledges that in the course of his
employment with the Company as a member of the Company’s senior executive and management team, he
shall be given possession of and access to Confidential Information of the Company and its
affiliates, and will develop through such employment business systems, methods of doing business,
and contacts within the death care industry, all of which will help to identify him with the
business and goodwill of the Company. Consequently, it is important that the Company protect its
interests in regard to such matters from unfair competition. In consideration of the Confidential
Information that has been received and that the Company covenants to provide the Employee in the
future, the sufficiency of which is hereby

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acknowledged by the Employee, the Employee agrees to enter into the covenants contained in
this Agreement. The parties therefore agree that for so long as the Employee shall remain employed
by the Company and, if the employment of the Employee ceases for any reason (including voluntary
resignation), then for a period of two (2) years thereafter, the Employee shall not, directly or
indirectly:

     (i) alone or for his own account, or as a officer, director, shareholder, partner,
member, trustee, employee, consultant, advisor, agent or any other capacity of any
corporation, partnership, joint venture, trust, or other business organization or entity,
encourage, support, finance, be engaged in, interested in, or concerned with (x) any of the
companies and entities described on Schedule I hereto, except to the extent that any
activities in connection therewith are confined exclusively outside the continental United
States, or (y) any other business within the death care industry having an office or being
conducted within a radius of fifty (50) miles of any funeral home, cemetery or other death
care business owned or operated by the Company or any of its subsidiaries at the time of
such termination;

     (ii) induce or assist anyone in inducing in any way any employee of the Company or any
of its subsidiaries to resign or sever his or her employment or to breach an employment
contract with the Company or any such subsidiary; or

     (iii) own, manage, advise, encourage, support, finance, operate, join, control, or
participate in the ownership, management, operation, or control of or be connected in any
manner with any business which is or may be in the funeral, mortuary, crematory, cemetery or
burial insurance business or in any business related thereto (x) as part of any of the
companies or entities listed on Schedule I, or (y) otherwise within a radius of fifty (50)
miles of any funeral home, cemetery or other death care business owned or operated by the
Company or any of its subsidiaries at the time of such termination.

     Notwithstanding the foregoing, the above covenants shall not prohibit the passive ownership of
not more than one percent (1%) of the outstanding voting securities of any entity within the death
care industry. The foregoing covenants shall not be held invalid or unenforceable because of the
scope of the territory or actions subject hereto or restricted hereby, or the period of time within
which such covenants respectively are operative, but the maximum territory, the action subject to
such covenants and the period of time they are enforceable are subject to any determination by a
final judgment of any court which has jurisdiction over the parties and subject matter.

     9. Confidential Information; Copyrightable Material. The Employee acknowledges that in
the course of his employment by the Company he shall receive and access certain trade secrets,
management methods, financial and accounting data (including, but not limited to, reports, studies,
analyses, spreadsheets and other materials and information), operating techniques, prospective
acquisitions, employee lists, training manuals and procedures, personnel evaluation procedures, and
other confidential information and knowledge concerning the business of the Company and its
affiliates (hereinafter collectively referred to as “Confidential

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Information”) which the Company desires to protect. The Employee understands that the
Confidential Information is confidential and he agrees not to reveal the Confidential Information
to anyone outside the Company so long as the confidential or secret nature of the Confidential
Information shall continue, except as required by law or legal process. The Employee further agrees
that he will at no time use the Confidential Information in competing with the Company. Upon
termination of this Agreement, the Employee shall surrender to the Company all papers, documents,
writings and other property produced by him or coming into his possession by or through his
employment or relating to the Confidential Information and the Employee agrees that all such
materials will at all times remain the property of the Company. The Employee acknowledges that all
materials and other copyrightable works and subject matter (regardless of whether or not
constituting “Confidential Information”) produced by the Employee within the scope of his
employment (regardless of whether or not denoted as copyrighted material) shall be deemed “works
made for hire” and shall be owned by and proprietary to the Company and may not be used or
reproduced in whole or in part without the Company’s prior written consent.

     10. Remedies. The parties recognize that the services to be rendered under this
Agreement by the Employee are special, unique, and of extraordinary character, and that in the
event of the breach by the Employee of the covenants contained in Section 8 or Section 9 hereof,
the Company may suffer irreparable harm as a result. The parties therefore agree that, in the
event of any breach or threatened breach of any of such covenants, the Company shall be entitled to
specific performance or injunctive relief, or both, and may, in addition to and not in lieu of any
claim or proceeding for damages, institute and prosecute proceedings in any court of competent
jurisdiction to enforce through injunctive relief such covenants. In addition, the Company may, if
it so elects, suspend (if applicable) any payments due under this Agreement pending any such breach
and offset against any future payments the amount of the Company’s damages arising from any such
breach. The Employee agrees to waive and hereby waives any requirement for the Company to secure
any bond in connection with the obtaining of such injunction or other equitable relief.

     11. Notices. All notices, requests, consents and other communications under this
Agreement shall be in writing and shall be deemed to have been delivered on the date personally
delivered or three business days after the date mailed, postage prepaid, by certified mail, return
receipt requested, or when sent by electronic means or facsimile and receipt is confirmed, if
addressed to the respective parties as follows:

	 	 	 
	     If to the Employee:          

	 	Terry E. Sanford
	 

	 	715 Longview Drive
	 

	 	Sugar Land, TX 77478
	 
	 	 
	     If to the Company:

	 	Carriage Services, Inc.
	 

	 	3040 Post Oak Blvd, Suite 300
	 

	 	Houston, Texas 77056
	 

	 	Attn: Chief Executive Officer

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Either party hereto may designate a different address by providing written notice of such new
address to the other party hereto.

     12. Severability. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law but if any provision
of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such provision or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

     13. Assignment. This Agreement may not be assigned by the Employee. Neither the
Employee nor his estate shall have any right to commute, encumber or dispose of any right to
receive payments hereunder, it being agreed that such payments and the right thereto are
nonassignable and nontransferable.

     14. Binding Effect. Subject to the provisions of Section 13 of this Agreement, this
Agreement shall be binding upon and inure to the benefit of the parties hereto, the Employee’s
heirs and personal representatives, and the successors and assigns of the Company.

     15. Captions. The section and paragraph headings in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

     16. Complete Agreement. This Agreement represents the entire agreement between the
parties concerning the subject hereof and supersedes all prior agreements and arrangements between
the parties concerning the subject thereof.

     17. Governing Law; Venue. A substantial portion of the Employee’s duties under this
Agreement shall be performed at the Company’s corporate headquarters in Houston, Texas, and this
Agreement has been substantially negotiated and is being executed and delivered in the State of
Texas. This Agreement shall be construed and enforced in accordance with and governed by the laws
of the State of Texas. Any suit, claim or proceeding arising under or in connection with this
Agreement or the employment relationship evidenced hereby must be brought, if at all, in a state
district court in Harris County, Texas or federal district court in the Southern District of Texas,
Houston Division. Each party submits to the jurisdiction of such courts and agrees not to raise
any objection to such jurisdiction.

     18. Survival. The provisions of Sections 6, 8 and 9 shall survive any termination of
this Agreement or the employment relationship of the Company and Employee; provided, however, if
such termination is the result of Corporate Change as provided in Section 7(e) hereof, Employee
shall not thereafter be bound by the provisions of Section 8 hereof.

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

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     20. Time of Payments. All amounts payable under Sections 7(d) and (e) of this
Agreement shall be paid within 10 days after the Employee’s execution without revocation of a
release in a form satisfactory to the Company and within the time period prescribed by the Company
(which may not be less than 21 days after the date of termination of employment). If the Employee
is a “specified employee,” as such term is defined in Section 409A of the Code and related
regulations and Treasury pronouncements (“Section 409A”) and determined as described below in this
Section 20, any payments payable as a result of the Employee’s termination (other than death) shall
not be payable before the earliest of (i) the date that is six months after the Employee’s
termination, (ii) the date of the Employee’s death, or (iii) the date that otherwise complies with
the requirements of Section 409A. This Section 20 shall be applied by accumulating all payments
that otherwise would have been paid within six months of the Employee’s termination and paying such
accumulated amounts at the earliest date which complies with the requirements of Section 409A. The
Employee shall be a “specified employee” for the twelve-month period beginning on April 1 of a year
if the Employee is a “key employee” as defined in Section 416(i) of the Code (without regard to
Section 416(i)(5)) as of December 31 of the preceding year or using such dates as designated by the
Company in accordance with Section 409A and in a manner that is consistent with respect to all of
the Company’s nonqualified deferred compensation plans. For purposes of determining the identity
of specified employees, the Company may establish procedures as it deems appropriate in accordance
with Section 409A.

     21. Income, Excise or Other Tax Liability. The Company may withhold from any benefits
and payments made pursuant to this Agreement all federal, state, city and other taxes as may be
required pursuant to any law or governmental regulation or ruling and all other normal employee
deductions made with respect to the Company’s employees generally. Notwithstanding anything in this
Agreement to the contrary, in the event it shall be determined that any payment or distribution by
the Company to the Employee or for his benefit, whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise (a “Payment”), would be subject
to the excise tax imposed by Section 4999 of the Code, or any interest or penalties with respect to
such excise tax (such excise tax, together with any such interest or penalties, are hereinafter
collectively referred to as the “Excise Tax”), the Company shall pay to the Employee an additional
payment (a “Gross-up Payment” ) in an amount such that after payment by the Employee of all taxes
(including any interest or penalties imposed with respect to such taxes), including any Excise Tax
imposed on any Gross-up Payment, the Employee retains an amount of the Gross-up Payment equal to
the Excise Tax imposed upon the Payments. All determinations required to be made under this
Section 21 shall be made by the Company’s accounting firm (the “Accounting Firm”). The Accounting
Firm shall provide detailed supporting calculations both to the Company and the Employee. All fees
and expenses of the Accounting Firm shall be borne solely by the Company. Absent manifest error,
any determination by the Accounting Firm shall be binding upon the Company and the Employee.

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year
first above written.

	 	 	 	 	 
	 	CARRIAGE SERVICES, INC.

 	 
	 	By:  	/s/ MELVIN C. PAYNE
 	 
	 	 	MELVIN C. PAYNE, Chief Executive Officer 	 
	 	 	 	 
	 
	 	 	 
	 	     /s/ Terry E. Sanford
 	 
	 	Terry E. Sanford 	 
	 	 	 

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SCHEDULE I

TO

EMPLOYMENT AGREEMENT

	1.	 	The following entities, together with all Affiliates thereof:

Service Corporation International

Alderwoods Group, Inc.

Stewart Enterprises, Inc.

Keystone North America, Inc.

Meridian Mortuary Group, Inc.

StoneMor Partners LP

Saber Management LLC

Thomas Pierce & Co.

Legacy Funeral Holdings, LLC

Northstar Memorial Group, LLC

	 	 	For purposes of the foregoing, an “Affiliate” of an entity is a person that directly or
indirectly controls, is under the control of or is under common control with such entity.
	 
	2.	 	Any new entity which may hereafter be established which acquires any combination of ten or
more funeral homes and/or cemeteries from any of the entities described in 1 above.
	 
	3.	 	Any funeral home, cemetery or other death care enterprise which is managed by any entity
described in 1 or 2 above.

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Exhibit 10.1

THIRD AMENDMENT TO CREDIT AGREEMENT

     THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made and entered into
as of August 24, 2007 (the “Effective Date”) among SUPERIOR OFFSHORE INTERNATIONAL, INC., a
Delaware corporation as successor by merger to Superior Offshore International, L.L.C.
(“Borrower”), JPMORGAN CHASE BANK, N.A., for itself, as Lender and as Administrative Agent
for the Lenders (in such capacity, the “Agent”).

     WHEREAS, Borrower, Agent and Lenders are parties to that certain Credit Agreement, dated as of
February 27, 2007, as amended by that certain First Amendment to Credit Agreement, dated June 18,
2007 (“First Amendment”), as further amended by that certain Second Amendment to Credit
Agreement dated as of August 14, 2007 (the “Second Amendment”) (as further amended,
restated or modified from time to time, the “Credit Agreement”);

     WHEREAS, Borrower, Agent and Lenders desire to amend the Credit Agreement to allow and provide
for such matters contained herein, all as hereinafter set forth.

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

ARTICLE I

Definitions

     Section 1.01 Definitions. Capitalized terms used in this Amendment, to the extent not
otherwise defined herein, shall have the same meaning as in the Credit Agreement, as amended
hereby.

ARTICLE II

Amendments

     Section 2.01 Amendment to the definition of “Applicable Rate”. Effective as of the
Effective Date, the definition of “Applicable Rate” is hereby amended by replacing “ABR Loan” and
“Eurodollar Revolving Loan” within such definition with “ABR Loan”, “Eurodollar Revolving Loan” or
“Eurodollar Foreign Loan” (as applicable).

     Section 2.02 Amendment to Article I. Effective as of the Effective Date, the
following definitions found in Article I of the Credit Agreement are each hereby amended and
restated in their entireties to read as follows:

          “‘Applicable Percentage’ means, with respect to any Lender, (a) with
respect to Revolving Loans, Foreign Loans, LC Exposure, Swingline Loans or
Overadvances, a percentage equal to a fraction the numerator of which is such
Lender’s Revolving Commitment and the denominator of which is the aggregate
Revolving Commitment of all Revolving Lenders (if the Revolving Commitments have
terminated or expired, the Applicable Percentages shall be determined based upon
such Lender’s share of the aggregate Revolving

 

 

Exposures at that time) and (b) with respect to Protective Advances or with
respect to the Aggregate Credit Exposure, a percentage based upon its share
of the Aggregate Credit Exposure and the unused Commitments.”

          “‘Applicable Rate’ means, for any day, with respect to any ABR Loan,
Eurodollar Revolving Loan, or Eurodollar Foreign Loan, or with respect to the
commitment fees payable hereunder, as the case may be, the applicable rate per
annum set forth below under the caption “Revolving Loan Eurodollar Spread”,
“Foreign Loan Eurodollar Spread” or “Commitment Fee Rate”, as the case may be,
based upon the Borrower’s Fixed Charge Coverage Ratio, Average 30-Day Domestic
Availability or Average 30-Day Foreign Availability, as of the most recent
determination date, provided that until the delivery to the Administrative Agent,
pursuant to Section 5.01, of the Borrower’s consolidated financial information for
the Borrower’s first fiscal quarter ending after the Effective Date, the
“Applicable Rate” shall be the applicable rate per annum set forth below in
Category 2:

	 	 	 	 	 
	Average 30-Day Domestic	 	 	 	 
	Availability or Fixed	 	Revolving Loan	 	Commitment
	Charge Coverage Ratio	 	Eurodollar Spread	 	Fee Rate
	 
	 	 	 	 
	Category 1

	 	1.75%	 	0.25%
	Fixed Charge Coverage
Ratio

3 2.0 to 1.0 or Average 

30-Day Domestic
Availability

3 $15,000,000
	 	 	 	 
	 
	 	 	 	 
	Category 2

	 	2.00%	 	0.25%
	Fixed Charge Coverage
Ratio

< 2.0 to 1.0 but
3 1.5 to 1.0 or Average 

30-Day Domestic
Availability

< $15,000,000 but
3 $10,000,000
	 	 	 	 
	 
	 	 	 	 
	Category 3

	 	2.25	 	0.25%
	Fixed Charge Coverage
Ratio

< 1.5 to 1.0 or Average 

30-Day Domestic
Availability

< $10,000,000
	 	 	 	 

2

 

	 	 	 	 	 
	Average 30-Day Domestic	 	 	 	 
	Availability or Fixed	 	Foreign Loan	 	Commitment
	Charge Coverage Ratio	 	Eurodollar Spread	 	Fee Rate
	 
	 	 	 	 
	Category 1

	 	1.50%	 	0.25%
	Fixed Charge Coverage Ratio

3 2.0 to 1.0 or Average

30-Day Foreign Availability

3 $7,500,000
	 	 	 	 
	 
	 	 	 	 
	Category 2

	 	1.75%	 	0.25%
	Fixed Charge Coverage Ratio

< 2.0 to 1.0 but

3 1.5 to 1.0 or Average

30-Day Foreign Availability

< $7,500,000 but 3 $5,000,000
	 	 	 	 
	 
	 	 	 	 
	Category 3

	 	2.00%	 	0.25%
	Fixed Charge Coverage Ratio

< 1.5 to 1.0 or Average

30-Day Foreign Availability

< $5,000,000
	 	 	 	 

     For purposes of the foregoing, (a) the Applicable Rate shall be determined as
of the end of each fiscal quarter of the Borrower based upon the Borrower’s annual
or quarterly consolidated financial statements delivered pursuant to Section 5.01
and (b) each change in the Applicable Rate resulting from a change in the Average
30-Day Domestic Availability, Average 30-Day Foreign Availability or Fixed Charge
Coverage Ratio shall be effective during the period commencing on and including
the date of delivery to the Administrative Agent of such consolidated financial
statements indicating such change and ending on the date immediately preceding the
effective date of the next such change, provided that if such consolidated
financial statements have not been delivered to Administrative Agent, the Average
30-Day Domestic Availability, Average 30-Day Foreign Availability and Fixed Charge
Coverage Ratio shall be deemed to be in Category 3. If, as a result of any
restatement of or other adjustment to the financial statements of the Borrower or
for any other reason, the Administrative Agent determines that (a) the Fixed
Charge Coverage Ratio, Average 30-Day Domestic Availability or Average 30-Day

3

 

Foreign Availability as calculated by the Borrower as of any applicable date was
inaccurate and (b) a proper calculation of the Fixed Charge Coverage Ratio,
Average 30-Day Domestic Availability or Average 30-Day Foreign Availability would
have resulted in different pricing for any period, then (i) if the proper
calculation of the Fixed Charge Coverage Ratio, Average 30-Day Domestic
Availability or Average 30-Day Foreign Availability would have resulted in higher
pricing for such period, the Borrower shall automatically and retroactively be
obligated to pay to the Administrative Agent, for its benefit and the benefit of
the Lenders, promptly on demand by the Administrative Agent, an amount equal to
the excess of the amount of interest and fees that should have been paid for such
period over the amount of interest and fees actually paid for such period; and
(ii) if the proper calculation of the Fixed Charge Coverage Ratio, Average 30-Day
Domestic Availability or Average 30-Day Foreign Availability would have resulted
in lower pricing for such period, an amount equal to the interest and fees that
were paid for such period over the amount of interest and fees that should have
been paid for such period shall be applied as a credit to the next payment(s) of
interest and/or fees payable hereunder; provided that if, as a result of any
restatement or other event a proper calculation of the Fixed Charge Coverage
Ratio, Average 30-Day Domestic Availability or Average 30-Day Foreign Availability
would have resulted in higher pricing for one or more periods and lower pricing
for one or more other periods (due to the shifting of income or expenses form one
period to another period or any similar reason), then the amount payable by, or
credited to, the Borrower pursuant to clause (i) or (ii) above, as applicable,
shall be based upon the positive difference, if any, between the amount of
interest and fees that should have been paid for all applicable periods and the
amount of interest and fees paid for all such periods. The Applicable Margin for
ABR Loans shall be zero percent (0%).”

          “‘Availability Period’ means (a) with respect to Domestic Loans, the
period from and including the Effective Date to, but excluding, the earlier of the
Maturity Date and the termination of the Commitments pursuant to the terms hereof,
and (b) with respect to the Foreign Loans, the period from August 24, 2007 to, but
excluding, the Foreign Loan End Date.”

          “‘Borrowing’ means (a) Revolving Loans of the same Type, made,
converted or continued on the same date and, in the case of Eurodollar Loans, as
to which a single Interest Period is in effect, (b) Foreign Loans of the same
Type, made, converted or continued on the same date and, in the case of Eurodollar
Loans, as to which a single Interest Period is in effect (c) a Swingline Loan, (d)
a Protective Advance and (e) an Overadvance.”

          “‘Borrowing Base’ means, at any time, the Borrowing Base for Eligible
Receivables and the Borrowing Base for Foreign Eligible Receivables.”

          “‘Class’ when used in reference to any Loan or Borrowing, refers to
whether such Loan, or the Loans comprising such Borrowing, are

4

 

Revolving Loans, Foreign Loans, Swingline Loans or Protective Advances or Overadvances.”

          “‘Revolving Commitment’ means, with respect to each Lender, the
commitment, if any, of such Lender to make Revolving Loans, Foreign Loans, and to
acquire participations in Letters of Credit, Overadvances and Swingline Loans
hereunder, expressed as an amount representing the maximum possible aggregate
amount of such Lender’s Revolving Exposure hereunder, as such commitment may be
reduced or increased from time to time pursuant to assignments by or to such
Lender pursuant to Section 9.04. The initial amount of each Lender’s Revolving
Commitment is set forth on the Commitment Schedule, or in the Assignment and
Assumption pursuant to which such Lender shall have assumed its Revolving
Commitment, as applicable. The initial aggregate amount of Lenders’ Revolving
Commitment is $55,000,000.”

          “‘Revolving Exposure’ means, collectively, the Foreign Revolving
Exposure and the Domestic Revolving Exposure.”

          “‘Revolving Loan’ means any Loan, other than a Foreign Loan, made
pursuant to Section 2.01.”

          “‘Revolving Loan Sublimit’ means, as of any date of determination,
the lesser of (a) (i) $30,000,000 minus (ii) the Foreign Revolving
Exposure and (b) the sum of (i) the lesser of (A) the Revolving Commitment for
Loans (excluding Foreign Loans) and the (B) Borrowing Base for Eligible
Receivables (less the Foreign Revolving Exposure) plus (ii) cash held in
an account with Administrative Agent which account is subject to an account
control agreement in favor of Administrative Agent minus (iii) the
Domestic Revolving Exposure of all Revolving Lenders.”

     Section 2.03 Amendment to Article I. Effective as of the Effective Date, Article I of
the Credit Agreement is hereby amended to add the following definitions in the correct alphabetical
order:

          “‘Average 30-Day Domestic Availability’ means the amount obtained by
adding the Revolving Loan Sublimit at the end of each day for each of the prior
thirty (30) days and dividing the sum by thirty (30).”

          “‘Average 30-Day Foreign Availability’ means the amount obtained by
adding the Foreign Loan Limit at the end of each day for each of the prior thirty
(30) days and dividing the sum by thirty (30).”

          “‘Borrowing Base for Eligible Receivables’ means, at any time (a) 85%
of the Borrower’s Eligible Accounts at such time minus (b) Reserves;
provided, however, that the Borrowing Base for Eligible
Receivables shall not include any Accounts which at such time constitute Foreign Eligible Accounts.
The Administrative Agent may, in its Permitted Discretion, reduce the advance

5

 

rates set forth above, adjust Reserves or reduce one or more of the other elements
used in computing the Borrowing Base for Eligible Receivables. The parties
understand that the exclusionary criteria in the definition of Eligible Accounts,
any Reserves that may be imposed as provided herein, any reduction of the advance
rates set forth above, and any deductions or other adjustments provided for herein
to the face amount Eligible Accounts, have the effect of reducing the Borrowing
Base for Eligible Receivables, and, accordingly, whether or not any provisions
hereof so state, all of the foregoing shall be determined without duplication so
as not to result in multiple reductions in the Borrowing Base for Eligible
Receivables for the same facts or circumstances.”

          “‘Borrowing Base for Foreign Eligible Receivables’ means, at any
time, (a) 90% of the Borrower’s Foreign Eligible Accounts minus (b)
Reserves; provided, however, that the Borrowing Base for Foreign
Eligible Receivables shall not include any Accounts which at such time constitute
Eligible Accounts. The Administrative Agent may, in its Permitted Discretion,
reduce the advance rates set forth above, adjust Reserves or reduce one or more of
the other elements used in computing the Borrowing Base for Foreign Eligible
Receivables. The parties understand that the exclusionary criteria in the
definition of Foreign Eligible Accounts, any Reserves that may be imposed as
provided herein, any reduction of the advance rates set forth above, and any
deductions or other adjustments provided for herein to the face amount Foreign
Eligible Accounts, have the effect of reducing the Borrowing Base for Foreign
Eligible Receivables, and, accordingly, whether or not any provisions hereof so
state, all of the foregoing shall be determined without duplication so as not to
result in multiple reductions in the Borrowing Base for Foreign Eligible
Receivables for the same facts or circumstances.”

          “‘Domestic Revolving Exposure’ means, with respect to any Lender at
any time, the sum of the outstanding principal amount of such Lender’s Revolving
Loans (excluding Foreign Loans) and its LC Exposure and an amount equal to its
Applicable Percentage of the aggregate principal amount of Swingline Loans at such
time, plus an amount equal to its Applicable Percentage of the aggregate principal
amount of Overadvances outstanding at such time.”

          “‘ExIm’ means the Export-Import Bank of the United States.”

          “‘ExIm Documents’ means collectively (a) that certain Master
Guarantee Agreement No. TX-MGA-05-010 between Agent and ExIm, dated November 1,
2005, (b) that certain Borrower Agreement between Borrower, Agent and ExIm, dated
August 22, 2007, (c) that certain Fast Track Loan Authorization Agreement between
Borrower and Agent, dated August 22, 2007, and all other agreements and
instruments executed in connection therewith, (d) that certain Supplement to the Borrower Agreement dated August 22, 2007 among
Borrower, Agent and ExIm, (e) that certain Delegated Authority Letter Agreement
effective as of December 31, 2005 between ExIm and Agent and

6

 

(f) that certain Fast Track Lender Agreement accepted as of December 19, 2005 between ExIm and Agent, in
each case, as modified by the terms of the ExIm Waiver Letter dated as of August
15, 2007, between ExIm and the Administrative Agent.”

          “‘Foreign Eligible Accounts’ means, at any time, the Accounts of the
Borrower that are (i) “Eligible Export-Related Accounts Receivable” under the ExIm
Documents, (ii) owed by an Account Debtor doing business in a Permitted Foreign
Country and (iii) which the Administrative Agent determines in its Permitted
Discretion, pursuant to the exclusionary criteria set forth below, are eligible as
the basis for the extension of Foreign Loans hereunder. Without limiting the
Administrative Agent’s discretion provided herein, Foreign Eligible Accounts shall
not include any Account:

     (a) which is an Eligible Account;

     (b) which is not subject to a first priority perfected security
interest in favor of the Administrative Agent;

     (c) which is subject to any Lien other than (i) a Lien in favor
of the Administrative Agent and (ii) a Permitted Encumbrance which
does not have priority over the Lien in favor of the Administrative
Agent;

     (d) which is unpaid more than 90 days after the date of the
original invoice therefor or more than 60 days after the original
due date, or which has been written off the books of the Borrower or
otherwise designated as uncollectible;

     (e) with respect to which any covenant, representation, or
warranty contained in this Agreement or in the Security Agreement
has been breached or is not true;

     (f) which (i) does not arise from the sale of goods or
performance of services in the ordinary course of business, (ii) is
not evidenced by an invoice or by other documentation satisfactory
to the Administrative Agent which has been sent to the Account
Debtor, (iii) represents a progress billing, (iv) is contingent upon
the Borrower’s completion of any further performance, (v) represents
a sale on a bill-and-hold, guaranteed sale, sale-and-return, sale on
approval, consignment, cash-on-delivery or any other repurchase or
return basis or (vi) relates to payments of interest;

     (g) for which the goods giving rise to such Account have not
been shipped to the Account Debtor or for which the services giving
rise to such Account have not been performed by

7

 

the Borrower or if such Account was invoiced more than once (but only with respect to
any duplicate invoice(s));

     (h) with respect to which any check or other instrument of
payment has been returned uncollected for any reason;

     (i) which is owed by an Account Debtor which has (i) applied
for, suffered, or consented to the appointment of any receiver,
custodian, trustee, or liquidator of its assets, (ii) has had
possession of all or a material part of its property taken by any
receiver, custodian, trustee or liquidator, (iii) filed, or had
filed against it, any request or petition for liquidation,
reorganization, arrangement, adjustment of debts, adjudication as
bankrupt, winding-up, or voluntary or involuntary case under any
state or federal bankruptcy laws (other than post-petition accounts
payable of an Account Debtor that is a debtor-in-possession under
the Bankruptcy Code and reasonably acceptable to the Administrative
Agent), (iv) has admitted in writing its inability, or is generally
unable to, pay its debts as they become due, (v) become insolvent,
or (vi) ceased operation of its business;

     (j) which is owed by an Account Debtor which has sold all or
substantially all of its assets;

     (k) which is owed by an Account Debtor which (i) does not
maintain its chief executive office in a Permitted Foreign Country
and (ii) is not organized under applicable law of any jurisdiction
in any Permitted Foreign Country;

     (l) which is owed in any currency other than U.S. dollars;

     (m) which is owed by (i) the government (or any department,
agency, public corporation, or instrumentality thereof) of any
country other than the U.S. unless such Account is backed by a
Letter of Credit acceptable to the Administrative Agent which is in
the possession of the Administrative Agent, or (ii) the government
of the U.S., or any department, agency, public corporation, or
instrumentality thereof, unless the Federal Assignment of Claims Act
of 1940, as amended (31 U.S.C. § 3727 et seq. and 41
U.S.C. § 15 et seq.), and any other steps necessary
to perfect the Lien of the Administrative Agent in such Account have
been complied with to the Administrative Agent’s satisfaction;

     (n) which is owed by any Affiliate, employee, officer,
director, agent or, prior to the IPO, stockholder of any Loan
Party;

8

 

     (o) which is owed by an Account Debtor or any Affiliate of such
Account Debtor to which any Loan Party is indebted (unless the
Account Debtor has entered into an agreement acceptable to
Administrative Agent to waive set-off rights), but only to the
extent of such indebtedness or is subject to any security, deposit,
progress payment, retainage or other similar advance made by or for
the benefit of an Account Debtor, in each case to the extent
thereof;

     (p) which is subject to any counterclaim, deduction, defense,
setoff (unless the Account Debtor has entered into an agreement
acceptable to Administrative Agent to waive set-off rights) or
dispute but only to the extent of any such counterclaim, deduction,
defense, setoff or dispute;

     (q) which is evidenced by any promissory note, chattel paper,
or instrument;

     (r) with respect to which the Borrower has made any agreement
with the Account Debtor for any reduction thereof, other than
discounts and adjustments given in the ordinary course of business
to the extent of such reduction, or any Account which was partially
paid and the Borrower created a new receivable for the unpaid
portion of such Account (to the extent of any duplication);

     (s) which does not comply in all material respects with the
requirements of all applicable laws and regulations, whether
Federal, state or local, including without limitation the Federal
Consumer Credit Protection Act, the Federal Truth in Lending Act and
Regulation Z of the Board;

     (t) which is for goods that have been sold under a purchase
order or pursuant to the terms of a contract or other agreement or
understanding (written or oral) that indicates or purports that any
Person other than the Borrower has or has had an ownership interest
in such goods, or which indicates any party other than the Borrower
as payee or remittance party;

     (u) which was created on cash on delivery terms; or

     (v) which the Administrative Agent determines will not be paid
by reason of the Account Debtor’s inability to pay or which
the Administrative Agent otherwise determines is unacceptable
for any reason whatsoever.

9

 

          In the event that an Account which was previously a Foreign Eligible Account
ceases to be a Foreign Eligible Account hereunder, the Borrower shall exclude the
same in calculating the Borrowing Base for Foreign Eligible Receivables and notify
the Administrative Agent thereof on and at the time of submission to the
Administrative Agent of the next Borrowing Base Certificate. In determining the
amount of a Foreign Eligible Account, the face amount of an Account may, in the
Administrative Agent’s Permitted Discretion, be reduced by, without duplication, to
the extent not reflected in such face amount, (i) the amount of all accrued and
actual discounts, claims, credits or credits pending, promotional program
allowances, price adjustments, finance charges or other allowances (including any
amount that the Borrower may be obligated to rebate to an Account Debtor pursuant to
the terms of any agreement or understanding (written or oral)) and (ii) the
aggregate amount of all cash received in respect of such Account but not yet applied
by the Borrower to reduce the amount of such Account.”

          “‘Foreign Loan’ means the Loans made pursuant to Section 2.01(a)(II),
and the ExIm Documents, in a maximum principal amount at any time outstanding of up
to the Foreign Loan Limit.”

          “‘Foreign Loan End Date” means February 24, 2008 or any earlier date in
which the Commitments with respect to the Foreign Loans are reduced to zero or
terminated pursuant to the terms hereof.

          “‘Foreign Loan Limit’ means, at any date of determination, the lesser
of (a) $15,000,000 and (b) the sum of lesser of (A) the Revolving Commitment for
Foreign Loans and (B) the Borrowing Base for Foreign Eligible Receivables
minus (y) the Foreign Revolving Exposure of all Revolving Lenders.”

          “‘Foreign Revolving Exposure’ means, with respect to any Lender at any
time, the outstanding principal amount of such Lender’s Foreign Loans.”

          “‘Permitted Foreign Country’ means a country that is on the Country
Limitation Schedule (as defined in the ExIm Documents) as Agent may permit in
writing from time to time, in its sole and absolute discretion (including, without
limitation, as of August 24, 2007, The Republic of Trinidad and Tobago).”

     Section 2.04 Amendment to Section 2.01. Effective as of the Effective Date,
Section 2.01(a) of the Credit Agreement is hereby amended and restated as follows:

     “Subject to the terms and conditions set forth herein, each Lender agrees to
make (I) Revolving Loans to the Borrower from time to time during the Availability
Period in an aggregate principal amount that will not result in (i) such
Lender’s Domestic Revolving Exposure exceeding (A) (1) for the period from
August 24, 2007 through and including the Foreign Loan End Date, such

10

 

Lender’s Revolving Commitment less such Lender’s Foreign Revolving Exposure and (2) for all
periods thereafter, such Lender’s Revolving Commitment or (B) the Applicable
Percentage of such Lender’s Revolving Loan Sublimit or (ii) the total Domestic
Revolving Exposures exceeding the lesser of (x) the sum of the total Revolving
Commitments less (until the Foreign Loan End Date) the total Foreign Revolving
Exposures or (y) the Borrowing Base for Eligible Receivables less (until the Foreign
Loan End Date) the total Foreign Revolving Exposures, subject to the Administrative
Agent’s authority, in its sole discretion, to make Protective Advances and
Overadvances pursuant to the terms of Section 2.04 and 2.05 and (II) Foreign Loans
to the Borrower from time to time during the Availability Period in an aggregate
principal amount that will not result in (i) such Lender’s Revolving Exposure
exceeding (A) fifty percent (50%) of such Lender’s Revolving Commitment or (B) the
Applicable Percentage of such Lender’s Foreign Loan Limit or (ii) the total Foreign
Revolving Exposure exceeding the lesser of (x) the sum of the total Revolving
Commitments or (y) the Borrowing Base for Foreign Eligible Receivables. Within the
foregoing limits and subject to the terms and conditions set forth herein, the
Borrower may borrow, prepay and reborrow both Revolving Loans and Foreign Loans.

     Section 2.05 Amendment to Section 2.03. Effective as of the Effective Date,
Section 2.03 of the Credit Agreement is hereby amended and restated as follows:

     “(A) To request a Revolving Borrowing, the Borrower shall notify the
Administrative Agent of such request either in writing (delivered by hand or
facsimile) in a form approved by the Administrative Agent and signed by the
Borrower or by telephone (a) in the case of a Eurodollar Borrowing, not later
than 10:00 a.m., Chicago time, three Business Days before the date of the
proposed Borrowing or (b) in the case of an ABR Borrowing, not later than
noon, Chicago time, on the date of the proposed Borrowing; provided
that any such notice of an ABR Revolving Borrowing to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.06(e) may be
given not later than 9:00 a.m., Chicago time, on the date of the proposed
Borrowing. Each such borrowing notice must be executed by any of the chief
financial officer, the treasurer, the Controller, the Vice President —
Corporate Development or the Chief Administrator — Louisiana Operations of
the Borrower. Each such telephonic Borrowing Request shall be irrevocable
and shall be confirmed promptly by hand delivery or facsimile to the
Administrative Agent of a written Borrowing Request in a form approved by the
Administrative Agent and signed by the Borrower.

     (B) To request a Foreign Loan Borrowing, the Borrower shall comply with
the notices and procedures as set forth above in Section 2.03(A).
Notwithstanding anything to the contrary herein, the parties
hereto hereby agree that to the extent there are Foreign Eligible
Receivables as reported in the last delivered Borrowing Base Certificate,

11

 

     (i) the Borrower’s delivery of a Borrowing Request (regardless of
whether specifically requesting a Foreign Loan Borrowing or Revolving
Borrowing) shall be deemed to be a timely request for a Foreign Loan
Borrowing in an amount equal to the least of:

     (X) the maximum available principal amount of Foreign Loans up
to an amount equal to the Borrowing Base for Foreign Eligible
Receivables (with the balance of the requested Borrowing to be
comprised of Revolving Loans to the extent the Borrower has
Availability) and

     (Y) the requested amount of the applicable Borrowing; and

     (ii) each day, to the extent there are outstanding Revolving Loans
(after giving effect to all applications of funds pursuant to Section
2.10(b)), the Borrower shall be deemed to have made a timely request for a
Foreign Loan Borrowing in an amount equal to the lesser of (X) the Borrowing
Base for Foreign Eligible Receivables and (Y) the outstanding principal
amount of such Revolving Loans, with the proceeds of such Foreign Loan
Borrowing applied to repay such Revolving Loans.

     (C) Each such telephonic and written Borrowing Request for either a
Revolving Borrowing or a Foreign Loan Borrowing shall also specify the
following information in compliance with Section 2.01:

     (i) the aggregate amount of the requested Borrowing and a
breakdown of the separate wires comprising such Borrowing;

     (ii) the date of such Borrowing, which shall be a Business Day;

     (iii) whether such Borrowing is to be an ABR Borrowing or a
Eurodollar Borrowing; and

     (iv) in the case of a Eurodollar Borrowing, the initial Interest
Period to be applicable thereto, which shall be a period contemplated
by the definition of the term “Interest Period.

     (D) If no election as to the Type of Revolving Borrowing or Foreign
Loan Borrowing is specified, then the requested Borrowing shall be an ABR
Borrowing. If no Interest Period is specified with respect to any requested
Eurodollar Revolving Borrowing or Eurodollar Foreign Loan Borrowing, then
the Borrower shall be deemed to have selected an Interest Period of one
month’s duration. Promptly following receipt of a Borrowing Request in accordance
with this Section, the Administrative

12

 

Agent shall advise each Lender of the details thereof and of the
amount of such Lender’s Loan to be made as part of the requested Borrowing.”

     Section 2.06 Amendment to Section 2.07. Effective as of the Effective Date,
Section 2.07 of the Credit Agreement is hereby amended by replacing “ABR Revolving Loans”
with “ABR Revolving Loans or ABR Foreign Loans (as applicable)”.

     Section 2.07 Amendment to Section 2.08. Effective as of the Effective Date,
Section 2.08 of the Credit Agreement is hereby amended by replacing “Revolving Borrowing”
and “Eurodollar Revolving Borrowing” with “Revolving Borrowing and Foreign Loan Borrowing” and
“Eurodollar Revolving Borrowing and Eurodollar Foreign Borrowing (as applicable)”.

     Section 2.08 Amendment to Section 2.10. Effective as of the Effective Date,
Section 2.10(a)(i) of the Credit Agreement is hereby amended and restated in its entirety
as follows:

“(a) (i) to the Administrative Agent for the account of each Lender the then unpaid
principal amount of each (A) Revolving Loan on the Maturity Date and (B) each
Foreign Loan on Foreign Loan End Date.”

     Section 2.09 Amendment to Section 2.10. Effective as of the Effective Date,
Section 2.10(b) of the Credit Agreement is hereby amended and restated in its entirety as
follows:

“(b) (i) At all times that full cash dominion is in effect pursuant to
Section 7.3 of the Security Agreement, on each Business Day, the
Administrative Agent shall apply all immediately available funds credited
to the Collection Account that are proceeds of the Eligible Accounts on
such Business Day first to prepay any Protective Advances and
Overadvances that may be outstanding, pro rata, and second to
prepay the Revolving Loans (including Swing Line Loans), and to cash
collateralize outstanding LC Exposure and (ii) on each Business Day, the
Administrative Agent shall apply all immediately available funds credited
to the Collection Account that are proceeds of the Foreign Eligible
Accounts on such Business Day to prepay the Foreign Loans; provided
that, in each case, for the amounts that are in form other than immediately
available funds, the Borrower shall compensate the Administrative Agent for
the cost of collection and clearance of remittances so applied, including
interest for one (1) day, on all uncollected funds applied as provided by
this Section 2.10(b).”

     Section 2.10 Amendment to Section 2.11. Effective as of the Effective Date,
Section 2.11 of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     SECTION 2.11 Prepayment of Loans.

     (a) The Borrower shall have the right at any time and from time to time
to prepay any Borrowing in whole or in part, subject to prior notice in
accordance with paragraph (f) of this Section.

13

 

     (b) Except for Overadvances permitted under Section 2.05, in the event
and on such occasion that (i) the total Revolving Exposure exceeds the
lesser of (A) the aggregate Revolving Commitments or (B) the Borrowing Base,
(ii) the total amount of Revolving Loans outstanding exceeds the Revolving
Loan Sublimit, (iii) the total amount of Foreign Loans outstanding exceeds
the Foreign Loan Limit, or (iv) LC Exposure exceeds the LC Sublimit,
Borrower shall prepay the Revolving Loans, Foreign Loans, LC Exposure and/or
Swingline Loans in an aggregate amount equal to such excess.

     (c) In the event and on each occasion that any Net Proceeds are
received by or on behalf of any Loan Party in respect of any Prepayment
Event, the Borrower shall, promptly after such Net Proceeds are received by
any Loan Party, prepay the Obligations as set forth in Section 2.11(e) below
in an aggregate amount equal to 100% of such Net Proceeds, provided
that, in the case of any event described in clause (a) or (b) of the
definition of the term “Prepayment Event”, if the Borrower shall deliver to
the Administrative Agent a certificate of a Financial Officer to the effect
that the Loan Parties intend to apply the Net Proceeds from such event (or a
portion thereof specified in such certificate), within twelve months after
receipt of such Net Proceeds (or, if the Borrower has entered into a binding
contract within twelve months after such Prepayment Event to acquire assets
useful in its business and/or to repair the affected asset, as applicable,
within eighteen months after such Prepayment Event), to acquire (or replace
or rebuild) real property, equipment or other tangible assets (excluding
inventory) to be used in the business of the Loan Parties, and certifying
that no Default has occurred and is continuing, then either (i) so long as
full cash dominion is not in effect, no prepayment shall be required
pursuant to this paragraph in respect of the Net Proceeds specified in such
certificate or (ii) if full cash dominion is in effect, then such Net
Proceeds shall be deposited in a cash collateral account and in either case,
thereafter, such funds shall be made available to the applicable Loan Party
as follows:

     (1) the applicable Loan Party shall request a release
from the cash collateral account be made in the amount
needed; and

     (2) so long as the conditions set forth in Section 4.02
have been met, the Revolving Lenders shall make such
Revolving Loan and such Foreign Loan or the
Administrative Agent shall release funds from the cash
collateral account;

provided that to the extent of any such Net Proceeds therefrom that have not
been so applied by the end of such twelve month period or eighteen month period, as

14

 

applicable, at which time a prepayment shall be required in an amount equal to such
Net Proceeds that have not been so applied.

     (d) Reserved.

     (e) All such amounts pursuant to Section 2.11(c) (as to any insurance
or condemnation proceeds, to the extent they arise from casualties or losses
to Equipment, Fixtures and real property) shall be applied, first to
prepay any Protective Advances and Overadvances that may be outstanding, pro
rata, and second to prepay the Revolving Loans (including Swing Line
Loans) and Foreign Loans without a corresponding reduction in the Revolving
Commitment and to cash collateralize outstanding LC Exposure. All such
amounts pursuant to Section 2.11(c) (as to any insurance or condemnation
proceeds, to the extent they arise from casualties or losses to cash or
Inventory) shall be applied, first to prepay any Protective Advances
and Overadvances that may be outstanding, pro rata, and second to
prepay the Revolving Loans (including Swing Line Loans) and Foreign Loans
without a corresponding reduction in the Revolving Commitment and to cash
collateralize outstanding LC Exposure. If the precise amount of insurance
or condemnation proceeds allocable to Inventory as compared to Equipment,
Fixtures and real property is not otherwise determined, the allocation and
application of those proceeds shall be determined by the Administrative
Agent, in its Permitted Discretion.

     (f) The Borrower shall notify the Administrative Agent (and, in the
case of prepayment of a Swingline Loan, the Swingline Lender) by telephone
(confirmed by facsimile) of any prepayment hereunder (i) in the case of
prepayment of a Eurodollar Revolving Borrowing or a Eurodollar Foreign
Borrowing, not later than 10:00 a.m., Chicago time, three Business Days
before the date of prepayment, (ii) in the case of prepayment of an ABR
Revolving Borrowing or ABR Foreign Borrowing, not later than 10:00 a.m.,
Chicago time, one Business Day before the date of prepayment or (iii) in the
case of prepayment of a Swingline Loan, not later than 11:00 a.m., Chicago
time, on the date of prepayment. Each such notice shall be irrevocable and
shall specify the prepayment date and the principal amount of each Borrowing
or portion thereof to be prepaid; provided that, if a notice of
prepayment is given in connection with a conditional notice of termination
of the Commitments as contemplated by Section 2.09, then such notice of
prepayment may be revoked if such notice of termination is revoked in
accordance with Section 2.09.
Promptly following receipt of any such notice relating to a Revolving
Borrowing or Foreign Borrowing, the Administrative Agent shall advise the
Lenders of the contents thereof. Each partial prepayment of any Revolving
Borrowing or any Foreign Borrowing shall be in an amount that would be
permitted in the case of an advance of such Borrowing of

15

 

the same Type as
provided in Section 2.02. Each prepayment of a Revolving Borrowing shall be
applied ratably to the Revolving Loans included in the prepaid Borrowing.
Each prepayment of a Foreign Borrowing shall be applied ratably to the
Foreign Loans included in the prepaid Borrowing. Prepayments shall be
accompanied by accrued interest to the extent required by Section 2.13.”

     Section 2.11 Amendment to Section 2.13(c) and (e). Effective as of the Effective
Date, each of Section 2.13(c) and 2.13(e) of the Credit Agreement is amended by
replacing “ABR Revolving Loan” with “ABR Revolving Loan or ABR Foreign Loan (as applicable)”.

     Section 2.12 Amendment to Section 2.14. Effective as of the Effective Date,
Section 2.14 of the Credit Agreement is hereby amended by replacing “Revolving Borrowing”
and “Eurodollar Borrowing” with “Revolving Borrowing or Foreign Loan Borrowing” and “Eurodollar
Revolving Borrowing or Foreign Loan Eurodollar Borrowing (as applicable)”.

     Section 2.13 Amendment to Section 4.02. Effective as of the Effective Date,
Section 4.02(c) of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “(c) After giving effect to any Borrowing or the issuance of any Letter
of Credit, (i) Availability is not less than zero, (ii) the amount of
Revolving Loans does not exceed the Revolving Loan Sublimit, (iii) the
amount of Foreign Loans does not exceed the Foreign Loan Limit and (iv) the
amount of the LC exposure does not exceed the LC Sublimit.”

     Section 2.14 Amendment to Section 5.01(f). Effective as of the Effective Date,
Section 5.01(f) of the Credit Agreement is hereby amended and restated in its entirety as
follows:

     “(f) as soon as available but in any event within three (3) Business Days of
the end of each calendar week, and at such other times as may be requested by the
Administrative Agent, as of the period then ended, a Borrowing Base Certificate and
supporting information in connection therewith, together with any additional reports
with respect to the Borrowing Base as the Administrative Agent may reasonably
request; provided, that at such time as Average 30-Day Availability exceeds
$10,000,000 (a reflected in the previous Borrowing Base Certificate delivered by
Borrower to Administrative Agent), the immediately subsequent Borrowing Base
Certificate to the extent only applying to Domestic Loans and Eligible Receivables
shall not be required until twenty (20) days after the end of the subsequent
calendar month. For the avoidance of doubt, Borrowing Base Certificates for Foreign
Accounts Receivable and items related to the Foreign Loans shall be delivered each
calendar week. Each such report shall
be delivered electronically in a text formatted file acceptable to the
Administrative Agent and contain, at a minimum, the following:

     (i) a detailed aging of the Borrower’s Accounts (1) including all
invoices aged by invoice date and due date (with an explanation of the terms
offered) and (2) reconciled to the Borrowing Base Certificate

16

 

delivered as
of such date prepared in a manner reasonably acceptable to the
Administrative Agent, together with a summary specifying the name, address,
and balance due for each Account Debtor;

     (ii) a worksheet of calculations prepared by the Borrower to determine
Eligible Accounts and Foreign Eligible Accounts, such worksheets detailing
the Accounts excluded from Eligible Accounts and Foreign Eligible Accounts
and the reason for such exclusion;

     (iii) a reconciliation of the Borrower’s Accounts between the amounts
shown in the Borrower’s general ledger and financial statements and the
reports delivered pursuant to clause (i) above;

     (iv) a reconciliation of the loan balance per the Borrower’s general
ledger to the loan balance under this Agreement; and

     (v) a true and correct copy of each work order under any contract that
generates foreign Accounts (including, without limitation, that certain
Master Services Contract dated as of May 10, 2007 between Borrower and BP
Trinidad and Tobago LLC) that is or will be Foreign Eligible Accounts;”

     Section 2.15 Amendment to Section 9.04(b)(i)(A). Effective as of the Effective Date,
Section 9.04(b)(i)(A) of the Credit Agreement is hereby amended and restated in its
entirety as follows:

“(A) the Borrower, provided that no consent of the Borrower shall be
required for an assignment to a Lender, an Affiliate of a Lender, ExIm, an
Approved Fund or, if an Event of Default has occurred and is continuing, any
other assignee.”

     Section 2.16 Amendment to Exhibit C. Effective as of the Effective Date, Exhibit C is
hereby amended and restated in its entirety with the Borrowing Base Certificate attached hereto as
Exhibit A.

     Section 2.17 Amendment to Exhibit D. Effective as of the Effective Date, Exhibit A to
Exhibit D to the Credit Agreement is hereby amended and restated in its entirety with the Exhibit B
attached hereto.

ARTICLE III

Conditions Precedent

     Section 3.01 Conditions. The effectiveness of this Amendment is subject to the
satisfaction of the following conditions precedent (such date on which such conditions are
satisfied being the “Effective Date”), unless specifically waived by Agent and Lenders.

17

 

     (a) Agent shall have received all of the following documents, each
document (unless otherwise indicated) being dated the date hereof, duly
authorized, executed and delivered by the parties thereto, and in form and
substance reasonably satisfactory to Agent and Lenders:

     (i) this Amendment;

     (ii) that certain Second Amendment to Pledge and
Security Agreement dated as of August 22, 2007 between
Borrower and Agent;

     (iii) the ExIm Revolving Credit Note duly executed by
Borrower;

     (iv) the ExIm Documents, duly executed by the Borrower
and ExIm, and any other evidence of ExIm’s consent to and
approval of the transaction contemplated herein to Agent’s
reasonable satisfaction;

     (v) that certain ExIm Waiver letter dated as of August
15, 2007 between ExIm and Administrative Agent;

     (vi) a certified copy of the resolutions of the
Directors of the Borrower authorizing the execution,
delivery and performance of this Amendment and any and all
other Loan Documents executed by the Borrower in connection
therewith, along with a certificate of incumbency certified
by the secretary of the Borrower with specimen signatures of
the officers of the Borrower who are authorized to sign such
documents (such certificates of incumbency to be bring down
certificates of incumbency for Borrower); and

     (vii) such additional documents, instruments and
information as Agent or Lenders or their legal counsel may
reasonably request.

     (b) Agent shall have received in form and substance satisfactory to
Agent, evidence that Borrower has paid the ExIm closing
fee in the amount of $100.00 which shall be fully earned, nonrefundable
and payable on or prior to the Effective Date;

     (c) Agent shall have received in form and substance satisfactory to
Agent, evidence that Borrower has paid the closing fee for the benefit of
ExIm Bank and Lenders in the amount of $75,000.00 which shall be fully
earned, nonrefundable and payable on or prior to the Effective Date;

18

 

     (d) Agent shall have received in form and substance satisfactory to
Agent, certified copies of Borrowers’ credit insurance policies, together
with instruments of assignment, assigning all proceeds to Agent;

     (e) Borrower shall be in full compliance with all requirements of the
ExIm Documents;

     (f) The representations and warranties contained in the Credit
Agreement and/or in the other Loan Documents in each case, as Modified
hereby (herein defined) and as contained herein shall be true and correct as
of the Effective Date as if made on such date, except to the extent such
representations and warranties (i) relate to any matter with respect to
which written notice has been given to Agent and/or Lenders by Loan Parties
pursuant to and in accordance with the Credit Agreement or (ii) which by
their terms expressly speak as of an earlier date;

     (g) No Default or Event of Default shall have occurred and be
continuing;

     (h) All corporate proceedings taken in connection with the transactions
contemplated by this Amendment and all documents, instruments and other
legal matters incident thereto shall be reasonably satisfactory to Agent,
Lenders and their legal counsel.

     Section 3.02 The term “Modified” as used herein shall mean and include expressly
amended or modified, as the case may be, and shall include correlative meanings thereof; provided
however, for the avoidance of doubt, the term “Modified” shall not include any waivers that are
subsequently terminated and of no longer of any force and effect pursuant to the terms hereof.

ARTICLE IV

Ratifications, Representations and Warranties

     Section 4.01 Ratifications. The terms and provisions set forth in this Amendment
shall modify and supersede all inconsistent terms and provisions set forth in the Credit Agreement
and except as Modified and superseded by this Amendment, the terms and provisions of the Credit
Agreement are each ratified and confirmed and shall continue in full force and effect.
Additionally, Borrower hereby ratifies and confirms its agreements under the Credit Agreement
and the other Loan Documents, in each case as Modified hereby, as of each of the date hereof, the
Effective Date. Borrower hereby agrees that all Liens and security interests securing payment of
the Obligations are hereby collectively renewed, ratified and brought forward as security for the
payment and performance of the Obligations, as the same may have been Modified by this Amendment
and the documents executed in connection herewith, in each case as of each of the Effective Date.

19

 

     Section 4.02 Representations and Warranties. Borrower hereby represents and warrants
to Agent and Lenders as of the date hereof and the Effective Date that (i) the execution, delivery
and performance of this Amendment and any and all other Loan Documents executed and/or delivered in
connection herewith have been authorized by all requisite corporate action on the part of the
Borrower and will not violate the certificate/articles of incorporation or other analogous
formation documents of the Borrower (ii) the representations and warranties contained in the Credit
Agreement, and any other Loan Document, in each case as Modified hereby, are true and correct on
and as of the date hereof and as of the Effective Date as though made on and as of such date,
except to the extent any such representations and warranties (A) relate to any matter with respect
to which written notice has been provided by the Borrower pursuant to and in accordance with the
Credit Agreement or (B) which by their terms expressly speak as of an earlier date, (iii) no
Default or Event of Default has occurred and is continuing under the Credit Agreement or the Loan
Documents, each as Modified hereby, (iv) Borrower has not amended its certificate/articles of
incorporation or other analogous formation document or bylaws or other analogous charter or
organizational documents after April 18, 2007.

ARTICLE V

Miscellaneous

     Section 5.01 Survival of Representations and Warranties. All representations and
warranties made in the Credit Agreement or any other document or documents relating thereto,
including, without limitation, any Loan Document furnished in connection with this Amendment, shall
survive the execution and delivery of this Amendment and the other Loan Documents, in each case, as
Modified hereby, and no investigation by Agent or any Lender or any closing shall affect the
representations and warranties or the right of Agent or Lenders to rely upon them.

     Section 5.02 Reference to Credit Agreement; Obligations. Each of the Loan Documents,
including the Credit Agreement and any and all other agreements, documents or instruments now or
hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the
Credit Agreement, are hereby amended so that any reference in such Loan Documents to the Credit
Agreement or any other Loan Documents shall mean a reference to the Credit Agreement or such other
Loan Document, in each case as Modified hereby. Borrower acknowledges and agrees that its
obligations under this Amendment and the Credit Agreement, as amended hereby, constitute
“Obligations” as defined in the Credit Agreement and as used in the Loan Documents.

     Section 5.03 Expenses. As provided in the Credit Agreement, Borrower agrees to pay on
demand all reasonable costs and expenses incurred by Agent in connection with the
preparation, negotiation and execution of this Amendment and the other Loan Documents executed
pursuant hereto and any and all amendments, modifications, and supplements thereto, including,
without limitation, the reasonable costs and fees of Agent’s legal counsel, and all reasonable
costs and expenses incurred by Agent in connection with the enforcement or preservation of any
rights under the Credit Agreement or any other Loan Document, in each case as Modified hereby.

20

 

     Section 5.04 Severability. Any provision of this Amendment held by a court of
competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder
of this Amendment and the effect thereof shall be confined to the provision so held to be invalid
or unenforceable. Furthermore, in lieu of each such invalid or unenforceable provision there shall
be added automatically as a part of this Amendment a valid and enforceable provision that comes
closest to expressing the intention of such invalid unenforceable provision.

     Section 5.05 APPLICABLE LAW. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN ANY OF THE
LOAN DOCUMENTS, IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE,
THIS AMENDMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED, AND
ENFORCED IN ACCORDANCE WITH THE INTERNAL LAWS (WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS)
OF THE STATE OF TEXAS, BUT GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

     Section 5.06 Successors and Assigns. This Amendment is binding upon and shall inure
to the benefit of Agent, Lenders, the Borrower and their respective successors and assigns, except
that the Borrower may not assign or transfer any of its rights or obligations hereunder without the
prior written consent of each Lender.

     Section 5.07 Counterparts. This Amendment may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original, but all of which
when taken together shall constitute one and the same instrument.

     Section 5.08 No Waiver. Nothing contained herein shall be construed as a waiver by
Agent or Borrower of any covenant or provision of the Credit Agreement, Security Agreement, the
other Loan Documents, or of any other contract or instrument between Borrower and Agent, and the
failure of Agent at any time or times hereafter to require strict performance by the Borrower of
any provision thereof shall not waive, affect or diminish any right Agent has to thereafter demand
strict compliance therewith. Agent hereby reserves all rights granted under the Credit Agreement,
Security Agreement, other Loan Documents, and any other contract or instrument between the Borrower
and Agent.

     Section 5.09 Headings. The headings, captions, and arrangements used in this
Amendment are for convenience only and shall not affect the interpretation of this Amendment.

     Section 5.10 Release. BORROWER ACKNOWLEDGES THAT, BASED ON THE FACTS AND
CIRCUMSTANCES KNOWN TO BORROWER AS OF THE DATE HEREOF,
IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR
NATURE WHATSOEVER RESULTING FROM THE CREDIT AGREEMENT, THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE
“OBLIGATIONS” OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM AGENT OR LENDERS.
BORROWER HEREBY VOLUNTARILY AND KNOWINGLY RELEASE AND FOREVER DISCHARGE AGENT AND LENDER, THEIR
RESPECTIVE PREDECESSORS, OFFICERS, DIRECTORS,

21

 

EMPLOYEES, AGENTS, SUCCESSORS AND ASSIGNS, FROM ALL
POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES
WHATSOEVER, IN EACH CASE, TO THE EXTENT (A) KNOWN, ANTICIPATED OR SUSPECTED BY BORROWER AS OF THE
DATE HEREOF AND (B) RESULTING FROM THE CREDIT AGREEMENT, THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS, WHETHER FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR
IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED, WHICH BORROWER MAY NOW HAVE AGAINST AGENT
AND ANY LENDER, THEIR PREDECESSORS, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, SUCCESSORS AND ASSIGNS,
IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW
OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY LOANS, INCLUDING, WITHOUT LIMITATION, ANY
CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE
HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE CREDIT AGREEMENT
OR OTHER LOAN DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT.

     Section 5.11 NO ORAL AGREEMENTS. 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 AGREEMENTS BETWEEN THE PARTIES.

[Remainder of Page Intentionally Left Blank; Signature Pages Follow.]

22

 

     IN WITNESS WHEREOF, this Amendment has been executed on the Effective Date.

	 	 	 	 	 
	 	BORROWER:

SUPERIOR OFFSHORE INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Thomas E. Daman
 	 
	 	 	Name:  	Thomas E. Daman 	 
	 	 	Title:  	Vice President and Treasurer 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	AGENT:

JPMORGAN CHASE BANK, N.A.

Individually, as Administrative Agent and Lender

 	 
	 	By:  	/s/ Christy West
 	 
	 	 	Name:  	Christy West 	 
	 	 	Title:  	Vice President 	 
	 
	Acknowledged by:  	JPMORGAN CHASE BANK, N.A. (Global Trade Services)

 	 
	 	By:  	/s/ Randall Mascorro
 	 
	 	 	Name:  	Randall Mascorro 	 
	 	 	Title:  	Vice President 	 
	 

 

 

EXHIBIT A 

TO THE

THIRD AMENDMENT TO CREDIT AGREEMENT

BORROWING BASE CERTIFICATE

	 	 	 	 	 
	BORROWING BASE REPORT
	 
	 	 	 	 
	 
	 	 	 	Rpt #
	Obligor Number:
	 	 	 	Date:
	Loan Number:
	 	 	 	Period Covered: ____________ to ____________ 
	 
	 	 	 	 
	DOMESTIC COLLATERAL CATEGORY
	 	A/R	 	TOTAL
	 
	 	 	 	 
	Description
	 	 	 	 
	1 Beginning Balance (Previous
report — Line 8)
	 	 	 	 
	2 Additions to Accounts
Receivables (Gross Sales or
Purchases)
	 	 	 	 
	3 Other Additions (Add back any
non-A/R cash in line 3
	 	 	 	 
	4 Deductions to Accounts
Receivables (Cash Received)
	 	 	 	 
	5 Deductions to Accounts
Receivables (Discounts, other)
	 	 	 	 
	6 Deductions to Accounts
Receivables (Credit Memos, all)
	 	 	 	 
	7 Other non-cash credits to A/R
	 	 	 	 
	8 Total Ending Accounts
Receivables Balance
	 	 	 	 
	9 Less Ineligible — Past Due
	 	 	 	 
	10 Less Ineligible — Cross-age
(20%)
	 	 	 	 
	11 Less Ineligible — Foreign
	 	 	 	 
	12 Less Ineligible — Contra
	 	 	 	 
	13 Less Ineligible — Other
(attached schedule)
	 	 	 	 
	14 Total Ineligibles — Accounts
Receivable
	 	 	 	 
	15 Reserved.
	 	 	 	 
	16 Reserved.
	 	 	 	 
	17 Reserved.
	 	 	 	 
	18 Reserved.
	 	 	 	 
	19 Reserved.
	 	 	 	 
	20 Reserved.
	 	 	 	 
	21 Total Eligible Collateral
	 	 	 	 

 

 

	 	 	 	 	 
	22 Advance Rate Percentage
	 	85%	 	 
	23 Net Available — Borrowing Base
for Eligible Receivables Value
	 	 	 	 
	24 Reserves (Sum of A, B and C
below)
	 	 	 	 
	               A) Contractor Reserves
	 	 	 	 
	               B) Outstanding Amount
of Foreign Loans
	 	 	 	 
	               C) Other Reserves
	 	 	 	 
	25 Total Borrowing Base for
Eligible Receivables Value
	 	 	 	 
	26 CAPS/Loan Limits
	 	 	 	Total
CAPS/Loan Line
	27 Maximum Borrowing Limit (Lesser
of 25. or 26.)*
	 	 	 	Total Available
	 
	 	 	 	 
	LOAN STATUS
	 	 	 	 
	28 Previous Loan Balance (Previous
Report Line 31)
	 	 	 	 
	29 Less: A. Net Collections (Same
as line 4)
	 	 	 	 
	               B. Adjustments/Other ________
	 	 	 	 
	30 Add: A. Request for Funds
	 	 	 	 
	               B. Adjustments/Other ________
	 	 	 	 
	31 New Loan Balance
	 	 	 	 
	32 Letter of Credit/BA’s
outstanding
	 	 	 	 
	33 Availability Not Borrowed
(Lines 27 less 31 & 32)
	 	 	 	 
	34 [Reserved]
	 	 	 	Total New Loan Balance:
	35 OVERALL DOMESTIC EXPOSURE
(lines 31 & 34)
	 	 	 	 

 

 

	 	 	 	 	 
	 
	 	 	 	Rpt #
	Obligor Number:
	 	 	 	Date:
	Loan Number:
	 	 	 	Period Covered: ___________ to ___________ 
	 
	 	 	 	 
	FOREIGN COLLATERAL CATEGORY
	 	A/R	 	TOTAL
	 
	 	 	 	 
	Description
	 	 	 	 
	36 Beginning Balance
(Previous report — Line 8)
	 	 	 	 
	37 Additions to Accounts
Receivables (Gross Sales or
Purchases) from Account
Debtors located in a
Permitted Foreign Country
(“Foreign Account
Receivables”)
	 	 	 	 
	38 Other Additions (Add back
any non-A/R cash in line 38)
	 	 	 	 
	39 Deductions to Foreign
Account Receivables (Cash
Received)
	 	 	 	 
	40 Deductions to Foreign
Accounts Receivables
(Discounts, other)
	 	 	 	 
	41 Deductions to Accounts
Receivables (Credit Memos,
all)
	 	 	 	 
	42 Other non-cash credits to
Foreign Account Receivables
	 	 	 	 
	43 Total Ending Accounts
Receivables Balance
	 	 	 	 
	44 Less Ineligible — Past Due
	 	 	 	 
	45 Reserved.
	 	 	 	 
	46 Less Ineligible — Contra
	 	 	 	 
	47 Less Ineligible — Other
(attached schedule)
	 	 	 	 
	48 Total Ineligibles -
Accounts Receivable
	 	 	 	 
	49 Reserved.
	 	 	 	 
	50 Reserved.
	 	 	 	 
	51 Reserved.
	 	 	 	 
	52 Reserved.
	 	 	 	 
	53 Reserved.
	 	 	 	 
	54 Reserved.
	 	 	 	 
	55 Total Eligible Collateral
	 	 	 	 
	56 Advance Rate Percentage
	 	90%	 	 
	57 Net Available — Borrowing
	 	 	 	 

 

 

	 	 	 	 	 
	Base for Foreign Eligible
Receivables Value
	 	 	 	 
	58 Reserves (Sum of A and B
below)
	 	 	 	 
	               A) Other Reserves
	 	 	 	 
	59 Total Borrowing Base for
Foreign Eligible Receivables
Value
	 	 	 	 
	60 CAPS/Loan Limits
	 	 	 	Total
CAPS/Loan Line
	61 Maximum Borrowing Limit
(Lesser of 59. or 60.)*
	 	 	 	Total Available
	 
	 	 	 	 
	LOAN STATUS
	 	 	 	 
	62 Previous Loan Balance
(Previous Report Line 66)
	 	 	 	 
	63 Less: A. Net Collections
(Same as line 39)
	 	 	 	 
	               B. Adjustments/Other _________
	 	 	 	 
	64 Add: A. Request for Funds
	 	 	 	 
	               B. Adjustments/Other
_________
	 	 	 	 
	65 New Loan Balance
	 	 	 	 
	66 Letter of Credit/BA’s
outstanding
	 	 	 	 
	67 Availability Not Borrowed
(Lines 61 less 65 & 66)
	 	 	 	 
	68 [Reserved]
	 	 	 	Total New Loan Balance:
	69 OVERALL FOREIGN EXPOSURE
(lines 65 & 68)
	 	 	 	 

Pursuant to, and in accordance with, the terms and provisions of that certain Credit
Agreement (“Agreement”), among JPMorgan Chase Bank, N.A., as administrative agent for
the Lenders, the Loan Parties and Superior Offshore International, Inc. (“Borrower”),
Borrower is executing and delivering to Administrative Agent this Collateral Report
accompanied by supporting data (collectively referred to as the “Report”). Borrower
represents and warrants to Administrative Agent that this Report is true and correct,
and is based on information contained in Borrower’s own financial accounting records.
Borrower, by the execution of this Report, hereby ratifies, confirms and affirms all
of the terms, conditions and provisions of the Agreement, and further certifies on
this ___ day of _________, 20__, that the Borrower is in compliance with
said Agreement.

					
	 	 	 	 	 
	BORROWER NAME:
	 	AUTHORIZED SIGNATURE:
	 	 

 

 

Exhibit A to Compliance Certificate

Superior Offshore International, L.L.C.

Average 30-Day Domestic Availability Calculation

As of _____________, ___, _______

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total Credit Line	 	 	Borrowing Base	 
	No. of Days	 	Date	 	 	Day of Week	 	 	Borrowing Base	 	 	Borrowing	 	 	Capacity	 
	1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	7
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	10
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	11
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	12
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	13
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	14
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	15
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	16
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	17
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	18
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
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	25
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
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	30
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	$	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Average Availability	 	$	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

 

Exhibit A to Compliance Certificate continued

Superior Offshore International, L.L.C.

Average 30-Day Foreign Availability Calculation

As of _____________, ___, _______

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total Credit Line	 	 	Borrowing Base	 
	No. of Days	 	Date	 	 	Day of Week	 	 	Borrowing Base	 	 	Borrowing	 	 	Capacity	 
	1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
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	30
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	$	—	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Average Availability	 	$	—

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]