Document:

exv10w1

 

Exhibit 10.1

FORM OF

HYDRIL COMPANY CHANGE IN CONTROL RENEWAL AGREEMENT

WITH EXECUTIVE OFFICERS

HYDRIL COMPANY

3300 North Sam Houston Parkway East

Houston, Texas 77032

February 14, 2005

[Name of Executive Officer]

Hydril Company

3300 North Sam Houston Parkway East

Houston, Texas 77032

	   	Re: Change in Control Renewal Agreement

Dear [Name of Executive Officer]:

     Hydril Company (the “Corporation”) considers it essential to the best interests of its
stockholders to foster the continuous employment of key management personnel. In connection with
this, the Corporation’s Board of Directors (the “Board”) recognizes that, as is the case with many
corporations, the possibility of a change in control of the Corporation may exist and that such
possibility, uncertainty, and questions that it may raise among management, could result in the
departure or distraction of management personnel to the detriment of the Corporation and its
stockholders.

     The Board previously had decided to reinforce and encourage the continued attention and
dedication of members of the Corporation’s management, including yourself, to their assigned duties
without distraction arising from the possibility of a change in control of the Corporation and had
entered into a letter agreement with you dated _________, concerning certain benefits to be paid
to you upon severance from employment with the Corporation following a change of control (the
“Prior Agreement”).

     The Corporation has now determined to offer to enter into a renewal letter agreement of the
Prior Agreement (the “Renewal Agreement”). In order to induce you to remain in its employ, the
Corporation hereby agrees that after this Renewal Agreement has been fully executed, you shall
receive the severance benefits set forth in the Prior Agreement in the event your employment with
the Corporation or one or more of its subsidiaries is terminated under the circumstances described
below subsequent to a “Change of Control” (as defined in Section 2 of the Prior Agreement).
Furthermore, after execution of this Renewal Agreement in full, you and the Corporation agree to be
subject to all of the other rights and obligations set forth in the Prior Agreement (excluding
Section 1 thereof). This Renewal Agreement shall expire on June 30, 2005.

 

 

     Please sign a copy of this Renewal Agreement and return it to me, while retaining an original
for your files.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	By:  	 
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Agreed to this 14th day of February, 2005

	 	 	 	 	 
	 
	By:  	 	 	 
	 	[Name of Executive Officer] 	 	 
	 	 	 	 
	 

2<PAGE>
                                                                    EXHIBIT 10.1

                               AMENDMENT NO. 3 TO
                               TERM LOAN AGREEMENT

      THIS AMENDMENT NO. 3 TO TERM LOAN AGREEMENT (the "Amendment"), dated
February 14, 2005, is entered into by and among ARDEN REALTY LIMITED
PARTNERSHIP, a Maryland limited partnership ("Borrower"), WELLS FARGO BANK,
NATIONAL ASSOCIATION ("Administrative Agent"), in its capacity as Administrative
Agent, Sole Lead Arranger and as a Lender (Wells Fargo Bank, National
Association, is sometimes herein also referred to as "Wells Fargo").

                                 R E C I T A L S

A.    Pursuant to the terms of a Term Loan Agreement, dated as of June 12, 2002
      between Borrower and Lender, as amended by an Amendment No. 1 to Term Loan
      Agreement dated June 19, 2003 and as further amended by an Amendment No. 2
      to Term Loan Agreement dated June 30, 2004 (as amended, the "Loan
      Agreement"), Lender loaned to Borrower the principal amount of
      SEVENTY-FIVE MILLION DOLLARS ($75,000,000) (the "Loan"). The Loan is
      evidenced by certain promissory notes executed by Borrower in favor of
      Lender, which promissory notes aggregate to the principal amount of the
      Loan (collectively, the "Notes"), and is further evidenced by the
      documents described in the Loan Agreement as the "Loan Documents." All
      capitalized and herein undefined terms shall have the meanings as set
      forth in the Loan Agreement.

B.    By letter dated July 31, 2003 from Borrower to Administrative Agent,
      Borrower exercised its option pursuant to Section 2.1(e) of the Loan
      Agreement to extend the Maturity Date to June 13, 2006.

C.    By this Amendment, Borrower and Lender intend to extend the term of the
      Loan to February 14, 2012, and to modify and amend certain terms and
      provisions of the Loan Documents.

      NOW, THEREFORE, Borrower, Administrative Agent and Lender agree as
follows:

      1.    CONDITIONS PRECEDENT. The following are conditions precedent to
Lender's obligations under this Amendment:

            1.1   Reimbursement to Administrative Agent by Borrower of
Administrative Agent's costs and expenses incurred in connection with this
Amendment and the transactions contemplated hereby and payment of all other
amounts due to Administrative Agent in connection with this Amendment,
including, without limitation, reasonable attorneys' fees and documentation
costs and charges, whether such services are furnished by Administrative Agent's
employees or agents or by independent contractors;

            1.2   The representations and warranties contained in this Amendment
are true and correct;

            1.3   All payments due and owing to Lender under the Loan Documents
have been paid current as of the effective date of this Amendment; and

<PAGE>

            1.4   In addition to those amounts due and owing by Borrower
pursuant to Section 1.1 and Section 1.3 of this Amendment, Borrower shall have
paid to Administrative Agent an amount equal to $150,000 for the benefit of
Lender in connection with Lender's approval of this Amendment.

      2.    REPRESENTATIONS AND WARRANTIES. Borrower hereby represents and
warrants that no Event of Default or Unmatured Event of Default exists under any
of the Loan Documents (as modified by this Amendment) and that all
representations and warranties herein and in the other Loan Documents are true
and correct, which representations and warranties shall survive execution of
this Amendment.

      3.    MODIFICATION OF LOAN DOCUMENTS. The Loan Documents are hereby
supplemented and modified to incorporate the following, which shall supersede
and prevail over any conflicting provisions of the Loan Documents:

            3.1   Schedule 1.1. Schedule 1.1 of the Loan Agreement is hereby
deleted in its entirety and replaced with the Schedule set forth as Exhibit B
attached hereto and made a part hereof.

            3.2   Applicable Fixed Rate Margin. The definition of "Applicable
Fixed Rate Margin" set forth in the Loan Agreement is hereby deleted in its
entirety and replaced by the following:

            "Applicable Fixed Rate Margin" means (i) prior to June 13, 2006, one
            and one-quarter percent (1.25%), and (ii) from and after June 13,
            2006, one and three-tenths percent (1.30%).

            3.3   Term. Section 2.1(d) of the Loan Agreement is hereby deleted
in its entirety and replaced with the following:

            (d)   Term. The outstanding balance of the Loan shall be payable in
                  full on the earliest to occur of, (i) February 14, 2012, (ii)
                  the acceleration of the Loan pursuant to Section 9.2(a), or
                  (iii) Borrower's written notice to Administrative Agent
                  (pursuant and subject to Section 2.6(a)) of Borrower's
                  election to prepay all accrued Obligations and terminate the
                  Loan (said earlier date referred to herein as the "Maturity
                  Date").

            3.4   Extension of Maturity Date. Section 2.1(e) is hereby deleted
in its entirety, it being the intention of Borrower and the Lender that there
not be any further options to extend the term of the Loan.

            3.5   Voluntary Prepayments. Section 2.6(a) is hereby deleted in its
entirety and replaced with the following:

            (a)   Voluntary Prepayments. Borrower may, upon not less than three
                  (3) Business Days prior written notice to Administrative Agent
                  not later than 11:00 A.M. (San Francisco time) on the

                                        2

<PAGE>

                  date given, at any time and from time to time, prepay the
                  Loan, in whole or in part, upon the terms and conditions set
                  forth herein. In connection with the prepayment of all or any
                  portion of the Loan, whether such payment is made voluntarily
                  by Borrower or as a result of an acceleration of the Loan by
                  Lenders following a Event of Default, Borrower shall pay to
                  Lenders, in addition to any fees and costs which may be
                  incurred by Lenders in connection with the prepayment of the
                  Loan, including any Fixed Rate Price Adjustment, a prepayment
                  premium as set forth on Schedule 2.6 attached hereto. Any
                  notice of prepayment given to Administrative Agent under this
                  Section 2.6(a) shall specify the date of prepayment and the
                  aggregate principal amount of the prepayment. In the event of
                  a prepayment of any Fixed Rate Portion, Borrower shall pay any
                  Fixed Rate Price Adjustment payable in respect thereof in
                  accordance with Section 2.4(h). Administrative Agent shall
                  provide to each Lender a conforming copy of such notice on the
                  same Business Day such notice is received.

            BY INITIALING THIS PROVISION WHERE INDICATED BELOW, BORROWER
            CONFIRMS THAT LENDERS' AGREEMENT TO MAKE THE LOAN AT THE INTEREST
            RATES AND ON THE OTHER TERMS SET FORTH HEREIN AND IN THE OTHER LOAN
            DOCUMENTS CONSTITUTES ADEQUATE AND VALUABLE CONSIDERATION, GIVEN
            INDIVIDUAL WEIGHT BY BORROWER, FOR THIS AGREEMENT, AND BORROWER
            HEREBY WAIVES ANY DEFENSE IT MAY HAVE AT LAW OR IN EQUITY THAT ANY
            PREPAYMENT PREMIUM PROVIDED FOR HEREIN IS A PENALTY, BORROWER
            EXPRESSLY ACKNOWLEDGING THAT LENDERS HAVE MADE THE FINANCIAL
            ACCOMMODATIONS CONTEMPLATED BY THIS AGREEMENT IN RELIANCE ON THE
            AGREEMENTS AND WAIVER OF BORROWER AND THAT LENDERS WOULD NOT HAVE
            DONE SO WITHOUT SUCH AGREEMENTS AND WAIVERS.

                    Borrower Initials: /s/ RICHARD S. DAVIS
                                       --------------------

            3.6   Schedule 2.6. Schedule 2.6 of the Loan Agreement is hereby
deleted in its entirety and replaced with the Schedule set forth as Exhibit A
attached hereto and made a part hereof.

      4.    EFFECTIVENESS OF THIS AMENDMENT. The Amendment and all of the
provisions hereof shall become effective upon the satisfaction of all of the
conditions precedent set forth in Section 1 above and the execution of the
Amendment by all parties hereto.

                                        3

<PAGE>

      5.    FORMATION AND ORGANIZATIONAL DOCUMENTS. Borrower has previously
delivered to Administrative Agent all of the relevant formation and
organizational documents of Borrower and Guarantor, and all such formation
documents remain in full force and effect and have not been amended or modified
since they were delivered to Administrative Agent. Borrower hereby certifies
that: (i) the above documents are all of the relevant formation and
organizational documents of Borrower and Guarantor; (ii) they remain in full
force and effect; and (iii) they have not been amended or modified since they
were previously delivered to Administrative Agent.

      6.    NON-IMPAIRMENT. Except as expressly provided herein, nothing in this
Amendment shall alter or affect any provision, condition, or covenant contained
in the Notes or other Loan Documents or affect or impair any rights, powers, or
remedies of Lender, it being the intent of the parties hereto that the
provisions of the Notes and other Loan Documents shall continue in full force
and effect except as expressly modified hereby. Nothing contained herein shall
serve to waive any of Lender's rights or remedies as a result of Borrower's
non-compliance with any provision of the Loan Agreement or the Loan Documents
either before or after the date hereof.

      7.    MISCELLANEOUS. This Amendment and the other Loan Documents shall be
governed by and interpreted in accordance with the laws of the State of
California, except if preempted by federal law. Time is of the essence of each
term of the Loan Documents, including this Amendment. If any provision of this
Amendment or any of the other Loan Documents shall be determined by a court of
competent jurisdiction to be invalid, illegal or unenforceable, that portion
shall be deemed severed from this Amendment and the remaining parts shall remain
in full force as though the invalid, illegal, or unenforceable portion had never
been a part thereof.

      8.    INTEGRATION; INTERPRETATION. The Loan Documents, including this
Amendment, contain or expressly incorporate by reference the entire agreement of
the parties with respect to the matters contemplated therein and supersede all
prior negotiations, written or oral. The Loan Documents shall not be modified
except by written instrument executed by all parties. Any reference to the Loan
Documents includes any amendments, renewals or extensions now or hereafter
approved by Administrative Agent and Lender in writing.

      9.    EXECUTION IN COUNTERPARTS. To facilitate execution, this document
may be executed in as many counterparts as may be convenient or required. It
shall not be necessary that the signature of, or on behalf of, each party, or
that the signature of all persons required to bind any party, appear on each
counterpart. All counterparts shall collectively constitute a single document.
It shall not be necessary in making proof of this document to produce or account
for more than a single counterpart containing the respective signatures of, or
on behalf of, each of the parties hereto. Any signature page to any counterpart
may be detached from such counterpart without impairing the legal effect of the
signatures thereon and thereafter attached to another counterpart identical
thereto except having attached to it additional signature pages.

                  (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK)

                                        4

<PAGE>

      IN WITNESS WHEREOF, Borrower, Administrative Agent and Lender have caused
this Amendment to be duly executed as of the date first above written.

      BORROWER:               ARDEN REALTY LIMITED PARTNERSHIP,
                              a Maryland limited partnership

                              By:      ARDEN REALTY, INC.,
                                       a Maryland corporation,
                                       Its sole general partner

                                       By: /s/ RICHARD S. DAVIS
                                           -------------------------------------
                                       Name: Richard S. Davis
                                             -----------------------------------
                                       Its: Executive Vice President and Chief
                                            Financial Officer
                                            ------------------------------------

      ADMINISTRATIVE AGENT    WELLS FARGO BANK,
      AND LENDER:             NATIONAL ASSOCIATION

                              By: /s/ TODD T. POPOVICH
                                  ----------------------------------------------
                              Name: Todd T. Popovich
                                    --------------------------------------------
                              Its: Vice President
                                   ---------------------------------------------

                                        5

<PAGE>

                               GUARANTOR'S CONSENT

      The undersigned ("Guarantor") consents to the foregoing AMENDMENT NO. 3 TO
TERM LOAN AGREEMENT and the transactions contemplated thereby and reaffirms its
obligations under the Repayment Guaranty ("Guaranty") dated as of June 12, 2002,
and its waivers, as set forth in the Guaranty, of each and every one of the
possible defenses to such obligations. Guarantor further reaffirms that its
obligations under the Guaranty are separate and distinct from Borrower's
obligations.

                  Dated as of: February 14, 2005

                  ARDEN REALTY, INC., a Maryland corporation

                  By /s/ RICHARD S. DAVIS
                     ------------------------------------------
                  Name: Richard S. Davis
                        ---------------------------------------
                  Its: Executive Vice President and Chief
                       Financial Officer
                       ----------------------------------------

                                       6

<PAGE>

                                    EXHIBIT A

                                  SCHEDULE 2.6
                               PREPAYMENT PREMIUMS

<TABLE>
<CAPTION>
  DATE OF PARTIAL OR WHOLE PREPAYMENT                                 PREPAYMENT PREMIUM
  -----------------------------------                                 ------------------
<S>                                                    <C>
February 14, 2005 to February 14, 2006                 0.375% of the aggregate principal amount of the prepayment
February 15, 2006 to February 14, 2007                 0.25% of the aggregate principal amount of the prepayment
February 15, 2007 to February 14, 2008                 0.15% of the aggregate principal amount of the prepayment
February 15, 2008 to February 14, 2009                 0.10% of the aggregate principal amount of the prepayment
February 15, 2009 to February 14, 2012                                            None
</TABLE>

                                        7

<PAGE>

                                    EXHIBIT B

                                  SCHEDULE 1.1
                                 PRO RATA SHARES

<TABLE>
<CAPTION>
LENDER                                      PRO RATA SHARE        AMOUNT
------                                      --------------        ------
<S>                                         <C>                  <C>
Wells Fargo Bank, National Association           100%           $75,000,000

ALL LENDERS                                      100%           $75,000,000
</TABLE>

                                       8

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