Document:

exv10w3

 

Exhibit 10.3

FIRST AMENDMENT TO

AMENDED AND RESTATED PURCHASE AGREEMENT

     This FIRST AMENDMENT TO AMENDED AND RESTATED PURCHASE AGREEMENT (the “First
Amendment”), dated as of the 28th day of April, 2006, is made by and among Horizon
Offshore, Inc., a Delaware corporation (the “Issuer”), each subsidiary of the Parent listed
as a “Guarantor” on the signature pages hereto (each a “Guarantor” and
collectively, the “Guarantors”), and the holders listed on the signature pages hereto (each
a “Noteholder” and collectively, the “Noteholders”).

W I T N E S S E T H:

     WHEREAS, the Issuer and the holders signatory thereto (the “Original Noteholders”)
entered into that certain Purchase Agreement, dated as of May 27, 2004 (the “Original Purchase
Agreement”), pursuant to which the Issuer issued to the Original Noteholders $29,353,343.30
aggregate principal amount of its 18% Subordinated Senior Notes due March 31, 2007 (the
“Notes”);

     WHEREAS, on March 31, 2005, the Issuer and the Original Noteholders entered into that certain
recapitalization letter agreement pursuant to which the Original Noteholders agreed to, among
other things, (i) exchange $22,680,480.34 aggregate principal amount of the Original Notes for
shares of Common Stock and Series B Preferred Stock (the “Exchange Transaction”) such that
only $6,672,862.96 aggregate principal amount of Notes was to remain outstanding after the
consummation of the Exchange Transaction, (ii) amend the terms of the Notes, and (iii) enter into
an amendment and restatement of the Original Purchase Agreement;

     WHEREAS, the Issuer, the Guarantors and the Noteholders entered into that certain Amended and
Restated Purchase Agreement, dated as of April 30, 2005 (the “Purchase Agreement”),
pursuant to which the terms of the Notes were amended; and

     WHEREAS, the Issuer, the Guarantors and the Noteholders signatory hereto desire to amend
Schedule 1 to the Purchase Agreement in order to reflect more accurately the Senior Debt.

     NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and
premises contained herein, together with other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto have agreed and do hereby agree as
follows:

     1. Capitalized terms used in this First Amendment, and not otherwise defined herein, shall
have the meanings assigned to them in the Purchase Agreement.

     2. Schedule 1 to the Purchase Agreement is hereby deleted in its entirety and Schedule 1
attached hereto is inserted in lieu thereof.

     3. The Issuer and the Guarantors hereby represent and warrant to the Noteholders that (i) each
of the representations and warranties of the Issuer and the Guarantors contained in

1

 

the Purchase Agreement are true, correct and complete as of the date hereof and apply to the
execution of this First Amendment and any other documents executed in connection herewith; (ii) the
Issuer and the Guarantors have complied with all covenants, terms and other conditions set forth in
the Purchase Agreement as of the date hereof; and (iii) there exists no Event of Default as of the
date hereof.

     4. It is further understood and agreed by and among the parties hereto that all terms and
conditions of the Purchase Agreement, except as herein modified, shall remain in full force and
effect.

     5. The parties hereto confirm, severally and not jointly, that to the best of their knowledge
the Noteholders signatory hereto constitute the Required Holders as that term is defined and used
in the Purchase Agreement.

     6. This First Amendment may be executed in multiple counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument. This
First Amendment will be effective when a counterpart hereof has been executed on behalf of the
Issuer, each Guarantor and the Required Holders.

[Signatures on following pages.]

2

 

     IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to Amended and
Restated Purchase Agreement to be duly executed as of the day and year first above written.

	 	 	 	 	 
	 	 	ISSUER:
	 
	 	 	 	 
	 	 	HORIZON OFFSHORE, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	GUARANTORS:
	 
	 	 	 	 
	 	 	HORIZON VESSELS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	HORIZON OFFSHORE CONTRACTORS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	HORIZON SUBSEA SERVICES, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	HORIZON VESSELS INTERNATIONAL, LTD.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	HORIZEN, LLC
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

3

 

	 	 	 	 	 
	 	 	ECH OFFSHORE, S. DE R.L. DE C.V.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	HOC OFFSHORE, S. DE R.L. DE C.V.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	NOTEHOLDERS:
	 
	 	 	 	 
	 	 	ELLIOTT ASSOCIATES, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Elliott Capital Advisors, L.P.,
	 

	 	 	 	as General Partner
	 
	 	 	 	 
	 

	 	By:
	 	Braxton Associates, Inc.,
	 

	 	 	 	as General Partner
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 
	 
	 	 	 	 
	 	 	FALCON MEZZANINE PARTNERS, LP
	 
	 	 	 	 
	 

	 	By:
	 	Falcon Mezzanine Investments, LLC, its
	 

	 	 	 	General Partner
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

	 	 	 	 	 	 	 
	 	 	LLOYD I. MILLER
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Lloyd I. Miller
	 

	 	 	 	 	 	in his individual capacity
	 
	 	 	 	 	 	 
	 	 	MILFAM I, L.P.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Lloyd I. Miller
	 

	 	 	 	Title:
	 	Limited Partner

4

 

SCHEDULE 1

SENIOR DEBT DOCUMENTS

	(1)	 	Loan Agreement, dated March 9, 2006, among Horizon Vessels, Inc., as borrower, The CIT
Group/Equipment Financing, Inc., Merrill Lynch Capital, a Division of Merrill Lynch Business
Financial Services, Inc., Ableco Finance, LLC, A3 Funding LP, AIG Commercial Equipment
Finance, Inc. and GATX Financial Corporation, as lenders, and The CIT Group/Equipment
Financing, Inc., as agent for the lenders, as amended through the date hereof, and any notes,
guarantees, security agreements and mortgages executed with respect thereto.
	 
	(2)	 	Loan Agreement, dated June 29, 2001, between Horizon Vessels, Inc. and General Electric
Capital Corporation, as amended through the date hereof, and any notes, guarantees, security
agreements and mortgages executed with respect thereto.
	 
	(3)	 	Amended and Restated Loan Agreement, executed March 11, 2004 but dated June 29, 2001, between
Horizon Vessels, Inc., Horizon Offshore, Inc. and Horizon Offshore Contractors, Inc. and
General Electric Capital Corporation (successor in interest to Wachovia Bank, National
Association, which was successor by merger to SouthTrust Bank), as amended through the date
hereof, and any notes, guarantees, security agreements and mortgages executed with respect
thereto.
	 
	(4)	 	Loan Agreement, dated June 30, 2003, between Horizon Vessels International Ltd. and General
Electric Credit Corporation of Tennessee, as amended through the date hereof, and any notes,
guarantees, security agreements and mortgages executed with respect thereto.
	 
	(5)	 	Term Loan, Guaranty and Security Agreement, dated as of February 17, 2006, among Horizon
Vessels, Inc., as borrower, Horizon Offshore, Inc., as guarantor, and General Electric Capital
Corporation, as lender, as amended through the date hereof, and any notes, guarantees,
security agreements and mortgages executed with respect thereto.
	 
	(6)	 	Revolving Credit and Security Agreement, to be dated on or about April 28, 2006, among PNC
Bank, National Association (as agent and lender), and Horizon Offshore, Inc., Horizon Offshore
Contractors, Inc., HOC Offshore, S. de R.L. de C.V., Horizon Marine Contractors (Malaysia) Sdn
Bhd, PT Horizon Offshore Indonesia, Horizon Marine Construction (Mauritius) Ltd. and Horizon
Marine Construction Ltd. (Borrowers), and any notes, guarantees, security agreements and
mortgages executed with respect thereto.
	 
	(7)	 	Loan Agreement, dated November 1, 2001, by and between Amegy Bank of Texas, N.A. (successor
by merger to Southwest Bank of Texas, N.A.), as lender, and Horizon Vessels, Inc., as
borrower, as amended through the date hereof, and any notes, guarantees, security agreements
and mortgages executed with respect thereto.exv10w1

 

Exhibit 10.1

April 28, 2006

By Personal Delivery

Mr. Richard E. Goodrich

3 Oakley Downs

The Woodlands, TX 77382

Dear Rich:

We have agreed to amend your Severance Agreement (the “Agreement”) and our previous letter
agreements amending that Agreement so that you will remain employed by Chicago Bridge & Iron
Company (Delaware) (“Company” or “CB&I”) through May 31, 2006 (although we could mutually agree in
writing to shorten or extend that period).

While you continue to be an employee of CB&I, you will continue to receive compensation at your
current base salary and will continue to receive all Company benefits (including perquisites) you
were receiving as of the date you signed the Agreement.

To the extent other provisions of your Agreement were tied to or reflected a February 13, 2006
retirement date, those provisions are changed so that May 31, 2006 (or another date mutually agreed
to in writing by you and CB&I) is instead the operative date.

Further, your Agreement for Consulting Services will not take effect until a day after you are no
longer employed by CB&I. However, as we have agreed, that Agreement for Consulting Services is
now being amended, through this letter agreement, such that it will last for four (4) years from
the day after you are no longer employed by CB&I, instead of two (2). As we have also agreed, in
the newly-added 3rd and 4th years of your consulting agreement, you will be
paid a non-refundable retainer equal to Twenty-Five Thousand Dollars ($25,000.00) each quarter of
the 3rd and 4th years. This Twenty-Five Thousand Dollar ($25,000.00)
quarterly amount for the 3rd and 4th years will also be applied to the
termination provisions of the Agreement for Consulting Services when calculating any lump-sum
payment due under those provisions which relates to those years. We are also hereby amending your
Agreement for Consulting Services to substitute Philip K. Asherman, President & Chief Executive
Officer (or his designee), in the place of former Chairman, President & Chief Executive Officer
Gerald M. Glenn in each place Mr. Glenn is mentioned in your Agreement for Consulting Services.

 

 

Mr. Richard E. Goodrich

April 28, 2006

Page Two

Other than the provisions we have specifically amended in this letter, all other provisions of the
Agreement and your Agreement for Consulting Services remain in effect.

If you agree to amend your Agreements consistent with this letter, please sign below and return
this document to me. If not, let’s discuss this matter.

Sincerely,

/s/ David P. Bordages

David P. Bordages

VP-Human Resources & Administration

Agreed:

	 	 	 
	/s/ Richard E. Goodrich

	 	 
	 
	 	 
	Richard E. Goodrich
	 	 
	 
	 	 
	 
	 	 
	April 28, 2006

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]