Document:

Exhibit 10.1

 

EIGHTH AMENDMENT

 

THIS
EIGHTH AMENDMENT (this “Amendment”) dated as of February 13, 2008 to the
Credit Agreement referenced below is by and among Advance America, Cash Advance Centers, Inc., a Delaware
corporation (the “Borrower”), the Guarantors identified on the signature
pages hereto (the “Guarantors”), the Lenders identified on the
signature pages hereto and Bank of America, N.A., as administrative agent
(in such capacity, the “Administrative Agent”).

 

W I T N E S S E T H

 

                WHEREAS, a revolving credit
facility has been extended to the Borrower pursuant to the Amended and Restated
Credit Agreement (as amended, modified and supplemented from time to time, the “Credit
Agreement”) dated as of July 16, 2004 among the Borrower, the
Guarantors, the Lenders identified therein and the Administrative Agent; and

 

                WHEREAS, the Borrower has
requested certain modifications to the Credit Agreement and the Required
Lenders have agreed to the requested modifications on the terms and conditions
set forth herein.

 

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

 

                1.             Defined Terms.  Capitalized terms used herein but not
otherwise defined herein shall have the meanings provided to such terms in the
Credit Agreement.

 

2.             Amendment. 
In Section 1.1 of the Credit Agreement, the definition of “Permitted
Stock Repurchase” is amended to read as follows:

 

“Permitted Stock Repurchase” “ means the
repurchase of Capital Stock of the Borrower in an aggregate amount of up to (i) prior
to the date of the Fifth Amendment to the Credit Agreement, $50 million and (ii) on
and after the date of the Fifth Amendment to the Credit Agreement, $150 million
(excluding any repurchases made prior to the date of the Fifth Amendment to the
Credit Agreement).

 

3.             Conditions Precedent.  This
Amendment shall be effective as of the date hereof upon satisfaction of each of
the following conditions:

 

(a)           execution of this Amendment by the Credit Parties and the
Required Lenders;

 

and

 

(b)           the
receipt by the Administrative Agent, for the account of each Lender that
executes this Amendment by February 6, 2008, an amendment fee equal to
five (5) basis points (0.05%) on such Lender’s Revolving Committed Amount.

 

                4.             Reaffirmation of Representations
and Warranties.  Each Credit Party
represents and warrants that the representations and warranties set forth in
the Credit Agreement and the other Credit Documents are true and correct in all
material respects as of the date hereof (except those that expressly relate to
an earlier period).

 

5.             Reaffirmation
of Guaranty.  Each Credit Party (a) acknowledges and consents to all of the
terms and conditions of this Amendment, (b) affirms all of its obligations
under the Credit Documents and (c) 

 

 

 

agrees that this Amendment and all documents executed in
connection herewith do not operate to reduce or discharge such Credit Party’s
obligations under the Credit Documents.

 

6.             Reaffirmation of Security
Interests.  Each Credit
Party (i) affirms that each of the
Liens granted in or pursuant to the Credit Documents are valid and subsisting
and (ii) agrees that this Amendment shall in no manner impair or otherwise
adversely effect any of the Liens granted in or pursuant to the Credit
Documents.

 

                7.             No Other Changes.  Except as modified hereby, all of the terms
and provisions of the Credit Documents (including schedules and exhibits
thereto) shall remain in full force and effect.

 

                8.             Counterparts; Facsimile Delivery.  This Amendment may be executed in any number
of counterparts, each of which when so executed and delivered shall be deemed
an original and it shall not be necessary in making proof of this Amendment to
produce or account for more than one such counterpart. Delivery of an executed
counterpart of this Amendment by facsimile shall be effective as an original.

 

                9.             Governing Law.  This Amendment shall be deemed to be a
contract made under, and for all purposes shall be construed in accordance
with, the laws of the State of North Carolina.

 

[Signature Pages Follow]

 

 

2

 

                IN WITNESS WHEREOF, each of the
parties hereto has caused a counterpart of this Eighth Amendment to be duly
executed and delivered as of the date first above written.

 

	
  BORROWER:

  
	
   

  
	
  ADVANCE
  AMERICA, CASH ADVANCE CENTERS, INC., a Delaware corporation

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Kenneth E. Compton

  	
   

  
	
  Name:

  	
  Kenneth
  E. Compton

  
	
  Title:

  	
  Chief
  Executive Officer and President

  
	
   

  	
   

  
	
  GUARANTORS:

  
	
   

  
	
  AARC, INC., a Delaware
  corporation

  
	
   

  	
   

  
	
  By:

  	
  /s/
  W. Thomas Newell

  	
   

  
	
  Name:

  	
  W. Thomas Newell

  
	
  Title:

  	
  President

  

 

ADVANCE AMERICA SERVICING
OF ARKANSAS, INC., a Delaware corporation

ADVANCE AMERICA SERVICING
OF INDIANA, INC., a Delaware corporation

ADVANCE AMERICA LEASING
SERVICES, INC., a Delaware corporation

AAIC, INC., a Delaware
corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF ALABAMA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF ALASKA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF ARIZONA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF ARKANSAS, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF CALIFORNIA, LLC,

a Delaware limited
liability company

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF COLORADO, LLC,

a Delaware limited
liability company

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF CONNECTICUT, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF DELAWARE, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF DISTRICT OF COLUMBIA, INC.,

a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF FLORIDA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF GEORGIA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF HAWAII, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF IDAHO, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF ILLINOIS, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF INDIANA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF IOWA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF KANSAS, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF KENTUCKY, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF LOUISIANA, LLC, a Delaware limited liability company

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF MAINE, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF MARYLAND, INC., a Delaware corporation

 

	
  By:

  	
  /s/
  Kenneth E. Compton

  
	
  Name:

  	
  Kenneth
  E. Compton

  
	
  Title:

  	
  Chief
  Executive Officer and President

  

 

[Signature Pages Continue]

 

 

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF MASSACHUSETTS, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF MICHIGAN, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF MINNESOTA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF MISSISSIPPI, LLC,

a Delaware limited
liability company

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF MISSOURI, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF MONTANA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF NEBRASKA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF NEVADA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF NEW HAMPSHIRE, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF NEW JERSEY, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF NEW MEXICO, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF NEW YORK, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF NORTH CAROLINA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF NORTH DAKOTA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF OHIO, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF OKLAHOMA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF OREGON, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF PENNSYLVANIA, LLC, a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF RHODE ISLAND, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF SOUTH CAROLINA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF SOUTH DAKOTA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF TENNESSEE, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF TEXAS, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF UTAH, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF VERMONT, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF VIRGINIA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF WASHINGTON, LLC,

a Delaware limited
liability company

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF WEST VIRGINIA, INC., a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF WISCONSIN, INC., a Delaware corporation

ADVANCE AMERICA, CASH ADVANCE
CENTERS OF WYOMING, INC., a Delaware corporation

ADVANCE AMERICA SERVICING
OF GEORGIA, INC., a Delaware corporation

MCKENZIE CHECK ADVANCE OF
ALABAMA, L.L.C., a Tennessee limited liability company

MCKENZIE CHECK ADVANCE OF
ARKANSAS, LLC, a Tennessee limited liability company

MCKENZIE CHECK ADVANCE OF
COLORADO, LLC, a Tennessee limited liability company

MCKENZIE CHECK ADVANCE OF
INDIANA, LLC, a Tennessee limited liability company

MCKENZIE CHECK ADVANCE OF
IOWA, L.L.C., a Tennessee limited liability company

MCKENZIE CHECK ADVANCE OF
KANSAS, LLC, a Tennessee limited liability company

MCKENZIE CHECK ADVANCE OF
MISSISSIPPI, LLC, a Tennessee limited liability company

MCKENZIE CHECK ADVANCE OF
NEBRASKA, LLC, a Tennessee limited liability company

MCKENZIE CHECK ADVANCE OF
NEW JERSEY, L.L.C., a Tennessee limited liability company

MCKENZIE CHECK ADVANCE OF
OHIO, LLC, a Tennessee limited liability company

MCKENZIE CHECK ADVANCE OF
OREGON, LLC, a Tennessee limited liability company

MCKENZIE CHECK ADVANCE OF
WASHINGTON, L.L.C., a Tennessee limited liability company

MCKENZIE CHECK ADVANCE OF WISCONSIN, LLC, a Tennessee limited liability
company

NCA OF MISSOURI, INC., a
Delaware corporation

NCAS OF DELAWARE, LLC, a
Delaware limited liability company

NCAS OF NEW JERSEY, LLC,
a Delaware limited liability company

 

	
  By:

  	
  /s/
  Kenneth E. Compton

  
	
  Name:

  	
  Kenneth
  E. Compton

  
	
  Title:

  	
  Chief
  Executive Officer and President

  

 

[Signature Pages Continue]

 

 

 

AA CHALLENGER, LLC, a
Delaware limited liability company

AA AIR, LLC, a Delaware
limited liability company

ADVANCE AMERICA
MONEY.COM, INC., a Delaware corporation

ACSO OF MICHIGAN, INC., a
Delaware corporation

NCA OF LOUISIANA, LLC, a
Delaware limited liability company

AA CANADA HOLDINGS, INC.,
a Delaware corporation

ADVANCE AMERICA, CASH
ADVANCE CENTERS OF PUERTO RICO, INC., a Delaware corporation

ADVANCE AMERICA
INDUSTRIAL LOAN SERVICES OF GEORGIA, INC., a Delaware corporation

 

	
  By:

  	
  /s/
  Kenneth E. Compton

  	
   

  
	
  Name:

  	
  Kenneth
  E. Compton

  	
   

  
	
  Title:

  	
  Chief
  Executive Officer and President

  	
   

  
	
   

  	
   

  	
   

  
	
  ACSO OF TEXAS, L.P., a
  Texas limited partnership

  
	
  ADVANCE AMERICA
  SERVICING OF TEXAS, L.P., a Texas limited partnership

  
	
   

  	
   

  	
   

  
	
  By:

  	
  ADVANCE AMERICA, CASH
  ADVANCE CENTERS OF TEXAS, INC.,

  
	
   

  	
  a Delaware corporation
  and its general partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Kenneth E. Compton

  	
   

  
	
   

  	
  Name:

  	
  Kenneth
  E. Compton

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer and President

  
	
   

  	
   

  	
   

  
	
  W.P.S. SYSTEMS, LTD. OF
  NEW ENGLAND, a Rhode Island corporation

  
	
   

  	
   

  	
   

  
	
  By:

  	
  ADVANCE AMERICA, CASH
  ADVANCE CENTERS OF RHODE ISLAND, INC.,

  
	
   

  	
  a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Kenneth E. Compton

  	
   

  
	
   

  	
  Name:

  	
  Kenneth
  E. Compton

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer and President

  
						

 

[Signature Pages Continue]

 

 

 

	
  ADMINISTRATIVE

  	
   

  
	
  AGENT:

  	
  BANK
  OF AMERICA, N.A., as Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Anne M. Zeschke

  
	
   

  	
  Name:
  

  	
  Anne
  M. Zeschke

  
	
   

  	
  Title:
  

  	
  Assistant
  Vice President

  
	
   

  	
   

  	
   

  
	
  LENDERS:

  	
  BANK
  OF AMERICA, N.A., as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Scott K. Mitchell

  
	
   

  	
  Name:

  	
  Scott
  K. Mitchell

  
	
   

  	
  Title:
  

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  WACHOVIA
  BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  David S. Sampson

  
	
   

  	
  Name:

  	
  David
  S. Sampson

  
	
   

  	
  Title:
  

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  US
  BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Juli K. Van Hook

  
	
   

  	
  Name:

  	
  Juli
  K. Van Hook

  
	
   

  	
  Title:
  

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS
  FARGO BANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Kevin Dowdle

  
	
   

  	
  Name:

  	
  Kevin
  Dowdle

  
	
   

  	
  Title:
  

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  NATIONAL
  CITY BANK

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Michael J. Durbin

  
	
   

  	
  Name:

  	
  Michael
  J. Durbin

  
	
   

  	
  Title:
  

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  NATIONAL
  BANK OF SOUTH CAROLINA

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Lam B. Britton

  
	
   

  	
  Name:

  	
  Lam
  B. Britton

  
	
   

  	
  Title:
  

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  CAROLINA
  FIRST BANK

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Charles D. Chamberlain

  
	
   

  	
  Name:

  	
  Charles
  D. Chamberlain

  
	
   

  	
  Title:
  

  	
  Executive
  Vice President

  

 

[Signature Pages Continue]

 

 

 

 

	
   

  	
  FIRST TENNESSEE BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/ Rotcher Watkins

  
	
   

  	
  Name:

  	
  Rotcher
  Watkins

  
	
   

  	
  Title:
  

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  BRANCH
  BANKING AND TRUST COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Stan Parker

  
	
   

  	
  Name:

  	
  Stan
  Parker

  
	
   

  	
  Title:
  

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  TEXAS
  CAPITAL BANK, NA

  
	
   

  	
   

  	
   

  
	
   

  	
  By:
  

  	
  /s/
  Jason K. Matthews

  
	
   

  	
  Name:

  	
  Jason
  K. Matthews

  
	
   

  	
  Title:
  

  	
  Vice
  PresidentExhibit 10.1

 

FOURTH
AMENDMENT TO

HADDRILL EMPLOYMENT AGREEMENT

 

This Fourth Amendment to the Employment
Agreement (the “Fourth Amendment”) is made and entered into as of February 
13, 2008 (the “Effective Date”), by and between Bally Technologies, Inc.,
a Nevada corporation (the “Company”), and Richard Haddrill (“Haddrill”).

 

WHEREAS, the Company and Haddrill are parties
to that certain Employment Agreement dated as of June 30, 2004, as amended
on December 22, 2004, June 13, 2005 and June 20, 2006 (as amended,
the “Employment Agreement”) pursuant to which Haddrill is employed as
the Company’s Chief Executive Officer;

 

WHEREAS, the Employment Agreement is
scheduled to terminate on January 1, 2009 (the “Original Expiration
Date”); and

 

WHEREAS, the Company and Haddrill desire to
further amend the Employment Agreement to grant additional non-statutory stock
options and restricted stock units and to provide for the automatic extension
of the term of the Employment Agreement beyond January 1, 2009, in each
case, in accordance with and subject to the terms and conditions of this Fourth
Amendment.

 

NOW THEREFORE, on the basis of the foregoing
premises and in consideration of the mutual covenants and agreements contained
herein, the parties hereto agree as follows:

 

1.                                       The
Company and Haddrill agree that Section 3 of the Employment Agreement is
hereby deleted in its entirety and replaced with the following:

 

“3.                                 Term. The term
of this Agreement will commence on a mutually agreeable date (the “Commencement
Date”), which shall not be later than October 1, 2004. The term of
this Agreement and Haddrill’s employment by the Company hereunder will continue,
unless earlier terminated pursuant to Section 7 of this Agreement, through
January 1, 2009 and shall thereafter be automatically renewed for an
indefinite number of one (1) year periods unless either party gives
written notice to the other party of its intention not to renew at least ninety
(90) days prior to the expiration of said term.”

 

2.                                       During
the term of the Employment Agreement, (i) Haddrill will continue to receive
the compensation and benefits currently provided to him on the terms and
conditions set forth in Sections 4(a) and (b) of the Employment Agreement,
(ii) Haddrill’s base salary will remain at $998,000 per year and (iii) Haddrill
will continue to be entitled to five weeks of vacation time per year.

 

3.                                       The
Company shall grant Haddrill additional non-statutory stock options (the “Additional
Options”) to acquire 50,000 shares of the Company’s common stock under the
Company’s Amended and Restated 2001 Long Term Incentive Plan (the “Plan”).
The grant date of the Additional Options shall be February 22, 2008. The
Additional Options shall be granted at an exercise price per share equal to the
closing price of the stock on the grant date. The Additional Options shall vest
and be subject to the terms and conditions set forth in the Plan and on Schedule A-2.

 

1

 

4.                                       The
Company shall grant Haddrill a number of restricted stock units under the Plan
(the “Additional Restricted Stock Units”) having a value equal to $1 million
dollars, as calculated in accordance with Schedule B-2 hereto. The grant
date of the Additional Restricted Stock Units shall be February 22, 2008. The
Additional Restricted Stock Units shall vest and be subject to the terms and
conditions set forth in the Plan and on Schedule B-2 hereto.

 

5.                                       Except
as expressly modified by this Fourth Amendment, the Employment Agreement shall
remain unchanged and shall remain in full force and effect.

 

 [signatures on next page]

 

2

 

IN WITNESS WHEREOF, the Company and Haddrill
have duly executed this Fourth Amendment as of the date first above written.

 

 

	
   

  	
  BALLY TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Richard Haddrill

  
					

 

3

 

Schedule A-2

 

ADDITIONAL
OPTIONS

 

1.                                       The Additional
Options shall vest as follows:  (i) 16,667
shares shall vest on June 30, 2009, (ii) an additional 16,667 shares shall
vest on December 31, 2009, and (iii) the final 16,666 shares shall
vest on June 30, 2010, in each case, so long as Haddrill remains in
continuous service with the Company through each such date.

 

2.                                       If Haddrill’s
employment with the Company is terminated under paragraphs 7(b) or 7(c) of
the Employment Agreement, and such termination of employment occurs after January 1,
2009, in addition to the other compensation and benefits provided under the
Employment Agreement, the vesting of the Additional Options shall be pro-rated
through the month in which the date of termination occurs (taking into account
that portion of the award that has already vested in accordance with its
terms), based upon the number of full months between January 1, 2009, and
the date of Haddrill’s termination of employment divided by 18 months.

 

3.                                       In addition to
the above, notwithstanding any provision of the Employment Agreement, or the
Plan to the contrary, in the event of a Change of Control (as defined in the Employment
Agreement): (i) if such Change of Control is consummated on or prior to January 1,
2009, and, within one year following such Change of Control Haddrill’s service with
the Company (or any successor) is terminated under paragraphs 7(b) or 7(c) of
the Employment Agreement, the Additional Options shall become immediately and
fully vested and exercisable effective as of immediately prior to the date of
such termination of service and (ii) if such Change of Control is
consummated after January 1, 2009, the Additional Options shall become
immediately and fully vested and exercisable effective as of immediately prior
to such Change of Control.

 

4.                                       Once the Additional
Options become vested and exercisable hereunder, they shall remain exercisable
until the seventh anniversary of the date of grant thereof without regard to
whether Haddrill remains in continuous service with the Company through such
date.

 

5.                                       Except as
described in this Schedule A-2, upon a termination of Haddrill’s service with
the Company (or any successor) for any reason, the unvested portion of the Additional
Options at the time of such termination of service (after giving effect to the
accelerated vesting, if any, described in this Schedule A-2, if any) shall
terminate effective as of the date of termination.

 

4

 

Schedule B-2

 

ADDITIONAL
RESTRICTED STOCK UNITS

 

1.                                       The number of
shares of common stock subject to the Additional Restricted Stock Units shall
be determined by dividing $1 million dollars by the average per share
closing price of the Company’s common stock on the stock exchange in which the
stock is principally traded for the 20 business days immediately prior to the
date of the grant.

 

2.                                       The Additional
Restricted Stock Units shall vest as follows:  (i) 50% of the units shall vest on June 30,
2009 and (ii) the remaining 50% of the units shall vest on January 1,
2010, in each case, so long as Haddrill remains in continuous service with the
Company through each such date.

 

3.                                       If Haddrill’s
employment with the Company is terminated under paragraphs 7(b) or 7(c) of
the Employment Agreement, and such termination occurs after January 1,
2009, in addition to the other compensation and benefits provided under the
Employment Agreement, the vesting of the Additional Restricted Stock Units will
accelerate in full as of the termination date.

 

4.                                       In addition to
the above, notwithstanding any provision of the Employment Agreement, or the
Plan to the contrary, in the event of a Change of Control (as defined in the
Employment Agreement): (i) if such Change of Control is consummated on or
prior to January 1, 2009, and, within one year following such Change of
Control Haddrill’s service with the Company (or any successor) is terminated
under paragraphs 7(b) or 7(c) of the Employment Agreement, the
Additional Restricted Stock Units shall become immediately and fully vested and
exercisable effective as of immediately prior to the date of such termination
of service and (ii) if such Change of Control is consummated after January 1,
2009, the Additional Restricted Stock Units shall become immediately and fully
vested and exercisable effective as of immediately prior to such Change of
Control.

 

5.                                       Each vested
Additional Restricted Stock Unit represents Haddrill’s right to receive one
share of the Company’s common stock on the applicable vesting date (subject to
the terms and conditions of the Plan, including the satisfaction of any tax
withholding obligations).

 

6.                                       Except as
described in this Schedule B-2, upon a termination of Haddrill’s service
with the Company (or any successor) for any reason, the unvested portion of the
Additional Restricted Stock Units at the time of such termination of service
(after giving effect to the accelerated vesting, if any, described in this Schedule B-2,
if any) shall be forfeited effective as of the date of termination.

 

5

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