Document:

Registration Rights Agreement, dated as of Nov. 3, 2006

 Exhibit 10.4 
 EXHIBIT C 
 REGISTRATION RIGHTS AGREEMENT 
 This Registration Rights Agreement (this “Agreement”) is made and entered into as of November [    ], 2006, by and
among Veri-Tek International, Corp., a Michigan corporation (the “Company”), and the investors signatory hereto (each a “Investor” and collectively, the “Investors”). 
 This Agreement is made pursuant to the Securities Purchase Agreement, dated as of the date hereof among the Company and the Investors (the
“Purchase Agreement”). 
 The Company and the Investors hereby agree as follows: 
 1. Definitions. Capitalized terms used and not otherwise defined herein that are defined in the Purchase Agreement will have the meanings given
such terms in the Purchase Agreement. As used in this Agreement, the following terms have the respective meanings set forth in this Section 1: 
 “Advice” has the meaning set forth in Section 6(d). 
 “Effective Date” means, as to the
Registration Statement, the date on which such Registration Statement is first declared effective by the Commission. 
 “Effectiveness Date” means the earlier of: (i) the 90th calendar day following the
Closing Date; provided, that, if the Commission reviews and has written comments to the filed Registration Statement that would require the filing of a pre-effective amendment thereto with the Commission, then the Effectiveness Date under
this clause (i) shall be the 150th calendar day following the Closing Date, and (ii) the fifth Trading Day
following the date on which the Company is notified by the Commission that the Registration Statement will not be reviewed or is no longer subject to further review and comments. 
 “Effectiveness Period” has the meaning set forth in Section 2(a). 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Filing Date” means the 45th calendar day following the Closing Date. 
 “Holder” or “Holders” means the
holder or holders, as the case may be, from time to time of Registrable Securities. 
 “Indemnified Party” has the meaning
set forth in Section 5(c). 
 “Indemnifying Party” has the meaning set forth in Section 5(c). 

 “Losses” has the meaning set forth in Section 5(a). 
 “New York Courts” means the state and federal courts sitting in the City of New York, Borough of Manhattan. 
 “Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened. 
 “Prospectus” means the prospectus included in the
Registration Statement (including, without limitation, a prospectus that includes any information previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated under the Securities
Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any portion of the Registrable Securities covered by the Registration Statement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference in such Prospectus. 
 “Registrable Securities” means: (i) the Shares, (ii) the Warrant Shares, (iii) any shares of Common Stock issuable upon the exercise of warrants issued to Roth Capital Partners, LLC as compensation in
connection with the financing that is the subject of the Purchase Agreement, and (iv) any securities issued or issuable upon any stock split, dividend or other distribution, recapitalization or similar event, or any conversion price adjustment
with respect to any of the securities referenced in (i), (ii), or (iii) above. 
 “Registration Statement” means the
registration statement required to be filed in accordance with Section 2(a), including the Prospectus, amendments and supplements to such registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto,
and all material incorporated by reference or deemed to be incorporated by reference therein. 
 “Rule 144” means Rule 144
promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 
 “Rule 415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such Rule. 
 “Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as
such Rule. 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “Shares” means the shares of Common Stock issued or issuable to the Investors pursuant to the Purchase Agreement. 
  

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 “Warrants” means the Common Stock purchase warrants issued or issuable to the Investors
pursuant to the Purchase Agreement and to Roth Capital Partners, LLC in accordance with the terms of the engagement or similar agreements between the Company and such placement agent. 
 “Warrant Shares” means the shares of Common Stock issued or issuable upon exercise of the Warrants. 
 2. Registration. 
 (a) On or prior to
the Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale of all Registrable Securities not already covered by an existing and effective registration statement for an offering to be made on
a continuous basis pursuant to Rule 415, on Form S-3 (or on such other form appropriate for such purpose). Such Registration Statement shall contain (except if otherwise required pursuant to written comments received from the Commission upon a
review of such Registration Statement) the “Plan of Distribution” attached hereto as Annex A. The Company shall cause such Registration Statement to be declared effective under the Securities Act as to all Registrable Securities
permitted by the Commission to be included therein (by reference to written comments which are received to the filed Registration Statement) as soon as possible but, in any event, no later than its Effectiveness Date, and shall use its reasonable
best efforts to keep the Registration Statement continuously effective under the Securities Act until the date which is the earliest of (i) five years after its Effective Date, (ii) such time as all of the Registrable Securities covered by
such Registration Statement have been publicly sold by the Holders, or (iii) such time as all of the Registrable Securities covered by such Registration Statement may be sold by the Holders pursuant to Rule 144(k) as determined by the counsel
to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Company’s transfer agent and the affected Holders (the “Effectiveness Period”). By 5:00 p.m. (New York City time) on the
Trading Day immediately following the Effective Date, the Company shall file with the Commission in accordance with Rule 424 under the Securities Act the final prospectus to be used in connection with sales pursuant to such Registration Statement
(whether or not such filing is technically required under such Rule). Notwithstanding anything to the contrary contained herein (including the provisions of Section 2(b) below), the Company shall not be required to file or amend a Registration
Statement to constitute a primary offering of securities by the Company. 
 (b) If: (i) the Registration Statement is not filed on or
prior to its Filing Date (if the Company files the Registration Statement without affording the Holders the opportunity to review and comment on the same as required by Section 3(a) hereof, the Company shall not be deemed to have satisfied this
clause (i)), or (ii) the Registration Statement is not declared effective by the Commission on or prior to its required Effectiveness Date or if by the Trading Day immediately following the Effective Date the Company shall not have filed a
“final” prospectus for the Registration Statement with the Commission under Rule 424(b) (whether or not such a prospectus is actually required by such Rule), or (iii) after its Effective Date, without regard for the reason thereunder
or efforts therefor, such Registration Statement ceases for any reason to be effective and available to the Holders as to all Registrable Securities to which it is required to cover at any time prior to the expiration of its Effectiveness Period for
more than an aggregate of 30 Trading Days during any 12-month period (which need not be consecutive) (any 

  

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such failure or breach being referred to as an “Event,” and for purposes of clauses (i) or (ii) the date on which such Event
occurs, or for purposes of clause (iii) the date which such 30 Trading Day-period is exceeded, being referred to as “Event Date”), then in addition to any other rights the Holders may have hereunder or under applicable law: on
the last day of each 30-day period after each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company shall pay to each Holder an amount in cash, as partial liquidated damages
and not as a penalty, equal to 1.0% of the aggregate Investment Amount paid by such Holder for Shares pursuant to the Purchase Agreement. The parties agree that (1) the Company will not be liable for liquidated damages under this Agreement
with respect to any Warrants or Warrant Shares and (2) in no event will the Company be liable for liquidated damages under this Agreement in excess of 1.0% of the aggregate Investment Amount of the Holders in any 30-day period, and (3) the
maximum aggregate liquidated damages payable to a Holder under this Agreement shall be five percent (5%) of the aggregate Investment Amount paid by such Holder pursuant to the Purchase Agreement. The partial liquidated damages pursuant to
the terms hereof shall apply on a daily pro-rata basis for any portion of each 30-day period prior to the cure of an Event, and shall cease to accrue (unless earlier cured) upon the expiration of the Effectiveness Period. 
 (c) Each Holder agrees to furnish to the Company a completed Questionnaire in the form attached to this Agreement as Annex B (a “Selling
Holder Questionnaire”). The Company shall not be required to include the Registrable Securities of a Holder in the Registration Statement and shall not be required to pay any liquidated or other damages under Section 2(b) to any Holder
who fails to furnish to the Company a fully completed Selling Holder Questionnaire at least four Trading Days prior to the Filing Date (subject to the requirements set forth in Section 3(a)). 
 3. Registration Procedures. 
 In
connection with the Company’s registration obligations hereunder, the Company shall: 
 (a) Not less than three Trading Days prior to the
filing of the Registration Statement or any related Prospectus or any amendment or supplement thereto, the Company shall furnish to each Holder copies of the “Selling Stockholders” section of such document, the “Plan of
Distribution” and any risk factor contained in such document that addresses specifically this transaction or the Selling Stockholders, as proposed to be filed which documents will be subject to the review of such Holder. The Company shall not
file the Registration Statement, any Prospectus or any amendments or supplements thereto in which the “Selling Stockholder” section thereof differs from the disclosure received from a Holder in its Selling Holder Questionnaire (as amended
or supplemented). 
 (b) (i) Prepare and file with the Commission such amendments, including post-effective amendments, to the Registration
Statement and the Prospectus used in connection therewith as may be necessary to keep such Registration Statement continuously effective as to the applicable Registrable Securities for its Effectiveness Period and prepare and file with the
Commission such additional Registration Statements in order to register for resale under the Securities Act all of the Registrable Securities; (ii) cause the related Prospectus to be amended or 

  

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supplemented by any required Prospectus supplement, and as so supplemented or amended to be filed pursuant to Rule 424; (iii) respond as promptly as
reasonably possible to any comments received from the Commission with respect to the Registration Statement or any amendment thereto and, as promptly as reasonably possible provide the Holders true and complete copies of all correspondence from and
to the Commission relating to such Registration Statement that would not result in the disclosure to the Holders of material and non-public information concerning the Company; and (iv) comply in all material respects with the provisions of the
Securities Act and the Exchange Act with respect to the Registration Statement and the disposition of all Registrable Securities covered by such Registration Statement. 
 (c) Notify the Holders as promptly as reasonably possible (and, in the case of (i)(A) below, not less than three Trading Days prior to such filing and, in the case of (v) below, not less than three Trading Days
prior to the financial statements in the Registration Statement becoming ineligible for inclusion therein) and (if requested by any such Person) confirm such notice in writing no later than one Trading Day following the day (i)(A) when a Prospectus
or any Prospectus supplement or post-effective amendment to the Registration Statement is proposed to be filed; (B) when the Commission notifies the Company whether there will be a “review” of such Registration Statement and whenever
the Commission comments in writing on such Registration Statement (the Company shall provide true and complete copies thereof and all written responses thereto to each of the Holders that pertain to the Holders as a Selling Stockholder or to the
Plan of Distribution, but not information which the Company believes would constitute material and non-public information); and (C) with respect to the Registration Statement or any post-effective amendment, when the same has become effective;
(ii) of any request by the Commission or any other Federal or state governmental authority for amendments or supplements to the Registration Statement or Prospectus or for additional information; (iii) of the issuance by the Commission of
any stop order suspending the effectiveness of the Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings for that purpose; (iv) of the receipt by the Company of any notification with
respect to the suspension of the qualification or exemption from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding for such purpose; and (v) of the occurrence of
any event or passage of time that makes the financial statements included in the Registration Statement ineligible for inclusion therein or any statement made in such Registration Statement or Prospectus or any document incorporated or deemed to be
incorporated therein by reference untrue in any material respect or that requires any revisions to such Registration Statement, Prospectus or other documents so that, in the case of such Registration Statement or the Prospectus, as the case may be,
it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

 (d) Use its reasonable best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order suspending the
effectiveness of the Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable Securities for sale in any jurisdiction, at the earliest practicable moment. 
 (e) Furnish to each Holder, without charge, at least one conformed copy of the Registration Statement and each amendment thereto and all exhibits to the
extent requested by such Person (including those previously furnished) promptly after the filing of such documents with the Commission. 
  

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 (f) Promptly deliver to each Holder, without charge, as many copies of each Prospectus or Prospectuses
(including each form of prospectus) and each amendment or supplement thereto as such Persons may reasonably request. The Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by each of the selling Holders in
connection with the offering and sale of the Registrable Securities covered by such Prospectus and any amendment or supplement thereto. 
 (g) Prior to any public offering of Registrable Securities, register or qualify such Registrable Securities for offer and sale under the securities or Blue Sky laws of all jurisdictions within the United States, to keep each such
registration or qualification (or exemption therefrom) effective during the Effectiveness Period and to do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered
by the Registration Statement. 
 (h) Cooperate with the Holders to facilitate the timely preparation and delivery of certificates
representing Registrable Securities to be delivered to a transferee pursuant to the Registration Statement, which certificates shall be free, to the extent permitted by the Purchase Agreement, of all restrictive legends, and to enable such
Registrable Securities to be in such denominations and registered in such names as any such Holders may request. 
 (i) Upon the occurrence
of any event contemplated by Section 3(c)(v), as promptly as reasonably possible, prepare a supplement or amendment, including a post-effective amendment, to the Registration Statement or a supplement to the related Prospectus or any document
incorporated or deemed to be incorporated therein by reference, and file any other required document so that, as thereafter delivered, neither the Registration Statement nor the Prospectus will contain an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. 
 4. Registration Expenses. All fees and expenses incident to the performance of or compliance with this Agreement by the Company shall be borne by
the Company whether or not any Registrable Securities are sold pursuant to the Registration Statement. The fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees
(including, without limitation, fees and expenses (A) with respect to filings required to be made with any Trading Market on which the Common Stock is then listed for trading, and (B) in compliance with applicable state securities or Blue
Sky laws), (ii) printing expenses (including, without limitation, expenses of printing certificates for Registrable Securities and of printing prospectuses if the printing of prospectuses is reasonably requested by the holders of a majority of
the Registrable Securities included in the Registration Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company, (v) Securities Act liability insurance, if the Company so
desires such insurance, and (vi) fees and expenses of all other Persons retained by the Company in connection with the consummation of the transactions contemplated by this Agreement. In addition, the Company shall be responsible for all of its
internal expenses incurred in connection with the consummation 

  

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of the transactions contemplated by this Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal
or accounting duties), the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any securities exchange as required hereunder. 
 5. Indemnification. 
 (a)
Indemnification by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, the officers, directors, agents, investment advisors, partners, members and employees of each of
them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act) and the officers, directors, agents and employees of each such controlling Person, to the fullest
extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including, without limitation, reasonable costs of preparation and reasonable attorneys’ fees) and expenses (collectively,
“Losses”), as incurred, arising out of or relating to any untrue or alleged untrue statement of a material fact contained in the Registration Statement, any Prospectus or any form of prospectus or in any amendment or supplement
thereto or in any preliminary prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case of any Prospectus or form of
prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading, except to the extent, but only to the extent, that (1) such untrue statements or omissions are based solely upon information regarding
such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities and was reviewed
and expressly approved in writing by such Holder expressly for use in the Registration Statement, such Prospectus or such form of Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto
for this purpose) or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in writing that the
Prospectus is outdated or defective and prior to the receipt by such Holder of an Advice or an amended or supplemented Prospectus, but only if and to the extent that following the receipt of the Advice or the amended or supplemented Prospectus the
misstatement or omission giving rise to such Loss would have been corrected. The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding of which the Company is aware in connection with the transactions
contemplated by this Agreement. 
 (b) Indemnification by Holders. Each Holder shall, severally and not jointly, indemnify and hold
harmless the Company, its directors, officers, agents and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, agents or
employees of such controlling Persons, to the fullest extent permitted by applicable law, from and against all Losses, as incurred, arising solely out of or based solely upon: (x) such Holder’s failure to comply with the prospectus
delivery requirements of the Securities Act or (y) any untrue statement of a material fact contained in the Registration Statement, any Prospectus, or any form of prospectus, or in any amendment or supplement thereto, or arising solely out of
or based solely upon any omission of a material fact required to be stated therein or necessary to make the 

  

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statements therein not misleading to the extent, but only to the extent that, (1) such untrue statements or omissions are based solely upon information
regarding such Holder furnished in writing to the Company by such Holder expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use in the Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose), such Prospectus or such form of Prospectus or in any
amendment or supplement thereto or (2) in the case of an occurrence of an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective Prospectus after the Company has notified such Holder in
writing that the Prospectus is outdated or defective and prior to the receipt by such Holder of an Advice or an amended or supplemented Prospectus, but only if and to the extent that following the receipt of the Advice or the amended or supplemented
Prospectus the misstatement or omission giving rise to such Loss would have been corrected. In no event shall the liability of any selling Holder hereunder be greater in amount than the dollar amount of the net proceeds received by such Holder upon
the sale of the Registrable Securities giving rise to such indemnification obligation. 
 (c) Conduct of Indemnification Proceedings.
If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder (an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the
“Indemnifying Party”) in writing, and the Indemnifying Party shall assume the defense thereof, including the employment of counsel (one law firm) reasonably satisfactory to the Indemnified Party and the payment of all fees and
expenses incurred in connection with defense thereof; provided, that the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations or liabilities pursuant to this Agreement, except (and only) to
the extent that it shall be finally determined by a court of competent jurisdiction (which determination is not subject to appeal or further review) that such failure shall have proximately and materially adversely prejudiced the Indemnifying Party.

 An Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in writing to pay such fees and expenses; (2) the Indemnifying Party shall have failed
promptly to assume the defense of such Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3) the named parties to any such Proceeding (including any impleaded parties) include both
such Indemnified Party and the Indemnifying Party, and such Indemnified Party shall have been advised by counsel that a conflict of interest is likely to exist if the same counsel were to represent such Indemnified Party and the Indemnifying Party
(in which case, if such Indemnified Party notifies the Indemnifying Party in writing that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to assume the defense thereof
and such counsel (one law firm) shall be at the expense of the Indemnifying Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which consent shall not be unreasonably
withheld. No Indemnifying Party shall, without the prior written consent of the Indemnified Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes an unconditional
release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding. 
  

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 All fees and expenses of the Indemnified Party (including reasonable fees and expenses to the extent
incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section) shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the
Indemnifying Party (provided, that the Indemnifying Party may require such Indemnified Party to undertake to reimburse all such fees and expenses to the extent it is finally judicially determined that such Indemnified Party is not entitled to
indemnification hereunder). 
 (d) Contribution. If a claim for indemnification under Section 5(a) or 5(b) is unavailable to an
Indemnified Party (by reason of public policy or otherwise), then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Losses, in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions, statements or omissions that resulted in such Losses as well as any other relevant equitable considerations.
The relative fault of such Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including any untrue or alleged untrue statement of a material fact or omission or alleged
omission of a material fact, has been taken or made by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge, access to information and opportunity to correct or
prevent such action, statement or omission. The amount paid or payable by a party as a result of any Losses shall be deemed to include, subject to the limitations set forth in Section 5(c), any reasonable attorneys’ or other reasonable
fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance
with its terms. 
 The parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were
determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately preceding paragraph. Notwithstanding the provisions of this Section 5(d), no
Holder shall be required to contribute, in the aggregate, any amount in excess of the amount by which the proceeds actually received by such Holder from the sale of the Registrable Securities subject to the Proceeding exceeds the amount of any
damages that such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. 
 The indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have to the Indemnified Parties. 
 6. Miscellaneous. 
 (a)
Remedies. In the event of a breach by the Company or by a Holder, of any of their obligations under this Agreement, each Holder or the Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under
this Agreement, 

  

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including recovery of damages, will be entitled to specific performance of its rights under this Agreement. The Company and each Holder agree that monetary
damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such
breach, it shall waive the defense that a remedy at law would be adequate. 
 (b) No Piggyback on Registrations. Neither the Company
nor any of its security holders (other than the Holders in such capacity pursuant hereto) may include securities of the Company in the Registration Statement other than the Registrable Securities, and the Company shall not during the Effectiveness
Period enter into any agreement providing any such right to any of its security holders. 
 (c) Compliance. Each Holder covenants and
agrees that it will comply with the prospectus delivery requirements of the Securities Act as applicable to it in connection with sales of Registrable Securities pursuant to the Registration Statement. 
 (d) Discontinued Disposition. Each Holder agrees by its acquisition of such Registrable Securities that, upon receipt of a notice from the Company
of the occurrence of any event of the kind described in Section 3(c), such Holder will forthwith discontinue disposition of such Registrable Securities under the Registration Statement until such Holder’s receipt of the copies of the
supplemented Prospectus and/or amended Registration Statement or until it is advised in writing (the “Advice”) by the Company that the use of the applicable Prospectus may be resumed, and, in either case, has received copies of any
additional or supplemental filings that are incorporated or deemed to be incorporated by reference in such Prospectus or Registration Statement. The Company may provide appropriate stop orders to enforce the provisions of this paragraph. 

(e) Piggy-Back Registrations. If at any time during the Effectiveness Period there is not an effective Registration Statement covering all of
the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement relating to an offering for its own account or the account of others under the Securities Act of any of its equity
securities, other than on Form S-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely in connection with any acquisition of any entity or business or equity
securities issuable in connection with stock option or other employee benefit plans, then the Company shall send to each Holder written notice of such determination and, if within fifteen calendar days after receipt of such notice, any such Holder
shall so request in writing, the Company shall include in such registration statement all or any part of such Registrable Securities such holder requests to be registered that are not then registered on an effective Registration Statement, subject
to customary underwriter cutbacks applicable to all holders of registration rights. 
 (f) Amendments and Waivers. The provisions of
this Agreement, including the provisions of this Section 6(f), may not be amended, modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by
the Company and the Holders of no less than a majority in interest of the then outstanding Registrable Securities. Notwithstanding the foregoing, a waiver or consent 

  

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to depart from the provisions hereof with respect to a matter that relates exclusively to the rights of certain Holders and that does not directly or
indirectly affect the rights of other Holders may be given by Holders to which such waiver or consent relates; provided that this provisions of this sentence may not be amended except in accordance with the provisions of the immediately preceding
sentence. 
 (g) Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile (provided the sender receives a machine-generated confirmation of successful
transmission) at the facsimile number specified in this Section prior to 6:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section on a day that is not a Trading Day or later than 6:30 p.m. (New York City time) on any Trading Day, (c) the Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight
courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as follows: 
  

			
	If to the Company:	  	Veri-Tek International, Corp.
		  	50120 Pontiac Trail
		  	Wixom, Michigan 48393
		  	Attn: Chief Executive Officer
		  	Facsimile: (248) 560-2000
		
	With a copy to:	  	Foley & Lardner LLP
		  	500 Woodward Avenue, Suite 2700
		  	Detroit, Michigan 48226
		  	Attn: Patrick Daugherty
		  	Facsimile: (313) 234-2800
		
	If to a Investor:	  	To the address set forth under such Investor’s name on the signature pages hereto.
	
	If to any other Person who is then the registered Holder:
		
		  	To the address of such Holder as it appears in the stock transfer books of the Company

 or such other address as may be designated in writing hereafter, in the same manner, by such Person. 

(h) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of
the parties and shall inure to the benefit of each Holder. The Company may not assign its rights or obligations hereunder without the prior written consent of each Holder. Each Holder may assign their respective rights hereunder in the manner and to
the Persons as permitted under the Purchase Agreement. 
  

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 (i) Execution and Counterparts. This Agreement may be executed in any number of counterparts, each
of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid
binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof. 
 (j) Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and
construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all Proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Agreement (whether brought against a party hereto or its respective Affiliates, employees or agents) will be commenced in the New York Courts. Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any Proceeding,
any claim that it is not personally subject to the jurisdiction of any New York Court, or that such Proceeding has been commenced in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal service of process and
consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby
irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any Proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If either party shall commence a
Proceeding to enforce any provisions of this Agreement, then the prevailing party in such Proceeding shall be reimbursed by the other party for its attorney’s fees and other costs and expenses incurred with the investigation, preparation and
prosecution of such Proceeding. 
 (k) Cumulative Remedies. The remedies provided herein are cumulative and not exclusive of any
remedies provided by law. 
 (l) Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated,
and the parties hereto shall use their reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and
declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

(m) Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

  

 12 

 (n) Independent Nature of Investors’ Obligations and Rights. The obligations of each Investor
under this Agreement are several and not joint with the obligations of each other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor under this Agreement. Nothing contained herein
or in any Transaction Document, and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the
Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement or any other Transaction Document. Each Investor acknowledges that no other Investor will be acting as agent
of such Investor in enforcing its rights under this Agreement. Each Investor shall be entitled to independently protect and enforce its rights, including without limitation the rights arising out of this Agreement, and it shall not be necessary for
any other Investor to be joined as an additional party in any Proceeding for such purpose. The Company acknowledges that each of the Investors has been provided with the same Registration Rights Agreement for the purpose of closing a transaction
with multiple Investors and not because it was required or requested to do so by any Investor. 
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 SIGNATURE PAGES TO FOLLOW] 
  

 13 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

			
	VERI-TEK INTERNATIONAL, CORP.
		
	By:	 	  

	Name:	 	
	Title:	 	

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 
 SIGNATURE PAGES OF INVESTORS TO FOLLOW] 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

			
	NAME OF INVESTING ENTITY
	
	Sunrise Equity Partners, L.P.
		
	By:	 	 /s/ Marilyn Adler

	Name:	 	Marilyn Adler
	Title:	 	Manager
	
	ADDRESS FOR NOTICE
		
	c/o:	 	Sunrise Equity Partners, L.P.
	Street:	 	641 Lexington Avenue, 25th Floor
	City/State/Zip:	 	New York, NY 10022
	Attention:	 	Ms. Marilyn Adler
	Tel:	 	(212) 421-1616
	Fax:	 	(212) 750-7277
	Email:	 	marilyna@sunrisecorp.com

  

 15 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

			
	NAME OF INVESTING ENTITY
	
	Barrington Investors, L.P.
		
	By:	 	 /s/ Mike Crawford

	Name:	 	Mike Crawford
	Title:	 	Authorized Agent
	
	ADDRESS FOR NOTICE
		
	c/o:	 	Barrington Investors
	Street:	 	2001 Wilshire Blvd., Suite 401
	City/State/Zip:	 	Santa Monica, CA 90403
	Attention:	 	Jill Braden
	Tel:	 	(310) 264-4844 x2
	Fax:	 	(310) 264-4847
	Email:	 	jill@barrpart.com

  

 16 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

			
	NAME OF INVESTING ENTITY
	
	 Barrington Partners,
 A California
Limited Partnership

		
	By:	 	 /s/ Mike Crawford

	Name:	 	Mike Crawford
	Title:	 	Authorized Agent
	
	ADDRESS FOR NOTICE
		
	c/o:	 	Barrington Partners
	Street:	 	2001 Wilshire Blvd., Suite 401
	City/State/Zip:	 	Santa Monica, CA 90403
	Attention:	 	Jill Braden
	Tel:	 	(310) 264-4844 x2
	Fax:	 	(310) 264-4847
	Email:	 	jill@barrpart.com

  

 17 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

			
	NAME OF INVESTING ENTITY
	
	Diamond Opportunity Fund, LLC
		
	By:	 	 /s/ Richard Marks

	Name:	 	Richard Marks
	Title:	 	Managing Director
	
	ADDRESS FOR NOTICE
		
	c/o:	 	  

	Street:	 	500 Skokie Blvd., Suite 300
	City/State/Zip:	 	Northbrook, IL 60062
	Attention:	 	Richard Marks
	Tel:	 	(847) 559-1002
	Fax:	 	(847) 919-4410
	Email:	 	rmarks@diagrp.com

  

 18 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

			
	NAME OF INVESTING ENTITY
	
	Lake Street Fund, L.P.
		
	By:	 	 /s/ Scott W. Hood

	Name:	 	Scott W. Hood
	Title:	 	 Managing Director, Lake Street
 Management,
LLC

	
	ADDRESS FOR NOTICE
		
	c/o:	 	First Wilshire Securities Management, Inc.
	Street:	 	1224 East Green Street, Suite 200
	City/State/Zip:	 	Pasadena, California 91106
	Attention:	 	Scott W. Hood
	Tel:	 	(626) 796-6622
	Fax:	 	(626) 796-8990
	Email:	 	scott@firstwilshire.com

  

 19 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

			
	NAME OF INVESTING ENTITY
	
	The Mitchell W. Howard Trust
		
	By:	 	 /s/ Mitchell W. Howard

	Name:	 	Mitchell W. Howard
	Title:	 	Trustee
	
	ADDRESS FOR NOTICE
		
	c/o:	 	First Wilshire Securities Management, Inc.
	Street:	 	1224 East Green Street, Suite 200
	City/State/Zip:	 	Pasadena, California 91106
	Attention:	 	Mitchell W. Howard
	Tel:	 	(626) 796-6622
	Fax:	 	(626) 796-8990
	Email:	 	mitchell@firstwilshire.com

  

 20 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

			
	NAME OF INVESTING ENTITY
	
	JLF Offshore Fund, Ltd.
		
	By:	 	 /s/ Hien Tran

	Name:	 	Hien Tran
	Title:	 	CFO
	
	ADDRESS FOR NOTICE
		
	c/o:	 	JLF Asset Mgmt., LLC
	Street:	 	2775 Via de la Valle, Suite 204
	City/State/Zip:	 	Del Mar, CA 92014
	Attention:	 	Hien Tran
	Tel:	 	(858) 259-3443
	Fax:	 	(858) 259-3449
	Email:	 	htran@jlfllc.com

  

 21 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

			
	NAME OF INVESTING ENTITY
	
	JLF Partners I, LP
		
	By:	 	 /s/ Hien Tran

	Name:	 	Hien Tran
	Title:	 	CFO
	
	ADDRESS FOR NOTICE
		
	c/o:	 	JLF Asset Mgmt., LLC
	Street:	 	2775 Via de la Valle, Suite 204
	City/State/Zip:	 	Del Mar, CA 92014
	Attention:	 	Hien Tran
	Tel:	 	(858) 259-3443
	Fax:	 	(858) 259-3449
	Email:	 	htran@jlfllc.com

  

 22 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

			
	NAME OF INVESTING ENTITY
	
	JLF Partner II, LP
		
	By:	 	 /s/ Hien Tran

	Name:	 	Hien Tran
	Title:	 	CFO
	
	ADDRESS FOR NOTICE
		
	c/o:	 	JLF Asset Mgmt., LLC
	Street:	 	2775 Via de la Valle, Suite 204
	City/State/Zip:	 	Del Mar, CA 92014
	Attention:	 	Hien Tran
	Tel:	 	(858) 259-3443
	Fax:	 	(858) 259-3449
	Email:	 	htran@jlfllc.com

  

 23 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
written above. 
  

			
	NAME OF INVESTING ENTITY
	
	The Pinnacle Fund, L.P.
		
	By:	 	 /s/ Barry M. Kitt

	Name:	 	Barry M. Kitt
	Title:	 	Sole Member
	
	ADDRESS FOR NOTICE
		
	c/o:	 	The Pinnacle Fund, L.P.
	Street:	 	4965 Preston Park Blvd., Ste. 240
	City/State/Zip:	 	Plano, TX 75093
	Attention:	 	Barry M. Kitt
	Tel:	 	(972) 985-2121
	Fax:	 	(972) 985-2122
	Email:	 	bk@pinnaclefund.com

  

 24 

 Annex A 
 Plan of Distribution 
 The Selling Stockholders and any of their pledgees, donees, transferees, assignees and
successors-in-interest may, from time to time, sell any or all of their shares of Common Stock on any stock exchange, market or trading facility on which the shares are traded or in private transactions. These sales may be at fixed or negotiated
prices. The Selling Stockholders may use any one or more of the following methods when selling shares: 
  

	•	 	ordinary brokerage transactions and transactions in which the broker-dealer solicits Investors; 

  

	•	 	block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

  

	•	 	purchases by a broker-dealer as principal and resale by the broker-dealer for its account; 

  

	•	 	an exchange distribution in accordance with the rules of the applicable exchange; 

  

	•	 	privately negotiated transactions; 

  

	•	 	to cover short sales made after the date that this Registration Statement is declared effective by the Commission; 

  

	•	 	broker-dealers may agree with the Selling Stockholders to sell a specified number of such shares at a stipulated price per share; 

  

	•	 	a combination of any such methods of sale; and 

  

	•	 	any other method permitted pursuant to applicable law. 

 The Selling Stockholders may also sell shares under Rule 144 under the Securities Act, if available, rather than under this prospectus. 
 Broker-dealers engaged by the Selling Stockholders may arrange for other brokers-dealers to participate in sales. Broker-dealers may receive commissions or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for
the purchaser of shares, from the purchaser) in amounts to be negotiated. The Selling Stockholders do not expect these commissions and discounts to exceed what is customary in the types of transactions involved. 
 The Selling Stockholders may from time to time pledge or grant a security interest in some or all of the Shares owned by them and, if they default in the
performance of their secured obligations, the pledgees or secured parties may offer and sell shares of Common Stock from time to time under this prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or other applicable provision
of the Securities Act of 1933 amending the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus. 
  

 25 

 Upon the Company being notified in writing by a Selling Stockholder that any material arrangement has
been entered into with a broker-dealer for the sale of Common Stock through a block trade, special offering, exchange distribution or secondary distribution or a purchase by a broker or dealer, a supplement to this prospectus will be filed, if
required, pursuant to Rule 424(b) under the Securities Act, disclosing (i) the name of each such Selling Stockholder and of the participating broker-dealer(s), (ii) the number of shares involved, (iii) the price at which such the
shares of Common Stock were sold, (iv)the commissions paid or discounts or concessions allowed to such broker-dealer(s), where applicable, (v) that such broker-dealer(s) did not conduct any investigation to verify the information set out or
incorporated by reference in this prospectus, and (vi) other facts material to the transaction. In addition, upon the Company being notified in writing by a Selling Stockholder that a donee or pledgee intends to sell more than 500 shares of
Common Stock, a supplement to this prospectus will be filed if then required in accordance with applicable securities law. 
 The Selling
Stockholders also may transfer the shares of Common Stock in other circumstances, in which case the transferees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus. 
 The Selling Stockholders and any broker-dealers or agents that are involved in selling the shares may be deemed to be “underwriters” within the
meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or
discounts under the Securities Act. Discounts, concessions, commissions and similar selling expenses, if any, that can be attributed to the sale of Securities will be paid by the Selling Stockholder and/or the purchasers. Each Selling Stockholder
has represented and warranted to the Company that it acquired the securities subject to this Registration Statement in the ordinary course of such Selling Stockholder’s business and, at the time of its purchase of such securities such Selling
Stockholder had no agreements or understandings, directly or indirectly, with any person to distribute any such securities. 
 The Company
has advised each Selling Stockholder that it may not use shares registered on this Registration Statement to cover short sales of Common Stock made prior to the date on which this Registration Statement shall have been declared effective by the
Commission. If a Selling Stockholder uses this prospectus for any sale of the Common Stock, it will be subject to the prospectus delivery requirements of the Securities Act. The Selling Stockholders will be responsible to comply with the applicable
provisions of the Securities Act and Exchange Act, and the rules and regulations thereunder promulgated, including, without limitation, Regulation M, as applicable to such Selling Stockholders in connection with resales of their respective shares
under this Registration Statement. 
 The Company is required to pay all fees and expenses incident to the registration of the shares, but
the Company will not receive any proceeds from the sale of the Common Stock. The Company has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under the Securities Act.

  

 26 

 Annex B 
 VERI-TEK INTERNATIONAL, CORP. 
 Selling Securityholder Notice and Questionnaire 
 The undersigned beneficial owner of common stock (the “Common Stock”), of Veri-Tek International, Corp. (the “Company”) understands
that the Company has filed or intends to file with the Securities and Exchange Commission (the “Commission”) a Registration Statement for the registration and resale of the Registrable Securities, in accordance with the terms of the
Registration Rights Agreement, dated as of November     , 2006 (the “Registration Rights Agreement”), among the Company and the Investors named therein. A copy of the Registration Rights Agreement is
available from the Company upon request at the address set forth below. All capitalized terms used and not otherwise defined herein shall have the meanings ascribed thereto in the Registration Rights Agreement. 
 The undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate: 
 QUESTIONNAIRE 

					
	1. Name.
			
		  	(a)	 	Full Legal Name of Selling Securityholder
			
		  		 	  

			
		  	(b)	 	Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities Listed in Item 3 below are held:
			
		  		 	  

			
		  	(c)	 	Full Legal Name of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power to vote or dispose of the securities covered by the
questionnaire):
			
		  		 	  

	
	2. Address for Notices to Selling Securityholder:
	
	  

	  

	  

					
	Telephone:	  	  

					
	Fax:	  	  

					
	Contact Person:	  	  

  

 27 

					
	3. Beneficial Ownership of Registrable Securities:
			
		  		  	 Type and Principal Amount of Registrable Securities beneficially owned:

		  		  	  

		  		  	  

		  		  	  

	
	4. Broker-Dealer Status:
			
		  	(a)	  	Are you a broker-dealer?
			
		  		  	                    Yes   ̈            No   ̈
		
		  	 Note:    If yes, the Commission’s staff has indicated that you should be identified as an underwriter in
the Registration Statement.

			
		  	(b)	  	Are you an affiliate of a broker-dealer?
			
		  		  	                    Yes   ̈            No   ̈
			
		  	(c)	  	If you are an affiliate of a broker-dealer, do you certify that you bought the Registrable Securities in the ordinary course of business, and at the time of the purchase of the Registrable
Securities to be resold, you had no agreements or understandings, directly or indirectly, with any person to distribute the Registrable Securities?
			
		  		  	                    Yes   ̈            No   ̈
		
		  	 Note:    If no, the Commission’s staff has indicated that you should be identified as an underwriter
in the Registration Statement.

	
	5. Beneficial Ownership of Other Securities of the Company Owned by the Selling Securityholder.
		
		  	Except as set forth below in this Item 5, the undersigned is not the beneficial or registered owner of any securities of the Company other than the Registrable Securities
listed above in Item 3.
			
		  		  	Type and Amount of Other Securities beneficially owned by the Selling Securityholder:
			
		  		  	  

			
		  		  	  

			
		  		  	  

  

 28 

					
	6. Relationships with the Company:
		
		  	Except as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5% of more of the equity securities of
the undersigned) has held any position or office or has had any other material relationship with the Company (or its predecessors or affiliates) during the past three years.
		
		  	 State any exceptions here:

		
		  	  

 The undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information provided
herein that may occur subsequent to the date hereof and prior to the Effective Date for the Registration Statement. 
 By signing below, the undersigned
consents to the disclosure of the information contained herein in its answers to Items 1 through 6 and the inclusion of such information in the Registration Statement and the related prospectus. The undersigned understands that such information will
be relied upon by the Company in connection with the preparation or amendment of the Registration Statement and the related prospectus. 
 IN WITNESS WHEREOF
the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either in person or by its duly authorized agent. 
  

									
	Dated:	 	  
	 		 	        Beneficial Owner:	 	  

  

							
		 		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	

 PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT
MAIL, TO: 
 Foley & Lardner LLP 
 500 Woodward Avenue, Suite 2700 
 Detroit, Michigan 48226 
 Attn: Patrick Daugherty 
 Facsimile:
(313) 234-2800 
  

 29Change Orders 34, 35, 36, 37 and 38

 Exhibit 10.1 
 SCHEDULE D-1 
 CHANGE ORDER FORM 
  

			
	 PROJECT NAME: Sabine Pass LNG Receiving, Storage and Regasification Terminal 
  
 OWNER: Sabine Pass LNG, L.P. 
  
 CONTRACTOR: Bechtel Corporation 
  
 DATE OF AGREEMENT: December 18, 2004
	 	 CHANGE ORDER NUMBER: SP/BE- 034 
  
 DATE OF CHANGE ORDER: August 4, 2006
  
 P&ID HAZOPS Comments

 The Agreement between the Parties listed above is changed as follows: 
 Trend T-0047 is to implement the following P&ID Hazardous Operations (HAZOPS) review items per trend matrix reference numbers: 
  

	 	1.	Remove 2 butterfly valves, 4 ball valves and 4 globe valves in 30” header piping at storage tanks (Item 1.01). 

  

	 	2.	Provide position indicator on HV24021/2, 2 for S-101 - Total- 6 (Item 1.07). 

  

	 	3.	Add 2 each flow gauges to each unloading arm at East and West Jetty(Item 1.16) 

  

	 	4.	Low pressure discretionary vent, add 3 – 16” vents with actuated butterfly valves (Item 2.01). 

  

	 	5.	Add 1 each position indicator on PV-24002 (Item 2.02). 

  

	 	6.	Add 1 each differential pressure with transmitter and local pressure indicator (PI) upstream of V-103. (Item 3.03). 

  

	 	7.	For minimum flow line from in-tank pumps back into storage tanks, use interlocks to ensure one valve is always open (Item 3.11). 

  

	 	8.	Add 10” stainless steel check valve (2 each) between FV-25002 and V-111 (Item 4.09). 

  

	 	9.	Add flow indication, 2 places, in blanket gas line GN-25612 (Item 4.11). 

  

	 	10.	Add isolation drain valves at V-111 to allow discretionary vent (Item 4.12). 

  

	 	11.	Install splash guards at removable spool, 8” line, 2 each discharge line, 32 each (Item 4.19). 

  

	 	12.	Change 12” carbon steel 900# ball valves in master meter skid to trunion valves (Item 8.05). 

  

	 	13.	On-line custody calibration system is included in meter package. Item was cancelled. (Item 8.06). 

  

	 	14.	Add 12 inch carbon steel 900# check valves downstream of XV-25954. Item was cancelled. (Item 8.08). 

  

	 	15.	Provide level switches in place of differential pressure type level transmitters (Item 1.05). 

 Reference the following attached documents: 
  

	1)	Estimate for P&ID HAZOP Comments Changes (T-0047) 

  

	2)	Payment Milestones (T-0047) 

  

 1 of 3 

 SCHEDULE D-1 
 CHANGE ORDER FORM 
  

			
	 PROJECT NAME: Sabine Pass LNG Receiving, Storage and Regasification Terminal 
  
 OWNER: Sabine Pass LNG, L.P. 
  
 CONTRACTOR: Bechtel Corporation 
  
 DATE OF AGREEMENT: December 18, 2004
	 	 CHANGE ORDER NUMBER: SP/BE- 034 
  
 DATE OF CHANGE ORDER: August 4, 2006
  
 P&ID HAZOPS Comments

  

				
	 Adjustment to Contract Price
	  		
	 The original Contract Price was
	  	$	646,936,000
	 Net change by previously authorized Change Orders (#SP/BE-002 thru 0028, 0031 and 0033)
	  	$	86,200,784
	 The Contract Price prior to this Change Order was
	  	$	733,136,784
	 The Contract Price will be increased by this Change Order in the amount of
	  	$	1,366,829
	 The new Contract Price including this Change Order will be
	  	$	734,503,613

 Adjustment to dates in Project Schedule 
 The following dates are modified: 
 The Target Bonus Date will be unchanged. 
 The Target Bonus Date as of the date of this Change Order therefore is April 3 2008 (1,095 Days following the NTP) 
 The Guaranteed Substantial Completion Date will be unchanged December 20, 2008. 
 The Guaranteed Substantial Completion Date as of the date of this Change Order therefore is 1355 days following NTP. 
 Adjustment to other Changed Criteria: Not Applicable 
 Adjustment to Payment Schedule: See attached “Payment Milestone – P&ID Hazops
Comments (T-047). 
 Adjustment to Minimum Acceptance Criteria: No Change 
 Adjustment to Performance Guarantees: No Change 
 Adjustment to Design Basis: No Change. 
 Other adjustments to liability or obligation of Contractor or Owner under the Agreement: No Change 
 This Change Order shall constitute a full and final settlement and accord and satisfaction of all effects of the change as described in this Change Order upon the Changed Criteria and shall be deemed to
compensate Contractor fully for such change. 
 Upon execution of this Change Order by Owner and Contractor, the above-referenced change shall become a valid
and binding part of the original Agreement without exception or qualification, unless noted in this Change Order. Except as modified by this and any previously issued Change Orders, all other terms and conditions of the Agreement shall remain in
full force and effect. This Change Order is executed by each of the Parties’ duly authorized representatives. 
  

 Page 2 of 3 

 SCHEDULE D-1 
 CHANGE ORDER FORM 
  

			
	 PROJECT NAME: Sabine Pass LNG Receiving, Storage and Regasification Terminal 
  
 OWNER: Sabine Pass LNG, L.P. 
  
 CONTRACTOR: Bechtel Corporation 
  
 DATE OF AGREEMENT: December 18, 2004
	 	 CHANGE ORDER NUMBER: SP/BE- 034 
  
 DATE OF CHANGE ORDER: August 4, 2006
  
 P&ID HAZOPS Comments

  

					
			
	/s/ Charif Souki	 		 	/s/ C. Asok Kumar
	* Charif Souki	 		 	Contractor
	 Chairman
	 		 	C. Asok Kumar
		 		 	 Name

		 		 	Project Director
		 		 	Title
	  	 		 	Aug. 24, 2006
	Date of Signing	 		 	Date of Signing
			
	/s/ Stan Horton	 		 	 
	* Stan Horton	 		 	
	President & COO Cheniere Energy	 		 	
			
	   	 		 	 
	Date of Signing	 		 	
			
	/s/ Keith Meyer	 		 	 
	* Keith Meyer	 		 	
	President Cheniere LNG	 		 	
			
	Aug. 22, 2006	 		 	
	Date of Signing	 		 	
			
	/s/ Ed Lehotsky	 		 	 
	* Ed Lehotsky	 		 	
	Owner Representative	 		 	
			
	8/4/06	 		 	
	Date of Signing	 		 	

  

	*	Required Owner signature - Mr. Horton may sign on behalf on Mr. Souki during Mr. Souki’s absence. 

  

 Page 3 of 3 

 SCHEDULE D-1 
 CHANGE ORDER FORM 
  

			
	 PROJECT NAME: Sabine Pass LNG Receiving, Storage and Regasification Terminal 
  
 OWNER: Sabine Pass LNG, L.P. 
  
 CONTRACTOR: Bechtel Corporation 
  
 DATE OF AGREEMENT: December 18, 2004
	 	 CHANGE ORDER NUMBER: SP/BE- 035 
  
 DATE OF CHANGE ORDER: August 14, 2006
  
 Extension of Contractors All Risk, Delay in Start-Up (DSU), and Excess Of Loss – Windstorm and Flood Insurance Coverage Expiration Dates

 The Agreement between the Parties listed above is changed as follows: 
 With reference to the Agreement, Attachment O, Insurance Requirements the coverage period for the following insurance policies: 1) Contractors All Risk (Builder’s
Risk); 2) Builder’s Risk – Delayed Start-Up; and 3) Excess of Loss – Windstorm and Flood Policy, have been extended as follows. 
 Contractors All Risk – The Contractors All Risk (Builder’s Risk) coverage period has been extended to expire at 23:59 Central Standard Time on December 20, 2008 or issue of a Substantial Completion Certificate,
whichever is earlier. The additional premium is $731,136.00. If Substantial Completion is achieved between September 2, 2008 and December 19, 2008, the additional premium will be reimbursed on a pro-rata basis. 
 Delay In Start Up (DSU) – The Delay in Start Up coverage period has been extended to expire at 23:59 Central Standard Time on December 20, 2008 or issue
of a Substantial Completion Certificate, whichever is earlier. The additional premium is $373,644.00. If Substantial Completion is achieved between September 2, 2008 and December 19, 2008, the additional premium will be reimbursed on a
pro-rata basis. 
 Excess Of Loss – Windstorm and Flood Coverage – The Excess of Loss – Windstorm and Flood coverage period has been
extended to expire at 23:59 Central Standard Time on December 20, 2008 or issue of a Substantial Completion Certificate, whichever is earlier. The additional premium is $457,267.00. 
 The total value of this change order is $1,562,047.00. 
 It is recognized that some of the insurance policies that cover
Phase 1 Facility have been extended to include coverage for Phase 2 and in some cases the policy limits are being shared among the two Phases. To the extent any insurance policy provided by Bechtel under the Phase 2 Agreement also applies to
the Phase 1 Facility and an occurrence with respect to that policy affects both the Phase 1 Facility and the Phase 2 Facility, the Phase 1 Facility shall have priority and any proceeds from such insurance policy shall be used first to satisfy any
claim(s) with respect to the Phase 1 Facility before being applied or used to satisfy any claims with respect to the Phase 2 Facility.” 
 For avoidance
of doubt, the extension of the expiration dates of the insurance coverages listed above shall not be interpreted to modify the insurance requirements under the Agreement for Engineering, Procurement, Construction and Management of Construction
Services dated July 21, 2006 for the Phase 2 Receiving, Storage and Regasification Terminal Expansion. 
 Reference the following attached documents:

  

	1)	Estimate for Contractors All Risk, DSU, Excess of Loss Windstorm & Flood Insurance Coverage Period Changes 

  

	2)	Payment Milestones (T-0143). 

 With respect to the Milestone Payment for
the additional premiums in the amount $1,562, 047.00, the invoice will be due and payable no later than August 25, 2006. 

 SCHEDULE D-1 
 CHANGE ORDER FORM 
  

			
	 PROJECT NAME: Sabine Pass LNG Receiving, Storage and Regasification Terminal 
  
 OWNER: Sabine Pass LNG, L.P. 
  
 CONTRACTOR: Bechtel Corporation 
  
 DATE OF AGREEMENT: December 18, 2004
	 	 CHANGE ORDER NUMBER: SP/BE- 035 
  
 DATE OF CHANGE ORDER: August 14, 2006
  
 Extension of Contractors All Risk, Delay in Start-Up (DSU), And Excess Of Loss – Windstorm and Flood Insurance Coverage Expiration Dates

  

				
	 Adjustment to Contract Price
	  		
	 The original Contract Price was
	  	$	646,936,000
	 Net change by previously authorized Change Orders (#SP/BE-002 thru 0028, 0031 and 0034)
	  	$	87,567,613
	 The Contract Price prior to this Change Order was
	  	$	734,503,613
	 The Contract Price will be increased by this Change Order in the amount of
	  	$	1,562,047
	 The new Contract Price including this Change Order will be
	  	$	736,065,660

 Adjustment to dates in Project Schedule 
 The following dates are modified: 
 The Target Bonus Date will be unchanged. 
 The Target Bonus Date as of the date of this Change Order therefore is April 3, 2008 (1,095 Days following the NTP) 
 The Guaranteed Substantial Completion Date will be unchanged December 20, 2008. 
 The Guaranteed Substantial Completion Date as of the date of this Change Order therefore is 1,355 days following NTP. 
 Adjustment to other Changed Criteria: Not Applicable 
 Adjustment to Payment Schedule: See attached “Payment Milestone – Contractors
All-Risk, Delay in Start-Up, Excess of Loss – Windstorm and Flood Insurance coverage period changes (T-0143)”. Payment is due August 25, 2006. 
 Adjustment to Minimum Acceptance Criteria: No Change 
 Adjustment to Performance Guarantees: No Change 
 Adjustment to Design Basis: No Change. 
 Other adjustments to liability or
obligation of Contractor or Owner under the Agreement: No Change 
 This Change Order shall constitute a full and final settlement and accord and
satisfaction of all effects of the change as described in this Change Order upon the Changed Criteria and shall be deemed to compensate Contractor fully for such change. 

 SCHEDULE D-1 
 CHANGE ORDER FORM 
  

			
	 PROJECT NAME: Sabine Pass LNG Receiving, Storage and Regasification Terminal 
  
 OWNER: Sabine Pass LNG, L.P. 
  
 CONTRACTOR: Bechtel Corporation 
  
 DATE OF AGREEMENT: December 18, 2004
	 	 CHANGE ORDER NUMBER: SP/BE- 035 
  
 DATE OF CHANGE ORDER: August 14, 2006
  
 Extension of Contractors All Risk, Delay in Start-Up (DSU), And Excess Of Loss – Windstorm and Flood Insurance Coverage Expiration Dates

 Upon execution of this Change Order by Owner and Contractor, the above-referenced change shall become a valid and
binding part of the original Agreement without exception or qualification, unless noted in this Change Order. Except as modified by this and any previously issued Change Orders, all other terms and conditions of the Agreement shall remain in full
force and effect. This Change Order is executed by each of the Parties’ duly authorized representatives. 
  

					
			
	 /s/ Charif Souki
	 		 	/s/ C. Asok Kumar
	* Charif Souki	 		 	Contractor
	Chairman	 		 	C. Asok Kumar
		 		 	Name
		 		 	Project Director
		 		 	Title
	  	 		 	Aug. 24, 2006
	Date of Signing	 		 	Date of Signing
			
	/s/ Stan Horton	 		 	
	 * Stan Horton
 President & COO Cheniere
Energy
	 		 	
			
	  	 		 	
	Date of Signing	 		 	
			
	/s/ Keith Meyer	 		 	
	 * Keith Meyer
 President Cheniere LNG
	 		 	
			
	Aug. 22, 2006	 		 	
	Date of Signing	 		 	
			
	/s/ Ed Lehotsky	 		 	
	 * Ed Lehotsky
 Owner Representative
	 		 	
			
	8/21/06	 		 	
	Date of Signing	 		 	

  

	*	Required Owner signature - Mr. Horton may sign on behalf on Mr. Souki during Mr. Souki’s absence. 

 SCHEDULE D-2 
 UNILATERAL CHANGE ORDER FORM 
  

			
	 PROJECT NAME: Sabine Pass LNG Receiving, Storage and Regasification Terminal 
  
 OWNER: Sabine Pass LNG, L.P. 
  
 CONTRACTOR: Bechtel Corporation 
  
 DATE OF AGREEMENT: December 18, 2004
	 	 CHANGE ORDER NUMBER: SP/BE-036
  
 DATE OF CHANGE ORDER: Sep 14, 2006
  
 Project: Critical Piping Tie Ins

 You are hereby directed to make the following additions or modifications to, or deductions from, the Work:

 Implement the following critical Piping Tie-Ins: 
 Perform engineering, procurement, fabrication, shipping, storage, construction installation, and all other work necessary to achieve completed configurations for the Critical Piping Tie-ins which shall include but not necessarily be limited
to: 
  

	•	 	Modification to existing Phase 1 piping 

  

	•	 	Modification to existing Phase 1 piperack structure 

  

	•	 	Perform interference checks and make modifications as required to eliminate interferences with any and all other Phase 1 permanent features that are affected, such as cable trays
and cabling. 

  

	•	 	Provision of all supervision, craft labor, equipment, materials, tools, consumables, and personal protective equipment as required 

  

	•	 	Provision of cranes, lifts, and scaffolding as required 

  

	•	 	Fabrication and installation of piping assemblies complete with all fittings, valves, appurtenances, gaskets, bolts, vents, drains, and blinds as required to achieve completed
configurations as depicted on the attached P&IDs and isometrics. 

  

	•	 	Fabrication, protective coating, and installation of piping supports, both permanent and temporary as required 

  

	•	 	Stress relief as required 

  

	•	 	Non-destructive examination 

  

	•	 	Leak testing 

  

	•	 	Protective coating and insulation of piping as required. 

  

	•	 	Provide any other requirements for the safe and efficient future connections to these piping systems during the Phase 2 construction. 

 All other work necessary including management, QA/QC, reporting, record-keeping, touch-up, clean-up, removal of debris, and any other activity required to complete the
work. Refer to the attached documents for further information. 
 Contractor shall proceed with the above design changes and prepare detailed Lump Sum cost
estimates. Upon final review and approval by Owner of the detailed estimate, Contractor shall prepare the required documentation, including a completed Schedule D-3 in accordance with Article 6.1A of the Agreement. 
 Compensation for the changes specified in this Change Order is on a time and materials basis as provided in Section 6.1C and 6.2D of the Agreement. 
 Contractor shall commence with the performance of the change(s) described above on September 14, 2006 
  

 1 

 UNILATERAL CHANGE ORDER FORM 
  

			
	 PROJECT NAME: Sabine Pass LNG Receiving, Storage and Regasification Terminal 
  
 OWNER: Sabine Pass LNG, L.P. 
  
 CONTRACTOR: Bechtel Corporation 
  
 DATE OF AGREEMENT: December 18, 2004
	 	 CHANGE ORDER NUMBER: SP/BE-036
  
 DATE OF CHANGE ORDER: Sep 14, 2006
  
 Project: Critical Piping Tie Ins

 This Change Order is signed by Owner’s duly authorized representatives. 
  

					
			
	/s/ Charif Souki	 		 	/s/ Stan Horton
	*Charif Souki	 		 	* Stan Horton
	Chairman	 		 	President and COO Cheniere Energy
			
	  	 		 	9-20-06
	Date of Signing	 		 	Date of Signing
			
	/s/ Keith Meyer	 		 	/s/ Ed Lehotsky
	*Keith Meyer	 		 	* Ed Lehotsky
	President Cheniere LNG	 		 	 Owner Representative

			
	9-20-06	 		 	9/15/06
	Date of Signing	 		 	Date of Signing

  

	*	Required Owner signature - Mr. Horton may sign on behalf of Mr. Souki during Mr. Souki’s absence. 

  

 2 

 CHANGE ORDER 
  

			
	 PROJECT NAME: Sabine Pass LNG Receiving, Storage and Regasification Terminal 
  
 OWNER: Sabine Pass LNG, L.P. 
  
 CONTRACTOR: Bechtel Corporation 
  
 DATE OF AGREEMENT: December 18, 2004
	 	 CHANGE ORDER NUMBER: SP/BE-0037
  
 DATE OF CHANGE ORDER: September 30, 2006
  
 LNG TANK SUBCONTRACTOR – RECOVERY OF COST/SCHEDULE IMPACTS RELATED TO HURRICANES KATRINA, RITA AND WILMA

 The Agreement between the Parties listed above is changed as follows: 
 Contractor and Owner agree to implement and incorporate the following changes to the Agreement for the impacts to the LNG Tank Subcontractor caused by hurricanes
Katrina, Rita and Wilma (the “Hurricanes”) and to accelerate the Work to achieve the Ready for Cool Down dates as contained in Change Order SP/BE-0032, in order for Contractor to achieve the Target Bonus Date and the
Forecasted Substantial Completion date, as contained in Change Order SP/BE-0032. 
 Adjustment to Contract Price: 
  

				
	 The original Contract Price was
	  	$	646,936,000
	 Net change by previously authorized Change Orders
	  	$	89,129,660
	 The Contract Price prior to this Change Order was
	  	$	736,065,660
	 The Contract Price will be increased by this Change Order in the amount of
	  	$	10,472,865
	 The new Contract Price including this Change Order will be
	  	$	746,538,525

 The Contract Price adjustment of $10,472,865 set forth in this Change Order is hereinafter referred to as the
“LNG Tank Subcontract Price Adjustment.” The breakdown of the LNG Tank Subcontract Price Adjustment is attached hereto as Attachment A. 
  

	 	(1)	Part of the LNG Tank Subcontract Price Adjustment is to attract qualified craft and supervision, plus the use of certain equipment required to accelerate the Subcontract Work to
achieve the Ready for Cool Down dates, which are required to achieve Contractor’s Target Bonus Date and Forecasted Substantial Completion date. The Parties agreement with respect to the forecast of wage, and incentive increases, plus the use of
certain equipment, is listed in paragraphs 4.01 through 4.09 of Attachment A (hereinafter referred to as the “Revised Compensation & Equipment Forecast”). If the Contractor does not pay out the full
Revised Compensation & Equipment Forecast amount, the LNG Tank Subcontract Price Adjustment will be lowered in the amount of the difference in the amount paid and the amount listed in paragraphs 4.01 through 4.09 and the
adjustment will be reflected in a subsequent Change Order. On the other hand, if the Revised Compensation & Equipment Forecast amount is not sufficient to attract qualified craft and supervision personnel to accelerate the Work to
achieve the Ready for Cool Down dates, the Target Bonus date and the Forecasted Substantial Completion date, the Parties will revise the Revised Compensation & Equipment Forecast cost elements, as necessary, or adjust the Tank RFCD
dates, Target Bonus date or the Forecasted Substantial Completion date, to the degree that it can be demonstrated that any Owner decision not to increase the Revised Compensation and Equipment Forecast as recommended by the LNG Tank Subcontractor
will impact the critical path RFCD dates. Any such changes in the Revised Compensation & Equipment Forecast or schedule completion dates will be incorporated into the Agreement through a separate Change Order.

  

	 	(2)	 The LNG Tank Subcontract Price Adjustment above excludes potential bonuses that may be earned pursuant to Attachment A, item 5.0. Should Tank 1 be Ready for
Cool Down (“RFCD”) on or before February 18, 2008, the LNG Tank Subcontractor will earn a lump sum bonus payment of five hundred thousand dollars ($500,000). Should Tank 2 be RFCD on or before March 23, 2008, the 

  

 Page 1 of 3 

	 	 
LNG Tank Subcontractor will earn a lump sum bonus payment of five hundred thousand dollars ($500,000). No bonus ($500,000) may be earned by the LNG Tank
Subcontractor if Tank 1 is RFCD later than February 18, 2008. No bonus ($500,000) may be earned by the LNG Tank Subcontractor if Tank 2 is RFCD later than March 23, 2008. 

 Should Tank 3 be Ready for Cool Down (“RFCD”) prior to July 1, 2008, LNG Tank Subcontractor will earn a daily bonus of eighteen thousand
four hundred and sixty-one dollars ($18,461) per calendar day, up to a maximum bonus of one million two hundred thousand dollars ($1,200,000). 
 A separate Change Order will be executed at such time as each bonus is earned. 
  

	 	(3)	All amounts paid to Contractor under this Change Order SP/BE-0037 (and future Change Orders if a RFCD bonus is earned per Section 2 above) will be paid to the LNG Tank
Subcontractor. 

 Other Requirements and Information: 
 With respect to Attachment A, Actual Cost (1.0), LNG Tank Subcontractor’s payment records related to the actual costs paid, will be available for Owners review, on site. Payment to Subcontractor will be made
simultaneous with payment to Contractor, which is due within thirty (30) after Owners review and approval of LNG Tank Subcontractor’s invoice. 
 With respect to Attachment A, Lump Sum Costs (2.0) and Risk Premium (3.0), LNG Tank Subcontractor shall be paid these amounts on a lump sum basis. Payment to Subcontractor will be made simultaneous with payment to Contractor, which is
due within thirty (30) after Owners review and approval of LNG Tank Subcontractor’s invoice. 
 With respect to Attachment A, the Revised
Compensation & Equipment Forecast (4.0), on a monthly basis LNG Tank Subcontractor’s payment records related to the wages, incentives and equipment usage paid out with respect to paragraphs 4.01 to 4.09 of Attachment A will be
available for Owner’s review on Site. Such records shall be in the form of LNG Tank Subcontractor’s standard records, as may be reasonably required by Owner to validate LNG Tank Subcontractor’s payments for such wages, incentives, and
equipment in accordance with Attachment A. The amounts paid with respect to item (1) shall be reconciled on a monthly basis and once agreed in writing shall not be subject to further review. Payment to Subcontractor will be made simultaneous
with payment to Contractor, which is due within thirty (30) after Owners review and approval of LNG Tank Subcontractor’s invoice. 
 Any
Dispute related to the Owner approval or payment of an LNG Tank Subcontractor invoice or charge under this Change Order, shall be resolved in accordance with the Agreement, Article 18.1, except that Owners, Contractors and LNG Tank
Subcontractors senior management shall meet and have full authority to equitably resolve such dispute. The decision of the senior managers shall be binding on all parties and such decision shall not be subject to further dispute or appeal pursuant
to Article 18.2. 
 Pursuant to (1) above, Owner, Contractor and LNG Tank Subcontractor senior executives will meet once a quarter to review progress of
the Subcontract Work compared to the revised Level III Schedule, current issues, mitigation efforts and proactive actions to be taken. In addition, they will discuss whether any additional requirements outside of this Change Order should be
implemented, which may or may not cause the Contract Price and/or Project Schedule to be adjusted. If such additional requirements are implemented, they will be implemented through a Change Order. 
 The Parties’ agreement hereunder with respect to the events covered by this Change Order shall not prejudice or waive any rights the Parties’ may have under
the Agreement with respect to any future events of Force Majeure (including hurricanes and named tropical storms), if any. 
  

 2 

 Adjustment to dates in Project Schedule 
 The following dates are modified: 
 The Target Bonus Date will be unchanged from April 3, 2008. 
 The Target Bonus Date as of the date of this Change Order therefore is 1,095 Days following the NTP. 
 The Guaranteed Substantial Completion Date will be unchanged from Dec 20, 2008. 
 The Guaranteed Substantial Completion Date
as of the date of this Change Order therefore is therefore 1,355 Days following NTP. 
 Adjustment to other Changed Criteria: Not Applicable 
 Adjustment to Payment Schedule: Per the attached Payment Schedule 
 Adjustment to Minimum Acceptance Criteria: No Change 
 Adjustment to Performance Guarantees: No Change 
 Adjustment to Design Basis: No change 
 Other adjustments to liability or
obligation of Contractor or Owner under the Agreement: No Change 
 Subject to the adjustments (if any) with respect to item (1) under the heading
“Adjustment to Contract Price”, this Change Order shall constitute a full and final settlement and accord and satisfaction of all of the effects of the change as described in this Change Order upon the Changed Criteria and shall be deemed
to compensate Contractor for such change. 
 Upon execution of this Change Order by Owner and Contractor, the above-referenced change shall become a valid
and binding part of the original Agreement without exception or qualification, unless noted in this Change Order. Except as modified by this and any previously issued Change Orders, all other terms and conditions of the Agreement shall remain in
full force and effect. This Change Order is executed by each of the Parties’ duly authorized representatives. 
  

					
			
	/s/ Stan Horton	 		 	/s/ C. Asok Kumar
	*Charif Souki, Chairman	 		 	Contractor
			
	10/20/06	 		 	C. Asok Kumar
	Date of Signing	 		 	Name
			
	/s/ Stan Horton	 		 	Project Director
	*Stan Horton, President & COO Cheniere Energy	 		 	Title
			
	10/20/06	 		 	10/20/06
	Date of Signing	 		 	Date of Signing
			
	/s/ Keith Meyer	 		 	 
	* Keith Meyer, President Cheniere LNG	 		 	

  

 3 

					
			
	10-23-06	 		 	
	Date of Signing	 		 	
			
	/s/ Ed Lehotsky	 		 	 
	*Ed Lehotsky, Owner Representative	 		 	
			
	10/19/06	 		 	
	Date of Signing	 		 	

  

	*	Required Owner Signature – Mr. Horton may sign on behalf of Mr. Souki during Mr. Souki’s absence. 

  

 4 

 SP/BE-0037 
 Attachment A 
 LNG Tank Subcontract Price Adjustment 
  

						
	 	  	 Description
	  	Cost
		  	Cost Impacts from Hurricanes and Acceleration Costs	  	 	LNG Tank Subcontract
	1.0	  	Actual Cost	  	$	1,069,616
	2.0	  	Lump Sum Costs (includes material & equipment, recovery plan and improved site access in tank area)	  	$	1,314,416
	3.0	  	Risk Premium	  	$	1,200,000
		  	Subtotal Actual/Lump Sum Cost	  	$	3,584032
		  	Revised Compensation & Equipment Forecast to Recover Schedule Impacts	  		
		  	(Subject to Quarterly Review as Provided in Change Order)	  		
	4.0	  	Wage, Benefit and Incentive Increases	  		
	4.01	  	Craft Labor Cost	  	$	1,789,911
	4.02	  	On-Site Staff Labor Cost	  	$	299,945
	4.03	  	Increased Craft Subsistence	  	$	1,052,547
	4.04	  	Increased On-Site Staff Subsistence	  	$	160,986
	4.05	  	Increased future Subcontractor cost	  	$	1,104,313
	4.06	  	DMSI Concrete Cost	  	$	363,720
	4.07	  	Employee Retention Incentive	  	$	1,250,000
	4.08	  	Discretionary overtime and subcontractor incentives	  	$	110,000
	4.09	  	Equipment to improve schedule	  	$	757,411
		  	Subtotal Increase in Wage and Incentives plus Equipment	  	$	6,888,833
		  	Total Change Order Amount SP/BE-0037	  	$	10,472,865
		  	Potential Bonuses – Paid Only if RFCD dates achieved	  		
	5.01	  	Tank 1 RFCD (lump sum)	  	$	500,000
	5.02	  	Tank 2 RFCD (lump sum)	  	$	500,000
	5.03	  	Tank 3 RFCD ($18,461/ day to max $1.2 mil)	  	$	1,200,000
		  	Subtotal Potential Bonuses (by future Change Order)	  	$	2,200,000

 CHANGE ORDER 
  

			
	 PROJECT NAME: Sabine Pass LNG Receiving, Storage and Regasification Terminal
  
 OWNER: Sabine Pass LNG, L.P.
  
 CONTRACTOR: Bechtel Corporation
  
 DATE OF AGREEMENT: December 18, 2004
	  	 CHANGE ORDER NUMBER: SP/BE-0038
  
 DATE OF CHANGE ORDER: October 11, 2006
  
 PILING and MARINE SUBCONTRACTOR – RECOVERY OF COST/SCHEDULE IMPACTS RELATED TO HURRICANES KATRINA, RITA AND WILMA

 The Agreement between the Parties listed above is changed as follows: 
 Contractor and Owner agree to implement and incorporate the following changes to the Agreement for all of the cost impacts to the Piling (BOH Bros.) and Marine (Weeks
Marine) Subcontractors and the LNG Tank Piling Supplier (Dunham-Price) caused by hurricanes Katrina, Rita and Wilma (the “Hurricanes”). 
 Adjustment to Contract Price: 
  

				
	 The original Contract Price was
	  	$	646,936,000
	 Net change by previously authorized Change Orders
	  	$	99,602,525
	 The Contract Price prior to this Change Order was
	  	$	746,538,525
	 The Contract Price will be increased by this Change Order in the amount of
	  	$	3,997,529
	 The new Contract Price including this Change Order will be
	  	$	750,536,054

 The Contract Price adjustment of $3,997,529 set forth in this Change Order is hereinafter referred
to as the “Piling and Marine Subcontract Force Majeure Price Adjustment.” The breakdown of the Contract Price increase is as follows: 
  

				
	 1. Dunham Price- LNG Tank Pile Supplier
	  	$	 957,135.00
	 2. Weeks Marine- Marine Work Subcontractor
	  	$	2,007,342.00
	 3. BOH Bros. Process Piling Work Subcontractor
	  	$	1,033,052.00
		  	 	 
		  	$	3,997,529.00

 This Contract Price adjustment is for the full and final settlement of force majeure issues and claims by
Contractor’s Subcontractors Weeks Marine and BOH Bros and Contractor’s Sub-subcontractor Dunham – Price for the LNG tank pile supply 
 The
Parties’ agreement hereunder, with respect to the events covered by this Change Order, shall not prejudice or waive any rights the Parties’ may have under the (1) Agreement with respect to any future events of Force Majeure (including
hurricanes and named tropical storms), if any, or (2) Change Orders SP/BE 30, 32 or 37. 
 Adjustment to dates in Project Schedule 
 The following dates are modified: 
 The Target Bonus Date will be unchanged
from April 3, 2008. 
 The Target Bonus Date as of the date of this Change Order therefore is 1,095 Days following the NTP. 
 The Guaranteed Substantial Completion Date will be unchanged from Dec 20, 2008. 
 The Guaranteed Substantial Completion Date as of the date of this Change Order therefore is therefore 1,355 Days following NTP. 

 Adjustment to other Changed Criteria: Not Applicable 
 Adjustment to Payment Schedule: Per the attached Payment Schedule 
 Adjustment to Minimum Acceptance Criteria: No Change

 Adjustment to Performance Guarantees: No Change 
 Adjustment
to Design Basis: No change 
 Other adjustments to liability or obligation of Contractor or Owner under the Agreement: No Change 
 Subject to the adjustments (if any) under the heading “Adjustment to Contract Price”, this Change Order shall constitute a full and final settlement and accord
and satisfaction of all of the effects of the change as described in this Change Order upon the Changed Criteria and shall be deemed to compensate Contractor for such change. 
 Upon execution of this Change Order by Owner and Contractor, the above-referenced change shall become a valid and binding part of the original Agreement without exception or qualification, unless noted in this Change
Order. Except as modified by this and any previously issued Change Orders, all other terms and conditions of the Agreement shall remain in full force and effect. This Change Order is executed by each of the Parties’ duly authorized
representatives. 
  

					
			
	 /s/ Stan Horton
	 		 	 /s/ C. Asok Kumar

	 *Charif Souki, Chairman
	 		 	 Contractor

			
	 10/20/06
	 		 	 C. Asok Kumar

	 Date of Signing
	 		 	 Name

			
	 /s/ Stan Horton
	 		 	 Project Director

	 *Stan Horton, President & COO Cheniere Energy
	 		 	 Title

			
	 10/20/06
	 		 	 10/30/06

	 Date of Signing
	 		 	 Date of Signing

			
	 /s/ Keith Meyer
	 		 	 
	 * Keith Meyer, President Cheniere LNG
	 		 	
			
	 10-23-06
	 		 	 
	 Date of Signing
	 		 	
			
	 /s/ Ed Lehotsky
	 		 	 
	 *Ed Lehotsky, Owner Representative
	 		 	
			
	 10/17/2006
	 		 	 
	 Date of Signing
	 		 	

  

	*	Required Owner Signature – Mr. Horton may sign on behalf of Mr. Souki during Mr. Souki’s absence.

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