Document:

CHANGE IN CONTROL
                                   AGREEMENT

                                                                    Exhibit 10.1

THIS  AGREEMENT  is made  as of the  29th  day of  March,  2007  by and  between
McDermott  International,  Inc., a corporation  duly organized under the laws of
the Republic of Panama (the "Company") and Michael S. Taff ("Executive".)

In consideration of the mutual covenants and agreements  contained  herein,  and
other good and valuable consideration,  the receipt and sufficiency of which are
hereby expressly acknowledged, the parties hereto agree as follows:

I.   Obligations of the Company Upon  Termination  of Executive  After Change In
     Control.  Following the Effective Date of a Change In Control, in the event
     Executive's  employment  by the Company is  terminated  before the one-year
     anniversary  of the Effective Date of a Change In Control either (i) by the
     Company for any reason other than Cause,  or (ii) by the Executive for Good
     Reason,  then subject to the provisions of paragraph (b) below, the Company
     shall:

     (a)  Pay to the Executive  within thirty days after the date of termination
          of Executive's  employment (or such earlier time as may be required by
          law) the Accrued Benefits;

     (b)  In the  event  that a bonus  is paid  after  the  date of  Executive's
          termination  of  employment  under the Company's  Executive  Incentive
          Compensation Plan ("EICP") for the year prior to the year in which the
          termination  takes  place  (the  "Measurement  Period"),  pay  to  the
          Executive  in a lump sum, at the same time such bonus is paid to other
          EICP participants, a cash bonus equal to the product of the multiplier
          used for Executive's  position and Executive's  annual base salary for
          the Measurement Period.

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     (c)  Pay to  Executive  in a lump sum in cash within  thirty days after the
          date of  termination  of Executives  employment a payment equal to the
          product of  Executive's  target bonus under EICP for the year in which
          the termination takes place and a fraction,  the numerator of which is
          the  number  of days  that  have  elapsed  in the  year in  which  the
          termination takes place through the date of termination of Executive's
          employment and the denominator of which is 365.

     (d)  Pay to  Executive  in a lump  sum in cash as soon as  administratively
          practicable  after the date of termination  of Executive's  employment
          200% of the sum of (1)  Executive's  annual  base  salary as in effect
          immediately   prior  to  the  date  of   termination   of  Executive's
          employment,  and (2) Executive's  target bonus under EICP for the year
          in which the termination takes place.

     (e)  In the event that it is determined that any payment or distribution of
          any type to or for the benefit of the  Executive  made by the Company,
          by any of its  affiliates,  by any person who  acquires  ownership  or
          effective  control  or  ownership  of a  substantial  portion  of  the
          Company's  assets  (within the meaning of section 280G of the Internal
          Revenue Code of 1986, as amended, and the regulations  thereunder (the
          "Code")) or by any  affiliate of such person,  whether paid or payable
          or  distributed  or  distributable  pursuant  to  the  terms  of  this
          Agreement or otherwise (the "Total  Payments") would be subject to the
          excise tax  imposed by Section  4999 of the Code (the  "Excise  Tax"),
          then the Executive shall be entitled to receive an additional  payment
          (an "Excise Tax Restoration Payment") in an amount that shall fund the
          payment by the  Executive  of any Excise Tax on the Total  Payments as
          well  as all  income  taxes  imposed  on the  Excise  Tax  Restoration
          Payment,  and any  Excise Tax  imposed  on the Excise Tax  Restoration
          Payment.

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II.  Participation In Other Company Programs.

     Nothing in this Agreement shall prevent or limit Executive's  continuing or
     future  participation in any plan, program,  policy or practice provided by
     the Company for which Executive may qualify,  nor, subject to paragraph (d)
     of Section X, shall anything  herein limit or otherwise  affect such rights
     as Executive  may have under any  contract or  agreement  with the Company.
     Amounts which are vested benefits or which Executive is otherwise  entitled
     to receive under any plan,  policy,  practice or program of or any contract
     or agreement  with the Company at or subsequent to the date of  termination
     of Executive's  employment  shall be payable in accordance  with such plan,
     policy,  practice or program or contract or agreement  except as explicitly
     modified by this Agreement.  Notwithstanding the foregoing, it is expressly
     understood  and  acknowledged  by Executive that any payment by the Company
     under  Section I hereof shall be in lieu of any  obligation  on the part of
     the Company for payment of severance  benefits under the Severance Plan for
     Employees  of  McDermott  Incorporated  and  Participating  Subsidiary  and
     Affiliated  Companies or any successor thereto or any other plan, policy or
     agreement  of the  Company  in the  event  of  termination  of  Executive's
     employment  as provided  in Section I hereof  with the  Company  during the
     one-year period following the Effective Date of a Change In Control.

III. Confidential and Proprietary Information.

     Executive  acknowledges and agrees that any and all non-public  information
     regarding the Company,  any of its  Subsidiaries and its or their customers
     (including  but not limited to any and all  information  relating to its or
     their  business  practices,   products,  services,  finances,   management,
     strategy,  profits  and  overhead)  is  confidential  and the  unauthorized
     disclosure of such confidential information will result in irreparable harm
     to the Company.  Executive  shall not, during his employment by the Company
     or any of its Subsidiaries and for a period of five years after termination
     of such  employment  (or such  shorter  period as may be  required by law),
     disclose or permit the disclosure of any such  confidential  information to
     any  person  other  than an  employee  or  director  of the  Company or its
     Subsidiaries  or any  successor  thereto  or an  individual  engaged by the
     Company or its Subsidiaries or any successor thereto to render professional
     services  to the  Company  or its  Subsidiaries  under  circumstances  that
     require such person to maintain the  confidentiality  of such  information,
     except as such  disclosure  may be required by law. The  provisions of this
     Section III shall survive any termination of this  Agreement.  For purposes
     of this Section III, the term "confidential  information" shall not include
     information  that was or becomes  generally  available  to the public other
     than as a result of disclosure by Executive.  Executive  acknowledges  that
     the  execution of this  Agreement  and the payments  described in Section I
     herein constitute consideration for the limitations on activities set forth
     in this Section III, the adequacy of which is hereby expressly acknowledged
     by  Executive.  Executive  understands  and agrees that the  Company  shall
     suffer  irreparable harm if Executive breaches Section III hereof, and that
     monetary   damages   shall  be  inadequate  to  address  any  such  breach.
     Accordingly, Executive agrees that the Company shall have the right, to the
     extent  permitted by applicable law, and in addition to any other rights or
     remedies it may have,  to obtain from any court of competent  jurisdiction,
     injunctive  relief to restrain any breach or  threatened  breach  hereof or
     otherwise to specifically enforce the provisions hereof.

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IV.  Notices.

     All notices and other  communications  provided for by this Agreement shall
     be in  writing  and  shall be  deemed  to have  been  duly  given  when (a)
     delivered by hand,  (b) sent by facsimile or email to the facsimile  number
     or  email  address  given  below,  provided  that a copy is also  sent by a
     nationally  recognized  overnight delivery service, (c) the day after being
     sent by a nationally  recognized  overnight delivery service,  or (d) three
     days after being mailed by United States  Certified  Mail,  return  receipt
     requested, postage prepaid, addressed as follows:

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                  If to Executive:  Michael S. Taff
                                    13814 Woodthorpe Lane
                                    Houston, Texas 77079

                      Email:        mstaff@mcdermott.com

                      Facsimile:    281-870-5046

                  If to the Company:

                      McDermott International, Inc.

                      c/o           Louis J. Sannino
                                    Executive Vice President, Human Resources
                                    777 N. Eldridge Parkway
                                    Houston, TX  77079

                      Email:        ljsannino@mcdermott.com

                      Facsimile:    281-870-5095

     or to such other  address as any party may have  furnished  to the other in
     writing in accordance with this Agreement.

V.   Governing Law.

     The  provisions of this  Agreement  shall be  interpreted  and construed in
     accordance with, and enforcement may be made under, the law of the State of
     Texas without reference to principles of conflict of laws.

VI.  Successors and Assigns.

     (a)  This Agreement is personal to Executive and, without the prior written
          consent of the Company, shall not be assignable by Executive otherwise
          than by will or the laws of descent and distribution.

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<PAGE>

     (b)  This Agreement shall be binding upon and shall inure to the benefit of
          the Company and its successors and assigns.

     (c)  The Company will require  that any  successor to all or  substantially
          all of its business  and/or assets  (whether such  successor  acquires
          such business  and/or assets  directly or  indirectly,  and whether by
          purchase,  merger,  consolidation  or otherwise)  expressly assume and
          agree to perform  this  Agreement  in the same  manner and to the same
          extent  that the  Company  would be  required to perform it if no such
          succession had taken place. As used in this Agreement, "Company" shall
          mean the Company as herein  defined and any  successor to its business
          and/or assets.

VII. Employment by Subsidiaries.

     If Executive is not employed by McDermott International,  Inc., but is only
     employed by one or more Subsidiaries of McDermott International, Inc., then
     (a) the  "Company"  as  defined  herein  shall be  deemed to  include  such
     Subsidiary or  Subsidiaries,  and (b)  termination  of employment  shall be
     determined   with   reference  to   Executive's   employment  by  all  such
     Subsidiaries.  Further,  the  Company  agrees  that  it  will  perform  its
     obligations  hereunder  without regard to whether  Executive is employed by
     the Company or by a Subsidiary or Subsidiaries of the Company.

VIII. Severability.

     If any  provision or portion of this  Agreement  shall be  determined to be
     invalid or unenforceable for any reason,  the remaining  provisions of this
     Agreement  shall be  unaffected  thereby and shall remain in full force and
     effect to the fullest extent permitted by applicable law.

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<PAGE>

IX.  Entire Agreement; Amendment.

     This  Agreement  sets forth the entire  Agreement of the parties hereto and
     supersedes all prior agreements,  understandings  and covenants between the
     parties with respect to the subject  matter  hereof.  Except as provided in
     Section X,  paragraphs  (d) and (f) or Section  XI, this  Agreement  may be
     amended or terminated only by mutual agreement of the parties in writing.

X.   Miscellaneous.

     (a)  The  captions  and  headings  of this  Agreement  are not  part of the
          provisions hereof and shall have no force or effect.

     (b)  The Company  shall be entitled  to withhold  from any amounts  payable
          under this Agreement  such Federal,  state,  local,  foreign or excise
          taxes as shall be required or permitted to be withheld pursuant to any
          applicable law or regulation.

     (c)  Executive's or the Company's  failure to insist upon strict compliance
          with any  provision  of this  Agreement  or the  failure to assert any
          right Executive or the Company may have hereunder,  including, without
          limitation,  the right of Executive to terminate  employment  for Good
          Reason  pursuant to  paragraph  (g) of Section XII of this  Agreement,
          shall not be deemed to be a waiver of such  provision  or right or any
          other provision or right of this Agreement.

     (d)  Executive and the Company acknowledge that, except as may otherwise be
          provided under any other written  agreement  between Executive and the
          Company,  the employment of Executive by the Company is "at will" and,
          subject to the last  sentence of paragraph  (f) of Section XII hereof,
          Executive's  employment  may be terminated by either  Executive or the
          Company  at any  time  prior  to the  Effective  Date of a  Change  In
          Control,  in which case this Agreement  shall terminate as provided in
          Section XI below and Executive shall have no further rights under this
          Agreement.

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<PAGE>

     (e)  For purposes of this Agreement, the date of termination of Executive's
          employment  shall be: (i) if  Executive's  employment is terminated by
          the  Company  for Cause,  the date on which the  Company  delivers  to
          Executive the  resolution  referred to in the last sentence of Section
          XII,  paragraph  (c), or, with respect to a termination  under Section
          XII,  paragraph  (c)(iii),  the date on  which  the  Company  notifies
          Executive  of such  termination,  (ii) if  Executive's  employment  is
          terminated by the Company  because of Executive's  Disability or for a
          reason other than Cause or Executive's  death or Disability,  the date
          on which the Company notifies Executive of such termination,  (iii) if
          executive's employment is terminated by Executive for Good Reason, the
          date on which  Executive  notifies  the  Company  of such  termination
          (after having given the Company notice and a thirty-day  cure period),
          or (iv) if  Executive's  employment  is terminated by reason of death,
          the date of death of executive.

     (f)  The Company may terminate this Agreement at any time prior to a Change
          In Control upon giving Executive written notice of such termination at
          least  thirty days prior to the date of  termination  if either of the
          following  circumstances take place: (i) Executive's position with the
          Company is changed so that he ceases to be an officer of the  Company,
          or (ii) Executive ceases to be a fulltime employee; provided that if a
          Change In  Control  is  announced  or occurs  during  such  thirty-day
          period, the termination shall not be effective.

     (g)  This  Agreement  may be  executed in two  counterparts,  each of which
          shall be deemed an original and together shall  constitute one and the
          same  agreement,  with one  counterpart  being delivered to each party
          hereto.

     (h)  In the event the  Executive's  employment is terminated  following the
          Effective  Date  of a  Change  In  Control  and  before  the  one-year
          anniversary  of the  Effective  Date of a Change In Control (i) by the
          Company for Cause or an a result of  Executive's  death or disability,
          or (ii) by  Executive  without  Good  Reason,  Executive  shall not be
          entitled to the payments described in Section 1 hereof.

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XI.  Term.

     This Agreement  shall terminate on the earliest to occur of (i) termination
     by the Company in accordance with Section X, paragraph (f) above,  (ii) the
     date one year after the Effective Date of a Change or Control, or (iii) the
     date on  which  Executive's  employment  with  the  Company  is  terminated
     (subject to the last  sentence of Section XII,  paragraph  (g));  provided,
     however,  that if  Executive's  employment  with the Company is  terminated
     under any of the circumstances  described in Section I hereof,  Executive's
     rights  hereunder  shall  continue  following  the  termination  of his/her
     employment  with the  Company  until all  benefits  to which  Executive  is
     entitled  hereunder has been paid and the Company's  rights hereunder shall
     continue until all obligations owed to it hereunder have been satisfied.

XII. Definitions.

     For purposes of this Agreement, the following terms shall have the meanings
     given them in this Section XII.

     (a) "Accrued Benefits" shall mean:

          (i)  Any portion of Executive's  Annual Base Salary earned through the
               date of termination of Executive's employment and not yet paid;

          (ii) Reimbursement for any and all amounts advanced in connection with
               Executive's  employment  for  reasonable  and necessary  expenses
               incurred  by  Executive   through  the  date  of  termination  of
               Executive's  employment in accordance with the Company's policies
               and procedures on reimbursement of expenses;

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          (iii) Any  earned  vacation  pay  not  theretofore  used  or  paid  in
               accordance  with the  Company's  policy for payment of earned and
               unused vacation time; and

          (iv) All  other  payments  and  benefits  to  which  Executive  may be
               entitled   under  the  terms  of  any   applicable   compensation
               arrangement or benefit plan or program of the Company that do not
               specify the time of distribution;  provided that Accrued Benefits
               shall  not  include  any   entitlement  to  severance  under  any
               severance  policy  of the  Company  generally  applicable  to the
               salaried employees of the Company.

     (b)  "Annual  Base  Salary"  shall  mean  Executive's  annual  rate  of pay
          excluding  all  other  elements  of  compensation   such  as,  without
          limitation,  bonuses,  perquisites,  expatriate or hardship  premiums,
          restricted  stock  awards,  stock options and  retirement  and welfare
          benefits.

     (c)  "Cause" shall mean:

           (i) the  willful  and  continued  failure  of  Executive  to  perform
               substantially  his/her  duties  with the Company  (occasioned  by
               reason other than  physical or mental  illness or  disability  of
               Executive) after a written demand for substantial  performance is
               delivered to Executive by the Compensation Committee of the Board
               or the Chief Executive Officer of the Company which  specifically
               identifies the manner in which the Compensation  Committee of the
               Board or the Chief Executive  Officer believes that Executive has
               not substantially performed his/her duties, after which Executive
               shall  have  thirty  days to  defend or remedy  such  failure  to
               substantially perform his/her duties:

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<PAGE>

          (ii) the willful  engaging by  Executive  in illegal  conduct or gross
               misconduct which is materially and demonstrably  injurious to the
               Company; or

         (iii) the  conviction  of  Executive  with no further  possibility  of
               appeal  or,  or plea of nolo  contendere  by  Executive  to,  any
               felony.

          The cessation of employment of Executive  under  subparagraph  (i) and
          (ii)  above  shall not be deemed to be for  "Cause"  unless  and until
          there shall have been  delivered  a  Executive a copy of a  resolution
          duly adopted by the affirmative  vote of not less than  three-quarters
          (3/4) of the entire  membership of the  Compensation  Committee of the
          Board at a meeting of such Committee  called and held for such purpose
          (after  reasonable  notice is provided to Executive  and  Executive is
          given an  opportunity,  together with counsel,  to be heard before the
          Compensation  Committee of the Board), finding that, in the good faith
          opinion  of the  Compensation  Committee  of the Board,  Executive  is
          guilty of the conduct described in subparagraph (i) or (ii) above, and
          specifying the particulars thereof in detail.

(d)  "Change In Control" shall be deemed to occur if:

     (i)  When any  "person"  or "group"  of persons  (as such terms are used in
          ss.13 and 14 of the  Securities  Exchange Act of 1934, as amended from
          time to time (the  "Exchange  Act")),  other  than the  Company or any
          employee   benefit  plan   sponsored  by  the  Company,   becomes  the
          "beneficial owner" (as such term is used in ss.13 of the Exchange Act)
          of 25  percent  or more of the total  number of the  Company's  common
          shares at the time outstanding; or

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    (ii)  of the approval by the vote of the Company's  stockholders  holding at
          least 50 percent (or such greater percentage as may be required by the
          Certificate  of  Incorporation  or Bylaws of the Company or by law) of
          the voting stock of the Company of any merger, consolidation, sales of
          assets,  liquidation or  reorganization  in which the Company will not
          survive as a publicly owned corporation or;

   (iii)  when the individuals who, at the beginning of any period of two years
          or less,  constituted the Board of Directors of the Company cease, for
          any reason,  to  constitute  at least a majority  thereof,  unless the
          election or nomination  for election of each new director was approved
          by the vote of at least a  majority  of the  directors  then  still in
          office who were directors at the beginning of such period.

     A Change In Control shall not result from any  transaction  precipitated by
     the Company's insolvency,  appointment of a conservator or determination by
     a regulatory agency that the Company is insolvent.

(e)  "Disability"  shall mean circumstances that qualify Executive for long-term
     disability  benefits under the Company's  Long-Term  Disability  Plan as in
     effect immediately prior to the Change In Control.

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(f)  "Effective  Date" with  respect to a Change In Control for purposes of this
     Agreement  shall be the  earliest  to  occur  of (i) the date on which  the
     Company receives a copy of a Schedule 13D disclosing  beneficial  ownership
     of shares in accordance with Section XII,  paragraph (d)(i) above; (ii) the
     effective  date  of the  consummation  of a  merger,  consolidation,  share
     exchange  or  similar  form of  corporate  transaction  or  liquidation  or
     reorganization in accordance with Section XII, paragraph (d)(ii);  or (iii)
     the date of the annual or special meeting of shareholders at which the last
     director  necessary  to meet the  requirements  of Section  XII,  paragraph
     (d)(iii) is elected.  Upon the occurrence of the Effective Date of a Change
     In Control,  the Board of Directors or its designee  shall,  within  thirty
     days thereof,  provide written notice to Executive of the Effective Date of
     the Change In Control.  Notwithstanding  anything  to the  contrary in this
     Agreement, if a Change In Control occurs and if Executive's employment with
     the Company is  terminated  within the ninety  days prior to the  Effective
     Date of the Change In Control as determined  in  accordance  with the first
     sentence of this  paragraph  (f), and if it is reasonably  demonstrated  by
     Executive that such termination of employment was at the request of a third
     party  who has  taken  steps  reasonably  calculated  to effect a Change In
     Control,  or otherwise  arose in connection  with or in  anticipation  of a
     Change In Control, then for all purposes of this Agreement,  the "Effective
     Date" of the Change In Control shall mean the date immediately prior to the
     date of such termination of employment.

(g)  "Good Reason" shall mean:

      (i) the assignment to Executive of duties that are materially inconsistent
          with  Executive's  position,  authority,  duties  or  responsibilities
          immediately prior to the Change In Control, or any other action by the
          Company  which  results in a  material  diminution  in such  position,
          authority, duties or responsibilities;

     (ii) requiring Executive, without his consent, to be based at any office or
          location  other than the  office or  location  a which  Executive  was
          employed  immediately  prior  to  the  Change  In  Control;  provided,
          however,  that any such  relocation  requests shall not be grounds for
          resignation   with  Good  Reason  if  such   relocation  is  within  a
          twenty-mile  radius of the location at which Executive was based prior
          to the Effective Date of a Change In Control;

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    (iii) a reduction in Executive's  Annual Base Salary in effect  immediately
          prior to the Change In Control or a reduction in the target multiplier
          used to  calculate  the annual bonus  awarded to  Executive  below the
          target  multiplier used to calculate the bonus paid to Executive under
          the EICP immediately prior to the Change In Control, provided, however
          that in either  case a  reduction  in the  Annual  Base  Salary or the
          target bonus  multiplier  shall not be  considered  "Good Reason" with
          respect to any year for which such  reduction  is part of a  reduction
          uniformly applicable to all similarly situated employees;

     (iv) a change  in  Executive's  eligibility  to  participate  in  incentive
          compensation  plans as in effect  immediately  prior to the  Change In
          Control; or

      (v) any material  breach of this  Agreement by the Company,  excluding for
          this  purpose an isolated,  insubstantial  or  inadvertent  action not
          taken in bad faith and which is remedied by the Company promptly after
          receipt of notice thereof given by Executive.

     Upon the occurrence of any of the events described  above,  Executive shall
     give the Company written notice that such event constitutes Good Reason and
     the Company  shall  thereafter  have  thirty days in which to cure.  If the
     Company has not cured in that time, the event shall constitute Good Reason.

(h)  "Subsidiaries" shall mean every, limited liability company,  partnership or
     other entity of which 50% or more of the total combined voting power of all
     classes of voting  securities or other equity interests is owned,  directly
     or indirectly, by McDermott International, Inc.

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XIII. Arbitration

     Any  controversy  or claim arising out of or relating to this Agreement (or
     the breach  thereof)  shall be settled by final and binding  arbitration in
     Houston, Texas by one arbitrator selected in accordance with the Commercial
     Arbitration  Rules (the  "Rules") of the American  Arbitration  Association
     (the  "Association") then in effect.  Subject to the following  provisions,
     the  arbitration  shall be conducted in  accordance  with the Rules then in
     effect. Any award entered by the arbitrator shall be final and binding, and
     judgment  may be entered  thereon  by any party  hereto in any court of law
     having  competent   jurisdiction.   This  arbitration  provision  shall  be
     specifically enforceable. The Company and the Executive shall each pay half
     of the  administrative  fees of the Association and the compensation of the
     arbitrator and shall each be responsible  for its or his/her own attorney's
     fees and expenses relating to the conduct of the arbitration.

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

                                           McDERMOTT INTERNATIONAL, INC.

                                           By:__________________________________

                                           Printed Name:________________________

                                           Title:_______________________________

                                           Date:________________________________

                                           Executive:___________________________

                                           Date:________________________________

                                       15Exhibit 10.1

                 THIRD AMENDMENT TO SECOND AMENDED AND RESTATED
                       REVOLVING CREDIT SECURITY AGREEMENT
                       -----------------------------------

         This Third Amendment to Second Amended and Restated Revolving Credit
and Security Agreement (the "Amendment") is made this 28 day of March, 2007, by
and among COMPUDYNE CORPORATION, a Nevada corporation ("CompuDyne"), TIBURON,
INC., a Virginia corporation (formerly known as Compudyne - Public Safety &
Justice, Inc., a Virginia corporation) ("Tiburon"), NORMENT SECURITY GROUP,
INC., a Delaware corporation ("Norment"), NORSHIELD CORPORATION, an Alabama
corporation ("Norshield"), COMPUDYNE - INTEGRATED ELECTRONICS DIVISION, LLC, a
Delaware limited liability company ("CompuDyne Integrated"), CORRLOGIC, LLC, a
Delaware limited liability company ("CorrLogic"), XANALYS CORPORATION, a
Delaware corporation ("Xanalys"), SIGNAMI DCS, LLC, a Delaware limited liability
company ("Signami") FIBER SENSYS, LLC, a Delaware limited liability company
("Fiber") (CompuDyne, Tiburon, Norment, Norshield, Fiber, CompuDyne Integrated,
CorrLogic, Xanalys, Signami and Fiber, each a "Borrower", and collectively
"Borrowers"), the financial institutions which are now or which hereafter become
a party hereto (collectively, the "Lenders" and individually a "Lender") and PNC
BANK, NATIONAL ASSOCIATION ("PNC"), as agent for Lenders (PNC, in such capacity,
the "Agent").

                                   BACKGROUND
                                   ----------

         A. On December 19, 2005, Borrowers, Lenders and Agent entered into,
inter alia, a certain Second Amended and Restated Revolving Credit and Security
Agreement (as same has been or may be amended, modified, renewed, extended,
replaced, or substituted from time to time, the "Loan Agreement"), to reflect
certain financing arrangements between the parties thereto. The Loan Agreement
and all other documents executed in connection therewith are collectively
referred to as the "Existing Financing Agreements." All capitalized terms not
otherwise defined herein shall have the meaning ascribed thereto in the Loan
Agreement. In the case of a direct conflict between the provisions of the Loan
Agreement and the provisions of this Amendment, the provisions hereof shall
prevail.

         B. The Borrowers have requested and the Agent and the Lenders have
agreed to modify the Loan Agreement, subject to the terms and conditions of this
Amendment.

         NOW THEREFORE, with the foregoing background hereinafter deemed
incorporated by reference herein and made part hereof, the parties hereto,
intending to be legally bound, promise and agree as follows:

          A. Amendments to Loan Agreement. Upon the Effective Date, the Loan
Agreement shall be amended as follows:

          1. Definitions. The definition of EBITDA shall be deleted in its
entirety and replaced with the following:

                           "EBITDA" shall mean for any period the sum of (i)
                           Earnings Before Interest and Taxes for such period,
                           plus (ii) depreciation expenses for such period, plus
                           (iii) amortization expenses for such period, plus
                           (iv) to the extent deducted in calculating EBITDA,
                           any non-cash charges against net income required to
                           be recognized in connection with the issuance of
                           Equity Interests to employees or otherwise in
                           accordance with SFAS 123R "Accounting for Stock Based
                           Compensation" promulgated by FASB (whether upon lapse
                           of vesting restrictions, exercise of employee options
                           or otherwise), plus (v) to the extent deducted in
                           calculating EBITDA, any non-cash impairment charge
                           against goodwill and other intangible assets incurred
                           by Tiburon for the fiscal quarter ended December 31,
                           2006.
<PAGE>

          2. Capital Expenditures. As of December 31, 2006, Section 7.6 of the
Loan Agreement is hereby amended and restated in its entirety and replaced with
the following:

                              7.6.      Capital Expenditures. Contract for,
                                        purchase or make any expenditure or
                                        commitments for Capital Expenditures in
                                        any fiscal year in an aggregate amount
                                        for all Borrowers in excess of
                                        $2,500,000.

          3. Subordinated Note and Industrial Revenue Bonds. Section 7.21 of the
Loan Agreement is hereby amended and restated in its entirety and replaced with
the following:

                              7.21      Subordinated Notes and Industrial
                                        Revenue Bonds. At any time, directly or
                                        indirectly, pay, prepay, repurchase,
                                        redeem, retire or otherwise acquire, or
                                        make any payment on account of any
                                        principal of, interest on or premium
                                        payable in connection with the repayment
                                        or redemption of the Subordinated Notes;
                                        provided that (A) if Borrowers'
                                        Unrestricted Undrawn Borrowing Base
                                        Availability plus cash and marketable
                                        securities on hand after giving effect
                                        to such payment is less than Fifteen
                                        Million Dollars ($15,000,000) and no
                                        Default or Event of Default exists or
                                        would exist after giving to any such
                                        payment, Borrowers may pay the regularly
                                        scheduled payments of interest due on
                                        the Subordinated Notes, (B) if
                                        Borrowers' Unrestricted Undrawn
                                        Borrowing Base Availability plus cash
                                        and marketable securities on hand after
                                        giving effect to such payment is equal
                                        to or in excess of Fifteen Million
                                        Dollars ($15,000,000), Borrowers may pay
                                        the regularly scheduled payments of
                                        interest due on the Subordinated Notes
                                        regardless of whether Borrowers are in
                                        compliance with the covenant set forth
                                        in Section 6.5(a) so long as no other
                                        Default or Event of Default exists or
                                        would exist after giving effect to such
                                        payment, and (C) Borrowers may
                                        repurchase or redeem up to a maximum
                                        aggregate amount of $8,000,000 of
                                        Subordinated Notes; provided that, at
                                        the time of, and after giving effect to,
                                        such repurchase or redemption, Borrowers
                                        would be in compliance with the
                                        limitations set forth in Sections
                                        7.21(A) or 7.21(B) above.

<PAGE>

          4. Annual Financial Statements. Section 9.7 is hereby amended and
restated in its entirety and replaced with the following

                           Annual Financial Statements. Other than for fiscal
                           year ending December 31, 2006, which shall be
                           delivered within one hundred twenty (120) days after
                           such year end, furnish Agent within ninety (90) days
                           after the end of each fiscal year of Borrowers,
                           financial statements of Borrowers on a consolidating
                           and consolidated basis including, but not limited to,
                           statements of operations and stockholders' equity and
                           cash flow from the beginning of the current fiscal
                           year to the end of such fiscal year and the balance
                           sheet as at the end of such fiscal year, all prepared
                           in accordance with GAAP applied on a basis consistent
                           with prior practices, and in reasonable detail and
                           reported upon without qualification (except, to the
                           extent applicable, in the case of any qualifications
                           in connection with Section 404 of the Sarbanes-Oxley
                           Act of 2002 related to management's assessment of
                           internal controls) by an Aronson & Co. (the
                           "Accountants"). The report of the Accountants shall
                           be accompanied by a statement of the Accountants
                           certifying that (i) they have caused this Agreement
                           to be reviewed, (ii) in making the examination upon
                           which such report was based either no information
                           came to their attention which to their knowledge
                           constituted an Event of Default or a Default under
                           this Agreement or any related agreement or, if such
                           information came to their attention, specifying any
                           such Default or Event of Default, its nature, when it
                           occurred and whether it is continuing, and such
                           report shall contain or have appended thereto
                           calculations which set forth Borrowers' compliance
                           with the requirements or restrictions imposed by
                           Sections 6.5, 7.4, 7.5, 7.6, 7.7, 7.8 and 7.11
                           hereof. In addition, the reports shall be accompanied
                           by a Compliance Certificate.

          5. Projected Operating Budget. Section 9.12 of the Loan Agreement is
hereby amended and restated in its entirety and replaced with the following:

                           9.12 Projected Operating Budget. Furnish Agent, no
                           later than thirty (30) days prior to the beginning of
                           each Borrower's fiscal years commencing with fiscal
                           year 2007, a quarter by quarter projected operating
                           budget and cash flow of Borrowers on a consolidated
                           and consolidating basis for such fiscal year
                           (including an income statement for each quarter and a
                           balance sheet as of the end of each fiscal quarter),
                           such projections to be accompanied by a certificate
                           signed by the President or Chief Financial Officer of
                           each Borrower to the effect that such projections
                           have been prepared on the basis of sound financial
                           planning practice consistent with past budgets and
                           financial statements and that such officer has no
                           reason to question the reasonableness of any material
                           assumptions on which such projections were prepared.
<PAGE>

          6. Variance From Operating Budget. Section 9.13 of the Loan Agreement
is hereby amended and restated in its entirety and replaced with the following:

                           9.13. Variances From Operating Budget. Furnish Agent,
                           concurrently with the delivery of the financial
                           statements referred to in Section 9.7 and each
                           quarterly report, a written report summarizing all
                           material variances from budgets submitted by
                           Borrowers pursuant to Section 9.12 and a discussion
                           and analysis by management with respect to such
                           variances.

          B. Reaffirmation. Each Borrower hereby:

               1. reaffirms all representations and warranties made to Agent and
Lenders under the Loan Agreement and all of the other Existing Financing
Agreements and confirms that all are true and correct in all material respects
as of the date hereof (except to the extent any such representations and
warranties specifically relate to a different date, in which case such
representations and warranties shall be true and correct in all material
respects on and as of such other specific date);

               2. except to the extent consented to by Agent herein, reaffirms
all of the covenants contained in the Loan Agreement, covenants to abide thereby
until all Advances, Obligations and other liabilities of Borrowers to Agent and
Lenders under the Loan Agreement of whatever nature and whenever incurred, are
satisfied and/or released by Agent and Lenders; and

               3. except as modified by the terms hereof, all of the other terms
and conditions of the Loan Agreement, as amended, and all other of the Existing
Financing Agreements are hereby reaffirmed and shall continue in full force and
effect as therein written.

          C. Representations and Warranties. Each Borrower hereby:

               1. represents and warrants that no Default or Event of Default
has occurred and is continuing under any of the Existing Financing Agreements;

               2. except as modified hereby, represents and warrants that it has
the authority and legal right to execute, deliver and carry out the terms of
this Amendment, that such actions were duly authorized by all necessary
corporate or limited liability company action and that the officers executing
this Amendment on its behalf were similarly authorized and empowered, and that
this Amendment does not contravene any provisions of its articles of
incorporation or by-laws, or certificate of formation or operating agreement, as
applicable, or other formation documents, or of any contract or agreement to
which it is a party or by which any of its properties are bound; and

<PAGE>

               3. represents and warrants that this Amendment and all
assignments, instruments, documents, and agreements executed and delivered in
connection herewith, are valid, binding and enforceable in accordance with their
respective terms.

          D. Conditions Precedent/Effectiveness Conditions. This Amendment shall
be effective upon Agent's receipt of this Amendment fully executed by Borrowers
("Effective Date").

          E. Further Assurances. Each Borrower hereby agrees to take all such
actions and to execute and/or deliver to Agent and Lenders all such documents,
assignments, financing statements and other documents, as Agent and Lenders may
reasonably require from time to time, to effectuate and implement the purposes
of this Amendment.

          F. Release. As further consideration for Agent's and Lender's
agreement to enter into this Amendment, each Borrower hereby waives and releases
and forever discharges Agent, Lender and their officers, directors, attorneys,
agents and employees from any liability, damage, claim, loss or expense of any
kind that such Borrower may now or hereafter have against Agent or Lender
arising out of or relating to the Obligations, the Loan Agreement as amended, or
the other Existing Financing Agreements.

          G. Payment of Expenses. Borrowers shall pay or reimburse Agent and
Lenders for its reasonable attorneys' fees and expenses in connection with the
preparation, negotiation and execution of this Amendment and the documents
provided for herein or related hereto.

          H. Confirmation of Obligations. Borrowers' confirm and acknowledge
that as of the close of business on February 26, 2007, the outstanding
Obligations consist of (i) $0 of Revolving Advances, (ii) issued and outstanding
Letters of Credit in the Maximum Undrawn Amount equal to $3,169,035.61 and (iii)
all fees, costs and expenses incurred to date in connection with the Loan
Agreement and the Other Loan Documents.

          I. Miscellaneous.

               1. Third Party Rights. No rights are intended to be created
hereunder for the benefit of any third party donee, creditor, or incidental
beneficiary.

               2. Headings. The headings of any paragraph of this Amendment are
for convenience only and shall not be used to interpret any provision hereof.

               3. Modifications. No modification hereof or any agreement
referred to herein shall be binding or enforceable unless in writing and signed
on behalf of the party against whom enforcement is sought.

               4. Governing Law. The terms and conditions of this Amendment
shall be governed by the laws of the Commonwealth of Pennsylvania.

               5. Counterparts. This Amendment may be executed in any number of
counterparts and by facsimile or PDF, 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.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Amendment to be
executed and delivered by their duly authorized officers as of the date first
above written.

BORROWERS:                COMPUDYNE CORPORATION

                          By:      /s/ Geoffrey F. Feidelberg
                             --------------------------------------------------
                          Name:    Geoffrey F. Feidelberg
                               ------------------------------------------------
                          Title:   Chief Financial Officer, Treasurer
                                -----------------------------------------------

                          TIBURON, INC.

                          By:      /s/ Geoffrey F. Feidelberg
                             --------------------------------------------------
                          Name:    Geoffrey F. Feidelberg
                               ------------------------------------------------
                          Title:   Treasurer, Vice President
                                -----------------------------------------------

                          NORSHIELD CORPORATION

                          By:      /s/ Geoffrey F. Feidelberg
                             --------------------------------------------------
                          Name:    Geoffrey F. Feidelberg
                               ------------------------------------------------
                          Title:   Treasurer, Vice President
                                -----------------------------------------------

                          COMPUDYNE - INTEGRATED ELECTRONICS DIVISION, LLC

                          By:      /s/ Geoffrey F. Feidelberg
                             --------------------------------------------------
                          Name:    Geoffrey F. Feidelberg
                               ------------------------------------------------
                          Title:   Vice President
                                ------------------------------------------------

                          CORRLOGIC, LLC

                          By:      /s/ Geoffrey F. Feidelberg
                             --------------------------------------------------
                          Name:    Geoffrey F. Feidelberg
                               ------------------------------------------------
                          Title:   Treasurer, Vice President
                                -----------------------------------------------

                          NORMENT SECURITY GROUP, INC.

                           By:      /s/ Geoffrey F. Feidelberg
                              --------------------------------------------------
                           Name:    Geoffrey F. Feidelberg
                                ------------------------------------------------
                           Title:   Treasurer, Vice President
                                 -----------------------------------------------

          [Signature Page 1 of 2 (Third Amendment To Second Amended And
                 Restated Revolving Credit Security Agreement)]

<PAGE>

                     XANALYS CORPORATION

                     By:      /s/ Geoffrey F. Feidelberg
                        --------------------------------------------------
                     Name:     Geoffrey F. Feidelberg
                        ------------------------------------------------
                     Title:   Treasurer, Vice President

                     SIGNAMI DCS, LLC

                     By:      /s/ Geoffrey F. Feidelberg
                        --------------------------------------------------
                     Name:    Geoffrey F. Feidelberg
                          ------------------------------------------------
                     Title:   Vice President
                           -----------------------------------------------

                     FIBER SENSYS, LLC

                     By:      /s/ Geoffrey F. Feidelberg
                        --------------------------------------------------
                     Name:    Geoffrey F. Feidelberg
                          ------------------------------------------------
                     Title:   Treasurer, Vice President
                           -----------------------------------------------

AGENT AND LENDER:                   PNC BANK, NATIONAL ASSOCIATION,
                                    as Lender and as Agent

                                    By:      /s/ James P Sierakowski
                                       -----------------------------------------
                                          James P. Sierakowski, Vice President

          [Signature Page 2 of 2 (Third Amendment To Second Amended And
                 Restated Revolving Credit Security Agreement)]

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