Document:

exv10w5

 

Exhibit 10.5

THIRD AMENDMENT TO LOAN AGREEMENT

     This
THIRD AMENDMENT TO LOAN AGREEMENT (the “Third
Amendment”), dated as of the 31 day of March, 2005, is made by and between HORIZON VESSELS INTERNATIONAL, LTD.
(“Borrower”), and GENERAL ELECTRIC CREDIT CORPORATION OF TENNESSEE (“Lender”).

W I T N E S S E T H:

     WHEREAS, Borrower and Boeing Capital Corporation (“Boeing”) entered into that certain Loan
Agreement dated as of June 30, 2003 (as the same has been or may hereafter be amended, supplemented
or otherwise modified, the “Loan Agreement”), pursuant to which Borrower agreed to borrow,
and Boeing agreed to lend, upon and subject to the terms thereof, up to the aggregate principal
amount of $35,000,000 (the “Loan”);

     WHEREAS, pursuant to the Purchase and Sale Agreement among Boeing, BCC Equipment Leasing
Corporation, McDonnell Douglas Overseas Finance Corporation, Boeing Capital Loan Corporation and
General Electric Capital Corporation, dated as of May 24, 2004, the Lender purchased the Loan
Agreement; and

     WHEREAS, the parties now desire to modify further certain of the terms and conditions
contained in the Loan Agreement.

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

     1. Capitalized terms used in this Third Amendment (including the recitals hereof) shall have
the meanings assigned to them in the Loan Agreement, as amended by this Third Amendment.

     2. The Loan Agreement is hereby amended by amending and restating the following definition in
its entirety:

     “Tangible Net Worth” means, at any particular date, all amounts which, in conformity with
GAAP, would be included as stockholder’s equity on a consolidated balance sheet of the Parent and
its subsidiaries, including without limitation adjustments for the addition of paid-in-kind
interest, discounts and warrant amortization on Subordinated Debt; provided, however, there shall
be excluded therefrom (a) any amount at which shares of capital stock of the Parent or any
subsidiary appear as an asset on the Parent’s or such subsidiary’s balance sheet, (b) goodwill,
including any amount, however designated, that represents the excess of purchase price paid for
assets or stock over the value assigned thereto, (c) patents, trademarks, trade names, and
copyrights, (d) loans and advances to any stockholder, director, officer, or employee of the Parent
or any subsidiary or any affiliate, and (e) all other assets which are properly

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classified as intangible assets; provided further that non-cash losses due to asset impairment may
be added back to the calculation of Tangible Net Worth.

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

     4. Borrower hereby represents and warrants to Lender that each of the representations and
warranties of Borrower contained in the Note, Loan Agreement and each of the other Loan Documents
to which it is a party are true, correct and complete as of the date hereof and apply to the
execution and delivery of this Third Amendment and any other documents executed in connection
herewith.

     5. Borrower hereby acknowledges, confirms and warrants to Lender that as of the date of this
Third Amendment, it has no defenses, claims, rights of set-off or counterclaims against Lender
under, arising out of, or in connection with this Third Amendment, the Loan, the Loan Agreement or
the other Loan Documents to which it is a party or against any of the indebtedness evidenced,
advanced or secured thereby, any and all of which Borrower hereby expressly waives.

     6. In consideration of Lender executing this Third Amendment, Borrower hereby unconditionally
and irrevocably fully releases, acquits, settles, and discharges any and all claims,
counterclaims, liabilities, damages, defenses, demands and causes of action that Borrower have or
may have against Lender, its respective officers, directors, trustees, agents, employees,
attorneys, successors and assigns (collectively, the “Released Parties”), whether or not
acting in their official capacity with respect to the Lender, in their personal capacity or in any
other capacity, related to or that may have arisen, may arise or are or become assertable as a
result of events occurring in connection with the Loan and the Loan Documents, together with any
and all negotiations, discussions, acts, omissions, renewals, extensions, collateral documents,
and other agreements and actions related thereto, including any claims, causes of action or
defenses based on the negligence of Lender or any of the Released Parties or on any other “lender
liability” theories of, among others, bad faith, unfair dealing, duress, coercion, control,
misrepresentation, omissions, misconduct, overreaching, unconscionability, disparate bargaining
position, reliance, equitable subordination, fraud, or otherwise, and do hereby intend to release,
compromise and settle and such claims and matters, whether known or unknown, whether reduced to
judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed,
legal, equitable, secured or unsecured and whether they arose collaterally, directly, derivatively
or otherwise between Borrower and the Released Parties from the beginning of the world to and
including the date of this Amendment (collectively the “Released Claims”). Borrower
hereby represents and warrants to Lender that Borrower is presently the legal owner and holder of
any and all of the Released Claims and that Borrower has not heretofore expressly or impliedly
assigned, transferred, pledged, hypothecated sold, conveyed or otherwise disposed of, for the
benefit of creditors or otherwise, any of the Released Claims.

     7. Borrower acknowledges and agrees that the Mortgage constitutes a valid first lien upon the
mortgaged property in favor of Lender and that the Loan Documents constitute valid and binding
agreements of obligations of the parties thereto with respect to the Loan. The

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mortgaged property is and shall remain subject to and encumbered by the lien, charge and
encumbrance of the Mortgage and nothing herein shall affect or be construed to affect the lien,
charge or encumbrance of the Mortgage or the priority hereof over other liens or encumbrances.
Borrower acknowledges and agrees that the Mortgage constitutes and continues to be a valid first
mortgage lien and security interest upon the mortgaged property in favor of Lender, subject only
to permitted encumbrances as provided in the Loan Agreement and the Consent Under 2003 Loan
Agreement executed contemporaneously herewith. Nothing herein is intended to, nor shall it,
constitute a novation of the indebtedness secured by the Mortgage or other Loan Documents.

     8. This Third Amendment shall inure to the benefit of, and shall be binding upon, the parties
hereto and their respective successors and permitted assigns under the Loan Agreement.

     9. Each party hereto agrees promptly to do, make, execute and deliver all such additional and
further acts, things, deeds, assurances, instruments and documents as the other party may
reasonably request to vest in and assure to the requesting party its rights (and/or to confirm the
agreements and obligations of the non-requesting party) hereunder or under any of the Loan
Documents. Without limitation of the foregoing, each party agrees to provide such assurances
concerning the effectiveness of this Third Amendment as the other party may reasonably request.

     10. This Third Amendment may be executed in multiple counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same instrument.

     11. Borrower and each Guarantor signatory hereto hereby acknowledge and reaffirm all of their
obligations and undertakings under the Loan Documents to which they are a party and that each such
Loan Document is and shall remain in full force and effect in accordance with the terms thereof
and is not related, diminished, impaired, reduced or otherwise adversely affected.

[Remainder of page intentionally left blank.]

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

	 	 	 	 	 	 	 
	BORROWER:	 	LENDER:
	 
	 	 	 	 	 	 
	HORIZON VESSELS INTERNATIONAL, LTD.	 	GENERAL ELECTRIC CREDIT CORPORATION OF TENNESSEE
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	

	 	

	 	 	 	

	Name:

	 	 	 	Name:	 	 
	Title:

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	GUARANTORS:	 	 	 	 
	 
	 	 	 	 	 	 
	HORIZON OFFSHORE, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	

	 	
	 	 	 	 
	Name:
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	HORIZON VESSELS, INC.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	

	 	
	 	 	 	 
	Name:
	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 

4exv10w6

 

Exhibit 10.6

AMENDMENT NO. 1 TO RIGHTS AGREEMENT

      This Amendment No. 1 to Rights Agreement (this “Amendment”) is dated and effective as of March
30, 2005, by and between Horizon Offshore, Inc., a Delaware corporation (the “Company”), and Mellon
Investor Services, LLC., as Rights Agent (“Mellon”).

W I T N E S S E T H:

      WHEREAS, the Company entered into that certain Rights Agreement, dated January 11, 2002 (the
“Rights Agreement”), by and between the Company and Mellon, as Rights Agent;

      WHEREAS, on March 29, 2005, the Board of Directors of the Company authorized the Company to
enter into a Restructuring Letter Agreement (the “Restructuring Agreement”) with and the holders of
the Company’s 16% and 18% Subordinated Secured Notes due March 31, 2007 (the “Subordinated Notes”)
and outstanding shares of Company’s Series A Redeemable Participating Preferred Stock, $1.00 per
value per share (the “Preferred Stock”), pursuant to which the Subordinated Notes and shares of
Preferred Stock will be exchanged for the Company’s common stock and mandatorily convertible
redeemable preferred stock; and

      WHEREAS, pursuant to Section 27 of the Rights Agreement, the Company and the Rights Agent
desire to amend the definition of Acquiring Person in Section 1 of the Rights Agreement to ensure
that the transactions consummated pursuant to the Restructuring Agreement do not cause a Triggering
Event under the Rights Agreement;

      NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth herein
and in the Rights Agreement, the parties hereby agree as follows:

      1. Capitalized terms used but not defined herein shall have the meanings assigned to such
terms in the Rights Agreement.

      2. The definition of Acquiring Person in Section 1 of the Rights Agreement is hereby amended,
such that, as amended, it shall read in its entirety as follows:

      “Acquiring Person” means any Person who, together with all Affiliates and Associates
of such Person, is the Beneficial Owner of the Threshold Percentage or more of the shares
of Common Stock then outstanding, but shall not include an Exempt Person; provided,
however, that (a) if the Board determines in good faith that a Person who would otherwise
be an Acquiring Person has become the Beneficial Owner of a number of shares of Common
Stock such that the Person would otherwise qualify as an Acquiring Person inadvertently
(including, without limitation, because (i) such Person was unaware that it beneficially
owned a percentage of Common Stock that would otherwise cause such Person to be an

 

 

Acquiring Person or (ii) such Person was aware of the extent of its Beneficial Ownership of
Common Stock but had no actual knowledge of the consequences of such Beneficial Ownership
under this Agreement) and without any intention of changing, exercising or influencing
control of the Company, then such Person shall not be deemed to be or to have become an
Acquiring Person for any purposes of this Agreement unless and until such Person shall have
failed to divest itself as soon as practicable (as determined, in good faith, by the Board
of Directors of the Company) of Beneficial Ownership of a sufficient number of shares of
Common Stock so that such Person would no longer otherwise qualify as an Acquiring Person;
and (b) no Person shall become an Acquiring Person as the result of any acquisition of
shares of Common Stock by the Company which, by reducing the number of shares of Common
Stock outstanding, increases the proportionate number of shares of Common Stock
beneficially owned by such Person to the Threshold Percentage or more of the shares of
Common Stock then outstanding; provided, however, that if a Person shall become the
Beneficial Owner of the Threshold Percentage or more of the shares of Common Stock then
outstanding by reason of such share acquisition by the Company and shall thereafter become
the Beneficial Owner of any additional shares of Common Stock (other than pursuant to a
dividend or distribution paid or made by the Company on the outstanding Common Stock or
pursuant to a split or subdivision of the outstanding Common Stock), then such Person shall
be deemed to be an Acquiring Person unless upon becoming the Beneficial Owner of such
additional shares of Common Stock such Person does not beneficially own the Threshold
Percentage or more of the shares of Common Stock then outstanding. Notwithstanding
anything contained herein to the contrary, no party to the Restructuring Agreement or any
of such party’s respective Affiliates or Associates shall be deemed to be an Acquiring
Person.

      3. Except as amended hereby, the Rights Agreement and all exhibits thereto shall remain in
full force and effect.

      4. This Amendment may be executed in multiple counterparts and each such counterpart shall for
all purposes be deemed an original, and all such counterparts shall together constitute one and the
same instrument.

      IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed in their
names and on their behalf by and through their duly authorized officers, effective as of the date
first above written.

	 	 	 	 	 	 	 
	HORIZON OFFSHORE, INC.	 	MELLON INVESTOR SERVICES, LLC
	 	 	 	 	 	 	 
	/s/ David W. Sharp
	 	/s/ Deanna Akin
	 
	 	 
	By:

	 	David W. Sharp
	 	By:
	 	Dianna Akin
	Title:

	 	Executive Vice President and

Chief Financial Officer
	 	Title:
	 	Client Relationship Executive

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