Document:

Atwood Oceanics, Inc. Retention Plan for Certain Salaried Employees

 EXHIBIT 10.8 

 
  

ATWOOD OCEANICS, INC. 
 RETENTION PLAN 
 FOR CERTAIN SALARIED EMPLOYEES 

 
  

Effective as of January 1, 2012 
 This Plan will terminate automatically 
 as of December 31, 2012 if
there is no “Effective Date” 
 (as defined in Plan Section 1.5) on or before that date. 

 ATWOOD OCEANICS, INC. 

RETENTION PLAN 
 FOR CERTAIN SALARIED EMPLOYEES 
 The Company (as
defined herein) hereby adopts this Retention Plan for Certain Salaried Employees (the “Plan”), effective as of the 1st day of January, 2012. 
 INTRODUCTION 
 The purpose of this Plan is to secure the interests of the
Company’s shareholders in the event of a change of control of the Company. In such an event, this Plan would provide an enhanced severance payment and other benefits to encourage certain valued employees to remain employed with the Company
during that period of financial uncertainty preceding and following the change of control. If such an event does not occur on or before December 31, 2012, this Plan will terminate automatically, unless otherwise renewed by the Company’s
Board of Directors. 
 ARTICLE I 
 DEFINITIONS 
 Terms defined above and initially capitalized shall have the
respective meanings so ascribed. When used in this Plan and initially capitalized, the following words and phrases shall have the following respective meanings unless the context clearly requires otherwise: 

1.1 “Base Salary” as to any Covered Employee for any period, shall mean the greater of the sum of such
individual’s monthly base salary and Bonus as of the Termination of Employment or as of the date immediately preceding the Effective Date, which is paid to such individual by the Company during employment for such period, before reduction
because of an election between benefits or cash provided under a plan of the Company maintained pursuant to Section 125 or 401(k) of the Internal Revenue Code of 1986, as amended, and before reduction for any other amounts contributed by the
Company on such individual’s behalf to any other employee-benefit plan. 
 1.2 “Bonus” as to
Covered Employee for any period, shall mean the average of bonus payments, if any, made over the preceding three years, including any year for which a bonus has been awarded but not paid, divided by twelve. If the Covered Employee has not been an
employee of the Company for at least three years, then Bonus shall be calculated over the period for which the employee has been employed with the Company. 
 1.3 “Company” shall mean Atwood Oceanics, Inc., a Texas corporation, or any entity that is a successor to it in ownership of substantially all its assets and their affiliates
(“Atwood”) and its direct and indirect subsidiaries. 
 1.4 “Covered Employee” shall mean an
employee described in Article II of the Plan. 
 1.5 “Effective Date” shall mean the date on or before
December 31, 2012, on which any of the following is effective: 
  

	 	(a)	The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”)) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty percent (20%) or more of either (i) the then outstanding shares of
common stock of Atwood or (ii) the combined voting power of the then outstanding voting securities of Atwood entitled to vote generally in the election of directors; provided, however, that the following acquisitions shall not constitute a
Change of Control: (i) any acquisition directly from Atwood; (ii) any acquisition by Atwood; (iii) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company; or 

  
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	 	(b)	Atwood shall sell substantially all of its assets to another corporation which is not a wholly owned subsidiary; or 

 

	 	(c)	Individuals who, as of the date hereof, constitute the Board of Atwood (the “Incumbent Board”) cease for any reason to constitute at least a majority
of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or nomination for election by Atwood’s shareholders, was approved by a vote of at least a majority of the directors then
comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board. 

1.6 “Employment Year” shall mean a period which commences on the first date of employment or any anniversary of
such date and ends one year from such date. 
 1.7 “Good Cause” shall mean a material violation of a
Company policy or procedure applicable to employees in the same or similar job position, the willful disregard or failure to follow the reasonable instructions of a superior, the taking of any action, or the failure to take any action, which results
in a damage or detriment to the Company, or the conviction of an employee of a felony involving moral turpitude. 
 1.8
“Health and Life Benefits” shall mean as to any employee, the group-health and life-insurance benefits sponsored by the Company for its full-time employees and provided to or elected by such individual as of the date immediately
preceding the Effective Date. 
 1.9 “Other Severance” shall have the meaning set forth in
Section 2.2 of the Plan. 
 1.10 “Severance Pay” shall mean the sum payable to a Covered Employee
upon Termination of Employment as set forth in Section 3.1 of the Plan. 
 1.11 “Term” shall mean
the period commencing on the Effective Date and ending one year after that date. 
 1.12 “Termination of
Employment” shall mean a termination of employment with the Company at the option of the Company for any reason, except a termination of employment for Good Cause shall not mean a Termination of Employment. 

1.13 “Years of Continuous Service” shall mean, as to any employee, all full or partial years during which he was
employed on a full-time basis by the Company. 
 ARTICLE II. 

COVERED EMPLOYEES 
 2.1 Who is a Covered Employee. Any employee of the Company who upon the occurrence of an Effective Date, shall be listed in Schedule 3.1 hereto, which Schedule 3.1 shall be amended from time
to time by the Company, and who has a Termination of Employment during the Term shall be a Covered Employee and eligible to receive the benefits described in this Plan. 
 2.2 Exclusions. Any employee who otherwise is a Covered Employee but who, pursuant to a separate agreement signed on behalf of the Company, receives severance or other salary continuation
benefits upon a Termination of Employment (other than payments or benefits under the Company’s Executive Life Insurance Plan) shall not be a Covered Employee under this Plan. This Plan shall be in lieu of any plan, program, policy or practice
of or contract or agreement with the Company relating to severance of employment (“Other Severance”) and any and all benefits of payments arising out of or relating to Other Severance shall be fully offset against any benefits or
payments due and owing hereunder. 

  
 3 

 ARTICLE III 
 SEVERANCE PAY AND OTHER BENEFITS 
 3.1 Amount of Severance
Pay. The Company shall pay Severance Pay to a Covered Employee upon a Termination of Employment in an amount equal to the greater of (a) or (b): 
  

	 	(a)	such individual’s weekly Base Salary multiplied by such individual’s Years of Continuous Service; or 

 

	 	(b)	a payment, depending upon the category of employee as identified in Schedule 3.1 hereto, as follows: 

 

			
	 Category of Employee
	  	 Payment

		
	 Houston Management A:
	  	(i) Less than 4 Years of Continuous Service - 6 months’ Base Salary; or
		
		  	(ii) 4 Years but less than 8 Years of Continuous Service - 12 months’ Base Salary; or
		
		  	(iii) 8 or greater Years of Continuous Service - 18 months’ Base Salary
		
	 Houston Management B,

Houston Technical,

Rig Management and

Other Administration:
	  	(i) Less than 4 Years of Continuous Service - 1 month Base Salary; or
		
		  	(ii) 4 Years but less than 8 Years of Continuous Service - 4 months’ Base Salary; or
		
		  	(iii) 8 Years but less than 12 Years of Continuous Service - 8 months’ Base Salary; or
		
		  	(iv) 12 or greater Years of Continuous Service - 12 months’ Base Salary
		
	 Houston Accounting A, Houston

Accounting B and
 Houston Staff:
	  	(i) Less than 4 Years of Continuous Service - 1 month Base Salary; or
		
		  	(ii) 4 Years but less than 8 Years of Continuous Service - 3 months’ Base Salary; or
		
		  	(iii) 8 or greater Years of Continuous Service - 6 months’ Base Salary

  
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 3.2 Health and Life Benefits. Upon a Termination of Employment, a Covered
Individual’s Health and Life Benefits shall be treated as follows: 
  

	 	(a)	Upon a Termination of Employment and if applicable, the Company will notify each Covered Employee of the right to elect to continue any Company-provided health or
disability benefits, all in accordance with and subject to the provisions of the Consolidated Omnibus Budget Reconciliation Act (“COBRA”). The Company shall charge the maximum allowable premium in connection with any COBRA benefits
so provided. Other than the benefits provided under COBRA, the Company shall have no further obligation to provide health or disability insurance benefits to any Covered Individual following a Termination of Employment. 

 

	 	(b)	Upon written request by a Covered Individual within five (5) days of a Termination of Employment, the Company shall assign any life, salary continuation or travel
insurance plans or policies to such Covered Individual which by their terms are so assignable, and such Covered Individual will thenceforth become responsible for the payment of any premiums required to maintain said plans or policies from and after
the date of Termination of Employment; otherwise, the Company will cease to continue such life insurance plans or policies on behalf of any Covered Employee effective as of the date of Termination of Employment. 

3.3 Payment for Unused Vacation. Upon a Termination of Employment, the Company will pay a Covered Employee an amount equal
to such individual’s weekly Base Salary multiplied by each full and partial week of vacation, which was accrued but unused during the Employment Year in which occurred such individual’s Termination of Employment. For purposes of
determining payment under this Section 3.3, a full week of vacation consists of five (5) vacation days. 
 ARTICLE
IV 
 DISTRIBUTION OF CASH PAYMENTS 
 The Company shall pay a Covered Employee the amount to which he or she is entitled under (as applicable) Plan Section 3.1 (relating to Severance Pay) and Plan Section 3.3 (relating to Payment
for Unused Vacation) in one lump sum within a reasonable time, but in no event greater than ten (10) business days, after such Covered Employee’s Termination of Employment. 

ARTICLE V 

ADMINISTRATION OF PLAN 
 5.1 In General. The Plan shall be administered by Atwood, which shall be the named fiduciary under the Plan. Atwood may delegate any of its administrative duties, including without
limitation duties with respect to the processing, review, investigation, approval, and payment of benefits under the Plan, to a named administrator or administrators. 
 5.2 Regulations. Atwood shall promulgate any rules and regulations that it deems necessary to carry out the purposes of the Plan, or to interpret the terms and conditions of the Plan;
provided that no rule, regulation, or interpretation shall be contrary to the provisions of the Plan. The rules, regulations, and interpretations made by the Atwood shall, subject only to the claims procedure outlined in Section 5.3 hereof, be
final and binding on any employee or former employee of the Company, or any successor in interest of either. 
 5.3 Claims
Procedure. The Company shall determine the rights of any employee or former employee of the Company to any benefits hereunder. Any employee or former employee of the Company who believes that he is entitled to receive any benefits other than
as initially determined by the Company, may file a claim in writing with Atwood’s President. Atwood shall no later than ninety (90) days after the receipt of a claim either allow or deny the claim in writing. 

  
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 A denial of a claim, wholly or partially, shall be written in a manner calculated to be
understood by the claimant and shall include: 
  

	 	(a)	the specific reason or reasons for the denial; 

  

	 	(b)	specific reference to pertinent Plan provisions on which the denial is based; 

 

	 	(c)	a description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is
necessary; and 

  

	 	(d)	an explanation of the claim-review procedure. 

 A claimant whose claim is denied (or his duly authorized representative), may within 30 days after receipt of denial of his claim: 

 

	 	(a)	request a review upon written application to the Company’s personnel administrator; 

 

	 	(b)	review pertinent documents; and 

  

	 	(c)	submit issues and comments in writing. 

 Atwood shall notify the claimant of its decision on review within sixty (60) days after receipt of a request for review. Notice of the decision on review shall be in writing. 

5.4 Revocability of Company Action. Any action taken by Atwood with respect to the rights under the Plan of any employee or
former employee shall be revocable by Atwood as to payments or distributions not yet made to such person, and acceptance of any benefits under the Plan constitutes acceptance of and agreement to any appropriate adjustments made by the Company in
future payments or distributions to such person to offset any excess of underpayment previously made to him with respect to any benefits. 
 ARTICLE VI 
 AMENDMENT OR TERMINATION OF PLAN 

6.1 Right to Amend or Terminate. Atwood reserves the right at any time prior to the Effective Date, and without prior or
other approval of any employee or former employee, to change, modify, amend, or terminate the Plan. All such changes, modifications, or amendments may be retroactive to any date up to and including the original effective date of the Plan, and shall
be retroactive to that date unless other provision is specifically made; provided that no such change, modification, or amendment shall adversely affect any benefit under the Plan previously paid or provided to a Covered Employee (or his or her
successor in interest). 
 6.2 Automatic Termination. This Plan shall terminate automatically as of
December 31, 2012, or such other extended termination date duly adopted in accordance with the provisions of Section 6.1 above, if there is no Effective Date on or before that date. Termination pursuant to this Plan Section 6.2 shall
occur without any action on the part of the Company and shall be effective without prior notice to or approval of any employee or former employee of the Company. 
 ARTICLE VII 
 METHOD OF FUNDING 

The Company shall pay benefits under the Plan from current operating funds. No property of the Company is or shall be, by reason of this
Plan, held in trust for any employee of the Company, nor shall any person have any interest in or any lien or prior claim upon any property of the Company by reason of the Plan or the Company’s obligations to make payments hereunder.

 ARTICLE VIII 
 LEGAL FEES AND EXPENSES; ENFORCEMENT 
 It is the intent of the Company that
no Covered Employee be required to incur the expenses associated with the enforcement of his rights under this Plan by litigation or other legal action because the cost and expense thereof would substantially detract from the benefits intended to be
extended to a Covered Employee hereunder. 

  
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Accordingly, if it should appear to a Covered Employee that the Company has failed to comply with any of its obligations under this Plan or in the event that the Company or any other person takes
any action inconsistent with the terms of this Plan to declare this Plan void or unenforceable, or institutes any litigation designed to deny, or to recover from, the Covered Employee the benefits intended to be provided to such Covered Employee
hereunder, the Company irrevocably authorizes such Covered Employee from time to time to retain counsel of his choice, at the expense of the Company as thereafter provided, to represent such Covered Employee in connection with the initiation or
defense of any litigation or other legal action, whether by or against the Company or any director, officer, stockholder, or other person affiliated with the Company in any jurisdiction. Notwithstanding any existing prior attorney-client
relationship between the Company and such counsel, the Company irrevocably consents to such Covered employee’s entering into an attorney-client relationship with such counsel, and in that connection the Company and such Covered Employee agree
that a confidential relationship shall exist between such Covered Employee and such counsel. The Company shall pay and be solely responsible for any and all attorneys’ and related fees and expenses incurred by such Covered Employee as a result
of the Company’s failure to perform under this Plan or any provision thereof; or as a result of the Company or any person contesting the validity or enforceability of this Plan or any provision thereof. 

ARTICLE IX 

MISCELLANEOUS 
 9.1 Limitation on Rights. Participation in the Plan shall not give any employee the right to be retained in the service of the Company or any rights to any benefits whatsoever, except to the
extent specifically set forth herein. Unless otherwise agreed in writing, employment with the Company is “at will.” 

9.2 Headings. Headings of Articles and Sections in this instrument are for convenience only, and do not constitute any part
of the Plan. 
 9.3 Gender and Number. Unless the context clearly indicates otherwise, the masculine gender when
used in the Plan shall include the feminine, and the singular number shall include the plural and the plural number the singular. 

EXECUTED as of the date first set forth above. 

 

			
	ATWOOD OCEANICS, INC.
		
	By:	 	/s/ Walter A. Baker

 
			
	Name:  Walter A. Baker

 
			
		 	Title:  Vice President, General Counsel and Corporate Secretary

  
 7EX-10.1

 Exhibit 10.1 
 FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT 

This FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is entered into as of
February 6, 2012 by and among INSTEEL WIRE PRODUCTS COMPANY, a North Carolina corporation (“Borrower”), the other Credit Parties signatory hereto, GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (in its individual
capacity, “GE Capital”), for itself, as Lender, and as Agent for Lenders, and the other Lenders signatory hereto. Unless otherwise specified herein, capitalized terms used in this Amendment shall have the meanings ascribed to them
in the Credit Agreement (as hereinafter defined). 
 R E C I T A L S: 

WHEREAS, Borrower, the other Credit Parties, the Agent and the Lenders entered into that certain Second Amended and Restated Credit
Agreement dated as of June 2, 2010 (as amended, supplemented, restated or otherwise modified from time to time, the “Credit Agreement”); 
 WHEREAS, Borrower has requested that the Agent and the Lenders amend certain provisions of the Credit Agreement as set forth herein; and. 

WHEREAS, the Agent and the Lenders have agreed to amend certain provisions of the Credit Agreement as set forth herein, in each case upon
terms and subject to conditions set forth hereon. 
 NOW, THEREFORE, in consideration of the premises contained herein, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 1 Amendments to Credit Agreement. The Credit Agreement is hereby amended as follows: 
 1.1 Section 1.3(b)(ii) of the Credit Agreement is amended by replacing the phrase “so long as no Event of Default has occurred and is continuing and Liquidity is at least
$10,000,000” appearing therein with the phrase “so long as no Event of Default has occurred and is continuing and Liquidity is at least $13,500,000”. 
 1.2 Section 1.5(a) of the Credit Agreement is amended and restated to read in its entirety as follows: 
 “(a) Borrower shall pay interest to Agent, for the ratable benefit of Lenders in accordance with the various Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at
the Index Rate plus the Applicable Revolver Index Margin per annum or, at the election of Borrower, the applicable LIBOR Rate plus the Applicable Revolver LIBOR Margin per annum. 

 (A) As of the First A&R Closing Date, the Applicable Margins are as
follows: 
  

					
	 Applicable Revolver Index Margin
	  	 	0.00	% 
	 Applicable Revolver LIBOR Margin
	  	 	1.25	% 
	 Applicable L/C Margin
	  	 	1.25	% 
	 Applicable Unused Line Fee Margin
	  	 	0.375	% 

 At all times from and after the First A&R Closing Date until (but excluding) the Closing Date, the
Applicable Margins shall be adjusted by reference to the following grids: 
  

			
	 If Reference Availability is:
	  	 Level of
 Applicable Margins:

	 >$35,000,000
	  	Level I
	 > $25,000,000, but £$35,000,000
	  	Level II
	 > $15,000,000, but £$25,000,000
	  	Level III
	 £$15,000,000
	  	Level IV

  

									
	 	  	 Applicable Margins

	 	  	Level I	 	Level II	 	Level III	 	Level IV
	 Applicable Revolver Index Margin
	  	0.00%	 	0.00%	 	0.25%	 	0.50%
	 Applicable Revolver LIBOR Margin
	  	1.25%	 	1.50%	 	1.75%	 	2.00%
	 Applicable L/C Margin
	  	1.25%	 	1.50%	 	1.75%	 	2.00%
	 Applicable Unused Line Fee Margin
	  	0.375%	 	0.375%	 	0.25%	 	0.25%

 Adjustments in the Applicable Margins commencing with the Fiscal Quarter ending on or about
December 31, 2005 shall be implemented quarterly on a prospective basis, commencing on the first day of the calendar month that begins after the date of delivery to Lenders of the Compliance Certificate delivered to Agent and Lenders pursuant
to paragraph (b) of Annex E with respect to a Fiscal Quarter evidencing the need for an adjustment. Concurrently with the delivery of such Compliance Certificate, Borrower shall deliver to Agent and Lenders a certificate, signed
by its chief financial officer, setting forth in reasonable detail 

  
 2 

 
the basis for the continuance of, or any change in, the Applicable Margins. Failure to timely deliver such Compliance Certificate shall, in addition to any other remedy provided for in this
Agreement, result in an increase in the Applicable Margins to the highest level set forth in the foregoing grid, until the date of the delivery of a Compliance Certificate demonstrating that such an increase is not required. If an Event of Default
has occurred and is continuing at the time any reduction in the Applicable Margins is to be implemented, that reduction shall be deferred until the date on which such Event of Default is waived or cured. 

(B) As of the Closing Date, the Applicable Margins are as follows: 

 

					
	 Applicable Revolver Index Margin
	  	 	0.75	% 
	 Applicable Revolver LIBOR Margin
	  	 	2.25	% 
	 Applicable L/C Margin
	  	 	2.25	% 
	 Applicable Unused Line Fee Margin
	  	 	0.50	% 

 After the Closing Date until (but excluding) the First Amendment Date, the Applicable Margins (other than
Applicable Unused Line Fee Margin) shall be adjusted by reference to the following grids: 
  

			
	 If Reference Availability is:
	  	Level of
Applicable Margins (other 
than
Applicable Unused Line Fee Margin):
	 >$30,000,000
	  	Level I
	 > $10,000,000, but <$30,000,000
	  	Level II
	 <$10,000,000
	  	Level III

  

													
	 	  	Applicable Margins (other than
Applicable Unused Line Fee 
Margin)	 
	 	  	Level I	 	 	Level II	 	 	Level III	 
	 Applicable Revolver Index Margin
	  	 	0.75	% 	 	 	1.00	% 	 	 	1.50	% 
	 Applicable Revolver LIBOR Margin
	  	 	2.25	% 	 	 	2.50	% 	 	 	3.00	% 
	 Applicable L/C Margin
	  	 	2.25	% 	 	 	2.50	% 	 	 	3.00	% 

  
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 Adjustments in the Applicable Margins (other than Applicable Unused Line Fee Margin)
commencing with the Fiscal Quarter ending on or about July 3, 2010 shall be implemented quarterly on a prospective basis, commencing on the first day of the calendar month that begins after the date of delivery to Lenders of the Compliance
Certificate delivered to Agent and Lenders pursuant to paragraph (b) of Annex E with respect to a Fiscal Quarter evidencing the need for an adjustment. Concurrently with the delivery of such Compliance Certificate, Borrower shall
deliver to Agent and Lenders a certificate, signed by its chief financial officer, setting forth in reasonable detail the basis for the continuance of, or any change in, the Applicable Margins. Failure to timely deliver such Compliance Certificate
shall, in addition to any other remedy provided for in this Agreement, result in an increase in the Applicable Margins (other than Applicable Unused Line Fee Margin) to the highest level set forth in the foregoing grid, until the date of the
delivery of a Compliance Certificate demonstrating that such an increase is not required. If an Event of Default has occurred and is continuing at the time any reduction in the Applicable Margins is to be implemented, that reduction shall be
deferred until the date on which such Event of Default is waived or cured. 
 After the Closing Date until (but excluding) the
First Amendment Date, the Applicable Unused Line Fee Margin shall be adjusted as follows: (i) if the average of the daily closing balances of the Revolving Loan and the Swing Line Loan outstanding during the period for which the Fee under
Section 1.9(b) is due is equal to or greater than 50% of the average Maximum Amount during such period, the Applicable Unused Line Fee Margin for such period shall be equal to 0.375% per annum and (ii) if the average of the
daily closing balances of the Revolving Loan and the Swing Line Loan outstanding during the period for which the Fee under Section 1.9(b) is due is less than 50% of the average Maximum Amount for such period, the Applicable Unused Line
Fee Margin for such period shall be equal to 0.50% per annum. 
 (C) As of the First Amendment Date, the Applicable Margins
are as follows: 
  

					
	 Applicable Revolver Index Margin
	  	 	0.50	% 
	 Applicable Revolver LIBOR Margin
	  	 	1.50	% 
	 Applicable L/C Margin
	  	 	1.50	% 
	 Applicable Unused Line Fee Margin
	  	 	0.375	% 

  
 4 

 After the First Amendment Date, the Applicable Margins (other than Applicable Unused Line
Fee Margin) shall be adjusted by reference to the following grids: 
  

			
	 If Reference Availability is:
	  	 Level of
 Applicable Margins (other than Applicable Unused
Line Fee Margin):

	 >$40,000,000
	  	Level I
	 > $25,000,000, but £$40,000,000
	  	Level II
	 > $10,000,000, but £$25,000,000
	  	Level III
	 £$10,000,000
	  	Level IV

  

																	
	  	  	Applicable Margins (other than Applicable
Unused Line Fee Margin)	 
	  	  	Level I	 	 	Level II	 	 	Level III	 	 	Level IV	 
	 Applicable Revolver Index Margin
	  	 	0.50	% 	 	 	0.75	% 	 	 	1.00	% 	 	 	1.25	% 
	 Applicable Revolver LIBOR Margin
	  	 	1.50	% 	 	 	1.75	% 	 	 	2.00	% 	 	 	2.50	% 
	 Applicable L/C Margin
	  	 	1.50	% 	 	 	1.75	% 	 	 	2.00	% 	 	 	2.50	% 

 Adjustments in the Applicable Margins (other than Applicable Unused Line Fee Margin) commencing with the
Fiscal Quarter ending on or about March 31, 2012 shall be implemented quarterly on a prospective basis, commencing on the first day of the calendar month that begins after the date of delivery to Lenders of the Compliance Certificate delivered
to Agent and Lenders pursuant to paragraph (b) of Annex E with respect to a Fiscal Quarter evidencing the need for an adjustment. Concurrently with the delivery of such Compliance Certificate, Borrower shall deliver to Agent and
Lenders a certificate, signed by its chief financial officer, setting forth in reasonable detail the basis for the continuance of, or any change in, the Applicable Margins. Failure to timely deliver such Compliance Certificate shall, in addition to
any other remedy provided for in this Agreement, result in an increase in the Applicable Margins (other than Applicable Unused Line Fee Margin) to the highest level set forth in the foregoing grid, until the date of the delivery of a Compliance
Certificate demonstrating that such an increase is not required. If an Event of Default has occurred and is continuing at the time any reduction in the Applicable Margins is to be implemented, that reduction shall be deferred until the date on which
such Event of Default is waived or cured. 
 After the First Amendment Date, the Applicable Unused Line Fee Margin shall be
adjusted as follows: (i) if the average of the daily closing balances of the Revolving Loan and the Swing Line Loan outstanding during the period for which the Fee under Section 1.9(b) is due is equal to or greater than 50% of the
average 

  
 5 

 
Maximum Amount during such period, the Applicable Unused Line Fee Margin for such period shall be equal to 0.25% per annum and (ii) if the average of the daily closing balances of the
Revolving Loan and the Swing Line Loan outstanding during the period for which the Fee under Section 1.9(b) is due is less than 50% of the average Maximum Amount for such period, the Applicable Unused Line Fee Margin for such period
shall be equal to 0.375% per annum.” 
 1.3 Section 1.14 of the Credit Agreement is amended by replacing
the phrase “audit and inspection is commenced after Borrowing Availability is less than $15,000,000” appearing therein with the phrase “audit and inspection is commenced after Borrowing Availability is less than $20,000,000”.

 1.4 Section 3.5 of the Credit Agreement is amended by replacing the phrase “Since October 3, 2009 no
event has occurred” appearing in the last sentence thereof with the phrase “Since October 1, 2011 no event has occurred”. 
 1.5 Section 6.1(b)(vi)(B)(I) of the Credit Agreement is amended by replacing the phrase “such Acquisition Pro Forma shall reflect that (x) Liquidity is at least $10,000,000”
appearing therein with the phrase “such Acquisition Pro Forma shall reflect that (x) Liquidity is at least $13,500,000”. 
 1.6 Section 6.2(c) of the Credit Agreement is amended by replacing the phrase “Liquidity immediately prior to making an investment pursuant to this clause (c) is at least
$10,000,000” appearing therein with the phrase “Liquidity immediately prior to making an investment pursuant to this clause (c) is at least $13,500,000”. 

1.7 Section 6.3(b)(iv) of the Credit Agreement is amended by replacing the phrase “Borrowing Availability is at least
$10,000,000 immediately after giving effect to the proposed purchase, redemption, defeasance or prepayment” appearing therein with the phrase “Borrowing Availability is at least $13,500,000 immediately after giving effect to the proposed
purchase, redemption, defeasance or prepayment”. 
 1.8 Section 6.13(d) of the Credit Agreement is amended by
replacing the phrase “Liquidity is at least $10,000,000 immediately after giving effect to the proposed Dividend” appearing therein with the phrase “Liquidity is at least $13,500,000 immediately after giving effect to the proposed
Dividend”. 
 1.9 Section 6.13(e) of the Credit Agreement is amended by replacing the phrase “Liquidity is
at least $10,000,000 immediately after giving effect to the proposed Stock Repurchase” appearing therein with the phrase “Liquidity is at least $13,500,000 immediately after giving effect to the proposed Stock Repurchase”. 

1.10 Annex A to the Credit Agreement is hereby amended as follows: 

(a) Clause (a) of the definition of the term “Commitment Termination Date” is amended and restated
to read in its entirety as follows: 
 “(a) June 2, 2016,” 

  
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 (b) The definition of the term “Commitments” is amended by
replacing the phrase “which aggregate commitment was (One Hundred Million Dollars ($100,000,000) on the First A&R Closing Date and which aggregate commitment was reduced to Seventy-Five Million Dollars ($75,000,000) on the Closing
Date” appearing therein with the phrase “which aggregate commitment was One Hundred Million Dollars ($100,000,000) on the First A&R Closing Date, was reduced to Seventy-Five Million Dollars ($75,000,000) on the Closing Date and was
increased to One Hundred Million Dollars ($100,000,000) on the First Amendment Date”. 
 (c) The definition
of the term “Control Letter” is amended by replacing the phrase “or at any time after Liquidity is less than $10,000,000” appearing therein with the phrase “or at any time after Liquidity is less than $13,500,000”.

 (d) The definition of the term “GE Capital Fee Letter” is amended and restated to read in its
entirety as follows: 
 “GE Capital Fee Letter” means that certain fourth amended and restated letter, dated as
of the First Amendment Date, between GE Capital and Borrower with respect to certain Fees to be paid from time to time by Borrower to GE Capital. 
 (e) The following definitions are added to Annex A to the Credit Agreement in their appropriate alphabetical order: 
 “First Amendment Date” means February 6, 2012. 
 1.11
Annex C to the Credit Agreement is amended by replacing the phrase “or at any time after Liquidity is less than $10,000,000” appearing in clause (c) thereof with the phrase “or at any time after Liquidity is less
than $13,500,000”. 
 1.12 Annex F to the Credit Agreement is amended by replacing the phrase “is commenced
after Borrowing Availability is less than $15,000,000” appearing in clause (f) thereof with the phrase “is commenced after Borrowing Availability is less than $20,000,000”. 

1.13 Annex G to the Credit Agreement is amended by replacing the phrase “If Liquidity on any day is less than
$10,000,000” appearing therein with the phrase “If Liquidity on any day is less than $13,500,000”. 
 1.14
Annex J to the Credit Agreement is amended and restated to read in its entirety as Annex J attached hereto. 
 2
Conditions to Effectiveness. This Amendment shall be effective on the date on which all of the following conditions precedent have been satisfied as determined by Agent in its sole discretion: 

2.1 this Amendment shall have been duly executed and delivered by the Borrower, each other Credit Party, the Agent and each Lender;

  
 7 

 2.2 Borrower shall have paid the Fees required to be paid on the First Amendment Date in the
respective amounts specified in Section 1.9 (including the Fees specified in the GE Capital Fee Letter), and shall have reimbursed Agent for all fees, costs and expenses of closing presented as of the First Amendment Date; and

 2.3 Agent shall have received, in form and substance reasonably satisfactory to Agent, the following items: 

(a) Revolving Notes and GE Capital Fee Letter. Duly executed amended and restated Revolving Notes for each
applicable Lender and GE Capital Fee Letter, each dated the First Amendment Date; 
 (b) Charter and Good
Standing. For each Credit Party, such Person’s (a) charter and all amendments thereto, and (b) good standing certificates (including verification of tax status) in its state of incorporation, each dated a recent date prior to the
First Amendment Date and certified by the applicable Secretary of State or other authorized Governmental Authority; 
 (c) Bylaws and Resolutions. For each Credit Party, (a) such Person’s bylaws, together with all amendments thereto and (b) resolutions of such Person’s Board of Directors,
approving and authorizing the execution, delivery and performance of the Amendment and the transactions to be consummated in connection therewith, each certified as of the First Amendment Date by such Person’s corporate secretary or an
assistant secretary as being in full force and effect without any modification or amendment; 
 (d)
Incumbency Certificates. For each Credit Party, signature and incumbency certificates of the officers of each such Person, certified as of the First Amendment Date by such Person’s corporate secretary or an assistant secretary as being
true, accurate, correct and complete; and 
 (e) Opinions of Counsel. Duly executed originals of opinions
of Womble Carlyle Sandridge & Rice, PLLC, counsel for the Credit Parties, in form and substance reasonably satisfactory to Agent and its counsel, dated the First Amendment Date. 

3 Representations and Warranties. In order to induce the Agent and the Lenders to enter into this Amendment, the Borrower
and each other Credit Party represents and warrants to the Agent and each Lender (which representations and warranties shall survive the execution and delivery of this Amendment), that: 

3.1 the execution, delivery and performance by each Credit Party of this Amendment has been duly authorized by all necessary corporate
action and this Amendment is a legal, valid and binding obligation of such Credit Party enforceable against such Credit Party in accordance with its terms, except as the enforcement thereof may be subject to (i) the effect of any applicable
bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforcement is sought in a proceeding in equity or at law);

  
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 3.2 upon the effectiveness of this Amendment, all of the representations and warranties
contained in the Credit Agreement and in the other Loan Documents (other than those which speak expressly only as of an earlier date) are true and correct in all material respects on and as of the date of the effectiveness of this Amendment after
giving effect to this Amendment and the transactions contemplated hereby; and 
 3.3 no Default or Event of Default exists or
will result after giving effect to this Amendment and the transactions contemplated hereby. 
 4 Miscellaneous.

 4.1 Effect; Ratification. 

(a) Except as specifically set forth above, the Credit Agreement and the other Loan Documents shall remain in full force
and effect and are hereby ratified and confirmed. 
 (b) The execution, delivery and effectiveness of this
Amendment shall not operate as a waiver of any right, power or remedy of the Agent or any Lender under the Credit Agreement or any other Loan Document, nor constitute amendment of any provision of the Credit Agreement or any other Loan Document,
except as specifically set forth herein. Upon the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of similar import shall
mean and be a reference to the Credit Agreement as amended hereby. 
 (c) Each Credit Party acknowledges and
agrees that the amendments set forth herein are effective solely for the purposes set forth herein and that the execution and delivery by the Agent and the Requisite Lenders of this Amendment shall not be deemed (i) except as expressly provided
in this Amendment, to be a consent to any amendment, waiver or modification of any term or condition of the Credit Agreement or of any other Loan Document, (ii) to create a course of dealing or otherwise obligate the Agent or the Lenders to
forbear, waive, consent or execute similar amendments under the same or similar circumstances in the future, or (iii) to amend, prejudice, relinquish or impair any right of the Agent or the Lenders to receive any indemnity or similar payment
from any Person or entity as a result of any matter arising from or relating to this Amendment. 
 4.2 Counterparts and
Signatures by Fax. This Amendment may be executed in any number of counterparts, each such counterpart constituting an original but all together one and the same instrument. Any party delivering an executed counterpart of this Amendment by
fax shall also deliver an original executed counterpart, but the failure to do so shall not affect the validity, enforceability or binding effect of this Amendment. 
 4.3 Severability. In case any provision in or obligation under this Amendment shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the
remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. 

  
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 4.4 Costs and Expenses. Borrower agrees to reimburse the Agent for all fees,
costs and expenses, including the reasonable fees, costs and expenses of counsel or other advisors for advice, assistance, or other representation in connection with this Amendment. 

4.5 Loan Document. This Amendment shall be deemed to be a Loan Document. 

4.6 Reaffirmation. Each of the Credit Parties hereby acknowledges and reaffirms all of its obligations and undertakings
under each of the Loan Documents to which it is a party and acknowledges and agrees that subsequent to, and after taking account of the provisions of this Amendment, each such Loan Document is and shall remain in full force and effect in accordance
with the terms thereof. 
 4.7 GOVERNING LAW. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. 
 <Signature Pages
Follow> 

  
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 IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first
above written. 
  

			
	BORROWER:
	
	INSTEEL WIRE PRODUCTS COMPANY, a North Carolina corporation
		
	By:	 	/s/    Michael C. Gazmarian         
	Name:	 	Michael C. Gazmarian
	Title:	 	Vice President, CFO and Treasurer

  

			
	AGENT AND LENDERS:
	
	GENERAL ELECTRIC CAPITAL CORPORATION, as Agent and Lender
		
	By:	 	/s/    Michael R. Todorow        
		 	Duly Authorized Signatory

 [Signature Page to First Amendment to 

Second Amended and Restated Credit Agreement] 

 The following Persons are signatories to this Amendment in their capacity as Credit Parties
and not as Borrower. 
  

			
	
	INSTEEL INDUSTRIES, INC., a North Carolina corporation
		
	By:	 	/s/    Michael C. Gazmarian
	Name:	 	Michael C. Gazmarian
	Title:	 	Vice President, CFO and Treasurer

  

			
	
	INTERCONTINENTAL METALS CORPORATION, a North Carolina corporation
		
	By:	 	/s/    Michael C. Gazmarian
	Name:	 	Michael C. Gazmarian
	Title:	 	Vice President, CFO and Treasurer

 [Signature Page to First Amendment to 

Second Amended and Restated Credit Agreement] 

 ANNEX J (from Annex A—Commitments definition) 

to 

CREDIT AGREEMENT 

Lender: General Electric Capital Corporation 
  

					
	 Revolving Loan Commitment (including a Swing Line Commitment of $5,000,000):
	  	$	100,000,000

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