EX-10.35 3 exhib10-35.txt AMENDMENT NO. 2 This Amendment No. 2 dated as of March 18, 2002 ("Agreement") is among Global Industries, Ltd., a Louisiana corporation ("Company"), and Global Offshore Mexico, S. de. R.L. de C.V. ("Mexican Borrower"; which, with the Company, are referred to as the "Borrowers"); the Lenders (as defined below) executing this Agreement; and Bank One, NA, as administrative agent for the Lenders ("Administrative Agent"). INTRODUCTION A. The Borrowers, the Lenders, and the Administrative Agent are parties to the First Amended and Restated Credit Agreement dated as of August 7, 2001, as amended by Amendment No. 1 dated as of November 30, 2001 (as amended and restated, the "Credit Agreement"). B. The Borrowers, the Lenders, and the Administrative Agent desire to amend the Credit Agreement in certain respects as set forth herein. THEREFORE, the Borrowers, the Lenders, and the Administrative Agent hereby agree as follows: Section 1. Definitions; References. Unless otherwise defined in this Agreement, terms used in this Agreement which are defined in the Credit Agreement shall have the meanings assigned to such terms in the Credit Agreement. Section 2. Amendments. The Credit Agreement is amended as follows: (a) Section 5.13(d) of the Credit Agreement is deleted in its entirety. (b) Section 6.01 of the Credit Agreement is amended by deleting "and" at the end of paragraph (j), adding "and" at the end of paragraph (k), and adding the following new paragraph (l): (l) Provided that the Term Loan has been paid in full, Liens on the Collateral securing Debt under a 364-day facility not to exceed $50,000,000. (c) Section 6.02(l) of the Credit Agreement is amended in its entirety to read as follows: (l) unsecured obligations other than Permitted Bond Obligations in respect of (i) standby letters of credit, bonds (other than surety bonds) and guaranties issued for the account of the Company or any of its Subsidiaries in the ordinary course of business with an aggregate face amount outstanding at any time not to exceed $50,000,000 or its Equivalent Amount in another currency, or (ii) surety bonds issued for the account of the Company or any of its Subsidiaries in the ordinary course of business with an aggregate face amount outstanding at any time not to exceed $150,000,000 or its Equivalent Amount in another currency; (d) Section 6.02 of the Credit Agreement is amended by deleting "and" at the end of paragraph (n), adding "and" at the end of paragraph (o), and adding the following new paragraph (p): (p) Provided that the Term Loan has been paid in full, Debt of the Company and its Subsidiaries under a 364-day facility not to exceed $50,000,000. (e) The Minimum Net Worth covenant in Section 6.11 is amended in its entirety to read as follows: Section 6.11. Minimum Net Worth. The Company shall not permit Consolidated Net Worth as of the last day of any fiscal quarter to be less than (a) up to, but not including, June 30, 2002: (i) $345,000,000.00 plus (ii) 50% of its Consolidated Net Income for each fiscal quarter beginning with the fiscal quarter ending on December 31, 1999, during which Consolidated Net Income is positive, but without reductions for any fiscal quarters during which Consolidated Net Income is negative plus (iii) 100% of the Net Cash Proceeds from any Equity Issuance on and after January 1, 2000 plus (iv) without duplication of the preceding clause (iii), 100% of any increase in Consolidated Net Worth from the conversion of any Debt to equity, the issuance of any capital stock, warrants or options to purchase capital stock or other equity interest, and any other transaction the effect of which is to increase Consolidated Net Worth; or (b) at June 30, 2002 and thereafter: (i) $440,000,000.00 plus (ii) 50% of its Consolidated Net Income for each fiscal quarter beginning with the fiscal quarter ending on December 31, 2002, during which Consolidated Net Income is positive, but without reductions for any fiscal quarters during which Consolidated Net Income is negative plus (iii) 100% of the Net Cash Proceeds from any Equity Issuance on and after June 30, 2002 plus (iv) without duplication of the preceding clause (iii), 100% of any increase in Consolidated Net Worth from the conversion of any Debt to equity, the issuance of any capital stock, warrants or options to purchase capital stock or other equity interest, and any other transaction the effect of which is to increase Consolidated Net Worth. Section 3. Representations and Warranties. The Borrowers represent and warrant to the Administrative Agent and the Lenders that: (a) the representations and warranties set forth in the Credit Agreement are true and correct in all material respects as of the date of this Agreement, except to the extent any such representation or warranty is stated to relate solely to an earlier date, in which case such representation or warranty was true and correct in all material respects as of such earlier date; (b) (i) the execution, delivery, and performance of this Agreement have been duly authorized by appropriate proceedings, and (ii) this Agreement constitutes a legal, valid, and binding obligation of the Borrowers, enforceable in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the rights of creditors generally and general principles of equity; and (c) as of the effectiveness of this Agreement, no Default or Event of Default has occurred and is continuing. Section 4. Effectiveness. This Agreement shall become effective and the Credit Agreement shall be amended as provided in this Agreement upon the occurrence of the following conditions precedent: (a) the Borrowers, the Guarantors, the Administrative Agent, and the Required Lenders shall have delivered duly and validly executed originals of this Agreement to the Administrative Agent; and (b) the representations and warranties in this Agreement shall be true and correct in all material respects; and (c) Borrowers shall have paid all appropriate arrangement and amendment fees to the Administrative Agent and the Lenders. Section 5. Effect on Loan Documents. (a) Except as amended herein, the Credit Agreement and the Credit Documents remain in full force and effect as originally executed and amended heretofore. Nothing herein shall act as a waiver of any of the Administrative Agent's or Lenders' rights under the Credit Documents, as amended, including the waiver of any Event of Default or Default, however denominated. (b) This Agreement is a Credit Document for the purposes of the provisions of the other Credit Documents. Without limiting the foregoing, any breach of representations, warranties, and covenants under this Agreement may be an Event of Default or Default under other Credit Documents. Section 6. Choice of Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of New York. Section 7. Counterparts. This Agreement may be signed in any number of counterparts, each of which shall be an original. EXECUTED as of the date first above written. GLOBAL INDUSTRIES, LTD. By: Name: Timothy W. Miciotto Title: Senior Vice President & Chief Financial Officer GLOBAL OFFSHORE MEXICO, S. DE R.L. DE C.V. By: Name: Russell J. Robicheaux Title: Director - Attorney in Fact BANK ONE, NA, individually and as Administrative Agent By: Name: Title: BANK ONE, NA, as Issuing Bank By: Name: Title: CREDIT LYONNAIS NEW YORK BRANCH By: Name: Title: WELLS FARGO BANK TEXAS, N.A. By: Name: Title: WHITNEY NATIONAL BANK By: Name: Title: CREDIT SUISSE FIRST BOSTON By: Name: Title: By: Name: Title: HIBERNIA NATIONAL BANK By: Name: Title: THE FUJI BANK, LIMITED By: Name: Title: NATEXIS BANQUE BFCE By: Name: Title: By: Name: Title: MASSACHUSETTS MUTUAL LIFE INSURANCE By: Name: Title: TRANSAMERICA EQUIPMENT FINANCIAL SERVICES CORPORATION By: Name: Title: ACKNOWLEDGMENT AND CONSENT BY GUARANTORS Each of the undersigned Guarantors (i) acknowledges its receipt of a copy of and hereby consents to all of the terms and conditions of the foregoing Amendment No. 2 and (ii) reaffirms its obligations under the Guaranties dated as of December 30, 1999, December 31, 1999, or January 26, 2000, as applicable, in favor of Bank One, NA, as Administrative Agent. GIL HOLDINGS, L.L.C. GLOBAL INDUSTRIES OFFSHORE, L.L.C. GLOBAL PIPELINES PLUS, L.L.C. GLOBAL MOVIBLE OFFSHORE PIPELINES, L.L.C. NORMAN OFFSHORE PIPELINES, INC. GLOBAL DIVERS AND CONTRACTORS, L.L.C. SUBTEC MIDDLE EAST LTD. By: William J. Dore Chief Executive Officer GLOBAL INDUSTRIES MEXICO HOLDINGS, S. DE R.L. DE C.V. GLOBAL VESSELS MEXICO, S. DE R.L. DE C.V. GLOBAL INDUSTRIES OFFSHORE SERVICES, S. DE R.L. DE C.V. GLOBAL INDUSTRIES SERVICES, S. DE R.L. DE C.V. By: William J. Dore Chief Executive Officer By: Peter S. Atkinson President By: Russell J. Robicheaux Vice President, General Counsel GLOBAL INTERNATIONAL VESSELS, LTD. By: William J. Dore Chief Executive Officer PIPELINES, INCORPORATED By: Name: Title: -1- Houston\1358114.1 -8-