Exhibit 10.1 


 


EXECUTION VERSION


 


FIRST AMENDMENT, WAIVER AND CONSENT TO

REVOLVING CREDIT, GUARANTY AND SECURITY AGREEMENT AND LETTER

 OF CREDIT ISSUANCE AND REIMBURSEMENT AND GUARANTY AGREEMENT


 


THIS FIRST AMENDMENT, WAIVER
AND CONSENT TO REVOLVING CREDIT, GUARANTY AND SECURITY AGREEMENT AND LETTER OF CREDIT ISSUANCE AND REIMBURSEMENT AND GUARANTY AGREEMENT
(this “Amendment”), dated as of August 8, 2022, is entered into by and among Babcock &
Wilcox Enterprises, Inc. (the “Borrower”), certain Guarantors from time to time party to the Financing
Agreements referred to below (the “Guarantors” and, together with the Borrower, the “Loan Parties”
and each, a “Loan Party”), certain financial institutions from time to time party to the Financing Agreements referred
to below (collectively, the “Lenders”), PNC BANK, NATIONAL ASSOCIATION, a national banking association (“PNC”),
as agent for Lenders under the Credit Agreement referred to below (in such capacity, the “Agent”)., and PNC, as issuer
under the Letter of Credit Agreement referred to below (in such capacity, the “Issuer”). Terms used herein without
definition shall have the meanings ascribed to them in the Financing Agreements defined below.


 


RECITALS


 


A.            The
Loan Parties, Lenders and the Agent have previously entered into that certain Revolving Credit, Guaranty and Security Agreement,
dated as of June 30, 2021 (as amended, restated, modified and/or supplemented from time to time, the
 “Credit Agreement”), pursuant to which the Lenders have made certain loans and financial accommodations available
to the Borrower


 


B.            The
Loan Parties and the Issuer have previously entered into that certain Letter of Credit Issuance and Reimbursement and Guaranty Agreement,
dated as of June 30, 2021 (as amended, restated, modified and/or supplemented from time to time, the “Letter of Credit
Agreement”, and together with the Credit Agreement, the “Financing Agreements”).


 


C.            The
Loan Parties have requested the Lenders, the Agent and the Issuer waive compliance with certain Payment Conditions for purposes of making
a Permitted Restricted Payment.


 


D.            The
Loan Parties, the Lenders, the Agent and the Issuer also wish to amend the Financing Agreements on the terms and conditions set forth
herein.


 


E.            The
Loan Parties are entering into this Amendment with the understanding and agreement that, except as specifically provided herein, none
of Agent’s, Issuer’s or any Lender’s rights or remedies as set forth in the Financing Agreements or any Other
Document is being waived or modified by the terms of this Amendment.


 






    



     


    

 


AGREEMENT


 


NOW, THEREFORE, in consideration
of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereby agree as follows:


 


1.            Amendments
to Credit Agreement.


 


(a)            The
following defined terms are hereby added to Section 1.2 of the Credit Agreement in their proper alphabetical order:


 


“AB Amount”
has the meaning set forth in definition of “Advance Billing Adjustment”.


 


“Advance
Billing Adjustment” means, as of any fiscal quarter end testing date, an amount equal to (a) the amount of progress billing
or other advance billing constituting a Current Liability (the “AB Amount”) as of such date of determination less
(b) the AB Amount as of the last day of the fiscal quarter immediately preceding the fiscal quarter described in clause (a) above.


 


“Current
Assets” means, with respect to Loan Parties on a Consolidated Basis, as of any applicable testing date, all current assets
of such Person as of any date of determination calculated in accordance with GAAP less the Advance Billing Adjustment as of such
testing date.


 


“Current
Liabilities” means, with respect to Loan Parties on a Consolidated Basis, as of any applicable testing date, all liabilities
which should, in accordance with GAAP, be classified as current liabilities, and in any event shall include all Indebtedness payable
on demand or within one year from any date of determination without any option on the part of the obligor to extend or renew beyond such
year, all accruals for federal or other taxes based on or measured by income and payable within such year, but excluding the current
portion of long-term debt required to be paid within one year and the outstanding principal balance of the Revolving Loan.


 


“Current
Ratio” shall mean, with respect to Loan Parties on a Consolidated Basis as of any applicable testing date, the ratio of (a) Current
Assets to (b) Current Liabilities.


 


(b)            Section 6.5
of the Credit Agreement is hereby amended by adding the following clause (f) immediately following clause (e):


 


“(f)          Current
Ratio Covenant. Cause Loan Parties on a Consolidated Basis to maintain as of the end of the fiscal quarter ending June 30, 2022
and as of the end of each fiscal quarter ending thereafter, a Current Ratio tested as of such date of not less than 1.25 to 1.00.”


 


(c)            Exhibit 1.2(b) to
the Credit Agreement is hereby replaced with the new Exhibit 1.2(b) attached to this Amendment.


 


2.             Limited
Waiver. The Borrowers request the Lenders, the Agent and the Issuer waive compliance with clause (j) of the definition of Payment
Conditions in the Credit Agreement solely for purposes of the making of a Permitted Restricted Payment under clause (g) of the definition
thereof in connection with making a dividend in respect of Preferred Equity after the date hereof and on or prior to September 30,
2022 in an aggregate amount not to exceed $3,715,000 (the “Requested Waiver”). Subject to satisfaction of the conditions
precedent set forth in Section 5 below, the Lenders, the Agent and the Issuer hereby consent to the Requested Waiver (such consent,
the “Limited Waiver”). Notwithstanding the foregoing, this Limited Waiver does not establish a course of conduct among
Loan Parties and the Lenders, the Agent and the Issuer and Loan Parties hereby agree that the Lenders, the Agent and the Issuer are not
obligated to waive any similar conditions under the Financing Agreements in the future.


 






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3.             Consent
under Intercreditor Agreement. Agent hereby consents to an amendment to the Reimbursement/Cash Collateral Facility Agreement entered
into on the date hereof on substantially similar terms as this Amendment (the “Reimbursement/Cash Collateral Amendment”),
notwithstanding anything to the contrary in Section 10.4(c) of the Intercreditor Agreement.


 


4.             Amendment
Fee. In consideration of the agreements set forth herein, Borrower hereby agrees to pay to PNC, for the benefit of the Lenders, an
amendment fee in the amount of $125,000(the “Amendment Fee”), which fee is non-refundable when paid and is fully-earned
as of and due and payable in cash on the date of this Amendment (and which PNC is authorized to withdraw from the Borrower’s account).


 


5.             Effectiveness
of this Amendment. The Agent and the Issuer must be satisfied that the following conditions have been met before this Amendment is
effective.


 


(a)            Amendment.
The Agent and the Issuer have received this Amendment, fully executed in a sufficient number of counterparts for distribution to all
parties.


 


(b)            Amendment
to Reimbursement/Cash Collateral Facility. The Agent and the Issuer have received a fully executed copy of the Reimbursement/Cash
Collateral Amendment.


 


(c)            Amendment
Fee. PNC has received the Amendment Fee.


 


(d)            Representations
and Warranties. The representations and warranties set forth herein must be true and correct in all material respects (except that
such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality
in the text thereof).


 


6.             Representations
and Warranties. Each Loan Party represents and warrants as follows:


 


(a)            Authority.
Such Loan Party has full power, authority and legal right to enter into this Amendment and to perform all its Obligations hereunder and
under the Other Documents (as amended or modified hereby). This Amendment has been duly executed and delivered by such Loan Party, and
this Amendment constitutes the legal, valid and binding obligation of such Loan Party enforceable in accordance with its terms, except
as such enforceability may be limited by any applicable bankruptcy, insolvency, moratorium or similar laws affecting creditors’
rights generally. The execution, delivery and performance of this Amendment (i) are within such Loan Party’s corporate powers,
have been duly authorized by all necessary corporate action, are not in contravention of law or the terms of such Loan Party’s
bylaws, articles of incorporation or other applicable documents relating to such Loan Party’s formation or to the conduct of such
Loan Party’s business or of any material agreement or undertaking to which such Loan Party is a party or by which such Loan Party
is bound, (ii) will not, in any material respect, conflict with or violate any law or regulation, or any judgment, order or decree
of any Governmental Body, (iii) will not require the Consent of any Governmental Body or any other Person, except those Consents
which have been duly obtained, made or compiled prior to the date hereof and which are in full force and effect or except those which
the failure to have obtained would not have, or could not reasonably be expected to have a Material Adverse Effect and (iv) will
not conflict with, nor result in any breach in any of the provisions of or constitute a default under or result in the creation of any
Lien except Permitted Encumbrances upon any asset of any Loan party under the provisions of any material agreement, charter document,
operating agreement or other instrument to which such Loan Party is a party or by which it or its property is a party or by which it
may be bound.


 






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(b)            Representations
and Warranties. Each of the representations and warranties made by a Loan Party in or pursuant to the Financing Agreements, the Other
Documents and any related agreements to which it is a party, and each of the representations and warranties contained in any certificate,
document or financial or other statement furnished at any time under or in connection with the Financing Agreements, the Other Documents
or any related agreement are true and correct in all material respects on and as of the date hereof as though made on and as of the date
hereof, other than representations and warranties relating to a specific earlier date, and in such case such representations and warranties
are true and correct in all material respects as of such earlier date.


 


(c)            No
Default. No event has occurred and is continuing that constitutes a Default or an Event of Default.


 


7.             Choice
of Law. This Amendment shall in accordance with Section 5-1401 of the General Obligations Law of the State of New York, be governed
by and construed in accordance with the laws of the State of New York.


 


8.             Counterparts;
Facsimile Signatures. This Amendment may be executed in any number of and by different parties hereto on separate counterparts, all
of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and the same agreement. Any signature
delivered by a party by facsimile transmission or by electronic transmission (including email transmission of a PDF copy or other copy
of an image of a signed counterpart) shall be deemed to be an original signature hereto.


 


9.             Reference
to and Effect on the Other Documents.


 


(a)            Upon
and after the effectiveness of this Amendment, each reference in the Financing Agreements to “this Agreement”, “hereunder”,
 “hereof” or words of like import referring to the Financing Agreements, and each reference in the Other Documents to the
 “Credit Agreement”, “Letter of Credit Agreement” or “Financing Agreements”, “thereof”
or words of like import referring to the Financing Agreements, shall mean and be a reference to the Financing Agreements as modified
and amended hereby.


 


(b)            Except
as specifically amended above, the Financing Agreements and all Other Documents, are and shall continue to be in full force and effect
and are hereby in all respects ratified and confirmed and shall constitute the legal, valid, binding and enforceable obligations of Borrower
to the Agent, the Issuer and the Lenders, except as such enforceability may be limited by any applicable bankruptcy, insolvency, moratorium
or similar laws affecting creditors’ rights generally.


 






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(c)            The
execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right,
power or remedy of the Agent, the Issuer and/or the Lenders under any of the Other Documents, nor constitute a waiver of any provision
of any of the Other Documents.


 


(d)            To
the extent that any terms and conditions in any of the Other Documents shall contradict or be in conflict with any terms or conditions
of the Financing Agreements, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly
to reflect the terms and conditions of the Financing Agreements as modified or amended hereby.


 


10.           Estoppel.
To induce the Agent, the Issuer and the Lenders to enter into this Amendment and to continue to make cash collateral available under
the Financing Agreements, each Loan Party hereby acknowledges and agrees that, to its knowledge, as of the date hereof, there exists
no right of offset, defense, counterclaim or objection in favor of any Borrower as against the Agent, the Issuer or any Lender with respect
to the Obligations.


 


11.           Integration.
This Amendment, together with the Other Documents, incorporates all negotiations of the parties hereto with respect to the subject matter
hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof.


 


12.           Severability.
If any part of this Amendment is contrary to, prohibited by, or deemed invalid under Applicable Laws, such provision shall be inapplicable
and deemed omitted to the extent so contrary, prohibited or invalid, but the remainder hereof shall not be invalidated thereby and shall
be given effect so far as possible.


 


13.           Submission
of Amendment. The submission of this Amendment to the parties or their agents or attorneys for review or signature does not constitute
a commitment by the Agent, the Issuer or any Lender to make any changes to the terms of the Financing Agreements and this Amendment shall
have no binding force or effect until all of the conditions to the effectiveness of this Amendment have been satisfied as set forth herein.


 


14.           Guarantor’s
Acknowledgment. With respect to the amendments to the Financing Agreements effected by this Amendment, each Loan Party signatory
hereto that is a Guarantor hereby acknowledges and agrees to this Amendment and confirms and agrees that its Guaranty (as modified and
supplemented in connection with this Amendment) is and shall continue to be, in full force and effect and is hereby ratified and confirmed
in all respects except that, upon the effectiveness of, and on and after the date of this Amendment, each reference in such Guaranty
to either Financing Agreements, “thereunder”, “thereof” or words of like import referring to either Financing
Agreements, shall mean and be a reference to such Financing Agreement as amended or modified by this Amendment. Although the Agent, the
Issuer and the Lenders have informed the Guarantors of the matters set forth above, and each Guarantor has acknowledged the same, each
Guarantor understands and agrees that neither Agent, Issuer nor any Lender has any duty under the Financing Agreements, the Guaranty
or any other agreement with any Guarantor to so notify any Guarantor or to seek such an acknowledgement, and nothing contained herein
is intended to or shall create such a duty as to any transaction hereafter.


  


[signature pages follow]


 






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


 


	 	BABCOCK & WILCOX ENTERPRISES, INC., as Borrower
	 	 	 
	 	By:	/s/ Rodney Carlson
	 	Name:	Rodney Carlson
	 	Title:	Treasurer




 


Signature Page to First Amendment, Waiver
and Consent to

Revolving Credit, Guaranty and Security Agreement and Letter of Credit Issuance and Reimbursement and Guaranty Agreement


 






    



     


    

 


	 	GUARANTORS:
	 	 
	 	AMERICON EQUIPMENT SERVICES, INC.
	 	AMERICON, LLC
	 	BABCOCK & WILCOX CONSTRUCTION CO., LLC
	 	BABCOCK & WILCOX EBENSBURG POWER, LLC
	 	BABCOCK & WILCOX EQUITY INVESTMENTS, LLC
	 	BABCOCK & WILCOX HOLDINGS, LLC,
	 	BABCOCK & WILCOX INDIA HOLDINGS, INC.
	 	BABCOCK & WILCOX INTERNATIONAL SALES AND SERVICE CORPORATION
	 	BABCOCK & WILCOX INTERNATIONAL, INC.
	 	THE BABCOCK & WILCOX COMPANY
	 	BABCOCK & WILCOX TECHNOLOGY, LLC
	 	DELTA POWER SERVICES, LLC
	 	DIAMOND OPERATING CO., INC.
	 	DIAMOND POWER AUSTRALIA HOLDINGS, INC.
	 	DIAMOND POWER CHINA HOLDINGS, INC.
	 	DIAMOND POWER EQUITY INVESTMENTS, INC.
	 	DIAMOND POWER INTERNATIONAL, LLC
	 	EBENSBURG ENERGY, LLC
	 	O&M HOLDING COMPANY
	 	POWER SYSTEMS OPERATIONS, INC.
	 	SOFCO – EFS HOLDINGS LLC
	 	BABCOCK & WILCOX SPIG, INC.
	 	BABCOCK & WILCOX CANADA CORP.



 


	 	By:	/s/ Rodney Carlson
	 	Name:	Rodney Carlson
	 	Title:	Treasurer


 


Signature Page to First Amendment, Waiver
and Consent to

Revolving Credit, Guaranty and Security Agreement and Letter of Credit Issuance and Reimbursement and Guaranty Agreement


 






    



     


    

 


	 	PNC BANK, NATIONAL ASSOCIATION, as Agent, sole Lender, and Issuer 
	 	 
	 	By:	/s/ Mathew Leighton
	 	Name:	Mathew Leighton
	 	Title:	Senior Vice President




 


Signature Page to First Amendment, Waiver
and Consent to

Revolving Credit, Guaranty and Security Agreement and Letter of Credit Issuance and Reimbursement and Guaranty Agreement


 






    

 

     


    





 


Exhibit 1.2(b) 


Form of Compliance Certificate


 


COMPLIANCE CERTIFICATE


 


PNC Bank, National Association 


2 International Place, 29th Floor 


Boston, MA 02110 


Attention: Relationship Manager – Babcock & Wilcox


 


MSD PCOF Partners XLV, LLC 


c/o MSD Partners, L.P. 


645 Fifth Ave, 21st Floor 


New York, New York 10022 5910 


Attn: Marcello Liguori 


Email: mliguori@msdpartners.com


 


The undersigned, the [Chief Executive
Officer / Chief Financial Officer / Treasurer / Controller] of BABCOCK & WILCOX ENTERPRISES, INC., a corporation
organized under the laws of Delaware (“Borrowing Agent”), certifies to (i) PNC BANK, NATIONAL ASSOCIATION,
in its capacity as agent (in such capacity, “Agent”) under the Credit Agreement referenced below, and the
financial institutions referenced below, that, pursuant to the terms and conditions of that certain Revolving Credit, Guaranty and
Security Agreement, by and among Borrowing Agent, as the borrower thereunder, the financial institutions party thereto from time to
time, and Agent, dated as of June 30, 2021 (as may be amended, modified, supplemented, renewed, restated or replaced from time
to time, the “Credit Agreement”); and (ii) MSD PCOF Partners XLV, LLC as agent for the Cash Collateral
Providers under that certain Reimbursement, Guaranty and Security Agreement, by and among Borrowing Agent, as the borrower
thereunder, the financial institutions party thereto from time to time (the “Cash Collateral Providers”), dated
as of June 30, 2021 (as may be amended, modified, supplemented, renewed, restated or replaced from time to time, the
 “Reimbursement Agreement”, and together with the Credit Agreement, the “Debt Documents”); the
Loan Parties are in compliance for the [month / quarter /
fiscal year] ending___________________     , 20___ with all
required covenants set forth in the Debt Documents and no Default or Event of Default exists (if not true, in the “Comments
Regarding Exceptions” section below specify the Default or Event of Default, its nature, when it occurred, whether it is
continuing and the steps being taken by the Loan Parties with respect to such Default or Event of Default). Capitalized terms
used in this Compliance Certificate and not otherwise defined herein shall have the meanings ascribed to them in the Credit
Agreement and the Reimbursement Agreement, as applicable.


 


Without limiting the foregoing,
the undersigned certifies that the Loan Parties are in compliance with the requirements or restrictions imposed by Sections 6.5 and 7.6,
of the Credit Agreement or Reimbursement Agreement, as applicable, except as may be set forth below


 






     


     


    

 


[Attached hereto as Schedule
A are covenant calculations which show such compliance (or non-compliance) with [Section 6.5 and]1 [7.6]2
of the Credit Agreement or Reimbursement Agreement, as applicable.]


 


[Compliance status is indicated by circling Yes/No under “Complies”
column.]


 


	Financial Covenants	Required	Actual	Complies
	Section 6.5 (a) – Fixed Charge Coverage Ratio	≥ 1.00 to 1.00	___ to 1.00	Yes/No
	Section 6.5 (b) – Senior Net Leverage Ratio	≤ 2.50 to 1.00	___ to 1.00	Yes/No
	Section 6.5(c) Cash Repatriation Covenant	≤ $35,000,000	$__________	Yes/No
	Section 6.5(d) Minimum Liquidity Covenant	≥ $30,000,000	$__________	Yes/No
	Section 6.5(f) Current Ratio Covenant	≥ 1.25 to 1.00	___ to 1.00	Yes/No
	Section 7.6 – Maximum Capital Expenditures	≤ $7,500,000	$__________	Yes/No


 


[Since the date of the
last Compliance Certificate, there has been no change to the Loan Parties’ operating or other deposit accounts, securities
accounts, commodities accounts, and other accounts, other than Excluded Deposit Accounts, at which any Loan Party maintains funds or
investments, except as set forth below: _________________________________.


 


Since the date of the
last Compliance Certificate, there has been no change to the Loan Parties’ registered Intellectual Property, including any
applications for any of the foregoing, and including any licenses pursuant to which any Loan Party is a licensee of any of the
foregoing, except as set forth below: _________________________________.


 


Since the date of the last
Compliance Certificate, there has been no change to the Loan Parties’ leased locations or to locations of equipment and Inventory
(except for Inventory in transit) or other Collateral with a value equal to the Dollar Equivalent of $500,000 or greater (other than those
locations permitted in the Credit Agreement or the Reimbursement Agreement, as applicable), except as set forth below: __.]3


 


[Since the date of the last
Compliance Certificate, there has been no change to Loan Parties’ Equity Interests except as set forth below:
_________________________________.]4


 


[Attached as Exhibit I
hereto are updates to the following schedules as permitted by Section 9.17 of the Credit Agreement or Reimbursement Agreement, as
applicable]5


 


Comments
Regarding Exceptions: _________________________________. 


 


[signature page follows]


 





 






1
For quarterly certificate only.


2
For annual certificate only.


3
To be provided with quarterly compliance certificates


4
To be provided with quarterly compliance certificates


5
To be provided with quarterly compliance certificates


 






     


     


    

 


	 	Very truly yours,




 


	 	BABCOCK & WILCOX ENTERPRISES, INC. as Borrower




 


	 	By: 	




	 	Name:




	 	Title:




 






     


     


    

 


SCHEDULE A TO COMPLIANCE CERTIFICATE


 


Calculations


 






     


     


    

 


EXHIBIT I TO COMPLIANCE CERTIFICATE


 


Updates to Schedules