EXECUTION
VERSION


 


SIXTH AMENDMENT


TO


FINANCING AGREEMENT


 


THIS SIXTH AMENDMENT
TO FINANCING AGREEMENT (this “Amendment”), dated as of March 15, 2011 (the “Effective Date”),
by and among ENVIRONMENTAL QUALITY MANAGEMENT, INC., an Ohio corporation (“EQMI”), EQ ENGINEERS, LLC, an Indiana
limited liability company (“EQE” and together with EQMI, each a “Borrower” and collectively,
“Borrowers”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association (“Bank”),
is as follows:


 


Preliminary Statements


 


A.           Borrowers
and Bank are parties to a Financing Agreement dated as of October 31, 2006, as amended by the First Amendment to Financing Agreement
dated as of October 1, 2007, the Second Amendment to Financing Agreement dated as of September 12, 2008, the Third Amendment to
Financing Agreement dated as of February 10, 2009, the Fourth Amendment to Financing Agreement dated as of December 29, 2010, and
the Fifth Amendment to Financing Agreement dated as of February 4, 2011 (as amended, the “Financing Agreement”).
Capitalized terms which are used, but not defined, in this Amendment will have the meanings given to them in the Financing Agreement.


 


B.           Borrowers
have requested that Bank: (i) consent to the Additional Beacon Transaction (as defined in Section 2 below) and (ii) make
certain other changes to the Financing Agreement and certain of the other Loan Documents, all as more specifically set forth herein.


 


C.           Bank
is willing to consent to such requests and so amend the Financing Agreement and other Loan Documents, all as contemplated by the
terms, and subject to the conditions, of this Amendment.


 


Statement of Amendment


 


In consideration of
the covenants, agreements, and conditions set forth in this Amendment, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Bank and Borrowers hereby agree as follows:


 


1.          Amendments
to Financing Agreement. Subject to the satisfaction of the conditions of this Amendment, the Financing Agreement is hereby
amended as follows:


 


1.1           Section
1.1 of the Financing Agreement is hereby amended by the addition of the following new definitions, in their proper alphabetical
order, to provide in their respective entireties as follows:


 



    	 



    	 



    

 


“Additional
Beacon Noteholder Subordinated Debt” means the Subordinated Debt (as defined in the Additional Beacon Noteholder Subordination
Agreement).


 


“Additional
Beacon Noteholder Subordinated Debt Default” means any of the following (or any combination of the following): (a) the
occurrence and continuance of a Subordinated Debt Default (as defined in the Additional Beacon Noteholder Subordination Agreement)
or (b) any acceleration of any of the Additional Beacon Noteholder Subordinated Debt.


 


“Additional
Beacon Noteholder Subordinated Debt Documents” means the Subordinated Debt Documents (as defined in the Additional Beacon
Noteholder Subordination Agreement).


 


“Additional
Beacon Noteholder Subordinated Notes” means each of, and collectively, the Subordinated Debt Notes (as defined in the
Additional Beacon Noteholder Subordination Agreement).


 


“Additional
Beacon Noteholder Subordination Agreement” means the Subordination Agreement dated as of the Sixth Amendment Effective
Date among the Additional Beacon Subordinated Noteholders and Bank.


 


“Additional
Beacon Subordinated Noteholders” means each of, and collectively: (i) Argentum Capital Partners II, L.P., on behalf of
itself and as Subordinated Lender Agent (as defined in the Additional Beacon Noteholder Subordination Agreement), (ii) Argentum
Capital Partners, L.P., (iii) Walter H. Barandiaran, (iv) CGM IRA Custodian FBO Daniel Raynor, (v) Trust U/W Arnold Raynor FBO
Daniel Raynor, (vi) Jack S. Greber, (vii) Robert R. Galvin, (viii) James E. Wendle, (ix) Joseph P. Hoffman, (x) James G. Zody,
(xi) Mathers Associates, (xii) Robert L. Frome, (xiii) Charles Hallinan, (xiv) Kurien Jacob, (xv) Lawrence Kaplan, (xvi) Andrew
C. Peskoe, (xvii) Lawrence J. Rubinstein Camille S. Rubinstein JTWROS, (xviii) Michael Miller, (xix) Eileen A. Kaplan, (xx) Futurtec
L.P., (xxi) Matthew Burr 1985 Trust, (xxii) Lander Burr 1985 Trust, (xxiii) each of the other Persons that becomes a “Subordinated
Lender” under the Additional Beacon Noteholder Subordination Agreement after the Sixth Amendment Effective Date pursuant
to such Person’s execution and delivery of the Joinder Agreement (as defined in the Additional Beacon Noteholder Subordination
Agreement), all in accordance with the terms and conditions of the Additional Beacon Noteholder Subordination Agreement and the
Sixth Amendment to this Agreement, and (xxiv) as applicable, their respective heirs, beneficiaries, successors, and assigns.


 


“Sixth
Amendment Effective Date” means the Effective Date (as defined in the Sixth Amendment to this Agreement).


 



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1.2           The
following definition in Section 1.1 of the Financing Agreement is hereby amended in its entirety by substituting the following
in its place:


 


			“Loan Documents” means this Agreement, the Joinder Agreement, the Revolving
Loan Note, the Security Agreements, the Letter of Credit Documents, each Insurance Agreement and Life Insurance Assignment (as
defined in Section 5.2), the Cross-Guaranties, the Parent Guaranty, the Parent Pledge Agreement, the Beacon Texas Guaranty
(if any), the Beacon Texas Deed of Trust (if any), the Beacon Texas Security Agreement (if any), the Kemner Subordination Agreement,
the Fox Subordination Agreement, the Beacon Aguero Subordination Agreement, the Beacon Noteholder Subordination Agreement, the
Additional Beacon Noteholder Subordination Agreement, the documents, instruments and agreements executed in connection with the
Federal Assignment of Claims Act and any state Assignment of Claims Law, and all other agreements, instruments and documents relating
to the Loans, including mortgages, deeds of trust, security agreements, subordination agreements, intercreditor agreements, pledges,
powers of attorney, consents, collateral assignments, locked box and cash management agreements, letter agreements, contracts,
notices, leases, financing statements and letters of credit and applications therefor and all other writings, all of which must
be in form and substance satisfactory to Bank, which have been, are as of the date of this Agreement, or will in the future be
signed by, or on behalf of, any one or more Borrowers and delivered to Bank.



 


1.3         Section
9.18 of the Financing Agreement is hereby amended in its entirety by substituting the following in its place:


 


			9.18         Capitalization; Warrants. Schedule
9.18 sets forth the number of shares of Capital Stock of Borrowers and Parent which are authorized and the number of such shares
which are outstanding. Each outstanding share of Capital Stock is a common share and is duly authorized, validly issued, fully
paid and nonassessable. Set forth in Schedule 9.18 is a complete and accurate list of all Persons who are record and beneficial
owners of the Capital Stock of Borrowers and Parent. All warrants, subscriptions, options, instruments, rights and agreements under
which any shares of Capital Stock of Borrowers or Parent are or may be redeemed, retired, converted, encumbered, bought, sold or
issued are described in Schedule 9.18.



 


1.4         Section
12.1(i)(s) of the Financing Agreement is hereby amended in its entirety by substituting the following in its place:


 



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(s)          (i)
There occurs an EQE Acquisition Debt Default which has not been waived in writing by the applicable EQE Seller; (ii) there occurs
a Fox Subordinated Debt Default which has not been waived in writing by the Fox Seller; (iii) there occurs a Kemner Subordinated
Debt Default which has not been waived in writing by the Kemner Seller; (iv) the Fox Seller defaults under the Fox Subordination
Agreement or the Fox Seller denies his obligations under the Fox Subordination Agreement; (v) any Kemner Seller defaults under
the Kemner Subordination Agreement or any Kemner Seller denies its obligations under the Kemner Subordination Agreement; (vi) either
of the Fox Subordination Agreement or the Kemner Subordination Agreement is terminated or ceases, for any reason, to be in full
force and effect (other than as agreed in writing by Bank or in accordance with its express terms); (vii) there occurs a Beacon
Aguero Subordinated Debt Default which has not been waived in writing by Mr. Aguero; (viii) Mr. Aguero defaults under the Beacon
Aguero Subordination Agreement or Mr. Aguero denies his obligations under the Beacon Aguero Subordination Agreement; (ix) there
occurs a Beacon Noteholder Subordinated Debt Default which has not been waived in writing by the Beacon Subordinated Noteholders;
(x) any Beacon Subordinated Noteholder defaults under the Beacon Noteholder Subordination Agreement or any Beacon Subordinated
Noteholder denies his, her or its obligations under the Beacon Noteholder Subordination Agreement; (xi) there occurs an Additional
Beacon Noteholder Subordinated Debt Default which has not been waived in writing by the Additional Beacon Subordinated Noteholders;
(xii) any Additional Beacon Subordinated Noteholder defaults under the Additional Beacon Noteholder Subordination Agreement or
any Additional Beacon Subordinated Noteholder denies his, her or its obligations under the Additional Beacon Noteholder Subordination
Agreement; or (xiii) any of the Beacon Aguero Subordination Agreement, the Beacon Noteholder Subordination Agreement, or the Additional
Beacon Noteholder Subordination Agreement is terminated or ceases, for any reason, to be in full force and effect (other than as
agreed in writing by Bank or in accordance with its express terms); or


 


1.5           Schedule
9.18 to the Financing Agreement is hereby amended in its entirety by substituting the document attached hereto as Schedule
9.18 in its place.


 


2.          Consents
by Bank. Borrowers have requested that Bank consent to the Additional Beacon Noteholder Subordinated Debt (as defined in
Section 1.1 of this Amendment), in an aggregate amount of up to $3,000,000 (collectively, the “Additional Beacon
Transaction”), as required under the Financing Agreement and the other Loan Documents. Subject to the terms, and on the
conditions, of this Amendment, Bank hereby consents to the Additional Beacon Transaction. The consent provided in this Section
2, either alone or together with other consents which Bank may give from time to time, shall not, by course of dealing, implication
or otherwise, obligate Bank to consent to any other incurrence of Indebtedness otherwise prohibited by the Financing Agreement
or the other Loan Documents, in any case past, present or future, other than that specifically consented to by this Amendment,
or reduce, restrict or in any way affect the discretion of Bank in considering any future consent requested by Borrowers.


 



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3.          Conditions;
Other Documents.


 


3.1           As
a condition precedent to the effectiveness of this Amendment and the consent delineated in Section 2 of this Amendment,
with the signing of this Amendment, Borrowers will deliver, or cause to be delivered, to Bank, all in form and substance satisfactory
to Bank: (i) the Additional Beacon Noteholder Subordination Agreement, duly executed by the Additional Beacon Subordinated Noteholders
in existence on the Effective Date; (ii) copies, certified by the Secretary of each Borrower, of resolutions of the Board of Directors
or managers, as applicable, of such Borrower, authorizing the execution of this Amendment and the other Sixth Amendment Documents
(as defined below) to which such Borrower is a party; (iii) the Reaffirmation of Guaranty and Security set forth after the signatures
below, duly executed by Parent; (iv) a copy, certified by the Secretary of Parent, of resolutions of the Board of Directors of
Parent, authorizing the execution of the Reaffirmation of Guaranty and Security referenced in the immediately preceding clause;
(v) the Reaffirmation of Subordination set forth after the signatures below, duly executed by Argentum; (vi) the Reaffirmation
of Subordination set forth after the signatures below, duly executed by Argentum, as agent on behalf of the Beacon Subordinated
Noteholders; and (vii) such other documents, instruments, and agreements deemed necessary by Bank to effect the amendments to Borrowers’
credit facilities with Bank contemplated by this Amendment.


 


3.2           With
respect to any Additional Beacon Noteholder Subordinated Debt made to an Additional Beacon Subordinated Noteholder after the Effective
Date, and as a condition to Lender’s consent to such Additional Beacon Noteholder Subordinated Debt, Borrowers shall deliver,
or cause to be delivered to Lender, as applicable, contemporaneously with the consummation of such Additional Beacon Noteholder
Subordinated Debt, in each case in form and substance satisfactory to Lender: (a) the Joinder Agreement (as defined in the Additional
Beacon Noteholder Subordination Agreement), duly executed by the applicable Joining Subordinated Lender (as defined in the Additional
Beacon Noteholder Subordination Agreement); (b) fully executed copies of the applicable Joining Subordinated Debt Note (as defined
in the Additional Beacon Noteholder Subordination Agreement) and the other Additional Beacon Noteholder Subordinated Debt Documents,
if any, executed and/or delivered in connection therewith; (c) evidence that the principal amount of such Additional Beacon Noteholder
Subordinated Debt, together with the unpaid principal balance of all other Additional Beacon Noteholder Subordinated Debt in existence
as of such date of determination, does not exceed an aggregate principal amount equal to $3,000,000; and (d) such other documents,
instruments, and agreements deemed necessary or desirable by Bank in good faith in connection therewith.


 


4.          Representations.
To induce Bank to accept this Amendment, Borrowers hereby represent and warrant to Bank as follows:


 



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4.1           Each
Borrower has full power and authority to enter into, and to perform its obligations under, as applicable, this Amendment and the
other Loan Documents executed, amended, or amended and restated in connection herewith (collectively, the “Sixth Amendment
Documents”) and the execution and delivery of, and the performance of its obligations under and arising out of, each
applicable Sixth Amendment Document has been duly authorized by all necessary corporate or limited liability company action, as
applicable.


 


4.2           Each
Sixth Amendment Document, as applicable, constitutes the legal, valid and binding obligations of such Borrower enforceable in accordance
with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting
creditors’ rights generally.


 


4.3           Each
of Borrowers’ representations and warranties contained in the Loan Documents are complete and correct in all material respects
as of the date of this Amendment with the same effect as though these representations and warranties had been made again on and
as of the date of this Amendment (except where such representations and warranties speak solely as of an earlier date), subject
to those changes as are not prohibited by, or do not constitute Events of Default under, the Financing Agreement.


 


4.4           No
Event of Default has occurred and is continuing under the Financing Agreement.


 


5.          Costs
and Expenses. As a condition of this Amendment, Borrowers will promptly on demand pay or reimburse Bank for the costs and
expenses incurred by Bank in connection with this Amendment, including, without limitation, Attorneys’ Fees.


 


6.          Release.
Each Borrower hereby releases Bank from any and all liabilities, damages and claims arising from or in any way related to the Obligations
or the Loan Documents, other than such liabilities, damages and claims which arise after the execution of this Amendment. The foregoing
release does not release or discharge, or operate to waive performance by, Bank of its express agreements and obligations stated
in the Loan Documents on and after the date of this Amendment.


 


7.          Default.
Any default by Borrowers in the performance of Borrowers’ obligations under this Amendment shall constitute an Event of Default
under the Financing Agreement.


 


8.          Continuing
Effect of the Financing Agreement; Security. Except as expressly amended hereby, all of the provisions of the Financing
Agreement are ratified and confirmed and remain in full force and effect. Borrowers and Bank hereby expressly intend that this
Amendment shall not in any manner: (a) constitute the refinancing, refunding, payment or extinguishment of the Obligations evidenced
by the existing Loan Documents; (b) be deemed to evidence a novation of the outstanding balance of the Obligations; or (c) replace,
impair, or extinguish the creation, attachment, perfection or priority of the Liens on the Loan Collateral granted pursuant to
the Loan Documents. Each Borrower ratifies and reaffirms any and all grants of Liens to Bank on the Loan Collateral as security
for the Obligations, and each Borrower acknowledges and confirms that the grants of the Liens to Bank on the Loan Collateral: (i)
represent continuing Liens on all of the Loan Collateral, (ii) secure all of the Obligations, and (iii) represent valid, first
and best Liens on all of the Loan Collateral except to the extent, if any, of the Permitted Liens.


 



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9.          One
Agreement; References; Fax Signature. The Financing Agreement, as amended by this Amendment, will be construed as one agreement.
All references in any of the Loan Documents to the Financing Agreement will be deemed to be references to the Financing Agreement
as amended by this Amendment. This Amendment may be signed by facsimile signatures or other electronic delivery of an image file
reflecting the execution thereof, and if so signed, (i) may be relied on by each party as if the documents were a manually signed
original and (ii) will be binding on each party for all purposes.


 


10.         Captions.
The headings to the Sections of this Amendment have been inserted for convenience of reference only and shall in no way modify
or restrict any provisions hereof or be used to construe any such provisions.


 


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


 


12.         Entire
Agreement. This Amendment, together with the other Loan Documents, sets forth the entire agreement of the parties with
respect to the subject matter of this Amendment and supersedes all previous understandings, written or oral, in respect of this
Amendment.


 


13.         Governing
Law. This Amendment shall be governed by and construed in accordance with the internal laws of the State of Ohio (without
regard to Ohio conflicts of law principles).


 


14.         Reaffirmation
of Cross-Guaranty. Each Borrower hereby: (i) ratifies and reaffirms the Cross-Guaranty and (ii) acknowledges and agrees
that no Borrower is released from its obligations under the Cross-Guaranty by reason of this Amendment or the other Loan Documents
and that the obligations of each Borrower under the Cross-Guaranty extend, among other Obligations of Borrowers to Lender, to the
Obligations of Borrowers under this Amendment and other Loan Documents.


 


[Signature Page Follows]


 



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IN WITNESS WHEREOF,
this Amendment has been duly executed by Borrowers as of the Effective Date.


 


	 	ENVIRONMENTAL QUALITY 

MANAGEMENT, INC. 
	 	 
	 	By:	/s/ Jack S. Greber
	 	 	Jack S. Greber, Chief Executive Officer
	 	 
	 	EQ ENGINEERS, LLC
	 	 
	 	By: 	/s/ Jack S. Greber
	 	 	Jack S. Greber, Manager


 


Accepted at Cincinnati, Ohio


as of the Effective Date.


 


	U.S. BANK NATIONAL ASSOCIATION
	 
	By: 	/s/ Aaron R. Sceva
	 	Aaron R. Sceva, Banking Officer