Document:

Unassociated Document

    EXHIBIT 10.1

     

    CONSENT
AND AMENDMENT NO. 1

    TO
THIRD AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

     

    THIS
CONSENT AND AMENDMENT NO. 1 TO THIRD AMENDED AND RESTATED LOAN AND SECURITY
AGREEMENT ("Amendment") is dated as of May 19, 2010 and is by and among the
parties identified as Lenders on the signature pages hereto ("Lenders") and Bank
of America, N.A., as Agent ("Agent"), for Lenders, on the one hand, and Wabash
National Corporation, a Delaware corporation, Wabash National, L.P., a Delaware
limited partnership, Wabash Wood Products, Inc. (f/k/a WNC Cloud Merger Sub,
Inc.), an Arkansas corporation, FTSI Distribution Company, L.P., a Delaware
limited partnership, and Transcraft Corporation, a Delaware corporation
(collectively, "Borrowers")
on the other hand.  Capitalized terms used herein but not otherwise
defined herein shall have the respective meanings assigned to such terms in the
Loan Agreement referred to herein below.

     

    WITNESSETH:

     

    WHEREAS,
Agent, Lenders and Borrowers are parties to a Third Amended and Restated Loan
and Security Agreement, dated as of July 17, 2009 (as the same has been and may
be amended, or modified from time to time, the "Loan Agreement"), pursuant to
which Lenders have agreed to make certain loans and other financial
accommodations to or for the account of Borrowers;

     

    WHEREAS,
Borrowers have informed Agent and each Lender that on or before May 31, 2010,
(a) Wabash desires to issue new shares of common stock for cash consideration of
at least $75,000,000, pursuant to the terms set forth in the Form S-3 filed on
April 30, 2010 by Wabash with the Securities and Exchange Commission, as amended
or supplemented from time to time and (b) Wabash desires to redeem all of
the Series E-G  Preferred Stock (including
payment of accrued dividends and early redemption premium payable pursuant to
the Preferred Investment Documents (but with respect to the early redemption
premium as if the redemption occurred between the first and second anniversary
of the issuance of the Series E-G Preferred Stock)) in an amount not to exceed
$48,000,000 payable with the proceeds of the equity issuance set forth in clause
(a) above and to file certificates of termination terminating the Series E-G
Preferred Stock (collectively, the "Recapitalization
Transactions");

     

    WHEREAS,
in absence of the prior written consent of Agent and Lenders, the
Recapitalization Transactions would cause certain Events of Default under
Section 10.1.3 of the Loan Agreement due to certain violations of Sections
3.3.4, 8.2.7 and 8.2.15 of the Loan Agreement;

     

    WHEREAS,
Borrowers have requested that Agent and Lenders (i) consent to the
Recapitalization Transactions and (ii) amend the Loan Agreement in certain
respects; and

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    WHEREAS,
Agent and Lenders have agreed to (i) consent to the Recapitalization
Transactions and (ii) amend the Loan Agreement in certain respects on the
terms and subject to the conditions hereinafter set forth;

     

    NOW,
THEREFORE, in consideration of the premises set forth above, the terms and
conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the respective parties
hereto hereby agree as follows:

     

    1.         
  Consent.  Subject
to the satisfaction of the conditions set forth in Section 4 below, and in
reliance on the representations set forth in Section 5 below, Agent and Lenders
hereby consent to the Recapitalization Transactions; provided that no less than
$23,000,000 (plus an amount equal to the net cash proceeds in excess of
$75,000,000 received by Borrowers in connection the equity issuance contemplated
by the Recapitalization Transactions) of the cash proceeds obtained by Wabash in
connection with the consummation of the Recapitalization Transactions shall be
used to repay outstanding principal of the Revolving Credit Loans (but shall not
permanently reduce the Revolving Loan Commitments).  The foregoing is
a limited consent and, other than as expressly set forth herein, shall not
constitute a consent or waiver of any other Event of Default or Default that is
now in existence or that may hereafter occur, or any rights or remedies that may
be available to Agent or Lenders under the Loan Agreement, the other Loan
Documents or applicable law with respect thereto, all of which rights and
remedies are hereby specifically reserved.

     

    2.           
Amendments.  Subject
to the satisfaction of the conditions set forth in Section 4 below, and in
reliance upon the representations and warranties set forth in Section 5 below,
the Loan Agreement is hereby amended as follows:

     

    (a)      
    Section 2.10 of the Loan Agreement is hereby amended by
amending and restating the third sentence of such section, as
follows:

     

    At
Borrowers' joint and several expense, as requested by Agent or Majority Lenders
in their reasonable credit judgment, Agent shall (a) obtain one (1) desk
top appraisal of the Inventory and the Trailer Inventory of the Companies
conducted by a third party appraiser reasonably acceptable to Agent in any
calendar year, which appraisals shall include an assessment of the net orderly
liquidation percentage of each category or type of Inventory and Trailer
Inventory, (b) obtain one (1) appraisal of the Inventory and the Trailer
Inventory of the Companies from a third party appraiser reasonably acceptable to
Agent in any calendar year, which appraisals shall include an assessment of the
net orderly liquidation percentage of each category or type of Inventory and
Trailer Inventory and (c) obtain one (1) appraisal of the fixed assets of the
Companies from a third party appraiser reasonably acceptable to Agent in any
calendar year; provided that if an Event of Default has occurred and is
continuing, Agent may obtain such additional appraisals and appraisals in its
reasonable discretion.

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    (b)    
     Section 3.3.1 of the Loan Agreement is hereby
amended by amending and restating the final sentence of such section, as
follows:

     

    In
addition, if the Collateral subject to such sale, loss, damage, destruction or
condemnation consists of (a) Eligible Accounts, Eligible Inventory or
Eligible Trailer Inventory, at all times such prepayment shall be specifically
applied against any limits or sublimits contained in the Borrowing Base that are
predicated on such Collateral and (b) Real Property, Equipment or other
fixed assets, such proceeds that (i) exceed $1,000,000 in the aggregate in
any calendar year shall reduce dollar for dollar the amount of the Maximum Fixed
Asset Amount in an amount equal to such excess or (ii) total at least
$500,000 with respect to any individual sale, loss, damage, destruction or
condemnation shall reduce dollar for dollar the Maximum Fixed Asset Amount in an
amount equal to such sale, loss, damage, destruction or condemnation; provided,
however, that notwithstanding anything to the contrary set forth herein no
reduction in the amount of the Maximum Fixed Asset Amount shall occur in
connection with the sale of Real Property located at 3379 Owingsville Road, Mt.
Sterling, KY.

     

    (c)       
   Section 8.2.7 of the Loan Agreement is hereby amended by
deleting clauses (vi) through (vii) thereof.

     

    (d)       
  A new Section 8.3 is hereby added to the Loan Agreement as
follows:

     

    8.3           Specific
Financial Covenants.

     

    During
the Term, and thereafter for so long as there are any Obligations outstanding,
each Borrower covenants that it shall comply with all of the financial covenants
set forth in Exhibit 8.3 hereto.  If GAAP changes from the basis
used in preparing the audited financial statements delivered to Agent by
Borrowers on or before any applicable testing date, Borrowers will provide Agent
with certificates demonstrating compliance with such financial covenants and
will include, at the election of Borrowers or upon the request of Agent,
calculations setting forth the adjustments necessary to demonstrate how
Borrowers are also in compliance with such financial covenants based upon GAAP
as in effect prior to such change in GAAP.  At any time that Borrowers
are subject to the financial covenants set forth in Exhibit 8.3 hereto, no
Borrower shall (a) adjust deductions from EBITDA from any period subject to such
financial covenants to any period not subject to such financial covenants or (b)
adjust additions to EBITDA from any period not subject to such financial
covenants to any period subject to such financial covenants.

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    (e)          A
new Section 9.2.3 is hereby added to the Loan Agreement as follows:

     

    9.2.3       Financial
Covenants.  With respect to any request for any Loan, any
Letter of Credit or any LC Guaranty that would cause Availability to be or
remain less than the Availability thresholds set forth on Exhibit 8.3, Borrowers
shall be in compliance with each of the financial covenants set forth on Exhibit
8.3 as of the last day of the most recent calendar month for which financial
statements have been delivered to Agent pursuant to paragraph (ii) of subsection
8.1.3.

     

    (f)        
   Section 12.8 of the Loan Agreement is hereby amended by
deleting "Hogan & Hartson LLP" through "Facsimile No.: (410) 539-6981" and
inserting in lieu thereof the following:

     

    Hogan
Lovells US LLP

    100
International Drive, Suite 2000

    Baltimore,
Maryland 21202

    Attention:  Michael
J. Silver, Esq.

    Facsimile
No.:  (410) 659-2701

     

    (g)      
  Appendix A to the Loan Agreement is hereby amended by amending the
definition of "Permitted Acquisition" therein by (i) deleting the reference to
"and" at the end of clause (h) of such definition, (ii) deleting "." at the end
of clause (i) of such definition and inserting "; and" in lieu thereof and (iii)
adding the following new clause (j) to such definition, as follows:

     

    (j)           after
giving effect to the proposed acquisition, Borrowers are in compliance with each
of the financial covenants set forth in Section 8.3
on a pro forma, but unadjusted, basis through the termination of the
Agreement.

     

    (h)     
   Appendix A to the Loan Agreement is hereby amended by amending
and restating the following definitions therein:

     

    Borrowing
Base - as at any date of determination thereof, an amount equal to the
lesser of:

     

    (i)      the
Revolving Credit Maximum Amount; or

     

    (ii)     an
amount equal to the sum of

     

    
      	
               
      

            	
              (a)

            	
              85% of the net amount of Eligible Accounts
      outstanding at such date; plus

            

    

     

    
      	
               
      

            	
              (b)

            	
              the least of (i) 85% of the net orderly
      liquidation percentage of Eligible Inventory at such date and
      (ii) the sum of (A) 85% of the net orderly liquidation value of
      Eligible Trailer Inventory at such date, plus
      (B) 70% of the value of Eligible Inventory consisting of raw
      materials or parts at such date, plus
      (C) 50% of the value of Eligible Inventory consisting of
      work-in-process at such date; plus

            

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (c)

            	
              the
      Maximum Fixed Asset Amount.

            

    

     

    For
purposes hereof, (1) the net amount of Eligible Accounts at any time shall
be the face amount of such Eligible Accounts less any and all returns, rebates,
discounts (which may, at Agent's option, be calculated on shortest terms),
credits, allowances or excise taxes of any nature at any time issued, owing,
claimed by Account Debtors, granted, outstanding or payable in connection with
such Accounts at such time, (2) the amount of Eligible Inventory and
Eligible Trailer Inventory shall each be determined on a first-in, first-out,
lower of cost or market basis in accordance with GAAP, net of intercompany
charges, (3) the net orderly liquidation percentage of Eligible Inventory
shall be determined by a third party appraiser reasonably acceptable to Agent
and shall be as reflected in the most recent appraisal delivered to Agent under
the Agreement, and (4) the net orderly liquidation value of Eligible
Trailer Inventory shall be determined by a third party appraiser reasonably
acceptable to Agent and shall be reflected in the most recent appraisal
delivered to Agent under the Agreement.

     

    Maximum
Fixed Asset Amount – means an amount equal to $17,800,000, which number
shall be reduced (i) by $400,000 on each of July 1, 2010 and
October 1, 2010, (ii) by $750,000 on each of January 1, 2011,
April 1, 2011, July 1, 2011 and October 1, 2011 and (iii) by
$1,000,000 on each of January 1, 2012, April 1, 2012 and July 1,
2012.

     

    Preferred
Investment Documents – means collectively, (i) the Securities
Purchase Agreement dated as of the date hereof by and between Wabash and
Lincolnshire as may be amended from time to time; (ii) the Investor Rights
Agreement dated as of the Closing Date by and between Wabash and Lincolnshire as
may be amended from time to time; and (iii) the Warrant to Purchase Shares
of Common Stock dated as of the Closing Date by and between Wabash and
Lincolnshire as may be amended from time to time and as may be transferred in
whole or in part from time to time in accordance with its
terms.

     

    (i)           Appendix
A to the Loan Agreement is hereby amended by deleting the definition of "Series
E-G Preferred Stock" in its entirety.

     

    (j)           Exhibit
8.1.3 to the Loan Agreement is hereby amended and restated in their entirety as
set forth on Exhibit 8.1.3 hereof.

     

    (k)       
  A new Exhibit 8.3 is hereby added to the Loan Agreement as set forth
on Exhibit 8.3 hereof.

     

    3.           Scope of
Amendment.  Subject to the satisfaction of the conditions set
forth in Section 4 below and in reliance upon the representations and warranties
of Borrowers set forth in Section 5 below, this Amendment shall have the effect
of amending the Loan Agreement as appropriate to express the agreements
contained herein.  In all other respects, the Loan Agreement and the
other Loan Documents shall remain in full force and effect in accordance with
their respective terms.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

     

    4.        
   Conditions
to Effectiveness.  The effectiveness of this Amendment and the
amendments contained herein are subject to the satisfaction of the following
conditions precedent or concurrent:

     

    (a)     
    Agent shall have received a copy of this Amendment
executed by Borrowers and Lenders, together with the Consent and Reaffirmation
attached hereto;

     

    (b)     
    Agent shall have received for the pro rata benefit of
each Lender party hereto, an amendment fee in the aggregate amount of $250,000;
and

     

    (c)     
    No Default or Event of Default shall be in existence
(after giving effect to this Amendment).

     

    5.           Representations
and Warranties.  To induce Agent and Lenders to execute and
deliver this Amendment, Borrowers hereby represent and warrant to Agent and
Lenders that, after giving effect to this Amendment:

     

    (a)      
   All representations and warranties contained in the Loan
Agreement and the other Loan Documents are true and correct in all material
respects (or true and correct in all respects with respect to representation and
warranties expressly qualified by materiality or Material Adverse Effect) on and
as of the date of this Amendment, in each case as if then made, other than
representations and warranties that expressly relate solely to an earlier date
(in which case such representations and warranties remain true and accurate on
and as of such earlier date);

     

    (b)    
     No Default or Event of Default has occurred which
is continuing (after giving effect to this Amendment);

     

    (c)         This
Amendment, and the Loan Agreement, as amended hereby, constitute legal, valid
and binding obligations of Borrowers and are enforceable against Borrowers in
accordance with their respective terms; and

     

    (d)         The
execution and delivery by Borrowers of this Amendment does not require the
consent or approval of any Person, except such consents and approvals as have
been obtained.

     

    6.           Release.  As
a material part of the consideration for Agent and Lenders entering into this
Amendment and in order to induce Lenders to extend credit pursuant to the Loan
Agreement, on the date hereof each Borrower and each Guarantor executing a
Consent and Reaffirmation attached hereto,  hereby releases and
forever discharges Agent and each Lender and Agent's and each Lender's
directors, officers, employees, agents, attorneys, affiliates, subsidiaries,
successors and assigns from any and all liabilities, obligations, actions,
contracts, claims, causes of action, damages, demands, costs and expenses
whatsoever (collectively "Claims"), of every kind and nature, however evidenced
or created, whether known or unknown, arising prior to or on the date of this
Amendment including, but not limited to, any Claims involving the extension of
credit under the Loan Agreement or administration of the Loan Documents, as each
may be amended, the indebtedness incurred by any Borrower or any Guarantor or
any other transactions evidenced by this Amendment, the Loan Agreement or the
other Loan Documents.

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    7.          Governing
Law.  THE VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS
AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL
LAWS AND DECISIONS OF THE STATE OF ILLINOIS, WITHOUT REGARD TO CONFLICT OF LAWS
PRINCIPLES.

     

    8.        
   Headings.  Section
headings in this Amendment are included herein for convenience of reference only
and shall not constitute a part of this Amendment for any other
purpose.

     

    9.           Counterparts.  This
Amendment may be executed in any number of counterparts and by the different
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all of which shall together constitute one
and the same instrument.  Any such counterpart which may be delivered
by facsimile transmission shall be deemed the equivalent of an originally signed
counterpart and shall be fully admissible in any enforcement proceedings
regarding this Amendment.

     

    [Signature pages to
follow]

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered by their proper and duly authorized officers as of the
date first set forth above.

     

    
      
        	
                BANK OF
      AMERICA, N.A.,

              
	
                as
      Agent and as a Lender

              
	 
      
	
                By:

              	
                /s/Jason
      Riley

              
	
                Name: 

              	
                Jason
      Riley

              
	
                Title:

              	
                Senior
      Vice President

              

      

    

     

    
      Signature
Page to Consent and Amendment No. 1 to Third Amended and Restated Loan and
Security Agreement

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        	
                FIFTH
      THIRD BANK

              
	
                as
      a Lender

              
	 
      
	
                By:

              	
                /s/David
      O’Neal

              
	
                Name: 

              	
                David
      O’Neal

              
	
                Title:

              	
                Vice
      President

              

      

    

     

    
      Signature
Page to Consent and Amendment No. 1 to Third Amended and Restated Loan and
Security Agreement

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        	
                WELLS
      FARGO CAPITAL FINANCE, LLC

              
	
                (f/k/a Wells
      Fargo Foothill, LLC) as
Syndication

              
	
                Agent
      and as a Lender

              
	 
      
	
                By:

              	
                /s/Krista
      Wade

              
	
                Name: 

              	
                Krista
      Wade

              
	
                Title

              	
                Vice
      President

              

      

    

     

    
      Signature
Page to Consent and Amendment No. 1 to Third Amended and Restated Loan and
Security Agreement

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        	
                JPMORGAN
      CHASE BANK, N.A.,

              
	
                as
      Documentation Agent and as a Lender

              
	 
      
	
                By:

              	
                /s/ Michael P.
      Gutia

              
	
                Name: 

              	
                Michael
      P. Gutia

              
	
                Title:

              	
                Vice
      President

              

      

    

     

    
      Signature
Page to Consent and Amendment No. 1 to Third Amended and Restated Loan and
Security Agreement

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        	
                GENERAL
      ELECTRIC CAPITAL

              
	
                CORPORATION,
      as a Lender

              
	 
      
	
                By:

              	
                /s/ Rebecca L.
      Milligan

              
	
                Name: 

              	
                Rebecca
      L. Milligan

              
	
                Title:

              	
                Duly
      Authorized Signatory

              

      

    

     

    
      Signature
Page to Consent and Amendment No. 1 to Third Amended and Restated Loan and
Security Agreement

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        	
                PNC BANK,
      National Association, including as

              
	
                successor
      to National City Business Credit, Inc., as a

              
	
                Lender

              
	 
      
	
                By:

              	
                /s/Todd W.
      Milenius

              
	
                Name: 

              	
                Todd
      W. Milenius

              
	
                Title:

              	
                Vice
      President

              

      

    

     

    
      Signature
Page to Consent and Amendment No. 1 to Third Amended and Restated Loan and
Security Agreement

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        	
                WABASH
      NATIONAL CORPORATION, as a

                Borrower

              
	 
      
	
                By:

              	
                /s/ Mark J.
      Weber

              
	
                Name:  

              	
                Mark
      J. Weber

              
	
                Title:

              	
                Senior
      Vice President – CFO,
Treasurer

              

      

    

     

    
      
        
          	
                  WABASH
      NATIONAL, L.P., as a Borrower

                
	 
      
	
                  By:

                	
                  Wabash
      National Trailer Centers, Inc.,

                
	 
      	
                  its
      General Partner

                
	 
      	 
      
	
                  By:

                	
                  /s/ Mark J.
      Weber

                
	
                  Name:  

                	
                  Mark
      J. Weber

                
	
                  Title:

                	
                  Vice
      President, Treasurer, Controller

                
	 
      	 
      
	
                  WABASH
      WOOD PRODUCTS, INC. (f/k/a

                
	
                  WNC Cloud
      Merger Sub, Inc.), as a Borrower

                
	 
      
	
                  By:

                	
                  /s/ Mark J.
      Weber

                
	
                  Name:

                	
                  Mark
      J. Weber

                
	
                  Title:

                	
                  Vice
      President, Treasurer

                
	 
      	 
      
	
                  FTSI
      DISTRIBUTION COMPANY, L.P., as a

                
	
                  Borrower

                
	 
      
	
                  By:

                	
                  Wabash
      National Trailer Centers Inc.,

                
	 
      	
                  its
      General Partner

                
	 	 
	
                  By:

                	
                  /s/ Mark J.
      Weber

                
	
                  Name:

                	
                  Mark
      J. Weber

                
	
                  Title:

                	
                  Vice
      President, Treasurer, Controller

                
	 
      
	
                  TRANSCRAFT
      CORPORATION, as a Borrower

                
	 
      
	
                  By:

                	
                  /s/ Mark J.
      Weber

                
	
                  Name:

                	
                  Mark
      J. Weber

                
	
                  Title:

                	
                  Vice
      President, Treasurer

                

        

      

    

     

    
      Signature
Page to Consent and Amendment No. 1 to Third Amended and Restated Loan and
Security Agreement

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

     

    EXHIBIT
8.1.3

     

    COMPLIANCE
CERTIFICATE

     

    [_________________________]

     

    __________________,
___

     

    Bank
of America, N.A., as Agent

    One
South Wacker Drive

    Suite
3400

    Chicago,
Illinois  60606

     

    The
undersigned, the [Chief Financial
Officer/Treasurer/Assistant Treasurer] of Wabash National Corporation
("Wabash"), gives this certificate to Bank of America, N.A., in its capacity as
Agent ("Agent") in accordance with the requirements of subsection 8.1.3 of
that certain Third Amended and Restated Loan and Security Agreement dated July
17, 2009 among Wabash, as a Borrower, the Subsidiaries of Wabash party thereto
as Borrowers, Wells Fargo Foothill, LLC, individually as a Lender and as a
Syndication Agent for Lenders, JPMorgan Chase Bank, N.A., individually as a
Lender and as a Documentation Agent for Lenders, Agent and Lenders party thereto
("Loan Agreement").  Capitalized terms used in this Certificate,
unless otherwise defined herein, shall have the meanings ascribed to them in the
Loan Agreement.

     

    [1.
Based upon my review of the balance sheets and statements of income of Wabash
and its Subsidiaries for the [__________] period ending _______________, ____,
copies of which are attached hereto, I hereby certify that:

     

    (a)       EBITDA
as of the last day of the period is $__________;

     

    (b)       Capital
Expenditures during the period total $__________ in the
aggregate[.][;]

     

    [or]

     

    the
Fixed Charge Coverage Ratio as of the last day of the period is
_____:1.0.]

     

    [1/2].    No
Default exists on the date hereof, other than:
____________________________________ [if none, so
state]; and

    
      
         

      

      
        Exhibit
8.1.3 – Page 1

        
          

        

      

      
         

      

    

     

    [2/3].    No
Event of Default exists on the date hereof, other than
______________________________ [if none, so
state].

     

    Very
truly yours,

     

    _______________________________

    [Chief Financial
Officer/Treasurer/Assistant Treasurer]

    
      
         

      

      
        Exhibit
8.1.3 – Page 2

        
          

        

      

      
         

      

    

     

    EXHIBIT
8.3

     

    FINANCIAL
COVENANTS

     

    DEFINITIONS

     

    EBITDA
– with respect to any period, the sum of net earnings (or loss) before Interest
Expense, income taxes, depreciation, amortization and other non-cash charges
(including, but not limited to (i) gains and losses from currency
fluctuations, (ii) impairment charges relating to fixed assets or
intangibles, (iii) expenses relating to stock options, restricted stock
grants and stock derivatives issued to employees and directors of Wabash and its
Subsidiaries for such period, (iv) expenses relating to the transactions
contemplated by Consent and Amendment No. 1 to Third Amended and Restated Loan
and Security Agreement dated May 19, 2010 by and among Borrowers, Agent and the
parties identified as Lenders on the signature pages thereto (as amended,
supplemented or otherwise modified from time to time) and (v) losses with
respect to the Warrant described in clause (iii) of the definition of Permitted
Investment Documents, but excluding any extraordinary gains for such period),
all as determined for Wabash and its Subsidiaries on a Consolidated basis and in
accordance with GAAP.

     

    Fixed
Charge Coverage Ratio – with respect to any period, the ratio of
(i) EBITDA for such period minus
the sum of (a) any provision for (plus any benefit from) income taxes
included in the determination of net earnings (or loss) for such period plus
(b) non-financed Capital Expenditures during such period to (ii) Fixed
Charges for such period, all as determined for Wabash and its Subsidiaries on a
Consolidated basis and in accordance with GAAP.

     

    Fixed
Charges – with respect to any period, the sum
of:  (i) scheduled principal payments required to be made during
such period in respect to Indebtedness for Money Borrowed (including the
principal portion of Capitalized Lease Obligations), plus (ii) Interest
Expense for such period, plus (iii) scheduled reductions in the Maximum Fixed
Asset Amount pursuant to the definition thereof, all as determined for Wabash
and its Subsidiaries on a Consolidated basis and in accordance with
GAAP.

     

    Interest
Expense - with respect to any period, cash interest expense paid or
accrued for such period, including without limitation the interest portion of
Capitalized Lease Obligations, plus the Letter of Credit and LC Guaranty fees
owing for such period, all as determined for Wabash and its Subsidiaries on a
Consolidated basis and in accordance with GAAP.

    
      
         

      

      
        Exhibit 8.3 – Page 1

        
          

        

      

      
         

      

    

     

    COVENANTS

     

    If
Availability is less than $15,000,000 at any time before the earlier of
(a) August 14, 2011 or (b) the date that monthly financial statements
are delivered pursuant to Section 8.1.3(ii) for the month ending June 30, 2011,
then:

     

    Minimum
EBITDA.  Borrowers
shall not permit EBITDA for any period set forth below to be less than the
applicable amount set forth below for such period:

     

    
      
        
          
            	
                    Computation Period

                  	 	
                    Minimum EBITDA

                  	 
	 
      	 	 	 
	
                    April
      1, 2010 through April 30, 2010

                  	 	$	-2,000,000	 
	 
      	 	 	 	 
	
                    April
      1, 2010 through May 31, 2010

                  	 	$	-3,000,000	 
	 
      	 	 	 	 
	
                    April
      1, 2010 through June 30, 2010

                  	 	$	-3,000,000	 
	 
      	 	 	 	 
	
                    April
      1, 2010 through July 31, 2010

                  	 	$	-3,500,000	 
	 
      	 	 	 	 
	
                    April
      1, 2010 through August 31, 2010

                  	 	$	-3,000,000	 
	 
      	 	 	 	 
	
                    April
      1, 2010 through September 30, 2010

                  	 	$	-2,500,000	 
	 
      	 	 	 	 
	
                    April
      1, 2010 through October 31, 2010

                  	 	$	-2,000,000	 
	 
      	 	 	 	 
	
                    April
      1, 2010 through November 30, 2010

                  	 	$	-1,500,000	 
	 
      	 	 	 	 
	
                    April
      1, 2010 through December 31, 2010

                  	 	$	-1,000,000	 
	 
      	 	 	 	 
	
                    April
      1, 2010 through January 31, 2011

                  	 	$	-500,000	 
	 
      	 	 	 	 
	
                    April
      1, 2010 through February 28, 2011

                  	 	$	0.00	 
	 
      	 	 	 	 
	
                    April
      1, 2010 through March 31, 2011

                  	 	$	500,000	 
	 
      	 	 	 	 
	
                    Twelve
      month period ending April 30, 2011

                  	 	$	1,500,000	 
	 
      	 	 	 	 
	
                    Twelve
      month period ending May 31, 2011 and each twelve month period thereafter
      ending on the final day of each calendar month

                  	 	$	2,500,000	 

          

        

      

    

    
      
         

      

      
        Exhibit 8.3 – Page 2

        
          

        

      

      
         

      

    

     

    Maximum
Capital Expenditures.  Borrowers
shall not permit the aggregate amount of all Capital Expenditures of Wabash and
its Subsidiaries for any period set forth below to exceed the applicable amount
set forth below for such period:

     

    
      
        
          
            
              	
                      Computation Period

                    	 	
                      Maximum Capital

                      Expenditures

                    	 
	 
      	 	 	 
	
                      April
      1, 2010 through April 30, 2010

                    	 	$	1,000,000	 
	 
      	 	 	 	 
	
                      April
      1, 2010 through May 31, 2010

                    	 	$	1,250,000	 
	 
      	 	 	 	 
	
                      April
      1, 2010 through June 30, 2010

                    	 	$	1,500,000	 
	 
      	 	 	 	 
	
                      April
      1, 2010 through July 31, 2010

                    	 	$	1,750,000	 
	 
      	 	 	 	 
	
                      April
      1, 2010 through August 31, 2010

                    	 	$	2,000,000	 
	 
      	 	 	 	 
	
                      April
      1, 2010 through September 30, 2010

                    	 	$	2,250,000	 
	 
      	 	 	 	 
	
                      April
      1, 2010 through October 31, 2010

                    	 	$	2,500,000	 
	 
      	 	 	 	 
	
                      April
      1, 2010 through November 30, 2010

                    	 	$	2,750,000	 
	 
      	 	 	 	 
	
                      April
      1, 2010 through December 31, 2010

                    	 	$	3,000,000	 
	 
      	 	 	 	 
	
                      April
      1, 2010 through January 31, 2011

                    	 	$	3,300,000	 
	 
      	 	 	 	 
	
                      April
      1, 2010 through February 28, 2011

                    	 	$	3,500,000	 
	 
      	 	 	 	 
	
                      April
      1, 2010 through March 31, 2011

                    	 	$	3,800,000	 
	 
      	 	 	 	 
	
                      12
      month period ending April 30, 2011

                    	 	$	4,000,000	 
	 
      	 	 	 	 
	
                      12
      month period ending May 31, 2011 and each twelve month period thereafter
      ending on the last day of each calendar month

                    	 	$	4,000,000	 

            

          

        

      

    

     

    If
Availability is less than $20,000,000, on or after the earlier of (i) August 14,
2011 or (ii) the date that monthly financial statements are delivered pursuant
to Section 8.1.3(ii) for the month ending June 30, 2011, then:

     

    Fixed
Charge Coverage Ratio.  Borrowers shall not permit the Fixed
Charge Coverage Ratio for the 12 month period ending on the last day of the
calendar month that ended most recently prior to such time, to be less than 1.10
to 1.0.

    
      
         

      

      
        Exhibit 8.3 – Page 3

        
          

        

      

      
         

      

    

    CONSENT
AND REAFFIRMATION

     

    Each
of the undersigned (each a "Loan Guarantor"), hereby (i) acknowledges
receipt of a copy of the foregoing Consent and Amendment No. 1 to Third Amended
and Restated Loan and Security Agreement (the "Amendment"); (ii) consents
to each Borrower's execution and delivery of the Amendment; (iii) agrees to
be bound by the Amendment (including without limitation Section 6 thereof); and
(iv) reaffirms that the Loan Documents to which it is a party (and its
obligations thereunder) shall continue to remain in full force and
effect.  Although each Loan Guarantor has been informed of the matters
set forth herein and have acknowledged and agreed to same, each Loan Guarantor
understands that Agent and Lenders have no obligation to inform any Loan
Guarantor of such matters in the future or to seek any Loan Guarantor's
acknowledgment or agreement to future amendments, waivers or consents, and
nothing herein shall create such a duty.

     

    This
Consent and Reaffirmation shall be a contract made under and governed by the
laws of the State of Illinois, without regard to conflict of laws principles
that would require the application of laws other than those of the State of
Illinois.

     

    IN
WITNESS WHEREOF, each Loan Guarantor has executed this Consent and Reaffirmation
on and as of the date of the Amendment.

     

    
      
        
          
            	
                    CONTINENTAL
      TRANSIT CORPORATION, as a

                  
	
                    Loan
      Guarantor

                  
	 
      
	
                    By:

                  	
                    /s/ Mark J.
      Weber

                  
	
                    Name:  

                  	
                    Mark
      J. Weber

                  
	
                    Title:

                  	
                    Treasurer

                  
	 
      	 
      
	
                    WABASH
      NATIONAL SERVICES, L.P., as a Loan

                  
	
                    Guarantor

                  
	 
      
	
                    By:  Wabash
      National Trailer Centers, Inc.,

                  
	
                     its
      General Partner

                  
	 
      	 
      
	
                    By:

                  	
                    /s/ Mark J.
      Weber

                  
	
                    Name:

                  	
                    Mark
      J. Weber

                  
	
                    Title:

                  	
                    Vice
      President, Treasurer,
Controller

                  

          

        

      

    

     

    
      
        Consent
and Reaffirmation to Consent and Amendment No. 1 to Third Amended and Restated
Loan and Security Agreement

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                	
                        WABASH
      NATIONAL TRAILER CENTERS,

                      
	
                        INC.,
      as a Loan Guarantor

                      
	 
      
	
                        By:

                      	
                        /s/ Mark J.
      Weber

                      
	
                        Name:  

                      	
                        Mark
      J. Weber

                      
	
                        Title:

                      	
                        Vice
      President, Treasurer, Controller

                      
	 
      
	
                        WABASH
      FINANCING LLC, as a Loan Guarantor

                      
	 
      
	
                        By:

                      	
                        /s/ Mark J.
      Weber

                      
	
                        Name:

                      	
                        Mark
      J. Weber

                      
	
                        Title:

                      	
                        Treasurer,
      Manager

                      
	 
      
	
                        NATIONAL
      TRAILER FUNDING, L.L.C., as a

                      
	
                        Loan
      Guarantor

                      
	 
      	 
      
	
                        By:  Wabash
      National Trailer Centers, Inc.,

                      
	
                         its
      Sole Member

                      
	 
      	 
      
	
                        By:

                      	
                        /s/ Mark J.
      Weber

                      
	
                        Name:

                      	
                        Mark
      J. Weber

                      
	
                        Title:

                      	
                        Vice
      President, Treasurer, Controller

                      
	 
      	 
      
	
                        WABASH
      NATIONAL MANUFACTURING, L.P.

                      
	
                        (f/k/a Wabash
      National Lease Receivables, L.P.),
  as

                      
	
                        a
      Loan Guarantor

                      
	 
      
	
                        By:  Wabash
      National Corporation,

                      
	
                         its
      General Partner

                      
	 
      	 
      
	
                        By:

                      	
                        /s/ Mark J.
      Weber

                      
	
                        Name:

                      	
                        Mark
      J. Weber

                      
	
                        Title:

                      	
                        Senior
      Vice President - CFO, Treasurer

                      
	 
      	 
      
	
                        CLOUD OAK
      FLOORING COMPANY, INC., as a

                      
	
                        Loan
      Guarantor

                      
	 
      
	
                        By:

                      	
                        /s/ Mark J.
      Weber

                      
	
                        Name:

                      	
                        Mark
      J. Weber

                      
	
                        Title:

                      	
                        Vice
      President,
Treasurer

                      

              

            

          

        

      

    

     

    
      
        Consent
and Reaffirmation to Consent and Amendment No. 1 to Third Amended and Restated
Loan and Security AgreementLIANDI
CLEAN TECHNOLOGY INC.

     

    INDEPENDENT
DIRECTOR AGREEMENT

     

    This
INDEPENDENT DIRECTOR AGREEMENT (the “Agreement”) is made and entered into as of
this 29th day of April, 2010, effective as of May 17, 2010 (the “Effective
Date”), by and between LianDi Clean Technology Inc., a Nevada corporation (the
“Company”), and Hongjie Chen, a citizen of China, with a permanent residence at
16/F Zhongshen International Building, Hongling Rd., Shenzhen, People’s Republic
of China (the “Independent Director”).

     

    WHEREAS,
the Company desires to engage the Independent Director, and the Independent
Director desires to serve, as a non-employee director of the Company, subject to
the terms and conditions contained in this Agreement.

     

    NOW,
THEREFORE, in consideration of the mutual promises and covenants contained
herein, the receipt of which is hereby acknowledged, the Company and the
Independent Director, intending to be legally bound, hereby agree as
follows:

     

    1. 
         DEFINITIONS.

     

    (a)         
 “Corporate Status” describes the capacity of the Independent Director with
respect to the Company and the services performed by the Independent Director in
that capacity.

     

    (b) 
         “Entity” shall mean any corporation,
partnership, limited liability company, joint venture, trust, foundation,
association, organization or other legal entity.

     

    (c) 
         “Proceeding” shall mean any threatened,
pending or completed claim, action, suit, arbitration, alternate dispute
resolution process, investigation, administrative hearing, appeal, or any other
proceeding, whether civil, criminal, administrative or investigative, whether
formal or informal, including a proceeding initiated by the Independent Director
pursuant to Section 12 of this Agreement to enforce the Independent Director’s
rights hereunder.

     

    (d) 
         “Expenses” shall mean all reasonable fees,
costs and expenses, approved by the Company in advance and reasonably incurred
in connection with any Proceeding, including, without limitation, attorneys’
fees, disbursements and retainers, fees and disbursements of expert witnesses,
private investigators, professional advisors (including, without limitation,
accountants and investment bankers), court costs, transcript costs, fees of
experts, travel expenses, duplicating, printing and binding costs, telephone and
fax transmission charges, postage, delivery services, secretarial services, and
other disbursements and expenses.

     

    (e) 
         “Liabilities” shall mean judgments, damages,
liabilities, losses, penalties, excise taxes, fines and amounts paid in
settlement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (f) 
         “Parent” shall mean any corporation or other
entity (other than the Company) in any unbroken chain of corporations or other
entities ending with the Company, if each of the corporations or entities, other
than the Company, owns stock or other interests possessing 50% or more of the
economic interest or the total combined voting power of all classes of stock or
other interests in one of the other corporations or entities in the
chain.

     

    (g) 
         “Subsidiary” shall mean any corporation or
other entity (other than the Company) in any unbroken chain of corporations or
other entities beginning with the Company, if each of the corporations or
entities, other than the last corporation or entity in the unbroken chain, owns
stock or other interests possessing 50% or more of the economic interest or the
total combined voting power of all classes of stock or other interests in one of
the other corporations or entities in the chain.

     

    2. 
         SERVICES OF INDEPENDENT DIRECTOR. While this
Agreement is in effect, the Independent Director shall perform duties as an
independent director and/or a member of the committees of the Board, be
compensated for such and be reimbursed expenses in accordance with the Schedule
A attached to this Agreement, subject to the following.

     

    (a) 
         The Independent Director will perform services
as is consistent with Independent Director’s position with the Company, as
required and authorized by the By-Laws and Articles of Incorporation of the
Company, and in accordance with high professional and ethical standards and all
applicable laws and rules and regulations pertaining to the Independent
Director’s performance hereunder, including without limitation, laws, rules and
regulations relating to a public company.

     

    (b) 
         The Independent Director is solely responsible
for taxes arising out of any compensation paid by the Company to the Independent
Director under this Agreement, and the Independent Director understands that
he/she will be issued a U.S. Treasury form 1099 for any compensation paid to
him/her by the Company.  The Independent Director acknowledges and agrees
that because he is not an employee of the Company the Company will not withhold
any amounts for taxes from any of his payments under the Agreement.

     

    (c) 
         The Company may offset any and all monies
payable to the Independent Director to the extent of any monies owing to the
Company from the Independent Director.

     

    (d) 
         The rules and regulations of the Company
notified to the Independent Director, from time to time, apply to the
Independent Director. Such rules and regulations are subject to change by the
Company in its sole discretion. Notwithstanding the foregoing, in the event of
any conflict or inconsistency between the terms and conditions of this Agreement
and rules and regulations of the Company, the terms of this Agreement
control.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    3. 
         REQUIREMENTS OF INDEPENDENT DIRECTOR. During
the term of the Independent Director’s services to the Company hereunder,
Independent Director shall observe all applicable laws and regulations relating
to independent directors of a public company as promulgated from to time, and
shall not: (1) be an employee of the Company or any Parent or Subsidiary; (2)
accept, directly or indirectly, any consulting, advisory, or other compensatory
fee from the Company other than as a director and/or a member of a committee of
the Board; (3) be an affiliated person of the Company or any Parent or
Subsidiary, as the term “affiliate” is defined in 17 CFR 240.10A-3(e)(1), other
than in his capacity as a director and/or a member of a committee of the Board;
(4) possess an interest in any transaction with the Company or any Parent or
Subsidiary, for which disclosure would be required pursuant to 17 CFR
229.404(a), other than in his capacity as a director and/or a member of a
committee of the Board committees; (5) be engaged in a business relationship
with the Company or any Parent or Subsidiary, for which disclosure would be
required pursuant to 17 CFR 229.404(a), except that the required beneficial
interest therein shall be modified to be 5% hereby.

     

    4. 
         REPORT OBLIGATION. While this Agreement is in
effect, the Independent Director shall immediately report to the Company in the
event: (1) the Independent Director knows or has reason to know or should have
known that any of the requirements specified in Section 3 hereof is not
satisfied or is not going to be satisfied; and (2) the Independent Director
simultaneously serves on an audit committee of any other public
company.

     

    5. 
         TERM AND TERMINATION. The term of this
Agreement and the Independent Director’s services hereunder shall be for one (1)
year from the Effective Date, unless terminated as provided for in this Section
5. This Agreement and the Independent Director’s services hereunder shall
terminate upon the earlier of the following:

     

    (a) 
         Removal of the Independent Director as a
director of the Company, upon proper Board or stockholder action in accordance
with the By-Laws and Articles of Incorporation of the Company and applicable
law;

     

    (b) 
         Resignation of the Independent Director as a
director of the Company upon written notice to the Board of Directors of the
Company; or

     

    (c) 
         Termination of this Agreement by the Company,
in the event any of the requirements specified in Section 3 hereof is not
satisfied, as determined by the Company in its sole discretion.

     

    6. 
         LIMITATION OF LIABILITY. In no event shall the
Independent Director be individually liable to the Company or its shareholders
for any damages for breach of fiduciary duty as an independent director of the
Company, unless the Independent Director’s act or failure to act involves
intentional misconduct, fraud or a knowing violation of law.

     

    7. 
         AGREEMENT OF INDEMNITY. The Company agrees to
indemnify the Independent Director as follows:

     

    (a) 
         Subject to the exceptions contained in Section
8(a) below, if the Independent Director was or is a party or is threatened to be
made a party to any Proceeding (other than an action by or in the right of the
Company) by reason of the Independent Director’s Corporate Status, the
Independent Director shall be indemnified by the Company against all Expenses
and Liabilities incurred or paid by the Independent Director in connection with
such Proceeding (referred to herein as “INDEMNIFIABLE EXPENSES” and
“INDEMNIFIABLE LIABILITIES,” respectively, and collectively as “INDEMNIFIABLE
AMOUNTS”).

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    (b) 
         Subject to the exceptions contained in Section
8(b) below, if the Independent Director was or is a party or is threatened to be
made a party to any Proceeding by or in the right of the Company, to procure a
judgment in its favor by reason of the Independent Director’s Corporate Status,
the Independent Director shall be indemnified by the Company against all
Indemnifiable Expenses.

     

    (c) 
         For purposes of this Agreement, the
Independent Director shall be deemed to have acted in good faith in conducting
the Company’s affairs as an independent director of the Company and/or a member
of a committee of the Board of the Company, if the Independent Director: (i)
exercised or used the same degree of diligence, care, and skill as an ordinarily
prudent man would have exercised or used under the circumstances in the conduct
of his own affairs; or (ii) took, or omitted to take, an action in reliance upon
advise of counsels or other professional advisors for the Company, or upon
statements made or information furnished by other directors, officers or
employees of the Company, or upon a financial statement of the Company provided
by a person in charge of its accounts or certified by a public accountant or a
firm of public accountants, which the Independent Director had reasonable
grounds to believe to be true.

     

    8. 
         EXCEPTIONS TO INDEMNIFICATION. Director shall
be entitled to indemnification under Sections 7(a) and 7(b) above in all
circumstances other than the following:

     

    (a) 
         If indemnification is requested under Section
7(a) and it has been adjudicated finally by a court or arbitral body of
competent jurisdiction that, in connection with the subject of the Proceeding
out of which the claim for indemnification has arisen, (i) the Independent
Director failed to act in good faith and in a manner the Independent Director
reasonably believed to be in or not opposed to the best interests of the
Company, (ii) the Independent Director had reasonable cause to believe that the
Independent Director’s conduct was unlawful, or (iii) the Independent Director’s
conduct constituted willful misconduct, fraud or knowing violation of law, then
the Independent Director shall not be entitled to payment of Indemnifiable
Amounts hereunder.

     

    (b) 
         If indemnification is requested under Section
7(b) and

     

    (i) 
         it has been adjudicated finally by a court or
arbitral body of competent jurisdiction that, in connection with the subject of
the Proceeding out of which the claim for indemnification has arisen, the
Independent Director failed to act in good faith and in a manner the Independent
Director reasonably believed to be in or not opposed to the best interests of
the Company, including without limitation, the breach of Section 4 hereof by the
Independent Director, the Independent Director shall not be entitled to payment
of Indemnifiable Expenses hereunder; or

     

    (ii) 
         it has been adjudicated finally by a court or
arbitral body of competent jurisdiction that the Independent Director is liable
to the Company with respect to any claim, issue or matter involved in the
Proceeding out of which the claim for indemnification has arisen, including,
without limitation, a claim that the Independent Director received an improper
benefit or improperly took advantage of a corporate opportunity, the Independent
Director shall not be entitled to payment of Indemnifiable Expenses hereunder
with respect to such claim, issue or matter.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    9. 
         WHOLLY OR PARTLY SUCCESSFUL. Notwithstanding
any other provision of this Agreement, and without limiting any such provision,
to the extent that the Independent Director is, by reason of the Independent
Director’s Corporate Status, a party to and is successful, on the merits or
otherwise, in any Proceeding, the Independent Director shall be indemnified in
connection therewith. If the Independent Director is not wholly successful in
such Proceeding but is successful, on the merits or otherwise, as to one or more
but less than all claims, issues or matters in such Proceeding, the Company
shall indemnify the Independent Director against those Expenses reasonably
incurred by the Independent Director or on the Independent Director’s behalf in
connection with each successfully resolved claim, issue or matter. For purposes
of this section, the termination of any claim, issue or matter in such a
Proceeding by dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter.

     

    10. 
         ADVANCES AND INTERIM EXPENSES. The Company may
pay to the Independent Director all Indemnifiable Expenses incurred by the
Independent Director in connection with any Proceeding, including a Proceeding
by or in the right of the Company, in advance of the final disposition of such
Proceeding, if the Independent Director furnishes the Company with a written
undertaking, to the satisfaction of the Company, to repay the amount of such
Indemnifiable Expenses advanced to the Independent Director in the event it is
finally determined by a court or arbitral body of competent jurisdiction that
the Independent Director is not entitled under this Agreement to indemnification
with respect to such Indemnifiable Expenses.

     

    11. 
         PROCEDURE FOR PAYMENT OF INDEMNIFIABLE
AMOUNTS. The Independent Director shall submit to the Company a written request
specifying the Indemnifiable Amounts, for which the Independent Director seeks
payment under Section 7 hereof and the Proceeding of which has been previously
notified to the Company and approved by the Company for indemnification
hereunder. At the request of the Company, the Independent Director shall furnish
such documentation and information as are reasonably available to the
Independent Director and necessary to establish that the Independent Director is
entitled to indemnification hereunder. The Company shall pay such Indeminfiable
Amounts within thirty (30) days of receipt of all required
documents.

     

    12. 
         REMEDIES OF INDEPENDENT DIRECTOR.

     

    (a) 
         RIGHT TO PETITION COURT. In the event that the
Independent Director makes a request for payment of Indemnifiable Amounts under
Sections 7, 9-11 above, and the Company fails to make such payment or
advancement in a timely manner pursuant to the terms of this Agreement, the
Independent Director may petition the appropriate judicial authority to enforce
the Company’s obligations under this Agreement.

     

    (b) 
         BURDEN OF PROOF. In any judicial proceeding
brought under Section 12 (a) above, the Company shall have the burden of proving
that the Independent Director is not entitled to payment of Indemnifiable
Amounts hereunder.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    (c) 
         EXPENSES. The Company agrees to reimburse the
Independent Director in full for any Expenses incurred by the Independent
Director in connection with investigating, preparing for, litigating, defending
or settling any action brought by the Independent Director under Section 12 (a)
above, or in connection with any claim or counterclaim brought by the Company in
connection therewith.

     

    (d) 
         VALIDITY OF AGREEMENT. The Company shall be
precluded from asserting in any Proceeding, including, without limitation, an
action under Section 12 (a) above, that the provisions of this Agreement are not
valid, binding and enforceable or that there is insufficient consideration for
this Agreement and shall stipulate in court that the Company is bound by all the
provisions of this Agreement.

     

    (e) 
         FAILURE TO ACT NOT A DEFENSE. The failure of
the Company (including its Board of Directors or any committee thereof,
independent legal counsel, or stockholders) to make a determination concerning
the permissibility of the payment of Indemnifiable Amounts or the advancement of
Indemnifiable Expenses under this Agreement shall not be a defense in any action
brought under Section 12 (a) above.

     

    13. 
         PROCEEDINGS AGAINST COMPANY. Except as
otherwise provided in this Agreement, the Independent Director shall not be
entitled to payment of Indemnifiable Amounts or advancement of Indemnifiable
Expenses with respect to any Proceeding brought by the Independent Director
against the Company, any Entity which it controls, any director or officer
thereof, or any third party, unless the Company has consented to the initiation
of such Proceeding. This section shall not apply to counterclaims or affirmative
defenses asserted by the Independent Director in an action brought against the
Independent Director.

     

    14. 
         INSURANCE. The Company may, at its discretion,
obtain and maintain a policy or policies of director and officer liability
insurance, in an amount not less than $10,000,000, of which the Independent
Director will be named as an insured, providing the Independent Director with
coverage for Indemnifiable Amounts and/or Indemnifiable Expenses in accordance
with said insurance policy or policies (“D&O INSURANCE”); provided
that:

     

    (a) 
         The Independent Director agrees that, while
the Company has valid and effective D&O Insurance, and except as provided in
(c) of this section, Sections 7-13 of this Agreement shall not apply, and the
Company’s indemnification obligation to the Independent Director under this
Agreement shall be deemed fulfilled by virtue of purchasing and maintaining such
insurance policy or policies, in accordance with the terms and conditions
thereof and subject to exclusions stated thereon. The Independent Director
agrees that the Company shall have no obligation to challenge the decisions made
by the insurance carrier(s) (“INSURANCE CARRIER”) relating to any claims made
under such insurance policy or policies;

     

    (b) 
         The Independent Director agrees that the
Company’s indemnification obligation to the Independent Director under (a) of
this section shall be deemed discharged and terminated, in the event the
Insurance Carrier refused payment for any Proceedings against the Independent
Director due to the acts or omissions of the Independent Director;

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    (c) 
         While the D&O Insurance is valid and
effective, the Company agrees that it shall indemnify the Independent Director
for the Indemnifiable Amounts and Indemnifiable Expenses, to the extent that any
Proceedings are coverable by D&O Insurance, but in excess of the policy
amount, in accordance with Sections 7-13 of this Agreement; and

     

    (d) 
         While the D&O Insurance is valid and
effective, this Section 14 states the entire and exclusive remedy of the
Independent Director with respect to the indemnification obligation of the
Company to the Independent Director under this Agreement.

     

    15. 
         SUBROGATION. In the event of any payment of
Indemnifiable Amounts under this Agreement or the D&O Insurance, the Company
or its Insurance Carrier, as the case may be, shall be subrogated to the extent
of such payment to all of the rights of contribution or recovery of the
Independent Director against other persons, and the Independent Director shall
take, at the request of the Company, all reasonable action necessary to secure
such rights, including the execution of such documents as are necessary to
enable the Company to bring suit to enforce such rights.

     

    16. 
         AUTHORITY. Each party has all necessary power
and authority to enter into, and be bound by the terms of, this Agreement, and
the execution, delivery and performance of the undertakings contemplated by this
Agreement have been duly authorized by each party hereto:

     

    17. 
         SUCCESSORS AND ASSIGNMENT. This Agreement
shall (a) be binding upon and inure to the benefit of all successors and assigns
of the Company (including any transferee of all or a substantial portion of the
business, stock and/or assets of the Company and any direct or indirect
successor by merger or consolidation or otherwise by operation of law), and (b)
be binding on and shall inure to the benefit of the heirs, personal
representatives, executors and administrators of the Independent Director. The
Independent Director has no power to assign this Agreement or any rights and
obligations hereunder.

     

    18. 
         CHANGE IN LAW. To the extent that a change in
applicable law (whether by statute or judicial decision) shall mandate broader
or narrower indemnification than is provided hereunder, the Independent Director
shall be subject to such broader or narrower indemnification and this Agreement
shall be deemed to be amended to such extent.

     

    19. 
         SEVERABILITY. Whenever possible, each
provision of this Agreement shall be interpreted in such a manner as to be
effective and valid under applicable law, but if any provision of this
Agreement, or any clause thereof, shall be determined by a court of competent
jurisdiction to be illegal, invalid or unenforceable, in whole or in part, such
provision or clause shall be limited or modified in its application to the
minimum extent necessary to make such provision or clause valid, legal and
enforceable, and the remaining provisions and clauses of this Agreement shall
remain fully enforceable and binding on the parties.

     

    20. 
         MODIFICATIONS AND WAIVER. Except as provided
in Section 18 hereof with respect to changes in applicable law which broaden or
narrow the right of the Independent Director to be indemnified by the Company,
no supplement, modification or amendment of this Agreement shall be binding
unless executed in writing by each of the parties hereto. No delay in exercise
or non-exercise by the Company of any right under this Agreement shall operate
as a current or future waiver by it as to its same or different rights under
this Agreement or otherwise.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    21. 
         NOTICES. All notices, requests, demands and
other communications hereunder shall be in writing and shall be deemed to have
been duly given (a) when delivered by hand, (b) when transmitted by facsimile
and receipt is acknowledged, or (c) if mailed by certified or registered mail
with postage prepaid, on the third business day after the date en which it is so
mailed:

     

      If
to Independent Director, to: Hongjie Chen, 16/F
Zhongshen International Building, Hongling Rd, Shenzhen, People’s Republic of
China.

     

      If
to the Company, to: Jianzhong Zuo, CEO, LianDi Clean Technology Inc., 4th Floor,
Tower B. Wanliuxingui Building, No. 28 Wanquanzhuang Road, Haidian District,
Beijing, China 100089, or to such other address as may have been furnished in
the same manner by any party to the others.

     

    22. 
         GOVERNING LAW. This Agreement shall be
governed by and construed and enforced under the laws of the State of New
York.

     

    23. 
         CONSENT TO JURISDICTION. The parties hereby
consent to the jurisdiction of the courts having jurisdiction over matters
arising in New York County, New York for any proceeding arising out of or
relating to this Agreement. The parties agree that in any such proceeding, each
party shall waive, if applicable, inconvenience of forum and right to a
jury.

     

    24. 
         AGREEMENT GOVERNS. This Agreement is to be
deemed consistent wherever possible with relevant provisions of the By-Laws and
Articles of Incorporation of the Company; however, in the event of a conflict
between this Agreement and such provisions, the provisions of this Agreement
shall control.

     

    25. 
         INDEPENDENT CONTRACTOR. The parties
understand, acknowledge and agree that the Independent Director’s relationship
with the Company is that of an independent contractor and nothing in this
Agreement is intended to or should be construed to create a relationship other
than that of independent contractor. Nothing in this Agreement shall be
construed as a contract of employment/engagement between the Independent
Director and the Company or as a commitment on the part of the Company to retain
the Independent Director in any capacity, for any period of time or under any
specific terms or conditions, or to continue the Independent Director’s service
to the Company beyond any period.

     

    26. 
         ARBITRATION. Any dispute, controversy or claim
arising out of or relating to this Agreement or the breach thereof, shall be
settled by arbitration, before one arbitrator in accordance with the rules of
the American Arbitration Association then in effect and judgment upon the award
rendered by the arbitrator may be entered in any court having jurisdiction. The
arbitrator will be selected, by the parties, from a panel of attorney
arbitrators. The parties agree that any arbitration shall be held in New York,
New York. The language of the arbitration shall be in English. The arbitrator
will have no authority to make any relief, finding or award that does not
conform to the terms and conditions of this Agreement. Each party shall bear its
own attorneys’ or expert fees and any and all other party specific costs. Either
party, before or during any arbitration, may apply to a court having
jurisdiction for a restraining order or injunction where such relief is
necessary to protect its interests. Prior to initiation of arbitration, the
aggrieved party will give the other party written notice, in accordance with
this Agreement, describing the claim as to which it intends to initiate
arbitration.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    27. 
         ENTIRE AGREEMENT. This Agreement constitutes
the entire agreement between the Company and the Independent Director with
respect to the subject matter hereof, and supersedes all prior understandings
and agreements with respect to such subject matter.

     

    IN
WITNESS WHEREOF, the parties hereto have executed this Independent Director
Agreement as of the day and year first above written.

     

    
      
        
          
            
              
                	
                        AGREED

                      	 
      	
                        AGREED

                      	 
	 
      	 
      	 
      	 
	
                        LianDi
      Clean Technology Inc.

                      	 
      	
                        Independent
      Director

                      	 
	 
      	 
      	 
      	 
	/s/ Jianzhong Zuo	 
      	
                        /s/ Hongjie Chen

                      	 
	
                        Name: 
      Jianzhong Zuo

                      	 
      	
                        Name:
      Hongjie Chen

                      	 
	
                        Title: 
       CEO

                      	 
      	 
      	 

              

            

          

        

      

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
A

     

    I 
         POSITION:

     

    INDEPENDENT
DIRECTOR.

     

    II.         COMPENSATION:

    

    FEES. For
all services rendered by the Independent Director pursuant to this Agreement,
both during and outside of normal working hours, including but not limited to,
attending all required meetings of the Board or applicable committees thereof,
executive sessions of the independent directors, reviewing filing reports and
other corporate documents as requested by the Company, providing comments and
opinions as to business matters as requested by the Company, the Company agrees
to pay to the Independent Director a fee in cash of $300 per month during the
Term (the “Base Fee”).  The Base Fee shall be paid in cash to the
Independent Director on a monthly basis in equal installments on the last day of
each calendar month.

     

    STOCK.
The Independent Director shall be granted (i) on the
date of execution of this Agreement, a 5-year
option to purchase up to 5,000 shares of common stock of the Company at the fair
market value of the common stock on the
date of the grant, such shares
vesting in equal quarterly installments for the one year period following the
date of grant, and (ii) on the one-year anniversary of the execution of this
Agreement, an additional 5-year
option to purchase up to 5,000 shares of common stock of the Company at the fair
market value of the common stock on the
date of the grant, such shares vesting
in equal quarterly
installments for the
one year period following the date of grant.  Any
such award shall
be in accordance with the equity incentive plans as may be adopted by the
Company, from time to time. The Independent Director’s rights in respect to any
grant shall be determined solely by the Compensation Committee of the Company
and are subject to execution by Independent Director of any applicable
agreements as established and requested by the Company pursuant to the equity
incentive plans.

     

    EXPENSES.
During the term of the Independent Director’s service as a director of the
Company, the Company shall promptly reimburse the Independent Director for all
expenses incurred by him/her in connection with attending (a) all meetings of
the Board or applicable committees thereof, (b) executive sessions of the
independent directors, and (c) stockholder meetings, as a director or a member
of any committee of the Board , provided that any such expenses over $1,000
shall be approved by the Company in writing in advance.  In addition, the
Independent Director shall rely on the Company to arrange all hotel
accommodations in connection with any such meetings the Independent Director
must attend. The amount of such expenses eligible for reimbursement by the
Company during a calendar year shall not affect such expenses eligible for
reimbursement by the Company in any other calendar year, and the reimbursement
of any such eligible expenses shall be made on or before the last day of the
calendar year next following the calendar year in which the expense was
incurred.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    NO OTHER
BENEFITS OR COMPENSATION. The Independent Director acknowledges and agrees that
he/she is not granted and is not entitled to any other benefits or compensation
from the Company for the services provided under this Agreement except expressly
provided for in this Schedule A.

     

    
      
        
          
            
              
                
                  	
                          AGREED

                        	 
      	
                          AGREED

                        	 
	 
      	 
      	 
      	 
	
                          LianDi
      Clean Technology Inc.

                        	 
      	
                          Independent
      Director

                        	 
	 
      	 
      	 
      	 
	
                          /s/ Jianzhong Zuo

                        	 
      	
                          /s/ Hongjie Chen

                        	 
	
                          Name:  Jianzhong
      Zuo

                        	 
      	
                          Name:  Hongjie
      Chen

                        	 
	
                          Title:   CEO

                        	 
      	 
      	 

                

              

            

          

        

      

    

     

    
      
        
        

      

      
        11

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