Document:

Exhibit 10.1

 

 

 

November 04, 2020

 

 

Psychemedics Corporation

125 Nagog Park, Ste
200

Acton, MA 01720

Attn: Neil Lerner

 

 

 

 

	Re:	 	Conditional Waiver

 

 

Dear Mr. Lerner

 

Reference
is made to that certain Master Loan and Security Agreement No. 26928-70000 dated as of March 19, 2014 (as amended, modified or
supplemented from time to time, the “Master Loan Agreement”) between Banc of America Leasing & Capital,
LLC (“BALC”) and Psychemedics Corporation (the “Company”). The Master Loan Agreements, collectively
with all exhibits, addenda, Equipment Notes, certificates, riders and other documents and instruments executed and delivered to
BALC in connection therewith, which evidence, secure, guaranty, or relate to the Master Loan Agreement, are collectively referred
to as the “Equipment Finance Documents.” Capitalized terms not otherwise defined herein shall have the meanings
ascribed them in the Equipment Finance Documents.

 

The
Master Loan Agreement includes (through an Addendum thereto) financial covenants applicable to the Company. As you know, the Company
was not in compliance with certain of the financial covenants set forth in the Master Loan Agreement. Specifically, the Company
was not in compliance with both the Funded Debt to EBITDA and the Fixed Charge Coverage Ratio applicable to the Company for the
fiscal period ended September 30, 2020 (the “Covenant Breach”). The Covenant Breach resulted in the occurrence
of an Event of Default under the Equipment Finance Documents (the “Specified Event of Default”). The Company
has asked that BALC waive the Specified Event of Default.

 

Subject to the
terms of this letter, BALC hereby agrees to waive the Specified Event of Default, for the period ending September 30, 2020
only (the “Waiver”); provided, however, that, as a condition to, and in consideration of,
BALC providing the Waiver, the Company shall execute and deliver to BALC the amendments to the Master Loan Agreement
delivered to the Company simultaneously herewith, which amendment revises the financial covenants set forth in the Master
Loan Agreement (the “Amendment”).

 

This
letter does not constitute, except as expressly provided herein, a consent to any action of the Company under the Equipment Finance
Documents or a waiver of any right, power or remedy of BALC under the Equipment Finance Documents, nor constitute a waiver of any
other provision of the Equipment Finance Documents. Except as expressly provided herein, BALC reserves all of its rights and remedies
available in respect of the Equipment Finance Documents and under applicable law. By signing below, the Company hereby acknowledges
and agrees that each and every term and condition of the Equipment Finance Documents is hereby ratified and confirmed and shall
remain in full force and effect, without waiver or modification, except as expressly provided herein, and that nothing contained
or implied herein shall be construed as a future consent or waiver of any other term or condition contained in the Equipment Finance
Documents.

 

This
letter and the waiver contained herein shall not apply to any of the Notes that BALC has assigned to a third party unless such
third party has approved or consented to the terms of this letter.

     

     

    

 

Please
sign below to signify your acknowledgment, acceptance and approval of the terms of this letter agreement and return this letter
agreement, together with an executed copy of the Amendment, to my attention no later than November 13, 2020. Failure to return
a countersigned copy of this letter and the executed Amendment on or before the date indicated above shall nullify the Waiver contained
herein and, under such circumstances, BALC may, in its sole and absolute discretion, choose to exercise its rights and remedies
under the terms of the Equipment Finance Documents and applicable law.

 

 

	 	Very truly yours,
	 	 
	 	BANC OF AMERICA LEASING & CAPITAL, LLC

	 	 	 
	 	 	 
	 	By:	/s/ Alison  Hook
	 	Name:	Alison R Hook
	 	Title:	Senior Vice President
	 	 	 

 

 

 

ACKNOWLEDGED, ACCEPTED AND AGREED TO THIS 5th
DAY OF November , 2020

 

 

	Psychemedics Corporation 

	 
	 	 	 
	 	 	 
	By:	 /s/  Neil Lerner	 
	Name:	 Neil Lerner	 
	Title:	 VP Finance	 
		 	 

  

 

 

     

     

    

 

	
        Bank
        of America

        Banc of America Leasing & Capital, LLC
	
         

        Amendment Number 001

        to Master Loan and Security Agreement No. 26928-70000

 

This
Amendment Number 001 (this “Amendment”) is made as of this 4th day of November, 2020, to Master Loan and Security
Agreement No. 26928-70000 dated as of March 19, 2014 (together with all addenda, amendments, notes, schedules, and riders thereto,
the “Agreement”), between Banc of America Leasing & Capital, LLC (“Lender”) and Psychemedics
Corporation (“Borrower”).

 

W I T N E S S E T H:

 

WHEREAS, Lender and the Borrower
are parties to the Agreement, which includes that certain Addendum to Master Loan and Security Agreement that adds certain financial
covenants to the Agreement (the “Addendum”); and

 

WHEREAS, Lender and Borrower
desire to amend certain provisions of the Agreement (and, in particular, provisions in the Addendum) as set forth in this Amendment.

 

NOW, THEREFORE, in consideration
of the mutual covenants and premises as hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

 

		1.	The Agreement is hereby amended by adding the following sentence to the end of Section 1.a. set forth in the Addendum:

 

“Notwithstanding anything to the contrary set
forth herein, compliance with the foregoing Funded Debt to EBITDA ratio shall be waived for the fiscal quarters ending December
31, 2020, March 31, 2021 and June, 2021.”

 

		2.	The Agreement is hereby amended by adding the following sentence to the end of Section 1.b. set forth in the Addendum:

 

“Notwithstanding anything to the contrary set
forth herein, compliance with the foregoing Fixed Charge Coverage Ratio shall be waived for the fiscal quarters ending December
31, 2020, March 31, 2021 and June, 2021.”

 

		3.	The Agreement is hereby amended by adding new Sections 1.c. and 1.d. to the Addendum as follows:

 

		“c.	Other Covenants: maintain (1) minimum cash balances of $1,500,000, measured as
of the end of each fiscal quarter, and (2) minimum quarterly EBITDA of (i) $1, for the fiscal quarter ending December 31, 2020
and (ii) $225,000, for the fiscal quarters ending March 31, 2021 and June 30, 2021. The covenants set forth in this subsection
c. shall be measured through the fiscal quarter ending June, 2021 only.

 

		d.	During the period commencing November 1, 2020 and continuing through June 30, 2021,
Borrower shall not pay dividends or remit similar payments to its shareholders or other equity holders, such payments to be resumed
when Borrower can satisfy the covenants set forth in a. and b. above on or about the fiscal quarter ending September 30, 2021.”

 

		4.	Except as amended hereby, the Agreement (and the Addendum) shall remain
in full force and effect and is in all respects hereby ratified and affirmed. To the extent that the provisions of this Amendment
conflict with the provisions of the Agreement, the provisions of this Amendment shall control. Capitalized terms not otherwise
defined herein shall have the meanings ascribed them in the Agreement (including the Addendum).

 

		5.	This Amendment shall apply to all Equipment Notes now existing (except any
Equipment Notes that Lender has assigned to a third party unless such third party has approved or consented to this Amendment)
or hereafter entered into under the Agreement.

 

 

IN WITNESS WHEREOF, the parties, each by its duly authorized
officer or agent, have duly executed and delivered this Amendment, which is intended to take effect as a sealed instrument, as
of the day and year first written above.

 

 

	Psychemedics Corporation (Borrower)

	 	Banc of America Leasing & Capital, LLC (Lender)

	 	 	 	 	 
	 	 	 	 	 
	By:	 /s/  Neil Lerner	 	By:	/s/ Alison  Hook
	Name:	 Neil Lerner	 	Name:	Alison R Hook
	Title:	 VP Finance	 	Title:	Senior Vice PresidentDocument

Exhibit 4.1

 FIRST SUPPLEMENTAL INDENTURE
FIRST SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of August 19, 2020, between HC2 Holdings, Inc., a Delaware corporation (the “Company”), and U.S. Bank National Association, as trustee under the Indenture referred to below (the “Trustee”).
W I T N E S S E T H
WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the “Indenture”), dated as of November 20, 2018 providing for the issuance of 7.5% Convertible Senior Notes due 2022 (the “Notes”);
WHEREAS, Section 14.01 of the Indenture provides that under certain circumstances the Company may execute and deliver to the Trustee a supplemental indenture to amend the Indenture without the consent of the Holders;
WHEREAS, Section 14.01(11) of the Indenture provides that the Company may enter into a supplemental indenture for the purpose of conforming the provisions of the Indenture to the “Description of Notes” section in the Offering Memorandum (and the Trustee may conclusively rely on an Officer’s Certificate from the Company for such purpose); and
WHEREAS, pursuant to Section 14.03 of the Indenture, the Trustee has received an Officer’s Certificate and an Opinion of Counsel from the Company and is authorized to execute and deliver this Supplemental Indenture.
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Company and the Trustee covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:
1.Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.
2.Amendments.  The definition of “Significant Subsidiary” set forth in Article I of the Indenture is hereby amended to replace the reference therein to “Article I, Rule 1-02(w)(2) or (3) of Regulation S-X” with “Article I, Rule 1-02(w)(1) or (2) of Regulation S-X” in order to conform such provision to the “Description of Notes” section of the Offering Memorandum.
3.No Recourse Against Others. An incorporator, director, officer, employee, Affiliate or stockholder of the Company, solely by reason of this status, shall not have any liability for any obligations of the Company under the Notes, the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. By accepting a Note, each Holder waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Notes. 

1922698.02A-NYCSR03A - MSW

4.NEW YORK LAW TO GOVERN.  THIS SUPPLEMENTAL INDENTURE, AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS SUPPLEMENTAL INDENTURE, SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
5.Counterparts.  The parties may sign any number of copies of this Supplemental Indenture.  Each signed copy shall be an original, but all of them together represent the same agreement.
6.Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction hereof.
7.THE TRUSTEE.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Company.
*   *   *
2

IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of the date first above written.

HC2 Holdings, Inc.
By:    /s/ Michael J. Sena            
    Name:    Michael J. Sena
    Title:    Chief Financial Officer

[Signature Page to First Supplemental Indenture]

U.S. Bank National Association
By:    /s/ Richard Prokosch            
    Name:    Richard Prokosch
    Title:    Vice President

[Signature Page to First Supplemental Indenture]

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