Document:

Exhibit

Execution Copy

European Management Term Sheet
Set forth below are the key terms that will apply in respect of the consideration to be received by the Manager (as defined below) in connection with, and upon, the closing of the transactions (collectively, the “Transaction”) contemplated by the Purchase Agreement (the “Purchase Agreement”) by and among Tommy Hilfiger Group BV (together with its subsidiaries, the “Company”), and certain of the Company’s affiliates, and Phillips-Van Heusen Corporation (“Buyer”), and certain of Buyer’s affiliates.
	
		
	Name:
	Daniel Grieder (“Manager”).

	Terms and Conditions of Employment:
	Except as set forth in this term sheet, the terms and conditions of Manager’s employment will remain the same as those in effect as of the closing of the Transaction (the “Closing”; the date of the Closing is referred to herein as the “Effective Date”), and Manager’s current employment agreement (if any) will remain in effect.  In addition, Manager will be eligible to participate in Buyer’s stock incentive plan consistent with similarly situated management members of Buyer and its subsidiaries, including, following the Effective Date, the Company (collectively, the “Buyer Group”), subject to confirmation of legal and regulatory requirements.

	
		
	Transaction Consideration:
	Upon the consummation of the Transaction and subject to Manager’s continued compliance with the terms of the Participation Agreement by and between Manager, the Stichting Administratiekantoor Elmira (the “Stichting”) and Elmira 1 B.V. (the “Participation Agreement”) through the Effective Date, Manager will be entitled to consideration in respect of the number of “Depositary Receipts” (as defined in the Participation Agreement”) issued to Manager by the Stichting and, if applicable, the “Option” to purchase the number of “Option Depositary Receipts” (as each such term is defined in that certain Option Agreement by and among Manager, Luxembourg Elmira 1 Sarl and the Stichting) that Manager has purchased or received from the Stichting, in the amounts described and (other than as set forth in this term sheet) in accordance with the terms of the Participation Agreement and the Purchase Agreement (collectively, the “Transaction Consideration”).  Transaction Consideration to be received by Manager will be subject to the same purchase price adjustments and escrow arrangements as apply to the other selling shareholders. 

	
		
	Cash Consideration:
	60% of the Transaction Consideration shall be payable to Manager in cash as soon as practicable (and in any event, no later than 10 days) after the Effective Date.

    
        

	
		
	Vested Stock Consideration:
	35% of the Transaction Consideration shall be payable to Manager in the form of fully-vested shares of common stock, $1.00 par value, of Buyer (the “Common Stock”), based on the per share price of the Common Stock provided for the payment of consideration to the “Sellers” as such term is defined in, and such price is determined pursuant to, the Purchase Agreement (such vested shares of Common Stock are referred to herein as the “Vested Stock”).  The Vested Stock shall be registered in Manager’s name and held in an escrow account or similar arrangement, and shall be released to Manager in three equal installments on each of the first three anniversaries of the Effective Date or as soon thereafter as is reasonably practicable (but in no event more than five business days thereafter); provided, however, that if Manager’s employment is terminated by the Buyer Group with “Cause” (as defined below) or Manager resigns without “Good Reason” (as defined below) prior to the 18-month anniversary of the Effective Date, then any unreleased Vested Stock shall be released to Manager on the third anniversary of the Effective Date or as soon thereafter as is reasonably practicable (but in no event more than five business days thereafter). 

	 
	 

	Restricted Stock Consideration:

	5% of the Transaction Consideration shall be payable to Manager in the form of restricted shares of Common Stock based on the per share price of the Common Stock provided for the payment of consideration to the Sellers pursuant to the Purchase Agreement (the “Restricted Stock”).  The Restricted Stock shall be registered in Manager’s name and held in a non-bankruptcy remote escrow account or similar arrangement and shall vest in full, become free of any restrictions on the earlier of (i) the second anniversary of the Effective Date, subject to Manager’s continued employment through such date, or (ii) the date of the termination of Manager’s employment by the Buyer Group without Cause, Manager for Good Reason or due to Manager’s death or “Disability” (as defined below) prior to such date.  The Restricted Stock shall be released to Manager on such anniversary or date of termination of employment, as the case may be, or as soon thereafter as is reasonably practicable (but in no event more than 10 business days thereafter).  As used herein, the term “Disability” means that Manager becomes physically or mentally disabled, whether totally or partially, such that he or she is prevented from performing his/her usual duties and services hereunder for a period of 120 consecutive days or for shorter periods aggregating 120 days in any 12-month period.

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	If Manager’s employment with the Buyer Group terminates for any other reason prior to the second anniversary of the Effective Date, the Restricted Stock will be forfeited to Buyer without consideration to Manager and will become part of a pool of restricted shares of Common Stock issued to other persons who are party to Management Term Sheets substantially identical to this Management Term Sheet, whether directly or through an attorney-in-fact (“Management Participants”) and which are forfeited by such Management Participants during the period from the Effective Date through the second anniversary of the Effective Date pursuant to the terms of their Management Term Sheets.  The shares in such pool will be distributed as of the second anniversary of the Effective Date or as soon thereafter as is reasonably practicable (but in no event more than 10 business days thereafter) to Management Participants who have vested in their underlying awards of restricted shares, based on the relative number of restricted shares of Common Stock issued to each such Management Participant at the Effective Date to the total number of restricted shares of Common Stock issued to all Management Participants as of the Effective Date;1 provided, however, if no such restricted shares have vested as of such distribution date, the forfeited restricted shares in such pool shall be distributed instead to the other former non-management shareholders of the Company. 

	 
	 

	Cause:

	For purposes of this term sheet,  “Cause” shall mean (1) gross negligence or willful misconduct, as the case may be, in the performance of the material responsibilities of Manager's office or position, which results in material economic harm to the Company or its affiliates or in material reputational harm causing demonstrable injury to the Company or its affiliates; (2) the willful and continued failure of Manager to perform substantially Manager's duties for the Company or any affiliate (other than any such failure resulting from incapacity due to physical or mental illness), after a written demand for substantial performance is delivered to Manager by the Board of Directors of the Company (the “Board”) or the Company that specifically identifies the manner in which the Board or the Company believes that Manager has not substantially performed Manager's duties, and Manager has not cured such failure to the reasonable satisfaction of the Board or the Company within 20 days following Manager's receipt of such written demand;

_____________________________
1 By way of example, assume that (i) 10 restricted shares are issued to each of 10 Company employees at the Effective Date pursuant to term sheets identical or substantively identical to this one, for a total of 100 restricted shares, and (ii) two of those employees resign prior to the second anniversary of the Effective Date, thereby forfeiting 20 shares.  Ignoring fractional shares, the eight employees who remain employed through the second anniversary of the Effective Date will each receive 1/8 of the 20 shares, computed as 10/80 for each employee. 

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	 (3) Manager is convicted of, or pleads guilty or nolo contendere to, a felony within the meaning of U.S. Federal, state or local law (other than a traffic violation); (4) Manager having willfully divulged, furnished or made accessible to anyone other than the Company, its directors, officers, employees, auditors and legal advisors, otherwise than in the ordinary course of business, any confidential information (as hereinafter defined); or (5) any act or failure to act by Manager, which, under the provisions of applicable law, disqualifies Manager from acting in any or all capacities in which he is then acting for the Company.  
For purposes of this provision, no act or failure to act, on the part of Manager, shall be considered “willful” unless it is done, or omitted to be done, by Manager in bad faith or without reasonable belief that Manager's action or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the instructions of the Board or the Chief Executive Officer of the Company or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by Manager in good faith and in the best interests of the Company.

	 
	 

	Good Reason:

	For purposes of this term sheet, “Good Reason” means the occurrence of any of the following events or circumstances without Manager’s prior written consent:

(1)       the assignment to Manager of any duties inconsistent in any material respect with Manager's position (including status, offices, titles and reporting requirements), authority, duties or responsibilities as in effect immediately prior to the Effective Date, or any other action by the Company that results in a material diminution in such position, authority, duties or responsibilities, excluding for this purpose (i) any changes in Manager’s title, authority or responsibilities solely attributable to the integration process resulting from the Transaction; (ii) an isolated, insubstantial and inadvertent action not taken in bad faith and that is remedied by the Company promptly after receipt of notice thereof given by Manager; and (iii) the assignment of additional or alternate duties or responsibilities to Manager in connection with Manager’s professional development or the reallocation of some of Manager’s duties or responsibilities to other executives of the Company in connection with the evolution of Manager’s position;

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	(2)       a reduction of Manager’s base salary or bonus opportunity as in effect from time to time;
(3)       Buyer’s breach of its obligations regarding compensation and benefit continuation pursuant to Section 6.8(a) of the contemplated Purchase Agreement which breach affects Manager (it being understood that, for the avoidance of doubt, Manager shall not be a third-party beneficiary to such Purchase Agreement); or
(4)      the Company requiring that Manager’s services be rendered primarily at a location or locations more than 60 miles from the location where Manager primarily provides such services as of the date of this Management Term Sheet, except for travel, and visits to Company offices and facilities worldwide, reasonably required to attend to the Buyer Group’s business.
In order to invoke a termination for Good Reason, Manager must provide written notice to the Company of the existence of one or more of the conditions described in clauses (1) through (4) within 30 days following Manager’s knowledge of the initial existence of such condition or conditions, specifying in reasonable detail the conditions constituting Good Reason, and the Company shall have 30 days following receipt of such written notice (the “Cure Period”) during which it may remedy the condition if such condition is reasonably subject to cure.  In the event that the Company fails to remedy the condition constituting Good Reason during the applicable Cure Period, the Manager’s termination of employment must occur, if at all, within 30 days following such Cure Period in order for such termination as a result of such condition to constitute a termination for Good Reason.

	 
	 

	Stichting:
	Manager hereby consents and agrees that the Stichting may transfer the shares in Elimra 1 B.V. represented by such Manager’s Depositary Receipts in accordance with the Purchase Agreement and that the Stichting may take each and every action necessary to consummate the transactions contemplated in the Purchase Agreement and grants the Stichting all powers necessary to effect all of the foregoing. Manager consents and agrees to any amendment or waiver necessary in connection therewith under or pursuant to the Participation Agreement and/or the articles of association and other governing documents of the Stichting and the Depositary Receipts and Options issued by the Stichting and any ancillary or related agreements.

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	Additional Agreements:
	Manager will enter into such additional agreements as are determined by Buyer to be necessary to effectuate the terms of this Management Term Sheet and the actions contemplated hereby, including, to the extent necessary, an agreement with the Stichting with respect to Manager’s receipt, and the form, of Transaction Consideration.

	 
	 

	Governing Law:
	Netherlands.

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By signing below, the parties agree that this Management Term Sheet will be binding upon the parties as of the Effective Date. This Management Term Sheet will not be effective unless and until the Closing occurs.  The parties intend to complete full documentation based on these terms and other terms customary for transactions of this type, which will supersede this term sheet.
Signed,
	
		
	Manager
	PHILLIPS-VAN HEUSEN CORPORATION

	By:     /s/ Daniel Grieder    
Daniel Grieder

	By:     /s/ Mark D. Fischer    
Name:   Mark D. Fischer
     Senior Vice President 

Date: March 10, 2010

7Exhibit 10.1

 

March 21, 2016

 

Pioneer Power Solutions, Inc.

Pioneer Electrogroup Canada Inc.

400 Kelby Street, 9th Floor

Fort Lee, NJ 07024

	Attention:	Thomas Klink

 

	 	
        

        Re:
	
        Limited
Duration Waiver and Consent Letter

 

Gentlemen:

 

Reference is hereby
made to that certain Credit Agreement dated as of June 28, 2013, as amended (the “PPSI Credit Agreement”),
between Pioneer Power Solutions, Inc. (the “US Borrower”), the Guarantors party thereto and Bank of Montreal
(the “Bank”), acting through its Chicago branch, to that certain Amended and Restated Letter Loan Agreement
dated as of June 28, 2013, as amended, among Pioneer Electrogroup Canada Inc., a Quebec corporation (“PECI”)
as borrower (the “Canadian Borrower”), and the Bank (“PECI Letter Loan Agreement”) and the
Limited Duration Waiver and Consent Letter dated November 18, 2015 issued by the Bank and consented to by the US Borrower and the
Canadian Borrower (the 1st Waiver and Consent Letter”). Capitalized terms used herein without definition
shall have the same meanings herein as such terms have in the PPSI Credit Agreement and in the 1st Waiver and Consent
Letter.

 

As indicated in the
1st Waiver and Consent Letter, the US Borrower disclosed to the Bank on November 4, 2015 its failure to pay the
Payroll Tax Liability and that based on the September 30, 2015, draft financial statements and covenant forecast furnished
by the US Borrower to the Bank, the Loan Parties and their Subsidiaries were not able to comply with the financial covenant levels
set forth in Section 8.23(e) as of September 30, 2015, and the Loan Parties and their non-Canadian Subsidiaries were not in
compliance with respect to the Total Leverage Ratio covenant set forth in Section 8.23(a) of the PPSI Credit Agreement and
the Fixed Charge Coverage Ratio covenant set forth in Section 8.23(c) of the PPSI Credit Agreement. Each such event, along
with the default by the Canadian Borrower set forth in the next paragraph, constituted and still constitutes an Event of Default
under Section 9.1 of the PPSI Credit Agreement.

 

     

     

    

 

Also as stated in the
1st Waiver and Consent Letter, based on the draft financial statements for the quarter ending September 30, 2015 submitted
to the Bank, the Canadian Borrower was and is still in default to comply with the financial assistance restrictions set forth in
paragraph 1.5 of Schedule VI (Negative Covenants) of the PECI Letter Loan Agreement. Such default along with the events of default
of the US Borrower under the PPSI Credit Agreement constitute Events of Default under the PECI Letter Loan Agreement.

 

The US Borrower, the
Canadian Borrower and the Guarantors under the PPSI Credit Agreement and the PECI Letter Loan Agreement (collectively the “Obligors”)
requested that the Bank waive the defaults described in the two prior paragraphs (the “Existing Defaults”).The
Bank waived the Existing Defaults through January 31, 2016 as appears from the 1st Waiver and Consent Letter.

 

At the request of the
US Borrower, PECI was also permitted to borrow up to the equivalent in Canadian dollars of US$3,000,000 under Facility A under
the PECI Letter Loan Agreement (subject to availability under the monthly margin requirement set forth in the PECI Letter Loan
Agreement) and on-lend those proceeds to the US Borrower for working capital.

 

Since then, the Bank
has engaged the services of a financial advisor to perform certain tasks and verifications as further described in the 1st
Waiver and Consent Letter. Although the financial advisor has completed some of the required tasks, further work needs to be performed
to conclude their engagement and accordingly the Bank needs additional time to analyze the information that it has and the information
that will be provided to it.

 

In the interim, the
US Borrower and the Canadian Borrower have requested the following:

 

		a)	PECI be further allowed to increase its borrowings under Facility A of the PECI Letter Loan
Agreement up to the equivalent in Canadian dollars of US$5,000,000 (subject to the maximum under the PECI Letter Loan Agreement
and the availability under the monthly margin requirement set forth in the PECI Letter Loan Agreement as amended temporary under
b) below) and on-lend those proceeds to the Borrower for working capital (the “Intercompany Loan”), and
	 	 	 

		b)	For the PECI Letter Loan Agreement: a forward margin deficit provision up to a maximum amount of
the equivalent in Canadian dollars of $5,000,000 and for the PPSI Credit Agreement: a forward margin deficit provision up to a
maximum amount of US$5,000,000. For greater clarity, it is understood that such forward margin deficit provisions shall not allow
any aggregate borrowings by the Borrowers above the maximum authorized amounts under the PECI Letter Loan Agreement and the PPSI
Credit Agreement.

 

    	 	- 2 -	 

     

    

 

(the “Temporary
Covenant Accommodations”) 

 

In light of the above,
the Bank hereby waives the Existing Defaults and agrees to tolerate the Temporary Covenant Accommodations through April 30, 2016
and only through April 30, 2016, subject to the Obligors’ strict compliance with the following conditions:

 

	(a)	Conditions for the Intercompany Loan. The Bank hereby consents to the Intercompany Loan
provided that the advance to PECI to make such Intercompany Loan will be deemed to be a US Base Rate advance bearing interest at
the US Base Rate plus 2.50% per annum under the PECI Letter Loan Agreement and will be fully secured by all Security Documents
referred to in such PECI Letter Loan Agreement. The amount of financial assistance (by way of loan, guarantee or otherwise) set
forth in paragraph 1.5 of Schedule VI (Negative Covenants) of the PECI Letter Loan Agreement to any of the persons enumerated in
the said paragraph 1.5 is hereby amended to provide for a maximum aggregate amount which is comprised of an amount of US$4,115,641
(the aggregate amount of financial assistance as of June 30, 2015) plus the principal amount of the Intercompany Loan up to US$5,000,000.
PECI will not be entitled to make any draw under Facility A for the purpose of making advances under the Intercompany Loan
to the US Borrower (“Interco Loan Drawing”) unless it has received the specific written authorization of the
Bank for each drawing. In order for the Bank to consider any such drawing, PECI will need to submit to the Bank, at least two (2)
Business Days before any proposed drawing, a notice of borrowing signed by Nathan Mazurek and Thomas Klink of PECI together with
a list of the invoices/items/payables the US Borrower intends to pay with such drawing and the reason for such payments.

 

(b)Bank’s Financial
Advisor. The Bank has retained the services of a financial advisor, namely Alvarez & Marsal Canada ULC (“A&M”)
which engagement was accepted by the Obligors on December 2, 2015. The Bank shall continue to have the right to engage on its own
behalf a financial advisor to evaluate the financial condition, operating performance, and business prospects of the Obligors and
to perform such other information gathering or evaluation acts as may be reasonably requested by the Bank, and the costs and expenses
of such financial advisor shall be borne by the Obligors and constitute part of the Obligations. Each Obligor shall take reasonable
steps to make available to such financial advisor and its representatives such information respecting the financial condition,
operating performance, and business prospects of such Obligor as may be reasonably requested and shall make its officers, employees,
and independent public accountants available with reasonable prior notice to discuss such information with such financial advisor
and its representatives.

 

(c)Cash Flow and
Variance Reports. No later than Tuesday of each week, the US Borrower shall continue to provide to the Bank an updated 13-week
cash flow forecast showing projected cash receipts and cash disbursements (including referencing line item sources and uses of
cash) of the US Borrower and its Subsidiaries over the following 13-week period, together with a reconciliation of actual cash
receipts and cash disbursements of the US Borrower and its Subsidiaries from the prior week against the prior week forecast and
showing any deviations on a cumulative basis and providing a written explanation of the variances), prepared by the US Borrower
and in form and substance, and with such detail, as the Bank may request. In addition, the Canadian Borrower shall continue to
provide to the Bank no later than Tuesday of each week a 13-week cash flow forecast showing projected cash receipts and cash disbursements
(including referencing line item sources and uses of cash) for its activities and those of its subsidiaries, if any, in the form
currently delivered to the Bank or with such modifications as may be requested by the Bank from time to time.

 

    	 	- 3 -	 

     

    

 

(d)Monthly Reporting.

 

(i) PPSI Credit Agreement
Reporting. The US Borrower shall continue to provide the financial reporting required by Section 8.5(b) of the PPSI Credit
Agreement for the four quarters of each fiscal year within 45 days after the last day of each quarter and shall also provide the
Bank, for non-quarter-end months, with balance sheets and statements of income, on a consolidated and non-consolidated basis, within
30 days of the last day of each month.

 

(ii) PECI Letter Loan
Agreement Reporting. The Canadian Borrower shall continue to provide the financial reporting required by clause (b) of the
Reporting Requirements section of the PECI Letter Loan Agreement for the four quarters of each fiscal year within 45 days after
the last day of each quarter and shall also provide the Bank, for non-quarter-end months, with balance sheets and statements of
income, on a consolidated and non-consolidated basis, within 30 days of the last day of each month.

 

(e)No Permitted Acquisitions.
Notwithstanding the terms of the PPSI Credit Agreement, the US Borrower shall not be permitted to do any Acquisitions.

 

(f)Payroll Tax Liability.
The US Borrower shall deliver to the Bank copies of any agreements and communications with the IRS promptly upon receiving or sending
the same.

 

(g)Default Rate Pricing
In Effect. Notwithstanding the waivers contained herein, and as stipulated in the 1st Waiver and Consent Letter,
from and after November 16, 2015, (i) the Obligations under the PPSI Credit Agreement shall bear interest at the default
rate as provided in Section 2.9 thereof until the Bank has advised in writing to the contrary, (ii) the US Borrower will not
be permitted to continue Eurodollar Loans with Interest Periods of longer than one (1) month, nor convert any U.S. Prime Rate Loans
into Eurodollar Loans with Interest Periods of longer than one (1) month, (iii) all outstanding advances under the PECI Letter
Loan Agreement shall bear interest at the default rate set forth in the PECI Letter Loan Agreement; (iv) PECI will not be
permitted to make any advances at LIBOR with an interest period in excess of one (1) month and (v) the interest rate for any LIBOR
advance or bankers acceptances under the PECI Letter Loan Agreement shall be specifically amended so that all such LIBOR advances
or bankers acceptances bear interest at the applicable rate set forth in such PECI Letter Loan Agreement plus 2% per annum.

 

    	 	- 4 -	 

     

    

 

(h)Acknowledgement. The
US Borrower acknowledges and agrees that the principal balance (excluding
interest and fees) owed to the Bank under the PPSI Credit Agreement as of March 18, 2016 was US$14,290,990.85, as further detailed
in Annex “A”. Also, PECI acknowledges and agrees that the principal balance (excluding interest and fees) owed
to the Bank under the PECI Letter Loan Agreement as of March 18, 2016 was CAN$765,087.69 and US$ 4,641,916.10, as further detailed
in Annex “B”. 

 

This consent and waiver
is limited to the matters and for the periods expressly set forth above. By its execution of this letter, the Obligors agree that
they remain obligated to comply with the terms of the PPSI Credit Agreement and PECI Letter Loan Agreement, and that the Bank shall
not be obligated in the future to waive any provision of the PPSI Credit Agreement or the PECI Letter Loan Agreement. On April
30, 2016 or any earlier date if the financial information received by the Bank from its financial advisor confirms a significant
deterioration of the Obligors’ financial situation or if the security position of the Bank is, in the sole opinion of the
Bank, insufficient, this waiver shall become null and void and from and after such date, the Bank shall have all of the rights
available to it as a result of the Existing Defaults and the Temporary Covenant Accommodations shall no longer be in force and
effect or tolerated, all as though this waiver had never been granted, unless a further amendment or waiver is granted pursuant
to the PPSI Credit Agreement and the PECI Letter Loan Agreement.

 

Except as specifically
waived or amended hereby, all of the terms and conditions of the PPSI Credit Agreement and the PECI Letter Loan Agreement stand
and remain in full force and effect. This waiver letter shall be effective upon the execution and delivery hereof by the Bank and
the Obligors. Please provide your consent to the conditions set forth in this waiver letter to the Bank by no later than March
24, 2016.

 

This waiver letter
may be executed in any number of counterparts, and by different parties on separate counterpart signature pages, each of which
shall constitute an original and all of which taken together shall constitute one and the same instrument. Delivery of a counterpart
hereof by facsimile transmission or by e-mail transmission of an Adobe portable document format file (also known as a “PDF”
file) shall be effective as delivery of a manually executed counterpart hereof.

 

    	 	- 5 -	 

     

    

 

This waiver letter
is entered into between us as of the date and year first above written.

 

	 	Bank of Montreal, acting through its Chicago Branch
	 	 	 	 
	 	By	/s/ Randon Gardley
	 	 	Name	Randon Gardley
	 	 	Title	Vice President
	 	 	 	 
	 	Bank of Montreal
	 	 	 	 
	 	By	/s/ Doreen Peters
	 	 	Name	Doreen Peters
	 	 	Title	Account Manager
	 	 	 	 
	 	By	/s/ Michael Masson
	 	 	Name	Michael Masson
	 	 	Title	Account Manager

 

[Signature Page to
Waiver Letter]

 

     

     

    

 

This waiver letter
is acknowledged and agreed to as of the date and year first above written.

 

	 	Pioneer Power Solutions, Inc.
	 	 	 	 
	 	By	/s/ Nathan Mazurek
	 	 	Name:	Nathan Mazurek
	 	 	Title:	President
	 	 	 	 
	 	By	/s/ Thomas Klink
	 	 	Name	Thomas Klink
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	Pioneer Electrogroup Canada Inc.
	 	 	 	 
	 	By	/s/ Nathan Mazurek
	 	 	Name	Nathan Mazurek
	 	 	Title:	President
	 	 	 	 
	 	By	/s/ Thomas Klink
	 	 	Name	Thomas Klink
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	Jefferson Electric, Inc.
	 	 	 	 
	 	By	/s/ Nathan Mazurek
	 	 	Name	Nathan Mazurek
	 	 	Title:	President
	 	 	 	 
	 	By	/s/ Thomas Klink
	 	 	Name	Thomas Klink
	 	 	Title:	Chief Financial Officer

  

[Signature Page to
Waiver Letter]

 

     

     

    

 

	 	Pioneer Critical Power Inc.
	 	 	 	 
	 	By	/s/ Nathan Mazurek
	 	 	Name	Nathan Mazurek
	 	 	Title:	President
	 	 	 	 
	 	By	/s/ Thomas Klink
	 	 	Name	Thomas Klink
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	Pioneer Custom Electrical products corp.
	 	 	 	 
	 	By	/s/ Nathan Mazurek
	 	 	Name	Nathan Mazurek
	 	 	Title:	President
	 	 	 	 
	 	By	/s/ Thomas Klink
	 	 	Name	Thomas Klink
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	Titan Energy Systems, Inc.
	 	 	 	 
	 	By	/s/ Nathan Mazurek
	 	 	Name	Nathan Mazurek
	 	 	Title:	President
	 	 	 	 
	 	By	/s/ Thomas Klink
	 	 	Name	Thomas Klink
	 	 	Title:	Chief Financial Officer

 

[Signature Page to
Waiver Letter]

 

     

     

    

 

Annex A

 

	Pioneer Power Solutions Inc: Outstanding Borrowings as of March 18, 2016
	Credit Facility	Borrowings in CAD	Borrowings in USD
	Revolving Facility; Revolving Credit Line	 	9,538,106.87
	Term Loan Facility	 	4,750,000.00
	Corporate MasterCard	 	2,883.98
	Total Borrowings	 	14,290,990.85

 

     

     

    

 

Annex B

 

	Pioneer Electrogroup Canada Inc: Outstanding Borrowings as of March 18, 2016
	Credit Facility	Borrowings in CAD	Borrowings in USD
	Facility A: Revolving Demand Loan	288,258.75	3,857,916.10
	Facility B: 5 year Term Loan	471,288.71	0
	Facility C: 5 year Term Loan	0	784,000
	Facility D: Corporate MasterCard	5,540.23	0
	Total Borrowings	765,087.69	4,641,916.10

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