Document:

EX-10.1

 Exhibit 10.1 

August 21, 2015 
 Mr. Richard J. Alario

 Key Energy Services, Inc. 
 1301 McKinney
Street 
 Suite 1800 
 Houston, Texas 77010

  

	RE:	Letter Agreement Regarding Continued Employment Terms 

 Dear Mr. Alario: 

Key Energy Services, Inc. (the “Parent”) and Key Energy Services, LLC (the
“Company”) wish to enter into this letter agreement (the “Letter Agreement”) with you (“you” or “Executive”) in order to address the circumstances of
your continued employment and future retirement from employment with the Parent and the Company and the benefits due upon such retirement. Please carefully review this Letter Agreement, and, if you agree, return a signed copy of your acceptance as
indicated below to Dwight W. Rettig, Interim General Counsel. 
 The Parent, the Company and Executive are
parties to that certain Amended and Restated Employment Agreement, entered into as of December 31, 2007, as amended (the “Employment Agreement”). The Parent, the Company and Executive agree that the Employment Agreement
shall be amended and superseded as necessary to give full effect to the terms and provisions of this Letter Agreement. Capitalized terms not defined in this Letter Agreement shall have the meaning assigned to such term in the Employment
Agreement. 
 In consideration of the mutual agreements set forth herein and in the Employment Agreement, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parent, the Company and Executive hereby agree as follows, effective as of August 21, 2015: 

 

	 	1.	Employment Position; Resignation as Chairman. The Parent agrees to continue to employ Executive as its Chief Executive Officer, and Executive hereby accepts such employment. Effective as of the date hereof,
Executive resigns as Chairman of the Board of Directors of Parent (the “Board”), but agrees to remain a member of the Board. 

  

	 	2.	Term of Employment. Executive’s employment hereunder shall continue from the date hereof until December 31, 2016 or such earlier date as the Board requests Executive’s resignation (the
“Retirement Date”). Effective on the Retirement Date, Executive hereby resigns from his position as Chief Executive Officer of the Parent, as a member of the Board and from any other officer or director positions of any
direct or indirect subsidiary of the Parent. Executive agrees to take any and all further acts necessary to accomplish these resignations. 

  
 1 

	 	3.	Compensation Prior to the Retirement Date. During Executive’s employment under the Letter Agreement, Executive shall be entitled to compensation and benefits that are no less favorable to Executive than
those provided to Executive immediately prior to the date of this Letter Agreement, including, without limitation, Base Salary, Equity-Based Incentives and incentive opportunities under Performance Cash Compensation Plans. 

 

	 	4.	Good Reason Waiver. Executive hereby consents to, and shall not have Good Reason as a result of, Executive’s replacement as the Chairman of the Board, Executive’s retirement as Chief Executive Officer
of the Parent and any other resignations made pursuant to Section 2 of this Letter Agreement. 

  

	 	5.	Change in Control. Notwithstanding any of the provisions of this Letter Agreement to the contrary, if a Change in Control occurs prior to the Retirement Date, the following provisions shall apply: (i) upon a
Change in Control Executive shall be entitled to the benefits provided in Section 5(e) of the Employment Agreement, as applicable, and (ii) if Executive’s employment is terminated by Executive for Good Reason, by the Company not for
Cause or by the Company for Disability, any of which occur within one year after a Change in Control, or if the Retirement Date occurs within one year after a Change in Control, then upon termination of employment Executive shall be entitled to
(A) the same amount and form of the benefits provided under Section 6 of this Letter Agreement and (B) an additional amount (the “Enhanced Severance Payment”) equal to one (1) times the Base Salary paid in
a lump sum on the date that is sixty (60) days after the date of Executive’s termination. If Executive’s termination is due to Disability, the amount of the Enhanced Severance Payment shall be reduced by disability insurance proceeds
as provided in Section 5(d)(iii) of the Employment Agreement. 

  

	 	6.	Compensation and Benefits Due Upon the Retirement Date. Upon the Retirement Date and subject to Executive’s execution of a release in a manner consistent with Section 5(d)(iv) of the Employment
Agreement, Executive shall be entitled to the following: 

  

	 	(a)	Severance compensation in an aggregate amount equal to three (3) times the Base Salary (at the rate in effect as of the date of termination, but not less than $865,000 per year), payable in thirty-six
(36) substantially equal monthly installments commencing at the end of the calendar month in which the date of termination occurs. Each subsequent monthly installment payment shall be paid on or about the first day of the month to which it
relates. 

  

	 	(b)	Continuation of benefits as provided in Section 5(f) of the Employment Agreement; 

  

	 	(c)	Equity-Based Incentives held by Executive as of the Retirement Date shall be treated as provided in Section 5(e)(i) of the Employment Agreement, with any outstanding award of Performance Units becoming vested and
paid as provided in Section 5(b) of the applicable Performance Unit Award Agreement; and 

  

	 	(d)	Executive shall be eligible for payments under Performance Cash Compensation Plans as if Executive satisfied all service requirements applicable thereunder with respect to the calendar year in which the Retirement Date
occurs. 

  
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 For the avoidance of doubt, as of the Retirement Date, the Parent, the Company
and Executive anticipate that the level of Executive’s services to the Company and its affiliates will permanently decrease such that Executive shall be considered to have incurred a “separation from service” with the Parent, the
Company and their affiliates within the meaning of Treas. Reg. § 1.409A-1(h)(1)(ii) as of the Retirement Date. 
  

	 	7.	Termination of Employment Prior to December 31, 2016. If the Board requests Executive’s resignation prior to December 31, 2016, or if Executive terminates his employment for Good Reason (taking
into account the waiver in Section 4 of this Letter Agreement) prior to December 31, 2016, then Executive shall be entitled to the compensation and benefits provided in Section 6; provided, however, that if the Board has requested
Executive’s resignation, the severance amount in Section 6(a) shall be increased by the Base Salary at the rate in effect at the time of resignation that would have been paid to Executive from the date of termination through
December 31, 2016 had Executive remained employed through December 31, 2016; provided further that in no event shall the severance amount in Section 6(a) be increased by more than 6 months Base Salary. 

 

	 	8.	No Adverse Cooperation. Executive agrees not to act in any manner that might damage the business of the Parent, the Company and their partners, subsidiaries, affiliates, and related companies and any predecessors
thereto, and its and their present and former agents, employees, officers, directors, owners, stockholders, attorneys, insurers, plan fiduciaries, successors and assigns, whether in their individual or official capacities (collectively, the
“Key Parties”). Executive further agrees that Executive will not knowingly encourage, counsel, or assist any attorneys or their clients in the presentation or prosecution of any disputes, differences, grievances, claims,
charges or complaints by any third party against any of the Key Parties unless under a subpoena or other court order to do so. Executive agrees both to immediately notify the Company upon receipt of any such subpoena or court order, and to furnish,
within three (3) business days of its receipt, a copy of such subpoena or other court order to the Company. If approached by anyone for counsel or assistance in the presentation or prosecution of any disputes, differences, grievances, claims,
charges or complaints against any of the Key Parties, Executive shall state no more than that he cannot provide counsel or assistance. This provision does not apply to any assistance or cooperation that Executive may be asked to provide to the U.S.
Securities and Exchange Commission (“SEC”) or the U.S. Department of Justice (“DOJ”) in connection with the investigations that are discussed in the Parent’s Form 10-K for the year ended
December 31, 2014. 

  
 3 

	 	9.	Cooperation. Executive agrees to cooperate, at the reasonable request of the Key Parties, in the defense and/or prosecution of any charges, claims, investigations (internal or external), administrative
proceedings, and/or lawsuits relating to matters occurring during Executive’s period of employment, including, but not limited to, the investigations that are discussed in the Parent’s Form 10-K for the year ended December 31, 2014,
and to make himself reasonably available upon request for interviews by the Parent and/or its outside counsel as necessary to accomplish this requirement. Executive further agrees to consider, in good faith, in consultation with his counsel as
applicable, requests from the SEC and/or DOJ, as well as from outside counsel of the Parent, to cooperate with the SEC and/or DOJ in connection with any investigations, including, but not limited to, investigations that are discussed in the
Parent’s Form 10-K for the year ended December 31, 2014, in such form and extent that are required for the purposes of such investigations, and during the entire period of their duration. The Company agrees to reimburse Executive for
travel costs and reasonable incidental expenses incurred in connection with such cooperation. Executive acknowledges that any payment, advancement, or reimbursement of legal fees incurred in connection with such cooperation will be governed by the
advancement and indemnification provisions of the Parent’s Directors’ and Officers’ insurance policy, the Company’s charter documents, and Maryland law. In performing Executive’s obligations under this paragraph to testify
or otherwise provide information, Executive will honestly, truthfully, forthrightly, and completely provide the information requested. The parties agree that notwithstanding any provision of this Letter Agreement or the Employment Agreement to the
contrary, neither this Letter Agreement nor the Employment Agreement shall prevent Executive from disclosing information to governmental authorities. 

  

	 	10.	Effect on Employment Agreement. The terms and provisions of the Employment Agreement, including but not limited to Sections 6 through 16 and Sections 18 through 22, shall continue in effect; provided, however,
that to the extent that this Letter Agreement conflicts with the Employment Agreement, this Letter Agreement shall supersede the Employment Agreement. For the avoidance of doubt, this Letter Agreement shall not result in any duplication of benefits
under the Employment Agreement. 

  

	 	11.	Amendment; Governing Law. This Letter Agreement may not be amended, supplemented, cancelled or discharged except by a written instrument executed by the parties hereto. This Letter Agreement shall, in all
respects, be interpreted, enforced, and governed under the laws of the State of Texas, in the federal or state courts in Harris County. 

Signature Pages Follow 

  
 4 

 
			
	KEY ENERGY SERVICES, INC.
		
	By:	 	 /s/ Robert Drummond

	Robert Drummond
	President & Chief Operating Officer
	
	KEY ENERGY SERVICES, LLC
		
	By:	 	 /s/ Robert Drummond

	Robert Drummond
	President & Chief Operating Officer

  
 5 

 Executive’s Acceptance 

As evidenced by my signature below, I hereby agree to the terms and provisions of the Letter Agreement. 

Agreed this 21st day of August, 2015. 

 

	
	 /s/ Richard J. Alario

	Richard J. Alario

  
 6Exhibit

Exhibit 10.1

FORBEARANCE AGREEMENT

This FORBEARANCE AGREEMENT (this "Agreement"), dated as of August 20, 2015, is by and between Essex Crane Rental Corp., a Delaware limited liability company ("Borrower") and Wells Fargo Capital Finance, LLC, in its capacity as agent under the Credit Agreement defined below ("Agent"), and all Lenders under such Credit Agreement.

R E C I T A L S:
WHEREAS, Agent, Lenders, Borrower, and Essex Holdings, LLC, a Delaware Limited Liability Company ("Parent"; together with Borrower, collectively, "Loan Parties") have entered into certain financing arrangements pursuant to that certain Fourth Amended and Restated Credit Agreement dated as of May 13, 2014 (as amended, supplemented, extended, renewed, restated, replaced, or otherwise modified, the "Credit Agreement");
WHEREAS, as of the date hereof, Events of Default under the Credit Agreement and the other Loan Documents have occurred and are continuing or are expected to occur and be continuing;
WHEREAS, Loan Parties have requested that, subject to the terms and conditions of this Agreement, Agent and Lenders forbear from exercising their rights as a result of such Events of Default, and that Lenders agree to provide further Loans and other financial accommodations to Loan Parties notwithstanding such Events of Default; and
WHEREAS, Agent and Lenders are willing to agree to forbear from exercising certain of their rights and remedies and provide certain further Loans and other financial accommodations to Borrower solely for the period and on the terms and conditions specified herein.
NOW, THEREFORE, in consideration of the foregoing, and the respective agreements, warranties, and covenants contained herein, the parties hereto agree as follows:
SECTION 1.  DEFINITIONS

1.1    Interpretation.  All capitalized terms used herein (including the recitals hereto) will have the respective meanings ascribed thereto in the Credit Agreement unless otherwise defined herein.  The foregoing recitals, together with all exhibits attached hereto, are incorporated by this reference and made a part of this Agreement.  Unless otherwise provided herein, all section and exhibit references herein are to the corresponding sections and exhibits of this Agreement.

1.2    Additional Definitions.  As used herein, the following terms will have the respective meanings given to them below:
(a)"Existing Defaults" means, collectively, the Events of Default identified on Exhibit A hereto.
(b)"Forbearance Period" means the period commencing on the date hereof and ending on the date which is the earliest of (i) September 11, 2015, (ii) upon written notice from and at the election of Agent, the occurrence or existence of any Event of Default, other than the Existing Defaults, or (iii) the occurrence of any Termination Event.
(c)"Termination Event" means (i) the initiation of any action by any Loan Party or any Releasing Party (as defined herein) to invalidate or limit the enforceability of any of the acknowledgments set forth in Section 2, the release set forth in Section 7.6 or the covenant not to sue set forth in Section 7.7 or (ii) the occurrence of an Event of Default under Sections 8.4 or 8.5 of the Credit Agreement.

SECTION 2.  ACKNOWLEDGMENTS

2.1    Acknowledgment of Obligations.  Each Loan Party hereby acknowledges, confirms, and agrees that as of the close of business on August 19, 2015: (a) Borrower is indebted to the Revolving Lenders in respect of the Revolving Loans in the principal amount of $120,690,227.12, (b) Borrower is indebted to the Term Lenders in respect of the Term Loan in the principal amount of $30,000,000.00, and (c) Borrower is indebted to Issuing Bank in respect of the Letter of Credit Usage in the principal amount of $24,630.00.  Each Loan Party hereby acknowledges, confirms, and agrees that all such Obligations (of which not less than $31,837,612.43 constituted an Overadvance as of the close of business on August 19, 2015, but calculated using Collateral values reported by Borrower as of July 31, 2015, the "Existing Overadvance"), together with interest accrued and accruing thereon, and all fees, costs, expenses, and other charges now or hereafter payable to Agent or Lenders, in each case in accordance with the terms of the Loan Documents, are unconditionally owing by each Loan Party, without offset, defense, or counterclaim of any kind, nature, or description whatsoever.

Exhibit 10.1

2.2    Acknowledgment of Security Interests.  Each Loan Party hereby acknowledges, confirms, and agrees that Agent has, and will continue to have, valid, enforceable, and perfected first-priority continuing liens upon and security interests in the Collateral heretofore granted to Agent, for the benefit of Agent and Lenders, pursuant to the Guaranty and Security Agreement and the other Loan Documents or otherwise granted to or held by Agent, for the benefit of Agent and Lenders.

2.3    Binding Effect of Documents.  Each Loan Party hereby acknowledges, confirms and agrees that: (a) this Agreement constitutes a Loan Document; (b) each of the Credit Agreement and the other Loan Documents to which it is a party has been duly executed and delivered to Agent by Borrower, and each is and will remain in full force and effect as of the date hereof except as modified pursuant hereto; (c) the agreements and obligations of such Loan Party contained in such documents and in this Agreement constitute legal, valid, and binding Obligations, enforceable in accordance with their respective terms, and such Loan Party has no valid defense to the enforcement of such Obligations; (d) Agent and Lenders are and will be entitled to the rights, remedies, and benefits provided for under the Credit Agreement and the other Loan Documents and applicable law; and (e) during the Forbearance Period, such Loan Party shall comply with all limitations, restrictions, or prohibitions that would otherwise be effective or applicable under the Credit Agreement or any of the other Loan Documents during the continuance of any Event of Default, and except to the extent expressly provided otherwise in this Agreement, any right or action of such Loan Party set forth in the Credit Agreement or the other Loan Documents that is conditioned on the absence of any Event of Default may not be exercised or taken as a result of the Existing Defaults.

SECTION 3.  FORBEARANCE IN RESPECT OF EXISTING DEFAULTS

3.1    Acknowledgment of Default.  Each Loan Party hereby acknowledges and agrees that the Existing Defaults have occurred and are continuing (or are expected to occur and be continuing), each of which constitutes (or will constitute) an Event of Default and entitles Agent and Lenders to exercise their respective rights and remedies under the Credit Agreement and the other Loan Documents, applicable law, or otherwise.  Each Loan Party represents and warrants that as of the date hereof, no Events of Default exist other than the Existing Defaults.  Each Loan Party hereby acknowledges and agrees that Agent and Lenders have the exercisable right to declare the Obligations to be immediately due and payable under the terms of the Credit Agreement and the other Loan Documents based on the Existing Defaults.  Each Loan Party acknowledges that, immediately prior to the effectiveness of this Agreement, Revolving Lenders are no longer obligated to make any further Revolving Loans as a result of the Existing Defaults.

3.2    Forbearance.

(a)In reliance upon the representations, warranties, and covenants of Loan Parties contained in this Agreement, and subject to the terms and conditions of this Agreement and any documents or instruments executed in connection herewith, Agent and Lenders agree to forbear during the Forbearance Period from exercising their respective rights and remedies under the Credit Agreement, other Loan Documents, and applicable law in respect of the Existing Defaults.
(b)Upon the expiration or termination of the Forbearance Period, the agreement of Agent and Lenders to forbear will automatically and without further action terminate and be of no force and effect, it being expressly agreed that the effect of such termination will be to permit Agent and Lenders to exercise immediately all rights and remedies under the Credit Agreement and the other Loan Documents and applicable law, including, but not limited to, (i) ceasing to make any further Revolving Loans or issuing any further Letters of Credit and (ii) accelerating all of the Obligations under the Credit Agreement and the other Loan Documents, in all events, without any further notice to Loan Parties, passage of time, or forbearance of any kind.

3.3    No Waivers; Reservation of Rights.

(a)    Agent and Lenders have not waived, are not by this Agreement waiving, and have no intention of waiving, any Events of Default which may be continuing on the date hereof or any Events of Default which may occur after the date hereof (whether the same or similar to the Existing Defaults or otherwise), and Agent and Lenders have not agreed to forbear with respect to any of their rights or remedies concerning any Events of Default (other than, during the Forbearance Period, the Existing Defaults to the extent expressly set forth herein) occurring at any time.
(b)    Subject to Section 3.2 above (solely with respect to the Existing Defaults), Agent and Lenders reserve the right, in their discretion, to exercise any or all of their rights and remedies under the Credit Agreement and the other Loan Documents as a result of any other Events of Default occurring at any time.  Agent and Lenders have not waived any of such rights or remedies, and nothing in this Agreement, and no delay on their part in exercising any such rights or remedies, may or will be construed as a waiver of any such rights or remedies.

3.4    Additional Events of Default.  The parties hereto acknowledge, confirm, and agree that any misrepresentation by any Loan Party, or any failure of any Loan Party to comply with the covenants, conditions and agreements contained in this 

Exhibit 10.1

Agreement will constitute an immediate default under this Agreement and an immediate Event of Default under the Credit Agreement and the other Loan Documents.  Notwithstanding the  existence of the Forbearance Period, in the event that any Person, other than Agent or Lenders, at any time exercises for any reason (including, without limitation, by reason of any Existing Defaults, any other present or future Event of Default, or otherwise) any of its rights or remedies against any Loan Party or any other obligor providing credit support for the Obligations, or against any Loan Party's or such other obligor's properties or assets, in each case, of the type that would constitute an Event of Default under the terms and provisions of the Credit Agreement and the other Loan Documents, then such occurrence shall also be deemed to constitute an immediate Event of Default hereunder and under the Credit Agreement and the other Loan Documents.

SECTION 4.  CERTAIN AGREEMENTS AND COVENANTS

4.1    Forbearance Period Revolving Loans.  Notwithstanding anything to the contrary, each Loan Party acknowledges and agrees that, during the Forbearance Period, Borrower shall only be entitled to request, the Revolving Lenders agree to make, and the Term Lenders consent to the Revolving Lenders making, additional Revolving Loans (a) to the extent necessary to enable Borrower to pay the expenses set forth in the budget attached hereto as Exhibit C (the "Budget") as and when such expenses are due and payable, and (b) to the extent the aggregate Overadvance under the Credit Agreement does not exceed an amount equal to the Existing Overadvance plus $500,000 (after giving effect to each such advance of Revolving Loans, but determined without regard to the Term Loan interest subject to Section 4.5 of this Agreement).

4.2    Borrower's Financial Advisor.

(a)Borrower has retained and engaged Carl Marks Advisory Group LLC as its financial advisor (the "Financial Advisor"), and at all times during the Forbearance Period shall continue to retain and engage the Financial Advisor, on terms and conditions acceptable to Agent in its Permitted Discretion, to advise and assist Borrower in connection with its current financial and operational performance and strategic planning (including, without limitation, the preparation and updating of projections).
(b)Borrower shall cause the Financial Advisor to provide Agent, Lenders, and the Agent-Related Persons with such information and reports, and, upon reasonable prior notice to both Borrower and Financial Consultant, to make itself available for discussions with Agent and Lenders during normal business hours, regarding Borrower and its financial conditions, businesses, assets, liabilities, prospects (including, without limitation, as to repayment of the Obligations), restructuring efforts, and strategic transactions, all as Agent and Lenders may reasonably request from time to time.  Borrower may participate in such discussions at the times designated by Agent, Lenders, and Agent-Related Persons pursuant to the immediately preceding sentence, provided that Borrower’s failure to elect to do so shall not prevent the Agent, Lenders and Agent-Related Persons from proceeding with such discussions.   
(c)All fees and expenses of the Financial Advisor shall be solely the responsibility of Borrower, and in no event shall Agent or Lenders have any liability or responsibility with respect to the Financial Advisor (including, without limitation, as to the payment of Financial Advisor's fees or expenses), and Agent and Lenders shall not have any obligation or liability to Borrower, the Financial Advisor or any other Person by reason of any acts or omissions of the Financial Advisor.

4.3    Updated Cash Flow Forecast.  On or before September 4, 2015, Borrower will deliver to Agent, in form and substance acceptable to Agent in its Permitted Discretion, a rolling, 13-week cash flow forecast (including, without limitation, projected expenses, revenues, collections, and loan balances) of Borrower and its Subsidiaries, on a consolidated and consolidating basis, prepared and approved by Borrower's management in consultation with Financial Advisor.

4.4    Restricted Payments; Affiliate Transactions.  Notwithstanding anything in the Credit Agreement or any other Loan Documents to the contrary, during the Forbearance Period, Borrower will not make or agree to make any Restricted Payment other than as set forth in the Budget.

4.5    Application of Payments and Proceeds.  Notwithstanding anything to the contrary, Borrower has requested, and Agent and the Lenders hereby agree solely during the Forbearance Period, that no payments or proceeds of Collateral received by Agent in respect of the Obligations shall be applied to the Term Loans or interest accruing thereon, or to the portion of default interest or Letter of Credit fees accruing on the Revolving Loans and Letters of Credit under Section 2.6(c) of the Credit Agreement.

4.6    Collateral Questionnaire.  Within thirty (30) days of the date hereof, Borrower will deliver to Agent a collateral questionnaire, in form and substance acceptable to Agent, verifying collateral information (including, but not limited to, information on collateral locations, owned real property, deposit accounts, and corporate structure changes), substantially in the form attached hereto as Exhibit D.

Exhibit 10.1

SECTION 5:  REPRESENTATIONS AND WARRANTIES

Each Loan Party hereby represents, warrants and covenants as follows:
5.1    Representations in the Credit Agreement and the Other Loan Documents.  Each of the representations and warranties made by or on behalf of any Loan Party to Agent or any Lender in the Credit Agreement or any of the other Loan Documents was true and correct in all material respects when made, and is, except (a) for the Existing Defaults (or the facts and circumstances resulting therein), (b) to the extent updated by amended and restated disclosure schedules provided to the Agent and certified by an officer of Borrower, or (c) to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date, true and correct in all material respects on and as of the date of this Agreement with the same full force and effect as if each of such representations and warranties had been made by such Loan Party on the date hereof and in this Agreement; provided, that all such foregoing materiality modifiers shall not apply in respect of those representations and warranties that by their terms are subject to conditions of materiality under the Credit Agreement.

5.2    Binding Effect of Documents.  This Agreement has been duly authorized, executed, and delivered to Agent and Lenders by each Loan Party, is enforceable in accordance with its terms, and is in full force and effect.

5.3    No Conflict.  The execution, delivery, and performance of this Agreement by Loan Parties will not violate any requirement of law or contractual obligation of any Loan Party where any such violation could individually or in the aggregate reasonably be expected to have a Material Adverse Effect and will not result in, or require, the creation or imposition of any Lien on any of their properties or revenues (other than Lien of Agent or Permitted Liens).

SECTION 6.  CONDITIONS TO EFFECTIVENESS OF CERTAIN PROVISIONS OF THIS AGREEMENT

Unless otherwise specified herein, the terms and provisions of this Agreement will be effective immediately upon satisfaction or existence of all of the following conditions:
(a)Agent's receipt of this Agreement, duly authorized, executed and delivered by all Lenders and Borrower;
(b)Borrower's reimbursement of all costs and expenses of Agent and Lenders reimbursable pursuant to the terms of the Loan Documents, incurred and invoiced on or prior to the closing date of this Agreement;
(c)Agent's receipt from Parent of a duly executed and delivered Consent and Reaffirmation in the form as attached as Exhibit B;
(d)Agent's receipt from each Loan Party of evidence of their respective corporate authority to execute, deliver, and perform their respective obligations under this Agreement and all other agreements and documents executed in connection therewith; and
(e)No Default or Event of Default (other than the Existing Defaults) shall have occurred and be continuing.

SECTION 7.  MISCELLANEOUS

7.1    Continuing Effect of Loan Documents.  Except as modified pursuant hereto, no other changes or modifications to the Credit Agreement or any other Loan Document are intended or implied by this Agreement and in all other respects the Credit Agreement and the other Loan Documents hereby are ratified, restated, and confirmed by all parties hereto as of the date hereof.  To the extent of any conflict between the terms of this Agreement, the Credit Agreement, and the other Loan Documents, the terms of this Agreement will govern and control.  The Credit Agreement and this Agreement will be read and construed as one agreement.

7.2    Costs and Expenses.  Borrower reaffirms and acknowledges its obligations to pay Lender Group Expenses pursuant to Section 2.5 of the Credit Agreement, including, without limitation, all fees, costs, and expenses incurred by Agent in connection with the preparation, negotiation, execution, delivery, or enforcement of this Agreement.

7.3    Further Assurances.  At Borrower's expense, the parties hereto will execute and deliver such additional documents and take such further action as may be necessary or reasonably requested by Agent to effectuate the provisions and purposes of this Agreement.

7.4    Successors and Assigns; No Third-Party Beneficiaries.  This Agreement will be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.  No Person other than the parties hereto, and in the case of Section 7.6 and Section 7.7 hereof, the Releasees, shall have any rights hereunder or be entitled to rely on this Agreement and all third-party beneficiary rights (other than the rights of the Releasees under Section 7.6 and Section 7.7 are hereby expressly disclaimed.

Exhibit 10.1

7.5    Survival of Representations, Warranties and Covenants.  All representations, warranties, covenants, and releases of Loan Parties made in this Agreement or any other document furnished in connection with this Agreement will survive the execution and delivery of this Agreement and the Forbearance Period, and no investigation by Agent or any Lender, or any closing, will affect the representations and warranties or the right of Agent and Lenders to rely upon them.

7.6    Release.

(a)In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Loan Party, on behalf of itself and its successors and assigns, and its present and former members, managers, shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents, legal representatives, and other representatives (Loan Parties and all such other Persons being hereinafter referred to collectively as the "Releasing Parties" and individually as a "Releasing Party"), hereby absolutely, unconditionally, and irrevocably releases, remises, and forever discharges Agent, each Lender, and each of their respective successors and assigns, and their respective present and former shareholders, members, managers, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents, legal representatives, and other representatives (Agent, Lenders, and all such other Persons being hereinafter referred to collectively as the "Releasees" and individually as a "Releasee"), of and from any and all demands, actions, causes of action, suits, damages, and any and all other claims, counterclaims, defenses, rights of set‐off, demands, and liabilities whatsoever (individually, a "Claim" and collectively, "Claims") of every kind and nature, known or unknown, suspected or unsuspected, at law or in equity, which any Releasing Party or any of its successors, assigns, or other legal representatives may now or hereafter own, hold, have, or claim to have against the Releasees or any of them for, upon, or by reason of any circumstance, action, cause, or thing whatsoever which arises at any time on or prior to the date of this Agreement for or on account of, in relation to, or in any way in connection with this Agreement, the Credit Agreement, any of the other Loan Documents, or any of the transactions hereunder or thereunder.
(b)Each Loan Party understands, acknowledges, and agrees that the release set forth above may be pleaded as a full and complete defense to any Claim and may be used as a basis for an injunction against any action, suit, or other proceeding which may be instituted, prosecuted, or attempted in breach of the provisions of such release.
(c)Each Loan Party agrees that no fact, event, circumstance, evidence, or transaction which could now be asserted or which may hereafter be discovered will affect in any manner the final, absolute, and unconditional nature of the release set forth above.

7.7    Covenant Not to Sue.  Each Loan Party hereby absolutely, unconditionally and irrevocably covenants and agrees with and in favor of each Releasee that it will not sue (at law, in equity, in any regulatory proceeding, or otherwise) any Releasee on the basis of any Claim released, remised, and discharged by any Releasing Party pursuant to Section 7.6 above.  If any Releasing Party violates the foregoing covenant, each Loan Party, for itself and its successors and assigns, and its present and former members, managers, shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents, legal representatives, and other representatives, agrees to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all attorneys' fees and costs incurred by any Releasee as a result of such violation.

7.8    Severability.  Any provision of this Agreement held by a court of competent jurisdiction to be invalid or unenforceable will not impair or invalidate the remainder of this Agreement.

7.9    Reviewed by Attorneys.  Each Loan Party represents and warrants to Agent and Lenders that it (a) understands fully the terms of this Agreement and the consequences of the execution and delivery of this Agreement; (b) has been afforded an opportunity to discuss this Agreement with, and have this Agreement reviewed by, such attorneys and other persons as any Loan Party may wish; and (c) has entered into this Agreement and executed and delivered all documents in connection herewith of its own free will and accord and without threat, duress, or other coercion of any kind by any Person.  The parties hereto acknowledge and agree that neither this Agreement nor the other documents executed pursuant hereto will be construed more favorably in favor of one than the other based upon which party drafted the same, it being acknowledged that all parties hereto contributed substantially to the negotiation and preparation of this Agreement and the other documents executed pursuant hereto or in connection herewith.

7.10    Disgorgement.  If Agent or any Lender is, for any reason, compelled by a court or other tribunal of competent jurisdiction to surrender or disgorge any payment, interest, or other consideration described hereunder to any person because the same is determined to be void or voidable as a preference, fraudulent conveyance, impermissible set-off or for any other reason, such indebtedness or part thereof intended to be satisfied by virtue of such payment, interest, or other consideration will be revived and continue as if such payment, interest, or other consideration had not been received by Agent or such Lender, and Loan Parties will be liable to, and will indemnify, defend, and hold Agent or such Lender harmless for, the amount of such payment or interest surrendered or disgorged.  The provisions of this Section will survive repayment of the Obligations or any termination of the Credit Agreement or any other Loan Document.

Exhibit 10.1

7.11    Tolling of Statute of Limitations.  Each and every statute of limitations or other applicable law, rule, or regulation governing the time by which Agent must commence legal proceedings or otherwise take any action against any Loan Party with respect to any breach or default that exists on or prior to the expiration or termination of the Forbearance Period and arises under or in respect of the Credit Agreement or any other Loan Document shall be tolled during the Forbearance Period.  Each Loan Party agrees, to the fullest extent permitted by law, not to include such period of time as a defense (whether equitable or legal) to any legal proceeding or other action by Agent in the exercise of its rights or remedies referred to in the immediately preceding sentence.

7.12    Relationship.  Each Loan Party agrees that the relationship between it, on one hand, and Agent and Lenders, on the other hand, is that of creditor and debtor and not that of partners or joint venturers.  This Agreement does not constitute a partnership agreement or any other association among the parties.  Each Loan Party acknowledges that Agent and each Lender has acted at all times only as a creditor to it within the normal and usual scope of the activities normally undertaken by a creditor and in no event has Agent or any Lender attempted to exercise any control over it or its business or affairs.  Each Loan Party further acknowledges that Agent and each Lender has not taken or failed to take any action under or in connection with its respective rights under the Credit Agreement or any of the other Loan Documents that in any way, or to any extent, has interfered with or adversely affected its ownership of Collateral.

7.13    No Effect on Rights Under Subordination and Intercreditor Agreements.  Agent's and Lenders' agreement to forbear pursuant to Section 3.2 of this Agreement shall not extend to any of their respective rights or remedies under any subordination, intercreditor, or similar agreement to which Agent or any Lender is party, it being understood that the Existing Defaults shall at all times constitute Events of Default for purposes of any and all such agreements notwithstanding such agreement to forbear in Section 3.2 of this Agreement, and Agent and Lenders shall at all times be permitted to enforce all rights and remedies in respect thereof (including, without limitation, blocking payments to any holders of subordinated obligations in accordance with the terms of such agreements).

7.14    Governing Law: Consent to Jurisdiction and Venue.  EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THE CREDIT AGREEMENT AND ANY OF THE OTHER LOAN DOCUMENTS, THIS AGREEMENT, THE CREDIT AGREEMENT, AND THE OTHER LOAN DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER WILL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF ILLINOIS, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.  EACH LOAN PARTY HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED IN COOK COUNTY, ILLINOIS WILL HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN IT AND AGENT OR ANY LENDER PERTAINING TO THIS AGREEMENT OR THE CREDIT AGREEMENT OR THE OTHER LOAN DOCUMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE CREDIT AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS; AND FURTHER PROVIDED, THAT NOTHING IN THIS AGREEMENT WILL BE DEEMED OR OPERATE TO PRECLUDE AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF AGENT.  EACH LOAN PARTY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH LOAN PARTY HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE, OR FORUM NON CONVENIENS AND HEREBY CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.  EACH LOAN PARTY HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO IT AT THE ADDRESS SET FORTH IN THE CREDIT AGREEMENT AND THAT SERVICE SO MADE WILL BE DEEMED COMPLETED UPON THE EARLIER OF ITS ACTUAL RECEIPT THEREOF OR THREE (3) DAYS AFTER THE SAME HAS BEEN POSTED.

7.15    Mutual Waiver of Jury Trial.  THE PARTIES HERETO WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN AGENT OR ANY LENDER AND ANY LOAN PARTY ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT OR THE CREDIT AGREEMENT OR THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS RELATED THERETO.

7.16    Counterparts.  This Agreement may be executed and delivered via facsimile or email (in .pdf format) transmission with the same force and effect as if an original were executed, and may be executed in any number of counterparts, but all of such counterparts will together constitute but one and the same agreement.

Exhibit 10.1

IN WITNESS WHEREOF, this Agreement is executed and delivered as of the day and year first above written.

	
			
	 
	 
	ESSEX CRANE RENTAL CORP.,

	 
	 
	As Borrower

	 
	 
	 

	 
	By:
	/s/ Kory Glen

	 
	Name:
	Kory Glen

	 
	Title:
	Chief Financial Officer

	 
	 
	 

	 
	 
	WELLS FARGO CAPITAL FINANCE, LLC,

	 
	 
	As Agent and Lender

	 
	 
	 

	 
	By:
	/s/ Laura Nickas

	 
	Name:
	Laura Nickas

	 
	Title:
	Authorized Signatory

	 
	 
	 

	 
	 
	PNC BANK, NATIONAL ASSOCIATION,

	 
	 
	As a Lender

	 
	 
	 

	 
	By:
	/s/ James Simpson

	 
	Name:
	James Simpson

	 
	Title:
	Vice President

	 
	 
	 

	 
	 
	ALOSTAR BANK OF COMMERCE,

	 
	 
	As a Lender

	 
	 
	 

	 
	By:
	/s/ Daryn Veney

	 
	Name:
	Daryn Veney

	 
	Title:
	Vice President

	 
	 
	 

	 
	 
	KAYNE SENIOR CREDIT FUND (QP), L.P.,

	 
	 
	As a Lender

	 
	 
	 

	 
	By:
	/s/ Albert M. Ricchio

	 
	Name:
	Albert M. Ricchio

	 
	Title:
	Managing Partner

	 
	 
	 

	 
	 
	KAYNE SENIOR CREDIT FUND, L.P.,

	 
	 
	As a Lender

	 
	 
	 

	 
	By:
	/s/ Albert M. Ricchio

	 
	Name:
	Albert M. Ricchio

	 
	Title:
	Managing Partner

	 
	 
	 

Exhibit 10.1

	
			
	 
	 
	1492 CAPITAL, LLC,

	 
	 
	As a Lender

	 
	 
	 

	 
	By:
	/s/ Thomas A. Shanklin

	 
	Name:
	Thomas A. Shanklin

	 
	Title:
	Authorized Signatory

	 
	 
	 

	 
	 
	MEDLEY CAPITAL CORPORATION,

	 
	 
	As a Lender

	 
	 
	 

	 
	By:
	/s/ Richard T. Allorto

	 
	Name:
	Richard T. Allorto

	 
	Title:
	Chief Financial Officer

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