Document:

wd_EX_10_3

		
			Exhibit 10.3
		

		
			 
		

		
			TENTH AMENDMENT TO 
		

		
			AMENDED AND RESTATED $650,000,000 WAREHOUSING CREDIT
		

		
			AND SECURITY AGREEMENT 
		

		
			among
		

		
			WALKER & DUNLOP, LLC
		

		
			as Borrower,
		

		
			WALKER & DUNLOP, INC.
		

		
			as  Parent,
		

		
			and
		

		
			THE LENDERS PARTY HERETO,
		

		
			PNC BANK, NATIONAL ASSOCIATION,
		

		
			as Administrative Agent
		

		
			and
		

		
			PNC CAPITAL MARKETS LLC,
		

		
			as Lead Arranger and Sole Bookrunner
		

		
			Effective as of March 27, 2017
		

		
			______________________________________________________
		

		
			 
		

		
			 
		

		
			

		 

 

		

		
			 
		

		
			TENTH AMENDMENT TO AMENDED AND RESTATED 
WAREHOUSING CREDIT AND SECURITY AGREEMENT
		

		
			THIS TENTH AMENDMENT TO AMENDED AND RESTATED WAREHOUSING CREDIT AND SECURITY AGREEMENT (this “Tenth Amendment”) is made effective as of the 27th day of March, 2017, by and among WALKER & DUNLOP, LLC, a Delaware limited liability company (“Borrower”), WALKER & DUNLOP, INC., a Maryland corporation (“Parent”), the lenders party to the Credit Facility Agreement defined below (the “Lenders”) and PNC BANK, NATIONAL ASSOCIATION, in its capacity as Administrative Agent for the Lenders under the Credit Facility Agreement (hereinafter referred to in such capacity as the “Administrative Agent”).
		

		
			R E C I T A L S
		

		
			WHEREAS, the Lenders and Borrower are parties to that certain Amended and Restated Warehousing Credit and Security Agreement, dated as of June 25, 2013, by and among Borrower, Parent, the Lenders and the Administrative Agent (the “Original Credit Facility Agreement”), as amended by that certain First Amendment to Amended and Restated Warehousing Credit and Security Agreement, dated as of December 20, 2013 (the “First Amendment”), that certain Second Amendment to Amended and Restated Warehousing Credit and Security Agreement, effective as of June 17, 2014 (the “Second Amendment”), that certain Third Amendment to Amended and Restated Warehousing Credit and Security Agreement, effective as of August 26, 2014 (the “Third Amendment”), that certain Fourth Amendment to Amended and Restated Warehousing Credit and Security Agreement, effective as of June 17, 2015 (the “Fourth Amendment”), that certain Fifth Amendment to Amended and Restated Warehousing Credit and Security Agreement, effective as of October 26, 2015 (the “Fifth Amendment”),  that certain Sixth Amendment to Amended and Restated Warehousing Credit and Security Agreement, effective as of December 24, 2015 (the “Sixth Amendment”), that certain Seventh Amendment to Amended and Restated Warehousing Credit and Security Agreement, effective as of February 12, 2016 (the “Seventh Amendment”), that certain Eighth Amendment to Amended and Restated Warehousing Credit and Security Agreement, effective as of June 16, 2016 (the “Eighth Amendment”), and that certain Ninth Amendment to Amended and Restated Warehousing Credit and Security Agreement, effective as of December 12, 2016 (the “Ninth Amendment” and the Original Credit Facility Agreement, as amended by the First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth Amendment,  Sixth Amendment, Seventh Amendment,  Eighth Amendment and Ninth Amendment, is herein referred to as the “Credit Facility Agreement”), whereby upon the satisfaction of certain terms and conditions set forth therein, the Lenders agreed to make Warehousing Advances from time to time, up to the Warehousing Credit Limit (each such term as defined in the Credit Facility Agreement).
		

		
			WHEREAS, Borrower, the Administrative Agent and the Lenders have agreed, pursuant to the terms hereof, to modify certain terms of the Credit Facility Agreement as set forth in this Tenth Amendment.
		

		
			 
		

		
			 
		

		
			

		 

		

			 

		

 

		

			 

		

		

		
			NOW, THEREFORE, for and in consideration of the premises, the mutual entry of this Tenth Amendment by the parties hereto and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereby agree as follows:
		

		
			Section 1.       Recitals.  The Recitals are hereby incorporated into this Tenth Amendment as a substantive part hereof.
		

		
			Section 2.      Definitions.  Terms used herein and not otherwise defined shall have the meanings set forth in the Credit Facility Agreement. 
		

		
			Section 3.      Amendments to Credit Facility Agreement.  The Credit Facility Agreement is hereby amended as follows:
		

		
			(a)       From and after the date of this Tenth Amendment, Schedule I to the Credit Facility Agreement shall be deleted in its entirety and replaced with the new Schedule I attached hereto and incorporated herein by reference.  
		

		
			Section 4.      Ratification, No Novation, Effect of Modifications.  Except as may be amended or modified hereby, the terms of the Credit Facility Agreement are hereby ratified, affirmed and confirmed and shall otherwise remain in full force and effect.  Nothing in this Tenth Amendment shall be construed to extinguish, release, or discharge or constitute, create or effect a novation of, or an agreement to extinguish, release or discharge, any of the obligations, indebtedness and liabilities of Borrower or any other party under the provisions of the Credit Facility Agreement or any of the other Loan Documents, unless specifically herein provided.
		

		
			Section 5.     Amendments.  This Tenth Amendment may be amended or supplemented by and only by an instrument executed and delivered by each party hereto.
		

		
			Section 6.     Waiver.  The Lenders shall not be deemed to have waived the exercise of any right which they hold under the Credit Facility Agreement unless such waiver is made expressly and in writing (and no delay or omission by any Lender in exercising any such right shall be deemed a waiver of its future exercise).  No such waiver made as to any instance involving the exercise of any such right shall be deemed a waiver as to any other such instance, or any other such right.  Without limiting the operation and effect of the foregoing provisions hereof, no act done or omitted by any Lender pursuant to the powers and rights granted to it hereunder shall be deemed a waiver by any Lender of any of its rights and remedies under any of the provisions of the Credit Facility Agreement, and this Tenth Amendment is made and accepted without prejudice to any of such rights and remedies. 
		

		
			Section 7.       Governing Law.  This Tenth Amendment shall be given effect and construed by application of the law of the Commonwealth of Pennsylvania.
		

		
			Section 8.     Headings.  The headings of the sections, subsections, paragraphs and subparagraphs hereof are provided herein for and only for convenience of reference, and shall not be considered in construing their contents.
		

		
			Section 9.      Severability.  No determination by any court, governmental body or otherwise that any provision of this Tenth Amendment or any amendment hereof is invalid or 
		

		
			
		

		
			

		 

		

			2

		

 

		

		
			unenforceable in any instance shall affect the validity or enforceability of (i) any other such provision or (ii) such provision in any circumstance not controlled by such determination.  Each such provision shall be valid and enforceable to the fullest extent allowed by, and shall be construed wherever possible as being consistent with, applicable law.
		

		
			Section 10.     Binding Effect.  This Tenth Amendment shall be binding upon and inure to the benefit of the Administrative Agent, the Borrower, the Parent, the Lenders, and their respective permitted successors and assigns.
		

		
			Section 11.    Counterparts.  This Tenth Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same instrument.
		

		
			 
		

		
			 
		

		
			 
		

		
			[Signature Page Follows]
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

			3

		

 

		

			 

		

		

		
			IN WITNESS WHEREOF, each of the parties hereto have executed and delivered this Tenth Amendment under their respective seals as of the day and year first written above.
		

			
					
						 

					
					
						WALKER & DUNLOP, LLC, as Borrower

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stephen P. Theobald

				
	
					
						 

					
					
						Name:

					
					
						Stephen P. Theobald

				
	
					
						 

					
					
						Title:

					
					
						Executive Vice President, Chief Financial Officer & Treasurer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						WALKER & DUNLOP, INC., as Parent

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Stephen P. Theobald

				
	
					
						 

					
					
						Name: 

					
					
						Stephen P. Theobald

				
	
					
						 

					
					
						Title:

					
					
						Executive Vice President, Chief Financial Officer & Treasurer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent and Lender

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Terri Wyda

				
	
					
						 

					
					
						Name: 

					
					
						Terri Wyda

				
	
					
						 

					
					
						Title: 

					
					
						Senior Vice President

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						WELLS FARGO BANK, NATIONAL ASSOCIATION, as Lender

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Ross Painter

				
	
					
						 

					
					
						Name:  

					
					
						Ross Painter

				
	
					
						 

					
					
						Title:  

					
					
						Vice President

				

		
			 
		

		
			 
		

		
			

		 

		

			Signature Page  -  Tenth Amendment to Amended and Restated Warehousing Credit and Security Agreement

		

 

		

			 

		

		

		
			Schedule I
		

		
			List of Lenders and Lenders’ Warehousing Commitments
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						Lender

					
					
						    

					
					
						Warehousing Commitment

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						PNC Bank, National Association

					
					
						 

					
					
						$450,060,000.00 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Wells Fargo Bank, National Association

					
					
						 

					
					
						$199,940,000.00 

				

		
			 
		

		 

		

			Schedule I-1Exhibit

Exhibit 10.3

	
				
	(Aegion Logo)

	Policy #:
	P-HR-02

	Effective Date:
	March 15, 2017

	Subject:
	Severance Policy 
	Maintained By:
	SVP of Human Resources

	Approved By:
	Compensation Committee

	Applies to:  
	Aegion and/or its Subsidiaries
	Supersedes:
	March 1, 2017

Scope

This Severance Policy (the “Policy”) is applicable to Aegion Corporation and its subsidiaries (together the “Company”).

Purpose

This Policy is designed to provide a competitive package to aid employees affected by a position elimination or reduction in force during their transition period. The Plan creates a tiered approach that considers tenure and position level in determining employee benefits.

Policy

		
	A.
	Eligibility

This Policy applies to non-union employees of the Company who are actively employed, have completed a minimum of six (6) months’ continuous service time (or two (2) years’ continuous service time for hourly field/production employees), are in good standing with the Company and whose employment is terminated involuntarily as a result of a reduction in force or position elimination, where a comparable position is not available. This Policy does not apply in the event of termination for cause or termination due to a violation of the Company’s Code of Conduct.

International employees generally are eligible for benefits pursuant to provincial or country requirement.  Should none exist, this Policy will apply.  Employees subject to an employment agreement that sets forth severance benefits different than those contained in this Policy will not be eligible for payments under this plan.

		
	B.
	Summary of Benefits

Severance benefits due a separated employee will be determined by position and uninterrupted tenure, as outlined below, and will be provided pursuant to the execution of any requested actions, including, but not limited to: timely return of an unaltered and signed release agreement, return of all company property, and completion of any position-related tasks specific to the Company. All severance payments will be processed as extended payroll, with applicable taxes and deductions, through the term of the applicable severance period.

U.S. employees will be eligible for COBRA benefits immediately upon termination.  During the severance period, U.S. employees receiving severance payments under this plan and who have fulfilled the obligations described above will be eligible to exercise his/her COBRA benefits 

INTERNAL USE ONLY
Page 1 of 4            This material is protected by copyright.  © Aegion Corporation 2017              3/15/17

	
				
	

	Policy #:
	P-HR-02

	Effective Date:
	March 15, 2017

	Subject:
	Severance Policy 
	Maintained By:
	SVP of Human Resources

	Approved By:
	Compensation Committee

	Applies to:  
	Aegion and/or its Subsidiaries
	Supersedes:
	March 1, 2017

while paying only his/her normal employee contribution via payroll deduction from the severance payments.    

For Canadian employees, group supplemental health and welfare coverage will be extended through the term of severance payments at the normal employee contribution rate taken via payroll deduction.

Severance periods are based on employee classification, as set forth below:

		
	•
	Tier 1 Employees.  Employees classified as Tier 1 will receive their base salary for a period of eighteen (18) months after they have satisfied all of their obligations under this Policy.  In addition, they are eligible for up to $15,000 in outplacement services, provided by a vendor of the Company’s choosing. Payments for these services will be paid directly by the Company.

		
	•
	Tier 1.5 Employees.  Employees classified as Tier 1.5 will receive their base salary for a period of fifteen (15) months after they have satisfied all of their obligations under this Policy.  In addition, they are eligible for up to $15,000 in outplacement services, provided by a vendor of the Company’s choosing. Payments for these services will be paid directly by the Company.

		
	•
	Tier 2.5 Employees.  Employees classified as Tier 2.5 will receive their base salary for a period of twelve (12) months after they have satisfied all of their obligations under this Policy.  In addition, they are eligible for up to $10,000 in outplacement services, provided by a vendor of the Company’s choosing. Payments for these services will be paid directly by the Company.

		
	•
	Tiers 3.0-3.5 Employees.  Employees classified as Tiers 3.0-3.5 will receive their base salary for a period of six (6) months after they have satisfied all of their obligations under this Policy.  Notwithstanding the foregoing, these employees will continue to receive base salary for the greater of (a) a period of six (6) months; or (b) a period calculated as twelve (12) weeks, plus two (2) additional weeks for each full year of continuous service time with the Company, not to exceed forty-two (42) weeks of base salary.  In addition, they are eligible for up to $7,500 in outplacement services, provided by a vendor of the Company’s choosing. Payments for these services will be paid directly by the Company.

		
	•
	Vice Presidents who are not Tiers 1 to 3.5.  Vice presidents who are not classified as Tiers 1 - 3.5 will receive their base salary after they have satisfied all of their obligations under this Policy for a period calculated as follows: twelve (12) weeks, plus two (2) additional weeks for each full year of continuous  service time with the Company. These employees will continue to receive base salary for a period of no less than twelve (12) and no more than forty-two (42) weeks.   In addition, they are eligible for up to $7,500 in outplacement services, provided by a vendor of the Company’s choosing. Payments for these services will be paid directly by the Company.

INTERNAL USE ONLY
Page 2 of 4            This material is protected by copyright.  © Aegion Corporation 2017              3/15/17

	
				
	(Aegion Logo)

	Policy #:
	P-HR-02

	Effective Date:
	March 15, 2017

	Subject:
	Severance Policy
	Maintained By:
	SVP of Human Resources

	Approved By:
	Compensation Committee

	Applies to:
	Aegion and/or its Subsidiaries
	Supersedes:
	March 1, 2017

		
	•
	Directors who are not included in any of above classifications.  Employees who are in director-level positions will receive their base salary payments for a period calculated as follows: six (6) weeks, plus two (2) additional weeks for each full year of continuous service time with the Company.  Employees in these positions will receive no less than six (6) and no more than thirty-six (36) weeks of base salary.  In addition, these employees are eligible for up to $5,000 in outplacement services, provided by a vendor of the Company’s choosing. Payments for these services will be paid directly by the Company.

		
	•
	Salaried exempt who are not included in any of above classifications. Salaried exempt employees (“Exempt Employees”) will receive their base salary payments for a period calculated as follows: two (2) weeks, plus one (1) additional week for each full year of continuous service time with the Company. Exempt Employees will receive no less than two (2) and no more than seventeen (17) weeks of base salary.  In addition, Exempt Employees are eligible for up to $2,000 in outplacement services, provided by a vendor of the Company’s choosing.

		
	•
	Staff non-exempt. Staff non-exempt employees (“Non-exempt employees”) will receive their base salary payments for a period calculated as follows: one (1) week of salary (based on forty (40) hours per week), plus one (1) additional week (based on forty (40) hours per week) for each full year of continuous service time with the Company. Non-exempt employees will receive no less than two (2) and no more than fifteen (15) weeks of base salary (based on forty (40) hours per week).

		
	•
	Field/Production hourly. Hourly field/production employees (“Field Employees”) will receive severance payments based on continuous service time with the Company.  The severance period will be calculated as follows, based on forty (40) hours per week:

		
	◦
	Completed at least two (2) to five (5) years - Two (2) weeks of base pay severance

		
	◦
	Completed at least five (5) to ten (10) years - Three (3) weeks of base pay severance

		
	◦
	Ten (10) years or more - Four (4) weeks of base pay severance

		
	C.
	Changes to Policy

This Policy is a statement of intent and is not a contract.  It is not a guarantee of employment and employment with the Company remains “at will.”  This Policy may be modified, suspended or terminated at any time and all payments are at the discretion of the Compensation Committee of the Board of Directors of Aegion Corporation.  This Policy may be changed during the year without any obligation to pay for the elapsed part of the year in the manner described in the Policy.  The decisions of the Chief Administrative Officer, the Senior Vice President of Human Resources, the Board of Directors and/or the Compensation Committee in administering the Policy are final and binding on all persons.

INTERNAL USE ONLY
Page 3 of 4            This material is protected by copyright.  © Aegion Corporation 2017              3/15/17

	
				
	

	Policy #:
	P-HR-02

	Effective Date:
	March 15, 2017

	Subject:
	Severance Policy 
	Maintained By:
	SVP of Human Resources

	Approved By:
	Compensation Committee

	Applies to:  
	Aegion and/or its Subsidiaries
	Supersedes:
	March 1, 2017

Compliance

Aegion employees are expected to comply fully with the letter and the spirit of this Policy. Failure to comply with this Policy shall be considered grounds for disciplinary action up to and including termination of employment.  Fraud or theft will be pursued and prosecuted to the full extent the law allows.  If you have any questions regarding the compliance to this Policy, you should either contact the Policy maintainer or the Company’s Human Resources Department.

INTERNAL USE ONLY
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