Document:

exh10_11.htm

    Exhbit 10.11

      Control
Agreement Regarding Limited Liability Company Interests

      

                 This
Control Agreement Regarding Limited Liability Company Interests (as amended,
modified, restated and/or supplemented from time to time, this "Agreement"), dated as
of March 28, 2008, among GSE Systems, Inc., a Delaware corporation (the "Pledgor"), Bank of
America, N.A., a national banking association (the "Pledgee"), and GSE
Services Company, LLC, a Delaware limited liability company, as the issuer of
the Limited Liability Company Interests (as defined below) (the "Issuer").

      

      W I T N E
S S E T H :

      

                 WHEREAS,
the Pledgor, certain subsidiaries of the Pledgor and the Pledgee have entered
into a Pledge Agreement, of even date herewith (as amended, modified, restated
and/or supplemented from time to time, the "Pledge Agreement"),
under which, among other things, in order to secure the payment of the Secured
Obligations (as defined in the Pledge Agreement), the Pledgor has or will pledge
to the Pledgee, and grant a security interest in favor of the Pledgee in, all of
the right, title and interest of the Pledgor in and to any and all equity
interests (including, without limitation, limited liability company interests
and membership interests) from time to time issued by the Issuer (collectively,
the "Limited Liability
Company Interests"), whether now existing or hereafter from time to time
acquired by the Pledgor (with all of such Limited Liability Company Interests
being herein collectively called the "Issuer Pledged
Interests"); and

      

      WHEREAS, the Pledgor desires the Issuer
to enter into this Agreement in order to perfect the security interest of the
Pledgee under the Pledge Agreement in the Issuer Pledged  Interests,
to vest in the Pledgee control of the Issuer Pledge Interests and to provide for
the rights of the parties under this Agreement;

      

      NOW THEREFORE, in consideration of the
premises and the mutual promises and agreements contained herein, and for other
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto hereby agree as follows:

      

      1.           The
Pledgor hereby irrevocably authorizes and directs the Issuer, and the Issuer
hereby agrees, to comply with any and all instructions and orders originated by
the Pledgee (and its successors and assigns) regarding any and all of the Issuer
Pledged Interests without the further consent by the registered owner (including
the Pledgor), and, following its receipt of a notice from the Pledgee stating
that the Pledgee is exercising exclusive control of the Issuer Pledged Interests
in accordance with the Pledge Agreement, not to comply with any instructions or
orders regarding any or all of the Issuer Pledged Interests originated by any
person or entity other than the Pledgee (and its successors and assigns) or a
court of competent jurisdiction.

      

      2.           The
Issuer hereby certifies that (i) no notice of any security interest, lien or
other encumbrance or claim affecting the Issuer Pledged Interests (other than
the security interest of the Pledgee) has been received by it, and (ii) the
security interest of the Pledgee in the Issuer Pledged Interests has been
registered in the books and records of the Issuer.

      

      3.           The
Issuer hereby represents and warrants that the pledge by the Pledgor of, and the
granting by the Pledgor of a security interest in, the Issuer Pledged Interests
to the Pledgee, does not violate any agreement governing the Issuer or the
Issuer Pledged Interests.

      

      4.           All
notices, statements of accounts, reports, prospectuses, financial statements and
other communications to be sent to the Pledgor by the Issuer in respect of the
Issuer will also be sent to the Pledgee at the following address:

      

      Bank of
America, N.A.

      100 South
Charles Street, 2nd Floor

      Baltimore,
Maryland 21201

      Attention:

      Facsimile:

      

      5.           Following
its receipt of a notice from the Pledgee stating that the Pledgee is exercising
exclusive control of the Issuer Pledged Interests (pursuant to the notice
requirements in Section 1 above) and until the Pledgee shall have delivered
written notice to the Issuer that all of the Obligations have been paid in full
and this Agreement is terminated, the Issuer will send any and all redemptions,
distributions, interest or other payments in respect of the Issuer Pledged
Interests from the Issuer for the account of the Pledgee only by wire transfers
to such account as the Pledgee shall instruct.

      

      6.           Except
as expressly provided otherwise in Sections 4 and 5, all notices, instructions,
orders and communications hereunder shall be sent or delivered by mail,
facsimile or overnight courier service and all such notices and communications
shall, when mailed, faxed or sent by overnight courier, be effective when
deposited in the mails or delivered to overnight courier, prepaid and properly
addressed for delivery on such or the next Business Day, or sent by facsimile,
except that notices and communications to the Pledgee or the Issuer shall not be
effective until received.  All notices and other communications shall
be in writing and addressed as follows:

      

      (a) if to the Pledgor, at:

      

      GSE
Systems, Inc.

      Attn:
Jeffery G. Hough

      7133
Rutherford Road, Suite 200

      Baltimore,
Maryland 21244

      Facsimile:
(410) 277-5287

      

      With a
copy to:

      

      Kalbian
Hagerty LLP

      Attn:
James R. Hagerty, Esq.

      888 17th
Street, NW, Suite 1000

      Washington,
D.C. 20006

      Facsimile:
(202) 223-6625

      

      (b) if to the Pledgee, at the address
given in Section 4 hereof;

      

      (c) if to the Issuer, at:

      

      GSE
Services Company, LLC

      Attn:
Jeffery G. Hough 7133

      Rutherford
Road, Suite 200

      Baltimore,
Maryland 21244

      Facsimile:
(410) 277-5287

      

      or at
such other address as shall have been furnished in writing by any party
described above to the party required to give notice hereunder.  As
used in this Section 6, "Business Day" means any day other than a Saturday,
Sunday, or other day in which banks in Maryland are authorized to remain
closed.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      7.           This
Agreement shall be binding upon the successors and assigns of the Pledgor and
the Issuer and shall inure to the benefit of and be enforceable by the Pledgee
and its successors and assigns.  This Agreement may be executed in any
number of counterparts, each of which shall be an original, but all of which
shall constitute one instrument.  In the event that any provision of
this Agreement shall prove to be invalid or unenforceable, such provision shall
be deemed to be severable from the other provisions of this Agreement which
shall remain binding on all parties hereto.  None of the terms and
conditions of this Agreement may be changed, waived, modified or varied in any
manner whatsoever except in writing signed by the Pledgee, the Issuer and the
Pledgor.

      

      8.           This
Agreement shall be governed by and construed in accordance with the laws of the
State of Maryland, without regard to its principles of conflict of
laws.

      

      IN WITNESS WHEREOF, the Pledgor, the
Pledgee and the Issuer have caused this Agreement to be executed by their duly
elected officers duly authorized as of the date first above written, intending
to create an instrument executed under seal.

      

      
        	
                "PLEDGEE"

                 

                BANK
      OF AMERICA, N.A.

                 

                 

                By:           /s/ Kevin
      Mahon                                                      

                Kevin
      Mahon

                Senior
      Vice President

                 

              	
                "PLEDGOR"

                 

                GSE
      SYSTEMS, INC., a Delaware corporation

                 

                 

                By:           /s/ Jeffery
      Hough                                                      (Seal)

                Jeffery
      Hough

                Chief
      Financial Officer

              
	 
      	 
      
	 
      	
                "ISSUER"

                 

                 

                GSE
      SERVICES COMPANY LLC, a Delaware limited liability company

                 

                 

                By:           /s/ Jeffery
      Hough                                                       (Seal)

                Jeffery
      Hough

                Chief
      Financial Officerexh10_1.htm

    Exhibit
10.1

     

    FOURTH
AMENDMENT

    TO

    LOAN
AND SECURITY AGREEMENT

     

    THIS FOURTH AMENDMENT to Loan and
Security Agreement (this “Amendment”) is entered into this 28th day of March,
2008, by and between Silicon Valley Bank (“Bank”) and XPLORE TECHNOLOGIES
CORPORATION OF AMERICA, a Delaware corporation (“Borrower”) whose address is
14000 Summit Drive, Suite 900, Austin, Texas 78728.

     

    Recitals

     

    A.           Bank
and Borrower have entered into that certain Loan and Security Agreement dated as
of September 15, 2005, as amended by that certain First Amendment to Loan and
Security Agreement by and between Bank and Borrower dated as of November 28,
2005, that certain Letter amending Loan and Security Agreement by and between
Bank and Borrower dated as of March 30, 2006, that certain Second Amendment to
Loan and Security Agreement by and between Bank and Borrower dated as of May 15,
2006 and that certain Third Amendment to Loan and Security Agreement by and
between Bank and Borrower dated as of February 28, 2007 (as the same may from
time to time be further amended, modified, supplemented or restated, the “Loan
Agreement”).

     

    B.           Bank
has extended credit to Borrower for the purposes permitted in the Loan
Agreement.

     

    C.           Borrower
has requested that Bank amend the Loan Agreement to (i) extend the maturity
date, (ii) add a requirement that Borrower receive Subordinated Debt proceeds,
and (iii) make certain other revisions to the Loan Agreement as more fully set
forth herein.

     

    D.           Bank
has agreed to so amend certain provisions of the Loan Agreement, but only to the
extent, in accordance with the terms, subject to the conditions and in reliance
upon the representations and warranties set forth below.

     

    Agreement

     

    Now,
Therefore, in
consideration of the foregoing recitals and other good and valuable
consideration, the receipt and adequacy of which is hereby acknowledged, and
intending to be legally bound, the parties hereto agree as follows:

     

    1.           Definitions.  Capitalized
terms used but not defined in this Amendment shall have the meanings given to
them in the Loan Agreement.

     

    2.           Amendments
to Loan Agreement.

     

    2.1           Schedule Section 3 (FEES
(Section 1.4)).  A new paragraph
is added at the end of Section 3 of the Schedule to the Loan Agreement as
follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Anniversary Fee.  On
March 30, 2009, provided that the Maturity Date is extended pursuant to Schedule
9 hereof, an Anniversary Fee of Forty Thousand Dollars ($40,000).”

     

    2.2           Schedule Section 5 (FINANCIAL
COVENANTS (Section 5.1)).  A new paragraph
is added prior to the “Definitions” portion of Section 5 of the Schedule to the
Loan Agreement as follows:

     

    “Subordinated
Debt.  Borrower shall have received at least Two Million
Dollars ($2,000,000) in proceeds from the issuance of Subordinated Debt no later
than May 30, 2008.”

     

    Bank hereby reserves the right to
modify the financial covenants in this Section in its reasonable business
discretion in connection with the extension of the Maturity Date referenced in
Section 9 of the Schedule.”

     

    2.3           Schedule Section 9 (MATURITY DATE
(Section 6.1)).  The Maturity
Date in Section 9 of the Schedule to the Loan Agreement is amended in its
entirety and replaced with the following:

     

    “March
30, 2009, provided however if, on March 30, 2009 Borrower has a Remaining Months
Liquidity of at least 9 months, the Maturity Date shall be automatically
extended to March 30, 2010; for the purposes hereof, “Remaining Months
Liquidity” shall mean the number of months obtained by dividing (i) Borrower’s
unrestricted cash held at Bank plus the lesser of (a) the Maximum Credit Limit
or (b) the Borrowing Base, minus in either case, the outstanding amount of any
Loans made under the Loan Agreement by (ii) Borrower’s monthly EBDA loss based
on the average EBDA loss for the prior three (3) months.  For the
purposes hereof, “EBDA” means earnings before depreciation and amortization,
excluding any non-cash expenses related to stock compensation activities and
gains from the Xpad sale, with all such terms being determined in accordance
with GAAP.”

     

    3.           Limitation
of Amendments.

     

    3.1           The
amendments set forth in Section
2, above, are effective for the purposes set forth herein and shall be
limited precisely as written and shall not be deemed to (a) be a consent to any
amendment, waiver or modification of any other term or condition of any Loan
Document, or (b) otherwise prejudice any right or remedy which Bank may now have
or may have in the future under or in connection with any Loan
Document.

     

    3.2           This
Amendment shall be construed in connection with and as part of the Loan
Documents and all terms, conditions, representations, warranties, covenants and
agreements set forth in the Loan Documents, except as herein amended, are hereby
ratified and confirmed and shall remain in full force and effect.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    4.           Representations and
Warranties.  To induce Bank to enter into this Amendment,
Borrower hereby represents and warrants to Bank as follows:

     

    4.1           Immediately
after giving effect to this Amendment (a) the representations and warranties
contained in the Loan Documents are true, accurate and complete in all material
respects as of the date hereof (except to the extent such representations and
warranties relate to an earlier date, in which case they are true and correct as
of such date), and (b) no Event of Default has occurred and is
continuing;

     

    4.2           Borrower
has the power and authority to execute and deliver this Amendment and to perform
its obligations under the Loan Agreement, as amended by this
Amendment;

     

    4.3           The
organizational documents of Borrower delivered to Bank on September 15, 2005,
remain true, accurate and complete and have not been amended, supplemented or
restated and are and continue to be in full force and effect;

     

    4.4           The
execution and delivery by Borrower of this Amendment and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this
Amendment, have been duly authorized;

     

    4.5           The
execution and delivery by Borrower of this Amendment and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this
Amendment, do not and will not contravene (a) any law or regulation binding on
or affecting Borrower, (b) any contractual restriction with a Person binding on
Borrower, (c) any order, judgment or decree of any court or other governmental
or public body or authority, or subdivision thereof, binding on Borrower, or (d)
the organizational documents of Borrower;

     

    4.6           The
execution and delivery by Borrower of this Amendment and the performance by
Borrower of its obligations under the Loan Agreement, as amended by this
Amendment, do not require any order, consent, approval, license, authorization
or validation of, or filing, recording or registration with, or exemption by any
governmental or public body or authority, or subdivision thereof, binding on
either Borrower, except as already has been obtained or made; and

     

    4.7           This
Amendment has been duly executed and delivered by Borrower and is the binding
obligation of Borrower, enforceable against Borrower in accordance with its
terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, liquidation, moratorium or other similar laws of general
application and equitable principles relating to or affecting creditors’
rights.

     

    5.           Counterparts.  This
Amendment may be executed in any number of counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same
instrument.

     

    6.           Postclosing
Items.  No later than thirty (30) days after the execution
hereof, Bank shall have received the Reaffirmation of Intercreditor Agreement

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    substantially
in the form attached hereto as Schedule 2, duly executed and delivered by
Wistron Corporation.

     

    7.           Effectiveness.  This
Amendment shall be deemed effective upon (a) the due execution and delivery to
Bank of this Amendment by each party hereto, (b) Borrower’s payment of an
amendment fee in an amount equal to Forty Thousand Dollars ($40,000) and (c)
Bank’s receipt of the Acknowledgement of Amendment and Reaffirmation of Guaranty
substantially in the form attached hereto as Schedule 1, duly executed and
delivered by Guarantor,

     

    [Signature
page follows.]

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    In
Witness Whereof, the parties hereto have caused this Amendment to be duly
executed and delivered as of the date first written above.

     

    
      
        	
                BANK

                 

              	
                BORROWER

              
	
                SILICON
      VALLEY BANK

              	
                XPLORE
      TECHNOLOGIES CORPORATION OF AMERICA

                 

              
	
                By:           /s/
      Regina Perkins

                Name:      Regina Perkins

                Title:        Relationship
    Manager

              	
                By:           /s/
      Michael J. Rapisand

                Name:      Michael J. Rapisand

                Title:        Chief Financial
      Officer

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