Document:

EX-10.8

 Exhibit 10.8 
 AMENDMENT NO. 1 TO FORBEARANCE AGREEMENT 
 This AMENDMENT NO. 1 TO
FORBEARANCE AGREEMENT (this “Amendment”), dated as of December 23, 2011, is made and entered into by and among Aquilex Holdings LLC (“Holdings”) and Aquilex Finance Corp. (together with Holdings, the
“Issuers”), each of the undersigned entities listed as guarantors (collectively, the “Guarantors”, and collectively with the Issuers, the “Note Parties”), and each of the undersigned beneficial
owners and/or investment advisors or managers of discretionary accounts for the holders or beneficial owners of the Notes (collectively, the “Holders”). 
 W I T N E S S E T H: 
 WHEREAS, the Note Parties and the Holders are
parties to that certain Forbearance Agreement, dated as of November 15, 2011 (as amended, restated, supplemented or otherwise modified prior to the date hereof, the “Forbearance Agreement”); 

WHEREAS, the Note Parties, the First Lien Agent, the holders of at least two-thirds in amount of the outstanding Loans (as defined
in the First Lien Credit Agreement), the Second Lien Agent, the holders of at least two-thirds in amount of the Loans (as defined in the Second Lien Credit Agreement), the beneficial holders or investment advisors or managers for the account of the
holders of at least two-thirds in principal amount of the Notes, certain Holders, as equity backstop parties, and the Sponsor are, concurrently with the effectiveness hereof, entering into a Restructuring Support Agreement, pursuant to which the
debt obligations of Holdings shall be restructured through either an out-of-court restructuring or commencement of pre-packaged bankruptcy cases (the “Restructuring Support Agreement”); 

WHEREAS, the Note Parties have requested an extension to the termination date set forth in the Forbearance Agreement and the
Holders are willing to agree to such extension on the terms and conditions set forth herein; 
 NOW THEREFORE, in
consideration of the foregoing and the mutual agreements set forth herein, the parties hereto agree as follows: 
 SECTION 1.
Definitions. Unless otherwise defined in this Amendment, each capitalized term used in this Amendment has the meaning assigned to such term in the Forbearance Agreement. 

SECTION 2. Amendments. On the terms and subject to the conditions set forth in this Amendment: 

(a) Section 1.10(a) of the Forbearance Agreement is hereby amended by inserting the following proviso at the end thereof: “;
provided, that if the deadline for consummating an out-of-court restructuring or, alternatively, commencing voluntary cases under chapter 11 of the Bankruptcy Code, has been extended pursuant to the terms of the Restructuring Support
Agreement to a date later than February 3, 2012, then this Section 1.10(a) shall be deemed a reference to such later date”; and 

 (b) Section 1.10(b) of the Forbearance Agreement is hereby amended by adding the words
“expiration or” immediately before the word “termination” appearing therein. 
 SECTION 3.
Joinder. Sphere Capital, LLC - Series D (the “New Party”), by its signature below, becomes a Holder and a party to the Forbearance Agreement (as amended by this Amendment), and agrees to all of the terms and provisions of
the Forbearance Agreement (as amended by this Amendment). Each reference to a “Holder” in the Forbearance Agreement (as amended by this Amendment) shall be deemed to include the New Party. 

SECTION 4. Effectiveness. This Amendment shall become effective on the date upon which the following conditions have been
satisfied in full: 
 (a) the Holders shall have received a counterpart of this Amendment duly executed by the Note Parties and
the Holders; and 
 (b) the Holders shall have received an executed, valid and effective amendment to the First Lien Forbearance
Agreement, in form and substance satisfactory to the Holders. 
 SECTION 5. Governing Law. THIS AMENDMENT SHALL
BE GOVERNED BY AND BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW.  

SECTION 6. Effect of the Amendment. Except as expressly set forth herein, this Amendment shall not by implication or
otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Holders under the Forbearance Agreement, the Indenture or the Notes, and shall not alter, modify, amend or in any way affect any of the terms,
conditions, obligations, covenants or agreements contained in the Forbearance Agreement, the Indenture or the Notes, all of which are ratified and affirmed in all respects and shall continue in full force and effect. Nothing herein shall be deemed
to entitle the Issuers, the other Note Parties or any other person to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Forbearance Agreement,
the Indenture or the Notes in similar or different circumstances. 
 SECTION 7. Execution in Counterparts. This
Amendment may be executed by the parties hereto in several counterparts, each of which shall be deemed to be an original and all of which shall constitute together but one and the same agreement. Delivery of an executed counterpart of a signature
page to this Amendment by facsimile or electronic mail shall be effective delivery of a manually executed counterpart of this Amendment. 
 SECTION 8. Waiver of Jury Trial. THE PARTIES HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AMENDMENT AND FOR ANY
COUNTERCLAIM THEREIN. 

  
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 SECTION 9. Headings. The paragraph headings used in this Amendment are for
convenience only and shall not affect the interpretation of any of the provisions hereof. 
 [Remainder of Page Left
Intentionally Blank] 

  
 3 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by its
officers thereunto duly authorized as of the date first above written. 
  

			
	ISSUERS:
	
	AQUILEX HOLDINGS LLC
		
	By:	 	AQUILEX ACQUISITION SUB III, LLC
		
	By:	 	AQUILEX HOLDCO L.P., its sole member
	
	By: AQUILEX HOLDCO GP, LLC, its general partner
	
	By: ONTARIO TEACHERS’ PENSION PLAN BOARD, its sole member
		
	By:	 	 /s/ Darren Smart

		 	Name: Darren Smart
		 	Title: Portfolio Manager
	
	AQUILEX FINANCE CORP.
		
	By:	 	 /s/ Jay W. Ferguson

		 	Name: Jay W. Ferguson
		 	Title: CFO and Treasurer

  
 Amendment
No. 1 to Forbearance Agreement 

 
			
	GUARANTORS:
	
	AQUILEX CORPORATION
		
	By:	 	 /s/ Jay W. Ferguson

		 	Name: Jay W. Ferguson
		 	Title: CFO and Treasurer
	
	AQUILEX HYDROCHEM, INC.
		
	By:	 	 /s/ Jay W. Ferguson

		 	Name: Jay W. Ferguson
		 	Title: CFO and Treasurer
	
	AQUILEX HYDROCHEM INDUSTRIAL CLEANING, INC.
		
	By:	 	 /s/ Jay W. Ferguson

		 	Name: Jay W. Ferguson
		 	Title: CFO and Treasurer
	
	AQUILEX SPECIALTY REPAIR AND OVERHAUL, INC.
		
	By:	 	 /s/ Jay W. Ferguson

		 	Name: Jay W. Ferguson
		 	Title: CFO and Treasurer

  
 Amendment
No. 1 to Forbearance Agreement 

 
			
	AQUILEX WSI, INC.
		
	By:	 	 /s/ Jay W. Ferguson

		 	Name: Jay W. Ferguson
		 	Title: CFO and Treasurer
	
	AQUILEX SMS, INC.
		
	By:	 	 /s/ Jay W. Ferguson

		 	Name: Jay W. Ferguson
		 	Title: CFO and Treasurer

  
 Amendment
No. 1 to Forbearance Agreement 

 
			
	CCP II DEBT AQLX I LLC
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
			
	CCP II DEBT AQLX II LLC
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
			
	CCP II DEBT AQLX III LLC
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
			
	CCP II DEBT AQLX IV LLC
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	CCP II DEBT AQLX V LLC
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	CCP II DEBT AQLX VI LLC
		
	 By:
	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	CCP II DEBT AQLX VII LLC
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	CCP II DEBT AQLX VIII LLC
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	CCP II DEBT AQLX IX LLC
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	CCP II DEBT AQLX X LLC
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	CCP II DEBT AQLX XI LLC
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	CCP II DEBT AQLX XII LLC
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	CCP II DEBT AQLX XIII LLC
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	CCP II DEBT AQLX XIV LLC
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	CCP II DEBT AQLX XV LLC
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	CCP II DEBT ACQUISITION, L.P.
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	CENTERBRIDGE CAPITAL PARTNERS SBS II, L.P.
		
	By:	 	 /s/ Jeff Gelfand

		 	Name: Jeff Gelfand
		 	Title: Senior Managing Director

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	LOCUST STREET FUNDING LLC
	
	By: GSO / BLACKSTONE DEBT FUNDS MANAGEMENT LLC, as Sub-Adviser
		
	By:	 	 /s/ Daniel H. Smith

		 	Name: Daniel H. Smith
		 	Title: Authorized Signatory

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	REDWOOD MASTER FUND, LTD.
	
	By: REDWOOD CAPITAL MANAGEMENT, LLC, its Investment Manager
		
	By:	 	 /s/ Jonathan Kolatch

		 	Name: Jonathan Kolatch
		 	Title: Managing Member

  
 Amendment
No. 1 to Forbearance Agreement 

 
					
	SPHERE CAPITAL, LLC – SERIES D
		
	By:	 	 /s/ Eva Kalawski

		 	Name: Eva Kalawski
		 	Title: Vice President & Secretary

  
 Amendment
No. 1 to Forbearance AgreementParticipation Agreement

 Exhibit 10.1 
 PARTICIPATION AGREEMENT 
 THIS PARTICIPATION AGREEMENT (this
“Agreement”) is entered into as of December 19, 2011, among PCA LSG Holdings, LLC, a Delaware limited liability company (“PCA Holdings”), Pegasus Partners IV, L.P., a Delaware limited partnership
(“Fund IV”), Pegasus Investors IV, L.P., a Delaware limited partnership (the “Fund IV GP”), Pegasus Capital Partners IV, L.P., a Delaware limited partnership (“PCP IV”), and
Pegasus Partners IV (OA), LP, a Delaware limited partnership (the “OA Fund”). Capitalized terms used but not defined herein shall have the meanings ascribed thereto in the Second Amended and Restated Agreement of Limited
Partnership of Fund IV dated as of September 28, 2007, as amended. 
 WHEREAS, Lighting Science Group Corporation, a
Delaware corporation (the “Company”), a Portfolio Company of Fund IV, is currently marketing a private placement investment opportunity, but has received interim funding from, among others, PCA Holdings, an Affiliate of Fund
IV GP; 
 WHEREAS, pursuant to a Subscription Agreement among the Company, PCA Holdings and Fund IV, dated as of
November 17, 2011 and attached as Exhibit A (the “Series F Subscription Agreement”), the Company granted PCA Holdings the option to purchase, in the aggregate, up to 40,000 units (the “Series F
Units”) of the Company’s securities at a purchase price of $1,000.00 per Series F Unit, each Series F Unit consisting of: (a) one share of the Company’s Series F Preferred Stock, par value $0.001 per share; and
(b) 83 shares of the Company’s common stock, par value $0.001 per share, and PCA Holdings purchased 10,000 of the Series F Units; 
 WHEREAS, pursuant to a Subscription Agreement among the Company, PCA Holdings, Fund IV and certain other Persons, dated as of December 1, 2011 and attached as Exhibit B (the
“Series G Subscription Agreement”), the Company has issued to certain other Persons units (“Series G Units”) of the Company’s securities at a purchase price of $1,000 per Series G Unit, with each
Series G Unit consisting of: (a) one share of the Company’s Preferred Stock, par value $0.001 per share (the “Preferred Stock”), issued pursuant to the Certificate of Designation attached as Exhibit C; and
(b) 83 shares of the Company’s common stock, par value $0.001 per share; 
 WHEREAS, in connection with the
issuance of Series G Units by the Company, pursuant to Section 7 of the Series F Subscription Agreement, PCA Holdings exchanged its outstanding Series F Units for Series G Units; provided that the Preferred Stock associated therewith
shall begin earning and accruing dividends as of November 17, 2011; 
 WHEREAS, effective as of December 9,
2011, PCA Holdings exercised its right under the Series G Subscription Agreement to purchase an additional 1,650 Series G Units from the Company at a purchase price of $1,000 per Series G Unit;  

WHEREAS, the Advisory Board of Fund IV has given its consent to PCA Holdings providing interim funding to the Company; and

  
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 WHEREAS; PCA Holdings now wishes to enter into certain arrangements regarding the
Series G Units with the other parties hereto; 
 NOW, THEREFORE, in consideration of the mutual agreements herein
contained, the parties hereto agree as follows: 
  

	 	1.	Offer of Series G Units. 

 (a) PCA Holdings hereby agrees that at any time on or prior to May 17, 2012, each Limited Partner of Fund IV may elect to purchase some or all of its pro rata share of all Series G Units purchased by
PCA Holdings based on such Limited Partner’s Capital Commitment relative to the total Capital Commitments of all Limited Partners. Upon an exchange of securities pursuant to Section 8 of the Series G Subscription Agreement or a Subsequent
Transaction (as defined in the Series G Subscription Agreement), the offer set out herein shall apply to such new securities (the Series G Units or such other securities, the “Offered Units”). The offer shall terminate if the
Preferred Stock is redeemed by the Company, notwithstanding notification of the Limited Partners. 
 (b) Fund IV
shall notify each Limited Partner of its right to elect to purchase the Offered Units: (i) promptly following the date of this Agreement; and (ii) following any additional subscription for Series G Units by PCA Holdings. Fund IV shall also
notify each Limited Partner in the event that the Preferred Stock is redeemed by the Company and the offer is therefore terminated. 
 (c) Each notice sent pursuant to Section 1(b) above shall (i) specify the number of Offered Units held by PCA Holdings as of such date and each Limited Partner’s pro rata share of such
Offered Units; (ii) state that a Limited Partner electing to purchase Offered Units (an “Electing LP”) must give written notice to PCA Holdings of its intention to purchase Offered Units, including the number of Offered
Units it wishes to purchase; (iii) state the Purchase Price (as defined below); and (iv) state that an election to purchase may be made at any time on or prior to May 17, 2012, subject to an earlier redemption of the Preferred Stock.

 (d) PCA Holdings shall transfer the relevant Offered Units to an Electing LP within 10 Business Days of
receipt of such Electing LP’s confirmation of its election, subject to the Electing LP entering into a purchase agreement with PCA Holdings and PCA Holdings’ receipt of the Purchase Price. The Purchase Price shall be paid by the Electing
LP by wire transfer of immediately available funds to PCA Holdings on the date of transfer. 
 (e) The
“Purchase Price” for the Offered Units shall be $1,000 per Offered Unit plus any dividends accrued but unpaid on the Preferred Stock (or any other preferred stock or debt security issued pursuant to a Subsequent Transaction
or any other exchange of securities pursuant to the Series G Subscription Agreement) through the date that such Offered Units are transferred. 

  
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	 	2.	Fund IV Participation Right. 

 (a) PCA Holdings shall contribute to Fund IV promptly upon receipt of any Participation Amount the product of (i) the Investor Percentage and (ii) such Participation Amount. 

(b) As used in this Section 2, the following terms shall have the following meanings: 

“Assumed Tax Rate” shall mean the applicable highest marginal tax rates for an individual resident in New York
City (including the Medicare tax on investment income of individuals) applicable to ordinary income, qualified dividend income or capital gains, as appropriate, taking into account year in which the taxable net income is received, and taking into
account the deductibility of state and local income taxes as applicable at the time for United States federal income tax purposes. 
 “Investor Percentage” shall mean 100% less the percentage of Fund IV’s total Capital Commitments represented by the Fund IV GP, PCP IV and the OA Fund. 

“Participation Amount” shall mean 50% of the excess of (i) all amounts paid by the Company in respect of the
Offered Units over (ii) $1,000 per Offered Unit plus a dividend of 10% per annum, on a cumulative and compounded basis, but net of taxes payable on any such amounts calculated at the Assumed Tax Rate. 

(c) Each of the Fund IV GP, PCP IV and the OA Fund hereby waives its right to receive any portion of the Participation
Amount. Accordingly, the Participation Amount shall be distributed as an Other Distribution among the other Limited Partners. 
 (d) For the avoidance of doubt, the calculation of the Participation Amount shall remain unchanged notwithstanding that: (i) a higher dividend becomes payable on the Preferred Stock in accordance
with the terms thereof, or (ii) the Series G Units are exchanged for any other securities pursuant to Section 8 of the Series G Subscription Agreement or a Subsequent Transaction, and such new securities may receive a higher dividend than
10% per annum. 
  

	 	3.	General Provisions. 

 (a) Third Party Rights. The Limited Partners of Fund IV shall be third party beneficiaries of this Agreement, and this Agreement shall not be amended in a manner adverse to the Limited Partners
without the consent of the Advisory Board. 
 (b) Governing Law. The laws of the State of New York without
reference to the conflict of laws provisions thereof shall govern all questions concerning the construction, validity and interpretation of this Agreement. 
 (c) Amendment and Waiver. The provisions of this Agreement may be amended and waived only with the prior written consent of each of the parties hereto. 

  
 -3-

 (d) Counterparts. This Agreement may be executed in counterparts,
each of which shall be an original and all of which shall constitute a single agreement. 
 [Signature page follows]

  
 -4-

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of
the date first written above. 
  

			
	PCA LSG HOLDINGS, LLC
	
	By: Pegasus Capital, LLC, its managing member
		
	By:	 	/s/ Craig M. Cogut
	Name:	 	Craig M. Cogut
	Title:	 	President & Managing Member

  

			
	PEGASUS PARTNERS IV, L.P.
	
	By: Pegasus Investors IV, L.P., its general partner
	
	By: Pegasus Investors IV GP, L.L.C., its general partner
		
	By:	 	/s/ Jason Schaefer
	Name:	 	Jason Schaefer
	Title:	 	Secretary and General Counsel

  

			
	PEGASUS INVESTORS IV, L.P.
	
	By: Pegasus Investors IV GP, L.L.C., its general partner
		
	By:	 	/s/ Jason Schaefer
	Name:	 	Jason Schaefer
	Title:	 	Secretary and General Counsel

  

			
	PEGASUS CAPITAL PARTNERS IV, L.P.
	
	By: Pegasus Investors IV GP, L.L.C., its general partner
		
	By:	 	/s/ Jason Schaefer
	Name:	 	Jason Schaefer
	Title:	 	Secretary and General Counsel

 
			
	PEGASUS PARTNERS IV (OA), L.P.
	
	By: Pegasus Investors IV, L.P., its general partner
	
	By: Pegasus Investors IV GP, L.L.C., its general partner
		
	By:	 	/s/ Jason Schaefer
	Name:	 	Jason Schaefer
	Title:	 	Secretary and General Counsel

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