Document:

boaamerescoamendmentno8t

         AMENDMENT NO. 8 TO THIRD AMENDED AND RESTATED CREDIT AND                              SECURITY AGREEMENT          This AMENDMENT NO. 8 TO THIRD AMENDED AND RESTATED CREDIT AND  SECURITY  AGREEMENT  is  dated  as  of  June  29,  2018  (this  “Amendment”),  among   AMERESCO,  INC.  (the  “Borrower”),  THE  GUARANTORS  PARTY  HERETO  (the   “Guarantors” and collectively with the Borrower, the “Loan Parties”), THE LENDERS PARTY   HERETO  (the  “Lenders”),  and  BANK  OF  AMERICA,  N.A.,  as  administrative  agent  (the   “Agent”).          WHEREAS, the Loan Parties, the Lenders, and the Agent are parties to that certain Third   Amended and Restated Credit and Security Agreement dated as of June 30, 2015, as heretofore   amended, among the Borrower, the Guarantors, the Lenders, and the Agent (as amended, restated,   supplemented or otherwise modified from time to time, the “Credit Agreement”);          WHEREAS, the Loan Parties, the Agent and the Lenders wish to add an additional Lender,   to increase the aggregate amount of the Revolving Commitments to $85,000,000, to increase the   Term  Loan  to  $46,000,000,  and  to  make  certain  other  changes  to the  Credit  Agreement,  and   accordingly revise certain provisions of the Credit Agreement, as described herein;           NOW,  THEREFORE,  in  consideration of  the  foregoing  and  the  agreements  contained   herein, the parties agree that the Credit Agreement is hereby amended as follows:         1.    Capitalized Terms. Except as otherwise expressly defined herein, all capitalized   terms used herein which are defined in the Credit Agreement have the same meanings herein as   therein, except to the extent that such meanings are amended hereby.          2.    Amendment to Credit Agreement.          (a)   Section 1.1 of the Credit Agreement is hereby amended to delete the definitions of   “Construction Completion and Cost Overrun Guaranty,” “EBITDA,” “LC Issuer,” “Renewable   Energy Subsidiaries,” “Revolving Commitment,” “Term Loan, “Term Loan Commitment,” “Term   Loan Lender” and “Total Funded Debt” in their entirety and replace them with the following:                “Construction Completion and Cost Overrun Guaranty” means, in connection with         any Non-Core Energy Project, a guaranty of (i) the completion and operation of such Non-        Core Energy Project on or prior to the date set forth in such guaranty and (ii) the payment         of all construction costs and expenses related to such Non-Core Energy Project in excess         of the proposed budget for such Non-Core Energy Project.                 “EBITDA”  means,  for  any  period,  for  the  Core  Ameresco  Companies  on  a         consolidated basis, an amount equal to Consolidated Net Income for such period plus (a)        the  following  to  the  extent  deducted  in  calculating  such  Consolidated  Net  Income:  (i)        Consolidated Interest Charges for such period, (ii) the provision for federal, state, local and        foreign income taxes payable for such period, (iii) depreciation and amortization expense        for such period, (iv) Non-Cash Charges for such period, (v) extraordinary or non-recurring        expenses for such period, in an amount not to exceed $5,000,000 after the Effective Time     AM 69286370.4   

 

                 (it  being  understood  that  any  payment  required  to  be  made  by  any  Core  Ameresco   Company  in  respect  of  any  Non-Core  Energy  Project  Guaranty  Liability  shall  reduce   Consolidated Net Income of the Core Ameresco Companies and shall not be added back   to  EBITDA),  and  (vi)  the  aggregate  amount  received  in  cash  by  the  Core  Ameresco   Companies during such period in respect of regularly scheduled dividends or distributions   from  the  Special  Purpose  Subsidiaries,  calculated  and  paid  in  accordance  with  the   organizational documents of such Special Purpose Subsidiaries; (provided, that the amount   added back pursuant to this clause (vi) shall not include any amounts received by the Core   Ameresco Companies, in connection with any sale, transfer or other disposition of assets  or  Equity  Interests  of  any  Special  Purpose  Subsidiary);  minus  (b)  the  following  to  the  extent  included  in  calculating  such  Consolidated  Net  Income  (i)  extraordinary  or  non- recurring  gains  during  such  period  (including,  without  limitation,  non-cash  gains  attributable to the mark to market movement in the valuation of hedging obligations (to the  extent the cash impact resulting from such gain has not been realized) or other derivative  instruments,  and  foreign  currency  translations),  and  (ii)  proceeds  received  during  such  period in respect of Casualty Events and Dispositions. For purposes of calculating EBITDA   for any period during which a Permitted Acquisition is consummated, EBITDA shall be   adjusted in a manner proposed by the Borrower and reasonably satisfactory to the Required   Lenders.          “LC Issuer” means Bank of America or any other Lender designated by the Agent   in its sole discretion and with the consent of such other Lender in its sole discretion, in each   case, in its capacity as an issuer of Letters of Credit hereunder, or any successor issuer of   Letters of Credit hereunder.          “Renewable  Energy  Subsidiaries”  means  (i)  each  of  the  Subsidiaries  of  the   Borrower designated by the Borrower as a renewable energy subsidiary on Schedule 6.13   attached hereto as of the Effective Date, as the same may be amended from time to time,   and (ii) any other direct or indirect Subsidiary of the Borrower formed for the purpose of   (x) financing, constructing and/or operating any project for the construction and operation   of a facility to process methane gas from one or more landfill sites and/or convert methane   gas, sunlight, wind or biomass into useable energy and/or (y) selling such methane gas   and/or energy and related products produced from methane gas, sunlight, wind or biomass.          “Revolving Commitment” means, with respect to each Lender, the commitment of   such Lender to make Revolving Loans and to acquire participations in Letters of Credit   hereunder, as such commitment may be (a) reduced from time to time pursuant to Sections   2.6 and 2.9, (b) increased from time to time pursuant to Section 2.14, or (c) reduced or   increased from time to time pursuant to assignments by or to such Lender pursuant to   Section 12.6. The initial maximum amount of each Lender’s Revolving Commitment is set   forth on Schedule 2.1, or in the Assignment and Acceptance pursuant to which such Lender   shall  have  assumed  its  Revolving  Commitment,  as  applicable.  The  aggregate  original   maximum amount of the Revolving Commitments is (i) equal to $60,000,000 as of the   Effective Time, (ii) equal to $75,000,000 as of the Revolving Amendment Effective Time,   and (iii) equal to $85,000,000 as of the Amendment No. 8 Effective Time.                                     2  

 

               “Term Loan” means (i) the $17,142,857.12 Term Loan made by the Lenders to the        Borrower  at  the  Effective  Time,  (ii)  at  the  Term  Amendment  Effective  Time,  the        $30,000,000 Term Loan of which $20,000,000.03 was advanced by the Term Lenders to        the  Borrower  on  the  Term  Amendment  Effective  Time  for  the  purpose  of  repaying        outstanding indebtedness under the Revolving Facility, and (iii) at the Amendment No. 8        Effective time, the $46,000,000.00 Term Loan of which $25,000,000.00 will be advanced        by  the  Term  Lenders  for  the  purpose  of  repaying  outstanding  indebtedness  under  the        Revolving Facility.               “Term  Loan  Commitment”  means  with  respect  to  each  Term  Loan  Lender,  the        agreement of such Lender to retain the outstanding balance of its portion of the Term Loan        under the Prior Credit Agreement to the Borrower at the Effective Time, to make additional        Term Loan advances to increase the Term Loan to $30,000,000 at the Term Amendment        Effective Time, and to make additional Term Loan advances to increase the Term Loan to        $46,000,000 at the Amendment No. 8 Effective Time. The aggregate original amount of        the Term Loan Commitments, equaling the outstanding balance of the Term Loans under        the  Prior  Credit  Agreement,  was  $17,142,857.12  as  of  the  Effective  Time,  and        $30,000,000.00 as of the Term Amendment Effective Time, and, equaling the aggregate        amount of the Term Loan Commitments in effect, is $46,000,000.00 as of the Amendment        No. 8 Effective Time. The amount of each Term Loan Lender’s Term Loan Commitment        is set forth on Schedule 2.1.               “Term Loan Lender” means, (a) a Lender that has a Term Loan Commitment set        forth opposite its name on Schedule 2.1 and (i) who, if a Lender at the Effective Time,        retained a portion of the Term Loan under the Prior Credit Agreement at the Effective        Time, (ii) who, if a Lender a the Term Amendment Effective Time, advanced additional        Term Loans as of the Term Amendment Effective Time, and (iii) who advanced additional        Term Loans as of the Amendment No. 8 Effective Time, and (b) thereafter, the Lenders        from  time  to  time  holding  an  interest  in  the  Term  Loan  after  giving  effect  to  any        assignments thereof permitted by Section 12.6.               “Total Funded Debt” means the outstanding principal amount of all Indebtedness        of the Core Ameresco Companies determined on a consolidated basis (without duplication)        in respect of borrowed money, plus the face amount of letters of credit for which a Core        Ameresco Company is an obligor to the extent such letters of credit are not secured by cash        deposits, plus any obligations of the Borrower with respect to its Guarantees of the Design-       Build  Agreement  to  the  extent  such  obligations  are  required  to be  accrued  on  the        consolidated balance sheet of the Core Ameresco Companies in accordance with GAAP,        including (i) all Indebtedness described in clauses (a), (b), (c) and (e) of the definition of       Indebtedness set forth herein, including all guarantees of any of such Indebtedness, and (ii)        all Non-Core Energy Project Guaranty Liabilities, but excluding any Indebtedness incurred        by the Loan Parties in connection with any Energy Conservation Project Financing.         (b)   Section 1.1 of the Credit Agreement is further hereby amended to delete the defined  terms “Renewable Energy Project Guaranty” and “Renewable Energy Project Guaranty Liability”  in their entirety and to add the following defined terms in alphabetical order:                                          3  

 

               “Amendment No. 8” means Amendment No. 8 to Third Amended and Restated        Credit Agreement dated as of June 29, 2018, among the Borrower, the Guarantors, the        Lenders and the Agent.               “Amendment No. 8 Effective Time” means the date on which each of the conditions        of the effectiveness of Amendment No. 8 pursuant to Section 6 thereof has been satisfied.               “Non-Core  Energy  Project  Guaranty”  means  in  connection  with  any  Non-Core        Energy Project, (a) any Guarantee (other than a Construction Completion and Cost Overrun        Guaranty)  by  the  Borrower  of  the  obligations  of  the  Non-Core  Energy  Subsidiary  in        connection with such Non-Core Energy Project and (b) any indemnification by or from the        Borrower of the Non-Core Energy Subsidiary’s customer or the owner of property used for        such Non-Core Energy Project or of a third party purchaser of gas or energy and related        products (including heating and cooling) produced from such Non-Core Energy Project;        provided,  however,  that  no  Non-Core  Energy  Project  Guaranty  shall  guarantee  the        Indebtedness of any Person.               “Non-Core Energy Project Guaranty Liability” means, in connection with any Non-       Core Energy Project Guaranty, any liability required to be accrued on the consolidated        balance sheet of the Core Ameresco Companies in accordance with GAAP, but excluding        the Borrower’s guaranty of the obligations of Ameresco Evansville.         (c)   The second sentence of paragraph (c) of Section 2.1 of the Credit Agreement is  hereby deleted in its entirety and replaced with the following new second sentence of paragraph  (c):          Each such Loan Notice must be received by the Agent (i) in the case of a Eurocurrency        Borrowing, not later than 11:00 a.m. three Business Days before the date of the proposed        Borrowing or (ii) in the case of a Base Rate Borrowing not later than 12:00 noon on the        date  of  the  proposed  Borrowing  (including  a  Base  Rate  Borrowing  to  finance  the        reimbursement  of  an  LC  Disbursement  as  contemplated  by  Section 2.4(c)),  provided        further  that  the  Borrower  shall use  Swingline  Loan  Borrowings  to  finance  the        reimbursement of an LC Disbursement except to the extent that such Borrowings would        cause the aggregate principal balance of all Swingline Loans outstanding to exceed the        Swingline Commitment, in which case the Borrower may use Base Rate Revolving Credit        Borrowings to finance such reimbursement, but only to the extent of such excess.         (d)   Paragraph (g) of Section 2.1 of the Credit Agreement is hereby deleted in its entirety  and replaced with the following new paragraph (g):               (g)   Revolving Notes. Prior to the Restatement Date, the Borrower shall prepare,        execute and deliver to each Revolving Lender requesting a note evidencing the Revolving        Loans owed to it a Revolving Note in the principal amount of such Lender’s Revolving        Commitment. Prior to the Term Amendment Effective Time, the Borrower shall prepare,        execute and deliver to each Revolving Lender requesting a replacement note to evidence        the Revolving Loans owed to it a Revolving Note in the principal amount of such Lender’s        Revolving Commitment in effect as of the Term Amendment Effective Time. Prior to the                                          4  

 

         Revolving Amendment Effective Time, the Borrower shall prepare, execute and deliver to        each Revolving Lender requesting a replacement note to evidence the Revolving Loans        owed  to  it  a  Revolving  Note  in  the  principal  amount  of  such  Lender’s  Revolving        Commitment  in  effect  as  of  the  Revolving  Amendment  Effective  Time.  Prior  to  the        Amendment No. 8 Effective Time, the Borrower shall prepare, execute and deliver to each        Revolving Lender requesting a note or a replacement note to evidence the Revolving Loans        owed  to  it  a  Revolving  Note  in  the  principal  amount  of  such  Lender’s  Revolving        Commitment  in  effect  as  of  the  Amendment  No.  8  Effective  Time. Thereafter,  the        Revolving Loans of each Revolving Lender evidenced by such Revolving Note and interest        thereon  shall  at  all  times  (including  after  assignment  pursuant  to  Section  12.6)  be        represented by one or more promissory notes in such form payable to the order of the payee        named therein.         (e)   Paragraphs (a) and (e) of Section 2.2. of the Credit Agreement are hereby deleted  in their entirety and replaced with the following new paragraphs (a) and (e):              (a)    Funding of the Term Loan. Subject to the terms and conditions set forth        herein, each Term Loan Lender that was a Lender under the Prior Credit Agreement agrees        to retain its portion of the Term Loan outstanding under the Prior Credit Agreement in        Dollars in the full amount of its Term Loan Commitment at the Effective Time. Subject to        the terms and conditions set forth in Amendment No. 4, each Lender that is a Lender a the        Term Amendment Effective Date shall make an additional Term Loan to the Borrower so        that the aggregate amount of the Term Loan as of the Term Amendment Effective Time        shall be increased to the amount of such Term Lender’s Term Loan Commitment as of the        Term  Amendment  Effective  Time.  Subject  to  the  terms  and  conditions set forth in        Amendment No. 8, each Lender shall make an additional Term Loan to the Borrower so        that the aggregate amount of the Term Loan as of the Amendment No. 8 Effective Time        shall be increased to the amount of such Term Lender’s Term Loan Commitment as of the        Amendment No. 8 Effective Time. From and after the Amendment No. 8 Effective Time,        all references to the Term Loan shall refer to the Term Loan as so increased. Principal        amounts of the Term Loan that have been repaid or prepaid may not be reborrowed.              (e)   Term Note. Prior to the Effective Time, the Borrower shall prepare, execute        and deliver to each Term Loan Lender requesting a note to evidence the Term Loans owed        to it a Term Note in the principal amount of such Lender’s Term Loan Commitment. Prior        to the Term Amendment Effective Time, the Borrower shall prepare, execute and deliver        to each Term Loan Lender requesting a replacement note to evidence the Term Loans owed        to it a Term Note in the principal amount of such Lender’s Term Loan Commitment in        effect as of the Term Amendment Effective Time. Prior to the Amendment No. 8 Effective        Time,  the  Borrower  shall  prepare,  execute  and  deliver  to  each  Term  Loan  Lender        requesting a note or a replacement note to evidence the Term Loans owed to it a Term Note        in  the  principal  amount  of  such  Lender’s  Term  Loan  Commitment  in  effect  as  of  the        Amendment No. 8 Effective Time. Thereafter, such Term Loan Lender’s portion of the        Term Loan evidenced by such Term Note and interest thereon shall at all times (including        after assignment pursuant to Section 12.6) be represented by one or more promissory notes        in such form payable to the order of the payee named therein.                                          5  

 

           (f)   Section 6.21 of the Credit Agreement is hereby amended by deleting the words   “Renewable Energy Project Guaranties” on the second line thereof and substituting the words   “Non-Core Energy Project Guaranties” in place thereof.          (g)   The second sentence of Section 8.5 of the Credit Agreement is hereby deleted in its   entirety and replaced with the following new second sentence of Section 8.5:          Without limiting the generality of the foregoing, the Loan Parties will maintain or cause to         be maintained replacement value casualty insurance on the Collateral under such policies         of insurance and flood insurance on all Additional Mortgaged Property in compliance with         applicable flood laws and regulations, in each case with such insurance companies, in such         amounts, with such deductibles, and covering such terms and risks as are standard and         customary, available on commercially reasonable terms and at all times satisfactory to the        Agent in its commercially reasonable judgment.         (h)   Section 8.13 of the Credit Agreement is hereby amended to add a new paragraph  (d) immediately following paragraph (c) of that section, to read as follows:               (d)    Notwithstanding anything contained in this Agreement to the contrary, no        Mortgage shall be executed and delivered with respect to any real property unless and until        each Lender (i) has received, at least twenty business days prior to such execution and        delivery,  a  life  of  loan  flood  zone  determination  and  such  other  documents  as  it  may        reasonably request to complete its flood insurance due diligence and (ii) has confirmed to        the Agent that flood insurance due diligence and flood insurance compliance has been        completed to its satisfaction.         (i)   Paragraph (g) of Section 9.1 of the Credit Agreement is hereby deleted in its entirety   and replaced with the following new paragraph (g):                (g)  Indebtedness incurred by any Loan Party or Canadian Subsidiary under an         Energy  Conservation  Project  Financing  (including,  without  limitation,  Indebtedness         incurred by the Loan Parties under an Energy Conservation Project Financing existing as         of the Restatement Date and set forth on Schedule 9.1 attached hereto) in an aggregate         principal amount outstanding at any time not in excess of $500,000,000;          (j)   Paragraphs  (m)  and  (n)  of  Section  9.1  of  the  Credit  Agreement  are  hereby   redesignated as paragraphs (n) and (o), respectively, and a new paragraph (m) is hereby added   immediately following paragraph (l) to read as follows:                (m)  Indebtedness incurred by a Foreign Subsidiary that is a Non-Core Energy         Subsidiary;          (k)   Paragraphs  (i)  and  (j)  of  Section  9.2  of  the  Credit  Agreement  are  hereby   redesignated  as  paragraphs  (j)  and  (k),  respectively,  and  a  new  paragraph  (i)  is  hereby  added  immediately following paragraph (h) to read as follows:               (i)    Liens  on  assets  of  a  Foreign  Subsidiary  that  is  a  Non-Core Energy         Subsidiary to secure Indebtedness permitted under Section 9.1(m);                                          6  

 

         (l)   Paragraphs (f) and (h) of Section 9.3 of the Credit Agreement are hereby deleted in  their entirety and replaced with the following new paragraphs (f) and (h):               (f)   any Construction Completion and Cost Overrun Guaranty delivered by the        Borrower in connection with a Non-Core Energy Project;               (h)   any  Non-Core  Energy  Project  Guaranty  delivered  by  the  Borrower  in       connection with a Non-Core Energy Project, provided, however, that:                     (i)   one or more of the Core Domestic Ameresco Companies or Non-             Core Energy Subsidiaries shall control the operation and maintenance of the Non-             Core  Energy  Project  during  the  term  of  the  renewable  energy  purchase  or              infrastructure agreement with respect to such None Core Energy Project; and                     (ii)  in  connection  with  the  delivery  of  any  Non-Core  Energy  Project              Guaranty, the Borrower shall deliver to the Agent (A) prior to the delivery of such              Non-Core Energy Project Guaranty, a certificate executed by the Chief Financial              Officer  of  the  Borrower  certifying  (based  upon  such  consultation  with  the              Borrower’s  independent  certified  public  accountants  as  the  Borrower  shall              reasonably  deem  appropriate)  that,  in  accordance  with  GAAP,  such  Non-Core              Energy  Project  Guaranty  will  not  result  in  the  accrual  of  a  liability  upon  the              consolidated balance sheet of the Core Ameresco Companies for the fiscal period              during which such Non-Core Energy Project Guaranty is delivered; (B) a copy of              such Non-Core Energy Project Guaranty and all other documents related thereto;              and (C) such other information or reports as the Agent may reasonably request with              respect to such Non-Core Energy Project Guaranty;         (m)   Paragraph (i) of Section 9.3 of the Credit Agreement is hereby amended to delete  the word “and” at the end thereof, and paragraph (j) is hereby deleted in its entirety and replaced  with the following new paragraphs (j) and (k):               (j)  Obligations of Ameresco Canada or the Borrower under one or more letters        of credit to secure a part of the obligations of Ameresco Canada under the Design-Build        Agreement, provided that the aggregate of such obligations of the Borrower and Ameresco        Canada  under  this  paragraph  (j) shall  not  exceed  10%  of  the  contract  price  under  the        Design-Build Agreement, and provided, further, that the obligations of the Borrower under        this paragraph (j) shall be a part of and not exceed the obligations of the Borrower under        paragraph (i) of this Section 9.3; and               (k)   Guarantees by a Foreign Subsidiary that is a Non-Core Energy Subsidiary.         (n)   Clause (xiii) of paragraph (c) of Section 9.4 of the Credit Agreement is hereby  deleted in its entirety and replaced with the following new clause (xiii) of paragraph (c):               (xiii)  any Loan Party may sell, transfer assign or otherwise dispose of the assets        of any Non-Core Energy Project or the Equity Interests of a Special Purpose Subsidiary        (other than the Hawaii Joint Venture); and                                          7  

 

         (o)   Paragraph (d)(ii) of Section 9.4 of the Credit Agreement is hereby deleted in its  entirety and replaced with the following new paragraph (d)(ii):                     (ii)  both immediately prior to and after giving effect to such Permitted        Acquisition  on  a  Pro  Forma  Basis  incorporating  such  pro-forma  assumptions  as  are        satisfactory  to  the  Agent  in  its  reasonable  discretion,(A)  the Loan Parties shall be in        compliance with the financial covenant set forth in Section 9.10(b) hereof, (B) the Core        Leverage Ratio shall not exceed 2.50 to 1.00, and (C) the sum of unrestricted cash plus the        amount of the Revolving Commitment available to be borrowed under Section 2.1 shall        not be less than $25,000,000;         (p)   Paragraph  (a)  of  Section  9.10  of  the  Credit  Agreement  is  hereby  deleted  in  its  entirety and replaced with the following new paragraph (a):               (a)   Total Funded Debt to EBITDA Ratio. The Loan Parties shall not permit the        Core Leverage Ratio (i) as of the end of each fiscal quarter ending on or before June 30,        2016, to exceed 2.00 to 1.00, (ii) as of the end of each fiscal quarter ending on or after        September 30, 2016, and on or before March 31, 2018, to exceed 2.75 to 1.00 and (iii) as        of the end of each fiscal quarter ending June 30, 2018, and thereafter to exceed 3.00 to        1.00.         (q)   Paragraph (a)(iv) of Section 12.2 of the Credit Agreement is hereby deleted in its  entirety and replaced with the following new paragraph (a)(iv):                     (iv)  except  as  expressly  set  forth  in  clause  (x)  below,  change        Section 2.9(c) in a manner that would alter the application of prepayments thereunder, or        change Section 2.8(b), Section 2.8(g) or Section 10.3 in a manner that would alter the order        or pro rata sharing of payments required thereby, without in each case the written consent        of each Lender;         (r)   Section 12.5 of the Credit Agreement is hereby deleted in its entirety and replaced  with “Reserved.”         (s)   Section 12.25 of the Credit Agreement is hereby deleted in its entirety and replaced  with the following new Section 12.25:               12.25.  Lender Status. Each Lender represents and warrants as of the Amendment        No. 8 Effective Time to the Agent and its Affiliates, and not, for the avoidance of doubt,        for the benefit of the Borrower or any other Loan Party, that such Lender is not and will        not thereafter be (i) an employee benefit plan subject to Title I of the ERISA, (ii) a plan or        account subject to Section 4975 of the Code, (iii) an entity deemed to hold “plan assets” of        any such plans or accounts for purposes of ERISA or the Code, or (iv) a “governmental        plan” within the meaning of ERISA.         (t)   Schedule 1.1(c) of the Credit Agreement is deleted in its entirety and replaced with  the Schedule 1.1(c) attached hereto.                                          8  

 

           (u)   Schedule 2.1 of the Credit Agreement is hereby deleted in its entirety and replaced   with the Schedule 2.1 attached hereto. Upon the Amendment No. 8 Effective Date (i) SunTrust   Bank shall be a Lender under the Credit Agreement; (ii) the Term Loan shall be increased by   $25,000,000 to reduce the Revolving Loan balances by the same amount, and the Term Loan   balances  shall  be  adjusted  in accordance  with  Schedule  2.1,  and  (iii)  the  Revolving  Credit   Commitments shall be adjusted in accordance with Schedule 2.1, and the remaining Revolving   Loan balances shall be adjusted in accordance with the Revolving Credit Commitments.           (v)   Notwithstanding the limitations in Sections 9.7 and 9.14 of the Credit Agreement,   the Agent and the Lenders hereby consent to the conversion by the Borrower of all or any part of   its loans to Ameresco Canada into equity in Ameresco Canada.          3.    Confirmation  of  Guaranty  by  Guarantors.  Each  Guarantor  hereby  confirms  and   agrees that all indebtedness, obligations or liability of the Borrower under the Credit Agreement   as amended hereby, whether any such indebtedness, obligations and liabilities are now existing or   hereafter arising, due or to become due, absolute or contingent, or direct or indirect, constitute   “Guaranteed  Obligations”  under  and  as  defined  in  the  Credit  Agreement  and,  subject  to  the   limitation set forth in Section 4.1 of the Credit Agreement, are guaranteed by and entitled to the   benefits of the Guaranty set forth in Article 4 of the Credit Agreement. Each Guarantor hereby   ratifies and confirms the terms and provisions of such Guarantor’s Guaranty and agrees that all of  such terms and provisions remain in full force and effect.         4.    Confirmation  of  Security  Interests.  Each  Loan  Party  (other  than the Special   Guarantors) hereby confirms and agrees that all indebtedness, obligations and liabilities of the   Loan Parties under the Credit Agreement as amended hereby, whether any such indebtedness,   obligations and liabilities are now existing or hereafter arising, due or to become due, absolute or   contingent,  or  direct  or  indirect,  constitute  “Secured  Obligations”  under  and  as  defined  in  the   Credit Agreement and are secured by the Collateral and entitled to the benefits of the grant of   security interests pursuant to Article 5 of the Credit Agreement. The Loan Parties (other than the   Special Guarantors) hereby ratify and confirm the terms and provisions of Article 5 of the Credit   Agreement and agree that, after giving effect to this Amendment, all of such terms and provisions   remain in full force and effect.          5.    No Default; Representations and Warranties, etc. The Loan Parties hereby confirm   that, after giving effect to this Amendment, (i) the representations and warranties of the Loan   Parties contained in Article 6 of the Credit Agreement and the other Loan Documents (A) that   contain a materiality qualification are true and correct on and as of the date hereof as if made on   such date (except to the extent that such representations and warranties expressly relate to an earlier   date), and (B) that do not contain a materiality qualification are true and correct in all material   respects  on  and  as  of  the  date  hereof  as  if  made  on  such  date  (except  to  the  extent  that  such   representations and warranties expressly relate to an earlier date), and (ii) no Default or Event of   Default shall have occurred and be continuing. Each Loan Party hereby further represents and   warrants that (a) the execution, delivery and performance by such Loan Party of this Amendment   (i) have been duly authorized by all necessary action on the part of such Loan Party, (ii) will not   violate any applicable law or regulation or the organizational documents of such Loan Party, (iii)   will not violate or result in a default under any indenture, agreement or other instrument binding   on such Loan Party or any of its assets that will have a Material Adverse Effect, and (iv) do not                                           9  

 

     require  any  consent,  waiver,  approval,  authorization  or  order  of,  or  filing,  registration  or   qualification with, any court or governmental authority or any Person (other than the Agent and   the Lenders) which has not been made or obtained; and (b) it has duly executed and delivered this   Amendment.          6.    Conditions  to  Effectiveness.  This  Amendment  shall  become  effective  upon  the   receipt by the Agent of all of the following:         (a)    counterparts  of  this  Amendment  duly  executed by  each  of  the  parties  hereto  or   written evidence reasonably satisfactory to the Agent that each of the parties hereto has signed a   counterpart of this Amendment;          (b)   duly completed and executed replacement Revolving Notes and Term Notes for the   account of each Revolving Lender and Term Lender requesting the same, to be delivered to such   Lender, where applicable, in exchange for such Lender’s existing Revolving Note and Term Note;          (c)   such documents and certificates as the Agent or Special Counsel may reasonably  request  relating  to  the  organization,  existence  and  good  standing  of  each  Loan  Party,  the  authorization of the transactions contemplated hereby and any other legal matters relating to the  Loan Parties, this Amendment or the other Loan Documents, all in form and substance reasonably  satisfactory to the Agent and Special Counsel;         (d)   evidence satisfactory to the Agent and its Special Counsel that the Loan Parties  (other than the Special Guarantors) shall have taken or caused to be taken (or authorized the Agent  to take or cause to be taken) all such actions, executed and delivered or caused to be executed and  delivered all such agreements, documents and instruments and made or caused to be made all such  filings and recordings (other than filings or recordings to be made by the Agent on or after the  Amendment No. 8 Effective Time) that may be necessary or, in the opinion of the Agent, desirable  in order to create in favor of the Agent, for the benefit of the Lenders, valid and (upon such filing   and recording) perfected First Priority security interests in the entire personal and mixed property   Collateral;          (e)   a  certificate,  dated  the  Amendment  No.  8  Effective  Time  and  signed  by  a   Responsible Officer, confirming compliance with the conditions set forth in the first sentence of   Section 5 of this Amendment at the Amendment No. 8 Effective Time;          (f)   favorable  written  opinions  (addressed  to  the  Agent  and  dated  the  Revolving   Amendment Effective Time) of (i) Morgan, Lewis & Bockius LLP, counsel to the Loan Parties,   in form and substance reasonably satisfactory to the Agent and Special Counsel and covering such   matters  relating  to  the  Loan  Parties, this Amendment, the other  Loan  Documents  or  the   transactions contemplated hereby as the Agent shall reasonably request and (ii) local counsel to   the  Loan  Parties  in  the  following  jurisdictions:  Arizona,  North  Carolina,  Nevada,  Kentucky,   Tennessee, Washington, and Ontario, Canada; and          (g)   payment by the Borrower to the Agent for the benefit of the Agent and the Lenders   of the amounts provided in a fee letter dated June 22, 2018, between the Borrower and the Agent.                                           10  

 

         7.    Miscellaneous.         (a)   Except to the extent specifically amended hereby, the Credit Agreement, the Loan  Documents and all related documents shall remain in full force and effect. This Amendment shall  constitute a Loan Document. Whenever the terms or sections amended hereby shall be referred to  in  the  Credit  Agreement,  Loan  Documents  or  such  other  documents  (whether  directly  or  by  incorporation into other defined terms), such defined terms shall be deemed to refer to those terms  or sections as amended by this Amendment.         (b)   This Amendment may be executed in any number of counterparts, each of which,  when executed and delivered, shall be an original, but all counterparts shall together constitute one  instrument. Delivery of an executed counterpart to this Amendment by telecopy or other electronic  means shall be effective as an original and shall constitute a representation that an original will be  delivered.         (c)   This  Amendment  shall  be  governed  by  the  laws  of  the  Commonwealth  of  Massachusetts and shall be binding upon and inure to the benefit of the parties hereto and their  respective successors and assigns.         (d)   The Loan Parties agree to pay all reasonable expenses, including legal fees and  disbursements, incurred by the Agent in connection with this Amendment and the transactions  contemplated hereby.                                                                         [Signature Pages Follow]                                                                                      11  

 

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment which shall  be deemed to be a sealed instrument as of the date first above written.                                   BORROWER                                                                AMERESCO, INC.                                 By:  /s/ John R. Granara, III __________________________                                    John R. Granara, III                                   Executive Vice President & Chief Financial Officer                                                                   GUARANTORS                                                                AMERESCO ENERTECH, INC.                                AMERESCO FEDERAL SOLUTIONS, INC.                                AMERESCO PLANERGY HOUSING, INC.                                AMERESCO QUANTUM, INC.                                AMERESCO SELECT, INC.                                AMERESCOSOLUTIONS, INC.                                APPLIED ENERGY GROUP INC.                                SIERRA ENERGY COMPANY                                 By:  /s/ John R. Granara, III __________________________                                    John R. Granara, III                                   Treasurer                                 AMERESCO SOUTHWEST, INC.                                                                                                By:  /s/ John R. Granara, III __________________________                                    John R. Granara, III                                   Vice President and Treasurer                                 E.THREE CUSTOM ENERGY SOLUTIONS, LLC,                                By: Sierra Energy Company, its sole member                                                                                                By:  /s/ John R. Granara, III __________________________                                    John R. Granara, III                                   Treasurer         [Signature Page to Amendment No. 8 to Third Amended Ameresco Credit and Security Agreement]  

 

                                         AMERESCO ASSET SUSTAINABILITY GROUP LLC                           AMERESCO CT LLC                           AMERESCO DELAWARE ENERGY LLC                           AMERESCO EVANSVILLE, LLC                           AMERESCO HAWAII LLC                           AMERESCO INTELLIGENT SYSTEMS, LLC                           AMERESCO LFG HOLDINGS LLC                           AMERESCO NAVY YARD PEAKER LLC                           AMERESCO PALMETTO LLC                           AMERESCO SOLAR, LLC                           AMERESCO SOLAR NEWBURYPORT LLC                           AMERESCO STAFFORD LLC                           SELDERA LLC                           SOLUTIONS HOLDINGS, LLC                                                      By: Ameresco, Inc., its sole member                                                                                 By:  /s/ John R. Granara, III __________________________                               John R. Granara, III                              Executive Vice President & Chief Financial Officer                            AMERESCO SOLAR – PRODUCTS LLC                           AMERESCO SOLAR – SOLUTIONS LLC                           AMERESCO SOLAR – TECHNOLOGIES LLC                           By: Ameresco Solar LLC, its sole member                           By: Ameresco, Inc., its sole member                                                                                 By:  /s/ John R. Granara, III __________________________                               John R. Granara, III                              Executive Vice President & Chief Financial Officer                     [Signature Page to Amendment No. 8 to Third Amended Ameresco Credit and Security Agreement]  

 

                                         AGENT:                                                      BANK OF AMERICA, N.A.                                                                                 By: _/s/ Mollie S. Canup________________________                                 Name: Mollie S. Canup                                Title: Vice President                                                                                 LENDERS:                                                      BANK OF AMERICA, N.A.                                                                                 By: _/s/ Luanne T. Smith ______________________                                Name: Luanne T. Smith                                Title: Vice President                                                                                 WEBSTER BANK, N.A.                                                                                 By: _/s/ Samuel C Pepe_________________________                                 Name: Samuel C Pepe                                Title: V.P.                                                                                 SUNTRUST BANK                                                                                 By: _/s/ Arize Agumadu________________________                                 Name: Arize Agumada                                Title: Vice President                               [Signature Page to Amendment No. 8 to Third Amended Ameresco Credit and Security Agreement]  

 

                                                                            Schedule 1.1(c)                             Agent and Lenders Notice Addresses                                                 Administrative Agent & Swingline Lender Office:   (For financial/loan activity – advances, pay down, interest/fee billing and payments, rollovers, rate- settings):  Charles Hensley  Mailcode: NC1-001-05-46  ONE INDEPENDENCE CENTER  101 N TRYON STREET  CHARLOTTE, NC 28255-0001  PHONE – 980-388-3225  FAX - 704-719-5362   EMAIL: charles.hensley@baml.com     Remittance Instructions: (See Admin Details Form for wiring instructions in applicable currencies)    LC Issuer’s Office:  (For fee payments due LC Issuer only and new LC requests and amendments):  Trade Operations  Mail Code: PA6-580-02-30  1 Fleet Way   Scranton, PA 18507  FAX: 800-755-8743  EMAIL: scranton_standby_LC@bankofamerica.com     Remittance Instructions:  Bank of America, N.A. Charlotte, NC  ABA #: 026-009-593 New York, NY  Account #: 04535-883980  Attn: Scranton Standby   Ref: AMERESCO INC & LC #     Other Notices as Administrative Agent:   (For financial statements, compliance certificates, maturity extension and commitment change notices,  amendments, consents, vote taking, etc.)  Bank of America – Gateway Village  Mail Code: NC1-026-06-03  900 West Trade Street  Charlotte NC 28255-0001  Attention: Mollie S. Canup  PHONE: 980-387-5449  FAX: 704.409.0011   EMAIL: mollie.s.canup@baml.com          

 

   Webster Bank Lender Office:  Webster Bank, N.A.  100 Franklin Street  Mail Code: BOS 105  Boston, MA 02110  Attention: Ann M. Meade, Senior Vice President  PHONE: 617-717-6832  FAX: 860-314-4844  EMAIL: Ameade@websterbank    Remittance Instructions:  Webster Bank, N.A.  ABA # 211170101  Account #: 19124483  Attn: Loan Support Services – Linda Angelillo  Ref: Incoming Wires – Commercial Loans      SunTrust Bank Lender Office:  SunTrust Bank  3333 Peachtree Street Road NE  Atlanta, GA 30326  Attention:  Arize Agumadu, Vice President  Phone: 404-836-6113  Email: Arize.Agumadu@suntrust.com  and  Attention:  James Thwaite  Phone: 404-836-6033  Email: James.Thwaite@suntrust.com    For remittance instructions and financial/loan activity – advances, pay down, interest/fee billing and  payments, rollovers, rate-settings):  SunTrust Bank  303 Peachtree Street NE, 25th Floor  Atlanta, GA 30308  Attention: James Wu  Phone: 404-588-7157  Fax: 844-278-8501  Email: James.Wu@suntrust.com                                                     

 

                                                                               Schedule 2.1                                 Lenders and Commitments     Revolving Credit Commitment              Lender                    Commitment               Applicable percentage        Bank of America, N.A.          $46,717,557.00               54.961832061%       Webster Bank, N.A.            $22,061,069.00               25.954198473%         SunTrust Bank               $16,221,374.00               19.083969466%     Total Revolving Credit                                       $85,000,000.00                  100%          Commitments:           Term Loan Commitment              Lender                    Commitment               Applicable percentage        Bank of America, N.A.          $25,282,443.00               54.961832061%       Webster Bank, N.A.            $11,938,931.00               25.954198473%         SunTrust Bank                $8,778,626.00               19.083969466%        Total Term Loan                                       $46,000,000.00                  100%          Commitments:     Swing Line Commitment              Lender                    Commitment               Applicable percentage       Bank of America, N.A.             $5,000,000                     100%          Total Swing Line                                         $5,000,000                     100%          Commitments:Exhibit

Exhibit 10.2 

EMPLOYMENT AGREEMENT 

This EMPLOYMENT AGREEMENT (the “Agreement”) made and effective as of June 4, 2018 (the “Effective Date”), by and between the MOHEGAN TRIBAL GAMING AUTHORITY d/b/a MOHEGAN GAMING & ENTERTAINMENT (the “Employer”), an instrumentality of THE MOHEGAN TRIBE OF INDIANS OF CONNECTICUT (the “Tribe”), a sovereign Indian nation, having an address of One Mohegan Sun Boulevard, Uncasville, Connecticut 06382, and DREW M. KELLEY, residing at 7 Nearwater Lane, Riverside, Connecticut 06878 (the “Executive”). 

WITNESSETH:

WHEREAS, the Employer owns and operates Mohegan Sun casino and resort in Uncasville, Connecticut, and Mohegan Sun Pocono in Plains Township, Pennsylvania with off-track wagering facilities located in Pennsylvania, manages and owns an interest in Resorts Casino in Atlantic City, New Jersey, developed and manages ilani Casino on the Cowlitz Reservation in Washington, is developer and manager and owns the Inspire Resort project in Seoul, South Korea, as well as owns investments in other proposed gaming enterprises and/or other gaming and entertainment businesses (as presently existing and hereafter developed, the “Business”); and 
WHEREAS, Executive has significant financial experience; and
WHEREAS, the Employer intends to employ Executive as the Senior Vice President and Chief Financial Officer and is desirous of assuring that Executive has the authority to fully carry out his duties hereunder. 

NOW, THEREFORE, in consideration of the promises and the mutual covenants, terms and conditions hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency whereof is specifically acknowledged, the parties hereto hereby agree as follows: 

1.Effective Date of this Agreement

This Agreement shall be effective from the Effective Date set forth in the opening paragraph of this Agreement, provided, however, that Executive shall have received all required gaming licenses from the State of Connecticut on or before the Effective Date.

2.Nature of Services and Duties

(A)      Employer hereby agrees to employ Executive as its Senior Vice President and Chief Financial Officer upon the terms set forth herein, and Executive hereby accepts such employment. 
(B)      Executive shall perform such duties and services of an executive, managerial and administrative nature as are customary for a chief financial officer of a similar entity and which, consistent with the foregoing, the Employer may from time to time through communication from the Chief Executive Officer hereafter assign to him.  Such duties shall include, but not be limited to: administering corporate financial functions, including review and evaluation of potential investment opportunities; supervising the financial accounting department, including all accounting, finance and reporting activities; overseeing treasury and cash management functions; and developing, evaluating and maintaining banking relationships.  Executive shall report exclusively to the Chief Executive Officer of the Employer. Executive shall carry out his responsibilities in accordance with and subject to the requirements of applicable laws, including applicable Tribal laws.  The Employer shall not materially restrict, reduce or otherwise limit Executive’s responsibility or authority without his consent, except for customary limits and protocols of authority established by the Employer consistent with past practice.   
(C)      Executive shall devote his full time best efforts and ability and all required business time to the performance of his duties and responsibilities hereunder to achieve the goals set forth in the Employer’s annual business 

1

plan. Executive shall perform all of his duties to the Employer faithfully, competently, and diligently.  Executive shall comply with Employer’s policies, as amended from time to time. 
(D)      To the fullest extent authorized or permitted by law, except for actions of the Executive that could be the basis for termination for Cause as set forth in Section 7(C), below, the Employer shall indemnify, defend, and hold Executive harmless, including the payment of reasonable attorney fees if the Employer does not directly provide Executive’s defense, from and against all claims made by anyone, including, but not limited to, a corporate entity, company, other employee, agent, patron, tribal member, or any member of the general public with respect to any claim that asserts as a basis, any acts, omissions, or other circumstances involving the performance of Executive of his duties and services under this Agreement.  
3.    Term
This Agreement shall govern Executive’s employment with the Employer from the Effective Date through and including March 31, 2021 (the “Initial Term”).  This Agreement shall automatically renew for additional terms of one (1) year (each a “Renewal Term” and together with the Initial Term, the “Term”) unless either party shall notify the other of its intention not to renew, or unless otherwise terminated as provided herein.  Any such notice of intention not to renew shall be delivered not later than one (1) year prior to the end of the Initial Term or Renewal Term, as the case may be, and shall be effective at the scheduled end of such Initial Term or Renewal Term, except as otherwise provided herein.

4.    Base Annual Salary; Sign-On Bonus; Relocation
 
(A)Commencing with the Effective Date and until September 30, 2019, the Employer shall pay Executive a Base Annual Salary in the amount of $700,000.00, payable in equal weekly installments of $13,461.54.  Commencing October 1, 2019, and on each October 1 thereafter during the Term of this Agreement, the Base Annual Salary shall be increased if, and in an amount, mutually agreed to by Executive and the Employer.  Executive shall be permitted to participate in and shall be eligible for all incentive compensation plans and benefits as available to executive-level employees at or below his level commencing in fiscal year 2019.  Any bonus paid under the Incentive Compensation Program will be at the discretion of the Management Board of the Employer.  Employer reserves the right to amend or withdraw any bonus and/or the Incentive Compensation Program at its absolute discretion.

(B)In connection with the execution of this Agreement, Executive will receive a sign-on payment in the amount of $300,000.00, which amount shall be subject to applicable withholding, payable on the Effective Date.  In the event that Executive resigns his position or is terminated for Cause as set forth in Section 7(C) within two (2) years after the Effective Date, Executive will be required to reimburse Employer the sign-on payment, less applicable withholding taxes paid on such amount.  In the event of such resignation or termination for Cause, the Employer is hereby authorized to deduct such amount from any wages or other amounts due and owing to Executive.  Executive’s obligations under this Section 4(B) shall survive any termination or expiration this Agreement and Executive’s employment hereunder.

(C)In connection with the execution of this Agreement, Executive will receive a monthly automobile allowance of $750.00 for a period of twenty-four (24) months, commencing with the first day of the month following the full execution of this Agreement.  On or before September 1, 2019, Executive will relocate to the area in close proximity to Mohegan Sun (for purposes hereof, “close proximity” includes, without limitation, New London, Hartford, Middlesex and New Haven counties, Connecticut).  In consideration of Executive receiving the monthly automobile allowance as aforesaid, Executive waives any rights or benefits available to Executive associated with Employer’s relocation program through XONEX or any other Employer programs or policies dealing with employee relocation.  In the event that Executive resigns his position or is terminated for Cause as set forth in Section 7(C), Executive will be required to reimburse Employer for any automobile allowance received during the one (1) year period prior to such resignation or termination for Cause.  In the event of such resignation or termination for Cause, Executive agrees to repay such amount to the Employer and the Employer is hereby authorized to deduct such amount from any wages or other amounts due and owing to Executive.  Executive’s obligations under this Section 4(C) shall survive any termination or expiration this Agreement and Executive’s employment hereunder.

2

5.    Life Insurance
 
The Employer may, within its discretion, at any time during the Term of this Agreement apply for and procure as owner and for its own benefit insurance on the life of Executive, in such amounts and in such form as the Employer may choose.  Executive shall have no interest whatsoever in any such policies, but he shall upon request by the Employer submit to such medical examinations, supply such information, and execute such documents as may be required by the Employer or the insurance companies to whom the Employer has made application. 
 
6.    Reimbursement of Certain Expenses; Vacation; Medical Benefits

(A)      The Employer will reimburse Executive for necessary and reasonable business expenses incurred by him in the performance of his duties hereunder, provided, that he shall obtain the approval for such expenditures in accordance with the procedures adopted by Employer from time to time and generally applicable to its executive-level employees, including such procedures with respect to submission of appropriate documentation and receipts.  Failure by Executive to follow such procedures shall entitle the Employer to refuse to reimburse Executive for such expenses until such time as such failure has been cured.  It is understood and agreed that Employer shall not be responsible for any expense of Executive for leasing or operation of a vehicle for Executive (except that Executive shall be entitled to receive the automobile allowance provided in Section 4(C) and to reimbursement for mileage expenses actually incurred in connection with his use of his automobile for the business-related purposes of the Employer), nor for any expense of Executive for legal expenses or tax planning expenses incurred by Executive in interpreting this or any other agreement between Executive and Employer. 

(B)      Executive shall be entitled to four (4) weeks paid personal time off (PTO) per full fiscal year of employment, subject to policies (e.g. relating to maximum accrual) as are now or may hereafter be adopted by Employer.

(C)      Executive shall participate in such employee benefit plans and programs (including but not limited to medical and life insurance programs) as are now or may hereafter be adopted by the Employer for its executive employees and their families, subject to any minimum employment period for eligibility. The life insurance program shall provide term life insurance coverage on Executive's life for the benefit of Executive's designated beneficiary in an amount not less than Executive's Base Annual Salary.  Employer shall continue to provide such medical insurance coverage for a period of one (1) year after any termination by Employer of Executive’s employment hereunder if such termination was without Cause, as hereinafter defined. 

7.    Disability; Termination 

(A)If Executive shall become unable to perform all of his duties set forth in Section 2 of this Agreement due to mental or physical disability, all compensation and benefits provided in this Agreement shall continue to be paid and provided in full for a period not exceeding one hundred and eighty (180) consecutive days. Upon completion of such one hundred and eighty (180) days (or if Executive shall be disabled by the same incapacity for an aggregate period of one hundred and eighty (180) days in any period of three hundred and sixty (360) consecutive days by the same incapacity) the Employer may, at its sole option, suspend Executive’s employment until Executive is recovered (as reasonably certified by a physician designated by the Employer) from such mental or physical disability. During any period of suspension on account of disability, Executive shall receive as compensation under this Agreement only such compensation as may be provided under the disability insurance described in Section 7(B).  If the physician designated by the Employer certifies that Executive is permanently disabled, Employer’s obligations under this Agreement shall cease; provided, however, Executive shall be entitled to the disability benefits set forth in Section 7(B). 

(B)Executive shall be entitled to participate in Employer’s disability insurance program as are now or may hereafter be adopted by the Employer for its employees subject to any minimum employment period for eligibility.  Such policy currently provides payment of 50% of Executive’s Base Annual Salary, commencing with suspension or termination of employment, pursuant to Section 7(A), above, by reason of physical or mental disability, and for a period of two (2) years if such disability was the result of injury and to age 65 if such disability was the result of physical or mental illness.  

3

(C)Subject to the provisions of this subsection (C), the Employer may terminate Executive’s employment for Cause, defined as (i) Executive’s violation of the Restrictive Covenants as defined in Section 10 of this Agreement, (ii) the loss, suspension, or revocation by the State of Connecticut, the Mohegan Tribal Gaming Commission, or any other gaming regulatory agency with jurisdiction over the Employer’s gaming operations and personnel, of Executive’s license for Class III and, as applicable, Class II gaming (“Executive’s Gaming License”) for a period of thirty (30) consecutive days, (iii) Executive’s conviction of any crime involving fraud, theft or moral turpitude, or (iv) Executive’s intentional or material breach of his obligations under this Agreement. Employer may suspend Executive without pay upon Executive’s loss or suspension of Executive’s Gaming License or his arrest for any alleged crime against the Employer or any of its affiliates.  In the event that Executive’s Gaming License is restored or if Executive is found not guilty or otherwise exonerated for an alleged crime against Employer or any of its affiliates, and Executive is not otherwise terminated for Cause as defined herein, Executive’s suspended pay shall be reimbursed to him. 

Except in the event of suspension upon Executive’s loss or suspension of Executive’s Gaming License or Executive’s arrest or termination upon conviction of a crime, if Employer desires to terminate Executive for Cause, Employer shall give written notice specifying the act(s) claimed to constitute cause and specifying an effective date of termination, which date shall be no sooner than thirty (30) days after the giving of such notice; provided, that nothing herein shall prevent Employer from suspending Executive, with pay, from all operational functions and from access to Employer’s facilities upon giving such written notice. Employer may, in its sole discretion, give Executive an opportunity to rectify the reasons for termination. In the event Executive fails to rectify the act(s) claimed to constitute cause as set forth in the notice of termination, Executive’s employment with the Employer shall cease effective upon the date provided in the notice of termination. If such termination is for Cause, then Executive shall not be entitled to any further compensation from and after the date of termination. 

(D)Subject to the provisions of this subsection (D), the Employer may terminate Executive’s employment other than for Cause, as defined above. In the event of termination other than for Cause, Executive shall be paid, (i) on the date of such termination, a relocation payment in the amount of $15,000.00, which amount shall be subject to applicable withholding, and (ii) following such termination, his Base Annual Salary for a period of twelve (12) months from the date of termination; provided that such Base Annual Salary shall be payable to Executive in the same amount and at the same intervals as would have been paid had his employment continued.  

(E)In the event that Executive voluntarily terminates his employment hereunder, Executive’s employment shall cease as of the date provided in Executive’s notice to Employer of his voluntary termination, and thereafter, provided that the Employer shall not then be in material breach of this Agreement, Executive shall not be entitled to any further compensation hereunder. 

8.    Covenants of Executive Not to Compete 

Executive acknowledges that, as of the date of this Agreement, Employer’s Business includes all of the gaming facilities listed in the preamble to this Agreement and that Employer intends to develop additional gaming properties and interests.  Executive acknowledges and agrees that:  (i) his services to the Employer are special and unique; (ii) his work for the Employer has given him and will continue to give him access to confidential information concerning the Employer, its strategies, and the Business; (iii) he has the means to support himself and his dependents other than by engaging in the Business of the Employer and the provisions of this Section 8 will not impair such ability; (iv) that competing with Employer within the Restricted Areas and within the Restricted Period, as defined herein, would give Executive or any entity with which he might become affiliated an unfair competitive advantage, to the detriment of the Employer;  and (v) that the Employer’s undertakings herein, including but not limited to the provisions of Sections 4 and 7(A), (B), and (D), provide sufficient consideration for his acceptance of the restrictive covenants set forth herein.  Accordingly, in order to induce the Employer to enter into this Agreement, Executive covenants and agrees that: 

(A)     The geographic areas within which Executive shall not compete include the states of New York, New Jersey, Pennsylvania, Connecticut, Massachusetts, Rhode Island, Vermont, New Hampshire, and Maine and a radius of one hundred twenty five (125) statute miles from any site in which the Employer holds, has an application pending for, or has formed a plan made by or disclosed to Executive by Employer while Executive is employed by Employer, to apply for, a gaming license, whether as a ‘qualifier’ or a ‘principal’ (the “Restricted Area”).
 

4

(B)     The period of the restrictive covenant shall include all times in which Executive is employed by Employer and a period of twelve (12) months following the expiration or termination of his employment for any reason including Executive’s voluntary termination (the “Restricted Period”).

(C)     During the Restricted Period and in the Restricted Area, Executive shall not, without the express written permission of the Employer, accept any offer of employment, nor shall he perform services for any entity engaged in casino gaming, nor shall he compete in any manner, either directly or indirectly, including, without limitation, as an employee or independent contractor, investor, partner, shareholder, officer, director, principal, agent or trustee, of any entity which competes with any Business in which Employer is engaged during any period of Executive’s employment by Employer.  This restriction shall not bar Executive from ownership of less than five percent (5%) of the shares of a publicly traded corporation engaged in casino gaming.
 
(D)      During the Restricted Period, Executive shall not, directly or indirectly, hire or solicit any employee of the Employer or any of its affiliates or encourage any such employee to leave such employment. 

(E)      Executive’s obligations under this Section 8 shall survive any termination or expiration of this Agreement and Executive’s employment hereunder.

(F)      The Employer shall have the right to notify, without liability to Executive, any person or entity that employs or seeks to employ or retain Executive during or after the period of Executive’s employment by Employer (but within the Restricted Period) of the restrictions set forth in this Agreement.  

9.    Confidential Information 

Executive agrees to receive Confidential Information (as hereinafter defined) of the Employer in confidence, and not to disclose to others, assist others in the application of, or use for his own gain, such information, or any part thereof, unless and until it has become public knowledge, has come into the possession of such other or others by legal and equitable means, or if required to do so by order of a court of competent jurisdiction. Executive further agrees to take and maintain all reasonable efforts to protect Confidential Information from disclosure to persons or entities other than those engaged in the furtherance of Employer’s Business. Executive further agrees that, upon termination of his employment with the Employer, all documents, records, notebooks and similar repositories of or containing Confidential Information, including any computer devices, cell phones, laptops, digital storage devices, and similar technological devices that contain any Confidential Information, including copies thereof, then in Executive’s possession, whether prepared by him or others, will be left with or returned to the Employer. For purposes of this Section 9, “Confidential Information” means information disclosed to Executive or known by Executive as a consequence of or arising from or out of his employment by the Employer, not generally known in the industry in which the Employer is or may become engaged about the Employer’s Business, products, processes and/or services.  Executive’s obligations under this Section 9 shall survive any termination or expiration of this Agreement and Executive’s employment hereunder. 

10.    Rights and Remedies Upon Breach 

Executive acknowledges and agrees that a violation of any provision of Sections 8 or 9 of this Agreement (the “Restrictive Covenants”) shall cause irreparable harm to the Employer and the Employer shall be entitled to specific performance of this Agreement or an injunction without proof of special damages, together with costs and attorney’s fees incurred by the Employer in enforcing its rights under this Agreement.  If Executive breaches, or threatens to commit a breach of any of the Restrictive Covenants, the Employer shall have the following rights and remedies, each of which rights and remedies shall be independent of the other and severally enforceable, and all of which rights and remedies shall be in addition to, and not in lieu of, any other rights and remedies available to the Employer under law or in equity: 

(A)      The right and remedy to have the Restrictive Covenants specifically enforced by any court of competent jurisdiction including, without limitation the right to entry against Executive of restraining orders and injunctions (preliminary, mandatory, temporary and permanent), without proof of special damages, against violations of such covenants, threatened or actual, and whether or not then continuing, it being acknowledged and agreed that any such breach or threatened breach will cause irreparable injury to the Employer and that money damages will not provide an adequate remedy to the Employer; and 

5

(B)      The right and remedy to require Executive to account for and pay over to the Employer all compensation, profits, monies, accruals, increments or other benefits derived or received by Executive during the period of any breach of the Restrictive Covenants. The Employer may set off any amounts due it under this Section 10(B) against any amounts owed to Executive under Sections 4 or 7. 

11.    Notice 

All notices hereunder shall be in writing. Any notice, request, information, legal process, or other instrument to be given or served hereunder by any party to another shall be deemed given or served hereunder by any party to the other if either delivered personally or sent by prepaid registered or certified mail, return receipt requested. Any such notice to the Employer shall be sent to the address set forth in the introductory paragraph of this Agreement to the attention of the Chief Executive Officer of the Employer with a copy to the Senior Vice President/General Counsel of the Employer. Any such notice to Executive shall be sent to his then current residential address on file with Employer’s Human Resources Department. Either party may, through written notice to the other party, change the address of notice as provided in this Section. 

12.    Entire Agreement; Modification 

Except as otherwise provided herein, this Agreement supersedes and cancels any and all prior agreements between the parties hereto, express or implied, relating to the subject matter hereof.  This Agreement sets forth the entire agreement of the parties hereto with respect to the subject matter hereof. This Agreement may not be changed, modified, amended or altered except in a writing signed by both parties. 

13.    Non-Waiver 

The failure or refusal of either party to insist upon the strict performance of any provision of this Agreement or to exercise any right in any one or more instances or circumstances shall not be construed as a waiver or relinquishment of such provision or right and shall in no way effect such provision or right, nor shall such failure or refusal be deemed a custom or practice contrary to such provision or right. 

14.    Severability 

If any section, paragraph, term or provision of this Agreement shall be held or determined to be unenforceable, the balance of this Agreement shall nevertheless continue in full force and unaffected by such holding or determination. In addition, in any such event, the parties agree that it is their intention and agreement that any such section, paragraph, term or provision which is held or determined to be unenforceable as written, shall nonetheless be enforced and binding to the fullest extent permitted by law as though such section, paragraph, term or provision had been written in such a manner to such an extent as to be enforceable under the circumstances.  Without limitation of the foregoing, with respect to any restrictive covenant contained herein, if it is determined that any such provision is excessive as to duration or scope, the parties hereto agree that any court of competent jurisdiction over them shall be authorized and empowered to enforce the restrictive covenant for such shorter duration or with such narrower scope as will render it enforceable to the greatest extent permissible under applicable law. 

15.    Governing Law 

This Agreement shall be construed in accordance with the laws of the State of Connecticut without regard to its conflict of laws’ provisions. 

16.    Dispute Resolution 

Except for actions by Employer for enforcement against Executive of the Restrictive Covenants set forth in this Agreement, any disagreement or dispute between the parties as to the interpretation of this Agreement or any rights or obligations arising hereunder, including, without limitation, the arbitrability of any dispute, shall be resolved exclusively by binding arbitration in accordance with the then prevailing rules of the American Arbitration Association (or any successor thereto to the extent not inconsistent herewith), upon notice to the other party of its intention to do 

6

so. The parties agree that any such arbitration shall be confidential and that in any such arbitration each party shall be entitled to discovery as provided by the Federal Rules of Civil Procedure. All hearings shall be conducted in Hartford County, Connecticut, commencing within fifteen (15) days after the arbitrator is selected and shall be conducted in the presence of the arbitrator.  The decision of the arbitrator will be final and binding on the parties. The costs and expenses of the arbitration shall be shared equally by the parties.  No demand for arbitration shall be submitted to the arbitral forum unless and until the party asserting the existence of a dispute has given notice to the other party of the grounds therefor, and the parties have met and conferred in an effort to resolve the dispute; provided that the demand for arbitration shall not be delayed more than thirty (30) days after notice of the dispute is provided.  

17.    No Jury Trial

The parties agree that no dispute arising from or out of this Agreement shall be tried to a jury in any court or forum having jurisdiction over the parties.  

18.    Gaming Disputes Court Jurisdiction 

In the event of any action to enforce the Restrictive Covenants under this Agreement, or any action to enforce the requirement that the parties submit disputes to arbitration or to enforce or overturn an arbitration decision, as provided in Section 16, the parties agree to submit to any tribal, state or federal court having personal and subject matter jurisdiction.  The parties further agree that the Mohegan Gaming Disputes Court shall be used as a forum only if a state or federal court denies jurisdiction to (a) enforce the requirement that the parties submit disputes to arbitration and (b) enforce or overturn an arbitration decision. 

19.    Limited Waiver of Sovereign Immunity 

The Employer hereby waives its sovereign immunity from arbitration for claims by the Executive for the enforcement of this Agreement and any remedies for breach thereof, and waives its sovereign immunity from suit to enforce or set aside an arbitration award.  Nothing herein shall limit the Executive’s right to proceed with any claims otherwise allowed under the laws of the Tribe.  The Employer hereby consents to personal jurisdiction and venue in any court of the State of Connecticut, any federal court sitting in the State of Connecticut, and the Mohegan Gaming Disputes Court for the purposes set forth herein, and hereby waives any claim that it may have that such court is an inconvenient forum for the purposes of any proceeding arising under this Agreement as aforesaid and, with respect to a proceeding in a court of the State of Connecticut or a federal court sitting in the State of Connecticut, any requirement that tribal remedies be exhausted. 

20.    Headings 

The headings of this Agreement are inserted for convenience only and shall not be considered in construction of the provisions hereof. 

21.    Assignment and Successors; Binding Effect 

The rights and obligations of the Employer under this Agreement shall inure to the benefit of and shall be binding upon the successors of the Employer and may be assigned by the Employer, for all or any part of the Term hereof, provided that the Employer shall continue to be financially responsible to Executive hereunder. Executive shall have no right to assign, transfer, pledge or otherwise encumber any of the rights, or to delegate any of the duties created by this Agreement without prior written consent of the Employer.  Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the Employer, its successors and assigns, and Executive, his heirs and legal representatives. 

[Balance of page intentionally left blank]

7

IN WITNESS WHEREOF, the Employer has caused this Agreement to be executed by the Chief Executive of the Employer and Executive has affixed his signature hereto on the date and year first above written. 
	
												
	EMPLOYER:
	 
	 
	 
	EXECUTIVE:

	

Mohegan Tribal Gaming Authority d/b/a
Mohegan Gaming & Entertainment
	 
	 

	By:
	 
	/s/ Mario C. Kontomerkos
	 
	 
	 
	/s/ Drew M. Kelley

	 
	 
	Mario C. Kontomerkos
	 
	 
	 
	Drew M. Kelley

	 
	 
	Chief Executive Officer
	 
	 
	 
	 

STATE OF CONNECTICUT    )
         )  ss. Uncasville            August 3, 2018
COUNTY OF NEW LONDON)

Personally, appeared Mario C. Kontomerkos, Chief Executive Officer of the MOHEGAN TRIBAL GAMING AUTHORITY, an instrumentality of the Mohegan Tribe Indians of Connecticut, signer and sealer of the foregoing instrument, and acknowledged the same to be his free act and deed and the free act and deed of the Mohegan Tribal Gaming Authority, before me. 
	
	
	/s/ Helga M. Woods

	Commissioner of Superior Court

STATE OF CONNECTICUT    )
         )  ss. Uncasville            August 7, 2018
COUNTY OF NEW LONDON)

Personally, appeared DREW M. KELLEY, signer and sealer of the foregoing, instrument, and acknowledged the same to be his free act and deed, before me.  
	
	
	/s/ Helga M. Woods

	Commissioner of Superior Court

  

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00286-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00286-of-00352.parquet"}]]