Document:

Exhibit 10.2

 

SEPARATION AND RELEASE AGREEMENT

 

This Separation and
Release Agreement (the “Agreement”) is made and entered into on November 18, 2014 (the “Effective Date”)
and confirms the following understandings and agreements between Lipocine (“Lipocine” or the “Company”)
and Gerald T. Simmons (hereinafter referred to as “you” or “your”).

 

WHEREAS, you were employed
as Lipocine’s Corporate Business Development Officer by Lipocine (your “Employment”) pursuant to an Employment
Agreement dated effective January 7, 2014 (your “Employment Agreement”);

 

WHEREAS, in connection
with your Employment, you entered into an Employee Inventions and Proprietary Rights Assignment Agreement dated May 1, 2003 (your
“Inventions Agreement”) and on January 9, 2014 you signed an Employee Acknowledgment Form (your “Acknowledgement
Form”);

 

WHEREAS, your Employment
was terminated by Lipocine effective November 28, 2014 (the “Separation Date”);

 

WHEREAS, you and Lipocine
desire to fully and finally settle all issues, differences, and claims, whether potential or actual, between you and Lipocine,
including, but not limited to, any claims that might arise out of your Employment with Lipocine or the termination of your Employment
with Lipocine;

 

WHEREAS, in connection
with the separation from your Employment, you and Lipocine now desire to enter into this Agreement, which sets forth a mutually
satisfactory arrangement concerning, among other things, separation from your employment and payment of a severance to which you
would otherwise not be entitled.

 

NOW, THEREFORE, in
consideration of the foregoing recitals and the promises set forth herein and for other good and valuable consideration, the receipt
and sufficiency are hereby acknowledged, you and Lipocine, intending to be legally bound, agree as follows:

 

1.            Employment Status and Effect
of Separation.

 

 (a)          You and Lipocine hereby acknowledge the termination of your Employment and the termination of any position you held or hold at Lipocine, effective as of the Separation Date. From and after the Separation Date, you agree not to represent yourself as being an employee, officer, director, agent or representative of Lipocine for any purpose.

 

(b)          The Separation Date shall be
the termination date of your Employment for purposes of participation in and coverage under all benefit plans and programs sponsored
by or through Lipocine. In connection with your separation, you will be entitled to receive amounts payable to you under any retirement
and fringe benefit plans maintained by Lipocine and in which you participate in accordance with the terms of each such plan and
applicable law.

 

    	 

    	 

    

 

(c)            You acknowledge
and agree that all of the payment(s) and other benefits you have received as of the Effective Date or are payable pursuant to Section
2(a) of this Agreement are in full discharge and satisfaction of any and all liabilities and obligations of Lipocine or any of
its direct or indirect parent(s), subsidiaries, and/or affiliates (collectively, the “Company Group”) to you,
monetarily or with respect to employee benefits or otherwise, including but not limited to any and all obligations arising under
any alleged written or oral employment agreement, policy, plan or procedure of Lipocine or any other member of the Company Group
and/or any alleged understanding or arrangement between you and Lipocine or any other member of the Company Group.

 

2.            Release and Waiver of Claims.

 

(a)            Lipocine will pay you, as a
severance payment, a total sum of Ninety Two Thousand Three Hundred Fifty One Dollars and 04/100 ($92,351.04), which amount is
computed as provided in your Employment Agreement (the “Consideration”). In addition, Lipocine is paying you,
as earned paid time off, a total sum of Thirty Three Thousand Seven Hundred and Sixty Six Dollars and 18/100 ($33,766.18). The
Consideration will be paid to you in one lump sum, less applicable deductions and withholdings for state and federal taxes, within
two (2) business days after the expiration of the Revocation Period, provided that you do not revoke this Agreement. However in
accordance with your Employment Agreement you may elect to defer your Consideration for up to 60 days. You acknowledge that the
Consideration represents monies to which you would not be entitled but for this Agreement.

 

(b)             For and in consideration of
the Consideration, and for other good and valuable consideration set forth herein, you, for and on behalf of yourself and your
heirs, administrators, executors and assigns, effective the date hereof, do fully and forever release, remise and discharge Lipocine
and each member of the Company Group, and each of their direct and indirect parents, subsidiaries and affiliates, together with
their respective officers, directors, partners, shareholders, employees, attorneys and agents (collectively, the “Company
Parties”), from any and all claims whatsoever up to the Effective Date which you had, may have had, or now have against
the Company Parties, for or by reason of any matter, cause or thing whatsoever, including without limitation any claim arising
out of or attributable to your Employment or the termination of your Employment with Lipocine or any member of the Company Group
whether for contract, tort, breach of express or implied employment contract, intentional infliction of emotional distress, wrongful
termination, failure to hire, re-hire, or contract with as an independent contractor, unjust dismissal, defamation, libel or slander,
or under any federal, state or local law dealing with discrimination based on age, race, sex, national origin, handicap, religion,
disability or sexual orientation. This release of claims includes, but is not limited to, all claims arising under the Civil Rights
Act of 1866, 42 U.S.C. §1981 et seq.; the Civil Rights Act of 1964, 42 U.S.C. §2000 et seq.; the Civil
Rights Act of 1991; the Rehabilitation Act of 1973, 29 U.S.C. §701 et seq.; the Americans with Disabilities Act, 42
U.S.C. §1201 et seq.; the Family and Medical Leave Act, 29 U.S.C. §2601 et seq.; the National Labor Relations
Act, 29 U.S.C. §151 et seq.; the Fair Labor Standards Act, 29 U.S.C. §201 et seq.; the Vietnam Era Veterans’
Readjustment Assistance Act of 1974; the Employee Retirement Income Security Act of 1974, 29 U.S.C. §1001 et seq.,
the Occupational Safety and Health Act, 29 U.S.C. §651 et seq.; the Worker Adjustment and Retraining Notification Act,
29 U.S.C. §2101, et seq.; the Fair Credit Reporting Act, 15 U.S.C. §1681 et seq.; the Age Discrimination in Employment
Act of 1967, 29 U.S.C. §621 et seq.; the Equal Pay Act; the Utah Fair Employment and Housing Act; the Utah Family Rights
Act; and any other federal, state, or local human or civil rights, wage-hour, pension or labor law, rule and/or regulation, each
as may be amended from time to time, and all other federal, state and local laws, the common law and any other purported restriction
on an employer’s right to terminate the employment of employees. As used in this Agreement, the term “claims”
will include all claims, covenants, warranties, promises, undertakings, actions, suits, causes of action, obligations, debts, accounts,
attorneys’ fees, judgments, losses and liabilities, of whatsoever kind or nature, in law, equity or otherwise. The parties
intend the release contained herein to be a general release of any and all claims to the fullest extent permitted by applicable
law.

 

    	 

    	 

    

 

(c)            You acknowledge
and agree that as of the Effective Date you have no knowledge of any facts or circumstances that give rise to or could give rise
to any claims under any of the laws listed in the preceding paragraph.

 

(d)            Nothing contained in this Section
2 shall be a waiver of any claims that cannot be waived by law.

 

(e)            Without limiting the scope of
the release herein, the release also includes, without limitation, any claims or potential claims against any of the Company Group
for wages, earned vacation, paid time off, bonuses, expenses, and benefits earned through the date of the execution of this Agreement.
Such amounts are not consideration for this Agreement.

 

3.            Opportunity for Review; Acceptance.
You have until 21 days after the Effective Date (the “Review Period”) to review and consider this Agreement.
To accept this Agreement, and the terms and conditions contained herein, prior to the expiration of the Review Period, you must
execute and date this Agreement where indicated below and return the executed copy of the Agreement to Lipocine. In the event of
your failure to execute and deliver this Agreement prior to the expiration of the Review Period, this Agreement will be null and
void and of no effect, and neither Lipocine nor any member of the Company Group will have any obligations hereunder. By execution
of this Agreement, you expressly waive any and all rights or claims arising under the Age Discrimination in Employment Act of 1967
(“ADEA”) and: (a) You acknowledge that this waiver of rights or claims arising under the ADEA is in writing, and is
knowing, voluntary and understood by you; (b) You expressly understand that this waiver specifically refers to rights or claims
arising under the ADEA; (c) You expressly understand that by execution of this Agreement, you do not waive any rights or claims
under the ADEA that may arise after the date the waiver is executed; (d) You acknowledge that the waiver of rights or claims arising
under the ADEA is in exchange for the Consideration, which is above and beyond that to which you are entitled; (e) You acknowledge
that Lipocine is expressly advising you to consult with an attorney of your choosing prior to executing this Agreement; (f) You
have been advised by Lipocine that you are entitled to up to twenty-one (21) days from receipt of this Agreement within which to
consider this Agreement, which period is referred to as the Review Period; (g) You acknowledge that you have been advised by Lipocine
that you are entitled to revoke (in the event you execute this Agreement) this waiver of rights or claims arising under the ADEA
within seven (7) days after executing this Agreement and that said waiver will not be, and does not become, effective or enforceable
until the seven (7) day revocation period has expired (the “Revocation Period”); (h) The parties agree that should
you exercise your right to revoke the waiver under subparagraph (g) hereof, this entire Agreement, and its obligations, including,
but not limited to the obligation to provide you with Consideration and any other benefits, are null, void and of no effect; (i)
You acknowledge and agree that you will communicate your decision to accept or reject this Agreement to Lipocine as provided herein;
and (j) nothing in this Agreement shall be construed to prohibit you from filing a charge or complaint, including a challenge to
the validity of the waiver provision of this Agreement, with the Equal Employment Opportunity Commission or participating in any
investigation conducted by the Equal Employment Opportunity Commission, though you have waived any right to monetary relief. Should
you elect to revoke this Agreement within the Revocation Period, a written notice of revocation shall be delivered to Lipocine
Inc., Attn: Morgan Brown Chief Financial Officer, 675 Arapeen Drive, Suite 202, Salt Lake City, UT 84108.

 

    	 

    	 

    

 

4.            Other Agreements.
Your duties and obligations pursuant to the Inventions Agreement signed by you shall survive this Agreement and remain in full
force and effect, and the Consideration herein constitutes consideration for your promises and obligations pursuant to these agreements.

 

5.            Confidential
Information. You recognize and acknowledge that Lipocine’s business and continued success depends upon the use and protection
of confidential and proprietary business information, including, without limitation, the information and technology developed by
or available through licenses to any member of the Company Group to which you had access during your Employment (all such information
being “Confidential Information”). The phrase Confidential Information will be interpreted to include all information
of any sort (whether merely remembered or embodied in a tangible or intangible form) that is (i) related to any member of the Company
Group’s or its subsidiaries’ or affiliates’ (including their predecessors) current or potential business and
(ii) not generally or publicly known. Confidential Information includes, without limitation, the information, observations and
data obtained by you while employed by any member of the Company Group and its subsidiaries (or any of their predecessors) or while
performing services hereunder concerning the business or affairs of any member of the Company Group or any of its subsidiaries
or affiliates, the identities of the current, former or prospective employees, suppliers and customers of any member of the Company
Group or its subsidiaries, development, transition and transformation plans, methodologies and methods of doing business, clinical
information, research and development information, regulatory information and correspondence, other correspondence, strategic,
marketing and expansion plans, financial and business plans, financial data, pricing information, employee lists and telephone
numbers, business development and market research information, locations of sales representatives, new and existing customer or
supplier programs and services, customer terms, customer service and integration processes, requirements and costs of providing
service, support and equipment and trade secrets. Provided, however, that the phrase does not include information that (a) was
lawfully in your possession prior to disclosure of such information to you by any member of the Company Group; (b) was, or
at any time becomes, available in the public domain other than through a violation of this Agreement; (c) is documented by
you as having been developed by you outside the scope of your rendering services hereunder and independently; or (d) is furnished
to you by a third party not under an obligation of confidentiality to Lipocine or any other member of the Company Group. You agree
that you will not directly or indirectly use or divulge, or permit others to use or divulge, any Confidential Information for any
reason, except as authorized in writing by Lipocine. You will be allowed to disclose such information of the Company or any member
of the Company Group to the extent that such disclosure is:

 

    	 

    	 

    

 

(a)             duly approved
in writing by the Company or by the member of the Company Group;

 

(b)             necessary for
you to enforce your rights under this Agreement in connection with a legal proceeding; or

 

(c)             required by
law or by the order of a court or similar judicial or administrative body, provided that you notify the Company of such required
disclosure promptly and cooperate with the Company in any lawful action to contest or limit the scope of such required disclosure.

 

Your obligations under
this Agreement are in addition to any obligations you have under state or federal law and under the Inventions Agreement. You agree
that you will not violate in any way the rights that Lipocine or any other member of the Company Group has with regard to trade
secrets or proprietary or Confidential Information. Your obligations under this Section 5 are indefinite in term.

 

6.            Inventions
and Patents. For purposes of this Agreement, “Inventions” includes, without limitation, information, inventions,
contributions, improvements, ideas, or discoveries, whether protectable or not, made while performing services during your Employment.
Accordingly, you will:

 

(a)             make adequate
written records of such Inventions, which records will be the Company’s property;

 

(b)             assign to the
Company, at its request, any rights you may have to such Inventions for the U.S. and all foreign countries;

 

(c)             waive and agree
not to assert any moral rights you may have or acquire in any Inventions and agree to provide written waivers from time to time
as requested by the Company; and

 

(d)             assist the
Company (at the Company’s expense) in obtaining and maintaining patents or copyright registrations with respect to such Inventions.

 

You understand and
agree that the Company or its designee will determine, in its sole and absolute discretion, whether an application for patent will
be filed on any Invention that is the exclusive property of the Company, as set forth above, and whether such an application will
be abandoned prior to issuance of a patent.

 

    	 

    	 

    

 

You hereby irrevocably
designate and appoint Lipocine and its duly authorized officers and agents as your agent and attorney in fact, which appointment
is coupled with an interest, to act for and in your behalf to execute, verify and file any such documents and to do all other lawfully
permitted acts to further the purposes of Sections 6 and 7 of this Agreement with the same legal force and effect as if executed
by you. You hereby waive and quitclaim to Lipocine any and all claims, of any nature whatsoever, which you now or may hereafter
have for infringement of any proprietary rights assigned hereunder to Lipocine.

 

You further agree that
you will promptly disclose in writing to the Company for one (1) year, all such Inventions so that your rights and the Company’s
rights in such Inventions can be determined. You represent and warrant that you have no Inventions, software, writings or other
works of authorship useful to the Company or any member of the Company Group in the normal course of its business, which were conceived,
made or written prior to the date of this Agreement and which are excluded from the operation of this Agreement.

 

The
provisions of this Section 6 shall not apply to any Invention meeting the following conditions:

 

(a)           such
Invention was developed entirely on your own time;

 

(b)           such
Invention was not conceived, developed, reduced to practice, or created by you: (i) within the scope of your service; (ii) on the
Company’s time; or (iii) with the aid, assistance, or use of any of the Company’s property, equipment, facilities,
supplies, resources, or intellectual property; or

 

(c)           such Invention
does not relate (i) directly to the industry or trade of the Company or (ii) to the Company’s current or demonstrably
anticipated business, research or development.

 

7.            Work
Product and Copyrights. You agree that all right, title and interest in and to the materials resulting from the performance
of your duties during your Employment and all copies thereof, including works in progress, in whatever media, (the “Work”),
remains in and is owned by the Company or any member of the Company Group from their creation. You further agree:

 

(a)           to the extent
that any portion of the Work constitutes a work protectable under the copyright laws of the United States (the “Copyright
Law”), that all such Work will be considered a “work made for hire” as such term is used and defined in the
Copyright Law, and that the Company or any member of the Company Group will be considered the “author” of such portion
of the Work and the sole and exclusive owner throughout the world of copyright therein; and

 

(b)           if any portion
of the Work does not qualify as a “work made for hire” as such term is used and defined in the Copyright Law, that
you hereby assign and agree to assign to the Company or any member of the Company Group, without further consideration, all right,
title and interest in and to such Work or in any such portion thereof and any copyright therein and further agrees to execute and
deliver to the Company or any member of the Company Group, upon request, appropriate assignments of such Work and copyright therein
and such other documents and instruments as the Company may request to fully and completely assign such Work and copyright therein
to the Company, its successors or nominees, and that you hereby appoint the Company as attorney-in-fact to execute and deliver
any such documents on your behalf in the event you should fail or refuse to do so within a reasonable period following the Company’s
request.

 

    	 

    	 

    

 

8.
            Non-solicitation. For a period expiring two (2) years after the Effective Date, you covenant and agree that you
will not:

 

(a)            Hire, offer
to hire, entice away or in any other manner persuade or attempt to persuade any customer, officer, employee or agent of any member
of the Company Group or any of its affiliates to alter or discontinue a relationship with any member of the Company Group or to
do any act that is inconsistent with the interests of any member of the Company Group or any of its affiliates;

 

(b)            Directly or
indirectly solicit, divert, take away or attempt to solicit, divert or take away any customers or potential customers of any member
of the Company Group or any of its affiliates, including without limitation anyone who during your Employment engaged in discussions
with any member of the Company Group for the purchase of products or services; or

 

(c)            Directly or
indirectly solicit, divert, or in any other manner persuade or attempt to persuade any supplier or vendor of any member of the
Company Group or any of its affiliates to alter or discontinue its relationship with any member of the Company Group or any of
its affiliates.

 

Because the members
of the Company Group do business with customers throughout the United States and around the world, there is no geographic limitation
to this Section 8.

 

The Company and you
agree that: this provision does not impose an undue hardship on you and is not injurious to the public; that this provision is
necessary to protect the business of any member of the Company Group and its affiliates; the nature of your responsibilities with
any member of the Company Group under this Agreement require you to have access to confidential information which is valuable and
confidential to any member of the Company Group; the scope of this Section 8 is reasonable in terms of length of time and geographic
scope; and adequate consideration supports this Section 8, including the consideration exchanged herein.

 

9.            Non-Disparagement.
Following the Effective Date, you agree to refrain
from making any statement, directly or indirectly that is false, disparaging, misleading or untrue, either oral or written,
whether public or private, regarding Lipocine or any other members of the Company Group or any of the Company Parties. You
further agree that you will not at any time disparage or defame Lipocine or any other members of the Company Group or any of
the Company Parties or any of their respective reputations in any way. You further agree not to serve as an expert witness
adverse to Lipocine in any investigations or legal proceedings or disparage any member of the Company Group or any of the
Company Parties to any future employer or party engaging you as a consultant. Nothing in this Agreement shall be construed to
prohibit you from filing a charge or complaint, including a challenge to the validity of the waiver provision of this
Agreement, with the Equal Employment Opportunity Commission or participating in any investigation conducted by the Equal
Employment Opportunity Commission, though you have waived any right to monetary relief, or otherwise complying with your
obligations to provide truthful testimony or information as required by a court or by statute.

 

    	 

    	 

    

 

For its part, Lipocine, agrees and
agrees to cause its officers and directors, not to directly or indirectly make any false, disparaging, misleading or untrue
statement, either oral or written, whether public or private, regarding you or your employment.  Lipocine, for itself and
its officers and directors further agrees that it will not at any time disparage or defame you or your reputation in any way.
Notwithstanding anything herein to the contrary, Lipocine, and its officers and directors may adhere to a policy of not commenting
on your prior employment when asked by third parties and such policy shall not be deemed a violation of this Section 9.

 

10.            Knowing and Voluntary Waiver.
You expressly acknowledge and agree that (a) you are able to read the language, and understand the meaning and effect, of this
Agreement; (b) are specifically agreeing to the terms of the release contained in this Agreement because Lipocine has agreed to
pay you the Consideration, which Lipocine has agreed to provide because of your agreement to accept it in full settlement of all
possible claims you might have or ever had, and because of your execution, of this Agreement; (c) acknowledge that but for your
execution of this Agreement, you would not be entitled to the Consideration; (d) were advised to consult with your attorney regarding
the terms and effect of this Agreement; and (e) have signed this Agreement knowingly and voluntarily.

 

11.            No Suit. You represent
and warrant that you have not previously filed, and to the maximum extent permitted by law agree that you will not file, a complaint,
charge or lawsuit against any of the Company Parties regarding any of the claims released herein. If, notwithstanding this representation
and warranty, you have filed or file such a complaint, charge or lawsuit, you agree that you shall cause such complaint, charge
or lawsuit to be dismissed with prejudice and shall pay any and all costs required in obtaining dismissal of such complaint, charge
or lawsuit, including without limitation reasonable attorneys’ fees of Lipocine or any of the Company Group or any of the
Company Parties against whom you have filed such a complaint, charge or lawsuit. Nothing in this Agreement shall be construed to
prohibit you from filing a charge or complaint with the Equal Employment Opportunity Commission or participating in any investigation
conducted by the Equal Employment Opportunity Commission, though you have waived any right to monetary relief.

 

12.            Successors and Assigns.
The provisions hereof shall endure to the benefit of your heirs, executors, administrators, legal personal representatives and
assigns and shall be binding upon your heirs, executors, administrators, legal personal representatives and assigns.

 

13.            Severability. If any
provision of this Agreement shall be held by any court of competent jurisdiction to be illegal, void or unenforceable, such provision
shall be of no force or effect. The illegality or unenforceability of such provision, however, shall have no effect upon and shall
not impair the enforceability of any other provision of this Agreement. This Agreement shall be construed together with the Inventions
Agreement so as to give the Company the broadest possible protections even if a provision of this Agreement conflicts with a provision
of the Inventions Agreement.

 

    	 

    	 

    

 

14.            Return of
Property. You shall return, as soon as possible after the Effective Date, and not retain in any form or format, all Lipocine
documents, data, and other property in your possession or control. Lipocine “documents, data, and other property” includes,
without limitation, any computers, fax machines, cell phones, IPads, access cards, keys, reports, manuals, contracts, agreements,
records, product samples, inventory, business plans, clinical or R&D plans and information, regulatory correspondence and materials,
correspondence or analysis and/or other documents or materials related to Lipocine’s business that you have compiled, generated
or received while working for Lipocine, including all copies, samples, computer data, disks, recordings, or records of such material.
After returning these documents, data, and other property you will permanently delete from any electronic media in your possession,
custody, or control (such as computers, cell phones, IPads, hand-held devices, back-up devices, zip drives, PDAs, etc.), or to
which you have access (such as remote e-mail exchange servers, back-up servers, off-site storage, etc.), all documents or electronically
stored images of Lipocine, including writings, drawings, graphs, charts, sound recordings, images, and other data or data compilations
stored in any medium from which such information can be obtained. Furthermore, you agree, on or before the Effective Date, to provide
Lipocine with a list of any documents that you created or are otherwise aware to be password protected and the password(s) necessary
to access such password protected documents. Lipocine’s obligations under this Agreement are contingent upon you returning
all Lipocine documents, data, and other property as set forth above.

 

15.            Non-Admission.
Nothing contained in this Agreement will be deemed or construed as an admission of wrongdoing or liability on the part of you,
Lipocine or any member of the Company Group or any Company Parties.

 

16.            Entire Agreement.
This Agreement constitutes the entire understanding and agreement of the parties hereto regarding the subject matter hereof, including
without limitation the termination of your Employment. Except as set forth in Section 4, this Agreement supersedes all prior negotiations,
discussions, correspondence, communications, understandings and agreements between the parties relating to the subject matter of
this Agreement.

 

17.            Amendments;
Waiver. This Agreement may not be altered or amended, and no right hereunder may be waived, except by an instrument executed
by each of the parties hereto. No waiver of any term, provision, or condition of this Agreement, in any one or more instances,
shall be deemed to be or construed as a further or continuing waiver of any such term, provision or condition or as a waiver of
any other term, provision or condition of this Agreement.

 

18.            Governing
Law; Jurisdiction. EXCEPT WHERE PREEMPTED BY FEDERAL LAW, THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
FEDERAL LAW AND THE LAWS OF THE STATE OF UTAH, APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN THAT STATE. ANY DISPUTE ARISING
OUT OF THIS AGREEMENT, OR THE BREACH THEREOF, SHALL BE BROUGHT IN A COURT OF COMPETENT JURISDICTION IN SALT LAKE COUNTY, THE STATE
OF UTAH, THE PARTIES EXPRESSLY CONSENTING TO VENUE IN SALT LAKE COUNTY, THE STATE OF UTAH. EACH PARTY TO THIS AGREEMENT HEREBY
WAIVES ANY RIGHT TO TRIAL BY JURY IN CONNECTION WITH ANY SUIT, ACTION OR PROCEEDING UNDER OR IN CONNECTION WITH THIS AGREEMENT.
THE PREVAILING PARTY IN ANY LAWSUIT THAT GIVES RISE TO CLAIMS GOVERNED BY THIS AGREEMENT SHALL BE ENTITLED TO AN AWARD OF ATTORNEYS’
FEES FROM THE OTHER PARTY.

 

    	 

    	 

    

 

19.            Injunctive
Relief. You acknowledge that it would be difficult to fully compensate Lipocine for damages resulting from any breach of the
provisions of 4, 5, 6, 7, 8, 9, or 14 of this Agreement. Accordingly, in the event of any actual or threatened breach of such provisions,
Lipocine shall (in addition to any other remedies that it may have) be entitled to temporary and/or permanent injunctive relief
to enforce such provisions, and such relief may be granted without the necessity of proving actual damages.

 

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the Effective Date.

 

 

	
        GERALD
        T. SIMMONS

         

         

        /s/ Gerald T. Simmons

         
	
        LIPOCINE INC.

         

         

        By: /s/ Mahesh Patel

         

         

        Its: President and CEOExhibit 10.1

 Exhibit 10.1 

AMENDMENT NO. 2 TO CREDIT AGREEMENT 

THIS AMENDMENT NO. 2 TO CREDIT AGREEMENT dated and effective as of November 18, 2014 (this “Amendment”), is among CECO
ENVIRONMENTAL CORP., a Delaware corporation (the “Company”), BANK OF AMERICA, N.A., in its capacities as the Administrative Agent (in such capacity, the “Administrative Agent”), a Lender and an L/C Issuer, each of
the other Lenders party hereto, each of the L/C Issuers party hereto and each of the Subsidiary Guarantors party hereto. 
 Recitals:

 A. The Company, the Lenders and the L/C Issuers party thereto and the Administrative Agent have entered into a Credit Agreement
dated as of August 27, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”). Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them
in the Credit Agreement. 
 B. The Subsidiary Guarantors and the Administrative Agent have entered into a Subsidiary Guaranty Agreement
dated of even date with the Credit Agreement (as amended, restated, supplemented or otherwise modified from time to time, the “Subsidiary Guaranty”). 

C. The Company has advised the Administrative Agent and the Lenders that it desires to amend the Credit Agreement as set forth herein. 

D. Subject to the terms and conditions set forth below, the Administrative Agent, the Lenders and the L/C Issuers party hereto have agreed to
so amend the Credit Agreement. 
 In furtherance of the foregoing, the parties agree as follows: 

Section 1. Amendments to Credit Agreement. Subject to the terms and conditions set forth herein and in reliance upon the
representations and warranties set forth herein, the Credit Agreement is hereby amended as follows: 
 (a) The cover page is amended by
replacing the reference therein to “Sole Book Manager” with “Sole Bookrunner”, and each of the definition of “Arranger” in Section 1.01 and Section 9.08 is amended by replacing the reference to
“book manager” therein with “bookrunner”. 
 (b) Section 1.01 is amended by inserting, in the appropriate
alphabetical order, the following new definitions: 
 “Amendment No. 2 Effective Date” means
November 18, 2014. 
 “Emtrol Acquisition” means the Acquisition of Emtrol LLC, a New York limited
liability company, to the extent permitted by Amendment No. 1 to Credit Agreement and Limited Consent dated as of October 30, 2014 among the Company, the Lenders party thereto, the L/C Issuers party thereto, the Subsidiary Guarantors party
thereto and the Administrative Agent. 

 “Foreign/Non-Loan Party Investment Basket” means, with respect
to any fiscal year, an amount equal to $10,000,000; provided that any portion of the foregoing basket, if not used pursuant to Section 7.02(c)(vi) or 7.02(g)(ii) in the fiscal year for which it is permitted (commencing with
the fiscal year ending December 31, 2015), may be carried over for use in the next following fiscal year; it being understood that if any such amount is so carried over, it will be deemed used in the subsequent fiscal year after the foregoing
basket for such fiscal year. 
 “HEE Acquisition” means the Acquisition by the Company, directly or
indirectly through a Subsidiary, of certain assets of HEE Environmental Engineering, LLC consummated on or about August 13, 2014. 

“Notice of Loan Prepayment” means a notice of prepayment with respect to a Loan, which shall be substantially
in the form of Exhibit J or such other form as may be approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent), appropriately
completed and signed by a Responsible Officer of the Company. 
 “SAT Acquisition” means the Acquisition by
the Company, directly or indirectly through a Subsidiary, of the Equity Interests in SAT Technology, Inc. consummated on or about September 26, 2014. 

“Specified 2014 Acquisitions” means, collectively, the HEE Acquisition, the SAT Acquisition, the Emtrol
Acquisition and, if consummated, the Zhongli Acquisition. 
 “Zhongli Acquisition” means the Acquisition
relating to the equity interests of, or certain assets of, Jiangyin Zhongli Machinery Industry Co., Ltd. to the extent (a) the consummation of such Acquisition occurs on or prior to January 31, 2015 and (b) such Acquisition is
consummated in all material respects in accordance with the terms of the acquisition documents delivered to the Administrative Agent and the Lenders on or prior to the Amendment No. 2 Effective Date, without giving effect to any modifications,
amendments, consents or waivers thereto that are material and adverse to the interests of the Lenders, as reasonably determined by the Administrative Agent. 

(c) Clause (a) in the definition of “Applicable Percentage” in Section 1.01 is amended and restated in its entirety
as follows: 
 (a) in respect of the Term Loan Facility, with respect to any Term Loan Lender at any time, the percentage (carried out to the
ninth decimal place) of the Term Loan Facility represented by (i) on or prior to the funding of its Term Loan on the Amendment No. 2 Effective Date, the sum of such Lender’s Term Loan Commitment at such time plus the principal
amount of such Term Loan Lender’s Term Loan outstanding at such time and (ii) thereafter, the aggregate principal amount of such Term Loan Lender’s Term Loans outstanding at such time, 

  
 2 

 (d) The last sentence in the definition of “Applicable Percentage” in
Section 1.01 is amended and restated in its entirety as follows: 
 On and after the Amendment No. 2
Effective Date, the initial Applicable Percentage of each Lender in respect of each Facility is set forth opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party
hereto, as applicable. 
 (e) The definition of “Eurocurrency Rate” in Section 1.01 is amended by (i) replacing
each reference to “Reuters” therein with “Bloomberg” and (ii) inserting the following sentence to the end thereof: 

Notwithstanding the foregoing, if the Eurocurrency Rate shall be less than zero, such rate shall be deemed zero for purposes of this Agreement.

 (f) The definitions of “Consolidated EBITDA”, “Loan Notice”, “Responsible Officer”, “Specified
Transactions” and “Swing Line Loan Notice” in Section 1.01 are amended and restated in their entirety as follows: 

“Consolidated EBITDA” means, for any period, for the Company and its Subsidiaries on a consolidated basis,
subject to Section 1.07, an amount equal to Consolidated Net Income for such period plus (a) the following to the extent deducted in calculating such Consolidated Net Income (without duplication): (i) Consolidated
Interest Charges for such period, (ii) the provision for Federal, state, local and foreign income taxes by the Company and its Subsidiaries for such period, (iii) depreciation and amortization expense for such period, (iv) other items
reducing Consolidated Net Income that do not constitute a cash charge or cash expense in such period or in any future period, including, without limitation, goodwill impairment charges, stock compensation or other stock related charges (excluding
amortization of a prepaid cash item that was paid in a prior period), (v) reasonable and documented out-of-pocket fees and expenses incurred in connection with the Specified 2014 Acquisitions; provided that the aggregate amount of such
fees and expenses permitted to be added back pursuant to this clause (v) during the term of this Agreement shall not exceed $2,000,000, and (vi) ATA Beheer Earn-Outs and any other “earn-out” and similar payments in connection
with Acquisitions permitted hereby that reduced Consolidated Net Income for such period, and minus (b) the following to the extent included in calculating such Consolidated Net Income: (i) Federal, state, local and foreign income
tax credits of the Company and its Subsidiaries for such period and (ii) all non-cash items increasing Consolidated Net Income for such period; provided that, for purposes of calculating the Consolidated Leverage Ratio at any time,
Consolidated EBITDA for each of the fiscal quarters listed on Schedule 1.01C shall be increased by the amount(s) set forth opposite such fiscal quarter to account for (x) the incremental EBITDA generated by the Person(s) and/or assets
acquired pursuant to the applicable Specified 2014 Acquisition referenced on Schedule 1.01C prior to the date of consummation of such Specified 2014 Acquisition and (y) the expected savings in operating expenses directly attributable to
such Specified 2014 Acquisition. 

  
 3 

 “Loan Notice” means a notice of (a) a Term Loan Borrowing,
(b) a Revolving Credit (USD) Borrowing, (c) a Revolving Credit (MC) Borrowing, (d) a conversion of Loans from one Type to the other, or (e) a continuation of Eurocurrency Rate Loans, pursuant to Section 2.02(a),
which, if in writing, shall be substantially in the form of Exhibit A or such other form as may be approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by
the Administrative Agent), appropriately completed and signed by a Responsible Officer of the Company. 

“Responsible Officer” means the chief executive officer, president, chief financial officer, treasurer,
assistant treasurer or controller of a Loan Party, solely for purposes of the delivery of incumbency certificates pursuant to Section 4.01, the secretary or any assistant secretary of a Loan Party and, solely for purposes of notices
given pursuant to Article II, any other officer or employee of the applicable Loan Party so designated by any of the foregoing officers in a notice to the Administrative Agent or any other officer or employee of the applicable Loan Party
designated in or pursuant to an agreement between the applicable Loan Party and the Administrative Agent. Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized
by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party. To the extent requested by the Administrative Agent,
each Responsible Officer will provide an incumbency certificate and to the extent reasonably requested by the Administrative Agent, appropriate authorization documentation, in form and substance reasonably satisfactory to the Administrative Agent.

 “Specified Transactions” means (a) any Specified Disposition and (b) any Permitted Acquisition
(other than any Specified 2014 Acquisition). 
 “Swing Line Loan Notice” means a notice of a Swing Line
Borrowing pursuant to Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit B or such other form as approved by the Administrative Agent (including any form on an electronic platform or electronic
transmission system as shall be approved by the Administrative Agent pursuant), appropriately completed and signed by a Responsible Officer of the Company. 

(g) The definition of “Permitted Acquisition” in Section 1.01 is amended by inserting the following sentence to the end
thereof: 
 Notwithstanding the foregoing, the Emtrol Acquisition shall be deemed to be a “Permitted Acquisition” for purposes of
this Agreement. 
 (h) The definition of “Term Loan Commitment” in Section 1.01 is amended by replacing the reference
therein to “Closing Date” with “Amendment No. 2 Effective Date”. 

  
 4 

 (i) Section 2.01(b) is amended and restated in its entirety as follows: 

(b) Term Loan Borrowing. On the Closing Date, each Term Loan Lender then a party to this Agreement made a loan to the Company, in
Dollars, as to which the remaining outstanding principal amount thereof as of the date hereof is set forth opposite such Lender’s name on Schedule 2.01 under the caption “Outstanding Amount of Term Loan as of the Amendment
No. 2 Effective Date”, and, subject to the terms and conditions set forth herein, each Term Loan Lender severally agrees to make another loan to the Company, in Dollars, on the Amendment No. 2 Effective Date in an amount not to exceed
such Lender’s Term Loan Commitment (each loan described in this Section 2.01(b), a “Term Loan”). Amounts borrowed under this Section 2.01(b) and repaid or prepaid may not be reborrowed. Term Loans may be
Base Rate Loans or Eurocurrency Rate Loans, as further provided herein. 
 (j) The first sentence of Section 2.02(a) is amended
and restated in its entirety as follows: 
 Each Revolving Credit (USD) Borrowing, each Revolving Credit (MC) Borrowing, each Term Loan
Borrowing, each conversion of Loans from one Type to the other, and each continuation of Eurocurrency Rate Loans shall be made upon the Company’s irrevocable notice to the Administrative Agent, which may be given by: (A) telephone or
(B) a Loan Notice; provided that any telephonic notice must be confirmed promptly by delivery to the Administrative Agent of a Loan Notice. 

(k) Section 2.02(e) is amended by replacing the reference to “the Term Loan Borrowing” therein with “all Term Loan
Borrowings”. 
 (l) The first sentence of Section 2.04(b) is amended and restated in its entirety as follows: 

Each Swing Line Borrowing shall be made upon the Company’s irrevocable notice to the Swing Line Lender and the Administrative Agent, which
may be given by: (A) telephone or (B) a Swing Line Loan Notice; provided that any telephonic notice must be confirmed promptly by delivery to the Swing Line Lender and the Administrative Agent of a Swing Line Loan Notice. 

(m) Section 2.05(a)(i) is amended by replacing the reference to “, upon notice from the Company to the Administrative
Agent,” therein with the following: 
 , upon notice from the Company to the Administrative Agent pursuant to delivery to the
Administrative Agent of a Notice of Loan Prepayment, 
 (n) Section 2.05(a)(ii) is amended by replacing the reference to “,
upon notice to the Swing Line Lender (with a copy to the Administrative Agent),” therein with the following: 
 , upon notice to the
Swing Line Lender pursuant to delivery to the Swingline Lender of a Notice of Loan Prepayment (with a copy to the Administrative Agent), 

  
 5 

 (o) Section 2.05(b) is amended by adding the following new subsection (vii) to
the end thereof: 
 (vii) Notwithstanding anything in this Section 2.05(b) to the contrary, no prepayment shall
be required pursuant to (A) clause (i), (ii) or (iii) of this Section 2.05(b) as a result of any actions of a Foreign Subsidiary if such prepayment by such Foreign Subsidiary or the upstreaming of cash
by such Foreign Subsidiary in order to make such prepayment would not be permitted by local law (e.g., financial assistance, corporate benefit, restrictions on upstreaming of cash intra-group and the fiduciary and statutory duties of the directors
of such Foreign Subsidiary) and (B) clause (i) of this Section 2.05(b) as a result of the Disposition of assets by a Foreign Subsidiary or clause (iii) of this Section 2.05(b) as a result of the
receipt of Extraordinary Receipts by a Foreign Subsidiary if, in either case, the Company and its Subsidiaries would suffer material adverse tax consequences (as determined in good faith by the Company) as a result of upstreaming cash to make any
such prepayment (including the imposition of withholding taxes). 
 (p) Clause (x) in the proviso to the first sentence in
Section 2.15(a) is amended and restated in its entirety as follows: 
 (x) after giving effect to any such addition, the
aggregate amount of Additional Commitments that have been added pursuant to this Section 2.15 after the Amendment No. 2 Effective Date shall not exceed $50,000,000, 

(q) Section 3.01 is amended by replacing each reference to “W-8BEN” therein with “W-8BEN or W-8BEN-E, as
applicable,”. 
 (r) Section 3.01 is further amended by adding the following new subsection (h) to the end thereof:

 (h) Treatment of Certain FATCA Matters. Solely for purposes of determining withholding Taxes imposed under FATCA,
from and after the Amendment No. 2 Effective Date, the Company and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) this Credit Agreement as not qualifying as a “grandfathered
obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i). 
 (s) Section 7.02(c)(vi) is amended
and restated in its entirety as follows: 
 (vi) Investments made after the Closing Date by any Loan Party in any Subsidiary that is either
not a Loan Party or is a Foreign Subsidiary that is a Loan Party but has not Guaranteed the Obligations of the Company in an aggregate amount in any fiscal year, when taken together with the aggregate amount of Investments made in the form of
Permitted Acquisitions pursuant to Section 7.02(g)(ii) during such fiscal year (exclusive of the Zhongli Acquisition), not to exceed the Foreign/Non-Loan Party Investment Basket for such fiscal year (provided that any Investments in the
form of loans or advances made by any Loan Party to any Subsidiary that is either not a Loan Party or is a Foreign Subsidiary that is a Loan Party but has not Guaranteed the Obligations of the Company pursuant to this clause (vi) shall
be evidenced by a demand note in form and substance reasonably satisfactory to the Administrative Agent and shall be pledged and delivered to the Administrative Agent pursuant to the Collateral Documents); 

  
 6 

 (t) Section 7.02(g)(ii) is amended and restated in its entirety as follows: 

(ii) Permitted Acquisitions to the extent that any Person or property acquired in such Permitted Acquisition does not become a
Loan Party that has Guaranteed the Obligations of the Company or a part of a Loan Party that has Guaranteed the Obligations of the Company in an aggregate amount in any fiscal year (exclusive of the Zhongli Acquisition), when taken together with the
aggregate amount of Investments made pursuant to Section 7.02(c)(vi) during such fiscal year, not to exceed the Foreign/Non-Loan Party Investment Basket for such fiscal year; 

(u) Section 7.03(h) is amended and restated in its entirety as follows: 

(h) Indebtedness of Foreign Subsidiaries; provided, however, that the aggregate amount of all such Indebtedness,
at any one time outstanding, shall not exceed $15,000,000; and 
 (v) Section 7.11(b) is amended and restated in its entirety as
follows: 
 (b) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio at any time during any period set
forth below to be greater than the ratio set forth below opposite such period: 
  

			
	 Period
	 	 Consolidated Leverage Ratio

	 Amendment No. 2 Effective Date through September 29, 2015
	 	3.25 to 1.00
	 September 30, 2015 through December 30, 2016
	 	3.00 to 1.00
	 December 31, 2016 through December 30, 2017
	 	2.75 to 1.00
	 December 31, 2017 and thereafter
	 	2.50 to 1.00

 (w) Section 10.17 is amended and restated in its entirety as follows: 

10.17 Electronic Execution of Assignments and Certain Other Documents. The words “delivery,”
“execute,” “execution,” “signed,” “signature,” and words of like import in any Loan Document or any other document executed in connection herewith shall be deemed to include electronic signatures, the
electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability
as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable Law, including the Federal Electronic Signatures in Global and
National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform 

  
 7 

 
Electronic Transactions Act; provided that notwithstanding anything contained herein to the contrary neither the Administrative Agent, any L/C Issuer nor any Lender is under any obligation
to agree to accept electronic signatures in any form or in any format unless expressly agreed to by the Administrative Agent, such L/C Issuer or such Lender pursuant to procedures approved by it and provided further without limiting the
foregoing, upon the request of any party, any electronic signature shall be promptly followed by such manually executed counterpart. 
 (x)
A new Schedule 1.01C is added to the Credit Agreement in the form of Schedule 1.01C attached hereto. 
 (y) The existing
Schedule 2.01 to the Credit Agreement is replaced in its entirety with Schedule 2.01 attached hereto. 
 (z) The existing
Schedule 2.07(a) to the Credit Agreement is replaced in its entirety with Schedule 2.07(a) attached hereto. 
 (aa) The
existing Exhibit C-2 to the Credit Agreement is replaced in its entirety with Exhibit C-2 attached hereto. 
 (bb) The
existing Exhibit D to the Credit Agreement is replaced in its entirety with Exhibit D attached hereto. 
 (cc) The existing
Exhibits F-1, F-2, F-3 and F-4 to the Credit Agreement are each amended by replacing each reference to “W-8BEN” therein with “W-8BEN or W-8BEN-E, as applicable,”. 

(dd) A new Exhibit J is added to the Credit Agreement in the form of Exhibit J attached hereto. 

The amendments to the Credit Agreement are limited to the extent specifically set forth above and no other terms, covenants or provisions of
the Loan Documents are intended to be affected hereby. 
 Section 2. Revised Commitments and Applicable Percentages; Reallocation
of Outstanding Loans. 
 (a) Upon the effectiveness of this Amendment on the date hereof, (i) the Commitments and Applicable
Percentages of each Lender with respect to each Facility will be as set forth on Schedule 2.01 attached hereto and (ii) any outstanding Loans shall be reallocated among the Lenders in accordance with their respective Applicable
Percentages set forth on Schedule 2.01 attached hereto and the requisite assignments shall be deemed to be made in such amounts among the Lenders party hereto to the extent necessary to make such reallocation, with the same force and effect
as if such assignments were evidenced by applicable Assignments and Assumptions, but without the payment of any related assignment fee. 

  
 8 

 (b) Notwithstanding anything to the contrary in Section 10.06 of the Credit
Agreement, no other documents or instruments, including any Assignment and Assumption, shall be executed in connection with any assignments (all of which requirements are hereby waived) necessary to achieve the allocations of Commitments and
Applicable Percentages on Schedule 2.01 attached hereto and such assignments shall be deemed to be made with all applicable representations, warranties and covenants as if evidenced by an Assignment and Assumption. On the date hereof, the
applicable Lenders shall make full cash settlement with one another, either directly or through the Administrative Agent, as the Administrative Agent may direct or approve, with respect to all assignments and reallocations, such that after giving
effect to such settlements each Lender shall have funded its Applicable Percentage of the Outstanding Amount of all Loans. Each Lender hereto hereby agrees that the Company shall not be obligated to reimburse such Lender for any amounts under
Section 3.05 of the Credit Agreement in connection with any assignments made pursuant to this Section 2(b). 

Section 3. Conditions Precedent. The effectiveness of this Amendment and the amendments and agreements contemplated hereby
is subject to the satisfaction of the following conditions precedent: 
 (a) Documentation. The Administrative Agent shall have
received: 
 (i) counterparts of this Amendment, duly executed and delivered by the Company, the Subsidiary Guarantors, the
Administrative Agent, the Lenders constituting Required Lenders and the L/C Issuers; 
 (ii) Term Loan Notes in the form of
Exhibit C-2 attached hereto executed by the Company in favor of each Lender requesting a Term Loan Note; 
 (iii) such
certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible
Officer thereof authorized to act as a Responsible Officer in connection with this Amendment; 
 (iv) such documents and
certifications as the Administrative Agent may reasonably require to evidence that the Company is duly organized or formed, and that the Company is validly existing and in good standing in its jurisdiction of organization; 

(v) favorable opinions of counsel to the Company addressed to the Administrative Agent and each Lender, as to the matters
concerning the Company and this Amendment as the Administrative Agent may reasonably request; and 
 (vi) completed
“Life-of-Loan” FEMA Standard Flood Hazard Determination with respect to each Mortgaged Property. 

  
 9 

 (b) Zhongli Acquisition Documents. Each of the Administrative Agent and the Lenders
signatory hereto shall have received, and completed a satisfactory review of, executed copies (or the most recent available drafts) of the material acquisition documents relating to the Zhongli Acquisition. 

(c) Fees. Any fees required to be paid on or before the effective date of this Amendment shall have been paid. 

(d) Legal Fees and Expenses. Unless waived by the Administrative Agent, the Company shall have paid all reasonable and documented
out-of-pocket fees, charges and disbursements of counsel to the Administrative Agent (directly to such counsel if requested by the Administrative Agent) to the extent invoiced at least two days prior to the date hereof. 

Upon satisfaction of the conditions set forth in this Section 3 and the effectiveness of this Amendment, the Administrative Agent
shall provide notice of such effectiveness to the Company and the Lenders. 
 Section 4. Representations And Warranties.

 (a) In order to induce the Administrative Agent, the Lenders and the L/C Issuers to enter into this Amendment, the Company represents
and warrants to the Administrative Agent, the Lenders and the L/C Issuers as follows: 
 (i) The representations and
warranties of the Company and each other Loan Party contained in Article V of the Credit Agreement or in any other Loan Document are true and correct in all material respects on and as of the date hereof, except (A) that if a qualifier
relating to materiality, Material Adverse Effect or a similar concept applies, such representation or warranty shall be required to be true and correct in all respects, (B) to the extent that such representations and warranties specifically
refer to an earlier date (except that if a qualifier relating to materiality, Material Adverse Effect or a similar concept applies, such representation or warranty shall be required to be true and correct in all respects as of such earlier date), in
which case they are true and correct in all material respects as of such earlier date, and (C) that for purposes of this Amendment, the representations and warranties contained in Sections 5.05(a) and (b) of the Credit
Agreement shall be deemed to refer to the most recent statements furnished pursuant to Sections 6.01(a) and (b), respectively, of the Credit Agreement. 

(ii) Since December 31, 2012, there has been no event or circumstance, either individually or in the aggregate, that has
had or could reasonably be expected to have a Material Adverse Effect. 
 (iii) No Default or Event of Default has occurred
and is continuing or will exist after giving effect to this Amendment. 
 (b) In order to induce the Administrative Agent, the Lenders and
the L/C Issuers to enter into this Amendment, each of the Company and each Subsidiary Guarantor represents and 

  
 10 

 
warrants to the Administrative Agent, the Lenders and the L/C Issuers that this Amendment has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding
obligation, except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws relating to or limiting creditors’ rights generally and by general principles of equity (regardless of whether
enforcement is sought in a proceeding in equity or at law). 
 Section 5. Miscellaneous. 

(a) Ratification and Confirmation of Loan Documents. Each of the Company and each Subsidiary Guarantor hereby consents, acknowledges and
agrees to the amendments and agreements set forth herein and hereby confirms and ratifies in all respects the Loan Documents to which such Person is a party (including without limitation, with respect to each Subsidiary Guarantor, the continuation
of its payment and performance obligations under the Subsidiary Guaranty and, with respect to both the Company and each Subsidiary Guarantor, the continuation and extension of the liens granted under the Collateral Documents to secure the Secured
Obligations, in each case after giving effect to the amendments and agreements contemplated hereby). 
 (b) Fees and Expenses. The
Company shall pay on demand all reasonable costs and expenses of the Administrative Agent in connection with the preparation, negotiation, execution, and delivery of this Amendment and any other documents prepared in connection herewith, including,
without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent, in each case, as set forth in Section 10.04(a) of the Credit Agreement. 

(c) Headings. Section and subsection headings in this Amendment are included herein for convenience of reference only and shall not
constitute a part of this Amendment for any other purpose or be given any substantive effect. 
 (d) Governing Law; Jurisdiction; Waiver
of Jury Trial; Etc. This Amendment shall be governed by and construed in accordance with the laws of the State of New York, and shall be further subject to the provisions of Sections 10.14 and 10.15 of the Credit Agreement. 

(e) Counterparts. This Amendment may be executed in any number of counterparts, each of which when executed and delivered shall be
deemed to be an original, and all of which when taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Amendment by facsimile or electronic transmission (including .pdf file) shall
be effective as delivery of a manually executed counterpart hereof. 
 (f) Entire Agreement. This Amendment, together with all the
Loan Documents (collectively, the “Relevant Documents”), sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and agreements among the
parties relating to such subject matter. No promise, condition, representation or warranty, express or implied, not set forth in the Relevant Documents shall bind any party hereto, and no such party has relied on any such promise, condition,
representation or warranty. Each of the parties hereto acknowledges that, except as otherwise 

  
 11 

 
expressly stated in the Relevant Documents, no representations, warranties or commitments, express or implied, have been made by any party to the other in relation to the subject matter hereof or
thereof. None of the terms or conditions of this Amendment may be changed, modified, waived or canceled orally or otherwise except in writing in accordance with Section 10.01 of the Credit Agreement. 

(g) Enforceability. Should any one or more of the provisions of this Amendment be determined to be illegal or unenforceable as to one
or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto. 
 (h)
Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns (subject to Section 10.06 of the Credit Agreement). 

[Remainder of Page Intentionally Left Blank; Signature Pages Follow] 

  
 12 

 The following parties have caused this Amendment to be executed as of the date first written
above. 
  

			
	COMPANY:
	
	CECO ENVIRONMENTAL CORP.
		
	By:	 	 /s/ Edward J. Prajzner

	Name:	 	Edward J. Prajzner
	Title:	 	Chief Financial Officer

  

	
	SUBSIDIARY GUARANTORS:
	
	 AARDING THERMAL ACOUSTICS USA INC.

	ADWEST TECHNOLOGIES, INC.
	AVC, INC.
	CECO ABATEMENT SYSTEMS, INC.
	CECO FILTERS, INC.
	CECO GROUP, INC.
	CECO MEXICO HOLDINGS LLC
	CECOAIRE, INC.
	EFFOX INC.
	FISHER-KLOSTERMAN, INC.
	 GMD ENVIRONMENTAL TECHNOLOGIES, INC.

	 MET-PRO TECHNOLOGIES LLC (f/k/a Mustang Acquisition II, LLC)

	NEW BUSCH CO., INC.
	 THE KIRK & BLUM MANUFACTURING COMPANY

  

			
	By:	 	 /s/ Edward J. Prajzner

	Name:	 	Edward J. Prajzner
	Title:	 	Chief Financial Officer

  

			
	CECO GROUP GLOBAL HOLDINGS LLC FKI, LLC
		
	By:	 	 /s/ Edward J. Prajzner

	Name:	 	Edward J. Prajzner
	Title:	 	Chief Financial Officer

  
 AMENDMENT NO. 2 TO CREDIT
AGREEMENT 
 Signature Page 

 
			
	H.M. WHITE, INC.
		
	By:	 	 /s/ Edward J. Prajzner

	Name:	 	Edward J. Prajzner
	Title:	 	Chief Financial Officer

  

			
	KBD/TECHNIC, INC.
		
	By:	 	 /s/ Edward J. Prajzner

	Name:	 	Edward J. Prajzner
	Title:	 	Chief Financial Officer

  

			
	BIO-REACTION INDUSTRIES INC.
	MET-PRO HOLDINGS LLC
	MPC INC.
	PRISTINE WATER SOLUTIONS INC.
	STROBIC AIR CORPORATION
		
	By:	 	 /s/ Edward J. Prajzner

	Name:	 	Edward J. Prajzner
	Title:	 	Chief Financial Officer

  

			
	MET-PRO INDUSTRIAL SERVICES, INC.
		
	By:	 	 /s/ Edward J. Prajzner

	Name:	 	Edward J. Prajzner
	Title:	 	Chief Financial Officer

  
 AMENDMENT NO. 2 TO CREDIT
AGREEMENT 
 Signature Page 

 
			
	ADMINISTRATIVE AGENT:
	
	 BANK OF AMERICA, N.A.,
 as
Administrative Agent

		
	By:	 	 /s/ Anthony W. Kell

	Name:	 	Anthony W. Kell
	Title:	 	Vice President

  
 AMENDMENT NO. 2 TO CREDIT
AGREEMENT 
 Signature Page 

 
			
	LENDERS:
	
	 BANK OF AMERICA, N.A., as a Lender and an

L/C Issuer

		
	By:	 	 /s/ Joseph R. Jackson

	Name:	 	Joseph R. Jackson
	Title:	 	Vice President

  
 AMENDMENT NO. 2 TO CREDIT
AGREEMENT 
 Signature Page 

 
			
	 FIFTH THIRD BANK, N.A., as a Lender and an

L/C Issuer

		
	By:	 	 /s/ Nick Jevic

	Name:	 	Nick Jevic
	Title:	 	Vice President

  
 AMENDMENT NO. 2 TO CREDIT
AGREEMENT 
 Signature Page 

 
			
	CITIZENS BANK, NATIONAL ASSOCIATION, as a Lender and an L/C Issuer
		
	By:	 	 /s/ Dale R. Carr

	Name:	 	Dale R. Carr
	Title:	 	Senior Vice President

  
 AMENDMENT NO. 2 TO CREDIT
AGREEMENT 
 Signature Page 

 
			
	JPMORGAN CHASE BANK, N.A., as a Lender
		
	By:	 	 /s/ Steven P. Sullivan

	Name:	 	Steven P. Sullivan
	Title:	 	Authorized Officer

  
 AMENDMENT NO. 2 TO CREDIT
AGREEMENT 
 Signature Page 

 
			
	ASSOCIATED BANK, NATIONAL ASSOCIATION, as a Lender
		
	By:	 	 /s/ Mark Palazzo

	Name:	 	Mark Palazzo
	Title:	 	Senior Vice President

  
 AMENDMENT NO. 2 TO CREDIT
AGREEMENT 
 Signature Page 

 
			
	 BRANCH BANKING AND TRUST

COMPANY, as a Lender

		
	By:	 	 /s/ Greg R. Branstetter

	Name:	 	Greg R. Branstetter
	Title:	 	Senior Vice President

  
 AMENDMENT NO. 2 TO CREDIT
AGREEMENT 
 Signature Page 

 
			
	THE HUNTINGTON NATIONAL BANK, as a Lender
		
	By:	 	 /s/ Joshua D. Elsea

	Name:	 	Joshua D. Elsea
	Title:	 	Vice President

  
 AMENDMENT NO. 2 TO CREDIT
AGREEMENT 
 Signature Page 

 
			
	PNC BANK, NATIONAL ASSOCIATION, as a Lender
		
	By:	 	 /s/ Gregory Buchanan

	Name:	 	Gregory Buchanan
	Title:	 	Senior Vice President

  
 AMENDMENT NO. 2 TO CREDIT
AGREEMENT 
 Signature Page 

 
			
	TD BANK, N.A., as a Lender
		
	By:	 	 /s/ Susan Schwartz

	Name:	 	Susan Schwartz
	Title:	 	Vice President

  
 AMENDMENT NO. 2 TO CREDIT
AGREEMENT 
 Signature Page 

 SCHEDULE 1.01C 

CONSOLIDATED EBITDA ADJUSTMENTS FOR SPECIFIED 2014 ACQUISITIONS 

 

																																	
	 Fiscal Quarter
	  	HEE Acquisition	 	  	SAT Acquisition	 	  	Emtrol Acquisition	 	  	Zhongli Acquisition1	 
	 	  	Incremental
EBITDA	 	  	Expected
Savings	 	  	Incremental
EBITDA	 	  	Expected
Savings	 	  	Incremental
EBITDA	 	  	Expected
Savings	 	  	Incremental
EBITDA	 	  	Expected
Savings	 
	 March 31, 2014
	  	$	337,000	  	  	$	0	  	  	$	142,000	  	  	$	0	  	  	$	1,231,000	  	  	$	750,000	  	  	$	875,000	  	  	$	0	  
	 June 30, 2014
	  	$	337,000	  	  	$	0	  	  	$	142,000	  	  	$	0	  	  	$	1,231,000	  	  	$	750,000	  	  	$	875,000	  	  	$	0	  
	 September 30, 2014
	  	$	169,000	  	  	$	0	  	  	$	142,000	  	  	$	0	  	  	$	1,231,000	  	  	$	750,000	  	  	$	875,000	  	  	$	0	  
	 December 31, 2014
	  	$	0	  	  	$	0	  	  	$	0	  	  	$	0	  	  	$	410,000	  	  	$	750,000	  	  	$	875,000	  	  	$	0	  

  

	1 	The adjustments to Consolidated EBITDA relating to the Zhongli Acquisition will be included only if the Zhongli Acquisition was consummated during the applicable fiscal period. 

 SCHEDULE 2.01 

COMMITMENTS AND APPLICABLE PERCENTAGES 
  

																													
	 Lender
	  	Revolving
Credit (USD)
Commitment	 	  	Applicable
Percentage
(Revolving
Credit (USD)
Facility)	 	 	Revolving
Credit (MC)
Commitment	 	  	Applicable
Percentage
(Revolving
Credit (MC)
Facility)	 	 	Outstanding
Amount of
Term Loan as
of Amendment
No. 2 Effective
Date	 	  	Term Loan
Commitment	 	  	Applicable
Percentage
(Term Loan
Facility)	 
	 Bank of America, N.A.
	  	$	20,467,741.92	  	  	 	23.938879439	% 	 	$	5,661,290.35	  	  	 	29.032258205	% 	 	$	16,624,823.13	  	  	$	0.00	  	  	 	18.018894630	% 
	 Citizens Bank, National Association
	  	$	12,070,480.00	  	  	 	14.117520468	% 	 	$	3,145,161.29	  	  	 	16.129032256	% 	 	$	9,236,012.83	  	  	$	4,803,057.97	  	  	 	15.216314512	% 
	 Fifth Third Bank
	  	$	12,070,480.00	  	  	 	14.117520468	% 	 	$	3,145,161.29	  	  	 	16.129032256	% 	 	$	9,236,012.83	  	  	$	4,803,057.97	  	  	 	15.216314512	% 
	 PNC Bank, National Association
	  	$	8,722,582.15	  	  	 	10.201850468	% 	 	$	1,132,258.06	  	  	 	5.806451590	% 	 	$	3,324,964.62	  	  	$	6,820,195.17	  	  	 	10.995880307	% 
	 JPMorgan Chase Bank, N.A.
	  	$	6,986,715.23	  	  	 	8.171596760	% 	 	$	1,887,096.77	  	  	 	9.677419333	% 	 	$	5,541,607.69	  	  	$	2,584,580.31	  	  	 	8.807608007	% 
	 TD Bank, N.A.
	  	$	7,335,678.16	  	  	 	8.579740538	% 	 	$	1,132,258.06	  	  	 	5.806451590	% 	 	$	3,324,964.62	  	  	$	5,207,099.16	  	  	 	9.247518426	% 
	 Associated Bank, National Association
	  	$	5,948,774.18	  	  	 	6.957630620	% 	 	$	1,132,258.06	  	  	 	5.806451590	% 	 	$	3,324,964.62	  	  	$	3,594,003.14	  	  	 	7.499156535	% 
	 Branch Banking and Trust Company
	  	$	5,948,774.18	  	  	 	6.957630620	% 	 	$	1,132,258.06	  	  	 	5.806451590	% 	 	$	3,324,964.62	  	  	$	3,594,003.14	  	  	 	7.499156535	% 
	 The Huntington National Bank
	  	$	5,948,774.18	  	  	 	6.957630620	% 	 	$	1,132,258.06	  	  	 	5.806451590	% 	 	$	3,324,964.62	  	  	$	3,594,003.14	  	  	 	7.499156535	% 
		  	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	 	  
	  
	 	  	  
	  
	 	  	  
	  
	 
	 Total
	  	$	85,500,000.00	  	  	 	100.000000000	% 	 	$	19,500,000.00	  	  	 	100.000000000	% 	 	$	57,263,279.58	  	  	$	35,000,000.00	  	  	 	100.000000000	% 

 SCHEDULE 2.07(a) 

TERM LOAN FACILITY AMORTIZATION SCHEDULE 
  

			
	 Last Business Day of
	 	 Principal Payment Amount

	 December 2014
	 	$2,191,252,.89
	 March 2015
	 	$2,191,252,.89
	 June 2015
	 	$2,191,252,.89
	 September 2015
	 	$2,191,252,.89
	 December 2015
	 	$2,191,252,.89
	 March 2016
	 	$2,191,252,.89
	 June 2016
	 	$2,191,252,.89
	 September 2016
	 	$2,191,252,.89
	 December 2016
	 	$2,767,898.39
	 March 2017
	 	$2,767,898.39
	 June 2017
	 	$2,767,898.39
	 September 2017
	 	$2,767,898.39
	 December 2017
	 	$3,344,543.88
	 March 2018
	 	$3,344,543.88
	 June 2018
	 	$3,344,543.88
	 Maturity Date
	 	Entire outstanding principal amount of Term Loans

 EXHIBIT C-2 

FORM OF TERM LOAN NOTE 

            , 20     

FOR VALUE RECEIVED, the undersigned (the “Borrower”) hereby promises to pay to
                     or registered assigns (the “Lender”), in accordance with the provisions of the Agreement (as hereinafter
defined), the principal amount of each Term Loan made by the Lender to the Borrower from time to time under that certain Credit Agreement, dated as of August 27, 2013 (as amended, restated, extended, supplemented or otherwise modified in
writing from time to time, the “Agreement”; the terms defined therein being used herein as therein defined), among the Borrower, certain of its Subsidiaries, each Lender from time to time party thereto, and Bank of America, N.A., as
Administrative Agent, Swing Line Lender and an L/C Issuer. 
 The Borrower promises to pay interest on the unpaid principal amount of each
Term Loan from the date such Term Loan is made until such principal amount is paid in full, at such interest rates and at such times as provided in the Agreement. All payments of principal and interest shall be made to the Administrative Agent for
the account of the Lender in Dollars and in Same Day Funds at the Administrative Agent’s Office for Dollar-denominated payments. If any amount is not paid in full when due hereunder, such unpaid amount shall bear interest, to be paid upon
demand, from the due date thereof until the date of actual payment (and before as well as after judgment) computed at the per annum rate set forth in the Agreement. 

This Term Loan Note is one of the Term Loan Notes referred to in the Agreement, is entitled to the benefits thereof and may be prepaid in
whole or in part subject to the terms and conditions provided therein. This Term Loan Note is also entitled to the benefits of one or more of the Subsidiary Guaranties and is secured by the Collateral. Upon the occurrence and continuation of one or
more of the Events of Default specified in the Agreement, all amounts then remaining unpaid on this Term Loan Note shall become, or may be declared to be, immediately due and payable all as provided in the Agreement. Each Term Loan made by the
Lender shall be evidenced by one or more loan accounts or records maintained by the Lender in the ordinary course of business. The Lender may also attach schedules to this Term Loan Note and endorse thereon the date, amount and maturity of its Term
Loans and payments with respect thereto. 
 The Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
protest and demand and notice of protest, demand, dishonor and non-payment of this Term Loan Note. 
 [Signature page
follows] 

 THIS TERM LOAN NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK. 
  

			
	CECO ENVIRONMENTAL CORP.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

 LOANS AND PAYMENTS WITH RESPECT THERETO 

 

													
	 Date
	 	 Type of

Loan Made
	 	 Amount of

Loan Made
	 	 End of

Interest

Period
	 	 Amount of

Principal or
 Interest
Paid
 This Date
	 	 Outstanding
Principal

Balance This

Date
	 	 Notation

Made By

		 		 		 		 		 		 	
		 		 		 		 		 		 	
		 		 		 		 		 		 	
		 		 		 		 		 		 	
		 		 		 		 		 		 	
		 		 		 		 		 		 	
		 		 		 		 		 		 	
		 		 		 		 		 		 	
		 		 		 		 		 		 	
		 		 		 		 		 		 	
		 		 		 		 		 		 	
		 		 		 		 		 		 	
		 		 		 		 		 		 	
		 		 		 		 		 		 	
		 		 		 		 		 		 	

 EXHIBIT D 

FORM OF COMPLIANCE CERTIFICATE 

Financial Statement Date:             ,
         
 To: Bank of America, N.A., as Administrative Agent 

Ladies and Gentlemen: 
 Reference is made to
that certain Credit Agreement, dated as of August 27, 2013 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined therein being used herein as
therein defined), among CECO Environmental Corp., a Delaware corporation (the “Company”), certain Subsidiaries of the Company party thereto (each a “Designated Borrower” and, together with the Company, the
“Borrowers” and, each a “Borrower”), each Lender from time to time party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer. 

The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the
                                        of the
Company, and that, as such, he/she is authorized to execute and deliver this Compliance Certificate to the Administrative Agent on the behalf of the Company, and that: 

[Use following paragraph 1 for fiscal year-end financial statements] 

1. The Company has delivered the audited financial statements required by Section 6.01(a) of the Agreement for the fiscal year of
the Company ended as of the above date, together with the report and opinion of an independent certified public accountant required by such section. 

[Use following paragraph 1 for fiscal quarter-end financial statements] 

1. The Company has delivered the unaudited financial statements required by Section 6.01(b) of the Agreement for the fiscal
quarter of the Company ended as of the above date. Such financial statements fairly present in all material respects the financial condition, results of operations and cash flows of the Company and its Subsidiaries in accordance with GAAP as at such
date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes. 
 2. The undersigned has reviewed
and is familiar with the terms of the Agreement and has made, or has caused to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of the Company during the accounting period covered by
such financial statements. 
 3. A review of the activities of the Company during such fiscal period has been made under the supervision of
the undersigned with a view to determining whether during such fiscal period the Company performed and observed all its Obligations under the Loan Documents, and 

 [select one:] 

[to the best knowledge of the undersigned, no Default has occurred and is continuing.] 

—or— 

[to the best knowledge of the undersigned, the following is a list of each Default that has occurred and is continuing and its nature and
status:] 
 4. The financial covenant analyses and information set forth on Schedules 1 and 2 attached hereto are true and
accurate on and as of the date of this Compliance Certificate. 
 IN WITNESS WHEREOF, the undersigned has executed this Compliance
Certificate as of                     ,             . 

 

			
	COMPANY:
	
	CECO ENVIRONMENTAL CORP.
		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

 For the Quarter/Year ended
                     (“Statement Date”) 

SCHEDULE 12 

to the Compliance Certificate 
 ($
in 000’s) 
  

	I.	Section 7.11(a) – Consolidated Fixed Charge Coverage Ratio. 

  

			
		
	 A.     Consolidated EBITDA for four consecutive fiscal quarters ending on above date (“Subject
Period”):
	  	
		
	 1.      Consolidated Net Income for Subject Period:
	  	$                    
		
	 2.      Consolidated Interest Charges for Subject Period:
	  	$                    
		
	 3.      Provision for income taxes for Subject Period:
	  	$                    
		
	 4.      Depreciation expenses for Subject Period:
	  	$                    
		
	 5.      Amortization expenses for Subject Period:
	  	$                    
		
	 6.      Other non-cash reductions of Consolidated Net Income for Subject Period:
	  	$                    
		
	 7.      Fee and expenses incurred in connection with the Specified 2014 Acquisitions (not to exceed
 $2,000,000):
	  	$                    
		
	 8.      ATA Beheer Earn-Outs and any other “earn-out” and similar payments:
	  	$                    
		
	 9.      Income tax credits for Subject Period:
	  	$                    
		
	 10.    Non-cash additions to Consolidated Net Income for Subject Period:
	  	$                    
		
	 11.    Consolidated EBITDA (Lines I.A.1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 – 9 – 10):
	  	$                    
		
	 B.     Capital Expenditures during Subject
Period3:
	  	$                    
		
	 C.     Consolidated Fixed Charges for Subject Period:
	  	
		
	 1.      Consolidated Interest Charges paid in cash during Subject Period:
	  	$                    
		
	 2.      Scheduled principal payments of Consolidated Funded Indebtedness during Subject Period:
	  	$                    
		
	 3.      Dividends and distributions paid in cash by Company to its shareholders during Subject
Period:
	  	$                    

 

	2 	The following is a summary of the Credit Agreement and to the extent any conflict exists between the following and the Credit Agreement, the Credit Agreement shall control. 

	3 	Excluding (A) Capital Expenditures constituting payments in respect of capital leases and Capital Expenditures financed by Indebtedness permitted under the Agreement, (B) amounts expended as consideration for
Acquisitions permitted under the Agreement to the extent such amounts would otherwise be included as Capital Expenditures and (C) Capital Expenditures paid for with proceeds of casualty insurance as evidenced in writing and submitted to the
Administrative Agent together with any Compliance Certificate delivered pursuant to Section 6.02(a) of the Agreement. 

			
		
	 4.      Income taxes paid during Subject Period:
	  	$                        
		
	 5.      ATA Beheer Earn-Outs and any other “earn-out” and similar payments during Subject
Period:
	  	$                        
		
	 6.      Consolidated Fixed Charges for Subject Period (Lines I.C.1 + 2 + 3 + 4 + 5):
	  	$                        
		
	 C.     Consolidated Fixed Charge Coverage Ratio ((Line I.A.11 – Line B) ÷ Line I.C.6):
	  	             to 1.00
		
	 Minimum permitted:
	  	1.25 to 1.00

 II. Section 7.11 (b) – Consolidated Leverage Ratio. 

 

			
		
	 A.     Consolidated Funded Indebtedness at Statement Date:
	  	
		
	 1.      Outstanding principal amount of all obligations for borrowed money:
	  	$                        
		
	 2.      Purchase money Indebtedness:
	  	$                        
		
	 3.      Direct obligations arising under letters of credit, bankers’ acceptances, bank guaranties,
surety bonds and similar instruments:
	  	$                        
		
	 4.      Obligations in respect of the deferred purchase price of property or services:
	  	$                        
		
	 5.      Attributable Indebtedness in respect of capital leases and Synthetic Lease Obligations:
	  	$                        
		
	 6.      Guarantees with respect to outstanding Indebtedness of the types specified in Lines II.A.1
 through II.A.5 above of Persons other than the Company or any Subsidiary:
	  	$                        
		
	 7.      Indebtedness of the types referred to in Lines II.A.1 through II.A.6 above of any partnership or
 joint venture in which the Company or a Subsidiary is a general partner or joint venturer:
	  	$                        
		
	 8.      Consolidated Funded Indebtedness (Lines II.A.1 + 2 + 3 + 4 + 5 + 6 + 7):
	  	$                        
		
	B. Consolidated EBITDA for Subject Period	  	$                        
		
	 1.      Enter Line I.A.11 above:
	  	$                        
		
	 2.      Necessary adjustment (see Schedule 1.01C):
	  	$                        
		
	 3.      Consolidated EBITDA for Subject Period (Line II.B.1 + Line II.B.2):
	  	$                        
		
	 C.     Consolidated Leverage Ratio (Line II.A.8 ÷ Line II.B.3):
	  	             to 1.00
		
	Maximum Permitted:	  	

  

			
	 Period
	  	 Consolidated Leverage Ratio

	 Amendment No. 2 Effective Date through September 29, 2015
	  	3.25 to 1.00
	 September 30, 2015 through December 30, 2016
	  	3.00 to 1.00
	 December 31, 2016 through December 30, 2017
	  	2.75 to 1.00
	 December 31, 2017 and thereafter
	  	2.50 to 1.00

 For the Quarter/Year ended
                    (“Statement Date”) 

SCHEDULE 24 

to the Compliance Certificate 
 ($
in 000’s) 
 Consolidated EBITDA 

(in accordance with the definition of Consolidated EBITDA 

as set forth in the Agreement) 
  

											
	 Consolidated

EBITDA
	  	Quarter
Ended	  	Quarter
Ended	  	Quarter
Ended	  	Quarter
Ended	  	Twelve
Months
Ended
	 Consolidated

Net Income
	  		  		  		  		  	
	 + Consolidated Interest Charges
	  		  		  		  		  	
	 + income taxes
	  		  		  		  		  	
	 + depreciation expense
	  		  		  		  		  	
	 + amortization expense
	  		  		  		  		  	
	 + Other non-cash expenses
	  		  		  		  		  	
	 + Fee and expenses incurred in connection with the Specified 2014 Acquisitions (subject to cap)
	  		  		  		  		  	
	 + ATA Beheer Earn-Outs and any other “earn-out” and similar payments
	  		  		  		  		  	
	 + Necessary adjustment (see Schedule 1.01C)
	  		  		  		  		  	
	 - income tax credits
	  		  		  		  		  	
	 - non-cash income
	  		  		  		  		  	
	 = Consolidated EBITDA
	  		  		  		  		  	

  

	4 	The following is a summary of the Credit Agreement and to the extent any conflict exists between the following and the Credit Agreement, the Credit Agreement shall control. 

 EXHIBIT J 

FORM OF NOTICE OF LOAN PREPAYMENT 
  

			
	TO:	  	Bank of America, N.A., as Administrative Agent (the “Administrative Agent”)
		
	RE:	  	Reference is made to that certain Credit Agreement, dated as of August 27, 2013 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement;” the terms defined
therein being used herein as therein defined), among CECO Environmental Corp., a Delaware corporation (the “Company”), certain Subsidiaries of the Company party thereto (each a “Designated Borrower” and, together
with the Company, the “Borrowers” and, each a “Borrower”), each Lender from time to time party thereto, and Bank of America, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.
		
	DATE:	  	[Date]

  
  

The Company hereby provides notice to the Administrative Agent that it shall repay the following Loans as more specifically set forth below:

 The Loan(s) to be prepaid consist of: [check each applicable box]  

 

	 	 ̈	Optional prepayment of Term Loans in the amount of $             

  

	 	 ̈	Optional prepayment of Revolving Credit (USD) Loans in the amount of $              

 

	 	 ̈	Optional prepayment of Revolving Credit (MC) Loans in the amount of $              

(Complete with an amount in accordance with Section 2.05 of the Credit Agreement.) 

The Company shall repay the above-referenced Loans on the following Business Day:
                    . (Complete with a date no earlier than (i) the same Business Day as the date of this Notice of Prepayment with respect to
any Base Rate Loan, (ii) three (3) Business Days subsequent to date of this Notice of Prepayment with respect to Eurocurrency Rate Loans denominated in Dollars, (iii) four (4) Business Days prior to the date of the Notice of
Prepayment with respect to Eurocurrency Rate Loans denominated in Alternative Currencies other than Special Notice Currencies, and (iv) five (5) Business Days prior to the date of this Notice of Prepayment with respect to Eurocurrency Rate
Loans denominated in Special Notice Currencies.) 
 Delivery of an executed counterpart of a signature page of this notice by fax
transmission or other electronic mail transmission (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this notice. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

 
			
	COMPANY:
	
	CECO ENVIRONMENTAL CORP.
		
	By:	 	  

	Name:	 	  

	Title:

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