Document:

Senior Credit Facility Waiver Letter

 Exhibit 10.1 
  
 

 
  
                     JPMorgan Chase Bank, N.A. 
  
 Special Credits Group 
 1717 Main Street,
4th Floor 
 Dallas,
Texas 75201 
 Tel (214) 290-2799 
 Fax (214) 290-2740 

 
 March 23, 2005 
  
 Matrix Service Company 
 Attn: George L. Austin,
Vice President 
 10701 East Ute Street 
 Tulsa, OK 74116

  
 All Other Loan Parties Under the Credit 
 Agreement Described Below 
  

	 	Re:	Credit Agreement dated as of March 7, 2003 among Matrix Service Company, as “Borrower,” the Lenders described therein, and J. P. Morgan Chase Bank, N.A. (successor by
merger to Bank One, N.A. (Main Office, Chicago)), as a Lender, LC Issuer, and as Agent for the Lenders, and others, as amended (as amended, the “Credit Agreement”) 

  
 Gentlemen: 
  
 This is in regard to the above-referenced Credit Agreement. Capitalized terms not defined in this letter have the same meanings as in the Credit
Agreement. Borrower has advised the Agent about certain aspects of Borrower’s projected quarter-end financial results (for the fiscal quarter ending February 28, 2005) that will cause Borrower to breach certain financial covenants in Section
6.27 of the Credit Agreement and that reflect financial performance below Borrower’s previous projections. Accordingly, at this time there exists an “Unmatured Default” under the Credit Agreement (such Unmatured Default being referred
to herein as the “Specified Unmatured Default”). Among other things, the Specified Unmatured Default would prevent Borrower from meeting the conditions set forth in Section 4.2 of the Credit Agreement necessary for Borrower to receive any
Credit Extension and could, under certain circumstances, ripen into a Default under the Credit Agreement. 
  
 To the extent it is affected by the Specified Unmatured Default, Borrower has requested that the Required Lenders waive the requirements of Section 4.2(i)
of the Credit Agreement, which provides that no Credit Extension shall be made unless there exists no Unmatured Default, and that the Required Lenders waive other requirements of the Credit Agreement and the other Loan Documents. 
  
 This is to advise that, upon execution and delivery of this waiver letter by
the Loan Parties, the Agent and Lenders constituting the Required Lenders, the Lenders shall have agreed to waive all rights and remedies under the Credit Agreement and the other Loan Documents arising from the Specified Unmatured Default, from the
date hereof through the end of the Business Day on April 11, 2005 (such date and time the “Waiver Termination Date”), subject to the following: 
  
 (i) this waiver shall not be effective until the following conditions are met: (a) Agent’s receipt of a fee of $35,000 that Agent will apply ratably
among the Lenders, (b) Borrower has paid all currently invoiced legal fees of Agent and Lenders related to the Loan and all currently invoiced fees of Capstone Corporate Recovery, LLC, and (c) Borrower has retained an investment banker or similar
firm acceptable to Agent under a written agreement acceptable to Agent; 

 (ii) notwithstanding anything to the contrary in the Credit Agreement, provided all conditions therefor
in the Credit Agreement (except as specifically waived hereby) are met, the Lenders agree to make Revolving Loans to the Borrower or participate in Facility LCs in accordance with the provisions of Section 2.19 of the Credit Agreement (Facility LCs
not to exceed $15,000,000.00 in the aggregate at any one time) from time to time prior to the Waiver Termination Date, in amounts so that at any one time the aggregate amount of all Revolving Loans and Facility LCs shall not exceed the lesser of (a)
an amount equal to 70% of the Borrowing Base, (b) $29,000,000.00, or (c) the Aggregate Revolving Loan Commitment; 
  
 (iii) this waiver shall be withdrawn without any further action required on the part of the Agent or any of the Lenders, and be of no force or effect, if
any one of the following occurs: 
  
 (a) any
Unmatured Default or Default occurs or exists other than the Specified Unmatured Default, 
  
 (b) Borrower does not, on a weekly basis on or before the end of the Business Day on Thursday of each week, provide to Agent a report in a
form and covering such topics as are reasonably acceptable to Agent, describing the status of Borrower’s efforts to both (1) obtain new funding in the form of both subordinated debt or equity and a replacement senior credit facility and (2)
market and sell Borrower and all its Subsidiaries, or their assets, 
  
 (c) Borrower does not, on a weekly basis on or before the end of the Business Day on Wednesday of each week starting Wednesday, March 23, 2005, provide to Agent a written 13-week cash flow projection covering the
immediately subsequent thirteen (13) weeks, in a form acceptable to Agent, 
  
 (d) Borrower does not, on a weekly basis on or before the end of the last Business Day of each week starting Friday, March 25, 2005, provide to Agent a Borrowing Base Certificate for Borrower on a consolidated basis,
dated as of the last Business Day of the immediately preceding week (provided this shall affect or modify any of the obligations of Borrower described in Section 6.1(xi) of the Credit Agreement), or 
  
 (e) Borrower does not provide to Agent, on or before the end
of the Business Day on March 25, 2005, written evidence acceptable to Agent that Borrower has retained a third-party corporate consulting firm acceptable to Agent under a written engagement letter acceptable to Agent and that such consultant has
agreed in writing, as a part of such consultant’s written terms of engagement, to provide deliverables to Borrower (that Borrower shall in turn provide to Agent and the Lenders) that address subjects acceptable to Agent under deadlines
acceptable to Agent. 
  
 This waiver is limited to the Specified
Unmatured Default only and shall not waive such condition as it may relate to any other Unmatured Default or Default. 
  
 In consideration of the agreements of Borrower and Lenders set forth herein, the last sentence of Section 2.1.1 of the Credit Agreement is hereby deleted
and shall be of no further force and effect. 
  
 This waiver
letter shall constitute a supplement to the Credit Agreement. From and after the date hereof, references in the Credit Agreement to “this Agreement” and like terms shall be deemed to be references to the Credit Agreement as supplemented by
this waiver, and as otherwise amended, supplemented, restated or otherwise modified from time to time in accordance with the Loan Documents. References in the other Loan Documents to the Credit Agreement shall be deemed to be references to the
Credit Agreement as supplemented by this waiver letter and as further amended, supplemented, restated or otherwise modified from time to time. This waiver letter is a Loan Document executed pursuant to the Credit Agreement and shall (unless
otherwise expressly indicated therein) be construed, administered and applied in accordance with the terms and provisions of the Credit Agreement. The Credit Agreement as supplemented by this waiver letter is ratified and confirmed in all respects,
and all other Loan Documents are hereby ratified and confirmed in all respects. 
  
 Except as expressly provided hereby, all of the representations, warranties, terms, covenants and conditions of the Credit Agreement and the other Loan Documents shall remain unamended and unwaived and shall continue
to be, and shall remain, in full force and effect in accordance with their 

 respective terms, including express limitations therein relating to the date on which such representations and warranties
were made. The waiver and agreements set forth herein shall be limited precisely as provided for herein, and shall not be deemed to be a waiver of, amendment to, consent to or modification of any other term or provision of the Credit Agreement or of
any event, condition, or transaction on the part of the Borrower or any other Person which would require the consent of the Agent or any of the Lenders. 
  
 The Borrower and each Loan Party, for itself and on behalf of all its predecessors, successors, assigns, agents, employees, representatives, officers,
directors, general partners, limited partners, joint shareholders, beneficiaries, trustees, administrators, subsidiaries, affiliates, employees, servants and attorneys (collectively the “Releasing Parties”), hereby releases and forever
discharges Agent and each Lender and their respective successors, assigns, partners, directors, officers, agents, attorneys, and employees from any and all claims, demands, cross-actions, controversies, causes of action, damages, rights, liabilities
and obligations, at law or in equity whatsoever, known or unknown, whether past, present or future, now held, owned or possessed by the Releasing Parties, or any of them, or which the Releasing Parties or any of them may, as a result of any actions
or inactions occurring on or prior to the date hereof, hereafter hold or claim to hold under common law or statutory right, arising, directly or indirectly out of any Loan or any of the Loan Documents or any of the documents, instruments or any
other transactions relating thereto or the transactions contemplated thereby. Borrower and each Loan Party understands and agrees that this is a full, final and complete release and agrees that this release may be pleaded as an absolute and final
bar to any or all suit or suits pending or which may hereafter be filed or prosecuted by any of the Releasing Parties, or anyone claiming by, through or under any of the Releasing Parties, in respect of any of the matters released hereby, and that
no recovery on account of the matters described herein may hereafter be had from anyone whomsoever, and that the consideration given for this release is no admission of liability. 
  
 Please indicate your approval of the terms and provisions hereof by executing this letter in the space provided below.

  
 This letter may be executed in any number of counterparts, all
of which together shall constitute a single instrument, and it shall not be necessary that any counterpart be signed by all the parties hereto. A facsimile copy of this letter and signatures thereon shall be considered for all purposes as originals.

  

			
	 Yours very truly,

	
	 J. P. MORGAN CHASE BANK, N.A., as Agent

		
	 By:
	 	 /s/  Hal E. Fudge

			
	ACCEPTED AND AGREED TO:
	
	Borrower:
	
	MATRIX SERVICE COMPANY
		
	By:	 	 /s/  George L. Austin

	 	 	George L. Austin, Vice President
	
	 Loan Parties:
  

	MATRIX SERVICE INC., an Oklahoma
	corporation; MATRIX SERVICE INDUSTRIAL
	CONTRACTORS, INC. (formerly known
	as MATRIX SERVICE MID-CONTINENT,
	INC.), an Oklahoma corporation; MATRIX
	SERVICE, INC. CANADA, an Ontario, Canada
	corporation; HAKE GROUP, INC., a Delaware
	corporation; BOGAN, INC. (including
	Fiberspec, a division), a Pennsylvania
	corporation; MATRIX SERVICE
	SPECIALIZED TRANSPORT, INC.
	(formerly known as FRANK W. HAKE,
	INC.), a Pennsylvania corporation; HOVER
	SYSTEMS, INC., a Pennsylvania corporation;
	I & S, INC., a Pennsylvania corporation;
	MCBISH MANAGEMENT, INC.,
	a Pennsylvania corporation; MECHANICAL
	CONSTRUCTION, INC., a Delaware
	corporation; MID-ATLANTIC
	CONSTRUCTORS, INC., a Pennsylvania
	corporation; TALBOT REALTY, INC.,
	a Pennsylvania corporation; BISH
	INVESTMENTS, INC., a Delaware
	corporation; I & S JOINT VENTURE, L.L.C.,
	a Pennsylvania limited liability company
		
	By:	 	 /s/  George L. Austin

	 	 	George L. Austin, Vice President
	
	Lenders:
	
	J. P. MORGAN CHASE BANK, N.A., as Agent
		
	By:	 	 /s/  Hal E. Fudge

	
	WACHOVIA BANK, NATIONAL ASSOCIATION
		
	By:	 	 /s/  Patrick McGovern

	 	 	Patrick McGovern, Senior Vice President

			
	UMB BANK, N.A.
		
	By:	 	 /s/  Richard J. Lehrter

	 	 	Richard J. Lehrter, Community Bank President
	
	WELLS FARGO BANK, NA
	(formerly known as Wells Fargo Bank Texas, NA)
		
	By:	 	 /s/  Roger Fruendt

	 	 	Roger Fruendt, Senior Vice President
	
	INTERNATIONAL BANK OF COMMERCE,
	successor in interest to
	LOCAL OKLAHOMA BANK,
	an Oklahoma Banking Corporation
	formerly known as LOCAL OKLAHOMA BANK, NA,
		
	By:	 	 /s/  David G. Moore

	 	 	David G. Moore, Senior Vice PresidentEXHIBIT 10.1

FOOT
LOCKER              STOCK OPTION AND AWARD PLAN
 NONSTATUTORY STOCK OPTION AWARD
AGREEMENT

Stock Option Grant

Effective
              (the “Date of Grant”), pursuant to action taken by the
Compensation and Management Resources Committee [or the Stock Option Plan Sub-Committee] of the Board of Directors of Foot Locker, Inc. (the
“Company”), a New York corporation, the Company hereby grants to you a Nonstatutory Option (the “Option”) under the Foot Locker
             Stock Option and Award Plan (the “Plan”), to purchase, in
accordance with the terms of the Plan, up to, but not more than, that number of full shares of common stock of the Company (“Common Stock”)
set forth below at the purchase price per share of US $(the “Exercise Price”), which is 100 percent of the Fair Market Value (as defined in
the Plan) of a share of Common Stock on             .

The Option has been granted to you for a period expiring on
             unless, prior to that time, the Option is exercised in full, is
cancelled, or expires due to your death, retirement or other termination of employment, as provided in the Plan. Except as otherwise provided in the
Plan, the Option will become exercisable in annual installments over a three-year vesting period according to the vesting schedule set forth
below.

Name of Participant:                                 
                                       

Number of Shares of Common
 Stock Covered by
the Option:                  
                                       

Date of Grant:                                            
                                       

Exercise Price Per
Share:                      $
                                       

Vesting Schedule:                                       
                                       

The Option is subject to the terms of the Plan, the Prospectus covering the Plan
dated ________, any subsequently issued Prospectus or Appendix covering the Plan, and the terms and conditions set forth above. All of these documents are
incorporated herein by this reference and made a part of the Option.

	Non-Competition  	 	[Optional provision, as determined by the Compensation and
Management
Resources Committee or the Stock Option Plan Sub-Committee]

By accepting this Option, as provided below, you agree that during the
“Non-Competition Period” you will not engage in “Competition” with the Company or any of its subsidiaries, divisions, or affiliates
(the “Control Group”).

As used herein, “Competition” means:

(i)  participating, directly or
indirectly, as an individual proprietor, stockholder, officer, employee, director, joint venturer, investor, lender, or in any capacity whatsoever
within the United States of America or in any other country where any of your former employing members of the Control Group does business, in (A) a
business in competition with the retail, catalog, or on-line sale of athletic footwear, athletic apparel and sporting goods conducted by the Control
Group (the “Athletic Business”), or (B) a business that in the prior fiscal year supplied product to the Control Group for the Athletic
Business having a value of $20 million or more at cost to the Control Group; provided, however, that such participation shall not include (X) the mere
ownership of not more than 1 percent of the total outstanding stock of a publicly held company; (Y) the performance of services for any enterprise to
the extent such services are not performed, directly or indirectly, for a business in competition with the Athletic Business or for a business which
supplies product to the Control Group for the Athletic Business; or (Z) any activity engaged in with the prior written approval of the Chief Executive
Officer of the Company; or

(ii)  intentionally recruiting, soliciting
or inducing, any employee or employees of the Control Group to terminate their employment with, or otherwise cease their relationship with the former
employing members of the Control Group where such employee or employees do in fact so terminate their employment.

As used herein, “Non-Competition” Period means (i) the period commencing
             and ending on
            , or any part thereof, during which you are employed by the Control
Group and (ii) if your employment with the Control Group terminates for any reason during such period, the one-year period commencing on the date your
employment with the Control Group terminates. Notwithstanding the foregoing, the Non-Competition Period shall not extend beyond the date your
employment with the Control Group terminates if such termination of employment occurs following a “Change in Control” as defined in
Attachment A hereto.

You agree that the breach by you of the provisions included herein under the
heading “Non-Competition” (the “Non-Competition Provision”) would result in irreparable injury and damage to the Company for which
the Company would have no adequate remedy at law. You therefore agree that in the event of a breach or a threatened breach of the Non-Competition
Provision, the Company shall be entitled to (i) an immediate injunction and restraining order to prevent such breach, threatened breach, or continued
breach, including by any and all persons acting for or with you, without having to prove damages and (ii) any other remedies to which the Company may
be entitled at law or in equity. The terms of this paragraph shall not prevent the Company from pursuing any other available remedies for any breach or
threatened breach of the Non-Competition Provision, including, but not limited to, recovery of damages. In addition, in the event of your breach of the
Non-Competition Provision, any stock options covered by this Nonstatutory Stock Option Award Agreement (“Award Agreement”) that are then
unexercised (whether or not vested) shall be immediately cancelled. You and the Company further agree that the Non-Competition Provision is reasonable
and that the Company would not have granted the stock option provided for in this Award Agreement but for the inclusion of the Non-Competition
Provision herein. If any provision of the Non-Competition Provision is found by any court of competent jurisdiction to be unenforceable because it
extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend over
the maximum period of time, range of activities, or geographic area as to which it may be enforceable. The validity, construction, and performance of
the Non-Competition Provision shall be governed by the laws of the State of New York without regard to its conflicts of laws principles. For purposes
of the Non-Competition Provision, you and the Company consent to the jurisdiction of state and federal courts in New York County.

Acceptance of Stock Option Grant

For the Option to become a binding obligation of the Company, you must accept the
terms and conditions set forth above by signing and returning one copy of this Nonstatutory Stock Option Award Agreement (“Award Agreement”)
by to: Secretary, Foot Locker, Inc., 112 West 34th Street, New York, New York 10120, Attention: Sheilagh Clarke. An Award Agreement that is mailed in
an envelope that is postmarked on or before will be deemed to have been delivered by this date.

If you accept the Option, please note your complete home address on the copy of the
Award Agreement that you return.

	
[Date]

	    	    	    	FOOT LOCKER, INC.
	    	    	    	    
	 
	    	    	    	By:
Name/Title
	    	    	    	    
	ACCEPTED:

	    	    	    	HOME ADDRESS:

	    	    	    	    
	 
	
Signature

	    	    	    	
Street/P.O. Box
	    	    	    	    
	 
	
Print Name

	    	    	    	
Town/CityState/Province
	    	    	    	    
	 
	 
	    	    	    	
Zip/Postal Code
	    	    	    	    

 

ATTACHMENT A

Change in Control

A Change in Control shall mean any of the following:
(i) (A) the making of a tender or exchange offer by any person or entity or group of associated persons or entities (within the meaning of Section
13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (a “Person”) (other than the Company or its Affiliates) for shares of common
stock of the Company pursuant to which purchases are made of securities representing at least twenty percent (20%) of the total combined voting power
of the Company’s then issued and outstanding voting securities; (B) the merger or consolidation of the Company with, or the sale or disposition of
all or substantially all of the assets of the Company to, any Person other than (a) a merger or consolidation which would result in the voting
securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into
voting securities of the surviving or parent entity) fifty percent (50%) or more of the combined voting power of the voting securities of the Company
or such surviving or parent entity outstanding immediately after such merger or consolidation; or (b) a merger or capitalization effected to implement
a recapitalization of the Company (or similar transaction) in which no Person is or becomes the beneficial owner, directly or indirectly (as determined
under Rule 13d-3 promulgated under the Securities Exchange Act of 1934), of securities representing more than the amounts set forth in (C) below; (C)
the acquisition of direct or indirect beneficial ownership (as determined under Rule 13d-3 promulgated under the Securities Exchange Act of 1934), in
the aggregate, of securities of the Company representing twenty percent (20%) or more of the total combined voting power of the Company’s then
issued and outstanding voting securities by any Person acting in concert as of the date of this Agreement; provided, however, that the Board may at any
time and from time to time and in the sole discretion of the Board, as the case may be, increase the voting security ownership percentage threshold of
this item (C) to an amount not exceeding forty percent (40%); or (D) the approval by the shareholders of the Company of any plan or proposal for the
complete liquidation or dissolution of the Company or for the sale of all or substantially all of the assets of the Company; or (ii) during any period
of not more than two (2) consecutive years, individuals who at the beginning of such period constitute the Board, and any new director (other than a
director designated by a person who has entered into agreement with the Company to effect a transaction described in clause (i)) whose election by the
Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds (-2/3) of the directors then still in
office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any
reason to constitute at least a majority thereof.

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