Document:

dxlg-ex101_13.htm

Exhibit 10.1

DXL GROUP

First Amendment to Second Amended and Restated Destination XL Group, Inc.

Long-Term Incentive Plan

 

Establishment and Purpose

.  Destination XL Group, Inc. (the “Company”) hereby establishes this First Amendment to Second Amended and Restated Destination XL Group, Inc. Long-Term Incentive Plan (the “Plan”) for the purpose of supporting the Company’s ongoing efforts to attract, retain and develop exceptional talent and enable the Company to provide incentives directly linked to the Company’s short and long-term objectives and increases in shareholder value.

Definitions

.  When used herein, the following capitalized terms shall have the meanings assigned to them, unless the context clearly indicates otherwise.  Capitalized terms used herein and not defined shall have the meanings assigned to them in the Incentive Compensation Plan, as defined below.

(a)Affiliate means any entity that controls, is controlled by, or is under common control with, the Company.

(b)Applicable Performance Target means the Performance Target(s) selected by the Committee of the Board to be met during a Performance Period pursuant to the Plan.

(c)Award means an award under the Plan that is payable in the form of Cash, Options, Restricted Stock, Restricted Stock Units or any other form of Award available under the Company’s Incentive Compensation Plan, pursuant to the terms and conditions set forth in this Plan.

(d)Black-Scholes Value means the value of an Option as of the date of the valuation calculated utilizing the same formula and assumptions as the Company utilized for the purpose of valuing outstanding options in its most recently (meaning at the time of the valuation) prepared audited annual financial statement.

(e)Board means the Board of Directors of the Company.

(f)Cash means U.S. dollars.

(g)Committee means the Compensation Committee of the Board.

(h)Effective Date means the date on which the metrics for a Performance Period have been finally approved by the Committee, or such later date as shall be designated by the Committee.  

(i)Effective Date of Participation means the date on which a Participant became a Participant in the Plan with respect to a Performance Period.

(j)Fiscal Quarter means each fiscal quarter that ends within a fiscal year of the Company.

(k)FYE means the last day of each fiscal year of the Company.

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(l)Gain means (i) to the extent that the Award was satisfied with a grant of Options, the amount by which the Fair Market Value per share of the Shares underlying such Option as of the date on which the Participant exercised the Option exceeded the exercise price of the Option; (ii) to the extent that the Award was satisfied by the grant of Restricted Stock that became vested, the Fair Market Value of those vested Shares on the earlier of the date on which the Participant incurred a Termination of Employment or the date on which the Participant sold those Shares;  (iii) to the extent that the Award was satisfied by the grant of Restricted Stock Units that became vested, the Fair Market Value of the vested Shares on the earlier of the date on which the Participant incurred a Termination of Employment or the date on which the Participant sold the Shares; (iv) to the extent that the Award was satisfied in Cash, the amount of Cash paid to satisfy the Award; or (v) to the extent that the Award is satisfied in some other form, the value of the amount used to satisfy the Award (as determined by the Committee).

(m)Good Reason means the same definition of Good Reason, or any substantially similar term, in the Participant’s employment agreement with the Company, if any, that is in effect at the time the determination is being made.  If the Participant does not have an employment agreement with the Company at that time, or there is no definition of Good Reason, or any substantially similar term, in the Participant’s employment agreement at that time, or the Committee determines, in its sole and absolute discretion, that the right to any payment or benefit under this Plan pursuant to a Termination of Employment by a Participant for Good Reason would not be treated as a right to a payment or benefit pursuant to an involuntary separation from service for purposes of Section 409A (as defined in Section 16(a) of this Plan) if the definition of Good Reason, or any substantially similar term, in the Participant’s employment agreement at that time is applied to the Participant’s Termination of Employment, then Good Reason means the occurrence of any of the following in the absence of Justifiable Cause by the Company:  (i) a material diminution in the Participant’s base salary, unless such material diminution in the Participant’s base salary is made pursuant to a reduction in base salary that affects all similarly situated employees in a similar manner and is made at least six months prior to a Change in Control, in which case such material diminution in the Participant’s base salary shall not constitute Good Reason; (ii) a material change in the geographic location at which the Participant must perform his or her job functions to which the Participant does not agree; or (iii) solely in the case of a Section 16 Officer, a material diminution in the Participant’s authority, duties, or responsibilities.  For purposes of this Plan, Good Reason shall not be deemed to exist unless the Termination of Employment by a Participant for Good Reason occurs within 180 days following the initial existence of one of the conditions specified in clauses (i) through (iii) above, the Participant provides the Company with written notice of the existence of such condition within 90 days after the initial existence of the condition, and the Company fails to remedy the condition within 30 days after its receipt of such notice.  

(n)Grant Date means the date on which an Award is granted to a Participant under the Plan, or such later date as shall be determined by the Committee.

(o)Incentive Compensation Plan means the Company’s 2016 Incentive Compensation Plan or any shareholder-approved successor plan to the Company’s 2016 Incentive Compensation Plan.

(p)Justifiable Cause means the same definition as used in the Participant’s employment agreement, if any, that is in effect at the time the determination is being made.  If the Participant does not have an employment agreement at that time, or there is no definition of Justifiable Cause, or any substantially similar term, in the Participant’s employment agreement at that time, then Justifiable Cause means any material failure by the Participant in performing 

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his or her necessary job functions; any breach of any material written policies, rules or regulations which have been adopted by the Company; the Participant’s performance of any act or failure to act, as to which if the Participant were prosecuted and convicted, a crime or offense involving money or property of the Company or its Subsidiaries or Affiliates, or a crime or offense constituting a felony in the jurisdiction involved, would have occurred; the Participant’s embezzlement of funds or assets of the Company or any of its Subsidiaries or Affiliates; the Participant’s conviction of, plea of guilty to, or plea of nolo contendere to any felony; the Participant’s unauthorized disclosure to any person, firm or corporation of any confidential information of the Company or any of its Subsidiaries or Affiliates; the Participant’s usurpation of a corporate opportunity of the Company or any of its Subsidiaries or Affiliates; or the Participant’s engaging in any business other than the business of the Company or its Subsidiaries or Affiliates which materially interferes with the performance of his or her duties.

(q)Operating Margin for any period means the Company’s operating income, as reported on the Company’s consolidated financial statements for that period, divided by Sales for that period.

(r)Performance-Vesting Benefit Amount has the meaning given to that term in Section 6(b) hereof, and includes not only its dollar value but also any Awards made with respect thereto.

(s)Performance Period means each three-year fiscal period which begins on the first day of the fiscal year in which an Effective Date occurs and ends at FYE of the third fiscal year.  For example, if the Effective Date is April 1, 2018, the Performance Period would be February 4, 2018 to January 30, 2021.

(t)Performance Target  means any business criteria for the Company, on a consolidated basis, and/or for Related Entities, or for business or geographical units of the Company and/or a Related Entity that the Committee, in its sole discretion, uses to establish performance goals for Awards.  Any goals may be determined on an absolute or relative basis or as compared to the performance of a published or special index deemed applicable by the Committee including, but not limited to, the Standard & Poor’s 500 Stock Index or a group of companies that are comparable to the Company.  As set forth in Section 3, the Committee may establish threshold, target and maximum goals for each Performance Target. Except as otherwise specified by the Committee at the time the goals are set, the Committee shall exclude the impact of: (i) restructurings, discontinued operations, extraordinary items, and other unusual or non-recurring charges, (ii) an event either not directly related to the operations of the Company or not within the reasonable control of the Company’s management, (iii) a change in accounting standards required by generally accepted accounting principles, or (iv) any other item or event specified by the Committee at the time the goals are set.

(u)Plan means this Destination XL Group, Inc. Long-Term Incentive Plan, as it may be amended from time to time.

(v)Projected Benefit Amount has the meaning given to that term in Section 5 hereof. 

(w)Pro-Rata Vesting Percentage means the percentage that (1) the number of days from the Participant’s Effective Date of Participation until the date of the Participant’s Termination of Employment bears to (2) the number of days from the Participant’s Effective Date of Participation until the end of the Performance Period.  If the Participant receives more 

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than one Award pursuant to Section 6(c) hereof, then the Pro-Rata Vesting Percentage shall be determined separately with respect to each separate Award based upon the particular Grant Date (which is to be treated as the Participant’s Effective Date of Participation with respect to that Award) and Performance-Vesting Benefit Amount for each such Award.  

(x)Retirement means the Termination of Employment of the Participant, other than by reason of the Participant’s death or Disability and other than by the Company for Justifiable Cause or by the Participant for Good Reason, after the Participant has attained age 65 and completed at least 5 years of employment with the Company and its Subsidiaries and Affiliates. 

(y)Sales for any period mean the sales of the Company consistent with the calculation as reported on the Company’s consolidated financial statements for that period.

(z)Section 16 Officer means an officer of the Company who is subject to the requirements of Section 16 of the Securities and Exchange Act of 1934.

(aa)Subsidiary means any corporation or other entity in which the Company has a direct or indirect ownership interest of 50% or more of the total combined voting power of the then outstanding securities or interests of such corporation or other entity entitled to vote generally in the election of directors or in which the Company has the right to receive 50% or more of the distribution of profits or 50% or more of the assets on liquidation or dissolution.

(bb)Target Cash Value means the amount in U.S. dollars determined by: multiplying (i) the Participant’s annual base salary in effect on the Participant’s Effective Date of Participation by (ii) the long-term incentive program percentage designated in the Participant’s executed employment agreement with the Company (or the percentage as otherwise designated in the Company’s records) or such other amount as shall be determined by the Committee.  

(cc)Termination of Employment means the termination of the Participant’s employment with the Company and its Subsidiaries and Affiliates for any reason.

(dd)Time-Vesting Benefit Amount has the meaning given to that term in Section 6(a) hereof, and includes not only its dollar value but also any Awards made with respect thereto.

3.Establishment of Fiscal Year Applicable Performance Target and Awards. The Committee will establish the Performance Target(s) (in the aggregate, the Applicable Performance Target) in no event later than the expiration of 25% of the applicable performance period.  The Committee may establish threshold, target and maximum goals for each Performance Target and the weight of each Performance Target may vary and may be dependent on achievement of another Performance Target.  At that time, the Committee will establish whether Awards will be granted in Cash, a form of equity (for example, Restricted Stock, Restricted Stock Units and/or Options), or a combination thereof.

4.Eligibility. The Committee shall designate those employees of the Company and its Subsidiaries and Affiliates who shall be eligible to become Participants in the Plan and the date during the Performance Period on which they shall become Participants.  The initial Participants shall become Participants on the Effective Date for the Performance Period that begins February 4, 2018.  Except as otherwise provided in Section 7(d) hereof, unless otherwise determined by the Committee, no portion of any Award shall become vested pursuant to Section 7 hereof, 

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unless and until a Participant has completed at least 1 year of employment with the Company and its Subsidiaries and Affiliates from the Grant Date.  No one shall be eligible to be a Participant during an existing Performance Period unless he or she was employed by, or is promoted by, the Company by the first day of the fourth fiscal quarter in the third year of a Performance Period. 

Amount of Benefit

.  The benefit payable to a Participant pursuant to an Award under this Plan shall be equal to the sum of the vested portions, if any, of the Participant’s Time-Vesting Benefit Amount and Performance-Vesting Benefit Amount.  Those amounts shall be determined in accordance with Section 7 of this Plan, based upon the Participant’s Target Cash Value for the Performance Period (or, in the case of an individual that becomes a Participant after the Effective Date of a Performance Period, an amount (the “Projected Benefit Amount”) equal to the Target Cash Value for the Performance Period multiplied by a fraction, the numerator of which shall be the number of calendar days from the Participant’s Effective Date of Participation to the end of the Performance Period and the denominator of which shall be the total number of days in Performance Period).

Form of Payment

.  

(a)Grant of Time-Based Awards.  Upon a Participant’s Effective Date of Participation, the Committee shall grant to the Participant the portion of the Award having a total dollar value equal to 50% of the Participant’s Projected Benefit Amount for the Performance Period (the “Time-Vesting Benefit Amount”) which shall vest over time.  In the event all or a portion of the Award will be Restricted Stock or a Restricted Stock Unit, the number of shares to be granted will be determined by taking the dollar value of the Restricted Stock or Restricted Stock Unit Award and dividing by the closing price of the Company’s common stock on Grant Date.  In the event all or a portion of the Award will be Options, then the number of options to be granted will be determined by taking the dollar value of the Stock Option Award and dividing by the Black-Scholes Value on the Grant Date, each with an exercise price equal to the closing price of the Company’s common stock on the Grant Date.  

Subject to continued employment with the Company, time-vested RSUs granted with respect to a Performance Period will vest 25% a year over a four-year period beginning on April 1 of the immediately following fiscal year in accordance with Section 7(b).

(b)Grant of Performance-Based Awards.  50% of the Projected Benefit Amount shall be converted into a dollar value in accordance with Section 7(b), based upon the achievement of performance criteria during the Performance Period, which dollar value is sometimes hereinafter referred to as the “Performance-Vesting Benefit Amount”.  After completion of an audit of the Company’s financial statements after the respective Performance Period ends and the Committee’s review and approval that the Applicable Performance Targets were met the Committee shall grant to the Participant one or more Awards having an aggregate dollar value equal to the Performance-Vesting Benefit Amount as so calculated.  All grants of performance-based awards are subject to a post-grant vesting period, as set forth in Section 7(b).  In the event all or a portion of the Award will be Restricted Stock or Restricted Stock Units, the number of shares or units to be granted will be determined by taking the dollar value of the Restricted Stock or Restricted Stock Unit Award and dividing by the closing price of the Company’s common stock on the Grant Date.  In the event all or a portion of the Award will be Options, then the number of options to be granted will be determined by taking the dollar value of the Stock Option Award and dividing by the Black-Scholes Value on the Grant Date, 

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each with an exercise price equal to the closing price of the Company’s common stock on the Grant Date.

(c)Additional Grants for Promotions.  If a Participant is promoted during the Performance Period (prior to the 1st day of the fourth quarter of the third fiscal year) and entitled to a higher long-term incentive program percentage as a result of such promotion, then the Committee shall grant the Participant an additional Award determined as if the Participant had become a Participant on the Grant Date of the additional Award, with the amount of the additional Award being equal to the excess, if any, of (i) Participant’s Projected Benefit Amount determined as if the Participant had become a Participant on the Grant Date of the additional Award, over (ii) the Participant’s original Projected Benefit Amount multiplied by a fraction, the numerator of which shall be equal to the total number of calendar days from the Grant Date of the additional Award to the last day of the Performance Period and the denominator of which shall be the total number of days from the Participant’s Effective Date of Participation to the last day of the Performance Period.  In the event that a Participant is promoted and entitled to a higher long-term incentive program percentage as a result of such promotion more than once during the Performance Period, each additional Award shall be determined by the Committee, in its sole and absolute discretion, under the principles set forth above in this Section 6(c).  

(d)Forms of Award Agreements.  The Restricted Stock, Restricted Stock Units  and Options granted pursuant to the Plan shall be made pursuant to the forms of Restricted Stock Agreement, Restricted Stock Unit and Stock Option Agreement, respectively, attached as Exhibits A, B and C hereto (with such modifications as the Committee may deem to be appropriate).

(e)Payment of Cash.  The portion of any Projected Benefit Amount that vests and is payable in Cash shall be payable as soon as practicable after the date on which that portion of the benefit vests and, in the case of the Cash attributable to the Performance-Based Vesting Award, the Committee certifies in writing that the Applicable Performance Target has been met (but in either case, in no event later than the last day of the calendar year in which the portion of the Projected Benefit Amount vests). 

(f)If Insufficient Shares Available.  Notwithstanding the foregoing, if and to the extent that, at the time an Award is granted, the Company does not have a sufficient number of Shares remaining available for Awards under the Incentive Compensation Plan to issue such Award in the form of Restricted Stock, Restricted Stock Units and/or Options, or the Shares are available for Awards under the Incentive Compensation Plan subject to shareholder approval, and such approval is not obtained and the grant of Restricted Stock, Restricted Stock Units and/or Options therefore are cancelled, then such Award shall be settled in Cash to the extent of such insufficiency. 

Vesting of Benefit

.  

(a)Vesting of Time-Vesting Benefit Amount:  

(i)The Time-Vesting Benefit Amount shall vest according to the following four-year vesting schedule, provided that the Participant does not have a Termination of Employment on or before the applicable vesting date:

		
	
Vesting Date
	
Percentage of Time-Vesting Benefit Amount that Vests

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The latter of one year from the Grant Date or April 1 following the FYE which marks the end of the first year of the Performance Period
	
25%

	
 

April 1 following the FYE which marks the end of the second year of the Performance Period

 

April 1 following the FYE which marks the end of the Performance Period

 

April 1 in the succeeding year (meaning, one year after the third tranche vests)
	
 

25%

 

 

 

25%

 

 

25%

	
 
	
 

	
 
	
 

(ii)Notwithstanding the foregoing, if a Participant has a Termination of Employment during a Performance Period, then notwithstanding anything to the contrary in the Participant’s employment agreement, if any:  

(A)If such Termination of Employment is by reason of the Participant’s death or Disability, then the Participant shall, upon such Termination of Employment, (x) become fully vested in the entire Time-Vesting Benefit Amount for any Performance Period that ended on or before such Termination of Employment but that had not yet vested or been paid and (y) become vested in the Pro-Rata Vesting Percentage of the Time-Vesting Benefit Amount for any Performance Period(s) in which such Termination of Employment occurs; 

 (B)If such Termination of Employment is by reason of the Participant’s Retirement, then the Participant shall, upon such Termination of Employment, (x) become fully vested in the entire Time-Vesting Benefit Amount for Performance Period ended before such Termination of Employment that has not yet vested or been paid and (y) become vested in the Pro-Rata Vesting Percentage of the portion of the Time-Vesting Benefit Amount  determined as if the Participant had continued to be employed by the Company and its Subsidiaries until the last day of the fiscal year in which such Termination of Employment occurs; and

(C)If such Termination of Employment is by reason of a termination by the Company without Justifiable Cause (and other than by reason of the Participant’s Disability) or is by the Participant for Good Reason, then, without including any time for a Notification Period (as that term is defined in an employment agreement):

(1) the Participant shall become fully vested in any Time-Vesting Benefit Amount for the entire Performance Period that ended on or before such Termination of Employment that has not yet vested or been paid; and 

(2) for any Performance Period that is in its first year of the Performance Period when such Termination of Employment occurs, the Participant shall forfeit the Time-Vesting Benefit Amount for that Performance Period; and

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(3) for any Performance Period that is in its second or third year of the Performance Period when such Termination of Employment occurs, the Participant shall become vested in the Pro-Rata Vesting Percentage of the Time-Vesting Benefit Amount for that Performance Period.

 

(b)Vesting of Performance-Vesting Benefit Amount.  

(i)After the respective Performance Period ends and an audit of the Company’s financial statements has been completed, the Committee will calculate the amount of the “Performance-Vesting Benefit Amount” for each Participant.  If there is more than one Performance Target, the Performance-Vesting Benefit Amount will be determined by first calculating the portion of 50% of the Projected Benefit Amount for the Performance Period that is to be attributable to each Performance Target and then adding those results together.  To do so, the Committee will first multiply 50% of the Projected Benefit Amount for the Performance Period by the weight of each individual Performance Target and then by the percentage of target actually achieved for each Performance Target.  If results for an individual Performance Target falls below the threshold established, there will be no Award with respect to the portion of the Projected Benefit Amount to which that Performance Target relates. The Performance-Vesting Benefit Amount shall vest on August 31 following the end of the applicable Performance Period if the Participant’s employment continues through such August 3l. 

For example, assume the Performance Targets were Goal A and Goal B and that each was weighted 50%, with a threshold payment at 80% of target and a maximum payout at 150% of target: 

(A)  if Goal A and Goal B are both less than 80% of their respective target, then no Award shall be made for the Performance-Vesting Benefit Amount;

(B)  if Goal A is 100% of its target and Goal B is 100% of its target, and a Participant has a Projected Benefit Amount of $140,000, then 50% of that amount, or $70,000, would be subject to the achievement of the Applicable Performance Target, and the Performance-Vesting Benefit Amount would be $70,000 (100% X $70,000 X 50%) + (100% X $70,000 X 50%); and

(C)  if Goal A is 180% of its target and Goal B is 125% of its target, and a Participant has a Projected Benefit Amount of $140,000, then 50% of that amount, or $70,000, would be subject to the achievement of the Applicable Performance Target, and the Performance-Vesting Benefit Amount would be $96,250 (150% (cap) X $70,000 X 50%) + (125% X $70,000 X 50%).

(ii)Notwithstanding the foregoing, if a Participant has a Termination of Employment during a Performance Period, then notwithstanding anything to the contrary in the Participant’s employment agreement, if any:  

(A)If such Termination of Employment is by reason of the Participant’s death or Disability, then the Participant shall, upon such Termination of Employment, become (x) fully vested in the entire Performance-Vesting Benefit Amount for any Performance Period that ended on or before such Termination of Employment but that had not yet vested or been paid, and (y) vested in the Pro-Rata Vesting Percentage of the 

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Performance-Vesting Benefit Target for any Performance Period that has not ended on or before the Termination of Employment, regardless of whether the Applicable Performance Target for the current Performance Period has been met.

(B)If such Termination of Employment is by reason of the Participant’s Retirement, then the Participant shall (x) become fully vested in the entire Performance-Vesting Benefit Amount for any Performance Period that ended on or before such Termination of Employment but that had not yet vested or been paid and (y) for any Performance Period that is in its first year of the Performance Period when the Termination of Employment occurs, forfeit the Performance-Vesting Benefit Amount for such Performance Period and (z) for any Performance Period that is in at least the second year of the Performance period when the Termination of Employment occurs, become vested in the Pro-Rata Vesting Percentage of the Performance-Vesting Benefit Amount, if any, determined based upon the actual level of achievement of the Applicable Performance Targets for the entire Performance Period; and

(C)If such Termination of Employment is by reason of a termination by the Company without Justifiable Cause (and other than by reason of the Participant’s Disability) or by the Participant for Good Reason, then, without including any time for a Notification Period (as that term is defined in an employment agreement):

(1) the Participant shall become fully vested in the entire Performance-Vesting Benefit Amount for any Performance Period that ended on or before such Termination of Employment but that has not yet vested or been paid; and 

(2) for any Performance Period that is in its first year of the Performance Period when such Termination of Employment occurs, the Participant shall forfeit the Performance-Vesting Benefit Amount for such Performance Period; 

(3) for any Performance Period that is in its second or third year of the Performance Period when such Termination of Employment occurs, the Participant shall become vested in the Pro-Rata Vesting Percentage of the Performance-Vesting Benefit Amount, if any, determined based upon the actual level of achievement of the Applicable Performance Targets for the entire Performance Period if and when the Applicable Performance Target has been met.

(c)Forfeitures.  Except as otherwise provided in Section 7(a)(ii) and 7(b)(ii) hereof, any portion of any Awards for any Performance Period that was not vested on the date on which the Participant incurs a Termination of Employment and that does not vest on account of the Participant’s Termination of Employment shall automatically and without any further action by the Committee immediately be forfeited and become null and void.  In the event that the Participant’s Termination of Employment is by the Company for Justifiable Cause, then any portion of the Participant’s Award that has not previously vested and been exercised (in the case of any Options), or paid (in the case of any amount payable in cash) shall automatically and without further action by the Committee immediately be forfeited and become null and void. 

(d)Clawback of Gains on Termination for Justifiable Cause. In the event that a Participant has a Termination of Employment, and such Termination of Employment was by the Company for Justifiable Cause, then in addition to any other remedy that may be available to the Company in law or in equity, and/or pursuant to the provisions of the Participant’s 

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employment agreement, if any, the Participant also shall be required to pay to the Company, immediately upon written demand by the Committee or the Board, any Gains resulting from the grant, vesting, exercise or payment of any Award in the previous twelve months.

(e)Change in Control.  

(i)In the event there is a Change in Control and within 18 months after the Change in Control, either (1) the Participant is terminated by the Company without Justifiable Cause or by the Participant for Good Reason, or (2) there is a Termination of Employment because of the Participant’s death or Disability, the following shall occur:  (i) if and to the extent the portion of the Participant’s Award(s) that is attributable to a Time-Based Vesting Amount for any Performance Period that ended on or before such Change of Control had not yet vested or been paid to the Participant shall immediately vest (in the case of Restricted Stock, Restricted Stock Units and Options) and the Cash payable as a result of such vesting shall be paid to the Participant, as soon as practicable (but in no event more than 5 business days) after the Participant’s Termination of Employment; (ii) if and to the extent any portion of the Participant’s Award(s) is attributable to a Time-Based Vesting Amount for a current Performance Period and has not previously been vested or paid to the Participant and is not assumed by the acquirer or converted into a new award that is at least the equivalent of the outstanding award, then the Pro-Rata Vesting Percentage of the Time-Vesting Benefit Amount of such Performance Period shall immediately vest (in the case of Restricted Stock, Restricted Stock Units and Options) and the Cash payable as a result of such vesting shall be paid to the Participant, as soon as practicable (but in no event more than 5 business days) after the Participant’s Termination of Employment;  (iii) if and to the extent the portion of the Participant’s Award(s) that is attributable to a Performance-Based Vesting Amount for any Performance Period that ended on or before such Change of Control had not yet vested or been paid to the Participant shall immediately vest (in the case of Restricted Stock, Restricted Stock Units and Options) and the Cash payable as a result of such vesting shall be paid to the Participant, as soon as practicable (but in no event more than 5 business days) after the Participant’s Termination of Employment; and (iv) if and to the extent the portion of the Participant’s Award(s) that is attributable to a Performance-Based Vesting Amount for any Performance Period that has not yet ended and has not previously been vested or paid to the Participant, then the Pro-Rata Vesting Percentage (determined assuming target performance) of the Performance-Based Vesting Amount for such Performance Period(s) for the time elapsed in the ongoing Performance Period(s), shall immediately vest (in the case of Restricted Stock, Restricted Stock Units and Options) and the Cash payable as a result of such vesting shall be paid to the Participant, as soon as practicable (but in no event more than 5 business days) after the Participant’s Termination of Employment (provided that in the event the Award is considered nonqualified deferred compensation subject to Section 409A, the Cash shall be paid at the same time the Award would have been paid under Section 7(b)(ii)).  Each Share of Restricted Stock that vests pursuant to this Section 7(d) shall be immediately redeemed by the Company  (or its successor) for cash payable by the Company (or its successor) in an amount (the “Redemption Price Per Share”) equal to, as applicable, (x) if the Shares have not been cancelled, exchanged or converted into other securities or property as a result of the Change in Control and are publicly-traded, the Fair Market Value of a Share on the date of the Participant’s Termination of Employment, or (y) if the Shares have been cancelled, exchanged or converted into other securities or property as a result of the Change in Control, the greater of (i) the fair market value per Share of the consideration received pursuant to the Change in Control by the holders of Shares on the date of the Change in Control and (ii) if the consideration received by the holders of Shares pursuant to the Change in Control consisted, in whole or in part, of other securities which are publicly traded, the sum of (A) the fair market value of the number of such 

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securities received for each Share pursuant to the Change in Control on the date of the Participant’s Termination of Employment and (B) the fair market value of any other consideration received for each Share pursuant to the Change of Control.   Each Option that vests pursuant to this Section 7(d) shall be immediately cancelled in exchange for cash payable by the Company for each Share subject to the cancelled Option equal to the amount, if any, by which the Redemption Price Per Share exceeds the exercise price per Share of the Option.

(ii)In the event the Participant was terminated by the Company without Justifiable Cause or by the Participant for Good Reason, the Participant’s Award was forfeited as of the Participant’s Termination of Employment, and within the six (6) month period immediately following the Participant’s Termination of Employment there is a Change in Control, the Participant shall be paid the CIC Lump Sum amount, as defined below.  The “CIC Lump Sum” amount is an amount equal to the Cash payment the Participant would have received pursuant to Section 7(e)(i) with respect to any Award forfeited upon the Participant’s Termination of Employment by the Company without Justifiable Cause or by the Participant for Good Reason if the Change in Control had occurred immediately prior to the Participant’s Termination of Employment and such Award (or portion thereof) had not been forfeited.  The CIC Lump Sum amount, if any, shall be paid on the first payroll date after the six month anniversary of the Participant’s Termination of Employment. 

 

Administration

.  

(a)Authority of the Committee.  The Plan shall be administered by the Committee.  The Committee shall have full and final authority, subject to and consistent with the provisions of the Plan, to select persons to become Participants, grant Awards, determine the amount of any Participant’s Award and all other matters relating to Awards, prescribe rules and regulations for the administration of the Plan, construe and interpret the Plan and correct defects, supply omissions or reconcile inconsistencies therein, and to make all other decisions and determinations as the Committee may deem necessary or advisable for the administration of the Plan.  In exercising any discretion granted to the Committee under the Plan or pursuant to any Award, the Committee shall not be required to follow past practices, act in a manner consistent with past practices, or treat any Participant in a manner consistent with the treatment of any other Participants.  Decisions of the Committee shall be final, conclusive and binding on all persons or entities, including the Company, any Subsidiary, any Affiliate or any Participant or Beneficiary.

(b)Manner of Exercise of Committee Authority.  The Committee may delegate to members of the Board, or officers or managers of the Company or any Subsidiary, or committees thereof, the authority, subject to such terms and limitations as the Committee shall determine, to perform such functions, including administrative functions, as the Committee may determine to the extent that such delegation will not result in the loss of an exemption under Rule 16b-3(d)(1) for Awards granted to Participants subject to Section 16 of the Securities and Exchange Act of 1934, as amended, in respect of the Company. The Committee may appoint agents to assist it in administering the Plan.  

(c)Limitation of Liability.  The Committee, and each member thereof, shall be entitled to, in good faith, rely or act upon any report or other information furnished to him or her by any officer or employee, the Company’s independent auditors, consultants or any other agents assisting in the administration of the Plan.  Members of the Committee, and any other member of the Board and any officer or employee acting at the direction or on behalf of the 

[11]

 

Committee, shall not be personally liable for any action or determination taken or made in good faith with respect to the Plan, and shall, to the extent permitted by law, be fully indemnified and protected by the Company with respect to any such action or determination.

(d)No Claim for Benefits Required.  Benefits due and owing to a Participant under the Plan shall be paid when due without any requirement that a claim for benefits be filed. However, any Participant who has not received the benefits to which Participant believes himself or herself entitled may file a written claim with the Committee, which shall act on the claim within thirty days. If a Participant’s employment agreement conflicts with any provision of this Plan, the language of the Plan shall govern.

(e)Payments to Beneficiary.  Any vested benefits payable to any Participant that have not been paid as of the date of the Participant’s death, shall be paid to the Participant’s Beneficiary.

Awards Subject to Plans

.  The Awards under this Plan, and the grants of Restricted Stock, Restricted Stock Units and Options pursuant to this Plan, are being granted pursuant to and in accordance with the terms and conditions of this Plan and the Incentive Compensation Plan, and the Award Agreements.

No Acceleration of Benefits

.  In no event shall the acceleration of the time or schedule of any payment under the Plan be permitted, except to the extent that such acceleration would not violate Section 409A of the Code and the Treasury Regulations and other applicable guidance issued thereunder.

Amendment and Termination

.  This Plan may be amended or terminated in any respect at any time by the Committee; provided, however, that no amendment or termination of the Plan shall be effective to reduce any benefits payable to a Participant that may accrue or vest under the terms of this Plan without the Participant’s prior written consent. If and to the extent permitted without violating the requirements of Section 409A of the Code, the Committee may require that the Awards of all Participants be distributed as soon as practicable after such termination. If and to the extent that the Committee does not accelerate the timing of distributions on account of the termination of the Plan pursuant to the preceding sentence, payment of any remaining benefits under the Plan shall be made at the same times and in the same manner as such distributions would have been made under the terms of the Plan, as in effect at the time the Plan is terminated.

Unfunded Obligation

.  The obligations of the Company to pay any benefits under the Plan shall be unfunded and unsecured, and any payments under the Plan shall be made from the general assets of the Company. Participants’ rights under the Plan are not assignable or transferable except to the extent that such assignment or transfer is permitted under the terms of the Incentive Compensation Plan.

Withholding

.  The Participants and personal representatives shall bear any and all federal, state, local or other taxes imposed on benefits under the Plan. The Company may deduct from any distributions under the Plan the amount of any taxes required to be withheld from such distribution by any federal, state, local or foreign government, and may deduct from any compensation or other amounts payable to the Participant the amount of any taxes required to be withheld with respect to any other amounts under the Plan by any federal, state, local or foreign government.

[12]

 

Applicable Law

.  This Plan shall be construed and enforced in accordance with the laws of the State of Delaware, except to the extent superseded by federal law.

15.No Right to Continued Employment.  No Award shall confer upon any Participant any right to continued service with the Company or any of its Affiliates.

Code Section 409A

.  

(a)Interpretation of Plan.  Although the Committee does not guarantee the tax treatment of any payments under the Plan, the intent of the Committee is that the payments and benefits under the Plan be exempt from, or comply with, Section 409A of the Code and all Treasury Regulations and guidance promulgated thereunder (“Code Section 409A”) and to the maximum extent permitted the Plan shall be limited, construed and interpreted in accordance with such intent.  In no event whatsoever shall the Committee or the Company or its affiliates or their respective officers, directors, employees or agents be liable for any additional tax, interest or penalties that may be imposed on any Participant by Code Section 409A or damages for failing to comply with Code Section 409A.  

(b)Separate Payments.  For purposes of Code Section 409A (including, without limitation, for purposes of Treasury Regulation Section 1.409A-2(b)(2)(iii)), the right to receive payments in the form of installment payments shall be treated as a right to receive a series of separate payments and, accordingly, each installment payment shall at all times be considered a separate and distinct payment.  Whenever a payment under this Plan may be paid within a specified period, the actual date of payment within the specified period shall be 

(c)Section 409A Amendments.  The Committee, in its sole discretion, and without the consent of any Participant or Beneficiary, may amend the provisions of this Plan to the extent that the Committee determines that such amendment is necessary or appropriate in order for the Awards made pursuant to the Plan to be exempt from the requirements of Section 409A, or if and to the extent that the Committee determines that Awards are not so exempt, to amend the Plan (and any agreements relating to any Awards) in such manner as the Committee shall deem necessary or appropriate to comply with the requirements of Section 409A.

(d)No Right to Section 409A Indemnification.  Notwithstanding the foregoing, the Company does not make any representation to any Participant or Beneficiary that the Awards made pursuant to this Plan are exempt from, or satisfy, the requirements of Section 409A, and the Company shall have no liability or other obligation to indemnify or hold harmless any Participant or Beneficiary for any tax, additional tax, interest or penalties that the Participant or Beneficiary may incur in the event that any provision of the Plan or any Award agreement, or any amendment or any modification thereof, or any other action taken with respect thereto, is deemed to violate any of the requirements of Section 409A.

(e)Six Month Delay for Specified Employees.  If a Participant is a “specified employee,” as that term is defined for purposes of Section 409A, then no payment or benefit that is payable on account of the Participant’s “separation from service,” as that term is defined for purposes of Section 409A, shall be made before the date that is six months after the Participant’s “separation from service” (or, if earlier, the date of the Participant’s death) if and to the extent that such payment or benefit constitutes nonqualified deferred compensation (or may be nonqualified deferred compensation) under Section 409A and such deferral is required to comply with the requirements of Section 409A.  Any payment or benefit delayed by reason 

[13]

 

of the prior sentence shall be paid out or provided in a single lump sum at the end of such required delay period in order to catch up to the original payment schedule.

No Assignment

.  Neither any Participant nor any Beneficiary nor any other person shall have any right to assign the rights to receive any payments or benefits hereunder, in whole or in part, which payments and benefits are non-assignable and non-transferable, whether voluntarily, or involuntarily.

MIA 186316679v2

4831-9633-9571, v. 4

[14]Exhibit 10.1

 

Execution Version

 

Sixth Amendment to Credit
Agreement and Limited Waiver

 

This Sixth Amendment
to Credit Agreement and Limited Waiver (this “Amendment”) is entered into as of November 30, 2018,
by and among Limbach Facility Services LLC, a Delaware limited liability company
(the “Borrower”), Limbach Holdings LLC, a Delaware limited liability
company (the “Parent”), the other Guarantors party hereto, the Lenders party hereto, and Fifth
Third Bank, an Ohio banking corporation, as Administrative Agent and L/C Issuer.

 

Recitals:

 

A.           The
Borrower, the Parent, the other Guarantors party thereto, the Lenders party thereto, and the Administrative Agent are party to
a Credit Agreement dated as of July 20, 2016 (as amended, modified, restated, or supplemented from time to time, the
“Credit Agreement”).

 

B.           The
Borrower has advised the Administrative Agent and the Lenders that Limbach, Inc. and its Subsidiaries have not satisfied certain
provisions of the Credit Agreement as hereinafter described; and the Administrative Agent and the Required Lenders have agreed
to waive the resulting defaults under the terms and conditions set forth in this Amendment.

 

C.           The
Borrower, the Administrative Agent and the Required Lenders have also agreed to make certain amendments to the Credit Agreement
pursuant to the terms and conditions set forth herein.

 

Now,
Therefore, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties
hereto agree as follows:

 

Section 1.            Incorporation
of Recitals; Defined Terms.

 

The Borrower and the
Guarantors acknowledge that the Recitals set forth above are true and correct. This Amendment shall constitute a Loan Document,
and the Recitals shall be construed as part of this Amendment. Each capitalized term used but not otherwise defined herein, including
capitalized terms used in the introductory paragraph hereof and the Recitals, has the meaning assigned to it in the Credit Agreement.

 

Section
2.            Limited Waiver.

 

2.1.         Violations.
The Borrower has informed the Administrative Agent and the Lenders that:

 

(a)          Limbach, Inc.
and its Subsidiaries have failed to comply with the Senior Leverage Ratio covenant set forth in Section 6.20(b) of the Credit
Agreement for the September 30, 2018 test date; and

 

     

     

    

 

(b)          Limbach, Inc.
and its Subsidiaries have failed to comply with the Fixed Charge Coverage covenant set forth in Section 6.20(c) of the Credit
Agreement for the September 30, 2018 test date (the violations described in the foregoing clauses (a) and (b) are collectively
referred to herein as the “Financial Covenant Violations”).

 

2.2.          Limited
Waiver. Upon satisfaction of the conditions precedent set forth in Section 4 below and subject to the terms hereof, the
Administrative Agent and the Required Lenders party hereto waive the Financial Covenant Violations and any Defaults or Events of
Default arising solely from the Financial Covenant Violations. The Borrower and the Guarantors acknowledge that the waiver under
this Section 2 is specifically limited to the terms hereof, is a one-time waiver and shall not be deemed to be a waiver of
any Defaults or Events of Default other than those arising solely in respect of the Financial Covenant Violations.

 

2.3.          Scope.
This limited waiver and consent shall be limited specifically as written herein and shall be solely a consent and waiver as provided
herein. This Amendment shall not constitute a consent to any other transactions prohibited by the Credit Agreement or any other
Loan Document, nor shall this Section 2 be a waiver or modification of any other term, provision or condition of the Credit Agreement
or any other Loan Document.

 

Section
3.            Amendments.

 

Upon satisfaction of
the conditions precedent set forth in Section 4 hereof, the Credit Agreement shall be and hereby is amended as follows:

 

3.1.          Section
1.1 of the Credit Agreement (Definitions) is amended to add thereto in appropriate alphabetical order the following definitions:

 

“Beneficial
Owner” means, for the Borrower, each of the following: (a) each individual, if any, who, directly or indirectly,
owns 25% or more of the Borrower's Ownership Interests; and (b) a single individual with significant responsibility to control,
manage, or direct the Borrower.

 

“Bonded
Accounts” means Accounts subject to any Liens or other encumbrances in favor of the Bonding Company under any Bonding
Agreements or pursuant to any Legal Requirements.

 

“Certificate
of Beneficial Ownership” means a certificate in form and substance acceptable to the Administrative Agent (as amended
or modified by the Administrative Agent from time to time in its sole discretion), certifying, among other things, the Beneficial
Owner of the Borrower.

 

“Sixth
Amendment” means that certain Sixth Amendment to Credit Agreement and Limited Waiver dated as of November 30, 2018, among
the Borrower, the Parents, the Administrative Agent and the Lenders party thereto.

 

“Sixth
Amendment Effective Date” means November 30, 2018

 

    	 	-2-	 

     

    

 

3.2.         The
definitions of “EBITDA”, “Fixed Charge Coverage Ratio”, “Fixed Charges”,
“Revolving Credit Commitment”, “Revolving Credit Termination Date”, and “Swing Line
Sublimit” set forth in Section 1.1 of the Credit Agreement (Definitions) are amended and restated in their entirety to
read as follows:

 

“EBITDA”
means, with reference to any period, Net Income for such period plus,
without duplication, the sum of all amounts deducted in arriving at such Net Income amount in respect of (a) Interest Expense
for such period, (b) federal, state, and local income taxes for such period, (c) depreciation of fixed assets and amortization
of intangible assets for such period, (d) non-cash charges, including stock based compensation expenses, incurred during such period,
and (e) the limited waiver fee in the amount of $300,000 paid during such period in connection with the Limited, Conditional,
and Temporary Waiver and Agreement Regarding Loan Documents dated November 19, 2018, minus all amounts included
in arriving at such Net Income in respect of non-cash gains realized during such period.

 

“Fixed
Charge Coverage Ratio” means, at any time the same is to be determined, the ratio of (a) EBITDA for the four consecutive
fiscal quarters of Limbach, Inc. and its Subsidiaries then most recently ended less Capital Expenditures made by Limbach,
Inc. and its Subsidiaries during the same four consecutive fiscal quarters not financed with Indebtedness to (b) Fixed Charges
for the same four consecutive fiscal quarters; provided that, notwithstanding the foregoing, for that fiscal quarter of
Limbach, Inc. ending on or about March 31, 2019, the EBITDA, Capital Expenditures, and Fixed Charges shall be such amounts for
the two consecutive fiscal quarters then ending and for the fiscal quarter of Limbach, Inc. ending on or about June 30, 2019, the
EBITDA, Capital Expenditures, and Fixed Charges shall be such amounts for the three consecutive fiscal quarters then ending and
thereafter shall be for the trailing four fiscal quarters of Limbach, Inc.

 

“Fixed
Charges” means, with reference to any period, the sum of (a) all scheduled payments of principal made or to be made during
such period with respect to Indebtedness (for clarity, excluding mandatory prepayments pursuant to Section 2.8(b)(v)) (“Principal
Payments”) of Limbach, Inc. and its Subsidiaries other than in respect of the
Bridge Term Loans payable on the maturity date therefore, plus (b) the cash portion of any Interest Expense for such
period, plus (c) Restricted Payments made by Limbach, Inc. and its Subsidiaries during such period pursuant to Section 6.15(b),
plus (d) without duplication, federal, state, and local income taxes paid in cash by Limbach, Inc. and its Subsidiaries
during such period.

 

    	 	-3-	 

     

    

 

“Revolving
Credit Commitment” means, as to any Lender, the obligation of such Lender to make Revolving Loans and to participate
in Swing Loans and Letters of Credit issued for the account of the Borrower hereunder in an aggregate principal or face amount
at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 1.1 attached
hereto and made a part hereof, as the same may be reduced, increased or otherwise modified at any time or from time to time pursuant
to the terms hereof. The Borrower and the Lenders acknowledge and agree that the Revolving Credit Commitments of the Lenders aggregate
$25,000,000 on the Sixth Amendment Effective Date; provided that, notwithstanding anything to the contrary contained herein, the
Revolving Credit Commitments of the Lenders shall be automatically reduced to $22,500,000 on December 31, 2018 (the “First
Commitment Decrease Date”) and $20,000,000 on January 31, 2019 (the “Second Commitment Decrease Date”).

 

“Revolving
Credit Termination Date” means March 31, 2020 or such earlier date on which the Revolving Credit Commitments are terminated
in whole pursuant to Section 2.10, 7.2 or 7.3.

 

“Swing
Line Sublimit” means $5,000,000, as reduced pursuant to the terms hereof; provided that, notwithstanding anything
to the contrary contained herein, the Swing Line Sublimit shall be automatically reduced to $0 on December 31, 2018.

 

3.3.          The
introductory clause in the definition of “Eligible Accounts” in Section 1.1 of the Credit Agreement (Definitions)
prior to the initial proviso in that definition is amended and restated in its entirety to read as follows:

 

“Eligible
Accounts” means those Accounts of each of the Loan Parties as to which the Administrative Agent has a first priority
perfected Lien that comply with all of the representations and warranties made to the Administrative Agent and the Lenders under
this Agreement and the other Loan Documents;

 

3.4.         Clause
(s) of the definition of “Eligible Accounts” in Section 1.1 of the Credit Agreement is amended and restated
in its entirety to read as follows:

 

(s)          (i)
Accounts in which the Administrative Agent (for the benefit of the Lenders) does not have a valid and enforceable first priority
perfected security interest, and (ii) Bonded Accounts; and

 

3.5.         Section
2.7(a) of the Credit Agreement shall be amended and restated in its entirety to read as follows:

 

(a)          Scheduled Payments of Term Loans. The Borrower shall make principal payments on the Term Loans in equal installments on
the last Business Day of each March, June, September, and December in each year, commencing with the calendar quarter ending September 30, 2016
(unless any such day is not a Business Day, in which event such payment is due on the immediately preceding Business Day) with
the amount of each such principal installment then due equal to the amount expressed next to the due date (unless any such day
is not a Business Day, in which event such payment is due on the immediately preceding Business Day) for such installment on the
following schedule:

 

    	 	-4-	 

     

    

 

	Principal Installment

Due Date	 	Principal Installment

Payment
    Amount	 
	 	 	 	 
	September 30, 2016	 	$	750,000	 
	 	 	 	 	 
	December 31, 2016	 	$	750,000	 
	 	 	 	 	 
	March 31, 2017	 	$	750,000	 
	 	 	 	 	 
	June 30, 2017	 	$	750,000	 
	 	 	 	 	 
	September 30, 2017	 	$	750,000	 
	 	 	 	 	 
	December 31, 2017	 	$	750,000	 
	 	 	 	 	 
	March 31, 2018	 	$	750,000	 
	 	 	 	 	 
	June 30, 2018	 	$	750,000	 
	 	 	 	 	 
	September 30, 2018	 	$	900,000	 
	 	 	 	 	 
	December 31, 2018	 	$	900,000	 
	 	 	 	 	 
	March 31, 2019	 	$	900,000	 
	 	 	 	 	 
	June 30, 2019	 	$	900,000	 
	 	 	 	 	 
	September 30, 2019	 	$	900,000	 
	 	 	 	 	 
	December 31, 2019	 	$	900,000	 

 

; it being
further agreed that a final payment comprised of all principal and interest not sooner paid on the Term Loans, shall be due and
payable on March 31, 2020, the final maturity thereof. Each principal payment on the Term Loans shall be applied to the Lenders
holding the Term Loans pro rata based upon their Term Loan Percentages.

 

3.6.         A
new Section 5.28 (Certificate of Beneficial Ownership) is added
to the Credit Agreement at the end of Section 5 to read as follows:

 

Section
5.28. Certificate of Beneficial Ownership. The Certificate of Beneficial Ownership executed and delivered to the Administrative
Agent and the Lenders from time to time in accordance with this Agreement (including any updates thereto), is accurate, complete
and correct as of the date any such delivery or update. The Borrower acknowledges and agrees that the Certificate of Beneficial
Ownership, once delivered, is one of the Loan Documents.

 

    	 	-5-	 

     

    

 

3.7.         A
new sentence is added to the end of Section 6.13 of the Credit Agreement
(Consolidation, Merger, and Sale of Assets) to read as follows:

 

For all purposes under the Loan
Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction’s
laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different
Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new
Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders
of its equity interests at such time.

 

3.8.         Clauses
(a)-(d) of Section 6.20 of the Credit Agreement (Financial Covenants) are amended and restated in their entirety to read as follows:

 

(a)          Minimum
EBITDA. EBITDA of Limbach, Inc. and its Subsidiaries for the fiscal quarter ending December 31, 2018, shall not be less than
$6,500,000. Notwithstanding anything to the contrary contained herein, for purposes of calculating compliance with this Section
6.20(a), EBITDA for such test period shall be determined based on the financial results of Limbach, Inc. and its Subsidiaries for
the financial quarter then ending. The Loan Parties failure to achieve the minimum EBITDA requirements set forth in this clause
(a) for the test period ended December 31, 2018 shall constitute an Event of Default under Section 7.1(b) of the Credit Agreement
and, without limiting the foregoing and in addition to all other fees and amounts payable, the Borrower shall pay an EBITDA covenant
fee of $300,000 for such violation, which fee shall be immediately due and payable. All fees payable pursuant to this Section 6.20(a)
shall be payable to the Administrative Agent for the ratable benefit of the Lenders and any payment of such fees shall not constitute
any satisfaction or waiver of any Event of Default arising from the corresponding violation.

 

(b)          Fixed
Charge Coverage Ratio. As of the last day of each fiscal quarter of Limbach, Inc. ending on or after March 31, 2019,
Limbach, Inc. and its Subsidiaries shall maintain a Fixed Charge Coverage Ratio of not less than 1.10:1.00. The
Loan Parties failure to achieve the required Fixed Charge Coverage Ratio as of any such quarter end shall constitute an Event of
Default under Section 7.1(b) of the Credit Agreement and, without limiting the foregoing and in addition to all other fees and
amounts payable, the Borrower shall pay a Fixed Charge Coverage Ratio covenant fee of $300,000 for each such violation, which fee
shall be immediately due and payable. All fees payable pursuant
to this Section 6.20(b) shall be payable to the Administrative Agent for the ratable benefit of the Lenders and any payment of
such fees shall not constitute any satisfaction or waiver of any Event of Default arising from the corresponding violation.

 

    	 	-6-	 

     

    

 

(c)          Unfinanced
Capital Expenditures. The unfinanced Capital Expenditures of the Loan Parties shall not exceed (i) for the fiscal quarter
of Limbach, Inc. ending March 31, 2019, $1,000,000; (ii) for
the fiscal quarter of Limbach, Inc. ending June 30, 2019,
$1,000,000; (iii) for the fiscal quarter of Limbach, Inc. ending
September 30, 2019, $1,000,000; (iv) for the fiscal quarter of Limbach, Inc. ending December 31, 2019, $0; and (v) for
the fiscal year of Limbach, Inc. ending December 31, 2019, $3,000,000; provided that, (x) the vehicle leases shall
be excluded from this limit; and (y) no unfinanced Capital Expenditures, including for vehicle leases, shall be permitted on and
after any quarter end date on which the Loan Parties fail to achieve the required Fixed Charge Coverage Ratio for such date.

 

(d)          [Reserved.]

 

3.9.         New
Sections 6.29 (Additional Agreements) and 6.30 (Certificate of Beneficial Ownership and Additional Information) are added to the
Credit Agreement at the end of Section 6 to read as follows:

 

Section
6.29.         Additional Agreements. (a) Limitations on Indebtedness, etc.
The Loan Parties acknowledge and agree that, commencing with the Sixth
Amendment Effective Date and at all times thereafter and notwithstanding anything to the contrary contained in the Credit Agreement,
the Loan Parties shall not make any Permitted Acquisitions, Restricted Payments (other than to another Loan Party), or voluntary
prepayment of any Indebtedness (other than of Revolving Loans) or any other obligation or liability, or incur any additional Indebtedness
(other than vehicle leases to the extent permitted by clause 7(d)(iii) and advances of Revolving Loans), other than any Indebtedness
the cash proceeds of which are used to pay in full all outstanding Obligations.

 

(b)          Refinancing
Efforts. The Loan Parties shall actively solicit proposals from other lenders to refinance all of the Obligations, and the
Loan Parties shall promptly advise the Administrative Agent of all refinancing proposals they receive. Without limiting the foregoing,
(i) on or before February 15, 2019, the Loan Parties shall deliver to the Administrative Agent and the Lenders one or more term
sheets from prospective lenders that will provide a full payment in cash of all Obligations; (ii) on or before March 15, 2019,
the Loan Parties shall deliver to the Administrative Agent and the Lenders at least one fully-executed commitment letter
or confirmation that documentation of definitive agreements consistent with a previously delivered term sheet is in process, with
such confirmation being acceptable in form and substance to the Lenders in their sole discretion, that
will provide a full payment in cash of all Obligations on or before April 12, 2019; and (iii) on or before April 12, 2019, the
Obligations shall be paid in full in cash with the proceeds of refinancing credit facilities. In the event the Loan Parties fail
to deliver the required term sheet within the time period required in accordance with the foregoing clause (i), the Borrower shall
pay a fee of $250,000 to the Administrative Agent for the ratable
benefit of the Lenders, which fee shall be immediately due and payable. In the event the Loan Parties fail to deliver the required
commitment letter or confirmation within the time period required in accordance with the foregoing clause (ii), the Borrower shall
pay a fee of $250,000 to the Administrative Agent for the ratable
benefit of the Lenders, which fee shall be immediately due and payable. In the event the Loan Parties fail to pay the Obligations
in full in cash within the time period required in accordance with the foregoing clause (iii), the Borrower shall pay a fee of
$500,000 to the Administrative Agent for the ratable benefit of
the Lenders, which fee shall be immediately due and payable.

 

    	 	-7-	 

     

    

 

(c)          Additional
Reporting.

 

(i)          Cash
Flow and Variance Reports. On the 15th (if a Business Day, if not, the first Business Day thereafter) and last Business Day
of each month after the Sixth Amendment Effective Date, the Loan Parties shall deliver to the Administrative Agent and the Lenders
a then current 13-week cash flow forecast showing projected cash receipts and disbursements (including referencing line item sources
and uses of cash) over the following 13-week period, together with a reconciliation of actual cash receipts and cash disbursements
from the prior week against the previous cash flow forecast, showing any deviations on a cumulative basis, and providing a written
explanation of each deviation, with such forecast and report being otherwise in form and substance reasonably acceptable to the
Administrative Agent.

 

(ii)         Bonding
Company. Each fiscal month after the Sixth Amendment Effective Date (commencing December 2018), the Loan Parties shall deliver
to the Administrative Agent and the Lenders a report on all applications or requests for bonds, sureties, or similar support submitted
by any Loan Party to the Bonding Company during the prior fiscal month and the Bonding Company’s response to each such application
or request, including approvals and denials thereof, with such report also including a summary of all other material communications
between any of the Loan Parties and the Bonding Company that occurred during the prior fiscal month, and including any changes
with respect to the Bonding Agreements and the Bonding Company’s performance or intended performance under such agreements,
which report shall be in form and substance reasonably acceptable to the Administrative Agent.

 

(iii)        Refinancing
Efforts.  Every other week after the Sixth Amendment Effective Date, the Loan Parties shall deliver to the Administrative Agent
and the Lenders a report (which report may be made by email) providing an update on and status of the refinancing required by Section
6.29(b) hereof and the Loan Parties ability to meet the milestones required by such clause.

 

(iv)        Other
Information. Commencing with the Sixth Amendment Effective Date and at all times thereafter, the Loan Parties shall provide
such other information reasonably requested by the Administrative Agent or any Lender.

 

    	 	-8-	 

     

    

 

Section
6.30. Certificate of Beneficial Ownership and Additional Information. The Borrower shall provide to the Administrative Agent
and the Lenders: (a) from time to time promptly upon request by any Lender, confirmation of the accuracy of the information set
forth in the most recent Certificate of Beneficial Ownership provided to the Administrative Agent and the Lenders, (b) a new Certificate
of Beneficial Ownership, in form and substance acceptable to the Administrative Agent and each Lender, when the individual(s) to
be identified as a Beneficial Owner have changed, and (c) such other information and documentation as may reasonably be requested
by the Administrative Agent or any Lender from time to time for purposes of compliance by the Administrative Agent or such Lender
with applicable laws (including without limitation the USA Patriot Act and other "know your customer" and anti-money
laundering rules and regulations), and any policy or procedure implemented by the Administrative Agent or such Lender to comply
therewith.

 

3.10.        Clause
(b) of Section 7.1 of the Credit Agreement (Events of Default) is amended and restated in its entirety to read as follows:

 

(b)          default
in the observance or performance of any covenant set forth in Sections 6.1, 6.4, 6.7, 6.8, 6.9, 6.10, 6.11, 6.12, 6.13, 6.14,
6.15, 6.16, 6.17, 6.18, 6.19, 6.20, 6.21, 6.22, 6.25, 6.26, 6.27, 6.28, 6.29 or 6.30 or of any provision in any Loan Document dealing
with the use, disposition or remittance of the proceeds of Collateral or requiring the maintenance of insurance thereon;

 

3.11.        Exhibit
E to Credit Agreement (Compliance Certificate) is amended and restated in its entirety by Exhibit E attached hereto.

 

3.12.        Exhibit
H to Credit Agreement (Borrowing Base Certificate) is amended and restated in its entirety by Exhibit H attached hereto.

 

3.13.        A
new Schedule 1.1 is added to the Credit Agreement in the form of Schedule 1.1 attached hereto.

 

Section
4.           Conditions Precedent.

 

The effectiveness of
this Amendment is subject to the satisfaction of all of the following conditions precedent:

 

4.1.          The
Administrative Agent shall have received this Amendment executed and delivered by each of the applicable parties hereto.

 

4.2.          The
representations and warranties contained in the Loan Documents shall be true and correct in all material respects as of the Sixth
Amendment Effective Date and, after giving effect to this Amendment, no Default or Event of Default shall exist as of the Sixth
Amendment Effective Date.

 

4.3.          The
Administrative Agent shall have received updated (i) UCC searches against each Loan Party from the state of its organization, (ii)
UCC lien searches against the following prior business names from the Delaware Secretary of State: (A) Limbach Engineering &
Design Services, (B) Sabo/Limbach Energy Services, and (C) Western Air Limbach, and (iii) tax lien, judgment and/or pending suit
searches with respect to each Loan Party from the county and the supporting courts that serve such county where the chief executive
office of each respective Loan Party is located.

 

    	 	-9-	 

     

    

 

4.4.          The
Administrative Agent shall have received an updated (i) Evidence of Commercial Property Insurance certificate on an Acord Form
28 (or other form reasonably acceptable to the Administrative Agent) listing each of the Loan Parties as the insured, covering
all of the personal property and real property owned by each of them at all locations, and naming the Administrative Agent as the
lender’s loss payable and mortgagee, and (ii) Certificate of Liability Insurance certificate on an Acord Form reasonably
acceptable to the Administrative Agent listing the Loan Parties as the insureds and the Administrative Agent as an additional insured,
in each case, together with any applicable endorsement forms reasonably required by the Administrative Agent in connection with
such certificates.

 

4.5.          The
Loan Parties shall have delivered to the Administrative Agent a property search with respect to that real property commonly known
as to 926 Featherstone Road, Pontiac, Michigan 58342 (the “Michigan Real Estate”) confirming that no Liens (other
than Permitted Liens) have been added to encumber the Michigan Real Estate after June 26, 2017.

 

4.6.          A
UCC-1 in the form of Annex A attached hereto shall have been filed against the Michigan Real Estate with the Register of Deeds
Office in Oakland County, Michigan.

 

4.7.          Each
of the Loan Parties shall have delivered to the Administrative Agent a good standing certificate and certified articles of incorporation,
articles of organization or other applicable formation agreement from the appropriate Governmental Authority in the jurisdiction
of its formation or organization, with each such document dated no earlier than 30 days before the Sixth Amendment Effective Date.

 

4.8.          The
Loan Parties shall have executed and delivered to the Administrative Agent an Omnibus Amendment and Reaffirmation Agreement in
the form of Annex B attached hereto.

 

4.9.          The
Borrower shall have paid to the Administrative Agent for the ratable benefit of the Lenders an amendment fee in the amount of $100,000,
and the Borrower shall have paid all reasonable invoiced fees and expenses of the Administrative Agent’s counsel.

 

4.10.         Legal
matters incident to the execution and delivery of this Amendment shall be satisfactory to the Administrative Agent and its counsel.

 

    	 	-10-	 

     

    

 

Section 5.           Condition
Subsequent.

 

5.1.       Successor
Consultant. Upon the request of the Administrative Agent or at the direction of the Required Lenders, the Loan Parties
shall engage a consultant (such engaged entity, the “Successor Consultant”); provided that, the
Successor Consultant shall be acceptable to the Administrative Agent and the Required Lenders and the scope of the Successor
Consultant’s engagement shall be acceptable to the Administrative Agent and the Required Lenders. The Loan Parties
shall authorize the Successor Consultant to communicate directly with the Administrative Agent and the Lenders with respect
to the Consultant’s engagement, its services performed, and any and all information gathered therefrom.

 

5.2.       Credit
Card Agreements. On or before January 31, 2019 (or such later date as agreed to by the Administrative Agent in its sole
discretion), the Borrower shall terminate any and all commercial card agreements with the Administrative Agent and shall pay
in cash all liabilities and obligations owing thereunder.

 

5.3.         Control
Agreements. To the extent any Loan Party has accounts (other than Excluded Deposit Accounts) with any depository institution
other than the Administrative Agent, the Loan Parties shall use commercially reasonable efforts to cause each such depository institution
to enter into springing control agreements with respect to such accounts in favor of the Administrative Agent in form and substance
reasonably acceptable to the Administrative Agent by not later than December
20, 2018 (or such later date as agreed to by the Administrative Agent in its sole discretion).

 

5.4.         Collateral
Access Agreements. To the extent not previously
delivered, to the extent requested by the Administrative Agent, the Loan Parties shall use commercially reasonable efforts to
cause the applicable third party (including any landlord, warehouseman, consignee, bailee, customs broker or other similar person)
to execute and deliver to the Administrative Agent within 45 days following a request a Collateral Access Agreement with respect
to the applicable Collateral, which Collateral Access Agreement shall be in form and substance reasonably acceptable to the Administrative
Agent.

 

5.5.         Vehicle
Titles. Without limiting the Administrative
Agent’s rights under Section 4.1 of the Credit Agreement not later than March 31, 2019, the appropriate Governmental
Authority with respect to each vehicle and any other goods that are owned by any Loan Party and are that are subject to a certificate
of title law shall issue revised a certificate of title noting a Lien on the applicable titled vehicle in favor of the Administrative
Agent and which shall otherwise be a perfected Lien on such property in favor of the Administrative Agent.

 

5.6.         Life
Insurance Policies. Before March 31, 2019, the issuer of each life insurance policy which names a Loan Party as a beneficiary
shall execute and deliver to the Administrative Agent an assignment of such Loan Party’s interest in such policy to the Administrative
Agent, which assignment shall be acknowledged and agreed to by such Loan Party and shall otherwise be in form and substance reasonably
acceptable to the Administrative Agent.

 

    	 	-11-	 

     

    

 

5.7.         Mortgage
Supplement. On or before December 20, 2018 (or such later date as
agreed to by the Administrative Agent in its sole discretion), Limbach Company LLC shall execute and deliver a notarized
First Supplement to Mortgage with regard to that Mortgage against the Michigan Real Estate from Limbach Company LLC in favor of
the Administrative Agent, dated as of June 15, 2017, and recorded in the Register of Deeds Office of Oakland County, Michigan on
June 26, 2017, as number 122095 in Liber 50802, at Page 846 (the “Michigan Mortgage”), which First Supplement
to Mortgage shall (a) supplement the Michigan Mortgage to add in the Bridge Loans to the Secured Indebtedness thereunder,
and as defined therein, and (b) be in the form of Annex C attached hereto and made a part hereof.

 

5.8.         Events
of Default. The undersigned hereby agree that failure to comply with any of the foregoing requirements set forth in Sections
5.1 through and including 5.7 of this Amendment shall constitute an automatic Event of Default under Section 7.1 of the Credit
Agreement.

 

Section
6.          Affirmation of Guarantors.

 

Each Guarantor hereby
confirms that, after giving effect to this Amendment, each Loan Document to which such Guarantor is a party continues in full force
and effect and is the legal, valid and binding obligation of such Guarantor, enforceable against such Guarantor in accordance with
its terms except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement
of creditors’ rights generally or by equitable principles relating to enforceability. The Borrower and each Guarantor acknowledge
and agree that (a) nothing in the Credit Agreement, this Amendment, or any other Loan Document shall be deemed to require the consent
of such Guarantor to any future amendments to the Credit Agreement and (b) the Lenders are relying on the assurances provided in
this Section in entering into this Amendment and maintaining credit outstanding to the Borrower.

  

Section
7.          Acknowledgement of Liens. 

 

The Borrower and the
Guarantors hereby acknowledge, confirm and agree that the Administrative Agent has a valid, enforceable and perfected first-priority
lien upon and security interest in the Collateral granted to the Administrative Agent pursuant to the Loan Documents (subject only
to Permitted Liens), and nothing herein contained shall in any manner affect or impair the priority of the Liens created and provided
for thereby as to the indebtedness, obligations, and liabilities which would be secured thereby prior to giving effect to this
Amendment.

 

Section 8.          Representations
and Warranties of Borrower and Guarantors.

 

To induce the Administrative
Agent and the Lenders to enter into this Amendment, the Borrower and the Guarantors hereby represent and warrant to the Administrative
Agent and the Lenders that, as of the date hereof, (a) after giving effect to this Amendment, the representations and warranties
set forth in Section 5 of the Credit Agreement and in the other Loan Documents, including this Amendment, are and shall remain
true and correct (or, in the case of any representation or warranty not qualified as to materiality, true and correct in all material
respects), except to the extent the same expressly relate to an earlier date (and in such case shall be true and correct (or, in
the case of any representation or warranty not qualified as to materiality, true and correct in all material respects) as of such
earlier date), (b)  no Default or Event of Default exists or shall result after giving effect to this Amendment, and (c) the
Borrower and each Guarantor has the power and authority to execute, deliver, and perform this Amendment and have taken all necessary
action to authorize their execution, delivery, and performance of this Amendment.

 

    	 	-12-	 

     

    

 

Section 9.          Miscellaneous.

 

9.1.         This
Amendment shall be binding on and shall inure to the benefit of the Borrower, the Guarantors, the Administrative Agent, the Lenders,
and the L/C Issuer, and their respective successors and assigns. The terms and provisions of this Amendment are for the purpose
of defining the relative rights and obligations of the Borrower, the Guarantors, the Administrative Agent, the Lenders, and the
L/C Issuer with respect to the transactions contemplated hereby, and there shall be no third-party beneficiaries of any of the
terms and provisions of this Amendment.

 

9.2.         This
Amendment constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all other understandings,
oral or written, with respect to the subject matter hereof. Except as specifically waived and amended hereby, all of the terms
and conditions set forth in the Credit Agreement shall stand and remain unchanged and in full force and effect.

 

9.3.         Section and
sub-section 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.

 

9.4.         Wherever
possible, each provision of this Amendment shall be interpreted in such a manner as to be effective and valid under applicable
law, but if any provision of this Amendment shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions
of this Amendment.

 

9.5.         Except
as otherwise provided in this Amendment, if any provision contained in this Amendment is in conflict with, or inconsistent with,
any provision in any of the Loan Documents, the provision contained in this Amendment shall govern and control.

 

9.6.         This
Amendment may be executed in any number of separate counterparts, each of which shall collectively and separately constitute one
agreement. Delivery of an executed signature page to this Amendment by facsimile transmission or by e-mail transmission of an Adobe
portable document format file (also known as a “PDF” file) shall be effective as delivery of a manually executed counterpart
hereof.

 

9.7.         The
provisions contained in Sections 10.14 (Governing Law; Jurisdiction; Etc.) and 10.20 (Waiver of Jury Trial) of the Credit
Agreement are incorporated herein by reference to the same extent as if reproduced herein in their entirety, except with reference
to this Amendment rather than the Credit Agreement.

 

    	 	-13-	 

     

    

 

9.8.         Each
Lender party hereto authorizes the Administrative Agent to execute and deliver the Omnibus Amendment and Reaffirmation attached
hereto at Annex B on behalf of itself and the Lenders.

 

Section 10.         Release,
Covenant Not to Sue, Acknowledgment.

 

10.1.        Each
Loan Party (collectively, the “Releasing Parties”) hereby absolutely and unconditionally releases and forever
discharges the Administrative Agent, the L/C Issuer, and each Lender, and any and all participants, parent corporations, subsidiary
corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all of the present
and former directors, officers, agents, attorneys, consultants, representatives and employees of any of the foregoing (each a “Released
Party”), from any and all claims, demands or causes of action of any kind, nature or description relating to or arising
out of or in connection with or as a result of any of the Obligations, the Credit Agreement, and any other Loan Documents, whether
arising in law or equity or upon contract or tort or under any state or federal law or otherwise, which each Releasing Party has
had, now has or has made claim to have against any such person for or by reason of any act, omission, matter, cause or thing whatsoever
arising from the beginning of time to and including the date of this Agreement, whether such claims, demands and causes of action
are matured or unmatured or known or unknown, other than, in each instance, as determined by a court of competent jurisdiction
by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Released Party. Each
Releasing Party acknowledges that it may hereafter discover facts different from or in addition to those now known or believed
to be true with respect to such claims, demands, or causes of action and agree that this instrument shall be and remain effective
in all respects notwithstanding any such differences or additional facts. Each Releasing Party understands, acknowledges and agrees
that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against
any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provisions of such release.
The Borrower hereby confirms that the foregoing waiver and release is an informed waiver and release and is being freely given.

 

10.2.        Each
Releasing Party, on behalf of itself and its successors, assigns, and other legal representatives, hereby absolutely, unconditionally
and irrevocably, covenants and agrees with and in favor of each Released Party above that it will not sue (at law, in equity, in
any regulatory proceeding or otherwise) any Released Party on the basis of any claim released, remised and discharged by such Releasing
Party pursuant to the above release. If any Releasing Party or any of its successors, assigns or other legal representations violates
the foregoing covenant, such Releasing Party, for itself and its successors, assigns and legal representatives, agrees to pay,
in addition to such other damages as any Released Party may sustain as a result of such violation, all reasonable attorneys’
fees and costs incurred by such Released Party as a result of such violation; provided that, this sentence shall not apply
to claims, demands or causes of action asserted by a Releasing Party against a Released Party to the extent, in each instance,
determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from to the gross negligence
or willful misconduct of such Released Party.

 

[Signature
Pages to Follow]

 

    	 	-14-	 

     

    

 

In
Witness Whereof, the parties hereto have caused their duly authorized officers to execute and deliver this Amendment as
of the date first set forth above.

 

	 	“Borrower”
	 	 
	 	Limbach Facility Services LLC
	 	 
	 	By	/s/ John T. Jordan, Jr.
	 	 	Name:	John T. Jordan, Jr.
	 	 	Title:	Executive Vice President, Chief
	 	 	 	Financial Officer and Treasurer

 

[Signature
Page to Sixth Amendment to Credit Agreement and Limited Waiver (Limbach)]

 

     

     

    

 

	 	“Guarantors”
	 	 
	 	Limbach Holdings, Inc.
	 	 
	 	By	/s/ John T. Jordan, Jr.
	 	 	Name:	John T. Jordan, Jr.
	 	 	Title:	Chief Financial Officer
	 	 	 	 
	 	Limbach Holdings LLC
	 	 
	 	By	/s/ John T. Jordan, Jr.
	 	 	Name:	John T. Jordan, Jr.
	 	 	Title:	Executive Vice President, Chief
	 	 	 	Financial Officer and Treasurer
	 	 
	 	Limbach Company LLC
	 	 
	 	By	/s/ John T. Jordan, Jr.
	 	 	Name:	John T. Jordan, Jr.
	 	 	Title:	Executive Vice President, Chief
	 	 	 	Financial Officer and Treasurer
	 	 	 	 
	 	Harper Limbach LLC
	 	 	 	 
	 	By:	/s/ John T. Jordan, Jr.
	 	 	Name:	John T. Jordan, Jr.
	 	 	Title:	Treasurer
	 	 	 	 
	 	Limbach Company LP
	 	 	 	 
	 	By:	/s/ John T. Jordan, Jr.
	 	 	Name:	John T. Jordan, Jr.
	 	 	Title:	Executive Vice President, Chief
	 	 	 	Financial Officer and Treasurer
	 	 
	 	Harper Limbach Construction LLC
	 	 
	 	By:	/s/ John T. Jordan, Jr.
	 	 	Name:	John T. Jordan, Jr.
	 	 	Title:	Treasurer

 

[Signature
Page to Sixth Amendment to Credit Agreement and Limited Waiver (Limbach)]

 

     

     

    

 

	 	“Lenders”
	 	 
	 	Fifth Third Bank, an Ohio banking corporation, as a Lender, as L/C Issuer, and as Administrative Agent
	 	 
	 	By	/s/ Terick R. Hinze
	 	 	Name:	Terick R. Hinze
	 	 	Title:	Vice President - SAG

 

[Signature
Page to Sixth Amendment to Credit Agreement and Limited Waiver (Limbach)]

 

     

     

    

 

	 	CIBC Bank USA, formally known as The PrivateBank and Trust Company, as a Lender
	 	 	 	 
	 	By	/s/ David L. Sauerman
	 	 	Name:	David L. Sauerman
	 	 	Title:	Managing Director

 

[Signature
Page to Sixth Amendment to Credit Agreement and Limited Waiver (Limbach)]

 

     

     

    

 

	 	Wheaton Bank & Trust Company, as a Lender
	 	 
	 	By	/s/ David Nelson
	 	 	Name:	David Nelson
	 	 	Title:	Assistant Vice President

 

[Signature
Page to Sixth Amendment to Credit Agreement and Limited Waiver (Limbach)]

 

     

     

    

 

	 	Citizens Bank of Pennsylvania, as a Lender
	 	 
	 	By	/s/ John J. Ligday, Jr.
	 	 	Name:	John J. Ligday, Jr.
	 	 	Title:	Senior Vice President

 

[Signature
Page to Sixth Amendment to Credit Agreement and Limited Waiver (Limbach)]

 

     

     

    

 

Schedule 1.1

 

Revolving
Credit Commitments

 

	Name of Lender	 	Revolving Credit
 Commitment on
 Sixth Amendment
 Effective Date	 	 	Revolving Credit
 Commitment on
 First Commitment
 Decrease Date	 	 	Revolving Credit
 Commitment on
 Second Commitment
 Decrease Date	 
	 	 	 	 	 	 	 	 	 	 
	Fifth Third Bank	 	$	7,653,061.22	 	 	$	6,887,755.10	 	 	$	6,122,448.98	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	CIBC Bank USA	 	$	6,122,448.98	 	 	$	5,510,204.08	 	 	$	4,897,959.18	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Wheaton Bank & Trust Company	 	$	6,122,448.98	 	 	$	5,510,204.08	 	 	$	4,897,959.18	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Citizens Bank of Pennsylvania	 	$	5,102,040.82	 	 	$	4,591,836.74	 	 	$	4,081,632.66	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total:	 	$	25,000,000.00	 	 	$	22,500,000.00	 	 	$	20,000,000.00	 

 

     

     

    

 

Annex A

 

UCC-1 Financing Statement
for Fixtures

 

[See
attached.]

 

     

     

    

 

Annex B

 

Form of Omnibus Amendment
and Reaffirmation Agreement

 

[See
attached.]

 

     

     

    

 

Annex C

 

Form of Mortgage Supplement

 

[See
attached.]

 

     

     

    

 

	Exhibit E
	 
	 
	Compliance Certificate

 

Date:  __________, 20__

 

		To:	Fifth Third Bank, as Administrative Agent under, and the Lenders party to, the Credit Agreement
described below

 

Reference is made to
the Credit Agreement, dated as of July 20, 2016, by and among Limbach Facility Services
LLC, a Delaware limited liability company (the “Borrower”), Limbach
Holdings LLC, a Delaware limited liability company (the “Parent”), the other Guarantors party thereto,
the Lenders party thereto, and Fifth Third Bank, an Ohio banking corporation, as Administrative Agent and L/C Issuer (as amended,
restated, modified or supplemented from time to time, the “Credit Agreement”). Capitalized terms used herein
and not defined herein have the meanings assigned to them in the Credit Agreement. This Compliance Certificate is furnished to
the Administrative Agent and the Lenders pursuant to the Credit Agreement.

 

The
Undersigned, solely in the capacity set forth in paragraph 1 below and not in any individual capacity, hereby certifies that:

 

1.          I
am the duly elected/appointed ____________ of the Borrower.

 

2.          I
have reviewed the terms of the Credit Agreement and I have made, or have caused to be made under my supervision, a detailed review
of the transactions and conditions of the Parent and its Subsidiaries during the accounting period covered by the attached financial
statements.

 

3.          No
Default or Event of Default has occurred and is continuing during or at the end of the accounting period covered by the attached
financial statements or as of the date of this Compliance Certificate, except as set forth below.

 

4.          The
financial statements required by Section 6.1 of the Credit Agreement and being furnished to you concurrently with this Compliance
Certificate fairly and adequately present in all material respects the financial condition of the Borrower and its Subsidiaries
as of [___________], and the results of their operations and cash flows for the [quarter/year] ended, in conformity
with GAAP applied on a consistent basis.

 

5.          The
representations and warranties contained in Section 5 of the Credit Agreement are true and correct (or, in the case of any
representation or warranty not qualified as to materiality, true and correct in all material respects) as though made on and as
of such date (except to the extent such representations and warranties relate to an earlier date, in which case they are true
and correct (or, in the case of any representation or warranty not qualified as to materiality, true and correct in all material
respects) as of such earlier date).

 

     

     

    

 

6.          Schedule I
hereto sets forth financial data and computations evidencing the Loan Parties’ compliance with certain covenants of the Credit
Agreement, all of which data and computations are, to the best of my knowledge, true, complete and correct and have been made in
accordance with the relevant Sections of the Credit Agreement.

 

7.          Schedule II
hereto sets forth a comparison of current financials against the budget for such period as required by Section 6.1(d) of the
Credit Agreement.

 

8.          Attached
hereto is an updated Schedule 5.9 to the Credit Agreement, which is true, complete and correct as of the date of this Compliance
Certificate.

 

9.          Described
below are the exceptions, if any, to paragraph 3 above by listing, in detail, the nature of the condition or event, the period
during which it has existed and the action which the Borrower has taken, is taking, or proposes to take with respect to each such
condition or event:

 

	 
	 
	 
	 

 

In the event of a conflict
between the attached Schedule I and any certifications relating thereto and the Credit Agreement and related definitions used
in calculating such covenants, the Credit Agreement and such related definitions shall govern and control. The foregoing certifications,
together with the computations set forth in Schedule I hereto and the financial statements attached as Schedule II hereto
in support hereof, are made and delivered as of the date first above written.

 

	 	Limbach Facility Services LLC
	 	 	 	 
	 	By	 
	 	 	Name	 
	 	 	Title	 

 

[Signature Page to Compliance Certificate]

 

     

     

    

 

Schedule I

to
Compliance Certificate 

 

Limbach
Facility Services LLC

 

Compliance
Calculations

for
Credit Agreement dated as of July 20, 2016

 

Calculations
as of _____________, 20__

 

 

 

	A.	Minimum EBITDA (Section 6.20(a))1	 
	 	 	 	 
	 	1.	Net Income for test period	$___________
	 	 	 	 
	 	2.	Interest Expense for test period	$___________
	 	 	 	 
	 	3.	Federal, state and local income taxes for test period	$___________
	 	 	 	 
	 	4.	Depreciation and amortization expense for test period	$___________
	 	 	 	 
	 	5.	Non-cash charges, including stock-based compensation expenses, incurred during test period	$___________
	 	 	 	 
	 	6.	Limited waiver fee paid during test period in the amount of $300,000, if applicable	$___________
	 	 	 	 
	 	7.	Non-cash gains realized during test period	$___________
	 	 	 	 
	 	8.	Sum of Lines A1, A2, A3, A4, A5 and A6, minus Line A7 (“EBITDA”)	$___________
	 	 	 	 
	 	9.	EBITDA (from Line A8) must not be less than	$6,500,000
	 	 	 	 
	 	10.	Limbach, Inc. and its Subsidiaries are in compliance (circle yes or no)	yes/no

 

 

		1	Only required to be calculated for December 31, 2018 test period and such calculation shall be
based on financial results of Limbach, Inc. and its Subsidiaries for the fiscal quarter then ending.

 

     

     

    

 

	B.	Fixed Charge Coverage Ratio (Section 6.20(b))2	 
	 	 	 	 
	 	1.	EBITDA (from Line A8)3	$___________
	 	 	 	 
	 	2.	Capital Expenditures not financed with Indebtedness for test period4	$___________
	 	 	 	 
	 	3.	Line B1 minus Line B2	$___________
	 	 	 	 
	 	4.	Scheduled principal payments for test period other than in respect of Bridge Term Loans payable on maturity date	$___________
	 	 	 	 
	 	5.	Cash portion of Interest Expense for test period	$___________
	 	 	 	 
	 	6.	Restricted Payments made pursuant to Section 6.15(b) for test period	$___________
	 	 	 	 
	 	7.	Federal, state and local income taxes paid in cash for test period	$___________
	 	 	 	 
	 	8.	Sum of Lines B4, B5, B6 and B7 (“Fixed Charges”)5	$___________
	 	 	 	 
	 	9.	Ratio of Line B3 to Line B8 (“Fixed Charge Coverage Ratio”)	____:1.00
	 	 	 	 
	 	10.	Fixed Charge Coverage Ratio (from Line B9) must not be less than	1.10:1.00
	 	 	 	 
	 	11.	Limbach, Inc. and its Subsidiaries are in compliance (circle yes or no)	yes/no

 

 

		2	Calculations to commence March 31, 2019.

 

		3	Calculation to be based on: (a) for March 31, 2019 test period, two consecutive fiscal quarters
then ending; (b) for June 30, 2019 test period, three consecutive fiscal quarters then ending; and
(c) for test periods thereafter, trailing four fiscal quarters.
	 	 	 
		4	Calculation to be based on: (a) for March 31, 2019 test period, two consecutive fiscal quarters
then ending; (b) for June 30, 2019 test period, three consecutive fiscal quarters then ending; and
(c) for test periods thereafter, trailing four fiscal quarters.
	 	 	 
		5	Calculation to be based on: (a) for March 31, 2019 test period, two consecutive fiscal quarters
then ending; (b) for June 30, 2019 test period, three consecutive fiscal quarters then ending; and
(c) for test periods thereafter, trailing four fiscal quarters.

 

    	 	-2-	 

     

    

 

	C.	Unfinanced Capital Expenditures (Section 6.20(c))	 
	 	 	 
	 	1.	Unfinanced Capital Expenditures (excluding vehicle leases) for test period6	$___________
	 	 	 	 
	 	2.	Line C1 must be less than7	$___________
	 	 	 	 
	 	1.	Unfinanced Capital Expenditures (excluding vehicle leases) for fiscal year ending December 31, 20198	$3,000,000
	 	 	 	 
	 	3.	The Loan Parties are in compliance (circle yes or no)	yes/no

 

 

		6	Calculation to be based on financial results of Limbach, Inc. and its Subsidiaries for the fiscal
quarter then ending.

 

		7	Not exceed (i) for March 31, 2019
test period, $1,000,000; (ii) for June 30, 2019 test period, $1,000,000; (iii) for September 30, 2019 test
period, $1,000,000; and (iv) for December 31, 2019 test period, $0. No unfinanced Capital Expenditures, including for vehicle
leases, shall be permitted on and after any quarter end date on which the Loan Parties fail to achieve the required Fixed Charge
Coverage Ratio for such date.
	 	 	 
		8	To be included for December 31, 2019 test period only.

 

    	 	-3-	 

     

    

 

Schedule II

to
Compliance Certificate

 

Limbach
Facility Services LLC

 

Financial
Statements

for
Credit Agreement dated as of July 20, 2016

 

[See attached.]

 

     

     

    

 

Schedule III

to
Compliance Certificate

 

Limbach
Facility Services LLC

 

Schedule
of Non-Recurring, One-Time Costs and

Expenses
and Non-Cash Charges

 

     

     

    

 

Schedule 5.9

to
Compliance Certificate

 

Limbach
Facility Services LLC

 

Updated
Schedule 5.9

for
Credit Agreement dated as of July 20, 2016

 

     

     

    

 

Exhibit
H

 

Limbach Facility Services
LLC

 

Borrowing Base Certificate

for Credit Agreement dated as of July 20, 2016

 

		To:	Fifth Third Bank, as Administrative Agent under, and the
Lenders party to, the Credit Agreement described below

 

This Borrowing Base
Certificate is furnished to the Administrative Agent (the “Administrative Agent”) and the Lenders pursuant to
that certain Credit Agreement dated as of July 20, 2016, by and among Limbach Facility Services
LLC (the “Borrower”), Limbach Holdings LLC, a Delaware limited
liability company (the “Parent”), the other Guarantors party thereto, the Lenders party thereto, and Fifth Third
Bank, an Ohio banking corporation, as Administrative Agent and L/C Issuer (as amended, restated, modified or supplemented from
time to time, the “Credit Agreement”). Unless otherwise defined herein, the terms used in this Borrowing Base
Certificate and on any attachments to this Borrowing Base Certificate shall have the meanings ascribed thereto in the Credit Agreement.

 

The computations set
forth in this Borrowing Base Certificate and on any attachments to this Borrowing Base Certificate are, to the knowledge of the
undersigned, on behalf of the Borrowers, true, complete and correct as of the date of this Certificate and have been made in accordance
with the relevant sections of the Credit Agreement.

 

See
Attached Worksheet for Borrowing Base Calculation.

 

Schedule I
hereto sets forth the Schedule of Accounts evidencing the Accounts of each Loan Party, all of which data is, to the best of my
knowledge, true, complete and correct.

 

Schedule
II hereto sets forth the Schedule of Retainage evidencing in reasonable detail any and all outstanding Retainage, all of
which data is, to the best of my knowledge, true, complete and correct.

 

In the event of a conflict
between the attached calculations and any certifications relating thereto and the Credit Agreement and related definitions used
in calculating the Borrowing Base, the Credit Agreement and such related definitions shall govern and control.

 

[Signature Page to Follow]

 

     

     

    

 

Dated as of this ______
day of _____________, 20___.

 

	 	Limbach Facility Services LLC
	 	 
	 	By	 	 
	 	 	Name	 
	 	 	Title:	 

 

[Signature Page to Borrowing Base Certificate]

 

     

     

    

 

Limbach
Facility Services LLC

 

Borrowing Base Certificate
Worksheet

for Credit Agreement dated as of July 20, 2016

 

Dated
as of: __________, 20___

 

 

 

	1.	Beginning Accounts Receivable Balance (Line 4 of Previous Report)	 	$___________
	 	 	 	 
	2.	Additions to Accounts Receivable:	 	 
	 	 	 	 
	 	(a)          a. Gross Billings	$___________	 
	 	 	 	 
	 	(b)          b. Other Miscellaneous Debits	$___________	 
	 	 	 	 
	 	(c)          c. Total Additions (Line 2a plus Line 2b)	 	$___________
	 	 	 	 
	3.	Deductions from Accounts Receivable:	 	 
	 	 	 	 
	 	(a)          a. Cash and Check Receipts	$___________	 
	 	 	 	 
	 	(b)          b. Discounts Allowed	$___________	 
	 	 	 	 
	 	(c)          c. Returns and Allowances	$___________	 
	 	 	 	 
	 	(d)          d. Bad Debts	$___________	 
	 	 	 	 
	 	(e)          e. Retainage	$___________	 
	 	 	 	 
	 	(f)          f. Total Deductions	 	$___________
	 	 	 	 
	4.	Ending Accounts Receivable Balance (Line 1 plus Line 2c minus Line 3f)	 	$___________
	 	 	 	 
	5.	Ineligible Accounts Receivable from Summary Report 	 	$___________
	 	 	 	 
	6.	Net Eligible Accounts Receivable (Line 4 minus Line 5)	 	$___________
	 	 	 	 
	7.	Available Collateral:	80% of Line 6	$___________
	 	 	 	 
	8.	Deductions from Available Collateral:	 	 
	 	 	 	 
	 	(a)          a. Term Loan Reserve	$___________	 
	 	 	 	 
	 	(b)          b. Other reserves established by by the Administrative Agent (if any)	$___________	 
	 	 	 	 
	 	(c)          c. Total Deductions from Available Collateral (Line 8a plus Line 8b)	 	$___________
	 	 	 	 
	9.	Net Available Collateral (Line 7 minus Line 8c)	 	$___________
	 	 	 	 
	10.	Maximum Borrowing Limit (Less of Line 9 or Revolving Credit Commitments)	 	$___________

 

     

     

    

 

	11.	Revolving Liabilities:	 	 
	 	 	 	 
	 	(a)          a. Outstanding Revolving Loans	$___________	 
	 	 	 	 
	 	(b)          b. Outstanding Letters of Credit	$___________	 
	 	 	 	 
	 	(d)          c. Total Revolving Liabilities (Line 14a plus 14b)	 	$___________
	 	 	 	 
	12.	Availability: Excess or (Deficiency) (Line 10 minus Line 11c)	 	$___________

 

    	 	-2-	 

     

    

 

	Aging Method (Circle One):

Invoice Date/Due Date	 	Aging Method (Circle One):

Invoice Date/Due Date
	Accounts Receivable	Total	 	Accounts Receivable	Total
	1 – 30 Days	 	 	1 – 30 Days	 
	31 – 60 Days	 	 	31 – 60 Days	 
	61 – 90 Days	 	 	61 – 90 Days	 
	Over 120 Days	 	 	Over 120 Days	 
	Total	 	 	Accounts Receivable	 

 

OTHER INELIGIBLE RECEIVABLES SUMMARY REPORT

 

	A/R Over 90 Days from Invoice Date	$______________	 
	 	 	 
	Related/Employee Accounts	$______________	 
	 	 	 
	Foreign Accounts not Backed by L/C or Insurance	$______________	 
	 	 	 
	Disputed Accounts and Accounts subject to Counterclaims or Setoff	$______________	 
	 	 	 
	Impaired Accounts (as determined by the Administrative Agent in its Permitted Discretion)	$______________	 
	 	 	 
	Accounts that are not valid, legally enforceable obligations of the Account Debtor	$______________	 
	 	 	 
	Accounts where the Account Debtor is the subject of bankruptcy, insolvency or similar proceedings	$______________	 
	 	 	 
	Accounts subject to Account Debtor’s approval or subject to a repurchase obligation or return right	$______________	 
	 	 	 
	Accounts arising out of sales not made in the ordinary course of business	$______________	 
	 	 	 
	Accounts for which the Account Debtor has returned 20% or more of the Inventory which gave rise to such Account	$______________	 
	 	 	 
	Accounts for which documents executed in connection therewith violate applicable law or make the representations or warranties of the Credit Agreement untrue or misleading	$______________	 
	 	 	 
	Accounts for which a Loan Party is or may become liable to the Account Debtor for goods sold or services rendered	$______________	 
	 	 	 
	Accounts for which chattel paper or an instrument has not been endorsed and/or assigned and delivered to Administrative Agent	$______________	 
	 	 	 
	Accounts that exceed the Account Debtors credit limit (if any)	$______________	 
	 	 	 
	Accounts for which a Loan Party retains possession and/or control of the goods sold for the account of, or subject to, further and/or future direction from the Account Debtor	$______________	 

 

     

     

    

 

	Accounts located in a jurisdiction that requires the filing of a notice of business activities report or other required filing in order to enforce an Account Debtor’s claims in such jurisdiction’s courts, unless (i) such notice or other required filing has been filed or the applicable Loan Party is exempt from filing the report or (ii) the failure to make such filing may be cured retroactively by the Borrower for a nominal fee	$______________	 
	 	 	 
	Accounts arising out of a contract which forbids or makes the contract void or unenforceable if such account is assigned	$______________	 
	 	 	 
	Accounts subject to counterclaim, credit, trade or volume discount, allowance, discount, rebate or adjustment by the Account Debtor	$______________	 
	 	 	 
	Accounts in which the Administrative Agent does not have a valid and enforceable first priority perfected security interest and Bonded Accounts	$______________	 
	 	 	 
	Accounts that are otherwise determined ineligible by the Administrative Agent in its Permitted Discretion	$______________	 
	 	 	 
	Accounts owed by an Account Debtor to the extent 25% or more of the aggregate amount of
    outstanding Accounts owed by such Account Debtor with respect to a specific job or prospect are not Eligible Accounts solely
    because they are more than 90 days from the original invoice date9	$______________	 
	 	 	 
	Total Ineligible Receivables (Add lines above and enter total on Line 5 of Page 1)	 	$______________

 

 

	 	9	Prior to May 31, 2017, up to $2,000,000 of such Accounts, which are also not unpaid for more than 120 calendar days past the original invoice date may be included as Eligible Accounts if they would be otherwise eligible but for this requirement. On and after May 31, 2017, all Accounts that do not satisfy the Additional Eligibility Condition will be ineligible.

 

    	 	-2-	 

     

    

 

Schedule I

to
Borrowing Base Certificate

 

Limbach
Facility Services LLC

 

Schedule
of Accounts

for
Credit Agreement dated as of July 20, 2016

 

[See attached.]

 

     

     

    

 

Schedule II

to
Borrowing Base Certificate

 

Limbach
Facility Services LLC

 

Schedule
of Retainage

for
Credit Agreement dated as of July 20, 2016

 

[See attached.]

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