Document:

Exhibit 10.3

 

March 9, 2017

 

Matlin & Partners Acquisition Corporation

585 Weed Street

New Canaan, CT 06840

 

Re: Initial Public Offering

 

Gentlemen:

 

This letter (this “Letter Agreement”)
is being delivered to you in accordance with the Underwriting Agreement (the “Underwriting Agreement”)
to be entered into by and among Matlin & Partners Acquisition Corporation, a Delaware corporation (the “Company”),
and Cantor Fitzgerald & Co., as representative (the “Representative”) of the several underwriters
(each, an “Underwriter” and collectively, the “Underwriters”), relating to
an underwritten initial public offering (the “Public Offering”), of 34,500,000 of the Company’s
units (including up to 4,500,000 units that may be purchased to cover over-allotments, if any) (the “Units”),
each comprised of one share of the Company’s Class A common stock, par value $0.0001 per share (the “Common
Stock”), and one warrant. Each Warrant (each, a “Warrant”) entitles the holder thereof
to purchase one-half of one share of Common Stock at a price of $5.75 per half share, subject to adjustment. The Units shall be
sold in the Public Offering pursuant to a registration statement on Form S-1 and prospectus (the “Prospectus”)
filed by the Company with the Securities and Exchange Commission (the “Commission”) and the Company shall
apply to have the Units listed on the Nasdaq Capital Market. Certain capitalized terms used herein are defined in paragraph 11
hereof.

 

In order to induce the Company and the Underwriters
to enter into the Underwriting Agreement and to proceed with the Public Offering and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Matlin & Partners Acquisition Sponsor LLC (the “Sponsor”)
and the undersigned individuals, each of whom is a member of the Company’s board of directors and/or management team (each,
an “Insider” and collectively, the “Insiders”), hereby agrees with the Company
as follows:

 

1.  The Sponsor and each Insider agrees
that if the Company seeks stockholder approval of a proposed Business Combination, then in connection with such proposed Business
Combination, it or he shall (i) vote any shares of Capital Stock owned by it or him in favor of any proposed Business Combination
and (ii) not redeem any shares of Common Stock owned by it or him in connection with such stockholder approval.

 

2.  The Sponsor and each Insider hereby
agrees that in the event that the Company fails to consummate a Business Combination within 24 months from the closing of the Public
Offering, or such later period approved by the Company’s stockholders in accordance with the Company’s amended and
restated certificate of incorporation, the Sponsor and each Insider shall take all reasonable steps to cause the Company to (i) cease
all operations except for the purpose of winding up, (ii) as promptly as reasonably possible but not more than 10 business
days thereafter, subject to lawfully available funds therefor, redeem 100% of the Common Stock sold as part of the Units in the
Public Offering (the “Offering Shares”), at a per-share price, payable in cash, equal to the aggregate
amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not previously
released to the Company to pay its franchise and income taxes (less up to $100,000 of interest to pay dissolution expenses), divided
by the number of then outstanding Offering Shares, which redemption will completely extinguish all Public Stockholders’ rights
as stockholders (including the right to receive further liquidation distributions, if any), subject to applicable law, and (iii) as
promptly as reasonably possible following such redemption, subject to the approval of the Company’s remaining stockholders
and the Company’s board of directors, dissolve and liquidate, subject in each case to the Company’s obligations under
Delaware law to provide for claims of creditors and other requirements of applicable law. The Sponsor and each Insider agrees not
to propose any amendment to the Company’s amended and restated certificate of incorporation that would affect the substance
or timing of the Company’s obligation to redeem 100% of the Offering Shares if the Company does not complete a Business Combination
within 24 months from the closing of the Public Offering, unless the Company provides its public stockholders with the opportunity
to redeem their shares of Common Stock upon approval of any such amendment at a per-share price, payable in cash, equal to the
aggregate amount then on deposit in the Trust Account, including interest earned on the funds held in the Trust Account and not
previously released to the Company to pay its franchise and income taxes, divided by the number of then outstanding Offering Shares.

 

     

     

    

 

The Sponsor and each Insider acknowledges
that it or he has no right, title, interest or claim of any kind in or to any monies held in the Trust Account or any other asset
of the Company as a result of any liquidation of the Company with respect to the Founder Shares held by it. The Sponsor and each
Insider hereby further waives, with respect to any shares of Common Stock held by it or him, if any, any redemption rights it or
he may have in connection with the consummation of a Business Combination, including, without limitation, any such rights available
in the context of a stockholder vote to approve such Business Combination or in the context of a tender offer made by the Company
to purchase shares of Common Stock (although the Sponsor, the Insiders and their respective affiliates shall be entitled to redemption
and liquidation rights with respect to any Offering Shares it or they hold if the Company fails to consummate a Business Combination
within 24 months from the date of the closing of the Public Offering).

 

3.  Notwithstanding the provisions
set forth in paragraphs 7(a) and (b) below, during the period commencing on the effective date of the Underwriting Agreement and
ending 180 days after such date, the Sponsor and each Insider shall not, without the prior written consent of the Representative,
(i) sell, offer to sell, contract or agree to sell, hypothecate, pledge, grant any option to purchase or otherwise dispose
of or agree to dispose of, directly or indirectly, or establish or increase a put equivalent position or liquidate or decrease
a call equivalent position within the meaning of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the Commission promulgated thereunder, with respect to any Units, shares of Common Stock, Founder Shares, Warrants
or any securities convertible into, or exercisable, or exchangeable for, shares of Common Stock owned by it or him, (ii) enter
into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership
of any Units, shares of Common Stock, Founder Shares, Warrants or any securities convertible into, or exercisable, or exchangeable
for, shares of Common Stock owned by it or him, whether any such transaction is to be settled by delivery of such securities, in
cash or otherwise, or (iii) publicly announce any intention to effect any transaction, including the filing of a registration
statement, specified in clause (i) or (ii). Each of the Insiders and the Sponsor acknowledges and agrees that, prior to the
effective date of any release or waiver, of the restrictions set forth in this paragraph 3 or paragraph 7 below, the Company shall
announce the impending release or waiver by press release through a major news service at least two business days before the effective
date of the release or waiver. Any release or waiver granted shall only be effective two business days after the publication date
of such press release. The provisions of this paragraph will not apply if the release or waiver is effected solely to permit a
transfer not for consideration and the transferee has agreed in writing to be bound by the same terms described in this Letter
Agreement to the extent and for the duration that such terms remain in effect at the time of the transfer.

 

4.  In the event of the liquidation
of the Trust Account, the Sponsor (which for purposes of clarification shall not extend to any other shareholders, members or managers
of the Sponsor), agrees to indemnify and hold harmless the Company against any and all loss, liability, claim, damage and expense
whatsoever (including, but not limited to, any and all legal or other expenses reasonably incurred in investigating, preparing
or defending against any litigation, whether pending or threatened, or any claim whatsoever) to which the Company may become subject
as a result of any claim by (i) any third party for services rendered or products sold to the Company or (ii) a prospective
target business with which the Company has entered into an acquisition agreement (a “Target”); provided, however,
that such indemnification of the Company by the Sponsor shall apply only to the extent necessary to ensure that such claims by
a third party for services rendered or products sold to the Company or a Target do not reduce the amount of funds in the Trust
Account to below (i) $10.00 per share of the Offering Shares or (ii) such lesser amount per share of the Offering Shares
held in the Trust Account due to reductions in the value of the trust assets as of the date of the liquidation of the Trust Account,
in each case, net of the amount of interest earned on the property in the Trust Account which may be withdrawn to pay taxes, except
as to any claims by a third party (including a Target) who executed a waiver of any and all rights to seek access to the Trust
Account and except as to any claims under the Company’s indemnity of the Underwriters against certain liabilities, including
liabilities under the Securities Act of 1933, as amended. In the event that any such executed waiver is deemed to be unenforceable
against such third party, the Sponsor shall not be responsible to the extent of any liability for such third party claims. The
Sponsor shall have the right to defend against any such claim with counsel of its choice reasonably satisfactory to the Company
if, within 15 days following written receipt of notice of the claim to the Sponsor, the Sponsor notifies the Company in writing
that it shall undertake such defense.

 

     

     

    

 

5.  To the extent that the Underwriters
do not exercise their over-allotment option to purchase up to an additional 4,500,000 Units within 45 days from the date of the
Prospectus (and as further described in the Prospectus), the Sponsor agrees to forfeit, at no cost, a number of Founder Shares
in the aggregate equal to 1,125,000 multiplied by a fraction, (i) the numerator of which is 4,500,000 minus the number of
Units purchased by the Underwriters upon the exercise of their over-allotment option, and (ii) the denominator of which is
4,500,000. The forfeiture will be adjusted to the extent that the over-allotment option is not exercised in full by the Underwriters
so that the Sponsor will own an aggregate of 20.0% of the Company’s issued and outstanding shares of Capital Stock after
the Public Offering. The Sponsor further agrees that to the extent that the size of the Public Offering is increased or decreased,
the Company will effect a stock dividend or share repurchase or share contribution back to capital, as applicable, immediately
prior to the consummation of the Public Offering in such amount as to maintain the ownership of the Sponsor prior to the Public
Offering at 20.0% of its issued and outstanding shares of Capital Stock upon the consummation of the Public Offering. In connection
with such increase or decrease in the size of the Public Offering, then (A) the references to 4,500,000 in the numerator and denominator
of the formula in the first sentence of this paragraph shall be changed to a number equal to 15% of the number of shares included
in the Units issued in the Public Offering and (B) the reference to 1,125,000 in the formula set forth in the immediately preceding
sentence shall be adjusted to such number of Founder Shares that the Sponsor would have to return to the Company in order to hold
(with all of the pre-offering stockholders) an aggregate of 20.0% of the Company’s issued and outstanding shares of Capital
Stock after the Public Offering.

 

6.  (a)  Each Insider hereby agrees
not to participate in the formation of, or become an officer or director of, any other any other special purpose acquisition company
with a class of securities registered under the Securities Exchange Act of 1934, as amended, until the Company has entered into
a definitive agreement regarding an initial Business Combination or unless the Company has failed to complete a Business Combination
within 24 months after the closing of the Public Offering.

 

(b)  The Sponsor and each Insider
hereby agrees and acknowledges that: (i) the Underwriters and the Company would be irreparably injured in the event of a breach
by such Sponsor or an Insider of its or his obligations under paragraphs 1, 2, 3, 4, 5, 6(a), 7(a), 7(b), and 9, as applicable,
of this Letter Agreement (ii) monetary damages may not be an adequate remedy for such breach and (iii) the non-breaching
party shall be entitled to injunctive relief, in addition to any other remedy that such party may have in law or in equity, in
the event of such breach.

 

7.  (a)  The Sponsor and each
Insider agrees that it or he shall not Transfer any Founder Shares (or shares of Common Stock issuable upon conversion thereof)
until the earlier of (A) one year after the completion of the Company’s initial Business Combination or (B) subsequent
to the Business Combination, (x) if the last sale price of the Common Stock equals or exceeds $12.00 per share (as adjusted
for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within any 30-trading
day period commencing at least 150 days after the Company’s initial Business Combination or (y) the date on which the
Company completes a liquidation, merger, capital stock exchange, reorganization or other similar transaction that results in all
of the Company’s stockholders having the right to exchange their shares of Common Stock for cash, securities or other property
(the “Founder Shares Lock-up Period”).

 

(b)  The Sponsor and each Insider
agrees that it or he shall not Transfer any Private Placement Warrants (or shares of Common Stock issued or issuable upon the conversion
of the Private Placement Warrants), until 30 days after the completion of a Business Combination (the “Private Placement
Warrants Lock-up Period”, together with the Founder Shares Lock-up Period, the “Lock-up Periods”).

 

(c)  Notwithstanding the provisions
set forth in paragraphs 7(a) and (b), Transfers of the Founder Shares, Private Placement Warrants and shares of Common Stock
issued or issuable upon the exercise or conversion of the Private Placement Warrants or the Founder Shares and that are held by
the Sponsor, any Insider or any of their permitted transferees (that have complied with this paragraph 7(c)), are permitted (a) to
the Company’s officers or directors, any affiliates or family members of any of the Company’s officers or directors,
any members of the Sponsor, or any affiliates of the Sponsor or members of the Sponsor; (b) in the case of an individual,
transfers by gift to a member of the individual’s immediate family, to a trust, the beneficiary of which is a member of the
individual’s immediate family or an affiliate of such person, or to a charitable organization; (c) in the case of an
individual, transfers by virtue of laws of descent and distribution upon death of the individual; (d) in the case of an individual,
transfers pursuant to a qualified domestic relations order; (e) transfers by private sales or transfers made in connection
with the consummation of a Business Combination at prices no greater than the price at which the securities were originally purchased;
(f) transfers in the event of the Company’s liquidation prior to the completion of an initial Business Combination;
(g) transfers by virtue of the laws of the State of Delaware or the Sponsor’s limited liability company agreement upon
dissolution of the Sponsor; and (h) in the event of the Company’s liquidation, merger, capital stock exchange, reorganization
or other similar transaction which results in all of the Company’s stockholders having the right to exchange their shares
of Common Stock for cash, securities or other property subsequent to the completion of the Company’s initial Business Combination;
provided, however, that in the case of clauses (a) through (e), these permitted transferees must enter into a written agreement
agreeing to be bound by the restrictions herein.

 

     

     

    

 

8.  The Sponsor and each Insider represents
and warrants that it or he has never been suspended or expelled from membership in any securities or commodities exchange or association
or had a securities or commodities license or registration denied, suspended or revoked. Each Insider’s biographical information
furnished to the Company (including any such information included in the Prospectus) is true and accurate in all respects and does
not omit any material information with respect to the Insider’s background. Each Insider’s questionnaire furnished
to the Company is true and accurate in all respects. Each Insider represents and warrants that: it or he is not subject to or a
respondent in any legal action for, any injunction, cease-and-desist order or order or stipulation to desist or refrain from any
act or practice relating to the offering of securities in any jurisdiction; it or he has never been convicted of, or pleaded guilty
to, any crime (i) involving fraud, (ii) relating to any financial transaction or handling of funds of another person,
or (iii) pertaining to any dealings in any securities and it or he is not currently a defendant in any such criminal proceeding.

 

9.  (a) Except as disclosed in the
Prospectus, neither the Sponsor nor any Insider nor any affiliate of the Sponsor or any Insider, nor any director or officer of
the Company, shall receive from the Company any finder’s fee, reimbursement, consulting fee, monies in respect of any repayment
of a loan or other compensation prior to, or in connection with any services rendered in order to effectuate the consummation of
the Company’s initial Business Combination (regardless of the type of transaction that it is), other than the following,
none of which will be made from the proceeds held in the Trust Account prior to the completion of the initial Business Combination:
repayment of pre-Public Offering loans or advances; reimbursement for any reasonable out-of-pocket expenses related to identifying,
investigating and consummating an initial Business Combination, and repayment of loans, if any, and on such terms as to be determined
by the Company from time to time, made by the Sponsor or any of the Company’s officers or directors to finance transaction
costs in connection with an intended initial Business Combination, provided, that, if the Company does not consummate an initial
Business Combination, a portion of the working capital held outside the Trust Account may be used by the Company to repay such
loaned amounts so long as no proceeds from the Trust Account are used for such repayment. Up to $1,500,000 of such loans may be
convertible into warrants at a price of $0.50 per warrant at the option of the lender. Such warrants would be identical to the
Private Placement Warrants, including as to exercise price, exercisability and exercise period.

 

(b) Commencing on the effective date of
the Prospectus for the Offering and continuing until the earlier of (i) the consummation by the Company of a Business Combination
or (ii) the Company’s liquidation as described in the Prospectus, MatlinPatterson Global Advisers LLC shall make available
to the Company, at no charge, certain office space and administrative and support services as may be required by the Company from
time to time, situated at 520 Madison Avenue, New York, NY 10022 (or any successor locations).

 

10.  The Sponsor and each Insider has
full right and power, without violating any agreement to which it is bound (including, without limitation, any non-competition
or non-solicitation agreement with any employer or former employer), to enter into this Letter Agreement and, as applicable, to
serve as a director on the board of directors of the Company and hereby consents to being named in the Prospectus as a director
of the Company.

 

11.  As used herein, (i) “Business
Combination” shall mean a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar
business combination, involving the Company and one or more businesses; (ii) “Capital Stock” shall
mean, collectively, the Common Stock and the Founder Shares; (iii) “Founder Shares” shall mean (a) the
8,625,000 shares of the Company’s Class F common stock, par value $0.0001 per share, initially issued to the Sponsor (up
to 1,125,000 Shares of which are subject to complete or partial forfeiture by the Sponsor if the over-allotment option is not exercised
by the Underwriters) for an aggregate purchase price of $25,000, or $0.002 per share, prior to the consummation of the Public Offering;
(iv) “Initial Stockholders” shall mean the Sponsor and any Insider that holds Founder Shares; (v) “Private
Placement Warrants” shall mean the Warrants to purchase up to 7,750,000 shares of Common Stock of the Company that
the Sponsor and the Representative have agreed to purchase for an aggregate purchase price of $7,750,000 in the aggregate, or $0.50
per Warrant, in a private placement that shall occur simultaneously with the consummation of the Public Offering; (vi) “Public
Stockholders” shall mean the holders of securities issued in the Public Offering; (vii) “Trust Account”
shall mean the trust fund into which a portion of the net proceeds of the Public Offering shall be deposited; and (viii) “Transfer”
shall mean the (a) sale of, offer to sell, contract or agreement to sell, hypothecate, pledge, grant of any option to purchase
or otherwise dispose of or agreement to dispose of, directly or indirectly, or establishment or increase of a put equivalent position
or liquidation with respect to or decrease of a call equivalent position within the meaning of Section 16 of the Securities
Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder with respect to,
any security, (b) entry into any swap or other arrangement that transfers to another, in whole or in part, any of the economic
consequences of ownership of any security, whether any such transaction is to be settled by delivery of such securities, in cash
or otherwise, or (c) public announcement of any intention to effect any transaction specified in clause (a) or (b).

 

     

     

    

 

12.  This Letter Agreement constitutes
the entire agreement and understanding of the parties hereto in respect of the subject matter hereof and supersedes all prior understandings,
agreements, or representations by or among the parties hereto, written or oral, to the extent they relate in any way to the subject
matter hereof or the transactions contemplated hereby. This Letter Agreement may not be changed, amended, modified or waived (other
than to correct a typographical error) as to any particular provision, except by a written instrument executed by all parties hereto.

 

13.  No party hereto may assign either
this Letter Agreement or any of its rights, interests, or obligations hereunder without the prior written consent of the other
party. Any purported assignment in violation of this paragraph shall be void and ineffectual and shall not operate to transfer
or assign any interest or title to the purported assignee. This Letter Agreement shall be binding on the Sponsor and each Insider
and their respective successors, heirs and assigns and permitted transferees.

 

14.  This Letter Agreement shall be
governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflicts
of law principles that would result in the application of the substantive laws of another jurisdiction. The parties hereto (i) all
agree that any action, proceeding, claim or dispute arising out of, or relating in any way to, this Letter Agreement shall be brought
and enforced in the courts of New York City, in the State of New York, and irrevocably submit to such jurisdiction and venue, which
jurisdiction and venue shall be exclusive and (ii) waive any objection to such exclusive jurisdiction and venue or that such
courts represent an inconvenient forum.

 

15.  Any notice, consent or request
to be given in connection with any of the terms or provisions of this Letter Agreement shall be in writing and shall be sent by
express mail or similar private courier service, by certified mail (return receipt requested), by hand delivery or facsimile transmission.

 

16.  This Letter Agreement shall terminate
on the earlier of (i) the expiration of the Lock-up Periods or (ii) the liquidation of the Company; provided, however,
that this Letter Agreement shall earlier terminate in the event that the Public Offering is not consummated and closed by June
30, 2017; provided further that paragraph 4 of this Letter Agreement shall survive such liquidation.

 

[Signature Page Follows]

 

     

     

    

 

	 	Sincerely,
	 	 
	 	MATLIN & PARTNERS ACQUISITION SPONSOR LLC

 

	   	By:	/s/ David J. Matlin
	 	 	Name:	 David J. Matlin
	 	 	Title:	Director

 

	 	 
	 	By:	/s/ David J. Matlin
	 	 	David J. Matlin
	 	 	 
	 	By:	/s/ Peter H. Schoels
	 	 	Peter H. Schoels
	 	 	 
	 	By:	/s/ Gregory Ethridge
	 	 	Gregory Ethridge
	 	 	 
	 	By:	/s/ Rui Gao
	 	 	Rui Gao
	 	 	 
	 	By:	/s/ Kenneth L. Campbell
	 	 	Kenneth L. Campbell
	 	 	 
	 	By:	/s/ David L. Treadwell
	 	 	David L. Treadwell
	 	 	 
	 	By:	/s/ David L. Treadwell
	 	 	Daniel W. Dienst
	 	 	 
	 	By:	
        /s/ Robert H. Weiss

        Robert H. Weiss

	 	 	 
	 	By:	/s Nathan Brawn
	 	 	Nathan Brawn
	 	 	 

Solely for purposes of the last paragraph of Section 9(b):

 

MATLINPATTERSON GLOBAL ADVISERS, LLC

 

	By:	/s/ David J. Matlin	 
	 	Name: David J. Matlin
	 	Title: Chief Executive Officer

 

 

[Signature Page to Letter Agreement]

 

     

     

    

 

	

Acknowledged and Agreed:  

 

MATLIN & PARTNERS ACQUISITION CORPORATION

	 	 	 
	By:	/s/ David J. Matlin	 
	 	
        Name: David J. Matlin

        Title:   Chief Executive Officer
	 

 

 

[Signature Page to Letter
Agreement]Exhibit 10.25

 

SECOND AMENDMENT TO LIMITED WAIVER AND SEVENTH AMENDMENT TO CREDIT AGREEMENT AND AMENDMENT TO OTHER LOAN DOCUMENTS

 

THIS SECOND AMENDMENT TO LIMITED WAIVER AND SEVENTH AMENDMENT TO CREDIT AGREEMENT AND AMENDMENT TO OTHER LOAN DOCUMENTS (this “Amendment”), dated as of  March 25, 2016, is among GLOBAL POWER EQUIPMENT GROUP INC., a Delaware corporation (the “Borrower”), WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent for the Lenders (the “Administrative Agent”), the LENDERS (as defined in the Credit Agreement defined below) signing this Amendment, and WELLS FARGO BANK, NATIONAL ASSOCIATION, in its capacity as Swingline Lender and in its capacity as Issuing Lender.

 

RECITALS

 

A.            The Borrower, the Administrative Agent, the Lenders, the Swingline Lender and the Issuing Lender are parties to that certain Credit Agreement, dated as of February 21, 2012, as amended by that certain First Amendment to Credit Agreement and First Amendment to Security Agreement, dated as of April 25, 2012, that certain Second Amendment to Credit Agreement, dated as of July 19, 2012, that certain Third Amendment and Limited Waiver to Credit Agreement and Second Amendment to Security Agreement, dated as of March 4, 2013, but effective as of December 7, 2012, that certain Lender Joinder Agreement, effective as of December 17, 2013, that certain Fourth Amendment and Limited Waiver to Credit Agreement, dated as of December 22, 2014, that certain Fifth Amendment and Limited Waiver to Credit Agreement, dated as of May 28, 2015, that certain Limited Waiver and Sixth Amendment to Credit Agreement, dated as of June 30, 2015, that certain Limited Waiver and Seventh Amendment to Credit Agreement and Amendment to Other Loan Documents, dated as of August 31, 2015 and that certain First Amendment to Limited Waiver and Seventh Amendment to Credit Agreement and Amendment to Other Loan Documents, dated as of December 11, 2015 (as amended, the “Credit Agreement”).

 

B.            Prior to the execution and delivery of the Limited Waiver and Sixth Amendment to Credit Agreement, dated as of June 30, 2015 (the “Limited Waiver and Sixth Amendment to Credit Agreement”), the Borrower informed the Administrative Agent, the Lenders, the Swingline Lender and the Issuing Lender that (i) the previously delivered audited financial statements for the Fiscal Year ending December 31, 2014 and accompanying Officer’s Compliance Certificate were incorrect, (ii) the representations set forth in Section 6.26 of the Credit Agreement regarding such financial statements and accompanying Officer’s Compliance Certificate were incorrect each time such representations were made and (iii) as a result of such incorrect financial statements, the Borrower had failed to keep proper books, records and accounts in accordance with Section 7.7 of the Credit Agreement.  The failure to keep proper books, records and accounts and the delivery of incorrect financial statements for the Fiscal Year ending December 31, 2014, together with an inaccurate Officer’s Compliance Certificate constituted a breach of Sections 6.26, 7.1(a), 7.2(a) and 7.7 of the Credit Agreement, and constituted Events of Default under Sections 9.1(c), (d) and (e) of the Credit Agreement (collectively, the “Original Known Existing Events of Default”).

 

C.            Pursuant to the Limited Waiver and Sixth Amendment to Credit Agreement, the Administrative Agent, the Lenders, the Swingline Lender and the Issuing Lender agreed, among other things, to (i) temporarily waive the Original Known Existing Events of Default until August 31, 2015 subject to the terms and conditions of the Limited Waiver and Sixth Amendment to Credit Agreement and (ii) extend the period of time for the delivery of the restated audited financial statements for the Fiscal Year ending December 31, 2014 and related corrected Officer’s Compliance Certificate and for delivery of the quarterly financial statements for the  Borrower’s fiscal quarters ended on or about March 29, 2015 and June 28, 2015 and accompanying Officer’s Compliance Certificates.

 

1

 

D.            Pursuant to the Limited Waiver and Seventh Amendment to Credit Agreement and Amendment to Other Loan Documents, dated as of August 31, 2015 (the “Original Limited Waiver and Seventh Amendment to Credit Agreement”), the Administrative Agent, the Lenders, the Swingline Lender and the Issuing Lender agreed to (i) further temporarily waive the Original Known Existing Events of Default until February 15, 2016 subject to the terms and conditions of the Limited Waiver and Seventh Amendment to Credit Agreement, (ii) further extend the period of time for  delivery of the restated audited financial statements for the Fiscal Year ending December 31, 2014 and related corrected Officer’s Compliance Certificate and for delivery of the quarterly financial statements for the fiscal quarters ended on or about March 29, 2015 and June 28, 2015 and related Officer’s Compliance Certificate, and (iii) amend certain provisions of the Credit Agreement and the other Loan Documents.

 

E.            Following the occurrence of various Waiver Termination Events under the Original Limited Waiver and Seventh Amendment to Credit Agreement, the Administrative Agent, the Lenders, the Swingline Lender and the Issuing Lender agreed, pursuant to the First Amendment to Limited Waiver and Seventh Amendment to Credit Agreement and Amendment to Other Loan Documents dated as of December 11, 2015 (the “First Amendment to Limited Waiver and Seventh Amendment to Credit Agreement”), to (i) reset and extend until February 15, 2016 the temporary limited waiver under the Limited Waiver and Seventh Amendment to Credit Agreement by temporarily waiving the Waiver Termination Events identified in various letters sent by the Administrative Agent to the Borrower, the Original Known Existing Events of Default, the Additional Known Existing Events of Default and the Anticipated Events of Default pursuant to the terms and conditions of the First Amendment to Limited Waiver and Seventh Amendment to Credit Agreement, and (ii) amend certain of the provisions of the Credit Agreement and the Original Limited Waiver and Seventh Amendment to Credit Agreement (the Original Limited Waiver and Seventh Amendment to Credit Agreement as amended by the First Amendment to Limited Waiver and Seventh Amendment to Credit Agreement, the “Limited Waiver and Seventh Amendment to Credit Agreement”).

 

F.             On January 31, 2016, the Borrower failed to deliver to the Administrative Agent the restated consolidated and consolidating balance sheets of the Borrower and its Subsidiaries as of the close of the Fiscal Years ended December 31, 2012, December 31, 2013 and December 31, 2014 and as of the close of the fiscal quarters ended on or about March 29, 2015, June 28, 2015 and September 27, 2015, and the consolidated and consolidating statements of income, retained earnings and cash flows for such periods, in each case in reasonable detail and in the forms and certified as required by and as more fully set forth in Sections 4(e)(y) and 4(e)(z) of the Limited Waiver and Seventh Amendment to Credit Agreement. Pursuant to a letter dated February 3, 2016 from the Administrative Agent to the Borrower (the “February 2016 Notice Letter”), the Administrative Agent (i) notified the Borrower of the Waiver Termination Events arising under the Limited Waiver and Seventh Amendment to Credit Agreement as a result of the Borrower’s failure to deliver the financial statements as required by Sections 4(e)(y) and 4(e)(z) of the Limited Waiver and Seventh Amendment to Credit Agreement, (ii) notified the Borrower that the temporary waiver of the Original Known Existing Events of Default and the Anticipated Events of Default (as defined in the Limited Waiver and Seventh Amendment to Credit Agreement) under the Limited Waiver and Seventh Amendment to Credit Agreement had terminated, and (iii) reserved all rights and remedies available under the Loan Documents and otherwise.  On February 15, 2016, the Stated Waiver Termination Date occurred which also constitutes a Waiver Termination Event.

 

G.            The Borrower has requested that the Administrative Agent, the Required Lenders, the Swingline Lender and the Issuing Lender agree to (i) reset and extend the temporary limited waiver under the Limited Waiver and Seventh Amendment to Credit Agreement by temporarily waiving the Waiver Termination Events identified in the February 2016 Notice Letter and in Recital F above, including the Events of Default resulting from the events that caused such Waiver Termination Events, and by temporarily waiving the Original Known Existing Events of Default, the Additional Known Existing

 

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Events of Default and the Anticipated Events of Default pursuant to the terms and conditions of the Limited Waiver and Seventh Amendment to Credit Agreement, as amended by this Amendment, and (ii) amend certain of the provisions of the Credit Agreement and the Limited Waiver and Seventh Amendment to Credit Agreement pursuant to the terms and conditions of this Amendment.

 

H.            The Administrative Agent, the Required Lenders, the Swingline Lender and the Issuing Lender are willing to agree to such requests of the Borrower subject to the terms and conditions of this Amendment.

 

NOW, THEREFORE, in consideration of the covenants, conditions and agreements hereafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are all hereby acknowledged, the Borrower, the Administrative Agent, the Required Lenders, the Swingline Lender and the Issuing Lender hereby agree as follows:

 

1.             DEFINITIONS.  All capitalized terms used in this Amendment (including in the Recitals to this Amendment) which are not expressly defined in this Amendment shall have the meanings given to them in the Credit Agreement or the Limited Waiver and Seventh Amendment to Credit Agreement, as applicable.

 

2.             AMENDMENTS TO LIMITED WAIVER AND SEVENTH AMENDMENT TO CREDIT AGREEMENT.

 

(a)           Section 1 of the Limited Waiver and Seventh Amendment to Credit Agreement is hereby amended by amending or adding, as applicable, the following definitions to read as follows:

 

“Known Existing Waiver Termination Events” means the existing Waiver Termination Events identified in (a) Recitals E, F, G and H of the First Amendment to Limited Waiver and Seventh Amendment to Credit Agreement and (b) Recital F of the Second Amendment to Limited Waiver and Seventh Amendment to Credit Agreement.

 

“Second Amendment to Limited Waiver and Seventh Amendment to Credit Agreement” means that certain Second Amendment to Limited Waiver and Seventh Amendment to Credit Agreement and Amendment to Other Loan Documents dated as of March 25, 2016, by and among the Borrower, the Administrative Agent, the Required Lenders, the Swingline Lender and the Issuing Lender, and acknowledged and agreed to by each of the Subsidiary Guarantors.

 

“Second Amendment to Limited Waiver Agreement Effective Date” means the date on which all of the conditions to the effectiveness of the Second Amendment to Limited Waiver and Seventh Amendment to Credit Agreement set forth in Section 7 of the Second Amendment to Limited Waiver and Seventh Amendment to Credit Agreement have been satisfied to the satisfaction of the Administrative Agent.

 

“Stated Waiver Termination Date” means May 15, 2016.

 

(b)           Section 3(a)(A) of the Limited Waiver and Seventh Amendment to Credit Agreement is amended and restated in its entirety to read as follows:

 

(A) the Borrower will not be permitted to have more than the Revolving Credit Loan Cap Amount of Revolving Credit Loans outstanding at any time during the Limited Waiver Period (and the Credit Parties agree that the Lenders will have no obligation to make available Revolving Credit Loans in excess of the Revolving Credit Loan Cap Amount at any time); and

 

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(c)           Section 3(a)(B) of the Limited Waiver and Seventh Amendment to Credit Agreement is amended by replacing the amount “$15,000,000” contained therein in each instance in which it appears with the phrase “$12,000,000 or, if the Nuclear Services Letter of Credit is issued on or prior to April 20, 2016, $14,000,000”.

 

(d)           Section 4 of the Limited Waiver and Seventh Amendment to Credit Agreement is amended by adding the following subsections (n) and (o) after existing Section 4(m):

 

(n)           Application of Cash Collateral and Other Collections and Proceeds of Collateral to the Secured Obligations.  From and after the Second Amendment to Limited Waiver Agreement Effective Date,  the Borrower and the Credit Parties shall take such actions as the Administrative Agent shall request and shall open such accounts with the Administrative Agent as the Administrative Agent shall request to assure that by no later than May 15, 2016 all cash Collateral and all other collections and proceeds of Collateral received by the Borrower or any other Credit Party may, at the Administrative Agent’s election, be applied directly to repay to the Secured Obligations and to otherwise permit the Administrative Agent to implement full dominion over all such cash Collateral and all other collections and proceeds of Collateral received by the Borrower or any other Credit Party.  Nothing in this subsection (m) shall be construed to limit or restrict in any way any of the rights or remedies of the Administrative Agent as secured party under any Deposit Account Control Agreement or any other Loan Document related to the Borrower or any other Credit Party.

 

(o)           Delivery of Revised 2016 Projections and Plan for Repayment of the Obligations; Late Delivery Fee.  On or before end of the day on April 15, 2016, the Borrower shall provide to the Administrative Agent and the Lenders the revised business plan and operating capital budget of the Borrower and its Subsidiaries for the Fiscal Year commencing January 1, 2016 and ending December 31, 2016, together with a detailed plan for repayment in full of the Obligations including a description of specific events and steps needed to raise funds to do so, the amounts of the Obligations to be repaid from such events and steps and the timing for such events, steps and repayments, all in form and detail reasonably acceptable the Administrative Agent and the Lenders. In the event that Borrower shall fail to deliver the required business plan, operating capital budget and detailed plan for repayment in full of the Obligations on or before the end of the day on April 15, 2016, in addition to the occurrence of a Waiver Termination Event as a result of any such failure, the Borrower shall pay to the Administrative Agent, for the pro rata account of the Lenders (based on the Revolving Credit Commitments of the Lenders) a non-refundable late delivery fee (the “Late Delivery Fee”) of $50,000 for each period of seven (7) days that Borrower has failed to comply with the foregoing delivery requirement (e.g., solely to the extent that the required deliverables are not received by the Administrative Agent and the Lenders before the end of the day on April 22, 2016, the Late Delivery Fee for such seven-day period shall be $50,000, if the required deliverables are not received by the Administrative Agent and the Lenders before the end of the day on April 29, 2016, there shall be an additional Late Delivery Fee of $50,000, etc.).  At the end of any such seven-day period, the $50,000 portion of the Late Delivery Fee related to such seven-day period shall be fully due and payable without any notice or demand for payment by the Administrative Agent or any of the Lenders.  The Borrower acknowledges that the timely delivery of the required revised business plan, operating capital budget and detailed plan for repayment in full of the Obligations is of utmost importance to the Administrative Agent and the Lenders in connection with their assessment of an approach and next steps to be taken in connection with the Borrower and the Credit Facility, and the Late Delivery Fee is fair and appropriate compensation to the Administrative Agent and the Lenders for additional risk which will be incurred as a result of a failure of the Borrower to timely deliver such required items.

 

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(e)           Exhibit A attached to the Limited Waiver and Seventh Amendment to Credit Agreement is amended and restated in the form attached as Exhibit A attached to this Amendment.

 

3.             ACKNOWLEDGMENTS OF THE BORROWER.  The Borrower hereby acknowledges and agrees as follows:

 

(a)           Recitals.  The Recitals to this Amendment are true and correct.

 

(b)           Loan Documents.  The Credit Agreement and the Limited Waiver and Seventh Amendment to Credit Agreement, each as amended by this Amendment, and each of the other Loan Documents are the legal, valid and binding agreements of each Credit Party which is a party thereto, enforceable against such Credit Party in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar state or federal debtor relief laws from time to time in effect which affect the enforcement of creditor’s rights in general and the availability of equitable remedies, regardless of whether considered in a proceeding equity or at law.

 

(c)           Obligations.  As of the Second Amendment to Limited Waiver Agreement Effective Date, the Obligations of the Credit Parties under the Loan Documents are not subject to any restriction, setoff, deduction, claim, counterclaim or defense of any kind or character whatsoever.

 

(d)           Outstanding Principal in respect of the Revolving Credit Loans and the L/C Obligations.  The outstanding principal balance of the Revolving Credit Loans and the L/C Obligations as of March 24, 2016 are as set forth on Schedule A attached to this Amendment and made a part of this Amendment.

 

4.             AMENDMENTS TO CREDIT AGREEMENT.

 

(a)           From and after the Second Amendment to Limited Waiver Agreement Effective Date, Section 1.1 of the Credit Agreement is amended by adding the following definitions in the appropriate alphabetical order:

 

“Net Cash Proceeds” means, as applicable, (a) with respect to any Asset Disposition, the gross proceeds received by any Credit Party or any of its Subsidiaries therefrom (including any cash, Cash Equivalents, deferred payment pursuant to, or by monetization of, a note receivable or otherwise, as and when received) less the sum of (i) all income taxes and other taxes assessed by, or reasonably estimated to be payable to, a Governmental Authority as a result of such transaction (provided that if such estimated taxes exceed the amount of actual taxes required to be paid in cash in respect of such Asset Disposition, the amount of such excess shall constitute Net Cash Proceeds), (ii) all reasonable and customary out-of-pocket fees and expenses incurred in connection with such transaction or event and (iii) the principal amount of, premium, if any, and interest on any Indebtedness secured by a Lien which is prior to any Lien of the Administrative Agent or the Lenders on the asset (or a portion thereof) disposed of, which Indebtedness is required to be repaid in connection with such transaction or event, and (b) with respect to any Equity Issuance or Debt Issuance, the gross cash proceeds received by any Credit Party or any of its Subsidiaries therefrom less all reasonable and customary out-of-pocket legal, underwriting and other fees and expenses incurred in connection therewith.

 

“Revolving Credit Loan Cap Amount” means, as of any date of determination, $70,000,000 minus the aggregate amount of all mandatory repayments required to be made by the Borrower under Section 2.4(b)(vi), Section 2.4(b)(vii), Section 2.4(b)(viii), Section 2.4(b)(ix) or

 

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Section  2.4(b)(x) through the date of such determination.

 

“Second Amendment to Limited Waiver Agreement Effective Date” has the meaning given such term in the Second Amendment to Limited Waiver and Seventh Amendment to Credit Agreement and Amendment to Other Loan Documents dated as of March   , 2016, by and among the Borrower, the Administrative Agent, the Required Lenders, the Swingline Lender and the Issuing Lender, and acknowledged and agreed to by each of the Subsidiary Guarantors.

 

(b)           From and after the Second Amendment to Limited Waiver Agreement Effective Date, the following definitions contained in Section 1.1 of the Credit Agreement are added or amended and restated in their entireties to read as follows:

 

“L/C Commitment” means the lesser of (a) 12,000,000 or, if the Nuclear Services Letter of Credit is issued on or prior to April 20, 2016, $14,000,000, and (b) the Revolving Credit Commitment.

 

“Nuclear Services Letter of Credit” means a Letter of Credit in a face amount of up to $3,400,000, in a form satisfactory to the Required Lenders in their sole discretion, issued by the Issuing Lender on or prior to April 20, 2016 and requested by Borrower in accordance with Article III to support obligations of Borrower or any of its Subsidiaries in connection with its nuclear services business.

 

“Revolving Credit Commitment”  means (a) as to any Revolving Credit Lender, the obligation of such Revolving Credit Lender to make Revolving Credit Loans to the account of the Borrower hereunder in an aggregate principal amount at any time outstanding not to exceed the amount set forth opposite such Revolving Credit Lender’s name on the Register, as such amount may be modified at any time or from time to time pursuant to the terms hereof (including, without limitation, Section 4.13) and (b) as to all Revolving Credit Lenders, the aggregate commitment of all Revolving Credit Lenders to make Revolving Credit Loans, as such amount may be modified at any time or from time to time pursuant to the terms hereof (including, without limitation, Section 4.13).  As of the Second Amendment to Limited Waiver Agreement Effective Date, the amount of the Revolving Credit Commitment of each Revolving Credit Lender is set forth on Exhibit A to the Limited Waiver Agreement and Seventh Amendment to Credit Agreement. Immediately prior to giving effect to the mandatory principal prepayment required on the Second Amendment to Limited Waiver Agreement Effective Date under Section 2.4(b)(vi)(A), the Aggregate Revolving Credit Commitments of all the Revolving Credit Lenders on the Second Amendment to Limited Waiver Agreement Effective Date is $85,000,000.

 

(c)           From and after the Second Amendment to Limited Waiver Agreement Effective Date, the penultimate sentence contained in Section 2.1 of the Credit Agreement, commencing “Notwithstanding anything to the contrary in this Agreement, the maximum outstanding principal amount”, is amended and restated in its entirety to read as follows:

 

Notwithstanding anything to the contrary contained in this Agreement, the maximum aggregate principal amount of Revolving Credit Loans which may be outstanding at any time under this Agreement shall not exceed the Revolving Credit Loan Cap Amount.

 

(d)           From and after the Second Amendment to Limited Waiver Agreement Effective Date, Section 2.4(b)(v) of the Credit Agreement is amended and replaced by the following Sections 2.4(b)(v), 2.4(b)(vi), 2.4(b)(vii), 2.4(b)(viii), 2.4(b)(ix), 2.4(b)(x), 2.4(b)(xi) and 2.4(b)(xii):

 

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(v)           Revolving Credit Loans in excess of the Revolving Credit Loan Cap Amount.  If on any day the aggregate outstanding principal amount of Revolving Credit Loans exceeds the  Revolving Credit Loan Cap Amount on such date, the Borrower shall (1) first, to the extent necessary to eliminate such excess amount, immediately repay outstanding Revolving Credit Loans which are Base Rate Loans (and/or reduce any pending requests for a borrowing or continuation or conversion of such Loans submitted in respect of such Loans on such day), if any, in an amount equal to such excess amount, and (2) second, if any such excess remains, to the extent necessary to eliminate such excess amount, immediately repay outstanding Revolving Credit Loans which are LIBOR Rate Loans denominated in Dollars (and/or reduce any pending requests for a borrowing or continuation or conversion of such Loans submitted in respect of such Loans on such day) in an amount equal to such remaining excess amount.

 

(vi)          Mandatory Principal Prepayments on Second Amendment to Limited Waiver Agreement Effective Date and April 15, 2016. The Borrower shall make (A) a mandatory principal prepayment in the amount of $500,000 on the Second Amendment to Limited Waiver Agreement Effective Date with respect to the Revolving Credit Loans and (B) a mandatory principal payment in the amount of $500,000 on April 15, 2016 with respect to the Revolving Credit Loans.

 

(vii)         Asset Dispositions.  The Borrower shall make a mandatory principal prepayment of the Revolving Credit Loans and/or Cash Collateralize the L/C Obligations in the manner set forth in clause (xi) below in an amount equal to one hundred percent (100%) of the aggregate Net Cash Proceeds from any Asset Disposition (other than any Asset Disposition permitted pursuant to, and in accordance with Section 8.5).  Such prepayment shall be made within three (3) days of the date of receipt of the Net Cash Proceeds of any such Asset Disposition by any Credit Party or any of its Subsidiaries.

 

(viii)        Debt Issuances.  The Borrower shall make a mandatory principal prepayment of the Revolving Credit Loans and/or Cash Collateralize the L/C Obligations in the manner set forth in clause (xi) below in an amount equal to one hundred percent (100%) of the aggregate net Cash Proceeds from any Debt Issuance not otherwise permitted pursuant to Section 8.1. Such repayment shall be made within three (3) days of the date of receipt of the Net Cash Proceeds of any such Debt Issuance by any Credit Party or any of its Subsidiaries.

 

(ix)          Equity Issuances.  The Borrower shall make a mandatory principal prepayment of the Revolving Credit Loans and/or Cash Collateralize the L/C Obligations in the manner set forth in clause (xi) below in an amount equal to one hundred percent (100%) of the aggregate Net Cash Proceeds from any Equity Issuance.  Such prepayment shall be made within three (3) days of the date of receipt of the Net Cash Proceeds of any such Equity Issuance by any Credit Party or any of its Subsidiaries.

 

(x)           Nuclear Services Letter of Credit. The Borrower shall make a mandatory principal prepayment of the Revolving Credit Loans and/or Cash Collateralize the L/C Obligations in the manner set forth in clause (xi) below in an amount equal to one hundred percent (100%) of the face amount of the Nuclear Services Letter of Credit plus such additional amount as necessary to cause such principal prepayment to be in an even increment of $100,000 (e.g., if the face amount of the Nuclear Services Letter of Credit is $3,230,000, the prepayment required under this clause (x) will be $3,300,000).  Such prepayment shall be made at least one Business Day prior to the date on which the Nuclear Services Letter of Credit is issued.

 

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(xi)         Notice of Prepayments under Clauses (vii) through (x) above; Order of Prepayment under Clauses (vi) through (x) above.  Upon the occurrence of any event triggering a prepayment  requirement under clauses (vii) through (x) above, the Borrower shall promptly deliver of a Notice of Prepayment to the Administrative Agent and upon receipt of such notice, the Administrative Agent shall promptly notify the Lenders.  Each prepayment under clauses (vi) through (x) above shall be applied as follows: (1) first, to immediately repay outstanding Revolving Credit Loans which are Base Rate Loans, (2) second, to immediately repay outstanding Revolving Credit Loans which are LIBOR Rate Loans denominated in Dollars, and (3) third, to immediately Cash Collateralize the L/C Obligations.

 

(xii)         Compliance and Payment.  The Borrower’s compliance with this Section 2.4(b) shall be tested from time to time by the Administrative Agent at its sole discretion, but in any event shall be tested on the date on which (A) the Borrower requests that the applicable Lenders make a Revolving Credit Loan, or (B) the Borrower requests that an Issuing Lender issue a Letter of Credit.  Each such repayment pursuant to this Section 2.4(b) shall be accompanied by any amount required to be paid pursuant to Section 4.9.

 

(e)           From and after the Second Amendment to Limited Waiver Agreement Effective Date, the last sentence of Section 3.1(a) of the Credit Agreement is amended and restated in its entirety to read as follows:

 

Notwithstanding anything to the contrary in this Agreement, the maximum amount of L/C Obligations that the Borrower shall be able to have at any time under this Agreement shall be $12,000,000 in the aggregate; provided, that if the Nuclear Services Letter of Credit is issued on or prior to April 20, 2016, the maximum amount of L/C Obligations that the Borrower shall be able to have at any time under this Agreement shall be $14,000,000 in the aggregate.

 

(f)            From and after the Second Amendment to Limited Waiver Agreement Effective Date, Section 4.13 of the Credit Agreement is hereby amended to read as follows:

 

Section 4.13  Automatic Reductions in the Revolving Credit Commitments of the Lenders.  The Revolving Credit Commitment of each Lender shall be automatically and permanently reduced by the amount of any mandatory prepayment of the Revolving Credit Loans of such Lender received by such Lender pursuant to Section 2.4(b)(vi), Section 2.4(b)(vii), Section 2.4(b)(viii), Section 2.4(b)(ix) or Section 2.4(b)(x) simultaneously with such Lender’s receipt of such mandatory prepayment.

 

5.             REPRESENTATIONS AND WARRANTIES TRUE; NO EVENT OF DEFAULT.  By its execution and delivery of this Amendment, the Borrower represents and warrants that, as of the Second Amendment to Limited Waiver Agreement Effective Date:

 

(a)           other than the representations and warranties with respect to the previously delivered financial statements for Fiscal Year 2012, Fiscal Year 2013, Fiscal Year 2014, the representations and warranties contained in the Credit Agreement and the other Loan Documents are true and correct in all material respects, on and as of the date hereof as made on and as of such date, except for any representation and warranty that is qualified by materiality or reference to Material Adverse Effect, in which case such representation and warranty shall be true and correct in all respects on and as of the date hereof as if made on and as of such date, (except for any such representation and warranty that by its terms is made only as of an earlier date, which representation and warranty shall remain true and correct in all material respects as of such earlier date, except for any representation and warranty that is qualified

 

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by materiality or reference to Material Adverse Effect, in which case such representation and warranty shall be true and correct in all respects as of such earlier date);

 

(b)           no event has occurred and is continuing which constitutes a Default or an Event of Default except for the Known Existing Events of Default and the Anticipated Events of Default and no event has occurred and is continuing which constitutes a Waiver Termination Event except for the Known Existing Waiver Termination Events;

 

(c)           (i) the Borrower and each other Credit Party has full power and authority to execute and deliver this Amendment, (ii) this Amendment has been duly executed and delivered by the Borrower and each other Credit Party, and (iii) each of the Limited Waiver and Seventh Amendment to Credit Agreement, as amended by this Amendment, the Credit Agreement, as amended by the Limited Waiver and Seventh Amendment to Credit Agreement, and the other Loan Documents, as amended by this Amendment, constitutes the legal, valid and binding obligations of the Borrower and the other Credit Parties party thereto, enforceable against the Borrower or such Credit Party, as applicable, in accordance with their respective terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar state or federal debtor relief laws from time to time in effect which affect the enforcement of creditors’ rights in general and the availability of equitable remedies, regardless of whether considered in a proceeding in equity or at law;

 

(d)           neither the execution, delivery and performance of this Amendment, nor the consummation of any transactions contemplated herein, will conflict with, result in a breach of or constitute a default under any indenture, agreement or other instrument to which the Borrower or any other Credit Party is a party or by which any of its properties may be bound or any Governmental Approval relating to the Borrower or to any Credit Party, except to the extent such conflict, breach or default, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect; and

 

(e)           no authorization, approval, consent, or other action by, notice to, or filing with, any governmental authority or other Person not already obtained (including the Board of Directors (or other similar governing body) of the Borrower and of each other Credit Party) is required for the execution, delivery or performance of this Amendment by the Borrower and the other Credit Parties.

 

6.             CONDITIONS TO EFFECTIVENESS OF THIS AMENDMENT.  This Amendment shall be effective upon satisfaction of each of the following conditions precedent to the satisfaction of the Administrative Agent:

 

(a)           the Administrative Agent shall have received counterparts of this Amendment, duly executed by the Administrative Agent, the Required Lenders, the Swingline Lender and the Issuing Lender;

 

(b)           the Administrative Agent shall have received counterparts of this Amendment, duly executed by the Borrower and duly acknowledged and agreed to by each Subsidiary Guarantor;

 

(c)           the Administrative Agent shall have received from the Borrower, in immediately available funds, the mandatory principal prepayment required by Section 2.4(b)(vi)(A) of the Credit Agreement, for application in accordance with Section 2.4(b)(xi) of the Credit Agreement;

 

(d)           the Administrative Agent shall have received from the Borrower payment of all costs and fees of the Administrative Agent which are unpaid and invoiced prior to the date of this Amendment, including those costs and fees related to travel costs and expenses, appraisals of real estate,

 

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appraisals of machinery and equipment, environmental reports, title insurance, legal fees and expenses and other out-of-pocket expenses;

 

(e)           the Administrative Agent shall have received, in form and substance satisfactory to the Administrative Agent and its counsel, an amendment to the engagement letter between the Borrower and Huron Consulting (or an amended and restated engagement letter between the Borrower and Huron Consulting) with an increased scope of services reasonably acceptable to the Administrative Agent, including having Huron Consulting assist the Borrower in preparing a revised budget for 2016 and plan for repayment of the Obligations; and

 

(f)            the Administrative Agent shall have received, in form and substance satisfactory to the Administrative Agent and its counsel, such other documents, certificates and instruments as the Administrative Agent shall reasonably require.

 

7.             REFERENCES.

 

(a)           Upon the Second Amendment to Limited Waiver Agreement Effective Date, each reference in the Credit Agreement to “this Agreement” or words of like import and each reference in any other Loan Document to the “Credit Agreement” or words of like import shall mean and be a reference to the Credit Agreement, as amended by this Amendment.

 

(b)           Upon the Second Amendment to Limited Waiver Agreement Effective Date, each reference in the Limited Waiver and Seventh Amendment to Credit Agreement to “this Agreement” or words of like import shall mean and be a reference the Limited Waiver and Seventh Amendment to Credit Agreement, as amended by this Amendment.

 

(c)           The Credit Agreement, the Limited Waiver and Seventh Amendment to Credit Agreement and the other Loan Documents, as amended by this Amendment, shall remain in full force and effect and are hereby ratified and confirmed.

 

8.             RELEASE.  As a material part of the consideration for the Administrative Agent, the Required Lenders, the Swingline Lender and the Issuing Lender entering into this Amendment, the Borrower and each Subsidiary Guarantor (collectively, the “Releasors”) agree as follows (the “Release Provision”):

 

(a)           The Releasors, jointly and severally, hereby release and forever discharge the Administrative Agent, the Swingline Lender, the Issuing Lender, each Lender and the Administrative Agent’s, the Swingline Lender’s, Issuing Lender’s and each Lender’s predecessors, successors, assigns, officers, managers, directors, shareholders, employees, agents, attorneys and other professionals, representatives, parent corporations, subsidiaries, and affiliates (hereinafter all of the above collectively referred to as the “Lender Group”), from any and all claims, counterclaims, demands, damages, debts, agreements, covenants, suits, contracts, obligations, liabilities, accounts, offsets, rights, actions, and causes of action of any nature whatsoever and whether arising at law or in equity, presently possessed, whether known or unknown, whether liability be direct or indirect, liquidated or unliquidated, presently accrued, whether absolute or contingent, foreseen or unforeseen, and whether or not heretofore asserted arising out of, arising under or related to the Loan Documents (collectively, the “Claims”), that Releasors may have or allege to have against any or all of the Lender Group and that arise from events occurring before the Second Amendment to Limited Waiver Agreement Effective Date.

 

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(b)                                  The Releasors agree not to sue any of the Lender Group nor in any way assist any other person or entity in suing the Lender Group with respect to any of the Claims released herein.  The Release Provision may be pleaded as a full and complete defense to, and may be used as the basis for an injunction against, any action, suit, or other proceeding which may be instituted, prosecuted, or attempted in breach of the release contained herein.

 

(c)                                   The Releasors acknowledge, warrant, and represent to Lender Group that:

 

(i)                                     The Releasors have read and understand the effect of the Release Provision.  The Releasors have had the assistance of independent counsel of their own choice, or have had the opportunity to retain such independent counsel, in reviewing, discussing, and considering all the terms of the Release Provision; and if counsel was retained, counsel for Releasors has read and considered the Release Provision and advised Releasors with respect to the same.  Before execution of this Agreement, the Releasors have had adequate opportunity to make whatever investigation or inquiry they may deem necessary or desirable in connection with the subject matter of the Release Provision.

 

(ii)                                 The Releasors are not acting in reliance on any representation, understanding, or agreement not expressly set forth herein.  The Releasors acknowledge that Lender Group has not made any representation with respect to the Release Provision except as expressly set forth herein.

 

(iii)                             The Releasors have executed this Amendment and the Release Provision thereof as a free and voluntary act, without any duress, coercion, or undue influence exerted by or on behalf of any person or entity.

 

(iv)                              The Releasors are the sole owners of the Claims released by the Release Provision, and the Releasors have not heretofore conveyed or assigned any interest in any such Claims to any other person or entity.

 

(d)                                  The Releasors understand that the Release Provision was a material consideration in the agreement of the Administrative Agent, Swingline Lender, Issuing Lender and each Lender to enter into this Amendment.

 

(e)                                   It is the express intent of the Releasors that the release and discharge set forth in the Release Provision be construed as broadly as possible in favor of Lender Group so as to foreclose forever the assertion by the Releasors of any Claims released hereby against Lender Group.

 

(f)                                    If any term, provision, covenant, or condition of the Release Provision is held by a court of competent jurisdiction to be invalid, illegal, or unenforceable, the remainder of the provisions shall remain in full force and effect.

 

(g)                                  The Releasors acknowledge that they may hereafter discover facts in addition to or different from those that they now know or believe with respect to the Claims released herein, but the Releasors expressly shall have and intend to fully, finally and forever have released and discharged any and all such Claims.  The Releasors expressly waive any provision of statutory or decisional law to the effect that a general release does not extend to Claims that the releasing party does not know or suspect to exist in such party’s favor at the time of executing the release.

 

11

 

9.                                      COSTS, EXPENSES AND TAXES.  The Borrower agrees to pay on demand all costs and expenses of the Administrative Agent in connection with the preparation, reproduction, execution and delivery of this Amendment and the other instruments and documents to be delivered hereunder (including the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent with respect thereto).

 

10.                               SUBSIDIARY GUARANTORS’ ACKNOWLEDGMENT AND AGREEMENT.  By signing below, each Subsidiary Guarantor (a) acknowledges, consents and agrees to this Amendment, (b) acknowledges and agrees to any amendment to its obligations in respect of the Subsidiary Guaranty Agreement made pursuant to this Amendment, (c) acknowledges and agrees that its obligations in respect of the Subsidiary Guaranty Agreement and the Security Agreement are not released, diminished, waived, modified, impaired or affected in any manner by this Amendment or any of the provisions contemplated herein, (d) ratifies and confirms its obligations under the Subsidiary Guaranty Agreement and the Security Agreement, and (e) acknowledges and agrees that it has no claims or offsets against, or defenses or counterclaims to, the Subsidiary Guaranty Agreement, the Security Agreement or any other Loan Documents or Obligations.

 

11.                               EXECUTION IN COUNTERPARTS.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which when taken together shall constitute but one and the same instrument.  For purposes of this Amendment, a counterpart hereof (or signature page thereto) signed and transmitted by any Person party hereto to the Administrative Agent (or its counsel) by facsimile machine, telecopier or electronic mail is to be treated as an original.  The signature of such Person thereon, for purposes hereof, is to be considered as an original signature, and the counterpart (or signature page thereto) so transmitted is to be considered to have the same binding effect as an original signature on an original document.

 

12.                               GOVERNING LAW.  This Amendment and the other Loan Documents and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the law of the State of New York.

 

13.                               WAIVER OF JURY TRIAL.  EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

14.                               HEADINGS.  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.

 

15.                               ENTIRE AGREEMENT.  THIS AMENDMENT IS A LOAN DOCUMENT.  THE LIMITED WAIVER AND SEVENTH AMENDMENT TO CREDIT AGREEMENT AND THE 

 

12

 

CREDIT AGREEMENT, EACH AS AMENDED BY THIS AMENDMENT, AND THE OTHER LOAN DOCUMENTS, AS AMENDED BY THIS AMENDMENT, REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL  AGREEMENTS BETWEEN THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

REMAINDER OF PAGE LEFT INTENTIONALLY BLANK

 

13

 

IN WITNESS WHEREOF, this Amendment is executed as of the date first set forth above.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    	
 
    
	
 
    	
GLOBAL   POWER EQUIPMENT GROUP INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Craig Holmes
    
	
 
    	
Name:
    	
Craig   Holmes
    
	
 
    	
Title:
    	
SVP
    

 

Signature Page to Second Amendment to Limited Waiver and Seventh Amendment to Credit Agreement
 and Amendment to Other Loan Documents

 

 

	
 
    	
ADMINISTRATIVE   AGENT AND LENDERS:
    
	
 
    	
 
    	
 
    
	
 
    	
WELLS   FARGO BANK, NATIONAL ASSOCIATION,
    
	
 
    	
as   Administrative Agent, Swingline Lender, the Issuing
    
	
 
    	
Lender   and Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kristine B. Netjes
    
	
 
    	
Name:
    	
Kristine   B. Netjes
    
	
 
    	
Title:
    	
Senior   Vice President
    

 

Signature Page to Second Amendment to Limited Waiver and Seventh Amendment to Credit Agreement
 and Amendment to Other Loan Documents

 

 

	
 
    	
U.S.  BANK NATIONAL ASSOCIATION,
    
	
 
    	
as   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Matthew Karki
    
	
 
    	
Name:
    	
Matthew   Karki
    
	
 
    	
Title:
    	
Assistant Vice   President
    

 

Signature Page to Second Amendment to Limited Waiver and Seventh Amendment to Credit Agreement
 and Amendment to Other Loan Documents

 

 

	
 
    	
BRANCH   BANKING AND TRUST COMPANY,
    
	
 
    	
as   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mitch Turknett
    
	
 
    	
Name:
    	
Mitch   Turknett
    
	
 
    	
Title:
    	
SVP
    

 

Signature Page to Second Amendment to Limited Waiver and Seventh Amendment to Credit Agreement
 and Amendment to Other Loan Documents

 

 

	
 
    	
JPMORGAN   CHASE BANK, N.A.,
    
	
 
    	
as   Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joseph T. Nash
    
	
 
    	
Name:
    	
Joseph   T. Nash
    
	
 
    	
Title:
    	
Underwriting Jr.   Associate
    

 

Signature Page to Second Amendment to Limited Waiver and Seventh Amendment to Credit Agreement
 and Amendment to Other Loan Documents

 

 

	
 
    	
ACKNOWLEDGED   AND AGREED TO:
    
	
 
    	
 
    
	
 
    	
AS   SUBSIDIARY GUARANTORS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WILLIAMS   INDUSTRIAL SERVICES GROUP,
    
	
 
    	
L.L.C.
    
	
 
    	
BRADEN   MANUFACTURING, L.L.C.
    
	
 
    	
WILLIAMS   INDUSTRIAL SERVICES, LLC
    
	
 
    	
WILLIAMS   SPECIALTY SERVICES, LLC
    
	
 
    	
WILLIAMS   PLANT SERVICES, LLC
    
	
 
    	
CONSTRUCTION &   MAINTENANCE
    
	
 
    	
PROFESSIONALS, LLC
    
	
 
    	
WILLIAMS   GLOBAL SERVICES, INC.
    
	
 
    	
KOONTZ-WAGNER   CUSTOM CONTROLS
    
	
 
    	
HOLDINGS LLC
    
	
 
    	
TOG   HOLDINGS, INC.
    
	
 
    	
TOG   MANUFACTURING COMPANY, INC.
    
	
 
    	
GPEG,   LLC
    
	
 
    	
HETSCO   HOLDINGS, INC.
    
	
 
    	
HETSCO, INC.
    
	
 
    	
GLOBAL   POWER TECHNICAL SERVICES, INC.
    
	
 
    	
BRADEN   HOLDINGS, LLC
    
	
 
    	
GLOBAL   POWER PROFESSIONAL SERVICES INC.
    
	
 
    	
BRADEN   CONSTRUCTION SERVICES, INC.
    
	
 
    	
STEAM   ENTERPRISES LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Erin Gonzalez
    
	
 
    	
Name:
    	
Erin   Gonzalez
    
	
 
    	
Title:
    	
Vice President and   Treasurer
    

 

 

Signature Page to Second Amendment to Limited Waiver and Seventh Amendment to Credit Agreement
 and Amendment to Other Loan Documents

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