Document:

Pioneer Power Solutions, Inc. 10-Q

Exhibit
10.2

 

August
8, 2019

Pioneer
Power Solutions, Inc.

Pioneer
Electrogroup Canada Inc.

400
Kelby Street, 9th Floor

Fort
Lee, NJ 07024

	Attention:	Thomas
                                         Klink

Re: credit
facilities granted by bank of montreal to pioneer power solutions, inc. and pioneer electrogroup canada inc. – temporary
amendment to borrowing base in the ppsi credit agreement

Gentlemen:

Reference
is hereby made to that certain Amended and Restated Credit Agreement dated as of April 29, 2016, as amended from time to time
(collectively, the “PPSI Credit Agreement”), between Pioneer Power Solutions, Inc. (the “US
Borrower” or “PPSI”), the Guarantors party thereto and Bank of Montreal (the “Bank”),
acting through its Chicago branch and to that certain Amended and Restated Credit Agreement dated as of April 29, 2016, as amended
from time to time (collectively, the “PECI Credit Agreement”) , among Pioneer Electrogroup Canada Inc., a Quebec
corporation, as borrower (the “Canadian Borrower” or “PECI”), and the Bank. Reference is
also made to the Bank’s letter dated November 20, 2018 which was accepted by the Borrowers and the Guarantors in connection
with the sale of assets by the US Borrower and the Canadian Borrower. Capitalized terms used herein without definition shall have
the same meanings herein as such terms have in the PPSI Credit Agreement.

Further
to our discussions, we understand that the US Borrower and the Canadian Borrower (collectively, the “Borrowers”)
have entered into a Stock Purchase Agreement with Pioneer Acquireco ULC (the “Buyer”) on or about June 28,
2019 (the “SPA”) in order for the Buyer to acquire all outstanding capital stock of the Borrowers and their
Subsidiaries (the “Mill Point Transaction”). All existing credit facilities granted by the Bank to the Borrowers
under the PPSI Credit Agreement and the PECI Credit Agreement will be repaid in full concurrently with the closing of the Mill
Point Transaction.

Until
closing of the Mill Point Transaction and repayment in full of all outstanding credit facilities granted by the Bank to the Borrowers,
the Canadian Borrower has asked the Bank to amend temporarily the Borrowing Base set forth in the PPSI Credit Agreement in order
to increase the percentage of the outstanding unpaid amount of Eligible Receivables from 80% to 90% (the “Temporary Borrowing
Base Increase”), up to a maximum of CDN$1,000,000 of additional Borrowing Base.

    	 

    	 

    

Therefore,
the Bank hereby confirms its agreement to put the Temporary Borrowing Base Increase until the earlier of (i) the closing of the
Mill Point Transaction which shall include the repayment in full of all amounts owed under the PPSI Credit Agreement and the PECI
Credit Agreement, and (ii) August 31, 2019.

In
addition, in the event that the SPA is terminated prior to closing and if the Borrowers receive the termination fee provided
for in such SPA, the Borrowers undertake to remit to the Bank an amount corresponding to 50% of such termination fee
which shall be applied by the Bank in permanent reduction of the Term Loan Facility granted under the PPSI Credit
Agreement.

Finally,
an amendment fee of C$25,000 shall be payable by the Canadian Borrower to the Bank upon signature of this letter of agreement
for the Temporary Borrowing Base Increase.

Until
full repayment of all amounts owed to the Bank, the Obligors agree that they remain obligated to comply at all times with the
terms and conditions of the PPSI Credit Agreement and the PECI Credit Agreement. Except as specifically waived or amended hereby,
all of the terms and conditions of the PPSI Credit Agreement and the PECI Credit Agreement stand and remain in full force and
effect. In addition, the Bank hereby confirms that no increase in the revolving credits or margin deficit under such revolving
credits will be allowed or tolerated by the Bank until full repayment of all credit facilities.

This
letter of agreement shall be effective upon the execution and delivery hereof by the Bank and the Obligors. Please provide your
consent to the conditions set forth in this letter of agreement to the Bank by no later than August 9, 2019, before 12:00 noon
EST.

This
letter of agreement may be executed in any number of counterparts, and by different parties on separate counterpart signature
pages, each of which shall constitute an original and all of which taken together shall constitute one and the same instrument.
Delivery of a counterpart hereof 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.

 

    	 

    	 

    

This
letter of agreement is entered into between us as of the date and year first above written.

 

	 	Bank
of Montreal, acting through its Chicago Branch
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	
	 	Title:	
	 	 
	 	 
	 	 
	 	Bank
of Montreal
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	
	 	Title:	
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	
	 	Title:	

 

    	 

    	 

    

 

This
letter is acknowledged and agreed to as of the date and year first above written.

 

	 	Pioneer
    Power Solutions, Inc.
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	Nathan Mazurek
	 	Title:	President

 

	 	By:	 
	 	Name:	Thomas Klink
	 	Title:	Chief Financial Officer

  

	 	Pioneer
Electrogroup Canada Inc.
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	Nathan Mazurek
	 	Title:	President

 

	 	By:	 
	 	Name:	Thomas Klink
	 	Title:	Chief Financial Officer

 

	 	Jefferson Electric, Inc.
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	Nathan Mazurek
	 	Title:	President

 

	 	By:	 
	 	Name:	Thomas Klink
	 	Title:	Chief Financial Officer

 

    	 

    	 

    

	 	Pioneer Critical Power Inc.
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	Nathan Mazurek
	 	Title:	President

 

	 	By:	 
	 	Name:	Thomas Klink
	 	Title:	Chief Financial Officer

 

	 	Pioneer Custom Electrical products corp.
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	Nathan Mazurek
	 	Title:	President

 

	 	By:	 
	 	Name:	Thomas Klink
	 	Title:	Chief Financial Officer

 

 

	 	Titan Energy Systems, Inc.
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	Nathan Mazurek
	 	Title:	President

 

	 	By:	 
	 	Name:	Thomas Klink
	 	Title:	Chief Financial OfficerPioneer Power Solutions, Inc. 10-Q

 

Exhibit 10.3

 

CONFIDENTIAL

August
8, 2019

Mr.
Thomas Klink

Chief
Financial Officer

Pioneer
Power Solutions, Inc.

Pioneer
Electrogroup Canada Inc.

400
Kelby Street, 9th Floor

Fort Lee, NJ 07024

 

RE:
WAIVER FOR BREACH OF COVENANTS

 

Dear
Mr. Klink,

 

We
refer to our Amended and Restated Credit Agreement dated as of April 29, 2016, as amended from time to time (collectively, the
“PPSI Credit Agreement”), between Pioneer Power Solutions, Inc. (the “US Borrower”
or “PPSI”), the Guarantors party thereto and Bank of Montreal (the “Bank”),
acting through its Chicago branch and to that certain Amended and Restated Credit Agreement dated as of April 29, 2016, as amended
from time to time (collectively, the “PECI Credit Agreement”) , among Pioneer Electrogroup Canada Inc., a Quebec
corporation, as borrower (the “Canadian Borrower” or “PECI”), and the Bank. Capitalized
terms used herein without definition shall have the same meanings herein as such terms have in the PPSI Credit Agreement. We more
specifically refer to the sections pertaining to the financial covenants and events of default.

 

Following
receipt of the information for the fiscal quarter ending June 30, 2019, we understand that the US Borrower and the Canadian
Borrower are in default to comply with the minimum EBITDA and Tnagible New Worth ratio set forth in the PPSI Credit Agreement
and the PECI Credit Agreement (the “Default”). As requested, the Bank hereby agrees to waive this Default but
only for the fiscal quarter ending June 30, 2019. This waiver is limited to the matters and time period expressly stated
herein. The Bank reserves all of its rights and remedies under the PPSI Credit Agreement and the PECI Credit Agreement should
PPSI or PECI be or become otherwise in default under the PPSI Credit Agreement or the PECI Credit Agreement, in the event of other
breaches under the PPSI Credit Agreement or the PECI Credit Agreement or should the Bank’s position, in the Bank’s
sole determination, further deteriorate.

 

Regards,

Bank of Montreal

 

 

 

Per:
Deborah Conroy

Senior
Accounts Manager

Tel: 514-877-7764

deborah.conroy@bmo.comExhibit

Exhibit 10.20

FOURTH AMENDMENT TO EMPLOYMENT AGREEMENT

WHEREAS, iHeartMedia, Inc. (formerly known as CC Media Holdings, Inc.) (“Company”) and Steven J. Macri (“Employee”) entered into an Employment Agreement effective October 7, 2013 and amended on July 3, 2017, February 27, 2018 and March 4, 2019 (“Collectively, the Agreement”);

WHEREAS, the parties desire to amend the above-referenced Agreement;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties hereto, the parties enter into this Fourth Amendment to Employment Agreement (“Fourth Amendment”).

1.This Fourth Amendment is effective upon complete execution by the parties.

2.    Section 1 (Term of Employment) of the Agreement is amended such that the Employment Period is extended through December 31, 2019.
3.    Section 3(e) (Long Term Incentive) of the Agreement is deleted in its entirety and replaced as follows:
(e)          One-Time Long-Term Incentive Grant.  As additional consideration for entering into this Agreement, Employee has been awarded a one-time Long Term Incentive Grant of 150,000 units, allocated as follows:  (i) 52,500 restricted stock units and (ii) 97,500 options to acquire shares of Class A Common Stock of iHeartMedia, Inc. (“iHM, Inc.”), pursuant to the iHM, Inc. 2019 Incentive Equity Plan (the “Plan”), and applicable award agreement and related vesting provisions. 
4.    Section 9(e)(i) (Compensation Upon Termination) of the Agreement is amended to such that the Severance Payments shall increase from One Million Four Hundred Thousand Dollars ($1,400,000.00) to Two Million Dollars ($2,000,000.00), paid out over the same twelve (12) month Severance Pay Period.  All other provisions in Section 9(e)(i) shall remain unchanged.
5.    This Fourth Amendment represents the complete and total understanding of the parties with respect to the content thereof, and cannot be modified or altered except if done so in writing, and executed by all parties.  All other provisions of the Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed this Fourth Amendment on the date written below and upon full execution by all parties, this Agreement shall be effective as set forth in Section 1 above.

EMPLOYEE:

	
			
	/s/ Steven J. Macri
	Date:
	8/14/19

	Steven J. Macri
	 
	 

	 
	 
	 

1

COMPANY:

	
			
	/s/ Richard J. Bressler
	Date:
	8/14/19

	Richard J. Bressler
	 
	 

	President, Chief Operating Officer and
Chief Financial Officer

	 
	 

PREPARED BY: LW/tn

2

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