Document:

Exhibit 10.11.3
CHASE CORPORATION
ANNUAL INCENTIVE PLAN
Fiscal Year 2022
The Company, in addition to salary and benefits provides further cash compensation to key employees based on achieving preset annual goals.
The plan is maintained and paid at the sole discretion of the Board of Directors and may be modified or suspended at any time by the Board.
Upon approval by the Board of Directors, the Chief Financial Officer will administer the plan.
It is the intent of the Board of Directors to exclude the effect of unusual events and expenses from the calculation.  The Compensation and Management Development Committee is given the authority by the Board to use its discretion in determining relevant exclusions.
Targets, awards, opportunities and associated performance award methodology and eligibility requirements will be established by the Compensation and Management Development Committee for the Chief Executive Officer, the Chief Financial Officer and the General Counsel and approved by the Board of Directors.  For senior management, the Executive Chairman and the Chief Executive Officer will jointly make recommendations to be approved by the Compensation and Management Development Committee.  For all other employees, the Executive Chairman and the Chief Executive Officer will be the approval authority.  See schedule below for award opportunities for the executive officers:
For fiscal year 2022, budgeted Adjusted EBITDA, less the effects of foreign transaction gain (loss), aka EBITDAX, is the target.   Payment threshold is 80% of the target which yields 50% of individual award opportunity.  There is a cap on the incentive payments of 200% achieved at 120% of the target performance.
	​

	​

	​

	​

	Actual v. Target
	    
	Award Earned
	 

	80% of target
	​
	50
	%

	90% of target
	​
	75
	%

	100% of target
	​
	100
	%

	110% of target
	​
	150
	%

	120% of target
	​
	200
	%

​
Payment is made in cash no later than 75 days from the close of the fiscal year.
	Award Opportunity
	​

	Chief Executive Officer
	100% of base salary for 100% achievement of target. At 80% 
of target award is 50% of base salary. For results in excess of 100% target, award increases to 200% of base salary at 120% of the target.

	​
	​

	Chief Financial Officer
	60% of base salary for 100% achievement of target. At 80% 
of target award is 30% of base salary. For results in excess of 100% target, award increases to 120% of base salary at 120% of the target.

	​
	​

	General Counsel
	25% of base salary for 100% achievement of target. At 80% 
of target award is 12.5% of base salary. For results in excess of 100% target, award increases to 50% of base salary at 120% of the target.

​
In addition to the financial targets the Compensation and Management Development Committee may choose to establish qualitative measurement criteria.  Together with the financial measures these are referred to as critical success factors (CSF).  When utilized, the Chief Executive Officer’s CSFs and appropriate weightings are approved by the Board.  The Executive Chairman and the Chief Executive Officer will jointly approve all others.
​
Other management and non-union bonus participants will have opportunities established by the Executive Chairman and the Chief Executive Officer.
​

To be eligible an employee must be on the active payroll when the bonus is paid and for at least 6 months prior to the end of the fiscal year.Exhibit 10.11.4
CHASE CORPORATION
Long Term Incentive Plan
Award Design and Grant Process
Fiscal Year Ending August 31, 2022
Key Provisions
		1.	There are three reward vehicles:  1) Performance-based restricted stock, 2) Time-vested restricted stock and 3) Stock options.  At least two will be used each year.  For the Chief Executive Officer and Chief Financial Officer, Fiscal Year 2022 performance shares will be 50%, time-vested restricted stock will be 25% and stock options will be 25%. For General Counsel, Fiscal Year 2022 time-vested restricted stock will be 50% and stock options will be 50%.

		2.	Time-vested restricted stock is fixed and not subject to performance measures and will vest at the end of the third fiscal year after the grant date (August 31, 2024), subject to grant date, pricing, and termination provisions listed below.

		3.	Stock options will be fixed based on a Black-Scholes calculation, and will vest in three equal annual allotments beginning on August 31, 2022 and be exercisable for 10 years.

		4.	Performance shares, designed to challenge and, when warranted, award executive leadership’s management of both the balance sheet and income statement, will be in the form of restricted stock subject to performance and other criteria as follows.

		●	Performance measure 1:

		o	Target is earnings per share (EPS) based on Fiscal Year 2022’s budget; by dividing net income by the number of diluted shares outstanding at August 31, 2021 (end of most recent fiscal year). Actual is net income for the measurement period divided by the same number of diluted shares used in the Target.

		o	Performance measurement period:  September 1, 2021 through August 31, 2022

		o	Vesting:  2 years after performance measurement period (August 31, 2024)

		o	Grant date:  first day of measurement period

		o	Stock price for award:  closing price for last trading day prior to grant date

		o	Threshold:  the point at which an award is earned (80% of the target).  Between threshold and target the award increases on a linear basis.

		o	Stretch area:  performance in excess of target awarded at a higher rate (200% for 120% achievement of target) with a cap of 200%.  Between target and cap award increases on a linear basis.

		o	Weighted value in award opportunity: 80%

Example:
		●	Individual opportunity is $50,000 at target; performance share opportunity (50%) is $25,000 at target; 80% of LTIP value relates to performance measure 1 (or $20,000).

		●	Stock price (8/31/2021) is $100.00

		●	Threshold is 80% of target

​
	Performance
	    
	Payout % of Target
	     
	Vesting Shares
	     
	Reward Value

	Threshold 80% of target
	​
	50 
	%  
	100 
	 
	$
	10,000 

	Target
	​
	100 
	%  
	200 
	 
	$
	20,000 

	Stretch at 120% of target
	​
	200 
	%  
	400 
	 
	$
	40,000 

​
Plan metrics:  standard performance measures are 80% threshold, 100% target and 120% maximum.
​
​

1

		●	Performance measure 2:

		o	Target is trailing three-year average Return on Invested Capital (“ROIC”) calculated using the budget for fiscal Year 2022 and prior two years’ (Fiscal years 2021 and 2020) actual results. Actual ROIC for the measurement period will be calculated using actual results for the three years ending August 31, 2022.

		o	Performance measurement period:  September 1, 2019 through August 31, 2022

		o	Vesting:  2 years after performance measurement period (August 31, 2024)

		o	Grant date: September 1, 2021, the first day of fiscal year 2022

		o	Stock price for award:  closing price for last trading day prior to grant date

		o	Threshold:  the point at which an award is earned (80% of the target).  Between threshold and target the award increases on a linear basis.

		o	Stretch area:  performance in excess of target awarded at a higher rate (200% for 120% achievement of target) with a cap of 200%.  Between target and cap award increases on a linear basis.

		o	ROIC defined as Earnings before Interest Expense and Income Tax, divided by the sum of equity and debt less cash on hand (ROIC = EBIT / (Equity + Debt - Cash)).

		o	Weighted value in award opportunity: 20%

Example:
		●	Individual opportunity is $50,000 at target; performance share opportunity (50%) is $25,000 at target; 20% of LTIP value relates to performance measure 2 (or $5,000).

		●	Stock price (8/31/2021) is $100.00

		●	Threshold is 80% of target

​
	Performance
	    
	Payout % of Target
	     
	Vesting Shares
	     
	Reward Value
	 

	Threshold 80% of target
	​
	50 
	%  
	25 
	 
	$
	2,500 
	​

	Target
	​
	100 
	%  
	50 
	 
	$
	5,000 
	​

	Stretch at 120% of target
	​
	200 
	%  
	100 
	 
	$
	10,000 
	​

​
Plan metrics:  standard performance measures are 80% threshold, 100% target and 120% maximum
​
​

2

		5.
	Termination provisions:

​
	

	

	

	

	

	Termination Event
	    
	Year
	     
	Payment in Shares

	Retirement
	 
	Pro-rated
	 
	Paid as scheduled

	Voluntary
	 
	All shares forfeit
	 
	No payment

	Without cause
	 
	Pro-rated
	 
	Paid as scheduled

	With cause
	 
	All shares forfeit
	 
	No payment

	Upon change of control
	 
	Acceleration at target
	 
	Paid at change of control

	Death or disability
	 
	Pro-rated
	 
	Paid as scheduled

​
		6.
	Eligibility:  key executives and others

​
	

	​

	

	

	

	Participant
	​
	Target % of Base Salary
	 

	Adam P. Chase
	​
	100
	%

	Michael J. Bourque
	​
	60
	%

	Jeffery D. Haigh
	​
	40
	%

​
Award opportunities are set annually, and the plan is subject to the approval of the Compensation and Management Development (“C&MD”) Committee and may be modified from time to time.
FY 2022 SCHEDULE
		●	Q4 FY21           Board approves continuance of plan and sets grant date

		●	Q4 FY21           Goals and awards proposed by management for FY22

		●	Q4 FY21           C&MD Committee reviews and approves FY22 plan

		●	Q1 FY22           Management presents FY21 plan achievement

		●	Q1 FY22           C&MD Committee approves FY21 results

		●	Q1 FY23           Management presents FY22 plan achievement

		●	Q1 FY23           C&MD Committee approves FY22 results

		●	Q4 FY24           Vested FY22 shares are released to participant

3ex_307508.htm

Exhibit 10.1

 

Execution Version

 

EIGHTH AMENDMENT TO LOAN AND SECURITY AGREEMENT AND WAIVER

 

THIS EIGHTH AMENDMENT TO LOAN AND SECURITY AGREEMENT AND WAIVER (this “Amendment”), dated as of November 12, 2021, is entered into by and between ENSERVCO CORPORATION, a Delaware corporation, DILLCO FLUID SERVICE, INC., a Kansas corporation, HEAT WAVES HOT OIL SERVICE LLC, a Colorado limited liability company, HEAT WAVES WATER MANAGEMENT LLC, a Colorado limited liability company, and ADLER HOT OIL SERVICE, LLC, a Delaware limited liability company (collectively, “Borrowers”), on the one hand, and EAST WEST BANK, a California banking corporation (“Lender”), on the other hand with reference to the following facts:

 

RECITALS

 

A.   Borrowers and Lender previously entered into that certain Loan and Security Agreement, dated as of August 10, 2017, as amended by the First Amendment to Loan and Security Agreement dated as of November 20, 2017, the Second Amendment to Loan and Security Agreement dated as of October 26, 2018, the Third Amendment to Loan and Security Agreement and Waiver dated as of August 14, 2019, the Fourth Amendment to Loan and Security Agreement dated as of July 6, 2020, the letter from Lender to Administrative Borrower dated August 10, 2020, the letter from Lender to Administrative Borrower dated September 14, 2020, the Fifth Amendment to Loan and Security Agreement and Waiver dated as of September 23, 2020, the Sixth Amendment to Loan and Security Agreement dated as of February 1, 2021, and the Seventh Amendment to Loan and Security Agreement dated as of April 26, 2021 (collectively, the “Loan Agreement”).

 

B.   An Event of Default occurred under Section 8.2 of the Loan Agreement as a result of Borrowers’ breach of Section 6.7(b) of the Loan Agreement by failing to achieve gross revenue of at least seventy percent (70%) of Borrowers’ projected gross revenue for the trailing three-month period ending on October 31, 2021 (such Event of Default hereinafter is referred to as the “Existing Event of Default”).

 

C.   Borrowers have requested that Lender waive the Existing Event of Default, which Lender is willing to do subject to the terms and conditions set forth below.

 

D.   Borrowers and Lender also wish to amend the Loan Agreement as set forth below.

 

NOW, THEREFORE, the parties hereto agree as follows:

 

1.    Defined Terms. All capitalized terms used in this Amendment without definition shall have the respective meanings specified for such terms in the Loan Agreement.

 

2.    Waiver of Existing Event of Default. Lender hereby waives the Existing Event of Default. This limited waiver shall not be deemed to amend or alter in any respect the terms and conditions of the Loan Agreement, the obligations of Borrowers to Lender thereunder or under any other Loan Document, or to constitute a waiver or release of Lender of any right, remedy or Event of Default under the Loan Agreement or any other Loan Document, except to the extent specifically set forth herein. Furthermore, this waiver shall not affect in any manner whatsoever any rights or remedies of Lender with respect to any other non-compliance by Borrowers with the Loan Agreement or any other Loan Document, whether in the nature of an Event of Default or otherwise, and whether now in existence or subsequently arising.

 

 

 

 

3.    Deletion of Minimum Liquidity Covenant; Amendment of Minimum Revenue Covenant. Section 6.7 of the Loan Agreement is hereby amended and restated to read in full as follows:

 

“6.7       Financial Covenants. Borrowers shall comply with each of the following financial covenants:         

 

(a)          [Reserved].

 

(b)         Revenue. (i) For the one-month period ending November 30, 2021, Borrowers shall achieve gross revenue of at least eighty percent (80%) of Borrowers’ projected gross revenue for such trailing one-month period, (ii) for the two-month period ending December 31, 2021, Borrowers shall achieve gross revenue of at least eighty percent (80%) of Borrowers’ projected gross revenue for such trailing two-month period, (iii) for each three-month period ending on January 31, 2022, February 28, 2022, and March 31, 2022, Borrowers shall achieve gross revenue of at least eighty percent (80%) of Borrowers’ projected gross revenue for each such trailing three-month period, (iv) and commencing with the three-month period ending April 30, 2022 and thereafter, Borrowers shall achieve gross revenue of at least seventy percent (70%) of Borrowers’ projected gross revenue for each such trailing three-month period; provided, that, with respect to determination of compliance with this clause (iv) for the three-month periods ending April 30, 2022 and May 31, 2022, Borrowers shall also achieve gross revenue of at least eighty percent (80%) of Borrowers’ projected gross revenue for each one-month period ending February 28, 2022 and March 31, 2022, as applicable.

 

Lender shall test Borrowers’ compliance with the minimum gross revenue covenant set forth in clause (b) of this Section 6.7 monthly, commencing as of November 30, 2021 and continuing as of the last day of each month thereafter, in each case with respect to the applicable measurement period ending on each such testing date as set forth in Section 6.7(b).”

 

4.    Amendment of Compliance Certificate Exhibit. Exhibit E to the Loan Agreement is hereby amended and restated to read in full as set forth on Exhibit E to this Amendment.

 

5.    Projections Attachment. Borrowers’ cash flow projections for the months of November 2021 through October 2022 are attached to this Amendment as Attachment 1.

 

6.   Amendment and Waiver Fee. In consideration of Lender’s agreement to enter into this Amendment and to provide Borrowers the accommodations contemplated hereunder, Borrowers shall pay to Lender, on the date hereof, a one-time fee in the amount of $70,000 (the “Amendment Fee”). Each Borrower acknowledges and agrees that the Amendment Fee shall be fully earned and non-refundable when due and that Lender may affect payment of the Amendment Fee by charging the full amount thereof to any deposit account maintained by any Borrower with Lender.

 

7.    Condition Precedent. The effectiveness of this Amendment shall be subject to the prior satisfaction of each of the following conditions:

 

(a)    Lender shall have received this Amendment, duly executed by each Borrower;

 

(b)    Lender shall have received the Amendment Fee; and

 

(c)    Lender shall have received such other documents and completion of such other matters as Lender may reasonably deem necessary or appropriate.

 

8.    Miscellaneous.

 

(a)    Survival of Representations and Warranties. All representations and warranties made in the Loan Agreement or in any other Loan Document shall survive the execution and delivery of this Amendment.

 

2

 

 

(b)   References to the Loan Agreement. The Loan Agreement, each of the other Loan Documents, and any and all other agreements, documents or instruments now or hereafter executed and delivered pursuant to the terms hereof, or pursuant to the terms of the Loan Agreement as amended hereby, are hereby amended so that any reference therein to the Loan Agreement shall mean a reference to the Loan Agreement as amended by this Amendment.

 

(c)    Loan Agreement Remains in Effect. The Loan Agreement and the other Loan Documents remain in full force and effect, and each Borrower hereby ratifies and confirms its agreements and covenants contained therein. Each Borrower hereby confirms that, after giving effect to this Amendment, no default or Event of Default shall have occurred and be continuing.

 

(d)    Severability. Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.

 

(e)    Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of California applied to contracts to be performed wholly within the State of California.

 

(f)    Counterparts. This Amendment may be executed in two or more counterparts, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same instrument. If any signature to this Amendment is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing this Amendment (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original hereof.

 

(g)    Headings. The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.

 

(h)    Expenses of Lender. Borrowers jointly and severally agree to pay on demand all costs and expenses reasonably incurred by Lender in connection with the preparation, negotiation and execution of this Amendment, including, without limitation, the reasonable fees and expenses of Lender’s legal counsel.

 

(i)    NO ORAL AGREEMENTS. THIS AMENDMENT REPRESENTS THE FINAL AGREEMENT AMONG THE PARTIES HERETO WITH REGARD TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES HERETO.

 

[Remainder of page intentionally left blank. Signature page(s) follow(s).]

 

3

 

 

IN WITNESS WHEREOF, the parties hereto have entered into this Amendment by their respective duly authorized officers as of the date first above written.

 

	 	
			BORROWERS:

			 

			ENSERVCO CORPORATION,

			a Delaware corporation

			 

			 

			By:         /s/ Marjorie Hargrave                           

			Name:  Marjorie Hargrave                                    

			Title:           Chief Financial Officer                    

			 

			 

			DILLCO FLUID SERVICE, INC.,

			a Kansas corporation

			 

			 

			By:         /s/ Marjorie Hargrave                          

			Name:         Marjorie Hargrave                           

			Title:           Chief Financial Officer                   

			 

			 

			HEAT WAVES HOT OIL SERVICES LLC,

			a Colorado limited liability company

			 

			 

			By:         /s/ Marjorie Hargrave                           

			Name:         Marjorie Hargrave                           

			Title:           Chief Financial Officer                    

			 

			 

			HEAT WAVES WATER MANAGEMENT, LLC,

			a Colorado limited liability company

			 

			 

			By:         /s/ Marjorie Hargrave                           

			Name:         Marjorie Hargrave                           

			Title:           Chief Financial Officer                    

			 

			 

			ADLER HOT OIL SERVICE, LLC,

			a Delaware limited liability company

			

			

			By:         /s/ Marjorie Hargrave                           

			Name:         Marjorie Hargrave                            

			Title:           Chief Financial Officer                    

			

 

 

 

Eighth Amendment to Loan and Security Agreement and Waiver

 

 

 

	 	
			LENDER:

			 

			EAST WEST BANK,

			a California banking corporation

			 

			 

			By:    /s/ Stuart Bonomo                                     

			         Stuart Bonomo

			         Senior Vice President

			

 

 

 

 

Eighth Amendment to Loan and Security Agreement and Waiver

 

 

 

Exhibit(s) to this Exhibit have been intentionally omitted pursuant to Section 601(a)(5) of Regulation SK.

 

 

 

Eighth Amendment to Loan and Security Agreement and Waiver

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