Document:

bwen_Ex10-1

		
			EXHIBIT 10.1
		

		
			EIGHTH AMENDMENT TO LOAN AND SECURITY AGREEMENT AND WAIVER
		

		
			 
		

		
			This EIGHTH AMENDMENT TO LOAN AND SECURITY AGREEMENT AND WAIVER (this “Amendment”) is entered into as of October 16, 2015, among BROADWIND ENERGY, INC., a Delaware corporation (“Parent”), BRAD FOOTE GEAR WORKS, INC., an Illinois corporation (“Brad Foote”), BROADWIND SERVICES, LLC, a Delaware limited liability company (“Broadwind Services”), BROADWIND TOWERS, INC., a Wisconsin corporation (“Broadwind Towers” and, together with Parent, Brad Foote and Broadwind Services, each a “Borrower” and collectively the “Borrowers”), 1309 South Cicero Avenue, LLC, a Delaware limited liability company (“South Cicero”), 5100 Neville Road, LLC, a Delaware limited liability company (“Neville” and, together with South Cicero, each a “Guarantor” and collectively the “Guarantors”), and ALOSTAR BANK OF COMMERCE, a state banking institution incorporated or otherwise organized under the laws of the State of Alabama (the “Lender”).
		

		
			W I T N E S S E T H:
		

		
			WHEREAS, the Borrowers and the Lender are parties to that certain Loan and Security Agreement dated August 23, 2012 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”; capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the Loan Agreement), pursuant to which the Lender has agreed to make the Commitments available to the Borrowers from time to time pursuant to the terms and conditions thereof;
		

		
			WHEREAS, the Borrowers have requested that the Lender waive for the six consecutive calendar month period ending September 30, 2015, the requirements that the Borrowers achieve (a) EBITDA of $7,800,000 and  (b) a Fixed Charge Coverage Ratio of not less than 1.20 to 1.00, in each case, as required by Section 8.9 of the Loan Agreement (the “September 2015 Covenants”)  and  (b) agree to amend certain terms and conditions of the Loan Agreement; and 
		

		
			WHEREAS, subject to the satisfaction of the conditions set forth herein, the Lender is willing to (a) waive the September 2015 Covenants and (b) amend the Loan Agreement as set forth herein.
		

		
			NOW THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
		

			
	
			
				 1.
			Amendments to the Loan Agreement.  Subject to the satisfaction of the conditions to effectiveness referred to in Section 4 hereof, the Loan Agreement is hereby amended as follows:

		
			Clause (a) of Item 16 (Financial Covenants) of the Terms Schedule is hereby amended and restated in its entirety as follows:
		

		
			“(a)Fixed Charge Coverage Ratio.  At the end of each fiscal quarter, commencing with the fiscal quarter ending March 31, 2016, Parent shall have a Fixed Charge Coverage Ratio for the twelve consecutive calendar month period ending at such fiscal quarter end of not less than a ratio to be agreed based upon the Borrowers’ projected operating performance during such twelve consecutive calendar month period.”
		

		
			Clause (b) of Item 16 (Financial Covenants) of the Terms Schedule is hereby amended and restated in its entirety as follows:
		

		
			“(b)Minimum Monthly EBITDA. Parent shall achieve EBITDA of at least (i) $2,400,000 during the nine consecutive calendar month period ending December 31, 2015 and (ii) an amount to be agreed based upon a discount of the Borrowers’ projected operating performance during each subsequent twelve consecutive calendar month period ending at each fiscal quarter end thereafter.” 
		

		 

 

			
	
			
				 2.
			Waiver.  Subject to the satisfaction of the conditions to effectiveness referred to in Section 4 hereof, notwithstanding anything to the contrary contained in the Loan Agreement or the other Loan Documents, the Lender hereby waives the September 2015 Covenants and such waiver shall be deemed effective as of September 30, 2015. 

			
	
			
				 3.
			No Other Amendments.  The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Lender under the Loan Agreement or any of the other Loan Documents, nor constitute a waiver of any provision of the Loan Agreement or any of the other Loan Documents.  Except for the amendment set forth above, the text of the Loan Agreement and all other Loan Documents shall remain unchanged and in full force and effect and each Borrower and each Guarantor hereby ratifies and confirms its obligations thereunder.  This Amendment shall not constitute a modification of the Loan Agreement or any of the other Loan Documents or a course of dealing with the Lender at variance with the Loan Agreement or the other Loan Documents such as to require further notice by the Lender to require strict compliance with the terms of the Loan Agreement and the other Loan Documents in the future, except as expressly set forth herein.  Each Borrower and each Guarantor acknowledges and expressly agrees that the Lender reserves the right to, and does in fact, require strict compliance with all terms and provisions of the Loan Agreement and the other Loan Documents, as amended herein.  No Borrower or Guarantor has knowledge of any challenge to the Lender’s claims arising under the Loan Documents, or to the effectiveness of the Loan Documents.

			
	
			
				 4.
			Conditions Precedent to Effectiveness.  This Amendment shall be effective as of the date first written above upon the satisfaction of each of the following conditions precedent in a manner acceptable to the Lender in its sole and absolute discretion:

		
			the Lender shall have received this Amendment, duly executed by each Borrower and each Guarantor, and the same shall be in full force and effect; 
		

		
			the Lender shall have received an amendment fee equal to $10,000; and
		

		
			after giving effect to the waiver set forth herein, no Default or Event of Default shall exist under the Loan Agreement or the other Loan Documents.
		

			
	
			
				 5.
			Counterparts.  This Amendment may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which, taken together, shall constitute one and the same agreement.  In proving this Amendment in any judicial proceedings, it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom such enforcement is sought. Any signatures delivered by a party by facsimile transmission or by electronic mail transmission shall be deemed an original signature hereto.

			
	
			
				 6.
			Reference to and Effect on the Loan Documents.  Upon the effectiveness of this Amendment, on and after the date hereof, each reference in the Loan Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Loan Agreement, and each reference in the other Loan Documents to “the Loan Agreement”, “thereunder”, “thereof” or words of like import referring to the Loan Agreement, shall mean and be a reference to the Loan Agreement as amended hereby.

			
	
			
				 7.
			Entire Agreement.  This Amendment and the other Loan Documents constitute the entire agreement and understanding between the parties hereto with respect to the transactions contemplated hereby and thereby and supersede all prior negotiations, understandings and agreements between such parties with respect to such transactions.

			
	
			
				 8.
			GOVERNING LAW.  THE VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK.

			
	
			
				 9.
			Loan Document.  This Amendment shall be deemed to be a Loan Document for all purposes.

		
			[remainder of page intentionally left blank]
		

		
			 
		

		
			

		 

 

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the day and year first written above.
		

		
			BORROWERS:BROADWIND ENERGY, INC. 
		

		
			By: /s/ Stephanie K. Kushner
		

		
			Name:  Stephanie K. Kushner
		

		
			Title:    Executive Vice President and CFO
		

		
			 
		

		
			BRAD FOOTE GEAR WORKS, INC. 
		

		
			By: /s/ Stephanie K. Kushner
		

		
			Name:  Stephanie K. Kushner
		

		
			Title:    Authorized Signatory
		

		
			
		

		
			BROADWIND SERVICES, LLC 
		

		
			By: /s/ Stephanie K. Kushner
		

		
			Name:  Stephanie K. Kushner
		

		
			Title:    Authorized Signatory
		

		
			
		

		
			BROADWIND TOWERS, INC.
		

		
			By: /s/ Stephanie K. Kushner
		

		
			Name:  Stephanie K. Kushner
		

		
			Title:    Authorized Signatory
		

		
			 
		

		
			GUARANTORS:1309 SOUTH CICERO AVENUE, LLC 
		

		
			By: /s/ Stephanie K. Kushner
		

		
			Name:  Stephanie K. Kushner
		

		
			Title:    Authorized Signatory
		

		
			
		

		
			5100 NEVILLE ROAD, LLC
		

		
			By: /s/ Stephanie K. Kushner 
		

		
			Name:  Stephanie K. Kushner
		

		
			Title:    Authorized Signatory
		

		
			

		 

 

LENDER:ALOSTAR BANK OF COMMERCE 
		

		
			By: /s/ Megan E. Enlow
		

		
			Name:  Megan E. Enlow
		

		
			Title:    DirectorExhibit

Exhibit 10.1

SUNPOWER CORPORATION
 
OUTSIDE DIRECTOR

Compensation Policy

Effective August 6, 2009; amended December 11, 2009; amended April 
1, 2010; amended May 3, 2011; amended June 15, 2011; amended July 
22, 2015

1.    General. This Outside Director Compensation Policy (the “Policy”), which is adopted by the Board of Directors (the “Board”) of SunPower Corporation, a Delaware corporation (the “Company”), sets forth the cash and equity-based compensation that shall be payable to eligible non- employee members of the Board who are not nominated representatives of Total S.A. or its corporate affiliates (“Outside Directors”) commencing with the fiscal quarter ending September 27, 2015. This Policy is intended to replace and supersede in its entirety the compensation program applicable to Outside Directors that is in effect as of the effective date of this Policy, including, without limitation, the (i) cash compensation in effect as of the date hereof and (ii) the automatic equity-based awards that would otherwise in the future be granted to Outside Directors pursuant to Section 4(b) of the Second Amended and Restated SunPower Corporation 2005 Stock Incentive Plan, as amended from time to time (the “Stock Plan”).  On June 3, 2015, the Stock Plan was superseded and replaced in its entirety by the SunPower Corporation 2015 Omnibus Plan (the “Omnibus Plan”).  The cash and equity-based compensation described in this Policy shall be paid or be made, as applicable, automatically and without further action of the Board, to each Outside Director who may be eligible to receive such compensation. This Policy shall remain in effect until it is revised or rescinded by further action of the Board. The equity-based compensation shall consist of Restricted Stock Units (as defined in the Omnibus Plan), which shall be settled upon vesting in shares of Common Stock of the Company, par value $0.001 per share (the “Common Stock”), that are granted pursuant to and subject to the provisions of the Omnibus Plan.

2.    Annual Fees. Each Outside Director shall be eligible to receive an annual fee, payable on a quarterly basis as set forth below, for services performed for the Board in accordance with the following provisions (the “Annual Fees”):

(i) Outside Directors. Each Outside Director (other than Chairs of Board committees) shall be eligible to receive an Annual Fee for the Company's fiscal year equal to $400,000 for service on the Board.

(ii) Chairs. Each Outside Director who also serves as Chair of one or more Committees of the Board shall be eligible to receive an Annual Fee for the Company's fiscal year equal to $400,000 for service on the Board and for service as a Chair of a Committee. As used in this Policy, “Committee” refers any of the Audit Committee, the Compensation Committee, or the Nominating and Corporate Governance Committee of the Board.

1

(iii) Chairman. The Chairman of the Board, if he or she qualifies as an Outside Director, shall be eligible to receive an Annual Fee for the Company's fiscal year equal to $450,000 for service as the Chairman of the Board and for service, if any, as a Chair of a Committee.

(iv) Lead Director. In addition to any other applicable compensation provided under the foregoing provisions of this Section 2, an Outside Director who also serves as the “lead director” appointed by the Board shall be eligible to receive an Annual Fee for the Company's fiscal year equal to $25,000 for service as the lead director.

Any Outside Director first appointed or elected to the Board shall, upon such appointment or election, be eligible to receive a prorated portion of the applicable Annual Fee based on the number of fiscal quarters (including partial fiscal quarters) that the Outside Director was in service.

Any Outside Director terminating from the Board shall, upon such termination, be eligible to receive a prorated portion of the applicable Annual Fee based on the number of fiscal quarters (including partial fiscal quarters) that the Outside Director was in service. 

3.    Timing of Payment. The Annual Fees shall be paid in the form set forth in Section 4 hereof on a quarterly basis (i) with respect to the cash compensation described in Section 4(i), on or about the date of the quarterly Board meeting of the applicable fiscal quarter with respect to which the Outside Director is serving as a member of the Board and to which the compensation relates, and (ii) with respect to the Restricted Stock Units described in Section 4(ii), on the 11th day of the second month of the applicable fiscal quarter with respect to which the Outside Director is serving as a member of the Board and to which the compensation relates, or, if no publicly traded sale of Common Stock occurred on such date, on the first trading date immediately after such date during which a sale occurred.

4.    Form of Payment of Annual Fees. The Annual Fees set forth in Section 2 hereof shall be paid to the eligible Outside Directors in the form of cash and Awards of Restricted Stock Units in the following percentages:

(i) Cash: Twenty-five percent (25%) of the total Annual Fee payable to each eligible Outside Director other than the Chairman and other than pursuant to Section 2(iv) shall be paid in the form of cash. One-hundred percent (100%) of the Annual Fee payable to the lead director pursuant to Section 2(iv) shall be paid in cash. The cash payment shall be reduced by any taxes or social security contributions due on the income.

(ii) Restricted Stock Units: Seventy-five percent (75%) of the total Annual Fee payable to each eligible Outside Director other than the Chairman and other than pursuant to Section 2(iv) shall be paid in the form of an Award of Restricted Stock Units made under the Omnibus Plan. One-hundred percent 

2

(100%) of the total Annual Fee payable to the Chairman shall be paid in the form of an Award of Restricted Stock Units made under the Omnibus Plan.

(A) The number of Restricted Stock Units subject to the Award that shall be granted for the applicable fiscal quarter shall be calculated by dividing the amount payable for the quarter in the form of Restricted Stock Units by the Fair Market Value of a share of Common Stock, less any taxes or social security contributions due on the income, which may be withheld by the Company. “Fair Market Value” for purposes of this Section 4 shall mean the closing price of the Common Stock on the Nasdaq Global Select Market on the payment date set forth in Section 3, or if no publicly traded sale of Common Stock occurred on such date, the first trading date immediately after such date during which a sale occurred. Any fractional shares resulting from this calculation shall be rounded up to a full share.

(B) The grant date for purpose of the Award of Restricted Stock Units shall be the date of payment.

(C) The Award of Restricted Stock Units shall be fully vested as of the date of grant.

(D) The Restricted Stock Units shall be settled as soon as practicably possible, but in any event within seven (7) days, following the date of grant (vesting date) in the form of shares of Common Stock.

(E) All applicable terms of the Omnibus Plan apply to this Policy as if fully set forth herein, and all Awards of Restricted Stock Units under this Policy are subject in all respects to the terms of the Omnibus Plan.

(F) All share numbers set forth in this Policy shall be adjusted in accordance with the capitalization adjustment provision set forth in Section 11(a) of the Omnibus Plan.

(G) The grant of any Award under this Policy shall be made solely by and subject to the terms set forth in a written Restricted Stock Unit agreement in a form, consistent with the terms of the Omnibus Plan, approved by Board (or the Compensation Committee thereof) and duly executed by an executive officer of the Company.

5.    Policy Subject to Amendment, Modification and Termination. This Policy may be amended, modified or terminated by the Board in the future at its sole discretion, provided that no such action that would materially and adversely impact the rights with respect to Annual Fees payable in the fiscal quarter during which the Outside Director is then performing services shall be effective without the consent of the affected Outside Director.

6.    Effectiveness. This Policy shall become effective as of July 22, 2015.

3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}]]