Document:

TWELFTH
AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT,

TERM LOAN AND SECURITY AGREEMENT

 

THIS
TWELFTH AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT, TERM LOAN AND SECURITY AGREEMENT, dated as of June 20, 2019 (this
“Amendment”), relating to the Credit Agreement referenced below, is by and among PERMA-FIX ENVIRONMENTAL SERVICES,
INC., a Delaware corporation (the “Borrower”), the lenders identified on the signature pages hereto (the “Lenders”),
and PNC Bank, National Association, a national banking association, as agent for the Lenders (in such capacity, the “Agent”).
Terms used herein but not otherwise defined herein shall have the meanings provided to such terms in the Credit Agreement.

 

W
I T N E S S E T H

 

WHEREAS,
a credit facility has been extended to the Borrower pursuant to the terms of that certain Amended and Restated Revolving Credit,
Term Loan and Security Agreement dated as of October 31, 2011 (as amended and modified from time to time, the “Credit
Agreement”) among the Borrower, the Lenders identified therein, and PNC Bank, National Association, as agent for the
Lenders;

 

WHEREAS,
the Borrower has requested certain modifications to the Credit Agreement; and

 

WHEREAS,
the Required Lenders have agreed to the requested modifications on the terms and conditions set forth herein;

 

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

 

1.
Amendments. The Credit Agreement is amended as set forth below:

 

(a)
New definitions of “Adjusted EBITDA” and “Twelfth Amendment” are added to Section 1.2 in
correct alphabetical order to read as follows:

 

“
“Adjusted EBITDA” shall mean EBITDA plus add-backs for discontinued operations and for Agent’s $50,000
amendment fee charged in connection with the Twelfth Amendment.

 

“Twelfth
Amendment” shall mean the Twelfth Amendment to Amended and Restated Revolving Credit, Term Loan and Security Agreement
dated as of June 20, 2019.”

 

    	 	 	 

    	 

    

 

(b)
The definition of “EBITDA” set forth in Section 1.2 is amended to read as follows:

 

“
“EBITDA” shall mean for any period, for Borrower, the sum of (i) Net Income for such period, plus (ii) all
Interest Expense for such period, plus (iii) all charges against income of Borrower for such period for federal, state and local
taxes expenses, plus (iv) depreciation expenses for such period, plus (v) amortization expenses for such period, plus (vi) any
extraordinary, unusual or non-recurring non-cash expenses or losses (including non-cash losses on sales of assets outside of the
Ordinary Course of Business) during such period, minus (vii) any extraordinary, unusual or non-recurring non-cash income or gains
(including gains on the sale of assets outside of the Ordinary Course of Business) during such period, in each case, only to the
extent included in the statement of net income for such period. For purposes of calculating EBITDA an add-back for Agent’s
$50,000 amendment fee charged in connection with the Twelfth Amendment will be permitted.”

 

(c)
A new Section 1.5 is added to read as follows:

 

“1.5.
Eurodollar Notification.

 

Section
3.8.2. of this Agreement provides a mechanism for determining an alternate rate of interest in the event that the London interbank
offered rate is no longer available or in certain other circumstances. Agent does not warrant or accept any responsibility for
and shall not have any liability with respect to, the administration, submission or any other matter related to the London interbank
offered rate or other rates in the definition of “Eurodollar Rate” or with respect to any alternative or successor
rate thereto, or replacement rate therefor.”

 

(d)
Section 2.1(a)(y)(a)(iii) is amended to read as follows:

 

“(iii)
a $550,000 availability block established from a portion of the South Georgia Insurance Proceeds which availability block will
be reduced to $250,000 if Borrower (A) is in compliance with the Minimum Adjusted EBITDA covenant for the quarter ending as of
September 30, 2019 and (B) has received no less than $4,000,000 from the Release of Restricted Insurance Closure Fund net of any
required collateral increases to the closure coverage for the Richland, Washington facility, and will be further reduced to zero
if Borrower is in compliance with the Minimum Adjusted EBITDA covenant for the quarter ending as of December 31, 2019, minus”.

 

    	 	2	 

    	 

    

 

(e)
Section 2.4(a) is amended to read as follows:

 

“Subject
to the terms and conditions of this Agreement, each Lender, severally and not jointly, will make a Term Loan to Borrower in the
sum equal to such Lender’s Commitment Percentage of $6,095,238.12. The Term Loan was advanced on the Closing Date and shall
be, with respect to principal, payable as follows, subject to acceleration upon the occurrence of an Event of Default under this
Agreement or termination of this Agreement: equal monthly installments of $101,600 commencing on April 1, 2016 through June 1,
2019 and thereafter equal monthly installments of $35,547.30 commencing on July 1, 2019 and continuing on the first (1st) day
of each month thereafter with the remaining balance due in full on the last day of the Term. The Term Loan shall be evidenced
by one or more secured promissory notes (collectively, the “Term Note”) in substantially the form attached hereto
as Exhibit 2.4(a). The Term Loan may consist of Domestic Rate Loans or Eurodollar Rate Loans, or a combination thereof, as Borrower
may request. In the event that Borrower desires to obtain or extend a Eurodollar Rate Loan or to convert a Domestic Rate Loan
to a Eurodollar Rate Loan, Borrower shall comply with the notification requirements set forth in Sections 2.2(b) and (d) and the
provisions of Sections 2.2(b) through (h) shall apply.”

 

(f)
The last sentence of Section 4.15(h) is amended to read as follows:

 

“Notwithstanding
the foregoing, a deposit account control agreement is not required for a Canadian account of any Credit Party provided that any
amount in excess of $500,000 in any such account must be used to pay down Revolving Advances within twenty (20) days.”

 

(g)
Section 6.5 is amended to read as follows:

 

“6.5.
Financial Covenants.

 

(a)
Tangible Adjusted Net Worth.

 

Maintain
at all times a Tangible Adjusted Net Worth in an amount not less than $25,000,000.

 

(b)
Minimum Adjusted EBITDA.

 

Cause
to be maintained a minimum Adjusted EBITDA of at least (i) $475,000 for the one quarter period ending as of June 30, 2019; (ii)
$2,350,000 for the two quarter period ending as of September 30, 2019; and (iii) $3,750,000 for the three quarter period ending
as of December 31, 2019.

 

    	 	3	 

    	 

    

 

(c)
Fixed Charge Coverage Ratio.

 

Cause
to be maintained a Fixed Charge Coverage Ratio of not less than 1.15 to 1.0 for the four quarter period ending as of March 31,
2020 and for each fiscal quarter thereafter.”

 

(h)
Exhibit 1.2(a) is deleted in its entirety and replaced with a new Exhibit 1.2(a) attached hereto and incorporated herein by reference.

 

2.
No Eurodollar Rate Loans. The Borrower shall not have the option to elect any Eurodollar Rate Loans until it is in compliance
with the Fixed Charge Coverage Ratio as confirmed by the Agent.

 

3.
Conditions Precedent. This Amendment shall be effective as of the date hereof upon satisfaction of each of the following
conditions precedent:

 

(a)
the execution of this Amendment by the Borrower, the Required Lenders and the Agent; and

 

(b)
receipt by the Agent of an amendment fee of $50,000.

 

4.
Representations and Warranties. The Borrower hereby represents and warrants in connection herewith that as of the date
hereof (after giving effect hereto) (i) the representations and warranties set forth in Article V of the Credit Agreement are
true and correct in all material respects (except those which expressly relate to an earlier date), and (ii) no Default or Event
of Default has occurred and is continuing under the Credit Agreement.

 

5.
Acknowledgments, Affirmations and Agreements. The Borrower (i) acknowledges and consents to all of the terms and conditions
of this Amendment and (ii) affirms all of its obligations under the Credit Agreement and the Other Documents.

 

6.
Credit Agreement. Except as expressly modified hereby, all of the terms and provisions of the Credit Agreement remain in
full force and effect.

 

7.
Expenses. The Borrower agrees to pay all reasonable costs and expenses in connection with the preparation, execution and
delivery of this Amendment, including the reasonable fees and expenses of the Agent’s legal counsel.

 

8.
Counterparts. This Amendment may be executed in any number of counterparts, each of which when so executed and delivered
shall be deemed an original. It shall not be necessary in making proof of this Amendment to produce or account for more than one
such counterpart.

 

9.
Governing Law. This Amendment shall be deemed to be a contract under, and shall for all purposes be construed in accordance
with, the laws of the State of New York.

 

    	 	4	 

    	 

    

 

IN
WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of
the date first above written.

 

	BORROWER:	PERMA-FIX
ENVIRONMENTAL SERVICES, INC.

	 	 	 
	 	By:	/s/ Ben Naccarato
	 	Name:	Ben Naccarato
	 	Title:	CFO

 

	AGENT AND LENDER:	PNC BANK, NATIONAL ASSOCIATION,

in
its capacity as Agent and as Lender

	 	 	 
	 	By:	/s/
    Scott Goldstein
	 	Name:	Scott Goldstein
	 	Title:	Senior Vice President

 

    	 	 	 

    	 

    

 

Exhibit
1.2(a)

 

[Letterhead
of Company]

 

COMPLIANCE
CERTIFICATE __________________, 20__

 

PNC
Bank, National Association, as Agent

One
Piedmont Town Center

4720
Piedmont Row Drive

Suite
300

Charlotte,
NC 28210

Attention:
Scott Goldstein

 

The
undersigned, the [Chief Executive Officer][President][Chief Financial Officer][Controller] of Perma-Fix Environmental
Services, Inc., a Delaware corporation, gives this certificate to PNC Bank, National Association, as Agent (in such
capacity, the “Agent”), in accordance with the requirements of Section 9.7 and 9.8 (Annual and Quarterly Financial
Statements) of that certain Revolving Credit, Term Loan and Security Agreement dated as of October 31, 2011, among the Borrower,
the financial institutions which are parties thereto as Lenders, and the Agent (the “Loan Agreement”).

 

Capitalized
terms used in this Certificate, unless otherwise defined herein, shall have the meanings ascribed to them in the Loan Agreement.

 

	 	1.	Based
    upon my review of the financial statements of the Company for the [Fiscal Year/Quarter] ending __________________, 20__, copies
    of which are attached hereto, I hereby certify that:

 

	 	(a)	Section
    6.5(a), the Tangible Adjusted Net Worth is [satisfied / not satisfied] at $__________ when compared to the required amount
    of at least $25,000,000.	 
	 	 	 	 
	 	(b)	Section
    6.5(b), the Minimum Adjusted EBITDA is [satisfied / not satisfied] at $________ when compared to the required (i) $475,000
    for the one quarter period ending as of June 30, 2019; (ii) $2,350,000 for the two quarter period ending as of September 30,
    2019; and (iii) $3,750,000 for the three quarter period ending as of December 31, 2019.	 
	 	 	 	 
	 	(c)	Section
    6.5(c), the Fixed Charge Coverage Ratio is [satisfied / not satisfied] at _____ to 1.0 when compared to the required 1.15
    to 1.0 for the four quarter period ending as of March 31, 2020 and as of the end of each fiscal quarter thereafter.	 
	 	 	 	 
	 	(d)	Sections
    7.4, Investments are [satisfied/not satisfied] as there are $xx,xxx (if none, so state) outstanding.	 
	 	 	 	 
	 	(e)	Sections
    7.5(a), Loans are [satisfied/not satisfied] as no advances, loans or extensions of credit have been made except for extensions
    of trade credit in connection with the sale of Inventory in the Ordinary Course of Business and Section 7.5(b), Loans to employees
    in the Ordinary Course of Business in the amount of $xx,xxx (if none, so state) are [less/more] than the allowable amount
    of $1,000,000 in the aggregate.	 

 

    	 	 	 

    	 

    

 

	 	(f)	Sections
    7.6, Capital Expenditures are [satisfied/not satisfied] as $xx,xxx is [less/more] than the allowable amount of $3,000,000
    for any fiscal year.	 
	 	 	 	 
	 	(g)	Sections
    7.7, Dividends and Distributions are [satisfied/not satisfied] as the payment of all dividends and distributions comply with
    the provisions of Section 7.7.	 
	 	 	 	 
	 	(h)	Sections
    7.8, Create additional Indebtedness is [satisfied/not satisfied] as such additional Indebtedness complies with the provisions
    of Section 7.8.	 
	 	 	 	 
	 	(i)	Sections
    7.11, Leases are [satisfied/not satisfied] as $xx,xxx is [less/ more] when compared to the annual rental payments for
    all property of $1,000,000.	 

 

	 	2.	No
    Default exists on the date hereof, other than: _______________[if none, so state]; and
	 	 	 
	 	3.	No
    Event of Default exists on the date hereof, other than _____________ [if none, so state].
	 	 	 
	 	4.	As
    of the date hereof, if applicable, Borrower is current in all material respects in payment of all accrued rent, warehouse
    fees, and other charges to Persons who own or lease any premises where any of the Collateral is located, and there are no
    pending disputes or claims regarding Borrowers’ failure to pay or delay in payment of any such rent or other charges.
	 	 	 
	 	5.	Additionally,
    as of the date hereof, as required by Section 9.3, to the best of my knowledge, Borrower is in compliance in all material
    respects with all federal, state and local laws relating to environmental protection and control and occupational safety and
    health, or if such is not the case, specifying in all areas of material non-compliance of which such officer has actual knowledge
    and the proposed action Borrower will implement in order to achieve compliance in all material respects unless full compliance
    is otherwise required.
	 	 	 
	 	6.	The
    financial statements attached hereto are complete and accurate in all respects and were prepared in accordance with GAAP,
    consistently applied, except for the absence of footnotes and subject to year end audit adjustments, and except as may be
    disclosed in such financial statements.

 

	 	PERMA-FIX
    ENVIRONMENTAL SERVICES, INC.
	 	 
	 	_________________
    as [Chief Executive Officer] [President] [Chief Financial Officer] [Controller]
	 	
	 	Dated
    ______________

 

    	 	2	 

    	 

    

 

SpreadsheetExhibit

Exhibit 10.1

May __, 2019

Sears Hometown and Outlet Stores, Inc.
5500 Trillium Boulevard, Suite 501
Hoffman Estates, Illinois 60192

Retention Agreement

Dear _____________:

Sears Hometown and Outlet Stores, Inc. (including any successor thereto, by way of merger or otherwise, the “Company,” “we,” “our,” or “us”), in recognition of the present uncertainty regarding the future of the Company and the possibility of a sale of all or a portion of the Company’s business, is pleased to offer you a special retention incentive, on the terms and conditions of this letter agreement, to which we and you agree.

1.Minimum Guaranteed 2019 AIP Payment. Provided that you remain continuously employed by the Company through the earlier of (i) April 15, 2020 or (b) one of the Acceleration Events described in paragraph 2 below, your payment with respect to the Company’s 2019 AIP shall not be less than 50% of your percentage incentive opportunity under the 2019 AIP (the “Guaranteed Bonus”).  If you remain continuously employed by the Company through April 15, 2020 (and no Acceleration Event has occurred with respect to you before that date) you shall be entitled to payment of the greater of the Guaranteed Bonus and the amount determined pursuant to the terms of the 2019 AIP.

2.Acceleration Events. Notwithstanding paragraph 2 above, the Guaranteed Bonus shall be paid to you in full on an accelerated basis on or as soon as practicable following the earliest to occur of the following (each an “Acceleration Event”) provided that you remain continuously employed by the Company until the applicable Acceleration Event:

a.the sale of all or substantially all the assets of the Company as of the date hereof;

b.any person or group becomes a “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the Company representing more than 50% of the combined voting power of the Company’s then outstanding securities eligible to vote for the election of the Company’s Board of Directors; provided, however; that in the case of any person or group that includes any of ESL Partners, L.P., RBS Partners, L.P., ESL Investments, Inc., Transform Holdco LLC, Edward S. Lampert, or any of their respective affiliates, “50%” shall be replaced by 90%;

c.the consummation of a reorganization, merger, consolidation, statutory share exchange or similar form of corporate transaction involving the Company (a “Reorganization”), unless immediately following the Reorganization: (A) more than 50% of the combined voting power of (x) the corporation resulting from the Reorganization (the “Surviving Corporation”) or (y) if applicable, the ultimate parent corporation that directly or indirectly has beneficial ownership of 100% of the voting securities eligible to elect directors of the Surviving Corporation, is represented by the voting securities of the Company that were outstanding immediately prior to the Reorganization (or, if applicable, is represented by shares into which such voting securities of the Company were converted pursuant to the Reorganization), and such voting power among the holders thereof is in substantially the same proportion as the voting power of the voting securities of the Company among the holders thereof immediately prior to the Reorganization;

d.the sale by the Company of all or substantially all of the assets of the business segment of the Company (either Hometown or Outlet) in which you currently are employed;

e.a termination of your employment by the Company without Cause or by you for Good Reason (as such terms are defined below) following the sale of all or substantially all of the assets of either Hometown or Outlet.

3.Definitions. As used herein, (a) “Cause” means (i) a material breach by you (other than a breach resulting from your incapacity due to a disability as determined by the Company) of your duties and responsibilities, which breach is demonstrably willful and deliberate on the your part, is committed in bad faith or without reasonable belief that such breach is in the best interests of the Company, and is not remedied by you in a reasonable period of time after receipt of written notice from the Company specifying the breach, (ii) the commission by you of a felony involving moral turpitude, or (iii) your dishonesty or willful misconduct in connection with your employment with the Company, and (b) “Good Reason” means that, without your written consent, your annual base salary in effect on the date of this agreement is reduced by 10% or more, or your place of employment is relocated by the Company to a business location that is more than 50 miles from your place of employment as of the date hereof.

4.Withholding. The Company shall withhold all applicable federal, state, or local taxes of any kind (including your FICA obligation) from the Guaranteed Bonus.  

5.At Will Employment. Your employment with the Company and its wholly owned subsidiaries remains at-will, meaning that you and the Company may terminate the employment at any time, with or without Cause, and with or without notice to you. Neither this letter agreement nor the Guaranteed Bonus has any effect on the at-will nature of your employment.

6.Entire Agreement. This letter agreement contains all of the agreements, understandings, and representations between the Company and you relating to the subject matter of this letter agreement.  This letter agreement supersedes all prior and contemporaneous written and oral understandings, discussions, agreements, representations, and warranties with respect to the subject matter.

7.Amendment; Governing Law. This letter agreement may not be amended or modified except in writing signed by the Company and you.  This letter agreement, for all purposes, will be construed in accordance with the laws of Illinois without regard to conflicts-of-law principles.

8.Section 409A. This letter agreement is intended to comply with, or be exempt from, Section 409A of the Internal Revenue Code of 1986, as amended, and will be construed and administered in accordance with Section 409A.

You are a valuable member of our team and we look forward to your continued employment with us during this difficult period.

	
		
	 
	Very truly yours,

SEARS HOMETOWN AND OUTLET STORES, INC.

By: ___________________
Philip Etter
Vice President, Human Resources

	Agreed to and accepted:

__________________________[NAME]

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