Document:

Exhibit 10.35

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

This Executive Employment
Agreement (this “Agreement”) is entered into as of March 19, 2019, by and between Helix TCS, Inc., a Delaware
corporation (the “Company”), and Scott Ogur, CFA (the “Executive”).

 

WHEREAS, the Company wishes
to continue to employ Executive as its Chief Financial Officer, and Executive wishes to accept such continued employment, on the
terms set forth in this Agreement;

 

WHEREAS, Executive acknowledges
and agrees that through Executive’s association with the Company as an employee, Executive has acquired and will acquire
a considerable amount of knowledge and goodwill with respect to the business of the Company, which knowledge and goodwill are highly
valuable to the Company and which would be detrimental to the Company if used by Executive to compete with the Company; and

 

WHEREAS, the Company wishes
to protect its investment in its business, employees, customer relationships, and confidential information, by requiring Executive
to abide by certain restrictive covenants regarding confidentiality, non-competition, and non-solicitation, each of which is an
inducement to the Company to enter into this Agreement;

 

NOW, THEREFORE, in consideration
of the foregoing, the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties agree as follows:

 

1. Employment
At Will. Subject to the terms and conditions of this Agreement, the Company employs Executive, and Executive accepts such employment,
upon the terms hereinafter set forth. Executive’s employment pursuant to this Agreement will commence on the Effective Date
and will continue thereafter until terminated by either party. Executive’s employment with the Company is at-will, and either
party can terminate the employment relationship at any time, for any or no cause or reason, and with or without prior notice, subject
to Section 5(b) below.

 

2. Position;
Duties. Executive will serve as the Company’s Chief Financial Officer and Director and will be responsible for all financial
and accounting aspects of the Company. Executive will report solely and directly to, and be subject to the supervision of, the
Company’s Chief Executive Officer (the “CEO”). Executive will perform such services for the Company and
have such powers, responsibilities and authority as are customarily associated with the position of Chief Financial Officer and
will perform such additional duties as may otherwise be reasonably assigned to Executive from time to time by the CEO. Executive
will devote substantially all of Executive’s full business time to the affairs of the Company and to the duties hereunder,
and will perform such duties diligently and to the best of Executive’s ability, in compliance with the Company’s policies
and procedures and the laws and regulations that apply to the Company’s business. Notwithstanding the foregoing, subject
to CEO approval, not to be unreasonably withheld, Executive may serve on civic, corporate or charitable boards or committees and
manage his personal investments, so long as such activities do not materially interfere with the performance of Executive’s responsibilities
in accordance with this Agreement or otherwise violate other terms of this Agreement. The boards the Executive currently serves
on as of the date of this Agreement are approved.

 

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3. Compensation
and Benefits. As compensation for the services to be rendered by Executive under this Agreement, the Company will provide the
following compensation and benefits during Executive’s employment hereunder.

 

(a) Base
Salary. The Company will pay Executive a base salary at an annual rate of one hundred eighty thousand dollars ($180,000) beginning
on January 1, 2019 (the “Base Salary”). The Base Salary will be payable in equal installments in accordance
with the Company’s payroll practices as in effect from time to time. The Base Salary will be reviewed by the CEO from time
to time and may be increased in the sole discretion of the CEO, subject to the rights of the Preferred B shareholders of the Company.
The Base Salary may also be decreased by the CEO in connection with any Company-wide decrease in executive compensation, provided
that in connection with such reduction Executive will not experience a proportional decrease greater than that of any other executive-level
employee.

 

(b) Bonus
Opportunity.

 

(i) Commencing
with the calendar year 2018, Executive will be eligible to receive an annual bonus targeted at fifty percent (50%) of Executive’s
Base Salary (the “Cash Bonus”) plus up to 300,000 stock options, subject to proportional increase if the Company’s
approved stock plan is increased during the year (the “Equity Bonus,” and together with the Cash Bonus, the
“Annual Bonus”), subject to the following provisions of this Section

 

(A) For
calendar year 2018, the Executive will not receive a Cash Bonus but Executive’s eligibility for an Equity Bonus will be contingent
on whether the Company’s total revenue for calendar year 2018, as reported by the Company, exceeds its total revenue for
calendar year 2017 by at least fifty percent (50%). If it does, Executive will receive 300,000 stock options for 2018.

 

(B) For
calendar year 2019, the Executive’s eligibility for an Annual Bonus will be contingent on whether the Company’s total
earnings before interest, taxes, depreciation, and amortization (EBITDA) in calendar year 2019, as reported by the Company, excluding
the effects of any acquisitions after November 9, 2018 (the “Annual Bonus Basis”) is at least ($4,000,000). If the
Annual Bonus Basis is between ($4,000,000) and ($3,000,000), the Executive will receive 25% of the Annual Bonus. If the Annual
Bonus Basis is between ($2,999,999) and ($2,000,000), the Executive will receive 50% of the Annual Bonus. If the Annual Bonus Basis
is between ($1,999,999) and ($1,000,000), the Executive will receive 75% of the Annual Bonus. If the Annual Bonus Basis is higher
than ($1,000,000), the Executive will receive 100% of the Annual Bonus.

 

(C) For
calendar year 2020 and thereafter, Executive’s eligibility to receive an Annual Bonus will be based on the achievement, during
the year in question, of both personal and Company-wide objectives (including those pertaining to organic revenue and EBITDA growth)
established by the Board, or an applicable sub-committee, by January 31st of each calendar year.

 

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(ii) The
Cash Bonus for any given year will be on March 15 in the year immediately following the year for which the Annual Bonus is determined.
Executive must be employed by the Company on the date on which the Cash Bonus is paid in order to receive the Cash Bonus for that
year, however the Company is not permitted to terminate the Executive’s employment for the purpose of avoiding payment of
the Cash Bonus. The CEO will determine whether and to what extent the applicable criteria have been met and the amount of the Cash
Bonus in its discretion, provided that such determination by the Board shall require the consent of the directors appointed by
Rose Capital.

 

(iii) The
Equity Bonus for any given year will be granted on March 15 in the year immediately following the year for which the Annual Bonus
is determined. Executive must be employed by the Company on the date on which the Equity Bonus is granted in order to receive the
Equity Bonus for that year. The Equity Bonus will be granted in the form of stock options under the Company’s 2017 Omnibus
Stock Incentive Plan, as the same may be amended from time to time, and will be memorialized by an option grant agreement to be
entered between Executive and the Company. The exercise prices of any such options will be equal to the fair market value of the
Company’s common stock on the date of grant. The options, if any, will vest over three (3) years in three (3) equal installments
on the first three anniversaries of the date of grant, so long as Executive remains employed by the Company through each such vesting
date, subject to Section 5(b) below. The CEO will determine whether and to what extent the applicable criteria have been met and
the amount of the Equity Bonus in its discretion, provided that such determination by the Board shall require the consent of the
directors appointed by Rose Capital.

 

(c) Change
of Control. In the event of a change of control of the Company whereby greater than 50% of the assets of the Company are sold
to an unrelated party or an equity transaction occurs such that following such transaction the pre-transaction shareholders own
less than 50% of equity of the Company (“Change of Control Transaction”), Company shall make a payment to the
Executive equal to one year of Executive’s prevailing annual salary at such time. This payment shall be made within ten days
of closing the Change of Control Transaction.

 

(d) Vacation.
Executive will be entitled to 20 paid vacation days per year, with no carryover at the end of each calendar year.

 

(e) General
Benefits. Executive will be entitled to such other benefits, and to participate in such benefit plans, as are generally made
available to similarly situated employees of the Company from time to time, subject to Company policy and the terms and conditions
of any applicable benefit plans. Nothing in this Agreement will be deemed to alter the Company’s rights to modify or terminate
any such plans or programs in its sole discretion.

 

(f) Withholdings.
The Company will withhold from any amounts payable under this Agreement such federal, state, and local taxes as the Company
determines are required to be withheld pursuant to applicable law.

 

4. Reimbursement
of Expenses. The Company will reimburse Executive for all reasonable business expenses incurred by Executive in connection
with the performance of Executive’s duties hereunder, subject to Executive’s compliance with the Company’s reimbursement
policies in effect from time to time. Such reimbursements will be made in a timely manner and in accordance with the policies of
the Company.

 

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5. Effect
of Termination. 

 

(a) Generally.
When Executive’s employment with the Company is terminated for any reason, Executive, or his estate, as the case may
be, will be entitled to receive the compensation and benefits earned through the effective date of termination, along with reimbursement
for any unreimbursed business expenses incurred through the date of termination and supported by reasonable substantiation and
documentation in accordance with Company policies. In addition, immediately upon the termination of Executive’s employment
with the Company for any reason, Executive will be deemed to have resigned from all positions as an officer or director of the
Company or any affiliates thereof. However if Executive shall have resigned from the Company other than for Good Reason, Executive
shall have the ability to remain a board member so long as Executive beneficially owns a minimum of 70% of the shares Executive
held on the date of executing this Agreement and such shareholding is at least 5% of the total outstanding voting shares of the
Company. If Executive shall have resigned from the Company for Good Reason, Executive shall have the ability to remain a board
member so long as Executive beneficially owns a minimum of 50% of the shares Executive held on the date of executing this Agreement
and such shareholding is at least 3% of the total outstanding voting shares of the Company. In furtherance of the preceding sentences,
Executive will execute and return to the Company all letters and documents that the Company may reasonably require in order to
evidence such resignation(s), but Executive’s failure to execute and return such documents will not have the effect of delaying
or in any way invalidating the resignation(s) provided for by the preceding sentence.

 

(b) Separation
Benefits upon Certain Terminations. If the Company terminates Executive’s employment without Cause (as defined below)
or if Executive resigns for Good Reason (as defined below), then conditioned upon Executive executing and not revoking a Release
(as defined below) following such termination Executive will be entitled to receive the following “Separation Benefits”:
(i) Executive will be entitled to receive continued payment of Executive’s then-current Base Salary for a period of twelve
(12) months (the “Salary Continuation”), (ii) Executive will be entitled to sell to the Company at the trailing
10 day VWAP sufficient shares owned by Executive (directly or through a holding company) to generate proceeds equal to the difference
between $800,000 and the cumulative amounts received by Executive from all previous sales he has made of Company stock, and (iii)
all outstanding options to purchase common stock of the Company then held by Executive will, to the extent unvested, vest ratably
by month over the ensuing 12 months and any unexercised options shall expire 15 months after termination, and, to the extent such
options are designated as non-statutory stock options, the post-termination exercise period of such options will be extended to
two years after the date of termination (but in no event beyond the original expiration date of the option). The Salary Continuation
will be payable to Executive over time in accordance with the Company’s payroll practices and procedures beginning on the
thirtieth (30th) day following the termination of Executive’s employment with the Company, provided that the first installment
will include all installments that would have been paid if the payments had begun immediately following the date of termination.
Notwithstanding the foregoing, if Executive is entitled to receive the Salary Continuation but violates in any material respects
any provisions of Section 6 or Section 8 hereof after termination of employment, the Company will be entitled to immediately stop
paying any further installments of the Salary Continuation, in addition to any other remedies that may be available to the Company
in law or at equity. Executive agrees that other than with respect to the share sales described in clause 5(b)(ii) above, for a
period of 18 months following termination, he will not sell an amount of shares each day that exceeds 10% of the trailing 10 trading
day average volume) of Helix common stock.

 

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(c) Cause.
 For purposes of this Agreement, “Cause” means: (i) Executive’s fraud, embezzlement, material act
of dishonesty (including, without limitation, the falsification of any material report) or misappropriation with respect to the
Company; (ii) Executive’s willful or negligent misconduct that has or may reasonably be expected to have a material adverse
effect on the property, business, or reputation of the Company; (iii) Executive’s material breach of this Agreement; (iv)
Executive’s willful failure or refusal to perform Executive’s material duties under this Agreement or willful failure
to follow any specific lawful instructions of the CEO; (v) Executive’s conviction or plea of nolo contendere in respect of
a felony or of a misdemeanor involving moral turpitude; (vi) Executive’s alcohol or substance abuse which has a material
adverse effect on Executive’s ability to perform Executive’s duties under this Agreement or the property, business,
or reputation of the Company; (vii) Executive’s breach of fiduciary duty, or (viii) Executive’s material failure to
comply with the Company’s workplace rules, policies, or procedures. In the event that the Company concludes that Executive
has engaged in acts constituting in Cause as defined in clause (iii) or (iv) above, prior to terminating this Agreement for Cause
the Company will provide Executive with at least fifteen (15) days’ advance notice of the circumstances constituting such
Cause, and an opportunity to correct such circumstances, to the extent such circumstances are susceptible of being corrected. In
the event the Company terminates Executive’s employment for Cause, none of the Separation Benefits shall apply.

 

(d) Good
Reason. For purposes of this Agreement, “Good Reason” means the occurrence of any of the following events
without Executive’s consent: (i) a material reduction of Executive’s Base Salary not generally applicable to other
executive-level employees of the Company or in which Executive experiences a proportional decrease greater than that of any other
executive-level employee; (ii) a material diminution of the Executive’s authority, duties, or responsibilities as in effect
on the date hereof; (iii) a requirement that Executive’s primary work location be more than fifty (50) miles from its location
on the date hereof; (iv) any act by the Company, its Board, its shareholders, or any of their affiliates whose actions or language
that attacks Executive’s reputation, disparages Executive, or makes the Executive’s ability to execute his duties more
difficult; or (v) the Company’s material breach of this Agreement. In order for Executive to resign for Good Reason, Executive
must provide written notice to the Company of the existence of the Good Reason condition within thirty (30) days of the initial
existence of such Good Reason condition, and if such written notice is not timely provided, Executive may not resign for Good Reason
as a result of the existence of such Good Reason condition. Upon receipt of such notice, the Company will have fifteen (15) days
during which it may attempt to remedy the Good Reason condition. If so remedied, Executive may not resign for Good Reason on that
basis. If the Good Reason condition is not remedied within such fifteen (15) day period, Executive may resign based on the Good
Reason condition specified in the notice effective ninety (90) days following the expiration of the fifteen (15) day cure period.

 

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If Executive resigns other than for Good
Reason, clause 5(b)(i) shall not apply, however the remaining Separation Benefits shall still apply provided that Executive provides
Company with 90 days’ notice prior to terminating his employment.

 

(e) Application
of Internal Revenue Code Section 409A. The parties intend that this Agreement and the payments made hereunder will be exempt
from, or comply with, the requirements of Section 409A of the Internal Revenue Code and the regulations and other guidance thereunder
and any state law of similar effect (collectively “Section 409A”), and this Agreement will be interpreted and
applied to the greatest extent possible in a manner that is consistent with the requirements for avoiding taxes or penalties under
Section 409A. Notwithstanding anything to the contrary set forth herein, any payments and benefits provided under this Section
5 that constitute “deferred compensation” within the meaning of Section 409A will not commence in connection with Executive’s
termination of employment unless and until Executive has also incurred a “separation from service” (as such term is
defined in Treasury Regulation Section 1.409A-1(h)), unless the Company reasonably determines that such amounts may be provided
to Executive without causing Executive to incur the additional 20% tax under Section 409A. The parties intend that each installment
of the Salary Continuation payments provided for in this Agreement is a separate “payment” for purposes of Section
409A. For the avoidance of doubt, the parties intend that the Separation Benefits satisfy, to the greatest extent possible, the
exemptions from the application of Section 409A provided under Treasury Regulation Sections 1.409A-1(b)(4), 1.409A-1(b)(5), and
1.409A-1(b)(9). However, if the Company determines that the Salary Continuation constitutes “deferred compensation”
under Section 409A and Executive is, as if the separation from service, a “specified employee” of the Company or any
successor entity thereto, as such term is defined in Section 409A, then, solely to the extent necessary to avoid the incurrence
of the adverse personal tax consequences under Section 409A, the timing of the Salary Continuation payments will be delayed until
the earlier to occur of: (i) the date that is six months and one day after Executive’s separation from service, or (ii) the
date of Executive’s death (such applicable date, the “Specified Employee Initial Payment Date”), and the
Company (or the successor entity thereto, as applicable) will (A) pay to Executive a lump sum amount equal to the sum of the Salary
Continuation payments that Executive would otherwise have received through the Specified Employee Initial Payment Date if the commencement
of the payment of the Salary Continuation had not been so delayed pursuant to this Section, and (B) commence paying the balance
of the Salary Continuation in accordance with the applicable payment schedules set forth in this Agreement.

 

(f) No
Further Obligations. Except as expressly provided above or as otherwise required by law, the Company will have no obligations
to Executive in the event of the termination of this Agreement for any reason.

 

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6. Confidential
Information.

 

(a) Executive
acknowledges that the Company will give Executive access to certain highly-sensitive, confidential, and proprietary information
belonging to the Company (or third parties who may have furnished such information under obligations of confidentiality), relating
to and used in the Company’s business (collectively, “Confidential Information”). Executive acknowledges
that Confidential Information includes, but is not limited to, the following categories of Company related confidential or proprietary
information and material: financial statements and information; budgets, forecasts, and projections; business and strategic plans;
marketing, sales, and business development strategies; research and development projects; records relating to any intellectual
property developed by, owned by, controlled, or maintained by the Company; information related to the Company’s inventions,
research, products, designs, methods, formulae, techniques, systems, processes; customer lists; non-public information relating
to the Company’s customers, suppliers, distributors, or investors; the specific terms of the Company’s agreements or
arrangements, whether oral or written, with any customer, supplier, vendor, or contractor with which the Company may be associated
from time to time; and any and all information relating to the operation of the Company’s business which the Company may
from time to time designate as confidential or proprietary or that Executive reasonably knows should be, or has been, treated by
the Company as confidential or proprietary. Confidential Information encompasses all formats in which information is preserved,
whether electronic, print, or any other form, including all originals, copies, notes, or other reproductions or replicas thereof.

 

(b) Confidential
Information does not include any information that: (i) at the time of disclosure is generally known to, or readily ascertainable
by, the public; (ii) becomes known to the public through no fault of Executive or other violation of this Agreement; or (iii) is
disclosed to Executive by a third party under no obligation to maintain the confidentiality of the information.

 

(c) Executive
acknowledges that the Confidential Information is owned or licensed by the Company (or is possessed by the Company with the permission
of its owner); is unique, valuable, proprietary and confidential; derives independent actual or potential commercial value from
not being generally known or available to the public; and is subject to reasonable efforts to maintain its secrecy. Executive hereby
relinquishes, and agrees that Executive will not at any time claim, any right, title or interest of any kind in or to any Confidential
Information.

 

(d) During
and after Executive’s employment with the Company, Executive will hold in trust and confidence all Confidential Information,
and will not disclose any Confidential Information to any person or entity, except in the course of performing duties assigned
by the Company or as authorized in writing by the Company. Executive further agrees that during and after Executive’s employment
with the Company, Executive will not use any Confidential Information for the benefit of any third party, except in the course
of performing duties assigned by the Company or as authorized in writing by the Company.

 

(e) Notwithstanding
the covenants in Section 6(d) above, Executive may disclose Confidential Information solely to the extent that Executive is required
to disclose such information by law, provided that Executive (i) notifies the Company of the existence and terms of such obligation,
(ii) gives the Company a reasonable opportunity to seek a protective or similar order to prevent or limit such disclosure, and
(iii) only discloses that information actually required to be disclosed.

 

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(f) Nothing
in this Agreement is intended to or will prohibit Executive from communicating with any governmental authority, or making a report
in good faith and with a reasonable belief of any violations of law or regulation to a governmental authority, or from filing,
testifying or participating in a legal proceeding relating to such violations, including making disclosures protected or required
by any whistleblower law or regulation to the Securities and Exchange Commission, the Department of Labor, or any other appropriate
government authority charged with the enforcement of any applicable laws. In addition, nothing in this Agreement is intended to
or will limit any employee’s right to discuss the terms, wages, and working conditions of their employment, as protected
by applicable law. Pursuant to the Defend Trade Secrets Act of 2016, an individual will not be held criminally or civilly liable
under any federal or state trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a federal,
state or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting
or investigating a suspected violation of law; or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding,
if such filing is made under seal. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation
of law may disclose the trade secret to his or her attorney and use the trade secret information in the court proceeding, if the
individual files any document containing the trade secret under seal, and does not disclose the trade secret, except pursuant to
court order.

 

(g) Return
of Property. Upon request during employment and immediately at the termination of Executive’s employment, Executive will
return to the Company all Confidential Information in any form (including all copies and reproductions thereof) and all other property
whatsoever of the Company in Executive’s possession or under Executive’s control. If requested by the Company, Executive
will certify in writing that all such materials have been returned to the Company. Executive also expressly agrees that immediately
upon the termination of Executive’s employment with the Company for any reason, Executive will cease using any secure website,
computer systems, e-mail system, or phone system or voicemail service provided by the Company for the use of its employees.

 

7. Assignment
of Inventions.

 

(a) Executive
agrees that all developments or inventions (including without limitation any and all software programs (source and object code),
algorithms and applications, concepts, designs, discoveries, improvements, processes, techniques, know-how and data) initiated,
conceived, discovered, reduced to practice, or made by Executive, either alone or in conjunction with others, during his employment
with the Company that result from work performed by Executive for the Company or relate to the business of the Company, whether
or not patentable or registrable under copyright or similar statutes or subject to analogous protection (“Inventions”),
will be the sole and exclusive property of the Company or its nominees. Executive will and hereby does assign to the Company all
rights in and to such Inventions upon the creation of any such Invention, including, without limitation: (i) patents, patent
applications and patent rights throughout the world; (ii) rights associated with works of authorship throughout the world, including
copyrights, copyright applications, copyright registrations, mask work rights, mask work applications and mask work registrations;
(iii) rights relating to the protection of trade secrets and confidential information throughout the world; (iv) rights analogous
to those set forth herein and any other proprietary rights relating to intangible property; and (v) divisions, continuations, renewals,
reissues and extensions of the foregoing (as applicable), now existing or hereafter filed, issued or acquired (collectively, the
“IP Rights”).

 

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(b) For
avoidance of doubt, if any Invention falls within the definition of “work made for hire” as such term is defined in
17 U.S.C. § 101, such Invention(s) will be considered “work made for hire” and the copyright of such Invention(s)
will be owned solely and exclusively by the Company. If any Invention does not fall within such definition of “work made
for hire” then Executive’s right, title and interest in and to such Invention(s) will be assigned to the Company pursuant
to Section 7(a) above.

 

(c) The
Company and its nominees will have the right to use and/or to apply for statutory or common law protections for such Inventions
in any and all countries. Executive further agrees, at the Company’s expense, to: (i) reasonably assist the Company in obtaining
and from time to time enforcing such IP Rights relating to Inventions, and (ii) execute and deliver to the Company or its nominee
upon reasonable request all such documents as the Company or its nominee may reasonably determine are necessary or appropriate
to effect the purposes of this Section 7, including assignments of inventions. Such documents may be necessary to: (1) vest in
the Company or its nominee clear and marketable title in and to Inventions; (2) apply for, prosecute and obtain patents, copyrights,
mask works rights and other rights and protections relating to Inventions; or (3) enforce patents, copyrights, mask works rights
and other rights and protections relating to Inventions. Executive’s obligations pursuant to this Section 7 will continue
beyond the termination of Executive’s employment with the Company. Executive hereby irrevocably designates and appoints the
Company and its then-current Chief Executive Officer as Executive’s agent and attorney-in-fact to act for and in behalf and
instead of Executive, to execute and file any such application and to do all other lawfully permitted acts to further the prosecution
and issuance of patents, trademarks, copyrights or other rights thereon with the same legal force and effect as if executed by
Executive, if the Company is unable for any reason to secure Executive’s signature to any lawful and necessary document required
to apply for or execute any patent, trademark, copyright or other applications with respect to any Inventions (including renewals,
extensions, continuations, divisions or continuations in part thereof).

 

(d) The
obligations of Executive under Section 7 above will not apply to any Invention that Executive developed entirely on Executive’s
own time without using the Company’s equipment, supplies, facility or trade secret information, except for those Inventions
that (i) relate to the Company’s Business or actual or demonstrably anticipated research or development, or (ii) result from
any work performed by Executive for Company. Executive will bear the burden of proof in establishing the applicability of this
subsection to a particular circumstance.

 

8. Restrictive
Covenants. 

 

(a) Purpose.
Executive understands and agrees that the purpose of this Section 8 is solely to protect the Company’s legitimate business
interests, including, but not limited to its confidential and proprietary information, customer relationships and goodwill, and
the Company’s competitive advantage, and will not unduly impair Executive’s ability or right to work or earn a living.
Therefore, Executive agrees to be subject to restrictive covenants under the following terms.

 

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(b) Definitions.
As used in this Agreement, the following terms have the meanings given to such terms below.

 

(i) “Business”
means (A) providing technology, compliance, and/or security services to businesses in the cannabis industry; and (B) the business(es)
in which the Company was engaged at the time of, or during the twelve (12) month period prior to, the termination of Executive’s
employment with the Company for any reason, provided that this clause (B) will only apply if Executive was materially involved
with such other business.

 

(ii) “Company
Employee” means any person who is or was an employee or consultant of the Company at the time of, or during the twelve
(12) month period prior to, the termination of Executive’s employment with the Company for any reason.

 

(iii) “Customer”
means any person or entity who is or was a customer of the Company at the time of, or during the twelve (12) month period prior
to, the termination of Executive’s employment with the Company for any reason and with whom Executive had dealings on behalf
of the Company in the course of Executive’s employment with the Company during such period, or about whom Executive received
Confidential Information.

 

(iv) “Prospective
Customer” means any person or entity to whom, within the three (3) months immediately prior to the termination of Executive’s
employment with the Company for any reason the Company had submitted proposals to for services of which Executive has knowledge,
whether or not such proposals have yet to be executed into contracts; provided that the Company has a legitimate expectation of
doing business with such person or entity and provided further that Executive has had material business contacts with such person
or entity on behalf of the Company during such six-month period, whether such contact was initiated by the person or entity or
by Executive.

 

(v) “Restricted
Period” means the period commencing on the date of termination of Executive’s employment with the Company for any
reason and ending eighteen (18) months after such date, provided, however, that this period will not run during any time Executive
is in violation of this Section 8, it being the intent of the parties that the Restricted Period will be extended for any period
of time in which Executive is in violation of this Section

 

(vi) “Restricted
Territory” means the United States of America. In the event that the preceding definition of Restricted Territory is
deemed by a court of competent jurisdiction to be too broad to be enforced under the circumstances, then “Restricted Territory”
will mean:

 

(A) the
State of Colorado;

 

(B) each
state, province, or similar political subdivision in which the Company engaged in material business at the time of, or during the
twelve (12) month period prior to, the termination of Executive’s employment with the Company for any reason;

 

(C) each
state, province, or similar political subdivision in which the Company engaged in material business with respect to which Executive
provided material services on behalf of the Company at the time of, or during the twelve (12) month period prior to, the termination
of Executive’s employment with the Company for any reason;

 

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(D) each
city, county, township, or similar political subdivision in which the Company engaged in material business at the time of, or during
the twelve (12) month period prior to, the termination of Executive’s employment with the Company for any reason; and

 

(E) each
city, county, township, or similar political subdivision in which the Company engaged in material business with respect to which
Executive provided material services on behalf of the Company at the time of, or during the twelve (12) month period prior to,
the termination of Executive’s employment with the Company for any reason.

 

(c) Non-Competition.
During Executive’s employment with the Company and during the Restricted Period, Executive will not, on Executive’s
own behalf or on behalf of any other person, engage in any business competitive with or adverse to that of the Company. In addition,
during Executive’s employment with the Company and during the Restricted Period, Executive will not hold a position based
in or with responsibility for all or part of the Restricted Territory, with any person or entity engaging in the Business, whether
as employee, consultant, or otherwise, in which Executive will have duties, or will perform or be expected to perform services
for such person or entity, that is or are the same as or substantially similar to the position held by Executive or those duties
or services actually performed by Executive for the Company within the twelve (12) month period immediately preceding the termination
of Executive’s employment with the Company, or in which Executive will use or disclose or be reasonably expected to use or
disclose any Confidential Information.

 

(d) Non-Solicitation.
During Executive’s employment with the Company and during the Restricted Period, Executive will not, directly or indirectly,
on Executive’s own behalf or on behalf of any other party:

 

(i) Call
upon, solicit, divert, encourage or attempt to call upon, solicit, divert, or encourage any Customer or Prospective Customer for
purposes of marketing, selling, or providing products or services to such Customer or Prospective Customer that are competitive
with those offered by the Company;

 

(ii) Accept
as a customer any Customer or Prospective Customer for purposes of marketing, selling, or providing products or services to such
Customer or Prospective Customer that are competitive with those offered by the Company;

 

(iii) Induce,
encourage, or attempt to induce or encourage any Customer or Prospective Customer to purchase or accept products or services that
are competitive with those offered by the Company from any person or entity (other than the Company) engaging in the Business;

 

(iv) Induce,
encourage, or attempt to induce or encourage any Customer to reduce, limit, or cancel its business with the Company;

 

    11

     

    

 

(v) Solicit,
induce, or attempt to solicit or induce any Company Employee to terminate his or her employment or engagement with the Company;
or

 

(vi) Otherwise
interfere with or engage in any conduct that would have the effect of interfering with the business relationship between the Company
and any of its vendors, suppliers, consultants, or contractors.

 

(e) Executive
Acknowledgements. Executive acknowledges and agrees that the restrictive covenants in this Agreement (i) are essential elements
of Executive’s employment by the Company and are reasonable given Executive’s access to the Company’s Confidential
Information and the substantial knowledge and goodwill Executive will acquire with respect to the business of the Company as a
result of Executive’s employment with the Company, and the unique and extraordinary services to be provided by Executive
to the Company and (ii) are reasonable in time, territory, and scope, and in all other respects. Executive further acknowledges
and agrees that given his position, duties, and authority, Executive is “executive and management personnel” for purposes
of Section 8-2-113 of the Colorado Revised Statutes.

 

(f) Consideration.
Executive acknowledges and agrees that the covenants set forth in this Agreement are supported by adequate consideration, including,
but not limited to continued employment with the Company, the Company’s promise to pay separation benefits as described in
Section 5(b) above, and the Company’s other promises as described in this Agreement. The Company would not have agreed to
enter into this Agreement but for Executive’s agreement to the restrictions imposed by this Section 8.

 

(g) Judicial
Modification. Should any part or provision of this Section 8 be held invalid, void, or unenforceable in any court of competent
jurisdiction, such invalidity, voidness, or unenforceability will not render invalid, void, or unenforceable any other part or
provision of this Agreement. The parties further agree that if any portion of this Section 8 is found to be invalid or unenforceable
by a court of competent jurisdiction because its duration, territory, or other restrictions are deemed to be invalid or unreasonable
in scope, the parties intend that the Court will, to the maximum extent permitted by law, replace the invalid or unreasonable terms
with terms that are valid and enforceable and that come closest to expressing the intention of such invalid or unenforceable terms.

 

9. Enforcement.
Executive acknowledges and agrees that the Company will suffer irreparable harm in the event that Executive breaches any of Executive’s
obligations under Sections 6, 7, or 8 of this Agreement and that monetary damages would be inadequate to compensate the Company
for such breach. Accordingly, Executive agrees that, in the event of a breach by Executive of any of Executive’s obligations
under Sections 6, 7, or 8 of this Agreement, the Company will be entitled to obtain from any court of competent jurisdiction preliminary
and permanent injunctive relief in order to prevent or to restrain any such breach, without the need for posting bond or other
security. The Company will be entitled to recover its costs incurred in connection with any action to enforce Sections 6, 7, or
8 of this Agreement, including reasonable attorneys’ fees to the maximum extent permitted by law.

 

    12

     

    

 

10. Miscellaneous.

 

(a) Entire
Agreement. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and
supersedes all prior agreements (whether written or oral and whether express or implied) between the parties to the extent related
to such subject matter.

 

(b) Successors
and Assigns. This Agreement will be binding upon and inure to the benefit of the parties and their respective successors, permitted
assigns and, in the case of Executive, heirs, executors, and/or personal representatives. The Company may freely assign or transfer
this Agreement to an affiliated company and must assign to a successor following a merger, consolidation, sale of assets, or other
business transaction. Executive may not assign, delegate or otherwise transfer any of Executive’s rights, interests or obligations
in this Agreement without the prior written approval of the Company.

 

(c) Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed an original but all of which together
will constitute one and the same agreement. Facsimile or PDF reproductions of original signatures will be deemed binding for the
purpose of the execution of this Agreement.

 

(d) Notices.
Any notice pursuant to this Agreement must be in writing and will be deemed effectively given to the other party on (i) the date
it is actually delivered by personal delivery of such notice in person; (ii) one day after deposit in the custody of a reputable
overnight courier service (such as FedEx); or (iii) three days after its deposit in the custody of the U.S. mail, certified or
registered postage prepaid, return receipt requested; in each case to the appropriate address shown below (or to such other address
as a party may designate by notice to the other party):

 

	 	If to Executive:	Scott Ogur
	 	 	10200
E. Girard Avenue, Suite B420
	 	 	Denver, CO 80231
	 	 	 
	 	If to Company:	Helix TCS, Inc.
	 	 	10200 E. Girard Avenue, Suite B420
	 	 	Denver, CO 80231
	 	 	Attention: Chief Executive Officer

 

(e) Amendments
and Waivers. No amendment of any provision of this Agreement, including variations to the terms in Section 3, will be valid
unless the amendment is in writing and signed by the Company and Executive and approved pursuant to Section 3.10(j) of the Company’s
Investor Rights Agreement. No waiver of any provision of this Agreement will be valid unless the waiver is in writing and signed
by the waiving party. The failure of a party at any time to require performance of any provision of this Agreement will not affect
such party’s rights at a later time to enforce such provision. No waiver by a party of any breach of this Agreement will
be deemed to extend to any other breach hereunder or affect in any way any rights arising by virtue of any other breach.

 

    13

     

    

 

(f) Severability.
Each provision of this Agreement is severable from every other provision of this Agreement. Any provision of this Agreement that
is determined by any court of competent jurisdiction to be invalid or unenforceable will not affect the validity or enforceability
of any other provision. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full
force and effect to the extent not held invalid or unenforceable.

 

(g) Construction.
The section headings in this Agreement are inserted for convenience only and are not intended to affect the interpretation of this
Agreement. The word “including” in this Agreement means “including without limitation.” This Agreement
will be construed as if drafted jointly by the Company and Executive and no presumption or burden of proof will arise favoring
or disfavoring the Company or Executive by virtue of the authorship of any provision in this Agreement. All words in this Agreement
will be construed to be of such gender or number as the circumstances require.

 

(h) Survival.
The terms of Sections 6, 7, 8, 9, and 10 will survive the termination of this Agreement for any reason.

 

(i) Remedies
Cumulative. The rights and remedies of the parties under this Agreement are cumulative (not alternative) and in addition to
all other rights and remedies available to such parties at law, in equity, by contract or otherwise.

 

(j) Governing
Law. This Agreement will be governed by the laws of the State of Colorado without giving effect to any choice or conflict of
law principles of any jurisdiction.

 

(k) Venue.
The parties agree that any litigation arising out of or related to this Agreement or Executive’s employment by Company will
be brought exclusively in any state or federal court in Arapahoe County, Colorado. Each party (i) consents to the personal jurisdiction
of said courts, (ii) waives any venue or inconvenient forum defense to any proceeding maintained in such courts, and (iii) except
as expressly provided above, agrees not to bring any proceeding arising out of or relating to this Agreement or Executive’s
employment by Company in any other court.

 

IN WITNESS WHEREOF, the
parties hereto have executed and delivered this Agreement as of the date first written above.

 

	EXECUTIVE:	 	COMPANY:
	 	 	 	 
	 	 	Helix TCS, Inc.
	 	 	 
	/s/ Scott Ogur	 	By:	/s/ Zachary L. Venegas
	Scott Ogur, CFA	 		Zachary L. Venegas
	 	 	 	CEO

 

 

14cvia-ex101_31.htm

Exhibit 10.1

EXECUTION VERSION

 

FIRST AMENDMENT

FIRST AMENDMENT, dated as of March 19, 2019 (this “Amendment”), among Covia Holdings Corporation (the “Borrower”), the Guarantors party hereto, the Lenders party hereto, and Barclays Bank PLC (“Barclays”), as administrative agent (in such capacity, the “Administrative Agent”).  Capitalized terms used herein but not otherwise defined have the meanings assigned to such terms in the Credit Agreement (as hereinafter defined).

W I T N E S S E T H:

WHEREAS, the Borrower, the several lenders from time to time party thereto prior to giving effect to this Amendment, the other agents party thereto, and Barclays, as Administrative Agent, previously entered into that certain Credit and Guaranty Agreement, dated as of June 1, 2018 (the “Existing Credit Agreement”, and as amended by this Amendment and as further amended, restated, modified or supplemented from time to time, the “Credit Agreement”);

WHEREAS, the Borrower and the Required Revolving Lenders party hereto wish pursuant to Section 10.05 of the Existing Credit Agreement to amend the financial covenant set forth in Section 6.07 of the Existing Credit Agreement as described in this Amendment;

WHEREAS, the Lenders party hereto (who together constitute Required Revolving Lenders), the Borrower and the Administrative Agent wish to enter into this Amendment to modify the Existing Credit Agreement as set forth herein; and  

WHEREAS, each of the undersigned hereby consents to the terms of this Amendment. 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the parties hereto hereby agree as follows:

SECTION 1.Certain Amendments to the Existing Credit Agreement.

(a)Section 6.07 of the Existing Credit Agreement is, effective as of the First Amendment Effective Date (as defined below), hereby amended and restated in its entirety as follows:  

Section 6.07Financial Covenant.  

(a)Solely with respect to the Revolving Credit Facility, the Borrower covenants and agrees that it shall not, as of the last day of any Fiscal Quarter, permit the Leverage Ratio to exceed the level set forth below for the applicable period:

 

		
	
Period Ended
	
Leverage Ratio

	
 
	
 

	
March 31, 2019 – December 31, 2019
	
6.60:1.00

	
March 31, 2020 – December 31, 2020
	
5.50:1.00

	
March 31, 2021 – June 30, 2021
	
4.50:1.00

	
September 30, 2021 – December 31, 2021
	
4.25:1.00

	
March 31, 2022 and thereafter  
	
4.00:1.00

 

 

(b)Upon the occurrence of a Covenant Reset Trigger (as defined in Section 6.07(e)) below), the maximum Leverage Ratio level under Section 6.07(a) shall automatically revert to 3.50:1.00.  Each Loan Party agrees that it shall, and shall cause each Restricted Subsidiary to, after any senior officer of any Loan Party or Restricted Subsidiary has knowledge thereof, give prompt (but in any event by the date that is three days after any such senior officer first has knowledge thereof) notice in writing to the Administrative Agent of the occurrence of any Covenant Reset Trigger.

(c)Upon the occurrence of a Covenant Reset Trigger, (i) compliance with this Section 6.07 shall be tested on the date on which such Covenant Reset Trigger occurs, based on the financial statements most recently delivered pursuant to Section 5.01(a) or (b) and calculated on a Pro Forma Basis for such completed fiscal quarter, and on the last day of each fiscal quarter of the Borrower ended thereafter and (ii) the Borrower shall promptly cause a certificate (similar in form to the Compliance Certificate) to be delivered to the Administrative Agent setting forth the calculation of the financial covenant set forth in this Section 6.07.

(d)Each reference in the Existing Credit Agreement to Section 6.07 (and the Leverage Ratio as used therein) shall be deemed to reference such terms as they exist after giving effect to the First Amendment.

(e)The following terms used in this Section 6.07 shall have the following meanings:

 “Covenant Reset Trigger” means the occurrence of any of the following unless otherwise agreed by the Required Revolving Lenders: 

	
 
	
(i)
	
At any time that (x) any Revolving Loans or Swing Line Loans are outstanding under the Credit Agreement, (y) the Leverage Ratio exceeds 2.75:1.00 for the most recent Test Period then ended and (z) the aggregate amount of Unrestricted Cash held by the Borrower and/or any of its Domestic Subsidiaries exceeds $150,000,000 for more than five consecutive Business Days (each date on which the conditions set forth in the foregoing clauses (x), (y) and (z) are met, a “Revolver Payment Date”), the failure of the Borrower to repay on such Revolver Payment Date outstanding Revolving Loans and Swing Line Loans in an amount equal to the lesser of (A) the aggregate amount of all Revolving Loans and Swing Line Loans then outstanding and (B) the portion of such Unrestricted Cash held by the Borrower and/or any of its Domestic Subsidiaries that exceeds $150,000,000 in the aggregate;

	
 
	
(ii)
	
By the tenth Business Day after delivery of the annual audited financial statements delivered in connection with any Fiscal Year (the “Excess Cash Flow Prepayment Due Date”), the Borrower shall fail to have made, during such Fiscal Year or after such Fiscal Year-end and prior to the Excess Cash Flow Prepayment Due Date, mandatory prepayments of Term Loans pursuant to Section 2.14(d) for such Fiscal Year and voluntary prepayments of Loans ((x) excluding repayments of Revolving Loans or Swing Line Loans except to the extent the Revolving Commitments are permanently reduced in connection with such repayments, (y) including the actual amount paid by the Borrower in connection with any repurchase of Term Loans described in Section 2.13(c) and Section 10.06(c)(iv) and (z) excluding any such repayments of Loans funded with the proceeds of Indebtedness) that, in the aggregate, are equal to at least (A) 75% of Consolidated Excess Cash Flow for such Fiscal Year if, as of the last day 

2

 

	
 
		
of the most recently ended Fiscal Year, the Leverage Ratio (determined for any such period by reference to the Compliance Certificate delivered pursuant to Section 5.01(d) of the Credit Agreement calculating the Leverage Ratio as of the last day of such Fiscal Year) shall be greater than 3.50:1.00, (B) 50% of Consolidated Excess Cash Flow for such Fiscal Year if, as of the last day of the most recently ended Fiscal Year, the Leverage Ratio (determined for any such period by reference to the Compliance Certificate delivered pursuant to Section 5.01(d) of the Credit Agreement calculating the Leverage Ratio as of the last day of such Fiscal Year) shall be less than or equal to 3.50:1.00 and greater than 2.50:1.00 or (C) 25% of Consolidated Excess Cash Flow for such Fiscal Year if, as of the last day of the most recently ended Fiscal Year, the Leverage Ratio (determined for any such period by reference to the Compliance Certificate delivered pursuant to Section 5.01(d) calculating the Leverage Ratio as of the last day of such Fiscal Year) shall be less than or equal to 2.50:1.00 and greater than 2.00:1.00 (it being understood that no such prepayments shall be required for such Fiscal Year pursuant to this clause (ii) if, as of the last day of the most recently ended Fiscal Year, the Leverage Ratio (determined for any such period by reference to the Compliance Certificate delivered pursuant to Section 5.01(d) calculating the Leverage Ratio as of the last day of such Fiscal Year) shall be less than or equal to 2.00:1.00), unless the aggregate prepayment amount required pursuant to this clause (ii) would not exceed $10,000,000.  Voluntary prepayments of Loans that are included in the calculation of this clause (ii) are referred to herein as “Incremental Excess Cash Flow Prepayments.” For the avoidance of doubt, any voluntary prepayments made after the applicable Fiscal Year-end and prior to the applicable Excess Cash Flow Prepayment Due Date and included in the calculation of this clause (ii) for such Fiscal Year may not be included in the calculation of this clause (ii) for the subsequent Fiscal Year.  

	
 
	
(iii)
	
the aggregate amount of Indebtedness outstanding in reliance on the Incremental Dollar Amount exceeds, in an aggregate principal amount at any time outstanding, $50,000,000;

	
 
	
(iv)
	
the Borrower incurs any Indebtedness in reliance on clause (z) of Section 2.24(a) based on any Incremental Excess Cash Flow Prepayments;

	
 
	
(v)
	
the aggregate amount of Indebtedness outstanding in reliance on Section 6.01(cc) exceeds, in an aggregate principal amount at any time outstanding, the greater of $75,000,000 and 2.25% of Consolidated Tangible Assets;

	
 
	
(vi)
	
the aggregate amount of Restricted Junior Payments made in reliance on Section 6.04(i) exceeds the greater of $25,000,000 and 0.75% of Consolidated Tangible Assets.

“First Amendment” means the First Amendment dated as of March 19, 2019 among the Borrower, the Guarantors party thereto, the Revolving Lenders party thereto and the Administrative Agent.

“First Amendment Effective Date” means March 19, 2019.

(b)Each of the undersigned hereby consents to the Amendment and the modification of the Loan Documents as contemplated thereby.

3

 

SECTION 2.Amendment Effectiveness.  This Amendment shall become effective on and as of the first date on which the following conditions have been satisfied (such date, the “First Amendment Effective Date”):

(a)Executed Amendment.  The Administrative Agent shall have received a counterpart of this Amendment, executed and delivered by an Authorized Officer of the Borrower, each Guarantor, the Administrative Agent and Lenders that constitute the Required Revolving Lenders.

(b)No Default.  As of the First Amendment Effective Date, before and immediately after giving effect to this Amendment, (a) no event shall have occurred and be continuing or would result from this Amendment that would constitute a Default or an Event of Default and (b) the representations and warranties contained in the Credit Agreement and in the other Loan Documents shall be true and correct in all material respects on and as of the First Amendment Effective Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date; provided, that to the extent any such representation or warranty is already qualified by materiality or Material Adverse Effect, such representation or warranty shall be true and correct in all respects. 

(c)Expenses.  All reasonable out-of-pocket expenses required to be reimbursed by the Borrower on the First Amendment Effective Date shall have been paid (to the extent invoiced at least two (2) Business Days prior to the First Amendment Effective Date).

(d)Consent Fee.  The Administrative Agent shall have received from the Borrower, for the benefit of each Revolving Lender that has provided its signature hereto to the Administrative Agent no later than 5 p.m., New York City time, on March 18, 2019, a consent fee in an amount equal to 0.15% of the aggregate amount of, without duplication, the Revolving Exposure of such consenting Revolving Lender (including Barclays in its capacity as a Revolving Lender), held by such Revolving Lender on the First Amendment Effective Date immediately prior to giving effect to this Amendment, which fee will be fully earned and payable on the First Amendment Effective Date.

SECTION 3.Representations and Warranties. On and as of the First Amendment Effective Date, each Loan Party hereby represents and warrants to the Administrative Agent and each Lender that:

(a)the execution, delivery and performance of this Amendment has been duly authorized by all necessary corporate or other organizational action on the part of such Loan Party, has been duly executed and delivered by such Loan Party and is the legally valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability; and

(b)as of the date hereof (immediately before and after giving effect to the occurrence of the First Amendment Effective Date and the effectiveness of the Amendment), (a) no event has occurred and is continuing or would result from this Amendment that would constitute a Default or an Event of Default and (b) the representations and warranties contained in the Credit Agreement and in the other Loan Documents are true and correct in all material respects to the same extent as though made on and as of the date hereof, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date; provided, that to the extent any such representation or warranty is already qualified by materiality or Material Adverse Effect, such representation or warranty shall be true and correct in all respects.

4

 

SECTION 4.No Other Amendments; References to the Credit Agreement.  Other than as specifically provided herein or in the Credit Agreement, this Amendment shall not operate as a waiver or amendment of any right, power or privilege of the Lenders under (and as defined in) the Existing Credit Agreement or any other Loan Document (as such term is defined in the Existing Credit Agreement) or of any other term or condition of the Existing Credit Agreement or any other Loan Document (as such term is defined in the Existing Credit Agreement) nor shall the entering into of this Amendment preclude the Lenders from refusing to enter into any further waivers or amendments with respect to the Existing Credit Agreement.  All references to the Existing Credit Agreement in any document, instrument, agreement, or writing that is a Loan Document shall from and after the First Amendment Effective Date be deemed to refer to the Credit Agreement, and, as used in the Credit Agreement, the terms “Agreement,” “herein,” “hereafter,” “hereunder,” “hereto” and words of similar import shall mean, from and after the First Amendment Effective Date, the Credit Agreement.  This Amendment shall be a Loan Document for all purposes under the Credit Agreement and the other Loan Documents.

SECTION 5.Headings.  The section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose, modify or amend the terms or conditions hereof, be used in connection with the interpretation of any term or condition hereof or be given any substantive effect.

SECTION 6.Execution in Counterparts.  This Amendment may be executed in any number of counterparts (and by different parties hereto on different counterparts), each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment by facsimile or other electronic transmission will be effective as delivery of a manually executed counterpart thereof.

SECTION 7.Cross-References.  References in this Amendment to any Section are, unless otherwise specified or otherwise required by the context, to such Section of this Amendment.

SECTION 8.Governing Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.

SECTION 9.Reaffirmation.

(a)Each Loan Party hereby (i) expressly acknowledges the terms of the Credit Agreement, (ii) ratifies and affirms its obligations under the Loan Documents (including guarantees and security agreements) executed by the undersigned, (iii) acknowledges, renews and extends its continued liability under all such Loan Documents and agrees such Loan Documents remain in full force and effect, (iv) agrees that each Security Document secures all Obligations of the Loan Parties in accordance with the terms thereof and (v) confirms this Amendment does not represent a novation of any Loan Document. Each Loan Party ratifies and confirms that all Liens granted, conveyed, or assigned to the Administrative Agent by such Person pursuant to each Loan Document to which it is a party remain in full force and effect, are not released or reduced, and continue to secure full payment and performance of the Obligations.

(b)Each Loan Party hereby reaffirms, as of the First Amendment Effective Date, (i) the covenants and agreements contained in each Loan Document to which it is a party, including, in each case, such covenants and agreements as in effect immediately after giving effect to this Amendment and the 

5

 

transactions contemplated thereby, and (ii) its guarantee of payment of the Obligations pursuant to Article VII of the Credit Agreement and its grant of Liens on the Collateral to secure the Obligations.

(c)Each Loan Party further confirms that each Loan Document to which it is a party is and shall continue to be in full force and effect and the same are hereby ratified and confirmed in all respects.

(d)Each Loan Party hereby acknowledges and agrees that the acceptance by the Administrative Agent and each applicable Lender of this document shall not be construed in any manner to establish any course of dealing on such Person’s part, including the providing of any notice or the requesting of any acknowledgment not otherwise expressly provided for in any Loan Document with respect to any future amendment, waiver, supplement or other modification to any Loan Document or any arrangement contemplated by any Loan Document.

[SIGNATURE PAGES FOLLOW]

 

 

6

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers and general partners thereunto duly authorized, as of the date first written above.

 

	
COVIA HOLDINGS CORPORATION, as Borrower

	
 
	
 

	
 
	
 

	
By:
	
/s/ Andrew D. Eich

	
 
	
Name: Andrew D. Eich

	
 
	
Title: Executive Vice President and CFO

[Signature Page to Covia First Amendment]

 

 

	
BISON MERGER SUB I, LLC 

COVIA FINANCE COMPANY LLC

COVIA LIME LLC

COVIA SPECIALTY MINERALS INC.

WINCHESTER AND WESTERN RAILROAD COMPANY

ALPHA RESINS, LLC

BEST SAND CORPORATION

BEST SAND OF PENNSYLVANIA, INC.

BLACK LAB LLC

CHEYENNE SAND CORP.

CONSTRUCTION AGGREGATES CORPORATION OF MICHIGAN, INC.

FAIRMOUNT LOGISTICS LLC

FAIRMOUNT MINERALS, LLC

FAIRMOUNT SANTROL INC.

FML RESIN, LLC

FML SAND, LLC

FML TERMINAL LOGISTICS, LLC

FMSA INC.

MINERAL VISIONS INC.

SELF-SUSPENDING PROPPANT LLC

SHAKOPEE SAND LLC

SPECIALTY SANDS, INC.

STANDARD SAND CORPORATION

TECHNISAND, INC.

WEDRON SILICA COMPANY

WEST TEXAS HOUSING LLC

WEXFORD SAND CO.

WISCONSIN INDUSTRIAL SAND COMPANY, L.L.C.

WISCONSIN SPECIALTY SANDS, INC.,

each as a Guarantor 

 

	
 
	
 

	
 
	
 

	
By:
	
/s/ Andrew D. Eich

	
 
	
Name: Andrew D. Eich

	
 
	
Title: Executive Vice President and CFO

[Signature Page to Covia First Amendment]

 

	
BARCLAYS BANK PLC,

	
as Administrative Agent and as a Revolving Lender

	
 
	
 

	
 
	
 

	
By:
	
/s/ Kevin Crealese

	
 
	
Name: Kevin Crealese

	
 
	
Title:   Managing Director

[Signature Page to Covia First Amendment]

 

	
BNP PARIBAS, as a Revolving Lender

	
 
	
 

	
 
	
 

	
By:
	
/s/ David L. Berger

	
 
	
Name: David L. Berger

	
 
	
Title:   Managing Director

	
 
	
 

	
 
	
 

	
By:
	
/s/ Julie Gauduffe

	
 
	
Name:  Julie Gauduffe

	
 
	
Title:    Vice President

[Signature Page to Covia First Amendment]

 

 

	
HSBC BANK USA, NATIONAL 

ASSOCIATION, as a Revolving Lender

	
 
	
 

	
 
	
 

	
By:
	
/s/ Charles J. Miller

	
 
	
Name: Charles J. Miller

	
 
	
Title:   Vice President

[Signature Page to Covia First Amendment]

 

 

	
KBC BANK N.V., New York Branch, as a Revolving Lender

	
 
	
 

	
 
	
 

	
By:
	
/s/ William Cavanaugh

	
 
	
Name: William Cavanaugh

	
 
	
Title:   Director

	
 
	
 

	
 
	
 

	
By:
	
/s/ Susan M. Silver

	
 
	
Name:  Susan M. Silver

	
 
	
Title:    Managing Director

[Signature Page to Covia First Amendment]

 

	
PNC Bank, NA, as a Revolving Lender

	
 
	
 

	
 
	
 

	
By:
	
/s/ Keven Larkin

	
 
	
Name: Keven Larkin

	
 
	
Title:   Vice President

[Signature Page to Covia First Amendment]

 

	
KEYBANK NATIONAL ASSOCIATION, as a Revolving Lender

	
 
	
 

	
 
	
 

	
By:
	
/s/ Suzannah Valdivia

	
 
	
Name: SUZANNAH VALDIVIA

	
 
	
Title:   SENIOR VICE PRESIDENT

[Signature Page to Covia First Amendment]

 

 

	
Wells Fargo Bank, N.A., as a Revolving Lender

	
 
	
 

	
 
	
 

	
By:
	
/s/ Corbin M. Womac

	
 
	
Name: Corbin M. Womac

	
 
	
Title:   Director

[Signature Page to Covia First Amendment]

 

	
CITIZENS BANK, N.A., 

as a Revolving Lender

	
 
	
 

	
 
	
 

	
By:
	
/s/ Kari McDaniel

	
 
	
Name: Kari McDaniel

	
 
	
Title:   Vice President

 

[Signature Page to Covia First Amendment]

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