Document:

gldd-ex103_167.htm

 

Exhibit 10.3

 

AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

THIS AMENDMENT TO LOAN AND SECURITY AGREEMENT (the “Amendment”) is made as of this 12th day of July, 2016, by and among GREAT LAKES DREDGE & DOCK CORPORATION, a Delaware corporation (the “Borrower”), GREAT LAKES DREDGE & DOCK COMPANY, LLC, a Delaware limited liability company (the “Guarantor”), Banc of America Leasing & Capital, LLC, a Delaware limited liability company, The Huntington National Bank, a national banking organization organized under U.S. federal law, Pacific Western Bank, a California state-chartered bank, and SunTrust Equipment Finance & Leasing Corp., a Virginia corporation (together with their successors and assigns, collectively, the “Lenders”) and BANK OF AMERICA, N.A., as Administrative Agent (the “Administrative Agent”).

 

RECITALS

 

Borrower, Guarantor, Lenders and Administrative Agent are parties to that certain Loan and Security Agreement dated as of November 4, 2014 (the “Loan Agreement”); and 

 

Borrower, Guarantor, Lenders and Administrative Agent desire to amend the Loan Agreement as more fully set forth herein.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Lender and Borrower agree as follows:

 

	
 
	
1.
	
Definitions.  Unless otherwise expressly noted herein, terms used but not defined herein shall have the meaning ascribed in the Loan Agreement.

 

	
 
	
2.
	
Amendments.  Section 7.01(r) is hereby amended by striking “.” at the end of subsection (ii) and adding the following:

 

“; and

 

(iii) Notwithstanding subsections (i) and (ii) hereof, for the fiscal quarters then ending June 30, 2016 and September 30, 2016, Section 9.14(a) in the Existing Credit Agreement as the Existing Credit Agreement is in effect on the Closing Date without regard to any subsequent amendment, modification or restatement of the Existing Credit Agreement shall be amended and restated in its entirety to read as follows:

	
 
	
(a)
	
Consolidated Total Leverage Ratio.  As of the last day of the fiscal quarter then ending June 30, 2016 of the Borrower, permit the Consolidated Total Leverage Ratio to be greater than 5.00 to 1.00.  As of the last day of the fiscal quarter then ending September 30, 2016 of the Borrower, permit the Consolidated Total Leverage Ratio to be greater than 4.75 to 1.00.”

 

 

" "" 

 

For the avoidance of doubt, with respect to the fiscal quarter ending December 31, 2016 and each fiscal quarter thereafter, no such amendment shall apply.

 

	
 
	
3.
	
Effect on Loan Agreement.  This Amendment shall be effective upon execution by the parties hereto.  Except as set forth herein, the Loan Agreement remains in full force and effect.

 

	
 
	
4.
	
Waiver of Prior Default.  Lenders hereby notify Borrower that Lenders hereby waive any Default or Event of Default under the Loan Documents existing or occurring prior to the date hereof with respect to the Borrower’s compliance with the Consolidated Total Leverage Ratio for the fiscal quarter then ending June 30, 2016 (the “Prior Default”).  This waiver is expressly limited to the Prior Default, and each Lender hereby expressly reserves all of its rights and remedies with respect to any Default, Event of Default, default or event of default under the Loan Documents other than the Prior Default.  

 

	
 
	
5.
	
Amendment Fee.  In connection with this Amendment, the Borrower shall pay a fee in the amount of 0.05% of the aggregate principal amount of the Loans outstanding on the date hereof, to be shared ratably by the Lenders pursuant to each Lender’s Applicable Percentage of the Loans.

 

	
 
	
6.
	
Counterparts.  This Amendment may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

 

[Remainder of this page intentionally left lank; Signature Page follows]

 

 

" "" 

 

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

 

 

GREAT LAKES DREDGE & DOCK CORPORATION, as the Borrower

 

 

By: _/s/ Jonathan W. Berger

Name: Jonathan W. Berger

Title: Chief Executive Officer

 

 

GREAT LAKES DREDGE & DOCK COMPANY, LLC, as the Guarantor

 

 

By: _/s/ Jonathan W. Berger

Name: Jonathan W. Berger

Title: Chief Executive Officer

 

 

BANK OF AMERICA, N.A., as Administrative Agent

 

 

By: _/s/ Bridgett J. Manduk Mowry

Name: Bridgett J. Manduk Mowry

Title: Vice President

 

 

BANC OF AMERICA LEASING & CAPITAL, LLC, as a Lender

 

 

By: _/s/ David L. Pauley

Name: David L. Pauley

Title: Senior Vice President

 

 

 

 

 

 

 

 

 

" "" 

 

THE HUNTINGTON NATIONAL BANK, as a Lender

 

 

By: _/s/ Kim J. Trombetta

Name: Kim J. Trombetta

Title: Sr. Vice President 

 

 PACIFIC WESTERN BANK, as a Lender

 

 

By: _/s/ Audrey Yen

Name: Audrey Yen

Title: Authorized Signatory

 

 

                                  SunTrust Equipment Finance & Leasing Corp., as a Lender

 

 

By: _/s/ Lesley Dedrick

Name: Lesley Dedrick

Title: Vice President

 

 

 

 

 

" ""Exhibit

Exhibit 10-1

DIRECTOR COMPENSATION
(effective as of January 1, 2016)

The following is a summary of the material terms of the compensation arrangement for members of the Board of Directors of The Goldfield Corporation (the “Company”).

Directors who are also employees of the Company are not paid any fees or other remuneration for service on the Board of Directors or on any Board of Directors’ committee.

Each non-employee director is paid an annual cash retainer of $36,000.  Each of the chairmen of the Audit Committee and of the Benefits and Compensation Committee also receives annual cash retainers of $15,000.  Both the director and chairmen retainers are payable in monthly installments.

Each non-employee director also receives $1,000 for each Board of Directors meeting attended in person and $500 for attendance at a Board of Directors meeting by telephone.  In addition, each non-employee director who is a committee member receives $500 for attendance at a committee meeting in person and $250 for attendance at a committee meeting by telephone, except for the Executive Committee for which there is no compensation.

Directors also are reimbursed for travel and other out-of-pocket costs associated with their attendance at Board of Directors and committee meetings.Exhibit

Exhibit 10.1

June 14, 2016

Mr. Tim Taylor
Vice President, Finance, Business Operations, & Strategy
Globalstar, Inc. 
300 Holiday Square Blvd. 
Covington, Louisiana 70433

		
	Ref:
	Contract Number GINC-C-08-0390 (“Contract”) between Globalstar, Inc. (“Globalstar”) and Hughes Network Systems, LLC (“Hughes”), as amended;

Letter Agreement between Globalstar and Hughes regarding equity payment option, dated April 20, 2015 (“Equity Payment Letter Agreement”), as amended on July 2, 2015, August 11, 2015, December 3, 2015 and March 7, 2016

Dear Tim:

Reference is made to the above-referenced Contract and Equity Payment Letter Agreement.

In consideration of the mutual promises and covenants contained in this letter, Globalstar and Hughes (each a “Party” and collectively, the “Parties”) agree as follows:

1. The Parties agree to delete Section 6 of the Equity Payment Letter Agreement (as amended) in its entirety and replace it with the following new Section 6:

6.    Globalstar will provide Hughes downside protection up to and including September 30, 2016 (“Downside Protection Period”), such that (A) the total amount of gross proceeds Hughes receives from the sale of any Payment Milestone Shares plus, if applicable, the market value of any Payment Milestone Shares still held by Hughes as of the close of trading on the last day of the Downside Protection Period shall be no less than (B) $15,516,236.  In the event that, at the earlier of i) the date on which Hughes has sold all of the Payment Milestone Shares and ii) the close of trading on the last day of the Downside Protection Period, (A) is less than (B), Globalstar will provide downside protection to Hughes by issuing additional shares of Freely Tradable GSAT Stock having a total value equal to the difference between (B) and (A).  The additional shares to be issued, if any, will be valued at a trailing volume weighted average price for the 5 trading days prior to the earlier of the date on which the Payment Milestone Shares have been finally sold or the close of trading on the last day of the Downside Protection Period, whichever is applicable.  Globalstar shall issue any such additional shares of Freely Tradable GSAT Stock within 5 business days of written notice from Hughes to be sent no later than one business day following the end of the Downside Protection Period.  Any shares of Freely Tradable GSAT Stock issued by Globalstar under this Section 6 shall be freely tradable, free and clear of any liens, encumbrances, legends or other restrictions.

2. Except as amended herein, all terms and conditions of the Equity Payment Letter Agreement and Contract shall remain in full force and effect. In the event of a discrepancy between the terms and conditions contained in the Equity Payment Letter Agreement, as herein amended, and those contained in the Contract, the terms and conditions contained in the Equity Payment Letter Agreement shall prevail.

Mr. Tim Taylor
June 14, 2016
Page 2

We would appreciate Globalstar acknowledging its agreement with the terms of this fifth amendment to the Equity Payment Letter Agreement by having a duly authorized representative sign in the signature block below.

Sincerely, 

/s/ Sean P. Fleming

Sean P. Fleming
Vice President and Associate General Counsel

AGREED AND ACCEPTED BY:    

GLOBALSTAR, INC.            

Signature     /s/ Timothy Taylor            

Name     Timothy Taylor                    
                
Title     VP, Finance                                                    

Date     June 14, 2016

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