Document:

exhibit101.htm

Exhibit 10.1

 

MEMORANDUM OF UNDERSTANDING

This binding Memorandum of Understanding (“MOU”), dated as of January 20, 2012, is made by and between Charles & Colvard, Ltd., a North Carolina corporation with its principal office at 300 Perimeter Park Drive, Suite A, Morrisville, North Carolina, 27560 (the “Company”), and Serenity Technologies, Inc., an Oregon corporation with its principal office at 28765 Single Oak Drive, Suite 140, Temecula, CA 92590 (“Serenity”).

Background

The Company is engaged in the manufacture and distribution of Charles & Colvard Created Moissanite® as loose gemstones and as incorporated into fine jewelry.

The Company desires to have Serenity provide exclusively to the Company services to enhance Charles & Colvard Created Moissanite loose gemstones (the “Product”) provided to Serenity by the Company, and then return such gemstones to Company.  These enhancement services will include whitening, color treatment and further advances related to Moissanite designed to provide the highest quality product to the market (the “Services”).

To begin the Services immediately, the parties are entering into this binding MOU with the intent to convert the MOU into a binding legal document containing traditional business and legal terms within sixty (60) days of the execution of the MOU and agree to negotiate in good faith towards such agreement.

NOW, THEREFORE, in consideration of the premises and the mutual covenants of this MOU, the parties hereto agree as follows:

	
1.0  

	
Exclusivity.  Serenity will provide to the Company the Services in connection with the Products, on an exclusive basis, in response to written orders issued by the Company to Serenity from time to time.  During the Term (as defined below), Serenity shall not perform any services on Moissanite for any third party or for itself.

	
2.0  

	
Minimum Guaranteed Commitments and Pricing.

	
2.01  

	
Minimum Guaranteed Commitments and Pricing.

	
.1  

	
During the [****] after execution of this MOU, the Company shall provide a minimum guarantee commitment for the [****] of [****] carats of Product for processing by Serenity using the Services into a finished product (the “Finished Product”).  The Company shall pay Serenity $[****] per carat for the Services.

	
.2  

	
For the next [****] after the initial quantity has been processed, the Company shall provided a minimum guarantee commitment per month of [****] carats of Product for processing by Serenity into the Finished Product.  The Company shall pay Serenity $[****] per carat for the Services.

[****] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission.  Omitted portions have been filed separately with the Commission.

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.3  

	
For the remainder of the Term of this MOU, the Company shall provide a minimum guarantee commitment per month of [****] carats of Product for processing by Serenity into the Finished Product.  The Company shall pay Serenity $[****] per carat for these Services, provided however, if the Company provides [****] or more carats per month of Product for processing by Serenity, the Company shall pay Serenity $[****] per carat for the Services (the “Threshold Price”)

	
.4  

	
Within ten Business Days of the Threshold Price being reached, the Company shall grant Serenity [****] shares of unregistered restricted stock of the Company (the “Restricted Stock”).  The restrictions on the Restricted Stock shall lapse in increments of [****] shares on each anniversary of the grant date of the Restricted Stock, provided that the Threshold Price is maintained continuously throughout each twelve month period prior to such anniversary date.  If the Threshold Price is not maintained continuously throughout any such twelve month period prior to such anniversary date, Serenity shall forfeit the [****] share increment of Restricted Stock for which the restrictions would have lapsed on such anniversary date.

	
.5  

	
Exceeding Minimum Guaranteed Commitments.  The Company shall be entitled to provide Serenity more than the minimum guaranteed commitment per month of Product for processing by Serenity into the Finished Product.  In the event that the Company provides more than the minimum guaranteed commitment of Product for a month to Serenity, the excess amount of carats provided above the monthly minimum guaranteed commitment shall count against any future minimum guaranteed commitments of Product by the Company.

	
.6  

	
Failure to Meet Minimum Guaranteed Commitments.  Serenity must notify the Company in writing within [****] days of any failure by the Company to meet the delivery of a minimum guaranteed commitment of carats and the Company shall have [****] days to cure such failure.  In the event that the Company fails to cure such failure, the exclusivity provisions of this MOU set forth in Sections 1 and 14  shall no longer apply, but all other terms and conditions of this MOU shall remain in full force and effect, it being understood that the special pricing offered by Serenity to Company under conditions of exclusivity would no longer apply and Serenity would revert to standard pricing based upon order volumes submitted by Company.

	
3.0  

	
Description of Services.  Serenity will provide the Services that include proprietary treatments that enhance the appearance of the Product. The current treatments are designed to provide a whitening enhancement to the Product or render the Product with Fancy Color Treatments. Serenity’s proprietary treatments for the Product are of a nature that modify the surface properties to create the Finished Product. Serenity will provide the Company with a general disclosure regarding the enhancement, do’s and dont's and general precautions.

[****] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission.  Omitted portions have been filed separately with the Commission.

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4.0  

	
Disclosure of Treatment.  The Company hereby acknowledges and agrees to provide any required disclosure regarding the Finished Product in accordance with the Company’s marketing and branding programs specific to the Finished Product to each party to which it sells, distributes or transfers in any manner the Finished Product processed by Serenity, whether pursuant to a sale or consignment relationship or otherwise. The parties agree to issue a joint press release regarding the entry into this MOU in accordance with the marketing goals for the Finished Product.

	
5.0  

	
Process Liabilities.  The processes used by Serenity for creating the Finished Products are inherently safe and radiation free. Serenity Labs practices procedures to ensure the highest level of safety and the best outcome for the gemstones being processed.

	
6.0  

	
Delivery and Inspection Rights.

	
6.01  

	
Upon completion of the Services on any Product but in any event no later than [****] business days of receipt of the Product by Serenity from the Company, the Finished Product shall be delivered by Serenity to the Company. Serenity will promptly notify Company on changes if any on the turnaround time for treatment of Product if Company submits greater than [****] carats in a single shipment. The Company understands and acknowledges that Serenity will perform the Services to create the Finished Product at the rate of one or two production cycles per week which the Company will take into account with regard to the logistics for shipments of Product to meet the monthly minimum commitments.

	
6.02  

	
Serenity undertakes and warrants that: (i) the Finished Product shall be of high quality as to workmanship, design and materials used therein, and, without derogating from the generality of the foregoing, shall be at least equal in quality, workmanship, appearance, design and materials to the samples submitted by Serenity to the Company prior to the date hereof and (ii) it is aware that the Company provides a limited lifetime warranty to its customers for the Product and represents and warrants that the processes used by Serenity in the Services that result in the Finished Product will support the Company’s lifetime warranty obligations (jointly the “Serenity Warranties). Prior to the performance of any Services under this MOU,  Serenity and the Company will establish an agreed upon QA/QC Protocol for the Finished Product, which shall include standards and specifications for QA/QC evaluation and the creation of duplicate master sets of stones to be used in the QA/QC evaluation QA/QC Protocol for the Finished Product. The Company shall have the right to return any Finished Product if the Services provided are defective or not of appropriate quality in accordance with the QA/QC Protocol, it being understood that it is the Company’s responsibility to examine in accordance with the QA/QC Protocol and accept or reject the Finished Product, within [****] Business Days of receipt at its facilities. If any Finished Product is not acceptable to the Company in accordance with the QA/QC Protocol, Serenity will repeat the Services at its own cost to bring the Finished Product into compliance with the QA/QC Protocol, it being understood that all shipping and insurance costs to transport back and forth the Finished Product for re-treatment will be borne by the Company.  If Serenity is unable to bring any Finished Product into compliance with the QA/QC Protocol within [****] Business Days of its return, Serenity shall immediately reimburse the Company for any Service Fees associated with such defective Finished Product, except if Force Majeure conditions prevail.

[****] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission.  Omitted portions have been filed separately with the Commission.

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7.0  

	
Invoices; Payment Timing. Serenity shall provide to the Company invoices for all Finished Product returned to and received by the Company.  During the [****] of the term the Company agrees to pay invoices immediately upon receipt of goods on its next regularly scheduled pay run. Commencing with the [****] of the term and thereafter the Company agrees to pay invoices within thirty days of receipt of the invoice. If payment is not received by Serenity in accordance with this MOU for reasons other than breach of the provisions of this MOU by Serenity, then Serenity may assess an interest not exceeding the lesser of 1.5% on the balance due or the maximum penalty allowable under applicable law and additionally may withhold delivery on subsequent purchase orders, aggregating to an amount not exceeding the amounts so due and not paid by Company, until late payments are cleared.

	
8.0  

	
License.  The Company hereby grants to Serenity during the Term (defined below), a limited non-exclusive, royalty-free, non-transferable, non-sublicenseable license to use the Products solely to perform Serenity’s express obligations under this MOU.  For clarity, the rights granted pursuant to this MOU provide Serenity no right or license to access or use the Products for any purpose other than to perform Serenity’s express obligations under this MOU.

	
9.0  

	
Intellectual Property Rights.  Each party retains ownership of its Intellectual Property and trade secrets.  “Intellectual Property” means all rights in and to registered designs, trademarks, copyrights, and patents (including applications therefor and supplementary protection certificates) and similar rights, including, but not limited to, the nature of any patents.

	
10.0  

	
Term and Termination.

	
10.01  

	
This MOU shall be effective as of the date of execution by both parties and shall extend for a period of [****] (the “Term”).

	
10.02  

	
Company shall have the right to immediately terminate this MOU by giving written notice to Serenity in the event that Serenity does any of the following:

	
  

	
(i) Fails to obtain or maintain insurance in the amount and of the type provided for in this MOU;

	
  

	
(ii) Liquidates, dissolves or becomes insolvent (however evidenced) or bankrupt, or commits any act of bankruptcy, makes a general assignment or deed of trust for the benefit of creditors, suspends the transaction of business or consents to the appointment of a trustee or a receiver, or a trustee or a receiver is appointed for said party or for a substantial part of its property, or bankruptcy, reorganization, insolvency, or similar proceedings are instituted by or against Serenity;

	
  

	
(iii) Fails to assemble and/or ship a Finished Product in accordance with Company’s instructions and does not cure such failure within [****] days of written notice from Company (not applicable if Force Majeure conditions prevail);

(iv) Makes a representation or warranty that is untrue or incorrect in any material respect;

[****] Confidential treatment requested pursuant to a request for confidential treatment filed with the Securities and Exchange Commission.  Omitted portions have been filed separately with the Commission.

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(v) Violates the confidentiality or exclusivity obligations set forth in this MOU;

(vi) Attempts to, or does, sell, encumber, secrete, convert or misuse the Products (or any variations thereof, including without limitation, Finished Products); or

(vii) Attempts to or does assign or transfer this MOU without the prior written consent, including by operation of law, merger or acquisition (including a stock acquisition in which it is the surviving entity) or to an affiliate.

	
11.0  

	
Force Majeure.  No Party will be liable for the non-performance or defective or late performance of any of its obligations under this MOU to such extent and for such period(s) of time as such non performance, defective performance or late performance is due to 'force majeure' including without limitation acts of God, war (declared or undeclared), civil insurrection or unrest, riots, revolutions, fire, floods or other severe weather events,strikes, lock-outs, or industrial action.

If any Party is unable to perform its obligations for reasons set out such Party shall resume performance as soon as practicable upon the relevant Force Majeure event ceasing.

 

	
12.0  

	
Confidentiality.  Each party shall keep, and cause its respective affiliates, officers, directors, employees and agents to keep confidential and not disclose or use for its own purpose (other than in connection with its stated obligations under this MOU) any non-public, confidential, proprietary information or trade secrets in oral, written, electronic or other form (and shall include information received, learned or resulting from tours of the other party’s facility(ies)) which in any way shall relate to the other party (the “Disclosing Party”) hereto, or to any Affiliate thereof, including, without limitation, the Disclosing Party’s products, product formulations and specifications, customer lists, manufacturing processes, intellectual property (whether or not registered), business, know-how, pricing, methods, trade secrets and technology that shall be furnished or otherwise made available in connection with the negotiation and performance of this MOU (collectively, the “Confidential Information”).  The obligation to keep such Confidential Information confidential shall continue during the Term and for a period of five (5) years after the expiration or termination of this MOU (except that it is understood that any Confidential Information that is considered a “trade secret” shall remain confidential for so long as it qualifies as a “trade secret” under applicable law); however, it shall not apply to any Confidential Information (i) that is now or later becomes publicly available through no fault of the party which had received it (the “Receiving Party”); (ii) that the Receiving Party properly obtains from a third party lawfully entitled to disclose it; (iii) that the Receiving Party already has in its possession as indicated in its written records and was not acquired directly or indirectly from the party providing it; or (iv) the other party independently develops without any use of or reference to the Confidential Information.

	
13.0  

	
The Company’s Additional Obligations.

	
13.01  

	
The Company represents and warrants that it has the right and power to grant the licenses granted herein and that there are no other MOUs with any other party in conflict with such grant.

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13.02  

	
The Company further represents and warrants that it has no actual knowledge that the Services or any products or materials used in connection therewith infringes any valid rights of any third party.

Notwithstanding any term set forth herein, nothing in this MOU shall be interpreted as obligating the Company to use Serenity for the performance of the Services, it being understood that as long as Serenity is not in breach of this MOU, the Company may not use any other third party for the performance of services substantially similar to the Services.  For the avoidance of doubt, the Company’s sourcing of any original source Moissanite material from a supplier shall not be seen as a violation of the exclusivity obligations of the Company in this Section.

	
14.0  

	
Serenity’s Additional Obligations.

	
14.01  

	
Serenity shall maintain high standards of professionalism and shall at all times comply with all applicable laws, statutes, ordinances and regulations and refrain from any unethical conduct or any other conduct that might tend to damage the reputation of the Company or the Products.

	
14.02  

	
Serenity shall comply with all safety and environmental laws and regulations in the performance of the Services.

	
15.0  

	
Indemnity.

	
15.01  

	
Serenity shall indemnify and hold harmless the Company, its affiliates, employees, officers and directors from and against any and all claims, actions, suits, proceedings, judgments, damages, liabilities, costs and expenses, including reasonable attorney’s fees (“Claims”), including, but not limited to, Claims from Serenity’s directors, officers, employees, contractors, licensees, or any other personnel associated, directly or indirectly, with Serenity, arising directly or indirectly from Serenity’s performance or breach of this MOU (including its breach of any representation or warranty by Serenity), its facilities, processes or practices, its negligent acts or omissions, or willful misconduct. The Company shall give Serenity prompt notice of any matter for which Serenity has an indemnification obligation.

	
15.02  

	
The Company shall indemnify and hold harmless Serenity against any Claim resulting from the sole negligent act, sole omission, or sole gross negligence or willful misconduct of the Company related to this MOU or, except with respect to a claim relating to a breach of one of the Serenity Warranties, any non-negligent act of Serenity related to a Finished Product, the transformation of the color of such Product, or any enhancement of value of such Finished Product pursuant to such color transformation.  Serenity shall give the Company prompt notice of any matter for which the Company has an indemnification obligation.

	
16.0  

	
Insurance.

Serenity shall be responsible for and shall arrange for adequate insurance of the Products for the period from which such Products are delivered to Serenity’s facility and until the time Finished Products are shipped out of Serenity’s facility, it being understood that the Company shall be

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responsible for delivery including costs towards freight, insurance and transportation of the Products to Serenity’s facility and transportation of the Finished Products back to the Company. Serenity shall provide the Company with a copy of its insurance certificate detailing terms of its insurance policy.

	
17.0  

	
Representations and Warranties.

	
17.01  

	
Each party represents and warrants, which representations and warranties shall survive the execution and delivery of this MOU, for the express benefit of the other, that:

 

(i)                           Such party is a corporation duly organized and validly existing in good standing under the laws pursuant to which it is formed, and is duly qualified to do business in each jurisdiction where its ownership or lease of property or the conduct of its business requires such qualification, and no proceedings for the liquidation or dissolution of such party are pending or contemplated by such party;

 

(ii)                                      There is no action, suit or proceeding pending or threatened against or affecting such party before or by any court, administrative agency or other governmental authority which in any way will impair such party’s ability to perform its obligations under, or which otherwise brings into question the validity of the transactions contemplated by, this MOU, and no consent, approval or authorization of or by any court, administrative agency or other governmental authority is required in connection with the execution, delivery or performance of this MOU;

 

(iii)                 Such party’s execution, delivery and performance of this MOU has been duly authorized by all appropriate action on the part of such party, and this MOU constitutes the legal, valid and binding obligation of such party, enforceable against such party in accordance with the terms hereof; and

 

(iv)                 Neither the execution and delivery by such party of this MOU, nor the consummation by such party of the transactions contemplated hereby, nor compliance by such party with the provisions hereof, conflicts with or results in a breach of any of the provisions of the charter documents of such party, or of any applicable law, judgment, order, writ, injunction, decree, rule or regulation of any court, administrative agency or other governmental authority, or of any MOU, agreement or other instrument to which such party is a party or by which such party is bound, or constitute a default under any of the above.

	
17.02  

	
Serenity represents and warrants that it has the financial resources and business operations which will enable it to perform the Services and will do so in good faith and with reasonable diligence and will utilize its skill and resources in such effort to the extent that high standards of business practice and judgment dictate.

	
18.0  

	
Other Terms and Provisions.

 

	
18.01  

	
All notices, consents and approvals under this MOU must be delivered in writing by courier, by electronic facsimile with receipt confirmed, or by certified or registered mail (postage prepaid and return receipt requested) to the other party at the address set forth in

 

 

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the preamble hereto, and will be effective upon receipt.  Either party may change its address by giving notice of the new address to the other party.

 

	
18.02  

	
Company and Serenity are each independent contractors and neither party shall be, nor represent itself to be, a franchisor, franchisee, joint venturer, partner, master, servant, principal, agent or legal representative of the other party for any purpose whatsoever.  Serenity will not have, and shall not represent to any third party that it has, any authority to act on behalf of Company.

 

	
18.03  

	
Serenity shall not use subcontractors in providing Services under this MOU without obtaining Company’s prior written consent.  In the event Company provides such consent to use subcontractors hereunder, Serenity shall be solely responsible for all obligations arising out of such use of subcontractors and for all acts and omissions of such subcontractors.

 

	
18.04  

	
The validity, interpretation and performance of this MOU shall be controlled by and construed under the laws of the State of North Carolina excluding that body of laws controlling conflict of laws.  Serenity shall take no action challenging the application of such laws.

 

	
18.05  

	
Any judicial proceeding by either Company or Serenity involving the other, involving, directly or indirectly, any matter or claim in any way arising out of, related to or connected with this MOU, shall be brought only in the federal or state courts in the State of North Carolina and, by execution and delivery of this MOU, both Serenity and Company accept, generally and unconditionally, the exclusive jurisdiction of the aforesaid courts.   Nothing herein shall affect the right to serve process in any manner permitted by law.

 

[Signature page follows]

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[Signature Page to Services MOU]

IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have executed this MOU on the date set forth below.

Charles & Colvard, Ltd.                                                                Serenity Technologies, Inc.

By: /s/ Randy McCullough                                                                By: /s/ Suneeta Neogi

Title: President & CEO                                                                Title: President

Date: January 24, 2012                                                                Date: January 20, 2012

# 2340328_4.DocExhibit 10.66

 

CONSENT AND SECOND AMENDMENT TO FIRST LIEN CREDIT AGREEMENT

 

THIS CONSENT AND SECOND AMENDMENT TO FIRST LIEN CREDIT AGREEMENT (this “Amendment”) is entered into as of December 12, 2011 by and among GUNDLE/SLT ENVIRONMENTAL, INC., a Delaware corporation (the “Borrower”), the other Persons party hereto that are designated as a “Credit Party” on the signature pages hereof, GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation (in its individual capacity, “GE”), as Agent and as a Lender, and the other LENDERS signatory hereto.

 

W I T N E S S E T H:

 

WHEREAS, Borrower, the other Credit Parties, GE, as Agent and as a Lender, and the other Lenders from time to time party thereto are parties to that certain First Lien Credit Agreement dated as of May 27, 2011 (as the same has been and may hereafter be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”);

 

WHEREAS, Holdings has proposed to effectuate an initial public offering of shares of its common stock, par value $0.001 per share,  to be underwritten on a firm commitment basis by a group of underwriters (the “Gundle IPO”), pursuant to a registration statement on Form S-1, registration statement number 333-175475, as  filed with the U.S. Securities and Exchange Commission (the “SEC”), a result of which shall be that Sponsor shall cease to own, directly or indirectly, at least a majority of both the economic and voting Stock of Holdings or Stock representing voting control of Holdings; and

 

WHEREAS, the Credit Parties have requested that the Agent and Lenders (i) consent to certain transactions in connection with the Gundle IPO and (ii) in connection with the Gundle IPO, amend certain provisions of the Credit Agreement, and, subject to the satisfaction of the conditions set forth herein, the Agent and the Lenders signatory hereto are willing to do so, on the terms set forth herein.

 

NOW, THEREFORE, in consideration of the mutual agreements, provisions and covenants contained herein, the parties agree as follows:

 

1.             Defined Terms.  Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Credit Agreement.

 

2.             Limited Consent.  Upon satisfaction of the conditions set forth in Section 4 hereof, and in reliance upon the representations and warranties of the Credit Parties set forth in the Credit Agreement and in this Amendment, and notwithstanding anything to the contrary contained in the Credit Agreement or any other Loan Document, Agent and the Lenders hereby consent to the payment by the Credit Parties of a termination fee to Sponsor in the aggregate amount of $3,000,000 (such fee, the “Management Agreement Termination Fee”) in connection with the termination of the Management Agreement concurrently with or promptly after the consummation of the Gundle IPO.  The consent contained in this Section 2 is a limited consent and (i) shall only be relied upon and used for the specific purposes set forth herein, (ii) shall not

 

 

constitute nor be deemed to constitute a waiver of any term or condition of the Credit Agreement and the other Loan Documents, (iii) shall not constitute nor be deemed to constitute a consent by Agent or any Lender to anything other than the specific purposes set forth herein and (iv) shall not constitute a custom or course of dealing among the parties hereto.

 

3.             Amendments to Credit Agreement.  Upon satisfaction of the conditions set forth in Section 4 hereof, the Credit Agreement is hereby amended as follows:

 

a.     Section 1.1(c)(i)(A)(ii) of the Credit Agreement is hereby amended by deleting the reference to “$10,000,000” set forth therein in its entirety and substituting “$15,000,000” therefor.

 

b.     Section 5.1 of the Credit Agreement is hereby amended by (i) deleting “and” at the end of clause (y) thereof, (ii) deleting the “.” at the end of clause (z) thereof and substituting “; and” therefor and (iii) adding the following new clause (aa) to the end of such section:

 

“(aa)       Liens securing Indebtedness permitted under subsection 5.5(k); provided such Liens encumber only the assets of the Foreign Subsidiaries obligated in respect of such Indebtedness.”

 

c.     Section 11.1 of the Credit Agreement is hereby amended by deleting the definitions of “Change of Control” and “Consolidated EBITDA” set forth therein in their entirety and substituting the following, respectively, therefor:

 

“Change of Control” means (i) prior to a Qualified IPO, the Sponsor shall at any time and for any reason cease to own, directly or indirectly, at least a majority of both the economic and voting Stock of Holdings (determined on a fully diluted basis) or otherwise ceases to control Holdings, (ii) after a Qualified IPO, (A) the Sponsor shall at any time and for any reason cease to own, directly or indirectly, at least twenty percent (20%) of both the economic and voting Stock of Holdings (on a fully diluted, aggregate basis (regardless of class of any such Stock of Holdings)) or (B) any “person” or “group” (as such terms are used in the Sections 13(d) and 14(d) of the Exchange Act, other than the Sponsor, (x) is or shall become the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), of thirty percent (30%) or more of the voting or economic Stock of Holdings (in either case, on a fully diluted, aggregate basis (regardless of class of any such Stock of Holdings)) or (y) has the right to elect (by contract or otherwise) a majority of the board of directors of Holdings or (C) Continuing Directors shall cease to constitute a majority of the members of the board of directors of Holdings, (iii) Holdings shall at any time and for any reason cease to own directly 100% of the Stock and Stock Equivalents of the Borrower or (iv) a “change of control” or similar event shall occur as provided (and defined) in the Second Lien Indebtedness Documents.

 

“Consolidated EBITDA” means, for any period, Consolidated Net Income

 

2

 

for such period, adjusted by (A) adding thereto (in each case to the extent deducted in determining Consolidated Net Income for such period), without duplication, the amount of (i) total interest expense (inclusive of amortization of deferred financing fees and other original issue discount and banking fees, charges and commissions (e.g., letter of credit fees and commitment fees)) of Holdings and its Subsidiaries determined on a consolidated basis for such period, (ii) provision for taxes based on income and foreign withholding taxes for Holdings and its Subsidiaries determined on a consolidated basis for such period, (iii) all depreciation and amortization expense of Holdings and its Subsidiaries determined on a consolidated basis for such period, (iv) the amount of all Transaction Expenses for such period that are approved by the Arrangers, (v) the amount of all non-cash deferred compensation expense of Holdings and its Subsidiaries determined on a consolidated basis for such period resulting from the issuance of Stock or Stock Equivalents to former or current directors, officers or employees of Holdings or any Subsidiary of Holdings, or the exercise of such Stock Equivalents, (vi) the amount of all non-cash charges relating to the impairment or write-down of fixed assets, intangible assets (other than Accounts) or goodwill for such period, (vii) the amount of all other non-cash charges of Holdings and its Subsidiaries determined on a consolidated basis for such period, excluding any non-cash charge relating to a write-down, write off or reserve with respect to Accounts and inventory, (viii) the amount of all management fees and out-of-pocket expenses paid to the Sponsor during such period to the extent permitted pursuant to subsections 5.6(f) and (g), (ix) any losses from sales of assets for such period other than inventory sold in the Ordinary Course of Business, (x) any extraordinary cash losses for such period, (xi) currency translation non-cash losses for such period related to currency remeasurements (including any loss resulting from Rate Contracts for currency exchange risk), (xii) any unrealized non-cash losses for such period in connection with any hedging agreements, (xiii) all fees and expenses incurred for such period in connection with Permitted Acquisitions and approved by Agent, (xiv) all unusual losses, charges or expenses for such period, provided that no more than $1,000,000 in the aggregate during the term of this Agreement may be added back pursuant to this clause (xiv), and (xv) any fees and expenses incurred for such period in connection with the initial public offering of voting common Stock of Holdings (including fees and expenses incurred in connection with an unconsummated initial public offering of such Stock), including, without limitation, fees and expenses incurred in connection with the Second Amendment and the termination fee with respect to the Management Agreement paid in accordance with the Second Amendment, and (B) subtracting therefrom (to the extent not otherwise deducted in determining Consolidated Net Income for such period) the amount of (i) all cash payments and cash charges made during such period relating to any non-cash charges taken in a previous period pursuant to preceding clause (A)(vii), (ii) any gains from sales of assets for such period other than inventory sold in the Ordinary Course of Business, (iii) any extraordinary cash gains for such period, (iv) any non-cash income or gains for such period (including any non-cash from the cancellation of Indebtedness), (v) currency

 

3

 

translation gains for such period related to currency remeasurements (including any net gain resulting from Rate Contracts for currency exchange risk), (vi) any unrealized gains for such period in connection with any hedging agreements and (vii) solely for purposes of calculating the Interest Coverage Ratio for such period, all cash interest income for such period. For the avoidance of doubt, it is understood and agreed that, to the extent any amounts are excluded from Consolidated Net Income by virtue of the proviso to the definition thereof contained herein, add backs to Consolidated Net Income in determining Consolidated EBITDA as provided above shall be limited (or denied) in a fashion consistent with the proviso to the definition of Consolidated Net Income contained herein. Notwithstanding anything to the contrary contained above, for purposes of determining Consolidated EBITDA for any Test Period which ends prior to the first anniversary of the Closing Date, Consolidated EBITDA for all portions of such period occurring prior to the Closing Date shall be calculated in accordance with the definition of Test Period contained herein.

 

d.     Section 11.1 of the Credit Agreement is hereby amended by adding the following definition thereto in appropriate alphabetical order:

 

“Second Amendment” means that certain Consent and Second Amendment to First Lien Credit Agreement dated as of December 12, 2011 by and among Borrower, the other Credit Parties, Agent and the Lenders party thereto.

 

4.             Conditions.  The effectiveness of this Amendment is subject to the satisfaction of the following conditions precedent or concurrent:

 

a.             the execution and delivery of this Amendment by each Credit Party, Agent and the Required Lenders;

 

b.             the consummation of the Gundle IPO and, concurrently therewith, the repayment of all or a portion of the Second Lien Indebtedness and, to the extent the Second Lien Indebtedness is repaid in full, all or a portion of the aggregate outstanding principal balance of Revolving Loans (without a reduction of the Revolving Loan Commitment), in each case, with the cash proceeds of the Gundle IPO (such proceeds net of all fees, costs and expenses incurred in connection with the Gundle IPO, including, but not limited to, the Management Agreement Termination Fee); provided, in the event (i) the Gundle IPO is consummated but the Second Lien Indebtedness is not repaid in full and the Second Lien Indebtedness Documents and all commitments to lend thereunder are not concurrently terminated therewith, the Borrower shall have delivered to Agent a copy of a duly executed and effective amendment to the Second Lien Credit Agreement substantially conforming to this Amendment and otherwise being in form and substance reasonably satisfactory to Agent or (ii) the Gundle IPO is not consummated, this Amendment shall nonetheless take effect solely with respect to the amendments set forth in Sections 3(a), 3(b) and 3(d) and the amendment to the definition of “Consolidated EBITDA” set forth in Section 3(c) (such amended provisions, the “Specified Amendments”) (but not with respect to Section 2 hereof or any other amendment set forth in Section 3) upon such time as (y)

 

4

 

the other conditions precedent or concurrent set forth in this Section 4 shall have been satisfied and (z) the Borrower shall have delivered to Agent a copy of a duly executed and effective amendment to the Second Lien Credit Agreement substantially conforming to the Specified Amendments and otherwise being in form and substance reasonably satisfactory to Agent;

 

c.             the truth and accuracy of the representations and warranties contained in Section 5 hereof; and

 

d.             no Default or Event of Default shall have occurred and be continuing or arise as a direct result of the effectiveness of this Amendment.

 

5.             Representations and Warranties.   Each Credit Party hereby represents and warrants to Agent and each Lender as follows:

 

a.             the representations and warranties made by such Credit Party contained in the Loan Documents are true and correct in all material respects (without duplication of any materiality qualifier contained therein) as of the date hereof, except to the extent such representation or warranty expressly relates to an earlier date (in which event such representations and warranties were true and correct in all material respects (without duplication of any materiality qualifier contained therein) as of such earlier date;

 

b.             such Credit Party is a corporation or limited liability company, duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation, as applicable;

 

c.             such Credit Party  has the power and authority to execute, deliver and perform its obligations under this Amendment and the Credit Agreement, as amended hereby;

 

d.             the execution, delivery and performance by such Credit Party of this Amendment and the Credit Agreement, as amended hereby, and the incurrence of the additional indebtedness, liabilities and other obligations of such Credit Party hereunder have been duly authorized by all necessary action;

 

e.             this Amendment and the Credit Agreement, as amended hereby, constitutes the legal, valid and binding obligation of such Credit Party, enforceable against such Person in accordance with their terms, except as enforceability may be limited by applicable bankruptcy, insolvency, or similar laws affecting the enforcement of creditor’s rights generally or by equitable principles relating to enforceability;

 

f.              the execution, delivery and performance by each of the Credit Parties of this Amendment have been duly authorized by all necessary action, and do not and will not: (a) contravene the terms of any of that Person’s Organization Documents; (b) conflict with or result in any breach or contravention of, or result in the creation of any Lien under, any document evidencing any material Contractual Obligation to which such Person is a party or any material order, injunction, writ or decree of any Governmental Authority to which such Person or its Property is subject; or (c) violate any material Requirement of Law in any material respect.; and

 

5

 

g.             no Default or Event of Default exists or shall arise as a direct result of the effectiveness of this Amendment.

 

6.             No Modification.  Except as expressly set forth herein, nothing contained herein shall be deemed to constitute a waiver of compliance with any term or condition contained in the Credit Agreement or any of the other Loan Documents or constitute a course of conduct or dealing among the parties.  Except as expressly stated herein, the Agent and Lenders reserve all rights, privileges and remedies under the Loan Documents.  Except as amended or consented to hereby, the Credit Agreement and other Loan Documents remain unmodified and in full force and effect.  All references in the Loan Documents to the Credit Agreement shall be deemed to be references to the Credit Agreement as amended and waived hereby.

 

7.             Counterparts.  This Amendment may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Signature pages may be detached from multiple separate counterparts and attached to a single counterpart.  Delivery of an executed signature page of this Amendment by facsimile transmission or Electronic Transmission shall be as effective as delivery of a manually executed counterpart hereof.

 

8.             Successors and Assigns.  The provisions of this Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided that none of the Credit Parties may assign or transfer any of its rights or obligations under this Amendment without the prior written consent of the Agent.

 

9.             Further Assurance.  Borrower hereby agrees from time to time, as and when requested by the Agent or Lender, to execute and deliver or cause to be executed and delivered, all such documents, instruments and agreements and to take or cause to be taken such further or other action as the Agent or Lender may reasonably deem necessary or desirable in order to carry out the intent and purposes of this Amendment, the Credit Agreement and the Loan Documents.

 

10.           Governing Law and Jurisdiction.

 

(a)           Governing Law.  The laws of the State of New York  shall govern all matters arising out of, in connection with or relating to this Amendment, including, without limitation, its validity, interpretation, construction, performance and enforcement (including, without limitation, any claims sounding in contract or tort law arising out of the subject matter hereof and any determinations with respect to post-judgment interest) (without regard to conflicts of law principles (other than Sections 5-1401 and 5-1402 of the New York General Obligations Law)).

 

(b)           Submission to Jurisdiction.  Any legal action or proceeding with respect to this Amendment shall be brought exclusively in the courts of the State of New York located in the City of New York, Borough of Manhattan, or of the United States of America sitting in the Southern District of New York and, by execution and delivery of this Amendment, each Credit

 

6

 

Party hereby accepts for itself and in respect of its property, generally and unconditionally, the jurisdiction of the aforesaid courts.  The parties hereto hereby irrevocably waive any objection, including any objection to the laying of venue or based on the grounds of forum non conveniens, that any of them may now or hereafter have to the bringing of any such action or proceeding in such jurisdictions.

 

(c)           Service of Process.  Each Credit Party hereby irrevocably waives personal service of any and all legal process, summons, notices and other documents and other service of process of any kind and consents to such service in any suit, action or proceeding brought in the United States of America with respect to or otherwise arising out of or in connection with this Agreement by any means permitted by applicable Requirements of Law, including by the mailing thereof (by registered or certified mail, postage prepaid) to the address of such Person specified in the Credit Agreement (and shall be effective when such mailing shall be effective, as provided therein).  Each Credit Party agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

(d)           Non-Exclusive Jurisdiction.  Nothing contained in this Section 10 shall affect the right of Agent to serve process in any other manner permitted by applicable Requirements of Law or commence legal proceedings or otherwise proceed against any Credit Party in any other jurisdiction.

 

(e)           Waiver of Jury Trial.  THE PARTIES HERETO, TO THE EXTENT PERMITTED BY LAW, WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING ARISING OUT OF, IN CONNECTION WITH OR RELATING TO, THIS AMENDMENT, THE OTHER LOAN DOCUMENTS AND ANY OTHER TRANSACTION CONTEMPLATED HEREBY AND THEREBY. THIS WAIVER APPLIES TO ANY ACTION, SUIT OR PROCEEDING WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE.

 

11.           Severability.  The illegality or unenforceability of any provision of this Amendment or any instrument or agreement required hereunder shall not in any way affect or impair the legality or enforceability of the remaining provisions of this Amendment or any instrument or agreement required hereunder.

 

12.           Reaffirmation. Each of the Credit Parties as debtor, grantor, pledgor, guarantor, assignor, or in other any other similar capacity in which such Credit Party grants liens or security interests in its property or otherwise acts as accommodation party or guarantor, as the case may be, hereby (i) ratifies and reaffirms all of its payment and performance obligations, contingent or otherwise, under each of the Loan Documents to which it is a party (after giving effect hereto) and (ii) to the extent such Credit Party granted liens on or security interests in any of its property pursuant to any such Loan Document as security for or otherwise guaranteed the Borrower’s Obligations under or with respect to the Loan Documents, ratifies and reaffirms such guarantee and grant of security interests and liens and confirms and agrees that such security interests and liens hereafter secure all of the Obligations as amended hereby.  Each of the Credit Parties

 

7

 

hereby consents to this Amendment and acknowledges that each of the Loan Documents remains in full force and effect and is hereby ratified and reaffirmed.  The execution of this Amendment shall not operate as a waiver of any right, power or remedy of the Agent or Lenders, constitute a waiver of any provision of any of the Loan Documents or serve to effect a novation of the Obligations.

 

[Remainder of Page Intentionally Left Blank; Signature Pages Follow]

 

8

 

IN WITNESS WHEREOF, each of the undersigned has executed this Amendment as of the date set forth above.

 

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
GUNDLE/SLT ENVIRONMENTAL, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William F. Lacey
    
	
 
    	
Name:
    	
William   F. Lacey
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
CREDIT PARTIES:
    
	
 
    	
 
    
	
 
    	
GSE   HOLDING, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William F. Lacey
    
	
 
    	
Name:
    	
William   F. Lacey
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
GSE   LINING TECHNOLOGY, LLC
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   William F. Lacey
    
	
 
    	
Name:
    	
William   F. Lacey
    
	
 
    	
Title:
    	
Chief   Financial Officer
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the each of the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
AGENT AND LENDERS:
    
	
 
    	
 
    
	
 
    	
GENERAL ELECTRIC CAPITAL CORPORATION, as Agent   and as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard B. Davidson
    
	
 
    	
Name:
    	
Richard   B. Davidson
    
	
 
    	
Title:
    	
Vice   President
    

 

Second Amendment to First Lien Credit Agreement

 

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
GE CAPITAL FINANCIAL INC., as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Heather-Leigh Glade
    
	
 
    	
Name:
    	
Heather   Leigh-Glade
    
	
 
    	
Title:
    	
Duly   Authorized Signatory
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
JEFFERIES FINANCE LLC, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   E. Joseph Hess
    
	
 
    	
Name:
    	
E.   Joseph Hess
    
	
 
    	
Title:
    	
Managing   Director
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
JEFFERIES LEVERAGED CREDIT PRODUCTS, LLC, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   E. Joseph Hess
    
	
 
    	
Name:
    	
E.   Joseph Hess
    
	
 
    	
Title:
    	
Managing   Director
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
FIFTEENTH   INVESTMENT SPONSOR LIMITED, as a Lender
    
	
 
    	
By:   General Electric Capital Corporation, as Servicer
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard B. Davidson
    
	
 
    	
Name:
    	
Richard   B. Davidson
    
	
 
    	
Title:
    	
Vice   President
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
Nationwide Mutual Insurance Company, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Ronald R. Serpico
    
	
 
    	
Name:
    	
Ronald   R. Serpico
    
	
 
    	
Title:
    	
Authorized   Signatory
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
PennantPark Floating Rate Capital Ltd., as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Arthur Penn
    
	
 
    	
Name:
    	
Arthru   Penn
    
	
 
    	
Title:
    	
CEO
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, each of the undersigned has executed this Amendment as of the date set forth above.

 

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
GUNDLE/SLT ENVIRONMENTAL., INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ William F. Lacey
    
	
 
    	
Name:
    	
William F. Lacey 
    
	
 
    	
Title:
    	
Chief Financial Officer 
    
	
 
    	
 
    
	
 
    	
CREDIT PARTIES:
    
	
 
    	
 
    
	
 
    	
GSE HOLDING INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ William F. Lacey
    
	
 
    	
Name:
    	
William F. Lacey 
    
	
 
    	
Title:
    	
Chief Financial Officer 
    
	
 
    	
 
    
	
 
    	
GSE LINING TECHNOLOGY, LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ William F. Lacey
    
	
 
    	
Name:
    	
William F. Lacey 
    
	
 
    	
Title:
    	
Chief Financial Officer 
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the each of the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
AGENT AND LENDERS:
    
	
 
    	
 
    
	
 
    	
GENERAL ELECTRIC CAPITAL CORPORATION, as Agent and as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard B. Davidson
    
	
 
    	
Name:
    	
Richard B. Davidson, Vice President
    
	
 
    	
Title:
    	
Duly Authorized Signatory
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

 

	
 
    	
FIFTEENTH INVESTMENT SPONSOR LIMITED, as a   Lender
    
	
 
    	
By: General Electric Capital Corporation, as Servicer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard B. Davidson
    
	
 
    	
Name:
    	
Richard B. Davidson, Vice President
    
	
 
    	
Title:
    	
Duly Authorized Signatory
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

 

	
 
    	
GE CAPITAL FINANCIAL INC., as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Heather-Leigh Glade
    
	
 
    	
Name:
    	
Heather-Leigh Glade
    
	
 
    	
Title:
    	
Duly Authorized Signatory
    

 

Second Amendment to First Lien Credit Agreement

 

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
JEFFERIES FINANCE LLC, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ E. Joseph Hess
    
	
 
    	
Name:
    	
E. Joseph Hess
    
	
 
    	
Title:
    	
Managing Director
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
JFIN FUNDING LLC, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ E. Joseph Hess
    
	
 
    	
Name:
    	
E. Joseph Hess
    
	
 
    	
Title:
    	
Managing Director
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
Nationwide Mutual Insurance Company, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ronald R. Serpico
    
	
 
    	
Name:
    	
Ronald R. Serpico
    
	
 
    	
Title:
    	
Authorized Signatory
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
PennantPark Floating Rate Capital Ltd., as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Arthur Penn
    
	
 
    	
Name:
    	
Arthur Penn
    
	
 
    	
Title:
    	
CEO
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
Black Diamond CLO 2005-1 LTD.
    
	
 
    	
By: Black Diamond CLO 2005-1 Adviser, L.L.C.,
    
	
 
    	
As Its Collateral Manager,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen H. Deckoff
    
	
 
    	
Name:
    	
Stephen H. Deckoff
    
	
 
    	
Title:
    	
Managing Principal
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
Black Diamond CLO 2006-1 (CAYMAN) LTD.
    
	
 
    	
By: Black Diamond CLO 2006-1 Adviser, L.L.C.,
    
	
 
    	
As Its Collateral Manager,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen H. Deckoff
    
	
 
    	
Name:
    	
Stephen H. Deckoff
    
	
 
    	
Title:
    	
Managing Principal
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
Black Diamond CLO 2005-2 LTD.
    
	
 
    	
By: Black Diamond CLO 2005-2 Adviser, L.L.C.,
    
	
 
    	
As Its Collateral Manager,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen H. Deckoff
    
	
 
    	
Name:
    	
Stephen H. Deckoff
    
	
 
    	
Title:
    	
Managing Principal
    

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
GSC Capital Corp. Loan Funding 2005-1
    
	
 
    	
By:
    	
GSC Acquisition Holdings, L.L.C.,
   as its Collateral Manager
    
	
 
    	
By:
    	
GSC MANAGER, LLC, in its capacity as Manager
    
	
 
    	
By: 
    	
BLACK DIAMOND CAPITAL MANAGEMENT,
    
	
 
    	
 
    	
L.L.C., in its capacity as Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen H. Deckoff
    
	
 
    	
Name:
    	
Stephen H. Deckoff
    
	
 
    	
Title:
    	
Managing Principal
    
				

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
GSC Partners CDO Fund VII, Limited
    
	
 
    	
By:
    	
GSC Acquisition Holdings, L.L.C.,
   as its Collateral Manager
    
	
 
    	
By:
    	
GSC MANAGER, LLC, in its capacity as Manager
    
	
 
    	
By: 
    	
BLACK DIAMOND CAPITAL MANAGEMENT,
    
	
 
    	
 
    	
L.L.C., in its capacity as Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen H. Deckoff
    
	
 
    	
Name:
    	
Stephen H. Deckoff
    
	
 
    	
Title:
    	
Managing Principal
    
				

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
GSC Group CDO Fund VIII, Limited
    
	
 
    	
By:
    	
GSC Acquisition Holdings, L.L.C.,
   as its Collateral Manager
    
	
 
    	
By:
    	
GSC MANAGER, LLC, in its capacity as Manager
    
	
 
    	
By: 
    	
BLACK DIAMOND CAPITAL MANAGEMENT,
    
	
 
    	
 
    	
L.L.C., in its capacity as Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen H. Deckoff
    
	
 
    	
Name:
    	
Stephen H. Deckoff
    
	
 
    	
Title:
    	
Managing Principal
    
				

 

Second Amendment to First Lien Credit Agreement

 

 

IN WITNESS WHEREOF, the undersigned has executed this Amendment as of the date set forth above.

 

	
 
    	
ING CAPITAL LLC, as a Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Andrew C. Sepe
    
	
 
    	
Name:
    	
Andrew C. Sepe
    
	
 
    	
Title:
    	
Director
    

 

Second Amendment to First Lien Credit Agreement

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