Document:

Exhibit

Exhibit 10.1

 
2017 Executive Cash Bonus Award Program
 

General
 
At Adamas Pharmaceuticals, our compensation practices are designed to:
		
	•
	Attract and retain top talent

		
	•
	Link compensation to organizational, project/team/department and individual performance

		
	•
	Align employees with stockholders

		
	•
	Ensure internal fairness and support our core values and culture

 
This 2017 Cash Bonus Award Program, or “Bonus Program,” is a discretionary element of our compensation system that links compensation to the achievement of corporate goals, individual and project/team accomplishments, competencies, and how we live our values. Together these elements are key to our company’s success and strong culture. 
 
Each year, our Board of Directors will establish the corporate goals.  Each participant will have manager1-approved project goals, individual goals, and/or non-project/individual goals.  At the conclusion of each year, the Board of Directors in its sole discretion will determine whether and to what extent our corporate goals have been achieved, whether there will be cash bonus awards paid out, and the bonus pool amount that will be available to pay bonuses to participants in this Bonus Program.
 
Performance for individuals will be assessed in the performance management process and will be a combination of goal achievement and overall performance. Any awards are subject to standard deductions and withholdings.
 
Effective Date
 
This Bonus Program covers the period of January 1, 2017, to December 31, 2017.  It contains the entire understanding between the employee and the Company on this subject, and supersedes all prior bonus compensation programs of the Company and all other previous oral or written statements to the employee regarding a potential cash bonus award. The Company reserves the right to modify any of the provisions of this Bonus Program at any time. This Bonus Program may be modified only in writing signed by a Company officer.

___________________________________________
1 In the case of executive officers, references to “manager” in this Bonus Program shall mean the Compensation Committee or the Board upon recommendation of the Compensation Committee.

1

Exhibit 10.1

Eligibility
 
All regular employees whose employment commenced prior to October 1 of 2017, and work at least 20 hours per week are eligible for participation in the Bonus Program pursuant to its terms.  Awards will be pro-rated for employees with a start date after January 1, 2017.  Temporary and part-time employees who work less than 20 hours per week and consultants are not eligible to participate.
 
Bonus Process
 
Each year, our Board of Directors (the “Board”) will approve the corporate goals for the entire Company.  Each year, each participant also will receive written objectives, including project goals, individual goals, and/or non-project/individual goals, from their manager.  It is the responsibility of both the participant and his or her supervisor to ensure such written objectives are set. 
 
After the conclusion of each calendar year, the Board will determine whether and to what extent our corporate goals have been achieved, whether there will be cash bonus awards paid out, and the pool that is available for potential distribution to employees under this Bonus Program. 
 
After the conclusion of each calendar year, performance for individuals will be assessed in the performance management process and will be a combination of goal achievement and overall performance.  Managers then will determine the amount of bonus awards, if any, for each of their direct reports who are participants in this Bonus Program and these payouts will be approved by the Board (or as delegated to the Compensation Committee).
 
No cash bonus award is considered earned under this Bonus Program until the time that such award is approved by the Board (or as delegated to the Compensation Committee).  Further it is a precondition to earning any bonus under this Bonus Program that the participant has fully complied with all anti-trust laws, the Company’s ethical standards, and any other applicable Company policies; accordingly, if a participant is found to have violated any of these items, any cash bonus award previously paid hereunder is subject to recoupment by the Company.  
 
Threshold and Maximum Payouts

The Company must achieve 70% of corporate goals, as determined by the Board in their sole discretion, in order for any bonus pool to be created and approved by the Board.  The maximum payout will vary year-to-year but will be determined by the Board based on the Company’s goals and escalators in the case of accomplishment of stretch goals.
 
Target bonus percentages are based on job position in the context of the employment marketplace. (See table below).  The target award serves as a standardized reference point for the maximum percentage of base pay an employee potentially could receive as a bonus payment if: (1) the Board decides to create a bonus pool for the Company’s employees for that year; (2) the Board determines that 100% of corporate goals are met by the Company; and, (3) individual performance for the employee as determined by their manager is 100%. It is understood that 

2

Exhibit 10.1

Company management will take the pool of money available for all cash bonus payouts for that year and apply performance-based discretion in allocating the cash bonus awards among participants, and that no participants are guaranteed to receive their target bonus even if the Company meets all of its goals and the participant’s performance is rated at 100% in the review process. 
 
	
		
	Salary Band
	Target Award
% of Base Pay

	CEO
	55%

	CMO/CBO-GC/CCO
	40%

	CFO
	35%

	SVP
	30%

 
Performance Modifier Guidelines
 
The target bonus is intended to be first modified by corporate performance based on corporate goal achievement as determined by the Board, then by individual performance using the ranges below.  The performance rating will be assessed as a combination of goal achievement and overall performance.  The Company shall decide each participant’s performance rating in its sole discretion.

	
		
	Performance Rating
	Individual Performance Modifier
Guidelines

	Exceeds Expectations
	110% - 150%

	Meets Expectations
	70% -110%

	Almost Meets Expectations
	0 - 50%

	Does Not Meet Expectations
	0

 
Timing of Awards
 
As described above, awards are determined each year based on corporate performance as determined by the Board and individual performance as assessed by managers in our performance management process.  Awards, if any, will typically be determined and paid by the end of March of the year following the end of the calendar year, subject to the discretion of the Board as noted above.  Any awards are subject to standard deductions and withholdings.
 
No bonus amounts are guaranteed and all bonuses must be earned in accordance with the terms of this Bonus Program. Whether and how much of a cash bonus award has been earned, is in the sole discretion of the Company.
 
Bonus Awards upon Termination of Employment
 
In the event that a Bonus Program participant’s employment has been terminated (either by the Company or by the employee) for any reason prior to the date any bonus is earned (or as stated above until such time that the award is approved by the Board), the participant will not be entitled to any cash bonus award.

3

Exhibit 10.1

Bonus Award Disputes
 
The Company’s Chief Financial Officer, Chief Business Officer/General Counsel and SVP of Human Resources will review and decide on any disputes arising under this Bonus Program. Any employee with an issue related to this Bonus Program shall provide a written request for review to the SVP, Human Resources within 15 days of the cash bonus award payout that is in dispute. All decisions made by the CFO, Chief Business Officer/General Counsel and SVP, HR are final and binding.
 
Legal and Ethical Standards
 
No employee shall attempt to earn a cash bonus award by engaging in any conduct which violates laws or regulations, the Company’s policies or procedures including healthcare compliance policies & procedures, or the Company’s ethical standards.
 
An employee shall not pay, offer to pay, assign or give any part of his or her cash bonus award, compensation or anything else of value to any agent, customer, supplier or representative of any customer or supplier, or to any other person, as an inducement or reward for direct or indirect assistance in earning a cash bonus.
 
Any infraction of this policy or of recognized ethical standards, will subject the employee to disciplinary action up to and including termination of employment and revocation of any cash bonus award under this Bonus Program to which the employee otherwise would be entitled.
 
Nothing in this Bonus Program is intended to alter the at-will nature of the employee’s employment, that is, the employee’s right or the Company’s right to terminate the employee’s employment at will, at any time with or without cause, and with or without advance notice.

4EIGHTH
AMENDMENT TO CREDIT AND SECURITY AGREEMENT

 

This
Eighth Amendment to Credit and Security Agreement (this “Eighth Amendment”), dated as of March 30, 2017, is
made by and among COMMAND SECURITY CORPORATION, a New York corporation (“CSC” or “Borrower”),
and WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association (“Wells Fargo”).

 

WITNESSETH:

 

WHEREAS,
the Borrower and Wells Fargo are parties to a certain Credit and Security Agreement dated as of February 12, 2009 (as amended
by that certain Amendment to Credit and Security Agreement dated as of December 1, 2009 (the “First Amendment”),
that certain Second Amendment to Credit and Security Agreement dated as of October 18, 2011 (the “Second Amendment”),
that certain Third Amendment to Credit and Security Agreement dated as of November 6, 2012, that certain Fourth Amendment to Credit
and Security Agreement dated as of June 30, 2014 (the “Fourth Amendment”), that certain Fifth Amendment to
Credit and Security Agreement dated as of November 13, 2015, that certain Sixth Amendment to Credit and Security Agreement dated
as of February 12, 2016, that certain Seventh Amendment to Credit and Security Agreement dated as of October 12, 2016, (the “Seventh
Amendment”, and as further amended, supplemented and in effect, collectively, the “Credit Agreement”);
and

 

WHEREAS,
the Borrower has requested that Wells Fargo further modify and amend certain terms and conditions of the Credit Agreement; and

 

WHEREAS,
the Wells Fargo has agreed to further modify and amend certain terms and conditions of the Credit Agreement, all as provided herein.

 

NOW,
THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained, it is agreed as follows:

 

	1.	Defined
    Terms. Capitalized terms used in this Eighth Amendment which are defined in the Credit Agreement shall have the same meanings
    as defined therein, unless otherwise defined herein.
	 	 
	2.	Amendment
    to Recitals. The Recitals paragraph on page 1 of the Credit Agreement is hereby amended by deleting the reference to “$20,000,000”
    where it appears and substituting “$27,500,000” in its stead.
	 	 
	3.	Amendments
    to Section 1. 

 

	 	(a)	Section
    1.1(a) of the Credit Agreement is hereby amended by deleting the reference to “$20,000,000” where it appears in
    subclause (i) and substituting “$27,500,000” in its stead.
	 	 	 
	 	(b)	Section
    1.1(b) of the Credit Agreement (for avoidance of doubt, as most recently amended by the Seventh Amendment) is hereby amended
    by deleting “March 31, 2017” where it appears and by substituting “March 31, 2020” in its stead.

 

    	1

    	 

    

 

	 	(c)	Section
    1.2(a) of the Credit Agreement (for avoidance of doubt, as most recently amended by the Fourth Amendment) is hereby deleted
    in its entirety and the following substituted in its stead:
	 	 	 
	 	 	“(a)      Borrowing
    Base. The borrowing base (the “Borrowing Base”) is an amount equal to:
	 	 	 
	 	 	             (i)       85%
    or such lesser percentage of Eligible Billed Accounts as Wells Fargo in its reasonable commercial judgment may deem appropriate,
    plus
	 	 	 
	 	 	             (ii)       the
    lesser of (a) $14,500,000, and (b) 75% or such lesser percentage of Eligible Unbilled Accounts as Wells Fargo in its reasonable
    commercial judgment may deem appropriate, less
	 	 	 
	 	 	             (iii)       the
    Borrowing Base Reserve, less
	 	 	 
	 	 	             (iv)       the
    outstanding amount of any Indebtedness of Borrower that is not otherwise described in this Section 1 and that is then due
    and owing to Wells Fargo, including Indebtedness that Wells Fargo in its sole discretion finds on the date of determination
    to be equal to Wells Fargo’s net credit exposure with respect to any swap, derivative, foreign exchange, hedge, deposit,
    treasury management or similar transaction or arrangement extended to Borrower by Wells Fargo, and any Indebtedness owed by
    Borrower to Wells Fargo Merchant Services, L.L.C., but excluding the total of all transactions charged to all Cards (as defined
    in the Credit Card Agreement) outstanding at any time under the Credit Card Agreement, provided that the Indebtedness described
    in this subsection (iv) shall include, to the extent the Borrower is obligated by the Credit Card Agreement to reimburse the
    Lender therefor, all costs and expenses, including any attorney’s fees, incurred by the Lender in enforcing the Credit
    Card Agreement.
	 	 	 
	 	 	Notwithstanding
    the foregoing, at no time shall the outstanding Advances supported by Eligible Foreign Accounts exceed $2,975,000.”

 

	 	(d)	Section
    1.6(f) of the Credit Agreement (for avoidance of doubt, as most recently amended by the Second Amendment) is hereby deleted
    in its entirety, and the following substituted in its stead:
	 	 	 
	 	 	            “(f)      Line
    of Credit Termination and/or Reduction Fees. If (i) Wells Fargo terminates the Line of Credit during a Default Period,
    or if (ii) Borrower terminates the Line of Credit on a date prior to the Maturity Date, or if (iii) Borrower and Wells Fargo
    agree to reduce the Maximum Line Amount, then Borrower shall pay Wells Fargo as liquidated damages a termination or reduction
    fee in an amount equal to a percentage of the Maximum Line Amount (or the reduction of the Maximum Line Amount, as the case
    may be) calculated as follows: (A) one and one-half percent (1.50%) if the termination or reduction occurs on or before the
    first anniversary of the Eighth Amendment Effective Date; (B) one-half percent (0.50%) if the termination or reduction occurs
    after the first anniversary of the Eighth Amendment Effective Date, but on or before the second anniversary of the Eighth
    Amendment Effective Date; and (C) one quarter of one percent (0.25%) if the termination or reduction occurs after the second
    anniversary of the Eighth Amendment Effective Date.”

 

    	2

    	 

    

 

	 	(e)	Section
    1.9(a) of the Credit Agreement is hereby amended by deleting the reference to “$3,000,000” where it appears and
    substituting “$1,500,000” in its stead.

 

	4.	Amendments
    to Section 5. 

 

	 	(a)	Section
    5.1(b) of the Credit Agreement is hereby amended by inserting the following provision at the end thereof:
	 	 	 
	 	 	“Simultaneously
    with the delivery of the monthly financial statement and the Compliance Certificate, Lead Borrower shall provide Wells Fargo
    with a report which evidences the Unbilled Account Variance.”
	 	 	 
	 	(b)	Section
    5.2(a) of the Credit Agreement (for avoidance of doubt, as most recently amended by the Seventh Amendment) is hereby deleted
    in its entirety, and the following substituted in its stead:
	 	 	 
	 	 	“(a)
    Reserved.”
	 	 	 
	 	(c)	Section
    5.2 of the Credit Agreement is hereby amended by adding the following provision as a new Section 5.2(d):

 

“(d)
Fixed Charge Coverage Ratio. Commencing month ending March 31, 2017 and on the last day of each month thereafter, Borrower
shall have a Fixed Charge Coverage Ratio, measured on a trailing twelve (12) month-end basis, of at least the required amount
set forth in the following table for the applicable period set forth opposite thereto:

 

	Applicable
    Ratio	 	Trailing
    twelve (12) month period ending 
	 	 	 
	1.10
    :1.00	 	March
    31, 2017
	1.15
    :1.00	 	April
    30, 2017
	1.20
    :1.00	 	May
    31, 2017
	1.25
    :1.00	 	June
    30, 2017 and each month thereafter

 

    	3

    	 

    

 

	 	(d)	Section
    5.7 of the Credit Agreement is hereby deleted in its entirety, and the following substituted in its stead: 
	 	 	 
	 	 	               “5.7
    Dividends and Distributions. Borrower shall not declare or pay any dividends (other than dividends payable solely in
    stock of Borrower) on any class of its stock, or make any payment on account of the purchase, redemption or retirement of
    any shares of its stock, or other securities or evidence of its indebtedness or make any distribution regarding its stock,
    either directly or indirectly.”

 

	 	(e)	By
    adding the following provision as a new Section 5.30:
	 	 	 
	 	 	                “5.30
    SEIU Litigation and CSEHWTF Litigation. Borrower shall (i) provide Wells Fargo with periodic updates regarding the
    foregoing litigations, including, but not limited to, the status of negotiations with the plaintiffs and the proposed terms
    of any settlement, and (ii) not settle the SEIU Litigation and the CSEHWTF Litigation for a collective amount in excess of
    $500,000 without the prior consent of Wells Fargo (each such settlement amount, a “Permitted Settlement Amount”).
    Any such Permitted Settlement Amount shall constitute Debt permitted by Section 5.4 hereof.”

 

	5.	Amendments
    to Exhibit A. Exhibit A of the Credit Agreement is hereby amended as follows:

 

	 	(a)	The
    definition of “Borrowing Base Reserve” (for avoidance of doubt, as most recently amended by the First Amendment)
    is hereby deleted in its entirety and the following substituted in its stead:
	 	 	 
	 	 	““Borrowing
    Base Reserve” means, as of any date of determination, an amount (including without limitation, the Credit Card Reserve
    Amount) or a percent of a specified category or item that Wells Fargo deems necessary in its reasonable business judgment
    from time to time to reduce availability under the Borrowing Base (a) to reflect events, conditions, or risks which adversely
    affect the assets, business or prospects of Borrower, or the Collateral or its value, or the enforceability, perfection or
    priority of Wells Fargo’s Security Interest in the Collateral, as the term “Collateral” is defined in this
    Agreement, or (b) to reflect Wells Fargo’s reasonable judgment that any collateral report or financial information relating
    to Borrower and furnished to Wells Fargo may be incomplete, inaccurate or misleading in any material respect. For avoidance
    of doubt, each of the Payroll Reserve, the Leal Litigation Settlement Reserve, the SEIU Litigation and CSEHWTF Litigation
    Reserve, and the Dilution Reserve shall each constitute a Borrowing Base Reserve.”
	 	 	 
	 	(b)	The
    definition of “Daily Three Month LIBOR” is hereby amended by inserting the following provision at the end thereof:
	 	 	 
	 	 	                 “Notwithstanding
    the foregoing, if the rate determined pursuant to the foregoing method is less than zero, Daily Three Month LIBOR for purposes
    of this Agreement shall be zero.”

 

    	4

    	 

    

 

	 	(c)	The
    definition of “Eligible Billed Accounts” is hereby amended as follows:

 

	 	i.	subclause
    (a) (for avoidance of doubt, as most recently amended by the Seventh Amendment) is hereby deleted in its entirety and the
    following substituted in its stead:
	 	 	 
	 		“(a)     That
    portion of Accounts unpaid 90 days or more after the invoice date;”
	 	 	 
	 	ii.	subclause
    (m) (for avoidance of doubt, as most recently amended by the Second Amendment) is hereby deleted in its entirety and the following
    substituted in its stead:
	 	 	 
	 		“(m)     Accounts
    owed by an account debtor, regardless of whether otherwise eligible, to the extent that the aggregate balance of such Accounts
    exceeds 20% of the aggregate amount of all Eligible Accounts, provided however, that Wells Fargo, upon request of the Borrower,
    may, in its sole and absolute discretion, increase such percentage with respect to an account debtor, and if Wells Fargo so
    elects to increase such percentage, Wells Fargo shall promptly notify Borrower of the same;”

 

	 	(d)	The
    definition of “Eligible Unbilled Accounts” is hereby deleted in its entirety, and the following substituted in
    its stead:
	 	 	 
	 	 	“Eligible
    Unbilled Accounts” means all unpaid Accounts of Borrower arising from the performance of services by Borrower, net of
    any credits, that would otherwise qualify as Eligible Billed Accounts except invoices have not been rendered by Borrower to
    the account debtors of such Accounts, but excluding (i) for the period commencing as of the Eighth Amendment Effective Date
    and ending on March 31, 2018, any Account for which an invoice has not been rendered to the account debtor within forty-five
    (45) days of Borrower having performed the services giving rise to such Account, and (ii) for the period commencing April
    1, 2018 and thereafter, any Account for which an invoice has not been rendered to the account debtor within forty (40) days
    of Borrower having performed the services giving rise to such Account.”
	 	 	 
	 	(e)	By
    inserting the following definitions in their respective alphabetical orders:

 

	 	i.	““CSEHWTF
    Litigation” means the litigation which is the subject of the complaint captioned California Service Employees Health
    & Welfare Trust Fund, Mike Garcia, Trustee, Charles Gilchrist, Trustee, David Stillwill, Trustee, Raymond C. Nann, Trustee,
    and Larry T. Smith, Trustee vs. Command Security Corp., a New York Corporation, d/b/a Aviation Safeguards” Case No.
    CV-12-1079 and filed with the United States District Court for the Northern District of California on March 2, 2012.”

 

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	 	ii.	““Dilution
    Reserve” means, as of any date of determination, a reserve established by Wells Fargo in an amount equal to the product
    of (x) the excess of (i) Dilution (expressed as a percentage) for such trailing twelve (12) month period ending as of such
    date, as determined by Wells Fargo pursuant to a field examination which has been approved and accepted by Wells Fargo, over
    (ii) five percent (5.0%), multiplied by (y) the then outstanding balance of Eligible Billed Accounts.”
	 	 	 
	 	iii.	““EBITDA”
    means, with respect to any fiscal period, 
	 	 	 
	 	 	(a)
    Borrower’s Net Income (or loss),
	 	 	 
	 	 	minus
	 	 	 
	 	 	(b)
    without duplication, the sum of the following amounts of Borrower for such period to the extent included in determining consolidated
    net earnings (or loss) for such period:
	 	 	 
	 	 	(i)
    extraordinary gains,
	 	 	 
	 	 	(ii)
    interest income,
	 	 	 
	 	 	plus
	 	 	 
	 	 	(c)       without
    duplication, the sum of the following amounts of Borrower for such period to the extent included in determining consolidated
    net earnings (or loss) for such period:
	 	 	 
	 	 	(i)
    non-cash extraordinary losses,
	 	 	 
	 	 	(ii)Interest
    Expense,
	 	 	 
	 	 	(iii)
    income taxes, and
	 	 	 
	 	 	(iv)
    depreciation and amortization for such period, in each case, determined on a consolidated basis in accordance with GAAP. “

 

	 	iv.	““Eighth
    Amendment” means that certain Eighth Amendment to Credit and Security Agreement by and between the Borrower and Wells
    Fargo dated as of the Eighth Amendment Effective Date.”
	 	 	 
	 	v.	““Eighth
    Amendment Effective Date” means March 31, 2017.”
	 	 	 
	 	vi.	““Excess
    Availability” means the result of (a) (i) collateral availability calculated pursuant to the Borrowing Base limitations
    set forth in Section 1.2, less (ii) the aggregate of the unreimbursed Advances plus the L/C Amount.”

 

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	 	vii.	““Fixed
    Charges” means, with respect to any fiscal period and with respect to Borrower determined on a consolidated basis in
    accordance with GAAP, the sum, without duplication, of (a) Interest Expense accrued (other than interest paid-in-kind, amortization
    of financing fees, and other non-cash Interest Expense) during such period, and (b) principal payments in respect of Debt
    that are required to be paid during such period.”
	 	 	 
	 	viii.	““Fixed
    Charge Coverage Ratio” means, with respect to any fiscal period and with respect to Borrower determined on a consolidated
    basis in accordance with GAAP, the ratio of (a) EBITDA for such period minus unfinanced Capital Expenditures made (to
    the extent not already incurred in a prior period) or incurred during such period, minus all federal, state, and local
    income taxes paid in cash during such period, to (b) Fixed Charges for such period.”
	 	 	 
	 	ix.	““Interest
    Expense” means, for any period, the aggregate of the interest expense of Borrower for such period, determined on a consolidated
    basis in accordance with GAAP.”
	 	 	 
	 	x.	““Leal
    Litigation Settlement Reserve” means a reserve of $700,000 or such other amount as Wells Fargo deems necessary in its
    reasonable business judgment from time to time in connection with a settlement of the Leal Litigation.”
	 	 	 
	 	xi.	““Payroll
    Reserve” means a reserve for payroll obligations of the Borrower (including, without limitation, payroll taxes) in such
    amount as Wells Fargo deems necessary in its reasonable business judgment from time to time, after consultation with the Borrower.”
	 	 	 
	 	xii.	““SEIU
    Litigation” means the litigation which is the subject of the complaint captioned “Marlene Herrera; Edward Lopez;
    and Service Employees International Union, United Service Workers West vs. Command Security Corp., a New York Corporation,
    d/b/a Aviation Safeguards”, Case No. CV 12-4032 and filed with the United States District Court for the Northern District
    of California on July 31, 2012.”
	 	 	 
	 	xiii.	““SEIU
    Litigation and CSEHWTF Litigation Reserve” means a reserve of $300,000 or such other amount as Wells Fargo deems necessary
    in its reasonable business judgment from time to time in connection with a settlement of the SEIU Litigation and the CSEHWTF
    Litigation.”
	 	 	 
	 	xiv.	““Unbilled
    Account Variance” means the variance between the amount of Accounts which the Borrower reported to Wells Fargo as Eligible
    Unbilled Accounts for a subject month and the amount of such Accounts which were subsequently converted to Eligible Billed
    Accounts for such month.”

 

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	6.	Ratification
    of Loan Documents. Except as provided for herein, all terms and conditions of the Credit Agreement and the other Loan
    Documents remain in full force and effect. Borrower hereby ratifies, confirms, and reaffirms all representations, warranties,
    and covenants contained therein and acknowledges and agrees that the Indebtedness, as modified hereby, are and continue to
    be secured by the Collateral. Borrower warrants and represents to Wells Fargo that as of the date hereof, no Event of Default
    has occurred and is continuing. Borrower acknowledges and agrees that Borrower does not have any offsets, defenses, or counterclaims
    against Wells Fargo thereunder, and to the extent that any such offsets, defenses, or counterclaims may exist, Borrower hereby
    WAIVES and RELEASES Wells Fargo therefrom.
	 	 
	7.	Schedules
    and Exhibits.

 

	 	(a)	Exhibit
    B to the Credit Agreement (Premises) is hereby amended and restated as set forth on Exhibit B hereto.
	 	 	 
	 	(b)	Exhibit
    D to the Credit Agreement (Representations and Warranties) is hereby amended and restated as set forth on Exhibit D hereto.
	 	 	 
	 	(c)	Exhibit
    E to the Credit Agreement (Compliance Certificate) is hereby amended and restated as set forth on Exhibit E hereto.
	 	 	 
	 	(d)	Exhibit
    F to the Credit Agreement (Commercial Tort Claims; Permitted Liens; Indebtedness; Guaranties) is hereby amended and restated
    as set forth on Exhibit F hereto.
	 	 	 
	 	(e)	Exhibit
    G to the Credit Agreement (Deposit Accounts) is hereby amended and restated as set forth on Exhibit G hereto.

 

	8.	Eighth
    Amendment Fee. In addition to the other fees described in the Credit Agreement for which the Borrower is obligated to
    pay to Wells Fargo, in consideration of Wells Fargo’s entering into this Eighth Amendment, the Borrower shall pay to
    Wells Fargo a fee (the “Eighth Amendment Fee”) in the amount of Seventy-five Thousand Dollars ($75,000)
    simultaneous with the execution and delivery of this Eighth Amendment to Wells Fargo, which Eighth Amendment Fee shall be
    fully and irrevocably earned by Wells Fargo as of such date, and is non-refundable to the Borrower.
	 	 
	9.	Conditions
    Precedent. This Eighth Amendment shall not be effective until each of the following conditions precedent has been fulfilled
    to the satisfaction of Wells Fargo:

 

	 	(a)	This
    Eighth Amendment shall have been duly executed and delivered by the respective parties thereto, and shall be in full force
    and effect and shall be in form and substance satisfactory to Wells Fargo.

 

    	8

    	 

    

 

	 	(b)	Wells
    Fargo shall have received the documents, instruments and agreements set forth on the closing checklist for this Eighth Amendment.
	 	 	 
	 	(c)	Without
    limiting subclause (b), all action on the part of the Borrower necessary for the valid execution, delivery and performance
    by the Borrower of this Eighth Amendment shall have been duly and effectively taken and evidence thereof reasonably satisfactory
    to Wells Fargo shall have been provided to Wells Fargo. 
	 	 	 
	 	(d)	After
    giving effect to the effectiveness of this Eighth Amendment, Borrower shall have Excess Availability of at least $2,750,000
    as evidenced by calculations provided to and accepted by Wells Fargo.
	 	 	 
	 	(e)	The
    Borrower shall have paid the Eighth Amendment Fee.
	 	 	 
	 	(f)	No
    Event of Default shall have occurred and be continuing.
	 	 	 
	 	(g)	The
    Borrower shall have paid all reasonable and documented costs and expenses of Wells Fargo, including, without limitation, reasonable
    attorneys’ fees in connection with the preparation, negotiation, execution and delivery of this Eighth Amendment as
    well as any outstanding invoices.

 

	10.	Post-Closing
    Matters. The Borrower shall satisfy the post-closing matters set forth on Schedule 1 hereto within the time frames set
    forth on said Schedule 1.
	 	 
	11.	Miscellaneous.

 

	 	(a)	This
    Eighth Amendment may be executed in several counterparts and by each party on a separate counterpart, each of which when so
    executed and delivered shall be an original, and all of which together shall constitute one instrument.
	 	 	 
	 	(b)	This
    Eighth Amendment expresses the entire understanding of the parties with respect to the transactions contemplated hereby. No
    prior negotiations or discussions shall limit, modify, or otherwise affect the provisions hereof.
	 	 	 
	 	(c)	Any
    determination that any provision of this Eighth Amendment or any application hereof is invalid, illegal or unenforceable in
    any respect and in any instance shall not affect the validity, legality, or enforceability of such provision in any other
    instance, or the validity, legality or enforceability of any other provisions of this Eighth Amendment.
	 	 	 
	 	(d)	The
    Borrower warrants and represents that the Borrower has consulted with independent legal counsel of the Borrower’s selection
    in connection with this Eighth Amendment and is not relying on any representations or warranties of Wells Fargo or its counsel
    in entering into this Eighth Amendment.

 

[Remainder
of Page Left Blank Intentionally]

 

    	9

    	 

    

 

IN
WITNESS WHEREOF, each party hereto has executed this Eighth Amendment as a sealed instrument under the laws of the Commonwealth
of Massachusetts through its authorized officer as of the date set forth above.

 

	 	COMMAND
    SECURITY CORPORATION
	 	 	 
	 	By:	/s/
    N. Paul Brost
	 	Name:
    	N.
    Paul Brost
	 	Title:
    	Chief
    Financial Officer
	 	 	 
	 	WELLS
    FARGO BANK,
	 	NATIONAL
    ASSOCIATION 
	 	 	 
	 	By:	/s/
    James A. Kelly
	 	Name:	James
    A. Kelly
	 	Title:	Vice
    President

 

Signature
Page to Eighth Amendment to Credit Agreement

 

    	 

    	 

    

 

Exhibit
B

Premises

 

(see
attached)

 

    	 

    	 

    

 

Exhibit
D

Representations
and Warranties

 

(see
attached)

 

    	 

    	 

    

 

Exhibit
E

Compliance
Certificate

 

(see
attached)

 

    	 

    	 

    

 

Exhibit
F

Commercial
Tort Claims; Permitted Liens;

Indebtedness; Guaranties

 

(see
attached)

 

    	 

    	 

    

 

Exhibit
G

Deposit
Accounts

 

(see
attached)

 

    	 

    	 

    

 

Schedule
1

Post-Closing
Matters

 

	Post-closing
    Requirement	 	Timeframe
	 	 	 
	Satisfactory
    opinion of counsel	 	April
    14, 2017
	 	 	 
	Recent
    Foreign Qualification Certificates for the jurisdictions set forth the Closing Checklist previously provided to Borrower	 	April
    14, 2017

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00269-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00269-of-00352.parquet"}]]