Document:

ras-ex103_8.htm

EXHIBIT 10.3

SEPARATION AGREEMENT 

THIS SEPARATION AGREEMENT (the “Agreement”), entered into as of December 14, 2016, by and between RAIT Financial Trust, a Maryland real estate investment trust (the “Company”), with a principal office in Philadelphia, Pennsylvania, and James J. Sebra (“Executive”).

WHEREAS, Executive has been employed by the Company as the Chief Financial Officer and Treasurer since May 2012; 

WHEREAS, the Company and Executive are parties to that certain Employment Agreement entered into as of August 2, 2012 (the “Employment Agreement”); 

WHEREAS, the Company and the Executive entered into a Binding Memorandum of Understanding (the “MOU”) on September 26, 2016 that memorialized terms relating to Executive’s resignation from his positions with the Company;   

WHEREAS, Executive acknowledges that the Employment Agreement remains in full force and effect, except as modified by the MOU and except as modified by this Agreement; and

WHEREAS, the parties intend to arrange for Executive’s separation from employment with Company and to enter into this Agreement. 

NOW, THEREFORE, intending to be legally bound hereby and in consideration of the mutual promises and obligations expressed herein and other good and valuable consideration, the receipt of which is hereby acknowledged, Executive and Company agree as follows: 

1.Executive’s Resignation. 

(a)Executive shall remain in his current position as CFO of the Company until the later to occur of March 31, 2017 or the filing of the Company’s Form 10-K for the fiscal year ending December 31, 2016 with the U.S. Securities and Exchange Commission (the “Resignation Date”), at which time Executive shall resign from his CFO position and any other positions held by him. In the event the Company hires a new CFO, Executive may resign prior to the Resignation Date, provided, however, that any early resignation shall be at the option and in the sole discretion of the Company. If the Company requires Executive’s service after the Resignation Date, Executive shall work in good faith with the Company to accommodate such request by modifying the Shared Services Agreement entered into by the Company and IRT.    Executive’s salary and benefits will cease on the Resignation Date, except as set forth below.  In accordance with Company policy, Executive will not be paid for any accrued, unused vacation through the Resignation Date but shall be paid any then unpaid salary earned and owing as of the Resignation Date. Executive shall also be reimbursed any unreimbursed business expenses incurred by Executive prior to the Resignation Date in accordance with Company policy.

(b)As of the Resignation Date, Executive will cease to be a director, officer or manager of the Company or its subsidiaries and or its affiliates, as applicable, and shall thereafter have no authority to bind the Company or its subsidiaries or its affiliates.

 

 

(c)Executive’s annual cash bonus and any other award granted to Executive under the RAIT Financial Trust 2012 Incentive Award Plan (the “Plan”) as compensation for performance during fiscal year 2016, if any, shall be determined by the Board of Trustees of the Company, in its sole discretion, and awarded to Executive in a manner consistent with past practices for determining and awarding such bonuses or awards.

(d)In accordance with Section 2(c) of the MOU, in the event that Executive remains in the employ of the Company after December 31, 2016, he shall receive a fixed cash bonus equal to the portion of his 2016 cash bonus, if any, prorated based on the period that Executive was employed by the Company during 2017.  By way of example, if Executive remained in the employ of the Company until March 31, 2017, Executive would be entitled to a fixed cash bonus of 25% of his 2016 cash bonus.  Such bonus shall be paid to Executive no later than June 1, 2017.

(e)In accordance with Section 2(d) of the MOU, all equity awards previously granted to Executive and equity awards to be granted to Executive pending the completion of fiscal year 2016, if any, shall neither terminate nor accelerate upon Executive’s resignation as an employee of the Company, and vesting shall continue to occur in accordance with the applicable vesting schedule. In addition: (i) Executive shall remain entitled to accrued dividends and dividend equivalents on all such equity awards, (ii) options and share appreciation rights (“SARs”) held by Executive may be exercised after vesting through the expiration of the original term of such options and SARs and (iii) Performance Share Unit Awards granted to the Executive in 2015 and 2016 (“PSUs”) shall continue to time vest while remaining subject to the achievement of the relevant performance metrics, in each case as if Executive remained employed by the Company throughout the term. Any performance target for PSUs that is determined based on a subjective evaluation of Executive’s performance by the compensation committee of the Company’s board of trustees shall, for purposes of such PSUs, be computed such that the percentile achievement for such subjective target shall equal the weighted average of the percentiles achieved for the objectively evaluated targets applicable to such PSU.

(f)In recognition that time-vested restricted equity awards granted to Executive shall cease to be subject to service based conditions (as contemplated by Section 1(c)) and will, as a result, be taxable at the time of such cessation, the Company is authorized to withhold a number of common shares having a fair market value sufficient to cover any legally required tax withholdings on such equity awards. The PSUs shall remain subject to the relevant performance metrics and will not be taxable at the time of such cessation. 

2.Agreements and Acknowledgements.

(a)Executive acknowledges that the Employment Agreement remains in full force and effect, except as modified by the MOU and except as modified by this Agreement.  

(b)Executive agrees that he remains subject to Section 5 (and its subsections) of the Employment Agreement relating to Non-Competition, Non-Solicitation, Intellectual Property, Developments and Confidentiality, except that the Company waives (i) the non-competition restriction in Section 5.1(a) of the Employment Agreement as of the Resignation Date, only with respect to Executive’s employment with Independence Realty Trust, Inc. (“IRT”) and (ii) the non-solicitation restrictions in Section 5.1(c) of the Employment Agreement 

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with respect to each of the following named individuals, and with respect to any additional individuals offered positions at IRT with the prior written consent of the Company: Scott Schaeffer, Farrell Ender, Matthew Harker, Michael Kernan, Jason Lynch, Jessica Norman, and Michael Hogentogler.  Executive also agrees that the Company may, without limitation, exercise the rights and remedies referenced in Section 5.4 of the Employment Agreement (captioned “Equitable Relief”) in connection with any breach of any of Executive’s continuing restrictions set forth in Section 5 (and its subsections) of the Employment Agreement, excluding, for clarity, the non-competition and non-solicitation restrictions in Section 5.1(a) and Section 5.1(c), respectively, of the Employment Agreement waived by the Company with respect to Executive’s employment with IRT and solicitation of employees as and to the extent permitted herein. The duration of any applicable restrictions contained in Section 5 of the Employment Agreement (and its applicable subsections) shall begin on the Resignation Date.  

3.General Release By Executive. In accordance with the requirements of the MOU, and in consideration of the benefits set forth in the MOU, Executive agrees to execute a general release in the form attached hereto as Appendix A on, and not earlier than, the Resignation Date.  

4.Return of Company Property. Executive shall deliver, on or before the Resignation Date, all property of the Company to the person designated by the Company to receive the same, including keys, identification cards, the Company’s (and its subsidiaries’ and its affiliates’) credit cards and equipment, such as cellphones, blackberries, computers, records and information belonging to the Company, and any documents, memoranda or files, stored in whatever media, retaining no copies. 

5.Cooperation Agreement. For so long as any applicable indemnification agreements (the “Indemnification Agreements”) remain in effect and Executive is indemnified thereunder, Executive promises to assist the Company with the transition of his job responsibilities to other employees of the Company and its subsidiaries and its affiliates and to provide reasonable cooperation to the Company and its attorneys in connection with any investigations, lawsuits, or other proceedings in which the Company or its employees may become involved, in each case with respect to work performed for the Company or its subsidiaries or its affiliates by Executive prior to the Resignation Date. Executive agrees to comply with the Company’s reasonable requests for information, including, without limitation, with respect to governmental filings and regulatory information requests.   Executive shall not be obligated to incur any out-of-pocket expenses in assisting the Company under this Section 5 unless the Company agrees to reimburse him for such expenses.

6.Consideration Period. 

(a)Executive acknowledges that he has been provided with a period of at least twenty-one (21) calendar days to consider the terms of this Agreement, including the General Release of Claims attached as Appendix A, from the date this Agreement first was presented to him on November 15, 2016.  Executive agrees that any changes to this Agreement, whether material or immaterial, will not restart the running of the 21-day period.

(b)Executive understands that he may take the entire 21-day period to consider this Agreement.  Executive acknowledges that if he signs and returns this Agreement before the end of the consideration period that he will have knowingly and voluntarily waived 

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his right to consider the Agreement for the full consideration period.  He may return this Agreement in less than the full consideration period only if his decision to shorten it was knowing and voluntary and was not induced in any way by the Company.  

7.Indemnification, Litigation and Related Matters.  All applicable Indemnification Agreements and the provisions of the Company’s Directors and Officers liability insurance policies (“D&O Policies”), Declaration of Trust and Bylaws relating to indemnification and advancement of expenses to officers of the Company shall continue to apply to Executive with respect to work performed for the Company by Executive prior to the Resignation Date. In addition, any changes to such provisions subsequent to the Resignation Date that are generally applicable to conduct of officers of the Company occurring prior to the Resignation Date shall apply to Executive. The Company shall continue to maintain liability insurance covering Executive with respect to work performed for the Company by Executive prior to the Resignation Date on the same or substantially similar terms as for any other officer. The Company agrees to keep Executive reasonably apprised of the status of any proceedings that may implicate him or his conduct and/or might give rise to a right to indemnification under any applicable Indemnification Agreements or otherwise, including promptly providing relevant publically available documents such as pleadings and material filings.

8.Effective Date.  This Agreement shall become effective according to its terms immediately upon the Second Closing Date (as defined in that certain Securities and Asset Purchase Agreement, dated September 27, 2016, by and among the Company, RAIT TRS, LLC, Jupiter Communities, LLC, the RAIT Selling Stockholders (as defined therein), IRT and Independence Realty Operating Partnership, LP), except that Executive shall have seven (7) days following execution of the General Release required by Section 3 herein and attached hereto as Appendix A to revoke his consent thereto.  If Executive does not execute the General Release attached hereto as Appendix A on the Resignation Date, as required by Section 4 herein, or if he revokes it, the Company’s obligations to Executive under Sections 2(c) and (d) of the MOU shall immediately cease and the Company will not waive the non-competition restriction in Section 5.1(a) and Section 5.1(c) of the Employment Agreement.  From the date hereof through the Resignation Date, Executive’s obligations under the Employment Agreement shall continue as set forth therein.

9.Revocation Period. The Revocation Period, for purposes of this Agreement, is the seven (7) day period following Executive’s execution of the General Release attached hereto as Appendix A.  Executive acknowledges that he shall have seven (7) days following his execution of the General Release in Appendix A to revoke the Release.  To revoke the Release, Executive, within seven (7) days of his execution of the Release, must deliver, fax or e-mail, or send a letter via overnight deliver to the attention of Scott L.N. Davidson, the Chief Executive Officer of the Company, at RAIT Financial Trust, Two Logan Square, 100 N. 18th Street, 23rd Floor, Philadelphia, PA 19103. If the seventh day is a Sunday or federal holiday, then the document must be delivered, faxed, e-mailed, or sent by over-night delivery service, as applicable, on the following business day. For a revocation to be effective, Executive must have evidence confirming timely receipt by the Company. 

10.Advice to Consult Legal Representative.  The Company recommends that Executive consult with an attorney of his own choosing, at his own expense, with regard to entering into this Agreement.

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11.Executive Certification – Validity of Agreement.  Executive, intending to be legally bound, represents, certifies and acknowledges that he has carefully read this Agreement and has executed it voluntarily and with full knowledge and understanding of its significance, meaning and binding effect and with the advice of counsel.  Executive further declares that he is competent to understand the content and effect of this Agreement and that his decision to enter into this Agreement has not been influenced in any way by fraud, duress, coercion, mistake or misleading information. 

12.Integration.  This Agreement, as well as the agreements referenced herein, contain the entire agreement and understanding between Executive and the Company. This Agreement supersedes all other agreements between Executive and the Company, except those referenced herein.  In the event of any inconsistency between this Agreement and any other agreements between the Executive and the Company, the statements in this Agreement shall control. The following provisions of the Employment Agreement shall survive Executive’s resignation of his employment with the Company to the extent necessary to achieve the intended preservation of any such rights and obligations: (i) Section 5 (captioned “Non-Competition, Non-Solicitation, Intellectual Property and Confidentiality”) and all of its subsections, other than Section 5.1(a) relating to the non-competition restriction and Section 5.1(c) relating to the non-solicitation restriction which the Company waived as and to the extent set forth in Section 2(b) of this Agreement; (ii) Section 6 (captioned “Non-Exclusivity of Rights”); and (iii) Section 7 (captioned “Survivorship”).  

13.Modification.  This Agreement shall not be changed unless in writing and signed by both Executive and the Company.

14.Severability.  If any provision of this Agreement is determined by any court of competent jurisdiction to be invalid or unenforceable, such invalidity or unenforceability shall not affect or impair the validity and enforceability of the other provisions of this Agreement, which shall be considered severable and shall remain in full force and effect. 

15.Headings.  The headings contained in this Agreement are not a part of the Agreement and are included solely for ease of reference.

16.Governing Law.  This Agreement will be construed in accordance with the laws of the Commonwealth of Pennsylvania, which, together with the laws of the United States of America, will control any and all disputes or questions of interpretation arising hereunder.

17.Counterparts.  This Agreement may be executed in two (2) or more counterparts, each of which will be deemed to be an original of this Agreement and all of which, when taken together, will be deemed to constitute one and the same agreement.  This Agreement, to the extent signed and delivered by means of a facsimile machine or by other electronic transmission of a manual signature (by portable document format (.pdf) or other method that enables the recipient to reproduce a copy of the manual signature), shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  Neither party hereto shall raise the use of a facsimile machine or other electronic transmission to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated 

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through the use of a facsimile machine or other electronic transmission as a defense to the formation of a contract and each such party forever waives any such defense. 

[Signature Page Follows] 

 

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IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties have executed the foregoing Agreement as of the date first written above. 

PLEASE READ CAREFULLY. 

		
	
 
	
 

	
/s/ James J. Sebra
	
 

	
James J. Sebra
	
 

	
 
	
 

 

 

RAIT Financial Trust

 

 

		
	
By:
	
/s/ Scott L. N. Davidson

	
Name:
	
Scott L. N. Davidson

	
Title:
	
President

 

 

 

 

 

[Signature Page to Separation Agreement]

 

APPENDIX A

 

GENERAL RELEASE OF CLAIMS

 

This GENERAL RELEASE OF CLAIMS (“Release”) is made by James J. Sebra (“Executive”), in consideration of the promises and mutual covenants contained in the Separation Agreement (the “Separation Agreement”), dated December 14, 2016, by and between Executive and RAIT Financial Trust (the “Company”).

1.General Release of Claims.

(a) Executive and his heirs, executors and administrators (collectively, “Releasors”), intending to be legally bound, hereby release and discharge the Company, and all of the Company’s related parties, including the Company’s subsidiaries and affiliates and its and their officers, trustees, directors, shareholders, employees, agents, other representatives, successors, assigns, heirs, executors, and administrators (hereinafter referred to collectively as “Releasees”), from any and all claims, demands, actions, causes of actions, obligations, judgments, rights, fees, damages, debts, obligations, liabilities, and expenses (inclusive of attorneys’ fees) of any kind whatsoever (collectively, “Claims”), whether known or unknown, from the beginning of time to the date of the Executive’s execution of this Release, including, without limitation, any claims under any federal, state, local, or foreign law, that Releasors may have, have ever had or may in the future have arising out of, or in any way related to the Employee’s hire, benefits, employment, termination, or separation from employment with the Company and any actual or alleged act, omission, transaction, practice, conduct, occurrence, or other matter, including, but not limited to any and all claims:  

	
 
	
(i)
	
arising out of the Employment Agreement (and any prior employment agreements between Executive and the Company or its subsidiaries or its affiliates); 

	
 
	
(ii)
	
under any federal, foreign, state or local laws, including without limitation, the Age Discrimination in Employment Act and the Older Worker Benefit Protection Act, Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq., as amended, the Americans with Disabilities Act, 42 U.S.C. § 12101 et seq., the Employee Retirement Income Security Act, 29 U.S.C. § 1001 et seq., as amended, the Family & Medical Leave Act, 29 U.S.C. § 2601 et seq., the Worker Adjustment and Retraining Notification, 29 U.S.C. § 2101 et seq., the Pennsylvania Human Relations Act, the Philadelphia Fair Employment Ordinance, the Sarbanes-Oxley Act, any regulations promulgated under the foregoing laws, and similar state and local statutes, laws and ordinances;

	
 
	
(iii)
	
of discrimination, harassment or retaliation, whether based on race, color, religion, gender, sex, age, sexual orientation, handicap and/or disability, national origin, whistleblowing or any other legally protected class; 

	
 
	
(iv)
	
except and as to the extent provided for in or contemplated by the MOU and the Separation Agreement, for compensation of any type whatsoever, 

A-1

	
 
		
including but not limited to claims for salary, wages, bonuses, commissions, incentive compensation, vacation, and severance that may be legally waived and released;

	
 
	
(v)
	
under any other statutory, regulatory, common law or other claims of any kind, including without limitation, claims for breach of contract, libel, slander, fraud, wrongful discharge, promissory estoppel, equitable estoppel, misrepresentation, emotional distress, or pain and suffering; and 

	
 
	
(vi)
	
for counsel fees and costs, except insofar as such fees and costs relate to claims and rights excluded from this Release, including as set forth in Section 2 below. 

(b)Releasors’s rights with respect to any and all awards that have been granted or that will be granted to Executive under the Plan shall be governed by Section 1(c) of the Separation Agreement.  

(c)Releasors specifically waive and release any and all claims under Section 2.1(c) of the Employment Agreement.

2.Exclusions.  Notwithstanding any other provision of this Release, the following are not barred by the Release and are excluded from the Release:  (a) claims relating to the validity of this Agreement; (b) claims by either party to enforce its or his rights under this Agreement and/or under the MOU (as defined in the Separation Agreement); (c) claims that legally may not be waived; (d) claims for vested benefits under any Company retirement plan; (e) Executive’s rights and claims to, and relating to, indemnification and directors’ and officers’ liability insurance under the Company’s Bylaws or charter, any indemnification agreement to which Executive is a party or beneficiary or applicable law, as a result of having served as an officer and/or director of the Company of any of its subsidiaries or affiliates and (f) claims for workers’ compensation benefits.  In addition, this Release does not bar Executive’s right to file an administrative charge with the Equal Employment Opportunity Commission (the “EEOC”) or analogous state/local agency, prevent Executive from reporting to any government agency any concerns Executive may have regarding the Company’s practices, or preclude Executive from testifying, assisting or participating in an investigation, hearing or proceeding conducted by the EEOC or any other federal, state or local agency.   

Intending to be legally bound, agreed to and executed on this ________________. 

 

 

		
	
 
	
 

	
 
	
 

	
 James J. Sebra
	
 

	
 
	
 

 

A-2Exhibit

Exhibit 10.1

SECOND AMENDMENT TO CREDIT AGREEMENT
THIS SECOND AMENDMENT TO CREDIT AGREEMENT dated as of December 16, 2016 (this “Amendment”) is entered into among SPX FLOW, Inc., a Delaware corporation (the “Parent Borrower”), the Foreign Subsidiary Borrowers, the Subsidiary Guarantors, the Lenders party hereto, Deutsche Bank AG Deutschlandgeschäft Branch, as Foreign Trade Facility Agent, and Bank of America, N.A., as Administrative Agent.  All capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement (as defined below), as amended by this Amendment.
RECITALS
WHEREAS, the Parent Borrower, the Foreign Subsidiary Borrowers, the Lenders, Deutsche Bank AG Deutschlandgeschäft Branch, as Foreign Trade Facility Agent, and Bank of America, N.A., as Administrative Agent, entered into that certain Credit Agreement dated as of September 1, 2015 (as amended by that certain First Amendment to Credit Agreement dated as of July 11, 2016 and as further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”); and
WHEREAS, the parties hereto agree to amend the Credit Agreement as set forth below.
NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Amendments.  The Credit Agreement is hereby amended as follows:
(a)In Section 1.1 of the Credit Agreement, the definition of “Applicable Rate” is amended in its entirety to read as follows:
“Applicable Rate”:  (a) (i) at any time other than during the Covenant Relief Period, with respect to any Loans (other than Incremental Term Loans), Domestic Revolving Commitment Fees, Global Revolving Commitment Fees, Financial Letter of Credit Fees, Non-Financial Letter of Credit Fees, Participation FCI Fees and Participation FCI Commitment Fees for any day, the applicable rate per annum set forth in the grid below entitled “At Any Time Other Than During the Covenant Relief Period”, based upon the Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 5.1(c) and (ii) during the Covenant Relief Period, with respect to any Loans (other than Incremental Term Loans), Domestic Revolving Commitment Fees, Global Revolving Commitment Fees, Financial Letter of Credit Fees, Non-Financial Letter of Credit Fees, Participation FCI Fees and Participation FCI Commitment Fees for any day, the applicable rate per annum set forth in the grid below entitled “During the Covenant Relief Period”, based upon the Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 5.1(c):
	
									
	At Any Time Other Than During the Covenant Relief Period

	Pricing Tier
	Consolidated
Leverage Ratio
	Domestic Revolving
Commitment Fee
	Global Revolving
Commitment Fee
	Financial Letter of Credit Fee
	Participation FCI Commitment Fee and Bilateral FCI Commitment Fee
	Participation FCI Fee, Bilateral FCI Fee and Non-Financial Letter of Credit Fee
	Eurocurrency Loans
	ABR Loans

	1
	< 1.0 to 1.0
	0.225%
	0.225%
	1.250%
	0.225%
	0.750%
	1.250%
	0.250%

	2
	> 1.0 to 1.0 but
< 1.5 to 1.0
	0.250%
	0.250%
	1.375%
	0.250%
	0.800%
	1.375%
	0.375%

	3
	> 1.5 to 1.0 but
< 2.0 to 1.0
	0.275%
	0.275%
	1.500%
	0.275%
	0.875%
	1.500%
	0.500%

	4
	> 2.0 to 1.0 but
< 3.0 to 1.0
	0.300%
	0.300%
	1.750%
	0.300%
	1.000%
	1.750%
	0.750%

	5
	> 3.0 to 1.0 but
< 3.5 to 1.0
	0.350%
	0.350%
	2.000%
	0.350%
	1.250%
	2.000%
	1.000%

	6
	> 3.5 to 1.0
	0.400%
	0.400%
	2.250%
	0.400%
	1.375%
	2.250%
	1.250%

	
									
	During the Covenant Relief Period

	Pricing Tier
	Consolidated
Leverage Ratio
	Domestic Revolving
Commitment Fee
	Global Revolving
Commitment Fee
	Financial Letter of Credit Fee
	Participation FCI Commitment Fee and Bilateral FCI Commitment Fee
	Participation FCI Fee, Bilateral FCI Fee and Non-Financial Letter of Credit Fee
	Eurocurrency Loans
	ABR Loans

	1
	< 1.0 to 1.0
	0.325%
	0.325%
	1.750%
	0.325%
	1.050%
	1.750%
	0.750%

	2
	> 1.0 to 1.0 but
< 1.5 to 1.0
	0.350%
	0.350%
	1.875%
	0.350%
	1.100%
	1.875%
	0.875%

	3
	> 1.5 to 1.0 but
< 2.0 to 1.0
	0.375%
	0.375%
	2.000%
	0.375%
	1.175%
	2.000%
	1.000%

	4
	> 2.0 to 1.0 but
< 3.0 to 1.0
	0.400%
	0.400%
	2.250%
	0.400%
	1.300%
	2.250%
	1.250%

	5
	> 3.0 to 1.0 but
< 3.5 to 1.0
	0.450%
	0.450%
	2.500%
	0.450%
	1.550%
	2.500%
	1.500%

	6
	> 3.5 to 1.0
	0.500%
	0.500%
	2.750%
	0.500%
	1.675%
	2.750%
	1.750%

(b)for any Incremental Term Loans, such per annum rates as shall be agreed to by the Parent Borrower and the applicable Incremental Term Lenders as shown in the applicable Incremental Facility Activation Notice; and
(c)for Bilateral FCIs and Bilateral Joint Signature FCIs for any day, (i) at any time other than during the Covenant Relief Period, the applicable rate per annum set forth above in the grid entitled “At Any Time Other Than During the Covenant Relief Period”, based upon the Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 5.1(c) (or such other rate as may be agreed in writing from time to time between the Parent Borrower and the applicable Bilateral FCI Issuing Lender) and (ii) during the Covenant Relief Period, the applicable rate per annum set forth above in the grid entitled “During the Covenant Relief Period”, based upon the Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 5.1(c) (or such other rate as may be agreed in writing from time to time between the Parent Borrower and the applicable Bilateral FCI Issuing Lender).
For purposes of the foregoing, each change in the Applicable Rate resulting from a change in the Consolidated Leverage Ratio shall be effective as of the first Business Day immediately following the date a Compliance Certificate is delivered pursuant to Section 5.1(c); provided that (i) Pricing Tier 6 in the applicable grid shall apply at any time that an Event of Default has occurred and is continuing or (ii) at the option of the Administrative Agent or at the request of the Required Lenders, if a Compliance Certificate is not delivered when due in accordance with Section 5.1(c), Pricing Tier 6 in the applicable grid shall apply as of the first Business Day after the date on which such Compliance Certificate was required to have been delivered and shall continue to apply until the first Business Day immediately following the date a Compliance Certificate is delivered in accordance with Section 5.1(c), whereupon the Applicable Rate shall be adjusted based upon the calculation of the Consolidated Leverage Ratio contained in such Compliance Certificate.  The Applicable Rate in effect from the Second Amendment Effective Date through the first Business Day immediately following the date a Compliance Certificate is required to be delivered pursuant to Section 5.1(c) for the fiscal quarter ending December 31, 2016 shall be determined based upon Pricing Tier 6 in the “During the Covenant Relief Period” grid.  Notwithstanding anything to the contrary contained in this definition, the determination of the Applicable Rate for any period shall be subject to the provisions of Section 2.15(f).
(b)    In Section 1.1 of the Credit Agreement, clause (a) of the definition of “Available Amount” is amended in its entirety to read as “(a) (i) at any time other than during the Covenant Relief Period, $300,000,000 or (ii) during the Covenant Relief Period, $50,000,000; plus”.
(c)    In Section 1.1 of the Credit Agreement, clause (a) of the definition of “Consolidated Total Debt” is amended by inserting immediately after the text “in excess of $50,000,000” the text “(provided that such netting of the amount of cash and cash equivalents shall not exceed $300,000,000 during the Covenant Relief Period)”.
(d)    In Section 1.1 of the Credit Agreement, the definition of “Specified Indebtedness” is amended in its entirety to read as follows:

“Specified Indebtedness”:  (a) any Indebtedness Incurred as permitted by Section 6.2(g)(ii), (h), (k) or (s), (b) any Indebtedness Incurred on or after the Second Amendment Effective Date as permitted by Section 6.2(m) and (c) any secured Indebtedness Incurred as permitted by Section 6.2(j) or (q).
(e)    In Section 1.1 of the Credit Agreement, the following new definitions are added to in the appropriate alphabetical order to read as follows:
“Covenant Relief Period”: the period commencing on the Second Amendment Effective Date through the date that is two Business Days after the date on which the Administrative Agent receives a Covenant Relief Period Termination Notice.
“Covenant Relief Period Termination Notice”: a certificate of a Financial Officer delivered to the Administrative Agent (a) stating that the Parent Borrower irrevocably elects that commencing with the fiscal quarter of the Parent Borrower in which the Administrative Agent receives such certificate, the financial condition covenant set forth in Section 6.1(a) be governed by clause (i) thereof (instead of clause (ii) thereof) and (b) certifying that (i) the Consolidated Leverage Ratio is less than or equal to 3.25 to 1.0 and (ii) the Interest Coverage Ratio is greater than or equal to 3.50 to 1.0, in each case on a pro forma basis computed as at the last day of the most recently ended fiscal quarter of the Parent Borrower for which the financial statements were (or were required to be) delivered pursuant to Section 5.1(a) or (b).
“Second Amendment Effective Date”: December 16, 2016.
(f)    In the first proviso in Section 2.1(b) of the Credit Agreement, clause (x) is amended in its entirety to read “(x) (i) at any time other than during the Covenant Relief Period, $500,000,000 or (ii) during the Covenant Relief Period, $100,000,000, plus”, and clause (y) is amended by inserting the text “at any time other than during the Covenant Relief Period,” immediately prior to the text “an unlimited amount”.
(g)    Section 6.1 of the Credit Agreement is amended in its entirety to read as follows:
Section 6.1    Financial Condition Covenants.
(a)    Consolidated Leverage Ratio.  The Parent Borrower will not permit the Consolidated Leverage Ratio as at the last day of any fiscal quarter of the Parent Borrower to exceed, (i) after delivery of the Covenant Relief Period Termination Notice, 4.00 to 1.0 or (ii) prior to delivery of the Covenant Relief Period Termination Notice, (A) 4.75 to 1.0 for the fiscal quarters of the Parent Borrower ending December 31, 2016, March 31, 2017, June 30, 2017 and September 30, 2017, (B) 4.50 to 1.0 for the fiscal quarters of the Parent Borrower ending December 31, 2017 and March 31, 2018, (C) 4.25 to 1.0 for the fiscal quarters of the Parent Borrower ending June 30, 2018 and September 30, 2018 and (D) 4.00 to 1.0 for the fiscal quarter of the Parent Borrower ending December 31, 2018 and each fiscal quarter of the Parent Borrower ending thereafter.
(b)    Consolidated Interest Coverage Ratio.  The Parent Borrower will not permit the Consolidated Interest Coverage Ratio as of the last day of any fiscal quarter of the Parent Borrower to be less than (i) at any time other than during the Covenant Relief Period, 3.50 to 1.0 and (ii) during the Covenant Relief Period, (A) 3.00 to 1.0 for the fiscal quarters of the Parent Borrower ending December 31, 2016, March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017 and March 30, 2018, (B) 3.25 to 1.0 for the fiscal quarters of the Parent Borrower ending June 30, 2018 and September 30, 2018 and (C) 3.50 to 1.0 for the fiscal quarter of the Parent Borrower ending December 31, 2018 and each fiscal quarter of the Parent Borrower ending thereafter.
(c)    Consolidated Senior Secured Leverage Ratio.  During the Covenant Relief Period, the Parent Borrower will not permit the Consolidated Senior Secured Leverage Ratio as at the last day of any fiscal quarter of the Parent Borrower to exceed 2.50 to 1.0.
(h)    In clauses (g)(ii), (h)(ii), (j), (k)(i) and (q) of Section 6.2 of the Credit Agreement, each instance of the text “15% of the Total Consolidated Total Assets” is amended to read “(x) at any time other than during the Covenant Relief Period, 15% of the Total Consolidated Total Assets and (y) during the Covenant Relief Period, 7.5% of the Total Consolidated Total Assets;”.
(i)    Clause (l) of Section 6.2 of the Credit Agreement is amended by adding the following proviso at the end thereof:

; provided, further, however, that no Indebtedness shall be permitted to be Incurred pursuant to this clause (l) during the Covenant Relief Period;
(j)    Clause (m) of Section 6.2 of the Credit Agreement is amended in its entirety to read as follows:
(m)    Receivables Transaction Attributed Indebtedness and all yield, interest, fees, indemnities and other amounts related thereto; provided that (x) the related Qualified Receivables Transaction shall be subject to Section 6.6(c) and (y) at the time of Incurrence thereof, after giving effect thereto, the aggregate principal amount of all Specified Indebtedness shall not exceed an amount equal to (i) at any time other than during the Covenant Relief Period, 15% of the Total Consolidated Total Assets and (ii) during the Covenant Relief Period, 7.5% of the Total Consolidated Total Assets;”
(k)    Clause (s) of Section 6.2 of the Credit Agreement is amended in its entirety to read as follows:
(s)    Indebtedness assumed in connection with any Permitted Acquisition after the Funding Date so long as such Indebtedness is not incurred in contemplation of such Permitted Acquisition, and any extensions, renewals and replacements of any such Indebtedness; provided that at the time of Incurrence thereof, after giving effect thereto, the aggregate principal amount of all Specified Indebtedness shall not exceed an amount equal to (i) at any time other than during the Covenant Relief Period, 15% of the Total Consolidated Total Assets and (ii) during the Covenant Relief Period, 7.5% of the Total Consolidated Total Assets; and
(l)    Clause (l) of Section 6.3 of the Credit Agreement is amended in its entirety to read as follows:
(l)    Liens securing Indebtedness or other obligations or liabilities (other than Indebtedness) in an aggregate principal amount not exceeding (x) at any time other than during the Covenant Relief Period, an amount equal to 7.5% of the Total Consolidated Assets at any time outstanding and (y) during the Covenant Relief Period, $50,000,000; and
(m)    Clause (f) of Section 6.5 of the Credit Agreement is amended in its entirety to read as follows:
(f)    Permitted Acquisitions (including any related Investment in any Restricted Subsidiary in order to provide all or any portion of (but not more than) the Consideration for such Permitted Acquisition); provided that, notwithstanding anything to the contrary in this clause (f) or in the definition of “Permitted Acquisition” in Section 1.1, during the Covenant Relief Period, the aggregate Consideration paid by the Parent Borrower and its Subsidiaries with respect to all acquisitions shall not exceed $25,000,000;”

(n)    Clause (e)(i) of Section 6.8 of the Credit Agreement is amended in its entirety to read as follows:
(i)    greater than or equal to 2.50 to 1.0, the aggregate amount of such repurchases and dividend declarations pursuant to this Section 6.8(e)(i) shall not exceed (x) at any time other than during the Covenant Relief Period, (A) $100,000,000 per fiscal year plus (B) an amount equal to the portion, if any, of the Available Amount on such date that the Parent Borrower elects to apply to this Section 6.8(e)(i)(x)(B) or (y) during the Covenant Relief Period, $25,000,000 per fiscal year; and
2.    Conditions Precedent.  This effectiveness of this Amendment is subject to the satisfaction of the following conditions precedent:
(a)    receipt by the Administrative Agent of counterparts of this Amendment, duly executed by the Parent Borrower, each Foreign Subsidiary Borrower, each other Loan Party, the Required Lenders, the Foreign Trade Facility Agent and the Administrative Agent;
(b)    receipt by the Administrative Agent of the following, in form and substance reasonably satisfactory to the Administrative Agent and its legal counsel: (i)     copies of the organizational documents of each Loan Party certified to be true and complete as of a recent date by the appropriate Governmental Authority of the jurisdiction of its organization or incorporation, where applicable (or, to the extent such organizational documents have not been amended or modified since the Funding Date, a certification from a Responsible Officer of the applicable Loan Party that no amendments or modifications to such organizational documents have been made since the Funding Date), and certified by a Responsible Officer of such Loan Party to be true and correct as of the Second Amendment Effective Date, (ii) such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as the Administrative Agent may reasonably require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act on behalf 

of such Loan Party in connection with this Amendment and the other Loan Documents to which such Loan Party is a party, and (iii) such documents and certifications as the Administrative Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and is validly existing, in good standing and qualified to engage in business in its jurisdiction of organization or incorporation;
(c)    receipt by the Administrative Agent of a certificate signed by a Responsible Officer of the Parent Borrower, certifying that the representations and warranties of each Loan Party set forth in the Loan Documents are true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case such representations and warranties shall be true and correct in all respects) on and as of the Second Amendment Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects (other than those representations and warranties that are expressly qualified by a Material Adverse Effect or other materiality, in which case such representations and warranties shall be true and correct in all respects) as of such earlier date; 
(d)    receipt by the Administrative Agent, for the account of each Lender that consents to this Amendment on or before 5:00 p.m. Eastern time on December 14, 2016 (or such later time and/or date as the Parent Borrower may agree in its sole discretion), an amendment fee in an amount equal to 0.125% of the sum of (x) the aggregate amount of such consenting Lender’s Commitments plus (y) the aggregate outstanding principal amount of the Term Loans held by such consenting Lender, in each case as of the Second Amendment Effective Date.  Such amendment fee shall be due and payable in full on the Second Amendment Effective Date (as defined in the Credit Agreement after giving effect to this Amendment); and
(e)    receipt by the Administrative Agent, the Foreign Trade Facility Agent, and the Lenders of all other fees and other amounts due and payable on or prior to the Second Amendment Effective Date, including, to the extent invoiced, reimbursement or payment of all out of pocket expenses (including fees, charges and disbursements of counsel) required to be reimbursed or paid by any Loan Party.
For purposes of determining compliance with the conditions specified in this Section 2, each Lender that has signed this Amendment shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Second Amendment Effective Date specifying its objection thereto.
3.    Miscellaneous.
(a)    The Credit Agreement and the obligations of the parties thereunder and under the other Loan Documents, are hereby ratified and confirmed and shall remain in full force and effect according to their terms.  The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or any Agent under any of the Loan Documents, or, except as expressly provided herein, constitute a waiver or amendment of any provision of any of the Loan Documents.  This Amendment shall constitute a Loan Document.
(b)    Each Subsidiary Guarantor (i) acknowledges and consents to all of the terms and conditions of this Amendment, (ii) affirms all of its obligations under the Loan Documents and (iii) agrees that this Amendment and all documents executed in connection herewith do not operate to reduce or discharge its obligations under the Credit Agreement or the other Loan Documents.
(c)    Each of the Loan Parties hereby represents and warrants as follows:
(i)    Such Loan Party has taken all necessary action to authorize the execution, delivery and performance of this Amendment.
(ii)    This Amendment has been duly executed and delivered by such Loan Party and constitutes such Loan Party’s legal, valid and binding obligations, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.
(iii)    No consent or approval of, authorization or order of, or filing, registration or qualification with, any Governmental Authority is required in connection with the execution, delivery or performance by any Loan Party of this Amendment.

(d)    Each of the Loan Parties hereby affirms the Liens created and granted in the Loan Documents in favor of the Administrative Agent for the benefit of the holders of the Secured Obligations and agrees that this Amendment does not adversely affect or impair such liens and security interests in any manner.
(e)    This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment.
(f)    THIS AMENDMENT shall be construed in accordance with and governed by the law of the State of New York (including Sections 5-1401 and 5-1402 of the New York General Obligations Law).
[Signature pages follow]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.
PARENT BORROWER:                SPX FLOW, INC.,
a Delaware corporation

By: /s/ Stephen A. Tsoris     
Name: Stephen A. Tsoris
Title: Vice President and Secretary

FOREIGN SUBSIDIARY BORROWER:        SPX FLOW TECHNOLOGY CRAWLEY LIMITED,
a company organized under the laws of the United Kingdom

By: /s/ Stephen A. Tsoris     
Name: Stephen A. Tsoris
Title: Vice President and Secretary

SUBSIDIARY GUARANTORS:            CORPORATE PLACE LLC,
a Delaware limited liability company

By: /s/ Stephen A. Tsoris     
Name: Stephen A. Tsoris
Title: Vice President and Secretary

SPX FLOW HOLDINGS, INC.,
a Delaware corporation

By: /s/ Stephen A. Tsoris     
Name: Stephen A. Tsoris
Title: Vice President and Secretary

SPX FLOW TECHNOLOGY SYSTEMS, INC.,
a Delaware corporation

By: /s/ Stephen A. Tsoris     
Name: Stephen A. Tsoris
Title: Vice President and Secretary

SPX FLOW US, LLC,
a Delaware limited liability company

By: /s/ Stephen A. Tsoris     
Name: Stephen A. Tsoris
Title: Vice President and Secretary

DELANEY HOLDINGS CO.,
a Delaware corporation

By: /s/ Stephen A. Tsoris     
Name: Stephen A. Tsoris
Title: Vice President and Secretary

ADMINISTRATIVE AGENT:            BANK OF AMERICA, N.A.,
as Administrative Agent

By: /s/ Anthea Del Bianco
Name: Anthea Del Bianco
Title: Vice President

FOREIGN TRADE FACILITY AGENT:        DEUTSCHE BANK AG DEUTSCHLANDGESCHÄFT 
BRANCH,
as Foreign Trade Facility Agent

By: /s/ Christiane Roth 
Name: Christiane Roth
Title: Managing Director

By: /s/ Myriam Rotthaus 
Name: Myriam Rotthaus
Title: Vice President

LENDERS:                    BANK OF AMERICA, N.A.,
as a Lender, Swingline Lender, and Issuing Lender

By: /s/ Christopher Wozniak
Name: Christopher Wozniak
Title: Director

HSBC BANK USA, NATIONAL ASSOCIATION,
as a Lender and Participation FCI Issuing Lender 

By: /s/ John Reid
Name: John Reid
Title: Managing Director

HSBC BANK PLC,
as a Bilateral FCI Issuing Lender

By: /s/ David Hampsey 
Name: David Hampsey
Title: Relationship Director

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,
as a Lender and a Participation FCI Issuing Lender 

By: /s/ George Stoecklein 
Name: George Stoecklein
Title: Managing Director

JPMORGAN CHASE BANK, N.A.,
as a Lender

By: /s/ Robert D. Bryant 
Name: Robert D. Bryant
Title: Executive Director

DEUTSCHE BANK AG DEUTSCHLANDGESCHÄFT BRANCH,
as a Lender, Participation FCI Issuing Lender, Bilateral FCI Issuing Lender and an Issuing Lender

By: /s/ Christiane Roth 
Name: Christiane Roth
Title: Managing Director

By: /s/ Myriam Rotthaus 
Name: Myriam Rotthaus
Title: Vice President

DEUTSCHE BANK AG NEW YORK BRANCH,
as a Lender

By: /s/ Benjamin South
Name: Benjamin South
Title: Vice President

By: /s/ Peter Cucchiara
Name: Peter Cucchiara
Title: Vice President

COMMERZBANK AG, NEW YORK BRANCH,
as a Lender 

By: /s/ Diane Pockaj 
Name: Diane Pockaj
Title: Managing Director

By: /s/ Michael Ravelo
Name: Michael Ravelo
Title: Director

COMMERZBANK AG, FRANKFURT BRANCH,
as a Lender, Participation FCI Issuing Lender and Bilateral FCI Issuing Lender 

By: /s/ Mathias Hopfgarten
Name: Mathias Hopfgarten
Title: Director

By: /s/ Lothar Frenz 
Name: Lothar Frenz
Title: Director

THE BANK OF NOVA SCOTIA,
as a Lender and Bilateral FCI Issuing Lender 

By: /s/ Michael Grad
Name: Michael Grad
Title: Director

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK,
as a Lender 

By: /s/ Mark Koneval
Name: Mark Koneval
Title: Managing Director

By: /s/ Gordon Yip
Name: Gordon Yip
Title: Director

SUNTRUST BANK,
as a Lender 

By: /s/ Shannon Offen 
Name: Shannon Offen
Title: Director

COMPASS BANK,
as a Lender 

By: /s/ Daniel Feldman 
Name: Daniel Feldman
Title: Vice President

SUMITOMO MITSUI BANKING CORPORATION,
as a Lender 

By: /s/ Katsuyuki Kubo
Name: Katsuyuki Kubo
Title: Managing Director

DNB CAPITAL LLC,
as a Lender, with DNB Bank ASA Grand Cayman Branch as designated funder for loans to a UK Borrower 

By: /s/ Philip Kurpiewski
Name: Philip Kurpiewski
Title: Senior Vice President

By: /s/ Kristie Li 
Name: Kristie Li
Title: Senior Vice President

DNB BANK ASA GRAND CAYMAN BRANCH,
as a Participation FCI Lender and Participation FCI Issuing Lender

By: /s/ Philip Kurpiewski
Name: Philip Kurpiewski
Title: Senior Vice President

By: /s/ Kristie Li 
Name: Kristie Li
Title: Senior Vice President

TD BANK, N.A.,
as a Lender 

By: /s/ Mark Hogan 
Name: Mark Hogan
Title: Senior Vice President

WELLS FARGO BANK, NATIONAL ASSOCIATION,
as a Lender 

By: /s/ Adam Speyer
Name: Adam Spreyer
Title: Vice President

NORDEA BANK FINLAND PLC, NEW YORK AND GRAND CAYMAN BRANCHES,
as a Lender 

By: /s/ Rolf Risan
Name: Rolf Risan
Title: Senior Vice President

By: /s/ Christopher Prial
Name: Christopher Prial
Title: Associate

U.S. BANK NATIONAL ASSOCIATION,
as a Lender 

By: /s/ Steven L. Sawyer 
Name: Steven L. Sawyer
Title: Senior Vice President

CITIZENS BANK OF PENNSYLVANIA,
as a Lender 

By: /s/ Jeffrey Mills 
Name: Jeffrey Mills
Title: Vice President

CITIBANK, N.A.,
as a Lender 

By: /s/ Jyothi Narayanan
Name: Jyothi Narayanan
Title: Director

THE NORTHERN TRUST COMPANY,
as a Lender 

By: /s/ John C. Canty 
Name: John C. Canty
Title: Senior Vice President

BNP PARIBAS,
as a Lender 

By: /s/ Melissa Dyki
Name: Melissa Dyki
Title: Director

By: /s/ Richard Pace
Name: Richard Pace
Title: Managing Director

BANK OF TAIWAN, NEW YORK BRANCH,
as a Lender 

By: /s/ Yue-Li Shih
Name: Yue-Li Shih
Title: VP & General Manager

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