Document:

EXHIBIT 4.1

 

[FORM OF WAIVER]

 

December 10,
2009

 

Pzena
Investment Management, LLC

120
West 45th Street, 20th Floor

New
York, NY 10036

 

Re:                               [Principal Amount] Pzena
Investment Management, LLC Senior Subordinated Note Dated October 28, 2008
(the “Note”)

 

Dear
Sirs:

 

In
accordance with Section 10 of the Note, I hereby irrevocably waive Section 2
“Restricted Payments,” insofar as such section prohibits the payments of cash
dividends by the Company, and further, I irrevocably waive Section 7 “Payment
Pro Rata To All Lenders,” to allow the Company to repay the notes to Milestone
Associates, L.L.C., and Amelia Jones Feinberg.

 

	
  Very
  truly yours,

  	
   

  
	
   

  	
   

  
	
  [Note
  Holder]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  [Signatory]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ACKNOWLEDGED
  AND AGREED:

  	
   

  
	
   

  	
   

  
	
  PZENA
  INVESTMENT MANAGEMENT, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Gregory
  S. Martin

  	
   

  
	
  Chief
  Financial OfficerExhibit
4.3

 

STOCK OPTION AGREEMENT

(Employment Inducement Grant)

 

This
NON-STATUTORY STOCK OPTION AGREEMENT, dated as of December 16, 2009 (this “Agreement”),
is between NETLIST, INC., a Delaware corporation (the “Company”), and John
Smolka (the “Optionee”).

 

R E C I T A L S

 

A.            Optionee has not previously been an
officer, director or employee of the Company, and this Option (as defined
below) is granted to Optionee to attract and retain Optionee to serve the
Company in the capacity of Director of Applications.

 

B.            This Agreement, and the grant of an
Option to the Optionee pursuant to the terms and conditions hereof, have been
approved by the Board of Directors of the Company (the “Board”).

 

C.            This Option is designated as a
non-qualified stock option, and does not
qualify as an incentive stock option within the meaning of Section 422 of
the Internal Revenue Code of 1986, as amended (the “Code”).

 

A G R E E M E N T

 

In
consideration of the foregoing recitals and of the mutual covenants contained
herein, the parties, intending to be legally bound, agree as follows:

 

1.             Grant  of  Option.  The Company hereby grants to the Optionee, as
an inducement to accept employment with the Company, an option (the “Option”)
to purchase from the Company all or any number of an aggregate of 50,000 shares
(the “Option  Shares”), of the Company’s common stock, $.001 par
value per share, at a price of $6.03 per share, on the terms and subject to the
conditions of this Agreement.  This grant
is not made pursuant to the
Company’s 2006 Equity Incentive Plan (the “Plan”), attached as Exhibit A.  However, except as otherwise expressly
provided herein, this grant is subject to the rules, terms and conditions of
the Plan as if it were a grant made pursuant to and under the Plan, and all such
rules, terms and conditions are hereby incorporated herein by reference as if
set forth herein in their entirety. 
Capitalized terms used but not defined in this Agreement shall have the
meanings given to them in the Plan.  The
Option is granted as of December 16, 2009 (the “Grant  Date”).

 

2.             Character  of  Option.  The Option is not intended to be treated as an “incentive stock option”
within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”).

 

3.             Duration  of  Option.  Unless subject to earlier expiration or
termination pursuant to the terms of the Plan, the Option shall expire on the
ten year anniversary of the Grant Date.

 

4.             Exercisability  of  Option.  The Option may be exercised, at any time and
from time to time until its expiration or termination, for any or all of those
Option Shares in respect of which the Option shall have become exercisable, in
accordance with the provisions set forth below in this Section 4, on or at
any time prior to the date of any such exercise.  Subject to the provisions of the Plan
(including, without limitation, the provisions of Section 7.1(e) of
the Plan), the Option shall become exercisable in  sixteen 

 

 

(16)
equal quarterly installments thereafter until vested in full (or otherwise terminated),
such that, on December 16, 2013, the Option shall be vested as to all of
the Shares and fully exercisable.  These
installments shall be cumulative, such that Optionee may exercise the Option as
to any or all of the Shares covered by any installment at any time or times
after such installment vests and prior to termination of the Option.  The foregoing notwithstanding, the Option
shall cease vesting upon the termination of Optionee’s status as an employee of
the Company for any reason.  Notwithstanding
anything expressed or implied to the contrary in the foregoing provisions of
this Section 4, the exercisability of the Option may, as provided in Section 7.1(d) of
the Plan, at any time be Accelerated in the discretion of the Committee.

 

5.             Transfer  of  Option.  Other than as expressly permitted by the
provisions of Section 6.4 of the Plan, the Option may not be transferred
except by will or the laws of descent and distribution and, during the lifetime
of the Optionee, may be exercised only by the Optionee.

 

6.             Incorporation  of  Plan
Terms.  The Option is granted
subject to all of the applicable terms and provisions of the Plan, which terms
and provisions are incorporated herein by reference pursuant to Section 1
of this Agreement, including, but not limited to, the limitations on the
Company’s obligation to deliver Option Shares upon exercise set forth in Section 9.2
(Violation of Law), Section 9.3 (Corporate Restrictions on Rights in
Stock), Section 9.4 (Investment Representations) and Section 9.7 (Tax
Withholding).

 

7.             Miscellaneous.  This Agreement shall be construed and
enforced in accordance with the internal, substantive laws of the State of
Delaware and shall be binding upon and inure to the benefit of any successor or
assign of the Company and any executor, administrator, trustee, guardian, or
other legal representative of the Optionee.

 

IN
WITNESS WHEREOF, the parties have executed this Stock Option Agreement as a
sealed instrument as of the date first above written.

 

 

	
  NETLIST, INC.

  	
   

  	
  OPTIONEE

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Michael S. Oswald

  	
   

  	
  /s/
  John Smolka

  
	
   

  	
  Michael
  S. Oswald

  	
   

  	
  John
  Smolka

  
	
   

  	
  Assistant
  Secretary

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Optionee’s
  Address:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

 

Exhibit A

 

Netlist, Inc.

2006 Equity Incentive PlanExhibit 10.1

 

EXECUTION VERSION

 

THIRTY-SEVENTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

THIS THIRTY-SEVENTH
AMENDMENT TO LOAN AND SECURITY AGREEMENT, dated as of December 22, 2009
(this “Amendment”), is by and between BRAD FOOTE GEAR WORKS, INC. (f/k/a
BFG Acquisition Corp.), an Illinois corporation (the “Borrower”) and
BANK OF AMERICA, N.A., (f/k/a LaSalle Bank National Association, f/k/a LaSalle
National Bank, f/k/a LaSalle Bank N.I.) (the “Lender”).

 

WHEREAS, the Borrower and
the Lender are party to that certain Loan and Security Agreement, dated as of January 17,
1997 (as amended to date, the “Loan Agreement”; capitalized terms used
herein, but not otherwise defined herein, shall have the meanings given them in
(or by reference in) the Loan Agreement);

 

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

 

SECTION 1.                           AMENDMENTS.  Effective as of the Amendment Effective Date
(as hereinafter defined), the Loan Agreement shall be amended as follows:

 

1.1                                 Notwithstanding any provision of the Loan
Agreement to the contrary, the Borrower shall not be required to be
incompliance with Section 14.1(d) of the Credit Agreement for the
fiscal quarter ended December 31, 2009.

 

1.2                                 Notwithstanding any provision of the Loan
Agreement to the contrary, the Borrower shall not be required to be
incompliance with Section 14.1(f) of the Credit Agreement for the
calendar months January 2010 and February 2010.

 

1.3                                 Notwithstanding any provision of the Loan
Agreement to the contrary, the Borrower shall not be required to be
incompliance with Section 14.1(g) of the Credit Agreement for the
calendar month December 2009.

 

SECTION 2.                           CONDITIONS PRECEDENT.  This Amendment shall become effective on the
date (the “Amendment Effective Date”) when the Lender shall have
received the following:

 

2.1                                 Amendment.  This
Amendment, duly executed by the parties hereto.

 

2.2                                 Amendment Fee; Expenses. 
Payment by the Borrower in immediately available funds of a $15,000
amendment fee, as well as all reasonable fees and expenses required to be
reimbursed or paid by the Borrower pursuant to Section 4.2 hereof,
including, without limitation, the fees and expenses of Mayer Brown LLP,
counsel to the Lender, incurred in connection with the drafting, negotiation,
execution, delivery and effectiveness of this Amendment.  For the avoidance of any doubt, the amendment
fee payable pursuant to this Section 2.2 shall be in addition to,
and shall not affect the amount or payment dates of, the extension fee set
forth in Section 14.4 of the Loan Agreement.

 

 

2.3                                 Reaffirmation. 
A Reaffirmation, substantially in the form attached hereto as Exhibit A,
executed by the Parent, 1309 and 5100.

 

SECTION 3.                           REPRESENTATIONS AND WARRANTIES.  To induce the Lender to enter into this
Amendment, the Borrower hereby represents and warrants to the Lender as
follows:

 

3.1                                 Due Authorization, Non-Contravention, etc. 
The execution, delivery and performance by the Borrower of this
Amendment are within its corporate powers, have been duly authorized by all
necessary corporate action, and do not:

 

(a)                                  contravene the Borrower’s organizational
documents;

 

(b)                                 contravene any contractual restriction,
law or governmental regulation or court decree or order binding on or affecting
the Borrower; or

 

(c)                                  result in, or require the creation or
imposition of, any Lien on any of Borrower’s properties, other than the
Permitted Liens.

 

3.2                                 Government Approval, Regulation, etc. 
No authorization or approval or other action by, and no notice to or
filing with, any governmental authority or regulatory body or other Person is
required for the due execution, delivery or performance by the Borrower of this
Amendment.

 

3.3                                 Validity, etc. 
This Amendment constitutes the legal, valid and binding obligation of
the Borrower enforceable in accordance with its terms.

 

3.4                                 Event of Default. 
No Event of Default shall occur as a result of, or after giving effect
to, this Amendment.  No Event of Default
has occurred and is continuing.

 

3.5                                 Acknowledgements. 
Without in any manner limiting the generality of the release set forth
in Section 4.5 hereof, the Borrower hereby represents, warrants,
covenants and agrees that there exist no offsets, counterclaims or defenses to
payment or performance of the obligations set forth in the Loan Agreement, the
Subsidiary Loan Documents or the other Loan Documents and, in consideration
hereof, expressly waives any and all such offsets, counterclaims and defenses
arising out of any alleged acts, transactions or omissions on the part of the
Lender arising (or otherwise relating to the period) on or prior to the
Amendment Effective Date.

 

SECTION 4.                           MISCELLANEOUS.

 

4.1                                 Continuing Effectiveness, etc. 
This Amendment shall be deemed to be an amendment to the Loan Agreement,
which shall remain in full force and effect and is hereby ratified, approved
and confirmed in each and every respect. 
After the effectiveness of this Amendment in accordance with its terms,
all references to the Loan Agreement in the Loan Documents or the Subsidiary
Loan Documents or in any other document, instrument, agreement or writing shall
be deemed to refer to the Loan Agreement as amended hereby.

 

2

 

4.2                                 Payment of Costs and Expenses. 
The Borrower agrees to pay on demand all expenses of the Lender
(including the fees and out-of-pocket expenses of counsel to the Lender) in
connection with the drafting, negotiation, execution, delivery and
effectiveness of this Amendment.

 

4.3                                 Mayer Brown Expenses. 
Without limiting the generality of Section 4.2, the Borrower
agrees to pay, within ten (10) Business Days of receipt of an invoice, the
fees and expenses of Mayer Brown LLP, counsel to the Lender, incurred in
connection with the representation of the Lender in this matter.

 

4.4                                 General Loan Agreement Compliance. 
All provisions of the Loan Agreement (as expressly amended in Section 1),
the Subsidiary Loan Documents and the other Loan Documents shall continue in
full force and effect in accordance with the provisions thereof and the
Borrower reaffirms all its agreements under the Loan Agreement, the Subsidiary
Loan Documents and the other Loan Documents. 
The Borrower shall comply with the provisions of the Loan Documents and
Subsidiary Loan Documents to which it is a party, including, without
limitation, the timely payment of all scheduled principal and interest
payments.

 

4.5                                 Release and Covenant Not to Sue. 
In consideration of the agreements and understandings in this Agreement,
the Borrower, for itself and on behalf of the Borrower’s Derivative/Successor
Persons, hereby knowingly and voluntarily, unconditionally and irrevocably,
absolutely, finally and forever releases, acquits and discharges each Lender
Released Party from any Claim relating in any manner whatsoever to any of the
Loan Documents, including any transaction contemplated thereby or undertaken in
connection therewith, or otherwise to the Borrower’s credit relationship with
the Lender, which relates or may relate in any manner whatsoever to any facts,
known or unknown, in existence on or at any time prior to the Amendment
Effective Date (each a “Borrower-Related Claim”).

 

The Borrower hereby
knowingly and voluntarily, unconditionally and irrevocably, absolutely finally
and forever covenants that it shall refrain, and further shall direct any
Derivative/Successor Person to refrain, from commencing or otherwise
prosecuting any action, suit or other proceeding of any kind, nature,
character, or description, including in law or in equity, against any Lender
Released Party on account of any Borrower-Related Claim.  Each Lender Released Party shall be entitled
to enforce this covenant through specific performance.  In addition to any other liability which
shall accrue upon the breach of this covenant, the breaching party (including
any Derivative/Successor Person of the Borrower that commences or prosecutes
any such action, suit or other proceeding) shall be liable to such Lender
Released Party for all reasonable attorneys’ fees and costs incurred by such
party in the defense of any such action, suit or other proceeding.

 

The following terms shall
have the following definitions when used in this Section 4.5:

 

“Claims”
shall mean, with respect to the Borrower, any and all claims, counterclaims,
actions, causes of action (including, any relating in any manner to any
existing litigation or investigation), suits, obligations, controversies,
defenses, debts, liens, contracts, agreements, covenants, promises,
liabilities, damages, penalties, demands, threats, compensation, losses, costs,
judgments, orders, interest, fee, or expense (including attorneys’ fees and
expenses) or other similar items of 

 

3

 

any kind, type, nature, character or description, including, whether in
law, equity or otherwise, whether now known or unknown, whether in contract or
in tort, whether choate or inchoate, whether contingent or vested, whether
liquidated or unliquidated, whether fixed or unfixed, whether matured or
unmatured, whether suspected or unsuspected, and whether or not concealed,
sealed or hidden, of the Borrower and/or which may be asserted by the Borrower,
through the Borrower or otherwise on the behalf of the Borrower (including
those which may be asserted on any derivative basis), which have existed at any
time on or prior to the date hereof.

 

“Derivative/Successor
Person” shall mean, with respect to the Borrower, any person or other
entity (including any former, current, or future employee, officer, agent,
attorney, board member, shareholder, parent, subsidiary, partnership, joint
venture, other affiliate, spouse, relative, heir, beneficiary, legal
representative, creditor, successor or assign) that may assert or may attempt
to assert any Claim by or otherwise belonging to the Borrower, through the
Borrower or otherwise on behalf of the Borrower (including on any derivative
basis).

 

“Lender
Released Parties” shall mean the Lender and each of its former, current,
and future subsidiaries, parents, partnerships, joint ventures, other
affiliates, officers, directors, employees, attorneys, agents (including
consultants), assigns, heirs, executors, administrators, predecessors,
successors and assigns.

 

4.6                                 Severability. 
Any provision of this Amendment which is prohibited or unenforceable in
any jurisdiction shall, as to such provision and such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions of this Amendment or affecting the
validity or enforceability of such provision in any other jurisdiction.

 

4.7                                 Headings.  The various
headings of this Amendment are inserted for convenience only and shall not
affect the meaning or interpretation of this Amendment or any provisions
hereof.

 

4.8                                 Execution in Counterparts. 
This Amendment may be executed by the parties hereto in several
counterparts, each of which shall be deemed to be an original and all of which
shall constitute together but one and the same agreement.

 

4.9                                 Governing Law. 
THIS AMENDMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED
BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS (INCLUDING 735 ILCS SECTION 105/5-5),
BUT OTHERWISE WITHOUT GIVING EFFECT TO ANY OF SUCH STATE’S CONFLICTS-OF-LAW
PROVISIONS.

 

4.10                           Successors and Assigns. 
This Amendment shall be binding upon and shall inure to the benefit of
the parties hereto and their respective successors and assigns.

 

4

 

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

 

	
   

  	
  BRAD
  FOOTE GEAR WORKS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ralph Placzek

  
	
   

  	
  Name:

  	
  Ralph
  Placzek

  
	
   

  	
  Title:

  	
  Vice President of Finance and Treasurer

  

 

S-1

 

	
   

  	
  BANK
  OF AMERICA, N.A., as Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Sandra H. Bennett

  
	
   

  	
  Name:

  	
  Sandra
  H. Bennett

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

S-2

 

EXHIBIT A

 

REAFFIRMATION

 

THIS REAFFIRMATION (this “Reaffirmation”)
dated as of December     , 2009, is made by each of
the undersigned (each, an “Undersigned”), in favor of the Lender (as
defined below).

 

R  E  C  I  T
A  L  S:

 

1.                                       Brad Foote Gear
Works, Inc. (the “Borrower”) and Bank of America, N.A., as lender
(in such capacity, the “Lender”) are parties to that certain Loan and
Security Agreement, dated as of January 17, 1997 (as amended to date and
in effect on the date hereof, the “Existing Credit Agreement”).

 

2.                                       The Borrower
and the Lender have agreed to amend the Existing Credit Agreement pursuant to
that certain Thirty-Seventh Amendment to Loan and Security Agreement (the “Thirty-Seventh
Amendment”) of even date herewith (the Existing Credit Agreement, as
amended by the Thirty-Seventh Amendment, and as such may be further amended,
modified, restated or supplemented from time to time, the “Credit Agreement”).

 

3.                                       Each of the
Undersigned is party to one or more Loan Documents (collectively, the “Reaffirmed
Documents”) relating to the Credit Agreement.

 

4.                                       It is a
condition precedent to the occurrence of the Amendment Effective Date (as
defined in the Thirty-Seventh Amendment) that each of the Undersigned execute
and deliver this Reaffirmation.

 

NOW THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and in order to induce the Lender to enter into the
Thirty-Seventh Amendment, each Undersigned agrees, for the benefit of the
Lender, as follows:

 

ARTICLE I.

DEFINITIONS

 

Capitalized terms used
herein that are defined in the Credit Agreement shall have the same meanings
when used herein unless otherwise defined herein.

 

ARTICLE II.

REAFFIRMATION

 

Each Reaffirmed Document
remains in full force and effect and is hereby ratified and confirmed, and from
and after the date hereof, each reference that appears in any of the Reaffirmed
Documents to the Existing Credit Agreement shall be deemed to be a reference to
the Credit Agreement.

 

A-1

 

ARTICLE
III.

MISCELLANEOUS PROVISIONS

 

SECTION 3.1.  Loan Document.  This Reaffirmation is a Loan Document
executed pursuant to the Credit Agreement and shall (unless otherwise expressly
indicated herein) be construed, administered and applied in accordance with the
terms and provisions thereof.

 

SECTION 3.2.  Severability.  Any provision of this Reaffirmation which is
prohibited or unenforceable in any jurisdiction shall, as to such provision and
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions of this
Reaffirmation or affecting the validity or enforceability of such provision in
any other jurisdiction.

 

SECTION 3.3.  Headings.  The various headings of this reaffirmation
are inserted for convenience only and shall not affect the meaning or
interpretation of this Amendment or any provisions hereof.

 

SECTION 3.4.  Execution in Counterparts.  This Reaffirmation may be executed by the
parties hereto in several counterparts, each of which shall be deemed to be an
original and all of which shall constitute together but one and the same
agreement.

 

SECTION 3.5  Governing Law.  THIS REAFFIRMATION SHALL BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS
(INCLUDING 735 ILCS SECTION 105/5-5), BUT OTHERWISE WITHOUT GIVING EFFECT
TO ANY OF SUCH STATE’S CONFLICTS-OF-LAW PROVISIONS.

 

SECTION 3.6  Successors and Assigns.  This Reaffirmation shall be binding upon and
shall inure to the benefit of the parties hereto and their respective
successors and assigns.

 

SECTION 3.7  Release and Covenant Not to Sue.  Each of the Undersigned agrees that it shall
be bound by the release set forth in Section 4.5 of the Thirty-Seventh
Amendment as if such provision applied directly to such party mutatis mutandis.

 

A-2

 

IN WITNESS WHEREOF, the
parties hereto, by their officers duly authorized, have caused this
Reaffirmation to be duly executed and delivered as of the date first above
written.

 

	
   

  	
  BROADWIND
  ENERGY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  1309
  SOUTH CICERO AVENUE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  5100
  NEVILLE ROAD, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

A-3

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