Document:

Exhibit 10.1

 

EXECUTION VERSION

 

 

REPLACEMENT TERM LOAN AMENDMENT

 

REPLACEMENT TERM LOAN AMENDMENT, dated as of November 2, 2016 (this “Agreement”), to that certain Credit Agreement, dated as of February 9, 2012, as amended and restated as of May 30, 2012, as further amended and restated as of May 31, 2013 and as amended by the First Amendment dated as of May 18, 2015 (the “Credit Agreement”), among Generac Acquisition Corp., a Delaware corporation (“Holdings”), Generac Power Systems, Inc., a Wisconsin corporation (the “Borrower”), the several lenders from time to time party thereto (the “Lenders”), JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”) and the other agents and parties party thereto.

 

W I T N E S S E T H:

 

WHEREAS, pursuant to the Credit Agreement, the Lenders have agreed to make, and have made, certain loans and other extensions of credit to the Borrower;

 

WHEREAS, the Borrower has requested (i) that the Lenders effect certain modifications to the Credit Agreement as described herein (the Credit Agreement, as so modified hereby, the “Amended Credit Agreement”), and (ii) that the outstanding Term Loans be replaced with a new term loan B facility (the “2016 Replacement Term Loan Facility”) by obtaining 2016 New Term Loan Commitments (as defined in Section 3 of this Agreement) and having existing Term Loans be continued, pursuant to a cashless roll, in each case, as provided herein; 

 

WHEREAS, the loans under the 2016 Replacement Term Loan Facility (the “2016 New Term Loans”) will replace and refinance the currently outstanding Term Loans and are collectively intended to be Replacement Term Loans, as contemplated in Section 9.08(d) of the Credit Agreement; 

 

WHEREAS, the 2016 New Term Loans will have the terms set forth in the Amended Credit Agreement;

 

WHEREAS, each existing Lender that executes and delivers a lender addendum signature page to this Agreement (substantially in the form attached hereto) in such capacity (a “Continuing Term Lender Addendum”) and in connection therewith agrees to continue all of its Existing Term Loans (as defined below) as 2016 New Term Loans (such continued Term Loans, the “Continued Term Loans”, and such Lenders, collectively, the “Continuing Term Lenders”) will thereby (i) agree to the terms of this Agreement and (ii) agree to continue, pursuant to a cashless roll, all of its existing Term Loans (all existing Term Loans outstanding under the Credit Agreement, the “Existing Term Loans”, and the Lenders of such Existing Term Loans, collectively, the “Existing Term Lenders”) outstanding on the Effective Date (as defined below) as 2016 New Term Loans in a principal amount equal to the aggregate principal amount of such Existing Term Loans so continued (it being understood that the principal amount of Existing Term Loans so continued shall be determined by the Administrative Agent and notified to such Existing Term Lender);

 

WHEREAS, subject to the preceding recitals, each Person (other than a Continuing Term Lender in its capacity as such) that executes and delivers a lender addendum signature page to this Agreement (substantially in the form attached hereto) (a “Replacement Term Lender Addendum”) and agrees in connection therewith to provide its 2016 New Term Loan (collectively, the “Replacement Term Lenders”) will thereby (i) agree to the terms of this Agreement and (ii) commit to provide its 2016 New Term Loan on the Effective Date (the “Replacement Term Loans”) in such amount (not in excess of any such commitment) as is determined by the Administrative Agent and notified to such Replacement Term Lender; 

 

 

 

 

WHEREAS, the proceeds of the Replacement Term Loans will be used to repay in full the outstanding principal amount of the Existing Term Loans that are not continued as 2016 New Term Loans by Continuing Term Lenders (the “Non-Continuing Term Loans”);

 

WHEREAS, the Continuing Term Lenders and the Replacement Term Lenders (collectively, the “2016 Term Lenders”) are severally willing to continue their Existing Term Loans as Continued Term Loans and/or to provide Replacement Term Loans, as the case may be, subject to the terms and conditions set forth in the Credit Agreement, this Agreement and the Amended Credit Agreement, as applicable;

 

WHEREAS, upon the occurrence of the Effective Date, the 2016 Term Lenders will constitute Required Lenders under the Credit Agreement; and

 

WHEREAS, the 2016 Term Lenders and the Administrative Agent are willing to agree to this Agreement on the terms set forth herein;

 

NOW THEREFORE, in consideration of the premises and mutual covenants hereinafter set forth, the parties hereto agree as follows:

 

SECTION 1.     Definitions. Except as otherwise defined herein, all capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Amended Credit Agreement. 

 

SECTION 2.     Amendments to the Credit Agreement. The Credit Agreement is hereby amended, effective immediately after the provision of, or the continuation of Existing Term Loans as, as applicable, 2016 New Term Loans on the Effective Date, as follows:

 

2.1.     Amendments to Section 1.01. Section 1.01 of the Credit Agreement is hereby amended as follows:

 

(a)     The definition of “Commitment” is hereby amended and restated in its entirety as follows:

 

“Commitment” shall mean with respect to any Lender, the obligation of such Lender, if any, to:

 

(i) make an Existing Term Loan to the Borrower hereunder on the Second Restatement Date in accordance with the Restatement Agreement, expressed as an amount representing the maximum principal amount of the Term Loan to be made by such Lender, which aggregate amount of the Commitments on the Second Restatement Date was $1.2 billion, and

 

(ii) provide, or to continue its Existing Term Loans as, as applicable, a 2016 New Term Loan to the Borrower on the 2016 Replacement Term Loan Amendment Effective Date in accordance with the 2016 Replacement Term Loan Amendment, expressed as an amount representing the maximum principal amount of the 2016 New Term Loan to be made by such Lender hereunder, which aggregate amount of the Commitments on the 2016 Replacement Term Loan Amendment Effective Date is $929 million. 

 

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The amount of each Term Lender’s Commitment on the Second Restatement Date is its “New Term Loan Commitment” as defined in the Restatement Agreement. The amount of each Term Lender’s Commitment on the 2016 Replacement Term Loan Amendment Effective Date is its 2016 Replacement Term Loan Commitment. For all purposes hereunder, from and after the 2016 Replacement Term Loan Amendment Effective Date, each reference to a “Commitment” in this Agreement and in the Loan Documents shall be deemed to include the commitments to provide, or to continue Existing Term Loans as, the 2016 New Term Loans.

 

(b)     The definition of “Defaulting Lender” is hereby amended by inserting immediately after the phrase “a Bankruptcy Event” the phrase “or a Bail-In Action”.

 

(c)     Clause (b)(iii) of the definition of “Excess Cash Flow” is hereby amended by deleting the dollar amount “$75.0 million” and substituting in lieu thereof the dollar amount “$100.0 million”.

 

(d)     The definition of “Lender” is hereby amended and restated in its entirety as follows:

 

“Lender” shall mean (i) each New Term Lender (as defined in the Restatement Agreement) (other than any such person that has ceased to be a party hereto pursuant to an Assignment and Acceptance in accordance with Section 9.04), (ii) each financial institution or other entity that is listed on the signature pages of the 2016 Replacement Term Loan Amendment as a “Continuing Term Lender” and/or “Replacement Term Lender,” as applicable (other than any such Person that has ceased to be a party hereto pursuant to an Assignment and Acceptance in accordance with Section 9.04) and (iii) any other person that becomes a “Lender” hereunder in accordance with Section 9.04.

 

(e)     The definition of “Maturity Date” is hereby amended by deleting the date “May 31, 2020” and substituting in lieu thereof the date “May 31, 2023”.

 

(f)     The definition of “Term Loans” is hereby amended and restated in its entirety as follows:

 

“Term Loans” shall mean (i) the Existing Term Loans that were made by the Lenders to the Borrower on the Second Restatement Date pursuant to Section 2.01 and (ii) the 2016 New Term Loans, as context may require. On and after the 2016 Replacement Term Loan Amendment Effective Date, each reference to a “Term Loan” in this Agreement and in the other Loan Documents shall be deemed to include the 2016 New Term Loans, except as the context may otherwise require. 

 

(g)     The following new definitions shall be inserted in their proper alphabetical order:

 

“2016 New Term Loans” shall have the meaning set forth in Section 2.01. 

 

“2016 Replacement Term Loan Amendment” shall mean the Replacement Term Loan Amendment, dated as of the 2016 Replacement Term Loan Amendment Effective Date, among Holdings, the Borrower, the other Loan Parties party thereto, the Lenders and JPMorgan Chase Bank, N.A., as Administrative Agent.

 

“2016 Replacement Term Loan Amendment Effective Date” shall mean November 2, 2016.

 

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“2016 Replacement Term Loan Facility” shall have the meaning set forth in the 2016 Replacement Term Loan Amendment.

 

“2016 Replacement Term Loan Commitment” shall have the meaning set forth in the 2016 Replacement Term Loan Amendment.

 

“Bail-In Action” shall mean the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

“Bail-In Legislation” shall mean with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

“EEA Financial Institution” shall mean (a) any institution established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

 

“EEA Member Country” shall mean any of the member states of the European Union, the United Kingdom, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution Authority” shall mean any public administrative authority or any Person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“EU Bail-In Legislation Schedule” shall mean the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor Person), as in effect from time to time.

 

“Existing Term Loans” shall have the meaning set forth in Section 2.01.

 

“Write-Down and Conversion Powers” shall mean, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

2.2.     Amendment to Section 2.01. Section 2.01 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

On the Second Restatement Date, each Lender made Term Loans to the Borrower (the “Existing Term Loans”) in the original aggregate principal amount of $1.2 billion. Subject to the terms and conditions set forth in the 2016 Replacement Term Loan Amendment, on the 2016 Replacement Term Loan Amendment Effective Date, each 2016 New Term Lender agrees to and shall provide or continue its Existing Term Loans pursuant to a cashless roll, as applicable, its Term Loans (such provided or continued Term Loans, collectively, the “2016 New Term Loans”) in a principal amount not to exceed its 2016 Replacement Term Loan Commitment. 

 

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2.3.     Amendment to Section 2.02(a). Section 2.02(a) of the Credit Agreement is hereby amended by adding immediately before the final sentence thereof the sentence “On the 2016 Replacement Term Loan Amendment Effective Date, the 2016 New Term Loans shall constitute, on the terms provided in the 2016 Replacement Term Loan Amendment, Term Loans hereunder.”.

 

2.4.     Amendment to Section 2.10. Section 2.10(a) of the Credit Agreement is hereby amended by replacing the text “on the Second Restatement Date” with “on the 2016 Replacement Term Loan Amendment Effective Date.”

 

2.5.     Amendment to Section 2.11. Section 2.11 of the Credit Agreement is hereby amended by deleting the text “(i) any prepayment of Term Loans made or (ii) any amendment to the Loan Documents in respect of the Term Loans, in each case on or prior to the date that is the six-month anniversary of the First Amendment Effective Date and in connection with a Repricing Transaction” in subsection (a) thereof and substituting in lieu thereof the text “(i) any prepayment of Term Loans made or (ii) any amendment to the Loan Documents in respect of the Term Loans, in each case on or prior to the date that is the six-month anniversary of the 2016 Replacement Term Loan Amendment Effective Date and in connection with a Repricing Transaction”.

 

2.6.     Amendment to Section 2.17. Section 2.17 of the Credit Agreement is hereby amended by adding the following as a new clause (h) therein:

 

(h) For purposes of determining withholding Taxes imposed under FATCA, from and after the 2016 Replacement Term Loan Amendment Effective Date, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Term Loans as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

 

2.7.     Amendment to Section 2.19(c). Section 2.19(c) of the Credit Agreement is hereby amended by deleting the text “the date that is the six-month anniversary of the First Amendment Effective Date as a result of a Repricing Transaction” in subsection (d) thereof and substituting in lieu thereof the text “the date that is the six-month anniversary of the 2016 Replacement Term Loan Amendment Effective Date as a result of a Repricing Transaction”.

 

2.8.     Amendment to Article III. Article III of the Credit Agreement is hereby amended by adding the following as a new Section 3.22 therein:

 

“Section 3.22     EEA Financial Institutions. No Loan Party is an EEA Financial Institution.”

 

2.9.     Amendment to Section 6.04(b). Section 6.04(b) of the Credit Agreement is hereby amended by deleting the dollar amount “$50.0 million” therein and substituting in lieu thereof the dollar amount “$100.0 million”.

 

2.10.     Amendment to Section 6.04(q). Section 6.04(q) of the Credit Agreement is hereby amended by (i) adding the text “made after the 2016 Replacement Term Loan Amendment Effective Date” immediately after the text “Investments by the Borrower or any Restricted Subsidiary” and (ii) adding the text “provided, however, that notwithstanding anything to the contrary herein, any Investments made pursuant to this paragraph (q) prior to the 2016 Replacement Term Loan Amendment Effective Date shall not count against or otherwise reduce the $150.0 million Investment capacity set forth above” immediately before the end thereof.

 

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2.11.     Amendment to Section 9.04(b)(A). Section 9.04(b)(A) of the Credit Agreement is hereby amended and restated as set forth below: 

 

“the Borrower, provided that (x) the Borrower shall be deemed to have consented to an assignment unless it shall have objected thereto by written notice to the Administrative Agent within ten (10) Business Days after having received notice thereof and (y) no consent of the Borrower shall be required (i) if an Event of Default under Section 7.01(b) or (c), or (with respect to the Borrower only) Section 7.01(h) or (i)(i), (ii), (iii) or (iv) has occurred and is continuing and (ii) with respect to an assignment in respect of a Term Facility, if such assignment is to a Lender, an Affiliate of a Lender or a Related Fund in respect of a Lender and provided further that, for purposes of clarity, it is understood that no assignment may be made to a Disqualified Institution;”

 

2.12.     Amendment to Article IX. Article IX of the Credit Agreement is hereby amended by adding the following as a new Section 9.25 therein:

 

“SECTION 9.25. Acknowledgement and Consent to Bail-In of EEA Financial Institutions. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)      the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)      the effects of any Bail-In Action on any such liability, including, if applicable:

 

(i) a reduction in full or in part or cancellation of any such liability;

 

(ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent entity, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

 

(iii) the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority.”

 

SECTION 3.     2016 New Term Loans; Allocations and Reallocations. 

 

3.1.     Each (a) Replacement Term Lender, by executing a Replacement Term Lender Addendum, and (b) Continuing Term Lender, by executing a Continuing Term Lender Addendum, consents to the amendments to the Credit Agreement set forth in this Agreement.

 

3.2.     Subject to the terms and conditions set forth herein (i) each Continuing Term Lender agrees to continue, pursuant to a cashless roll, all its Existing Term Loans as a Continued Term Loan on the date requested by the Borrower to be the Effective Date in a principal amount equal to such Continuing Term Lender’s Continuing Term Loan Commitment (as defined below) and (ii) each Replacement Term Lender agrees to provide its Replacement Term Loan on such date in a principal amount equal to such Replacement Term Lender’s Replacement Term Loan Commitment (as defined below). The Borrower shall give notice to the Administrative Agent of the proposed Effective Date not later than one Business Day prior thereto, and the Administrative Agent shall notify each Continuing Term Lender and each Replacement Term Lender thereof. 

 

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3.3.      Each Replacement Term Lender will provide its Replacement Term Loan on the Effective Date by making available to the Administrative Agent, in the manner contemplated by the Amended Credit Agreement or as otherwise arranged by the Administrative Agent and such Replacement Lenders, an amount equal to its Replacement Term Loan Commitment. The “Replacement Term Loan Commitment” of any Replacement Term Lender will be such amount (not exceeding any commitment offered by such Replacement Term Lender) allocated to it by the Administrative Agent and notified to it on or prior to the Effective Date. The “Continuing Term Loan Commitment” of any Continuing Term Lender will be the amount of its Existing Term Loans as set forth in the Register immediately prior to giving effect to the Effective Date (or such lesser amount as allocated to it by the Administrative Agent and notified to it on or prior to the Effective Date), which shall be continued as an equal amount of Continued Term Loans (it being understood that no cash will be advanced as part of any continuation of Continued Term Loans). Replacement Term Loan Commitments and Continuing Term Loan Commitments are collectively referred to herein as the “2016 Replacement Term Loan Commitment”. The commitments of the Replacement Term Lenders and the continuation undertakings of the Continuing Term Lenders are several and no such Lender will be responsible for any other such Lender’s failure to provide, or continue its Existing Term Loans as, as applicable, its 2016 New Term Loan. The 2016 New Term Loans may from time to time be ABR Loans or Eurodollar Loans, as determined by the Borrower and notified to the Administrative Agent as contemplated by Sections 2.02 and 2.07 of the Amended Credit Agreement. Upon the provision of, or the continuation of the Existing Term Loans as, as applicable, 2016 New Term Loans on the Effective Date, the 2016 New Term Loans shall be ABR Loans or Eurodollar Loans, as the case may be, of the same Type and with the Interest Period(s) that were applicable to the Existing Term Loans immediately prior to the Effective Date uninterrupted thereby with the initial Interest Period(s) applicable to the 2016 New Term Loans equal to the remaining length of such Existing Term Loans’ Interest Period(s).

 

3.4.     The obligation of each 2016 Term Lender to provide, or continue its Existing Term Loans as, as applicable, its 2016 New Term Loans on the Effective Date is subject to the satisfaction of the conditions set forth in Section 4 of this Agreement. 

 

3.5.     On and after the Effective Date, each reference in the Amended Credit Agreement to “Term Loans” shall be deemed a reference to the 2016 New Term Loans contemplated hereby, except as the context may otherwise require.

 

3.6.     The Lenders hereby agree to waive the notice requirements of Sections 2.10(c) and 2.11 of the Amended Credit Agreement (which notice is otherwise hereby deemed to be effectively given to the Administrative Agent) in connection with the prepayment of Term Loans and the prepayment or replacement of Existing Term Loans contemplated hereby. The Continuing Term Lenders, constituting Required Lenders immediately prior to the Effective Date, hereby agree to waive the breakage costs provisions of Section 2.16 of the Credit Agreement in connection with the prepayment or replacement of Existing Term Loans contemplated hereby.

 

SECTION 4.     Effectiveness. This Agreement shall become effective, and the provision of, or the continuation of Existing Term Loans as, as applicable, the 2016 New Term Loans shall occur, as of the date (the “Effective Date”) on which the conditions set forth below have been satisfied:

 

4.1.     At the time of and immediately after giving effect to the Effective Date and the provision of, or the continuation of Existing Term Loans as, as applicable, 2016 New Term Loans on the Effective Date, no Event of Default or Default shall have occurred and be continuing.

 

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4.2.     The Administrative Agent (or its counsel) shall have received from (i) the Borrower, Holdings, the other Loan Parties (the Borrower, Holdings and such other Loan Parties, collectively, the “Reaffirming Parties”) and (ii) the 2016 Term Lenders either (x) a counterpart of this Agreement signed on behalf of such party or (y) written evidence satisfactory to the Administrative Agent (which may include fax or other electronic transmission of a signed signature page of this Agreement) that such party has signed a counterpart of this Agreement.

 

4.3.     The Administrative Agent shall have received, on behalf of itself and the Lenders on the Effective Date, a customary written opinion of (x) Sidley Austin LLP, special counsel for Holdings and the Borrower and (y) Reinhart Boerner Van Dueren S.C., Wisconsin counsel for the Borrower, (A) dated the Effective Date, (B) addressed to the Administrative Agent and the Lenders on the Effective Date and (C) in form and substance reasonably satisfactory to the Administrative Agent consistent with those delivered on the Second Restatement Date (other than changes to such legal opinion resulting from change in law, fact or change to counsel’s form of opinion), and each of Holdings and the Borrower hereby instructs its counsel to deliver such opinions.

 

4.4.     The Administrative Agent shall have received in the case of each Loan Party each of the items referred to in clauses (a), (b), (c) and (d) below:

 

(a)     a copy of the certificate or articles of incorporation, certificate of limited partnership or certificate of formation, including all amendments thereto, of each Loan Party, certified as of a recent date by the Secretary of State (or other similar official) of the jurisdiction of its organization, and a certificate as to the good standing (to the extent such concept or a similar concept exists under the laws of such jurisdiction) of each such Loan Party as of a recent date from such Secretary of State (or other similar official);

 

(b)     a certificate of the secretary or assistant secretary or similar officer of each Loan Party dated the Effective Date and certifying:

 

(i) that attached thereto is a true and complete copy of the by laws (or limited partnership agreement, limited liability company agreement or other equivalent governing documents) of such Loan Party as in effect on the Effective Date,

 

(ii) that attached thereto is a true and complete copy of resolutions duly adopted by the board of directors (or equivalent governing body) of such Loan Party (or its managing general partner or managing member) authorizing the execution, delivery and performance of this Agreement and that such resolutions have not been modified, rescinded or amended and are in full force and effect on the Effective Date,

 

(iii) that the certificate or articles of incorporation, certificate of limited partnership or certificate of formation of such Loan Party has not been amended since the date of the last amendment thereto disclosed pursuant to clause (i) above,

 

(iv) as to the incumbency and specimen signature of each officer executing any Loan Document or any other document delivered in connection herewith on behalf of such Loan Party, and

 

(v) as to the absence of any pending proceeding for the dissolution or liquidation of such Loan Party;

 

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(c)     a certificate of another officer as to the incumbency and specimen signature of the Secretary or Assistant Secretary or similar officer executing the certificate pursuant to clause (b) above; and

 

(d)     a certificate of a Responsible Officer of Holdings or the Borrower certifying that as of the Effective Date (i) all the representations and warranties set forth in the Credit Agreement are true and correct to the extent set forth therein on and as of the Effective Date except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects (without duplication of any materiality qualifier contained therein) as of such earlier date and (ii) that as of the Effective Date, no Default or Event of Default has occurred and is continuing or would result from the provision of, or the continuation of Existing Term Loans as, as applicable, 2016 New Term Loans on the Effective Date.

 

4.5.      (i) Subject to Section 7, the Collateral and Guarantee Requirement continues to be satisfied, (ii) the Administrative Agent shall have received the results of a search of the Uniform Commercial Code (or equivalent) filings made with respect to the Loan Parties and copies of the financing statements (or similar documents) disclosed by such search and (iii) the Administrative Agent shall have received evidence reasonably satisfactory to the Administrative Agent that the Liens indicated by such financing statements (or similar documents) are either permitted by Section 6.02 of the Amended Credit Agreement or have been released (or authorized for release in a manner reasonably satisfactory to the Administrative Agent).

 

4.6.     The Lenders shall have received, in each case in accordance with Section 5.04 of the Credit Agreement, the financial statements and other financial information referred to in Sections 5.04(a), (b), (c), (d) and (e) of the Credit Agreement.

 

4.7.     The Administrative Agent shall have received all fees payable thereto or to any Lender on or prior to the Effective Date and, to the extent invoiced, all other amounts due and payable pursuant to the Loan Documents on or prior to the Effective Date, including, to the extent invoiced, reimbursement or payment of all reasonable out-of-pocket expenses (including reasonable fees, charges and disbursements of Simpson Thacher & Bartlett LLP) required to be reimbursed or paid by the Loan Parties under the Credit Agreement or under any other Loan Document.

 

4.8.     To the extent requested by the Administrative Agent not less than two (2) days prior to the Effective Date, the Administrative Agent shall have received, at least one (1) day prior to the Effective Date, all documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the USA PATRIOT Act.

 

Each 2016 Term Lender, by delivering its signature page to this Agreement and providing, or continuing its Existing Term Loans as, as applicable, its 2016 New Term Loan on the Effective Date shall be deemed to have acknowledged receipt of and consented to and approved each Loan Document and each other document required to be approved by the Administrative Agent or any Lender, as applicable, on the Effective Date.

 

SECTION 5.     Representations and Warranties. To induce the other parties hereto to enter into this Agreement, each of Holdings and the Borrower represents and warrants to each of the 2016 Term Lenders and the Administrative Agent that:

 

5.1.     This Agreement has been duly authorized, executed and delivered by it and this Agreement and the Amended Credit Agreement constitute its valid and binding obligation, enforceable against it 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; and

 

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5.2.     (a) each of the representations and warranties made by any Loan Party in or pursuant to the Loan Documents is true and correct in all material respects (except any representation and warranty which is qualified by materiality, which is correct and accurate in all respects) on and as of the Effective Date as if made on such date; provided if any such representation and warranty is expressly made only as of a prior date, such representation and warranty is true as of such prior date and (b) no Default or Event of Default has occurred and is continuing or would result from the provision of, or the continuation of Existing Term Loans as, as applicable, 2016 New Term Loans on the Effective Date.

 

SECTION 6.     Effect of Amendment. 

 

6.1.      Except as expressly set forth herein, this Agreement shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders or the Administrative Agent under the Credit Agreement, the Amended Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of the Credit Agreement or of any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. Nothing herein shall be deemed to entitle the Borrower to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Amended Credit Agreement or any other Loan Document in similar or different circumstances.

 

6.2.      On and after the Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import, and each reference to the Credit Agreement in any other Loan Document shall be deemed a reference to the Amended Credit Agreement. This Agreement shall constitute a “Loan Document” for all purposes of the Amended Credit Agreement and the other Loan Documents.

 

SECTION 7.     Legal Opinions Regarding Mortgages. The Borrower shall, within 90 days of the Effective Date (or such later date as may be agreed to by the Administrative Agent), deliver to the Administrative Agent, executed legal opinions from counsel to the Borrower, which opine that, after giving effect to this Agreement, each Mortgage encumbering each Mortgaged Property owned or leased by the Borrower or a Subsidiary Guarantor as of the Effective Date continues in full force and effect and is effective to secure the 2016 Replacement Term Loan Facility, including the extension of the Maturity Date described above in Section 2(e), and that no filing or recording of any amendment or confirmation is required in connection therewith, in each case in form and substance reasonably satisfactory to the Administrative Agent; provided, however, that such legal opinions may include customary assumptions and exceptions in accordance with customary opinion practice.

 

SECTION 8.     General.

 

8.1.      GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

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8.2.      Costs and Expenses. The Borrower agrees to reimburse the Administrative Agent for its reasonable out-of-pocket expenses in connection with the preparation, negotiation and execution of this Agreement, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent in accordance with Section 9.05 of the Amended Credit Agreement.

 

8.3.      Counterparts. This Agreement 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 any executed counterpart of a signature page of this Agreement by telecopy or email transmission shall be effective as delivery of a manually executed counterpart of this Agreement. 

 

8.4.      Headings. Article and Section headings are used herein are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement.

 

8.5.     Reaffirmation. Each of the Reaffirming Parties hereby:  

 

(a)     consents to this Agreement and the transactions contemplated hereby and hereby confirms its guarantees, pledges, grants of security interests, acknowledgments, obligations and consents under the Collateral Agreement and the other Security Documents and the other Loan Documents to which it is a party and agrees that notwithstanding the effectiveness of this Agreement and the consummation of the transactions contemplated hereby, such guarantees, pledges, grants of security interests, acknowledgments, obligations and consents shall be, and continue to be, in full force and effect except as expressly set forth herein,  

 

(b)     ratifies the Security Documents and the other Loan Documents to which it is a party,  

 

(c)     confirms that all of the Liens and security interests created and arising under the Security Documents to which it is a party remain in full force and effect on a continuous basis, unimpaired, uninterrupted and undischarged, and having the same perfected status and priority as collateral security for the Obligations as existed prior to giving effect to this Agreement,  

 

(d)     agrees that each of the representations and warranties made by each Reaffirming Party in the Security Documents to which it is a party is true and correct as to it in all material respects on and as of the date hereof (unless any such representation or warranty expressly relates to a given date, in which case such representation or warranty was true and correct in all material respects as of such given date), and  

 

(e)     agrees that it shall take any action reasonably requested by the Administrative Agent in order to confirm or effect the intent of this Agreement. 

 

[remainder of page intentionally left blank]

 

11

 

 

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

 

	 	
			GENERAC ACQUISITION CORP.

			
	 	 
	 	 
	 	
			By:

				
			/s/ York A. Ragen

			
	 	 	
			Name: York A. Ragen

			
	 	 	
			Title: Chief Financial Officer

			

 

 

	 	
			GENERAC POWER SYSTEMS, INC.

			
	 	 
	 	 
	 	
			By:

				
			/s/ York A. Ragen

			
	 	 	
			Name: York A. Ragen

			
	 	 	
			Title: Chief Financial Officer

			

 

 

	 	
			GENERAC MOBILE PRODUCTS, LLC

			
	 	 
	 	 
	 	
			By:

				
			/s/ York A. Ragen

			
	 	 	
			Name: York A. Ragen

			
	 	 	
			Title: Secretary and Treasurer

			

 

 

	 	
			MAC, INC.

			
	 	 
	 	 
	 	
			By:

				
			/s/ York A. Ragen

			
	 	 	
			Name: York A. Ragen

			
	 	 	
			Title: Chief Financial Officer

			

 

 

	 	
			CHP HOLDINGS, INC.

			
	 	 
	 	 
	 	
			By:

				
			/s/ York A. Ragen

			
	 	 	
			Name: York A. Ragen

			
	 	 	
			Title: Chief Financial Officer

			

 

 

	 	
			COUNTRY HOME PRODUCTS, INC.

			
	 	 
	 	 
	 	
			By:

				
			/s/ York A. Ragen

			
	 	 	
			Name: York A. Ragen

			
	 	 	
			Title: Chief Financial Officer

			

 

 

Signature Page to Replacement Term Loan Amendment

 

 

 

	 	
			ROUTE 22A & 1 MAIN LLC

			
	 	 
	 	 
	 	
			By:

				
			/s/ York A. Ragen

			
	 	 	
			Name: York A. Ragen

			
	 	 	
			Title: Chief Financial Officer

			

 

 

2

 

 

	 	
			JPMORGAN CHASE BANK, N.A., as Administrative Agent

			
	 	 
	 	 
	 	
			By:

				
			/s/ Brian L. Grossman

			
	 	 	
			Name: Brian L. Grossman

			
	 	 	
			Title: Managing Director

			

 

 

Signature Page to Replacement Term Loan Amendment

 

 

   

CONTINUING TERM LENDER ADDENDUM TO THE REPLACEMENT TERM LOAN AMENDMENT 

IN RESPECT OF THE

CREDIT AGREEMENT DATED AS OF FEBRUARY 9, 2012, 

AS AMENDED AND RESTATED AS OF MAY 30, 2012

AS FURTHER AMENDED AND RESTATED AS OF MAY 31, 2013

AND AS FURTHER AMENDED AS OF MAY 18, 2015

 

This Lender Addendum (this “Continuing Term Lender Addendum”) is referred to in, and is a signature page to, the Replacement Term Loan Amendment (the “Agreement”) to that certain Credit Agreement dated as of February 9, 2012, as amended and restated as of May 30, 2012, as further amended and restated as of May 31, 2013 and as further amended by the First Amendment dated as of May 18, 2015 (the “Credit Agreement”), among Generac Acquisition Corp., a Delaware corporation (“Holdings”), Generac Power Systems, Inc., a Wisconsin corporation (the “Borrower”), the several lenders from time to time party thereto (the “Lenders”), JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”), and the other agents and parties party thereto. Capitalized terms used but not defined in this Continuing Term Lender Addendum have the meanings assigned to such terms in the Agreement or the Credit Agreement, as applicable.

 

By executing this Continuing Term Lender Addendum, the undersigned institution agrees (A) to the terms of the Agreement and the Credit Agreement as amended thereby (the “Amended Credit Agreement”) and (B) on the terms and subject to the conditions set forth in the Agreement and the Amended Credit Agreement, to continue its Existing Term Loans as 2016 New Term Loans on the Effective Date in the amount of its 2016 New Term Loan Commitment (it being understood that such continuation shall be effected pursuant to a cashless roll).

 

	
			Name of 

			Institution:

				
			____________________________________________________________________________________________________________

			

 

	
			Executing as a Continuing Term Lender1:

			 

			By:

			_________________________________________

			Name:

			Title:

			 

			For any institution requiring a second signature line:

			 

			By:

			_________________________________________

			Name:

			Title:

			 

				 	 

 

 

 

1 In no event shall any Lender be able to continue/roll more than their allocation, which allocation shall be at the discretion of the Administrative Agent

 

 

 

 

REPLACEMENT TERM LENDER ADDENDUM TO THE REPLACEMENT TERM LOAN AMENDMENT 

IN RESPECT OF THE

CREDIT AGREEMENT DATED AS OF FEBRUARY 9, 2012, 

AS AMENDED AND RESTATED AS OF MAY 30, 2012

AS FURTHER AMENDED AND RESTATED AS OF MAY 31, 2013

AND AS FURTHER AMENDED AS OF MAY 18, 2015

 

This Lender Addendum (this “Replacement Term Lender Addendum”) is referred to in, and is a signature page to, the Replacement Term Loan Amendment (the “Agreement”) to that certain Credit Agreement dated as of February 9, 2012, as amended and restated as of May 30, 2012, as further amended and restated as of May 31, 2013 and as further amended by the First Amendment dated as of May 18, 2015 (the “Credit Agreement”), among Generac Acquisition Corp., a Delaware corporation (“Holdings”), Generac Power Systems, Inc., a Wisconsin corporation (the “Borrower”), the several lenders from time to time party thereto (the “Lenders”), JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative Agent”), and the other agents and parties party thereto. Capitalized terms used but not defined in this Replacement Term Lender Addendum have the meanings assigned to such terms in the Agreement or the Credit Agreement, as applicable.

 

By executing this Replacement Term Lender Addendum as a Replacement Term Lender, the undersigned institution agrees (A) to the terms of the Agreement and the Credit Agreement as amended thereby (the “Amended Credit Agreement”) and (B) on the terms and subject to the conditions set forth in the Agreement and the Amended Credit Agreement, to provide 2016 New Term Loans on the Effective Date in the amount of such Replacement Term Lender’s 2016 New Term Loan Commitment.

 

	
			Name of 

			Institution:

				
			____________________________________________________________________________________________________________

			

 

	
			Executing as a Replacement Term Lender: 

			 

			By:

			_________________________________________

			Name:

			Title:

			 

			For any institution requiring a second signature line:

			 

			By:

			_________________________________________

			Name:

			Title:Exhibit

Exhibit 10.1

Effective Date:  01 February 2016

CONSULTING SERVICES AGREEMENT

THIS AGREEMENT (“Agreement”) is made between Adamas Pharmaceuticals, Inc., a Delaware corporation (“Adamas”), and John MacPhee, M.P.H. (“Consultant”) (each a “Party” and collectively the “Parties”).

1.   Consulting Services.  Consultant shall provide to Adamas the Consulting Services described in Exhibit A (the “Consulting Services”).

2.      Term, Termination and Survival. The term of this Agreement is for five (5) months from the Effective Date, expiring on June 30, 2016.  This Agreement may be terminated by either Party upon ten (10) business days’ advance written notice to the other Party. Upon expiration or early termination of this Agreement, Consultant shall promptly deliver to Adamas (or certify to the destruction of) all paper and electronic documents and other materials of any nature pertaining to the Consulting Services, together with all documents and other items containing any Proprietary Information. Consultant shall not retain copies of any such documents or other materials after termination or expiration of this Agreement. The obligations set forth in Sections 4 through 6 will survive expiration or termination of this Agreement.  

3.      Compensation. As consideration for Consultant’s performance of the Consulting Services, Adamas shall pay to Consultant the compensation set forth in Exhibit B.

4.      Confidentiality. Consultant recognizes that it may be exposed to, have access to and/or be engaged in the development of information regarding the research, development, manufacturing, sales/marketing, patents, copyrights, trademarks, trade secrets, technology, and other business of Adamas (“Proprietary Information”). Consultant’s obligations regarding Proprietary Information are set forth in Exhibit C.  

4.1.       All Proprietary Information, whether presently existing or developed in the future, will be the sole property of Adamas. In addition, Adamas will be the sole owner of all intellectual property and other rights in connection with the Proprietary Information.

4.2.       Consultant understands that Adamas may receive from third parties information that is confidential or proprietary and that is subject to restrictions on Adamas’ use and disclosure (“Third-Party Information”). Consultant shall maintain the Third-Party Information in confidence and shall not use the Third-Party Information except as permitted by agreement between Adamas and the relevant third party, unless expressly authorized to act otherwise by Adamas.

1900 Powell St. Suite 750    Emeryville, CA 94608
Tel|510.450.3500   Fax|510.428.0519
www.adamaspharma.com

5.          Inventions and Work Product.  “Invention” means any composition of matter, device, method or process, treatment, or improvement thereof discovered, created, made, conceived, or reduced to practice (“Invented”) by Consultant, during the term of this Agreement or in the future, whether patentable or not, and which was Invented by Consultant (i) with the equipment, supplies, facilities, or Proprietary Information of Adamas, or (ii) in the course of providing the Consulting Services. “Work Product” means any written or electronic material created by Consultant arising from its performance of the Consulting Services.

5.1.       Adamas will own all right, title and interest in and to all Work Product and Inventions, all of which will be deemed Proprietary Information.  

5.2.       Consultant shall furnish Adamas with all Work Product as requested by Adamas. Consultant shall promptly disclose all Inventions to Adamas in writing. Consultant hereby assigns to Adamas Consultant’s entire right, title and interest in and to any and all Inventions that are Invented by Consultant, either alone or jointly with others, in the course of performing the Consulting Services, without any obligation of Adamas to pay royalty or any consideration other than as provided in this Agreement. Consultant will, at Adamas’ request, promptly execute a written assignment to Adamas of title of any such Invention and will take reasonable steps to preserve such information as part of the Proprietary Information. Adamas will compensate Consultant at a reasonable rate for the time actually spent by Consultant at Adamas’ request on such assistance.

5.3.       If Adamas is unable, after reasonable effort, to secure Consultant’s signature on any document needed to apply for or prosecute any patent, copyright, or other right or protection relating to an Invention, Consultant hereby designates and appoints Adamas and its duly authorized officers and agents as Consultant’s agent and attorney-in-fact, to act for and on Consultant’s behalf to execute, verify and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of patents, copyrights, and other rights and protections thereon with the same legal force and effect as if executed by the Consultant. Such appointment will be irrevocable and coupled with an interest.

6.      Limitation of Liability; Damages.

6.1            NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY FOR ANY INCIDENTAL, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES WHATSOEVER ARISING OUT OF, CAUSED BY OR RELATED IN ANY WAY TO THE BREACH OF ANY OF ITS OBLIGATIONS UNDER THIS AGREEMENT, EVEN IF SUCH PARTY HAD BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE PARTIES EXPRESSLY AGREE THAT THE ABOVE LIMITATION ON DAMAGES IS AN ALLOCATION OF RISK CONSTITUTING IN PART THE CONSIDERATION FOR THIS AGREEMENT.

Page 2 of 9

6.2             EXCEPT FOR DISPUTES RELATED TO INTELLECTUAL PROPERTY OR PROPRIETARY INFORMATION, IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER PARTY PURSUANT TO THIS AGREEMENT FOR AN AMOUNT THAT EXCEEDS THE TOTAL AMOUNT PAID (OR OWED) BY ADAMAS TO CONSULTANT UNDER THIS AGREEMENT.

7.      Independent Contractor.  Consultant is an independent contractor and not an employee of Adamas. Consultant has no authority to obligate Adamas by contract or otherwise. Consultant will not be eligible for any employee benefits nor will Adamas make deductions from any amounts payable to Consultant for taxes unless otherwise required by law or court of competent jurisdiction. Taxes will be the sole responsibility of Consultant.

8.      Consultant Representations and Warranties. Consultant represents and warrants that:

8.1.            Consultant shall perform the Consulting Services in a workmanlike manner, in accordance with industry standards, and in compliance with all applicable laws and regulations. 

8.2.            Consultant’s performance of this Agreement and the Consulting Services does not and will not breach or conflict with any agreement to which Consultant is or becomes a party.  Consultant has not entered into, and will not enter into during the term of this Agreement, any agreement, written or oral, in conflict with this Agreement.

8.3.            Consultant shall not bring to Adamas or use in the performance of the Consulting Services any materials or documents of a present or former employer of Consultant or of Consultant’s employees, or any materials or documents obtained by Consultant under an obligation of confidentiality imposed by reason of another of Consultant’s contractual relationships, unless such materials or documents are generally available to the public or Consultant has authorization from such present or former employer, client or employee for the possession and unrestricted use of such materials. Consultant understands that Consultant is not to breach any obligation of confidentiality that Consultant has to present or former employers or clients, and agrees to fulfill all such obligations during the term of this Agreement.

9.      Notices.  All notices under this Agreement shall be in writing and deemed effectively given: (a) upon personal delivery to the Party to be notified, (b) when sent by facsimile or email, with confirmation of receipt sent by the same method, (c) five (5) calendar days after having been sent by US mail, or (d) one (1) business day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications will be sent to the Parties at the addresses set forth on the Agreement signature page, or at such other address as a Party may designate by ten (10) days advance written notice to the other Party.

Page 3 of 9

10.         Legal and Equitable Remedies.  Because Consultant’s Consulting Services are personal and unique and because Consultant may have access to and become acquainted with the Proprietary Information, Adamas will have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief without prejudice to any other rights and remedies that Adamas may have for a breach of this Agreement.

11.     Assignment.  The rights and liabilities of the Parties will bind and inure to the benefit of their respective successors, assigns, heirs, executors and administrators, as the case may be; provided, that Consultant may not assign or delegate Consultant’s obligations under this Agreement, either in whole or in part, without the prior written consent of Adamas. Adamas may assign its rights and obligations hereunder to any person or entity that succeeds to all or substantially all of Adamas’ business or that aspect of Adamas’ business in which Consultant is principally involved.

12.         Severability. If one or more of the provisions in this Agreement are deemed unenforceable by law, then such provision will be deemed stricken from this Agreement and the remaining provisions will continue in full force and effect.

13.     Complete Understanding; Modification.  This Agreement and Exhibits constitute the final, exclusive and complete understanding and agreement of the Parties with respect to the subject matter hereof, and supersedes all prior understandings and agreements with respect to the subject matter hereof. This Agreement is entered into without reliance upon any representation, whether oral or written, not stated herein. Any waiver, modification or amendment of any provision of this Agreement will be made in writing and signed by an authorized representative of each Party.

	
						
	Adamas Pharmaceuticals, Inc.
	 
	John MacPhee, M.P.H.
	 

	1900 Powell Street, Suite 750
	 
	905 West End Avenue, #112
	 

	Emeryville, California 94608
	 
	New York, NY 10025
	 

	U.S.A.
	 
	U.S.A.
	 

	Attention: Leonie McConville
	 
	Email:
	 

	Email:lmcconville@adamaspharma.com
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	By:
	/s/ Gregory T. Went, Ph.D.
	 
	/s/ John Macphee, M.P.H.
	 

	 
	Gregory T. Went, Ph.D.
	 
	Signature
	 

	 
	Chief Executive Officer
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	Date:
	2/5/2016
	 
	Date:
	1/27/2016
	 

Page 4 of 9

Exhibit A

Consulting Services

Provide commercial advice and counsel as it relates to launch of ADS-5102

Page 5 of 9

Exhibit B

Compensation

Adamas shall pay Consultant a monthly fee of $21,000.00.  

Consultant shall send its invoices to Adamas’ Accounting Department (accounting@adamaspharma.com). Adamas shall pay all approved invoices within thirty (30) days of receipt. Upon expiration or termination of this Agreement, Consultant shall promptly submit a final invoice for Consulting Services and reimbursable expenses not previously invoiced. Adamas shall promptly pay such invoice, and no further cash compensation or benefits will be owed by Adamas to Consultant.

Page 6 of 9

Exhibit C

Confidentiality

1.      By way of illustration but not limitation, Proprietary Information includes but is not limited to information concerning Adamas’ research, development, data, plans, contractors, collaborators, partners, investors, affiliates or others, training methods and materials, financial information, sales prospects, client lists, inventions, or any other scientific, technical or trade secrets of Adamas or of any third party provided to Adamas under a condition of confidentiality, and any other information disclosed to Consultant, whether in written, oral, electronic  or other form, that is labeled as “confidential” or “proprietary.” The term “trade secrets,” as used in this Agreement, will be given its broadest possible interpretation under California law and will include, without limitation, anything tangible or intangible or electronically kept or stored, which constitutes, represents, evidences or records or any secret scientific, technical, merchandising, production or management information, or any design, process, procedure, formula, invention, improvement or other confidential or Proprietary Information or documents.

2.    Consultant shall keep in confidence and trust all Proprietary Information and shall not reproduce, use or disclose any Proprietary Information without the prior written consent of Adamas, except as required in the ordinary course of performing the Services. Consultant shall restrict dissemination of Proprietary Information only to those of its employees who have a need to know and who are bound to terms of confidentiality and use at least as strict as those in this Agreement; and in preventing disclosure of Proprietary Information to third parties, use the same degree of care as for its own information of similar importance, but no less than reasonable care.

3.    Notwithstanding the foregoing, Consultant will not have any obligations under this Agreement with respect to a specific portion of the Proprietary Information if Consultant can demonstrate with competent evidence that such Proprietary Information: (i) was in the public domain at the time it was disclosed to Consultant; (ii) entered the public domain subsequent to the time it was disclosed to Consultant, through no fault of Consultant; (iii) was already in Consultant’s possession free of any obligation of confidence at the time it was disclosed to Consultant; (iv) was rightfully communicated to Consultant by a third party free of any obligation of confidence subsequent to the time it was disclosed to Consultant; (v) is explicitly approved for release by written authorization of Adamas; or (vi) is ordered to be disclosed by a court of competent jurisdiction, provided timely written notice of such order is given to Adamas to enable it to seek a protective order.

4.    Consultant’s obligations regarding Proprietary Information will survive for a period of ten (10) years after the expiration or termination of this Agreement. 

Page 7 of 9

Effective Date:  01 July 2016    

Amendment #1 to the 
Consulting Services Agreement dated 01 February 2016
 

The Consulting Services Agreement made by and between Adamas Pharmaceuticals, Inc. and John MacPhee, M.P.H. dated 01 February 2016 (the “Agreement”), is amended as set forth below.  Capitalized terms used but not defined in this Amendment #1 will have the same meaning ascribed to them in the Agreement.

		
	1.
	The term of the Agreement is extended.  As amended, the Agreement will expire on December 31, 2016.  Accordingly, the first sentence of Section 2 of the Agreement is replaced in its entirety with the following updated language:

“The term of this Agreement is from February 1, 2016 to December 31, 2016.”
  
		
	2.
	The Compensation language is revised.  Exhibit B of the Agreement is replaced in its entirety with an updated Exhibit B, attached to this Amendment #1 as Attachment I.

Except as expressly modified in this Amendment #1, all of the terms and conditions of the Agreement will continue in full force and effect.

	
						
	Adamas Pharmaceuticals, Inc.
	 
	John MacPhee, M.P.H.
	 

	1900 Powell Street, Suite 750
	 
	905 West End Avenue, #112
	 

	Emeryville, California 94608
	 
	New York, New York 10025
	 

	U.S.A.
	 
	U.S.A.
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	By:
	/s/ Gregory T. Went, Ph.D.
	 
	/s/ John Macphee, M.P.H.
	 

	 
	Gregory T. Went, Ph.D.
	 
	Signature
	 

	 
	Chief Executive Officer
	 
	 
	 
	 

	 
	 
	 
	 
	 
	 

	Date:
	8/5/2016
	 
	Date:
	8/5/2016
	 

            

    

Page 8 of 9

Attachment I
Revised Exhibit B

Compensation

Adamas shall compensate Consultant by the grant of non-qualified stock options equivalent to six months of the current $21,000 monthly stipend ($126,000) is 12,600* options.  Such options shall fully vest one year from their grant date. 

Page 9 of 9

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