Document:

EX-10.5

 Exhibit 10.5 
  

 
 FOURTH AMENDMENT TO 

CREDIT AGREEMENT 
 Dated as of
October 31, 2013 
 among 

CACI INTERNATIONAL INC, 
 as the
Borrower, 
 THE SUBSIDIARIES OF THE BORROWER IDENTIFIED HEREIN, 

as the Guarantors, 
 BANK OF
AMERICA, N.A., 
 as Administrative Agent, Swing Line Lender and L/C Issuer, 

and 
 The Lenders Party Hereto

 Arranged By: 
 MERRILL LYNCH,
PIERCE, FENNER & SMITH, INCORPORATED, 
 J.P. MORGAN SECURITIES LLC, 

WELLS FARGO SECURITIES, LLC, 
 ROYAL
BANK OF CANADA, 
 SUNTRUST ROBINSON HUMPHREY, INC., 

and 
 PNC CAPITAL MARKETS, LLC,

 as Joint Lead Arrangers and Joint Book Managers 
  

 

 FOURTH AMENDMENT 

THIS FOURTH AMENDMENT (this “Amendment”) dated as of October 31, 2013 to the Credit Agreement referenced below is by and
among CACI International Inc, a Delaware corporation (the “Borrower”), the Guarantors identified on the signature pages hereto, the Lenders identified on the signature pages hereto and Bank of America, N.A., in its capacity as
Administrative Agent (in such capacity, the “Administrative Agent”). 
 W I T N E S S E T H 

WHEREAS, revolving credit and term loan facilities have been extended to the Borrower pursuant to the Credit Agreement (as amended, modified,
supplemented, increased and extended from time to time, the “Credit Agreement”) dated as of October 21, 2010 among the Borrower, the Guarantors identified therein, the Lenders identified therein and the Administrative Agent;
and 
 WHEREAS, the Borrower has requested certain modifications to the Credit Agreement and the Lenders party to this Amendment have agreed
to the requested modifications to the Credit Agreement on the terms and conditions set forth herein. 
 NOW, THEREFORE, IN CONSIDERATION of
the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

1. Defined Terms. Capitalized terms used herein but not otherwise defined herein shall have the meanings provided to such terms in the
Credit Agreement. 
 2. Amendments. The Credit Agreement is amended as follows: 

2. 1 The following defined terms are added to Section 1.01 in the proper alphabetical order: 

“Merger Agreement” means that certain Agreement and Plan of Merger dated October 8, 2013 by and among the Borrower, CACI,
Inc.-Federal, CACI Acquisition II, Inc., Six3 Systems Holdings, LLC and the Target. 
 “MLPFS” means Merrill Lynch, Pierce,
Fenner & Smith Incorporated. 
 “Six3 Acquisition” means the acquisition by the Borrower, directly or indirectly,
of all of the outstanding share capital of the Target, pursuant to and in accordance with the Merger Agreement. 
 “Six3 Acquisition
Closing Date” means the date that the Six3 Acquisition is consummated and the funding of the Six3 Facilities occurs. 

“Six3 Acquisition Costs” means (i) the purchase price for the Six3 Acquisition, (ii) the refinancing or repayment of
third party indebtedness for borrowed money of the Target and its Subsidiaries and (iii) fees, costs and expenses incurred in connection with the Six3 Acquisition and the financing therefor. 

“Six3 Facilities” means the Six3 Incremental Term Facilities and Revolving Loans necessary to finance the Six3 Acquisition
Costs on the Six3 Acquisition Closing Date. 

  
 1 

 “Six3 Incremental Term Facility” has the meaning specified in
Section 2.16. 
 “Specified Merger Agreement Representations” means such of the representations made by the
Target with respect to the Target and its subsidiaries in the Merger Agreement as are material to the interests of the Lenders, but only to the extent that the Borrower (or its Affiliate) has the right to terminate its (or its Affiliate’s)
obligations under the Merger Agreement, or decline to consummate the Six3 Acquisition, as a result of a breach of such representations in the Merger Agreement. 

“Specified Representations” means the representations and warranties made in Sections 6.01(a) (as to valid existence)
and (b)(ii), the first clause of Section 6.02, Section 6.02(a), Section 6.04, Section 6.14, Section 6.18 (after giving effect to the consummation of the Six3 Acquisition, the
borrowings under the Six3 Facilities and the payment of the Six3 Acquisition Costs), Section 6.19 (but only with respect to (i) assets with respect to which a lien may be perfected by the filing of a financing statement under the
Uniform Commercial Code, (ii) the pledge and perfection of security interests in Equity Interests of the Borrower’s material, wholly-owned Domestic Subsidiaries (excluding delivery of stock certificates of the Target and its Subsidiaries
to the extent not received from the seller under the Merger Agreement) and (iii) other assets a security interest in which can be provided and perfected after the Borrower’s use of commercially reasonable efforts to do so or without undue
burden or expense) and Section 6.21. 
 “Target” means Six3 Systems Holdings II, Inc., a Delaware corporation.

 2.2 The definition of “Arranger” in Section 1.01 is amended and restated in its entirety to read as follows: 

“Arranger” means each of (a) MLPFS, in its capacity as joint lead arranger and joint book manager, (b) J.P. Morgan
Securities LLC, in its capacity as joint lead arranger and joint book manager, (c) SunTrust Robinson Humphrey, Inc., in its capacity as joint lead arranger and joint book manager, (d) Royal Bank of Canada, in its capacity as joint lead
arranger and joint book manager, (e) Wells Fargo Securities, LLC, in its capacity as joint lead arranger and joint book manager and (f) PNC Capital Markets, LLC, in its capacity as joint lead arranger and joint book manager. 

2.3 The following sentence is added to the end of the definition of “Consolidated Fixed Charges” in Section 1.01: 

If the Six3 Facilities are funded on the Six3 Acquisition Closing Date, then, in calculating Consolidated Fixed Charges for any measurement
period ending prior to the first anniversary of the Six3 Acquisition Closing Date, the cash portion of Consolidated Interest Charges and the Consolidated Scheduled Funded Debt Payments included in Consolidated Fixed Charges for such measurement
period shall be calculated for the period from the Six3 Acquisition Closing Date to the end of the measurement period and annualized. 

  
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 2.4 The definition of “Eurodollar Base Rate” in Section 1.01 is amended and
restated in its entirety to read as follows: 
 “Eurodollar Base Rate” means: 

(a) for any Interest Period with respect to a Eurodollar Rate Loan, the rate per annum equal to the London Interbank Offered
Rate (“LIBOR”) or a comparable or successor rate, which rate is approved by the Administrative Agent, as published on the applicable Reuters screen page (or such other commercially available source providing such quotations as may
be designated by the Administrative Agent from time to time) at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest
Period) with a term equivalent to such Interest Period; and 
 (b) for any interest calculation with respect to a Base Rate
Loan on any date, the rate per annum equal to LIBOR at approximately 11:00 a.m., London time, determined two Business Days prior to such date for Dollar deposits with a term of one month commencing that day; 

provided that to the extent a comparable or successor rate is approved by the Administrative Agent in connection herewith, the approved
rate shall be applied in a manner consistent with market practice; provided, further that to the extent such market practice is not administratively feasible for the Administrative Agent, such approved rate shall be applied in a manner
as otherwise reasonably determined by the Administrative Agent. 
 2.5 The definition of “Fee Letter” in Section 1.01
is amended and restated in its entirety to read as follows: 
 “Fee Letter” means each of the following (individually or
collectively, as the context may require): (a) the letter agreement dated August 31, 2010 among the Borrower, the Administrative Agent and Banc of America Securities LLC in its capacity as an arranger, (b) the letter agreement dated
October 18, 2013 among the Borrower, the Arrangers, Bank of America, JPMorgan Chase Bank, N.A., Wells Fargo Bank, National Association, Royal Bank of Canada, SunTrust Bank and PNC Bank, National Association and (c) the letter agreement
dated October 18, 2013 among the Borrower, MLPFS and Bank of America. 
 2.6 In clause (c)(ii) of the definition of
“Guarantors” in Section 1.01, the term “Specific Loan Party” is deleted and the term “Specified Loan Party” is inserted in lieu thereof. 

2.7 Subject to Section 3 of this Amendment, in the definition of “Permitted Acquisition” in Section 1.01,
the word “and” appearing directly before clause (e) is deleted and clause (e) is amended and restated in its entirety to read as follows: 

(e) the Borrower shall have delivered to the Administrative Agent a Pro Forma Compliance Certificate demonstrating that after giving effect to
such Acquisition on a Pro Forma Basis (i) the Loan Parties shall be in compliance with the financial covenants set forth in Section 8.11 recomputed as of the end of the Applicable Period and (ii) the Consolidated Total Leverage
Ratio recomputed as of the end of the Applicable Period shall be less than 4.0:1.0; and 

  
 3 

 2.8 The definition of “Solvent” or “Solvency” in Section 1.01 is
amended and restated in its entirety to read as follows: 
 “Solvent” or “Solvency” means that (a) the
Fair Value of the assets of the Borrower and its Subsidiaries taken as a whole exceeds their Liabilities, (b) the Present Fair Salable Value of the assets of the Borrower and its Subsidiaries taken as a whole exceeds their Liabilities;
(c) the Borrower and its Subsidiaries taken as a whole do not have Unreasonably Small Capital; and (d) the Borrower and its Subsidiaries taken as a whole will be able to pay their Liabilities as they mature. For purposes of this definition
of “Solvent” or “Solvency”, the terms below shall have the following definitions: 
 (i) “Fair Value” means the
amount at which the assets (both tangible and intangible), in their entirety, of the Borrower and its Subsidiaries taken as a whole would change hands between a willing buyer and a willing seller, within a commercially reasonable period of time,
each having reasonable knowledge of the relevant facts, with neither being under any compulsion to act. 
 (ii) “Present Fair Salable
Value” means the amount that could be obtained by an independent willing seller from an independent willing buyer if the assets of the Borrower and its Subsidiaries taken as a whole are sold with reasonable promptness in an arm’s-length
transaction under present conditions for the sale of comparable business enterprises insofar as such conditions can be reasonably evaluated. 

(iii) “Liabilities” means the recorded liabilities (including contingent liabilities that would be recorded in accordance with GAAP)
of the Borrower and its Subsidiaries taken as a whole, as of the date of determination, determined in accordance with GAAP consistently applied. 

(iv) “Will be able to pay their Liabilities as they mature” means, for the period from the date hereof through the Maturity Date, the
Borrower and its Subsidiaries taken as a whole will have sufficient assets and cash flow to pay their Liabilities as those liabilities mature or (in the case of contingent Liabilities) otherwise become payable, in light of business conducted or
anticipated to be conducted by the Loan Parties as reflected in the projected financial statements and in light of the anticipated credit capacity. 

(v) “Do not have Unreasonably Small Capital” means that the Borrower and its Subsidiaries taken as a whole do not have unreasonably
small capital to conduct their business, it being understood that “unreasonably small capital” depends upon the nature of the particular business or businesses conducted or to be conducted and is based on the needs and anticipated needs
for capital of the business conducted or anticipated to be conducted by the Loan Parties as reflected in the projected financial statements and in light of the anticipated credit capacity. 

2.9 The following new Section 2.16 is added to Article II: 

2.16 Six3 Incremental Term Facilities. 

This Agreement and the other Loan Documents may be amended (or amended and restated) at any time to add one or more tranches of
term loans that are used to finance all or a portion of the Six3 Acquisition Costs (each, a “Six3 Incremental Term  

  
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Facility”), at the option of the Borrower by an agreement in writing entered into by the Borrower, the Administrative Agent and each Person (including any existing Lender) that agrees
to provide a portion of such Six3 Incremental Term Facility. No existing Lender shall be under any obligation to provide any commitment to a Six3 Incremental Term Facility and any such decision whether to provide a commitment to a Six3 Incremental
Term Facility shall be in such Lender’s sole and absolute discretion. The commitments under the Six3 Incremental Term Facilities and credit extensions thereunder shall constitute Commitments and Credit Extensions under, and shall be entitled to
all the benefits afforded by, this Agreement and the other Loan Documents, and shall, without limiting the foregoing, benefit equally and ratably from the Guarantees and security interests created by the Collateral Documents. Any such amendment (or
amendment and restatement) effected pursuant to this Section 2.16 shall amend the provisions of this Agreement and the other Loan Documents to set forth the terms of each Six3 Incremental Term Facility established thereby and to effect
such other changes (including changes to the provisions of Section 2.05) as the Loan Parties and the Administrative Agent shall deem necessary or advisable in connection with the establishment of any such Six3 Incremental Term Facility.

 2.10 Section 3.03 is amended and restated in its entirety to read as follows: 

3.03 Inability to Determine Rates. 

If in connection with any request for a Eurodollar Rate Loan or a conversion to or continuation thereof (a) the
Administrative Agent determines that (i) Dollar deposits are not being offered to banks in the London interbank eurodollar market for the applicable amount and Interest Period of such Eurodollar Rate Loan or (ii) adequate and reasonable
means do not exist for determining the Eurodollar Base Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan or in connection with an existing or proposed Base Rate Loan (in each case with respect to clause
(a) above, “Impacted Loans”) or (b) the Administrative Agent or the Required Lenders determine that for any reason the Eurodollar Base Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan does
not adequately and fairly reflect the cost to such Lenders of funding such Eurodollar Rate Loan, the Administrative Agent will promptly so notify the Borrower and each Lender. Thereafter, (x) the obligation of the Lenders to make or maintain
Eurodollar Rate Loans shall be suspended (to the extent of the affected Eurodollar Rate Loans or Interest Periods) and (y) in the event of a determination described in the preceding sentence with respect to the Eurodollar Rate component of the
Base Rate, the utilization of the Eurodollar Rate component in determining the Base Rate shall be suspended, in each case until the Administrative Agent upon the instruction of the Required Lenders revokes such notice. Upon receipt of such notice,
the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans (to the extent of the affected Eurodollar Rate Loans or Interest Periods) or, failing that, will be deemed to have converted such
request into a request for a Borrowing of Base Rate Loans in the amount specified therein. 
 Notwithstanding the foregoing,
if the Administrative Agent has made the determination described in clause (a) of the first sentence of this Section, the Administrative Agent, in consultation with the Borrower and the affected Lenders, may establish an alternative interest
rate for the Impacted Loans, in which case, such 

  
 5 

 
alternative rate of interest shall apply with respect to the Impacted Loans until (1) the Administrative Agent revokes the notice delivered with respect to the Impacted Loans under clause
(a) of the first sentence of this section, (2) the Administrative Agent notifies the Borrower that such alternative interest rate does not adequately and fairly reflect the cost to such Lenders of funding the Impacted Loans, or
(3) any Lender determines that any Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for such Lender or its applicable Lending Office to make, maintain or fund Loans whose interest is determined by
reference to such alternative rate of interest or to determine or charge interest rates based upon such rate or any Governmental Authority has imposed material restrictions on the authority of such Lender to do any of the foregoing and provides the
Administrative Agent and the Borrower written notice thereof. 
 2.11 The following sentence is added to the end of
Section 5.02: 
 Notwithstanding the foregoing, (i) the only representations the accuracy of which shall be a condition to
the availability of the Six3 Facilities on the Six3 Acquisition Closing Date shall be the Specified Representations and the Specified Merger Agreement Representations and (ii) Section 5.02(b) shall not be a condition to the
availability of the Six3 Facilities on the Six3 Acquisition Closing Date. 
 2.12 Section 6.18 is amended and restated in its
entirety to read as follows: 
 6.18 Solvency. 

The Borrower and its Subsidiaries are Solvent on a consolidated basis. 

2.13 Section 8.02(h) is amended and restated in its entirety to read as follows: 

(h) Permitted Acquisitions and the Six3 Acquisition; 

2.14 Section 8.03(f)(ii) is amended and restated in its entirety to read as follows: 

(ii) after giving effect to the incurrence of such Indebtedness and the application of the proceeds thereof on a Pro Forma Basis the Loan
Parties shall be in compliance with the financial covenants set forth in Section 8.11 recomputed as of the end of the Applicable Period; 

2.15 Section 8.05(b) is amended and restated in its entirety to read as follows: 

(b) after giving effect to such Disposition on a Pro Forma Basis the Loan Parties shall be in compliance with the financial covenants set forth
in Section 8.11 recomputed as of the end of the Applicable Period;  
 2.16 Subject to Section 3 of this
Amendment, Section 8.06(d)(ii) is amended and restated in its entirety to read as follows: 
 (ii) after giving effect to such
Restricted Payment on a Pro Forma Basis the Loan Parties shall be in compliance with the financial covenants set forth in Section 8.11 recomputed as of the end of the Applicable Period and 

  
 6 

 2.17 Section 8.06(f)(ii) is amended and restated in its entirety to read as follows:

 (ii) after giving effect to such Restricted Payment on a Pro Forma Basis the Loan Parties shall be in compliance with the financial
covenants set forth in Section 8.11 recomputed as of the end of the Applicable Period. 
 2.18 Subject to Section 3
of this Amendment, clauses (a), (c) and (d) of Section 8.11 are amended and restated in their entireties to read as follows: 

(a) [Reserved]. 
 (c)
Consolidated Fixed Charge Coverage Ratio. Permit the Consolidated Fixed Charge Coverage Ratio as of the end of any fiscal quarter of the Borrower to be less than 2.0:1.0. 

(d) Convertible Subordinated Notes. If on December 31, 2013 the aggregate outstanding principal amount of the Convertible
Subordinated Notes is greater than $150 million, then, for so long as the aggregate outstanding principal amount of the Convertible Subordinated Notes is in excess of $150 million, permit Liquidity to be less than $300 million. 

2.19 Section 8.12(a)(iv)(B) is amended and restated in its entirety to read as follows: 

(B) after giving effect to such prepayment on a Pro Forma Basis the Loan Parties shall be in compliance with the financial covenants set forth
in Section 8.11 recomputed as of the end of the Applicable Period. 
 3. Amendments Subject to Acquisition Closing.
Notwithstanding the foregoing or anything else to the contrary in this Amendment, the amendments set forth in Sections 2.7, 2.16 and 2.18 of this Amendment shall not be effective unless and until the Six3 Acquisition Closing
Date occurs (it being acknowledged, for the avoidance of doubt, that the amendments set forth in Sections 2.7, 2.16 and 2.18 of this Amendment shall never become effective if the Six3 Acquisition is not consummated using the
proceeds of the Six3 Facilities). As used in this Section 3, the terms “Six3 Acquisition Closing Date”, “Six3 Acquisition” and “Six3 Facilities” are used as defined in Section 2.1 above. 

4. Conditions Precedent. This Amendment shall become effective as of the date hereof upon receipt by the Administrative Agent of
executed counterparts of this Amendment executed by the Loan Parties and the Required Lenders. 
 5. Amendment is a Loan Document.
This Amendment is a Loan Document and all references to a “Loan Document” in the Credit Agreement and the other Loan Documents (including, without limitation, all such references in the representations and warranties in the Credit
Agreement and the other Loan Documents) shall be deemed to include this Amendment. 
 6. Representations and Warranties; No Default.
Each Loan Party represents and warrants to the Administrative Agent and each Lender that after giving effect to this Amendment, (a) the representations and warranties of each Loan Party contained in the Credit Agreement or any other Loan
Document are true and correct in all material respects on and as of the date hereof, except to the extent that (i) such representations and warranties specifically refer to an earlier date, in which case such representations and warranties are
true and correct in all material respects as of such earlier date, and (ii) such representations and warranties are qualified as to materiality, in which case they are true and correct in all respects as of such date (or such earlier date), and
(b) no Default exists. 

  
 7 

 7. Reaffirmation of Obligations. Each Loan Party (a) acknowledges and consents to all
of the terms and conditions of this Amendment, (b) affirms all of its obligations under the Loan Documents and (c) agrees that this Amendment does not operate to reduce or discharge such Loan Party’s obligations under the Loan
Documents (except as expressly set forth in Section 2 above). 
 8. Reaffirmation of Security Interests. Each Loan Party
(a) agrees that, notwithstanding the effectiveness of this Amendment, the Security Agreement and each of the other Collateral Documents continue to be in full force and effect and are not impaired or adversely affected in any manner whatsoever,
(b) confirms its guaranty of the Obligations and its grant of a security interest pursuant to the Collateral Documents in its assets that constitute Collateral as collateral therefor, all as provided in the Loan Documents as originally executed
and (c) acknowledges that such guaranty and grant continues in full force and effect in respect of, and to secure, the Obligations under the Credit Agreement and the other Loan Documents. 

9. No Other Changes. Except as modified hereby, all of the terms and provisions of the Loan Documents shall remain in full force and
effect. 
 10. Counterparts; Delivery. This Amendment may be executed in counterparts (and by different parties hereto in 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 this Amendment by facsimile or other electronic imaging means shall be
effective as an original. 
 11. Governing Law. This Amendment shall be deemed to be a contract made under, and for all purposes
shall be construed in accordance with, the laws of the State of New York. 
 [SIGNATURE PAGES FOLLOW] 

  
 8 

 IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be duly executed as of the
date first above written. 
  

			
	BORROWER:	  	CACI INTERNATIONAL INC, a Delaware corporation

  

					
	By:	 	 /s/ Thomas A. Mutryn
	 	
	Name:	 	Thomas A. Mutryn	 	
	Title:	 	Executive Vice President, CFO & Treasurer	 	

  

			
	GUARANTORS:	  	CACI PRODUCTS COMPANY, a Delaware corporation
		  	CACI PRODUCTS COMPANY CALIFORNIA, a California corporation
		  	CACI, INC.-FEDERAL, a Delaware corporation
		  	CACI, INC.-COMMERCIAL, a Delaware corporation
		  	CACI TECHNOLOGIES, INC., a Virginia corporation
		  	CACI DYNAMIC SYSTEMS, INC., a Virginia corporation
		  	CACI PREMIER TECHNOLOGY, INC., a Delaware corporation
		  	CACI MTL SYSTEMS, INC., a Delaware corporation
		  	CACI SYSTEMS, INC., a Virginia corporation
		  	CACI-CMS INFORMATION SYSTEMS, INC, a Virginia corporation
		  	CACI ENTERPRISE SOLUTIONS, INC., a Delaware corporation
		  	R.M. VREDENBURG & CO., a Virginia corporation
		  	CACI-WGI, INC., a Delaware corporation
		  	CACI SECURED TRANSFORMATIONS, INC., a Florida corporation
		  	CACI-NSR, INC., a Delaware corporation
		  	CACI TECHNOLOGY INSIGHTS, INC., a Virginia corporation
		  	CACI-ATHENA, INC., a Delaware corporation
		  	BUSINESS DEFENSE AND SECURITY CORPORATION,
		  	a Virginia corporation
		  	CACI-ISS, INC., a Delaware corporation
		  	CACI-SYSTEMWARE INC., a California corporation
		  	APPLIED SYSTEMS RESEARCH, INC., a Virginia corporation
		  	TECHNIGRAPHICS, INC., an Ohio corporation
		  	PANGIA TECHNOLOGIES, LLC, a Nevada limited liability company
		  	DELTA SOLUTIONS AND TECHNOLOGIES, INC. a Virginia corporation
		  	ADVANCED PROGRAMS GROUP, LLC, a Virginia limited liability company
		  	APG INTEL, LLC, a Virginia limited liability company
		  	PARADIGM HOLDINGS, INC. Nevada corporation
		  	PARADIGM SOLUTIONS CORPORATION, a Maryland corporation
		  	TRINITY INFORMATION MANAGEMENT SERVICES, INC.
		  	a Nevada corporation
		  	EMERGINT TECHNOLOGIES, INC., a Georgia corporation
		  	IDL SOLUTIONS, INC., a Wisconsin corporation

  

					
	By:	 	 /s/ Thomas A. Mutryn
	 	
	Name:	 	Thomas A. Mutryn	 	
	Title:	 	Executive Vice President, CFO & Treasurer	 	

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

  

					
	By:	 	 /s/ Roberto Salazar
	 	
	Name:	 	Roberto Salazar	 	
	Title:	 	Vice President	 	

			
	LENDERS:	  	BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender

  

					
	By:	 	 /s/ Michael J. Radcliffe
	 	
	Name:	 	Michael J. Radcliffe	 	
	Title:	 	Senior Vice President	 	
		
	JPMORGAN CHASE BANK, N.A.	 	
			
	By:	 	 /s/ Anthony Galea
	 	
	Name:	 	Anthony Galea	 	
	Title:	 	Vice President	 	
		
	SUNTRUST BANK	 	
			
	By:	 	 /s/ Keith Cox
	 	
	Name:	 	Keith Cox	 	
	Title:	 	Managing Director	 	
		
	 WELLS FARGO BANK, NATIONAL ASSOCIATION
	 	
			
	By:	 	 /s/ Scott Santa Cruz
	 	
	Name:	 	Scott Santa Cruz	 	
	Title:	 	Managing Director	 	
		
	PNC BANK, NATIONAL ASSOCIATION	 	
			
	By:	 	 /s/ Crissola K. Talsania
	 	
	Name:	 	Crissola K. Talsania	 	
	Title:	 	Vice President	 	
		
	ROYAL BANK OF CANADA	 	
			
	By:	 	 /s/ Richard C. Smith
	 	
	Name:	 	Richard C. Smith	 	
	Title:	 	Authorized Signatory	 	
		
	BARCLAYS BANK PLC	 	
			
	By:	 	 /s/ Irina Dimova
	 	
	Name:	 	Irina Dimova	 	
	Title:	 	Vice PresidentEX-10.1

 Exhibit 10.1 

October 15, 2013 
 William Smith 

5271 SE Columbia Way, Suite 200 
 Vancouver, WA 98661 

Northwest Pipe Company, an Oregon corporation (the “Company”), considers the establishment and maintenance of a sound and vital
management to be essential to protecting and enhancing the best interest of the Company and its shareholders. In this connection, the Company recognizes that, as is the case with many publicly held corporations, the possibility of a Change in
Control may exist and that such possibility, and the uncertainty and questions which it may raise among management, may result in the departure or distraction of management personnel to the detriment of the Company and its shareholders. Accordingly,
the Board of Directors of the Company (the “Board”) has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Company’s management to their assigned
duties without distraction in circumstances arising from the possibility of a Change in Control of the Company. 
 In order to induce you to
remain in the employ of the Company, this letter agreement, which has been approved by the Board, sets forth the severance benefits which the Company agrees will be provided to you in the event your employment with the Company is terminated
subsequent to a “Change in Control” of the Company under the circumstances described below. 
 1. Right to Terminate. The
Company or you may terminate your employment at any time, subject to the Company’s obligations to provide the benefits hereinafter specified in accordance with the terms hereof. 

2. Term of Agreement. This Agreement shall commence on the date hereof and shall continue in effect until October 14, 2014;
provided, however, that commencing on October 14, 2014 and each October 14 thereafter, the term of this Agreement shall automatically be extended for one additional year unless at least 90 days prior to such October 14, 2014 date, the
Company or you shall have given notice that this Agreement shall not be extended; provided, however, that this Agreement shall continue in effect for a period of twenty-four (24) months beyond the term provided herein if a Change in Control, as
defined in Section 3 hereto shall have occurred during such term. Notwithstanding anything in this Section 2 to the contrary, this Agreement shall terminate if you or the Company terminate your employment prior to a Change in Control as
defined in Section 3 hereof. 

 3. Change in Control; Person. 

3.1 For purposes of this Agreement, a “Change in Control” shall mean the occurrence of any of the following events: 

3.1.1 The approval by the shareholders of the Company of: 

(a) any consolidation, merger or plan of share exchange involving the Company (a “Merger”) in which the Company is not the
continuing or surviving corporation or pursuant to which shares of Common Stock of the Company (“Company Shares”) would be converted into cash, securities or other property, other than a Merger involving Company Shares in which the holders
of Company Shares immediately prior to the Merger have the same proportionate ownership of common stock of the surviving corporation immediately after the Merger, 

(b) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, the
assets of the Company; or 
 (c) the adoption of any plan or proposal for the liquidation or dissolution of the Company. 

3.1.2 At any time during a period of two consecutive years, individuals who at the beginning of such period constituted the Board
(“Incumbent Directors”) shall cease for any reason to constitute at least a majority thereof unless each new director elected during such two-year period was nominated or elected by two-thirds of the Incumbent Directors then in office and
voting (with new directors nominated or elected by two-thirds of the Incumbent Directors also being deemed to be Incumbent Directors); or 

3.1.3 Any Person (as hereinafter defined) shall, as a result of a tender or exchange offer, open market purchases, or privately negotiated
purchases from anyone other than the Company, have become the beneficial owner (within the meaning of Rule 13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of securities of the Company ordinarily having the right to vote for
the election of directors (“Voting Securities”) representing thirty percent (30%) or more of the combined voting power of the then outstanding Voting Securities. 

Notwithstanding anything in the foregoing to the contrary, unless otherwise determined by the Board, no Change in Control shall be deemed to
have occurred for purposes of this Agreement if (1) you acquire (other than on the same basis as all other holders of the Company Shares) an equity interest in an entity that acquires the Company in a Change in Control otherwise described under
subparagraph 3.1.1 above, or (2) you are part of a group that constitutes a Person which becomes a beneficial owner of Voting Securities in a transaction that otherwise would have resulted in a Change in Control under subparagraph 3.1.3 above.

 3.2 For purposes of this Agreement, the term “Person” shall mean and include any individual, corporation, partnership, group,
association or other “person,” as such term is used in Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”), other than the Company or any employee benefit plan(s) sponsored
by the Company. 

  
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 4. Termination Following Change In Control. If a Change in Control shall have occurred,
you shall be entitled to the benefits provided in Section 5.3 hereof upon the termination of your employment within twenty-four (24) months after such Change in Control unless such termination is (a) because of your death, (b) by
the Company for Cause or Disability or (c) by you other than for Good Reason (as all such capitalized terms are hereinafter defined). 

4.1 Disability. Termination by the Company of your employment based on “Disability” shall mean termination because of your
absence from your duties with the Company on a full-time basis for one hundred eighty (180) consecutive days as a result of your incapacity due to physical or mental illness, unless within thirty (30) days after Notice of Termination (as
hereinafter defined) is given to you following such absence you shall have returned to the full-time performance of your duties. 
 4.2
Cause. Termination by the Company of your employment for “Cause” shall mean termination upon (a) the willful and continued failure by you to substantially perform your reasonably assigned duties with the Company consistent with
those duties assigned to you prior to the Change in Control (other than any such failure resulting from your incapacity due to physical or mental illness) which failure shall not have been corrected within thirty (30) days after a demand for
substantial performance is delivered to you by the Chairman of the Board or President of the Company which specifically identifies the manner in which such executive believes that you have not substantially performed your duties, or (b) the
willful engaging by you in illegal conduct which is materially and demonstrably injurious to the Company. For purposes of this paragraph 4.2, no act, or failure to act, on your part shall be considered “willful” unless done, or omitted to
be done, by you in knowing bad faith and without reasonable belief that your action or omission was in, or not opposed to, the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by you in good faith and in the best interests of the corporation. Notwithstanding the foregoing, you shall
not be deemed to have been terminated for Cause unless and until there shall have been delivered to you a copy of a resolution duly adopted by the affirmative vote of not less than two-thirds of the entire membership of the Board at a meeting of the
Board called and held for the purpose (after reasonable notice to you and an opportunity for you, together with your counsel, to be heard before the Board), finding that in the good faith opinion of the Board you were guilty of the conduct set forth
above in (a) or (b) of this paragraph 4.2 and specifying the particulars thereof in detail. 
 4.3 Good Reason.
Termination by you of your employment for “Good Reason” shall mean termination based on: 
 4.3.1 a change in your status, title,
position(s) or responsibilities as an officer of the Company which, in your judgment (which shall be exercised in good faith), constitutes an adverse change from your status, title, position(s) and responsibilities as in effect immediately prior to
the Change in Control, or the assignment to you of any duties or responsibilities which, in your judgment (which shall be exercised in good faith), are inconsistent 

  
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with such status, title or position(s), or any removal of you from or any failure to reappoint or reelect you to such position(s), except in connection with the termination of your employment for
Cause, Disability or as a result of your death or by you other than for Good Reason; 
 4.3.2 a reduction by the Company in your base
salary as in effect immediately prior to the Change in Control; 
 4.3.3 the failure by the Company to continue in effect any Plan (as
hereinafter defined) in which you are participating at the time of the Change in Control (or Plans providing you with at least substantially similar benefits) other than as a result of the normal expiration of any such Plan in accordance with its
terms as in effect at the time of the Change in Control, or the taking of any action, or the failure to act, by the Company which would adversely affect your continued participation in any of such Plans on at least as favorable a basis to you as is
the case on the date of the Change in Control or which would materially reduce your benefits in the future under any of such Plans or deprive you of any material benefit enjoyed by you at the time of the Change in Control; 

4.3.4 the failure by the Company to provide and credit you with the number of paid vacation days to which you are then entitled in accordance
with the Company’s normal vacation policy as in effect immediately prior to the Change in Control; 
 4.3.5 the Company’s
requiring you to be based anywhere other than within ten (10) miles of where your office is located immediately prior to the Change in Control except for required travel on the Company’s business to an extent substantially consistent with
the business travel obligations which you undertook on behalf of the Company prior to the Change in Control; 
 4.3.6 the failure by the
Company to obtain from any Successor (as hereinafter defined) the assumption or assent to this Agreement contemplated by Section 6 hereof within thirty (30) days after a Change in Control; or 

4.3.7 any purported termination by the Company of your employment which is not effected pursuant to a Notice of Termination satisfying the
requirements of paragraph 4.4 below (and, if applicable, paragraph 4.2 above); and for purposes of this Agreement no such purported termination shall be effective. 

For purpose of this Agreement, “Plan” shall mean any compensation plan such as an incentive, stock option or restricted stock plan
or any employee benefit plan such as a thrift, pension, profit sharing, medical, disability, accident, life insurance, or relocation plan or policy or any other plan, program or policy of the Company intended to benefit employees. 

4.4 Notice of Termination. Any purported termination by the Company or by you following a Change in Control shall be communicated by
written Notice of Termination to the other party hereto. For purposes of this Agreement, a “Notice of Termination” shall mean a notice which shall indicate the specific termination provision in this Agreement relied upon and shall set
forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the provision so indicated. 

  
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 4.5 Date of Termination. “Date of Termination” shall mean (a) if your
employment is to be terminated for Disability, thirty (30) days after Notice of Termination is given (provided that you shall not have returned to the performance of your duties on a full-time basis during such thirty (30) day period),
(b) if your employment is to be terminated by the Company for Cause, the date on which a Notice of Termination is given, and (c) if your employment is to be terminated by you or by the Company for any other reason, the date specified in
the Notice of Termination, which shall be a date no earlier than ninety (90) days after the date on which a Notice of Termination is given, unless an earlier date has been agreed to by the party receiving the Notice of Termination either in
advance of, or after, receiving such Notice of Termination. Notwithstanding anything in the foregoing to the contrary, if the party receiving the Notice of Termination has not previously agreed to the termination, then within thirty (30) days
after any Notice of Termination is given, the party receiving such Notice of Termination may notify the other party that a dispute exists concerning the termination, in which event the Date of Termination shall be the date set either by mutual
written agreement of the parties or by the arbitrators in a proceeding as provided in Section 12 hereof. 
 5. Compensation Upon
Termination or During Disability. 
 5.1 During any period following a Change in Control that you fail to perform your duties as a
result of incapacity due to physical or mental illness, you shall continue to receive your full base salary at the rate then in effect and any benefits or awards under any Plans shall continue to accrue during such period, to the extent not
inconsistent with such Plans, until your employment is terminated pursuant to and in accordance with paragraphs 4.1, 4.4 and 4.5 hereof. Thereafter, your benefits shall be determined in accordance with the Plans then in effect. 

5.2 If your employment shall be terminated for Cause or as a result of your death following a Change in Control of the Company, the Company
shall pay you your full base salary through the Date of Termination at the rate in effect just prior to the time a Notice of Termination is given plus any benefits or awards (including both the cash and stock components) which pursuant to the terms
of any Plans have been earned or become payable, but which have not yet been paid to you. Thereupon the Company shall have no further obligations to you under this Agreement. 

5.3 If within twenty-four (24) months after a Change in Control shall have occurred, as defined in Section 3 above, your employment
by the Company shall be terminated (a) by the Company other than for Cause or Disability or (b) by you for Good Reason, then, by no later than the fifth day following the Date of Termination (except as otherwise provided), you shall be
entitled to, and shall be paid, without regard to any contrary provisions of any Plan, a severance benefit (the “Severance Benefit”) equal to either (x) the Specified Benefits (as defined in subsection 5.3.1 below), or
(y) the Capped Benefit (as defined in subsection 5.3.2 below). You shall be entitled, in your sole discretion, to elect to receive either the Specified Benefits or the Capped Benefit. 

5.3.1 The “Specified Benefits” are as follows: 

(a) the Company shall pay your full base salary through the Date of Termination at the rate in effect just prior to the time a Notice of
Termination is given 

  
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plus any benefits or awards (including both cash and stock components) which pursuant to the terms of any Plans have been earned or become payable, but which have not yet been paid to you
(including amounts which previously had been deferred at your request); 
 (b) as severance pay and in lieu of any further salary for
periods subsequent to the Date of Termination, the Company shall pay to you in a single payment an amount in cash equal to (i) an amount equal to two (2) times the higher of (A) your annual base salary at the rate in effect just prior
to the time a Notice of Termination is given, or (B) your annual base salary in effect immediately prior to the Change in Control of the Company, plus (ii) an amount equal to two (2) times the average of the cash bonuses paid to you
during the previous three years; 
 (c) for a twenty-four (24) month period after the Date of Termination, the Company shall arrange
to provide you and your dependents with life, accident, medical and dental insurance benefits substantially similar to those which you were receiving immediately prior to the Change in Control of the Company. Notwithstanding the foregoing, the
Company shall not provide any benefit otherwise receivable by you pursuant to this paragraph 5.3.1(c) to the extent that a similar benefit is actually received by you from a subsequent employer during such twenty-four (24) month period, and any
such benefit actually received by you shall be reported to the Company; 
 (d) any and all outstanding options to purchase stock of the
Company (or any Successor) held by you shall immediately vest and become exercisable in full; and 
 (e) the Company shall pay you for any
vacation time earned but not taken at the Date of Termination, at an hourly rate equal to your annual base salary as in effect immediately prior to the time a Notice of Termination is given divided by 2080. 

5.3.2 The “Capped Benefit” equals the Specified Benefits, reduced by the minimum amount necessary to prevent any portion of the
Specified Benefits from being a “parachute payment” as defined in Section 280G(b)(2) of the Internal Revenue Code of 1986, as amended (“IRC”), or any successor provision. The amount of the Capped Benefit shall therefore
equal (1) three times the “base amount” as defined in IRC, Section 280G(b)(3)(A) reduced by $1 (One Dollar), and further reduced by (2) the present value of all other payments and benefits you are entitled to receive
from the Company that are contingent upon a Change in Control of the Company within the meaning of IRC Section 280G(b)(2)(A)(i), including accelerated vesting of options and other awards under the Company’s stock option plans, and
increased by (3) all Specified Benefits that are not contingent upon a Change in Control within the meaning of IRC Section 280G(b)(2)(A)(i). If you receive the Capped Benefit, you may determine the extent to which each of the Specified
Benefits shall be reduced. The parties recognize that there is some uncertainty regarding the computations under IRC Section 280G which must be applied to determine the Capped Benefit. Accordingly, the parties agree that, after the Severance
Benefit is paid, the amount of the Capped Benefit may be retroactively adjusted to the extent any subsequent Internal Revenue Service regulations, rulings, audits or other pronouncements establish that the original calculation of the Capped Benefit
was incorrect. In that case, amounts shall be paid or reimbursed between the parties so that you will have received the Severance Benefit you would have received if the Capped Benefit had originally been calculated correctly. 

  
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 5.4 Except as specifically provided above, the amount of any payment provided for in this
Section 5 shall not be reduced, offset or subject to recovery by the Company by reason of any compensation earned by you as the result of employment by another employer after the Date of Termination, or otherwise. Your entitlements under
Section 5.3 are in addition to, and not in lieu of any rights, benefits or entitlements you may have under the terms or provisions of any Plan. 

6. Successors; Binding Agreement. 

6.1 The Company will seek to have any Successor (as hereinafter defined), by agreement in form and substance satisfactory to you, assume the
Company’s obligations under this Agreement or assent to the fulfillment by the Company of its obligations under this Agreement. Failure of the Company to obtain such assumption or assent prior to or at the time a Person becomes a Successor
shall constitute Good Reason for termination by you of your employment and, if a Change in Control of the Company has occurred, shall entitle you immediately to the benefits provided in Section 5.3 hereof upon delivery by you of a Notice of
Termination which the Company, by executing this Agreement, hereby assents to. This Agreement will be binding upon and inure to the benefit of the Company and any Successor (and such Successor shall thereafter be deemed the “Company” for
purposes of this Agreement), but will not otherwise be assignable, transferable or delegable by the Company. For purposes of this Agreement, “Successor” shall mean any Person that succeeds to, or has the practical ability to control
(either immediately or with the passage of time), the Company’s business directly, by merger, consolidation or purchase of assets, or indirectly, by purchase of the Company’s Voting Securities or otherwise. 

6.2 This Agreement shall inure to the benefit of and be enforceable by your personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees and legatees. If you should die while any amount would still be payable to you hereunder if you had continued to live, all such amounts, unless otherwise provided herein, shall be paid in accordance with the
terms of this Agreement to your devisee, legatee or other designee or, if there be no such designee, to your estate. 
 7. Fees and
Expenses. The Company shall pay all legal fees and related legal expenses incurred by you as a result of (i) your termination following a Change in Control of the Company (including all such fees and expenses, if any, incurred in contesting
or disputing any such termination) or (ii) your seeking to obtain or enforce any right or benefit provided by this Agreement. 
 8.
Survival. The respective obligations of, and benefits afforded to, the Company and you as provided in Section 5, 6, 7 and 12 of this Agreement shall survive termination of this Agreement. 

9. Notice. For the purposes of this Agreement, notices and all other communications provided for in this Agreement shall be in writing
and shall be deemed to have been duly given 

  
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when delivered or mailed by United States registered mail, return receipt requested, postage prepaid and addressed to the address of the respective party set forth on the first page of this
Agreement, provided that all notices to the Company shall be directed to the attention of the Chairman of the Board or President of the Company, with a copy to the Secretary of the Company, or to such other address as either party may have furnished
to the other in writing. In accordance herewith, except that notice of change of address shall be effective only upon receipt. 
 10.
Miscellaneous. No provision of this Agreement may be modified, waived or discharged unless such modification, waiver or discharge is agreed to in a writing signed by you and the Chairman of the Board or President of the Company. No waiver by
either party hereto at any time of any breach by the other party hereto of, or of compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party which are not expressly set forth in this
Agreement. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Oregon. 

11. Validity. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and effect. 
 12. Arbitration. Any dispute or controversy
arising under or in connection with this Agreement shall be settled exclusively by arbitration in Portland, Oregon by three arbitrators in accordance with the rules of the American Arbitration Association then in effect. Judgment may be entered on
the arbitrators’ award in any court having jurisdiction; provided, however, that you shall be entitled to seek specific performance of your right to be paid until the Date of Termination during the pendency of any dispute or controversy arising
under or in connection with this Agreement. The Company shall bear all costs and expenses arising in connection with any arbitration proceeding pursuant to this Section 12. 

13. Related Agreements. To the extent that any provision of any other agreement between the Company or any of its subsidiaries and you
shall limit, qualify or be inconsistent with any provision of this Agreement, then for purposes of this Agreement, while the same shall remain in force, the provision of this Agreement shall control and such provision of such other agreement shall
be deemed to have been superseded, and to be of no force or effect, as if such other agreement had been formally amended to the extent necessary to accomplish such purpose. 

14. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to be an original, but all of
which together will constitute one and the same instrument. 

  
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 If this letter correctly sets forth our agreement on the subject matter hereof, kindly sign and
return to the Company the enclosed copy of this letter which will then constitute our agreement on this subject. 
  

	
	Sincerely,
	
	Scott J. Montross
	President and Chief Executive Officer

 AGREED AND ACCEPTED: 
  

	
	  

	William Smith
	Executive Vice President, Water Transmission Group
	

  
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