Document:

EX 10.36_Guardian_Amendment3_Revised

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	Amendment No. 3 to Research Agreements
Guardian - Intermolecular

Amendment No. 3 
to the Research Agreements between
Guardian Industries and Intermolecular

WHEREAS GUARDIAN INDUSTRIES CORP., a Delaware corporation located at 2300 Harmon Road, Auburn Hills, Michigan 48326 (hereinafter referred to as "Guardian") and INTERMOLECULAR, INC., a Delaware corporation located at 3011 North First Street, San Jose, California 95134 (hereinafter referred to as "Intermolecular"), entered into the following agreements – 

		
	1.
	A RESEARCH AGREEMENT effective Feb. 8, 2010 ("Wet Coating Master Agreement"), which incorporates by reference a Task Order effective February 8, 2010, a Task Order effective Jul. 22, 2010, a Task Order effective Oct. 22, 2010, a Task Order effective May 1, 2011 as amended on November 1, 2011 and a Task Order effective July 1, 2012. 

		
	2.
	A RESEARCH AGREEMENT effective Jul. 15, 2010 ("Sputtered Coating Master Agreement"), which incorporates by reference a Task Order effective Jul. 22, 2010, a Task Order effective November 30, 2010, a Task Order effective Jan. 1, 2012 and a Task Order effective June 1, 2012.

		
	3.
	An Amendment Number One to the Wet Coating Master Agreement and the Sputtered Coating Master Agreement effective Jan. 1, 2012 (“Amendment Number One”).

		
	4.
	An Amendment Number Two to the Wet Coating Master Agreement and the Sputtered Coating Master Agreement effective Dec. 31, 2013 (“Amendment Number Two”) (the Wet Coating Master Agreement, the Sputtered Coating Master Agreement, Amendment Number One and Amendment Number Two are herein collectively referred to as “Agreements”);

WHEREAS Guardian and Intermolecular wish to modify the terms of the Agreements;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Guardian and Intermolecular agree to modify the terms of the Agreements by this amendment (hereinafter “Amendment Number Three”) as set forth below :
		
	1.
	AMENDMENT EFFECTIVE DATE

		
	1.1
	This Amendment shall have an effective date of January 31, 2014 (“Amendment Three Effective Date”).

		
	2.
	TERM AND TERMINATION

		
	2.1
	Notwithstanding anything to the contrary in the Agreements, unless terminated by mutual agreement, by convenience as described in Section 2.3 herein or for breach, each of the Agreements shall terminate three (3) years from the Amendment Three Effective Date (hereinafter defined as “Term”).  For the avoidance of doubt, and without limiting the effect of any other survival clauses in the Agreements or the prior Amendments, all licenses, royalty obligations and intellectual property provisions shall survive the expiration or termination of the Agreements. 

		
	2.2
	Either party may terminate this Agreement if the other party has materially breached or defaulted in the performance of any of its material obligations, and such default has continued for sixty (60) days after written notice was provided to the breaching party by the non-breaching party. Termination will be effective at the end of the sixty (60) day period unless the breach has been cured before the expiration of the sixty (60) day period.  For the avoidance of doubt, the parties agree that Intermolecular shall be in material breach if, by way of example, (i) during the Term, Intermolecular fails to provide the Equipment Resources in Section 3.1 (a), (ii) during the Term, Intermolecular fails to perform the activities specified in any Task Order, (iii) during any six (6) month period of the Term, the personnel resources provided by Intermolecular as documented in Intermolecular’s internal records are less than 90% of the resources required to be provided in Section 3.1 (b) or (iv) if the parties negotiating in good faith do not reach agreement under commercially reasonable terms on any new Task Order within sixty (60) days of the first draft of that Task Order provided by either party.

    
	
			
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	Confidential Information
	 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	Amendment No. 3 to Research Agreements
Guardian - Intermolecular

		
	2.3
	Guardian may terminate the Agreements for convenience as described in this Section 2.3 (“Termination for Convenience”).  Guardian may terminate the Agreements for convenience by giving written notice to Intermolecular (a) between October 1, 2014 and October 31, 2014 (“First Window Period”) or (b) between October 1, 2015 and October 31, 2015 (“Second Window Period”); provided that: 

		
	a.
	If termination for convenience under this Section 2.3 is exercised during the First Window Period, Guardian shall continue to pay to Intermolecular all amounts due under Section 4.1 for the period from November 1, 2014 to January 31, 2015, as well as US$1,250,000 as a cancellation fee, and these Agreements will terminate on January 31, 2015; and

		
	b.
	If termination for convenience under this Section 2.3 is exercised during the Second Window Period, Guardian shall continue to pay to Intermolecular all amounts due under Section 4.1 for the period from November 1, 2015 to January 31, 2016, as well as US$625,000 as a cancellation fee, and these Agreements will terminate on January 31, 2016.

		
	3.
	RESOURCES

		
	3.1
	Effective on the Amendment Three Effective Date and for the duration of the Term, Intermolecular agrees to provide

		
	a.
	IMI Equipment/Software Resources(“Equipment Resources”) consisting of 

		
	i.
	[***] ; and 

		
	b.
	IMI Personnel Resources consisting of [***] FTEs for researchers dedicated to the conduct of the Development Program, [***] FTEs for Process Associate/Technician resources;   [***] FTEs for equipment support resources (“FTE Resources”)

to support the tasks related to the Agreements. 
Additionally, Intermolecular estimates that it shall provide [***] FTE resources for [***] in [***] in support of [***].
		
	3.2
	Effective on the Amendment Three Effective Date and for the duration of the Term, Guardian agrees to provide [***] FTE resources to support the tasks related to the Agreements. 

		
	4.
	PROGRAM FEES

		
	4.1
	Effective on the Amendment Three Effective Date and for the duration of the Term, Guardian shall pay Intermolecular $[***] (“Program Fees”) per month in exchange for the resources provided by Intermolecular under Amendment Number Three.

		
	4.2
	It is understood that although the parties have agreed upon Program Fees to cover research under the Agreements, the parties have not defined up-front all the Task Orders for the research.  The parties will work together in good faith to reach agreement on the Task Orders so that the research efforts are continuous.  However, (a) if Intermolecular has completed research tasks on all pending Task Orders, except for defining the written understanding of the Program Technology or Project-Related Technology as described in Section 7.1 but the parties do not reach agreement under commercially reasonable terms on any new Task Order(s);or (b) if  the parties do not reach agreement on the written understanding of the Program Technology or Project-Related Technology as described in Section 7.1 within [***] days after Intermolecular has completed research tasks on that Task Orders (each party exercising good faith to arrive at such written understanding),   Guardian may suspend the payment of Program Fees to a maximum period of [***] days until the parties have reached agreement and Intermolecular has resumed work under one or more new Task Orders.  In the event the payment of Program Fees is suspended under this Section 4.2, the Term will not be extended on account of the suspended time and Guardian will not be required to pay Program Fees attributable to the suspended period. 

		
	4.3
	It is understood that although the parties will work together in good faith to reach agreement on the Task Orders, any Task Order may be terminated by Guardian for convenience with [***] days written notice.

    
	
			
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	Confidential Information
	 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	Amendment No. 3 to Research Agreements
Guardian - Intermolecular

		
	5.
	MODIFICATION OF ROYALTIES FOR WET COATING MASTER AGREEMENT

		
	5.1
	Section 5 of Amendment Number One is further modified by Sections 5.2 and 5.3 of this Amendment Number Three. 

		
	5.2
	Section 11 (“ROYALTIES”) of the Wet Coating Master Agreement is replaced in its entirety by the following new Section 11: 

11.   ROYALTIES.  Guardian acknowledges and agrees that it will pay Intermolecular:
a.  For products covered by any Project-Related Technology developed under one or more of: the Task Order effective February 8, 2010, the Task Order effective Jul. 22, 2010, the Task Order effective Oct. 22, 2010, or the Task Order effective May 1, 2011 as amended on November 1, 2011 under the Wet Coater Master Agreement (“AR Task Orders”), 
		
	i.
	If the license is exclusive, a royalty as defined in Exhibit 2 of this Agreement; or

		
	ii.
	If the license is non-exclusive, a royalty of [***] of Net Sales (as defined in Exhibit 2 of this Agreement).  

b.  For any other Task Orders under this Agreement, the royalties, duration of royalties and method of calculation for the royalties will be defined in the applicable Task Order.  
c.  The Field for the AR Task Orders is defined in Section 5.7 of Amendment Number One.  For all other Task Orders, the Field will be defined in the Task Order.
d.  Any royalties under this Agreement will go for [***] after Guardian's first commercial sale of products based on Project-Related Technology where the Project-Related Technology is covered by intellectual property that is owned or co-owned by Intermolecular, or as long as the unexpired term of at least one issued and valid patent that covers the relevant Project-Related Technology and is owned or co-owned by Intermolecular, whichever is longer, but in either case not to exceed [***] from the completion of the Task Order which gave rise to the development of the relevant Project-Related Technology.
		
	e.
	Guardian will provide quarterly reports to Intermolecular on the sales of licensed products and will pay the applicable royalties on a quarterly basis.  For any royalties that are due to Intermolecular, no later than [***] days after the end of each Guardian fiscal quarter, Guardian will issue Intermolecular a written report containing the number of licensed products shipped by or on behalf of Guardian and all applicable Guardian Affiliates to any Third Parties during such quarter and the corresponding royalty amount to be paid to Intermolecular, Guardian will make all applicable royalty payments at the same time as issuing the report. Each party shall be responsible for all of its own costs of commercializing products or licensing intellectual property rights, including any payments to Third Parties for work done by such Third Parties or for licenses necessary for the manufacture, sale, or use of Products by a party or its Affiliates or sub-licensees.  

		
	5.3
	Intermolecular shall have the right to grant a license to a third party under Intermolecular’s rights in Project-Related Technology developed under the AR Task Orders without any prior approval or consent from Guardian subject to the provisions of this Section;  provided, however, that if Guardian has an exclusive license within the Field, then Intermolecular may not grant a license to any third party within the Field without Guardian’s prior written consent.

		
	a.
	If (i) Intermolecular enters into an agreement with a third party that grants the third party a license under Intermolecular’s rights in Project-Related Technology developed under the AR Task Orders (“Third Party License”), and (ii) the patents and patent applications licensed under such Third Party License that are directly based on or arising from the Project-Related Technology comprise a Percentage Patent Share (as shown below) of all patents and patent applications licensed under such Third Party License, and (iii) Intermolecular actually receives monetary compensation from such third party as consideration for such Third Party License, then Intermolecular agrees to pay Guardian a corresponding Percentage Royalty Share (as shown below)  of the "Adjusted Monetary Compensation" (as defined below)  within [***] days after Intermolecular receives the monetary compensation.  The Adjusted Monetary Compensation is 

    
	
			
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	Confidential Information
	 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	Amendment No. 3 to Research Agreements
Guardian - Intermolecular

defined as the monetary compensation received by Intermolecular minus all of Intermolecular’s expenses related to obtaining such Third Party License as well as any taxes other than taxes based on Intermolecular’s net income.
Percentage Patent Share                Percentage Royalty Share
Greater than or equal to [***]            [***]
Greater than or equal to [***] and less than [***]        [***]
Greater than or equal to [***] and less than [***]        [***]
Less than [***]                    [***]
		
	b.
	In the event Intermolecular grants a license to a third party solely within the Field as defined in Section 5.7 of Amendment Number One where such royalty rate is less than or equal to [***] of the Net Sales of such products by the third party (“Third Party Licensed Products”), the royalty rate payable by Guardian to Intermolecular under Exhibit 2 to the Wet Coating Master Agreement shall decrease to [***] of Net Sales for the duration of royalties owed by Guardian.

		
	5.4
	Whenever Intermolecular is subject to royalty or revenue-share payment obligations in favor of Guardian (whether under the terms of the Agreement or a Task Order), or the proper calculation of royalties payable by Guardian is subject (or tied) to transactions involving Intermolecular and any third parties (such as in Section 5.3(b) above), Guardian will have audit rights over Intermolecular that are parallel and substantially similar to in all respects the audit rights granted to Intermolecular over Guardian under Exhibit 2 to the Wet Coating Master Agreement. 

		
	6.
	CLARIFICATION OF ROYALTIES FOR SPUTTERED COATING MASTER AGREEMENT

		
	6.1
	For Task Orders under the Sputtered Coating Master Agreement, unless otherwise defined in this Amendment Number Three, the Field, royalties, duration of royalties and method of calculation for the royalties will be defined in the applicable Task Order.

		
	6.2
	For the following Task Orders under the Sputtered Coating Master Agreement: Task Order effective Jul. 22, 2010, a Task Order effective November 30, 2010, a Task Order effective Jan. 1, 2012 and a Task Order effective June 1, 2012 (“Past Sputtered Task Orders”) ; royalties under these Task Order will go for [***] after Guardian's first commercial sale of products based on Program Technology where the Program Technology is covered by intellectual property that is owned or co-owned by Intermolecular, or as long as the unexpired term of at least one issued and valid patent that covers the relevant Program Technology and is owned or co-owned by Intermolecular, whichever is longer, but in either case not to exceed [***] from the completion of the Task Order which gave rise to the development of the relevant Program Technology.

		
	6.3
	If a Guardian Product sold incorporates or uses Program Technology from one or more of the Past Sputtered Task Orders and is not used with Program Technology from any further Task Order under the Sputtered Master Agreement, the royalty rate for such product shall be the sum of the royalty rates for each Program Technology as designated in the respective Task Orders, provided that the royalty rate for such product shall not be greater than [***].

		
	6.4
	Whenever Intermolecular is subject to royalty or revenue-share payment obligations in favor of Guardian (whether under the terms of the Agreement or a Task Order), or the proper calculation of royalties payable by Guardian is subject (or tied) to transactions involving Intermolecular and any third parties (such as in Section 5.3(b) above), Guardian will have audit rights over Intermolecular that are parallel and substantially similar to in all respects the audit rights granted to Intermolecular over Guardian under Sections 7.4 and 7.7 of the Sputtered Coating Master Agreement.    

		
	7.
	CLARIFICATION OF TASK ORDER INTELLECTUAL PROPERTY

		
	7.1
	For any Task Order under either of the Agreements, the Task Order will not be completed until the parties have agreed in writing on the licensable Program Technology or Project-Related Technology, if any, that was developed under the Task Order.  Notwithstanding the foregoing, for the purpose of computing time periods to 

    
	
			
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	Confidential Information
	 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	Amendment No. 3 to Research Agreements
Guardian - Intermolecular

trigger minimum royalty obligations, the Task order shall be deemed completed if Guardian has not specified tasks for such Task Order for a period of [***] days.
		
	8.
	RECORDS; INSPECTION.  

		
	8.1
	Intermolecular shall keep complete, true and accurate books of account and records on its own behalf for the purpose of confirming the FTE Resources or Equipment Resources provided under the Agreements.  Such books and records shall be kept at Intermolecular for at least [***] years following the end of the calendar quarter to which they pertain.  Such records will be open for inspection during such [***] year period by an independent auditor reasonably acceptable to Intermolecular, solely for the purpose of verifying resources provided hereunder.  Such inspections may be made no more than once each calendar year, at reasonable times and on reasonable notice.  Inspections conducted under this Section shall be at the expense of Guardian, unless a variation of resources provided exceeding [***] percent [***] of the resources allocated for any period covered by the inspection is established and confirmed in the course of any such inspection, whereupon all reasonable costs relating to the inspection for such period and any amounts as a pro-rata reduction in past Program Fees for resources not provided will be paid promptly by Intermolecular.  Each party agrees to hold in confidence all information pursuant to the Mutual Non-Disclosure Agreement that has been entered into between the parties concerning resources provided and reports, and all information learned in the course of any audit or inspection, except to the extent necessary for that party to reveal such information in order to enforce its rights under this Agreement or if disclosure is required by law.

		
	9.
	MODIFICATION OF FTE RESOURCES OR EQUIPMENT RESOURCES

		
	9.1
	During the Term, Guardian shall have the right to reduce or increase the FTE Resources or the Equipment Resources described in Section 3 above subject to the following:

		
	a.
	In the event Guardian requests a reduction in FTE Resources or Equipment Resources that is not a Termination for Convenience or a suspension of payment under Section 4.2, the following requirements must be satisfied –

		
	i.
	Guardian shall provide Intermolecular with a prior written notification requesting such reduction.  

		
	ii.
	The effective date of such reduction shall be no earlier than the first day of the first calendar month following a [***] month period from the date of such notification.

		
	iii.
	Furthermore, the effective date of such reduction shall be no earlier than [***] years from the Amendment Three Effective Date.

		
	iv.
	In the event of a requested reduction, the associated Program Fees will be prospectively reduced on an equitable basis in proportion to the reduction in FTE Resources or Equipment Resources, but any reduction in associated Program Fees as a result of such reduction for any calendar quarter shall be no greater than the amount of royalties due to Intermolecular under Section 11 of the Wet Coating Master Agreement, Section 5.2 of this Amendment Number Three and the Task Orders of the Sputtered Coating Master Agreement as modified by Section 6.2 of this Amendment Number Three (“Royalties”). Guardian will pay the reduced Program Fees as of the effective date of any reduction.  Additionally, Guardian will pay any difference between the reduced Program Fees and the original Program Fees that is not covered by Royalties on a quarterly basis in accordance with the procedure in Section 5.2 (e).

		
	b.
	In the event Guardian requests an increase in FTE Resources or Equipment Resources, 

		
	i.
	Guardian shall provide Intermolecular with a prior written notification requesting such an increase.  

		
	ii.
	The effective date of such increase shall be no earlier than the first day of the first month following a [***] month period from the date of such notification.

		
	9.2
	Notwithstanding Section 9.1, the total amounts due to Intermolecular under the Program Fees and Royalties during the Term and commencing on the Amendment Three Effective Date shall not be less than $[***] unless 

    
	
			
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	Confidential Information
	 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	Amendment No. 3 to Research Agreements
Guardian - Intermolecular

reduced either through a Termination for Convenience or through a suspension of payment permitted under Section 4.2.
		
	10.
	INTELLECTUAL PROPERTY PROTECTION

The parties intend that provisions and procedures of Sections 6.1, 6.2, 6.3 and 6.4 (as amended) of the Sputtered Coating Master Agreement as they related to Program Technology, shall be adhered to and followed by the parties as well, to the extent practical, in connection with any Project-Related Technology that is owned or co-owned by Intermolecular under the Wet Coating Master Agreement. 
		
	11.
	SURVIVAL OF LICENSES

All rights and licenses granted to Guardian under the Agreements (other than with respect to trademarks) with respect to either Project-Related Technology that is owned or co-owned by Intermolecular under the Wet Coating Master Agreement or the Program Technology under the Sputtered Coating Master Agreement are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of rights to “intellectual property” as defined under Section 101 of the Bankruptcy Code.  The parties agree that Guardian, as a licensee of such rights under the Agreements, shall retain and may fully exercise all of its rights and elections under the Bankruptcy Code.  The parties further agree that, in the event of the commencement of a bankruptcy proceeding by or against Intermolecular under the Bankruptcy Code, Guardian shall be entitled to a complete duplicate of (or complete access to, as appropriate) any such intellectual property and all embodiments of such intellectual property, and same, if not already in its possession, shall be promptly delivered to Guardian upon Guardian’s written request (i) upon any such commencement of a bankruptcy proceeding, unless Intermolecular elects to continue to perform all of its obligations under the Agreements; or (ii) if not delivered under (i) above, upon the rejection of either Agreement by or on behalf of Intermolecular.
		
	12.
	MISCELLANEOUS

This Amendment Number Three shall be deemed to be incorporated into the Agreements and made a part thereof.  All references to the Agreements in any other document shall be deemed to refer to the Agreements as modified by this Amendment Number Three. Except as modified by this Amendment Number Three, all of the terms and conditions of the Agreements shall remain in full force and effect.  In the event that the terms of this Amendment Number Three conflict with the terms of the Agreements, the terms of this Amendment Number Three shall control. 
		
	13.
	EXECUTION

This Amendment Number Three may be executed in any number of counterpart originals, each of which shall be deemed an original instrument for all purposes, but all of which shall comprise one and the same instrument.  This Amendment Number Three may be delivered by electronic mail or facsimile, and a scanned version of this Amendment Number Three shall be binding as an original.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment Number Three to be executed by their duly authorized representatives:

“Guardian”                    “Intermolecular”

Guardian Industries Corp.            Intermolecular, Inc.

Date:    6 February 2014            Date: February 5, 2014

Name:    /s/ Sheldon Davis            Name:    /s/ David E. Lazovsky    

(Print)    Sheldon Davis                (Print)    David E. Lazovsky

Title:    Vice President, Glass Innovation    Title:    President and CEO

    
	
			
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	Confidential Information
	 

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.FourthAmendment

Exhibit 10.1

AMENDMENT NO. 4 TO 
REVOLVING CREDIT AND SECURITY AGREEMENT

This AMENDMENT NO. 4 TO REVOLVING CREDIT AND SECURITY AGREEMENT (this “Amendment”) is made and entered into effective as of September 30, 2014, by and among TECHNICAL CONSUMER PRODUCTS, INC., a Delaware corporation (“TCP”), TECHNICAL CONSUMER PRODUCTS CANADA, INC., an Ontario corporation (“TCP Canada” and, together with TCP, the “Borrowers” and each a “Borrower”), BOWMAN LAMPS, LLC, an Ohio limited liability company (the “Subsidiary Guarantor,” and together with the Borrowers, the “Loan Parties”), the financial institutions which are a party to the Credit Agreement referred to below (collectively, the “Lenders” and each, individually a “Lender”) and PNC BANK, NATIONAL ASSOCIATION, a national banking association, as agent for Lenders (in such capacity, the “Agent”).
PRELIMINARY STATEMENTS
WHEREAS, the Borrowers, the Subsidiary Guarantor, the Lenders and the Agent are parties to that certain Revolving Credit and Security Agreement, dated as of December 11, 2009 (as amended by Amendment No. 1 to Revolving Credit and Security Agreement, dated as of December 17, 2010, among the parties thereto, Amendment No. 2 to Revolving Credit and Security Agreement, dated as of April 28, 2011, among the parties thereto, Amendment No. 3 to Revolving Credit and Security Agreement, dated as of July 25, 2013, among the parties thereto, and as further amended, restated, replaced, extended, supplemented and/or otherwise modified from time to time, the “Credit Agreement”); 
WHEREAS, the Borrowers have requested that Agent allow TCP to incur an intercompany loan made by TCP International Holdings Ltd. (“Swiss Parent”) on or about the date hereof for the purpose of repaying Advances under the Credit Agreement;
WHEREAS, the Loan Parties have requested that the Lenders and Agent amend certain provisions of the Credit Agreement, and subject to the terms and conditions hereof, the Lenders and Agent are willing to do so; and
WHEREAS, the Loan Parties signatory hereto are entering into this Amendment with the understanding and agreement that, except as expressly provided herein, none of Agent’s or any Lender’s rights or remedies as set forth in the Credit Agreement or any Other Document is being waived or modified by the terms of this Amendment.

NOW THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:

ARTICLE I 
DEFINITIONS
1.01    Capitalized terms used in this Amendment are defined in the Credit Agreement, as amended hereby, unless otherwise stated.
ARTICLE II
AMENDMENTS
Effective as of the Effective Date (as defined below):

2.01    Amendment to Section 1.2.      
(a)    Section 1.2 of the Credit Agreement is hereby amended by adding the following definitions in their respective proper alphabetical order:
“Fourth Amendment Effective Date” shall mean September [30], 2014 or such other date as may be agreed to by the parties hereto. 

“Swiss Parent” shall mean TCP International Holdings Ltd.,  a Corporation organized pursuant to article 620 et seq. of the Swiss Code of Obligations.

“TCP Intercompany Loan” shall mean an intercompany loan in the amount of $20,000,000 with an interest rate equal to five percent (5%) per annum made by the Swiss Parent to TCP, evidenced by a promissory note dated as of Fourth Amendment Effective Date, in form and substance satisfactory to Agent and that has been delivered to Agent either endorsed in blank or together with an undated instrument of transfer executed in blank by TCP. 

“Total Availability” at a particular date shall mean an amount equal to (a) the Formula Amount minus (b) the sum of (i) the outstanding amount of Advances plus (ii) fees and expenses for which Borrower is liable but which have not been paid or charged to Borrower’s Account.

(b)    Section 1.2 of the Credit Agreement is hereby further amended by replacing the following defined terms and their respective definitions, in their entirety, as follows:
“Change of Control” shall mean:  
(i) at all times prior to the Restructuring, (a) the occurrence of any event (whether in one or more transactions) which results in a transfer of control of Borrower to a Person who is not an Original Owner or (b) any merger or consolidation of or with Borrower or sale of all or substantially all of the property or assets of Borrower; 
(ii) from and after the effectiveness of the Restructuring and prior to the Fourth Amendment Effective Date, (a) the occurrence of any event (whether in one or more 

2    

transactions) which results in a transfer of control of Holdings to a Person who is not an Original Owner or (b) any merger or consolidation of or with Borrower or sale of all or substantially all of the property or assets of Borrower; and
(iii) from and after the Fourth Amendment Effective Date, (a) any person or group of persons (within the meaning of Section 13(d) or 14(a) of the Exchange Act) shall have acquired beneficial ownership (within the meaning of Rule 13d-3 promulgated by the SEC under the Exchange Act) of 50% or more of the voting Equity Interests of Holdings; (b) during any period of twelve (12) consecutive months, a majority of the members of the board of directors of Holdings cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or (iii) whose election or nomination to that board was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board; or (c) any merger or consolidation of or with Borrower or sale of all or substantially all of the property or assets of Borrower.  
For purposes of this definition, “control of” a Person shall mean the power, direct or indirect (x) to vote 50% or more of the Equity Interests having ordinary voting power for the election of directors (or the individuals performing similar functions) of such Person or (y) to direct or cause the direction of the management and policies of such Person by contract or otherwise.  
“Change of Ownership” shall mean:  
(i) at all times prior to the Restructuring, (a) 50% or more of the Equity Interests of Borrower is no longer owned or controlled by (including for the purposes of the calculation of percentage ownership, any Equity Interests into which any Equity Interests of Borrower held by any of the Original Owners are convertible or for which any such Equity Interests of Borrower or of any other Person may be exchanged and any Equity Interests issuable to such Original Owners upon exercise of any warrants, options or similar rights which may at the time of calculation be held by such Original Owners) Persons who are Original Owners or (b) any merger, consolidation or sale of substantially all of the property or assets of Borrower; 
(ii) from and after the effectiveness of the Restructuring and prior to the Fourth Amendment Effective Date, (a) 50% or more of the Equity Interests of Holdings is no longer owned or controlled by (including for the purposes of the calculation of percentage ownership, any Equity Interests into which any Equity Interests of Holdings held by any of the Original Owners are convertible or for which any such Equity Interests of Holdings or of any other Person may be exchanged and any Equity Interests issuable to such Original Owners upon exercise of any warrants, options or similar rights which may at the time of calculation be held by such Original Owners) Persons who are Original Owners; (b) any merger, consolidation or sale of substantially all of the property or assets of Borrower or Holdings; provided, that the sale by Holdings of any Equity Interests of Borrower shall be 

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deemed a sale of substantially all of Holding’s assets; or (c) 100% of the Equity Interests of Borrower fail to be owned or controlled by Holdings (including for the purposes of the calculation of percentage ownership, any Equity Interests into which any Equity Interests of Borrower held by Holdings are convertible or for which any such Equity Interests of Borrower may be exchanged and any Equity Interests issuable to such Original Owners upon exercise of any warrants, options or similar rights which may at the time of calculation be held by Holdings); and 
(iii) from and after the Fourth Amendment Effective Date, (a) any person or group of persons (within the meaning of Section 13(d) or 14(a) of the Exchange Act) shall have acquired beneficial ownership (within the meaning of Rule 13d-3 promulgated by the SEC under the Exchange Act) of 50% or more of the voting Equity Interests of Holdings; (b) during any period of twelve (12) consecutive months, a majority of the members of the board of directors of Holdings cease to be composed of individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board was approved by individuals referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or (iii) whose election or nomination to that board was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or nomination at least a majority of that board; or (c) any merger or consolidation of or with Borrower or Holdings or sale of all or substantially all of the property or assets of Borrower or Holdings; provided, that the sale by Holdings of any Equity Interests of Borrower shall be deemed a sale of substantially all of Holding’s assets.  
“EBITDA” shall mean for any period the sum of (i) Earnings Before Interest and Taxes for such period plus (ii) depreciation expenses for such period, plus (iii) amortization expenses for such period, plus (iv) non-cash expenses for employee share based compensation for such period.

“Senior Debt Payments” shall mean and include all cash actually expended by Borrower to make (a) interest payments on any Advances hereunder, plus (b) payments for all fees, commissions and charges set forth herein and with respect to any Advances, plus (c) capitalized lease payments, plus (d) payments with respect to any other Indebtedness for borrowed money (including, without limitation, any cash principal or interest payment made under the Subordinated Promissory Note any cash interest payment made to the Swiss Parent under the TCP Intercompany Loan, but not including any cash principal payments made to the Swiss Parent under the TCP Intercompany Loan) plus (e) any payments made to Holdings under the intercompany loan made by Holdings to TCP, to the extent permitted hereunder; provided, that for the avoidance of doubt, “Senior Debt Payments” shall not include any payments relating to the GEO Foundation Litigation to the extent such payments do not exceed $3,175,075 in the aggregate solely for the periods ending September 30, 2014 and December 31, 2014.
    
2.02    Amendment to Section 6.9. Section 6.9 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

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6.9.    Federal Securities Law. Promptly notify Agent in writing if Holdings, any Loan Party or any of their respective Subsidiaries (i) is required to file periodic reports under the Exchange Act or any similar Applicable Law in any applicable jurisdiction, (ii) registers any securities under the Exchange Act or any similar Applicable Law in any applicable jurisdiction or (iii) files a registration statement under the Securities Act or any similar Applicable Law in any applicable jurisdiction.

2.03    Amendment to Section 7.6.    Section 7.6 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
7.6.     Capital Expenditures. Contract for, purchase or make any expenditure or commitments for Capital Expenditures in any fiscal year in an aggregate amount in excess of $5,000,000 during each fiscal year, commencing with the fiscal year ending December 31, 2014. 

2.04    Amendment to Section 7.8.  Section 7.8 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
7.8    Indebtedness. Create, incur, assume or suffer to exist any Indebtedness (exclusive of trade debt) except in respect of (i) Indebtedness to Lenders; (ii) Indebtedness incurred for Capital Expenditures permitted under Section 7.6 hereof; (iii) Indebtedness under the CMP Subordinated Payable Documentation; (iv) Indebtedness under the Subordinated Promissory Note, (v) Indebtedness under the intercompany loan made by Holdings to TCP and (vi) Indebtedness under the TCP Intercompany Loan.

2.05    Amendment to Section 7.10.      Section 7.10 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
7.10    Transactions with Affiliates.  Directly or indirectly, purchase, acquire or lease any property from, or sell, transfer or lease any property to, or otherwise enter into any transaction or deal with, any Affiliate, except (i) (x) the intercompany loan by Holdings to TCP, (y) the TCP Intercompany Loan by the Swiss Parent to TCP or (z) any other transaction disclosed to the Agent, which, in each case, is in the Ordinary Course of Business, on an arm’s-length basis on terms and conditions no less favorable than terms and conditions which would have been obtainable from a Person other than an Affiliate or (ii) transactions entered into in connection with the Restructuring.
2.06    Amendment to Section 7.23. Section 7.23 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
7.23    GEO Foundation Litigation Payments. At any time, directly or indirectly, pay, prepay, repurchase, redeem, retire or otherwise acquire (“Payment”) any Indebtedness under the Subordinated Promissory Note, except to the extent permitted thereunder and subject to the Subordination Agreement, and so long as, in the case of each Payment (a) no Event of Default or any other default or event of default under any Senior Facility (as defined in the Subordination Agreement) has occurred and is continuing or would occur after giving 

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pro forma effect to the making of such payment(s), (b) TCP was in compliance with the financial covenants set forth in Section 6.5 of this Agreement or each other Senior Facility (as defined in the Subordination Agreement) for the most recently ended fiscal quarter and calendar month, as applicable, after giving pro forma effect to the making of such payment(s) as if such payment were made on the last day of such prior fiscal quarter and calendar month, as applicable; provided, however, the requirements of this clause (b) shall not apply if after giving effect to any Payment the daily average Total Availability for the thirty-day period preceding the date of such Payment is at least $20,000,000 and the Undrawn Availability is at least $5,000,000, and (c) TCP has delivered a pro forma Borrowing Base Certificate showing at least $3,500,000 of average daily Undrawn Availability for the sixty-day period preceding the applicable date of Payment, calculated as if such distribution had been made no later than the beginning of such sixty-day period, in form and substance reasonably satisfactory to Agent.

2.07    Amendment to Section 7.25.      The following is added as new Section 7.25 of the Credit Agreement:
7.25    Payments of TCP Intercompany Loan.  At any time, directly or indirectly, pay or prepay any amount (scheduled or otherwise) owed to the Swiss Parent under the TCP Intercompany Loan, or repurchase, redeem, retire or otherwise acquire such loan or any portion thereof, so long as (i) no Event of Default has occurred and is continuing on the date of such payment, or would exist after giving effect to such payment and (ii) after giving effect to any payment, TCP shall have (a) an Undrawn Availability of at least $5,000,000 and (b) an average daily Total Availability for the thirty-day period preceding the date of such payment of at least $20,000,000. 
2.08    Amendment to Section 10.22.  The following is added as a new Section 10.22 of the Credit Agreement:
10.21  TCP Intercompany Loan Cross Default.  A payment default or any other event of default by TCP under the TCP Intercompany Loan.

ARTICLE III 
CONDITIONS PRECEDENT; POST-CLOSING COVENANT
3.01    Conditions to Effectiveness.  The effectiveness of this Amendment is subject to the satisfaction of the following conditions precedent (the first date upon which all such conditions have been satisfied being herein called the “Effective Date”):
(a)    Agent shall have received the following, each in form and substance satisfactory to Agent and its legal counsel:
(i)    this Amendment duly executed by the Loan Parties and Agent;
(ii)    that certain TCP Intercompany Loan Note, duly executed by Borrowers in the aggregate amount of $20,000,000 (the “TCP Intercompany Loan 

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Note”) and which, following an Event of Default under Sections 10.1 or 10.7 of the Credit Agreement, shall be either endorsed in blank or together with an undated instrument of transfer executed in blank by TCP; and
(iii)    such other documents as may be reasonably requested by Agent.
(b)    No Default or Event of Default shall have occurred and be continuing and no Default or Event of Default, after giving effect to the Amendment, will result from the execution, delivery or performance of this Amendment.
(c)    Since December 31, 2013, there shall not have occurred any event, condition or state of facts which could reasonably be expected to have a Material Adverse Effect other than the GEO Foundation Litigation. 
(d)    Borrowers shall have paid all accrued and unpaid fees and expenses of the Lenders and Agent as required by Section 15.9 of the Credit Agreement (including, without limitation, the reasonable fees and expenses of outside counsel).
(e)    All corporate and other proceedings taken in connection with the transactions contemplated by this Amendment and all documents, instruments and other legal matters incident thereto shall be reasonably satisfactory in form and substance to the Agent and its legal counsel.
ARTICLE IV
RATIFICATIONS, REPRESENTATIONS AND WARRANTIES
4.01    Ratifications.  The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth in the Credit Agreement and the Other Documents, and, except as expressly modified and superseded by this Amendment, the terms and provisions of the Credit Agreement and the Other Documents are ratified and confirmed and shall continue in full force and effect.  Each Loan Party, Agent and the Lenders agree that the Credit Agreement and the Other Documents, as amended hereby, shall continue to be legal, valid, binding and enforceable in accordance with their respective terms except as such enforceability may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditor’s rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law). 
4.02    Representations and Warranties.  Each Loan Party hereby represents and warrants to the Lenders and Agent that, after giving effect to the waiver of the Specified Events of Default and the amendments set forth in this Amendment, (a) the execution, delivery and performance of this Amendment and any and all Other Documents executed and/or delivered in connection herewith have been authorized by all requisite corporate or limited liability company action on the part of such Loan Party and will not violate the certificate of incorporation, bylaws or applicable organization or governing documents of such Loan Party; (b) the signatories executing this Amendment, the TCP Intercompany Loan Note and any certificate or other document or instrument to be delivered pursuant thereto by or on behalf of such Loan Party are authorized to execute this 

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Amendment, the TCP Intercompany Loan Note, and each other document executed in connection therewith; (c) the representations and warranties contained herein shall be true and correct in all material respects as of the date hereof and, after giving effect to this Amendment, the representations and warranties contained in the Credit Agreement and the Other Documents shall be true and correct in all material respects (without duplication of any materiality qualifier contained therein) on and as of the date hereof as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date; (d) after giving effect to this Amendment, no Default or Event of Default under the Credit Agreement has occurred and is continuing; and (e) no Loan Party has amended its certificate of incorporation, bylaws or applicable organization or governing documents other than such amendments which have been delivered to the Lenders and Agent.
4.03    Nonwaiver.  Subject to Section 2.01 of this Amendment, the execution, delivery, performance and effectiveness of this Amendment shall not, operate nor be deemed to be nor construed as a waiver (i) of any right, power or remedy of the Agent or any of the Lenders under the Credit Agreement, nor (ii) of any term, provision, representation, warranty or covenant contained in the Credit Agreement or any other documentation executed in connection therewith. Further, none of the provisions of this Amendment shall constitute, be deemed to be or construed as, a waiver of any Event of Default under the Credit Agreement.
4.04    Reference to and Effect on the Credit Agreement.  Upon the effectiveness of this Amendment, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof’, “herein”, or words of like import shall mean and be a reference to the Credit Agreement, as amended hereby, and each reference to the Credit Agreement in any other document, instrument or agreement executed and/or delivered in connection with the Credit Agreement shall mean and be a reference to the Credit Agreement, as amended hereby
4.05    Claims and Defenses.    As of the date of this Amendment, no Loan Party has any defenses, claims, counterclaims or setoffs with respect to the Credit Agreement or its Obligations thereunder or with respect to any actions of the Agent or any Lender or any of its officers, directors, shareholders, employees, agents or attorneys, and each Loan Party irrevocably and absolutely waives any such defenses, claims, counterclaims and setoffs with respect to causes of action existing as of the date hereof and releases the Agent and each of the Lenders and each of their respective officers, directors, shareholders, employees, agents and attorneys from the same.

ARTICLE V 
MISCELLANEOUS PROVISIONS
5.01    Survival of Representations and Warranties.  All representations and warranties made in the Credit Agreement and the Other Documents as amended by this Amendment shall survive the execution and delivery of this Amendment and the Other Documents and no investigation by the Lenders or Agent shall affect the representations and warranties or the right of the Lenders or Agent to rely upon them.

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5.02    Reference to Credit Agreement.  Each of the Credit Agreement and the Other Documents, and any and all other agreements, documents or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Credit Agreement, as amended hereby, are hereby amended so that any reference in the Credit Agreement and such Other Documents to the Credit Agreement shall mean a reference to the Credit Agreement as amended hereby.
5.03    Successors and Assigns.  This Amendment shall constitute an Other Document and is binding upon and shall inure to the benefit of the Lenders, Agent and each Loan Party and their respective successors and permitted assigns, except that the Loan Parties may not assign or transfer any of their rights or obligations permitted hereunder without the prior written consent of Agent and each Lender.
5.04    Governing Law.  THIS AMENDMENT SHALL BE INTERPRETED AND THE RIGHTS AND LIABILITIES OF THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICT LAW WHICH WOULD APPLY THE LAWS OF ANY OTHER JURISDICTION.
5.05    Severability.  Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.
5.06    Counterparts. This Amendment may be executed in any number of and by different parties hereto on separate counterparts, all of which when so executed shall be deemed to be an original, but all such counterparts shall constitute one and the same agreement.  Delivery of an executed counterpart of this Amendment by facsimile transmission shall be equally effective as delivery of a manually executed counterpart of this Amendment.
5.07    Headings.  The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.
5.08    Further Assurances.  The Loan Parties shall execute and deliver to Lenders and Agent from time to time such supplemental agreements, documents, statements, assignments, transfers, or such other instruments as the Required Lenders and Agent may reasonably request, in order that the full intent of the Credit Agreement and this Amendment may be carried into effect.
5.09    Final Agreement.  THE CREDIT AGREEMENT AND THE OTHER DOCUMENTS, EACH AS AMENDED HEREBY, REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES HERETO WITH RESPECT TO THE SUBJECT MATTER HEREOF ON THE DATE THIS AMENDMENT IS EXECUTED.  THE CREDIT AGREEMENT AND THE OTHER DOCUMENTS, AS AMENDED HEREBY, MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.  NO MODIFICATION, RESCISSION, WAIVER, RELEASE OR AMENDMENT OF ANY PROVISION OF THIS 

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AMENDMENT SHALL BE MADE, EXCEPT IN ACCORDANCE WITH SECTION 15.2 OF THE CREDIT AGREEMENT.
 [Remainder of page intentionally left blank]

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IN WITNESS WHEREOF, each of the parties hereto has executed this Amendment as of the date first above written.

	
			
	TECHNICAL CONSUMER PRODUCTS, INC. 

	 
	 
	 

	By:
	/s/ Brian Catlett

	Name:
	Brian Catlett

	Title:
	CFO

	
			
	BOWMAN LAMPS, LLC

	 
	 
	 

	By:
	/s/ Brian Catlett

	Name:
	Brian Catlett

	Title:
	CFO

	
			
	TECHNICAL CONSUMER PRODUCTS CANADA, INC.

	 
	 
	 

	By:
	/s/ Brian Catlett

	Name:
	Brian Catlett

	Title:
	CFO

[Signature Page to Amendment No. 4 to Revolving Credit and Security Agreement]

 

PNC BANK, NATIONAL ASSOCIATION,  
as Agent and Lender

 
By:     /s/ Dean Newman     
        Name:  Dean W. Newman 
        Title: Vice President

 
Commitment Percentage:  100%

[Signature Page to Amendment No. 4 to Revolving Credit and Security Agreement]

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