Document:

Amendment Agreement

 Exhibit 10.40 
 SECOND AMENDMENT AGREEMENT TO 
 CREDIT AGREEMENT 
 This AMENDMENT AGREEMENT is dated as of November 16, 2007 between SOLO CUP CANADA INC. (the “Borrower”) and GE
CANADA FINANCE HOLDING COMPANY (the “Lender” or “Agent”). 
 WHEREAS: 
  

	(A)	Agent and Borrower (under Borrower’s prior name of Lily Cups Inc.) entered into a credit agreement dated as of September 24, 2004 as amended by the first amendment to
credit agreement dated as of October 19, 2006 (as amended, the “Credit Agreement”); and 

  

	(B)	Agent and Borrower have agreed to amend certain terms of the Credit Agreement effective the date hereof; 

 NOW THEREFORE THIS AGREEMENT WITNESSES THAT in consideration of the mutual covenants and agreements contained in this Amendment Agreement and
other good and valuable consideration now paid by each party to the other (the receipt and sufficiency of which are hereby acknowledged), the parties agree as follows: 
 ARTICLE I 
 INTERPRETATION 
 Section 1.1 Definitions. Terms used, but not defined, in this Amendment Agreement shall have the respective meanings assigned to them in the Credit Agreement. 
 ARTICLE II 
 AMENDMENTS 
 Section 2.1 Credit Agreement Amendments. As of and with effect from the date hereof the Credit Agreement shall be amended as follows (in this
Section 2.1 only, unless the context otherwise specifies, a reference to a Section or a subsection is a reference to a Section or a subsection of the Credit Agreement): 
  

	 	(1)	In Annex A, the definition of “Letter of Credit Obligations” is deleted and replaced by the following: 

 Letter of Credit Obligations shall mean all outstanding obligations incurred by Lender at the request of Borrower, whether direct or
indirect, contingent or otherwise, due or not due, in connection with the issuance of a reimbursement agreement or 

 
guarantee by Lender or purchase of a participation as set forth in Annex B with respect to any Letter of Credit. The amount of such Letter of Credit
Obligations shall equal the maximum amount or Equivalent Amount, as appropriate, which may be payable by Lender thereupon or pursuant thereto. 
  

	 	(2)	In Annex B, paragraphs (1) and (5) are deleted and replaced by the following: 

 (1) Issuance. Subject to the terms and conditions of the Agreement, Lender agrees to incur, from time to time prior to the Commitment Termination Date, upon the request of Borrower and for
Borrower’s account, Letter of Credit Obligations by causing Letters of Credit to be issued (by a bank or other legally authorized Person selected by or acceptable to Lender in its sole discretion (each, an “L/C Issuer”)) for
Borrower’s account in Dollars or US Dollars and guaranteed by Lender; provided, however, that (a) the aggregate amount of all such Letter of Credit Obligations shall not at any time exceed the least of (i) Eleven Million
Dollars ($11,000,000) minus the amount of all outstanding Permitted Investments (the “L/C Sublimit”), and (ii) the Maximum Amount less the aggregate outstanding principal balance of the Revolving Credit Advances and
(iii) the Borrowing Base less the aggregate outstanding principal balance of the Revolving Credit Advances; (b) the maximum amount of Letters of Credit which may be issued in US Dollars is the Equivalent Amount of Ten Million
Dollars ($10,000,000); (c) one million Dollars ($1, 000,000) of the L/C Sublimit may only be used for Letters of Credit issued in Dollars; and (d) ten million Dollars ($10,000,000) of the L/C Sublimit may only be used for Letters of Credit
(each an “Affiliate Letter of Credit”) to be issued for Borrower’s account on behalf of Solo Cup Company to beneficiaries identified by Solo Cup Company. No Letter of Credit shall have an expiry date which is more than one year
following the date of issuance thereof, and Lender shall not be under any obligation to incur Letter of Credit Obligations in respect of, or purchase risk participations in, any Letter of Credit having an expiry date which is later than the
Commitment Termination Date. 
 (5) Request for Incurrence of Letter of Credit Obligations. Borrower shall give Lender at least
two (2) Business Days prior written notice requesting the incurrence of any Letter of Credit Obligation, specifying the date such Letter of Credit Obligation is to be incurred, identifying the beneficiary to which such Letter of Credit
Obligation relates, describing the nature of the transactions proposed to be supported thereby and indicating whether such Letter of Credit Obligation is in respect of an Affiliate Letter of Credit. The notice shall be accompanied by the form of the
Letter of Credit (which shall be acceptable to the L/C Issuer) to be guaranteed and, to the extent not previously delivered to Lender, copies of all 

  

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agreements between Borrower and the L/C Issuer pertaining to the issuance of Letters of Credit. Notwithstanding anything contained herein to the contrary,
Letter of Credit applications by Borrower and approvals by Lender and the L/C Issuer may be made and transmitted pursuant to electronic codes and security measures mutually agreed upon and established by and among Borrower, Lender and the L/C
Issuer. 
  

	 	(3)	Section 6.2 is deleted in its entirety and replaced by the following: 

 Investments; Loans and Advances. Except as otherwise expressly permitted by this Section 6, Borrower shall not make or permit to exist any investment in, or make, accrue or permit to exist loans or
advances of money to, any Person, through the direct or indirect lending of money, holding of securities or otherwise, except that (1) Borrower may hold investments comprised of notes payable, or stock or other securities issued by Account
Debtors to Borrower pursuant to negotiated agreements with respect to settlement of such Account Debtor’s Accounts in the ordinary course of business, so long as the aggregate amount of such Accounts so settled by Borrower does not exceed
$250,000; (2) so long as no Default or Event of Default shall have occurred and be continuing, and there is no outstanding Revolving Loan balance, Borrower may make investments, subject to Control Letters in favour of Agent or otherwise subject
to a perfected security interest in favour of Agent, in (A) marketable direct obligations issued or unconditionally guaranteed by Canada, any agency thereof, the United States of America or any agency thereof maturing within one year from the
date of acquisition thereof, (B) commercial paper maturing no more than one year from the date of creation thereof and currently having the highest rating obtainable from either Standard & Poor’s Ratings Group or Moody’s
Investors Service, Inc., (C) certificates of deposit, maturing no more than one year from the date of creation thereof, issued by commercial banks incorporated under the laws of Canada or the United States of America, each having combined
capital, surplus and undivided profits of not less than US$300,000,000 and having a senior unsecured rating of “A” or better by a nationally recognized rating agency (an “A Rated Bank”), (D) time deposits, maturing no
more than 30 days from the date of creation thereof with A Rated Banks, and (E) mutual funds that invest solely in one or more of the investments described in clauses (A) through (D) above, and (F) other investments not exceeding
$100,000 in the aggregate at any time outstanding, and (3) so long as no Default or Event of Default shall have occurred and be continuing, Borrower may make investments (“Permitted Investments”) in operating businesses which
are substantially similar to the business of Borrower, including Affiliates of Borrower, in an aggregate amount (or Equivalent Amount, as appropriate) of up to $10,000,000 less the amount (or Equivalent Amount, as appropriate) of all Letter of
Credit Obligations outstanding in respect of Affiliate Letters of Credit; provided that the following conditions have been met: (A) the average Borrowing Availability during the 90-day period 

  

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prior to the date of such investment is not less than $6,000,000 and the Borrowing Availability is not less than $5,000,000 for more than five
(5) consecutive Business Days at any time during such 90-day period (except that the Borrowing Availability must be at least $6,000,000 for the last 10 days of such 90-day period), in all cases calculated as if such investment had already been
made 91 days prior to the date of such investment, (B) Agent shall be satisfied in its sole discretion (or, pursuant to Section 3.1(h) of this Amendment Agreement, be deemed to be satisfied) that the restatement of Solo Cup Company's
financial statements for fiscal 2003, 2004 and 2005 as well as the first quarter of 2006 indicates no material adverse cash impact on Borrower’s operations or shall have waived the aforesaid condition, (C) Agent has received 15 days prior
written notice of Borrower’s intention to make the investment together with sufficient information to enable Agent to evaluate the investment, (D) any securities received by Borrower as consideration for such investment are delivered into
the possession of Agent together with any other documents requested by Agent to perfect its security interest in such securities, and (E) Agent has provided its prior written consent, such consent not to be unreasonably withheld, to the making
of such investment. 
 ARTICLE III 
 MISCELLANEOUS 
 Section 3.1 Continuing Effect. The parties hereby confirm the terms of the Credit Agreement and each of the Loan
Documents which continue in full force and effect except as amended by the terms of this Amendment Agreement. The Credit Agreement and this Amendment Agreement shall hereafter be read and construed as one instrument. 
 Section 3.2 Governing Law. The provisions of section 11.9 of the Credit Agreement shall apply to this Amendment Agreement as if the same were set out in full
herein. 
 Section 3.3 Variation. The provisions of this Amendment Agreement shall not be varied otherwise than by an instrument in writing
executed by or on behalf of all the parties. 
 Section 3.4 Counterparts. This Amendment Agreement may be executed in any number of counterparts
and by any party hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which, when taken together, shall constitute one and the same agreement. Counterparts may be executed either in original or
faxed form and the parties adopt any signatures received by a receiving fax machine as original signatures of the parties; provided however, that any party providing its signature in such manner will promptly forward to the other parties an original
of the signed copy of this Amendment Agreement which was so faxed. 
  

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 Section 3.5 Further Assurances. Each party agrees from time to time to do and perform such other and further
acts and execute and deliver any and all such other instruments as may be required by law or reasonably requested by any other party to establish, maintain and protect the rights and remedies of such party and to carry out and effect the intent and
purpose of this Amendment Agreement. 
 Section 3.6 Invalidity of any Provision. If any provision of this Amendment Agreement becomes invalid,
illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired. 
  

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

			
	SOLO CUP CANADA INC.
		
	By:	 	 /s/ Robert M. Korzenski

	Name:	 	Robert M. Korzenski
	Title:	 	President
	
	GE CANADA FINANCE HOLDING COMPANY
		
	By:	 	 /s/ Colin Woodyard

	Name:	 	Colin Woodyard
	Title:	 	Vice President

 SIGNATURE PAGE TO 
 SECOND AMENDMENT AGREEMENT 
 TO CREDIT AGREEMENT 
  

 - 6 -Letter agreement between the Company and BH Cherry LLC

 Exhibit 10.1 
 Distributed Energy Systems Corp. 
 10 Technology Drive 
 Wallingford, CT 06492 
 November 16, 2007 
 BH Cherry LLC and 
 Bernard H.
Cherry 
 1 North Breakers Row 
 Palm Beach, FL 33480 

Gentlemen: 
 Distributed Energy Systems Corp. (the
“Company”) wishes to engage the services of BH Cherry LLC (the “LLC”) and, through it, the services of Bernard H. Cherry (“Executive”) as its Interim Chief Executive Officer and the LLC wishes to provide the services of
Executive on a consulting basis. The purpose of this letter agreement is to set forth the terms of this arrangement. 
 1. As of
October 31, 2007, the LLC has provided, and will continue to provide, the services of Executive as the Interim Chief Executive Officer of the Company. Executive will have the responsibilities and authorities customarily inherent in the position
of chief executive officer and as provided in the Company’s by-laws and will, in his capacity as an officer of the Company, report solely to the Board of Directors of the Company (the “Board of Directors”). In addition, Executive will
be responsible for other duties as may from time to time be reasonably agreed among him, the LLC and the Board of Directors, including at the request of the Board of Directors assisting in the search for a permanent Chief Executive Officer (together
with the services described in the preceding sentence, the “Services”). The LLC and Executive agree that Executive will devote his best efforts, skill, knowledge, attention, and energies to performing the Services and to the advancement of
the Company’s business and interests and to the performance of his duties and responsibilities as Interim Chief Executive Officer of the Company, and they agree to observe all rules and regulations of the Company. The parties contemplate that
Executive will initially devote approximately five days per week to the performance of the Services, although the judgment as to the necessary time commitment shall be in the discretion of Executive and the time commitment may decline over time.
Executive, in his individual capacity, will continue in his role as a director of the Company and as Chairman of the Board, subject to the Company’s by-laws and legal requirements. 
 2. In rendering the Services to the Company, Executive and the LLC shall act as an independent contractor and not as an employee, joint venturer or
partner of the Company for any purpose whatsoever. The manner and means by which the Services are provided shall be under 

 
the sole and exclusive control and discretion of the LLC and Executive, subject to the provisions of this letter agreement, the Company’s by-laws and
legal requirements. The LLC is not authorized to transact any business or assume or create any obligation or responsibility, express or implied, on behalf of, or in the name of, the Company or to bind the Company in any manner. Executive, in his
individual capacity as a corporate officer, shall be authorized to transact business and incur obligations on behalf of the Company only to the extent such authority is inherent in the position of chief executive officer. The LLC retains the right
to contract with other companies or entities for Executive’s or its own consulting and management services, subject to the requirements of this letter agreement. Likewise, the Company retains a reciprocal right to contract with other companies
and/or individuals for consulting and management services without restriction. 
 3. The Company will pay the LLC for the services of
Executive at a rate of $4,000 per day actually devoted by Executive to performing the Services. The LLC shall present monthly invoices to the Company reporting in reasonable detail the work performed by Executive and containing the LLC’s
employer identification number and address, which invoices shall be subject to approval by a member of the Audit Committee of the Board of Directors, which approval shall not be unreasonably withheld. Effective on the date of this letter agreement,
Executive shall no longer be eligible for compensation in his role as a director or as Chairman of the Board of Directors. 
 4. Executive
shall not be eligible to participate in any bonus or benefit programs or privileges that the Company establishes and makes available to its employees from time to time, including, without limitation, social security, unemployment, medical or pension
payments, and Executive waives any claim to entitlement to such participation even if his status is later reclassified retroactively by a governmental agency. 
 5. The Company will reimburse the LLC for reasonable business expenses incurred in connection with the performance of the Service, including but not limited to air fare at coach rates, lodging and meal expenses in
connection with Executive’s commuting between his residences in Florida and New Jersey and Company facilities. The LLC shall submit to the Company itemized monthly statements, in a form satisfactory to the Company, of such expenses incurred in
the previous month, which statements shall be subject to standard Company expense reimbursement policies in effect from time to time and approval by a member of the Audit Committee of the Board of Directors. 
 6. This letter agreement and the consulting arrangement hereunder may be terminated by the Company or the LLC at any time, for any reason, and with or
without notice. In the event of such termination, the LLC shall be entitled to payment for services performed and expenses incurred prior to the effective date of termination, as contemplated by this letter agreement, 
 7. As a condition to this engagement, the LLC and Executive shall execute and comply with the terms of an Assignment of Inventions, Non-Disclosure and
Non-Compete Agreement in the form attached hereto as Exhibit A. 
  

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 8. The LLC and Executive represent that they are not bound by any agreement, employment or consulting
contract, restrictive covenant or other restriction to refrain from competing, directly or indirectly, with the business of a previous employer or other party or that would prevent them from entering into this consulting arrangement with or carrying
out their responsibilities for the Company, or which is in any way inconsistent with the terms of this letter agreement. The LLC and Executive further represent that their engagement by the Company does not and will not breach any agreement to keep
in confidence proprietary information, knowledge or data acquired by them in confidence or in trust prior to their engagement by the Company. 
 9. The LLC is responsible for the Federal, state and local taxes, including all employment taxes, withholding, and social security payments, for Executive and any other employee(s) performing consultant services under this letter agreement,
and for complying with all applicable Federal, state and local laws, ordinances, and regulations that are now or in the future may become applicable to this letter agreement and the services provided hereunder, including but not limited to,
complying with all applicable rules and regulations of the state of Connecticut. The LLC is also responsible for maintaining adequate workers’ compensation insurance coverage for Executive. The LLC agrees to indemnify, defend and hold harmless
the Company, its stockholders, officers, directors, agents and employees from any claims by any federal, state or local government agency, whether on account of withholding of employment taxes or any other claim or cause, arising out of the
LLC’s or Executive’s service hereunder. 
 10. This letter agreement is personal to the LLC and Executive and neither shall have
the right to assign any of its or his rights or delegate any of its or his duties without the express written consent of the Company. 
 11.
All notices required or permitted under this letter agreement shall be in writing and shall be deemed effective upon personal delivery or upon deposit in the United States Post Office, by registered or certified mail, postage prepaid, addressed to
the other party at the address shown above, or at such other address or addresses as either party shall designate to the other in accordance with this section. 
 12. This letter agreement contains the entire understanding between the Company on the one hand and the LLC and Executive on the other hand and supersedes, replaces and takes precedence over any prior understanding or
oral or written agreement between them respecting the subject matter of this letter agreement. There are no representations, agreements, arrangements, nor understandings, oral or written, between the Company on the one hand and the LLC and Executive
on the other hand relating to the subject matter of this letter agreement that are not fully expressed herein. This letter agreement may be amended or modified only by a written instrument executed by the Company, the LLC and Executive. 

13. In the event any provision of this letter agreement shall be held invalid, the same shall not invalidate or otherwise affect in any respect any
other term or terms of this letter agreement, which term or terms shall remain in full force and effect. 
 14. No delay or omission by the
Company, the LLC, or Executive in exercising any right under this letter agreement shall operate as a waiver of that or any other right. A waiver or 

  

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consent given by the Company, the LLC, or Executive on any one occasion shall be effective only in that instance and shall not be construed as a bar or
waiver of any right on any other occasion. 
 15. This letter agreement shall be governed by and construed in accordance with the internal
laws of the State of Connecticut without giving effect to any choice or conflict of law provision or rule (whether of the State of Connecticut or any other jurisdiction) that would cause the application of laws of any jurisdictions other than those
of the State of Connecticut. 
 Please sign the enclosed duplicate of this letter agreement in the space provided below to indicate your
agreement to these terms. 
  

			
	DISTRIBUTED ENERGY SYSTEMS CORP.
		
	By:	 	 /s/ Paul Koeppe

		 	Paul Koeppe,
		 	Chairman of the Compensation Committee of the Board of Directors

  

					
	Accepted:	 	
		
	BH CHERRY LLC	 	
			
	By:	 	 /s/ Bernard H. Cherry
	 	Date: November 16, 2007
		 	Bernard H. Cherry, Managing Member	 	
		
	 /s/ Bernard H. Cherry
	 	Date: November 16, 2007
	Bernard H. Cherry	 	

  

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