Document:

Exhibit 10.3

Recording Requested By,

And After Recording, Return To:

WELLS FARGO BANK,

 NATIONAL ASSOCIATION

1740 Broadway

Denver, Colorado 80203

Attn: Loan Documentation

AGREEMENT AND ACKNOWLEDGMENT OF SECURITY INTEREST

THIS AGREEMENT AND ACKNOWLEDGMENT OF SECURITY INTEREST (this "Agreement") is
entered into as of December 29, 2009, by and among WELLS FARGO BANK, NATIONAL
ASSOCIATION ("Bank"), ENGlobal Corporation ("Debtor") and CLAY REAL ESTATE
DEVELOPMENT, L.P. ("Landlord").

WHEREAS, Bank has extended, or has agreed to extend, credit to Debtor on the
condition, among others, that such credit be secured by a security interest in
certain assets of Debtor (the "Collateral") described in the Security Agreement
attached hereto as Exhibit A and incorporated herein by this reference (the
"Security Agreement"), and all or a portion of the Collateral is now or may
hereafter be located on that certain real property owned by Landlord in
Jefferson County, Texas, as more particularly described on Exhibit B attached
hereto and incorporated herein by this reference (the "Property"); and

WHEREAS, in extending or continuing to extend such credit to Debtor, Bank is
relying on the acknowledgments, representations and agreements relating to the
Collateral set forth herein.

NOW, THEREFORE, Landlord, Debtor and Bank hereby acknowledge, represent and
agree as follows:

1. Landlord's Acknowledgment. Landlord acknowledges that the security interest
of Bank in the Collateral is senior and superior to any claim or right in all or
any portion thereof which Landlord now has or may at any time hereafter acquire.
Landlord confirms that Landlord has not received notice from any person or
entity other than Bank of any claim of right, title or interest in or to any of
the Collateral.

2. Notice and License. Landlord agrees to deliver to Bank, at the same time as
delivery to Debtor, a copy of any notice given by Landlord to Debtor regarding
any breach of, or limitation or termination of, any lease or other agreement
between Debtor and Landlord relating to Debtor's use and possession of the
Property. Subject to the terms and conditions of this Agreement, Landlord and,
where applicable, Debtor agree that notwithstanding any failure by Debtor to
perform under, or the termination of, any lease or other agreement between
Debtor and Landlord relating to Debtor's use and possession of the Property: (a)
Landlord will not dispose of the Collateral nor assert any right or interest
therein unless it has first notified Bank in writing and has given Bank a
reasonable opportunity to exercise Bank's rights in and to the Collateral; and
(b) Bank is hereby granted the right and license to enter upon the Property and
to possess and use the Property to take possession of the Collateral and to
exercise Bank's rights, powers and remedies with respect to the Collateral,
including without limitation completing any work in process, removing any or all
of the Collateral from the Property, and sorting, assembling, selling (including
by auction sale held on the Property) and otherwise disposing of the Collateral
in accordance with the terms and conditions of the Security Agreement, this
Agreement and applicable law.

3. Conditions. The rights and licenses granted to Bank herein are conditioned
upon Bank's agreement to, and Bank hereby agrees to: (a) pay rent to Landlord at
the times and at the daily rate paid

                                        1
<PAGE>

by Debtor for the period commencing on the day Bank enters into possession of
the Property and ending on the day Bank relinquishes possession thereof; and (b)
reimburse Landlord for any damage to the Property, other than diminution in
value thereof, actually caused by Bank's activities on the Property during its
possession thereof.

4. Indemnity. Debtor agrees to indemnify and hold Landlord and Bank, and their
respective partners, officers, directors, successors and assigns, harmless from
and against any and all claims, actions, damages, costs, expenses (including
reasonable attorneys' fees, to include Bank's outside counsel fees and all
allocated costs of Bank's in-house counsel to the extent permissible) and/or
liability arising from or in any manner relating to Landlord's compliance with
this Agreement and/or Bank's exercise of any of its rights hereunder. Debtor
hereby irrevocably authorizes Landlord to comply with any instructions or
directions which Bank may give to Landlord pursuant hereto and/or in connection
with Bank's exercise of its rights, powers and remedies with respect to the
Collateral.

5. No Waiver; Amendments. No delay, failure or discontinuance of Bank in
exercising any right, power or remedy hereunder or under the Security Agreement
shall affect such right, power or remedy; nor shall any single or partial
exercise of any such right, power or remedy preclude, waive or otherwise affect
the further exercise thereof or the exercise of any other right, power or
remedy. The rights, powers and remedies of Bank hereunder are cumulative and not
exclusive. Any waiver, permit, consent or approval of any kind by Bank of any
breach of or default under this Agreement, or any such waiver of any provisions
or conditions hereof, must be in writing and shall be effective only to the
extent set forth in such writing. This Agreement may be amended or modified only
in writing signed by all parties hereto.

6. Notices. All notices, requests and demands required hereunder must be in
writing, addressed to each party at the address specified below or to such other
address as any party may designate by written notice to each other party, and
shall be deemed to have been given or made as follows: (a) if personally
delivered, upon delivery; (b) if sent by mail, upon the earlier of the date of
receipt or three (3) days after deposit in the U.S. mail, first class and
postage prepaid; and (c) if sent by telecopy, upon receipt.

7. Governing Law; Successors, Assigns. This Agreement shall be governed by and
construed in accordance with the laws of the State of Texas, and shall be
binding upon and inure to the benefit of the heirs, executors, administrators,
legal representatives, successors and assigns of the parties.

                                        2
<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
day and year first written above.

BANK: LANDLORD:

CLAY REAL ESTATE DEVELOPMENT, L.P.

By:

Name:

Title:

Address:

WELLS FARGO BANK,
NATIONAL ASSOCIATION

By: /s/ David Jones

Name: David Jones

Title: Relationship Manager

Address: 21 Waterway Avenue, Suite 600
         The Woodlands, TX 77380-2629

DEBTOR:

ENGlobal Corporation

By: /s/ Robert Raiford

Name: R. W. Raiford

Title: Chief Financial Officer

Address: 654 N Sam Houston Parkway, Suite 400
         Houston, TX 77060-5914

OBTAIN NOTARY ACKNOWLEDGMENTS

                                        3
<PAGE>

EXHIBIT B

TO

AGREEMENT AND ACKNOWLEDGMENT OF SECURITY INTEREST

Legal Description of Property:

                                        4Exhibit 10.4

                                                               December 31, 2009

COMERICA BANK
One Shell Plaza
910 Louisiana Street, 4th Floor
Houston, TX 77002

ATTENTION:    James R. McNutt
              SVP Middle Market Financial Services

REFERENCE:    Termination Request

Dear Mr. McNutt:

ENGlobal requests termination of the certain Credit Agreement, dated August 8,
2007 as of December 30, 2009. All loan balances have been paid and interest
deducted from our account.

ENGlobal also wishes to thank you and the Comerica team for their service and
support during our relationship.

ENGLOBAL CORPORATION

By: /s/ R. W. Raiford
    ---------------------
    R. W. Raiford, CFOExhibit
10.1

 

AMENDMENT NO. 2

 

THIS
AMENDMENT NO. 2, dated as of January 8, 2010 (this “Amendment”), to
that certain Credit Agreement referenced below is by and among MAC-GRAY
CORPORATION, a Delaware corporation (the “Parent Borrower”), MAC-GRAY
SERVICES, INC., a Delaware corporation (“MGS”), and INTIRION CORPORATION,
a Delaware corporation (“Intirion”; together with the Parent Borrower
and MGS, each a “Borrower” and collectively the “Borrowers”), the
Lenders party hereto and BANK OF AMERICA, N.A., as Administrative Agent and
Collateral Agent.  Capitalized terms used
but not otherwise defined herein shall have the meanings provided in the Credit
Agreement.

 

W I T N E S S E T H

 

WHEREAS,
a $130 million senior secured revolving credit facility has been established in
favor of the Borrowers pursuant to the terms of that certain Senior Credit
Agreement, dated as of April 1, 2008 (as amended, restated, supplemented
and otherwise modified from time to time, the “Credit Agreement”), among
the Borrowers, the Lenders and Bank of America, N.A., as Administrative Agent
and Collateral Agent;

 

WHEREAS,
the Borrowers have requested certain modifications to the Credit Agreement; and

 

WHEREAS,
the Lenders have agreed to the requested modifications on the terms and
conditions set forth herein.

 

NOW,
THEREFORE, in consideration of these premises and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties agree as follows:

 

1.             Amendment to
the Credit Agreement.  The defined
term “Consolidated EBITDA” in Section 1.01 of the Credit Agreement is
amended to read as follows:

 

“Consolidated EBITDA” means, for any period
for the Consolidated Group, the sum of (a) Consolidated Net Income plus (b) to
the extent deducted in determining such Consolidated Net Income, without
duplication, the sum of (i) Consolidated Interest Expense, (ii) consolidated
income tax expense, (iii) depreciation and amortization, (iv) any
extraordinary non-cash charges reasonably acceptable to the Administrative
Agent and the Required Lenders, (v) non-cash impairment charges for
discontinued or divested operations, (vi) non-cash compensation expenses
(but excluding, for purposes hereof, any such non-cash charges as for which
there will be a subsequent cash payment), (vii) non-cash expenses
resulting from the grant of stock options or other equity-related compensation
to any director, officer, consultant or employee, in each case on a
consolidated basis determined in accordance with GAAP; provided that (A) for
acquisitions made within the period of four consecutive fiscal quarters ending December 31,
2007, there shall be included in “Consolidated EBITDA” the amounts set forth on
Schedule 1.01 as adjustments to Consolidated EBITDA and (B) for
acquisitions made after the Closing Date adjustments may be made to
Consolidated EBITDA for expected cost-savings, synergies and one-time costs and
expenses relating to the acquisitions (including employee retention expenses
and severance expenses) reasonably acceptable to the Administrative Agent and
the Required Lenders and (viii) non-cash expenses (and excluding non-cash
income) in connection with any Swap Agreement for which the applicable member
of the Consolidated Group does not receive hedge accounting treatment.  Except as otherwise expressly provided, the
applicable period shall be the period of four consecutive fiscal quarters
ending as of the date of determination.

 

 

2.             Conditions
Precedent.  This
Amendment shall be effective upon the Administrative Agent’s receipt of duly
executed counterparts of this Amendment from the Borrowers, the Administrative
Agent and the Required Lenders.

 

3.             Miscellaneous.

 

3.1           Full Force and
Effect.  Except as modified hereby, all
of the terms and provisions of the Credit Agreement (including Schedules and
Exhibits) remain in full force and effect.

 

3.2           Affirmations and
Representations and Warranties of the Borrowers.  Each of the Borrowers hereby affirms,
represents and warrants (a) the representations and warranties set forth
in Article V of the Credit Agreement are true and correct as of the date
hereof (except those which expressly relate to an earlier period) and (b) no
Default or Event of Default exists as of the date hereof.

 

3.3           Affirmation of Liens.  Each of the Borrowers hereby affirms the
liens and security interests created and granted in the Loan Documents and
agrees that this Amendment is not intended to adversely affect or impair such
liens and security interests in any manner.

 

3.4           Acknowledgment of Obligations.  Each of the Borrowers (a) acknowledges
and consents to all of the terms and conditions of this Amendment, (b) affirms
such Borrower’s obligations under the Loan Documents and (c) agrees that
this Amendment does not operate to reduce or discharge such Borrower’s
obligations under the Loan Documents.

 

3.5           Fees and Expenses.  The Borrowers agree to pay all reasonable
fees and expenses of the Administrative Agent in connection with the
preparation, execution and delivery of this Amendment, including without
limitation the reasonable fees and expenses of Moore & Van Allen,
PLLC, counsel to the Administrative Agent.

 

3.6           Counterparts; Delivery.  This Amendment may be executed in any number
of counterparts, each of which when so executed and delivered shall be deemed
an original and it shall not be necessary in making proof of this Amendment to
produce or account for more than one such counterpart.  Delivery by any party hereto of an executed
counterpart of this Amendment by facsimile shall be effective as such party’s
original executed counterpart.

 

3.7           Amendment is a Loan Document.  Each of the parties hereto hereby agrees that
this Amendment is a Loan Document.

 

3.8           Governing Law.  This Amendment shall be governed by, and
construed in accordance with, the law of the State of New York.

 

[Remainder of Page Intentionally Left
Blank]

 

2

 

IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart
of this Amendment to be duly executed and delivered as of the date first above
written.

 

	
  BORROWERS:

  	
  MAC-GRAY CORPORATION,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael J. Shea

  
	
   

  	
  Name:

  	
  Michael
  J. Shea

  
	
   

  	
  Title:
  

  	
  EVP,
  CFO & Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  MAC-GRAY SERVICES, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael J. Shea

  
	
   

  	
  Name:

  	
  Michael
  J. Shea

  
	
   

  	
  Title:

  	
  EVP,
  CFO & Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
  INTIRION CORPORATION,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael J. Shea

  
	
   

  	
  Name:

  	
  Michael
  J. Shea

  
	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
   

  	
   

  
	
  ADMINISTRATIVE AGENT:

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as
  Administrative Agent and Collateral Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Charlene Wright-Jones

  
	
   

  	
  Name:

  	
  Charlene
  Wright-Jones

  
	
   

  	
  Title:

  	
  Assistant
  Vice President

  
	
   

  	
   

  	
   

  
	
  LENDERS:

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as
  L/C Issuer, Swingline Lender and as a Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Christopher S. Allen

  
	
   

  	
  Name:

  	
  Christopher
  S. Allen

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  FIFTH THIRD BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Valerie Schanzer

  
	
   

  	
  Name:

  	
  Valerie
  Schanzer

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael W. Sweeney

  
	
   

  	
  Name:

  	
  Michael
  W. Sweeney

  
	
   

  	
  Title:

  	
  Vice
  President

  

 

MAC-GRAY CORPORATION 

AMENDMENT NO. 2

 

 

	
   

  	
  KEYBANK
  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jeff Kalinowski

  
	
   

  	
  Name:

  	
  Jeff
  Kalinowski

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  TD BANK, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robyn Zeller

  
	
   

  	
  Name:

  	
  Robyn
  Zeller

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  EASTERN BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Robert J. Moodie

  
	
   

  	
  Name:

  	
  Robert
  J. Moodie

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  
	
   

  	
  SOVEREIGN BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Penny Garver

  
	
   

  	
  Name:

  	
  Penny
  Garver

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  
	
   

  	
  ALLIED IRISH BANKS, p.l.c.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael Reilly

  
	
   

  	
  Name:

  	
  Michael
  Reilly

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Denise Magyer

  
	
   

  	
  Name:

  	
  Denise
  Magyer

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
  AIB DEBT MANAGEMENT LIMITED

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael Reilly

  
	
   

  	
  Name:

  	
  Michael
  Reilly

  
	
   

  	
  Title:

  	
  Vice
  President, Investment Advisor to AIB Debt

  
	
   

  	
   

  	
  Management
  Limited

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Denise Magyer

  
	
   

  	
  Name:

  	
  Denise
  Magyer

  
	
   

  	
  Title:

  	
  Vice
  President, Investment Advisor to AIB Debt

  
	
   

  	
   

  	
  Management
  Limited

  
	
   

  	
   

  	
   

  
	
   

  	
  RBS CITIZENS, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Christopher J. Wickles

  
	
   

  	
  Name:

  	
  Christopher
  J. Wickles

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

 

	
   

  	
  SUNTRUST BANK.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael Silverman

  
	
   

  	
  Name:

  	
  Michael
  Silverman

  
	
   

  	
  Title:

  	
  Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF THE WEST

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Sidney Jordan

  
	
   

  	
  Name:

  	
  Sidney
  Jordan

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  BROWN BROTHERS HARRIMAN & CO.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Barbara R. Flight

  
	
   

  	
  Name:

  	
  Babara
  R. Flight

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  SALEM FIVE CENTS SAVINGS BANK

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joseph V. Leary

  
	
   

  	
  Name:

  	
  Joseph
  V. Leary

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  HSBC BANK USA, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Manuel Burgueño

  
	
   

  	
  Name:

  	
  Manuel
  Burgueño

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  FIRSTRUST BANK

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ellen Frank

  
	
   

  	
  Name:

  	
  Ellen
  Frank

  
	
   

  	
  Title:

  	
  Vice
  President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00167-of-00352.parquet"}]]