Document:

Exhibit 10.2

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (“Agreement”) is effective as of the 26th day of June, 2015 (the “Effective Date”), between Global Power Equipment Group Inc. (the “Company”) and Terence J. Cryan (“Executive”).   In consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                                      Employment.  The Company shall employ Executive, and Executive accepts employment with the Company, upon the terms and subject to the conditions set forth in this Agreement, for the period beginning on the Effective Date and ending on the earlier of (a) the Date of Termination (as defined in Section 4(e) of this Agreement), or (b) June 1, 2017 (the “Term”).  Unless terminated prior to that date, the Term shall be automatically renewed for successive one-year periods on the terms and subject to the conditions of this Agreement (including, without limitation, Sections 8, 9 and 10 hereof), commencing on June 1, 2017, and on each June 1st thereafter, unless either the Company or Executive gives the other party written notice (in accordance with Section 14 hereof), at least 90 calendar days prior to the end of such initial or extended Term, of its or his intention not to renew this Agreement or the employment of Executive.  For purposes of this Agreement, any reference to the “Term” of this Agreement shall include the original term and any extension thereof.

 

2.                                      Position and Duties; Location.

 

(a)                                 Position and Duties.  During the Term, Executive shall be employed by the Company as President and Chief Executive Officer.  Executive shall report solely to the Board of Directors of the Company (the “Board”) and shall have such duties, responsibilities and authorities as are customarily associated with his position (including, but not limited to, the general management of the affairs of the Company) and such additional duties and responsibilities consistent with his positions as may, from time to time, be properly and lawfully assigned to him.

 

(b)                                 Board Service.  During the Term, the Company shall cause the Nominating and Corporate Governance Committee of the Board (the “Nominating Committee”) to nominate Executive to serve as a member of the Board each year Executive’s term of Board service is to be slated for reelection to the Board. If, during the Term, the Company’s stockholders vote in favor of the Nominating Committee’s nomination of Executive to serve as a member of the Board, Executive agrees to serve in such capacity and also agrees that any such Board service shall be without additional compensation.

 

(c)                                  Engaging in Other Activities.  During the Term, Executive shall devote substantially all of his business time, energies and talents to serving as President and Chief Executive Officer of the Company, and shall perform his duties conscientiously and faithfully, subject to the reasonable and lawful directions of the Board and in accordance with the policies, rules and decisions adopted from time to time by the Company and the Board.  During the Term, it shall not be a violation of this Agreement for Executive, subject to the requirements of Sections 8, 9 and 10 hereof, to (i) serve on civic or charitable boards, (ii) with the consent of the Board, which consent shall not be unreasonably withheld, serve on corporate boards unrelated

 

 

to the Company (and retain all compensation in whatever form for such service), (iii) deliver lectures and fulfill speaking engagements, and (iv) manage personal investments, so long as such activities (individually or in the aggregate) do not significantly interfere with the performance of Executive’s responsibilities as set forth in Sections 2(a) or 2(b) of this Agreement or Executive’s fiduciary duties to the Company.

 

(d)                                 Location.  Executive shall perform his duties and responsibilities hereunder principally at the Company’s corporate headquarters, which currently is in Irving, Texas; provided that Executive may be required under reasonable business circumstances to travel outside of such location in connection with performing his duties under this Agreement.

 

(e)                                  Affiliates.  Executive agrees to serve, without additional compensation, as an officer and director of each of the other members of the Company’s affiliates, as determined by the Board, provided that such service is covered by Section 3(h) of this Agreement.  As used in this Agreement, the term “affiliate” shall mean any entity controlled by, controlling, or under common control with, the Company.

 

(f)                                   Stock Ownership Guidelines.  Executive acknowledges and agrees to comply with the Company’s stock ownership guidelines for the Chief Executive Officer position, as the same may be amended from time to time.

 

(g)                                  Compensation Recovery Policy. Executive agrees to execute the Compensation Recovery Policy Acknowledgement and Agreement attached as Exhibit A to this Agreement.  Executive acknowledges that, notwithstanding any provision of this Agreement to the contrary, any incentive compensation or performance-based compensation paid or payable to Executive hereunder shall be subject to repayment or recoupment obligations arising under applicable law or the Company’s Compensation Recovery Policy, as the same may be amended from time to time.

 

3.                                      Compensation and Benefits.

 

(a)                                 Base Salary. During the Term, the Company shall pay Executive an annualized base salary (“Annual Base Salary”) at a rate of $675,000 U.S., effective retroactively to June 1, 2015, and payable in regular installments in accordance with the Company’s normal payroll practices.  During the Term, the Annual Base Salary shall be reviewed by the Board at such time as the salaries of other senior executives of the Company are reviewed generally.  The Annual Base Salary shall not be reduced other than in connection with an across-the-board salary reduction which applies in a comparable manner to other senior executives of the Company.  If so increased or reduced, then such adjusted salary will thereafter be the Annual Base Salary for all purposes under this Agreement.

 

(b)                                 Signing Bonus.   Within 30 business days after the Effective Date, Executive shall be paid a cash bonus of $212,300 (the “Signing Bonus”).  If Executive voluntarily terminates his employment without Good Reason, in either case prior to the filing of the Company’s Annual Report on Form 10-K for the 2015 fiscal year, then Executive shall be obligated to repay the Signing Bonus to the Company within 10 business days after Executive’s Date of Termination.   To the extent permitted by applicable law and Section 409A of the

 

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Internal Revenue Code of 1986, as amended (“Section 409A”), the Company may offset any amounts owed pursuant to this Section 3(b) against any amounts payable to Executive by the Company or its affiliates at the time that any such repayment is due and owing.  The terms Cause, Disability, Good Reason and Date of Termination shall have the meaning provided in Section 4 of this Agreement.

 

(c)                                  Annual Incentive.  For each fiscal year during the Term, Executive shall be eligible to participate in the Company’s Short-Term Incentive Plan, or any successor plan (the “STIP”), under terms and conditions no less favorable than other senior executives of the Company; provided that Executive’s “target” short-term incentive  opportunity shall not be less than 80% of his Annual Base Salary (the “Target STI”), with a minimum and maximum of 40% and 200% of his Annual Base Salary, respectively (or such higher percentages as determined by the Board or a committee thereof from time to time). Executive’s payment under the STIP for any fiscal year during the Term shall be based on the extent to which the predetermined performance objectives established by the Board or a committee thereof have been achieved for that year; provided that Executive’s short-term incentive opportunity for the 2015 fiscal year shall be subject to achievement of performance objectives established by the Board or a committee for the second half of the year, pro-rated from Executive’s date of hire through the end of the year, and with a reduction in the payout opportunity (threshold, target and maximum) of 50%.  The annual incentive for any fiscal year, if earned, will be paid to Executive by the Company in accordance with the terms, and subject to the conditions, of the STIP.  Nothing contained in this Section 3(c) will guarantee Executive any specific amount of annual incentive compensation or prevent the Board or a committee thereof from establishing performance goals and targets applicable only to Executive.

 

(d)                                 Equity Incentive Plan. The Company shall file a Form S-8 Registration Statement with the Securities and Exchange Commission registering the issuance of equity securities under the Company’s 2015 Equity Incentive Plan (the “Equity Incentive Plan”) as soon as administratively possible after such a Registration Statement would be eligible to become effective under the Securities Act of 1933, as amended.  Not later than 3 days after the effectiveness of such Registration Statement, the Compensation Committee of the Board shall approve a sign-on grant to Executive of restricted share units in respect of 100,000 shares of the Company’s common stock (the “RSUs”).  The RSUs shall be granted upon the terms, and subject to the conditions, of the Equity Incentive Plan and the award agreement evidencing the grant of the RSUs, a copy of which is attached as Exhibit B to this Agreement.  During the Term, the Company may, but shall have no obligation to, grant additional equity compensation awards to Executive under the Equity Incentive Plan or any successor equity plan.

 

(e)                                  Vacation.  During the Term, Executive shall be eligible for paid vacation in accordance with the Company’s policies, as may be in effect from time to time, for its senior executives generally; provided that Executive shall be entitled to paid vacation time at a rate of no less than 4 weeks per calendar year.  Executive shall use such vacation time at such reasonable time or times each year as he may determine after consultation with the Chairman of the Board.

 

(f)                                   Expense Reimbursement.  Executive shall be reimbursed for all reasonable travel and other out-of-pocket expenses actually and properly incurred by Executive during the Term

 

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in connection with carrying out his duties hereunder in accordance with the Company’s policies, as may be in effect from time to time, for its senior executives generally.  In addition, Executive shall be reimbursed for the cost of his roundtrip airline tickets (and related ground transportation and parking) for up to 2 monthly trips actually taken during the Term between Irving, Texas (or, if the Executive is traveling outside of such location in connection with performing his duties under this Agreement, such other location) and New York, New York.

 

(g)                                  Benefits.  During the Term, and except as otherwise provided in this Agreement, Executive shall be eligible to participate in all welfare, perquisites, fringe benefit, insurance, retirement and other benefit plans, practices, policies and programs, maintained by the Company and its affiliates applicable to senior executives of the Company generally, in each case as amended from time to time.

 

(h)                                 Indemnification and Insurance. The Company shall indemnify Executive to the full extent provided for in its corporate charter, bylaws or any other indemnification policy or procedure as in effect from time to time and applicable to its other directors and senior executives and to the maximum extent that the Company indemnifies any of its other directors and senior executives, and he will be entitled to the protection of any insurance policies the Company may elect to maintain generally for the benefit of its directors and senior executives against all costs, charges, liabilities and expenses incurred or sustained by him in connection with any action, suit or proceeding to which he may be made a party by reason of his being or having been a director, officer or employee of the Company or any of its affiliates or his serving or having served any other enterprise, plan or trust as a director, officer, employee or fiduciary at the request of the Company or any of its affiliates (other than any dispute, claim or controversy arising under or relating to this Agreement).

 

4.                                      Termination of Employment.

 

(a)                                 Death and Disability.  Executive’s employment shall terminate automatically upon Executive’s death.  If the Company determines in good faith that the Disability (as defined below) of Executive has occurred during the Term, it may give to Executive written notice in accordance with Section 14 of this Agreement of its intention to terminate Executive’s employment; provided that such notice is provided no later than 150 calendar days following the determination of Executive’s Disability.  In such event, Executive’s employment shall terminate effective on the 30th calendar day after receipt of such notice by Executive (the “Disability Effective Date”), provided that, within the 30 calendar days after such receipt, Executive shall not have returned to full-time performance of Executive’s duties.  For purposes of this Agreement, “Disability” shall mean the inability of Executive to perform the essential duties of the position held by Executive by reason of any medically determined physical or mental impairment that is reasonably expected to result in death or lasts for 120 consecutive calendar days in any one-year period, all as determined by an independent licensed physician mutually acceptable to the Company and Executive or Executive’s legal representative.

 

(b)                                 Cause.  Executive’s employment with the Company may be terminated by the Company with or without Cause.  For purposes of this Agreement, “Cause” shall mean: (i) the continued failure of Executive to perform substantially Executive’s duties with the Company or any of its affiliates or Executive’s material disregard of the directives of the Board (in each case

 

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other than any such failure resulting from any medically determined physical or mental impairment) that is not cured by Executive within 20 calendar days after a written demand for substantial performance is delivered to Executive by the Board which specifically identifies the manner in which the Board believes that Executive has not substantially performed Executive’s duties or disregarded a directive of the Board; (ii) willful material misrepresentation at any time by Executive to the Board; (iii) Executive’s commission of any act of fraud, misappropriation (other than misappropriation of a de minimis nature) or embezzlement against or in connection with the Company or any of its affiliates or their respective businesses or operations; (iv) a conviction, guilty plea or plea of nolo contendere of Executive for any crime involving dishonesty or for any felony; (v) a material breach by Executive of his fiduciary duties of loyalty or care to the Company or any of its affiliates or a material violation of the Company’s Code of Business Conduct and Ethics or any other material breach of a Company policy, as the same may be amended from time to time; (vi) the engaging by Executive in illegal conduct, gross misconduct, gross insubordination or gross negligence that is materially and demonstrably injurious to the Company’s business or financial condition; or (vii) a material breach by Executive of his representations under Section 7 of this Agreement or his obligations under Section 8, 9, 10 or 12 of this Agreement that, in the case of Sections 8, 9 or 12, is not cured (if curable) by Executive within 20 calendar days after written demand for such cure is delivered to Executive by the Board which specifically identifies the manner in which the Board believes that Executive has materially breached his obligations.

 

(c)                                  Good Reason.  Executive’s employment with the Company may be terminated by Executive with or without Good Reason.  For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following without Executive’s consent: (i) a material reduction by the Company of Executive’s title, duties, responsibilities or reporting relationship set forth in Section 2(a) or (b); (ii) a material reduction by the Company of Executive’s Annual Base Salary (other than as permitted in Section 3(a) of this Agreement) or Executive’s Target STI; (iii) a failure to nominate Executive for re-election as a member of the Board (but for the avoidance of doubt, neither the failure by the Company’s stockholders to elect or re-elect Executive as a member of the Board, nor Executive’s resignation from the Board following such failure, shall be deemed to constitute Good Reason for purposes of this Agreement); or (iv) any other material breach of this Agreement by the Company.  A termination of Executive’s employment by Executive shall not be deemed to be for Good Reason unless (x) Executive gives notice to the Company of the existence of the event or condition constituting Good Reason within 30 calendar days after such event or condition initially occurs or exists, and (y) the Company fails to cure such event or condition within 30 calendar days after receiving such notice.  Additionally, Executive must terminate his employment within 120 calendar days after the initial occurrence of the circumstance constituting Good Reason for such termination to be “Good Reason” hereunder.

 

(d)                                 Notice of Termination.  Any termination by the Company for Cause, or by  Executive for Good Reason, shall be communicated by Notice of Termination to the other party in accordance with Section 14.  For purposes of this Agreement, a “Notice of Termination” means a written notice which (i) indicates the specific termination provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Executive’s employment under the provision so indicated and (iii) if the Date of Termination (as defined below) is other than the

 

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date of receipt of such notice, specifies the termination date (which date shall be not more than 30 calendar days after the giving of such notice).  The failure by the Company or Executive to set forth in the Notice of Termination any fact or circumstance which contributes to a showing of Cause or Good Reason shall not waive any right of the Company or Executive, respectively, hereunder or preclude the Company or Executive, respectively, from asserting such fact or circumstance in enforcing the Company’s or Executive’s rights hereunder.

 

(e)                                  Date of Termination. “Date of Termination” means (i) if Executive’s employment is terminated by the Company for Cause, or by Executive for Good Reason, the date of receipt of the Notice of Termination or any later date specified therein within 30 calendar days after such notice, as the case may be, (ii) if Executive’s employment is terminated by the Company other than for Cause or Disability, or if Executive voluntarily resigns without Good Reason, the date on which the terminating party notifies the other party that such termination shall be effective, provided that on a voluntary resignation without Good Reason, the Company may, in its sole discretion, make such termination effective on any date it elects in writing between the date of the notice and the proposed date of termination specified in the notice, (iii) if Executive’s employment is terminated by reason of death, the date of death of Executive, (iv) if Executive’s employment is terminated by the Company due to Disability, the Disability Effective Date, or (v) if Executive’s employment is terminated at the end of the Term, the end of the Term.

 

(f)                                   Resignation from All Positions.  Notwithstanding any other provision of this Agreement, upon the termination of Executive’s employment by the Company for any reason, Executive shall immediately resign from all positions that he holds or has ever held with the Company and its affiliates, other than his position on the Board.  If Executive is terminated for Cause, Executive shall also immediately resign from his position on the Board. Executive hereby agrees to execute any and all documentation to effectuate such resignations upon request by the Company, but he shall be treated for all purposes as having so resigned upon termination of his employment, regardless of when or whether he executes any such documentation.

 

5.                                      Severance Payments.

 

(a)                                 Good Reason, Other than for Cause.  If, during the Term, the Company shall terminate Executive’s employment other than for Disability or Cause (but excluding by reason of the Company providing notice of its intention not to renew the Term), or if Executive shall terminate employment for Good Reason:

 

(i)                                     The Company shall pay, or cause to be paid, to Executive the sum of:  (A) the portion of Executive’s Annual Base Salary earned through the Date of Termination, to the extent not previously paid; and (B) any accrued vacation pay, to the extent not previously paid (the sum of the amounts described in clauses (A) and (B) shall be referred to as the “Accrued Benefits”).  The Accrued Benefits shall be paid in a single lump sum within 30 calendar days after the Date of Termination.

 

(ii)                                  Subject to Section 6 hereof, the Company shall continue to pay, or cause to be paid, to Executive, continued Annual Base Salary (without taking into account any reduction to the Annual Base Salary that constitutes Good Reason for Executive’s termination),

 

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for the 18-month period commencing on the Date of Termination (such period, the “Severance Period”), payable over the Severance Period in equal semi-monthly or other installments (not less frequently than monthly), with the installments that otherwise would be paid within the first 90 calendar days after the Date of Termination being paid in a lump sum (without interest) on the 90th calendar day after the Date of Termination and the remaining installments being paid as otherwise scheduled assuming payments had begun immediately after the Date of Termination.  Notwithstanding and in lieu of the foregoing, if the termination described in this Section 5(a) occurs within 90 calendar days prior to, or within 2 years following, a Change in Control (as defined in the Equity Incentive Plan), the Company shall pay or cause to be paid to Executive on the 90th calendar day after the Date of Termination (and in lieu of the amounts described in the first sentence of this Section 5(a)(ii)) a lump-sum payment equal to the sum of (A) the product of the Annual Base Salary (without taking into account any reduction to the Annual Base Salary that constitutes Good Reason for Executive’s termination) multiplied by 2, and (B) Executive’s Target STI under the STIP for the fiscal year during which the Date of Termination occurs (without pro-ration).

 

(iii)                               Subject to Section 6 hereof, the Company shall pay to Executive the amount of any annual incentive that has been earned by Executive for a completed fiscal year or other measuring period preceding the Date of Termination (or that would have been earned by Executive had his employment continued through the date such annual incentive is paid to other senior executives), but has not yet been paid to Executive (the “Prior Year Annual Incentive”), payable in a single lump sum no later than two and one-half months following the end of the completed fiscal year or other measuring period.

 

(iv)                              Subject to Section 6 hereof, and if and only if Executive’s Date of Termination occurs at least 3 full calendar months after the beginning of the Company’s fiscal year, Executive will be eligible to receive an annual incentive under the STIP for the fiscal year during which the Date of Termination occurs, determined as if Executive had remained employed for the entire year (and any additional period of time necessary to be eligible to receive the annual incentive for the year), based on actual Company performance during the entire fiscal year and without regard to any discretionary adjustments that have the effect of reducing the amount of the annual incentive (other than discretionary adjustments applicable to all senior executives who did not terminate employment), and assuming that any individual goals applicable to Executive were satisfied at the “target” level, pro-rated based on the number of days in the Company’s fiscal year through (and including) the Date of Termination (the “Pro-Rated Annual Incentive”).  The Pro-Rated Annual Incentive shall be payable in a single lump sum at the same time that payments are made to other participants in the STIP for that fiscal year (pursuant to the terms of the STIP but in no event later than  two and one-half months after the fiscal year during which the Date of Termination occurs).

 

(v)                                 To the extent not theretofore paid or provided, the Company shall pay or provide, or cause to be paid or provided, to Executive (or his estate) any other amounts, benefits or equity awards required to be paid or provided or which Executive is eligible to receive under any plan, program, policy or practice or contract or agreement of the Company, including any benefits to which Executive is entitled under Part 6 of Subtitle B of Title I of the Employee Retirement Income Security Act of 1974, as amended (such other amounts and benefits shall be hereinafter referred to as the “Other Benefits”) in accordance with the terms and normal

 

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procedures of each such plan, program, policy or practice or contract or agreement, based on accrued and vested benefits through the Date of Termination.

 

(b)                                 Cause; Other than for Good Reason.  If, during the Term, Executive’s employment is terminated for Cause, or if Executive voluntarily terminates his employment without Good Reason (including by reason of Executive providing notice of his intention not to renew the Term), then the Company shall pay or provide to Executive the Accrued Benefits, payable in accordance with Section 5(a)(i) of this Agreement, and the Other Benefits, and no further amounts shall be payable to Executive under this Section 5 after the Date of Termination.

 

(c)                                  Non-Renewal of Term by the Company.  If, during the Term, the Company provides notice of its intention not to renew the Term, and Executive’s employment terminates at the end of the Term as a result thereof, then the Company shall pay or provide to Executive (i) the Accrued Benefits, payable in accordance with Section 5(a)(i) of this Agreement, (ii) the Other Benefits, (iii) subject to Section 6 hereof, the Prior Year Annual Incentive, payable in accordance with Section 5(a)(iii) of this Agreement, (iv) subject to Section 6 hereof, and if and only if Executive’s Date of Termination occurs at least 3 full calendar months after the beginning of the Company’s fiscal year, the Pro-Rated Annual Incentive (calculated solely for purposes of this Section 5(c) assuming “target” performance for each individual and corporate goal), payable in accordance with Section 5(a)(iv) of this Agreement, (v) subject to Section 6 hereof, and provided that Executive first enters into a consulting agreement provided by the Company with respect to post-termination transition services, the Company shall pay, or cause to be paid, to Executive an amount equal to the product of 1.5 multiplied by his Annual Base Salary (which amount shall be in lieu of any retainer or consulting fee under the consulting agreement), payable in equal semi-monthly or other installments (not less frequently than monthly) during the Severance Period, with the installments that otherwise would be paid within the first 60 calendar days after the Date of Termination being paid in a lump sum (without interest) on the 60th day after the Date of Termination and the remaining installments being paid as otherwise scheduled assuming payments had begun immediately after the Date of Termination, and (vi) solely for purposes of determining Executive’s rights, if any, under any outstanding equity awards held by Executive as of the Date of Termination (and not for any other purpose), Executive shall be deemed to have been terminated by the Company without “cause”.

 

(d)                                 Disability and Death.  If, during the Term, Executive’s employment is terminated for Disability or Executive dies, then the Company shall pay or provide to Executive (or his estate) (i) the Accrued Benefits, payable in accordance with Section 5(a)(i) of this Agreement, (ii) the Other Benefits, (iii) subject to Section 6 hereof, the Prior Year Annual Incentive, payable in accordance with Section 5(a)(iii) of this Agreement, (iv) subject to Section 6 hereof, and if and only if Executive’s Date of Termination occurs at least 3 full calendar months after the beginning of the Company’s fiscal year, the Pro-Rated Annual Incentive, payable in accordance with Section 5(a)(iv) of this Agreement, and (v) in the case of termination for Disability, and subject to Section 6 hereof, an amount equal to the excess, if any, of Executive’s Annual Base Salary for 6 months, over the amounts payable to Executive under the Company’s short-term disability insurance program, which amount shall be payable in equal semi-monthly or other installments (not less frequently than monthly) over the period commencing on the

 

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Date of Termination and ending 6 months thereafter, with the installments that otherwise would be paid within the first 60 calendar days after the Date of Termination being paid in a lump sum (without interest) on the 60th day after the Date of Termination and the remaining installments being paid as otherwise scheduled assuming payments had begun immediately after the Date of Termination.

 

(e)                                  Full Settlement; Offset.  The Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment, defense or other claim, right or action which the Company or any of its affiliates may have against Executive or others, except as otherwise may be provided in this Section or Section 2(g) or Section 11 hereof.  In no event shall  Executive be obligated to seek other employment or take any other action by way of mitigation of the amounts payable to Executive under any of the provisions of this Agreement and such amounts shall not be reduced whether or not Executive obtains other employment.  Notwithstanding the foregoing provisions of this Section 5(e), any payments otherwise due to Executive under Sections 5(a)(ii) or 5(c)(v) of this Agreement shall be subject to offset and reduced, on a dollar-for-dollar basis, by any cash retainer or meeting fees and any equity awards (based on grant date fair value for accounting purposes) that Executive receives in connection with serving on the Board during the Severance Period.

 

(f)                                   Section 280G.  In the event it shall be determined that any payment or distribution by the Company or any of its affiliates to or for the benefit of  Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise) (the “Total Payments”), is or will be subject to the excise tax (the “Excise Tax”) imposed by Section 4999 of the Internal Revenue Code of 1986, as amended (the “Code”), then the Total Payments shall be reduced to the maximum amount that could be paid to Executive without giving rise to the Excise Tax (the “Safe Harbor Cap”), if the net after-tax benefit to Executive after reducing Executive’s Total Payments to the Safe Harbor Cap is greater than the net after-tax (including the Excise Tax) benefit to Executive without such reduction. The reduction of the amounts payable hereunder, if applicable, shall be made by reducing first the payment made pursuant to Section 5(a)(ii) of this Agreement, then to the payment made pursuant to Section 5(a)(iii) of this Agreement, then to the payment made pursuant to Section 5(a)(iv) of this Agreement, and then to any other payment that triggers such Excise Tax in the following order: (i) reduction of cash payments; (ii) cancellation of accelerated vesting of performance-based equity awards (based on the reverse order of the date of grant); (iii) cancellation of accelerated vesting of other equity awards (based on the reverse order of the date of grant); and (iv) reduction of any other payments due to Executive (with benefits or payments in any group having different payment terms being reduced on a pro-rata basis). All mathematical determinations, and all determinations as to whether any of the Total Payments are “parachute payments” (within the meaning of Section 280G of the Code), that are required to be made under this paragraph, including determinations as to whether the Total Payments to Executive shall be reduced to the Safe Harbor Cap and the assumptions to be utilized in arriving at such determinations, shall be made at the Company’s expense by a nationally recognized accounting firm mutually acceptable to the Company and Executive.

 

6.                                      Release. Notwithstanding anything contained herein to the contrary, the Company shall not be obligated to make any payment or provide any benefit under Sections

 

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5(a)(ii), (iii) and (iv), Sections 5(c)(iii), (iv) and (v), or Sections 5(d)(iii), (iv) and (iv) hereof unless:  (a) Executive or Executive’s legal representative first executes within 50 calendar days after the Date of Termination a release of claims agreement in the form attached hereto as Exhibit C, with such changes as the Company, after consulting with Executive or Executive’s legal representative, may determine to be required or reasonably advisable in order to make the release enforceable and otherwise compliant with applicable law (the “Release”), (b) Executive does not revoke the Release, and (c) the Release becomes effective and irrevocable in accordance with its terms.

 

7.                                      Representations.  Executive hereby represents and warrants to the Company that Executive is not party to any contract, understanding, agreement or policy, whether or not written, with his current employer (or any other previous employer) or otherwise, that would be breached by Executive’s entering into, or performing services under, this Agreement.  Executive further represents that he has disclosed to the Company in writing all material threatened, pending, or actual claims against Executive that are unresolved and still outstanding as of the Effective Date, in each case of which he is aware, resulting or arising from his service with his current employer (or any other previous employer) or his membership on any boards of directors.

 

8.                                      Work Product. Executive agrees that all inventions, drawings, improvements, developments, methods, processes, programs, designs and all similar or related information which relates to the Company’s or any of its affiliates’ actual or anticipated business or research and development or existing or future products or services and which are conceived, developed, contributed to or made by Executive (either solely or jointly with others) while employed by or serving as a consultant to the Company or any of its affiliates (“Work Product”) shall be the sole and exclusive property of the Company or any such affiliate. Executive will promptly disclose such Work Product to the Company and perform all actions requested by the Company (whether during or after employment) to establish and confirm such ownership (including, without limitation, assignments, consents, powers of attorney and other instruments).

 

9.                                      Confidential Information.

 

(a)                                 “Confidential Information” means information disclosed to Executive or known by Executive as a result of employment by the Company, not generally known to the trade or industry in which the Company or its affiliates are engaged, about products, processes, technologies, machines, customers, clients, employees, services and strategies of the Company and its affiliates, including, but not limited to, inventions, research, development, manufacturing, purchasing, financing, computer software, computer hardware, automated systems, engineering, marketing, merchandising, selling, sales volumes or strategies, number or location of sales representatives, names or significance of the Company’s customers or clients or their employees or representatives, preferences, needs or requirements, purchasing histories, or other customer or client-specific information.  Such Confidential Information is and shall continue to be the property of the Company.

 

(b)                                 Executive recognizes that Confidential Information is of great value to the Company, that the Company has legitimate business interests in protecting its confidential information, and that the disclosure to anyone not authorized to receive such information will

 

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cause immediate and irreparable injury to the Company.  Except as required by law or in the performance of his duties for the Company, unless Executive first secures the Company’s written consent, Executive will not divulge, disclose, use, copy, disseminate, lecture upon or publish Confidential Information.  Executive understands and agrees that the obligations not to disclose, use, disseminate, lecture upon or publish Confidential Information shall continue after termination of employment for any reason.  Further, Executive will use his best efforts and diligence to safeguard and to protect the Confidential Information against disclosure, misuse, espionage, loss or theft.

 

(c)           Executive agrees that upon the Date of Termination, or at any other time that the Company may request, for whatever reason, Executive shall deliver (and in the event of Executive’s death or Disability, his representative shall deliver) to the Company all computer equipment or backup files of or relating to the Company or its affiliates, all memoranda, correspondence, customer data, notes, plans, records, reports, manuals, photographs, computer tapes and software and other documents and data (and all copies thereof) relating to Confidential Information, Work Product, or the business of the Company or its affiliates which Executive has in his possession, custody or control.  If the Company requests, Executive (or his representative) agrees to provide written confirmation that Executive has returned all such materials.

 

(d)           Executive agrees that upon the Date of Termination, or at any other time that the Company may request, for whatever reason, Executive shall assign all rights, title and interest in the Confidential Information, the Work Product, all computer equipment or backup files of or relating to the Company or its affiliates, all memoranda, correspondence, customer data, notes, plans, records, reports, manuals, photographs, computer tapes and software and other documents and data (and all copies thereof) relating to Confidential Information, Work Product, or the business of the Company or its affiliates which Executive has in his possession, custody or control.

 

10.          Non-compete; Non-solicitation.

 

(a)           Executive agrees that during the Term and thereafter during the Protection Period (as defined in Section 10(f) below), Executive will not directly or indirectly (by himself or in association with any individual or entity) own, operate, manage, control, be employed by, participate in, consult with, advise, provide services for, or in any manner engage in any business which competes in any way with the business of the Company and its affiliates, which the parties acknowledge includes the provision of power generation equipment and modification and maintenance services for customers in the domestic and international energy, power infrastructure or service industries, or in any other business activity that the Company or its affiliates is conducting, or has active plans to conduct, as of the Date of Termination.  This restriction shall apply to any geographic area in which the Company, or any affiliate for which Executive had any responsibilities during the term of his employment, engaged in business, or had active plans to engage in business, during the term of Executive’s employment.  The restrictions contained herein shall not prohibit Executive from being a passive owner of not more than 5% of the outstanding stock of a corporation which is publicly traded, so long as Executive has no active participation in the business of such corporation.  Notwithstanding the foregoing, with respect to an entity which is engaged in both a competing business and a non-

 

11

 

competing business, Executive may provide services to the non-competing business, provided that Executive does not render any services or advice, directly or indirectly, to the competing business.

 

(b)           Executive agrees that during the Term and thereafter during the Protection Period, Executive will not directly or indirectly:  (i) solicit or induce, or attempt to solicit or induce, any employee, consultant or independent contractor of the Company or of any affiliate to terminate his or her employment or relationship with the Company or affiliate; (ii) hire any person who Executive knows was an employee, consultant or independent contractor of the Company or of any affiliate during the last 6 months of Executive’s employment by the Company; or (iii) induce or attempt to induce any customer, supplier, distributor, franchisee, licensee, or other individual or entity that has any business relationship with the Company or any of its affiliate to cease doing business with the Company or any of its affiliates, or in any way interfere with the relationship between any such customer, supplier, distributor, franchisee, licensee, or any other individual or entity and the Company or any of its affiliates.

 

(c)           To enable the Company to monitor Executive’s compliance with the obligations imposed by this Agreement, Executive agrees to inform the Company, upon the Date of Termination, of the identity of any new employer and of Executive’s new job title.  Executive will continue to so inform the Company, in writing, any time Executive changes employment during the Protection Period.

 

(d)           In the event that any of these provisions are deemed invalid or unenforceable under applicable law, that shall not affect the validity or enforceability of the remaining provisions.  To the extent any provision is unenforceable because it is overbroad, that provision shall be limited to the extent required by applicable law and enforced as so limited.

 

(e)           Executive has carefully considered the nature and extent of the restrictions upon him and the rights and remedies conferred upon the Company under this Section 10, and hereby acknowledges and agrees that the same are reasonable in time and territory, are designed to eliminate competition that otherwise would be unfair to the Company, do not stifle the inherent skill and experience of Executive, would not operate as a bar to Executive’s sole means of support, are fully required to protect the legitimate interests of the Company, and do not confer a benefit upon the Company disproportionate to the detriment to Executive.

 

(f)            For purposes of this Section 10, the term “Protection Period” shall mean the period commencing on the Date of Termination and ending on the date 18 months after the Date of Termination, provided, however, that such period shall be extended by any length of time during which Executive is in breach of the covenants contained in this Section 10.

 

11.          Remedies.  Executive recognizes and affirms that in the event of his breach of any provision of this Sections 8, 9 or 10 hereof, money damages would be inadequate and the Company would have no adequate remedy at law. Accordingly, Executive agrees that in the event of a breach or a threatened breach by Executive of any of the provisions of Sections 8, 9 or 10, the Company, in addition and supplementary to other rights and remedies existing in its favor, may (a) apply to any court of law or equity of competent jurisdiction for specific performance and/or injunctive or other relief in order to enforce or prevent any violations of the

 

12

 

provisions hereof (without posting a bond or other security), and (b) exercise its rights hereunder to cease any further payments and/or vesting of equity awards.  Executive understands and acknowledges that the Company can bar him from disclosing or using Confidential Information, bar him from accepting or continuing prohibited employment or rendering prohibited services, or bar him from soliciting certain individuals and entities for the periods specified in Sections 8, 9 and 10 above.  In the event that the Company institutes legal action to enforce Sections 8, 9 or 10 of this Agreement, Executive agrees that the Company shall be entitled to recover from him its costs of any action (including reasonable attorneys’ and expert fees and expenses).  Nothing in this Section 11 will be deemed to limit the Company’s remedies at law or in equity for any breach by Executive of any of the provisions of Sections 8, 9 or 10 that may be pursued or availed of by the Company.

 

12.          Cooperation in Investigations and Proceedings. During the Term and for a period of 5 years thereafter, Executive shall cooperate with the Company and its affiliates, upon the Company’s reasonable request, with respect to any internal investigation or administrative, regulatory or judicial proceeding involving matters occurring, in whole or in part, during such employment with the Company and within the scope of Executive’s duties and responsibilities to the Company during his employment with the Company (including, without limitation, Executive being available to the Company upon reasonable notice for interviews and factual investigations, appearing at the Company’s reasonable request to give testimony without requiring service of a subpoena or other legal process, and turning over to the Company all relevant Company documents which are or may have come into Executive’s possession during his employment).  In requesting Executive’s cooperation, the Company shall take into account his other personal and professional obligations.  Executive shall be reimbursed for the reasonable expenses Executive incurs in connection with any such cooperation and/or assistance and shall receive from the Company hourly compensation equal to the Annual Base Salary immediately prior to the Date of Termination divided by 1,800 hours, in each case in connection with any assistance or cooperation that occurs after the Date of Termination.  Any such reimbursements or per diem compensation shall be paid to Executive no later than the 15th day of the month immediately following the month in which such expenses were incurred or such cooperation and/or assistance was provided (subject to Executive’s timely submission to the Company of proper documentation with respect thereto).

 

13.          Survival.   Subject to any limits on applicability contained therein, Sections 2(g), 3(h), 4(f), 5, 6, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 20, 21, 23 and 24 shall survive and continue in full force in accordance with their terms notwithstanding any termination of the Term or this Agreement.

 

14.          Notices.   Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, sent by reputable overnight carrier or mailed by first class mail, return receipt requested, to the recipient.  Notices to Executive shall be sent to the address of Executive most recently provided to the Company.  Notices to the Company should be sent to Global Power Equipment Group Inc., 400 E. Las Colinas Boulevard, Suite No. 400 Irving, TX 75039, Attention:  General Counsel.  Any notice under this Agreement will be deemed to have been given when so delivered, sent or mailed.

 

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15.          Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

 

16.          Source of Payment.   Any payments to Executive under this Agreement shall be paid from the Company’s general assets.

 

17.          Complete Agreement. This Agreement embodies the complete agreement and understanding between the parties with respect to the subject matter hereof and effective as of its date supersedes and preempts any prior understandings, agreements or representations by or between the parties, written or oral, which may have related to the subject matter hereof in any way, including the letter agreement between Executive and the Company dated as of March 20, 2015.

 

18.          Withholding of Taxes.  The Company and its affiliates may withhold from any amounts payable under this Agreement all federal, state, city or other taxes as the Company and its affiliates are required to withhold pursuant to any law or government regulation or ruling.

 

19.          Counterparts. This Agreement may be executed in separate counterparts, each of which shall be deemed to be an original and both of which taken together shall constitute one and the same agreement.

 

20.          Successors and Assigns.

 

(a)           This Agreement is personal to Executive, and, without the prior written consent of the Company, shall not be assignable by Executive other than by will or the laws of descent and distribution.  This Agreement shall inure to the benefit of and be enforceable by Executive’s legal representatives.

 

(b)           This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.  Except as provided in Section 20(c), without the prior written consent of Executive this Agreement shall not be assignable by the Company, except to an affiliate.

 

(c)           The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession had taken place.  “Company” means the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid that assumes and agrees to perform this Agreement by operation of law or otherwise.

 

21.          Choice of Law. This Agreement shall be governed, construed, interpreted and enforced in accordance with the substantive laws of the State of Delaware, without regard to

 

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conflicts of law principles.  The parties hereto irrevocably agree to submit to the jurisdiction and venue of the federal and state courts located in Delaware in any court action or proceeding brought with respect to or in connection with this Agreement.

 

22.          Voluntary Agreement.  Executive and the Company represent and agree that each has reviewed all aspects of this Agreement, has carefully read and fully understands all provisions of this Agreement, and is voluntarily entering into this Agreement. Each party represents and agrees that such party has had the opportunity to review any and all aspects of this Agreement with legal, tax or other adviser(s) of such party’s choice before executing this Agreement.

 

23.          Amendment and Waiver.  The provisions of this Agreement may be amended or waived only with the prior written consent of the Company and Executive, and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding effect or enforceability of this Agreement.

 

24.          Section 409A Compliance.

 

(a)           In General.  Section 409A imposes payment restrictions on “nonqualified deferred compensation” (i.e., potentially including payments owed to Executive upon termination of employment).  Failure to comply with these restrictions could result in negative tax consequences to Executive, including immediate taxation, interest and a 20% additional income tax. It is the Company’s intent that this Agreement be exempt from the application of, or otherwise comply with, the requirements of Section 409A.  Specifically, any taxable benefits or payments provided under this Agreement are intended to be separate payments that qualify for the “short-term deferral” exception to Section 409A to the maximum extent possible, and to the extent they do not so qualify, are intended to qualify for the involuntary separation pay exceptions to Section 409A, to the maximum extent possible.  If neither of these exceptions applies, and if Executive is a “specified employee” within the meaning of Section 409A, then notwithstanding any provision in this Agreement to the contrary and to the extent required to comply with Section 409A, all amounts that would otherwise be paid or provided during the first 6 months following the Date of Termination shall instead be accumulated through and paid or provided (without interest) on the first business day following the 6-month anniversary of the Date of Termination.

 

(b)           Separation from Service.  A termination of employment shall not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits subject to Section 409A upon or following a termination of employment unless such termination is also a “separation from service” within the meaning of Section 409A and Executive is no longer providing services (at a level that would preclude the occurrence of a “separation from service” within the meaning of Section 409A) to the Company or its affiliates as an employee or consultant, and for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or like terms shall mean “separation from service” within the meaning of Section 409A.  Further, for purposes of determining the time and form of any payment to Executive under Section 5(a)(ii) of the Agreement, the term “Change in Control” shall, to the extent necessary under Section 409A to provide for payment of such amounts in a single lump sum, be deemed to mean a “Change in

 

15

 

Control” as defined in the Equity Incentive Plan that constitutes a “change in the ownership”, a “change in the effective control” or a “change in the ownership of a substantial portion of the assets” of the Company within the meaning of Section 409A.

 

(c)           Reimbursements.  With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Section 409A: (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year, and (iii) such payments shall be made on or before the last business day of Executive’s taxable year following the taxable year in which the expense occurred, or such earlier date as required hereunder.

 

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IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date first written above.

 

	
GLOBAL   POWER EQUIPMENT
    	
 
    	
EXECUTIVE
    
	
GROUP   INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Michael E. Rescoe
    	
 
    	
/s/   Terence J. Cryan
    
	
By:   Michael E. Rescoe
    	
 
    	
Terence   J. Cryan
    
	
Its:   Chairman of the Compensation Committee of the Board of Directors
    	
 
    	
 
    

 

17

 

EXHIBIT A

COMPENSATION RECOVERY POLICY 
 ACKNOWLEDGEMENT AND AGREEMENT

 

This Compensation Recovery Policy Acknowledgement and Agreement (this “Agreement”) is entered into as of the        day of June, 2015, between Global Power Equipment Group Inc. (the “Company”) and Terence J. Cryan (“Executive”).

 

Recitals:

 

WHEREAS, Executive is an “executive officer” of the Company as defined in Rule 3b-7 under the Securities Exchange Act of 1934;

 

WHEREAS, the Company’s Board of Directors has adopted the Global Power Equipment Group Inc. Compensation Recovery Policy, as the same may be amended from time-to-time (the “Policy”); and

 

WHEREAS, in consideration of, and as a condition to the receipt of, future performance-based compensation, Executive and the Company are entering into this Agreement.

 

Agreement:

 

NOW, THEREFORE, the Company and Executive hereby agree as follows:

 

1.            Executive acknowledges receipt of the Policy, a copy of which is attached hereto as Annex A and is incorporated into this Agreement by reference. Executive has read and understands the Policy and has had the opportunity to ask questions of the Company regarding the Policy.

 

2.            Executive hereby acknowledges and agrees that the Policy shall apply to any annual incentives, time-based restricted share units, performance-based restricted share units, stock options or other performance-based compensation granted on or after March 20, 2015 (collectively, the “Incentive Compensation”), and all such Incentive Compensation shall be subject to repayment or forfeiture under the Policy.

 

3.            Each award agreement or other document setting forth the terms and conditions of Incentive Compensation granted to Executive shall include a provision incorporating the requirements of the Policy; provided that the Company’s failure to incorporate the Policy into any award agreement or other document shall not waive the Company’s right to enforce the Policy.  In the event of any inconsistency between the provisions of the Policy and the applicable award agreement or other document setting forth the terms and conditions of any Incentive Compensation, the terms of the Policy shall govern.

 

4.            The repayment or forfeiture of Incentive Compensation pursuant to the Policy and this Agreement shall not in any way limit or affect the Company’s right to pursue disciplinary action or dismissal, take legal action or pursue any other remedies available to the Company, including, without limitation, enforcing the forfeiture and repayment provisions under the Company’s equity incentive plan. This Agreement and the Policy shall not replace, and shall be

 

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in addition to, any rights of the Company to recover Incentive Compensation, or any other compensation, from its executive officers under applicable laws and regulations, including but not limited to the Sarbanes-Oxley Act of 2002.

 

5.            To the extent that Incentive Compensation subject to repayment or forfeiture under the Policy is not immediately returned or paid to the Company or forfeited, the Company may, to the extent permitted by law, seek other remedies, including a set off of the amounts so payable to it against any amounts that may be owing from time-to-time by the Company or a subsidiary to Executive for any reason, including, without limitation, wages, future payments of Incentive Compensation, severance, or vacation pay or other benefits; provided, however, that, except to the extent permitted by Treasury Regulation Section 1.409A-3(j)(4), such offset shall not apply to amounts that are “deferred compensation” within the meaning of Section 409A of the Internal Revenue Code.

 

6.            Executive acknowledges that Executive’s execution of this Agreement is in consideration of, and is a condition to, the receipt by Executive of awards of Incentive Compensation from the Company on and after the date hereof; provided, however, that nothing in this Agreement shall be deemed to obligate the Company to make any such awards to Executive.

 

7.            This Agreement may be executed in two or more counterparts, and by facsimile or electronic transmission, each of which will be deemed to be an original but all of which, taken together, shall constitute one and the same Agreement.

 

8.            No modifications, waivers or amendments of the terms of this Agreement shall be effective unless in writing and signed by the parties or their respective duly authorized agents.  Notwithstanding the foregoing, the Company may amend the Policy at any time, in its sole discretion, as the Company reasonably determines to be necessary or advisable for the Policy to comply with the Dodd-Frank Wall Street Reform and Consumer Protection Act or any other rules or regulations issued by the Securities and Exchange Commission or applicable securities exchanges and Executive hereby consents to any such amendment.

 

9.            To the extent not preempted by federal law, this Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to principles of conflict of laws.  Each of this Agreement and the Policy shall survive and continue in full force in accordance with its terms notwithstanding any termination of Executive’s employment with the Company and its affiliates.  The provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, administrators, heirs, legal representatives and assigns of Executive, and the successors and assigns of the Company.  If any provision of this Agreement is or becomes invalid, illegal or unenforceable in any jurisdiction, or would disqualify this Agreement under any law deemed applicable by the Company, such provision shall be construed or deemed amended or limited in scope to conform to applicable laws or, in the discretion of the Company, it shall be stricken and the remainder of this Agreement shall remain in full force and effect.

 

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A-2

 

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

 

	
GLOBAL   POWER EQUIPMENT
    	
 
    	
EXECUTIVE
    
	
GROUP   INC.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:   Michael E. Rescoe
    	
 
    	
Terence   J. Cryan
    
	
Its:   Chairman of the Compensation Committee of the Board of Directors
    	
 
    	
 
    

 

A-3

 

ANNEX A

GLOBAL POWER EQUIPMENT GROUP INC.
 COMPENSATION RECOVERY POLICY

 

NOW, THEREFORE, BE IT RESOLVED, that the Corporation hereby adopts a compensation recovery policy on the following terms and conditions, effective with respect to annual incentives or other performance-based compensation granted on or after January 1, 2011:

 

Each executive officer shall repay or forfeit, to the fullest extent permitted by law and as directed by the Board, any annual incentive or other performance-based compensation received by him or her if:

 

·                  the payment, grant or vesting of such compensation was based on the achievement of financial results that were subsequently the subject of a restatement of the Corporation’s financial statements filed with the Securities and Exchange Commission,

 

·                  the Board determines in its sole discretion, exercised in good faith, that the executive officer engaged in fraud or misconduct that caused or contributed to the need for the restatement,

 

·                  the amount of the compensation that would have been received by the executive officer had the financial results been properly reported would have been lower than the amount actually received, and

 

·                  the Board determines in its sole discretion that it is in the best interests of the Corporation and its stockholders for the executive officer to repay or forfeit all or any portion of the compensation.

 

The Board, acting solely by the independent directors as identified under the applicable exchange listing standards, shall have full and final authority to make all determinations under this policy, including without limitation whether the policy applies and if so, the amount of compensation to be repaid or forfeited by the executive officer.  All determinations and decisions made by the Board pursuant to the provisions of this policy shall be final, conclusive and binding on all persons, including the Corporation, its affiliates, its stockholders and employees.

 

From and after January 1, 2011, each award agreement or other document setting forth the terms and conditions of any annual incentive or other performance-based award granted to an executive officer shall include a provision incorporating the requirements of this policy. Moreover, each executive officer will be required to sign a Compensation Recovery Policy Acknowledgement and Agreement in a form attached to this resolution as Exhibit A.  The remedy specified in this policy shall not be exclusive and shall be in addition to every other right or remedy at law or in equity that may be available to the Corporation.

 

A-4

 

EXHIBIT B

GLOBAL POWER EQUIPMENT GROUP INC. 
 RESTRICTED SHARE UNIT AGREEMENT

 

Notice of Restricted Share Unit Award

 

Global Power Equipment Group Inc. (the “Company”) grants to the Grantee named below, in accordance with the terms of the Global Power Equipment Group Inc. 2015 Equity Incentive Plan (the “Plan”) and this Restricted Share Unit Agreement (the “Agreement”), the number of Restricted Share Units (the “Restricted Share Units”), as of the Date of Grant set forth below.  Capitalized terms used in this Agreement without definition shall have the meanings assigned to them in the Plan.

 

	
Name of Grantee:
    	
 
    	
Terence J. Cryan
    
	
 
    	
 
    	
 
    
	
Date of Grant:
    	
 
    	
[·],   2015
    
	
 
    	
 
    	
 
    
	
Number of Restricted   Share Units:
    	
 
    	
100,000
    
	
 
    	
 
    	
 
    
	
Vesting Commencement   Date:
    	
 
    	
June 1, 2015
    
	
 
    	
 
    	
 
    
	
Vesting Dates:
    	
 
    	
September 1, 2015
    
	
 
    	
 
    	
December 1, 2015
    
	
 
    	
 
    	
March 1, 2016
    
	
 
    	
 
    	
June 1, 2016
    
	
 
    	
 
    	
September 1, 2016
    
	
 
    	
 
    	
December 1, 2016
    
	
 
    	
 
    	
March 1, 2017
    
	
 
    	
 
    	
June 1, 2017
    

 

Terms of Agreement

 

1.                                      Grant of Restricted Share Units. Subject to and upon the terms, conditions, and restrictions set forth in this Agreement and in the Plan, the Company hereby grants to the Grantee as of the Date of Grant, the Restricted Share Units set forth above. Each Restricted Share Unit shall represent the contingent right to receive one Share and shall at all times be equal in value to one Share. The Restricted Share Units shall be credited in a book entry account established for the Grantee until payment in accordance with Section 2 hereof.

 

2.                                      Vesting and Payment of Restricted Share Units.

 

(a)                                 In General.  The Restricted Share Units shall vest to the extent of 12,500 Restricted Share Units on each of the Vesting Dates set forth above (each a “Vesting Date”), provided that the Grantee shall have remained in the continuous employ of the Company or a Subsidiary through the applicable Vesting Date.  The Company shall deliver to the Grantee the Shares underlying the vested Restricted Share Units within 10 days following the Vesting Date.  For purposes of this Section 2, the continuous employment of the Grantee with the Company and

 

B-1

 

its Subsidiaries shall not be deemed to have been interrupted, and the Grantee shall not be deemed to have ceased to be an employee of the Company and its Subsidiaries, by reason of the transfer of his employment among the Company and its Subsidiaries.

 

(b)                                 Change in Control.  The provisions of Section 21 of the Plan shall apply in the case of a Change in Control.

 

3.                                      Forfeiture of Restricted Share Units.

 

(a)                                 Forfeiture of Unvested Awards.  The Restricted Share Units that have not yet vested pursuant to Section 2 (and any right to unpaid Dividend Equivalents under Section 6 with respect to the Restricted Share Units), shall be forfeited automatically without further action or notice if the Grantee ceases to be employed by the Company or a Subsidiary prior to a Vesting Date for any reason.

 

(b)                                 Detrimental Activity.  The Restricted Share Units shall be subject to the provisions of Section 20 of the Plan, including those related to Detrimental Activity (as defined in the Plan).  This Section 3(b) shall survive and continue in full force in accordance with its terms and the terms of the Plan notwithstanding any termination of the Grantee’s employment or the payment of the Restricted Share Units as provided herein.

 

4.                                      Transferability.  The Restricted Share Units may not be transferred, assigned, pledged or hypothecated in any manner, or be subject to execution, attachment or similar process, by operation of law or otherwise, unless otherwise provided under the Plan. Any purported transfer or encumbrance in violation of the provisions of this Section 4 shall be void, and the other party to any such purported transaction shall not obtain any rights to or interest in such Restricted Share Units.

 

5.                                      Dividend, Voting and Other Rights.  The Grantee shall not possess any incidents of ownership (including, without limitation, dividend and voting rights) in the Shares underlying the Restricted Share Units until such Shares have been delivered to the Grantee in accordance with Section 2 hereof. The obligations of the Company under this Agreement will be merely that of an unfunded and unsecured promise of the Company to deliver Shares in the future, and the rights of the Grantee will be no greater than that of an unsecured general creditor. No assets of the Company will be held or set aside as security for the obligations of the Company under this Agreement.

 

6.                                      Payment of Dividend Equivalents.  Upon payment of a vested Restricted Share Unit, the Grantee shall be entitled to a cash payment (without interest) equal to the aggregate cash dividends declared and payable with respect to one Share for each record date that occurs during the period beginning on the Date of Grant and ending on the date the vested Restricted Share Unit is paid (the “Dividend Equivalent”).  The Dividend Equivalents shall be forfeited to the extent that the underlying Restricted Share Unit is forfeited and shall be paid to the Grantee, if at all, at the same time that the related vested Restricted Share Unit is paid to the Grantee in accordance with Section 2.

 

7.                                      No Employment Contract.  Nothing contained in this Agreement shall confer upon the Grantee any right with respect to continuance of employment by the Company and its

 

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Subsidiaries, nor limit or affect in any manner the right of the Company and its Subsidiaries to terminate the employment or adjust the compensation of the Grantee, in each case with or without Cause.

 

8.                                      Relation to Other Benefits.  Any economic or other benefit to the Grantee under this Agreement or the Plan shall not be taken into account in determining any benefits to which the Grantee may be entitled under any profit-sharing, retirement or other benefit or compensation plan maintained by the Company or a Subsidiary and shall not affect the amount of any life insurance coverage available to any beneficiary under any life insurance plan covering employees of the Company or a Subsidiary.

 

9.                                      Taxes and Withholding.  The Grantee is responsible for any federal, state, local or other taxes with respect to the Restricted Share Units and the Dividend Equivalents.  The Company does not guarantee any particular tax treatment or results in connection with the grant or vesting of the Restricted Share Units, the delivery of Shares or the payment of Dividend Equivalents.  To the extent the Company or any Subsidiary is required to withhold any federal, state, local, foreign or other taxes in connection with the delivery of Shares under this Agreement, then, except as otherwise provided below, the Company or Subsidiary (as applicable) shall retain a number of Shares otherwise deliverable hereunder with a value equal to the required withholding (based on the Fair Market Value of the Shares on the date of delivery); provided that in no event shall the value of the Shares retained exceed the minimum amount of taxes required to be withheld or such other amount that will not result in a negative accounting impact. Notwithstanding the preceding sentence, the Grantee may elect, on a form provided by the Company and subject to any terms and conditions imposed by the Company, to pay or provide for payment of the required tax withholding.  If the Company or any Subsidiary is required to withhold any federal, state, local or other taxes with respect to Dividend Equivalents, then the Company or Subsidiary (as applicable) shall have the right in its sole discretion to reduce the cash payment related to the Dividend Equivalent by the applicable tax withholding.

 

10.                               Adjustments.  The number and kind of shares of stock deliverable pursuant to the Restricted Share Units are subject to adjustment as provided in Section 16 of the Plan.

 

11.                               Compliance with Law.  The Company shall make reasonable efforts to comply with all applicable federal and state securities laws and listing requirements with respect to the Restricted Share Units; provided that, notwithstanding any other provision of this Agreement, and only to the extent permitted under Section 409A of the Code, the Company shall not be obligated to deliver any Shares pursuant to this Agreement if the delivery thereof would result in a violation of any such law or listing requirement.

 

12.                               Section 409A of the Code.  It is intended that the Restricted Share Units and any Dividend Equivalents provided pursuant to this Agreement shall be exempt from, or comply with, the requirements of Section 409A of the Code, and this Agreement shall be interpreted, administered and governed in accordance with such intent.  In particular, it is intended that the Restricted Share Units and any Dividend Equivalents shall be exempt from Section 409A of the Code, to the maximum extent possible, pursuant to the “short-term deferral” exception thereto.

 

B-3

 

13.                               Amendments.  Subject to the terms of the Plan, the Committee may modify this Agreement upon written notice to the Grantee. Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto.  Notwithstanding the foregoing, no amendment of the Plan or this Agreement shall adversely affect in a material way the rights of the Grantee under this Agreement without the Grantee’s consent unless the Committee determines, in good faith, that such amendment is required for the Agreement to either be exempt from the application of, or comply with, the requirements of Section 409A of the Code, or as otherwise may be provided in the Plan.

 

14.                               Severability.  In the event that one or more of the provisions of this Agreement shall be invalidated for any reason by a court of competent jurisdiction, any provision so invalidated shall be deemed to be separable from the other provisions hereof, and the remaining provisions hereof shall continue to be valid and fully enforceable.

 

15.                               Relation to Plan.  This Agreement is subject to the terms and conditions of the Plan. This Agreement and the Plan contain the entire agreement and understanding of the parties with respect to the subject matter contained in this Agreement, and supersede all prior written or oral communications, representations and negotiations in respect thereto. In the event of any inconsistency between the provisions of this Agreement and the Plan, the Plan shall govern.  The Committee acting pursuant to the Plan, as constituted from time to time, shall, except as expressly provided otherwise herein, have the right to determine any questions that arise in connection with the grant of the Restricted Share Units.

 

16.                               Successors and Assigns.  Without limiting Section 4, the provisions of this Agreement shall inure to the benefit of, and be binding upon, the successors, administrators, heirs, legal representatives and assigns of the Grantee, and the successors and assigns of the Company.

 

17.                               Governing Law.  The interpretation, performance, and enforcement of this Agreement shall be governed by the laws of the State of Delaware, without giving effect to the principles of conflict of laws thereof.

 

18.                               Use of Grantee’s Information.  Information about the Grantee and the Grantee’s participation in the Plan may be collected, recorded and held, used and disclosed for any purpose related to the administration of the Plan. The Grantee understands that such processing of this information may need to be carried out by the Company and its Subsidiaries and by third-party administrators whether such persons are located within the Grantee’s country or elsewhere, including the United States of America. The Grantee consents to the processing of information relating to the Grantee and the Grantee’s participation in the Plan in any one or more of the ways referred to above.

 

19.                               Electronic Delivery.  The Grantee hereby consents and agrees to electronic delivery of any documents that the Company may elect to deliver (including, but not limited to, prospectuses, prospectus supplements, grant or award notifications and agreements, account statements, annual and quarterly reports, and all other forms of communications) in connection with this and any other award made or offered under the Plan. The Grantee understands that, unless earlier revoked by the Grantee by giving written notice to the VP of Human Resources of

 

B-4

 

the Company, this consent shall be effective for the duration of the Agreement. The Grantee also understands that he or she shall have the right at any time to request that the Company deliver written copies of any and all materials referred to above at no charge. The Grantee hereby consents to any and all procedures the Company has established or may establish for an electronic signature system for delivery and acceptance of any such documents that the Company may elect to deliver, and agrees that his or her electronic signature is the same as, and shall have the same force and effect as, his or her manual signature. The Grantee consents and agrees that any such procedures and delivery may be effected by a third party engaged by the Company to provide administrative services related to the Plan.

 

20.                               No Fractional Shares.   Fractional Shares or units will be subject to rounding conventions adopted by the Company from time to time; provided that in no event will the total shares issued exceed the total units granted under this award.

 

[Signature Page Follows]

 

B-5

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Date of Grant.

 

	
 
    	
 
    	
GLOBAL POWER EQUIPMENT   GROUP INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name: Michael E.   Rescoe
    
	
 
    	
 
    	
Title:   Chairman of the Compensation Committee of   the Board of Directors
    

 

By executing this Agreement, you acknowledge that a copy of the Plan, Plan Summary and Prospectus, and the Company’s most recent Annual Report and Proxy Statement (the “Prospectus Information”) either have been received by you or are available for viewing on the Company’s internet site at www.globalpower.com, and you consent to receiving this Prospectus Information electronically, or, in the alternative, agree to contact Keri Jolly at 214-574-2733, to request a paper copy of the Prospectus Information at no charge.

 

	
 
    	
GRANTEE
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name: Terence J.   Cryan
    

 

B-6

 

EXHIBIT C
  GENERAL RELEASE

 

This General Release (this “Release”) is made and entered into as of this [·] day of [·], 20[·], by and between Global Power Equipment Group Inc. (the “Company”) and Terence J. Cryan (“Executive”).

 

1.                                      Employment Status. Executive’s employment with the Company and its affiliates terminated effective as of [·], 20[·] (the “Separation Date”).

 

2.                                      Payments and Benefits.  Upon the effectiveness of the terms set forth herein, the Company shall provide Executive with the benefits set forth in Sections 5(a)(ii), (iii) and (iv) of the Employment Agreement between Executive and the Company dated as of June [·], 2015 (the “Employment Agreement”), upon the terms, and subject to the conditions, of the Employment Agreement.

 

3.                                      No Liability. This Release does not constitute an admission by the Company or its affiliates or their respective officers, directors, partners, agents, or employees, or by Executive, of any unlawful acts or of any violation of federal, state or local laws.

 

4.                                      Release.  In consideration of the payments and benefits set forth in Section 2 of this Release, Executive for himself, his heirs, administrators, representatives, executors, successors and assigns (collectively, “Releasors”) does hereby irrevocably and unconditionally release, acquit and forever discharge the Company, its respective affiliates and their respective successors and assigns (the “Company Group”) and each of its officers, directors, partners, agents, and former and current employees, including without limitation all persons acting by, through, under or in concert with any of them (collectively, “Releasees”), and each of them, from any and all claims, demands, actions, causes of action, costs, attorney fees, and all liability whatsoever, whether known or unknown, fixed or contingent, which Executive has, had, or may ever have against the Releasees relating to or arising out of Executive’s employment or separation from employment with the Company Group, from the beginning of time and up to and including the date Executive executes this Release. This Release includes, without limitation: (a) law or equity claims; (b) contract (express or implied) or tort claims; (c) claims for wrongful discharge, retaliatory discharge, whistle blowing, libel, slander, defamation, unpaid compensation, intentional infliction of emotional distress, fraud, public policy contract or tort, and implied covenant of good faith and fair dealing; (d) claims under or associated with any of the Company Group’s incentive compensation plans or arrangements; (e) claims arising under any federal, state, or local laws of any jurisdiction that prohibit age, sex, race, national origin, color, disability, religion, veteran, military status, sexual orientation, or any other form of discrimination, harassment, or retaliation (including without limitation under the Age Discrimination in Employment Act of 1967 as amended by the Older Workers Benefit Protection Act (“ADEA”), Title VII of the Civil Rights Act of 1964 as amended by the Civil Rights Act of 1991, the Equal Pay Act of 1963, and the Americans with Disabilities Act of 1990, the Rehabilitation Act, the Family and Medical Leave Act, the Sarbanes-Oxley Act, the Employee Polygraph Protection Act, the Uniformed Services Employment and Reemployment Rights Act of 1994, the Genetic Information Nondiscrimination Act of 2008 (“GINA”), the Fair Labor Standards Act (“FLSA”), the Lilly Ledbetter Fair Pay Act or any other foreign, federal, state or

 

C-1

 

local law or judicial decision); (f) claims arising under the Employee Retirement Income Security Act; and (g) any other statutory or common law claims related to Executive’s employment with the Company Group or the separation of Executive’s employment with the Company Group; provided, however, that nothing herein shall release the Company Group from (i) any obligation under the Employment Agreement; (ii) any obligation to provide benefit entitlements under any Company benefit or welfare plan that were vested as of the Separation Date; and (iii) from any rights or claims that relate to events or circumstances that occur after the date that the Executive executes this Release.

 

In addition, nothing in this Release is intended to interfere with Executive’s right to file a charge with the Equal Employment Opportunity Commission or any state or local human rights commission in connection with any claim Executive believes he may have against the Releasees.  However, by executing this Release, Executive hereby waives the right to recover in any proceeding that Executive may bring before the Equal Employment Opportunity Commission or any state human rights commission or in any proceeding brought by the Equal Employment Opportunity Commission or any state human rights commission on Executive’s behalf.

 

5.                                      Bar.  Executive acknowledges and agrees that if he should hereafter make any claim or demand or commence or threaten to commence any action, claim or proceeding against the Releasees with respect to any cause, matter or thing which is the subject of the release under Section 4 of this Release, this Release may be raised as a complete bar to any such action, claim or proceeding, and the applicable Releasee may recover from Executive all costs incurred in connection with such action, claim or proceeding, including attorneys’ fees, along with the benefits set forth in Section 2 of the Release.

 

6.                                      Governing Law.  This Release shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to conflicts of laws principles.

 

7.                                      Acknowledgment. Executive has read this Release, understands it, and voluntarily accepts its terms, and Executive acknowledges that he has been advised by the Company to seek the advice of legal counsel (at Executive’s cost) before entering into this Release. Executive acknowledges that he was given a period of 21 calendar days within which to consider and execute this Release, and to the extent that he executes this Release before the expiration of the 21-day period, he does so knowingly and voluntarily and only after consulting his attorney. Executive acknowledges and agrees that the promises made by the Company Group hereunder represent substantial value over and above that to which Executive would otherwise be entitled.  Executive acknowledges and reconfirms the promises in Sections 8, 9, 10, 11 and 12 of the Employment Agreement.

 

8.                                      Revocation. Executive has a period of 7 calendar days following the execution of this Release during which Executive may revoke this Release by delivering written notice to the Company pursuant to Section 14 of the Employment Agreement, and this Release shall not become effective or enforceable until such revocation period has expired. Executive understands that if he revokes this Release, it will be null and void in its entirety, and he will not be entitled to any payments or benefits provided in this Release, including without limitation under Section 2 of the Release.

 

C-2

 

9.                                      Miscellaneous. This Release is the complete understanding between Executive and the Company Group in respect of the subject matter of this Release and supersedes all prior agreements relating to Executive’s employment with the Company Group, except as specifically excluded by this Release. Executive has not relied upon any representations, promises or agreements of any kind except those set forth herein in signing this Release. In the event that any provision of this Release should be held to be invalid or unenforceable, each and all of the other provisions of this Release shall remain in full force and effect. If any provision of this Release is found to be invalid or unenforceable, such provision shall be modified as necessary to permit this Release to be upheld and enforced to the maximum extent permitted by law. Executive agrees to execute such other documents and take such further actions as reasonably may be required by the Company Group to carry out the provisions of this Release.

 

10.                               Counterparts. This Release may be executed by the parties hereto in counterparts, which taken together shall be deemed one original.

 

	
GLOBAL   POWER EQUIPMENT 
    	
 
    	
EXECUTIVE
    
	
GROUP   INC.
    	
 
    	
 
    
	
 
    	
 
    	
[Form of release – Do not sign]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
Terence   J. Cryan
    
	
Its:
    	
 
    	
 
    

 

C-3EX-10.1

 Exhibit 10.1 
  

					
	

		 FIRST REPUBLIC BANK

It’s a privilege to serve you®
		

 LOAN AGREEMENT 

(Line of Credit) 
 This
Loan Agreement (Line of Credit) (the “Agreement”), dated June 27, 2013, is executed by and between Evercore Partners Services East L.L.C. (“Borrower”), and First Republic Bank (the “Lender”),
with reference to the following facts: 
 A. Borrower has requested a line of credit loan in the original principal amount of
Twenty-Five Million and no/100 Dollars ($25,000,000.00) (referred to herein as the “Loan” or the “Line of Credit Loan”) from the Lender for the purposes set forth in this Agreement. 

B. Borrower and the Lender desire to enter into this Agreement to establish certain terms and conditions relating to the Line of Credit
Loan. 
 THEREFORE, for valuable consideration, Borrower and the Lender agree as follows: 

ARTICLE 1 

DEFINITIONS 
 For
purposes of this Agreement, the following terms shall have the following definitions: 
 1.1 Attorneys’ Fees.  
All reasonable and documented attorneys’ fees and costs incurred by Lender in connection with the negotiation and execution of the Loan Documents; the exercise of any or all of Lender’s rights and remedies under this Agreement and the
other Loan Documents; the enforcement of any of all Obligations, whether or not any legal proceedings are instituted by Lender; or the defense of any action or proceeding by Borrower or any other Person relating to the Line of Credit Loan. Without
limiting the generality of the immediately preceding sentence, such Attorneys’ Fees shall include all attorneys’ fees and costs incurred by Lender in connection with any federal or state bankruptcy, insolvency, reorganization, or other
similar proceeding by or against any Loan Party which in any way affects Lender’s exercise of its rights and remedies under the Loan Documents. 

1.2 Borrower’s Application.   The written application, if any, and all financial statements and other information
submitted by Borrower to the Lender in connection with the Lender’s approval of the Line of Credit Loan. 
 1.3 Business
Day.   Any day other than a day on which commercial banks in California are authorized or required by law to close. 

1.4 Collateral.   As defined in the Security Agreement. 

1.5 Commitment.   An amount equal to the principal face amount of the Note, as amended from time to time. 

1.6 Default.   Any event which, with notice or passage of time or both, would constitute an Event of Default. 

1.7 Event of Default.   As defined in Section 4.1 of this Agreement. 

1.8 Governmental Authorities.   (a) the United States; (b) any state, county, city or other political
subdivision in which any of the Collateral is located; (c) all other governmental or quasi-governmental authorities, boards, bureaus, agencies, commissions, departments, administrative tribunals, instrumentalities and authorities; and
(d) all judicial authorities having or exercising jurisdiction over Borrower or the Collateral. The term “Governmental Authority” means any one of the Governmental Authorities. 

1.9 Governmental Permits.   All permits, approvals, licenses, and authorizations now or hereafter issued by any
Governmental Authorities for or in connection with the conduct of Borrower’s business or the ownership or use by Borrower of the Collateral or any of its other assets. 

1.10 Governmental Requirements.   All existing and future laws, ordinances, rules, regulations, orders, and
requirements of all Governmental Authorities applicable to Borrower, the Collateral or any of Borrower’s other assets. 

 1.11 Guaranties.   The Continuing Guaranties and all other guaranty
agreements of any kind, if any, now or hereafter executed by the Guarantors, and all extensions, renewals, modifications and replacements of any or all of such documents. 

1.12 Guarantors.   Collectively, the Person or Persons, if any, now or hereafter guaranteeing payment of the Note or
payment or performance of any or all of the other Obligations, including in each case the Persons identified as guarantors in the Loan Schedule. 

1.13 Lender Expenses.   All reasonable and documented costs and expenses incurred by Lender in connection with:
(i) this Agreement or other Credit Documents; (ii) the transactions contemplated hereby or thereby; (iii) the enforcement of any rights hereunder or thereunder; (iv) the recordation or filing of any documents;
(v) Lender’s Attorneys’ Fees; (vi) the creation, perfection or enforcement of the lien on any item of Collateral; and (vii) any expenses incurred in any proceedings in the U.S. Bankruptcy Courts in connection with any of the
foregoing. 
 1.14 Line of Credit Advance.   Each advance of principal under the Note made by the Lender to or for
the benefit of Borrower pursuant to a Request for Advance or otherwise. 
 1.15 Loan Closing.   The first date on
which all or any part of the proceeds of the Line of Credit Loan are initially disbursed by the Lender to or for the benefit of Borrower. 

1.16 Loan Documents.   The Note, the Security Documents, this Agreement, the Guaranties, the Third Party Pledge
Agreement, all certified resolutions or other certificates delivered in connection with the foregoing and all other documents identified as a “Loan Document” now or hereafter executed by any Loan Party in connection with the Line of Credit
Loan, and all extensions, renewals, modifications and replacements of any or all of such documents. 
 1.17 Loan Fee.  
The loan fees specified in Section 4 of the Loan Schedule which shall be payable by Borrower to the Lender prior to or on the Loan Closing. 

1.18 Loan Party.   The Borrower, the Pledgor and each Guarantor. 

1.19 Loan Schedule.   The Loan Schedule attached to this Agreement as Exhibit A. 

1.20 Maturity Date.   The stated maturity date of the Note. 

1.21 Note.  (a) the promissory note dated the same date as this Agreement executed by Borrower evidencing the
Line of Credit Loan and all extensions, renewals, modifications and replacements of such promissory note; and/or (b) any additional note or notes now or hereafter executed by Borrower in favor of the Lender which specifically recite that they
arise out of this Agreement, and all extensions, renewals, modifications and replacements of any or all of such note or notes. 
 1.22
Obligations.   All debts, obligations, and liabilities of Borrower to the Lender currently existing or hereafter made, incurred or created, whether voluntary or involuntary, and however arising or evidenced, whether direct or
acquired by the Lender by assignment or succession, whether due or not due, absolute or contingent, liquidated or unliquidated, determined or undetermined, whether under this Agreement, the Note, any of the other Loan Documents, or otherwise, and
whether Borrower may be liable individually or jointly, or whether recovery upon such debt may be or become barred by any statute of limitations or otherwise unenforceable, including all attorneys’ fees and costs now or hereafter payable by
Borrower to the Lender under the Loan Documents or in connection with the collection and enforcement of such debts, obligations and liabilities. Notwithstanding anything to the contrary contained in this Agreement, this Agreement shall not secure
and the term “Obligations” shall not include, any debts that are or may hereafter constitute “consumer credit” which is subject to the disclosure requirements of the federal Truth-In Lending Act (15 U.S.C. Section 1601,
et seq.) or any similar state law in effect from time to time, unless the Lender and Borrower shall otherwise agree in a separate written agreement. 

1.23 Person.   Any natural person or any entity, including any corporation, partnership, joint venture, trust, limited
liability company, unincorporated organization, trustee, or Governmental Authority. 
 1.24 Pledgor.   Evercore
Group L.L.C. and any other Person which may from time to time execute a Third Party Pledge Agreement. 
 1.25 Request for
Advance.   A written or telephonic request (or other form of request acceptable to the Lender) for an advance of principal under the Note submitted by Borrower to the Lender pursuant to this Agreement. 

1.26 Security Documents.  Collectively, the Security Agreement dated on or about the date hereof (the “Security
Agreement”) between Borrower and Lender and any other personal security agreements and pledge agreements now or hereafter executed by (a) Borrower pursuant to which Borrower grants a security interest to the Lender in any property or asset
of any kind to secure any or all of the Obligations, and all extensions, renewals, modifications and replacements of any or all of such documents, and/or (b) any third Person (including Pledgor) pursuant to which such third Person grants a
security interest to the Lender in any property or asset of any kind to secure any or all of the Obligations, and all extensions, renewals, modifications and replacements of any or all of such documents (each such agreement under this clause
(b) being a “Third Party Pledge Agreement”). 

  
 2 

 1.27 Other Terms.  All accounting terms with an initial capital letter
that are used but not defined in this Agreement shall have the respective meanings given to such terms in accordance with generally accepted accounting principles, consistently applied. 

ARTICLE 2 

DISBURSEMENT OF LOAN PROCEEDS 

2.1 Line of Credit.   The Lender agrees, on the terms and conditions contained in this Agreement and the other Loan
Documents, to make a Line of Credit Loan to Borrower during the period from the date of the Closing up to but not including the Maturity Date in the aggregate principal amount not to exceed at any time the lesser of (a) outstanding the amount
of the Commitment or (b) the Borrowing Base. 
 2.2 Use of Loan Proceeds.   All proceeds of the Line of Credit
Loan received by Borrower shall be used by Borrower solely for payment of those costs, charges, and other items shown in the Loan Disbursement Instructions executed by Borrower in connection with the Loan and for working capital or general corporate
purposes. The Lender shall have no obligation to monitor or verify the use or application of any proceeds of Line of Credit Loan disbursed by the Lender. Borrower shall not, directly or indirectly, use all or any part of the Line of Credit Loan
proceeds for the purpose of purchasing or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (the “Board of Governors”) or to extend credit to any Person for the purpose of
purchasing or carrying any such margin stock or for any purpose which violates or is inconsistent with Regulation X of the Board of Governors, unless such use has been expressly approved in writing by the Lender, in its discretion. 

2.3 Initial Loan Fee.   Concurrently with or prior to the date of the Loan Closing, Borrower shall pay to the Lender
the Loan Fee specified in the Loan Schedule. The entire amount of the Loan Fee shall be deemed to be fully earned by the Lender as of the date of the Loan Closing, and no part of the Loan Fee shall be refundable to Borrower, whether or not the
principal balance of the Loan is prepaid or the Commitment is terminated prior to the Maturity Date. 
 2.4 Requests for Advances
Under Line of Credit.   Each Request for Advance under the Line of Credit Loan shall indicate the proposed date for the Line of Credit Advance requested by Borrower in the Request for Advance (which date shall be no earlier than
the next Business Day and is referred to as the “Advance Date”). Each Request for Advance shall be reasonably satisfactory to the Lender in form and substance. Each Advance Date shall be a Business Day. Provided that no Default or Event of
Default has occurred and is continuing and that all representations and warranties in the Loan Documents are true and correct in all material respects on such date and that on such date Borrower has not failed to pay any obligations under any other
agreement with Lender requiring the payment of money to Lender, not later than 4 P.M. Pacific Time on the Advance Date, the Lender shall make the Line of Credit Advance available to Borrower in immediately available funds by deposit or credit
to an account in Borrower’s name established or to be established at one of the Lender’s offices, by check payable directly to Borrower or to a payee designated by Borrower, or by such other method as may be designated by the Lender, in
each case as determined by the Lender. 
 2.5 Reliance by Lender.   The Lender may conclusively presume that all
requests, statements, information, certifications, and representations, whether written or oral, submitted or made by Borrower or any of its agents to the Lender in connection with the Line of Credit Loan are true and correct, and the Lender shall
be entitled to rely thereon, without investigation or inquiry of any kind by the Lender, in disbursing the Line of Credit Loan proceeds and taking or refraining from taking any other action in connection with the Line of Credit Loan. Without
limiting the generality of this Section, Borrower acknowledges and agrees that (a) it is in the best interest of Borrower that the Lender respond to and be entitled to rely upon Requests for Advances that are given by Borrower in writing, by
telephone, or by other telecommunication method acceptable to the Lender without the Lender having to inquire into the actual authority of the Person making such request and purporting to act on behalf of Borrower; (b) therefore, the Lender may
conclusively rely on any and all Requests for Advances (whether made in writing, by telephone, or by other telecommunication method) made by (i) any Person who purports to be one of the agents of Borrower who has been authorized to act for
Borrower in any resolution or other form of authorization of any kind delivered to the Lender (a “Borrower Authorization”); and (ii) any other Person who the Lender in good faith believes to be authorized to act for Borrower
(notwithstanding the fact that such other Person is not identified in any Borrower Authorization); and (c) Borrower assumes all risks arising out of any lack of actual authority by any Person submitting any form of Request for Advance (whether
made in writing, by telephone, or by other telecommunication method) to the Lender and the Lender’s reliance on such Request for Advance (except to the extent such reliance results from Lender’s gross negligence, bad faith or willful
misconduct). 

  
 3 

 ARTICLE 3 

BORROWER’S COVENANTS 

3.1 Existence of Borrower.   Borrower shall maintain its existence in good standing under the laws of the state in
which it is organized and maintain its qualification as a foreign entity in good standing in each jurisdiction in which the nature of its business requires qualification as a foreign entity (except for such jurisdictions where the failure to so
qualify would not reasonably be expected to have a material adverse effect on Borrower’s business or the ability of Borrower to perform its obligations under the Loan Documents). 

3.2 Books and Records; Inspections by Lender.   Borrower shall keep and maintain books and records relating to its
business and the Collateral that are complete and accurate in all material respects. The Lender shall have access to such books and records at all reasonable times upon not less than five (5) Business Days prior written notice to Borrower for
the purposes of examination, inspection, verification, copying and for any other reasonable purpose relating to the Loan Documents. Borrower authorizes the Lender, at its option but without any obligation of any kind to do so, to discuss the
affairs, finances and accounts of Borrower and the Collateral with any of its officers and directors and, after an Event of Default has occurred and is continuing, with Borrower’s independent accountants and auditors, and Borrower authorizes
all accountants and auditors employed or retained by Borrower to respond to and answer all requests from the Lender for financial and other information regarding Borrower. Borrower agrees not to assert the benefit of any accountant-client privilege
precluding or limiting the disclosure or delivery of any of its books and records to the Lender (provided that Borrower will not be required to disclose, permit the inspection, examination or making copies or abstracts of, or discussion of, any
documents, information or other matter that (a) constitutes non-financial trade secrets or non-financial proprietary information, (b) in respect of which disclosure to the Lender (or their respective representatives or contractors) is
prohibited by law or any binding agreement to which the Borrower or its affiliates is a party, or (c) is subject to attorney-client privilege or constitutes attorney work product). 

3.3 Reports.   Without limiting any of the other terms of the Loan Documents, from time to time within ten
(10) Business Days (or such later time as Lender may reasonably agree) after the Lender’s written reasonable request to Borrower, Borrower shall deliver to the Lender such reports and information available to Borrower concerning the
business, financial condition and affairs of Borrower or the Collateral as the Lender may reasonably request. 
 3.4 Payment of
Obligations; Compliance with Financial Covenants.   Borrower shall pay all of its indebtedness under the Note and pay and perform all of its other Obligations under the Loan Documents as and when the same become due. Without
limiting the generality of the immediately preceding sentence, Borrower shall comply with all of the financial covenants contained in Section 1 of Exhibit B (the “Financial Covenants”) and the other terms set forth in the Exhibit B.

 3.5 Notice of Material Adverse Changes.   Borrower shall immediately notify the Lender in writing of (a) any
material adverse change in the financial condition of any Loan Party; (b) any material adverse change in (including any material decline in the value of) the Collateral; and (c) any claim, proceeding, litigation or investigation in the
future threatened or instituted by or against Borrower involving any claim or claims which, individually or in the aggregate, may cause or result in a material adverse change in the financial condition or business of Borrower or any material
impairment in the ability of Borrower to carry on its business in substantially the same manner as it is now being conducted. 
 3.6
Further Assurances.   Upon the Lender’s request, Borrower shall execute and deliver to the Lender such further documents and agreements, in form and substance reasonably satisfactory to the Lender, as the Lender may
reasonably require to grant, perfect, preserve or protect the validity of the security interests created or intended to be created by the Security Documents. 

3.7 Claims.   Subject to Section 3.9, Borrower shall pay when due all claims which, if unpaid, might become a
lien or charge on any or all of the properties or assets of Borrower. 
 3.8 Taxes.   Subject to Section 3.9,
Borrower shall pay when due all foreign, federal, state and local taxes, assessments, and governmental charges now or hereafter levied upon or against Borrower or any of its properties or assets (including the Collateral), including all income,
franchise, personal property, real property, excise, withholding, sales and use taxes. 
 3.9 Contest.   Borrower
shall not be in default hereunder for failure to pay any tax, assessment, charge or claim referred to in Section 3.7 or 3.8 above (a) to the extent such failure would not reasonably be expected to have a material adverse effect on the
ability of Borrower to perform its obligations under the Loan Documents or on the business of Borrower, or (b) to the extent Borrower is contesting the payment of such tax, assessment, charge or claim in good faith by appropriate proceedings or
has set aside on its books adequate reserves with respect thereto in accordance with GAAP. 
 3.10 Pension Plans.  
Borrower shall pay all amounts necessary to fund any future employee benefit plans (if any) in accordance with their terms, and Borrower shall not permit the occurrence of any event with respect to any such plan which would result in any
liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or 

  
 4 

 
any other Governmental Authority, except where failure to make such payments, or where permitting such occurrence, would not reasonably be expected to have a material adverse effect on the
ability of Borrower to perform its obligations under the Loan Documents or on the business of Borrower. 
 3.11
Insurance.   Borrower shall maintain insurance in at least such amounts and against at least such risks as Borrower believes (in the good faith judgment of management of Borrower) is reasonable and prudent in light of the size
and nature of its business and the availability of insurance on a cost-effective basis. Upon the Lender’s request, Borrower shall provide the Lender with evidence satisfactory to the Lender regarding the maintenance of the insurance required by
this Section, including proof of premium payments and copies of insurance policies, certificates of insurance, and endorsements. 
 3.12
Maintenance of Properties.   Borrower shall maintain its properties in good condition and repair, ordinary wear and tear excepted, except where the failure to do so would not reasonably be expected to have a material adverse
effect on the ability of Borrower to perform its obligations under the Loan Documents or on the business of Borrower. 
 3.13
Licenses.  Borrower shall maintain all Governmental Permits necessary for the ownership of its properties and the conduct of its businesses, except where the failure to do so would not reasonably be expected to have a material
adverse effect on the Collateral or on the ability of Borrower to perform its obligations under the Loan Documents or on the business of Borrower. 

3.14 Compliance with Applicable Laws.   Borrower shall at all times comply with and keep in effect all Governmental
Permits relating to Borrower, the Collateral, and Borrower’s other assets, except where the failure to do so would not reasonably be expected to have a material adverse effect on the ability of Borrower to perform its obligations under the Loan
Documents or on the business of Borrower. Borrower shall at all times comply with, and shall cause the Collateral to comply with (a) all Governmental Requirements, including all hazardous substance laws; (b) all requirements and orders of
all judicial authorities which have jurisdiction over Borrower or the Collateral; and (c) all covenants, conditions, restrictions and other documents relating to Borrower or the Collateral, except in the case of each of the foregoing clauses
(a), (b) and (c), where the failure to do so would not reasonably be expected to have a material adverse effect on the ability of Borrower to perform its obligations under the Loan Documents or on the business of Borrower. 

3.15 Place of Business; Borrower’s Name.   Borrower shall promptly give the Lender written notice of any change
in the location of Borrower’s chief executive office except that Borrower shall obtain Lender’s prior written consent (such consent not to be unreasonably withheld) thereto if the change in locations is to a place outside of the United
States. Borrower shall give the Lender prompt written notice of any change of its name or doing business under any other name. 
 3.16
Sale; Merger.   Borrower shall not sell or transfer all or any substantial part of its assets, merge with or in to any other Person, or change its jurisdiction of organization in each case without at least 5 days’ prior
written notice to Lender; provided that Borrower shall not be required to give prior notice to the extent doing so would violate any Governmental Requirements which cannot be satisfied by the execution of a confidentiality agreement by Lender; and
provided further, that the provisions of this Section 3.16 shall not permit Borrower to transfer any Collateral in violation of any provisions of the Security Documents. 

3.17 Other Financial Information.   Borrower shall deliver to Lender, or cause to be delivered to Lender, the
financial information regarding the Loan Parties set forth on Exhibit B and such other financial information regarding the Loan Parties as Lender may reasonably request from time to time. 

3.18 Collateral.   Borrower at all times will have (a) legal and equitable title to the Collateral, free of all
liens and other interests, except Permitted Liens, and (b) the right to grant the security interest in the Collateral. The grant by Borrower of the security interest in the Collateral will at all times not violate any Governmental Requirements
applicable to Borrower or any agreement to which Borrower is a party. 
 ARTICLE 4 

DEFAULT AND REMEDIES 

4.1 Events of Default.   The Lender, at its option, may declare Borrower to be in default under this Agreement and the
other Loan Documents upon the occurrence and during the continuation of any or all of the following events (the declaration of such a default by the Lender shall constitute an “Event of Default”): 

(a) Payment of Note and Other Monetary Obligations.   If Borrower fails to pay any of its indebtedness under the Note
or pay any of its other obligations under the Loan Documents, in each case withinh five (5) days after the date on which such indebtedness or monetary obligation is due; provided, however, that the five (5) day grace period contained in
this Section 4.1(a) shall not apply to Borrower’s obligation to pay the outstanding principal balance and all accrued and unpaid interest under the Note on the Maturity Date; 

(b) Failure to Comply with Financial Covenants, Permit Inspections, or to Perform Certain Non-Monetary Obligations Under Other Loan
Documents.   If (i) Borrower fails to comply with any or all of the Financial Covenants 

  
 5 

 
or the obligations under Section 2.3 of Exhibit B hereto; (ii) Borrower fails to permit any inspection the Collateral or any of Borrower’s books and records in accordance with
the terms of the Loan Documents and such failure is not cured within five (5) days after notice thereof is given to Borrower; or (iii) Borrower breaches any of its non-monetary obligations to the Lender under any of the Loan Documents,
which breach is not reasonably susceptible to being cured by Borrower; 
 (c) Performance of Non-Monetary Obligations
Under Other Loan Documents Which are Curable.   If (i) Borrower fails to perform any of its non-monetary obligations to the Lender (other than those set forth in Section 4.1(b) above) under any of the Loan Documents when due;
and (ii) if such non-monetary obligation is reasonably susceptible to being cured by Borrower, Borrower fails to diligently complete a cure of its breach of such non-monetary obligation as soon as reasonably practicable after written notice by
the Lender to Borrower setting forth such non-monetary breach, but in any event within thirty (30) days after such notice is given; provided, however, that the thirty (30) day cure period contained in this Section 4.1(c) shall not be
deemed to apply if Borrower commits more than two (2) such non-monetary breaches within any twelve (12) calendar month period. Without limiting any of the terms of this Section 4.1(c), the cure provision contained in this
Section 4.1(c) (the “Cure Provision”) shall not apply with respect to Borrower’s failure to comply with the Financial Covenants or Borrower’s breach of any material non-monetary obligation of Borrower that is not reasonably
susceptible to being cured by Borrower, including any transfer of the Collateral in violation of the terms of the Loan Documents. 
 (d)
Misrepresentation.   If any representation or warranty submitted or made by Borrower to the Lender in connection with the Line of Credit Loan is false or misleading in any material respect as of the date hereof; 

(e) Insolvency of Borrower.   If (i) a petition is filed by or against Borrower under the federal bankruptcy
laws or any other applicable federal or state bankruptcy, insolvency or similar law; (ii) a receiver, liquidator, trustee, custodian, sequestrator, or other similar official is appointed to take possession of Borrower, the Collateral, or any
material part of Borrower’s other assets, or Borrower consents to such appointment; (iii) Borrower makes a general assignment for the benefit of creditors; or (iv) Borrower takes any action in furtherance of any of the foregoing;
provided, however, that Borrower shall have sixty (60) days within which to cause any involuntary bankruptcy proceeding to be dismissed or the involuntary appointment of any receiver, liquidator, trustee, custodian, or sequestrator to be
discharged. The cure provision contained in this Section shall be in lieu of, and not in addition to, any and all other cure provisions contained in the Loan Documents; 

(f) Insolvency of Other Persons.   If any of the events specified in clauses (i) through (iv) of
Section 4.1(e) above occurs with respect to any other Loan Party, as if such Loan Party were the Borrower described therein; 
 (g)
Performance of Obligations to Third Persons. If any Loan Party fails to pay any of its indebtedness or to perform any of its obligations when due, in each case, under any document between such Loan Party and any other Person and such
failure to pay or perform entitles the holder thereof to accelerate such indebtedness, provided that such failure shall constitute a default hereunder only if the aggregate principal amount of the outstanding indebtedness exceeds $5,000,000.00; 

(h) Attachment.   If all or any material part of the Collateral or the other assets of any Loan Party are attached,
seized, subjected to a writ or levied upon by any court process and Borrower, such Loan Party fails to cause such attachment, seizure, writ or levy to be fully released or removed within sixty (60) days after the occurrence of such event. The
cure provision contained in this Section shall be in lieu of, and not in addition to, any and all other cure periods contained in the Loan Documents; 

(i) Injunctions.   If a court order is entered against any Loan Party enjoining the conduct of all or a material part
of such Person’s business, such Loan Party fails to cause such injunction to be fully stayed, dissolved or removed within sixty (60) days after such order is entered. The cure provision contained in this Section shall be in lieu of, and
not in addition to, any and all other cure periods contained in the Loan Documents; 
 (j) Dissolution.   The
dissolution, liquidation, or termination of existence of Loan Party; 
 (k) Transfers of Interests.   The sale or
transfer of an aggregate of more than twenty-five percent (25%) of the beneficial interests in Borrower (other than to any other Loan Party or any affiliate of any Loan Party) without the Lender’s prior written consent; 

(l) Impairment of Security Interest or Lender’s Rights.   If (i) the validity or priority of the
Lender’s security interest in the Collateral is impaired for any reason; or (ii) the value of the Collateral has deteriorated, declined or depreciated as a result of any intentional act or omission by a Loan Party; or 

(m) Default by Guarantors/Pledgor.   If any default occurs under any of the Guaranties or Third Party Pledge
Agreements and is not cured within any applicable cure period, if any Guarantor or Pledgor fails to pay any of its indebtedness or perform any of its obligations under any of the Guaranties or Third Party Pledge Agreements when due (after giving
effect to any applicable cure period), or if any Guarantor or Pledgor revokes, limits or terminates or attempts to revoke, limit or terminate any of the obligations of any Guarantor or Pledgor under any of the Guaranties or Third Party Pledge
Agreements; or 

  
 6 

 (n) Misrepresentation by Guarantors/Pledgor.   If any representation or
warranty submitted or made by any Loan Party to the Lender in connection with the Loan or any other extension of credit by the Lender to any Loan Party, now or in the future, is false or misleading in any material respect; 

(o) Material Adverse Change.   If there is a material adverse change in the financial condition of Borrower and its
affiliates, taken as a whole, after the date hereof and Lender gives Borrower written notice of the basis on which such determination has been made, and the Lender reasonably determines that such change materially impairs Borrower’s ability to
perform any or all of the Obligations. 
 4.2 Remedies.   Upon the Lender’s election to declare Borrower to be
in default under the Loan Documents pursuant to Section 4.1 above, Borrower shall be deemed to be in default under the Loan Documents, and the Lender shall have the right to do any or all of the following: 

(a) Acceleration.   The Lender shall have the right to declare any or all of the Obligations to be immediately due
and payable, including the entire principal amount and all accrued but unpaid interest under the Note, and notwithstanding the Maturity Date, such Obligations shall thereupon be immediately due and payable; 

(b) Remedies Under Other Loan Documents.   The Lender may exercise any or all rights and remedies which the Lender
may have under any or all of the Loan Documents and applicable law; 
 (c) Discontinuation of Disbursements.   The
Lender may discontinue or withhold any or all advances of the proceeds of Line of Credit Loan, and the Lender shall have no further obligation to make any Line of Credit Advance; and 

(d) Discontinuation of Other Extensions of Credit.   The Lender may discontinue advancing money or extending credit
to or for the benefit of Borrower in connection with any other document between the Lender and Borrower. 
 Notwithstanding the preceding
provisions of this Section 4.2, if an Event of Default described in Section 4.1(e) shall occur, then all of the Obligations under the Loan Documents shall, automatically and without any action of or notice by Lender, become immediately due
and payable and Lender’s commitment to lend under the Note and the other Loan Documents shall automatically terminate. 
 4.3
Transfer of Assets of Guarantor.   If Borrower or any Guarantor notifies Lender of the sale, lease abandonment or other disposition or transfer by any Guarantor of all or substantially all of its assets under
Section 13(b)(i) of the Continuing Guaranty or under any other Guaranties, then Lender in its discretion shall have the right, for a period of 30 days after receipt of such notice, to accelerate the Obligations under Section 4.2(a) hereof
and to exercise its rights and remedies under the Loan Documents. 
 ARTICLE 5 

WARRANTIES AND REPRESENTATIONS 

5.1 Borrower’s Warranties and Representations.   As a material inducement to the Lender’s extension of
credit to Borrower in connection with the Line of Credit Loan, Borrower warrants and represents to the Lender as follows: 
 (a)
Existence.   Borrower is duly organized, validly existing and in good standing under the laws of the state of Delaware, and Borrower is qualified to do business and is in good standing in New York and each other jurisdiction in
which the ownership of the Collateral or its other assets, or the conduct of its business, requires qualification as a foreign entity (except where the failure to so qualify would not reasonably be expected to have a material adverse effect on the
Collateral, the ability of Borrower to perform its obligations under the Loan Documents or on Borrower’s business). 
 (b)
Authority to Own Assets; Collateral.   Borrower has the full power and authority to own its assets and to transact the business in which it is now engaged. Borrower is the owner of all of the Collateral in which it has granted
to Lender a security interest and has the right to grant Lender the security interest in the Collateral. 
 (c) Authority to
Execute Loan Documents.   Borrower has the full power and authority to execute, deliver and perform its obligations under the Loan Documents and grant the security interests in the Collateral, and the execution, delivery and
performance of the Loan Documents and the consummation of the transactions contemplated thereby have been duly authorized by all requisite action on the part of Borrower. The Person or Persons signing the Loan Documents on behalf of Borrower are
duly authorized to execute the Loan Documents and all other documents necessary to consummate the Line of Credit Loan on behalf of Borrower. 

(d) Valid Obligations.  The Loan Documents are legal, valid and binding obligations of Borrower, each Guarantor and
Pledgor, respectively, enforceable in accordance with their terms (except as enforcement may be limited by equitable principles and by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to creditors’ rights generally).
The Security Agreement is effective to create a valid security interest in the Collateral. 

  
 7 

 (e) No Consents Required.   No consent of any other Person and no
consent, approval, authorization or other action by or filing with any Governmental Authority not previously obtained by Borrower is required in connection with the execution, delivery and performance of the Loan Documents by Borrower or the grant
by Borrower of the security interest in the Collateral, except for filings required by the Security Documents. 
 (f) Chief
Executive Office.   Borrower’s chief executive office as of the date hereof is located at the address set forth in Section 1.3 of Exhibit A. 

(g) Borrower’s Name.   Borrower has set forth above its full and correct name as of the date hereof, and as of
such date Borrower does not use any other names or tradenames, except for the tradenames disclosed in the Loan Schedule. 
 (h)
No Violations.   The execution, delivery and performance of the Loan Documents and compliance with their respective terms will not conflict with or result in a violation or breach of any of the terms or conditions of any
material document to which Borrower is a party or by which Borrower is bound or any order or judgment of any court or Governmental Authority binding on Borrower. 

(i) Organizational Documents.   Borrower’s execution, delivery and performance of the Loan Documents and
Borrower’s compliance with their respective terms (i) will not violate any Governmental Requirements applicable to Borrower; or (ii) Borrower’s Certificate of Formation or Limited Liability Company Agreement, of which Borrower
has furnished Lender accurate and complete copies. 
 (j) Tax Claims.   There are no claims or adjustments proposed
by any taxing authority for any of Borrower’s prior tax years which could result in additional taxes becoming due and payable by Borrower that would reasonably be expected to have a material adverse effect on the ability of Borrower to perform
its obligations under the Loan Documents or on the business of Borrower. Each Loan Party has filed all federal, state and local tax returns required to be filed under applicable Governmental Requirements and has paid all taxes, assessments, fees,
penalties, and other governmental charges that are due and payable in connection therewith, except (a) taxes that are being contested in good faith by appropriate proceedings and for which the Borrower has set aside on its books adequate
reserves or (b) to the extent that the failure to do so would not reasonably be expected to have a material adverse effect on the ability of Borrower to perform its obligations under the Loan Documents or on the business of Borrower. 

(k) Litigation.   To the best of Borrower’s knowledge, there are no actions, suits, proceedings or
investigations pending or threatened against or affecting any Loan Party in any court or before any other Governmental Authority which would reasonably be expected to have a material adverse effect on the Collateral, the ability of Borrower to
perform its obligations under the Loan Documents or on the business of Borrower. 
 (l) Margin Stock.   Borrower is
not engaged in the business of extending credit for the purpose of purchasing or carrying any “margin stock” (as defined in Regulation G of the Board of Governors of the Federal Reserve System), and no part of the proceeds of the Line of
Credit Loan shall be used to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing or carrying any margin stock, unless such use is approved in writing by the Lender or otherwise expressly contemplated by the
Loan Documents. 
 (m) Licenses and Governmental Requirements.   No Loan Party (i) is in violation in any
material respect of any Governmental Permits or Governmental Requirements (including all hazardous substance laws) to which it is subject; or (ii) has failed to obtain any Governmental Permits necessary for the ownership of its properties or
the conduct of its business. 
 (n) Validity of Collateral.   Each account receivable which is a part of the
Collateral is (or will be when arising) a valid obligation of the account debtor. 
 5.2 OFAC; Patriot Act Compliance. 

(a) Borrower is not a Person (i) whose property or interest in property is blocked or subject to blocking pursuant to
Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) to its knowledge, who engages
in any dealings or transactions prohibited by Section 2 of such executive order, or is otherwise associated with any such Person in any manner violative of such Section 2, or (iii) who is on the list of Specially Designated Nationals
and Blocked Persons or subject to the limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets Control regulation or executive order (“OFAC”). 

(b) Borrower is in compliance with the Patriot Act in all material respects. No proceeds of the Line of Credit Loan will be used,
directly or, to its knowledge, indirectly, for payments to any governmental official or employee, political party or its officials, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct
business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended. 

  
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 5.3 Borrower’s Warranties.   Borrower’s warranties and
representations set forth in Section 5.1 above shall be true and correct at the time of execution of this Agreement and as of the date of the Loan Closing, shall survive the closing of the Line of Credit Loan, and shall be true and correct in
all material respects as of the date on which such warranties and representations are given. For purposes of this Agreement and the other Loan Documents, the term “to the best of Borrower’s knowledge” shall be deemed to mean to the
best knowledge of Borrower after a commercially reasonable and diligent investigation, inspection and inquiry by Borrower. 
 ARTICLE 6

 MISCELLANEOUS 

6.1 Relationship of Parties.   The Lender shall not be deemed to be, nor do the Lender or Borrower intend that the
Lender shall ever become, a partner, joint venturer, trustee, fiduciary, manager, controlling person, or other business associate or participant of any kind in the business or affairs of Borrower, whether as a result of the Loan Documents or any of
the transactions contemplated by the Loan Documents. In exercising its rights and remedies under the Loan Documents, the Lender shall at all times be acting only as a lender to Borrower within the normal and usual scope of activities of a lender.

 6.2 Indemnification.   Borrower shall indemnify and hold the Lender and its officers, directors, agents,
employees, representatives, shareholders, affiliates, successors and assigns (collectively, the “Indemnified Parties”) harmless from and against any and all claims, demands, damages (including special and consequential damages to the
extent such damages are awarded against an Indemnified Party in a third party claim), liabilities, actions, causes of action, legal proceedings, administrative proceedings, suits, injuries, costs, losses, debts, liens, interest, fines, charges,
penalties and expenses (including attorneys’, accountants’, consultants’, and expert witness fees and costs) of every kind and nature (collectively, the “Claims”) arising directly or indirectly out of or relating to any or
all of the following: (i) Borrower’s breach of any of its Obligations or warranties under the Loan Documents; (ii) any act or omission by Borrower or any of its employees or agents; (iii) Borrower’s use of the Collateral or
any other activity or thing allowed or suffered by Borrower to be done on or about the any of Borrower’s properties; and (iv) any claims for commissions, finder’s fees or brokerage fees arising out of the Line of Credit Loan or the
transactions contemplated by the Loan Documents, if such claim is based on any act, omission or agreement by Borrower or any Affiliate. Notwithstanding anything to the contrary contained in this Section, Borrower shall not be obligated to indemnify
any Indemnified Party for any liabilities resulting solely from the gross negligence, willful misconduct or intentional tortious conduct of such Indemnified Party which such Indemnified Party is determined by the final judgment of a court of
competent jurisdiction to have committed. Borrower’s obligation to indemnify the Indemnified Parties under this Section 6.2 shall survive the cancellation of the Note and the release of the Lender’s security interests under the
Security Documents. 
 6.3 [Intentionally Left Blank] 

6.4 Actions.   Whether or not an Event of Default has occurred, the Lender shall have the right, but not the
obligation, to commence, appear in, or defend any action or proceeding which affects or which the Lender determines may affect (a) the Collateral; (b) Borrower’s or the Lender’s respective rights or obligations under the Loan
Documents; (c) the Line of Credit Loan; or (d) the disbursement of any proceeds of the Line of Credit Loan. 
 6.5 Lender
Expenses.   Upon Lender’s demand, Borrower shall reimburse Lender for all reasonable and documented Lender Expenses. 

6.6 No Third Party Beneficiaries.   The Loan Documents are entered into for the sole protection and benefit of the
Lender, Borrower and Guarantors, as applicable, and their respective permitted successors and assigns. No other Person shall have any rights or causes of action under the Loan Documents. 

6.7 Documents.   The form and substance of all documents and instruments which Borrower is required to deliver to the
Lender under this Agreement shall be subject to the Lender’s reasonable approval. 
 6.8 Notices.   All notices
and demands by the Lender to Borrower under this Agreement shall be in writing and shall be effective on the earliest of (a) personal delivery to Borrower; (b) two (2) days after deposit in first class or certified United States mail,
postage prepaid, addressed to Borrower at the address set forth in the Loan Schedule; and (c) one (1) business day after deposit with a reputable overnight delivery service, delivery charges prepaid, addressed to Borrower at the address
set forth in the Loan Schedule. All notices and demands by Borrower to the Lender under this Agreement shall be in writing and shall be effective on actual receipt by the Lender at the Lender’s address shown in the Loan Schedule; provided,
however, that non-receipt of any such notice or demand by the Lender as a result of the Lender’s refusal to accept delivery or the Lender’s failure to notify Borrower of the Lender’s change of address shall be deemed to constitute
receipt by the Lender. The addresses specified in the Loan Schedule may be changed by notice given in accordance with this Section. 

6.9 Severability; No Offsets.   If any provision of the Loan Documents shall be held by any court of competent
jurisdiction to be unlawful, voidable, void, or unenforceable for any reason, such provision shall be deemed to be 

  
 9 

 
severable from and shall in no way affect the validity or enforceability of the remaining provisions of the Loan Documents. No Obligations shall be offset by all or part of any claim, cause of
action, or cross-claim of any kind, whether liquidated or unliquidated, which Borrower now has or may hereafter acquire or allege to have acquired against the Lender. To the fullest extent permitted by law, Borrower waives the benefits of any
applicable law, regulation, or procedure which provides, in substance, that where cross demands for money exist between parties at any point in time when neither demand is barred by the applicable statute of limitations, and an action is thereafter
commenced by one such party, the other party may assert the defense of payment in that the two demands are compensated so far as they equal each other, notwithstanding that an independent action asserting the claim would at the time of filing the
response be barred by the applicable statute of limitations. 
 6.10 Interpretation.   Whenever the context of this
Agreement reasonably requires, all words used in the singular shall be deemed to have been used in the plural, and the neuter gender shall be deemed to include the masculine and feminine gender, and vice versa. The headings to sections of this
Agreement are for convenient reference only and shall not be used in interpreting this Agreement. For purposes of this Agreement, (a) the term “including” shall be deemed to mean “including without limitation”; (b) the
term “document” shall be deemed to include all written contracts, commitments, agreements, and instruments; and (c) the term “discretion,” when applied to any determination, consent, or approval right by the Lender, shall be
deemed to mean the Lender’s sole but good faith business judgment. 
 6.11 Time of the Essence.   Time is of
the essence in the performance of each provision of the Loan Documents by Borrower and/or any Guarantors. 
 6.12
Amendments.   The Loan Documents (excluding the Guaranties and Third Party Pledge Agreements) may be modified only by a written agreement signed by Borrower and the Lender. Notwithstanding the foregoing or any other terms in
this Agreement, the Note or other Loan Documents, the Line of Credit Loan may be renewed or the Maturity Date extended repeatedly and/or for any length of time as mutually agreed to by Lender and Borrower. 

6.13 Counterparts.   This Agreement and each of the other Loan Documents may be executed in counterparts, each of
which shall constitute an original, and all of which together shall constitute one and the same document. 
 6.14 Entire
Agreement.   The Loan Documents contain the entire agreement concerning the subject matter of the Loan Documents and supersede all prior and contemporaneous negotiations, agreements, statements, understandings, terms, conditions,
representations and warranties, whether oral or written, by and among the Lender, Borrower and Guarantors concerning the Loan which is the subject matter of the Loan Documents. 

6.15 No Waiver by Lender.   No waiver by the Lender of any of its rights or remedies in connection with the
Obligations or of any of the terms or conditions of the Loan Documents shall be effective unless such waiver is in writing and signed by the Lender. 

6.16 Cumulative Remedies.   No right or remedy of the Lender under this Agreement or the other Loan Documents shall be
exclusive of any other right or remedy under the Loan Documents or to which the Lender may be entitled. The Lender’s rights and remedies under the Loan Documents are cumulative and in addition to all other rights and remedies which the Lender
may have under any other document with Borrower and under applicable law. 
 6.17 Joint and Several Liability.  
[Intentionally Deleted] 
 6.18 Assignment.   Borrower shall not assign, encumber, or otherwise transfer any or all
of Borrower’s rights under the Loan Documents, whether voluntarily, involuntarily, or by operation of law, without the Lender’s prior written consent, which consent may be withheld in the Lender’s discretion. Unless an Event of
Default exists or the Lender is merged into or otherwise acquired by a third Person, in which case no consent shall be required, Lender shall not assign, encumber or otherwise transfer any or all of Lender’s rights under the Loan Documents,
whether voluntarily, involuntarily, or by operation of law, without Borrower’s prior written consent, which consent may not be unreasonably withheld (provided, that if in any case that Borrower’s consent is required, the refusal of
Borrower to consent to the assignment, encumbrance or other transfer to a Competitor shall not be deemed unreasonable). For purposes of this Section 6.18, “Competitor” means any direct corporate competitor of Borrower or any of its
affiliates operating as an investment bank advisory firm and/or institutional asset manager. Any purported assignment, encumbrance or transfer by either party in violation of this Section shall be void. 

6.19 Waivers.   Borrower waives presentment, demand for payment, protest, notice of demand, dishonor, protest and
non-payment, and all other notices and demands in connection with the delivery, acceptance, performance, default under, and enforcement of the Loan Documents. Borrower waives the right to assert any statute of limitations as a defense to the
enforcement of any or all of the Loan Documents to the fullest extent permitted by law. In the event of Borrower’s payment in partial satisfaction of any or all of the Obligations, Lender shall have the sole and exclusive right and authority to
designate the portion of the Obligations that is to be satisfied. Borrower and all Persons holding a lien of any kind affecting all or part of the Collateral who have actual or constructive notice of this Agreement waive (a) all rights to
require marshalling of assets or liens in the event of Lender’s exercise of any of its rights and remedies under the Loan Documents; and (b) all rights to require Lender to exercise any other right or power or to pursue any other remedy
which Lender may have under any document or applicable law before exercising any other such right, power, or remedy. 

  
 10 

 6.20 Applicable Law; Jurisdiction.   The Loan Documents shall be governed
by and construed in accordance with the laws of the State of California. Each party hereto agrees that the courts of the State of California and Federal District Courts located in San Francisco County, California, shall have exclusive
jurisdiction and venue of any action or proceeding directly or indirectly arising out of or related to the negotiation, execution, delivery, performance, breach, enforcement or interpretation of this Agreement and all of the other Loan Documents or
any of the transactions contemplated by or related to any or all of the Loan Documents, regardless of whether or not any claim, counterclaim or defense in any such action or proceeding is characterized as arising out of fraud, negligence,
intentional misconduct, breach of contract or fiduciary duty, or violation of any Governmental Requirements. Each party hereto irrevocably consents to the personal jurisdiction of such courts, to such venue, and to the service of process in the
manner provided for the giving of notices in this Agreement. Each party hereto waives all objections to such jurisdiction and venue, including all objections that are based upon inconvenience or the nature of the forum. 

6.21 Waiver of Right to Jury Trial.   Each party hereto irrevocably waives all rights to a jury trial in any action,
suit, proceeding or counterclaim of any kind directly or indirectly arising out of or in any way relating to the Line of Credit Loan, this Agreement, any agreement securing the Note, or any of the other Loan Documents, any or all of the collateral
securing the Line of Credit Loan, or any of the transactions which are contemplated by the Loan Documents. The jury trial waiver contained in this section is intended to apply, to the fullest extent permitted by law, to any and all disputes and
controversies that arise out of or in any way related to any or all of the matters described in the immediately preceding sentence, including without limitation contract claims, tort claims, and all other common law and statutory claims of any kind.
This Agreement may be filed with any court of competent jurisdiction as each party’s written consent to such party’s waiver of a jury trial. 

In the event that the jury trial waiver provisions of the preceding paragraph are for any reason invalid or unenforceable, the parties desire
that any litigation or proceeding be resolved by a judge or retired judge applying the applicable law. Therefore, the parties agree to refer, for a complete and final adjudication, any and all issues of fact or law involved in any litigation or
proceeding (including, without limitation, all discovery and law and motion matters, pretrial motions, trial matters, and post-trial motions (e.g., motions for reconsideration, new trial and to tax costs, attorneys’ fees and prejudgment
interest)) up to and including final judgment, brought to resolve any claim dispute covered by the preceding paragraph to a judicial referee who shall be appointed under a general reference pursuant to California Code of Civil Procedure
Section 638 or comparable provisions of federal law. The referee’s decision will stand as the decision of the court, with judgment to be entered on his/her statement of decision in the same manner as if the action had been tried by the
court. Said parties shall select a single neutral referee, who shall be a retired state or federal judge, with at least five years of judicial experience in civil matters. In the event that said parties cannot agree upon a referee, the referee shall
be appointed by the court. The non-prevailing party shall bear the fees and expenses of the referee unless the referee otherwise provides in the statement of decision. 

6.22 Borrower Acknowledgement.   Borrower acknowledges and agrees that (1) Borrower has carefully read and
understands all of the terms of the Loan Documents; (2) Borrower has executed the Loan Documents freely and voluntarily, after having consulted with Borrower’s independent legal counsel and after having had all of the terms of the Loan
Documents explained to it by its independent legal counsel or after having had a full and adequate opportunity to consult with Borrower’s independent legal counsel; (3) the waivers contained in the Loan Documents are reasonable, not
contrary to public policy or law, and have been intentionally, intelligently, knowingly, and voluntarily agreed to by Borrower; (4) the waivers contained in the Loan Documents have been agreed to by Borrower with full knowledge of their
significance and consequences, including full knowledge of the specific nature of any rights or defenses which Borrower has agreed to waive pursuant to the Loan Documents; (5) Borrower has had a full and adequate opportunity to negotiate the
terms contained in the Loan Documents; (6) Borrower is experienced in and familiar with loan transactions of the type evidenced by the Loan Documents; and (7) the waivers contained in the Loan Documents are material inducements to the
Lender’s extension of credit to Borrower, and the Lender has relied on such waivers in making the Line of Credit Loan to Borrower and will continue to rely on such waivers in any related future dealings with Borrower. The waivers contained in
the Loan Documents shall apply to all subsequent extensions, renewals, modifications, and replacements of the Loan Documents, except to the extent expressly provided therein. 

6.23 Successors.   Subject to the restrictions contained in the Loan Documents, the Loan Documents shall be binding
upon and inure to the benefit of the Lender and Borrower and their respective permitted successors and assigns. 
 6.24
Termination.   The Borrower may, at any time, in whole permanently terminate the Commitment upon prior written notice to the Lender. Upon any such termination and repayment in full of any outstanding Line of Credit Loan, accrued
interest and any fees and expenses under the Loan Documents, the Lender shall execute and deliver to the Borrower and/or authorize the filing of, at the Borrower’s expense, all documents that the Borrower shall reasonably request to evidence
such termination and the release of liens and termination of each Loan Document. 
 6.25 Confidentiality.   Lender
will hold, and will cause its representatives to hold, all of the Confidential Information (as defined herein) of Borrower or any other Loan Party in confidence in accordance with Lender’s customary practices for handling such information
unless Lender is compelled to disclose the Confidential Information by judicial or 

  
 11 

 
administrative process or by other requirements of applicable law; provided, however, that if, in the course of any legal or administrative proceedings or as otherwise required by applicable law,
Lender is requested or required to disclose Confidential Information, Lender will, prior to any disclosure and within five (5) calendar days, but only in the event Lender is not legally precluded from doing so, notify Borrower in writing and
provide Borrower with copies of any such written request or demand so that Borrower may at its own expense seek a protective order or other appropriate remedy or waive in writing the provisions of this section to the extent necessary (provided that
one or the other be done). The parties shall cooperate with each other to obtain a protective order or other reliable assurance that confidential treatment will be afforded to designated portions of the Confidential Information. If no protective
order or other remedy is obtained and Borrower has not waived compliance with this section, and if Lender’s counsel is of the opinion that Lender is legally required to disclose Confidential Information under applicable law, Lender may do so
without liability to Borrower, except that disclosure of Confidential Information shall be limited to the information actually required to be disclosed pursuant to applicable law. “Confidential Information” means all documents and
information concerning any Loan Party which is furnished to Lender by or on behalf of such entity in connection with the Loan, except that Confidential Information shall not include documents or information that can be shown to have (i) been
already in the possession of Lender, provided that such information is not known by Lender to be subject to another confidentiality agreement with or other obligation of secrecy to any Loan Party or another party; (ii) been filed with (or
contained in any filing with) the SEC, FINRA or any other of the Governmental Authorities with jurisdiction over any Loan Party or made part of any press release or other public disclosure by Borrower or any of its affiliates; or (iii) becomes
generally available to the public other than as a result of a disclosure by Lender or becomes available to Lender on a non-confidential basis from a source other than a Loan Party or its representatives, provided that such source is not known, after
due inquiry, to be bound by a confidentiality agreement with or other obligation of secrecy to Borrower or another party. Nothing in this section requires the Lender to seek Borrower’s consent or permission to disclose Confidential Information
to Lender’s employees, directors, agents, counsel, auditors, regulators or similarly-situated parties. 
  

									
	Borrower:				Lender:
			
	Evercore Partners Services East L.L.C.				First Republic Bank
					
	By:		 /s/ Robert B. Walsh
				By:		 /s/ Stephen J. Szanto

					
	Name:		 Robert B. Walsh
				Name:		 Stephen J. Szanto

					
	Title:		 CFO
				Title:		 Managing Director

  
 12 

 Exhibit A 

LOAN SCHEDULE 
 This Loan Schedule is an
integral part of the Line of Credit Loan Agreement between the Lender and Borrower, and the following terms are incorporated in and made a part of the Loan Agreement to which this Loan Schedule is attached: 

 

	1.	Borrower:  Borrower represents that its name, address and trade name are as follows: 

  

											
			1.1				Name:				Evercore Partners Services East L.L.C.
						
			1.2				Trade Name or DBA:				None
						
			1.3				Notice Address:				c/o Evercore Partners Inc.
											55 East 52nd Street
											New York, NY 10055
											Attn: Robert B. Walsh
											With a copy to: Adam B. Frankel

  

	2.	Guarantors:  Each of Evercore LP and Evercore Group Holdings L.P. 

Pledgor:  Evercore Group L.L.C. 
  

									
	3.				Lender’s Notice Address:				First Republic Bank
									111 Pine Street
									San Francisco, California 94111
									Attention: Manager, Commercial Loan Operations

  

	4.	Fees.  Borrower hereby agrees to pay to Lender the following fees at the times specified. 

4.1 Loan Fees.  A loan fee of $125,000.00 and a documentation fee of $1,000. 

4.2 Other Fees.  Any other fees payable concurrently herewith and detailed on the Loan Disbursement Instructions. 

 

	5.	Nature of Line of Credit Loan.  The Line of Credit Loan is a revolving line of credit loan, and within the limits of the Commitment and the Borrowing Base, and subject to the terms and conditions
of this Agreement and the other Loan Documents, Borrower may borrow, prepay and reborrow the principal amount of the Line of Credit Loan from time to time. 

  

	6.	Account Authorizations. 

 6.1 Automatic Payment
Authorization.  Borrower authorizes the Lender to make automatic deductions (“Auto Debit”) from the following deposit account (the “Account”) maintained by Borrower at Lender’s offices in order to pay, when
and as due, all installment payments of interest, and/or principal, renewal, modification or other fees or payments (a “Payment”) that Borrower is required or obligated to pay Lender under the Note: 

Account No:         

Without limiting any of the terms of the Loan Documents, Borrower acknowledges and agrees that if Borrower defaults in its
obligation to make a Payment because the collected funds in the Account are insufficient to make such Payment in full on the date that such Payment is due, then Borrower shall be responsible for all late payment charges and other consequences of
such default by Borrower under the terms of the Loan Documents. 

  
 1 

 6.2 Revocation of Authorization.  Subject to the Section immediately
following this Section, this authorization shall continue in full force and effect until the date which is five (5) business days after the date on which Lender actually receives written notice from Borrower expressly revoking the authority
granted to the Lender to charge the Account for Payments in connection with the Line of Credit Loan. No such revocation by Borrower shall in any way release Borrower from or otherwise affect Borrower’s obligations under the Loan Documents,
including Borrower’s obligations to continue to make all Payments required under the terms of the Note. 
 6.3 Termination by
Lender.  The Lender, at its option and in its discretion, reserves the right to terminate the arrangement for Auto Debit pursuant to this Section at any time effective upon written notice of such election (a “Termination
Notice”) given by Lender to Borrower. Without limiting the generality of the immediately preceding sentence, the Lender may elect to give Borrower a Termination Notice for Cause. “Cause” shall mean the failure of Borrower to comply
with any of the Lender’s rules, regulations, or policies relating to the Account, including requirements regarding minimum balance, service charges, overdrafts, insufficient funds, uncollected funds, returned items, and limitations on
withdrawals. 
 6.4 Increase in Interest Rate Upon Termination of Auto Debit.  The date on which the arrangement for
Auto Debit terminates as a result of Borrower’s revocation of such arrangement or any Termination Notice given by the Lender for Cause, is referred to as the “Auto Debit Termination Date”. Borrower acknowledges and agrees that the
Lender would not have been willing to make the Line of Credit Loan at the interest rate contained in the Note in the absence of the arrangement for Auto Debit from the Account pursuant to this authorization. Therefore, effective on the first due
date of a Payment following the Auto Debit Termination Date, Lender, at its option and in its discretion, shall have the right to increase the interest rate on the outstanding principal balance of the Note to a rate which is equal to one-half of
one percent (0.5%) per annum (the “Percentage Rate Increase”) above the otherwise applicable interest rate under the terms of the Note. 

  
 2 

 Exhibit B 

COVENANTS 
 This Exhibit B is an integral
part of the Agreement between the Lender and Borrower, and the following terms are incorporated in and made a part of the Agreement to which this Exhibit B is attached: 
  

	1.	Financial Covenants. 

 1.1 No Additional
Indebtedness.  Without the prior written consent of the Lender, Borrower: (a) shall not incur indebtedness for borrowed money during the term of this Agreement, excluding (i) debts owing by Borrower as of the date of this
Agreement that were previously disclosed in writing to Lender (other than those that are being paid substantially concurrently with the funding of the Line of Credit Loan), (ii) other borrowing from the Lender (or an affiliate of Lender),
(iii) unsecured debt incurred in the ordinary course of business, (iv) indebtedness incurred to finance the acquisition, construction or improvement of any fixed asset or capital asset (including capital lease obligations), and any
indebtedness assumed in connection with the acquisition of any such assets, and (v) debts owed by Borrower to another Loan Party or any affiliate of a Loan Party; and (b) shall not directly or indirectly make, create, incur, assume or
permit to exist any guaranty of any kind of any indebtedness or other obligation of any other Person during the term of this Agreement, excluding any guaranties by Borrower as of the date of this Agreement previously disclosed in writing to Lender
and unsecured guaranties in respect of indebtedness of Borrower’s affiliates if Borrower would have been able to incur such indebtedness directly under the foregoing clause (a) hereof (including any relevant dollar limit set forth
therein). 
 1.2 Days Out of Debt.  Borrower shall cause the balance on all outstanding Line of Credit Advances under
the Line of Credit Loan to be reduced to $0.00 for thirty (30) consecutive days between the date of this Agreement and the Maturity Date, and for each consecutive 12-month period thereafter that the Line of Credit Loan is renewed by Lender in
its discretion. 
 1.3 Borrowing Base.  During the term of this Agreement, the outstanding principal balance of the
Line of Credit Loan shall not, for each calendar quarter or, if applicable, interim calendar month (as described below), exceed the lesser of the Commitment or the Borrowing Base for such quarter or month (the “Available Amount”). The
Borrowing Base shall be determined for each calendar quarter during the term of this Agreement based on the accounts receivable aging statement received for the most recently ended fiscal quarter, and shall remain in effect during such calendar
quarter until delivery of the next quarterly or interim accounts receivable aging statement; provided that during any calendar quarter the Pledgor may, at its election and as long as no Event of Default has occurred and is continuing, submit an
interim monthly statement of Eligible Accounts Receivable setting forth the Eligible Accounts Receivable of the Pledgor as of the last day of an interim calendar month, in which case, the Borrowing Base shall be determined by reference to the last
day of such calendar month for which the accounts receivable aging statement has been delivered. 
 As used in the Loan Documents, the term
“Borrowing Base” means, for each calendar quarter or month, as the case may be, the sum of (A) the product of the Eligible Accounts Receivable of Pledgor as of the last day of the immediately preceding calendar quarter, or in the
event the Pledgor submits an interim monthly statement of Eligible Accounts Receivable as provided above, as of the last day of the immediately preceding calendar month, in each case, multiplied by 80% and (B) the aggregate amount of cash and
cash equivalents of the Borrower held in a designated blocked account of the Borrower with the Lender or an affiliate of the Lender (the “Designated Account”). As used in the Loan Documents, the term “Eligible Accounts
Receivable” means all bona fide accounts receivable generated in the ordinary course of business of the Pledgor; provided, however, that the term Eligible Accounts Receivable shall not include any accounts receivable: 

(a) that have been invoiced and not paid within 120 days of the due date; 

(b) for which any of the actions described in Sections 4.1(e), (h), (i) or (j) hereof has occurred with respect to
the account debtor; 
 (c) with respect to which the account debtor disputes liability or makes any claim and Lender and the
Borrower reasonably agree that there is a basis for such dispute (but only up to the disputed or claimed amount); 
 (d) with
respect to which the Pledgor owes the account debtor, but only to the amount owed (i.e., contra accounts); or 
 (e) with
respect to which the account debtor is an affiliate of the Pledgor, an officer or director of the Pledgor or any affiliate of the Pledgor, or any Person having the power or ability to control the Pledgor. 

  
 1 

 The Eligible Accounts Receivable shall be determined from the quarterly or (if applicable)
interim monthly accounts receivable aging statement submitted by the Pledgor pursuant to this Agreement. 
 Borrower shall have no authority
to request or draw any Line of Credit Advance which, when added to the then outstanding principal balance of the Line of Credit Loan, would exceed the Available Amount, and Lender shall have no obligation to fund any Line of Credit Advance which
would result in the Available Amount being exceeded. If at any time the outstanding principal balance of the Line of Credit Loan exceeds the Available Amount, Borrower shall within two (2) Business Days (i) pay down the principal balance
by no less than the amount of such excess or (ii) deposit funds into the Designated Account in an amount at least equal to such excess. 

Borrower may withdraw funds from the Designated Account only upon prior written notice to Lender (a) one time in conjunction with delivery
of each accounts receivable aging statement demonstrating that the outstanding principal balance of the Line of Credit Loan is less than the Available Amount, (b) in such amount as would not cause the balance of the Line of Credit Loan to
exceed the Available Amount at that time, and (c) as long as no Event of Default has occurred and is continuing. 
  

	2.	Reporting Covenants. 

 2.1 Annual Financial Statements for
Guarantor/Pledgor.  Borrower shall ensure that Evercore LP and Evercore Group L.L.C. shall deliver to Lender annual financial statements, including balance sheet and income statements, within 180 days after the end of each such
entity’s fiscal year, which financial statements shall be audited by an independent certified public accountant of national standing (or otherwise reasonably acceptable to Lender). 

2.2 Interim Financial Statements for Pledgor.  Borrower shall ensure that Evercore Group L.L.C. shall deliver to Lender
internally prepared quarterly financial statements (excluding notes thereto), including balance sheet and income statements (in each case, excluding any notes thereto), within 90 days after the end of each fiscal quarter, certified by such
entity’s chief financial officer or other officer or representative of such entity acceptable to Lender. Such quarterly financials shall be delivered for the first three fiscal quarters of each fiscal year, commencing with the fiscal quarter
ended June 30, 2013. 
 2.3 Accounts Receivable Aging Statement for Pledgor.  Borrower shall ensure that
Evercore Group L.L.C. shall deliver to Lender quarterly accounts receivable aging statements, substantially in the form delivered to Lender in connection with the Loan Closing, within 45 days after the end of each fiscal quarter, certified by its
chief financial officer or other officer or representative of such entity acceptable to Lender. 
  

	3.	Conditions to Closing. 

 3.1 Documents.  Lender shall have
received in form and substance satisfactory to Lender, the documents listed in the Loan Disbursement Instructions, and an Accounts Receivable Aging Statement for Evercore Group L.L.C. as of March 31, 2013. 

3.2 No Default.  No Default or Event of Default shall have occurred and be continuing. 

  
 2

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