Document:

Unassociated Document

    EXHIBIT
      10.2

     

    
      

      July
        20,
        2007

      

      

      Mr.
        Thomas Melina

      

       

      Re:
        Terms
        of Employment

      

      

      Dear
        Tom:

      

      I
        am
        pleased to confirm that MRO Integrated Solutions, LLC (the “Company”), a wholly
        owned subsidiary of Conihasset Capital Partners, Inc. (“Conihasset”), offers
        employment to you as the President of the Company based on the following
        terms.

      

      Term
        of Employment.
        The
        initial term of this agreement will begin on your date of employment by the
        Company, July 1, 2007, and will end on June 30, 2008. You and the Company
        may
        mutually agree to renew this agreement for up to two (2) additional terms.
        The
        first optional renewal term will begin on July 1, 2008 and will end on June
        30,
        2009. The second optional renewal period will begin on July 1, 2009, and
        will
        end on June 30, 2010. You agree to provide the Company with 30-days advance
        written notice prior to the end of the initial term or the first renewal
        term,
        whichever is applicable, if you determine not to renew this agreement at
        the end
        of that term. Similarly, the Company will provide you with 30-days advance
        written notice prior to the end of the initial term or the first renewal
        term,
        whichever is applicable, if the Company determines not to renew this agreement
        at the end of that term.

      

      Position.
        You
        will
        join the Company as its President, with all duties, responsibilities, and
        authority consistent with that position as specified in the job description,
        which is attached as Exhibit A to, and incorporated by reference in, this
        agreement. You will report directly to the Chief Executive Officer of the
        Company.

      

      Base
        Salary.
        The
        annual rate of your base salary for each term of employment will
        be:

      

      1.
         $185,000
        for the initial term of this agreement;

      

      2.
         $198,875
        for the first renewal term, beginning July 1, 2008 and ending June 30, 2009;
        and

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

        
          EXHIBIT
            10.2

           

        

      

      3.
         $213,700
        for the second renewal term, beginning July 1, 2009 and ending June 30,
        2010.

      

      A
        pro-rata portion of the annual base salary for each term will be payable
        on the
        Company’s regular payroll schedule for executive officers.

      

      Annual
        Bonus.
        For each
        one-year term of employment, you will be eligible for an annual bonus of
        up to
        75% of your base salary, which may be pro-rated for less than one year of
        service if the Compensation Committee of the Company’s Board of Directors (the
“Committee”) determines that a bonus is payable before your initial term of
        employment has elapsed. The Committee will determine the time at which a
        bonus
        is payable; however, a bonus based on your service during the Company’s fiscal
        year, will be paid February 15th
        of the
        next year, and a bonus based on your service during the entire period July
        1 to
        June 30 will be paid on the next following August 15th.
        The
        Company may pay your bonus in cash or in Company stock, at the sole discretion
        of the Committee. No bonus will be payable if the Company does not return
        a net
        profit for the relevant period.

      

      The
        Committee will determine your annual bonus eligibility based on its assessment
        of the following five criteria, with 20% of the bonus opportunity determined
        based on each factor:

      

      1. Profitability.
        For the
        initial term of this agreement, the Committee will consider the Company’s
        general profitability for the fiscal year ending December 31, 2007. During
        subsequent terms, the Committee will consider: (a) any increase in profitability
        since the last evaluation date during the fiscal year ending in the relevant
        term, and (b) the amount of such increases.

      

      2. Revenue
        Growth.
        The
        Company must realize revenue growth of 15% per annum, at a minimum, during
        its
        fiscal year ending in the relevant term. In determining whether this target
        has
        been met, the Committee will consider both organic and inorganic revenue
        growth.
        There will be no negative impact if growth declines solely as a direct result
        of
        the divestiture or sale of major asset(s).

      

      3. Financial
        Health.
        The
        Company’s financial health will be evaluated based on certain working capital
        tests. At the close of the fiscal year ending during the relevant term, the
        Company must meet the following minimum working capital ratio standards on
        an
        annual basis:

      

      (a) Current
        Ratio: 1.5 or greater

      (b) Quick
        Ratio: 1.0 or greater

      (c) Inventory
        Turnover: 4 times or greater

      

      4. Debt
        Management.
        The
        Company must maintain a Fixed Charge Coverage Ratio of 1.75 or greater during
        the fiscal year ending in the relevant term. The fixed charge coverage ratio
        shall be computed as follows:

      

      (Capital
        Expenditures + Principle payments due + Interest payments due ) ≥
        1.75

      EBITDA

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

      
        EXHIBIT
          10.2

      

       

      5. Regulatory
        Compliance.
        For
        each fiscal year ending in the relevant term, the President must ensure that
        all
        data provided to Conihasset for Conihasset’s reporting to the Securities and
        Exchange Commission or under rules promulgated by the Securities and Exchange
        Commission is complete, accurate and provided in a timely manner to meet
        deadlines prescribed by the relevant rules and such timeframes as may be
        established by the Company’s Chief Executive Officer or officers of
        Conihasset.

      

      Equity
        Based Compensation. As
        a key
        employee of the Company, you will be eligible to participate in the Conihasset
        Capital Partners, Inc. Stock Option Plan (the “Plan”).

       

      Options
        that are scheduled to vest after the date of grant will vest only if you
        remain
        employed by the Company on the vesting date. Please note that your option
        award
        will be made pursuant to the terms of the Plan and the award agreement. In
        the
        event of any discrepancy between the terms and conditions of your award as
        provided in this letter and the terms and conditions as provided in the Plan
        and
        the award agreement, the provisions of the Plan and the award agreement will
        govern.

      

      Employee
        Benefits. You
        will
        be eligible for the medical and dental coverage provided generally to the
        Company’s executive officers in accordance with the terms and conditions of such
        plans and benefits, and upon your affirmative election to participate in
        such
        coverage. You will also be eligible to participate in the benefits package
        provided to other senior executives of the Company and Conihasset.

      

      Paid
        Time Off. Upon
        your
        employment, you will be eligible for up to four (4) weeks (20 days) of paid
        time
        off for each term of employment.

      

      Severance
        Benefits. Upon
        involuntary termination of your employment by the Company for any reason
        other
        than Cause during the term of employment, including any decision by the Company
        not to renew the terms of this agreement as referenced above for any reason
        other than Cause, you will be entitled to continue to receive your base salary,
        as well as your medical and dental benefits (if you elected this coverage
        prior
        to your termination) for twelve (12) months following the date of your
        termination of employment. This benefit will not be payable in the event
        that
        you decide not to renew this agreement or you otherwise voluntarily terminate
        your employment in any manner. For this purpose, “Cause” shall be defined as
        conduct (including a breach of fiduciary duty to the Company or its affiliates
        or any violation of the policies of the Company or Conihasset relating to
        compliance with applicable law) which is demonstrably and materially injurious
        to the Company or its affiliates or with respect to which the Company
        demonstrates a high likelihood of material injury to the Company or its
        affiliates, monetarily or otherwise, unless the conduct in question was
        undertaken in good faith and with a rational business purpose and based upon
        the
        honest belief that such conduct was in the best interest of the Company or
        its
        affiliates, as the case may be. In particular, “Cause” shall include, but not be
        limited to, your:

      

      (a) Conviction
        of a felony or conviction of a misdemeanor involving moral turpitude (from
        which
        no further appeals have been or can be taken) as determined in good faith
        by the
        Company;

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

        
          EXHIBIT
            10.2

        

         

      

      (b) Material
        breach of the Company’s policies or code of conduct, as determined in good faith
        by the Company;

       

      (c) Gross
        abdication of your duties as an employee and officer of the Company (other
        than
        due to your illness or personal family problems), which conduct remains uncured
        for a period of at least thirty (30) days following written notice of the
        conduct by the Company to you, in each case as determined in good faith by
        the
        Company; or

       

      (d)
         Misappropriation
        of Company assets, personal dishonesty or business conduct which causes material
        or potentially material financial or reputational harm to the Company, in
        each
        case as determined in good faith by the Company.

       

      *
        *
        *

       

      Please
        note that the terms of employment contained in this letter supersede all
        prior
        discussions, documents, and agreements concerning your employment with the
        Company, and constitute the entire terms of employment offered to you by
        the
        Company. This letter agreement may be amended only by a written agreement
        between you and the Company.

      

      On
        behalf
        of Conihasset and the Company we welcome you to the Company, and we look
        forward
        to working with you to ensure the Company’s continued success.

       

       

      Sincerely,

       

      
        	 	 	 	 
	/s/ Richard
                D. Bailey	 	 	 
	
                

                By:
                  Richard D. Bailey

                Chief
                  Executive Officer

                Conihasset
                  Capital Partners, Inc.

              	 	 	
              
	 	 	 	 

      

       

      I
        accept
        the offer of employment with MRO Integrated Solutions, LLC on the terms and
        conditions specified in this letter agreement and the attached job
        description.

       

      
        	 	 	 	 
	July
                21, 2007 	 	 	/s/ Thomas
                Melina
	
                
Date 	 	 	
                
Thomas
                Melina
	 	 	 	 

 

      
        
           

        

        
          4Unassociated Document

     

    SECOND
      SUPPLEMENTAL INDENTURE

     

    SECOND
      SUPPLEMENTAL INDENTURE, dated as of July 19, 2007 (this "Supplemental
      Indenture"), by and among Gundle/SLT Environmental, Inc., a Delaware corporation
      (the "Company"), having its principal offices at 19103 Gundle Road, Houston,
      Texas 77073, GSE Lining Technology, Inc., a Delaware corporation ("GSE
      Lining"),
      having its principal offices at 19103 Gundle Road, Houston, Texas 77073, GSE
      International, Inc., a Delaware corporation ("GSE
      International"
      and,
      together with GSE Lining, the "Delaware
      Guarantors"),
      having its principal offices at 19103 Gundle Road, Houston, Texas 77073, GSE
      Clay Lining Technology Co., a South Dakota general partnership ("GSE
      Clay Lining"
      and,
      together with the Delaware Guarantors, the "Guarantors"),
      having its principal offices at 3150 1st Avenue, Spearfish, South Dakota, and
      U.S. Bank National Association, a national banking association organized under
      the laws of the United States of America, as trustee (the "Trustee"), having
      its
      principal Corporate Trust Office at U.S. Bank National Association, 60
      Livingston Avenue, EP-MN-WS3C, St. Paul, MN 55107-2292.

     

    RECITALS:

     

    WHEREAS,
      the Company executed and delivered its Indenture, dated as of May 18, 2004,
      as
      supplemented by the First Supplemental Indenture, dated as of May 18, 2004
      (as
      so supplemented, the "Original Indenture"), to the Trustee, pursuant to which
      the Company has $150 million aggregate principal amount of 11% Series B Senior
      Notes due 2012 (the "Notes") outstanding. Capitalized terms used herein without
      definition shall have the meanings assigned to them in the Original
      Indenture;

     

    WHEREAS,
      Section 9.2 of the Original Indenture provides that the Company and the Trustee
      may, with certain exceptions, amend the Indenture and the Notes with the consent
      of the Holders of not less than a majority in principal amount of the
      outstanding Notes affected by such supplemental indenture;

     

    WHEREAS,
      the Company has distributed a Consent Solicitation Statement, dated as of July
      9, 2007 (the "Solicitation Statement"), and accompanying Consent, dated as
      of
      July 9, 2007, to the Holders of the Notes in connection with a certain proposed
      amendment to the Indenture as described in the Solicitation Statement (the
      "Proposed Amendment");

     

    WHEREAS,
      the Holders of more than a majority of the principal amount of the Notes
      outstanding have duly consented to the Proposed Amendment;

     

    WHEREAS,
      the Board of Directors of the Company has determined that it is in the best
      interests of the Company to authorize and approve the Proposed Amendment;
      and

     

    WHEREAS,
      an Officers' Certificate and Opinion of Counsel have been delivered to the
      Trustee in accordance with Sections 9.6, 11.4 and 11.5 of the Original
      Indenture.

     

    WHEREAS,
      the execution and delivery of this Second Supplemental Indenture have been
      duly
      authorized by all necessary corporate action on the part of the Company and
      the
      Delaware Guarantors and all necessary general partnership action on the part
      of
      GSE Clay Lining and all conditions and requirements necessary to make this
      instrument a valid and binding agreement have been duly performed and complied
      with.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    NOW
      THEREFORE, in consideration of the foregoing and for other good and valuable
      consideration, the receipt and sufficiency of which is hereby acknowledged,
      the
      Company and the Trustee mutually covenant and agree, for the equal and ratable
      benefit of the Holders of the Notes, as follows:

     

    ARTICLE
      I
— AMENDMENT

     

    SECTION
      1.01. AMENDMENT TO THE REPORTING REQUIREMENTS IN THE ORIGINAL
      INDENTURE.

     

    Section
      4.3 is amended to read as follows:

     

    Whether
      or not the Company is subject to the reporting requirements of Section 13 or
      15(d) of the Exchange Act, so long as any Notes are outstanding, the Company
      will furnish to the Trustee and to each Holder of Notes, within 10 days after
      the expiration of the time periods specified in the Commission’s rules and
      regulations applicable to non-accelerated filers (if the Company were subject
      to
      such rules and regulations):

     

    (i)
      a
      consolidated balance sheet of the Company as of the end of each fiscal year,
      including footnotes, and the related consolidated statements of income and
      retained earnings and of cash flows for such fiscal year, including footnotes,
      setting forth in comparative form consolidated figures for the preceding fiscal
      year, together with a report thereon by the Company’s certified independent
      public accountants, and a management’s discussion and analysis of financial
      condition and results of operations for
      such
      periods;

     

    (ii)
      with
      respect to each of the first three fiscal quarters in each fiscal year of the
      Company, a consolidated balance sheet of the Company, including footnotes,
      as of
      the end of such fiscal quarter, and the related consolidated statements of
      income and of cash flows for such fiscal quarter and the then elapsed portion
      of
      such fiscal year, including footnotes, setting forth in comparative form
      consolidated figures for the corresponding periods of the preceding fiscal
      year,
      and a management’s discussion and analysis of financial condition and results of
      operations for
      such
      periods;
      and

     

    (iii)
      all
      current reports that would be required to be filed with the Commission on Form
      8-K pursuant to items 1.01, 1.02, 1.03, 2.01, 2.03, 2.04, 2.05, 2.06, 3.03,
      4.01, 4.02, 5.01 and 5.02, but excluding executive compensation information
      currently required by item 5.02(f), if the Company were required to file such
      reports.

     

    The
      Company will (a) distribute such information and such reports (as well as the
      details regarding the conference call described below) electronically to the
      Trustee and (b) make them available to any Holder of Notes, any beneficial
      owner
      of Notes or any prospective investor, securities analyst or market maker in
      the
      Notes by posting such information and reports on IntraLinks or a comparable
      password protected electronic transmission system, which will require a
      confidentiality acknowledgement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    In
      addition, within 105 days from the end of each fiscal year and within 60 days
      from the end of each of the first three quarters of each fiscal year, the
      Company will hold a conference call to discuss results of operations and allow
      participants to ask questions at the end of such call, including any securities
      analyst or market maker in the Notes. The Company will make the details
      regarding the conference call available to any Holder of Notes, any beneficial
      owner of Notes or any prospective investor, securities analyst or market maker
      in the Notes on Intralinks or a comparable password protected electronic
      transmission system, which will require a confidentiality acknowledgement.
      Securities analysts or market makers will not be deemed to have violated any
      confidentiality obligation to the Company as a result of the publication of
      research or other reports in each case in the ordinary course of their business
      or as a result of providing information to investors or prospective investors
      in
      the ordinary course of their business.

     

    ARTICLE
      II — MISCELLANEOUS

     

    SECTION
      2.01. EFFECT OF SUPPLEMENTAL INDENTURE. From and after the effective date of
      this Second Supplemental Indenture, the Original Indenture and the Notes shall
      be supplemented in accordance herewith, and this Second Supplemental Indenture
      shall form a part of the Original Indenture and the Notes for all purposes,
      and
      every Holder of Notes heretofore or hereafter authenticated and delivered under
      the Original Indenture shall be bound thereby.

     

    SECTION
      2.02. INDENTURE REMAINS IN FULL FORCE AND EFFECT. Except as supplemented by
      this
      Second Supplemental Indenture, all provisions in the Original Indenture and
      the
      Notes shall remain in full force and effect.

     

    SECTION
      2.03. REFERENCES TO SUPPLEMENTAL INDENTURE. Any and all notices, requests,
      certificates and other instruments executed and delivered after the execution
      and delivery of this Second Supplemental Indenture may refer to the Original
      Indenture without making specific reference to this Second Supplemental
      Indenture, but nevertheless all such references shall include this Second
      Supplemental Indenture unless the context requires otherwise.

     

    SECTION
      2.04. CONFLICT WITH TRUST INDENTURE ACT. The Company will comply with the
      provisions of the TIA. If any provision of this Second Supplemental Indenture
      limits, qualifies or conflicts with any provision of the TIA that is required
      under the TIA to be part of and govern any provision of this Second Supplemental
      Indenture, the provision of the TIA shall control. If any provision of this
      Second Supplemental Indenture modifies or excludes any provision of the TIA
      that
      may be so modified or excluded, the provision of the TIA shall be deemed to
      apply to the Indenture as so modified or to be excluded by this Second
      Supplemental Indenture, as the case may be.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECTION
      2.05. SEVERABILITY. If any court of competent jurisdiction shall determine
      that
      any provision in this Second Supplemental Indenture shall be invalid, illegal
      or
      unenforceable, the validity, legality and enforceability of the remaining
      provisions shall not in any way be affected or impaired thereby.

     

    SECTION
      2.06. HEADINGS. The Article and Section headings of this Second Supplemental
      Indenture have been inserted for convenience of reference only, are not to
      be
      considered a part of this Second Supplemental Indenture and shall in no way
      modify or restrict any of the terms or provisions hereof.

     

    SECTION
      2.07. BENEFITS OF SECOND SUPPLEMENT INDENTURE. Nothing in this Second
      Supplemental Indenture or the Notes, express or implied, shall give to any
      Person, other than the parties hereto and thereto and their successors hereunder
      and thereunder and the Holders of the Notes any benefit of any legal or
      equitable right, remedy or claim under the Original Indenture, this Second
      Supplemental Indenture or the Notes.

     

    SECTION
      2.08. SUCCESSORS AND ASSIGNS. All agreements by the Company in this Second
      Supplemental Indenture shall bind its successors and assigns, whether or not
      so
      expressed. All agreements by the Trustee in this Second Supplemental Indenture
      shall bind its successors, whether or not so expressed.

     

    SECTION
      2.09. TRUSTEE NOT RESPONSIBLE FOR RECITALS. The recitals contained herein shall
      be taken as the statements of the Company and the Trustee assumes no
      responsibility for their correctness.

     

    SECTION
      2.10. CERTAIN DUTIES AND RESPONSIBILITIES OF THE TRUSTEE. In entering into
      this
      Second Supplemental Indenture, the Trustee shall be entitled to the benefit
      of
      every provision of the Original Indenture and the Notes relating to the conduct
      or affecting the liability or affording protection to the Trustee, whether
      or
      not elsewhere herein so provided.

     

    SECTION
      2.11. GOVERNING LAW. This Second Supplemental Indenture shall be governed by,
      and construed in accordance with, the laws of the State of New York. This Second
      Supplemental Indenture is subject to the provisions of the TIA that are required
      to be part of this Second Supplemental Indenture and shall, to the extent
      applicable, be governed by such provisions.

     

    SECTION
      2.12. COUNTERPART ORIGINALS. This Second Supplemental Indenture may be executed
      in any number of counterparts, and each of such counterparts shall for all
      purposes be deemed to be an original, but all of such counterparts shall
      together constitute one and the same instrument.

     

    SECTION
      2.13. EFFECTIVENESS. This Second Supplemental Indenture shall become effective
      upon the acceptance for payment by the Company of any Notes tendered pursuant
      to
      the Consent Solicitation.

     

    SECTION
      2.14. CONFIRMATION. Each of the Company and the Trustee hereby confirms and
      reaffirms the Original Indenture in every particular except as amended and
      supplemented by this Second Supplemental Indenture.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

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

    
      	 	 	 
	 	GUNDLE/SLT ENVIRONMENTAL, INC.
	 
 	 
 	 
 
	
            	By:  	/s/ Ernest C. English, Jr.
	 	
              
                

              

              Name:  Ernest
                C. English, Jr. 

              
                Title:
                  Vice President, Chief Financial 

                Officer/Treasurer/Assistant
                  Secretary

              

            

    

    
      	 	 	 
	 	GSE LINING TECHNOLOGY, INC. 
	 
 	 
 	 
 
	
            	By:  	/s/ Ernest C. English, Jr.
	 	
              
                

              

              Name: Ernest C. English, Jr.

              Title:  Vice
                President/Chief Financial  Officer/Treasurer

            

      	 	 	 
	 	GSE INTERNATIONAL, INC.
	 
 	 
 	 
 
	
            	By:  	/s/ Ernest C. English, Jr.
	 	
              
                

              

              Name: Ernest C. English, Jr. 

              
                Title:
                   Vice
                  President/Treasurer/Assistant  Secretary

              

            

    

    
      	 	 	 
	 	GSE CLAY LINING TECHNOLOGY CO. 
	 
 	 
 	 
 
	
            	By:  	/s/ Ernest C. English, Jr.
	 	
              
                

              

              Name: Ernest C. English, Jr. 

              Title:  Authorized
                Signatory

            

      	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as
              Trustee
	 
 	 
 	 
 
	
            	By:  	/s/ Richard Prokosch
	 	
              

              Name:
                Richard Prokosch    

              Title:  
                Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}]]