Document:

WWW.EXFILE.COM, INC. -- 888-775-4789 -- WORLD ENERGY SOLUTIONS, INC. -- EXHIBIT 10.1 TO FORM 8-K

    Exhibit
10.1

    

    

    FIRST
LOAN MODIFICATION AGREEMENT

     

    This First Loan Modification Agreement
(this “First Loan Modification
Agreement”) is entered into as of September 30, 2009, by and between (i)
SILICON VALLEY BANK, a
California corporation, with its principal place of business at 3003 Tasman
Drive, Santa Clara, California 95054 and with a loan production office located
at One Newton Executive Park, Suite 200, 2221 Washington Street, Newton,
Massachusetts 02462 (“Bank”) and
(ii)  WORLD ENERGY
SOLUTIONS, INC., a Delaware corporation with offices located at 446 Main
Street, Worcester, Massachusetts 01608, and WORLD ENERGY SECURITIES CORP.,
a Massachusetts securities corporation with offices located at 446 Main Street,
Worcester, Massachusetts 01608 (individually and collectively, jointly and
severally, “Borrower”).

    

    1.           DESCRIPTION OF EXISTING
INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations
which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to
a loan arrangement dated as of September 8, 2008, evidenced by, among other
documents, a certain Loan and Security Agreement dated as of September 8, 2008,
between Borrower and Bank (as amended, the “Loan Agreement”).  Capitalized
terms used but not otherwise defined herein shall have the same meaning as in
the Loan Agreement.

    

    2.           DESCRIPTION OF
COLLATERAL.  Repayment of the Obligations is secured by the
Collateral as described in the Loan Agreement (together with any other
collateral security granted to Bank, the “Security Documents”).

    

    Hereinafter,
the Security Documents, together with all other documents evidencing or securing
the Obligations shall be referred to as the “Existing Loan
Documents”.

    

    3.           DESCRIPTION OF CHANGE IN
TERMS.

    

    A.           Modifications
to Loan Agreement.

    

    
      	
               
      

            	
              1

            	
              The
      Loan Agreement shall be amended by deleting the following, appearing as
      Section 2.3(a) thereof, in its
entirety:

            

    

    

    “(a)           Interest Rate; Advances.  Subject
to Section 2.3(b), (a) the principal amount of the Revolving Line outstanding
due to Advances made in respect of Eligible Accounts shall accrue interest at a
floating per annum rate equal to the aggregate of the Prime Rate plus one and
three-quarters of one percentage point (1.75%), provided, however, during a
Streamline Period, the principal amount of the Revolving Line outstanding due to
Advances made in respect of Eligible Accounts shall accrue interest at a
floating per annum rate equal to the aggregate of the Prime Rate plus
three-quarters of one percentage point (0.75%); and (b) the principal amount of
the Revolving Line outstanding due to Advances made in respect of Eligible
Retail Backlog Accounts shall accrue interest at a floating per annum rate equal
to the aggregate of the Prime Rate plus two and one-quarter of one percentage
point (2.25%), provided, however, during a
Streamline Period, the principal amount of the Revolving Line outstanding due to
Advances made in respect of Eligible Retail Backlog Accounts shall accrue
interest at a floating per annum rate equal to the aggregate of the Prime Rate
plus one and one-half of one percentage point (1.50%).  Interest on
any Credit Extension shall be payable monthly.”

     

    and inserting in lieu thereof the
following:

    

    “(a)           Interest Rate; Advances.  Subject
to Section 2.3(b), (a) the principal amount of the Revolving Line outstanding
due to Advances made in respect of Eligible Accounts shall accrue interest at a
floating per annum rate equal to the aggregate of the Prime Rate 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    plus two
and one-quarter of one percentage point (2.25%), provided, however, during a
Streamline Period, the principal amount of the Revolving Line outstanding due to
Advances made in respect of Eligible Accounts shall accrue interest at a
floating per annum rate equal to the aggregate of the Prime Rate plus one and
one-quarter percentage points (1.25%); and (b) the principal amount of the
Revolving Line outstanding due to Advances made in respect of Eligible Retail
Backlog Accounts shall accrue interest at a floating per annum rate equal to the
aggregate of the Prime Rate plus two and three-quarters of one percentage point
(2.75%), provided, however, during a
Streamline Period, the principal amount of the Revolving Line outstanding due to
Advances made in respect of Eligible Retail Backlog Accounts shall accrue
interest at a floating per annum rate equal to the aggregate of the Prime Rate
plus two percentage points (2.00%).  Interest on any Credit Extension
shall be payable monthly.”

     

    
      	
               
      

            	
              2

            	
              The
      Loan Agreement shall be amended by deleting the following, appearing as
      Section 2.4(d) thereof, in its
entirety:

            

    

    

    “(d)           Unused Revolving Line
Facility Fee.  A fee (the “Unused Revolving Line Facility
Fee”), which fee shall be paid monthly, in arrears, on the last Business
Day of each month, in an amount equal to one-half of one percent (0.50%) per
annum of the average unused portion of the Revolving Line, as determined by
Bank.  Borrower shall not be entitled to any credit, rebate or
repayment of any Unused Revolving Line Facility Fee previously earned by Bank
pursuant to this Section notwithstanding any termination of the within
Agreement, or suspension or termination of Bank’s obligation to make loans and
advances hereunder; and”

     

    and inserting in lieu thereof the
following:

    

    “(d)           Unused Revolving Line
Facility Fee.  A fee (the “Unused Revolving Line Facility
Fee”), which fee shall be paid monthly, in arrears, on the last Business
Day of each month, in an amount equal to three-quarters of one percent (0.75%)
per annum of the average unused portion of the Revolving Line, as determined by
Bank.  Borrower shall not be entitled to any credit, rebate or
repayment of any Unused Revolving Line Facility Fee previously earned by Bank
pursuant to this Section notwithstanding any termination of the within
Agreement, or suspension or termination of Bank’s obligation to make loans and
advances hereunder; and”

     

    
      	
               
      

            	
              3

            	
              The
      Loan Agreement shall be amended by deleting the following, appearing as
      Section 6.2(a)(vi) thereof, in its
entirety:

            

    

    

    “(vi) as
soon as available, and in any event within one hundred fifty (150) days
following the end of Borrower's fiscal year, annual financial statements
certified by, and with an unqualified opinion of, independent certified public
accountants acceptable to Bank.”

     

    and inserting in lieu thereof the
following:

    

    “(vi) as
soon as available, and in any event within ninety (90) days following the end of
Borrower's fiscal year, annual financial statements certified by, and with an
unqualified opinion of, independent certified public accountants acceptable to
Bank.”

     

    
      	
               
      

            	
              4

            	
              The
      Loan Agreement shall be amended by deleting the following, appearing as
      Section 6.6 thereof, in its
entirety:

            

    

    

    “6.6           Access to Collateral; Books and
Records.  At reasonable times, on one (1) Business Day’s notice
(provided no notice is required if an Event of Default has occurred and is
continuing), Bank, or its agents, shall have the right on a semi-annual basis
(or more frequently if an Event of Default has occurred and is continuing), to
inspect the 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Collateral
and the right to audit and copy Borrower’s Books.  The foregoing
inspections and audits shall be at Borrower’s expense, and the charge therefor
shall be $750 per person per day (or such higher amount as shall represent
Bank’s then-current standard charge for the same), plus reasonable out-of-pocket
expenses.  In the event Borrower and Bank schedule an audit more than
ten (10) days in advance, and Borrower cancels or seeks to reschedules the audit
with less than ten (10) days written notice to Bank, then (without limiting any
of Bank’s rights or remedies), Borrower shall pay Bank a fee of $1,000 plus any
out-of-pocket expenses incurred by Bank to compensate Bank for the anticipated
costs and expenses of the cancellation or rescheduling.”

     

    and inserting in lieu thereof the
following:

    

    “6.6           Access to Collateral; Books and
Records.  At reasonable times, whenever there are any
outstanding Credit Extensions, on one (1) Business Day’s notice (provided no
notice is required if an Event of Default has occurred and is continuing), Bank,
or its agents, shall have the right on a semi-annual basis (or more frequently
if an Event of Default has occurred and is continuing), to inspect the
Collateral and the right to audit and copy Borrower’s Books.  The
foregoing inspections and audits shall be at Borrower’s expense, and the charge
therefor shall be $850 per person per day (or such higher amount as shall
represent Bank’s then-current standard charge for the same), plus reasonable
out-of-pocket expenses.  In the event Borrower and Bank schedule an
audit more than ten (10) days in advance, and Borrower cancels or seeks to
reschedules the audit with less than ten (10) days written notice to Bank, then
(without limiting any of Bank’s rights or remedies), Borrower shall pay Bank a
fee of $1,000 plus any out-of-pocket expenses incurred by Bank to compensate
Bank for the anticipated costs and expenses of the cancellation or
rescheduling.  Borrower acknowledges and agrees that prior to the
first Credit Extension request to be made made after the execution of the First
Loan Modification Agreement, Bank shall have completed an audit and inspection
of Borrower’s Accounts, the Collateral, and Borrower’s Books, with results
satisfactory to Bank in its sole and absolute discretion.”

     

    
      	
               
      

            	
              5

            	
              The
      Loan Agreement shall be amended by deleting the following, appearing as
      Section 6.9(a) thereof, in its
entirety:

            

    

    

    “(a)           Tangible Net
Worth.  A Tangible Net Worth of at least Five Hundred Thousand
Dollars ($500,000.00).”

     

    and inserting in lieu thereof the
following:

    

    (a)           Minimum
EBITDA.  A minimum EBITDA, measured on a trailing three-month
basis ending as of the date indicated below, in an amount not less than (no
greater loss than) the amounts indicated below:

     

    
      
        
          	
                  Trailing
      Three Month Period Ended

                	
                  Minimum
      EBITDA (maximum loss)

                
	
                  September
      30, 2009

                	
                  ($450,000)

                
	
                  October
      31, 2009 through and including November 30, 2010

                	
                  ($350,000)

                
	
                  December
      31, 2010 and each monthly period ending thereafter

                	
                  $1.00

                

        

      

    

     

     

    
      	
               
      

            	
              6

            	
              The
      Loan Agreement shall be amended by deleting the following definition
      appearing in Section 12.1thereof:

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “12.1        Termination Prior to Maturity
Date.  This Agreement may be terminated prior to the Revolving
Line Maturity Date by Borrower, effective three (3) Business Days after written
notice of termination is received by Bank or if Bank’s obligation to fund Credit
Extensions terminates pursuant to the terms of Section
2.1.1(b).  Notwithstanding any such termination, Bank’s lien and
security interest in the Collateral shall continue until Borrower fully
satisfies its Obligations.  If such termination is at Borrower’s
election or at Bank’s election due to the occurrence and continuance of an Event
of Default, Borrower shall pay to Bank, in addition to the payment of any other
expenses or fees then-owing, a termination fee in an amount equal to Fifteen
Thousand Dollars ($15,000.00) provided that no termination fee shall be charged
if the credit facility hereunder is replaced with a new facility from another
division of Silicon Valley Bank.  Upon payment in full of the
Obligations and at such time as Bank’s obligation to make Credit Extensions has
terminated, Bank shall release its liens and security interests in the
Collateral and all rights therein shall revert to Borrower.”

     

    and inserting in lieu thereof the
following:

    

    “12.1        Termination Prior to Maturity
Date.  This Agreement may be terminated prior to the Revolving
Line Maturity Date by Borrower, effective three (3) Business Days after written
notice of termination is received by Bank or if Bank’s obligation to fund Credit
Extensions terminates pursuant to the terms of Section
2.1.1(b).  Notwithstanding any such termination, Bank’s lien and
security interest in the Collateral shall continue until Borrower fully
satisfies its Obligations.  If such termination is at Borrower’s
election or at Bank’s election due to the occurrence and continuance of an Event
of Default, Borrower shall pay to Bank, in addition to the payment of any other
expenses or fees then-owing, a termination fee in an amount equal to (i) if
terminated on or before the first anniversary of the First Loan Modification
Agreement, Twenty Thousand Dollars ($20,000.00) and (ii) if terminated after the
first anniversary of the First Loan Modification Agreement but prior to the
Revolving Line Maturity Date, Ten Thousand Dollars ($10,000.00); provided that
in either case no termination fee shall be charged if the credit facility
hereunder is replaced with a new facility from another division of Silicon
Valley Bank.  Upon payment in full of the Obligations and at such time
as Bank’s obligation to make Credit Extensions has terminated, Bank shall
release its liens and security interests in the Collateral and all rights
therein shall revert to Borrower.”

     

    
      	
               
      

            	
              7

            	
              The
      Loan Agreement shall be amended by deleting the following definition
      appearing in Section 13.1thereof:

            

    

    

    ““Prime Rate” is Bank’s most
recently announced “prime rate,” even if it is not Bank’s lowest
rate.

     

    “Revolving Maturity Date” is
September 7, 2009.

     

    “Tangible Net Worth” is, on any
date, the consolidated total assets of Borrower and its Subsidiaries minus (a)
any amounts attributable to (i) goodwill, (ii) intangible items including
unamortized debt discount and expense, patents, trade and service marks and
names, copyrights and research and development expenses except prepaid expenses,
(iii) notes, accounts receivable and other obligations owing to Borrower from
its officers or other Affiliates, and (iv) reserves not already deducted from
assets, minus (b) Total Liabilities plus (c) Subordinated Debt.”

     

    and inserting in lieu thereof the
following:

    

    ““EBITDA” is (a) Net Income,
plus (b) Interest Expense, plus (c) to the extent deducted in the calculation of
Net Income, depreciation expense and amortization expense, plus (d) income tax
expense plus (f) non-cash stock-based compensation expense.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “First Loan Modification
Agreement” is that certain First Loan Modification Agreement by and
between Borrower and Bank, dated as of September 30, 2009.

     

    “Interest Expense” means for
any fiscal period, interest expense (whether cash or non-cash) determined in
accordance with GAAP for the relevant period ending on such date, including, in
any event, interest expense with respect to any Credit Extension and other
Indebtedness of Borrower and its Subsidiaries, if any, including, without
limitation or duplication, all commissions, discounts, or related amortization
and other fees and charges with respect to letters of credit and bankers’
acceptance financing and the net costs associated with interest rate swap, cap,
and similar arrangements, and the interest portion of any deferred payment
obligation (including leases of all types).

     

    “Net Income” means, as
calculated on a consolidated basis for Borrower and its Subsidiaries, if
any,  for any period as at any date of determination, the net profit
(or loss), after provision for taxes, of Borrower and its Subsidiaries for such
period taken as a single accounting period.

     

    “Prime Rate” is the greater of
(i) four percent (4.00%) per annum and (ii) Bank’s most recently announced
“prime rate,” even if it is not Bank’s lowest rate.

     

    “Revolving Maturity Date” is
March 7, 2011.”

     

    
      	
               
      

            	
              8

            	
              The
      Compliance Certificate appearing as Exhibit B to
      the Loan Agreement is hereby replaced with the Compliance Certificate
      attached as Exhibit A
      hereto.

            

    

    

    4.           FEES.  Borrower
shall pay to Bank a modification fee equal to Twenty Six Thousand Dollars
($26,000), which fee shall be due on the date hereof and shall be deemed fully
earned as of the date hereof.  Borrower shall also reimburse Bank for
all legal fees and expenses incurred in connection with this amendment to the
Existing Loan Documents.

    

    5.           RATIFICATION OF NEGATIVE
PLEDGE.  Borrower hereby ratifies, confirms and reaffirms, all
and singular, the terms and conditions of a certain negative pledge arrangement
with respect to Borrower’s intellectual property, between Borrower and Bank, and
Borrower acknowledges, confirms and agrees that said negative pledge arrangement
remains in full force and effect.

    

    6.           ADDITIONAL COVENANTS:
RATIFICATION OF PERFECTION CERTIFICATE.  Borrower shall not,
without providing the Bank with thirty (30) days prior written notice: (i)
relocate its principal executive office or add any new offices or business
locations or keep any Collateral in any additional locations, or (ii) change its
jurisdiction of organization, or (iii) change its organizational structure or
type, (iv) change its legal name, or (v) change any organizational number (if
any) assigned by its jurisdiction of organization.  In addition, the
Borrower hereby certifies that no Collateral is in the possession of any third
party bailee (such as at a warehouse).  In the event that Borrower,
after the date hereof, intends to store or otherwise deliver the Collateral to
such a bailee, then Borrower shall first receive, the prior written consent of
Bank and such bailee must acknowledge in writing that the bailee is holding such
Collateral for the benefit of Bank.  Borrower hereby ratifies,
confirms and reaffirms, all and singular, the terms and disclosures contained in
a certain Perfection Certificate dated as of September 8, 2008 (as updated,
amended, amended and restated, supplemented and/or modified as of the date
hereof), and acknowledges, confirms and agrees the disclosures and information
above Borrower provided to Bank in the Perfection Certificate (as updated,
amended, amended and restated, supplemented and/or modified as of the date
hereof) has not changed.

    

    7.           AUTHORIZATION TO
FILE.  Borrower hereby authorizes Bank to file UCC financing
statements without notice to Borrower, with all appropriate jurisdictions, as
Bank deems appropriate, in order to further perfect or protect Bank’s interest
in the Collateral, including a notice that any disposition of the Collateral, by
either the Borrower or any other Person, shall be deemed to violate the rights
of the Bank under the Code.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    8.           CONSISTENT
CHANGES.  The Existing Loan Documents are hereby amended
wherever necessary to reflect the changes described above.

    

    9.           RATIFICATION OF LOAN
DOCUMENTS.  Borrower hereby ratifies, confirms, and reaffirms
all terms and conditions of all security or other collateral granted to the
Bank, and confirms that the indebtedness secured thereby includes, without
limitation, the Obligations.

    

    10.         NO DEFENSES OF
BORROWER.  Borrower hereby acknowledges and agrees that
Borrower has no offsets, defenses, claims, or counterclaims against Bank with
respect to the Obligations, or otherwise, and that if Borrower now has, or ever
did have, any offsets, defenses, claims, or counterclaims against Bank, whether
known or unknown, at law or in equity, all of them are hereby expressly WAIVED
and Borrower hereby RELEASES Bank from any liability thereunder.

    

    11.         CONTINUING
VALIDITY.  Borrower understands and agrees that in modifying
the existing Obligations, Bank is relying upon Borrower’s representations,
warranties, and agreements, as set forth in the Existing Loan
Documents.  Except as expressly modified pursuant to this Loan
Modification Agreement, the terms of the Existing Loan Documents remain
unchanged and in full force and effect.  Bank’s agreement to
modifications to the existing Obligations pursuant to this Loan Modification
Agreement in no way shall obligate Bank to make any future modifications to the
Obligations.  Nothing in this Loan Modification Agreement shall
constitute a satisfaction of the Obligations.  It is the intention of
Bank and Borrower to retain as liable parties all makers of Existing Loan
Documents, unless the party is expressly released by Bank in
writing.  No maker will be released by virtue of this Loan
Modification Agreement.

    

    12.         RIGHT OF
SET-OFF.  In consideration of Bank’s agreement to enter into
this Loan Modification Agreement, Borrower hereby reaffirms and hereby grants to
Bank, a lien, security interest and right of set off as security for all
Obligations to Bank, whether now existing or hereafter arising upon and against
all deposits, credits, collateral and property, now or hereafter in the
possession, custody, safekeeping or control of Bank or any entity under the
control of Silicon Valley Bank  (including a Bank subsidiary) or in
transit to any of them.  At any time after the occurrence and during
the continuance of an Event of Default, without demand or notice, Bank may set
off the same or any part thereof and apply the same to any liability or
obligation of Borrower even though unmatured and regardless of the adequacy of
any other collateral securing the loan.  ANY AND ALL RIGHTS TO REQUIRE
BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL
WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH
RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY
KNOWINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED.

    

    13.         CONFIDENTIALITY.  Bank
may use confidential information for the development of databases, reporting
purposes, and market analysis, so long as such confidential information is
aggregated and anonymized prior to distribution unless otherwise expressly
permitted by Borrower.  The provisions of the immediately preceding
sentence shall survive the termination of the Loan Agreement.

    

    14.         JURISDICTION/VENUE.  Borrower
accepts for itself and in connection with its properties, unconditionally, the
exclusive jurisdiction of any state or federal court of competent jurisdiction
in the Commonwealth of Massachusetts in any action, suit, or proceeding of any
kind against it which arises out of or by reason of this Loan Modification
Agreement; provided, however, that if for any reason Bank cannot avail itself of
the courts of the Commonwealth of Massachusetts, then venue shall lie in Santa
Clara County, California.  NOTWITHSTANDING THE
FOREGOING,  THE BANK SHALL HAVE THE RIGHT TO BRING ANY ACTION OR
PROCEEDING AGAINST THE BORROWER OR ITS PROPERTY IN THE COURTS OF ANY OTHER
JURISDICTION WHICH THE BANK DEEMS NECESSARY OR APPROPRIATE IN ORDER TO REALIZE
ON THE COLLATERAL OR TO OTHERWISE ENFORCE THE BANK’S RIGHTS AGAINST THE BORROWER
OR ITS PROPERTY.

    

    15.         COUNTERSIGNATURE.  This
First Loan Modification Agreement shall become effective only when it shall have
been executed by Borrower and Bank.

    

    [The
remainder of this page is intentionally left blank]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    This
First Loan Modification Agreement is executed as a sealed instrument under the
laws of the Commonwealth of Massachusetts as of the date first written
above.

     

    

     

    BORROWER:

     

    WORLD
ENERGY SOLUTIONS, INC.

     

    By     /s/
James
Parslow                 
                                                                           

     

    Name: James
Parslow                   
 
                                                                           

     

    Title:  Chief Financial
Officer        
                                                                           

     

    

     

    WORLD
ENERGY SECURITIES CORP.

     

    By     /s/
James Parslow          
      
                                                                           

     

    Name: James
Parslow                     
  
                                                                          

     

    Title:  Treasurer                               
 
                                                                          

     

    

     

    BANK:

     

    SILICON
VALLEY BANK

     

    By      /s/
Chris
Leary                     
                                                                           

     

    Name:  Chris
Leary                         
                                                      

     

    Title: VP                                            
                                                     

     

     

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
A

     

    EXHIBIT
B

    COMPLIANCE
CERTIFICATE

    

     

    
      	TO: 	SILICON VALLEY
      BANK 	 	 	
              Date:
      _______ 

            
	FROM:	WORLD ENERGY
      SOLUTIONS, INC. 	 	 	 
	 	AND WORLD ENERGY
      SECURITIES CORP. 	 	 	 

    

    

    The
undersigned authorized officers of World Energy Solutions, Inc., and World
Energy Securities Corp. (individually and collectively, jointly and severally,
“Borrower”), solely in
their capacities as officers of their respective entities, certify that under
the terms and conditions of the Loan and Security Agreement between Borrower and
Bank (the “Agreement”),
(1) Borrower is in complete compliance for the period ending _______________
with all required covenants except as noted below, (2) there are no Events of
Default, (3) all representations and warranties in the Agreement are true
and correct in all material respects on this date except as noted below;
provided, however, that such materiality qualifier shall not be applicable to
any representations and warranties that already are qualified or modified by
materiality in the text thereof; and provided, further that those
representations and warranties expressly referring to a specific date shall be
true, accurate and complete in all material respects as of such date, (4)
Borrower, and each of its Subsidiaries, has timely filed all required tax
returns and reports, and Borrower has timely paid all foreign, federal, state
and local taxes, assessments, deposits and contributions owed by Borrower except
as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement,
and (5) no Liens have been levied or claims made against Borrower or any of its
Subsidiaries, if any, relating to unpaid employee payroll or benefits of which
Borrower has not previously provided written notification to
Bank.  Attached are the required documents supporting the
certification.  The undersigned solely in their capacities as officers
of their respective entities, certify that these are prepared in accordance with
GAAP consistently applied from one period to the next except as explained in an
accompanying letter or footnotes.  The undersigned solely in their
capacities as officers of their respective entities, acknowledge that no
borrowings may be requested at any time or date of determination that Borrower
is not in compliance with any of the terms of the Agreement, and that compliance
is determined not just at the date this certificate is
delivered.  Capitalized terms used but not otherwise defined herein
shall have the meanings given them in the Agreement.

     

    
      
        
          	
                  Please
      indicate compliance status by circling Yes/No under “Complies”
      column.

                
	 
      
	
                  Reporting Covenant

                	
                  Required

                	
                  Complies

                
	 
      	 
      	 
      
	
                  Monthly
      financial statements with

                  Compliance
      Certificate

                	
                  Monthly
      within 30 days

                	
                  Yes 
           No

                
	
                  Annual
      financial statement (CPA Audited) + CC

                	
                  FYE
      within 90 days

                	
                  Yes   
         No

                
	
                  10-Q,
      10-K and 8-K

                	
                  Within
      5 days after filing with SEC

                	
                  Yes   
         No

                
	
                  A/R
      & A/P Agings, Deferred Revenue report, and

                  schedule
      of expected collections

                	
                  Monthly
      within 20 days

                	
                  Yes  
          No

                
	
                  Borrowing
      Base Certificate

                	
                  Monthly
      within 20 Days

                   during
      Streamline Period

                	
                  Yes   
         No

                
	
                  Transaction
      Report

                	
                  Weekly
      when not Streamline Period

                  and
      upon each request for a Credit Extension

                	
                  Yes   
         No

                
	
                  Board-approved
      projections

                	
                  Within
      30 days of approval

                	
                  Yes   
         No

                

        

      

    

     

     

    
      
        
          	
                  Financial Covenant

                	
                  Required

                	
                  Actual

                	
                  Complies

                
	 
      	 
      	 
      	 
      
	
                  Maintain,
      to be tested monthly, on a trailing three-month basis:

                	 
      	 
      	 
      
	
                  Minimum
      EBITDA (maximum loss)

                	
                  *

                	
                  $________

                	
                  Yes   No

                

        

      

    

    

    *See Section 6.9(a) of the Loan
Agreement

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The following financial covenant
analyses and information set forth in Schedule 1 attached hereto are true and
accurate as of the date of this Certificate.

    

    The following are the exceptions with
respect to the certification above:  (If no exceptions exist, state
“No exceptions to note.”)

     

    
      
        

      

      
        
          

        

        
          
            

          

        

      

    

     

    
      	
              WORLD
      ENERGY SOLUTIONS, INC.

               

              By: ___________________________                                                      

              Name: _________________________

              Title:  _________________________

               

              WORLD
      ENERGY SECURITIES CORP.

               

              By: ___________________________

              Name: _________________________

              Title: __________________________

               

            	
              BANK
      USE ONLY

               

              Received
      by: ____________________________

              authorized
      signer

              Date: __________________________________

               

              Verified:
      ________________________________

              authorized
      signer

              Date:  __________________________________

               

              Compliance
      Status:               Yes     No

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
 

    Schedule 1 to Compliance
Certificate

    

    Financial Covenants of
Borrower

    

    Dated: ____________________

    

    I.           Minimum EBITDA (Section
6.9(a))

    

    Required:  A
minimum EBITDA, measured on a trailing three-month basis ending as of the date
indicated below, in an amount not less than (no greater loss than) the amounts
indicated below:

     

    
      	
              Trailing
      Three month Period Ended

            	
              Minimum
      EBITDA (maximum loss)

            
	
              September
      30, 2009

            	
              ($450,000)

            
	
              October
      31, 2009 through and including November 30, 2010

            	
              ($350,000)

            
	
              December
      31, 2010 and each monthly period ending thereafter

            	
              $1.00

            

    

    

     

    

    Actual:
All amounts measured on a trailing three month basis, ending as of the date of
measurement.

    

    
      
        	
                A.

                 

              	
                Net
      Income

              	
                $ ______

              
	
                B.

                 

              	
                Interest
      Expense

              	
                $ ______

              
	
                C.

                 

              	
                To
      the extent deducted in the calculation of Net Income, depreciation expense
      and amortization expense

              	
                $ ______

              
	
                D.

                 

              	
                Income
      tax expense

              	
                $ ______

              
	
                E.

                 

              	
                Non-cash
      stock-based compensation expense

              	
                $ ______

              
	
                F.

                 

              	
                EBITDA
      (line A plus line B plus line C plus line D plus line E)

              	
                $ ______

              

      

    

    

    Is line F
in an amount not less than (no greater loss than) $[
___________________________________ ]?

    

    ______  No, not in
compliance                                                                                     ______ 
Yes, in complianceEXHIBIT 10.1

 

FIRST AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS FIRST
AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (“this
Amendment”) dated as of October 2, 2009 (the “Effective Date”) is entered
into by PROTECTIVE LIFE CORPORATION, a Delaware
corporation (“PLC”), PROTECTIVE LIFE INSURANCE
COMPANY, a Tennessee corporation (“PLICO”; PLC and PLICO are
together referred to as the “Borrowers”), REGIONS BANK,
an Alabama banking corporation (“Regions”), and the various lenders identified
on the signature pages hereto (collectively, the “Lenders”), and REGIONS BANK, in its capacity, as Administrative Agent for
the Lenders (the “Administrative Agent”).

 

Recitals

 

A.            The Borrowers, the Lenders
and the Administrative Agent are parties to a certain Second Amended and
Restated Credit Agreement dated as of April 16, 2008 (as amended or
supplemented from time to time, the “Credit Agreement”).

 

B.            The Borrowers have requested that the
Lenders and the Administrative Agent amend the Credit Agreement to make certain
modifications to the Credit Agreement as set forth herein.

 

C.            The Lenders and the
Administrative Agent have agreed to make such modifications, provided that the
Borrowers, the Lenders and the Administrative Agent enter into this Amendment.

 

Agreement

 

NOW,
THEREFORE, in consideration of the foregoing recitals and in
further consideration of the mutual agreements set forth herein, the Borrowers,
the Lenders and the Administrative Agent hereby agree as follows, with such
agreements to become effective as of the Effective Date:

 

1.             Rules of Construction.  This Amendment is subject to the rules of
construction set forth in the Credit Agreement.

 

2.             Definitions.  Capitalized terms used in this Amendment and
not otherwise defined herein have the meanings defined for them in the Credit
Agreement.

 

3.             Representations
and Warranties of Borrowers.  The Borrowers represent and warrant to the
Lenders and the Administrative Agent as follows:

 

(a)           Representations
and Warranties in Credit Documents.  All of the representations and warranties set
forth in the Credit Documents are true and correct on 

 

 

and as of the Effective Date, except to the
extent that such representations and warranties expressly relate to an earlier
date.

 

(b)           No Default.  As of the Effective Date, each Borrower is in
compliance with all the terms and provisions set forth in the Credit Documents
on its part to be observed or performed, and no Event of Default, nor any event
that upon notice or lapse of time or both would constitute such an Event of
Default, has occurred and is continuing.

 

(c)           Borrowers’
Organizational Documents.  The Borrowers’ organizational documents have
not been amended since April 16, 2008.

 

4.             Amendments
to Credit Agreement.  The
Credit Agreement is hereby amended as follows:

 

(a)           The third sentence of the
definition of Indebtedness in Article I of the Credit Agreement shall be
amended and restated to read in its entirety as follows:

 

“Notwithstanding the foregoing, Indebtedness shall not include: (1) the
following obligations issued in connection with the funding of statutory
reserves and with respect to which the Borrowers have no obligation to repay: (A) surplus
notes or other obligations of Subsidiaries of the Borrowers (“Capital Market
Notes”), (B) any securities backed by such Capital Market Notes, (C) letters
of credit issued for the account of Subsidiaries of the Borrowers that are not
issued under this Agreement, and (D) any guarantees by the issuers of the
obligations described in (A), (B) and (C) above, (2) the sale
and issuance of up to $800 million of senior notes of PLC during the fourth
quarter of 2009, the proceeds of which will be used to purchase Capital Market
Notes in connection with the funding of statutory reserves and any subsequent
reserve financing transaction for which the Borrowers will receive approval
from the Required Lenders to exclude from this definition of Indebtedness, (3) any
short-term indebtedness incurred for the pre-funding of anticipated policy
obligations or anticipated investment cash flow, or (4) obligations that
are not otherwise included in items (i) through (viii) of the
definition of Indebtedness, but which would be classified as a liability on the
Borrowers’ financial statements only by reason of FASB Interpretation No. 46
or a subsequent accounting pronouncement having a substantially similar impact.

 

(b)           The definition of “Unconsolidated
Cash Inflow Available for Interest Expense” in Article I of the Credit
Agreement shall be amended and restated to read in its entirety as follows:

 

“Unconsolidated Cash Inflow Available for Interest
Expense” means, for any period of calculation, the sum (without
duplication) of (a) all amounts received by PLC from its Subsidiaries
during such period as 

 

2

 

(i) interest and principal on Indebtedness (including but not
limited to Surplus Notes), provided however that interest and principal on
Capital Market Notes purchased with the proceeds of senior notes of PLC which
have been excluded from the definition of Indebtedness shall be excluded and (ii) management
fees (net of expenses incurred in providing the services for which such
management fees were paid), (b) all amounts that PLC’s Subsidiaries were
permitted, under applicable laws and regulations, to distribute to PLC during
each period as dividends, whether or not so distributed, and (c) other
income of PLC.”

 

5.             Fees and Legal Expenses.  The Borrowers hereby agree to pay all
reasonable legal costs and expenses incurred in connection with the review,
analysis and preparation of this Amendment.

 

6.             References in Credit Documents.  All references in the Credit Documents to the
“Credit Agreement” shall mean the Credit Agreement as amended by this
Amendment.

 

7.             Credit
Documents to Remain in Effect.  Except as specifically modified by this
Amendment, the Credit Agreement and the other Credit Documents shall remain in
full force and effect in accordance with their respective terms.

 

8.             No
Novation, etc.  Nothing
contained in this Amendment shall be deemed to constitute a novation of the
terms of the Credit Documents, nor release any obligor from liability for any
of the Obligations, nor affect any of the rights, powers or remedies of the
Lenders and the Administrative Agent under the Credit Documents, nor constitute
a waiver of any provision thereof, except as specifically set forth in this
Amendment.

 

9.             Governing
Law, Successors and Assigns, etc.  This Amendment shall be governed by and
construed in accordance with the laws of the State of Alabama and shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

 

10.           Headings.  The descriptive headings of the sections of
this Amendment are for convenient reference only and shall not be deemed to
affect the meaning or construction of any of the provisions hereof.

 

11.           Entire
Agreement.  This
Amendment constitutes the entire understanding to date of the parties hereto
regarding the subject matter hereof and supersedes all prior and
contemporaneous oral and written agreements of the parties thereto with respect
to the subject matter hereof.

 

12.           Severability.  If any provision of this Amendment 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.

 

3

 

13.           Counterparts.  This Amendment may be executed in any number
of counterparts, each of which so executed shall be deemed an original, but all
such counterparts shall together constitute but one and the same instrument.

 

14.           No
Waiver.  Nothing
contained herein shall be construed as a waiver or acknowledgement of, or
consent to any breach of or Event of Default under the Credit Agreement and the
Credit Documents not specifically mentioned herein, and the waivers and
consents granted herein are effective only in the specific instance and for the
purposes for which given.

 

15.           Effect of this Amendment.  This Amendment amends and supplements the
Credit Agreement and shall be construed as if it were a part thereof for all
purposes.  Any representation or warranty
contained herein that shall prove to be false or misleading in any material
respect at the time made shall constitute an Event of Default under the Credit
Agreement and the other Credit Documents in accordance with the Credit
Agreement as if such representation or warranty had been contained in the
Credit Agreement, and any default by the Borrowers in the performance or observance
of any provision of this Amendment shall constitute an Event of Default under
that section as if such provision had been contained in the Credit Agreement.

 

[Remainder of page intentionally
left blank]

 

4

 

IN WITNESS WHEREOF, the
Borrowers, the Lenders and the Administrative Agent have executed this
Amendment.

 

 

	
   

  	
  PROTECTIVE LIFE CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard L. Bielen

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Print Name: 

  	
  Richard L. Bielen

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Vice Chairman and Chief
  Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  PROTECTIVE LIFE INSURANCE
  COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard L. Bielen

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Print Name: 

  	
  Richard L. Bielen

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Vice Chairman and Chief
  Financial Officer

  
					

 

 

	
   

  	
  REGIONS BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ David A. Simmons

  
	
   

  	
   

  	
   

  
	
   

  	
  Print Name: 

  	
  David A. Simmons

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  
					

 

 

	
   

  	
  WACHOVIA BANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Beth C. McGinnis

  
	
   

  	
   

  	
   

  
	
   

  	
  Print Name: 

  	
  Beth C. McGinnis

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  
					

 

 

	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ James H. Harper

  
	
   

  	
   

  	
   

  
	
   

  	
  Print Name: 

  	
  James H. Harper

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Vice President

  
					

 

 

	
   

  	
  WELLS FARGO BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Beth C. McGinnis

  
	
   

  	
   

  	
   

  
	
   

  	
  Print Name: 

  	
  Beth C. McGinnis

  
	
   

  	
   

  	
   

  
	
   

  	
  Title: 

  	
  Senior Vice President

  
					

 

 

	
   

  	
  REGIONS BANK, as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ David A. Simmons

  
	
   

  	
   

  	
   

  
	
   

  	
  Print Name: 

  	
  David A. Simmons

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:
  

  	
  Senior
  Vice President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]