Document:

FOURTH AMENDMENT AND REAFFIRMATION AGREEMENT

    THIS FOURTH AMENDMENT AND REAFFIRMATION AGREEMENT is dated as of March 20, 2019 (this “Agreement”), by and among GSE SYSTEMS, INC., a Delaware corporation (“Parent”), GSE
        PERFORMANCE SOLUTIONS, INC., a Delaware corporation (“GSE Performance” and collectively with Parent, the “Borrowers” and each a “Borrower”), GSE TRUE NORTH CONSULTING, LLC, a Delaware limited liability company (“True North”), HYPERSPRING, LLC, a Delaware limited liability company (“Hyperspring”),

        ABSOLUTE CONSULTING, INC., a Delaware corporation (“Absolute” and together with True North and Hyperspring collectively, the “Original Guarantors” and each an “Original Guarantor”), DP ENGINEERING, LLC, formerly DP Engineering Ltd. Co., a
        Delaware limited liability company (“DP Engineering” and together with the Original Guarantors collectively, the “Guarantors” and each a “Guarantor” and together with the Borrowers collectively, the “Loan Parties” and each a “Loan Party”), and CITIZENS BANK, NATIONAL ASSOCIATION (the “Bank”).  Capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed to such terms in the Credit Agreement (as defined below) or the Guaranty (as
        defined below), as applicable.

    WHEREAS, pursuant to the terms of that certain Credit and Security Agreement, dated as of December 29, 2016 (as
        the same may have been amended, renewed, replaced, or supplemented from time to time prior to the Closing Date (as defined in the Credit Agreement), the “Original Credit
            Agreement”), by and among Borrowers and Bank, the Bank agreed to provide a revolving line of credit to Borrowers in an amount not to exceed $5,000,000 pursuant to a revolving line of credit note dated as of the Initial Closing Date
        (as defined in the Credit Agreement) of the Borrowers payable to the order of the Bank (the “RLOC Note”);

    WHEREAS, Hyperspring executed and delivered a Guaranty and Suretyship Agreement (as the same may have been
        amended, restated or modified from time to time, the “Hyperspring Guaranty”) dated as of December 29, 2016 in favor of Bank in connection with Borrower entering
        into the Original Credit Agreement;

    WHEREAS, Absolute executed and delivered a Guaranty and Suretyship Agreement (as the same may have been
        amended, restated or modified from time to time, the “Absolute Guaranty”) dated as of September 20, 2017 in favor of Bank in connection with the Original Credit
        Agreement;

    WHEREAS, True North executed and delivered a Guaranty and Suretyship Agreement (as the same may have been
        amended, restated or modified from time to time, the “True North Guaranty”) dated as of May 11, 2018 in favor of Bank in connection with the Credit Agreement;

    WHEREAS, GSE Performance executed and delivered a Pledge Agreement (as the same may have been amended, restated
        or modified from time to time, the “GSE Performance Pledge Agreement”) dated as of September 20, 2017 in favor of Bank in connection with the Original Credit
        Agreement;

    WHEREAS, Borrowers and Bank entered into that certain Amended and Restated Credit Agreement (as the same may
        have been amended, restated or modified from time to time, the “Credit Agreement”) dated as of May 11, 2018 to continue the RLOC and to provide for a Term Loan
        Facility in a principal amount up to $25,000,000;

    WHEREAS, Original Guarantors and Bank entered into that certain Security Agreement (as the same may have been
        amended, restated or modified from time to time, the “Security Agreement”) dated as of May 11, 2018;

    WHEREAS, pursuant to that certain Amendment and Reaffirmation Agreement dated as of May 11, 2018, the
        Borrowers, the Original Guarantors and the Bank agreed to amend the terms and conditions of the RLOC Note and the GSE Performance Pledge Agreement;

    WHEREAS, pursuant to that certain Second Amendment and Reaffirmation Agreement dated as of  May 25, 2018, the
        Borrowers, the Original Guarantors and the Bank agreed to amend certain terms and conditions of the Credit Documents to reflect the conversion of True North to a Delaware limited liability company;

    WHEREAS, on February 15, 2019 GSE Performance acquired all of the membership interests of DP Engineering and DP
        Engineering executed and delivered a (a) Guaranty and Suretyship Agreement (the “DP Engineering Guaranty” and together with the True North Guaranty, the Hyperspring
        Guaranty and Absolute Guaranty collectively, the “Guaranty”) in favor of Bank in connection with the Credit Agreement and (b) Pledge Agreement in favor of Bank in
        connection with the Credit Agreement; and

    WHEREAS, the parties hereto intend that, (a) the Credit Documents shall be amended subject to the terms and
        conditions set forth herein, (b) the obligations under the Guaranty and the Security Agreement will continue to be in effect, on the terms set forth therein, and (c) the Guaranty and the Security Agreement will continue to support and otherwise
        benefit the Obligations (as defined in the Guaranty).

    NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree, under seal, as follows:

    ARTICLE I

    Section 1.01. Amendments to Credit Documents.  The Credit Documents (as defined in the Credit Agreement) are
        hereby amended as follows:

    (a) All references in the Credit Documents to “DP Engineering Ltd. Co., a Texas limited liability company” are hereby deleted and replaced with “DP Engineering, LLC, a Delaware limited
        liability company”.

    (b) Exhibit A to the GSE Performance Pledge Agreement is hereby deleted and replaced with Exhibit A attached hereto.

    ARTICLE II

        

        

        Reaffirmation

    Section 2.01. Reaffirmation.

    (a) Each Guarantor hereby: (i) affirms and confirms its guarantee and other commitments and
          obligations, under the Guaranty, the Security Agreement and any other Credit Documents executed by such Guarantor and (ii) confirms that each guarantee and other commitments and obligations under the Guaranty, the Security Agreement and any other
          Credit Documents executed by such Guarantor shall continue to be in full force and effect and shall continue to accrue to the benefit of the Bank notwithstanding the effectiveness of the Credit Agreement.

    (b) Each Borrower hereby affirms the execution and delivery to Bank of the Credit Documents, and the Credit Documents are continued in full force and effect and are in all respects hereby
        affirmed and ratified.

    ARTICLE III

        

        

        Representations and Warranties

    Each Loan Party, to the extent applicable, hereby represents and warrants, which representations and warranties
        shall survive execution and delivery of this Agreement, as follows:

    Section 3.01. Organization.  Each Loan Party is duly organized, validly existing and in good standing under the
        laws of the jurisdiction of its organization.

    Section 3.02. Authority; Enforceability.  Each Loan Party has the corporate or limited liability company power to
        execute, deliver and carry out the terms and provisions of this Agreement and has taken all necessary corporate and other action, to authorize the execution, delivery and performance by it of this Agreement.  Each Loan Party has duly executed and
        delivered this Agreement, and this Agreement constitutes a legal, valid and binding obligation of such Loan Party, enforceable against it in accordance with the terms hereof.

    Section 3.03. Credit Documents.  The representations and warranties made by each Loan Party and set forth in the
        Credit Documents are true and correct on and as of the date hereof with the same effect as though made on and as of such date, except to the extent such representations and warranties expressly relate to an earlier date (in which case any such
        representation and warranty shall have been true and correct as of such earlier date).

    ARTICLE IV

        

        

        Miscellaneous

    Section 4.01. Conditions to Effectiveness of Agreement.  The Bank’s willingness to agree to the amendments set
        forth in this Agreement is subject to the delivery by the Borrower to the Bank of the items described under the heading “To be Delivered Within 30 Days Post-Closing” of the closing checklist attached hereto as Exhibit B.

    Section 4.02. Notices.  All communications and notices hereunder shall be in writing and given as provided in
        Section 10.9 of the Credit Agreement or  Section 13 of the Guaranty, as applicable.

    Section 4.03. Expenses.  Each Loan Party acknowledges and agrees that the Bank shall be entitled to reimbursement
        of expenses as provided in Section 10.2 of the Credit Agreement and Section 10 of the Guaranty, as applicable.

    Section 4.04. Credit Document.  This Agreement is a “Credit Document” executed pursuant to the Credit Agreement
        and shall be construed, administered and applied in accordance with the terms and provisions thereof.

    Section 4.05. Successors and Assigns.  The provisions of this Agreement shall be binding upon and inure to the
        benefit of the parties hereto and their respective successors and assigns.

    Section 4.06. No Novation.  Nothing herein contained shall be construed as a substitution or novation of the
        obligations outstanding under the Credit Documents, which shall remain in full force and effect except as modified by this Agreement and the Credit Agreement.

    Section 4.07. Governing Law; Waiver of Jury Trial.  This Agreement shall be construed in accordance with and
        governed by the laws of the State of Delaware. EACH LOAN PARTY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING BROUGHT OR INSTITUTED BY ANY PARTY HERETO OR ANY SUCCESSOR OR
        ASSIGN OF ANY PARTY, ON OR WITH RESPECT TO THIS AGREEMENT, ANY OF THE OTHER DOCUMENTS, THE COLLATERAL OR THE DEALINGS OF THE PARTIES WITH RESPECT HERETO OR THERETO, WHETHER BY CLAIM OR COUNTERCLAIM.

    Section 4.08. Remaining Force and Effect.  Except as specifically amended hereby, the Credit Documents remain in
        full force and effect in accordance with their original terms and conditions.

    

    

    [Remainder of Page Intentionally Left
          Blank]

    IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be duly executed under seal by its
        respective authorized officers as of the day and year first above written.

    	 	
            BANK:

          
	
            Witness/Attest:

              

          	
            CITIZENS BANK, NATIONAL ASSOCIATION

            By: (SEAL) 

                 Edward S. Winslow

                 Senior Vice President

          
	 	
            BORROWERS:

          
	
            Witness/Attest:

              

          	
            GSE SYSTEMS, INC.

            By: (SEAL) 

                 Emmett Pepe

                 Chief Financial Officer

          
	
            Witness/Attest:

              

          	
            GSE PERFORMANCE SOLUTIONS, INC.

            By: (SEAL) 

                 Emmett Pepe

                 Treasurer

          
	 	
            GUARANTORS:

          
	
            Witness/Attest:

              

          	
            ABSOLUTE CONSULTING, INC.

            By: (SEAL) 

                 Emmett Pepe

                 Treasurer

          
	
            Witness/Attest:

              

          	
            HYPERSPRING, LLC

            By: (SEAL) 

                 Emmett Pepe

                 Treasurer

          
	 	 
	
            Witness/Attest:

              

          	
            GSE TRUE NORTH CONSULTING, LLC

            By: (SEAL) 

                 Emmett Pepe

                 Treasurer

          
	 	 
	
            Witness/Attest:

              

          	
            DP ENGINEERING, LLC

            By: (SEAL) 

                 Emmett Pepe

                 Treasurer

          

    

    

    EXHIBIT A

    

    

    ISSUERS

    

    

    Absolute Consulting, Inc., a Delaware corporation (100%)

    GSE True North Consulting, LLC, a Delaware limited liability company (100%)

    

    

    Hyperspring, LLC, a Delaware limited liability company (100%)

    

    

    DP Engineering, LLC, a Delaware limited liability company (100%)

    

    

    DP-NXA Consultants, LLC, a Texas limited liability company (48%)

    

    

    EXHIBIT B

    

    

    CLOSING CHECKLIST

    

    

    See attachment.rdhl_Ex4_4

		

			 

		

		
			Exhibit 4.4
		

		
			 
		

		
			Confidential
		

		
			 
		

		
			THE SYMBOL “[****]” DENOTES PLACES WHERE CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (i) NOT MATERIAL, AND (ii) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE COMPANY IF PUBLICLY DISCLOSED
		

		
			 
		

		
			AMENDMENT NO. 1 TO AGREEMENT
		

		
			 
		

		
			This Amendment No.1 to Agreement is made as of February  26, 2018  (the “Amendment Effective Date”) by and between RedHill Biopharma Ltd. (“RedHill”) and Salix Pharmaceuticals, Inc. (“Salix”).
		

		
			 
		

		
			WITNESETH
		

		
			 
		

		
			WHEREAS, RedHill and Salix have entered into that certain Agreement dated February 27, 2014 (the “Agreement”); and
		

		
			 
		

		
			WHEREAS, [****] and the Parties desire to amend the Agreement to reflect certain changes to the Agreement;
		

		
			 
		

		
			NOW, THEREFORE, in consideration of the mutual promises and covenants set forth herein, the Parties hereby agree as follows:
		

		
			 
		

		
			1.           All terms not otherwise defined herein shall have the meaning ascribed thereto in the Agreement, unless the context requires otherwise.
		

		
			 
		

		
			2.           RedHill hereby [****] of the Agreement pursuant to [****] and the Parties agree that the Agreement shall be [****].
		

		
			 
		

		
			3.           In consideration for the covenants, agreements and undertakings made herein, the receipt and sufficiency of which is hereby acknowledged, RedHill (for itself and each of its successors, assigns, parents, subsidiaries, affiliates, attorneys, agents, employees, directors, officers, representatives, or any persons or entities acting on its behalf) hereby releases and discharges Salix from and against any and all claims, liabilities or damages, whether known or unknown, whether present or future, that RedHill had, has or may have against Salix, and hereby waives any right RedHill may have [****],  in each case, relating to or arising out of any [****] of the Agreement, from the beginning of time through the Amendment Effective Date.
		

		
			 
		

		
			4.           Other than with respect to the releases expressly detailed in Section 3 of this Amendment, nothing herein shall prejudice any rights and remedies conferred [****] in accordance with its terms following the Amendment Effective Date.
		

		
			 
		

		
			5.           In accordance with Section 13.7 of the Agreement, the Agreement is hereby amended as follows:
		

		
			 
		

		
			5.1.         Article 1 is hereby amended to include the following definitions:
		

		
			 
		

		
			
		

		
			

		 

		

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			“Commercially Reasonable Efforts” shall mean, with respect to the efforts and resources to be expended by a Party with respect to any objective or activity under this Agreement, [****].
		

		
			 
		

		
			“Development Plan”  shall mean the development plan prepared by Salix setting out Salix’s plan to Develop [****], as such plan may be amended from time to time by Salix [****], which development plan (and any amendments thereto) shall be provided to RedHill promptly upon completion and, in the case of the initial Development Plan, no later than [****] following the Amendment Effective Date.”
		

		
			 
		

		
			5.2.      Article 3.7.2 is hereby deleted in its entirety and replaced with the following:
		

		
			 
		

		
			“3.7.2     Without limiting the provisions of Section 3.7.1, the Parties acknowledge and agree that, other than as set out in Sections 5.4 and 12.3, Salix has no obligation to Develop or Commercialize any Licensed Product or any obligation to satisfy the conditions to the milestone payments set forth in Section 6.2 or to achieve any particular level of additional consideration or other payments (or additional consideration or other payments payable to Redhill under Section 6.3).”
		

		
			 
		

		
			5.3.      Article 5 is hereby amended by the addition of the following after Section 5.3:
		

		
			 
		

		
			“5.4 Development Diligence. Salix shall use Commercially Reasonable Efforts to pursue the Development of [****] in accordance with the Development Plan.”
		

		
			 
		

		
			5.4.      Section 6.3.1(c) is hereby amended by replacing [****].
		

		
			 
		

		
			5.5.      Section 7.1.1(c) is hereby deleted in its entirety and replaced with the following:
		

		
			 
		

		
			“(c) RedHill shall have the right to be actively involved in the maintenance of Licensed RedHill Patents and License RedHill Know-how. Salix shall provide RedHill with copies of all relevant documentation so that RedHill will be informed of the continuing preparation, filing, prosecution and maintenance of the Licensed RedHill Patents and may comment upon such documentation sufficiently in advance of any filing deadline. Salix shall consider in good faith any comments received from RedHill; provided, however, that if RedHill has not commented upon such documentation in a reasonable time for Salix to sufficiently consider RedHill’s comments prior to a deadline with the relevant government patent office, or Salix must act to preserve the Licensed RedHill Patents, Salix will be free to act without consideration of RedHill’s comments, if any. Salix shall keep RedHill fully informed with respect to any communications with any relevant governmental offices and (i) within [****] of Salix’s receipt thereof, provide to RedHill any written correspondence from any governmental office, and (ii) no later than [****] prior to the submission thereof provide to RedHill any proposed written correspondence to any governmental office, including copies of any and all underlying data to accompany any such correspondence. Salix shall consider in good faith any written comments received from RedHill with respect to such
		

		
			 
		

		
			
		

		
			

		 

		

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			correspondence prior to its submission; provided, however, that if RedHill has not commented upon such correspondence in a reasonable time for Salix to sufficiently consider RedHill’s comments prior to a deadline with respect to such correspondence, Salix will be free to act without consideration of RedHill’s comments, if any. Without derogating from the foregoing, at any time that Salix is not Developing [****] or the Development Plan does not contemplate the Development of [****], Salix shall act in accordance with all comments provided by RedHill in connection with preparation, filing, prosecution and maintenance of the Licensed RedHill Patents, including in preparing any proposed written correspondence to any governmental office and otherwise act in accordance with RedHill’s patent and regulatory strategy as notified timely to Salix’s patent counsel in writing, in each case, unless Salix has a documented and compelling reason not to do so. All of the obligations of Salix set out in this Section 7.1.1(c) shall be subject to (and limited by) its obligations under Applicable Law and under its contractual commitments with any Third Party, including, but not limited to, its obligations of confidentiality and non-disclosure existing as of the Amendment Effective Date.”
		

		
			 
		

		
			5.6.      Section 12.3 is hereby deleted in its entirety and replaced with the following:
		

		
			 
		

		
			“12.3      Additional Termination Rights by RedHill.
		

		
			 
		

		
			12.3.1     In the event that Salix should, at any time during the period beginning [****] following the Effective Date and ending on the date [****], not then be using Commercially Reasonable Efforts to pursue the Development of [****] in accordance with the Development Plan, then RedHill shall be entitled to give Salix notice requiring Salix to commence or resume using Commercially Reasonable Efforts to Develop [****] in accordance with the Development Plan and stating RedHill’s intention to terminate this Agreement if Salix fails to do so. For the avoidance of doubt, RedHill shall be entitled to give such notice more than once, but any such notice may be given only during the period beginning [****] and ending on the date on which [****]. If Salix fails to commence or resume using Commercially Reasonable Efforts to Develop [****], and give notice of such commencement or resumption to RedHill, within [****] after its receipt of such notice (or, if relevant Development activities cannot reasonably be commenced or resumed within such [****] period, if Salix does not commence actions to commence or resume relevant Development activities, and give notice of such commencement to RedHill, within [****] period and thereafter diligently continue such actions or if in any event Salix has not commenced or resumed relevant Development activities, and given notice of such commencement or resumption to RedHill, within [****] after its receipt of such notice), then RedHill shall be entitled, by notice to Salix and without prejudice to any other rights conferred on RedHill by this Agreement and in addition to any other remedies available to RedHill at law or in equity, to terminate this Agreement forthwith.
		

		
			 
		

		
			
		

		
			

		 

		

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			12.3.2 Without derogating from the foregoing, in the event that Salix shall fail, for any reason,  and even if having used Commercially Reasonable Efforts to do so, to (i)  [****] (ii) [****] (as may be extended on mutual agreement of the Parties), then RedHill shall be entitled to give Salix notice requiring Salix to [****] and stating RedHill’s intention to terminate this Agreement if Salix fails to do so. For the avoidance of doubt, RedHill shall be entitled to give such notice more than once (but not for the same event resulting in Salix’ failure to comply with such matters), but any such notice may be given only during (and with respect to events occurring during) the period beginning on the Amendment Effective Date and ending on the date on which [****]. If Salix fails to [****], in each case, within [****] after its receipt of such notice, then this Agreement shall terminate forthwith.  Such right of termination shall be RedHill’s sole remedy with respect to the breaches described in this Section 12.3.2.
		

		
			 
		

		
			6.           Except as specifically amended herein, the provisions of the Agreement shall continue in full force and effect.
		

		
			 
		

		
			[signature page follows]
		

		
			 
		

		
			
		

		
			

		 

		

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

		
			 
		

			
					
						RedHill Biopharma Ltd.

					
					
						 

					
					
						Salix Pharmaceuticals, Inc.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Dror Ben-Asher

					
					
						 

					
					
						By:

					
					
						/s/ Mark McKenna

				
	
					
						Name:

					
					
						Dror Ben-Asher

					
					
						 

					
					
						Name:

					
					
						Mark McKenna

				
	
					
						Title:

					
					
						CEO

					
					
						 

					
					
						Title:

					
					
						SVP & GM

				
	
					
						Feb. 26, 2018

					
					
						 

					
					
						3.20.2018

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Micha Ben Chorin

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Name:

					
					
						Micha Ben Chorin

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Title:

					
					
						CFO

					
					
						 

					
					
						 

					
					
						 

				
	
					
						February 26, 2018

					
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

		

			5

		

 

		

			 

		

		

		
			ANNEX A
		

		
			 
		

		
			[****]
		

		
			 
		

		
			 
		

		 

		

			6

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