Document:

Exhibit

Execution Version 
WAIVER AGREEMENT
January 23, 2020
Reference is made to the (i) Second Amended and Restated Certificate of Designations of Series B-1 Preferred Stock of Infrastructure and Energy Alternatives, Inc. (the “Corporation”), dated as of November 14, 2019 (the “Series B-1 COD”) and the (ii) Amended and Restated Certificate of Designations of Series B-2 Preferred Stock of the Corporation, dated as of November 14, 2019 (the “Series B-2 COD”, and together with the Series B-1 COD, the “CODs”). Capitalized terms used but not defined herein have the meanings assigned to such terms in the Series B-2 COD.  
Pursuant to Section 14 of each of the CODs, (i) effective as of the Closing Date (as defined in the Series B-1 COD) for so long as Ares and its Affiliates holds at least 50% of the Series B-1 Preferred Stock issued to Ares on the Closing Date (as defined in the Series B-1 COD), Ares has the exclusive right to designate and appoint or replace the First Series B Director and (ii) effective as of September 13, 2019, for so long as Ares and its Affiliates holds at least 50% of the Series B-2 Preferred Stock issued to Ares on the Series B-2 Closing Date, Ares has the exclusive right to designate and appoint or replace the Second Series B Director.
Ares hereby agrees that, for so long as (i) the size of the Board is comprised of seven (7) or fewer individuals, (ii) at least three (3) of the directors on the Board qualify as independent pursuant to guidance from the United States Securities and Exchange Commission and the rules of the applicable stock exchange (such directors, “Independent Directors”), (iii) Ares is entitled to appoint both the First Series B Director and the Second Series B Director, (iv) each of the stockholders of the Corporation and their respective Affiliates with specific board designation rights as of the date hereof (other than Ares and its Affiliates) is entitled to appoint no more than one director to the Board and (v) no stockholder of the Corporation (other than the stockholders of the Corporation as of the date hereof or their Affiliates) is entitled to appoint any directors to the Board, Ares shall only be entitled to appoint either the First Series B Director or the Second Series B Director, but not both.  If at any time, any of the conditions set forth in clauses (i) through (v) of the immediately foregoing sentence is no longer satisfied, this waiver agreement shall automatically terminate and be of no further force and effect.   
Ares hereby agrees that, for so long as he serves as the Chief Executive Officer of the Company, John Paul Roehm shall be included as a member of the Board; provided that John Paul Roehm shall cease to be included as a member of the Board immediately upon his ceasing to serve as Chief Executive Officer of the Corporation (with it being understood that the Board may, in its sole discretion, elect to nominate John Paul Roehm to serve as his successor to the extent permissible under the organizational documents of the Corporation then in effect.) 

Without limiting the generality of the foregoing and without limiting anything set forth in the CODs, the Corporation agrees with Ares to, if applicable, include the First Series B Director or Second Series B Director, as applicable, in the slate of nominees recommended by the Board and to use its reasonable best efforts to cause the election of such First Series B Director or Second Series B Director, as applicable, to the Board, including, without limitation, nominating the First Series B Director or Second Series B Director, as applicable, to be elected as a director of the Corporation, recommending election and soliciting proxies or consents in favor thereof, in each case subject to applicable law.
Except as specifically set forth herein, nothing contained in this waiver agreement shall be deemed to diminish or modify any rights of Ares or any obligations of the Corporation set forth in the CODs.
This waiver agreement is intended to bind and inure to the benefit of the parties hereto and their respective successors and assigns.  This waiver agreement shall be governed by and construed in accordance with the laws of the State of Delaware.
This waiver agreement may be executed in one or more counterparts, each of which shall constitute part of the same agreement. 
[signature page follows]

Ares Management LLC, ON BEHALF OF ITS AFFILIATED FUNDS, INVESTMENT VEHICLES AND/OR MANAGED ACCOUNTS

By: /s/ Christopher Kerezsi                        
Name: Christopher Kerezsi
Title:   Authorized Signatory

Agreed and Accepted as of the date first written above: 

Infrastructure and Energy Alternatives, Inc.

By:    /s/ John P. Roehm
Name:  John P. Roehm
Title:    Chief Executive OfficerExhibit

FIRST AMENDMENT TO
RIGHTS OFFERING AGREEMENT

This First Amendment to Rights Offering Agreement (the “Amendment”), dated as January 27, 2020, is entered into by and among Infrastructure and Energy Alternatives, Inc., a Delaware corporation (“IEA” or the “Company”), Ares Special Situations Fund IV, L.P., a Delaware limited partnership (“Ares SSF”), ASOF Holdings I, L.P., a Delaware limited partnership (“ASOF” and, together with Ares SSF, “Ares”), Oaktree Power Opportunities Fund III Delaware, L.P., a Delaware limited partnership (“OPPF”), Infrastructure and Energy Alternatives, LLC, a Delaware limited liability company (“Oaktree Holdco”) and OT POF IEA Preferred B Aggregator, L.P., a Delaware limited partnership (“OT Aggregator” and, together with OPPF and Oaktree Holdco, “Oaktree”).

Recitals

WHEREAS, on October 29, 2019, IEA entered into an Equity Commitment Agreement (the “Tranche 2 ECA”) with Ares and Oaktree, pursuant to which, on the terms and subject to the conditions set forth therein, IEA issued to Ares and Ares purchased from IEA at the initial closing (the “Closing”) 80,000 shares of Series B-3 Preferred Stock and 3,568,750 Warrants, and Ares and Oaktree committed to purchase up to 30,000 additional shares of Series B-3 Preferred Stock with associated Warrants (collectively, the “Tranche 2 Financing”);

WHEREAS, as a condition of the recommendation of the Special Committee of the Board of Directors of IEA (the “Special Committee”) in favor of the Tranche 2 Financing, the parties agreed that the Company would effectuate a rights offering and entered into that certain Rights Offering Agreement, dated as of October 29, 2019 (the “Rights Offering Agreement”), by and among the Company, Ares and Oaktree; and 

WHEREAS, the parties desire to make certain amendments to the terms of the Rights Offering Agreement. 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows.

Agreement
    
		
	1.
	Capitalized Terms. Capitalized terms used herein without definition shall have the meaning ascribed to such terms in the Rights Offering Agreement. 

		
	2.
	Amendments. Exhibit A to the Rights Offering Agreement is hereby amended and restated in its entirety as Exhibit A attached to this Amendment.  

		
	3.
	Special Committee. No amendment, modification or waiver of any provision of this Amendment shall be made by the Company under or with respect to this Amendment without first obtaining the approval of the Special Committee. In addition to any approval of the Board, and without limiting the other requirements set forth herein, the prior approval of the Special Committee shall be required for the Company to take any action that would breach in any material respect the Company’s obligations under this Amendment and/or prevent or materially delay the consummation of the transactions contemplated thereby and hereby and, in the event any such action is taken without the prior approval of the Special Committee, such action shall in no event be deemed to be a breach or violation of this Amendment for any purpose hereof with respect to Ares or Oaktree.

		
	4.
	Representations. Each party hereto represents and warrants to the other parties hereto that such party has all requisite power and authority to enter into, execute, and deliver this Amendment, that this Amendment has been duly and validly authorized by all requisite action to enter into, execute, and deliver this Amendment and to perform his or its obligations hereunder and that this Amendment constitutes its valid, legal and binding obligations enforceable in accordance with, its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws limiting creditors’ rights generally or by equitable remedies (regardless of whether enforceability is considered in a proceeding at law or in equity).

		
	5.
	Governing Law. This Amendment will be governed by Delaware Law without regard to the conflicts of law principles thereof. All actions and proceedings arising out of or relating to this Amendment shall be heard and determined in the Court of Chancery of the State of Delaware, and the parties hereby irrevocably submit to the exclusive jurisdiction of 

such court (and, in the case of appeals, appropriate appellate courts therefrom) in any such action or proceeding, irrevocably waive the defense of an inconvenient forum to the maintenance of any such action or proceeding.

		
	6.
	Jointly Drafted; Advice of Counsel. The words used in this Amendment shall be deemed words chosen by the parties to express their mutual intent, and no rule of construction against any party shall apply to any term or provision of this Amendment. This Amendment is entered into by all parties hereto freely and voluntarily, and with and upon the advice of counsel. All parties hereto warrant that they have been fully advised by their attorneys with respect to the advisability of executing this Amendment and with respect to the releases and other matters contained herein.

		
	7.
	Counterparts and Facsimiles. This Amendment may be executed in counterparts, which collectively shall be deemed an original and which, taken together, shall constitute one and the same instrument. Electronic or facsimile copies of counterparts of this Amendment shall have the full force and effect as an original.

		
	8.
	Entire Agreement, Modifications, Etc. This Amendment and the Rights Offering Agreement, as amended, constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all previous negotiations, agreements, understandings or commitments concerning the subject matter hereof, and shall not be released, discharged, changed, waived, or modified except by instruments in writing signed by each of the parties. This Amendment shall be binding upon and inure to the benefit of the parties hereto and upon their respective successors and permitted assigns. The parties acknowledge that no person or entity, nor an agent or attorney of any person or entity, has made any promises, representations, or warranties whatsoever, express or implied, which are not expressly contained in the Rights Offering Agreement or this Amendment, and the parties further acknowledge that they have not entered into this Amendment in reliance upon any collateral promise, representation, warranty, or in reliance upon any belief as to any fact or matter not recited in the Rights Offering Agreement or this Amendment.

		
	9.
	Benefits. Nothing in this Amendment, express or implied, is intended or shall be construed to give any party other than the parties to this Amendment or their respective successors or assigns any legal or equitable right, remedy or claim under or in respect of any Amendment or any provision contained herein. Notwithstanding the foregoing, the Public Stockholders shall be express third-party beneficiaries of this Amendment.

[Signature page follows]

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

IEA:

Infrastructure and Energy Alternatives, Inc.

By:    /s/ John P. Roehm                    
Name: John P. Roehm
Title:   Chief Executive Officer

 
ARES:

Ares Special Situations Fund IV, L.P.
By: ASSF Management IV, L.P., its general partner
By: ASSF Management IV GP LLC, its general partner

By:    /s/ Aaron Rosen                    
Name: Aaron Rosen
Title:   Partner 

ASOF Holdings I, L.P.
By: ASOF Management, L.P., its general partner
By: ASOF Management GP LLC, its general partner

By:    /s/ Aaron Rosen                   
Name: Aaron Rosen
Title:   Partner

Notice Information:

c/o Ares Management LLC
2000 Avenue of the Stars, 12th Floor
Los Angeles, CA 90067
Email: sgraves@aresmgmt.com
PEGeneralCounsel@aresmgmt.com
Attention: Scott Graves

OAKTREE:

INFRASTRUCTURE AND ENERGY ALTERNATIVES, LLC,

By:    /s/ Ian Schapiro                    
Name: Ian Schapiro
Title:   Authorized Signatory 

By:    /s/ Peter Jonna                    
Name: Peter Jonna
Title:   Authorized Signatory

OT POF IEA Preferred B Aggregator,
L.P.

By: OT POF IEA Preferred B Aggregator GP, LLC
Its: General Partner

By: Oaktree Power Opportunities Fund III Delaware, L.P.
Its: Managing Member

By: Oaktree Power Opportunities Fund III GP, L.P.
Its: General Partner

By: Oaktree Fund GP, LLC
Its: General Partner

By: Oaktree Fund GP I, L.P.
Its: Managing Member

By:    /s/ Ian Schapiro                    
Name: Ian Schapiro
Title:   Authorized Signatory 

By:    /s/ Peter Jonna                    
Name: Peter Jonna
Title:   Authorized Signatory

Oaktree Power Opportunities Fund III
Delaware, L.P.

By: Oaktree Power Opportunities Fund III GP, L.P.
Its: General Partner

By: Oaktree Fund GP, LLC
Its: General Partner

By: Oaktree Fund GP I, L.P.

By:    /s/ Ian Schapiro                    
Name: Ian Schapiro
Title:   Authorized Signatory 

By:    /s/ Peter Jonna                    

Name: Peter Jonna
Title:   Authorized Signatory

Notice Information:

333 South Grand Avenue, 28th Floor
Los Angeles, CA 90071
Email: ischapiro@oaktreecapital.com
pjonna@oaktreecapital.com
Attention: Ian Schapiro
Peter Jonna

EXHIBIT A
RIGHTS OFFERING

	
		
	Aggregate Amount of Securities Offered
	The Rights Offering will entitle the Public Stockholders to purchase up to an aggregate of 15,000 shares of Series B-3 Preferred Stock and 515,625 warrants (the terms of such warrants will be substantially consistent with the material terms in the Exhibit to the Tranche 2 ECA (but without the private placement legend or section 8 thereof) at an aggregate price of $15,000,000.

	Record Date
	One Right to subscribe for one Unit (as defined below) will be distributed to Public Stockholders as of a record date (the “Record Date”) to be determined by the IEA Board of Directors, with the consent of the Special Committee, for each share of common stock held on the Record Date. 

	Rights Offering Period
	20 business days, or such longer period as may be approved by the Special Committee.

	Minimum Subscription Requirement
	Minimum subscription requirement (the “Minimum Subscription Requirement”): $50,000.

	Basic Subscription Right; Minimum Subscription Privilege
	Each Right will entitle the Public Stockholder that is a holder thereof to subscribe for one unit (a “Unit”) consisting of one share of Series B-3 Preferred Stock and 34.375 warrants (subject to rounding at settlement) to purchase common stock at a price of $1,000.00 per Unit (the “Basic Subscription Right”).

In addition, each Public Stockholder shall have the right (the “Minimum Subscription Privilege”) to purchase a minimum of $50,000 of Units to satisfy the Minimum Subscription Requirement, if such amount is greater than the amount of Units that could have been purchased based on the Rights distributed to such Public Stockholder, subject to the reduction and other limitations described below. 

Units will be issued in their component parts upon settlement of subscriptions. 

	Over-Subscription Privilege
	Each Right will contain an Over-Subscription Privilege (the “Over-Subscription Privilege”), which will permit each Public Stockholder that is a holder thereof who has exercised its Minimum Subscription Privilege or Basic Subscription Right in full to purchase any unsubscribed portion of the aggregate Amount of Securities Offered on a pro rata basis, subject to the Maximum Subscription Limitation (as defined herein).

	Overall Limitation
	The maximum number of Units that a subscriber may purchase through exercising its Basic Subscription Rights, Minimum Subscription Privilege and Over-Subscription Privilege is 2,250 Units, or $2.25 million in the aggregate (the “Maximum Subscription Limitation”).

	
		
	Pro Ration
	If aggregate exercises of Basic Subscription Rights, Minimum Subscription Privileges and Over-Subscription Privileges do not exceed 15,000 Units in the aggregate, then subscribers will be allocated the number of Units for which it has subscribed pursuant to its Basic Subscription Rights, Minimum Subscription Privileges and Over-Subscription Privileges (subject to the Maximum Subscription Limitation).

If aggregate exercises of Basic Subscription Rights and Minimum Subscription Privileges do not exceed 15,000 Units, but aggregate exercises of Over-Subscription Privileges would cause the aggregate number of Units subscribed for to exceed 15,000 Units, subscribers will be allocated the number of Units for which it has exercised its Basic Subscription Rights and Minimum Subscription Privileges (subject to the Maximum Subscription Limitation). Following such allocation, Over-Subscription Requests will be partially honored and subscribers will be allocated the remaining number of Units up to the aggregate offering size of 15,000 Units pro-rata among the subscribers exercising their Over-Subscription Privilege based on the number of Units subscribed by such holders under their Basic Subscription Rights and Minimum Subscription Privileges. If this pro-rata allocation results in any subscriber receiving a greater number of Units than the subscriber subscribed for pursuant to the exercise of the Over-Subscription Privilege (or is otherwise limited by the Maximum Subscription Limitation), then such subscriber will be allocated only that number of Units for which the subscriber made an Oversubscription Request (or for which such subscriber is otherwise limited by the Maximum Subscription Limitation).

If aggregate exercises of Basic Subscription Rights and Minimum Subscription Privileges exceed 15,000 Units, Over-Subscription Requests will not be honored due to the maximum aggregate offering size of 15,000 Units. Units subscribed for in the Basic Subscription Rights and Minimum Subscription Privileges will be reduced on a pro rata basis (but not below one Unit) based on the number of Units subscribed by such holders under their Basic Subscription Rights and Minimum Subscription Privileges until the aggregate offering size is reduced to 15,000 Units. For any reduction under this paragraph, the Minimum Subscription Requirement shall no longer apply.

	Transferability
	The Rights will be fully transferrable by the holder subject to the applicable holder’s compliance with federal and state securities laws; however, the Company need not list the Rights for trading on any securities exchange.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00303-of-00352.parquet"}]]