Attached files
| file | filename |
|---|---|
| 10-K - FORM 10-K FY09 - GSE SYSTEMS INC | form10-k.htm |
| EX-31.1 - EXHIBIT 31.1 CERT CEO - GSE SYSTEMS INC | exh31_1.htm |
| EX-31.2 - EXHIBIT 31.2 CERT CFO - GSE SYSTEMS INC | exh31_2.htm |
| EX-24.1 - EXHIBIT 24.1-POA - GSE SYSTEMS INC | exh24_1.htm |
| EX-32.1 - EXHIBIT 32.1 906 - GSE SYSTEMS INC | exh32_1.htm |
| EX-21.1 - EXHIBIT 21.1 SUBSIDIARIES - GSE SYSTEMS INC | exh21-1subs.htm |
| EX-23.1 - EXHIBIT 23.1 KPMG CONSENT - GSE SYSTEMS INC | exh23_1consent.htm |
Exhibit 10.30
Bank of
America
March 10,
2010
Mr.
Jeffery G. Hough
GSE
Systems, Inc.
GSE Power
Systems, Inc.
Senior
Vice President & CFO
1332
Londontown Blvd.
Suite
200
Sykesville,
MD 21784
Re: Waiver
of Certain Financial Covenant Violations
Dear
Jeff:
Bank of
America, N.A (the “Bank”) and GSE Systems, Inc. (“GSE”) and GSE Power Systems,
Inc. (“Power”), as co-borrowers (GSE and Power, collectively, the “Borrowers”)
entered into that certain Loan Agreement (Ex-Im Bank-Guaranteed Transaction
Specific Revolving Credit Facility) dated as of March 28, 2008, as amended (the
“Ex-Im Line Loan Agreement”), that certain Loan Agreement (Domestic Revolving
Line of Credit) dated as of March 28, 2008, as amended (the “Domestic Revolving
Line of Credit) dated as of March 28, 2008, as amended (the “Domestic Line Loan
Agreement”, and together with the Ex-Im Line Loan Agreement, the “Loan
Agreements”), and related loan and security documents of even date therewith
(collectively, including the Loan Agreements, the “Loan
Documents”).
The Loan
Agreements each provide that GSE must maintain on a consolidated basis (the
“Financial Covenants”): a Debt Service Coverage Ratio of at least 1.25 to 1.00
and a Funded Debt to EBITDA Ratio not exceeding 2.50 to 1.00. As of
December 31, 2009, the Borrowers were in violation of the Financial Covenants as
follows: the actual Debt Service Coverage Ratio was approximately
(1,581.97) to 1.00 and the actual Funded Debt to EBITDA Ratio was approximately
2.74 to 1.00.
The
Borrowers have requested that the Bank waive the above-referenced violations of
the Financial Covenants, and the Bank has agreed to waive such violations of the
Financial Covenants as of December 31, 2009 in consideration of a waiver fee of
$5,000.00. This limited waiver shall be effective with respect to the
Financial Covenants only for the periods specified above and shall not
constitute a waiver for any subsequent periods or of any other requirement of
the Loan Documents. This letter shall in no way be construed as a
novation, an accord and satisfaction of any obligation or liability of the
Borrowers to the Bank, or as a modification to the Loan
Documents. Except as expressly set forth in this letter, all terms,
conditions, rights and remedies contained in the Loan Documents shall remain in
full force and effect.
Please
call with any questions.
Sincerely,
/s/Kevin
Mahon
Kevin
Mahon
Senior
Vice President