RATIFICATION OF GUARANTY (Ex-Im Bank-Guaranteed Transaction Specific Revolving
Line of Credit)
THIS RATIFICATION OF GUARANTY (this
as of March 29, 2010, is made by each of the undersigned guarantors (each, a
collectively, the “Guarantors”) in favor of BANK
OF AMERICA, N.A., its successors and assigns (“Bank”).
Guarantor executed a separate Continuing and Unconditional Guaranty (Ex-Im
Bank-Guaranteed Transaction Specific Revolving Line of Credit) dated as of March
28, 2008, (each, a “Guaranty”) in favor of Bank in
connection with that certain Loan Agreement (Ex-Im Bank-Guaranteed Transaction
Specific Revolving Line of Credit) dated as of March 28, 2008, as amended by
that certain First Amendment to Loan Agreement (Ex-Im Bank-Guaranteed
Transaction Specific Revolving Line of Credit) dated as of May 5, 2009 (the
“Loan Agreement”) by and
among GSE Systems, Inc., a Delaware corporation, GSE Power Systems, Inc., a
Delaware corporation (collectively, “Borrower”), and
has requested that Bank amend the Loan Agreement to increase, from $3,500,000 to
$5,000,000, and renew the revolving line of credit established by the Loan
Agreement. Bank has agreed to so amend the Loan Agreement, subject
to, among other things, Guarantors providing to Bank the representations,
assurances and other agreements hereinafter set forth.
connection with the foregoing, Bank and Borrower shall execute a Second
Amendment to Loan Agreement (Ex-Im Bank-Guaranteed Transaction Specific
Revolving Line of Credit) of even date herewith (the “Second Amendment”) to evidence
the modification of the revolving line of credit.
NOW, THEREFORE, for Ten Dollars
($10.00) and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, and because the Guarantors will benefit from
some of the changes to the Loan Agreement, each Guarantor does hereby agree as
Recitals hereinabove contained are true and correct and are made a part
acknowledges receipt of the Second Amendment and agrees,
ratifies and confirms that such Guarantor’s Guaranty remains in full force and
effect with respect to the Loan Agreement, as amended by the Second
represents and warrants unto Bank that (i) such Guarantor’s Guaranty and all
other documents executed by Guarantor in connection therewith are valid and
binding obligations of Guarantor, enforceable in accordance with their terms;
(ii) all of the terms, covenants, conditions, representations, warranties and
agreements contained in such Guarantor’s Guaranty are hereby ratified and
confirmed in all respects; and (iii) no oral representations, statements, or
inducements have been made by Bank with respect to the Second Amendment, this
Ratification or such Guarantor’s Guaranty.
does not now have, nor had at any prior time, any defenses (including, without
limitation, the defense of usury), claims, counterclaims, cross-actions or
equities or rights of rescission, setoff, abatement or diminution, with respect
to the Loan Agreement, such Guarantor’s Guaranty or any other document executed
in connection therewith, or the enforcement of Bank's rights thereunder, and
Guarantor further waives and releases any and all such defenses, claims,
counterclaims, cross-actions and equities, and rights of rescission, set-off,
abatement and diminution with respect thereto.
IN WITNESS WHEREOF, each of the
undersigned Guarantors has caused this Ratification to be made as of the date
first written above.
By: /s/ Jeffery G.
PROCESS SOLUTIONS, INC.
By: /s/ Jeffery G.