Exhibit 10.1

Execution Version

AMENDMENT NO. 1

Dated as of October 10, 2013

to

CREDIT AGREEMENT

Dated as of February 6, 2013

THIS AMENDMENT NO. 1 (this “Amendment”) is made as of October 10, 2013 by and
among API Technologies Corp., a Delaware corporation (the “Borrower”), the
Lenders party hereto and Guggenheim Corporate Funding, LLC, as Agent for each
member of the Lender Group (in such capacity, together with its successors and
assigns, the “Agent”), under that certain Credit Agreement, dated as of
February 6, 2013, by and among the Borrower, the Lenders and the Agent (as
amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”). Capitalized terms used herein and not otherwise defined
herein shall have the respective meanings given to them in the Credit Agreement.

WHEREAS, the Borrower has requested that the Lenders and the Agent agree to
certain amendments to the Credit Agreement;

WHEREAS, the Borrower, the Lenders party hereto and the Agent have agreed to
such amendments on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the premises set forth above, the terms and
conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Borrower, the
Lenders party hereto and the Agent hereby agree to enter into this Amendment.

1. Amendments to the Credit Agreement. Effective as of the date of satisfaction
of the conditions precedent set forth in Section 2 below, the parties hereto
agree that the Credit Agreement is hereby amended as follows:

(a) The definition of “Applicable Margin” set forth in Schedule 1.1 of the
Credit Agreement is restated in its entirety as follows:

“Applicable Margin” means a percentage per annum equal to in the case of any
portion of the Term Loan maintained as (i) Base Rate Loans, 6.50% and (ii) LIBOR
Rate Loans, 7.50%.

(b) The definition of “LIBOR Rate” set forth in Schedule 1.1 of the Credit
Agreement is restated in its entirety as follows:

“LIBOR Rate” means the rate per annum rate determined by Agent pursuant to the
following formula:

 

LIBOR Rate =    LIBOR Base Rate                                1.00-LIBOR
Reserve Percentage

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Notwithstanding the foregoing, in no event shall the LIBOR Rate be less than
1.50%.

(c) The definition of “Prepayment Premium” set forth in Schedule 1.1 of the
Credit Agreement is restated in its entirety as follows:

“Prepayment Premium” means with respect to prepayment pursuant to
Section 2.4(d), Section 2.4(e)(i), Section 2.4(e)(ii) and Section 2.4(e)(iv) of
the Agreement:

(a) from and after the Amendment No. 1 Effective Date through the first
anniversary of the Amendment No. 1 Effective Date, 3.0% of the Term Loan Amount
prepaid; provided, however, any prepayment in connection with a Change in
Control or a sale of all or substantially all of the assets of Borrower and its
Subsidiaries prior to the six month anniversary of the Amendment No. 1 Effective
Date, such Prepayment Premium will be 1.5% of the Term Loan Amount prepaid (for
the avoidance of doubt, the Prepayment Premium for sales of assets that do not
constitute all or substantially all of the assets of Borrower and its
Subsidiaries shall be 0.0% of the Term Loan Amount prepaid);

(b) after the first anniversary of the Amendment No. 1 Effective Date through
the second anniversary of the Amendment No. 1 Effective Date, 2.0% of the Term
Loan Amount prepaid;

(c) after the second anniversary of the Amendment No. 1 Effective Date through
the third anniversary of the Amendment No. 1 Effective Date, 1.0% of the Term
Loan Amount prepaid; and

(d) after the third anniversary of the Amendment No. 1 Effective Date, 0.0% of
the Term Loan Amount prepaid.

(d) Schedule 1.1 of the Credit Agreement is amended to include the following new
definition alphabetically therein:

“Amendment No. 1 Effective Date” means October 10, 2013.

(e) Section 2.4(f) of the Credit Agreement shall be restated in its entirety as
follows:

Application of Payments. In connection with any prepayment pursuant to
Section 2.4(d), Section 2.4(e)(i), Section 2.4(e)(ii) (excluding (x) prepayments
resulting from casualty losses or condemnations, and (y) prepayments resulting
from sales of assets that do not constitute all or substantially all of the
assets of Borrower and its Subsidiaries) or Section 2.4(e)(iv), Borrower shall
pay (or cause to be paid) the relevant Prepayment Premium applicable to the
principal amount repaid. Each such repayment (net of any Prepayment Premium)
shall be applied in the manner set forth in Section 2.4(b). Each such prepayment
of the Term Loan shall be applied ratably against the remaining installments of
principal of the Term Loan (for the avoidance of doubt, any amount that is due
and payable on the Maturity Date shall constitute an installment).

(f) Section 2.10(b) of the Credit Agreement shall be deleted in its entirety.

 

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(g) Section 7(a) of the Credit Agreement shall be restated in its entirety as
follows:

Interest Coverage Ratio. Have an Interest Coverage Ratio, measured on a
quarter-end basis, of at least the required amount set forth in the following
table for the applicable period set forth opposite thereto:

 

Applicable Ratio

  

Applicable Period

1.50:1.00    For the one quarter period ending on February 28, 2013 1.70:1.00   
For the two quarter period ending on May 31, 2013 1.90:1.00    For the three
quarter period ending on August 31, 2013 1.90:1.00    For the Test Period ending
on November 30, 2013 2.30.1.00    For the Test Period ending on February 28,
2014 2.80.1.00    For the Test Period ending on May 31, 2014 3.00.1.00    For
the Test Period ending on August 31, 2014 3.00.1.00    For the Test Period
ending on November 30, 2014 3.10.1.00    For the Test Period ending on
February 28, 2015 3.10.1.00    For the Test Period ending on May 31, 2015
3.20.1.00    For the Test Period ending on August 31, 2015 3.25.1.00    For the
Test Period ending on November 30, 2015 3.25:1.00    For the Test Period ending
on February 29, 2016 3.40:1.00    For the Test Period ending on May 31, 2016
3.40:1.00    For the Test Period ending on August 31, 2016 3.50:1.00    For the
Test Period ending on November 30, 2016 3.75:1.00    For the Test Period ending
on February 28, 2017 3.75:1.00    For the Test Period ending on May 31, 2017
3.75:1.00    For the Test Period ending on August 31, 2017 3.75:1.00    For the
Test Period ending on November 30, 2017 3.75:1.00    For the Test Period ending
on February 28, 2018

 

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(h) Section 7(c) of the Credit Agreement restated in its entirety as follows:

Leverage Ratio. Have a Leverage Ratio, measured on a quarter-end basis, of not
greater than the applicable ratio set forth in the following table for the
applicable date set forth opposite thereto:

 

Applicable Ratio

  

Test Period Ending

5.65:1.00    February 28, 2013 5.65:1.00    May 31, 2013 5.50:1.00    August 31,
2013 5.50:1.00    November 30, 2013 4.50:1.00    February 28, 2014 4.30:1.00   
May 31, 2014 4.30:1.00    August 31, 2014 4.30:1.00    November 30, 2014
4.30:1.00    February 28, 2015 4.20:1.00    May 31, 2015 4.20:1.00    August 31,
2015 4.20:1.00    November 30, 2015 4.00:1.00    February 29, 2016 4.00:1.00   
May 31, 2016 4.00:1.00    August 31, 2016 4.00:1.00    November 30, 2016
3.80:1.00    February 28, 2017 3.80:1.00    May 31, 2017 3.60:1.00    August 31,
2017 3.60:1.00    November 30, 2017 3.40:1.00    February 28, 2018

 

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2. Conditions of Effectiveness. The effectiveness of this Amendment is subject
to the conditions precedent that:

(a) The Agent shall have received counterparts of this Amendment duly executed
by the Borrower, each of the Lenders and the Agent.

(b) The Agent shall have received counterparts of the Consent and Reaffirmation
attached as Exhibit A hereto duly executed by each Loan Party.

(c) The Agent shall have received, for its own account and for the account of
each Lender, an amendment fee equal to 2.0% of the Term Loan Amount.

(d) The Agent shall have received copies of each Loan Party’s Governing
Documents, as amended, modified, or supplemented prior to the Amendment No. 1
Effective Date, certified by the Secretary or other authorized officer of such
Loan Party; provided, however, that such certificate may certify that the
Governing Documents of such Loan Party have not changed since delivered to the
Agent on the Closing Date.

(e) To the extent applicable, Agent shall have received a certificate of status
with respect to the Borrower, dated within thirty (30) days of the Amendment
No. 1 Effective Date, such certificate shall (i) be issued by the appropriate
officer of the Borrower’s jurisdiction of organization, and (ii) indicate that
the Borrower is in good standing in such jurisdiction.

(f) The Loan Parties shall have paid all Lender Group Expenses incurred in
connection with the transactions evidenced by this Amendment.

(g) The Administrative Agent shall have received satisfactory evidence that the
ABL Lenders and ABL Agent have consented to this Amendment pursuant to the terms
of the Intercreditor Agreement.

3. Representations and Warranties of the Borrower. The Borrower hereby
represents and warrants as follows:

(a) This Amendment and the Credit Agreement as amended hereby constitute legal,
valid and binding obligation of such Person enforceable against such Person in
accordance with its respective terms, except as the same may be limited by
bankruptcy, insolvency, reorganization, moratorium and other similar laws
affecting the rights of creditors generally and the availability of equitable
remedies for the enforcement of certain obligations (other than the payment of
principal) contained herein or therein and as may be limited by equitable
principles generally.

(b) As of the date hereof and after giving effect to the terms of this
Amendment, (i) no Default or Event of Default shall have occurred and be
continuing and (ii) the representations and warranties of the Loan Parties set
forth in the Credit Agreement, as amended hereby, are true and correct as of the
date hereof.

4. Reference to and Effect on the Credit Agreement and the other Loan Documents.

(a) Upon the effectiveness hereof, each reference to the Credit Agreement in the
Credit Agreement or any other Loan Document shall mean and be a reference to the
Credit Agreement as amended hereby.

 

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(b) The Credit Agreement, the Loan Documents and all other documents,
instruments and agreements executed and/or delivered in connection therewith
shall remain in full force and effect and are hereby ratified and confirmed.

(c) The execution, delivery and effectiveness of this Amendment shall not
operate as a waiver of any right, power or remedy of the Agent or the Lenders,
nor constitute a waiver of any provision of the Credit Agreement, the Loan
Documents or any other documents, instruments and agreements executed and/or
delivered in connection therewith.

(d) Each of this Amendment and the Consent and Reaffirmation attached as Exhibit
A hereto shall constitute Loan Documents.

5. Governing Law. This Amendment shall be construed in accordance with and
governed by the law of the State of New York.

6. Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

7. Counterparts. This Amendment may be executed by one or more of the parties
hereto on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument.
Signatures delivered by facsimile or PDF shall have the same force and effect as
manual signatures delivered in person.

[Signature Pages Follow]

 

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IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year
first above written.

 

API Technologies Corp., as the Borrower By:  

/s/ Bel Lazar

Name:   Bel Lazar Title:   President and CEO

 

Signature Page to Amendment No. 1

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Guggenheim Corporate Funding, LLC, individually as the Agent By:  

/s/ William R. Hagner

Name:   William Hagner Title:   Senior Managing Director

 

Signature Page to Amendment No. 1

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5180 CLO LP, as a Lender By:   Guggenheim Partners Investment Management, LLC,
as Collateral Manager By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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Blue Cross and Blue Shield of Florida, Inc., as a Lender By:  
Guggenheim Partners Investment Management, LLC, as Manager By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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Security Benefit Life Insurance Company, as a Lender By:  
Guggenheim Partners Investment Management, LLC, as Sub-Adviser By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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Guggenheim Life and Annuity Company, as a Lender By:  
Guggenheim Partners Investment Management, LLC, as Advisor By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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Indiana University Health, Inc., as a Lender By:  
Guggenheim Partners Investment Management, LLC, as Manager By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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Mercer Field CLO LP, as a Lender By:  
Guggenheim Partners Investment Management, LLC, as Collateral Manager By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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Guggenheim Private Debt Fund Note Issuer, LLC, as a Lender By:  
Guggenheim Partners Investment Management, LLC, as Manager By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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NZC Guggenheim Master Fund Limited, as a Lender By:  
Guggenheim Partners Investment Management, LLC, as Manager By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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Stitching PPGM Depository Acting in its capacity as depository of PGGM High
Yield Fund, as a Lender By:   Guggenheim Partners Investment Management, LLC, as
Manager By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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High-Yield Loan Plus Master Segregated Portfolio Guggenheim High-Yield Plus
Master Fund SPC, On behalf of and for the account of the High-Yield Loan Plus
Master Segregated Portfolio, as a Lender By:  
Guggenheim Partners Investment Management, LLC, as Manager By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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CLC Leveraged Loan Trust By: Challenger Life Nominees PTY Limited as Trustee, as
a Lender By:   Guggenheim Partners Investment Management, LLC, as Manager By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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Renaissance Reinsurance Ltd., as a Lender By:  
Guggenheim Partners Investment Management, LLC, as Manager By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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Western Regional Insurance Company, Inc., as a Lender By:  
Guggenheim Partners Investment Management, LLC, as Investment Manager By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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DaVinci Reinsurance Ltd., as a Lender By:  
Guggenheim Partners Investment Management, LLC, as Manager By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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EquiTrust Life Insurance Company, as a Lender By:  
Guggenheim Partners Investment Management, LLC, as Advisor By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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Wake Forest University, as a Lender By:  
Guggenheim Partners Investment Management, LLC, as Advisor By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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The Wilshire Institutional Master Fund SPC – Guggenheim Alpha Segregated Port,
as a Lender By:   Guggenheim Partners Investment Management, LLC By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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Guggenheim Private Debt Master Fund, LLC, as a Lender By:  
Guggenheim Partners Investment Management, LLC, as Investment Manager By:  

/s/ William R. Hagner

Name:   William R. Hagner Title:   Attorney-in-Fact

 

Signature Page to Amendment No. 1

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Guggenheim U.S. Loan Fund Guggenheim U.S. Loan Fund, a sub fund of Guggenheim
Qualifying Investor Fund Plc By: For and on behalf of BNY Mellon Trust Company
(Ireland) Limited under Power of Attorney, as a Lender By:  

/s/ Brian Leyden

Name:   Brian Leyden Title:   Assistant Manager

 

Signature Page to Amendment No. 1

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Guggenheim U.S. Loan Fund II Guggenheim U.S. Loan Fund II, a sub fund of
Guggenheim Qualifying Investor Fund Plc By: For and on behalf of BNY Mellon
Trust Company (Ireland) Limited under Power of Attorney, as a Lender By:  

/s/ Brian Leyden

Name:   Brian Leyden Title:   Assistant Manager

 

Signature Page to Amendment No. 1

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Guggenheim U.S. Loan Fund III Guggenheim U.S. Loan Fund III, a sub fund of
Guggenheim Qualifying Investor Fund Plc By: For and on behalf of BNY Mellon
Trust Company (Ireland) Limited under Power of Attorney, as a Lender By:  

/s/ Brian Leyden

Name:   Brian Leyden Title:   Assistant Manager

 

Signature Page to Amendment No. 1

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Guggenheim U.S. Loan and Bond Fund IV Guggenheim U.S. Loan and Bond Fund IV, a
sub fund of Guggenheim Qualifying Investor Fund Plc By: For and on behalf of BNY
Mellon Trust Company (Ireland) Limited under Power of Attorney, as a Lender By:
 

/s/ Brian Leyden

Name:   Brian Leyden Title:   Assistant Manager

 

Signature Page to Amendment No. 1

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Tennenbaum Opportunities Fund VI, LLC, as a Lender By:  

/s/ Phil Tseng

Name:   Phil Tseng Title:   Managing Partner

 

 

Signature Page to Amendment No. 1

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Tennenbaum Opportunities Partners V, LP, as a Lender By:  

/s/ Phil Tseng

Name:   Phil Tseng Title:   Managing Partner

 

Signature Page to Amendment No. 1

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AIC Company Limited, as a Lender By:  

Rob Stobo

Name:   Rob Stobo Title:   Portfolio Manager

 

Signature Page to Amendment No. 1