EX-10.3





 EXHIBIT 10.3 

 
 



 
 LOAN AGREEMENT 

This Loan Agreement (“Agreement”) dated as of June 1, 2021, is between Bank of America, N.A. (the “Bank”) and
Graham Corporation (the “Borrower”). 

 

	 1.	 definitions 




In addition to the terms which are defined elsewhere in this Agreement, the following terms have the meanings indicated for the purposes of
this Agreement: 
 1.1    “Beneficial Ownership Certification” means a certification regarding
beneficial ownership required by the Beneficial Ownership Regulation. 
 1.2    “Beneficial Ownership
Regulation” means 31 C.F.R. § 1010.230. 
 1.3    “Guarantor” means any person, if any,
providing a guaranty with respect to the obligations hereunder. 
 1.4    “Obligor” means the Borrower
and any Guarantor. 
 1.5    “Pledgor” means any person, if any, providing a pledge of collateral with
respect to the obligations hereunder. 
 1.6    “Related Party” means each of the Obligors and their
respective subsidiaries. 
  

	 2.	 facility no. 1 line of credit amount and terms 




 

	A.	 Line of Credit Amount. 



 

	(a)	 During the availability period described below, the Bank will provide a line of credit to the Borrower (the
“Line of Credit”). The amount of the Line of Credit (the “Facility No. 1 Commitment”) is Thirty Million and 00/100 Dollars ($30,000,000). The Borrower shall have the option to request an increase to the Facility No. 1
Commitment by an additional Ten Million and 00/100 Dollars ($10,000,000) which increase may be approved by the Bank in its sole discretion. 


  

	(b)	 This is a revolving line of credit. During the availability period, the Borrower may repay principal amounts
and reborrow them. 


  

	(c)	 The Borrower agrees not to permit the principal balance outstanding to exceed the Facility No. 1
Commitment. If the Borrower exceeds this limit, the Borrower will immediately pay the excess to the Bank upon the Bank’s demand. 


  

	B.	 Availability Period. 



The Line of Credit is available between the date of this Agreement and June 1, 2026, or such earlier date as the availability may
terminate as provided in this Agreement (the “Facility No. 1 Expiration Date”). 

  
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	C.	 Repayment Terms. 



 

	(a)	 The Borrower will pay interest on July 1, 2021, and then on the same day of each month thereafter until
payment in full of all principal outstanding under this facility. The amount of each interest payment shall be the amount of accrued interest on the Line of Credit as of the interest payment date or such earlier accrual date as indicated on the
billing statement for such interest payment. 


  

	(b)	 The Borrower will repay in full all principal, interest or other charges outstanding under this Agreement no
later than the Facility No. 1 Expiration Date. 


  

	(c)	 The Borrower may prepay the Line of Credit in full or in part at any time. The prepayment will be applied to
the most remote payment of principal due under this Agreement. 


  

	D.	 Interest Rate. 



 

	(a)	 During the availability period, the interest rate is a rate per year equal to the sum of (i) the
greater of the BSBY Rate (Adjusted Periodically) or the Index Floor, plus (ii) 1.5 percentage point(s). For the purposes of this paragraph, “Index Floor” means 0 percent. 



 

	(b)	 The interest rate will be adjusted on July 1, 2021 (the “Initial Adjustment Date”) and remain
fixed until the first day of each succeeding month (each an “Adjustment Date”). If the Adjustment Date in any particular month would otherwise fall on a day that is not a banking day then, at the Bank’s option, the Adjustment Date for
that particular month will be the first banking day immediately following thereafter. 


  

	(c)	 The BSBY Rate (Adjusted Periodically) is a rate of interest equal to the rate per annum equal to the BSBY
Screen Rate as determined for each Adjustment Date two (2) Business Days prior to the Adjustment Date (for delivery on the first day of such interest period) with a term of one month; provided that if such rate is not published on such
determination date then the rate will be the BSBY Screen Rate on the first Business Day immediately prior thereto. “BSBY Screen Rate” means the Bloomberg Short-Term Bank Yield Index rate (“BSBY”) administered by Bloomberg Index
Services Limited and published on the applicable Reuters screen page (or such other commercially available source providing such quotations as may be designated by the Bank from time to time). If the BSBY Rate is not available at such time for any
reason or the Bank makes the determination to incorporate or adopt a new interest rate to replace the BSBY Rate in credit agreements, then the Bank may replace the BSBY Rate with an alternate interest rate and adjustment, if applicable, as
reasonably selected by the Bank, giving due consideration to any evolving or then existing conventions for such interest rate and adjustment (any such successor interest rate, as adjusted, the “Successor Rate”). In connection with the
implementation of the Successor Rate, the Bank will have the right, from time to time, in good faith to make any conforming, technical, 



  
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administrative or operational changes to this Agreement as may be appropriate to reflect the adoption and administration thereof and, notwithstanding anything to the contrary herein or in any
other loan document, any amendments to this Agreement implementing such conforming changes will become effective upon notice to the Borrower without any further action or consent of the other parties hereto. A “Business Day” is a day other
than a Saturday or a Sunday on which banks are open for business in the State of New York. If at any time the BSBY Rate (Adjusted Periodically) is less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.



  

	(d)	 Each prepayment of an amount bearing interest at the rate provided by this paragraph, whether voluntary, by
reason of acceleration or otherwise, will be accompanied by the amount of accrued interest on the amount prepaid, and a prepayment fee as described below. A “prepayment” is a payment of an amount on a date other than an Adjustment Date.



  

	(e)	 The prepayment fee shall be in an amount sufficient to compensate the Bank for any loss, cost or expense
incurred by it as a result of a prepayment on a date other than an Adjustment Date, including any loss of anticipated profits and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain the amount prepaid
or from fees payable to terminate the deposits from which such funds were obtained. The Borrower shall also pay any customary administrative fees charged by the Bank in connection with the foregoing. 



 

	E.	 Letters of Credit. 



 

	(a)	 As a subfacility under the Line of Credit, during the availability period, the Bank agrees from time to time
to issue or cause an affiliate to issue commercial and standby letters of credit for the account of the Borrower and/or its subsidiaries (each a “Letter of Credit,” and collectively “Letters of Credit”); provided however,
that the aggregate drawn and undrawn amount of all outstanding Letters of Credit shall not at any time exceed Ten Million and 00/100 Dollars ($10,000,000). The form and substance of each Letter of Credit shall be subject to approval by the Bank, in
its sole discretion. Each Letter of Credit shall be issued for a term, as designated by the Borrower, provided that the aggregate drawn and undrawn amount of all outstanding Letters of Credit having an expiry date longer than three (3) years
shall not exceed One Million Dollars ($1,000,000). The undrawn amount of all Letters of Credit shall be reserved under the Line of Credit and such amount shall not be available for borrowings. Each Letter of Credit shall be subject to the additional
terms and conditions of the Letter of Credit agreements, applications and any related documents required by the Bank in connection with the issuance of Letters of Credit. At the option of the Bank, any drawing paid under a Letter of Credit may be
deemed an advance under the Line of Credit and shall be repaid by the Borrower in accordance with the terms and conditions of this Agreement applicable to such advances; provided however, that if advances under the Line of Credit are not available,
for any reason, at the time any drawing is paid, then the Borrower shall immediately pay to the Bank the full amount drawn, together with interest from the date such drawing is paid to the date such amount is fully repaid by the Borrower, at the
rate of interest applicable to advances under the Line of Credit. In such event the Borrower agrees 



  
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that the Bank, in its sole discretion, may debit any account maintained by the Borrower with the Bank for the amount of any such drawing. The Borrower agrees to deposit in a cash collateral
account with the Bank an amount equal to the aggregate outstanding undrawn face amount of all letters of credit which remain outstanding on the Facility No. 1 Expiration Date. The Borrower grants a security interest in such cash collateral
account to the Bank. Amounts held in such cash collateral account shall be applied by the Bank to the payment of drafts drawn under such letters of credit and to the obligations and liabilities of the Borrower to the Bank, in such order of
application as the Bank may in its sole discretion elect. 


  

	(b)	 The Borrower shall pay the a non-refundable fee equal to 1.5% per
annum of the outstanding undrawn amount of each commercial letter of credit that is not secured by cash and 0.6% of each commercial letter of credit that is secured by cash, in each case payable quarterly in advance, calculated on the basis of the
face amount outstanding on the day the fee is calculated. 



 

	 3.	 facility no. 2: variable rate term loan amount and terms 




 

	A.	 Loan Amount. 



The Bank agrees to provide a term loan to the Borrower in the amount of Twenty Million and 00/100 Dollars ($20,000,000.00) (the “Facility
No. 2 Commitment”). 
  

	B.	 Availability Period. 



The loan is available in one disbursement from the Bank on the date of this Agreement. 

 

	C.	 Repayment Terms. 



 

	(a)	 The Borrower will pay interest on July 1, 2021, and then on the same day of each month thereafter until
payment in full of all principal outstanding under this facility. 


  

	(b)	 The Borrower will repay principal in equal installments of One Hundred Sixty Six Thousand Six Hundred Sixty
Six and 67/100 Dollars ($166,666.67), representing a ten (10) year amortization period, beginning on July 1, 2021, and on the same day of each month thereafter, and ending on June 1, 2026, (the “Repayment
Period”). In any event, on the last day of the Repayment Period, the Borrower will repay the remaining principal balance plus all interest then due in a final balloon payment. 



 

	(c)	 The Borrower may prepay the loan in full or in part at any time. The prepayment will be applied to the most
remote payment of principal due under this Agreement. 


  

	D.	 Interest Rate. 



 

	(a)	 The interest rate is a rate per year equal to the sum of (i) the greater of the BSBY Rate
(Adjusted Periodically) or the Index Floor, plus (ii) 1.5 percentage point(s). For the purposes of this paragraph, “Index Floor” means 0 percent. 



  
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	(b)	 The interest rate will be adjusted on the Initial Adjustment Date and remain fixed until the next Adjustment
Date. If the Adjustment Date in any particular month would otherwise fall on a day that is not a banking day then, at the Bank’s option, the Adjustment Date for that particular month will be the first banking day immediately following
thereafter. 


  

	(c)	 The BSBY Rate (Adjusted Periodically) is a rate of interest equal to the rate per annum equal to the BSBY
Screen Rate as determined for each Adjustment Date two (2) Business Days prior to the Adjustment Date (for delivery on the first day of such interest period) with a term of one month; provided that if such rate is not published on such
determination date then the rate will be the BSBY Screen Rate on the first Business Day immediately prior thereto. “BSBY Screen Rate” means the Bloomberg Short-Term Bank Yield Index rate (“BSBY”) administered by Bloomberg Index
Services Limited and published on the applicable Reuters screen page (or such other commercially available source providing such quotations as may be designated by the Bank from time to time). If the BSBY Rate is not available at such time for any
reason or the Bank makes the determination to incorporate or adopt a new interest rate to replace the BSBY Rate in credit agreements, then the Bank may replace the BSBY Rate with an alternate interest rate and adjustment, if applicable, as
reasonably selected by the Bank, giving due consideration to any evolving or then existing conventions for such interest rate and adjustment (any such successor interest rate, as adjusted, the “Successor Rate”). In connection with the
implementation of the Successor Rate, the Bank will have the right, from time to time, in good faith to make any conforming, technical, administrative or operational changes to this Agreement as may be appropriate to reflect the adoption and
administration thereof and, notwithstanding anything to the contrary herein or in any other loan document, any amendments to this Agreement implementing such conforming changes will become effective upon notice to the Borrower without any further
action or consent of the other parties hereto. A “Business Day” is a day other than a Saturday or a Sunday on which banks are open for business in the State of New York. If at any time the BSBY Rate (Adjusted Periodically) is less than
zero, such rate shall be deemed to be zero for the purposes of this Agreement. 


  

	(d)	 Each prepayment of an amount bearing interest at the rate provided by this paragraph, whether voluntary, by
reason of acceleration or otherwise, will be accompanied by the amount of accrued interest on the amount prepaid, and a prepayment fee as described below. A “prepayment” is a payment of an amount on a date other than an Adjustment Date.



  

	(e)	 The prepayment fee shall be in an amount sufficient to compensate the Bank for any loss, cost or expense
incurred by it as a result of a prepayment on a date other than an Adjustment Date, including any loss of anticipated profits and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain the amount prepaid
or from fees payable to terminate the deposits from which such funds were obtained. The Borrower shall also pay any customary administrative fees charged by the Bank in connection with the foregoing. 



  
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	 4.	 collateral 




 

	A.	 Personal Property. 



The personal property listed below now owned or owned in the future by the parties listed below will secure the Borrower’s obligations to
the Bank under this Agreement or, if the collateral is owned by a Guarantor, will secure the guaranty, if so indicated in the security agreement. The collateral is further defined in security agreement(s) executed by the owners of the collateral.

  

	(a)	 Equipment and fixtures owned by Borrower and Guarantors. 



 

	(b)	 Inventory owned by Borrower and Guarantors. 



 

	(c)	 Receivables owned by Borrower and Guarantors. 



 

	(d)	 Patents, trademarks and other general intangibles owned by Borrower and Guarantors. 



 

	 5.	 loan administration and fees 




 

	A.	 Fees. 



The Borrower will pay to the Bank the fees set forth on Schedule A. 
  

	B.	 Collection of Payments; Payments Generally. 



 

	(a)	 Regularly scheduled interest and principal payments will be made by debit to a deposit account, if direct
debit is provided for in this Agreement or is otherwise authorized by the Borrower. For regularly scheduled interest and principal payments not made by direct debit and for all other payments, such payments will be made by such other method as may
be permitted by the Bank. 


  

	(b)	 Each disbursement by the Bank and each payment by the Borrower will be evidenced by records kept by the Bank
which will, absent manifest error, be conclusively presumed to be correct and accurate and constitute an account stated between the Borrower and the Bank. 


  

	(c)	 All payments to be made by the Borrower shall be made free and clear of and without condition or deduction
for any counterclaim, defense, recoupment or setoff. 


  

	C.	 Borrower’s Instructions. 



Subject to the terms, conditions and procedures stated elsewhere in this Agreement, the Bank may honor instructions for advances or repayments
and any other instructions under this Agreement given by the Borrower (if an individual), or by any one of the individuals the Bank reasonably believes is authorized to sign loan agreements on behalf of the Borrower, or any other individual(s)
designated by any one of such authorized signers (each an “Authorized Individual”). The Bank may honor any such instructions made by any one of the Authorized Individuals, whether such instructions are given in writing or by telephone,
telefax or Internet and intranet websites designated by the Bank with respect to separate products or services offered by the Bank. 
  

	D.	 Direct Debit. 



 

	(a)	 The Borrower agrees that on the due date of any amount due under this Agreement, the Bank will debit the
amount due from deposit account number                      owned by Borrower, or such other of the Borrower’s accounts with the Bank as
designated in writing by the Borrower (the “Designated Account”). Should there be insufficient funds in the Designated Account to pay all such sums when due, the full amount of such deficiency shall be immediately due and payable by the
Borrower. 



  
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	E.	 Banking Days. 



Unless otherwise provided in this Agreement, a banking day is a day other than a Saturday, Sunday or other day on which commercial banks are
authorized to close, or are in fact closed, in the state where the Bank’s lending office is located, and, if such day relates to amounts bearing interest at an offshore rate (if any), means any such day on which dealings in dollar deposits are
conducted among banks in the offshore dollar interbank market. All payments and disbursements which would be due or which are received on a day which is not a banking day will be due or applied, as applicable, on the next banking day. 

 

	F.	 Additional Costs. 



The Borrower will pay the Bank, on demand, for the Bank’s costs or losses arising from any Change in Law which are allocated to this
Agreement or any credit outstanding under this Agreement. The allocation will be made as determined by the Bank, using any reasonable method. The costs include, without limitation, the following: 

 

	(a)	 any reserve or deposit requirements (excluding any reserve requirement already reflected in the calculation
of the interest rate in this Agreement); and 


  

	(b)	 any capital requirements relating to the Bank’s assets and commitments for credit.



 “Change in Law” means the occurrence, after the date of this Agreement, of the adoption or taking effect of
any new or changed law, rule, regulation or treaty, or the issuance of any request, rule, guideline or directive (whether or not having the force of law) by any governmental authority; provided that (x) the Dodd-Frank Wall Street Reform
and Consumer Protection Act and all requests, rules, guidelines or directives issued in connection with that Act, and (y) all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee
on Banking Supervision (or any successor authority) or the United States regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a “Change in Law,” regardless of the date enacted, adopted or issued.

  

	G.	 Interest Calculation. 



Except as otherwise stated in this Agreement, all interest and fees, if any, will be computed on the basis of a
360-day year and the actual number of days elapsed. This results in more interest or a higher fee than if a 365-day year is used. Installments of principal which are not
paid when due under this Agreement shall continue to bear interest until paid. To the extent that any calculation of interest or any fee required to be paid under this Agreement shall be less than zero, such rate shall be deemed zero for purposes of
this Agreement. 
  

	H.	 Default Rate. 



Upon the occurrence of any default or after maturity or after judgment has been rendered on any obligation under this Agreement, all amounts
outstanding under this Agreement, including any unpaid interest, fees, or costs, will at the option of the Bank bear interest at a rate which is 6.0 percentage point(s) higher than the rate of interest otherwise provided under this Agreement. This
may result in compounding of interest. This will not constitute a waiver of any default. 

  
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	I.	 Taxes. 



If any payments to the Bank under this Agreement are made from outside the United States, the Borrower will not deduct any foreign taxes from
any payments it makes to the Bank. If any such taxes are imposed on any payments made by the Borrower (including payments under this paragraph), the Borrower will pay the taxes and will also pay to the Bank, at the time interest is paid, any
additional amount which the Bank specifies as necessary to preserve the after-tax yield the Bank would have received if such taxes had not been imposed. The Borrower will confirm that it has paid the taxes by
giving the Bank official tax receipts (or notarized copies) within thirty (30) days after the due date. 
  

	J.	 Overdrafts. 



At the Bank’s sole option in each instance, the Bank may do one of the following: 

 

	(a)	 The Bank may make advances under this Agreement to prevent or cover an overdraft on any account of the
Borrower with the Bank. Each such advance will accrue interest from the date of the advance or the date on which the account is overdrawn, whichever occurs first, at the interest rate described in this Agreement. The Bank may make such advances even
if the advances may cause any credit limit under this Agreement to be exceeded. 


  

	(b)	 The Bank may reduce the amount of credit otherwise available under this Agreement by the amount of any
overdraft on any account of the Borrower with the Bank. 


 This paragraph shall not be deemed to authorize the Borrower to
create overdrafts on any of the Borrower’s accounts with the Bank. 

 

	 6.	 conditions 




Before the Bank is required to extend any credit to the Borrower under this Agreement, it must receive any documents and other items it may
reasonably require, in form and content acceptable to the Bank, including any items specifically listed below. 
  

	A.	 Authorizations. 



If the Borrower or any other Obligor is anything other than a natural person, evidence that the execution, delivery and performance by the
Borrower and/or such Obligor of this Agreement and any instrument or agreement required under this Agreement have been duly authorized. 
  

	B.	 Governing Documents. 



If required by the Bank, a copy of the Borrower’s organizational documents. 

 

	C.	 KYC Information. 



 

	(a)	 Upon the request of the Bank, the Borrower shall have provided to the Bank, and the Bank shall be reasonably
satisfied with, the documentation and other information so requested in connection with applicable “know your customer” and anti-money-laundering rules and regulations, including, without limitation, the PATRIOT Act. 




  
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	(b)	 If the Borrower qualifies as a “legal entity customer” under the Beneficial Ownership Regulation,
it shall have provided a Beneficial Ownership Certification to the Bank if so requested. 


  

	D.	 Guaranties. 



 

	(a)	 At closing, guaranties signed by GHM Acquisition Corp., Graham Acquisition I, LLC and Barber-Nichols, LLC.



  

	(b)	 Within one hundred twenty (120) days of closing, guaranties from Graham India Private Ltd. and Graham
Vacuum and Heat Transfer Technology (Suzhou) Co., Ltd., each pursuant to that certain post-closing agreement among Borrower, Guarantors and Bank dated on even date herewith. 



 

	E.	 Security Agreements. 



Signed original security agreements covering the personal property collateral which the Bank requires. 

 

	F.	 Perfection and Evidence of Priority. 



Evidence that the security interests and liens in favor of the Bank are valid, enforceable, properly perfected in a manner acceptable to the
Bank and prior to all others’ rights and interests, except those the Bank consents to in writing. 
  

	G.	 Landlord Agreement. 



For any personal property collateral located on real property which is subject to a mortgage or deed of trust or which is not owned by the
Borrower (or the grantor of the security interest), an agreement from the owner of the real property and the holder of any such mortgage or deed of trust. 
  

	H.	 Payment of Fees. 



Payment of all fees, expenses and other amounts due and owing to the Bank. If any fee is not paid in cash, the Bank may, in its discretion,
treat the fee as a principal advance under this Agreement or deduct the fee from the loan proceeds. 
  

	I.	 Repayment of Other Credit Agreement. 



 

	(a)	 Evidence that the existing credit agreement between the Borrower and JPMorgan Chase Bank, N.A., as
administrative agent, has been repaid and cancelled on or before the first disbursement under this Agreement. 


  

	(b)	 Evidence that any outstanding credit agreement to which Barber-Nichols, LLC was obligated as a borrower has
been repaid and cancelled on or before the first disbursement of this Agreement. 


  

	J.	 Good Standing. 



Certificates of good standing for the Borrower and domestic Guarantors from its state of formation and from any other state in which the
Borrower is required to qualify to conduct its business. 

  
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	K.	 Legal Opinion. 



A written opinion from the Borrower’s legal counsel, covering such matters as the Bank may require. The legal counsel and the terms of the
opinion must be acceptable to the Bank. 
  

	L.	 Insurance. 



Evidence of insurance coverage, as required in the “Covenants” section of this Agreement. 

 

	 7.	 representations and warranties 




When the Borrower signs this Agreement, and until the Bank is repaid in full, the Borrower makes the following representations and warranties.
Each request for an extension of credit constitutes a renewal of these representations and warranties as of the date of the request: 
  

	A.	 Formation. 



If the Borrower is anything other than a natural person, it is duly formed and existing under the laws of the state or other jurisdiction where
organized. 
  

	B.	 Authorization. 



This Agreement, and any instrument or agreement required under this Agreement, are within the Borrower’s powers, have been duly
authorized, and do not conflict with any of its organizational papers. 
  

	C.	 Beneficial Ownership Certification. 



The information included in the Beneficial Ownership Certification most recently provided to the Bank, if applicable, is true and correct in
all respects. 
  

	D.	 Good Standing. 



In each state or other jurisdiction in which the Borrower does business, it is properly licensed, in good standing, and, where required, in
compliance with fictitious name (e.g. trade name or d/b/a) statutes. 
  

	E.	 Government Sanctions. 



 

	(a)	 The Borrower represents that no Obligor, nor any affiliated entities of any Obligor, including in the case
of any Obligor that is not a natural person, subsidiaries nor, to the knowledge of the Borrower, any owner, trustee, director, officer, employee, agent, affiliate or representative of the Borrower or any other Obligor is an individual or entity
(“Person”) currently the subject of any sanctions administered or enforced by the United States Government, including, without limitation, the U.S. Department of Treasury’s Office of Foreign Assets Control, the United Nations Security
Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively, “Sanctions”), nor is the Borrower or any other Obligor located, organized or resident in a country or territory that is the
subject of Sanctions. 



  
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	(b)	 The Borrower represents and covenants that it will not, directly or indirectly, use the proceeds of the
credit provided under this Agreement, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person, to fund any activities of or business with any Person, or in any country or territory,
that, at the time of such funding, is the subject of Sanctions, or in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of
Sanctions. 


  

	F.	 Financial Information. 



All financial and other information that has been or will be supplied to the Bank taken as a whole is sufficiently complete to give the Bank
accurate knowledge of the Borrower’s (and any other Obligor’s) financial condition, including all material contingent liabilities. Since the date of the most recent financial statement provided to the Bank, there has been no material
adverse change in the business condition (financial or otherwise), operations, properties or prospects of the Borrower (or any other Obligor). If the Borrower is comprised of the trustees of a trust, the above representations shall also pertain to
the trustor(s) of the trust. 
  

	G.	 Lawsuits. 



There is no lawsuit, tax claim or other dispute pending or threatened against the Borrower or any other Obligor which, if lost, would impair
the Borrower’s or such Obligor’s financial condition or ability to repay its obligations as contemplated by this Agreement or any other agreement contemplated hereby, except as have been disclosed in writing to the Bank prior to the date
of this Agreement. 
  

	H.	 Other Obligations. 



The Borrower and each Related Party is not in default on any obligation for borrowed money, any purchase money obligation or any other material
lease, commitment, contract, instrument or obligation, except as have been disclosed in writing to the Bank prior to the date of this Agreement. 
  

	I.	 Tax Matters. 



The Borrower has no knowledge of any pending assessments or adjustments of income tax for itself or for any Related Party for any year and all
taxes due have been paid, except as have been disclosed in writing to the Bank prior to the date of this Agreement. 
  

	J.	 Collateral. 



All collateral required in this Agreement is owned by the grantor of the security interest free of any title defects or any liens or interests
of others, except those which have been approved by the Bank in writing. 

  
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	K.	 No Event of Default. 



There is no event which is, or with notice or lapse of time or both would be, a default under this Agreement. 

 

	L.	 Location of Pledgor. 



 

	(a)	 The jurisdiction of Borrower’s formation is Delaware and it’s chief executive office is listed on
its signature page to this Agreement. 


  

	(b)	 The jurisdiction of GHM Acquisition Corp.’s formation is Delaware and it’s chief executive office
is the same as Borrower’s. 


  

	(c)	 The jurisdiction of Graham Acquisition I, LLC’s formation is Delaware and it’s chief executive
office is the same as Borrower’s. 


  

	(d)	 The jurisdiction of Barber-Nichols, LLC’s formation is Colorado and its chief executive office is 6325
W. 55th Ave, Arvada, Colorado 80002. 


  

	M.	 ERISA Plans. 



 

	(a)	 Each Plan (other than a multiemployer plan) is in compliance in all material respects with ERISA, the Code
and other federal or state law, including all applicable minimum funding standards and there have been no prohibited transactions with respect to any Plan (other than a multiemployer plan), which has resulted or could reasonably be expected to
result in a material adverse effect. 


  

	(b)	 With respect to any Plan subject to Title IV of ERISA: 



 

	 	(i)	 No reportable event has occurred under Section 4043(c) of ERISA which requires notice.



  

	 	(ii)	 No action by the Borrower or any ERISA Affiliate to terminate or withdraw from any Plan has been taken and
no notice of intent to terminate a Plan has been filed under Section 4041 or 4042 of ERISA. 


  

	(c)	 The following terms have the meanings indicated for purposes of this Agreement: 



 

	 	(i)	 “Code” means the Internal Revenue Code of 1986, as amended. 



 

	 	(ii)	 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.



  

	 	(iii)	 “ERISA Affiliate” means any trade or business (whether or not incorporated) under common control
with the Borrower within the meaning of Section 414(b) or (c) of the Code. 



  
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	 	(iv)	 “Plan” means a plan within the meaning of Section 3(2) of ERISA maintained or contributed to
by the Borrower or any ERISA Affiliate, including any multiemployer plan within the meaning of Section 4001(a)(3) of ERISA. 


  

	N.	 No Plan Assets. 



The Borrower represents that, as of the date hereof and throughout the term of this Agreement, no Borrower or Guarantor, if any, is (1) an
employee benefit plan subject to Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), (2) a plan or account subject to Section 4975 of the Internal Revenue Code of 1986 (the “Code”); (3) an
entity deemed to hold “plan assets” of any such plans or accounts for purposes of ERISA or the Code; or (4) a “governmental plan” within the meaning of ERISA. 

 

	O.	 Enforceable Agreement. 



This Agreement is a legal, valid and binding agreement of the Borrower, enforceable against the Borrower in accordance with its terms, and any
instrument or agreement required under this Agreement, when executed and delivered, will be similarly legal, valid, binding and enforceable. 
  

	P.	 No Conflicts. 



This Agreement does not conflict with any law, agreement, or obligation by which the Borrower or any other Obligor is bound. 

 

	Q.	 Permits, Franchises. 



Each Related Party possesses all permits, memberships, franchises, contracts and licenses required and all trademark rights, trade name
rights, patent rights, copyrights, and fictitious name rights necessary to enable it to conduct the business in which it is now engaged. 
  

	R.	 Insurance. 



The Borrower and each Related Party has obtained, and maintained in effect, the insurance coverage required in the “Covenants”
section of this Agreement. 
  

	 8.	 covenants 




The Borrower agrees, so long as credit is available under this Agreement and until the Bank is repaid in full, the Borrower shall, and shall
cause each Related Party: 
  

	A.	 Use of Proceeds. 



(a)    For Facility No. 1, to use the proceeds of the credit extended under this Agreement working capital and general
business purposes. 

  
 13 













 (b)    For Facility No. 2, to use the proceeds to purchase 100% of
the stock of Barber-Nichols, Inc., predecessor in interest to Barber-Nichols, LLC. 
  

	B.	 Financial Information. 



To provide the following financial information and statements in form and content acceptable to the Bank, and such additional information as
requested by the Bank from time to time. The Bank reserves the right, upon written notice to the Borrower, to require the Borrower to deliver financial information and statements to the Bank more frequently than otherwise provided below, and to use
such additional information and statements to measure any applicable financial covenants in this Agreement. 
  

	(a)	 Within 120 days of the fiscal year end, the annual financial statements of Borrower, certified and
dated by an authorized financial officer. These financial statements must be audited (with an opinion satisfactory to the Bank) by a Certified Public Accountant (“CPA”) acceptable to the Bank. The statements shall be prepared on a
consolidated basis. 


  

	(b)	 Within 45 days after each period’s end (excluding the last period in each fiscal year), quarterly
financial statements of Borrower, certified and dated by an authorized financial officer. These financial statements may be company-prepared. The statements shall be prepared on a consolidated basis. 



 

	(c)	 Promptly, upon sending or receipt, copies of any management letters and correspondence relating to
management letters, sent or received by the Borrower to or from the Borrower’s auditor. If no management letter is prepared, the Bank may, in its discretion, request a letter from such auditor stating that no deficiencies were noted that would
otherwise be addressed in a management letter. 


  

	(d)	 Within 120 days of the end of each fiscal year, a compliance certificate of the Borrower, signed by
an authorized financial officer and setting forth (i) the information and computations (in sufficient detail) to establish compliance with all financial covenants at the end of the period covered by the financial statements then being furnished
and (ii) whether there existed as of the date of such financial statements and whether there exists as of the date of the certificate, any default under this Agreement applicable to the party submitting the information and, if any such default
exists, specifying the nature thereof and the action the party is taking and proposes to take with respect thereto. 


  

	(e)	 Within 45 days of the end of each quarter (excluding the last period in each fiscal year), a
compliance certificate of the Borrower, signed by an authorized financial officer and setting forth (i) the information and computations (in sufficient detail) to establish compliance with all financial covenants at the end of the period
covered by the financial statements then being furnished and (ii) whether there existed as of the date of such financial statements and whether there exists as of the date of the certificate, any default under this Agreement applicable to the
party submitting the information and, if any such default exists, specifying the nature thereof and the action the party is taking and proposes to take with respect thereto. 



  
 14 














	(f)	 The operating budget of the Borrower, in form and content acceptable to the Bank, within 120 days after the
end of each fiscal year, which shall include, but not be limited to, an income statement, balance sheet, cash flow statement and capital budget. 


  

	(g)	 Promptly upon the Bank’s request, such other books, records, statements, lists of property and
accounts, budgets, forecasts or reports as to the Borrower and as to each other Obligor as the Bank may request. 


  

	(h)	 Documents required to be delivered pursuant to (a) and (b) above may be delivered electronically and,
if so delivered, shall be deemed to have been delivered on the date (i) on which such materials are publicly available as posted on the Electronic Data Gathering, Analysis and Retrieval system (EDGAR); or (ii) on which such documents are
posted on the Borrower’s behalf on an Internet or intranet website, if any, to which access the Bank has; provided that: (A) upon written request by the Bank to the Borrower, the Borrower shall deliver paper copies of such documents to the
Bank until a written request to cease delivering paper copies is given by the Bank and (B) the Borrower shall notify the Bank of the posting of any such documents and provide to the Bank through Electronic System electronic versions (i.e., soft
copies) of such documents. The Bank shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above. 


  

	C.	 Funded Debt to EBITDA Ratio. 



To maintain on a consolidated basis a ratio of Funded Debt to EBITDA not exceeding 3.0:1.0, which ratio may be increased to 3.25:1.0 upon the
election of Borrower by written notice to the Bank prior to or within 30 days following a Permitted Acquisition for the twelve (12) months immediately following the closing of such Permitted Acquisition by Borrower. 

“Funded Debt” means all outstanding liabilities for borrowed money and other interest-bearing liabilities, including current and
long term debt (including issued letters of credit that are not secured by cash), less the non-current portion of Subordinated Liabilities; provided that for the avoidance of doubt, “Funded Debt”
shall not include operating lease liabilities or letters of credit that are secured by cash. 
 “EBITDA” means net income, less
income or plus loss from discontinued operations (including unusual and infrequent items, agreed to at the sole discretion of the Bank), plus income taxes, plus interest expense, plus depreciation, depletion, and amortization. This ratio will be
calculated at the end of each reporting period for which the Bank requires financial statements, using the results of the twelve-month period ending with that reporting period. 

“Permitted Acquisitions” means the acquisition of all or substantially all of the equity interests of a person or entity (an
“Acquisition”) by Borrower or a subsidiary of Borrower where: 
  

	(a)	 the business or division acquired is for use, or the person acquired is engaged, in the businesses which are
similar or related to the businesses engaged in by the Borrower on the date of this Agreement or are otherwise reasonably incidental or complementary thereto; 



  
 15 














	(b)	 immediately before and after giving effect to such Acquisition, no default shall exist under Section 10
of this Agreement or any event which, with the giving of notice or passage of time or both, would constitute an event of default under Section 10 below; 


  


	(c)	 immediately before such Acquisition, the Borrower’s Funded Debt to EBITDA Ratio on a pro forma basis
after giving effect to such acquisition(s) is equal to or less than 3.0 to 1.0: 


  

	(d)	 if a new subsidiary is formed or acquired as a result of or in connection with the Acquisition, such
subsidiary shall become a guarantor. 


 “Subordinated Liabilities” means liabilities subordinated to the
Borrower’s obligations to the Bank by law or, if by contract, in a manner acceptable to the Bank in its sole discretion. 
  

	D.	 Basic Fixed Charge Coverage Ratio. 



To maintain on a consolidated basis a Basic Fixed Charge Coverage Ratio of at least 1.2:1.0. 

“Basic Fixed Charge Coverage Ratio” means the ratio of (a) the sum of EBITDA minus maintenance capital expenditures, to
(b) the sum of interest expense, the current portion of long term debt and the current portion of capitalized leased obligations, plus cash taxes paid and cash dividends paid. 

“EBITDA” means net income, less income or plus loss from discontinued operations (including unusual and infrequent items, agreed to
at the sole discretion of the Bank), plus income taxes, plus interest expense, plus depreciation, depletion, and amortization. 
 This ratio
will be calculated at the end of each reporting period for which the Bank requires financial statements, using the results of the twelve-month period ending with that reporting period. The current portion of long-term liabilities will be measured as
of the date twelve (12) months prior to the current financial statement. 
  

	E.	 Dividends and Distributions. 



Not to declare or pay any dividends (except dividends paid in capital stock), redemptions of stock or membership interests, distributions and
withdrawals (as applicable) to its owners while any default exists under Section 10 of this Agreement, or would result from such dividend or payment. 
  

	F.	 Bank as Principal Depository. 



To maintain, within a commercially reasonable time following the closing of this Agreement, the Bank or one of its affiliates as its principal
depository bank, including for the maintenance of business, cash management, operating and administrative deposit accounts. 
  

	G.	 Other Debts. 



Not to have outstanding or incur any direct or contingent liabilities or lease obligations (other than those to the Bank or to any affiliate of
the Bank), or become liable for the liabilities of others, without the Bank’s written consent. This does not prohibit: 
  

	(a)	 Acquiring goods, supplies, or merchandise on normal trade credit. 



  
 16 














	(b)	 Liabilities, lines of credit and leases in existence on the date of this Agreement disclosed in writing to
the Bank in the Borrower’s most recent financial statement. 


  

	(c)	 Liabilities listed on Schedule 8.7(c) to this Agreement. 



 

	(d)	 Liabilities in connection with letters of credit that are secured by cash. 



 

	(e)	 A Line of Credit from HSBC Bank USA, National Association to the Borrower in the maximum principal amount of
$15,000,000. 


  

	(f)	 Purchase money indebtedness in connection with equipment purchased in the ordinary course of Borrower’s
business in an aggregate amount not to exceed One Million Dollars ($1,000,000) outstanding at one time. 


  

	(g)	 Additional debts and lease obligations for business purposes not contemplated by the above provisions which
do not exceed a total principal amount of One Million Dollars ($1,000,000) outstanding at any one time. 


  

	H.	 Other Liens. 



Not to create, assume, or allow any security interest or lien (including judicial liens) on property each Related Party now or later
owns without the Bank’s written consent. This does not prohibit: 
  

	(a)	 Liens and security interests in favor of the Bank or any affiliate of the Bank. 



 

	(b)	 Liens for taxes not yet due. 



 

	(c)	 Liens outstanding on the date of this Agreement disclosed in writing to the Bank. 



 

	(d)	 Additional purchase money security interests in assets acquired after the date of this Agreement, if the
total principal amount of debts secured by such liens does not exceed One Million Dollars ($1,000,000) at any one time. 


  

	(e)	 Cash collateral to secure letters of credit. 



 

	(f)	 Liens listed on Schedule 8.8(f) to this Agreement. 



 

	I.	 Maintenance of Assets. 



 

	(a)	 Not to sell, assign, lease, transfer or otherwise dispose of any part of any Related Party’s business
or any Related Party’s assets except (i) inventory and obsolete, worn out or surplus equipment or property sold in the ordinary course of such Related Party’s business, (ii) accounts (other than under factoring agreements) in the
connection with the compromise, settlement or collection thereof, and (iii) other assets (other than equity interests in a subsidiary unless all equity interests of the subsidiary are sold) the disposition of which is not otherwise permitted
hereunder, in an amount not to exceed $250,000 in fair market value thereof per year. 



  
 17 














	(b)	 Not to sell, assign, lease, transfer or otherwise dispose of any assets for less than fair market value, or
enter into any agreement to do so. 


  

	(c)	 Not to enter into any sale and leaseback agreement covering any of its fixed assets, except for any such
sale of any fixed or capital assets that is made for cash consideration in an amount not less than the fair value of such fixed or capital asset and is consummated within 90 days after such Related Party acquires or completes the construction of
such fixed or capital asset. 


  

	(d)	 To maintain and preserve all rights, privileges, and franchises any Related Party now has.



  

	(e)	 To make any repairs, renewals, or replacements to keep each Related Party’s properties in good working
condition. 


  

	(f)	 To execute and deliver such documents as the Bank deems necessary to create, perfect and continue the
security interests contemplated by this Agreement. 


  

	J.	 Investments. 



Not to have any existing, or make any new, investments in any individual or entity, or make any capital contributions or other transfers of
assets to any individual or entity, except for: 
  

	(a)	 Existing investments disclosed to the Bank in writing prior to the date of this Agreement.



  

	(b)	 Investments in any of the following: 



 

	 	(i)	 certificates of deposit; 



 

	 	(ii)	 U.S. treasury bills and other obligations of the federal government; 



 

	 	(iii)	 readily marketable securities (including commercial paper, but excluding restricted stock and stock subject
to the provisions of Rule 144 of the Securities and Exchange Commission). 


  

	(c)	 Investments listed on Schedule 8.10(c) to this Agreement. 



 

	(d)	 Intercompany loans to other Obligors and guarantees of obligations of other Obligors which do not in the
aggregate exceed One Million Dollars ($1,000,000) outstanding at any one time. 


  

	(e)	 Investments that do not exceed an aggregate amount of Two Hundred Fifty Thousand Dollars ($250,000)
outstanding at any one time. 


  

	K.	 Loans. 



Not to make any loans, advances or other extensions of credit to any individual or entity, except for: 

 

	(a)	 Existing extensions of credit disclosed to the Bank in writing prior to the date of this Agreement.



  

	(b)	 Extensions of credit to each Related Party’s current subsidiaries or affiliates. 



 

	(c)	 Extensions of credit in the nature of accounts receivable or notes receivable arising from the sale or lease
of goods or services in the ordinary course of business to non-affiliated entities. 



  
 18 














	(d)	 Loans or advances made to employees on an arms-length basis in the ordinary course of business consistent
with past practices for travel and entertainment expenses, relocation costs and similar expenses not to exceed $250,000 outstanding at any one time. 


  

	(e)	 Extensions of credit listed on Schedule 8.11(e) to this Agreement. 



 

	(f)	 Permitted Acquisitions. 



 

	(g)	 Extensions of credit that do not exceed an aggregate amount of One Hundred Thousand Dollars ($100,000)
outstanding at any one time. 


  

	L.	 Change of Management. 



Not to make any substantial change in the present executive or management personnel of the Borrower. 

 

	M.	 Change of Ownership. 



Not to cause, permit, or suffer any change in capital ownership such that there is a material change, as determined by the Bank in its sole
discretion in the direct or indirect capital ownership of the Borrower. 
  

	N.	 Additional Negative Covenants. 



Not to, without the Bank’s written consent: 
  

	(a)	 (i) Enter into any consolidation, merger, or other combination, except that a subsidiary of the Borrower may
merge into the Borrower, and a Loan Party may merge with or into another Loan Party, or (iii) become a partner in a partnership, a member of a joint venture, or a member of a limited liability company. 



 

	(b)	 Acquire or purchase a business or its assets, other than Permitted Acquisitions. 



 

	(c)	 Engage in any business activities substantially different from the Borrower’s present business.



  

	(d)	 Liquidate or dissolve any Obligor’s business. 



 

	(f)	 With respect to any Obligor which is a business entity, adopt a plan of division or divide itself into two
or more business entities (pursuant to a “plan of division” under Section 18-217 of the Delaware Limited Liability Company Act or a similar arrangement under any other applicable state statute).



  

	(g)	 Voluntarily suspend its business for more than five (5) days in any thirty (30) day period.



  

	O.	 Notices to Bank. 



To promptly notify the Bank in writing of: 
  

	(a)	 Any event of default under this Agreement, or any event which, with notice or lapse of time or both, would
constitute an event of default. 



  
 19 














	(b)	 Any change in any Obligor’s name, legal structure, principal residence, or name on any driver’s
license or special identification card issued by any state (for an individual), state of registration (for a registered entity), place of business, or chief executive office if the Obligor has more than one place of business. 



 

	P.	 Insurance. 



 

	(a)	 General Business Insurance. To maintain insurance satisfactory to the Bank as to amount, nature and
carrier covering property damage (including loss of use and occupancy) to any of the Obligor’s properties, business interruption insurance, public liability insurance including coverage for contractual liability, product liability and
workers’ compensation, and any other insurance which is usual for such Obligor’s business. Each policy shall include a cancellation clause in favor of the Bank. 



 

	(b)	 Insurance Covering Collateral. To maintain all risk property damage insurance policies (including
without limitation windstorm coverage, flood coverage, and hurricane coverage as applicable) covering the tangible property comprising the collateral. Each insurance policy must be in an amount acceptable to the Bank. The insurance must be issued by
an insurance company acceptable to the Bank and must include a lender’s loss payable endorsement in favor of the Bank in a form acceptable to the Bank. 


  

	(c)	 Evidence of Insurance. Upon the request of the Bank, to deliver to the Bank a copy of each insurance
policy, or, if permitted by the Bank, a certificate of insurance listing all insurance in force. 


  

	Q.	 Compliance with Laws.  



To comply with the requirements of all laws and all orders, writs, injunctions and decrees applicable to it or to its business or property,
except in such instances in which (a) such requirement of law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted; or (b) the failure to comply therewith could not
reasonably be expected to cause a material adverse change in any Obligor’s business condition (financial or otherwise), operations or properties, or ability to repay the credit, or, in the case of the Controlled Substances Act, result in the
forfeiture of any material property of any Obligor. 
  

	R.	 Books and Records. 



To maintain adequate books and records, including complete and accurate records regarding all Collateral. 

 

	S.	 Audits. 



To allow the Bank and its agents to inspect the Borrower’s properties and examine, audit, and make copies of books and records at any
time. If any of the Borrower’s properties, books or records are in the possession of a third party, the Borrower authorizes that third party to permit the Bank or its agents to have access to perform inspections or audits and to respond to the
Bank’s requests for information concerning such properties, books and records. 

  
 20 














	T.	 Perfection of Liens. 



To help the Bank perfect and protect its security interests and liens, and reimburse it for related costs it incurs to protect its security
interests and liens. 
  

	U.	 Cooperation. 



To take any action reasonably requested by the Bank to carry out the intent of this Agreement. 

 

	V.	 Patriot Act; Beneficial Ownership Regulation. 



Promptly following any request therefor, to provide information and documentation reasonably requested by the Bank for purposes of compliance
with applicable “know your customer” and anti-money-laundering rules and regulations, including, without limitation, the PATRIOT Act and the Beneficial Ownership Regulation. 

 

	W.	 Subsidiary Guaranties and Collateral. 



 

	(a)	 Guarantors. The Borrower will cause each of its subsidiaries whether newly formed, after acquired or
otherwise existing to promptly (and in any event within thirty (30) days after such subsidiary is formed or acquired (or such longer period of time as agreed to by the Bank in its reasonable discretion)) become a Guarantor hereunder by way of
execution of a Guaranty, in form and substance satisfactory to the Bank. In connection therewith, the Borrower shall give notice to the Bank not less than ten (10) days prior to creating a subsidiary (or such shorter period of time as agreed to
by the Bank in its reasonable discretion), or acquiring the equity interests of any other person. In connection with the foregoing, the Borrower shall deliver to the Bank, with respect to each new Guarantor, such other documents and agreements as
reasonably required by the Bank, including, without limitation, resolutions, organizational documents and incumbency certificates with respect to such new Guarantor. 



 

	(b)	 Collateral. The Borrower will cause each Guarantor’s tangible and intangible personal property
now owned or hereafter acquired by it to be subject at all times to a first priority, perfected lien (subject to liens permitted hereunder) in favor of the Bank to secure the obligations incurred under this Agreement or otherwise in connection with
this Agreement or any Guaranty. The Borrower shall provide opinions of counsel and any filings and deliveries reasonably necessary in connection therewith to perfect the security interests therein, all in form and substance reasonably satisfactory
to the Bank. 


  

	(c)	 Further Assurances. At any time upon request of the Bank, promptly execute and deliver any and all
further instruments and documents and take all such other action as the Bank may deem necessary or desirable to maintain in favor of the Bank, liens and insurance rights on the collateral required to be delivered hereby that are duly perfected in
accordance with the requirements hereof, all other documents executed in connection herewith and all applicable laws. 



X.    Asset Coverage Ratio. 

To maintain an Asset Coverage Ratio of at least 1.0:1.0 at all times. 

  
 21 













 “Asset Coverage Ratio” means the ratio of Margined Assets to the outstanding
principal balance under the line of credit. “Margined Assets” means the sum of (a) 80% of accounts receivable, net of bad debt reserve, as shown on the most recent balance sheet of the Borrower prepared in accordance with GAAP as delivered
to Bank; plus (b) 50% of inventory (or, if less, raw materials and finished goods) as shown on such balance sheet, but in no event greater than the amount determined under clause (a) plus (c) 50% of gross machinery and equipment. 

 

	 9.	 hazardous substances 




 

	A.	 Indemnity Regarding Hazardous Substances. 



The Borrower will indemnify and hold harmless the Bank from any loss or liability the Bank incurs in connection with or as a result of this
Agreement, which directly or indirectly arises out of the use, generation, manufacture, production, storage, release, threatened release, discharge, disposal or presence of a hazardous substance which in each case had a material adverse effect on
the business, operations or assets of the Borrower or the collectability of the loans and advances made by the Bank hereunder, other than losses or liabilities arising out of the gross negligence, fraud or willful misconduct of the Bank. This
indemnity will apply whether the hazardous substance is on, under or about the Borrower’s property or operations or property leased to the Borrower. The indemnity includes but is not limited to attorneys’ fees (including the reasonable
estimate of the allocated cost of in-house counsel and staff). The indemnity extends to the Bank, its parent, subsidiaries and all of their directors, officers, employees, agents, successors, attorneys and
assigns.  
  

	B.	 Compliance Regarding Hazardous Substances. 



The Borrower represents and warrants that the Borrower has complied with all current and future laws, regulations and ordinances or other
requirements of any governmental authority relating to or imposing liability or standards of conduct concerning protection of health or the environment or hazardous substances. 

 

	C.	 Notices Regarding Hazardous Substances. 



Until full repayment of the loan, the Borrower will promptly notify the Bank in writing of any threatened or pending investigation of the
Borrower or its operations by any governmental agency under any current or future law, regulation or ordinance pertaining to any hazardous substance. 
  

	D.	 Site Visits, Observations and Testing. 



The Bank and its agents and representatives will have the right at any reasonable time, after giving reasonable notice to the Borrower, to
enter and visit any locations where the collateral securing this 

  
 22 













 
Agreement (the “Collateral”) is located for the purposes of observing the Collateral, taking and removing environmental samples, and conducting tests. The Borrower shall reimburse the
Bank on demand for the costs of any such environmental investigation and testing once per year per location. The Bank will make reasonable efforts during any site visit, observation or testing conducted pursuant to this paragraph to avoid
interfering with the Borrower’s use of the Collateral. The Bank is under no duty to observe the Collateral or to conduct tests, and any such acts by the Bank will be solely for the purposes of protecting the Bank’s security and preserving
the Bank’s rights under this Agreement. No site visit, observation or testing or any report or findings made as a result thereof (“Environmental Report”) (i) will result in a waiver of any default of the Borrower; (ii) impose any
liability on the Bank; or (iii) be a representation or warranty of any kind regarding the Collateral (including its condition or value or compliance with any laws) or the Environmental Report (including its accuracy or completeness). In the
event the Bank has a duty or obligation under applicable laws, regulations or other requirements to disclose an Environmental Report to the Borrower or any other party, the Borrower authorizes the Bank to make such a disclosure. The Bank may also
disclose an Environmental Report to any regulatory authority, and to any other parties as necessary or appropriate in the Bank’s judgment. The Borrower further understands and agrees that any Environmental Report or other information regarding
a site visit, observation or testing that is disclosed to the Borrower by the Bank or its agents and representatives is to be evaluated (including any reporting or other disclosure obligations of the Borrower) by the Borrower without advice or
assistance from the Bank. 
 “Hazardous substance” means any substance, material or waste that is or becomes designated or
regulated as “toxic,” “hazardous,” “pollutant,” or “contaminant” or a similar designation or regulation under any current or future federal, state or local law (whether under common law, statute, regulation or
otherwise) or judicial or administrative interpretation of such, including without limitation petroleum or natural gas. 
  

	E.	 Continuing Obligation. 



The Borrower’s obligations to the Bank under this Article, except the obligation to give notices to the Bank, shall survive termination of
this Agreement and repayment of the Borrower’s obligations to the Bank under this Agreement. 

 

	 10.	 default and remedies 




If any of the following events of default occurs, the Bank may do one or more of the following without prior notice except as required by law
or expressly agreed in writing by Bank: declare the Borrower in default, stop making any additional credit available to the Borrower, and require the Borrower to repay its entire debt immediately. If an event which, with notice or the passage of
time, will constitute an event of default has occurred and is continuing, the Bank has no obligation to make advances or extend additional credit under this Agreement. In addition, if any event of default occurs, the Bank shall have all rights,
powers and remedies available under any instruments and agreements required by or executed in connection with this Agreement, as well as all rights and remedies available at law or in equity. If an event of default occurs under the paragraph
entitled “Bankruptcy/Receivers,” below with respect to any Obligor, then the entire debt outstanding under this Agreement will automatically be due immediately. 

  
 23 














	A.	 Failure to Pay. 



The Borrower fails to make (i) a principal or interest payment under this Agreement when due, or (ii) any other payment hereunder
when due, and such failure shall continue for a period of five (5) days. 
  

	B.	 Other Bank Agreements. 



(a)     (i) Any default occurs under any other document executed or delivered in connection with this Agreement, including
without limitation, any note, guaranty, subordination agreement, mortgage or other collateral agreement, (ii) any Obligor purports to revoke or disavow any guaranty or collateral agreement provided in connection with this Agreement;
(iii) any representation or warranty made by any Obligor is false when made or deemed to be made; or (iv) any default occurs under any other agreement the Borrower (or any Obligor) or any of the Borrower’s related entities or
affiliates has with the Bank or any affiliate of the Bank. 
 (b)     If, in the Bank’s opinion, any breach under
subparagraph (a)(iv) above is capable of being remedied but the applicable document does not provide a cure or remedy period, the breach will not be considered an event of default under this Agreement for a period of twenty (20) days after
earlier of (x) the date that the Borrower knew or should have known of the default, and (y) the date on which the Bank gives written notice of the default to the Borrower. 

 

	C.	 Cross-default. 



Any default occurs under any agreement in connection with any credit any Obligor or any of the Borrower’s related entities or affiliates
has obtained from anyone else or which any Obligor or any of the Borrower’s related entities or affiliates has guaranteed if the default is not cured within “thirty (30)” days. 

 

	D.	 False Information. 



The Borrower or any other Obligor has given the Bank false or misleading information or representations. 

 

	E.	 Bankruptcy/Receivers. 



Any Obligor or any general partner of any Obligor files a bankruptcy petition, a bankruptcy petition is filed against any of the foregoing
parties, or any Obligor, or any general partner of any Obligor makes a general assignment for the benefit of creditors; or a receiver or similar official is appointed for a substantial portion of any Obligor’s business; or the business is
terminated, or such Obligor is liquidated or dissolved. 
  

	F.	 Lien Priority. 



The Bank fails to have an enforceable first lien (except for any prior liens to which the Bank has consented in writing) on or security
interest in any property given as security for this Agreement (or any guaranty). 
  

	G.	 Judgments. 



Any judgments or arbitration awards are entered against any Obligor in an aggregate amount of Five Hundred Thousand Dollars ($500,000) or more.


  
 24 














	H.	 Material Adverse Change. 



A material adverse change occurs, or is reasonably likely to occur, in any Obligor’s business condition (financial or otherwise),
operations or properties, or ability to repay its obligations as contemplated hereunder or under any document executed in connection with this Agreement. 
  

	I.	 Government Action. 



Any government authority takes action that the Bank believes materially adversely affects any Obligor’s financial condition or ability to
repay. 
  

	J.	 ERISA Plans. 



A reportable event occurs under Section 4043(c) of ERISA, or any Plan termination (or commencement of proceedings to terminate a Plan) or
the full or partial withdrawal from a Plan under Section 4041 or 4042 of ERISA occurs; provided such event or events could reasonably be expected, in the judgment of the Bank, to have a material adverse effect. 

 

	K.	 Covenants. 



Any default in the performance of or compliance with any obligation, agreement or other provision contained in this Agreement (other than those
specifically described as an event of default in this Article), and with respect to any such default that by its nature can be cured, such default shall continue for a period of thirty (30) days from its occurrence. 

 

	L.	 Forfeiture. 



A judicial or nonjudicial forfeiture or seizure proceeding is commenced by a government authority and remains pending with respect to any
property of Borrower or any part thereof, on the grounds that the property or any part thereof had been used to commit or facilitate the commission of a criminal offense by any person, including any tenant, pursuant to any law, including under the
Controlled Substances Act or the Civil Asset Forfeiture Reform Act, regardless of whether or not the property shall become subject to forfeiture or seizure in connection therewith.  

 

	 11.	 enforcing this agreement; miscellaneous 




 

	A.	 GAAP. 



Except as otherwise stated in this Agreement, all financial information provided to the Bank and all financial covenants will be made under
generally accepted accounting principles, consistently applied. 

  
 25 













 If at any time any change in GAAP would affect the computation of any financial ratio or
requirement set forth herein, and either the Borrower or the Bank shall so request, the Borrower and the Bank shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP;
provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Borrower shall provide to the Bank financial statements and other documents
required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP. 

 

	B.	 Governing Law. 



Except to the extent that any law of the United States may apply, this Agreement shall be governed and interpreted according to the laws of New
York (the “Governing Law State”), without regard to any choice of law, rules or principles to the contrary. Nothing in this paragraph shall be construed to limit or otherwise affect any rights or remedies of the Bank under federal law.

  

	C.	 Venue and Jurisdiction. 



The Borrower agrees that any action or suit against the Bank arising out of or relating to this Agreement shall be filed in federal court or
state court located in the Governing Law State. The Borrower agrees that the Bank shall not be deemed to have waived its rights to enforce this section by filing an action or suit against the Borrower or any Obligor in a venue outside of the
Governing Law State. If the Bank does commence an action or suit arising out of or relating to this Agreement, the Borrower agrees that the case may be filed in federal court or state court in the Governing Law State. The Bank reserves the right to
commence an action or suit in any other jurisdiction where any Borrower, any other Obligor, or any Collateral has any presence or is located. The Borrower consents to personal jurisdiction and venue in such forum selected by the Bank and waives any
right to contest jurisdiction and venue and the convenience of any such forum. The provisions of this section are material inducements to the Bank’s acceptance of this Agreement. 

 

	D.	 Successors and Assigns. 



This Agreement is binding on the Borrower’s and the Bank’s successors and assignees. The Borrower agrees that it may not assign this
Agreement without the Bank’s prior consent. The Bank may sell participations in or assign this loan and the related loan documents, and may exchange information about the Borrower and any other Obligor (including, without limitation, any
information regarding any hazardous substances) with actual or potential participants or assignees. If a participation is sold or the loan is assigned, the purchaser will have the right of set-off against the
Borrower. 
  

	E.	 Waiver of Jury Trial. 



EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO (a) CERTIFIES 

  
 26 













 
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER, (b) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER DOCUMENTS CONTEMPLATED HEREBY BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION AND
(c) CERTIFIES THAT THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE. 
  

	F.	 Waiver of Class Actions. 



The terms “Claim” or “Claims” refer to any disputes, controversies, claims, counterclaims, allegations of liability,
theories of damage, or defenses between Bank of America, N.A., its subsidiaries and affiliates, on the one hand, and the other parties to this Agreement, on the other hand (all of the foregoing each being referred to as a “Party” and
collectively as the “Parties”). Whether in state court, federal court, or any other venue, jurisdiction, or before any tribunal, the Parties agree that all aspects of litigation and trial of any Claim will take place without resort to any
form of class or representative action. Thus the Parties may only bring Claims against each other in an individual capacity and waive any right they may have to do so as a class representative or a class member in a class or representative action.
THIS CLASS ACTION WAIVER PRECLUDES ANY PARTY FROM PARTICIPATING IN OR BEING REPRESENTED IN ANY CLASS OR REPRESENTATIVE ACTION REGARDING A CLAIM. 
  

	G.	 Expenses. 



 

	(a)	 The Borrower shall pay to the Bank immediately upon demand the full amount of all payments, advances,
charges, costs and expenses, including reasonable attorneys’ fees, expended or incurred by the Bank in connection with (i) the negotiation and preparation of this Agreement and any related agreements, the Bank’s continued
administration of this Agreement and such related agreements, and the preparation of any amendments and waivers related to this Agreement or such related agreements, (ii) filing, recording and search fees, appraisal fees, field examination
fees, title report fees, and documentation fees with respect to any collateral and books and records of the Borrower or any other Obligor, (iii) the Bank’s costs or losses arising from any changes in law which are allocated to this
Agreement or any credit outstanding under this Agreement, and (iv) costs or expenses required to be paid by the Borrower or any other Obligor that are paid, incurred or advanced by the Bank. 



 

	(b)	 The Borrower will indemnify and hold the Bank harmless from any loss, liability, damages, judgments, and
costs of any kind (“Indemnified Expenses”) relating to or arising directly or indirectly out of (i) this Agreement or any document required hereunder, (ii) any credit extended or committed by the Bank to the Borrower hereunder,
and (iii) any litigation or proceeding related to or arising out of this Agreement, any such document, or any such credit, including, without limitation, any act resulting from (A) the Bank complying with instructions the Bank reasonably
believes are made by any Authorized Individual and (B) the Bank’s reliance on any Communication executed using an Electronic Signature, or in the form of an Electronic Record, that the Bank reasonably believes is made by any Authorized
Individual, other than Indemnified Expenses arising out of the gross negligence, fraud or willful misconduct of the Bank. This paragraph will survive this Agreement’s termination, and will benefit the Bank and its officers, employees, and
agents. 



  
 27 














	(c)	 The Borrower shall reimburse the Bank for any reasonable costs and attorneys’ fees incurred by the Bank
in connection with (a) the enforcement or preservation of the Bank’s rights and remedies and/or the collection of any obligations of the Borrower which become due to the Bank and in connection with any “workout” or restructuring,
and (b) the prosecution or defense of any action in any way related to this Agreement, the credit provided hereunder or any related agreements, including without limitation, any action for declaratory relief, whether incurred at the trial or
appellate level, in an arbitration proceeding or otherwise, and including any of the foregoing incurred in connection with any bankruptcy proceeding (including without limitation, any adversary proceeding, contested matter or motion brought by the
Bank or any other person) relating to the Borrower or any other person or entity. 


  

	H.	 Set-Off. 



Upon and after the occurrence and during the continuation of an event of default under this Agreement, (a) the Borrower hereby authorizes
the Bank at any time without notice and whether or not the Bank shall have declared any amount owing by the Borrower to be due and payable, to set off against, and to apply to the payment of, the Borrower’s indebtedness and obligations to the
Bank under this Agreement and all related agreements, whether matured or unmatured, fixed or contingent, liquidated or unliquidated, any and all amounts owing by the Bank to the Borrower, and in the case of deposits, whether general or special
(except trust and escrow accounts), time or demand and however evidenced, and (b) pending any such action, to hold such amounts as collateral to secure such indebtedness and obligations of the Borrower to the Bank and to return as unpaid for
insufficient funds any and all checks and other items drawn against any deposits so held as the Bank, in its sole discretion, may elect. The Borrower hereby grants to the Bank a security interest in all deposits and accounts maintained with the Bank
to secure the payment of all such indebtedness and obligations of the Borrower to the Bank. 
  

	I.	 One Agreement. 



This Agreement and any related security or other agreements required by this Agreement constitute the entire agreement between the Borrower and
the Bank with respect to each credit subject hereto and supersede all prior negotiations, communications, discussions and correspondence concerning the subject matter hereof. In the event of any conflict between this Agreement and any other
agreements required by this Agreement, this Agreement will prevail. 
  

	J.	 Notices. 



Unless otherwise provided in this Agreement or in another agreement between the Bank and the Borrower, all notices required under this
Agreement shall be personally delivered or sent by first class mail, postage prepaid, or by overnight courier, to the addresses on the signature page of this Agreement, or sent by facsimile to the fax number(s) listed on the signature page, or to
such other addresses as the Bank and the Borrower may specify from time to time in writing (any such notice a “Written Notice”). Written Notices shall be effective (i) if mailed, upon the earlier of receipt or five
(5) days after deposit in 

  
 28 













 
the U.S. mail, first class, postage prepaid, (ii) if telecopied, when transmitted, or (iii) if hand-delivered, by courier or otherwise (including telegram, lettergram or mailgram), when
delivered. In lieu of a Written Notice, notices and/or communications from the Bank to the Borrower may, to the extent permitted by law, be delivered electronically (i) by transmitting the communication to the electronic address provided by the
Borrower or to such other electronic address as the Borrower may specify from time to time in writing, or (ii) by posting the communication on a website and sending the Borrower a notice to the Borrower’s postal address or electronic
address telling the Borrower that the communication has been posted, its location, and providing instructions on how to view it (any such notice, an “Electronic Notice”). Electronic Notices shall be effective when the communication,
or a notice advising of its posting to a website, is sent to the Borrower’s electronic address. 
  

	K.	 Headings. 



Article and paragraph headings are for reference only and shall not affect the interpretation or meaning of any provisions of this Agreement.

  

	L.	 Counterparts. 



This Agreement may be executed in any number of counterparts, each of which, when so executed, shall be deemed to be an original, and all of
which when taken together shall constitute one and the same Agreement. Delivery of an executed counterpart of this Agreement (or of any agreement or document required by this Agreement and any amendment to this Agreement) by telecopy or other
electronic imaging means shall be as effective as delivery of a manually executed counterpart of this Agreement; provided, however, that the telecopy or other electronic image shall be promptly followed by an original if required by the Bank. 

 

	M.	 Borrower/Obligor Information; Reporting to Credit Bureaus. 



The Borrower authorizes the Bank at any time to verify or check any information given by the Borrower to the Bank, check the Borrower’s
credit references, verify employment, and obtain credit reports and other credit bureau information from time to time in connection with the administration, servicing and collection of the loans under this Agreement. The Borrower agrees that the
Bank shall have the right at all times to disclose and report to credit reporting agencies and credit rating agencies such information pertaining to the Borrower and all other Obligors as is consistent with the Bank’s policies and practices
from time to time in effect. 
  

	N.	 Customary Advertising Material. 



The Borrower consents to the publication by the Bank of customary advertising material relating to the transactions contemplated hereby using
the name, product photographs, logo or trademark of the Borrower. 
  

	O.	 Acknowledgement Regarding Any Supported QFCs. 



To the extent that this Agreement and any document executed in connection with this Agreement (collectively, “Loan Documents”)
provide support, through a guarantee or otherwise, for any Swap 

  
 29 













 
Contract or any other agreement or instrument that is a QFC (such support, “QFC Credit Support”, and each such QFC, a “Supported QFC”), the parties acknowledge
and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the
regulations promulgated thereunder, the “U.S. Special Resolution Regimes”) in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC
may in fact be stated to be governed by the laws of the Governing Law State and/or of the United States or any other state of the United States):  
  

	(a)	 In the event a Covered Entity that is party to a Supported QFC (each, a “Covered Party”)
becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and
any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC
Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a
proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to
no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. 



 

	(b)	 As used in this paragraph, the following terms have the following meanings: 



“BHC Act Affiliate” of a party means an “affiliate” (as such term is defined under, and interpreted
in accordance with, 12 U.S.C. 1841(k)) of such party. 
 “Covered Entity” means any of the following:
(i) a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R.
§ 47.3(b); or (iii) a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b). 

“Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12
C.F.R. §§ 252.81, 47.2 or 382.1, as applicable. 
 “QFC” has the meaning assigned to the term
“qualified financial contract” in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D). 

“Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward
bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap transactions, currency options, spot contracts, or
any other similar transactions or any combination of any of the 

  
 30 













 
foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to any master agreement, and (b) any and all transactions
of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and Derivatives Association, Inc., any International Foreign Exchange
Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations or liabilities under any Master Agreement. 

 

	P.	 Amendments. 



This Agreement may only be amended by a writing signed by the parties hereto; which, to the extent expressly agreed to by the Bank in its
discretion, may include being amended by an Electronic Record signed by the parties hereto using Electronic Signatures pursuant to the terms of this Agreement. 
  

	Q.	 Electronic Records and Signatures. 



This Agreement and any document, amendment, approval, consent, information, notice, certificate, request, statement, disclosure or
authorization related to this Agreement (each a “Communication”), including Communications required to be in writing, may, if agreed by the Bank, be in the form of an Electronic Record and may be executed using Electronic
Signatures, including, without limitation, facsimile and/or .pdf. The Borrower agrees that any Electronic Signature (including, without limitation, facsimile or .pdf) on or associated with any Communication shall be valid and binding on the Borrower
to the same extent as a manual, original signature, and that any Communication entered into by Electronic Signature, will constitute the legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with the
terms thereof to the same extent as if a manually executed original signature was delivered to the Bank. Any Communication may be executed in as many counterparts as necessary or convenient, including both paper and electronic counterparts, but all
such counterparts are one and the same Communication. For the avoidance of doubt, the authorization under this paragraph may include, without limitation, use or acceptance by the Bank of a manually signed paper Communication which has been converted
into electronic form (such as scanned into PDF format), or an electronically signed Communication converted into another format, for transmission, delivery and/or retention. The Bank may, at its option, create one or more copies of any Communication
in the form of an imaged Electronic Record (“Electronic Copy”), which shall be deemed created in the ordinary course of the Bank’s business, and destroy the original paper document. All Communications in the form of an
Electronic Record, including an Electronic Copy, shall be considered an original for all purposes, and shall have the same legal effect, validity and enforceability as a paper record. Notwithstanding anything contained herein to the contrary, the
Bank is under no obligation to accept an Electronic Signature in any form or in any format unless expressly agreed to by the Bank pursuant to procedures approved by it; provided, further, without limiting the foregoing, (a) to the extent the
Bank has agreed to accept such Electronic Signature, the Bank shall be entitled to rely on any such Electronic Signature purportedly given by or on behalf of any Obligor without further verification and (b) upon the request of the Bank any
Electronic Signature shall be promptly followed by a manually executed, original counterpart. For purposes hereof, “Electronic Record” and “Electronic Signature” shall have the meanings assigned to them,
respectively, by 15 USC §7006, as it may be amended from time to time. 

  
 31 














	R.	 Limitation of Interest and Other Charges. 



If, at any time, the rate of interest, together with all amounts which constitute interest and which are reserved, charged or taken by the Bank
as compensation for fees, services or expenses incidental to the making, negotiating or collection of the loan evidenced hereby, shall be deemed by any competent court of law, governmental agency or tribunal to exceed the maximum rate of interest
permitted to be charged by the Bank to the Borrower under applicable law, then, during such time as such rate of interest would be deemed excessive, that portion of each sum paid attributable to that portion of such interest rate that exceeds the
maximum rate of interest so permitted shall be deemed a voluntary prepayment of principal. As used herein, the term “applicable law” shall mean the law in effect as of the date hereof; provided, however, that in the event there is a change
in the law which results in a higher permissible rate of interest, then this Agreement shall be governed by such new law as of its effective date. 

[Signature Page Follows] 

  
 32 













 Signature Page 

The Borrower executed this Agreement as of the date stated at the top of the first page, intending to create an instrument executed under
seal. 
 Bank: 
  

			
	 Bank of America, N.A.

		
	 By:
	 	 /s/ Matthew Smith

	 Name:
	 	 Matthew Smith

	 Title:
	 	 Senior Vice President

	
	 Borrower:

	
	 Graham Corporation

		
	 By:
	 	 /s/ Jeffrey Glajch

	 Name:
	 	 Jeffrey Glajch

	 Title:
	 	 Vice President, CFO and Secretary


 Prepared by: Phillips Lytle LLP 

			
		
	 Address where notices to
	  	 Address where notices to

	 the Bank are to be sent:
	  	 the Borrower are to be sent:

		
	 Bank of America
	  	 Graham Corporation

	 Gateway Village-900 Building
	  	 20 Florence Ave.

	 NC1-026-06-06
	  	 Batavia, NY 14020

	 900 W. Trade St
	  	
	 Charlotte, NC 28255
	  	


  
 [Signature Page - Loan
Agreement] 













 USA Patriot Act Notice. 

Federal law requires Bank of America, N.A. (the “Bank”) to provide the following notice. The notice is not part of the
foregoing agreement or instrument and may not be altered. Please read the notice carefully. 
  

	(1)	 USA PATRIOT ACT NOTICE 



Federal law requires all financial institutions to obtain, verify and record information that identifies each person who opens an account or
obtains a loan. The Bank will ask for the Borrower’s legal name, address, tax ID number or social security number and other identifying information. The Bank may also ask for additional information or documentation or take other actions
reasonably necessary to verify the identity of the Borrower, guarantors or other related persons. 
 SCHEDULE A 

FEES 
  

	(a)	 Facility No. 1 and No. 2 Loan Fee. 



The Borrower agrees to pay a loan fee for Facility No. 1 and Facility No. 2 in the amount of One Hundred Thousand and 00/100 Dollars
($100,000.00). This fee is due on the date of this Agreement. 
  

	(b)	 Waiver Fee. 



If the Bank, at its discretion, agrees to waive or amend any terms of this Agreement, the Borrower will, at the Bank’s option, pay the
Bank a fee for each waiver or amendment in an amount advised by the Bank at the time the Borrower requests the waiver or amendment. Nothing in this paragraph shall imply that the Bank is obligated to agree to any waiver or amendment requested by the
Borrower. The Bank may impose additional requirements as a condition to any waiver or amendment. 
  

	(c)	 Late Fee. 



To the extent permitted by law, the Borrower agrees to pay a late fee in an amount not to exceed four percent (4%) of any payment that is more
than fifteen (15) days late; provided that such late fee shall be reduced to two percent (2%) of any required principal and interest payment that is not paid within fifteen (15) days of the date it is due if the loan is secured by a mortgage on an
owner-occupied residence. The imposition and payment of a late fee shall not constitute a waiver of the Bank’s rights with respect to the default. 
  

	(d)	 Returned Payment Fee. 



The Bank, in its discretion, may collect from the Borrower a returned payment fee each time a payment is returned or if there are insufficient
funds in the designated account when a payment is attempted through automatic payment. 
  

	(e)	 Letter of Credit Fees. 



Unless otherwise agreed in writing, the Borrower agrees to pay to the Bank, the customary issuance, presentation, amendment and other
processing fees, and other standard costs and charges, of the Bank relating to Letters of Credit as from time to time in effect. Such customary fees and standard costs and charges are due and payable on demand and are nonrefundable. 

 

	(f)	 Unused Commitment Fee. 



The Borrower agrees to pay a fee on any difference between the Facility No. 1 Commitment and the amount of credit it actually uses, determined
by the daily amount of credit outstanding during the specified period. The fee will be calculated at 0.25% per year. This fee is due on July 1, 2021, and on the same day of each following month until the expiration of the availability period.