exhibit10_2




REAFFIRMATION OF AND FIRST AMENDMENT TO
UNLIMITED GUARANTY AGREEMENT


This Reaffirmation and First Amendment to Unlimited Guaranty Agreement (this “Amendment”), dated as of the 2nd  day of July, 2012, is made by and between Daktronics, Inc., a South Dakota corporation (the “Borrower”) and Bank of America, N.A. (the “Bank”).


Recitals


A.        The Borrower and the Lender are parties to that certain Loan Agreement dated as of December 23, 2010, as amended by that certain First Amendment to Loan Agreement dated February 1, 2011, that certain Second Amendment to Loan Agreement dated November 15, 2011, and that certain Third Amendment to Loan Agreement of even date herewith  (as amended, the “Loan Agreement”), whereby Lender extended certain credit facilities to the Borrower upon the terms and conditions set forth in the Loan Agreement.


B.        Section  2.1  of  the  Loan  Agreement  provides  that  Bank  agrees  to  make available to Borrower’s Foreign Subsidiaries, certain Alternative Borrowing, provided that, among other conditions, the credit available to Borrower under the Loan Agreement would be reduced dollar-for-dollar by the amount of the Alternative Borrowing, and provided further that Borrower agrees to unconditionally and without limitation guarantee such Alternative Borrowing pursuant to the terms of an Unlimited Guaranty Agreement dated December 23, 2010, as amended by the Second Amendment to Loan Agreement (changing the principal amount referenced in paragraph “A” of the Recitals from $10,000,000 to $20,000,000) (as amended, the “Guaranty).   Capitalized terms used herein without definition shall have the meanings ascribed in the Loan Agreement and Guaranty.


C.        The parties are in mutual agreement that the Guaranty should be further amended as provided herein, the effect of which, among other things, includes an expansion of the Guaranty to cover additional Foreign Subsidiaries as well as an expansion of the types of products and services included as Alternative Borrowing.


NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained, it is agreed as follows:


1.         Amendments to Guaranty. The Guaranty is hereby amended as follows


(a)        Paragraph “B” of the Recitals is hereby amended in its entirety and as so amended is restated as follows:


“Section 2.1 of the Loan Agreement provides that Bank agrees to make Alternative Borrowing  (as  this  term  is  defined  in  the  Loan  Agreement)  available  to  Borrower’s  Foreign Subsidiaries (as this term is defined in the Loan Agreement, and each of the Foreign Subsidiaries shall be individually known as a “Foreign Subsidiary”), provided that, among other conditions, the credit available to Borrower under the Loan Agreement would be reduced dollar-for-dollar by the amount of the Alternative Borrowing, and provided further that Borrower agrees to unconditionally and without limitation guarantee such Alternative Borrowing.”







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(b) Paragraph “C” of the Recitals is amended by deleting the paragraph in its entirety and replacing with the following:


“[Intentionally Omitted]”


2.         No Other Changes. Except as explicitly amended by this Amendment, all of the terms and conditions of the Guaranty shall remain in full force and effect.


3.         Reaffirmation.  Borrower  hereby  ratifies  and  reaffirms  all  of  the  terms, conditions,  provisions,  agreements,  requirements,  promises,  obligations,  duties,  covenants  and representations applicable to it in the Guaranty, as amended above, and that the Guaranty remains in full force and effect and is valid, binding and fully enforceable in accordance with its terms.


4.         Representations and Warranties. Borrower hereby represents and warrants as follows:


(a)        it has the corporate power and authority to execute, deliver and perform the terms and provisions of this Amendment and each other  loan documents, including the Guaranty, to which it is a party and has taken all necessary corporate action to authorize the execution, delivery and performance by it of this Amendment and each such other  loan documents;


(b)       it  has duly executed and delivered  this Amendment and  each other  loan document to which it is a party, and this Amendment and each such other loan document constitute its legal, valid and binding obligations, enforceable in accordance with their terms, except to the extent that the enforceability hereof or thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law);


(c)        all of the representations and warranties contained in the Guaranty are correct on and as of the date hereof as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date.


5.         Miscellaneous.  This  Amendment  may  be  executed  in  any  number  of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.














[SIGNATURE PAGE TO FOLLOW]



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IMPORTANT:  READ BEFORE SIGNING.  THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER   TERMS   OR   ORAL   PROMISES   NOT   CONTAINED   IN   THIS   WRITTEN CONTRACT MAY BE LEGALLY ENFORCED.  YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT.




IN WITNESS WHEREOF, the parties have caused this Third Amendment to be duly executed as
of the date first written above.




	
		
	BORROWER:
	BANK:

	Daktronics, Inc.
	Bank of America, N.A.

	 
	 

	By:  /s/ William R. Retterath
	By:

	Name:  William R. Retterath
	Name: Michael T. Letsch

	Title:  CFO
	Title: Vice President

	 
	 

	By:  /s/ James B. Morgan
	 

	Name:  James B. Morgan
	 

	Title:  President and CEO
	 
















[SIGNATURE PAGE TO REAFFIRMATION OF AND FIRST AMENDMENT TO UNLIMITED GUARANTY AGREEMENT]





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