Document:

ex-10.5

 CORPORATE ADMINISTRATIVE SERVICES AGREEMENT 
  
 THIS AGREEMENT made effective as of the 15th day of April 2014. 
 

 BETWEEN: 
 Nogales Resources Corp., a Nevada Corporation, having offices at Calle Colombia, P.O. Box 80, C.P. 48351, Colonia 5 de Diciembre, Puerto Vallarta, Jalisco Mexico and 50 West Liberty Street Suite #880, Reno, Nevada, 89501. 
 (hereafter “Nogales”) 
 AND; 
 Melville Business Services Inc., a Corporation having a office at 601-8623 Granville Street, Vancouver, B.C. 
 (hereafter (“Melville”) 
 

 RECIETALS:
          WHEREAS, Nogales is engaged in the business of mineral exploration, and the conduct of such other activities as may be incidental or related thereto; and 
          WHEREAS, Nogales has and will have the need for administrative, related services from time to time, but has determined that it is not cost effective to maintain all the infrastructure associated therewith; and 
          WHEREAS, in the event that Nogales issues to the public shares of its capital stock pursuant to a registration statement under the Securities Act of 1933, as amended, Nogales desires to continue to obtain the foregoing services from Melville; and 
          WHEREAS, by this Agreement, Nogales and Melville desire to confirm their agreement with respect to services to be provided to Nogales commencing on April 15th 2014 (the "Effective Date"), and to set forth the basis for Melville’s providing further services of the type referred to herein; and 
          WHEREAS, Melville is able and willing to provide the foregoing services to Nogales, and Nogales desires to engage Melville as an independent contractor to provide the same in accordance with the terms set forth herein: 
          NOW, THEREFORE, in consideration of the foregoing and the mutual agreements, provisions and covenants contained herein, and for other good and valuable consideration, the receipt and legal sufficiency whereof are hereby acknowledged, the parties hereto further agree as follows: 
 

 
  

 ARTICLE I
 SECTION 1. ADMINISTRATIVE SERVICES.  
 1.1     Commencing on the Effective Date, Nogales hereby engages and retains Melville to provide or otherwise make available to Nogales the services described in this Section 1 (the "Administrative Services"), and Melville hereby accepts and agrees to provide such Administrative Services to Nogales, for the term and consideration as specified herein. The fee payable for such Administrative Services shall be determined in accordance with Section 3 hereof. 
 1.2. ACCOUNTING SERVICES. Melville shall assist Nogales with the following accounting services: maintenance of Nogales's general ledger; maintenance of Nogales's accounts payable and accounts receivable records; and maintenance of Nogales's fixed asset records. The services described in this Section 1.2 shall also be provided by Melville at the request of Nogales in connection with Nogales's preparation of any required filings with the Securities and Exchange Commission pursuant to United States securities laws. The services described in this Section 1.2 shall be provided by Melville until terminated pursuant to the provisions of Section 6.3 hereof. 
 1.3. CORPORATE RECORD-KEEPING SERVICES. Melville shall assist in maintaining all accounting records relating to Nogales, until such time as such records shall be disposed of in accordance with applicable legal requirements and Melville's normal record disposition policies.  
 

 ARTICLE II 
 SECTION 2.        ADDITIONAL SERVICES.  
 2.1 Beginning on such date or dates subsequent to the Effective Date as are mutually agreed to in writing by the parties, Melville will provide or otherwise make available to Nogales such services in addition to those described in Section 1 hereof as are reasonably requested by Nogales, subject in each case to the parties' agreement to financial consideration and other terms. In the event that Nogales desires to avail itself of any of such additional services, the parties shall negotiate in good faith to reach agreement on the scope and term of such services. When and if an agreement is reached, the parties shall prepare an appropriate schedule or addendum to this Agreement, in which the nature, scope and quality of such services is described in detail. Each such addendum shall be executed on behalf of each party hereto, shall be effective as of its date and shall, upon such effective date, be incorporated into and made an integral part of this Agreement. 
 

 

 

 

 

 

 

 

 

 2
 

 
  

 ARTICLE III
 SECTION 3. REIMBURSEMENT OF EXPENSES. 
 3.1 IN CONNECTION with the Administrative Services pursuant to Section1 hereof and Additional Services pursuant to Section 2 hereof, Nogales shall reimburse Melville for any and all expenses or costs ("Charges") incurred or paid by Melville on behalf of Nogales in the performance of any of its responsibilities under this Agreement (including an appropriate allocation of overhead and general and administrative costs). 
 3.2 UNLESS Melville and Nogales shall agree to a different arrangement contrary to this Section 3.2, Nogales shall pay to Melville a fee for Administrative Services and Additional Services in an amount of Two Hundred and Fifty Dollars ($250.00) per month plus an additional fee of Fifty Dollars ($50) per hour for Administrative and Additional Services incurred during a current billing period which is in excess of 5 hours previously incurred for that billing period.   
 3.3 THE CHARGES and Fees shall be billed and payment shall be made to Melville in U.S. Dollars. 
 3.4 NOGALES shall also pay any applicable sales or use taxes payable with respect to the Charges and the Fees. 
 3.5 MELVILLE shall, as and when necessary, prepare all applications, reports, statements and other documents showing the Charges, Fees and the related costs and expenses incurred or paid by Melville on behalf of Nogales in the performance of any of its responsibilities under this Agreement. 
 3.6 TO the extent that Nogales is billed by an outside provider directly, Nogales shall pay such bill directly. If Melville is billed by outside providers for services performed for Nogales pursuant to this Agreement, Melville may pay the bill and charge Nogales the amount of the bill or forward the bill to Nogales for payment by Nogales. A Fee will be payable on all amounts paid in connection with services related to Melville's responsibilities hereunder, regardless of whether Melville or Nogales paid such amounts; provided. 
 

 ARTICLE IV 
 SECTION 4. PAYMENT OF FEES. 
 4.1 AMOUNTS payable by Nogales for services provided by Melville under this Agreement shall be payable from and after the first day of the month following the month in which the Effective Date occurs. Thereafter, such amounts shall be paid monthly after the first day of the month following the month in which the services were provided. 
 

 

 3

 
  

 ARTICLE V
 SECTION 5. DISCLAIMER, LIMITED LIABILITY.
 5.1 MELVILLE will use reasonable efforts to make the Administrative Services available (and, if it agrees to provide the Additional Services, Additional Services) with substantially the same degree of care as it employs in making the same services available for its own operations; provided, however, that Melville shall not be liable to Nogales or any other person for any loss, damage or expense which may result therefrom or from any change in the manner in which Melville renders such services, so long as Melville deems such change necessary or desirable in the conduct of its own operations. Neither Melville or its agents who provide services to Nogales shall not be liable to Nogales or to any third party, including any governmental agency or Nogales's stockholders, for any claims, damages or expenses relating to the Administrative Services (and, if it agrees to provide the Additional Services, Additional Services) provided pursuant to this Agreement, except for willful malfeasance, bad faith or gross negligence in the performance of their duties or reckless disregard of their obligations and duties under the terms of this Agreement. Nogales shall have the ultimate responsibility for all services provided herein. 
 

 ARTICLE VI 
 SECTION 6.        TERM AND TERMINATION. 
 6.1 TERM. Except as provided in Section 6.2 hereof, the initial term of this Agreement shall commence on the Effective Date and continue on a month to month basis. This Agreement shall automatically renew at the end of the initial month for successive one-month terms until terminated in accordance with Section 6.3 hereof. 
 6.2 TERMINATION This Agreement or any Administrative Service specified in Section 1 hereof may be terminated by either party to this Agreement at anytime on 30 days' prior notice to the other party, or of other prior notice agreed to by the parties. 
 6.3 TERMINATION OF SPECIFIC SERVICES. Specific services provided hereunder may be terminated, or shall expire, as described in Section 1 hereof or in any schedule or addendum hereto. If and to the extent that Melville incurs expenses in connection with and resulting from termination of any specific services provided hereunder, Nogales shall reimburse Melville for such costs or expenses promptly upon receipt of an itemized account thereof 
 

 

 

 

 

 

 

 

 4
 

 
  6.4 POST-TERMINATION SERVICES. In the event of termination of this Agreement, or a service provided hereunder, pursuant to Section 6.3 hereof, Melville shall be required at Nogales's option to continue to provide the terminated services of the type then being provided to Nogales during the one-month period referred to in Section 
 

 6.3 hereof and, whether or not Nogales requests continuation of such services, Nogales shall continue to pay Melville the costs of such services for such one-month period. Subsequent to such one-month period, or in the event of termination of this Agreement pursuant to Section 6.3, corporate administrative services of the kind provided under the Agreement may continue to be provided to Nogales on an as-requested basis by Nogales, in which event Nogales shall be charged by Melville a fee pursuant to Section 3  and Section 4 of this Agreement. 
 

 ARTICLE VII 
 SECTION 7         OTHER ACTIVITIES OF MELVILLE  
 7.1       NOGALES hereby recognizes that Melville now renders and may continue to render administrative and other services to other clients that may or may not have policies and conduct activities similar to those of Nogales. Melville shall be free to render such advice and other services, and Nogales hereby consents thereto. Melville shall devote so much of its time and attention to the performance of its duties under this Agreement as it deems reasonable or necessary to perform the services required hereunder in a manner consistent with that in which such services have been performed by Melville in the past. 
 

 ARTICLE VIII 
 8.1 NOTICES. All notices and other communications hereunder shall be in writing and shall be delivered by hand or mailed by registered or certified mail (return receipt requested) or transmitted by facsimile to the parties at the addresses of each party written above (or at such other addresses for a party as shall be specified by like notice) and shall be deemed delivered upon personal delivery, upon actual receipt or on the third business day after deposit in the mail. 
 8.2. FORCE MAJEURE. Neither party shall be in default of this Agreement or liable to the other party for any delay or default in performance where occasioned by any cause of any kind or extent beyond its control, including but not limited to, armed conflict or economic dislocation resulting therefrom; embargoes; shortages of labor, raw materials, production facilities or transportation; labor difficulties; civil disorders of any kind; action of any civil or military authorities (including priorities and allocations); fires; floods; and accidents. The dates on which the obligations of a party are to be fulfilled shall be extended for a period equal to the time lost by reason of any delay arising directly or indirectly from: 
 

 

 5

 
  (a) Any of the foregoing causes, or 
 

 (b) Inability of that party, as a result of causes beyond its reasonable control, to obtain instruction or information from the other party in time to perform its obligations by such dates. 
 

 8.3. ENTIRE AGREEMENT. This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof and all prior agreements or understandings shall be deemed merged herein. No representations, warranties and certifications, express or implied, shall exist as between the parties except as stated herein. 
 8.4. AMENDMENTS. No amendments, waivers or modifications hereof shall be made or deemed to have been made unless in writing executed by the party to be bound thereby. 
 8.5. SEVERABILITY. If any provision in this Agreement or the application of such provision to any person or circumstance shall be invalid, illegal or unenforceable, the remainder of this Agreement or the application of such provision to persons or circumstances other than those to which it is held invalid, illegal or unenforceable shall not be affected thereby. 
 8.6. 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 this Agreement. 
 8.7.  SUCCESSORS AND ASSIGNS. This Agreement shall not be assignable, in whole or in part, directly or indirectly, by any party hereto without the prior written consent of the other party hereto, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.
  8.8. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada. 
 8.9. NO THIRD-PARTY BENEFICIARIES. This Agreement is solely for the benefit of the parties hereto and should not be deemed to confer upon third parties any remedy, claim, liability, reimbursement, claim of action or other right in excess of those existing without reference to this Agreement. 
 

 

 

 

 

 

 

 

 

 

 

 6
 

 
  IN WITNESS WHEREOF, the parties hereto have caused this Corporate Administrative Services Agreement to be executed, effective as of the date first written above. 
 

 

 Nogales Resources Corp. 
 Per: /s/ Misael Velasco Aguirre
 Misael Velasco Aguirre, President 
 Melville Business Services Inc. 
 Per: /s/ Darlene Sherritt
 Darlene Sherritt
 

 

 

 

 

 

 

 

 

 

 

 

 

 

7Exhibit 10.1_No. 1 Amendment to SVB Second Amended and Restated Loan and Security Agreement

AMENDMENT NO. 1
TO 
SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
This Amendment No. 1 to Second Amended and Loan and Security Agreement (this “Amendment”) is entered into this 29th day of September, 2014 (the “First Amendment Effective Date”) by and among Aviat Networks, Inc., a Delaware corporation (“Parent”), Aviat US., Inc. (“Opco,” together with Parent, the “US Borrowers”) and Aviat Networks (S) Pte. Ltd., a private company limited by shares formed under the laws of the Republic of Singapore (“Aviat Singapore” or “Singapore Borrower,” and together with the US Borrowers, the “Borrowers”), and Silicon Valley Bank (“Bank”).  Capitalized terms used herein without definition shall have the same meanings given them in the Loan Agreement (as defined below).
Recitals
A.Borrowers and Bank have entered into that certain Second Amended and Restated Loan and Security Agreement dated as of March 28, 2014 (as amended, restated, modified and/or supplemented from time to time, the “Loan Agreement”), pursuant to which Bank agreed to extend and make available to Borrowers certain advances of money.
B.Bank has extended credit to Borrowers for the purposes permitted in the Loan Agreement.  
C.Borrowers have requested that Bank amend the Loan Agreement to revise a financial reporting covenant, and make certain other revisions to the Loan Agreement as more fully set forth herein.
D.Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.
Agreement
NOW, THEREFORE, in consideration of the foregoing Recitals and intending to be legally bound, the parties hereto agree as follows:
		
	1.
	Amendment to Loan Agreement.

1.1Section 6.2 (Financial Statements, Reports, Certificates).  Subsection (c) of Section 6.2 of the Loan Agreement is hereby amended and restated in its entirety as follows:
“(c)    as soon as available, and within five (5) days of filing with the SEC, but no later than ninety (90) days after the last day of Parent’s fiscal year, audited consolidated financial statements prepared under GAAP (or IFRS, if applicable), consistently applied, together with an unqualified opinion on the financial statements from an independent certified public accounting firm acceptable to Bank in its reasonable discretion; provided, however, that Parent’s audited consolidated financial statements covering Parent’s fiscal year ended June 27, 2014 must be delivered on or before October 31, 2014;”
1.2Exhibit B to Loan Agreement (Form of Compliance Certificate).  Exhibit B to the Loan Agreement is hereby amended in its entirety by deleting it and replacing it with Exhibit B attached to this Amendment.  Exhibit B is the only attachment to this Amendment.

		
	2.
	Borrowers’ Representations And Warranties.  Each Borrower hereby represents and warrants that:

(a)immediately upon giving effect to this Amendment (i) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (ii) no Event of Default has occurred and is continuing;
(b)such Borrower has the corporate power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;
(c)the certificate of incorporation, bylaws and other organizational documents of such Borrower delivered to Bank in connection with the Loan Agreement remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;
(d)the execution and delivery by such Borrower of this Amendment and the performance by such Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized by all necessary corporate action on the part of such Borrower; and
(e)this Amendment has been duly executed and delivered by such Borrower and is the binding obligation of such Borrower, enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.
3.Limitation.  The amendments set forth in this Amendment shall be limited precisely as written and shall not be deemed (a) to be a waiver or modification of any other term or condition of the Loan Agreement or of any other instrument or agreement referred to therein or to prejudice any right or remedy which Bank may now have or may have in the future under or in connection with the Loan Agreement or any instrument or agreement referred to therein; or (b) to be a consent to any future amendment or modification or waiver to any instrument or agreement the execution and delivery of which is consented to hereby, or to any waiver of any of the provisions thereof.  Except as expressly amended hereby, the Loan Agreement shall continue in full force and effect.
4.Effectiveness.  This Amendment shall become effective upon (i) delivery of this Amendment, duly executed by each Borrower and Bank, and (ii) payment of all fees and expenses, as described in Section 5 of this Amendment.
5.Fees and Expenses.  Borrowers agree to pay Bank Expenses (including the fees and expenses of Bank’s counsel, advisors and consultants) accrued and incurred in connection with the transactions contemplated by this Amendment and all other Bank Expenses (including the fees and expenses of Bank’s counsel, advisors and consultants) payable in accordance with the Loan Agreement.
6.Counterparts.  This Amendment may be signed in any number of counterparts, and by different parties hereto in separate counterparts, with the same effect as if the signatures to each such counterpart were upon a single instrument.  All counterparts shall be deemed an original of this Amendment.
7.Integration.  This Amendment and any documents executed in connection herewith or pursuant hereto contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, offers and negotiations, oral or written, with respect thereto and no extrinsic evidence whatsoever may be introduced in any judicial or arbitration proceeding, if any, involving this Amendment; except that any financing statements or other agreements or instruments filed by Bank with 

respect to Borrowers and the Collateral shall remain in full force and effect.  This Amendment is a Loan Document.
8.Choice of Law, Venue, Jury Trial Waiver, and Judicial Reference.  THIS AMENDMENT SHALL BE SUBJECT TO THE PROVISIONS REGARDING CHOICE OF LAW AND VENUE, JURY TRIAL WAIVER, REFERENCE PROCEEDINGS AND ARBITRATION SET FORTH IN SECTION 11 OF THE LOAN AGREEMENT, AND SUCH PROVISIONS ARE INCORPORATED HEREIN BY REFERENCE, MUTATIS MUTANDIS.
[Signature Pages Follow]

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

BORROWERS:
AVIAT NETWORKS, INC.

By    /s/ Edward Hayes                      
Name: Edward J. Hayes
Title:   CFO

AVIAT U.S., INC.

By    /s/ Edward Hayes                     
Name: Edward Hayes
Title:   CFO

AVIAT NETWORKS (S) PTE. LTD.

By    /s/ Kevin Holwell                    
Name: Kevin Holwell
Title:   Director

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

BANK:
SILICON VALLEY BANK

By    /s/ Stephen Chang                   
Name: Stephen Chang
Title:   Vice President

EXHIBIT B 

FORM OF COMPLIANCE CERTIFICATE

TO:    SILICON VALLEY BANK                        Date:  
FROM:  AVIAT NETWORKS, INC.

The undersigned authorized officer of Aviat Networks, Inc. (“Administrative Borrower”) certifies that under the terms and conditions of the Second Amended and Restated Loan and Security Agreement dated as of March 28, 2014 (as amended, modified, supplemented or restated from time to time, the “Loan Agreement”), by and among Administrative Borrower, Aviat U.S., Inc. (“Opco”), Aviat Networks (S) Pte. Ltd. (“Singapore Borrower” and together with the Administrative Borrower and Opco, each a “Borrower” and collectively, “Borrowers”) and Silicon Valley Bank (“Bank”): 
(1) Each Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below; (2) there are no Events of Default in existence; (3) all representations and warranties in the Loan Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; (4) each Borrower, and each of its Subsidiaries, has timely filed all material tax returns and reports that are required to be filed, and each Borrower has timely paid all material foreign, federal, state and local taxes, assessments, deposits and contributions owed by each Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Loan Agreement; (5) (a)there are no collective bargaining agreements covering the employees of any Borrower or any of their domestic Subsidiaries, (b) there is not pending, nor (to the knowledge of any Borrower) is there threatened, any strike, walkout, slowdown or work stoppage, or any unfair labor practice complaint or grievance or arbitration proceeding arising out of or under any collective bargaining agreement covering the employees of any Borrower or any of their Subsidiaries that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Change, and (c) the hours worked and payments made to employees of Borrowers and their domestic Subsidiaries have not been in violation in any material respect of the Fair Labor Standards Act or any other applicable law dealing with such matters; and (6) Borrowers are in compliance with Sections 6.1(b) and 6.8 and of the Loan Agreement.  

Attached are the required documents supporting the certification.  The undersigned certifies that the attached financial statements are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes and except, in the case of unaudited financial statements, for the absence of footnotes and subject to year-end adjustments.  The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Loan Agreement, and that compliance is determined not just at the date this certificate is delivered.  Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Loan Agreement.

	
			
	Please indicate compliance status by circling Yes/No under “Complies” column.

	 

	Reporting Covenant
	Required
	Complies

	Transaction Report (in connection with Advance)
	With each request for an Advance
	Yes   No

	Monthly Transaction Report
	Within 30 days of month end when Streamline Period is in effect for 6 months after the Effective Date and each month thereafter, within 20 days of month end when Streamline Period is in effect
	Yes   No

	Weekly Transaction Report
	No later than Friday each week when Streamline Period is not in effect
	Yes   No

	Cash holdings report
	Within 30 days of month end
	Yes   No

	Quarterly financial statements with Compliance Certificate
	Within 5 days of filing with the SEC,
but no later than 45 days after fiscal 
quarter end
	Yes   No

	Monthly financial statements with Compliance Certificate
	Within 30 days of month end
	Yes   No

	Monthly Borrowing Base Reports
	Within 30 days of month end when
Streamline Period is in effect
	Yes   No

	Weekly Borrowing Base Reports
	No later than Friday each week when Streamline Period is not in effect
	Yes   No

	Annual financial statement (CPA Audited) + Compliance 
Certificate
	Within 5 days of filings with the SEC but no later than 90 days after FYE (except for Parent’s audited consolidated annual financial statements covering Parent’s fiscal year ended June 27, 2014, which must be delivered on or before October 31, 2014)
	Yes   No

	10‐Q, 10‐K and 8-K
	Within 5 days after filing with SEC
	Yes   No

	Annual operating budgets for upcoming fiscal year and board approval of such annual operating budgets
	Within 45 days prior to the FYE but 
evidence of board approval to be delivered by September 15 of such fiscal year
	Yes   No

	Report of any legal actions pending or threatened in writing against Borrower or any of its Subsidiaries that could result in damages or costs to Borrower or any of its Subsidiaries of, individually or in the aggregate, $1,000,000 or more
	Promptly
	Yes   No

	
					
	Financial Covenant
	Required
	Actual
	Complies

	Adjusted Quick Ratio
	1.05:1.00
	____:1.00
	Yes   No

	Maintain on a Quarterly Basis:
	 
	 
	 

	Minimum EBITDA
	Fiscal Quarter End
	Minimum EBITDA
	 
	Yes   No

	March 28, 2014
	($17,000,000)

	June 27, 2014*
	($27,000,000)

	September 26, 2014*
	($12,000,000)

	December 26, 2014*
	($8,000,000)

	March 27, 2015*
	($3,000,000)

	June 26, 2015*
	$1.00

	September 25, 2015 and thereafter*
	TBD

*measured on a trailing two fiscal quarter basis

The following financial covenant analys[is][es] and information set forth in Schedule 1 attached hereto are true and accurate as of the date this Certificate is delivered to Bank as set forth in the first line of this Certificate.

The following are the exceptions with respect to the certification above:  (If no exceptions exist, state “No exceptions to note.”)

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

	
		
	ADMINISTRATIVE BORROWER:

AVIAT NETWORKS, INC.

By:  ______________________________
        Name:  ________________________
        Title:    ________________________

	BANK USE ONLY

Received by: _________________________
AUTHORIZED SIGNER
Date: _______________________________

Verified: ____________________________
AUTHORIZED SIGNER
Date: _______________________________

Compliance Status:        Yes     No

Schedule 1 to Compliance Certificate

Financial Covenants of Borrower

In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern.

Dated:    ____________________

I.    Adjusted Quick Ratio (Section 6.9(a))

Required:    1.05:1.00

Actual:    

	
			
	A.1.
	Unrestricted cash and Cash Equivalents of Borrowers, net billed accounts receivable  and investments with Bank with maturities of fewer than 12 months determined according to GAAP
	$_______

	B.1.
	All obligation and liabilities of Borrowers to Bank
	$_______

	B.2.
	Aggregate amount of Borrowers’ Total Liabilities maturing within 1 year (without duplication)
	$_______

	B.3.
	 Current Liabilities (B.1. plus B.2.)
	$_______

	C.1.
	Deferred Revenue
	$_______

	D.1.
	Consolidated Funded Indebtedness (without duplication)
	$_______

	E.1.
	Current Liabilities (less Deferred Revenue) plus, without duplication, Consolidated Funded Indebtedness (B.3. minus C.1. plus D.1)
	$_______

	F.
	Adjusted Quick Ratio (ratio of A.1. to E.1)
	1.___:1.00

Is line F at least 1.05? 

_______      No, not in compliance                _______      Yes, in compliance

II.    EBITDA (Section 6.9(b))
Required:
	
		
	Fiscal Quarter End
	Minimum EBITDA

	March 28, 2014
	($17,000,000)

	June 27, 2014*
	($27,000,000)

	September 26, 2014*
	($12,000,000)

	December 26, 2014*
	($8,000,000)

	March 27, 2015*
	($3,000,000)

	June 26, 2015*
	$1.00

	September 25, 2015 and
thereafter*
	TBD

	*measured on a trailing two fiscal quarter basis

Actual:

	
			
	A.
	Consolidated Net Income
	$______________

	 
	To the extent deducted in the calculation of Net Income (Line A):
	 

	 
	(i)    Consolidated Interest Charges
	$______________

	 
	(ii)   Income tax expense
	$______________

	 
	(iii)  Depreciation and amortization expense
	$______________

	 
	(iv)  Restructuring charges incurred in connection with impairment of real estate (to the extent 
        agreed to by Bank in writing)
	$______________

	 
	(v)   Non-cash stock-based compensation expense
	$______________

	 
	(vi)  Non-cash charges for customer inventory due to downward revaluation
	$______________

	 
	(vii)  Non-cash charges related to discontinued operations occurring prior to the
Effective Date
	$______________

	 
	(viii) Other non-recurring non-cash expenses
	$______________

	B.
	Sum of (i) through (viii)
	$______________

	 
	To the extent included in calculating Consolidated Net Income (Line A):
	 

	 
	(i)    Income tax credits
	$______________

	 
	(ii)   Other non-cash items increasing Consolidated Net Income
	$______________

	C.
	Sum of Line (i) through (ii)
	$______________

	D.
	EBITDA (A. plus B. minus C.)
	$______________

Is Line D at least the amount required (see chart above)?          _____  No, not in compliance    _____  Yes, in compliance

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}]]