Document:

Exhibit
10.11

FIRST AMENDMENT

                    FIRST
AMENDMENT, dated as of March 7, 2011 (this “Amendment”), to the AMENDED AND RESTATED CREDIT AGREEMENT,
dated as of September 30, 2010 (as amended, supplemented or modified from time
to time, the “Credit Agreement”), among CLOPAY AMES TRUE TEMPER LLC, a
Delaware limited liability company, CLOPAY AMES TRUE TEMPER HOLDING CORP., a
Delaware corporation (the “Borrower”), the other Loan Parties party
thereto, the several banks and other financial institutions or entities from
time to time parties thereto (the “Lenders”) and JPMORGAN CHASE BANK,
N.A., as administrative agent (the “Administrative Agent”). 

W I T N E S S E T H:

                    WHEREAS,
the Borrower, the Lenders and the Administrative Agent are parties to the
Credit Agreement;

                    WHEREAS,
the Borrower has requested that the Required Lenders approve certain provisions
of the Credit Agreement as set forth herein; and 

                    WHEREAS,
pursuant to such request, the Required Lenders are willing to consent to such
amendments on the terms set forth herein; 

                    NOW,
THEREFORE, in consideration of the premises and mutual covenants contained
herein, the Borrower, the Administrative Agent and the Required Lenders hereby
agree as follows:

                    1.
Defined Terms. Unless otherwise
defined herein, terms defined in the Credit Agreement and used herein shall
have the meanings given to them in the Credit Agreement. 

                    2.
Amendments to Section 1.01 (Defined Terms).

                    (a)
Section 1.01 of the Credit Agreement is hereby amended by adding the following
definitions in proper alphabetical order:

	
  

 	
  

 
	
  

 	
           “Senior
 Unsecured Note Indenture” means that certain Indenture to be entered into
 by Griffon and certain of its Subsidiaries in connection with the issuance of
 the Senior Unsecured Notes, together with all instruments and other
 agreements entered into by Griffon or such Subsidiaries in connection
 therewith.

 
	
  

 	
  

 
	
  

 	
           “Senior
 Unsecured Notes” means the Senior Unsecured Notes of Griffon in the
 aggregate principal amount of up to $550,000,000 issued pursuant to the
 Senior Unsecured Note Indenture on or prior to June 30, 2011.

 

                    (b)
The definition of “Group Member” is hereby amended by adding the following
proviso at the end thereof:

                    “provided
that, solely for purposes of paragraphs (f) and (g) in Article VII and
the definition of Material Indebtedness, Griffon shall be deemed to be a Group
Member”.

                    (c)
The definition of “Fixed Charge Coverage Ratio” is hereby amended by adding the
following proviso at the end of the first sentence thereof:

	
  

 	
  

 
	
  

 	
           “provided
 that in no event shall any Interest Expense or Indebtedness in respect of the
 Senior Unsecured Notes be included in the calculation of the Fixed Charge
 Coverage Ratio (including, without limitation, for purposes of determining
 EBITDA) for any purpose required by this Agreement to the extent that any Interest
 Expense of Griffon in respect of the Senior Unsecured Notes (or the
 Indebtedness of Griffon in respect of the Senior Unsecured Notes) would
 otherwise be included in any such calculation as a result of the
 Borrower or the Guarantor’s Guarantee
 thereof (including, without limitation, as a result of any payments made by
 the Borrower to Griffon for that purpose)”.

 
	
  

 	
  

 
	
  

 	
           (d)
 The definition of “Maturity Date” is hereby amended by deleting the date
 “September 30, 2015” and substituting in lieu thereof the phrase “the date
 that is the six-month anniversary of the date of the issuance of the Senior
 Unsecured Notes”.

 

                    3.
Amendment to Section 6.01(a) (Indebtedness; Guarantees). Section 6.01(a)
of the Credit Agreement is hereby amended by (a) deleting the “and” at the end
of clause (xvii) thereof, (b) deleting the “.” at the end of clause (xviii)
thereof and substituting in lieu thereof “; and”, (c) inserting the following
new clause (xix):

                    “(xix)
(i) unsecured Indebtedness of the Borrower owed to Griffon the net cash
proceeds of which are used either to (x) repay all outstanding loans (and
related expenses) under the Term Loan Credit Agreement, or (y) prior to a
Permitted Change of Control Transaction, for general corporate purposes,
provided that such Indebtedness shall be subordinated to the Obligations on
terms and conditions reasonably satisfactory to the Administrative Agent and
(ii) prior to a Permitted Change of Control Transaction, unsecured Indebtedness
of Griffon to the Loan Parties permitted by Section 6.06(p)(ii).”, and

                    (d)
adding the following clause at the end of the first sentence of the final
paragraph of Section 6.01(a):

	
  

 	
  

 
	
  

 	
           “or as
 permitted under Section 6.01(a)(xix)”.

 

                    4.
Amendment to Section 6.01(b) (Indebtedness; Guarantees). Section 6.01(b)
of the Credit Agreement is hereby amended by (a) deleting the “and” at the end
of clause (iv) thereof, (b) deleting the “.” at the end of clause (v) thereof
and substituting in lieu thereof “; and” and (c) inserting the following new
clause (vi):

	
  

 	
  

 
	
  

 	
           “(vi)
 obligations of the Borrower and the Guarantors in respect of their Guarantees
 of the Senior Unsecured Notes.”

 

                    5.
Amendment to Section 6.06 (Investments and Acquisitions). Section 6.06
of the Credit Agreement is hereby amended by (a) deleting the “and” at the end
of clause (o) thereof, (b) renumbering clause (p) thereof as clause (q)
thereof, and (c) inserting the following new clause (p):

	
  

 	
  

 
	
  

 	
           “(p) (i) Investments
 in the Loan Parties by Griffon consisting of unsecured Indebtedness permitted
 by Section 6.01(a)(xix) (or a capital contribution for the same purposes as required thereby), (ii) prior to a
 Permitted Change of Control Transaction, Investments by the Loan Parties in
 Griffon consisting of unsecured Indebtedness, so long as, after giving pro
 forma effect to thereto, (A) no Default or Event of Default shall have
 occurred and be continuing, and (B) Availability shall be at least 25% of the
 Revolving Commitment for each of the most recent 30 days and, after giving
 effect thereto, and (iii) Guarantees by the Borrower and the Guarantors of
 the Senior Unsecured Notes, and;”.

 

2

                    6.
Amendment to Section 6.07(b) (Restricted Payments). Section 6.07(b) of
the Credit Agreement is hereby amended by:

	
  

 	
  

 
	
  

 	
           (a)
 inserting “of any Group Member” after the phrase “in respect of principal of
 or interests on any Indebtedness” in the first sentence thereof, 

 
	
  

 	
  

 
	
  

 	
           (b)
 inserting the following proviso at the end of clause (ii) thereof:

 
	
  

 	
  

 
	
  

 	
 “provided
 that, notwithstanding the foregoing, the Term Loan Credit Agreement
 may be repaid in full in connection with the issuance of the Senior Unsecured
 Notes;”, and

 
	
  

 	
  

 
	
  

 	
           (c)
 deleting the proviso at the end of clause (iii) thereof.

 

                    7.
Amendment to Section 6.08 (Transactions with Affiliates). Section 6.08
of the Credit Agreement is hereby amended by (a) deleting sub-clause (ii) of
the proviso at the end of clause (c) thereof, (b) deleting the “and” at the end
of clause (d) thereof, (c) deleting the “.” at the end of clause (e) thereof
and substituting in lieu thereof “; and” and (d) inserting the following new
clauses (f) and (g):

	
  

 	
  

 
	
  

 	
           “(f)
 obligations of the Borrower and the Guarantors in respect of their Guarantees
 of the Senior Unsecured Notes; and

 
	
  

 	
  

 
	
  

 	
           (g)
 obligations consisting of the intercompany Indebtedness permitted by Section
 6.01(a)(xix).”

 

                    8.
Amendment to Section 6.09(a) (Restrictive Agreements). Section 6.09(a)
of the Credit Agreement is hereby amended by deleting the “or (iv)” at the end
of clause (iii) thereof and substituting in lieu thereof:

	
  

 	
  

 
	
  

 	
           “, (iii)
 Senior Unsecured Note Indenture or (iv)”.

 

                    9.
Amendment to Article VII (Events of Default). Article VII of the Credit
Agreement is hereby amended by (a) deleting the phrase “(and, prior to a
Permitted Change of Control Transaction, Griffon or the Parent)” in each place
that it occurs in paragraphs (h), (i) and (j) thereof.

                    10.
Effectiveness. This Amendment
shall become effective on the date (the “First Amendment Effective Date”)
on which the following conditions precedent shall have been satisfied: 

	
  

 	
  

 
	
  

 	
                (a)
 Amendment. The Administrative
 Agent shall have received this Amendment, duly executed and delivered by the
 Borrower, the Required Lenders and the Administrative Agent. 

 
	
  

 	
  

 
	
  

 	
                (b)
 Senior Unsecured Notes. The Senior Unsecured Notes shall have been issued
 on or prior to June 30, 2011.

 
	
  

 	
  

 
	
  

 	
                (c)
 Acknowledgement and Consent. The Administrative Agent shall have
 received an Acknowledgement and Consent in the form attached hereto as Annex
 A, executed and delivered by each Loan Party.

 
	
  

 	
  

 
	
  

 	
                (d)
 Representations and Warranties. Each of the representations and
 warranties made by any Loan Party in the Loan Documents shall be true and
 correct in all material respects on and 

 

3

	
  

 	
  

 
	
  

 	
 as of the
 First Amendment Effective Date as if made on and as of such date (or, if any
 such representation or warranty is expressly stated to have been made as of a
 specific date, as of such specific date).

 
	
  

 	
  

 
	
  

 	
                (e)
 No Default. After giving
 effect to this Amendment (as in effect as of the First Amendment Effective
 Date), no Default or Event of Default shall have occurred and be continuing.

 

                    11.
Continuing Effect of the Credit Agreement. This Amendment shall not constitute an amendment of any other
provision of the Credit Agreement not expressly referred to herein and shall
not be construed as a waiver or consent to any further or future action on the
part of the Borrower that would require a waiver or consent of the Lenders or
the Administrative Agent. Except as
expressly amended hereby, the provisions of the Credit Agreement are and shall
remain in full force and effect.

                    12.
Counterparts. This Amendment may
be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single instrument. Delivery of an executed counterpart of a
signature page of this Amendment by telecopy or electronic transmission shall
be effective as delivery of a manually executed counterpart of this Amendment.

                    13.
GOVERNING LAW. THIS AMENDMENT
SHALL BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS
OF THE STATE OF NEW YORK. 

                    14.
Expenses. The Borrower agrees to
pay or reimburse the Administrative Agent for all of its out-of-pocket costs
and expenses incurred in connection with the preparation, negotiation and
execution of this Amendment, including, without limitation, the reasonable fees
and disbursements of counsel to the Administrative Agent. 

[rest of page intentionally left blank]

4

                    IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered by their proper and duly authorized officers as of the
day and year first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CLOPAY AMES
 TRUE TEMPER HOLDING CORP.,

 
	
  

 	
  

 	
  

 
	
  

 	
 By 

 	
    /s/ Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	
 Title:
 Treasurer

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 JPMORGAN
 CHASE BANK, N.A., individually, as Administrative Agent, an Issuing Bank,
 Swingline Lender and as a Lender

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By 

 	
    /s/ Donna M.
 DiForio

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Donna
 M. Diforio

 	
  

 
	
  

 	
  

 	
 Title: Vice
 President

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Manufacturers
 and Traders Trust Company, as a Lender

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ William
 S. Terraglio

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: William
 S. Terraglio

 	
  

 
	
  

 	
  

 	
 Title: Vice
 President

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 DEUTSCHE
 BANK TRUST COMPANY AMERICAS,

 as a Lender

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ Omayra
 Laucella

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Omayra
 Laucella

 	
  

 
	
  

 	
  

 	
 Title: Vice
 President

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ Evelyn
 Thierry

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Evelyn
 Thierry

 	
  

 
	
  

 	
  

 	
 Title:
 Director

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Bank of
 America, N.A, as and Issuing Bank and as a Lender

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ Allan R.
 Juleus

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Allan
 R. Juleus

 	
  

 
	
  

 	
  

 	
 Title: SVP

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 HSBC Bank
 (USA), N.A., as a Lender

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
    /s/ Kysha A.
 Pierre-Louis

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Kysha
 A. Pierre-Louis

 	
  

 
	
  

 	
  

 	
 Title: Vice
 President

 	
  

 

ANNEX A

ACKNOWLEDGEMENT AND CONSENT

          Each of the
parties hereto hereby acknowledges and consents to the First Amendment, dated
as of March 7, 2011 (the “Amendment”; capitalized terms used herein, but
not defined, shall have the meanings set forth in the Amendment), to the
Amended and Restated Credit Agreement, dated as of September 30, 2010 (as
amended, supplemented or modified from time to time, the “Credit Agreement”),
among CLOPAY AMES TRUE TEMPER LLC, a Delaware limited liability company, CLOPAY
AMES TRUE TEMPER HOLDING CORP., a Delaware corporation, the several banks and
other financial institutions or entities from time to time parties thereto and
JPMORGAN CHASE BANK, N.A., as administrative agent, and agrees with respect to
each Loan Document to which it is a party:

          (a) all of
its obligations, liabilities and indebtedness under such Loan Document shall
remain in full force and effect on a continuous basis after giving effect to
the Amendment and its guarantee, if any, of the obligations, liabilities and
indebtedness of the Loan Parties under the Credit Agreement shall extend to and
cover Loans made pursuant to the increased Aggregate Commitment and interest
thereon and fees and expenses and other obligations in respect thereof and in
respect of commitments related thereto; and

          (b) all of
the Liens and security interests created and arising under such Loan Document
remain in full force and effect on a continuous basis, and the perfected status
and priority of each such Lien and security interest continue in full force and
effect on a continuous basis, unimpaired, uninterrupted and undischarged, after
giving effect to the Amendment, as collateral security for its obligations, liabilities
and indebtedness under the Credit Agreement and under its guarantees, if any,
in the Loan Documents.

[Remainder of page intentionally left blank.]

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CLOPAY AMES
 TRUE TEMPER HOLDING CORP.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
    /s/ Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	
 Title:
 Treasurer

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CLOPAY AMES
 TRUE TEMPER LLC

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
    /s/ Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	
 Title:
 Treasurer

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CLOPAY
 PLASTIC PRODUCTS COMPANY, INC

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
    /s/ Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	
 Title:
 Treasurer

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CLOPAY
 BUILDING PRODCUTS COMPANY, INC..

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
    /s/ Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	
 Title:
 Treasurer

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CLOPAY
 BUILDING PRODUCTS INTERNATIONAL SALES CORPORATION

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
    /s/ Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	
 Title:
 Treasurer

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CLOPAY
 TRANSPORTATION COMPANY

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
    /s/ Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	
 Title:
 Treasurer

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CLOPAY
 ACQUISITION CORP.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
    /s/ Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Thomas
 D. Gibbons

 	
  

 
	
  

 	
  

 	
 Title:
 Treasurer

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 CHATT
 HOLDINGS INC.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
    /s/ Duane R.
 Greenly

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Duane
 R. Greenly

 	
  

 
	
  

 	
  

 	
 Title:
 President & CEO

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 ATT HOLDING
 CO. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
    /s/ Duane R.
 Greenly

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Duane
 R. Greenly 

 	
  

 
	
  

 	
  

 	
 Title:
 President & CEO 

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 AMES TRUE
 TEMPER, INC. 

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By

 	
    /s/ Duane R.
 Greenly

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Duane
 R. Greenly 

 	
  

 
	
  

 	
  

 	
 Title:
 President & CEOExhibit 10.12

FIRST AMENDMENT

                    FIRST
AMENDMENT, dated as of March 7, 2011 (this “Amendment”), to the CREDIT AGREEMENT, dated as of March 31,
2008 (as amended, supplemented or modified from time to time, the “Credit
Agreement”), among GRITEL HOLDING CO., INC., a Delaware corporation,
TELEPHONICS CORPORATION, a Delaware corporation (the “Borrower”), the
other Loan Parties party thereto, the several banks and other financial
institutions or entities from time to time parties thereto (the “Lenders”)
and JPMORGAN CHASE BANK, N.A., as administrative agent (the “Administrative
Agent”). 

W I T N E S S E T H:

                    WHEREAS,
the Borrower, the Lenders and the Administrative Agent are parties to the
Credit Agreement;

                    WHEREAS,
the Borrower has requested that the Required Lenders approve certain provisions
of the Credit Agreement as set forth herein; and 

                    WHEREAS,
pursuant to such request, the Required Lenders are willing to consent to such
amendments on the terms set forth herein; 

                    NOW,
THEREFORE, in consideration of the premises and mutual covenants contained
herein, the Borrower, the Administrative Agent and the Required Lenders hereby
agree as follows:

                    1. Defined
Terms. Unless otherwise defined herein, terms defined in the Credit
Agreement and used herein shall have the meanings given to them in the Credit
Agreement. 

                    2.
Amendments to Section 1.01 (Defined Terms).

                    (a) Section 1.01 of the Credit Agreement is hereby amended by adding the
following definitions in proper alphabetical order:

	
  

 	
  

 
	
  

 	
           “Senior Unsecured Note
 Indenture” means that certain Indenture to be entered into by the Parent
 and certain of its Subsidiaries in connection with the issuance of the Senior
 Unsecured Notes, together with all instruments and other agreements entered
 into by the Parent or such Subsidiaries in connection therewith.

 
	
  

 	
  

 
	
  

 	
           “Senior Unsecured Notes”
 means the Senior Unsecured Notes of the Parent in the aggregate principal
 amount of up to $500,000,000 issued pursuant to the Senior Unsecured Note
 Indenture on or prior to June 30, 2011.

 

                    (b)
The definition of “Commitment Termination Date” is hereby amended by deleting
the date “March 31, 2013” and substituting in lieu thereof the phrase “the date
that is the six-month anniversary of the date of the issuance of the Senior
Unsecured Notes”

                    (c)
The definition of “Consolidated Fixed Charge Coverage Ratio” is hereby amended
by adding the following proviso at the end of the first sentence thereof:

	
  

 	
  

 
	
  

 	
           “; provided that in
 no event shall any cash interest expense or Indebtedness in respect of the
 Senior Unsecured Notes be included in the calculation of the Consolidated
 Fixed Charge Coverage Ratio (including, without limitation, for purposes of
 determining Consolidated 

 

	
  

 	
  

 
	
  

 	
 EBITDA) for any purpose
 required by this Agreement to the extent that any cash interest
 expense of Parent in respect of the Senior Unsecured Notes (or the
 Indebtedness of Parent in respect of the Senior Unsecured Notes) would
 otherwise be included in any such calculation as a result of the Borrower or
 the Guarantor’s Guarantee thereof (including, without limitation, as a result
 of any payments made by the Borrower to the Parent for that purpose))”.

 
	
  

 	
  

 
	
                     (d)
 The definition of “Consolidated Leverage Ratio” is hereby amended by adding
 the following proviso at the end of the first sentence thereof:

 
	
  

 	
  

 
	
  

 	
           “; provided that in
 no event shall any cash interest expense or Indebtedness in respect of the
 Senior Unsecured Notes be included in the calculation of the Consolidated
 Leverage Ratio (including, without limitation, for purposes of determining
 Consolidated EBITDA or Consolidated Funded Debt) for any purpose required by
 this Agreement to the extent that any cash interest expense of Parent
 in respect of the Senior Unsecured Notes (or the Indebtedness of Parent in
 respect of the Senior Unsecured Notes) would otherwise be included in any such
 calculation as a result of the Borrower or the Guarantor’s Guarantee thereof
 (including, without limitation, as a result of any payments made by the
 Borrower to the Parent for that purpose)”.

 

                    (e)
The definition of “Consolidated Net Worth” is hereby amended by adding the
following proviso at the end of the first sentence thereof:

                    “;
provided that in no event shall obligations of the Borrower and the
Guarantors in respect of their Guarantees of the Senior Unsecured Notes be
included in the determination of Consolidated Net Worth for any purpose
required by this Agreement”.

                    3. Amendment
to Section 7.01(a) (Indebtedness). Section 7.01(a) of the Credit Agreement
is hereby amended by (a) deleting the “and” at the end of clause (xv) thereof,
(b) renumbering clause (xvi) thereof as clause (xvii) thereof, and (c)
inserting the following new clause (xvi):

	
  

 	
  

 
	
  

 	
           “(xvi) (I) prior to a
 Permitted Change of Control Transaction, unsecured Indebtedness of Parent to
 Borrower permitted by Section 7.06(s)(ii), and (II) prior to a Permitted
 Change of Control Transaction, Indebtedness of Borrower or any of its
 Subsidiaries to Parent, provided that such Indebtedness shall
 be subordinated to the Obligations on terms and conditions reasonably
 satisfactory to the Administrative Agent.”

 
	
  

 	
  

 
	
                     4. Amendment
 to Section 7.01(b) (Guarantees). Section 7.01(b) of the Credit Agreement
 is hereby amended by (a) deleting the “and” at the end of clause (v) thereof,
 (b) deleting the “.” at the end of clause (vi) thereof and substituting in
 lieu thereof “; and” and (c) inserting the following new clause (vii):

 
	
  

 
	
  

 	
           “(vii) obligations of the
 Borrower and the Guarantors in respect of their Guarantees of the Senior
 Unsecured Notes.”

 
	
  

 	
  

 
	
                     5. Amendment
 to Section 7.06 (Investments and Acquisitions). Section 7.06 of the
 Credit Agreement is hereby amended by (a) deleting the “and” at the end of
 clause (r) thereof, (b) renumbering clause (s) thereof as clause (t) thereof,
 and (c) inserting the following new clause (s):

 
	
  

 
	
  

 	
           “(s) (i) Investments in
 Borrower and its Subsidiaries by Parent consisting of unsecured Indebtedness
 permitted by Section 7.01(xvi)(II), and (ii) prior to a Permitted Change of
 Control Transaction, Investments by Borrower or its Subsidiaries in Parent
 consisting of unsecured Indebtedness, so long as after giving effect thereto
 on a pro-forma basis, (x) the 

 

2

	
  

 	
  

 
	
  

 	
 Consolidated Leverage
 Ratio does not exceed 2.25 to 1.0, and (y) no Default shall have
 occurred and be continuing; and”.

 
	
  

 	
  

 
	
                     6. Amendment
 to Section 7.07(f) (Restricted Payments). Section 7.07(f) of the Credit
 Agreement is hereby amended by deleting it in its entirety and replacing it
 with the following clause:

 
	
  

 	
  

 
	
  

 	
           “(f) prior to a Permitted
 Change of Control Transaction, the Borrower may declare and pay to Holdings
 dividends (for distribution to the Parent, if applicable), not otherwise
 permitted hereunder so long as, after giving effect thereto on a pro forma
 basis, (i) the Consolidated Leverage Ratio does not exceed 2.25 to 1.0 and
 (ii) no Default shall have occurred and be continuing.”

 
	
  

 	
  

 
	
                     7. Amendment
 to Section 7.08 (Transactions with Affiliates). Section 7.08 of the
 Credit Agreement is hereby amended by (a) deleting the “and” at the end of
 clause (e) thereof, (b) deleting the “.” at the end of clause (f) thereof and
 substituting in lieu thereof “; and” and (c) inserting the following new
 clauses (g) and (h):

 
	
  

 	
  

 
	
  

 	
           “(g) the Guarantees of the
 Borrower and the Guarantors of the Senior Unsecured Notes; and

 
	
  

 	
  

 
	
  

 	
           (h) the intercompany Indebtedness permitted by Section
 7.01(xvi).”

 
	
  

 	
  

 
	
                     8. Amendment
 to Section 7.09(a) (Restrictive Agreements). Section 7.09(a) of the
 Credit Agreement is hereby amended by inserting the following clause at the
 end thereof:

 
	
  

 	
  

 
	
  

 	
           “or by the Senior Unsecured Note Indenture”.

 
	
  

 	
  

 
	
                     9. Effectiveness.
 This Amendment shall become effective on the date (the “First Amendment
 Effective Date”) on which the following conditions precedent shall have
 been satisfied: 

 
	
  

 	
  

 
	
  

 	
                (a) Amendment. The
 Administrative Agent shall have received this Amendment, duly executed and
 delivered by the Borrower, the Required Lenders and the Administrative Agent.
 

 
	
  

 	
  

 
	
  

 	
                (b) Senior Unsecured
 Notes. The Senior Unsecured Notes shall have been issued on or prior to
 June 30, 2011.

 
	
  

 	
  

 
	
  

 	
                (c) Acknowledgement and
 Consent. The Administrative Agent shall have received an Acknowledgement
 and Consent in the form attached hereto as Annex A, executed and delivered by
 each Loan Party.

 
	
  

 	
  

 
	
  

 	
                (d) Representations and
 Warranties. Each of the representations and warranties made by any Loan
 Party in the Loan Documents shall be true and correct in all material
 respects on and as of the First Amendment Effective Date as if made on and as
 of such date (or, if any such representation or warranty is expressly stated
 to have been made as of a specific date, as of such specific date). 

 
	
  

 	
  

 
	
  

 	
                (e) No Default.
 After giving effect to this Amendment (as in effect as of the First Amendment
 Effective Date), no Default or Event of Default shall have occurred and be
 continuing.

 

3

                    10. Continuing
Effect of the Credit Agreement. This Amendment shall not constitute an
amendment of any other provision of the Credit Agreement not expressly referred
to herein and shall not be construed as a waiver or consent to any further or
future action on the part of the Borrower that would require a waiver or
consent of the Lenders or the Administrative Agent. Except as expressly amended
hereby, the provisions of the Credit Agreement are and shall remain in full
force and effect.

                    11. Counterparts.
This Amendment may be executed in counterparts (and by different parties hereto
on different counterparts), each of which shall constitute an original, but all
of which when taken together shall constitute a single instrument. Delivery of
an executed counterpart of a signature page of this Amendment by telecopy or
electronic transmission shall be effective as delivery of a manually executed
counterpart of this Amendment.

                    12. GOVERNING
LAW. THIS AMENDMENT SHALL BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. 

                    13. Expenses.
The Borrower agrees to pay or reimburse the Administrative Agent for all of its
out-of-pocket costs and expenses incurred in connection with the preparation,
negotiation and execution of this Amendment, including, without limitation, the
reasonable fees and disbursements of counsel to the Administrative Agent. 

[rest of page intentionally left blank]

4

                    IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed and delivered by their proper and duly authorized officers as of the
day and year first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 TELEPHONICS CORPORATION

 
	
  

 	
  

 
	
  

 	
 By

 	
    /s/
 Joseph J. Battaglia

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Joseph J. Battaglia

 	
  

 
	
  

 	
  

 	
   Title:
 President 

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 JPMORGAN CHASE BANK, N.A.,
 individually, as Administrative Agent, an Issuing Bank, Swingline Lender and
 as a Lender

 
	
  

 	
  

 
	
  

 	
 By: 

 	
    /s/
 Michelle Cipriani

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Michelle Cipriani

 	
  

 
	
  

 	
  

 	
 Title: Vice
 President

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Wells Fargo Bank, N.A., as
 a Lender

 
	
  

 	
  

 
	
  

 	
 By: 

 	
   /s/ Edward P.
 Nallan, Jr.

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Edward P. Nallan,
 Jr.

 	
  

 
	
  

 	
  

 	
 Title: Senior Vice
 President

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 HSBC Bank USA, NA, as a
 Lender

 
	
  

 	
  

 
	
  

 	
 By: 

 	
   /s/ Michael
 Kid

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Michael Kid

 	
  

 
	
  

 	
  

 	
 Title: Assistant Vice
 President

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Manufacturers and Traders
 Trust Company, as a Lender

 
	
  

 	
  

 
	
  

 	
 By: 

 	
   /s/ William S.
 Terraglio

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: William S. Terraglio

 	
  

 
	
  

 	
  

 	
 Title: Vice President

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Bank of America, N.A., as
 a Lender

 
	
  

 	
  

 
	
  

 	
 By: 

 	
   /s/ Steven J.
 Melicharek

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Steven J. Melicharek

 	
  

 
	
  

 	
  

 	
 Title: Senior Vice
 President

 	
  

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 US Bank, N.A., as a Lender

 
	
  

 	
  

 
	
  

 	
 By: 

 	
   /s/ Patrick
 McGraw

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
  

 	
 Name: Patrick McGraw

 	
  

 
	
  

 	
  

 	
 Title: Vice President

 	
  

 
	
  

 	
  

 	
          U.S.
 Bank, N.A.

 	
  

 

ANNEX A

ACKNOWLEDGEMENT AND CONSENT

          Each
of the parties hereto hereby acknowledges and consents to the First Amendment,
dated as of March 7, 2011 (the “Amendment”; capitalized terms used
herein, but not defined, shall have the meanings set forth in the Amendment),
to the Credit Agreement, dated as of March 31, 2008 (as amended, supplemented
or modified from time to time, the “Credit Agreement”), among GRITEL
HOLDING CO., INC., a Delaware corporation, TELEPHONICS CORPORATION, a Delaware
corporation, the several banks and other financial institutions or entities
from time to time parties thereto and JPMORGAN CHASE BANK, N.A., as administrative
agent, and agrees with respect to each Loan Document to which it is a party:

          (a) all
of its obligations, liabilities and indebtedness under such Loan Document shall
remain in full force and effect on a continuous basis after giving effect to
the Amendment and its guarantee, if any, of the obligations, liabilities and
indebtedness of the Loan Parties under the Credit Agreement shall extend to and
cover Loans made pursuant to the increased Aggregate Commitment and interest
thereon and fees and expenses and other obligations in respect thereof and in
respect of commitments related thereto; and

          (b) all
of the Liens and security interests created and arising under such Loan
Document remain in full force and effect on a continuous basis, and the
perfected status and priority of each such Lien and security interest continue
in full force and effect on a continuous basis, unimpaired, uninterrupted and
undischarged, after giving effect to the Amendment, as collateral security for
its obligations, liabilities and indebtedness under the Credit Agreement and
under its guarantees, if any, in the Loan Documents.

[Remainder of page intentionally left blank.]

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 TELEPHONICS CORPORATION

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
   /s/ Joseph J.
 Battaglia

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
      Name:
 Joseph J. Battaglia

 	
  

 
	
  

 	
      Title:
 President 

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 GRITEL HOLDINGS CO., INC.

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
   /s/ Ronald J.
 Kramer

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
      Name:
 Ronald J. Kramer

 	
  

 
	
  

 	
      Title:
 President

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