Document:

Exhibit 4.1

 

SUPPLEMENTAL INDENTURE

 

Supplemental Indenture (this “Supplemental Indenture”), dated as of April 1, 2011, among the parties identified in the signature page of this Supplemental Indenture as a Guaranteeing Subsidiary (each a “Guaranteeing Subsidiary”) of the Company (as defined herein), and Wilmington Trust FSB, as trustee under the Indenture referred to below (the “Trustee”).

 

W I T N E S S E T H

 

WHEREAS, Kratos Defense & Security Solutions, Inc., a Delaware corporation (the “Company”) has heretofore executed and delivered to the Trustee an indenture (the “Indenture”), dated as of May 19, 2010 providing for the issuance of 10% Senior Secured Notes due 2017 (the “Notes”);

 

WHEREAS, Section 4.16 of the Indenture provides that under certain circumstances each Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture and a Guarantee pursuant to which any newly-acquired or created Guarantor shall unconditionally guarantee all of the Company’s obligations under the Notes and the Indenture on the terms and conditions set forth therein and herein and in such Guarantee; and

 

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and delivery this Supplemental Indenture.

 

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, each Guaranteeing Subsidiary and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

 

1.                                       Capitalized Terms. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

 

2.                                       Joinder to Indenture. Each of the Guaranteeing Subsidiaries hereby agree to become bound by the terms, conditions and other provisions of the Indenture with all attendant rights, duties and obligations stated therein, with the same force and effect as if originally named as a Guarantor therein and as if such Guaranteeing Subsidiary executed the Indenture on the date thereof.

 

3.                                       Agreement to Guarantee. Each Guarantor hereby fully, irrevocably and unconditionally, jointly and severally, unconditionally and irrevocably guarantees (such guarantee, as amended or supplemented from time to time, to be referred to herein as the “Guarantee”), to each of the Holders, the Trustee and the Collateral Agent and their respective successors and assigns that (i) the principal of, premium, if any and interest and Additional Interest, if any, on the Notes shall be promptly paid in full when due, subject to any applicable grace period, whether upon redemption pursuant to the terms of the Notes, by acceleration or otherwise, and interest on the overdue principal (including interest accruing at the then applicable rate provided in the

 

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Indenture Documents after the occurrence of any Event of Default set forth in Section 6.01(6) or 6.01(7) of the Indenture, whether or not a claim for post-filing or post-petition interest is allowed under applicable law following the institution of a proceeding under bankruptcy, insolvency or similar laws), if any, and interest on any interest and Additional Interest, if any, to the extent lawful, of the Notes and all other obligations of the Company to the Holders, the Trustee and the Collateral Agent hereunder, thereunder or under any Collateral Agreement shall be promptly paid in full or performed, all in accordance with the terms hereof, thereof and of the Collateral Agreements; and (ii) in case of any extension of time of payment or renewal of any of the Notes or of any such other obligations, the same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, subject to any applicable grace period, whether at stated maturity, by acceleration or otherwise, subject, however, in the case of clauses (i) and (ii) above, to the limitations set forth in Section 10.03 of the Indenture.

 

The obligations of each Guaranteeing Subsidiary to the Holders and to the Trustee pursuant to this Supplemental Indenture and the Indenture are expressly set forth in Article Ten of the Indenture and reference is hereby made to such Indenture for the precise terms of the Guarantee. No past, present or future director, officer, employee, incorporator, agent, stockholder or Affiliate of the Company or a Guarantor, as such, shall have any liability for any obligations of the Company or the Guarantors under the Notes, the Guarantees, the Indenture or the Collateral Agreements or for any claim based on, in respect of, such obligations or their creation. The Guarantee executed and delivered hereby is a continuing Guarantee and shall remain in full force and effect and shall be binding upon each Guarantor and its successors and assigns until full and final payment of all of the Company’s obligations under the Notes and Indenture or until released or legally defeased in accordance with the Indenture and shall inure to the benefit of the successors and assigns of the Trustee and the Holders, and, in the event of any transfer or assignment of rights by any Holder or the Trustee, the rights and privileges herein conferred upon that party shall automatically extend to and be vested in such transferee or assignee, all subject to the terms and conditions hereof. This is a Guarantee of payment and performance and not of collectibility.

 

The obligations of each Guaranteeing Subsidiary under its Subsidiary Guarantee shall be limited to the extent necessary to insure that it does not constitute a fraudulent conveyance under applicable law.

 

THE TERMS OF ARTICLE TEN OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE.

 

4.                                       GOVERNING LAW. THIS SUPPLEMENTAL INDENTURE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE.

 

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5.                                       Counterparts. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

 

6.                                       Effect of Headings. The Section headings herein are for convenience only and shall not affect the construction hereof.

 

[signature page follows]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of the date written below.

 

 

	
 
    	
GUARANTEEING SUBSIDIARIES:
    
	
 
    	
ACQUISITION CO. LANZA PARENT
    
	
 
    	
LANZA ACQUISITION CO.
    
	
 
    	
HERLEY INDUSTRIES, INC.
    
	
 
    	
GENERAL MICROWAVE CORPORATION
    
	
 
    	
GENERAL MICROWAVE ISRAEL
    
	
 
    	
CORPORATION
    
	
 
    	
HERLEY-CTI, INC.
    
	
 
    	
MSI ACQUISITION CORP.
    
	
 
    	
MICRO SYSTEMS, INC.
    
	
 
    	
STAPOR RESEARCH, INC.
    
	
 
    	
HERLEY-RSS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
Name:   
    	
Deanna   H. Lund
    
	
 
    	
Title:
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
THE TRUSTEE:
    
	
 
    	
Wilmington   Trust FSB, as Trustee
    
	
 
    	
By:   
    	
/s/   Jane Schweiger
    
	
 
    	
Name:   
    	
Jane   Schweiger
    
	
 
    	
Title:
    	
Vice   President
    

 

4Exhibit 4.2

 

KRATOS DEFENSE & SECURITY SOLUTIONS, INC.,

 

as Successor Issuer,

 

HERLEY INDUSTRIES, INC.,

 

as Guarantor

 

and

 

WILMINGTON TRUST FSB,

 

as Trustee and Collateral Agent

 

 

FIRST SUPPLEMENTAL INDENTURE

 

Dated as of April 4, 2011

 

Supplementing the Indenture, Dated as of March 25, 2011

 

 

Providing for the

 

Amendment to the Terms of 10% Senior Secured Notes due 2017

 

 

THIS FIRST SUPPLEMENTAL INDENTURE, dated as of  April 4, 2011 (the “First Supplemental Indenture”), is by and among KRATOS DEFENSE & SECURITY SOLUTIONS, INC., a corporation duly incorporated and existing under the laws of the State of Delaware (“Kratos”), HERLEY INDUSTRIES, INC. (successor by merger with Lanza Acquisition Co.), a corporation duly incorporated and existing under the laws of the State of Delaware, as guarantor (“Herley”), and WILMINGTON TRUST FSB, as trustee (the “Trustee”) and collateral agent (the “Collateral Agent”).

 

Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to thereto in the Indenture (as defined below).

 

RECITALS

 

WHEREAS, Acquisition Co. Lanza Parent, a Delaware corporation and wholly-owned subsidiary of Kratos (“Lanza Parent”), as issuer, and Lanza Acquisition Co., a Delaware corporation and wholly-owned subsidiary of Kratos (“Lanza Acquisition Co.”), as a guarantor, has heretofore executed and delivered to the Trustee an Indenture (the “Indenture” and as amended, supplemented, waived or otherwise modified, the “Indenture”), dated as of March 25, 2011, providing for the issuance of Lanza Parent’s 10% Senior Secured Notes due 2017 (the “Notes”);

 

WHEREAS, Lanza Acquisition Co. has acquired (the “Acquisition”) all of the outstanding shares of the common stock, par value $0.10 per share, of Herley;

 

WHEREAS, in connection with the Acquisition, Lanza Acquisition Co. merged with and into Herley, with Herley remaining as the surviving entity;

 

WHEREAS, in connection with the Acquisition, Lanza Parent issued the Notes pursuant to the Indenture, whereby the net proceeds from issuance and sale of the Notes were used to finance the Acquisition, to pay fees and expenses related to the offering of the Notes and for general corporate purposes;

 

WHEREAS, the Notes are (i) guaranteed by Herley and (ii) secured by substantially all the assets of Lanza Parent and Herley (the “Collateral”);

 

WHEREAS, on the date hereof, Lanza Parent was merged with and into Kratos (the “Roll-Up Merger”) and all assets and liabilities of Lanza Parent became assets and liabilities of Kratos;

 

WHEREAS, in connection with the Roll-up Merger and pursuant to this First Supplemental Indenture, Kratos expressly assumes hereby all the Obligations of Lanza Parent under the Notes, the Indenture and the Collateral Agreements and Kratos hereby agrees to replace Lanza Parent as the issuer of the Notes under the Indenture and as pledgor under the Collateral Agreements;

 

WHEREAS, after execution and delivery of this First Supplemental Indenture, Kratos, as the replacement issuer of Notes under the Indenture, will consummate the Stage II Notes Exchange Redemption as contemplated in Section 3.01 of the Indenture;

 

WHEREAS, Sections 5.01 and 9.01 of the Indenture provide that Kratos, when authorized by resolutions of the board of directors, and the Trustee or Collateral Agent, as applicable, and by entering into an indenture supplemental to the Indenture for the purpose of amending or supplementing the Indenture, may expressly assume (i) the due and punctual payment of the principal of, and premium, if any, interest and Additional Interest, if any, on all the Notes and the performance of every covenant of the Notes and the Indenture on the part of the Company to be performed or observed thereunder (the “Indenture Obligations”), and (ii) all obligations of the Company under the Collateral Agreements, and in connection therewith shall cause such instruments to be filed and recorded in such jurisdictions and take such other actions as may be required by applicable law to perfect or continue the perfection of the Lien created under the Collateral Agreements on the Collateral owned by or transferred to the surviving entity (the “Collateral Obligations” and, together with the Indenture Obligations, the “Obligations”);

 

WHEREAS, pursuant to a meeting of the board of directors of Kratos (the “Board”) on March 10, 2011, the Board authorized Kratos, promptly following the consummation of the Acquisition and the Roll-Up Merger, to assume the Obligations;

 

 

WHEREAS, Kratos and Herley have requested the Trustee and Collateral Agent to join with them in entering into this First Supplemental Indenture to permit the assumption of the Obligations, as permitted by Sections 5.01 and 9.01 of the Indenture;

 

WHEREAS, (i) Kratos and Herley have been authorized by Board Resolutions to enter into an indenture supplemental to the Indenture, (ii) Kratos has delivered to the Trustee simultaneously with the execution and delivery of this First Supplemental Indenture an Officers’ Certificate and an Opinion of Counsel relating to this First Supplemental Indenture as contemplated by Sections 5.01 and 9.01 of the Indenture and (iii) Kratos has satisfied all other conditions required under Articles Five and Nine of the Indenture to enable Kratos and the Trustee to enter into this First Supplemental Indenture.

 

NOW, THEREFORE, in consideration of the above premises, each party hereby agrees, for the benefit of the others and for the equal and ratable benefit of the Holders of the Notes, as follows:

 

AGREEMENTS

 

ARTICLE I

 

ASSIGNMENT AND ASSUMPTION; EFFECTIVENESS OF FIRST SUPPLEMENTAL INDENTURE

 

Section 1.1              Assignment and Assumption.  Kratos irrevocably assumes from Lanza Parent the Obligations in accordance to Sections 5.01 and 9.01 of the Indenture. Kratos hereby agrees to replace Lanza Parent as the issuer of the Notes under the Indenture.

 

Section 1.2              Effectiveness of this First Supplemental Indenture.  This First Supplemental Indenture is entered into pursuant to and consistent with Sections 5.01 and 9.01 of the Indenture.  Upon the execution of this First Supplemental Indenture by Kratos, Herley, the Trustee and the Collateral Agent, the Indenture shall be supplemented in accordance herewith, and this First Supplemental Indenture shall form a part of the Indenture for all purposes and each Holder shall be bound thereby.

 

ARTICLE II

 

MISCELLANEOUS PROVISIONS

 

Section 2.1              Confirmation of the Indenture.  The Indenture, as heretofore supplemented by this First Supplemental Indenture, as well as the Notes, are in all respects ratified and confirmed and all the terms shall remain in full force and effect. This First Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder of Notes, heretofore or hereafter authenticated and delivered under the Indenture shall be bound hereby and all terms and conditions of each shall be read together as though they constitute a single instrument, except that in the case of conflict the provisions of this First Supplemental Indenture shall control.

 

Section 2.2              Governing Law.  This First Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements made or instruments entered into and, in each case, performed in said state.

 

Section 2.3              Successors.  All agreements of Kratos and Herley in this First Supplemental Indenture shall bind their respective successors.  All agreements of the Trustee and Collateral Agent in this First Supplemental Indenture shall bind its successors.

 

Section 2.4              Duplicate Originals.  All parties may sign any number of copies of this First Supplemental Indenture.  Each signed copy shall be an original, but all of them together shall represent the same agreement.  The exchange of copies of this First Supplemental Indenture and of signature pages by facsimile or pdf shall constitute effective execution and delivery of this First Supplemental Indenture.  Signatures of the parties hereto transmitted by facsimile or pdf shall be deemed to be their original signatures for all purposes.

 

 

Section 2.5              Severability.  In case any one or more of the provisions in this First Supplemental Indenture or in the Notes shall be held invalid, illegal or unenforceable, in any respect for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions shall not in any way be affected or impaired thereby, it being intended that all of the provisions hereof shall be enforceable to the full extent permitted by law.

 

Section 2.6              Trustee Not Responsible for Recitals.  The recitals contained herein shall be taken as the statements of the Company and Kratos, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this First Supplemental Indenture.

 

Section 2.7              Effect of Headings.  The Section headings herein are for convenience only and shall not affect the construction thereof.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this First Supplemental Indenture to be duly executed as of the day and year written above.

 

 

	
 
    	
KRATOS   DEFENSE SYSTEMS & SOLUTIONS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
Title:
    	
Executive   Vice President & Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HERLEY   INDUSTRIES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Deanna H. Lund
    
	
 
    	
Name:
    	
Deanna   H. Lund
    
	
 
    	
Title:
    	
Executive   Vice President & Chief Financial Officer
    

 

 

	
 
    	
WILMINGTON   TRUST FSB, as Trustee and Collateral Agent
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jane Schweiger
    
	
 
    	
Name:
    	
Jane Schweiger
    
	
 
    	
Title:
    	
Vice   President

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