Document:

EX-10.1

 Exhibit 10.1 

[Certain information in this exhibit has been omitted pursuant to Item 601(b)(10) of Regulation S-K.
Such information is not material and would likely cause competitive harm to the registrant if publicly disclosed.] 
 SEVERANCE AND
CHANGE OF CONTROL AGREEMENT 
 THIS SEVERANCE AND CHANGE OF CONTROL AGREEMENT (the “Agreement”) by and between Ingevity
Corporation, a Delaware corporation (together with its Affiliated Companies, as hereafter defined, being the “Company”), and John C. Fortson (the “Executive”) is dated as of the date set forth under the Company’s signature.

 RECITALS 

WHEREAS, the Board of Directors of the Company (the “Board”) has determined that it is in the best interests of the Company and its
shareholders to assure that the Company will have the continued dedication and objectivity of the Executive, to provide the Executive with an incentive to continue his or her employment, and to motivate the Executive to achieve and exceed
performance goals. The Board also believes it is imperative to diminish the inevitable distraction of the Executive by virtue of the personal uncertainties and risks created by certain involuntary terminations of employment absent Cause (as defined
below), to encourage the Executive’s full attention and dedication to the Company currently, and to provide the Executive with compensation and benefits arrangements that are competitive with those of other corporations. In addition, the
success of the Company’s business depends in part on the preservation of its confidential information, trade secrets and goodwill in the markets in which it competes. The Board and Executive have agreed to certain reasonable restrictions on
Executive’s post-employment activities to protect these legitimate business interests. Therefore, in order to accomplish these objectives, the Board caused the Company to enter into this Agreement. 

NOW, THEREFORE, IT IS HEREBY AGREED as follows: 
  

	 	1.	 Change of Control. For the purpose of this Agreement, a “Change of Control” shall mean:

  

	 	(a)	 An acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of
the Exchange Act) (a “Person”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 30% or more of either (i) the then-outstanding shares of Common
Stock (the “Outstanding Company Common Stock”) or (ii) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting
Securities”); excluding, however, the following: (A) any acquisition directly from the Company, other than an acquisition by virtue of the exercise of a conversion privilege unless the security being so converted itself was acquired
directly from the Company, (B) any repurchase by the Company, (C) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any entity controlled by the Company, or (D) any acquisition
pursuant to a transaction that complies with clauses (i), (ii) and (iii) of subsection (c) of this Section 1(a); or 

  
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	 	(b)	 Individuals who, as of the date hereof, constitute the Board (such Board shall be hereinafter referred to as
the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that, for purposes of this Section 1(b), any individual who becomes a member of the Board subsequent to the date hereof,
whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least a majority of those individuals who are members of the Board and who were also members of the Incumbent Board (or deemed to be such
pursuant to this proviso) shall be considered as though such individual were a member of the Incumbent Board; provided, further, that any such individual whose initial assumption of office occurs as a result of either an actual or
threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board shall not be so considered as a member of the
Incumbent Board; or 

  

	 	(c)	 The consummation of a reorganization, merger or consolidation or sale or other disposition of all or
substantially all of the assets of the Company (a “Business Combination”); excluding, however, such a Business Combination pursuant to which (i) all or substantially all of the individuals and entities who are the beneficial owners,
respectively, of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination will beneficially own, directly or indirectly, more than 50% of, respectively, the outstanding shares of
common stock, and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without
limitation, a corporation that as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination, of the Outstanding Company Common Stock and Outstanding Company Voting Securities, as the case may be, (ii) no Person (other than the Company, any employee benefit plan (or related trust) of the
Company or such corporation resulting from such Business Combination) will beneficially own, directly or indirectly, 30% or more of, respectively, the outstanding shares of common stock of the corporation resulting from such Business Combination or
the combined voting power of the outstanding voting securities of such corporation entitled to vote generally in the election of directors except to the extent that such ownership derives from ownership of a 30% or more interest in the Outstanding
Company Common Stock and/or Outstanding Company Voting Securities that existed prior to the Business Combination, and (iii) individuals who were members of the Incumbent Board will constitute at least a majority of the members of the board of
directors of the corporation resulting from such Business Combination; or 

  
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	 	(d)	 The approval by stockholders of a complete liquidation or dissolution of the Company. 

 

	 	2.	 Certain Other Definitions. 

 

	 	(a)	 “Affiliated Companies” or “Affiliated Company” shall include any company controlled by,
controlling or under common control with the Company. 

  

	 	(b)	 The “Change of Control Period” means the period commencing on the Effective Date and ending on the
second anniversary of such date. The Change of Control Period shall terminate upon the termination of the Executive’s employment for any reason. 

  

	 	(c)	 “Competitive Product or Service” means any product or service that is substantially the same as or
similar to any product or service sold or provided by Company during the “Restricted Period” (as defined below) and/or any product or service meant to accomplish the same or a similar purpose as, and/or to serve as a substitute for,
products or services sold or provided by Company during the Term. 

  

	 	(d)	 “Company Competitor” means any business providing a Competitive Product or Service, and for the
avoidance of doubt, includes the Named Company Competitors set forth on Exhibit B to this Agreement. 

  

	 	(e)	 “Confidential Information” means information relating to the Company or any of the Affiliated
Companies, which has value to the Company or its Affiliated Companies and is not generally available to the public. This includes, but is not limited to, Customer lists, Company know-how, designs, formulae,
processes, devices, machines, business contracts, financial data, inventions, research or development projects, plans for future development, materials of a business nature including marketing information, strategies and concepts, and pricing
strategies. 

  

	 	(f)	 “Customer” means any person or entity that is a customer of Company as of the Termination Date (i.e,
has an ongoing business relationship as of that date, whether or not there are then current outstanding commitments). Customer shall also include any prospective customer whose business you have actively been seeking on behalf of the Company within
the six months prior to your Termination Date. 

  

	 	(g)	 The “Effective Date” shall mean the first date during the Employment Period on which a Change of
Control occurs. 

  

	 	(h)	 The “Employment Period” shall mean the period commencing on the date hereof and ending on the third
anniversary of the date hereof, as subsequently extended as described below. The Employment Period shall be automatically extended for successive one-year periods unless the Company notifies the Executive in
writing, at least six months prior to the end of the then current term that the Employment Period will not be extended. The Employment Period shall further be automatically extended immediately prior to any Change in Control such that the Employment
Period (and this Agreement) shall be in effect throughout the entire Change in Control Period. 

  
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	 	(i)	 “Indirect Customer” means any person or entity to whom Ingevity’s direct Customer supplies
product that incorporates the Company’s products. In the case of the Company’s automotive carbon business, Indirect Customer includes the automobile manufacturers and any business that supplies product to an automobile manufacturer that
includes the Company’s products. 

  

	 	(j)	 “Named Company Competitors” means those companies identified as such on Exhibit B.

  

	 	(k)	 “Peer Executives” shall mean, at any given time, the other persons employed by the Company or any of
the Affiliated Companies who were, immediately before the Effective Date, party to agreements with the Company substantially in the form of this Agreement. 

  

	 	(l)	 “Separation from Service” shall mean a separation from service as defined in Treasury Regulation Section 1.409A-1(h). 

  

	 	(m)	 “Supplier” means any supplier or vendor of any product or service to Company that Company, in turn,
provides to or procures for any Customer. 

  

	 	(n)	 “Relevant Time” shall mean immediately before the Effective Date. 

 

	 	(o)	 “Restricted Period” means the Employment Period, including any extension or renewal thereof, plus a
period of twelve (12) months following termination of Executive’s employment with Company for any reason. In the event Executive is found by a Court of competent jurisdiction to have violated any of the provisions of Sections 10-14 of this Agreement, the Restricted Period shall be extended by any such period of non-compliance. 

 

	 	(p)	 “Territory” means the territory set forth in Exhibit C to this Agreement. 

 

	 	3.	 Employment Term: The Company herby agrees to continue the Executive in its employ, subject to the terms
and conditions of this Agreement, for the Employment Period. 

  

	 	4.	 Terms of Employment. 

 

	 	(a)	 Position and Duties. 

 

	 	i.	 During the Change of Control Period, there shall be no material reduction in any of the Executive’s
position, authority, duties, responsibilities or salary grade as compared to those held, exercised and assigned to the Executive at the Relevant Time. Notwithstanding the foregoing, a change in title by itself shall not be a violation of this
Section 4(a)(i); provided that the Executive continues to have responsibilities and authority that are, in the aggregate and in all material respects, comparable to those held by the Executive at the Relevant Time. 

  
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	 	ii.	 During the Change of Control Period, the Executive’s services shall be performed at the location where the
Executive was employed immediately preceding the Effective Date, or at any other location that does not result in the Executive’s commuting distance from the Executive’s residence being increased by more than 30 miles; provided, that if
the Executive voluntarily changes his or her residence after the Effective Date, then a new work location shall not be considered to have increased the Executive’s commuting distance by more than 30 miles unless such an increase both
(1) occurs in relation to the Executive’s new residence; and (2) would have occurred even if the Executive had not changed his or her residence. 

 

	 	iii.	 During the Change of Control Period, and excluding any periods of vacation and sick leave to which the
Executive is entitled, the Executive agrees to devote reasonable attention and time during normal business hours to the business and affairs of the Company and, to the extent necessary to discharge the responsibilities assigned to the Executive
hereunder, to use the Executive’s reasonable good faith efforts to perform such responsibilities consistent with his or her past practice. During the Change of Control or Employment Periods it shall not be a violation of this Agreement for the
Executive to (A) serve on corporate, civic or charitable boards or committees; (B) deliver lectures, fulfill speaking engagements or teach at educational institutions; or (C) manage personal investments, so long as such activities do
not significantly interfere with the performance of the Executive’s responsibilities as an employee of the Company in accordance with this Agreement. It is expressly understood and agreed that to the extent that any such other activities have
been conducted by the Executive prior to the Effective Date, the continued conduct of such activities (or the conduct of activities similar in nature and scope thereto) subsequent to the Effective Date shall not thereafter be deemed to interfere
with the performance of the Executive’s responsibilities to the Company. 

  

	 	(b)	 Compensation. 

 

	 	i.	 Base Salary. During the Change of Control Period, the Executive shall receive an annual base salary
(“Annual Base Salary”) which shall be not less than the Executive’s annual base salary from the Company and the Affiliated Companies as in effect immediately before the Effective Date. Any increase in Annual Base Salary during the
Change of Control Period shall not serve to limit or reduce any other obligation to the Executive under this Agreement, and the Annual Base Salary shall not be reduced during the Change of Control Period. 

 

	 	ii.	 Incentive Compensation Opportunities. In addition to the Annual Base Salary, the Executive shall be
granted, during the Change of Control Period, cash-based and equity-based awards representing the opportunity to earn incentive compensation on terms and conditions no less favorable to the Executive, in the aggregate, than those provided generally
at any time after the Effective Date to the Peer Executives or, if more favorable to the Executive, than those provided by the Company and the Affiliated Companies for the Executive at the Relevant 

  
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Time. In determining whether the Executive’s incentive compensation opportunities during the Change of Control Period meet the requirements of the preceding sentence, there shall be taken
into account all relevant terms and conditions, including, without limitation and to the extent applicable, the potential value of such awards at minimum, target and maximum performance levels, and the difficulty of achieving the applicable
performance goals. 

  

	 	iii.	 Savings Plans. During the Change of Control Period, the Executive shall be entitled to participate in
all savings plans, practices, policies and programs applicable generally to the Peer Executives, on comparable terms and conditions, but in no event shall such plans, practices, policies and programs provide the Executive with savings opportunities,
in each case, less favorable, in the aggregate, to the Executive than those provided by the Company and the Affiliated Companies to the Executive at the Relevant Time. 

 

	 	iv.	 Welfare Benefit Plans. During the Change of Control Period, the Executive and/or the Executive’s
family, as the case maybe, shall be eligible for participation in and shall receive all benefits under welfare benefit plans, practices, policies and programs provided by the Company and the Affiliated Companies (including, without limitation,
medical, prescription, dental, disability, employee life, group life, accidental death and travel accident insurance plans and programs) (collectively, “Welfare Benefits”) to the extent applicable generally to the Peer Executives, on
comparable terms and conditions, but in no event shall such Welfare Benefits for the Executive be substantially less favorable, in the aggregate, to the Executive than the Welfare Benefits provided by the Company and the Affiliated Companies to the
Executive at the Relevant Time. 

  

	 	5.	 Termination of Employment. 

 

	 	(a)	 Cause. The Company may terminate the Executive’s employment during the Employment Period for Cause
or without Cause. For purposes of this Agreement, “Cause” shall mean: 

  

	 	i.	 the willful or gross neglect by the Executive to perform his or her employment duties with the Company or one
of its Affiliated Companies in any material respect; or 

  

	 	ii.	 the plea of guilty or nolo contendere to, or conviction for, the commission of a felony offense by the
Executive; or 

  

	 	iii.	 a material breach by the Executive of a fiduciary duty owed to the Company or one of its Affiliated Companies;
or 

  

	 	iv.	 a material breach by the Executive of any nondisclosure,
non-solicitation or non-competition obligation owed to the Company or any of its Affiliated Companies; or 

  
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	 	v.	 a clearly established, willful and material violation by the Executive of the Company’s Code of Conduct;
or 

  

	 	vi.	 a willful and material act by the Executive that represents a gross breach of trust that is inconsistent with
the Executive’s position of authority with the Company and is materially and demonstrably injurious to the Company including through potential loss of reputation. 

Prior to a termination for Cause, except in the case of a termination for (a)(ii) or in the case of a matter where there can be no reasonable opportunity to
cure, the Executive shall be given notice and an opportunity to effectuate a cure as determined by the Company in its reasonable discretion. 
 For purposes
of this provision, no act or failure to act, on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be done, by the Executive in bad faith or without reasonable belief that the Executive’s action
or omission was in the best interests of the Company. Any act, or failure to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the instructions of the Chief Executive Officer or a senior officer of the
Company or based upon the advice of counsel for the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in good faith and in the best interests of the Company. 

 

	 	(b)	 Good Reason. The Executive’s employment may be terminated by the Executive for Good Reason but only
after a Change of Control during the Change of Control Period. Good Reason shall mean: 

  

	 	i.	 A material diminution in the Executive’s Annual Base Salary; 

 

	 	ii.	 A material diminution in the Executive’s authority, duties, or responsibilities (other than as permitted
by Section 4(a)(i) hereof); 

  

	 	iii.	 A material change in the geographic location at which the Executive must perform services for the Company in
violation of Section 4(a)(ii) hereof; or 

  

	 	iv.	 Any other action or inaction that constitutes a material breach by the Company of this Agreement

  

	 	(c)	 Notice of Termination; Opportunity to Cure. Any termination by the Company for Cause, or by the
Executive for Good Reason, shall be communicated by Notice of Termination to the other party hereto given in accordance with Section 20(c) of this Agreement. For purposes of this Agreement, a “Notice of Termination” means a written
notice which (i) indicates the specific termination provision in this Agreement relied upon; (ii) to the extent applicable, sets forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of the
Executive’s employment under the provision so indicated and (iii) specifies the Date of Termination (as defined below). If the Executive is terminating employment for Good Reason: (i) the Executive shall give the Company the Notice of
Termination within 60 days following the event giving rise to the Executive’s Good Reason termination; and (ii) the Company shall have a period of 30 days after receiving the

  
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Notice of Termination to remedy the action or inaction on which Good Reason is based. If the Company fails to remedy the action or inaction on which Good Reason is based within such 30-day period, the Executive may terminate his or her or her employment for Good Reason within 30 days after the end of the cure period. 

 

	 	(d)	 Date of Termination. “Date of Termination” means if the Executive’s employment is
terminated by the Company or by the Executive, the date of receipt of the Notice of Termination or any date within 30 days thereafter that is specified in the Notice of Termination. 

 

	 	6.	 Obligations of the Company upon Termination. 

 

	 	(a)	 Involuntary Termination of Employment, other than for Cause, absent a Change of Control. If the Company
terminates the Executive’s employment other than for Cause prior to a Change of Control: 

  

	 	i.	 The Company shall pay to the Executive (in the form and at the times described below) the following:

  

	 	a.	 Within five days of the Date of Termination, a single lump sum of: (1) the Executive’s then current
unpaid and outstanding Annual Base Salary through the Date of Termination; (2) the Executive’s annual incentive assuming target performance for the calendar year in which the Date of Termination occurs (the “Target Incentive”)
prorated by multiplying such Target Incentive by a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination, and the denominator of which is 365; plus (3) any accrued unpaid vacation pay,
and 

  

	 	b.	 A severance payment equal to two (2) times the sum of (x) the Executive’s then current base
salary and (y) the Executive’s Target Incentive, payable monthly over a two-year period. 

  

	 	ii.	 The Company shall also pay the Executive a lump sum cash payment within five days following the
Executive’s Date of Termination equal to the cost of health coverage for two years, based on the monthly COBRA cost of such coverage under the Company’s health plan pursuant to Section 4980B of the Internal Revenue Code of 1986, as
amended (the “Code”) on the Date of Termination. 

  

	 	iii.	 The Company shall, at its sole expense as incurred, provide the Executive with outplacement services the scope
and provider of which shall be reasonable and consistent with industry practice for similarly situated executives and consistent with Section 19(b) of this Agreement. 

 

	 	iv.	 To the extent not already paid or provided, the Company shall timely pay or provide the Executive with any
other benefits in accordance with the terms of the applicable plans. 

  
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	 	(b)	 Involuntary Termination of Employment, other than for Cause, or Good Reason Termination, following a Change
of Control. If during the Change of Control Period, the Company shall terminate the Executive’s employment other than for Cause, or the Executive shall terminate employment for Good Reason: 

 

	 	i.	 The Company shall pay to the Executive (in the form and at the times described below) the following:

  

	 	a.	 Within five days of the Date of Termination a single lump sum of: (1) the Executive’s then current
unpaid and outstanding Annual Base Salary through the Date of Termination; (2) the Executive’s annual incentive assuming target performance for the calendar year in which the Date of Termination occurs (the “Target Incentive”)
prorated by multiplying such Target Incentive by a fraction, the numerator of which is the number of days in the current fiscal year through the Date of Termination, and the denominator of which is 365; plus (3) any unpaid accrued vacation pay,
and 

  

	 	b.	 Within five days of the Date of Termination (unless otherwise prohibited by Section 19 (c)), a Severance
payment equal to three (3) times the sum of (x) the Executive’s Annual Base Salary and (y) the Executive’s Target Incentive, payable in a single lump sum. 

 

	 	ii.	 The Company shall also pay the Executive a lump sum cash payment within five days following the
Executive’s Date of Termination equal to the cost of health coverage for three years, based on the monthly COBRA cost of such coverage under the Company’s health plan pursuant to Section 4980B of the Code on the Date of Termination.

  

	 	iii.	 The Company shall, at its sole expense as incurred, provide the Executive with outplacement services the scope
and provider of which shall be reasonable and consistent with industry practice for similarly situated executives and consistent with Section 19(b) of this Agreement. 

 

	 	iv.	 The Company shall timely pay or deliver to the Executive any vested incentive compensation (equity and/or cash)
in accordance with the terms of the Company’s 2016 Omnibus Incentive Plan (or a successor plan, as applicable) and the terms and conditions of the applicable award agreements thereunder, as approved by the Compensation Committee of the Board of
Directors. 

  

	 	v.	 To the extent not already paid or provided, the Company shall timely pay or provide the Executive with any
other benefits in accordance with the terms of the applicable plans. 

 Notwithstanding the foregoing, except with respect to payments and
benefits under Sections 6(a)(i)(a)(1), 6(a)(i)(a)(3), 6(b)(i)(a)(1) and 6(b)(i)(a)(3), all payments and benefits to be provided under this Section 6(a) shall be subject to the Executive’s execution and
non-revocation of a release substantially in the form attached hereto as Exhibit A. To the extent required by Section 409A of the Code, if payments and benefits subject to a release could be paid
in two taxable years pursuant to the terms of this Section 6(a), such payments and benefits shall be paid in the later taxable year. 

  
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	 	(c)	 Cause: Other than for Good Reason. If the Executive’s employment is terminated for Cause during the
Employment Period, the Company shall provide to the Executive the Executive’s then current and outstanding base salary through the Date of Termination, and any other vested benefits payable under applicable plans, and shall have no other
obligations under this Severance and Change of Control Agreement. 

  

	 	7.	 Non-exclusivity of Rights. Nothing in this Agreement shall
prevent or limit the Executive’s continuing or future participation in any plan, program, policy or practice provided by the Company or any of the Affiliated Companies and for which the Executive may qualify, nor, subject to Section 21(g),
shall anything herein limit or otherwise affect such rights as the Executive may have under any contract or agreement with the Company or any of the Affiliated Companies. Amounts that are vested benefits or that the Executive is otherwise entitled
to receive under any plan, policy, practice or program of or any contract or agreement with the Company or any of the Affiliated Companies at or subsequent to the Date of Termination shall be payable in accordance with such plan, policy, practice or
program or contract or agreement except as explicitly modified by this Agreement. Notwithstanding the foregoing, if the Executive receives the payments and benefits pursuant to Section 6(a) or 6(b) of this Agreement, the Executive shall not be
entitled to any severance pay or benefits under any severance plan, program or policy of the Company and the Affiliated Companies, unless otherwise specifically provided therein in a specific reference to this Agreement. 

 

	 	8.	 Full Settlement. Except with respect to Executive’s violation of Sections 10 through 14 of this
Agreement, the Company’s obligation to make the payments provided for in this Agreement and otherwise to perform its obligations hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action that the Company may have against the Executive or others. In the event of a violation by Executive of any provision of Sections 10 through 14 of this Agreement, the Company may elect to terminate any
Severance payments owed to Executive pursuant to Section 6(a)(i)(b) or 6(b)(i)(b), as of the date of such violation. 

  

	 	9.	 Parachute Payments. 

 

	 	(a)	 Notwithstanding any other provisions of this Agreement to the contrary, in the event that it shall be
determined that any payment or distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the
terms of this Agreement or otherwise (the “Payments”), would constitute an “excess parachute payment” within the meaning of Section 280G of the Code, the Company shall reduce (but not below zero) the aggregate present value
of the Payments under the Agreement to the Reduced Amount (as defined below), if reducing the Payments under this Agreement will provide the Executive with a greater net after-tax amount than would be the case
if no such reduction was made. 

  
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The Payments shall be reduced as described in the preceding sentence only if (i) the net amount of the Payments, as so reduced (and after subtracting the net amount of federal, state and
local income and payroll taxes on the reduced Payments), is greater than or equal to (ii) the net amount of the Payments without such reduction (but after subtracting the net amount of federal, state and local income and payroll taxes on the
Payments and the amount of Excise Tax (as defined below) to which the Executive would be subject with respect to the unreduced Payments). Only amounts payable under this Agreement shall be reduced pursuant to this Section 9, and any reduction
shall be made in accordance with Section 409A of the Code. 

  

	 	(b)	 The “Reduced Amount” shall be an amount expressed in present value that maximizes the aggregate
present value of Payments under this Agreement without causing any Payment under this Agreement to be subject to the Excise Tax, determined in accordance with Section 280G(d)(4) of the Code. The term “Excise Tax” means the excise tax
imposed under Section 4999 of the Code, together with any interest or penalties imposed with respect to such excise tax. 

  

	 	(c)	 All determinations to be made under this Section 9 shall be made by such certified public accounting firm
as may be designated by the Company (the “Accounting Firm”), which shall provide detailed supporting calculations both to the Company and the Executive within 15 business days of the receipt of notice from the Executive that there has been
a Payment, or such earlier time as is requested by the Company. All fees and expenses of the Accounting Firm shall be borne solely by the Company. Any determination by the Accounting Firm shall be binding upon the Company and the Executive.

  

	 	10.	 Nondisclosure of Confidential Information. The Executive shall hold in a fiduciary capacity for the
benefit of the Company all Confidential Information. During the Employment Period and after termination of the Executive’s employment with the Company, for a five year period, the Executive shall not, without the prior written consent of the
Company or as may otherwise be required by law or legal process, communicate, disclose or use any Confidential Information to or on behalf of anyone other than the Company and those designated by it. In no event shall an asserted violation of the
provisions of this Section 10 constitute a basis for deferring or withholding any amounts otherwise payable to the Executive under this Agreement. 

  

	 	11.	 Return of Company’s Property. Upon termination of employment with the Company, or at any time upon
the Company’s request, Executive shall promptly deliver to the Company all equipment, inventory, drawings, blueprints, manuals, letters, contracts, agreements, notes, notebook records, electronic media, reports, memoranda, formulae, all
Confidential Information and all other materials relating to the Company’s business, including all copies thereof, which are in the possession, custody or control of Executive. 

 

	 	12.	 Noncompetition and Nonsolicitation. Executive acknowledges and agrees that Confidential Information and
Company’s goodwill, Customer and Supplier relationships are among Company’s most valuable business assets. Executive further acknowledges that his or her position is one of trust, and that he or she will receive and have access to

  
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the highest levels of Confidential Information during the Employment Period. Accordingly, Executive expressly covenants and agrees that he or she will not, during the Restricted Period,
directly or indirectly, for Executive’s benefit or the benefit of others, whether direct or indirect, as an employee, independent contractor, owner, shareholder, partner, limited partner, or otherwise: 

 

	 	(a)	 own, manage, operate, control or participate in the ownership, management, operation or control of, or be
connected as an officer, employee, partner, director, independent contractor or in any other similar capacity with, or have any financial interest in, any Named Company Competitor, or aid or assist any Named Company Competitor in any manner that
enhances the ability of such Named Company Competitor to develop, market, sell or provide Competitive Products or Services; 

  

	 	(b)	 in the Territory, own, manage, operate, control or participate in the ownership, management, operation or
control of, or be connected as an officer, employee, partner, director, independent contractor or in any other similar capacity with, or have any financial interest in, any Company Competitor, or aid or assist any Company Competitor in any manner
that enhances the ability of such Company Competitor to develop, market, sell or provide Competitive Products or Services; provided nothing in this clause (b) shall restrict Executive from employment with a division or business unit of a
Company Competitor that does not provide Competitive Products or Services, or from employment with a Company Competitor where the Executive’s responsibilities and activities do not involve the development, marketing, sale or provision of
Competitive Products or Services (provided further, for the avoidance of doubt, that all other terms of this Section 12 continue to apply); 

  

	 	(c)	 aid or assist any person or entity for the purpose of the development, marketing, sale or provision of
Competitive Products or Services. 

  

	 	(d)	 solicit, persuade or induce any individual who is, or was at any time during the last twelve (12) months
of the Executive’s employment by the Company, an employee of the Company, for the purpose of engaging in the development, marketing, sale or provision of Competitive Products or Services: (i) to terminate or refrain from renewing or
extending such employment by the Company, or (ii) to become employed by or enter into a contractual relationship with the Executive or any other individual, person or entity; 

 

	 	(e)	 solicit, persuade or induce any individual, person or entity which is, or was at any time during the last
twelve (12) months of Executive’s employment with the Company, a Supplier of critical components to the Company, including, for the avoidance of doubt, any Supplier of Crude Tall Oil, to terminate, reduce or refrain from renewing or
extending such Supplier’s contractual or other relationship with the Company, or otherwise materially changing such Suppliers volume, terms and conditions; or 

  
 12 

	 	(f)	 solicit, persuade or induce any Customer or Indirect Customer: (i) to terminate, reduce or refrain from
renewing, extending, or entering into contractual or other relationships with the Company with regard to the purchase of Competitive Products or Services, or (ii) to become a customer of or enter into any contractual or other business
relationship with the Executive or any other individual, person or entity for the purpose of purchasing Competitive Products or Services. 

Nothing in the Agreement should be read as limiting Executive from owning less than a five percent share of publicly-traded stock of any entity. 

 

	 	13.	 Inventions and Discoveries. Executive acknowledges and agrees that Executive’s work product and
work in process, which includes, but is not limited to, inventions, discoveries, improvements, and business, financial, or marketing concepts (hereinafter referred to as “Employee Work Products”) that are conceived or made by Executive,
either alone or in conjunction with others, shall be “works made for hire” under the U.S. Copyright Act, 17 U.S.C. §101, et seq., provided such Employee Work Products were (i) conceived or made in performance of Executive’s
duties for Company; (ii) conceived or made using information received during the course of Executive’s employment with the Company, including, but not limited to, Confidential Information; (iii) used during the course of employment
with the Company; and/or (iv) conceived or made using the Company’s facilities and/or equipment. All such Employee Work Products are the property of the Company and all intellectual property rights thereto including, but not limited to,
all patents, copyrights, trademarks, manufacturing know-how and trade secrets, shall be the exclusive property of the Company. Executive agrees to disclose promptly to the Company any and all Employee Work
Products and to assign all of Executive’s interest in the Employee Work Products to the Company or its designee. Whenever requested to do so by the Company, Executive shall execute, at Company’s expense, any and all applications,
assignments, or other documents that Company shall deem necessary to protect the Company’s interest in the Employee Work Products. 

  

	 	14.	 Non-disparagement. Executive agrees that he or she will make no
unfavorable or disparaging comments, orally or in writing, regarding Company, its Affiliated Companies or their operations, policies, or procedures, and that to do so will constitute a material breach of this Agreement. 

 

	 	15.	 Remedies. Executive acknowledges and agrees that the Company’s remedy at law for a breach or
threatened breach of any of the provisions of this Agreement, including but not limited to those of Sections 10-14, would be inadequate and difficult to ascertain. Therefore, in the event of a breach or
threatened breach by the Executive of any of the provisions of this Agreement, it is agreed that in addition to the Company’s remedy at law, the Company shall be entitled to appropriate equitable relief in the form of specific performance,
preliminary or permanent injunction, temporary restraining order or any other appropriate equitable remedy which may then be available. 

  

	 	16.	 Executive Acknowledgements 

 

	 	(a)	 Executive expressly acknowledges and agrees that (i) the restrictions set forth in this Agreement
including, but not limited to, those of Sections 10-14, are reasonable in nature, scope and otherwise; (ii) the restrictions set forth in this Agreement including,

  
 13 

	 	
but not limited to, those of Sections 10-14, are necessary to protect the Company’s assets and legitimate business interests; and
(iii) Executive’s agreement to observe the restrictions set forth in this Agreement is material consideration for Executive’s employment with the Company; (iii) all or a portion of the severance payable under this Agreement shall
be considered reasonable compensation payable in consideration of the Executive’s covenant not to compete, the precise amount to be determined in accordance with Section 9(c) hereof; and (iv) Executive’s agreement to observe the
restrictions set forth in this Agreement is in material consideration for the protections and valuable consideration given Executive relative to Change-in-Control and
severance arrangements. 

  

	 	(b)	 Executive warrants and represents to the Company that Executive’s capabilities and experience are such
that the restrictive covenants set forth in Sections 10-14 will not prevent Executive from earning a livelihood and that Executive will be fully able to earn an adequate livelihood if any such restrictive
covenants should be specifically enforced against him. 

  

	 	17.	 Reports to Regulatory and Investigative Bodies. 

 

	 	(a)	 Trade Secrets Act. Pursuant to the federal Defend Trade Secrets Act, Executive acknowledges that he has
been notified of the following: An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that: (A) is made in confidence to a Federal, State, or local
government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if
such filing is made under seal. An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the
court proceeding, if the individual (i) files any document containing the trade secret under seal, and (ii) does not disclose the trade secret, except pursuant to court order. 

 

	 	(b)	 Government Agencies. Notwithstanding any other provision in this Agreement, this Agreement does not
prohibit Executive from: (1) filing a charge with or communicating with the National Labor Relations Board, the Equal Employment Opportunity Commission, or another federal, state or local government official for the purpose of reporting or
investigating a suspected violation of law; or (2) communicating directly with the U.S. Securities and Exchange Commission about a possible securities law violation. 

 

	 	18.	 Successors. 

  

	 	(a)	 This Agreement is personal to the Executive and without the prior written consent of the Company shall not be
assignable by the Executive otherwise than by will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be enforceable by the Executive’s legal representatives. 

  
 14 

	 	(b)	 This Agreement shall inure to the benefit of and be binding upon the Company and its successors and assigns.
Except as provided in Section 18(c), without the prior written consent of the Executive this Agreement shall not be assignable by the Company. 

  

	 	(c)	 The Company will require any successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the Company to assume expressly and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such
succession had taken place. As used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise. 

  

	 	19.	 Section 409A. 

 

	 	(a)	 Compliance. This Agreement is intended to comply with the requirements of Section 409A of the Code,
and shall in all respects be administered in accordance with Section 409A of the Code and the regulations issued thereunder. ; provided, however, that the tax treatment of benefits under this Agreement is not warranted or guaranteed
Notwithstanding anything in the Agreement to the contrary, distributions may only be made under the Agreement upon a Section 409A “separation from service” or other event permitted by Section 409A, and in a manner permitted by
Section 409A of the Code or an applicable exemption. For purposes of Section 409A of the Code, the right to a series of payments under the Agreement shall be treated as a right to a series of separate payments. The Executive may not,
directly or indirectly designate the calendar year of a payment. 

  

	 	(b)	 Reimbursements. All reimbursements and in-kind benefits provided
under the Agreement shall be made or provided in accordance with the requirements of Section 409A of the Code, including: (i) the amount of expenses eligible for reimbursement, or in-kind benefits
provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; (ii) any reimbursement of an eligible expense
shall be paid to the Executive on or before the last day of the calendar year following the calendar year in which the expense was incurred; (iii) any right to reimbursements or in-kind benefits under
this Agreement shall not be subject to liquidation or exchange for another benefit; and (iv) reimbursement shall be provided for expenses incurred during the period specified in this Agreement, or if no such period is specified, during the
Executive’s lifetime. If reimbursements are made with respect to outplacement services or outplacement services are provided, such reimbursements or outplacement services shall be provided in accordance with the requirements of
Section 409A, including the requirement that such reimbursements be incurred or services be provided by the end of the second year after the year in which the Date of Termination occurs and all reimbursement payments be made by the end of the
third year after the year in which the Date of Termination occurs. 

  
 15 

	 	(c)	 Specified Employee. Notwithstanding any provision in this Agreement to the contrary, if the Executive is
a “specified employee” of a publicly traded corporation under Section 409A on the Executive’s Date of Termination and if payment of any amount under this Agreement is required to be delayed for a period of six months after
separation from service pursuant to Section 409A of the Code, payment of such amount shall be delayed as required by Section 409A of the Code, and the accumulated postponed amount shall be paid in a lump sum payment within 10 days after
the end of the six-month period. If the Executive dies during the postponement period prior to the payment of postponed amount, the amounts withheld on account of Section 409A of the Code shall be paid to
the personal representative of the Executive’s estate within 60 days after the date of Executive’s death. A “specified employee” shall mean an employee who, at any time during the 12-month
period ending on the identification date, is a “specified employee” under Section 409A of the Code, as determined by the Compensation Committee of the Board. The determination of “specified employees,” including the number
and identity of persons considered “specified employees” and the identification date, shall be made by the Compensation Committee in accordance with the provisions of Sections 416(i) and 409A of the Code and the regulations issued
thereunder. 

  

	 	20.	 Recoupment. Any amounts paid to Executive hereunder shall be subject to recoupment pursuant to the terms
of any recoupment policy the Company may adopt and as such policy may be from time to time amended, in any case as in effect immediately prior to the Effective Date. 

 

	 	21.	 Miscellaneous. 

 

	 	(a)	 This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without
reference to principles of conflict of laws. The captions of this Agreement are not part of the provisions hereof and shall have no force or effect. This Agreement may not be amended or modified otherwise than by a written agreement executed by the
parties hereto or their respective successors and legal representatives The parties agree that any controversy or claim arising out of or relating to this Agreement shall be brought in courts of the State of Delaware or in the United States District
Court in Delaware, and the parties hereby waive any claim or defense that such forum in inconvenient or otherwise improper. 

  

	 	(b)	 The provisions of Sections 10-14 of this Agreement shall survive the
termination of the Executive’s employment with the Company. 

  
 16 

	 	(c)	 All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the
other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 

 If
to the Executive: 
 John C. Fortson 

                     

                     

If to the Company: 

Ingevity Corporation 
 4920
O’Hear Avenue 
 Suite 400 

North Charleston, SC 29405 

Attention: General Counsel 
 or
to such other address as either party shall have furnished to the other in writing in accordance herewith. Notice and communications shall be effective when actually received by the addressee. 

 

	 	(d)	 The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement. Whenever possible, each provision or portion of any provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision or
portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule, such invalidity, illegality or unenforceability shall not affect any other provision or portion of any
provision, and this Agreement shall be reformed, construed, and enforced as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein. If a final judicial determination is made by a court having
jurisdiction that the time or scope of any provision in this Agreement is unreasonable or otherwise unenforceable, such provision shall not be rendered void but shall be deemed amended to apply to the maximum extent the court determines enforceable.

  

	 	(e)	 The Company may withhold from any amounts payable under this Agreement such U.S. federal, state, local or
foreign taxes as shall be required to be withheld pursuant to any applicable law or regulation. 

  

	 	(f)	 The Executive’s or the Company’s failure to insist upon strict compliance with any provision of this
Agreement or the failure to assert any right the Executive or the Company may have hereunder, including, without limitation, the right of the Executive to terminate employment for Good Reason pursuant to Section 5(c)(i)-(iv) of this Agreement,
shall not be deemed to be a waiver of such provision or right or any other provision or right of this Agreement. 

  
 17 

	 	(g)	 The terms of this Agreement, upon its execution, supersede any other agreement between the parties with respect
to the subject matter hereof, including, without limitation the Severance and Change of Control Agreement, dated as of March 1, 2017, between the Executive and the Company. The Executive and the Company acknowledge that, except as may otherwise
be provided under any other written agreement between the Executive and the Company, the employment of the Executive by the Company is “at will”, subject in full to the obligations of the Company under Section 6 and set forth
elsewhere herein. 

  

	 	(h)	 In the event of a conflict between the terms of this Agreement and the terms of any individual grant, the terms
of this Agreement, representing the decision of the Compensation Committee, shall govern. 

 IN WITNESS WHEREOF, the
Executive has hereunto set the Executive’s hand and, pursuant to the authorization from its Board of Directors, the Company has caused this Agreement to be executed in its name on its behalf, all as of the day and year first set forth below.

  

							
	INGEVITY CORPORATION	  		  	 EXECUTIVE

				
	By	  	 /s/ Richard B. Kelson
	  		  	 /s/ John C. Fortson

		  	Richard B. Kelson	  		  	John C. Fortson
		  	Chairman of the Board, and Interim	  		  	
		  	President and Chief Executive Officer	  		  	

 Dated as of August 21, 2020 

  
 18 

 EXHIBIT A 

RELEASE 
 In
consideration of the severance benefits offered to me by Ingevity Corporation (the “Company”) under the Severance and Change of Control Agreement dated as of
                     (the “Agreement”) and other consideration, I on behalf of myself, and on behalf of my heirs, administrators,
representatives, successors, and assigns (the “Releasors”), hereby release acquit and forever discharge the Company, all of its past, present and future subsidiaries and affiliates and all of their respective directors, officers,
employees, agents, trustees, partners, shareholders, consultants, independent contractors and representatives, all of their respective heirs, successors, and assigns and all persons acting by, through, under or in concert with them (the
“Releasees”) from any and all claims, charges, complaints, obligations, promises, agreements, controversies, damages, remedies, demands, actions, causes of action, suits, rights, costs, debts, expenses and liabilities that the Releasors
might otherwise have asserted arising out of my employment with the Company and its subsidiaries and affiliates, including the termination of that employment. 

However, the Releasors are not releasing any rights under (i) any qualified employee retirement plan; (ii) any claim for
compensation and benefits to be provided to me under the Agreement; (ii) any claim for vested benefits or benefits that I am otherwise entitled to receive under any plan, policy, practice or program of or any contract or agreement with the
Company or any of the Affiliated Companies at or subsequent to the Date of Termination; (iii) any claim related to my indemnification as an officer, director and employee of the Affiliated Companies under the Company’s Certificate of
Incorporation or By-Laws; or (iv) any rights or claims that may arise after the date on which I sign this release (the “Release”). Those rights shall survive unaffected by this Release. 

I understand that, as a consequence of my signing this Release, I am giving up, any and all rights I might otherwise have with respect to my
employment and the termination of that employment including but not limited to rights under (1) the Age Discrimination in Employment Act of 1967, as amended; (2) any and all other federal, state, or municipal laws prohibiting
discrimination in employment on the basis of sex, race, national origin, religion, age, handicap, or other invidious factor, or retaliation; and (3) any and all theories of contract or tort law related to my employment or termination thereof,
whether based on common law or otherwise. 
 I acknowledge and agree that: 

A.    The benefits I am receiving under the Agreement constitute consideration over and above any benefits that I might be
entitled to receive without executing this Release. 
 B.    The Company advised me in writing to consult with an
attorney prior to signing this Release. 
 C.    I was given a period of at least
twenty-one (21) days within which to consider this Release; and 

  
 19 

 D.    The Company has advised me of my statutory right to revoke my
agreement to this Release at any time within seven (7) days of my signing this Release by delivering written notice of such revocation to [name and address of Company contact], and this Release shall be come final and binding if no such notice
of revocation is received by the Company within such seven (7) period. 
 I warrant and represent that my decision to sign this Release
was (1) entirely voluntary on my part; (2) not made in reliance on any inducement, promise, or representation, whether express or implied, other than the inducements, representations, and promises expressly set forth herein and in the
Agreement and (3) did not result from any threats or other coercive activities to induce my agreement to this Release. 
 If I exercise
my right to revoke this Release within seven (7) days of my execution of this Release, I warrant and represent that I will: (1) notify the Company in writing, in accordance with the attached Agreement, of my revocation of this Release, and
(2) simultaneously return in full any consideration received from the Company or any employee benefit plan sponsored by the Company. 

The parties agree that this release shall not affect the rights and responsibilities of the US Equal Employment Opportunity Commission
(hereinafter “EEOC”) to enforce the Age Discrimination in Employment Act of 1967, as amended and other laws. In addition, the parties agree that this release shall not be used to justify interfering with my protected right to file a charge
or participate in an investigation or proceeding conducted by the EEOC. The parties further agree that the Releasors knowingly and voluntarily waive all rights or claims that arose prior to the date hereof that the Releasors may have against the
Releasees to receive any benefit or remedial relief (including, but not limited to, reinstatement, back pay, front pay, damages, attorneys’ fees, experts’ fees) as a consequence of any investigation or proceeding conducted by the EEOC.

 The provisions of this Release are severable, and if any part of it is found to be unenforceable, the other paragraphs shall remain fully
valid and enforceable. This Release shall be construed in accordance with its fair meaning and in accordance with the laws of the State of Delaware, without regard to conflicts of laws principles. Capitalized terms used but not defined herein shall
have the meanings set forth in the Severance and Change of Control Agreement. I further warrant and represent that I fully understand and appreciate the consequences of my signing this Release. Notwithstanding any other provision in this Release,
the parties agree that this Release does not prohibit me from: (1) filing a charge with or communicating with the National Labor Relations Board, the Equal Employment Opportunity Commission, or another federal, state or local government
official for the purpose of reporting or investigating a suspected violation of law; or (2) communicating directly with the U.S. Securities and Exchange Commission about a possible securities law violation. 

[Signature Block] 

  
 20 

 EXHIBIT B 

NAMED COMPANY COMPETITORS 

“Named Company Competitor” means [omitted]. 

  
 21 

 EXHIBIT C 

TERRITORY 

“Territory” means [omitted]. 

  
 22CPI AEROSTRUCTURES, INC. 8-K

 

Exhibit 10.1

 

SIXTH
AMENDMENT AND WAIVER 

TO
AMENDED AND RESTATED CREDIT AGREEMENT

 

SIXTH
AMENDMENT AND WAIVER TO AMENDED AND RESTATED CREDIT AGREEMENT (the “Amendment”) entered into as of August
24, 2020 by and among CPI AEROSTRUCTURES, INC. (the “Borrower”), BANKUNITED, N.A., a national banking association,
as Sole Arranger, Agent and a Lender, BNB BANK, a New York banking corporation, as a Lender (“BNB”), and the
other financial institutions from time to time parties thereto as lenders (collectively, the “Lender”), and
BANKUNITED, N.A., a national banking association, as administrative agent and collateral agent for the Lender thereunder (in such
capacities, the “Administrative Agent” and the “Collateral Agent,” respectively and each
an “Agent”).

 

WHEREAS,
the Borrower, the Agent and each Lender are parties to that Amended and Restated Credit Agreement dated as of March 24, 2016,
as amended by that First Amendment and Waiver to Amended and Restated Credit Agreement dated as of May 9, 2016, as further amended
by that Second Amendment to Amended and Restated Credit Agreement dated as of July 13, 2017, as further amended by that Third
Amendment and Waiver to Amended and Restated Credit Agreement dated as of August 15, 2018, as further amended by that Fourth Amendment
dated as of December 20, 2018, and as further amended by that Fifth Amendment to Amended and Restated Credit Agreement dated as
of June 25, 2019 as same may be hereafter amended and modified (collectively, the “Agreement”); and

 

WHEREAS,
due to certain non-compliance with respect to ASC Topic 606 for percentage of completion accounting, Borrower is required to restate
its financial statements as of the end of each fiscal quarter for the 2018 and 2019 fiscal years (the “Restatement”);

 

WHEREAS,
the Borrower has requested that the Agent and each Lender (i) amend certain provisions of the Agreement, and (ii) waive certain
covenant non-compliance under the Agreement caused by, inter alia, the Restatement; and

 

WHEREAS,
the Agent and each Lender are willing to accede to such request to (i) amend certain provisions of the Agreement, and (ii) subject
to the limitations herein, waive certain covenant non-compliance under the Agreement, subject to the terms and conditions hereinafter
set forth.

 

NOW,
THEREFORE, in consideration of the premises and the agreements hereinafter set forth and for other good and valuable consideration,
the parties hereto hereby agree as follows:

 

1.            All capitalized terms used herein, unless otherwise defined herein, have the same meanings provided therefor in the Agreement.
This Amendment and the Notes executed in the connection herewith constitute Loan Documents.

 

     

     

    

 

2.            Subject to the terms and conditions hereof, the Agreement is hereby amended as follows: 

 

(a)       Section 1.1 of the Agreement (Defined Terms) is amended by deleting the following definitions and substituting the following therefor:

 

“Aggregate
Revolving Credit Maximum Amount”: shall mean the principal amount of up to $24,000,000.00.

 

“Applicable
Margin”: means, from time to time with respect to Revolving Credit Loans and Term Loans and the fees payable under Section
3.5(a), the following percentages per annum:

 

	Eurodollar
    Rate Margin	Base
    Rate Margin	Commitment
    Fee
	3.25%	0.75%	0.50%

 

“Closing
Date”: the first date that all the conditions precedent in Section 5.1 are satisfied or waived in accordance with Section
10.1, or, in the case of the Term Loan, the 2020 Effective Date.

 

“EBITDA”:
means:

 

(I)         for the fiscal periods ended 6/30/16, 9/30/16 and 12/31/16, an amount equal to Net Income of the Borrower and its Subsidiaries
on a consolidated basis for the most recently completed measurement period plus (a) the following to the extent deducted
in calculating such Net Income: (i) Interest Expense, (ii) the provision for Federal, state, local and foreign income taxes payable,
(iii) depreciation and amortization expense and (iv) other non-recurring expenses reducing such Net Income which do not represent
a cash item in such period or any future period (in each case of or by the Borrower and its Subsidiaries for such measurement
period) minus (b) the following to the extent included in calculating such Net Income: (i) Federal, state, local and foreign
income tax credits, (ii) all non-cash items increasing Net Income (in each case of or by the Borrower and its Subsidiaries for
such measurement period), and (iii) the sum of all non-recurring reimbursement and termination payments including (without limitation)
all A-10 Contract Reimbursement Payments, Contract Termination Payments and A-10 2015 REA Payments and plus (c) the additional
costs to complete 38 additional shipsets with respect to the Boeing A-10 Wing Replacement Program in the approximate aggregate
amount not to exceed $15,300,000; and

 

(II)        at any date of determination other than as described in clause (I) above, an amount equal to Net Income of the Borrower and its
Subsidiaries on a consolidated basis for the most recently completed measurement period (excluding the proceeds of the PPP Loan
or any conversion of same to income after forgiveness), plus (a) the following to the extent deducted in calculating such
Net Income: (i) Interest Expense, (ii) the provision for Federal, state, local and foreign income taxes payable, (iii) depreciation
and amortization expense, (iv) other non-recurring expenses reducing such Net Income which do not represent a cash item in such
period or any future period (in each case of or by the Borrower and its Subsidiaries for such measurement period) and (v) expenses
reducing such Net Income which do not represent a cash item in such period or any future period relating to equity based compensation
and minus (b) the following to the extent included in calculating such Net Income: (i) Federal, state, local and foreign
income tax credits (ii) all non-cash items increasing Net Income (in each case of or by the Borrower and its Subsidiaries for
such measurement period), and (iii) the sum of all non-recurring reimbursement and termination payments including (without limitation)
all A-10 Contract Reimbursement Payments, Contract Termination Payments and A-10 2015 REA Payments.

 

    2

     

    

 

“Funded
Debt”: means, as of any date of determination, for the Borrower and its Subsidiaries on a consolidated basis, the sum
of (a) the outstanding principal amount of all obligations, whether current or long-term, for borrowed money (including Obligations
hereunder) and all obligations evidenced by bonds, debentures, notes, loan agreements or other similar instruments (excluding
the PPP Loan other than any portion thereof determined by the PPP Lender or the US Small Business Administration to not be subject
to forgiveness), (b) all purchase money Indebtedness, (c) all direct obligations arising under letters of credit (including standby
and commercial), bankers’ acceptances, bank guaranties, surety bonds and similar instruments, (d) all obligations in respect
of the deferred purchase price of property of services (other than trade accounts payable in the ordinary course of business),
(e) all Attributable Indebtedness, (f) without duplication, all Guaranty Obligations with respect to outstanding Indebtedness
of the types specified in clauses (a) through (e) above of Persons other than the Borrower or any Subsidiary, and (g) all Indebtedness
of the types referred to in clauses (a) through (f) above of any partnership or joint venture (other than a joint venture that
is itself a corporation of limited liability company) in which the Borrower or a Subsidiary is a general partner or joint venture,
unless such Indebtedness is expressly made non-recourse to the Borrower or such Subsidiary.

 

“Interest
Payment Date”: (a) as to any Base Rate Revolving Loan, the first Business Day of each April, July, October and January,
(b) as to any Base Rate Term Loan, the first Business Day of each month, (c) as to any Eurodollar Loan having an Interest Period
of three (3) months or less, the last day of such Interest Period, (d) as to any Eurodollar Loan having an Interest Period longer
than three (3) months, (i) each day which is three (3) months after the first day of such Interest Period and (ii) the last day
of such Interest Period, and (e) as to each Loan, the Maturity Date of such Loan.

 

“Law”
or “Laws”: shall mean Legal Requirement or Legal Requirements, as the case may be.

 

    3

     

    

 

“LIBOR
Rate”: with respect to any Eurodollar Loan for any Interest Period applicable thereto, the greater of (i) the rate per
annum (rounded upward, if necessary, to the nearest 1/16 of one percent) equal to the composite London Interbank Offered Rate
which appears on the Reuters Screen LIBOR01 Page as of 11:00 a.m. London time on the day that is two (2) London Banking Days preceding
the first day of such Interest Period (or if not reported thereon, then as determined by the Administrative Agent from another
recognized source or interbank quotation); and (ii) one-half of one percent (1/2%). In the event that the Board of Governors of
the Federal Reserve System shall impose a Reserve Percentage with respect to LIBOR deposits of the Administrative Agent, then
for any period during which such Reserve Percentage shall apply, LIBOR shall be equal to the amount determined above divided by
an amount equal to one (1) minus the Reserve Percentage. “Reserve Percentage” shall mean the maximum aggregate
reserve requirement (including all basic, supplemental, marginal and other reserves) which is imposed on member banks of the Federal
Reserve System against “Euro-currency Liabilities” as defined in Regulation D. If a Benchmark Transition Event
occurs, LIBOR shall be modified in accordance with Section 3.17.

 

“Net
Income”: for any measuring period, the net income (or deficit) of the Borrower and its Subsidiaries for such period
(taken as a cumulative whole), determined on a consolidated basis in accordance with GAAP; provided that any non-cash extraordinary
gains and losses in accordance with GAAP and the conversion of PPP Loan proceeds to income after forgiveness shall be excluded
in determining Net Income.

 

“Revolving
Credit Termination Date”: May 2, 2022.

 

“Term
Loan Maturity Date”: May 2, 2022.

  

(b)      Section 1.1 of the Agreement (Defined Terms) is amended by adding the following new definitions, each to read as follows:

 

“2020
Effective Date”: shall mean the “Effective Date” defined in the Sixth Amendment and Waiver to Amended and
Restated Credit Agreement among the Agent, Lenders, Borrower and Guarantors.

 

“Administrative
Questionnaire”: means an administrative questionnaire in substantially the form reasonably approved by the Administrative
Agent.

 

“Benchmark
Transition Event”: shall have the meaning set forth in Section 3.17.

 

    4

     

    

 

“CARES
Act”: means the Coronavirus Aid, Relief and Economic Security Act (H.R. 748), as same may be amended from time to time.

 

“Lending
Office”: means, with respect to any Lender, the office of such Lender maintaining such Lender’s Loans.

 

“Maturity
Date”: means, as the case may be, the Revolving Credit Termination Date and the Term Loan Maturity Date.

 

“PPP
Loan”: means an unsecured “paycheck protection program” loan to Borrower in the principal amount of up to
$4,795,000.00 obtained under the CARES Act.

 

“Securitization
Transaction”: means, with respect to any Person, any financing transaction or series of financing transactions (including
factoring arrangements) pursuant to which such Person or any Subsidiary of such Person may sell, convey or otherwise transfer,
or grant a security interest in, accounts, payments, receivables, rights to future lease payments or residuals or similar rights
to payment to a special purpose subsidiary or affiliate of such Person.

 

(c)         Section 2.5 of the Agreement (Term Commitment) is amended by deleting same and substituting the following therefor:

 

“2.5       Term
Commitment. Subject to the terms and conditions hereof, pursuant to Section 2.6 below, each Term Lender severally (but not
jointly) agrees to make the Term Loan (defined below) to the Borrower on the 2020 Effective Date in an amount not to exceed in
the aggregate the amount of the Term Commitment of each Term Lender. On the 2020 Effective Date, Borrower shall refinance the
outstanding principal balance of the prior term loan under this Agreement and increase such principal amount by $6,000,000.00.”

 

(d)         Section 2.6 of the Agreement (Term Loan Borrowing) is amended by deleting same and substituting the following therefor:

 

“2.6       Term
Loan Borrowing. Subject to the terms and conditions hereof, upon receipt by the Administrative Agent of the proceeds of the
Term Loan, each Term Lender severally agrees to make available to the Borrower (through the Administrative Agent) on the 2020
Effective Date its Term Loan Percentage of term loans in the aggregate principal amount as set forth on Schedule I (the “Term
Loan”). The Term Loan shall be evidenced by a Term Note of the Borrower payable to each Term Lender. Each Term Note
shall be dated the Closing Date and shall mature on the applicable Term Loan Maturity Date at which time the entire outstanding
principal balance and all interest thereon shall be due and payable. The Term Loan shall bear interest at a rate per annum equal
to the applicable Eurodollar Rate for the applicable Interest Period or the Base Rate or combinations thereof provided that each
Eurodollar Term Loan shall be in an amount of $3,000,000.00 or a whole multiple of $500,000.00 in excess thereof pursuant to notices
delivered to Administrative Agent in the form of a Notice of Transaction in accordance with Section 3.2. Interest shall be payable
in arrears on the Interest Payment Date in accordance with Section 3.1 hereof. The number of Term Loans outstanding at any one
time shall be limited pursuant to Section 3.3 hereof. Prepayments shall be subject to Section 3.4 hereof. Each Term Note shall
be entitled to the benefits and subject to the provisions of this Agreement.”

 

    5

     

    

 

(e)       Section 2.7 of the Agreement (Repayment of Term Loan) is amended by deleting same and substituting the following therefor:

 

“2.7     Repayment
of Term Loan. The principal balance of the Term Loan shall be payable to the Administrative Agent for the account of each
Term Lender (in accordance with each Term Lender’s respective Term Loan Percentage) in consecutive monthly installments
of principal, in the principal amounts set forth on the table below, such payments commencing on May 1, 2016 with each succeeding
installment being due on the first Business Day of each month thereafter until May 1, 2022 with a final payment due on the applicable
Term Loan Maturity Date in an amount equal to the then outstanding principal balance of the Term Loan. Notwithstanding the foregoing,
upon Borrower’s receipt of a Contract Termination Payment (if any), a A-10 2015 REA Payment or Net Offering Proceeds, Borrower
shall then either (1) prepay the Term Loan (which in the case of Eurodollar Term Loans shall be on the last day of the current
Interest Period) in the principal amount equal to the applicable Designated Amount plus all accrued and unpaid interest through
the date of prepayment, or (2) at Borrower’s request (subject to Agent’s approval), deposit into a bank account held
by and pledged (as additional collateral for the Loans and any related interest rate swap obligations, if applicable) to the Agent
on behalf of the Term Lenders, on terms and documentation satisfactory to the Agent and its counsel, an amount equal to the applicable
Designated Amount. Each Term Lender shall receive its Term Loan Percentage of each installment of principal paid under the Term
Loan.

 

	First Business Day	 	Principal Amortization	 
	Month and Year	 	Amount per Month	 
	May 2016 – April 2017	 	$	41,667.67	 
	May 2017 – April 2018	 	$	125,000.00	 
	May 2018 – August 2018	 	$	166,666.67	 
	September 2018 – June 2021	 	$	175,000.00	 
	July 2021-Maturity	 	$	200,000.00	”

 

(f)        Section 3.1(c) of the Agreement is amended by deleting same and substituting the following therefor:

 

“(c)      If
all or a portion of (i) the principal amount of any Loan, (ii) any interest payable thereon or (iii) any fee or other amount payable
hereunder shall not be paid when due (whether at the stated maturity, by acceleration or otherwise), such amount shall bear interest
for each day after the due date until such amount is paid in full at a rate per annum equal to (x) in the case of principal, the
rate that would otherwise be applicable thereto pursuant to the foregoing provisions of this Section plus 3% per annum or (y)
in the case of any such overdue interest, fee or other amount, the rate described in paragraph (b) of this Section plus 3% per
annum. If any Event of Default described in Sections 8.1(c) (with respect to Section 7.1 only), (f), (h) or (j) shall occur and
be continuing, and the Required Lenders shall give notice to the Borrower that this sentence shall apply, then, until such Event
of Default shall be cured or waived or such notice shall be withdrawn, the outstanding principal amount of all Loans shall bear
interest at 3% per annum above the rate that would otherwise be applicable thereto pursuant to the foregoing provisions of this
Section 3.1 (other than the first sentence of this paragraph (c)).”

 

    6

     

    

 

(g)        Section 3.1(i) of the Agreement is amended by deleting same and substituting the following therefor:

 

“(i)        The
Designated Account and the funds on deposit therein shall be subject to the Collateral Agent's right of setoff, Collateral Agent's
lien and other rights for the benefit of the Lenders as the Collateral Agent has in and to deposit accounts maintained therein.
Nothing contained herein shall be deemed to be a waiver of any rights or remedies the Collateral Agent may have against the Borrower
or any funds of the Borrower on deposit at the Collateral Agent. No failure of the Collateral Agent to require, and no delay by
the Collateral Agent in requiring, the Borrower to comply with any requirement of this Agreement shall constitute a waiver of
compliance with any requirement of this Agreement. No failure of the Collateral Agent to exercise, and no delay by the Collateral
Agent in exercising, any right or any remedy, whether under this Agreement, at law or otherwise shall constitute a waiver of any
such right or remedy. Any waiver by the Collateral Agent of compliance with a requirement of this Agreement, or of any right or
any remedy, shall be effective only if in a writing signed by the Collateral Agent, and shall be limited to the specific instance
for which such waiver was granted and shall not constitute a waiver of such compliance, right or remedy in the future or of compliance
with any other requirement, or of any other right or remedy, whether under this Agreement or otherwise.”

 

(h)         Section 3.3 of the Agreement (Minimum Amounts; Maximum Number of Loans) is amended by deleting same and substituting the following
therefor:

 

“3.3       Minimum
Amounts; Maximum Number of Loans. All borrowings, conversions and continuations of Loans hereunder and all selections of Interest
Periods hereunder shall be in such amounts and be made pursuant to such elections so that, after giving effect thereto: (a) for
the Revolving Credit Loans (i) not more than six (6) Interest Periods shall be outstanding at any time and (ii) the aggregate
principal amount of the Eurodollar Loans comprising each Interest Period shall be equal to $1,000,000 or an integral multiple
of $500,000 in excess thereof; and (b) for the Term Loans (i) not more than four (4) Interest Periods shall be outstanding at
any time and (ii) the aggregate principal amount of the Eurodollar Loans comprising each Interest Period shall be equal to $500,000
or an integral multiple of $100,000 in excess thereof.”

 

    7

     

    

 

(i)          Section 3.4(i) of the Agreement is amended by deleting same and substituting the following therefor:

 

“(i)        If
the Borrower consummates a public offering of its stock and (1) raises $7,000,000 or more (such public offering being an “Offering”),
and (2) after giving effect to the receipt of the net proceeds (excluding reasonable costs actually incurred in connection therewith)
of such public offering (“Net Offering Proceeds”), Borrower shall then promptly utilize an amount equal to 25% of
Borrower’s Net Offering Proceeds to pay down (or in the case of the Term Loan, cash secure with Agent’s approval in
accordance with Section 2.7) $1,200,000.00 towards the balloon payment of the Term Loan, with the remaining balance of such portion
of the Net Offering Proceeds to pay down the outstanding Revolving Credit Loans.”

 

(j)           Section 3.5(a) of the Agreement is amended by deleting same and substituting the following therefor:

 

“(a)        The
Borrower shall pay to the Administrative Agent for the account of each Revolving Lender in accordance with its Revolving Credit
Commitment Percentage, a commitment fee equal to the Commitment Fee set forth in the Applicable Margin definition times the actual
daily amount by which the Aggregate Revolving Credit Commitment exceeds the Aggregate Revolving Credit Outstanding. The commitment
fee shall accrue at all times during the relevant period that the Revolving Credit Commitments are outstanding including at any
time during which one or more of the conditions in Section 5 (inclusive) is not met, and shall be due and payable quarterly in
arrears on the first Business Day of each April, July, October and January, commencing with the first such date to occur after
the Closing Date and on the last day of the Revolving Credit Commitment Period.”

 

(k)          Section 3.7 of the Agreement (Inability to Determine Interest Rate) is amended by deleting same and substituting the following
therefor:

 

“3.7        Inability
to Determine Interest Rate. If prior to the first day of any Interest Period, subject to Section 3.17 (Effect of Benchmark
Transition Event):

 

(a)          the Administrative Agent shall have determined (which determination shall be conclusive and binding upon the Borrower) that, by
reason of circumstances affecting the relevant market, adequate and reasonable means do not exist for ascertaining the Eurodollar
Rate for such Interest Period, or

 

(b)          the Administrative Agent has received notice from the Required Lenders that the Eurodollar Rate determined or to be determined
for such Interest Period will not adequately and fairly reflect the cost to such Lenders of making or maintaining their Eurodollar
Loans during such Interest Period, the Administrative Agent shall give telecopy or telephonic notice thereof to the Borrower and
the Lenders as soon as practicable thereafter. If such notice is given (i) any Eurodollar Loans requested to be made on the first
day of such Interest Period shall be made as Base Rate Loans in U.S. Dollars, (ii) any Loans that were to have been converted
on the first day of such Interest Period to or continued as Eurodollar Loans shall be converted to or continued as Base Rate Loans
and (iii) any outstanding Eurodollar Loans shall be converted on the last day of such Interest Period to Base Rate Loans. Until
such notice has been withdrawn by the Administrative Agent, no further Eurodollar Loans shall be made or continued as such, nor
shall the Borrower have the right to convert Base Rate Loans to Eurodollar Loans.”

 

    8

     

    

 

(l)           Section 3.9 of the Agreement (Illegality) is amended by deleting same and substituting the following therefor:

 

“3.9        Illegality.
Notwithstanding any other provision herein, subject to Section 3.17 (Effect of Benchmark Transition Event), if the adoption of
or any change in any Legal Requirement or in the interpretation or application thereof shall make it unlawful for any Lender to
make or maintain Eurodollar Loans as contemplated by this Agreement, (a) the commitment of such Lender hereunder to make Eurodollar
Loans, continue Eurodollar Loans as such and convert Base Rate Loans to Eurodollar Loans shall forthwith be cancelled until such
time as it shall no longer be unlawful for such Lender to make or maintain the affected Loans and (b) such Lender’s Loans
then outstanding as Eurodollar Loans, if any, shall be converted automatically to Base Rate Loans on the respective last days
of the then current Interest Periods with respect to such Eurodollar Loans or within such earlier period as may be required by
law. If any such conversion of a Eurodollar Loan occurs on a day which is not the last day of the then current Interest Period
with respect thereto, the Borrower shall pay to such Lender such amounts, if any, as may be required pursuant to Section 3.11.”

 

(m)         Section 3.10(a) of the Agreement is amended by deleting same and substituting the following therefor:

 

“(a)        In
the event that any Benchmark Transition Event occurs or the adoption of or any change in any Legal Requirement (or in the interpretation
or application thereof) or compliance by any Lender with any request or directive (whether or not having the force of law) from
any central bank or other Governmental Authority:”

 

    9

     

    

 

(n)          The definition of “Change in Law” in Section 3.10(b) of the Agreement is amended by deleting same and substituting
the following therefor:

 

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

 

(o)          Section 3.13 of the Agreement (Use of Proceeds) is amended by deleting same and substituting the following therefor:

 

“3.13       Use
of Proceeds. The proceeds of the Loans shall be used to fund the refinancing of existing revolving and term indebtedness payable
to the Lenders, pay fees, commissions and expenses in connection therewith, to fund Permitted Acquisitions in accordance with
the provisions hereof and for the general working capital and general corporate purposes of the Borrower and its Subsidiaries.”

 

(p)          Section 3.14(a) is amended by deleting same and substituting the following therefor:

 

“(a) Each
Lender agrees that if it makes any demand for payment under Section 3.10 or 3.12, or if any adoption or change of the type described
in Section 3.9 shall occur with respect to it, it will use reasonable efforts (consistent with its internal policy and legal and
regulatory restrictions and so long as such efforts would not be disadvantageous to it, as determined in its sole discretion)
to designate a different Lending Office or to assign its rights and obligations hereunder to another of its offices, branches
or affiliates if such designation or assignment would reduce or obviate the need for the Borrower to make payments under Section
3.10 or 3.12, or would eliminate or reduce the effect of any adoption or change described in Section 3.9.”

 

(q)          A new section, Section 3.17, is hereby added to the Agreement as follows:

 

“3.17      Effect
of Benchmark Transition Event

 

(a)         Benchmark Replacement. Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence
of a Benchmark Transition Event or an Early Opt-in Election, as applicable, the Administrative Agent and the Borrower may amend
this Agreement to replace LIBOR Rate with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event
will become effective at 5:00 p.m. on the fifth (5th) Business Day after the Administrative Agent has posted such proposed
amendment to all Lenders and the Borrower so long as the Administrative Agent has not received, by such time, written notice of
objection to such amendment from Lenders comprising the Required Lenders. Any such amendment with respect to an Early Opt-in Election
will become effective on the date that Lenders comprising the Required Lenders have delivered to the Administrative Agent written
notice that such Required Lenders accept such amendment. No replacement of LIBOR Rate with a Benchmark Replacement pursuant to
this Section titled “Effect of Benchmark Transition Event” will occur prior to the applicable Benchmark Transition
Start Date.

 

    10

     

    

 

(b)         Benchmark Replacement Conforming Changes. In connection with the implementation of a Benchmark Replacement, the Administrative
Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to
the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will
become effective without any further action or consent of any other party to this Agreement.

 

(c)         Notices; Standards for Decisions and Determinations. The Administrative Agent will promptly notify the Borrower and
the Lenders of (i) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related
Benchmark Replacement Date and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the
effectiveness of any Benchmark Replacement Conforming Changes and (iv) the commencement or conclusion of any Benchmark Unavailability
Period. Any determination, decision or election that may be made by the Administrative Agent or Lenders pursuant to this Section
titled “Effect of Benchmark Transition Event,” including any determination with respect to a tenor, rate or adjustment
or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action,
will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from
any other party hereto, except, in each case, as expressly required pursuant to this Section titled “Effect of Benchmark
Transition Event.”

 

(d)         Benchmark Unavailability Period. Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability
Period, the Borrower may revoke any request for a Eurodollar Loan of, conversion to or continuation of Eurodollar Loans to be
made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have
converted any such request into a request for a Loan of or conversion to Base Rate Loans.

 

(e)         Certain Defined Terms. As used in this Section titled “Effect of Benchmark Transition Event”:

 

“Benchmark
Replacement” means the sum of: (a) the alternate benchmark rate (which may include Term SOFR) that has been selected
by the Administrative Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement
rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market
convention for determining a rate of interest as a replacement to LIBOR Rate for U.S. dollar-denominated syndicated credit facilities
and (b) the Benchmark Replacement Adjustment; provided that, if the Benchmark Replacement as so determined would be less
than zero, the Benchmark Replacement will be deemed to be zero for the purposes of this Agreement.

    11

     

    

“Benchmark
Replacement Adjustment” means, with respect to any replacement of LIBOR Rate with an Unadjusted Benchmark Replacement
for each applicable Interest Period, (i) the spread adjustment, or method for calculating or determining such spread adjustment,
(which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving
due consideration to any selection or recommendation of a spread adjustment, or method for calculating or determining such spread
adjustment, for the replacement of LIBOR Rate with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental
Body or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating
or determining such spread adjustment, for the replacement of LIBOR Rate with the applicable Unadjusted Benchmark Replacement
for U.S. dollar- denominated syndicated credit facilities at such time.

“Benchmark
Replacement Conforming Changes” means, with respect to any Benchmark Replacement, any technical, administrative
or operational changes (including changes to the definition of “Base Rate,” the definition of “Interest Period,”
timing and frequency of determining rates and making payments of interest and other administrative matters) that the Administrative
Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration
thereof by the Administrative Agent in a manner substantially consistent with market practice (or, if the Administrative Agent
decides that adoption of any portion of such market practice is not administratively feasible or if the Administrative Agent determines
that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as
the Administrative Agent decides is reasonably necessary in connection with the administration of this Agreement).

“Benchmark
Replacement Date” means the earlier to occur of the following events with respect to LIBOR Rate:

(1)          in the case of clause (1) or (2) of the definition of “Benchmark Transition Event,” the later of

(a)
the date of the public statement or publication of information referenced therein and (b) the date on which the administrator
of LIBOR Rate permanently or indefinitely ceases to provide LIBOR Rate; or

(2)          in the case of clause (3) of the definition of “Benchmark Transition Event,” the date of the public statement or publication
of information referenced therein.

    12

     

    

“Benchmark
Transition Event” means the occurrence of one or more of the following events with respect to LIBOR Rate:

 

(1)        a public statement or publication of information by or on behalf of the administrator of LIBOR Rate announcing that such administrator
has ceased or will cease to provide LIBOR Rate, permanently or indefinitely, provided that, at the time of such statement or publication,
there is no successor administrator that will continue to provide LIBOR Rate; 

(2)        a public statement or publication of information by the regulatory supervisor for the administrator of LIBOR Rate, the U.S. Federal
Reserve System, an insolvency official with jurisdiction over the administrator for LIBOR Rate, a resolution authority with jurisdiction
over the administrator for LIBOR Rate or a court or an entity with similar insolvency or resolution authority over the administrator
for LIBOR Rate, which states that the administrator of LIBOR Rate has ceased or will cease to provide LIBOR Rate permanently or
indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will
continue to provide LIBOR Rate; or

(3)         a public statement or publication of information by the regulatory supervisor for the administrator of LIBOR Rate announcing that
LIBOR Rate is no longer representative.

“Benchmark
Transition Start Date” means (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable
Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of
a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information
(or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such
statement or publication) and (b) in the case of an Early Opt-in Election, the date specified by the Administrative Agent or the
Required Lenders, as applicable, by notice to the Borrower, the Administrative Agent (in the case of such notice by the Required
Lenders) and the Lenders.

“Benchmark
Unavailability Period” means, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred
with respect to LIBOR Rate and solely to the extent that LIBOR Rate has not been replaced with a Benchmark Replacement, the period
(x) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced
LIBOR Rate for all purposes hereunder in accordance with the Section titled “Effect of Benchmark Transition Event”
and (y) ending at the time that a Benchmark Replacement has replaced LIBOR Rate for all purposes hereunder pursuant to the Section
titled “Effect of Benchmark Transition Event.”

    13

     

    

 

“Early
Opt-in Election” means the occurrence of:

 

(1)         (i) (a) a determination by the Administrative Agent or (b) a notification by the Required Lenders to the Administrative Agent
(with a copy to the Borrower) that U.S. dollar-denominated syndicated credit facilities being executed at such time, or that include
language similar to that contained in this Section titled “Effect of Benchmark Transition Event,” are being executed
or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace LIBOR Rate; or

 

(ii)
(a) a determination by the Administrative Agent or (b) a notification by the Required Lenders to the Administrative Agent (with
copy to the Borrower) that the existing interbank offered rate benchmark set forth in any non-speculative interest rate swap contract
related to the Loan Documents has been amended pursuant to a final protocol published by, or other amendment promulgated by, the
International Swaps and Derivatives Association, Inc. ("ISDA") to facilitate the replacement of such interbank
offered rate benchmark or if any non-speculative interest rate swap contract related to the Loan Documents is entered into after
the Closing Date and is subject to ISDA definitions amended after the Closing Date that reflect a replacement of the interbank
offered rate benchmark used in this Agreement on the Closing Date; and

 

(2)
(i) the election by the Administrative Agent or (ii) the election by the Required Lenders to declare that an Early Opt-in Election
has occurred and the provision, as applicable, by the Administrative Agent of written notice of such election to the Borrower
and the Lenders or by the Required Lenders of written notice of such election to the Administrative Agent.

 

“Federal
Reserve Bank of New York’s Website” means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org,
or any successor source.

“Relevant
Governmental Body” means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially
endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.

“SOFR”
with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank
of New York, as the administrator of the benchmark, (or a successor administrator) on the Federal Reserve Bank of New York’s
Website.

“Term
SOFR” means the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental
Body.

“Unadjusted
Benchmark Replacement” means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.

 

    14

     

    

(f)
  Conflicting Fallback Language: Notwithstanding anything contained herein to the contrary, if the terms of this Section
conflict with (or result in a different Benchmark Replacement than pursuant to) the IBOR fallback terms published by the International
Swaps and Derivatives Associations, Inc. (“ISDA”) as supplements to the 2006 ISDA definitions (“ISDA
Supplements”), then the ISDA Supplements (and the resulting Benchmark Replacement pursuant thereto) will govern and
control over said terms of this Section (as if the Borrower and the Lender had adhered to the related protocol published by ISDA).”

 

(r)            Section 4.6 of the Agreement is amended by deleting same and substituting the following therefor:

 

Section
4.6    No Material Litigation. Except as set forth on Schedule 4.6, no litigation, investigation or proceeding
of or before any arbitrator or Governmental Authority is pending or, to the knowledge of the Loan Parties, threatened by or against
any Loan Party or any of its Subsidiaries or against any of its or their respective properties or revenues (a) with respect to
any of the Loan Documents and the other transactions contemplated hereby or thereby, or (b) which could, if adversely determined,
reasonably be expected to have a Material Adverse Effect.

 

(s)           A new section, Section 5.3, is hereby added to the Agreement as follows:

 

“5.3
      Additional Conditions to Term Loan. Compliance with all conditions precedent set forth in the Sixth Amendment and Waiver
Amended and Restated Credit Agreement among Agent, Lenders, Borrower and Guarantors.”

 

(t)          Section 6.1(a) of the Agreement is amended by deleting same and substituting the following therefor:

 

“(a)       As
soon as available, but in any event, within ninety (90) days after the end of each fiscal year, or, if earlier, within fifteen
(15) days after the date (without extension) required to be filed with the SEC (except for the fiscal year ended 12/31/19, which
statements shall be delivered within five (5) Business Days of the 2020 Effective Date) audited consolidated financial statements
of Borrower and its Subsidiaries as of the end of such year, fairly presenting Borrower's and its Subsidiaries' financial position,
which statements shall consist of a balance sheet and related statements of income, retained earnings, and cash flow covering
the period of Borrower's immediately preceding fiscal year, and which shall be prepared by Borrower in accordance with GAAP consistently
applied and audited by independent certified public accountants (the “Auditors”) reasonably satisfactory to the Administrative
Agent; such statements shall not be subject to any “going concern” or like qualification or exception or any qualification
or exception as to the scope of such audit. Administrative Agent and the Lenders hereby accept Cohn Reznick LLP, CPAs as the Borrower’s
Auditors. At the same time, Borrower shall deliver to each Lender a covenant compliance certificate certifying that there are
no defaults to the Loan Documents in the form of Exhibit F attached hereto and made a part hereof and otherwise in form and substance
reasonably satisfactory to the Administrative Agent, executed by a Financial Officer of Borrower. All such financial statements
and other documents delivered to each Lender are to be certified as accurate by a Financial Officer of Borrower.”

 

    15

     

    

 

(u)         Section 6.1(b) of the Agreement is amended by deleting same and substituting the following therefor:

 

“(b)         Within
forty-five (45) days of each first, second and third fiscal quarter of each fiscal year, or if earlier, within five (5) days after
the date (without extension) required to be filed with the SEC (except for the fiscal quarters ended 3/31/20, 6/30/20 and 9/30/20,
which quarterly statements shall be delivered by September 30, 2020 (first quarter), November 15, 2020 (second quarter) and December
31, 2020 (third quarter)) consolidated financial statements of Borrower and its Subsidiaries as of the end of such period, fairly
presenting Borrower's and its Subsidiaries' financial position. At the same time, the Borrower shall deliver to the each Lender
a covenant compliance certificate certifying that there are no defaults to the Loan Documents in the form of Exhibit F attached
hereto and made a part hereof and otherwise in form and substance reasonably satisfactory to the Administrative Agent, executed
by a Financial Officer of Borrower. All such reports shall be in such detail as the Administrative Agent shall request and shall
be prepared in accordance with GAAP consistently applied and shall be signed and certified to be correct by the Financial Officer
of Borrower.”

 

(v)           Section 7.1(a) of the Agreement (Minimum Debt Service Coverage Ratio) is amended by deleting same and substituting the following
therefor:

 

“(a)         Minimum
Debt Service Coverage Ratio. Permit the Debt Service Coverage Ratio of the Borrower at the end of each fiscal quarter for
the DSCR Period (defined below) then ended to be less than the corresponding ratio set forth below. “Debt Service Coverage
Ratio” shall mean (i) the sum of EBITDA plus amortization of stock compensation expense, minus Restricted Payments minus
unfinanced Capital Expenditures, divided by (ii) the sum of scheduled principal and Financing Lease payments plus Interest
Expense; in each case as determined in accordance with GAAP consistently applied. “DSCR Period” shall mean
(y) for the fiscal periods ended 9/30/20 and 12/31/20, the fiscal quarter then ended; and (z) for all other fiscal periods, the
trailing four quarter period then ended.

 

	Quarter End	 	Minimum DSCR
	Closing-12/31/17	 	1.5 to 1.0
	3/31/18-6/30/20	 	N/A
	9/30/20-12/31/20	 	1.5 to 1.0
	3/31/21 and thereafter	 	1.25 to 1.0”

 

    16

     

    

 

(w)         Section 7.1(b) of the Agreement (Maximum Leverage Ratio) is amended by deleting same and substituting the following therefor:

 

“(b)          Maximum
Leverage Ratio. Permit the Leverage Ratio of the Borrower at the end of each fiscal quarter for the trailing four quarter
period then ended to be more than the corresponding ratio set forth below (subject to adjustment pursuant to Section 3.4(i));
“Leverage Ratio” shall mean Funded Debt, divided by EBITDA:

 

	Fiscal Quarter End	 	Leverage Ratio	 	Post Offering Leverage Ratio
	6/30/16 and 9/30/16	 	3.5 to 1.0	 	N/A
	12/31/16 thru 12/31/17	 	3.0 to 1.0	 	N/A
	3/31/18-12/31/20	 	N/A	 	N/A
	3/31/21 and thereafter	 	4.0 to 1.0	 	4.0 to 1.0”

  

(x)           Section 7.1(c) of the Agreement (Minimum Net Income) is amended by deleting same and substituting the following therefor:

 

“(c)         Minimum
Net Income. Permit, as of the end of each fiscal quarter commencing 9/30/20, the amount of the Borrower’s net income
after taxes to be less than $1.”

 

(y)           Section 7.1(d) of the Agreement (Minimum EBITDA) is amended by deleting same and substituting the following therefor:

 

“(d)         Minimum
EBITDA. Permit the sum of Borrower’s EBITDA minus any A10 2015 REA Payment received at the end of
each fiscal quarter for the fiscal quarter then-ended to be less than the following:

 

	Fiscal Quarter End	 	Amount:	 
	6/30/16	 	$	2,100,000	 
	9/30/16	 	$	2,400,000	 
	12/31/16	 	$	2,600,000	 
	3/31/17	 	$	2,400,000	 
	6/30/17	 	$	1,800,000	 
	9/30/17	 	$	2,000,000	 
	12/31/17	 	$	2,300,000	 
	3/31/18 – 6/30/20	 	 	N/A	 
	9/30/20 and thereafter	 	 	$1,000,000	”

 

(z)            A new section, Section 7.1(e) is added to Section 7.1 of the Agreement as follows:

 

    17

     

    

 

“(e)          Minimum
Liquidity. Maintain at all times a minimum amount of $3,000,000 in either unrestricted, unencumbered cash (to be maintained
in an account with Collateral Agent) and/or Revolving Credit availability (or any combination thereof).”

 

(aa)          A new section, Section 7.2(h), is added to Section 7.2 of the Agreement as follows:

“(h) Indebtedness
of the Borrower or any Subsidiary under any PPP Loan, provided that (i) Borrower or Subsidiary shall comply with and observe all
of the terms, conditions and provisions of such PPP Loan; (ii) the proceeds of the PPP Loan shall be used only for the purposes
permitted under Section 1102 of the CARES Act; and (iii) Borrower or Subsidiary shall comply with Section 1106 of the CARES Act
to obtain loan forgiveness to the extent provided thereunder.”

 

(bb)         Section 8.1(c) of the Agreement is amended by deleting same and substituting the following therefor:

 

“(c)          The
Borrower or any other Loan Party shall default in the observance or performance of any covenant contained in Article VII, Section
6.1, Section 6.2 or Section 6.7(a) (to the extent relating to notice of an Event of Default) hereof or in any negative covenant
contained in any Security Document to which it is a party.”

 

(cc)           Section 9.10 of the Agreement is amended by deleting same and substituting the following therefor:

 

“9.10
       Secured Cash Management Agreements and Secured Swap Contracts. Except as otherwise expressly set forth herein, no Cash
Management Bank or Swap Provider that obtains the benefit of the provisions of Sections 8.3 or 9.7, or any Collateral by virtue
of the provisions hereof or any Loan Document shall have any right to notice of any action or to consent to, direct or object
to any action hereunder or under any other Loan Document or otherwise in respect of the Collateral (including the release or impairment
of any Collateral) (or to notice of or to consent to any amendment, waiver or modification of the provisions hereof or any Security
Document) other than in its capacity as a Lender and, in such case, only to the extent expressly provided in the Loan Documents.
Notwithstanding any other provision of this Article to the contrary, the Administrative Agent shall not be required to verify
the payment of, or that other satisfactory arrangements have been made with respect to, Secured Obligations arising under Secured
Cash Management Agreements and Secured Swap Contracts except to the extent expressly provided herein and unless the Administrative
Agent has received a Secured Party Designation Notice of such Secured Obligations, together with such supporting documentation
as the Administrative Agent may request, from the applicable Cash Management Bank or Swap Provider, as the case may be. The Administrative
Agent shall not be required to verify the payment of, or that other satisfactory arrangements have been made with respect to,
Secured Obligations arising under Secured Cash Management Agreements and Secured Swap Contracts in the case of a Termination Date.”

 

    18

     

    

 

(dd)       Section 10.1(b) of the Agreement is amended by deleting same and substituting the following therefor:

 

“(b)       If,
in connection with any proposed amendment, waiver or consent requiring the consent of “each Lender” or “each
Lender directly affected thereby,” or the consent of the Required Lenders, and the consent of necessary Lenders is not obtained
(any such Lender whose consent is necessary but not obtained being referred to herein as a “Non-Consenting Lender”),
then the Borrower may elect to replace a Non-Consenting Lender as a Lender party to this Agreement, provided that, concurrently
with such replacement, (i) another bank or other entity which is reasonably satisfactory to the Borrower and the Administrative
Agent shall agree, as of such date, to purchase for cash the Loans and other Obligations due to the Non-Consenting Lender pursuant
to an Assignment and Assumption and to become a Lender for all purposes under this Agreement and to assume all obligations of
the Non-Consenting Lender to be terminated as of such date and to comply with the requirements of Section 10.6(b)(i)(A), and (ii)
the Borrower shall pay to such Non-Consenting Lender in same day funds on the day of such replacement all interest, fees and other
amounts then accrued but unpaid to such Non-Consenting Lender by the Borrower hereunder to and including the date of termination,
including without limitation payments due to such Non-Consenting Lender under Sections 3.6, 3.7, 3.8 and 3.9.”

 

(ee)       Section 10.2 of the Agreement (Notices) is amended and by deleting same and substituting the following therefor:

 

10.2       Notices.
All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by facsimile
transmission) and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made (a) in the case
of delivery by hand, when delivered, (b) in the case of delivery by mail, three days after being deposited in the mails, postage
prepaid, or (c) in the case of delivery by facsimile transmission, when sent and receipt has been confirmed, addressed as follows
in the case of the Borrower and the Administrative Agent, and as set forth in Schedule I in the case of the other parties
hereto, or to such other address as may be hereafter notified in writing by the respective parties hereto:

 

	The Borrower:	CPI Aerostructures, Inc.
	 	91 Heartland Boulevard
	 	Edgewood, New York 11717
	 	Attn: Chief Financial Officer

 

    19

     

    

 

	with a copy to:	Graubard Miller
	 	405 Lexington Avenue
	 	New York, New York 10174
	 	Attn:    David A. Miller, Esq.
	The Administrative Agent and	 
	the Collateral Agent and the	 
	Swap Provider:	BankUnited, N.A.
	 	445 Broadhollow Road
	 	Melville, New York 11747
	 	Attn:    Ms. Christine Gerula
	 	Senior Vice President
	 	 
	with a copy to:	Certilman Balin Adler & Hyman LLP
	 	90 Merrick Avenue
	 	East Meadow, New York 11554
	 	Attn: Kenneth A. Hoffmann, Esq.

 

provided
that any notice, request or demand to or upon any Agent or the Lenders pursuant to Section 2.2, 2.4, 2.6, 2.8 or 3.2 shall
not be effective until received.

 

(ff)          Section 10.7(a) of the Agreement is amended by deleting same and substituting the following therefor:

 

“(a)        
If any Lender (a “Benefited Lender”) shall at any time receive any payment of all or part of its Loans owing to
it by the Borrower, or interest thereon, or receive any collateral in respect thereof (whether voluntarily or involuntarily,
by set-off, pursuant to events or proceedings of the nature referred to in clause (g) of Section 8.1 or otherwise, except for
payments pursuant to the operation of Sections 3.14(b) or 10.6), in a greater proportion than any such payment to or
collateral received by any other Lender, if any, in respect of such other Lender’s Loans owing to it by the Borrower or
interest thereon, such Benefited Lender shall purchase for cash from the other Lenders a participating interest in such
portion of each such other Lender’s Loan owing to it by the Borrower or shall provide such other Lenders with the
benefits of any such collateral, or the proceeds thereof, as shall be necessary to cause such Benefited Lender to share the
excess payment or benefits of such collateral or proceeds ratably with each of the Lenders; provided, however, that if all or
any portion of such excess payment or benefits is thereafter recovered from such Benefited Lender, such purchase shall be
rescinded, and the purchase price and benefits returned, to the extent of such recovery, but without
interest.”

 

(gg)           
Schedule I of the Agreement is hereby amended by deleting same and substituting the attached Schedule I therefor.

 

(hh)           
Schedule 4.6 of the Agreement is hereby amended by deleting same and substituting the attached Schedule 4.6 therefor.

 

    20

     

    

(ii)            Schedule 4.18 of the Agreement is hereby amended by deleting same and substituting the attached Schedule 4.18 therefor.

 

(jj)            Schedule 7.2 of the Agreement is hereby amended by deleting same and substituting the attached Schedule 7.2 therefor.

 

(kk)          Schedule 7.3 of the Agreement is hereby amended by deleting same and substituting the attached Schedule 7.3 therefor.

 

(ll)            Exhibit A-1 is hereby amended by deleting same and substituting the attached Exhibit A-1 therefor.

 

(mm)       
Exhibit A-2 is hereby amended by deleting same and substituting the attached Exhibit A-2 therefor.

 

(nn)         Except as amended herein, all other provisions of the Agreement and the Loan Documents shall remain in full force and effect and
are hereby ratified and confirmed.

 

3.             Each Lender and the Borrower agree that as of August 17, 2020 and prior to the Effective Date (defined below), the aggregate outstanding
principal amount of: (a) the Revolving Credit Loans as evidenced by Revolving Credit Notes is $26,738,684.58, and (b) the Term
Loan as evidenced by the corresponding Term Notes is $1,933,333.32.

 

4.             The Borrower hereby represents and warrants to each Lender after giving effect to this Amendment that:

 

(a)           Each and every of the representations and warranties set forth in the Agreement is true as of the date hereof and with the same
effect as though made on the date hereof, and is hereby incorporated herein in full by reference as if fully restated herein in
its entirety; provided, however, that (i) the September 30, 2015 date in Section 4.1 shall be deemed to be December 31, 2019,
(ii) the September 30, 2015 date in Section 4.2 shall be June 30, 2020 and (iii) with respect to the representation in Section
4.2, the Restatement is an event which has or which has had or would reasonably be expected to have a Material Adverse Effect.

 

(b)           No Default or Event of Default and no event or condition which, with the giving of notice or lapse of time or both, would constitute
such a Default or Event of Default, now exists or would exist after giving effect hereto.

 

(c)           There are no defenses or offsets to the Borrower’s obligations under the Agreement, the Notes or the Loan Documents or any
of the other agreements in favor of the Lender referred to in the Agreement.

 

(d)           The WHEREAS clauses set forth hereinabove are true and correct.

 

    21

     

    

 

5.             Non-compliance by the Borrower with the following covenant(s), for the following fiscal period(s) ended on the date(s) set forth
below, is hereby waived by the Agent and each Lender, solely to the extent and subject to the facts and terms and for the period(s)
set forth below:

 

(a)       Section
6.1(a) of the Credit Agreement: Borrower’s late submission of its annual financial statement and non-compliance with this
Section is waived to the extent that Borrower timely complies with Section 6.1(a) as amended herein.

 

(b)       Section
6.1(b) of the Credit Agreement: Borrower’s late submission of its quarterly financial statements and non-compliance with
this Section is waived to the extent that Borrower timely complies with Section 6.1(b) as amended herein.

 

(c)       Sections
6.1(a) and 6.1(b) of the Credit Agreement: The late and inaccurate quarterly and annual financial statements for 2018 and
2019 required to be delivered under Sections 6.1(a) and 6.1(b) which are subject to the Restatement are waived, provided the Agent
receives such statements upon Restatement by the dates set forth in Section 6.1(a) and 6.1(b) (each as amended herein) respectively.

 

(d)       Section
7.1(a) of the Credit Agreement Minimum Debt Service Coverage Ratio: Borrower’s non-compliance with this Section is
waived for each fiscal quarter ended during the period from 3/31/18-12/31/19.

 

(e)       Section
7.1(b) of the Credit Agreement Maximum Leverage Ratio: Borrower’s non-compliance with this Section is waived for
each quarter ended during the period from 3/31/18-12/31/19.

 

(f)        Section
7.1(c) of the Credit Agreement Minimum Net Income: Borrower’s non-compliance with this Section is waived for each
quarter ended during the period from 3/31/18-12/31/19.

 

(g)       Section
7.1(d) of the Credit Agreement Minimum EBITDA: Borrower’s non-compliance with this Section is waived for each fiscal
quarter ended during the period from 3/31/18-12/31/19.

 

(h)       Section
7.2 of the Credit Agreement Limitation on Indebtedness: Borrower’s incurrence of the PPP Loan is hereby consented to and
Borrower’s non-compliance with this Section in respect of the incurrence of the PPP Loan is hereby waived provided Borrower
complies with Section 7.2 as amended herein.

 

6.             It is expressly understood and agreed that the financial covenants set forth in Section 7.1 (inclusive) are not being tested by
the Administrative Agent and the Lenders for the fiscal periods ended 3/31/20 and 6/30/20.

 

7.             It is expressly understood and agreed that all collateral security for the Loans and other extensions of credit set forth in the
Agreement prior to the amendment provided for herein is and shall continue to be collateral security for the Loans, obligations
and other extensions of credit provided in the Agreement (as herein amended) and the Loan Documents. Without limiting the generality
of the foregoing, the Borrower hereby absolutely and unconditionally confirms that each Loan Document, document and instrument
executed by the Borrower pursuant to the Agreement continues in full force and effect, is ratified and confirmed and is and shall
continue to be applicable to the Agreement (as herein amended).

 

    22

     

    

 

8.             The amendments and waivers set forth herein are limited precisely as written, based on the facts specified, for the periods stated
and shall not be deemed to (a) be a consent to or a waiver of, or future waiver of any further violation or non-compliance with
any of the indicated covenants or any other term or condition of the Agreement, the Loan Documents or any of the documents referred
to therein, or (b) prejudice any right or rights which the Lender may now have or may have in the future under or in connection
with the Agreement, the Loan Documents or any documents referred to therein. Whenever the Agreement is referred to in the Amendment,
the Loan Documents or any of the instruments, agreements or other documents or papers executed and delivered in connection therewith,
it shall be deemed to mean the Agreement as modified by this Amendment.

 

9.             The Borrower agrees to pay on demand, and the Agent may charge any deposit or loan account(s) of the Borrower, all expenses (including
reasonable attorney’s fees) incurred by the Lender in connection with the negotiation and preparation of the Agreement as
amended hereby.

 

10.           This Amendment shall become effective on such date as all of the following conditions shall be satisfied retroactive to the date
hereof (the “Effective Date”):

 

(a)          Loan Documents. The Administrative Agent shall have received four (4) original counterparts of this Amendment (inclusive
of all exhibits, and attachments), executed and delivered by a duly authorized officer of the Borrower and the Guarantors, with
a counterpart or a conformed copy for each Lender, together with an executed original of the Amended and Restated Term Note and
the Amended and Restated Revolving Credit Note in favor of each Lender.

 

(b)          Loan Conversion. As of the Effective Date, Borrower shall have (i) converted $6,000,000 of outstanding indebtedness under
the Revolving Credit Commitment to be added to the existing Term Commitment, (ii) permanently reduced the Aggregate Revolving
Credit Maximum Amount by such $6,000,000 amount and (iii) consolidated such $6,000,000 amount with the outstanding principal amount
under the existing Term Notes to form new, consolidated, restated, and increased Term Notes for such amount without novation,
such increase to be allocated between the Lenders in proportion to their respective Term Commitments. The Administrative Agent
and the Lenders waive the requirement under Section 2.4 of the Credit Agreement of prior notice of such reduction.

 

(c)          Effective Date Certificate. The Administrative Agent shall have received, with a copy for each Lender, a certificate of
each of the Borrower and the other Loan Parties, dated the Effective Date, substantially in the form of Exhibit E to the
Agreement, with appropriate insertions and attachments satisfactory in form and substance to the Administrative Agent, executed
by the President (or other authorized officer) of the Borrower or the relevant Loan Party, as applicable.

 

    23

     

    

 

(d)          Corporate Proceedings of the Borrower and the Guarantors. The Administrative Agent shall have received, with a counterpart
for each Lender, a copy of the resolutions, in form and substance satisfactory to the Administrative Agent, of the Board of Directors
of the Borrower and the Guarantors authorizing the execution, delivery and performance of this Amendment, certified by the Secretary
or an Assistant Secretary as of the Effective Date, which certificate shall be in form and substance satisfactory to the Administrative
Agent and shall state that the resolutions thereby certified have not been amended, modified, revoked or rescinded.

 

(e)          Officers’ Certificate of the Borrower. The Administrative Agent shall have received, with a counterpart for each
Lender, a certificate of the Borrower dated as of the Effective Date, as to the incumbency and signature of the officers of the
Borrower executing any Loan Document satisfactory in form and substance to the Administrative Agent, executed by the President
or any Vice President and the Secretary or any Assistant Secretary of the Borrower.

 

(f)           Officers’ Certificate of Guarantors. The Administrative Agent shall have received, with a counterpart for each Lender,
a certificate of each Guarantor, dated the Effective Date, as to the incumbency and signature of the officers of such Guarantor,
satisfactory in form and substance to the Administrative Agent, executed by the President or any Vice President and the Secretary
or any Assistant Secretary of each such Guarantor.

 

(g)          Fees. The Lenders shall have received the amendment fee due to Lenders (pro rata) in the aggregate amount of $80,000.00
together with all invoiced fees, costs, expenses and compensation required to be paid on the Effective Date (including any fees
payable under this Amendment, any fee letter with the Lenders, any fee letter with the Agent and the reasonable fees, disbursements
and other charges of legal counsel to the Arranger, the Agent and the Lenders and expenses of appraisers, consultants and other
advisors to the Arranger, the Agent and the Lenders and who have been approved by the Borrower).

 

(h)          Legal Opinion. The Administrative Agent shall have received, with a counterpart for each Lender, the executed legal opinion
of Graubard Miller, counsel to the Borrower and the other Loan Parties, substantially in the form of Exhibit E to the Agreement
and otherwise acceptable to Administrative Agent.

 

(i)           Actions to Perfect Liens. The Administrative Agent shall have received evidence in form and substance satisfactory to it
that all filings, recordings, registrations and other actions, including, without limitation, the filing of duly executed financing
statements on form UCC-1 or UCC-3 as necessary or, in the opinion of the Administrative Agent, desirable to perfect or continue
the Liens created by the Security Documents shall have been completed or shall continue to be in full force and effect.

 

(j)           Lien Searches. The Administrative Agent shall have received the results of a recent search by a Person satisfactory to
the Administrative Agent of the Uniform Commercial Code filings which may have been filed with respect to personal property of
each Loan Party and each patent, trademark or copyright recorded with the United States Patent and Trademark Office or the United
States Copyright Office, as applicable, and such search shall reveal no material liens on any of the assets of such Loan Party
except for liens created by the Security Documents or Liens permitted by the Loan Documents.

 

    24

     

    

 

(k)          Consents, Licenses and Approvals. All governmental and material third party approvals necessary in connection with the
execution, delivery and performance of the Loan Documents shall have been obtained and be in full force and effect or shall continue
to be in full force and effect.

(l)           Litigation. Except as set forth on Schedule 4.6 of the Agreement as amended hereby, there shall be no litigation or administrative
proceeding or proposed or pending regulatory changes in law or regulations applicable to the Borrower or its Subsidiaries, which,
if adversely determined, could reasonably be expected to have a Material Adverse Effect or a material adverse effect on the ability
of the parties to consummate the execution, delivery and performance of the Loan Documents and the Borrowings hereunder.

 

(m)         Indebtedness. As of the Effective Date, the Borrower and its Subsidiaries shall not have outstanding Indebtedness for borrowed
money or preferred stock other than (i) Indebtedness under the Loan Documents, (ii) Indebtedness permitted under the Agreement,
and (iii) Indebtedness as set forth on Schedule 7.2.

 

(n)          Proforma Financial Statement. Prior to the Effective Date, the Administrative Agent shall have received a proforma draft
of the financial information required under Section 6.1(a) of the Agreement for the fiscal year ended 12/31/19, which shall be
identical to the statement filed with the SEC promptly after the date of this Amendment, and which shall be satisfactory in all
respects to the Administrative Agent.

 

(o)          Documentation. The Lenders have received such other legal opinions, corporate documents and other instruments and/or certificates
as they may reasonably request.

 

(p)          Material Adverse Effect. Since June 30, 2020, there has been no development or event which has had or would reasonably
be expected to have a Material Adverse Effect, except for the Restatements.

 

(q)          Execution by Lenders. The Amendment shall have been executed and delivered by each Lender hereunder.

 

11.           This Amendment is dated as of the date set forth in the first paragraph hereof and shall be effective (after satisfaction of the
conditions set forth in paragraph 10 above) on the date of execution by the Agent and the Lenders, retroactive to such date.

 

12.           This Amendment may be executed in counterparts, each of which shall constitute an original, and each of which taken together shall
constitute one and the same agreement.

 

[NO
FURTHER TEXT ON THIS PAGE]

 

    25

     

    

SIGNATURE
PAGE

Sixth
Amendment and Waiver to Amended and Restated Credit Agreement

 

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

 

	 	CPI AEROSTRUCTURES, INC.,	 
	 	as Borrower	 
	 	 	 	 
	 	By: 	/s/ Douglas
    McCrosson	 
	 	Name: Douglas McCrosson	 
	 	Title: Chief Executive Officer	 
	 	 	 	 
	 	BANKUNITED, N.A.,	 
	 	as Arranger, Agent, and a Lender	 
	 	 	 	 
	 	By: 	/s/ Christine
    Gerula	 
	 	Name: Christine Gerula	 
	 	Title: Senior Vice President	 
	 	 	 	 
	 	BANKUNITED, N.A.,	 
	 	as Administrative Agent and Collateral
    Agent	 
	 	 	 	 
	 	By: 	/s/ Christine
    Gerula	 
	 	Name: Christine Gerula	 
	 	Title: Senior Vice President	 
	 	 	 	 
	 	BNB BANK,	 
	 	as a Lender	 
	 	 	 	 
	 	By: 	/s/ JoAnn
    Bello	 
	 	Name: JoAnn Bello	 
	 	Title: Senior Vice President	 

 

    26

     

    

Each
of the Guarantors indicated below hereby consent to this Amendment and acknowledge its continuing liability under its respective
Guaranty with respect to the Agreement, as amended hereby, including (without limitation) the Loan Documents executed in connection
with the Obligations, and all other documents, instruments and agreements executed pursuant thereto or in connection therewith,
without offset, defense of counterclaim) any such offset, defense or counterclaim as may exist being hereby irrevocably waived
by each Guarantor.

 

	 	GUARANTORS:	 
	 	WELDING METALLURGY, INC.	 
	 	 	 	 
	 	By: 	/s/ Douglas
    McCrosson	 
	 	Name: Douglas McCrosson	 
	 	Title: Chief Executive Officer	 
	 	 	 	 
	 	COMPAC DEVELOPMENT	 
	 	CORPORATION	 
	 	 	 	 
	 	By: 	/s/ Douglas
    McCrosson	 
	 	Name: Douglas McCrosson	 
	 	Title: Chief Executive Officer	 

 

    27

     

    

SCHEDULE
I

 

Commitments

 

	Lender	 	Revolving Credit Commitment (%)	 	 	Term Commitment (%)	 
	 	 	 	 	 	 	 	 
	1.	BankUnited, N.A.	 	$	15,000,000	 	 	$	4,958,333.32	 
	 	14817 Oak Lane	 	 	(62.5	%)	 	 	(62.5	%)
	 	Miami Lakes, FL 33016	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	2.	BNB Bank	 	$	9,000,000	 	 	$	2,975,000.00	 
	 	898 Veterans Memorial Highway	 	 	(37.5	%)	 	 	(37.5	%)
	 	Hauppauge, New York 11788	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 	Total:	 	$	24,000,000	 	 	$	7,933,333.32	 

 

    28

     

    

 

EXHIBIT
A-1

[Form
of Term Note]

 

AMENDED
                                         AND RESTATED TERM NOTE

 

	$_______________	_____________, 2020

 

FOR
VALUE RECEIVED, on the applicable Term Loan Maturity Date (as defined in the Agreement), CPI AEROSTRUCTURES, INC., a New York
corporation, having its principal place of business at 91 Heartland Boulevard, Edgewood, New York 11717 (“Borrower”),
promises to pay to the order of _______________ or its registered assigns (“Bank”), at its offices located
at _____________________, the aggregate unpaid principal amount of the Term Loan made by the Bank to the Borrower pursuant to
Section 2.6 of the Agreement (as hereafter defined), payable in consecutive monthly principal installments, each in the amount
set forth in Section 2.7 of the Agreement, such installments to be due and payable as set forth in Section 2.7 of the Agreement.
The Borrower further promises to pay interest at said office in like money on the unpaid principal balance of this Note from time
to time outstanding at the annual rate described in Section 2.6 of the Agreement. Interest shall be payable as provided in the
Agreement. After the stated or accelerated maturity hereof, this Term Note shall bear interest at a rate as set forth in the Agreement,
payable on demand, but in no event in excess of the maximum rate of interest permitted under any applicable law.

 

The
Borrower shall make payment to the Bank at the Bank’s address above or such other place as Bank may from time to time specify
in writing in lawful currency of the United States of America in immediately available funds, not later than 12:00 noon, New York
City time on the date when due, without counterclaim or setoff and free and clear of, and without any deduction or withholding
for, any taxes or other payments. The Borrower authorizes the Bank to charge its deposit account maintained at the Bank for any
payment due under this Term Note on the due date thereof. Except as provided in the definition of “Interest Period”
in the Agreement, if any payment on this Term Note becomes due and payable on a day which is not a Business Day, the maturity
thereof shall be extended to the next succeeding Business Day and interest thereon shall be payable during such extension.

 

This
Term Note is one of the Term Notes referred to in that certain Amended and Restated Credit Agreement, dated as of March 24, 2016,
among the Borrower, the Lenders from time to time parties thereto and the Agent, as Administrative Agent and Collateral Agent
(as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Agreement”),
is entitled to the benefits thereof, and is subject to prepayment and its maturity is subject to acceleration upon the terms contained
in said Agreement. This Term Note is secured by the collateral described in the Agreement. All capitalized terms used in this
Term Note and not defined herein shall have the meanings given them in the Agreement.

 

Upon
the occurrence of any one or more of the Events of Default specified in the Agreement, all amounts then remaining unpaid on this
Term Note may be declared to be immediately due and payable as provided in the Agreement.

 

    29

     

    

 

If
any action or proceeding be commenced to collect this Term Note or enforce any of its provisions, Borrower further agrees to pay
all costs and expenses of such action or proceeding and attorneys' fees and expenses and further expressly waives any and every
right to interpose any counterclaim in any such action or proceeding. Borrower hereby submits to the general jurisdiction of the
courts of the State of New York, the courts of the United States of America for the Southern District of New York, and appellate
courts from any thereof, and agrees with Bank that personal jurisdiction over Borrower shall rest with courts of the State of
New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof
for purposes of any action on or related to this Term Note, the liabilities, or the enforcement of either or all of the same.
Borrower hereby waives personal service by manual delivery and agrees that service of process may be made by post-paid certified
mail directed to the Borrower at the Borrower's address set forth above or at such other address as may be designated in writing
by the Borrower to Bank in accordance with Section 10.2 of the Agreement, and that upon mailing of such process such service be
effective with the same effect as though personally served. Borrower hereby expressly waives any and every right to a trial by
jury in any action on or related to this Term Note, the liabilities or the enforcement of either or all of the same.

 

This
Term Note may, upon execution, be delivered by facsimile or electronic mail, which shall be deemed for all purposes to be an original
signature.

 

Borrower
and all endorsers and guarantors hereof waive presentment and demand for payment, notice of non-payment, protest, and notice of
protest. This Term Note shall be construed in accordance with and governed by the laws of the State of New York.

 

[NO
FURTHER TEXT ON THIS PAGE]

 

    30

     

    

 

This
Term Note (together with the other Term Notes) is being executed and delivered as an amendment and increase to and restatement
of the outstanding indebtedness evidenced by those certain prior term notes by Borrower and payable to the Lenders (the “Existing
Term Notes”). No Term Note shall constitute a cancellation or novation with respect to the indebtedness evidenced by
any Existing Term Note. Such indebtedness (as heretofore evidenced by the Existing Term Notes and as hereafter evidenced by the
Term Notes) shall continue without interruption in the lien or priority thereof. Subject to the foregoing provisions, the Term
Notes amend, restate and supersede the Existing Term Notes in their entirety.

 

	 	CPI AEROSTRUCTURES, INC.
	 	 	 
	 	By:		 
	 	Name:
	 	Title:
	 	 

    31

     

    

EXHIBIT
A-2

[Form
of Revolving Credit Note]

 

AMENDED
AND RESTATED REVOLVING CREDIT NOTE

 

	$_______________	_____________, 2020

 

CPI
AEROSTRUCTURES, INC., a New York corporation (the “Borrower”), for value received, hereby promises to pay to
the order of ____________________ or its registered assigns (the “Bank”) at the office of the Bank located
at ______________ on the Revolving Credit Termination Date as such term is defined in the Amended and Restated Credit Agreement
dated as of March 24, 2016, among the Borrower, the Lenders from time to time parties thereto and the Agent, as Administrative
Agent and Collateral Agent (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the
“Agreement”; terms defined in the Agreement shall have their defined meanings when used in this Note), in lawful
money of the United States of America and in immediately available funds the principal amount of _______________________________________________AND
__/100 ($______________) DOLLARS or, if less than such principal amount, the aggregate unpaid principal amount of all Revolving
Credit Loans made by the Bank to the Borrower pursuant to Section 2.1 of the Agreement. The Borrower further promises to pay interest
at said office in like money on the unpaid principal balance of this Note from time to time outstanding at an annual rate as selected
by the Borrower pursuant to the terms of Section 2.1 of the Agreement. Interest shall be computed on the basis of a 360-day year
for actual days elapsed and shall be payable as provided in the Agreement. All Loans made by the Bank pursuant to Section 2.1
of the Agreement and payments of the principal thereon may be endorsed by the holder of this Note on the schedule annexed hereto,
to which the holder may add additional pages. The aggregate net unpaid amount of Revolving Credit Loans set forth in such schedule
shall be presumed to be the principal balance hereof. After the stated or any accelerated maturity hereof, this Note shall bear
interest at a rate as set forth in the Agreement, payable on demand, but in no event in excess of the maximum rate of interest
permitted under applicable law.

 

This
Note is one of the Revolving Credit Notes referred to in the Agreement, is entitled to the benefits thereof, is secured by the
Collateral and may be prepaid, and is required to be prepaid, in whole or in part as provided in the Agreement.

 

Upon
the occurrence of any one or more of the Events of Default specified in the Agreement, all amounts then remaining unpaid on this
Note may be declared to be immediately due and payable as provided in the Agreement.

 

This
Note may, upon execution, be delivered by facsimile or electronic mail, which shall be deemed for all purposes to be an original
signature.

 

This
Note shall be construed in accordance with and governed by the laws of the State of New York.

 

    32

     

    

 

This
Revolving Credit Note (together with the other Revolving Credit Notes) is being executed and delivered as an amendment and reduction
to and restatement of the outstanding indebtedness evidenced by those certain prior revolving credit notes by Borrower and payable
to the Lenders (the “Existing RC Notes”). No Revolving Credit Note shall constitute a cancellation or novation
with respect to the indebtedness evidenced by any Existing RC Note. Such indebtedness (as heretofore evidenced by the Existing
RC Notes and as hereafter evidenced by the Revolving Credit Notes) shall continue without interruption in the lien or priority
thereof. Subject to the foregoing provisions, the Revolving Credit Notes amend, restate and supersede the Existing RC Notes in
their entirety.

 

	 	CPI AEROSTRUCTURES, INC.
	 	 	 
	 	By:		 
	 	Name:
	 	Title:

 

    33

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