Document:

trtx-ex1019_166.htm

 

 

 

Exhibit 10.19

Execution Version

 

Amended and Restated GUARANTY

AMENDED AND RESTATED GUARANTY (as amended, modified, restated and/or supplemented from time to time, this “Guaranty”), dated as of May 4, 2018, made by TPG RE FINANCE TRUST HOLDCO, LLC, a Delaware limited liability company (the “Guarantor”) in favor of BANK OF AMERICA, N.A. (“Bank of America”), as Administrative Agent (in such capacity, together with any successor administrative agent, the “Administrative Agent”) for the benefit of the Secured Parties (as defined in the Credit Agreement referred to below).  

W I T N E S S E T H:

WHEREAS, TPG RE Finance 20, Ltd., an exempted company incorporated under the laws of the Cayman Islands with limited liability (the “Borrower”), TPG RE Finance Pledgor 20, LLC, a Delaware limited liability company (the “Pledgor”), the lenders from time to time party thereto (the “Lenders”) and Bank of America, as Administrative Agent, have entered into a Credit Agreement, dated as of  September 29, 2017 (as it may be amended, modified, restated, amended and restated, extended, supplemented or otherwise modified from time to time after the date hereof, the “Credit Agreement”), providing for the making of Loans to the Borrower as contemplated therein.

WHEREAS, the Borrower and the Pledgor are each a direct or an indirect Subsidiary of the Guarantor.

WHEREAS, in connection with entering into the Credit Agreement, the Guarantor executed and delivered that certain Guaranty, dated as of September 29, 2017 (the “Existing Guaranty”) in favor of the Administrative Agent.

WHEREAS, the Guarantor desires to execute this Guaranty to amend and restate the Existing Guaranty to, among other things, amend the financial covenants and reporting requirements set forth in the Existing Guaranty.

NOW, THEREFORE, in consideration of the foregoing premises, the Guarantor and the Administrative Agent, for the benefit of the Secured Parties, hereby agree that the Existing Guaranty is amended and restated in its entirety as follows:

1.Definitions.  All capitalized terms used herein and not otherwise defined herein shall have the meanings specified in the Credit Agreement.  The following capitalized terms used herein shall have the definitions specified below:

“Cash Equivalents” means, as of any date of determination:

(i)insured certificates of deposit (with a maturity of three hundred and sixty (360) days or less) issued by, or savings accounts with, any commercial bank that (a) is organized under the laws of the United States, any state thereof or the District of Columbia or is the principal banking subsidiary of a bank holding company organized under the laws of the United States, any state thereof or the District of Columbia, and is a 

 

 

member of the Federal Reserve System, (b) issues (or the parent of which issues) commercial paper rated at least P-1 (or the then equivalent grade) by Moody’s or at least “A-1” (or the then equivalent grade) by S&P, and (c) has combined capital and surplus of at least $250,000,000;

(ii)marketable direct obligations issued by, or unconditionally guaranteed by, the United States Government or issued by any agency or instrumentality thereof and backed by the full faith and credit of the United States of America, in each case maturing within one year from the date of acquisition thereof;

(iii)marketable direct obligations issued by any State of the United States of America or any political subdivision of any such State or any public instrumentality thereof maturing within one year from the date of acquisition thereof and, at the time of acquisition, having a rating of at least A-2 from S&P or at least P-2 from Moody’s;

(iv)commercial paper maturing no more than one year from the date of creation thereof and, at the time of acquisition, having a rating of at least A-2 from S&P or at least P-2 from Moody’s;

(v)time deposits, demand deposits, Eurodollar time deposits, time deposit accounts, term deposit accounts or bankers’ acceptances maturing within one year from the date of acquisition thereof or overnight bank deposits, in each case, issued by any bank organized under the laws of the United States of America or any State thereof or the District of Columbia or any U.S. branch of a foreign bank having at the date of acquisition thereof combined capital and surplus of not less than $500.00 million; 

(vi)investments in money market funds which invest substantially all their assets in securities of the types described in clauses (ii) through (v) above; and

(vii)fifty percent (50%) of the par value of the pass-through certificates representing beneficial ownership interests in one or more first lien mortgage loans secured by commercial and/or multifamily properties rated AAA or the equivalent by each nationally recognized statistical rating organization that provides a rating to such certificates.

“Customary Recourse Exceptions” means, with respect to any Non-Recourse Indebtedness, exclusions from the exculpation provisions with respect to such Non-Recourse Indebtedness such as fraud, misapplication of cash, voluntary bankruptcy, environmental claims, breach of representations and warranties, failure to pay taxes and insurance, as applicable, and other circumstances customarily excluded by institutional lenders from exculpation provisions and/or included in separate indemnification agreements in non-recourse financings of commercial real estate.

“EBITDA” means, for any period, an amount equal to Net Income for such period, plus the sum of (a) the amount of depreciation and amortization expense deducted in determining Net Income for such period, (b) the amount of Interest Expense deducted in determining Net Income for such period, (c) income tax expense deducted in determining 

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Net Income for such period, and (d) the amount of any extraordinary or non-recurring items reducing Net Income for such period, all as determined in accordance with GAAP.

“Facility Termination Date” means the date upon which all of the Commitments have been terminated, no Note under the Credit Agreement is unpaid, all Loans have been paid in full, and all other Obligations (other than contingent indemnification obligations that survive termination of the Loan Documents for which no claim has been made) have been paid in full.

 “Interest Expense” means, for any period, the amount of total interest expense incurred by the Guarantor and its consolidated Subsidiaries during such period.

“Liquidity” means, for any Person, Unrestricted Cash and Unrestricted Cash Equivalents. 

“Net Income” means, for any period, with respect to the Guarantor and its consolidated Subsidiaries, the consolidated net income (or loss) for such period as reported in the Guarantor’s financial statements prepared in accordance with GAAP.

“Non-Recourse Indebtedness” means Indebtedness that is not Recourse Indebtedness.

“Recourse Indebtedness” means, with respect to any Person, for any period, without duplication, the aggregate Indebtedness in respect of which such Person is subject to recourse for payment, whether as a borrower, guarantor or otherwise; provided, that Indebtedness arising pursuant to Customary Recourse Exceptions shall not constitute Recourse Indebtedness until such time (if any) as demand has been made for the payment or performance of such Indebtedness or the conditions to triggering such recourse under the related agreement have occurred.

“Tangible Net Worth” means, with respect to any Person, as of any date of determination, on a consolidated basis, (a) the total tangible assets of such Person, less (b) the total liabilities of such Person, in each case, on or as of such date and as determined in accordance with GAAP.

“Total Equity” means, with respect to any Person, as of any date of determination, the sum of all shareholder equity of such Person and its Subsidiaries on a consolidated basis, as determined in accordance with GAAP.

“Total Indebtedness” means, with respect to any Person, as of any date of determination (without duplication), the then aggregate outstanding amount of all Indebtedness of such Person on a consolidated basis, as determined in accordance with GAAP.

“Unrestricted Cash and Unrestricted Cash Equivalents” shall mean, on any date, with respect to any Person and its Subsidiaries on a consolidated basis, (i) cash and Cash Equivalents (other than prepaid rents and security deposits made under tenant leases) held by such Person or any of its Subsidiaries that are not subject to any Lien (excluding 

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statutory liens in favor of any depository bank where such cash is maintained), minus (ii) amounts included in the foregoing clause (i) that are with an entity other than such Person or any of its Subsidiaries as deposits or security for contractual obligations.

2.Guaranty.  

(a)Subject to Section 2(b) below, the Guarantor hereby absolutely, unconditionally and irrevocably guarantees the full and prompt payment when due, whether at stated maturity, by required prepayment, upon acceleration, demand or otherwise, and at all times thereafter, of all of the Obligations (the “Guaranteed Obligations”). This Guaranty is a guaranty of payment and performance and is not merely a guaranty of collection.   

(b)Notwithstanding anything in this Guaranty or in any Loan Document to the contrary, but subject to Section 2(c) and Section 2(d) below, the maximum liability of the Guarantor at any time under Section 2(a) shall in no event exceed twenty-five percent (25%) of the Total Outstandings at such time (the “Liability Cap”).

(c)Notwithstanding the foregoing, the limitation on recourse liability as set forth in Section 2(b) above SHALL BECOME NULL AND VOID and shall be of no further force and effect and the Guaranteed Obligations immediately shall become fully recourse to the Guarantor in the event of any of the following:

	
 
	
(i)
	
any Loan Party institutes or consents to the institution of any proceeding under any Insolvency Law, or makes an assignment for the benefit of creditors; or any Loan Party applies for or consents to the appointment of any receiver, trustee, custodian, conservator, liquidator, provisional liquidator, rehabilitator or similar officer for it or for all or any material part of its property;

	
 
	
(ii)
	
a Default occurs under Section 9.01(f)(ii) of the Credit Agreement with respect to any Loan Party in connection with which either (A) the Guarantor or any Affiliate of the Guarantor has or have colluded in any way with the creditors commencing or filing such insolvency proceeding, or (B) the Guarantor, any Affiliate of the Guarantor or any representative of any of the foregoing files an answer consenting to, or otherwise acquiescing in, or joining in, such involuntary insolvency proceeding; or the Guarantor or any Affiliate of the Guarantor (x) consents to, or acquiesces in, or joins in, an application for the appointment of a custodian, receiver, liquidator, trustee or examiner for the Borrower or the Guarantor, or (y) makes an assignment for the benefit of creditors; or 

	
 
	
(iii)
	
any breach of Section 7.14 of the Credit Agreement that substantially contributes to the substantive consolidation of any of the assets and/or liabilities of the Borrower with the assets and/or liabilities of any other entity in any proceeding under any Insolvency Law.

(d)In addition to the foregoing and notwithstanding the limitation on recourse liability set forth in Section 2(b) above, the Guarantor shall be liable for any out-of-pocket 

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losses, costs, claims, expenses or other liabilities incurred by any Indemnitee (excluding consequential, special or punitive damages) resulting from or attributable to the following items (and not due to such Indemnitee’s gross negligence, bad faith or willful misconduct):

	
 
	
(i)
	
any breach of Section 7.14 of the Credit Agreement;

	
 
	
(ii)
	
fraud by a Loan Party in connection with a Pledged Asset, the making or disbursement of any Loan, or any certificates or documents provided in connection therewith;

	
 
	
(iii)
	
intentional and material misrepresentation or breach of warranty by the Borrower in connection with a Pledged Asset, the making or disbursement of any Loan, or any certificates or documents provided in connection therewith;

	
 
	
(iv)
	
intentional breach of any Loan Document;

	
 
	
(v)
	
any distribution of Income or any other asset in contravention of the Loan Documents; 

	
 
	
(vi)
	
the misapplication by the Borrower of any Insurance Proceeds or Condemnation Awards attributable to any property securing a Pledged Asset which, under the terms thereof, should have been applied otherwise;

	
 
	
(vii)
	
breach by the Borrower of any covenant in the Loan Documents relating to the Borrower’s status as a single purpose entity that results in substantive consolidation of the Borrower’s assets with those of another Person in a bankruptcy or insolvency proceeding; 

	
 
	
(viii)
	
any transfer of or creation of a lien on (i) all or any part of any Collateral or (ii) any direct or indirect ownership interest in the Borrower, in each case in violation of the terms of the Loan Documents;

	
 
	
(ix)
	
a judicial or nonjudicial forfeiture or seizure proceeding is commenced by a Governmental Authority and remains pending with respect to the property, or any part thereof, securing a Pledged Asset, on the grounds that such property or any part thereof had been used to commit or facilitate the commission of a criminal offense by any Person, including any tenant, pursuant to any Law, including under the Controlled Substances Act or the Civil Asset Forfeiture Reform Act, regardless of whether or not such property or the Mortgage securing the related Pledged Asset shall become subject to forfeiture or seizure in connection therewith;

	
 
	
(x)
	
any acts of the Borrower or any Guarantor taken in bad faith with the intent to hinder, delay or interfere with the exercise by any Secured Party of any rights and remedies under the Loan Documents after the occurrence of and during the continuance of an Event of Default; or

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(xi)
	
(x)any acts of the Borrower or any Guarantor taken in bad faith with the intent to hinder, delay or interfere with the enforcement of or preservation of the Administrative Agent’s or any Lender’s rights with respect to the Obligations and/or under any of the Loan Documents, including all attorneys’ fees and expenses, investigation costs, and all court costs, whether or not suit is filed hereon, or whether at maturity or by acceleration, or whether before or after maturity, or whether in connection with bankruptcy, insolvency or appeal, or whether in connection with the collection and enforcement with respect to the Obligations and/or under any of the Loan Documents.

3.No Setoff or Deductions; Taxes; Payments.  All payments by the Guarantor hereunder shall be made in accordance with, and subject to the provisions of, Section 3.01 of the Credit Agreement.  The obligations of the Guarantor under this paragraph shall survive the payment in full of the Guaranteed Obligations and termination of this Guaranty for so long as the Borrower’s obligations under Section 3.01 of the Credit Agreement survive the Facility Termination Date.  At the Administrative Agent’s option, all payments under this Guaranty shall be made in the United States.  The obligations hereunder shall not be affected by any acts of any legislative body or governmental authority affecting the Borrower, including but not limited to, any restrictions on the conversion of currency or repatriation or control of funds or any total or partial expropriation of the Borrower’s property, or by economic, political, regulatory or other events in the countries where the Borrower is located.

4.Rights of Secured Parties.  The Guarantor consents and agrees that the Secured Parties may, at any time and from time to time, without notice or demand to or consent of the Guarantor, and without affecting the enforceability or continuing effectiveness hereof:  (a) amend, extend, renew, compromise, discharge, accelerate or otherwise change the times for payment or the terms of the Guaranteed Obligations or any part thereof subject to and in accordance with the terms of the Loan Documents; (b) take, hold, exchange, enforce, waive, release, fail to perfect, sell, impair, or otherwise dispose of any security, or any Lien granted, for the payment of any Guaranteed Obligations; (c) apply such security and direct the order or manner of sale thereof as provided in the Loan Documents; and (d) release or substitute any one or more of any endorsers or other guarantors of any of the Guaranteed Obligations.  Without limiting the generality of the foregoing, the Guarantor consents to the taking of, or failure to take, any action which might in any manner or to any extent vary the risk of the Guarantor under this Guaranty or which, but for this provision, might operate as a discharge of the Guarantor.

5.Certain Waivers.  The Guarantor waives to the fullest extent permitted by law (a) any defense arising by reason of any disability or other defense of the Borrower, any other Loan Party, or any other guarantor of the Guaranteed Obligations or any part thereof, or the cessation from any cause whatsoever (including any act or omission of any Secured Party) of the liability of the Borrower (other than the defense that the Guaranteed Obligations have been fully performed and paid in full in immediately available funds); (b) any defense based on any claim that the Guarantor’s obligations exceed or are more burdensome than those of the Borrower; (c) the benefit of any statute of limitations affecting the Guarantor’s liability hereunder; (d) any right to require any Secured Party to proceed against the Borrower, proceed against or exhaust any security for the Guaranteed Obligations, or pursue any other remedy in the power of any Secured 

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Party whatsoever and any defense based upon the doctrines of marshalling of assets or of election of remedies; (e) any benefit of and any right to participate in any security now or hereafter held by any Secured Party; (f) any fact or circumstance related to the Guaranteed Obligations which might otherwise constitute a defense to the obligations of the Guarantor under this Guaranty (other than the defense that the Guaranteed Obligations have been fully performed and paid in full in immediately available funds); and (g) any and all other defenses or benefits that may be derived from or afforded by applicable law limiting the liability of or exonerating guarantors or sureties (other than the defense that the Guaranteed Obligations have been fully performed and paid in full in immediately available funds). 

The Guarantor expressly waives all presentments, demands for payment or performance, notices of nonpayment or nonperformance, protests, notices of protest, notices of dishonor and all other notices or demands of any kind or nature whatsoever with respect to the Guaranteed Obligations, and all notices of acceptance of this Guaranty or of the existence, creation or incurrence of new or additional Guaranteed Obligations. This Guaranty shall not be affected by the genuineness, validity, regularity or enforceability of the Guaranteed Obligations or any instrument or agreement evidencing any Guaranteed Obligations, or by the existence, validity, enforceability, perfection, non-perfection or extent of any collateral therefor, or by any fact or circumstance relating to the Guaranteed Obligations which might otherwise constitute a defense to the obligations of the Guarantor under this Guaranty (other than the defense that the Guaranteed Obligations have been fully performed and paid in full in immediately available funds), and the Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to any or all of the foregoing (other than the defense that the Guaranteed Obligations have been fully performed and paid in full in immediately available funds).

6.Obligations of Guarantor Independent.  The obligations of the Guarantor hereunder are those of primary obligor, and not merely as surety, and are independent of the Guaranteed Obligations and the obligations of any other guarantor of the Guaranteed Obligations or any part thereof, and a separate action may be brought against the Guarantor to enforce this Guaranty whether or not the Borrower or any other Person is joined as a party.  

7.Subrogation.  The Guarantor shall not exercise any right of subrogation, contribution, indemnity, reimbursement or similar rights with respect to any payments it makes under this Guaranty until after the Facility Termination Date.  If any amounts are paid to the Guarantor in violation of the foregoing limitation, then such amounts shall be held in trust by the Guarantor for the benefit of the Secured Parties and shall forthwith be paid to the Administrative Agent for the benefit of the Secured Parties for application to the Guaranteed Obligations in accordance with the terms of the Credit Agreement or, if the Credit Agreement does not provide for the application of such amount, to be held by the Administrative Agent as collateral security for any Guaranteed Obligations thereafter existing, whether matured or unmatured.

8.Termination; Reinstatement.  

(a)This Guaranty is a continuing, absolute, unconditional and irrevocable guaranty of all Guaranteed Obligations now or hereafter existing and shall remain in full force and effect until the Facility Termination Date, and upon the occurrence of the Facility 

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Termination Date this Guaranty shall terminate and be of no further effect (provided that all indemnities and reimbursement obligations set forth herein and the other Loan Documents shall survive any such termination).  

(b)Notwithstanding the foregoing, this Guaranty shall continue in full force and effect or be revived, as the case may be, if any payment by or on behalf of the Borrower or the Guarantor is made, or a Secured Party exercises its right of setoff, in respect of the Guaranteed Obligations and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by a Secured Party in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Insolvency Laws or otherwise, all as if such payment had not been made or such setoff had not occurred and whether or not the Secured Parties are in possession of or have released this Guaranty and regardless of any prior revocation, rescission, termination or reduction.  The obligations of the Guarantor under this paragraph shall survive termination of this Guaranty.

9.Financial Covenants.

So long as the Facility Termination Date shall not have occurred, the Guarantor and its Subsidiaries on a consolidated basis shall not:

(a)Minimum Liquidity.  Permit Liquidity at any time to be less than the greater of (i) Ten Million and No/100 Dollars ($10,000,000.00) and (ii) 5.0% of the Guarantor’s Recourse Indebtedness.

(b)Minimum Tangible Net Worth.  Permit Tangible Net Worth at any time to be less than the sum of (i) $884,338,269.00, plus (ii) seventy-five percent (75%) of the proceeds of all equity issuances (net of underwriting discounts and commissions, and other out-of-pocket expenses related to such equity issuances) made by the Guarantor or the Sponsor, without duplication, after the date hereof;.

(c)Maximum Ratio of Total Indebtedness to Total Equity.  Permit the ratio of (i) Total Indebtedness to (ii) Total Equity at any time to exceed 4.0 to 1.0. 

(d)Minimum Interest Coverage Ratio.  Permit, as of any date of determination, the ratio of (i) EBITDA for the period of twelve (12) consecutive months ended on such date (if such date is the last day of a fiscal quarter) or most recently ended prior to such date (if such date is not the last day of a fiscal quarter) to (ii) Interest Expense for such period to be less than 1.4 to 1.0.

Notwithstanding anything to the contrary contained herein or elsewhere, (i) in the event that the Guarantor, the Borrower or any Subsidiary of the Guarantor has entered into or shall enter into or amend any other commercial real estate loan repurchase agreement, warehouse facility or credit facility with any other lender or repurchase buyer (each as in effect after giving effect to all amendments thereof, a “Third Party Agreement”) and such Third Party Agreement contains any financial covenant as to the Guarantor for which there is no corresponding covenant in this Section 9 at the time such financial covenant becomes effective (each an “Additional Financial Covenant”), or contains a financial covenant that corresponds to a covenant in this Section 9 and 

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such financial covenant is more restrictive as to the Guarantor than the corresponding covenant in this Section 9 as in effect at the time such financial covenant becomes effective (each, a “More Restrictive Financial Covenant” and together with each Additional Financial Covenant, each an “MFN Covenant”), then (A) the Guarantor shall promptly notify the Administrative Agent of the effectiveness of such MFN Covenant and (B) in the sole discretion of the Required Lenders this Section 9 will automatically be deemed to be modified to reflect such MFN Covenant (whether through amendment of an existing covenant contained in this Section 9 (including, if applicable, related definitions) or the inclusion of an additional financial covenant (including, if applicable, related definitions), as applicable), and (ii) in the event that all Third Party Agreements that contain an MFN Covenant are or have been amended, modified or terminated and the effect thereof is to make less restrictive as to the Guarantor any MFN Covenant or eliminate any Additional Financial Covenant, then, upon Guarantor providing written notice to the Administrative Agent of the same (each an “MFN Step Down Notice”), which Guarantor may deliver to the Administrative Agent from time to time, the financial covenants in this Section 9 will automatically be deemed to be modified to reflect only such MFN Covenants which are then in effect as of the date of any such MFN Step Down Notice; provided, however, that in no event shall the foregoing cause the financial covenants of the Guarantor to be any less restrictive than the financial covenants expressly set forth in clauses (a) through (d) of this Section 9.  Promptly upon request by the Administrative Agent, the Guarantor shall execute and take any and all acts, amendments, supplements, modifications and assurances and other instruments as the Administrative Agent may reasonably require from time to time in order to document any such modification and otherwise carry out the intent and purposes of this paragraph.

10.Stay of Acceleration.   In the event that acceleration of the time for payment of any of the Guaranteed Obligations is stayed, in connection with any case commenced by or against the Guarantor or the Borrower under any Insolvency Laws, or otherwise, all such amounts shall nonetheless be payable by the Guarantor immediately upon demand by the  Administrative Agent subject to Section 2(b) of this Guaranty. 

11.Expenses.  The Guarantor shall pay on demand all out-of-pocket expenses incurred by the Administrative Agent in enforcing its rights under this Guaranty.  The obligations of the Guarantor under this paragraph shall remain in full force and effect until the Guaranteed Obligations are paid in full.

12.Modifications; Miscellaneous.  The books and records of the Administrative Agent showing the amount of the Guaranteed Obligations shall be admissible in evidence in any action or proceeding, and shall be binding upon the Guarantor and conclusive, absent manifest error, for the purpose of establishing the amount of the Guaranteed Obligations.  Neither this Guaranty nor any provision hereof may be changed, waived, discharged or terminated except in a writing signed by the Guarantor and the Administrative Agent (with the consent of the Required Lenders or all of the Lenders, to the extent required by Section 11.01 of the Credit Agreement).  No failure by any Secured Party to exercise, and no delay in exercising, any right, remedy or power hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy or power hereunder preclude any other or further exercise thereof or the exercise of any other right, power or remedy.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law or in equity.  The unenforceability or invalidity of any provision of this Guaranty shall not affect the enforceability or validity of any other 

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provision herein.  This Guaranty is not intended to supersede or otherwise affect any other guaranty now or hereafter given by the Guarantor for the benefit of the Secured Parties (or any of them) or any term or provision thereof.

13.Condition of the Loan Parties.  The Guarantor acknowledges and agrees that it has the sole responsibility for, and has adequate means of, obtaining from the other Loan Parties and any other guarantor of the Guaranteed Obligations such information concerning the financial condition, business and operations of the Loan Parties and any such other guarantors as the Guarantor requires, and that no Secured Party has any duty, and the Guarantor is not relying on any Secured Party at any time, to disclose to the Guarantor any information relating to the business, operations or financial condition of any Loan Party or any other guarantor of the Guaranteed Obligations (the Guarantor waiving any duty on the part of the Secured Parties to disclose such information and any defense relating to the failure to provide the same).  

14.Setoff.  If an Event of Default shall have occurred and is continuing, the Guarantor hereby authorizes each Lender and each of their respective Affiliates, after obtaining the prior written consent of the Administrative Agent and subject to Section 2 of this Guaranty, to the fullest extent permitted by applicable Law, to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by such Lender or any such Affiliate to or for the credit or the account of the Guarantor against any and all of the obligations of the Guarantor now or hereafter existing under this Guaranty to such Lender or their respective Affiliates, irrespective of whether or not such Lender or Affiliate shall have made any demand under this Guaranty and although such obligations of the Guarantor may be contingent or unmatured or are owed to a branch, office or Affiliate of such Lender different from the branch, office or Affiliate holding such deposit or obligated on such indebtedness; provided, that in the event that any Defaulting Lender shall exercise any such right of setoff, (x) all amounts so set off shall be paid over immediately to the Administrative Agent for further application in accordance with the provisions of Section 2.14 of the Credit Agreement and, pending such payment, shall be segregated by such Defaulting Lender from its other funds and deemed held in trust for the benefit of the Administrative Agent and the Lenders, and (y) the Defaulting Lender shall provide promptly to the Administrative Agent a statement describing in reasonable detail the Guaranteed Obligations owing to such Defaulting Lender as to which it exercised such right of setoff.  Subject to Section 2 of this Agreement, the rights of each Lender and its Affiliates under this Section 14 are in addition to other rights and remedies (including other rights of setoff) that such Lender or its Affiliates may have.  Each Lender agrees to notify the Guarantor and the Administrative Agent promptly after any such setoff and application, provided that the failure to give such notice shall not affect the validity of such setoff and application.

15.Representations and Warranties.  The Guarantor represents and warrants that (a) it is duly organized and in good standing under the laws of the jurisdiction of its organization and has full capacity and right to make and perform this Guaranty, and all necessary authority has been obtained; (b) this Guaranty constitutes its legal, valid and binding obligation enforceable in accordance with its terms; (c) the making, existence and performance of this Guaranty does not and will not violate in any material respect the provisions of any applicable law, regulation, judgment or order, and does not and will not result in the breach in any material respect of, or constitute a default or require any consent under, any Contractual Obligation of this 

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Guarantor; (d) all consents, approvals, licenses and authorizations of, and filings and registrations with, any Governmental Authority required under applicable law and regulations for the making and performance of this Guaranty have been obtained or made and are in full force and effect and (e) an executed (or conformed) copy of each of the Loan Documents has been made available to a senior officer of the Guarantor and such officer is familiar with the contents thereof.  

16.[Reserved]

17.Guaranty Enforceable by Administrative Agent.  This Guaranty may be enforced only by the action of the Administrative Agent, in each case acting upon the instructions of the Required Lenders (to the extent required under the Credit Agreement) and no other Secured Party will have any right individually to seek to enforce or to enforce this Guaranty, it being understood and agreed that such rights and remedies may be exercised by the Administrative Agent, for the benefit of the Secured Parties, upon the terms of this Guaranty and the other Loan Documents.  It is understood and agreed that the agreement in this paragraph is solely for the benefit of the Secured Parties.

18.Subordination of Indebtedness Held by Guarantor.  Any indebtedness of any Loan Party now or hereafter held by the Guarantor is hereby subordinated to the prior payment in full in immediately available funds of all the Guaranteed Obligations, and such indebtedness of any Loan Party to the Guarantor, if the Administrative Agent, after an Event of Default has occurred and is continuing, so requests, shall be collected, enforced and received by the Guarantor as trustee for the Secured Parties, shall be segregated from all other property or funds of the Guarantor and shall be paid over to the Administrative Agent for the benefit of the Secured Parties for application to the Guaranteed Obligations in accordance with the terms of the Loan Documents or, if the Loan Documents do not provide for the application of such amount, to be held by the Administrative Agent as collateral security for any Guaranteed Obligations thereafter existing, but without affecting or impairing in any manner the liability of the Guarantor under the other provisions of this Guaranty.  In the event that the Guarantor receives any payment of any indebtedness described in the first sentence of this Section 18 prior to the Facility Termination Date and during the existence of an Event of Default, such payment of such indebtedness which has been received by the Guarantor, if requested by the Administrative Agent, shall be received by the Guarantor as trustee for the Secured Parties, shall be segregated from all other property or funds of the Guarantor and shall be paid over to the Administrative Agent for the benefit of the Secured Parties for application to the Guaranteed Obligations in accordance with the terms of the Credit Agreement or, if the Credit Agreement does not provide for the application of such amount, to be held by the Administrative Agent as collateral security for any Guaranteed Obligations thereafter existing.  Prior to the transfer by the Guarantor of any note or negotiable instrument evidencing any indebtedness of any Loan Party to the Guarantor, the Guarantor shall mark such note or negotiable instrument with a legend that the same is subject to this subordination.  

19.[Reserved]

20.Foreign Currency.  If the Administrative Agent so notifies the Guarantor in writing, at the Administrative Agent’s sole and absolute discretion (with the consent of the 

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Required Lenders or all of the Lenders, to the extent required by Section 11.01 of the Credit Agreement), payments under this Agreement shall be the Dollar equivalent of the Guaranteed Obligations or any portion thereof, determined as of the date payment is made.  If any claim arising under or related to this Agreement is reduced to judgment denominated in a currency (the “Judgment Currency”) other than the currencies in which the Guaranteed Obligations are denominated (collectively the “Obligations Currency”), the judgment shall be for the equivalent in the Judgment Currency of the amount of the claim denominated in the Obligations Currency included in the judgment, determined as of the date of judgment.  The equivalent of any Obligations Currency amount in any Judgment Currency shall be calculated at the spot rate for the purchase of the Obligations Currency with the Judgment Currency quoted by the Administrative Agent in the place of the Administrative Agent’s choice at or about 8:00 a.m. on the date for determination specified above.  The Guarantor shall indemnify each Indemnitee and hold each Indemnitee harmless from and against all loss or damage resulting from any change in exchange rates between the date any claim is reduced to judgment and the date of payment thereof by the Guarantor or any failure of the amount of any such judgment to be calculated as provided in this paragraph.   

21.Notices.   All notices and other communications hereunder shall be in writing and shall be delivered in the manner prescribed for notices in Section 11.02(a) of the Credit Agreement, addressed as follows: 

	
 
	
(a)
	
if to the Guarantor, at the address for the Borrower provided in the Credit Agreement;

	
 
	
(b)
	
if to the Administrative Agent, at its address set forth on Schedule 11.02 of the Credit Agreement; 

or at such other address as shall have been furnished in writing by any Person described above to the party required to give notice hereunder.

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

23.Headings Descriptive.  The headings of the several Sections of this Guaranty are inserted for convenience only and shall not in any way affect the meaning or construction of any provision of this Guaranty.

24.Assignments.  This Guaranty shall (i) bind the Guarantor and its successors and assigns, provided that the Guarantor may not assign its rights or obligations under this Guaranty without the prior written consent of the Administrative Agent (with the consent of the Required Lenders or all of the Lenders, to the extent required by Section 11.01 of the Credit Agreement) (and any attempted assignment without such consent shall be void) and (ii) inure to the benefit of the Secured Parties and their respective successors and assigns and the Secured Parties may, in accordance with Section 11.06 of the Credit Agreement and without affecting the obligations of 

12

 

the Guarantor hereunder, assign, sell or grant participations in the Guaranteed Obligations and this Guaranty, in whole or in part.

25.Damage Waiver.  To the fullest extent permitted by applicable law, no party to this Guaranty shall assert, and each party hereto hereby waives, any claim against any Indemnitee or any Loan Party or any of its Affiliates, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Guaranty or any agreement or instrument contemplated hereby, or the transactions contemplated hereby.

26.Governing Law, Etc.

(a)THIS GUARANTY AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS GUARANTY AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS THEREOF (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

	

	
(b)Sections 11.14 and 11.15 of the Credit Agreement are hereby incorporated herein by reference, mutatis mutandis, and made a part of this Agreement as if set forth herein in full.

27.ENTIRE AGREEMENT.  THIS GUARANTY REPRESENTS THE ENTIRE AGREEMENT AMONG THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

[THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

13

 

IN WITNESS WHEREOF, the Guarantor has caused this Guaranty to be executed and delivered as of the date first above written.

TPG RE FINANCE TRUST HOLDCO, LLC, 

a Delaware limited liability company

 

		
	
By:
	
/s/ Matthew J. Coleman

	
 
	
Name:  Matthew J. Coleman

	
 
	
Title:    Vice President

 

 

 

 

 

Accepted and Agreed to:

BANK OF AMERICA, N.A.,

as Administrative Agent

 

		
	
By:
	
/s/ Stephanie Mack

	
 
	
Name: Stephanie Mack

	
 
	
Title: Vice President

 

[Signature Page to TRT-BAML Amended and Restated Guaranty]EX-10.1

 Exhibit 10.1 

AMENDMENT NO. 5 TO AMENDED AND RESTATED 

CREDIT AND GUARANTY AGREEMENT 

This AMENDMENT NO. 5 TO AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT (this “Amendment No. 5”)
dated as of May 3, 2018 (the “Amendment No. 5 Effective Date”), is by and among SPARTON CORPORATION, an Ohio corporation (“Borrower”), the other Loan Parties, the Lenders from time to
time a party to the Credit Agreement referred to below, and BMO HARRIS BANK, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”). 

W I T N E S S E T H: 

WHEREAS, the Administrative Agent, the Lenders, the Borrower and the other Loan Parties are parties to that certain Amended and Restated
Credit and Guaranty Agreement, dated as of September 11, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”); 

WHEREAS, the Loan Parties have requested that the Administrative Agent and the Lenders amend certain provisions of the Credit Agreement as set
forth herein, and the Administrative Agent and the Lenders have agreed to the requests on the terms and subject to satisfaction of the conditions contained herein; and 

WHEREAS, this Amendment No. 5 shall constitute a Loan Document, these Recitals shall be construed as part of this Amendment No. 5
and capitalized terms used but not otherwise defined in this Amendment No. 5 shall have the meanings ascribed to them in the Credit Agreement. 

NOW, THEREFORE, for and in consideration of the premises and mutual agreements herein contained and for the purposes of setting forth the
terms and conditions of this Amendment No. 5, the parties, intending to be bound, hereby agree as follows: 
 SECTION 1.
Amendments. Subject to the satisfaction of the conditions set forth in Section 3 of this Amendment No. 5, and in reliance on the representations and warranties set forth in Section 5 of this Amendment No. 5, the Loan
Parties, the Administrative Agent and the Required Lenders hereby agree to amend the Credit Agreement as of the Amendment No. 5 Effective Date as follows: 

(a) Section 1.3 (Letters of Credit). The last sentence of subsection (b) of Section 1.3 of the
Credit Agreement is hereby amended and restated in its entirety as follows: 
 “Notwithstanding the foregoing, the LC
Issuer may issue one or more Letters of Credit in U.S. Dollars with an expiration date which is later than the date otherwise permitted by this Section 1.3 but not later than the third anniversary of the scheduled Revolving Credit Termination
Date (“Exception Letter of Credit”); provided that (a) the aggregate outstanding amount of the L/C Obligations with respect to all Exception Letters of Credit shall not at any time exceed Two Million Five Hundred
Thousand Dollars ($2,500,000) and (b) Borrowers shall Cash Collateralize all Exception Letters of Credit on or prior to the Revolving Credit Termination Date (or such earlier date as may be requested by the LC Issuer or the Administrative Agent
during the existence of an Event of Default).” 

 (b) Section 5.1 (Definitions – Amended and Restated).
Section 5.1 of the Credit Agreement is hereby amended by amending and restating the following definitions: 

“Alternative Currency Sublimit”: $0.00. 

“Applicable Margin” means, with respect to Loans, Reimbursement Obligations, and the commitment fees and
letter of credit fees payable under Section 2.1 hereof, until the Pricing Date with respect to the last day of Parent’s fiscal quarter March 2018, the rates per annum shown opposite Level II below, and thereafter from one Pricing Date
to the next the Applicable Margin means the rates per annum determined in accordance with the following schedule: 
  

															
	LEVEL	  	TOTAL FUNDED
DEBT/EBITDA RATIO
FOR SUCH
PRICING
DATE	  	APPLICABLE
MARGIN FOR BASE
RATE
LOANS
UNDER REVOLVING
CREDIT AND
REIMBURSEMENT
OBLIGATIONS
SHALL BE:	 	 	APPLICABLE
MARGIN FOR
EUROCURRENCY
LOANS
UNDER
REVOLVING CREDIT
AND LETTER OF
CREDIT FEE SHALL
BE:	 	 	APPLICABLE MARGIN
FOR COMMITMENT FEE
SHALL BE:	 
	 II
	  	Greater than or equal
to 3.00 to 1.00	  	 	3.50	% 	 	 	4.50	% 	 	 	.50	% 
	 I
	  	Less than 3.00 to
1.00	  	 	2.50	% 	 	 	3.50	% 	 	 	.50	% 

 For purposes hereof, the term “Pricing Date” means, for any measurement period
of the Borrowers ending on or after the last day of Parent’s fiscal quarter March 2018, the date on which the Administrative Agent is in receipt of the Borrowers’ most recent financial statements (and, in the case of the year-end financial statements, audit report) for the fiscal quarter then ended, pursuant to Section 8.5 hereof. The Applicable Margin shall be established based on the Total Funded Debt/EBITDA Ratio for the
most recently completed fiscal quarter and the Applicable Margin established on a Pricing Date shall remain in effect until the next Pricing Date. If the Borrowers have not delivered their financial statements by the date such financial statements
(and, in the case of the year-end financial statements, audit report) are required to be delivered under Section 8.5 hereof, until such financial statements and audit report are delivered, the Applicable
Margin shall be the highest Applicable Margin (i.e., Level II shall apply). If the Borrowers subsequently deliver such financial statements before the next Pricing Date, the Applicable Margin established by such late delivered financial
statements shall take effect from the date of delivery until the next Pricing Date. In all other circumstances, the Applicable Margin established by such financial statements shall be in effect from the Pricing Date that occurs immediately after the
end of the fiscal quarter covered by such financial statements until the next Pricing Date. Each determination of the Applicable Margin made by the Administrative Agent in accordance with the foregoing shall be conclusive and binding on the
Borrowers and the Lenders if reasonably determined. 

  
 2 

 “EBITDA” means, with reference to any period, Net Income for
such period, plus 
 (a) without duplication, the sum of all amounts deducted in arriving at such Net
Income amount in respect of (i) Interest Expense for such period, (ii) federal, state, and local income taxes for such period, (iii) depreciation of fixed assets and amortization of intangible assets for such period, (iv) non-recurring fees, costs and expenses related to this Agreement and the other Loan Documents, including, without limitation, with respect to amendments of the Loan Documents, (v) reserved, (vi) non-cash compensation expense, or other non-cash expenses or charges, for such period arising from the granting of stock options, stock appreciation rights or
similar equity arrangements, (vii) non-cash expenses or losses resulting from any adjustment of Earn-Out Obligations in accordance with GAAP, (viii) non-cash expenses or losses and other non-cash charges incurred during such period (excluding any non-cash charges
representing an accrual of, or reserve for, cash charges to be paid within the next twelve months), (ix) cash losses or other cash expenses from restructuring charges, discontinued operations, and sales of assets (other than inventory sold in
the ordinary course of business) including proposed sales that are not consummated (including the proposed sale to Ultra Electronics that was not consummated) in an aggregate amount not to exceed 15% of the LTM EBITDA (calculated without giving
effect to the EBITDA Limited Addbacks); provided that, solely with respect to quarter ending June 2018, the addback permitted by this clause (ix) shall not exceed $5,500,000, and (x) extraordinary losses, plus 

(b) without duplication, the amount of the “run rate” cost savings, operating expense reductions and synergies
projected by the Borrower Representative in good faith to be realized in connection with, (i) any restructuring of Parent or any of its Subsidiaries not in the ordinary course of business, or (ii) any Disposition of a product line or
facility used for operations of the Parent or any of its Subsidiaries, in each case, that are projected by the Borrower Representative in good faith to result from actions either taken or planned to be taken no later than 12 months after the
consummation of such transaction (which cost savings, operating expense reductions and synergies projected to result from any such action shall be added to EBITDA for any measurement period ending not more than 12 months after such action is
taken as though such cost savings, operating expense reductions and synergies had been realized on the first day of the relevant measurement period), net of the amount of actual benefits realized from such actions; provided that (A) such
cost savings, operating expenses or synergies are factually supportable and quantifiable, and substantiated by a quality of earnings/due diligence report provided by a third party of national standing, (B) no cost savings, operating expense
reductions or synergies shall be added pursuant to this paragraph (b) to the extent duplicative of any expenses or charges or other amounts included in EBITDA pursuant to paragraph (a) of this definition or the pro forma adjustments
included in EBITDA pursuant to the definition of Pro Forma Basis, and (C) the aggregate amount of cost savings, operating expense reductions or synergies added pursuant to this paragraph (b) shall not exceed 5% of LTM EBITDA (calculated
without giving effect to the EBITDA Limited Addbacks) for such measurement period, less 

  
 3 

 (c) without duplication, the sum all amounts included in arriving at such
Net Income amount in respect of (i) extraordinary gains, (ii) gains or income from discontinued operations (iii) gains from the sale of assets (other than inventory sold in the ordinary course of business), and (iv) non-cash gains or non-cash items of income during such period including, without limitation, non-cash gains resulting from
adjustments of Earn Out Obligations in accordance with GAAP, all as determined for Parent and its Subsidiaries on a consolidated basis in accordance with GAAP. For any period that includes a Disposition, EBITDA shall be prepared on a Pro Forma
Basis. 
 “Pro Forma Basis” means, for purposes of calculating any financial covenant (including for
purposes of determining the Applicable Margin), that any Disposition permitted by Sections 8.10(c), 8.10(d), or 8.10(i), any incurrence of Indebtedness, any Restricted Payment or payment of Subordinated Debt, as applicable, shall be deemed to
have occurred as of the first day of the four (4) fiscal quarter period most recently ended prior to the date of such transaction for which the Borrower Representative has delivered financial statements pursuant to Section 8.5(a) or
Section 8.5(b). With respect to any such Disposition, (i) income statement and cash flow statement items (whether positive or negative) attributable to the property disposed of shall be excluded to the extent relating to any period
occurring prior to the date of such transaction and (ii) Indebtedness which is retired shall be excluded and deemed to have been retired as of the first day of the applicable period. 

“Revolving Credit Commitment” means, as to any Lender, the obligation of such Lender to make Revolving Loans
and to participate in Swing Loans and Letters of Credit issued for the account of the Borrowers hereunder in an aggregate principal or face amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on
Schedule 1 attached hereto and made a part hereof, as the same may be reduced or modified at any time or from time to time pursuant to the terms hereof. The Borrowers and the Lenders acknowledge and agree that the Revolving Credit Commitments
of the Lenders aggregate $120,000,000 on the Amendment No. 5 Effective Date. 
 (c) Section 5.1
(Definitions - New). Section 5.1 of the Credit Agreement is hereby amended by adding the following new definitions to such Section in their alphabetically correct order: 

“Amendment No. 5” means Amendment No. 5 to Amended and Restated Credit and Guaranty
Agreement dated as of April 3, 2018, among Borrowers, the other Loan Parties, Administrative Agent and the Lenders. 

“Amendment No. 5 Effective Date” means the date of Amendment No. 5. 

“Exception Letter of Credit” is defined in Section 1.3(b) hereof. 

“Restructuring Consultant” is defined in Section 8.27 hereof. 

“Restructuring Trigger Event” is defined in Section 8.27 hereof. 

  
 4 

 “Sale Transaction” means any sale of Parent and its Subsidiaries
or the sale of all or substantially all of the assets of Parent and its Subsidiaries, whether such sale is structured as a sale of stock, a sale of assets, a merger or otherwise. 

(d) Section 6.4 (Use of Proceeds). The first Sentence of Section 6.4 of the Credit Agreement is hereby
amended and restated in its entirety as follows: 
 “The Borrowers shall use the proceeds of the Revolving Credit to
refinance existing indebtedness, to finance Capital Expenditures, to pay for fees and expenses associated with the closing of this Agreement and the foregoing transactions, for general working capital purposes and for other business purposes;
provided that such purposes are consistent with applicable Legal Requirements.” 
 (e) Section 8.5
(Financial Reports). 
 (i) Subsection (h) of Section 8.5 of the Credit Agreement is hereby amended and
restated in its entirety as follows: 
 “(h) as soon as available, and in any event no later than 30 days after
the last day of each fiscal month (except, with respect to the last day of a fiscal quarter, no later than 40 days after the end of such fiscal quarter) of each fiscal year of the Parent, (i) a copy of the consolidated balance sheet of the
Parent and its Subsidiaries as of the last day of such fiscal month and the consolidated statements of income, retained earnings, and cash flows of the Parent and its Subsidiaries for the fiscal month and for the fiscal year-to-date period then ended, each in reasonable detail showing in comparative form the figures for the corresponding date and period in the previous fiscal year, prepared
by the Borrowers in accordance with GAAP (subject to the absence of footnote disclosures and year-end audit adjustments) and (ii) commencing with the fiscal month ending April 2018, a management
discussion of the monthly operating results in form, substance and detail reasonably acceptable to Administrative Agent, in each case, certified to by its chief financial officer or another officer of the Borrower Representative acceptable to the
Administrative Agent;” 
 (ii) Section 8.5 of the Credit Agreement is hereby amended by adding a new
subsection (k) thereto as follows: 
 “(k) (i) as soon as available, and in any event no later than
30 days after the last day of each fiscal month of each fiscal year of the Parent, commencing with fiscal month April 2018, a thirteen (13)-week rolling cash flow forecast for the Parent and its Subsidiaries, which shall reflect on a line-item
basis, anticipated cash receipts and disbursements on a weekly basis for each week of such forecast and (ii) as soon as available, and in any event no later than 30 days after the last day of each fiscal month of each fiscal year of the
Parent, commencing with fiscal month 

  
 5 

 
May 2018, a variance report setting forth material variances in cash receipts or disbursements from the forecasted cash receipts and disbursements as set forth in immediately preceding thirteen
(13)-week rolling case flow forecast delivered pursuant to clause (i) above, in each case, in form, substance and detail reasonably acceptable to Administrative Agent.” 

(f) Section 8.12 (Dividends and Certain Other Restricted Payments). Section 8.12 of the Credit Agreement
is hereby amended and restated in its entirety as follows: 
 “Section 8.12 Dividends and
Certain Other Restricted Payments. No Loan Party shall, nor shall any Loan Party permit any Subsidiary to, (a) declare or pay any dividends on or make any other distributions in respect of any class or series of its capital stock or other
equity interests (other than dividends or distributions payable solely in its capital stock or other equity interests), or (b) directly or indirectly purchase, redeem, or otherwise acquire or retire any of its capital stock or other equity
interests or any warrants, options, or similar instruments to acquire the same (the dividends, distributions, purchases, redemptions and other payments restricted by this Section 8.12, collectively, “Restricted Payments”);
provided that, that the foregoing shall not operate to prevent (i) the making of dividends or distributions by any Subsidiary to any Loan Party or by any Subsidiary that is not a Loan Party to any other Subsidiary that is not a Loan
Party, or (ii) to pay any appraisal claims made by dissenting shareholders of the Parent in accordance with Chapter 1701 of the Ohio Revised Code with respect to a Sale Transaction in the aggregate amount of up to $500,000.” 

(g) Section 8.23 (Financial Covenants). 

(i) Section 8.23(a) of the Credit Agreement is hereby amended and restated in its entirety as follows: 

“(a) Total Funded Debt/EBITDA Ratio. As of the last day of each of the following fiscal quarters of Parent,
the Loan Parties shall not permit the Total Funded Debt/EBITDA Ratio to be greater than the respective following amounts set forth opposite such fiscal quarters: 
  

					
	 Fiscal Quarter End
	  	Total Funded Debt/
EBITDA Ratio	 
	 March 2018
	  	 	4.50: 1.00	 
	 June 2018
	  	 	4.50: 1.00	 
	 September 2018 and each fiscal quarter thereafter
	  	 	3.00: 1.00	 

  
 6 

 (ii) Section 8.23(c) of the Credit Agreement is hereby amended and restated
in its entirety as follows: 
 “(c) Minimum EBITDA. As of the last day of each of the following fiscal quarters
of the Parent, the Loan Parties shall not permit EBITDA for the period of four fiscal quarters then ended to be less than the following: 
  

					
	 Fiscal Quarter End
	  	Minimum EBITDA	 
	 March 2018
	  	$	21,400,000	 
	 June 2018
	  	$	20,000,000	 

 (h) Section 8.27 (Restructuring Consultant). The Credit Agreement is hereby
amended by adding a new Section 8.27 thereto as follows: 
 “Section 8.27
Restructuring Consultant. Parent has informed the Administrative Agent and the Lenders that it intends to enter into a process to explore a Sale Transaction. If (a) the Parent has not entered into a definitive agreement by May 31,
2018 (or such later date as the Required Lenders permit in writing in their sole discretion) with respect to a Sale Transaction, (b) the sale process with respect to such Sale Transaction is terminated prior to May 31, 2018 (or such later
date as the Required Lenders permit in writing in their sole discretion) or (c) the Parent has entered into a definitive agreement by May 31, 2018 (or such later date as the Required Lenders permit in writing in their sole discretion) with
respect to a Sale Transaction, and the definitive agreement is later terminated (the events described in the foregoing clause (a)-(c), each, a “Restructuring Trigger Event”), then within fifteen (15) days after the occurrence
of such Restructuring Trigger Event, the Parent shall engage, at its own expense, a restructuring consultant acceptable to Administrative Agent (a “Restructuring Consultant”), on terms and conditions acceptable to Administrative
Agent. In the event a Restructuring Consultant is required to be engaged pursuant to this Section 8.27, Parent shall cause the Restructuring Consultant to prepare and provide to Administrative Agent the Restructuring Consultant’s initial
report by no later than sixty (60) days after the date the Restructuring Consultant was required to be engaged pursuant to this Section 8.27 (or such later date as the Required Lenders permit in writing in their sole discretion), and shall
ensure Administrative Agent has reasonable access to the Restructuring Consultant and its work and that such Restructuring Consultant cooperates fully with Administrative Agent.” 

(i) Exhibit E (Compliance Certificate). Schedule I to Exhibit E of the Credit Agreement is hereby
amended and restated in its entirety to read as set forth on Annex A attached hereto. 
 (j) Schedule I
(Commitments). Schedule I of the Credit Agreement is hereby amended and restated in its entirety, to read as set forth on Annex B attached hereto. 

SECTION 2. Waiver of Event of Default. Subject to the satisfaction of the conditions set forth in Section 3 of this Amendment
No. 5, and in reliance on the representations and warranties set forth in Section 4 of this Amendment No. 5, the Required Lenders hereby waive any Event of Default that may have occurred solely as a result of the Loan Parties’
failure to comply with Section 8.23(a) of the Credit Agreement as in effect prior to the effectiveness of this Amendment No. 5 solely with respect to the test period ending on the last day of Parent’s fiscal quarter March 2018 (the
“Subject Default”). The Required Lenders’ waiver of the Subject Default shall not be deemed to be a waiver of any other existing or hereafter arising Event of Default or any other deviation from the express terms of the Credit
Agreement including any further breach of Section 8.23(a) of the Credit Agreement. 

  
 7 

 SECTION 3. Conditions of Effectiveness. This Amendment No. 5 shall become
effective on the Amendment No. 4 Effective Date, but only upon receipt by the Administrative Agent of the following: 
 (a) one
or more counterparts of this Amendment No. 5 executed by the Loan Parties, Swing Line Lender, L/C Issuer, the Administrative Agent and the Required Lenders; 

(b) receipt of any other deliveries set forth on the closing document checklist delivered to the Borrower Representative prior to the
date of this Amendment No. 5; and 
 (c) Borrowers shall have paid the fees referred to Section 5(a)(i) of this Amendment.

 SECTION 4. Representations and Warranties. Each Loan Party represents and warrants to the Administrative Agent and the
Lenders that: 
 (a) (i) such Loan Party has all necessary power and authority to execute and deliver this Amendment No. 5
and to perform its obligations hereunder, (ii) this Amendment No. 5 has been duly authorized by all requisite corporate or limited liability company action, as applicable, and constitutes the legal, valid and binding obligations of such
Loan Party and is enforceable against such Loan Party in accordance with its terms, except as such enforceability may be limited by applicable solvency, bankruptcy, reorganization, moratorium or other similar laws affecting creditors’ rights
generally and applicable equitable principles (whether considered in a proceeding at law or in equity), and (iii) neither the execution, delivery or performance by such Loan Party of this Amendment No. 5 (A) violates any material
provision of any law or regulation applicable to such Loan Party, or any other decree of any governmental body, (B) conflicts with or results in the breach or termination of, constitutes a default under or accelerates any performance required
by, any indenture, mortgage, deed of trust, lease, agreement or other instrument to which any Loan Party or Subsidiary is a party or by which such Person or any of its property is bound, (C) results in the creation or imposition of any Lien
(other than Liens permitted pursuant to Section 8.8 of the Credit Agreement) upon any Property of such Loan Party, (D) violates or conflicts with the articles of incorporation (or articles of formation), bylaws (or operating agreement), or
other organizational documents, as applicable, of such Loan Party, or (E) requires the consent, approval or authorization of, or declaration or filing with, any other Person, except for those already duly obtained; 

(b) after giving effect to this Amendment No. 5, no Default or Event of Default shall have occurred or be continuing as of the
date hereof; and 
 (c) after giving effect to this Amendment No. 5 and the transactions contemplated hereby, the
representations and warranties of the Loan Parties contained in the Credit Agreement and other Loan Documents are true and correct on and as of date hereof to the same extent as though made on and as of such date except to the extent such
representations and warranties specifically relate to an earlier date, in which case each such representation or warranty shall have been true and correct on and as of such earlier date. 

  
 8 

 SECTION 5. Reference to, and Effect on, Loan Documents. 

(a) Fees and Expenses. 

(i) Fees. On the Amendment No. 5 Effective Date, Borrowers shall pay to Administrative Agent, for the account of
the Qualifying Lenders (as hereinafter defined) (including BMO Harris), in good and immediately available funds, in amount equal to 0.50% of each Qualifying Lender’s Revolving Credit Commitment as set forth on Annex B to this Amendment
No. 5. “Qualifying Lender” means a Lender who has, on or before 3:00 p.m. Central Standard Time on April 3, 2018, (x) confirmed to Administrative Agent in writing that such Lender has obtained all approvals
necessary for such Lender to execute and deliver this Amendment No. 5, and (y) delivered to Administrative Agent such Lender’s signature page to this Amendment No. 5 duly executed by such Lender. Lenders who are not Qualifying
Lenders shall not be entitled to any amendment fee or other fee with respect to this Amendment No. 5. In addition, Borrowers shall pay the fees set forth in the fee letter dated as of the Amendment No. 5 Effective Date among Borrower
Representative, the Administrative Agent and the other parties named therein to the Administrative Agent for its own account. 

(ii) Expenses. The Borrower agrees to pay, on demand, in accordance with Section 13.15 of the Credit Agreement, all
costs and expenses of, or incurred by, the Administrative Agent, including but not limited to reasonable attorneys’ fees and costs in connection with the preparation, execution and delivery of this Amendment No. 5. 

(b) Ratification of Loan Documents. Except as specifically amended above, the Credit Agreement and the other Loan Documents
shall remain in full force and effect. Notwithstanding anything contained herein, the terms of this Amendment No. 5 are not intended to and do not effect a novation of the Credit Agreement or any other Loan Document. Each of the Loan Parties
hereby ratifies and reaffirms each of the terms and conditions of the Loan Documents to which it is a party and all of its obligations thereunder. 

(c) No Waiver. Except as expressly set forth in this Amendment No. 5, the execution, delivery and effectiveness of this
Amendment No. 5 shall not operate as a waiver of any Default or Event of Default whether now existing or hereafter arising or of any right, power or remedy of the Administrative Agent or the Lenders under the Credit Agreement, under any of the
other Loan Documents or under applicable law. 
 (d) References. Upon the effectiveness of this Amendment No. 5, each
reference in (i) the Credit Agreement to “this Agreement,” “this Credit Agreement,” “hereunder,” “hereof” or words of similar import and (ii) any other Loan Document to “the Credit
Agreement” or words of similar import shall, in each case and except as otherwise specifically stated therein, mean and be a reference to the Credit Agreement as amended hereby. Upon the effectiveness of this Amendment No. 5, each
reference to the Loan Documents in the Credit Agreement shall include this Amendment No. 5. 

  
 9 

 SECTION 6. Miscellaneous. 

(a) Successors and Assigns. This Amendment No. 5 shall be binding on the Loan Parties and shall inure to the benefit of the
Administrative Agent and the Lenders and their respective successors and assigns. 
 (b) Entire Agreement. This Amendment
No. 5 constitutes the entire agreement of the parties hereto with respect to the subject matter hereof and supersedes all other understandings, oral or written, with respect to the subject matter hereof. 

(c) Headings. Section headings in this Amendment No. 5 are included herein for convenience of reference only and shall
not constitute a part of this Amendment No. 5 for any other purpose. 
 (d) Severability. Wherever possible, each
provision of this Amendment No. 5 shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Amendment No. 5 shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Amendment No. 5. 

(e) Counterparts. This Amendment No. 5 may be executed in any number of separate original counterparts and by the different
parties on separate counterparts, each of which shall be deemed to be an original, but all of such counterparts shall together constitute one agreement. Delivery of an executed counterpart of a signature page to this Amendment No. 5 by
facsimile, “pdf” or other form of electronic delivery shall be effective as delivery of a manually executed counterpart of this Amendment No. 5. 

(Signature Pages Follow) 

  
 10 

 (Signature Page to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement) 

IN WITNESS WHEREOF, intending to be legally bound, the parties hereto have duly executed this Amendment No. 5 to Amended and Restated
Credit and Guaranty Agreement as of the date first above written. 
  

							
	BORROWER:	 		 	SPARTON CORPORATION, an Ohio corporation
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Senior Vice President and Chief Financial Officer

 (Signature Page to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement) 
  

							
	GUARANTORS:	 		 	SPARTRONICS, INC., a Michigan corporation
				
		 		 	By:	 	/s/ Joseph G. McCormack

		 		 		 	Joseph G. McCormack

		 		 		 	Vice President, Secretary and Treasurer
			
		 		 	SPARTON TECHNOLOGY, INC., a New Mexico corporation
				
		 		 	By:	 	/s/ Joseph G. McCormack

		 		 		 	Joseph G. McCormack
		 		 		 	Vice President, Secretary and Treasurer
			
		 		 	SPARTON DELEON SPRINGS, LLC, a Florida limited liability company
				
		 		 	By:	 	/s/ Joseph G. McCormack

		 		 		 	Joseph G. McCormack

		 		 		 	Vice President and Secretary
			
		 		 	SPARTON MEDICAL SYSTEMS, INC., a Michigan corporation
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President, Secretary and Treasurer

 (Signature Page to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement) 
  

							
	GUARANTORS:	 		 	SPARTON MEDICAL SYSTEMS COLORADO, LLC, a Colorado limited liability company
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President and Secretary
			
		 		 	SPARTON BP MEDICAL DENVER, LLC, a Delaware limited liability company
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President and Secretary
			
		 		 	SPARTON ONYX HOLDINGS, LLC, a Delaware limited liability company
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President and Secretary
			
		 		 	SPARTON ONYX, LLC, a South Dakota limited liability company
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President and Secretary

 (Signature Page to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement) 
  

							
	GUARANTORS:	 		 	RESONANT POWER TECHNOLOGY, INC., a Wisconsin corporation
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President and Secretary
			
		 		 	SPARTON AUBREY GROUP, INC., a California corporation
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President and Secretary
			
		 		 	SPARTON BROOKSVILLE, LLC, a Delaware limited liability company
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President and Secretary
			
		 		 	SPARTON AYDIN, LLC, a Delaware limited liability company
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President and Secretary

 (Signature Page to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement) 
  

							
	GUARANTORS:	 		 	SPARTON BECKWOOD, LLC, a Delaware limited liability company
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President and Secretary
			
		 		 	BECKWOOD SERVICES, INC., a New Hampshire corporation
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President, Secretary and Treasurer
			
		 		 	SPARTON eMT, LLC, a Delaware limited liability company
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President and Secretary
			
		 		 	SPARTON IRVINE, LLC, a California limited liability company
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President and Secretary

 (Signature Page to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement) 
  

							
	GUARANTORS:	 		 	SPARTON IED, LLC, a Delaware limited liability company
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President and Secretary
			
		 		 	SPARTON DESIGN SERVICES, LLC, a Delaware limited liability company
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President and Secretary
			
		 		 	REAL TIME ENTERPRISES, INC., a New York corporation
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President, Secretary and Treasurer
			
		 		 	HUNTER TECHNOLOGY CORPORATION, a California corporation
				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President, Secretary and Treasurer
			
		 		 	 HTC-EIAC, INC., a California
corporation

				
		 		 	By:	 	/s/ Joseph G. McCormack
		 		 		 	Joseph G. McCormack
		 		 		 	Vice President, Secretary and Treasurer

 (Signature Page to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement) 
  

							
	ADMINISTRATIVE AGENT:	 		 	BMO HARRIS BANK N.A., as Administrative Agent
				
		 		 	 By:
	 	 /s/ Julie A. Hughes

		 		 		 	 Julie A. Hughes

		 		 		 	 Vice President

 (Signature Page to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement) 
  

							
	LENDER, SWING LINE LENDER
AND L/C ISSUER:	 		 	BMO HARRIS BANK N.A.
		 		 	By:	 	/s/ Julie A. Hughes
		 		 		 	Julie A. Hughes
		 		 		 	Vice President

 (Signature Page to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement) 
  

							
	LENDER:	 		 	U.S. BANK NATIONAL ASSOCIATION
				
		 		 	By:	 	/s/ Adam Gelfeld
		 		 	Name:	 	Adam Gelfeld
		 		 	Title:	 	Senior Vice President

 (Signature Page to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement) 
  

									
	LENDER:	 		 	BANK OF AMERICA, N.A.
					
		 		 		 	By:	 	/s/ John M. Schuessler
		 		 		 	Name: John M. Schuessler
		 		 		 	Title:   Senior Vice President

 (Signature Page to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement) 
  

									
	LENDER:	 		 	SUNTRUST BANK
					
		 		 		 	By:	 	/s/ Frank McCormack
		 		 		 	Name:	 	Frank McCormack
		 		 		 	Title:	 	Senior Vice President

 (Signature Page to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement) 
  

									
	LENDER:	 		 	FIFTH THIRD BANK
					
		 		 		 	By:	 	/s/ Cynthia Clark
		 		 		 	Name: Cynthia Clark
		 		 		 	Title:   Vice President

 (Signature Page to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement) 
  

									
	LENDER:	 		 	ASSOCIATED BANK, N.A.
					
		 		 		 	By:	 	/s/ Keith M. Butala
		 		 		 	Name: Keith M. Butala
		 		 		 	Title: Vice President

 (Signature Page to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement) 
  

									
	LENDER:	 		 	KEYBANK NATIONAL ASSOCIATION
					
		 		 		 	By:	 	/s/ Brian P. Fox
		 		 		 		 	Brian P. Fox
		 		 		 		 	Vice President

 ANNEX A 

to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement 

SCHEDULE I 

TO 

COMPLIANCE CERTIFICATE 

SPARTON CORPORATION AND THE OTHER LOAN
PARTIES 
 COMPLIANCE CALCULATIONS 

FOR AMENDED AND RESTATED CREDIT AND
GUARANTY AGREEMENT DATED AS OF 
 SEPTEMBER 11, 2014

 CALCULATIONS AS OF
                            ,
                 
  

					
	 A. Total Funded Debt/EBITDA Ratio (Section 8.23(a))
	  			
		
	 1.  Total Funded Debt
	  	$	                    	 
		
	 2.  Net Income for past 4 quarters
	  	 	                    	 
		
	 3.  Interest Expense for past 4 quarters
	  	 	                    	 
		
	 4.  Income taxes for past 4 quarters
	  	 	                    	 
		
	 5.  Depreciation and Amortization Expense for past 4 quarters
	  	 	                    	 
		
	 6.  Non-recurring fees, costs, expenses
related to this Agreement or other Loan Documents for past 4 quarters
	  	 	                    	 
		
	 7.  Non-cash compensation expense, or other
non-cash expenses or charges for the past 4 quarters arising from the granting of stock options, stock appreciation rights or similar equity arrangements
	  	 	                    	 
		
	 8.  Non-cash expenses or losses resulting
from any adjustment of Earn-Out Obligations
	  	 	                    	 
		
	 9.  Non-cash expenses or losses and other non-cash charges incurred for the past 4 quarters (excluding any non-cash charges representing an accrual of, or reserve for, cash charges to be paid within the next twelve
months)
	  	 	                    	 

  
 ANNEX A – Page 1

			
		
	 10.  Cash losses or other cash expenses from restructuring charges, discontinued
operations, and sales of assets (other than inventory sold in the ordinary course of business) including proposes sales that are not consummated (including the proposed sale to Ultra Electronics that was not consummated) during the past 4 quarters
in an aggregate amount not to exceed 15% of the LTM EBITDA (calculated without giving effect to the EBITDA Limited Addbacks); provided that solely with respect to the quarter ending June 2018, the addback permitted by this item 10 shall not exceed
$5,500,000
	  	                    
		
	 11.  Extraordinary losses for the past 4 quarters
	  	                    
		
	 12.  The amount of the “run rate” cost savings, operating expense reductions
and synergies projected by the Borrower Representative in good faith to be realized in connection with (i) any restructuring of Parent or any of its Subsidiaries not in the ordinary course of business, or (ii) any Disposition of a product
line or facility used for operations of the Parent or any of its Subsidiaries, in each case, that are projected by the Borrower Representative in good faith to result from actions either taken or planned to be taken no later than 12 months
after the consummation of such transaction (which cost savings, operating expense reductions and synergies projected to result from any such action shall be added to EBITDA for any measurement period ending not more than 12 months after such
action is taken as though such cost savings, operating expense reductions and synergies had been realized on the first day of the relevant measurement period), net of the amount of actual benefits realized from such actions, in each case, subject to
all the limitations set forth in paragraph (b) of the definition of EBITDA including, without limitation, that the aggregate amount of cost savings, operating expense reductions or synergies added pursuant to paragraph (b) of the
definition of EBITDA, shall not exceed 5% of LTM EBITDA (calculated without giving effect to the EBITDA Limited Addbacks)
	  	                    
		
	 13.  Reserved
	  	                    
		
	 14.  Pro forma adjustments to EBITDA permitted pursuant to the definition of Pro Forma
Basis
	  	                    
		
	 15.  Sum of Lines A2 through A14
	  	                    
		
	 16.  Extraordinary gains for the past 4 quarters
	  	                    

  
 ANNEX A – Page 2

					
		
	 17.  Gains or income from discontinued operations for the past 4 quarters
	  	 	                    	 
		
	 18.  Gains from the sale of assets (other than inventory sold in the ordinary course
of business) for the past 4 quarters
	  	 	                    	 
		
	 19.  Non-cash gains or non-cash items of
income for the past 4 quarters
	  	 	                    	 
		
	 20.  Sum of Lines A16 through A19
	  	 	                    	 
		
	 21.  Line A15 less Line A20 (“EBITDA”)
	  	 	                    	 
		
	 22.  Ratio of Line A1 to A21
	  	 	        :1.0	 
		
	 23.  Line A11 ratio must not exceed
	  	 	        :1.0	 
		
	 24.  The Loan Parties are in compliance (circle yes or no)
	  	 	yes/no	 
		
	 B. Fixed Charge Coverage Ratio (Section 8.23(b))
	  			
		
	 1.  EBITDA from Line A21 above
	  	$	                    	 
		
	 2.  Capital Expenditures for past 4 quarters
	  	$	                    	 
		
	 3.  Difference of Line B1 minus B2
	  	$	                    	 
		
	 4.  Principal payments for past 4 quarters
	  	$	                    	 
		
	 5.  Cash Interest Expense for past 4 quarters
	  	$	                    	 
		
	 6.  Cash income taxes for past 4 quarters
	  	$	                    	 
		
	 7.  Restricted Payments for past 4 quarters
	  	$	                    	 
		
	 8.  Sum of Lines B4, B5, B6 and B7
	  	$	                    	 
		
	 9.  Ratio of Line B3 to Line B8
	  	 	        :1.0	 
		
	 10.  Line B9 ratio must not be less than
	  	 	1.50:1.0	 
		
	 11.  The Loan Parties are in compliance (circle yes or no)
	  	 	yes/no	 
		
	 C. Minimum EBITDA (Section 8.23(c)).
	  			
		
	 1.  EBITDA from Line A21 above
	  	$	                    	 
		
	 2.  Minimum EBITDA
	  	$	                    	 
		
	 3.  The Loan Parties are in compliance (circle yes or no)
	  	 	yes/no	 

  
 ANNEX A – Page 3

 ANNEX B 

to Amendment No. 5 to Amended and Restated 

Credit and Guaranty Agreement 

SCHEDULE I 

COMMITMENTS 
  

					
	 NAME OF
LENDER
	  	REVOLVING CREDIT COMMITMENT	 
	 BMO Harris Bank, N.A.
	  	$	25,476,000.00	 
	 U.S. Bank National Association
	  	$	21,972,000.00	 
	 Bank of America, N.A.
	  	$	20,568,000.00	 
	 SunTrust Bank
	  	$	18,276,000.00	 
	 Fifth Third Bank
	  	$	12,000,000.00	 
	 Associated Bank, N.A.
	  	$	10,908,000.00	 
	 Keybank National Association
	  	$	10,800,000.00	 
	 TOTAL
	  	$	120,000,000.00	 
		  	  
	  
	 

  
 ANNEX B – Page 1

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