Document:

bkcc-ex101_8.htm

EXHIBIT 10.1

 

WAIVER and AGREEMENT NO. 2 dated as of May 1, 2020 (this "Waiver") to the SECOND AMENDED AND RESTATED SENIOR SECURED REVOLVING CREDIT AGREEMENT dated as of March 13, 2013 (as amended, supplemented, amended and restated or otherwise modified from time to time, the "Credit Agreement"), among BLACKROCK CAPITAL INVESTMENT CORPORATION, a Delaware corporation (the "Borrower"); the LENDERS from time to time party thereto; CITIBANK, N.A., as Administrative Agent for the Lenders (in such capacity, the "Administrative Agent"); and BANK OF MONTREAL, CHICAGO BRANCH, as Syndication Agent.

The Borrower and the Required Lenders (such term and each other capitalized term used and not otherwise defined herein having the meaning assigned to it in the Credit Agreement) previously entered into that Waiver and Agreement dated as of March 31, 2020 ("Waiver No. 1") to the Credit Agreement. The Borrower has requested that the Lenders agree to waive compliance with or otherwise modify the covenants set forth in Section 6.07(a) and Section 6.07(b) of the Credit Agreement at all times from March 31, 2020 through and including August 10, 2020 (such period, the "Waiver Period"), and the Lenders whose signatures appear below, constituting at least the Required Lenders, are willing so to provide such waiver on the terms and subject to the conditions set forth herein. This Waiver supplements and supersedes in its entirety Waiver No. 1.

Accordingly, in consideration of the agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows:

A.Waiver and Agreement. Effective as of the Waiver Effective Date (as defined below):

(i)each Lender party hereto hereby waives compliance by the Borrower with the covenant set forth in Section 6.07(a) (Minimum Shareholders' Equity) of the Credit Agreement at and for the period ended March 31, 2020; 

(ii)each Lender party hereto hereby agrees (x) to waive the requirement for the Borrower to comply with the covenant set forth in Section 6.07(a) (Minimum Shareholders' Equity) of the Credit Agreement at all times after March 31, 2020 during the Waiver Period, (y) that the minimum Asset Coverage Ratio required to be maintained by the Borrower on each day during the Waiver Period pursuant to Section 6.07(b) (Asset Coverage Ratio) of the Credit Agreement shall be reduced from 2.00 to 1 to 1.50 to 1 and (z) that any non-compliance with Section 6.07(a) of the Credit Agreement shall not constitute a Default at any time during the Waiver Period; provided that (I) the waiver set forth above in this clause (ii) shall automatically terminate and be of no further force and effect, and all rights of the Lenders and the Administrative Agent with respect to any breach of Section 6.07(a) or (b) of the Credit Agreement waived pursuant to this clause (ii) shall, without further action by any person, automatically be reinstated immediately following the Waiver Period as if the waiver provided above in this clause (ii) had not been granted; provided, that so long as the Asset Coverage Ratio maintained by the Borrower is not less than 1.50 to 1 at any time during the Waiver Period, failure to maintain an Asset Coverage Ratio not less than 2.00 to 1 at any time during the Waiver Period shall not constitute a Default at any time after the Waiver Period and (II) nothing contained herein shall waive or excuse 

 

 

 

the requirement to deliver, at the times otherwise required by the Credit Agreement, the information and reports required by the Credit Agreement, including Section 5.01 thereof, during the Waiver Period; 

(iii)in connection with the waivers set forth above, the Borrower agrees notwithstanding anything to the contrary set forth in the Credit Agreement that (x) it shall not request any Borrowing or the issuance of any Letter of Credit during the Waiver Period (and the Lenders and the Issuing Bank shall not be required to honor any such request) if, after giving effect to such Borrowing or issuance, the aggregate Revolving Credit Exposure would exceed $228,000,000, and (y) during the Waiver Period, the Borrower shall not, and shall not permit any Subsidiary to, use more than $10,000,000 of the proceeds of Loans from new Borrowings or issuances of Letters of Credit, in the event the aggregate Revolving Credit Exposure exceeds $192,000,000, to make or acquire any Investment in any third party (other than Cash Equivalents) which is not a Portfolio Investment or an Affiliate thereof as of the Waiver Effective Date; and

(iv)the waivers set forth in this Section A are limited to the extent specifically set forth above and no other terms, covenants or provisions of the Loan Documents are intended to be affected hereby.

B.Representations and Warranties. The Borrower hereby represents and warrants to the Administrative Agent and the Lenders that (i) this Waiver is within its corporate powers and has been duly authorized by all necessary corporate and, if required, stockholder action of the Borrower, (ii) this Waiver has been duly executed and delivered by the Borrower, (iii) each of this Waiver, and the Credit Agreement as modified hereby, constitutes a legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law, (iv) as of the date hereof, no Default or Event of Default has occurred and is continuing and (v) the representations and warranties set forth in Article III of the Credit Agreement and in the other Loan Documents are true and correct in all material respects on and as of the date hereof, with the same effect as though made on and as of the date hereof, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties were true and correct in all material respects as of such earlier date (except, in each case, to the extent any such representation or warranty is itself qualified by materiality or reference to a Material Adverse Effect, in which case it shall be true and correct in all respects).

C.Effectiveness. This Waiver shall become effective as of the first date (the "Waiver Effective Date") on which:

(i)the Administrative Agent (or its counsel) shall have received duly executed counterparts hereof that, when taken together, bear the authorized signatures of the Borrower, each Subsidiary Guarantor and the Required Lenders; and

(ii)the Administrative Agent shall have received all amounts invoiced to the Borrower that are due and payable to it, any of its affiliates or any of the Lenders, including 

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payment or reimbursement of all fees and expenses (including fees, charges and disbursements of counsel) required to be paid or reimbursed by the Borrower in connection with this Amendment.

D.Effect of Waiver. Except as expressly set forth herein, this Waiver shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the Lenders or the Administrative Agent under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect. Nothing herein shall be deemed to entitle the Borrower or any Subsidiary Guarantor to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances. This Waiver shall apply and be effective only with respect to the provisions of the Credit Agreement specifically referred to herein. This Waiver shall constitute a Loan Document, and the representations, warranties and agreements contained herein shall, for all purposes of the Credit Agreement, be deemed to be set forth in the Credit Agreement. Each Obligor agrees that all of its obligations, liabilities and indebtedness under each Loan Document, including guarantee obligations, shall remain in full force and effect, in accordance with applicable law, on a continuous basis after giving effect to this Waiver. On and after the effectiveness of this Waiver, any reference to the Credit Agreement contained in the Loan Documents shall mean the Credit Agreement as modified hereby. This Waiver shall not extinguish any payment obligation outstanding under the Credit Agreement or discharge or release the Lien or priority of any Loan Document or any other security therefor or any guarantee thereof. Nothing herein contained shall be construed as a substitution or novation of the obligations outstanding under the Credit Agreement or instruments guaranteeing or securing the same, which shall remain in full force and effect, except as modified hereby or by instruments executed concurrently herewith. Nothing expressed or implied in this Waiver or any other document contemplated hereby shall be construed as a release or other discharge of any Loan Party under any Loan Document from any of its obligations and liabilities thereunder.

E.General Release. In consideration of the willingness of the Administrative Agent and the Lenders to enter into this Waiver, each of the Borrower and each Subsidiary Guarantor hereby releases and forever discharges each Lender Party (including its predecessors, successors and assigns) and its Related Parties (each of the foregoing, a "Released Lender Party"), from any and all actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in law or in equity, now known or unknown, suspected or unsuspected, to the extent related to the Loan Documents or the transactions described therein that relate to any act or omission by any Released Lender Party that occurred on or prior to the date hereof.

F.Counterparts. This Waiver may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute one and the same contract. Delivery of an executed counterpart of a signature page of this Waiver by facsimile or other electronic imaging means shall be as effective as delivery of a manually executed counterpart hereof.

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G.Severability. Any provision of this Waiver held to be ineffective, invalid, illegal or unenforceable shall not affect the effectiveness, validity, legality and enforceability of the remaining provisions hereof; and the ineffectiveness, invalidity, illegality or unenforceability of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

H.Electronic Execution.  The words “execution,” “signature,” and words of like import in this Waiver shall be deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. Without limiting the generality of the foregoing, the parties hereto hereby (i) agree that, for all purposes, including in connection with any workout, restructuring, enforcement of remedies, bankruptcy proceedings or litigation among the Administrative Agent, the Lenders, the Issuing Banks and the Borrower, electronic images of this Waiver (including with respect to any signature pages hereto) shall have the same legal effect, validity and enforceability as any paper original, and (ii) waive any argument, defense or right to contest the validity or enforceability of this Waiver based solely on the lack of paper original copies of this Waiver, including with respect to any signature pages hereto. Each of the parties hereto represents and warrants to the other parties that it has the corporate capacity and authority to execute this Waiver through electronic means and that there are no restrictions for doing so in such party’s constitutive documents. 

I.Applicable Law. THIS WAIVER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

J.Headings. The headings of this Waiver are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

[Remainder of page intentionally left blank]

 

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

BLACKROCK CAPITAL INVESTMENT CORPORATION,

	
    By:
	
 
	
/s/ Michael Pungello

	
 
	
 
	
Name: Michael Pungello

	
 
	
 
	
Title: Interim Chief Financial Officer

BCIC-MBS, LLC,

	
    By:
	
 
	
/s/ Michael Pungello

	
 
	
 
	
Name: Michael Pungello

	
 
	
 
	
Title: President

BKC ASW BLOCKER, INC.,

	
    By:
	
 
	
/s/ Michael Pungello

	
 
	
 
	
Name: Michael Pungello

	
 
	
 
	
Title: President

 

[Signature Page to Waiver (BlackRock Capital Investment Corporation)]

 

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CITIBANK, N.A., as Administrative Agent, Issuing Bank, Swingline Lender and Lender,

	
    By:
	
 
	
/s/ Michael Vondriska

	
 
	
 
	
Name: Michael Vondriska

	
 
	
 
	
Title: Vice President

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Waiver (BlackRock Capital Investment Corporation)]

 

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Lender signature page to the
Waiver to the
BlackRock Capital Investment Corporation Credit Agreement

 

To approve this Waiver:

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH

 

	
By:
	
 
	
/s/ Doreen Barr

	
 
	
 
	
Name: Doreen Barr

	
 
	
 
	
Title: Authorized Signatory

 

	
By:
	
 
	
/s/ Komal Shah

	
 
	
 
	
Name: Komal Shah

	
 
	
 
	
Title: Authorized Signatory

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Waiver (BlackRock Capital Investment Corporation)]

 

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Lender signature page to the
Waiver to the
BlackRock Capital Investment Corporation Credit Agreement

 

To approve this Waiver:

Name of Institution: 

DEUTSCHE BANK AG NEW YORK BRANCH

 

	
By:
	
 
	
/s/ Annie Chung

	
 
	
 
	
Name: Annie Chung (annie.chung@db.com)

	
 
	
 
	
Title: Director (+1-212-250-6375)

 

	
By:
	
 
	
/s/ Ming K. Chu

	
 
	
 
	
Name: Ming K. Chu (ming.k.chu@db.com)

	
 
	
 
	
Title: Director (+1-212-250-5451)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Waiver (BlackRock Capital Investment Corporation)]

 

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Lender signature page to the
Waiver to the
BlackRock Capital Investment Corporation Credit Agreement

 

To approve this Waiver:

HSBC Bank USA, N.A.

 

	
By:
	
 
	
/s/ Kieran Patel

	
 
	
 
	
Name: Kieran Patel

	
 
	
 
	
Title: Managing Director

 

 

For institutions requiring a second signature line:

 

			
	
By:
	
 
	
  

	
 
	
 
	
Name: 

	
 
	
 
	
Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Waiver (BlackRock Capital Investment Corporation)]

 

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Lender signature page to the
Waiver to the
BlackRock Capital Investment Corporation Credit Agreement

 

To approve this Waiver:

Name of Institution: Morgan Stanley Bank, N.A.

 

	
By:
	
 
	
/s/ David White

	
 
	
 
	
Name: David White

	
 
	
 
	
Title: Authorized Signatory

 

 

For institutions requiring a second signature line:

 

			
	
By:
	
 
	
  

	
 
	
 
	
Name: 

	
 
	
 
	
Title:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Waiver (BlackRock Capital Investment Corporation)]

 

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Lender signature page to the
Waiver to the
BlackRock Capital Investment Corporation Credit Agreement

 

To approve this Waiver:

Name of Institution: STATE STREET BANK AND TRUST COMPANY

 

	
By:
	
 
	
/s/ Pallo Blum-Tucker

	
 
	
 
	
Name: Pallo Blum-Tucker

	
 
	
 
	
Title: Managing Director

 

 

For institutions requiring a second signature line:

 

			
	
By:
	
 
	
  

	
 
	
 
	
Name: 

	
 
	
 
	
Title:

 

 

 

 

[Signature Page to Waiver (BlackRock Capital Investment Corporation)]

 

11EX-10.1

 Exhibit 10.1 
  

 
 HSBC BANK USA, NATIONAL ASSOCIATION 

452 Fifth Avenue 
 New York, New York 10018 

May 1, 2020 
 GRAHAM CORPORATION 

20 Florence Avenue 
 Batavia, New York 14020 

Ladies and Gentlemen: 
 HSBC Bank USA, National Association (the
“Bank”) is pleased to advise you that, subject to the terms and conditions set forth herein, we are prepared to extend to Graham Corporation, a Delaware corporation (the “Company”), an uncommitted discretionary demand line of
credit up to an aggregate amount of $14,000,000.00 to be used solely for Performance standby letters of credit (the “Facility”). 
 This letter
agreement amends and restates in its entirety that certain facility letter dated October 8, 2019, between the Company and Bank (the “Existing Line Letter”). Nothing in this letter agreement shall constitute a novation or a termination
of the obligations or liabilities under the Existing Line Letter. 
 The Facility. 

The Facility , is subject to the provisions set forth herein and in the Standard Trade Terms (as may be amended, restated, supplemented or otherwise modified
from time to time, the “STT”), which STT can be accessed, read and printed by Company at http://www.gbm.hsbc.com/gtrfstt or alternatively Company can request a copy of the STT from Company’s Relationship Manager at Bank. Any reference
to the “Customer” in the STT shall mean Company. By signing this agreement, Company acknowledges receipt of a copy of the STT and confirms that it has read, understood and accepted such terms and conditions. To the extent that any of the
terms of the STT (or any document replacing the STT) conflict with the provisions of this agreement then the terms of this agreement shall prevail. 

Additionally, each issuance of a letter of credit under the Facility shall be issued only pursuant to Bank’s standard form of application (the
“Application”). Company shall pay the fees specified in the pricing schedule set forth in Schedule A attached hereto and as applicable, quarterly in arrears, in immediately available funds, to Bank, together with Bank’s
customary fees and charges specified therein. 
 Each letter of credit shall have an expiry date (i) not later than twelve (12) months after such
letter of credit’s date of issuance and (ii) not to occur after the expiration date of the Facility, unless Bank has approved in writing such expiry date in its sole and absolute discretion; provided that (a) if the

  
 RESTRICTED 

 
expiry date of a letter of credit shall occur after the expiration date of the Facility, then within 60 days prior to the expiration date of the Facility (or such shorter period of time as Bank
may agree to in writing) or (b) if any LC Obligations (as defined hereinafter) remain outstanding for any reason after the termination or expiration of the Facility, then immediately (but in no event later than one (1) business day after
the termination or expiration of the Facility), Company shall either (in the case of clause (a) or (b), as applicable) (x) deliver to, and deposit with, Bank cash collateral in an amount equal to (i) 105% of the stated amount of such
letter of credit with respect to clause (a) above or (ii) 105% of the LC Obligations with respect to clause (b) above or (y) cause to be issued an irrevocable standby letter of credit in favor of Bank and issued by a bank or other
financial institution acceptable to Bank (in its sole discretion) and in form and substance, and in an amount, acceptable to Bank (in its sole discretion). Such cash collateral and deposits provided under this paragraph shall be held by Bank as
collateral for the payment and performance of the LC Obligations. Company hereby grants to Bank and agrees to maintain a first priority security interest in all such cash, deposits accounts and all balances therein and in all proceeds of the
foregoing to secure the LC Obligations and other obligations for which the cash collateral was so provided, free and clear of all other security interests and liens. Bank shall have exclusive dominion and control, including the exclusive right of
withdrawal, over such deposit account in which the cash collateral is maintained. “LC Obligations” as used herein shall mean, on any date of determination, the aggregate amount of the undrawn stated amount of all outstanding letters of
credit issued under the Facility, plus the aggregate amount drawn under letters of credit issued under the Facility for which Bank has not received payment or reimbursement. 

General Terms of the Facility. 
 Borrowings and any other
extensions of credit and obligations under the Facility shall be secured by secured Certificates of Deposit held by Bank. 
 The Facility is subject to
annual renewal by Bank in its sole and absolute discretion on July 31st of each year (or if such day is not a business day, then on the next business day thereafter provided, however, THE
CONTINUING AVAILABILITY OF THE FACILITY SHALL AT ALL TIMES BE AS DETERMINED BY BANK IN ITS SOLE AND ABSOLUTE DISCRETION. Either of Company or Bank may terminate all or any portion of the Facility at any time. In the event of termination by either
party, Company’s obligations hereunder and under the STT, the Note and the other documentation entered into in connection with the Facility shall remain in full force and effect until all amounts outstanding under the Facility have been
indefeasibly paid in full. 
 ANYTHING IN THIS AGREEMENT, THE NOTE OR ANY OTHER DOCUMENTS RELATING TO THE FACILITY TO THE CONTRARY NOTWITHSTANDING, THE
ENUMERATION IN THIS AGREEMENT, THE NOTE OR IN SUCH OTHER DOCUMENTS OF SPECIFIC OBLIGATIONS TO BANK AND/OR CONDITIONS TO THE AVAILABILITY OF THE FACILITY AND THE NOTE SHALL NOT BE CONSTRUED TO QUALIFY, DEFINE OR OTHERWISE LIMIT BANK’S RIGHT,
POWER OR ABILITY, AT ANY TIME, UNDER APPLICABLE LAW, TO MAKE DEMAND FOR PAYMENT OF THE ENTIRE OUTSTANDING PRINCIPAL OF, INTEREST AND OTHER AMOUNTS DUE UNDER THE FACILITY AND THE NOTE OR BANK’S RIGHT NOT TO MAKE ANY EXTENSION OF CREDIT UNDER THE
FACILITY AND COMPANY AGREES THAT COMPANY’S BREACH OF OR DEFAULT UNDER ANY SUCH ENUMERATED OBLIGATIONS OR CONDITIONS IS NOT THE ONLY BASIS FOR DEMAND TO BE MADE OR FOR A REQUEST FOR AN EXTENSION OF CREDIT TO BE DENIED, AS COMPANY’S
OBLIGATION TO MAKE PAYMENT SHALL AT ALL TIMES REMAIN A DEMAND OBLIGATION. 

  
 RESTRICTED 

 NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, THIS AGREEMENT DOES NOT CREATE A COMMITMENT OR
OBLIGATION BY BANK TO EXTEND CREDIT TO COMPANY AND COMPANY ACKNOWLEDGES THAT BANK HAS NO OBLIGATION TO EXTEND ANY CREDIT UNDER THE FACILITY. 
 So long as
any obligations, liabilities or other amounts payable under, arising from, or with respect to the Facility and the related documents shall remain unpaid and the Facility has not been terminated, Company shall furnish to Bank each of the following:

  

	 	i.	 Annual audited financial statements of Company, prepared on a consolidated basis, to be received within 120
days from fiscal year end; 

  

	 	ii.	 Prompt written notice of any default by Company that shall have occurred beyond any applicable grace period
under any other agreement between Company and Bank or any of Bank’s affiliates; and 

  

	 	iii.	 Such other information, including interim financial statements, concerning Company’s business, affairs, or
financial condition as Bank may request from time to time. 

 All payments of principal, interest and fees payable by Company under the
Facility shall be made in U.S. dollars, in immediately available funds without set off, counterclaim or withholding at Bank’s office at 452 Fifth Avenue, New York, New York 10018 and may be charged to any account Company maintains with Bank.

 The Facility is further subject to Bank’s receipt in form and substance satisfactory to Bank of the following, in each case, as applicable, duly
executed and delivered on behalf of Company by an authorized person thereof: 
  

	 	i.	 certified copy of resolutions of Company’s board of directors (or equivalent governing body) authorizing
Company’s execution, delivery and performance of this agreement, the Note and each of the other documents herein referred to; 

  

	 	ii.	 signature cards for Company’s authorized signatories; 

 

	 	iii.	 an executed copy of Bank’s standard form of Pledge Agreement; 

 

	 	iv.	 an executed copy of the Application(s) related to the Facility; 

 

	 	v.	 an executed copy of Bank’s standard form of Trade Finance Services Authorization related to the Facility;
and 

  

	 	vi.	 all other documents, instruments and other agreements or deliverables requested by Bank. 

No amendment, modification or waiver of any provision of this agreement nor any consent to any departure by Bank therefrom shall be effective, irrespective
of any course of dealing, unless the same shall be in writing and signed by Bank and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

Further, on the date hereof and on and as of the date any extension of credit is made under the Facility, Company makes the representations and warranties,
and agrees to the provisions, set forth on Schedule B attached hereto. Each request for an extension of credit under the Facility shall be deemed to be a certification by Company both at the time of such request and at the time the related
extension of credit is made that the representations and warranties contained on Schedule B are true and correct at each such time. 

  
 RESTRICTED 

 This agreement shall be governed by and construed in accordance with the laws of the State of New York.
Please note that to the extent any of the terms or provisions of this agreement conflict with those contained in the Note or any of the other above-mentioned documents (other than the STT), the terms and provisions of such Note and of such other
documents shall govern. 
 COMPANY AND BANK AGREE THAT ANY ACTION, SUIT OR PROCEEDING IN RESPECT OF OR ARISING OUT OF THIS AGREEMENT, THE NOTE OR ANY
OTHER DOCUMENTS RELATING TO THE FACILITY MAY BE INITIATED AND PROSECUTED IN THE STATE OR FEDERAL COURTS, AS THE CASE MAY BE, LOCATED IN NEW YORK COUNTY, NEW YORK. 

EACH OF COMPANY AND BANK HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY OR AGAINST IT IN ANY MATTERS WHATSOEVER, IN
CONTRACT OR IN TORT, ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE NOTE OR ANY OTHER DOCUMENTS RELATING TO THE FACILITY. COMPANY ALSO HEREBY WAIVES THE RIGHT TO INTERPOSE ANY DEFENSE BASED UPON ANY CLAIM OF LACHES OR SET-OFF OR COUNTERCLAIM OF ANY NATURE OR DESCRIPTION, ANY OBJECTION BASED ON FORUM NON CONVENIENS OR VENUE, AND ANY CLAIM FOR INDIRECT, CONSEQUENTIAL, PUNITIVE, INCIDENTAL, EXEMPLARY OR SPECIAL DAMAGES. 

Bank hereby notifies Company that pursuant to the requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism Act of 2001 (Pub. L. 107-56, 115 Stat. 272 (Oct. 26, 2001)) (the “USA Patriot Act”) and the requirements of 31 C.F.R. Sec. 1010.230 (the “Beneficial Ownership
Regulation”), Bank is required to obtain, verify and record information that identifies Company, which information includes the name, address and beneficial ownership of Company and other information that will allow Bank to identify Company in
accordance with the USA Patriot Act and the Beneficial Ownership Regulation, and Company agrees to provide such information and any applicable certifications from time to time to Bank. 

This agreement may be executed in counterparts, each of which shall constitute an original, but all of which when taken together shall constitute a single
contract. Delivery by a party of its executed signature page of this agreement, by telecopy, electronic transmission (e.g., a “pdf” or “tif” file transmitted by e-mail) or other electronic
means, shall be effective execution and delivery of this agreement by such party, the same as if an original manually executed counterpart were delivered by such party. 

[Remainder of page intentionally left blank] 

  
 RESTRICTED 

 If this agreement is acceptable to you, please sign and return this agreement and the other documents
referred to above within two weeks from the date of this agreement. 
  

			
	Very truly yours,
	
	HSBC Bank USA, National Association
		
	By:	 	/s/ Joseph W. Burden
	Name:	 	Joseph W. Burden
	Title:	 	VP

  

									
	AGREED TO AND ACCEPTED:	 		 		 	
			
	GRAHAM CORPORATION	 		 	 SIGNATURE VERIFICATION:

(For Bank use)

					
	By:	 	/s/ Jeffrey F. Glajch	 		 	By:	 	/s/ Joseph W. Burden
	Name:	 	Jeffrey F. Glajch	 		 	Name:	 	Joseph W. Burden
	Title:	 	Chief Financial Officer	 		 	Title:	 	VP

  
 RESTRICTED 

 SCHEDULE A 

Pricing* 
  

			
	Performance Standby	  	75 basis points per annum, if tenor is less than 24 months from the date of issuance through the maturity date, payable annually
		
		  	80 basis points per annum, if tenor is 25 to 48 months from the date of issuance through the maturity date, payable annually
		
		  	85 basis points per annum if tenor is over 48 months from the date of issuance through the maturity date, payable annually
		
		  	 •  Minimum commission of USD 500

		
	Annual Facility Fee	  	$5,000.00
		
	Default Interest	  	3% plus the Prime Rate

  

	*	 Please see Annex I to Schedule A, attached hereto, for other relevant fees. 

Pricing is subject to change upon thirty (30) days’ prior written notice to Company. 

Definitions: 
 “Performance Standby Letter of
Credit” means a letter of credit or similar arrangement, however named or described, other than a Financial Standby Letter of Credit, issued, confirmed or paid, or in respect of which value is transferred (including acceptance of a draft),
by Bank and/or an affiliate of Bank (or correspondent bank), for account of one or more applicants, that represents an irrevocable obligation to the beneficiary on the part of the issuer to make payment on account of any default by the account party
in the performance of a non-financial or commercial obligation. The determination that a letter of credit or similar arrangement is a Performance Standby Letter of Credit shall be made by Bank in its sole and absolute discretion. 

“Prime Rate” means the rate of interest publicly announced by Bank from time to time as its prime rate and is a base rate for calculating
interest on certain loans. In no event shall the interest rate under this agreement exceed the maximum rate authorized by applicable law. Any change in the interest rate resulting from a change in the Prime Rate shall be effective on the date of
such change. 

  
 RESTRICTED - 

 ANNEX I TO SCHEDULE A 

 

			
	

	  	GLOBAL TRADE AND RECEIVABLES FINANCE

 PRICING SCHEDULE 

 

			
	 IMPORT DOCUMENTARY CREDIT (LC)

	 DC Issuance: Manual
	  	0.25% per Qtr., Min $150
	 DC Issuance: Electronic
	  	0.25% per Qtr., Min $100
	 Issuance SWIFT
	  	$75
	 Amendment: Manual*
	  	$100
	 Amendment: Electronic*
	  	$85
	 Amendment: Increase / Extension
	  	0.25% per Qtr., Min $85/$100
	 Amendment SWIFT
	  	$45
	 Discrepancy**
	  	$100
	 Payment Commission:
	  	
	 Sight
	  	0.25%, Min $125
	 Payment Commission:
	  	
	 Time
	  	0.25%, Min $150
	 Acceptance / Deferred Payment
	  	2% Per Annum, Min $150
	 Reinstatement / Expired DC
	  	$100
	 Overdrawn DC
	  	$100
	 DC Cancellation / Unutilized
	  	$100
	 Special Handling**
	  	$50
	
	 EXPORT DOCUMENTARY CREDIT

	 Advise: Manual
	  	$125
	 Advise: Electronic
	  	$100
	 Amendment: Manual
	  	$100
	 Amendment: Electronic
	  	$75
	 Discrepancy
	  	$100
	 Document Examination / Payment Commission
	  	0.125%, Min $150
	 Discount
	  	By Agreement, Min $200
	 Confirmation
	  	By Agreement, Min $200
	 Acceptance / Deferred Payment Confirmation
	  	By Agreement, 2% P.A,
Min $150
	 Transfer
	  	0.25%, Min $300
	 Assignment of Proceeds
	  	0.25%, Min $300
	 Reimbursement
	  	$75
	 Back to Back Handling
	  	$250
	 DC Cancellation
	  	$100

  

	*	 More than five amendments subject to additional $50 Charge. 

	**	 To be charged to the account of the beneficiary.

			
	 STANDBY DOCUMENTARY CREDIT (SBLC)

	 Issuance: Manual
	  	$200
	 Issuance: Electronic
	  	$150
	 Issuance SWIFT
	  	$75
	 Commission
	  	By Agreement or 2% P.A.,
Min $500
	 Consultation / Structuring
	  	$500
	 Amendment: Manual
	  	$150
	 Amendment: Electronic
	  	$135
	 Amendment: Increase /
	  	
	 Extension
	  	By Agreement or 2% P.A.,
Min $100
	 Amendment SWIFT
	  	$45
	 Auto Increase / Decrease
	  	$100
	 Rescission of Draw
	  	$100
	 Confirmation
	  	By Agreement, Min $250
	 Payment Commission
	  	0.25%, Min $150
	 Transfer
	  	0.25%, Min $300
	 Assignment of Proceeds
	  	0.25%, Min $300
	 Advise
	  	$250
	 Amendment Advise
	  	$100
	 Cancellation
	  	$150
	 Evergreen
	  	$200
	
	 DOCUMENTARY COLLECTIONS

	 Import Collection
	  	0.125%, Min $100
	 Export Collection
	  	0.125%, Min $100
	 Direct Sends Collection
	  	$100
	 Bills Purchased
	  	By Agreement, Min $100
	 Protest Commission
	  	$150 + Costs
	 Document Safekeeping
	  	$50/Mo. after 30 days
	 Cancellation
	  	$100
	
	 MISCELLANEOUS CHARGES

	 Shipping Guarantee / Airway Release
	  	0.25%, Min $150
	 Unredeemed SG / AR
	  	$75 / Mo. after 30 days
	 Registered Mail
	  	$20
	 Courier: Domestic
	  	$30
	 Courier: International
	  	$100
	 SWIFT
	  	$50
	 Fax
	  	$15
	 Wire Transfer Fee
	  	$25
	 Urgent Handling
	  	$150

 
 

  
 Prices are subject to
change with notification. Additional fees may apply for non-standard service. 
 Effective as of August 2019 

  
 INTERNAL 

 SCHEDULE B 

Representations and Warranties 

Anti-money Laundering 
 Company represents and
warrants that each of Company and its subsidiaries is in compliance, in all material respects, with all applicable anti-money laundering rules and regulations. 

Sanctions 
 Company represents and warrants that
none of Company, any of its subsidiaries, or any director, officer, employee, agent, or affiliate of Company or any of its subsidiaries, is an individual or entity (“Person”) that is, or is owned or controlled by Persons that are:
(i) the target of any sanctions administered or enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control, the U.S. Department of State, the United Nations Security Council, the European Union, Her Majesty’s
Treasury, the Hong Kong Monetary Authority or other relevant sanctions authority (collectively, “Sanctions”) or (ii) located, organized or resident in a country or territory that is the target of Sanctions, including,
currently, the Crimea region, Cuba, Iran, North Korea and Syria. Company will not, directly or indirectly, use the proceeds of the Facility, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or
other Person, (i) to fund any activities or business of or with any Person, or in any country or territory, that, at the time of such funding, is the target of Sanctions, or (ii) in any other manner that would result in a violation of
Sanctions by any Person (including any Person participating in the Facility, whether as underwriter, advisor, investor, or otherwise). 
 Anti-Bribery
and Corruption 
 Company represents and warrants that none of Company, nor to the knowledge of Company, any director, officer, agent, employee,
affiliate or other Person acting on behalf of Company or any of its subsidiaries is aware of or has taken any action, directly or indirectly, that would result in a violation by such Persons of any applicable anti-bribery law, including but not
limited to, the United Kingdom Bribery Act 2010 (the “UK Bribery Act”) and the U.S. Foreign Corrupt Practices Act of 1977 (the “FCPA”). Furthermore, Company represents and warrants that Company and, to the knowledge
of Company, its affiliates have conducted their businesses in compliance with the UK Bribery Act, the FCPA and similar laws, rules or regulations and have instituted and maintain policies and procedures designed to ensure, and which are reasonably
expected to continue to ensure, continued compliance therewith. No part of the proceeds of the Facility will be used, directly or indirectly, for any payments that could constitute a violation of any applicable anti-bribery law. 

USA Patriot Act and Beneficial Ownership Regulation 

Company represents and warrants that any information, documentation or certification provided by Company as required by the USA Patriot Act, the Beneficial
Ownership Regulation or any other anti-money laundering rules and regulations is true and correct in all respects. 

  
 RESTRICTED

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