Document:

Exhibit 10.1

 

THIRD AMENDMENT TO LOAN AGREEMENT

 

THIS THIRD AMENDMENT
TO LOAN AGREEMENT (the “Amendment”) dated as of January 31, 2013 (the “Effective Date”) is
made by and between BMO HARRIS BANK N.A., a national bank, as successor by merger to M&I
Marshall & Ilsley Bank (“Lender”), and AEROSONIC CORPORATION, a Delaware corporation (“Borrower”).

 

WITNESSETH

 

WHEREAS, Borrower and
Lender entered into that certain Loan Agreement dated April 30, 2010 as amended by that certain (i) First Amendment to Loan Agreement
dated January 6, 2011; (ii) Joint Amendment to Loan Agreement and Revolving Line of Credit Note dated April 29, 2011; (iii) Joint
Amendment to Loan Agreement and Revolving Line of Credit Note dated June 27, 2011; and (iv) Second Amendment to Loan Agreement
dated September 26, 2011 (as may be further amended, restated, modified or supplemented and in effect from time to time, the “Loan
Agreement”). Capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Loan
Agreement.

 

WHEREAS, pursuant to
the Loan Agreement, Borrower issued to Lender that certain (i) Amended and Restated Revolving Line of Credit Note dated September
26, 2011 in the original principal amount of Four Million Five Hundred Thousand and No/100 Dollars ($4,500,000) as amended by that
certain First Amendment to Amended and Restated Revolving Line of Credit Note dated June 27, 2012 (as may be further amended, restated,
modified or supplemented and in effect from time to time, the “Revolving Line of Credit Note”); (ii) Interest
Bearing Installment Note (Real Estate) dated April 30, 2010 in the original principal amount of Three Million Five Hundred Thousand
and No/100 Dollars ($3,500,000) (as may be amended, restated, modified or supplemented and in effect from time to time, the “Real
Estate Installment Note”); (iii) Interest Bearing Installment Note (Equipment) dated April 30, 2010 in the original principal
amount of One Million Nine Hundred Thousand and No/100 Dollars ($1,900,000) (as may be amended, restated, modified or supplemented
and in effect from time to time, the “Term Note”); and (iv) Equipment Line of Credit Note dated April 30, 2010
in the original principal amount of Seven Hundred Thousand and No/100 Dollars ($700,000) (as may be amended, restated, modified
or supplemented and in effect from time to time, the “Equipment Note,” collectively with the Revolving Line
of Credit Note, Real Estate Installment Note and Term Note, the “Notes”).

 

WHEREAS, to secure
Borrower’s payment of the Notes and Borrower’s performance under the Loan Agreement, Borrower, among other things,
executed and delivered to Lender that certain (i) Mortgage, Security Agreement and Assignment of Rents dated April 30, 2010, recorded
in the Official Records of Pinellas County, Florida at O.R. Book 16909 Pages 2344-2362 (the “Mortgage”), whereby
Borrower granted a security interest in the real and personal property described therein to Lender; (ii) Collateral
Assignment of Rents and Leases dated April 30, 2010, recorded in the Official Records of Pinellas County, Florida at O.R.
Book 16909 Pages 2363-2369 (the “Collateral Assignment”), whereby Borrower
granted a security interest in the rents and leases described therein to Lender; (iii) Security Agreement
dated April 30, 2010 (the “Security Agreement”), whereby Borrower granted a security interest in the personal
property more particularly described therein to Lender; and (iv) Negative Pledge Agreement dated April 30, 2010, recorded
in the Official Records of Albemarle County, Virginia at O.R. Book 3879 Pages 601-607 (the “Negative Pledge”),
whereby Avionics Specialties, Inc., a wholly-owned subsidiary of Borrower, agreed not to grant a lien on, or otherwise encumber
or transfer, the real property described therein.

 

WHEREAS, to further
secure Borrower’s payment of the Notes and Borrower’s performance under the Loan Agreement, Avionics Specialties, Inc.,
a Virginia corporation, and OP Technologies, Inc., an Oregon corporation, each a wholly-owned subsidiary of Borrower (each a “Guarantor”
and collectively, the “Guarantors”), each executed and delivered an unconditional Guaranty Agreement dated April
30, 2010 guarantying payment and performance by Borrower of all obligations evidenced by the Notes and Loan Agreement (such guarantees
collectively referred to herein as the “Guaranty”).

 

    	 

    	 	

    
 

WHEREAS, to secure
Guarantor’s obligations and performance under the Guaranty, each Guarantor, among other things, executed and delivered to
Lender that certain Security Agreement dated April 30, 2010 (the “Guarantor Security Agreement”)
granting Lender a security interest in certain collateral more particularly described therein. The Loan Agreement, Notes,
Mortgage, Collateral Assignment, Security Agreement, Negative Pledge, Guaranty, Guarantor Security Agreement and any and all other
documents or instruments executed in connection therewith shall be referred to herein as the “Loan Documents.”

 

WHEREAS, as of January
31, 2013, the aggregate outstanding principal balance of the Notes is $4,891,982.49.

 

WHEREAS,
Borrower wishes to renew and extend the maturity dates of the Revolving Line of Credit Note, Real Estate Installment Note and Term
Note, and to make certain other modifications to the Loan Agreement, and although Lender is under no obligation to do so,
Lender is willing to renew and extend the maturity dates of the Revolving Line of Credit Note, Real
Estate Installment Note and Term Note and make certain modifications to the Loan Agreement under the terms and conditions
set forth herein.

 

NOW, THEREFORE, in
consideration of the execution and delivery of this Amendment and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

AGREEMENT

 

1.Recitals.
The parties hereto hereby affirm all recitals and statements above as true and correct and hereby incorporate such recitals into
this Amendment.

 

2.Renewal
of Revolving Line of Credit. The Lender agrees to renew the Revolving Line of Credit. The Revolving
Line of Credit shall be evidenced by the Renewal Revolving Line of Credit Note, the form of which is attached hereto as Exhibit
“A”. The parties hereby acknowledge and agree that the Renewal Revolving Line of Credit Note shall constitute a
“Loan Document” under the Loan Agreement and the other Loan Documents and any reference to the Revolving Line of Credit
Note in the Loan Agreement and other Loan Documents shall mean and include the Renewal Revolving Line of Credit Note.

 

3.Renewal
of Real Estate Loan. The Lender agrees to extend the maturity date of the Real Estate Loan. The
Real Estate Loan shall be evidenced by the Renewal Interest Bearing Installment Note (Real Estate) in the original principal amount
of Two Million Eight Hundred Seventy-Seven Thousand Seven Hundred Seventy-Seven and 92/100 Dollars ($2,877,777.92) (the “Renewal
Real Estate Installment Note”), the form of which is attached hereto as Exhibit “B”. The parties hereby
acknowledge and agree that the Renewal Real Estate Installment Note shall constitute a “Loan Document” under the Loan
Agreement and the other Loan Documents and any reference to the Real Estate Installment Note in the Loan Agreement and other Loan
Documents shall mean and include the Renewal Real Estate Installment Note.

 

    	 

    	 	

    
 

4.Renewal
of Term Loan. The Lender agrees to extend the maturity date of the Term Loan. The Term Loan shall
be evidenced by the Renewal Interest Bearing Installment Note (Equipment) in the original principal amount of Eight Hundred Eighty-Six
Thousand Six Hundred Sixty-Six and 88/100 Dollars ($886,666.88) (the “Renewal Term Note”), the form of which
is attached hereto as Exhibit “C”. The parties hereby acknowledge and agree that the Renewal Term Note shall
constitute a “Loan Document” under the Loan Agreement and the other Loan Documents and any reference to the Term Note
in the Loan Agreement and other Loan Documents shall mean and include the Renewal Term Note.

 

5.Amendment
to Section 1.2 of the Loan Agreement. Section 1.2 of the Loan Agreement is hereby amended so that,
from and after the Effective Date, it shall read as follows:

 

““Borrowing
Base” means the lesser of (a) the Revolving Credit Limit or (b) the sum of (i) up to eighty percent (80%) of the aggregate
amount of Eligible Accounts; plus (ii) eighty percent (80%) of the aggregate amount of Finished Goods Inventory; plus (iii) fifty
percent (50%) of the aggregate amount of Raw Materials Inventory, with the aggregate total inventory of (ii) and (iii) not to exceed
Two Million Seven Hundred Fifty Thousand and No/100 Dollars ($2,750,000).”

 

6.Amendment
to Section 1.32 of the Loan Agreement. Section 1.32 of the Loan Agreement is hereby amended so that,
from and after the Effective Date, it shall read as follows:

 

““Notes”
means the Renewal Revolving Line of Credit Note, Renewal Real Estate Installment Note, Renewal Term Note and the Equipment Line
of Credit Note, as each may be amended, restated, renewed, modified or supplemented and in effect from time to time.”

 

7.Amendment
to Section 2.2 of the Loan Agreement. Section 2.2 of the Loan Agreement is hereby amended so that,
from and after the Effective Date, it shall read as follows:

 

“Availability
Period. The Revolving Line of Credit is available between the date of this Agreement and January
31, 2016 (the “RLOC Availability Period”), unless Borrower is in default under this Agreement. Any amount of
principal repaid by Borrower during the RLOC Availability Period may again be borrowed by Borrower, provided that the aggregate
principal balance outstanding at any time does not exceed the Revolving Credit Limit, subject at all times to the Borrowing Base
limitation imposed in Section 2.3 of this Agreement.”

 

8.Amendment
to Section 2.4 of the Loan Agreement. Section 2.4 of the Loan Agreement is hereby amended so that,
from and after the Effective Date, it shall read as follows:

 

“Interest
Rate. Interest on the Revolving Line of Credit shall accrue at a rate per year equal to the
One Month BBA LIBOR plus 3.00 percentage point(s).”

 

9.Amendment
to Section 2 of Loan Agreement; New Section 2.7. The Loan Agreement is hereby amended to add a new
section 2.7, so that, from and after the Effective Date, it shall read as follows:

 

“2.7Unused
Commitment Fee. Borrower agrees to pay Bank a fee equal to twenty-five (25) basis points on any difference between the Revolving
Credit Limit and the amount of credit it actually uses, determined by the daily amount of credit outstanding during the specified
period. The fee will be calculated quarterly and is due in arrears commencing on June 30, 2013 (for the quarter ended March 31,
2013) and on the last day of each following quarter until the expiration of the RLOC Availability Period.”

 

10.Amendment
to Section 3.2 of the Loan Agreement. Section 3.2 of the Loan Agreement is hereby amended so that,
from and after the Effective Date, it shall read as follows:

    	 

    	 	

    
 

“Interest
Rate. Interest on the Real Estate Loan shall accrue at a rate per year equal to the One Month
BBA LIBOR plus 3.40 percentage point(s).”

 

11.Amendment
to Section 4.2 of the Loan Agreement. Section 4.2 of the Loan Agreement is hereby amended so that,
from and after the Effective Date, it shall read as follows:

 

“Interest
Rate. Interest on the Term Loan shall accrue at a rate per year equal to the One Month BBA
LIBOR plus 3.40 percentage point(s).”

 

12.Amendment
to Section 12.1 of the Loan Agreement. Section 12.1 of the Loan Agreement is hereby amended so that,
from and after the Effective Date, it shall read as follows:

 

“Financial
Information. At all times that any debt, liability or obligation is owed to the Bank by Borrower under this Agreement or any
of the other Loan Documents, unless the Bank otherwise consents in writing, Borrower will maintain for itself a system of accounting
established and administered in accordance with GAAP, consistently applied, and will furnish to the Bank:

 

(a)Within
one hundred eighty (180) days of the fiscal year end, the annual financial statements of Borrower, certified and dated by a Responsible
Officer. These financial statements must be audited (with an opinion reasonably satisfactory to the Bank) by Mayer Hoffman McCann,
P.C., or such other Certified Public Accountant acceptable to the Bank. The statements shall be prepared on a consolidated basis.

 

(b)Within
forty-five (45) days after the end of each fiscal quarter, quarterly financial statements of Borrower certified and dated by a
Responsible Officer. These financial statements must be reviewed by Mayer Hoffman McCann, P.C., or such other Certified Public
Accountant acceptable to the Bank. The statements shall be prepared on a consolidated basis.

 

(c)Copies
of the Form 10-K Annual Report, Form 10-Q Quarterly Report, and any Form 8-K Current Report within ten (10) days after the date
of filing with the SEC.

 

(d)Within
twenty (20) days after the end of each calendar month, Borrower shall deliver to the Bank a duly completed borrowing base certificate
in the form and substance satisfactory to the Bank as of the last day of such calendar month certifying Borrower’s compliance
with Section 2.3 of this Agreement and an aging schedule of its accounts receivable and accounts payable, each in a form and detail
acceptable to the Bank and certified by a Responsible Officer.

 

(e)Within
forty-five (45) days after the end of each fiscal quarter, a compliance certificate of Borrower executed by a Responsible Officer
and setting forth (i) the information and computations (in sufficient detail) to establish that the Borrower is in compliance with
all financial covenants set forth in Section 12.2 at the end of the period covered by the financial statements then being furnished
and (ii) whether there existed as of the date of such financial statements and whether there exists as of the date of the certificate,
any default under this Agreement and, if any such default exists, specifying the nature thereof and the action the Borrower is
taking and propose to take with respect thereto.

 

(f)Each
financial statement provided to the Bank pursuant to this Section 12.1 shall be accompanied by a certification by a Responsible
Officer of Borrower certifying that to his knowledge no Event of Default has occurred under this Agreement or, if an Event of Default
has occurred, specifying such default with detail.

    	 

    	 	

    
 

(g)Such
other information, including non-financial information, as the Bank may from time to time reasonably request.”

 

13.Amendment
to Section 12.2(a) of the Loan Agreement. Section 12.2(a) of the Loan Agreement is hereby amended
so that, from and after the Effective Date, it shall read as follows:

 

“Total
Stockholders’ Equity. To maintain on a consolidated basis Total Stockholders’ Equity equal to at least Eight Million
Seven Hundred Fifty-Nine Thousand One Hundred and No/100 Dollars ($8,759,100), which amount shall increase on a quarterly basis
in an amount equal to ninety percent (90%) of Borrower’s net income (calculated on a consolidated basis) for such quarter.
This amount shall be calculated at the end of each quarterly reporting period for which Bank requires financial statements.”

 

14.Amendment
to Section 12.2(b) of the Loan Agreement. Section 12.2(b) of the Loan Agreement is hereby amended
so that, from and after the Effective Date, it shall read as follows:

 

“Funded
Debt to EBITDA. To maintain on a consolidated basis a ratio of Funded Debt to EBITDA not exceeding 3.0:1.0. This ratio shall
be calculated at the end of each quarterly reporting period for which the Bank requires financial statements, using the results
of the twelve-month period ending with the last day of that reporting period.”

 

15.Conditions
to Effectiveness. This Amendment shall become effective as of the Effective Date upon Lender receiving the following items,
in form and content acceptable to Lender in its sole discretion:

 

15.1
Lender shall receive counterpart originals of this Amendment executed by all parties listed on the signature page(s) hereto
and originals or certified or other copies of such other documents as the Lender may reasonably request.

 

15.2
Lender shall have received the original duly executed Renewal Revolving Line of Credit Note, Renewal Real Estate Installment
Note and Renewal Term Note.

 

15.3
Lender shall have received the original Modification of Mortgage, Security Agreement and Assignment of Rents in the form attached
hereto as Exhibit D.

 

15.4
A certificate of the Secretary of State from the state of organization of Borrower and each Guarantor, dated as of a date not
more than five (5) business days before the Effective Date, with respect to the good standing of Borrower and each Guarantor, and
of the Secretary of State or equivalent official of each other jurisdiction where Borrower and each Guarantor is qualified to do
business as a foreign entity, dated not more than five (5) business days before the Effective Date, with respect to such qualification
and the good standing of Borrower and Guarantor in such jurisdiction.

 

15.5
Lender shall receive evidence that the execution, delivery and performance by Borrower of this Amendment and any instrument
or agreement required under this Amendment have been duly authorized.

 

    	 

    	 	

    
 

16.Representations,
Warranties and Covenants. By executing this Amendment, Borrower represents and warrants to Lender that (a) there is no event
which is, or with notice or lapse of time or both would be, a default under the Loan Agreement, the Notes or the Loan Documents
except for those events, if any, that have been disclosed in writing to Lender or waived in writing by Lender; (b) the representations
and warranties in the Loan Agreement are true as of the date of this Amendment as if made on the date hereof; (c) the financial
statements and other financial information most recently provided to Lender are correct and complete in all material respects and
fairly represent the financial condition of Borrower as at the date thereof and fairly represent the results of the operations
of Borrower for the period covered thereby; (d) there has been no material adverse change in the business, properties, or condition,
financial or otherwise, of Borrower since the date of such financial statements or other information; (e) this Amendment does not
conflict with any law, agreement, or obligation by which Borrower is bound; and (f) this Amendment is within Borrower’s powers,
has been duly authorized, and does not conflict with any of Borrower’s organization papers.

 

17.Reaffirmation
and Confirmation. Borrower hereby (a) acknowledges and reaffirms its obligations as set forth in the Loan Documents; (b) agrees
to continue to comply with, and be subject to, all of the terms, provisions, conditions, covenants, agreements and obligations
set forth in the Loan Documents, each of which remains in full force and effect; and (c) confirms, ratifies and reaffirms that
the security interest granted to Lender in the Collateral pursuant to the Loan Documents in order to secure Borrower’s prompt
payment of the Notes and Borrower’s performance under the Loan Documents, is continuing and is and shall remain unimpaired
and shall continue to constitute a first priority security interest (subject to Permitted Liens) in favor of Lender, with the same
force, effect and priority in effect both immediately prior to and after entering into this Amendment. Lender’s security
interest in and to the Collateral has attached and continues to attach to all such Collateral and no further act on the part of
Lender is necessary to continue such security interest. Should any term or provision of the Loan Agreement, Notes or other Loan
Documents conflict with the terms or provisions contained in this Amendment, the terms and provisions of this Amendment shall be
controlling. This Amendment is not intended to be, nor shall it be construed to be, a novation or an accord and satisfaction of
any other obligation or liability of Borrower to Lender.

 

18.Fees
and Costs. Contemporaneous with the execution of this Amendment, Borrower shall pay to the Lender
(a) a renewal fee equal to Thirty Thousand and No/Dollars ($30,000); and (b) all costs, expenses and attorneys’ fees incurred
by Lender in connection with this Amendment.

 

19.Counterparts.
This Amendment may be executed in any number of counterparts and by the different parties on separate counterparts. Each such counterpart
shall be deemed to be an original, but all such counterparts shall together constitute one and the same agreement.

 

20.FINAL
AGREEMENT. This written Amendment represents the final agreement between and among the parties hereto and may not
be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements between or among the parties. There are no
unwritten oral agreements between or among the parties.

 

[SIGNATURES ON
FOLLOWING PAGE]

 

     

     

    

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

 

	
        LENDER:

         

        BMO HARRIS BANK N.A.

         

         

        By: ______________________________

        Its: ______________________________

        Name: ___________________________

         

         

         

         
	
        BORROWER:

         

        AEROSONIC CORPORATION

         

         

        By: ______________________________

        Its: ______________________________

        Name: ___________________________

	 	 
	 	 

 

 

 

Signature page to Third
Amendment to Loan Agreement

 

 

 

 

     

     

    

CONSENT AND REAFFIRMATION
OF GUARANTORS

 

The undersigned, each
a guarantor of Borrower’s obligations to Lender pursuant to the Guaranty executed by the undersigned in favor of Lender,
hereby (i) acknowledges and consents to the execution, delivery, and performance by Borrower of the foregoing Third Amendment to
Loan Agreement; (ii) warrants and covenants to Lender that, except to the extent previously disclosed to Lender in writing, all
representations and warranties previously made by Guarantor to Lender are true, complete, and accurate as of the date of this Consent
and Reaffirmation of Guarantors; and (iii) reaffirms and agrees that the Guaranty to which the undersigned is party and all other
documents and agreements executed and delivered by either the undersigned or Borrower to Lender in connection with the indebtedness
represented by the Notes (including, without limitation, the Renewal Revolving Line of Credit Note, Renewal Real Estate Installment
Note and Renewal Term Note), the Loan Agreement and Loan Documents are all in full force and effect, without defense, offset, or
counterclaim, or alternatively, that any such right of defense, offset or counterclaim is hereby expressly waived.

 

IN WITNESS WHEREOF,
the undersigned has duly consented to the Third Amendment to Loan Agreement by execution and delivery to Lender of this Consent
and Reaffirmation of Guarantors as of the day and year first above written.

 

	 	 
	 	GUARANTORS:
	 	 
	 	 
	 	AVIONICS SPECIALTIES, INC.
	 	 
	 	 
	 	By: ____________________________
	 	Name: __________________________
	 	Its: ____________________________
	 	 
	 	 
	 	 
	 	OP TECHNOLOGIES, INC.
	 	 
	 	By: ____________________________
	 	Name: __________________________
	 	Its: ____________________________

 

     

     

    

International
Waters Closing Affidavit

 

BEFORE ME, the undersigned,
a licensed captain of the ____________________________, personally appeared ____________________________ an officer of BMO Harris
Bank N.A., a national bank, as successor by merger to M&I Marshall
& Ilsley Bank (the “Lender”), and ____________________________, the ____________________________
of Aerosonic Corporation, a Delaware corporation (the “Borrower”), who, being by me first duly sworn, stated:

1.On the
date hereof, Borrower executed that certain (a) Third Amendment to Loan Agreement dated January 31, 2013
(the “Amendment”), (b) Renewal Revolving Line of Credit Note dated January 31, 2013 (“Renewal
Revolving Line of Credit Note”), and (c) Renewal Interest Bearing Installment Note (Equipment)
dated January 31, 2013 (“Renewal Term Note”), at a latitude of ____________________________ and longitude
of ____________________________, which is not located in Florida territorial waters.

 

2.Borrower
personally delivered the Amendment, Renewal Revolving Line of Credit Note and Renewal Term Note to the Lender, and Lender accepted
the Amendment, Renewal Revolving Line of Credit Note and Renewal Term Note on the date hereof on the ____________________________,
at a latitude of ____________________________ and longitude of ____________________________, which is not located in Florida territorial
waters.

 

DATED this ___ day of
______________, 2013.

 

 

	
        AEROSONIC CORPORATION

         

        By:_______________________________________

        Its:_______________________________________

        Name:____________________________________
	
        BMO HARRIS BANK N.A.

         

        By:_______________________________________

        Its:_______________________________________

        Name:____________________________________

         

	 	 

 

 

SWORN to and subscribed
before me this ___ day of ______________, 2013, a licensed captain.

 

 

________________________________________

Print Name:______________________________

Title:____________________________________

     

     

    

EXHIBIT A

 

Form of Renewal
Revolving Line of Credit Note

 

 

 

 

 

See attached.

 

     

     

    

EXHIBIT B

 

Form of Renewal
Real Estate Installment Note

 

 

 

 

 

See attached.

 

     

     

    

EXHIBIT C

 

Form of Renewal
Term Note

 

 

 

 

 

See attached.

 

     

     

    

EXHIBIT D

 

Form of Modification
of Mortgage, Security Agreement and Assignment of Rents

 

 

 

 

 

See attached.eXHIBIT
10.2

 

 

RENEWAL
Revolving Line of Credit Note

 

	$4,000,000.00	January 31, 2013
	 	 

1.Promise
to Pay.

 

For
Value Received, the undersigned, AEROSONIC CORPORATION, a Delaware corporation (the “Borrower”),
promises to pay to the order of BMO HARRIS BANK N.A., a national bank, as successor by merger to M&I
Marshall & Ilsley Bank (the “Bank”), in lawful money of the United States of America, in
immediately available funds, at the office of the Bank at 501 East Kennedy Boulevard, Suite 900, Tampa, Florida 33602, or at
such other location as the Bank may designate from time to time, the principal amount of FOUR MILLION AND NO/100 Dollars ($4,000,000),
or so much thereof as may be advanced under this note and remain outstanding from time to time, together with interest
thereon, as described in this Renewal Revolving Line of Credit Note (the “Note”). This Note represents a
renewal, amendment and restatement of that certain Amended and Restated Revolving Line of Credit Note dated September 26,
2011 issued by Borrower to Bank in the original principal amount of Four Million Five Hundred Thousand and No/100 Dollars
($4,500,000.00), and does not, and is not intended to, constitute a novation of the indebtedness evidenced by such
note.

 

2.Revolving
Line of Credit.

 

This Note evidences
a revolving line of credit. Provided that no Event of Default shall exist or be continuing, proceeds may be disbursed by the Bank
to Borrower under this Note, repaid by Borrower, and reborrowed by Borrower under this Note until the Maturity Date, but the maximum
total principal amount outstanding under this Note at any one time shall never exceed the lesser of (x) the Revolving Credit Limit
or (y) the Borrowing Base. All revolving credit loans made pursuant to this Note and all payments and prepayments on account of
the principal and interest thereof may be recorded by the Bank on its internal loan account ledger, which account statements, absent
manifest error, shall be conclusive and binding on Borrower but failure of the Bank to make any such recordation does not limit
or otherwise affect the obligations of Borrower under this Note or any of the other Loan Documents.

 

3.Maturity
Date.

 

The “Maturity
Date” for purposes of this Note is January 31, 2016.

 

4.Loan
Agreement; Loan Documents.

 

This Note is delivered
pursuant and subject to the terms of that certain Loan Agreement dated April 30, 2010 as amended by that certain (i) First Amendment
to Loan Agreement dated January 6, 2011; (ii) Joint Amendment to Loan Agreement and Revolving Line of Credit Note dated April 29,
2011; (iii) Joint Amendment to Loan Agreement and Revolving Line of Credit Note dated June 27, 2011; (iv) Second Amendment to Loan
Agreement dated September 26, 2011; and (v) Third Amendment to Loan Agreement dated as of even date hereof (as may be further amended,
restated, modified or supplemented and in effect from time to time, the “Loan Agreement”), and payment and performance
under this Note is secured by, among other things, the Security Agreement, Mortgage, Collateral Assignment, Negative Pledge, Guaranty,
and Guarantor Security Agreement executed and delivered pursuant to the Loan Agreement. Capitalized terms not otherwise defined
herein shall have the meanings assigned to such terms in the Loan Agreement.

 

    	 

    	 	

    
  

5.Interest
Prior to Default.

 

Prior to an Event of
Default, commencing on the date of this Note and continuing through and including the Maturity Date, interest shall accrue on the
outstanding principal balance of this Note at the rate specified in the Loan Agreement.

 

6.Default
Rate of Interest.

 

From and after the
Maturity Date or upon the occurrence and during the continuance of an Event of Default, interest shall accrue on the balance of
principal remaining unpaid during any such period at the default rate specified in the Loan Agreement.

 

7.Payment
Terms.

 

Payments of principal
and interest due under this Note, if not sooner declared to be due in accordance with the provisions of this Note, shall be due
and payable as follows:

 

7.1Payment
of Interest. Commencing February 1, 2013, and continuing on the same day of each and every calendar month thereafter through
and including the month in which the Maturity Date occurs, payments of accrued and unpaid interest on the principal balance of
this Note outstanding from time to time shall be due and payable in full.

 

7.2Payment
of Principal. The unpaid principal balance of this Note, together with all accrued and unpaid interest payable thereon, and
any other amounts due and payable by Borrower under this Note or under any of the other Loan Documents, shall be due and payable
in full upon the Maturity Date.

 

8.Late
Payment Charge.

 

If any payment of interest
or principal due under this Note prior to the Maturity Date is not made within fifteen (15) days after such payment is due in accordance
with this Note, then, in addition to the payment of the amount due, Borrower shall pay to the Bank a “late charge”
in an amount equal to five percent (5%) of the amount so overdue to defray part of the cost to the Bank of collection and handling
such late payment. The imposition or collection of any late charge pursuant to this section does not constitute and shall not be
deemed to constitute a waiver by the Bank of any of its rights and remedies under this Note or any of the other Loan Documents.

 

9.Maximum
Amount of Interest.

 

Nothing herein, nor
any transaction related hereto, shall be construed to operate so as to require Borrower to pay interest at a greater rate than
shall be lawful. Should any interest or other charges paid by Borrower in connection with the loan evidenced by this Note result
in computation or earning of interest in excess of the maximum contract rate of interest which is legally permitted under applicable
Florida law or federal preemption statute, then any and all such excess is hereby waived by the Bank and shall be automatically
credited against and in reduction of the balance due hereunder, and any portion which exceeds such balance shall be paid by the
Bank to Borrower. Anything contained herein to the contrary notwithstanding, if for any reason the effective rate of interest on
this Note should exceed the maximum lawful rate, the effective rate shall be deemed reduced to and shall be such maximum lawful
rate. To the extent permitted by the law, all sums paid or agreed to be paid to the Bank for the use, forbearance or detention
of the indebtedness evidenced by this Note shall be amortized, prorated, allocated and spread throughout the full term of this
Note. When determining the maximum legal contract rate of interest allowed to be contracted for by applicable law as changed from
time to time, unless otherwise prescribed by law, interest shall be calculated on the basis of a three hundred sixty-five (365)
or three hundred sixty-six (366) day year, as the case may be, as compared to the payment rate which is computed on a three hundred
sixty (360) day year for actual days elapsed.

 

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10.Prepayment.

 

This Note may be prepaid
in whole or in part at any time without penalty.

 

11.Event
of Default; Remedies.

 

The Bank has the right
to declare the total unpaid principal balance and all accrued but unpaid interest payable under this Note to be immediately due
and payable upon the occurrence of an Event of Default under the Loan Agreement.

 

 

Exercise of this right
shall be without notice to Borrower, notice of such exercise being hereby expressly waived. In addition to the right to declare
the total unpaid principal balance and all accrued but unpaid interest payable under this Note to be due and payable in full in
advance of the Maturity Date, upon the occurrence of an Event of Default, the Bank has and may exercise all other rights and remedies
available by law, statute, agreement or in equity.

 

12.Cumulative
Remedies.

 

The remedies of the
Bank under this Note are cumulative and concurrent and may be pursued singularly, successively or together, at the sole discretion
of the Bank, and may be exercised as often as occasion therefor may arise. No act of omission or commission of the Bank, including
specifically any failure to exercise any right, remedy or recourse, shall be deemed to be a waiver or release of the same, such
waiver or release to be effected only through a written instrument executed by the Bank, and then only to the extent specifically
recited therein. A waiver or release with reference to any one event shall not be construed as continuing, as a bar to, or as a
waiver or release of, any subsequent right, remedy or recourse as to any subsequent event.

 

13.Attorney’s
Fees.

 

Should it become necessary
to collect this Note through an attorney, Borrower shall pay all costs incurred by or accruing to the Bank in making such collection,
including a reasonable attorney’s fee. Reasonable attorney’s fees shall include, without limitation, all fees incurred
in all matters of collection and enforcement, construction and interpretation, before, during and after trial proceedings and appeals,
as well as appearances in, and connected with, any bankruptcy proceeding or creditors’ reorganization or similar proceeding.

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14.Waivers.

 

Borrower, and all natural
persons, entities, and other persons now or at any time liable, whether primarily or secondarily, for the payment of the indebtedness
evidenced by this Note, without in any way modifying, altering, releasing, affecting or limiting their respective liability or
the lien of any security instrument, for themselves, their respective heirs, legal, and personal representatives, successors and
assigns, jointly and severally: (a) waive presentment, demand for payment, notice of dishonor, protest, notice of nonpayment or
protest, and diligence in collection; (b) except as expressly provided in the Loan Documents, waive any and all notices in connection
with the delivery and acceptance of this Note, and all notices in connection with the performance, default, or enforcement of the
payment of this Note; (c) waive any and all lack of diligence and delays in the enforcement of this Note; (d) agree that the liability
of Borrower, each guarantor, endorser or obligor shall be unconditional and without regard to the liability of any other person
or entity for the payment of this Note and shall not in any manner be affected by any indulgence or forbearance granted or consented
to by Bank to any of them with respect to this Note; (e) consent to any and all extensions of time, renewals, waivers, or modifications
that may be granted by Bank with respect to the payment or other provisions of this Note, and to the release of any security at
any time given for the payment of this Note, or any part of this Note, with or without substitution, and to the release of any
person or entity liable for the payment of this Note; (f) consent to the addition of any and all other makers, endorsers, guarantors
and other obligors for the payment of this Note, and to the acceptance of any and all other security for the payment of this Note,
and agree that the addition of any such makers, endorsers, guarantors or other obligors, or security shall not affect the liability
of Borrower, any guarantor, or any other person now or at any time liable for all or any part of the obligations evidenced by this
Note; and (g) agree that Bank, in order to enforce payment of this Note, shall not be required first to institute any suit or to
exhaust any of its remedies against Borrower or any other person to become liable hereunder.

 

15.Other
Provisions.

 

15.1Set-Off.
Bank has the right to set off any indebtedness or obligations of Borrower to the Bank under this Note in accordance with the terms
of the Loan Agreement.

 

15.2Banking
Days. If any payment of principal or interest is due or the Maturity Date falls on a Saturday, Sunday or on any other day on
which banks in Tampa, Florida are not open for business, such payment shall be made on the immediately preceding business day.

 

15.3Payment
Application. All payments received by the Bank under this Note shall be applied first to unpaid interest and other charges
payable by Borrower, and second to the principal balance hereof.

 

15.4Successors
and Assigns. This Note shall bind Borrower and its successors and assigns, and the benefits of this Note shall inure to the
benefit of the Bank and its successors and assigns, including any holder of this Note. All references in this Note to Borrower
or the Bank include their respective successors and assigns.

 

15.5Severability.
In the event any provision of this Note is prohibited or invalid under applicable law, that provision shall be ineffective to the
extent of such prohibition or invalidity without invalidating the remainder of this Note.

 

16.Submission
to Jurisdiction; Venue.

 

The validity, construction,
enforcement and interpretation of this Note shall be governed by the substantive laws of the State of Florida, without application
of its conflicts of law principles, and the United States of America. Any action, suit or proceeding arising out of this Note shall
be brought in the Thirteenth Judicial Circuit in and for Hillsborough County, Florida, or in the United States District Court for
the Middle District of Florida, Tampa Division, and the Bank and Borrower irrevocably consent to and submit to the jurisdiction
of those courts, and irrevocably waive any objection which the Bank and Borrower, respectively, now or hereafter may have to the
institution of any such suit, action, or proceeding in those courts, and further irrevocably waive any defense or claim that such
suit, action or proceeding in any such court has been brought in an inconvenient forum or improper venue.

 

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17.Waiver
of Jury Trial.

 

Borrower
and THE Bank, knowingly, voluntarily and intentionally waive the right either may have to a trial by jury in respect of any litigation
based on this Note, or arising out of, under, or in connection with this Note, or any agreement contemplated to be executed in
conjunction with this note, or any course of conduct, course of dealing, statements (whether verbal or written), or actions of
either Borrower or Bank. This provision is a material inducement for Bank’s and Borrower’s entering into the Loan evidenced
by this Note. This provision is binding upon and also applies to any holder of the Note.

 

[SIGNATURES
ON THE FOLLOWING PAGE]

    	5

    	 

    

IN WITNESS WHEREOF,
the undersigned has caused this Renewal Revolving Line of Credit Note to be duly executed and delivered as of the day and year
first above written.

 

	 	
        AEROSONIC CORPORATION

         

         

        By: ______________________________

        Its: ______________________________

        Name: ___________________________

 

 

 

 

 

 

 

 

 

THIS INSTRUMENT WAS MADE, EXECUTED AND
DELIVERED OUTSIDE THE STATE OF FLORIDA, AND NO FLORIDA DOCUMENTARY STAMP TAX IS DUE HEREON IN ACCORDANCE WITH F.A.C. 12B-4.053.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to RENEWAL Revolving Line of Credit Note]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]