Document:

Amendment No. 1 to Third Amended and Restated Credit Agreement

 Exhibit 10.1 
 AMENDMENT NO. 1 TO 
 THIRD AMENDED AND RESTATED CREDIT AGREEMENT 
 THIS AMENDMENT NO. 1 TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is entered into as of January 26, 2007 (the
“Effective Date”), by and among (a) Dominion Homes, Inc. (the “Company”), (b) the institutions from time to time (individually a “Lender” and collectively the “Lenders”) party to the Credit Agreement
(as defined below) signatory hereto, (c) The Huntington National Bank (“Huntington”) in its separate capacity as administrative agent (with its successors in such capacity, the “Administrative Agent”) for the Lenders and
(d) Silver Point Finance, LLC (“Silver Point”) in its separate capacity as senior administrative agent (with its successors in such capacity, the “Senior Administrative Agent”) for the Lenders. This Amendment amends and
modifies a certain Third Amended and Restated Credit Agreement dated as of December 29, 2006 (as amended, supplemented, restated or otherwise modified to the date hereof, the “Credit Agreement”) by and among (a) the Company, as
borrower, (b) the Lenders, as lenders, (c) the Senior Administrative Agent, (d) the Administrative Agent and (e) each of Huntington and Silver Point, each in its separate capacity as an issuing bank under the Credit Agreement
(each an “Issuing Bank” and collectively, the “Issuing Banks”). All capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Credit Agreement. 
 RECITALS: 
 A. As of December 29, 2006,
the Company, the Lenders, the Senior Administrative Agent, the Administrative Agent and the Issuing Banks executed and delivered the Credit Agreement setting forth the terms of certain loans, extensions of credit and other financial accommodations
to the Company; and 
 B. The Company has requested that the Lenders allow the Company to keep outstanding the cash collateralized letters of
credit issued by Fifth Third Bank instead of terminating and replacing them as provided in Sections 8.4(i) and 8.5(f) of the Credit Agreement; 
 C. The Company has also requested the Lenders’ consent to a proposed sale of property described below; and 
 D. The Company
has finally requested that the Lenders, the Senior Administrative Agent and the Administrative Agent amend and modify certain terms in the Credit Agreement, and the Lenders signatory hereto, the Senior Administrative Agent and the Administrative
Agent have agreed to (i) waive any Events of Default arising under Sections 8.4(i) and 8.5(f) of the Credit Agreement and caused by the Company’s failure to terminate and replace the letters of credit issued by Fifth Third Bank and
(ii) amend the Credit Agreement on the terms and subject to the conditions contained herein. 
 NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties signatory hereto agree as follows: 
 1.
Waiver. Subject to the terms of this Amendment, the Senior Administrative Agent, the Administrative Agent and the Lenders signatory hereto hereby agree to waive any Events of Default arising under Sections 8.4(i) and 8.5(f) of the Credit
Agreement and caused by the Company’s failure to terminate and replace the letters of credit issued by Fifth Third Bank instead of terminating and replacing them as provided in Sections 8.4(i) and 8.5(f) of the Credit Agreement. 
  

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 2. Section 8.3, “Sale of Assets,” of the Credit Agreement is hereby amended
by adding the following paragraph (g) immediately following paragraph (f) set forth therein: 
 (g) the sale of approximately 68
acres of real property located on Lehner Woods Boulevard in the State of Ohio, county of Delaware and city of Delaware, as more fully described in the Real Estate Purchase Agreement, dated January 18, 2007 (as in effect on such date, the
“Purchase Agreement”), between the Company, as seller, and the buyer named therein in the form previously provided to the Senior Administrative Agent; provided that (i) such sale is for 100% cash consideration, (ii) such
sale is made in compliance with the provisions of the Purchase Agreement and (iii) the proceeds of such sale are applied in accordance with Section 3.16(a) of this Agreement. 
 3. Section 8.4(i), “Liens,” of the Credit Agreement is hereby amended and restated in its entirety as follows: 

(i) the Liens on cash collateral deposited with Fifth Third Bank in connection with the letters of credit issued by Fifth Third Bank and outstanding on
the Closing Date in an aggregate face amount not to exceed $280,000 at any time. 
 4. Section 8.5(f),
“Indebtedness,” of the Credit Agreement is hereby amended and restated in its entirety as follows: 
 (f) Indebtedness of
the Company in respect of letters of credit issued by Fifth Third Bank and outstanding on the Closing Date in an aggregate face amount not to exceed $280,000 at any time. 
 5. Conditions of Effectiveness. All provisions of this Amendment shall become effective as of the Effective Date, upon satisfaction of all of the following conditions precedent: 
 (a) The Senior Administrative Agent shall have received duly executed counterparts (with sufficient copies for the Senior Administrative Agent, the
Administrative Agent, each Lender and the Company) of this Amendment executed by the Senior Administrative Agent, the Administrative Agent, Lenders constituting at least the Required Lenders and the Company, with the consent of the Guarantors, and
such other certificates, instruments, documents, and agreements as may be required by the Senior Administrative Agent, each of which shall be in form and substance satisfactory to the Senior Administrative Agent and its counsel; and 
 (b) The representations contained in the immediately following paragraph shall be true and accurate. 
 6. Representations and Warranties. The Company represents and warrants to the Senior Administrative Agent, the Administrative Agent and each
Lender as follows: (a) that after giving effect to this Amendment, each representation and warranty made by or on behalf of the Company and its Subsidiaries in the Credit Agreement and in the other Loan Documents is true and correct in all
respects on and as of the date hereof as though made on and as of such date, except to the extent that any such representation or warranty expressly relates solely to a date prior to the date hereof; (b) the execution, delivery and 

  

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performance by the Company and each Restricted Subsidiary, if applicable, of this Amendment and the Loan Documents, as the case may be, have been duly
authorized by all requisite corporate or organizational action on the part of each such Person and will not violate any Constituent Document of such Person; (c) each of this Amendment and the Loan Documents and the Security Documents has been
duly executed and delivered by the Company and each Restricted Subsidiary, as applicable, and each of this Amendment, the Credit Agreement as amended hereby, the Loan Documents and the Security Documents constitutes the legal, valid and binding
obligation of such Person, enforceable against each such Person in accordance with the terms thereof; and (d) as of the Effective Date, no event has occurred and is continuing, and no condition exists, which would constitute an Event of Default
or a Potential Default. 
 7. Reference to and Effect on the Loan Documents. As of the Effective Date, each reference in the Credit
Agreement to “Third Amended and Restated Credit Agreement,” “Credit Agreement,” “Agreement,” the prefix “herein,” “hereof,” or words of similar import, and each reference in the Loan Documents to the
Credit Agreement, shall mean and be a reference to the Credit Agreement as amended hereby. Except to the extent amended or modified hereby, all of the representations, warranties, terms, covenants and conditions of the Credit Agreement and the Loan
Documents shall remain as written originally and in full force and effect in accordance with their respective terms and are hereby ratified and confirmed, and nothing herein shall affect, modify, limit or impair any of the rights and powers which
the Lenders, the Senior Administrative Agent or the Administrative Agent may have hereunder or thereunder. The amendment set forth herein shall be limited precisely as provided for herein, and shall not be deemed to be a waiver of, amendment of,
consent to or modification of any of the rights of the Lenders, the Senior Administrative Agent or the Administrative Agent under or of any other term or provisions of the Credit Agreement or any Loan Document, or of any term or provision of any
other instrument referred to therein or herein or of any transaction or future action on the part of the Company which would require the consent of the Lenders, the Senior Administrative Agent or the Administrative Agent. 
 8. Waiver and Release of All Claims and Defenses. As of the Effective Date, the Company hereby forever waives, relinquishes, discharges and
releases all defenses and Claims of every kind or nature, whether existing by virtue of state, federal, or local law, by agreement or otherwise, against (i) the Senior Administrative Agent, the Administrative Agent, each Lender, each Issuing
Bank and any successors, assigns, directors, officers, shareholders, agents, employees, advisors and attorneys of any of the foregoing, (ii) the Obligations and (iii) the Collateral, in each instance whether previously or now existing or
arising out of or related to any transaction or dealings between the Senior Administrative Agent, the Administrative Agent, any Lender, any Issuing Bank and the Company, any Guarantor or any of them in connection with the Credit Agreement, any Loan
Document or this Amendment, which the Company, any Guarantor or any of them may have or may have made at any time up through and including the date of this Amendment, including without limitation, any affirmative defenses, counterclaims,
setoffs, deductions or recoupments, by the Company, any Guarantor and all of their representatives, successors, assigns, agents, employees, officers, directors and heirs. “Claims” includes all debts, demands, actions, causes of action,
suits, dues, sums of money, accounts, bonds, warranties, covenants, contracts, controversies, promises, agreements or obligations of any kind, type or description, and any other claim or demand of any nature whatsoever, whether known or unknown,
accrued or unaccrued, disputed or undisputed, liquidated or contingent, in contract, tort, at law or in equity, any of them ever had, claimed to have, now has, or shall or may have. Nothing contained in this Amendment prevents enforcement of this
release. 
 9. Waiver of Jury Trial. THE PARTIES ACKNOWLEDGE THAT, AS TO ANY AND ALL DISPUTES THAT MAY ARISE BETWEEN THE PARTIES, THE
COMMERCIAL NATURE OF THE TRANSACTION OUT OF WHICH THIS AMENDMENT ARISES WOULD MAKE ANY SUCH DISPUTE UNSUITABLE FOR TRIAL BY JURY. ACCORDINGLY, EACH OF THE PARTIES TO THIS AMENDMENT HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY AS TO ANY AND ALL DISPUTES
THAT MAY ARISE RELATING TO THIS AMENDMENT OR TO ANY OF THE OTHER INSTRUMENTS OR DOCUMENTS EXECUTED IN CONNECTION HEREWITH. 
  

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 10. Counterparts. This Amendment 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 an original, and all of which together will constitute one and the same instrument. Receipt by the Senior Administrative Agent of a facsimile copy of an
executed signature page hereof will constitute receipt by the Senior Administrative Agent of an executed counterpart of this Amendment. 
 11. Costs and Expenses, Indemnity. The Company agrees to pay on demand in accordance with the terms of the Credit Agreement all reasonable costs and expenses of the Senior Administrative Agent and the Administrative Agent in
connection with the preparation, reproduction, execution and delivery of this Amendment and all other Loan Documents entered into in connection herewith, including the reasonable fees and out-of-pocket expenses of the Senior Administrative
Agent’s counsel and the Administrative Agent’s counsel with respect thereto. The Company agrees to indemnify the Senior Administrative Agent, the Administrative Agent, the Issuing Banks and the Lenders, and each of them and their
respective directors, officers, employees, agents, financial advisors, and consultants from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements of any kind or
nature whatsoever (including, without limitation, fees and disbursements of counsel) which may be imposed on, incurred by, or asserted against the Senior Administrative Agent, the Administrative Agent, the Issuing Banks and the Lenders, or any of
them, in any litigation, proceeding or investigation instituted or conducted by any governmental agency or instrumentality or any other person or entity with respect to any aspect of, or any transaction contemplated by, or referred to in, or any
matter related to, this Amendment, the Credit Agreement or any other Loan Document, whether or not the Senior Administrative Agent, the Administrative Agent, any Issuing Bank or any Lender is a party thereto, except to the extent that any of the
foregoing arises out of the gross negligence or willful misconduct of the party being indemnified, as determined in a final, non-appealable judgment by a court of competent jurisdiction. 
 12. Governing Law. This Amendment and the rights and obligations of the parties hereto shall be governed by, and construed and interpreted in
accordance with, the law of the State of New York. 
 13. Headings. Section headings in this Amendment are included herein for
convenience of reference only and will not constitute a part of this Amendment for any other purpose. 
 14. Patriot Act Notice. The
Lenders and the Senior Administrative Agent hereby notify the Company that pursuant to the requirements of the USA Patriot Act (Title III of Pub.L.10756 (signed into law October 26, 2001)) (the “Act”), they are required to obtain,
verify and record information that identifies the Company, which information includes the name and address of the Company and other information that will allow the Lenders and the Senior Administrative Agent to identify the Company in accordance
with the Act. 
 [Signature pages follow.] 
  

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 IN WITNESS WHEREOF, the Company, the Senior Administrative Agent, the Administrative Agent and the
following Lenders have hereunto set their hands as of the date first set forth above. 
  

			
	THE COMPANY:
	
	DOMINION HOMES, INC.
		
	By:	 	 /s/ William G. Cornely

	Its:	 	Senior Vice President – Finance and CFO
	
	THE SENIOR ADMINISTRATIVE AGENT:
	
	SILVER POINT FINANCE, LLC
		
	By:	 	 /s/ Richard Petrilli

	Its:	 	Authorized Signatory
	
	THE ADMINISTRATIVE AGENT:
	
	THE HUNTINGTON NATIONAL BANK
		
	By:	 	 /s/ John M. Luehmann

	Its:	 	Vice President

			
	THE LENDERS:
	
	SILVER OAK CAPITAL, L.L.C.
		
	By:	 	 /s/ Thomas M. Fuller

	Its:	 	Authorized Signatory
	
	FIELD POINT I, LTD.
		
	By:	 	 /s/ Richard Petrilli

	Its:	 	Authorized Signatory
	
	SPCP GROUP, L.L.C.
		
	By:	 	 /s/ Richard Petrilli

	Its:	 	Authorized Signatory
	
	GRAND CENTRAL ASSET TRUST, SIL SERIES
		
	By:	 	 /s/ Beata Konopko

	Its:	 	Attorney-in-Fact

 CONSENT OF GUARANTORS 
 Each of the undersigned, being a guarantor of the Company’s indebtedness to the Lenders pursuant to certain guaranty agreements executed and
delivered to the Senior Administrative Agent, hereby consents and agrees to be bound by the terms, conditions and execution of the foregoing Amendment and hereby further agrees that (i) each of their obligations shall be continuing as provided
in said guaranty agreements, and (ii) said guaranty agreements shall remain as written originally and continue in full force and effect in all respects. As of the Effective Date, each Guarantor further hereby forever waives, relinquishes,
discharges and releases all defenses and Claims of every kind or nature, whether existing by virtue of state, federal, or local law, by agreement or otherwise, against (i) the Senior Administrative Agent, the Administrative Agent, each Lender,
each Issuing Bank and any successors, assigns, directors, officers, shareholders, agents, employees and attorneys of any of the foregoing, (ii) the Obligations, and (iii) the Collateral, in each instance whether previously or now existing
or arising out of or related to any transaction or dealings between the Senior Administrative Agent, the Administrative Agent, any Lender, any Issuing Bank and the Company, any Guarantor or any of them in connection with the Credit Agreement, any
Loan Document or this Amendment, which the Company, any Guarantor or any of them may have or may have made at any time up through and including the date of the above Amendment, including without limitation, any affirmative defenses,
counterclaims, setoffs, deductions or recoupments, by the Company, any Guarantor and all of their representatives, successors, assigns, agents, employees, officers, directors and heirs. “Claims” includes all debts, demands, actions, causes
of action, suits, dues, sums of money, accounts, bonds, warranties, covenants, contracts, controversies, promises, agreements or obligations of any kind, type or description, and any other claim or demand of any nature whatsoever, whether known or
unknown, accrued or unaccrued, disputed or undisputed, liquidated or contingent, in contract, tort, at law or in equity, any of them ever had, claimed to have, now has, or shall or may have. Nothing contained in this Amendment prevents enforcement
of this release. 
  

									
	DOMINION HOMES OF KENTUCKY GP, LLC	 		 	DOMINION HOMES REALTY, LLC
					
	By:	 	 /s/ William G. Cornely
	 		 	By:	 	 /s/ William G. Cornely

	Its:	 	Vice President	 		 	Its:	 	Vice President and Treasurer
			
	ALLIANCE TITLE AGENCY OF KENTUCKY, LLC	 		 	RESOLUTION PROPERTY COMPANY, LLC
					
	By:	 	 /s/ William G. Cornely
	 		 	By:	 	 /s/ William G. Cornely

	Its:	 	Vice President and Treasurer	 		 	Its:	 	President

 Signature Page to Amendment No. 1 to Third Amended and Restated Credit Agreement

									
	PRESERVE AT RACCOON CREEK, LLC	 		 	TANGLEWOOD INVESTMENT COMPANY LLC
					
	By:	 	 /s/ William G. Cornely
	 		 	By:	 	 /s/ William G. Cornely

	Its:	 	SVP and CFO of Dominion Homes, Inc.,	 		 	Its:	 	SVP and CFO of Dominion Homes, Inc.,
		 	its sole Member	 		 		 	its sole Member
			
	TANGLEWOOD DEVELOPMENT COMPANY LLC	 		 	DOMINION HOMES OF KENTUCKY, LTD.
		 		 		 	By:	 	Dominion Homes of Kentucky GP, LLC, its general partner
					
	By:	 	 /s/ William G. Cornely
	 		 	By:	 	 /s/ William G. Cornely

	Its:	 	SVP and CFO of Dominion Homes, Inc.,	 		 	Its:	 	Vice President
		 	its sole MemberCommercial Loan Agreement between Optical Cable Corporation and Valley Bank

 Exhibit 4.6 
  

									
	 LOAN NUMBER
	 	LOAN NAME	 	ACCT. NUMBER	 	AGREEMENT DATE	 	INITIALS
	 156779
	 	Optical Cable Corporation	 	19398	 	09/22/06	 	MNM
					
	 NOTE AMOUNT
	 	INDEX (w/Margin)	 	RATE	 	MATURITY DATE	 	LOAN PURPOSE
	 $5,000,000.00
	 	30 Day LIBOR plus 2.150%	 	7.54%	 	2/28/08	 	Commercial
	
	Creditor Use Only

 COMMERCIAL LOAN AGREEMENT 
 Accounts Receivable and/or Inventory Financing 
 DATE AND PARTIES. The date of this Commercial
Loan Agreement (Agreement) is September 22, 2006. The parties and their addresses are as follows: 
 LENDER: 
 VALLEY BANK 
 36 W. Church Ave. S.W. 
 Roanoke, Virginia 24011 
 BORROWER: 
 OPTICAL
CABLE CORPORATION 
 a Virginia Corporation 
 5290 Concourse Drive 
 Roanoke, Virginia 24019 
 1. DEFINITIONS. For the purposes of this Agreement, the following terms have the following meanings.

 A. Accounting Terms. In this Agreement, any accounting terms that are not specifically defined will have their customary
meanings under generally accepted accounting principles. 
 B. Insiders. Insiders include those defined as insiders by the
United States Bankruptcy Code, as amended; or to the extent left undefined, include without limitation any officer, director, partner, or any immediate family member of any of the foregoing, or any person or entity which, directly or indirectly,
controls, is controlled by or is under common control with it. 
 C. Loan. The Loan refers to this transaction generally,
including obligations and duties arising from the terms of all documents prepared or submitted for this transaction. 
 D. Loan
Documents. Loan Documents refer to all the documents executed as a part of or in connection with the Loan. 
 E. Pronouns.
The pronouns “the Company” or “Optical Cable Corporation” refer to the Borrower signing this Agreement. “You” and “your” refers to the Loan’s lender. 
 F. Property. Property is any property, real, personal or intangible, that secures the Company’s performance of the obligations of this
Loan. 
 G. Asset-Based Financing Definitions. For the purposes of this Agreement, the following terms will have the following
meanings.  
 (1) Account Debtors. Account Debtors are persons who are obligated on the Accounts Receivable. 
 (2) Account Guarantors. Account Guarantors are persons who have guarantied certain Accounts Receivable. 
 (3) Accounts Receivable. Accounts Receivable will include all of the following meanings. 
 (a) Accounts and Other Rights to Payment. All rights the Company has now or in the future to payments including, but not limited to, payment
for goods and other property sold or leased or for services rendered, whether or not the Company has earned such payment by performance. This includes any rights and interests (including all guaranties, standby letters of credit, liens and security
interests) which the Company may have by law or agreement against any Account Debtor. 
 (b) General Intangibles. All general
intangibles including, but not limited to, tax refunds, applications for patents, patents, copyrights, trademarks, trade secrets, good will, trade names, customer lists, permits and franchises, and the right to use the Company’s name.

 (c) Proceeds. All proceeds from the disposition or collection of Accounts Receivable. 
 (4) Eligible Accounts Receivable. Eligible Accounts Receivable include all of the Company’s Accounts Receivable that are and continue to be
acceptable to you in all respects. Eligible Accounts Receivable exclude all Accounts Receivable, or the portion of any Account Receivable as indicated, that: 
 (a) Have not been finally accepted by the Account Debtors and Guarantors without dispute, offset, defense or counterclaim for the purpose of voiding, avoiding or reducing the amount of the Accounts Receivable.

 (b) Are subject or will be subject to a service or maintenance agreement or a prior claim,
assignment, security interest or any type of lien, unless you consent to these interests or these interests are subordinated to your interest. 
 (c) The portion of any Account Receivable that is subject to a credit adjustment or allowance (except for a discount for prompt payments). 
 (d) Are subject to a return, rejection or repossession. 
 (e) Have Account Debtors or
Guarantors that cannot be identified on the Company’s records. 
 (f) Are owed by Account Debtors or Guarantors who are
insolvent, subject to bankruptcy or receivership proceedings, have made an assignment for the benefit of creditors or whose credit standing is otherwise unacceptable to you and you have so notified it. 
 (g) Have Account Debtors that are foreign governments. 
 (h) Have Account Debtors that are not residents of the United States of America. 
 (i) Are
subject to a retainage to the extent of the retainage. 
 (j) Have Account Debtors that are an Insider or “affiliate” of the
Company, as defined by the United States Bankruptcy Code, as amended. 
 (k) Have Account Debtors or Guarantors whose credit standing
in relation to the amount of credit extended has become unsatisfactory to you. 
 (l) The portion of any otherwise Eligible Accounts
Receivable balances the payment of which is subject to withholding by the Account Debtor until the Company has completed performance of services or delivery of goods. 
 (m) The portion of any otherwise Eligible Accounts Receivable balances which have been due and owing for more than 90 days measured from the invoice due dates and all remaining Accounts Receivable owed by these
Account Debtors who are overdue on at least one of their Accounts Receivable. 
 (n) The entire balance of any otherwise Eligible
Accounts Receivable if 50 percent or more of that entire balance has been due and owing for more than 90 days from the invoice due dates. 
 (o) The portion of any otherwise Eligible Accounts Receivable balance which is offset by a contra account owing from the Company (e.g., only the net amount due from the Account Debtor after the amount the Company owes the Account
Debtor is subtracted from the amount the Account Debtor owes the Company is eligible). 
 (p) Percent of the balance of any otherwise
Eligible Accounts Receivable owed by an Account Debtor whose total Eligible Accounts Receivable balance exceeds 20 percent of the total Eligible Accounts Receivable balances owing from all Account Debtors. 
 (q) Have arisen from sales made outside of the ordinary course of business. 
 (r) Are not subject to the Uniform Commercial Code and for which the sales agreement or purchase orders have a non- assignability clause.

 (s) You, in your discretion exercised reasonably and in good faith, judge not to qualify as an Eligible Accounts Receivable.

 (5) Overadvance. An Overadvance is made when advances exceed the maximum outstanding Principal balance. 
 2. ADVANCES. Advances under this Agreement are made according to the following terms and conditions. 
 A. Asset Based Financing - Revolving Draw. In accordance with the terms of this Agreement and other Loan Documents, you will extend to the Company
and the Company may from time to time borrow, repay, and reborrow, one or more advances. The amount of advances will not exceed the lesser of $5,000,000.00 (Principal) or the Borrowing Base. The Borrowing Base is calculated as 85 percent of Eligible
Accounts Receivable. As long as the Company owes any amounts to you under the Loan, the Company will calculate this Borrowing Base as of the close of its business day the time specified under the Line Manager Addendum, and within every 30 days, and
will provide you with a Borrowing Base Certificate containing an assignment of any Accounts Receivable. The Borrowing Base Certificate will be in form and substance acceptable to you, will contain the Company’s Borrowing Base calculation and
will be certified and signed by an officer of the Company. The Company’s calculation of its Borrowing Base is subject to your confirmation or redetermination. Your calculation of the Borrowing Base will be the final determination when your
calculation of the Borrowing Base ratio differs from the Company’s. 
 B. Requests for Advances. The Company’s requests are a
representation that the Company is in compliance with all the Loan Documents. When required by you for a particular method of advance, the Company’s requests for an advance must specify the requested amount and the date and be accompanied with
any agreements, documents, and instruments that you require for the Loan. Any payment by you of any check, share draft or other charge may, at your option, constitute an advance on the Loan to the Company. All advances will be made in United States
dollars. The Company will indemnify you and hold you harmless for your reliance on any request for advances by the Company that you reasonably believe to be genuine. 
 The only persons authorized to request advances are set forth in Schedule A to this Loan Agreement. The Company may revise Schedule A from time to time; provided the change will not be binding on you until your
receipt of written notice thereof. Such revisions will be signed by the Chief Executive Officer and the Chief Financial Officer of the Company. Requests for advances may be made by authorized persons in the form of fax. 

 C. Advance Limitations. In addition to any other Loan conditions, requests for, and access to,
advances are subject to the following limitations. 
 (1) Obligatory Advances. You will make all Loan advances subject to this
Agreement’s terms and conditions. 
 (2) Advance Amount. Subject to the terms and conditions contained in this Agreement, advances
will be made in exactly the amounts requested by the Company. 
 (3) Cut-Off Time. Requests for an advance received before 02:00 PM
will be made on any day that you are open for business, on the day for which the advance is requested. 
 (4) Disbursement of Advances.
On the Company’s fulfillment of this Agreement’s terms and conditions, you will disburse the advance in any manner as you and the Company agree. 
 (5) Credit Limit. The Company understands that you will not ordinarily grant a request for an advance that would cause the unpaid principal of the Company’s Loan to be greater than the Principal limit. You
may, at your option, grant such a request without obligating yourselves to do so in the future. The Company will pay any overadvances in addition to its regularly scheduled payments. The Company will repay any overadvance by repaying you the amount
of the overadvance in full within 10 days after the overadvance occurs. 
 (6) Records. Your records will be conclusive evidence as to
the amount of advances, the Loan’s unpaid principal balances and the accrued interest. 
 (7) Repayment Of Overadvances. The
Company will pay any Overadvances in addition to its regularly scheduled payments. The Company will repay any Overadvance by repaying you in full within 3 days after the Overadvance occurs, except the Company may repay an Overadvance of $0 or less
within 0 days if the outstanding Principal balance, including the excess, does not exceed the liquidation value of Accounts Receivable and Inventory and the Overadvance resulted from you declaring ineligible previously Eligible Accounts Receivable
and Inventory. Otherwise, the Company will repay any Overadvance by making periodic payments to you as you request. 
 D. Conditions.
The Company will satisfy all of the following conditions before you either issue any promissory notes or make any advances under this Agreement. 
 (1) No Default. There has not been a default under this Agreement or any other Loan Documents nor would a default result from making the Loan or any advance. 
 (2) Information. You have received all documents, information, certifications and warranties as you may require, all properly executed, if
appropriate, on forms acceptable to you. This includes, but is not limited to, the documents and other items listed in the Loan Checklist Report which is hereby incorporated by reference into this Agreement. 
 (3) Inspections. You have made all inspections that you consider necessary and are satisfied with this inspection. 
 (4) Conditions and Covenants. The Company will have performed and complied with all conditions required for an advance and all covenants in this
Agreement and any other Loan Documents. 
 (5) Warranties and Representations. The warranties and representations by the Company
contained in this Agreement are true and correct at the time of making the requested advance. 
 (6) Financial Statements. The
Company’s most recent financial statements, Inventory or Accounts Receivable schedules and other financial reports, delivered to you, are current, complete, true and accurate in all material respects and fairly represent the Company’s
financial condition in all materials respects. 
 (7) Bankruptcy Proceedings. No proceeding under the United States Bankruptcy Code has
been commenced by or against the Company or any of its affiliates. 
 3. DEMAND. This Loan and the obligation evidenced by the Note mature on
February 28, 2008, unless otherwise extended by written agreement by the parties hereto; however, the Company agrees to fully repay the Loan on demand with 60 days prior written notice by you. Unless sooner demanded, all principal, accrued
interest, costs, and other amounts owed shall be due and payable on February 28, 2008. Notwithstanding the foregoing, in the event the Company defaults hereunder or under any other Loan Document you may immediately declare the Loan due and
payable in full, together with all other amounts owed hereunder. 
 4. WARRANTIES AND REPRESENTATIONS. The Company makes to you the following
warranties and representations which will continue as long as this Loan is in effect, except when this Agreement provides otherwise. 
 A.
Power. The Company is duly organized, and validly existing and in good standing in all jurisdictions in which it operates. The Company has the power and authority to enter into this transaction and to carry on its business or activity as it is
now being conducted and, as applicable, is qualified to do so in each jurisdiction in which it operates. 
 B. Authority. The
execution, delivery and performance of this Loan and the obligation evidenced by the Note are within the Company’s powers, have been duly authorized, have received all necessary governmental approval, will not violate any provision of law, or
order of court or governmental agency, and will not violate any agreement to which the Company is a party or to which the Company or any of its property is subject. 
 C. Name and Place of Business. Other than previously disclosed in writing to you the Company has not changed its name or principal place of business within the last 5 years and has not used any other trade or
fictitious name. Without your prior written consent, the Company does not and will not use any other name and will preserve its existing name, trade names and franchises. 
 D. Hazardous Substances. Except as the Company previously disclosed in writing and you acknowledge in writing, no Hazardous Substance, underground tanks, private dumps or open wells are currently located at,
on, in, under or about the Property. 

 E. Use of Property. After diligent inquiry, the Company does not know or have reason to know that
any Hazardous Substance has been discharged, leached or disposed of, in violation of any Environmental Law, from the property onto, over or into any other property, or from any other property onto, over or into the property. 
 F. Environmental Laws. The Company has no knowledge or reason to believe that there is any pending or threatened investigation, claim, judgment or
order, violation, lien, or other notice under any Environmental Law that concerns Optical Cable Corporation or the property. The property and any activities on the property are in full compliance with all Environmental Law. 
 G. Loan Purpose. The purpose of this Loan is to establish a Line Manager Line of Credit to support working capital. 
 H. No Other Liens. The Company owns or leases all property that is needed to conduct its business and activities. The Company has good and
marketable title to all property that it owns or leases. All of the Company’s Property is free and clear of all liens, security interests, encumbrances and other adverse claims and interests, except those disclosed to you or those you consent
to in writing. 
 I. Compliance With Laws. The Company is not materially violating any laws, regulations, rules, orders, judgments or
decrees applicable to the Company or its property, except for those which the Company is challenging in good faith through proper proceedings after providing appropriate reserves in accordance with generally accepted accounting principles to fully
pay the claim and its challenge should I lose. 
 J. Legal Dispute. There are no pending or threatened lawsuits, arbitrations or other
proceedings against the Company or the Company’s property that singly or together may materially and adversely affect the Company’s property, operations, financial condition, or business, other than any potential litigation which has been
disclosed to you in writing. 
 K. Adverse Agreements. The Company is not a party to, nor is it bound by, any agreement that is now or
is likely to become materially adverse to the Company’s business, Property or operations. 
 L. Other Claims. There are no
outstanding claims or rights that would conflict with the execution, delivery or performance by the Company of the terms and conditions of this Agreement or the other Loan Documents. No outstanding claims or rights exist that may result in a lien on
the Property, the Property’s proceeds and the proceeds of proceeds, except liens that were disclosed to and agreed to by you in writing. 
 M. Solvency. The Company is able to pay its debts as they mature, the Company’s assets exceed its liabilities and the Company will have sufficient capital for current and planned business and other activities after this
financing. The Company will not become insolvent by the execution or performance of this Loan. 
 5. FINANCIAL STATEMENTS. The Company will
prepare and maintain its financial records using consistently applied generally accepted accounting principles then in effect. The Company will provide you with financial information in a form that you accept and under the following terms.

 A. Certification. The Company represents and warrants that any financial statements that the Company provides you fairly
represents its financial condition for the stated periods, is current, complete, true and accurate in all material respects, includes all of its direct or contingent liabilities (to the extent required by generally accepted accounting principles)
and there has been no material adverse change in the Company’s financial condition, operations or business since the date the financial information was prepared. 
 B. Frequency. Each year, the Company will provide to you its audited annual financial statements and any written reports prepared by the Company’s independent accountants prepared in connection with
the audit as soon as available or at least within 90 days after the close of the Company’s fiscal year. 
 (1) Interim Financial
Reports. Each quarter, the Company will provide to you unaudited financial statements and any written reports prepared by the Company’s independent accountants as soon as available or at least within 45 days after the close of this business
period. 
 (2) Accounts Receivable Schedule. Each quarter (reporting period), the Company will provide you with an Accounts Receivable
schedule within 15 days after the end of this reporting period or with the frequency and promptness you otherwise request. 
 C. SEC
Reports. The Company will provide you with true and correct copies of all reports, notices or statements that it provides to the Securities and Exchange Commission, any securities exchange or its stockholders, owners, or the holders of any
material indebtedness as soon as available or at least within10 days after issuance, to the extent not available on the SEC website. 
 D.
Requested Information. The Company will provide you with any other information about its operations, financial affairs and condition within 15 days after your reasonable request. 
 E. Additional Financial Statements Term. In addition, Optical Cable Corporation is required to submit Accounts Receivable Agings quarterly and
Accounts Payable Agings annually. Optical Cable Corporation will also provide you with budgets and forecasts approved by its Board of Directors, tax returns (both Federal and state) upon your request. 
 6. COVENANTS. Until the Loan and all related debts, liabilities and obligations are paid and discharged, the Company will comply with the following terms,
unless you waive compliance in writing. 
 A. Participation. The Company consents to you participating or syndicating the Loan
and sharing any information that you decide is necessary about the Company and the Loan with the other participants or syndicators. 
 B. Inspection. Following your written request, the Company will immediately pay for all one-time and recurring out-of-pocket costs that are related to the inspection of the Company records, business or Property that secures
the Loan. Upon reasonable notice, the Company will permit you or your agents to enter any of Optical Cable Corporation’s premises and any location where the Company’s Property is located during regular business hours to do the following.

 (1) You may inspect, audit, check, review and obtain copies from the Company’s books, records, journals,
orders, receipts, and any correspondence and other business related data. 
 (2) You may inspect the Company’s
Property, audit for the use and disposition of the Property’s proceeds and proceeds of proceeds; or do whatever you decide is necessary to preserve and protect the Property and your interest in the Property. 

 After prior notice to the Company, you may discuss the Company’s financial condition and business
operations with the Company’s independent accountants, if any, or the chief financial officer of the Company and a representative of the Company may be present during these discussions. As long as the Loan is outstanding, the Company will
direct all of its accountants and auditors to permit you to examine its records in their possession and to make copies of these records. You will maintain the confidentiality of the information you or your agents obtain, except you may provide your
regulator and your independent accountants, if any, with required information about the Company’s financial condition, operation and business or that of any parent, subsidiaries or affiliates of the Company. Provided the Company is not in
default, you agree that your inspection of the Company’s records, business or Property shall be limited to once per calendar year. 
 C. Business Requirements. The Company will preserve and maintain its present existence and good standing in the jurisdiction where the Company is organized and all of the Company’s rights, privileges and franchises. The Company
will do all that is needed or required to continue its business or activities as presently conducted, by obtaining licenses, permits and bonds everywhere it engages in business or activities or own, lease or locate its property. The Company will
obtain your prior written consent before the Company ceases its business or before the Company engages in any new line of business that is materially different from its present business or new businesses presently contemplated. 
 D. Compliance with Laws. The Company will not materially violate any laws, regulations, rules, orders, judgments or decrees applicable to it or its
Property, except for those which the Company challenges in good faith through proper proceedings after providing appropriate reserves to pay the claim and its appeal should the Company lose. Laws include without limitation the Federal Fair Labor
Standards Act requirements for producing goods, the federal Employee Retirement Income Security Act of 1974’s requirements for the establishment, funding and management of qualified deferred compensation plans for employees, health and safety
laws, environmental laws, tax laws, licensing and permit laws. On your request, the Company will provide you with written evidence that it has fully and timely paid its taxes, assessments and other governmental charges levied or imposed on the
Company, its income or profits and its property. Taxes include without limitation sales taxes, use taxes, personal property taxes, documentary stamp taxes, recordation taxes, franchise taxes, income taxes, withholding taxes, FICA taxes and
unemployment taxes. The Company will adequately provide for the payment of these taxes, assessments and other charges that have accrued but are not yet due and payable. 
 E. New Organizations. The Company will obtain your written consent and any necessary changes to the Loan Documents before it organizes or participates in the organization of any entity, merges into or
consolidates with any one, permits any one else to merge into the Company, acquires all or substantially all of the assets of any one else or otherwise materially changes its legal structure, management, ownership or financial condition. 

F. Dealings with Insiders. The Company will not purchase, acquire or lease any property or services from, or sell, provide or lease any property
or services to, or permit any outstanding loans or credit extensions to, or otherwise deal with, any Insiders except as required under contracts existing at the time the Company applied for the Loan and approved by you or as this Agreement otherwise
permits and except to the extent that such dealings with Insiders are on customary business terms at least as favorable to the Company as would be a similar transaction with a non-Insider. The Company will not change or breach these contracts
existing at Loan application so as to cause an acceleration of or an increase in any payments due. This provision does not apply to any dealings with the sole company identified to you in writing contemporaneously with the signing hereof.

 G. Other Debts. The Company will pay when due any and all other debts owed or guaranteed by it and will faithfully perform, or
comply with all the conditions and obligations imposed on the Company concerning the debt or guaranty. 
 H. Other Liabilities. The
Company will not incur, assume or permit any debt evidenced by notes, bonds or similar obligations, except: debt in existence on the date of this Agreement and fully disclosed to you; debt subordinated in payment to you on conditions and terms
acceptable to you; accounts payable incurred in the ordinary course of its business and paid under customary trade terms or contested in good faith with appropriate reserves under generally accepted accounting principles. 
 I. Notice to You. The Company will promptly notify you of any material change in its financial condition, of the occurrence of a default under the
terms of this Agreement or any other Loan Document, or a default by the Company under any agreement between the Company and any third party which materially and adversely affects its property, operations, financial condition or business. 

J. Certification of No Default. On your request, the chief financial officer or the independent accountant will provide you with a written
certification that to the best of their knowledge no event of default exists under the terms of this Agreement or the other Loan Documents, and that there exists no other action, condition or event which with the giving of notice or lapse of time or
both would constitute a default. As requested, the chief financial officer will also provide you with computations demonstrating compliance with any financial covenants and ratios contained in this Agreement. If an action, condition or event of
default does exist, the certificate must accurately and fully disclose the extent and nature of this action, condition or event and state what must be done to correct it. 
 K. Use of Loan Proceeds. The Company will not permit the loan proceeds to be used to purchase, carry, reduce, or retire any loan originally incurred to purchase or carry any margin stock or otherwise cause the
Loan to violate Federal Reserve Board Regulations U or X, or Section 8 of the Securities and Exchange Act of 1934 and its regulations, as amended. 
 L. Dispose of No Assets. Without your prior written consent or as the Loan Documents permit, the Company will not sell, lease, assign, transfer, dispose of or otherwise distribute all or substantially all of
its assets to any person other than in the ordinary course of business for the assets’ depreciated book value or more. 
 M. No Other
Liens. The Company will not create, permit or suffer any lien or encumbrance upon any of its properties for or by anyone, other than you, except for: nonconsensual liens imposed by law arising out of the ordinary course of business on

 obligations that are not overdue or which the Company is contesting in good faith after making appropriate reserves; valid purchase money
security interest on personal property; or any other liens specifically agreed to by you in writing. 

 N. Guaranties. The Company will not guaranty or become liable in any way as surety, endorser
(other than as endorser of negotiable instruments in the ordinary course of business) or accommodation endorser or otherwise for the debt or obligations of any other person or entity, except to you or as you otherwise specifically agree in writing.

 O. No Default under Other Agreements. The Company will not allow to occur, or to continue unremedied, any act, event or condition
which constitutes a material default, or which, with the passage of time or giving of notice, or both, would constitute a material default under any material agreement, document, instrument or undertaking to which the Company is a party or by which
the Company may be bound. 
 P. Legal Disputes. The Company will promptly notify you in writing of any threatened or pending lawsuit,
arbitration or other proceeding against the Company or any of its property, not identified in my financial statements, and that singly or together with other proceedings may materially and adversely affect my property, operations, financial
condition or business. The Company will use its best efforts to bring about a favorable and speedy result of any of these lawsuits, arbitrations or other proceedings. 
 Q. Other Notices. The Company will immediately provide you with any information that may materially and adversely affect its ability to perform this Agreement and of its anticipated effect. 
 R. No Change in Capital. The Company will not release, redeem, retire, purchase or otherwise acquire, directly or indirectly, any of its capital
stock or other equity security or partnership interest, or make any change in its capital structure, except to the extent required by any agreements signed prior to this Agreement and disclosed to you or with your prior written consent; and except
with respect to the repurchase of stock in the form of “net share withholdings” pursuant to restricted share grants made under its current and future Stock Incentive Plans. 
 S. Loan Obligations. The Company will comply with the terms and agreements contained in this Agreement and in the other Loan Documents. 

T. Insurance. The Company will obtain and maintain insurance with insurers, in amounts and coverages that are acceptable to you and customary
with industry practice. This may include without limitation insurance policies for public liability, fire hazard and extended risk, workers compensation, and, at your request, business interruption and/or rent loss insurance. At your request, the
Company will deliver to you certified copies of all of these insurance policies, binders or certificates. The Company will obtain and maintain a mortgagee or lender loss payee endorsement for you when these endorsements are available. The Company
will immediately notify you of cancellation or termination of insurance. The Company will require all insurance policies to provide you with at least 10 days prior written notice to you of cancellation or modification. The Company consents to you
using or disclosing information relative to any contract of insurance required by the Loan for the purpose of replacing this insurance. The Company also authorizes its insurer and you to exchange all relevant information related to any contract of
insurance required by any document executed as part of this Loan. 
 U. Property Maintenance. The Company will keep all tangible and
intangible property that the Company considers necessary or useful in its business in good working condition by making all needed repairs, replacements and improvements and by making all rental, lease or other payments due on this property.

 V. Property Loss. The Company will immediately notify you, and the insurance company when appropriate, of any material casualty,
loss or depreciation to the Property or to its other property that affects its business. 
 W. Accounts Receivable Collection. The
Company will collect and otherwise enforce all of its unpaid Accounts Receivable at the Company’s cost and expense, until you end its authority to do so, which you may do at any time to protect your best interests. Notwithstanding the
foregoing, you agree that you will not end its authority to collect the Company’s unpaid Accounts Receivables until the Company is in default of this Agreement or any other Loan Documents. The Company will not sell, assign or otherwise dispose
of any Accounts Receivable without your written consent. 
 X. Reserves. You may set aside and reserve Loan proceeds for Loan interest,
fees and expenses, taxes, and insurance. The Company grants you a security interest in the reserves. No interest will accrue on any reserve Loan proceeds. Disbursement of reserves is disbursement of the Loan’s proceeds. At the Company’s
request, you will disburse the reserves for the purpose they were set aside for, as long as the Company is not in default under this Agreement. You may directly pay these reserved items, reimburse the Company for payments the Company made, or reduce
the reserves and increase the Loan proceeds available for disbursement. 
 Y. Additional Taxes. The Company will pay all filing and
recording costs and fees, including any recordation, documentary or transfer taxes or stamps, that are required to be paid with respect to this Loan and any Loan Documents. 
 7. COLLECTION EXPENSES AND ATTORNEYS’ FEES. On or after Default, to the extent permitted by law, the Company agrees to pay all expenses of collection, enforcement or protection of your rights and remedies
under this Agreement or any other Loan Document. Expenses include (unless prohibited by law) reasonable attorneys’ fees, court costs, and other legal expenses. These expenses are due and payable immediately. If not paid immediately, these
expenses will bear interest from the date of payment until paid in full at the highest interest rate in effect as provided for in the terms of this Loan. All fees and expenses will be secured by the Property the Company has granted to you, if any.
In addition, to the extent permitted by the United States Bankruptcy Code, the Company agrees to pay the reasonable attorneys’ fees incurred by you to protect your rights and interests in connection with any bankruptcy proceedings initiated by
or against the Company. 
 8. APPLICABLE LAW. This Agreement is governed by the laws of Virginia, the United States of America, and to the extent
required, by the laws of the jurisdiction where the Property is located. 

 9. JOINT AND INDIVIDUAL LIABILITY AND SUCCESSORS. The Company’s obligation to pay the Loan is independent of
the obligation of any other person who has also agreed to pay it. You may sue the Company alone, or anyone else who is obligated on the Loan, or any number of them together, to collect the Loan. Extending the Loan or new obligations under the Loan,
will not affect the Company’s duty under the Loan and the Company will still be obligated to pay the Loan. You may assign all or part of your rights or duties under this Agreement or the Loan Documents without the Company’s consent. If you
assign this Agreement, all of the Company’s covenants, agreements, representations and warranties contained in this Agreement or the Loan Documents will benefit your successors and assigns. The Company may not assign this Agreement or any of
its rights under it without your prior written consent. The duties of the Loan will bind its successors and assigns. 
 10. AMENDMENT, INTEGRATION AND
SEVERABILITY. This Agreement may not be amended or modified by oral agreement. No amendment or modification of this Agreement is effective unless made in writing and executed by you and the Company. This Agreement and the other Loan Documents
are the complete and final expression of the understanding between you and the Company. If any provision of this Agreement is unenforceable, then the unenforceable provision will be severed and the remaining provisions will still be enforceable.

 11. INTERPRETATION. Whenever used, the singular includes the plural and the plural includes the singular. The section headings are for convenience
only and are not to be used to interpret or define the terms of this Agreement. 
 12. NOTICE, FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Unless
otherwise required by law, any notice will be given by delivering it or mailing it by first class mail to the appropriate party’s address listed in the DATE AND PARTIES section, or to any other address designated in writing. Notice to one
Borrower will be deemed to be notice to all Borrowers. The Company will inform you in writing of any change in its name, address or other application information. The Company will provide you any financial statement or information you request. All
financial statements and information the Company gives you will be correct and complete. The Company agrees to sign, deliver, and file any additional documents or certifications that you may consider necessary to perfect, continue, and preserve its
obligations under this Loan and to confirm your lien status on any Property. Time is of the essence. 
 13. CROSS-DEFAULT. A default under this
Agreement or any of the Loan Documents shall be deemed a default under (i) the Commercial Loan Agreement and loan documents executed in connection therewith by the Company dated even date herewith in connection with the $2,000,000 loan made by
you to the Company and (ii) the Commercial Loan Agreement and loan documents executed in connection therewith dated even date herewith in connection with the $6,500,000 loan made by you to the Company.  
 14. SIGNATURES. By signing under seal, the Company agrees to the terms contained in this Agreement. The Company also acknowledges receipt of a copy of this
Agreement. 
 BORROWER: 
 Optical Cable Corporation 
  

							
		 	By	 	 /s/ Tracy G. Smith
	 	(Seal)
		 	Name:	 	Tracy G. Smith	 	
		 	Title:	 	Vice President and CFO

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