Document:

DAKT_2012.11.14_EX10.4

EXHIBIT A

REAFFIRMATION OF AND SECOND AMENDMENT TO
UNLIMITED GUARANTY AGREEMENT

This Reaffirmation and Second Amendment to Unlimited Guaranty Agreement (this “Amendment”), dated as of the 9th day of November, 2012, is made by and between Daktronics, Inc., a South Dakota corporation (the “Borrower”) and Bank of America, N.A. (the “Bank”).

Recitals

A.    The Borrower and the Lender are parties to that certain Loan Agreement dated as of December 23, 2010, as amended by that certain First Amendment to Loan Agreement dated February 1, 2011, that certain Second Amendment to Loan Agreement dated November 15, 2011, that certain Third Amendment to Loan Agreement dated July 2, 2012 and that certain Fourth Amendment to Loan Agreement of even date herewith  (as amended, the “Loan Agreement”), whereby Lender extended certain credit facilities to the Borrower upon the terms and conditions set forth in the Loan Agreement.

B.    Section 2.1 of the Loan Agreement provides that Bank agrees to make available to Borrower's Foreign Subsidiaries, certain Alternative Borrowing, provided that, among other conditions, the credit available to Borrower under the Loan Agreement would be reduced dollar-for-dollar by the amount of the Alternative Borrowing, and provided further that Borrower agrees to unconditionally and without limitation guarantee such Alternative Borrowing pursuant to the terms of an Unlimited Guaranty Agreement dated December 23, 2010, as amended by the Second Amendment to Loan Agreement (changing the principal amount referenced in paragraph “A” of the Recitals from $10,000,000 to $20,000,000), that certain Fourth Amendment to Loan Agreement (changing the principal amount referenced in paragraph “A” of the Recitals from $20,000,000 to $35,000,000) and that certain Reaffirmation and First Amendment to Unlimited Guaranty Agreement, dated July 2, 2012 (as amended, the “Guaranty).  Capitalized terms used herein without definition shall have the meanings ascribed in the Loan Agreement and Guaranty.  

C.    The parties are in mutual agreement that the Guaranty should be further amended as provided herein, the effect of which, among other things, includes an expansion of the Guaranty to cover additional Foreign Subsidiaries as well as an expansion of the types of products and services included as Alternative Borrowing.  

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained, it is agreed as follows:

		
	1.
	Amendments to Guaranty. The Guaranty is hereby amended as follows:

		
	a.
	The introductory paragraph is hereby amended and restated in its entirety to read as follows:

THIS UNLIMITED GUARANTY AGREEMENT (“Guaranty”) is made and entered into as of the 23rd day of December, 2010, by and among Daktronics, Inc. a South Dakota corporation (“Borrower”) to and for the benefit of Bank of America, N.A., a national banking association, together with all of its affiliates and subsidiaries of any kind (collectively, “Bank”).

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2.    No Other Changes. Except as explicitly amended by this Amendment, all of the terms and conditions of the Guaranty shall remain in full force and effect.
3.    Reaffirmation and Acknowledgement of Increased Commitment. Borrower hereby ratifies and reaffirms all of the terms, conditions, provisions, agreements, requirements, promises, obligations, duties, covenants and representations applicable to it in the Guaranty, as amended above and as increased by the Fourth Amendment to Loan Agreement, and that the Guaranty remains in full force and effect and is valid, binding and fully enforceable in accordance with its terms.  Further, Borrower acknowledges and confirms the increase in the Revolving Loan to Thirty Five Million Dollars ($35,000,000) and agrees to the corresponding increase in its obligations under the Guaranty.
4.    Representations and Warranties. Borrower hereby represents and warrants as follows:
(a)    it has the corporate power and authority to execute, deliver and perform the terms and provisions of this Amendment and each other Loan Documents, including the Guaranty, to which it is a party and has taken all necessary corporate action to authorize the execution, delivery and performance by it of this Amendment and each such other Loan Documents;
(b)    it has duly executed and delivered this Amendment and each other loan document to which it is a party, and this Amendment and each such other loan document constitute its legal, valid and binding obligations, enforceable in accordance with their terms, except to the extent that the enforceability hereof or thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors' rights and by equitable principles (regardless of whether enforcement is sought in equity or at law);
(c)    all of the representations and warranties contained in the Guaranty are correct on and as of the date hereof as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date.
5.    Miscellaneous. This Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. 
[Signature Page to Follow]

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IN WITNESS WHEREOF, the parties have caused this Third Amendment to be duly executed as of the date first written above.

	
			
	BORROWER:
	 
	BANK:

	DAKTRONICS, INC.
	 
	BANK OF AMERICA, N.A.

	 
	 
	 

	By: /s/ James B. Morgan
	 
	By:  /s/ Alok Jain

	Name:  James B. Morgan
	 
	Name:  Alok Jain

	Title:  Chief Executive Officer
	 
	Title:  Assistant Vice President

	 
	 
	 

	By:  /s/ Sheila M. Anderson
	 
	 

	Name:  Sheila M. Anderson
	 
	 

	Title:  Chief Executive Officer
	 
	 

[SIGNATURE PAGE TO REAFFIRMATION OF AND SECOND AMENDMENT TO
 UNLIMITED GUARANTY AGREEMENT]

3DAKT_2012.11.14_EX10.5

EXHIBIT B

AMENDED AND RESTATED REVOLVING NOTE

$35,000,000.00                                                                                                                                           Brookings, South Dakota
                                                                                                                                                                          November 9, 2012

FOR VALUE RECEIVED, Daktronics, Inc., a South Dakota corporation (“Borrower”), hereby promises to pay to the order of Bank of America, N.A., a national banking association, 317 - 6th Avenue, Des Moines, Iowa 50309 (“Lender”), at or at such other place as Lender may from time to time designate in writing, in lawful money of the United States of America, the principal sum of Thirty-Five Million and No/100 Dollars ($35,000,000.00) or so much thereof as may be advanced hereunder and to pay interest on the outstanding principal balance hereof from time to time at a fluctuating rate tied to the One-Month Reserve Adjusted Reuters London Inter-Bank Offering Rate (“LIBOR”), as determined on the first Business Day of each month, plus 1.50%.  Any principal of, and to the extent permitted by applicable law, any interest on this Note, which is not paid when due shall bear interest, from the date due until paid, at a rate per annum equal to the non-default rate plus 4%.

Interest shall be computed on the basis of actual days elapsed and a year of 360 days.  Interest only shall be paid on the first day of each month, commencing October 1, 2012, and continuing on the first day of each month thereafter.  The total unpaid principal amount and all interest thereon shall be payable on November 15, 2013 (the “Revolving Loan Maturity Date”).  THIS NOTE REQUIRES A BALLOON PAYMENT.

Borrower may borrow, repay and re-borrow hereunder in accordance with the terms and conditions of the Loan Agreement, dated December 23, 2010, as amended by the First Amendment to Loan Agreement, dated February 1, 2011, by the Second Amendment to Loan Agreement, dated November 15, 2011, by the Third Amendment to Loan Agreement dated July 2, 2012 and by the Fourth Amendment to Loan Agreement of even date herewith executed by Borrower and Lender (the “Loan Agreement”).  All capitalized terms not otherwise defined herein shall have the meanings given them in the Loan Agreement.  Borrower may prepay this Note in whole at any time, or in part from time to time, without penalty or premium.  No prepayment shall suspend any required payments of either principal or interest on this Note or reduce the amount of any scheduled payment.  All prepayments on this Note shall be applied to accrued but unpaid interest on the amount prepaid, then to principal, and any other sums due and unpaid to Lender under the Loan Documents, in such manner and order as Lender may elect in its discretion.  The credit available to Borrower under this Note will be reduced dollar for dollar by the face amount of all Alternative Borrowing and Domestic Letters of Credit and as otherwise provided in the Loan Agreement.

Failure to exercise any option provided herein shall not constitute a waiver of the right to exercise the same in the event of any subsequent default.  Borrower agrees that if, and as often as, this Note is given to an attorney for collection or to defend or enforce any of Lender's rights hereunder, Borrower will pay to Lender Lender's reasonable attorneys' fees together with all courts costs and other expenses paid by Lender.

Borrower waives presentment, protest and demand, notice of protest, demand and of dishonor and nonpayment of this Note and any lack of diligence or delays in collection or enforcement of this Note.  Borrower agrees that this Note, or any payment hereunder, may be extended from time to time, and Borrower consents to the release of any party liable for the obligation evidenced by this Note, the release of any of the security for this Note, the acceptance of any other security therefor, or any other indulgence or forbearance whatsoever, all without notice to any party and without affecting the liability of Borrower. 

A “Default” or “Event of Default” as described in the Loan Agreement shall constitute a default under this Note.  Any notice or demand to or upon Borrower or Lender under this Note shall be given as provided in the Loan Agreement.

This Note represents an amendment, restatement and substitution of the obligations initially set forth in the Revolving Note of the Borrower in favor of Lender dated November 15, 2011 in the original principal of $20,000,000 (the “Original Note”).  This Note is intended as an amendment, restatement and substitution but shall not constitute a novation of the indebtedness represented by the Original Note.

THIS NOTE SHALL BE CONSTRUED UNDER AND GOVERNED BY THE LAWS OF THE STATE OF SOUTH DAKOTA, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS OR PRINCIPLES THEREOF, BUT GIVING EFFECT TO FEDERAL LAWS OF THE UNITED STATES APPLICABLE TO NATIONAL BANKS.  WHENEVER POSSIBLE, EACH PROVISION OF THIS NOTE AND ANY OTHER STATEMENT, INSTRUMENT OR TRANSACTION CONTEMPLATED HEREBY OR RELATING HERETO, SHALL BE INTERPRETED IN SUCH MANNER AS TO BE EFFECTIVE AND VALID UNDER SUCH APPLICABLE LAW, BUT, IF ANY PROVISION OF THIS NOTE OR ANY OTHER STATEMENT, INSTRUMENT OR TRANSACTION CONTEMPLATED HEREBY OR RELATING HERETO SHALL BE HELD TO BE PROHIBITED OR 

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INVALID UNDER SUCH APPLICABLE LAW, SUCH PROVISION SHALL BE IN EFFECT ONLY TO THE EXTENT OF SUCH PROHIBITION OR INVALIDITY, WITHOUT INVALIDATING THE REMAINDER OF SUCH PROVISION OR THE REMAINING PROVISIONS OF THIS NOTE OR ANY OTHER STATEMENT, INSTRUMENT OR TRANSACTION CONTEMPLATED HEREBY OR RELATING HERETO.

AT THE OPTION OF LENDER, THIS NOTE MAY BE ENFORCED IN ANY FEDERAL COURT OR SOUTH DAKOTA CIRCUIT COURT SITTING IN SIOUX FALLS, SOUTH DAKOTA; AND BORROWER CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT.  IN THE EVENT BORROWER COMMENCES ANY ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS NOTE, LENDER AT ITS OPTION SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES ABOVE-DESCRIBED, OR IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE DISMISSED WITHOUT PREJUDICE.
BORROWER AND LENDER EACH IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE OR ANY OF THE LOAN DOCUMENTS (AS DEFINED IN THE LOAN AGREEMENT) OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

	
		
	 
	DAKTRONICS, INC.

	 
	 

	 
	By:  /s/ James B. Morgan

	 
	Name:  James B. Morgan

	 
	Title:  Chief Executive Officer

	 
	 

	 
	By:  /s/ Sheila M. Anderson

	 
	Name:  Sheila M. Anderson

	 
	Title:  Chief Financial Officer

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