Document:

EX-10.1

 Exhibit 10.1 

SECOND AMENDMENT TO LOAN AGREEMENT 

This SECOND AMENDMENT TO LOAN AGREEMENT (this “Agreement”) is made and entered into as of March 31, 2022 by and
among GRAHAM CORPORATION, a Delaware corporation (the “Borrower”), GHM ACQUISITION CORP., a Delaware corporation (“GHM”), GRAHAM ACQUISITION I, LLC, a Delaware limited liability company
(“Acquisition”), BARBER-NICHOLS, LLC, a Colorado limited liability company (“BNI” and, collectively with GHM and Acquisition, the “Guarantors” and each a “Guarantor”; the
Guarantors, together with the Borrower, the “Obligors” and each an “Obligor”), and BANK OF AMERICA, N.A. (the “Bank”). Capitalized terms used but not defined herein shall have the meanings given to
such terms in the Loan Agreement (as defined below). 
 RECITALS 

A. The Bank has extended credit to the Borrower pursuant to that certain Loan Agreement, dated as of June 1, 2021 (as amended by that
certain Amendment to Loan Agreement and Waiver dated as of February 4, 2022 and as further amended, supplemented or otherwise modified from time to time, the “Loan Agreement”), between the Bank and the Borrower. 

B. Each Guarantor has unconditionally guaranteed any and all of the Borrower’s obligations to the Bank pursuant to that certain
Continuing and Unconditional Guaranty, dated as of June 1, 2021 (as amended, supplemented or otherwise modified from time to time, the “Guaranty”), executed by each Guarantor in favor of the Bank. 

C. The Obligors have requested that the Bank agree to make certain amendments to the Loan Agreement. 

D. The Bank has agreed to do so, subject to the terms and conditions set forth in this Agreement. 

AGREEMENT 
 NOW,
THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

1. Estoppel, Acknowledgement and Reaffirmation. Each Obligor hereby acknowledges and agrees that, as of March 30, 2022: (a) the
outstanding principal balance of the Line of Credit was not less than $0.00; (b) the aggregate face amount of the issued and outstanding Letters of Credit was not less than $3,746,183.13; (c) the outstanding principal balance of the Facility
No. 2 Commitment was not less than $18,500,000.00, each of which amounts constitutes a valid and subsisting obligation of each Obligor to the Bank that is not subject to any credits, offsets, defenses, claims, counterclaims or adjustments of
any kind. Each Obligor acknowledges its obligations under the Loan Documents to which it is party, reaffirms that each of the liens and security interests created and granted in or pursuant to such Loan Documents is valid and subsisting and agrees
that this Agreement shall in no manner impair or otherwise adversely affect such obligations, liens or security interests. 

 2. Additional Reporting. 

(a) In addition to, and not in lieu of, the reporting provided for under the Loan Documents, promptly upon the Bank’s
request, each Obligor shall, and shall cause each Related Party to, deliver to the Bank such reporting items and other information as the Bank has requested and may request from time to time. 

(b) The Borrower shall cause appropriate representatives of the Borrower’s management team to participate in telephonic
status update conferences with the Bank, to be held every two weeks at a date and time mutually agreeable to the Borrower and Bank. 
 3.
Amendments to Loan Agreement. The Loan Agreement is hereby amended as follows: 
 (a) The following defined terms are
hereby added to Section 1 of the Loan Agreement in the appropriate alphabetical order: 
 “Compliance
Date” means the date on which (i) the Bank has received all financial information required under Section 8.2 of this Agreement, including without limitation, a compliance certificate, with respect to the
fiscal year ending on March 31, 2023 and such financial information confirms to the satisfaction of the Bank, in the good faith exercise of its business judgment, that no default exists under any Loan Document at such time and (ii) no
other default exists under any Loan Document at such time. 
 “Liquidity” means, as of any date of
determination, an amount equal to the sum of (a) the amount that is available to be borrowed under the Line of Credit plus (b) the aggregate amount of cash on hand of the domestic Obligors, on a consolidated basis, that is not
subject to any security interest, lien or any restriction on use, in each case, as of such date. 
 (b) Section 2.1(c)
of the Loan Agreement is hereby amended and restated in its entirety to read as follows: 
 (c) The Borrower agrees not to permit the
principal balance outstanding under the Line of Credit to exceed the Facility No. 1 Commitment. Until the occurrence of the Compliance Date, the Borrower agrees not to permit the principal balance outstanding under the Line of Credit to exceed
$15,000,000. If the Borrower exceeds either limitation set forth in this Section 2.1(c), the Borrower will immediately pay the excess to the Bank. 

(c) Section 8.2 of the Loan Agreement is hereby amended by adding the following new clauses (i) and (j) to such
section: 
 (i) Within two (2) business days after the end of each calendar week, the Borrower shall deliver a certificate setting
forth the amount of Liquidity as of the last business day of the prior week. Concurrently with any request for a borrowing under the Line of Credit, the Borrower shall deliver a certificate setting forth the amount of Liquidity as of the preceding
business day. 
 (j) Concurrently with the delivery of the audited financial statements required under
Section 8.2(a) of this Agreement, the Borrower shall execute and deliver a perfection certificate, in a form provided by the Bank, for the purpose of facilitating the Bank’s perfection of its security interests and
liens created under the Loan Documents. 

 (d) Section 8.3 of the Loan Agreement is hereby amended by adding the
following sentence to the end of such section: 
 The Borrower shall not be required to comply with the financial covenant set forth in this
Section 8.3 for the reporting periods ending March 31, 2022; June 30, 2022 and September 30, 2022. 

(e) Section 8.4 of the Loan Agreement is hereby amended by adding the following sentence to the end of such section: 

The Borrower shall not be required to comply with the financial covenant set forth in this Section 8.4 for the
reporting periods ending March 31, 2022; June 30, 2022 and September 30, 2022. 
 (f) The definitions of
“EBITDA” in Section 8.3 and Section 8.4 are each hereby amended and restated in their entirety to read as follows: 

“EBITDA” means net income, less income or plus loss from discontinued operations (including unusual and infrequent items, agreed to
at the sole discretion of the Bank), plus income taxes, plus interest expenses, plus depreciation, depletion and amortization, plus fees paid to the Bank in connection with amendments and waivers between the Borrower and the Bank, plus amounts paid
to the Bank in respect of reimbursement of the Bank for the reasonable and documented out-of-pocket fees and expenses of the Bank’s counsel, the Bank’s
financial advisor, the Valuation Firm and the Exam Firm (each as defined below). 
 (g) Section 8.5 of the Loan
Agreement is hereby amended and restated in its entirety to read as follows: 
 8.5 Dividends and Distributions. 

Not to declare or pay any dividends (except dividends paid in capital stock), redemptions of stock or membership interests, distributions and
withdrawals (as applicable) to its owners (a) prior to the occurrence of the Compliance Date or (b) while any default exists under Section 10 of this Agreement or would result from such dividend or payment. 

(h) Section 8.6 of the Loan Agreement is hereby amended by adding the following sentence to the end of such section: 

On or before September 1, 2022 and at all times thereafter, the Borrower shall cause each of the Obligors’ deposit accounts to be
either (i) subject to a deposit account control agreement reasonably acceptable to the Bank or (ii) maintained with the Bank. 

(i) The definition of “Margined Assets” in Section 8.24 of the Loan Agreement is hereby amended and restated in
its entirety to read as follows: 
 “Margined Assets” means the sum of (a) 80% of accounts receivable, net of bad debt reserve, as
shown on the most recent balance sheet of the Borrower prepared in accordance with GAAP as delivered to Bank plus (b) the lesser of (i) 50% of inventory or (ii) 50% of raw materials and finished goods, as shown on such balance sheet, but
in no event greater than the amount determined under clause (a) plus (c) 50% of net machinery and equipment. 

 (j) The Loan Agreement is hereby amended by adding the following new
Section 8.25, Section 8.26, Section 8.27, Section 8.28 and Section 8.29 thereto: 
 8.25 Maximum Net Loss.

 To maintain net income of not less than negative $10,000,000 for the twelve-month period ending March 31, 2022. 

8.26 Minimum EBITDA. 
 To
maintain EBITDA (as defined in Section 8.3 of this Agreement) of at least (x) $2,000,000 for the twelve-month period ending June 30, 2022 and (y) $2,250,000 for the twelve-month period ending September 30, 2022. 

8.27 Minimum Liquidity. 

To maintain Liquidity of at least (i) $10,000,000 prior to the occurrence of the Compliance Date and (ii) $20,000,000 from and after the
occurrence of the Compliance Date, in each case, measured as of the last business day of each calendar week. 
 8.28 Enterprise
Valuation. 
 To cooperate with one or more third parties engaged by the Bank for the purpose of conducting an enterprise valuation of
the Obligors (the “Valuation Firm”). The Obligors shall reimburse the Bank promptly upon demand for all reasonable and documented out-of-pocket fees and
expenses incurred in connection with the engagement of the Valuation Firm; provided that, so long as no default shall have occurred and be continuing, the Obligors shall not be required to reimburse the Bank for more than one enterprise
valuation per fiscal year. 
 8.29 Field Exam. 

To cooperate with one or more third parties engaged by the Bank for the purpose of conducting a field exam (the “Exam Firm”).
The Obligors shall reimburse the Bank promptly upon demand for all reasonable and documented out-of-pocket fees and expenses incurred in connection with the engagement
of the Exam Firm; provided that, so long as no default shall have occurred and be continuing, the Obligors shall not be required to reimburse the Bank for more than one field exam per fiscal year. 

4. Compliance Certificates. In each instance where the words “compliance certificate” appear in the Loan Agreement, including
without limitation Section 8.2(e) of the Loan Agreement, such words shall be deemed to mean a compliance certificate in the form attached hereto as Exhibit A, and all compliance certificates provided to the Bank pursuant to the Loan
Documents shall be provided in such form. 
 5. Post-Closing Covenants. 

(a) On or before the thirtieth (30th) calendar day following the Effective
Date, the Obligors shall deliver to the Bank, in form and substance satisfactory to the Bank, evidence of the termination of those certain United States Patent and Trademark Office lien filings filed against the Borrower and recorded
December 3, 2015 at Reel 5681, Frame 0100. 

 (b) On or before the thirtieth (30th) calendar day following the Effective Date, the Obligors shall deliver to the Bank, in form and substance satisfactory to the Bank: 

(i) a guaranty agreement and a security agreement from Graham India Private Ltd., an Indian corporation, in favor of the Bank guarantying and
securing, respectively, all obligations under the Loan Documents; and 
 (ii) a guaranty agreement and a security agreement from Graham
Vacuum and Heat Transfer Technology (Suzhou) Co., Ltd., a Chinese corporation, in favor of the Bank guarantying and securing, respectively, all obligations under the Loan Documents. 

(c) On or before the ninetieth (90th) calendar day following the Effective
Date, the Borrower shall execute and deliver a perfection certificate, in a form provided by the Bank, for the purpose of facilitating the Bank’s perfection of its security interests and liens created under the Loan Documents. 

6. Bank Financial Advisor. The Obligors shall continue to cooperate with the Bank’s financial advisor, Ankura Consulting Group,
LLC (the “Bank Financial Advisor”). Such cooperation shall include providing the Bank Financial Advisor with reasonable access to the Obligors’ financial records and representatives of the Obligors. The Obligors shall reimburse
the Bank promptly upon demand for all reasonable and documented out-of-pocket fees and expenses incurred in connection with the engagement of the Bank Financial Advisor.

 7. Payment of Fees and Expenses. Without in any way limiting the obligations of the Obligors under the Loan Documents, upon demand
therefor, the Obligors shall promptly pay all reasonable and documented out-of-pocket fees, costs and expenses incurred by the Bank (including, without limitation, the
reasonable and documented fees and out-of-pocket costs and expenses of the Bank’s counsel and the Bank Financial Advisor) in connection with this Agreement, the
Loan Agreement and the other Loan Documents and the various transactions contemplated hereby and thereby. 
 8. Effectiveness; Conditions
Precedent. This Agreement shall become effective as of the date hereof (the “Effective Date”) when, and only when, each of the following conditions shall have been satisfied or waived, in the sole discretion of the Bank: 

(a) the Bank shall have received counterparts of this Agreement duly executed by each Obligor and the Bank; 

(b) the Bank shall have received the Borrower’s three-year business plan and budget, as approved by the Borrower’s
Board of Directors, including quarterly income statements, balance sheets and statements of cash flows; 
 (c) the Bank shall
have received payment of all fees due and payable in connection with the effectiveness of this Agreement; 
  

 (d) the Bank shall have received reimbursement from the Obligors for all
fees and expenses of the Bank incurred in connection with this Agreement and the other Loan Documents through the Effective Date, including without limitation the reasonable fees and expenses of the Bank’s counsel and financial advisor; and

 (e) the Bank shall have received such certificates of resolutions or other action, incumbency certificates and/or other
certificates of authorized officers of each Obligor as the Bank may require evidencing the identity, authority and capacity of each authorized officer thereof authorized to act as an authorized officer in connection with this Agreement and the other
Loan Documents. 
 9. Incorporation of Agreement. Except as specifically modified herein, the terms of the Loan Agreement and the
other Loan Documents shall remain in full force and effect. The execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power or remedy of the Bank under the Loan Documents, or constitute a waiver or
amendment of any provision of the Loan Documents, except as expressly set forth herein. The breach of any provision or representation under this Agreement shall constitute an immediate event of default under the Loan Agreement, and this Agreement
shall constitute a Loan Document. 
 10. Representations and Warranties. Each Obligor represents and warrants to the Bank as follows:

 (a) After giving effect to this Agreement, no default or event of default exists under the Loan Agreement or the other
Loan Documents. 
 (b) After giving effect to this Agreement, the representations and warranties of the Obligors contained in
the Loan Documents are true, accurate and complete on and as of the Effective Date to the same extent as though made on and as of such date, except to the extent such representations and warranties specifically relate to an earlier date. 

(c) Each Obligor has the full power and authority to enter, execute and deliver this Agreement and perform its obligations
hereunder, under the Loan Agreement, and under each of the other Loan Documents. The execution, delivery and performance by each Obligor of this Agreement, and the performance by each Obligor of the Loan Agreement and each other Loan Document to
which it is a party, in each case, are within such Person’s powers and have been authorized by all necessary corporate, limited liability or partnership action of such Person. 

(d) This Agreement has been duly executed and delivered by such Person and constitutes such Person’s legal, valid and
binding obligations, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’
rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity). 

(e) No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental
authority or third party is required in connection with the execution, delivery or performance by such Person of this Agreement. 

(f) The execution and delivery of this Agreement does not (i) violate, contravene or conflict with any provision of its
organization documents or (ii) materially violate, contravene or conflict with any laws applicable to it or any of its subsidiaries. 

11. No Actions, Claims. As of the date hereof, each Obligor hereby represents, acknowledges and confirms that such Person has no
knowledge of any actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in law or in equity, against any member of the Bank Group (as defined below) arising from any action by any member of the Bank Group, or
the failure of any member of the Bank Group to act, in any way in connection with this Agreement, the Loan Agreement or the other Loan Documents on or prior to the date hereof. 

 12. Release. In consideration of the Bank’s agreements set forth herein, each
Obligor hereby releases and forever discharges the Bank and each of the Bank’s predecessors, successors, assigns, officers, managers, directors, employees, agents, attorneys, representatives and affiliates (hereinafter, all of the above
collectively referred to as the “Bank Group”) from any and all claims, counterclaims, demands, damages, debts, suits, liabilities, actions and causes of action of any nature whatsoever, in each case to the extent arising in
connection with any of the Loan Documents through the Effective Date, whether arising at law or in equity, whether known or unknown, whether liability be direct or indirect, liquidated or unliquidated, whether absolute or contingent, foreseen or
unforeseen, and whether or not heretofore asserted, which any Obligor may have or claim to have against any member of the Bank Group. 
 13.
Incorporation of Agreement. Except as specifically modified herein, the terms of the Loan Documents shall remain in full force and effect. The execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right,
power or remedy of the Bank under the Loan Documents, or constitute a waiver or amendment of any provision of the Loan Documents, except as expressly set forth herein. The breach of any provision or representation under this Agreement shall
constitute an immediate event of default under the Loan Agreement, and this Agreement shall constitute a Loan Document. 
 14. No Third
Party Beneficiaries. This Agreement and the rights and benefits hereof shall inure to the benefit of each of the parties hereto and their respective successors and assigns. No other Person (other than any member of the Bank Group who is not a
party to this Agreement with respect to the provisions of Sections 11 and 12 hereof, which Persons are intended to be third party beneficiaries of this Agreement) shall have or be entitled to assert rights or benefits under this
Agreement. 
 15. Entirety. This Agreement and the other Loan Documents embody the entire agreement among the parties hereto and
supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof. This Agreement and the other Loan Documents represent the final agreement among the parties and may not be contradicted by evidence of
prior, contemporaneous or subsequent oral agreements of the parties. 
 16. Counterparts; Electronic Delivery. This Agreement may be
executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, and it shall not be necessary in making proof of this Agreement to produce or account for more than one such counterpart. Delivery of
an executed counterpart of this Agreement by facsimile, .pdf or other electronic means shall be effective as an original. 
 17.
Governing Law; Venue and Jurisdiction; Waiver of Jury Trial; Waiver of Class Actions. The governing law, venue and jurisdiction, waiver of jury trial and waiver of class actions provisions found in Sections 11.2, 11.3, 11.5
and 11.6 of the Loan Agreement are hereby incorporated by reference, mutatis mutandis. 
 18. Further Assurances. Each of the
parties hereto agrees to execute and deliver, or to cause to be executed and delivered, all such instruments as may reasonably be requested to effectuate the intent and purposes, and to carry out the terms, of this Agreement. 

 19. Miscellaneous. 

(a) Section headings in this Agreement are included herein for convenience of reference only and shall not constitute a part of
this Agreement for any other purpose. 
 (b) Wherever possible, each provision of this Agreement shall be interpreted in such
a manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this Agreement. 
 (c) Except as otherwise
provided in this Agreement, if any provision contained in this Agreement is in conflict with, or inconsistent with, any provision in the Loan Documents, the provision contained in this Agreement shall govern and control. 

[Signature pages follow.] 

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

			
	BORROWER:	  	GRAHAM CORPORATION,
		  	a Delaware corporation
		
		  	By: /s/ Jeffrey Glajch                            
		  	Name: Jeffrey Glajch
		  	Title: CFO
		
	GUARANTORS:	  	GHM ACQUISITION CORP.,
		  	a Delaware corporation
		
		  	By: /s/ Jeffrey Glajch                            
		  	Name: Jeffrey Glajch
		  	Title: CFO
		
		  	GRAHAM ACQUISITION I, LLC,
		  	a Delaware limited liability company
		
		  	By: /s/ Jeffrey Glajch                            
		  	Name: Jeffrey Glajch
		  	Title: CFO
		
		  	BARBER-NICHOLS, LLC,
		  	a Colorado limited liability company
		
		  	By: /s/ Jeffrey Glajch                            
		  	Name: Jeffrey Glajch
		  	Title: CFO

 GRAHAM CORPORATION 

SECOND AMENDMENT TO LOAN AGREEMENT 

			
	BANK:	  	BANK OF AMERICA, N.A.
		
		  	By: /s/ Andrew J. Maidman                            
		  	Name: Andrew J. Maidman
		  	Title: Senior Vice President

 GRAHAM CORPORATION 

SECOND AMENDMENT TO LOAN AGREEMENT 

 Exhibit A 

[FORM OF] COMPLIANCE CERTIFICATE 

Date:                     

I,
                            , an authorized financial officer of GRAHAM CORPORATION, a Delaware
corporation (the “Borrower”), hereby certify that, to the best of my knowledge and belief, in my capacity as an authorized financial officer of the Borrower and not in my individual capacity, with respect to that certain Loan
Agreement, dated as of June 1, 2021 (as amended, restated, amended and restated, extended, supplemented or otherwise modified from time to time, the “Loan Agreement”; the terms defined therein being used herein as therein
defined), among the Borrower and Bank of America, N.A. (together with its successors and assigns, the “Bank”): 
 1. This
compliance certificate is delivered for the [fiscal year of the Borrower][fiscal quarter of the Borrower] ended                     , 20
        . 
 [Use following paragraph 2 for fiscal
year-end financial statements:] 
 [2. The year-end
audited financial statements required by Section 8.2(a) of the Loan Agreement for the fiscal year of the Borrower ended as of the date set forth in paragraph 1, together with the report and opinion of certified public accountant or firm of
independent public accountants required by such section, have been delivered to the Bank.] 
 [Use following paragraph 2 for fiscal quarter-end financial statements:] 
 [2. The unaudited quarterly financial statements required by
Section 8.2(b) of the Loan Agreement for the fiscal quarter of the Borrower ended as of the date set forth in paragraph 1 have been delivered to the Bank.] 

3. The undersigned has reviewed and is familiar with the terms of the Loan Agreement and has made, or has caused to be made, a review of the
transactions and financial condition of the Borrower and its Subsidiaries during the accounting period covered by the financial statements delivered herewith. 

4. A review of the activities of the Borrower and its Subsidiaries during such accounting period has been made under the supervision of the
undersigned with a view to determining whether during such accounting period the Borrower and its Subsidiaries performed and observed all their respective obligations under the Loan Documents, and 

[select one:] 
 [to the
knowledge of the undersigned, during such period, no Default or Event of Default has occurred and is continuing under the Loan Agreement or the other Loan Documents.] 

[or:] 
 [to the knowledge
of the undersigned, during such period, the following is a list of each Default or Event of Default that has occurred and is continuing, the nature and status of such Default or Event of Default, and actions that have been taken or are proposed to
be taken to cure such Default or Event of Default:] 
 [Include the following paragraphs for fiscal
quarter-end financial statements:] 

 5. Attached hereto as Schedule 1 is the calculation of the Funded Debt to EBITDA
Ratio as of the last day of the fiscal quarter covered by the financial statements delivered herewith. Such calculations are true, correct and complete on and as of the date of this compliance certificate. 

6. Attached hereto as Schedule 2 is the calculation of the Basic Fixed Charge Coverage Ratio as of the last day of and for period
ending on the last day of the period covered by the financial statements delivered herewith. Such calculations are true, correct and complete on and as of the date of this compliance certificate. 

7. Attached hereto as Schedule 3 is the calculation of the Liquidity as of the last day of and for period ending on the last day of the
period covered by the financial statements delivered herewith. Such calculations are true, correct and complete on and as of the date of this compliance certificate. 

8. Attached hereto as Schedule 4 is the calculation of the EBITDA as of the last day of and for period ending on the last day of the
period covered by the financial statements delivered herewith. Such calculations are true, correct and complete on and as of the date of this compliance certificate. 

[signature page follows] 

 IN WITNESS WHEREOF, the undersigned has executed this Compliance Certificate as of the date
first written above. 
  

			
	GRAHAM CORPORATION,
	A Delaware corporation
		
	By:	 	  

	Name:	 	
	Title:	 	

 GRAHAM CORPORATION 

Schedule 1 - Calculation of Consolidated Leverage Ratio 
  

					
	 Calculation of Consolidated Funded Indebtedness:
	  

	 (a) all outstanding liabilities for borrowed money and other interest-bearing liabilities,
including current and long term debt; provided that for the avoidance of doubt, shall not include operating lease liabilities or letters of credit that are secured by cash.
	  	$	[___	] 
	 (a) all issued letters of credit that are not secured by cash
	  	$	[___	] 
	 (c) less the non-current portion of Subordinated
Liabilities
	  	$	[___	] 
		  			
	 Consolidated Funded Indebtedness (sum of (a) through (c) above):
	  	$	[___	] 
		  			
	 Consolidated EBTIDA for the period of the four (4) fiscal quarters most recently ended:
(see Schedule 4)
	  	$	[___	] 
		  			
	 Consolidated TTM EBITDA (requirement for TTM Q1 and TTM Q2 FY 2023):
	  	$	[___	] 
		  			
	 Ratio of Consolidated Funded Indebtedness to Consolidated EBITDA (requirement for TTM Q3 and
TTM Q4 FY 2023):
	  	 	[___]:[___	] 

 GRAHAM CORPORATION 

Schedule 2 - Calculation of Consolidated Fixed Charge Coverage Ratio 
  

					
	 Calculation of Consolidated Cash Flow for the most recently completed four
(4) fiscal quarters:
	  

	 Consolidated EBITDA for such period: (see Schedule 4)
	  	$	[___	] 
	 minus (a) maintenance capital expenditures for such period
	  	$	[___	] 
	 Consolidated Cash Flow (sum of Consolidated EBITDA minus (a) above):
	  	$	[___	] 
		  			
	 Calculation of Consolidated Fixed Charges for the most recently completed four (4) fiscal
quarters:
	  			
	 (a) the sum of interest expense
	  	$	[___	] 
	 (b) current portion of long term debt and the current portion of capitalized leased obligations
paid for such period
	  	$	[___	] 
	 (c) cash taxes paid
	  	$	[___	] 
	 (d) and cash dividends paid
	  	$	[___	] 
	 Consolidated Fixed Charges (sum of Consolidated EBITDA minus
(a) above):
	  	$	[___	] 
		  			
	 Ratio of Consolidated Cash Flow to Consolidated Fixed Charges (requirement for TTM Q3 and TTM
Q4 FY 2023):
	  	 	[___]:[___	] 

 GRAHAM CORPORATION 

Schedule 3 - Calculation of Consolidated Asset Coverage Ratio 
  

					
	 Calculation of Margined Assets:
	  

	 (a) 80% of accounts receivable, net of bad debt reserve, as shown on the most recent balance sheet
of the Borrower prepared in accordance with GAAP as delivered to Bank
	  	$	[___	] 
	 (b) the lesser of (a) 50% of Inventory or (b) 50% of Raw Materials and 50% of Finished
Goods
	  	$	[___	] 
	 (i) 50% of Inventory
	  	$	[___	] 
	 (i) 50% of Raw Materials and 50% of Finished Goods
	  	$	[___	] 
	 (c) 50% of Net Machinery and Equipment
	  	$	[___	] 
	 Margined Assets (sum of (a), (b) and (c) above):
	  	$	[___	] 
		  			
	 Consolidated Outstanding Principal on Line of Credit
	  			
	 (b) sum of (i) the principal balance outstanding under the Line of Credit and
(ii) the aggregate undrawn amount of all Letters of Credit as of such date
	  	$	[___	] 
		  			
	 Ratio of Consolidated Assect Coverage Ratio:
	  	 	[___]:[___	] 

 GRAHAM CORPORATION 

Schedule 4 - Consolidated Calculation of EBITDA 
  

																					
	 	  	Quarter
Ended	 	 	Quarter
Ended	 	 	Quarter
Ended	 	 	Quarter
Ended	 	 	Twelve Months
Ended	 
		  	 	[___	] 	 	 	[___	] 	 	 	[___	] 	 	 	[___	] 	 	 	[___	] 
	 Consolidated Net Income for such period
	  	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 
	 Plus:
	  				 				 				 				 			
	 (a) Consolidated Interest Charges for such period
	  	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 
	 (b) the provision for federal, state, local and foreign income taxes payable for such
period
	  	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 
	 (c) depreciation, depletion, and amortization for such period
	  	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 
	 (d) non-cash charges in respect of equity
compensation
	  	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 
	 (e) fees paid to the Bank in connection with amendments and waivers, reimbursement of the Bank for
the reasonable and documented out-of-pocket fees and expenses of the Bank’s counsel, the Bank Financial Advisor, the Valuation Firm and the Exam Firm
	  	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 
	 (f) severance charges for such period
	  	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 
	 (g) acquisition related expenses for such period
	  	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 
	 Consolidated EBITDA (sum of (a) through (g)):
	  	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 	 	$	[___	] 

 GRAHAM CORPORATION 

Schedule 5 - Calculation of Minimum Liquidity 
  

					
	 Calculation of Consolidated Liquidity:
	  

	 (a) availability under Line of Credit
	  	$	[___	] 
	 (a) aggregate domestic obligors Cash on Hand
	  	$	[___	] 
	 Consolidated Liquidity (sum of (a) and (b) above):
	  	$	[___	] 

 Reporting Requirements Letter 

BANK OF AMERICA, N.A. 
 March 31,
2022 
 Graham Corporation 
 20 Florence Avenue 

Batavia, New York 14020 
 Attention: Jeff Glajch, VP and CFO 

 

	Re:	 Reporting Requirements 

Ladies and Gentlemen: 
 Reference is made to that certain Loan
Agreement, dated as of June 1, 2021 (the “Loan Agreement”), by and among Graham Corporation, a Delaware corporation (the “Borrower” or “you”), and Bank of America, N.A.
(the “Bank”). Defined terms used herein and not defined herein shall have the meanings assigned thereto in the Loan Agreement. 

This letter (this “Reporting Requirements Letter”) is delivered to you in connection with the Second Amendment to Loan Agreement (the
“Second Amendment”) by and among the Borrower, the Guarantors party thereto and the Bank. 
 In connection with the Second
Amendment, you agree with the Bank that you will deliver to the Bank such reporting items and other information as the Bank has requested and may request from time to time, including without limitation the reporting items identified on Exhibit
A hereto. The failure to timely deliver any of the reporting items identified on such Exhibit shall constitute an immediate event of default under the Loan Agreement, and this Agreement shall constitute a Loan Document. 

This Reporting Requirements Letter shall be governed by and construed in accordance with the laws of the State of New York. This Reporting Requirements Letter
may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of
a signature page to this Reporting Requirements Letter by facsimile or other electronic means (e.g. “pdf” or “tif”) shall be effective as delivery of an original executed counterpart of this Reporting Requirements Letter. 

[THE BALANCE OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

 If the foregoing is in accordance with your understanding, please sign and return this Reporting
Requirements Letter to us. 
  

			
	Very truly yours,
	
	BANK OF AMERICA, N.A.
		
	By:	 	 /s/ Andrew J. Maidman

	Name:	 	Andrew J. Maidman
	Title:	 	Senior Vice President

 GRAHAM CORPORATION 

REPORTING REQUIREMENTS LETTER (SECOND AMENDMENT TO LOAN AGREEMENT) 

 ACCEPTED AND AGREED TO 

AS OF THE DATE FIRST ABOVE WRITTEN: 
  

			
	GRAHAM CORPORATION, a Delaware corporation
		
	By:	 	 /s/ Jeffrey Glajch

	Name:	 	Jeffrey Glajch
	Title:	 	CFO

 GRAHAM CORPORATION 

REPORTING REQUIREMENTS LETTER (SECOND AMENDMENT TO LOAN AGREEMENT) 

 Exhibit A 

Reporting Items 
 (1) Each week, a thirteen week
cash flow projection together with a report comparing actual cash flows for the preceding week against amounts projected for such week, with a narrative explanation of any significant variances. 

(2) Within five business days after delivery of each quarterly compliance certificate, updated projections for the next four fiscal quarters on a quarterly
basis, including balance sheet, income statement, statement of cash flows, projected financial covenants and consolidating profit and loss statement. 
 (3)
Annually, within two business after approval by the Board of Directors but in no event later than the last business day of March, a one-year business plan and budget, including monthly and quarterly income
statements, balance sheets, statements of cash flows and projected financial covenants, such business plan to include information on integration of the Borrower’s business operations with those of Barber-Nichols, LLC.1 
 (4) Annually, within two business days after approval by the Board of Directors but in no event later
than the last business day of March, a three-year business plan and budget, including quarterly income statements, balance sheets, statements of cash flows and projected financial covenants. 

(5) Annually, within two business days after approval by the Board of Directors but in no event later than the last business day of October, an interim updated
three-year business plan and budget, including (i) actual results for the fiscal year-to-date compared to budget, (ii) for the rest of the current fiscal year
and the subsequent fiscal year, monthly and quarterly income statements, balance sheets, statements of cash flows and projected financial covenants and (iii) for the remainder of such period, quarterly income statements, balance sheets,
statements of cash flows and projected financial covenants. 
 (6) Periodic updates on the status of filling the three new supervisor positions in process.

 (7) On or before the fifteenth day of each month, a report reconciling progress billing versus actual work completed on major contracts, such report to be
certified by the CEO and the CFO; provided that such report for the last month of each fiscal year shall be delivered on or before the forty-fifth day after the end of such month. 

(8) On or before the fifteenth day of each month, monthly payroll reporting, including overtime hours paid (weekly in one week arrears) and supporting schedule
of third party contractor services; provided that such report for the last month of each fiscal year shall be delivered on or before the forty-fifth day after the end of such month. 

(9) On or before the fifteenth day of each month, a monthly backlog report; provided that such report for the last month of each fiscal year shall be
delivered on or before the forty-fifth day after the end of such month. 
  

	1 	 This report shall be in lieu of the annual operating budget required under Section 8.2(f) of the Loan
Agreement. 

 (10) On or before the fifteenth day of each month, a detailed schedule of advance payments by project,
including the following categories: Original Deposit Amount, Remaining Deposit Amount and Inventory Held for Project; provided that such schedule for the last month of each fiscal year shall be delivered on or before the forty-fifth day after
the end of such month. 
 (11) On or before the thirtieth day of each month, monthly financial statements; provided that such financial statements for
the last month of each fiscal year shall be delivered on or before the forty-fifth day after the end of such month. 
 (12) On or before the fifteenth day of
each month, a monthly report, signed by the appropriate project managers, the CEO and the CFO, on the progress of major contracts, including (a) the following categories: Customer, Job Number, Selling Price, Material Hours, Material Cost, Labor
Hours, Labor Cost and Contribution Margin, Percentage of Completion and Overhead Factor and (b) the original estimated amounts and any changes or revised estimates; provided that such report for the last month of each fiscal year shall
be delivered on or before the forty-fifth day after the end of such month.Document

Exhibit 4.6

DESCRIPTION OF CAPITAL STOCK
The following description of the capital stock of BlackSky Technology Inc., a Delaware corporation (“us,” “our,” “we,” “BlackSky” or the “Company”) is a summary of the material terms of our common stock as specified in our amended and restated certificate of incorporation and amended and restated bylaws currently in effect. Because the following description is only a summary, it does not contain all of the information that may be important to you. For a complete description of matters set forth herein, you should refer to the amended and restated certificate of incorporation and the amended and restated bylaws, each previously filed with the Securities and Exchange Commission and incorporated by reference as an exhibit to the Annual Report on Form 10-K, as well as to the applicable provisions of the Delaware General Corporation Law (“DGCL”). 
General
The authorized capital stock of BlackSky consists of 400,000,000 shares, $0.0001 par value per share, of which: 300,000,000 shares are designated as Class A common stock (the “Class A Common Stock”) Common Stock; and 100,000,000 shares are designated as preferred stock.
Class A Common Stock
The amended and restated certificate of incorporation authorizes one class of common stock, the Class A Common Stock.
Dividend Rights
The DGCL permits a corporation to declare and pay dividends out of “surplus” or, if there is no “surplus”, out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. “Surplus” is defined as the excess of the net assets of the corporation over the amount determined to be the capital of the corporation by the board of directors. The capital of the corporation is typically calculated to be (and cannot be less than) the aggregate par value of all issued shares of capital stock. Net assets equals the fair value of the total assets minus total liabilities. The DGCL also provides that dividends may not be paid out of net profits if, after the payment of the dividend, capital is less than the capital represented by the outstanding stock of all classes having a preference upon the distribution of assets. Delaware common law also imposes a solvency requirement in connection with the payment of dividends.
Subject to preferences that may apply to any shares of our preferred stock outstanding at the time, the holders of our Class A Common Stock will be entitled to receive dividends out of funds legally available if our board of directors, in its discretion, determines to issue dividends and then only at the times and in the amounts that our board of directors may determine.
Voting Rights
Holders of our Class A Common Stock are entitled to one vote for each share held as of the record date for the determination of the stockholders entitled to vote on such matters, including the election and removal of directors, except as otherwise required by law. Under Delaware law, the right to vote cumulatively does not exist unless the certificate of incorporation specifically authorizes cumulative voting. Our amended and restated certificate of incorporation does not authorize cumulative voting and provides that no stockholder will be permitted to cumulate votes at any election of directors.
Right to Receive Liquidation Distributions
If we become subject to a liquidation, dissolution, or winding-up, the assets legally available for distribution to our stockholders would be distributable ratably among the holders of our Class A Common Stock and any participating series of our preferred stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of our preferred stock.
 
Other Matters
All outstanding shares of our Class A Common Stock will be fully paid and nonassessable. Our Class A Common Stock will not be entitled to preemptive rights and will not be subject to redemption or sinking fund provisions.
Preferred Stock

Our board of directors are authorized, subject to limitations prescribed by the DGCL, to issue preferred stock in one or more series, to establish from time to time the number of shares to be included in each series, and to fix the designation, powers, preferences, and rights of the shares of each series and any of its qualifications, limitations, or restrictions, in each case without further vote or action by our stockholders. Our board of directors are empowered to increase or decrease the number of shares of any series of preferred stock, but not below the number of shares of that series then outstanding, without any further vote or action by our stockholders. Our board of directors are able to authorize the issuance of preferred stock with voting or conversion rights that could adversely affect the voting power or other rights of the holders of Class A Common Stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring, or preventing a change in control of BlackSky and might adversely affect the market price of our Class A Common Stock and the voting and other rights of the holders of our Class A Common Stock. There are currently no plans to issue any shares of preferred stock.
Warrants
Public Warrants
As of December 31, 2021, there were an aggregate of 15,812,500 Public Warrants (“Public Warrants” and together with the Private Placement Warrants, as defined below, the “Warrants”) outstanding which entitle the holder to acquire Class A Common Stock. Each whole Public Warrant entitles the registered holder to purchase one share of Class A Common Stock at an exercise price of $11.50 per share, subject to adjustment as discussed in “—Anti-Dilution Adjustments” below. The Public Warrants are exercisable, subject to the registration conditions in the next paragraph and our obligation to have a registration statement declared effective covering the issuance of the shares issuable upon exercise of the warrants as discussed below. The Public Warrants will expire on September 9, 2026, at 5:00 p.m. New York City time, or earlier upon redemption or liquidation.
We are not be obligated to deliver any shares of Class A Common Stock pursuant to the exercise of a Public Warrant and we have no obligation to settle such Public Warrant exercise unless a registration statement under the Securities Act of 1933, as amended (the “Securities Act”) covering the issuance of the shares of Class A Common Stock issuable upon exercise of the Public Warrants is then effective and a current prospectus relating to those shares of Class A Common Stock is available, subject to satisfaction of our obligations described below with respect to registration. No Public Warrant is exercisable for cash or on a cashless basis, and we are not obligated to issue any shares to holders seeking to exercise their Warrants, unless the issuance of the shares upon such exercise is registered or qualified under the securities laws of the state of the exercising holder, or an exemption from registration is available. In the event that the conditions in the two immediately preceding sentences are not satisfied with respect to a Public Warrant, the holder of such Public Warrant will not be entitled to exercise such Public Warrant and such Public Warrant may have no value and expire worthless.
A registration statement covering the issuance of the shares of Class A Common Stock issuable upon exercise of the warrants was declared effective on December 16, 2021 and we have agreed to maintain a current prospectus relating to those shares of Class A Common Stock until the warrants expire or are redeemed. Notwithstanding the above, if the Class A Common Stock is at the time of any exercise of a Warrant not listed on a national securities exchange such that it satisfies the definition of a “covered security” under Section 18(b)(1) of the Securities Act, we may, at our option, require holders of Public Warrants who exercise their Public Warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event we so elect, we will not be required to file or maintain in effect a registration statement for the registration of the Class A Common Stock issuable upon exercise of the Warrants, but will use our best efforts to register or qualify the shares issuable upon the exercise of the Public Warrants under applicable blue sky laws to the extent an exemption is not available.
Private Placement Warrants
Except as set forth below, the terms of the Private Placement Warrants (the “Private Placement Warrants”), including the exercise period and expiration date, are identical to the Public Warrants. 4,162,500 of the Private Placement Warrants are exercisable at an exercise price of $11.50 per share and 4,162,500 of the Private Placement Warrants will not be exercisable unless and until the date that the Class A Common Stock reaches a trading price of $20.00 per share on the New York Stock Exchange (the “NYSE”) and are then exercisable at an exercise price of $20.00 per share, each subject to adjustment as discussed in “—Anti-Dilution Adjustments” below.
The Private Placement Warrants (including the Class A Common Stock issuable upon exercise of the Private Placement Warrants) are not redeemable by us for cash so long as they are held by the Sponsor or its permitted transferees except as set forth elsewhere in this prospectus. The Sponsor, or its permitted transferees, has the option to exercise the Private Placement Warrants on a cashless basis and will be entitled to certain registration rights. Otherwise, 

and except with the $20.00 exercise price for 4,162,500 Private Placement Warrants described above, the Private Placement Warrants have terms and provisions that are identical to those of the Public Warrants. If the Private Placement Warrants are held by holders other than the Sponsor or its permitted transferees, the Private Placement Warrants will be redeemable by us and exercisable by the holders on the same basis as the Public Warrants.
If the Sponsor or its permitted transferees elect to exercise the Private Placement Warrants on a cashless basis, they would pay the exercise price by surrendering their Warrants for that number of shares of Class A Common Stock equal to the quotient obtained by dividing (x) the product of the number of shares of Class A Common Stock underlying the Warrants, multiplied by the excess of the “fair market value” (defined below) over the exercise price of the Warrants by (y) the fair market value. The “fair market value” shall mean the average reported last sale price of the Class A Common Stock for the 10 trading days ending on the third trading day prior to the date on which the notice of exercise is sent to the holders of Warrants. If such holders remain affiliated with us, their ability to sell our securities in the open market will be significantly limited. We will have policies in place that prohibit insiders from selling our securities except during specific periods of time. Even during such periods of time when insiders will be permitted to sell our securities, an insider cannot trade in our securities if he or she is in possession of material non-public information. Accordingly, unlike public stockholders who could exercise their Warrants and sell the shares of Class A Common Stock received upon such exercise freely in the open market in order to recoup the cost of such exercise, the insiders could be significantly restricted from selling such securities.
Redemption of Warrants
Redemption of Warrants when the price per share of Class A Common Stock equals or exceeds $18.00.
Once the Warrants become exercisable, we may call the Warrants for redemption:
•In whole and not in part;
•At a price of $0.01 per Warrant;
•upon a minimum of 30 days’ prior written notice of redemption (the “30-day redemption period”), to each Warrant holder;

•if, and only if, the closing price of Class A Common Stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which BlackSky sends the notice of redemption to the Warrant holders; and
•provided that there is an effective registration statement covered the shares of Class A Common Stock issuable upon exercise of the Warrants and a current prospectus relating thereto, available throughout the 30-day redemption period or we have elected to require the exercise of the Warrants on a “cashless basis” as described in “—Redemption Procedures and Cashless Exercise.”
 
 
 
 
 
If and when the Warrants become redeemable by us pursuant to the foregoing redemption method, we may exercise our redemption right even we are unable to register or qualify the underlying securities for sale under all applicable state securities laws.
We have established the last of the redemption criterion discussed above to prevent a redemption call unless there is at the time of the call a significant premium to the Warrant exercise price. If the foregoing conditions are satisfied and we issue a notice of redemption of the Warrants, each Warrant holder will be entitled to exercise his, her or its Warrant prior to the scheduled redemption date. However, the price of the Class A Common Stock may fall below the $18.00 redemption trigger price as well as the $11.50 Warrant exercise price after the redemption notice is issued.
As described in “—Private Placement Warrants,” these redemption rights do not apply to Private Placement Warrants if at the time of the redemption, such Private Placement Warrants continue to be held by the Sponsor or its permitted transferees.
Redemption Procedures and Cashless Exercise

If we call the Warrants for redemption as described above, our management will have the option to require all holders that wish to exercise Warrants to do so on a “cashless basis.” The exercise price and number of shares of Class A Common Stock issuable upon exercise of the Warrants may be adjusted in certain circumstances including in the event of a stock dividend, recapitalization, reorganization, merger or consolidation. Additionally, in no event will we be required to net cash settle the Warrants. In determining whether to require all holders to exercise their Warrants on a “cashless basis”, our management will consider, among other factors, our cash position, the number of Warrants that are outstanding and the dilutive effect on our stockholders of issuing the maximum number of shares of Class A Common Stock issuable upon the exercise of the Warrants. In such event, each holder would pay the exercise price by surrendering the Warrants for that number of shares of Class A Common Stock equal to the quotient obtained by dividing (i) the product of the number of shares of Class A Common Stock underlying the Warrants, multiplied by the excess of the “fair market value” (defined below) over the exercise price of the Warrants by (ii) the fair market value. The “fair market value” shall mean the average reported last sale price of the Class A Common Stock as reported during the 10 trading day period ending on the trading day prior to the date on which notice of redemption is sent to the holders of the Warrants. If our management takes advantage of this option, the notice of redemption will contain the information necessary to calculate the number of shares of Class A Common Stock to be received upon exercise of the Warrants, including the “fair market value” in such case. Requiring a cashless exercise in this manner will reduce the number of shares to be issued and thereby lessen the dilutive effect of a Warrant redemption.
A holder of a Warrant may notify us in writing in the event it elects to be subject to a requirement that such holder will not have the right to exercise such Warrant, to the extent that after giving effect to such exercise, such person (together with such person’s affiliates), would beneficially own in excess of 9.8% (or such other amount as specified by the holder) of the shares of Class A Common Stock outstanding immediately after giving effect to such exercise.
 
Exercise of Warrants
The Warrants may be exercised upon surrender of the Warrant certificate on or prior to the expiration date at the offices of the warrant agent, with the subscription form duly executed, accompanied by full payment of the exercise price (or on a cashless basis, if applicable), by certified or official bank check payable to the warrant agent, for the number of Warrants being exercised. The Warrant holders do not have the rights or privileges of holders of Class A Common Stock and any voting rights until they exercise their Warrants and receive shares of Class A Common Stock. After the issuance of shares of Class A Common Stock upon exercise of the Warrants, each holder will be entitled to one vote for each share held of record on all matters to be voted on by stockholders.
Anti-Dilution Adjustments
If the number of outstanding shares of Class A Common Stock is increased by a stock dividend payable in shares of Class A Common Stock, or by a split-up of shares of Class A Common Stock or other similar event, then, on the effective date of such stock dividend, split-up or similar event, the number of shares of Class A Common Stock issuable on exercise of each Warrant will be increased in proportion to such increase in the outstanding shares of Class A Common Stock. A rights offering to holders of Class A Common Stock entitling holders to purchase shares of Class A Common Stock at a price less than the “fair market value” (as defined below) will be deemed a stock dividend of a number of shares of Class A Common Stock equal to the product of (i) the number of shares of Class A Common Stock actually sold in such rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable for Class A Common Stock) multiplied by (ii) one minus the quotient of (a) the price per share of Class A Common Stock paid in such rights offering divided by (b) the fair market value. For these purposes (i) if the rights offering is for securities convertible into or exercisable for Class A Common Stock, in determining the price payable for Class A Common Stock, there will be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise or conversion and (ii) “fair market” value means the volume weighted average price of Class A Common Stock as reported during the 10 trading day period ending on the trading day prior to the first date on which the shares of Class A Common Stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such rights.
In addition, if we, at any time while the Warrants are outstanding and unexpired, shall pay a dividend or make a distribution in cash, securities or other assets to the holders of Class A Common Stock on account of such shares of Class A Common Stock (or other shares of our capital stock into which the Warrants are convertible), other than (i) as described above or (ii) certain ordinary cash dividends, and in those other cases applicable per the terms of that certain Warrant Agreement, dated October 31, 2019, by and between the Company and the warrant agent named therein (the “Warrant Agreement”), then the Warrant exercise price will be decreased, effective immediately after the effective date of such extraordinary dividend, by the amount of cash and/or the fair market value of any securities or other assets paid on each share of Class A Common Stock in respect of such extraordinary dividend.

If the number of outstanding shares of our Class A Common Stock is decreased by a consolidation, combination, reverse stock split or reclassification of shares of Class A Common Stock or other similar event, then, on the effective date of such consolidation, combination, reverse stock split, reclassification or similar event, the number of shares of Class A Common Stock issuable on exercise of each Warrant will be decreased in proportion to such decrease in outstanding shares of Class A Common Stock.
Whenever the number of shares of Class A Common Stock purchasable upon the exercise of the Warrants is adjusted, as described above, the Warrant exercise price will be adjusted by multiplying the Warrant exercise price immediately prior to such adjustment by a fraction (i) the numerator of which will be the number of shares of Class A Common Stock purchasable upon the exercise of the Warrants immediately prior to such adjustment, and (ii) the denominator of which will be the number of shares of Class A Common Stock so purchasable immediately thereafter.
In case of any reclassification or reorganization of the outstanding shares of Class A Common Stock (other than those described above or that solely affects the par value of such shares of Class A Common Stock), or in the case of any merger or consolidation of BlackSky with or into another corporation (other than a consolidation or merger in which BlackSky is the continuing corporation and that does not result in any reclassification or reorganization of our outstanding shares of Class A Common Stock), or in the case of any sale or conveyance to another corporation or entity of the assets or other property of BlackSky as an entirety or substantially as an entirety in connection with which BlackSky is dissolved, the holders of the Warrants will thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in the Warrants and in lieu of the shares of our Class A Common Stock immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares of stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the holder of the Warrants would have received if such holder had exercised their Warrants immediately prior to such event, provided, however, that if such holders were entitled to exercise a right of election as to the kind or amount of securities, cash or other assets receivable upon such consolidation or merger, then the kind and amount of securities, cash or other assets for which each Warrant will become exercisable will be deemed to be the weighted average of the kind and amount received per share by such holders in such consolidation or merger that affirmatively make such election, and if a tender, exchange or redemption offer has been made to and accepted by such holders under circumstances in which, upon completion of such tender or exchange offer, the maker thereof, together with members of any group (within the meaning of Rule 13d-5(b)(1) under the Securities Exchange Act of 1934 (the “Exchange Act”)) of which such maker is a part, and together with any affiliate or associate of such maker (within the meaning of Rule 12b-2 under the Exchange Act) and any members of any such group of which any such affiliate or associate is a part, own beneficially (within the meaning of Rule 13d-3 under the Exchange Act) more than 50% of the outstanding shares of Class A Common Stock, the holder of a Warrant will be entitled to receive the highest amount of cash, securities or other property to which such holder would actually have been entitled as a stockholder if such Warrant holder had exercised the Warrant prior to the expiration of such tender or exchange offer, accepted such offer and all of the common stock held by such holder had been purchased pursuant to such tender or exchange offer, subject to adjustments (from and after the consummation of such tender or exchange offer) as nearly equivalent as possible to the adjustments provided for in the Warrant Agreement, provided, further, that if less than 70% of the consideration receivable by the holders of Class A Common Stock in such a transaction is payable in the form of Class A Common Stock in the successor entity that is listed for trading on a national securities exchange or is quoted in an established over-the-counter market, or is to be so listed for trading or quoted immediately following such event, and if the registered holder of the Warrant properly exercises the Warrant within 30 days following public disclosure of such transaction, the Warrant exercise price will be reduced as specified in the Warrant Agreement based on the per share consideration minus the Black-Scholes Warrant Value (as defined in the Warrant Agreement) of the Warrant.
The purpose of such exercise price reduction is to provide additional value to holders of the Warrants when an extraordinary transaction occurs during the exercise period of the Warrants pursuant to which the holders of the Warrants otherwise do not receive the full potential value of the Warrants in order to determine and realize the option value component of the Warrant. This formula is to compensate the Warrant holder for the loss of the option value portion of the Warrant due to the requirement that the Warrant holder exercise the Warrant within 30 days of the event. We believe the Black-Scholes model is a commonly accepted pricing model for estimating fair market value where no quoted market price for an instrument is available.
Amendments
The Warrants were issued in registered form under a Warrant Agreement between Continental Stock Transfer & Trust Company, as warrant agent, and the Company. The Warrant Agreement provides that the terms of the Warrants may be amended without the consent of any holder to cure any ambiguity or correct any defective provision, or to add or change any other provisions with respect to matters or questions arising under the Warrant Agreement as the parties may deem necessary or desirable and that the parties deem do adversely affect the interest of the Warrant holders. All other 

modifications or amendments, including any amendment to increase the exercise price or shorten the exercise period and any amendment to the terms of only the Private Placement Warrants, requires the approval by the holders of at least 65% of the then-outstanding Public Warrants. We may lower the exercise price or extend the duration of the exercise period without the consent of the Warrant holders.
Form S-8 Registration Statement
We have filed a registration statement on Form S-8 under the Securities Act to register the shares of Class A Common Stock issued or issuable under our 2021 Equity Incentive Plan (the “2021 Plan”) and our 2021 Employee Stock Purchase Plan (the “ESPP”). The Form S-8 registration statement became effective automatically upon filing. The Form S-8 covers shares of Class A Common Stock underlying the 2021 Plan, which can be sold in the public market upon issuance, subject to Rule 144 limitations applicable to affiliates and vesting restrictions. We may file in the future one or more registration statements on Form S-8 under the Securities Act to register additional shares of Class A Common Stock issued or issuable under our 2021 Plan or our ESPP.
Anti-Takeover Provisions
Certain provisions of Delaware law, the amended and restated certificate of incorporation, and the amended and restated bylaws, which are summarized below, may have the effect of delaying, deferring, or discouraging another person from acquiring control of BlackSky. They are also designed, in part, to encourage persons seeking to acquire control of BlackSky to negotiate first with our board of directors.
Section 203 of the DGCL
We will be governed by the provisions of Section 203 of the DGCL. In general, Section 203 of the DGCL prohibits a public Delaware corporation from engaging in a “business combination” with an “interested stockholder” (as those terms are defined in Section 203 of the DGCL) for a period of three years after the date of the transaction in which the person became an interested stockholder, unless:
•either the merger or the transaction which resulted in the stockholder becoming an interested stockholder was approved by the board of directors prior to the time that the stockholder became an interested stockholder;
•upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding shares owned by directors who are also officers of the corporation and shares owned by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or
•at or subsequent to the time the stockholder became an interested stockholder, the merger was approved by our board of directors and authorized at an annual or special meeting of the stockholders, and not by written consent, by the affirmative vote of at least  two-thirds of the outstanding voting stock which is not owned by the interested stockholder.
 
In general, Section 203 defines a “business combination” to include mergers, asset sales, and other transactions resulting in financial benefit to a stockholder and an “interested stockholder” as a person who, together with affiliates and associates, owns, or, within the prior three years, did own, 15% or more of our outstanding voting stock. These provisions may have the effect of delaying, deferring, or preventing changes in control of BlackSky.
Classified Board of Directors
The amended and restated certificate of incorporation provides that our board of directors is divided into three classes, designated Class I, Class II and Class III. The term of the initial Class I directors shall terminate on the date of the first annual meeting of stockholders, the term of the initial Class II directors shall terminate on the date of the second annual meeting of stockholders, and the term of the initial Class III directors shall terminate on the date of the third annual meeting of stockholders. At each annual meeting of stockholders, successors to the class of directors whose term expires at that annual meeting will be elected for a three-year term.
Removal of Directors
The amended and restated certificate of incorporation provides that stockholders may only remove a director for cause and only by a vote of no less than 66 2/3% of the voting power of the issued and outstanding capital stock entitled to vote in the election of directors, voting together as a single class.

Board of Directors vacancies
The amended and restated certificate of incorporation and amended and restated bylaws authorize only a majority of the remaining members of our board of directors, although less than a quorum, to fill vacant directorships, including newly created seats. In addition, subject to the rights of holders of any series of preferred stock, the number of directors constituting our board of directors will be permitted to be set only by a resolution of our board of directors. These provisions would prevent a stockholder from increasing the size of our board of directors and then gaining control of our board of directors by filling the resulting vacancies with its own nominees. This will make it more difficult to change the composition of our board of directors and will promote continuity of management.
Stockholder action; special meeting of stockholders
The amended and restated certificate of incorporation and amended and restated bylaws provides that stockholders may not take action by written consent but may only take action at annual or special meetings of the stockholders. As a result, a holder controlling a majority of our capital stock would not be able to amend the amended and restated bylaws, amend the amended and restated certificate of incorporation or remove directors without holding a meeting of the stockholders called in accordance with the amended and restated certificate of incorporation and amended and restated bylaws. The amended and restated certificate of incorporation and amended and restated bylaws further provide that special meetings of our stockholders may be called only by a majority of our board of directors, the Chairperson of our board of directors, or our Chief Executive Officer or President, thus prohibiting stockholder action to call a special meeting. These provisions might delay the ability of our stockholders to force consideration of a proposal or for stockholders controlling a majority of our capital stock to take any action, including the removal of directors.
Advance notice requirements for stockholder proposals and director nominations
The amended and restated certificate of incorporation provides that advance notice of stockholder nominations for the election of directors and of business to be brought by stockholders before any meeting of the stockholders will be given in the manner and to the extent provided in the bylaws. The amended and restated bylaws provide advance notice procedures for stockholders seeking to bring business before the annual meeting of stockholders or to nominate candidates for election as directors at the annual meeting of stockholders. The amended and restated bylaws also specify certain requirements regarding the form and content of a stockholder’s notice. These provisions might preclude stockholders from bringing matters before the annual meeting of stockholders or from making nominations for directors at the annual meeting of stockholders if the proper procedures are not followed. These provisions may also discourage or deter a potential acquirer from conducting a solicitation of proxies to elect the acquirer’s own slate of directors or otherwise attempting to obtain control of BlackSky.
No cumulative voting
The DGCL provides that stockholders are not entitled to cumulate votes in the election of directors unless a corporation’s certificate of incorporation provides otherwise. The amended and restated certificate of incorporation does not provide for cumulative voting and provides that no stockholder will be permitted to cumulate votes at any election of directors.
Amendment of amended and restated certificate of incorporation provisions
Any amendment of certain provisions in the amended and restated certificate of incorporation will require approval by holders of at least 66 2/3% of the voting power of the then outstanding voting securities entitled to vote thereon, voting together as a single class. These provisions include, among others, provisions related to the board composition, board removal rights, cumulative voting rights, and provisions related to stockholder action and advance notice, in each case as summarized above.
Authorized but Unissued Capital Stock
Delaware law does not require stockholder approval for any issuance of authorized shares. However, the listing requirements of the NYSE, which would apply if and so long as the Class A Common Stock remains listed on the NYSE, require stockholder approval of certain issuances equal to or exceeding 20% of the then outstanding voting power or then outstanding number of shares of Class A Common Stock. Additional shares that may be issued in the future may be used for a variety of corporate purposes, including future public offerings, to raise additional capital or to facilitate acquisitions.
One of the effects of the existence of unissued and unreserved common stock may be to enable our board of directors to issue shares to persons friendly to current management, which issuance could render more difficult or discourage an attempt to obtain control of BlackSky by means of a merger, tender offer, proxy contest or otherwise and 

thereby protect the continuity of management and possibly deprive stockholders of opportunities to sell their shares of Class A Common Stock at prices higher than prevailing market prices.
Dissenters’ Rights of Appraisal and Payment
Under the DGCL, with certain exceptions, our stockholders have appraisal rights in connection with a merger or consolidation of BlackSky. Pursuant to the DGCL, stockholders who properly request and perfect appraisal rights in connection with such merger or consolidation will have the right to receive payment of the fair value of their shares as determined by the Delaware Court of Chancery.
Stockholders’ Derivative Actions
Under the DGCL, any of our stockholders may bring an action in our name to procure a judgment in our favor, also known as a derivative action, provided that the stockholder bringing the action is a holder of our securities at the time of the transaction to which the action relates or such stockholder’s stock thereafter devolved by operation of law.
Exclusive Forum
The amended and restated certificate of incorporation provides that, unless otherwise consented to by us in writing, the Court of Chancery of the State of Delaware (or, if the Court of Chancery does not have jurisdiction, another State court in Delaware or the federal district court for the District of Delaware) will, to the fullest extent permitted by law be the sole and exclusive forum for the following types of actions or proceedings: (i) any derivative action or proceeding brought on our behalf; (ii) any action asserting a claim of breach of a duty (including any fiduciary duty) owed by any of our current or former directors, officers, stockholders, employees or agents to us or our stockholders; (iii) any action arising pursuant to any provision of the DGCL or the amended and restated certificate of incorporation or the amended and restated bylaws; (iv) any action asserting a claim against us or any of our current or former directors, officers, stockholders, employees or agents governed by the internal affairs doctrine of the State of Delaware, in each such case unless the Court of Chancery (or such other state or federal court located within the State of Delaware, as applicable) has dismissed a prior action by the same plaintiff asserting the same claims because such court lacked personal jurisdiction over an indispensable party named as a defendant therein. The amended and restated certificate of incorporation further provides that, unless otherwise consented to by us in writing to the selection of an alternative forum, the federal district courts of the United States will, to the fullest extent permitted by law, be the sole and exclusive forum for the resolution of any complaint against any person in connection with any offering of our securities, asserting a cause of action arising under the Securities Act. Any person or entity purchasing or otherwise acquiring any interest in our securities shall be deemed to have notice of and consented to this provision. These provisions may have the effect of discouraging lawsuits against BlackSky or our directors and officers.
Limitations on Liability and Indemnification of Directors and Officers
The DGCL authorizes corporations to limit or eliminate the personal liability of directors to corporations and their stockholders for monetary damages for breaches of directors’ fiduciary duties, subject to certain exceptions. Our amended and restated certificate of incorporation includes a provision that eliminates the personal liability of directors for monetary damages for any breach of fiduciary duty as a director to the fullest extent permitted by the DGCL as the same exists or as may hereafter be amended from time to time. The effect of these provisions is to eliminate our rights and the rights of our stockholders, through stockholders’ derivative suits on our behalf, to recover monetary damages from a director for breach of fiduciary duty as a director, including breaches resulting from grossly negligent behavior. However, exculpation does not apply to any director if the director has acted in bad faith, knowingly or intentionally violated the law, authorized illegal dividends or redemptions or derived an improper benefit from his or her actions as a director.
Our amended and restated certificate of incorporation provides that we must indemnify, to the fullest extent permitted by applicable law, any of our directors or officers who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (a “Proceeding”) by reason of the fact that he or she is or was our director or officer or is or was serving at our request as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with any such Proceeding. We are required to indemnify a person in connection with a Proceeding (or part thereof) initiated by such person only if the Proceeding (or part thereof) was, or is, authorized by the board of directors.
We have the power to indemnify, to the fullest extent permitted by applicable law, any of our directors, officers, employees or agents who was or is a party or is threatened to be made a party to any Proceeding by reason of the fact that he or she is or was our director, officer, employee or agent or is or was serving at our request as a director, officer, 

employee or agent of another corporation, partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such person in connection with any such Proceeding.
We believe that these indemnification and advancement provisions and insurance are useful to attract and retain qualified directors and executive officers. The limitation of liability and indemnification provisions in our amended and restated certificate of incorporation and bylaws may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. These provisions also may have the effect of reducing the likelihood of derivative litigation against directors and officers, even though such an action, if successful, might otherwise benefit us and our stockholders. In addition, your investment may be adversely affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions.
There is currently no pending material litigation or proceeding involving any of our directors, officers or employees for which indemnification is sought. 
 
Transfer Agent and Registrar
The transfer agent and registrar for the Class A Common Stock and warrant agent for the Warrants is Continental Stock Transfer & Trust Company. The transfer agent and registrar’s address is 1 State Street—30th Floor, New York, NY 10004.
Listing
The Class A Common Stock and Public Warrants are listed on the NYSE under the symbols “BKSY” and “BKSY.W”, respectively.

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