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Exhibit 10.1

AMENDMENT NO. 1
TO
FIFTH AMENDED AND RESTATED CREDIT AGREEMENT

This Amendment No. 1 (“Amendment”) dated as of May 4, 2020 (the “First Amendment Date”) to the Agreement, as defined below, is entered into by and among Astronics Corporation (“Borrower”), certain lenders under the Agreement (the “Lenders”) and HSBC Bank USA, National Association, as agent for the Lenders under the Agreement (“Agent”), and as the Swingline Lender and Issuing Bank.  Terms used herein and not otherwise defined are used with their defined meanings from the Agreement.

Recitals

A. The Borrower, the Agent and the Lenders are the parties to a Fifth Amended and Restated Credit Agreement dated as of February 16, 2018 (the “Agreement”).
B. Pursuant to Section 9.14 of the Credit Agreement, the Borrower has requested that the Agent and the Lenders amend certain terms of the Credit Agreement.
C. The Lenders and the Agent are agreeable to the foregoing to the extent set forth in this Amendment.
D. The Borrower and each of the Guarantors will benefit from the changes to the Agreement set forth herein.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants set forth herein, and of the loans or other extensions of credit heretofore, now or hereafter made by the Lenders to, or for the benefit of, the Borrower and its Subsidiaries, the parties hereto agree as follows:

1. Conditions Precedent to this Amendment.  This Amendment shall be effective as of the date first written above once the following conditions precedent are satisfied:
1.1 Amendment Documentation.  The Agent shall have received a copy of this Amendment executed by all parties hereto.
1.2 No Default.  As of the date hereof, after giving effect hereto, no Default or Event of Default shall have occurred and be continuing.
1.3 Representations and Warranties.  The representations and warranties contained in the Agreement shall be true, correct and complete as of the date hereof as though 

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made on such date, except to the extent such representations and warranties are expressly limited to a specific date.
1.4 Payment of Fee.  The Borrower shall have paid to the Agent, for the ratable benefit of each Lender that has provided its signature hereto to the Agent no later than 12:00 pm, New York City time by May 4, 2020 a consent fee in the amount of 15 basis points of the Commitment for each Lender that so consents (the “Closing Date Consent Fee”).  Any fees required to be paid on or before the effectiveness of this Amendment (including, without limitation, the Closing Date Consent Fee) shall have been paid.  
2. Amendments.  The Agreement is amended as follows:  
2.1 Article I entitled “Definitions” is amended by deleting the present definitions of “ABR” or “Alternate Base Rate”, “Applicable Commitment Fee Rate”, “Applicable Margin”, “LIBOR Rate”, “Maximum Limit”, “ Threshold Amount” and “Total Revolving Credit Commitment” and replacing them with the following definitions:
“ABR” or “Alternate Base Rate” - For any day, a rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to the greater of (i) the Prime Rate, (ii) the Federal Funds Effective Rate from time to time in effect plus 0.5%, (iii) the 30-Day LIBOR Rate on such day (or if such day is not a Business Day, the immediately preceding Business Day) plus 1% or (iv) two percent (2%).  Any change in the Alternate Base Rate due to a change in the Prime Rate, the Federal Funds Effective Rate or the Libor Rate shall be effective from and including the effective date of such change in the Prime Rate, the Federal Funds Effective Rate or the Libor Rate, respectively.
“Applicable Commitment Fee Rate” - (i) Initially, until changed in accordance with the following provisions, the Applicable Commitment Fee Rate shall be 0.35%; and (ii) commencing with the fiscal quarter of Borrower following the expiration of the Suspension Period, and continuing with each fiscal quarter thereafter, the Agent shall determine the Applicable Commitment Fee Rate in accordance with the following matrix, based on the Leverage Ratio:  
									
	

Level
	

Leverage  Ratio
	

Commitment Fee

			
	1	< 1.5 to 1.0
	0.10%
	2	> 1.5 to 1.0 but <  2.0 to 1.0
	0.125%
	3	>2.0 to 1.0 but <  3.0 to 1.0
	0.15%
	4	> 3.0 to 1.0 but < 3.5 to 1.0
	0.175%
	5	>3.5 to 1.0 but < 4.0 to 1.0
	0.20%
	6	>4.0 to 1.0	0.35%

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Changes in the Applicable Commitment Fee Rate shall become effective three (3) Business Days immediately following the date of delivery by Borrower to the Agent of a financial statement and a Compliance Certificate required to be delivered pursuant to Sections 5.2(a) and (b) of this Agreement, and shall be based upon the Leverage Ratio in effect at the end of the financial period covered by such financial statement and Compliance Certificate.  Notwithstanding the foregoing provisions, during any period when the Borrower has failed to deliver such a financial statement and Compliance Certificate when due, the Applicable Commitment Fee Rate shall be applied at Level 6 above as of the first Business Day after the date on which such financial statement and Compliance Certificate were required to be delivered, regardless of the Leverage Ratio at such time, until the date the required financial statement and Compliance Certificate have been delivered.  Any changes in the Applicable Commitment Fee Rate shall be determined by the Agent in accordance with the provisions set forth in this definition and the Agent will promptly provide notice of such determinations to the Borrower and the Lenders.  Any such determination by the Agent shall be conclusive absent manifest error.
        
“Applicable Margin” - (i) Initially, until changed in accordance with the following provisions, the Applicable Margin shall be 1.25% for ABR Loans and 2.25% for Libor Loans; (ii) commencing with the fiscal quarter of Borrower following the expiration of the Suspension Period, and continuing with each fiscal quarter thereafter, the Agent shall determine the Applicable Margin in accordance with the following matrix, based on the Leverage Ratio:
												
	

Level
	Leverage
Ratio
	Libor
Rate Option
	

ABR Option

				
	1	< 1.5 to 1.0
	1.0%	0%
	2	> 1.5 to 1.0 but < 2.0 to 1.0
	1.125%	0.125%
	3	> 2.0 to 1.0 but < 3.0 to 1.0
	1.25%	0.25%
	4	> 3.0 to 1.0 but < 3.5 to 1.0
	1.375%	0.375%
	5	> 3.5 to 1.0 but < 4.0 to 1.0
	1.50%	0.50%
	6	> 4.0 to 1.0	2.25%	1.25%

Changes in the Applicable Margin shall become effective three (3) Business Days immediately following the date of delivery by Borrower to the Agent of a financial statement and a Compliance Certificate required to be delivered pursuant to Sections 5.2(a) and (b) of this Agreement, and shall be based upon the Leverage Ratio in effect at the end of the financial period covered by such financial statement and Compliance Certificate.  Notwithstanding the foregoing provisions, during any period when the Borrower has failed to deliver such 

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financial statement and Compliance Certificate when due, the Applicable Margin shall be applied at Level 6 above as of the first Business Day after the date on which such financial statement and Compliance Certificate were required to be delivered, regardless of the Leverage Ratio at such time, until the date the required financial statement and Compliance Certificate have been delivered.  Any changes in the Applicable Margin shall be determined by the Agent in accordance with the provisions set forth in this definition and the Agent will promptly provide notice of such determinations to the Borrower and the Lenders.  Any such determination by the Agent shall be conclusive absent manifest error.

“Libor Rate” - the reserve adjusted rate of interest per annum determined by HSBC Bank to be applicable to any selected Interest Period appearing on the ICE Benchmark Administration (or any successor thereto approved by HSBC Bank in its reasonable discretion), as published by Reuters or other commercially available source providing quotations of LIBOR (“LIBOR”) as selected by HSBC Bank in its reasonable discretion from time to time, as determined for each Interest Period at approximately 11:00 a.m. (London time), on a Libor Interest Determination Date prior to the commencement of such Interest Period, for U.S. Dollar deposits (for delivery on the first day of the applicable Interest Period) with a term equivalent to such Interest Period; provided, however, if any such rate of interest is less than one, the Libor Rate shall be deemed to be one percent (1%).  

“Maximum Limit” - The maximum aggregate amount which the Borrower can borrow from time to time under the Revolving Credit which on the date of this Agreement is $375,000,000.

“Threshold Amount” - As of any date, the greater of $25,000,000 or 10% of Borrower’s Consolidated Net Tangible Assets as of the last fiscal quarter of the Borrower most recently ended, for which financial statements are available or required to be delivered under Section 5.2 of this Agreement. For the avoidance of doubt for purposes of Sections 6.1(g) and 6.3(c), any subsequent change in the Threshold Amount occurring after any Indebtedness was incurred or Investment was made will not result in a violation of this Agreement so long as such Indebtedness or Investment was permitted when incurred, made or taken, provided that during the Suspension Period, the term “Threshold Amount” as used in the definition of “Material Indebtedness”,  Section 6.1 and 6.3(c) of the Agreement shall be $5,000,000.

“Total Revolving Credit Commitment” - The sum of the Revolving Credit Commitments of the Lenders, as in effect from time to time.  Commencing on the First Amendment Date, the Total Revolving Credit Commitment is equal to $375,000,000.

2.2 Article I entitled “Definitions” is further amended to add the following new definitions in the appropriate alphabetical order:   

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 “Benchmark Replacement” - The sum of: (a) the alternate benchmark rate (which may include Term SOFR) that has been selected by the Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a rate of interest as a replacement to LIBOR for U.S. dollar-denominated syndicated credit facilities and (b) the Benchmark Replacement Adjustment; provided that, if the Benchmark Replacement as so determined would be less than zero, or one during the Suspension Period, the Benchmark Replacement will be deemed to be one for the purposes of this Agreement.
“Benchmark Replacement Adjustment” - With respect to any replacement of LIBOR with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Agent and the Borrower giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of LIBOR with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of LIBOR with the applicable Unadjusted Benchmark Replacement for U.S. dollar-denominated syndicated credit facilities at such time.
“Benchmark Replacement Conforming Changes” - With respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of “ABR”, the definition of “Interest Period,” timing and frequency of determining rates and making payments of interest and other administrative matters) that the Agent decides may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Agent in a manner substantially consistent with market practice (or, if the Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as the Agent decides is reasonably necessary in connection with the administration of this Agreement).
“Benchmark Replacement Date” - The earlier to occur of the following events with respect to LIBOR:
(a) in the case of clause (a) or (b) of the definition of “Benchmark Transition Event,” the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of LIBOR permanently or indefinitely ceases to provide LIBOR; or

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(b) in the case of clause (c) of the definition of “Benchmark Transition Event,” the date of the public statement or publication of information referenced therein.
“Benchmark Transition Event” - The occurrence of one or more of the following events with respect to LIBOR:
(a) a public statement or publication of information by or on behalf of the administrator of LIBOR announcing that such administrator has ceased or will cease to provide LIBOR, permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide LIBOR;
(b) a public statement or publication of information by the regulatory supervisor for the administrator of LIBOR, the U.S. Federal Reserve System, an insolvency official with jurisdiction over the administrator for LIBOR, a resolution authority with jurisdiction over the administrator for LIBOR or a court or an entity with similar insolvency or resolution authority over the administrator for LIBOR, which states that the administrator of LIBOR has ceased or will cease to provide LIBOR permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide LIBOR; or
(c) a public statement or publication of information by the regulatory supervisor for the administrator of LIBOR announcing that LIBOR is no longer representative.
“Benchmark Transition Start Date” - (a) In the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication) and (b) in the case of an Early Opt-in Election, the date specified by the Agent by notice to the Borrower, so long as the Agent has not received, by such date, written notice of objection to such Early Opt-In Election from the Borrower. 
“Benchmark Unavailability Period” - If a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to LIBOR and solely to the extent that LIBOR has not been replaced with a Benchmark Replacement, the period (a) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced LIBOR for all purposes hereunder in accordance with Section 2.8 and (b) ending at the time that a Benchmark Replacement has replaced LIBOR for all purposes hereunder pursuant to the Section 2.8.

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“Consolidated Cash Balance” -  At any time, (a) the aggregate amount of cash, Cash Equivalents (as defined in Section 6.3), marketable securities, treasury bonds and bills, certificates of deposit, investments in money market funds and commercial paper, in each case, held or owned by (either directly or indirectly), credited to the account of or that would otherwise be required to be reflected as an asset on the balance sheet of the Borrower or any of its Subsidiaries less (b) the sum of (i) any restricted cash or Cash Equivalents to pay royalty obligations, working interest obligations, suspense payments, severance taxes, payroll, payroll taxes, other taxes, employee wage and benefit payments and trust and fiduciary obligations or other obligations of the Borrower or any Subsidiary to third parties and for which the Borrower or such Subsidiary has issued checks or has initiated wires or ACH transfers (or, in the Borrower’s discretion, expects to issue checks or initiate wires or ACH transfers within 10 Business Days) in order to pay, (ii) other amounts for which the Borrower or a Subsidiary has issued checks or has initiated wires or ACH transfers but have not yet been subtracted from the balance in the relevant account of the Borrower or such Subsidiary and (iii) any cash or Cash Equivalents of the Borrower or any Subsidiary (x) constituting purchase price deposits held in escrow pursuant to a binding and enforceable purchase and sale agreement with a third party containing customary provisions regarding the payment and refunding of such deposits or (y) placed on deposit or in escrow with a trustee to discharge or defease indebtedness.
        “Early Opt-in Election” - the occurrence of:
(a) the determination by the Agent that with respect to LIBOR, similar United States dollar-denominated syndicated credit facilities being executed at such time, or that include language similar to that contained in Section 2.28, are being executed or amended (as applicable) to incorporate or adopt a new benchmark interest rate to replace LIBOR, and 
(b) the election by the Agent to declare that an Early Opt-in Election has occurred and the provision by the Agent of written notice of such election to the Borrower.
“First Amendment Date” - May 4, 2020.
“Federal Reserve Bank of New York’s Website” - The website of the Federal Reserve Bank of New York at http://www.newyorkfed.org, or any successor source. 
        “LIBOR” - As defined in the definition of “Libor Rate”.
“Liquidity” - At any time, the sum of (a) the aggregate amount of unrestricted cash and Cash Equivalents of the Borrower and its Subsidiaries that would appear on the consolidated balance sheet of the Borrower and its Subsidiaries at such 

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time plus (b) the aggregate amounts of the unused Revolving Credit Commitments at such time.
“Relevant Governmental Body” - The Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.
“Regulatory Debt Facility” – With respect to the Borrower or any of its Subsidiaries, Indebtedness entered into pursuant to the laws, rules, or regulations of the United States (including, for the avoidance of doubt, any agency or instrumentality of the United States, including the Federal Reserve and other federal bank regulatory agencies) promulgated under the Coronavirus Aid, Relief and Economic Security Act or any other legislation, regulation, act, or similar law in response to, or related to the effect of, COVID-19, in each case, as amended from time to time, provided the terms of and security for, such Indebtedness has been approved of, in writing, by the Required Lenders in their reasonable discretion.
“SOFR” - With respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the administrator of the benchmark, (or a successor administrator) on the Federal Reserve Bank of New York’s Website.
“Suspension Period” - The period from the First Amendment Date until June 30, 2021.
“Term SOFR” - The forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.
“Unadjusted Benchmark Replacement” - The Benchmark Replacement excluding the Benchmark Replacement Adjustment.
2.3 Section 2.1 of the Agreement entitled “Revolving Credit” is amended to add the following new subsection (d):
(d) Maximum Consolidated Cash Balance:  Notwithstanding anything to the contrary in this Agreement, no Revolving Loans shall be requested or made during the Suspension Period if, immediately prior to the making of such Revolving Loan and immediately after giving effect thereto (including the application of the proceeds thereof) the Consolidated Cash Balance exceeds $100,000,000.
2.4 Section 2.7 of the Agreement entitled “Prepayments and Payments” is amended to add the following new subsection (c):

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(c) Mandatory Prepayments - Excess Cash Balances:  If on the last Business Day of each calendar month during the Suspension Period, the Borrower’s Consolidated Cash Balance exceeds $100,000,000, the Borrower shall prepay, within five (5) Business Days, a principal amount of Revolving Loans in an amount equal to such excess Consolidated Cash Balance.  Notwithstanding anything to the contrary contained in this Agreement, any such mandatory prepayment shall not require a payment of accrued interest on the principal amount prepaid on the date of such prepayment.

2.5 The following is added to the Agreement as a new Section 2.28:
“2.28  Effect of Benchmark Transaction Event.
(a) Benchmark Replacement.  Notwithstanding anything to the contrary herein or in any other document executed in connection herewith, upon the occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, the Agent and the Borrower may amend this Agreement to replace LIBOR with a Benchmark Replacement.  Any such amendment with respect to  Benchmark Transaction Event will become effective at 5:00 p.m. (New York time) on the tenth (10th) Business Day after the Agent has provided such proposed amendment to all Lenders and the Borrower so long as the Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders. Any such amendment with respect to an Early-Opt-in Election will become effective on the date that Lenders comprising the Required Lenders have delivered to the Agent written notice that such Required Lenders accept such amendment.  No replacement of LIBOR with a Benchmark Replacement pursuant to this Article titled “Effect of Benchmark Transition Event” will occur prior to the applicable Benchmark Transition Start Date.
(b) Benchmark Replacement Conforming Changes.  In connection with the implementation of a Benchmark Replacement, the Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other document executed in connection herewith, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement. 
(c) Notices; Standards for Decisions and Determinations.  The Agent will promptly notify the Borrower and the Lenders of (i) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date and Benchmark Transition Start Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Benchmark Replacement Conforming Changes and (iv) the commencement or 

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conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Agent pursuant to this Section 2.28, including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in the Agent’s sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section 2.28.
(d) Benchmark Unavailability Period.  Upon the Borrower’s receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any request for a Libor Loan of, conversion to or continuation of Libor Loan to be made, converted or continued during any Benchmark Unavailability Period and, failing that, the Borrower will be deemed to have converted, any such request into a request for a Loan of or conversion to Prime Rate Loan.
(e) Limitation on Agent Responsibility.  The Agent does not warrant or accept any responsibility for, and shall not have any liability in respect to (a) the administration of, submission of or any other matter related to LIBOR, any component definition thereof or rates reference in the definition thereof or any alternative, comparable or successor rate thereto (including any then-current Benchmark or any Benchmark Replacement), including whether the composition or characteristics of any such alternative, comparable or successor rate (including any Benchmark Replacement) will be similar to, or produce the same value of economic equivalence of, LIBOR or any other Benchmark, or (b) the effect, implementation or composition of any Benchmark Replacement Conforming Changes.

2.6 Section 5.2 of the Agreement is deleted in its entirety and replaced with the following:
“5.2 Financial Reporting Requirements.  Furnish to the Agent and each Lender (a) within forty-five (45) days after the end of each of the first three quarters of each of its fiscal years, unaudited financial statements of the Borrower and its Subsidiaries, which statements shall consist of Consolidated and summary consolidating balance sheets as of the end of such quarter, and related statements of income, covering the period from the end of the Borrower’s immediately preceding fiscal year to the end of such quarter certified to be correct by the President, Chief Executive Officer, Executive Vice-President-Finance or Treasurer of the Borrower, who shall also furnish to the Agent and each Lender a duly completed and executed Compliance Certificate; (b) within ninety (90) days after the end of each of its fiscal years, audited Consolidated financial statements of the Borrower and its Subsidiaries, which shall consist of a Consolidated and consolidating balance sheet as of the end of such year and the related statements 

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of income, retained earnings and cash flows covering such fiscal year, audited by and together with an opinion of, in the case of such Consolidated financial statements, Ernst & Young LLP, or other independent certified public accountants satisfactory to the Agent, which report and opinion shall be prepared in accordance with GAAP and shall not be subject to any “going concern” or like qualification or exception, together with a Compliance Certificate from the President, Executive Vice President-Finance or Treasurer of the Borrower; (c) promptly, after their preparations copies of all such proxy statements, financial statements and reports which the Borrower sends to its stockholders, and copies of all regular, periodic and special reports, as well as all registration statements, which the Borrower files with the Securities and Exchange Commission; (d) upon reasonable request, and if applicable, promptly after the filing thereof with the Pension Benefit Guaranty Corporation, a copy of each annual report filed with respect to each Plan; (e) by the end of each of its fiscal years, a forecast of the statements of income and cash flows as of and through the close of its following fiscal year of the Borrower and the Subsidiaries; (f) from the First Amendment Date through delivery of the Borrower’s quarterly financial statements for the quarter ending September 30, 2021, monthly, within fifteen (15) days after the end of each month, a certificate of the Borrower certifying to compliance with the liquidity covenant set forth in Section 6.15 of this Agreement; and (g) such additional information, reports or statements (including, without limitation, a duly completed and executed Compliance Certificate) as the Agent may from time to time reasonably request regarding the financial and business affairs of the Borrower and the Subsidiaries.
2.7 Section 6.1 of the Agreement entitled “Indebtedness” is deleted in its entirety and replaced with the following:
“6.1 Indebtedness.  Neither the Borrower nor any Subsidiary will create, incur, assume or suffer to exist any Indebtedness except (a) to the Agent and the Lenders, (b) as set forth on Schedule 6.2 attached hereto, (c) Indebtedness owed by a Subsidiary to the Borrower or to another Subsidiary or by the Borrower to a Subsidiary (which, with respect to Indebtedness not existing on the First Amendment Date owing to the Borrower or a Guarantor from Subsidiaries that are not Guarantors, from the First Amendment Date to the date of delivery of a Compliance Certificate showing compliance with Section 6.13 for the fiscal quarter ending June 30, 2022, shall not exceed $5,000,000 at any one time outstanding), in each case made in the ordinary course of business including, without limitation, in connection with a Permitted Acquisition, (d) Indebtedness incurred for Capital Leases of fixed assets or fixed asset purchases, provided that after taking into effect such Indebtedness, (i) the Borrower is in compliance with Section 6.13 on a pro-forma basis or  (ii) from the First Amendment Date through June 30, 2022, new Indebtedness incurred during such period shall not exceed $2,000,000 at any one time outstanding, (e) Subordinated Indebtedness or Indebtedness under Unsecured Notes with maturity dates after the Revolving 

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Credit Maturity Date including guaranties thereof, provided that after taking into effect such Indebtedness, (i) the Borrower is in compliance with (A) Section 6.13 (except during the Suspension Period), (B) during the Suspension Period, Section 6.14,  (C) through September 30, 2021, Section 6.15, each on a pro-forma basis, (ii) the Borrower delivers to the Agent a certificate signed by the Executive Vice President-Finance or Treasurer of the Borrower certifying (1) the stated maturity date of such Indebtedness, (2) that no Default or Event of Default is then in existence or would be caused by the issuance of such Subordinated Indebtedness or Unsecured Notes and (3) the Borrower is in compliance with (I) Section 6.13 (except during the Suspension Period), (II) during the Suspension Period, Section 6.14 and (III), through September 30, 2021, Section 6.15, in each case both immediately before and after giving pro-forma effect to the incurrence of such Indebtedness, and (iii) from the First Amendment Date through June 30, 2022, the terms and conditions of such Indebtedness have been reasonably approved by the Agent, (f) Indebtedness incurred under Hedge Agreements entered into for the purposes of mitigating interest rate or foreign currency risk, (g) any other Indebtedness which does not cause the then outstanding  amount  of the Indebtedness of the Borrower and its Subsidiaries incurred pursuant to this clause (g), after giving pro-forma effect to such incurrence, to exceed the Threshold Amount, determined as of the date of such incurrence and (h) Indebtedness incurred in connection with a Regulatory Debt Facility; provided that Borrower or any Subsidiary may exchange, refinance or refund any such Indebtedness described in clause (b) or (g) hereof if the aggregate principal amount thereof (or Capital Lease Obligation in the case of a Capital Lease or present value, based on the implicit rate, in the case of a Synthetic Lease) is not increased (other than in connection with the capitalization of interest.”
2.8 Section 6.2 of the Agreement, entitled “Encumbrances” is amended so that subsection (i) is deleted and replaced with the following:
“(i) liens on assets securing Indebtedness permitted by Section 6.1(a), (b), (d), (f), (g) or (h) hereof.”
2.9 Section 6.4 of the Agreement, entitled “Equity Interest Repurchases and Dividends” is deleted in its entirety and replaced with the following: 
“6.4 Equity Interest Repurchases and Dividends.  Neither the Borrower nor any Subsidiary will, directly or indirectly make any repurchase or repurchases of Equity Interests in the Borrower or any Subsidiary or pay any dividend, except for:
        (a) the repurchase by a Subsidiary of Equity Interests owned by the Borrower or another Subsidiary;
        (b) the payment of a dividend by a Subsidiary to the Borrower or to another Subsidiary;

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(c) dividends paid in Equity Interests, provided that no such dividends may be paid during the Suspension Period; and
(d) any other repurchases made or dividends paid, provided that:
(i) promptly following the approval of any stock repurchase program or any cash dividend by the Board of Directors of the Borrower, the Borrower shall have provided written notice to the Agent of such approval with a description of the stock repurchase program or dividend; 
(ii) after giving effect to such repurchases or the payment of such dividends pursuant to clause (d), the Borrower is in compliance with the Leverage Ratio on a pro-forma basis and has at least $10,000,000 of unused availability under the Revolving Credit and no Default or Event of Default is then in existence; and
(iii) no such repurchase shall be made or dividends paid pursuant to this subsection (d) prior to the delivery of a Compliance Certificate demonstrating compliance with Section 6.13 for the fiscal quarter ending  June 30, 2022.”
2.10 Section 6.7 of the Agreement entitled “Consolidation, Merger, Acquisitions, Asset Sales, etc.” is amended so that subsection (c) is deleted and replaced with the following:
(c) Permitted Acquisitions.  Any acquisition by the Borrower or any Subsidiary of all or substantially all of the assets of any other Person or of Equity Interests of any other Person that becomes a Subsidiary as result thereof (in either case, such Person being the “Target”) in a related line of business, or assets constituting all or substantially all of a division or product line of a Target in a related line of business, so long as Borrower delivers to the Agent and the Lenders a certificate in form and content satisfactory to the Agent (“Acquisition Certificate”) indicating that (i) immediately prior to contracting for or consummating such acquisition there does not exist, and there does not occur as a direct or indirect result of the consummation of such acquisition, any Event of Default or Default, (ii) Borrower is in compliance with the Financial Covenant on a pro-forma basis as of the last fiscal quarter of Borrower most recently ended for which financial statements are then available or required to be delivered under Section 5.2 of this Agreement assuming the acquisition had been consummated during such quarter (and giving effect to the increase in the Leverage Ratio permitted following a Permitted Acquisition), and Borrower demonstrates based on pro-forma projections covering the four fiscal quarters of the Borrower following the date of such Acquisition Certificate that Borrower will be in compliance with the Financial Covenant upon and after consummation of such acquisition (giving effect 

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to the increase in the Leverage Ratio permitted following a Permitted Acquisition) and that the Borrower has at least $10,000,000 of unused availability under the Revolving Credit, (iii) such acquisition is being completed on a non-hostile basis without opposition from the board of directors, managers or equity owners of the Target, and (iv) with respect to any assets or Equity Interest of any Person acquired directly or indirectly pursuant to any such acquisition, there are no liens thereon other than Permitted Encumbrances (each such acquisition, including any such acquisition specifically consented to is, a “Permitted Acquisition” and all such acquisitions, the “Permitted Acquisitions”), provided however no such Permitted Acquisition shall be made prior to the delivery of a Compliance Certificate demonstrating compliance with Section 6.13 for the fiscal quarter ending  June 30, 2022.”

2.11 Section 6.13 of the Agreement entitled “Maximum Leverage Ratio” is deleted and replaced with the following:  
“6.13 Maximum Leverage Ratio.  The Borrower will not permit, as of the end of any fiscal quarter set forth below, the Leverage Ratio to exceed the ratio set forth below: 
						
	Quarter Ending:	Ratio:
	March 31, 2018 - December 31, 2019	3.75x
	March 31, 2020 - June 30, 2021	Suspended
	September 30, 2021	6.00x
	December 30, 2021	5.50x
	March 31, 2022	4.50x
	June 30, 2022 and thereafter	3.75x

provided, however, commencing June 30, 2022, if no Default or Event of Default exists, the Borrower may, upon the occurrence of a Material Acquisition, elect to increase the Maximum Leverage Ratio for the Post-Acquisition Fiscal Quarter End Dates (as hereafter defined), provided that the Leverage Ratio may not exceed 4.5 to 1.0, and that the Borrower may not exercise this right more than three (3) times after the Closing Date. “Material Acquisition” means one (1) or more Permitted Acquisitions in a four (4) fiscal quarter period for, in the aggregate, consideration in excess of $40,000,000.  “Post-Acquisition Fiscal Quarter End Dates” means the end of the fiscal quarter in which the Borrower elects to exercise the increased Maximum Leverage Ratio in accordance with this Section 6.13 and the end of the next three (3) fiscal quarters, unless the Borrower elects to exercise the increased Maximum Leverage Ratio within the last 45 days of any fiscal quarter, then “Post-Acquisition Fiscal Quarter Ends” means the end of such fiscal quarter in which the Borrower elects to exercise the increased 

- 15 -

Maximum Leverage Ratio, and the end of the immediately following four (4) fiscal quarters.”
2.12 The following is added to the Agreement new Section 6.14, entitled “Minimum Interest Coverage Ratio”:
“6.14 Minimum Interest Coverage Ratio.  From the First Amendment Date through the end of the Suspension Period, the Borrower will not permit, as of the end of any fiscal quarter set forth below, the ratio of the Consolidated EBITDA of the Borrower and its Subsidiaries to Consolidated Interest Expense calculated on a Rolling Four-Quarter Basis to be less than the amount set forth below.
						
	Quarter Ending:	Ratio:
	June 30, 2020	1.75x
	September 30, 2020	1.75x
	December 31, 2020	1.75x
	March 31, 2021	1.50x
	June 30, 2021	1.75x

2.13 The following is added to the Agreement as new Section 6.15, entitled “Liquidity”:
“6.15 Minimum Liquidity.  The Borrower will not permit Liquidity, as of any date from the First Amendment Date through the date of delivery of a Compliance Certificate for the fiscal quarter ending September 30, 2021 to be less than $180,000,000.”
2.14 Schedules 2.1, 4.11, 6.2 and 6.3 are deleted and replaced by new Schedules 2.1, 4.11, 6.2 and 6.3  attached hereto.
2.15 The form of Compliance Certificate attached to the Agreement as Exhibit C is deleted and replaced with the form of Compliance Certificate attached as Exhibit A to this Amendment.
3. Reaffirmations.
3.1 The Borrower hereby acknowledges and reaffirms the execution and delivery of its Second Amended and Restated General Security Agreement dated as of July 18, 2013 and as supplemented prior to the date hereof (collectively, the “Borrower Security Agreement”), and agrees that the Borrower Security Agreement shall continue in full force and effect and continue to secure the “Obligations” as defined therein, including all indebtedness to the Agent, the Lenders and the Issuing Bank arising under or in connection with the Agreement, as amended hereby, and any renewal, extension or modification thereof, and the documents executed in connection therewith.  The Borrower further acknowledges and reaffirms the authorization of any financing statements filed against the Borrower in connection with the Borrower Security Agreement and acknowledges, reaffirms, ratifies and agrees that the filing of 

- 16 -

such financing statement or financing statements shall continue in full force and effect and continue to perfect the Agent’s security interest in any and all collateral described therein granted to the Agent, for the benefit of the Agent and the Lenders, by the Borrower under the Borrower Security Agreement or otherwise.
3.2 Each of the Guarantors hereby acknowledges and reaffirms the execution and delivery of its respective Guaranty (collectively, the “Guaranty”) and its respective Security Agreement (collectively, the “Guarantor Security Agreement”), and agrees that such Guaranty and the Guarantor Security Agreement shall continue in full force and effect and continue to guarantee or secure, as applicable, all “Obligations” as defined therein, including all indebtedness of the Borrower to the Agent, the Lenders and the Issuing Bank arising under or in connection with the Agreement, as amended hereby, and any renewal, extension or modification thereof, and the documents executed in connection therewith.  Each Guarantor further acknowledges and reaffirms the authorization of any financing statements filed against such Guarantor in connection with the Guarantor Security Agreement and acknowledges, reaffirms, ratifies and agrees that the filing of such financing statement or financing statements shall continue in full force and effect and continue to perfect the Agent’s security interest in any and all collateral described therein granted to the Agent by such Guarantor under the General Security Agreement or otherwise.
4. Other.
4.1 This Amendment may be executed in any number of counterparts, and by the parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same agreement.  This Amendment, to the extent signed and delivered by means of a facsimile machine or email scanned image, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  At the request of any party hereto or to any such agreement or instrument, each other party hereto or thereto shall re-execute original forms thereof and deliver them to all other parties.  No party hereto or to any such agreement or instrument shall raise the use of a facsimile machine or email scanned image to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine or by email as a defense to the formation of a contract and each party forever waives such defense.
4.2 This Amendment shall be governed by and construed under the internal laws of the State of New York, as the same may be in effect from time to time, without regard to principles of conflicts of law.
4.3 Borrower shall take such other and further acts, and deliver to the Agent and the Lenders such other and further documents and agreements, as the Agent shall reasonably request in connection with the transactions contemplated hereby.
4.4 Within five (5) Business Days of demand, Borrower shall pay to Agent, for the ratable benefit of each Lender that provides an executed lender consent to the Agent after 

- 17 -

12:00 pm, New York City time on May 4, 2020, but no later than 12:00 pm, New York City time by May 8, 2020, a consent fee in the amount of 15 basis points of the Commitments for each such Lender (the “Post-Closing Date Consent Fee”, and together with the Closing Date Consent Fee, the “Consent Fee”).

[Signature Page Follows]

Doc #5861411.10

The parties hereto have caused this Amendment to be duly executed as of the date shown at the beginning of this Amendment.

ASTRONICS CORPORATION

By: /s/ David C. Burney
        David C. Burney
        Vice President - Finance 

Consented to, and Agreed, as of the date of this Amendment by the following Guarantors:

ASTRONICS ADVANCED ELECTRONIC
   SYSTEMS CORP.
ASTRONICS CUSTOM CONTROL CONCEPTS INC.
Armstrong Aerospace, Inc.
LUMINESCENT SYSTEMS, INC.
Astronics DME LLC
BALLARD TECHNOLOGY, INC.
MAX-VIZ, INC.
ASTRONICS AEROSAT CORPORATION
PECO, INC.
ASTRONICS TEST SYSTEMS INC.

By: /s/ David C. Burney
        David C. Burney, Treasurer

[Signature Page S-1 to Astronics Amendment No. 1]

HSBC BANK USA, NATIONAL ASSOCIATION
 as Agent

By: /s/  Anna LoPiccolo
Name:  Anna LoPiccolo 
Title:    Director- Head of Loan Agency 

[Signature Page S-2 to Astronics Amendment No. 1]

HSBC BANK USA, NATIONAL ASSOCIATION
 as a Lender, Swingline Lender and Issuing Bank

By:  /s/  Shaun R. Kleinman
Name:  Shaun R. Kleinman
Title:    Senior Vice President

[Signature Page S-3 to Astronics Amendment No. 1]

MANUFACTURERS AND TRADERS TRUST COMPANY, as a Lender

By: /s/ Michael J. Prendergast     
Name: Michael J. Prendergast 
Title:   Vice President
        

[Signature Page S-4 to Astronics Amendment No. 1]

TRUIST BANK, , as a Lender

By: /s/ Anika Kirs
Name: Anika Kirs
Title:   Vice President
[Signature Page S-5 to Astronics Amendment No. 1]Exhibit

VOCERA COMMUNICATIONS, INC.
2012 EQUITY INCENTIVE PLAN
NOTICE OF PERFORMANCE STOCK UNIT AWARD

GRANT NUMBER:___________
Unless otherwise defined herein, the terms defined in the Vocera Communications, Inc. (the “Company”) 2012 Equity Incentive Plan (the “Plan”) shall have the same meanings in this Notice of Performance Stock Unit Award (the “Grant Notice”) and the attached Performance Stock Unit Award Agreement (the “Award Agreement”). 
You (“Participant”) have been granted an award (the “Award”) of Performance Stock Units (“Units”), each of which is a right to receive the value of one (1) Share under the Plan subject to the terms and conditions of the Plan, this Grant Notice, and the Award Agreement, which are incorporated herein by reference.  
	
		
	Participant: 
Address:
	 

	Grant Date:
	 

	Target Number of Units:
	_____________, subject to adjustment as provided by the Award Agreement.

	Maximum Number of Units:
	_____________, which is 200% of the Target Number of Units, subject to adjustment as provided by the Award Agreement.

	Performance Periods (as defined in Section 1.12, as modified by Section 4.3, of the Award Agreement):
	 

	First Performance Period
	The single fiscal year beginning June 1, 2020 and ending May 31, 2021.

	Second Performance Period
	The two fiscal years beginning June 1, 2020 and ending May 31, 2022.

	Third Performance Period
	The three fiscal years beginning June 1, 2020 and ending May 31, 2023.

	Benchmark Index:
	The S&P 600 Health Care Equipment and Services Index 

	Performance Multiplier:
	As determined pursuant to Section 2.1 of the Award Agreement.

	Earned Units: 
	The number of Units that may vest is based on the achievement of Company TSR Percentile Rank

	First Performance Period Earned Units (as set forth in Section 2.2(a) of the Award Agreement)
	The number of First Performance Period Earned Units, if any (not to exceed one-third of the Target Number of Units), shall equal the product of (a) one-third of the Target Number of Units and (b) the Performance Multiplier determined for the First Performance Period.

	Second Performance Period Earned Units (as set forth in Section 2.2(b) of the Award Agreement)
	The number of Second Performance Period Earned Units, if any (not to exceed one-third of the Target Number of Units), shall equal the product of (a) one-third of the Target Number of Units and (b) the Performance Multiplier determined for the Second Performance Period.

	Third Performance Period Earned Units (as set forth in Section 2.2(c) of the Award Agreement)
	The number of Third Performance Period Earned Units, if any (not to exceed the Maximum Number of Units when combined with the First Performance Period Earned Units and the Second Performance Period Earned Units), shall equal the excess, if any, of (a) the product of (i) the Target Number of Units and (ii) the Performance Multiplier determined for the Third Performance Period, reduced by (b) the sum of the First Performance Period Earned Units and the Second Performance Period Earned Units.

	Vesting:
	As provided in Section 4 of the Award Agreement.

	Settlement:
	As provided in Section 5 of the Award Agreement. 

	Expiration Date:
	This Award expires on the earlier to occur of: (a) the date on which this Award is settled in full, (b) the date following the conclusion of the Third Performance Period, if it has been determined that the performance metrics have not been achieved and (c) the fourth (4th) anniversary of the Date of Grant.  This Award expires earlier if Participant’s Service terminates earlier, as described in the Agreement.

You understand that your employment or consulting relationship or Service with the Company or Subsidiary is for an unspecified duration, can be terminated at any time (i.e., is “at-will”), except where otherwise prohibited by applicable law, and that nothing in this Grant Notice, the Award Agreement or the Plan changes the at-will nature of that relationship. You acknowledge that the vesting of the Units pursuant to this Grant Notice is earned only by continuing Service as an Employee, Director or Consultant of the Company.  You agree and acknowledge that the vesting applicable to the Units may change prospectively in the event that your Service status changes between full and part time status, or in the event of certain leaves of absence, in accordance with Company policies relating to work schedules and vesting of awards.  By accepting this Award, you consent to electronic delivery as set forth in the Award Agreement. 
You have read both the Award Agreement and the Plan.  By accepting this Award Agreement, you and the Company agree that this Award is granted under and governed by the terms and conditions of the Plan, the Grant Notice, and the Award Agreement.  Without limiting the generality of the foregoing, by accepting this Award Agreement, you consent to the electronic delivery, if applicable, as set forth in the Award Agreement.

	
					
	PARTICIPANT
	 
	VOCERA COMMUNICATIONS, INC.

	Signature:
	 
	 
	By:
	 

	Print Name:
	 
	 
	Its:
	 

	Date:
	 
	 
	Date:
	 

    
        

VOCERA COMMUNICATIONS, INC.
PERFORMANCE STOCK UNIT AWARD AGREEMENT

Vocera Communications, Inc. (the “Company”) has granted to the Participant named in the Notice of Performance Stock Unit Award (the “Grant Notice”) to which this Performance Stock Unit Award Agreement (this “Award Agreement”) is attached an Award consisting of Performance Stock Units (each a “Unit”) subject to the terms and conditions set forth in the Grant Notice and this Award Agreement.  The Award has been granted pursuant to and shall in all respects be subject to the terms and conditions of the Vocera Communications, Inc. 2012 Equity Incentive Plan (the “Plan”) in effect on the Grant Date, the provisions of which are incorporated herein by reference.  By signing the Grant Notice, the Participant: (a) acknowledges receipt of and represents that the Participant has read and is familiar with the Grant Notice, this Award Agreement and the Plan, (b) accepts the Award subject to all of the terms and conditions of the Grant Notice, this Award Agreement and the Plan and (c) agrees to accept as binding, conclusive and final all decisions or interpretations of the Committee upon any questions arising under the Grant Notice, this Award Agreement or the Plan.
Unless otherwise defined herein or in the Grant Notice, capitalized terms shall have the meanings assigned by the Plan.
		
	1.
	Definitions.

		
	1.1
	“Average Closing Share Price” means the average of the daily closing prices per Share as reported on the New York Stock Exchange for the applicable thirty (30) trading days. The Average Closing Share Price will be adjusted in each case to reflect an assumed reinvestment, as of the of applicable ex-dividend date, of all cash dividends and other cash distributions (excluding cash distributions resulting from share repurchases or redemptions by the Company) paid to stockholders, as applicable, during the thirty (30) trading days ending immediately prior to the Grant Date or during the applicable Performance Period.

		
	1.2
	“Average Closing Index Component Value” means, for each component company of the Benchmark Index, the average of the daily closing prices per share of common stock of the component company for the applicable thirty (30) trading days.

		
	1.3
	“Benchmark Index Component Total Return” means, for each component company of the Benchmark Index, the percentage increase or decrease (rounded to four decimal places) in (a) the Average Closing Index Component Value for the thirty (30) trading days ending with the last trading day of the applicable Performance Period over (b) the Average Closing Index Component Value for the thirty (30) trading days ending immediately prior to the Grant Date.  A company will not be considered a component company if the company is no longer included in the component index on the last day of a Performance Period by reason of a corporate transaction during an applicable Performance Period.  

		
	1.4
	“Benchmark Index Percentiles” mean, for the applicable Performance Period, the percentile distribution of the Benchmark Index Component Total Returns of the component companies of the Benchmark Index.

		
	1.5
	“Corporate Transaction” shall have the same meaning as set forth in the Plan, with the closing date thereof referred to herein as the “Closing Date”. 

		
	1.6
	“Corporate Transaction Performance Period” means, in the event of the closing of a Corporate Transaction before the end of the Third Performance Period, a special Performance Period beginning on the Grant Date and ending on the last trading day immediately preceding the Closing Date.

		
	1.7
	“Corporate Transaction Price” means the price per Share to be paid to the holder in accordance with the definitive agreement governing the transaction constituting the Corporate Transaction (or, in the absence of such agreement, the closing price per Share as reported on the New York Stock Exchange for the last trading day of the Corporate Transaction Performance Period), adjusted to reflect an assumed reinvestment, as of the applicable ex-dividend date, of all cash dividends and other cash 

distributions (excluding cash distributions resulting from share repurchases or redemptions by the Company) paid to stockholders during the Corporate Transaction Performance Period.
		
	1.8
	“Company TSR” means the total stockholder return of the Company over the applicable Performance Period, expressed as a percentage increase or decrease (rounded to four decimal places) and computed in accordance with the following formula: (A - B)/B, where:

“A” is the Average Closing Share Price ending with the last trading day of the applicable Performance Period; and
“B” is the Average Closing Share Price ending immediately prior to the Grant Date.
		
	1.9
	“Company TSR Percentile Rank” means, for the applicable Performance Period, the percentile rank of Company TSR within the range of the Benchmark Index Percentiles.

		
	1.10
	“Earned Unit” means a Unit eligible to vest as based on the achievement of Company TSR Percentile Rank within the Performance Period and the Participant’s continued Service through the Performance Period End Date pursuant to Section 2 and Section 4.

		
	1.11
	“Performance Multiplier” means, for each Performance Period, a percentage (rounded to four decimal places) determined in accordance with Section 2.1 or, in the event of the closing of a Corporate Transaction before the end of the Third Performance Period, in accordance with Section 4.3.

		
	1.12
	“Performance Period” means, as applicable, the First Performance Period, Second Performance Period or Third Performance Period, or, in the event of the closing of a Corporate Transaction before the end of the Third Performance Period, a Corporate Transaction Performance Period (the final day of such period, as applicable, the “Performance Period End Date”). 

		
	2.
	Earned Units. 

		
	2.1
	Determination of Performance Multiplier. The Performance Multiplier (rounded to four decimal places) for each Performance Period will be determined on the basis of the Company TSR Percentile Rank achieved for such Performance Period (and without regard to the absolute Company TSR) as follows, and will be subject to linear interpolation between Company TSR Percentile Ranks:

	
		
	Company TSR Percentile Rank
	Performance Multiplier

	Less than 25th percentile
	Zero

	25th percentile
	50%

	50th percentile 
	100%

	75th percentile or greater
	200%

For example, if the TSR Percentile Rank is the 60th percentile, the Performance Multiplier would be 140%.
Notwithstanding the foregoing, in the event of the closing of a Corporate Transaction before the end of the Third Performance Period, the Performance Multiplier will be determined in accordance with Section 2.2(d).
2.2Determination of Earned Units. The number of Earned Units for each Performance Period will be determined as follows:
a.First Performance Period. The number of Earned Units for the First Performance Period, if any, will be equal to the product of (i) one-third of the Target Units (rounded to the nearest whole number) and (ii) the Performance Multiplier determined for the First Performance Period, provided that the maximum number of Earned Units for the First Performance Period may not exceed one-third of the Target Units.
b.Second Performance Period. The number of Earned Units for the Second Performance Period, if any, will be equal to the product of (i) one-third of the Target Units (rounded to the nearest whole number) and (ii) the Performance Multiplier determined for the Second Performance Period, 

provided that the maximum number of Earned Units for the Second Performance Period may not exceed one-third of the Target Units.
c.Third Performance Period. The number of Earned Units for the Third Performance Period, if any, will be equal to (i) the product of (A) the Target Units and (B) the Performance Multiplier determined for the Third Performance Period, reduced by (ii) the sum, if any, of (A) the number Earned Units for the First Performance Period and (B) the number of Earned Units for the Second Performance Period.
d.Corporate Transaction Performance Period. In the event of the closing of a Corporate Transaction before the end of the Third Performance Period, the number of Earned Units determined for the Corporate Transaction Performance Period will be equal to (i) the product of (A) the Target Units and (B) the Corporate Transaction Performance Multiplier, reduced by (ii) the sum, if any, of (A) the number Earned Units for the First Performance Period and (B) the number of Earned Units for the Second Performance Period.  “Corporate Transaction Multiplier” means the Performance Multiplier determined in accordance with Section 2.1, except that, in determining the Company TSR Percentile Rank for the Corporate Transaction Performance Period, the Company TSR for the Corporate Transaction Performance Period will be determined by substituting the Corporate Transaction Price for the Average Closing Share Price on the last trading day of the applicable Performance Period.
		
	3.
	Committee Certification of Earned Units.

As soon as practicable following completion of each Performance Period, but no later than forty-five (45) days following such completion, except as provided in Section 4.3, the Committee shall determine and certify in writing the Company TSR Percentile Rank attained for such Performance Period, the resulting Performance Multiplier and the number of Units which have become Earned Units for such Performance Period (the date of such certification being the “Certification Date”); provided, however, that the Committee shall retain discretion to reduce, but not increase the number of Units that would otherwise vest as a result of the Company’s performance for the Performance Period. 
		
	4.
	Vesting of Earned Units.

		
	4.1
	Normal Vesting.  Earned Units with respect to a Performance Period (as determined in Section 2.2) shall vest on the applicable Certification Date subject to Participant’s continued Service through the Performance Period End Date, except as otherwise set forth in this Section 4.

		
	4.2
	Forfeiture upon Termination of Employment.  If the Participant’s Service terminates for any reason prior to the applicable Performance Period End Date, all Units subject to the Award which have not become Earned Units as of the time of such termination of Service shall be forfeited to the Company and all rights of Participant to such Units shall immediately terminate.  Notwithstanding the foregoing, a Participant shall be entitled to credit or acceleration of service based vesting of the Units if, and to the extent, provided in any severance agreement or employment agreement with the Company, provided, however, that provisions of this Award Agreement shall govern with respect to the determination of Earned Units, and a Participant shall not vest in any Units that are not Earned Units.

		
	4.3
	Corporate Transaction.  In the event of a Corporate Transaction, the vesting of Earned Units shall be determined as follows:

		
	a.
	The number of Earned Units for each Performance Period that has ended prior to the last day of the Corporate Transaction Performance Period (all such periods, the “Completed Performance Periods”) shall be certified by the Committee no later than the Closing Date and shall be settled on the earlier of (i) in accordance with Section 5 and (ii) the Closing Date.

		
	b.
	The number of Earned Units for the Corporate Transaction Performance Period as determined pursuant to Section 2.2(d) will be multiplied by a fraction, the numerator of which equals the number of days contained in the Corporate Transaction Performance Period and the denominator of which equals the number of days contained in the Third Performance Period (the “Accelerated Units”).  The Accelerated Units shall be settled within thirty (30) days following the Closing Date.

		
	c.
	That portion of the Earned Units determined in accordance with Section 4.3(b)in excess of the number of Accelerated Units shall be converted to time based vesting (such excess portion, a “Time-Vesting Unit Award”) and shall become vested in equal installments on the remaining original Performance Period End Dates (or in full, if only one such Performance Period End Date remains), provided that the Participant’s Service has not terminated prior to the applicable Performance Period End Date(s).  The Units subject to the Time-Vesting Unit Award which become vested pursuant to this section shall be settled in accordance with Section 6.  

		
	d.
	Notwithstanding anything to the contrary in this Award Agreement or in the Plan, in the event of a Corporate Transaction in which the Units are not assumed or replaced by the successor entity, all of the Earned Units (as determined in accordance with Section 2.2(d) and this Section 4.3) shall become vested immediately prior to the last day of the Corporate Transaction Performance Period and shall be settled within thirty (30) days following the Closing Date.

		
	e.
	Notwithstanding anything to the contrary in this Award Agreement, in the event of a Corporate Transaction, if a Participant’s severance agreement, employment agreement or other similar agreement with the Company provides for additional vesting or accelerated vesting in the event of a termination of Service in connection with a Corporate Transaction, this Award Agreement shall take account of such agreement, provided, however, that provisions of this Award Agreement shall govern with respect to the determination of Earned Units, and a Participant shall not vest in any Units that are not Earned Units.

		
	5.
	Settlement. 

Except as otherwise provided by Section 4, for each vested Earned Unit, settlement shall be made within fifteen (15) days following the applicable Certification Date, but in any event no later than the 15th day of the third calendar month following the end of the calendar year in which the Performance Period End Date occurs. 
		
	6.
	No Stockholder Rights.

Unless and until such time as Shares are issued in settlement of Earned Units, Participant shall have no ownership of the Shares allocated to the Units and shall have no right to dividends or to vote such shares.  
		
	7.
	Dividend Equivalents.

Dividends, if any (whether in cash or Shares), shall not be credited to Participant.  

		
	8.
	No Transfer.

Prior to the issuance of Shares on the applicable settlement date, neither this Award nor any Units subject to this Award nor any interest therein shall be sold, assigned, transferred, pledged, hypothecated, or otherwise disposed of.  
		
	9.
	Section 280G; Best After-Tax Result.  

In the event that any payment or benefit received or to be received by Participant pursuant to this Award Agreement or otherwise (“Payments”) would (i) constitute a “parachute payment” within the meaning of Section 280G of the Code and (ii) but for this subsection (a), be subject to the excise tax imposed by Section 4999 of the Code, any successor provisions, or any comparable federal, state, local or foreign excise tax (“Excise Tax”), then, subject to the provisions of Section 9.2 hereof, such Payments shall be either (A) provided in full pursuant to the terms of this Award Agreement or any other applicable agreement, or (B) provided as to such lesser extent which would result in no portion of such Payments being subject to the Excise Tax, whichever of the foregoing amounts, taking into account the applicable federal, state, local and foreign income, employment and other taxes and the Excise Tax (including, without limitation, any interest or penalties on such taxes), results in the receipt by Participant, on an after-tax basis, of the greatest amount of payments and benefits provided for hereunder or otherwise, notwithstanding that all or some portion of such Payments may be subject to the Excise Tax.

10.Compliance with Section 409A. 
For purposes of this Award Agreement, a termination of employment will be determined consistent with the rules relating to a “separation from service” as defined in Section 409A of the Code and the regulations thereunder (“Section 409A”).  Notwithstanding anything else provided herein, to the extent any payments provided under this Award Agreement in connection with Participant’s termination of employment constitute deferred compensation subject to Section 409A, and Participant is deemed at the time of such termination of employment to be a “specified employee” under Section 409A, then such payment shall not be made or commence until the earlier of (i) the expiration of the six-month period measured from Participant’s separation from service from the Company or (ii) the date of Participant’s death following such a separation from service; provided, however, that such deferral shall only be effected to the extent required to avoid adverse tax treatment to Participant including, without limitation, the additional tax for which Participant would otherwise be liable under Section 409A(a)(1)(B) in the absence of such a deferral.  To the extent any payment under this Agreement may be classified as a “short-term deferral” within the meaning of Section 409A, such payment shall be deemed a short-term deferral, even if it may also qualify for an exemption from Section 409A under another provision of Section 409A.  Payments pursuant to this section are intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.
		
	11.
	Withholding Taxes and Stock Withholding. 

		
	11.1
	In General.  Regardless of any action the Company or Participant’s actual employer (the “Employer”) takes with respect to any or all income tax, social insurance, payroll tax, payment on account or other tax-related withholding (“Tax-Related Items”), Participant acknowledges that the ultimate liability for all Tax-Related Items legally due by Participant is and remains Participant’s responsibility and that the Company and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection with any aspect of the award, including the settlement of the Units, the subsequent sale of Shares acquired pursuant to such settlement and the receipt of any dividends; and (2) do not commit to structure the terms of the award or any aspect of the Units to reduce or eliminate Participant’s liability for Tax-Related Items.  Participant should consult his or her personal tax advisor for more information on the actual and potential tax consequences of these Units.

		
	11.2
	Withholding.  Prior to the settlement of Participant’s Units, Participant shall pay or make adequate arrangements satisfactory to the Company and/or the Employer to satisfy all withholding and payment on account obligations of the Company and/or the Employer.  In this regard, Participant authorizes the Company and/or the Employer to withhold all applicable Tax-Related Items legally payable by Participant from Participant’s wages or other cash compensation paid to Participant by the Company and/or the Employer.  With the Committee’s consent, these arrangements may also include, if permissible under local law, (a) withholding Shares that otherwise would be issued to Participant when Participant’s Units are settled, provided that the Company only withholds the amount of Shares necessary to satisfy the minimum statutory withholding amount, (b) having the Company withhold taxes from the proceeds of the sale of the Shares, either through a voluntary sale or through a mandatory sale arranged by the Company (on Participant’s behalf pursuant to this authorization), or (c) any other arrangement approved by the Company.  The Fair Market Value of these Shares, determined as of the effective date when taxes otherwise would have been withheld in cash, will be applied as a credit against the withholding taxes. Finally, Participant shall pay to the Company or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold as a result of Participant’s participation in the Plan or Participant’s purchase of Shares that cannot be satisfied by the means previously described.  The Company may refuse to deliver the Shares if Participant fails to comply with Participant’s obligations in connection with the Tax-Related Items as described in this section.

12.Miscellaneous Provisions.
		
	12.1
	Acknowledgment.  The Company and Participant agree that the Units are granted under and governed by the Grant Notice, this Award Agreement and the provisions of the Plan.  Participant: (i) acknowledges receipt of a copy of the Plan, (ii) represents that Participant has carefully read and is 

familiar with its provisions, and (iii) hereby accepts the Award subject to all of the terms and conditions set forth herein and those set forth in the Plan and the Grant Notice.  
		
	12.2
	Entire Agreement; Enforcement of Rights.  This Award Agreement, the Plan and the Grant Notice constitute the entire agreement and understanding of the parties relating to the subject matter herein and supersede all prior discussions between them. Any prior agreements, commitments or negotiations concerning the issuance of Shares hereunder are superseded. No modification of or amendment to this Award Agreement, nor any waiver of any rights under this Award Agreement, shall be effective unless in writing and signed by the parties to this Award Agreement.  The failure by either party to enforce any rights under this Award Agreement shall not be construed as a waiver of any rights of such party.

		
	12.3
	Compliance with Laws and Regulations.  The issuance of Shares will be subject to and conditioned upon compliance by the Company and Participant with all applicable state, federal and foreign laws and regulations and with all applicable requirements of any stock exchange or automated quotation system on which the Shares may be listed or quoted at the time of such issuance or transfer.

		
	12.4
	Governing Law; Severability.  If one or more provisions of this Award Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded from this Award Agreement, (ii) the balance of this Award Agreement shall be interpreted as if such provision were so excluded and (iii) the balance of this Award Agreement shall be enforceable in accordance with its terms.  This Award Agreement and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Delaware, without giving effect to principles of conflicts of law. 

		
	12.5
	No Rights as Employee, Director or Consultant.  Nothing in this Award Agreement shall affect in any manner whatsoever the right or power of the Company, or a Parent or Subsidiary of the Company, to terminate Participant’s Service, for any reason, with or without cause. 

		
	12.6
	Consent to Electronic Delivery of All Plan Documents and Disclosures.  By acceptance of this Award, Participant consents to the electronic delivery of the Notice, this Award Agreement, the Plan, account statements, and Plan prospectuses required by the Securities and Exchange Commission, U.S. financial reports of the Company, and all other documents that the Company is required to deliver to its security holders (including, without limitation, annual reports and proxy statements) or other communications or information related to the Award. Electronic delivery may include the delivery of a link to a Company intranet or the internet site of a third party involved in administering the Plan, the delivery of the document via e-mail or such other delivery determined at the Company’s discretion. Participant acknowledges that Participant may receive from the Company a paper copy of any documents delivered electronically at no cost if Participant contacts the Company by telephone, through a postal service or electronic mail at stock@vocera.com.  Participant further acknowledges that Participant will be provided with a paper copy of any documents delivered electronically if electronic delivery fails; similarly, Participant understands that Participant must provide on request to the Company or any designated third party a paper copy of any documents delivered electronically if electronic delivery fails. Also, Participant understands that Participant’s consent may be revoked or changed, including any change in the electronic mail address to which documents are delivered (if Participant has provided an electronic mail address), at any time by notifying the Company of such revised or revoked consent by telephone, postal service or electronic mail at stock@vocera.com. Finally, Participant understands that Participant is not required to consent to electronic delivery.

		
	12.7
	Award Subject to Company Clawback or Recoupment.  The Units shall be subject to clawback or recoupment pursuant to any compensation clawback or recoupment policy adopted by the Board or required by law during the term of Participant’s employment or other Service that is applicable to executive officers, Employees, Directors or other service providers of the Company, and in addition to any other remedies available under such policy and applicable law may require the cancellation of Participant’s Units (whether vested or unvested) and the recoupment of any gains realized with respect to Participant’s Units.

BY ACCEPTING THIS AWARD, PARTICIPANT AGREES TO ALL OF THE TERMS AND CONDITIONS DESCRIBED ABOVE, IN THE GRANT NOTICE AND IN THE PLAN.

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