Document:

Exhibit

AMENDMENT NO. 1 TO 
SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT
This AMENDMENT NO. 1 TO SEVENTH AMENDED AND RESTATED CREDIT AGREEMENT (this "Amendment") is dated as of June 25, 2018, and is entered into by and among PARK-OHIO INDUSTRIES, INC. ("Company"), RB&W CORPORATION OF CANADA ("Canadian Borrower"), the EUROPEAN BORROWERS party to the Credit Agreement, the other Loan Parties party to the Credit Agreement, the Lenders party hereto, JPMORGAN CHASE BANK, N.A., as administrative agent for the Lenders (in such capacity, the "Administrative Agent"), JPMORGAN CHASE BANK, N.A., Toronto Branch, as Canadian Agent, and J.P. MORGAN EUROPE LIMITED, as European Agent.
W I T N E S S E T H:
WHEREAS, the Borrowers, the other Loan Parties, the lenders from time to time party thereto (the "Lenders") and the Agents are parties to that certain Seventh Amended and Restated Credit Agreement dated as of April 17, 2017 (as amended, modified and supplemented from time to time, the "Credit Agreement"; capitalized terms not otherwise defined herein have the definitions provided therefor in the Credit Agreement); and
WHEREAS, the Borrowers have requested, and the Agents and each Lender party hereto has agreed, to amend the Credit Agreement to, among others, increase the Domestic Revolving Commitment from $350,000,000 to $375,000,000, which increase shall not constitute an exercise of the increase to Revolving Commitments contemplated by Section 2.09 of the Credit Agreement, increase the Canadian Revolving Subcommitment from $35,000,000 to $40,000,000 and increase the European Revolving Subcommitment from $25,000,000 to $30,000,000, in each case subject to the terms and conditions set forth herein;
NOW THEREFORE, in consideration of the mutual conditions and agreements set forth in the Credit Agreement and this Amendment, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
1.Amendment.  In reliance upon the representations and warranties of the Loan Parties set forth in Section 3 below and subject to the conditions to effectiveness set forth in Section 2 below, the Credit Agreement is hereby amended as follows:
(a)    Section 1.01 of the Credit Agreement is hereby amended to insert the following new defined term in its appropriate alphabetical order as follows:
"First Amendment" means that certain Amendment No. 1 to Seventh Amended and Restated Credit Agreement, dated as of the First Amendment Effective Date, by and among Borrowers, the other Loan Parties party thereto, Agents and the Lenders party thereto.
"First Amendment Effective Date" means June 25, 2018.
"First Amendment Domestic Revolving Commitment Specified Amount" means the $25,000,000 aggregate increase to the Domestic Revolving Commitment contemplated by the First Amendment, which shall be deemed to be the last amounts outstanding for purposes of calculating the commitment fee under Section 2.12(a).  As of the First Amendment Effective Date, and unless otherwise agreed in writing, 100% of the First Amendment Domestic Revolving Commitment Specified Amount shall be held by JPMorgan Chase Bank, N.A.
(b)    The following defined terms set forth in Section 1.01 of the Credit Agreement are hereby amended and restated in their entirety as follows:
"Canadian Inventory Sublimit" means an amount equal to the Dollar Equivalent of $17,000,000.
"European Inventory Sublimit" means an amount equal to the Dollar Equivalent of $18,000,000.
(c)    The definition of "Canadian Revolving Subcommitment" set forth in Section 1.01 of the Credit Agreement is hereby amended to amend and restate the second to last sentence thereof in its entirety as follows:
The aggregate amount of the Canadian Revolving Lenders' Canadian Revolving Subcommitment as of the First Amendment Effective Date is the Dollar Equivalent of $40,000,000.
(d)    The definition of "Canadian Borrowing Base" set forth in Section 1.01 of the Credit Agreement is hereby amended to amend and restate clause (c) thereof in its entirety as follows:
(c) 100% of such Canadian Loan Parties' cash maintained in an account at Canadian Agent or such other depository institution reasonably satisfactory to Administrative Agent, and in each case subject to a deposit account control agreement (or other arrangement) reasonably satisfactory to Administrative Agent, minus
(e)    The definition of "Domestic Borrowing Base" set forth in Section 1.01 of the Credit Agreement is hereby amended to replace the reference to "235,000,000" set forth in clause (b)(ii) thereof with a reference to "$250,000,000".
(f)    The definition of "Domestic Revolving Commitment" set forth in Section 1.01 of the Credit Agreement is hereby amended to amend and restate the last sentence thereof in its entirety as follows:
The aggregate amount of the Domestic Revolving Lenders' Domestic Revolving Commitments as of the First Amendment Effective Date is $375,000,000. It is agreed and understood that the increase to the Domestic Revolving Commitments contemplated by the First Amendment shall not constitute an exercise of the increase to Revolving Commitments contemplated by Section 2.09.
(g)    The definition of "European Revolving Subcommitment" set forth in Section 1.01 of the Credit Agreement is hereby amended to amend and restate the second to last sentence thereof in its entirety as follows:
The aggregate amount of the European Revolving Lenders' European Revolving Subcommitment as of the First Amendment Effective Date is the Dollar Equivalent of $30,000,000.
(h)    Section 2.09(e) of the Credit Agreement is hereby amended to replace the reference to "$450,000,000" set forth in the first sentence thereof with a reference to "475,000,000".
(i)    Section 2.12(a) of the Credit Agreement is hereby amended to amend and restate the first sentence thereof in its entirety as follows:
(a)    The Company agrees to pay to the Administrative Agent for the account of each Revolving Lender a commitment fee, which shall accrue at the Applicable Fee Rate on the average daily amount of the Available Revolving Commitment of such Revolving Lender during the period from and including the Effective Date to but excluding the date on which the Revolving Lenders' Revolving Commitments terminate; provided, that notwithstanding the foregoing or anything contained in the Credit Agreement or any other Loan Document to the contrary, no commitment fee shall accrue or be due and payable to the Lender holding the First Amendment Domestic Revolving Commitment Specified Amount.
(j)    Section 3.27 of the Credit Agreement is hereby amended to amend and restate that section in its entirety as follows:
Section 3.27    Centre of Main Interests.
For the purposes of the Regulation (EU) 2015/848 of 20 May 2015 on insolvency proceedings (recast), the centre of main interests (as that term is used in Article 3(1) therein) of each European Loan Party is situated in its jurisdiction of incorporation and it has no "establishment" (as that term is used in Article 2(10) therein) in any other jurisdiction.
(k)    Section 5.01(g) of the Credit Agreement is hereby amended to replace the reference to "$43,750,000" set forth in clause (A) of the proviso thereof with a reference to "$46,875,000".
(l)    Section 5.01(m) of the Credit Agreement is hereby amended to replace the reference to "$35,000,000" set forth in clause (A) of the proviso thereof with a reference to "$37,500,000".
(m)    Section 5.06 of the Credit Agreement is hereby amended to replace the reference to "$43,750,000" set forth in clause (A) of the proviso of the second sentence thereof with a reference to "$46,875,000".
(n)    Section 5.20 of the Credit Agreement is hereby amended to amend and restate that section in its entirety as follows:
Section 5.20    Centre of Main Interests.
Each European Loan Party shall maintain its centre of main interests in its jurisdiction of incorporation for the purposes of the Regulation (EU) 2015/848 of 20 May 2015 on insolvency proceedings (recast).
(o)    Article V of the Credit Agreement is hereby amended to insert a new Section 5.21 at the end thereof as follows:
Section 5.21    People with Significant Control Regime.
Each Loan Party shall, and shall ensure that each of its Subsidiaries shall, (a) within the relevant timeframe, comply with any notice it receives pursuant to Part 21A of the Companies Act 2006 from any company incorporated in the United Kingdom whose shares are the subject of a Lien granted in favour of the European Agent; and (b) promptly provide the European Agent with a copy of that notice.
(p)    Section 6.01(c)(viii) of the Credit Agreement is hereby amended to replace the reference to "$35,000,000" set forth in clause (A)(1) thereof with a reference to "$37,500,000".
(q)    Section 6.01(d)(viii) of the Credit Agreement is hereby amended to replace the reference to "$35,000,000" set forth in clause (iii)(A)(1)  of the proviso thereof with a reference to "$37,500,000".
(r)    Section 6.04(d) of the Credit Agreement is hereby amended to replace the reference to "$35,000,000" set forth in clause (i)(A) thereof with a reference to "$37,500,000".
(s)    Section 6.04(j) of the Credit Agreement is hereby amended to replace the reference to "$35,000,000" set forth in clause (i)(A) thereof with a reference to "$37,500,000".
(t)    Section 6.04(k) of the Credit Agreement is hereby amended to replace the reference to "$35,000,000" set forth in clause (A) of the proviso thereof with a reference to "$37,500,000".
(u)    Section 6.08(a) of the Credit Agreement is hereby amended to (i) replace the reference to "$35,000,000" set forth in clause (iii)(B)(x)(I)(1) thereof with a reference to "$37,500,000", (ii) replace the reference to "$43,750,000" set forth in clause (iii)(B)(x)(II)(1) thereof with a reference to "$46,875,000" and (iii) replace the reference to "$35,000,000" set forth in clause (iii)(C)(1) thereof with a reference to "$37,500,000".
(v)    Section 6.08(b)(vi) of the Credit Agreement is hereby amended to replace the reference to "$35,000,000" set forth in clause (2)(A) thereof with a reference to "$37,500,000".
(w)    Section 6.08(c) of the Credit Agreement is hereby amended to (i) replace the reference to "$35,000,000" set forth in clause (B)(2)(I) of the proviso thereof with a reference to "$37,500,000", and (ii) replace the reference to "$35,000,000" set forth in clause (C)(ii)(y) thereof with a reference to "$37,500,000".
(x)    Section 6.12 of the Credit Agreement is hereby amended to replace the reference to "$35,000,000" set forth in clause (2)(A) of the proviso thereof with a reference to "$37,500,000".
(y)    Section 6.13 of the Credit Agreement is hereby amended to replace each reference to "$43,750,000" set forth in clause (A) thereof and in clause (A) of the proviso thereof with a reference to "$46,875,000".
(z)    Section 12.02 of the Credit Agreement is hereby amended to replace the reference to "$43,750,000" set forth in clause (A) thereof with a reference to "$46,875,000".
(aa)    The Commitment Schedule attached to the Credit Agreement is hereby amended and restated in its entirety with the Commitment Schedule attached hereto. 
2.    Conditions to Effectiveness.  The effectiveness of this Amendment is subject to the following conditions precedent, each to be in form and substance satisfactory to Administrative Agent: 
(a)    Administrative Agent shall have received a fully executed copy of this Amendment executed by the Loan Parties, each Agent, Required Lenders and each Lender increasing its respective Canadian Revolving Subcommitment, Domestic Revolving Commitment and/or European Revolving Subcommitment, as applicable; 
(b)    Administrative Agent shall have received fully executed copies of each agreement, certificate and other delivery items listed on the Closing Checklist attached hereto as Exhibit A; and 
(c)    no Default or Event of Default shall have occurred and be continuing.
3.    Representations and Warranties.  To induce Agents and Lenders to enter into this Amendment, each of the Loan Parties represent and warrant to Agents and Lenders that: 
(a)    the increases to the Canadian Revolving Subcommitment, Domestic Revolving Commitment and/or European Revolving Subcommitment contemplated under this Amendment are permitted to be made under the 2017 Indenture;
(b)    the execution, delivery and performance of this Amendment has been duly authorized by all requisite corporate or limited liability company action, respectively, on the part of such Loan Party and this Amendment has been duly executed and delivered by such Loan Party; 
(c)    each of the representations and warranties set forth in Article III of the Credit Agreement, are true and correct in all material respects as of the date hereof (except to the extent they relate to an earlier date, in which case they shall have been true and correct in all material respects as of such earlier date); and
(d)    no Default or Event of Default has occurred and is continuing.
4.    Acknowledgment of Loan Guarantor.  Each Loan Guarantor hereby acknowledges that Borrowers, Agents and Lenders have modified the Credit Agreement by this Amendment, and such Loan Guarantor acknowledges that Agents and Lenders would not modify the Credit Agreement in the absence of the agreements of such Loan Guarantor contained herein.  Each Loan Guarantor hereby approves of and consents to the Amendment, agrees that its obligations under the Loan Guaranty and the other Loan Documents to which it is a party shall not be diminished as a result of the execution of the Amendment, and confirms that the Loan Guaranty and all other Loan Documents to which it is a party are in full force and effect.  
5.    Reaffirmation; Loan Document.  Each Loan Party hereby ratifies, affirms, acknowledges and agrees that each Collateral Document represents the valid, enforceable and collectible obligations of such Loan Party, and further acknowledges that there are no existing claims, defenses, personal or otherwise, or rights of setoff whatsoever with respect to the Credit Agreement or any other Loan Document.  Each Loan Party hereby acknowledges and agrees that, except as expressly set forth herein, (i) this Amendment in no way acts as a release, termination, discharge or relinquishment of any Lien or security interest of any Agent on any Collateral, and (ii) all Liens and other security interests securing payment of the Secured Obligations are hereby ratified, confirmed and continued by each Loan Party in all respects.  This Amendment constitutes a Loan Document.
6.    Severability.  Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.
7.    References.  Any reference to the Credit Agreement contained in any document, instrument or Credit Agreement executed in connection with the Credit Agreement shall be deemed to be a reference to the Credit Agreement as modified by this Amendment.
8.    Counterparts.  This Amendment may be executed in one or more counterparts, each of which shall constitute an original, but all of which taken together shall be one and the same instrument.  Delivery by telecopy or electronic portable document format (i.e., "pdf") transmission of executed signature pages hereof from one party hereto to another party hereto shall be deemed to constitute due execution and delivery by such party.
9.    Ratification.  The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions of the Credit Agreement and shall not be deemed to be a consent to the modification or waiver of any other term or condition of the Credit Agreement.  Except as expressly modified and superseded by this Amendment, the terms and provisions of the Credit Agreement are ratified and confirmed and shall continue in full force and effect.
10.    Governing Law.  This Amendment shall be a contract made under and governed by the laws of the state of Ohio, without regard to conflict of laws principles that would require the application of laws other than those of the state of Ohio. Whenever possible each provision of this Amendment shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Amendment shall be prohibited by or invalid under such 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 Amendment.
[Signature Page Follows]

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.
	
	
	WARNING – BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL.  IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON ITS PART TO COMPLY WITH THE AGREEMENT, OR ANY OTHER CAUSE.

	
		
	 
	DOMESTIC BORROWER:
PARK-OHIO INDUSTRIES, INC. 
 
 
By       
   Name:  Robert D. Vilsack 
   Title:    Secretary

	 
	CANADIAN BORROWER:
RB&W CORPORATION OF CANADA 
 
 
By       
   Name:  Robert D. Vilsack 
   Title:    Secretary

	 
	 

	 
	 

	
	
	WARNING – BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL.  IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON ITS PART TO COMPLY WITH THE AGREEMENT, OR ANY OTHER CAUSE.

	
		
	 
	EUROPEAN BORROWERS:
SUPPLY TECHNOLOGIES (UKGRP) LIMITED,  
a company incorporated in England and Wales with company number 0725298 
 
 
By       
Name:    
Title:   

	 
	APOLLO AEROSPACE COMPONENTS LIMITED, a company incorporated in England and Wales with a company number 02083500 
 
 
By       
Name:    
Title:   

	 
	SUPPLY TECHNOLOGIES (IRLG) LIMITED, a company incorporated under the laws of Ireland with a company number 412684 
 
 
By       
Name:    
Title:   

	
	
	WARNING – BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL.  IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON ITS PART TO COMPLY WITH THE AGREEMENT, OR ANY OTHER CAUSE.

	
		
	OTHER DOMESTIC LOAN PARTIES:
AJAX TOCCO MAGNETHERMIC CORPORATION
APOLLO AEROSPACE COMPONENTS LLC
ATBD, INC.
AUTOFORM TOOL & MANUFACTURING, LLC
BATES RUBBER, INC.
CANTON DROP FORGE, INC.
CONTROL TRANSFORMER, INC.
ELASTOMEROS TECNICOS MOLDEADOS, INC.
ENGINEERING MATERIALS, INC.
FECO, INC.
FLUID ROUTING SOLUTIONS, LLC
GATEWAY INDUSTRIAL SUPPLY LLC
GENERAL ALUMINUM MFG. COMPANY
INTEGRATED HOLDING COMPANY
INTEGRATED LOGISTICS HOLDING COMPANY

	

INTEGRATED LOGISTICS SOLUTIONS, INC.
LEWIS & PARK SCREW & BOLT COMPANY
PARK-OHIO FORGED & MACHINED PRODUCTS LLC
PARK-OHIO PRODUCTS, INC.
PHARMACY WHOLESALE LOGISTICS, INC.
PRECISION MACHINING CONNECTION LLC
RB&W MANUFACTURING LLC
RED BIRD, INC.
SNOW DRAGON LLC
STMX GAS, INC.
SUPPLY TECHNOLOGIES LLC
SUPPLY TECHNOLOGIES PROCUREMENT COMPANY, INC.
THE AJAX MANUFACTURING COMPANY
THE CLANCY BING COMPANY
TOCCO, INC.
TW MANUFACTURING CO.

Each By                 
   Name:  Robert D. Vilsack 
   Title:    Secretary

	
	
	WARNING – BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL.  IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON ITS PART TO COMPLY WITH THE AGREEMENT, OR ANY OTHER CAUSE.

	
		
	 
	POVI L.L.C.
By:  Integrated Logistics Holding Company 
Its:  Member

By       
   Name:  Robert D. Vilsack 
   Title:    Secretary

	 
	RB&W LTD.
By:  Integrated Logistics Holding Company 
Its:  Sole Member

By       
   Name:  Robert D. Vilsack 
   Title:    Secretary

	
	
	WARNING – BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL.  IF YOU DO NOT PAY ON TIME A COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON ITS PART TO COMPLY WITH THE AGREEMENT, OR ANY OTHER CAUSE.

	
		
	 
	OTHER CANADIAN LOAN PARTIES:

	 
	AJAX TOCCO MAGNETHERMIC CANADA LIMITED 
 
 
By       
   Name:  Robert D. Vilsack 
   Title:    Secretary

	 
	SUPPLY TECHNOLOGIES COMPANY OF CANADA
 
 
By       
   Name:  Robert D. Vilsack 
   Title:    Secretary

	
		
	 
	AGENTS AND LENDERS:

	 
	JPMORGAN CHASE BANK, N.A., individually as Administrative Agent and as a Lender 
 
 
By       
   Name: 
   Title:

	 
	JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, individually as Canadian Agent and as a Lender 
 
 
By       
   Name: 
   Title:

	 
	J.P. MORGAN EUROPE LIMITED, individually as European Agent and as a Lender 
 
 
By       
   Name: 
   Title:

	
		
	 
	BARCLAYS BANK PLC, 
as a Lender 
 
 
By       
   Name: 
   Title:

	
		
	 
	PNC BANK, NATIONAL ASSOCIATION, 
as a Lender 
 
 
By       
   Name: 
   Title:
PNC BANK CANADA BRANCH, 
as a Lender  
 
 
By       
   Name: 
   Title:

	
		
	 
	CIIZENS BUSINESS CAPITAL, a division of Citizens Asset Finance Inc., F/K/A RBS BUSINESS CAPITAL a division of RBS Asset Finance, Inc., a subsidiary of RBS Citizens, N.A., 
as a Lender  
 
 
By       
   Name: 
   Title:

	
		
	 
	KEYBANK NATIONAL ASSOCIATION, 
as a Lender  
 
 
By       
   Name: 
   Title:

	
		
	 
	FIRST NATIONAL BANK OF PENNSYLVANIA, 
as a Lender  
 
 
By       
   Name: 
   Title:

	
		
	 
	THE HUNTINGTON NATIONAL BANK, 
as a Lender  
 
 
By       
   Name: 
   Title:

	
		
	 
	BANK OF AMERICA, N.A, 
as a Lender. 
 
 
By       
   Name: 
   Title:
BANK OF AMERICA, N.A. 
(acting through its Canada Branch), 
as a Lender 
 
 
By       
   Name: 
   Title:

COMMITMENT SCHEDULE* 

	
														
	Lender
	Passport Scheme Number
	Domestic Revolving Commitment
	Canadian Revolving Subcommitment
	European Revolving Subcommitment
	Total Commitments

	JPMorgan Chase Bank, N.A.
	 
	

	$100,000,000.00
	

	

	$0.00
	

	

	$0.00
	

	

	$100,000,000.00
	

	JPMorgan Chase Bank, N.A. (Toronto Branch)
	 
	

	$0.00
	

	

	$14,196,428.57
	

	

	$0.00
	

	$14,196,428.57 (subcommitment)
	

	J.P. Morgan Europe Limited
	 
	

	$0.00
	

	

	$0.00
	

	

	$10,803,571.43
	

	$10,803,571.43 (subcommitment)
	

	Keybank National Association
	 
	

	$45,000,000.00
	

	

	$6,000,000.00
	

	

	$4,500,000.00
	

	$45,000,000.00 
$6,000,000.00 (subcommitment) 
$4,500,000.00 (subcommitment)
	

	PNC Bank, National Association
	 
	

	$45,000,000.00
	

	

	$0.00
	

	

	$4,500,000.00
	

	$45,000,000.00 
$4,500,000.00 (subcommitment)
	

	PNC Bank Canada Branch
	 
	

	$0.00
	

	

	$6,000,000.00
	

	

	$0.00
	

	$6,000,000.00 (subcommitment)
	

	Barclays Bank PLC
	 
	

	$45,000,000.00
	

	

	$6,000,000.00
	

	

	$4,500,000.00
	

	$45,000,000.00 
$6,000,000.00 (subcommitment) 
$4,500,000.00 (subcommitment)
	

	Citizens Business Capital
	 
	

	$40,000,000.00
	

	

	$4,375,000.00
	

	

	$3,125,000.00
	

	$40,000,000.00 
$5,000,000.00 (subcommitment) $3,750,000.00 (subcommitment)
	

	First National Bank of Pennsylvania
	 
	

	$40,000,000.00
	

	

	$0.00
	

	

	$0.00
	

	

	$40,000,000.00
	

	The Huntington National Bank
	 
	

	$30,000,000.00
	

	

	$0.00
	

	

	$0.00
	

	

	$30,000,000.00
	

	Bank of America, N.A.
	 
	

	$30,000,000.00
	

	

	$0.00
	

	

	$2,571,428.57
	

	$30,000,000.00 
$2,571,428.57 
(subcommitment)
	

	Bank of America, N.A. (Canada Branch)
	 
	

	$0.00
	

	

	$3,428,571.43
	

	

	$0.00
	

	$3,428,571.43 
(subcommitment)
	

	Total
	 
	

	$375,000,000.00
	

	

	$40,000,000.00
	

	

	$30,000,000.00
	

	

	$375,000,000.00
	

* Commitment Schedule reflects Commitments as of the First Amendment Effective Date.

EXHIBIT A
Closing Checklist
(attached)THIS
PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES
LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS
PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM.

 

PROMISSORY
NOTE

 

	$2,000,000.00
    	 	August
    3, 2018
	 	 	Salt
    Lake City, UT

 

FOR
VALUE RECEIVED, CO-DIAGNOSTICS, INC., a Utah corporation (“Borrower”) promises to pay to the order of ROBERT
SALNA, a Canadian resident (“Lender”), in lawful money of the United States of America, the principal sum of
two million dollars ($2,000,000) together with interest from the date of this Promissory Note (this “Note”)
on the unpaid principal balance at the interest rate(s) set forth below, computed on the basis of the actual number of days elapsed
and a year of 360 days. All unpaid principal, together with any then unpaid and accrued interest and other amounts payable hereunder,
shall be due and payable on the earlier of (i) the Maturity Date (as defined below), unless extended pursuant to the terms and
conditions hereof, or (ii) when, upon the occurrence of an Event of Default, such amounts are declared due and payable by Lender
or made automatically due and payable, in each case, in accordance with the terms hereof. Advances of the principal of this Note
may be made by Lender in one or more transfers.

 

1.
Payment Terms.

 

(a)
Maturity Date. The Maturity Date of this Note shall be July 31, 2019 (the “Maturity Date”).

 

(b)
Interest. Subject to the terms and conditions set forth herein, Borrower shall pay interest on the unpaid
principal balance of this Note outstanding from the date hereof until repayment (whether by acceleration or otherwise), at a rate
equal to Nine Percent (9.0%) per annum (“Note Rate”), quarterly in arrears on the first Business Day
of each calendar quarter, on the date of any prepayment of this Note and at the Maturity Date; provided, however, that
upon the occurrence and during the continuation of an Event of Default, all Obligations and other amounts due and owing shall
bear interest on the outstanding balance thereof at a per annum rate equal to Eighteen Percent (18.0%) from the date such
Event of Default first occurred until repaid in full in accordance with the terms and conditions set forth herein (“Default
Interest Rate”); provided, further, that if any such payment due and payable under this Note has not been received
by Lender within Five (5) Business Days after the date on which such payment was due and payable, then Borrower shall also pay
to Lender (in addition to such payment then due and payable) an amount equal to Five Percent (5.0%) of any outstanding interest
payment then due and payable (each, a “Late Fee”).

 

    	 	 	 

     

    

 

(c)
Mandatory Prepayment. In the event of a Change of Control (as defined below), the outstanding principal amount
of this Note, plus all accrued and unpaid interest, shall be due and payable immediately prior to the closing of such Change of
Control.

 

(d)
Prepayment. Borrower may prepay this Note in full or in part at any time.

 

(e)
Currency Fluctuations. It is agreed that Borrower assumes the risk of currency fluctuations between the US and Canadian
Dollars in repayment of any principal amounts. Therefore, whenever Borrower repays any amount of principal, all such repayments
shall be in Canadian Dollars. Provided, however, in no event shall Borrower pay less than $2,600,000 Canadian in repayment of
all principal owed hereunder.

 

2.
Events of Default. The occurrence of any of the following shall constitute an “Event of Default”
under this Note:

 

(a)
Failure to Pay. Borrower shall fail to pay when due any principal, interest or other payment on the due date required
under the terms of this Note or any other Loan Document on the date due and any such failure shall remain uncured for a period
of ten (10) Business Days from the occurrence thereof.

 

(b)
Representations and Warranties. Any representation, warranty, certificate or other statement (financial or otherwise)
made or furnished by or on behalf of Borrower to Lender in writing in connection with this Note, or as an inducement to Lender
to enter into this Note, shall be false, incorrect, incomplete or misleading in any respect when made or furnished.

 

(c)
Breach of Covenants. Borrower shall fail to observe or perform any covenant, obligation, condition or agreement
contained in this Note.

 

(d)
Other Payment Obligations. Defaults shall exist under any agreements of Borrower with any third party or
parties which consists of the failure to pay any indebtedness for borrowed money at maturity or which results in a right by such
third party or parties, whether or not exercised, to accelerate the maturity of such indebtedness for borrowed money of Borrower,
in each case, in an aggregate amount in excess of $50,000.

 

(e)
Voluntary Bankruptcy or Insolvency Proceedings. Borrower shall (i) apply for or consent to the appointment
of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) admit in writing
its inability to pay its debts generally as they mature, (iii) make a general assignment for the benefit of its or any of its
creditors, (iv) be dissolved or liquidated, (v) commence a voluntary case or other proceeding seeking liquidation, reorganization
or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in
effect or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary
case or other proceeding commenced against it, or (vi) take any action for the purpose of effecting any of the foregoing.

 

    	 	-2-	 

     

    

 

(f)
Involuntary Bankruptcy or Insolvency Proceedings. Proceedings for the appointment of a receiver, trustee,
liquidator or custodian of Borrower, or of all or a substantial part of the property thereof, or an involuntary case or other
proceedings seeking liquidation, reorganization or other relief with respect to Borrower or the debts thereof under any bankruptcy,
insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such proceeding
shall not be dismissed or discharged within thirty (30) days of commencement.

 

(g)
Judgments. A final judgment or order for the payment of money in excess of $100,000 (exclusive of amounts covered
by insurance) shall be rendered against Borrower and the same shall remain undischarged for a period of thirty (30) days during
which execution shall not be effectively stayed, or any judgment, writ, assessment, warrant of attachment, or execution or similar
process shall be issued or levied against a substantial part of the property of Borrower and such judgment, writ, or similar process
shall not be released, stayed, vacated or otherwise dismissed within 30 days after issue or levy.

 

(h)
Material Adverse Change. A Material Adverse Change shall occur, which shall be defined as any change in the business
of the Borrower in addition to any of those listed in this Paragraph 2 which would materially affect the ability of the Borrower
to repay the loan such as a violation of SEC laws or a delisting of the Borrowers stock from a recognized stock exchange.

 

(i)
Impairment. Lender shall determine, in good faith, that the repayment of the Note is unlikely to occur or has been
jeopardized.

 

(j)
Change in Ownership or Control. More than 50% of the then issued and outstanding shares of common stock entitled
to vote on any matter submitted to the shareholders of Borrower shall be acquired by a single party or parties such that such
holders of common stock can control the Borrower (a “Change of Control”).

 

3.
Rights of Lender upon Default. Upon the occurrence of any Event of Default which is continuing after the expiration
of any applicable notice and cure period, (other than an Event of Default described in Sections 2(d) or 2(e)) and at any time
thereafter during the continuance of such Event of Default Lender may declare all outstanding amounts payable by Borrower hereunder
to be immediately due and payable without presentment, demand, protest or any other notice of any kind, all of which are hereby
expressly waived, anything contained herein to the contrary notwithstanding. Upon the occurrence of any Event of Default described
in Sections 2(d) and 2(e), immediately and without notice, all outstanding obligations, liabilities or other amounts payable by
Borrower hereunder shall automatically become immediately due and payable, without presentment, demand, protest or any other notice
of any kind, all of which are hereby expressly waived. In addition to the foregoing remedies, upon the occurrence and during the
continuance of any Event of Default, Lender may exercise any other right power or remedy against Borrower granted to it or otherwise
permitted to it by law, either by suit in equity or by action at law, or both.

 

4.
Waivers. Borrower waives presentment and demand for payment. Protest notice of intention to accelerate, notice of
acceleration, and notice of protest and non-payment and agree that their liability on this Note shall not be affected by, and
hereby consent to, any renewal or extension in the time of payment hereof, any indulgences, or any release or change in any security
for the payment of this Note. No waiver by Lender of any of its rights hereunder shall be considered a waiver of any other or
subsequent right of Lender, and no delay or omission by Agent in exercising any right hereunder shall impair such right or be
construed as a waiver thereof or any acquiescence therein.

 

    	 	-3-	 

     

    

 

5.
Cumulative Rights. For the avoidance of doubt, all rights available to Lender under this Note shall be cumulative
of and in addition to all other rights granted to Lender at law or in equity, whether or not the Note be due and payable and whether
or not Lender shall have instituted any suit for collection, foreclosure, or other action under or in connection with the Note.

 

6.
Expenses. Borrower shall pay on demand all reasonable fees and expenses, including attorneys’ fees and expenses,
court costs or other amounts incurred by Lender or its affiliates or agents in connection with the collection, enforcement or
attempted enforcement of any of the obligations or other liabilities of Borrower to Lender under this Note or in preserving any
Lender’s rights and remedies (including, without limitation, all such fees and expenses incurred in connection with any
“workout” or restructuring affecting the Note or the obligations thereunder or any bankruptcy or similar proceeding
involving Borrower or any of its subsidiaries).

 

7.
Governing Law. This Note and all actions arising out of or in connection with this Note shall be governed by and
construed in accordance with the laws of the State of Utah, without regard to the conflicts of law provisions of the State of
Utah or of any other state. Jurisdiction for any actions brought under this Note shall be in any federal or state district court
located in Salt Lake County, Utah.

 

8.
Successors and Assigns. This Note shall be binding upon and inure to the benefit of Borrower and Lender and their
respective successors and assigns. Neither this Note nor any of the rights, interests or obligations hereunder may be assigned,
by operation of law or otherwise, in whole or in part, by Borrower without the prior written consent of Lender. Lender shall be
entitled to assign its rights and duties hereunder, or any participatory interest therein, to any person who shall for all purposes
hereof be a “Lender” hereunder the same as if originally named as the “Lender” herein.

 

9.
Certain Provisions Regarding Payments. Whenever any payment shall be due under this Note on a day which is not a
Business Day, the date on which such payment is due shall be extended to the next succeeding Business Day. All payments made as
scheduled on this Note shall be applied, to the extent thereof, first to accrued but unpaid expenses of Lender, next to interest
and then to unpaid principal,. Acceptance by the holder hereof of any payment in an amount less than the amount then due on any
indebtedness shall be deemed an acceptance on account only and shall not in any way excuse the existence of an Event of Default.

 

10.
Waivers and Amendments. Any provision of this Note may be amended, waived or modified only upon the written consent
of Borrower, Agent and Lender.

 

11.
Entire Agreement. This Note contains the entire agreement between the parties with respect to the subject matter
hereof and thereof. THIS NOTE IS A FINAL EXPRESSION OF THE AGREEMENT BETWEEN LENDER AND BORROWER, AND THESE AGREEMENTS MAY NOT
BE CONTRADICTED BY EVIDENCE OF ANY ALLEGED ORAL AGREEMENT.

 

    	 	-4-	 

     

    

 

12.
Construction. This Note is the result of negotiations among, and has been reviewed by, Borrower and Lender and their
respective counsel. Accordingly, this Note shall be deemed to be the product of all parties hereto, and no ambiguity shall be
construed in favor of or against Borrower or Lender.

 

13.
Notices. All notices, requests, demands or other communications provided for hereunder shall be in writing. Notices
may be given by personal delivery, by overnight courier, by facsimile transmission, email transmission to an address expressly
approved by Lender or the Borrower, as the case may be, or by certified or registered United States mail, return receipt requested.
Except as otherwise expressly provided herein, notice shall be deemed to have been given (a) if by personal delivery, on the date
of delivery; (b) if by overnight courier, on the earlier of the date delivery is first attempted or the next Business Day after
the same has been delivered to a reputable commercial overnight courier; (c) if by facsimile or email transmission, on the date
of such transmission if sent by 5:00 p.m. Salt Lake City, Utah time on a Business Day, or if sent thereafter, on the next Business
Day; provided, however, that (i) evidence of a successful transmission shall be retained by the party sending the same
and (ii) a copy of such notice shall also be sent on the same day as the facsimile or email transmission using another means for
giving notice permitted herein; and (d) if by certified or registered United States Mail, on the earlier of the date delivery
is first attempted or two (2) Business Days after delivery to the United States Post Office, postage prepaid, return receipt requested.
Notices shall be sent to the intended recipient as follows, or to the most recent addresses which the indented recipient has provided
to the other parties for purposes of, and in accordance with, this Section 8(j):

 

	Borrower:	 	CO-DIAGNOSTICS,
    INC.
	 	 	2401
    S. Foothill Drive, Suite D
	 	 	Salt
    Lake City, Utah 84109
	 	 	Atten:
    Dwight H. Egan
	 	 	d.egan@codiagnostics.com

 

 

	Lender:	 	ROBERT
    SALNA
	 	 	64
    Industrial Road
	 	 	Richmond
    Hill,
	 	 	Ontario,
    L4C 2Y1
	 	 	Canada
	 	 	robertsalna@me.com

 

14.
Counterparts. This Note may be executed in one or more counterparts, each of which will be deemed an original, but
all of which together will constitute one and the same agreement. Facsimile or other electronic copies of signed signature pages
will be deemed binding originals.

 

15.
Assignment. Lender may at any time assign its rights in this Note, or any part thereof. In addition, Lender may
at any time sell one or more participations in the Note. Borrower may not assign its interest in this Note, or any other agreement
with Lender or any portion thereof, either voluntarily or by operation of law, without the prior written consent of Lender.

 

(Signature
Page Follows)

 

    	 	-5-	 

     

    

 

IN
WITNESS WHEREOF, Borrower has caused this Promissory Note to be duly and validly issued to Lender as of the date first set forth
above.

 

	 	BORROWER:
	 	 	 
	 	CO-DIAGNOSTICS,
    INC.
	 	a
    Utah corporation
	 	 	 
	 	 	/s/
    Dwight H. Egan
	 	By:	Dwight
    H. Egan
	 	Its:	President/CEO

  

    	 	-Signature Page to Promissory Note-

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