Document:

Exhibit 10.2

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement
("Agreement"), dated June 24, 2016, is made by and between EVANS BREWING COMPANY, INC., a Delaware corporation ("Company"),
and KODIAK CAPITAL GROUP, LLC a Delaware limited liability company (the "Investor").

 

RECITALS

 

WHEREAS, upon the terms and subject
to the conditions of the Equity Purchase Agreement ("Purchase Agreement"), between the Investor and the Company, the
Company has agreed to issue and sell to the Investor shares (the "Put Shares") of its common stock, $0.0001 par value
per share (the "Common Stock") from time to time for an aggregate investment price of up to One Million Dollars ($1,000,000)
(the "EPA Securities");

 

WHEREAS, as a condition for the
execution of the Purchase Agreement by the Investor, the Company has agreed to issue to the Investor 25,000 shares of Common Stock
(the “Commitment Shares”); and

 

WHEREAS, to induce the Investor
to execute and deliver the Purchase Agreement, the Company has agreed to provide certain registration rights under the Securities
Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the "Securities
Act"), and applicable state securities laws with respect to the EPA Securities, the shares of Common Stock underlying the
Commitment Shares, and any securities issued or issuable with respect to any of the foregoing by way of exchange, stock dividend
or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization
or otherwise (together with the EPA Securities and the Note Securities, the “Registered Securities”).

 

NOW, THEREFORE, in consideration
of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Company and the Investor hereby agree as follows:

 

1.  Definitions.

 

(a)
As used in this Agreement, the following terms shall have the following meaning:

 

(i)
"Execution Date" means the date of this Agreement.

 

(ii)
"Investor" has the meaning set forth in the preamble to this Agreement.

 

(iii)
"Register," "registered" and "registration" refer to a registration effected by preparing and filing
a Registration Statement or Statements in compliance with the Securities Act and pursuant to Rule 415 under the Securities Act
or any successor rule providing for offering securities on a delayed or continuous basis ("Rule 415"), and the declaration
or ordering of effectiveness of such Registration Statement by the United States Securities and Exchange Commission (the "SEC").

 

(iv)
"Registered Securities" will have the same meaning as set forth in the Purchase Agreement.

 

(v)
"Registration Statement" means the Company’s registration
statement on Form S-1, or any similar registration statement of the Company filed with SEC under the Securities Act with respect
to the Registered Securities.

 

(vi)
"EDGAR" means the SEC's Electronic Data Gathering, Analysis and Retrieval System.

 

(vii)
“Exchange Act” means
the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations of the SEC thereunder,
all as the same will then be in effect.

 

(b)
Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Purchase Agreement.

 

    

     

    

 

2. 
Obligation of the Company. In connection with the registration of the Registered Securities, the Company shall do each of the
following:

 

(a)
Prepare promptly and file with the SEC by July 30, 2016, a Registration Statement with respect to not less than the maximum allowable
under Rule 415 of Registered Securities, and thereafter use all commercially reasonable efforts to cause such Registration Statement
relating to the Registered Securities to become effective within five (5) business days after notice from the Securities and Exchange
Commission that such Registration Statement may be declared effective, and keep the Registration Statement effective at all times
prior to the termination of the Purchase Agreement until the earliest of (i) the date that is three months after the completion
of the last Closing Date under the Purchase Agreement, (ii) the date when the Investor may sell all Registered Securities under
Rule 144 without volume limitations, or (iii) the date the Investor no longer owns any of the Registered Securities (collectively,
the "Registration Period"), which Registration Statement (including any amendments or supplements, thereto and prospectuses
contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;

 

(b)
Prepare and file with the SEC such amendments (including post-effective amendments) and supplements to the Registration Statement
and the prospectus used in connection with the Registration Statement as may be necessary to keep the Registration Statement effective
at all times during the Registration Period, and to comply with the provisions of the Securities Act with respect to the disposition
of all Registered Securities of the Company covered by the Registration Statement until the expiration of the Registration Period.

 

(c)
With respect to the Registered Securities, upon written request by the Investor, permit counsel designated by Investor to review
the Registration Statement and all amendments and supplements thereto a reasonable period of time (but not less than two (2) business
days) prior to their filing with the SEC, and not file any document in a form to which such counsel reasonably objects.

 

(d)
As promptly as practicable after becoming aware of the following facts, the Company shall notify Investor and Investor’s
legal counsel identified to the Company and (if requested by any such person) confirm such notice in writing no later than one
(1) business day thereafter (i): (A) when a prospectus or any prospectus supplement or post-effective amendment to the Registration
Statement is filed; (B) with respect to the Registration Statement or any post-effective amendment, when the same has become effective;
(ii) of the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement covering any or all
of the Registered Securities or the initiation of any proceedings for that purpose; and (iii) of the receipt by the Company of
any notification with respect to the suspension of the qualification or exemption from qualification of any of the Registered
Securities for sale in any jurisdiction, or the initiation or threatening of any proceeding for such purpose.

 

(e)
Unless available to the Investor without charge through EDGAR, the SEC's website or the Company's website, furnish to Investor,
promptly after the same is prepared and publicly distributed, filed with the SEC, or received by the Company, one (1) copy of
the Registration Statement, each preliminary prospectus and the prospectus, and each amendment or supplement thereto;

 

(f)
Use all commercially reasonable efforts to (i) register and/or qualify the Registered Securities covered by the Registration Statement
under such other securities or blue sky laws of such jurisdictions as the Investor may reasonably request and in which significant
volumes of shares of Common Stock are traded, (ii) prepare and file in those jurisdictions such amendments (including post-effective
amendments) and supplements to such registrations and qualifications as may be necessary to maintain the effectiveness thereof
at all times during the Registration Period, (iii) take such other actions as may be necessary to maintain such registrations
and qualification in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary
or advisable to qualify the Registered Securities for sale in such jurisdictions: provided, however, that the Company shall
not be required in connection therewith or as a condition thereto to (A) qualify to do business in any jurisdiction where it would
not otherwise be required to qualify but for this Section 3(f), (B) subject itself to general taxation in any such jurisdiction,
(C) file a general consent to service of process in any such jurisdiction, (D) provide any undertakings that cause more than nominal
expense or burden to the Company or (E) make any change in its charter or by-laws or any then existing contracts, which in each
case the Board of Directors of the Company determines to be contrary to the best interests of the Company and its stockholders;

 

    	 	2	 

     

    

 

(g)
As promptly as practicable after becoming aware of such event, notify the Investor of the happening of any event of which the
Company has knowledge, as a result of which the prospectus included in the Registration Statement, as then in effect, includes
any untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading ("Registration Default"),
and promptly prepare a supplement or amendment to the Registration Statement or other appropriate filing with the SEC to correct
such untrue statement or omission, and take any other commercially reasonable steps to cure the Registration Default, and, unless
available to the Investor without charge through EDGAR, the SEC's website or the Company's website, deliver a number of copies
of such supplement or amendment to the Investor as the Investor may reasonably request.

 

(h)  Use its commercially
reasonable efforts to secure quotation for such Registered Securities on the OTCQB, OTCQX or OTCPink markets;

 

(i)
Provide a transfer agent for the Registered Securities (the “Transfer Agent”) not later than the Execution Date under
the Purchase Agreement;

 

(j)
Cooperate with the Investor to facilitate the timely preparation and delivery of certificates for the Registered Securities to
be offered pursuant to the Registration Statement and enable such certificates for the Registered Securities to be in such denominations
or amounts as the case may be, as the Investor may reasonably request and registration in such names as the Investor may request;
and, within five (5) business days after a Registration Statement which includes Registered Securities is ordered effective by
the SEC, the Company shall deliver, and shall cause legal counsel selected by the Company to deliver, to the Transfer Agent (with
copies to the Investor) an appropriate instruction and opinion of such counsel, if so required by the Transfer Agent; and

 

(k)
Take all other commercially reasonable actions necessary to expedite and facilitate distribution to the Investor of the Registered
Securities pursuant to the Registration Statement.

 

3.
Obligations of the Investor. In connection with the registration of the Registered Securities, the Investor shall have the following
obligations;

 

(a)
It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement with
respect to the Registered Securities of the Investor that the Investor shall timely furnish to the Company such information regarding
itself, the Registered Securities held by it, and the intended method of disposition of the Registered Securities held by it,
as shall be reasonably required to effect the registration of such Registered Securities and shall timely execute such documents
in connection with such registration as the Company may reasonably request.

 

(b)
The Investor by such Investor’s acceptance of the Registered Securities
agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of the
Registration Statement hereunder; and

 

(c)
The Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section
2(d)(ii) or (iii) or 2(g) above, the Investor will immediately discontinue disposition of Registered Securities pursuant to the
Registration Statement covering such Registered Securities until the Investor receives the copies of the supplemented or amended
prospectus contemplated by Section 2(d)(ii) or (iii) or 2(g) and, if so directed by the Company, the Investor shall deliver to
the Company (at the expense of the Company) or destroy (and deliver to the Company a certificate of destruction) all copies in
the Investor’s possession, of the prospectus covering such Registered
Securities current at the time of receipt of such notice.

 

4.
Expenses of Registration. All reasonable expenses incurred in connection
with registrations, filings or qualifications pursuant to Section 2, including, without limitation, all registration, listing,
and qualifications fees, printers and accounting fees, the fees and disbursements of counsel for the Company shall be borne by
the Company.

 

    	 	3	 

     

    

 

5.
Indemnification. After Registered Securities are included in a Registration
Statement under this Agreement:

 

(a)
To the extent permitted by law, the Company will indemnify and hold harmless, the Investor, the directors, if any, of such Investor,
the officers, if any, of such Investor, each person, if any, who controls the Investor within the meaning of the Securities Act
or the Exchange Act (each, an "Indemnified Person"), against any losses, claims, damages, liabilities or expenses (joint
or several) incurred (collectively, "Claims") to which any of them may become subject under the Securities Act, the
Exchange Act or otherwise, insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof)
arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact contained in the Registration
Statement or any post-effective amendment thereof or the omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement
of a material fact contained in any preliminary prospectus or contained in the final prospectus (as amended or supplemented, if
the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein
any material fact necessary to make the statements made therein, in the light of the circumstances under which the statements
therein were made, not misleading or (iii) any violation or alleged violation by the Company of the Securities Act, the Exchange
Act, any state securities law or any rule or regulation under the Securities Act, the Exchange Act or any state securities law
(the matters in the foregoing clauses (i) through (iii) being collectively referred to as "Violations"). Subject to
Section 5(b) hereof, the Company shall reimburse the Investor, promptly as such expenses are incurred and are due and payable,
for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any
such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section
5(a) shall not (i) apply to any Claims arising out of or based upon a Violation which occurs in reliance upon and in conformity
with information furnished in writing to the Company by or on behalf of any Indemnified Person expressly for use in connection
with the preparation of the Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was
timely made available by the Company pursuant to Section 2(b) hereof; (ii) with respect to any preliminary prospectus, inure to
the benefit of any such person from whom the person asserting any such Claim purchased the Registered Securities that are the
subject thereof (or to the benefit of any person controlling such person) if the untrue statement or omission of material fact
contained in the preliminary prospectus was corrected in the prospectus, as then amended or supplemented, if such prospectus was
timely made available by the Company pursuant to Section 2(b) hereof; (iii) be available to the extent such Claim is based on
a failure of the Investor to deliver or cause to be delivered the prospectus made available by the Company; or (iv) apply to amounts
paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent
shall not be unreasonably withheld. The Investor will indemnify the Company, its officers, directors and agents (including legal
counsel) against any claims arising out of or based upon a Violation which occurs in reliance upon and in conformity with information
furnished in writing to the Company, by or on behalf of the Investor, expressly for use in connection with the preparation of
the Registration Statement, subject to such limitations and conditions set forth in the previous sentence.

 

(b)
Promptly after receipt by an Indemnified Person under this Section 5 of notice of the commencement of any action (including any
governmental action), such Indemnified Person shall, if a Claim in respect thereof is to be made against any indemnifying party
under this Section 5, deliver to the indemnifying party a written notice of the commencement thereof and the indemnifying party
shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying
party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party
and the Indemnified Person, as the case may be; provided, however, that an Indemnified Person shall have the right
to retain its own counsel with the reasonable fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion
of counsel retained by the indemnifying party, the representation by such counsel of the Indemnified Person and the indemnifying
party would be inappropriate due to actual or potential differing interests between such Indemnified Person and any other party
represented by such counsel in such proceeding. In such event, the Company shall pay for only one separate legal counsel for the
Investor selected by the Investor. The failure to deliver written notice to the indemnifying party within a reasonable time of
the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person under
this Section 5, except to the extent that the indemnifying party is prejudiced in its ability to defend such action. The indemnification
required by this Section 5 shall be made by periodic payments of the amount thereof during the course of the investigation or
defense, as such expense, loss, damage or liability is incurred and is due and payable.

 

    	 	4	 

     

    

 

6.
Contribution. To the extent any indemnification by an indemnifying party
is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for
which it would otherwise be liable under Section 5 to the fullest extent permitted by law; provided, however, that
(a) no contribution shall be made under circumstances where the maker would not have been liable for indemnification under the
fault standards set forth in Section 5 and; (b) no seller of Registered Securities guilty of fraudulent misrepresentation (within
the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any seller of Registered Securities
who was not guilty of such fraudulent misrepresentation.

 

7.
Reports under Exchange Act. With a view to making available to the Investor the benefits of Rule 144 promulgated under the Securities
Act or any other similar rule or regulation of the SEC that may at any time permit the Investor to sell securities of the Company
to the public without registration ("Rule 144"), the Company agrees to use its commercially reasonable efforts to:

 

(a)
make and keep public information available, as those terms are understood and defined in Rule 144;

 

(b)
file with the SEC in a timely manner all reports and other documents required of the Company under the Securities Act for so long
as the Company remains subject to such requirements, and the filing of such reports is required for sales under Rule 144;

 

(c)
furnish to the Investor so long as the Investor owns Registered Securities, promptly upon request, (i) a written statement by
the Company that it has complied with the reporting requirements of Rule 144, the Securities Act and the Exchange Act, (ii) unless
available to the Investor without charge through EDGAR, the SEC's website or the Company's website, a copy of the most recent
annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information
as may be reasonably requested to permit the Investors to sell such securities pursuant to Rule 144 without registration; and

 

(d)
 at the request of any Investor of Registered Securities, give its Transfer
Agent instructions (supported by an opinion of Company counsel, if required or requested by the Transfer Agent) to the effect
that, upon the Transfer Agent’s receipt from such Investor of:

 

(i)
a certificate (a “Rule 144 Certificate”)
certifying (A) that such Investor has held the shares of Registered Securities which the Investor proposes to sell (the “Securities
Being Sold”) for a period of not less than (6) months and (B) as
to such other matters as may be appropriate in accordance with Rule 144 under the Securities Act, and

 

(ii)
an opinion of counsel acceptable to the Company (for which purposes it is agreed that the initial Investor’s
counsel shall be deemed acceptable if such opinion is not given by Company counsel) that, based on the Rule 144 Certificate, Securities
Being Sold may be sold pursuant to the provisions of Rule 144, even in the absence of an effective Registration Statement, the
Transfer Agent is to effect the transfer of the Securities Being Sold and issue to the buyer(s) or transferee(s) thereof one or
more stock certificates representing the transferred Securities Being Sold without any restrictive legend and without recording
any restrictions on the transferability of such shares on the Transfer Agent’s
books and records (except to the extent any such legend or restriction results from facts other than the identity of the Investor,
as the seller or transferor thereof, or the status, including any relevant legends or restrictions, of the shares of the Securities
Being Sold while held by the Investor). If the Transfer Agent requires any additional documentation at the time of the transfer,
the Company shall deliver or cause to be delivered all such reasonable additional documentation as may be necessary to effectuate
the issuance of an unlegended certificate.

 

    	 	5	 

     

    

 

8.
Miscellaneous.

 

(a)
Registered Owners. A person or entity is deemed to be a holder of Registered Securities whenever such person or entity owns of
record such Registered Securities. If the Company receives conflicting instructions, notices or elections from two or more persons
or entities with respect to the same Registered Securities, the Company shall act upon the basis of instructions, notice or election
received from the registered owner of such Registered Securities.

 

(b)
Rights Cumulative; Waivers. The rights of each of the parties under this Agreement are cumulative. The rights of each of the parties
hereunder shall not be capable of being waived or varied other than by an express waiver or variation in writing. Any failure
to exercise or any delay in exercising any of such rights shall not operate as a waiver or variation of that or any other such
right. Any defective or partial exercise of any of such rights shall not preclude any other or further exercise of that or any
other such right. No act or course of conduct or negotiation on the part of any party shall in any way preclude such party from
exercising any such right or constitute a suspension or any variation of any such right.

 

(c)
Benefit; Successors Bound. This Agreement and the terms, covenants, conditions, provisions, obligations, undertakings, rights,
and benefits hereof, shall be binding upon, and shall inure to the benefit of, the undersigned parties and their successors.

 

(d)
Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof.
There are no promises, agreements, conditions, undertakings, understandings, warranties, covenants or representations, oral or
written, express or implied, between them with respect to this Agreement or the matters described in this Agreement, except as
set forth in this Agreement and in the other documentation relating to the transactions contemplated by this Agreement. Any such
negotiations, promises, or understandings shall not be used to interpret or constitute this Agreement.

 

(e)
Amendment. Any provision of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular
instance and either retroactively or prospectively), only with the written consent of the Company and Investor. Any amendment
or waiver affected in accordance with this Section 9 shall be binding upon the Company.

 

(f)
Severability. Each part of this Agreement is intended to be severable. In the event that any provision of this Agreement is found
by any court or other authority of competent jurisdiction to be illegal or unenforceable, such provision shall be severed or modified
to the extent necessary to render it enforceable and as so severed or modified, this Agreement shall continue in full force and
effect.

 

(g)
Notices. Any and all notices or other communications or deliveries to be provided by the Investor hereunder shall be in writing
and delivered personally, by facsimile, by email attachment, or sent by a nationally recognized overnight courier service, addressed
to the Company, at the address set forth below, or such other facsimile number, email address, or address as the Company may specify
for such purposes by notice to the Holder delivered in accordance with this Section 8(g). Any and all notices or other communications
or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, by email attachment,
or sent by a nationally recognized overnight courier service addressed to the Investor at the facsimile number or email address
or address of the Investor set forth below. Any notice or other communication or deliveries hereunder shall be deemed given and
effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile
number or email attachment to the email address set forth on the signature pages attached hereto prior to 5:30 p.m. (New York
City time) on any date, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered
via facsimile at the facsimile number or email attachment to the email address set forth on the signature pages attached hereto
on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (iii) the second Trading Day
following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (iv) upon actual receipt by
the party to whom such notice is required to be given. The addresses for such communications shall be:

 

If to the Company:

Evans Brewing Company

3815 S. Main Street

Santa Ana, CA 92707

Attn: Chief Executive Officer

 

If to the Investor:

Kodiak Capital Group, LLC

260 Newport Center Drive

Newport Beach, CA 92660

info@kodiakfunds.com

 

    	 	6	 

     

    

 

Either party hereto may from time to time change its
address or email for notices under this Section 8(g) by giving at least ten (10) days' prior written notice of such changed address
to the other party hereto.

 

(h)
Governing Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the Company and
the Investor shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving
effect to principles of conflicts of law. Each of the Company and Investor hereby submit to the exclusive jurisdiction of the
United States Federal and state courts located in California with respect to the the adjudication of any dispute hereunder or
in connection herewith or with any transaction contemplated hereby or discussed herein.

 

(i)
Consents. The person signing this Agreement on behalf of each party hereby represents and warrants that he has the necessary power,
consent and authority to execute and deliver this Agreement on behalf of that party.

 

(j)
Further Assurances. In addition to the instruments and documents to be made, executed and delivered pursuant to this Agreement,
the parties hereto agree to make, execute and deliver or cause to be made, executed and delivered, to the requesting party such
other instruments and to take such other actions as the requesting party may reasonably require to carry out the terms of this
Agreement and the transactions contemplated hereby.

 

(k)
Section Headings. The Section headings in this Agreement are for reference purposes only and shall not affect in any way the meaning
or interpretation of this Agreement.

 

(l)
Construction. Unless the context otherwise requires, when used herein, the singular shall be deemed to include the plural, the
plural shall be deemed to include each of the singular, and pronouns of one or no gender shall be deemed to include the equivalent
pronoun of the other or no gender.

 

(m)
Execution in Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original
but all of which shall constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the
other party hereto by email of a .pdf or telephone line facsimile transmission of a copy of this Agreement bearing the signature
of the party so delivering this Agreement. A facsimile transmission or email of a .pdf of this signed Agreement shall be legal
and binding on all parties hereto.

 

[-Signature page follows-]

 

    	 	7	 

     

    

 

IN WITNESS WHEREOF, the parties
have caused this Agreement to be duly executed by their respective officers thereunto duly authorized as of the day and year first
above written.

 

	 	COMPANY:
	 	 
	 	EVANS BREWING COMPANY, INC.
	 	 	 
	 	By:	/s/ Michael Rapport
	 	Name:	Michael Rapport
	 	Title:	Chief Executive Officer
	 	 	 
	 	INVESTOR:
	 	 
	 	KODIAK CAPITAL GROUP, LLC
	 	 	 
	 	By:	/s/ Ryan Hodson
	 	Name:	Ryan Hodson
	 	Title:	Managing Member

 

 

 

 

[-Signature page to Registration Rights Agreement-]Exhibit

Exhibit 10.1

Amendment No. 3
to
Fourth Amended and Restated Loan Agreement
Among
Certain Lenders,
HSBC Bank USA, National Association, As Administrative Agent
Certain Designated Borrowers
And
MOOG INC.

This Amendment No. 3 dated as of June 28, 2016 (“Amendment”) to the Fourth Amended and Restated Loan Agreement dated as of March 28, 2013 as amended by Amendment No. 1 thereto dated as of May 22, 2014 and Amendment No. 2 thereto dated as of December 31, 2015 (collectively, the “Agreement”) is entered into by and among MOOG INC., a New York corporation (“Company”), certain lenders which are currently parties to the Agreement (“Lenders”), and HSBC BANK USA, NATIONAL ASSOCIATION, a bank organized under the laws of the United States of America, as administrative agent for the Lenders (“Administrative Agent”).

RECITALS

A.    The Company has requested, and the Administrative Agent and the Lenders have agreed to extend the Revolving Credit Maturity Date under the Agreement, and make certain other modifications to the Agreement, including but not limited to, recognizing that the Company’s subsidiary, Moog Techtron Corp. was merged into the Company as of January 1, 2016, and is no longer a “Guarantor” under the Agreement, modifying certain agency provisions, financial covenants and Permitted Acquisitions, Permitted Distributions and Restricted Payments, and making certain other clarifying modifications, all as set forth in this Amendment.

B.    The Company and each of the Guarantors will benefit from the modifications set forth herein.

C.    The Administrative Agent and the Lenders are agreeable to the foregoing to the extent set forth in this Amendment and subject to each of the terms and conditions stated 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 Company and its Subsidiaries, the parties hereto agree as follows:

1.    Definitions.  Except to the extent otherwise specified  herein, capitalized terms used in this Amendment shall have the same meanings specified in the Agreement.

2.    Modifications to the Agreement.

(a)    In Section 1.1 entitled “Definitions”, the following new definitions are added in the appropriate alphabetical order:

“Amendment No. 3” - Amendment No. 3 to Fourth Amended and Restated Loan Agreement dated as of June 28, 2016 among the Company, the Lenders and the Administrative Agent.

“Bail-In Action” - the exercise of any Write-down and Conversion Powers in respect of any liability of an EEA Financial Institution.

“Bail-In Legislation” -  in relation to an EEA Member Country which has implemented, or which at any time implements, Article 55 of Directive 2014/59/EU, as amended or re-enacted, establishing a framework for the recovery and resolution of credit institutions and investment firms, the relevant implementing law or regulation as described in the EU Bail-In Legislation Schedule from time to time.

“EEA Financial Institution” - means (a) any institution established in any EEA Member Country which is subject to the supervision of a Resolution Authority, (b) any entity established in any EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any institution established in any EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.

“EEA Member Country” - any member state of the European Union, Iceland, Liechtenstein and Norway.

“EU Bail-In Legislation Schedule” - the document described as such and published by the Loan Market Association (or any successor person) from time to time.

“Material Acquisition” - any Permitted Acquisition (whether by direct purchase, merger or otherwise and whether in one or more related transactions) by the Company or any Subsidiary of the Company in which the total Consideration for said acquisition  exceeds 5% of the Consolidated Total Assets as of the last day of the most recently ended fiscal quarter of the Company for which financial statements are publicly available.

“Resolution Authority” - any body which has authority to exercise any Write-down and Conversion Powers.

“Write-down and Conversion Powers” - in relation to any Bail-In Legislation described in the EU Bail-In Legislation Schedule from time to time, the powers described as such in relation to that Bail-In Legislation in the EU Bail-In Legislation Schedule.

(b)    In Section 1.1 entitled “Definitions”, the present definition of “Defaulting Lender” is amended to add the following provision at the end thereof:

“, (e) has, or has a direct or indirect parent company that has become the subject of a Bail-In Action or (f) with respect to any Lender that is a Foreign Lender, has failed, within ten (10) Business Days after request by the Administrative Agent or the Company acting in good faith, to provide certification of such Foreign Lender’s compliance with the requirements of FACTA, provided however such Foreign Lender shall cease to be a Defaulting Lender pursuant to this clause (f) upon the Administrative Agent’s or Company’s receipt of such certification.  Any determination by the Administrative Agent that a Lender is a Defaulting Lender under any one or more of clauses (a) through (f) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender upon delivery of written notice of such determination to the Company, Issuing Bank, Swingline Lender and each Lender.”

(c)    In Section 1.1 entitled “Definitions”, the present definition of “Designated Hedge Agreement” is deleted and replaced with the following:

“Designated Hedge Agreement” - any Hedge Agreement to which any Borrower or any of the Subsidiaries which is an Eligible Contract Participant is a party and as to which a Lender or any Affiliate of a Lender, or a Person that upon the effective date of such Hedge Agreement was a Lender or an Affiliate of such Lender (each a “Hedging Lender”) is a counterparty, so that such Lender or Affiliate or Hedging Lender, to the extent of such Lender’s or Affiliate’s or Hedging Lender’s credit exposure under such Hedge Agreement, will be entitled to share in the benefits of any Guaranty and the Security Documents to the extent any such Guaranty and Security Documents include obligations under Designated Hedge Agreements in the obligations secured or guaranteed thereby.  For greater certainty, such benefits shall continue after such Hedging Lender has ceased to be a Lender.

(d)    In Section 1.1 entitled “Definitions”, the present definition of “Fee Letter” is deleted and replaced with the following:

“Fee Letter” - the letter dated June 16, 2016 between the Company and the Administrative Agent providing for the payment by the Company of certain arrangement and annual agency fees for the sole account of the Administrative Agent, and a certain fronting fee for the sole account of, and payable directly to, the Issuing Bank.

(e)    In Section 1.1 entitled “Definitions”, the present definition of “Foreign Borrower Sublimit” is deleted and replaced with the following:

“Foreign Borrower Sublimit” means the lesser of the Dollar Equivalent of (a)(i) $100,000,000.00 or (ii) $150,000,000 in connection with a Material Acquisition and (b) the total Unused Commitments.  “In connection with a Material Acquisition” means that the proceeds of such borrowings are used to fund, directly or indirectly, the Consideration for such Material Acquisition or the financial requirements of the Subsidiary or Subsidiaries resulting from such Material Acquisition.  The Foreign Borrower Sublimit is part of, and not in addition to, the Total Commitments.

 
(f)    In Section 1.1 entitled “Definitions”, the present definition of “Guarantors” is deleted and replaced with the following:

“Guarantor” or “Guarantors” - individually or collectively, Broad Reach Engineering Company, a Delaware corporation, Curlin Medical Inc., a Delaware corporation, Moog Europe Holdings I LLC, a New York limited liability company, Moog Europe Holdings II LLC, a New York limited liability company,  X.O. Tec LLC, a Delaware limited liability company, ZEVEX, Inc., a Delaware corporation and any other Subsidiary of Company which is required to deliver to the Administrative Agent a Guaranty hereunder.

(g)    In Section 1.1 entitled “Definitions”, the present definition of “Indebtedness” is amended to add the following provision at the end thereof:  

“; provided, however, that amounts paid as earn outs and similar contingent consideration by the Company under Permitted Acquisitions shall not constitute Indebtedness.”

(h)    In Section 1.1 entitled “Definitions”, the present definition of “Revolving Credit Maturity Date” is deleted and replaced with the following:

“Revolving Credit Maturity Date” - June 28, 2021, which date may be shortened in accordance with Section 8.2 of this Agreement.

(i)    In Section 2.1 entitled “The Revolving Credit” the following provision is added as a new subsection (e) thereof 
“(e)    Existing Indebtedness Assigned.  As of the effective date of Amendment No. 3, there are $700,000,000 of revolving loans outstanding and Existing Letters of Credit with a face amount of $19,813,804.92 outstanding under this Agreement.  Pursuant to an Omnibus Assignment and Assumption Agreement dated as of the date Amendment No. 3, the lenders under the Agreement prior to such Amendment No. 3 have assigned to the Administrative Agent all of the indebtedness under the Agreement effective as of the effective date of Amendment No. 3.  As of the effective date of Amendment No. 3, the Administrative Agent hereby assigns a portion of the Commitment to the Lenders such that, after giving effect to such assignment, the Commitment of each Lender shall be as set forth on Schedule 2.1, and  such indebtedness shall continue as Indebtedness hereunder.  The terms and provisions of Exhibit F are hereby incorporated by reference so that the foregoing assignment shall be subject to the terms and conditions of such Exhibit F.”
(j)     The existing Schedule 2.1 entitled “Lenders’ Commitments” is deleted and replaced with Schedule 2.1 attached hereto.

(k)    Article IV is hereby amended to add the following new Section 4.25 entitled “EEA Financial Institution” to the end thereof to read as follows:

“4.25    EEA Financial Institution.  Neither any Borrower nor any Guarantor is an EEA Financial Institution.”

(l)    In the existing Section 6.2 entitled “Leverage Ratio”, the following provision is added at the end thereof:

“; provided, however, that if the Company is otherwise not in default under the terms of this Agreement, the Company may elect, upon written notice to the Administrative Agent within thirty (30) days after the closing of a Material Acquisition, which election may not be exercised more than two (2) times during the term of this Agreement, to increase the maximum Leverage Ratio to 3.75 to 1.0 during the fiscal quarter in which such Material Acquisition took place and for the next succeeding three (3) fiscal quarters (or, if such Material Acquisition occurs within the last forty-five (45) days of any fiscal quarter, then for the next succeeding four (4) fiscal quarters).”

(m)    The existing Section 6.3 entitled “Consolidated Capital Expenditures”, is deleted in its entirety.

(n)    In the existing Section 7.1 entitled “Indebtedness”, subsection (e) thereof, entitled “Securitization Transactions” is amended to delete the amount “125,000,000.00” contained therein and replace the same with the amount “150,000,000.00”.

(o)    In the existing Section 7.3 entitled “Investments Including Guaranty Obligations”, subsection (d) thereof is deleted and replaced with the following:

“(d)  any Investment made by the Company or any trustee in respect of (i) the Moog Inc. Supplemental Retirement Plan and the Moog Inc. Supplemental Retirement Plan Trust, each as in effect on the date hereof or as may be amended from time to time; (ii) the Moog Inc. Defined Contribution Supplemental Executive Retirement Plan and the associated Moog Inc. Defined Contribution Supplemental Executive Retirement Plan Trust, each as in effect on the date hereof or as may be amended from time to time and (iii) any additional Moog Inc. comparable defined benefit or defined contribution plan, disclosed to the Administrative Agent.”

(p)    In the existing Section 7.3 entitled “Investments Including Guaranty Obligations”, subsection (h) thereof is deleted and replaced with the following: 

“(h)    any other Investments aggregating not more than $100,000,000 made from June 28, 2016 through the Revolving Credit Maturity Date; provided, however, Investments made by the Company or any Subsidiary in a Subsidiary for the sole purpose of funding the Consideration for a Permitted Acquisition, whether in one or more series of related transactions, and the Consideration for any Permitted Acquisition shall not be considered Investments for the purposes of calculating such amount, but rather shall be included in the calculation of the amount of total Consideration for such Permitted Acquisition under Section 7.8(c)(iv) hereof.  In addition, in calculating such Investment basket amount, repayments made by the Moog Inc. Stock Employee Compensation Trust, or any other comparable trust disclosed to the Administrative Agent, of loans payable to the Company shall reduce the outstandings under such Investment basket.”

(q)    In the existing Section 7.4 entitled “Restricted Payments”, subsection (d) thereof is deleted and replaced with the following subsections:

“(d)    The Company or any Subsidiary may declare and pay or make cash dividends with respect to or stock repurchases of its outstanding shares on a pro rata basis, provided that (i) no Default or Event of Default shall have occurred and be continuing or would result therefrom and (ii) before and after giving pro forma effect to each such cash dividend and stock repurchase, the Leverage Ratio does not exceed 2.5 to 1.0; and

(e)    The Company or any Subsidiary may declare and pay or make cash dividends with respect to or stock repurchases of its outstanding shares on a pro rata basis not otherwise permitted pursuant to this Section 7.4 in an aggregate amount not to exceed in any one fiscal year, the Annual Permitted Distribution Amount for the immediately preceding fiscal year, provided that no Default or Event of Default shall have occurred and be continuing or would result therefrom.”

(r)    In the existing Section 7.6 entitled “Material Indebtedness Agreements”, subsection (b) thereof entitled “Prepayment and Refinancing of Other Debt, etc.” is amended so that the provision under subheading (iv) thereof is deleted and replaced with the following:  

“(iv)  pay or prepay the Indebtedness under any Senior Unsecured Notes, provided that before and after any such payment or prepayment, the Borrowers have at least $200,000,000 available to borrow under the Revolving Credit.”

(s)    In the existing Section 7.8 entitled “Consolidation, Merger, Acquisitions, Asset Sales, etc.”, subsection (b) thereof entitled “Other Depositions” is amended so that the provision under subheading (A) thereof is deleted in its entirety and replaced with the following:

“(A)    the Consideration for each Asset Sale represents fair value, and for Asset Sales with total Consideration of $25,000,000 or more, any non cash consideration does not exceed 25% of the total Consideration for such Asset Sale;”

(t)    In the existing Section 7.8 entitled “Consolidation, Merger, Acquisitions, Asset Sales, etc.” subsection (c) thereof entitled “Permitted Acquisitions” is amended such that:

(1)    the clause that commences at the beginning of such subsection and ends immediately prior to subsection (i) thereof is deleted in its entirety and replaced with the following:

“Any acquisition by Company or any Subsidiary of all or substantially all or the assets, or assets constituting all of substantially all of a division or product line of any other Person, or of Equity Interests of any other Person that becomes a Subsidiary as a result thereof, so long as”

(2)    subsection (iv) thereof is deleted in its entirety; and

(3)    the last sentence thereof is deleted in its entirety.

(u)    In the existing Section 10.1 entitled “Appointment and Authorization” the following provision is added as a new subsection (c) thereof:

“(c)    (i)    Subject to the terms of this Agreement, the Administrative Agent agrees to administer and enforce this Agreement and the other Security Documents to which it is a party and to foreclose upon, collect and dispose of the Collateral and to apply the proceeds therefrom, for the benefit of the Secured Facilities Parties, as provided in this Agreement, and otherwise to perform its duties and obligations as the representative of the Secured Facilities Parties thereunder in accordance with the terms hereof; provided, however, that the Administrative Agent shall have no duties or responsibilities except those expressly set forth in the Security Documents to which it is a party as Administrative Agent, and no implied covenants or obligations shall be read into any such Security Documents against the Administrative Agent, and its duties thereunder shall be administrative in nature only, whether or not a default has occurred and is continuing.

(ii)    The Administrative Agent shall not be responsible to the other Secured Facilities Parties for (A) the performance or observance by the Borrower or any of the Secured Facilities Parties (other than as to itself) of any of their respective agreements contained herein or therein, nor shall the Administrative Agent be liable because of the invalidity or unenforceability of any provisions of this Agreement (other than as to itself) or (B) the validity, perfection, priority or enforceability of the Liens in any of the Collateral, whether impaired by operation of law or by reason of any action or omission to act on its part hereunder (except to the extent such action or omission constitutes gross negligence, or willful misconduct on the part of the Administrative Agent), the validity of the title to the Collateral, insuring the Collateral or the payment of taxes, charges, assessments or Liens upon the Collateral or otherwise as to the maintenance of the Collateral.  Neither the Administrative Agent nor any of its directors, officers, employees or agents shall be liable or responsible for any action taken or omitted to be taken by it or them hereunder or in connection herewith, except for its or their own gross negligence or willful misconduct.
(iii)     In the event that the Administrative Agent is required to acquire title to an asset for any reason, or take any managerial action of any kind in regard thereto, in order to carry out any obligation for the benefit of another, which in the  Administrative Agent’s sole discretion may cause the Administrative Agent to be considered an “owner or operator” under the provisions of the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C. §9601, et seq., or otherwise cause the Administrative Agent to incur liability under CERCLA or any other federal, state or local law, the Administrative Agent reserves the right, instead of taking such action, to either resign as the Administrative Agent or arrange for the transfer of the title or control of the asset to a court-appointed receiver. Except for such claims or actions arising directly from the gross negligence or willful misconduct of the Administrative Agent, the Administrative Agent shall not be liable to any person or entity for any environmental claims or contribution actions under any federal, state or local law, rule or regulation by reason of the Administrative Agent’s actions and conduct as authorized, empowered and directed hereunder or relating to 

the discharge, release or threatened release of hazardous materials into the environment. If at any time after any foreclosure on the Collateral (or a transfer in lieu of foreclosure) upon the exercise of remedies in accordance with the Security Documents it is necessary or advisable to take possession, own, operate or manage any portion of the Collateral by any person or entity other than the Borrower, the Administrative Agent shall appoint an appropriately qualified Person to possess, own, operate or manage such Collateral.

(iv)    The powers conferred on the Administrative Agent under this Agreement and related Security Documents are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody and preservation of the Collateral in its possession and the accounting for monies actually received by it, the Administrative Agent shall have no other duty as to the Collateral, whether or not the Administrative Agent or any of the other Lenders or Issuing Banks has or is deemed to have knowledge of any matters, or as to the taking of any necessary steps to preserve rights against any parties or any other rights pertaining to the Collateral. The Administrative Agent hereby agrees to exercise reasonable care in respect of the custody and preservation of the Collateral. The Administrative Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if such Collateral is accorded treatment substantially equal to that which the Administrative Agent accords its own property.”

(v)    In the existing Section 10.9 entitled “Action by Administrative Agent”, the following provision is added at the end of subsection (a) thereof:

“The Administrative Agent shall not have any duty to take any discretionary action or exercise any discretionary power under this Agreement or the Security Documents, except discretionary rights and powers expressly contemplated by this Agreement or the Security Documents that the Administrative Agent is required to exercise and only so long as so directed in writing to take such discretionary action by the “Required Lenders” provided, however, that the Administrative Agent shall not be required to take any action that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to liability or that is contrary to any Loan Document or Applicable Law, including, for the avoidance of doubt, any action that may be in violation of the automatic stay or that may effect a forfeiture, modification or termination of a property interest in violation of any applicable bankruptcy/ insolvency laws and the Administrative Agent shall in all cases be fully justified in failing or refusing to act under the Agreement or any other Loan Document unless it first receives further assurances of its indemnification from the Lenders that the Administrative Agent reasonably believes it may require, including prepayment of any related expenses and any other protection it requires against any and all costs, expenses and liabilities it may incur in taking or continuing to take any such discretionary action at the direction of the Required Lenders. In no event shall the Administrative Agent be required to expend or risk any of its 

own funds or otherwise incur any liability, financial or otherwise, in the performance of its duties under the Loan Documents or in the exercise of any of its rights or powers under this Agreement.” 

(w)    In the existing Section 10.14 entitled “Amendments, Consents” the following provision is added at the end of subsection (e) thereof:

“without the written consent of each Lender”

(x)    In the existing Section 10.18 entitled “Tax Withholding Clause”, the following provision is added as a new subsection (e) thereof:

“(e)    For purposes of determining withholding Taxes imposed under FATCA, from and after the effective date of Amendment No. 3, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) this Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).”

(y)    In the existing Section 10.20 entitled “Other Agents”, the following provision is added at the end thereof:

“The obligations of the Administrative Agent and Lenders under this Agreement or any other Loan Documents are several and not joint. Failure by any one Lender to perform its obligations does not affect the obligations (or liability) of Administrative Agent or any other Lender thereunder.”

(z)    In the existing Section 11.12 entitled “Notifications”, the following provision is added at the end of subsection (b) thereof entitled “Flood Notification”:

“Without limiting the foregoing, each of the Mortgages delivered to Administrative Agent contains a covenant for the mortgagor thereunder to provide flood insurance if the mortgaged premises or any portion thereof are located in an area identified by the Secretary of Housing and Urban Development as an area having special flood hazards and in which flood insurance has been made available under the National Flood Insurance Act, and prior to accepting any future mortgage on additional real property, the Administrative Agent will give the Lenders at least 45 days prior notice of such, so that the Lenders may conduct flood insurance due diligence with respect thereto, and Administrative Agent will coordinate with the Company to deliver to Lender any additional information needed for such Lender’s flood due diligence.”

(aa)    The Agreement is amended to add the following provision as a new Section 11.20:

“11.20  Contractual Recognition of Bail-In - Notwithstanding any other term of any Loan Document or any other agreement, arrangement or understanding between any party to this Agreement (each a “Party”), each Party acknowledges and accepts that any liability of any Party that is an EEA Financial Institution to any other Party under or in connection with the Loan Documents may be subject to Bail-In Action by the relevant Resolution Authority and acknowledges and accepts to be bound by the effect of:

(a)    any Bail-In Action in relation to any such liability, including (without limitation):

		
	(i)
	a reduction, in full or in part, in the principal amount, or outstanding amount due (including any accrued but unpaid interest) in respect to any such liability;

		
	(ii)
	a conversion of all, or part of, any such liability into shares or other instruments of ownership that may be issued to, or conferred on, it; and

		
	(iii)
	a cancellation of any such liability; and

(b)    a variation of any term of any Loan Document to the extent necessary to give effect to any Bail-In Action in relation to any such liability.”

(bb)    The existing Schedule 4.1 entitled “Subsidiaries” is deleted in its entirety and replaced with Schedule 4.1 attached hereto.

(cc)    The existing Schedule 7.1 entitled “Permitted Indebtedness” is deleted in its entirety and replaced with Schedule 7.1 attached hereto.

(dd)    The existing Schedule 7.2 entitled “Permitted Encumbrances” is deleted in its entirety and replaced with Schedule 7.2 attached hereto.

(ee)    The existing Schedule 7.3 entitled “Permitted Investments and Guarantees” is deleted in its entirety and replaced with Schedule. 7.3 attached hereto.

3.    Reaffirmations.

3.1    Reaffirmation Agreements.  In connection herewith, the Company and the Negative Pledgors thereunder are executing and delivering a reaffirmation of the Loan Documents to which they are a party and an amendment of the Amended and Restated General Security Agreement dated as of March 18, 2011, as previously amended, in favor of Administrative Agent (the “Reaffirmation”) and the Guarantors are executing and delivering a reaffirmation of the Loan Documents to which they are a party and amendment of the Amendment and Restated General Security Agreement dated as of March 18, 2011, as previously amended and supplemented in favor of Administrative Agent (the “Guarantor Reaffirmation”).  Without limiting the foregoing, by their signatures hereto, each Guarantor hereby reaffirms, ratifies and confirms the execution and delivery and all of the terms and provisions of, as applicable, the Loan Documents to which it is a party, and agrees that such Loan Documents remain in full force and effect, are the legal, valid and binding obligations of such Guarantor and that any guaranty contained therein extends to, and guaranties any and all Indebtedness under the Agreement, as modified from time to time, including as modified hereby and that “Loan Agreement” as used therein means the Agreement, as modified hereby and as the same may hereafter be amended, supplemented, extended, renewed, restated, replaced or otherwise modified from time to time.

4.    Limitation on Modifications.  The foregoing modifications are only applicable and shall only be effective in the specific instance and for the specific purpose for which made, are expressly limited to the facts and circumstances referred to herein, and shall not operate as (i) a waiver of, or 

consent to non-compliance with any other provision of the Agreement or any other Loan Document, (ii) a waiver or modification of any right, power or remedy of either the Administrative Agent or any Lender under the Agreement or any Loan Document, or (iii) a waiver or modification of, or consent to, any Event of Default or Default under the Agreement or any Loan Document.

5.    Conditions Precedent.  The effectiveness of each and all of the modifications contained in this Amendment is subject to the satisfaction, in form and substance satisfactory to the Administrative Agent, of each of the following conditions precedent:

5.1    Amendment Documentation.  The Administrative Agent shall have received:  (a) the original Omnibus Assignment and Acceptance from each of the lenders under the existing Agreement, together with each such lender’s  existing Note endorsed to the Administrative Agent (b) sixteen (16) originals of this Amendment executed by all parties hereto; (c) an original replacement revolving note and an original replacement alternative currency note in favor of each of the Lenders; (d) sixteen (16) originals of each of the Reaffirmation and the Guarantor Reaffirmation; and (e) originals of an opinion of counsel to the Borrowers.

5.2    No Default.  As of the effective date of this Amendment, no Default or Event of Default shall have occurred and be continuing.

5.3    Representations and Warranties.  The representation and warranties contained in Section 6 hereof and in the Agreement shall be true correct and complete as of the effective date of this Amendment as though made on such date, unless they specifically speak as of another date.

5.4    Other.  The Administrative Agent shall have received such other approvals or documents as any Lender through the Administrative Agent may reasonably request, including searches, corporate status reports and consents and all legal matters incident to the foregoing shall be satisfactory to the Administrative Agent and its counsel.

6.    Representations and Warranties of Company.  The Company hereby represents and warrants as follows:

6.1    Each of the representations and warranties set forth in the Agreement is true, correct, and complete on and as of the date hereof as though made on the date hereof, unless they specifically speak as of another date, and the Agreement, as modified by this Amendment, and each of the other Loan Documents remains in full force and effect.

6.2    As of the date hereof, there exists and will exist no Default or Event of Default under the Agreement or any other Loan Document, and no event which, with the giving of notice or lapse of time, or both, would constitute a Default or Event of Default.

6.3    The execution, delivery and performance by the Company of this Amendment is within the Company’s corporate powers, have been duly authorized by all necessary corporate action, and do not, and will not, (i) contravene the Company’s certificate of incorporation or by-laws, (ii) violate any law, including without limitation the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, or any rule, regulation (including Regulations T, U or X of the Board of Governors of the Federal Reserve System) order, writ, judgment, injunction, decree, determination or award, and (iii) conflict with or result in the breach of, or constitute a default under, any material contract, loan agreement, mortgage, deed of trust or any other material instrument or agreement binding on the 

Company or any Subsidiary or any of their properties or result in or require the creation or imposition of any lien upon or with respect to any of their properties.

6.4    This Amendment has been duly executed and delivered by the Company and the Guarantors and is the legal, valid and binding obligation of each of them, enforceable against the Company and each of the Guarantors in accordance with its terms.

6.5    No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or any other third party is required for (i) the due execution, delivery or performance by the Company and the Guarantors of this Amendment or any other agreement or document related hereto or contemplated hereby to which the Company or any of the Guarantors is or is to be a party or otherwise bound, or (ii) the exercise by the Administrative Agent or any Lender of its rights under the Agreement as modified by this Amendment.

7.    Other.

7.1    The Company agrees to pay all out-of-pocket expenses of the Administrative Agent in connection with the negotiation, preparation and execution of this Amendment including the reasonable fees and disbursements of counsel to the Administrative Agent.

7.2    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.

7.3    This Amendment shall be governed by and construed under the internal laws of the State of New York, as the same may be from time to time in effect, without regard to principles of conflicts of laws.

[Signature Pages Follow]

Doc #02-465677.7

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

HSBC BANK USA, NATIONAL
ASSOCIATION, as Administrative Agent    

By: /s/ Ecliff Jackman
Name:    Ecliff Jackman
Title: Vice President    

Signature Page to Amendment No. 3 to Moog Fourth Amended and Restated Loan Agreement

HSBC BANK USA, NATIONAL 
ASSOCIATION, as a Lender

By: /s/ Gregory R. Duval
Name:    Gregory R. Duval
Title:    Senior Vice President

Signature Page to Amendment No. 3 to Moog Fourth Amended and Restated Loan Agreement

Manufacturers and Traders Trust Company, as a Lender

By: /s/ Mark E. Hoffman
Name:    Mark E. Hoffman
Title:    Vice President

Signature Page to Amendment No. 3 to Moog Fourth Amended and Restated Loan Agreement

Bank of America, N.A., as a Lender

By: /s/ Thomas C. Strasenburgh
Name:    Thomas C. Strasenburgh
Title:    Senior Vice President

Signature Page to Amendment No. 3 to Moog Fourth Amended and Restated Loan Agreement

JPMorgan Chase Bank, N.A.,
as a Lender

By: /s/ Karen L. Mikols
Name:    Karen L. Mikols
Title:    Vice President

Signature Page to Amendment No. 3 to Moog Fourth Amended and Restated Loan Agreement

CITIZENS BANK OF PENNSYLVANIA,
as a Lender

By: /s/ Ed Kloecker
Name:  Ed Kloecker
Title:    Senior Vice President

Signature Page to Amendment No. 3 to Moog Fourth Amended and Restated Loan Agreement

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., as a Lender

By: /s/ Maria Iarriccio
Name: Maria Iarriccio
Title:       Director

Signature Page to Amendment No. 3 to Moog Fourth Amended and Restated Loan Agreement

WELLS FARGO BANK, N.A., as a Lender

By: /s/ Thomas J. Grys

Name: Thomas J. Grys
Title:   Senior Vice President

Signature Page to Amendment No. 3 to Moog Fourth Amended and Restated Loan Agreement

PNC BANK, NATIONAL ASSOCIATION,
as a Lender

By: /s/ Nathan Walvoord
Name:  Nathan Walvoord
Title:    Assistant Vice President

Signature Page to Amendment No. 3 to Moog Fourth Amended and Restated Loan Agreement

NORTHERN TRUST, as a Lender

By: /s/ Sophia Love
Name:    Sophia Love
Title:    Senior Vice President

Signature Page to Amendment No. 3 to Moog Fourth Amended and Restated Loan Agreement

FIRST NIAGARA BANK, N.A., as a Lender

By: /s/ David S. DePasquale
Name:    David S. DePasquale
Title: Vice President    

Signature Page to Amendment No. 3 to Moog Fourth Amended and Restated Loan Agreement

U.S. BANK NATIONAL ASSOCIATION,
as a Lender

By: /s/ Michael E. Temnick
Name:    Michael E. Temnick
Title:    Vice President

Signature Page to Amendment No. 3 to Moog Fourth Amended and Restated Loan Agreement

BRANCH BANKING AND TRUST COMPANY
as a Lender 

By: /s/ Matthew J. Davis
Name:    Matthew J. Davis
Title:    Senior Vice President

Signature Page to Amendment No. 3 to Moog Fourth Amended and Restated Loan Agreement

SANTANDER BANK, N.A., as a Lender

By: /s/ Cristian Anghel
Name:    Cristian Anghel
Title:    Vice President

Signature Page to Amendment No. 3 to Moog Fourth Amended and Restated Loan Agreement

MOOG INC., as the Company

By: /s/ Timothy P. Balkin
Name:    Timothy P. Balkin
Title:    Treasurer

Each of the following as Guarantors:

BROAD REACH ENGINEERING COMPANY
CURLIN MEDICAL INC.
MOOG EUROPE HOLDINGS I LLC
MOOG EUROPE HOLDINGS II LLC
X.O. TEC LLC
ZEVEX, INC.

By: /s/ Timothy P. Balkin
Name:    Timothy P. Balkin
Title:    Treasurer

Signature Page to Amendment No. 3 to Moog Fourth Amended and Restated Loan Agreement

SCHEDULE 2.1

LENDERS’ COMMITMENTS 

	
			
	Lender
	Commitment
	Applicable
Percentage

	 
	 
	 

	HSBC Bank USA, National Association
	$135,000,000.00
	12.2727272727%

	Manufacturers and Traders Trust Company
	$135,000,000.00
	12.2727272727%

	Bank of America, N.A.
	$130,000,000.00
	11.8181818181%

	JPMorgan Chase Bank, N.A.
	$130,000,000.00
	11.8181818181%

	Citizens Bank of Pennsylvania
	$125,000,000.00
	11.3636363636%

	Wells Fargo Bank, N.A.
	$125,000,000.00
	11.3636363636%

	The Bank of Tokyo-Mitsubishi UFJ, Ltd.
	$72,500,000.00
	6.5909090909%

	PNC Bank, National Association
	$72,500,000.00
	6.5909090909%

	U.S. Bank National Association
	$35,000,000.00
	3.18181818181%

	Northern Trust
	$35,000,000.00
	3.18181818181%

	First Niagara Bank, N.A.
	$35,000,000.00
	3.18181818181%

	Branch Banking and Trust Company
	$35,000,000.00
	3.18181818181%

	Santander Bank, N.A.
	$35,000,000.00
	3.18181818181%

	TOTAL
	$1,100,000,000.00
	100.0%

	
			
	Lender
	

Amount of Alternative
Currency Sublimit
	Applicable
Percentage

	 
	 
	 

	HSBC Bank USA, National Association
	$18,409,090.90
	12.2727272727%

	Manufacturers and Traders Trust Company
	$18,409,090.91
	12.2727272727%

	Bank of America, N.A.
	$17,727,272.73
	11.8181818181%

	JPMorgan Chase Bank, N.A.
	$17,727,272.73
	11.8181818181%

	Citizens Bank of Pennsylvania
	$17,045,454.55
	11.3636363636%

	Wells Fargo Bank, N.A.
	$17,045,454.55
	11.3636363636%

	The Bank of Tokyo-Mitsubishi UFJ, Ltd.
	$9,886,363.64
	6.5909090909%

	PNC Bank, National Association
	$9,886,363.64
	6.5909090909%

	U.S. Bank National Association
	$4,772,727.27
	3.18181818181%

	Northern Trust
	$4,772,727.27
	3.18181818181%

	First Niagara Bank, N.A.
	$4,772,727.27
	3.18181818181%

	Branch Banking and Trust Company
	$4,772,727.27
	3.18181818181%

	Santander Bank, N.A.
	$4,772,727.27
	3.18181818181%

	TOTAL
	$150,000,000.00
	100.0%

Applicable Lending Offices:

	
			
	Lender
	Domestic Lending Office
	Libor Lending Office

	HSBC Bank USA, National
 Association
	95 Washington Street
Buffalo, NY 14273
	95 Washington Street
Buffalo, NY 14273

	Manufacturers and Traders
 Trust Company
	One Fountain Plaza
12th Floor
Buffalo, NY  14203
	One Fountain Plaza
12th Floor
Buffalo, NY  14203

	Bank of America, N.A.
	70 Batterson Park Road
Farmington, CT  06032
	70 Batterson Park Road
Farmington, CT  06032

	JPMorgan Chase Bank, N.A.
	10 South Dearborn
Floor 07
Chicago, IL  60603-2003
	10 South Dearborn
Floor 07
Chicago, IL  60603-2003

	Citizens Bank of Pennsylvania
	525 William Penn Place
Room 153-2440
Pittsburgh, PA  15219
	100 Sockanosett Crossroads
Cranston, RI  02920

	The Bank of Tokyo-
 Mitsubishi UFJ, Ltd.
	1251 Avenue of the Americas
12th Floor
New York, NY  10020
	1251 Avenue of the Americas
12th Floor
New York, NY  10022

	Wells Fargo Bank, N.A.
	7711 Plantation Road
Roanoke, VA  24019
	7711 Plantation Road
Roanoke, VA  24019

	PNC Bank, National
 Association
	Two Tower Center Boulevard
21st Floor
East Brunswick, NJ  08816
	Two Tower Center Boulevard
21st Floor
East Brunswick, NJ  08816

	Northern Trust
	50 S. LaSalle
Chicago, IL  60675
	50 S. LaSalle
Chicago, IL  60675

	First Niagara Bank, N.A.
	726 Exchange Street
Suite 900
Buffalo, NY  14210
	726 Exchange Street
Suite 900
Buffalo, NY  14210

	U.S. Bank National Association
	800 Nicolle Mall
Minneapolis, MN  55402
	800 Nicolle Mall
Minneapolis, MN  55402

	Branch Banking and Trust Company
	8200 Greensboro Dr., Suite 1000
McLean Virginia 22102
	8200 Greensboro Dr., Suite 1000
McLean Virginia 22102

	Santander Bank, N.A.
	601 Penn Street
Reading, PA  19601
	601 Penn Street
Reading, PA  19601

SCHEDULE 4.1

SUBSIDIARIES

		
	(i)
	Moog Components Group GmbH, incorporated in Germany, wholly-owned subsidiary1 

		
	(ii)
	Bradford Engineering B.V., incorporated in the Netherlands, wholly-owned subsidiary

		
	(iii)
	Broad Reach Engineering Company, incorporated in Delaware, wholly-owned subsidiary

		
	(a)
	Octant Technologies, Inc., incorporated in California, wholly-owned subsidiary of Broad Reach Engineering Company

		
	(iv)
	Curlin Medical Inc. (“Curlin”), incorporated in Delaware, wholly-owned subsidiary 

		
	(a)
	Moog MDG SRL, incorporated in Costa Rica, wholly-owned subsidiary of Curlin 

		
	(b)
	Viltechmeda UAB, incorporated in Lithuania, wholly-owned subsidiary of Curlin 

		
	(c)
	ZEVEX, Inc., incorporated in Delaware, wholly-owned subsidiary of Curlin 

		
	(v)
	Intentionally deleted

		
	(vi)
	Harmonic Linear Drives Ltd., incorporated in England and Wales, 75% owned by Moog Inc. [inactive]

(vii)    Ingenieurburo Pieper GmbH, incorporated in Germany, wholly-owned subsidiary

		
	(viii)
	Moog Asset Management LLC, organized in Delaware, wholly-owned subsidiary

(ix)    Moog Australia Pty. Ltd., incorporated in Australia, wholly-owned subsidiary

(x)    Moog do Brasil Controles Ltda., incorporated in Brazil, wholly-owned subsidiary

		
	(a)
	 Intentionally deleted

		
	(xi)
	Moog Controls Corporation, incorporated in Ohio, wholly-owned subsidiary with branch operation in the Republic of the Philippines, and Moog Controls Corporation, incorporated in New York [inactive], both wholly-owned subsidiaries

		
	(xii)
	Moog Controls Hong Kong Ltd., incorporated in Hong Kong, wholly-owned subsidiary

		
	(a)
	Moog Industrial Controls (Shanghai) Co., Ltd., incorporated in Peoples Republic of China, wholly-owned subsidiary of Moog Controls Hong Kong Ltd.

		
	(b)
	Moog Control Systems (Shanghai) Co., Ltd., incorporated in Peoples Republic of China, wholly-owned subsidiary of Moog Controls Hong Kong Ltd.

		
	(xiii)
	Moog Controls (India) Private Ltd., incorporated in India, wholly-owned subsidiary

1 Animatics GmbH changed name to Moog Components Group GmbH effective June 7, 2016.

(xiv)    Moog Controls Ltd., incorporated in the United Kingdom, wholly-owned subsidiary

		
	(a)
	Intentionally deleted

		
	(b)
	Intentionally deleted

		
	(1)
	Moog Fernau Ltd., incorporated in the United Kingdom, wholly owned subsidiary of Moog Controls Ltd.

		
	(b)
	Moog Components Group Limited, incorporated in the United Kingdom, wholly-owned subsidiary of Moog Controls Ltd. 

		
	(1)
	Tritech Holdings Limited, incorporated in the United Kingdom, wholly-owned subsidiary of Moog Components Group Limited

		
	(1.a)
	Tritech International Limited, incorporated in the United Kingdom, wholly-owned subsidiary of Tritech Holdings Limited

		
	(1.a.i)
	Tritech do Brasil-Servicos E Equipamentos Submarinos Ltda, incorporated in Brazil, 99% owned by Tritech International Limited

		
	(c)
	Moog Norden A.B., incorporated in Sweden, wholly-owned subsidiary of Moog Controls Ltd.

		
	(d)
	Moog OY, incorporated in Finland, wholly-owned subsidiary of Moog Controls Ltd.

		
	(e)
	Moog Wolverhampton Limited, incorporated in the United Kingdom, wholly-owned subsidiary of Moog Controls Ltd.

		
	(xv)
	Moog Europe Holdings I LLC, a New York limited liability company, wholly-owned subsidiary

		
	(xvi)
	Moog Europe Holdings II LLC, a New York limited liability company, wholly-owned subsidiary

		
	(xvii)
	Moog Europe Holdings Luxembourg SCS (“Moog SCS”), incorporated in Luxembourg, owned by Moog Europe Holdings I LLC and Moog Europe Holdings II LLC

		
	(a)
	Moog Holding GmbH & Co. KG (“Moog KG”), a partnership organized in Germany, wholly-owned subsidiary of Moog SCS

		
	(1)
	Insensys Holdings Ltd., incorporated in the United Kingdom, wholly-owned subsidiary of Moog KG

(1.a)    Moog Insensys Limited, incorporated in the United     Kingdom, wholly-owned subsidiary of Insensys Holdings Ltd.

		
	(2)
	Moog Unna GmbH, incorporated in Germany, wholly-owned subsidiary of Moog KG

(2.a)    Moog Control Equipment (Shanghai) Co. Ltd., incorporated in People’s Republic of China, wholly-owned     subsidiary of Moog Unna GmbH

		
	(3)
	Moog BV, incorporated in the Netherlands, wholly-owned subsidiary of Moog KG

		
	(4)
	Moog GmbH, incorporated in Germany, wholly-owned subsidiary of Moog KG

		
	(4.a)
	Moog Italiana S.r.l., incorporated in Italy, wholly-owned subsidiary of Moog GmbH

		
	(5)
	Moog Luxembourg S.a.r.l., incorporated in Luxembourg, wholly-owned subsidiary of Moog KG

		
	(6)
	Obshestwo s Ogranizennoi Otwetstwennostju Moog, incorporated in Russia, wholly-owned subsidiary of Moog KG

		
	(7)
	Intentionally deleted

		
	(b)
	Moog Luxembourg Finance S.A.R.L. (“Moog Finance”), incorporated in Luxembourg, wholly-owned subsidiary of Moog SCS with branch operations in Switzerland

		
	(1)
	Moog International Financial Services Center s.a.r.l, incorporated in Luxembourg, wholly-owned subsidiary of Moog Finance with branch operations in the Republic of the Philippines

		
	(c)
	Focal Technologies Corporation, incorporated in Nova Scotia, Canada, wholly-owned subsidiary of Moog SCS

		
	(d)
	Moog Verwaltungs GmbH, incorporated in Germany, wholly-owned subsidiary of Moog SCS

(xviii)    Moog Holdings Limited, incorporated in Ireland, wholly-owned subsidiary

		
	(a)
	Moog Dublin Ltd., incorporated in Ireland, a wholly-owned subsidiary of Moog Holdings Limited

		
	(b)
	Moog UK Cheltenham Ltd., incorporated in the United Kingdom, a wholly-owned subsidiary of Moog Holdings Limited

(xix)    Moog Ireland Ltd, incorporated in Ireland, wholly-owned subsidiary

(xx)    Moog Japan Ltd., incorporated in Japan, wholly-owned subsidiary

(xxi)    Moog Korea Ltd., incorporated in South Korea, wholly-owned subsidiary

		
	(xxii)
	Moog Receivables LLC, a Delaware limited liability company, wholly-owned subsidiary

		
	(xxiii)
	Moog S.a.r.l., incorporated in France, wholly-owned subsidiary, 95% owned by Moog Inc.; 5% owned by Moog GmbH, with branch operations in Spain

(xxiv)    Moog Singapore Pte. Ltd., incorporated in Singapore, wholly-owned subsidiary

		
	(a)
	Moog Motion Controls Private Limited, incorporated in India, wholly-owned subsidiary of Moog Singapore Pte. Ltd.

		
	(b)
	Moog India Technology Center Pvt Ltd., incorporated in India, wholly-owned subsidiary of Moog Singapore Pte. Ltd.

		
	(xxv)
	Moog UK Wescott Limited, incorporated in the United Kingdom, wholly-owned subsidiary

		
	(xxvi)
	X.O. Tec LLC, organized in Delaware, wholly-owned subsidiary

		
	(xxvii)
	Linear AMS, Inc., organized in Michigan, 75% owned by Moog Inc.

SCHEDULE 7.1

PERMITTED INDEBTEDNESS
(Note - Numbers Represent 05/31/16 Balances)2 

		
	1.
	Existing loan advances from Borrower to Foreign Subsidiaries ($ equivalent)

	
		
	Location
	Loan Advance

	 - Moog Controls Corporation (Philippines)
	$       159,212,996

	 - Bradford Engineering B.V.
	$           7,945,501

	 - Moog UK Westcott Ltd.
	$           3,300,649

		
	2.
	Existing obligations related to building/equipment financing ($ equivalent)

	
			
	Location
	Type
	Outstanding

	 - Linear Mold and Engineering
	Machinery
	   $             403,645

	 - Linear Mold and Engineering
	Machinery
	   $               14,000

	 - Linear Mold and Engineering
	Machinery
	   $               42,000

		
	3.
	Existing bank facilities other than with the Lenders

	
				
	Location
	Type of Debt
	Available Facilities
	Outstanding

	 - Moog IFSC Ltd
	 
	$            11,191,000
	$                         -

	 - Moog GmbH
	Overdraft
	$              5,371,680
	$                         -

	 - Moog Italiana S.r.l.
	Overdraft
	$                   55,955
	$                         -

	 - Moog Casella
	Overdraft
	$                   55,955
	$                         -

	 - Moog S.A.R.L. (France)
	Overdraft
	$                 447,640
	$                         -

	 - Moog Japan Ltd
	 
	$                 910,996
	$               91,100

	 - Moog Japan Ltd
	Overdraft
	$                 910,996
	$                         -

	 - Moog AG (Ireland)
	Overdraft
	$                 354,755
	$                         -

	 
	 
	 
	 

		
	4.
	Notes to Seller re: purchase price holdback

	
		
	 - Linear Mold and Engineering
	$          1,280,000

		
	5.
	Certain Foreign Subsidiaries discount customers’ promissory notes with various banks from time to time.  The terms of such agreements provide that the Foreign Subsidiary guarantee the promissory notes.

2 Also permitted by Section 7.1(c)

SCHEDULE 7.2

PERMITTED ENCUMBRANCES
(Note - Numbers Represent 05/31/16 Balances)

	
			
	Liens
	Type
	Amount

	Moog Italiana S.r.l.
	Various
	$       12,257

	Moog Luxembourg S.A.R.L.
	Machinery
	$       65,720

	 
	 
	 

	Liens on assets of Foreign Subsidiaries securing various bank facilities
	See item 3 on Sch. 7.1

SCHEDULE 7.3

PERMITTED INVESTMENTS AND GUARANTEES
(Note - Numbers Represent 05/31/16 Balances excluding any reserves)

	
		
	 1. First Wave Technologies, Inc.
	$                     300,000

	 2. Pill Crusher
	$                       50,004              

	 3. SimEx, Inc.
	$                                -

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