SEC Contract Filing

Filing Date: 2015-03-31

Document Content:
<DOCUMENT>
<TYPE>EX-10.2.1
<SEQUENCE>5
<FILENAME>ex10-21.htm
<DESCRIPTION>EXHIBIT 10.2.1
<TEXT>
<HTML><HEAD><TITLE>sypr20141231_10k.htm</TITLE>
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<P id=PARA411 style="MARGIN-BOTTOM: 0px; TEXT-ALIGN: right; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>Exhibit 10.2.1</B></FONT></P>
<P id=PARA412 style="MARGIN-BOTTOM: 0px; TEXT-ALIGN: left; MARGIN-TOP: 0px"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P></FONT>
<P id=PARA410 style="MARGIN-BOTTOM: 0pt; MARGIN-TOP: 0pt">&nbsp;</P>
<P id=PARA1 style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">THIS INSTRUMENT, AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY, ARE SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN SUBORDINATION AGREEMENT DATED MARCH 12, 2015 BETWEEN PNC BANK, NATIONAL ASSOCIATION, AS AGENT, AND GILL FAMILY CAPITAL MANAGEMENT, INC., AND CONSENTED TO BY THE BORROWERS DEFINED THEREIN.</FONT></P>
<P id=PARA2 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA3 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA4 style="TEXT-ALIGN: center; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B><U>SECURITY AGREEMENT</U></B></FONT></P>
<P id=PARA5 style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA6 style="MARGIN-BOTTOM: 0px; TEXT-ALIGN: justify; MARGIN-TOP: 0px; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><B>THIS SECURITY AGREEMENT</B> (the &#8220;<U>Security Agreement</U>&#8221;) is made and entered into as of the 12<SUP style="vertical-align: baseline; position: relative; bottom:.33em;">th</SUP> day of March, 2015, by and between (i) <FONT style="TEXT-TRANSFORM: uppercase"><B>Sypris Solutions, Inc.</B></FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">, a Delaware corporation (&#8220;<U>Solutions</U>&#8221;), <FONT style="TEXT-TRANSFORM: uppercase"><B>Sypris Technologies, Inc.</B></FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">, a Delaware corporation, <FONT style="TEXT-TRANSFORM: uppercase"><B>Sypris Electronics, LLC</B></FONT><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">, a Delaware limited liability company, <B>SYPRIS DATA SYSTEMS, INC.</B>, a Delaware corporation, <B>SYPRIS TECHNOLOGIES MARION, LLC</B>, a Delaware limited liability company, <B>SYPRIS TECHNOLOGIES KENTON, INC.</B>, a Delaware corporation, <B>SYPRIS TECHNOLOGIES MEXICAN HOLDINGS, LLC</B>, a Delaware limited liability company, <B>SYPRIS TECHNOLOGIES NORTHERN, INC.</B>, a Delaware corporation, <B>SYPRIS TECHNOLOGIES SOUTHERN, INC</B><B>.</B>, a Delaware corporation, and <B>SYPRIS TECHNOLOGIES INTERNATIONAL, INC.</B>, a Delaware corporation, (each a &#8220;<U>Borrower</U>&#8221; and collectively the &#8220;<U>Borrowers</U>&#8221;), and (ii) <B>GILL FAMILY CAPITAL MANAGEMENT, INC., </B>a Delaware corporation (the &#8220;<U>Lender</U>&#8221;).</FONT></FONT></FONT></FONT></P>
<P id=PARA7 style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA8 style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA9 style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif"><U>P</U> <U>R</U> <U>E</U> <U>L</U> <U>I</U> <U>M</U> <U>I</U> <U>N</U> <U>A</U> <U>R</U> <U>Y</U>&nbsp;&nbsp;&nbsp;<U>S</U> <U>T</U> <U>A</U> <U>T</U> <U>E</U> <U>M</U> <U>E</U> <U>N</U> <U>T</U>:</FONT></P>
<P id=PARA10 style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA11 style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">A.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Lender has made available to the Borrowers a loan in the principal sum of Four Million Dollars ($4,000,000.00) (the &#8220;<U>Loan</U>&#8221;).</FONT></P>
<P id=PARA12 style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA13 style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">B.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Loan is evidenced by that certain Promissory Note of even date herewith, jointly and severally made by the Borrowers, payable to the order of the Lender, and in the face principal amount of Four Million Dollars ($4,000,000.00) (as amended, modified, restated, supplemented and renewed from time to time, the &#8220;<U>Note</U>&#8221;).</FONT></P>
<P id=PARA14 style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">&nbsp;</FONT></P>
<P id=PARA15 style="TEXT-ALIGN: justify; MARGIN: 0pt; LINE-HEIGHT: 1.25; TEXT-INDENT: 36pt"><FONT style="FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman, Times, serif">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The obligation of the Lender to make the Loan to the Borrowers is expressly