SEC Contract Filing

Filing Date: 2018-06-19

Document Content:
<DOCUMENT>
<TYPE>EX-10.24
<SEQUENCE>6
<FILENAME>ex_116273.htm
<DESCRIPTION>EXHIBIT 10.24
<TEXT>
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<p style="margin-bottom: 0px; text-align: right; margin-top: 0px"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt"><b>Exhibit 10.24</b></font></p>

<p style="margin-bottom: 0px; text-align: left; margin-top: 0px"><font style="font-family: 'Times New Roman', Times, serif; font-size: 10pt">&nbsp;</font></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>CONDITIONAL WAIVER &amp; </b><b>MODIFICATION NO. 1 TO</b><b> </b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>LOAN AND SECURITY AGREEMENT</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>&nbsp;</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">This Conditional Waiver &amp; Modification No. 1 to Loan and Security Agreement (this<b> </b>&ldquo;<u>Modification</u>&rdquo;) is entered into as of March 26, 2018 (the &ldquo;<u>Stated </u><u>M</u><u>odification Date</u>&rdquo;), by and between Partners for Growth V, L.P. (&ldquo;<u>PFG</u>&rdquo;), Giga-tronics Incorporated, a California corporation, and Microsource, Inc., a California corporation (individually and collectively, jointly and severally, &ldquo;<u>Borrower</u>&rdquo;). Capitalized terms used but not defined in this Modification shall have the meanings given them in the Loan Agreement.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>&nbsp;</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:center;"><b>Recitals</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:left;"><b>&nbsp;</b></p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">WHEREAS, PFG and Borrower entered into that certain Loan and Security Agreement dated as of April 27, 2017 (the &ldquo;<u>Loan Agreement</u>&rdquo;) and certain other Security Documents (as defined below), pursuant to which PFG has made available to Borrower the principal amount of $1,500,000, all of which is outstanding on the Stated Modification Date, in addition to $89,375 in accumulated deferred interest (calculated as of March 23, 2018) which is due and payable on the Maturity Date.</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">WHEREAS, PFG and Borrower entered into that certain Forbearance under Loan and Security Agreement dated as of August 2, 2017, pursuant to which PFG agreed to forbear from exercising remedies under the Loan Agreement due to Borrower&rsquo;s &ldquo;Specified Defaults&rdquo; as defined therein until the earlier to occur of August 31, 2017 and certain therein-specified Termination Events, which forbearance was extended under that certain Forbearance Extension under Loan and Security Agreement dated as of September 1, 2017, pursuant to which PFG agreed to extend the fixed Forbearance expiration date forbear from exercising remedies under the Loan Agreement due to Borrower&rsquo;s &ldquo;Specified Defaults&rdquo; as defined therein until the earlier to occur of October 15, 2017 and certain therein-specified Termination Events, which forbearance extension was further extended pursuant to that certain Forbearance Extension under Loan and Security Agreement dated as of February 16, 2018, pursuant to which PFG agreed to extend the fixed Forbearance expiration date before exercising remedies under the Loan Agreement due to Borrower&rsquo;s &ldquo;Specified Defaults&rdquo; as defined therein (the &ldquo;<u>Pending Defaults</u>&rdquo;) until the earlier to occur of March 31, 2018 and certain therein-specified Termination Events (the &ldquo;<u>Currently Effective</u><u> Forbearance</u>&rdquo;);</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">WHEREAS, the Currently Effective Forbearance contemplates a restructuring of (inter alia) the financial covenants applicable under the Loan Agreement in connection with the satisfaction of an equity (or convertible debt) financing condition set forth in Section 9(d) of the Currently Effective Forbearance and Section 7(c) hereof (the &ldquo;<u>Financing Condition</u>&rdquo;);</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;text-indent:36pt;">WHEREAS, the parties desire to modify the Loan Agreement to waive the Pending Defaults and to anticipate and facilitate the satisfaction of the Financing Condition, the waiver and modification set forth herein to be expressly conditional upon and automatically effective upon the satisfaction of the conditions set forth in Section 7 (including the Financing Condition);</p>

<p style="font-family:'Times New Roman', Times, serif;font-size:10pt;margin:0pt;text-align:justify;">&nbsp;</p>

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