On June 1, 2016, CPI Aerostructures Inc. entered into an ISDA Master Agreement and Schedule with Citizens Bank N.A. to fix the LIBOR portion of the interest rate on its revolving credit loan under the Amended and Restated Credit Agreement among the company, the Lenders party thereto and BankUnited, N.A., lead arranger, administrative agent and collateral agent dated as of March 28, 2016 and amended as of March 24, 2016. The effect of the Interest Rate Swap Agreement is that the Company will pay a fixed interest rate of 4.55% on the revolving credit loan under the Restated Agreement for the duration of such revolving credit loan.