On August 16, 2016, Sypris Electronics, LLC (Seller), a wholly-owned subsidiary of Sypris Solutions Inc. (Company), completed the sale of certain assets, intellectual property, contracts and other assets (CSS Sale) comprised principally of its SioMetrics, Cyber Range, Information Security Solutions and Data Systems product lines. The assets were sold pursuant to the Asset Purchase Agreement between the Company, Seller, and Analog Devices Inc. (Buyer) dated August 16, 2016 (Agreement) pursuant to which the Company received $42,000,000 in cash consideration. On August 16, 2016, the Company applied a portion of its proceeds from the CSS Sale to repay all current borrowings outstanding under its Amended and Restated Loan and Security Agreement with Siena Lending Group, LLC and its affiliates. The Company and Siena concurrently entered into a Consent and Second Amendment to the Revolving Credit Facility which: consented to the CSS Sale; released all collateral rights of Siena with respect to Sypris Electronics, LLC and the Company's operations and subsidiaries in Mexico; and reduced the maximum loan commitment from $15.0 million to $8.0 million. The Consent and Second Amendment also reduced certain fees and provided for ongoing borrowings in the ordinary course of business for a period of 90 days following execution of the agreement, with the intention of further amending or terminating the Revolving Credit Facility within that period. On August 16, 2016, the Company applied a portion of the proceeds from the CSS Sale to pay in full its obligations under the Company's Loan and Security Agreement with Great Rock Capital Partners Management, LLC. The Term Loan Credit Agreement and all outstanding obligations, mortgages, liens and other collateral rights related thereto were terminated upon such payment. In connection with the early repayment and termination of the Term Loan Credit Agreement, the Company paid Great Rock approximately $1.3 million in early termination fees, make whole payments and other earned amounts, and Great Rock paid the Company approximately $6.0 million representing the return of the Company's cash collateral account.

On August 16, 2016, in connection with the CSS Sale, John J. Walsh resigned from his positions as Vice President of the Company, and President of Sypris Electronic, LLC to join Buyer's team.