Item 1.01 Entry into a Material Definitive Agreement.
On June 15, 2009, Sparton Corporation (the "Company") entered into a Modification Agreement (the "Amendment") with National City Bank, a national banking association (the "Lender"), which amends the terms of the existing Promissory Note dated January 22, 2008 between the Company and the Lender, as amended (the "Promissory Note") and the related documents. The Promissory Note relates to an $18 million revolving line of credit facility (the "Line of Credit Loan") that supports the Company's working capital needs and other general corporate purposes. The Line of Credit Loan is secured by substantially all assets of the Company. The Line of Credit Loan is evidenced by, among other documents, the Promissory Note, as amended by the Master Amendment to Loan Documents, dated as of April 21, 2008 and effective as of March 31, 2008, by the Second Master Amendment to Loan Documents, dated as of July 31, 2008 and effective as of June 30, 2008, by the Third Master Amendment to Loan Documents, dated as of November 12, 2008, by the Fourth Master Amendment to Loan Documents, dated as of January 20, 2009 and by the Promissory Note Modification Agreement dated April 30, 2009 and effective May 1, 2009 (collectively, the "Line of Credit Loan Documents").
Pursuant to the Amendment, the terms of the Line of Credit Loan Documents were amended to extend the maturity date of the Promissory Note from June 15, 2009 to August 15, 2009. The Company also ratified and confirmed its obligations and liability to the Lender under the Line of Credit Loan Documents pursuant to the Amendment.
The Line of Credit Loan Documents include representations, covenants and events of default that are customary for financing transactions of this nature. The Company's obligations under the Line of Credit Loan Documents are guaranteed by each of the Company's subsidiaries, and each guarantee is secured by all assets of the respective subsidiary.
The foregoing does not constitute a complete summary of the terms of the Amendment and reference is made to the complete form of the Amendment and the press release that are attached as Exhibit 10.1 and Exhibit 99.1, respectively, to this report and are hereby incorporated by reference. Table of Contents
Item 9.01 Financial Statements and Exhibits
(d) Exhibits

Exhibit No. Description
Exhibit 10.1 Modification Agreement dated June 15, 2009 by and between Sparton Corporation and National City Bank

Exhibit 99.1 Press Release dated June 19, 2009 issued by Sparton Corporation regarding the Modification Agreement

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