Document:

Exhibit 4.3

Execution Version

 

AMENDMENT NO. 1 TO EXCHANGE NOTE SUPPLEMENT

 

This AMENDMENT NO. 1, dated as of July 7, 2020 (this “Amendment”), amends the 2020-A Exchange Note Supplement, dated as of January 1, 2020 (as amended, the “Exchange Note Supplement”), to the Third Amended and Restated Credit and Security Agreement dated as of July 22, 2005, as amended and restated as of September 1, 2019 (the “Credit and Security Agreement”), among (i) CAB EAST LLC, a Delaware limited liability company, and CAB WEST LLC, a Delaware limited liability company, as borrowers (together, the “Borrowers” and each, a “Borrower”), (ii) U.S. BANK NATIONAL ASSOCIATION, a national banking association, as Administrative Agent (the “Administrative Agent”), (iii) HTD LEASING LLC, a Delaware limited liability company, as Collateral Agent (the “Collateral Agent”), and (iv) FORD MOTOR CREDIT COMPANY LLC, a Delaware limited liability company (“Ford Credit”), as Lender (in this capacity, the “Lender”) and as Servicer (in this capacity, the “Servicer”).

 

Section 1.        Definitions.  Capitalized terms used but not defined in this Amendment are defined in the Exchange Note Supplement (as amended by this Amendment).

 

Section 2.        Amendments.  Under Section 7.1 of the Exchange Note Supplement and Section 10.1(a)(v) of the Credit and Security Agreement, the parties agree to amend the Exchange Note Supplement as follows:

 

(a)         Adding the following new subsection (g) to Section 2.5 of the Exchange Note Supplement:

 

“(g)      Supplemental Deposit.  On or before July 7, 2020, the Borrowers, on behalf of the Depositor, will deposit, or cause to be deposited, the Supplemental Reserve Deposit in the Reserve Account.”

 

(b)         Deleting the definition of “Required Reserve Amount” in its entirety in Appendix 1 of the Exchange Note Supplement and replacing it with the following:

 

““Required Reserve Amount” means $12,484,692.17, which is 1.00% of the Initial Pool Balance.”

 

(c)         Adding the following new definition of “Supplemental Reserve Deposit” to Appendix 1 of the Exchange Note Supplement in the appropriate alphabetical order:

 

““Supplemental Reserve Deposit” means $9,363,519.13, which is 0.75% of the Initial Pool Balance.”

 

Section 3.  Effective Date. The parties to this Amendment, by executing and delivering this Amendment, intend to amend the Exchange Note Supplement, on the terms and conditions stated in this Amendment, as of the date of this Amendment.

 

Section 4.  Incorporation of Amendments.  On the effectiveness of this Amendment, each reference in the Exchange Note Supplement to “this Agreement” will mean and be a reference to the Exchange Note Supplement as amended by this Amendment, and each reference to the Exchange Note Supplement in any other document, instrument and agreement executed and/or

 

 

delivered in connection with the Exchange Note Supplement will mean and be a reference to the Exchange Note Supplement as amended by this Amendment.

 

Section 5.  Confirmation.  Except as specifically amended by this Amendment, the Exchange Note Supplement and all other documents, instruments and agreements executed and/or delivered in connection with the Exchange Note Supplement will remain in full force and effect and are ratified and confirmed.

 

Section 6.  Severability.  If any provision of this Amendment is held invalid, illegal or unenforceable, then it will be deemed severable from the remaining provisions of this Amendment and will in no way affect the validity, legality or enforceability of the remaining Amendment.

 

Section 7.  GOVERNING LAW.  THIS AMENDMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, EXCEPT THAT, UNDER SECTION 3809 OF TITLE 12 OF THE DELAWARE CODE, THE DOCTRINE OF MERGER WILL NOT BE APPLICABLE TO THIS AMENDMENT.

 

Section 8.  Counterparts.  This Amendment may be executed in multiple counterparts.  Each counterpart will be an original and the counterparts will together be one document.

 

[Remainder of Page Intentionally Left Blank]

 

2

 

EXECUTED BY:

 

	
 
    	
CAB EAST LLC,
    
	
 
    	
 
    	
as a Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ryan Hershberger
    
	
 
    	
 
    	
Name:
    	
Ryan Hershberger
    
	
 
    	
 
    	
Title:
    	
President and Assistant   Treasurer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CAB WEST LLC,
    
	
 
    	
 
    	
as a Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ryan Hershberger
    
	
 
    	
 
    	
Name:
    	
Ryan Hershberger
    
	
 
    	
 
    	
Title:
    	
President and Assistant   Treasurer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
FORD MOTOR CREDIT   COMPANY LLC,
    
	
 
    	
 
    	
as Lender and as   Servicer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Ryan Hershberger
    
	
 
    	
 
    	
Name:
    	
Ryan Hershberger
    
	
 
    	
 
    	
Title:
    	
Assistant Treasurer
    

 

[Signature Page to Amendment No. 1 to the 2020-A Exchange Note Supplement]

 

 

	
 
    	
U.S. BANK NATIONAL   ASSOCIATION,
    
	
 
    	
 
    	
not in its individual   capacity but solely as Administrative Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Melissa A. Rosal 
    
	
 
    	
 
    	
Name: Melissa A. Rosal 
    
	
 
    	
 
    	
Title: Vice President 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HTD LEASING LLC,
    
	
 
    	
 
    	
as Collateral Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Melissa A. Rosal 
    
	
 
    	
 
    	
Name: Melissa A. Rosal   
    
	
 
    	
 
    	
Title: President
    

 

[Signature Page to Amendment No. 1 to the 2020-A Exchange Note Supplement]ex_193293.htm

Exhibit 10.3

 

SECOND AMENDMENT TO LICENSE AGREEMENT

 

 

THIS SECOND AMENDMENT TO LICENSE AGREEMENT (“Amendment”) is made and entered into as of this June 30, 2020, by and between BIOLARGO, INC., a Delaware corporation, and its wholly owned subsidiary BioLargo Life Technologies, Inc., a California corporation (collectively, “Licensor”), and CLYRA MEDICAL TECHNOLOGIES, INC., a California corporation (“Licensee”), with respect to the following:

 

r e c i t a l s :

 

A.     Licensor and Licensee are parties to that certain License Agreement dated December 17, 2012 (“License Agreement”), as amended on December 30, 2015 (“First Amendment”), which grants Licensee certain rights to Licensor’s technologies in the field of human Wound Care.

 

B.     The License Agreement requires Licensee pay Licensor an Initial License Fee of $6,979,039 pursuant to the terms of a Promissory Note dated December 17, 2012.

 

C.     Licensor and Licensee desire that Licensee satisfy its obligations under the note through the issuance of shares of Licensee’s common stock at a per-share price equal to the current securities offering of $310.

 

D.     Licensee has developed a product called Clyraguard, a derivative of the licensed technologies, that it believes could fulfill a pivotal role in the COVID-19 pandemic, and desires to manufacture, market and sell that product;

 

E.     The definition of Field of Use in the License Agreement specifically does not include over-the-counter products available without a prescription, and Licensor and Licensee desire to expand the scope of License to allow for over-the-counter sales of Clyraguard;

 

F.     The License Agreement contemplates thirteen expanded Fields of Use, include “oral/dental/periodontics: mouthwash and rinse, hydration for patients”, and Licensee has developed such a product (OraClyr), and therefore desires to further expand the License to include such product;

 

G.     Capitalized terms used but not otherwise defined herein shall have the meaning given to such terms in the License Agreement.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree to amend, modify and supplement the License Agreement as follows:

 

1.     Payment of Initial License Fee. Section 3(a) of the License Agreement provides for the payment by Licensee to Licensor of an Initial License Fee of $6,979,039, payable upon the occurrence of certain trigger events, which, as modified by the First Amendment, have not yet occurred. In full satisfaction of its obligations to pay the Initial License Fee, Licensee shall issue Licensor 22,513.03 shares of Licensee’s common stock, paid at $310 per share. Licensor acknowledges receipt of same and the satisfaction of Licensee’s obligations to pay the Initial License Fee. The parties agree that the promissory note dated December 17, 2012, is hereby cancelled and of no further force and effect.

 

 

 

 

2.      Modification of Definition of Field of Use. License and Licensee hereby agree to amend and replace the definition of Field of Use in the License Agreement, Section 1(c), to the following (which shows additions in underlined italics, and deletions through strikethrough text:

 

  Field of Use means prescription-based and over-the-counter products in:

 

	 	
			(i)

				
			the commercial field of human “Wound Care” (“Wound Care” is defined below) in the medical, dental and ophthalmologic fields of prescription-based; and

			
	 	 	 
	 	
			(ii)

				
			the commercial field of oral, dental, and periodontis, including mouthwash and rinse, and hydration for patients.

			
	 	 	 
	 	
			(iii)

				
			“Field of Use” does NOT include products or processes intended for use on surfaces (e.g., disinfection of a hospital floor or other a hard surface) or other devices usable in a medical setting (e.g., disinfection of a metal instrument used to treat a patient). “Field of Use” does NOT include over-the-counter products available without a prescription.

			

 

3.       Modification of Definition of Wound Care. License and Licensee hereby agree to amend and replace the definition of Wound Care in the License Agreement, Section 1(k), to the following (which shows additions in underlined italics, and deletions through strikethrough text:

 

  Wound Care means articles, compositions, and methods for medical treatment to treat a condition comprising damage to a human patient, the condition including substantive traumatic or non-traumatic breach of the derma. Such medical treatment may include extended application of an article of manufacture (wraps, bandages, bandaids and appliqués) over the epidermis, or wipes or direct application of medication such as liquid, ointment, spray, cream or paste, including any chemistry used on or in a patient during surgery. As non-limiting examples of traumatic damage are cuts, scrapes, punctures, incisions and other intentional or accidental penetration damage through the epidermis. As non-limiting examples of non-traumatic damage are treatment, prophylaxis or prevention of sores, topical infections, insect bites, sub-epidermal infections, boils, and lesions (in the absence of a previous wound at the site). “Wound Care” includes surgical damage to tissues and organs during surgical or other medical procedures as well as from accidental damage to tissues and organs. Surgical and medical procedures, and traumatic events, also include care of the mouth, gums, eyes, optical system and all other organs and tissues. “Wound Care” does NOT include products intended for the treatment of animals.

 

4.       Modification of Definition of Licensed Processes. License and Licensee hereby agree to amend and replace the definition of Licensed Processes in the License Agreement, Section 1(d), to the following (which shows additions in underlined italics, and deletions through strikethrough text): “Licensed Processes means any method, process, modality, procedure, practice, or course of action within the Field of Use covered by a claim of Patent Rights, and/or that incorporates or includes know-how, trade secret, or proprietary information of Licensor.”

 

 

 

 

5.         Modification of Definition of Licensed Products. License and Licensee hereby agree to amend and replace the definition of Licensed Processes in the License Agreement, Section 1(e), to the following (which shows additions in underlined italics, and deletions through strikethrough text): “Licensed Products means any means any article, kit, equipment, system, method, apparatus or unit within the Field of Use covered by a claim of Patent Rights and/or that incorporates or includes know-how, trade secret, or proprietary information of Licensor.”

 

6.         Assignment of Patent Applications. Licensee filed application number 63019922 with the U.S. Patent and Trademark Office on May 4, 2020, Pursuant to Section 6(a) of the License Agreement, Licensee agrees to cause the inventors listed on such application to assign the application to BioLargo Life Technologies, Inc.

 

7.         Sublicensing. License and Licensee hereby agree to amend and replace Section 2(e) titled Sublicensing, and Section 3(c) title Sublicensing Fees, with the following:

 

Licensee shall have the right, with the permission of Licensor, to grant non-exclusive or exclusive sublicenses of its rights under this Agreement to third parties during the term of this Agreement in the Field of Use or any subcategory of the Field of Use, subject to the payment of royalties pursuant to and terms consistent with this Agreement.

 

8.         Miscellaneous.

 

  a.     Effect of Amendment. Except to the extent the License Agreement is modified by this Amendment, the remaining terms and conditions of the License Agreement shall remain unmodified and in full force and effect. In the event of any conflict between the terms and conditions of the License Agreement and the terms and conditions of this Amendment, the terms and conditions of this Amendment shall prevail and control.

 

  b.     Entire Agreement. The License Agreement, together with this Amendment, embodies the entire understanding between the parties hereto with respect to its subject matter and can be changed only by an instrument in writing signed by the parties hereto.

 

  c.     Counterparts. This Amendment may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

  d.     Governing Law. The parties hereto expressly agree that this Amendment shall be governed by, interpreted under, and construed and enforced in accordance with the laws of the jurisdiction identified in the License Agreement.

 

 

 

 

[Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IN WITNESS WHEREOF, the Parties have executed this Amendment to License Agreement as of the date set forth above.

 

 

 

	
			Licensor

			Biolargo, Inc.

			BioLargo Life Technologies, Inc.

			 

			/s/Dennis P. Calvert

			 

				 	
			Licensee

			Clyra Medical Technologies, Inc.

			 

			 

			/s/Steven V. Harrison

			
	
			By: Dennis P. Calvert, President

				 	
			By: Steven V. Harrison, President

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