Document:

Exhibit 10.4

 

AMENDMENT NO. 1 

TO

SERIES SEED PREFERRED STOCK INVESTMENT
AGREEMENT

 

AMENDMENT
NO. 1 TO SERIES SEED PREFERRED STOCK INVESTMENT AGREEMENT, effective as of October 31, 2019 (this “Amendment”),
by and between Lectrefy, Inc., a Delaware corporation (the “Company”), and Lee Aerospace, Inc., a Kansas
corporation (“Lee Aerospace”). The Company and Lee Aerospace may be referred to herein each as a “Party”
and collectively as the “Parties.”

 

W I T N E S S E T H:

 

WHEREAS,
the Company and Lee Aerospace are parties to that certain Series Seed Preferred Stock Investment Agreement, dated as of August
1, 2018 (the “Agreement”);

 

WHEREAS, unless
otherwise defined herein, each capitalized term used herein shall have the respective meaning ascribed to it in the Agreement;

 

WHEREAS, Lee
Aerospace has provided, and may continue providing, bridge financing to the Company in addition to its investment of the Total
Series Seed Investment Amount under the Agreement (the “Bridge Financing”);

 

WHEREAS, in
consideration of the Bridge Financing, the Company and Lee Aerospace desire to amend the Agreement on the terms and conditions
set forth in this Amendment.

 

NOW, THEREFORE,
in consideration of the foregoing and the respective covenants and agreements set forth herein, and intending to be legally bound
hereby, subject to the conditions and other terms herein set forth, the Parties hereby agree as follows:

 

1.      
Repayment Election. The Parties acknowledge, agree and understand that, if and when approved by the Company’s
Board of Directors (the “Board”), in its sole and absolute discretion and in accordance with applicable
law, the Company may elect, from time to time, to make periodic payments to Lee Aerospace, which payments shall not exceed in
the aggregate the Total Series Seed Investment Amount (collectively, the “Repayment”). When reviewing
whether the Company should make any payment to Lee Aerospace in connection with the Repayment, the Board, in exercising its fiduciary
duties in accordance with applicable law, shall consider, among other things, the then current and future financial condition
and commercial, operational and financing prospects of the Company as they relate to the best interests of the Company and its
stockholders.

 

0.   
Termination or Modification of the Repayment. The Parties further acknowledge, agree and understand that, upon the
Board’s determination that the Repayment adversely affects the Company’s ability to raise additional capital for growth
and operations, the structure of the Repayment may be modified or terminated, in the Board’s sole and absolute discretion
and in accordance with applicable law.

 

2.    No Implied Amendments. Except as specifically amended by this Amendment, the Agreement shall remain in full force
and effect in accordance with its terms and is hereby ratified and confirmed. All references to “the date hereof”
in the Agreement shall continue to refer to the date of the Agreement before any amendment, consent or waiver.

 

     

     

    

 

4.   
Effectiveness of Amendment. This Amendment shall be deemed to be a modification to the Agreement in accordance with
Section 8.8 of the Agreement.

 

5.   
Benefit of this Amendment. This Amendment shall be binding upon and inure to the benefit of the Parties and their
respective successors and permitted assigns.

 

6.    Headings.
The headings used in this Amendment are for reference purposes only and shall not affect in any way the meaning or interpretation
of this Amendment.

 

7.    Governing Law. All questions concerning the construction, validity, and interpretation of this Amendment shall be
governed by and construed in accordance with the domestic laws of the State of Delaware, without giving effect to any choice of
law or conflicts of law principles (whether of the State of Delaware or any other jurisdiction) that would cause the application
of the laws of any jurisdiction other than the State of Delaware.

 

8.   
Counterparts. This Amendment may be executed simultaneously in multiple counterparts, and in separate counterparts,
each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

 

9.   
References to Agreement. On and after the date hereof, each reference in the Agreement to “this Agreement,”
 “hereunder,” “hereof” or words of like import referring to the Agreement shall mean the Agreement as amended
by this Amendment.

 

[Signature page follows.]

 

     

     

    

 

IN WITNESS WHEREOF, the Parties have executed and delivered
this Amendment as of the date first above written.

 

	COMPANY:
	 	 
	LECTREFY, INC.
	 	 
	By:	 
	 	Name: John M. Cook II
	 	Title:   Chief Financial Officer

 

	LEE AEROSPACE:
	 
	LEE AEROSPACE, INC.
	 
	By:	

                                                                                

	 	Name: James Lee
	 	Title:   Chief Executive Officer

 

[Signature Page to Amendment No. 1 to Series
Seed Preferred Stock Investment Agreement]Exhibit 10.8

 

PROMISSORY NOTE

 

	$1,902,909	Miami, Florida

January 15, 2019

 

FOR VALUE RECEIVED,
the undersigned borrower (the “Borrower”) promises to pay to Lee Aerospace, Inc., a Kansas corporation (the
 “Lender”), at its principal office the aggregate principal sum of up to One Million Nine Hundred Two Thousand
Nine Hundred Nine Dollars ($1,902,909) (the “Maximum Principal Amount”), as updated and set forth on the attached
Schedule 1, together with interest on the outstanding principal of each Installment Amount (as defined below) at the rate
of Five Percent (5.0%) per annum (computed on the basis of actual calendar days elapsed and a year of three hundred sixty-five
(365) days), or, if less, at the highest rate of interest then permitted under applicable law. Interest shall commence respectively
on the date when each Installment Amount is received by the Borrower and shall continue to accrue on the corresponding outstanding
principal until paid in accordance with the provisions hereof. If any interest is determined to be in excess of the then legal
maximum rate, then that portion of each interest payment representing an amount in excess of the then legal maximum rate shall
be deemed a payment of the applicable principal of the corresponding Installment Amount and applied against the principal of the
obligations evidenced by this Promissory Note (this “Note”).

 

1.           Maturity.
Unless sooner paid in accordance with the terms hereof, the entire unpaid principal amount as then set forth on Schedule 1
and all unpaid accrued interest of this Note shall become fully due and payable on the earlier of (i) December 31, 2020, or
(ii) the acceleration of the maturity of this Note pursuant to Section 3.

 

2.           Installment
Amounts. The Lender shall fund to the Borrower the amounts reasonably requested by the Borrower from time to time for its
operating and/or capital expense purposes (each an “Installment Amount” and, collectively, the “Installment
Amounts”) and the Borrower shall update Schedule 1 accordingly; provided, however, that the aggregate
sum of the Installment Amounts set forth on Schedule 1 shall not exceed the Maximum Principal Amount; and provided,
further, that the Lender shall not be obligated to fund any additional Installment Amounts to the Borrower in the event
that a Cause Event (as defined below) has not been reasonably cured by the Borrower within thirty (30) days after receiving written
notice from the Lender in good faith, which notice describes the occurrence of such Cause Event in reasonable and accurate detail.
For purposes of this Note, a “Cause Event” shall mean, with respect to an officer, employee or contractor of
the Borrower: (i) the conviction of (or pleading nolo contendere to), the commission by such officer, employee or contractor of,
or the indictment or formal admission of such officer, employee or contractor to, a felony, a crime of moral turpitude, dishonesty
or unethical business conduct, or any similar crime involving the Borrower, in each case which has a material and adverse effect
on the Borrower and its operations and financial condition; or (ii) any engaging in conduct to the material detriment of the Borrower
and its stockholders, including (but not limited to) willful misconduct, willful or gross negligence, fraud, misappropriation,
embezzlement, and/or any misuse of the Borrower’s funds, in each case which has a material and adverse effect on the Borrower
and its operations and financial condition.

 

     

     

    

 

3.           Events
of Acceleration. The entire unpaid principal amount of this Note and all then accrued and unpaid interest of this Note shall
become fully due and payable upon the earliest of:

 

(i)    
the closing of aggregate proceeds of at least Five Million Dollars ($5,000,000) in new equity financing by the Borrower;

 

(ii)   
immediately prior to the first filing by the Borrower of a registration statement under the Securities Act of 1933, as amended;

 

(iii)   the
filing of a petition by or against the Borrower under any provision of the Bankruptcy Reform Act (Title 11 of the United States
Code), as amended or recodified from time to time, or under any other law relating to bankruptcy, insolvency, reorganization or
other relief for debtors;

 

(iv)   the
appointment of a receiver, trustee, custodian or liquidator of or for any part of these assets or property of the Borrower;

 

(v)    immediately
prior to the closing of an acquisition of the Borrower, whether by merger or the purchase of all of its outstanding stock or all
(or substantially all) of its assets, by an unrelated third party;

 

(vi)   the
execution by the Borrower of a general assignment for the benefit of creditors; or

 

(vii)  the
occurrence of an event of default under the Security Agreement (as defined below).

 

4.          Form
of Payment; Prepayment. All payments of principal and interest on this Note shall be made without offset or deduction in lawful
tender of the United States to the Lender. All payments on this Note shall be applied first to the payment of accrued and unpaid
interest, and thereafter to the payment of principal. Prepayment of the principal balance of this Note, together with all accrued
and unpaid interest, may be made in whole or in part at any time without penalty.

 

5.          Security.
The Borrower’s obligations under this Note shall be secured by:  (i) a security interest in the Borrower’s intellectual
property pursuant to the Security Agreement, dated as of January 15, 2020 (attached hereto as Exhibit A, the “Security
Agreement”), between the Borrower and the Lender, all terms of which are incorporated herein by this reference; and
(ii) a first-priority security interest in One Million Sixty-Eight Thousand Seven Hundred Fifty (1,068,750) shares of the Borrower’s
Common Stock held and owned of record, respectively, by each of Paul Antonio Pereira and John M. Cook II (collectively, the “Shares”).
The Shares shall be pledged pursuant to the Stock Pledge Agreements of even date herewith (in the form attached hereto as Exhibit
B, collectively, the “Stock Pledge Agreements”), by and between, respectively, (i) the Lender and Paul
Antonio Pereira, and (ii) the Lender and John M. Cook II, all terms of which are incorporated herein by this reference.

 

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6.          
Default. For purposes of this Note, the failure of the Borrower to pay when due the principal balance and accrued
interest under this Note shall constitute an “Event of Default.” If an Event of Default occurs, all indebtedness
under this Note shall become immediately due and payable without any action on the part of the Lender, and the Borrower shall
immediately pay to the Lender all such amounts.

 

7.          Collection
and Attorneys’ Fees. If any action is instituted to collect any indebtedness under this Note, then the Borrower promises
to pay all reasonable costs and expenses, including reasonable attorneys’ fees, incurred by the Lender in connection with
such action.

 

8.          Assignment.
The terms and conditions of this Note shall inure to the benefit of and be binding upon the respective successors and assigns
of the parties. Notwithstanding the foregoing, neither the Lender nor the Borrower may assign, pledge or otherwise transfer this
Note without the prior written consent of the other party.

 

9.          Governing
Law. This Note and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be
governed, construed and interpreted in accordance with the laws of Delaware, without giving effect to principles of conflicts
of law thereof.

 

10.        Conflicting
Agreements. In the event of any inconsistencies between the terms of this Note and the terms of any other document related
to the loan evidenced by this Note, the terms of this Note shall prevail.

 

11.        Amendment.
Any term of this Note may be amended and the observance of any term of this Note may be waived only with the written consent of
the Lender and the Borrower; provided, however, that the Borrower may update Schedule 1 attached hereto without
such written consent in order to reflect additional Installment Amounts received by the Borrower from time to time.

 

[Signature page follows.]

 

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IN
WITNESS WHEREOF, the Borrower has caused this Note to be duly executed and delivered as of the date first above written.

 

	 	BORROWER
	 	 
	 	LECTREFY INC.
	 	 
	 

                                                        

                                                       
	By: 	
	 	Name:	Paul Antonio Pereira
	 	Title:	Chief Executive Officer
	 	 
	Acknowledged
                    and Agreed:

	 
	 	 
	LENDER

	 
	 	 
	LEE
                                         AEROSPACE, INC.

	 
	 	 
	By:
	  
	 
	Name:           James
                    Lee

	 
	Title:           
                     Chief Executive Officer

	 

 

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SCHEDULE 1

 

In accordance with Section 2
of this Note, the Lender has loaned to the Borrower the following Installment Amounts on the respective dates received by the
Borrower, as set forth below:

 

	Date Received by the Borrower	 	Installment
    Amounts	 
	December 13, 2019	 	$	80,000.00	 
	December 18, 2019	 	$	82,000.00	 
	January 15, 2020	 	$	200,000.00	 
	January 25, 2020	 	$	212,050.00	 
	January 29, 2020	 	$	50,000.00	 
	February 10, 2020	 	$	213,000.00	 
	February 24, 2020	 	$	100,000.00	 
	March 3, 2020	 	$	25,000.00	 
	March 10, 2020	 	$	125,000.00	 
	March 24, 2020	 	$	100,000.00	 
	March 27, 2020	 	$	20,000.00	 
	April 1, 2020	 	$	70,000.00	 
	April 14, 2020	 	$	32,500.00	 
	April 21, 2020	 	$	32,500.00	 
	April 28, 2020	 	$	37,500.00	 
	May 14, 2020	 	$	90,000.00	 
	May 28, 2020	 	$	95,000.00	 
	 	 	 	 	 
	Total	 	$	1,564,550.00	 

  

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EXHIBIT A

 

SECURITY AGREEMENT

 

[See attached.]

 

    6 

     

    

 

EXHIBIT B

 

STOCK PLEDGE AGREEMENTS

 

[See attached.]

 

    7

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