Document:

CNL STRATEGIC CAPITAL, LLC 8-K

Exhibit
10.2 

 

 

THIRD
AMENDMENT TO THE ESCROW AGREEMENT

 

This
THIRD AMENDMENT TO THE ESCROW AGREEMENT (this “Third Amendment”) is dated this 31st day of January,
2020, amends that certain ESCROW AGREEMENT (the “Original Agreement”) dated as of February 14, 2018, the First
Amendment to the Escrow Agreement (the “First Amendment”) dated as of April 18, 2019, and the Second Amendment
to the Escrow Agreement (the “Second Amendment” dated as of July 12, 2019, by and among CNL Strategic Capital,
LLC, a Delaware limited liability company (the “Company”), UMB Bank, N.A. as escrow agent (the “Escrow
Agent”) and CNL Securities Corp. (the “Managing Dealer”), (collectively, the “Parties”)(the
“Second Agreement”, the “First Amendment” and the Original Escrow Agreement” together the “Agreement”).
All capitalized terms not defined herein shall have the meaning given to such term in the Original Agreement.

WHEREAS,
the Company has previously proposed and continues to offer and sell, on a best-efforts basis through the Managing Dealer, in its
capacity as the managing dealer, and selected broker-dealers that are registered with the Financial Industry Regulatory Authority
or intermediaries that are exempt from such broker-dealer registration (the Managing Dealer and such intermediaries are hereinafter
referred to collectively as the “Distribution Participants”), the Company’s shares of Class A, Class
T, Class D, and Class I limited liability interests (the “Original Shares”), on a best-efforts basis, for at least
$2,000,000 and up to $1,100,000,000 of gross offering proceeds (excluding the shares of its Class A, Class T, Class D and Class
I common stock to be offered and sold pursuant to the Company’s dividend reinvestment plan), at an initial purchase price
of up to $27.32 per Class A share, $26.25 per Class T share, $25.00 per Class D and $25.00 per Class I share (the “Original
Offering”) pursuant to an offering prospectus as amended from time to time and filed with the Securities and Exchange
Commission as part of a registration statement file no. 333-222986, including amended for additional share classes (hereinafter
the “Original Prospectus”); and

WHEREAS,
as of March 7, 2018 at least $2,000,000 in Original Shares of the Company have been subscribed for in the Company’s offering
and therefore the Break Escrow Date has occurred, but the Escrow Agent continues to receive amounts for deposit into the Escrow
Account and to disburse such Escrowed Funds in accordance with section 5(b) of the Original Agreement;

WHEREAS,
the Company, pursuant to the First Amendment, proposed to offer and sell, on a best-efforts basis through the Managing Dealer,
in its capacity as the placement agent, and through Distribution Participants, the Company’s shares of Class FA limited
liability interests (the “April Class FA Shares”), in a private offering exempt from registration, for at least
$2,000,000 and up to $50,000,000 of gross offering proceeds (the “April Class FA Private Offering”) pursuant
to an offering memorandum, dated April 18, 2019, as amended from time to time (hereinafter the “April Class FA Memorandum”)
at a current offering price per April Class FA share; and

WHEREAS,
the Company, pursuant to the Second Amendment, proposed to offer and sell, on a best-efforts basis through the Managing Dealer,
in its capacity as the placement agent, and through Distribution Participants, the Company’s shares of Class FA limited
liability interests (the “July Class FA Shares” and together with the April Class FA Shares the “Class
FA Shares”), in a concurrent private offering exempt from registration up to $50,000,000 of gross offering proceeds
with no minimum offering amount (the “July Class FA Private Offering”) pursuant to an offering memorandum,
dated July 12, 2019, as amended from time to time (hereinafter the “July Class FA Memorandum”) at a current
offering price per July Class FA share, plus applicable selling commissions and placement agent fees; and

WHEREAS,
the Company wishes to extend the July Class FA Escrow Period; and

WHEREAS,
the Company proposes to offer and sell, on a best-efforts basis through the Managing Dealer, in its capacity as the placement
agent, and through Distribution Participants, the Company’s shares of Class S limited liability interests (the “Class
S Shares”), in a concurrent private offering exempt from registration up to $50,000,000 of gross offering proceeds with
no minimum offering amount (the “Class S Private Offering”) pursuant to an offering memorandum, dated January
21, 2020, as amended from time to time (hereinafter the “Class S Memorandum”) at a current offering price per
Class S share, including applicable selling commissions and placement agent fees; and

WHEREAS,
the Company desires to deposit Class S Subscription Payments (as defined herein) into the Escrow Account to be commingled with
the Escrowed Funds from the Original Offering, the April Class FA Private Offering and July Class FA Private Offering and for
the Escrow Agent to act as escrow agent for the April Class FA Private Offering, July Class FA Private Offering, Class S Private
Offering, as well as the Original Offering solely upon the terms and conditions herein set forth; and

WHEREAS,
in order to subscribe for Class S Shares, a subscriber must deliver an executed subscription agreement in substantially the form
attached as an exhibit to the Memorandum, along with the full amount of its subscription, subject to volume discounts or other
discounts, as applicable: (i) by check in U.S. dollars or (ii) by wire transfer of immediately available funds in U.S. dollars
(collectively, the “Class S Subscription Payment”). The Company or the Managing Dealer shall instruct any Distribution
Participants that any such wire transfers shall be in accordance with the instructions provided on Exhibit A hereto.

WHEREAS,
in order to accomplish the foregoing, the Company desires to amend the Original Agreement to allow for the deposit of the Class
S Subscription Payment into the Escrow Account and to set forth the requirements with respect to the deposit and disbursement
of the Class S Subscription Payment;

 

WHEREAS,
the Escrow Agent agrees to act as escrow agent with respect to the Class S Subscription Payments deposited into the Escrow Account.

 

    	 	 	 

    	 

    

 

NOW,
THEREFORE, the parties hereto, in consideration of the mutual promises herein contained and for other good and valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, hereby agree to amend the Agreement as follows:

 

		1.	Sections
                                         1 of the Second Amendment is hereby amended and restated as follows:

		(a)	All
                                         monies deposited in the Escrow Account in connection with the April Class FA Private
                                         Offering and the July Class FA Private Offering are hereinafter referred to as the “Class
                                         FA Escrowed Funds.” The escrow period (the “July Class FA Escrow Period”)
                                         for the July Class FA Shares sold
pursuant to the July Class FA Private Offering shall commence upon the effectiveness of this Second Amendment and shall continue
until March 31, 2020 unless the Company extends the outside date of the July Class FA Private Offering in its sole discretion
(the “July Class FA Outside Date”) and designates such July Class FA Outside Date to the Escrow Agent in writing.
The July Class FA Escrow Period together with the Class FA Post Escrow Break Period (as defined in the First Amendment) shall
collectively be referred to as the “Class FA Escrow Period.” The Escrow Account shall continue to be a non-interest
bearing account and all amounts deposited into the Escrow Account shall be held un-invested.

		2.	All
                                         monies deposited in the Escrow Account in connection with the Class S Private Offering
                                         are hereinafter referred to as the “Class S Escrowed Funds.” The escrow
                                         period (the “Class S Escrow Period”) for the Class S Shares sold pursuant
                                         to the Class S Private Offering shall commence upon the effectiveness of this Third Amendment
                                         and shall continue until the date which is six (6) full months from the commencement
                                         of the Class S Private Offering unless the Company extends the outside date of the Class
                                         S Private Offering in its sole discretion but in no event longer than three (3) full
                                         months beyond initial six month period (the “Class S Outside Date”).
                                         The Company shall certify to the Escrow Agent the Class S Escrow Period and the Class
                                         S Outside Date. The Escrow Account shall continue to be a non-interest bearing account
                                         and all amounts deposited into the Escrow Account shall be held un-invested.

		3.	Sections
                                         2-4 of the Second Amendment are hereby amended and restated as follows:

2.
Deposits into the Escrow Account and Transmission of Subscription Documents.

		(a)	Deposits
                                         in Escrow Account. During the Class S Escrow Period and Class FA Escrow Period, persons
                                         subscribing to purchase Class S and Class FA Shares will be instructed by the Company
                                         and the Distribution Participants to make checks for subscriptions payable to the order
                                         of “UMB Bank, N.A., as EA for CNL Strategic Capital, LLC” or any variation
                                         thereof permitting a deposit in the Escrow Account if accompanied by a corresponding
                                         subscription agreement. Completed subscription agreements and checks in payment for the
                                         purchase price shall be remitted to the Processing Agent at the address designated for
                                         the receipt of such agreements and funds; and, drafts or wires shall be transmitted directly
                                         to the Escrow Account. The Processing Agent will promptly deliver all monies received
                                         in good order from subscribers (or from the Distribution Participants transmitting monies
                                         and subscriptions from subscribers) for the payment of Class S and Class FA Shares to
                                         the Escrow Agent for deposit in the Escrow Account no later than the end of the business
                                         day on which such monies are received by the Processing Agent. Any Class S or Class FA
                                         Subscription Payments received prior to the time, if any, that the Escrowed Funds are
                                         deliverable to the Company, and that are made payable to a party other than the Escrow Agent shall be promptly returned to the Participating Broker-Dealer who submitted the Class S or Class FA Subscription Payment. Completed
subscription agreements and checks shall be delivered by the Participating Broker-Dealer to the Processing Agent no later than
the close of business on the first business day following their receipt by the Distribution Participants; provided, however, if
the Distribution Participants receives subscription agreements and checks at a branch office and final supervisory review is conducted
at a different location (the “Final Review Office”), then the branch office shall transmit the subscription agreements
and checks to the Final Review Office by the close of business on the first business day following their receipt by the branch
office and the Final Review Office shall review the subscription agreements and check to ensure their proper execution and form
and, if they are acceptable, deliver the subscription agreements and the funds to the Processing Agent by the close of business
on the first business day after their receipt by the Final Review Office. All Class S Escrowed Funds and Class FA Escrowed Funds
shall be held in the Escrow Account until such funds are disbursed in accordance with Section 4 of this Third Amendment. Prior
to the disbursement of the Class S Escrowed Funds and Class FA Escrowed Funds, none of the Escrow Agent, the Processing Agent
or the Company is entitled to any of the Class S Escrowed Funds or Class FA Escrowed Funds received into the Escrow Account, and
no Class S Escrowed Funds or Class FA Escrowed Funds deposited in the Escrow Account shall become the property of the Company,
its affiliates, the Escrow Agent or the Processing Agent, nor be subject to the debts or offsets of the Company, its affiliates,
the Escrow Agent, the Processing Agent or Distribution Participants; provided nothing herein shall impose an obligation upon the
Escrow Agent to determine which funds in the Escrow Account constitute Class S Escrowed Funds or Class FA Escrowed Funds and which
funds constitute Escrowed Funds.

		(b)	Subscription
                                         Agreements. The Escrow Agent agrees to cause the Processing Agent to maintain a written
                                         account of each subscription for the Class S and Class FA Shares, which account shall
                                         set forth, among other things, the following information: (i) the subscriber’s
                                         name and address, (ii) the number of Class S and Class FA Shares purchased by such subscriber,
                                         and (iii) the subscription amount paid by such subscriber for such Class S Shares.

3.
Collection Procedure for Class S Subscription Payments and Class FA Subscription Payments.

		(a)	The
                                         Escrow Agent is hereby instructed by the Company to forward each Class S Subscription
                                         Payment and Class FA Subscription Payment for Federal Reserve Bank clearing and upon
                                         collection of the proceeds of each Class FA Subscription Payment, to deposit the collected
                                         proceeds into the Escrow Account.

    	 	 	 

    	 

    

 

		(b)	The
                                         Escrow Agent will timely notify the Company and the Processing Agent in writing via mail,
                                         email or facsimile of any Subscription Payment returned to the subscriber, and the Escrow
                                         Agent is authorized to debit the Escrow Account in the amount of such returned Class
                                         S Subscription Payment or such Class FA Subscription Payment and direct the Processing
                                         Agent to delete the appropriate account from the records maintained by the Processing
                                         Agent.

		(c)	In
                                         the event that the Company or any agent acting on behalf of the Company rejects any subscription
                                         for Class S or Class FA Shares and the funds for such subscription have already been
                                         collected by the Escrow Agent, the Escrow Agent shall, upon receipt from the Company
                                         or the Processing Agent of written notice of such rejection, promptly cause the issuance
                                         of a refund payment by bank check to the rejected or withdrawing subscriber, without
                                         interest or income thereon, if applicable. If the Escrow Agent has not yet collected
                                         funds for such subscription but has submitted such subscription for clearing, the Escrow
                                         Agent shall promptly cause the issuance of a payment by bank check in the amount of such
                                         Class S Subscription Payment or such Class FA Subscription Payment to the rejected or
                                         withdrawing subscriber only after the Escrow Agent has cleared such funds. If the Escrow
                                         Agent has not yet submitted the Class S Subscription Payment or Class FA Subscription
                                         Payment relating to the subscription of the rejected or withdrawing subscriber, the Escrow
                                         Agent shall promptly cause such Class S Subscription Payment or such Class FA Subscription
                                         Payment to be remitted to the drawer of the Class S Subscription Payment or Class FA
                                         Subscription Payment submitted by or on behalf of the subscriber.

		(d)	In
                                         the event that money is deposited into the Escrow Account in error, the Escrow Agent
                                         shall notify the Company and the Processing Agent in writing via mail, email or facsimile
                                         of any such error and promptly cause the issuance of a refund payment by bank check to
                                         the appropriate party only after the Class S Subscription Payment or the Class FA Subscription
                                         Payment has cleared.

4.
Ongoing Distribution of Escrowed Funds.

		(a)	Class
                                         FA Escrow Period. During the Class FA Escrow Period, the Escrow Agent shall periodically
                                         transfer to the Company’s designated account, the Class FA Escrowed Funds pursuant
                                         to standing written instructions from the Company delivered to the Escrow Agent from
                                         time to time.

		(b)	Class
                                         S Escrow Period. During the Class S Escrow Period, the Escrow Agent shall periodically
                                         transfer to the Company’s designated account, the Class S Escrowed Funds pursuant
                                         to standing written instructions from the Company delivered to the Escrow Agent from
                                         time to time.

		4.	Notwithstanding
                                         anything to the contrary herein, the Company and the Managing Dealer acknowledge and
                                         agree that the Escrowed Funds, Class S Escrowed Funds and Class FA Escrowed Funds may
                                         be commingled in the Escrow Account and the Escrow
Agent shall have no responsibility to hold the Class S Escrowed Funds, Class FA Escrowed Funds and Escrowed Funds separately.
The Escrow Agent may conclusively rely upon the records of the Processing Agent in determining the amount of Class S Escrowed
Funds and Class FA Escrowed Funds in the Escrow Account. The Company agrees that any future requested transfer of Escrow Funds
submitted to the Escrow Agent in accordance with Section 5(b) of the Original Agreement shall contain a certification by the Company
that it is requesting Escrowed Funds in accordance with Section 5(b) of the Original Agreement and that such request is in compliance
with the terms of the Agreement. The Escrow Agent may conclusively rely upon any such written request and certification of the
Company. To the extent at any time the Escrow Agent is directed to return subscription amounts to a subscriber and there are insufficient
amounts in the Escrow Account to return such funds, the Escrow Agent shall suffer no liability hereunder and the Company agrees
to pay any such amount owed directly to the subscriber affected.

		5.	The
                                         Company and the Managing Dealer warrant that this Third Amendment is in compliance with
                                         the Original Offering, April Class FA Private Offering and July Class FA Private Offering.

		6.	The
                                         Agreement, except as expressly amended by this Third Amendment shall continue unmodified
                                         and in full force and effect.

		7.	No
                                         provision of this Third Amendment may be changed or modified, except by an instrument
                                         in writing signed by each of the parties hereto.

 

		8.	This
                                         Third Amendment shall be governed and construed in accordance with the laws of the State
                                         of Delaware without regard to the principles of conflicts of law.

 

IN
WITNESS WHEREOF, the parties have duly executed this Third Amendment of the date first above written.

 

	 	CNL STRATEGIC CAPITAL, LLC
	 	 
	 	By:	/s/ Tammy Tipton	 
	 	Name:	 Tammy Tipton	 
	 	Title:	Authorized
        Signatory	 
	 	 
	 	 
	 	UMB
        BANK, N.A., as escrow agent
	 	 
	 	By:	/s/ Lara L. Stevens	 
	 	Name:	Lara
        L. Stevens	 
	 	Title:	Vice
        President	 
	 	 
	 	 
	 	CNL SECURITIES CORP.
	 	 
	 	By:	/s/ Erin M. Gray	 
	 	Name:	Erin M. Gray	 
	 	Title:	Authorized
        Signatory	 

 

 

    	 	 	 

    	 

    

 

EXHIBIT
A

 

Wiring
Instructions

 

 

 

UMB
Bank, N.A.

ABA
No: 101000695

Acct
No: 9872323874

Acct
Name: UMB Bank, N.A., as EA for CNL Strategic Capital, LLCExhibit

DESCRIPTION OF THE REGISTRANT’S SECURITIES
REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES
EXCHANGE ACT OF 1934
MaxLinear, Inc. has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), our Common Stock.
Description of Common Stock
The following description of our Common Stock is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to our Fifth Amended and Restated Certificate of Incorporation (the “Certificate of Incorporation”) and our amended and restated Bylaws (the “Bylaws”), each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit 4.2 is a part. We encourage you to read our Certificate of Incorporation, our Bylaws and the applicable provisions of the Delaware General Corporation Law, for additional information.
Authorized Capital Shares
Our authorized capital stock consists of 550,000,000 shares of common stock, $0.0001 par value per share (“Common Stock”), and 25,000,000 shares of undesignated preferred stock, $0.0001 par value per share. The outstanding shares of our Common Stock are fully paid and nonassessable.
Common Stock
Voting. Each holder of our Common Stock is entitled to one vote for each share held of record on any matter submitted to a vote of stockholders. The Certificate does not provide for cumulative voting for the election of directors.
Dividends and Distributions. Subject to preferences that may apply to any outstanding shares of preferred stock, the holders of Common Stock will be entitled to receive ratably any dividend or distribution of cash, property or shares of our capital stock that is paid or distributed by the Company.
Liquidation Rights. Upon our liquidation, dissolution or winding up, holders of our Common Stock will be entitled to share ratably in all assets remaining after payment of any liabilities and the liquidation preferences and any accrued or declared but unpaid dividends, if any, with respect to any outstanding shares of preferred stock.
No Preemptive, Conversion or Redemption Rights. Holders of Common Stock have no preemptive rights and no right to convert their Common Stock into other securities. There are no redemption or sinking fund provisions applicable to our Common Stock.
Subject to Rights of Preferred Stock. The rights of the holders of our Common Stock are subject to, and may be adversely affected by, the rights of holders of any shares of preferred stock that we may designate and issue in the future.
Preferred Stock
Our board of directors has the authority, without further action by our stockholders, to designate and issue up to 25,000,000 shares of preferred stock in one or more series. Our board of directors may also designate the rights, preferences and privileges of the holders of each such series of preferred stock, any or all of which may be greater than or senior to those granted to the holders of Common Stock. Though the actual effect of any such issuance on the rights of the holders of Common Stock will not be known until our Board of Directors determines the specific rights of the holders of preferred stock, the potential effects of such an issuance include:
•diluting the voting power of the holders of Common Stock;
•reducing the likelihood that holders of Common Stock will receive dividend payments;
		
	•
	reducing the likelihood that holders of Common Stock will receive payments in the event of our liquidation, dissolution, or winding up; and

•delaying, deterring or preventing a change-in-control or other corporate takeover.

 
Anti-Takeover Effects of Delaware Law and Our Certificate of Incorporation and Bylaws
Certain provisions of Delaware law and our Certificate and Bylaws contain provisions that could have the effect of delaying, deferring or discouraging another party from acquiring control of us. These provisions, which are summarized below, are expected to discourage certain types of coercive takeover practices and inadequate takeover bids. These provisions are also designed in part to encourage anyone seeking to acquire control of us to first negotiate with our board of directors. We believe that the advantages gained by protecting our ability to negotiate with any unsolicited and potentially unfriendly acquirer outweigh the disadvantages of discouraging such proposals, including those priced above the then-current market value of our Common Stock, because, among other reasons, the negotiation of such proposals could improve their terms.
Certificate of Incorporation and Bylaws
Our Certificate and Bylaws include provisions that:
		
	•
	authorize our board of directors to issue, without further action by the stockholders, up to 25,000,000 shares of undesignated preferred stock;

		
	•
	require that any action to be taken by our stockholders be effected at a duly called annual or special meeting and not by written consent;

		
	•
	specify that special meetings of our stockholders can be called only by our board of directors, our chairman of the board of directors, or the President of the Company;

		
	•
	establish an advance notice procedure for stockholder approvals to be brought before an annual meeting of our stockholders, including proposed nominations of persons for election to our board of directors;

		
	•
	establish that our board of directors is divided into three classes, Class I, Class II and Class III, with each class serving staggered terms;

		
	•
	provide that our directors may be removed only for cause;

		
	•
	provide that vacancies on our board of directors may be filled only by a majority of directors then in office, even though less than a quorum;

		
	•
	specify that no stockholder is permitted to cumulate votes at any election of directors; and

		
	•
	require supermajority votes of the holders of our Common Stock to amend special provisions of our charter documents.

Delaware Anti-Takeover Statute
We are subject to the provisions of Section 203 of the Delaware General Corporation Law regulating corporate takeovers. In general, Section 203 prohibits a publicly-held Delaware corporation from engaging, under certain circumstances, in a business combination with an interested stockholder for a period of three years following the date the person became an interested stockholder unless:
		
	•
	prior to the date of the transaction, the board of directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;

		
	•
	upon completion of the transaction that resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding, but not for determining the outstanding voting stock owned by the interested stockholder, (1) shares owned by persons who are directors and also officers and (2) shares owned by employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

		
	•
	at or subsequent to the date of the transaction, the business combination is approved by the board of directors of the corporation and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder.

 
Generally, a business combination includes a merger, asset or stock sale, or other transaction resulting in a financial benefit to the interested stockholder. An interested stockholder is a person who, together with affiliates and associates, owns or, within three years prior to the determination of interested stockholder status, did own 15% or more of a corporation’s 

outstanding voting stock. We expect the existence of this provision to have an anti-takeover effect with respect to transactions our board of directors does not approve in advance. We also anticipate that Section 203 may discourage business combinations or other attempts that might result in a premium over the market price for the shares of Common Stock held by our stockholders.
The provisions of Delaware law and our Certificate and Bylaws could have the effect of discouraging others from attempting hostile takeovers and, as a consequence, they may also inhibit temporary fluctuations in the market price of our Common Stock that often result from actual or rumored hostile takeover attempts. These provisions may also have the effect of preventing changes in our management. It is possible that these provisions could make it more difficult to accomplish transactions that stockholders may otherwise deem to be in their best interests.
Transfer Agent and Registrar
The Transfer Agent and Registrar for our common stock is Computershare Trust Company, N.A. Its address is 250 Royall Street, Canton, Massachusetts 02021.
Listing on The New York Stock Exchange
Our common stock is listed on the New York Stock Exchange under the symbol “MXL.”

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