Document:

pi-ex101_173.htm

Exhibit 10.1

 

THIRD AMENDMENT

TO

THIRD AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

THIS THIRD AMENDMENT to Third Amended and Restated Loan and Security Agreement (this “Amendment”) is entered into this 26th day of April, 2019, by and between SILICON VALLEY BANK (“Bank”) and IMPINJ, INC., a Delaware corporation (“Borrower”), whose address is 400 Fairview Ave. N. Suite 1200, Seattle, WA 98109.

RECITALS

A.Bank and Borrower have entered into that certain Third Amended and Restated Loan and Security Agreement dated as of April 24, 2017, as amended by that certain First Amendment to Third Amended and Restated Loan and Security Agreement dated as of March 5, 2018 and that certain Second Amendment to Third Amended and Restated Loan and Security Agreement dated as of August 17, 2018 (as the same may from time to time be further amended, modified, supplemented or restated, the “Loan Agreement”).

B.Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

C.Bank and Borrower have agreed to amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

1.Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

2.Amendments to Loan Agreement.

2.1Section 2.1.2 (Term Loan). Section 2.1.2 of the Loan Agreement hereby is amended and restated in its entirety and replaced with the following:

“2.1.2Term Loan.

(a)Availability. On the Third Amendment Effective Date, or as soon thereafter as all conditions precedent to the making thereof have been met, Bank shall make a term loan to Borrower in an aggregate principal amount equal to Twenty Three Million Five Hundred Thousand Dollars ($23,500,000) (the “Term Loan”), the proceeds of which shall be used to refinance all Indebtedness owing from Borrower to Bank outstanding as of the Third Amendment Effective Date (excluding Indebtedness under the Revolving Line and with respect to Bank Services), for working capital and to fund its general business requirements. For the avoidance of doubt, in connection with the making of the Term Loan, Bank hereby waives the Equipment Advance Prepayment Fee and the Term Loan Prepayment Fee (as such terms were defined prior to the Third Amendment Effective Date).

(b)Repayment. No principal payments with respect to the Term Loan shall be required from the Third Amendment Effective Date through April 30, 2020 (the “Interest-Only Period”), provided that accrued and unpaid interest shall be due and payable in accordance with Section 2.3(a) hereof. Any amount of the Term Loan outstanding on April 30, 2020, shall be payable in (i) thirty-six (36) consecutive equal monthly installments of principal, plus (ii) monthly payments of accrued interest (each a “Term Loan Payment”), beginning on May 1, 2020, and continuing on the first day of each month thereafter through the Term Loan Maturity Date. Borrower’s final Term Loan Payment, due on the Term Loan Maturity Date, shall include all outstanding principal and accrued and unpaid interest under the Term Loan. Once repaid, the Term Loan may not be reborrowed.

(c)Prepayment.

(i)Mandatory Prepayment Upon an Acceleration. If the Term Loan is accelerated following the occurrence of an Event of Default, Borrower shall immediately pay to Bank an amount equal to the sum of (a) all outstanding principal with respect to the Term Loan, plus accrued and unpaid interest thereon, (b) the Term Loan Prepayment Fee, and (c) all other sums, including Bank Expenses, if any, that shall have become due and payable hereunder in connection with the Term Loan.

(ii)Voluntary Prepayment. So long as an Event of Default has not occurred and is not continuing, Borrower shall have the option to prepay all, but not less than all, of the Term Loan, provided Borrower (a) delivers written notice to Bank of its election to prepay the Term Loan at least ten (10) days prior to such prepayment, and (b) pays, on the date of such prepayment (i) all outstanding principal with respect to the Term Loan, plus accrued and unpaid interest thereon, (ii) the Term Loan Prepayment Fee, and (iii) all other sums, including Bank Expenses, if any, that shall have become due and payable hereunder in connection with the Term Loan.”

 

 

1

 

2.2Section 2.1.3 (Equipment Advance). Section 2.1.3 of the Loan Agreement hereby is amended and restated in its entirety and replaced with the following:

“2.1.3Intentionally Omitted.”

2.3Section 2.4 (Fees). Section 2.4(c) of the Loan Agreement hereby is amended and restated in its entirety and replaced with the following:

“(c)Intentionally Omitted;

2.4Section 5.10 (Use of Proceeds). Section 5.10 of the Loan Agreement hereby is amended and restated in its entirety and replaced with the following:

“5.10Use of Proceeds. Borrower shall use the proceeds of the Credit Extensions solely as working capital and for general corporate purposes and not for personal, family, household or agricultural purposes.”

2.5Section 6.7 (Financial Covenants). Section 6.7(a) of the Loan Agreement hereby is amended and restated in its entirety and replaced with the following:

“(a)Adjusted EBITDA Loss. Adjusted EBITDA loss, measured on a trailing twelve (12) month basis as of the last day of each calendar quarter, of not greater than the following amounts for the relevant measuring periods:

 

	
Measuring Period Ending
	
Maximum Adjusted EBITDA Loss

	
 
	
 

	
Each calendar quarter during the 2019 calendar year
	
($10,000,000)

	
 
	
 

	
Each calendar quarter during the 2020 calendar year
	
($5,000,000)

	
 
	
 

	
Each calendar quarter beginning with the quarter ending 3/31/21
	
$0”

 

2.6Section 8.1 (Payment Default). Section 8.1 of the Loan Agreement hereby is amended and restated in its entirety and replaced with the following:

“8.1Payment Default. Borrower fails to (a) make any payment of principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day cure period shall not apply to payments due on the Revolving Line Maturity Date or the Term Loan Maturity Date). During the cure period, the failure to make or pay any payment specified under clause (a) or (b) hereunder is not an Event of Default (but no Credit Extension will be made during the cure period).”

2.7Section 13 (Definitions). The following terms and their respective definitions set forth in Section 13.1 hereby are added or amended and restated in their entirety and replaced with the following, as appropriate:

“Adjusted EBITDA” means (a) Net Income, plus (b) Interest Expense, plus (c) to the extent deducted in the calculation of Net Income, depreciation expense and amortization expense, plus (d) income tax expense, plus (e) non-cash impairment charges and non-cash stock compensation expense, plus (f) one-time, non-recurring expenses approved in writing by Bank in its sole discretion in an amount not to exceed Five Million Dollars ($5,000,000) during any trailing twelve (12) month period.

“Credit Extension” is any Advance, the Term Loan, Letter of Credit or any other extension of credit by Bank for Borrower’s benefit.

“Interest Expense” means for any fiscal period, net interest expense (whether cash or non-cash) determined in accordance with GAAP for the relevant period ending on such date, including, in any event, interest expense with respect to any Credit Extension and other Indebtedness of Borrower and its Subsidiaries, including, without limitation or duplication, all commissions, discounts, or related amortization and other fees and charges with respect to letters of credit and bankers’ acceptance financing and the net costs associated with interest rate swap, cap, and similar arrangements, and the interest portion of any deferred payment obligation (including leases of all types).

2

 

“LIBOR Rate Margin” is (a) with respect to Advances, (i) if Borrower’s trailing twelve (12) month Adjusted EBITDA is greater than or equal to Zero Dollars ($0.00), two and three quarters percentage points (2.75%) and (ii) in all other cases, three and one quarter percentage points (3.25%) and (b) with respect to the Term Loan, (i) if Borrower’s trailing twelve (12) month Adjusted EBITDA is greater than or equal to Zero Dollars ($0.00), three percentage points (3.00%) and (ii) in all other cases, three and one half percentage points (3.50%).

“Liquidity Threshold” means Fifty Five Million Dollars ($55,000,000).

“Prime Rate Margin” is (a) with respect to Advances, (i) if Borrower’s trailing twelve (12) month Adjusted EBITDA is greater than or equal to Zero Dollars ($0.00), zero percentage points (0.00%) and (ii) in all other cases, one half of one percentage point (0.50%) and (b) with respect to the Term Loan, (i) if Borrower’s trailing twelve (12) month Adjusted EBITDA is greater than or equal to Zero Dollars ($0.00), one quarter of one percentage point (0.25%) and (ii) in all other cases, three quarters of one percentage point (0.75%).

“Revolving Line Maturity Date” is May 1, 2021.

“Term Loan Maturity Date” is April 1, 2023.

“Term Loan Prepayment Fee” means a fee equal to (i) two percent (2.00%) of the principal amount of the Term Loan prepaid if the prepayment is on or prior to the first anniversary of the Third Amendment Effective Date and (ii) one percent (1.00%) of the principal amount of the Term Loan prepaid if the prepayment is after the first anniversary of the Third Amendment Effective Date but on or prior to the second anniversary of the Third Amendment Effective Date.

“Third Amendment Effective Date” is April 26, 2019.

2.8Section 13 (Definitions). Subsection (b) of the defined term “Permitted Indebtedness” set forth in Section 13.1 hereby is amended and restated in its entirety and replaced with the following:

“(b)Indebtedness existing on the Third Amendment Effective Date and shown on the Perfection Certificate;”

2.9Subsection (a) of the defined term “Permitted Liens” set forth in Section 13.1 hereby is amended and restated in its entirety and replaced with the following:

“(a)Liens existing on the Third Amendment Effective Date and shown on the Perfection Certificate or arising under this Agreement or the other Loan Documents;”

2.10Section 13 (Definitions). The following terms and their respective definitions set forth in Section 13.1 hereby are deleted in their entirety:

“Eligible Equipment,” “Equipment Advance,” “Equipment Advance Prepayment Fee,” “Equipment Maturity Date,” “Financed Equipment.”

2.11Exhibit D to the Loan Agreement is hereby replaced with Exhibit D attached hereto.

3.Limitation of Amendments.

3.1The amendments set forth in Section 2 above are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document.

3.2This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.

4.Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:

4.1Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing;

4.2Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

3

 

4.3The organizational documents of Borrower delivered to Bank on the Effective Date or thereafter remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

4.4The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized;

4.5The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any material contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;

4.6The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on either Borrower, except as already has been obtained or made; and

4.7This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

5.Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

6.Ratification of Perfection Certificate. Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate dated on or about the date hereof (the “Updated Perfection Certificate”) and acknowledges, confirms and agrees that the disclosures and information Borrower provided to Bank in such Updated Perfection Certificate have not changed in any material respect, as of the date hereof. All references in the Loan Agreement and the Loan Documents to “Perfection Certificate” shall hereinafter be deemed to be a reference to the Updated Perfection Certificate.

7.Effectiveness. This Amendment shall be deemed effective upon (i) the due execution and delivery to Bank of this Amendment by each party hereto, (ii) the due execution and delivery to Bank of updated Borrowing Resolutions in the form attached hereto and (iii) Borrower’s payment to Bank of (a) a fee with respect to the Revolving Line equal to Thirty Three Thousand Eight Hundred Fifty Five Dollars ($33,855), (b) a fee with respect to the Term Loan equal to Twenty Two Thousand Two Hundred Ninety Two Dollars ($22,292), and (c) all Bank Expenses incurred through the date of this Amendment.

[Balance of Page Intentionally Left Blank]

 

4

 

 

In WITNESS WHEREOF, the parties hereto caused this Amendment to be duly executed and delivered as o\f the date first written above,

 

	
BANK
	
 
	
BORROWER

	
 
	
 
	
 

	
SILICON VALLE BANK
	
 
	
IMPINJ, INC

	
 
	
 
	
 
	
 
	
 

	
By:
	
/s/ Ryan Kirschling
	
 
	
By:
	
/S/ Yukio Morikubo

	
 
	
 
	
 
	
 
	
 

	
Name:
	
Ryan Kirschling
	
 
	
Name
	
Yukio Morikubo

	
 
	
 
	
 
	
 

	
Title:
	
Director
	
 
	
Title:
	
General Counsel

 

[Signature Page to Third Amendment to Third Amended and Restated Loan and Security Agreement]

 

 

EXHIBIT D

COMPLIANCE CERTIFICATE

 

	
TO:
	
SILICON VALLEY BANK
	
 
	
Date:
	
 

	
FROM:
	
IMPINJ, INC.
	
 
	
 
	
 

 

The undersigned authorized officer of Impinj, Inc. (“Borrower”) certifies that under the terms and conditions of the Third Amended and Restated Loan and Security Agreement between Borrower and Bank (the “Agreement”):

(1) Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below; (2) there are no Events of Default; (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank.

Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.

Please indicate compliance status by circling Yes/No under “Complies” column.

 

	
 
	
Reporting Covenant
	
 
	
Required
	
 
	
Complies

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Quarterly financial statements with 

Compliance Certificate
	
 
	
Quarterly within 45 days 
	
 
	
Yes No

	
 
	
Annual financial statement (CPA Audited)
	
 
	
FYE within 120 days
	
 
	
Yes No

	
 
	
10-Q, 10-K and 8-K
	
 
	
Within 5 days after filing with SEC
	
 
	
Yes No

	
 
	
Annual Projections
	
 
	
30 days after FYE
	
 
	
Yes No

 

	
 
	
Financial Covenant
	
 
	
Required
	
 
	
Actual
	
 
	
Complies

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Maintain at all times (measured quarterly)*
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
Adjusted EBITDA Loss (on a trailing twelve (12) month basis)
	
 
	
See Section6.7
	
 
	
$            
	
 
	
Yes No

	
 
	
Liquidity
	
 
	
> 1.50 : 1.00
	
 
	
         :1.0
	
 
	
 

 

* Applicable only when Borrower’s Bank Liquidity is less than the Liquidity Threshold

 

	
 
	
Performance Pricing for Advances
	
 
	
Applies

	
 
	
Trailing 12-month Adjusted EBITDA ≥ $0.00
	
 
	
LIBOR Rate + 2.75%/Prime Rate + 0.00%
	
 
	
Yes  No

	
 
	
Trailing 12-month Adjusted EBITDA < $0.00
	
 
	
LIBOR Rate + 3.25%/Prime Rate + 0.50%
	
 
	
Yes  No

	
 
	
 
	
 
	
 

	
 
	
Performance Pricing for the Term Loan
	
 
	
Applies

	
 
	
Trailing 12-month Adjusted EBITDA ≥ $0.00
	
 
	
LIBOR Rate + 3.00%/Prime Rate + 0.25%
	
 
	
Yes  No

	
 
	
Trailing 12-month Adjusted EBITDA < $0.00
	
 
	
LIBOR Rate + 3.50%/Prime Rate + 0.75%
	
 
	
Yes No

	
 
	
 
	
 
	
 

	
 
	
Determination of Unused Fee
	
 
	
Applies

	
 
	
Trailing 12-month Adjusted EBITDA ≥ $0.00
	
 
	
0.25%
	
 
	
Yes No

	
 
	
Trailing 12-month Adjusted EBITDA < $0.00
	
 
	
0.35%
	
 
	
Yes No

 

The following financial covenant analyses and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this Certificate.

The following are the exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions to note.”)

 

	
	
 

 

 

	
	
 

	
 

	
 

 

							
	
IMPINJ, INC.
	
 
	
BANK USE ONLY

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Received by:
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
AUTHORIZED SIGNER

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
 
	
 
	
Date:
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
Name:
	
 
	
 
	
 
	
Verified:
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
AUTHORIZED SIGNER

	
Title:
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Date:
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
Compliance Status:
	
 
	
Yes    No

 

 

 

Schedule 1 to Compliance Certificate

Financial Covenants of Borrower

In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern.

Dated: ____________________

I.Adjusted EBITDA Loss (Section 6.7(a))*

Required:Adjusted EBITDA Loss, measured quarterly on a trailing twelve (12) month basis, of not greater

than the amounts set forth in Section 6.7(a) of the Loan Agreement

Actual:

 

	
A.
	
Net Income
	
$

	
 
	
 
	
 

	
B.
	
To the extent included in the determination of Net Income
	
 

	
 
	
 
	
 

	
1.
	
The provision for income taxes
	
$

	
 
	
 
	
 

	
2.
	
Depreciation expense
	
$

	
 
	
 
	
 

	
3.
	
Amortization expense
	
$

	
 
	
 
	
 

	
4.
	
Net Interest Expense
	
$

	
 
	
 
	
 

	
5.
	
All non-cash impairment charges and non-cash stock compensation expense
	
$

	
 
	
 
	
 

	
6.
	
All one-time, non-recurring expenses approved in writing by Bank in its sole discretion in an amount not to exceed Five Million Dollars ($5,000,000) during any trailing twelve (12) month period.
	
$

	
 
	
 
	
 

	
7.
	
The sum of lines 1 through 6
	
$

	
 
	
 
	
 

	
C.
	
Adjusted EBITDA (line A plus line B.7)
	
 

 

Is line C greater than or equal to the required amount set forth in Section 6.7(a) as of the end of the calendar quarter?

 

	
 
	
 
	
 
	
No, not in compliance
	
 
	
 
	
Yes, in compliance

 

No, not in compliance Yes, in compliance

* Applicable only when Borrower’s Bank Liquidity is less than the Liquidity Threshold

 

 

IILiquidity Ratio (Section 6.7(b))*

Required:A ratio, measured quarterly, of (I) unrestricted cash at Bank or Bank’s Affiliates (subject to a Control Agreement) plus net Accounts receivable, to (II) all Indebtedness (excluding Indebtedness owed to Bank from credit cards but including outstanding letters of credit) owing from Borrower to Bank of not less than 1.50 to 1.00.

Actual (quarter end):

 

	
A.
	
Aggregate value of Borrower’s unrestricted cash at Bank or Bank Affiliates subject to a Control Agreement
	
$

	
 
	
 
	
 

	
B
	
Aggregate value of net Accounts receivable of Borrower
	
$

	
 
	
 
	
 

	
C
	
Liquidity (line A plus line B)
	
$

	
 
	
 
	
 

	
D.
	
Aggregate value of all Indebtedness owing from Borrower to Bank (including outstanding letters of credit)
	
$

	
 
	
 
	
 

	
E.
	
Aggregate value of all Indebtedness owed to Bank from credit cards
	
$

	
 
	
 
	
 

	
F
	
Liquidity Ratio (line C divided by (line D minus line E))
	
            :1.00

 

Is line F greater than or equal to the ratio required above as of the end of the quarter?

	
 
	
 
	
 
	
No, not in compliance
	
 
	
 
	
Yes, in compliance

 

No, not in compliance Yes, in compliance

* Applicable only when Borrower’s Bank Liquidity is less than the Liquidity Threshold

 

 

 

 

 

CORPORATE BORROWING CERTIFICATE

 

	
BORROWER:
	
IMPINJ, INC.
	
 
	
DATE:   April 26, 2019

	
BANK:
	
Silicon Valley Bank
	
 
	
 
	
 

 

I hereby certify as follows, as of the date set forth above:

1.I am the Secretary, Assistant Secretary or other officer of the Borrower. My title is as set forth below.

2.Borrower’s exact legal name is set forth above. Borrower is a corporation existing under the laws of the State of Delaware.

3.Attached hereto are true, correct and complete copies of Borrower’s Certificate of Incorporation (including amendments), as filed with the Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 2 above. Such Certificate of Incorporation have not been amended, annulled, rescinded, revoked or supplemented, and remain in full force and effect as of the date hereof.

4.The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized corporate action). Such resolutions are in full force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and Bank may rely on them until Bank receives written notice of revocation from Borrower.

RESOLVED, that any one of the following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower:

 

	
Name
	
 
	
Title
	
 
	
Signature
	
 
	
Authorized to

Add or Remove

Signatories

	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 
	
□

	
 
	
 
	
 
	
 
	
 
	
 
	
□

	
 
	
 
	
 
	
 
	
 
	
 
	
□

	
 
	
 
	
 
	
 
	
 
	
 
	
□

 

RESOLVED FURTHER, that any one of the persons designated above with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower.

RESOLVED FURTHER, that such individuals may, on behalf of Borrower:

Borrow Money. Borrow money from Bank.

Execute Loan Documents. Execute any loan documents Bank requires.

Grant Security. Grant Bank a security interest in any of Borrower’s assets.

Negotiate Items. Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds.

Letters of Credit. Apply for letters of credit from Bank.

Further Acts. Designate other individuals to request advances, pay fees and costs and execute other documents or agreements (including documents or agreement that waive Borrower’s right to a jury trial) they believe to be necessary to effectuate such resolutions.

RESOLVED FURTHER, that all acts authorized by the above resolutions and any prior acts relating thereto are ratified.

 

 

5.The persons listed above are Borrower’s officers or employees with their titles and signatures shown next to their names.

 

	
IMPINJ, INC.

	
 
	
 

	
By:
	
 

	
 
	
 

	
Name:
	
 

	
 
	
 

	
Title:
	
 

 

*** If the Secretary, Assistant Secretary or other certifying officer executing above is designated by the resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower.

I, the                                             of Borrower, hereby certify as to paragraphs 1 through 5 above, as [print title] of the date set forth above.

 

	
By:
	
 

	
 
	
 

	
Name:
	
 

	
 
	
 

	
Title:Exhibit 10.1

 

Share
Purchase Agreement

 

This
share purchase agreement (this “Agreement”) is dated as of July ____, 2019, by and between the investor identified
on the signature page hereto (the “Investor”) and Chicken Soup for the Soul Entertainment, Inc., a Delaware
corporation (the “Company”), whereby the parties agree as follows:

 

WHEREAS,
the Company desires to sell, and the Investor desires to purchase, shares of the Company’s 9.75% Series A cumulative redeemable
preferred stock (“Series A Preferred Stock”).

 

NOW,
THEREFORE, in consideration of the mutual agreements contained herein, the parties hereto agree as follows:

 

1.       Agreement.

 

(a)       Investor
agrees to buy and, subject to acceptance as provided below, the Company agrees to sell and issue to Investor, such number of shares
(the “Shares”) of the Series A Preferred Stock as are set forth on the signature page hereto, for the aggregate
purchase price set forth on the signature page hereto (the “Purchase Price”). The Shares are being offered by
the Company on a private placement basis in reliance upon an exemption from the registration requirements of the Securities Act
of 1933, as amended (the “Act”).

 

(b)       The
Company may accept this Agreement at any time for all or any portion of the Shares subscribed for by executing a copy hereof as
provided and notifying the Investor within a reasonable time thereafter. The Company has the right to reject this Agreement for
the Series A Preferred Stock, in whole or in part for any reason and at any time prior to the Closing (as defined below) thereon,
notwithstanding prior receipt by the Investor of notice of acceptance of the Investor’s Agreement. In the event the Investor’s
Agreement is rejected, the Investor’s payment will be returned from escrow promptly to the Investor without interest or deduction
and this Agreement will have no force or effect The Shares subscribed for herein will not be deemed issued to or owned by the Investor
until one copy of this Agreement has been executed by the Investor and countersigned by the Company and the Closing with respect
to the Investor’s Agreement has occurred. 

 

(c)       Provided
that the full Purchase Price and a completed and manually executed copy of this Agreement have been tendered and not returned in
accordance with Section 2, the closing of Investor’s purchase of the Shares shall occur on or prior to July ___, 2019, which
date may be extended by up to five business days by the Company without notice to the Investor (such date, as may be extended,
the “Closing Date”). Promptly thereafter, the Company shall cause the Shares to be delivered to the Investor,
which delivery shall be made by delivery of physical certificates to Investor. The certificates shall contain a customary restrictive
legend prohibiting sale or transfer of the Shares evidenced thereby except under an effective registration statement filed with
the Securities and Exchange Commission or an exemption from such registration requirements.

 

(d)       The
Investor shall have certain registration rights with respect to the Shares as set forth and prescribed by the registration rights
agreement (the “Registration Rights Agreement”) in the form attached hereto as Exhibit A.

 

2.       Investor
Delivery of Documents and Payment. The Investor hereby tenders to the Company (i) the full Purchase Price by check or wire
transfer and (ii) one completed and manually executed copy of this Agreement and (iii) one completed and manually executed copy
of the Registration Rights Agreement. In the event that the sale of Shares is not consummated for any reason, the Purchase Price
will be returned to the investor without interest or deduction. At the closing of the sale of the Shares prescribed hereby, the
Company shall deliver to the Investor (a) certificates evidencing the Shares, (b) one countersigned copy of this Agreement and
(c) one countersigned copy of the Registration Rights Agreement.

 

3.       Company
Representations and Warranties. The Company represents and warrants to Investor:

 

(a) it has full corporate power and authority
to enter into this Agreement (and the Registration Rights Agreement) and to perform all of its obligations hereunder and thereunder;

 

     

     

    

 

(b) this Agreement (and the Registration
Rights Agreement) has been duly authorized and executed by and, when delivered in accordance with the terms hereof, will constitute
a valid and binding agreement of the Company enforceable in accordance with their respective terms, except as such enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights and remedies of creditors
generally or subject to general principles of equity;

 

(c) the execution and delivery of this Agreement
(and the Registration Rights Agreement) and the consummation of the transactions contemplated hereby and thereby do not conflict
with or result in a breach of (i) the Company’s Amended and Restated Certificate of Incorporation (including the Certificate
of Designations of the Series A Preferred Stock) or Bylaws, or (ii) any material agreement to which the Company is a party or by
which any of its property or assets is bound;

 

(d) the Shares when issued and paid for
in accordance with the terms of this Agreement will be duly authorized, validly issued, fully paid and non-assessable;

 

(e) all preemptive rights or rights of first
refusal held by stockholders of the Company and applicable to the transactions contemplated hereby have been duly satisfied or
waived in accordance with the terms of the agreements between the Company and such stockholders conferring such rights.

 

(f) the Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority
to carry on its business as now conducted and as currently proposed to be conducted. The Company is duly qualified to transact
business and is in good standing in each jurisdiction in which the failure to so qualify would have a material adverse effect on
the business or properties of the Company and its subsidiaries taken as a whole.

 

(g) the Company is not the subject of any
pending or, to its knowledge, threatened or contemplated investigation or administrative or legal proceeding by the Internal Revenue
Service, the taxing authorities of any state or local jurisdiction, or the Securities and Exchange Commission, or any state securities
commission, or any other governmental entity.

 

(h) the Company has timely filed all forms,
and reports and documents with the Securities and Exchange Commission required to be filed by it under the Securities Exchange
Act 1934, as amended (the “Exchange Act”) through the date hereof (collectively, the “SEC Reports”).
Each of the SEC Reports, at the time filed, complied in all material respects with the requirements of the Exchange Act. The Company
has made available to the Investor a copy of the Company’s Form 10-K for the fiscal year ended December 31, 2018, a copy
of the Company’s Forms 10-Q and 8-K.s filed by the Company since January 1, 2019 (the “Most Recent Filings Report”).
There have been no material adverse changes in the Company’s business, prospects, operations or financial condition since
the date of the Most Recent Filings Report. The SEC Reports furnished herewith by the Company to the Investor are referred to collectively
as the “Disclosure Documents.” The financial statements contained in the Disclosure Documents have been prepared in
accordance with generally accepted accounting principles, consistently applied, and fairly present in all material respects the
consolidated financial condition of the Company as of the dates of the balance sheets included therein and the consolidated results
of its operations and cash flows for the periods then ended. Without limiting the foregoing, there are no material liabilities,
contingent or actual that are not disclosed in the Disclosure Documents (other than liabilities incurred by the Company in the
ordinary course of its business, consistent with its past practice, after the periods covered by the Disclosure Documents).

 

4.       Investor
Representations, Warranties and Acknowledgments.

 

(a)The Investor represents and warrants
that: (i) it has full right, power and authority to enter into this Agreement and to perform all of its obligations hereunder;
(ii) this Agreement has been duly authorized and executed by the Investor and, when delivered in accordance with the terms hereof,
will constitute a valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms, except
as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights
and remedies of creditors generally or subject to general principles of equity; (iii) the execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby do not conflict with or result in a breach of (A) the Investor’s
certificate of incorporation or by-laws (or other governing documents), or (B) any material agreement or any law or regulation
to which the Investor is a party or by which any of its property or assets is bound; (iv) it has had full access to the Disclosure
Documents and the Company’s other periodic reports and other information incorporated by reference therein, and was able
to read, review, download and print such materials; (v) in making its investment decision in this offering, the Investor and its
advisors, if any, have relied solely on the Company’s public filings with the Securities and Exchange Commission; and (vi)
it is knowledgeable, sophisticated and experienced in making, and is qualified to make, decisions with respect to investments in
securities representing an investment decision like that involved in the purchase of the Shares.

 

     

     

    

 

(b)The Investor also represents
and warrants that, other than the transactions contemplated hereunder, the Investor has not directly or indirectly, nor has any
person acting on behalf of or pursuant to any understanding with the Investor, executed any “short sales” as defined
in Rule 200 of Regulation SHO under the Securities Exchange Act of 1934 (the “Short Sales”), in the securities
of the Company during the period commencing from the time that the Investor first became aware of the proposed transactions contemplated
hereunder until the date hereof. The Investor has maintained the confidentiality of all disclosures made to it in connection with
this transaction (including the existence and terms of this transaction).

 

(c)The Investor hereby represents
and warrants to the Company that it is an “accredited investor,” as defined in Rule 501 of Regulation D, and has marked
the applicable box set forth in Section 9 of this Agreement signifying such status.

 

(d)The Investor is acquiring the
Shares solely for investment purposes for the Investor’s own account (or for beneficiaries’ accounts over which the
Investor has investment discretion but no discretionary authority as to voting or disposition) and not with a view to a distribution
of all or any part thereof. The Investor is aware that there are legal and practical limits on its ability to sell or dispose of
the Shares and therefore, that the Investor must bear the economic risk of its investment for an indefinite period of time.

 

(e)The Shares were not offered to
the Investor through, and the Investor is not aware of, any form of general solicitation or general advertising, including, without
limitation, (i) any advertisement, articles, notice or other communication published in any newspaper, magazine or similar media
or broadcast over television or radio, and (ii) any seminar or meeting whose attendees have been invited by any general solicitation
or general advertising.

 

(f)The Investor understands that
the issuance of the Shares has not been registered and the Shares therefore are “restricted securities” under the federal
securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering, and that,
under such laws and applicable regulations, such securities may not be transferred or resold without registration under the Securities
Act or pursuant to an exemption therefrom. In this connection, the Investor represents that it is familiar with Rule 144 under
the Securities Act, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act.

 

5.       Investor
Covenant Regarding Short Sales and Confidentiality. The Investor covenants that neither it nor any affiliates acting on its
behalf or pursuant to any understanding with it will execute any Short Sales of securities of the Company during the period from
the date hereof and ending at the time that the transactions contemplated by this Agreement are first publicly announced through
a press release and/or Form 8-K. The Investor covenants that until such time as the transactions contemplated by this Agreement
are publicly disclosed by the Company through a press release and/or Form 8-K, the Investor will maintain the confidentiality of
all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).

 

6.       Miscellaneous.

 

(a)The Company will reimburse Investor
$80,000 for due diligence fees, legal fees and other related expenses incurred by it in connection with this transaction. This
Agreement (and the Registration Rights Agreement) constitute the entire understanding and agreement between the parties with respect
to its subject matter, and there are no agreements or understandings with respect to the subject matter hereof which are not contained
in this Agreement and the Registration Rights Agreement. This Agreement may be modified only in writing signed by the parties hereto.

 

     

     

    

 

(b)This Agreement may be executed
in counterparts, all of which taken together shall constitute one and the same instrument and shall become effective when counterparts
have been signed by each party and delivered to the other parties hereto, it being understood that all parties need not sign the
same counterpart. Execution may be made by delivery by facsimile.

 

(c)The provisions of this Agreement
are severable and, in the event that any court or officials of any regulatory agency of competent jurisdiction shall determine
that any one or more of the provisions or part of the provisions contained in this Agreement shall, for any reason, be held to
be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other
provision or part of a provision of this Agreement and this Agreement shall be reformed and construed as if such invalid or illegal
or unenforceable provision, or part of such provision, had never been contained herein, so that such provisions would be valid,
legal and enforceable to the maximum extent possible, so long as such construction does not materially adversely affect the economic
rights of either party hereto.

 

(d)All communications hereunder,
except as may be otherwise specifically provided herein, shall be in writing and shall be mailed, hand delivered, sent by a recognized
overnight courier service such as Federal Express, or sent via facsimile and confirmed by letter, to the party to whom it is addressed
at the following addresses or such other address as such party may advise the other in writing:

 

To the Company: as set forth on the
signature page hereto.

 

To the Investor: as set forth on the
signature page hereto.

 

All notices hereunder shall be effective upon
receipt by the party to which it is addressed.

 

(e)This Agreement shall be governed
by and interpreted in accordance with the laws of the State of Connecticut for contracts to be wholly performed in such state and
without giving effect to the principles thereof regarding the conflict of laws. To the extent determined by such court, the prevailing
party shall reimburse the other party for any reasonable legal fees and disbursements incurred in enforcement of, or protection
of any of its rights under this Agreement.

 

     

     

    

 

If the foregoing correctly sets forth our
agreement, please confirm this by signing and returning to us the duplicate copy of this Agreement.

 

 

Number of Shares: 40,000

Purchase Price Per Share: $25.00

Aggregate Purchase Price: $1,000,000

 

INVESTOR:

[ENTITY]

 

	By:  	 

Name:

Title:

 

Address for Notice:

 

CHICKEN SOUP FOR THE SOUL ENTERTAINMENT, INC.

 

	By:  	 

Name: William J. Rouhana, Jr.

Title: Chairman and CEO

 

Address for Notice:

132 E. Putnam Ave

Cos Cob CT

Facsimile:

Attention: CEO

 

     

     

    

 

EXHIBIT A

 

REGISTRATION RIGHTS AGREEMENT

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