Document:

ex10_59.htm

Exhibit 10.59

AMENDMENT NO. 3 TO

FIRST AMENDED AND RESTATED OPERATING AGREEMENT OF

LIQUIDMETAL COATINGS, LLC

This is Amendment No. 3 (this “Amendment”) to the First Amended and Restated Operating Agreement of Liquidmetal Coatings, LLC, dated February 22, 2008, as amended by Amendment No. 1 thereto dated October 6, 2009 and Amendment No. 2 thereto dated April 30, 2010 (the “Operating Agreement”) entered into among Liquidmetal Coatings, LLC, a Delaware limited liability company (the “Company”), Liquidmetal Technologies, Inc., a Delaware corporation (“LMT”), C3 Capital Partners, L.P., a Delaware limited liability company (“C3”), C3 Capital Partners II, L.P., a Delaware limited liability company (“C3 II” and together with C3, the “C3 Entities”), Larry Buffington, an individual (“Larry Buffington”), and Global Strategy & Capital Group, Inc. D.B.A CRESO Capital Partners (“CRESO”).  Capitalized terms not otherwise defined in this Amendment shall have the meaning ascribed to such terms in the Operating Agreement.  This Amendment is dated as of November 15, 2010.

RECITALS

WHEREAS, simultaneously with the execution of this Agreement, the Members will make additional capital contributions to the Company in the following amounts  (the “Additional Capital Contributions”) in exchange for the number of additional Common Units set forth next to each Member’s name in the following table (the “Additional Units”).

	
Member

	
Additional Capital Contributions

	
Additional Units

	
Liquidmetal Technologies, Inc.

	
$1,083,540.77

	
154,441.98 Class A Common Units

	
C3 Capital Partners, L.P.

	
$209,091.29

	
29,802.73 Class B Common Units

	
C3 Capital Partners II, L.P.

	
$151,410.94

	
21,581.29 Class B Common Units

	
TOTAL:

	
$1,444,043.00

	
205,826.00 Common Units

WHEREAS, simultaneously with the execution of this Agreement and the delivery of the Additional Capital Contributions to the Company, the Members and the Company desire to, effective as of the date hereof, (1) make a distribution to the holders of the Company’s Preferred Units in the aggregate amount of $812,862.61, which represents the accrued but unpaid Priority Return of the Preferred Units as of the date hereof, and (2) redeem an aggregate $381,180.39 Preferred Units owned by the C3 Entities at an aggregate redemption price of $1,194,043.00 (the “Redemption”).

WHEREAS, the Members and the Company desire to hereby amend the Operating Agreement to reflect the Additional Capital Contributions, the Redemption and the issuance of the Additional Units and to make certain other changes to the Operating Agreement, as set forth below.

  

  

  

WHEREAS, although the Company, LMT, the C3 Entities, and Larry Buffington previously executed a document entitled Amendment No. 3 to First Amended and Restated Operating Agreement of Liquidmetal Coatings, LLC, dated August 4, 2010, such document never became effective and was never a part of, or an amendment to, the Operating Agreement.

NOW THEREFORE, in consideration of the mutual covenants herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

	
1.

	
Amendment of Exhibit A.  Exhibit “A” to the Operating Agreement is hereby amended by deleting the table set forth therein in its entirety and replacing it with the table set forth in Exhibit “A” to this Amendment.

	
2.

	
Distribution to the Preferred Unit Holders.  Simultaneously herewith, the Company shall make an aggregate distribution of [   ] to the Preferred Unit Holders, which shall be allocated among the Preferred Unit Holders in proportion to their respective remaining Preferential Return Accounts.

	
 

	
3.

	
Redemption of Preferred Units.  Simultaneously herewith, the Company shall redeem, and the C3 Entities shall each offer for redemption, [ ] Preferred Units from C3 and [ ] Preferred Units from C3II, respectively, for an aggregate redemption price of [   ].  Each of C3 and C3 II shall, simultaneously herewith, deliver to the Company the unit certificates, endorsed by each such C3 Entity, representing the Preferred Units, and the Company shall cancel such certificates and issue to each of the C3 Entities a new unit certificate representing the number of Preferred Units owned by each such C3 Entity following the Redemption, as reflected in Exhibit “A”.

	
 

	
4.

	
Amendment of Section 3.8(b).  Section 3.8(b) of the Operating Agreement is hereby amended by deleting the first sentence of the second paragraph of said section in its entirety and replacing it with the following:

“In the event that either or both C3 Capital Partners, L.P. or C3 Capital Partners II, L.P. (the “C3 Entities”), as initial Preferred Unit Holders, are not redeemed in full by the Company by December 31, 2011, the Company will initiate a  private unit offering to the then-existing members of the Company for an amount of proceeds that will be adequate to fully redeem the Preferred Units held by the C3 Entities.  This private unit offering will be initiated on January 1, 2012, and the Company will use reasonable commercial efforts to close such offering on or before January 31, 2012.  If the Company is not able to redeem in full the Preferred Units held by the C3 Entities, then the Company shall issue to the C3 Entities collectively an aggregate additional number of Class B Units as shall be equal to 12% of the Common Units then outstanding.  In addition, thereafter on the last business day of each calendar quarter starting with March 31, 2012, so long as any C3 Entity continues to own Preferred Units on such date, the Company shall issue to the C3 Entities collectively that number of aggregate additional Class B Units equal to 2% of the Common Units then outstanding (the “Equity Payment”).

  

  

  

	
5.

	
Reaffirmation of Operating Agreement.  Except as modified by this Amendment, the Operating Agreement is hereby reaffirmed in every respect.

	
6.

	
Counterparts, Facsimiles.  This Amendment may be executed in counterparts.  Each executed counterpart of this Amendment will constitute an original document, and all executed counterparts, together, will constitute the same agreement.  Any counterpart evidencing signature by one party that is delivered by telecopy by such party to the other party hereto shall be binding on the sending party when such telecopy is sent, and such sending party shall within the days thereafter deliver to the other parties a hard copy of such executed counterpart containing the original signature of such party or its authorized representative.

[signatures follow]

  

  

  

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first set forth hereinabove.

	  	
COMPANY:

	  	  	  	  	  
	  	
LIQUIDMETAL COATINGS, LLC

	  	  	  	  	  
	  	
By:

	
/s/ Larry Buffington

	  
	  	  	
Name:

	
Larry Buffington

	  	  	
Title:

	
President and CEO

	  	  	  	  	  
	  	
PREFERRED MEMBERS:

	  	  	  	  	  
	  	
C3 CAPITAL PARTNERS, L.P.

	  	  	  	  	  
	  	
By:

	
Its General Partner

	  	  	  	  	  
	  	  	  	
C3 Partners, LLC, a Delaware

	  	  	  	
limited liability company

	  	  	  	  	  
	  	
By:

	
/s/ R. L. SmithJr.

	  
	  	
Print Name:  

	
Robert L. Smith Jr.

	  	
Title:

	
Manager

	  	  	  	  	  
	  	
C3 CAPITAL PARTNERS II, L.P.

	  	  	  	  	  
	  	
By:

	
Its General Partner

	  	  	  	  	  
	  	  	  	
C3 Partners II, LLC, a Delaware

	  
	  	  	  	    limited liability company	
 

	  	  	  	  	  
	  	
By:

	
/s/ R. L. SmithJr.

	  
	  	
Print Name:  

	
Robert L. Smith Jr.

	  	
Title:

	
Manager

[Signatures Continue on Following Page]

  

  

  

	  	
COMMON MEMBERS:

	  	  	  	  	 
	  	
CLASS A HOLDER:

	  	
LIQUIDMETAL TECHNOLOGIES, INC.

	  	  	  	  	 
	  	  	
/s/ Thomas Steipp

	 
	  	
By:

	
Thomas Steipp

	 
	  	
Title:

	
CEO

	 
	  	  	  	  	 
	  	
CLASS B HOLDERS:

	  	
C3 CAPITAL PARTNERS, L.P.

	  	  	  	  	 
	  	
By: Its General Partner

	  	  	  	  	 
	  	  	  	
C3 Partners, LLC, a Delaware

	 
	  	  	  	
limited liability company

	 
	  	  	  	  	 
	  	
By:

	
/s/ R.L. Smith Jr.

	 
	  	
Print Name:  

	
Robert Smith Jr.

	 
	  	  	  	  	 
	  	
Title:

	Manager	 
	  	  	  	  	 
	  	
C3 CAPITAL PARTNERS II, L.P.

	  	  	  	  	 
	  	
By: Its General Partner

	  	  	  	  	 
	  	  	  	
C3 Partners II, LLC, a Delaware

	 
	  	  	  	
limited liability company

	 
	  	  	  	  	 
	  	
By:

	
/s/ R.L. Smith Jr.

	 
	  	
Print Name:  

	
Robert Smith Jr.

	 
	  	
Title:

	
Manager

	 
	  	  	  	  	 
	  	
LARRY BUFFINGTON

	  	  	  	  	 
	  	
/s/ Larry Buffington

	 
	  	
Larry Buffington

	 
	  	  	  	  	 
	  	
GLOBAL STRATEGY & CAPITAL GROUP, INC.

	  	
D.B.A. CRESO CAPITAL PARTNERS

	  	  	  	  	 
	  	
By:

	
/s/ Thomas Papa

	 
	  	
Print Name:  

	
/s/ Thomas Papa

	 
	  	
Title:

	
Principal

	 

[Signatures Continue on Following Page]

  

  

  

	  	
CLASS C HOLDERS:

	  	  	  	  	 
	  	
LARRY BUFFINGTON

	  	  	  	  	 
	  	
/s/ Larry Buffington

	 
	  	
Larry Buffington

	  	  	  	  	 
	  	
GLOBAL STRATEGY & CAPITAL GROUP, INC.

	  	
D.B.A. CRESO CAPITAL PARTNERS

	  	  	  	  	 
	  	
By:

	
/s/ Thomas Papa

	 
	  	
Print Name:  

	
/s/ Thomas Papa

	 
	  	
Title:

	
Principal

	 

  

  

  

Exhibit “A”

	
Members

	 	
Initial Capital Contribution

	 	
Additional Capital Contribution1

	 	
Number and Class of Units

	 	
Percentage Interest

	 	 	 	 	 	 	 	 	 
	
PREFERRED UNIT HOLDERS

	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	
C3 Capital Partners, LP, a Delaware

limited partnership

 

C3 Capital, LLC

4520 Main Street

Suite 1600

Kansas City, Missouri 64111

Attn:  Robert L. Smith

Facsimile: 816-756-5552

	 	
$1,450,000

	 	
N/A

	 	
1,106.72 Preferred Units*

	 	
NONE**

	  	 	  	 	  	 	  	 	  
	
C3 Capital Partners II, LP, a

Delaware limited partnership

 

C3 Capital, LLC

4520 Main Street

Suite 1600

Kansas City, Missouri 64111

Attn:  Robert L. Smith

Facsimile: 816-756-5552

	 	
$1,050,000

	 	
N/A

	 	
 801.42 Preferred Units*

	 	
NONE**

	  	 	  	 	  	 	  	 	  
	
TOTALS

	 	
$2,500,000

	 	  	 	
1,908.13 Preferred Units*

	 	  
	  	 	  	 	  	 	  	 	  
	
COMMON UNIT HOLDERS

	 	  	 	  	 	  	 	  
	  	 	  	 	  	 	  	 	  
	
Liquidmetal Technologies, Inc., a

Delaware corporation

 

30452 Esperanza

Rancho Santa Margarita, California 92688

Attention:  Legal Department

Fax No.:  813.314.0270

	 	
$4,027,335

	 	
$1,083,540.77

	 	
201,878.23

Class A Common Units***

	 	
72.86%

  

  

  

	
Members

	 	
Initial Capital Contribution

	 	
Additional Capital Contribution1

	 	
Number and Class of Units

	 	
Percentage Interest

	  	 	  	 	  	 	  	 	  
	
C3 Capital Partners, LP, a Delaware

limited partnership

 

C3 Capital, LLC

4520 Main Street

Suite 1600

Kansas City, Missouri 64111

Attn:  Robert L. Smith

Facsimile: 816-756-5552

	 	
$635,848.00

	 	
$209,091.29

	 	
38,956.52

Class B Common Units****

	 	
14.06%

	  	 	  	 	  	 	  	 	  
	
C3 Capital Partners II, LP, a Delaware limited partnership

 

C3 Capital, LLC

4520 Main Street

Suite 1600

Kansas City, Missouri 64111

Attn:  Robert L. Smith

Facsimile: 816-756-5552

	 	
$457,742.00

	 	
$151,410.94

	 	
28,209.90

Class B Common Units****

	 	
10.18%

	  	 	  	 	  	 	  	 	  
	
Larry Buffington

 

25422 Vinechase Drive

Porter, TX 77365

Fax No. (281) 348-0863

	 	
$65,000.00

	 	
$0

	 	
5,850.00

Class B Common Units*****

 

1,000

Class C Common Units

	 	
2.47%

	  	 	  	 	  	 	  	 	  
	
Global Strategy & Capital Group,

Inc. d.b.a. CRESO Capital Partners

 

660 Newport Center Drive, Suite 800

Newport Beach, CA 92660

Fax No. (949) 209-5441

Attn:  Thomas Papa

	 	
$11,375.00

	 	
$0

	 	
1,023.75

Class B Common Units******

 

175

Class C Common Units

	 	
0.43%

	  	 	  	 	  	 	  	 	  
	
TOTALS

	 	
$5,197,300.00

	 	
$1,444,043.00

	 	
277,093.40 Common Units

	 	
100.00%

* Issued pursuant to that certain Securities Purchase Agreement, dated July 24, 2007, between the Company, C3 Capital Partners, L.P., and C3 Capital Partners II, L.P. , and reflects the redemption of 221.08 and 160.10 Preferred Units owned by C3 Capital Partners, L.P.  and C3 Capital Partners II, L.P., respectively, by the Company pursuant to this Amendment No. 3 to First Amended and Restated Operating Agreement of Liquidmetal Coatings, LLC.

  

  

  

**Preferred Unit Holders shall have zero percentage interests in the Company.  All of the Preferred Unit Holders’ rights to certain allocations and distributions are provided for in the Operating Agreement.

***Issued pursuant to that certain Asset Purchase and Contribution Agreement, dated July 24, 2007, between the Company and Liquidmetal Technologies, Inc. and Amendment No. 1 to First Amended and Restated Operating Agreement of Liquidmetal Coatings, LLC dated October 6, 2009.

****Issued pursuant to that certain Securities Purchase Agreement, dated July 24, 2007, between the Company, C3 Capital Partners, L.P., and C3 Capital Partners II, L.P. and Amendment No. 1 to First Amended and Restated Operating Agreement of Liquidmetal Coatings, LLC dated October 6, 2009.

*****Issued pursuant to that certain Employment Agreement, dated July 24, 2007, between the Company and Larry Buffington and Amendment No. 1 to First Amended and Restated Operating Agreement of Liquidmetal Coatings, LLC dated October 6, 2009.

******Issued as consideration for placement agent services and Amendment No. 1 to First Amended and Restated Operating Agreement of Liquidmetal Coatings, LLC dated October 6, 2009..PROMISSORY NOTE

	
$100,000.00

	
As of February 25, 2011

Trio Merger Corp. (“Maker”) promises to pay to the order of Eric S. Rosenfeld (“Payee”) the principal sum of One Hundred Thousand Dollars and No Cents ($100,000.00) in lawful money of the United States of America, on the terms and conditions described below.  This Note supersedes and replaces all outstanding notes from Maker to Payee.

 

1.           Principal.  The principal balance of this Note shall be repayable on the earlier of (i) February 25, 2012, (ii) the date on which Maker consummates an initial public offering of its securities (“IPO”) or (iii) the date on which Maker determines to not proceed with such IPO.

 

2.           Interest.  No interest shall accrue on the unpaid principal balance of this Note.

 

3.           Application of Payments.  All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due under this Note, including (without limitation) reasonable attorneys’ fees, then to the payment in full of any late charges and finally to the reduction of the unpaid principal balance of this Note.

 

4.           Events of Default.  The following shall constitute Events of Default:

 

(a)           Failure to Make Required Payments.  Failure by Maker to pay the principal of this Note within five (5) business days following the date when due.

 

(b)           Voluntary Bankruptcy, Etc.  The commencement by Maker of a voluntary case under the Federal Bankruptcy Code, as now constituted or hereafter amended, or any other applicable federal or state bankruptcy, insolvency, reorganization, rehabilitation or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or the making by it of any assignment for the benefit of creditors, or the failure of Maker generally to pay its debts as such debts become due, or the taking of corporate action by Maker in
furtherance of any of the foregoing.

 

(c)           Involuntary Bankruptcy, Etc.  The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of maker in an involuntary case under the Federal Bankruptcy Code, as now or hereafter constituted, or any other applicable federal or state bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering the winding-up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days.

 

  

  

  

5.           Remedies.

 

(a)           Upon the occurrence of an Event of Default specified in Section 4(a), Payee may, by written notice to Maker, declare this Note to be due and payable, whereupon the principal amount of this Note, and all other amounts payable thereunder, shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding.

 

(b)           Upon the occurrence of an Event of Default specified in Sections 4(b) and 4(c), the unpaid principal balance of, and all other sums payable with regard to, this Note shall automatically and immediately become due and payable, in all cases without any action on the part of Payee.

 

6.           Waivers.  Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor, protest, and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by Payee under the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting any property, real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or sale under execution, or providing for any stay of execution, exemption from civil process, or extension of time for payment; and Maker agrees that any real
estate that may be levied upon pursuant to a judgment obtained by virtue hereof, on any writ of execution issued hereon, may be sold upon any such writ in whole or in part in any order desired by Payee.

 

7.           Unconditional Liability.  Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to by Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted by Payee with respect to the payment or other provisions of this Note, and agree that additional makers, endorsers, guarantors, or sureties may become parties
hereto without notice to them or affecting their liability hereunder.

 

8.           Notices.  Any notice called for hereunder shall be deemed properly given if (i) sent by certified mail, return receipt requested, (ii) personally delivered, (iii) dispatched by any form of private or governmental express mail or delivery service providing receipted delivery, (iv) sent by telefacsimile or (v) sent by e-mail, to the following addresses or to such other address as either party may designate by notice in accordance with this Section:

If to Maker:

Trio Merger Corp.

825 Third Avenue, 40th Floor

New York, New York 10022

If to Payee:

Eric S. Rosenfeld

825 Third Avenue, 40th Floor

New York, New York 10022

 

  

2

  

Notice shall be deemed given on the earlier of (i) actual receipt by the receiving party, (ii) the date shown on a telefacsimile transmission confirmation, (iii) the date on which an e-mail transmission was received by the receiving party’s on-line access provider (iv) the date reflected on a signed delivery receipt, or (vi) two (2) Business Days following tender of delivery or dispatch by express mail or delivery service.

 

9.           Construction.  This Note shall be construed and enforced in accordance with the domestic, internal law, but not the law of conflict of laws, of the State of New York.

 

10.         Severability.  Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

IN WITNESS WHEREOF, Maker, intending to be legally bound hereby, has caused this Note to be duly executed by its ___________ the day and year first above written.

	  	
TRIO MERGER CORP.

	  	  
	  	
By:

	  	  
	  	  	
Name:

	  	  	
Title:

  

3

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