Document:

CPI AEROSTRUCTURES, INC. 10-K

EXHIBIT
4.1

 

DESCRIPTION
OF REGISTRANT’S SECURITIES

REGISTERED
PURSUANT TO SECTION 12 OF THE

SECURITIES
EXCHANGE ACT OF 1934

 

The
following description of the securities of CPI Aerostructures, Inc. (the “Company”, “we”, “our”
or similar terms) is based upon the Company’s amended and restated certificate of incorporation (“Charter”),
the Company’s bylaws (“Bylaws”) and applicable provisions of law. We have summarized certain portions of the
Charter and Bylaws below. The summary is not complete and is subject to, and is qualified in its entirety by express reference
to, the provisions of our Charter and Bylaws, each of which is filed as an exhibit to the Annual Report on Form 10-K of which
this Exhibit 4.1 is a part.

 

Authorized
Capital Stock

 

Pursuant
to our Charter, our authorized capital stock consists of 55,000,000 shares, of which 50,000,000 is voting Common Stock, $0.0001
par value per share, and 5,000,000 is Preferred Stock, $0.001 par value per share.

 

Common
Stock

 

Authorization. The
outstanding shares of the Company’s common stock are duly authorized, validly issued, fully paid and nonassessable.

 

Listing. The
Company’s common stock is traded on the NYSE American exchange under the ticker symbol “CVU.”

 

Voting
Rights. Common stockholders of record are entitled to one vote for each share held on all matters to be voted on by stockholders.

 

Preemptive
Rights, Etc. Our stockholders have no preemptive or other subscription rights. There are no sinking fund provisions applicable
to our common stock, except that upon the consummation of our initial business combination, subject to the limitations described
herein, we will provide our stockholders with the opportunity to redeem their shares of our common stock for cash equal to their
pro rata share of the aggregate amount then on deposit in the trust account.

 

Preferred
Stock

 

Our
Charter provides that shares of preferred stock may be issued from time to time in one or more series. Our board of directors
will be authorized to fix the voting rights, if any, designations, powers, preferences, the relative, participating, optional
or other special rights and any qualifications, limitations and restrictions, applicable to the shares of each series. Our board
of directors will be able, without stockholder approval, to issue preferred stock with voting and other rights that could adversely
affect the voting power and other rights of the holders of the common stock and could have anti-takeover effects.

 

We
currently have no preferred stock issued or outstanding.

 

Provisions
of New York Law and Our Charter and Bylaws

 

Certain
provisions of New York law and of our Charter and Bylaws could make our acquisition by a third party, a change in our incumbent
management, or a similar change of control more difficult. The provisions described below, and the board of directors’ right
to issue shares of our preferred stock from time to time in one or more classes or series without shareholder approval, as described
above, may discourage certain types of coercive takeover practices and inadequate takeover bids and encourage persons seeking
to acquire control of us to first negotiate with our board of directors. We believe that these provisions help to protect our
potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure us, and that
this benefit outweighs the potential disadvantages of discouraging such a proposal because our ability to negotiate with the proponent
could result in an improvement of the terms of the proposal.

 

     

     

    

 

Classified
Board of Directors. Our board of directors is divided into three classes. The members of each class are elected for a term
of three years and only one class of directors is elected annually. Thus, it would take at least two annual elections to replace
a majority of our board of directors. Nominations for our board of directors may be made by our board or, in certain situations,
by any holder of common stock. A shareholder entitled to vote for the election of directors may nominate a person for election
as director only if the shareholder provides written notice of his nomination to our secretary not later than 120 days in advance
of the same day and month that our proxy statement was released to shareholders in connection with the previous year’s annual
meeting of shareholders or, if no annual meeting was held in the previous year, then by the end of the fiscal year to which the
annual meeting in which the nomination will be made relates to.

 

Stockholder
Meetings. A special meeting of our shareholders may be called only by our board of directors or our chairman of the board,
if one has been elected, or our president. Any action required or permitted to be taken by a vote of our shareholders may be taken
without a meeting by written consent, except that such written consent must be signed by the holders of all of the shares entitled
to vote thereon.

 

New
York anti-takeover law. We are subject to certain “business combination” provisions of Section 912 of the NYBCL
and expect to continue to be so subject if and for so long as we have a class of securities registered under Section 12 of the
Exchange Act. Section 912 provides, with certain exceptions, that a New York corporation may not engage in a “business combination”
(e.g., merger, consolidation, recapitalization or disposition of stock) with any “interested shareholder” for a period
of five years from the date that such person first became an interested shareholder unless the business combination or the transaction
resulting in a person becoming an interested shareholder was approved by the board of directors of the corporation prior to that
person becoming an interested shareholder. No New York corporation may engage at any time in any business combination with an
interested shareholder other than (i) a business combination that is approved by the board of directors of the corporation prior
to that person becoming an interested shareholder, or where the transaction resulting in a person becoming an interested shareholder
was approved by the board of directors of the corporation prior to that person becoming an interested shareholder; (ii) a business
combination that is approved by a majority of the outstanding stock not held by the interested shareholder or an affiliate of
the interested shareholder at a meeting called no earlier than five years after the interested shareholder’s stock acquisition
date; or (iii) the business combination that meets certain valuation requirements for the consideration paid. An “interested
shareholder” is defined as any person who (a) is the beneficial owner of 20% or more of the outstanding voting stock of
a New York corporation or (b) is an affiliate or associate of a corporation that at any time during the prior five years was the
beneficial owner, directly or indirectly, of 20% or more of the then outstanding voting stock. A “business combination”
includes mergers, asset sales and other transactions resulting in a financial benefit to the interested shareholder. The “stock
acquisition date,” with respect to any person and any New York corporation, means the date that such person first becomes
an interested shareholder of such corporation.CPI AEROSTRUCTURES, INC. 10-K

EXHIBIT 10.4.3

 

SECOND
AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

SECOND
AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (the “Amendment”) entered into as of July 13, 2017 by
and between CPI AEROSTRUCTURES, INC. (the “Borrower”), and BANKUNITED, N.A., a national banking association,
as Sole Arranger, Agent, and a Lender, CITIZENS BANK, N.A., a national banking association, as a Lender, and the other financial
institutions from time to time parties thereto as lenders (collectively, the “Lender”), BANKUNITED, N.A., a
national banking association, as administrative agent and collateral agent for the Lender thereunder (in such capacities, the
“Administrative Agent” and the “Collateral Agent,” respectively and each an “Agent”).

 

WHEREAS,
the Borrower, the Agent and the Lender are parties to that Amended and Restated Credit Agreement dated as of March 24, 2016,
as amended by that First Amendment and Waiver to Amended and Restated Credit Agreement dated as of May 9, 2016, as same may be
hereafter amended and modified (the “Agreement”); and

 

WHEREAS,
the Borrower has requested that the Agent and the Lender amend certain provisions of the Agreement; and

 

WHEREAS,
the Agent and the Lender is willing to accede to such request to amend certain terms of the Agreement, subject to the terms
and conditions hereinafter set forth.

 

NOW,
THEREFORE, in consideration of the premises and the agreements hereinafter set forth and for other good and valuable consideration,
the parties hereto hereby agree as follows:

 

1.           All
capitalized terms used herein, unless otherwise defined herein, have the same meanings provided therefor in the Agreement.

 

2.           Subject
to the terms and conditions hereof, the Agreement is hereby amended as follows:

 

(A)       Section
1.1 of the Agreement (Defined Terms) is amended by deleting the following definitions and substituting the following therefor:

 

“Sold
Receivables”: shall mean the accounts receivable of (i) United Technologies Corporation and (ii) Triumph Group, Inc.,
as further described in Section 7.6(d).

 

(B)       Section
7.3(m) of the Agreement is amended by deleting same and substituting the following therefor:

 

“(m)
Liens upon the Sold Receivables; in connection with the sales described in Section 7.6(d) below; and”

 

    

     

    

 

(C)       Section
7.6(d) of the Agreement is amended by deleting same and substituting the following therefor:

 

“(d)       the sale of the Sold Receivables of (i) United Technologies Corporation to Citibank, N.A. and (ii) Triumph Group, Inc. to Orbian
Financial Services VII, LLC.”

 

(D)       Except
as amended herein, all other provisions of the Agreement and the Loan Documents shall remain in full force and effect, and are
hereby ratified.

 

3.           The
Lender and the Borrower agree that as of July 11, 2017, the aggregate outstanding principal amount of: (i) the Revolving Credit
Loans as evidenced by each Revolving Credit Note is $24,238,684.58, and (ii) the Term Loan as evidenced by each Term Loan Note
is $9,125,000.00.

 

4.           The
Borrower hereby represents and warrants to the Lender that:

 

(a)       Each
and every of the representations and warranties set forth in the Agreement is true as of the date hereof and with the same effect
as though made on the date hereof, and is hereby incorporated herein in full by reference as if fully restated herein in its entirety;
provided, however, that the September 30, 2015 date in Sections 4.1 and 4.2 shall be deemed to be March 31, 2017.

 

(b)       No
Default or Event of Default and no event or condition which, with the giving of notice or lapse of time or both, would constitute
such a Default or Event of Default, now exists or would exist after giving effect hereto.

 

(c)       There
are no defenses or offsets to the Borrower’s obligations under the Agreement, the Notes or the Loan Documents or any of
the other agreements in favor of the Lender referred to in the Agreement.

 

(d)       The
WHEREAS clauses set forth hereinabove are true and correct.

 

5.           It
is expressly understood and agreed that all collateral security for the Loans and other extensions of credit set forth in the
Agreement prior to the amendment provided for herein is and shall continue to be collateral security for the Loans and other extensions
of credit provided in the Agreement as herein amended, including (without limitation) Borrower’s obligations under the Master
Agreement. Without limiting the generality of the foregoing, the Borrower hereby absolutely and unconditionally confirms that
each Loan Document, document and instrument executed by the Borrower pursuant to the Agreement continues in full force and effect,
is ratified and confirmed and is and shall continue to be applicable to the Agreement (as herein amended).

 

6.           The
amendments set forth herein are limited precisely as written. Whenever the Agreement is referred to in the Amendment, the Loan
Documents or any of the instruments, agreements or other documents or papers executed and delivered in connection therewith, it
shall be deemed to mean the Agreement as modified by this Amendment.

 

    2

     

    

 

7.           The
Borrower agrees to pay on demand, and the Agent may charge any deposit or loan account(s) of the Borrower, all expenses (including
reasonable attorney’s fees) incurred by the Lender in connection with the negotiation and preparation of the Agreement as
amended hereby.

 

8.           This
Amendment shall become effective on such date as all of the following conditions shall be satisfied retroactive to the date hereof:

 

(a)        The
Agent shall have received four (4) executed, original counterparts of this Amendment.

 

(b)       The
Agent shall have received executed counterparts of any action (in form and substance satisfactory to the Agent and its counsel)
taken by the Borrower to authorize the execution, delivery and performance of this Amendment and such other documents as the Lender
or its counsel may require.

 

(c)        Payment
by the Borrower of Lender’s Amendment fee in the amount of $15,000.00, together with all out of pocket costs, expenses
and reasonable attorneys’ fees incurred by the Agent in connection with this Amendment and the related documents.

 

9.           This
Amendment is dated as of the date set forth in the first paragraph hereof and shall be effective (after satisfaction of the conditions
set forth in paragraph 8 above) on the date of execution by the Agent and the Lender, retroactive to such date.

 

10.         This
Amendment may be executed in counterparts, each of which shall constitute an original, and each of which taken together shall
constitute one and the same agreement.

 

[NO
FURTHER TEXT ON THIS PAGE]

 

    3

     

    

 

SIGNATURE
PAGE 

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective duly
authorized officers as of the date first above written.

	 	 	 
	 	CPI AEROSTRUCTURES, INC.,

                    as Borrower

	 	 	 
	 	By:	/s/Vincent Palazzolo
	 	Name: Vincent Palazzolo
	 	Title: CFO
	 	 
	 	BANKUNITED, N.A., 

as Arranger, Agent,
    and a Lender
	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 
	 	BANKUNITED, N.A., 

as Administrative
    Agent and Collateral Agent
	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 
	 	CITIZENS BANK, N.A., 

as a Lender
	 	 
	 	By:	 
	 	Name:
	 	Title:

    4

     

    

SIGNATURE
PAGE 

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective duly
authorized officers as of the date first above written.

	 	 	 
	 	CPI AEROSTRUCTURES, INC., 

as Borrower
	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 
	 	BANKUNTTED, N.A., 

as Arranger, Agent,
    and a Lender
	 	 
	 	By:	/s/ Christine Gerula
	 	Name: Christine Gerula
	 	Title: Senior Vice President
	 	 
	 	BANKUNTTED, N.A., 

as Administrative
    Agent and Collateral Agent
	 	 
	 	By:	/s/ Christine Gerula
	 	Name: Christine Gerula
	 	Title: Senior Vice President
	 	 
	 	CITIZENS BANK, N.A., 

as a Lender
	 	 	 
	 	By:	 
	 	Name:
	 	Title:

    4 

     

    

 

SIGNATURE
PAGE 

SECOND AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective duly
authorized officers as of the date first above written.

	 	 	 
	 	CPI AEROSTRUCTURES, INC., 

as Borrower
	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 
	 	BANKUNTTED,N.A., 

as Arranger, Agent,
    and a Lender
	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 
	 	BANKUNTTED, N.A., 

as Administrative
    Agent and Collateral Agent
	 	 
	 	By:	 
	 	Name:
	 	Title:
	 	 
	 	CITIZENS BANK, N.A.,

 as a Lender
	 	 	 
	 	By:	/s/ Chancellor
    Peterson
	 	Name: Chancellor Peterson
	 	Title: Vice President

 

    4

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