Document:

Exhibit 101

		

			 

		

		
			Fourth AMENDMENT AND WAIVER TO CREDIT AND SECURITY AGREEMENT
		

		
			﻿
		

		
			This Fourth Amendment and Waiver to Credit and Security Agreement (this “Amendment”) is dated as of March 12, 2020 by and among MICRON PRODUCTS INC., a Massachusetts corporation  ("Borrower"), MICRON SOLUTIONS, INC., a Delaware corporation (“Guarantor” and, together with Borrower, each an “Obligor” and collectively, the “Obligors”), and ROCKLAND TRUST COMPANY, a Massachusetts trust company ("Lender").
		

		
			RECITALS
		

			
	
			
				 A.
			Borrower and Lender are parties to that certain Credit and Security Agreement dated as of December 29, 2017, as amended by that certain First Amendment and Waiver to Credit and Security Agreement dated as of March 7, 2019, as further amended by that certain Second Amendment and Consent to Credit and Security Agreement dated as of August 6, 2019 and by that certain Third Amendment and Waiver to Credit and Security Agreement dated as of August 19, 2019 (the "Credit Agreement").

			
	
			
				 B.
			Obligors have requested that Lender agree to (i) amend certain provisions of the Credit Agreement and (ii) waive certain Events of Default that have occurred as a result of Borrower’s failure to satisfy certain requirements of Section 4.3 and paragraph 1 of Schedule B-3 of the Credit Agreement,  namely by virtue of failing to maintain a Debt Service Coverage Ratio of not less than 1.10 to 1.0 for the fiscal quarter ended December 31, 2019 for the trailing 3 month period then ended (the “Specified Event of Default”).

			
	
			
				 C.
			Lender has agreed to so amend certain provisions of the Credit Agreement and to waive the Specified Event of Default on the terms and conditions set forth below.

		
			NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lender and each Obligor hereby agree as follows:
		

			
	
			
				 1.
			Capitalized Terms.  Unless otherwise defined herein, capitalized terms used herein shall have the meanings ascribed to them in the Credit Agreement.

			
	
			
				 2.
			Waiver of Specified Event of Default; No Other Waiver.  Effective as of the date of the occurrence of the Specified Event of Default, Lender hereby waives the Specified Event of Default.  Except as expressly set forth herein with respect to the Specified Event of Default, Lender has not waived, is not hereby waiving, and has no intention of waiving, any other Event of Default or any Default.  All of the terms and conditions of the Credit Agreement remain in full force and effect and none of such terms and conditions are, or shall be construed as, otherwise amended or modified, except as specifically set forth herein, and nothing in this Amendment shall constitute a waiver by Lender of any Default or Event of Default, or of any right, power or remedy available to Lender under the Credit Agreement or any other Loan Document, whether any such defaults, rights, powers or remedies presently exist or arise in the future, except as specifically set forth herein.

			
	
			
				 3.
			Amendments to Credit Agreement.    

			
	
			
				 a.
			Paragraph 1 in Schedule B-3 of the Credit Agreement is amended in its entirety as follows:

		
			“1.  DEBT SERVICE COVERAGE RATIO.  Borrower shall cause to be maintained a Debt Service Coverage Ratio of not less than 1.1 to 1.0 with respect to the Borrower’s fiscal quarters ending March 31, 2020 and each fiscal quarter thereafter, in each case as calculated for the trailing 12 month period then ended with respect to each such fiscal quarter;  provided that the fiscal quarter ending March 31, 2020 shall be calculated for the trailing 3 month period then ended with respect to such fiscal quarter, the fiscal quarter ending June 30, 2020 shall be calculated for the trailing 6 month period then ended with respect to such fiscal quarter and the  fiscal quarter ending September 30, 2020 shall be calculated for the trailing 9 month period then ended with respect to such fiscal quarter.”.
		

			
	
			
				 4.
			Representations and Warranties.  Borrower represents and warrants to Lender that (a) all of the representations and warranties made in the Credit Agreement are true and accurate as of the date hereof as if made as of the date hereof (except as the same may relate to an earlier date), and (b) after giving effect to this Amendment, no Default or Event of Default exists.

			
	
			
				 5.
			Conditions Precedent.The effectiveness of this Amendment is subject to the satisfaction of the following:

		 

 

			
	
			
				 a.
			the execution and delivery of this Amendment by all parties hereto;

			
	
			
				 b.
			receipt by the Lender from the Borrower of a $5,000 amendment fee, together with payment for any fees and expenses reasonably incurred by Lender in connection with this Amendment; and

			
	
			
				 c.
			receipt by the Lender from the Obligors of such other documents reasonably requested by the Lender, including, without limitation, that certain certificate of good standing of each Obligor, issued by the Secretary of State of the Commonwealth of Massachusetts or the Secretary of State of the State of Delaware, as applicable, in each case issued within thirty (30) days prior to the date hereof.

			
	
			
				 6.
			Acknowledgements.  Each Obligor hereby acknowledges, ratifies, reaffirms, and agrees that the Credit Agreement and the other Loan Documents, as applicable, are enforceable against each Obligor in accordance with their terms and applicable law, and the security interests granted to Lender thereunder in the Collateral are and will remain enforceable perfected first priority security interests which secure the payment and performance by Borrower of the Obligations and Guarantor’s guarantee of Borrower’s payment and performance of the Obligations.

			
	
			
				 7.
			Release.    Each Obligor hereby acknowledges and agrees that it has no defense, counterclaim, offset, cross-complaint, claim or demand of any kind of nature whatsoever that can be asserted to reduce or eliminate all or any part of its liability to repay or guarantee the repayment of the Obligations or to seek affirmative relief or damages of any kind or nature from Lender which are known to it as of the date hereof.  Each Obligor hereby voluntarily and knowingly releases and forever discharges Lender and each of its respective predecessors, agents, employees, affiliates, successors and assigns (collectively, the “Released Parties”) from all known claims, demands, actions, causes of action, damages, costs, expenses and liabilities whatsoever, anticipated or unanticipated, suspected or unsuspected, fixed, contingent or conditional, at law or in equity, in any case originating in whole or in part on or before the date this Amendment becomes effective that either Obligor may now or hereafter have against the Released Parties, if any, irrespective of whether any such claims arise out of contract, tort, violation of law or regulations, or otherwise, and that arise from any extension of credit made under the Credit Agreement, the exercise of any rights and remedies under the Credit Agreement or any other Loan Document, and/or the negotiation for and execution of this Amendment, including, without limitation, any contracting for, charging, taking, reserving, collecting or receiving interest in excess of the highest lawful rate applicable.

			
	
			
				 8.
			Counterparts.  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together constituting one and the same instrument.

			
	
			
				 9.
			Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the Applicable State.

		
			﻿
		

		
			[Signature page follows]
		

		
			﻿
		

		
			 
		

		 

		

			2

		

		

			 

		

 

		

			

		

		
			IN WITNESS WHEREOF, the parties hereto have executed this Amendment as a sealed instrument as of the first date above written.
		

		
			﻿
		

		
			﻿
		

		
			BORROWER:
		

		
			MICRON PRODUCTS INC.
		

		
			﻿
		

		
			By: ___________________________________
		

		
			       Name: Wayne Coll
		

		
			       Title:    Chief Financial Officer 
		

		
			﻿
		

		
			﻿
		

		
			﻿
		

		
			GUARANTOR:
		

		
			MICRON SOLUTIONS, INC.
		

		
			﻿
		

		
			By: ___________________________________
		

		
			       Name: Wayne Coll
		

		
			       Title:    Chief Financial Officer
		

		
			﻿
		

		
			﻿
		

		
			LENDER:
		

		
			ROCKLAND TRUST COMPANY
		

		
			﻿
		

		
			By: ___________________________________
		

		
			       Name: Thomas Meehan
		

		
			       Title:    Relationship Manager
		

		
			﻿
		

		 

		

			Signature Page to Fourth Amendment and Waiver to Credit and Security AgreementExhibit

EXHIBIT 4.6

DESCRIPTION OF THE REGISTRANT’S SECURITIES REGISTERED
PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934
Asure Software, Inc. (“Asure,” “we” or “our”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): its common stock, par value $ 0.01 per share (“Common Stock”), currently listed on the Nasdaq Stock Market. In addition, holders of Common Stock have the right to purchase Series A Junior Participating Preferred Stock (the “Series A Stock”). The following is a summary of the material terms of the Common Stock and the Series A Stock. This summary is qualified in its entirety by reference to Asure’s Restated Certificate of Incorporation (the “Charter”) and Third Amended and Restated By-laws (the “By-laws”), which are incorporated herein by reference as Exhibit 3.1 and Exhibit 3.2, respectively, to Asure’s Annual Report on Form 10-K of which this Exhibit 4.6 is a part. We encourage you to read the Charter, the By-laws and applicable provisions of the Delaware General Corporation Law (the “DGCL”) for additional information.
General
Our authorized capital stock consists of 22,000,000 shares of Common Stock, $0.01 par value per share, and 1,500,000 shares of preferred stock, $0.01 par value per share. 
Common Stock
Voting Rights
The holders of Common Stock are entitled to one vote for each share held of record on all matters submitted to a vote of the stockholders, including the election of directors, and do not have cumulative voting rights.
Dividends
Subject to limitations under the DGCL and preferences that may be applicable to any then outstanding preferred stock, holders of Common Stock are entitled to receive ratably those dividends, if any, as may be declared by our board of directors out of legally available funds.
Liquidation
In the event of our liquidation, dissolution or winding up, the holders of Common Stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after the payment of or provision for all of our debts and other liabilities, subject to the prior rights of any preferred stock then outstanding.
Rights and Preferences
Holders of Common Stock have no preemptive or conversion rights or other subscription rights and there are no redemption or sinking funds provisions applicable to the Common Stock.
Transfer Agent and Registrar
The transfer agent and registrar for our Common Stock is American Stock Transfer & Trust Company.
Preferred Stock
We currently have authorized 1,500,000 shares of preferred stock, $0.01 par value per share. Of those shares, we have designated 350,000 shares of Series A Stock, none of which shares are outstanding. The balance of our preferred stock is undesignated.
Series A Junior Participating Preferred Stock and Related Rights
We previously declared a dividend per share of Common Stock of one right (a “Right”) to purchase from us one one‐thousandth of a share of  Series A Stock at a price of $1.7465 per one thousandth of a share of Series A Stock, subject to adjustment (the “Exercise Price”). The Rights are not exercisable until the Distribution Date referred to below. Until the Rights 

are exercised, the Rights holders will not have rights as our stockholders, including, without limitation, the right to vote or to receive dividends. The description and terms of the Rights are described in the Second Amended and Restated Rights Agreement between American Stock Transfer & Trust Company LLC and us, dated as of April 17, 2019, which we have previously filed with the SEC. We qualify the following summary by reference to the Second Amended and Restated Rights Agreement.
The Second Amended and Restated Rights Agreement imposes a significant penalty upon any person or group that acquires 4.9% or more (but less than 50%) of our outstanding Common Stock without the prior approval of our board.
The Rights become exercisable, if at all, ten days after a public announcement by us that a person or group has become an Acquiring Person. Until that date (the “Distribution Date”), our Common Stock certificates will evidence the Rights and will contain a notation to that effect. Any transfer of shares of Common Stock prior to the Distribution Date will constitute a transfer of the associated Rights. If the Rights become exercisable, each Right will allow its holder to purchase from us one one‐thousandth of a share of Series A Stock for a purchase price of $1.7465. Each fractional share of Series A Stock would give the stockholder approximately the same dividend, voting and liquidation rights as one share of Common Stock. After the Distribution Date, the Rights will separate from the Common Stock and be evidenced by a Rights certificate, which we will mail to all holders of the Rights that are not void.
In addition, if a person or group becomes an Acquiring Person after the Distribution Date or already is an Acquiring Person and acquires more shares after the Distribution Date, all holders of Rights, except the Acquiring Person, may exercise their rights to purchase a number of shares of Common Stock (in lieu of Series A Stock) with a market value of twice the Exercise Price, upon payment of the purchase price.
Although we issued the Rights in an attempt to preserve our net operating loss carryforwards for tax purposes (which we cannot assure), the Rights have certain anti‐takeover effects. The Rights will cause substantial dilution to a person or group that attempts to acquire us on terms not approved by our board. We do not expect that the Rights will interfere with any merger or other business combination approved by our board since we may redeem the Rights at the Redemption Price prior to the date ten days after the public announcement that a person or group has become the beneficial owner of 4.9% or more of the Common Stock. Further, we may exclude from the calculation of beneficial ownership any securities which a person or any of such person’s affiliates may be deemed to have the right to acquire pursuant to any merger or other acquisition agreement between such person and us if our board has approved such agreement prior thereto.
The transfer agent and registrar for our Series A Stock is American Stock Transfer & Trust Company.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00306-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00306-of-00352.parquet"}]]