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Exhibit 10.1

THIRD LOAN MODIFICATION AGREEMENT
    This Third Loan Modification Agreement (this “Loan Modification Agreement”) is entered into as of July 11, 2022, by and between (a) SILICON VALLEY BANK, a California corporation, with a loan production office located at 505 Howard Street, 3rd Floor, San Francisco, California 94105 (“Bank”) and (b) VELO3D US, INC., a Delaware corporation, with its principal place of business at 511 Division Street, Campbell, California 95008 (formerly known as VELO3D, INC.) (“Borrower”).
1.DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS.  Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated as of May 14, 2021, evidenced by, among other documents, a certain Third Amended and Restated Loan and Security Agreement dated as of May 14, 2021, between Borrower and Bank, as amended by a certain First Loan Modification Agreement dated as of May 13, 2022, and as further amended by a certain Second Loan Modification Agreement dated as of June 13, 2022 (as has been and as may be further amended, modified, restated, replaced or supplemented from time to time, the “Loan Agreement”).  Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement.
2.DESCRIPTION OF COLLATERAL.  Repayment of the Obligations is secured by, among other property, (a) the Collateral as defined in the Loan Agreement and (b) the Intellectual Property Collateral as defined in a certain Intellectual Property Security Agreement dated as of May 14, 2021, between Borrower and Bank (as may be amended, modified, restated, replaced or supplemented from time to time, the “IP Agreement”) (together with any other collateral security granted to Bank, as amended the “Security Documents”).  Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the “Existing Loan Documents”.
3.DESCRIPTION OF CHANGE IN TERMS.
a.Modification to Loan Agreement. The Loan Agreement shall be amended by deleting the following definition, appearing in Section 13.1 thereof:
“    “Revolving Line Maturity Date” is July 14, 2022.” 
        and inserting in lieu thereof the following:
“    “Revolving Line Maturity Date” is September 11, 2022.”
4.FEES AND EXPENSES.  Borrower shall reimburse Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents.  
5.RATIFICATION OF IP AGREEMENT.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and conditions of the IP Agreement, and acknowledges, confirms and agrees that the IP Agreement contains an accurate and complete listing of all Intellectual Property Collateral as defined in the IP Agreement, and shall remain in full force and effect.

6.PERFECTION CERTIFICATE.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate of Borrower dated as of May 14, 2021 delivered by Borrower to Bank and acknowledges, confirms and agrees that the disclosures and information Borrower provided to Bank in such Perfection Certificate have not changed, as of the date hereof.
7.CONSISTENT CHANGES.  The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above.
8.RATIFICATION OF LOAN DOCUMENTS.  Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral granted to Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations.
9.RELEASE BY BORROWER.
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a.FOR GOOD AND VALUABLE CONSIDERATION, Borrower hereby forever relieves, releases, and discharges Bank and its present or former employees, officers, directors, agents, representatives, attorneys, and each of them, from any and all claims, debts, liabilities, demands, obligations, promises, acts, agreements, costs and expenses, actions and causes of action, of every type, kind, nature, description or character whatsoever, whether known or unknown, suspected or unsuspected, absolute or contingent, arising out of or in any manner whatsoever connected with or related to facts, circumstances, issues, controversies or claims existing or arising from the beginning of time through and including the date of execution of this Loan Modification Agreement (collectively “Released Claims”).  Without limiting the foregoing, the Released Claims shall include any and all liabilities or claims arising out of or in any manner whatsoever connected with or related to the Loan Documents, the recitals hereto, any instruments, agreements or documents executed in connection with any of the foregoing or the origination, negotiation, administration, servicing and/or enforcement of any of the foregoing.
b.In furtherance of this release, Borrower expressly acknowledges and waives any and all rights under Section 1542 of the California Civil Code, which provides as follows:
“A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.” (Emphasis added.)

c.By entering into this release, Borrower recognizes that no facts or representations are ever absolutely certain and it may hereafter discover facts in addition to or different from those which it presently knows or believes to be true, but that it is the intention of Borrower hereby to fully, finally and forever settle and release all matters, disputes and differences, known or unknown, suspected or unsuspected; accordingly, if Borrower should subsequently discover that any fact that it relied upon in entering into this release was untrue, or that any understanding of the facts was incorrect, Borrower shall not be entitled to set aside this release by reason thereof, regardless of any claim of mistake of fact or law or any other circumstances whatsoever.  Borrower acknowledges that it is not relying upon and has not relied upon any representation or statement made by Bank with respect to the facts underlying this release or with regard to any of such party’s rights or asserted rights.
d.This release may be pleaded as a full and complete defense and/or as a cross-complaint or counterclaim against any action, suit, or other proceeding that may be instituted, prosecuted or attempted in breach of this release.  Borrower acknowledges that the release contained herein constitutes a material inducement to Bank to enter into this Loan Modification Agreement, and that Bank would not have done so but for Bank’s expectation that such release is valid and enforceable in all events.
e.Borrower hereby represents and warrants to Bank, and Bank is relying thereon, as follows:
iExcept as expressly stated in this Loan Modification Agreement, neither Bank nor any agent, employee or representative of Bank has made any statement or representation to Borrower regarding any fact relied upon by Borrower in entering into this Loan Modification Agreement.

iiBorrower has made such investigation of the facts pertaining to this Loan Modification Agreement and all of the matters appertaining thereto, as it deems necessary.

iiiThe terms of this Loan Modification Agreement are contractual and not a mere recital. 

ivThis Loan Modification Agreement has been carefully read by Borrower, the contents hereof are known and understood by Borrower, and this Loan Modification Agreement is signed freely, and without duress, by Borrower.  

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vBorrower represents and warrants that it is the sole and lawful owner of all right, title and interest in and to every claim and every other matter which it releases herein, and that it has not heretofore assigned or transferred, or purported to assign or transfer, to any person, firm or entity any claims or other matters herein released.  Borrower shall indemnify Bank, defend and hold it harmless from and against all claims based upon or arising in connection with prior assignments or purported assignments or transfers of any claims or matters released herein.
10.CONTINUING VALIDITY.  Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents.  Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect.  Bank’s agreement to modifications to the existing Obligations pursuant to this  Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations.  Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations.  It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing.  No maker will be released by virtue of this Loan Modification Agreement.
11.COUNTERSIGNATURE.  This Loan Modification Agreement shall become effective only when it shall have been executed by Borrower and Bank. 
12.COUNTERPARTS.  This Loan Modification Agreement may be executed in any number of counterparts (including by PDF or other electronic transmission, or facsimile) and all of such counterparts taken together shall be deemed to constitute one and the same instrument.
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IN WITNESS WHEREOF, the parties hereto have caused this Loan Modification Agreement to be executed as of the date first written above.
BORROWER:
VELO3D US, INC.

By: /s/ William D. McCombe
Name: William D. McCombe
Title: Chief Financial Officer 
BANK:
SILICON VALLEY BANK

By: /s/ Anthony DeSantis
Name: Anthony DeSantis
Title: Vice Presidentex_393683.htm

Exhibit 4.3

 

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

 

Butler National Corporation, a Kansas corporation (herein “Company” or “BNC”), has two classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). One class consists of 100,000,000 authorized shares of common stock, par value $0.01 per share (“Common Stock”). The other class consists of preferred share purchase rights that currently are not separately traded or transferrable apart from the Common Stock.

 

This description of the Company’s securities is based on BNC’s Amended and Restated Articles of Incorporation (the “Articles”), amended bylaws (“Bylaws”), the Shareholder Rights Agreement dated August 2, 2011 as amended from time to time (the “Rights Agreement”), and provisions of applicable Kansas law. The following description does not purport to be complete and is subject to, and qualified in its entirety by, the full text of BNC’s Articles, Bylaws, and Rights Agreement, each of which are incorporated by reference as an exhibit to the Annual Report on Form 10-K of which this Exhibit is a part.

 

Authorized Capital

 

The Company’s authorized capital stock consists of 100,000,000 shares of Common Stock and 50,000,000 shares of Preferred Stock. There are no shares of Preferred Stock outstanding.

 

Voting Rights

 

Holders of Common Stock are entitled to one vote per share on all matters voted on by the stockholders, including the election of directors. Common Stock does not have cumulative voting rights.

 

Dividends

 

Subject to the rights of holders of Preferred Stock (if any), holders of Common Stock are entitled to receive dividends when, as and if declared by the Company’s Board of Directors out of funds legally available for that purpose.

 

Liquidation

 

In the event of any liquidation, dissolution or winding-up of the Company, subject to the rights of holders of Preferred Stock (if any), holders of Common Stock are entitled to receive the remaining assets available for distribution to stockholders.

 

No Preemptive or Similar Rights

 

Common Stock is not entitled to preemptive rights, conversion or other rights to subscribe for additional securities and there are no redemption or sinking fund provisions applicable to Common Stock.

 

Fully Paid and Non-assessable

 

All of the outstanding shares of Common Stock are fully paid and non-assessable.

 

Listing

 

The Common Stock is traded on OTCQB under the trading symbol “BUKS”.

 

Transfer Agent and Registrar

 

The transfer agent and registrar for Common Stock is EQ by Equiniti.

 

Classified Board

 

The Company’s Board of Directors is divided into three classes. Stockholders elect the directors of each class for three-year terms upon the expiration of the term of a respective class. Stockholders elect only one class of directors each year.

 

Advance Notice for Stockholder Proposals and Nominations

 

The Company’s Bylaws contain provisions requiring advance notice be delivered to the Company of any business to be brought by a stockholder before an annual meeting and providing for procedures to be followed by stockholders in nominating persons for election to BNC’s Board of Directors. A stockholder must give notice not less than 120 days before the first anniversary of the mailing date of the notice of the preceding year’s annual meeting. The notice must contain the information required by the Bylaws, and the stockholder(s) and nominee(s) must comply with the other information requirements outlined in the Bylaws.

 

Limitations on Ability of Stockholders to Call a Special Meeting by Act or by Written Consent

 

BNC’s Bylaws provide that a special meeting of the stockholders may be called only by the Chairman of the Board of Directors, the Vice Chairman of the Board, if any, the Chief Executive Officer, the President or the Board of Directors. Any action required by law to be taken at any annual or special meeting of stockholders of the Company, or any action which may be taken at any annual or special meeting of such stockholders, may be taken without a meeting, without prior notice and without a vote, if a consent in writing, setting forth the action so taken, shall be signed by all the holders of outstanding stock entitled to vote thereon.

 

Authorized But Unissued Shares

 

BNC may issue additional shares of Common Stock or Preferred Stock without stockholder approval, subject to applicable law, for a variety of corporate purposes, including future public or private offerings to raise capital, corporate acquisitions, and employee benefit plans and equity grants. The existence of unissued and unreserved Common Stock and Preferred Stock may enable the Company to issue shares to persons who are friendly to current management, which could discourage an attempt to obtain control of the Company.

 

Shareholder Rights Plan

 

Each share of Common Stock carries with it one preferred share purchase right (each a “Right”) to acquire one-two hundredth of a share of Series C Participating Preferred Stock, par value $5.00 per share. Until a person or group of persons acquires, or obtains the right to acquire, 15% or more of the outstanding shares of voting stock of the Company without the prior express written consent of the Company (a “Triggering Event”), the Rights are transferred with and only with the Company’s Common Stock. Prior to a Triggering Event, ownership of any Right shall not entitle such holder to vote, receive dividends, have any of the rights of a stockholder of the Company, any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting, or be deemed for any purpose the holder of Preferred Stock, Common Stock or any other securities of the Company. The terms of the Rights may be amended by the Board of Directors of the Company without the consent of the holders of the Right. A summary of the Rights are included in the Company’s Form 8-A filed on August 2, 2011 and incorporated herein by reference.

 

Requirements to Amend Bylaws

 

BNC’s Articles and Bylaws expressly authorize the Board of Directors to amend, alter, repeal or adopt the Bylaws of the Company. The Bylaws of the Corporation may from time to time be repealed, amended or altered, or new Bylaws may be adopted, in either of the following ways: (i) by the vote of a majority of the stockholders entitled to vote at any annual or special meeting thereof; and (ii) by resolution adopted by a majority of the members of the Board of Directors then in office; provided, however that the power of the directors to suspend, repeal, amend or otherwise alter the Bylaws or any portion thereof may be denied as to any Bylaws or portion thereof enacted by the stockholders if at the time of such enactment the stockholders shall so expressly provide.

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