Document:

exhibit104consentdatedas

                                                                    Exhibit 10.4                                         CONSENT          This Consent (this “Consent”), dated as of May 13, 2019, is made by and between KVH  INDUSTRIES, INC., a Delaware corporation (“Borrower”), and BANK OF AMERICA, N.A.,  as  administrative  agent  for  the  Lenders (in  such  capacity, together  with  its  successors  and  assigns, “Administrative Agent”).                                 W I T N E S S E T H:           WHEREAS, Borrower and Administrative Agent are parties to a certain Amended and  Restated Credit Agreement, dated  as  of October 30,  2018 (as the  same  now  exists  and  may  hereafter  be  amended,  modified,  supplemented,  extended,  renewed,  restated,  or  replaced from  time to time, the “Credit Agreement”);                 WHEREAS,  Borrower has advised Administrative Agent  that KVH MEDIA GROUP  LIMITED, a private limited company incorporated under the laws of England with registered  number  06462774  (“Seller”),  is  selling  100%  of  the  Equity  Interest (the  “Sale”) of  each  of  SUPER DRAGON LIMITED, a private company incorporated under the laws of Hong Kong  with  company  number  1327525 (“Super  Dragon”)  and VIDEOTEL  MARINE  ASIA  LIMITED, a private company incorporated under the laws of Hong Kong with company number  1110854 (“Videotel” and together with Super Dragon, the “Companies”), pursuant to that certain  Share Purchase Agreement, dated as of May 13, 2019, by and among Seller and [Oakley SPV],  as purchaser (“Purchaser”),  and  the  Borrower,  as  a  guarantor  of  the  obligations  of  the  Seller  under  such  agreement (as  the  same  now  exists  and  may  hereafter  be  amended,  modified,  supplemented,  extended,  renewed,  restated,  or  replaced  from  time  to  time,  the  “Purchase  Agreement”);                 WHEREAS, each of Seller and the Companies is a Subsidiary of Borrower;                WHEREAS, concurrently with the Sale, Purchaser and Seller have entered or will enter  into a financing arrangement, pursuant to which Seller will make available to Purchaser a loan or  other  financial  accommodations in  the  aggregate  amount  of  $90,000,000, and Purchaser  and  Seller will enter into a Loan Agreement (the “Loan Agreement”) in respect thereof (the “Bridge  Loan”);                WHEREAS,   the  proceeds  of the  Bridge  Loan shall  be  used  by  the  Purchaser  to  consummate  the  Sale,  and the  Bridge  Loan shall mature  thirty  (30) Business  Days  after  the  incurrence thereof;                WHEREAS,   (i) the  Sale  is  a  Disposition (as  defined  in  the  Credit  Agreement),  (ii)  pursuant  to  Section  7.05 of  the  Credit  Agreement, Seller,  as  a  Subsidiary  of  Borrower, is  prohibited from making such a Disposition, and (iii) pursuant to Section 8.01(b), the making by  Seller of such Disposition without the consent of Required Lenders would constitute an Event of  Default under the Credit Agreement;                WHEREAS, the Bridge Loan is an Investment (as defined in the Credit Agreement), (ii)  pursuant  to  Section  7.03  of  the  Credit  Agreement,  Seller,  as  a  Subsidiary  of  Borrower,  is  prohibited from making such an Investment, and (iii) pursuant to Section 8.01(b), the making by  Seller of such Investment without the consent of Required Lenders would constitute an Event of  Default under the Credit Agreement;                                                 1  

 

                                                                    Exhibit 10.4         WHEREAS,  pursuant  to  Section  2.05(b)  of  the  Credit  Agreement, in  the  event  of  a  Disposition, Seller is required to prepay the Loans in an aggregate amount equal to 100% of the  Net  Cash  Proceeds  received  by  Seller  from  the  Sale,  to  be  applied  first, to  the  principal  repayment  installments  of  the  Term  Loan  in  inverse  order  of  maturity  for  all  such  principal  repayment installments, and, second, to the Revolving Facility in the manner set forth in clause  (vi) of Section 2.05(b) of the Credit Agreement;                WHEREAS, Borrower wishes for Required Lenders to Consent to: (i) the Sale, (ii) the  Bridge Loan, and (iii) the retention by Seller of the Retained Net Cash Proceeds (as defined in  Section 2(c)  hereof),  in each  case subject  to  the  terms  and  conditions  set  forth  herein,  and  Required Lenders wish so to consent.          NOW, THEREFORE, in consideration of the premises and of the mutual covenants and  agreements herein contained, it is hereby agreed as follows:    1.    Defined  Terms Generally.  Capitalized  terms  used but not  otherwise  defined  in  this        Consent shall have the meanings ascribed to them in the Credit Agreement.   2.    Consents.          (a)   Notwithstanding Sections 7.05 and 8.01(b) of the Credit Agreement, any  other              provision  of the Credit Agreement, or  any of the other  Loan  Documents to  the              contrary, subject to the satisfaction of all conditions set forth in Section 6 hereof,              Required Lenders hereby consent to and authorize (i) the execution and delivery              by Borrower and Seller of the Purchaser Agreement and (ii) the Sale pursuant to              and in accordance with the terms of the Purchase Agreement as in effect on the              date hereof.          (b)   Notwithstanding Sections 7.03 and 8.01(b) of  the  Credit  Agreement,  any  other              provision  of the Credit Agreement, or  any of the other  Loan  Documents to  the              contrary, subject to the satisfaction of all conditions set forth in Section 6 hereof,              Required  Lenders hereby  consent  to  and authorize the Bridge  Loan pursuant  to              and in accordance with the terms of the Loan Agreement as in effect on the date              hereof.          (c)   Notwithstanding Section 2.05(b) of the Credit Agreement, any other provision of              the Credit Agreement, or  any  of  the  other  Loan  Documents to  the  contrary,              subject to the satisfaction of all conditions set forth in Section 6 hereof, Required              Lenders hereby consent to and authorize Borrower and its Subsidiaries to retain              any Net Cash Proceeds of the Sale that may remain following the application by              Borrower  of  the  Net  Cash  Proceeds  of  the  Sale,  promptly  upon  the receipt  by              Seller, to (i) the Term Loan (and any accrued interest thereon) until repaid in full              then (ii) Total  Revolving  Outstandings until,  on  a  pro  forma  basis, the              Consolidated  Leverage  Ratio  is  not  more  than  2.75x  (the  “Retained  Net  Cash              Proceeds”).    3.    Maintenance of Revolving Commitment. Notwithstanding  any  prepayment  of  the        Revolving Loan made pursuant to this Consent, the Revolving Commitment shall remain        $20,000,000, subject to the terms and conditions of the Credit Agreement, including but                                         2  

 

                                                                    Exhibit 10.4         not limited to the decrease in the Revolving Commitment effective as of December 31,        2019, as set forth therein.   4.    Ratification.  Except  as  provided  for  herein,  all  terms  and  conditions  of  the Credit        Agreement and  the other  Loan  Documents remain  in  full  force  and  effect.  Borrower        hereby  ratifies,  confirms,  and  reaffirms  all  representations,  warranties,  and  covenants        contained therein, and acknowledges and agrees that the Obligations, as modified hereby,        are and continue to be secured by the Collateral.  Borrower warrants and represents to        Administrative Agent that  as  of  the  date  hereof,  no Event  of  Default exists  or has        occurred and is continuing.     5.    Release.  In consideration of the agreements  of Administrative Agent contained herein        and for other good and valuable consideration, the receipt and sufficiency of which are        hereby  acknowledged,  the  Borrower  hereby  releases  and  forever  discharges        Administrative Agent and  the  Required  Lenders and the  respective directors,  officers,        employees, agents, attorneys, affiliates, subsidiaries, successors and assigns of each of the        Administrative Agent and the Required Lenders from any and all liabilities, obligations,        actions,  contracts,  claims,  causes  of  action,  damages,  demands,  costs  and  expenses        whatsoever  (collectively  “Claims”),  of  every  kind  and  nature,  however  evidenced  or        created,  whether  known  or  unknown,  other  than  Claims  arising  out  of fraud  or  willful        misconduct,  arising  prior  to  or  on  the  date hereof, including,  but  not  limited  to,  any        Claims involving the extension of credit under the Credit Agreement or the other Loan        Documents, as each may be amended, the Obligations incurred by the Borrower or any        other transactions evidenced by or related to the Credit Agreement or any of the other        Loan Documents.   6.    Conditions  Precedent. This Consent shall  not  be  effective (other  than Section  2(a)(i)        hereof,  which  is  effective  upon  the  execution  hereof) until  each  of  the  following        conditions precedent has been fulfilled to the satisfaction of Administrative Agent:         (a)   This Consent shall  have  been  duly  executed  and  delivered  by  the  respective              parties thereto, and shall be in full force and effect;         (b)   Each  of the  conditions  precedent  to  the  consummation  of  the  Sale  under  the              Purchase Agreement and Loan Agreement shall have been fulfilled in accordance              with the terms thereof or waived with the consent of the Administrative Agent,              which consent may not be unreasonably withheld;          (c)   Administrative Agent  shall have received duly executed copies of the Purchase              Agreement, Loan Agreement, and any other documentation evidencing the same;              and          (d)   All  actions on  the  part  of Borrower and  Seller necessary  for  the legal, valid,              binding, and  enforceable execution,  delivery, and  performance  by Borrower of              this Consent,  and  by Seller for  the legal, valid,  binding, and  enforceable              performance by Seller of the Purchase Agreement and the consummation of the              Sale and  other  transactions  contemplated  thereby, shall  have  been  duly  and                                         3  

 

                                                                    Exhibit 10.4               effectively taken, and evidence thereof reasonably satisfactory to Administrative              Agent shall have been provided to Administrative Agent.    7.    Miscellaneous.         (a)   This Consent shall be governed by, and construed in accordance with, the laws of              the State of New York.         (b)   This Consent may  be  executed  in  several  counterparts  and  by  each  party  on  a              separate counterpart, each of which when so executed and delivered shall be an              original, and all of which together shall constitute one instrument.         (c)   This Consent expresses the entire understanding of the parties with respect to the              transactions  contemplated  hereby.   No  prior  negotiations  or  discussions  shall              limit, modify, or otherwise affect the provisions hereof.         (d)   Any determination that any provision of this Consent or any application hereof is              invalid, illegal or unenforceable in any respect and in any instance shall not affect              the validity, legality, or enforceability of such provision in any other instance, or              the validity, legality or enforceability of any other provisions of this Consent.         (e)   Borrower shall pay on demand all costs and expenses of Administrative Agent,              including,  without  limitation,  reasonable  attorneys’  fees  in  connection  with  the              preparation, negotiation, execution and delivery of this Consent.         (f)   Borrower warrants and represents that Borrower has consulted with independent              legal counsel of Borrower’s selection in connection with this Consent and is not              relying  on  any  representations  or  warranties  of Administrative Agent or  its              counsel in entering into this Consent.                              [Remainder of Page Intentionally Left Blank; Signature Pages Follow]                                          4  

 

                                                                    Exhibit 10.4         IN  WITNESS  WHEREOF,  the  parties  hereto  have  caused  this Consent to  be  duly  executed as a sealed instrument of the date first written above.                                             ADMINISTRATIVE AGENT:                                              BANK OF AMERICA, N.A.                                                                                                                                    By:  /s/ NICHOLAS STORTI                                            Name:  Nicholas Storti                                            Title:  Senior Vice President                                                                                                                                    LENDERS:                                                                                        BANK OF AMERICA, N.A.                                                                                                                                    By:  /s/ NICHOLAS STORTI                                            Name:  Nicholas Storti                                            Title:  Senior Vice President                                                                                                                                    THE WASHINGTON TRUST COMPANY                                                                                                                                    By:  __/s/ SCOTT A McCAUGHEY_____                                            Name:  Scott A. McCaughey                                            Title:  Vice President                                                                                                                                                                                BORROWER:                                                    KVH INDUSTRIES, INC.                                                                                        By:  _/s/ DONALD W. REILLY                                            Name:  Donald W. Reilly                                            Title:  Chief Financial Officer                                                              5Exhibit 4.1

         

        

        FORM OF TECTONIC FINANCIAL, INC.

        9.00% FIXED-TO-FLOATING RATE SERIES B

        NON-CUMULATIVE PERPETUAL PREFERRED STOCK

      

      
         

        UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK
            CORPORATION (“DTC”), TO THE CORPORATION OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
            DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE
            REGISTERED OWNER HEREOF, CEDE & CO. HAS AN INTEREST HEREIN.

         

        TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, BY DTC TO A NOMINEE OF DTC
            OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN
            ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE CERTIFICATE OF DESIGNATIONS REFERRED TO BELOW.

         

        IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER TO THE TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION
            AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

         

          

      

      
        
          

      

      	
              Certificate Number B-1

            	
              1,725,000 Shares of Series B Preferred Stock

            
	 	
              CUSIP NO.: 87217L 208

            
	 	 

      
        

        

        Certificate Evidencing 9.00% Fixed-to-Floating Rate

         

        Series B Non-Cumulative Perpetual Preferred Stock

         

        of

         

        Tectonic Financial, Inc.

         

        (liquidation preference $10.00 per share of Series B Preferred Stock)

      

      
        

        

         

        Tectonic Financial, Inc., a financial holding company and Texas corporation (the “Corporation”), hereby certifies that 
                        (the “Holder”) is the registered owner of              fully paid and non-assessable preferred securities of the Corporation designated the 9.00% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock, par value
            $0.01 per share (the “Series B Preferred Stock”). The shares of Series B Preferred Stock are transferable on the books and records of the Registrar, in person or by a
              duly authorized attorney, upon surrender of this certificate duly endorsed and in proper form for transfer. The designations, rights, privileges, restrictions, preferences and other terms and provisions of the Series B Preferred Stock
            represented hereby are issued and shall in all respects be subject to the provisions of the Certificate of Designation dated May 10, 2019, as the same may be amended from time to time (the “Certificate of Designation”). Capitalized terms used
            herein but not defined shall have the meaning given them in the Certificate of Designation. The Corporation will provide a copy of the Certificate of Designation to the Holder without charge upon written request to the Corporation at its
            principal place of business.

         

        Reference is hereby made to select provisions of the Series B Preferred Stock set forth on the reverse hereof, and to
            the Certificate of Designation, which select provisions and the Certificate of Designations shall for all purposes have the same effect as if set forth at this place.

         

        Upon receipt of this certificate, the Holder is bound by the Certificate of Designation and is entitled to the benefits
            thereunder.

         

        Unless the Registrar has properly countersigned, these shares of Series B Preferred Stock shall not be entitled to any
            benefit under the Certificate of Designation or be valid or obligatory for any purpose.

      

      
         

        

      

      
        IN WITNESS WHEREOF, the Corporation has executed this certificate this [        ] day of [                    ].

      

      
         

        

      

      	 	
              TECTONIC FINANCIAL, INC.

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Name:

              Title:

            
	 	 	 
	 	
              By:

            	 
	 	 	
              Name:

              Title:

            

      
        

        

      

      REGISTRAR’S COUNTERSIGNATURE

      

      

      These are shares of Series B Preferred Stock referred to in the within-mentioned Certificate of Designation.

      

      

      Dated:

      

      

      	
              BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC.,

              as Registrar

            	 
	 	 	 

      	
              By:

            	 	 

      	
              Name:

            	 
	
              Title:

            	 

      

      

      
        
          

      

      [REVERSE OF SECURITY]

      

      

      TECTONIC FINANCIAL, INC.

      
        

        

        The Corporation will furnish, without charge to each Holder who so requests, a copy of the certificate of designation
            setting forth the rights, powers and preferences, and the qualifications, limitations and restrictions thereof applicable to each class of stock of the Corporation or series thereof. Such information may be obtained by a request in writing to
            the Secretary of the Corporation at its principal place of business.

         

        This certificate and the share or shares represented hereby are issued and shall be held subject to all of the
            provisions of the Corporation’s Amended and Restated Certificate of Formation, as the same may be amended from time to time, and the certificate of designation setting forth the rights, powers and preferences, and the qualifications,
            limitations and restrictions thereof, of the 9.00% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred Stock (copies of which are on file with the Transfer Agent), to all of which the Holder, by acceptance hereof, assents.

         

        The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though
            they were written out in full according to applicable laws or regulations:

      

      
         

        

      

      	
              TEN COM –

            	
              as tenants in common

            
	
              TEN ENT –

            	
              as tenants by the entireties

            
	
              JT TEN –

            	
              as joint tenants with rights of survivorship and not as tenants in common

            
	
              UNIF GIFT

            	 
	
              MIN ACT –

            	 	
              Custodian

            	 
	 	
              
                (Cust)

              

            	

            	
              

              

            
	 	 	 	
              (Minor)

            

      

      

      	
              under Uniform Gift to Minors Act

            
	 
	
              (State)

            

      
        

        

        Additional abbreviations may also be used though not in the above list.

      

      
        

      
        ASSIGNMENT

      

      
        

        

        FOR VALUE RECEIVED, the undersigned assigns and transfers this Series B Preferred Stock Certificate to:

      

      
         

        

      

      	 
	
              (Please Insert Social Security or Other Identifying Number of Assignee)

            
	 
	
              (Please Print or Typewrite Name and Address, Including Zip Code, of Assignee)

            
	 
	 
	 
	 
	 

      
        

        

        shares of the preferred stock represented by the within certificate, and do hereby irrevocably constitute and appoint Attorney to transfer
            the said stock on the books of the within named Corporation with full power of substitution in the premises.

      

      
        

        

      

      	
              Dated

                    

            	 	 	 	 
	 	 	 
	 	
              NOTICE:

            	
              The Signature to this Assignment Must Correspond with the Name As Written Upon the Face of the Certificate in Every Particular,
                  Without Alteration or Enlargement or Any Change Whatever.

            

      
         

          

        SIGNATURE GUARANTEED

         

          

        (Signature Must Be
              Guaranteed by a Member

      

      
        of a Medallion Signature Program)

         

          

      

      
        
          

      

      
        SCHEDULE OF INCREASES AND DECREASES IN GLOBAL SECURITY

      

      
        

        

        This Global Security initially represents 1,725,000 shares of 9.00% Fixed-to-Floating Rate Series B Non-Cumulative Perpetual Preferred
            Stock. The following increases or decreases in this Global Security have been made:

      

      
         

        

      

      	
              Date

            	 	
              Amount of

              decrease in

              shares

              of this Global

              Security

            	 	
              Amount of

              increase in shares

              of this Global

              Security

            	 	
              Number of Shares of

              this Global Security

              following such decrease

              or increase

            	 	
              Signature of

              authorized

              signatory of

              Transfer Agent

              and Registrar

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