Document:

Exhibit 10.1

 

clirSPV LLC

 

May 26, 2022

 

Board of Directors

ClearSign Technologies Corporation

 

Re: Waiver of Notice Requirement
and Participation Right

 

Ladies and Gentlemen:

 

Pursuant to Section 2 of Appendix IV of
that certain Stock Purchase Agreement (the “Agreement”) entered into on July 12, 2018 between ClearSign Technologies Corporation
(the “Company”) and clirSPV LLC (the “Investor”), the Investor has a right to participate, on terms and conditions
no different from those offered to other purchasers, its pro rata portion of any new Equity Securities, other than those securities defined
in the Agreement as Excluded Securities, that the Company may from time to time propose to issue or sell for the purpose of raising capital
(the “Participation Right”). Terms not otherwise defined herein shall have the meanings as assigned to them in the Agreement.

 

Pursuant to subsection b. of Section
2 of Appendix IV of the Agreement, the Company agreed to give the Investor written notice (the ‘‘Notice”) of any proposed
issuance or sale of new equity securities (the “Offering”) within five business days following any meeting of the Board at
which the Offering is approved (the “Notice Requirement”).

 

The Investor is willing to sign
a waiver of the Company’s obligation to comply with the Notice Requirement and modify its Participation Right but wants an extension
of the Participation Right. The Company is willing to extend the Participation Right to a later date, but no later than June 30, 2027
(such date, the “Final Expiration Date”), to which holders of two-thirds of the units of the Investor agree to extend the
period beyond July 18, 2023 in which they have no right to force a redemption of their interests in the Investor. The Investor believes
that such agreement will enable it to maintain the holdings of the Investor thus lending stability and greater certainty to the stockholder
base of the Company.

 

For good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Investor hereby waives for the duration of the Participation Right (i)
the Notice Requirement, including the delivery of an Issuance Notice, as those relate to any future registered offering of New Securities
(other than any Excluded Securities), including the proposed offering through Newbridge Securities Corporation on or around May 27, 2022,
made pursuant to a registration statement on Form S-1 or Form S-3, including any related concurrent private placement (a “Future
Offering”), and (ii) the requirement that the proposed issuance date be at least 20 days from the date of such notice for a Future
Offering (clauses (i) and (ii) collectively, the “Waiver”).

 

In exchange for the Waiver, the
Company and the Investor agree that the Participation Right is modified, such that, on the date that the number of new Equity Securities
to be sold in a Future Offering and the price per New Security is determined, the Company will notify the Investor of that information
and the Company will sell to the Investor, if the Investor notifies the Company on or before the thirtieth (30th) calendar
day after the final closing of such Future Offering (the “Offering Response Date”) of its intention to purchase, a number
of unregistered shares of the Company’s common stock not in excess of an amount sufficient to maintain or reobtain the Investor’s
ownership percentage of 19.99% of the Company’s outstanding common stock (the “Investor’s Percentage Ownership”);
provided, however, that the Investor’s purchase shall be completed within six (6) Business Days after the Offering Response Date.

 

     

     

    

 

In addition, the Company and the
Investor hereby agree that, effective upon the Investor Holder Consent (as defined below), the Participation Right, subject to the Waiver
and modification contained herein, shall be extended from December 31, 2023 to such date that the holders of two-thirds of the outstanding
units of the Investor agree (the “Investor Holder Consent”) to extend such holder’s existing agreement that he/she/itwill
have no right to force a redemption of his/her/its interests in the Investor (the “Participation Right Extension Date”); provided,
however, that the Investor provides written notice to the Company of the Investor Holder Consent prior to December 31, 2023 and the Participation
Right shall in no event extend beyond the Final Expiration Date.

 

The Waiver is limited to the matters
expressly waived herein and should not be construed as an indication that the Investor would be willing to agree to any future modifications
to or waiver of any of the Notice Requirement or the Participation Right. Except as expressly set forth above, the terms and conditions
of the Agreement shall remain in full force and effect and each of the Company and the undersigned reserves all rights with respect to
any other matters and remedies.

 

The Company agrees to reimburse the Investor for
documented expenses incurred by it in connection with the negotiation of this Waiver and such purchases of unregistered sales under the
Waiver up to a maximum of $25,000. The Company further agrees that, in the event the Company sells convertible debt, preferred stock,
or other instruments that are at any time convertible into or exercisable or exchangeable for common stock in a transaction that closes
prior to the expiration date of the Participation Right as set forth in the Agreement, as modified herein, then the Company will reasonably
endeavor to enable the Investor the ability to maintain or reobtain up to the Investor’s Percentage Ownership by having the opportunity
to purchase a portion of such securities at the same terms as other investors, on a timeline similar to that specified above for a Future
Offering, whether public or private; provided, that such new securities would not fall within the definition of Excluded Securities and
any such sale does not require the Company to bear any undue legal, regulatory or expense burden or to unreasonably delay any such financing
in order to effectuate such sale.

 

This agreement includes the entire
agreement of the Investor and the Company with respect to the subject matter hereof and supersedes all prior agreements and understandings,
oral or written, with respect to such matters; provided, however, that this waiver does not in any way modify the waiver entered into
between the Company and the Investor on December 18, 2020. This agreement shall inure to the benefit of and be binding upon the Investor
and the Company and their respective successors and permitted assigns in accordance with this agreement. This agreement may not be amended,
modified or supplemented, and no provision of this waiver may be waived, other than by a written instrument duly executed and delivered
by a duly authorized officer of each party hereto.

 

		Very truly yours,
	 	 	 
	 	clirSPV LLC by
	 	GPCLIRSPV LLC, managing member
	 	 	 
	 	By:	/s/ Robert T. Hoffman Sr.
	 	Robert T. Hoffman Sr.

 

	ACCEPTED AND AGREED TO:	 
	 	 	 
	ClearSign Technologies Corporation	 
	 	 	 
	By:	/s/ Colin James Deller	 
	Colin James Deller, Chief Executive OfficerDocument

Exhibit 10.1

AMENDMENT NO. 2, dated as of May 27, 2022 (this “Amendment”), to the Credit Agreement dated as of December 20, 2021 (as amended by Amendment No. 1 dated as of April 8, 2022 and as further amended, amended and restated, supplemented or otherwise modified from time to time prior to the date hereto, the “Credit Agreement”; the Credit Agreement as amended by the Amendment, the “Amended Credit Agreement”), among CIRCOR INTERNATIONAL, INC., a Delaware corporation (the “Borrower”), the other Credit Parties party thereto, TRUIST BANK, as Administrative Agent and as Collateral Agent, Swing Line Lender and an LC Issuer and each other Lender and LC Issuer from time to time party thereto (collectively, the “Lenders”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement.
WHEREAS, pursuant to Section 11.12 of the Credit Agreement, the Credit Agreement may be amended with the written consent of the Borrower, the Administrative Agent and the Required Lenders;    
WHEREAS, the Borrower, the Administrative Agent and the Required Lenders party hereto desire to amend the Credit Agreement on the terms set forth herein; 
NOW, THEREFORE, in consideration of the covenants and agreements contained herein, as well as other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
SECTION 1.  Amendments.  On the Amendment No. 2 Effective Date, the Credit Agreement shall be amended as follows:
(a)  Section 1.01 of the Credit Agreement is hereby amended to add the following defined terms in appropriate alphabetical order:
“Amendment No. 2” means that certain Amendment No. 2 to the Credit Agreement, dated as of the Amendment No. 2 Effective Date, among the Borrower, each other Guarantor party thereto, the Lenders party thereto and the Administrative Agent.
“Amendment No. 2 Effective Date” has the meaning set forth in Amendment No. 2. The Amendment No. 2 Effective Date occurred on May 27, 2022.
(b)  Section 1.01 of the Credit Agreement is hereby amended to modify the definition of “Minimum Borrowing Amount” by inserting the following parenthetical at the end of clause (i) thereof immediately prior to “,”: “(or, in the case of any Revolving Loans borrowed on the Amendment No. 2 Effective Date, such other amount as agreed by the Administrative Agent)”
(c)  Section 1.01 of the Credit Agreement is hereby amended to amend and restate the definition of “Restricted Period” in its entirety as follows:
“Restricted Period” means the period from the Amendment No. 1 Effective Date to and including the date on which the Borrower has delivered each of (i) the audited financial statements and related Compliance Certificate in respect of the fiscal year ended December 31, 2021, (b) the unaudited financial statements and related Compliance Certificate in respect of the fiscal quarter ended April 3, 2022 and (c) the unaudited financial statements and related Compliance Certificate for the fiscal quarter ending July 3, 2022, in each case, pursuant to Section 6.01(a), (b) and (c), as applicable.
(d)  Section 2.17(b) of the Credit Agreement is hereby amended to replace “March 31, 2022” with “April 3, 2022”.
(e)  Section 6.01(a) of the Credit Agreement is hereby amended to replace the second parenthetical set forth therein in its entirety as follows:

“(or, in the case of the fiscal year ended December 31, 2021, prior to July 30, 2022)”
(f)  Section 6.01(b) of the Credit Agreement is hereby amended to replace the words “beginning with the fiscal quarter ending March 31, 2022” in their entirety as follows:
“(or, (i) in the case of the fiscal quarter ended April 3, 2022, prior to July 30, 2022 and (ii) in the case of the fiscal quarter ending July 3, 2022, prior to September 30, 2022), beginning with the fiscal quarter ended April 3, 2022”
(g)  Section 6.01(j) of the Credit Agreement is hereby amended and restated in its entirety as follows:
“Lender Calls.   (i) On dates and at times to be mutually agreed with the Administrative Agent, at least once per month during the period commencing on the Amendment No. 2 Effective Date and ending on the last day of the Restricted Period (with the first such call to be held on or about June 30, 2022), and (ii) promptly after the delivery of the information referred to in Section 6.01(a) and (b), as applicable, in each case, the Borrower will hold a conference call with Private-Side Lender Representatives to review the financial performance of the Borrower and its Restricted Subsidiaries.  The Borrower shall provide internally available financial information in a form to be mutually agreed with the Administrative Agent to the Private-Side Lender Representatives in advance of each such conference call occurring during the Restricted Period.”
(h)  Section 7.07 of the Credit Agreement is hereby amended to (x) replace “March 31, 2022” with “April 3, 2022”, (y) replace “June 30, 2022” with “July 3, 2022” and (z) replace “September 30, 2022” with “October 2, 2022”. 
SECTION 2.  Conditions to Effectiveness.  This Amendment shall become effective on the date (such date being referred to as the “Amendment No. 2 Effective Date”) when each of the following conditions shall have been satisfied:
(a)  (i) the Borrower shall have executed and delivered a counterpart of this Amendment to the Administrative Agent, (ii) Lenders constituting Required Lenders shall have executed and delivered counterparts of this Amendment to the Administrative Agent  and (iii) the Administrative Agent shall have executed a counterpart of this Amendment;
(b)  each of the representations and warranties of each Credit Party contained in Section 3 hereof shall be true and correct on and as of the Amendment No. 2 Effective Date;
(c)  no Default or Event of Default shall have occurred and be continuing on the Amendment No. 2 Effective Date;
(d)  Truist Securities, Inc. shall have received the fees in the amounts previously agreed to in writing with the Borrower to be received on the Amendment No. 2 Effective Date pursuant to that certain Engagement Letter, dated as of May 20, 2022 and under Section 11.01 of the Credit Agreement (including the reasonable legal fees and expenses of Cahill Gordon & Reindel LLP, counsel to the Administrative Agent); and
(e)  the Administrative Agent shall have received, for the account of each Lender with an Initial Term Loan or Revolving Commitment who has delivered an executed counterpart of this Amendment prior to 5:00 p.m. (New York City time) on May 26, 2022, consent fees in an amount equal to 0.50% of the aggregate principal amount of Initial Term Loans and/or Revolving Commitments, as applicable, held by such Lender immediately prior to such time; this fee will be fully earned and due and payable on the Amendment No. 2 Effective Date.

SECTION 3.  Representations and Warranties.  The Borrower hereby represents and warrants on and as of the Amendment No. 2 Effective Date that:
(a)  the Borrower is a duly organized or formed and validly existing corporation in good standing under the laws of the jurisdiction of its formation and has the corporate power and authority to execute and deliver this Amendment and carry out the terms and provisions of this Amendment and the Amended Credit Agreement and has taken all necessary corporate action to authorize the execution and delivery of this Amendment and performance of this Amendment and the Amended Credit Agreement;
(b)  the Borrower has duly executed and delivered this Amendment and each of this Amendment and the Amended Credit Agreement constitutes the legal, valid and binding agreement and obligation of the Borrower enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law);
(c)  none of the execution and delivery by the Borrower of this Amendment, the performance by the Borrower of this Amendment and the Amended Credit Agreement  or the compliance with the terms and provisions hereof or thereof or the consummation of the transactions contemplated hereby (i) will contravene any provision of any law, statute, rule, regulation, order, writ, injunction or decree of any Governmental Authority applicable to the Borrower or its properties and assets in a manner that is materially adverse to the Borrower or its Restricted Subsidiaries, (ii) will conflict with or result in any breach of, any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Lien (other than the Liens created pursuant to the Collateral Documents or Liens otherwise permitted under the Amended Credit Agreement) upon any of the property or assets of the Borrower pursuant to the terms of any promissory note, bond, debenture, indenture, mortgage, deed of trust, credit or loan agreement, or any other Material Agreement or (iii) will violate any provision of the Organizational Documents of the Borrower and its Restricted Subsidiaries;
(d)  the representations and warranties of the Borrower contained in the Amended Credit Agreement and the other Loan Documents are true and correct in all material respects (except that if any such representation or warranty contains any materiality qualifier, such representation or warranty is true and correct in all respects) on and as of the Amendment No. 2 Effective Date (after giving effect thereto) to the same extent as though made on and as of the Amendment No. 2 Effective Date, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties are true and correct in all material respects (except that if any such representation or warranty contains any materiality qualifier, such representation or warranty is true and correct in all respects) on and as of such earlier date; and
(e)  upon the effectiveness of this Amendment, no Default or Event of Default has occurred and is continuing or would result from the consummation of the transactions contemplated hereby.

SECTION 4.  Effect on Loan Documents.  
(a)  On and after the effectiveness of this Amendment, each reference in any Loan Document to “the Credit Agreement” shall mean and be a reference to the Amended Credit Agreement 

and each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof” or words of like import shall mean and be a reference to the Amended Credit Agreement.
(b)  Except as specifically amended herein, all Loan Documents (including all guarantees and Liens granted thereunder in respect of the Secured Obligations) shall continue to be in full force and effect and are hereby in all respects ratified and confirmed.  
(c)  The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of any Lender or Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of the Loan Documents or in any way limit, impair or otherwise affect the rights and remedies of the Administrative Agent or the Lenders under the Loan Documents.  This Amendment shall not constitute a novation of the Credit Agreement or the other Loan Documents. 
(d)  The Borrower and the other parties hereto acknowledge and agree that, on and after the Amendment No. 2 Effective Date, this Amendment shall constitute a Loan Document for all purposes of the Amended Credit Agreement.
SECTION 5.  Governing Law, Submission to Jurisdiction, Venue and Waiver of Jury Trial.  The provisions of Section 11.08 of the Credit Agreement are hereby deemed to be incorporated herein, mutatis mutandis.
SECTION 6.  Miscellaneous.  
(a)  This Amendment shall be binding upon and inure to the benefit of the Credit Parties and their respective successors and permitted assigns, and upon the Administrative Agent and the Lenders and their respective successors and permitted assigns.
(b)  To the extent permitted by applicable Requirements of Law, any provision of this Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.  
(c)  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy, emailed pdf or electronic mail that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Amendment. The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to any document to be signed in connection with this Amendment and the transactions contemplated hereby shall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.  As used herein, the term “Electronic Signature” shall mean an electronic symbol or process attached to, or associated with, a contract or other record and adopted by a Person with the intent to sign, authenticate or accept such contract or record. 
[Remainder of page intentionally left blank.]

IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and deliver this Amendment as of the date first above written.
CIRCOR INTERNATIONAL, INC., as Borrower
By:      /s/ Tanya Dawkins    
Name: Tanya Dawkins
Title: Treasurer  
[Signature Page to Amendment No. 2]

TRUIST BANK, as Administrative Agent 
						
	By:
	

	/s/ Katherine Bass

	

	Name:    Katherine Bass
	

	Title:    Managing Director

[Signature Page to Amendment No. 2]

[Lender Signature Pages on File with Administrative Agent]

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