Document:

sidus_ex103.htm

EXHIBIT 10.3
  
 LOAN ASSIGNMENT AND ASSUMPTION AGREEMENT
  
 THIS LOAN ASSIGNMENT AND ASSUMPTION AGREEMENT (“Agreement”) dated December 3, 2021 is by and between Decathlon Alpha IV, L.P., a Delaware limited partnership (“Lender”), Craig Technical Consulting, Inc., a Delaware corporation dba Craig Technologies (“Assignor”), and Sidus Space, Inc., a Delaware corporation (“Assignee”).
  
 RECITALS
  
 	  
	 A.
	 Lender extended a loan to Assignor pursuant to that certain Revenue Loan and Security Agreement dated January 9, 2019, as amended by First Amendment dated March 13, 2020, as further amended by Second Amendment dated April 6, 2021, and as further amended by Third Amendment dated on or about the date hereof (the “Loan Agreement”), between Lender and Assignor, in the principal amount up to $4,000,000 (the “Loan”). Capitalized terms used but not defined herein shall have the meanings set forth in the Loan Agreement.

	  
	  
	  

	  
	 B.
	 The current principal and interest owed to Lender pursuant to the Loan Agreement is $8,281,869.85.

	  
	  
	  

	  
	 C.
	 Assignee desires to assume the principal amount of $1,000,000 of the Obligations (the “Assumed Obligations”) of Assignor under the Loan Agreement, and Assignor and Lender consent to such assumption (the “Loan Assignment and Assumption”).

	  
	  
	  

	  
	 D.
	 Assignee and Lender desire to enter into a Revenue Loan and Security Agreement to govern the terms and conditions of the Assumed Obligations assigned pursuant to the Loan Assignment and Assumption (together with any ancillary documents required by Lender, the “Loan Documents”).

  
 NOW THEREFORE, the parties hereby agree as follows:
  
 AGREEMENT
  
 1. In exchange for the assumption by Assignee of Assignor’s obligations associated with the Assumed Obligations, Lender hereby consents to the Loan Assignment and Assumption. Assignor hereby assigns, and Assignee hereby assumes, the Assumed Obligations pursuant to the terms and conditions set forth in the Loan Documents, effective concurrent with the execution of this Agreement.
  
 2. From and after the date hereof, Assignee assumes and agrees to perform and discharge all of the duties, liabilities and obligations of the Assignor in connection with the Assumed Obligations pursuant to the terms and conditions set forth in the Loan Documents.
  
 3. Except as specifically provided for herein, no covenants or warranties, express or implied, are given by Lender pursuant to this Agreement, or otherwise, in connection with the transaction, the Loan Agreement, and Loan Documents. 
  
 	 
	
	

	 

  
 4. Lender, Assignor, and Assignee hereby acknowledge and accept that the Assumed Obligations will be governed by the Loan Documents, and agree that each party shall, under no circumstances, have or make any claim or assertion of liability of any nature whatsoever against any other party under, or in any way relating to, the Loan Agreement with respect to the Assumed Obligations. 
  
 5. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which taken together shall constitute one and the same agreement.
  
 6. This Agreement contains the complete agreement of the parties and supersedes any prior agreements, whether written or oral, between them with respect to the Loan Documents. This Agreement may not be modified or amended except by a writing signed by the parties hereto.
  
 7. This Agreement shall be construed in accordance with the laws of the State of Utah, without regard to principles of conflicts of law.
  
 [Signature page follows]
  
 	 
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 IN WITNESS WHEREOF, Lender, Assignor, and Assignee have executed this Agreement on the day and year first above written.
  
 	 	 LENDER:
	
	  
	  
	  

	  
	 DECATHLON ALPHA IV, L.P.
	  

	 	 	 	 
		By:	Decathlon Alpha GP IV, LLC	
	  
	 Its:
	General Partner	 
	 	 		 
	 	By: 	/s/ John Borders 	 
	  
	  
	 John Borders, Managing Director
	  

	  
	  
	  
	  

	  
	 ASSIGNOR:
	  

	  
	  
	  
	  

	  
	 CRAIG TECHNICAL CONSULTING, INC.
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Carol Craig 
	  

	  
	  
	 Carol Craig, CEO
	  

	  
	  
	  
	  

	  
	 ASSIGNEE:
	  

	  
	  
	  
	  

	  
	 SIDUS SPACE, INC.
	  

	  
	  
	  
	  

	  
	 By: 
	 /s/ Carol Craig 
	  

	  
	  
	 Carol Craig, CEO
	  

  
 [Signature page to Loan Assignment and Assumption Agreement]sidus_ex104.htm

EXHIBIT 10.4
     
 LOAN AGREEMENT
  
 This LOAN AGREEMENT (“Agreement”) is entered into effective as of May 1, 2021 (“Effective Date”) by and between:
  
 Craig Technical Consulting, Inc., a Delaware corporation having its principal place of business at 150 N. Sykes Creek Parkway, Suite 200, Merritt Island, FL 32953 (“Lender”),
  
 and
  
 Craig Technologies Aerospace Solutions, Inc. d/b/a Sidus Space, a Delaware corporation having its principal place of business at 150 N. Sykes Creek Parkway, Suite 200, Merritt Island, FL 32953 (“Borrower”).
  
 (Lender and Borrower are collectively referred to as the “Parties” and individually referred to as “Party.”)
  
 WHEREAS Borrower desires to borrow funds from Lender in order to finance its operations; and
  
 WHEREAS Lender is willing to lend funds to Borrower on the terms and conditions provided herein;
  
 NOW THEREFORE, the Parties agree as follows:
  
 1. Loan Amount. The Lender hereby agrees to make a loan to the Borrower in the amount of four million ($4,000,000) (the “Loan”).
  
 2. Interest. From the Effective Date until such date as this Loan (together with all interest thereon) is paid in full, the principal balance of this Note outstanding (together with any accrued but unpaid interest thereon) shall bear interest at a per annum interest rate equal to the long term Applicable Federal Rate (as such term is defined in Section 1274(d) of the Internal Revenue Code of 1986, as amended).
  
 3. Loan Term. The term of this Loan shall commence on the Effective Date, and shall be repaid in the amount of $250,000 every quarter for four (4) years beginning on Oct 1, 2021. This Agreement and the Loan may be extended by mutual consent of the Parties, provided that any amendment complies with all applicable legal requirements
  
 4. Repayment; Nonrecourse. The indebtedness under this Loan Agreement shall be nonrecourse except to the extent of any assets and income of Borrower.
  
 5. Prepayment. The Loan and any interest accrued hereunder may be repaid fully or partially, at any time, without premium, penalty, or notice. All prepayment amounts received by the Lender shall be applied first to interest, and then to any unpaid principal balance.
  
 	 
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 6. Representations and Warranties of Borrower. The Borrower hereby makes the following representations and warranties to Lender:
  
 	  
	 a.
	 The Borrower is a company duly formed and validly existing under the laws of the State of Delaware and it has the power and authority to own its own property and assets; to carry on its business as it is now being conducted and to enter into, deliver and perform its obligations under this Agreement; and

	  
	  
	  

	  
	 b.
	 This Agreement constitutes the valid and legal obligation of the Borrower, binding upon and enforceable against the Borrower in accordance with the terms and conditions hereof.

     
 7. Covenants of the Borrower. The Borrower covenants with the Lender that, so long as this Agreement shall remain in effect:
  
 a. Use of Proceeds. The Borrower shall use the proceeds of the Loan for general working capital purposes. Without the written permission of the Lender, the Borrower shall not directly or indirectly use the proceeds of the Loan for the repayment or retirement of indebtedness of the Borrower.
  
 b. No Subordination. The Loan shall rank senior to and shall not be subordinated to any future indebtedness debt of the Borrower, unless otherwise agreed to in writing by Lender.
  
 c. Limitation on Dividends and Distributions. The Borrower shall not (i) declare or pay any dividends on any class of its capital stock; (ii) directly or indirectly or through any subsidiary or affiliate purchase, redeem or retire any of its capital stock or warrants or options for capital stock; or (iii) make any other distribution of any kind or character in respect of its capital stock.
  
 d. Notice of Default. The Borrower shall furnish the Lender prompt written notice of any Default or Event of Default (as defined below), which notice shall specify the nature and extent thereof and the corrective action (if any) taken or proposed to be taken with respect thereto.
  
 8. Other Negative Covenants. The Borrower will not, unless the Lender shall otherwise consent in writing (a) create, assume or suffer to exist, any liens or security interest upon or with respect to any other assets material to the consolidated operations of the Borrower, (b) create, assume or suffer to exist any other debt, or (c) merge or consolidate with any person or entity.
  
 	 
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 9. Defaults and Events of Default. The occurrence of any of the following events shall constitute an “Event of Default”: (a) the Borrower fails to perform any other covenant, condition, or agreement set forth in this Agreement, or any other agreement by and between Borrower and Lender, and such failure continues unremedied for thirty (30) days after the Borrower’s receipt of written notice thereof from the Lender; (b) an Act of Insolvency (as defined below) occurs in relation to the Borrower; or (c) the Borrower becomes bankrupt or insolvent as defined in any bankruptcy or insolvency law applicable to it. As used in this
 Agreement, “Default” means any event or circumstance which, with notice and/or the passage of time, would constitute an Event of Default, and “Act of Insolvency” means the occurrence of any of the following events:
  
 	  
	 (i)
	 the filing of a voluntary petition in bankruptcy or insolvency or a petition for reorganization under any bankruptcy or insolvency law by the Borrower or the admission by the Borrower that it is unable to pay its debts as they become due; or

	  
	 (ii)
	 the entering of an order, judgment or decree by any court of competent jurisdiction, on the application of a creditor adjudicating the Borrower as bankrupt or insolvent or approving a petition seeking reorganisation or appointing a receiver, trustee, liquidator, administrative receiver, administrator, compulsory manager or other similar officer over all or a substantial part of the Borrower’s assets, and such order, judgment or decree continuing unstayed and in effect for a period of ninety (90) days; or

	  
	 (iii)
	 the consent to an involuntary petition in bankruptcy or the failure to vacate, within ninety (90) days from the date of entry thereof, any order approving an involuntary petition by the Borrower.

	  
 Upon the occurrence of any Event of Default, the Lender may, by notice to the Borrower, declare the Loan, all interest thereon and all other amounts payable under this Agreement to be forthwith due and payable, whereupon the Loan, all such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower.

  
 10. Successors and Assigns. The terms, covenants, and conditions contained in this Agreement and the Loan shall be binding upon the successors and permitted assigns of the Borrower and shall inure to the benefit of the successors and permitted assigns of the Lender.
  
 11. Enforceability. In the event any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions of this Agreement shall remain in full force and effect. The parties commit to make their best efforts to amend any invalid, illegal or unenforceable clause of this Agreement.
  
 12. Non-negotiable. The Agreement is non-negotiable and shall not be sold, transferred, assigned, or pledged by Lender except with the prior written approval of Borrower; provided, however, that the Lender may transfer this Agreement to any related party by written endorsement specifying the related party to which the Agreement is being transferred. For purposes of this paragraph, the term “related party” means any existing or newly formed entity or association directly or indirectly controlled by Lender, through an ownership interest or contractual rights.
   
 	 
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 13. Remedies Cumulative. The remedies of the Lender, as provided herein or in law or in equity, shall be cumulative and concurrent, and may be pursued singularly, successively, or together at the sole discretion of the Lender, and may be exercised as often as occasion therefor shall occur; and the failure to exercise any such right or remedy shall in no event be construed as a waiver or a release thereof.
  
 14. Governing Law. The Agreement is governed by the laws of the State of Delaware, and may be modified only by a written agreement executed by the person against whom the change, modification, or waiver is to be enforced.
  
 15. Notices. Any notice required to be given under this Agreement shall be given in writing, and shall be effective when actually delivered by hand, when actually received by facsimile or email with scan attachment (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, at the addresses set forth on the first page. The addresses for each party hereto may be changed by a notice delivered as set forth in this Section.
  
 16. Counterparts. This Agreement may be executed in any number of counterparts each of which when executed and delivered shall be an original, but all of which when taken together shall constitute one single instrument.
    
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 The Parties have caused this Agreement to be executed by their duly authorized representatives effective as of the Effective Date.
    
 	 Craig Technical Consulting, Inc., 
	  
	 Craig Technologies Aerospace Solutions, Inc.
 d/b/a Sidus Space.
	  

	  
	  
	  
	  
	  
	  

	 By:
	 /s/ Carol M Craig
	  
	 By:
	 /s/ Carol M Craig
	  

	 Name:
	 Carol M Craig
	  
	 Name:
	 Carol M Craig
	  

	 Title:
	 CEO
	  
	 Title:
	 CEO
	  

  
 	 
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