Document:

Exhibit

DESCRIPTION OF SECURITIES

Description of Capital Stock

General
The following is a summary of information concerning the capital stock of Global Eagle Entertainment Inc. (the “Company”). The summaries and descriptions below do not purport to be complete statements of the relevant provisions of the Company’s Second Amended and Restated Certificate of Incorporation (as amended, the “Charter”) and Amended and Restated By-laws, amended as of September 20, 2016 (the “By-laws”), and are entirely qualified by these documents.

Authorized and Outstanding Stock
We have authorized 401,000,000 shares of capital stock, consisting of 375,000,000 shares of common stock, $0.0001 par value per share, 25,000,000 shares of non-voting common stock, $0.0001 par value per share, and 1,000,000 shares of undesignated preferred stock, $0.0001 par value per share. As of May 11, 2020, there were 3,744,673 shares of our common stock outstanding, no shares of non-voting common stock outstanding and no shares of preferred stock outstanding. As of May 11, 2020, there were 75 holders of record of our capital stock. This figure does not include the number of persons whose securities are held in nominee or "street" name accounts through brokers.

On April 15, 2020, we effected a one-for-twenty-five (1:25) reverse stock split of our outstanding common stock. As a result of the reverse stock split, every twenty-five (25) shares of our pre-reverse split common stock were combined and reclassified into one (1) share of common stock without any change in the par value per share. The reverse stock split did not modify the rights or preferences of the common stock. No fractional shares were issued as a result of the reverse stock split. In lieu thereof, we paid cash to any stockholder holding fractional shares as a result of the reverse stock split equal to such fraction multiplied by the closing price per share of common stock on The Nasdaq Capital Market as of April 14, 2020.

Common Stock
 Our Charter provides that, except with respect to voting rights and conversion rights applicable to the non-voting common stock, the common stock and non-voting common stock have identical rights, powers, preferences and privileges.

Voting Power
Except as otherwise required by law or as otherwise provided in any certificate of designation for any series of preferred stock, the holders of common stock possess all voting power for the election of our directors and all other matters requiring stockholder action. Holders of common stock are entitled to one vote per share on matters to be voted on by stockholders. Holders of non-voting common stock have no voting power and no right to participate in any meeting of stockholders or to receive notice thereof, except as required by applicable law and except that any action that would adversely affect the rights of the non-voting common stock relative to the common stock with respect to the modification of the terms of the securities or dissolution will require the approval of the non-voting common stock voting separately as a class. Except as otherwise provided by law, applicable stock exchange rules, our Charter or our Bylaws, all matters to be voted on by our stockholders must be approved by a majority of the votes cast by the stockholders present in person or represented by proxy at the meeting and entitled to vote on the subject matter. In the case of an election of directors, where a quorum is present, a majority of the votes cast will be required to elect each director in an uncontested election, but a plurality of the votes cast will be sufficient to elect a director in a contested election.

Dividends
 
    Holders of common stock and non-voting common stock will be equally entitled to receive such dividends, if any, as may be declared from time to time by our board of directors (our "Board") in its discretion out of funds legally available therefor. In no event will any stock dividends or stock splits or combinations of stock be declared or made on common stock or non-voting common stock unless the shares of common stock and non-voting common stock at the time outstanding are treated equally and identically, provided that, in the event of a dividend of common stock or non-voting common stock, shares of non-voting common stock shall only be entitled to receive shares of non-voting common stock and shares of common stock shall only be entitled to receive shares of common stock.
        We have not paid any cash dividends on our common stock to date and do not anticipate declaring any dividends in the foreseeable future. In addition, our current credit facilities contain restrictions on our ability to pay dividend

Liquidation, Dissolution and Winding Up
        In the event of our voluntary or involuntary liquidation, dissolution, distribution of assets or winding-up, the holders of the common stock and non-voting common stock will be entitled to receive an equal amount per share of all of our assets of whatever kind available for distribution to stockholders, after the rights of the holders of the preferred stock have been satisfied.
Corporate Transactions
        In the event that any consideration is paid or distributed to our stockholders or any shares of our capital stock are converted into any other form of consideration in connection with (i) any sale, lease, transfer, exclusive license, exchange or other disposition of any material portion of our property and assets (or any material portion of the property and assets of any of our direct or indirect subsidiaries), (ii) any merger, consolidation, business combination or other similar transaction involving us or any of our direct or indirect subsidiaries with any other entity, or (iii) any recapitalization, liquidation, dissolution or other similar transaction involving us or any of our direct or indirect subsidiaries, then the shares of common stock and non-voting common stock will be treated equally, identically and ratably on a per share basis with respect to any such consideration or distribution or conversion.
Preemptive or Other Rights
        Our stockholders have no preemptive or other subscription rights and there are no sinking fund or redemption provisions applicable to our common stock or non-voting common stock.
Election of Directors
        Our Board is divided into three classes, each of which will generally serve for a term of three years with only one class of directors being elected in each year. There is no cumulative voting with respect to the election of directors, with the result that the holders of more than 50% of the shares voted for the election of directors can elect all of the directors.
Preferred Stock
        Our Charter provides that shares of preferred stock may be issued from time to time in one or more series. Our Board is authorized to fix the voting rights, if any, designations, powers, preferences, the relative, participating, optional or other special rights and any qualifications, limitations and restrictions thereof, applicable to the shares of each series. Our Board is able to, without stockholder approval, issue preferred stock with voting and other rights that could adversely affect the voting power and other rights of the holders of the common stock and could have anti-takeover effects. The ability of our Board to issue preferred stock without stockholder approval could have the effect of delaying, deferring or preventing a change of control of the Company or the removal of existing management. We have no preferred stock outstanding at the date hereof. Although we do not currently intend to issue any shares of preferred stock, we cannot assure you that we will not do so in the future.
Registration Rights

Amended and Restated Registration Rights Agreement
When we consummated our business combination in January 2013 with Row 44 and Advanced Inflight Alliance AG, we entered into an amended and restated registration rights agreement with Par Investment Partners, L.P. (“PAR”), entities affiliated with Putnam Investments, Global Eagle Acquisition LLC (the “Sponsor”) and a current member of our board of directors (“Board of Directors” or “Board”), Harry E. Sloan and our then Board member, Jeff Sagansky, both of whom were affiliated with the Sponsor. Under that agreement, we agreed to register the resale of securities held by such parties (the “registrable securities”) and to sell those registrable securities pursuant to an effective registration statement in a variety of manners, including in underwritten offerings. We also agreed to pay the security holders’ expenses in connection with their exercise of their registration rights.

In addition, the amended and restated registration rights agreement restricts our ability to grant registration rights to a third party on parity with or senior to those held by the “holders” (as defined under that agreement) without the consent of holders of at least a majority of the “registrable securities” under that agreement. In April 2018, we entered into a consent to the amended and restated registration rights agreement with PAR whereby PAR (as a holder of a majority of registrable securities thereunder) consented to the registration rights that we provided to Searchlight Capital Partners, L.P. (“Searchlight”) as part of its investment in us (as further described below).

Searchlight Registration Rights
Searchlight has customary shelf, demand and piggyback registration rights with respect to the common stock (including shares of common stock underlying the warrants) that it holds, including demand registrations and underwritten “shelf takedowns,” subject to specified restrictions, thresholds and the Company’s eligibility to use a registration statement on Form S-3.

Anti-takeover Effects of Delaware Law; Our Certificate of Incorporation and Bylaws; and Nasdaq

Certain Anti-Takeover Provisions of Delaware Law
We are subject to the provisions of Section 203 of the Delaware General Corporation Law regulating corporate takeovers. This statute prevents certain Delaware corporations, under certain circumstances, from engaging in a "Merger" with:
		
	•
	a stockholder who owns 15% or more of our outstanding voting stock (otherwise known as an "interested stockholder");

		
	•
	an affiliate of an interested stockholder; or

		
	•
	an associate of an interested stockholder, for three years following the date that the stockholder became an interested stockholder.

        A "Merger" includes a merger or sale of more than 10% of our assets. However, the above provisions of Section 203 do not apply if:
		
	•
	Our Board approves the transaction that made the stockholder an "interested stockholder," prior to the date of the transaction;

		
	•
	after the completion of the transaction that resulted in the stockholder becoming an interested stockholder, that stockholder owned at least 85% of our voting stock outstanding at the time the transaction commenced, other than statutorily excluded shares of common stock; or

		
	•
	on or subsequent to the date of the transaction, the Merger is approved by our Board and authorized at a meeting of its stockholders, and not by written consent, by an affirmative vote of at least two-thirds of the outstanding voting stock not owned by the interested stockholder.

Authorized but Unissued Capital Stock
         Delaware law does not require stockholder approval for any issuance of authorized shares. However, the listing requirements of Nasdaq, which would apply so long as the common stock remains listed on Nasdaq, require stockholder approval of certain issuances equal to or exceeding 20% of the then outstanding voting power or then outstanding number of shares of common stock. These additional shares may be used for a variety of corporate purposes, including future public offerings, to raise additional capital or to facilitate acquisitions.

One of the effects of the existence of unissued and unreserved common stock or preferred stock may be to enable our Board to issue shares to persons friendly to current management, which issuance could render more difficult or discourage an attempt to obtain control of us by means of a merger, tender offer, proxy contest or otherwise, and thereby protect the continuity of our management and possibly deprive the stockholders of opportunities to sell their shares of common stock at prices higher than prevailing market prices.
Rule 144
        Pursuant to Rule 144, a person who has beneficially owned restricted shares of our common stock or warrants for at least six months would be entitled to sell their securities provided that (i) such person is not deemed to have been one of our affiliates at the time of, or at any time during the three months preceding, a sale and (ii) we are subject to the Exchange Act periodic reporting requirements for at least three months before the sale and have filed all required reports under Section 13 or 15(d) of the Exchange Act during the 12 months (or such shorter period as we were required to file reports) preceding the sale.
        Persons who have beneficially owned restricted shares of our common stock or warrants for at least six months but who are our affiliates at the time of, or at any time during the three months preceding, a sale, would be subject to additional restrictions, by which such persons would be entitled to sell within any three-month period only a number of securities that does not exceed the greater of:
		
	•
	1% of the total number of shares of common stock then outstanding; or

		
	•
	the average weekly reported trading volume of the common stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to the sale.

        Sales by our affiliates under Rule 144 are also limited by manner of sale provisions and notice requirements and to the availability of current public information about us.
Restrictions on the Use of Rule 144 by Former Shell Companies
        Rule 144 is not available for the resale of securities initially issued by shell companies (other than business combination related shell companies) or issuers that have been at any time previously a shell company, such as us, unless the following conditions are met:

		
	•
	the issuer of the securities that was formerly a shell company has ceased to be a shell company;

		
	•
	the issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act;

		
	•
	the issuer of the securities has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding 12 months (or such shorter period that the issuer was required to file such reports and materials), other than Current Reports on Form 8-K; and

		
	•
	at least one year has elapsed from the time that the issuer filed current Form 10 type information with the SEC reflecting its status as an entity that is not a shell company.

        As of the date hereof, we satisfy all four of the above conditions.
Stockholder Rights Plan
We have adopted a stockholder rights plan (the “Rights Agreement”), commonly referred to as a poison pill. The Rights Agreement is designed to reduce the likelihood that a potential acquirer would gain control of the Company by open market accumulation or other tactics without paying an appropriate premium for all of the Company’s shares. Under the plan, each share of our common stock issued before the occurrence of the events referred to in the next sentence is accompanied by the right described in the next sentence. Each right entitles stockholders to buy, upon occurrence of certain events, one one-thousandth of a share of a new series of participating preferred stock, Series A Junior Participating Preferred Stock, par value $0.0001 per share (the “Preferred Shares”), at a price of $10.00 per one-one thousandth of a Preferred Share, subject to adjustment as provided in the stockholder rights plan. The rights generally will be exercisable only if a person or group acquires beneficial ownership of 20% or more of our common stock, or commences a tender or exchange offer that, upon consummation, would result in a person or group owning 20% or more of our common stock, subject to certain exceptions. Under certain circumstances the rights are redeemable at a price of $0.0000001 per right. Unless earlier exchanged, redeemed, amended or exercised, the rights will expire on the close of business on December 31, 2020. 

A summary of the terms of the Rights Agreement and the rights prescribed by the Certificate of Designations follows. This description is only a summary, and is not complete, and should be read together with the entire Rights Agreement, which has been incorporated by reference to the Annual Report on Form 10-K of which this Exhibit is a part.Exhibit

Exhibit 10.1
U.S. SMALL BUSINESS ADMINISTRATION PAYCHECK PROTECTION NOTE
	
		
	SBA Loan #
	1296737200

	SBA Loan Name
	Yield10 Bioscience, Inc.

	Date
	4/17/2020

	Loan Amount
	$332,800.00

	Fixed Interest Rate
	1.0%

	Borrower
	YIELD10 BIOSCIENCE, INC.

	Lender
	Citizens Bank N.A.
1 Citizens Plaza
Providence, RI 02903

		
	1.
	PROMISE TO PAY:

In return for the Loan, Borrower promises to pay to the order of Lender the amount of
332,800.00          Dollars, 
interest on the unpaid principal balance, and all other amounts required by this Note.
		
	2.
	DEFINITIONS:

“Forgiveness Period” means the 8-week period beginning on the date of first disbursement of the Loan.
“Loan” means the loan evidenced by this Note.
“Loan Documents” means the documents related to this loan signed by Borrower.
“Program” means the Paycheck Protection Program created by the Coronavirus Aid, Relief, and Economic Security Act, also known as the “CARES Act” (P.L. 116-136).
“SBA” means the Small Business Administration, an Agency of the United States of America.
		
	3.
	LOAN FORGIVENESS; PAYMENT TERMS:

		
	A.
	Loan Forgiveness:  Borrower may apply to Lender for forgiveness of the amount due on the Loan in an amount equal to the sum of the following costs incurred by Borrower during the 8-week period beginning on the date of first disbursement of the Loan:

		
	(i)
	Payroll costs

		
	(ii)
	Any payment of interest on a covered mortgage obligation (which shall not include any prepayment of or payment of principal on a covered mortgage obligation)

		
	(iii)
	Any payment on a covered rent obligation

		
	(iv)
	Any covered utility payment

The amount of loan forgiveness shall be calculated (and may be reduced) in accordance with the requirements of the Program, including the provisions of Section 1106 of the CARES Act.  Not more than 25% of the amount forgiven can be attributable to non-payroll costs.  If Borrower has received an SBA Economic Injury Disaster Loan (“EIDL”) during the period between January 1, 2020 and April 4, 2020 and used the proceeds of that EIDL for payroll costs, that amount shall be subtracted from the loan forgiveness amount.
Forgiveness will be subject to Borrower’s submission to Lender of information and documentation as required by the SBA and Lender.
		
	B.
	Submission of Information and Documents:  Forgiveness will be subject to Borrower’s submission to Lender of information and documentation as required by the SBA and Lender.  Not before July 1, 2020 and by August 15, 2020, Borrower shall provide Lender with information, in form and substance acceptable to Lender, specifying the amount of forgiveness Borrower requests, together with all documentation required by the CARES Act, the SBA and/or Lender to evidence and/or verify such information.  Required information shall include, without limitation:

		
	(i)
	the total dollar amount of payroll costs during the Forgiveness Period and the dollar amounts of covered mortgage interest payments, covered rent payments and covered utilities for the Forgiveness Period to the extent Borrower seeks forgiveness for these costs.

		
	(ii)
	the average number of full-time equivalent employees of Borrower per month during (a) the period from February 15, 2020 through June 30, 2020 (the “Covered Period”); (b) the same period in 2019, and (c) if the average number of full-time equivalent employees is lower than the average number for the period described in subsection (ii)(b) above, the period from January 1, 2020 through February 29, 2020;

		
	(iii)
	the number of full-time equivalent employees of Borrower as of February 15, 2020, April 26, 2020 and June 30, 2020;

		
	(iv)
	the total amount of salary and wages during the Covered Period and during the fourth calendar quarter of 2019 of each employee who had the amount or rate of such salary and wages reduced by more than 25% during the Covered Period from the amount or rate in the fourth quarter of 2019 (each, a “Lowered Employee”);

		
	(v)
	the rate of salary and wages of each Lowered Employee as of February 15, 2020, April 26, 2020 and June 30, 2020; and

		
	(vi)
	such further information and documents as Lender or the SBA shall require.

		
	C.
	Initial Deferment Period:  No payments are due on the Loan for 6 months from the date of first disbursement of the Loan.  Interest will continue to accrue during the deferment period.

		
	D.
	Maturity.  This Note will mature two years from date of first disbursement of the Loan.

		
	E.
	Payments from End of Deferment Period through Maturity Date:  To the extent the Loan is not forgiven during the deferment period or thereafter, the outstanding balance of the Loan, and interest thereon, shall be repaid in eighteen substantially equal monthly payments of principal and interest, commencing on the first business day after the end of the deferment period.

		
	F.
	Payment Authorization:  Borrower hereby authorizes Lender to initiate payments from Borrower’s bank account, by wire or ACH transfer, for each monthly or other payment required hereunder.

In the event any such payment is unsuccessful, Borrower shall remain liable for such payment and shall take all steps required to make such payment.
		
	G.
	Interest Computation; Repayment Terms:  The interest rate on this Note is one percent per year.  The interest rate is fixed and will not be changed during the life of the Loan.  Interest will be calculated based upon actual days over a 365-day year.

		
	H.
	Payment Allocation:  Lender will apply each installment payment first to pay interest accrued to the day Lender received the payment, then to bring principal current, and will apply any remaining balance to reduce principal.

		
	I.
	Loan Prepayment:  Notwithstanding any provision in this Note to the contrary, Borrower may prepay this Note at any time without penalty.  Borrower may prepay 20 percent or less of the unpaid principal balance at any time without notice.  If Borrower prepays more than 20 percent and the Loan has been sold on the secondary market, Borrower must:  (i) give Lender written notice; (ii) pay all accrued interest; and (iii) if the prepayment is received less than 21 days from the date Lender received the notice, pay an amount equal to 21 days interest from the date Lender received the notice, less any interest accrued during the 21 days and paid under (ii) of this paragraph.  If Borrower does not prepay within 30 days from the date Lender received the notice, Borrower must give Lender a new notice.

		
	4.
	NON-RECOURSE:  Lender and SBA shall have no recourse against any individual shareholder, member or partner of Borrower for non-payment of the loan, except to the extent that such shareholder, member or partner uses the loan proceeds for an unauthorized purpose.

		
	5.
	USE OF PROCEEDS:

Borrower represents and warrants that all proceeds of the Loan will be used for the following eligible business purposes, as required by the CARES Act:  (I) payroll costs; (II) costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums; (III) employee salaries, commissions, or similar compensations; (IV) payments of interest on any mortgage obligation (which shall not include any prepayment of or payment of principal on a mortgage obligation); (V) rent (including rent under a lease agreement); (VI) utilities; and (VII) interest on any other debt obligations that were incurred before February 15, 2020, provided that not less than 75% of expended Loan proceeds shall be devoted to items (I)-(III) above.
		
	6.
	DEFAULT:

Borrower is in default under this Note if Borrower does not make a payment when due under this Note, or if Borrower:
		
	A.
	Fails to do anything required by this Note and other Loan Documents;

		
	B.
	Does not disclose, or anyone acting on its behalf does not disclose, any material fact to Lender or SBA;

		
	C.
	Makes, or anyone acting on its behalf makes, a materially false or misleading representation to Lender or SBA;

		
	D.
	Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender’s prior written consent;

		
	E.
	Does any of the following after Lender makes a determination (an “Adverse Forgiveness Determination”) that the Loan is not entitled to full forgiveness (or in such other period as specified below):

		
	(i)
	Defaults on any other loan with Lender;

		
	(ii)
	Defaults on any loan or agreement with another creditor, if Lender believes the default may materially affect Borrower’s ability to pay this Note;

		
	(iii)
	Fails to pay any taxes when due;

		
	(iv)
	Becomes the subject of a proceeding under any bankruptcy or insolvency law;

		
	(v)
	Has a receiver or liquidator appointed for any part of their business or property;

		
	(vi)
	Makes an assignment for the benefit of creditors;

		
	(vii)
	Has any adverse change in financial condition or business operation from the date of this Note that continues after the Adverse Forgiveness Determination and that Lender believes may materially affect Borrower’s ability to pay this Note; or

		
	(viii)
	Becomes the subject of a civil or criminal action from the date of this Note that continues after the Adverse Forgiveness Determination and that Lender believes may materially affect Borrower’s ability to pay this Note.

		
	7.
	LENDER’S RIGHTS IF THERE IS A DEFAULT:

Upon a default by Borrower, without notice or demand and without giving up any of its rights, Lender may:
		
	A.
	Require immediate payment of all amounts owing under this Note; or

		
	B.
	File suit and obtain judgment.

		
	8.
	LENDER’S GENERAL POWERS:

Without notice and without Borrower’s consent, Lender may:
		
	A.
	Incur expenses to collect amounts due under this Note and enforce the terms of this Note or any other Loan Document.  Among other things, the expenses may include reasonable attorney’s fees and costs.  If Lender incurs such expenses, it may demand immediate repayment from Borrower or add the expenses to the principal balance; and

		
	B.
	Take any action necessary to collect amounts owing on this Note.

		
	9.
	WHEN FEDERAL LAW APPLIES:

When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations.  Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes.  By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability.  As to this Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt federal law.
		
	10.
	SUCCESSORS AND ASSIGNS:

Under this Note, Borrower includes the original Borrower’s successors, and Lender includes the original Lender’s successors and assigns.
		
	11.
	GENERAL PROVISIONS:

		
	A.
	All individuals and entities signing this Note are jointly and severally liable.

		
	B.
	Borrower waives all suretyship defenses.

		
	C.
	Borrower must sign all documents necessary at any time to comply with the Loan Documents.

		
	D.
	Lender may exercise any of its rights separately or together, as many times and in any order it chooses.  Lender may delay or forgo enforcing any of its rights without giving up any of them.

		
	E.
	Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms of this Note.

		
	F.
	If any part of this Note is unenforceable, all other parts remain in effect.

		
	G.
	To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment, demand, protest, and notice of dishonor.  Borrower also waives any defenses based upon any claim that Lender did not obtain any guarantee or collateral.

		
	12.
	STATE-SPECIFIC PROVISIONS:

		
	13.
	ARBITRATION CLAUSE:

Borrower agrees to the Arbitration Clause attached as Exhibit A.  Lender also agrees to the Arbitration Clause.
		
	14.
	BORROWER’S NAME AND SIGNATURE:

By signing below, each individual or entity becomes obligated under this Note as Borrower.
BORROWER:  YIELD10 BIOSCIENCE, INC.
/s/ Lynne Brum    
LYNNE BRUM, Authorized Signer

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