Document:

Ex10_15

		
			Exhibit 10.15
		

		
			 
		

		
			
		

		
			 
		

			
					
						SBA Loan#

					
					
						REDACTED

				
	
					
						BOKF Loan#

					
					
						REDACTED

				
	
					
						SBA Loan Name

					
					
						SBPP – SBA Paycheck Protection Program

				
	
					
						Date

					
					
						April 16, 2020

				
	
					
						Loan Amount

					
					
						$526,700.00

				
	
					
						Interest Rate

					
					
						1.00%

				
	
					
						Maturity Date

					
					
						April 16, 2022

				
	
					
						Borrower

					
					
						Lost Creek ISR LLC

				
	
					
						Lender

					
					
						BOKF, NA dba Bank of Oklahoma

				

		
			 
		

		
			1.   PROMISE TO PAY:
		

		
			In return for the Loan, Borrower promises to pay to the order of Lender the amount of $526,700.00, all accrued interest on the unpaid principal balance, and all other amounts required by this Note.
		

		
			 
		

		
			2.   DEFINITIONS:
		

		
			“Loan” means the loan evidenced by this Note.
		

		
			“Loan Documents” means this Note and all other documents, agreements, certificates, instruments and acknowledgements evidencing and/or related to the Loan.
		

		
			“SBA” means the Small Business Administration, an Agency of the United States of America.
		

		
			 
		

		
			3.   PAYMENT TERMS:
		

		
			Borrower must make all payments at the place Lender designates. The payment terms for this Note are: 
		

		
			 
		

		
			The interest rate is 1.000% per year. The interest rate may only be changed in accordance with SOP 50 10.
		

		
			 
		

		
			From the date hereof (“Effective Date”) to the date that is six (6) months from the Effective Date, and so long as no Default has occurred and is continuing, no payments of principal or interest will be required under this Note. Notwithstanding the foregoing payment deferral, interest shall accrue on the Loan from the Effective Date through the date the Loan is paid in full or fully forgiven in accordance with the provisions hereof.
		

		
			
		

		
			

		 

		

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			Commencing with the payment due on the date that is seven (7) months from the Effective Date (the “Payment Commencement Date”), and continuing on the same day of each month thereafter, Borrower will pay this Loan in consecutive monthly payments of principal and interest, with each payment equal to the “Payment Amount” (defined below). On the Maturity Date, Borrower shall pay the remaining balance of principal and all accrued interest and other amounts due hereunder in full.
		

		
			 
		

		
			The “Payment Amount” shall be an amount determined by Lender on the Payment Commencement Date, and shall be equal to the total outstanding amount of principal and accrued interest hereunder on such date, amortized over a period of eighteen (18) months at the interest rate of 1.000% per annum.
		

		
			 
		

		
			Lender will apply each payment first to pay interest accrued to the day Lender receives the payment, then to bring principal current, then to pay any late fees or other expenses, and will apply any remaining balance to reduce principal.
		

		
			 
		

		
			PAYMENTS SHOULD BE REMITTED TO: BOKF, NA dba Bank of Oklahoma, P.O. Box 248818, Oklahoma City, OK 73124-8818. If a payment is made consistent with the written payment instructions provided by Lender and received on a business day by 5:00 p.m. local time, the payment will be applied that day. If a payment is received on a business day after 5:00 p.m., the payment may be applied the following business day.
		

		
			 
		

		
			Late Charge; Default Interest: If a payment on this Note is more than 15 days late, Lender may charge Borrower a late fee of up to 5.00% of the unpaid portion of the regularly scheduled payment. If any Default shall occur, the interest rate on the Loan may, in Lender’s sole discretion, be increased to an amount equal to the stated Interest Rate plus ten percent (10%) per annum.
		

		
			 
		

		
			4.   DEFAULT:  Borrower is in default (“Default”) under this Note if Borrower does not make any payment when due under this Note, or if Borrower:
		

		
			A.   Fails to do anything required by this Note and other Loan Documents;
		

		
			B.   Defaults on any other loan with Lender;
		

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

		
			D.   Makes, or anyone acting on their behalf makes, a materially false or misleading representation to Lender or SBA (whether in any Loan Document, any application or submission in regards to the Loan or the PPP (defined below) or otherwise);
		

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

		
			F.   Fails to pay any taxes when due;
		

		
			G.   Becomes the subject of a proceeding under any bankruptcy or insolvency law;
		

		
			H.   Has a receiver or liquidator appointed for any part of their business or property;
		

		
			I.    Makes an assignment for the benefit of creditors;
		

		
			J.    Has any adverse change in financial condition or business operation that Lender believes may materially affect Borrower’s ability to pay this Note;
		

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

		
			L.   Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower’s ability to pay this Note.
		

		
			
		

		
			

		 

		

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			5.   LENDER’S RIGHTS IF THERE IS A DEFAULT: 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 and the other Loan Documents;
		

		
			B.   Collect all amounts owing from any Borrower, including any default interest;
		

		
			C.   File suit and obtain judgment; or
		

		
			D.   Take any other action permitted by law, in equity or otherwise.
		

		
			 
		

		
			6.   LENDER’S GENERAL POWERS: Without notice and without Borrower’s consent, Lender may take the following action (which is not an exhausted list of Lender’s general power):
		

		
			A.   Incur expenses and other costs 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, Borrower shall pay such amounts to Lender within five (5) days after written demand. Any such costs, expenses or other amounts shall be added to the indebtedness evidenced by this Note;
		

		
			B.   Release anyone obligated to pay this Note; and
		

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

		
			 
		

		
			7.   RIGHT TO SEEK LOAN FORGIVENESS. In accordance with the provisions of the PPP loan program, Borrower may apply for forgiveness of all or a portion of the Loan which was used by Borrower, during the eight (8) week period from the initial disbursement of the Loan, to pay (i) eligible payroll costs, (ii) payment of interest on a mortgage obligation incurred before February 15, 2020 (but excluding any principal payments); (iii) payment of rent obligations under leases dated before February 15, 2020; and (iv) payments of utility obligations under service agreements dated before February 15, 2020, provided, at least seventy-five percent (75%) of the forgivable amount must be used for payroll costs. As a material inducement to Lender making the Loan, Borrower acknowledges and agrees that neither Lender nor any of its employees, officers, directors, shareholders, agents, representatives and attorneys has made any promises or assurances that the Loan (or any portion thereof) will be forgiven and Borrower completely and unconditionally accepts all risks as to whether the Loan (or any portion thereof) may actually be forgiven under the CARES Act, the PPP or otherwise and unconditionally and irrevocably waives any and all rights, claims and causes of action against Lender and its employees, officers, directors, shareholders, agents, representatives and attorneys in connection therewith (whether existing now or in the future and whether under law, in equity or otherwise). Borrower is directed to the CARES Act (defined below), the PPP and all rules or guidance issued therewith for a detailed breakdown of eligible expenses and payments and a complete list of all requirements and conditions to request Loan forgiveness. To be eligible for consideration for Loan forgiveness, the Borrower must submit all required evidence and written documentation as well as a Borrower’s attestation of such payments as required under the PPP and all rules or guidance issued therewith and such other documents as may otherwise be requested by Lender to process and consider Borrower’s request for Loan forgiveness. The decision to forgive or not forgive all or any portion of the Loan shall be made by the Lender in its sole discretion.
		

		
			 
		

		
			8.   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
		

		
			
		

		
			

		 

		

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			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.
		

		
			 
		

		
			When Lender is the holder, this Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Oklahoma without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of Oklahoma. If there is a lawsuit, Borrower agrees upon Lender’s request to submit to the jurisdiction of the courts of Tulsa County, State of Oklahoma.
		

		
			 
		

		
			9.   SUCCESSORS AND ASSIGNS: Under this Note, Borrower includes its successors, and Lender includes its successors and assigns (including, without limitation, the SBA). Borrower may not assign this Note or any other Loan Document (whether directly, indirectly, by operation of law or otherwise) without Lender’s prior written consent.
		

		
			 
		

		
			10.   REPRESENTATIONS AND WARRANTIES. Borrower hereby represents and warrants to the Lender that: (a) it possesses all requisite power and authority to execute, deliver and comply with the terms of this Note and the other Loan Documents to which it is a party; (b) this Note and the other Loan Documents have been duly authorized and approved by all requisite corporate or other action on the part of the Borrower; (c) no additional consent of any other entity or person (other than the Lender) is required for this Note and the other Loan Documents to be effective; (d) the execution and delivery of this Note and the other Loan Documents do not violate the constituent organizational governance documents of Borrower, or any other contract or agreement to which Borrower or any of its assets is subject; (e) the representations and warranties contained in the Loan application and the Loan Documents are true and correct in all material respects on and as of the Effective Date and on the date of disbursement of the Loan; and (f) Borrower is in full compliance with all covenants and agreements applicable to it as contained in this Note and each other Loan Document. The representations and warranties made in this Note and each other Loan Document shall survive the execution and delivery hereof.
		

		
			 
		

		
			11.   GENERAL PROVISIONS:
		

		
			A.   Borrower waives all suretyship defenses.
		

		
			B.   Borrower must sign all documents necessary at any time to comply with the Loan Documents. Borrower agrees to provide Lender with such additional information and documentation and take such other action as may be requested by Lender from time to time during the Loan to assure and confirm the rights created (or intended now or hereafter to be created) under this Note and the other Loan Documents or for carrying out the intention or facilitating the performance of the terms of this Note or any Loan Document.
		

		
			C.   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 or waiving any of them. Any waiver, forbearance or modification may only be made by a written document expressly signed by Lender and only to the extent set forth therein.
		

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

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

		
			F.   Borrower covenants and agrees to comply with all rules, regulations and requirements of the PPP and all rules, guidance and regulations therewith whether existing now or in the future including, without limitation, as to the use of Loan proceeds, document retention and submission and compliance requirements. This Loan is a business loan and has been made by the Lender, and accepted by Borrower, in accordance with the PPP and all rules, guidance and regulations therewith.
		

		
			
		

		
			

		 

		

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			G.   To the extent allowed by law, Borrower waives all demand 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 that all or any portion of this Loan is not subject to forgiveness.
		

		
			H.   In consideration of the Lender’s extension of the Loan to the Borrower, and other agreements and considerations the adequacy and sufficiency of which are hereby acknowledged, Borrower hereby agrees to indemnify, defend and hold Lender and its employees, officers, directors, shareholders, agents, representatives and attorneys harmless from and against all claims, costs, expenses, fees (including, without limitation, attorneys’ fees and expenses), liabilities, claims, damages, losses, actions and causes of action arising from, related to or suffered by Lender in connection with the Loan, Borrower’s use of the proceeds of the Loan, the relationship of Borrower and Lender, or any transaction contemplated by this Note or any other Loan Document (including, without limitation, Borrower’s request for full or partial Loan forgiveness as provided herein).
		

		
			I.    If the interest or charges in the nature of interest, if any, provided for by this Note or by any other Loan Document, contravenes a legal or statutory limitation applicable to the Loan, if any, Borrower will pay only such amounts as legally permitted; provided,  however, that if the defense of usury and all similar defenses are unavailable to Borrower, Borrower will pay all amounts provided for in this Note and in the other Loan Documents. If, for any reason, amounts in excess of the amounts permitted in the preceding sentence have been paid, received, collected or applied to this Note, whether by reason of acceleration or otherwise, then, and in that event, any such excess amounts will be applied to principal, unless principal has been fully paid, in which event such excess amount will be refunded to Borrower.
		

		
			J.    Time is of the essence hereof with respect to the dates, terms and conditions of this Note and the other Loan Documents.
		

		
			K.   Borrower acknowledges that in executing this Note, Borrower is not relying on, and has not relied on, any representation or statement (whether written or oral) by Lender or any of its affiliates, employees, officers, agents or representatives including, without limitation, respecting the benefits of, and Borrower’s choice of, participating in the PPP, Borrower’s ability to receive loan forgiveness under the PPP or any other requirements or benefits of the PPP. Borrower further acknowledges that this Note and the other Loan Documents may only be amended or modified, or the provisions hereof or thereof waived or supplemented, by an instrument in writing signed by the Borrower and Lender.
		

		
			L.   THIS NOTE AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.
		

		
			 
		

		
			12.   EXECUTION/EFFECTIVENESS. Delivery of an executed counterpart of a signature page of this Note and any other Loan Document by telecopy, emailed pdf., tif. or any other electronic means that reproduces an image of the actual executed signature page shall be effective as delivery of a manually executed counterpart of this Note and such other Loan Documents. The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to any document to be signed in connection with this Note, the other Loan Documents and the transactions contemplated hereby and thereby 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. Upon the written request of Lender, Borrower shall promptly deliver to Lender an original manually executed original of
		

		
			
		

		
			

		 

		

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			this Note and such other Loan Documents and Borrower’s failure to provide such original signatures in a reasonable period of time (as determined by Lender in its discretion) shall constitute a Default hereunder. For purposes hereof, an “Electronic Signature” means an electronic sound, 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.
		

		
			 
		

		
			Lender is making this loan pursuant to the Paycheck Protection Program (the “PPP”) created by Section 1102 of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and governed by the CARES Act, section 7(a)(36) of the Small Business Act, any rules or guidance that has been issued by the Small Business Administration implementing the PPP, or any other applicable Loan Program Requirements, as defined in 13 CFR § 120.10, as amended from time to time (collectively “PPP Loan Program Requirements”). Notwithstanding anything to the contrary herein, the Borrower (a) agrees that this Promissory Note shall be interpreted and construed to be consistent with the PPP Loan Program Requirements and (b) authorizes the Lender to unilaterally amend any provision of this Promissory Note to the extent required to comply with the PPP Loan Program Requirements.
		

		
			 
		

		
			BORROWER’S NAME(S) AND SIGNATURES(S):
		

		
			 
		

		
			By signing below, each individual or entity executing this Note is attesting to his/her/their authority to execute this Note on behalf of the Borrower and bind the Borrower hereunder. As of the date hereof, the Borrower is fully obligated under this Note for all intents and purposes hereof.
		

		
			 
		

		
			 
		

		
			BORROWER:
		

		
			 
		

		
			Lost Creek ISR LLC
		

		
			 
		

		
			 
		

			
					
						X

					
					
						/s/ Roger L. Smith

					
					
						 

				

		
			 
		

		
			BY Roger L. Smith, President
		

		 

		

			6nlst_Ex10-1

		
			FIRST AMENDMENT TO INVESTMENT AGREEMENT
		

		
			This First Amendment to Investment Agreement, dated as of January 23, 2020 (the “Amendment”), is entered into by and among TR Global Funding V, LLC, a Delaware limited liability company managed by TR Global Associates V, LLC (together with its successors and assigns, “Investor”), and Netlist, Inc., a Delaware corporation (together with its successors and assigns, “Plaintiff”).
		

		
			RECITALS
		

		
			WHEREAS, Investor and Plaintiff entered into that certain Investment Agreement, dated as of May 3, 2017 (as the same may be further amended, restated, supplemented or otherwise modified from time to time in accordance with the terms thereof, the “Original Agreement”); 
		

		
			WHEREAS, Plaintiff is the sole and exclusive owner U.S. Patent Nos. 8,756,364, 8,516,185, 8,001,434, 8,359,501, 8,689,064, and 8,489,837 (collectively, the “Original Patents”) and 9,535,623, and 9,606,907 (the “Continuation Patents” and, together with the Original Patents, the “Patents”); 
		

		
			WHEREAS, Plaintiff filed causes of action for infringement of Patents against SK hynix Inc. and its Affiliates (as defined below) (the “Defendant”), including in the International Trade Commission Inv. No. 337-TA-1023, alleging that Defendant’s products infringe the Original Patents, and in the U.S. District Court for Central District of California Case No. 8-16-cv-1605, alleging that Defendant’s products infringe the Patents; and
		

		
			WHEREAS, Investor and Plaintiff desire to revise certain economic terms of the Original Agreement.
		

		
			NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the parties hereto hereby agree as follows:
		

			
	
			
				 1.
			Definitions.  Any capitalized term used herein and not defined herein shall have the meaning assigned to it in the Original Agreement.

			
	
			
				 2.
			Amendments to the Original Agreement.  Subject to the terms and conditions hereof, the Original Agreement is hereby amended as follows:

			
	
			
				 (a)
			Section 6.5.1 of the Original Agreement is amended by adding an additional Section 6.5.1.1 as follows:

		
			“6.5.1.1Resolution with Defendant.  Notwithstanding anything in Section 6.5.1. to the contrary, but subject to the last paragraph of this Section 6.5.1.1, upon (x) the occurrence of the events described in clause (c) of the definition of “Termination Date” and (y) receipt by Plaintiff of a Cash Recovery from a Reference Entity on or before [***], then such Cash Recovery shall be paid directly into the Proceeds Account and distributed as follows and not as set forth in Section 6.5.1:
		

		
			(a)First, upon a Cash Recovery as received by or on behalf of Plaintiff, all such Cash Recoveries, net of up to [***] of any New Litigation costs, to Investor until Investor has received [***] (regardless of any tax payments that may be due to Korean tax authorities).  For the purposes of this Section “New Litigation Costs” means all costs and expenses incurred following [***] in connection with litigating, licensing, enforcing or defending patents with respect to the Defendant including without limitation all costs and expenses related to the Claims, the Litigation and any related appeals (provided that if Investor would receive less than [***] of Cash Recoveries pursuant to this Section 6.5.1.1(a), the amount of New Litigation Costs shall be reduced, for purposes of this Section 6.5.1.1(a), to the amount that would result in Investor’s receipt of [***] pursuant to this Section 6.5.1.1(a));
		

		
			(b)Second, after the payment to Investor in 6.5.1.1(a) and any required payments to Korean taxing authorities (it being agreed and understood that Plaintiff will use its commercially reasonable best efforts, consistent with all legal requirements, to minimize any payments to Korean taxing authorities), the next [***] of Cash Recoveries to Plaintiff; and
		

		
			

		 

		

			Certain information has been omitted from this document because it is (i) not material and (ii) would be competitively harmful if publicly disclosed, and has been marked with “[***]” to indicate where omissions have been made.

		

		

		
			(c)Third, after the payments in 6.5.1.1(a) and (b), [***] of all remaining Cash Recoveries to Investor, and [***] of all remaining Cash Recoveries to Plaintiff.
		

		
			Notwithstanding the foregoing, if at least one of the following three events has not occurred on or before [***], then all Cash Recoveries received thereafter shall be distributed as set forth in Section 6.5.1 and not as in this Section 6.5.1.1:  (i) Plaintiff has received a Cash Recovery, (ii) (a) Plaintiff has filed a new patent infringement lawsuit in U.S. District Court against the Defendant and (b)  following the effective date of this Amendment, Plaintiff has made good faith efforts, in consultation with Investor, to schedule licensing/settlement discussions with Defendant, or (iii) following the effective date of this Amendment, Plaintiff has held licensing/settlement discussions with Defendant in consultation with Investor;  provided, however, that if any of the three events described in the immediately preceding clause has occurred on  or before [***], then Plaintiff and Investor agree to meet and confer for a period of thirty (30) days following [***] to discuss the continued application of this Section 6.5.1.1 and to negotiate the terms of a second amendment to this Agreement (if necessary) and if the parties cannot reach mutually agreeable terms for such a second amendment by [***], then this Section 6.5.1.1 automatically will be deemed deleted and be of no further force and effect after [***], upon which all Cash Recoveries shall be distributed as set forth in Section 6.5.1 and not as in this Section 6.5.1.1.
		

			
	
			
				 3.
			Releases and Termination of Interests.

			
	
			
				 (a)
			Mutual Release.  

			
	
			
				 (i)
			Release by Plaintiff.  Plaintiff acknowledges and confirms that it has no knowledge of any actions, causes of action, claims, demands, damages or liabilities of whatever kind or nature, in law or in equity, against Investor, in any case, arising from any action or failure of Investor to act under any Investment Facility Document on or prior to the date hereof, or of any offset right, counterclaim or defense of any kind against any of its respective obligations, indebtedness or liabilities to Investor under any Investment Facility Document.  Automatically upon the first distribution of the Cash Recovery pursuant to Section 6.5.1.1 of the Amended Agreement (the date of such occurrence, the “Release Date”), Plaintiff unconditionally releases, waives and forever discharges (i) any and all liabilities, obligations, duties, promises or indebtedness of any kind of Investor to Plaintiff, except the obligations required to be performed by Investor under the Original Agreement, as amended hereby (the “Amended Agreement”) on or after the date hereof, and (ii) all claims, offsets, causes of action, suits or defenses of any kind whatsoever (if any), whether arising at law or in equity, whether known or unknown, which Plaintiff might otherwise have against Investor in connection with the Investment Facility Documents or the transactions contemplated thereby, in the case of each of clauses (i) and (ii), on account of any past or presently existing condition, act, omission, event, contract, liability, obligation, indebtedness, claim, cause of action, defense, circumstance or matter of any kind.

			
	
			
				 (ii)
			Release by Investor.  Automatically upon the Release Date, Investor unconditionally releases, waives and forever discharges (i) any and all liabilities, obligations, duties, promises or indebtedness of any kind of Plaintiff to Investor, except the obligations required to be performed by Plaintiff under the Amended Agreement on or after the date hereof, and (ii) all claims, offsets, causes of action, suits or defenses of any kind whatsoever (if any), whether arising at law or in equity, whether known or unknown, which Investor might otherwise have against Plaintiff in connection with the Investment Facility Documents or the transactions contemplated thereby; provided, however, that Investor does not release any claims against Plaintiff (1) arising as a result of a claim asserted against Investor by a Reference Entity or another third party arising from or relating to the subject matter of this Amended Agreement or any Investment Facility Document or (2) arising from or relating to fraud or willful misconduct on Plaintiff’s part at any time.

			
	
			
				 (iii)
			Unknown Claims.  Each Party acknowledges that it may discover facts or law different from, or in addition to, the facts or law that it knows or believes to be true with respect to the claims released in this Section 3(a) and agrees, nonetheless, that this release shall be and remain effective in all respects 

		 

		

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			Certain information has been omitted from this document because it is (i) not material and (ii) would be competitively harmful if publicly disclosed, and has been marked with “[***]” to indicate where omissions have been made.

		

		

			 

		

	notwithstanding such different or additional facts or the discovery of them. Each Party expressly acknowledges and agrees that all rights under Section 1542 of the California Civil Code are expressly waived. That section provides: 

		
			“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.”
		

			
	
			
				 (b)
			Lien Release.  In addition, on the Release Date, (i) subject to 12(e) of the Security Agreement, the Security Agreement and the security interests and licenses created thereby shall terminate and all rights to the Collateral (as defined in the Security Agreement) shall revert to Plaintiff, (ii) Investor agrees to file UCC amendments on or promptly after the Release Date to evidence the termination of the Liens (as defined in the Security Agreement) so released and (iii) Investor will, upon Plaintiff’s request and at Plaintiff’s cost and expense, (A) promptly return to Plaintiff (or whomsoever shall be lawfully entitled to receive the same or as a court of competent jurisdiction shall direct) such of the Collateral as shall not have been sold or otherwise disposed of or applied pursuant to the terms hereof, and (B) promptly execute and deliver to Plaintiff such documents and make such other filings as Plaintiff shall reasonably request to evidence such termination, without representation, warranty or recourse of any kind.

			
	
			
				 4.
			Representations and Warranties Regarding the Status of the Litigation.  [***]

			
	
			
				 5.
			Conditions to Effectiveness.  This Amendment and the amendments set forth in Section 2 of this Amendment shall become effective upon receipt by Investor of this Amendment, duly executed and delivered by Plaintiff and Investor. 

			
	
			
				 6.
			Ratification and Reaffirmation of Investment Facility Documents.  The terms and provisions of the Original Agreement and the other Investment Facility Documents are ratified and confirmed and shall continue in full force and effect without modification, except as expressly amended herein.  Plaintiff hereby agrees that all liens and security interests securing payment and performance of the Obligations are hereby collectively renewed, ratified and brought forward as security for the payment and performance of the Obligations.  Plaintiff and Investor agree that, subject to the terms and conditions hereof, the Amended Agreement and the other Investment Facility Documents shall continue to be legal, valid, binding and enforceable in accordance with their respective terms except as such enforceability may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law). Nothing contained herein shall, by implication or otherwise, be deemed to constitute a waiver or amendment of, or a consent to the departure from, any term, provision or condition of the Amended Agreement and the other Investment Facility Documents, except as expressly set forth herein, or limit, impair or prejudice any right, power or remedy that any party to, or third-party beneficiary of, the Amended Agreement and the other Investment Facility Documents may now or in the future have under such agreement, document or instrument, which shall remain in full force and effect, and Investor hereby reserves all such rights and remedies. 

			
	
			
				 7.
			Representations and Warranties.  To induce Investor to enter into this Amendment, Plaintiff hereby represents and warrants to Investor that: (a) each of the execution, delivery and performance of this Amendment has been authorized by all requisite corporate action on the part of Plaintiff; (b) neither the execution, delivery nor performance of this Amendment will violate the organizational or governing documents of Plaintiff; (c) this Amendment constitutes a legal, valid and binding obligation of Plaintiff, enforceable against Plaintiff in accordance with the terms hereof except as such enforceability may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law); (d) the representations and warranties contained herein are true and correct in all material respects (or in all respects in the case of any representation or warranty which is subject to any materiality qualifier) as of the date hereof and, after giving effect to this Amendment, the representations and warranties contained in the Investment Facility Documents are true and correct in all material 

		 

		

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			Certain information has been omitted from this document because it is (i) not material and (ii) would be competitively harmful if publicly disclosed, and has been marked with “[***]” to indicate where omissions have been made.

		

		

			 

		

	respects (or in all respects in the case of any representation or warranty which is subject to any materiality qualifier) on and as of the date hereof as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date in which case such representations and warranties shall have been true and correct in all material respects (or in all respects in the case of any representation or warranty which is subject to any materiality qualifier) on and as of such earlier date; and (e) both before and after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing under the Original Agreement or the Amended Agreement and the other Investment Facility Documents.

			
	
			
				 8.
			Entire Agreement. This Amendment, together with the Original Agreement and the other Investment Facility Documents, sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and agreements among the parties relating to such subject matter (provided that the Amendment supersedes the Original Agreement only to the extent set forth herein).  None of the terms or conditions of this Amendment may be changed, modified, waived or canceled orally or otherwise, except in writing signed by the parties hereto.

			
	
			
				 9.
			Miscellaneous.

			
	
			
				 (a)
			Continued Effectiveness of the Investment Facility Documents.  This Amended Agreement is limited solely for the purposes and to the extent expressly set forth herein and, except as expressly provided herein, the terms, provisions and conditions of Amended Agreement and the other Investment Facility Documents shall continue in full force and effect and are hereby ratified and confirmed in all respects.  This Amendment shall constitute an Investment Facility Document.

			
	
			
				 (b)
			Counterparts.   This Amendment may be executed in multiple counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts, taken together, shall constitute one and the same agreement.

			
	
			
				 (c)
			Captions.  Section headings are for convenience of reference only and do not affect the interpretation of this Amendment.

			
	
			
				 (d)
			Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, EXCLUSIVE OF THAT JURIDCITION'S CONFLICTS OF LAW PRINCIPLES. 

			
	
			
				 (e)
			Waiver of Jury Trial.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE PARTIES WAIVES THE RIGHT TO TRIAL BY JURY IN ANY PROCEEDING OR DISPUTE OF ANY KIND RELATING IN ANY WAY TO THIS AMENDMENT, THE OTHER INVESTMENT FACILITY DOCUMENTS, OBLIGATIONS OR COLLATERAL, AND EACH PARTY ACKNOWLEDGES THAT THE FOREGOING WAIVER IS A MATERIAL INDUCEMENT TO THE OTHER PARTY TO ENTER INTO THIS AMENDMENT.  EACH PARTY HAS REVIEWED THE FOREGOING WAIVER WITH ITS LEGAL COUNSEL AND HAS KNOWINGLY AND VOLUNTARILY WAIVED ITS JURY TRIAL RIGHT FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  IN THE EVENT OF LITIGATION, THIS AMENDMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

		
			 
		

		
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			Certain information has been omitted from this document because it is (i) not material and (ii) would be competitively harmful if publicly disclosed, and has been marked with “[***]” to indicate where omissions have been made.

		

		

			 

		

		

		
			IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of the date first above written.
		

		
			 
		

		
			 
		

			
					
						 

					
					
						PLAINTIFF:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						NETLIST, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Marc J. Frechette

				
	
					
						 

					
					
						 

					
					
						Name: 

					
					
						Marc J. Frechette

				
	
					
						 

					
					
						 

					
					
						Title: 

					
					
						Chief Licensing Officer

				

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						INVESTOR:

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						TR GLOBAL FUNDING V, LLC

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						/s/ Michael K. Rozen

				
	
					
						 

					
					
						 

					
					
						Name: 

					
					
						Michael K. Rozen

				
	
					
						 

					
					
						 

					
					
						Title:

					
					
						President and CEO

				

		
			 
		

		 

		

			5

		

		

			 

		

		

			Certain information has been omitted from this document because it is (i) not material and (ii) would be competitively harmful if publicly disclosed, and has been marked with “[***]” to indicate where omissions have been made.

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