Document:

exv10w16

Exhibit 10.16 

SEVENTH AMENDMENT

TO

LOAN AND SECURITY AGREEMENT

     THIS SEVENTH AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered into this
31st day of July, 2009 by and between Silicon Valley Bank (“Bank”) and Superconductor Technologies,
Inc., a Delaware corporation (“Borrower”) whose address is 460 Ward Drive, Suite F, Santa Barbara,
CA 93111.

 Recitals

     A. Bank and Borrower have entered into that certain Accounts Receivable Purchase
Agreement dated as of March 28, 2004, as amended by that certain Amendment to Purchase Agreement by
and between Bank and Borrower dated as of April 28, 2004, by that certain Accounts Receivable
Purchase Modification Agreement by and between Bank and Borrower dated as of March 16, 2005, by
that certain Third Amendment to Loan and Security Agreement by and between Bank and Borrower dated
as of June 16, 2006, by that certain Fourth Amendment to Loan and Security Agreement by and between
Bank and Borrower dated as of June 18, 2007, by that certain Fifth Amendment to Loan and Security
Agreement by and between Bank and Borrower dated as of July 31, 2007 and by that certain Sixth
Amendment to Loan and Security Agreement by and between Bank and Borrower dated as of July 31, 2008
(as the same may from time to time be further amended, modified, supplemented or restated, the
“Loan Agreement”).

     B. Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

     C. Borrower has requested that Bank amend the Loan Agreement to (i) extend the maturity date
(ii) reduce the amount of the credit facility and (iii) make certain other revisions to the Loan
Agreement as more fully set forth herein.

     D. Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the
extent, in accordance with the terms, subject to the conditions and in reliance upon the
representations and warranties set forth below.

 Agreement

 Now, Therefore
, in consideration of the foregoing recitals and other
good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and
intending to be legally bound, the parties hereto agree as follows:

     1. Definitions. Capitalized terms used but not defined in this Amendment shall have the
meanings given to them in the Loan Agreement.

 

 

     2. Amendments to Loan Agreement.

          2.1 Section 2.2 (Acceptance of Receivables). The final sentence
of Section 2.2 is amended in its entirety and replaced with the following:

     “Not withstanding the foregoing, in no event shall the aggregate amount of all
Purchased receivables outstanding at anytime exceed

          
Three Million Dollars ($3,000,000).”

          2.2 Section 17 (Term and Termination). The first sentence of
Section 17 is amended in its entirety and replaced with the following:

          “The term of this Agreement shall be through July 12, 2010 unless
terminated in writing by Buyer and Seller.”

     3. Limitation of Amendments.

          3.1 The amendments set forth in Section 2, above, are effective for the purposes set forth
herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any
amendment, waiver or modification of any other term or condition of any Loan Document, or (b)
otherwise prejudice any right or remedy which Bank may now have or may have in the future under or
in connection with any Loan Document.

          3.2 This Amendment shall be construed in connection with and as part
of the Loan Documents and all terms, conditions, representations, warranties, covenants and
agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and
confirmed and shall remain in full force and effect.

     4. Representations and Warranties. To induce Bank to enter into this Amendment, Borrower
hereby represents and warrants to Bank as follows:

          4.1 Immediately after giving effect to this Amendment (a) the representations and warranties
contained in the Loan Documents are true, accurate and complete in all material respects as of the
date hereof (except to the extent such representations and warranties relate to an earlier date, in
which case they are true and correct as of such date), and (b) no Event of Default has occurred and
is continuing;

          4.2 Borrower has the power and authority to execute and deliver this
 Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

          4.3 The organizational documents of Borrower delivered to Bank on
the March 28, 2003 remain true, accurate and complete and have not been amended, supplemented or
restated and are and continue to be in full force and effect;

 

 

          4.4 The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, have been duly
authorized;

          4.5 The execution and delivery by Borrower of this Amendment and
the performance by Borrower of its obligations under the Loan Agreement, as amended by this
Amendment, do not and will not contravene (a) any law or regulation binding on or affecting
Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order,
judgment or decree of any court or other governmental or public body or authority, or subdivision
thereof, binding on Borrower, or (d) the organizational documents of Borrower;

          4.6 The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, do not require any
order, consent, approval, license, authorization or validation of, or filing, recording or
registration with, or exemption by any governmental or public body or authority, or subdivision
thereof, binding on either Borrower, except as already has been obtained or made; and

          4.7 This Amendment has been duly executed and delivered by Borrower and is the binding
obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or
other similar laws of general application and equitable principles relating to or affecting
creditors’ rights.

     5. Counterparts. This Amendment may be executed in any number of counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same instrument.

     6. Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and
delivery to Bank of this Amendment by each party hereto, (b) Borrower’s payment of an amendment fee
in an amount equal to $15,000, (c) Bank’s receipt of the Acknowledgment of Amendment and
Reaffirmation of Guaranty substantially in the form attached hereto as Schedule 1, duly executed
and delivered by each Guarantor.

[Signature page follows.]

 

 

      In Witness Whereof, the parties hereto have caused this
Amendment to be duly executed and delivered as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BANK	 	 	 	BORROWER	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Silicon Valley Bank	 	 	 	Superconductor Technologies, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/  Ben Fargo	 	 	 	By:	 	/s/ William Buchanan	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Ben Fargo
	 	 	 	 	 	Name:
	 	William Buchanan	 	 
	 

	 	Title:
	 	VP/Relationship Manager
	 	 	 	 	 	Title:
	 	Controller	 	 

 

 

Schedule 1

ACKNOWLEDGMENT OF AMENDMENT

AND REAFFIRMATION OF GUARANTY

     Section 1. Guarantor hereby acknowledges and confirms that it has reviewed and approved
the terms and conditions of the Seventh Amendment to Loan and Security Agreement dated as of even
date herewith (the “Amendment”).

     Section 2. Guarantor hereby consents to the Amendment and agrees that the Guaranty relating to
the Obligations of Borrower under the Loan Agreement shall continue in full force and effect, shall
be valid and enforceable and shall not be impaired or otherwise affected by the execution of the
Amendment or any other document or instrument delivered in connection herewith.

     Section 3. Guarantor represents and warrants that, after giving effect to the Amendment, all
representations and warranties contained in the Guaranty are true, accurate and complete as if made
the date hereof.

Dated as of July 31, 2009

	 	 	 	 	 
	GUARANTOR
	Conductus, Inc.

 	 
	 	By:  	/s/ William Buchanan
 	 
	 	 	Name:  	William Buchanan	 
	 	 	Title:  	Controllerexv10w29

Exhibit 10.29

SECOND AMENDMENT TO LEASE

     This Second Amendment to Lease (this “Second Amendment”) is made this 19th day
of January, 2009 by and between 1200 ENTERPRISES LLC (“Lessor”) and SUPERCONDUCTOR TECHNOLOGIES,
INC. (“Lessee”).

Recitals

     A. Lessor and Lessee are parties to that certain Standard Industrial/Commercial
Multi-Tenant Lease Net dated 1 June 2001 (the “Lease”) for the premises commonly known as 460 Ward
Drive, Suites A, B, D, F and approximately one-half of Suite E, Santa Barbara, California as more
particularly described in the Lease (the “Premises”).

     B. Lessor and Lessee were parties to that certain Standard Industrial/Commercial Multi-Tenant
Lease Net dated 22 January 2003 (the “Warehouse Lease”) for the premises commonly known as 460 Ward
Drive, Suite C, Santa Barbara, California as more particularly described in the Warehouse Lease
(the “Warehouse Premises”). The Warehouse Lease was amended by a First Amendment to Lease dated 22
March 2004 (the “Warehouse Amendment”). On or about 1 October 2007, the Lease was amended by a
First Amendment to Lease (the “First Amendment”) which incorporated the Warehouse Premises into the
Premises, the Warehouse Lease and the Warehouse Amendment were terminated, and the rent provisions
of the Lease were amended accordingly.

     C. Lessor and Lessee have agreed that Lessee has exercised its first option to extend the
Lease pursuant to paragraph 50.

     D. Lessor and Lessee have agreed to a fair market rent which will be effective with this
Second Amendment and to modify the provisions related to annual adjustment of rent.

     E. Capitalized terms used herein and not otherwise defined shall have the meanings given to
them in the Lease.

     NOW, THEREFORE, in consideration of the mutual covenants of the respective parties thereto, it
is agreed as follows:

     1. Amendment of Lease. The Lease is hereby amended as follows:

	 	1.1	 	The Expiration Date in Paragraph 1.3 is hereby amended to be “30 November
2016.”
	 
	 	1.2	 	Paragraph 1.5 is hereby amended to read as follows: “Base Rent: Ninety One
Thousand, Six Hundred & Ninety Nine and 40/100 Dollars ($91,699.40) per month (“Base
Rent”), payable on the first (1st) day of each month commencing 1 February
2009 (also see Paragraph 4). The Base Rent shall be subject to adjustment on an annual
basis on 1 December 2009 and on the same day of every year thereafter (the “Adjustment
Date”). The adjustment of the Base Rent shall be calculated as follows:

For the Adjustment Date on 1 December 2009 and 2010:

(1) The rent in effect as of the Adjustment Date in each year shall be increased by the
greater of (A) zero percent (0.0%); or (B) the percentage increase, if any, in the
Consumer Price Index (All Items for All Urban Consumers 1982-84 = 100 Base), of the
United States Department of Labor, Bureau of Labor Statistics for the Los
Angeles-Anaheim-Riverside,

 

 

California area for the twelve-month period ending on the immediately proceeding
September 30th (the “Index). The calculation pursuant to subparagraph (B)
shall be made according to the following formula:

	 	X 	=	A x B/C
	 
	 	X 	=	Adjusted Base Rent
	 
	 	A	=	Base Monthly Rent in effect as of the Adjustment Date
	 
	 	B 	=	The monthly index in effect for the twelve-month period ending on
the immediately
preceding September 30th (the “Adjustment Index”)
	 
	 	C 	=	The monthly index in effect for the twelve-month period ending on September
30th one
year prior to the Adjustment Index (the “Base Index”)

The monthly Base Rent as so increased shall be payable for each month commencing with
the Adjustment Date and continuing until the next Adjustment Date. In no event,
however, shall the CPI Adjusted Base Rent be less than the rent payable for the month
immediately preceding the Adjustment Date.

(2) If the Index is discontinued or revised during the term of this lease, such other
government Index or computation with which it is replaced shall be used in order to
obtain substantially the same result as would be obtained if the Index had not been
discontinued or revised.

(3) In not event shall the Adjusted Base Rent increase by greater than two percent
(2.0%) per annum.

For the Adjustment Date on 1 December 2011 and each year thereafter:

(1) The rent in effect as of the Adjustment Date in each year shall be increased by the
greater of (A) one percent (1.0%); or (B) the percentage increase, if any, in the
Consumer Price Index (All Items for All Urban Consumers 1982-84 = 100 Base), of the
United States Department of Labor, Bureau of Labor Statistics for the Los
Angeles-Anaheim-Riverside,
California area for the twelve-month period ending on the
immediately preceding
September 30th (the “Index”). The calculation pursuant to subparagraph (B)
shall be made according to the following formula:

	 	X 	=	Ax B/C
	 
	 	X 	=	Adjusted Base Rent
	 
	 	A	=	Base Monthly Rent in effect as of the Adjustment Date
	 
	 	B 	=	The monthly index in effect for the twelve-month period ending on
the immediately
preceding September 30th (the “Adjustment Index”)
	 
	 	C 	=	The monthly index in effect for the twelve-month period ending on
September 30th one year prior to the Adjustment Index (the “Base
Index”)

The monthly Base Rent as so increased shall be payable for each month commencing with
the Adjustment Date and continuing until the next Adjustment Date. In no event,
however, shall the CPI Adjusted Base Rent be less than the rent payable for the month
immediately preceding the Adjustment Date.

(2) If the Index is discontinued or revised during the term of this lease, such other
government Index or computation with which it is replaced shall be used in order to
obtain substantially the same result as would be obtained if the Index had not been
discontinued or revised.

(3) In no even shall the Adjusted Base Rent increase by greater than four percent
(4.0%) per annum.

 

 

     2. Effective Date. The “Effective Date” of this Amendment shall be 1 February
2009.

     3. Miscellaneous.

	 	3.1	 	This Amendment shall be construed in accordance with, and all disputes
hereunder shall be governed by, the internal laws of the State of California, venue in
the County of Santa Barbara.
	 
	 	3.2	 	In the event of any controversy or dispute arising out of this Amendment, the
prevailing party or parties shall be entitled to recover from the nonprevailing part
or parties, reasonable expenses, including, without limitation, attorneys’ fees and
costs actually incurred.
	 
	 	3.3	 	Should any provision of this Amendment be declared or determined by any court
to be illegal or invalid, the validity of the remaining parts, terms, or provisions
shall not be affected thereby and such illegal or invalid part, term or provisions
shall be deemed not to be a part of this Amendment.
	 
	 	3.4	 	This Amendment sets forth the entire agreement between the parties hereto,
and fully supersedes any and all prior agreements or understandings between the
parties hereto pertaining to the subject matter hereof.
	 
	 	3.5	 	Each part to this Agreement hereby represents and warrants that it has the
legal power, right and authority to enter into this Agreement and to consummate this
transaction and that it has not assigned any of its rights under the Sublease to any
third party.
	 
	 	3.6	 	This Amendment may be executed in several counterparts and any and all such
executed counterparts shall constitute one agreement binding upon the parties hereto.
	 
	 	3.7	 	This Amendment shall be binding on and shall inure to the benefit of the
parties hereto and their respective successors and assigns.

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

	 	 	 	 	 	 	 
	“Lessor”	 	“Lessee”
	 
	 	 	 	 	 	 
	1200 ENTERPRISES LLC	 	SUPERCONDUCTOR TECHNOLOGIES, INC.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Carol Vernon
	 	By:
	 	/s/ Jeffrey A Quiram
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name: Carol Vernon	 	Print Name: Jeffrey A Quiram
	Date: February 12, 2009	 	Date: February 10, 2009

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