Document:

Exhibit 10.1

 

EXECUTION VERSION

 

DATED July 11, 2022

 

NANO DIMENSION LTD.

 

AND

 

THE SELLING SHAREHOLDERS’ REPRESENTATIVE (ON
BEHALF OF THE SELLING SHAREHOLDERS)

 

AND

NICHOLAS CAMPBELL GEDDES

 

DEED OF VARIATION OF SHARE PURCHASE AGREEMENT

 

Taylor Vinters

Merlin Place

Milton Road

CAMBRIDGE

CB4 0DP

 

Tel: 01223 423444

Fax: 01223 423944

 

Email: sian.scanlon@taylorvinters.com

 

Our Ref: SES/452275.2

 

30312018v8

 

      

     

    

 

DEED OF VARIATION

 

INDEX

 

	CLAUSE	 	PAGE
	PARTIES	 	1
	BACKGROUND	 	1
	AGREED TERMS	 	2
	1 	DEFINITIONS AND INTERPRETATION	 	2
	2 	VARIATION TO DEFERRED CONSIDERATION	 	2
	3 	VARIATION OF EARN-OUT CONSIDERATION	 	2
	4 	PROVISIONS RELATING TO NICHOLAS GEDDES	 	3
	5 	CONTINUATION	 	4
	6 	GENERAL	 	4
	7 	GOVERNING LAW AND JURISDICTION	 	4

 

    i

     

    

 

THIS DEED is dated                                   2022

 

PARTIES

 

		1	NANO DIMENSION LTD., a company incorporated and registered
in Israel with company number 520029109 whose registered office is at 2 Ilan Ramon Street, 7403635, Ness Ziona, Israel (the “Purchaser”);

 

		2	TAYLOR VINTERS LLP, a limited liability partnership registered
in England and Wales with registered number OC343503 whose registered office is at Merlin Place, Milton Road, Cambridge CB4 0DP, acting
as the Selling Shareholders’ Representative (the “Selling Shareholders’ Representative”); and

 

		3	NICHOLAS CAMPBELL GEDDES of Street Farmhouse, The Street,
Lidgate, Suffolk, CB8 9PW (“NG”).

 

BACKGROUND

 

		1	The Purchaser and various individuals (the “Selling Shareholders”)
are party to a share purchase agreement dated 4 January 2022 pursuant to which the Selling Shareholders sold the entire issued share
capital of Global Inkjet Systems Ltd to the Purchaser (the “SPA”).

 

		2	The SPA contains various provisions governing the payment of further
sums to the Selling Shareholders. The Purchaser has proposed to bring forward the payment of such sums in consideration for a discount
and change in payment terms of the full amounts which might otherwise be payable (the “Proposed Variation”) as it wishes
to change the role carried out by NG.

 

		3	Selling Shareholders who together held more than half of the shares
sold pursuant to the SPA have agreed to the Proposed Variation, and accordingly the Selling Shareholders’ Representative (acting pursuant
to sections 9.10(a), 9.12(a) and 9.12(e) of the SPA) has entered into this Deed along with the Purchaser to give effect to the Proposed
Variation.

 

		4	NG is a party to this Deed for the purposes of agreeing to the
arrangements for the payment of his Relevant Proportion of the Earn-Out Consideration on the basis set out in clause 4.1 below.

 

    1

     

    

 

AGREED
TERMS

 

		1	DEFINITIONS AND INTERPRETATION

 

Unless otherwise provided for expressly
in this Deed, terms used in this Deed shall bear the meanings ascribed to them in the SPA.

 

		2	Variation TO Deferred
Consideration

 

		2.1	With effect from the date of this Deed the provisions of the SPA
are hereby amended as follows:

 

		2.1.1	the figure of GBP 1,000,000 in the definition of Deferred Consideration
shall be deleted and replaced with the figure of GBP 750,000;

 

		2.1.2	section 2.02(h) shall be deleted and replaced with the following:

 

“Deferred Consideration
Purchaser shall pay the Selling Shareholders the amount constituting the Deferred Consideration on 31 March 2023, based on their Relevant
Proportion. Notwithstanding anything to the contrary herein, no Deferred Consideration shall be paid to a Selling Shareholder who is
a member of the Management Team, unless such Selling Shareholder was engaged by the Company until (and including) March 31, 2023, unless
the engagement of such Selling Shareholder was terminated by Company, other than for Cause, or has otherwise resigned for Good Reason.”

 

		3	Variation of Earn-Out
Consideration

 

		3.1	With effect from the date of this Deed the provisions of the SPA
are hereby amended as follows:

 

		3.1.1	the definition of Earn-Out Consideration shall be amended to “shall
mean GBP 5,500,000”;

 

		3.1.2	in section 2.02(b) the figure of GBP 7,000,000 shall be deleted
and replaced with the figure of GBP 5,500,000;

 

		3.1.3	section 2.02(b)(2) shall be deleted and replaced with the following:

 

“Subject to Closing, the Purchaser
shall pay GBP 4,500,000 of the Earn-Out Consideration to the Selling Shareholders on 31 March 2023.”;

 

		3.1.4	in section 2.02(d) the words “the last day of the respective
Earn-Out Period to which such portion of the Earn-Out Consideration pertains” shall be deleted and replaced with the words “(i)
in the case of the EBITDA Earn-Out Period, 31 March 2022 and (ii) in the case of the remaining Earn-Out Consideration, 31 March 2023”;

 

    2

     

    

 

		3.1.5	sections 2.02(b)(3) and 2.02(g) shall be deleted and replaced
with the words “Reserved”;

 

		3.1.6	in sections 2.02(e) and 2.02(f) references to Earn-Out Consideration
shall be read as references to the EBITDA Based Earn-Out Consideration;

 

		3.2	With effect from the date of this Deed:

 

		3.2.1	any references in section 2.04 of the SPA to “Earn-Out Consideration”
shall be read as references to the EBITDA Based Earn-Out Consideration; and

 

		3.2.2	the Selling Shareholders (acting by the Selling Shareholders’
Representative) hereby release the Purchaser from the obligations and covenants set out in section 2.04 of the SPA in relation to the
Earn-Out Consideration only (but not, for the avoidance of doubt, in respect of the EBITDA Based Earn-Out Consideration).

 

		3.3	With effect from the date of this Deed the definition of Good
Reason shall be amended by the deletion of the text from and including the phrase “(vi)”.

 

		4	Provisions relating
to NICHOLAS GEDDES

 

		4.1	With effect from the date of this Deed a new section 2.02(j) shall
be inserted as follows:

 

“(j) notwithstanding the provisions
of Section 2.02(d) and 2.02(h), the Relevant Proportion of the Earn-Out Consideration to be paid to Nicholas Geddes pursuant to section
2.02(b)(2) (as amended by this Deed) shall be paid (i) GBP 521,770 on 30 June 2023, (ii) GBP 347,847 on 30 June 2024 and (iii) GBP 434,808
on 30 June 2025, provided in relation to each such payment that he remains engaged by the Company (or any member of the Purchaser’s Group)
on the relevant payment date, unless he was terminated by the Company (or other member of the Purchaser’s Group, as the case may be),
other than for Cause, or has otherwise resigned for Good Reason.”

 

    3

     

    

 

		4.2	NG agrees to the terms of clause 4.1 above and consequently the
payment to him of his Relevant Proportion of the Earn-Out Consideration being paid on a different basis to the other Selling Shareholders.

 

		5	CONTINUATION

 

		5.1	The SPA shall remain in full force and effect subject only to
the changes effected by this Deed.

 

		5.2	In case of any conflict between the terms of the SPA and the terms
of this Deed, the latter shall govern and prevail. All other terms of the SPA shall apply, mutatis-mutandis.

 

		6	GENERAL

 

		6.1	This Deed may be executed in any number of counterparts, each
of which will be deemed to be an original and all of which together will constitute one and the same instrument. A signature to this
Deed delivered by facsimile or in PDF, as a scan copy or in a similar format by electronic mail will be sufficient for all purposes between
the parties.

 

		6.2	All or any provision of this Deed may be deleted, varied, supplemented,
terminated or otherwise changed in any way on the same basis as provided in the SPA.

 

		7	GOVERNING LAW AND JURISDICTION

 

		7.1	This Deed (including any dispute, claim or controversy arising
out of, in connection with or relating to this Deed) shall be governed by, and construed in accordance with the laws of England and Wales,
without giving effect to conflicts of laws principles that would result in the application of the law of any other state.

 

		7.2	This Deed (including any dispute, claim or controversy arising
out of, in connection with or relating to this Agreement) shall be subject to the exclusive jurisdiction of the English Courts and the
parties irrevocably agree that any proceedings in respect of such claim or matter may be brought only in such court.

 

THIS DEED has been executed and delivered
as a deed on the date stated at the beginning of it.

 

    4

     

    

 

	EXECUTED AS A DEED by 

NANO DINENSION LTD.

 acting by a director in the presence of:	)

                                                                            )

                                                                            )
	/s/ Yoav Stern
	 	 	Name:	 Yoav Stern
	 	 	 	 
	Witness signature:	 	/s/ Tamir Chagal
	Witness name:	 	Tamir Chagal
	Witness address:	 	28 HaArba’a St. HaArba’a Towers, Northern Tower
	 	 	35th Floor, Tel-Aviv, Israel
	Witness occupation:	 	Advocate 

 

	EXECUTED AS A DEED by

 TAYLOR VINTERS LLP

 acting by a member in the presence of:	)

                                                                            )
)	/s/ Sian Scanlon
	 	 	Name:	 Sian Scanlon
	 	 	 	 
	Witness signature:	 	/s/ Hanna Beaumont 
	Witness name:	 	Hanna Beaumont
	Witness address:	 	16a Hilton Road
	 	 	Fenstanton, PE28 9L
	Witness occupation:	 	Insurance Broker

 

	EXECUTED AS A DEED

    NICHOLAS CAMPBELL GEDDES 

    in the presence of:	)

                                                                            )
)	/s/
    Nicholas Geddes
	 	 	Name:	Nicholas Geddes
	 	 	 	 
	Witness signature:	 	/s/
    James Barker
	Witness name:	 	James Barker
	Witness address:	 	23 Mountbatten Drive 
	 	 	Biggleswade 
	 	 	SG180JJ
	Witness occupation:	 	HR Manager

 

 

5Exhibit
4.1

 

DESCRIPTION
OF THE REGISTRANT’S SECURITIES REGISTERED PURSUANT

TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934

 

The
Singing Machine Company, Inc. has one class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”): its common stock, par value $0.01 per share (“common stock”). The following description
of our capital stock is a summary and does not purport to be complete. The following description is subject to and qualified in its entirety
by reference to our certificate of incorporation and our bylaws, each as amended, and each of which is incorporated by reference as an
exhibit to our Annual Report on Form 10-K of which this Exhibit is a part.

 

We
encourage you to read our certificate of incorporation, bylaws and the applicable provisions of the Delaware General Corporation Law
(the “DGCL”) for more information. References herein to “we,” “our,” “us,” and “the
Company” refer solely to The Singing Machine Company, Inc.

 

General

 

Our
authorized capital stock consists of:

 

	 	●	100,100,000
    shares of common stock, par value of $0.01 per share, of which 100,000 shares are designated as Class A common stock; and

 

	 	●	1,000,000
    shares are of preferred stock, par value of $1.00 per share.

 

Our
board of directors is authorized, without stockholder approval except as required by the listing standards of the Nasdaq Capital Market,
to issue additional shares of our capital stock.

 

Voting
Rights

 

Each
holder of common stock is entitled to one vote for each share on all matters submitted to a vote of the stockholders, including the election
of directors. Our certificate of incorporation and bylaws do not provide for cumulative voting rights. Because of this, the holders of
a plurality of the shares of common stock entitled to vote in any election of directors can elect all of the directors standing for election,
if they should so choose. With respect to matters other than the election of directors, at any meeting of the stockholders at which a
quorum is present or represented, the affirmative vote of a majority of the voting power of the shares present in person or represented
by proxy at such meeting and entitled to vote on the subject matter shall be the act of the stockholders, except as otherwise required
by law. The holders of a majority of the stock issued and outstanding and entitled to vote, present in person or represented by proxy,
shall constitute a quorum for the transaction of business at all meetings of the stockholders.

 

Except
as otherwise required by law, the Class A common stock shall have no voting right on any matter. The rights, preferences and privileges
of the holders of common stock are subject to, and may be adversely affected by, the rights of the holders of shares of any series of
our preferred stock that we may designate and issue in the future. All of our outstanding shares of common stock are fully paid and non-
assessable.

 

Dividends

 

Subject
to preferences that may be applicable to any then-outstanding preferred stock, holders of our common stock are entitled to receive dividends,
if any, as may be declared from time to time by our board of directors out of legally available funds.

 

Liquidation

 

In
the event of our liquidation, dissolution or winding up, holders of our common stock will be entitled to share ratably in the net assets
legally available for distribution to stockholders after the payment of all of our debts and other liabilities and the satisfaction of
any liquidation preference granted to the holders of any then-outstanding shares of preferred stock.

 

    	 

    	 

    

 

Rights
and Preferences

 

Holders
of our common stock have no preemptive, conversion, subscription or other rights, and there are no redemption or sinking fund provisions
applicable to our common stock. The rights, preferences and privileges of the holders of our common stock are subject to and may be adversely
affected by the rights of the holders of shares of any series of our preferred stock that we may designate in the future.

 

Preferred
Stock

 

Our
certificate of incorporation contains provisions that permit our board of directors to issue, without any further vote or action by the
stockholders, shares of preferred stock in one or more series and, with respect to each such series, to fix the number of shares constituting
the series and the designation of the series, the voting rights (if any) of the shares of the series, and the powers, preferences or
relative, participation, optional and other special rights, if any, and any qualifications, limitations or restrictions, of the shares
of such series.

 

Anti-Takeover
Provisions

 

Certain
provisions of Delaware General Corporation Law (DGCL), and our certificate of incorporation and bylaws, each as amended, may have the
effect of delaying, deferring, or discouraging another person from acquiring control of us. They are also designed, in part, to encourage
persons seeking to acquire control of us to negotiate first with our board of directors. We believe that the benefits of increased protection
of our potential ability to negotiate with an unfriendly or unsolicited acquirer outweigh the disadvantages of discouraging a proposal
to acquire us because negotiation of these proposals could result in an improvement of their terms.

 

Delaware
Takeover Statute

 

We
are governed by the provisions of Section 203 of the DGCL. In general, Section 203 prohibits a public Delaware corporation from engaging
in a “business combination” with an “interested stockholder” for a period of three years after the date of the
transaction in which the person became an interested stockholder, unless:

 

●the
transaction was approved by the board of directors prior to the time that the stockholder became an interested stockholder;

 

●upon
consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned
at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding shares owned by directors
who are also officers of the corporation and shares owned by employee stock plans in which employee participants do not have the right
to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

 

●at
or subsequent to the time the stockholder became an interested stockholder, the business combination was approved by the board of directors
and authorized at an annual or special meeting of the stockholders, and not by written consent, by the affirmative vote of at least two-thirds
of the outstanding voting stock which is not owned by the interested stockholder.

 

In
general, Section 203 defines a “business combination” to include mergers, asset sales and other transactions resulting in
financial benefit to a stockholder and an “interested stockholder” as a person who, together with affiliates and associates,
owns, or, within three years, did own, 15% or more of the corporation’s outstanding voting stock. These provisions may have the
effect of delaying, deferring, or preventing changes in control of our company.

 

Transfer
Agent and Registrar

 

The
transfer agent for our common stock is Continental Stock Transfer & Trust Company. The transfer agent’s address is 1 State
Street, 30th Floor, New York, NY 10004-1561.

 

Listing

 

Our
common stock is currently listed on the NASDAQ Capital Market under the symbol “MICS.”

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