Document:

Exhibit
10.2

 

		 	

 

REVOLVING
LINE NOTE

New
York

 

	June
    27, 2022	 	$25,000,000.00

 

	BORROWER:
    	RAND
    CAPITAL CORPORATION, a corporation organized under the laws of the State of New York having its chief executive office at 14 Lafayette
    Square, Suite 1405, Buffalo, NY 14203.

 

	BANK:	M&T
    BANK, a New York banking corporation with its banking offices at One M&T Plaza, Buffalo, New York 14203, Attention: Office of
    the General Counsel

 

Promise
to Pay. For value received, and intending to be legally bound, Borrower promises to pay to the order of the Bank the principal sum
of Twenty-Five Million Dollars ($25,000,000.00) (the “Maximum Principal Amount”) or the outstanding principal amount of this
Note (the “Outstanding Principal Amount”), if less; plus interest as agreed below and all actual fees and costs (including
without limitation reasonable attorneys’ fees and disbursements of outside counsel) the Bank incurs in order to administer, service
or modify the credit facility evidenced by this Note, to collect any amount due under this Note, to negotiate or document a workout or
restructuring, or to preserve its rights or realize upon any guaranty or other security for the payment of this Note (“Expenses”).
Terms capitalized but not defined herein shall have the meanings given to such terms in the Credit Agreement between Borrower and Bank
of even date herewith (the “Credit Agreement”).

 

Authorized
Representatives. This Note is issued by Borrower to the Bank in connection with a certain line of credit made available by the Bank
to Borrower (the “Credit”). The Bank may make any loan or advance pursuant to the Credit (collectively, “Loan(s)”)
in reliance upon any oral, telephonic, written, teletransmitted or other request (the “Request(s)”) that the Bank in good
faith believes to be valid and to have been made by Borrower or on behalf of Borrower by any executive officer of Borrower who is authorized
or designated as a signer of loan documents under the provisions of Borrower’s most recent resolutions or similar documents on
file with the Bank (each an “Authorized Person”). Notwithstanding that individual names may have been provided to the Bank,
the Bank shall be permitted at any time to rely solely on an individual’s title to ascertain whether that individual is an Authorized
Person. The Bank may act on the Request of any Authorized Person until the Bank shall have received from Borrower, and had a reasonable
time to act on, written notice revoking the authority of such Authorized Person. Borrower acknowledges that the transmission between
Borrower and Bank of any Request or other instructions with respect to the Credit involves the possibility of errors, omissions, misinterpretations,
fraud and mistakes, and agrees to adopt such internal measures and operational procedures as may be necessary to prevent such occurrences.
By reason thereof, Borrower hereby assumes all risk of loss and responsibility for, and releases and discharges the Bank from any and
all responsibility or liability for, and agrees to indemnify, reimburse on demand and hold Bank harmless from, any and all claims, actions,
damages, losses, liability and expenses by reason of, arising out of, or in any way connected with or related to: (i) Bank’s accepting,
relying on and acting upon any Request or other instructions with respect to the Credit; or (ii) any such error, omission, misinterpretation,
fraud or mistake, provided such error, omission, misinterpretation, fraud or mistake is not directly caused by the Bank’s gross
negligence or willful misconduct. The Bank shall incur no liability to Borrower or to any other person as a direct or indirect result
of making any Loan pursuant to this paragraph.

 

Revolving
Credit. This Note evidences a revolving Credit. Subject to all applicable provisions in this Note and in any and all other agreements
between the Borrower and the Bank related hereto from the date hereof until the Termination Date (as defined below), the Borrower may
borrow, pay, prepay and reborrow hereunder at any time. Notwithstanding that, from time to time, there may be no amounts outstanding
respecting this Note, this Note shall continue in full force and effect until all obligations and liabilities evidenced by this Note
are paid in full and the Credit evidenced by this Note has been terminated by the Bank. See attached Addendum to Line of Credit Note,
the terms of which are incorporated herein by reference, for definitions and additional provisions.

 

Interest.
The Outstanding Principal Amount of this Note, as may fluctuate from time to time based on the disbursement of Loans and any repayments,
shall earn interest calculated on the basis of a 360-day year for the actual number of days of each year (365 or 366), from and including
the dates the proceeds of any Loans are disbursed to, but not including, the date all amounts hereunder are paid in full, at a rate per
year which shall be:

 

	 	☒	variable
    at 3.50 percentage points above the greater of (a) the applicable Variable Loan Rate (as defined in the attached Variable Rate Rider),
    or (b) 0.25% (the “Index Floor”). See attached Variable Rate Rider, the terms of which are incorporated herein by reference,
    for definitions and additional provisions.

 

If
no rate is specified above, interest shall accrue at the Maximum Legal Rate (defined below).

 

    	1

    	 

    

 

Maximum
Legal Rate. It is the intent of the Bank and of Borrower that in no event shall interest be payable at a rate in excess of the maximum
rate permitted by applicable law (the “Maximum Legal Rate”). Solely to the extent necessary to prevent interest under this
Note from exceeding the Maximum Legal Rate, Borrower agrees that any amount that would be treated as excessive under a final judicial
interpretation of applicable law shall be deemed to have been a mistake and automatically canceled, and, if received by the Bank, shall
be refunded to Borrower, without interest.

 

Maturity
Date. The Outstanding Principal Amount of this Note and all accrued and unpaid interest is due and payable on June 27, 2027 or such
earlier date as such amounts may become due or be demanded in accordance with this Note or the Credit Agreement (such date, the “Termination
Date”).

 

Payments.
Payments shall be made in immediately available United States funds at any banking office of the Bank.

 

Preauthorized
Transfers from Deposit Account. If a deposit account number is provided in the following blank, Borrower hereby authorizes the Bank
to debit Borrower’s deposit account ____________ with the Bank automatically for any amount which becomes due under this Note.

 

Interest
Accrual; Application of Payments. Interest will continue to accrue on the Outstanding Principal Amount until the Outstanding Principal
Amount is paid in full. In connection with any daily adjusting interest rate, payment invoices may reflect estimated interest accruals
for a portion of each billing period (to facilitate timely distribution of invoices in advance of each payment date), followed by appropriate
interest accrual adjustments reflected in the invoice for the succeeding billing period. All installment payments (excluding voluntary
prepayments of principal) will be applied as of the date each payment is received and processed. Payments may be applied in any order
in the sole discretion of the Bank, but, prior to demand for payment in full, may be applied chronologically (i.e., oldest invoice first)
to unpaid amounts due and owing, in the following order: first to accrued interest, then to principal, then to late charges and other
fees, and then to all other Expenses.

 

Late
Charge. If Borrower fails to pay, within three (3) business days of its due date, any amount due and owing pursuant to this Note
or any other agreement executed and delivered to the Bank in connection with this Note, Borrower shall immediately pay to the Bank a
late charge equal to the greatest of (a) $50.00, (b) five percent (5%) of the delinquent amount, or (c) the Bank’s then current
late charge as announced by the Bank from time to time.

 

Default
Rate. Upon the occurrence and during the continuance of an Event of Default, the interest rate on the Outstanding Principal Amount
shall immediately and automatically increase to five (5) percentage points above the otherwise applicable rate per year (“Default
Rate”), and any judgment entered hereon or otherwise in connection with any suit to collect amounts due hereunder shall bear interest
at such Default Rate.

 

Increased
Costs. If the Bank shall determine that, due to either (a) the introduction of any change in (or in the interpretation of) any requirement
of law or (b) compliance with any guideline or request from any central bank or other governmental or regulatory authority (whether or
not having the force of law), there shall be any increase in the cost to the Bank of agreeing to make or making, funding or maintaining
any loans hereunder, then Borrower shall be liable for, and shall from time to time, upon demand therefor by the Bank, pay to the Bank
such additional amounts as are sufficient to compensate the Bank for such increased costs.

 

Right
of Setoff. Upon the occurrence and continuance of an Event of Default, the Bank shall have the right to set off against the amounts
owing under this Note any property held in a deposit or other account with the Bank or any of its affiliates or otherwise owing by the
Bank or any of its affiliates in any capacity to Borrower or any guarantor or endorser of this Note. Such set-off shall be deemed to
have been exercised immediately at the time the Bank or such affiliate elects to do so.

 

Bank
Records Conclusive. The Bank shall set forth on a schedule attached to this Note or maintained on the Bank’s loan booking systems,
the date and original principal amount of each Loan and the date and amount of each payment to be applied to the Outstanding Principal
Amount of this Note. The Outstanding Principal Amount set forth on any such schedule shall be presumptive evidence of the Outstanding
Principal Amount of this Note and of all Loans. No failure by the Bank to make, and no error by the Bank in making, any annotation on
any such schedule shall affect the Borrower’s obligation to pay the principal and interest of each Loan or any other obligation
of Borrower to the Bank pursuant to this Note.

 

Purpose.
Borrower certifies (a) that no Loan will be used to purchase Margin Stock (as defined in Regulation U of the Board of Governors of
the Federal Reserve System) except for repurchases by Borrower of the Borrower’s common stock pursuant to Borrower’s publicly
announced share repurchase program provided, after making such purchase, the Credit will not violate Regulation U of the Board of Governors
of the Federal Reserve System; and (b) that all Loans shall be used for a business purpose, and not for any personal, family or household
purpose.

 

    	2

    	 

    

 

Authorization.
Borrower, if a corporation, partnership, limited liability company, trust or other entity, represents that it is duly organized and
in good standing or duly constituted in the state of its organization and is duly authorized to do business in all jurisdictions material
to the conduct of its business; that the execution, delivery and performance of this Note have been duly authorized by all necessary
regulatory and corporate or partnership action or by its governing instrument; that this Note has been duly executed by an authorized
officer, member, partner or trustee and constitutes a binding obligation enforceable against Borrower and not in violation of any law,
court order or agreement by which Borrower is bound; and that Borrower’s performance is not threatened by any pending or threatened
litigation.

 

USA
PATRIOT Act Notice. Bank hereby notifies the Borrower that pursuant to the requirements of the USA PATRIOT Act (“Patriot Act”),
it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address
of the Borrower and other information that will allow Bank to identify the Borrower in accordance with the Patriot Act. The Borrower
agrees to, promptly following a request by Bank, provide all such other documentation and information that Bank requests in order to
comply with its ongoing obligations under applicable “know your customer” and anti-money laundering rules and regulations,
including the Patriot Act.

 

Miscellaneous.
This Note, together with the Credit Agreement and any related loan documents, contains the entire agreement between the Bank and
Borrower with respect to each Loan, and supersedes every course of dealing, other conduct, oral agreement and representation previously
made by the Bank. All rights and remedies of the Bank under applicable law and this Note are cumulative and not exclusive. No single,
partial or delayed exercise by the Bank of any right or remedy shall preclude the subsequent exercise by the Bank at any time of any
right or remedy of the Bank without notice. No waiver or amendment of any provision of this Note shall be effective unless made specifically
in writing by the Bank. No course of dealing or other conduct, no oral agreement or representation made by the Bank, and no usage of
trade, shall operate as a waiver of any right or remedy of the Bank. No waiver of any right or remedy of the Bank shall be effective
unless made specifically in writing by the Bank. Borrower agrees that in any legal proceeding, a copy of this Note kept in the Bank’s
course of business may be admitted into evidence as an original. This Note is a binding obligation enforceable against Borrower and its
successors and assigns and shall inure to the benefit of the Bank and its successors and assigns. If a court deems any provision of this
Note invalid, the remainder of the Note shall remain in effect. Section headings are for convenience only. Singular number includes plural
and neuter gender includes masculine and feminine as appropriate.

 

Notices.
Any demand or notice hereunder or under any applicable law pertaining hereto shall be in writing and duly given if delivered to Borrower
(at its address on the Bank’s records) or to the Bank (at the address on page one and separately to the Bank officer responsible
for Borrower’s relationship with the Bank). Such notice or demand shall be deemed sufficiently given for all purposes when delivered
(i) by personal delivery and shall be deemed effective when delivered, or (ii) by mail or courier and shall be deemed effective three
(3) business days after deposit in an official depository maintained by the United States Post Office for the collection of mail or one
(1) business day after delivery to a nationally recognized overnight courier service (e.g., Federal Express). Notice by e-mail is not
valid notice under this or any other agreement between Borrower and the Bank.

 

Governing
Law; Jurisdiction. This Note has been delivered to and accepted by the Bank and will be deemed to be made in the State of New York.
Except as otherwise provided under federal law, this Note will be interpreted in accordance with the laws of the State of New York excluding
its conflict of laws rules. BORROWER HEREBY IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT IN THE
STATE OF NEW YORK IN A COUNTY OR JUDICIAL DISTRICT WHERE THE BANK MAINTAINS A BRANCH AND CONSENTS THAT THE BANK MAY EFFECT ANY SERVICE
OF PROCESS IN THE MANNER AND AT BORROWER’S ADDRESS SET FORTH ABOVE FOR PROVIDING NOTICE OR DEMAND; PROVIDED THAT NOTHING CONTAINED
IN THIS NOTE WILL PREVENT THE BANK FROM BRINGING ANY ACTION, ENFORCING ANY AWARD OR JUDGMENT OR EXERCISING ANY RIGHTS AGAINST BORROWER
INDIVIDUALLY, AGAINST ANY SECURITY OR AGAINST ANY PROPERTY OF BORROWER WITHIN ANY OTHER COUNTY, STATE OR OTHER FOREIGN OR DOMESTIC JURISDICTION.
Borrower acknowledges and agrees that the venue provided above is the most convenient forum for both the Bank and Borrower. Borrower
waives any objection to venue and any objection based on a more convenient forum in any action instituted under this Note.

 

Waiver
of Jury Trial. Borrower and the Bank hereby knowingly, voluntarily, and intentionally waive any
right to trial by jury Borrower and the Bank may have in any action or proceeding, in law or in equity, in connection with this note
or the transactions related hereto. Borrower represents and warrants that no representative or agent of the Bank has represented, expressly
or otherwise, that the Bank will not, in the event of litigation, seek to enforce this jury trial waiver. Borrower Acknowledges that
the Bank has been induced to enter into this note by, among other things, the provisions of this Section.

 

    	3

    	 

    

 

Acknowledgment.
Borrower acknowledges that it has read and understands all the provisions of this Note, including the Governing Law, Jurisdiction
and Waiver of Jury Trial, and has been advised by counsel as necessary or appropriate.

 

 

	 	RAND CAPITAL CORPORATION
	 	 	 
	 	By:	/s/ Daniel P. Penberthy
	 	Name: 	Daniel P. Penberthy
	 	Title: 	President and Chief Executive Officer

 

(Signature
Page to Revolving Line Note)Exhibit
10.3

 

		 	

 

ADDENDUM
TO LINE OF CREDIT NOTE

Formula-Based
Credit

 

Borrower:
RAND CAPITAL CORPORATION

 

Initial
Face Amount* of Note: $25,000,000.00

 

*(This
information is for cross-reference purposes only. Any calculation of availability under the Note shall be determined based on the Maximum
Principal Amount, subject to other terms and conditions as described in the Note and this Addendum, as any of the same may be amended
from time to time.)

 

Date
of Note: June 27, 2022.

 

This
Addendum, as may be amended from time to time, is a part of and shall be incorporated into the certain promissory note referenced above,
executed and delivered by Borrower to M&T Bank (the “Bank”) on or about the date indicated above, and any replacements,
amendments, modifications and extensions thereof (collectively, the “Note”). Each capitalized term used herein shall have
the meaning specified in the Note or the Credit Agreement, except as otherwise defined herein.

 

This
Addendum shall set forth certain additional terms and conditions with respect to the Credit and the making of Loans under the Note. To
the extent that the terms of this Addendum shall differ from the terms of the Note, the terms of this Addendum shall control.

 

	1.	Loans.

 

From
time to time, Borrower may make a Request for a Loan so long as the sum of the Outstanding Principal Amount and the requested Loan amount
does not exceed the Borrowing Capacity (defined below), as computed by the Bank at the time of the Request.

 

The
Bank may, in its sole and absolute discretion, make a Loan to Borrower even though the Borrowing Capacity would be exceeded by the making
of such Loan, and any such Loan shall still be included in the computation of the Outstanding Principal Amount. Without limiting Borrower’s
obligation to pay the Outstanding Principal Amount, plus interest, costs, reasonable attorney’s fees and Expenses, as set forth
in the Note, whenever the Outstanding Principal Amount exceeds the Borrowing Capacity (such excess, an “Overadvance”), Borrower
shall, within 30 days of delivery of the Borrowing Base Certificate showing such Overadvance, pay to the Bank an amount equal to such
excess, provided however that, notwithstanding the foregoing, Borrower shall immediately be required to pay such Overadvance if any other
Event of Default has occurred and is continuing.

 

	2.	Borrowing
    Capacity.

 

“Borrowing
Capacity” shall be, at any point in time of computation, the lesser of (i) the Maximum Principal Amount, or (ii)
the aggregate sum of the amounts calculated according to the respective formulas described in categories (A), (B), (C) and (D) below
minus (E) ((the sum of (A), (B), (C) and (D)) minus (E) shall be referred to herein as “Borrowing Base Availability”):

 

	 	(A)	75%
    of the Publicly Traded Securities Borrowing Base (defined below) (excluding shares of ACV Auctions Inc.); plus
	 	 	 
	 	(B)	the
    least of (i) 75% of the Fair Market Value of the shares of ACV Auctions, Inc., (ii) $6,250,000 and (iii) 25% of Borrowing Base Availability
    at any date of determination; plus
	 	 	 
	 	(C)	50%
    of the Private Debt Borrowing Base (defined below); plus
	 	 	 
	 	(D)	the
    lesser of (i) 50% of the Unsecured Private Debt Borrowing Base and (ii) $1,250,000; minus
	 	 	 
	 	(E)
    	such
    reserves as the Bank may establish from time to time in its sole discretion.

 

    	 

     

    

 

“Publicly
Traded Securities Borrowing Base” means, at the time of determination, the aggregate sum of the Fair Market Value of the Eligible
Publicly Traded Securities (as defined below) (excluding the shares of ACV Auctions Inc.).

 

“Private
Debt Borrowing Base” means, at the time of determination, the aggregate sum of the Fair Market Value of Eligible Private Debt (as
defined below).

 

“Unsecured
Private Debt Borrowing Base” means, at the time of determination, the aggregate sum of the Fair Market Value of Eligible Unsecured
Private Debt (as defined below).

 

The
percentages applicable to the Publicly Traded Securities Borrowing Base, the Private Debt Borrowing Base and the Unsecured Private Debt
Borrowing Base and the calculation of the Publicly Traded Securities Borrowing Base, the Private Debt Borrowing Base and the Unsecured
Private Debt Borrowing Base, as they relate to the calculation of the Borrowing Capacity, are subject to the Bank’s continuing
review and right of modification and/or restriction at any time, for any reason, in the Bank’s sole discretion, without prior notice
to Borrower and without effect on Borrower’s obligations under the Note.

 

	3.	Reports.

 

The
Borrower shall deliver to the Bank, at the frequency required in accordance with the Credit Agreement, the financial reports required
thereunder.

 

	4.	Fair
    Market Value.

 

For
the purposes hereof, “Fair Market Value” shall be the fair market value of Eligible Publicly Traded Securities, Eligible
Private Debt and Eligible Unsecured Private Debt as set forth in the most recent 10-K or 10-Q filed by the Borrower with the Securities
and Exchange Commission.

 

	5.	Eligible
    Publicly Traded Securities.

 

“Eligible
Publicly Traded Securities” means any equity security registered or having unlisted trading privileges on a national securities
exchange or any over the counter security designated as qualified for trading in the National Market System under a designation plan
approved by the Securities and Exchange Commission (each such equity security, a “Publicly Traded Security”); provided that
if the Fair Market Value of the shares of an Eligible Publicly Traded Security exceed $5,000,000, such shares shall be deemed to have
a fair market value of $5,000,000 for purposes of determining the Eligible Publicly Traded Securities.

 

	6.	Eligible
    Private Debt/Eligible Unsecured Private Debt.

 

“Eligible
Private Debt” means any loan by the Borrower to a Person (not an individual) (“Private Debt”) which, at the time of
any evaluation thereof:

 

	 	(a)	is
    secured by all or substantially all of the non-realty assets of the applicable borrower(s) and the Borrower or the Borrower’s
    agent has a perfected lien over such assets although such lien may be subordinated to the lien of other Persons;
	 	 	 
	 	(b)	is
    evidenced by a note and loan documents which is valid and binding on the applicable borrower(s) and duly authorized, executed and
    delivered by the applicable borrower(s); 
	 	 	 
	 	(c)	is
    not contractually past due or otherwise in default; 

 

	 	(d)	the
    outstanding principal amount does not exceed $5,000,000; provided that, to the extent the outstanding principal amount exceeds $5,000,000,
    only such excess shall be ineligible for the purposes hereof; 
	 	 	 
	 	(e)	has
    not been pledged, sold or assigned to any other Person; or 
	 	 	 
	 	(f)	the
    Bank has not deemed to be ineligible, in accordance with the Bank’s criteria, applied in the Bank’s reasonable discretion.

 

“Eligible
Unsecured Private Debt” means any Private Debt that satisfies all of the criteria of Eligible Private Debt except clause (a).

 

	7.	Notice
    of Ineligibility.

 

Borrower
shall, promptly upon acquiring knowledge or reason to know of any event or condition that caused or will or might cause any Private Debt
to cease to be “Eligible Private Debt”, or that adversely affects or will or might adversely affect the value of such Publicly
Traded Security or Private Debt as security for the repayment of the Loans, or any of the Bank’s rights and remedies relating to
such Publicly Traded Security or Private Debt, deliver notice of such event or condition to the Bank.

 

(Signature
Page Follows)

 

    	2

     

    

 

IN
WITNESS WHEREOF, Borrower has executed and delivered this Addendum as an instrument under seal (in jurisdictions where applicable).

 

	 	RAND
    CAPITAL CORPORATION
	 	 	 
	 	By:	/s/
    Daniel P. Penberthy
	 	Name:
    	Daniel
    P. Penberthy
	 	Title:
    	President
    and Chief Executive Officer

 

(Signature
Page to Addendum to Line of Credit Note)

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