Document:

vapo-ex49_535.htm

 

Exhibit 4.9

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE

SECURITIES EXCHANGE ACT OF 1934

Vapotherm, Inc. (the “Company”) has one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): common stock, $0.001 par value per share (“Common Stock”).

Description of Capital Stock

The following description of the Company’s capital stock is a summary and does not purport to be complete. It is subject to and qualified in its entirety by reference to the Company’s Tenth Amended and Restated Certificate of Incorporation, as amended (the “Certificate of Incorporation”), and Amended and Restated Bylaws (the “Bylaws”), each of which is incorporated by reference as an exhibit to the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021. The Company encourages you to read the Certificate of Incorporation, the Bylaws and the applicable provisions of the Delaware General Corporation Law (“DGCL”) for additional information.

Authorized Capital Shares

The Certificate of Incorporation authorizes the issuance of 200,000,000 shares of capital stock, consisting of 175,000,000 shares of Common Stock and 25,000,000 shares of preferred stock, $0.001 par value per share (“Preferred Stock”). 

Voting Rights

Holders of the Company’s Common Stock are entitled to one vote for each share held on all matters submitted to a vote of stockholders and do not have cumulative voting rights. All matters other than the election of directors shall be determined by a majority of the votes cast on the matter affirmatively or negatively. A nominee for director shall be elected to the Company’s board of directors (the “Board”) if the votes properly cast for such nominee’s election exceed the votes properly cast against such nominee’s election; provided, however, that directors shall be elected by a plurality of the votes properly cast at any meeting of stockholders at which there is a contested election of directors. 

Dividend Rights

Subject to applicable law and any preferential dividend rights of any series of Preferred Stock that the Company may designate and issue in the future, holders of Common Stock are entitled to share ratably in all dividends payable in cash, stock or otherwise as may be declared by the Board and paid from funds lawfully available therefor.

Liquidation Rights

In the event of the Company’s dissolution, liquidation or winding up, whether voluntary or involuntary, the holders of Common Stock are entitled to receive proportionately the Company’s net assets available for distribution to its stockholders after the payment or provision for payment of all debts and other liabilities and subject to the preferential and other amounts, if any, to which the holders of any series of Preferred Stock that the Company may designate and issue in the future may be entitled.  

 

 

Other Rights and Preferences

The Common Stock has no redemption provisions or preemptive, conversion or exchange rights. No shares of any class of the Company’s capital stock are subject to any sinking fund provisions, restrictions on the alienability of securities to be registered, calls, assessments by or liabilities of the Company. The Certificate of Incorporation and Bylaws do not restrict the ability of a holder of Common Stock to transfer his, her or its shares of Common Stock. All currently outstanding shares of Common Stock are fully paid and non-assessable. 

Transfer Agent and Registrar

The transfer agent and registrar for the Company’s Common Stock is American Stock Transfer & Trust Company, LLC.

Listing

The Company’s Common Stock is listed on the New York Stock Exchange (the “NYSE”) under the symbol “VAPO.”

Certain Provisions of the Certificate of Incorporation, Bylaws and the DGCL

Certain provisions of the Certificate of Incorporation, Bylaws and the DGCL may be deemed to have an anti-takeover effect and may delay, defer or prevent a change in control of the Company.

Anti-Takeover Effects of the Certificate of Incorporation and Bylaws

The Company’s Certificate of Incorporation and Bylaws contain certain provisions that are intended to enhance the likelihood of continuity and stability in the composition of the Board but which may have the effect of delaying, deferring or preventing a future takeover or change in control of the Company unless such takeover or change in control is approved by the Board.

These provisions include:

Authorized but unissued shares.  The Company’s authorized but unissued shares of Common Stock and Preferred Stock are available for future issuance without stockholder approval except as otherwise provided by the DGCL and the NYSE listing standards. These additional shares may be utilized for a variety of corporate purposes, including future public offerings to raise additional capital, corporate acquisitions and employee benefit plans. The existence of authorized but unissued shares of Common Stock and Preferred Stock could render more difficult or discourage an attempt to obtain control of a majority of the Company’s Common Stock by means of a proxy contest, tender offer, merger or otherwise. The Board is authorized to issue Preferred Stock in one or more series, from time to time, and, with respect to each such series, to fix the number of shares in each such series, the voting powers, and such designations, preferences and relative, participating, optional or other rights, and the qualifications, limitations or restrictions thereof. This may enable the Board to issue shares to persons friendly to current management or to issue Preferred Stock with terms that could render more difficult or discourage a third-party attempt to obtain control of the Company by means of a merger, tender offer, proxy contest or otherwise, thereby protecting the continuity of the Company’s management.

Classified Board.  The Company’s Certificate of Incorporation provides that the Board be divided into three classes of directors, with the classes as nearly equal in number as possible. As a result, approximately one-third of the Board will be elected each year. The classification of directors has the 

 

 

effect of making it more difficult for stockholders to change the composition of the Board. The Certificate of Incorporation also provides that, subject to any rights of holders of any series of Preferred Stock to elect directors, the number of directors will be fixed exclusively pursuant to a resolution adopted by the Board. 

Vacancies.  Vacancies and newly created directorships shall be filled exclusively by vote of a majority of the directors then in office, even if less than a quorum, or by a sole remaining director, except that any vacancy created by the removal of a director by the stockholders for cause shall only be filled, in addition to any other vote otherwise required by law, by a vote of a majority of the outstanding shares of Common Stock.

Removal of directors.  Subject to the rights of the holders of any series of Preferred Stock to elect directors, the Certificate of Incorporation provides that the directors of the Company may be removed only for cause by the affirmative vote of the holders of at least 75% of the voting power of the outstanding shares of capital stock of the Company entitled to vote generally in the election of directors, voting together as a single class, at a meeting of the stockholders called for that purpose. This requirement of a supermajority vote to remove directors could enable a minority of the Company’s stockholders to prevent a change in the composition of the Board.

Action by written consent.  Except as otherwise provided for or fixed with respect to any series of Preferred Stock, the Certificate of Incorporation provides that stockholder action can be taken only at an annual or special meeting of stockholders and cannot be taken by written consent in lieu of a meeting. 

Special meetings of stockholders.  Subject to the rights of the holders of any series of Preferred Stock, and to the requirements of applicable law, the Certificate of Incorporation provides that special meetings of the stockholders can only be called pursuant to a written resolution adopted by a majority of the Board. Stockholders are not permitted to call a special meeting or to require the Board to call a special meeting.

Advance notice procedures.  The Bylaws have advance notice procedures for stockholder proposals to be brought before an annual meeting of its stockholders, including proposed nominations of persons for election to the Board. Stockholders at an annual meeting are only be able to consider proposals or nominations specified in the notice of meeting or brought before the meeting by or at the direction of the Board or by a stockholder of record who was a stockholder of record at the time of the giving of the notice, is entitled to vote at the meeting and who has given the Company’s Secretary timely written notice, in proper form, of the stockholder’s intention to bring that business before the meeting. Although the Bylaws do not give the Company’s Board the power to approve or disapprove stockholder nominations of candidates or proposals regarding other business to be conducted at a special or annual meeting, the Bylaws may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed or may discourage or deter a potential acquirer from conducting a solicitation of proxies to elect its own slate of directors or otherwise attempting to obtain control of the Company.

Supermajority approval requirements.  The affirmative vote of holders of at least 75% of the voting power of the outstanding shares of capital stock of the Company entitled to vote with respect thereto, voting together as a single class, is required to make, alter, amend or repeal the Bylaws. This requirement of a supermajority vote to approve amendments to the Bylaws could enable a minority of its stockholders to exercise veto power over any such amendments. The affirmative vote of the holders of at least 75% of the voting power of the outstanding shares of capital stock of the Company entitled to vote generally in the election of directors, voting together as a single class, at a meeting of the stockholders called for such purpose, is required to amend certain provisions of the Certificate of Incorporation, 

 

 

including provisions related to capitalization, the Board, limitation of director liability, no action by written consent, special meetings of stockholders, and amendments to the Bylaws and the Certificate of Incorporation. This requirement of a supermajority vote to approve amendments to these provisions could enable a minority of its stockholders to exercise veto power over any such amendments.

Exclusive forum.  The Company’s Certificate of Incorporation requires, to the fullest extent permitted by law, that (i) any derivative action or proceeding brought on behalf of the Company, (ii) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Company to the Company or the Company’s stockholders, (iii) any action asserting a claim against the Company arising pursuant to any provision of the DGCL, the Certificate of Incorporation or the Bylaws, (iv) any action to interpret, apply, enforce or determine the validity of the Certificate of Incorporation or the Bylaws or (v) any action asserting a claim against the Company governed by the internal affairs doctrine be brought only in specified courts in the State of Delaware. The Company’s Certificate of Incorporation additionally requires that actions arising under the Securities Act of 1933, as amended, be brought only in the federal district courts of the United States of America. Because Section 27 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) creates exclusive federal jurisdiction over all suits brought to enforce any duty or liability created by the Exchange Act or the rules and regulations thereunder, this provision does not apply to claims made under the Exchange Act. Although the Company believes these provisions beneficially provide increased consistency in the application of relevant law in the types of lawsuits to which it applies, such provision may have the effect of discouraging lawsuits against the Company’s directors and officers.

Section 203 of the DGCL

The Company is subject to the provisions of Section 203 of the DGCL. In general, Section 203 prohibits a publicly-held Delaware corporation from engaging in a “business combination” with an “interested stockholder” for a three-year period following the time that this stockholder becomes an interested stockholder, unless the business combination is approved in a prescribed manner. A “business combination” includes, among other things, a merger, asset or stock sale or other transaction resulting in a financial benefit to the interested stockholder. Generally, an “interested stockholder” is a person who, together with affiliates and associates, owns, or did own within three years prior to the determination of interested stockholder status, 15% or more of the corporation’s voting stock.

Under Section 203, a business combination between a corporation and an interested stockholder is prohibited unless it satisfies one of the following conditions: before the stockholder became interested, the corporation’s board of directors approved either the business combination or the transaction which resulted in the stockholder becoming 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, for purposes of determining the voting stock outstanding, shares owned by persons who are directors and also officers and employee stock plans, in some instances; or at or after the time the stockholder became interested, the business combination was approved by the board of directors of the corporation and authorized at an annual or special meeting of the stockholders by the affirmative vote of at least two-thirds of the outstanding voting stock which is not owned by the interested stockholder.

A Delaware corporation may “opt out” of these provisions with an express provision in its original certificate of incorporation or an express provision in its certificate of incorporation or bylaws resulting from a stockholders’ amendment approved by at least a majority of the outstanding voting shares. The Company has not opted out of these provisions. As a result, mergers or other takeover or change in control attempts of the Company may be discouraged or prevented.vapo-ex107_537.htm

 

Exhibit 10.7

FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT

This First Amendment to Loan and Security Agreement (this “Amendment”) is entered as of December 1, 2021, by and among Canadian Imperial Bank of Commerce (“Bank”) and VAPOTHERM, INC., a Delaware corporation (“Borrower Representative”), HGE HEALTH CARE SOLUTIONS, llc, a Delaware limited liability company (“HGE”, and together with Borrower Representative and each Person party to the Loan Agreement (as defined below) as a borrower from time to time, collectively, “Borrowers”, and each, a “Borrower”).  

RECITALS

A.Borrower Representative and Bank are parties to that certain Loan and Security Agreement, dated as of October 21, 2020 (as amended, restated, supplemented or otherwise modified, the “Loan Agreement”).

B.HGE entered into that certain Joinder to Loan and Security Agreement, dated as of December 7, 2020, pursuant to which it became a Borrower.  

C.The parties desire to modify the terms of the Loan Agreement as set forth in this Amendment, subject to the terms and conditions hereof. 

AGREEMENTS

1.Defined Terms. Capitalized terms used but not defined in this Amendment shall have the meanings set forth in the Loan Agreement. 

2.Amendments.  

2.1A new clause (g) is hereby added to Section 5.2, of the Agreement, to read as follows: 

(g)For each item of Inventory included as Eligible Inventory in any Borrowing Base Report, such item of Inventory conforms to the requirements set forth in the defined term “Eligible Inventory”.  Such Inventory has been manufactured in accordance with all Requirements of Law and meets all applicable governmental standards.

2.2The following defined terms in Exhibit A are hereby amended and restated or added in appropriate alphabetical order, as applicable: 

“Borrowing Base” means, as of any date of determination, the sum of (i) 85.0% of the aggregate amount of Eligible Accounts, and (ii) the lesser of (A) 25.0% of the aggregate amount of Eligible Inventory, valued at the lower of cost or market on a first-in, first-out basis, and (B) $4,000,000, in each case, as of the most recent date a Borrowing Base Report is required to be delivered hereunder, as determined by Bank from such most recent Borrowing Base Report, provided that Bank may reduce the Borrowing Base, in its good faith business judgment to mitigate the impact of events, conditions, contingencies or risks which may adversely affect the Collateral.

“Eligible Inventory” means, at any time, the aggregate of Borrowers’ Inventory that (a) consists of finished goods, in good, new, and salable condition, which is not perishable, returned, consigned, obsolete, not sellable, damaged, or defective, and is not comprised of demonstrative or custom inventory, works in progress, packaging or shipping materials, or supplies; (b) meets all applicable governmental standards; (c) has been manufactured in compliance with the Fair Labor Standards Act; (d) is subject to the first priority Liens granted in favor of Bank and is not subject to any other Lien other than Permitted Liens; (e) is located in the United States at a location is subject to a Collateral Access Agreement; and (f) is otherwise acceptable to Bank in its good faith business judgment. 

2.3Exhibit D-2 is hereby amended and restated as set forth on Exhibit D-2 hereto.

 

 

3.Reaffirmation of Obligations.  

3.1Each Borrower hereby acknowledges that the Obligations due and owing to Bank are without setoff, recoupment, defense or counterclaim, in law or in equity, of any nature or kind.  All security interests granted to Bank by each Borrower under any Loan Document are hereby reaffirmed by such Borrower and the security interests previously granted shall continue to secure the Obligations without novation from the date of original grant.  The terms of the Loan Documents remain in full force and effect.  The foregoing modification does not constitute a waiver of any Event of Default and shall not obligate Bank to modify any other term or waive compliance with any covenant in the Loan Documents.  Bank’s agreement to the modifications as set forth herein shall not establish a course of dealing between the parties with respect to any future requested modification. 

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

4.1The representations and warranties contained in the Agreement and the other Loan Documents are true and correct in all material respects as of the date of this Amendment (except for such representations and warranties referring to another date, which representations and warranties are true and correct in all material respects as of such date).

4.2No Event of Default has occurred or presently exists.

4.3Such Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Agreement, as amended by this Amendment.

4.4The execution and delivery by such Borrower of this Amendment and the performance by such Borrower of its obligations under the Agreement (a) have been duly authorized by all necessary action on the part of such Borrower, and (b) will not contravene (i) any law or regulation binding on or affecting such Borrower, (ii) any contractual restriction with a Person binding on such Borrower, (iii) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on such Borrower, or (iv) the Operating Documents of such Borrower.

4.5The execution and delivery by such Borrower of this Amendment and the performance by such Borrower of its obligations under the 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 such Borrower, except as already has been obtained or made. 

5.Counterparts; Electronic Execution of Documents.  This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, is an original, and all taken together, constitute one Agreement.  Delivery of an executed counterpart of a signature page of this Amendment or any document delivered in connection therewith by electronic means including by email delivery of a “.pdf” format data file shall be effective as delivery of an original executed counterpart thereof. 

6.Effectiveness.  This Amendment shall be effective upon 

6.1due execution and delivery of this Amendment by the parties hereto; 

6.2an updated Perfection Certificate; and 

6.3payment of an amendment fee of $5,000 and all Bank Expenses incurred in connection with this Amendment as of the date hereof; 

[remainder of page intentionally left blank]

 

 

 

 

[signature page to first amendment TO loan and security agreement]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date set forth above.

BORROWERs:

 

	
VAPOTHERM, INC.

	
 
	
 
	
 

	
By: 
	
 
	
/s/ John Landry

	
Name:
	
 
	
John Landry

	
Title: 
	
 
	
Senior Vice President and Chief Financial Officer

	
 
	
 
	
 

	
 
	
 
	
 

	
HGE HEALTH CARE SOLUTIONS, LLC,

	
 
	
 
	
 

	
By: 
	
 
	
/s/ John Landry

	
Name:
	
 
	
John Landry

	
Title: 
	
 
	
Manager

	
 
	
 
	
 

	
 
	
 
	
 

	
BANK:

	
 
	
 
	
 

	
CANADIAN IMPERIA BANK OF COMMERCE

	
 
	
 
	
 

	
By: 
	
 
	
/s/ Jeff Chapman

	
Name:
	
 
	
Jeff Chapman

	
Title: 
	
 
	
Assistant General Manager

	
 
	
 
	
 

	
By: 
	
 
	
/s/ Corey Perlmutter

	
Name:
	
 
	
Corey Perlmutter

	
Title: 
	
 
	
Assistant General Manager

 

 

 

 

 

 

EXHIBIT D-2

BORROWING BASE report

Reference is made to that certain Loan and Security Agreement, dated October 21, 2020 (as amended, restated, supplemented or otherwise modified, from time to time, the “Agreement”), among Canadian Imperial Bank of Commerce (“Bank”), Vapotherm, Inc., a Delaware corporation (“Borrower Representative”, and together with each other Person party thereto as a borrower from time to time, collectively, “Borrowers”, and each, a “Borrower”).  Capitalized terms have meanings as defined in the Agreement.

The undersigned authorized officer of Borrower Representative, hereby certifies in accordance with the terms of the Agreement that the attached calculation of the Availability Amount as of the date of this Borrowing Base Report is true and correct. 

Report Date: _______________________

			
	
(A)
	
AGGREGATE ACCOUNS
	
$

	
(B)
	
AGGREGATE AMOUNT OF INELIGIBLE ACCOUNTS – sum of below ineligible Accounts, without duplication
	
$

	
 
	
Aged Past 90 Days – Accounts not paid within 90 days of invoice date (regardless of invoice payment period terms)
	
$

	
 
	
Cross-Aged Past 90 Days – Accounts owing from an Account Debtor if 50% or more of the Accounts owing from such Account Debtor have not been paid within 90 days of invoice date
	
$

	
 
	
Concentration – Accounts owing from an Account Debtor, whose total obligations to Borrowers exceed 25.0% of all Accounts, to the extent of such excess 
	
$

	
 
	
Affiliate – Accounts for which the Account Debtor is a Borrower’s Affiliate
	
$

	
 
	
Government – Accounts owing from an Account Debtor which is a Governmental Authority;
	
$

	
 
	
Contra Accounts – Accounts owing from an Account Debtor to the extent that Borrower is indebted or obligated in any manner to the Account Debtor (as creditor, lessor, supplier or otherwise), in each case, to the extent of such obligation
	
$

	
 
	
Foreign Account Debtors / Foreign Billed / Foreign Currency – Accounts (i) owing from an Account Debtor (A) which does not have its principal place of business in the United States or Canada or (B) whose billing address (as set forth in the applicable invoice for such Account) is not in the United States or Canada, or (ii) billed from and/or payable to a Borrower outside of the United States, or (iii) billed and/or payable in a Currency other than US Dollars or Canadian Dollars
	
$

	
 
	
No Perfected Security Interest – Accounts in which Bank does not have a first priority, perfected security interest under all applicable laws;
	
$

	
 
	
Accrual of Allowances / Rebates / Credits – Accounts with or in respect of accruals for marketing allowances, incentive rebates, price protection, cooperative advertising and other similar marketing credits
	
$

	
 
	
Disputed Accounts – Accounts in which the Account Debtor disputes liability or makes any claim (to the extent of the disputed or claimed amount)
	
$

	
 
	
Insolvent Account Debtor – Accounts in which Account Debtor is subject to an Insolvency Proceeding or becomes insolvent, or goes out of business
	
$

	
 
	
Upfront Payments / Deposits – Accounts with customer deposits and/or with respect to which Borrower has received an upfront payment, to the extent of such customer deposit and/or upfront payment
	
$

	
 
	
Consignment, Etc. – Accounts for demonstration or promotional equipment, or in which goods are consigned, or sold on a “sale guaranteed”, “sale or return”, “sale on approval”, or other similar terms
	
$

	
 
	
No Performance – Accounts owing from an Account Debtor where goods have not yet been shipped to the Account Debtor or services have not yet been rendered to the Account Debtor
	
$

 

 

			
	
 
	
Withholding / Contingency – Accounts owing from an Account Debtor the amount of which may be subject to withholding or are contingent pending complete performance, completion or fulfillment requirements (to the extent of the amount subject to withholding or contingency)
	
$

	
 
	
Trust / Bonded – Accounts subject to trust provisions, subrogation rights of a bonding company, or a statutory trust;
	
$

	
 
	
Not Invoiced – Accounts for which the Account Debtor has not been invoiced
	
$

	
 
	
Non-Trade – Accounts that represent non-trade receivables
	
$

	
 
	
Chargebacks / Returns / Exchanges – Accounts arising from chargebacks, debit memos or other payment deductions taken by an Account Debtor, or arising from product returns and/or exchanges
	
$

	
 
	
 
	
 

	
(C)
	
AGGREGATE AMOUNT OF ELIGIBLE ACCOUNTS – line (A) less line (B)
	
$

	
(D)
	
accounts Advance Rate: 
	
85.0%

	
(E)
	
AGGREGATE AMOUNT OF ELIGIBLE INVENTORY
	
$

	
(F)
	
INVENTORY AMOUNT CAP
	
$4,000,000

	
(G)
	
bORROWING BASE INVENTORY AMOUNT – lesser of line (E) and line (f) 
	
$

	
(H)
	
inventory Advance Rate: 
	
25.0%

	
(I)
	
BORROWING BASE – line (C) multiplied by line (D) plus line (G) multiplied by line (H)
	
$ 

	
(J)
	
REVOLVING LINE AMOUNT: 
	
$12,000,000

	
(K)
	
OUTSTANDING AMOUNTS UNDER REVOLVING LINE – sum of below outstanding amounts
	
$

	
 
	
Outstanding Advances: 
	
$

	
 
	
Outstanding Amounts under Letter of Credit Sublimit
	
$

	
 
	
Outstanding Amounts under Cash Management Services Sublimit
	
$

	
(L)
	
AVAILABILITY AMOUNT – lesser of line (I) and line (J) less line (K) 
	
$

 

 

	
BORROWER REPRESENTATIVE:

	
 
	
 
	
 

	
VAPOTHERM, INC.

	
 

	
 

	
By: 
	
 
	
 

	
Name:
	
 
	
 

	
Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00340-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00340-of-00352.parquet"}]]