Document:

Exhibit 10.2

 

FORFEITURE AGREEMENT

 

Reference is made to that certain: (i) Agreement and Plan of Merger, dated November 3, 2017, by and among M III Acquisition Corp. (the “Company”), IEA Energy Services LLC (“IEA Services”), Wind Merger Sub I, Inc. (“Merger Sub I”), Wind Merger Sub II, LLC (“Merger Sub II”), Infrastructure and Energy Alternatives, LLC, Oaktree Power Opportunities Fund III Delaware, L.P., solely in its capacity as IEA Parent’s representative, and, solely for purposes of certain sections therein, M III Sponsor I LLC (“Sponsor I LLC”) and M III Sponsor I LP (together with Sponsor I LLC, the “Sponsors”), (as amended from time to time, the “Merger Agreement” and the transactions contemplated thereby, the “Business Combination”); and  (ii) the Subscription and Backstop Agreement, dated as of the date hereof, by and among the Company, the Sponsors and the subscribers identified on the signature pages thereto, together with any schedules and exhibits attached thereto (the “Subscription and Backstop Agreement”).

 

In connection with the Company’s entry into the Subscription and Backstop Agreement, the Sponsors have agreed to enter into this Forfeiture Agreement (this “Agreement”).  For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Sponsors and the Company hereby agree as follows:

 

1.                                      Each of the Sponsors hereby agrees, upon and subject to (a) the closing of the Business Combination (the “Closing”) and (b) the issuance by the Company of 1,500,00 Warrants (the “New Warrants”) contemplated by the Subscription and Backstop Agreement (exercisable for 750,000 shares of Common Stock), to forfeit the number of Founder Shares (the “Forfeited Shares”) set forth on the signature pages hereto, subject to Section 3 below.   In order to effectuate such forfeiture, upon the Closing, each of the Sponsors shall deliver the Forfeited Shares to the Company in certificated or book entry form (at the election of the Sponsors) for cancellation by the Company.

 

2.                                      The Company hereby agrees, (a) upon and subject to the Closing and (b) simultaneous with the forfeiture of the Forfeited Shares, to issue the New Warrants to such persons (natural or otherwise) specified in the Subscription and Backstop Agreement; provided that such issuance will not cause the Company to be in violation of applicable law or regulation.

 

3.                                      If the Sponsors elect, at their sole discretion, to deliver, or one of the Sponsors’ affiliates elects to deliver, to the subscribers under the Subscription and Backstop Agreement, public warrants in lieu of the issuance by the Company of some or all of the Warrants required to be issued to such subscribers pursuant to the Subscription and Backstop Agreement, the number of Founder Shares that the Sponsors shall be obligated to forfeit shall be proportionally reduced.

 

4.                                      Each of the Sponsors hereby agrees that it shall not sell, transfer, or otherwise dispose of, or hypothecate or otherwise grant any interest in or to, any Founder Shares beneficially owned by it to the extent any such transaction would cause the Sponsor to hold less than the number of Forfeited Shares set forth on the signature pages hereto.  Until and unless the Forfeited Shares are forfeited, the Sponsors shall have full ownership rights to the Forfeited Shares, including the right to vote such shares.

 

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5.                                      This Agreement may not be changed, amended, modified or waived as to any particular provision, except by a written instrument executed by all parties hereto.

 

6.                                      No party hereto may assign either this Agreement or any of its rights, interests, or obligations hereunder without the prior written consent of the other parties hereto, and any purported assignment in violation of the foregoing shall be null and void ab initio. This Agreement shall be binding on the parties hereto and their respective successors and assigns.

 

7.                                      This Agreement shall be construed and interpreted in a manner consistent with the provisions of the Merger Agreement. The provisions set forth in Sections 12.15 [Governing Law and Jurisdiction], 12.16 [Consent to Jurisdiction and Service of Process] and 12.17 [Waiver of Jury Trial], as in effect as of the date hereof, are hereby incorporated by reference into, and shall be deemed to apply to, this Agreement as if all references to the “Agreement” in such sections were instead references to this Agreement.

 

8.                                      Any notice, consent or request to be given in connection with any of the terms or provisions of this Agreement shall be in writing and shall be sent in the same manner as provided in the Merger Agreement, with notices to the Company and the Sponsors being sent to the addresses set forth therein, in each case with all copies as required thereunder.

 

9.                                      This Agreement shall terminate at such time, if any, as either the Merger Agreement or the Subscription and Backstop Agreement is terminated in accordance with its terms, and upon such termination this Agreement shall be null and void and of no effect whatsoever, and the parties hereto shall have no obligations under this Agreement.

 

{Remainder of Page Intentionally Left Blank; Signature page follows}

 

 

Agreed to this 7th day of March, 2018:

 

 

	
 
    	
M III ACQUISITION CORP.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Mohsin Y. Meghji
    
	
 
    	
 
    	
Name:   Mohsin Y. Meghji
    
	
 
    	
 
    	
Title:   Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
M III SPONSOR I LLC
    
	
 
    	
 
    
	
 
    	
By:     M III ACQUISITION PARTNERS I LLC, its Managing Member
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Mohsin Y. Meghji
    
	
 
    	
 
    	
Name:   Mohsin Y. Meghji
    
	
 
    	
 
    	
Title:   Managing Member
    
	
 
    	
 
    
	
 
    	
Number of Forfeited Shares: 130,334
    
	
 
    	
 
    
	
 
    	
M III SPONSOR I LP
    
	
 
    	
 
    
	
 
    	
By:     M III ACQUISITION PARTNERS I CORP.,   its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Mohsin Y. Meghji
    
	
 
    	
 
    	
Name:   Mohsin Y. Meghji
    
	
 
    	
 
    	
Title:   Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
Number of Forfeited Shares: 8,319Exhibit

THIRD AMENDMENT TO 
LOAN AND SECURITY AGREEMENT
THIS THIRD AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered into as of December 18, 2017, by and between OXFORD FINANCE LLC, a Delaware limited liability company with an office located at 133 North Fairfax Street, Alexandria, Virginia 22314 (“Oxford”), as collateral agent (in such capacity, “Collateral Agent”), the Lenders listed on Schedule 1.1 of the Loan Agreement (as defined below) or otherwise party thereto from time to time (each a “Lender” and collectively, the “Lenders”) including Oxford in its capacity as a Lender and CONFORMIS, INC., a Delaware corporation (“ConforMIS”) and IMATX, INC., a California corporation (“ImaTx” and individually, collectively, jointly and severally with ConforMIS, “Borrower”).
RECITALS
A.Collateral Agent, Lenders and Borrower have entered into that certain Loan and Security Agreement dated as of January 6, 2017, as amended by that certain First Amendment to Loan and Security Agreement dated as of March 9, 2017 and that certain Second Amendment to Loan and Security Agreement dated as of June 30, 2017 (as amended from time to time, the “Loan Agreement”).
B.    Lenders have extended credit to Borrower for the purposes permitted in the Loan Agreement.  
C.    Borrower has requested that Collateral Agent and Lenders (i) modify the definition of “Permitted Indebtedness” and “Permitted Liens” found in Section 13.1 of the Loan Agreement; and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein.
D.    Collateral Agent and Lenders have agreed to modify such covenant, 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 13.1 (Definitions). New subsection (i) is hereby added to the definition of “Permitted Indebtedness” in Section 13.1 of the Loan Agreement to read as follows:
“(i)    Indebtedness not to exceed One Million Five Hundred Thousand Dollars ($1,500,000.00) from time to time outstanding related to financing insurance premiums.”
2.2    Section 13.1 (Definitions). New subsection (k) is hereby added to the definition of “Permitted Liens” in Section 13.1 of the Loan Agreement to read as follows:
“(k)    Liens (which may have priority to those in favor of the Collateral Agent up to One Million Five Hundred Thousand Dollars ($1,500,000.00)) on rights under insurance policies and insurance proceeds in favor of insurance companies granted solely to secure financed insurance premiums and related amounts arising under the financing agreement, securing liabilities in connection with Indebtedness permitted under clause (i) of the definition of “Permitted Indebtedness”.”

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3.    Limitation of Amendment.
3.1    The amendment set forth in Section 2 above, is 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 Collateral Agent or any Lender 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 Collateral Agent and Lenders to enter into this Amendment, Borrower hereby represents and warrants to Collateral Agent and Lenders 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 in all material respects 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 Collateral Agent and Lenders on the Effective Date, or subsequent thereto, 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 material Requirement of Law or regulation binding on or affecting Borrower, (b) any material 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 Borrower; 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 (i) the due execution and delivery to Collateral Agent and Lender of this Amendment by each party hereto, and  (ii) Borrower’s payment of all Lenders’ Expenses incurred through the date of this Amendment.
[Balance of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

	
		
	BORROWER

	 

	CONFORMIS

	 

	By
	/s/Paul S. Weiner

	Name:
	Paul S. Weiner

	Title:
	CFO

	
		
	IMATX, INC.

	 

	By
	/s/Paul S.Weiner

	Name:
	Paul S. Weiner

	Title:
	CFO

	
		
	COLLATERAL AGENT AND LENDER:

	 

	OXFORD FINANCE LLC

	 

	By
	/s/Colette H. Featherly

	Name:
	Colette H. Featherly

	Title:
	Senior Vice President

[Signature Page to Third Amendment to Loan and Security Agreement]

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