Document:

pi-ex101_236.htm

Exhibit 10.1

FIRST AMENDMENT
TO
THIRD AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

THIS FIRST AMENDMENT to Third Amended and Restated Loan and Security Agreement (this “Amendment”) is entered into this 5th day of March 2018, by and between SILICON VALLEY BANK (“Bank”) and IMPINJ, INC., a Delaware corporation (“Borrower”) whose address is 400 Fairview Ave. N. Suite 1200, Seattle, WA 98109.

Recitals

A.Bank and Borrower have entered into that certain Third Amended and Restated Loan and Security Agreement dated as of April 24, 2017 (as the same may from time to time be amended, modified, supplemented or restated, the “Loan Agreement”).  

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

C.Bank and Borrower have agreed to 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.Amendment to Loan Agreement.

2.1Section 2.1.2 (Term Loan).  Section 2.1.2 of the Loan Agreement hereby is amended and restated in its entirety and replaced with the following: 

“2.1.2Term Loan. 

(a)Availability.  On the First Amendment Effective Date, or as soon thereafter as all conditions precedent to the making thereof have been met, Bank shall make a term loan to Borrower in an aggregate principal amount equal to Twenty Million Dollars ($20,000,000) (the “Term Loan”), the proceeds of which shall be used to refinance all Indebtedness owing from Borrower to Bank outstanding as of the First Amendment Effective Date (excluding Indebtedness under the Revolving Line and with respect to Bank Services), for working capital and to fund its general business requirements.   For the avoidance of doubt, in connection with the making of the Term Loan, Bank hereby waives the Equipment Advance Prepayment Fee and the Term Loan Prepayment Fee (as such terms were defined prior to the First Amendment Effective Date).

(b)Repayment.  No principal payments with respect to the Term Loan shall be required from the First Amendment Effective Date through March 31, 2019 (the “Interest-Only Period”), provided that accrued and unpaid interest shall be due and payable in accordance with Section 2.3(a) hereof.  Any amount of the Term Loan outstanding on 

 

 

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March 31, 2019, shall be payable in (i) thirty-six (36) consecutive equal monthly installments of principal, plus (ii) monthly payments of accrued interest (each a “Term Loan Payment”), beginning on April 1, 2019, and continuing on the first day of each month thereafter through the Term Loan Maturity Date.  Borrower’s final Term Loan Payment, due on the Term Loan Maturity Date, shall include all outstanding principal and accrued and unpaid interest under the Term Loan.  Once repaid, the Term Loan may not be reborrowed. 

(c)Prepayment.  

(i)Mandatory Prepayment Upon an Acceleration.  If the Term Loan is accelerated following the occurrence of an Event of Default, Borrower shall immediately pay to Bank an amount equal to the sum of (a) all outstanding principal with respect to the Term Loan, plus accrued and unpaid interest thereon, (b) the Term Loan Prepayment Fee, and (c) all other sums, including Bank Expenses, if any, that shall have become due and payable hereunder in connection with the Term Loan.

(ii)Voluntary Prepayment.  So long as an Event of Default has not occurred and is not continuing, Borrower shall have the option to prepay all, but not less than all, of the Term Loan, provided Borrower (a) delivers written notice to Bank of its election to prepay the Term Loan at least ten (10) days prior to such prepayment, and (b) pays, on the date of such prepayment (i) all outstanding principal with respect to the Term Loan, plus accrued and unpaid interest thereon, (ii) the Term Loan Prepayment Fee, and (iii) all other sums, including Bank Expenses, if any, that shall have become due and payable hereunder in connection with the Term Loan.

2.2Section 2.1.3 (Equipment Advances).  Section 2.1.3 of the Loan Agreement hereby is amended and restated in its entirety and replaced with the following: 

“2.1.3Intentionally Omitted.”

2.3Section 2.4 (Fees).  Section 2.4(c) of the Loan Agreement hereby is amended and restated in its entirety and replaced with the following: 

“(c)Intentionally Omitted.”

2.4Section 5.10 (Use of Proceeds).  Section 5.10 of the Loan Agreement hereby is amended and restated in its entirety and replaced with the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

“5.10Use of Proceeds.  Borrower shall use the proceeds of the Credit Extensions solely as working capital and for general corporate purposes and not for personal, family, household or agricultural purposes.”

2.5Section 6.7 (Financial Covenants).  Section 6.7 of the Loan Agreement hereby is amended and restated in its entirety and replaced with the following: 

“6.7Financial Covenants.  Maintain at all times when Borrower’s Bank Liquidity is less than the Liquidity Threshold (such Liquidity Threshold to be tested as of the last day of each month) on a consolidated basis with respect to Borrower:

(a)Adjusted EBITDA Loss.  Adjusted EBITDA loss, measured on a trailing twelve (12) month basis as of the last day of each calendar quarter, of not greater than the following amounts for the relevant measuring periods:

 

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Measuring Period Ending
	
Maximum Adjusted EBITDA Loss

	
***
	
***

	
***
	
***

	
***
	
***

 

	
(b)
	
Liquidity Ratio.  A ratio, measured as of the last day of each fiscal quarter of Borrower, of (I) unrestricted cash at Bank or Bank’s Affiliates (subject to a Control Agreement) plus net Accounts receivable, to (II) all Indebtedness (excluding Indebtedness owed to Bank from credit cards but including outstanding letters of credit) owing from Borrower to Bank of not less than 1.50 to 1.00.”
	
 

2.1Section 7.1 (Dispositions).  Section 7.1 of the Loan Agreement hereby is amended and restated in its entirety and replaced with the following: 

“7.1Dispositions.  Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively, “Transfer”), or permit any of its Subsidiaries to Transfer, all or any part of its business or property, except for Transfers (a) of Inventory in the ordinary course of business; (b) of worn out or obsolete Equipment; (c) in connection with Permitted Liens and Permitted Investments; (d) of non-exclusive licenses for the use of the property of Borrower or its Subsidiaries in the ordinary course of business and licenses that could not result in a legal transfer of title of the licensed property but that may be exclusive in respects other than territory and that may be exclusive as to territory only as to discreet geographical areas outside of the United States and (e) other Transfers that do not exceed $500,000 per fiscal year.”

2.2Section 8.1 (Payment Default).  Section 8.1 of the Loan Agreement hereby is amended and restated in its entirety and replaced with the following: 

“8.1Payment Default.  Borrower fails to (a) make any payment of principal or interest on any Credit Extension on its due date, or (b) pay any other Obligations within three (3) Business Days after such Obligations are due and payable (which three (3) Business Day cure period shall not apply to payments due on the Revolving Line Maturity Date or the Term Loan Maturity Date).  During the cure period, the failure to make or pay any payment specified under clause (a) or (b) hereunder is not an Event of Default (but no Credit Extension will be made during the cure period).”

2.3Section 13 (Definitions).  The following terms and their respective definitions set forth in Section 13.1 hereby are added or amended and restated in their entirety and replaced with the following, as appropriate:

“Credit Extension” is any Advance, the Term Loan, Letter of Credit or any other extension of credit by Bank for Borrower’s benefit.

“First Amendment Effective Date” is March 5, 2018.

 

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“LIBOR Rate Margin” is (a) with respect to Advances, (i) if Borrower’s trailing twelve (12) month Adjusted EBITDA is equal to or greater than Zero Dollars ($0.00), two and three quarters of one percent (2.75%) and (ii) in all other cases, three and one quarter of one percent (3.25%), and (b) with respect to the Term Loan, (i) if Borrower’s trailing twelve (12) month Adjusted EBITDA is equal to or greater than Zero Dollars ($0.00), three percent (3.00%) and (ii) in all other cases, three and one half of one percent (3.50%).  

“Liquidity Threshold” means (i) Sixty Million Dollars ($60,000,000) for the period of time beginning on the First Amendment Effective Date and ending on December 31, 2018; and (ii) Fifty Five Million Dollars ($55,000,000) for the period of time beginning on January 1, 2019 and at all times thereafter.

“Permitted Acquisition” means an acquisition by Borrower of all or substantially all of the assets or capital stock of another Person, including the creation and capitalization of any Subsidiary in connection with such acquisition, in which: (a) the Borrower’s board of directors has approved such acquisition, (b) the Person so acquired is in the same or a similar line of business or a business reasonably related thereto, (c) the acquisition is non-hostile, (d) Borrower is the sole surviving legal entity or any acquired Subsidiary is directly or indirectly owned by Borrower and, at Bank’s election, made in its sole discretion, such entity becomes a Borrower hereunder within thirty (30) days after the closing of such acquisition, (e) both before and after giving effect to such acquisition (including any Earn-out Obligations), Borrower has Bank Liquidity in an amount no less than the Liquidity Threshold, (f) no Event of Default shall have occurred and be continuing either before consummation of such acquisition or after giving effect to such acquisition, (g) both before and after giving effect to such acquisition, Borrower is able to demonstrate pro-forma compliance with all provisions of this Agreement and (h) the parties comply with Section 6.11 hereof in connection with the closing thereof (subject to clause (d), above).

“Prime Rate Margin” is (a) with respect to Advances, (i) if Borrower’s trailing twelve (12) month Adjusted EBITDA is equal to or greater than Zero Dollars ($0.00), zero percent (0.00%) and (ii) in all other cases, one half of one percent (0.50%), and (b) with respect to the Term Loan, (i) if Borrower’s trailing twelve (12) month Adjusted EBITDA is equal to or greater than Zero Dollars ($0.00), one quarter of one percent (0.25%) and (ii) in all other cases, three quarters of one percent (0.75%).  

“Revolving Line Maturity Date” is March 5, 2020.

“Term Loan Maturity Date” is March 1, 2022.

“Term Loan Prepayment Fee” means a fee equal to (i) two percent (2.00%) of the principal amount of the Term Loan prepaid if the prepayment is on or prior to the first anniversary of the First Amendment Effective Date and (ii) one percent (1.00%) of the principal amount of the Term Loan prepaid if the prepayment is after the first anniversary of the First Amendment Effective Date but on or prior to the second anniversary of the First Amendment Effective Date. 

2.4Section 13 (Definitions).  Subsection (c) of the defined term “Permitted Liens” set forth in Section 13.1 hereby is amended and restated in its entirety and replaced with the following:

“(c)purchase money Liens (i) on Equipment acquired or held by Borrower incurred for financing the acquisition of the Equipment securing no more than Five Million Dollars ($5,000,000) in the aggregate amount outstanding, or (ii) existing on Equipment 

 

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when acquired, if the Lien is confined to the property and improvements and the proceeds of the Equipment;”

2.5Section 13 (Definitions).  The following terms and their respective definitions set forth in Section 13.1 hereby are deleted in their entirety:

“Eligible Equipment”, “Equipment Advance”, “Equipment Advance Prepayment Fee”, “Equipment Maturity Date”, “Financed Equipment”, “Original Equipment Advances”, “Original Equipment A Advance”, “Original Equipment B Advance”, “Other Equipment”.

2.6Exhibit D to the Loan Agreement is hereby replaced with Exhibit D attached hereto.

3.Limitation of Amendments.

3.1The 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.

3.2This 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:

4.1Immediately 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;

4.2Borrower 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;

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

4.4The 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;

4.5The 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;

 

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4.6The 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

4.7This 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 Bank of this Amendment by each party hereto, (ii) the due execution and delivery to Bank of updated Borrowing Resolutions in the form attached hereto and (iii) Borrower’s payment to Bank of (a) a facility fee with respect to the Revolving Line in the amount of Twenty Eight Thousand Six Hundred Forty Five Dollars ($28,645), (b) a facility fee with respect to the Term Loan in the amount of Twenty Seven Thousand Five Hundred Dollars ($27,500) and (c) all Bank Expenses incurred through the date of this Amendment.

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Exhibit 10.1

 

 

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

		
	
BANK

 

SILICON VALLEY BANK

 

 

By:/s/ Soren Peterson

 

Name:Soren Peterson

 

Title:Vice President
	
BORROWER

 

IMPINJ, INC.

 

 

By:/s/ Evan Fein 

 

Name:Evan Fein

 

Title:Chief Financial Officer

	
 
	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to First Amendment to Third Amended and Restated Loan and Security Agreement]

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Exhibit 10.1

 

EXHIBIT D 

COMPLIANCE CERTIFICATE

 

 

TO:SILICON VALLEY BANKDate:  

FROM:  IMPINJ, INC.

 

The undersigned authorized officer of Impinj, Inc. (“Borrower”) certifies that under the terms and conditions of the Third Amended and Restated Loan and Security Agreement between Borrower and Bank (the “Agreement”):

(1) Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below; (2) there are no Events of Default; (3) all representations and warranties in the Agreement are true and correct in all material respects on this date except as noted below; provided, however, that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date; (4) Borrower, and each of its Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement; and (5) no Liens have been levied or claims made against Borrower or any of its Subsidiaries relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to Bank.  

 

Attached are the required documents supporting the certification.  The undersigned certifies that these are prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes.  The undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered.  Capitalized terms used but not otherwise defined herein shall have the meanings given them in the Agreement.

 

			
	
Please indicate compliance status by circling Yes/No under “Complies” column.

	
 

	
Reporting Covenant
	
Required
	
Complies

	
 
	
 
	
 

	
Quarterly financial statements with 
Compliance Certificate
	
Quarterly within 45 days
	
Yes   No

	
Annual financial statement (CPA Audited)
	
FYE within 120 days
	
Yes   No

	
10‐Q, 10‐K and 8-K
	
Within 5 days after filing with SEC
	
Yes   No

	
Annual Projections
	
30 days after FYE
	
Yes   No

 

				
	
Financial Covenant
	
Required
	
Actual
	
Complies

	
 
	
 
	
 
	
 

	
Maintain at all times (measured quarterly)*
	
 
	
 
	
 

	
Adjusted EBITDA Loss (on a trailing twelve (12) month basis)
	
See Section 6.7
	
$_______
	
Yes   No

	
Liquidity 
	
>  1.50 : 1.00

 
	
_____:1.0
	
Yes   No

 

* Applicable only when Borrower’s Bank Liquidity is less than the Liquidity Threshold

 

	
Performance Pricing for Advances 
	
Applies

	
Trailing 12-month Adjusted EBITDA ≥  $0.00
	
LIBOR Rate + 2.75%/Prime Rate  + 0.00%
	
Yes   No

	
Trailing 12-month Adjusted EBITDA < $0.00
	
LIBOR Rate + 3.25%/Prime Rate  + 0.50%
	
Yes   No

	
 
	
 

1

 

 

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Exhibit 10.1

 

	
Performance Pricing for the Term Loan
	
Applies

	
Trailing 12-month Adjusted EBITDA ≥  $0.00
	
LIBOR Rate + 3.00%/Prime Rate  + 0.25%
	
Yes   No

	
Trailing 12-month Adjusted EBITDA < $0.00
	
LIBOR Rate + 3.50%/Prime Rate  + 0.75%
	
Yes   No

	
 
	
 

	
Determination of Unused Fee
	
Applies

	
Trailing 12-month Adjusted EBITDA ≥  $0.00
	
0.25%
	
Yes   No

	
Trailing 12-month Adjusted EBITDA < $0.00
	
0.35%
	
Yes   No

 

The following financial covenant analyses and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this Certificate.

The following are the exceptions with respect to the certification above:  (If no exceptions exist, state “No exceptions to note.”)

---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

 

		
	
IMPINJ, INC.

 

 

By: 

Name: 

Title: 

 
	
BANK USE ONLY

 

Received by: _____________________

authorized signer

Date: _________________________

 

Verified: ________________________

authorized signer

Date: _________________________

 

Compliance Status:Yes     No

 

 

 

 

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Exhibit 10.1

 

 

Schedule 1 to Compliance Certificate

 

Financial Covenants of Borrower

 

In the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern.

Dated:____________________

 

	
I.
	
Adjusted EBITDA Loss (Section 6.7(a))*

Required:Adjusted EBITDA Loss, measured quarterly on a trailing twelve (12) month basis, of not greater than the amounts set forth in Section 6.7(a) of the Loan Agreement

Actual:

			
	
A.
	
Net Income 
	
$

	
B.
	
To the extent included in the determination of Net Income
	
 

	
1.
	
The provision for income taxes
	
$

	
2.
	
Depreciation expense
	
$

	
3.
	
Amortization expense
	
$

	
4.
	
Net Interest Expense
	
$

	
5.
	
All non-cash impairment charges and non-cash stock compensation expense
	
$

	
6.
	
The sum of lines 1 through 5 
	
$

	
C.
	
Adjusted EBITDA (line A plus line B.6)
	
 

 

Is line C equal to or greater than the required amount set forth in Section 6.7(a) as of the end of the calendar quarter?

 

  No, not in compliance  Yes, in compliance

 

* Applicable only when Borrower’s Bank Liquidity is less than the Liquidity Threshold

1

 

 

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Exhibit 10.1

 

 

IILiquidity Ratio (Section 6.7(b))*

Required:A ratio, measured quarterly, of (I) unrestricted cash at Bank or Bank’s Affiliates (subject to a Control Agreement) plus net Accounts receivable, to (II) all Indebtedness (excluding Indebtedness owed to Bank from credit cards but including outstanding letters of credit) owing from Borrower to Bank of not less than 1.50 to 1.00.

Actual (quarter end):

			
	
A.
	
Aggregate value of Borrower’s unrestricted cash at Bank or Bank Affiliates subject to a Control Agreement

 
	
$

 

	
B.
	
Aggregate value of net Accounts receivable of Borrower 
	
$

 

	
C.
	
Liquidity (line A plus line B)
	
$

 

	
D.
	
Aggregate value of all Indebtedness owing from Borrower to Bank (including outstanding letters of credit)

 
	
$

 

	
E.
	
Aggregate value of all Indebtedness owed to Bank from credit cards

 
	
$

 

	
F.
	
Liquidity Ratio (line C divided by (line D minus line E))
	
____:1.00

 

 

Is line F equal to or greater than the ratio required above as of the end of the quarter?

  No, not in compliance  Yes, in compliance

 

* Applicable only when Borrower’s Bank Liquidity is less than the Liquidity Threshold

2

 

 

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Exhibit 10.1

 

 

BORROWING RESOLUTIONS

 

 

CORPORATE BORROWING certificatE

 

 

Borrower:  IMPINJ, INC.Date:  March 5, 2018

Bank:Silicon Valley Bank

 

I hereby certify as follows, as of the date set forth above:

1.  I am the Secretary, Assistant Secretary or other officer of the Borrower.   My title is as set forth below.

 

2.  Borrower’s exact legal name is set forth above.  Borrower is a corporation existing under the laws of the State of Delaware.

 

3.  Attached hereto are true, correct and complete copies of Borrower’s Certificate of Incorporation (including amendments), as filed with the Secretary of State of the state in which Borrower is incorporated as set forth in paragraph 2 above.  Such Certificate of Incorporation have not been amended, annulled, rescinded, revoked or supplemented, and remain in full force and effect as of the date hereof.  

 

4.  The following resolutions were duly and validly adopted by Borrower’s Board of Directors at a duly held meeting of such directors (or pursuant to a unanimous written consent or other authorized corporate action).  Such resolutions are in full force and effect as of the date hereof and have not been in any way modified, repealed, rescinded, amended or revoked, and Bank may rely on them until Bank receives written notice of revocation from Borrower.

 

Resolved, that any one of the following officers or employees of Borrower, whose names, titles and signatures are below, may act on behalf of Borrower:

				
	

Name
	

Title
	

Signature
	
Authorized to Add or Remove Signatories

 

	
 
	
 
	
 
	
□

 

	
 
	
 
	
 
	
□

 

	
 
	
 
	
 
	
□

 

	
 
	
 
	
 
	
□

 

 

 

Resolved Further, that any one of the persons designated above with a checked box beside his or her name may, from time to time, add or remove any individuals to and from the above list of persons authorized to act on behalf of Borrower.

 

Resolved Further, that such individuals may, on behalf of Borrower:

 

Borrow Money.  Borrow money from Bank.

Execute Loan Documents.  Execute any loan documents Bank requires. 

Grant Security.  Grant Bank a security interest in any of Borrower’s assets.

3

 

 

*** Indicates text has been omitted from this Exhibit pursuant to a confidential treatment request and has been filed separately with the Securities and Exchange Commission.

Exhibit 10.1

 

 

Negotiate Items.  Negotiate or discount all drafts, trade acceptances, promissory notes, or other indebtedness in which Borrower has an interest and receive cash or otherwise use the proceeds.

Letters of Credit.  Apply for letters of credit from Bank.

Further Acts.  Designate other individuals to request advances, pay fees and costs and execute other documents or agreements (including documents or agreement that waive Borrower’s right to a jury trial) they believe to be necessary to effectuate such resolutions.

 

Resolved Further, that all acts authorized by the above resolutions and any prior acts relating thereto are ratified. 

 

5.  The persons listed above are Borrower’s officers or employees with their titles and signatures shown next to their names.

 

IMPINJ, INC.

 

By:  

Name:  

Title:  

 

 

*** If the Secretary, Assistant Secretary or other certifying officer executing above is designated by the resolutions set forth in paragraph 4 as one of the authorized signing officers, this Certificate must also be signed by a second authorized officer or director of Borrower.

 

 

I, the __________________________ of Borrower, hereby certify as to paragraphs 1 through 5 above, as 
          [print title]

of the date set forth above.

 

 

By:  

Name:  

Title:  

 

 

4

 

 

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Exhibit 10.2

SEPARATION AND RELEASE OF CLAIMS AGREEMENT

This Separation and Release of Claims Agreement (“Agreement”) is entered into as of March 30, 2018, hereinafter “Effective Date,” by and between Evan Fein, his marital community, heirs, and assigns (hereinafter “Employee”), and Impinj Inc., its affiliates (including, without limitation, and all of its subsidiaries), its successors and assigns (hereinafter the “Company”).  Employee and the Company are sometimes collectively referred to as the “Parties.”

	
1.
	
Employee has an Executive Employment Agreement with the Company dated December 23, 2009 (“Employment Agreement”).  Employee’s employment with the Company will be terminated effective March 30, 2018, (hereinafter “Separation Date”).  The Company expressly disclaims any liability to Employee.  In exchange for the consideration described herein, Employee hereby represents and warrants the following: 

	
 
	
(a)
	
Employee has authority to enter into this Agreement.

	
 
	
(b)
	
Employee has not transferred, in whole or in part, any rights related to his employment with the Company.

	
 
	
(c)
	
Employee intends to settle any and all claims that Employee may have against the Company as a result of the Company’s hiring Employee, his employment with the Company and the termination of his employment with the Company. 

	
 
	
(d)
	
Employee has not transferred any Confidential Information. 

	
2.
	
Pursuant to Section 7(a) of the Employment Agreement, in exchange for Employee’s execution of this Agreement and the performance of his obligations hereunder, the Company agrees to provide to Employee the following severance benefits after the expiration of the seven (7) day revocation period described in Paragraph 14 below, upon which the Agreement becomes effective (“Effective Date”); provided, Employee has not revoked this Agreement as described in Paragraph 14:

	
 
	
(a)
	
On the first regular payroll date that is at least five (5) business days after the later of the Effective Date or the Separation Date, the Company will begin to pay to Employee on a salary continuation basis his Base Salary as described in Section 7(a)(ii)(A) of the Employment Agreement, less applicable taxes and withholdings, for a period of 6 months:

	
 
	
(b)
	
Provided Employee timely elects continuation coverage COBRA, reimbursement for COBRA premium costs for continued coverage for himself and his eligible covered dependents, at existing levels for up to six (6) months, or until Employee obtains replacement coverage, whichever is earlier; and,

	
 
	
(c)
	
On the first regular payroll date that is at least five (5) business days after the later of the Effective Date or the Separation Date, the Company will pay to Employee, less applicable taxes and withholdings: 

	
 
	
i.
	
$35,356.16, representing Employee’s target performance bonus accrued as of the Separation Date, 

 

 

	
 
	
ii.
	
$54,072.70, representing 387.84 accrued vacation hours at Employee’s current pay rate as per the Company’s current standard policy, and,

	
 
	
iii.
	
$10,000.00, in consideration of Employee’s commitment to provide up to 40 hours of transition consulting services from the Separation Date through May 4, 2018, and to, subject to Employee’s availability, provide additional transition consulting services as an independent contractor at a rate of $200/hr. should the Company request transition consulting services in excess of 40 hours prior to May 4, 2018, and anytime thereafter for up to 90 days following the Separation Date. 

	
 
	
(d)
	
The exercise period for vested stock options granted to Employee is extended by one year from the date such options may be exercised (i.e., three (3) months from the Separation Date), but in no cases later than the original maximum term of any stock option.  Options are governed by the Company’s equity incentive plan, and the option agreement under which it was granted (the “Equity Documents”). Employee will comply with the terms of the Company’s Insider Trading Policy (the “Policy”) through May 15, 2017 and for such time thereafter as required under the Policy or by law.  For the avoidance of doubt, in addition to complying with any pre-clearance requirements under the Policy, for 90 days following the Separation Date, Employee will inform Yukio Morikubo of any transaction involving Company equity for which a Form 4 is required to be filed under federal securities laws.  Employee will provide such notification no later than the date on which the transaction is initiated and provide sufficient detail for the Company to file a complete and compliant Form 4 with respect to the transaction.

Employee specifically acknowledges and agrees that the above payments are in exchange for Employee entering into this Agreement.  Employee will not at any time seek additional consideration in any form from the Company except as expressly set forth in this Agreement.  Employee specifically acknowledges and agrees that the Company has made no representations to him regarding the tax consequences of any amounts received by Employee or for Employee’s benefit pursuant to this Agreement.  Employee agrees to pay all taxes and/or tax assessments due to be paid by Employee, and to indemnify the Company for any claims, costs and/or penalties caused by Employee’s failure to pay such taxes and/or tax assessments.  

	
3.
	
Subject to the exceptions set forth in Paragraph 6 below, Employee represents that he has not filed, and will not file, any complaints, lawsuits, administrative complaints or charges arising from or relating to Employee’s employment with, or termination from, the Company, and agrees that he will not initiate, assist or encourage any such actions, except as required by law.  Employee further agrees that if a commission, agency, or court assumes jurisdiction of any such action against the Company or any Company Releasee (as defined below) on behalf of Employee he will request the commission, agency or court to withdraw from the matter.  This clause does not prohibit Employee from enforcing the terms of this Agreement.

4.Subject to the exceptions set forth in Paragraph 6 below, Employee acknowledges that as an employee of the Company it has been Employee’s obligation to advise the Company completely and candidly of all facts of which Employee is aware that constitute or might constitute violations of the Company’s ethical standards or legal or regulatory obligations.  Employee represents and warrants that Employee is not aware of any such facts or that Employee has previously advised the Company about any such facts.  Employee further agrees to advise the Company in the future of all such facts that come to Employee’s attention.

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5.Subject to the exceptions set forth in Paragraph 6 below, Employee agrees to give written notice immediately to Yukio Morikubo if Employee is requested or required pursuant to court order, judicial process or regulatory authority to reveal any information specified in this Agreement prior to providing this information.  However, Employee is not required to provide the Company with such notice as set forth in Paragraph 6 or if the court order, judicial process or regulatory authority prohibits Employee from doing so.

6.Employee understands that nothing in this Agreement shall in any way limit or prohibit Employee from engaging for a lawful purpose in any Protected Activity.  For purposes of this Agreement, “Protected Activity” shall mean filing a charge or complaint, or otherwise communicating, cooperating, or participating with, any state, federal, or other governmental agency, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, and the National Labor Relations Board.  Notwithstanding any restrictions set forth in this Agreement, Employee understands that he is not required to obtain authorization from the Company prior to disclosing information to, or communicating with, such agencies, nor is Employee obligated to advise the Company as to any such disclosures or communications.  Notwithstanding, in making any such disclosures or communications, Employee agrees to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company confidential information under the PIIA to any parties other than the relevant government agencies.  Employee further understands that “Protected Activity” does not include his disclosure of any Company attorney-client privileged communications, and that any such disclosure without the Company’s written consent shall constitute a material breach of this Agreement. In addition, pursuant to the Defend Trade Secrets Act of 2016, Employee is notified that an individual will not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (i) is made in confidence to a federal, state, or local government official (directly or indirectly) or to an attorney solely for the purpose of reporting or investigating a suspected violation of law, or (ii) is made in a complaint or other document filed in a lawsuit or other proceeding, if (and only if) such filing is made under seal.  In addition, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the individual’s attorney and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.

7.Employee agrees to release the Company, its Board of Directors, officers, employees, agents and assigns (the “Company Releasees”), from any and all claims, charges, complaints, causes of action or demands of whatever kind or nature that Employee now has or has ever had against the Company, whether known or unknown, arising from or relating to Employee’s employment with or discharge from the Company.  This release includes but is not limited to: wrongful or tortious termination; constructive discharge; implied or express employment contracts and/or estoppel; discrimination and/or retaliation under any federal, state or local statute or regulation, specifically including any claims Employee may have under the Fair Labor Standards Act, the Americans with Disabilities Act, 42 U.S.C. § 12101, et seq., Title VII of the Civil Rights Act of 1964, 42 U..S.C. § 2000e, et seq., as amended, the Genetic Information Nondiscrimination Act of 2008; the Age Discrimination in Employment Act, as amended by the Older Workers Benefit Protection Act, 29 U.S.C. § 621, et seq., Section 1981 of U.S.C. Title 42, the Equal Pay Act, the Family and Medical Leave Act, the Corporate and Criminal Fraud Accountability Act of 2002, 18 U.S.C. § 1514A, also known as the Sarbanes-Oxley Act, the Rehabilitation Act of 1973, 29 U.S.C. § 703, et seq., Executive Orders 11246 or 11141, the Employee Retirement Income Security Act of 1974, 29 U.S.C. § 1001, et seq., the Worker Adjustment and Retraining Notification Act, 29 U.S.C. § 2101, et seq., and COBRA, 29 U.S.C. 1161, et seq.; the Washington State Minimum Wage Act,  

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the Older Workers Benefit Protection Act, the Washington State Family Leave Act, the Washington State Family Care Act, the Washington State Law Against Discrimination, and the Washington State Industrial Welfare Act; The California Labor Code, California Government Code, the California Fair Employment and Housing Act, and any claims brought under any federal or state statute or regulation for non-payment of wages or other compensation, or other state, local, or common law, expense reimbursements and/or bonuses due after March 31, 2017, stock grants or stock options; and libel, slander, or breach of contract other than the breach of this Agreement. This release specifically excludes claims, charges, complaints, causes of action or demand that post-date March 31, 2017 or the Effective Date of this Agreement, whichever is later, and that are based on factual allegations that do not arise from or relate to Employee’s present employment with or termination from the Company.   

8.Subject to the exceptions set forth in Paragraph 6 above, Employee agrees that he will keep the terms and amount of this Agreement completely confidential, and that he will not hereafter disclose such information to anyone except his spouse or current significant other, his attorneys and their current law firm employees, his accountant, or as may be required by law, court order or in proceedings relating to the parties’ rights or obligations under this Agreement. Employee agrees to provide reasonable written notice to the Company in the event that a person or entity not a party hereto attempts to compel from him the production of this Agreement or the contents thereof, so that the Company may contest such disclosure at its discretion.  Notwithstanding anything in this Agreement, this confidentiality provision and those in Paragraph 9 below do not prevent Employee from providing information in response to valid and enforceable subpoenas or otherwise required by law or regulation, from providing information necessary for preparation and filing of any income tax return, or from using this Agreement to enforce its terms.  

9.Employee acknowledges and affirms that the terms and conditions of his Employment Agreement (including Exhibit A – the Proprietary Information and Inventions Agreement (the “PIIA”) that survive the employment relationship, including but not limited to Employee’s continuing confidentiality, non-competition and non-solicitation and arbitration obligations, survive and are not affected by this Separation and Release of Claims Agreement.  Employee’s rights to stock options are governed by the applicable agreements and Company plans. Disputes under this Agreement are subject to the arbitration provisions of the Employment Agreement. 

10.Employee represents that he has returned to the Company all property belonging to the Company, including but not limited to documents, corporate cards, access cards, office keys, office equipment, laptop and desktop computers, cell phones and other wireless devices, thumb drives, zip drives and all other media storage devices. 

11.Employee will direct all employment verification inquires to the Company’s VP of People, Environment and Culture, Jenny Armstrong-Owen.  In response to inquiries regarding Employee’s employment with the Company, the Company by and through its speaking agent(s) agrees to provide date of hire, title, and end date, and to confirm rate of pay if already known by the inquirer. 

12.If any provision of this Agreement or compliance by Employee or the Company with any provision of this Agreement constitutes a violation of any law, or is or becomes unenforceable or void, then such provision, to the extent only that it is in violation of law, unenforceable or void, will be deemed modified to the extent necessary so that it is no longer in violation of law, unenforceable or void, and such provision will be enforced to the fullest extent permitted by law. If such modification is not possible, said provision, to the extent that it is in violation of law, unenforceable or void, will be deemed severable from the remaining provisions of this Agreement, 

4

 

which provisions will remain binding on both Employee and the Company.  This Agreement is governed by the laws of the state of Washington. 

13.Employee agrees that if Employee challenges this Agreement, files any claims against the Company arising from or relating to Employee’s employment with, or termination from, the Company, excluding any claim challenging the validity of Employee’s waiver of rights under the Age Discrimination in Employment Act, or otherwise fails to abide by the terms of this Agreement, (a) Employee will return all monies and benefits received by Employee from the Company pursuant to this Agreement and (b) the Company may elect, at its option and without waiver of any other rights or remedies it may have, not to pay or provide any unpaid monies or benefits. In the event that Employee challenges the validity of his waiver of rights under the Age Discrimination in Employment Act, he agrees that the Company may recover money and benefits paid under this Agreement if Employee’s challenge and subsequent Age Discrimination in Employment Act claim are successful and he obtains a monetary award.

14.Employee specifically agrees and acknowledges that:  (a) Employee’s waiver of rights under this Agreement is knowing and voluntary as required under the Older Workers Benefit Protection Act; (b) Employee understands the terms of this Agreement; (c) Employee has been advised in writing by the Company to consult with an attorney prior to executing this Agreement; (d) the Company has given Employee a period of up to twenty one (21) days within which to consider this Agreement, that if Employee executes this Agreement within such period Employee waives the remainder of the period, and that modifications to this Agreement during such period, whether material or immaterial, do not restart the running of such period; (e) following Employee’s execution of this Agreement, Employee has seven (7) days in which to revoke Employee’s agreement to this Agreement and that, if Employee chooses not to so revoke, the Agreement shall then become effective and enforceable and the payment and extension of benefits listed above shall then be made to Employee in accordance with the terms of this Agreement; and (f) nothing in this Agreement shall be construed to prohibit Employee from filing a charge or complaint, including a challenge to the validity of the waiver provision of this Agreement, with the Equal Employment Opportunity Commission or participating in any investigation conducted by the Equal Employment Opportunity Commission.  To cancel this Agreement, Employee understands that Employee must give a written revocation to Company headquarters either by hand delivery or certified mail within the seven (7)-day period.  If Employee revokes the Agreement, it will not become effective or enforceable and Employee will not be entitled to any of the benefits set forth in this Agreement.

15.The Parties understand, covenant, and agree that this Agreement, together with the PIIA and the Equity Documents (except as amended herein), constitutes the entire agreement relating to the matters stated herein, that there are no other agreements, covenants, promises, or arrangements between Employee and Company relating to the matters covered by this Agreement, that the terms and conditions of this Agreement cancel and supersede any prior agreements, promises, representations or understandings that may have existed between Employee and Company with respect to all matters covered by this Agreement, that no other promise or inducement has been offered to either party except as set forth herein, and that this Agreement is binding upon all parties, and their respective heirs, executors, administrators, successors and assigns.  Notwithstanding the foregoing, all of Employee’s post-termination obligations remain in full force and effect, except that such post-termination obligations shall be subject to the exceptions set forth in Paragraph 6 of this Agreement.

16.This Agreement may be executed via facsimile and/or PDF and in one or more counterparts, each of which shall be deemed an original, but all of which together constitute one and the same instrument, binding on the parties.

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17.EMPLOYEE ACKNOWLEDGES AND AGREES THAT HE HAS CAREFULLY READ AND VOLUNTARILY SIGNED THIS AGREEMENT, THAT HE HAS HAD AN OPPORTUNITY TO CONSULT WITH AN ATTORNEY OF HIS CHOICE, AND THAT HE SIGNS THIS AGREEMENT WITH THE INTENT OF RELEASING IMPINJ INC. AND ITS OFFICERS, DIRECTORS, EMPLOYEES AND AGENTS FROM ANY AND ALL CLAIMS.

ACCEPTED AND AGREED TO:

Impinj Inc.

 

 

/s/ Chris Diorio/s/ Evan Fein

By: Chris DiorioEvan Fein

Its: CEO

 

 

March 30, 2018March 30, 2018

DateDate

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