Document:

EX-10.1

   

  Exhibit 10.1

  CONSENT AND SIXTH AMENDMENT TO 
LOAN AND SECURITY AGREEMENT

  THIS CONSENT AND SIXTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) dated as of December 15, 2022, is entered into by umb bank, n.a. (together with its successors and assigns, “Lender”), SCOTT’S LIQUID GOLD-INC., a Colorado corporation (“SLG”), SLG CHEMICALS, INC., a Colorado corporation (“Chemicals”), and NEOTERIC COSMETICS, INC., a Colorado corporation (“NC”, and together with SLG and Chemicals, collectively, “Borrowers” and each, a “Borrower”) and each of the undersigned guarantors (collectively “Guarantors” and together with Borrowers, “Obligors”), with reference to the following facts:

  RECITALS

  A.	Lender and Borrowers are parties to a Loan and Security Agreement dated as of July 1, 2020 (as amended, supplemented, replaced, restated or otherwise modified, the “Loan Agreement”), pursuant to which Lender has provided certain credit facilities to Borrowers.

  B.	Borrowers have requested that Lender consent to the entry by NC and SLG into the Asset Purchase Agreement, dated as of December 15, 2022 (the “Prell APA”), with AFAM Concept, Inc. (“Prell Buyer”) and the sale of the Purchased Assets (as defined therein) (the “Prell Assets”).

  C. 	Lender is willing to provide such accommodations to the Borrowers on the terms and conditions set forth below.

  NOW, THEREFORE, the parties hereby agree as follows:

  1.Defined Terms.  Any and all initially capitalized terms used in this Amendment (including, without limitation, in the Recitals to this Amendment) without definition shall have the respective meanings assigned thereto in the Loan Agreement.  The following defined terms in Section 1.1 of the Loan Agreement are hereby added or amended and restated in their entirety, as appropriate, to read as follows:

  “‘Borrowing Base’ means, as of any date of determination, an amount equal to:

  (a)	85% (or such lesser percentage as Lender may in its Permitted Discretion determine from time to time) of the Net Amount of Eligible Accounts; plus

  (b)	the least of:

  (i)	50% minus the Inventory Advance Reduction Amount (or such lesser percentage as Lender may in its Permitted Discretion determine from time to time) of the Net Amount of Eligible Inventory;

  (ii)	85% minus the Inventory Advance Reduction Amount (or such lesser percentage as Lender may in its Permitted Discretion determine from time to time) of the Net Orderly Liquidation Value of Eligible Inventory; plus; and

  (iii)	$1,838,000, minus

  [Consent and Sixth Amendment to 

  Loan and Security Agreement]

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  (c)	the sum of all Reserves, including, without limitation, the Prell Sale Reserve.

  Without limiting Lender’s Permitted Discretion to implement other Reserves, Lender shall have the option to institute Reserves with respect to Eligible Accounts in the event that dilution exceeds 5.00% such that the advance rate on such account shall be reduced by 1.00% for each percentage of dilution in excess of 5.00%.

  ‘Prell APA’ means the Asset Purchase Agreement, dated as of December 15, 2022, among NC, SLG and AFAM Concept, Inc.

  ‘Prell Royalty Payments’ means all Royalty Payments (as defined in the Prell APA) paid by AFAM Concept, Inc.

  ‘Prell Sale Reserve” means $339,000 plus the amount of any Prell Royalty Payments.” 

  2.Consent to Sale.  Lender is willing to consent to sale of the Prell Assets on the condition that (a) 100% of the net proceeds from the sale of the Prell Assets (including, without limitation, all Prell Royalty Payments) (the “Prell Net Proceeds”) are paid to Lender, (b) the proceeds are used to pay down the Revolving Loans (which amounts may be readvanced on the terms and conditions set forth in the Loan Agreement, as amended hereby).

  3.Third Party Deliverables.   Upon Lender’s receipt of a countersigned copy of this Amendment, Lender will execute and deliver the attached Consent to Sale Free and Clear of Liens in favor of Buyer.

  4.Renewal and Extension of Security Interests and Liens.  Each Obligor hereby (a) renews and affirms the Liens created and granted in the Loan Documents, and (b) agrees that this Amendment shall in no manner affect or impair the Liens securing the Obligations, and that such Liens shall not in any manner be waived, the purposes of this Amendment being to modify the Loan Agreement as herein provided, and to carry forward all Liens securing the same, which are acknowledged by such Obligor to be valid and subsisting.

  5.Integration.  This Amendment, and the documents referred to herein constitute the entire agreement of the parties in connection with the subject matter hereof and cannot be changed or terminated orally.  All prior agreements, understandings, representations, warranties and negotiations regarding the subject matter hereof, if any, are merged into this Amendment.

  6.Counterparts.  This Amendment may be executed in multiple counterparts, each of which when so executed and delivered shall be deemed an original, and all of which, taken together, shall constitute but one and the same agreement.  The parties agree that the electronic signature of a party to this Amendment shall be as valid as an original manually executed signature of such party and shall be effective to bind such party to this Agreement.  

  7.Release.  Each of the Obligors (for purposes of this Section, each a “Releasing Party” and collectively, the “Releasing Parties”) releases, acquits and forever discharges Lender, UMB Financial Corporation and their respective past, present and future directors, officers, employees, agents, attorneys, affiliates, successors, administrators and assigns (collectively, the “Released Parties”) of and from any and all claims, actions, causes of action, demands, rights, damages, costs, loss of service, expenses and compensation whatsoever, heretofore or hereafter arising from any events or occurrences, or anything done, omitted to be done, or 

  [Consent and Sixth Amendment to 

  Loan and Security Agreement]

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  allowed to be done by any of the Released Parties on or before the date of execution of this Amendment, WHICH DO OR MAY EXIST, WHETHER KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, FORESEEN OR UNFORESEEN (collectively, the “Released Matters”).  In furtherance of this general release, Releasing Parties each acknowledge and waive the benefits of California Civil Code Section 1542 (and all similar ordinances and statutory, regulatory, or judicially created laws or rules of any other jurisdiction), which provides:

  “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.”

  8.Acknowledgment of Guarantor.  Each Guarantor hereby acknowledges and agrees to the terms and conditions of this Amendment, acknowledges and reaffirms its/his/her obligations owing to Lender under its/his/her Guaranty, and each other Loan Document to which such Guarantor is a party, and agrees that the Guaranty and other Loan Documents are and shall remain in full force and effect.  Although each Guarantor has been informed of the matters set forth herein and has acknowledged and agreed to the same, each Guarantor understands and acknowledges that Lender has no obligation to inform Guarantors of such matters in the future or to seek any Guarantor’s acknowledgement or agreement to future amendments, and nothing herein shall create such a duty.

  9.Costs and Expenses.  Borrowers agree to pay upon demand all of Lender’s expenses, including without limitation reasonable, reasonably documented attorneys’ fees, charges and disbursements of outside counsel for Lender, incurred in connection with the preparation, negotiation, review, analysis, administration, enforcement or modification of, and collection and other litigation relating to, or arising out of the Loan Agreement or any other Loan Document, or any amounts owing thereunder.  Lender may pay someone else to help collect such amounts and to enforce the Loan Agreement or any other Loan Document, and Borrowers will pay that amount.  This includes, subject to any limits under applicable law, reasonable, reasonably documented Lender’s attorneys’ fees and legal expenses, whether or not there is a lawsuit, including attorneys’ fees for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), foreclosure costs, appeals, and any anticipated post-judgment collection services.  Borrowers will pay any court costs, in addition to all other sums provided by law.

  10.Governing Law.  This Amendment, the interpretation and construction of this Amendment and any provision of this Amendment and of any issue relating to the transactions contemplated by this Amendment shall be governed by the laws of the State of CALIFORNIA, not including conflicts of law rules.  

  11.Waiver of Jury Trial.  To the fullest extent permitted by applicable law, the parties hereto each hereby waives the right to trial by jury in any action, suit, counterclaim, or proceeding arising out of or related to this Amendment.

  [Consent and Sixth Amendment to 

  Loan and Security Agreement]

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  12.Further Assurances.  Borrowers agree to execute and deliver such other agreements, documents and instruments and take such other actions as Lender may reasonably request in connection with the transactions contemplated by this Amendment.

  13.ENTIRE AGREEMENT.  THIS AMENDMENT, THE LOAN AGREEMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED AND DELIVERED IN CONNECTION WITH AND PURSUANT TO THIS AMENDMENT AND THE LOAN AGREEMENT REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

  [Signature Page Follows]

  [Consent and Sixth Amendment to 

  Loan and Security Agreement]

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  IN WITNESS WHEREOF, Obligors and Lender have executed this Amendment by their respective duly authorized officers as of the date first above written.

  		
	 
	LENDER: 

UMB BANK, N.A.
By: /s/ Phillip Goessler
Name:  Phillip Goessler
Title:    Senior Vice President

	 
	BORROWERS:

SCOTT’S LIQUID GOLD-INC.
By: /s/ David Arndt
Name:  David Arndt
Title:  Chief Financial Officer

	 
	SLG CHEMICALS, INC.
By:  /s/ David Arndt
Name:  David Arndt
Title:  Chief Financial Officer

	 
	NEOTERIC COSMETICS, INC.
By:  /s/ David Arndt
Name:  David Arndt
Title:  Chief Financial Officer

   

   

  [Consent and Sixth Amendment to 

  Loan and Security Agreement]

   

  

   

   

  		
	 
	GUARANTORS:

SLG TOUCH-A-LITE, INC.
By:  /s/ David Arndt
Name:  David Arndt
Title:  Chief Financial Officer

   

   

  [Consent and Sixth Amendment to 

  Loan and Security Agreement]

  -6-SUMMIT THERAPEUTICS INC. FORM S-3

 

EX-4.1

 

 

THE TERMS AND CONDITIONS OF THE RIGHTS OFFERING
ARE SET FORTH IN THE COMPANY’S PROSPECTUS DATED [_____], (THE “PROSPECTUS”) AND ARE INCORPORATED HEREIN BY REFERENCE.
COPIES OF THE PROSPECTUS ARE AVAILABLE UPON REQUEST FROM BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC., THE SUBSCRIPTION AGENT, BY CALLING
(855) 793-5068.

SUMMIT THERAPEUTICS INC.

Incorporated under the laws of the State of Delaware

NON-TRANSFERABLE SUBSCRIPTION RIGHTS CERTIFICATE

Evidencing Non-Transferable Subscription Rights
to Purchase Shares of

Common Stock, Par Value $0.01 per share, of Summit Therapeutics Inc.

Subscription Price: To be determined as set forth below

THE SUBSCRIPTION RIGHTS WILL EXPIRE IF NOT EXERCISED ON OR BEFORE

5:00 P.M., EASTERN TIME, ON [________] (THE “EXPIRATION DATE”)

REGISTERED OWNER:

THIS CERTIFIES THAT the registered owner whose
name is inscribed hereon is the owner of certain non-transferable subscription rights (each, a “Subscription Right”). The
Subscription Right entitles the holder thereof to subscribe for and purchase shares of common stock, par value $0.01 per share (the “Common
Stock”), of Summit Therapeutics Inc., a Delaware corporation (the “Company”), at a subscription price per full share
equal to the lesser of (i) $1.05 per share (the “Initial Price”) and (ii) the volume weighted-average price of the Common
Stock for the five (5) consecutive trading days through and including the Expiration Date (the “Alternate Price”), pursuant
to a rights offering (the “Rights Offering”), on the terms and subject to the conditions set forth in the Prospectus dated
[______] (the “Prospectus”).

Each stockholder will receive one Subscription
Right for each share of Common Stock owned as of 4:00 p.m., Eastern Time, on [______] (the “Record Date”) and each Subscription
Right will entitle its holder to purchase [____] shares of Common Stock at the Initial Price per full share.

The Subscription Rights represented by this
Non-Transferable Subscription Rights Certificate may be exercised by completing Form 1 and any other appropriate forms on the reverse
side hereof and by returning the full payment of the subscription price for each share of Common Stock in accordance with the instructions
contained herein.

This Non-Transferable Subscription Rights Certificate
is not valid unless countersigned by Broadridge Corporate Issuer Solutions, Inc., the Subscription Agent. Witness the seal of Summit Therapeutics
Inc. and the signatures of its duly authorized officers.

DATED: [_____]

	
     ____________________________

     
	 	
     

     

	Robert W. Duggan, Chief Executive Officer	 	 

 

DELIVERY OPTIONS FOR NON-TRANSFERABLE SUBSCRIPTION
RIGHTS CERTIFICATE

Delivery other than in the manner or to the
addresses listed below will not constitute valid delivery.

 

	If delivering by hand or overnight courier:	 	If delivering by first class mail:
	 	 	 
	Broadridge Corporate Issuer Solutions, Inc.

Attn: BCIS IWS

51 Mercedes Way

Edgewood, NY 11717	 	Broadridge Corporate Issuer Solutions, Inc.

Attn: BCIS Re-Organization Dept.

P.O. Box 1317

Brentwood, NY 11717-0718

 

    	 	 

    	 

    

PLEASE PRINT ALL INFORMATION CLEARLY AND LEGIBLY.

SECTION 1 – EXERCISE OF SUBSCRIPTION
RIGHTS

To subscribe for shares of Common Stock pursuant
to your Subscription Right, please complete lines (a) and (b) and sign in part (c). If you do not indicate the number of Subscription
Rights being exercised, or if you do not forward the full subscription payment for the number of Subscription Rights that you indicate
are being exercised, then you will be deemed to have exercised the maximum number of Subscription Rights that may be exercised with the
aggregate subscription payment you delivered to the Subscription Agent. Fractional shares of our Common Stock resulting from the exercise
of the Subscription Rights will be eliminated by rounding down to the nearest whole share, with the total subscription payment being adjusted
accordingly. Any excess subscription payments received by the Subscription Agent will be returned, without interest, as soon as practicable.

(a)           EXERCISE
OF SUBSCRIPTION RIGHT:

	 	(i)	Basic Subscription Right

 

	I exercise	
    ____________

     
	x	[_______]	=	
     ______________________

     
	x	$1.05	=	
    $

	 	(No. of shares

owned)	x	(Initial ratio)	=	
    (No. of Basic Subscription

    Shares Subscribed For)
	x	(Initial Price)	 	(Amount Enclosed)

 

	 	(ii)	Over-Subscription Right: If you fully exercise your Basic Subscription Right, above, and wish to subscribe for additional shares, you may exercise your Over-Subscription Right below.

 

	I exercise	
     ____________________

     
	x	 	$1.05	=	
    $

	 	(No. of Over-Subscription

Shares

Subscribed For)	x	 	(Initial

Price)	=	(Amount Enclosed)

 

(b)           PAYMENT:

	 	Amount Enclosed	 
	Basic Subscription

Right:	
    $
	☐    Certified check drawn on a U.S. bank, or postal or express money order payable to Broadridge Corporate Issuer Solutions, Inc., as Subscription Agent.
	 	 	 
	Over-Subscription

Right:	
    $
	☐    Wire transfer directly to the escrow account maintained by Broadridge Corporate Issuer Solutions, Inc., as Subscription Agent.
	 	 	 
	Total Amount

Enclosed	
    $
	 

 

    	 	 

    	 

    

Method of Payment. All payments must be made
in U.S. dollars by wire transfer of funds, U.S. Postal money order or certified check drawn upon a U.S. bank payable to “Broadridge
Corporate Issuer Solutions, Inc. (acting as Subscription Agent for Summit Therapeutics Inc.)”. The Subscription Agent will not accept
payment by any other means, except as agreed by the Company in writing.

 

(c)            SIGNATURE(S):

TO SUBSCRIBE: I acknowledge that I have received
the Prospectus for the Rights Offering and I hereby irrevocably subscribe for the number of shares indicated above on the terms and conditions
specified in the Prospectus. I hereby agree that if I fail to pay for the shares of Common Stock for which I have subscribed, Summit Therapeutics
Inc. may exercise its legal remedies against me.

This form must be signed by the registered
holder(s) exactly as their name(s) appear(s) on the certificate(s) or book entry or by person(s) authorized to sign on behalf of the registered
holder(s) by documents transmitted herewith.

	
     

     
	 		 	
     

     

	Signature(s) of Subscriber(s)	 	Date	 	Daytime Telephone Number(s)

 

If signature is by trustee(s), executor(s),
administrator(s), guardian(s), attorney(s)-in-fact, agent(s), officer(s) of a corporation or another acting in a fiduciary or representative
capacity, please provide the following information (please print). See the instructions.

	 	 	
     

     
	 	
     

     
	 	
     

	Name(s)	 	Full Title	 	Taxpayer ID # or Social Security #	 	Date

 

SECTION 2 – SPECIAL ISSUANCE OR DELIVERY
INSTRUCTIONS FOR SUBSCRIPTION RIGHTS HOLDERS

	(a) To be completed ONLY if the book-entry representing the Common Stock is to be issued in a name other than that of the registered holder. (See the Instructions.) DO NOT FORGET TO COMPLETE THE GUARANTEE OF SIGNATURE(S) SECTION BELOW.	 	
    (b) To be completed ONLY if the book-entry representing the Common Stock
    is to be issued to an address other than that shown on the front of this certificate. (See the Instructions.)

    DO NOT FORGET TO COMPLETE THE GUARANTEE OF SIGNATURE(S) SECTION BELOW.

 

 

	Print Full Name: 	 ________________________	Print Full Name:	  ________________________
	Print Full Address:	  ________________________	Print Full Address:	  ________________________
	Taxpayer ID # or Social Security #:	  ________________________	Taxpayer ID # or Social Security #:	  ________________________

 

 

    	 	 

    	 

    

 

SIGNATURE GUARANTEE

This must be completed if you have completed any portion of Section 2.

	Signature Guaranteed:	 
	 	(Name of Bank or Form)
	 	 
	 ____________________________	 
	By: 	 _____________________________
	 	(Signature of Officer)

IMPORTANT: The signature(s) should be guaranteed
by an eligible guarantor institution (bank, stock broker, savings & loan association or credit union) with membership in an approved
signature guarantee medallion program pursuant to Securities and Exchange Commission Rule 17Ad-15.

FOR INSTRUCTIONS ON THE USE OF NON-TRANSFERABLE
SUBSCRIPTION RIGHTS CERTIFICATES, CONSULT BROADRIDGE CORPORATE ISSUER SOLUTIONS, INC., THE SUBSCRIPTION AGENT, AT (855) 793-5068 (TOLL-FREE).
THE RIGHTS OFFERING EXPIRES AT 5:00 P.M., EASTERN TIME, ON [_______], AND THIS NON-TRANSFERABLE SUBSCRIPTION RIGHTS CERTIFICATE IS VOID
THEREAFTER.

THE RIGHTS OFFERING HAS BEEN REGISTERED OR
QUALIFIED OR IS BELIEVED TO BE EXEMPT FROM REGISTRATION OR QUALIFICATION ONLY UNDER THE FEDERAL LAWS OF THE UNITED STATES AND THE LAWS
OF THE STATES IN THE UNITED STATES. RESIDENTS OF OTHER JURISDICTIONS MAY NOT PURCHASE THE SECURITIES OFFERED HEREBY UNLESS THEY CERTIFY
THAT THEIR PURCHASES OF SUCH SECURITIES ARE EFFECTED IN ACCORDANCE WITH THE APPLICABLE LAWS OF SUCH JURISDICTIONS.

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