Document:

Gratitude Health, Inc. 8-K

Exhibit 10.4

 

PUT OPTION AGREEMENT

 

This
Put Option Agreement (this “Agreement”), is made and entered as of April 20, 2020, by and between Gratitude
Health, Inc., a Nevada
corporation (the “Company”) and Alpha Capital Anstalt (the “Stockholder”).

 

WHEREAS,
as of the date hereof, the Stockholder owns, on a fully diluted basis but subject to such Beneficial Ownership Limitation restrictions
on conversion, exercise or exchange (as defined in Section 9(c) of the Warrant (defined below)), an aggregate of 195,805,692 shares
of the Company’s Common Stock (the “Shares” or “Stock”); and

  

WHEREAS,
the Company anticipates effectuating a 31.993:1 reverse stock split as soon as practicable after the date hereof, which, once
consummated, would result in the Stockholder owning an aggregate of 932,898 shares of Common Stock (the “Stockholder Shares”)
and a warrant to purchase up to an additional 5,187,319 shares of the Company’s Common Stock, as more fully detailed in
that certain Warrant issued to the Stockholder (the “Warrant”), all the foregoing Shares and Warrant subject to the
Beneficial Ownership Limitation; and

 

WHEREAS,
the Stockholder desires to have the right to sell to the Company up to all of the Stockholder
Shares, and the Company desires to grant such right to the Stockholder, pursuant to the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual and dependent covenants hereinafter set forth, the parties agree as follows:

 

1.   Sale of Stockholder Shares. Subject to any applicable state and federal securities laws, the Stockholder may sell or otherwise dispose of the Stockholder Shares.  

 

2. Grant of Put Option.

 

(a)    Right to Sell. In the event that the Stockholder has not generated an aggregate $1,300,000 in gross proceeds from the sale of the Stockholder Shares (the “Total Investment”) by the second anniversary of the date of this Agreement (such 24 month period, the “Market Period”), then the Stockholder shall have the right, but not the obligation, to cause the Company to purchase up to an amount of the Stockholder Shares equal to the difference between the Total Investment and the net proceeds actually realized by the Stockholder (the “Market Period Proceeds”) during the Market Period at the Put Purchase Price (as defined in Section 3 of this Agreement) (the “Put Right”). The Put Right granted hereunder to the Stockholder shall expire fourteen (14) days from end of the Market Period (the “Put Expiration Date”).

 

(b)    Procedures.

 

(i)    If the Stockholder desires to sell the Stockholder Shares pursuant to the Put Right contained in Section 2(a) on or before the Put Expiration Date, then the Stockholder shall deliver to the Company a written, unconditional and irrevocable notice (the “Put Exercise Notice”) exercising the Put Right and specifying the number of Shares to be sold (the “Put Shares”) by the Stockholder to the Company.

 

Page 1 of 6

 

 

(ii)    By delivering the Put Exercise Notice, the Stockholder represents and warrants to the Company that (A) the Stockholder has full right, title and interest in and to the Stockholder Shares, (B) the Stockholder has all the necessary power and authority and has taken all necessary action to sell to the Company such Stockholder Shares as contemplated by this Section 2, and (C) the Stockholder Shares are free and clear of any and all mortgages, pledges, security interests, options, rights of first offer, encumbrances or other restrictions or limitations of any nature whatsoever created by Stockholder other than those arising as a result of or under the terms of this Agreement.

 

(iii)    Subject to Section 2(c) below, the closing of any sale of Stockholder Shares pursuant to this Section 2 shall take place no later than ten (10) business days following receipt by the Company of the Put Exercise Notice. The Company shall give the Stockholder at least forty-eight (48) hours’ written notice of the date of closing (the “Put Right Closing Date”).

 

 (iv)    In the event the Stockholder does not deliver a Put Exercise Notice to the Company on or before the Put Expiration Date, any rights provided to Stockholder to require the Company to purchase the Shares pursuant to this Agreement shall terminate and be of no further force or effect.

 

(c)    Consummation of Sale. The Company will pay the Put Purchase Price for the Shares on the Put Right Closing Date by issuing a promissory note to the Stockholder, a form of  which is attached as Exhibit A.

 

(d)    Cooperation. The Company and the Stockholder each shall take all actions as may be reasonably necessary to consummate the sale contemplated by this Section 2, including, without limitation, entering into agreements and delivering certificates and instruments and consents as may be deemed necessary or appropriate.

 

(e)    Closing. At the closing of any sale and purchase pursuant to this Section 2, the Stockholder shall deliver to the Company a certificate or certificates representing the Stockholder Shares to be sold (if any), accompanied by stock powers and all necessary stock transfer taxes paid and stamps affixed, if necessary, against receipt of the Put Purchase Price.

 

3.    Put Purchase Price. In the event Stockholder exercises the Put Right hereunder, the purchase price per share at which the Company shall be required to purchase the Put Shares (the “Put Purchase Price”) shall be calculated by (a) subtracting the aggregate Market Period Proceeds from Total Investment prior to the Put Expiration Date and (b) dividing the difference by the number of Stockholder Shares held by Stockholder on record as of the Put Closing Date:

 

Total
   Investment less Market Period Proceeds

 

Stockholder Shares at the Put Right Closing Date

 

* 194,851,030 pre-reverse split

 

Page 2 of 6

 

 

4. Notices.  All notices, demands, waivers, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice.  Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: (i) if to the Company, to: Home Bistro, Inc., 4014 Chase Avenue, #212, Miami Beach, FL 33140, Attn: Zalmi Duchman, CEO, with a copy by email only to: Faegre Drinker Biddle & Reath LLP 1177 Avenue of the Americas, New York, NY 10036, Attn: Peter J. Gennuso, Esq., peter.gennuso@faegredrinker.com, and (ii) if to the Stockholder, to: Lettstrasse 32, 9490 Vaduz, Liechtenstein, Fax: 011-423-2323196, with an additional copy by fax only to (which shall not constitute notice): Grushko & Mittman, P.C., 515 Rockaway Avenue, Valley Stream, New York 11581, fax: (212) 697-3575.

 

5.    Entire Agreement. This Agreement constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter.

 

6.    Successor and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. However, neither this Agreement nor any of the rights of the parties hereunder may otherwise be transferred or assigned by any party hereto, except (a) that if the Company shall merge or consolidate with or into, or sell or otherwise transfer substantially all its assets to, another company which assumes the Company’s obligations under this Agreement, the Company may assign its rights hereunder to that company, or (b) the Shares are transferred by Stockholder by will or by the laws of intestate succession, to Stockholder’s executors, administrators, testamentary trustees, legatees or beneficiaries. Any attempted transfer or assignment in violation of this Section 5 shall be void.

 

7.    No Third-Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other person any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Agreement.

 

8.    Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

Page 3 of 6

 

 

9.    Amendment and Modification; Waiver. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any rights, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

10.    Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

 

11.    Governing Law; Submission to Jurisdiction.  All disputes arising under this Agreement shall be governed by and interpreted in accordance with the laws of the State of Nevada, without regard to principles of conflict of laws.  Any action brought by either party against the other concerning the transactions contemplated by this Agreement must be brought only in the civil or state courts of New York or in the federal courts located in the State and county of New York.  Both parties and the individual signing this Agreement on behalf of the Company agree to submit to the jurisdiction of such courts.  The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs.  In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or unenforceability of any other provision of this Agreement. Nothing contained herein shall be deemed or operate to preclude the Stockholder from bringing suit or taking other legal action against the Company in any other jurisdiction to collect on the Company’s obligations to the Stockholder, to realize on any collateral or any other security for such obligations, or to enforce a judgment or other decision in favor of the Stockholder.  

 

12.    Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which shall together be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

13.    Compliance with Laws and Regulations. The exercise of the Put Option shall be subject to compliance by the Company and the Stockholder with all applicable requirements of law, including federal and state securities laws.

 

14.    No Strict Construction. The parties to this Agreement have participated jointly in the negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties, and no presumption or burden of proof will arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement.

 

Page 4 of 6

 

 

15.     Survival.  The representations and warranties of the Company contained in this Agreement shall survive until the twenty-four (24) month anniversary of the Put Expiration Date.

 

16.     Execution.  This agreement may be executed in two or more counterparts, some of which may be signed by fewer than all the parties or may contain facsimile copies of pages signed by some of the parties.  Each of those counterparts shall be deemed to be an original copy of this agreement, but all of them together shall constitute one and the same agreement.  This agreement or any counterpart thereof may be delivered by facsimile or other means of electronic transmission and any such executed facsimile copy of PDF copy shall be treated as an original and shall be binding to the same extent as an executed original.

 

******************************************

 

IN WITNESS WHEREOF, the parties hereto have executed this Put Option Agreement on the date first written above.

 

GRATITUDE HEALTH, INC.

 

	By:

	/s/
Zalmi Duchman

	 

	 

	Name:

	Zalmi
Duchman

	 

	 

	Title:

	Chief
Executive Officer

	 

	 

	 

	 

	 

	ALPHA
CAPITAL

	 

	 

	 

	 

	 

	 

	By:

	/s/
                                                                                                                                                           Konrad Ackermann 

	 

	 

	 

	 

	 

	 

	Name:

	Konrad
Ackermann

	 

	 

	 

	 

	 

	 

	Title:

	Director 

	 

	 

 

Page 5 of 6

 

 

EXHIBIT A

 

PUT EXERCISE NOTICE

 

Name of Stockholder: Alpha Capital

 

	
Address:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

	
 

	
 $     1,300,000

	
 

	
Less: Aggregate Proceeds from the sale of Stock

	
 -$                    

	
 

	
  Net Sale Value of Put 

	
 

	
$    

	
 

	
 

	
 

	
Original Shares (post reverse split)*

	
6,090,377

	
 

	
Less: Shares Sold during Put Term

	
 

	
 

	
Number of Shares held by Stockholder subject to this Put Option

	
 

	
 

	
 

	
 

	
 

	
Put Price per Share

	
 

	
 

 

*Original and fully-diluted shares.

 

	
 

	
By:

	
                     

	
 

	
Name:

	
                     

	
 

	
Title:

	
                     

 

Page 6 of 6Exhibit

Exhibit 10.1
THIRD AMENDMENT
TO
LOAN AND SECURITY AGREEMENT

This Third Amendment to Loan and Security Agreement (this “Amendment”) is entered into this 21st day of April, 2020, by and among SILICON VALLEY BANK (“Bank”), and FLUIDIGM CORPORATION, a Delaware corporation (“Borrower”).
RECITALS
A.    Bank and Borrower have entered into that certain Loan and Security Agreement dated as of August 2, 2018 (as may from time to time be further amended, modified, supplemented or restated, including, without limitation, by that certain Default Waiver and First Amendment to Loan and Security Agreement dated as of September 7, 2018, and that certain Second Amendment to Loan and Security Agreement dated as of November 20, 2019, collectively, the “Loan Agreement”).  
B.    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.  
C.    Borrower has requested that Bank amend the Loan Agreement to (i) extend the Revolving Line Maturity Date, and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein.
D.    Bank has agreed to so 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.    Amendments to Loan Agreement.
2.1    All references to “Borrowing Base Report” shall hereinafter be updated to reflect “Borrowing Base Statement.”
2.2    All references to “Compliance Certificate” shall hereinafter be updated to reflect “Compliance Statement.”
2.3    Section 2.3 (Payment of Interest on the Credit Extensions).  Section 2.3(a) of the Loan Agreement hereby is amended and restated in its entirety and replaced with the following:
“(a)    Interest Rate.  Subject to Section 2.4(b), the principal amount outstanding under the Revolving Line shall accrue interest at the greater of (i) a floating per annum rate equal to one-half of one percentage point (0.50%) above the Prime Rate or (ii) a fixed per 

WEST\289776852.4

annum rate equal to five and one quarter percentage points (5.25%) which interest shall be payable monthly in accordance with Section 2.4(d) below.”
2.4    Section 2.5 (Fees).  Sections 2.5(a) and 2.5(c) of the Loan Agreement hereby are amended and restated in their entirety and replaced with the following:
“(a)    Revolving Line Commitment Fee.  A fully earned, non-refundable commitment fee of One Hundred Twelve Thousand Five Hundred Dollars ($112,500) (the “Revolving Line Commitment Fee”) on each of (I) the Effective Date, and with respect to each anniversary of the Effective Date thereafter through the Revolving Maturity Date, (II) the earliest of (a) each such anniversary of the Effective Date, (b) the date on which Borrower terminates this Agreement or (c) the occurrence and continuance of an Event of Default;

(c)    Unused Revolving Line Facility Fee.  Payable quarterly in arrears on the last day of each calendar quarter occurring thereafter prior to the Revolving Line Maturity Date, and on the Revolving Line Maturity Date, a fee (the “Unused Revolving Line Facility Fee”) in an amount equal to three quarters of one percent (0.75%) per annum of the average unused portion of the Revolving Line, as determined by Bank, computed on the basis of a year with the applicable number of days as set forth in Section 2.4(d).  The unused portion of the Revolving Line, for purposes of this calculation, shall be calculated on a calendar year basis and shall equal the difference between (i) the Availability Amount, and (ii) the average for the period of the daily closing balances of the Revolving Line outstanding;”

2.5    Section 3.2 (Conditions Precedent to all Credit Extensions).  Section 3.2 of the Loan Agreement hereby is amended by (i) renumbering Subsections (a), (b), and (c), to now reflect (b), (c), and (d), and (ii) adding new Subsection (a) to read as follows:
“(a)    prior to the first Advance following the Third Amendment Effective Date, Bank shall complete an audit of the Accounts, the Collateral and Borrower’s Books with results satisfactory to Bank in its reasonable business discretion;”

2.6    Section 5.5 (Financial Statements; Financial Condition).  Section 5.5 of the Loan Agreement is hereby amended and restated in its entirety as follows:
“5.5    Financial Statements; Financial Condition.  All consolidated financial statements for Borrower and any of its Subsidiaries delivered to Bank by submission to the Financial Statement Repository or otherwise submitted to Bank fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of operations.  There has not been any material deterioration in Borrower’s consolidated financial condition since the date of the most recent financial statements submitted to the Financial Statement Repository or otherwise submitted to Bank.”
2.7    Section 5.11 (Full Disclosure).  Section 5.11 of the Loan Agreement is hereby amended and restated in its entirety as follows:
“5.11    Full Disclosure.  No written representation, warranty or other statement of Borrower in any report, certificate, or written statement submitted to the Financial Statement Repository or otherwise submitted to Bank, as of the date such representation, warranty, or 

2

other statement was made, taken together with all such written reports, written certificates and written statements submitted to the Financial Statement Repository or otherwise submitted to Bank, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained in the reports, certificates, or written statements not misleading (it being recognized by Bank that the projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results).”
2.8    Section 6.2 (Financial Statements, Reports, Certificates).  Section 6.2 of the Loan Agreement is hereby amended and restated in its entirety as follows:
“6.2    Financial Statements, Reports.  Provide Bank with the following by submitting to the Financial Statement Repository or otherwise submitting to Bank:
(a)    a Borrowing Base Statement (and any schedules related thereto and including any other information requested by Bank with respect to Borrower’s Accounts): (i) no later than Friday of each week when a Streamline Period is not in effect and the principal amount outstanding under the Revolving Line is greater than Zero Dollars ($0.00); (ii) within seven (7) days after the end of each month (provided however that if such seventh day is not a Business Day, then such Borrowing Base Statement shall be delivered on next Business Day) when a Streamline Period is in effect at all times during such month and the principal amount outstanding under the Revolving Line was greater than Zero Dollars ($0.00) at any time during such calendar month; and (iii) within seven (7) days after the end of each fiscal quarter when the principal amount outstanding under the Revolving Line was equal to Zero Dollars ($0.00) at all times during such fiscal quarter;

(b)    (i) Within thirty (30) days after the end of each fiscal quarter when the principal amount outstanding under the Revolving Line was equal to Zero Dollars ($0.00) at all times during such fiscal quarter, and (ii) within thirty (30) days after the end of each month when the principal amount outstanding under the Revolving Line was greater than Zero Dollars ($0.00) at any time during such calendar month, (A) monthly accounts receivable agings, aged by invoice date, (B) monthly accounts payable agings, aged by invoice date (C) monthly reconciliations of accounts receivable agings (aged by invoice date) and general ledger, and (D) monthly perpetual inventory reports for Inventory consisting of finished products valued on a first-in, first-out basis at the lower of cost or market (in accordance with GAAP) or such other inventory reports as are requested by Bank in its good faith business judgment;

(c)    as soon as available, but no later than within forty-five (45) days after the end of each fiscal quarter, a company prepared consolidated balance sheet and income statement covering Borrower’s and each of its Subsidiary’s operations for such period in a form acceptable to Bank (the “Quarterly Financial Statements”); provided, however, notwithstanding the foregoing, the Quarterly Financial Statements for Borrower’s fourth (4th) quarter of each fiscal year, shall be due within ninety (90) days of such fiscal quarter; 

(d)    (i) within forty-five (45) days after the end of each fiscal quarter when the principal amount outstanding under the Revolving Line was equal to Zero Dollars 

3

($0.00) at all times during such fiscal quarter, and (ii) within thirty (30) days after the end of each month when the principal amount outstanding under the Revolving Line was greater than Zero Dollars ($0.00) at any time during such calendar month, and together with the Quarterly Financial Statements when due in accordance with the terms set forth in Section 6.2(d)(i) above, a completed Compliance Statement, confirming that, as of the end of such month, Borrower was in full compliance with all of the terms and conditions of this Agreement and such other information as Bank may reasonably request; 

(e)    within thirty (30) days of the end of each fiscal year of Borrower, and within seven (7) days of any updates or amendments thereto, (A) consolidated annual operating budgets (including income statements, balance sheets and cash flow statements, by quarter) for the then-current fiscal year of Borrower and its Subsidiaries and (B) annual financial projections for the then-current fiscal year (on a quarterly basis), in each case as approved by the Board, together with any related business forecasts used in the preparation of such annual financial projections;

(f)    within five (5) days of filing, copies of all periodic and other reports, proxy statements and other materials filed by Borrower and/or any Guarantor with the SEC, any Governmental Authority succeeding to any or all of the functions of the SEC or with any national securities exchange, or distributed to its shareholders, as the case may be.  Documents required to be delivered pursuant to the terms hereof (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date on which Borrower posts such documents, or provides a link thereto, on Borrower’s website on the internet at Borrower’s website address; provided, however, Borrower shall promptly notify Bank in writing (which may be by electronic mail) of the posting of any such documents;
(g)    prompt report of any legal actions pending or threatened in writing against Borrower or any of its Subsidiaries that could reasonably be expected to result in damages or costs to Borrower or any of its Subsidiaries of, individually or in the aggregate, One Million Dollars ($1,000,000) or more;

(h)    within thirty (30) days of the end of each calendar quarter, an update on the status of any litigation disclosed on the Perfection Certificate along with such other information relating thereto as reasonably requested by Bank;

(i)    prompt written notice of any changes to the beneficial ownership information set out in Section 13 to the Perfection Certificate.  Borrower understands and acknowledges that Bank relies on such true, accurate and up-to-date beneficial ownership information to meet Bank’s regulatory obligations to obtain, verify and record information about the beneficial owners of its legal entity customers; and

(j)    promptly, from time to time, such other information regarding Borrower or compliance with the terms of any Loan Documents as reasonably requested by Bank.

Any submission by Borrower of a Compliance Statement, a Borrowing Base Statement or any other financial statement submitted to the Financial Statement Repository pursuant to this Section 6.2 or otherwise submitted to Bank shall be deemed to 

4

be a representation by Borrower that (i) as of the date of such Compliance Statement, Borrowing Base Statement or other financial statement, the information and calculations set forth therein are true, accurate and correct, (ii) as of the end of the compliance period set forth in such submission, Borrower is in complete compliance with all required covenants except as noted in such Compliance Statement, Borrowing Base Statement or other financial statement, as applicable, (iii) as of the date of such submission, no Events of Default have occurred or are continuing, (iv) all representations and warranties other than any representations or warranties that are made as of a specific date in Section 5 remain true and correct in all material respects as of the date of such submission except as noted in such Compliance Statement, Borrowing Base Statement or other financial statement, as applicable, (v) as of the date of such submission, 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, and (vi) as of the date of such submission, 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.”

2.9    Section 6.13 (Dispositions).  Section 6.13 of the Loan Agreement is hereby amended and restated in its entirety as follows:
“6.13    Formation or Acquisition of Subsidiaries.  Notwithstanding and without limiting the negative covenants contained in Sections 7.3 and 7.7 hereof, at the time that Borrower or any Guarantor forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary after the Effective Date (including, without limitation, pursuant to a Division), Borrower and such Guarantor shall (a) with respect to Domestic Subsidiaries only, cause such new Domestic Subsidiary to provide to Bank a joinder to this Agreement to become a co-borrower hereunder or a Guaranty to become a Guarantor hereunder, together with such appropriate financing statements and/or Control Agreements, all in form and substance satisfactory to Bank (including being sufficient to grant Bank a first priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Domestic Subsidiary), (b) provide to Bank appropriate certificates and powers and financing statements, pledging all of the direct or beneficial ownership interest in such new Subsidiary, in form and substance satisfactory to Bank, provided, however, that Borrower shall not be required to pledge more than sixty-five percent (65%) of the direct or beneficial ownership interest of any Foreign Subsidiary; and (c) provide to Bank all other documentation in form and substance satisfactory to Bank, including one or more opinions of counsel satisfactory to Bank, which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to above.  Any document, agreement, or instrument executed or issued pursuant to this Section 6.13 shall be a Loan Document.”

2.10    Section 7.1 (Dispositions).  Section 7.1 of the Loan Agreement is hereby amended and restated in its entirety as follows:
“7.1    Dispositions.  Convey, sell, lease, transfer, assign, or otherwise dispose of (including, without limitation, pursuant to a Division) (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 that is, in the reasonable judgment of Borrower, no longer economically 

5

practicable to maintain or useful in the ordinary course of business of Borrower; (c) consisting of Permitted Liens and Permitted Investments; (d) consisting of the sale or issuance of any stock of Borrower permitted under Section 7.2 of this Agreement; (e) dispositions of Intellectual Property that are permitted pursuant to Section 6.10(a); (f) consisting of Borrower’s use or transfer of money or Cash Equivalents in a manner that is not prohibited by the terms of this Agreement or the other Loan Documents; (g) 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 discrete geographical areas outside of the United States; and (h) of other property with a book value not to exceed Five Hundred Thousand Dollars ($500,000) in the aggregate in any fiscal year.”
2.11    Section 7.3 (Mergers or Acquisitions).  Section 7.3 of the Loan Agreement is hereby amended and restated in its entirety as follows:
“7.3    Mergers or Acquisitions.  Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person (including, without limitation, by the formation of any Subsidiary or pursuant to a Division). Notwithstanding the foregoing, (a) a Subsidiary may merge or consolidate into another Subsidiary or into Borrower and (b) Borrower may consummate Permitted Acquisitions.”
2.12    Section 13 (Definitions).  The following terms and their respective definitions set forth in Section 13.1 of the Loan Agreement hereby are added or amended and restated in their entirety, as appropriate, as follows:
“Borrowing Base Statement” is that certain report of the value of certain Collateral in the form specified by Bank to Borrower from time to time.
“Compliance Statement” is that certain statement in the form attached hereto as Exhibit B.
“Division” means, in reference to any Person which is an entity, the division of such Person into two (2) or more separate Persons, with the dividing Person either continuing or terminating its existence as part of such division, including, without limitation, as contemplated under Section 18-217 of the Delaware Limited Liability Company Act for limited liability companies formed under Delaware law, or any analogous action taken pursuant to any other applicable law with respect to any corporation, limited liability company, partnership or other entity.
“Financial Statement Repository” is l43f1c@svb.com or such other means of collecting information approved and designated by Bank after providing notice thereof to Borrower from time to time.
“Quarterly Financial Statements” is defined in Section 6.2(c).

“Revolving Line Maturity Date” is August 2, 2022.

6

“Third Amendment Effective Date” is April 21, 2020
2.13    Section 13 (Definitions).  The following terms and their respective definitions set forth in Section 13.1 of the Loan Agreement hereby are deleted:
“Borrowing Base Report”, “Compliance Certificate”, “Monthly Financial Statements”

2.14    Exhibit B of the Loan Agreement hereby is replaced with Exhibit B (including Schedule 1) attached hereto.
3.    Limitation of Amendment.
3.1    This Amendment 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 Bank 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 are hereby ratified and confirmed and shall remain in full force and effect.
4.    Representations and Warranties.  Borrower represents and warrants to Bank as follows:
4.1    (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;
4.2    Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement;
4.3    The organizational documents of Borrower delivered to Bank on the Effective Date 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 have been duly authorized by all necessary action on the part of Borrower; 
4.5    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement 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;
4.6    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental 

7

or public body or authority, or subdivision thereof, binding on either Borrower, except as already has been obtained or made; 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.    Ratification of Perfection Certificate.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate dated on or prior to the Effective Date, as supplemented by a First Supplement, dated as of July 25, 2018, a Second Supplement, dated as of July 25, 2018 and a Third Supplement, dated as of August 28, 2019, and a Fourth Supplement, dated as of April 21, 2020, and as supplemented by all other notices to the Bank under the Loan Agreement changing any such information previously provided, and acknowledges, confirms and agrees that the disclosures and information Borrower provided to Bank in such Perfection Certificate, as supplemented, have not changed, as of the date hereof, in any material respect except for (i) average monthly bank balances which change from time to time, and (ii) changes in litigation set forth in Borrower’s periodic filings with the Securities and Exchange Commission from time to time.
6.    Integration.  This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.  All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.
7.    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.
8.    Conditions to Effectiveness.  The parties agree that this amendment shall be effective upon (A) the due execution and delivery to Bank of (i) this Amendment by each party hereto, and (ii) an updated Corporate Borrowing Certificate in the form attached hereto, and (B) Borrower’s payment of all Bank Expenses due and owing as of the date hereof, which may be debited from any of Borrower’s accounts at Bank.  Bank shall apply to such Bank Expenses the Twenty-Five Thousand Dollars ($25,000) good faith deposit that Borrower deposited with the Bank prior to the Third Amendment Effective Date.
9.    Miscellaneous.
9.1    This Amendment shall constitute a Loan Document under the Loan Agreement; the failure to comply with the covenants contained herein shall constitute an Event of Default under the Loan Agreement; and all obligations included in this Amendment (including, without limitation, all obligations for the payment of principal, interest, fees, and other amounts and expenses) shall constitute obligations under the Loan Agreement and secured by the Collateral.
9.2    Each provision of this Amendment is severable from every other provision in determining the enforceability of any provision.
10.    Governing Law.  This Amendment and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of California.
[Balance of Page Intentionally Left Blank]

8

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

	
		
	BANK
	BORROWER

	

SILICON VALLEY BANK

By: /s/ Shawn Parry   

Name: Shawn Parry   

Title: Managing Director   
	

FLUIDIGM CORPORATION

By: /s/ Vikram Jog   

Name: Vikram Jog   

Title: Chief Financial Officer   

 

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

EXHIBIT B 
 
COMPLIANCE STATEMENT
TO:    SILICON VALLEY BANK                    Date:                  
FROM:  FLUIDIGM CORPORATION

Under the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”): Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below.  Attached are the required documents evidencing such compliance, setting forth calculations prepared in accordance with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes.  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 Covenants
	Required
	Complies

	 
	 
	 

	Quarterly Financial Statements*
	Within 45 days after the end of each fiscal quarter
	Yes   No

	Compliance Statement
	(i) within 45 days after the end of each fiscal quarter when the principal amount outstanding under the Revolving Line = $0.00 at all times during such fiscal quarter, and (ii) within 30 days after the end of each month when the principal amount outstanding under the Revolving Line is > $0.00 at any time during such calendar month
	Yes   No

	10-Q, 10-K and 8-K
	Within 5 days
	Yes   No

	A/R & A/P Agings and 
Monthly Perpetual Inventory Reports
	(i) within 30 days after the end of each fiscal quarter when the principal amount outstanding under the Revolving Line = $0.00 at all times during such fiscal quarter, and (ii) within 30 days after the end of each month when the principal amount outstanding under the Revolving Line is > $0.00 at any time during such calendar month
	Yes   No

	Borrowing Base Statement
	(i) no later than Friday of each week when a Streamline Period is not in effect and the principal amount outstanding under the Revolving Line is > $0.00, (ii) within 7 days after the end of each month (provided however that if such seventh day is not a Business Day, then such Borrowing Base Statement shall be delivered on next Business Day) when a Streamline Period is in effect and when the principal amount outstanding under the Revolving Line is > $0.00 at any time during such calendar month, and (iii) within 7 days after the end of each fiscal quarter when the principal amount outstanding under the Revolving Line = $0.00 at all times during such fiscal quarter
	Yes   No

	
			
	Board Approved Projections
	Within 30 days of each fiscal year of Borrower, and within 7 days of any updates/amendments
	Yes   No

	*Provided, however, notwithstanding the foregoing, the Quarterly Financial Statements for Borrower’s fourth (4th) quarter of each fiscal year, shall be due within ninety (90) days of such fiscal quarter.

	 

	
				
	Streamline
	Required
	Actual
	Applies

	 
	 
	 
	 

	Maintain as indicated:
	 
	 
	 

	Liquidity
	> $20,000,000
	$_________
	Yes   No

The following streamline analysis and information set forth in Schedule 1 attached hereto are true and accurate as of the date of this Compliance Statement.
Borrower represents that, except as set forth below (i) as of the date of this Compliance Statement, the information and calculations set forth therein are true, accurate and correct, (ii) as of the end of the compliance period set forth herein, Borrower is in complete compliance with all required covenants except as noted herein, (iii) as of the date hereof, no Events of Default have occurred or are continuing, (iv) all representations and warranties other than any representations or warranties that are made as of a specific date in Section 5 of the Agreement remain true and correct in all material respects as of the date of such submission except as noted below, (v) as of the date hereof, 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 (vi) as of the date hereof, 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
The following are the exceptions with respect to the statements above: (If no exceptions exist, state “No exceptions to note.”)
_____________________________________________________________________________________________

Schedule 1 to Compliance Statement 

In the event of a conflict between this Schedule and the Agreement, the terms of the Agreement shall govern.
Dated:    ____________________
I.Liquidity (Streamline Calculation)
Required: Liquidity > $20,000,000

Actual:

	
			
	A.    
	Aggregate value of Borrower’s unrestricted cash held at Bank
	$   

	B.    
	Aggregate value of Borrower’s unrestricted cash at accounts outside Bank but subject to a Control Agreement

	$   

	C.    
	Availability Amount
	$   

	D.    
	Liquidity (the sum of lines A, B, and C)
	$   

Is line D greater than $20,000,000?

  No (Streamline does NOT apply)                  Yes (Streamline does apply)    

    

CORPORATE BORROWING CERTIFICATE

BORROWER:  FLUIDIGM CORPORATION                  DATE:  April __, 2020
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 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 above.  Such Certificate of Incorporation has not been amended, annulled, rescinded, revoked or supplemented, and remains 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 Silicon Valley Bank (“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

	Vikram Jog
	 
	Chief Financial Officer
	 
	 
	ý

	Stephen Christopher Linthwaite
	 
	President and CEO
	 
	 
	ý

	 
	 
	 
	 
	 
	o

	 
	 
	 
	 
	 
	o

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.
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.
Apply for Letters of Credit.  Apply for letters of credit from Bank.
Enter Derivative Transactions.  Execute spot or forward foreign exchange contracts, interest rate swap agreements, or other derivative transactions.
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 effect these 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.

By:                      

Name:      Vikram Jog            

Title:      Chief Financial Officer        

*** 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 President and CEO of Borrower, hereby certify as to paragraphs 1 through 5 above, as of the date set forth above.

By:                      

Name:      Stephen Christopher Linthwaite    

Title:      President and CEO

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