SEC Contract Filing

Filing Date: 2020-02-14

Document Content:
<DOCUMENT>
<TYPE>EX-10.23(3)
<SEQUENCE>58
<FILENAME>exhibit10233-consentguaran.htm
<DESCRIPTION>EXHIBIT 10.23(3)
<TEXT>
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<div><a name="s27D250402B05F2896F7C2F61DA683AB3"></a></div><div><div style="line-height:120%;text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Exhibit 10.23.3</font></div><div style="line-height:120%;text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">EXECUTION</font></div></div><div><br></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">CONSENT, GUARANTY AND AMENDMENT AGREEMENT</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">THIS CONSENT, GUARANTY and AMENDMENT AGREEMENT (this &#8220;</font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Agreement</font><font style="font-family:inherit;font-size:11pt;">&#8221;) is made and entered into as of February 10, 2020, by and among Peninsula Acquisition Corporation, a Delaware corporation (&#8220;</font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Parent</font><font style="font-family:inherit;font-size:11pt;">&#8221;), Transphorm, Inc., a Delaware corporation (the &#8220;</font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Company</font><font style="font-family:inherit;font-size:11pt;">&#8221;), and Yaskawa Electric Corporation (the &#8220;</font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Noteholder</font><font style="font-family:inherit;font-size:11pt;">&#8221;). Capitalized terms used but not defined in this Agreement shall have the meanings given to such terms in that certain subordinated convertible promissory note issued on October 4, 2017 by the Company to the Noteholder, due September 30, 2022, as amended by that certain Waiver, Consent and Amendment Agreement, dated March 16, 2018 (as amended, restated, supplemented or otherwise modified from time to time through the date hereof, the &#8220;</font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Note</font><font style="font-family:inherit;font-size:11pt;">&#8221;).</font></div><div style="line-height:120%;padding-bottom:16px;text-align:center;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;font-weight:bold;">RECITALS</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">WHEREAS, Parent and the Company intend to enter into an agreement and plan of merger and reorganization (the &#8220;</font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Merger Agreement</font><font style="font-family:inherit;font-size:11pt;">&#8221;) by and among Parent, Peninsula Acquisition Sub, Inc., a Delaware corporation (the &#8220;</font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Merger Sub</font><font style="font-family:inherit;font-size:11pt;">&#8221;), and the Company, pursuant to which Merger Sub will merge with and into the Company (the &#8220;</font><font style="font-family:inherit;font-size:11pt;font-weight:bold;">Merger</font><font style="font-family:inherit;font-size:11pt;">&#8221;), the separate corporate existence of Merger Sub will cease, and the Company will survive the Merger as a wholly owned subsidiary of Parent;</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">WHEREAS, in anticipation of and contingent upon the consummation of the Merger, the Company, the Noteholder and Parent desire to amend the Note as set forth herein, to provide, among other things, that the Note shall be convertible into shares of Parent common stock after the Merger; and</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">WHEREAS, pursuant to Section 9(d) of the Note, the Note may be amended, waived or modified upon the written consent of the Company and the Noteholder.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">1.&#160;&#160;&#160;&#160;</font><font style="font-family:inherit;font-size:11pt;text-decoration:underline;">Consent to Merger</font><font style="font-family:inherit;font-size:11pt;">. The Noteholder irrevocably and unconditionally hereby consents to the Merger and agrees that (a) the execution or effectiveness of the agreement, documents and instruments to which the Merger is or will be carried out, (b) the consummation of the Merger and (c) the Company&#8217;s performance of its obligations under the Merger Agreement, or the documents, instruments, or transactions contemplated thereby, shall not give rise to an Event of Default or Change of Control under the Note.</font></div><div style="line-height:120%;padding-bottom:16px;text-align:justify;text-indent:48px;font-size:11pt;"><font style="font-family:inherit;font-size:11pt;">2.&#160;&#160;&#160;&#160;</font><font style="font-f