SEC Contract Filing

Filing Date: 2019-05-15

Document Content:
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<TYPE>EX-10.3
<SEQUENCE>3
<FILENAME>andr3577291-ex103.htm
<DESCRIPTION>SECOND AMENDMENT TO THE RIDER TO AMENDED AND RESTATED REVENUE SHARING
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<P style="TEXT-ALIGN: center"><FONT size=2 face="Times New Roman"><B>SECOND AMENDMENT TO THE RIDER TO AMENDED AND RESTATED</b><BR></FONT><FONT size=2 face="Times New Roman"><B>REVENUE SHARING AND NOTE PURCHASE AGREEMENT</B></FONT></P> <P style="TEXT-ALIGN: center"><FONT size=2 face="Times New Roman"><B>May 10, 2019</B></FONT></P>

<P STYLE="text-align: justify; text-indent: 15pt"><FONT size=2 face="Times New Roman">Reference is hereby made to: (a) the
Revenue Sharing and Note Purchase Agreement, originally dated as of February 14, 2014, and amended and restated as of
December 24, 2014 (as so amended and restated, the &#147;<U>Original Agreement</U>&#148;; and, the Original Agreement, as
supplemented by the Amended Rider referred to below and otherwise amended, restated, supplemented or modified from time to
time, the &#147;<U>Agreement</U>&#148;), by and among ANDREA ELECTRONICS CORPORATION, a New York corporation (the
&#147;<U>Company</U>&#148;), AND34 FUNDING LLC, as collateral agent (the &#147;<U>Collateral Agent</U>&#148;), and the
financial institutions party thereto as &#147;Purchasers&#148;; and (b) the Rider to the Amended and Restated Revenue Sharing
and Note Purchase Agreement, originally dated as of August 10, 2016 as amended by that certain First Amendment to the Rider
to Amended and Restated Revenue Sharing and Note Purchase Agreement dated October 24, 2017 (as amended or modified from time
to time, the &#147;<U>Original Rider</u>&#148;), by and among the Company, the Collateral Agent and the Purchasers party
thereto. Capitalized terms used but not defined herein shall have the meanings ascribed to such terms in the Original
Agreement as supplemented by the Original Rider.</FONT></P>

<P STYLE="text-align: justify; text-indent: 15pt"><FONT size=2 face="Times New Roman">This Second Amendment to the Original Rider (this &#147;<U>Second Amendment</U>&#148;; together with the Original Rider, as amended by this Second Amendment, the &#147;<U>Amended Rider</U>&#148;) is dated as of May 10</FONT><FONT size=4 face="Times New Roman">, </FONT><FONT size=2 face="Times New Roman">2019, and, upon execution by the parties identified on the signature pages hereto, will hereafter be part of the Original Agreement and the Original Rider.</FONT></P>

<P STYLE="text-align: justify; text-indent: 15pt"><FONT size=2 face="Times New Roman">WHEREAS, the Company has requested to amend the Original Rider as contemplated hereby; and</FONT></P>

<P STYLE="text-align: justify; text-indent: 15pt"><FONT size=2 face="Times New Roman">WHEREAS, the Collateral Agent, the Revenue Participants party hereto and the Noteholders party hereto are willing to amend the Original Rider, subject to the terms and conditions set forth below.</FONT></P>

<P STYLE="text-align: justify; text-indent: 15pt"><FONT size=2 face="Times New Roman">NOW THEREFORE, in consideration of the foregoing and for good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged, the parties hereto hereby agree to amend the Original Rider as follows:</FONT></P>

<P STYLE="text-align: justify; text-indent: 15pt"><FONT size=2 face="Times New Roman">1. </FONT><FONT size=2 face="Times New Roman"><U>Amendment to Recitals to the Original Rider</U>. The parenthetical in the second recital of the Original Rider is hereby amended and restated in its entirety to read as follows:</FONT></P>

<P style="TEXT-ALIGN: justify; padding-left:30pt"><FONT size=2 face="Times New Roman">(including the 2016 Notes (as defined below) and the 2019 Notes (as defined below), hereafter, the &#147;<U>Additional Notes</U>&#148;)</FONT></P>

<P STYLE="text-align: justify; text-indent: 15pt"><FONT size=2 face="Times New Roman">2. <U>Amendment to Section C.l to the Original Rider</U>. Section C.1 of the Original Rider is hereby amended and restated in its entirety as follows:</FONT></P>

<P style="TEXT-ALIGN: justify; padding-left:30pt"><FONT size=2 face="Times New Roman">C.1. <U>Purchase and Sale of Additional Notes</U>.</FONT></P>

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<P STYLE="text-align: justify; text-indent: 15pt; padding-left:30pt"><FONT size=2 face="Times New Roman">C.1.1. On August 10, 2016 (the &#147;<U>Rider Date</U>&#148;) and from time to time thereafter as provided herein, the Company agreed to issue and sell, and each Note Purchaser agreed to purchase additional Notes (the &#147;<U>2016 Notes</U>&#148;) in an aggregate original principal amount of up to $7,500,000. The Company acknowledges and agrees that a portion of the 2016 Notes in an aggregate principal amount equal to $7,400,000 has already been purchased and sold under the Original Agreement (as supplemented by the Original Rider).</FONT></P>

<P STYLE="text-align: justify; text-indent: 15pt; padding-left:30pt"><FONT size=2 face="Times New Roman">C.1.2. On and after May 10</FONT><FONT size=3 face="Times New Roman">, </FONT><FONT size=2 face="Times New Roman">2019, the Company agrees to issue and sell, and each Note Purchaser agrees to purchase, additional Notes (the &#147;<U>2019 Notes</U>&#148;) in an aggregate original principal amount not to exceed $4,000,000, bringing the total availability of Additional Notes to an aggregate principal amount of $4,100,000 (excluding any PIK Interest).</FONT></P>

<P STYLE="text-align: justify; text-indent: 15pt; padding-left:30pt"><FONT size=2 face="Times New Roman">C.1.3 Any Additional Note shall </FONT><FONT size=3 face="Times New Roman">be </FONT><FONT size=2 face="Times New Roman">in a minimum amount of $100,000, and the Company may not request Additional Notes to be acquired more than one time </FONT><FONT size=2 face="Times New Roman">in </FONT><FONT size=2