EX-10.18 21 d782664dex1018.htm EX-10.18 EX-10.18

Exhibit 10.18

THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT

This Third Amendment to Loan and Security Agreement (this “Amendment”) is entered into as of November 20, 2017, by and between WESTERN ALLIANCE BANK, an Arizona corporation (“Bank”) and BIONANO GENOMICS, INC., a Delaware corporation (“Borrower”).

RECITALS

Borrower and Bank are parties to that certain Loan and Security Agreement dated as of March 8, 2016, as amended from time to time, including by that certain First Amendment to Loan and Security Agreement dated as of December 9, 2016, and that certain Second Amendment to Loan and Security Agreement dated as of May 2, 2017 (collectively, the “Agreement”). The parties desire to amend the Agreement in accordance with the terms of this Amendment.

NOW, THEREFORE, the parties agree as follows:

1. The following defined terms in Section 1.1 of the Agreement hereby are added, amended or restated as follows:

“Third Amendment Effective Date” means November 20, 2017.”

2. New subsection (e) hereby is added to the end of Section 2.6 of the Agreement to read as follows:

“(e) Third Amendment Fee. An amendment fee equal to Seventeen Thousand Five Hundred Dollars ($17,500) (the “Third Amendment Fee”) which shall be nonrefundable, due on the earliest to occur of (a) the Term Loan Maturity Date, or (b) the acceleration of any Term Loan, or (c) the prepayment of a Term Loan pursuant to Section 2.2(c) or (d).”

3. Section 6.8 of the Agreement hereby is amended and restated in its entirety to read as follows:

“6.8 Funding Milestones.

(i) On or after the Third Amendment Effective Date and on or before November 27, 2017, Borrower shall have received at least One Million Five Hundred Thousand Dollars ($1,500,000) of gross cash proceeds (provided that Borrower shall only incur a reasonable amount of transaction expenses in connection therewith) from the sale or issuance of its equity securities or Subordinated Debt to investors and on terms and conditions reasonably acceptable to Bank.

(ii) On or after the Third Amendment Effective Date and on or before December 31, 2017, Borrower shall have received at least Fifteen Million Dollars ($15,000,000) (excluding amounts received in connection with 6.8(i)) of gross cash prgceeds (provided that Borrower shall only incur a reasonable amount of transaction expenses in connection therewith) from the sale or issuance of its equity securities or Subordinated Debt to investors and on terms and conditions reasonably acceptable to Bank.”

4. Exhibit C to the Agreement hereby is replaced with Exhibit C attached hereto.

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

6. No course of dealing on the part of Bank or its officers, nor any failure or delay in the exercise of any right by Bank, shall operate as a waiver thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right. Bank’s failure at any time to require strict performance by Borrower of any provision shall not affect any right of Bank thereafter to demand strict compliance and performance. Any suspension or waiver of a right must be in writing signed by an officer of Bank.

 

1


IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.

 

BIONANOGENOMICS, INC., a Delaware

corporation

By:

 

/s/ R. Erik Holmlin

Name

 

R. Erik Holmlin

Title:

 

CEO

WESTERN ALLIANCE BANK, an Arizona

corporation

By:

 

/s/ Lindsay Fouty

Name:

 

Lindsay Fouty

Title:

 

VP, Portfolio Management

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


EXHIBIT C

2017 annual financial projections (effective as of September 30, 2017)

[to be attached]


          Financial Performance for 2017        
          January     February     March     April     May     June     July     August     September     October     November     December     Full Year        
 

Revenue:

                                     
 

Instrument 

    $13,700       $7,659       $1,341,799        $794,847       $330,998       $657,989       $1,179,420       $304,200       $810,000       $540,000       $540,000       $1,080,000       $7,600,612    
 

Cartridge 

    $16,958       $83,660       $60,090       $85,065       $17,383       $51,361       $102,174       $45,000       $134,000       $94,200       $94,200       $139,750       $923,841    
 

Kit 

    $18,245       $24,844       $26,893       $22,421       $21,320       $34,050       $35,857       $38,200       $40,200       $32,970       $32,970      
$41,925
 
    $369,894    
 

Other 

    $40,421       $40,421       $38,963       $46,849       $39,928       $41,711       $57,885       $43,000       $40,000       $40,000       $40,000       $40 000       $509,178    
 

Service 

    $0       $0       $0       $0       $30,000       $15,000       $0       $25,000       $5,000       $5,000       $5,000       $5,000      
$90,000
 
 
 

Grant 

                                                                                                    $0    
 

Total Revenue 

    $89,324       $156,584       $1,467,745       $949,182       $439,629       $800,111       $1,375,336       $455,400       $1,029,200       $712,170       $712,170       $1,306,675       $9,493,525    
                                       
 

Total COGS 

    $41,899       $53,578       $1,186,116       $592,872       $278,326       $457,664       $871,520       $251,768       $597,168       $419,289       $419,289       $764,192       $5,933,680    
                                       
 

Gross Margin 

    $47,425       $103,006       $281,629       $356,309       $161,304       $342,446       $503,816       $203,632       $432,032       $292,881       $292,881       $542,483       $3,559,845    
 

GM% 

    53.1%       65.8%       19.2%       37.5%       36.7%       42.8%       36.6%       44.7%       42.0%       41.1%       41.1%       41.5%       37.5%    
                 
 

Operating Expenses:

                                     
 

Operations 

    $125,771       $140,448       $134,904       $142,828       $156,464       $192,303       $153,144       $153,144       $124,835       $123,585       $123,585       $124,835       $1,695,846    
 

General & Administrative 

    $402,408       $323,674       $538,195      
$345,803
 
   
$343,881
 
   
$657,919
 
   
$468,612
 
   
$643,881
 
    $518,506       $341,150       $329,150       $468,506       $5,381,686    
 

Sales & Marketing 

   
$547,824
 
   
$461,654
 
   
$793,393
 
   
$721,478
 
   
$454,213
 
   
$599,853
 
   
$489,833
 
   
$489,833
 
   
$804,506
 
   
$473,199
 
   
$454,099
 
   
$804,506
 
    $7,094,389    
 

Research 

   
$111,001
 
   
$128,959
 
   
$163,839
 
   
$139,702
 
   
$126,091
 
   
$173,282
 
   
$114,639
 
   
$114,639
 
   
$0
 
   
$0
 
   
$0
 
   
$0
 
    $1,072,152    
 

Development 

    $920,535       $790,998      
$948,410
 
    $985,590       $1,011,837       $797,226       $804,952       $804,952       $548,518       $488,995       $494,995       $548,518       $9,145,525    
 

Total Operating Expenses 

   
$2,107,539
 
   
$1,845,733
 
   
$2,578,741
 
   
$2,335,400
 
   
$2,092,485
 
   
$2,420,582
 
   
$2,031,180
 
   
$2,206,449
 
   
$1,996,365
 
   
$1,426,929
 
   
$1,401,829
 
   
$1,946,365
 
   
$24,389,599
 
 
       

% of Rev 

 

   

 

2359.4%

 

 

 

   

 

1178.7%

 

 

 

   

 

175.7%

 

 

 

   

 

246.0%

 

 

 

   

 

476.0%

 

 

 

   

 

302.5%

 

 

 

   

 

147.7%

 

 

 

   

 

484.5%

 

 

 

   

 

194.0%

 

 

 

   

 

200.4%

 

 

 

   

 

196.8%

 

 

 

   

 

149.0%

 

 

 

   

 

256.9%

 

 

 

 
       

Total Operating Income 

    ($2,060,114     ($1,742,727     ($2,297,112     ($1,979,091     ($1,931,182     ($2,078,136     ($1,527,364     ($2,002,817     ($1,564,333     ($1,134,048     ($1,108,948     ($1,403,882     ($20,829,754  
                 
       

Other Expense/(Income) 

 

   

 

$45,324

 

 

 

   

 

$45,988

 

 

 

   

 

$89,357

 

 

 

   

 

$48,950

 

 

 

   

 

$49,138

 

 

 

   

 

$6,927

 

 

 

   

 

$69,778

 

 

 

   

 

$45,000

 

 

 

   

 

$45,000

 

 

 

   

 

$45,000

 

 

 

   

 

$45,000

 

 

 

   

 

$45,000

 

 

 

   

 

$580,462

 

 

 

 
       

Net Income 

    ($2,105,438     ($1,788,715     ($2,386,469     ($2,028,042     ($1,980,319     ($2,085,063     ($1,597,142     ($2,047,817     ($1,609,333     ($1,179,048     ($1,153,948     ($1,448,882     ($21,410,216  
       


        Financial Performance for 2017        
        January     February     March     April     May     June     July     August     September     October     November     December     Full Year        

Balance Sheet

                             

Assets:

                             

Cash

      3,690,459       6,002,291       4,793,007       2,843,537       3,188,432       5,714,454       4,557,885       4,791,410       3,281,887       2,297,680       1,639,603       83,057      

Receivables

      1,490,768       1,219,876       1,983,595       2,281,781       1,440,721       1,409,137       2,131,773       1,951,773       2,130,773       2,042,773       1,725,743       2,320,248      

Prepaid

      1,388,023       1,624,149       3,585,679       3,183,223       3,863,488       3,903,122       2,624,011       3,224,011       2,954,011       2,954,011       2,954,011       2,554,011      

Inventory

      1,838,196       1,931,940       2,095,794       2,097,262       1,712,060       1,544,022       2,158,299       2,158,299       1,958,299       1,958,299       2,008,299       2,008,299      

Other Current Assets

      34,942       24,523       29,894       25,606       7,838       3,148       3,148       3,148       3,148       3,148       3,148       3,148      

Current Assets

      8,442,388       10,802,778       12,487,970       10,431,409       10,212,538       12,573,883       11,475,115       12,128,641       10,328,118       9,255,910       8,330,803       6,968,762      

PP&E

      3,797,088       3,696,791       3,626,030       3,511,898       3,552,463       3,445,249       3,338,034       3,381,019       3,277,019       3,189,988       3,087,957       2,985,926      

Intangible Assets

      0       0       0       0       0       0       0       0       0       0       0       0      

Other Non-Current Assets

      69,619       67,308       64,997       62,686       0       0       0       0       0       0       0       0      

Non-Current Assets

      3,866,707       3,764,099       3,691,027       3,574,584       3,552,463       3,445,249       3,338,034       3,381,019       3,277,019       3,189,988       3,087,957       2,985,926      
                             

TOTAL ASSETS

        12,309,095       14,566,876       16,178,996       14,005,993       13,765,002       16,019,132       14,813,149       15,509,660       13,605,137       12,445,898       11,418,761       9,954,689      

Liabilities:

                             

Accounts Payable

      976,172       800,585       2,374,274       1,579,108       1,468,825       1,311,368       1,565,397       1,565,397       1,445,397       1,445,397       1,545,397       1,545,397      

Unearned Revenue

      570,774       555,021       534,348       502,160       372,898       366,977       364,771       376,771       374,271       371,771       369,271       366,771      

Other Current Liabilities

      2,277,994       2,362,163       2,392,354       2,582,442       3,307,167       3,187,148       3,473,172       3,473,172       3,473,172       3,473,172       3,473,172       3,473,172      

Payroll Liabilities

      1,621,893       804,389       1,126,400       1,155,482       1,081,551       1,443,132       1,382,738       1,132,738       992,738       1,027,738       1,069,738       1,069,738      

Tax Liabilities

      111,677       112,831       136,746       127,471       149,197       150,663       151,391       151,391       151,391       151,391       151,391       151,391      

Short-Term Debt

      1,944,444       2,138,889       2,333,333       2,527,778       2,640,769       2,835,214       3,029,658       3,224,102       3,418,546       3,612,990       3,807,434       4,001,878      

Current Liabilities

      7,502,954       6,773,876       8,897,457       8,474,440       9,020,408       9,294,502       9,967,127       9,923,571       9,855,515       10,082,459       10,416,403       10,608,347      

Long-Term Debt

      5,055,556       4,861,111       4,666,667       4,472,222       4,051,102       3,858,969       3,666,835       3,474,701       3,282,567       3,090,433       2,898,299       2,706,165      

Other Long-Term Liability

      980,386       967,970       955,555       943,139       930,724       918,308       900,579       885,579       870,579       855,579       840,579       825,579      

Long-Term Liabilities

      6,035,942       5,829,082       5,622,222       5,415,362       4,981,826       4,777,277       4,567,414       4,360,280       4,153,146       3,946,012       3,738,878       3,531,744      
                             

TOTAL LIABILITIES

        13,538,895       12,602,958       14,519,678       13,889,802       14,002,234       14,071,779       14,534,541       14,283,851       14,008,661       14,028,471       14,155,281       14,140,091      
            (12,416     (12,416     (12,416     (17,730       (15,000     (15,000     (15,000     (15,000    

Equity:

                             

Share Capital

      6,871       6,871       6,871       6,871       11,853       11,853       11,853       6,870       6,870       6,870       6,870       6,870      

Additional Paid-in-Capital

      112,167,907       117,167,907       119,257,907       119,757,907       121,381,439       125,682,444       125,630,763       128,630,763       128,630,763       128,630,763       128,630,763       128,630,763      

Warrants

      4,487,807       4,487,807       4,487,407       4,487,807       4,585,312       4,585,312       4,585,312       4,585,312       4,585,312       4,585,312       4,585,312       4,585,312      

Share Issue Costs

      (1,031,112     (1,049,372     (1.056,037     (1,068,500     (1,153,677     (1,171,749     (1,184,743     (1,184,743     (1,204,743     (1,204,743     (1,204,743     (1,204,743    

Shareholders Equity

      115,631,473       120,613,213       122,696,547       123,184,084       124,824,927       129,107,859       129,043,183       132,038,201       132,018,201       132,018,201       132,018,201       132,018,201      
                             

Retained Earnings (Loss)

      ($116,861,272     ($118,649,292     ($121,037,227     ($123,067,891     ($125,062,159     ($127,160,506     ($128,764,575     ($130,812,392     ($132,421,725     ($133,600,773     ($134,754,721     ($136,203,603    

TOTAL EQUITY

        ($1,229,800     $1,963,921       $1,659,320       $116,193       ($237,232     $1,947,353       $278,638       $1,225,808       ($403,525     ($1,582,572     ($2,736,520     ($4,185,402    
                             

TOTAL LIABILITIES & EQUITY

        12,309,096       14,566,879       16,178,999       14,005,995       13,765,002       16,019,132       14,813,149       15,509,660       13,605,137       12,445,899       11,418,761       9,954,689      
      1       $2       $2       $2       $0       $0       $0       $0       $0       $0       $0       $0      


        Financial Performance for 2017        
        January     February     March     April     May     June     July     August     September     October     November     December     Full Year        

Cash Flow Statement

                             

Operating:

                             

Net Income

      ($2,105,438     ($1,788,020     ($2,387,934     ($2,030,665     ($1,991,349     ($2,098,347     ($1,604,069     ($2,047,817     ($1,609,333     ($1,179,045     ($1,153,948     ($1,448,882     ($21,444,850  

Depreciation

      107,215       107,215       107,215       107,215       130,300       107,215       107,215       104,341       104,341       104,341       104,341       104,341       $1,285,293    

Amortization

      0       0       0       0       0       0       0       0       0       0       0       0      

Convertible Debt interest

      0       0       0       0       (308,128     2,311       2,111       0       0       0       0       0      

Stock-Based Compensation Expense

      0       0       90,000       0       0       90,000       0       0       0       0       0       0      

Deferred Tax Asset

      0       0       0       0       0       0       0       0       0       0       0       0      

Total Items not affecting cash

      107,215       107,215       197,215       107,215       (177,828     199,526       109,526       104,341       104,341       104,341       104,341       104,341      

Investments

      0       0       0       0       0       0       0       0       0       0       0       0      

Receivables

      641,561       270,892       (763,719     (298,186     841,060       (212,916     (478,135     180,000       (179,000     88,000       317,030       (594,505    

Prepaid

      87,399       (263,126     (1,961,530     402,457       (680,265     (39,634     1,279,111       (600,000     270,000       0       0       400,000      

Inventory

      (40,871     (93,744     (163,854     (1,463     385,202       168,038       (614,277     0       200,000       0       (50,000     0      

Other Current Assets

      (10,420     10,420       (5,371     4,288       17,769       4,689       0       0       0       0       0       0      

Accounts Payable

      (49,166     (175,587     1,573,689       (795,166     (110,283     (157,457     254,029       0       (120,000     0       100,000       0      

Other Current Liabilities

      (340,673     68,416       9,519       157,900       595.463       118,560       39,318       12,000       (2,500     (2,500     (2,500     (2,500    

Payroll Liabilities

      45,752       (817,504     322,012       29,082       (73,931     361,581       (60,394     (250,000     (140,000     35,000       42,000       0      

Federal Tax Liabilities

      0       0       0       0       0       0       0       0       0       0       0       0      

State & Local Tax Liabilities

      0       0       0       0       0       0       0       0       0       0       0       0      

Sales Tax Liabilities

      218       1,154       23,916       (9,276     21,727       1,466       728       0       0       0       0       0      

Non-Current Liabilities

      (52,215     (12,416     (12,416     (12,416     (12,416     (12,416     (17,730     (15,000     (15,000     (15,000     (15,000     (15,000    

Changes in non-cash operating working capital

      281,584       (984,496     (977,755     (522,786     984,325       231,911       402,650       (673,000     13,500       105,500       391,530       (212,005    

Total Operating Cash Flow

      (1,716,639     (2,665,301     (3,168,474     (2,446,236     (1,184,852     (1,666,910     (1,091,893     (2,616,476     (1,491,492     (969,207     (658,077     (1,556,546     ($21,232,103  
                             

Investing:

                             

Property, Plant, and Equipment

      $0       ($6,918     ($36,454     $6,918       ($170,865     $0       $0       ($150,000     ($13,031     S0           ($370,350  

Intangible Assets

      $0       $0       $0       $0       $0       0       0       0       0       0       0       0      

Other Non-Current Assets

      $2,311       $2,311       $2,311       $2,311       $62,686       0       0       0       0       0       0       0      

Total Investing Cash Flow

      2,311       (4,607     (34,143     9,228       (108,179     -       -       (150,000     (23,031     -       -       -      
                             

Financing:

                             

Cash Provided (Used) by Debt

      0       0       0       0       0       0       0       0       0       0       0       0      

Provided (Used) by Common Stock

      0       0       0       0       0       0       0       0       0       0       0       0      

Cash Provided (Used) by Series A

      0       0       0       0       0       0       0       0       0       0       0       0      

Cash Provided (Used) by Series B

      0       0       0       0       0       0       0       0       0       0       0       0      

Provided (Used) by Series B Extension

      0       0       0       0       0       0       0       0       0       0       0       0      

Cash Provided (Used) by Series C

      0       0       0       0       0       0       0       0       0       0       0       0      

Cash Provided (Used) by Series D

      0       (18,260     (6,666     (12,463     (11,161     (18,073     (12,994     0       0       0       0       0      

Cash Provided (Used) by Series D-1

      0       5,000,000       2,000,000       500,000       1,649,087       4,211,005       (51,682     3,000,000       (5,000     (15,000     0       0      

Total Financing Cash Flow

      -       4,981,740       1,993,334       487,537       1,637,926       4,192,932       (64,676     3,000,000       (5,000     (15,000     -       -       16,208,794    
                             

NET CASH FLOW

      (1,714,328     2,311,833       (1,209,283     (1,949,470     344,895       2,526,022       (1,156,569     233,524       (1,509,523     (984,207     (658,077     (3,556,546     (5,321,730  

Cash, Beginning of Period

      5,404,787       3,690,459       6,002,291       4,793,008       2,843,538       3,188,432       5,714,454       4,557,886       4,791,410       3,281,887       2,297,680       1,639,603      

Cash, End of Period

        3,690,459       6,002,291       4,793,008       2,843,538       3,188,432       5,714,434       4,557,886       4,791,410       3,281,887       2,297,680       1,639,603       83,057      


EXHIBIT D

COMPLIANCE CERTIFICATE

 

TO:

        WESTERN ALLIANCE BANK, an Arizona corporation

 

FROM:

        BIONANO GENOMICS, INC.

The undersigned authorized officer of BIONANO GENOMICS, INC. hereby certifies that in accordance with the terms and conditions of the Loan and Security Agreement between Borrower and Bank (the “Agreement”), (i) Borrower is in complete compliance for the period ending                      with all required covenants except as noted below and (ii) all representations and warranties of Borrower stated in the Agreement are true and correct in all material respects as of the date hereof except as noted below; provided that those representations and warranties expressly referring to another date shall be true, correct and complete in all material respects as of such date. Attached herewith are the required documents supporting the above certification. The Officer further certifies that these are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes.

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

 

Reporting Covenant

  

Required

  

Complies

Annual financial statements (CPA
Audited)

  

FYE within 180 days

   Yes    No

Monthly financial statements and
Compliance Certificate

  

Prior to each Credit Extension, and monthly within 30 days

   Yes    No

10K and 10Q

  

(as applicable)

   Yes    No

Annual operating budget, sales projections and
operating plans approved by board of directors

  

Annually no later than 45 days after the beginning of each fiscal year

   Yes    No

Deposit balances with Bank

  

$                                               

     

Deposit balance outside Bank

  

$                                               

     

Financial Covenant

    

Required

  

Actual

  

Complies

Funding Milestones

    

Receipt of (i) $1,500,000 on or before November 27, 2017 and (ii) $15,000,000 on or before December 31, 2017 of gross cash proceeds from the sale or issuance of its equity securities or Subordinated Debt

  

$                         

 

$                         

 

$                         

  

Yes

 

Yes

 

Yes

  

No

 

No

 

No

Minimum Cash with Bank

    

ratio of (i) minimum unrestricted cash in accounts with Bank to (ii) Indebtedness to Bank, of at least 0.75 to 1.00

  

                           ;

 

                           

   Yes    No

Performance to Plan (monthly; T6M)

    

At least 75% of the     % projections (see Exhibit C)

      Yes    No


Comments Regarding Exceptions: See Attached.

 

Sincerely,

 

    

BANK USE ONLY

 

Received by:                                                                               

AUTHORIZED SIGNER

 

Date:                                                                                           

 

Verified:                                                                                     

SIGNATURE

    

AUTHORIZED SIGNER

 

Date:                                                                                         

TITLE

 

      

DATE

    

Compliance Status                                     Yes                No

 


CORPORATE RESOLUTIONS TO BORROW

 

 

Borrower: BIONANO GENOMICS, INC.

 

I, the undersigned Secretary or Assistant Secretary of BIONANO GENOMICS, INC. (the “Corporation”), HEREBY CERTIFY that the Corporation is organized and existing under and by virtue of the laws of the State of Delaware.

I FURTHER CERTIFY that attached hereto as Attachments 1 and 2 are true and complete copies of the Certificate of Incorporation, as amended, and the Bylaws of the Corporation, each of which is in full force and effect on the date hereof.

I FURTHER CERTIFY that at a meeting of the Directors of the Corporation, duly called and held, at which a quorum was present and voting (or by other duly authorized corporate action in lieu of a meeting), the following resolutions (the “Resolutions”) were adopted.

BE IT RESOLVED, that any one (1) of the following named officers, employees, or agents of this Corporation, whose actual signatures are shown below:

 

NAMES

    

POSITION

    

ACTUAL SIGNATURES

 

    

 

    

 

 

    

 

    

 

 

    

 

    

 

 

    

 

    

 

acting for and on behalf of this Corporation and as its act and deed be, and they hereby are, authorized and empowered:

Borrow Money. To borrow from time to time from Western Alliance Bank, an Arizona corporation (“Bank”), on such terms as may be agreed upon between the officers, employees, or agents of the Corporation and Bank, such sum or sums of money as in their judgment should be borrowed, without limitation.

Execute Loan Documents. To execute and deliver to Bank that certain Loan and Security Agreement dated as March 8, 2016 (the “Loan Agreement”) and any other agreement entered into between Corporation and Bank in connection with the Loan Agreement, including any amendments, all as amended or extended from time to time, including but not limited to that certain First Amendment to Loan and Security Agreement dated as of December 9, 2016 and that certain Second Amendment to Loan and Security Agreement dated as of May 2, 2017 (collectively, with the Loan Agreement, the “Loan Documents”), and also to execute and deliver to Bank one or more renewals, extensions, modifications, refinancings, consolidations, or substitutions for the Loan Documents, or any portion thereof.

Grant Security. To grant a security interest to Bank in the Collateral described in the Loan Documents, which security interest shall secure all of the Corporation’s Obligations, as described in the Loan Documents.

Negotiate Items. To draw, endorse, and discount with Bank all drafts, trade acceptances, promissory notes, or other evidences of indebtedness payable to or belonging to the Corporation or in which the Corporation may have an interest, and either to receive cash for the same or to cause such proceeds to be credited to the account of the Corporation with Bank, or to cause such other disposition of the proceeds derived therefrom as they may deem advisable.


Warrants. To issue Bank warrants to purchase the Corporation’s capital stock.

Letters of Credit. To execute letter of credit applications and other related documents pertaining to Bank’s issuance of letters of credit.

Corporate Credit Cards. To execute corporate credit card applications and agreements and other related documents pertaining to Bank’s provision of corporate credit cards.

Further Acts. In the case of lines of credit, to designate additional or alternate individuals as being authorized to request advances thereunder, and in all cases, to do and perform such other acts and things, to pay any and all fees and costs, and to execute and deliver such other documents and agreements as they may in their discretion deem reasonably necessary or proper in order to carry into effect the provisions of these Resolutions.

BE IT FURTHER RESOLVED, that any and all acts authorized pursuant to these resolutions and performed prior to the passage of these resolutions are hereby ratified and approved, that these Resolutions shall remain in full force and effect and Bank may rely on these Resolutions until written notice of their revocation shall have been delivered to and received by Bank. Any such notice shall not affect any of the Corporation’s agreements or commitments in effect at the time notice is given.

I FURTHER CERTIFY that the officers, employees, and agents named above are duly elected, appointed, or employed by or for the Corporation, as the case may be, and occupy the positions set forth opposite their respective names; that the foregoing Resolutions now stand of record on the books of the Corporation; and that the Resolutions are in full force and effect and have not been modified or revoked in any manner whatsoever.

IN WITNESS WHEREOF, I have hereunto set my hand on November 20, 2017 and attest that the signatures set opposite the names listed above are their genuine signatures.

 

  

CERTIFIED AND ATTESTED BY:

  

X