|
Ohio
(State or other jurisdiction of incorporation) |
0-147
(Commission File Number) |
34-0288470 (IRS Employer Identification No.) |
Amendment No. 4 to Convertible Loan Agreement. On
December 30, 2015, Hickok
Incorporated (the "Company") and Roundball LLC, an Ohio limited
liability company ("Roundball"), entered into Amendment No. 4
("Amendment No. 4") which modifies that certain Convertible Loan
Agreement (the "Convertible Loan Agreement"), dated December 30,
2011, between the Company, Roundball, and the Aplin Family, and solely
with
respect to Section 3 thereof, Robert L. Bauman.
Under the terms of the original Convertible Loan Agreement, Roundball
was
provided with the right, exercisable at its option, to cause the
Company to
borrow up to $466,879.88 from Roundball (the "Roundball Option").
Amendment No. 1 to the Convertible Loan Agreement provided the Company
with the
right to cause Roundball to lend up to $250,000 to it, less any amounts
outstanding
under the Roundball Option (the "Borrower Option") under a
convertible note to Roundball (the "Borrower Option Note") on the
terms and conditions applicable to any borrowings that may be made
under the
terms of the Convertible Loan Agreement pursuant to the exercise of the
Roundball Option. Both the Roundball Option and the Borrower Option
were set to
expire on December 30, 2015 pursuant to Amendment No. 3 to the
Convertible Loan
Agreement.
The description of the Convertible Loan Agreement, including Amendment
No. 1, Amendment No. 2, and Amendment No. 3 thereto,
set forth in the Company's Reports on Form 8-K dated December 30, 2011,
December 30, 2012, December 30, 2013, and December 31, 2014,
respectively, are
incorporated herein by reference.
Amendment No. 4 amends the existing Convertible Loan Agreement to,
among other
things, (i) extend the Roundball Option to December 30, 2016, and (ii)
extend
the Borrower Option to December 30, 2016. The maturity date for any
convertible
notes issued pursuant to the Convertible Loan Agreement, as amended, is
December 30, 2016.
On December 30, 2015, in partial consideration for Amendment No. 4, the Company and Roundball entered into Amendment No. 1 to Warrant Agreement (the "Warrant Agreement Amendment") which modifies that certain Warrant Agreement (the "Warrant Agreement"), dated December 30, 2012, whereby the Company issued a warrant to Roundball to purchase, at its option, up to 100,000 shares of Class A Common Stock of the Company at an exercise price of $2.50 per share, subject to certain anti-dilution and other adjustments. The Warrant Agreement Amendment amends the Warrant Agreement by extending the expiration date for exercising such warrants from December 30, 2015 to December 30, 2016.
Roundball is an affiliate of Steven Rosen and Matthew Crawford, who are directors of the Company. The foregoing descriptions of Amendment No. 4 and the Warrant Agreement Amendment are qualified in their entirety by reference to the copies thereof which are attached hereto as Exhibits 10.1 and 10.2, respectively, and incorporated by reference in this Item 1.01.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.(d) Exhibits.
| Exhibit Number |
Description of Exhibit |
|
| 10.1 |
Amendment No. 4 to Convertible Loan Agreement,
dated December 30, 2015, among the Company and Roundball. |
|
| 10.2 |
Amendment No. 1 to Warrant Agreement, dated
December 30, 2015, among the Company and roundball. |
EXHIBIT INDEX
| Exhibit Number |
Description of Exhibit |
|
| 10.1 |
Amendment No. 4 to Convertible Loan Agreement, dated December 30, 2015, among the Company and Roundball. | |
| 10.2 |
Amendment No. 1 to Warrant Agreement, dated December 30, 2015, among the Company and roundball. | |
AMENDMENT NO. 4 TO CONVERTIBLE LOAN AGREEMENT
THIS AMENDMENT NO. 4 TO CONVERTIBLE LOAN AGREEMENT ("Amendment"), dated as of December 30, 2015, is made by and between Hickok Incorporated, an Ohio corporation ("Borrower"), and Roundball LLC, an Ohio limited liability company ("Roundball").
WHEREAS, the Borrower and Roundball are parties to that certain Convertible Loan Agreement dated December 30, 2011, as amended by Amendment No. 1 thereto dated December 30, 2012, Amendment No. 2 thereto dated December 30, 2013 and Amendment No. 3 thereto dated December 31, 2014 (the "Agreement"), which among other things provides Roundball with the right, exercisable at its option, to cause the Borrower to borrow up to an additional $466,879.88 from it at any time prior to the Roundball/Borrower Option Maturity Date, and provides the Borrower with the right to cause Roundball to lend up to $250,000 to it on the terms and conditions applicable to any borrowings that may be made under the terms of Agreement pursuant to the exercise of the Roundball Option; and >
WHEREAS, the parties desire to extend the Roundball/Borrower Option Maturity Date as defined in the Agreement with respect to any borrowings made under the arrangements contemplated by this Amendment, and to provide for a form of note evidencing any such borrowings.
NOW, THEREFORE, the parties agree as follows:
(a) Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Agreement.
(b) The form of the Roundball/Borrower Option Note attached hereto shall be deemed to be attached as Exhibit F to the Agreement and replace the existing form of such Roundball/Borrower Option Note in its entirety.
(c) The representations and warranties of the Borrower set forth in Section 5 of the Agreement are hereby affirmed in their entirety as if made on the date hereof, with the exception of the following:
1. Section 5.2(a) of the Agreement is hereby amended to read in its entirety as follows:
5.2 Capitalization. The authorized capital stock of the Borrower consists of 10,000,000 shares of Class A Common Stock, of which 1,163,349 shares were issued and outstanding as of the close of business on September 30, 2015, and 2,500,000 shares of Class B Common Stock, of which 474,866 shares were issued and outstanding as of the close of business on September 30, 2015. As of September 30, 2015, 15,795 shares of Class A Common Stock and 667 shares of Class B Common Stock were held in treasury by the Borrower. All of the outstanding Shares have been duly authorized and are validly issued, fully paid and nonassessable. Other than 150,000 shares of Class A Common Stock reserved for issuance under the Borrower's 2013 Omnibus Equity Plan, 6,000 shares of Class A Common Stock reserved for issuance under the Borrower’s other stock option plans, 252,367 shares of Class A Common Stock reserved for issuance to Roundball in accordance with the provisions of this Agreement, and 200,000 shares of Class A Common Stock issuable upon the exercise of warrants issued to Roundball and Robert L. Bauman in accordance with the terms of those certain Warrant Agreements dated December 30, 2012, the Borrower has no shares of any class of capital stock reserved for issuance.
2. Section 5.5 of the Agreement is amended to delete the words "September 30, 2014, and to substitute therefore the words "September 30, 2015."
(d) The representations and warranties of Roundball set forth in Section 6 of the Agreement are hereby affirmed in their entirety as if made on the date hereof, with the exception of the following:
1. Section 6.4 of the Agreement is amended to read in its entirety as follows:
6.4 Disclosure and Access to Information. Roundball acknowledges that it has received and reviewed a copy of the Borrower's (a) Annual Report on Form 10-K for the fiscal year ending September 30, 2015; (b) Proxy Statement for its Annual Meeting of Shareholders filed with the SEC on March 3, 2015; (c) Quarterly Reports on Form 10-Q for the periods ending December 31, 2014, March 31, 2015 and June 30, 2015; (d) Current Reports on Form 8-K filed January 6, 2015, January 12, 2015, February 13, 2015, April 3, 2015, May 13, 2015, July 23, 2015, August 13, 2015 and December 15, 2015; (e) unaudited statements of income for each of the months ended July 31, August 31, and September 30, 2015 and (f) unaudited balance sheet dated September 30, 2015. In addition, Roundball acknowledges that it and its representatives have had access to such additional information concerning the Borrower as it deemed necessary or appropriate to make an informed investment decision with respect to the transactions contemplated by this Agreement, including access to and an opportunity to ask questions of the Borrower's management (which questions have been responded to by such persons to Roundball’s satisfaction).
(e) The parties agree that the amendments set forth herein shall apply from and after December 30, 2015, and that nothing contained herein shall be deemed to modify or waive any rights or obligations under the agreement existing prior to that date.
IN WITNESS WHEREOF, the parties have duly executed this Amendment by their duly authorized officers as of the date first above written.
HICKOK INCORPORATED ROUNDBALL LLC
By: /s/Robert L. Bauman______ By: /s/Frederick Widen_______
Robert L. Bauman, Frederick Widen,
President and CEO Manager
EXHIBIT F
CONVERTIBLE
PROMISSORY NOTE
$_________ Akron, Ohio
_______ __, 2016
FOR VALUE RECEIVED, Hickok Incorporated, an
Ohio
corporation ("Borrower"), hereby promises to pay to the order of
Roundball LLC, an Ohio limited liability company, its successors and
assigns
(herein referred to as "Holder"), with an address of 25101 Chagrin
Boulevard, Suite 350, Beachwood, Ohio 44122, or at such other place as
the
Holder may from time to time designate, the principal sum of
_____________
Dollars ($__0,000) (the "Loan"), with interest thereon at the time
and in the manner set forth herein.
1. Loan
Agreement. This Convertible Promissory Note ("Note") has been
executed and delivered by the Borrower pursuant to the terms of that
certain
Convertible Loan Agreement, dated of as of December 30, 2011, as
amended by
Amendment No. 1 thereto dated December 30, 2012, Amendment No. 2
thereto dated
December 30, 2013, Amendment No. 3 thereto dated December 31, 2014 and
Amendment No. 4 thereto dated December 30,
2015 (the "Loan Agreement"). All
capitalized terms used but not defined
herein shall have the meanings ascribed to such terms in the Loan
Agreement.
2. Principal
and Interest.
(a) The unpaid principal balance of this Note shall bear interest at a rate equal to 0.34% per annum, computed monthly.
(b) If full payment of the principal and interest is not made when due, the amount of the unpaid interest shall be added to the principal balance of this Note.
(c) Interest shall be payable on the Maturity Date (as defined below). Interest shall be computed on the basis of the actual number of days elapsed over a 360-day year.
(d) If all or any portion of the principal
balance or any of the accrued interest under this Note shall not be
paid for
any reason by the Maturity Date or on such earlier date that payment
becomes
due pursuant to the Loan Agreement or this Note, then all accrued and
unpaid
interest at such date shall be added to and become part of the unpaid
principal
balance at the Maturity Date or the date of acceleration, whichever is
earlier.
3. Term. The entire principal
balance of this Note,
together with all accrued interest thereon, shall be due and payable on
December
30, 2016, unless (a) accelerated as set forth in Section 7, (b) the
Holder, in
its sole and absolute discretion, exercises its Lender Conversion
Option, in
whole, pursuant to Section 2.2.2 of the Loan Agreement prior to
December 30,
2016, or (c) Borrower exercises its Borrower Conversion Option pursuant
to
Section 2.2.5 of the Loan Agreement (the "Maturity Date").
4. Prepayment. The Borrower may
prepay the Note, in whole or
in part, at any time upon notice as provided for in the Loan Agreement,
subject
to Holder's conversion rights upon prepayment set forth in Section
2.2.1
therein.
5 Application
of Payments. All payments made
hereunder shall be applied first to the reasonable expenses, if any,
including
reasonable attorney's fees, of the Holder incurred in the collection of
this
Note following default, then to accrued interest, which shall be due
and
payable upon any prepayment, and then to principal.
6. Conversion. This Note is
subject to, and entitled to the
benefits of, the Lender Conversion Option and the Borrower Conversion
Option
set forth in Section 2.2 of the Loan Agreement. Nothing in this Note is intended to limit such conversion
privileges and
to the extent there is any inconsistency between the terms of this Note
and
such conversion privileges, the terms of the Loan Agreement shall
govern.
Borrower acknowledges that, if Holder converts a portion, but less than
all, of
this Note pursuant to the exercise of its Lender Conversion Option,
Borrower
shall cancel this Note and execute and deliver to Lender a replacement
Note in
the aggregate principal amount of the unconverted portion of the Note
surrendered.
7. Events
of Default. If any of the
"Events of Default" as that term is defined in Section 11 of the Loan
Agreement, shall occur and shall not be cured within the time limits
set forth
in said Section 11, then, the principal amount of this Note, together
with all
accrued and unpaid interest thereon and all other amounts payable under
this
Note may become, or may be declared to be, due and payable in the
manner, upon
the conditions and with the effect provided in the Loan Agreement.
8. Payment
of Costs and Expenses. The Borrower agrees to pay all losses, costs
and
expenses, including reasonable attorneys fees, in connection with the
enforcement of the Note, the Loan Agreement and any other instruments
and
documents delivered in connection herewith sustained as a result of the
occurrence of an Event of Default by the Borrower.
9. Amendments.
The terms of this Note are subject to amendment only in the manner
provided for
in the Loan Agreement.
10. Invalidity
of any Provisions in Note. If, for
any reason, any of the terms or provisions (or any part of any
provision)
hereof are found to be invalid, illegal, unenforceable or contrary to
any
applicable law, such invalidity, illegality or unenforceability shall
not
affect any other provision (or any remaining part of any provision) of
this
Note, but this Note shall be construed as if such invalid, illegal or
unenforceable
provision (or any part thereof) had never been contained herein, and
the
Borrower hereby agrees that this Note shall still remain in full force
and
effect subject only to the exclusion of those terms or provisions (and
only to
the extent to which such terms or provisions) shall have been found
invalid,
illegal, unenforceable or contrary to any such applicable law.
11. Presentment,
Demand and Notice Waived. The
Borrower waives presentment for payment, demand and notice of demand,
notice of
non-payment, protest and notice of protest, notice of dishonor and
trial by
jury in any litigation arising out of, relating to, or connected with
this
Note, the Loan Agreement or any other Loan Document.
12. Governing
Law. This Note shall be governed and
construed in accordance with the laws of the State of Ohio (but not
including
the choice of law rules thereof).
[Signature Page Follows.]
IN WITNESS WHEREOF, the Borrower has caused
this Note
to be executed by its duly authorized officer as of the date first
above
written.
HICKOK INCORPORATED
By: ___________________
Its: President and CEO
Exhibit 10.2
AMENDMENT NO. 1 TO WARRANT AGREEMENT
THIS AMENDMENT NO. 1 TO WARRANT AGREEMENT ("Amendment"), dated as of December 30, 2015, is made by and between Hickok Incorporated, an Ohio corporation ("Hickok"), and Roundball LLC, an Ohio limited liability company ("Roundball").
WHEREAS, Hickok and Roundball are parties to that certain Warrant Agreement, dated as of December 30, 2012 (the "Agreement"), pursuant to which Roundball was granted the right and warrant to purchase from Hickok up to, subject to adjustment provided therein, One Hundred Thousand (100,000) shares of Hickok’s Class A Common Stock, without par value, at a purchase price per share of $2.50; and
WHEREAS, the parties desire to extend the Expiration Date (as defined in the Agreement) with respect to the exercise of such rights by Roundball.
NOW, THEREFORE, the parties agree as follows:
(a) Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Agreement.
(b) Section 4 of the Agreement is hereby amended and restated in its entirety to read as follows:
" Expiration. This Warrant shall expire at the close of business on December 30, 2016 (the "Expiration Date"), and shall be void thereafter."
(c) The parties agree that the amendments set forth herein shall apply from and after December 30, 2015, and that nothing contained herein shall be deemed to modify or waive any rights or obligations under the Agreement existing prior to that date.
IN WITNESS WHEREOF, the parties have duly executed this Amendment by their duly authorized officers as of the date first above written.
HICKOK INCORPORATED ROUNDBALL LLC
By: /s/Robert L. Bauman______ By: /s/Frederick Widen_______
Robert L. Bauman, Frederick Widen,
President and CEO Manager