Company: HCWB
Filing Date: 2025-04-28
Form Type: DRS
Source: 0000950123-25-003769
Chunk: 96

Company: HCW Biologics Inc.
Filing Date: 2025-04-28
Form: DRS
Chunk 96
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prior to the Maturity Date and are subject to a 5% prepayment penalty (“Premium Amount”). The Secured Notes are secured by the pledge of our equity ownership interest in Wugen, Inc. (the “Pledged Collateral”). Upon a qualifying
event involving a transaction such as an acquisition, merger or initial public offering in which the Pledged Collateral can be sold or liquidated prior to the Maturity Date, subject to certain limitations (such as a threshold price per share in the
case of an initial public offering), we have agreed to repay all indebtedness (including accrued interest) related to the Secured Notes plus a Premium Amount. Upon an Event of Default (as defined in the Note Purchase Agreement), we will have a
thirty (30) day cure period (the “Cure Period”), and if the Event of Default is not so cured at the end of the Cure Period, we are required to distribute the Pledged Collateral to the Purchasers on a pro rata basis, in full
satisfaction of the indebtedness evidenced by the Secured Notes.

The Pledged Collateral has not been registered and will not be sold or
transferred except as permitted under law and pursuant to registration or exemption therefrom. The Board of Directors and Audit Committee of the Board of Directors reviewed the transaction under the policy for Related Party Transactions and
determined that the transaction was in compliance with such policy.

The holders of $6.6 million of the outstanding principal of the
Secured Notes have agreed to the conversion of the Secured Notes held by them into shares of the Company’s Common Stock at a conversion price of $26.00 per share (adjusted for the Reverse Stock Split), warrants to purchase $3.3 million of the
Company’s Common Stock at an exercise price of $26.00 per share, and the right to their pro rata share of 49.11% of the proceeds of the Company’s shares of Wugen common stock, if and when such shares are ever sold. The conversion was
approved at a Special Meeting of Stockholders held on March 31, 2025.

Stock Option Grants to Executive Officers

We have granted stock options to our named executive officers as more fully described in the section entitled “Executive
Compensation.”

Indemnification Agreements

We have entered into indemnification agreements with each of our directors and officers. The indemnification agreements and our amended and
restated certificate of incorporation and amended and restated bylaws require us to