Company: SLNH
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001756
Chunk: 1297

Company: Soluna Holdings, Inc
Filing Date: 2025-03-31
Form: 10-K
Item: Item 4
Chunk 1297
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 the effectiveness of a registration statement for the resale of the Registrable Securities (as defined below) or the date
that the Registrable Securities may be sold pursuant to Rule 144 under the Securities Act of 1933, as amended (the “Securities
Act”), without any information requirements, the amount of principal and interest payable on such date shall be reduced by 50%
(the aggregate amount of the six months of such reductions, the “Specified Amount”) and (b) if the aggregate amount of
payments on the Amended Note applied from the proceeds of the sale of the Escrow Shares on or prior to the last six scheduled
payments is less than the Specified Amount (such difference, the “Make Whole Amount”), than the amount of each of the
remaining scheduled payments shall be increased by an amount equal to the Make Whole Amount divided by the number of remaining
scheduled payments, (iv) modify the Note such that the Note is now convertible into up to 2,500,000 shares (the “Conversion
Shares”) of Common Stock based on a conversion price of $5.00, (v) amend the Note to provide that we will be a direct
co-obligor with CloudCo under the Note, and (vi) amend the SPA to allow us to organize or incorporate any subsidiary, over
which we shall have voting or beneficial control, which is being formed with the intent to engage in a business or line of
business substantially similar to that of Soluna Cloud or the Company, without first paying all of the principal and interest due
under the Note and without first obtaining Investor’s prior written consent.

The net proceeds from dispositions
of the Escrow Shares (i) at a price of up to $4.00 per share shall be applied to reduce the outstanding principal balance of the Note
and (ii) at a price greater than $4.00 per share shall be applied first to reduce the outstanding principal balance of the Note in an
amount equal to $4.00 per share of our common stock and then to the Investor.

Also under the Modification Agreement,
we agreed to register for resale the Escrow Shares and Conversion Shares (together, the “Registrable Securities”)
as promptly as commercially practicable, as determined by us, following the registration for resale of certain other securities.
We also agreed to register for resale the shares of our common stock issuable upon exercise of the Warrant as promptly as commercially
practicable, as determined by us, after the