Company: HCWB
Filing Date: 2025-02-21
Form Type: DEF 14A
Source: 0001193125-25-032115
Chunk: 99

Company: HCW Biologics Inc.
Filing Date: 2025-02-21
Form: DEF 14A
Chunk 99
---
 dated as of July 2, 2024 (the “ Escrow Agreement”). Capitalized terms used in this Term Sheet without further definition are used herein as defined in the Note Purchase Agreement. Pursuant to Section 6 of the Note Purchase Agreement, the parties agreed to “negotiate in good faith terms and conditions for an amendment to [the Note Purchase Agreement]” under which the Notes would be converted into shares of the Company’s common stock, par value $0.0001 per share (“ Common Stock”), following final resolution of the Arbitration and a bona fide equity financing with proceeds of at least $5.0 million. The Arbitration has been resolved and dismissed, and the Company completed a $6.9 million equity financing on November 18, 2024. This Binding Term Sheet sets forth the principal terms upon which the Company and the Noteholders have agreed that the outstanding principal and accrued interest under the Notes will be converted to shares of Common Stock (the “ Conversion”). The parties agree that they will execute appropriate amendments to the Note Purchase Agreement, Notes, Pledge Agreement and Escrow Agreement (together, the “ Amendment”) providing for such conversion in accordance with this Binding Term Sheet, such Amendment to be effective upon approval of the Conversion at a special meeting of the Company’s stockholders to be called and held as soon as commercially practicable after the execution of this Binding Term Sheet (“ Stockholder Approval”).

| Conversion Terms Subject to Stockholder Approval: |     | The Company has scheduled a Special Stockholders’ Meeting for March 31, 2025, at which time the stockholders of the Company will be asked to approve the conversion terms. None of the Noteholders will be entitled to vote    
 for this measure.                                                                                                                                                                                                              |
|:--------------------------------------------------|:----|:-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Conversion Price:                                 |     | Outstanding Principal amount of the Notes will be converted into shares of Common Stock (“Conversion Shares”) at $0.65 per share, as adjusted for any stock split, reverse stock split, stock dividend, combination or         
 other recapitalization with respect to the Common Stock (the “Conversion Price”) as promptly as commercially practicable following Stockholder Approval. Any unpaid accrued interest under the Notes will be paid in cash upon 
 Conversion thereof. In connection with the Conversion, the Notes will be cancelled and all converting Noteholders’ rights to payments of principal, interest, bonus and other amounts in respect thereof will be               
 extinguished.                                                                                                                                                                                                                  |

B-1