Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 506

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 506
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 be waived or forgiven; and (ii) all Outstanding Principal will be converted into 5,600,000 shares of newly designated Series I preferred stock of the Company, as adjusted pursuant to Section 3 below (“ Company Preferred Stock ”) in accordance with this Agreement, and (iii) each share of Company Preferred Stock will be converted into one share of Company Common Stock, which will then be converted into Merger Consideration as provided for in the Merger Agreement. Now, therefore , in consideration of the premises and mutual covenants and obligations hereinafter set forth, the parties hereto, intending legally to be bound, hereby agree as follows: 1. Definitions . Capitalized terms used herein but not otherwise defined herein shall have the respective meanings given such terms in the Merger Agreement. Annex C-1 2. Conversion and Waiver . In connection with Sections 2.2(a) and 3.2(f) of the Merger Agreement, immediately prior to the Closing (the “ Effective Time ”), Jackson hereby expressly agrees to: (i) convert all Outstanding Principal into the Company Preferred Stock, which shall have the terms and characteristics set forth in the Certificate of Designation of Preferences, Rights and Limitations of Series I Preferred Stock, in the form of Exhibit A attached hereto; (ii) waive all Outstanding Interest; and (iii) deliver that certain lock-up agreement (the “ Lock-Up Agreement ”) as related to certain shares of Atlantic Common Stock. 3. Additional Pro Rata Shares . Notwithstanding anything to the contrary in the Merger Agreement, if the average of the last closing price of Atlantic Common Stock (as reported on the Nasdaq Stock Market LLC) over the five (5) trading days immediately preceding the date of the Closing (the “ Average Closing Price ”) is below $5.00, then Atlantic shall issue to Jackson such number of additional shares of Atlantic Common Stock equal to (i) 5,600,000 multiplied by the quotient of $5.00 and the Average Closing Price, minus (ii) 5,600,000 (the “ Pro Rata Shares ”), which such Pro Rata Shares, if issued, shall be subject to the Lock-Up Period (as defined in the Lock-Up Agreement). 4. Company Representations . a) Authority; Authorization; Execution . The Company has all requisite corporate power and authority to execute and deliver this Agreement and any related documents to which the Company is a party, to perform the Company’s obligations hereunder