Company: ATLN
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006537
Chunk: 494

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-24
Form: 424B3
Chunk 494
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 respect of the shares of S360 Holdings Ltd. pledged pursuant thereto (as amended, restated, supplemented or otherwise modified from time to time, the “ Existing Share Mortgage ”), and (iv) the other Security Documents (as defined in the Purchase Agreement) (collectively, with the Security Agreement, the Pledge Agreement and the Existing Share Mortgage, the “ Security Instruments ”); WHEREAS, the Company entered into that certain Agreement and Plan of Merger (the “ Merger Agreement ”), dated as of November 1, 2024, by and among Atlantic International Corp (“ Atlantic ”), A36 Merger Sub Inc., a wholly-owned subsidiary of Atlantic, and the Company; and WHEREAS, pursuant to Section 3.2(f) of the Merger Agreement, at or prior to the Closing, the Company is obligated to deliver to Atlantic this (x) Conversion Agreement and Waiver (this “ Agreement ”) and (y) that certain Lock-Up Agreement (as defined herein), whereby: (i) all Outstanding Interest will 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. Convers ion 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