Document:

ex_447447.htm

Exhibit 10.1

 

 

THIS NOTE AND THE CONVERSION SHARES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES LAWS. THIS NOTE AND THE CONVERSION SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE AND THE CONVERSION SHARES UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE COMPANY), IN A GENERALLY ACCEPTABLE FORM THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

 

 

	Issue Date: November 7, 2022	$400,000

 

STATERA BIOPHARMA, INC.

 

AMENDED AND RESTATED CONVERTIBLE NOTE

DUE MAY 1, 2024

 

 

FOR VALUE RECEIVED, Statera Biopharma, Inc. a Delaware corporation (the “Borrower” or the “Company”), promises to pay to Silverback Capital Corporation (the “Holder”) or its registered assigns or successors in interest, the sum of Four Hundred Thousand Dollars ($400,000), together with all accrued interest and other amounts due thereon, on May 1, 2024 (the “Maturity Date”), if not sooner paid.

 

WHEREAS, this Note is issued to the Holder in accordance with, and subject to the terms and conditions of, that certain Assignment of Promissory Note agreement dated as of event date herewith, by and between the Holder and Avenue Venture Opportunities Fund, L.P. (“AVOF”).

 

 

 

The following terms and conditions shall apply to this Convertible Note due May 1, 2024 (this “Note”):

 

 

ARTICLE I

INTEREST & AMORTIZATION

 

 

1.1    Contract Rate. Interest payable on this Note shall accrue at a variable rate per annum equal to the sum of (i) the greater of (A) the Prime Rate and (B) three and one-quarters percent (3.25%), plus (ii) seven and seventy-four one-hundredths percent (7.74%).

 

1.2    Payments. Payment of the aggregate principal amount outstanding under this Note (the “Principal Amount”), together with all accrued interest thereon shall be made on the Maturity Date.

 

 

 

 

ARTICLE II

CONVERSION REPAYMENT

 

2.1    Optional Conversion. Subject to the terms of this Article II, the Holder shall have the right, but not the obligation, at any time until the Maturity Date, to convert all or any portion of the outstanding Principal Amount, accrued interest and fees due and payable thereon into fully paid and nonassessable shares of Common Stock of the Borrower (the “Common Stock”) at the Conversion Price (as defined below). The shares of Common Stock to be issued upon such conversion are herein referred to as the “Conversion Shares.”

 

2.2    Calculation of Conversion Price. The “Conversion Price” shall mean the product obtained by multiplying 75% (representing a discount rate of 25%) by the Market Price (as defined herein). “Market Price” means the lowest Trading Price (as defined below) for the Common Stock during the five (5) Trading Day period preceding the Conversion Date inclusive of the day of the Conversion Date. “Trading Price” means, for any security as of any date, the lowest sale price as reported by a reliable reporting service (“Reporting Service designated by the Holder (i.e., Bloomberg). The Conversion Price shall be subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities, combinations, recapitalization, reclassifications, extraordinary distributions and similar events.

 

2.3    Conversion Limitation. Notwithstanding anything contained herein to the contrary, the Holder shall not be entitled to convert pursuant to the terms of this Note an amount that would be convertible into that number of Conversion Shares which would exceed the difference between the number of shares of Common Stock beneficially owned by such Holder and 4.99% of the outstanding shares of Common Stock of Borrower. For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its affiliates shall include the number of shares of Common Stock issuable upon conversion of this Note with respect to which the determination of such sentence is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (A) conversion of the remaining, nonconverted portion of this Note beneficially owned by the Holder or any of its affiliates and (B) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Notes) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its affiliates. Except as set forth in the preceding sentence, for purposes of this Section, beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act. To the extent that the limitation contained in this section applies, the determination of whether this Note is convertible (in relation to other securities owned by the Holder) and of which a portion of this Note is convertible shall be in the sole discretion of such Holder. To ensure compliance with this restriction, the Holder will be deemed to represent to the Company each time it delivers a Notice of Conversion that such Notice of Conversion has not violated the restrictions set forth in this paragraph and the Company shall have no obligation to verify or confirm the accuracy of such determination.

 

 

 

 

2.4    Mechanics of Holder’s Conversion. Subject to the terms of this Article II, this Note may be converted by the Holder in part from time to time after the Issue Date, by submitting to the Borrower a Notice of Conversion (whether by facsimile, as a Portable Document (PDF) file sent by electronic mail or other reasonable means of communication dispatched on the Conversion Date prior to 8:00 p.m., New York, New York time). On each Conversion Date (as hereinafter defined) and in accordance with its Notice of Conversion, the Holder shall make the appropriate reduction to the Principal Amount, accrued interest and fees as entered in its records and shall provide written notice thereof to the Borrower on the Conversion Date. Each date on which a Notice of Conversion is delivered or telecopied to Borrower in accordance with the provisions hereof shall be deemed a Conversion Date (the “Conversion Date”). Pursuant to the terms of the Notice of Conversion, Borrower will issue instructions to the transfer agent within two (2) business days of the Conversion Date and shall cause the transfer agent to transmit the certificates representing the Conversion Shares to the Holder by (i) physical delivery, (ii) crediting the account of the Holder with the transfer agent, or (iii) to the extent that the shares of Common Stock included in the Conversion Notice may then be resold by the Holder pursuant to (A) an effective and available registration statement or (B) Rule 144 promulgated by the Securities Exchange Commission under the Securities Act of 1933, as amended (the “Securities Act”), crediting the account of the Holder’s designated broker with the Depository Trust Corporation (“DTC”) through its Deposit Withdrawal Agent Commission (“DWAC”) system within two (2) business days after receipt by Borrower of the Notice of Conversion (the “Delivery Date”). In the case of the exercise of the conversion rights set forth herein, the conversion privilege shall be deemed to have been exercised, and the Conversion Shares issuable upon such conversion shall be deemed to have been issued, upon the date of receipt by Borrower of the Notice of Conversion. The Holder shall be treated for all purposes as the record holder of such Common Stock, unless the Holder provides Borrower written instructions to the contrary.

 

2.5    Exchange Cap. So long as the rules of the Nasdaq Stock Market (or another national securities exchange, if the Common Stock is re-listed, re-traded or re-quoted on another national securities exchange (the “Eligible Market”)) so require, the sum of the number of shares of Common Stock that may be issued under this Note shall be limited to 19.99% of the shares of Common Stock issued and outstanding immediately prior to the Issue Date (the “Exchange Cap”), unless stockholder approval is obtained prior to the issuance to issue more than the Exchange Cap. The Exchange Cap shall be appropriately adjusted for any reorganization, recapitalization, non- cash dividend, stock split, reverse stock split or other similar transaction in accordance with the rules of the Nasdaq Stock Market or another Eligible Market.

 

 

ARTICLE III

MISCELLANEOUS

 

3.1    Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder hereof in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

 

 

 

 

3.2    Voting Rights. The Holder shall have no voting rights with respect to the shares of the capital stock of the Company in its capacity as the holder of this Note, except as required by law.

 

3.2    Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by FedEx or other reputable express courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, emails or facsimile, addressed as set forth below. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by email or facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or(b) on the next business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be:

 

If to the Borrower, to:

 

Statera Biopharma, Inc.

4333 Corbett Drive, Suite 1082

Fort Collins, CO 80526

 

and email to: Mike.Handley@StateraBioPharma.com

 

If to the Holder:

 

Silverback Capital Corporation

documents@silverbackcap.com

 

 

 

3.3    Amendment Provision. Any term of this Note may be amended only with the written consent of the Holder and the Borrower. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented, and any successor instrument as it may be amended or supplemented.

 

3.4    Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to the benefit of the Holder and its successors and assigns, and may not be assigned by the Borrower without the prior written consent of the Holder, which consent may not be unreasonably withheld.

 

 

 

 

3.5    Prevailing Party and Costs. In the event any attorney is employed by any party with regard to any legal or equitable action, arbitration or other proceeding brought by such partyfor the enforcement of this Note or because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Note, the prevailing party in such proceeding will be entitled to recover from the other party reasonable attorneys' fees and other costs and expenses incurred, in addition to any other relief to which the prevailing party may be entitled.

 

3.6    Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by any of the transaction documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of New York, Borough of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the transaction documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, or such New York Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Note or the transactions contemplated hereby. If either party shall commence an action or proceeding to enforce any provisions of this Note, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorney fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.

 

3.7    Maximum Payments. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other charges in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or other charges hereunder exceed the maximum permitted by such law, any payments in excess of such maximum shall be credited against amounts owed by Borrower to the Holder and thus refunded to the Borrower.

 

3.8    Construction. Borrower acknowledges that its legal counsel participated in the preparation of this Note and, therefore, stipulates that the rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation of this Note to favor any party against the other.

 

3.9    Enforcement of Rights and Remedies. Holder agrees that it will not exercise any right or remedy under, or arising out of or related to this Note without the prior written consent of AVOF, which may be granted or withheld in AVOF’s sole discretion.

 

 

 

 

IN WITNESS WHEREOF, Borrower has caused this Convertible Note to be signed in its name effective as of the Effective Date.

 

 

	
			 

				
			BORROWER:

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	Statera Biopharma, Inc.	 
	 	 	 	 
	 	 	 	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By:

				
			/s/ Michael K. Handley

				
			 

			
	 	Name:	Michael K. Handley	 
	 	Title:	Chief Executive Officer, Directorultimax_109.htm

 
 EXHIBIT 10.9
  
 VOTING AGREEMENT
  
 THIS VOTING AGREEMENT (the “Agreement”) is made and entered into as of this 20th day of September 2022, by and among Ultimax Digital, Inc., a Delaware corporation (the “Company”), each individual and entity listed on Schedule A (each, a “Key Holder” and collectively, the “Key Holders”).
  
 The parties desire to enter into this Agreement to set forth their agreements and understandings with respect to, among other things, how shares of the Company’s capital stock held by them will be voted in connection with any and all matters concerning a vote of the Company’s stockholders.
  
 NOW, THEREFORE, the parties agree as follows:
  
 1. General. Each Key Holder agrees to vote, or cause to be voted, all Shares (as defined below) owned by such Key Holder, or over which such Key Holder has voting control, from time to time and at all times, in whatever manner as shall be necessary to carry into effect the intent of this Agreement. For purposes of this Agreement, the term “Shares” shall mean and include any securities of the Company the holders of which are entitled to vote in connection with any and all matters concerning a vote of the Company’s stockholders, including without limitation, all shares of common stock now owned or subsequently acquired by a Key Holder, however acquired, whether through stock splits, stock dividends, reclassifications, recapitalizations, similar events or otherwise.
  
 2. Voting Provisions. (a) Each Key Holder agrees that all Shares owned by such Key Holder, or over which such Key Holder has voting control, from time to time and at all times, at each annual or special meeting of Company’s stockholders or pursuant to any written consent of the Company’s stockholders, shall be voted by the Proxy, as defined below, in the manner and to the effect determined by said Proxy in his sole and absolute discretion.
  
 (b) Each Key Holder is entering into this Agreement in his or its capacity as the holder of capital stock of the Company. Any other provision of this Agreement notwithstanding, to the extent a Key Holder serves as an officer or director of the Company, nothing contained herein shall limit his ability to exercise his ordinary and customary duties as an officer or director of the Company, including, without limitation, the exercise of his fiduciary obligations to the Company and its stockholders.
  
 (c) Any other provision of this Agreement notwithstanding, the Company and each Key Holder’s obligations under this Agreement is subject in all respects to the applicable law (including, without limitation, the directors’ fiduciary duties), the rules and regulations of the Securities and Exchange Commission and the listing requirements or standards of the NASDAQ Stock Market LLC or the requirements or standards of any other exchange, system or market on which the stock of the Company is principally listed.
  
  
 	 
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 3. Irrevocable Proxy. Each Key Holder hereby constitutes and appoints the Chief Executive Officer of the Company (the “Proxy”) as its proxy with respect to the matters set forth herein, and hereby authorizes the Proxy to represent and to vote his or its Shares in the manner and to the effect determined by said Proxy in his sole and absolute discretion. The proxy granted pursuant to the immediately preceding sentence is given in consideration of the agreements and covenants of the Company and the parties in connection with this Agreement and, as such, is coupled with an interest and shall be irrevocable unless and until this Agreement terminates or expires in accordance herewith.
  
 4. Limitation of Proxy’s Liability. The Proxy shall not incur any liability or responsibility by reason of any error of judgment, mistake of law or other mistake, or for any act or omission of any agent or attorney, or for any misconstruction of this Agreement, or for any action of any kind taken or omitted hereunder or believed by him to be in accordance with the provisions and intents hereof.
  
 5. Termination. This Agreement shall terminate upon the earliest to occur of the occurrence of any one of the following events:
  
 (a) the first (1st) anniversary of the Company’s Initial Public Offering Date of this Agreement;
  
 (b) the reorganization, merger, consolidation or similar corporate transaction of the Company whereby the persons who were the shareholders of the Company immediately prior to the transaction do not, immediately thereafter, own more than 50% of the combined voting power entitled to vote;
  
 (c) the sale of all, or substantially all, of the assets of the Company; or
  
 (d) the termination of this Agreement by the Proxy.
  
 6. Subsequent Holders of Shares. Each Key Holder agrees not to transfer any interest in their respective Shares unless the transferee executes and delivers to Proxy an agreement in form and in substance substantially similar to this Agreement; provided, however, a purchaser of any Shares that are purchased in the market in a Rule 144 transaction or pursuant to a public offering registered on a Form S-1, Form S-4, Form S-8 or similar form required by the Securities Exchange Commission for the public distribution of securities shall not be subject to this Agreement.
  
 7. Successor Proxy. In the event that the Proxy is unable or unwilling to serve as the Proxy, a successor Proxy may be appointed by the Proxy at his discretion, or if the Proxy is unable to make such appointment due to his death or incapacity to act, by the consent of the successors to the Proxy’s individual shares of Stock that hold a majority interest in such shares. A successor Proxy shall be vested with all the rights, powers and authority as if originally named in this Agreement.
  
  
 	 
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 8. Miscellaneous.
  
 8.1. Successors and Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.
  
 8.2. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, regardless of the laws that might otherwise govern under applicable principles of conflicts of law.
  
 8.3. Counterparts; Facsimile. This Agreement may be executed and delivered by facsimile signature and in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
  
 8.4. Titles and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.
  
 8.5. Severability. The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.
  
 8.6. Entire Agreement. This Agreement constitutes the full and entire understanding and agreement between the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties are expressly canceled.
  
 8.7. Stock Splits, Stock Dividends, etc. In the event of any issuance of Shares of the Company’s voting securities hereafter to any of the Key Holders (including, without limitation, in connection with any stock split, stock dividend, recapitalization, reorganization, or the like), such Shares shall become subject to this Agreement.
  
 8.8. Further Assurances. At any time or from time to time after the date hereof, the parties agree to cooperate with each other, and at the request of any other party, to execute and deliver any further instruments or documents and to take all such further action as the other party may reasonably request in order to evidence or effectuate the consummation of the transactions contemplated hereby and to otherwise carry out the intent of the parties hereunder.
  
  
 	 
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 IN WITNESS WHEREOF, the parties have executed this Voting Agreement as of the date first written above.
  
  
 	 THE COMPANY:
  
 ULTIMAX DIGITAL, INC.
  
	  

	 By:
	 /s/ Paul Goodman
	  

	 Title:
	 President
	  

 
 
  
 
 [Additional Signature Pages Follow]
  
  
 	 
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 Signature Page to Voting Agreement
  
  
 		 KEY HOLDERS:
	  

	  
	  
	  
	  

	  
	 /s/ Jesse Sutton
	  

	  
	 Jesse Sutton
	  

	  
	  
	  
	  

	  
	 /s/ Paul Goodman
	  

	  
	 Paul Goodman
	  

	  
	  
	  
	  

	  
	 Gideon 718 Equity Trust
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Lisa Tirnauer
	  

	  
	 Name:
	 Lisa Tirnauer
	  

	  
	 Title:
	 Trustee
	  

	  
	  
	  
	  

	  
	 Aurora 1 Equity Trust
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Suri Rosenbaum
	  

	  
	 Name:
	 Suri Rosenbaum
	  

	  
	 Title:
	 Trustee
	  

	  
	  
	  
	  

	  
	 Jomar Irrevocable Trust
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Hyman Stramer
	  

	  
	 Name:
	 Hyman Stramer
	  

	  
	 Title:
	 Trustee
	  

	  
	  
	  
	  

	  
	 Symar Irrevocable Trust
	  

	  
	  
	  
	  

	  
	 By:
	  
	  

	  
	 By:
	 /s/ Hyman Stramer
	  

	  
	 Name:
	 Hyman Stramer
	  

	  
	 Title:
	 Trustee
	  

	  
	  
	  
	  

	  
	 Pamar Irrevocable Trust
	  

	  
	  
	  
	  

	  
	 By:
	  
	  

	  
	 Name:
	  
	  

	  
	 Title:
	 Trustee
	  

 
 
  
 
  
 	 
	 5

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