Document:

EX-10.1

 Exhibit 10.1 

THIS NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE
COMPLIES WITH THE ACT AND ANY APPLICABLE STATE SECURITIES LAWS. 
 IMMUNITYBIO, INC. 

PROMISSORY NOTE 
  

			
	 $300,000,000
	  	December 17, 2021

 FOR VALUE RECEIVED, ImmunityBio, Inc., a Delaware corporation (the “Company”) promises
to pay to Nant Capital, LLC or its registered assigns (“Investor”), in lawful money of the United States of America the principal sum of Three Hundred Million Dollars ($300,000,000), or such lesser amount as shall equal the
outstanding principal amount hereof, together with interest from the date of this Promissory Note (this “Note”) on the unpaid principal balance at a rate equal to the Term SOFR Rate (as defined below) plus 5.4% per annum
which shall be adjusted to the then current SOFR on each Interest Payment Date, computed on the basis of the actual number of days elapsed and a year of 365 days. All unpaid principal, together with any then unpaid and accrued interest and other
amounts payable hereunder, shall be due and payable on the earlier of (i) December 17, 2022 (the “Maturity Date”), or (ii) when, upon the occurrence and during the continuance of an Event of Default, such amounts
are declared due and payable by Investor or made automatically due and payable, in each case, in accordance with the terms hereof. 
 The
following is a statement of the rights of Investor and the conditions to which this Note is subject, and to which Investor, by the acceptance of this Note, agrees: 

1. Payments. 

(a) Interest. Accrued interest on this Note shall be payable quarterly, in arrears, on each Interest Payment Date. 

(b) Voluntary Prepayment. Upon five business days’ prior written notice to Investor, the Company may prepay this Note in whole or
in part, provided that any such prepayment will be applied first to the payment of accrued but unpaid interest on this Note and second, if the amount of prepayment exceeds the amount of all such interest, to the payment of outstanding
principal of this Note. 
 2. Events of Default. The occurrence of any of the following shall constitute an “Event
of Default” under this Note. 
 (a) Failure to Pay. The Company shall fail to pay the principal payment, plus any accrued
and unpaid interest, on the Maturity Date; 

  
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 (b) Voluntary Bankruptcy or Insolvency Proceedings. The Company shall (i) apply
for or consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) admit in writing its inability to pay its debts generally as they mature, (iii) make a
general assignment for the benefit of its or any of its creditors, (iv) be dissolved or liquidated, (v) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts
under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding commenced against
it, or (vi) take any action for the purpose of effecting any of the foregoing; or 
 (c) Involuntary Bankruptcy or Insolvency
Proceedings. Proceedings for the appointment of a receiver, trustee, liquidator or custodian of the Company, or of all or a substantial part of the property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization
or other relief with respect to the Company or any of its subsidiaries, if any, or the debts thereof under any bankruptcy, insolvency or other similar law now or hereafter in effect shall be commenced and an order for relief entered or such
proceeding shall not be dismissed or discharged within 45 days of commencement. 
 3. Rights of Investor upon Default. Upon the
occurrence of any Event of Default (other than an Event of Default described in Section 2(b) or 2(c)) and at any time thereafter during the continuance of such Event of Default, Investor may, by written notice to the
Company, declare all outstanding Obligations payable by the Company hereunder to be immediately due and payable without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived, anything contained herein
to the contrary notwithstanding. Upon the occurrence of any Event of Default described in Section 2(b) or 2(c), immediately and without notice, all outstanding Obligations payable by the Company hereunder shall
automatically become immediately due and payable, without presentment, demand, protest or any other notice of any kind, all of which are hereby expressly waived, anything contained herein to the contrary notwithstanding. In addition to the foregoing
remedies, upon the occurrence and during the continuance of any Event of Default, Investor may exercise any other right, power or remedy otherwise permitted to it by law, either by suit in equity or by action at law, or both. 

4. Conversion. 
 (a)
Common Stock. Subject to the Company increasing its number of authorized shares of Common Stock, on or after the Maturity Date, if there is an Event of Default as described in Section 2(a) the Company has the right, at its sole
option, to convert the outstanding principal amount of this Note and all accrued and unpaid interest on this Note into fully paid and nonassessable shares of the Company’s common stock at a price per share equal to $5.67 (subject to appropriate
adjustment from time to time for any stock dividend, stock split, combination of shares, reorganization, recapitalization, reclassification or other similar event). 

(b) Fractional Shares; Interest; Effect of Conversion. No fractional shares shall be issued upon conversion of this Note. In lieu
of the Company issuing any fractional shares to the Investor upon the conversion of this Note, the Company shall pay to Investor an amount equal to the product obtained by multiplying the applicable conversion price by the fraction of a share
not issued pursuant to the previous sentence. In addition, to the extent not converted into shares of capital stock, the Company shall pay to Investor any interest accrued on the amount converted and on the amount to be paid by the Company pursuant
to the previous sentence. Upon conversion of this Note in full and the payment of the amounts specified in this paragraph, the Company shall be forever released from all its obligations and liabilities under this Note and this Note shall be deemed
of no further force or effect, whether or not the original of this Note has been delivered to the Company for cancellation. 

  
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 5. Representations and Warranties of Investor. By acceptance of this Note,
Investor represents and warrants to the Company that Investor has full legal capacity, power and authority to execute and deliver this Note and to perform its obligations hereunder. This Note constitutes valid and binding obligations of Investor,
enforceable in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors’ rights generally and general principles of equity. 

6. Origination Fee. In connection with, and upon the funding of the Note, the Company shall pay to Investor an origination fee of
one-half of one percent (0.5%) of Three Hundred Million Dollars ($300,000,000). 
 7.
Definitions. As used in this Note, the following capitalized terms have the following meanings: 
 “Event of
Default” has the meaning given in Section 2 hereof. 
 “Investor” shall mean
the Person specified in the introductory paragraph of this Note or any Person who shall at the time be the registered holder of this Note. 

“Interest Payment Date” means the 17th day of each March, June,
September and December, commencing with March 17, 2022. 
 “Obligations” shall mean and include all loans,
advances, debts, liabilities and obligations, howsoever arising, owed by the Company to Investor of every kind and description, now existing or hereafter arising under or pursuant to the terms of this Note, including, all interest, fees, charges,
expenses, attorneys’ fees and costs and accountants’ fees and costs chargeable to and payable by the Company hereunder and thereunder, in each case, whether direct or indirect, absolute or contingent, due or to become due, and whether or
not arising after the commencement of a proceeding under Title 11 of the United States Code (11 U. S. C. Section 101 et seq.), as amended from time to time (including post-petition interest) and whether or not allowed or allowable
as a claim in any such proceeding. 
 “Person” shall mean and include an individual, a partnership, a corporation
(including a business trust), a joint stock company, a limited liability company, an unincorporated association, a joint venture or other entity or a governmental authority. 

“CME Term SOFR Administrator” means CME Group Benchmark Administration Limited as administrator of the forward-looking
term Secured Overnight Financing Rate (SOFR) (or a successor administrator). 
 “Interest Period” means (a) the
period commencing on the date of this Note and ending on the numerically corresponding day in the calendar month that is three months thereafter and (b) each three-month period thereafter ending on an Interest Payment Date; provided,
that (i) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which
case such Interest Period shall end on the next preceding Business Day, and (ii) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last
calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period. 

“Term SOFR Determination Day” has the meaning assigned to it under the definition of Term SOFR Reference Rate. 

  
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 “Term SOFR Rate” means, for any tenor comparable to the applicable
Interest Period, the Term SOFR Reference Rate at approximately 5:00 a.m., Chicago time, two U.S. Securities Business Days prior to the commencement of such tenor comparable to the applicable Interest Period, as such rate is published by the CME Term
SOFR Administrator. 
 “Term SOFR Reference Rate” means, for any day and time (such day, the “Term SOFR
Determination Day”), for any tenor comparable to the applicable Interest Period, the rate per annum reasonably determined by the Company as the forward-looking term rate based on SOFR. If by 5:00 pm (New York City time) on the fifth
(5th) U.S. Government Securities Business Day immediately following any Term SOFR Determination Day, the “Term SOFR Reference Rate” for the applicable tenor has not been published by the CME Term SOFR Administrator, then the Term SOFR
Reference Rate for such Term SOFR Determination Day will be the Term SOFR Reference Rate as published in respect of the first preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate was published by the CME Term
SOFR Administrator. 
 “U.S. Government Securities Business Day” means any day except for (i) a Saturday,
(ii) a Sunday or (iii) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government
securities. 
 8. Miscellaneous. 

(a) Waiver and Amendment. Any provision of this Note may be amended, waived or modified upon the written consent of the Company and
Investor. 
 (b) Notices. All notices and other communications required or permitted hereunder shall be in writing and shall be mailed
by registered or certified mail, postage prepaid, sent by facsimile or electronic mail (if to Investor) or otherwise delivered by hand, messenger or courier service addressed: 

(i) if to Investor, to Investor’s address, facsimile number or electronic mail address as shown in the Company’s records, as may be
updated in accordance with the provisions hereof, or, until such holder so furnishes an address, facsimile number or electronic mail address to the Company, then to the address, facsimile number or electronic mail address of the last holder of this
Note for which the Company has contact information in its records; or 
 (ii) if to the Company, to the attention of the Chief Executive
Officer or Chief Financial Officer of the Company at 3530 John Hopkins Court San Diego, CA 92121, or at such other current address as the Company shall have furnished to Investor, with a copy (which shall not constitute notice) to Martin J. Waters,
Wilson Sonsini Goodrich & Rosati, P.C., 12235 El Camino Real, Suite 200, San Diego, CA 92130-3002. 
 Each such notice or other
communication shall for all purposes of this Note be treated as effective or having been given (i) if delivered by hand, messenger or courier service, when delivered (or if sent via a nationally-recognized overnight courier service, freight
prepaid, specifying next-business-day delivery, one business day after deposit with the courier), or (ii) if sent via mail, at the earlier of its receipt or five days after the same has been deposited in
a regularly-maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid, or (iii) if sent via facsimile, upon confirmation of facsimile transfer or, if sent via electronic mail, upon confirmation of
delivery when directed to the relevant electronic mail address, if sent during normal business hours of the recipient, or if not sent during normal business hours of the recipient, then on the recipient’s next business day. In the event of any
conflict between the Company’s books and records and this Note or any notice delivered hereunder, the Company’s books and records will control absent fraud or error. 

  
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 (c) Payment. Unless converted into the Company’s equity securities pursuant to
the terms hereof, payment shall be made in lawful tender of the United States. 
 (d) Default Rate; Usury. During any period prior to
the Maturity Date in which a non-payment by the Company of the interest earned on the Note has occurred and is continuing, or an Event of Default has occurred and is continuing, the Company shall pay interest
on the unpaid principal balance hereof at a rate per annum equal to the rate otherwise applicable hereunder of eight percent (8%). In the event any interest is paid on this Note which is deemed to be in excess of the then legal maximum rate, then
that portion of the interest payment representing an amount in excess of the then legal maximum rate shall be deemed a payment of principal and applied against the principal of this Note. 

(e) Waivers. The Company hereby waives notice of default, presentment or demand for payment, protest or notice of nonpayment or dishonor
and all other notices or demands relative to this instrument. 
 (f) Governing Law. This Note and all actions arising out of or in
connection with this Note shall be governed by and construed in accordance with the laws of the State of California, without regard to the conflicts of law provisions of the State of California, or of any other state. 

(g) Restriction on Transferability. This Note and the rights and obligations hereunder may not be assigned by either the Investor or the
Company without the prior written consent of the other party. 
 (h) Registration. The Company or its agent will keep books for the
registration and registration of transfer of the Note. Subject to this section and any other restrictions on or conditions to transfer set forth in the Note, the Note may be transferred only upon its surrender to the Company for registration of
transfer, duly endorsed, or accompanied by a duly executed written instrument of transfer in form satisfactory to the Company. Prior to registration of any such transfer, the Company shall treat the person in whose name the Note is registered as the
owner and holder of the Note for all purposes, including payment of principal and interest, and the Company shall not be affected by notice to the contrary. 

(signature page follows) 

  
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 The Company has caused this Note to be issued as of the date first written above. 

 

			
	IMMUNITYBIO, INC.,
	a Delaware corporation
		
	By:	 	 /s/ Richard Adcock

	Name: Richard Adcock
	Title: Chief Executive Officer and President

 (Signature page for Note)Exhibit 4.2

 

DESCRIPTION OF CAPITAL STOCK
OF MAGYAR BANCORP, INC.

 

The summary of the general terms
and provisions of Magyar Bancorp, Inc.’s (the “Company”) capital stock set forth below does not purport to be complete
and is subject to and qualified by reference to the Company’s Certificate of Incorporation, as amended, and Bylaws, each of which
is incorporated by reference as an exhibit to the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission
of which this Exhibit is a part. For additional information, please read the Company’s Certificate of Incorporation, as amended,
and Bylaws and the applicable provisions of the Delaware General Corporation Law.

 

GENERAL

 

Magyar Bancorp, Inc. is authorized
to issue 14,000,000 shares of common stock having a par value of $0.01 per share and 500,000 shares of serial preferred stock. Each share
of Magyar Bancorp, Inc.’s common stock has the same relative rights as, and are identical in all respects with, each other share
of common stock.

 

The Board of Directors can, without
stockholder approval, issue additional shares of common stock. Magyar Bancorp, Inc.’s issuance of additional shares of common stock
could dilute the voting strength of the holders of the common stock and may assist management in impeding an unfriendly takeover or attempted
change in control.

 

COMMON STOCK

 

DISTRIBUTIONS. Magyar Bancorp,
Inc. can pay dividends if, as and when declared by its Board of Directors, subject to compliance with limitations that are imposed by
law. The holders of common stock of Magyar Bancorp, Inc. are entitled to receive and share equally in such dividends as may be declared
by the Board of Directors of Magyar Bancorp, Inc. out of funds legally available therefor. Dividends from Magyar Bancorp, Inc. depend,
in part, upon the receipt of dividends from Magyar Bank. Pursuant to our certificate of incorporation, as amended, Magyar Bancorp, Inc.
is authorized to issue preferred stock. If Magyar Bancorp, Inc. does issue preferred stock, the holders thereof may have a priority over
the holders of the common stock with respect to dividends.

 

VOTING RIGHTS. The holders of
common stock of Magyar Bancorp, Inc. possess exclusive voting rights in Magyar Bancorp, Inc. Each holder of common stock is entitled to
one vote per share and does not have any right to cumulate votes in the election of directors. Under certain circumstances, shares in
excess of 10% of the issued and outstanding shares of common stock may be considered “Excess Shares” and, accordingly, will
not be entitled to vote. If Magyar Bancorp, Inc. issues preferred stock, holders of the preferred stock may also possess voting rights.

 

LIQUIDATION. In the event of any
liquidation, dissolution or winding up of Magyar Bank, Magyar Bancorp, Inc., as holder of Magyar Bank’s capital stock, would be
entitled to receive, after payment or provision for payment of all debts and liabilities of Magyar Bank, including all deposit accounts
and accrued interest thereon, all assets of Magyar Bank available for distribution. In the event of liquidation, dissolution or winding
up of Magyar Bancorp, Inc., the holders of its common stock would be entitled to receive, after payment or provision for payment of all
its debts and liabilities, all of the assets of Magyar Bancorp, Inc. available for distribution. If preferred stock is issued, the holders
thereof may have a priority over the holders of the common stock in the event of liquidation or dissolution.

 

RIGHTS TO BUY ADDITIONAL SHARES.
Holders of the common stock of Magyar Bancorp, Inc. are not entitled to preemptive rights with respect to any shares that may be issued.
Preemptive rights are the priority right to buy additional shares if Magyar Bancorp, Inc. issues more shares in the future. The common
stock is not subject to redemption.

 

PREFERRED STOCK

 

No shares of preferred stock are
currently outstanding. Preferred stock may be issued with such preferences and designations as the Board of Directors may from time to
time determine. The Board of Directors can, without stockholder approval, issue preferred stock with voting, dividend, liquidation and
conversion rights, which could dilute the voting strength of the holders of the common stock and may assist management in impeding an
unfriendly takeover or attempted change in control.

 

    95 

     

    

CERTAIN
CERTIFICATE OF INCORPORATION AND BYLAW PROVISIONS AFFECTING STOCK 

 

Magyar
Bancorp, Inc.’s Certificate of Incorporation, as amended, and Bylaws contain several provisions that may make Magyar Bancorp, Inc.
a less attractive target for an acquisition of control by anyone who does not have the support of Magyar Bancorp, Inc.’s board of
directors. Such provisions include, among other things, the requirement of a supermajority vote of stockholders or directors to approve
certain business combinations, several special procedural rules and a vote limitation provision. Additionally, our Bylaws provide that
we will indemnify our directors and executive officers to the fullest extent permitted by law. The foregoing is qualified in its entirely
by reference to Magyar Bancorp, Inc.’s Certificate of Incorporation, as amended, and Bylaws, both of which are on file with the
SEC.

 

RESTRICTIONS
ON OWNERSHIP

 

Under
the federal Change in Bank Control Act, a notice must be submitted to the Federal Reserve if any person (including a company), or group
acting in concert, seeks to acquire “control” of a bank holding company or bank. An acquisition of “control” can
occur upon the acquisition of 10% or more of a class of voting securities of a bank holding company or bank or as otherwise defined by
the Federal Reserve. Under the Change in Bank Control Act, the Federal Reserve has 60 days from the filing of a complete notice to act,
taking into consideration certain factors, including the financial and managerial resources of the acquirer and the anti-trust effects
of the acquisition.

    96

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