Document:

ras-ex102_58.htm

Exhibit 10.2

 

Termination Agreement

This TERMINATION AGREEMENT (this “Agreement”) is effective as of the 27th day of June 2018, by and among RAIT Financial Trust, a real estate investment trust formed and existing under the laws of the State of Maryland (“RAIT”), RAIT Partnership, L.P., a limited partnership formed and existing under the laws of the State of Delaware (“RAIT Partnership”), Taberna Realty Finance Trust, a real estate investment trust formed and existing under the laws of the State of Maryland (“Taberna”), and RAIT Asset Holdings IV, LLC, a limited liability company formed and existing under the laws of the State of Delaware (“NewSub” and, together with RAIT, RAIT Partnership and Taberna, collectively, the “RAIT Parties”), and ARS VI Investor I, LP, a limited partnership formed and existing under the laws of the State of Delaware, formerly known as ARS VI Investor I, LLC (“Investor”).  Each of the RAIT Parties and Investor is sometimes referred to herein as a “Party” and collectively as the “Parties.”

 

WHEREAS, reference is made to that certain Securities Purchase Agreement, dated as of October 1, 2012 by and among the RAIT Parties and Investor, as amended by the Amendment thereto dated September 30, 2015 (as amended, the “Securities Purchase Agreement”) and (ii) the Related Documents (as defined in the Securities Purchase Agreement);

WHEREAS, the RAIT Parties and Investor are party to that certain Consent and Acknowledgement Dated as of June 12, 2018 re Extension Agreement Dated as of March 12, 2018 (the “Consent and Acknowledgement”), modifying that certain Extension Agreement, dated as of March 12, 2018, as amended by the letter agreement dated June 8, 2018 (collectively, the “Extension Agreement”), pursuant to which the RAIT Parties and Investor agreed to consummate a series of transactions, including with respect to (i) the Securities Purchase Agreement, (ii) the Related Documents, (iii) the Series D Preferred Shares and (iv) the Subsidiary Preferred Units (collectively, with the Series E Preferred Shares, the “Prior Agreements” and, together with the Consent and Acknowledgement and the Extension Agreement, the “Existing Agreements”); 

 

WHEREAS, in furtherance of the transactions contemplated by the Consent and Acknowledgement and the Extension Agreement (the “Transactions”), the RAIT Parties and Investor desire to terminate their respective rights and obligations under the Prior Agreements; and

 

WHEREAS, capitalized terms used but not otherwise defined herein shall have the meanings ascribed thereto in the Securities Purchase Agreement.

	

	
 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and provisions herein set forth, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties, upon the terms and subject to the conditions contained herein, hereby agree as follows: 

	
1.
	
Acknowledgement of Transactions. Investor hereby acknowledges (a) payment to the Investor of all amounts to which it is entitled pursuant to the Extension Agreement, as modified by the Consent and Acknowledgment, including, without limitation, under Sections 1.b.) iv. and 1.b.) v. thereof, and (b) the consummation of the transactions contemplated by the Redemption and Exchange Agreement, dated as of the date hereof (the “Redemption and Exchange 

1

 

 

		
Agreement”), by and among RAIT, NewSub and the Investor, each of which was a condition precedent to the effectiveness of this Agreement. 

	
2.
	
Termination of Prior Agreements. Effective as of the date hereof, (a) each of the Prior Agreements is hereby terminated in full, and none of the Parties will have any rights or obligations thereunder; and (b) the Parties hereby irrevocably and unconditionally waive and relinquish their rights under each Prior Agreement, provided, however, that RAIT Partnership’s interest in the LLC Agreement shall remain in full force and effect.  For the avoidance of doubt, nothing in this Section 2 shall be deemed to terminate any confidentiality obligations of Investor in favor of any of the RAIT Parties contained in the confidentiality agreements dated as of January 19, 2018 and February 22, 2018, which shall survive in accordance with their respective terms. 

	
3.
	
Notice Requirements. The Parties acknowledge and agree that all advance notice requirements, if any, under any Prior Agreement have been satisfied or otherwise waived by the Parties as of the date hereof.

4.Release by RAIT Parties.  Effective as of the date hereof, the RAIT Parties, for themselves and their past, present and future Affiliates and their and such Affiliates’ respective past, present and future officers, directors, employees, members, partners, equityholders, managers, agents, heirs, executors, legal and other representatives, predecessors, successors and assigns, and any and all other persons claiming rights through the RAIT Parties (the RAIT Parties and such other persons, collectively, the “RAIT Releasing Parties” and, each, a “RAIT Releasing Party”) hereby forever fully and irrevocably release and discharge Investor and each of its predecessors, successors, direct or indirect subsidiaries and past and present equityholders (direct and indirect), members, managers, directors, officers, employees, agents, representatives and Affiliates (collectively, the “Investor Released Parties”) from any and all claims, rights, demands, offsets, causes of action, losses, damages, actions, suits, proceedings, controversies, disputes, agreements, obligations, liabilities, duties, remedies, accounts, sums of money, indebtedness, expenses (including, without limitation, attorneys’ fees and costs), covenants, contracts, agreements and indemnities (hereinafter collectively referred to as “Claims”), of any and every kind and description, whether known or unknown, suspected or unsuspected, foreseen or unforeseen, real or imaginary, actual or potential, whether or not well founded in fact or in law, and whether arising at law or equity, in each case which any and/or all of the RAIT Releasing Parties ever had, now have or hereafter can, shall or may have under or otherwise in connection with the Existing Agreements, and hereby irrevocably agrees to refrain from directly or indirectly asserting any claim or demand or commencing (or causing to be commenced) any proceeding of any kind against any Investor Released Party based upon any such Claim; provided that nothing set forth herein shall impair or otherwise affect in any way the rights of the RAIT Parties under this Agreement, the Extension Agreement, as modified by the Consent and Acknowledgement, or the Redemption and Exchange Agreement. 

 

5.Release by Investor. Effective as of the date hereof, Investor, for itself and its past, present and future Affiliates and its and such Affiliates’ respective past, present and future officers, directors, employees, members, partners, equityholders, managers, agents, heirs, executors, legal and other representatives, predecessors, successors and assigns, and any and all other persons claiming rights through Investor (Investor and such other persons, collectively, the “Investor Releasing Parties” and, each, an “Investor Releasing Party”) hereby forever fully and irrevocably 

2

 

 

release and discharge the RAIT Parties and each of their respective predecessors, successors, direct or indirect subsidiaries and past and present equityholders (direct and indirect), members, managers, directors, officers, employees, agents, representatives and Affiliates (collectively, the “RAIT Released Parties”) from any and all Claims, of any and every kind and description, whether known or unknown, suspected or unsuspected, foreseen or unforeseen, real or imaginary, actual or potential, whether or not well founded in fact or in law, and whether arising at law or equity, in each case which any and/or all of the Investor Releasing Parties ever had, now have or hereafter can, shall or may have under or otherwise in connection with the Existing Agreements, and hereby irrevocably agrees to refrain from directly or indirectly asserting any claim or demand or commencing (or causing to be commenced) any proceeding of any kind against any RAIT Released Party based upon any such Claim; provided that nothing set forth herein shall impair or otherwise affect in any way (i) the rights of the Investor under this Agreement, the Extension Agreement, as modified by the Consent and Acknowledgment, including, without limitation, the right of the Investor to the payment of all amounts to which it is entitled pursuant to the terms thereof, and the Redemption and Exchange Agreement, (ii) the rights of the Investor in respect of the New Shares issued to the Investor pursuant to the terms of (and as defined in) the Redemption and Exchange Agreement, or (iii) the rights of the Investor Board Designee under the Trustee Indemnification Agreement between RAIT and the Investor Board Designee, as well as any other rights of the Investor Board Designee to indemnification, exculpation and advancement of expenses now existing in favor of the Investor Board Designee under RAIT’s Organizational Documents, in each case, with respect to any matters occurring on or prior to the date hereof.

	
6.
	
Consideration.  The Parties each acknowledge and agree that the amounts and benefits received by the respective Parties pursuant to the Transactions are independent and adequate consideration for entering into this Agreement, and for waiving and releasing the Claims as set forth in Section 4 and Section 5.

	
7.
	
Non-Disparagement.  Effective as of the date hereof, until the third anniversary of the date of this Agreement, (a) Investor shall not, and shall cause its Affiliates not to, make any oral or written statement that disparages or places any of the RAIT Parties or any of their respective Affiliates in a false or negative light and (b) the RAIT Parties shall not, and shall cause their respective Affiliates not to, make any oral or written statement that disparages or places Investor or any of its Affiliates in a false or negative light.  Nothing in this Section 7 shall limit any Party’s ability to make true and accurate statements or communications in connection with any disclosure such person reasonably believes is required pursuant to applicable Law.

	
8.
	
Miscellaneous. 

a.The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

b.This Termination Agreement supersedes any other oral or written agreements between the Parties regarding the subject matter hereof.

c.This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each Party.  No waiver by any Party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by the Party so waiving.  No 

3

 

 

waiver by any Party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver.  No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. This Termination Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns.

d.This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York without giving effect to any choice or conflict of law provision or rule (whether of the State of New York or any other jurisdiction).

e.ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT OR THE MATTERS CONTEMPLATED HEREBY MAY BE INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF NEW YORK, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING.  THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

f.EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.  EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT: (i) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION; (ii) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER; (iii) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY; AND (iv) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8(f).

g.This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement.  A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF, the Parties have executed and delivered this Termination Agreement as of the date first set forth above

RAIT FINANCIAL TRUST

	
 
	
By:
	
/s/ Jamie Reyle________________
Name: Jamie Reyle, Esq.
Title: Interim CEO, Interim President & General  Counsel 

RAIT PARTNERSHIP, L.P.

	
 
	
By:
	
RAIT General, Inc., a Maryland corporation, its General Partner

	
 
	
By:
	
/s/ Jamie Reyle________________
Name: Jamie Reyle, Esq.
Title: Interim CEO, Interim President & General  Counsel 

TABERNA REALTY FINANCE TRUST

	
 
	
By:
	
/s/ Jamie Reyle________________
Name: Jamie Reyle, Esq.
Title: Interim CEO, Interim President & General  Counsel 

 

 

 

 

 

 

 

[Signature Page to Termination Agreement]

 

 

RAIT ASSET HOLDINGS IV, LLC,

 

	
 
	
By:
	
RAIT Partnership, L.P., a Delaware limited partnership, 

its managing member

 

	
 
	
By:
	
RAIT General, Inc., a Maryland corporation, its General Partner

	
 
	
By:
	
/s/ Jamie Reyle________________
Name: Jamie Reyle, Esq.
Title: Interim CEO, Interim President & General  Counsel 

[Signature Page to Termination Agreement]

 

 

INVESTOR:

ARS VI INVESTOR I, LP

By:  ARS VI Investor I GP,

        LLC, its General Partner

By:  Almanac Realty Securities VI,

        L.P., its Sole Member

By:  Almanac Realty Partners VI,

        LLC, its General Partner

 

By: _/s/ Matthew W. Kaplan_______________

	
 
	

	
 Name: Matthew W. Kaplan
 Title:   President

 

 

 

 

 

 

 

[Signature Page to Termination Agreement]EX-4.2

 Exhibit 4.2 

THIS WARRANT AND THE SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER. THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD,
PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH APPLICABLE LAW. 
 SECOND WARRANT TO PURCHASE STOCK 

 

			
	 Corporation:
	 	BioNanomatrix, Inc.
	 Number of Shares:
	 	42,872
	 Class of Stock:
	 	Series B Preferred Stock
	 Initial Exercise Price:
	 	$1.3995 per share
	 Issue Date:
	 	September 14, 2011
	 Expiration Date:
	 	September 14, 2018

 THIS WARRANT CERTIFIES
THAT, for good and valuable consideration, the receipt of which is hereby acknowledged, SQUARE 1 BANK or its assignee (“Holder”) is entitled to purchase
at any time and from time to time prior to the Expiration Date, the number of fully paid and nonassessable shares of the class of securities (the “Shares”) of the corporation (the “Company”) at the
initial exercise price per Share (the “Warrant Price”) all as set forth above and as adjusted pursuant to Article 2 of this warrant, subject to the provisions and upon the terms and conditions set forth in this warrant. 

ARTICLE 1 
 EXERCISE

 1.1 Method of Exercise. Holder may exercise this warrant prior to the Expiration Date by delivering
this warrant and a duly executed Notice of Exercise in substantially the form attached as Appendix 1 to the principal office of the Company. Unless Holder is exercising the conversion right set forth in Section 1.2, Holder shall also deliver to
the Company a check for aggregate Warrant Price for the Shares being purchased. 
 1.2 Conversion Right. In
lieu of exercising this warrant as specified in Section 1.1, Holder may from time to time convert this warrant, in whole or in part, into a number of Shares determined by dividing (a) the aggregate fair market value of the Shares or other
securities otherwise issuable upon exercise of this warrant minus the aggregate Warrant Price of such Shares by (b) the fair market value of one Share. The fair market value of the Shares shall be determined pursuant to Section 1.3.
If the fair market value of one Share as determined pursuant to Section 1.3 is less than the exercise price per Share hereunder at the time of any automatic conversion pursuant to Section 1.6.2, then the warrant shall not be automatically
converted into Shares under Section 1.6.2 but instead upon the occurrence of such Acquisition shall expire unexercised and be of no further force and effect. 

1.3 Fair Market Value. If the Shares are traded regularly in a public market, the fair market value of the
Shares shall be the closing price of the Shares (or the closing price of the Company’s stock into which the Shares are convertible) reported for the business day immediately before Holder delivers its Notice of Exercise to the Company. If the
Shares are not 

  
 1. 

 
regularly traded in a public market, the Board of Directors of the Company shall determine fair market value in its reasonable good faith judgment. 

1.4 Delivery of Certificate and New Warrant. Promptly after Holder exercises or converts this warrant, the
Company shall deliver to Holder certificates for the Shares acquired and, if this warrant has not been fully exercised or converted and has not expired, a new warrant representing the Shares not so acquired. 

1.5 Replacement of Warrants. On receipt of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company or, in the case of mutilation, on surrender and
cancellation of this warrant, the Company at its expense shall execute and deliver, in lieu of this warrant, a new warrant of like tenor. 

1.6 Conversion on Sale, Merger, or Consolidation of the Company. 

1.6.1 “Acquisition.” For the purpose of this warrant, “Acquisition”
means (a) any sale, license, or other disposition of all or substantially all of the assets (including intellectual property) of the Company, or (b) any reorganization, consolidation, merger or sale of the voting securities of the Company
or any other transaction where the holders of the Company’s securities before the transaction beneficially own less than 50% of the outstanding voting, securities of the surviving entity after the transaction. 

1.6.2 Conversion of Warrant upon Acquisition. If, upon the closing of any Acquisition, Holder has not otherwise
exercised this warrant in full, then this warrant shall be deemed to have been automatically converted pursuant to Section 1.2, and thereafter Holder shall participate in the Acquisition on the same terms as other holders of the same class of
securities of the Company. 
 ARTICLE 2 

ADJUSTMENTS TO THE SHARES 

2.1 Stock Dividends, Splits, Etc. If the Company declares or pays a dividend on its common stock payable in
common stock, or other securities, or subdivides the outstanding common stock into a greater amount of common stock, then upon exercise of this warrant, for each Share acquired, Holder shall receive, without cost to Holder, the total number and kind
of securities to which Holder would have been entitled had Holder owned the Shares of record as of the date the dividend or subdivision occurred. 

2.2 Reclassification, Exchange or Substitution. Upon any reclassification, exchange, substitution, or other
event that results in a change of the number and/or class of the securities issuable upon exercise or conversion of this warrant, Holder be entitled to receive, upon exercise or conversion of this warrant, the number and kind of securities and
property that Holder would have received for the Shares if this warrant had been exercised immediately before such reclassification, exchange, substitution, or other event. Such an event shall include any automatic conversion of the outstanding or
issuable securities of the Company 

  
 2. 

 
of the same class or series as the Shares to common stock pursuant to the terms of the Company’s Articles of Incorporation upon the closing of a registered public offering of the
Company’s common stock. The Company or its successor shall promptly issue to Holder a new warrant for such new securities or other property. The new warrant shall provide for adjustments which shall be as nearly equivalent as may be practicable
to the adjustments provided for in this Article 2 including, without limitation, adjustments to the Warrant Price and to the number of securities or property issuable upon exercise of the new warrant. The provisions of this Section 2.2 shall
similarly apply to successive reclassifications, exchanges, substitutions, or other events. 
 2.3 Adjustments for
Combinations, Etc. If the outstanding Shares are combined or consolidated, by reclassification or otherwise, into a lesser number of shares, the Warrant Price shall be proportionately increased. If the outstanding Shares are combined or
consolidated, by reclassification or otherwise, into a greater number of shares, the Warrant Price shall be proportionately decreased. 

2.4 Certificate as to Adjustments. Upon each adjustment of the Warrant Price, the Company at its expense shall
promptly compute such adjustment, and furnish Holder with a certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which such adjustment is based. The Company shall, upon written request, furnish Holder a
certificate setting forth the Warrant Price in effect upon the date thereof and the series of adjustments leading to such Warrant Price. 

2.5 Fractional Shares. No fractional Shares shall be issuable upon exercise or conversion of the Warrant and the
Number of Shares to be issued shall be rounded down to the nearest whole Share. If a fractional share interest arises upon any exercise or conversion of the Warrant, the Company shall eliminate such fractional share interest by paying Holder amount
computed by multiplying the fractional interest by the fair market value of a full Share. 

  
 3. 

 ARTICLE 3 

REPRESENTATIONS AND COVENANTS OF THE COMPANY AND THE HOLDER 

3.1 Representation and Warranties of the Company. The Company hereby represents and warrants to the Holder as
follows: 
 (a) All Shares which may be issued upon the exercise of the purchase right represented by this warrant,
and all securities, if any, issuable upon conversion of the Shares, shall, upon issuance, be duly authorized, validly issued, fully paid and nonassessable, and free of any liens and encumbrances except for restrictions on transfer provided for
herein or under applicable federal and state securities laws. 
 (b) The Company’s capitalization table attached
to this warrant is true and complete in all material respects as of the Issue Date. 
 3.2 Notice of Certain
Events. The Company shall provide Holder with not less than 10 days prior written notice, including a description of the material facts surrounding the impact on the Holder’s Warrant of, any of the following events: (a) declaration of
any dividend or distribution upon its common stock, whether in cash, property, stock, or other securities and whether or not a regular cash dividend; (b) offering for subscription pro rata to the holders of any class or series of its stock any
additional shares of stock of any class or series or other rights; (c) effecting any reclassification or recapitalization of common stock; or (d) the merger or consolidation with or into any other corporation, or sale, lease, license, or
conveyance of all or substantially all of its assets, or liquidation, dissolution or winding up. 
 3.3
Information Rights. So long as the Holder holds this warrant and/or any of the Shares, the Company shall deliver to the Holder (a) promptly after mailing, copies of all communiques to the shareholders of the Company, (b) within one
hundred eighty (180) days after the end of each fiscal year of the Company, the annual audited financial statements of the Company certified by independent public accountants of recognized standing and (c) within forty-five (45) days after the end of each of the first three quarters of each fiscal year, the Company’s quarterly, unaudited financial statements. 

3.4 Registration Under Securities Act of 1933, as amended and Other Rights and Obligations. The Company and the
Holder agree that the Shares or, if the Shares are convertible into common stock of the Company, such common stock, shall be “Registrable Securities”, and Holder shall be a “holder of Registrable Securities” under the
Investors’ Rights Agreement among the Company and other persons dated as of August 16, 2007 (as it may be amended and/or restated, the “IRA”) solely for the purposes of receiving the registration rights
(and being subject to the related obligations) set forth in Sections 4 through 11 thereof. In addition, prior to the issuance of the shares of Common Stock issuable upon exercise of this Warrant, the Holder agrees to be bound to the Stockholders
Agreement dated among the Company arid other persons dated as of August 16, 2007 (as it may be amended and/or restated, the “Stockholders Agreement”) as a “Holder” pursuant thereto. The Company
has provided to the Holder the current copies of the IRA and the Stockholders Agreement as of the Issue Date. Upon request of the Company, the Holder will execute joinders to the IRA and the Stockholders

  
 4. 

 
Agreement or a separate agreement evidencing the provisions that the Holder agrees to be bound by pursuant to this Section 3.4. In the event of a conflict between the provisions of either
the IRA or the Stockholders Agreement, and this warrant, the provisions of this warrant shall govern. 
 3.5
Representations and Warranties of the Holder. The Holder represents and warrants to the Company as follows: 

(a) It is acquiring the Warrant, and (if and when it exercises this Warrant) it will acquire the Shares, for its own
account for investment and not with a view to, or for sale in connection with, any distribution thereof, nor with any present intention of distributing or selling the same; and the Holder has no present or contemplated agreement, undertaking,
arrangement, obligation, indebtedness or commitment providing for the disposition thereof. 
 (b) The Holder is an
“accredited investor” as defined in Rule 501(a) under the Securities Act of 1933, as amended (the “Act”). 

(c) The Holder has made such inquiry concerning the Company and its business and personnel as it has deemed
appropriate; and the Holder has sufficient knowledge and experience in finance and business that it is capable of evaluating the risks and merits of its investment in the Company. 

ARTICLE 4 
 MISCELLANEOUS

 4.1 Term: Exercise Upon Expiration. This warrant is exercisable in whole or in part, at any time and
from time to time during the Exercise Period. If this warrant has not been exercised prior to the end of the Exercise Date, this warrant shall be deemed to have been automatically exercised on the Exercise Date by “cashless” conversion
pursuant to Section 1.2. 
 4.2 Legends. This warrant and the Shares (and the securities issuable,
directly or indirectly, upon conversion of the Shares, if any) shall be imprinted with a legend in substantially the following form together with any other legend required under the IRA, the Stockholders Agreement or to implement the other
provisions of Section 3.4 hereof: 
 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY
NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH APPLICABLE LAW AND IN ACCORDANCE WITH SECTION 4.3 OF THE WARRANT PURSUANT TO WHICH THIS SECURITY WAS ISSUED. 

4.3 Compliance with Securities Laws on Transfer. This warrant and the Shares issuable upon exercise of this
warrant (and the securities issuable, directly or indirectly, upon conversion of the Shares, if any) may not be transferred or assigned in whole or in part without compliance with applicable federal and state securities laws by the transferor and
the transferee. The Company may require Holder to provide an opinion of counsel, except if the transfer is to 

  
 5. 

 
an affiliate of Holder or if there is no material question as to the availability of current information as referenced in Rule 144(c), Holder represents that it has complied with Rule 144 (d) and
(e) in reasonable detail, the selling broker represents that it has complied with Rule 144(f), and the Company is provided with a copy of Holder’s notice of proposed sale. 

4.4 Transfer Procedure. Subject to the provisions of Section 4.3, Holder may transfer all or part of this
warrant or the Shares issuable upon exercise of this warrant (or the securities .issuable, directly or indirectly, upon conversion of the Shares, if any) by giving the Company notice of the portion of the warrant being transferred setting forth the
name, address and taxpayer identification number of the transferee and surrendering this warrant to the Company for reissuance to the transferee(s) (and Holder, if applicable). No surrender or reissuance shall be required if the transfer is to
an affiliate of Holder. 
 4.5 Notices. All notices and other communications from the Company to the Holder,
or vice versa, shall be deemed delivered and effective when given personally or mailed by first-class registered or certified mail, postage prepaid, at such address as may have been furnished to the Company or the Holder, as the case may be, in
writing by the Company or such Holder from time to time. All notices to the Holder shall be addressed as follows: 

Square 1 Bank 

Attn: Warrant Administrator 

406 Blackwell Street, Suite 240 

Crowe Building . 

Durham, NC 27701 

4.6 Amendments. This warrant and any term hereof may be changed, waived, discharged or terminated only by an
instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 

4.7 Attorneys’ Fees. In the event of any dispute between the parties concerning the terms and provisions of
this warrant, the party prevailing in such dispute shall be entitled to collect from the other party all costs incurred in such dispute, including reasonable attorneys’ fees. 

4.8 Governing Law. This warrant shall be governed by and construed in accordance with the laws of the State of
North Carolina, without giving effect to its principles regarding conflicts of law. 
  

			
	BIONANOMATRIX, INC.

 
			
		
	 By:
	 	 

 
			
		
	 Name:
	 	 
		
	 Title:
	 	 

  
 6. 

 APPENDIX 1 

NOTICE OF EXERCISE 

1. The undersigned hereby elects to purchase
                         shares of the
                         stock of BIONANOMATRIX, INC. pursuant to the
terms of the attached warrant, and tenders herewith payment of the purchase price of such shares in full. 
 1. The
undersigned hereby elects to convert the attached warrant into shares in the manner specified in the warrant. This conversion is exercised with respect to
                         of the shares covered by the warrant. 

[Strike paragraph that does not apply.] 

2. Please issue a certificate or certificates representing said shares in the name of the undersigned or in such other
name as is specified below: 
 Square 1 Bank 

Attn: Warrant Administrator 

406 Blackwell Street, Suite 240 

Fowler Building 

Durham, NC 27701 

3. The undersigned represents it is acquiring the shares solely for its own account and not as a nominee for any other
party and not with a view toward the resale or distribution thereof except in compliance with applicable securities laws. 
  

	
	SQUARE 1 BANK or Registered Assignee
	
	   

	 (Signature)

	
	 
	 (Date)

  
 7.

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