Document:

Contribution Agreement 8-4-2017

Exhibit 10.10

CONTRIBUTION AND LICENSE AGREEMENT

This CONTRIBUTION AND LICENSE AGREEMENT (this “Agreement”) is entered into as of August 11, 2017 (the “Effective Date”), by and between Funding Wonder, Inc., a Delaware corporation (“FW”) and Finfora Inc., a Delaware corporation (“Finfora” and, together with FW, the “Parties”).

Background

A.

FW owns and operates a fully FINRA licensed online debt crowd funding platform at www.fundingwonder.com (the “Platform”);

B.

FW internally developed and owns all of the proprietary software architecture and code used to run and maintain the Platform in the ordinary course of business (the “Software”);

C.

Finfora was organized under Delaware law to serve as an joint venture investment vehicle pursuant to which FW and certain investors plans to further exploit the Software through the development of a white label “software as a service” program pursuant to which the Software will be licensed to or used by third parties who desire own and operate their own crowd funding platforms;

D.

FW currently owns 750,000 shares of capital stock of Finfora which represents 50% of the issued and outstanding capital stock of Finfora;

E.

The Parties desire to enter into this Agreement to memorialize the terms and conditions of their mutual understanding and agreement regarding the contribution of the Software to Finfora in exchange for additional shares of capital stock of Finfora.

Terms and Conditions

For the reasons described above, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

1.

Contribution of Software. Concurrently with the execution of this Agreement, FW hereby contributes, transfers, assigns, conveys and delivers to Finfora, 100% of the FW’s right, title and interest in and to the Software, which for purposes of clarification includes, without limitation, all human readable code which documents the Software, including all related compilers, entities, listings, test suites, build scripts, libraries, design documentation and technical documentation related thereto, and any modifications of, revisions, improvements to, or derivative work of any source code components, made, conceived or reduced to practice by FW in connection with the Software, including without limitation all bug fixes, made on or prior to the date hereof.

2.

Grant of Capital Stock. In exchange for FW’s contribution of the Software, Finfora hereby contemporaneously issues to FW 14,250,000 shares of Finfora’s common capital stock (the “New Shares”), which, upon consummation of the transactions contemplated in this Agreement, shall represent approximately 90.48 % of the issued and outstanding shares of capital stock of Finfora on a fully diluted basis. After consummation of the contribution,

FW shall own 95.24% of Finfora’s common capital stock on a fully diluted basis.

3.

Retention of License by FW. Contemporaneously with the contribution of the Software, Finfora hereby grants to FW and its affiliates, and FW hereby retains, a limited, perpetual, irrevocable, fully paid-up, worldwide, royalty-free, non-exclusive license (the “FW License”) to use the Software to operate its existing debt crowd funding platform in the ordinary course of its business, as it is currently conducted. The FW License does not include any right to assign, sublicense, sell, copy, market, promote, exploit, reproduce, publicly distribute, create or reproduce the Software or any derivative works thereof, or otherwise use the Software in any capacity except in connection with FW’s and its  affiliates’ debt crowd funding platform as currently conducted, with the exception of the rights to make modifications for internal use and bug fixes in the ordinary course of business. The FW License is only assignable by FW in connection with a sale of FW’s entire business, whether by sale of assets, merger, change in voting control, or similar sale event, but Finfora shall have the right to require any successor to FW to expressly consent to and ratify the limitations to the FW License as set forth herein prior to the consummation of any such sale of FW’s business, failing which such assignment shall be deemed null and void for all purposes, and result in an immediate forfeiture of the FW License.

4.

Delivery.

FW agrees that it will deliver to Finfora a complete and accurate copy of the Software on the Effective Date in “source code” format.

5.

Maintenance. As the original developer of the Software, for a period of no less than twelve

(12) months from the date hereof FW shall perform all required Maintenance to the Software free of charge to Finfora. “Maintenance” means any and all updates, bug fixes, error corrections, and changes to the Software as is required to keep the Software functional within the parameters of FW’s existing use in accordance with and subject to the FW License. Any and all enhancements, changes, new versions, new releases, new features, upgrades, functionality changes and improvements to the Software shall be the sole responsibility of Finfora, including enhancements necessary to convert the Software into a “white label” SAAS offering as contemplated by Finfora. FW DOES NOT GUARANTEE THAT THE MAINTENANCE WILL BE PERFORMED ERROR, FREE OR UNINTERRUPTED, OR THAT FW WILL CORRECT ALL ERRORS. FINFORA ACKNOWLEDGES THAT FW DOES NOT CONTROL THE TRANSFER OF DATA OVER COMMUNICATIONS FACILITIES, INCLUDING THE INTERNET, AND THAT MAINTENANCE MAY BE SUBJECT TO LIMITATIONS, DELAYS, AND OTHER PROBLEMS INHERENT IN THE USE OF SUCH COMMUNICATIONS FACILITIES. FW IS NOT RESPONSIBLE FOR ANY DELAYS, DELIVERY FAILURES, OR OTHER DAMAGE RESULTING FROM SUCH PROBLEMS.

6.

Representations and Warranties of Finfora.

6.1

Existence and Good Standing. Finfora is a corporation duly organized, validly existing and in good standing under the laws of Delaware.

6.2

Power. Finfora has the corporate power and authority to execute, deliver and perform fully its obligations under this Agreement.

6.3

Validity and Enforceability. This Agreement has been duly executed and delivered

by Finfora and, assuming due authorization, execution and delivery by each of the Contributors, represents the legal, valid and binding obligation of Finfora, enforceable against Finfora in accordance with its respective terms, except as such enforceability may be subject to or limited by bankruptcy, insolvency, reorganization, moratorium, receivership and similar laws affecting creditors’ rights generally and general principles of equity. No further action on the part of Finfora is or will be required in connection with the transactions contemplated hereby.

6.4

No Conflict. Neither the execution of this Agreement nor the performance by Finfora of its obligations hereunder will violate or conflict with Finfora’s Certificate of Incorporation, By-Laws, Stockholders Agreement or any applicable law.

6.5

Consents. No consent, approval or authorization of any person, entity or governmental authority is required in connection with the execution and delivery by Finfora of this Agreement or the consummation of the transactions contemplated by this Agreement.

7.

Representations and Warranties of FW.

7.1

Exclusive Ownership. The Software has been solely and exclusively created by FW and its contractors and employees, or FW has procured all necessary rights and licenses from the owners of such rights to enter into and carry out the terms of this Agreement, and in either case the exercise of Finfora's rights under this Agreement will not require the acquisition of rights from any third party;

7.2

Infringement. Neither the Software nor the exercise by Finfora of any of the rights granted hereunder will infringe any patents, copyrights, trademarks, trade secrets, or applications to register any of the foregoing or any other proprietary rights in any inventions (whether or not patentable), works of authorship, trade secrets, techniques, know-how, ideas, concepts, algorithms and other similar rights that may be recognized by law (“Intellectual Property Rights”) or other right of any third party or be subject to any restrictions or to any mortgages, liens, pledges, security interest, encumbrances or encroachments;

7.3

Bugs. To FW’s best knowledge, the Software is free of any: (i) viruses, worms, time bombs, Trojan horses or other harmful, malicious or destructive code and (ii) software disabling devices, time-out devices, counter devices and devices intended to collect data regarding usage of the Software;

7.4

Open Source. The Software does not incorporate, link or call to or otherwise use  any open source, community or other free code or libraries of any type, including, without limitation, any code which is made generally available on the Internet without charge or which meets the definition of “open source” or “free,” as defined by the Open Source Initiative or Free Software Foundation, respectively, or is licensed under any license agreement approved by either such entity (such as, for example purposes only, the GNU GPL, Mozilla or Apache license);

7.5

Third Parties. the Software does not contain any software or code owned by third parties or require any third party software in order to function in its intended fashion; any Software Source Code delivered to Finfora pursuant to this Agreement (i) will

be provided with materials sufficient to enable a reasonably skilled programmer to readily interpret, build, modify, load, use, support and maintain the code and to perform or caused to be performed such actions as are licensed hereunder, and (ii) can readily be compiled by a computer or assembler for execution; and

7.6

Claims. FW is not aware of, nor has received notice of, any pending or threatened claims, suits, actions, or charges pertaining to the Software, including without limitation any claims or allegations that any or all of the Software infringes, violates, or misappropriates the Intellectual Property Rights or other rights of any third party. FW agrees that it will notify Finfora immediately if FW becomes aware of any actual or potential claims, suits, actions, allegations or charges that could affect either party's ability to fully perform its duties or to exercise its rights under the Agreement.

7.7

Validity and Enforceability. FW has the requisite power and authority to execute, deliver and perform its obligations under this Agreement. This Agreement has been duly executed and delivered by FW and, assuming due authorization, execution and delivery by Finfora, represents the legal, valid and binding obligation of FW enforceable against FW in accordance with its terms, except as such enforceability may be subject to or limited by bankruptcy, insolvency, reorganization, moratorium, receivership and similar laws affecting creditors’ rights generally and general principles of equity. No further action on the part of Finfora is or will be required in connection with the transactions contemplated hereby. No further action on the part of FW is or will be required in connection with the transactions contemplated hereby.

7.8

No Conflict. Neither the execution and delivery of this Agreement by FW, nor the performance by FW of its obligations under this Agreement, will violate or conflict with any applicable law.

7.9

Consents. No consent, approval or authorization of, or notice to, any person, entity or governmental authority is required in connection with the execution and delivery by such Contributor of this Agreement or the consummation of the transactions contemplated by this Agreement.

7.10

No Other Warranties. Except for the express representations and warranties set forth above 4.3, no express or implied representations or warranties of any kind are provided to either Party under this Agreement. FW EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY, AND FITNESS FOR A PARTICULAR PURPOSE. FINFORA EXPRESSLY DISCLAIMS ANY RELIANCE ON OMISSIONS OF INFORMATION, EXTRA CONTRACTUAL OMISSIONS, AND ANY REPRESENTATIONS OUTSIDE OF THIS AGREEMENT OF ANY NATURE OR KIND WHATSOEVER IN ENTERING INTO THIS AGREEMENT.

8.

Confidentiality Provisions

8.1

Confidential Information. Each Party acknowledges that it may receive Confidential Information (as defined below) of the other Party during the term of this Agreement. Each Party, upon receiving any Confidential Information (in such capacity, the

“Receiving Party”), shall use reasonable measures to protect the confidentiality of the Confidential Information of the other Party (in such capacity, the “Disclosing Party”). "Confidential Information" as used in this Agreement shall include, without limitation, (a) the Software in Source Code format and any related Source Code documentation and (b) any information identified by a Party as confidential or which by its nature the Receiving Party would reasonably recognize to be confidential or proprietary in nature. Confidential Information includes without limitation all documents, inventions, drawings, diagrams and any other tangible manifestation (including data in electronic or other digital format) of the foregoing which now exist or come into control or possession of the other Party. Notwithstanding the foregoing, the term “Confidential Information” shall not include any information which: (i) is publicly disclosed by the Disclosing Party, either before or after it becomes known to the Receiving Party; (ii) was known to the Receiving Party or  any of its affiliates, without obligation to keep it confidential, prior to when it was received from the Disclosing Party; (iii) is subsequently disclosed to the Receiving Party or any of its affiliates by a third party lawfully in possession thereof without obligation to keep it confidential; (iv) has been published by a third party or otherwise becomes publicly available through no fault of the Receiving Party or any of its affiliates in breach of this Agreement; or (v) has been independently developed by the Receiving Party or any of its affiliates without the aid, application or use of Confidential Information, as demonstrated by the Receiving Party.

8.2

Non-Disclosure Obligations. Receiving Party agrees: to use commercially reasonable efforts to protect the Confidential Information of the Disclosing Party from unauthorized use or disclosure and to use at least the same degree of care with regard thereto as it uses to protect its own Confidential Information of a like nature; to use and reproduce the Disclosing Party's Confidential Information only as permitted under this Agreement or as needed to perform its duties hereunder; and not to disclose or permit access to the Disclosing Party's Confidential Information to any third party, without the Disclosing Party's prior written consent.

8.3

Exclusions. Notwithstanding Section 8.2 hereof, each Party shall be entitled to disclose Confidential Information of the other Party, solely to the extent required, as follows: (a) as required by any court or other governmental body; (b) as otherwise required by applicable law or rules of a securities exchange; or (c) to the Receiving Party's affiliates, employees, consultants, contractors and advisors who "need to know" such Confidential Information in connection with performing Receiving Party's obligations or exercising Receiving Party's rights under this Agreement, provided that such affiliates, employees, consultants, contractors or advisors are bound by agreements to protect the Confidential Information as required by this Section 8 and Receiving Party shall remain responsible for any unauthorized disclosure, possession or use or failure of the foregoing parties to treat such Confidential Information as required by this Section 8; provided further that prior to any disclosure pursuant to clause (a) or (b) of this Section 8.3, the Receiving Party shall notify the Disclosing Party of the Receiving Party's intent to make such disclosure so as to allow the Disclosing Party adequate time to take whatever action the Disclosing Party may deem to be appropriate to protect the confidentiality of the information and, at the Disclosing Party's request and expense, disclose no more

Confidential Information than is so required and fully cooperate with the Disclosing Party's attempts to seek to obtain assurances that the Confidential Information disclosed shall be accorded confidential treatment. Finfora may also disclose Confidential Information to licensees of the Software on a “need to know” basis provided that Finfora includes in its agreements with licensees contractual  provisions whereby licensees agree to comply with provisions of confidentiality as restrictive as this Section 8.

8.4

Terms of Agreement. Neither Party will disclose the terms of this Agreement to any third party without the prior written consent of the other Party, except that either Party may disclose the terms of this Agreement to its employees, consultants, existing and potential investors, acquirers and lenders, the professional and legal advisers of any of the foregoing and its professional and legal advisers (collectively, “Representatives”), which Representatives have a “need-to-know” for the purposes of evaluating, negotiating or documenting a contemplated investment, loan or acquisition; provided, however, that each such Representative is bound by a written agreement (or in the case of attorneys or other professional advisors, ethical duties) requiring such Representative to protect the terms of this Agreement with the same degree of care as provided herein for Confidential Information.

9.

Limitation of Liability. THE PARTIES HERETO AGREE THAT, NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT, EXCEPT FOR (A) EITHER PARTY'S BREACH OF SECTION 8 (CONFIDENTIALITY), NEITHER PARTY NOR ANY OF ITS AFFILIATES SHALL BE LIABLE TO THE OTHER OR ANY OTHER PERSON FOR (1) DAMAGES IN THE FORM OF CONSEQUENTIAL (INCLUDING LOST PROFITS), INCIDENTAL, PUNITIVE, INDIRECT OR SPECIAL DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. FW’S MAXIMUM LIABILITY, WHETHER FOR BREACH OF CONTRACT, OR TORT, OR OTHERWISE, SHALL IN NO EVENT EXCEED, IN THE AGGREGATE, $10,000.

10.

Indemnification. FW shall indemnify, defend and hold harmless Finfora, its affiliates and their officers, directors, members, managers, employees and agents against any and all losses, liabilities, expenses (including, without limitation, reasonable attorneys' and expert's fees and court costs) and costs arising from any third party claim, action, or proceeding (“Claim”) brought against Finfora or any of its affiliates or licensees that arises out of or relates to any claim that the exercise of rights in or to the Software granted in this Agreement infringes on or otherwise violates any Intellectual Property Rights or other right of a third party. Finfora will: (a) promptly notify FW of such Claim; (b) tender to FW the sole and exclusive authority to defend and/or settle any such Claim; provided that FW will not settle or otherwise finally dispose of any Claim without Finfora's prior written consent, which will not be unreasonably withheld or delayed; and/or (c) reasonably cooperate with FW in connection with such Claim. FW shall have no liability or obligation under this Section 10 with respect to any Claim if such Claim is caused in whole or in part by (x) modification of the Software by any party other than FW, to the extent that such Claim would not have arisen but for such modification; or (y) the combination, operation, or use of the Software with other applications, portions of applications, product(s), data or services where the Software, as applicable, would not by itself be infringing.

11.

General Provisions.

11.1

Governing Law; Venue. The laws of the State of Florida, excluding any choice of law provisions if such laws would result in the application of laws other than the laws of the State of Florida, shall govern any disputes among the Parties, the validity of this Agreement, the construction of its terms, and the interpretation of the rights and duties of the Parties hereunder. The forum selected for any proceeding or suit related to a dispute among the Parties or this Agreement shall be in a federal or state court of competent jurisdiction located in Miami-Dade County, Florida. The Parties each consent to those courts’ personal jurisdiction over them, and waive any defense,  whether asserted by motion or pleading, that Miami-Dade County, Florida is an improper or inconvenient venue.

11.2

Survival. The provisions of this Agreement shall survive the transfer of the Assets and shall remain effective indefinitely.

11.3

Further Action. Each Party hereto agrees to perform all further acts and execute, acknowledge, and deliver any documents which may be reasonably necessary, appropriate, or desirable to carry out the provisions of this Agreement.

11.4

No Waiver. No Party shall be deemed to have waived any of his/its rights or remedies hereunder unless such waiver is specific and in writing. No delay or omission by any Party in exercising any of his/its rights or remedies hereunder shall constitute a waiver thereof, or shall constitute any further waiver thereafter. All rights and remedies of a Party are cumulative and concurrent and the exercise of one right or remedy shall not be deemed a waiver or release of any other right or remedy.

11.5

Binding Effect; Counterparts. The covenants and agreements contained in this Agreement shall be binding on, and shall inure to the benefit of the successors and assigns of the Parties. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement.

11.6

Complete Agreement; Modification. This Agreement contains the final, complete, and exclusive expression of the understanding among the Parties with respect to the transactions contemplated by this Agreement, and supersedes any prior or contemporaneous agreement or representation, oral or written, by any of them. This Agreement may be modified or amended only by an agreement in writing signed by or on behalf of all ofthe Parties.

11.7

Certain References. References herein to “Section” shall be deemed to refer to sections of this Agreement; references herein to “Exhibit” or “Schedule” shall be deemed to refer to documents attached as Exhibits or Schedules to thisAgreement.

11.8

Severability. If any paragraph, or other provision of this Agreement, or  the application thereof, is held to be invalid, illegal, or unenforceable in any respect or for any reason, the remainder of this Agreement, and the application of the paragraph, or other provision to a person or circumstance with respect to which it is valid, legal, and enforceable, shall not be affected thereby.

11.9

Corporate Authority. Each individual executing this Agreement on behalf of a corporation represents and warrants that he or she is duly authorized to execute and deliver this Agreement on behalf of the corporation, in accordance with a duly adopted resolution of the board of directors of the corporation, or in accordance with the bylaws of the corporation, and that this Agreement is binding upon the corporation.

11.10

Expenses. FW and Finfora shall each pay their respective expenses (including, without limitation, legal, investment banker and accounting fees) incurred in connection with the negotiation and execution of this Agreement and the consummation of the transactions contemplated hereby.

11.11

Specific Performance. The Parties agree that immediate and irreparable damage, for which money damages would not be an adequate remedy, would occur in the event any provision of this Agreement is not performed in accordance with the terms hereof and that the Parties shall be entitled to an injunction or injunctions (without posting a bond or other undertaking) to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in addition to any other remedy to which they are entitled at law or in equity. In the event that any action shall be brought in equity to enforce the provisions of this Agreement, no party shall allege, and each party hereby waives the defense, that there is an adequate remedy at law.

11.12

Third Parties. This Agreement does not create any rights, claims or benefits inuring to any Person that is not a Party nor create or establish any third party beneficiary hereto.

11.13

No Agency. The Parties hereto acknowledge that this Agreement is not intended to make either of them an agent or legal representative of the other for any purpose whatsoever. No Party is granted, by this Agreement or otherwise, any right or authority to assume or create any obligation or responsibilities, express or implied, on behalf of or in the name of any other Party, or to bind any other Party in any manner whatsoever. The Parties expressly acknowledge that the Parties intend that the Parties are not partners, joint venturers, employees or agents (dependent or independent) of or with each other, nor are any of the foregoing contemplated by the Parties.

11.14

Export Compliance. Each Party agrees to comply fully with all applicable export control laws, regulations, rules and orders, and shall not authorize any third party to export, re-export, release or transfer directly or indirectly any commodities, software or technology for any proscribed end-use, or to any proscribed country, entity or person (wherever located), without first obtaining at its own expense any applicable written authorizations.

11.15

Further Assurances. Each Party shall perform all other acts and execute and deliver all other documents as may be necessary or appropriate to carry out the purposes and intent of this Agreement.

11.16

Counterparts.  This Agreement may be executed in two or more counterparts, each  of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument. Copies of executed counterparts transmitted by telecopy, telefax or other electronic transmission service shall be considered original executed counterparts for purposes of this Section 11.16.

IN WITNESS WHEREOF, the Parties have executed this Contribution and License Agreement to be effective for all purposes as of the Effective Date.

Funding Wonder, Inc., a Delaware corporation

By:  /s/ Giovanni Soleti

 Name: Giovanni Soleti   Title: Chief Financial Officer  

Finfora, Inc., a Delaware corporation

By:  /s/ Michael Mildenberger

 Name: Michael Mildenberger   Title: Presidentgnpx-ex41_8.htm

 

Exhibit 4.1

THE PURCHASE RIGHTS EVIDENCED BY THIS WARRANT AGREEMENT AND THE SHARES OF CAPITAL STOCK ISSUABLE UPON EXERCISE OF SUCH PURCHASE RIGHTS HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED OR ANY STATE SECURITIES LAWS.  SUCH SECURITIES CANNOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF WITHOUT REGISTRATION OF SUCH SECURITIES UNDER ALL APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR COMPLIANCE WITH AN APPLICABLE EXEMPTION THEREFROM.  

GENPREX, INC.  

WARRANT AGREEMENT

July 27, 2018

 

THIS CERTIFIES THAT, for value received, Cancer Revolution LLC or its successors and permitted assigns pursuant to the terms hereof (the “Warrantholder”), is entitled to purchase from Genprex, Inc., a Delaware corporation (the “Company”), subject to the terms set forth below, four hundred twenty-five thousand (425,000) fully paid and non-assessable shares (subject to adjustment as provided herein) (the “Warrant Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”), at a purchase price of $5.00 in cash per Warrant Share (the “Exercise Price”), subject to the provisions and upon the terms and conditions hereinafter set forth.  The term “Warrant Agreement” as used herein shall refer to this Warrant Agreement, as the same may be amended or amended and restated.  

1.Exercise Period.  Subject to the terms and conditions of this Warrant Agreement, the purchase rights evidenced by this Warrant Agreement may be exercised, in whole or in part, at any time and from time to time following September 24, 2018 and before the earlier to occur of (a) the consummation of an Extraordinary Transaction (as defined herein) and (b) 5:00 p.m.  (Central Time) on the five-year anniversary of the date of this Warrant Agreement (each of (a) and (b), the “Expiration Date”).

2.Exercise.  

(a)Cash Exercise.  The purchase rights evidenced by this Warrant Agreement may be exercised by the Warrantholder, in whole or in part, by the surrender of this Warrant Agreement (with a duly completed and executed notice of exercise in the form attached hereto as Exhibit A (the “Notice of Exercise”)) at the principal office of the Company, accompanied by the payment to the Company, in cash, by wire transfer or by certified check payable to the Company, of an amount equal to the product of (i) the Exercise Price times (ii) the number of Warrant Shares as to which the purchase rights evidenced by this Warrant Agreement are being exercised (which number of Warrant Shares shall be stated in the duly executed Notice of 

{01368/0002/00223311.1}1

 

 

Exercise).  Upon receipt by the Company at such office of this Warrant Agreement and a duly executed Notice of Exercise in proper form for exercise, together with the aggregate Exercise Price due to the Company, the Warrantholder shall be deemed to have become, and shall be treated for all purposes as, the record holder of the number of the Warrant Shares as to which the purchase rights set forth in this Warrant Agreement have been so exercised (and such Warrant Shares shall be deemed, to the fullest extent permitted by law, to have been issued) immediately prior to the close of business on the date upon which the purchase rights evidenced by this Warrant Agreement are exercised as aforesaid.

(b)Cashless Exercise. In lieu of exercising the purchase rights evidenced by this Warrant Agreement by payment in cash by wire transfer or certified check pursuant to Section 2(a) above, the Warrantholder may elect to receive the number of Warrant Shares equal to the value of the purchase rights evidenced by this Warrant Agreement (or the portion thereof being exercised), by surrender of this Warrant Agreement to the Company, together with a duly completed and executed Notice of Exercise, in which event the Company shall issue to the Warrantholder Warrant Shares in accordance with the following formula:

 

X = Y(A-B)/A

where

X = The number of Warrant Shares to be issued to the Warrantholder;

Y = The number of Warrant Shares for which the purchase rights evidenced by this Warrant Agreement are being exercised;

A = The Fair Market Value of one share of the Company’s common stock (a “Share”); and

B = The Exercise Price.

For purposes of this Section 2(b), the “Fair Market Value” of a Share is defined as follows:

	
 
	
(i)
	
if the Company’s Common Stock is traded on a securities exchange, the value shall be deemed to be the average of the closing prices of the Shares on such exchange for the five (5) trading day period prior to the date the Notice of Exercise is submitted in connection with the exercise of the purchase rights evidenced by this Warrant Agreement;

 

	
 
	
(ii)
	
if the Company’s Common Stock is actively traded over-the-counter, the value shall be deemed to be the average of the closing bid prices of the Shares for the five (5) trading day period prior to the date the Notice of Exercise is submitted in connection with the exercise of the purchase rights evidenced by this Warrant Agreement; or

 

	
 
	
(iii)
	
if there is no active public market, the value shall be the fair market value thereof, as determined in good faith by the Company’s Board of Directors.

(c)Certificates; Partial Exercise. In the event of any exercise of the purchase 

{01368/0002/00223311.1}2

 

 

rights evidenced by this Warrant Agreement pursuant to this Section 2, the Company will use commercially reasonable efforts to execute and deliver a certificate or certificates evidencing the Warrant Shares so purchased to the Warrantholder within five (5) Business Days (as defined below) after the Company’s receipt of the Notice of Exercise and payment as described in this Section 2.  If the purchase rights evidenced by this Warrant Agreement are exercised in part only, unless the purchase rights evidenced by this Warrant Agreement have been fully exercised or expired, the Company shall use commercially reasonable efforts to deliver within such five (5) Business Day period to the Warrantholder a new Warrant Agreement evidencing the rights of the Warrantholder to purchase the balance of the Warrant Shares purchasable hereunder.  For purposes of this Warrant, “Business Day” means any day, except a Saturday, Sunday or legal holiday, on which banking institutions in New York, New York, are required to be open.  

(d)Fractions of a Warrant Share.  The Company shall not be required to issue any fraction of a Warrant Share in connection with the exercise of the purchase rights evidenced by this Warrant Agreement pursuant to this Section 2.  At its option, the Company may pay to the Warrantholder, in lieu of any fraction of a Warrant Share resulting from the exercise of the purchase rights evidenced by this Warrant Agreement, an amount of cash equal to the product of (a) the applicable fraction of a Warrant Share multiplied by (b) the Fair Market Value of a share of Common Stock.  

3.Exercise in Connection with an Extraordinary Transaction.  

(a)Definitions.  For purposes of this Section 3, “Extraordinary Transaction” shall mean (i) a merger or consolidation in which the Company is a constituent corporation and the shares of Common Stock are converted, exchanged or cancelled, (ii) a conversion, reorganization or reclassification of the capital stock of the Company in which the shares of Common Stock are converted, exchanged or cancelled (other than a merger or consolidation provided in clause (i) hereof), (iii) a transaction or series of related transactions which constitute(s) a sale, lease or exchange of all or substantially all of the property and assets of the Company, including its goodwill and its corporate franchises, or (iv) a transaction or series of related transactions which constitute(s) a dissolution or liquidation of the Company.

(b)If there shall occur any Extraordinary Transaction, then, to the extent not previously exercised, the purchase rights evidenced by this Warrant Agreement shall expire and terminate upon the consummation of such Extraordinary Transaction.

(c)Notwithstanding any other provision of this Warrant Agreement, if an exercise of all or any portion of the purchase rights evidenced by this Warrant Agreement is to be made in connection with an Extraordinary Transaction, the exercise of all or any portion of the purchase rights evidenced by this Warrant Agreement may, at the election of the Warrantholder, be conditioned upon the consummation of such Extraordinary Transaction, in which case, such exercise shall not be deemed to be effective until immediately prior to the consummation of such Extraordinary Transaction.

4.Stock Fully Paid; Reservation of Warrant Shares.  The Company covenants and agrees that all Warrant Shares from time to time issuable upon exercise of the purchase rights evidenced by this Warrant Agreement have been duly authorized and, when issued upon such 

{01368/0002/00223311.1}3

 

 

exercise, shall be validly issued, fully paid and non-assessable, and free from all taxes, liens and charges with respect to the issuance thereof.  The Company hereby covenants and agrees that the Company will, at all times through the Expiration Date, reserve and keep available out of its aggregate authorized but unissued shares of Common Stock, the number of Warrant Shares deliverable upon the exercise of the purchase rights evidenced by this Warrant Agreement.  

5.Adjustment.  The number of Warrant Shares purchasable upon the exercise of the purchase rights evidenced by this Warrant Agreement shall be subject to adjustment from time to time upon the occurrence of certain events, as follows:

(a)In case the outstanding shares of Common Stock shall be subdivided into a greater number of shares or combined into a smaller number of shares, the number of Warrant Shares to be received by the Warrantholder upon exercise of the purchase rights evidenced by this Warrant Agreement shall be appropriately adjusted such that the proportion of the number of Warrant Shares issuable upon exercise of the purchase rights evidenced by this Warrant Agreement to the total number of outstanding shares of Common Stock immediately prior to such subdivision or combination is equal to the proportion of the number of Warrant Shares issuable upon exercise of the purchase rights evidenced by this Warrant Agreement to the total number of outstanding shares of Common Stock immediately after such subdivision or combination.

(b)In the case the Company shall hereafter declare a dividend or distribution to all holders of the outstanding shares of Common Stock in shares of Common Stock, the number of Warrant Shares issuable upon exercise of the purchase rights evidenced by this Warrant Agreement shall be increased by dividing such number by a fraction, (i) the numerator of which shall be the number of shares of Common Stock outstanding at the close of business on such record date, and (ii) the denominator of which shall be the sum of (x) the number of shares of Common Stock outstanding at the close of business on such record date and (y) the total number of shares of Common Stock constituting such dividend or distribution.  If any dividend or distribution of the type described in this Section 5(b) is declared but not so paid or made, the number of Warrant Shares issuable upon exercise of the purchase rights evidenced by this Warrant Agreement shall again be adjusted to the number of Warrant Shares that would be issuable upon exercise of the purchase rights evidenced by this Warrant Agreement if such dividend or distribution had not been declared.  

(c)The Company will not, by amendment of its certificate of incorporation or through any reorganization, recapitalization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder by the Company, but will at times in good faith assist in the carrying out of all the provisions of this Section 5 and in the taking of all such lawful action as may be necessary or appropriate in order to protect the rights of the Warrantholder under this Section 5 against impairment.

6.Notices of Record Dates and Adjustments.  

(a)If at any time prior to the full exercise or expiration of the purchase rights evidenced by this Warrant Agreement, (i) an Extraordinary Transaction shall occur or (ii) the 

{01368/0002/00223311.1}4

 

 

Company shall make or issue, or fix a record date for the determination of holders of shares of Common Stock entitled to receive, a dividend or other distribution payable in any securities of the Company other than shares of Common Stock (including, but not limited to, any other class of capital stock or debt securities), then in each such event, the Company shall give written notice of such event at least fifteen (15) days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the stockholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up, sale or Extraordinary Transaction. Such notice shall specify such record date or the date of the closing of the transfer books, as the case may be. 

(b)Whenever an adjustment is required pursuant to Section 5, the Company shall, within thirty (30) days after such adjustment, deliver a certificate signed by its chief executive officer or chief financial officer to the Warrantholder setting forth, in reasonable detail, the event requiring the adjustment, the amount of the adjustment, the method by which such adjustment was calculated and number of Warrant Shares (or other securities) purchasable upon exercise of the purchase rights evidenced by this Warrant Agreement after giving effect to such adjustment.

7.Legend.  Each certificate evidencing Warrant Shares issued upon exercise of this Warrant shall bear the following legend substantially in the form set forth below:

“THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS.  SUCH SECURITIES CANNOT BE SOLD, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF WITHOUT REGISTRATION OF SUCH SECURITIES UNDER ALL APPLICABLE FEDERAL AND STATE SECURITIES LAWS OR COMPLIANCE WITH AN APPLICABLE EXEMPTION THEREFROM.”

8.Rights as Stockholder.  Notwithstanding any other provision of this Warrant Agreement, prior to the proper exercise of the purchase rights evidenced by this Warrant Agreement by the Warrantholder in accordance with the terms of this Warrant Agreement, no Warrantholder, as such, shall be entitled to vote or receive dividends or distributions or be deemed the holder of Warrant Shares, nor shall anything contained herein be construed to confer upon the Warrantholder, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof (or by written consent in lieu of any such meeting), or to receive notice of meetings, or to receive dividends or distributions or otherwise.  Upon the proper exercise of the purchase rights evidenced by this Warrant Agreement in accordance with the terms of this Warrant Agreement, the Warrantholder shall for all purposes be deemed to have become the holder of record of the Warrant Shares represented thereby on, and such certificate shall be dated as of, the date upon which the purchase rights evidenced by this Warrant Agreement are exercised with respect to such Warrant Shares in accordance with the terms hereof.  

{01368/0002/00223311.1}5

 

 

9.Modification and Waiver.  The Company may change, waive, discharge, terminate or amend any provision of this Warrant Agreement with the consent of Warrantholder.  

10.Termination.  The purchase rights evidenced by this Warrant Agreement shall terminate on the Expiration Date.  Notwithstanding the foregoing, the purchase rights evidenced by this Warrant Agreement will terminate on any earlier date when all of the purchase rights evidenced by this Warrant Agreement have been exercised.  

11.Notices.  Any notice required to be given or delivered to the Warrantholder or the Company shall be sent by certified or registered mail, postage prepaid, or by overnight courier, to such Warrantholder at its address indicated on the signature page of this Agreement or as shown on the books and records of the Company or to the Company at the address indicated on the signature page of this Warrant.  All such notices shall be effective on the day following the date such notice is deposited in the mails or with such overnight courier, as the case may be, in each case addressed as aforesaid, unless otherwise provided herein.  

12.Restrictions on Assignment; Transfer of Shares.  

(a)This Warrant Agreement, the purchase rights evidenced by this Warrant Agreement and the Warrant Shares issued upon the exercise of the purchase rights evidenced by this Warrant Agreement (collectively, the “Securities”) shall not be assigned, sold, pledged, transferred or otherwise disposed of except in compliance with the Securities Act of 1933, as amended, and applicable state securities laws.  None of the Securities shall be transferred unless and until: (i) the Company has received the opinion of counsel for the Warrantholder that the Securities may be transferred pursuant to an exemption from registration under the Securities Act and applicable state securities laws, the availability of which is established to the reasonable satisfaction of the Company, or (ii) a registration statement relating to the offer and sale of the Securities has been filed by the Company and declared effective by the Commission and compliance with applicable state securities law has been established.

(b)In addition to the foregoing, the Warrantholder agrees that such Warrantholder will not (i) sell, transfer, assign, pledge or hypothecate any of the Securities from the date hereof up to and including September 24, 2018 (the “Lock-Up Period”), or (ii) cause any of the Securities to be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of the Securities.  If during the last 17 days of the Lock-Up Period, (x) the Company issues an earnings release or material news or a material event relating to the Company occurs, or (y) prior to the expiration of the Lock-Up Period, the Company announces that it will release earnings results or becomes aware that material news or a material event will occur during the 16-day period beginning on the last day of the Lock-Up Period, the restrictions imposed by this Section 12(b) shall continue to apply until the expiration of the 18-day period beginning on the issuance of the earnings release or the occurrence of such material news or material event, as applicable. 

(c)In addition to the requirements set forth in Section 12(a) and Section 12(b), in order to make any permitted assignment, the Warrantholder must deliver to the Company the assignment form attached hereto duly executed and completed, together with this Warrant Agreement and payment of all transfer taxes, if any, and upon compliance with the 

{01368/0002/00223311.1}6

 

 

requirements of Section 12(a) and Section 12(b), payable in connection therewith. The Company shall within ten (10) business days after receipt of such assignment form and payment, if any, transfer this Warrant Agreement on the books of the Company and shall execute and deliver a new Warrant Agreement or Warrant Agreements of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate number of Warrant Shares purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.

13.Binding Effect on Successors.  To the fullest extent permitted by law, and except as otherwise provided in this Warrant Agreement, this Warrant Agreement shall be binding upon any entity succeeding the Company by merger, consolidation or acquisition of all or substantially all of the Company’s assets, and all of the covenants and agreements of the Company shall inure to the benefit of the successors and permitted assigns of the Warrantholder.  This Warrant Agreement shall be binding upon and inure to the benefit of the Company and the Warrantholder and their respective successors and permitted assigns.  

14.Lost Warrant Agreement.  The Company covenants to the Warrantholder that upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction, or mutilation of this Warrant Agreement and, in the case of any such loss, theft or destruction, upon receipt of the Warrantholder’s unsecured indemnification agreement, or in the case of any such mutilation upon surrender and cancellation of this Warrant Agreement, the Company will make and deliver a new Warrant Agreement in lieu of the lost, stolen, destroyed or mutilated Warrant Agreement.  

15.Governing Law.  This Warrant Agreement shall be governed in all respects by and construed in accordance with the laws of the State of Delaware (without regard to any conflict of laws principle that would apply the law of another jurisdiction), whether as to its validity, construction, capacity, performance or otherwise.  

16.Consent to Jurisdiction.  ANY LEGAL ACTION, SUIT OR PROCEEDING ARISING OUT OF OR BASED UPON THIS WARRANT AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY MAY BE INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF TEXAS, IN EACH CASE, LOCATED IN THE CITY OF AUSTIN, TEXAS, AND TO THE FULLEST EXTENT PERMITTED BY LAW, EACH PARTY IRRBVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS.  TO THE FULLEST EXTENT PERMITTED BY LAW, IN ANY SUCH ACTION, SUIT OR PROCEEDING, SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OTHER ACTION, SUIT OR PROCEEDING BROUGHT IN ANY SUCH COURT.  TO THE FULLEST EXTENT PERMITTED BY LAW, THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY ACTION, SUIT OR PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION, SUIT OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGT IN AN INCONVENIENT FORUM.  

{01368/0002/00223311.1}7

 

 

17.Waiver of Jury Trial.  EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS WARRANT AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS WARRANT AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.  EACH PARTY TO THIS WARRANT 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 17.  

 

[Signature Page Follows]

{01368/0002/00223311.1}8

 

 

IN WITNESS WHEREOF, this Warrant Agreement is executed as of the date first written above.

 

COMPANY:

GENPREX, INC.

 

/s/ RODNEY VARNER

Name: Rodney Varner

Title: Chief Executive Officer

 

Address:

1701 Trinity Street

Suite 3.322

Austin, TX 78712

 

 

ACCEPTED AND AGREED:

 

WARRANTHOLDER:

 

CANCER REVOLUTION LLC

 

 

By: /s/ VIET LY

 

Name: Viet Ly

 

Title: General Partner

 

Address:

 

5400 Carillon Point Rd

 

Building 5000 4th Floor

 

Kirkland, WA 98033

 

{01368/0002/00223311.1}

 

 

EXHIBIT A

NOTICE OF EXERCISE

Date: 

To:Genprex, Inc.

1701 Trinity Street

Suite 3.322

Austin, TX 78712

1.Notice of Exercise or Conversion; Exercise Price.  The undersigned Warrantholder, pursuant to that certain Warrant Agreement dated June __, 2018 (the “Warrant Agreement”), of Genprex, Inc., a Delaware corporation (the “Company”), in favor of the Warrantholder, hereby elects irrevocably (check and complete one of the following): 

	
___
	
to exercise the purchase rights evidenced by the Warrant Agreement with respect to ______ shares of Common Stock (each a “Share” and collectively, the “Shares”), and the Warrantholder hereby makes payment of $____ (at the rate of $____ per Share) in cash in payment of the Exercise Price pursuant to the terms and conditions of the Warrant Agreement;

 

or

 

	
___ 
	
to convert its right to purchase ___ Shares under the Warrant Agreement for ______ Shares, as determined in accordance with the following formula:

 

X = Y(A-B)/A

where

 

X = The number of Shares to be issued to the Warrantholder;

Y = The number of Shares for which the purchase rights evidenced by the Warrant Agreement are being exercised;

A = The Fair Market Value of one Share, which is equal to $_____; and

B = The Exercise Price, which is equal to $______ per share; and 

 

The undersigned agrees and acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement with respect to the calculation shall be resolved by the Company in its sole discretion.

{01368/0002/00223311.1}

 

 

2.Issuance of Shares.  The Company will issue and register (a) the Shares as to which the purchase rights evidenced by this Warrant Agreement are exercised in accordance with the instructions given below and (b), if applicable, a new Warrant Agreement representing the number of Shares for which the purchase rights evidenced by this Warrant Agreement have not been converted.

 

 

Name:     ____________________________

    (Print in Block Letters)

 

 

Address:  ____________________________

 

    ____________________________

 

    ____________________________

 

 

WARRANTHOLDER:

 

 

 

 

By: 

 

Name: 

 

Title: 

 

Signature Guaranteed____________________________________

 

NOTICE: The signature to this Notice of Exercise must correspond with the name as written upon the face of the Warrant Agreement without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national securities exchange.

 

{01368/0002/00223311.1}

 

 

[Form to be used to assign Purchase Warrant]

 

ASSIGNMENT

 

(To be executed by the registered Warrantholder to effect a transfer of the Warrant Agreement and the purchase rights evidenced by the Warrant Agreement):

 

FOR VALUE RECEIVED, __________________ does hereby sell, assign and transfer unto ____________________ the right to purchase shares of common stock, par value $0.001 per share, of Genprex, Inc., a Delaware corporation (the “Company”), evidenced by the Warrant Agreement and does hereby authorize the Company to transfer such right on the books of the Company.

 

Dated: __________, 20__

 

By: 

 

Name: 

 

Title: 

 

Signature Guaranteed ___________________________

 

NOTICE: The signature to this form must correspond with the name as written upon the face of the Warrant Agreement without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national securities exchange.

 

 

 

{01368/0002/00223311.1}

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