Document:

Loan
and Option Agreement

 

Date:

 

PARTIES

 

Court
Cavendish Ltd, a company incorporated in England and Wales under no. 04290684, having its registered address at The Care House,
Randalls Way, Leatherhead, Surrey, KT22 7TW (the “Lender”).

 

Long
Island Iced Tea Corp., a Delaware corporation, having its principal executive offices at 12-1 Dubon Court, Farmingdale, New
York 11735 (the “Company”).

 

BACKGROUND

 

	A.	The
    Lender and the Company have agreed to a facility in which the Lender provides financing to support the working capital requirements
    of the Company while the Company moves into specific ventures relating to blockchain technology with the Company intending
    to spin out of its existing operating business into an independent new company in due course.
	 	 
	B.	The
    parties have agreed to enter into this agreement to record the agreed terms (the “Agreement”).

 

IT
IS AGREED

 

	1.	Simultaneously
    with the execution of this Agreement, and the Company having announced to the market its move to blockchain technology, the
    Lender will make available to the Company an aggregate of USD 2,000,000 (together with any additional amounts loaned pursuant
    to this Agreement, the “Loan”) facility. Subject to the conversion provisions set forth herein, the Loan and any
    accrued interest thereon will be due and payable 12 months from the 1st drawdown (the “Maturity Date”).
	 	 
	2.	As
    long as the Company is compliant with its Nasdaq regulations, the Company may request as long as certain warranties and representations
    referred to in section 18 below are met and the Company continues moving toward specific ventures related to blockchain technology,
    for two (2) extensions of USD 1,000,000 each to this Agreement on the same terms as terms of this Agreement, save for the
    directors’ appointment referred to in section 5 below.
	 	 
	3.	The
    Company may request the maximum of one (1) drawdown per month with the drawdown amount to be agreed between parties each time
    a request is made. The Lender agrees to provide a maximum initial drawdown of USD 750,000 upon the execution of this Agreement,
    a maximum drawdown of USD 750,000 beginning January 15, 2018 and a maximum of USD 500,000 beginning February 15th,
    2018. Each drawdown shall be subject to a material adverse change provision in the Lender’s opinion on the financial
    condition or operations of the Company.
	 	 
	4.	A
    Facility Fee of 5% shall be due on the entire amount made available to the Company on the date of the first drawdown of each
    facility and payable either in cash or in shares of the Company valued at the lower of USD 3.00 or the closing price per share
    on the date of the first drawdown.
	 	 
	 	A
    Facility Fee of 5% shall be due and payable on the same terms as described above on each, if any, facility extensions granted
    by the Lender.
	 	 
	 	Notwithstanding
    anything to the foregoing, the fee shall in no event be convertible into more than 9.9% of the aggregate shares outstanding
    of the Company on the date of this Agreement.
	 	 
	5.	On
    the date of this Agreement, the Lender shall have the right to appoint 2 new members to the Company’s Board of Directors,
    which such members shall be mutually agreed between the Company and the Lender. The appointment of the Lender’s directors
    to take place within 5 business days after such mutual agreement

 

    	 	 	 

    	 

    

 

	6.	The
    Company will create a committee on its Board of Directors, consisting of 3 directors and shall include the 2 directors appointed
    by the Lender. Such committee will have to unanimously authorize any expense related to the Company’s existing operating
    beverage business that exceeds USD 100,000.
	 	 
	7.	The
    Company agrees to issue within 5 business days of the date of this Agreement, 100,000 ,36 month warrants to the Lender (which
    will contain a cashless exercise feature). The warrants shall give the Lender the ability to convert to shares of the Company
    at USD 3.00 per share. If the Lender agrees further extensions as per clause 2, the Company agrees to issue 50,000 36 month
    warrants on terms described above for each USD 1,000,000 facility made available.
	 	 
	8.	Interest
    shall accrue monthly, at a rate of 12.5% per annum, on the unpaid principal balance of the Loan commencing on the date of
    the first drawdown and shall be due and payable, without demand or notice, at the Company’s election quarterly in cash
    or in shares of the Company valued at the lower of USD 3.00 or the closing price per share on the preceding date the interest
    payment is due, provided the shares are not converted into more than 9.9% of the aggregate shares outstanding of the Company
    on the date of this Agreement for all interest owed hereunder.
	 	 
	9.	The
    Company hereby grants the Lender a security interest in all of the Company’s assets (the “Collateral”),
    subject to security granted to Radium for its $1,000,000 facility on the date hereof. Reference herein to the Collateral shall
    in no way impair the absolute and unconditional obligation of the Company to pay both principal and interest, if any, as provided
    herein.
	 	 
	10.	The
    Lender may, with or without advance notice to the Company or any guarantor or other party liable herefor, extend or renew
    the Loan, or extend the time for making payment of any amount provided for herein, or accept any amount in advance, all without
    affecting the liability of the Company or any other party or guarantor liable herefor.
	 	 
	11.	The
    Company may repay the Loan in whole or in part at any time without penalty or premium, but with payment of accrued interest
    through the date of such repayment. Amounts repaid shall not be available to be drawn again.
	 	 
	12.	At
    the Maturity Date, at the Lenders election, the Company shall repay the outstanding amount together with accrued interest
    either in cash or in shares of the Company at the lower of USD 3.00 or the closing price per share on the Maturity Date, but
    not lower than USD 2.00 per share, provided that in no event shall the Company issue in excess of 9.9% of the aggregate shares
    outstanding of the Company on the date of this Agreement for all repayments hereunder
	 	 
	13.	In
    consideration of Lender making the Loan to the Company, the Company hereby grants Lender the option (the “Option”),
    at any time until the Maturity Date, to convert all amounts under this Agreement (whether drawn and outstanding and/or undrawn
    and available) including accrued interest, into shares of the Company at the lower of USD 3.00 or the closing price per share
    on the date of the exercise of the Option, but not lower than USD 2.00 per share, provided that in no event will the shares
    issuable upon exercise of the Option exceed 9.9% of the aggregate shares outstanding of the Company on the date of this Agreement
	 	 
	14.	During
    the lifetime of this Agreement, the Company shall provide reasonable updates to the Lender, within the constraints of the
    law and government agencies, at no greater than monthly intervals. Lender agrees use of such information is to monitor the
    loan.

 

    	 	 	 

    	 

    

 

	15.	So
    long as the Loan is outstanding and the Option has not been forfeited, the Company will not, without the prior written consent
    of Lender, do any of the following: (i) liquidate, dissolve or wind-up the affairs of the company or enter into merger, consolidation,
    share exchange, reorganisation, recapitalization or other similar transaction or business combination (with the exception
    of the Spin Out of Beverage business); (ii) sell additional shares of the Company (excluding upon exercise of outstanding
    options, and other similar) at a price per share less than USD3; (iii) purchase or redeem or pay any dividend on any capital
    stock; (iv) create or authorize the creation of any debt security senior to the Note(s) (excluding the security held by Radium
    on its USD 1,000,000 facility on the date hereof); (v) enter into any agreement or other binding commitment to do any of the
    foregoing. If the Company receives any inquiry, proposal, offer or expression of interest by any person (other than Lender
    and its affiliates) with respect to any of the foregoing, it shall promptly notify Lender.
	 	 
	16.	Upon
    the occurrence of a default, the whole sum of principal and accrued interest shall become due immediately at the option of
    the Lender. Default shall include, but not be limited to: (i) any material adverse change, in the reasonable opinion of the
    Lender, in the financial condition or operations of the Company; (ii) any change in control of the Company without the prior
    written consent of the Lender; (iii) failure to make any payment hereunder at the time prescribed for payment; (iv) filing,
    as to the Company or any guarantor or endorser of the Loan, of an involuntary petition which is not dismissed within sixty
    (60) days or of a voluntary petition under the provisions of the Federal Bankruptcy Code or any state statute for the relief
    of debtors; (v) default in the payment of principal or interest on any obligation in excess of $100,000 for borrowed money
    beyond the period of grace, if any, provided with respect thereto or default in the performance or observance of any other
    term, condition or agreement contained in any such obligation or in any agreement relating thereto, if the effect thereof
    is to cause, or permit the holder or holders of such obligation (or a trustee on behalf of such holder or holders) to cause
    such obligation to become due prior to its stated maturity and such default remains unremedied for a period of 10 days; (vi)
    final judgment for the payment of money in excess of $100,000 shall be rendered against the Company and the same shall remain
    undischarged for a period of thirty (30) days during which execution of such judgment shall not be effectively stayed or is
    not being validly contested; or (vii) any material breach or other default by the Company under this Agreement which is not
    cured within five (5) days after the Maker receives notice from the Holder of the occurrence thereof.
	 	 
	17.	The
    times for the payment of the principal sum as herein stated are of the essence of this Agreement. Upon the occurrence of a
    default, the amount of the principal sum hereunder, plus reasonable attorneys’ fees and expenses, shall bear interest
    from the date thereof to the actual date of payment (whether such payment is made voluntarily or as a result of legal process)
    at the maximum rate of interest permitted by law or 17.5% per annum, whichever is lower, from the date of the default to the
    date of actual payment.
	 	 
	18.	The
    Company represents and warrants to the Lender as follows: (i) the Company is a company duly incorporated and existing under
    the laws of the State of Delaware publically trading on Nasdaq; (ii) the Company has the power to enter into, perform and
    comply with its obligations under this Agreement and all corporate and other action required to authorise the execution of
    this Agreement and the performance by the Company of its obligations under this Agreement has been taken; (iii) no event of
    default has occurred, or in the Lender’s reasonable opinion will occur as a result of any drawdown of facility, and
    the Company is not in default under any other agreement to which it is a party; and (iv) this Agreement constitutes the legal,
    valid and binding obligations of the Company.
	 	 
	 	Each
    of the representations and warranties hereon shall be deemed repeated on each date on which a drawdown is requested by reference
    to the facts and circumstances then subsisting.
	 	 
	19.	Each
    party shall bear its own expenses in connection with the transactions contemplated hereby.

 

    	 	 	 

    	 

    

 

	20.	Any
    and all notices required or permitted to be given under any provision of this Agreement shall be in writing and shall be deemed
    given upon personal delivery or the mailing thereof by first class certified mail, return receipt requested, by telecopier
    or facsimile, or by overnight delivery service to the addresses set forth above or at such other addresses as they may have
    provided by prior written notice.
	 	 
	21.	This
    Agreement shall not be assignable by Lender without the prior written approval of the Company. This Agreement shall not be
    assignable by the Company without the prior written approval of the Lender.
	 	 
	22.	This
    Agreement shall be governed by and constructed in accordance with the law of the State of New York without giving effect to
    principles of conflicts of law. This Agreement may be signed in counterparts which, taken together, shall constitute one Agreement.
	 	 
	23.	Notwithstanding
    anything contained herein to the contrary, in no event will the Company issue to the Lender a number of shares of common stock
    in excess of 19.99% of the outstanding common stock of the Company on the date of this Agreement in exchange for payment of
    any principal or interest owed her under or upon exercise of any warrants issue hereunder. 

 

EXECUTED
AS AN AGREEMENT

 

	Court
                                         Cavendish Ltd:

        

        
	Long
                                         Island Iced Tea Corp.:

        

        

        

        

	 	 
	_____________________________	__________________________
	Director	 
	 	 
	In
    the presence of:	In
    the presence of:
	 	 
	_____________________________
	__________________________
	Witness
    sign here	Witness
    sign here
	 	 
	Witness
    name:

    Witness address:	Witness
    name:

    Witness address:EX-10.1

 Exhibit 10.1 

December 20, 2017 
 Scott M. Plesha 

1410 Smythe Street 
 Daniel Island, SC 29492 

 

	 	Re:	Offer of Promotion 

 Dear Scott: 

BioDelivery Sciences International, Inc. (BDSI) is pleased to extend to you an offer of a promotion to President. In this position, you will be
reporting to the Board of Directors until such time as a new Chief Executive Officer (CEO) is appointed, at which time you will report to the CEO. 

In the role of President, you will be responsible, in accordance with the directives of the Board and CEO, for assisting with the overall
management of BDSI’s operations and the supervision of all subordinate officers and employees. You will also continue to directly oversee the Sales and Marketing Functions of BDSI and be responsible for creating and managing a budget for your
area of responsibility. 
 If you decide to accept this offer, your proposed starting date in your new position will be January 3,
2018. You will receive an annual salary of $365,000.00 (three hundred sixty-five thousand dollars) payable bi-weekly. Your bonus target will be 45% of salary. This salary and bonus target are offered subject
to approval by BDSI’s compensation committee. Annual adjustments to salary, as well as bonus any additional stock option or RSU awards are at the discretion of the Board of Directors and based on meeting personal and corporate objectives for
the year. You will also be provided with 4 weeks paid vacation according to BDSI’s Vacation Policy in addition to 11 company-paid holidays each year. 

Upon acceptance of this offer, you will continue to participate in the following benefits, in accordance with our policies as they may
change from time to time: 
  

	 	•	 	Health insurance 

  

	 	•	 	Dental Insurance 

  

	 	•	 	Basic Life & Accidental Death & Dismemberment Insurance 

  

	 	•	 	Long and Short Term Disability Insurance 

  

	 	•	 	401(k) Plan (after 60 days) with Employer match 

  

	 	•	 	Employee Stock Options Plan 

 Additionally, as a Regular, Full-time employee, you will continue
to be entitled to six paid sick days due to illness in accordance with BDSI’s Sick Leave Policy, which may be modified from time to time, at the discretion of the Board of Directors. 

This agreement will have a term of one year running January 2, 2018 through January 2, 2019. This agreement will be subject to
successive one-year renewals unless either party gives notice of non-extension at least 30 days prior to the end of any term. 

 BDSI may terminate your employment without cause at any time. You agree to give 30 days’
notice of any resignation. If BDSI terminates your employment other than for “Cause” (as defined below), or when your employment terminates in the case of your death or permanent disability, BDSI will pay you a one-time cash severance payment equal to your full year’s base salary and a pro-rata bonus based on your bonus target; otherwise, you will be entitled to a one-time cash severance payment equal 50% of your full year’s base salary. 
 As used herein, the
term “Cause” means (i) a continuing material breach or material default (including, without limitation, any material dereliction of duty) by you of any agreement between you and BDSI or your continuing failure to follow the direction
of your direct report, BDSI’s Chief Executive Officer or BDSI’s Board of Directors; (ii) your gross negligence, willful misfeasance or breach of fiduciary duty; (iii) your commission of an act of fraud, embezzlement or any felony
or crime of dishonesty in connection with your duties with BDSI; or (iv) your conviction of a felony or any other crime that would materially and adversely affect: (a) BDSI’s business reputation or (ii) the performance of your
duties for BDSI that includes meeting your performance objectives. In the event of a termination of your employment for Cause, BDSI will pay your salary and expenses reimbursable incurred through the date of termination, and thereafter BDSI shall
have no further responsibility for termination or other payments to you. 
 In addition, if your employment with BDSI is terminated by BDSI
or its successor within six (6) months following the occurrence of a “Change of Control” (as defined below) (a “Severance Triggering Event”), then: (i) you will be entitled to a
one-time cash severance payment equal to the amount your then current annual base salary; (ii) you will receive a pro-rata bonus based on your annual target bonus;
(iii) you shall maintain any rights that you may have been specifically granted pursuant to any of BDSI’s or its successor’s retirement plans, supplementary retirement plans, profit sharing and savings plans, healthcare, 401(k) and
any other employee benefit plans sponsored by BDSI or its successor and (iv) all unvested options or other equity securities to acquire shares of BDSI common stock granted to you under BDSI’s 2011 Equity Incentive Plan or any similar plan
(the “Plan”) shall immediately become fully vested and shall be exercisable to the extent provide for in the Plan. Following BDSI or its successor’s compliance with clauses (i), (ii), (iii) and (iv) above, BDSI or its successor
shall have no further obligations to you following termination. In addition, upon any termination of your employment by BDSI, should BDSI agree in its discretion to pay you severance, a condition to the payment of any severance amount or
post-termination benefit shall be: (i) BDSI’s concurrent receipt of a general release by you of all claims against BDSI and its affiliates in the form reasonably acceptable to you and BDSI and (ii) that all such payments shall comply
with Section 409A of the Internal Revenue Code of 1986, as amended, and all regulations promulgated thereunder. 
 For purposes of the
foregoing, the term “Change of Control” means the occurrence of any one or more of the following events (it being agreed that, with respect to paragraphs (i) and (iii) of this definition below, a “Change of Control” shall
not be deemed to have occurred if the applicable third party acquiring party is an “affiliate” of BDSI within the meaning of Rule 405 promulgated under the Securities Act of 1933, as amended): (i) an acquisition (whether directly from BDSI
or otherwise) of any voting securities of BDSI (the “Voting Securities”) by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities and Exchange Act of 1934, as amended (the
“1934 Act”)), immediately after which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated under the 1934 Act) of forty percent (40%) or more of the combined
voting power of the BDSI’s then outstanding Voting Securities; (ii) the individuals who, as of the date hereof, are members of BDSI’s Board of Directors cease, by reason of a financing, merger, combination, acquisition, takeover or
other non-ordinary course transaction affecting BDSI, to constitute at least fifty-one percent (51%) of the members of BDSI’s Board of Directors; or (iii) the
consummation of: (A) a merger, consolidation or reorganization involving BDSI, where either or both of the events described in clauses (i) or (ii) above would be the result; (B) a liquidation or dissolution of or appointment of a
receiver, rehabilitator, conservator or similar person for, or the filing by a third party of an involuntary bankruptcy against, BDSI; or (C) an agreement for the sale or other disposition of all or substantially all of the assets of BDSI to
any Person (other than a transfer to a subsidiary of BDSI). 

 You agree that your existing two-year non-competition and non-solicitation agreements with BDSI shall remain in effect. You further agree that any prior confidentiality agreement you have with the Company shall
remain in effect. 
 To formally accept this offer, please sign in the appropriate place below and return an executed copy of this letter to
me. Please retain an executed copy of this letter for your own records. 
 We are excited about the future of BDSI and your contribution to
our success. I look forward to hearing from you regarding this offer. 
  

	
	Regards,
	
	/s/ Mark A. Sirgo
	Mark A. Sirgo, PharmD
	President and Chief Executive Officer
	BioDelivery Sciences International, Inc.

 Acknowledged and agreed as of the date set forth below: 

 

	
	/s/ Scott M. Plesha
	Scott M. Plesha
	Dated: December 20, 2017

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00277-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00277-of-00352.parquet"}]]