Document:

Exhibit 10.1

 

 

SERIES A PREFERRED STOCK
PURCHASE AGREEMENT

 

This SERIES A PREFERRED STOCK PURCHASE
AGREEMENT (the “Agreement”), dated as of July 18, 2022, by and between EDGEMODE, INC. f/k/a FOURTH WAVE ENERGY, INC.,
a Nevada corporation, with its address at 110 E. Broward Blvd., Suite 1700, Ft. Lauderdale, FL 33301 (the “Company”), and
1800 DIAGONAL LENDING LLC, a Virginia limited liability company, with its address at 1800 Diagonal Road, Suite 623, Alexandria
VA 22314 (the “Buyer”).

 

WHEREAS:

 

A.                 
The Company and the Buyer are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the rules and regulations as promulgated by the United States Securities and Exchange Commission (the “SEC”) under
the Securities Act of 1933, as amended (the “1933 Act”); and

 

B.                 
Buyer desires to purchase and the Company desires to issue and sell, upon the terms and conditions set forth in this Agreement,
78,750 shares of Series A Preferred Stock of the Company (“Series A Shares”) with the rights and preferences as set forth
on the Certificate of Designation of the Series A Preferred Stock attached hereto as Exhibit A (“Certificate of Designation”).

 

NOW THEREFORE,
in consideration of the mutual covenants and agreements contained herein, the receipt and sufficiency of which are hereby acknowledged,
the Company and the Buyer severally (and not jointly) hereby agree as follows:

 

		1.	Purchase and Sale of Series A Shares.

 

a.                   Purchase of Series A Shares. On the Closing Date (as defined below), the Company shall issue and sell to the Buyer and the
Buyer agrees to purchase from the Company 78,750 Series A Shares with the rights and preferences as set forth in the Certificate of Designation.

 

b.                   Form of Payment. On the Closing Date (as defined below), (i) the Buyer shall pay $78,750.00 for the Series A Shares to be
issued and sold to it at the Closing (as defined below) (the “Purchase Price”) by wire transfer of immediately available funds
to the Company, in accordance with the Company’s written wiring instructions, against delivery of the Series A Shares, and (ii)
the Company shall deliver such duly executed and authorized Series A Shares on behalf of the Company, to the Buyer, against delivery of
such Purchase Price.

 

c.                   Closing Date. Subject to the satisfaction (or written waiver) of the conditions set forth in Section 6 and Section 7 below,
the date and time of the issuance and sale of the Series A Shares pursuant to this Agreement (the “Closing Date”) shall be
12:00 noon, Eastern Standard Time on or about July 19, 2022, or such other mutually agreed upon time. The closing of the transactions
contemplated by this Agreement (the “Closing”) shall occur on the Closing Date at such location as may be agreed to by the
parties.

 

	 	2.	Buyer’s Representations and Warranties. The Buyer represents and warrants to the Company that:

 

a.                   The Buyer has full power and authority to enter into this Agreement, the execution and delivery of which has been duly authorized
and this Agreement constitutes a valid and legally binding obligation of the Buyer, except as may be limited by bankruptcy, reorganization,
insolvency, moratorium and similar laws of general application relating to or affecting the enforcement of rights of creditors, and except
as enforceability of the obligations hereunder are subject to general principles of equity (regardless of whether such enforceability
is considered in a proceeding in equity or law).

 

 

 

 

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b.                   The Buyer acknowledges its understanding that the offering and sale of the Series A Shares and the shares of common stock issuable
upon conversion of the Series A Shares (such shares of common stock being collectively referred to herein as the “Conversion Shares”
and, collectively with the Series A Shares, the “Securities”) is intended to be exempt from registration under the 1933 Act,
by virtue of Rule 506(b) promulgated under the Securities Act of 1933, as amended, and the provisions of Regulation D promulgated thereunder.
In furtherance thereof, the Buyer represents and warrants to the Company and its affiliates as follows:

 

i.                     The Buyer realizes that the basis for the exemption from registration may not be available if, notwithstanding the Buyer’s
representations contained herein, the Buyer is merely acquiring the Securities for a fixed or determinable period in the future, or for
a market rise, or for sale if the market does not rise. The Buyer does not have any such intention.

 

ii.                    The Buyer realizes that the basis for exemption would not be available if the offering is part of a plan or scheme to evade registration
provisions of the 1933 Act or any applicable state or federal securities laws, except sales pursuant to a registration statement or sales
that are exempted under the 1933 Act.

 

iii.                   The Buyer is acquiring the Securities solely for the Buyer’s own beneficial account, for investment purposes, and not with
a view towards, or resale in connection with, any distribution of the Securities.

 

iv.                   The Buyer has the financial ability to bear the economic risk of the Buyer’s investment, has adequate means for providing
for its current needs and contingencies, and has no need for liquidity with respect to an investment in the Company.

 

v.                    The Buyer and the Buyer’s attorney, accountant, purchaser representative and/or tax advisor, if any (collectively, the “Advisors”)
has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of a prospective
investment in the Securities. The Buyer also represents it has not been organized solely for the purpose of acquiring the Securities.

 

vii.                  The Buyer
(together with its Advisors, if any) has received all documents requested by the Buyer, if any, and has carefully reviewed them and understands
the information contained therein, prior to the execution of this Agreement.

 

c.                   The Buyer is not relying on the Company or any of its employees, agents, sub-agents or advisors with respect to the legal, tax,
economic and related considerations involved in this investment. The Buyer has relied on the advice of, or has consulted with, only its
Advisors.

 

d.                   The Buyer has carefully considered the potential risks relating to the Company and a purchase of the Securities, and fully understands
that the Securities are a speculative investment that involves a high degree of risk of loss of the Buyer’s entire investment. Among
other things, the Buyer has carefully considered each of the risks described under the heading “Risk Factors” in the
Company’s SEC filings.

 

e.                   The Buyer will not sell or otherwise transfer any Securities without registration under the 1933 Act or an exemption therefrom,
and fully understands and agrees that the Buyer must bear the economic risk of its purchase because, among other reasons, the Securities
have not been registered under the 1933 Act or under the securities laws of any state and, therefore, cannot be resold, pledged, assigned
or otherwise disposed of unless they are subsequently registered under the 1933 Act and under the applicable securities laws of such states,
or an exemption from such registration is available. In particular, the Buyer is aware that the Securities are “restricted securities,”
as such term is defined in Rule 144, and they may not be sold pursuant to Rule 144 unless all of the conditions of Rule 144 are met. The
Buyer also understands that the Company is under no obligation to register the Securities on behalf of the Buyer. The Buyer understands
that any sales or transfers of the Securities are further restricted by state securities laws and the provisions of this Agreement.

 

 

 

 

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f.                    The Buyer and its Advisors, if any, have had a reasonable opportunity to ask questions of and receive answers from a person or
persons acting on behalf of the Company concerning the offering and the business, financial condition, results of operations and prospects
of the Company, and all such questions have been answered to the full satisfaction of the Buyer and its Advisors, if any.

 

g.                   The
Buyer represents and warrants that: (i) the Buyer was contacted regarding the sale of the Securities by the Company (or an authorized
agent or representative thereof) with whom the Buyer had a prior substantial pre-existing relationship; and (ii) no Securities were offered
or sold to it by means of any form of general solicitation or general advertising, and in connection therewith, the Buyer did not: (A)
receive or review any advertisement, article, notice or other communication published in a newspaper or magazine or similar media or
broadcast over television or radio, whether closed circuit, or generally available; or (B) attend any seminar meeting or industry investor
conference whose attendees were invited by any general solicitation or general advertising; or (C) observe any website or filing of the
Company with the SEC in which any offering of securities by the Company was described and as a result learned of any offering of securities
by the Company.

 

h.                  
The Buyer has taken no action that would give rise to any claim by any person for brokerage commissions, finders’ fees or
the like relating to this Agreement or the transactions contemplated hereby.

 

i.                    The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D.

 

j.                    
Legends. The Buyer understands that until such time as the Securities have been registered under the 1933 Act or may be
sold pursuant to an applicable exemption from registration, the Securities shall bear a restrictive legend in substantially the following
form:

 

"THE SECURITIES REPRESENTED
BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER ANY
STATE SECURITIES LAWS, AND MAY NOT BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT
WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR (2) THE ISSUER OF SUCH SECURITIES
RECEIVES AN OPINION OF COUNSEL TO THE HOLDER OF SUCH SECURITIES, WHICH COUNSEL AND OPINION ARE REASONABLY ACCEPTABLE TO THE ISSUER’S
TRANSFER AGENT, THAT SUCH SECURITIES MAY BE PLEDGED, SOLD, ASSIGNED, HYPOTHECATED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS."

 

The legend
set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which
it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an effective
registration statement filed under the 1933 Act or otherwise may be sold pursuant to an exemption from registration without any restriction
as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides the Company with
an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a
public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion shall be accepted by the Company
so that the sale or transfer is effected. The Buyer agrees to sell all Securities, including those represented by a certificate(s) from
which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any. In the event that the Company
does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from
registration, such as Rule 144, at the Deadline (as defined in the Certificate of Designation), it will be considered an Event of Default
(as defined in the Certificate of Designation).

 

	 	3.	Representations and Warranties of the Company. The Company represents and warrants to the Buyer that:

 

a.                   Organization and Qualification. The Company and each of its Subsidiaries (as defined below), if any, is a corporation duly
organized, validly existing and in good standing under the laws of the jurisdiction in which it is incorporated, with full power and authority
(corporate and other) to own, lease, use and operate its properties and to carry on its business as and where now owned, leased, used,
operated and conducted. “Subsidiaries” means any corporation or other organization, whether incorporated or unincorporated,
in which the Company owns, directly or indirectly, any equity or other ownership interest.

 

 

 

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b.                   Authorization;
Enforcement. (i) The Company has all requisite corporate power and authority to enter into and perform this Agreement and to consummate
the transactions contemplated hereby and thereby and to issue the Securities, in accordance with the terms hereof and thereof, (ii) the
execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby and thereby
(including without limitation, the issuance of the Series A Shares and the issuance and reservation for issuance of the Conversion Shares
issuable upon conversion or exercise thereof) have been duly authorized by the Company’s Board of Directors and no further consent
or authorization of the Company, its Board of Directors, or its shareholders is required, (iii) this Agreement has been duly executed
and delivered by the Company by its authorized representative, and such authorized representative is the true and official representative
with authority to sign this Agreement and the other documents executed in connection herewith and bind the Company accordingly, and (iv)
this Agreement constitutes, and upon execution and delivery by the Company of the Series A Shares, each of such instruments will constitute,
a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms except as may be limited
by bankruptcy, reorganization, insolvency, moratorium and similar laws of general application relating to or affecting the enforcement
of rights of creditors, and except as enforceability of the obligations hereunder are subject to general principles of equity (regardless
of whether such enforceability is considered in a proceeding in equity or law).

 

c.                  
Capitalization. As of the date hereof, the authorized common stock of the Company consists of 500,000,000 authorized shares
of common stock, $0.001 par value per share, of which 383,858,340 shares are issued and outstanding and 5,000,000 shares of preferred
stock, par value

$0.0001 per share of which no shares
are issued and outstanding. On or prior to the Closing Date, the Certificate of Designation shall be filed with the Nevada Secretary of
State authorizing 1,000,000 Series A Shares with an initial stated value of $1.00. All of such outstanding shares of capital stock are
duly authorized, validly issued, fully paid and non-assessable.

 

d.                  
Issuance of Securities. The Securities upon issuance will be validly issued, fully paid and non-assessable, and free from
all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar
rights of shareholders of the Company and will not impose personal liability upon the holder thereof.

 

e.                   No
Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby (including, without limitation, the issuance of the Securities and reservation for
issuance of the Conversion Shares) will not (i) conflict with or result in a violation of any provision of the Articles of
Incorporation, as amended or By-laws, or (ii) violate or conflict with, or result in a breach of any provision of, or constitute a
default (or an event which with notice or lapse of time or both could become a default) under, or give to others any rights of
termination, amendment, acceleration or cancellation of, any agreement, indenture, patent, patent license or instrument to which the
Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or
decree (including federal and state securities laws and regulations and regulations of any self-regulatory organizations to which
the Company or its securities are subject) applicable to the Company or any of its Subsidiaries or by which any property or asset of
the Company or any of its Subsidiaries is bound or affected (except for such conflicts, defaults, terminations, amendments,
accelerations, cancellations and violations as would not, individually or in the aggregate, have a Material Adverse Effect (as
defined herein)). The businesses of the Company and its Subsidiaries, if any, are not being conducted, and shall not be conducted so
long as the Buyer owns any of the Securities, in violation of any law, ordinance or regulation of any governmental entity.
“Material Adverse Effect” means any material adverse effect on the business, operations, assets or financial condition
of the Company or its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements or
instruments to be entered into in connection herewith.

 

 

 

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f.                    SEC Documents; Financial Statements. Since February 7, 2022, the Company has filed all material reports, schedules, forms,
statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the Securities Exchange
Act of 1934, as amended (the “1934 Act”) (all of the foregoing filed prior to the date hereof and all exhibits included therein
and financial statements and schedules thereto and documents (other than exhibits to such documents) incorporated by reference therein,
being hereinafter referred to herein as the “SEC Documents”). Upon written request the Company will deliver to the Buyer true
and complete copies of the SEC Documents, except for such exhibits and incorporated documents. As of their respective dates or if amended,
as of the dates of the amendments, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules
and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were
filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. None of
the statements made in any such SEC Documents is, or has been, required to be amended or updated under applicable law (except for such
statements as have been amended or updated in subsequent filings prior the date hereof). As of their respective dates or if amended, as
of the dates of the amendments, the financial statements of the Company included in the SEC Documents complied as to form in all material
respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial
statements have been prepared in accordance with United States generally accepted accounting principles, consistently applied, during
the periods involved and fairly present in all material respects the consolidated financial position of the Company and its consolidated
Subsidiaries as of the dates thereof and the consolidated results of their operations and cash flows for the periods then ended (subject,
in the case of unaudited statements, to normal year-end audit adjustments). The Company is subject to the reporting requirements of the
1934 Act.

 

g.                   Absence of Certain Changes. Since March 31, 2022, except as set forth in the SEC Documents, there has been no material adverse
change and no material adverse development in the assets, liabilities, business, properties, operations, financial condition, results
of operations, prospects or 1934 Act reporting status of the Company or any of its Subsidiaries.

 

h.                   Absence of Litigation. Except as set forth in the SEC Documents, there is no action, suit, claim, proceeding, inquiry or
investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge
of the Company or any of its Subsidiaries, threatened against or affecting the Company or any of its Subsidiaries, or their officers or
directors in their capacity as such, that could have a Material Adverse Effect. The Company and its Subsidiaries are unaware of any facts
or circumstances which might give rise to any of the foregoing.

 

i.                    
No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person acting on its or their behalf, has
directly or indirectly made any offers or sales in any security or solicited any offers to buy any security under circumstances that would
require registration under the 1933 Act of the issuance of the Securities to the Buyer. The issuance of the Securities to the Buyer will
not be integrated with any other issuance of the Company’s securities (past, current or future) for purposes of any shareholder
approval provisions applicable to the Company or its securities.

 

j.                    
No Investment Company. The Company is not, and upon the issuance and sale of the Securities as contemplated by this Agreement
will not be an “investment company” required to be registered under the Investment Company Act of 1940 (an “Investment
Company”). The Company is not controlled by an Investment Company.

 

		4.	COVENANTS.

 

a.                   Best Efforts. The Company shall use its commercially reasonable efforts to satisfy timely each of the conditions described
in Section 7 of this Agreement.

 

b.                  
Form D; Blue Sky Laws. The Company agrees to timely make any filings required by federal and state laws as a result of the
closing of the transactions contemplated by this Agreement.

 

c.                  
Use of Proceeds. The Company shall use the proceeds for general working capital purposes.

 

d.                  
Expenses. At the Closing, the Company’s obligation with respect to the transactions contemplated by this Agreement
is to reimburse Buyer’s expenses for Buyer’s legal fees and due diligence fee in an amount not to exceed $3,750.00.

 

 

 

 

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e.                  
Corporate Existence. So long as the Buyer beneficially owns any Series A Shares, the Company shall maintain its corporate
existence and shall not sell all or substantially all of the Company’s assets, except with the prior written consent of the Buyer.

 

f.                   
Breach of Covenants. If the Company breaches any of the covenants set forth in this Section 4, and in addition to any other
remedies available to the Buyer pursuant to this Agreement, it will be considered an event of default under the Certificate of Designation.

 

g.                  
Failure to Comply with the 1934 Act/Negative Designation Removal. So long as the Buyer beneficially owns any Series A Shares,
the Company shall comply with the reporting requirements of the 1934 Act; the Company shall continue to be subject to the reporting requirements
of the 1934 Act; and, if OTCMarkets.com designates the Company as “Caveat Emptor” or “Shell Risk” (collectively,
“Negative Designation”), the Company shall immediately cause OTCMarkets.com to remove such designation (any Negative Designation
shall in any case be removed from OTCMarkets within twenty (20) days or such failure shall be an Event of Default pursuant to the Note);
any breach of the foregoing shall be considered an event of default under the Certificate of Designation.

 

h.                  
Trading Activities. Neither the Buyer nor its affiliates has an open short position in the common stock of the Company and
the Buyer agrees that it shall not, and that it will cause its affiliates not to, engage in any short sales of or hedging transactions
with respect to the common stock of the Company.

 

i.                    
The Buyer is Not a “Dealer”. The Buyer and the Company hereby acknowledge and agree that solely with respect
to the transactions contemplated by this agreement and services, if any, provided by the Buyer to the Company, the Buyer has not: (i)
acted as an underwriter; (ii) acted as a market maker or specialist; (iii) acted as “de facto” market maker; or (iv) conducted
any other professional market activities such as providing investment advice, extending credit and lending securities in connection; and
thus that the Buyer is not a “Dealer” as such term is defined in the 1934 Act.

 

5.                    Transfer Agent
Instructions. The Company shall issue irrevocable instructions to its transfer agent to issue certificates, registered in the
name of the Buyer or its nominee, for the Conversion Shares in such amounts as specified from time to time by the Buyer to the
Company upon conversion of the Series A Shares in accordance with the terms of the Certificate of Designation (the
“Irrevocable Transfer Agent Instructions”). In the event that the Company proposes to replace its transfer agent, the
Company shall provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in
a form as initially delivered pursuant to this Agreement (including but not limited to the provision to irrevocably reserve shares
of common stock in the Reserved Amount (as defined in the Certificate of Designation) signed by the successor transfer agent to
Company and the Company. Prior to registration of the Conversion Shares under the 1933 Act or the date on which the Conversion
Shares may be sold pursuant to an exemption from registration, all such certificates shall bear the restrictive legend specified in
Section 2(j) of this Agreement. The Company warrants that: (i) no instruction other than the Irrevocable Transfer Agent Instructions
referred to in this Section 5, will be given by the Company to its transfer agent and that the Securities shall otherwise be freely
transferable on the books and records of the Company as and to the extent provided in this Agreement and the Certificate of
Designation and subject to Rule 144; (ii) it will not direct its transfer agent not to transfer or delay, impair, and/or hinder its
transfer agent in transferring (or issuing)(electronically or in certificated form) any certificate for Conversion Shares to be
issued to the Buyer upon conversion of or otherwise pursuant to the Certificate of Designation or this Agreement as and when
required by thereby; and (iii) it will not fail to remove (or direct its transfer agent not to remove or impair, delay, and/or
hinder its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof)
on any certificate for any Conversion Shares issued to the Buyer upon conversion of the Series A Shares of or otherwise pursuant to
the Certificate of Designation or this Agreement as and when required thereby provided that the Conversion Shares are registered or
there is an exemption to registration. If the Buyer provides the Company and the Company’s transfer, at the cost of the Buyer,
with an opinion of counsel in form, substance and scope customary for opinions in comparable transactions, to the effect that a
public sale or transfer of such Securities may be made without registration under the 1933 Act, the Company shall permit the
transfer, and, in the case of the Conversion Shares, promptly instruct its transfer agent to issue one or more certificates, free
from restrictive legend, in such name and in such denominations as specified by the Buyer. The Company acknowledges that a breach by
it of its obligations hereunder will cause irreparable harm to the Buyer, by vitiating the intent and purpose of the transactions
contemplated hereby. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section
5 may be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section 5,
that the Buyer shall be entitled, in addition to all other available remedies, to an injunction restraining any breach and requiring
immediate transfer, without the necessity of showing economic loss and without any bond or other security being required; provided
that the Conversion Shares are registered or there is an exemption to registration.

 

 

 

 

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6.                   
Conditions to the Company’s Obligation to Sell. The obligation of the Company hereunder to issue and sell the Series
A Shares to the Buyer at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions
thereto, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole
discretion:

 

a.                   The Buyer shall have executed this Agreement and delivered the same to the Company.

 

b.                   The Buyer shall have delivered the Purchase Price in accordance with Section 1(b) above.

 

c.                   The representations and warranties of the Buyer shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date), and the
Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by
this Agreement to be performed, satisfied or complied with by the Buyer at or prior to the Closing Date.

 

d.                   No
litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority
over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.

 

7.                   
Conditions to The Buyer’s Obligation to Purchase. The obligation of the Buyer hereunder to purchase the Series A Shares
at the Closing is subject to the satisfaction, at or before the Closing Date of each of the following conditions, provided that these
conditions are for the Buyer’s sole benefit and may be waived by the Buyer at any time in its sole discretion:

 

a.                   The Company shall have executed this Agreement
and delivered the same to the Buyer.

 

b.                  
The Company shall have delivered to the Buyer the Series A Shares by way of book entry as confirmed by the Company’s transfer
agent in accordance with Section 1(b) above.

 

c.                  
The Irrevocable Transfer Agent Instructions, in form and substance satisfactory to the Buyer, shall have been delivered to and
acknowledged in writing by the Company’s Transfer Agent.

 

d.                  
The representations and warranties of the Company shall be true and correct in all material respects as of the date when made and
as of the Closing Date as though made at such time (except for representations and warranties that speak as of a specific date) and the
Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by
this Agreement to be performed, satisfied or complied with by the Company at or prior to the Closing Date. The Buyer shall have received
a certificate or certificates, executed by the chief executive officer of the Company, dated as of the Closing Date, to the foregoing
effect and as to such other matters as may be reasonably requested by the Buyer including, but not limited to certificates with respect
to the Board of Directors’ resolutions relating to the transactions contemplated hereby.

 

e.                   No litigation, statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated
or endorsed by or in any court or governmental authority of competent jurisdiction or any self-regulatory organization having authority
over the matters contemplated hereby which prohibits the consummation of any of the transactions contemplated by this Agreement.

 

f.                    No event shall have occurred which could reasonably be expected to have a Material Adverse Effect on the Company including, but
not limited, to a change in the 1934 Act reporting status of the Company or the failure of the Company to be timely in its 1934 Act reporting
obligations.

 

 

 

 

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g.                   The Company’s transfer agent shall be engaged to act as the transfer agent for the Series A Preferred Shares.

 

h.                   The Certificate of Designation shall be properly authorized and filed with the Secretary of State of the State of Nevada and declared
effective.

 

		8.	Governing Law; Miscellaneous.

 

a.                  
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Virginia without
regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated
by this Agreement shall be brought only in the state courts of Virginia or in the federal courts located in the State of Virginia. The
parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall
not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Company and Buyer waive trial
by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs. In the event
that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable
statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall
not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service
of process and consents to process being served in any suit, action or proceeding in connection with this Agreement, the Series A Shares,
the Certificate of Designation or any related document or agreement by mailing a copy thereof via registered or certified mail or overnight
delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such
service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit
in any way any right to serve process in any other manner permitted by law.

 

b.                  
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but
all of which shall constitute one and the same agreement and shall become effective when counterparts have been signed by each party and
delivered to the other party.

c.                  
Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the
interpretation of, this Agreement.

 

d.                  
Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute
or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified
to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under any law shall not affect
the validity or enforceability of any other provision hereof.

 

e.                   Entire
Agreement; Amendments. This Agreement and the instruments referenced herein contain the entire understanding of the parties with
respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor
the Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement
may be waived or amended other than by an instrument in writing signed by the parties hereto.

 

f.                   
Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall
be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified,
return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted
by hand delivery, telegram, email, or facsimile, addressed as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective
(a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address
or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first
(1st) business day following such delivery (if delivered other than on a business day during normal business hours where such
notice is to be received) or (b) on the second (2nd) business day following the date of mailing by express courier service,
fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such
communications shall be as set forth in the heading of this Agreement with a copy by fax only to (which copy shall not constitute notice)
to Naidich Wurman LLP, 111 Great Neck Road, Suite 214, Great Neck, NY 11021, Attn: Allison Naidich, facsimile: 516-466-3555, e-mail: allison@nwlaw.com.
Each party shall provide notice to the other party of any change in address.

 

 

 

 

    	 	8	 

     

    

 

g.                  
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors
and assigns. Neither the Company nor the Buyer shall assign this Agreement or any rights or obligations hereunder without the prior written
consent of the other.

 

h.                   Survival and Indemnification. The representations and warranties and the agreements and covenants set forth in this Agreement
shall survive the closing hereunder notwithstanding any due diligence investigation conducted by or on behalf of the either party. The
Company agrees to indemnify and hold harmless the Buyer and all their officers, directors, employees and agents for loss or damage arising
as a result of or related to any breach or alleged breach by the Company of any of its representations, warranties and covenants set forth
in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they are incurred.
The Buyer agrees to indemnify and hold harmless the Company and all their officers, directors, employees and agents for loss or damage
arising as a result of or related to any breach or alleged breach by the Buyer of any of its representations, warranties and covenants
set forth in this Agreement or any of its covenants and obligations under this Agreement, including advancement of expenses as they are
incurred.

 

i.                    Further
Assurances. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall
execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in
order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated
hereby.

 

j.                    
No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

k.                   Remedies. Each party acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the other
party by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, each party acknowledges that the remedy
at law for a breach of its obligations under this Agreement will be inadequate and agrees, in the event of a breach or threatened breach
by the other party of the provisions of this Agreement, that the non-breaching party shall be entitled, in addition to all other available
remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing
or curing any breach of this Agreement and to enforce specifically the terms and provisions hereof, without the necessity of showing economic
loss and without any bond or other security being required.

 

IN WITNESS WHEREOF, the undersigned
Buyer and the Company have caused this Agreement to be duly executed as of the date first above written.

 

EDGEMODE, INC. f/k/a FOURTH WAVE ENERGY, INC.

 

    

By:______________________________

Name: Charlie Faulkner

Title: Chief Executive Officer

 

 

	1800 DIAGONAL LENDING LLC	 
	
    By:______________________________

     Name: Curt Kramer

    Title: President

	
     

    AGGREGATE SUBSCRIPTION AMOUNT:

	Number of Series A Preferred Shares purchased	78,750
	Aggregate Purchase Price:	$78,750.00

 

 

 

 

    	 	9	 

     

    

 

See attached.

EXHIBIT A

Certificate of Designation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	10Document

EXHIBIT 10.1

Fifth Amendment to Loan Documents

            THIS FIFTH AMENDMENT TO LOAN DOCUMENTS (this “Amendment”) is made as of July 25, 2022, by and among PEGASYSTEMS INC. (the “Borrower”), the Guarantors (as such term is defined in the Credit Agreement defined in Exhibit A attached hereto and made a part hereof (the “Loan Agreement”)) party hereto (the “Guarantors” and each, individually, a “Guarantor”; the Borrower and the Guarantors are collectively referred to herein as the “Loan Parties” and each, individually, a “Loan Party”), the Lenders (as such term is defined in the Loan Agreement) party hereto (the “Lenders”) and PNC BANK, NATIONAL ASSOCIATION (the “Agent”), in its capacity as “Agent” (as such term is defined in the Loan Agreement) for the Lenders.

BACKGROUND

            A.        The Loan Parties have executed and delivered to the Agent and/or the Lenders one or more promissory notes, letter agreements, loan agreements, security agreements, pledge agreements, collateral assignments, and other agreements, instruments, certificates and documents, some or all of which are more fully described on Exhibit A attached hereto, which is made a part of this Amendment (collectively, as amended from time to time, the “Loan Documents”) which evidence or secure some or all of the Borrower’s Obligations. 

            B.         The Loan Parties, the Lenders and the Agent desire to amend the Loan Documents as provided for in this Amendment. 

            NOW, THEREFORE, in consideration of the mutual covenants herein contained and intending to be legally bound hereby, the parties hereto agree as follows:

            1.         Certain of the Loan Documents are amended as set forth in Exhibit A attached hereto and made a part hereof.  Any and all references to any Loan Document which is amended hereby in any other Loan Document shall be deemed to refer to such Loan Document as amended by this Amendment.  This Amendment is deemed incorporated into each of the Loan Documents being amended hereby.  Any initially capitalized terms used in this Amendment without definition shall have the meanings assigned to those terms in the Loan Agreement.  To the extent that any term or provision of this Amendment is or may be inconsistent with any term or provision in any Loan Document, the terms and provisions of this Amendment shall control.

            2.         The Borrower hereby certifies that (a) all of its representations and warranties in the Loan Documents, as amended by this Amendment, are, except as may otherwise be stated in this Amendment, (i) true and correct in all material respects (except for any representation or warranty which expressly relates to an earlier date, in which case such representation and warranty was true and correct as of such earlier date) as of the date of this Amendment, (ii) ratified and confirmed without condition as if made anew (except for any representation or warranty which expressly relates to an earlier date, in which case such representation and warranty shall be ratified and confirmed as of such earlier date), and (iii) incorporated into this Amendment by reference; (b) no Event of Default or event which, with the passage of time or the giving of notice or both, would constitute an Event of Default, exists under any Loan Document which will not be cured by the execution and effectiveness of this Amendment; (c) no consent, approval, order or authorization of, or registration or filing with, any third party is required in connection with the execution, delivery and carrying out of this Amendment or, if required, has been obtained; and (d) this Amendment has been duly authorized, executed and delivered so that it constitutes the legal, valid and binding obligation of the Borrower, enforceable in accordance with its terms.  The Borrower confirms that the Obligations remain outstanding without defense, set off, counterclaim, discount or charge of any kind as of the date of this Amendment.  

            3.         The Borrower hereby confirms that any collateral for the Obligations, including liens, security interests, mortgages, and pledges granted by the Borrower or third parties (if applicable), shall continue unimpaired and in full force and effect, and shall cover and secure all of the Borrower’s existing and future Obligations to the Lenders, as modified by this Amendment.

            4.         As a condition precedent to the effectiveness of this Amendment, the Borrower shall comply with the terms and conditions specified in Exhibit A attached hereto and made a part hereof.

EXHIBIT 10.1
(continued)

            5.         To induce the Agent and the Lenders to enter into this Amendment, each Loan Party reaffirms all of its indemnification obligations contained in the Loan Documents, including, without limitation, pursuant to Section 11.3.2 of the Loan Agreement.

            6.         This Amendment may be signed in any number of counterpart copies and by the parties to this Amendment on separate counterparts, but all such copies shall constitute one and the same instrument.   Delivery of an executed counterpart of a signature page to this Amendment by electronic or facsimile transmission shall be effective as delivery of a manually executed counterpart.  Any party so executing this Amendment by electronic or facsimile transmission shall promptly deliver a manually executed counterpart, provided that any failure to do so shall not affect the validity of the counterpart executed by electronic or facsimile transmission, as applicable.

            7.         Notwithstanding any other provision herein or in the other Loan Documents, each Loan Party agrees that this Amendment, the Note, the other Loan Documents, any other amendments thereto and any other information, notice, signature card, agreement or authorization related thereto (each, a “Communication”) may, at the Agent’s option, be in the form of an electronic record.  Any Communication may, at the Agent’s option, be signed or executed using electronic signatures.  For the avoidance of doubt, the authorization under this paragraph may include, without limitation, use or acceptance by the Agent of a manually signed paper Communication which has been converted into electronic form (such as scanned into PDF format) for transmission, delivery and/or retention. Each Loan Party, each Lender and the Agent acknowledge and agree that the methods for delivering Communications, including notices, under the Loan Documents include electronic transmittal to any electronic address provided by either party to the other party from time to time. 

            8.         This Amendment will be binding upon and inure to the benefit of each Loan Party, the Agent, and the Lenders and their respective heirs, executors, administrators, successors and assigns.

            9.         This Amendment has been delivered to and accepted by the Agent and the Lenders and will be deemed to be made in the State of New York.  This Amendment will be interpreted and the rights and liabilities of the parties hereto determined in accordance with the laws of the State of New York, excluding its conflict of laws rules, including without limitation the Electronic Signatures and Records Act (or equivalent) in such State (or, to the extent controlling, the laws of the United States of America, including without limitation the Electronic Signatures in Global and National Commerce Act).

            10.       Except as amended hereby, the terms and provisions of the Loan Documents remain unchanged, are and shall remain in full force and effect unless and until modified or amended in writing in accordance with their terms, and are hereby ratified, reaffirmed and confirmed. Except as expressly provided herein, this Amendment shall not constitute an amendment, waiver, consent or release with respect to any provision of any Loan Document, a waiver of any default or Event of Default under any Loan Document, or a waiver or release of any of the Agent’s or Lenders’ rights and remedies (all of which are hereby reserved).  Each Loan Party, the Agent and the Lenders mutually expressly ratify and confirm the waiver of jury trial or arbitration provisions contained in the Loan Documents, all of which are incorporated herein by reference.

[signatures appear on following page]
2

EXHIBIT 10.1
(continued)

            WITNESS the due execution of this Amendment as of the date first written above, with the intent to be legally bound hereby.

						
	WITNESS:

By: /s/ Jeffrey Lee
Name: Jeffrey Lee
Title: Manager, Treasury

	BORROWER:

PEGASYSTEMS INC.

By: Kenneth Stillwell
Name: Kenneth Stillwell
Title: Chief Operating Officer and Chief Financial Officer

	

By: /s/ Jeffrey Lee
Name: Jeffrey Lee
Title: Manager, Treasury
	GUARANTORS:

PEGASYSTEMS WORLDWIDE INC.

By: Efstathios Kouninis
Name: Efstathios Kouninis
Title    Director

	

By: /s/ Jeffrey Lee
Name: Jeffrey Lee
Title: Manager, Treasury

	ANTENNA SOFTWARE, LLC

By: PEGASYSTEMS INC., its sole member

By: Kenneth Stillwell
Name: Kenneth Stillwell
Title: Chief Operating Officer and Chief Financial Officer

	

By: /s/ Jeffrey Lee
Name: Jeffrey Lee
Title: Manager, Treasury

	PEGA GOVERNMENT LLC

By: Efstathios Kouninis
Name: Efstathios Kouninis
Title: Manager

3

EXHIBIT 10.1
(continued)

                                                                                    PNC BANK, NATIONAL ASSOCIATION,
                                                                                    Individually and as Agent

                                                                                    By: Terence J. O’Malley
                                                                                    Name:  Terence J. O’Malley
                                                                                    Title:   Senior Vice President

4

EXHIBIT 10.1
(continued)

EXHIBIT A 
TO FIFTH AMENDMENT TO LOAN DOCUMENTS
DATED AS OF JULY 25, 2022

A.        The “Loan Documents” that are the subject of this Amendment include the following (as any of the foregoing have previously been amended, modified or otherwise supplemented):

1.Credit Agreement dated as of November 5, 2019 made by and among Pegasystems Inc., (the “Borrower”), each of the Guarantors, and the Agent (the “Loan Agreement”). 

2.Amendment to Loan Documents dated as of February 18, 2020 made by and among the Borrower, each of the Guarantors, and the Agent (the “First Amendment”).

3.Second Amendment to Loan Documents dated as of July 22, 2020 made by and among the Borrower, each of the Guarantors, and the Agent (the “Second Amendment”).

4.Third Amendment to Loan Documents dated as of September 20, 2020 made by and among the Borrower, each of the Guarantors, and the Agent (the “Third Amendment”).

5.Fourth Amendment to Loan Documents dated as of March 31, 2022 made by and among the Borrower, each of the Guarantors, and the Agent (the “Fourth Amendment”).

6.Guarantor Joinder and Assumption Agreement made as of August 24, 2020, by Pega Government LLC in favor of Agent and Lenders (the "Guarantor Joinder").

7.Revolving Credit Note in the principal amount of $100,000,000.00 dated as of November 5, 2019 executed by the Borrower in favor of the Agent (the “Note”).

8.Security Agreement dated as of November 5, 2019, by and between Borrower and Agent (the “Borrower Security Agreement”). 

9.Security Agreement dated as of November 5, 2019, by and among Pegasystems Worldwide, Inc., Antenna Software, LLC and Agent (the “Guarantor Security Agreement”). 

10.Continuing Agreement of Guaranty and Suretyship dated as of November 5, 2019, by and among Pegasystems Worldwide, Inc., Antenna Software, LLC and Agent (the “Guaranty Agreement”).

11.Pledge Agreement dated as of November 5, 2019, by and between Borrower and Agent (the “Borrower Pledge Agreement”).

12.First Amendment to Pledge Agreement dated as of August 24, 2020, by and between Borrower and Agent (the “First Amendment to Pledge Agreement”)

13.Pledge Agreement (Bank Deposits) dated as of November 5, 2019, by and among Borrower and Agent (the “Deposit Account Pledge Agreement”).

14.Deposit Account Control Agreement dated as of December 23, 2019, by and among Borrower, Agent and Bank of America, N.A. (as amended and in effect from time to time, the “Deposit Account Control Agreement”).

15.Patent, Trademark and Copyright Security Agreement dated as of November 5, 2019, by and between Borrower and Agent (the “Borrower PTC Agreement”).

16.Patent, Trademark and Copyright Security Agreement dated as of November 5, 2019, by and between Antenna Software, LLC and Agent (the “Guarantor PTC Agreement”).
5

EXHIBIT 10.1
(continued)

17.All other documents, instruments, agreements, and certificates executed and delivered in connection with the Loan Documents listed in this Exhibit A.

B.         Amendments to Loan Documents.  The Loan Documents are hereby amended and modified as follows:

1.Amendments to Loan Agreement.  

1.01     Reference is hereby made to Section 1.1 of the Loan Agreement.  Said Section 1.1 is hereby modified to amend and restate the following definitions to read as follows:

“Material Adverse Change shall mean any set of circumstances or events which (i) has or could reasonably be expected to have any material adverse effect whatsoever upon the validity or enforceability of this Agreement or any other Loan Document, (ii) is or could reasonably be expected to be material and adverse to the business, properties, assets, financial condition or results of operation of the Loan Parties, taken as a whole, (iii) impairs materially or could reasonably be expected to impair materially the ability of the Loan Parties taken as a whole to duly and punctually pay or perform any of the Obligations, or (iv) impairs materially or could reasonably be expected to impair materially the ability of the Administrative Agent or any of the Lenders, to the extent permitted, to enforce their legal remedies pursuant to this Agreement or any other Loan Document; provided, however, the existence of the lawsuit styled Appian Corp. v. Pegasystems Inc. & Youyong Zou filed May 29, 2020 in the Circuit Court of Fairfax County, Virginia and appeals thereof (collectively, the “Appian Litigation”) will not, in and of itself, and prior to such constituting an Event of Default pursuant to Section 9.1.7 hereof, be considered a circumstance or event which (x) is or could reasonably be expected to be material and adverse to the business, properties, assets, financial condition or results of operation of the Loan Parties, taken as a whole, pursuant to clause (ii) of this definition or (y) impairs materially or could reasonably be expected to impair materially the ability of the Loan Parties taken as a whole to duly and punctually pay or perform any of the Obligations, pursuant to clause (iii) of this definition.”

“Material Subsidiary shall mean a Subsidiary of the Borrower that provides more than 5% of the total revenues of, or holds more than 5% of the total assets of, the Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP; provided that Pegasystems Worldwide India Private Limited shall not be deemed to be a Material Subsidiary so long as it provides less than 10% of the total revenues of, or holds less than 10% of the total assets of, the Borrower and its Subsidiaries on a consolidated basis in accordance with GAAP.”

“Potential Default shall mean any event or condition which with notice or passage of time, or both, would constitute an Event of Default; provided, however, the Appian Litigation will not, in and of itself, and prior to such constituting an Event of Default pursuant to Section 9.1.7 hereof, result in a Potential Default for purposes of Section 2.5 [Revolving Credit Loan Requests] and Section 7.2 [Each Revolving Credit Loan or Letter of Credit].”

1.02     Reference is hereby made to Section 2.9.1.1 of the Loan Agreement.  Said Section 2.9.1.1 is hereby amended and restated as follows:

6

EXHIBIT 10.1
(continued)

“2.9.1.1     Unless the Issuing Lender has received notice from any Lender, the Administrative Agent or any Loan Party, at least one day prior to the requested date of issuance, amendment or extension of the applicable Letter of Credit, that one or more applicable conditions in Section 7 [Conditions of Lending and Issuance of Letters of Credit] is not satisfied, then, subject to the terms and conditions hereof and in reliance on the agreements of the other Lenders set forth in this Section 2.9, the Issuing Lender or any of the Issuing Lender's Affiliates will issue the proposed Letter of Credit or agree to such amendment or extension, provided that each Letter of Credit shall (i) have a maximum maturity of twelve (12) months from the date of issuance, and (ii) in no event expire later than the Expiration Date and provided further that in no event shall (a) the Letter of Credit Obligations exceed, at any one time, $35,000,000 (the "Letter of Credit Sublimit") or (b) the Revolving Facility Usage exceed, at any one time, the Revolving Credit Commitments.  Each request by the Borrower or other Loan Party, as the case may be, for the issuance, amendment or extension of a Letter of Credit shall be deemed to be a representation by the Borrower or such other Loan Party that it shall be in compliance with the preceding sentence and with Section 7 [Conditions of Lending and Issuance of Letters of Credit] after giving effect to the requested issuance, amendment or extension of such Letter of Credit.  Promptly after its delivery of any Letter of Credit or any amendment to a Letter of Credit to the beneficiary thereof, the applicable Issuing Lender will also deliver to the Borrower and the Administrative Agent a true and complete copy of such Letter of Credit or amendment.”

                        1.03     Reference is hereby made to Section 2.9.2 of the Loan Agreement.  Said Section 2.9.2 is hereby amended and restated as follows:

“2.9.2     Letter of Credit Fees.  The Borrower shall pay to the Administrative Agent for the ratable account of the Lenders a fee (the "Letter of Credit Fee") equal to the Applicable Letter of Credit Fee Rate on the daily amount available to be drawn under each Letter of Credit.  All Letter of Credit Fees shall be computed on the basis of a year of 360 days and actual days elapsed and shall be payable quarterly in arrears on each Payment Date following issuance of each Letter of Credit.  The Borrower shall also pay to the Issuing Lender for the Issuing Lender's sole account the Issuing Lender's then in effect customary fees and administrative expenses payable with respect to the Letters of Credit as the Issuing Lender may generally charge or incur from time to time in connection with the issuance, maintenance, amendment (if any), assignment or transfer (if any), negotiation, and administration of Letters of Credit.”

            1.04     Reference is hereby made to Section 8.2.4(vi) of the Loan Agreement.  Said Section 8.2.4(vi) is hereby amended and restated as follows:

“(vi)     Restricted Investments in the Excluded Subsidiaries not exceeding $10,000,000 in the aggregate at any one time, provided, that, Restricted Investments in each of Pegasystems Limited (UK), Pegasystems Sp. Z.o.o. (Poland), Pegasystems France, S.A.R.L. (France), Pegasystems Mauritius (Mauritius) and Pegasystems Worldwide India Private Limited (India) are not subject to this dollar amount limitation provided such Restricted Investments are consistent with the Borrower’s customary business practices;”

            1.05     Reference is hereby made to Section 9.1.7 of the Loan Agreement.  Said Section 9.1.7 is hereby amended and restated as follows:

            “9.1.7     Final Judgements or Orders.  Any final judgments or orders for the payment of money in excess of $50,000,000 in the aggregate (excluding any amounts covered by insurance) shall be entered against any Loan Party by a court having jurisdiction in the premises, where such judgment is not discharged or stayed pending appeal within sixty (60) days after the date on which the right to appeal the same has expired or been extinguished; or”

C.         Conditions to Effectiveness of Amendment: The Agent’s willingness to agree to the amendments set forth in this Amendment is subject to the prior satisfaction of the following conditions:

1.Execution by all applicable parties and delivery to the Agent of this Amendment (including the attached Consent).

7

EXHIBIT 10.1
(continued)

2.Reimbursement by the Borrower to the Agent of the fees and expenses of the Agent's outside counsel in connection with this Amendment.

3.All representations and warranties contained in the Loan Documents are true and correct in all material respects on the date hereof (except for any representation or warranty which expressly relates to an earlier date, in which case such representation and warranty was true and correct as of such earlier date).

4.Immediately after giving effect to this Amendment, no default or Event of Default shall have occurred and be continuing under the Loan Agreement or any of the other Loan Documents.

CONSENT OF GUARANTOR

            Each of the undersigned guarantors (jointly and severally if more than one, the “Guarantors”) consent to the provisions of the foregoing Amendment, any and all documents executed in connection therewith, and all prior amendments (if any) and confirms and agrees that (a) the Guarantors’ obligations under the Guaranty shall be unimpaired by the Amendment; (b) as of the date hereof, the Guarantors have no defenses, set offs, counterclaims, discounts or charges of any kind against the Agent and/or the Lenders, their respective officers, directors, employees, agents or attorneys with respect to the Guaranty; (c) except as expressly modified by the foregoing Amendment, all of the terms, conditions and covenants in the Guaranty remain unaltered and in full force and effect and are hereby ratified and confirmed and apply to the Obligations, as modified by the Amendment; and (d) the Guarantors are bound by the terms and provisions of paragraph 5 of the Amendment.  The Guarantors certify that all representations and warranties made in the Guaranty are true and correct in all material respects (except for any representation or warranty which expressly relates to an earlier date, in which case such representation and warranty was true and correct as of such earlier date). 

            By signing below, the Guarantors agree that this Consent, the Guaranty, the other Loan Documents, any amendments thereto and any other information, notice, signature card, agreement or authorization related thereto (each, a “Communication”) may, at the Agent’s option, be in the form of an electronic record.  Any Communication may, at the Agent’s option, be signed or executed using electronic signatures.  For the avoidance of doubt, the authorization under this paragraph may include, without limitation, use or acceptance by the Agent of a manually signed paper Communication which has been converted into electronic form (such as scanned into PDF format) for transmission, delivery and/or retention.  The Guarantor acknowledges and agrees that the methods for delivering Communications, including notices, under the Guaranty and the other Loan Documents include electronic transmittal to any electronic address provided by any party to the other party from time to time.

            The Guarantors hereby confirm that any collateral for the Obligations, including liens, security interests, mortgages, and pledges granted by the Guarantors, shall continue unimpaired and in full force and effect, shall cover and secure all of the Guarantors’ existing and future Obligations to the Lenders, as modified by this Amendment.

            The Guarantor ratifies and confirms the indemnification (if any) and waiver of jury trial provisions contained in the Guaranty.

[signatures appear on following page]

           
8

EXHIBIT 10.1
(continued)

 WITNESS the due execution of this Consent as of the date of the Amendment, intending to be legally bound hereby.

						
	WITNESS:

By: /s/ Jeffrey Lee
Name: Jeffrey Lee
Title: Manager, Treasury
	GUARANTORS:

PEGASYSTEMS WORLDWIDE INC.

By: Efstathios Kouninis
Name: Efstathios Kouninis
Title    Director

	

By: /s/ Jeffrey Lee
Name: Jeffrey Lee
Title: Manager, Treasury

	ANTENNA SOFTWARE, LLC

By: PEGASYSTEMS INC., its sole member

By: Kenneth Stillwell
Name: Kenneth Stillwell
Title: Chief Operating Officer and Chief Financial Officer

	

By: /s/ Jeffrey Lee
Name: Jeffrey Lee
Title: Manager, Treasury

	PEGA GOVERNMENT LLC

By: Efstathios Kouninis
Name: Efstathios Kouninis
Title: Manager

		

9

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