Document:

ex_394448.htm

 

Exhibit 4.4

Warrant

 

NEITHER THIS SECURITY NOR THE SECURITIES FOR WHICH THIS SECURITY IS EXERCISABLE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

 

 

COMMON STOCK PURCHASE WARRANT

 

Warrant Shares: 120,588         Issuance Date: July 7, 2022

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, William Mackay Investments LLC, a Colorado Limited Liability Company, with its principal place of business at XXXXXXX, or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the date that is six months following the date hereof and on or prior to the close of business on the fifth (5th)year anniversary of the Issuance Date (the “Termination Date”) but not thereafter, to subscribe for and purchase from Mitesco Inc., a Delaware corporation (the “Company”), up to 120,588 shares of Common Stock (subject to adjustment hereunder, the “Warrant Shares”). The purchase price of one Warrant Share under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b). This Warrant issued pursuant to a Securities Purchase Agreement (the “Purchase Agreement”), dated as of the Issuance Date, entered into between the Company and the purchasers, including the Holder.

 

Section 1.         Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in the Purchase Agreement.

 

Section 2.         Exercise.

 

(a)    Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the six month anniversary of the Issuance Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed copy of the Notice of Exercise Form annexed hereto. Within two Trading Days following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or cashier’s check drawn on a United States bank, unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. Notwithstanding anything herein to the contrary (although the Holder may surrender the Warrant to, and receive a replacement Warrant from, the Company), the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder

 

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shall surrender this Warrant to the Company for cancellation within two Trading Days of the date the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise Form within one Trading Day of delivery of such notice. The Holder by acceptance of this Warrant or any transferee, acknowledges and agrees that, by reason of the provisions of this Section 2(a), following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof.

 

(b)    Exercise Price. The initial exercise price per share of the Common Stock under this Warrant shall be equal to $0.50 per share, subject to adjustment under Section 3 (the “Exercise Price”).

 

(c)    Cashless Exercise. Other than as provided for in Section 2(f), if at any time after the six month anniversary of the Issuance Date, there is no effective Registration Statement covering the resale of the Warrant Shares at prevailing market prices (not a fixed price) by the Holder (or the prospectus does not meet the requirements of Section 10 of the Securities Act), then this Warrant may also be exercised at the Holder’s election, in whole or in part and in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the number obtained by dividing [(A - B) times (C)] by (A), where:

 

(A) = the greater of (i) the arithmetic average of the VWAPs for the five consecutive Trading Days ending on the date immediately preceding the date on which the Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise or (ii) the VWAP for the Trading Day immediately prior to the date on which the Holder makes such “cashless exercise” election;

 

(B) = the Exercise Price of this Warrant, as adjusted hereunder, at the time of such exercise; and

 

(C) = the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise;

 

“VWAP” means, for any date, the price determined by the first of the following clauses that applies:

 

(a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)) (or a similar organization or agency succeeding to its functions of reporting prices), (b) if no volume weighted average price of the Common Stock is reported for the Trading Market, the most recent reported bid price per share of the Common Stock, or (c) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.

 

If Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the characteristics

 

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of the Warrants being exercised, and the holding period of the Warrants being exercised may be tacked on to the holding period of the Warrant Shares. The Company agrees not to take any position contrary to this Section 2(c).

 

Notwithstanding anything herein to the contrary, if on the Termination Date (unless the Holder notifies the Company otherwise) if there is no effective Registration Statement covering the resale of the Warrant Shares by the Holder, then this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 2(c).

 

	 	
			(d)

				
			Mechanics of Exercise.

			

 

(i)    Delivery of Certificates Upon Exercise. Certificates for the shares of Common Stock purchased hereunder shall be transmitted to the Holder by the Transfer Agent by crediting the account of the Holder’s prime broker with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder or (B) this Warrant is being exercised via cashless exercise and Rule 144 is available, or otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is two Trading Days after the latest of (A) the delivery to the Company of the Notice of Exercise and (B) payment of the aggregate Exercise Price as set forth above (unless by cashless exercise, if permitted) (such date, the “Warrant Share Delivery Date”). The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price (or by cashless exercise, if permitted). The Company understands that a delay in the delivery of the Warrant Shares after the Warrant Share Delivery Date could result in economic loss to the Holder. As compensation to the Holder for such loss, the Company agrees to pay (as liquidated damages and not as a penalty) to the Holder for late issuance of Warrant Shares upon exercise of this Warrant the proportionate amount of $10 per Trading Day (increasing to $20 per Trading Day after the fifth Trading Day) after the Warrant Share Delivery Date for each $1,000 of the value of the Warrant Shares for which this Warrant is exercised (based on the Exercise Price) which are not timely delivered. In no event shall liquidated damages for any one transaction exceed $1,000 for the first 10 Trading Days. Furthermore, in addition to any other remedies which may be available to the Holder, in the event that the Company fails for any reason to effect delivery of the Warrant Shares by the Warrant Share Delivery Date, the Holder may revoke all or part of the relevant Warrant exercise by delivery of a notice to such effect to the Company, whereupon the Company and the Holder shall each be restored to their respective positions immediately prior to the exercise of the relevant portion of this Warrant, except that the liquidated damages described above shall be payable through the date notice of revocation or rescission is given to the Company or the date the Warrant Shares are delivered to the Holder, whichever date is earlier.

 

(ii)    Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical to this Warrant. Unless the Warrant has been fully exercised, the Holder shall not be required to surrender this Warrant as a condition of exercise.

 

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(iii)    Rescission Rights. If the Company fails to deliver the Warrant Shares or cause the Transfer Agent to transmit to the Holder a certificate or the certificates representing the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right, at any time prior to issuance of such Warrant Shares, to rescind such exercise.

 

(iv)    Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise. In addition to any other rights available to the Holder, if the Company fails to deliver the Warrant Shares, or cause the Transfer Agent to transmit to the Holder the certificate or certificates representing the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall pay in cash to the Holder the amount as provided under Section 4(d) of the Purchase Agreement. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof.

 

(v)    No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

 

(vi)    Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate including any charges of any clearing firm, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder. The Company shall pay all Transfer Agent fees required for same-day processing of any Notice of Exercise. The Company shall (A) pay the reasonable legal fees of the Holder’s choice (provided such counsel is reasonably acceptable to the Company) (in an amount not to exceed $500 per opinion, and not more often than once per week) in connection with the exercise of the Warrants, (B) cause its attorneys to promptly provide any opinion or reliance opinion to the Transfer Agent, and (C) pay the Holder the sums required under Section 2(d)(iv).

 

(vii)    Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

 

(e)    Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and

 

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(ii)    exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within one Trading Day confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon not less than 61 days’ prior notice to the Company, may increase the Beneficial Ownership Limitation provisions of this Section 2(e) solely with respect to the Holder’s Warrant, provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall continue to apply. Any such increase will not be effective until the 61st day after such notice is delivered to the Company. The Holder may also decrease the Beneficial Ownership Limitation provisions of this Section 2(e) solely with respect to the Holder’s Warrant at any time, which decrease shall be effectively immediately upon delivery of notice to the Company. The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant.

 

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Section 3.         Certain Adjustments.

 

	 	
			(a)

				
			Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding:

			

(i)    pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant or pursuant to any of the other Transaction Documents), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or reclassification.

 

(b)    Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to all of the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). Notwithstanding the foregoing, no Purchase Rights will be made under this Section 3(b) in respect of an Exempt Issuance.

 

(c)    Pro Rata Distributions. If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common Stock (and not to the Holder) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other than the Common Stock (which shall be subject to Section 3(b)), then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall be the VWAP determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record date less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of the Common Stock as determined by the Board of Directors in good faith. In either case the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed

 

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or such subscription rights applicable to one share of Common Stock. Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above.

 

	 	
			(d)

				
			Fundamental Transaction.

			

 

(i)    If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions engages in any Fundamental Transaction, as defined in the Certificate of Designation, then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction (without regard to any limitation on the exercise of this Warrant), at the option of the Holder the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. The Company shall not effect a Fundamental Transaction unless it gives the Holder at least 4 Trading Days prior notice together with sufficient details so the Holder can make an informed decision as to whether it elects to accept the Alternative Consideration. If a public announcement of the Fundamental Transaction has not been made, the notice to the Holder may not be given until the Company files a Form 8-K or other report disclosing the Fundamental Transaction.

 

(ii)    If Section 3(d)(i) is not applicable, the Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(d)(iii) pursuant to written agreements in form and substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant prior to such Fundamental Transaction (without regard to any limitation on the exercise of this Warrant), and with an exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents referring to the “Company”

 

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shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein.

 

(e)    Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

 

	 	
			(f)

				
			Notice to Holder.

			

 

 

(i)    Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly email to the Holder a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts requiring such adjustment. The Holder may supply an email address to the Company and change such address.

 

(ii)    Notice to Allow Exercise by the Holder. If (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall deliver to the Holder at its last address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to email such notice or any defect therein or in the emailing thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of the Subsidiaries (as determined in good faith by the Company), the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

 

(g)    Mandatory Exercise. The Company shall have the option, subject to the Equity Conditions, to cause the Holder to exercise the Warrant (“Mandatory Exercise”) in whole or in part upon written notice (“Mandatory Exercise Notice”). For purposes of this Warrant, “Equity Conditions” means: (i) no breach under any of the Transaction Documents shall have occurred, (ii) the last closing sale

 

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price of the Common Stock has been equal to or greater than $2.00 per share (subject to adjustments for splits, dividends, recapitalizations and similar events) for consecutive 10 Trading Days immediately prior to the date on which the Mandatory Exercise Notice is given to the Holder (the “10 Day Consecutive Period”), (iii) on each Trading Day during the 10 Day Consecutive Period, the total daily trading dollar volume was at least $1,000,000, and (iv) during each day of the 10 Day Consecutive Period and through the date of the Mandatory Exercise shall occur, the Company must have an effective registration statement with a current prospectus in compliance with Sections 5 and 10 of the Securities Act on file with the SEC pursuant to which the Warrant Shares may be sold. The Mandatory Exercise Notice shall specify a date, which shall not be less than 30 days from the date such Mandatory Exercise Notice is received by the Holder on which such Mandatory Exercise shall occur. The Company’s right to require a Mandatory Exercise shall be subject to and may be limited by Section 2(e) above.

 

Section 4. Transfer of Warrant.

 

(a)    Transferability. Subject to compliance with any applicable securities laws, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney. Upon such surrender, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled. The Warrant, if properly assigned in accordance herewith, may be exercised by a new Holder for the purchase of Warrant Shares without having a new Warrant issued.

 

(b)    New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto.

 

(c)    Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.

 

Section 5.         Miscellaneous.

 

(a)    No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof other than as explicitly set forth in Section 3.

 

(b)    Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or

 

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mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it, and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate. In no event shall the Holder be required to deliver a bond or other security.

 

(c)    Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Trading Day, then, such action may be taken or such right may be exercised on the next succeeding Trading Day.

 

(d)    Authorized Shares. The Company covenants that during the period this Warrant is outstanding, it will reserve from its authorized and unissued Common Stock, free of preemptive rights 200% of the number of Warrant Shares issuable upon exercise of this Warrant. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and non-assessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof.

 

In addition to any other remedies provided by this Warrant, if the Company at any time fails to meet this reservation of Common Stock requirement within 45 days after written notice from the Holder, it shall pay the Holder as partial liquidated damages and not as a penalty a sum equal to $500 per day for each

$100,000 of Subscription Amount (or the original purchaser’s Subscription Amount if the Holder is a transferee of the Warrants. The Company shall not enter into any agreement or file any amendment to its Articles of Incorporation (including the filing of a Certificate of Designation) which conflicts with this Section 5(d) while the Series D Shares and Warrants remain outstanding.

 

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its Certificate of Incorporation or through any reorganization, 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 of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use reasonable best efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

 

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

 

10

 

 

(e)    Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the provisions of the Purchase Agreement.

 

(f)    Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered or if not exercised on a cashless basis when Rule 144 (or any successor law or rule) is available, may have restrictions upon resale imposed by state and federal securities laws.

 

(g)    Non-waiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of the Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting any other provision of this Warrant, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

 

(h)    Notices. Any notice, request or other document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice provisions of the Purchase Agreement.

 

(i)    Limitation of Liability. No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

(j)    Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate or that there is no irreparable harm and not to require the posting of a bond or other security.

 

(k)    Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder of Warrant Shares.

 

(l)    Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and Holder.

 

(m)    Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

11

 

 

(n)    Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

 

[Signature Page Follows]

 

 

 

12

 

 

IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

 

 

MITESCO, INC.

 

 

By:    Name: Lawrence Diamond

 

Title: Chief Executive Officer

 

 

 

 

 

 

 

 

 

SIGNATURE PAGE TO WARRANT

 

13Exhibit 10.1

    

      

    EXECUTION COPY

      

     

      

    CONSENT, WAIVER AND SECOND AMENDMENT TO

    AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

    

    

    This CONSENT, WAIVER AND SECOND AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this “Second Amendment”) is made as of this 13th day of July, 2022, by and among:

    

    

    SANTANDER BANK, N.A., a national bank having a place of business at 28 State Street, Boston, Massachusetts 02109 (the “Lender”);

    

    

    JANEL GROUP, INC., a New York corporation (“Janel”), EXPEDITED LOGISTICS AND FREIGHT SERVICES, LLC, a Texas limited liability company (“ELFS”) and ELFS BROKERAGE LLC, a Texas limited liability company (“ELFS Brokerage”, and together with Janel
      and ELFS, individually and collectively, and jointly and severally referred to herein as “Borrower”).

    

    

    JANEL CORPORATION, a Nevada corporation (“Parent”) and EXPEDITED LOGISTICS AND FREIGHT SERVICES, LLC, an Oklahoma limited liability company (“ELFS OK, and together with Parent, each, a “Loan Party Obligor” and collectively, the “Loan Party Obligors”)

    

    

    in consideration of the mutual covenants herein contained and benefits to be derived herefrom.

    

    

    W I T N E S S E T H:

    

    

    WHEREAS, the Borrower and the Loan Party Obligors and the Lender entered into that certain Amended and Restated Loan and
      Security Agreement dated as of September 21, 2021 (together with any further modifications, amendments, and restatements thereof, the “Agreement”);

    

    

    WHEREAS, the Borrower and the Loan Party Obligors have requested that the Lender modify and amend certain terms and
      conditions of the Agreement; and

    

    

    WHEREAS, the Lender has agreed to modify and amend certain terms and conditions of the Agreement, all as provided for
      herein.

    

    

    NOW, THEREFORE, it is hereby agreed among the parties hereto as follows:

    

    

    	1.	
            Capitalized Terms.  All capitalized terms used herein and not
              otherwise defined shall have the same meaning herein as in the Agreement.

          

    

    

    	2.	
            Amendments to Agreement.

          

    

    

    	

          	a.	
            Schedule A of the Agreement (Description of Certain Terms) is hereby deleted in its entirety and replaced with Schedule A attached hereto.

          

    

    

    	

          	b.	
            Schedule B of the Agreement (Definitions) is hereby amended as follows:

          

    
      
        

    

    
    	

          	i.	
            By inserting the following new definitions in their correct alphabetical order:

          

    

    

    	

          	A)	
            “Bridge Loan” means that
              certain Loan evidenced by the Bridge Loan Note.

          

    

    

    	

          	B)	
            “Bridge Loan Funding Date”
              means the date the Bridge Loan is funded by the Lender following satisfaction of all conditions set forth in Section 1.6 applicable to the funding of the Bridge Loan (including, without limitation, Section 1.6(d)).

          

    

    

    	

          	C)	
            “Bridge Loan Maturity Date”
              means the earlier to occur of (i) twenty (20) Business Days following the Bridge Loan Funding Date, as such date may be accelerated in accordance with the terms of this Agreement, and (ii) the date of funding of the Rubicon Dividend.

          

    

    

    	

          	D)	
            “Bridge Loan Note” means that
              certain Term Loan Note dated as of the Bridge Loan Funding Date in the original principal amount equal to the lesser of (i) $12,000,000  and (ii) the Rubicon Dividend, made payable by Parent in favor of the Lender, which Term Loan
              Note shall be substantially in the form of Exhibit A to the Second Amendment.

          

    

    

    	

          	E)	
            “Limited Conditionality Provisions”
              has the meaning given that term in the Commitment Letter dated July 1, 2022 by the Lender in favor of the Loan Party Obligors with respect to the Second Amendment.

          

    

    

    	

          	F)	
            “Rubicon” means Rubicon Technology, Inc., a Delaware corporation.

          

    

    

    	

          	G)	
            “Rubicon Acquisition” means
              the acquisition by Parent of up to forty-five percent (45%) of the outstanding Rubicon Shares in accordance with the provisions of this Agreement and the Rubicon Acquisition Documentation.

          

    

    

    	

          	H)	
            “Rubicon Acquisition Documentation”
              means (i) the Rubicon SPA, and (ii) the Rubicon Tender Offer Documentation, in each case, together with any other documents executed and delivered in connection therewith.

          

    

    

    	

          	I)	
            “Rubicon Dividend” means the
              dividend to be paid by Rubicon to Parent in an amount not less than $11.00 per share, the proceeds of which shall be used to repay the Bridge Loan in full.

          

    

    

    	

          	J)	
            “Rubicon Shares” has the same
              meaning as the term “Shares” as defined in the Rubicon Acquisition Documentation.

          

    
      -2-

      
        

    

    	

          	K)	
            “Rubicon SPA” means that
              certain Stock Purchase and Sale Agreement dated as of July 1, 2022 by and among Parent, as “Purchaser”, and Rubicon, as “Company”.

          

    

    

    	

          	L)	
            “Rubicon SPA Representations”
              mean the representations and warranties made by or on behalf of Rubicon in the Rubicon SPA, as are material to the interests of the Lender, but only to the extent that Parent has the right to terminate its obligations (or to refuse to
              consummate the Rubicon Tender Offer) under the Rubicon SPA as a result of a breach of any of such representations and warranties.

          

    

    

    	

          	M)	
            “Rubicon Tender Offer” means
              the tender offer made by Parent pursuant to the Rubicon Tender Offer Documentation.

          

    

    

    	

          	N)	
            “Rubicon Tender Offer Documentation”
              means (i) that certain Tender and Voting Agreement dated as of July 1, 2022 with each of Bandera Master Fund, L.P., Aldebaran Capital, LLC, Sententia Capital Management LLC and Poplar Point Capital Management, LLC, who are principal
              stockholders of Rubicon (the “Tender Agreement”) , and (ii) that certain tender offer statement filed by Parent with
              the Securities and Exchange Commission and in each case, together with any other documents executed and delivered in connection therewith.

          

    

    

    	

          	O)	
            “Second Amendment” means that
              certain Consent, Waiver, and Second Amendment to Amended and Restated Loan and Security Agreement dated as of the Second Amendment Effective Date by and among the Lender, the Borrower and the Loan Party Obligors.

          

    

    

    	

          	P)	
            “Second Amendment Dividend”
              means the dividend paid by Janel to Parent in the amount of $2,500,000 on or about the Bridge Loan Funding Date, the proceeds of which shall be used to fund a portion of the Rubicon Acquisition costs.

          

    

    

    	

          	Q)	
            “Second Amendment Effective Date”
              means July 13, 2022.

          

    

    

    	

          	R)	
            “Second Amendment Specified
                Representations” means the representations and warranties made by the Loan Party Obligors as of the Bridge Loan Funding Date pursuant to the following provisions of this Agreement: Section 5.1 (Existence and Authority); Section
              5.6(g) (margin stock); Section 5.9(b) (solvency); Section 5.24 (Patriot Act); Section 5.25 (OFAC); and Section 5.26 (Government Regulation).

          

    

    

    	

          	ii.	
            The following definitions are hereby amended as follows:

          

    

    

    	

          	A)	
            The definition of “Obligations”
              is hereby amended by inserting the following provision at the end thereof:

          

    
      -3-

      
        

    

    For avoidance of doubt, the Bridge Loan is an Obligation.

    

    

    	

          	c.	
            Section 1.1 of the Agreement (Amount of Loans /
                  Letters of Credit) is hereby amended by adding the following paragraph to the end thereof:

          

    

    

    “Bridge

        Loan.  Subject to the terms and conditions contained in this Agreement (including, without limitation, satisfaction of the applicable conditions set forth in Section 1.6), on or before September 15, 2022, the Lender agrees to make the Bridge
      Loan in a single draw upon at least three (3) Business Days’ prior written notice from the Company, which Bridge Loan, once made, shall constitute a Loan hereunder.  Such written notice shall specify (i) the requested date of funding (which shall be
      a Business Day), (ii) the amount of the Bridge Loan requested, (iii) the proposed amount of the Rubicon Dividend, and (iv) instructions as to the Deposit Account of Parent maintained with Lender into which the proceeds of such Bridge Loan shall be
      funded.”

    

    

    	

          	d.	
            Section 1.6 of the Agreement (Conditions of Making the Loans and Issuing Letters of Credit) is
                hereby amended by adding the following clause (d) to the end thereof:

          

    

    

    (d)          Bridge Loan.  With respect to the Bridge Loan, in addition to the conditions specified in clause (b) above, as applicable:

    

    

    	

          	(i)	
            Borrower shall have provided to Lender complete, correct and duly executed copies of the Rubicon Acquisition Documentation, as amended and in effect on
              the Bridge Loan Funding Date;

          

    

    

    	

          	(ii)	
            the Rubicon Tender Offer shall be consummated prior to or substantially contemporaneously with the funding of the Bridge Loan in all material respects
              in accordance with the Rubicon Acquisition Documentation as in effect on July 1, 2022 (in each case without any waiver, amendment, modification or supplement thereof by Parent or any of its affiliates or any consent or election thereunder by
              Borrower or any of its affiliates (any one of the foregoing, a “Modification”) that, in any such case, is material and
              adverse to the Lender without the prior written consent of the Lender (not to be unreasonably withheld, conditioned or delayed) (it being understood and agreed that any Modification that results in a change to the definition of the term
              “Company Material Adverse Effect” or a change to, or waiver of, Section 2.6(a) or Section 5.10 of the Rubicon SPA (as in effect on July 1, 2022), in each case shall be deemed to be materially adverse to Lender);

          

    
      -4-

      
        

    

    	

          	(iii)	
            the Rubicon Dividend shall have been duly authorized by Rubicon and, upon the Effective Time (as defined in the Rubicon SPA), all conditions to the
              declaration and payment of the Rubicon Dividend shall have been satisfied;

          

    

    

    	

          	(iv)	
            the Rubicon SPA Representations shall be true and correct to the extent required by the Limited Conditionality Provisions, and the Second Amendment
              Specified Representations shall be true and correct in all material respects (or in all respects, if separately qualified by materiality); and

          

    

    

    	

          	(v)	
            Lender shall have received, in form and substance satisfactory to Lender and duly executed by Parent, the Bridge Loan Note.

          

    

    

    	

          	e.	
            Section 1.7 of the Agreement (Repayments)
              is hereby amended by adding the following clause (c) to the end thereof:

          

    

    

    (c)          All outstanding monetary Obligations with respect to the Bridge Loan (including all accrued and unpaid interest and fees, if any) shall be payable in full on the Bridge Loan Maturity Date.  It is the intention of the Lender and the Loan
        Party Obligors that the Bridge Loan shall be repaid with the proceeds of the Rubicon Dividend. The Loan Party Obligors shall (i) promptly advise the Lender when the Rubicon Dividend has been funded, and (ii) cause the proceeds thereof (in the
        amount required by this subclause (c)) to be transferred by Rubicon directly to the Lender to applied in payment in full of the Bridge Loan.

    

    

    	

          	f.	
            Section 2.1 of the Agreement (Interest) is
              hereby amended by adding the following paragraph to the end thereof:

          

    

    

    Notwithstanding the foregoing, interest on the outstanding principal balance of the Bridge Loan shall accrue as
      provided for in the Bridge Loan Note.

    

    

    	

          	g.	
            Section 2.3 of the Agreement (Payment of Interest)
              is hereby amended by adding the following sentence to the end thereof:

          

    

    

    Notwithstanding the foregoing, interest with respect to the Bridge Loan shall be due and payable in accordance with the
      Bridge Loan Note.

    

    

    	

          	h.	
            Section 5.13 of the Agreement (Use of Proceeds)
              is hereby amended by inserting the following provision at the end thereof:

          

    

    

    Notwithstanding the foregoing, the proceeds of (i) the Bridge Loan, and (ii) the Second Amendment Dividend, shall be
      used to fund a portion of the purchase price and costs incurred in connection with the Rubicon Acquisition.

    
      -5-

      
        

    

    	3.	
            Waivers and Consents.  The Loan Party Obligors have requested
              that the Lender provide the following waivers (the “Waivers”) and consents (the “Consents”) related to the Rubicon Acquisition, and the Lender has agreed to provide such Waivers and Consents, but only on the terms and conditions
              set forth herein:

          

    

    

    	

          	a.	
            Rubicon Acquisition.  The Lender hereby consents to Parent
              consummating the Rubicon Acquisition and hereby waives any Event of Default that would occur as a result of the consummation thereof.

          

    

    

    	

          	b.	
            Second Amendment Dividend. The Lender hereby consents to the
              Second Amendment Dividend and hereby waives any Event of Default that would occur as a result of the making thereof.

          

    

    

    	

          	c.	
            One Time Waiver and Consent. The foregoing Waivers and
              Consents are a one-time Waivers and Consents and relate solely to the Rubicon Acquisition and the Second Amendment Dividend, respectively, and shall not be deemed to constitute an agreement by the Lender to consent to or waive any other
              provision of the Loan Agreement (i) in the future, or (ii) which do not relate to either of the Rubicon Acquisition or Second Amendment Dividend.

          

    

    

    	

          	d.	
            Limitation on Waivers and Consents.  Notwithstanding the
              foregoing, if the Rubicon Acquisition is not consummated in accordance with the Rubicon Acquisition Documentation as in effect on July 1, 2022 (in each case without any Modification that is material and adverse to the Lender without the prior
              written consent of the Lender (not to be unreasonably withheld, conditioned or delayed)) on or before September 15, 2022, each of the Waivers and Consents shall automatically be rescinded as of such date and of no force or effect.

          

    

    

    	4.	
            Representations Regarding the Rubicon Acquisition. The Loan
              Party Obligors hereby warrant and represent to the Lender, as of the Second Amendment Effective Date, as follows:

          

    

    

    	

          	a.	
            The Loan Party Obligors have delivered to the Lender complete, correct and duly executed copies of the Rubicon SPA and the Tender Agreement, in each
              case including all schedules and exhibits thereto.

          

    

    

    	

          	b.	
            To the best knowledge of the Loan Party Obligors, the Rubicon SPA Representations are true and correct in all material respects (or in all respects, if
              separately qualified by materiality).

          

    

    

    	5.	
            Ratification of Loan Documents/Waiver.  Except as provided
              for herein, all terms and conditions of the Agreement or the other Loan Documents remain in full force and effect.  Each Loan Party Obligor each hereby ratifies, confirms, and reaffirms all representations, warranties, and covenants contained
              therein (including, without limitation, (i) with respect to the Disclosure Schedule, and (ii) representations and warranties set forth in Section 5.11 of the Agreement, each of which the Loan Party Obligors represent and warrant is true and
              correct as of the date hereof) and acknowledges and agrees that the Obligations, as amended hereby, including, for the avoidance of doubt, the Bridge Loan, are and continue to be secured by the Collateral.  Each Loan Party Obligor
              acknowledges and agrees that each such Loan Party Obligor does not have any offsets, defenses, or counterclaims against the Lender arising out of the Agreement or the other Loan Documents, and to the extent that any such offsets, defenses, or
              counterclaims arising out of the Agreement or the other Loan Documents may exist, each such Loan Party Obligor hereby WAIVES and RELEASES the Lender therefrom.

          

    
      -6-

      
        

    

    	6.	
            Amendment Fee.  In consideration of the Lender’s agreement to
              enter into this Second Amendment, the Loan Party Obligors hereby acknowledge that the Lender has earned an amendment fee in the amount of $60,000 (the “Amendment Fee”) in accordance with the commitment letter dated as of July 1, 2022 by and among the Lender and the Loan Party Obligors (the “Commitment Letter”).  The Amendment Fee has been fully earned as of the date of the Commitment Letter and shall not be subject to refund or rebate under any circumstance.

          

    

    

    	7.	
            Conditions to Effectiveness.  This Second Amendment shall not
              be effective until each of the following conditions precedent have been fulfilled to the satisfaction of the Lender:

          

    

    

    	

          	a.	
            This Second Amendment and the Fifth Amended and Restated Revolving Credit Note shall have been duly executed and delivered by the respective parties
              hereto and, shall be in full force and effect and shall be in form and substance satisfactory to the Lender.

          

    

    

    	

          	b.	
            The Lender shall have received, in form and substance satisfactory to the Lender and duly executed by the parties thereto, a Fourth Amendment and
              Ratification of Debt Subordination Agreement with First Merchants Bank whereby the amount of Senior Debt (as defined therein) is increased from $31,500,000 to $47,000,000; provided however, that such cap shall be reduced by the amount of the Bridge Loan upon repayment in full thereof.

          

    

    

    	

          	c.	
            The Borrower shall have paid to the Lender the Amendment Fee and all other fees and expenses then due and owing pursuant to the Agreement and this
              Second Amendment.

          

    

    

    	

          	d.	
            The Lender shall have received customary opinions; corporate documents and officers’ certifications; organizational documents; customary evidence of
              authorization to enter into this Second Amendment; and good standing certificates in jurisdictions of formation/organization (to the extent such a certificate exists in the applicable jurisdiction) of the Loan Party Obligors.

          

    

    

    	

          	e.	
            The Lender shall have received (a) audited consolidated balance sheets and related statements of income, comprehensive income, stockholder’s equity and
              cash flows of each of the Loan Party Obligors and their consolidated subsidiaries and Rubicon and its consolidated subsidiaries for the fiscal years ended December 31, 2019, December 31, 2020 and December 31, 2021 (and the Lender hereby
              acknowledges receipt of such audited financial statements) and (b) unaudited consolidated balance sheets and related statements of income, comprehensive income and cash flows of each of the Loan Party Obligors and their consolidated
              subsidiaries and the Target and its consolidated subsidiaries for each fiscal quarter (other than any fourth fiscal quarter) ended after December 31, 2021 and at least 40 days prior to the Second Amendment Effective Date (and the Lender
              hereby acknowledges receipt of such unaudited financial statements as of and for the fiscal quarters ended March 31 and, June 30, 2022).

          

    
      -7-

      
        

    

    	8.	
            Conditions Subsequent to Effectiveness.  As an inducement to
              Lender to (i) provide the increase in the Maximum Revolving Facility Amount contemplated hereby, (ii) fund the Bridge Loan on the Bridge Loan Funding Date, and (iii) otherwise agree to the effectiveness of this Second Amendment, the Loan
              Party Obligors agree that, in addition to all other terms, conditions and provisions set forth in this Second Amendment and the other Loan Documents, the Loan Party Obligors shall satisfy each of the conditions subsequent set forth below on
              or before the date applicable thereto; it being understood that the failure by the Loan Party Obligors to perform or cause to be performed any such condition subsequent on or before the date applicable thereto shall constitute an immediate
              Event of Default under the Loan Agreement.

          

    

    

    	

          	a.	
            Within five (5) Business Days of the Bridge Loan Funding Date, the Offer Closing (as defined in the Rubicon SPA) shall have occurred in accordance with
              the Rubicon SPA (in each case without Modification that, in any such case, is material and adverse to the Lender without the prior written consent of the Lender (not to be unreasonably withheld, conditioned or delayed)).

          

    

    

    	

          	b.	
            Within twenty (20) Business Days of the Bridge Loan Funding Date, Parent shall have received proceeds of the Rubicon Dividend in an amount not less than
              the outstanding principal amount of the Bridge Loan.

          

    

    

    	9.	
            Miscellaneous.

          

    

    

    	

          	a.	
            This Second Amendment may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered
              shall be an original, and all of which together shall constitute one instrument.

          

    

    

    	

          	b.	
            The provisions of Section 10.15 (Governing Law)
              and 10.16 (Consent to Jurisdiction; Waiver of Jury Trial) are specifically incorporated herein by reference.

          

    

    

    	

          	c.	
            This Second Amendment expresses the entire understanding of the parties with respect to the transactions contemplated hereby.  No prior negotiations or
              discussions shall limit, modify, or otherwise affect the provisions hereof.

          

    

    

    	

          	d.	
            Any determination that any provision of this Second Amendment or any application hereof is invalid, illegal or unenforceable in any respect and in any
              instance shall not affect the validity, legality, or enforceability of such provision in any other instance, or the validity, legality or enforceability of any other provisions of this Second Amendment.

          

    
      -8-

      
        

    

    	

          	e.	
            The Borrower shall pay on demand all costs and expenses of the Lender, including, without limitation, reasonable attorneys’ fees in connection with the
              preparation, negotiation, execution and delivery of this Second Amendment.

          

    

    

    	

          	f.	
            The Loan Party Obligors each warrants and represents that such Person has consulted with independent legal counsel of such Person’s selection in
              connection with this Second Amendment and is not relying on any representations or warranties of the Lender or its counsel in entering into this Second Amendment.

          

    

    

    [remainder of page left intentionally blank]

    
      -9-

      
        

    

    IN WITNESS WHEREOF, the parties have hereunto caused this Second Amendment to be executed and their seals to be hereto
      affixed as of the date first above written.

     

    

    
      	 	
              LENDER

            
	 	 
	 	
              SANTANDER BANK, N.A.

            
	 	 
	 	
              By:          

              

            	/s/ Jennifer Baydian 

            
	 	
              Name: 

              

            	Jennifer Baydian  

            
	 	
              Its: 

              

            	Senior Vice President 

            

       

      

      
        [Signature Page to Second Amendment to Amended and Restated Loan and Security Agreement]

      

      
        
          

      

      	 	
              BORROWERS

            
	 	 	

            
	 	
              JANEL GROUP, INC., a New York
                corporation, as   Borrower

            
	 	 	 
	 	
              By:

            	
              /s/ William J. Lally

              

            
	 	
              Name:

            	
              William J. Lally

            
	 	
              Its:

            	
              President

            
	 	 	 
	 	 	 
	 	
              EXPEDITED LOGISTICS AND FREIGHT
                  SERVICES LLC, a Texas limited liability company, as Borrower

            
	 	 	 
	 	
              By:

            	
              /s/ William J. Lally

              

            
	 	
              Name:

            	
              William J. Lally

            
	 	
              Its:

            	
              Vice President

            
	 	 	 
	 	
              ELFS BROKERAGE LLC, a Texas
                limited liability company, as Borrower

            
	 	 	 
	 	
              By:  Janel Group, Inc., its Manager

            
	 	 	 
	 	

            	
              By:

            	/s/ William J. Lally 

            
	 	
              

              

            	
              Name:

            	
              William J. Lally

            
	 	 	
              Its:

            	
              President

            

       

      

      
        [Signature Page to Second Amendment to Amended and Restated Loan and Security Agreement]

      

      
        
          

      

      	 	
              LOAN PARTY OBLIGORS

            
	 	 	 
	 	
              JANEL CORPORATION, a
                Nevada corporation, as a Loan Party Obligor and Term Loan Borrower

            
	 	 	 
	 	
              By:

            	/s/ Dominique C. Shulte

            
	 	
              Name:

            	
              Dominique C. Schulte

            
	 	
              Its:

            	
              President

            
	 	 	 
	 	
              EXPEDITED LOGISTICS AND FREIGHT
                  SERVICES LLC, an Oklahoma limited liability company, as a Loan Party Obligor

            
	 	 	 
	 	
              By:

            	
              Expedited Logistics and Freight Services LLC, a Texas limited liability company, its sole member

            
	 	 	 
	 	 	
              By:

            	/s/ William J. Lally

            
	 	

            	
              Name:

            	
              William J. Lally

            
	 	 	
              Its:

            	
              Vice President

            
	 	

            	
              

              

            

       

      

      
        
          [Signature Page to Second Amendment to Amended and Restated Loan and Security Agreement]

        

      

    

    
      
        

    

    Schedule A

    

    

    Description of Certain Terms

    

    

    	
              1.          Loan Limits for Revolving Loans and
                Letters of Credit:

          	 
	
            (a)          Maximum Revolving
                Facility Amount:

          	
              $35,000,000

          
	
            (b)          Accounts Advance
                Rate:

          	
              85%

          
	
            (c)          Foreign Accounts
                Sublimit:

          	
              $4,500,000

          
	
            (d)          Letter of Credit
                Limit:

          	
              $3,000,000

          
	
              2.          Interest Rates:

          	 
	
            (a)          Base Rate Loans:

          	
              Base Rate (for avoidance of doubt, the applicable margin 

              is found in the definition of “Base Rate”).

          
	
            (b)          SOFR Rate Loans:

          	
              SOFR Rate plus SOFR
              Adjustment plus SOFR Rate Margin

          
	
              3.          Maximum Days re Eligible Accounts:

          	 
	
            (a)          Maximum days:

          	
              More than ninety (90) days from invoice date and sixty (60) days from due date

          
	 	 
	
              4.          Maturity Date:

          	
              September 21, 2026

          

    

    

    
      
        

    

    Exhibit A

    

    

    Form of Bridge Loan Note

    

    

    [see attached]

    

    

    3187131.11

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