Document:

IDRA_Ex10_1

			

					

						 

					

					

						Exhibit 10.1

				
	

					

						

					

					

						 

				

		

			 

		

		
			August 20, 2018
		

		
			 
		

		
			Bryant D. Lim 
		

		
			124 Avon Road 
		

		
			Haverford, PA 19041
		

		
			Dear Bryant, 
		

		
			 
		

		
			On behalf of Idera Pharmaceuticals, Inc., (“Company”), we are pleased to offer you the position of SVP, General Counsel and Secretary, reporting directly to Vin Milano, CEO. Your start date will be determined upon your acceptance of this offer. A summary of the terms of your employment follows. 
		

		
			 
		

		
			Exempt Base Salary 
		

		
			Your base salary will be based on a semi-monthly pay schedule at the rate of $13,750.00. This annualizes to a full-time equivalent of $330,000.00 and will be subject to customary tax withholdings and other payroll deductions. The Company utilizes a semi-monthly pay period, which ends on the 15th and the last day of the month. This position is considered an exempt position for purposes of federal wage-hour law, which means that you will not be eligible for overtime time pay for hours actually worked in excess of 40 in a given work week. 
		

		
			 
		

		
			Annual Incentive Plan 
		

		
			Subject to the terms of the Company’s Annual Incentive Plan (AIP) then in effect, you are eligible to earn a target incentive award of 40% of your annual base salary. Awards are discretionary and the determination of this discretionary award is subject to evaluation of performance at the corporate and individual levels, and other performance criteria as they apply to your position. AIP will be pro-rated in your first year of hire, based on your start date. 
		

		
			 
		

		
			Benefits 
		

		
			You will be eligible to participate in Idera’s benefit plans in accordance with the terms and conditions of each plan. Benefits currently include, but are not limited to, medical, dental, vision, life and disability insurance, flexible spending accounts, and a 401(k) savings plan. Full details of these programs, as well as vacation and holidays, will be provided to you under separate cover. 
		

		
			 
		

		
			Equity Grant 
		

		
			Upon joining the Company, you will be granted 130,000 options of Idera Common Stock at an exercise price which is equal to the fair market value on the date of hire. This grant is governed by Idera’s Stock Incentive Plan and is granted at the discretion of the Compensation Committee of the Board of Directors. 
		

		
			 
		

		
			Signing Bonus 
		

		
			As further recognition of your acceptance of this employment offer, Idera will grant you a one-time signing bonus of $40,000.00. The bonus will be paid to you as a lump sum via payroll in the first pay period following your one (1) month anniversary. This signing bonus is subject to customary tax withholdings and all regular payroll taxes will be withheld. If you leave Idera, either due to resignation or termination for cause, within twelve (12) months of your start date, you agree to reimburse Idera for the total signing bonus paid to you. By signing this agreement you authorize the company to withhold monies owed from any severance or final pay you receive upon termination of employment. 
		

		
			

		 

 

			

					

						Bryant D. Lim
August 20, 2018
Page 2

					

					

						 

				

		

			 

		

		

		
			Waiver and Amendment 
		

		
			No amendment to this offer shall be valid unless in writing and signed by you and the Head of Human Resources on behalf of the Company. 
		

		
			Employment at Will 
		

		
			While we both fully intend to begin our relationship on a positive note, it is essential to understand our employment arrangement. The Company is an “at will” employer, which means that either of us can terminate our employment arrangement at any time and for any reason or no reason. 
		

		
			For purposes of federal immigration law, you will be required to provide the company with documentary evidence of your identity and eligibility for employment in the United States. Such documentation must be provided to the Company within three (3) business days of your date of hire, or our employment relationship with you may be terminated. 
		

		
			Your employment is fully contingent upon a satisfactory background check and your execution and ongoing compliance with the attached Idera Pharmaceuticals’ Non-Disclosure Agreement, Code of Business Conduct and Ethics Agreement and our Insider Trading and Public Disclosure Policies. If the foregoing is satisfactory, please indicate your agreement by signing and returning to us the enclosed copy of this letter, together with a signed copy of the Non-Disclosure Agreement and a signed “Certification” page from the Code of Business Conduct and Ethics Agreement. 
		

		
			Please carefully review the terms and conditions of this offer as outlined in this letter. Feel free to contact Christina Amendola at 617-679-5537 if there is anything further we can do to assist you. 
		

		
			Please confirm your acceptance of this offer by signing the attached copy of this letter; including specifying your actual start date. If we do not receive these executed documents by the end of the business day on August 24, 2018 the offer set forth in this letter shall terminate. 
		

		
			Congratulations Bryant! This position is critical to the continued success and growth of Idera. We are excited to welcome you to Idera and look forward to having you join the team.
		

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Sincerely,

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						/S/ JILL CONWELL

					
					
						 

				
	
					
						Jill Conwell

					
					
						 

				
	
					
						Head of Human Resources

					
					
						 

				

		
			 
		

			
					
						 

					
					
						 

				
	
					
						Agreed and Accepted,

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						/S/ BRYANT D. LIM

					
					
						 

				
	
					
						Bryant D. Lim

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Date:  August 21, 2018

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Start Date: September 10, 2018THE
SECURITIES REPRESENTED HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES
LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH
RESPECT THERETO UNDER SUCH ACT AND APPLICABLE LAWS OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND APPLICABLE
LAWS AND AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. ANY TRANSFEREE OF THIS NOTE
SHOULD CAREFULLY REVIEW THE TERMS OF THIS NOTE.

 

MUSCLE
MAKER, INC.

 

15%
SENIOR SECURED CONVERTIBLE PROMISSORY NOTE

 

	$
    _________	New
    York, NY
	 	September
    __, 2018

 

Muscle
Maker, Inc., a California corporation (the “Company”), for value received hereby, promises to pay to _____________________,
or registered assigns (the “Holder”), the aggregate principal amount of $________ Dollars (the “Principal
Amount”), in accordance with the terms of this 15% Senior Secured Convertible Promissory Note (the “Note”).
Payment for all amounts due hereunder shall be made by wire transfer of immediately available funds, in lawful tender of the United
States, to an account designated by the Company. This Note is being issued in connection with and pursuant to that certain Securities
Purchase Agreement dated concurrently herewith (the “Agreement”) and is substantially similar to other notes
issued pursuant to the Agreement.

 

The
following is a statement of the rights of the Holder of this Note and the conditions to which this Note is subject, and to which
the Holder hereof, by the acceptance of this Note, agrees:

 

1.
Definitions. As used in this Note, the
following terms, unless the context otherwise requires, have the following meanings:

 

(i)
“Business Day” means any day except Saturday, Sunday, any day which shall be a federal legal holiday in the
United States, or any day on which banking institutions in New York, New York are authorized or required by law or other governmental
action to close.

 

(ii)
“Common Stock” means the Company’s common stock, no par value per share.

 

(iii)
“Conversion Shares” means shares of Common Stock, or equivalent substitute equity securities of the Company,
into which this Note may be converted pursuant to Section 4.

 

(iv)
“Holder” when the context refers to a holder of this Note, shall mean any person who shall at the time be the
registered holder of this Note.

 

(v)
“Issuance Date” means the date of this Note.

 

(vi)
“Liquidity Event” means (a) a Listing Event as defined in the Agreement; (b) a sale of all or substantially
all of the Company’s stock (for cash or share consideration), but excluding any merger effected exclusively for the purpose
of changing the domicile of the Company; (c) a sale or licensing of all or substantially all of the Company’s assets, unless,
in the event of a sale, the Company’s shareholders of record as constituted immediately prior to such acquisition or sale
will immediately after such acquisition or sale (by virtue of securities issued as consideration for the Company’s acquisition
or sale or otherwise) hold at least 50% of the voting power of the surviving or acquiring entity; or (d) any combination of the
foregoing.

 

    	 

    	 

    

 

2.
Interest; Repayment of the Note.

 

2.1
This Note shall accrue simple interest, from the date hereof until such principal is paid or converted as provided in Section
4, on any unpaid principal balance at the rate of fifteen percent (15%) per annum, paid in cash on a quarterly basis; provided
that, commencing upon the occurrence of any Event of Default and so long as any Event of Default exists, interest on the remaining
principal balance of this Note shall accrue at the rate of eighteen (18%) per annum; provided further that the interest rate shall
not exceed the maximum amount of interest permitted to be charged under applicable law. Upon conversion of this Note, accrued
but unpaid interest shall be paid in cash or, at the election of the Holder, converted into Conversion Shares.

 

2.2
Subject to the terms of Section 4 below, this Note shall mature, unless converted pursuant to Section 4 hereof, and all principal
and interest described herein shall be due and payable eighteen months from the Issuance Date, at which time all principal and
other amounts outstanding under this Note shall be due and payable (the “Maturity Date”). In addition, all
amounts outstanding hereunder shall be due and payable on the date upon which the repayment of this Note is accelerated upon an
Event of Default pursuant to this Note. All payments hereunder shall be made in lawful money of the United States of America and
will be credited first to interest, fees, costs, and expenses then due and the remainder to the principal amount of this Note.

 

2.3
The Company may make optional prepayments of the Principal Amount or interest on this Note at anytime.

 

3.
Legend. The Holder consents to the placement
of a legend on any certificate or other document evidencing the Conversion Shares issued by the Company that such Conversion Shares
have not been registered under the Securities Act or any state securities or “blue sky” laws and setting forth or
referring to the restrictions on transferability and sale thereof contained in this Note. The Holder is aware that the Company
will make a notation in its appropriate records with respect to the restrictions on the transferability of such Conversion Shares.
The legend to be placed on each certificate shall be in form substantially similar to the following:

 

THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED AND MAY NOT BE
SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED, OR OTHERWISE DISPOSED OF IN THE ABSENCE OF (I) AN EFFECTIVE REGISTRATION STATEMENT FOR
SUCH SECURITIES UNDER SAID ACT OR (II) AN OPINION OF COMPANY COUNSEL THAT SUCH REGISTRATION IS NOT REQUIRED.

 

4.
Conversion. The entire unpaid and outstanding
principal amount and any accrued interest thereon under this Note shall be convertible into shares of the Company’s Common
Stock, or, upon the occurrence of a Liquidity Event, into the same class and series of any equivalent substitute equity securities
sold by the Company in such Liquidity Event, as applicable (such shares, the “Conversion Shares”), in accordance
with the terms and conditions of this Section 4.

 

4.1
Intentionally Omitted.

 

4.2
Voluntary Conversion. Holder shall have the option to convert the entire unpaid and outstanding principal amount and any
accrued interest thereon under this Note into the Conversion Shares at the Conversion Price at any time.

 

4.3
Conversion Price. For purposes of this Note, the “Conversion Price” shall be $1.00 (the “Fixed Conversion
Price”); provided, however, in the event the per share price of a public offering multiplied by sixty percent (60%) at the
time of the Listing Event is less than $1.00 (the “Discounted Public Offering Price”) then the Conversion Price shall
be reset to equal the Discounted Public Offering Price. In the event the Purchasers are required to execute a Lock Up Agreement
as contemplated by Section 4(s)_of the Agreement concurrent with a public offering at the time of the Listing Event, then the
Fixed Conversion Price shall be $0.75 and the Discounted Public Offering Price shall be the public offering multiplied by forty
five percent (45%) at the time of the Listing Event.

 

    	 

    	 

    

 

4.4
Conversion Procedure.

 

4.4.1
Notice of Conversion. Before the Holder shall be entitled to convert this Note pursuant to Section 4.2, it shall surrender
this Note at the office of the Company and shall give written notice, in the form of the Notice of Conversion attached hereto
as Exhibit A, to the Company of the election to convert the same pursuant to Section 4.2 and shall state therein the name
or names in which the Conversion Shares shall be issued. At its expense, the Company shall deliver or cause to be delivered to
the Holder the applicable number of Conversion Shares in certificate form (bearing such legends as are required by applicable
state and federal securities laws in the opinion of counsel to the Company). Such conversion shall be deemed to have been made
immediately prior to the close of business on the date of such surrender of this Note and receipt of the Conversion Notice.

 

4.5
Split, Subdivision, or Combination of Shares. If the Company shall at any time while this Note remains outstanding and
unpaid, split, subdivide, or combine its equity securities, as applicable, into a different number of securities of the same class
or otherwise, or as part of a merger or acquisition transaction, the conversion ratio for such securities shall be proportionately
decreased in the case of a split or subdivision or proportionately increased in the case of a combination and the number of such
securities shall be proportionately increased in the case of a split or subdivision or proportionately decreased in the case of
a combination.

 

4.6
Fractional Shares. No fractional shares will be issued upon conversion of this Note. In lieu thereof, the Company will
pay to the Holder an amount in cash equal to the product obtained by multiplying the applicable Conversion Price applied to effect
such conversion by the fraction of a share not issued pursuant to the previous sentence.

 

5.
Events of Default. So long as this Note
will remain unpaid in whole or in part as to either principal or interest, each of the following will constitute an “Event
of Default” under this Note:

 

(a)
the commencement of an involuntary case or other proceeding against the Company seeking liquidation, reorganization, or other
relief with respect to it or its debts under any applicable bankruptcy, insolvency, or other similar law now or hereafter in effect,
or seeking the appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the
Company, or for any substantial part of the property of the Company or the winding up or liquidation of the affairs of the Company,
and such case or proceeding remains unstayed and undismissed for a period of sixty (60) days, or an order for relief is entered
against the Company under the federal bankruptcy laws as now or hereafter in effect;

 

(b)
the commencement by the Company of a voluntary case under any applicable bankruptcy, insolvency, or other similar law now or hereafter
in effect, or consent to the entry of an order for relief in an involuntary case under any such law, or consent to the appointment
or taking possession by a receiver, liquidator, assignee, custodian, trustee, sequestrator (or similar official) of the Company,
or for any substantial part of the property of the Company, or the Company makes any general assignment for the benefit of creditors,
or fails generally to pay its debts as they come due, or takes any corporate action to authorize any of the foregoing, provided,
however, with respect to subsidiaries operating locations that have or are closing store locations, the Company, in its sole discretion,
may file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction with respect to such
subsidiary;

 

(c)
failure on the part of the Company to observe or perform any of the material terms or covenants contained in this Note and continuance
of such failure for a period of ten (10) days following receipt of notice from the Holders specifying such covenant and the nature
of the Company’s non-performance;

 

(d)
failure on the part of the Company to complete a Liquidity Event as of the Maturity Date; or

 

(e)
failure on the part of the Company to fully repay this Note by the Maturity Date.

 

    	 

    	 

    

 

6.
Remedies. If an Event of Default shall
occur and be continuing, then so long as the Event of Default shall continue to exist the Holders may, by written notice to the
Company, declare the unpaid principal amount of this Note, together with all interest accrued hereunder, to be forthwith due and
payable immediately in cash, without further presentment, demand, protest or further notice of any kind, all of which are hereby
expressly waived by the Company, to the fullest extent permitted by applicable law. If an Event of Default shall occur, the Principal
Amount shall be increased by 30%. All Notes for which the full amount hereunder shall have been paid in accordance herewith shall
promptly be surrendered to or as directed by the Company. The Holder may enforce any and all of its rights and remedies hereunder
and all other remedies available to it under applicable law. Such declaration may be rescinded and annulled by the Holder at any
time prior to payment hereunder and the Holder shall have all rights as a Note holder until such time, if any, as the full payment
under this Section 6 shall have been received by it. No such rescission or annulment shall affect any subsequent Event of Default
or impair any right consequent thereon. In addition to the foregoing remedies, upon the occurrence of any Event of Default, the
Holder may exercise any other right, power, or remedy granted to it by the Transaction Documents (as defined in the Agreement)
or otherwise permitted to it by law, either by suit in equity or by action at law, or both.

 

Notwithstanding
the foregoing, the Company, upon the occurrence and continuation of an Event of Default, shall pay, as interest, 5% of the outstanding
Principal Amount of each Holder’s Note on each monthly anniversary of the occurrence of the Event of Default while it is
continuing.

 

Further,
while an Event of Default is continuing, 15% of any funds raised from sales of the Company’s securities shall be paid to
the Holders on a pro rata basis, which such payments shall be applied to the Principal Amount outstanding.

 

7.
Assignment. Subject to securities laws,
the rights and obligations of the Company and the Holder of this Note shall be binding upon and benefit the successors and assigns
of the parties; provided that the Company shall not assign its rights or obligations under this Note without the prior written
consent of the Holder.

 

8.
Waiver and Amendment. Any provision of
this Note may be amended, waived, or modified upon the written consent of the Company and Holder.

 

9.
Notices. Any notice, request or other
communication required or permitted hereunder shall be in writing and shall be deemed to have been duly given if faxed with confirmation
of receipt by the sending device or if delivered by internationally recognized overnight courier such as FedEx or UPS, at the
respective addresses of the parties as set forth below, or via electronic mail transmission:

 

If
to Company:

 

Muscle
Maker, Inc.

308
East Renfro Street, Suite 101

Burleson,
Texas 76028

 

Attn:
Chief Executive Officer

 

If
to Holder:

 

c/o

Catalytic
Holdings 1 LLC

135
Oceana Drive East, apt 4E

Brooklyn,
NY 11235

Tel:
917-724-9222

Email:
ds@catalytic-capital.com

 

Any
party hereto may by notice so given change its address for future notice hereunder. Notice shall conclusively be deemed to have
been given when delivered, faxed or transmitted in the manner set forth above and shall be deemed to have been received when delivered.

 

10.
No Shareholder Rights. For so long as
the Notes remain unconverted, nothing contained in this Note shall be construed as conferring upon the Holder or any other person
the right to vote or to consent or to receive notice as a shareholder in respect of meetings of shareholders for the election
of directors of the Company or any other matters or any rights whatsoever as a shareholder of the Company; and no dividends or
interest shall be payable or accrued in respect of this Note or the Conversion Shares obtainable hereunder until, and only to
the extent that, this Note shall have been converted.

 

11.
Governing Law. This Note shall be governed
by and construed in accordance with the laws of the State of New York, without regard to principles of conflicts of law.

 

12.
Waiver. The Company hereby waives demand,
notice, presentment, protest, and notice of dishonor.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Note to be issued as of the Issuance Date.

 

	 	MUSCLE
    MAKER, INC.
	 	           	 
	 	By:	 
	 	 	Michael
    Roper
	 	 	Chief
    Executive Officer

 

	 	Name
    of Holder:
	 	 	 
	 	By:	 
	 	 	 
	 	Address:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 

    	 

    	 

    

 

EXHIBIT
A

 

NOTICE
OF CONVERSION

 

(To
Be Signed Only Upon Voluntary Conversion of Note)

 

To:
Muscle Maker, Inc.

 

The
undersigned, the holder of the foregoing Note, hereby surrenders such Note for conversion into _______ shares of Conversion Shares
of Muscle Maker, Inc. to the extent of $__________________ unpaid principal and interest of such Note, and requests that the certificates
for such shares be issued in the name of, and delivered to ______________________, whose address is ______________________.

 

	Dated:	_____________________	 
	 	 	 
	 	 	 
	 	 	(Signature must conform in all respects to name of the registered holder of the Note)
	 	 	 
	 	 	 
	 	 	(Address)

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