Document:

hlco_ex107.htm

EXHIBIT 10.7
 LIMITED WAIVERTO
 CREDIT AGREEMENT
  
 THIS LIMITED WAIVER TO CREDIT AGREEMENT (this “Limited Waiver”), dated as of October 27, 2022 (the “Effective Date”), is entered into by and among HLCO BORROWER, LLC, a Delaware limited liability company (“Company”), THE HEALING COMPANY INC., a Nevada corporation (“Parent”), the Lenders party to the Credit Agreement and WESTMOUNT GROUP LLC, as administrative agent for the Lenders (in such capacity, the “Administrative Agent”).
  
 RECITALS
  
 WHEREAS, Company, Parent, the Lenders and Administrative Agent entered into that certain Credit Agreement dated as of August 4, 2022 (as may be amended, restated, amended and restated, or otherwise modified from time to time, being hereinafter referred to collectively as the “Credit Agreement”);
  
 WHEREAS, Parent has advised Administrative Agent that (i) Company desires to acquire all of the Assets of Your Super, Inc., a Delaware corporation (“Your Super”) pursuant to that certain Asset Purchase Agreement, dated September 30, 2022 (the “Purchase Agreement”) by and between, among others, Parent, Company, and Shareholder Representative Services LLC, a Colorado limited liability company, solely in its capacity as the representative of the stockholders of Seller of Your Super (the “Specified Acquisition”), and (ii) Your Super has negative EBITDA over the prior twelve month period;
  
 WHEREAS, Pursuant to (i) Section 7.1(p) of the Credit Agreement, the Credit Parties are required to maintain a Debt to EBITDA Ratio not to be greater than 4.75:1.00 as of the last day of each calendar month (the “EBITDA Requirement”), and (ii) Section 3.2(a)(iii) of the Credit Agreement, the obligation of each Lender to make any Term Loan on any Credit Date is subject to the condition precedent that both before and after making any Term Loans on such Credit Date, Total Utilization shall not exceed the Borrowing Base (the “Borrowing Base Condition Precedent”, and together with the EBITDA Requirement, “Specified Requirements”);
  
 WHEREAS, Company and Parent acknowledge that unless the Specified Requirements are waived by Agent and Lenders, (i) the Eligible Asset Advance Rate for the Specified Acquisition would be $0 and (ii) as a direct result of the Specified Acquisition, Parent and Company acknowledge and agree they shall not be in compliance with the Specified Requirements;
  
 WHEREAS, Company and Parent have requested that Administrative Agent and Lenders provide a Term Loan in the amount of $3,000,000 (the “Specified Advance”) and waive the Specified Requirements in connection with the Specified Acquisition; and
  
 WHEREAS, Administrative Agent and Lenders are willing to do so upon and subject to the terms and conditions of this Limited Waiver and the compliance of the Company and Parent with the conditions set forth herein and the other provisions of this Limited Waiver and the Credit Agreement.
  
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 AGREEMENT
  
 NOW, THEREFORE, in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:
  
 ARTICLE I
  
 Definitions
  
 Capitalized terms used in this Limited Waiver are defined in the Credit Agreement unless otherwise stated.
  
 ARTICLE II
  
 Limited Waiver
  
 2.1 Limited Waiver. Company, Parent, the Lenders and Administrative Agent acknowledge that after giving effect to the Specified Acquisition, the Parent and Company will not be able to comply with the Specified Requirements. Solely with respect to the Specified Acquisition, and subject to satisfaction of the conditions set forth in Articles II and III, Administrative Agent and Lenders hereby grant a one-time, limited waiver of the Specified Requirements, including (i) waiver of the Maximum Debt to EBITDA Ratio pursuant to clause (c) of Schedule 1.1.1 to the Credit Agreement with respect to Your Super, and (ii) waiver of the Borrowing Base Condition Precedent in connection with the Specified Acquisition requiring that Total Utilization shall not exceed the Borrowing Base. Subject to the requirements set forth in Section 2.3 below, and otherwise until such time as agreed to by Administrative Agent in its sole discretion, (i) the EBITDA of Your Super and Total Utilization incurred in connection with the Specified Acquisition shall not be included in the calculation of the Maximum Debt to EBITDA Ratio and (ii) the Eligible Asset Advance Rate for the Specified Acquisition shall be deemed to be $3,000,000.
  
 2.2 Interest Reserve.
  
 (a) Company hereby agrees to maintain an amount no less than the Interest Reserve Amount (as defined below) in the Master Collection Account at all times until Company and Parent are in compliance with the Specified Requirements, at which point, so long as no Event of Default or Early Amortization Event has occurred or is continuing, the Interest Reserve Amount shall be released and applied pursuant to Section 2.12 of the Credit Agreement.
  
 (b) Company hereby agrees that the Interest Reserve Amount has been established in order to fund the payment of accrued interest on the Term Loan with respect to the Assets of Your Super which becomes due and payable in accordance with the Credit Agreement, and may be applied on each Interest Payment Date pursuant to Section 2.13(a)(iii) of the Credit Agreement. In the event that funds from the Interest Reserve Amount are depleted at any time that Parent and Company are not in compliance with the Specified Requirements, Company shall replenish the Master Collection Account in an amount sufficient to maintain the Interest Reserve Amount.
  
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 2.3 Eligible Asset Advance Rate. Company hereby agrees that if the EBITDA of Your Super as of the last Business Day of each calendar month is less than $75,000, the Eligible Asset Advance Rate with respect to the Specified Acquisition, which as of the date hereof shall be deemed to be $3,000,000, shall be reduced by an amount equal to $150,000.
  
 ARTICLE III
  
 Conditions to Effectiveness
  
 3.1 Conditions Precedent. The effectiveness of this Limited Waiver is subject to the satisfaction of the following conditions precedent in a manner satisfactory to Administrative Agent, unless specifically waived in writing by Administrative Agent:
  
 (a) Administrative Agent shall have received this Limited Waiver duly executed by each party hereto;
  
 (b) Administrative Agent shall have received an amended and restated Warrant, duly executed by each party thereto, that shall permit Westmount Group LLC, or its successors and permitted assigns to exercise the Warrant for up to 1,560,148 Shares (as defined in the Warrant), and is otherwise in form and substance satisfactory to Administrative Agent;
  
 (c) all corporate proceedings taken in connection with the transactions contemplated by this Limited Waiver and all documents, instruments and other legal matters incident thereto shall be reasonably satisfactory to Administrative Agent;
  
 (d) Administrative Agent shall have received such other documents reasonably requested by Administrative Agent in connection with this Limited Waiver;
  
 (e) the Company shall have paid all reasonable invoiced costs, fees and expenses (including, without limitation, legal fees and expenses of attorneys and other advisors) due and payable pursuant to or in connection with this Limited Waiver;
  
 (f) Administrative Agent shall have received evidence of the sale of equity interests in the Parent to investor(s) in exchange for a capital investment in the Parent, which shall have occurred no earlier than August 23, 2022, pursuant to offering documents by and among the Parent and the investor(s) party thereto in an amount not less than $1,000,000;
  
 (g) Company shall have deposited One Hundred Twelve Thousand Two Hundred Seventy Five Dollars and 00/100 ($112,275.00) into the Master Collection Account, which amount is equal to the sum of three months accrued interest at Term SOFR as of August 31, 2022, on the Term Loan in connection with the Assets of Your Super (the “Interest Reserve Amount”); and
  
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 (h) Administrative Agent shall have received the documents and other deliverables set forth in Section 5.9 of the Credit Agreement with respect to the Specified Acquisition.
  
 3.2 Conditions Subsequent. The obligations of the Lenders to continue to make any Term Loans is subject to the fulfillment, on or before the date applicable thereto, of the following conditions subsequent (the failure by the Parent to so perform or cause to be performed such condition subsequent as and when required by the terms below shall constitute an Event of Default (unless such date is extended, in writing, by Administrative Agent, which Administrative Agent may do in its sole discretion):
  
 (a) No later than seven (7) days after the date of the Specified Advance, the Parent shall provide evidence satisfactory to Administrative Agent of the repayment or cancellation and forgiveness in full of all obligations due and payable under that certain Amended and Restated Credit and Security Agreement dated April 13, 2022 by and among Your Superfoods, Inc. and Your Super, Inc., as Borrowers, and CircleUp, as Lender, as amended by Joinder, Amendment and Forbearance Agreement dated as of September 2, 2022, in the aggregate principal amount of $7,457,829.76 (the “Acquired Debt”). In addition, the Administrative Agent shall have received evidence of the release of all Liens granted in connection with Acquired Debt, with Uniform Commercial Code or other appropriate termination statements and documents filed to evidence the foregoing
  
 ARTICLE IV
  
 No Other Waiver
  
 Company hereby agrees that irrespective of (i) any waivers or consents previously granted by Administrative Agent regarding the Credit Agreement and the other Credit Documents (other than the limited waiver granted in Section 2.1 hereof), (ii) any previous failures or delays of Administrative Agent in exercising any right, power or privilege under the Credit Agreement or the other Credit Documents, or (iii) any previous failures or delays of Administrative Agent in the monitoring or in the requiring of compliance by Company with the duties, obligations, and agreements of Company in the Credit Agreement and the other Credit Documents, Company will comply strictly with its duties, obligations and agreements under the Credit Agreement and the other Credit Documents.
  
 Except as expressly provided in Section 2.1 hereof, nothing contained in this Limited Waiver or any other communication between Administrative Agent or any Lender and Company or any other Credit Party shall be a waiver of any past, present or future violation, Default or Event of Default of any Credit Party under the Credit Agreement or any other Credit Document. Similarly, Administrative Agent hereby expressly reserves any rights, privileges and remedies under the Credit Agreement and each other Credit Document that Administrative Agent may have with respect to each violation, Default or Event of Default, and any failure by Administrative Agent to exercise any right, privilege or remedy as a result of the violations set forth above shall not directly or indirectly in any way whatsoever either (i) impair, prejudice or otherwise adversely affect the rights of Administrative Agent at any time to exercise any right, privilege or remedy in connection with the Credit Agreement or any other Credit Document, (ii) amend or alter any provision of the Credit Agreement or any other Credit Document or any other contract or instrument, or (iii) constitute any course of dealing or other basis for altering any obligation of any Credit Party or any rights, privilege or remedy of Administrative Agent under the Credit Agreement or any other Credit Document or any other contract or instrument. Except as expressly provided in Section 2.1 hereof, nothing in this Limited Waiver shall be construed to be a consent by Administrative Agent to any prior, existing or future violations of the Credit Agreement or any other Credit Document.
  
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 ARTICLE V
  
 Ratifications, Representations and Warranties
  
 5.1 Ratifications. The terms and provisions set forth in this Limited Waiver shall modify and supersede all inconsistent terms and provisions set forth in the Credit Agreement and the other Credit Documents, and, except as expressly modified and superseded by this Limited Waiver, the terms and provisions of the Credit Agreement and the other Credit Documents are ratified and confirmed and shall continue in full force and effect. Company, Parent and Administrative Agent agree that the Credit Agreement and the other Credit Documents, as amended hereby, shall continue to be legal, valid, binding and enforceable in accordance with their respective terms. Company and Parent agree that this Limited Waiver is not intended to and shall not cause a novation with respect to any or all of the Obligations.
  
 5.2 Representations and Warranties. Company and Parent hereby represent and warrant to Administrative Agent that (a) the execution, delivery and performance of this Limited Waiver and any and all other Credit Documents executed and delivered by them in connection herewith have been authorized by all requisite action on the part of such Credit Party and will not violate the organizational documents of such Credit Party; (b) the representations and warranties contained herein and in the Credit Agreement, as modified by this Limited Waiver, and the other Credit Documents are true and correct in all material respects as of the date hereof, as if made on the date hereof (except for those representations and warranties made as of a specific date that is not the date hereof); (c) no Default or Event of Default under the Credit Agreement, as amended hereby, has occurred and is continuing; and (d) such Credit Party has not amended its organizational documents since the date of the Credit Agreement.
  
 ARTICLE VI
  
 Miscellaneous Provisions
  
 6.1 Survival of Representations and Warranties. All representations and warranties made in the Credit Agreement or any other Credit Document, including, without limitation, any document furnished in connection with this Limited Waiver, shall survive the execution and delivery of this Limited Waiver and the other Credit Documents, and no investigation by Administrative Agent or any Lender or any closing shall affect the representations and warranties or the right of Administrative Agent and each Lender to rely upon them.
  
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 6.2 Reference to Credit Agreement. Each of the Credit Agreement and the other Credit Documents, and any and all other documents or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Credit Agreement, as amended hereby, are hereby amended so that any reference in the Credit Agreement and such other Credit Documents to the Credit Agreement shall mean a reference to the Credit Agreement, as amended hereby.
  
 6.3 Severability. Any provision of this Limited Waiver held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Limited Waiver and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.
  
 6.4 Successors and Assigns. This Limited Waiver is binding upon and shall inure to the benefit of Administrative Agent and each Lender and the Credit Parties and their respective successors and assigns, except that no Credit Party may assign or transfer any of its rights or obligations hereunder without the prior written consent of Administrative Agent.
  
 6.5 Counterparts. This Limited Waiver may be executed in one or more counterparts, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same instrument. This Limited Waiver may be executed by facsimile or other electronic transmission, which facsimile or other electronic signatures shall be considered original executed counterparts for purposes of this Section 6.5, and each party to this Limited Waiver agrees that it will be bound by its own facsimile or electronic signature and that it accepts the facsimile or electronic signature of each other party to this Limited Waiver.
  
 6.6 Effect of Waiver. No consent or waiver, express or implied, by Administrative Agent to or for any breach of or deviation from any covenant or condition by any Credit Party shall be deemed a consent to or waiver of any other breach of the same or any other covenant, condition or duty.
  
 6.7 Headings. The headings, captions, and arrangements used in this Limited Waiver are for convenience only and shall not affect the interpretation of this Limited Waiver.
  
 6.8 Applicable Law. THE CREDIT DOCUMENTS ARE GOVERNED BY FEDERAL LAW AND, FOR THE PURPOSES OF EXPORTATION OF INTEREST AND INTEREST FEES UNDER FEDERAL LAW, ADMINISTRATIVE AGENT RELIES ON NEW YORK LAW. TO THE EXTENT THAT STATE LAW APPLIES AND IS NOT PREEMPTED BY FEDERAL LAW, THEN PURSUANT TO NEW YORK GENERAL OBLIGATIONS LAW SECTION 5-1401 THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THE CREDIT DOCUMENTS WITHOUT GIVING EFFECT TO ITS CHOICE OF LAW PROVISIONS THAT WOULD RESULT IN APPLICATION OF THE LAWS OF A DIFFERENT JURISDICTION. TO THE EXTENT THAT ADMINISTRATIVE AGENT OR ANY LENDER HAS GREATER RIGHTS OR REMEDIES UNDER FEDERAL LAW, WHETHER AS A NATIONAL BANK OR OTHERWISE, THIS PARAGRAPH SHALL NOT BE DEEMED TO DEPRIVE ADMINISTRATIVE AGENT OR SUCH LENDER OF SUCH RIGHTS AND REMEDIES AS MAY BE AVAILABLE UNDER FEDERAL LAW; EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIEN AND SECURITY INTEREST CREATED PURSUANT HERETO AND PURSUANT TO THE OTHER CREDIT DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, FEDERAL LAW OR THE LAW OF THE STATE OF NEW YORK, AS APPLICABLE, SHALL GOVERN THE CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF ALL CREDIT DOCUMENTS AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW, COMPANY HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS LIMITED WAIVER AND THE OTHER CREDIT DOCUMENTS.
  
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 6.9 Final Agreement. THE CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS, EACH AS AMENDED HEREBY, REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF ON THE DATE THIS LIMITED WAIVER IS EXECUTED. THE CREDIT AGREEMENT AND THE OTHER CREDIT DOCUMENTS, AS AMENDED HEREBY, MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. NO MODIFICATION, RESCISSION, WAIVER, RELEASE OR LIMITED WAIVER OF ANY PROVISION OF THIS LIMITED WAIVER SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY COMPANY, PARENT AND ADMINISTRATIVE AGENT.
  
 6.10 Release. EACH CREDIT PARTY HEREBY ACKNOWLEDGES THAT IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY ANY ADVANCES, BORROWINGS, OR EXTENSIONS OF CREDIT FROM ADMINISTRATIVE AGENT AND LENDERS UNDER THE CREDIT AGREEMENT OR THE OTHER CREDIT DOCUMENTS OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM LENDERS OR ADMINISTRATIVE AGENT. EACH OF THE CREDIT PARTIES HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDERS, ADMINISTRATIVE AGENT, THEIR PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE EFFECTIVE DATE, WHICH ANY OF THE CREDIT PARTIES MAY NOW OR HEREAFTER HAVE AGAINST LENDERS AND ADMINISTRATIVE AGENT, THEIR PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY ADVANCES, BORROWINGS, OR EXTENSIONS OF CREDIT FROM LENDERS AND ADMINISTRATIVE AGENT UNDER THE CREDIT AGREEMENT OR THE OTHER CREDIT DOCUMENTS, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE CREDIT AGREEMENT. OR OTHER CREDIT DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS LIMITED WAIVER.
  
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 IN WITNESS WHEREOF, this Limited Waiver has been executed and is effective as of the date first above written.
  
  	 	COMPANY:	
	  
	  
	  

	  
	 HLCO BORROWER, LLC, a Delaware limited liability company,
	  

	  
	 as Company
	  

	 	 	 	 
		By:	/s/ Simon Belsham 	
	  
	 Name:
	Simon Belsham 	 
	 	Title:	Authorized Person	 

 
  
  	 	PARENT:	
	  
	  
	  

	  
	 THE HEALING COMPANY, INC., a Nevada corporation
	  

	  
	 as Parent 
	  

	 	 	 	 
		By:	/s/ Simon Belsham	
	  
	 Name: 
	Simon Belsham	 
	 	Title:	Chief Executive Officer	 

 
  
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  	 	ADMINISTRATIVE AGENT:  
	
	  
	 WESTMOUNT GROUP LLC, 
	  

	  
	 as Administrative Agent and Collateral Agent
	  

	 	 	 	 
		By:	/s/ Marc Helwani	
	  
	 Name: 
	Marc Helwani	 
	 	Title: 	Managing Member	 
	 	 	 	 

 
  
  	 	LENDER:	
	  
	  
	  

	  
	 WESTMOUNT GROUP LLC,
	  

	  
	 as a Lender
	  

	 	 	 	 
		By:	/s/ Marc Helwani	
	  
	 Name: 
	Marc Helwani	 
	 	Title:	Managing Member	 

 
  
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	9ex_447448.htm

Exhibit 4.1

 

ASSIGNMENT OF PROMISSORY NOTE

 

 

THIS ASSIGNMENT is made this 7th day of November, 2022, by and between Avenue Venture Opportunities Fund, L.P. ("Assignor"), and Silverback Capital Corporation (“Assignee").

 

 

ARTICLE I

ASSIGNMENT OF PROMISSORY NOTE

 

Section 1.1         Debenture

 

Assignor loaned $15,000,000 to Statera Biopharma, Inc. (formerly Cytocom Inc.) (“Company”) on or about April 26, 2021, as evidenced by the Promissory Note attached hereto as Exhibit A (the “Original Promissory Note”).

 

Section 1.2         Assignment and Consideration.

 

In consideration of $400,000 (the “Purchase Price”), Assignor assigns to Assignee all of the Assignor’s right, title and interest in and to, free and clear of any lien, claim or encumbrance, a $400,000 portion of the Original Promissory Note described in Section 1.1. The assigned portion of the Original Promissory Note shall be evidenced by an Amended and Restated Convertible Note Due May 1, 2024 (the “A&R Note”), in the form attached hereto as Exhibit B.

 

Section 1.3         Closing.

 

Closing shall occur as follows: The earlier of (i) five (5) business days from the date hereof or (ii) when the Conversion Shares (as defined in the A&R Note) are successfully deposited in the Assignee's brokerage account, such Conversion Shares are cleared for resale, and Assignee trades the Conversion Shares free from restrictions of any kind including by Assignee’s Brokerage firm, DTC, Company or Company’s Transfer Agent; the earlier such date, the “Closing Date.” On the Closing Date, the Purchase Price will be remitted to Assignor via wire transfer of immediately available funds pursuant to wire transfer instructions attached hereto as Exhibit C. Assignee shall use commercially reasonable efforts to provide Assignor written notice of the foregoing; provided that Assignee shall not have liability to Assignor for any failure to provide such notice.

 

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF THE ASSIGNOR

 

Assignor hereby represents and warrant in all material respects to Assignee, with the intent that it will rely thereon in entering into this Agreement and in approving and completing the transactions contemplated hereby, that:

 

Section 2.1         Authority; Due Authorization

 

The Assignor has the full right, power and authority to execute and deliver this Agreement, to consummate the transactions contemplated hereby and thereby and to perform its obligations hereunder and thereunder. The execution and delivery by the Assignor of this Agreement, the performance by the Assignor of its obligations hereunder and thereunder,1 have been duly and validly authorized by all necessary action in respect thereof. No other proceedings on the part of the Assignor are necessary to authorize the execution and delivery of this Agreement and the performance by the Assignor of its obligations hereunder or thereunder. This Agreement has been, or, when executed will be, duly executed and delivered by the Assignor. This Agreement constitutes valid and binding obligations of the Assignor, enforceable against it in accordance with their respective terms, subject to applicable bankruptcy, insolvency, moratorium, reorganization and similar laws affecting creditor's rights generally and to general equitable principles.

 

Section 2.2         Intentionally Omitted2

 

 

1 There are no “deliverables” from Assignee. The A&R Note is being issued by the Company.

2 Unfortunately, Avenue cannot provide indemnity.

 

 

 

 

Section 2.3         Non-Affiliate; Consideration

 

Assignor is not now an affiliate of Statera Biopharma nor has been an officer, director or affiliate at any time during the 90 days prior hereto. Assignor represents that good and valuable consideration was paid for the Original Promissory Note on or about the original issuance date thereof and that such amount has not been repaid except as otherwise set forth herein.

 

 

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE ASSIGNEE

 

Assignee hereby represents and warrant in all material respects to Assignor, with the intent that it will rely thereon in entering into this Agreement and in approving and completing the transactions contemplated hereby, that:

 

Section 3.1         Authority; Due Authorization

 

The Assignee has the full right, power and authority to execute and deliver this Agreement, to consummate the transactions contemplated hereby and thereby and to perform its obligations hereunder and thereunder. The execution and delivery by the Assignee of this Agreement, the performance by the Assignee of its obligations hereunder and thereunder, including the delivery of the Closing Deliverables, have been duly and validly authorized by all necessary action in respect thereof. No other proceedings on the part of the Assignee are necessary to authorize the execution and delivery of this Agreement and the performance by the Assignee of its obligations hereunder or thereunder. This Agreement has been, or, when executed will be, duly executed and delivered by the Assignee. This Agreement constitutes valid and binding obligations of the Assignee, enforceable against it in accordance with their respective terms, subject to applicable bankruptcy, insolvency, moratorium, reorganization and similar laws affecting creditor's rights generally and to general equitable principles.

 

Section 3.2         Indemnification

 

Assignee agrees to indemnify and save harmless Assignor from and against any and all claims, demands, actions, suits, proceedings, assessments, judgments, damages, costs, losses and expenses, including any payment made in good faith in settlement of any claim (subject to the right of Assignee to defend any such claim), resulting from the breach by Assignee of any representation or warranty made under this Agreement or from any misrepresentation in or omission from any certificate or other instrument furnished or to be furnished by Assignee hereunder.

 

 

ARTICLE IV

MISCELLANEOUS

 

Section 4.1         Survival of Representations, Warranties and Agreements

 

The representations, warranties and covenants in this Agreement, including any rights arising out of any breach of such representations and warranties, shall survive the Closing for a period of two years.

 

Section 4.2         Transfer; Successors and Assigns

 

The provisions of this Agreement shall inure to the benefit of, and shall be binding upon, the successors and permitted assigns of the parties hereto; provided, however, that this Agreement may not be assigned in the absence of the prior written consent of the Assignee.

 

Section 4.3         Governing Law

 

This Agreement and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of New York, without giving effect to principles or conflicts of law.

 

Section 4.4         Counterparts

 

This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. This Agreement may be executed by facsimile signature and/or a scan of any such signature into electronic format.

 

 

 

 

Section 4.5         Titles and Subtitles

 

The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

 

Section 4.6         Notices

 

Except as may be provided herein, all notices, requests, waivers and other communications under this Agreement shall be in writing and shall be conclusively deemed delivered and effective (i) when hand delivered to the other party, (ii) five business days after being sent by registered or certified mail, return receipt requested, postage prepaid, (iii) one business day after being sent via a reputable nationwide overnight courier service guaranteeing next business day delivery, (iv) via electronic mail or (iv) in the case of a facsimile transmission, upon transmission thereof by the sender and the issuance by the transmitting machine of a confirmation slip confirming that the number of pages constituting the notice have been transmitted without error; provided, however, that the sender shall contemporaneously mail a copy of the notice to the addressee by the method provided for in (i) or (ii) above, but such mailing shall in no way alter the time at which the notice sent by facsimile transmission is deemed received, in each case to the intended recipient as set forth below:

 

If to the Assignor, to:

 

Avenue Venture Opportunities Fund, L.P.

11 West 42nd Street, 9th Floor

New York, New York 10036

Email: tgreenbarg@avenuecapital.com

 

 

If to the Assignee, to:

 

Silverback Capital Corporation

Email: documents@silverbackcap.com

 

 

Section 4.7         Fees and Expenses

 

Except as otherwise expressly provided herein, the Assignor and Assignee will each pay their own respective costs and expenses in connection with the negotiation, preparation, execution and delivery of this Agreement and the consummation of the transactions contemplated hereby, including, but not limited to, attorneys' fees, accountants' fees and other professional fees and expenses.

 

Section 4.8         Amendments and Waivers

 

Any term of this Agreement may be amended, only in writing signed by the Assignor and the Assignee.

 

Section 4.9         Severability

 

If one or more provisions of this Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement for such provision, then (a) such provision shall be excluded from this Agreement, (b) the balance of the Agreement shall be interpreted as if such provision were so excluded and (c) the balance of the Agreement shall be enforceable in accordance with its terms

 

Section 4.10       Delays or Omissions

 

No delay or omission to exercise any right, power or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power or remedy of such non- breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

 

 

 

Section 4.11       Entire Agreement

 

This Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements relating to the subject matter hereof existing between the parties hereto are expressly canceled.

 

IN WITNESS WHEREOF, the Assignor has executed this agreement on the date first stated above.

 

 

Avenue Venture Opportunities Fund, L.P.

 

By:         Avenue Venture Opportunities Partners, LLC

Its:          General Partner

 

	By:	/s/ Sonia Gardner	 

Name:  Sonia Gardner

Title:     Authorized Signatory

 

 

Silverback Capital Corporation

 

	By:	/s/ Gillian Gold	 

Name: Gillian Gold

Title: Authorized Signatory

 

 

Acknowledged by:

 

Statera Biopharma, Inc

 

 

	By:	/s/ Michael K. Handley	 

Name: Michael K. Handley

Title: Chief Executive Officer, Director

 

 

 

 

Exhibit A

(Original Promissory Note)

 

Exhibit B

(A&R Note)

 

Exhibit C

(Avenue’s wire instructions)

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