Document:

ex101citibankthirdamendm

                                                                    Exhibit 10.1                                                                                                                                          EXECUTION VERSION                                                                                    THIRD AMENDMENT TO MASTER REPURCHASE AGREEMENT AND OTHER                          TRANSACTION DOCUMENTS         THIRD  AMENDMENT  TO  MASTER  REPURCHASE  AGREEMENT  AND  OTHER TRANSACTION DOCUMENTS, dated as of January 9, 2020 (this “Amendment”), by  and among GP COMMERCIAL CB LLC, a Delaware limited liability company (“Seller”), as  seller, CITIBANK, N.A., a national banking association (including any successor and assigns  thereto,  “Purchaser”),  as  purchaser,  and  acknowledged  and  agreed  to  by GRANITE  POINT  MORTGAGE TRUST, INC., a Maryland corporation (“Guarantor”), as guarantor.  Capitalized  terms used and not otherwise defined herein shall have the meanings given to such terms in the  Repurchase Agreement (as defined below).                                    RECITALS         WHEREAS, Seller and Purchaser entered into that certain Master Repurchase Agreement,  dated as of June 28, 2017 (as amended by the First Amendment to Master Repurchase Agreement  and Other Transaction Documents, dated as of February 28, 2019, and the Second Amendment to  Master Repurchase Agreement and Other Transaction Documents, dated as of July 15, 2019 the  “Original Repurchase Agreement”; as amended by this Amendment and as the same may be further  amended,  replaced,  restated,  supplemented  or  otherwise  modified from time to time, the  “Repurchase Agreement”);         WHEREAS,  Seller  and  Purchaser  entered  into  that  certain  Fee  Letter,  dated  as  of  June 28, 2017  (as  amended  by  the  First  Amendment  to  Fee  Letter and  Other  Transaction  Documents,  dated  as  of  January 11, 2019,  the  Second  Amendment  to  Fee  Letter  and  Other  Transaction Documents, dated as of July 15, 2019, and the Third Amendment to Fee Letter and  Other Transaction Documents, dated as of the date hereof and as the same may be further amended,  replaced, restated, supplemented or otherwise modified from time to time, the “Fee Letter”); and         WHEREAS,  Seller  and  Purchaser  each  desire  to  make  certain  modifications  to  the  Original Repurchase Agreement and the other Transaction Documents pursuant to and the terms  and conditions of this Amendment;         WHEREAS,  it  is  a  condition  to  the  effectiveness  of  this Amendment,  that  Guarantor  reaffirms the terms and conditions of the Guaranty; and         NOW  THEREFORE,  in  consideration  of  the  foregoing  recitals,  and  other  good  and  valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties  hereto, intending to be legally bound, agree as follows:                                    ARTICLE 1            AMENDMENTS TO ORIGINAL REPURCHASE AGREEMENT         (a)   The  definition  of  “Stated  Facility  Expiration  Date”  set  forth  in Article  2  of  the  Original Repurchase Agreement is hereby amended and restated in its entirety as follows:    26384869.3.BUSINESS -1-  

 

      “Stated Facility Expiration Date” shall mean January 9, 2023.                                    ARTICLE 2              AMENDMENT TO OTHER TRANSACTION DOCUMENTS         Each  Transaction  Document  is  hereby  amended  such  that  each  reference  to  the  “Repurchase Agreement”  shall  mean  the  Original  Repurchase Agreement  as  amended  by  this  Amendment  and  as  the  same  may  be  further  amended,  replaced,  restated,  supplemented  or  otherwise modified from time to time.                                    ARTICLE 3                               REPRESENTATIONS         (a)   Each of Seller and Guarantor represents and warrants to Purchaser, as of the date  of this Amendment, as follows:               (i)   it is duly authorized to execute and deliver this Amendment and has taken        all necessary action to authorize such execution, delivery and performance;              (ii)  the person signing this Amendment on its behalf is duly authorized to do so       on its behalf;              (iii) the execution, delivery and performance of this Amendment will not violate       any Requirement of Law applicable to it or its organizational documents or any agreement       by which it is bound or by which any of its assets are affected;               (iv)  the execution, delivery and performance of this Amendment will not be in       conflict with, result in a breach of, or constitute (with due notice or lapse of time or both)       a default under, or result in the creation or imposition of any lien of any nature whatsoever       upon any of the property or assets of such Person, pursuant to any such agreement;               (v)   except for those obtained or filed on or prior to the date hereof, such Person       is  not  required  to  obtain  any  consent,  approval  or  authorization  from,  or  to  file  any       declaration or statement with, any governmental authority or other agency in connection       with or as a condition to the execution, delivery or performance of this Amendment;               (vi)  this Amendment is a legal and binding obligation of such  Person  and  is       enforceable  against  such  Person  in  accordance  with  its  terms,  except  as  limited  by       bankruptcy, insolvency or other laws of general application relating to the enforcement of       creditors’ rights and subject, as to enforceability, to general principals of equity, regardless       whether enforcement is sought in a proceeding in equity or at law;              (vii) this Amendment has been duly executed and delivered by it;              (viii) no  event  has  occurred  and  is  continuing  which  constitutes  an  Event  of       Default  under  the  Repurchase  Agreement,  the  Fee  Letter  or  any  other  Transaction       Document, or any event that but for notice or lapse of time or both would constitute an       Event of Default; and     26384869.3.BUSINESS -2-  

 

            (ix)  no change, occurrence, or development exists that, individually or in the        aggregate, could reasonably be expected to have a Material Adverse Effect.         (b)   Seller represents and warrants to Purchaser, as of the date of this Amendment, that  all representations and warranties made by it in Article 9 of the Repurchase Agreement are true  and correct (unless such representation or warranty expressly relates only to an earlier date in  which case Seller represents and warrants to Purchaser that such representation or warranty was  true and correct as of such earlier date);         (a)   Guarantor represents and warrants to Purchaser, as of the date of this Amendment,  that all representations and warranties made by it in the Guaranty are true and correct (unless such  representation  or  warranty  expressly  relates  only  to  an  earlier  date  in  which  case  Guarantor  represents and warrants to Purchaser that such representation or warranty was true and correct as  of such earlier date);                                    ARTICLE 4           REAFFIRMATION, RATIFICATION AND ACKNOWLEDGMENT         (a)   Seller  hereby  (i)  ratifies  and  reaffirms  all  of  its  payment  and performance  obligations, contingent  or  otherwise,  and  each  grant  of  security interests  and  liens in  favor  of  Purchaser,  under  each  Transaction  Document  to  which  it  is  a  party and (ii) agrees and  acknowledges  that  such  ratification  and  reaffirmation  is  not  a condition  to  the  continued  effectiveness of such Transaction Documents.         (b)   Guarantor hereby reaffirms the terms and conditions of the Guaranty.         (c)   Each of Seller and Guarantor hereby (i) agree that neither such ratification and  reaffirmation  above,  as  applicable,  nor  Purchaser’s  solicitation  of  such  ratification  and  reaffirmation, constitutes a course of dealing giving rise to any obligation or condition requiring a  similar or any other ratification or reaffirmation from such Seller and/or Guarantor with respect to  any subsequent modifications to the Repurchase Agreement, the Fee Letter or the other Transaction  Documents and (ii) agree and acknowledge that each of the Repurchase Agreement, the Fee Letter,  the Guaranty and the other Transaction Documents shall each remain in full force and effect and  are each hereby ratified and confirmed.                                     ARTICLE 5                                EFFECTIVENESS         This Amendment shall become effective as of the date this Amendment is executed and  delivered  by  a  duly  authorized  officer  of  each  of  Seller,  Guarantor  and Purchaser, along  with  (a) delivery to Purchaser of such other documents as Purchaser reasonably requested prior to the  date  hereof,  including  without  limitation,  an  opinion  of  outside  counsel  to  Seller  reasonably  acceptable to Purchaser as to corporate and enforceability matters and a bring down opinion with  respect to the Bankruptcy Code safe harbors opinion delivered to Purchaser on behalf of Seller and  (b) receipt by Purchaser of payment from Seller of the Third Amendment Additional Upfront Fee  (as defined in the Fee Letter) and an amount equal to the amount of actual costs and expenses,  including, without limitation, the reasonable fees and expenses of counsel to Purchaser, incurred  by Purchaser in connection with this Amendment and the transactions contemplated hereby.    26384869.3.BUSINESS -3-  

 

                                 ARTICLE 6                                GOVERNING LAW         THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS  OF THE STATE OF NEW YORK, AND THE OBLIGATIONS, RIGHTS, AND REMEDIES OF  THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH  LAWS WITHOUT REGARD TO THE CONFLICT OF LAWS DOCTRINE APPLIED IN SUCH  STATE (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS  LAW OF THE STATE OF NEW YORK).                                    ARTICLE 7                                MISCELLANEOUS         (a)   Except as expressly amended or modified hereby, the Repurchase Agreement and  the  other  Transaction  Documents  shall  each  be  and  shall  remain in  full  force  and  effect  in  accordance with their terms.          (b)   Each Seller agrees to pay or cause to be paid, as and when billed by Purchaser and  as a condition precedent to the effectiveness of this Amendment, all reasonable out-of-pocket costs  and  expenses  paid  or  incurred  by  Purchaser  in  connection  with  this  Amendment  and  the  transactions  contemplated  hereby,  including,  without  limitation,  reasonable  outside  counsel  attorneys’ fees and expenses, and documentation costs and charges.         (c)   This  Amendment  may  not  be  amended  or  otherwise  modified,  waived or  supplemented except as provided in the Transaction Documents.         (d)   This Amendment, the Repurchase Agreement and the other Transaction Documents  contain  the  entire  agreement  of  the  parties  hereto  and  thereto in  respect  of  the  transactions  contemplated hereby and thereby, and all prior agreements among or between such parties, whether  oral or written are superseded by the terms of this Amendment, the Repurchase Agreement and the  other Transaction Documents. This Amendment contains a final and complete integration of all  prior expressions by the parties with respect to the subject matter hereof and shall constitute the  entire agreement among the parties with respect to such subject matter, superseding all prior oral  or written understandings.         (e)   Wherever possible, each provision of this Amendment shall be interpreted in such  manner as to be effective and valid under applicable law, but if any provision of this Amendment  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 provision or the  remaining provisions of this Amendment.         (f)   Whenever in this Amendment any of the parties hereto is referred to, such reference  shall be deemed to include the legal representatives, and permitted successors and assigns of such  party.  All covenants, promises and agreements in this Amendment, by or on behalf of Seller and  Guarantor, shall inure to the benefit of the legal representatives, successors and permitted assigns  of Purchaser.    26384869.3.BUSINESS -4-  

 

       (g)   This Amendment may be executed in counterparts, each of which so executed shall   be deemed to be an original, but all of such counterparts shall together constitute but one and the   same instrument.  This Amendment shall be effective and binding as of the date hereof with respect   to each party hereto upon the execution and delivery by such party of its signature page of this   Amendment, without regard to whether the delivery of such signature page occurs before or after   any other party delivers its respective signature page.         (h)    The headings in this Amendment are for convenience of reference only and shall   not affect the interpretation or construction of this Amendment.          (i)   This Amendment is a Transaction Document executed pursuant to the Repurchase   Agreement and shall be construed, administered and applied in accordance with the terms and   provisions of the Repurchase Agreement.          (j)   Nothing contained herein shall affect or be construed to affect any lien, charge or   encumbrance created by any Transaction Document or the priority of any such lien, charge or   encumbrance over any other liens, charges or encumbrances.           (k)   Except  as  specifically  set  forth  in  this Amendment,  the  execution,  delivery  and   effectiveness of this Amendment shall not (i) limit, impair, constitute a waiver by, or otherwise   affect any right, power or remedy of Purchaser under the Repurchase Agreement or any other   Transaction Document, (ii) constitute a waiver of any provision in the Repurchase Agreement or   in any of the other Transaction Documents or of any Default or Event of Default that may have  occurred and be continuing or (iii) alter, modify, amend or in any way affect any of the terms,  conditions, obligations, covenants or agreements contained in the Repurchase Agreement or in any   of the other Transaction Document, all of which are ratified and affirmed in all respects and shall   continue in full force and effect.                               [SIGNATURES FOLLOW]    26384869.3.BUSINESS -5-  

 

                                                                    Exhibit 10.1                                                                                                                                          EXECUTION VERSION                                                                                       IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed  as of the date first above written.                                          SELLER:                                                                                  GP COMMERCIAL CB LLC, a Delaware                                         limited liability company                                                                                                                           By: /s/ Marcin Urbaszek                                             Name: Marcin Urbaszek                                            Title: Chief Financial Officer                                                           [SIGNATURES CONTINUED ON FOLLOWING PAGE]    26384869.3.BUSINESS  

 

                                       PURCHASER:                                                                                  CITIBANK, N.A.                                                                                                                           By: /s/ Richard B. Schlenger                                             Name: Richard B. Schlenger                                            Title: Authorized Signatory                                                           [SIGNATURES CONTINUED ON FOLLOWING PAGE]                                               26384869.3.BUSINESS  

 

                                       GUARANTOR:                                                                                  GRANITE POINT MORTGAGE TRUST,                                         INC., a Maryland corporation                                                                                                                           By: /s/ Marcin Urbaszek                                             Name: Marcin Urbaszek                                            Title: Chief Financial Officer             26384869.3.BUSINESSBlueprint

  Exhibit
4.1

 

THIS INSTRUMENT AND THE SECURITIES ISSUABLE UPON THE CONVERSION
HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED
FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR
UPON RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY
TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE
ACT.

 

SIMPLE AGREEMENT FOR FUTURE EQUITY

 

	

Investment Amount

 

	

Date of Issuance

	

US$_____________

	

______________

 

THIS SIMPLE AGREEMENT FOR FUTURE EQUITY (this “SAFE”) is issued by Freedom Internet Group, Inc.
a Commonwealth of Puerto Rico corporation (the
“Company”), to _______________________
(the “Holder”) in exchange for the Holder’s
payment of the investment amount set forth above (the
“Investment
Amount”).

 

This SAFE is one of a series (the “Series”) of simple agreements for future equity
(collectively, the “Series 1
SAFEs”) issued by the
Company to investors with identical terms and on the same form as
set forth herein (except that the holder, purchase price and date
of issuance may differ in each SAFE).

 

Pursuant to the definitions below and by way of example, if the
price per share of the Next Equity Financing is $5, the Conversion
Price would be $5 minus the Discount of 40% ($2 per share) making
the Conversion Price $3 per share. The Conversion Price will be
subject to a Valuation Cap of $15 million.

 

 

1.  Definitions.
Capitalized terms not otherwise defined in this SAFE will have the
meanings set forth in this Section 1.

 

    1.1  ”Common
Stock” means the
Company’s common stock, par value
US$0.01.

 

    1.2  ”Conversion
Price” means the price
per share of the Next Equity Financing minus the
Discount.

 

    1.3  ”Discount”
means 40%.

  

    1.4  ”Exchange
Act” means the Securities
Exchange Act of 1934, as amended.

 

    1.5  ”Next
Equity Financing” means
the next sale (or series of related sales) by the Company of its
Common Stock following the date of issuance of this SAFE, in one or
more offerings relying on Section 4(a)(2) of the Securities Act or
Regulation D thereunder for exemption from the registration
requirements of Section 5 of the Securities Act, or pursuant to an
effective registration statement filed under the Securities Act,
from which the Company receives gross proceeds of not less than
US$500,000.

 

    1.6  ”SAFEs”
mean any simple agreements for future equity (or other similar
agreements) which are issued by the Company for bona fide financing
purposes and which may convert into the Company’s capital
stock in accordance with its terms.

 

 

1

 

    1.7  ”Securities
Act” means the Securities
Act of 1933, as amended.

 

    1.8  ”Valuation
Cap” means
US$15,000,000.

 

2.  Conversion.
This SAFE will be convertible into Common Stock pursuant to the
following terms.

 

    2.1  Next
Equity Financing Conversion.
This SAFE will automatically convert into Common Stock upon the
closing of the Next Equity Financing subject to the Valuation Cap,
or in the event there is no Next Equity Financing before December
31, 2019 the Series 1 SAFEs will automatically convert into 80% of
the Common Stock. The number of Common Shares the Company issues
upon such conversion will equal the quotient (rounded down to the
nearest whole share) obtained by dividing the Investment Amount by
the applicable Conversion Price. At least five (5) days prior to
the closing of the Next Equity Financing, the Company will notify
the Holder in writing of the terms of the Common Stock that are
expected to be issued in such financing.

 

    2.2  Mechanics
of Conversion.

 

(a)  Financing
Agreements. The Holder
acknowledges that the conversion of this SAFE into Common Shares
may require the Holder’s execution of certain agreements
relating to the purchase and sale of the Common Shares, as well as
registration rights, rights of first refusal and co-sale, rights of
first offer and voting rights, if any, relating to such securities
(collectively, the “Financing
Agreements”). The Holder
agrees to execute all of the Financing Agreements in connection
with a Next Equity Financing.

 

(b)  Certificates.
As promptly as practicable after the conversion of this SAFE and
the issuance of the Conversion Shares, the Company (at its expense)
will issue and deliver a certificate or certificates evidencing the
Conversion Shares (if certificated) to the Holder. The Company will
not be required to issue or deliver the Conversion Shares until the
Holder has surrendered this SAFE to the Company (or provided an
instrument of cancellation or affidavit of
loss).

 

3.  No Rights as a
Stockholder. The Holder is not
entitled by virtue of holding this SAFE to be deemed a holder of
the Company’s capital stock for any purpose, nor will
anything contained in this SAFE be construed to confer on the
Holder, as such, any of the rights of a stockholder of the Company
or any right to vote for the election of directors or upon any
matter submitted to stockholders at any meeting thereof, or to give
or withhold consent to any corporate action or to receive notice of
meetings, or to receive subscription rights or otherwise until
Conversion Shares have been issued upon the terms described in this
SAFE.

  

4.  Representations and
Warranties of the Company. In
connection with the transactions contemplated by this SAFE, the
Company hereby represents and warrants to the Holder as
follows:

 

    4.1  Due
Organization; Qualification and Good Standing. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the
Commonwealth of Puerto Rico and has all requisite corporate power
and authority to carry on its business as now conducted. The
Company is duly qualified to transact business and is in good
standing in each jurisdiction in which the failure to so qualify or
to be in good standing would have a material adverse effect on the
Company.

 

    4.2  Authorization
and Enforceability. Except for
the authorization and issuance of the Conversion Shares, all
corporate action has been taken on the part of the Company and its
officers, directors and stockholders necessary for the
authorization, execution and delivery of this SAFE. Except as may
be limited by applicable bankruptcy, insolvency, reorganization or
similar laws relating to or affecting the enforcement of
creditors’ rights, the Company has taken all corporate action
required to make all of the obligations of the Company reflected in
the provisions of this SAFE valid and enforceable in accordance
with its terms.

  

 

2

 

 

5.  Representations and
Warranties of the Holder. In
connection with the transactions contemplated by this SAFE, the
Holder hereby represents and warrants to the Company as
follows:

 

    5.1  Authorization.
The Holder has full power and authority (and, if an individual, the
capacity) to enter into this SAFE and to perform all obligations
required to be performed by it hereunder. This SAFE, when executed
and delivered by the Holder, will constitute the Holder’s
valid and legally binding obligation, enforceable in accordance
with its terms, except (a) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance and
any other laws of general application affecting enforcement of
creditors’ rights generally, and (b) as limited by laws
relating to the availability of specific performance, injunctive
relief or other equitable remedies.

 

    5.2  Purchase
Entirely for Own Account. The
Holder acknowledges that this SAFE is made with the Holder in
reliance upon the Holder’s representation to the Company,
which the Holder hereby confirms by executing this SAFE, that this
SAFE, the Conversion Shares, and any Common Stock issuable upon
conversion of the Conversion Shares (collectively, the
“Securities”) will be acquired for investment for the
Holder’s own account, not as a nominee or agent (unless
otherwise specified on the Holder’s signature page hereto),
and not with a view to the resale or distribution of any part
thereof, and that the Holder has no present intention of selling,
granting any participation in, or otherwise distributing the same.
By executing this SAFE, the Holder further represents that the
Holder does not have any contract, undertaking, agreement or
arrangement with any person to sell, transfer or grant
participations to such person or to any third person, with respect
to the Securities. If other than an individual, the Holder also
represents it has not been organized solely for the purpose of
acquiring the Securities.

 

    5.3  Disclosure
of Information; Non-Reliance.
The Holder acknowledges that it has received all the information it
considers necessary or appropriate to enable it to make an informed
decision concerning an investment in the Securities. The Holder
further represents that it has had an opportunity to ask questions
and receive answers from the Company regarding the terms and
conditions of the offering of the Securities. The Holder confirms
that the Company has not given any guarantee or representation as
to the potential success, return, effect or benefit (either legal,
regulatory, tax, financial, accounting or otherwise) of an
investment in the Securities. In deciding to purchase the
Securities, the Holder is not relying on the advice or
recommendations of the Company and has made its own independent
decision that the investment in the Securities is suitable and
appropriate for the Holder. The Holder understands that no federal
or state agency has passed upon the merits or risks of an
investment in the Securities or made any finding or determination
concerning the fairness or advisability of this
investment.

 

    5.4  Investment
Experience. The Holder is an
investor in securities of companies in the development stage and
acknowledges that it is able to fend for itself, can bear the
economic risk of its investment and has such knowledge and
experience in financial or business matters that it is capable of
evaluating the merits and risks of the investment in the
Securities.

 

   5.5  Accredited
Investor. The Holder is an
“accredited investor” within the meaning of Rule 501 of
Regulation D promulgated under the Securities Act. The Holder
agrees to furnish any additional information requested by the
Company or any of its affiliates to assure compliance with
applicable U.S. federal and state securities laws in connection
with the purchase and sale of the Securities.

 

 

3

 

 

    5.6  Restricted
Securities. The Holder
understands that the Securities have not been, and will not be,
registered under the Securities Act or state securities laws, by
reason of specific exemptions from the registration provisions
thereof which depend upon, among other things, the bona fide nature
of the investment intent and the accuracy of the Holder’s
representations as expressed herein. The Holder understands that
the Securities are “restricted securities” under U.S.
federal and applicable state securities laws and that, pursuant to
these laws, the Holder must hold the Securities indefinitely unless they are registered
with the Securities and Exchange Commission
(”SEC”) and registered or qualified by state
authorities, or an exemption from such registration and
qualification requirements is available. The Holder acknowledges
that the Company has no obligation to register or qualify the
Securities for resale and further acknowledges that, if an
exemption from registration or qualification is available, it may
be conditioned on various requirements including, but not limited
to, the time and manner of sale, the holding period for the
Securities, and on requirements relating to the Company which are
outside of the Holder’s control, and which the Company is
under no obligation, and may not be able, to
satisfy.

 

    5.7  No
Public Market. The Holder
understands that no public market now exists for the Securities and
that the Company has made no assurances that a public market will
ever exist for the Securities.

 

    5.8  No
General Solicitation. The
Holder, and its officers, directors, employees, agents,
stockholders or partners have not either directly or indirectly,
including through a broker or finder solicited offers for or
offered or sold the Securities by means of any form of general
solicitation or general advertising within the meaning of Rule 502
of Regulation D under the Securities Act or in any manner involving
a public offering within the meaning of Section 4(a)(2) of the
Securities Act. The Holder acknowledges that neither the Company
nor any other person offered to sell the Securities to it by means
of any form of general solicitation or advertising within the
meaning of Rule 502 of Regulation D under the Securities Act or in
any manner involving a public offering within the meaning of
Section 4(a)(2) of the Securities Act.]

 

    5.9  Residence.
If the Holder is an individual, then the Holder resides in the
state or province identified in the address shown on the
Holder’s signature page hereto. If the Holder is a
partnership, corporation, limited liability company or other
entity, then the Holder’s principal place of business is
located in the state or province identified in the address shown on
the Holder’s signature page hereto.

 

    5.10  Foreign
Investors. If the Holder is not
a United States person (as defined by Section 7701(a)(30) of
the Internal Revenue Code of 1986, as amended), the Holder hereby
represents that it has satisfied itself as to the full observance
of the laws of its jurisdiction in connection with any invitation
to subscribe for the Securities, including (a) the legal
requirements within its jurisdiction for the purchase of the
Securities; (b) any foreign exchange restrictions applicable to
such purchase; (c) any governmental or other consents that may need
to be obtained; and (d) the income tax and other tax consequences,
if any, that may be relevant to the purchase, holding, conversion,
redemption, sale, or transfer of the Securities. The Holder’s
subscription and payment for and continued beneficial ownership of
the Securities will not violate any applicable securities or other
laws of the Holder’s jurisdiction. The Holder acknowledges
that the Company has taken no action in foreign jurisdictions with
respect to the Securities.

 

6.  Miscellaneous.

 

    6.1  Successors
and Assigns. Except as
otherwise provided herein, the terms and conditions of this SAFE
will inure to the benefit of, and be binding upon, the respective
successors and assigns of the parties. This SAFE is for the sole
benefit of the parties hereto and their respective successors and
permitted assigns, and nothing herein, express or implied, is
intended to or will confer upon any other person or entity any
legal or equitable right, benefit or remedy of any nature
whatsoever under or by reason of this SAFE.

 

 

4

 

 

    6.2  Choice
of Law. This SAFE and all
matters arising out of or relating to this Note, whether sounding
in contract, tort, or statute will be governed by and construed in
accordance with the internal laws of the Commonwealth of Puerto
Rico without giving effect to the conflict of laws provisions
thereof to the extent such principles or rules would require or
permit the application of the laws of any jurisdiction other than
those of the Commonwealth of Puerto Rico.

 

    6.3  Counterparts.
This SAFE may be executed in counterparts, each of which will be
deemed an original, but all of which together will be deemed to be
one and the same agreement. Counterparts may be delivered via
facsimile, electronic mail (including PDF or any electronic
signature complying with the U.S. federal ESIGN Act of 2000,
e.g., www.docusign.com) or other transmission method,
and any counterpart so delivered will be deemed to have been duly
and validly delivered and be valid and effective for all
purposes.

 

    6.4  Titles
and Subtitles. The titles and
subtitles used in this SAFE are included for convenience only and
are not to be considered in construing or interpreting this
SAFE.

 

    6.5  Notices.
All notices and other communications given or made pursuant hereto
will be in writing and will be deemed effectively given: (a) upon
personal delivery to the party to be notified; (b) when sent by
email or confirmed facsimile; (c) five (5) days after having been
sent by registered or certified mail, return receipt requested,
postage prepaid; or (d) one (1) day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with
written verification of receipt. All communications will be sent to
the respective parties at the addresses shown on the signature
pages hereto (or to such email address, facsimile number or other
address as subsequently modified by written notice given in
accordance with this Section).

 

    6.6  No
Finder’s Fee. Each party
represents that it neither is nor will be obligated to pay any
finder’s fee, broker’s fee or commission in connection
with the transactions contemplated by this SAFE. The Holder agrees
to indemnify and to hold the Company harmless from any liability
for any commission or compensation in the nature of a
finder’s or broker’s fee arising out of the
transactions contemplated by this SAFE (and the costs and expenses
of defending against such liability or asserted liability) for
which the Holder or any of its officers, employees or
representatives is responsible. The Company agrees to indemnify and
hold the Holder harmless from any liability for any commission or
compensation in the nature of a finder’s or broker’s
fee arising out of the transactions contemplated by this SAFE (and
the costs and expenses of defending against such liability or
asserted liability) for which the Company or any of its officers,
employees or representatives is responsible.

 

    6.7  Expenses.
Each party will pay all costs and expenses that it incurs with
respect to the negotiation, execution, delivery and performance of
this SAFE.

 

    6.8  Attorneys’
Fees. If any action at law or
in equity is necessary to enforce or interpret the terms of this
SAFE, the prevailing party will be entitled to reasonable
attorneys’ fees, costs and necessary disbursements in
addition to any other relief to which such party may be
entitled.

 

    6.9  Entire
Agreement; Amendments and Waivers. This SAFE constitutes the full and entire
understanding and agreement between the parties with regard to the
subject hereof. Any term of this SAFE may be amended and the
observance of any term may be waived (either generally or in a
particular instance and either retroactively or prospectively) with
the written consent of the Company and the Holder. Any waiver or
amendment effected in accordance with this Section will be binding
upon each future holder of this SAFE and the Company. The
Company’s agreements with each of the holders of the Series 1
SAFEs are separate agreements, and the sales of the SAFEs to each
of the holders thereof are separate
sales. 

 

 

5

 

 

    6.10  Severability.
If one or more provisions of this SAFE are held to be unenforceable
under applicable law, such provisions will be excluded from this
SAFE and the balance of the SAFE will be interpreted as if such
provisions were so excluded and this SAFE will be enforceable in
accordance with its terms.

 

    6.11  Transfer
Restrictions.

  

(a)

Disposition.
the Holder agrees not to make any disposition of all or any portion
of the Securities unless and until:

 

(i)  there
is then in effect a registration statement under the Securities Act
covering such proposed disposition, and such disposition is made in
connection with such registration statement; or

 

(ii)  the
Holder has (A) notified the Company of the proposed disposition;
(B) furnished the Company with a detailed statement of the
circumstances surrounding the proposed disposition; and (C) if
requested by the Company, furnished the Company with an opinion of
counsel reasonably satisfactory to the Company that such
disposition will not require registration under the Securities
Act.

 

 (b)  Legends.
The Holder understands and acknowledges that the Securities may
bear the following legend:

 

THIS
INSTRUMENT AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”). THEY MAY NOT BE SOLD, OFFERED FOR
SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR
UPON RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL SATISFACTORY
TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT OR
UNLESS SOLD PURSUANT TO RULE 144 UNDER THE ACT.

 

    6.12  Exculpation
among SAFE Holders. The Holder
acknowledges that it is not relying upon any person, firm,
corporation or stockholder, other than the Company and its officers
and directors in their capacities as such, in making its investment
or decision to invest in the Company. The Holder agrees that no
other holder of SAFEs, nor the controlling persons, officers,
directors, partners, agents, stockholders or employees of any other
holder of SAFEs, will be liable for any action heretofore or
hereafter taken or not taken by any of them in connection with the
purchase and sale of the Securities.]

 

    6.13  Acknowledgment.
For the avoidance of doubt, it is acknowledged that the Holder will
be entitled to the benefit of all adjustments in the number of
shares of the Company’s capital stock as a result of any
splits, recapitalizations, combinations or other similar
transactions affecting the Company’s capital stock underlying
the Conversion Shares that occur prior to the conversion of this
SAFE.

 

    6.14 Further
Assurances. From time to time,
the parties will execute and deliver such additional documents and
will provide such additional information as may reasonably be
required to carry out the terms of this SAFE and any agreements
executed in connection herewith.

 

    6.15  Officers
and Directors not Liable. In no
event will any officer or director of the Company be liable for any
amounts due and payable pursuant to this SAFE.

 

 

6

 

 

    6.16  Waiver
of Jury Trial. EACH PARTY
HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF
ACTION BASED UPON OR ARISING OUT OF THIS SAFE, THE SECURITIES OR
THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS
INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE
FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS
TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT
CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER
COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY
DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL
NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER
REPRESENTS AND WARRANTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER
WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION
WITH LEGAL COUNSEL.

 

IN
WITNESS WHEREOF, the undersigned have caused this Safe to be duly
executed and delivered.

 

	
 

	

Freedom
Internet Group, Inc.

 

 

By________________________

Name:

Title:

Address:

Email
Address:

 

	
 

	
 

Agreed to and accepted:

	
 

	
 

	

If an individual:

 

	
 

	

___________________________

Name:

Address:

 

	
 

	

Email
Address:

 

 

	
 

	

If an entity:

 

	
 

	

___________________________

 

 

By_________________________

Name:

Title:

Address:

Email
Address:

 

	
 

 

 

7

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