Document:

Exhibit
10.2

 

REGISTRATION
RIGHTS AGREEMENT

 

This
REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of January __, 2022 by and among Advaxis, Inc.,
a Delaware corporation (the “Company”), and the “Investors” named in that certain Securities Purchase Agreement,
dated as of the date hereof, by and among the Company and the Investors (the “Purchase Agreement”). Capitalized terms used
herein have the respective meanings ascribed thereto in the Purchase Agreement unless otherwise defined herein.

 

The
parties hereby agree as follows:

 

1.
Certain Definitions.

 

As
used in this Agreement, the following terms shall have the following meanings:

 

“Closing
Date” means the date of the closing of the transactions contemplated under the Purchase Agreement.

 

“Investors”
means the Investors identified in the Purchase Agreement and any Affiliate or permitted transferee of any Investor who is a subsequent
holder of Registrable Securities.

 

“Prospectus”
means (i) the prospectus included in any Registration Statement, as amended or supplemented by any prospectus supplement, with respect
to the terms of the offering of any portion of the Registrable Securities covered by such Registration Statement and by all other amendments
and supplements to the prospectus, including post-effective amendments and all material incorporated by reference in such prospectus,
and (ii) any “free writing prospectus” as defined in Rule 405 under the 1933 Act.

 

“Register,”
“registered” and “registration” refer to a registration made by preparing and filing a Registration
Statement or similar document in compliance with the 1933 Act, and the declaration or ordering of effectiveness of such Registration
Statement or document.

 

“Registrable
Securities” means (i) the Shares and (ii) any other securities issued or issuable with respect to or in exchange for Registrable
Securities, whether by merger, charter amendment or otherwise; provided, that, a security shall cease to be a Registrable Security upon
the first to occur of (A) a Registration Statement with respect to the sale of such Registrable Securities being declared effective by
the SEC under the 1933 Act and such Registrable Securities having been disposed of by the holder thereof in accordance with such effective
Registration Statement, (B) such Registrable Securities having been previously sold in accordance with Rule 144 (or another exemption
from the registration requirements of the 1933 Act), and (C) such securities becoming eligible for resale without volume or manner-of-sale
restrictions and without current public information requirements pursuant to Rule 144 as set forth in a written opinion letter to such
effect, addressed, delivered and acceptable to the Transfer Agent and the affected holders (assuming that such securities and any securities
issuable upon exercise, conversion or exchange of which, or as a dividend upon which, such securities were issued or are issuable, were
at no time held by any Affiliate of the Company), as reasonably determined by the Company, upon the advice of counsel to the Company
and the Transfer Agent has issued certificates or book entries for such Registrable Securities to the holder thereof, or as such holder
may direct, without any restrictive legend.

 

    	 

    	 

    

 

“Registration
Statement” means any registration statement of the Company under the 1933 Act that covers the resale of any of the Registrable
Securities pursuant to the provisions of this Agreement, amendments and supplements to such Registration Statement, including post-effective
amendments, all exhibits and all material incorporated by reference in such Registration Statement.

 

“Required
Investors” means the Investors holding a majority of the Registrable Securities outstanding from time to time.

 

“SEC”
means the U.S. Securities and Exchange Commission.

 

“SEC
Guidance” means (i) any publicly-available written or oral guidance of the SEC staff, or any comments, requirements or requests
of the SEC staff and (ii) the 1933 Act.

 

“Shares”
means the shares of the Company’s Common Stock, par value $0.001 per share, that may be issued upon conversion of shares of the
Company’s Series D Convertible Redeemable Preferred Stock, par value $0.001 per share, purchased by the Investors pursuant to the
Purchase Agreement.

 

2.
Registration.

 

(a)
Registration Statements.

 

(i)
No later than sixty (60) calendar days after the first date on which Shares are issued upon the conversion of shares of Series D Convertible
Redeemable Preferred Stock (the “Filing Deadline”), the Company shall prepare and file with the SEC one Registration
Statement covering the resale of all of the Registrable Securities which, for the avoidance of doubt, may also register the sale or issuance
of primary securities. Subject to any SEC comments, such Registration Statement shall include the plan of distribution, substantially
in the form and substance set forth in Exhibit A hereto. Such Registration Statement also shall cover, to the extent allowable
under the 1933 Act and the rules promulgated thereunder (including Rule 416), such indeterminate number of additional shares of Common
Stock resulting from stock splits, stock dividends or similar transactions with respect to the Registrable Securities. Such Registration
Statement (and each amendment or supplement thereto, and each request for acceleration of effectiveness thereof) shall be provided in
accordance with Section 3(c) to the Investors prior to its filing or other submission. If a Registration Statement covering the Registrable
Securities is not filed with the SEC on or prior to the 10th Business Day following the Filing Deadline, the Company will make pro rata
payments to each Investor, as liquidated damages and not as a penalty, in an amount equal to 1% of the aggregate amount paid pursuant
to the Purchase Agreement by such Investor for such Registrable Securities then held by such Investor for each 30-day period or pro rata
for any portion thereof following the Filing Deadline for which no Registration Statement is filed with respect to the Registrable Securities.
Such payments shall constitute the Investors’ exclusive monetary remedy for such events, but shall not affect the right of the
Investors to seek injunctive relief. Such payments shall be made to each Investor in cash no later than five (5) Business Days after
the end of each 30-day period (the “Payment Date”). Interest shall accrue at the rate of 1% per month on any such
liquidated damages payments that shall not be paid by the Payment Date until such amount is paid in full.

 

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(ii)
The Company shall take reasonable efforts to register the Registrable Securities on Form S-3 if such form is available for use by the
Company, provided that if at such time the Registration Statement is on Form S-1, the Company shall maintain the effectiveness of the
Registration Statement then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has
been declared effective by the SEC.

 

(b)
Expenses. The Company will pay all expenses associated with any Registration Statement, including filing and printing fees, the
Company’s counsel and accounting fees and expenses, costs associated with clearing the Registrable Securities for sale under applicable
state securities laws, listing fees, fees and expenses of one counsel to the Investors and the Investors’ reasonable expenses in
connection with the registration, but excluding discounts, commissions and fees of underwriters, selling brokers, dealer managers or
similar securities industry professionals with respect to the Registrable Securities being sold. Except as provided in Section 6 hereof,
the Company shall not be responsible for legal fees incurred by holders of Registrable Securities in connection with the performance
of its rights and obligations under the Transaction Documents.

 

(c)
Effectiveness.

 

(i)
The Company shall use commercially reasonable efforts to have the Registration Statements declared effective as soon as reasonably practicable
after the filing thereof. The Company shall notify the Investors by facsimile or e-mail as promptly as practicable, and in any event,
within twenty-four (24) hours, after any Registration Statement is declared effective and shall simultaneously provide the Investors
with access to a copy of any related Prospectus to be used in connection with the sale or other disposition of the securities covered
thereby. Subject to Section 2(d), if (A) a Registration Statement covering the Registrable Securities is not declared effective by the
SEC prior to the earlier of (i) five (5) Business Days after the SEC informs the Company that no review of such Registration Statement
will be made or that the SEC has no further comments on such Registration Statement and (ii) the 90th day after the first
date on which Shares are issued upon the conversion of shares of Series D Convertible Redeemable Preferred Stock (the “Effectiveness
Deadline”), or (B) after a Registration Statement has been declared effective by the SEC, sales cannot be made pursuant to
such Registration Statement for any reason (including without limitation by reason of a stop order, or the Company’s failure to
update such Registration Statement), but excluding any Allowed Delay (as defined below) or, if the Registration Statement is on Form
S-1, for a period of twenty (20) days following the date on which the Company files a post-effective amendment to incorporate the Company’s
Annual Report on Form 10-K (a “Maintenance Failure”), then the Company will make pro rata payments to each Investor
then holding Registrable Securities, as liquidated damages and not as a penalty, in an amount equal to 1% of the aggregate amount paid
pursuant to the Purchase Agreement by such Investor for such Registrable Securities then held by such Investor for each 30-day period
or pro rata for any portion thereof following the date by which such Registration Statement should have been effective (the “Blackout
Period”). Such payments shall constitute the Investors’ exclusive monetary remedy for such events, but shall not affect
the right of the Investors to seek injunctive relief. The amounts payable as liquidated damages pursuant to this paragraph shall be paid
no later than five (5) Business Days after each such 30-day period following the commencement of the Blackout Period until the termination
of the Blackout Period (the “Blackout Period Payment Date”). Such payments shall be made to each Investor in cash.
Interest shall accrue at the rate of 1% per month on any such liquidated damages payments that shall not be paid by the Blackout Payment
Date until such amount is paid in full.

 

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(ii)
Notwithstanding anything to the contrary contained herein, (i) the Company shall not be required to file a Registration Statement (or
any amendment thereto) or, if a Registration Statement has been filed but not declared effective by the SEC, request effectiveness of
such Registration Statement, for a period of up to forty-five (45) days (or, in the case of clause (D) below, sixty (60) days), if (A)
the Company determines in good faith that a postponement is in the best interest of the Company and its stockholders generally due to
a pending transaction involving the Company (including a pending securities offering by the Company, or any proposed financing, acquisition,
merger, tender offer, business combination, corporate reorganization, consolidation or other significant transaction involving the Company),
(B) the Company determines such registration would render the Company unable to comply with applicable securities laws, (C) the Company
determines such registration would require disclosure of material information that the Company has a bona fide business purpose for preserving
as confidential, or (D) audited financial statements as of a date other than the fiscal year end of the Company would be required to
be prepared; and (ii) the Company may, upon written notice to any holder of Registrable Securities included in a Registration Statement,
suspend the use of any Registration Statement, including any Prospectus that forms a part of a Registration Statement, if the Company
(X) determines that it would be required to make disclosure of material information in the Registration Statement that the Company has
a bona fide business purpose for preserving as confidential, (Y) the Company determines it must amend or supplement the Registration
Statement or the related Prospectus so that such Registration Statement or Prospectus shall not include an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the case of the Prospectus
in light of the circumstances under which they were made, not misleading or (Z) the Company has experienced or is experiencing some other
material non-public event, including a pending transaction involving the Company, the disclosure of which at such time, in the good faith
judgment of the Company, would adversely affect the Company; provided, however, in no event shall holders of Registrable Securities be
suspended from selling Registrable Securities pursuant to the Registration Statement for a period that exceeds 45 consecutive Trading
Days or 60 total Trading Days in any 180-day period (any such suspension contemplated by this Section 2(c)(ii), an “Allowed Delay”).
Upon disclosure of such information or the termination of the condition described above, the Company shall provide prompt notice to holders
whose Registrable Securities are included in the Registration Statement, and shall promptly terminate any suspension of sales it has
put into effect and shall take such other reasonable actions to permit registered sales of Registrable Securities as contemplated hereby.

 

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(d)
Rule 415; Cutback. If at any time the SEC takes the position that the offering of some or all of the Registrable Securities in
a Registration Statement is not eligible to be made on a delayed or continuous basis under the provisions of Rule 415 under the 1933
Act (provided, however, the Company shall be obligated to use commercially reasonable efforts to advocate with the SEC for the registration
of all of the Registrable Securities in accordance with the SEC Guidance, including without limitation, Compliance and Disclosure Interpretation
612.09) or requires any Investor to be named as an “underwriter,” the Company shall (i) promptly notify each holder of Registrable
Securities thereof and (ii) make commercially reasonable efforts to persuade the SEC that the offering contemplated by such Registration
Statement is a valid secondary offering and not an offering “by or on behalf of the issuer” as defined in Rule 415 and that
none of the Investors is an “underwriter.” The Investors shall have the right to select one legal counsel designated by the
holders of a majority of the Registrable Securities, at such Investors’ expense, to review and oversee any registration or matters
pursuant to this Section 2(d), including participation in any meetings or discussions with the SEC regarding the SEC’s position
and to comment on any written submission made to the SEC with respect thereto. No such written submission with respect to this matter
shall be made to the SEC to which the Investors’ counsel reasonably objects. In the event that, despite the Company’s commercially
reasonable efforts and compliance with the terms of this Section 2(d), the SEC refuses to alter its position, the Company shall (i) remove
from such Registration Statement such portion of the Registrable Securities (the “Cut Back Shares”) and/or (ii) agree
to such restrictions and limitations on the registration and resale of the Registrable Securities as the SEC may require to assure the
Company’s compliance with the requirements of Rule 415 (collectively, the “SEC Restrictions”). Any cut-back
imposed on the Investors pursuant to this Section 2(d) shall be allocated among the Investors on a pro rata basis and shall be applied
first to any of the Registrable Securities of such Investor as such Investor shall designate, unless the SEC Restrictions otherwise require
or provide or the Investors otherwise agree. No liquidated damages shall accrue as to any Cut Back Shares until such date as the Company
is able to effect the registration of such Cut Back Shares in accordance with any SEC Restrictions applicable to such Cut Back Shares
(such date, the “Restriction Termination Date”). In furtherance of the foregoing, each Investor shall provide the
Company with prompt written notice of its sale of substantially all of the Registrable Securities under such Registration Statement such
that the Company will be able to file one or more additional Registration Statements covering the Cut Back Shares. From and after the
Restriction Termination Date applicable to any Cut Back Shares, all of the provisions of this Section 2 (including the Company’s
obligations with respect to the filing of a Registration Statement and its obligations to use reasonable efforts to have such Registration
Statement declared effective within the time periods set forth herein and the liquidated damages provisions relating thereto) shall again
be applicable to such Cut Back Shares; provided, however, that (i) the Filing Deadline for such Registration Statement including such
Cut Back Shares shall be ten (10) Business Days after such Restriction Termination Date, and (ii) the date by which the Company is required
to obtain effectiveness with respect to such Cut Back Shares shall be the 60th day immediately after the Restriction Termination Date
(or the 120th day if the SEC reviews such Registration Statement).

 

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(e)
Other Limitations. Notwithstanding any other provision herein or in the Purchase Agreement, (i) the Filing Deadline and each Effectiveness
Deadline for a Registration Statement shall be extended and any Maintenance Failure shall be automatically waived by no action of the
Investors, in each case, without default by or liquidated damages payable by the Company hereunder in the event that the Company’s
failure to make such filing or obtain such effectiveness or a Maintenance Failure results from the failure of an Investor to timely provide
the Company with information requested by the Company and necessary to complete a Registration Statement in accordance with the requirements
of the 1933 Act (in which case any such deadline would be extended, and a Maintenance Failure waived, with respect to all Registrable
Securities until such time as the Investor provides such requested information) and (ii) in no event shall the aggregate amount of liquidated
damages (or interest thereon) paid under this Agreement exceed, in the aggregate, 10% of the aggregate purchase price of the Shares.

 

3.
Company Obligations. The Company will use commercially reasonable efforts to effect the registration of the Registrable Securities
in accordance with the terms hereof, and pursuant thereto the Company will, as expeditiously as possible:

 

(a)
use commercially reasonable efforts to cause such Registration Statement to become effective and to remain continuously effective until
such time as there are no longer Registrable Securities held by the Investors (the “Effectiveness Period”) and advise
the Investors promptly in writing when the Effectiveness Period has expired;

 

(b)
prepare and file with the SEC such amendments and post-effective amendments to such Registration Statement and the related Prospectus
as may be necessary to keep such Registration Statement effective for the Effectiveness Period and to comply with the provisions of the
1933 Act and the 1934 Act with respect to the distribution of all of the Registrable Securities covered thereby;

 

(c)
provide via email to the Investors who have supplied the Company with email addresses each Registration Statement and all amendments
and supplements thereto not less than three (3) Trading Days prior to their filing with the SEC and reflect in each such document when
so filed with the SEC such comments regarding the Investors and the plan of distribution as the Investors may reasonably and promptly
propose no later than two (2) Trading Days after the Investors have been so furnished with copies of such documents as aforesaid;

 

(d)
furnish to each Investor whose Registrable Securities are included in any Registration Statement (i) promptly after the same is prepared
and filed with the SEC, if requested by the Investor, one (1) copy of any Registration Statement and any amendment thereto, each preliminary
prospectus and Prospectus and each amendment or supplement thereto, and each letter written by or on behalf of the Company to the SEC
or the staff of the SEC, and each item of correspondence from the SEC or the staff of the SEC, in each case relating to such Registration
Statement (other than any portion of any thereof which contains information for which the Company has sought confidential treatment),
and (ii) such number of copies of a Prospectus, including a preliminary prospectus, and all amendments and supplements thereto and such
other documents as each Investor may reasonably request in order to facilitate the disposition of the Registrable Securities owned by
such Investor;

 

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(e)
use commercially reasonable efforts to (i) prevent the issuance of any stop order or other suspension of effectiveness and, (ii) if such
order is issued, obtain the withdrawal of any such order at the earliest possible moment;

 

(f)
prior to any public offering of Registrable Securities, use commercially reasonable efforts to register or qualify or cooperate with
the Investors and their counsel in connection with the registration or qualification of such Registrable Securities for the offer and
sale under the securities or blue sky laws of such jurisdictions requested by the Investors and do any and all other commercially reasonable
acts or things necessary or advisable to enable the distribution in such jurisdictions of the Registrable Securities covered by the Registration
Statement; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (i) qualify
to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(f), (ii) subject itself
to general taxation in any jurisdiction where it would not otherwise be so subject but for this Section 3(f), or (iii) file a general
consent to service of process in any such jurisdiction;

 

(g)
use commercially reasonable efforts to cause all Registrable Securities covered by a Registration Statement to be listed on each securities
exchange, interdealer quotation system or other market on which similar securities issued by the Company are then listed;

 

(h)
promptly notify the Investors, at any time prior to the end of the Effectiveness Period, upon discovery that, or upon the happening of
any event as a result of which, the Prospectus includes an untrue statement of a material fact or omits to state any material fact required
to be stated therein or necessary to make the statements therein not misleading in light of the circumstances then existing, and promptly
prepare, file with the SEC and furnish to such holder a supplement to or an amendment of such Prospectus as may be necessary so that
such Prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in light of the circumstances then existing;

 

(i)
otherwise use reasonable efforts to comply with all applicable rules and regulations of the SEC under the 1933 Act and the 1934 Act,
including, without limitation, Rule 172 under the 1933 Act, file any final Prospectus, including any supplement or amendment thereof,
with the SEC pursuant to Rule 424 under the 1933 Act, promptly inform the Investors in writing if, at any time during the Effectiveness
Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof, the Investors are required to deliver
a Prospectus in connection with any disposition of Registrable Securities and take such other actions as may be reasonably necessary
to facilitate the registration of the Registrable Securities hereunder; and

 

(j)
with a view to making available to the Investors the benefits of Rule 144 (or its successor rule) and any other rule or regulation of
the SEC that may at any time permit the Investors to sell Shares to the public without registration, the Company covenants and agrees
to: (i) make and keep public information available, as those terms are understood and defined in Rule 144, until the earlier of (A) six
months after such date as all of the Registrable Securities may be sold without restriction by the holders thereof pursuant to Rule 144
or any other rule of similar effect or (B) such date as there are no longer Registrable Securities; (ii) file with the SEC in a timely
manner all reports and other documents required of the Company under the 1934 Act; and (iii) furnish electronically to each Investor
upon request, as long as such Investor owns any Registrable Securities, (A) a written statement by the Company that it has complied with
the reporting requirements of the 1934 Act, (B) a copy of or electronic access to the Company’s most recent Annual Report on Form
10-K or Quarterly Report on Form 10-Q, and (C) such other information as may be reasonably requested in order to avail such Investor
of any rule or regulation of the SEC that permits the selling of any such Registrable Securities without registration.

 

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4.
Due Diligence Review; Information. The Company shall, upon reasonable prior notice, make available, during normal business hours,
for inspection and review by the Investors, advisors to and representatives of the Investors (who may or may not be affiliated with the
Investors and who are reasonably acceptable to the Company) (collectively, the “Inspectors”), all pertinent financial
and other records, and all other corporate documents and properties of the Company (collectively, the “Records”) as
may be reasonably necessary for the purpose of such review, and cause the Company’s officers, directors and employees, within a
reasonable time period, to supply all such information reasonably requested by the Inspectors (including, without limitation, in response
to all questions and other inquiries reasonably made or submitted by any of them), prior to and from time to time after the filing and
effectiveness of such Registration Statement for the sole purpose of enabling such Investor and its accountants and attorneys to conduct
initial and ongoing due diligence with respect to the Company and the accuracy of such Registration Statement; provided, however,
that each Inspector shall agree to hold in strict confidence and shall not make any disclosure (except to such Investor) or use of any
Record or other information which the Company determines in good faith to be confidential, and of which determination the Inspectors
are so notified, unless (a) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in any Registration
Statement or is otherwise required under the 1933 Act, (b) the release of such Records is ordered pursuant to a final, non-appealable
subpoena or order from a court or government body of competent jurisdiction, or (c) the information in such Records has been made generally
available to the public other than by disclosure in violation of this or any other Transaction Document. Each Investor agrees that it
shall, upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through
other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure
of, or to obtain a protective order for, the Records deemed confidential. Nothing herein (or in any other confidentiality agreement between
the Company and any Investor) shall be deemed to limit the Investors’ ability to sell Registrable Securities in a manner which
is otherwise consistent with applicable laws and regulations.

 

Notwithstanding
the foregoing, the Company shall not disclose material nonpublic information to the Investors, or to advisors to or representatives of
the Investors, unless prior to disclosure of such information the Company identifies such information as being material nonpublic information
and provides the Investors, such advisors and representatives with the opportunity to accept or refuse to accept such material nonpublic
information for review and any Investor wishing to obtain such information enters into an appropriate confidentiality agreement with
the Company with respect thereto.

 

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5.
Obligations of the Investors.

 

(a)
Each Investor shall execute and deliver a Selling Stockholder Questionnaire, in the form set forth as Exhibit B hereto, no later
than fifteen (15) days after the Closing Date. Each Investor shall additionally furnish in writing to the Company such other information
regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by
it, as shall be reasonably required to effect the registration of such Registrable Securities and shall execute such documents in connection
with such registration as the Company may reasonably request. At least five (5) Business Days prior to the first anticipated filing date
of any Registration Statement, the Company shall notify each Investor of the additional information the Company requires from such Investor
if such Investor elects to have any of the Registrable Securities included in such Registration Statement (the “Registration
Information Notice”). An Investor shall provide such information to the Company no later than two (2) Business Days following
receipt of a Registration Information Notice if such Investor elects to have any of the Registrable Securities included in such Registration
Statement. It is agreed and understood that it shall be a condition precedent to the obligations of the Company to complete the registration
pursuant to this Agreement with respect to the Registrable Securities of a particular Investor that (i) such Investor furnish to the
Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable
Securities held by it as shall be reasonably required to effect the effectiveness of the registration of such Registrable Securities,
and (ii) the Investor execute such documents in connection with such registration as the Company may reasonably request, including, without
limitation, a waiver of its registration rights hereunder to the extent an Investor elects not to have any of its Registrable Securities
included in a Registration Statement.

 

(b)
Each Investor, by its acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company
in connection with the preparation and filing of a Registration Statement hereunder, unless such Investor has notified the Company in
writing of its election to exclude all of its Registrable Securities from such Registration Statement.

 

(c)
Each Investor agrees that, upon receipt of any notice from the Company of either (i) the commencement of an Allowed Delay pursuant to
Section 2(c)(ii) or (ii) the happening of an event pursuant to Section 3(h) hereof, such Investor will immediately discontinue disposition
of Registrable Securities pursuant to any Registration Statement covering such Registrable Securities, until the Investor is advised
by the Company that such dispositions may again be made.

 

(d)
Each Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to it
or an exemption therefrom in connection with sales of Registrable Securities pursuant to any Registration Statement.

 

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6.
Indemnification.

 

(a)
Indemnification by the Company. The Company will indemnify and hold harmless each Investor and its officers, directors, members,
managers, partners, trustees, employees and agents and other representatives, successors and assigns, and each other person, if any,
who controls such Investor within the meaning of the 1933 Act, against any losses, claims, damages or liabilities, joint or several,
to which they may become subject under the 1933 Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement or omission or alleged omission of
any material fact contained in any Registration Statement, any preliminary Prospectus or final Prospectus, or any amendment or supplement
thereof; provided, however, that the Company will not be liable in any such case if and to the extent that any such loss, claim, damage
or liability arises out of or is based upon (i) an untrue statement or alleged untrue statement or omission or alleged omission so made
in conformity with information furnished by such Investor or any such controlling person in writing specifically for use in such Registration
Statement or Prospectus, (ii) the use by an Investor of an outdated or defective Prospectus after the Company has notified such Investor
in writing that such Prospectus is outdated or defective or (iii) an Investor’s failure to send or give a copy of the Prospectus
or supplement (as then amended or supplemented), if required (and not exempted) to the Persons asserting an untrue statement or omission
or alleged untrue statement or omission at or prior to the written confirmation of the sale of Registrable Securities.

 

(b)
Indemnification by the Investors. Each Investor agrees, severally but not jointly, to indemnify and hold harmless, to the fullest
extent permitted by law, the Company, its directors, officers, employees, stockholders and each person who controls the Company (within
the meaning of the 1933 Act) against any losses, claims, damages, liabilities and expense (including reasonable attorney fees) resulting
from any untrue statement of a material fact or any omission of a material fact required to be stated in any Registration Statement or
Prospectus or preliminary Prospectus or amendment or supplement thereto or necessary to make the statements therein not misleading, to
the extent, but only to the extent, that such untrue statement or omission is contained in any information regarding such Investor and
furnished in writing by such Investor to the Company specifically for inclusion in such Registration Statement or Prospectus or amendment
or supplement thereto. In no event shall the liability of an Investor be greater than the dollar amount of the proceeds (net of all expenses
paid by such Investor in connection with any claim relating to this Section 6 and the amount of any damages such Investor has otherwise
been required to pay by reason of such untrue statement or omission) received by such Investor upon the sale of the Registrable Securities
included in such Registration Statement giving rise to such indemnification obligation.

 

(c)
Conduct of Indemnification Proceedings. Any person entitled to indemnification hereunder shall (i) give prompt notice to the indemnifying
party of any claim with respect to which it seeks indemnification and (ii) permit such indemnifying party to assume the defense of such
claim with counsel reasonably satisfactory to the indemnified party; provided that any person entitled to indemnification hereunder shall
have the right to employ separate counsel and to participate in the defense of such claim, but the fees and expenses of such counsel
shall be at the expense of such person unless (a) the indemnifying party has agreed to pay such fees or expenses, (b) the indemnifying
party shall have failed to assume the defense of such claim and employ counsel reasonably satisfactory to such person or (c) in the reasonable
judgment of any such person, based upon written advice of its counsel, a conflict of interest exists between such person and the indemnifying
party with respect to such claims (in which case, if the person notifies the indemnifying party in writing that such person elects to
employ separate counsel at the expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense
of such claim on behalf of such person); and provided, further that the failure of any indemnified party to give notice as provided herein
shall not relieve the indemnifying party of its obligations hereunder, except to the extent that such failure to give notice shall materially
adversely affect the indemnifying party in the defense of any such claim or litigation. It is understood that the indemnifying party
shall not, in connection with any proceeding in the same jurisdiction, be liable for fees or expenses of more than one separate firm
of attorneys at any time for all such indemnified parties. No indemnifying party will, except with the consent of the indemnified party,
which shall not be unreasonably withheld or conditioned, consent to entry of any judgment or enter into any settlement that does not
include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release from all liability
in respect of such claim or litigation.

 

    	10

    	 

    

 

(d)
Contribution. If for any reason the indemnification provided for in the preceding paragraphs (a) and (b) is unavailable to an
indemnified party or insufficient to hold it harmless, other than as expressly specified therein, then the indemnifying party shall contribute
to the amount paid or payable by the indemnified party as a result of such loss, claim, damage or liability in such proportion as is
appropriate to reflect the relative fault of the indemnified party and the indemnifying party, as well as any other relevant equitable
considerations. No person guilty of fraudulent misrepresentation within the meaning of Section 11(f) of the 1933 Act shall be entitled
to contribution from any person not guilty of such fraudulent misrepresentation. In no event shall the contribution obligation of a holder
of Registrable Securities be greater in amount than the dollar amount of the proceeds (net of all expenses paid by such holder in connection
with any claim relating to this Section 6 and the amount of any damages such holder has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission or alleged omission) received by it upon the sale of the Registrable Securities giving
rise to such contribution obligation.

 

7.
Miscellaneous.

 

(a)
Amendments and Waivers. This Agreement may be amended only by a writing signed by the Company and the Required Investors. The
Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company
shall have obtained the written consent to such amendment, action or omission to act, of the Required Investors.

 

(b)
Notices. All notices and other communications provided for or permitted hereunder shall be made as set forth in Section 9.4 of
the Purchase Agreement, mutatis mutandis.

 

(c)
Assignments and Transfers by Investors. The provisions of this Agreement shall be binding upon and inure to the benefit of the
Investors and their respective successors and permitted assigns. An Investor may transfer or assign, in whole or from time to time in
part, to one or more persons its rights hereunder in connection with the transfer of Registrable Securities by such Investor to such
person, provided that (i) the Investor agrees in writing with the transferee or assignee to assign such rights and a copy of such agreement
is furnished to the Company within a reasonable time after such assignment; (ii) the Company is, within a reasonable time after such
transfer or assignment, furnished with written notice of (A) the name and address of such transferee or assignee and (B) the securities
with respect to which such registration rights are being transferred or assigned; (iii) immediately following such transfer or assignment
the further disposition of such securities by the transferee or assignee is restricted under the 1933 Act or applicable state securities
laws; (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of this sentence the transferee
or assignee agrees in writing with the Company to be bound by all of the provisions contained herein; (v) such transfer shall have been
made in accordance with the applicable requirements of the Purchase Agreement and (vi) unless the transferee or assignee is an Affiliate
of, and after such transfer or assignment continues to be an Affiliate of, such Investor, the amount of Registrable Securities transferred
or assigned to such transferee or assignee represents at least $5.0 million of Registrable Securities (based on the then-current market
price of the Common Stock).

 

(d)
Assignments and Transfers by the Company. This Agreement may not be assigned by the Company without the prior written consent
of the Required Investors, provided, however, that in the event that the Company is a party to a merger, consolidation, share exchange
or similar business combination transaction (including without limitation the Merger) in which the Common Stock is converted into the
equity securities of another Person, from and after the effective time of such transaction, such Person shall, by virtue of such transaction,
be deemed to have assumed the obligations of the Company hereunder, the term “Company” shall be deemed to refer to such Person
and the term “Registrable Securities” shall be deemed to include the securities received by the Investors in connection with
such transaction unless such securities are otherwise freely tradable by the Investors after giving effect to such transaction.

 

    	11

    	 

    

 

(e)
Benefits of the Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective
permitted successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party
other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by
reason of this Agreement, except as expressly provided in this Agreement.

 

(f)
Counterparts; Faxes. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument. This Agreement may also be executed via facsimile, which shall be
deemed an original.

 

(g)
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.

 

(h)
Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be
interpreted as if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the
extent permitted by applicable law, the parties hereby waive any provision of law which renders any provisions hereof prohibited or unenforceable
in any respect.

 

(i)
Further Assurances. The parties shall execute and deliver all such further instruments and documents and take all such other actions
as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements herein
contained.

 

(j)
Entire Agreement. This Agreement, together with the Purchase Agreement, constitutes the sole and entire agreement of the parties
to this Agreement with respect to the subject matter contained herein, and is intended by the parties as a final expression of their
agreement and intended to be a complete and exclusive statement of the understanding of the parties hereto in respect of the subject
matter contained herein. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject
matter.

 

    	12

    	 

    

 

(k)
Governing Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance
with, the internal laws of the State of New York without regard to the choice of law principles thereof. Each of the parties hereto irrevocably
submits to the exclusive jurisdiction of the courts of the State of New York located in New York County, and the United States District
Court for the Southern District of New York for the purpose of any suit, action, proceeding or judgment relating to or arising out of
this Agreement and the transactions contemplated hereby (each, a “Related Proceeding”). Service of process in connection
with any such suit, action or proceeding may be served on each party hereto anywhere in the world by the same methods as are specified
for the giving of notices under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such court
in any such suit, action or proceeding and to the laying of venue in such court. Each party hereto irrevocably waives any objection to
the laying of venue of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit,
action or proceeding brought in any such court has been brought in an inconvenient forum. To the extent that the Company has or hereafter
may acquire any immunity (on the grounds of sovereignty or otherwise) from the jurisdiction of any court or from any legal process with
respect to itself or its property, the Company irrevocably waives, to the fullest extent permitted by law, such immunity in respect of
any such suit, action or proceeding. EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT
TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS TO THIS WAIVER.

 

(l)
Independent Nature of Investors’ Obligations and Rights. The obligations of each Investor hereunder are several and not
joint with the obligations of any other Investor hereunder, and no Investor shall be responsible in any way for the performance of the
obligations of any other Holder hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and
no action taken by any Investor pursuant hereto or thereto, shall be deemed to constitute the Investors as a partnership, an association,
a joint venture or any other kind of group or entity, or create a presumption that the Investors are in any way acting in concert or
as a group or entity with respect to such obligations or the transactions contemplated by this Agreement or any other matters, and the
Company acknowledges that the Investors are not acting in concert or as a group, and the Company shall not assert any such claim, with
respect to such obligations or transactions. Each Investor shall be entitled to protect and enforce its rights, including without limitation
the rights arising out of this Agreement, and it shall not be necessary for any other Investor to be joined as an additional party in
any proceeding for such purpose. The use of a single agreement with respect to the obligations of the Company contained was solely in
the control of the Company, not the action or decision of any Investor, and was done solely for the convenience of the Company and not
because it was required or requested to do so by any Investor. It is expressly understood and agreed that each provision contained in
this Agreement is between the Company and an Investor, solely, and not between the Company and the Investors collectively and not between
and among Investor.

 

[remainder
of page intentionally left blank]

 

    	13

    	 

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement or caused their duly authorized officers to execute this Agreement as of the
date first above written.

 

	COMPANY:	ADVAXIS,
    INC.
	 	 	               
	 	By:	 
	 	Name:
    	 
	 	Title:
    	 

 

    	S-1

    	 

    

 

	INVESTOR:	 	               
	 	By:
    	 
	 	Name:	 
	 	Title:
    	 

 

    	S-2

    	 

    

 

Exhibit
A

 

Plan
of Distribution

 

We
are registering the shares of common stock previously issued to permit the resale of these shares of the common stock by the holders
thereof from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale by the selling stockholders
of shares of the common stock. We will bear all fees and expenses incident to our obligation to register the shares of the common stock,
except that, if the shares of the common stock are sold through underwriters or broker-dealers, the selling stockholders will be responsible
for underwriting discounts or commissions or agent’s commissions.

 

The
selling stockholders may sell all or a portion of the shares of common stock beneficially owned by them and offered hereby from time
to time directly or through one or more underwriters, broker-dealers or agents. The shares of common stock may be sold in one or more
transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale,
or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block transactions,

 

	 	●	on
    any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;
	 	 	 
	 	●	in
    the over-the-counter market;
	 	 	 
	 	●	in
    transactions otherwise than on these exchanges or systems or in the over-the-counter market;
	 	 	 
	 	●	through
    the writing of options, whether such options are listed on an options exchange or otherwise;
	 	 	 
	 	●	ordinary
    brokerage transactions and transactions in which the broker-dealer solicits purchasers;
	 	 	 
	 	●	block
    trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as
    principal to facilitate the transaction;
	 	 	 
	 	●	purchases
    by a broker-dealer as principal and resale by the broker-dealer for its account;
	 	 	 
	 	●	an
    exchange distribution in accordance with the rules of the applicable exchange;
	 	 	 
	 	●	privately
    negotiated transactions;
	 	 	 
	 	●	short
    sales;
	 	 	 
	 	●	sales
    pursuant to Rule 144 of the Securities Act;

 

    	A-1

    	 

    

 

	 	●	broker-dealers
    may agree with the selling stockholder to sell a specified number of such shares at a stipulated price per share;
	 	 	 
	 	●	a
    combination of any such methods of sale; and
	 	 	 
	 	●	any
    other method permitted pursuant to applicable law.

 

If
the selling stockholders effect such transactions by selling shares of common stock to or through underwriters, broker-dealers or agents,
such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling
stockholders or commissions from purchasers of shares of common stock for whom they may act as agent or to whom they may sell as principal
(which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those customary
in the types of transactions involved). In connection with sales of shares of common stock or otherwise, the selling stockholders may
enter into hedging transactions with broker-dealers, which may in turn engage in short sales of shares of the common stock in the course
of hedging in positions they assume. The selling stockholders may also sell shares of the common stock short and deliver shares of the
common stock covered by this prospectus to close out short positions and to return borrowed shares in connection with such short sales.
The selling stockholders may also loan or pledge shares of the common stock to broker-dealers that in turn may sell such shares.

 

The
selling stockholders may pledge or grant a security interest in some or all of the shares of the common stock owned by them and, if they
default in the performance of their secured obligations, the pledgees or secured parties may offer and sell shares of the common stock
from time to time pursuant to this prospectus or other applicable provisions of the Securities Act, amending, if necessary, the list
of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus.
The selling stockholders also may transfer and donate shares of the common stock in other circumstances in which case the transferees,
donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

 

The
selling stockholders and any broker-dealer participating in the distribution of shares of the common stock may be deemed to be “underwriters”
within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer
may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of shares of the
common stock is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of shares of
the common stock being offered and the terms of the offering, including the name or names of any broker-dealers or agents, any discounts,
commissions and other terms constituting compensation from the selling stockholders and any discounts, commissions or concessions allowed
or reallowed or paid to broker-dealers.

 

Under
the securities laws of some states, shares of the common stock may be sold in such states only through registered or licensed brokers
or dealers. In addition, in some states shares of the common stock may not be sold unless such shares have been registered or qualified
for sale in such state or an exemption from registration or qualification is available and is complied with.

 

    	A-2

    	 

    

 

There
can be no assurance that any selling stockholder will sell any or all of the shares of the common stock registered pursuant to the registration
statement, of which this prospectus forms a part.

 

The
selling stockholders and any other person participating in such distribution will be subject to applicable provisions of the Exchange
Act, and the rules and regulations thereunder, including, without limitation, Regulation M of the Exchange Act, which may limit the timing
of purchases and sales of any of the shares of the common stock by the selling stockholders and any other participating person. Regulation
M may also restrict the ability of any person engaged in the distribution of shares of the common stock to engage in market-making activities
with respect to shares of the common stock. All of the foregoing may affect the marketability of shares of the common stock and the ability
of any person or entity to engage in market-making activities with respect to shares of the common stock.

 

We
will pay all expenses of the registration of shares of the common stock pursuant to the registration statement of which this prospectus
forms a part, including, without limitation, SEC filing fees and expenses of compliance with state securities or “blue sky”
laws; provided, however, that the selling stockholders will pay all underwriting discounts and selling commissions, if any. We will indemnify
the selling stockholders against liabilities, including some liabilities under the Securities Act, or the selling stockholders will be
entitled to contribution. We may be indemnified by the selling stockholders against civil liabilities, including liabilities under the
Securities Act, that may arise from any written information furnished to us by the selling stockholder specifically for use in this prospectus
or we may be entitled to contribution.

 

Once
sold under the registration statement of which this prospectus forms a part, shares of the common stock will be freely tradable in the
hands of persons other than our affiliates.

 

    	A-3

    	 

    

 

Exhibit
B

 

Selling
Stockholder Questionnaire

 

    	B-1ex_329142.htm

 

Exhibit 10.1  Confidential

 

CHANGE OF CONTROL, VOTING AND RESTRICTED STOCK AGREEMENT

 

This CHANGE OF CONTROL, VOTING AND RESTRICTED STOCK AGREEMENT (the “Agreement”) is signed as of January 28, 2022 (the “Signing Date”), by and among SPAR Group, Inc., a Delaware corporation, and the subsidiaries of SPAR Group, Inc. (collectively the “Company”), Robert G. Brown, an individual (“Brown”), William H. Bartels, an individual (“Bartels”), Spar Administrative Services, Inc., a Nevada corporation (“SAS”), and Spar Business Services, Inc., a Nevada corporation (“SBS,” and collectively with Brown, Bartels and SAS, the “Majority Stockholders” or individually, a “Majority Stockholder”). Capitalized words and phrases used and not otherwise defined elsewhere in this Agreement shall have the meanings set forth in Section 37.

 

RECITALS

 

WHEREAS, the Board of Directors of the Company (the “Board”) and the Majority Stockholders believe that entering into this Agreement and abiding by the terms and conditions of this Agreement are, and will continue to be, in the best interests of the Company and all of its stockholders, including, specifically, but not exclusively, (i) the resolution of current and potential future actions, claims and demands between the Majority Stockholders and the Company, (ii) the establishing of an independent board of directors that will provide for independent governance and oversight of the Company and (iii) enabling the Company’s management to focus on the Company’s operational and financial growth and improvement and driving stockholder value creation;

 

WHEREAS, as an express condition to the entry into and delivery of this Agreement by the Company, on the Signing Date, the Board approved, and filed with the Securities and Exchange Commission, amendments to the Amended and Restated By-Laws of the Company (the “By-Laws”) in the form attached hereto as Exhibit D;

 

WHEREAS, Brown represents and warrants as set forth in Exhibit A that as of the Signing Date, Brown beneficially owns or controls only 1,553,925 shares of Common Stock (including in a Roth IRA and an IRA), and is the manager of Innovative Global Technologies (“IGT”) which owns 3,000,000 shares of Common Stock (the “Brown Shares”), provided, however, that Brown specifically represents and warrants that the Brown Shares and Exhibit A do not include any shares of Common Stock held in the SP/R Defined Benefit Trust beneficially owned by Brown or shares of Common Stock held by Persons other than Brown;

 

WHEREAS, Bartels represents and warrants as set forth in Exhibit A that as of the Signing Date, Bartels beneficially owns or controls only 4,700,153 shares of Common Stock (the “Bartels Shares”), including through various retirement accounts (the “Retirement Shares,” together with the Brown Shares and the Bartels Shares, the “Initial Shares”);

 

WHEREAS, subject to the terms and conditions hereof, the Company is granting 2,000,000 shares, in the aggregate, of convertible preferred non-voting stock, $0.01, par value per share to the Majority Stockholders, as set forth on Exhibit A hereto (such shares, the “Convertible Shares”, and together with the Initial Shares, any shares of Common Stock issued upon the vesting of the Convertible Shares and any additional shares of Common Stock acquired by any Majority Stockholder after the Signing Date of this Agreement and during the Term, the “Shares”) in exchange for the further consideration set forth herein;

 

1

 

 

WHEREAS, subject to the terms and conditions hereof, concurrently and with the Signing Date of this Agreement, the Company will make a $250,000 cash payment (the “Payment”) to Brown as set forth on Exhibit A hereto, in exchange for the further consideration set forth herein;

 

WHEREAS, concurrently and with the Signing Date of this Agreement, the Company is assuming certain financial claims and releasing certain claims related to matters with the Majority Stockholders and Affinity Insurance Company, Ltd. (“Affinity”), as set forth in further detail herein;

 

WHEREAS, concurrently and with the Signing Date of this Agreement, the Majority Stockholders are releasing any and all claims that any of the Majority Stockholders may have against the Company;

 

WHEREAS, concurrently and with the Signing Date of this Agreement, the Company is releasing any and all claims that the Company may have against the Majority Stockholders; and

 

WHEREAS, the Majority Stockholders desire to be subject to certain voting restrictions to be enforced during the term of this Agreement, and such restrictions pursuant to this Agreement are given to facilitate the independent governance, management and operation of the Company and the exercise of voting rights relating to the Shares and are in the best interests of the Company and the Majority Stockholders.

 

AGREEMENT

 

NOW THEREFORE, in order to implement the foregoing and in consideration of the premises and the mutual covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.    Issuance of Shares and Payment.

 

(a)    Issuance of Convertible Shares. Subject to the terms and conditions of this Agreement, as of the Signing Date, the Company hereby grants the Convertible Shares (subject to the vesting requirements set forth in Section 2) to the Majority Stockholders in the respective amounts set forth on Exhibit A hereto. The Company shall issue and deliver to the Majority Stockholders, on the Signing Date and contemporaneously with the execution of this Agreement, fully executed certificate(s) evidencing the grant of the Convertible Shares in the form of Exhibit A-1 hereto to each of the Majority Stockholders in the respective amounts as set forth on Exhibit A hereto.

 

2

 

 

(b)    Issuance of Payment. Subject to the terms and conditions of this Agreement, upon the Signing Date of this Agreement, the Company shall make the Payment to Brown in the amount set forth on Exhibit A hereto.

 

(c)    Assumption and Release of Affinity Claims. Upon the Signing Date of this Agreement, subject to the terms and conditions of this Agreement, the Company hereby assumes financial responsibility for, and will pay directly to Affinity, the approximately $440,880 and interest of $32,898 plus all additional interest accrued until paid in full for Affinity claim for the 2014-2015 plan year.

 

For the avoidance of doubt, the Company shall not assume any obligation or liability for any other known or unknown Affinity claim or amount.

 

(d)    Assumption of Certain Claims. Upon the Signing Date of this Agreement, subject to the terms and conditions of this Agreement, the Majority Stockholders confirm as their sole responsibility, and assume financial responsibility for, the claims set forth on Section II of Exhibit B hereto (the “Third Party Claims”) as between the Company and any of its Affiliates (excluding, for this purpose, the Majority Stockholders) and the Majority Stockholders; provided, however, that nothing in this Agreement shall prevent the Majority Stockholders from contesting any such amounts with respect to any third parties claiming amounts due pursuant to such Third Party Claims and/or asserting claims, actions or defenses against other Persons or joining such other Persons in such Third Party Claims regarding the joint or several liability of such other Persons regarding such Third Party Claims, excluding in all cases, the Company and its Affiliates.

 

2.    Vesting of Convertible Shares.

 

(a)    Vesting Schedule. Subject to each Majority Stockholder’s compliance with all of the terms and conditions of this Agreement, the Convertible Shares shall vest, among the Majority Stockholders, on a pro rata basis, as follows:

 

(i)          If the Board is comprised of a total of seven members, at least three of whom are Independent Directors (the “Board Composition Requirement”) as of the Signing Date, then: (A) 700,000 Convertible Shares shall vest on the Signing Date; (B) 500,000 Convertible Shares shall vest on May 30, 2022; (C) 400,000 Convertible Shares shall vest on November 10, 2022; and (D) 400,000 Convertible Shares shall vest on November 10, 2023.

 

(ii)          If the Board Composition Requirement is not satisfied as of the Signing Date, then: (A) 350,000 Convertible Shares shall vest on the Signing Date; (B) 350,000 Convertible Shares shall vest immediately on the day the Board Composition Requirement is satisfied; (C) 700,000 Convertible Shares shall vest on May 30, 2022; (D) 300,000 Convertible Shares shall vest on November 10, 2022; and (E) 300,000 Convertible Shares shall vest on November 10, 2023.

 

3

 

 

(iii)          In the event that the total beneficial ownership of the Common Stock by (A) the Majority Stockholders, (B) any Family Members of any Majority Stockholders and (C) the Affiliates of any of the Persons listed in clauses (A) and (B) of this Section 2(a)(iii) equals less than 20% of the total outstanding number of shares of the Common Stock for a period of at least 6 months, then on the day immediately following the last day of such six month period all unvested Convertible Shares shall fully vest.

 

(b)         Change of Control. Notwithstanding Section 2(a) and subject to the Majority Stockholders’ compliance with the terms and conditions of this Agreement, in the event of a Change of Control, any and all unvested Convertible Shares shall vest in full. For the avoidance of doubt, this Agreement, and all of its terms and conditions, shall remain in place following any Change of Control. 

 

(c)         Automatic Conversion to Common Stock.         Upon vesting, the Convertible Shares shall automatically (with no further action required on the part of the Majority Stockholders, the Company or the Board) be converted into such number of shares of Common Stock identical to the product obtained by multiplying the number of shares of convertible preferred non-voting stock represented by the Convertible Shares by 1.5 (as may be adjusted pursuant to Section 18, the “Conversion Ratio”).

 

(d)         No Voting Rights. The Convertible Shares shall not have any rights or powers to vote. Upon vesting, each share of Common Stock that is issued to any Majority Stockholder pursuant to the Convertible Shares, will be subject to the terms and conditions of this Agreement, including Section 7 hereof.

 

(f)         No Dividends. No dividends may be paid by the Company to any holder of the Convertible Shares on account of such Convertible Shares.

 

(g)         Authorized Common Stock. At all times during the Term of this Agreement, the Board shall cause the Company to have that number of shares of authorized but unissued Common Stock necessary for all of the Convertible Shares to fully convert to Common Stock in accordance with the terms of this Agreement.

 

3.    Investor Representations. Each Majority Stockholder hereby makes the investment representations listed on Exhibit C to the Company as of the Signing Date, and agrees that such representations are incorporated into this Agreement by this reference, such that the Company may rely on them in issuing the Convertible Shares.

 

4.    Tax Consequences. The Company will not be responsible for filing an election, if any, pursuant to Section 83(b) of the Internal Revenue Code. Each Majority Stockholder has reviewed with its own tax advisors the federal, state, local and foreign tax consequences of this investment and the transactions contemplated by this Agreement. Each Majority Stockholder is relying solely on its own tax advisors and is not relying on the Company or any of its agents, including any statements or representations of the Company or any of its agents and understands and acknowledges that the relevant tax authorities may challenge, possibly successfully, the intended tax treatment. Each Majority Stockholder understands and agrees that each Majority Stockholder (and not the Company) shall be responsible for any tax liability to the Majority Stockholders. The Company shall be liable for any tax imposed on the Company attributable to the transactions contemplated by this Agreement. All payments (in cash or in-kind) payable to the Majority Stockholders shall be subject to withholding to the extent required by applicable law, and any amounts payable hereunder shall be subject to offset to the extent of any withholding obligations. The Company shall cooperate with the Majority Stockholders using commercially reasonable efforts to mitigate any such required withholding. The value, for tax purposes, of the Convertible Shares when vested hereunder shall be $1.60 per share.

 

4

 

 

5.    Reserved.

 

6.    Reserved.

 

7.    Majority Stockholder and Stockholder Meetings and Written Consent Actions. Except as otherwise provided by Section 9, at all meetings of the stockholders of the Company, the Majority Stockholders agree to (a) take all actions as are reasonably necessary to cause all of the Shares to be counted as present for purposes of establishing a quorum at any such meeting and (b) abstain from voting any Shares on any Covered Matter.

 

8.    Majority Stockholder Expenses. The Majority Stockholders shall bear all of their expenses incurred in connection with the negotiation and execution of, and compliance with, this Agreement; provided, however, that the Company will reimburse up to $35,000 of legal and financial advisor expenses incurred after January 1, 2021 by the Majority Stockholders in connection with the negotiation and execution of this Agreement upon (a) the execution of this Agreement by all parties hereto and (b) the submission of itemized and detailed invoices to the Company for any such legal expenses.

 

9.    Covered Matters. This Agreement shall remain in effect during the period commencing on the Signing Date and continuing up and until the earlier of: (1) the date that is the fifth anniversary of the Signing Date and (2) the earlier termination of this Agreement in accordance with its terms (the “Termination Date”) (the period of this Agreement commencing with the Signing Date and ending on the Termination Date is hereinafter referred as the “Term”). During the Term, no Majority Stockholder or any of their respective Affiliates shall have any rights or powers to vote any shares of Common Stock, or to give consents with respect to, grant proxies or take corporate action with regard to any shares of Common Stock, directly or indirectly, alone or in conjunction with other stockholders of the Company, to effectuate any of the following actions:

 

(a)    act or attempt to act by written consent action;

 

(b)    submit or attempt to submit any stockholder proposals in advance of any annual or special stockholders meeting of the Company;

 

5

 

 

(c)    call or attempt to call any special meetings of the Company’s stockholders;

 

(d)    continue or commence or attempt to continue or commence any legal claims against the Company, including without limitation the matters set forth on Exhibit B attached hereto, except that nothing in this Section 9(d) shall prohibit the Majority Stockholders from asserting any claims or taking any action arising out of, resulting from or relating to a breach or default of this Agreement;

 

(e)    change or attempt to change the size of the Board;

 

(f)    appoint or remove or attempt to appoint or remove any director or officer of Company, except as expressly permitted in Section 10;

 

(g)    amend or attempt to amend the Company’s Certificate of Incorporation or Amended and Restated By-Laws; and

 

(h)    enter or attempt to enter into any agreement, arrangement or understanding (written or otherwise) with any other Person in an effort to take any action in furtherance of the foregoing.

 

Notwithstanding the foregoing, if any of the matters listed in Section 9(a)—(h) above (each a “Covered Matter” and collectively, the “Covered Matters”) are the subject of a vote at a meeting of the Company’s stockholders called by the Board, the Majority Stockholders will have the full right to vote any Shares at each stockholder meeting on all proposals, including Covered Matters, and other matters that are put to a stockholder vote as such Majority Stockholder shall determine, in such Majority Stockholder’s sole and absolute discretion; provided, however, that if any stockholder proposals are brought before such meeting with respect to any matters covered by Section 9(g) (the “Prohibited Matters”), then the Majority Stockholders may vote on those stockholder proposals only if such voting is either (i) against any amendments or revisions to the Company’s Certificate of Incorporation or Amended and Restated By-Laws or (ii) authorized, in advance, by all of the Independent Directors and the chief executive officer of the Company.

 

10.   Director Matters.

 

(a)    During those periods during the Term when the Board has at least seven members, Brown shall have the right to (i) nominate for election to the Board two directors (which may include Brown, provided that, none of whom may seek, or accept an appointment, to act as Chairman of the Board, Vice Chairman of the Board or Chairman of any of the committees of the Board for the Term of the Agreement) and (ii) replace either of the two directors with another director for any reason or no reason at any time by providing notice to the Board, and the Board, including the Independent Directors, and the Company shall take all actions as are reasonably necessary to elect such directors to the Board. During those periods during the Term when the Board has not less than four nor more than six members, Brown shall have the right to (i) nominate for election to the Board one director (which may include Brown, provided that, such director may not seek, or accept an appointment, to act as Chairman of the Board, Vice Chairman of the Board or Chairman of any of the committees of the Board for the Term of the Agreement) and (ii) replace the director with another director for any reason or no reason at any time by providing notice to the Board, and the Board, including the Independent Directors, and the Company shall take all actions as are reasonably necessary to elect such director to the Board. Notwithstanding the foregoing, if the Board, any committee of the Board, the Company or any member of the Board, individually or collectively, takes any action that results in any such director nominated by Brown being in breach of the terms of the proviso set forth in subsection (i) of the first sentence of this Section 10(a) or the terms of the proviso set forth in subsection (i) of the second sentence of this Section 10(a), such action shall not constitute a Breach of this Agreement by any Majority Stockholder or any other Person.

 

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(b)    During those periods during the Term when the Board has four or more members, Bartels shall have the right to (i) nominate for election to the Board one director (which may include Bartels, provided that, none of whom may seek, or accept an appointment, to act as Chairman of the Board, Vice Chairman of the Board or Chairman of any of the committees of the Board for the Term of the Agreement) and (ii) replace the director with another director for any reason or no reason at any time by providing notice to the Board, and the Board, including the Independent Directors, and the Company shall take all actions as are reasonably necessary to elect such director to the Board. During those periods during the Term when the Board has less than four members, Bartels shall have the right to (i) nominate for election to the Board one director (which may include Brown or Bartels, provided that, such director may not seek, or accept an appointment, to act as Chairman of the Board, Vice Chairman of the Board or Chairman of any of the committees of the Board for the Term of the Agreement) and (ii) replace the director with another director for any reason or no reason at any time by providing notice to the Board, and the Board, including the Independent Directors, and the Company shall take all actions as are reasonably necessary to elect such director to the Board. Notwithstanding the foregoing, if the Board, any committee of the Board, the Company or any member of the Board, individually or collectively, takes any action that results in any such director nominated by Bartels being in breach of the terms of the proviso set forth in subsection (i) of the first sentence of this Section 10(b) or the terms of the proviso set forth in subsection (i) of the second sentence of this Section 10(b), such action shall not constitute a Breach of this Agreement by any Majority Stockholder or any other Person.

 

(c)    Should either Brown and/or Bartels become deceased or disabled during the Term, the duly authorized representative of Brown or Bartels, as may be applicable, shall have the power and authority to act in the place of Brown or Bartels, as applicable, regarding the actions to be taken under this Section 10 hereof.

 

11.    Restrictive Covenants. During the Term, each Majority Stockholder and any Affiliates shall not, and each Majority Stockholder shall cause each of its Affiliates not to, at any time while he, she or it is a holder of Common Stock, directly or indirectly, alone or in conjunction with other stockholders of the Company, take any actions in contravention of the Majority Stockholders’ obligations regarding the Covered Matters, or any other term or condition of this Agreement, set forth in this Agreement; provided, however, that the parties acknowledge and agree that with regard to the voting of the Retirement Shares regarding any Prohibited Matter, Bartels will not be in Breach of this covenant as long as Bartels has used his reasonable efforts to notify and direct the legal owner of the Retirement Shares to vote on a Prohibited Matter in accordance with Section 9 regardless of how the legal owner of the Retirement Shares actually votes such shares.

 

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12.   Breach and Default.

 

(a)    Majority Stockholder Breach. If, during the Term of this Agreement, any of the Majority Stockholders materially breaches or fails to perform or comply with its obligations regarding a Covered Matter or any other material obligation on the part of such Majority Stockholder set forth in this Agreement (a “Breach”), then the Company shall give the Majority Stockholders written notice of such potential Breach within 60 days of the date of the occurrence of the event that constitutes such potential Breach (the “Breach Notice”) specifying, in reasonable detail, the facts and events that constitute the basis of the potential Breach by the Majority Stockholder and the date(s) such acts or omissions occurred. Such Majority Stockholder shall have fifteen business (15) days after the receipt of such Breach Notice to cure the potential Breach; provided, however, that if any such potential Breach cannot reasonably be cured within such fifteen business (15) day period, then the Majority Stockholder shall have an additional fifteen business (15) days to cure such potential Breach and no Breach shall be deemed to exist hereunder so long as the Majority Stockholder commences such cure within the initial fifteen (15) business day period and diligently and in good faith pursues such cure to completion within thirty (30) business days from receipt of the Breach Notice (the “Cure Period”), then the provisions of Section 12(a) shall not apply to any potential Breach which is cured within the Cure Period. In the event the potential Breach has not been cured on or before the end of the Cure Period, then:

 

(i)    all unvested Convertible Shares shall be forfeited to the Company by the breaching Majority Stockholder; and

 

(ii)    the Majority Stockholder in Breach beyond the applicable Cure Period shall, at the option of such Majority Stockholder in such Majority Stockholder’s absolute discretion, either: (A) promptly pay to the Company, in cash, the equivalent value of the number of shares of Common Stock issued pursuant to the vested Convertible Shares received under this Agreement multiplied by the market price of said shares on the day of vesting; or (B) return to the Company the shares of Common Stock issued pursuant to the vested Convertible Shares received under this Agreement; provided, however, that, if Brown is in Breach beyond the Cure Period, Brown shall also, at the option of Brown in Brown’s absolute discretion, either: (i) promptly return shares of the Company with a total market price value of $250,000; or (ii) promptly pay to the Company $250,000 in cash (collectively, the “Liquidated Damages”);

 

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Notwithstanding the above or any other provision of this Agreement, in the event that the Majority Stockholders breach Section 9 hereof by voting on a Prohibited Matter without obtaining the prior approval required by subsection (ii) of the last paragraph of Section 9 (the “Prohibited Matter Breach”), then the Company shall give the Majority Stockholders written notice of such potential Breach within fifteen (15) business days of the date of the occurrence of the event that constitutes such potential Breach (the “Prohibited Matters Breach Notice”) specifying, in reasonable detail, the facts and events that constitute the basis of the potential Breach by the Majority Stockholder and the date(s) such acts or omissions occurred. Such Majority Stockholder shall have the same rights, including the Cure Period regarding the Prohibited Matter Breach as provided with regard to a Breach in Section 12(a), and the provisions of Section 12(a) shall not apply to any potential Prohibited Matter Breach which is cured on or before the Cure Period. In the event the potential Prohibited Matter Breach has not been cured on or before the end of the Cure Period all unvested Convertible Shares shall immediately be forfeited to the Company by the breaching Majority Stockholder and the breaching Majority Stockholder shall promptly pay the Liquidated Damages to the Company (the “Prohibited Matter Remedy”).

 

The parties intend that the Liquidated Damages constitute compensation, and not a penalty. The parties acknowledge and agree that the harm caused by a Breach by any Majority Stockholder would be impossible or very difficult to accurately estimate as of the Signing Date, and that the Liquidated Damages are a reasonable estimate of the anticipated or actual harm that might arise from such a breach.

 

(b)    Company Breach. If, during the Term of this Agreement, the Company breaches the terms of this Agreement or otherwise fails to comply with its obligations set forth in this Agreement, then in the case of any breach by the Company which is (x) capable of being cured by the Company without prejudice to the rights of any Majority Stockholder, and (y) cured within 30 business days of the delivery of notice of breach by any Majority Stockholder to the Company, then any such breach shall be deemed to have not been a breach of this Agreement. In the event any breach of this Agreement by the Company is not cured or not cured within the time period provided in the immediately preceding sentence, if applicable, then: (i) all unvested Convertible Shares shall immediately vest and shall automatically (with no further action required on the part of the Majority Stockholders, the Company or the Board) be converted into such number of shares of Common Stock identical to the product obtained by multiplying the number of shares of convertible preferred non-voting stock by 1.5; (ii) the Company shall remain obligated to and liable for making the payments and satisfying the obligations set forth in Section 1 hereof; and (iii) the Shares shall no longer be subject to the terms of this Agreement including, without limitation, the obligations with regard to the Covered Matters and Prohibited Matters, the other obligations to vote or refrain from voting the Shares, and all restrictions on transfer of the Shares.

 

13.    Transfer of Shares and Termination.

 

(a)    General. This Agreement shall have no further force and effect (i) upon termination of this Agreement pursuant to its terms or (ii) with respect to each of the Majority Stockholders or any of their Affiliates, Family Members or Relatives when such Person no longer beneficially owns any Shares or other voting securities of the Company which are subject to this Agreement.

 

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(b)    Acquisition and Transfer of Shares. Subject to the terms and conditions of this Agreement, each Majority Stockholder shall have the power to Transfer the Shares. If a Majority Stockholder sells any Shares: (i) to a Person which Person is not a Majority Stockholder; (ii) to a Person which Person is not an Affiliate, Family Member or Relative of a Majority Stockholder, (including any trusts or other entities, controlled by, or created for the benefit of, such Affiliate, Family Member or Relative of a Majority Stockholder); or (iii) pursuant to a broker-facilitated trade on a national securities exchange or in the over-the-counter market (each such Transfer is hereinafter referred to as an “Independent Third Party Transfer”), then such Shares shall no longer be subject to the terms of this Agreement as of the effective date of such Independent Third Party Transfer. The Company shall fully cooperate to permit such Independent Third Party Transfer to be completed in a timely manner and in accordance with the instructions and agreements of the parties to the Independent Third Party Transfer, but in any event not later than five (5) business days after the written request for same by the parties to the Independent Third Party Transfer. At any time during the Term, a Majority Stockholder may reallocate the Majority Stockholder’s ownership interest in any Shares to a separate account to benefit a member of such Majority Stockholder’s family (whether by blood, marriage or legal guardianship), including without limitation parents, children, aunts, uncles, cousins, nieces, nephews, grandparents or grandchildren of an individual, regardless of whether such individuals share a household with one another, or Transfer the ownership in any Shares other than pursuant to an Independent Third Party Transfer (each, an “Other Transfer”). All Shares Transferred other than pursuant to an Independent Third Party Transfer (including, but not limited to, an Other Transfer) (i) shall remain subject to the terms and conditions of this Agreement, (ii) such transferee shall be required to execute, and the Majority Stockholder shall deliver to the Company not later than two (2) business days immediately following such transfer, a Joinder to this Agreement in the form attached hereto as Exhibit E and (iii) such transferee shall thereafter be deemed an Affiliate of the Majority Stockholder and, during the Term, subject to the terms of this Agreement in accordance with the Joinder to this Agreement; provided, however, that each of the Majority Stockholders shall be permitted to effectuate Other Transfers for up to an aggregate of 100,000 Shares each calendar year during the Term (the “De Minimis Transfer”) and the Shares subject to the De Minimis Transfer shall not be subject to the restrictions set forth in subsections (i) through (iii) of the immediately preceding sentence.

 

(c)    Sale of Shares. Other than restrictions imposed by applicable securities laws, there shall be no restriction on the sale of Shares subject to an Independent Third Party Transfer whether the result of a sale of stock privately or in the public market. The Company shall not place any legends on any certificates or book entries evidencing or regarding the Shares restricting the transfer of any of the Shares.

 

14.    Representations and Warranties of the Majority Stockholders.

 

The Majority Stockholders represent and warrant to the Company, as of the Signing Date, that:

 

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(a)    The Majority Stockholders have all requisite capacity and authority to enter into this Agreement and to perform their obligations hereunder and have each, to the extent requested by the Company, provided evidence to the Company of due authorization to enter into this Agreement.

 

(b)    The Majority Stockholders, or other listed entities, own of record the shares of Common Stock set forth on Exhibits A hereto (the “Controlled Shares”). None of the Majority Stockholders own, control (directly or indirectly), have the option or right to purchase, right to vote, hold proxies, or otherwise have the power to direct the voting or disposition of any shares of Common Stock other than the Controlled Shares.

 

(c)    Subject to the due authorization, execution and delivery of this Agreement by the Company, this Agreement, when executed and delivered, shall constitute a valid and legally binding obligation of the Majority Stockholders, enforceable against the Majority Stockholders in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other laws of general application relating to or affecting the enforcement of creditors’ rights generally, by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and by general principles of equity.

 

(d)    The Majority Stockholders have sole voting power (including the right to control such vote as contemplated herein), sole power of disposition, sole power to issue instructions with respect to the matters set forth in Section 9, and sole power to agree to all of the matters applicable to the Majority Stockholders set forth in this Agreement, in each case, over all of the Controlled Shares subject to any applicable law, the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) regulations or the terms and conditions of any trusts.

 

(e)    The execution, delivery and performance of this Agreement by the Majority Stockholders does not result in any material violation or material default (with or without notice or lapse of time, or both) of or under (i) any order, writ, injunction, judgment or decree of any governmental entity to which any Majority Stockholder is subject; (ii) any provision of any law applicable to any Majority Stockholder; or (iii) any material agreement to which any Majority Stockholder is a party or by which any Majority Stockholder is bound.

 

(f)    Except for this Agreement, and any liens on stock by banks in the normal course of business that would not limit the Majority Stockholders’ ability to comply with the terms and conditions of this Agreement, each Majority Stockholder has not (i) entered into any outstanding voting agreement, voting trust or similar agreement with respect to any of the Controlled Shares, (ii) granted any outstanding proxy, consent or power of attorney with respect to any of the Controlled Shares or (iii) taken any other action that would have the effect of preventing or disabling any Majority Stockholder from performing any of the obligations under this Agreement in any material respect.

 

(g)    Each Majority Stockholder is relying on advice from such stockholders own tax advisors for the federal, state, local and foreign tax consequences of the transactions contemplated by this Agreement, and is not relying on any statements or advice from the Company with respect to such tax consequences.

 

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15.   Representations and Warranties of the Company.

 

The Company represents and warrants to the Majority Stockholders, as of the Signing Date, that:

 

(a)    The Company has the requisite capacity to enter into this Agreement and to perform its respective obligations hereunder.

 

(b)    Subject to the due authorization, execution and delivery of this Agreement, this Agreement, when executed and delivered, shall constitute a valid and legally binding obligation of the Company, enforceable against the Company in accordance with its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance or other laws of general application relating to or affecting the enforcement of creditors’ rights generally, by laws relating to the availability of specific performance, injunctive relief or other equitable remedies, and by general principles of equity.

 

(c)    The execution, delivery and performance of this Agreement by the Company does not result in any material violation or material default (with or without notice or lapse of time, or both) of or under (i) any order, writ, injunction, judgment or decree of any governmental entity to which the Company is subject; (ii) any provision of any law applicable to the Company; or (iii) any material agreement to which the Company is a party or by which the Company is bound.

 

(d)    Except for this Agreement, the Company has not taken any other action that would have the effect of preventing or disabling the Company from performing any of the obligations under this Agreement in any material respect.

 

(e)    Based upon, and following the recommendation of Company management, the Audit Committee of the Company has approved this transaction as being in the best interests of the Company and approved the transaction as a Related Party transaction.

 

(f)    The Board has approved the issuing of the Convertible Shares in this Agreement and has taken all steps necessary to permit the Convertible Shares to be issued in accordance with this Agreement and all applicable state and federal laws including, without limitation, the filing with the State of Delaware a Certificate of Designation establishing the class/series of convertible preferred non-voting stock of the Company to issue the Convertible Shares in accordance with the terms of this Agreement.

 

(g)    The Board has taken all action necessary to and the Company has authorized and registered sufficient shares of Common Stock so that when the Convertible Shares convert to Common Stock in accordance with the terms of this Agreement there will be sufficient shares of Common Stock authorized but unissued to allow for full conversion to the Convertible Shares to shares of Common Stock of Company.

 

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(h)    By the Company’s executing this Agreement, the Company acknowledges, agrees, represents and warrants that the Amended and Restated By-Laws of the Company: (i) with such terms and conditions as are acceptable to the Company have been adopted and implemented in accordance with all applicable law, rules and regulations and corporate requirements; and (ii) fully and completely satisfy all conditions precedent regarding such matter to Company’s entering into this Agreement.

 

16.   Investment Representations and Further Documents. Each Majority Stockholder agrees upon request to execute any further documents or instruments reasonably necessary in the view of the Company to carry out the purposes or intent of this Agreement, including Exhibit C of this Agreement. For all purposes hereof, Brown shall use his reasonable efforts to cause IGT to comply with all terms and conditions of this Agreement to the same extent as a Majority Stockholder with respect to the Shares it holds as set forth in Exhibit A. The Company agrees upon request to execute any further documents or instruments reasonably necessary in the view of the Majority Stockholders, including all legal documents necessary to issue the Convertible Shares to the Majority Stockholders, to issue Common Stock when the Convertible Shares are converted, to remove any legends and/or restrictions on the transfer of the Shares to permit the Shares to be transferred as permitted and/or authorized by this Agreement, and to carry out the purposes or intent of this Agreement.

 

17.    Rights as Stockholder. Subject to the terms and conditions of this Agreement, each Majority Stockholder shall have all of the rights of a stockholder of the Company with respect to the Shares from and after the Signing Date, and until such time as a Majority Stockholder Transfers the Shares in accordance with this Agreement. Upon such Transfer, such Majority Stockholder shall have no further rights with respect to the Shares so Transferred.

 

18.    Adjustment for Stock Split, etc. All references in this Agreement to the number of shares of Common Stock automatically issuable upon the conversion of the Convertible Shares upon vesting, shall be adjusted in the event of any change in the number of issued shares of Common Stock (or issuance of shares other than Common Stock) by reason of any forward or reverse share split, or share dividend, recapitalization, reclassification, merger, consolidation, split-up, spin-off, reorganization, combination, exchange of shares of Common Stock, the issuance of warrants or other rights to purchase shares of Common Stock or other securities, or any other change in corporate structure or in the event of any extraordinary distribution (whether in the form of cash, shares of Common Stock, other securities or other property) (each, an “Adjustment Event”), so that the percentage of outstanding Common Stock of the Company represented by the shares of Common Stock issuable upon conversion of the Convertible Shares held by each Majority Stockholder hereunder immediately prior to such Adjustment Event constitutes the same percentage of outstanding Common Stock of the Company immediately after such Adjustment Event.

 

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19.   Majority Stockholder Release of Claims.

 

(a)    Each Majority Stockholder, for himself, herself or itself and his, her or its Affiliates (past, present and future), heirs, assigns, executors, administrators, personal representatives and other successors, does, and shall cause each of his her, or its Affiliates (past, present and future) to, herewith now and forever absolutely, unconditionally and irrevocably release, indemnify and discharge each of the Company and its Affiliates (past, present and future) and stockholders, and each of the present and former directors, officers, partners, managers, employees, agents, attorneys and successors of the foregoing, from any and all claims, demands, rights, actions, suits, proceedings, liabilities, expenses, claims for reimbursement or indemnification, claims of any kind or type that might be assigned, or attempted to be assigned, by the Majority Stockholders to the Company, obligations and causes of action of any kind and nature whatsoever (collectively, with the matters set forth in Section I of Exhibit B attached hereto, “Claims”), fixed or contingent, known or unknown, liquidated or unliquidated, that each Majority Stockholder or any Person claiming through or under each Majority Stockholder ever had or now has or hereafter can, shall or may have for, upon or by reason of any matter, cause or event resulting from, arising out of or incurred with respect to, or alleged to result from, arise out of or be incurred with respect to, acts or omissions to act of any nature and kind whatsoever that occurred, in whole or in part, prior to or at the Signing Date (and, with respect to the adoption of Section 3.01 of the Bylaws), including, without limitation, all matters involving the Company, on one hand, and any Majority Stockholder and/or any Affiliates thereof, on the other hand (collectively, this Section 19 is hereinafter referred to as the “Majority Stockholder Release”).

 

(b)    Each Majority Stockholder expressly acknowledges that (i) the Majority Stockholder Release is intended to include in its effect all Claims any Majority Stockholder may have against the Company, including, without limitation, all Claims that any Majority Stockholder does not know or suspect to exist in such Majority Stockholder’s favor at the time of the execution and delivery hereof and (ii) the Majority Stockholder Release contemplates the extinguishment of all such Claims.

 

(c)    The provisions of the Majority Stockholder Release are contractual and not a mere recital. Each Majority Stockholder acknowledges that, before executing and delivering this Agreement, each Majority Stockholder has received and reviewed in detail the Majority Stockholder Release and this Agreement, that each Majority Stockholder fully understands the terms, content and effect of the Majority Stockholder Release and this Agreement, that each Majority Stockholder has relied fully and completely on its own judgment in executing and delivering the Majority Stockholder Release and this Agreement and that each Majority Stockholder has had the opportunity to obtain advice from an attorney of its own choosing.

 

(d)    Each Majority Stockholder is receiving a substantial economic benefit as a result of the transactions contemplated by this Agreement, and the Majority Stockholder Release is executed and delivered with the intent and understanding that it will be relied upon by the Company and its Affiliates and stockholders and the successors and assigns of the foregoing.

 

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(e)    If any Majority Stockholder takes any action in contravention of this Section 19, it shall constitute a breach of this Agreement.

 

20.   Company Release of Claims.

 

(a)    The Company for itself and its Affiliates (past, present and future), representatives and other successors, does, and shall cause each of its Affiliates (past, present and future) to, herewith now and forever absolutely, unconditionally and irrevocably release, indemnify and discharge each Majority Stockholder, for himself, herself or itself and his, her or its Affiliates, heirs, assigns, executors, administrators, personal representatives and other successors of the foregoing, from any and all Claims, fixed or contingent, known or unknown, liquidated or unliquidated, that the Company or any Affiliate claiming through or under the Company ever had or now has or hereafter can, shall or may have for, upon or by reason of any matter, cause or event resulting from, arising out of or incurred with respect to, or alleged to result from, arise out of or be incurred with respect to, acts or omissions to act of any nature and kind whatsoever that occurred, in whole or in part, prior to or at the Signing Date, including, without limitation, all matters involving the Company, on one hand, and any Majority Stockholder and/or any Affiliates thereof, on the other hand (collectively, this Section 20 is hereinafter referred to as the “Company Release”).

 

(b)    The Company expressly acknowledges that (i) the Company Release is intended to include in its effect all Claims the Company may have against any Majority Stockholder, including, without limitation, all Claims that the Company does not know or suspect to exist in the Company’s favor at the time of the execution and delivery hereof and (ii) the Company Release contemplates the extinguishment of all such Claims.

 

(c)    The Company Release is executed and delivered with the intent and understanding that it will be relied upon by the Majority Stockholders and the successors and assigns of the foregoing.

 

(d)    If the Company takes any action in contravention of this Section 20, it shall constitute a breach of this Agreement.

 

21.    Amendments. This Agreement may be amended, modified or supplemented at any time and from time to time by the written agreement of the Company and the Majority Stockholders; provided, however, that the consent of the Company shall not be required to add a new party hereto in accordance with Section 13.

 

22.    Governing Law. This Agreement, including its existence, validity, construction, and operating effect, and the rights of the parties hereto, shall be governed by and construed in accordance with the laws of the State of Delaware without regard to otherwise governing principles of conflicts of law.

 

23.    Severability. If any one or more of the provisions of this Agreement, as applied to any party or any circumstance, shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. If any one or more of the provisions of this Agreement shall, for any reason, be held to be unenforceable as to duration, scope, activity or subject, such provision shall be construed by limiting and reducing it so as to make such provision enforceable to the extent compatible with the then existing applicable law.

 

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24.    Specific Performance. The parties agree that the failure of any party to perform any obligation provided for by this Agreement could result in irreparable damage to the other parties, and that monetary damages alone would not be adequate to compensate the non-defaulting party for its injury. Any party shall therefore be entitled, in addition to any other remedy that may be available, including monetary damages, to obtain specific performance of the terms of this Agreement. If any action is brought by any party to enforce this agreement, any party against which the action is brought shall waive the defense that there is an adequate remedy at law.

 

25.    Notices. All notices, consents, waivers, and other communications under this Agreement must be in writing and will be deemed to have been duly given when (i) delivered by hand (with written confirmation of receipt), (ii) upon receipt, if sent by electronic or digital transmission method (including e-mail), or (iii) on the date of receipt or refusal indicated on the return receipt, if sent by registered or certified mail, return receipt requested, postage and charges prepaid and properly addressed, in each case to the appropriate addresses and e-mail addresses as a party may designate by notice to the other parties from time to time.

 

26.    Binding Effect. Except as otherwise expressly provided herein, this Agreement shall be binding on and inure to the benefit of the parties hereto, their heirs, executors, administrators, successors and all other Persons hereafter that become a party hereto. No rights or obligations hereunder may be assigned by any party hereto except as explicitly provided in this Agreement.

 

27.    Benefit and Burden. Nothing express or implied in this Agreement is intended or shall be construed to confer upon or to provide any Person other than the parties (and including specifically any stockholder of the Company that is not a party to this Agreement) any rights or remedies hereunder or by reason hereof. This Agreement and all its conditions and provisions are intended to be, and are, for the sole and exclusive benefit of the parties hereto and their permitted successors and assigns and are not for the benefit of any other Person. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise, by any of the parties hereto without the prior written consent of the other parties.

 

28.    Cumulative Remedies. All rights and remedies provided in this Agreement are cumulative and not exclusive, and the exercise by any party of any right or remedy does not preclude the exercise of any other rights or remedies that may now or subsequently be available at law, in equity, by statute, in any other agreement between the parties or otherwise.

 

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29.    Certain Rules of Construction. To the fullest extent permitted by law, the parties hereto intend that any ambiguities shall be resolved without reference to which party may have drafted this Agreement. All Section or subsection titles or other captions in this Agreement are for convenience only, and they shall not be deemed part of this Agreement and in no way define, limit, extend or describe the scope or intent of any provisions hereof. Unless the context otherwise requires: (a) a term has the meaning assigned to it; (b) “or” is not exclusive; (c) words in the singular include the plural, and words in the plural include the singular; (d) provisions apply to successive events and transactions; (e) “herein,” “hereof” and other words of similar import refer to this Agreement as a whole and not to any particular Section, subsection or other subdivision; (f) “include” or “including” shall be deemed to be followed by “without limitation” or “but not limited to” whether or not they are followed by such phrases or words of like import; (g) all references to “Sections” refer to Sections or subsections of this Agreement; (h) any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter forms; and (i) all references to “dollars”, “cents” or “$” shall be in U.S. Dollars.

 

30.    Waiver. The failure of any party at any time to insist upon strict performance of any condition, promise, agreement or understanding set forth in this Agreement shall not be construed as a waiver or relinquishment of the right to insist upon strict performance of the same or any other condition, promise, agreement or understanding at a future time.

 

31.    Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto pertaining to the subject matter hereof and fully supersedes any and all prior or contemporaneous agreements or understandings between the parties hereto pertaining to the subject matter hereof.

 

32.    Counterparts. This Agreement may be executed in any number of multiple counterparts, each of which shall be deemed to be an original copy and all of which shall constitute one agreement, binding on all parties hereto. In the event that any signature is delivered by facsimile transmission, or by e-mail of a “.pdf” format data file, or other electronic format, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or electronic signature page were an original thereof.

 

33.    Arbitration. It is understood and agreed between the parties hereto that any and all claims, grievances, demands, controversies, causes of action or disputes of any nature whatsoever (collectively, “Agreement Claims”), arising out of, in connection with, or in relation to this Agreement or the arbitrability of any Agreement Claims under this Agreement, shall be resolved by final and binding arbitration administered by an arbitrator mutually agreed to by the parties (the “Administrative Body”) and if no such agreement as to the Administrative Body is reached by the parties within sixty (60) days after the demand for arbitration by a party, then the Agreement Claims arising out of, in connection with, or in relation to this Agreement or the arbitrability of any Agreement Claims under this Agreement shall be resolved by final and binding arbitration administered by the Oakland County, Michigan offices of JAMS in accordance with the then-existing JAMS Arbitration Rules. The parties shall select a mutually acceptable neutral arbitrator from the panel of arbitrators serving with any of the offices of the Administrative Body mutually agreed to by the parties, or with any of the JAMS’s offices, if applicable, but in the event the parties cannot agree on an arbitrator, the Administrator of Administrative Body or JAMS, as applicable, shall appoint an arbitrator from such panel (the arbitrator so selected or appointed, the “Arbitrator”). The parties expressly agree that the Arbitrator may provide all appropriate remedies (at law and equity) or judgments that could be awarded by a court of law in Delaware, and that, upon good cause shown, the Arbitrator shall afford the parties adequate discovery, including deposition discovery. Except as provided herein, the Federal Arbitration Act shall govern the interpretation, enforcement and all actions pursuant to this Section 33. The Arbitrator shall be bound by and shall strictly enforce the terms of this Section 33 and may not limit, expand or otherwise modify its terms. The Arbitrator shall make a good faith effort to apply the substantive law (and the law of remedies, if applicable) of the state of Delaware, or federal law, or both, as applicable, without reference to its conflict of law provisions. The Arbitrator is without jurisdiction to apply any different substantive law. The Arbitrator shall be bound to honor claims of privilege or work-product doctrine recognized at law, but the Arbitrator shall have the discretion to determine whether any such claim of privilege or work product doctrine applies. The Arbitrator shall render an award and a written, reasoned opinion in support thereof. Subject to the provisions of Section 24, the Arbitrator shall have power and authority to award any appropriate remedy (in law or equity) or judgment that could be awarded by a court of law in Delaware, provided, however, that attorneys’ fees may not be awarded. The award rendered by arbitration shall be final and binding upon the parties, and judgment upon the award may be entered in any court having jurisdiction thereof. Any such judgement shall be subject to full appellate review by a court of law. Neither a party nor the Arbitrator shall disclose the existence, content, or results of any arbitration hereunder without the prior written consent of all parties. Adherence to this dispute resolution process shall not limit the parties’ right to obtain any provisional remedy, including, without limitation, injunctive or similar relief, from any court of competent jurisdiction as may be necessary to protect their rights and interests. Notwithstanding the foregoing sentence, this dispute resolution procedure is intended to be the exclusive method of resolving any Agreement Claims arising out of or relating to this Agreement. Each party shall bear its own fees and expenses with respect to this dispute resolution process and any action related thereto.

 

17

 

 

34.    Reserved.

 

35.    Headings. The descriptive headings contained in this Agreement are provided for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement.

 

36.    Third Party Advisors. Each Majority Stockholder has reviewed with its own legal, financial and accounting advisors this Agreement and the transactions contemplated by this Agreement. Each Majority Stockholder is relying solely on its own such advisors and is not relying the Company or any of its agents, including any statements or representations of the Company or any of its agents except as set forth in this Agreement.

 

37.    Definitions.

 

“Affiliate” means a Person controlled by, controlling or under common control with another Person, and for this purpose, “control” means the power to vote a majority of the voting power of a Person or the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through the ownership of voting securities, by contract or otherwise.

 

18

 

 

“Board” means the board of directors of the Company.

 

“Change of Control” means either: (i) the acquisition of the Company by another entity by means of any transaction or series of related transactions (including, without limitation, any reorganization, merger or consolidation or stock transfer, but excluding any such transaction effected primarily for the purpose of changing the domicile of the Company), unless the Company’s stockholders of record immediately prior to such transaction or series of related transactions hold, immediately after such transaction or series of related transactions, at least fifty percent (50%) of the voting power of the surviving or acquiring entity (provided that the sale by the Company of its securities for the purposes of raising additional funds shall not constitute a Change of Control hereunder); or (ii) a sale of all or substantially all of the assets of the Company, other than such transaction effected primarily for the purpose of changing the domicile of the Company; provided, however, that in the event that any of the Majority Stockholders, any Family Members of any Majority Stockholders, any Relatives of any Majority Stockholders or any Affiliates of any of the foregoing maintain an ownership interest in the Company in excess of 25% of the then outstanding Common Stock, no Change of Control shall be deemed to have occurred.

 

“Common Stock” means the common stock, $0.01 par value of the Company.

 

“Family Member” of a Person shall mean any of the following: (i) any spouse, child, stepchild, parent, stepparent, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law of the Person, above, wherever residing, (ii) any person residing (other than solely as a tenant or employee) in the same household as the Person and (iii) anyone else deemed to be a “family member” under applicable or relevant law, rule or regulation.

 

“Independent Director” means a member of the Board who (1) qualifies as an independent director under applicable laws and regulations, including, but not limited to (A) Delaware law, (B) the independence standards of the NASDAQ and (C) the United States Securities and Exchange Commission, (2) is affirmatively determined to be an independent director by the Governance Committee of the Board, (3) excludes, for the purposes of this Agreement, the Majority Stockholders, any of their respective Relatives, Family Members, or Affiliates, and (4) excludes, for purposes of this Agreement, any Person that is or was a present or past employee or advisor of any company with which any of the Majority Stockholders has been involved and any Person that is, or was in the past, related or affiliated in any way to any of the Majority Stockholders, including, without limitation, any Affiliates of IGT or SP/R.

 

“NASDAQ” means the NASDAQ Stock Market LLC.

 

19

 

 

“Person” means and includes an individual, a general or limited partnership, a limited liability company, a joint venture, a corporation (including any non-profit corporation), an estate, a trust, an unincorporated organization, an association, a government or any department or agency thereof or any entity similar to any of the foregoing.

 

“Relative” means any person who is related by blood, marriage, adoption, convention, law or similar relationship with another Person. A Person’s relatives include (without limitation) his or her spouse, any mother, father, grandmother, grandfather, sister, brother, daughter, son, niece, nephew, or other descendent of the Person or his or her spouse, or any of their respective spouses or descendants, in each case whether related by blood, marriage, adoption, law or otherwise and including (without limitation) “step” relationships (stepfather, stepmother, stepchild and the like) and “in -law relationships (mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in- law, sister-in-law and the like).

 

“Transfer” means a sale, transfer, assignment, gift, bequest or disposition by any other means, whether for value or no value and whether voluntary or involuntary (including, without limitation, by realization upon any Encumbrance or by operation of law or by judgment, levy, attachment, garnishment, bankruptcy or other legal or equitable proceedings). The term “Transferred” and similar iterations thereof shall have a correlative meaning.

 

[Signature page follows]

 

20

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Change of Control, Voting and Restricted Stock Agreement as of the date first above written.

 

	
			SPAR GROUP, INC.

				 
	 	 
	
			By:

				/s/ Fay DeVriese	 
	Name:	Fay DeVriese	 
	Title:	Chief Financial Officer	 

 

 

 

	
			MAJORITY STOCKHOLDERS:

				 
	 	 
	/s/ Robert G. Brown	 
	
			Robert G. Brown

				 
	 	 
	/s/ William H. Bartels	 
	
			William H. Bartels

				 
	 	 

 

	
			SPAR ADMINISTRATIVE SERVICES, INC.

				 
	 	 
	
			By:

				/s/ William H. Bartels	 
	
			Name:           William H. Bartels

				 
	
			Title:  President

				 
	 	 
	 	 
	
			SPAR BUSINESS SERVICES, INC.

				 
	 	 
	
			By:

				/s/ Robert G. Brown	 
	
			Name:           Robert G. Brown

				 
	
			Title:  President

				 

 

 

 

 

SPOUSE CONSENT

(FOR MARRIED NATURAL PERSONS ONLY)

 

The undersigned spouse (“Spouse”) of Robert G. Brown (the “Majority Stockholder”) has read, understands and hereby approves all the terms and conditions of the Change of Control, Voting and Restricted Stock Agreement, dated January 28, 2022 (the “Agreement”), by and among the Majority Stockholder and other Majority Stockholders (as defined therein) party thereto and SPAR Group, Inc., a Delaware corporation (the “Company”), pursuant to which the Majority Stockholder has been granted 600,000 shares of the Company’s convertible preferred non-voting stock (the “Convertible Shares”, and together with any shares of the Company’s common stock issued upon the vesting of the Convertible Shares, the “Shares”).

 

In consideration of the Company granting my spouse the right to receive the Shares under the Agreement, I hereby agree to be irrevocably bound by all the terms and conditions of the Agreement and further agree that any community property interest I may have in the Shares will be similarly bound by the Agreement.

 

In consideration of my grant of this Spousal Consent, the Company hereby does now and forever absolutely, unconditionally and irrevocably release, indemnify and discharge Spouse from any and all claims, demands, rights, actions, suits, proceedings, liabilities, obligations and causes of action of any kind and nature whatsoever (the “Claims”), fixed or contingent, known or unknown, liquidated or unliquidated, that the Company or any Person claiming through or under the Company ever had or now has or hereafter can, shall or may have for, upon or by reason of any matter, cause or event resulting from, arising out of or incurred with respect to, or alleged to result from, arise out of or be incurred with respect to, acts or omissions to act of any nature and kind whatsoever that occurred, in whole or in part, prior to or at the Signing Date, including, without limitation, all matters involving the Company, on one hand, and Spouse, on the other hand.

 

	
			SPAR GROUP, INC.

				 
	 	 
	 	 
	
			By:

				/s/ Fay DeVriese	 
	
			Name: Fay DeVriese

				 
	
			Title: Chief Financial Officer

				 
	 	 
	
			Dated:

				  January 28, 2022	 
	 	 	 
	/s/ Jean Brown	 
	
			Signature of Spouse [Sign Here]

				 
	 	 
	Jean Brown	 
	
			NAME OF SPOUSE [PLEASE PRINT]

				 
	 	 
	 	 
	
			☐

				
			CHECK THIS BOX IF YOU DO NOT HAVE A SPOUSE

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