Document:

Exhibit

Exhibit 10.1

 FOURTH AMENDMENT TO CREDIT AGREEMENT

This FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made as of January , 2017 by and among CARBONITE, INC. (the “Borrower”), the Lenders party thereto from time to time, the lenders listed on the signature pages hereto (each a “Lender” and, collectively, the “Lenders”), and SILICON VALLEY BANK (“SVB”), as the Issuing Lender and the Swingline Lender, and SVB, as administrative agent for the Lenders (in such capacity, the “Administrative Agent”). All capitalized terms used but not otherwise defined in this Amendment have the meanings ascribed to them in the Credit Agreement.

W I T N E S S E T H:

WHEREAS, the Borrower, the Lenders and the Administrative Agent are party to that certain Credit Agreement dated as of May 6, 2015, as amended by a First Amendment to Credit Agreement dated as of May 22, 2015, a Second Amendment to Credit Agreement dated as of October 30, 2015 and a Third Amendment to Credit Agreement dated as of July 25, 2016 (as amended, modified, supplemented or restated and in effect from time to time, the “Credit Agreement”); and

WHEREAS, the Borrower has requested that the Lenders and the Administrative Agent agree (i) to an Increase pursuant Section 2.12 of the Credit Agreement in the aggregate amount of $15,000,000 and
(i)to modify and amend certain terms and conditions of the Credit Agreement as provided herein. The Administrative Agent and the sole Lender have agreed to such Increase and to so amend the Credit Agreement, subject to the terms and conditions set forth herein.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and subject to the satisfaction of the conditions to effectiveness described in Section 3 hereof, the Administrative Agent, the Lenders and the Borrower agree as follows:

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

		
	2.
	Amendments to the Credit Agreement.

(a)Section 1.1 (Definitions-definition of “Applicable Margin”). The definition of “Applicable Margin” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

““Applicable Margin”: commencing on the date on which the Administrative Agent receives copies of the consolidated financial statements of the Borrower and its Subsidiaries in respect of the fiscal quarter of the Borrower ending March 31, 2017, together with a Compliance Certificate in respect thereof as contemplated by Section 6.2(b), the rate per annum set forth under the relevant column heading below:

	
			
	Consolidated Leverage Ratio
	Eurodollar Loans
	ABR Loans

	< 2.00:1.00
	1.75%
	0.75%

	> 2.00:1.00
	2.25%
	1.25%

Notwithstanding the foregoing, (a) commencing on the Fourth Amendment Effective Date until the  delivery  of  the  Compliance  Certificate  required  to  be  delivered  pursuant  to  Section  6.2(b)  in

connection with the fiscal quarter of the Borrower ending March 31, 2017, the Applicable Margin shall be the rates corresponding to a Consolidated Leverage Ratio equal to or less than 2.00:1.00 in the foregoing table, (b) if the financial statements required by Section 6.1 and the related Compliance Certificate required by Section 6.2(b) are not delivered by the respective date required thereunder after the end of any related fiscal quarter of the Borrower, 

the Applicable Margin shall be the rates corresponding to a Consolidated Leverage Ratio greater than 2:00:1.00 in the foregoing table until such financial statements and Compliance Certificate are delivered, and (c) no reduction to the Applicable Margin shall become effective at any time when an Event of Default has occurred and is continuing.

If, as a result of any restatement of or other adjustment to the financial statements of the Loan Parties or for any other reason, the Administrative Agent determines that (x) the Consolidated Leverage Ratio as calculated by the Borrower as of any applicable date was inaccurate and (y) a proper calculation of the Consolidated Leverage Ratio would have resulted in different pricing for any period, then (i) if the proper calculation of the Consolidated Leverage Ratio would have resulted in higher pricing for such period, the Borrower shall automatically and retroactively be obligated to pay to the Administrative Agent, for the benefit of the applicable Lenders, promptly on demand by the Administrative Agent, an amount equal to the excess of the amount of interest and fees that should have been paid for such period over the amount of interest and fees actually paid for such period; and (ii) if the proper calculation of the Consolidated Leverage Ratio would have resulted in lower pricing for such period, the Administrative Agent shall credit the next succeeding interest payment(s), for the benefit of the applicable Loan Parties, an aggregate amount equal to the excess of the amount of interest and fees that should have been paid for such period over the amount of interest and fees actually paid for such period.”

(b)Section 1.1 (Definitions-definition of “Available Revolving Increase Amount”). The definition of “Available Revolving Increase Amount” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

““Available Revolving Increase Amount”: as of any date of determination, an amount equal to the result of (a) $25,000,000 minus (b) the Increase in the aggregate amount of $15,000,000 effectuated on the Fourth Amendment Effective Date and minus (c) the aggregate principal amount of Increases to the Revolving Commitments previously made pursuant to Section 2.12 after the Fourth Amendment Effective Date.”

(c)Section 1.1 (Definitions-definition of “Consolidated Current Liabilities”).  The definition of “Consolidated Current Liabilities” in Section 1.1 of the Credit Agreement is hereby deleted in its entirety.

(d)Section 1.1 (Definitions-definition of “Consolidated EBITDA”). Section 1.1 of  the Credit Agreement is hereby amended by the addition of a definition of “Consolidated EBITDA” reading as follows:

““Consolidated EBITDA”: with respect to the Borrower and its consolidated Subsidiaries for any period, (a) the sum, without duplication, of the amounts for such period of (i) Consolidated Net Income, plus (ii) Consolidated Interest Expense, plus (iii) provisions for taxes based on income, plus (iv) total depreciation expense, plus (v) total amortization expense, plus (vi) other one-time non-cash items reducing Consolidated Net Income (excluding any such non-cash item to the extent that it represents an accrual or reserve for potential cash items in any future period or amortization of a prepaid cash item that was paid in a prior period) approved by the Administrative Agent and the Required Lenders in writing as an ‘add back’ to Consolidated EBITDA, plus (vii) one-time cash items reducing Consolidated Net Income for legal expenses, restructuring expenses and acquisition expenses, in each case approved by the Administrative Agent and the Required Lenders in writing as an ‘add back’ to Consolidated EBITDA, plus (viii) stock based compensation expense, minus (b) the sum, without duplication of the amounts for such period of (i) other non-cash items increasing Consolidated Net Income for such period (excluding any such non-cash item to the extent it represents the reversal of an accrual or reserve for potential cash item in any prior period), plus (ii) interest income plus (c) expenses incurred in connection with Permitted Acquisitions, restructurings and other transactions outside of the ordinary course of business provided that add-backs pursuant to this clause (c) shall not exceed 15% of the sum of clauses (a) and (b) (as determined in accordance with this definition) in any consecutive period of twelve (12) months.”

(e)Section 1.1 (Definitions-definition of “Consolidated Fixed Charge Ratio”). Section 1.1 of the Credit Agreement is hereby amended by the addition of a definition of “Consolidated Fixed Charge Ratio” reading as follows:

““Consolidated Fixed Charge Coverage Ratio”: with respect to the Borrower and its consolidated 

Subsidiaries for any period, the ratio of (a) the sum of (i) Consolidated EBITDA for such period minus (ii) the portion of taxes based on income actually paid in cash (net of any cash refunds received) during such period minus (iii) Consolidated Capital Expenditures (excluding the principal amount funded with the Loans) incurred in connection with such expenditures) to (b) Consolidated Fixed Charges for such period.”

(f)Section 1.1 (Definitions-definition of “Consolidated Fixed Charges”). Section 1.1 of the Credit Agreement is hereby amended by the addition of a definition of “Consolidated Fixed Charges” reading as follows:

““Consolidated Fixed Charges”: with respect to the Borrower and its consolidated Subsidiaries for any period, the sum (without duplication) of (a) Consolidated Interest Expense for such period, plus
(a)scheduled payments made during such period on account of principal of Indebtedness of the Borrower and its consolidated Subsidiaries.

(a)Section 1.1 (Definitions-definition of “Consolidated Interest Expense”). Section 1.1 of the Credit Agreement is hereby amended by the addition of a definition of “Consolidated  Interest Expense” reading as follows:

““Consolidated Interest Expense”: for any period, total interest expense (including that attributable to Capital Lease Obligations) of the Borrower and its consolidated Subsidiaries for such period with respect to all outstanding Indebtedness of such Persons (including all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing and net costs under Swap Agreements in respect of interest rates to the extent such net costs are allocable to such period in accordance with GAAP).”

(b)Section 1.1 (Definitions-definition of “Consolidated Leverage Ratio”). Section 1.1 of the Credit Agreement is hereby amended by the addition of a definition of “Consolidated Leverage Ratio” reading as follows:

““Consolidated Leverage Ratio”: as at the last day of any period, the ratio of (a) Consolidated Total Indebtedness on such day, to (b) Consolidated EBITDA for such period.”

(c)Section 1.1 (Definitions-definition of “Consolidated Net Income”). Section 1.1 of the Credit Agreement is hereby amended by the addition of a definition of “Consolidated Net Income” reading as follows:
““Consolidated Net Income”: for any period, the consolidated net income (or loss) of the Borrower and its consolidated Subsidiaries, determined on a consolidated basis in accordance  with GAAP.”

(d)Section 1.1 (Definitions-definition of “Consolidated Quick Assets”). The definition of “Consolidated Quick Assets” in Section 1.1 of the Credit Agreement is hereby deleted in its entirety.

(e)Section 1.1 (Definitions-definition of “Consolidated Quick Ratio”). The definition of “Consolidated Quick Ratio” in Section 1.1 of the Credit Agreement is hereby deleted in its entirety.

(f)Section 1.1 (Definitions-definition of “Consolidated Total Indebtedness”). Section 1.1 of the Credit Agreement is hereby amended by the addition of a definition of “Consolidated Total Indebtedness” reading as follows:

“Consolidated Total Indebtedness”: at any date, the aggregate principal amount of all Indebtedness of the Borrower and its consolidated Subsidiaries at such date, determined on a consolidated basis in accordance with GAAP.”

(g)Section 1.1 (Definitions-definition of “Fourth Amendment Effective Date”). Section 1.1 of the Credit Agreement is hereby amended by the addition of a definition of “Fourth Amendment Effective Date” reading as follows:

““Fourth Amendment Effective Date”: As defined in the Fourth Amendment to Credit Agreement dated as of January , 2017 by and among the Administrative Agent, the Borrower and the Lenders.”

(h)Section 1.1 (Definitions-definition of “Total Revolving Commitments”). The definition of “Total 

Revolving Commitments” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

““Total Revolving Commitments”: at any time, the aggregate amount of the Revolving Commitments then in effect. The amount of the Total Revolving Commitments on the Fourth Amendment Effective Date is $40,000,000. The L/C Commitment and the Swingline Commitment are each sublimits of the Total Revolving Commitments. ”

(i)Schedule 1.1A.  Schedule 1.1A to the Credit Agreement is hereby amended and restated in its entirety to read as set forth on Exhibit 1 to this Amendment.

(j)References to Total Revolving Commitments. The references to “$25,000,000” on the cover page of the Credit Agreement and in the second recital (second “Whereas clause”) to the Credit Agreement are hereby amended to read “40,000,000”.

(k)Amendments to Sections 7.1. Section 7.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

“7.1 Financial Condition Covenants.

“(a)    Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as at the last day of any period of twelve consecutive months of the Borrower ending on the last day of any fiscal quarter (commencing with the fiscal quarter ending March 31, 2017) to exceed 2.50:1.00.
(b)    Consolidated Fixed Charge Ratio.  Permit the Consolidated Fixed Charge Ratio as at the last day of any period of twelve consecutive months of the Borrower ending on the last day of any fiscal quarter (commencing with the fiscal quarter ending March 31, 2017)  to be less than 3.50:1.00.”

(l)Amendment to Sections 7.7(l)(xi). Section 7.7(l)(xi) of the Credit Agreement is hereby amended by the addition of the following parenthetical clause at the end thereof:

“(other than the requirements of clause (v) of this paragraph 7.1(l), which requirements shall be satisfied on or prior to the date that is sixty (60) days after the date of the consummation of such purchase or other acquisition.”

3.Conditions Precedent to Effectiveness. This Amendment shall not be effective until each of the following conditions precedent have been fulfilled or waived prior to or concurrently herewith, each to the satisfaction of the Administrative Agent (the date on which the following shall occur, the “Fourth Amendment Effective Date”);

(a)The Administrative Agent shall have received from the Borrower and the sole Lender duly executed original (or, if elected by the Administrative Agent, executed facsimiles followed promptly by executed originals) counterparts of this Amendment.

		
	(b)
	All necessary consents and approvals to this Amendment shall have been obtained.

(c)No Default or Event of Default shall have occurred and be continuing, both before and immediately after giving effect to the execution of this Amendment.

(d)After giving effect to this Amendment, each of the representations and warranties made by each Loan Party in or pursuant to any Loan Document (i) that is qualified by materiality shall be true and correct, and (ii) that is not qualified by materiality, shall be true and correct in all material respects, in each case, on and as of such date as if made on and as of such date, except to the extent any such representation and warranty expressly relates to an earlier date, in which case such representation and warranty shall have been true and correct in all material respects as of such earlier date.

		
	(e)
	The Lenders and the Administrative Agent shall have received an amendment fee of

$45,000 and payment of all reasonable and documented out-of-pocket expenses in connection with the preparation, negotiation, execution and delivery of this Amendment and any documents and instruments relating hereto as set forth in Section 10.5 of the Credit Agreement.

4.Representations and Warranties. The Borrower hereby represents and warrants to the Administrative Agent and the Lenders, as to itself, each of its Subsidiaries and each other Loan Party, as applicable, that:

(a)It has all requisite power and authority to enter into this Amendment and to carry out the transactions contemplated hereby.

(b)The execution, delivery, and performance of this Amendment (i) have been duly authorized by all necessary organizational action, and (ii) do not and will not (A) violate any material Requirement of Law binding on it or its Subsidiaries, (B) violate any material Contractual Obligation of any Group Member, or (C) result in or require the creation or imposition of any Lien upon any properties or revenues of any Group Member pursuant to any material Requirement of Law or any such material Contractual Obligation (other than Liens created by the Security Documents).

(c)No Governmental Approval or consent or authorization of, filing with, notice to or other act by or in respect of, any other Person is required in connection with the execution, delivery and performance by it of this Amendment, other than authorizations or approvals that have been obtained or made and that are still in force and effect.

(d)This Amendment has been duly executed and delivered by it and is a legally valid and binding obligation of it, enforceable against it in accordance with its terms, except as enforcement may be limited by equitable principles (whether enforcement is sought by proceedings in equity or law) or by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally.

(e)No Default or Event of Default exists as of the date of the effectiveness of this Amendment or immediately before or immediately after giving effect to the amendments contemplated in Section 2 above.

(f)The representations and warranties set forth in this Amendment, the Credit Agreement (as amended by this Amendment), and the transactions contemplated hereby, and set forth in the other Loan Documents to which it is a party, are true and correct in all material respects on and as of the date hereof, as though made on such date (except to the extent that such representations and warranties (x) relate solely to an earlier date, in which case they shall have been true and correct in all material respects as of such earlier date or (y) are qualified by materiality in the text thereof, in which case they should be true and correct in all respects).

5.Choice of Law. This Amendment and the rights and obligations of the parties under this Amendment shall be governed by, and construed and interpreted in accordance with, the law of the State of New York.

6.Counterpart Execution. This Amendment may be executed in any number of counterparts, all of which when taken together shall constitute one and the same instrument, and any of the parties hereto may execute this Amendment by signing any such counterpart. Delivery of an executed counterpart of this Amendment by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment by telefacsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Amendment, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment.

		
	7.
	Effect on Loan Documents.

(a)The Credit Agreement and each of the other Loan Documents, as amended hereby, shall be and remain in full force and effect in accordance with their respective terms and hereby are ratified and confirmed in all respects. 

The execution, delivery, and performance of this Amendment shall not operate, except as expressly set forth herein, as a modification or waiver of any right, power, or remedy of the Administrative Agent or any Lender under the Credit Agreement or any other Loan Document. Except as expressly set forth herein, the Credit Agreement and other Loan Documents shall remain unchanged and in full force and effect. The amendments, consents, modifications and other agreements set forth herein are limited to the specifics hereof, shall not apply with respect to any facts or occurrences other than those on which the same are based, and except as expressly set forth herein, shall neither excuse any future non- compliance with the Credit Agreement or any other Loan Document, nor operate as a waiver of any Default or Event of Default.

(b)The Borrower acknowledges and agrees that neither the execution nor the delivery by the Administrative Agent or the Lenders of this Amendment shall (a) be deemed to create a course of dealing or otherwise obligate the Administrative Agent or the sole Lender to grant other modifications of the terms of the Credit Agreement under the same or similar circumstances in the future, or (b) be deemed to create an implied waiver of any right or remedy of the Administrative Agent or the Lenders with respect to any term or provision of any Loan Document (including any term or provision relating to  the occurrence of a Material Adverse Effect).

(c)Upon and after the Fourth Amendment Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “herein”, “hereof” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to “the Credit Agreement”, “thereunder”, “therein”, “thereof” or words of like import referring to the Credit Agreement, shall mean and be a reference to the Credit Agreement as modified and amended hereby.

(d)To the extent that any terms and conditions in any of the Loan Documents shall contradict or be in conflict with any terms or conditions of the Credit Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed modified or amended accordingly to reflect the terms and conditions of the Credit Agreement and the Loan Documents as modified or amended hereby.

		
	(e)
	This Amendment is a Loan Document.

(f)Unless the context of this Amendment clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the terms “includes” and “including” are not limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented by the phrase “and/or”.

8.Entire Agreement. This Amendment, and terms and provisions hereof, the Credit Agreement and the other Loan Documents constitute the entire understanding and agreement between the parties hereto with respect to the subject matter hereof and supersedes any and all prior or contemporaneous amendments or understandings with respect to the subject matter hereof, whether express or implied, oral or written and is the final expression and agreement of the parties hereto with respect to the subject matter hereof.

9.Reaffirmation of Obligations. Each of the Loan Parties hereby restates, ratifies and reaffirms its obligations under each Loan Document to which it is a party, effective as of the date hereof and amended hereby. The Loan Parties hereby further ratify and reaffirm the validity and enforceability of all of the Liens heretofore granted, pursuant to and in connection with the Guarantee and Collateral Agreement or any other Loan Document to the Administrative Agent on behalf and for the benefit of the Lenders and the Issuing Lender, as collateral security for the obligations under the Loan Documents, in accordance with their respective terms, and acknowledges that all of such Liens, and all collateral heretofore pledged as security for such obligations, continues to be and remain collateral for such obligations from and after the date hereof.

10.Severability. In case any provision in this Amendment shall be invalid, illegal or unenforceable, such provision shall be severable from the remainder of this Amendment and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

11.Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and to the benefit of their respective successors and assigns. No third party beneficiaries are intended in 

connection with this Amendment.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the parties have executed this Amendment by their respective duly authorized officers.

	
						
	 
	 
	BORROWER: CARBONITE, INC.

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Anthony Folger
	 

	 
	 
	Name:
	Anthony Folger
	 

	 
	 
	Title:
	Chief Financial Officer
	 

ADMINISTRATIVE AGENT AND LENDERS:

	
						
	 
	 
	SILICON VALLEY BANK,

	 
	 
	as Administrative Agent, Issuing Lender, Swingline Lender and as a Lender

	 
	 
	 
	 
	 
	 

	 
	 
	By:
	/s/ Frank Groccia
	 

	 
	 
	Name:
	Frank Groccia
	 

	 
	 
	Title:
	Vice President
	 

Acknowledged and Agreed:

	
					
	CARBONITE SECURITIES CORPORATION, as a Guarantor

	 
	 
	 
	 
	 

	By:
	/s/ Anthony Folger
	 
	 

	Name:
	Anthony Folger
	 
	 

	Title:
	DirectorExhibit 10.1

 

THIS NOTE, AND THE SHARES OF COMMON
STOCK ISSUABLE UPON CONVERSION OF THIS NOTE (THE “SECURITIES”) HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY
AND MAY NOT BE TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”
OR THE “SECURITIES ACT”) SHALL HAVE BECOME EFFECTIVE WITH RESPECT THERETO OR (ii) RECEIPT BY THE COMPANY OF
AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE ACT IS NOT REQUIRED IN CONNECTION
WITH SUCH PROPOSED TRANSFER NOR IS IN VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS. THIS LEGEND SHALL BE ENDORSED UPON ANY
NOTE ISSUED IN EXCHANGE FOR THIS NOTE AND ANY SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE (EXCEPT AS OTHERWISE PROVIDED BELOW).

 

NON-RECOURSE SECURED CONVERTIBLE PROMISSORY
NOTE

 

Effective January 20, 2017

 

FOR
VALUE RECEIVED, Panther Biotechnology, Inc., a Nevada corporation (the “Company”), hereby
promises to pay to the order of Rob Estell, an individual and/or permitted assigns (the “Holder”),
the aggregate principal amount of $300,000 (the “Principal”), upon the terms and conditions hereinafter
set forth. This Non-Recourse Secured Convertible Promissory Note is defined herein as the “Note” or the
“Promissory Note”. The “Effective Date” of this Note shall be January 20, 2017.
The repayment of this Note is secured by the terms of that certain Security and Pledge Agreement by
Company in favor of Holder dated on or around the date hereof (the “Security Agreement”), a copy of which
is attached as Exhibit A hereto. Upon the occurrence of any Event of Default by Company hereunder, the Holder may take action
to enforce the Security Interest provided for in the Security Agreement in connection with the Collateral (as defined therein)
secured by the Security Agreement.

 

1.              
Payment Terms. The Company shall have no obligation to pay the Principal in cash and instead, the Principal amount
hereof shall automatically convert into shares of common stock of the Company (“Common Stock”), as set
forth in Section 3 hereof. The Principal shall not accrue interest.

 

2.              
Prepayment. This Note may be prepaid by the Company in whole or part by the Company by payment of the Principal
outstanding under this Note, or any portion thereof, in cash to Holder at any time.

 

3.              
Automatic Conversions of this Note.

 

(a)              
Beginning on the first Business Day which falls thirty (30) days after the Beginning Conversion Date (the day of such applicable
month being defined herein the “Monthly Conversion Day”), and continuing each calendar month thereafter
on the first Business Day to occur after the applicable Monthly Conversion Day, until the Principal amount of this Note is (i)
fully converted into Common Stock pursuant to this Section 3 or (ii) fully repaid by the Company in cash, a portion of the
Principal shall automatically convert into that number of shares of Common Stock as equals the lesser of (A) the Monthly Conversion
Amount divided by the Conversion Price; and (B) the Maximum Percentage (each as applicable, a “Monthly Conversion”
and the shares of Common Stock issuable in connection with each Monthly Conversion, the “Monthly Shares”).
“Business Day” means a day other than (i) a Saturday, (ii) a Sunday or (iii) a day on which commercial
banks in the City of Houston, Texas are authorized or required to be closed for business. The “Monthly Conversion Amount”
means ten percent (10%) of the total volume of the Company’s Common Stock on the Principal Market for the thirty (30) days
prior to such applicable Monthly Conversion Day (as reported by otcmarkets.com or if the Common Stock is not traded on the OTC
Market, Nasdaq.com) multiplied by the Conversion Price. The “Conversion Price” equals $0.50 per share
of Common Stock. The “Principal Market” means initially the OTC Pink market and shall also include the
OTCQB Market, the NASDAQ Capital Market, the New York Stock Exchange, NYSE MKT, or the NASDAQ National Market, whichever is at
the time the principal trading exchange or market for the Common Stock, based upon share volume.

 

 

 

 

    	 	1	 

     

    

 

(b)              
The “Beginning Conversion Date” means the earlier to occur of (a) the one year anniversary of
the Effective Date; and (b) the date the Company, in its sole discretion, provides.

 

(c)              
On the first Business Day on or following, the second anniversary of the Effective Date, the then remaining Principal amount
of this Note shall automatically convert (the “Final Conversion” and together with each Monthly Conversion,
a “Conversion”) into that number of shares of Common Stock as equals the remaining Principal balance
hereof on such date, divided by the Conversion Price, without regard for the Maximum Percentage (the “Final Shares”
and together with the Monthly Shares, the “Shares”).

 

(d)              
Following each Conversion, the Company shall issue to the Holder all Shares which such Holder is due in connection with
such Conversion and promptly deliver such Shares to the address of Holder which the Company then has on record. The Shares issuable
in connection with a Conversion shall be fully-paid, non-assessable shares of Common Stock. Unless the Holder provides a valid
opinion from an attorney stating that such Shares can be issued free of restrictive legend, which shall be determined by the Company
in its sole discretion, prior to the issuance date of such Shares, such Shares shall be issued with a restrictive legend.

 

(e)              
Notwithstanding anything to the contrary set forth herein, upon Conversion of this Note in accordance with the terms hereof
the Holder shall not be required to physically surrender this Note to the Company unless the entire unpaid principal amount of
this Note is so Converted, provided further that the Holder’s failure to so deliver this Note shall in no way effect any
such Conversion. The Company shall maintain records showing the principal amount so Converted and the dates of such Conversions,
so as not to require physical surrender of this Note upon each such Conversion. In the event of any dispute or discrepancy, such
records of the Company shall be controlling and determinative in the absence of manifest error. Notwithstanding the foregoing,
if any portion of this Note is Converted as aforesaid, the Holder may not transfer this Note unless the Holder first physically
surrenders this Note to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new
Note of like tenor, registered as the Holder (upon payment by the Holder of any applicable transfer taxes) may request, representing
in the aggregate the remaining unpaid Principal amount of this Note. The Holder and any assignee, by acceptance of this Note, acknowledge
and agree that, by reason of the provisions of this paragraph, following Conversion of a portion of this Note, the unpaid and unconverted
Principal amount of this Note represented by this Note may be less than the amount stated on the face hereof.

 

(f)               
The Company shall be authorized to take whatever action necessary, if any, following the issuance and delivery of the Shares
evidencing the final Conversion of this Note to reflect the cancellation of the Note, which shall not require the approval and/or
consent of Holder, and provided that by agreeing to the terms and conditions of this Note and the acceptance of the Note, Holder
hereby agrees to release the Company from any and all liability whatsoever in connection with the cancellation of the Note following
the final Conversion, regardless of the return to the Company of any documentation representing or evidencing the Note (a “Cancellation”).

 

 

 

 

    	 	2	 

     

    

 

(g)              
Notwithstanding the above, Holder, by accepting this Note hereby covenants that it will, whenever and as reasonably requested
by the Company, at its sole cost and expense, do, execute, acknowledge and deliver any and all such other and further acts, deeds,
assignments, transfers, conveyances, confirmations, powers of attorney and any instruments of further assurance, approvals and
consents as the Company may reasonably require in order to complete, insure and perfect the Cancellation, if such may be reasonably
required by the Company.

 

(h)              
Conversion calculations pursuant to this Section 3, shall be rounded to the nearest whole share of Common Stock,
and no fractional shares shall be issuable by the Company upon conversion of this Note.

 

(i)                
 If the Company at any time or from time to time on or after the Effective Date of the issuance of this Note (the “Original
Issuance Date”) effects a subdivision of its outstanding Common Stock, the Conversion Price then in effect immediately
before that subdivision shall be proportionately decreased, and conversely, if the Company at any time or from time to time on
or after the Original Issuance Date combines its outstanding shares of Common Stock into a smaller number of shares, the Conversion
Price then in effect immediately before the combination shall be proportionately increased.

 

(j)                
On the date of any Conversion, all rights of any Holder with respect to the amount of this Note converted, will terminate,
except only for the rights of any such Holder to receive certificate(s) (if applicable) for the number of Shares which this Note
has been Converted.

 

(k)              
Except in connection with the Final Conversion, which shall not be subject to this Section 3(k), the applicable portion
of this Note shall not be convertible during any time that, and only to the extent that, the number of Shares to be issued to Holder
upon such Conversion, when added to the number of shares of Common Stock, if any, that the Holder otherwise beneficially owns (outside
of this Note, and not including any other securities of the Company held by Holder having a provision substantially similar to
this paragraph) at the time of such Conversion, would exceed 4.99% (the “Maximum Percentage”) of the
number of shares of Common Stock of the Company outstanding immediately after giving effect to the issuance of shares of Common
Stock issuable upon Conversion of this Note held by the Holder, as determined in accordance with Section 13(d) of the Securities
Exchange Act of 1934, as amended (the “Beneficial Ownership Limitation”). The provisions of this paragraph
shall not be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 3(k)
to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership
Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.

 

4.              
Representations and Warranties of the Company. The Company represents and warrants to Holder as follows:

 

(a)              
The execution and delivery by the Company of this Note (i) are within the Company’s corporate power and authority,
and (ii) have been duly authorized by all necessary corporate action. Further, the undersigned is a duly authorized representative
of the Company who has been authorized by a resolution of the Board of Directors to exercise any and all documents necessary to
effectuate the transaction contemplated hereby.

 

 

 

 

 

    	 	3	 

     

    

 

(b)              
This Note is a legally binding obligation of the Company, enforceable against the Company in accordance with the terms hereof,
except to the extent that (i) such enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws
relating to or affecting generally the enforcement of creditors’ rights, and (ii) the availability of the remedy of specific
performance or injunctive or other equitable relief is subject to the discretion of the court before which any proceeding therefore
may be brought.

 

5.              
Events of Default. If an Event of Default (as defined herein or below) occurs (unless all Events of Default have
been cured or waived by Holder), Holder may, by written notice to the Company, take any and all actions provided for in the Security
Agreement. The following events shall constitute events of default (“Events of Default”) under this Note,
and/or any other Events of Default defined elsewhere in this Note shall occur:

 

(a)              
the Company shall have breached in any respect any material covenant in this Note, and, with respect to breaches capable
of being cured, such breach shall not have been cured within ten (10) days following the receipt of written notice of such breach
by the Holder to the Company; or

 

(b)              
the Company shall: (i) make an assignment for the benefit of creditors, file a petition in bankruptcy, petition or apply
to any tribunal for the appointment of a custodian, receiver or a trustee for it or a substantial portion of its assets; (ii) commence
any proceeding under any bankruptcy, reorganization, arrangement, readjustment of debt, dissolution or liquidation or statute of
any jurisdiction, whether now or hereafter in effect; (iii) have filed against it any such petition or application in which an
order for relief is entered or which remains undismissed for a period of ninety (90) days or more; (iv) indicate its consent to,
approval of or acquiescence in any such petition, application, proceeding or order for relief or the appointment of a custodian,
receiver or trustee for it or a substantial portion of its assets; or (v) suffer any such custodianship, receivership or trusteeship
to continue undischarged for a period of ninety (90) days or more; or

 

(c)              
the Company shall take any action authorizing, or in furtherance of, any of the foregoing.

 

In case any one or
more Events of Default shall occur and be continuing and Holder has provided the Company written notice of such Event of Default,
Holder may proceed to protect and enforce its rights to the Security Interest in the Collateral as defined in the Security Agreement
entered into by the parties together herewith, but shall not have any other rights hereunder or any other recourse against the
Company or its assets.

 

6.              
Certain Waivers by the Company. Except as expressly provided otherwise in this Note, the Company and every endorser
or guarantor, if any, of this Note waive presentment, demand, notice, protest and all other demands and notices in connection with
the delivery, acceptance, performance, default or enforcement of this Note, and assent to any extension or postponement of the
time of payment or any other indulgence, to any substitution, exchange or release of collateral available to Holder, if any, and
to the addition or release of any other party or person primarily or secondarily liable.

 

7.              
Assignment and Transfer by Holder. If and whenever this Note shall be assigned and transferred, or negotiated,
including transfers to substitute or successor trustees, in each case subject to applicable law and the availability of an exemption
from registration for such transfer, which shall be approved by the Company subject to the Holder providing the Company a legal
opinion for such transfer, which opinion shall be reasonably accepted by the Company, the holder hereof shall be deemed the “Holder”
for all purposes under this Note.

 

 

 

 

    	 	4	 

     

    

 

8.              
Amendment. This Note may not be changed orally, but only by an agreement in writing, signed by the party against
whom enforcement of any waiver, change, modification or discharge is sought.

 

9.              
Governing Law. It is the intention of the parties hereto that the terms and provisions of this Note are to be
construed in accordance with and governed by the laws of the State of Texas, except as such laws may be preempted by any federal
law controlling the rate of interest which may be charged on account of this Note.

 

10.          
Construction. When used in this Note, unless a contrary intention appears: (i) a term has the meaning assigned
to it; (ii) “or” is not exclusive; (iii) “including” means including without
limitation; (iv) words in the singular include the plural and words in the plural include the singular, and words importing the
masculine gender include the feminine and neuter genders; (v) any agreement, instrument or statute defined or referred to herein
or in any instrument or certificate delivered in connection herewith means such agreement, instrument or statute as from time to
time amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments thereto
and instruments incorporated therein; (vi) the words “hereof”, “herein” and
“hereunder” and words of similar import when used in this Note shall refer to this Note as a whole and
not to any particular provision hereof; (vii) references contained herein to Article, Section, Schedule and Exhibit, as applicable,
are references to Articles, Sections, Schedules and Exhibits in this Note unless otherwise specified; (viii) references to “writing”
include printing, typing, lithography and other means of reproducing words in a visible form, including, but not limited to email;
(ix) references to “dollars”, “Dollars” or “$” in
this Note shall mean United States dollars; (x) reference to a particular statute, regulation or Law means such statute, regulation
or Law as amended or otherwise modified from time to time; (xi) any definition of or reference to any agreement, instrument or
other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein);
(xii) unless otherwise stated in this Note, in the computation of a period of time from a specified date to a later specified date,
the word “from” means “from and including” and the words “to”
and “until” each mean “to but excluding”; (xiii) references to “days”
shall mean calendar days; and (xiv) the paragraph headings contained in this Note are for convenience only, and shall in no manner
be construed as part of this Note.

 

11.          
No Third Party Benefit. The provisions and covenants set forth in this Note are made solely for the benefit of
the parties to this Note and are not for the benefit of any other person, and no other person shall have any right to enforce these
provisions and covenants against any party to this Note.

 

12.          
Jurisdiction, Venue and Jury Trial Waiver. The parties hereby consent and agree that, in any actions predicated
upon this Note, venue is properly laid in Texas and that the Circuit Court in and for Harris County, Texas, shall have full subject
matter and personal jurisdiction over the parties to determine all issues arising out of or in connection with the execution and
enforcement of this Note.

 

13.          
WAIVER OF JURY TRIAL. THE COMPANY AND HOLDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT
EITHER MAY HAVE TO TRIAL BY JURY IN RESPECT TO ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
NOTE AND ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS,
(WHETHER VERBAL OR WRITTEN) OR ACTIONS OF EITHER PARTY. THE COMPANY ACKNOWLEDGES THAT THIS WAIVER OF JURY TRIAL IS A MATERIAL INDUCEMENT
TO THE HOLDER IN EXTENDING CREDIT TO THE COMPANY, THAT THE HOLDER WOULD NOT HAVE EXTENDED SUCH CREDIT WITHOUT THIS JURY TRIAL WAIVER,
AND THAT THE COMPANY HAS BEEN REPRESENTED BY AN ATTORNEY OR HAS HAD AN OPPORTUNITY TO CONSULT WITH AN ATTORNEY IN CONNECTION WITH
THIS JURY TRIAL WAIVER AND UNDERSTANDS THE LEGAL EFFECT OF THIS WAIVER.

 

 

 

 

 

 

 

 

    	 	5	 

     

    

 

14.          
Non-Recourse. The obligations of the Company under this Note are non-recourse obligations. If the Company fails
to comply with any of the provisions of this Note or an Event of Default occurs hereunder, the Holder’s sole remedy shall
be to obtain the Collateral (as defined in the Security Agreement), and the Company shall have no further obligation to the Holder
under this Note or otherwise. In furtherance thereof, Holder agrees that for payment of this Note it will look solely to the Collateral
or such other collateral, if any, it may now or hereafter be given to secure the payment of this Note, and no other assets of the
Company shall be subject to levy, execution or other enforcement procedure for the satisfaction of the remedies of Holder, or for
any payment required to be made under this Note. By accepting this Note, the Holder agrees that the Collateral and the rights thereto
if assumed by the Holder upon the default hereof and pursuant to the terms of the Security Agreement shall fully discharge all
of the Company’s obligations hereunder.

 

15.          
Notices. Any and all notices, requests or other communications hereunder shall be given in writing and delivered
by: (a) regular, overnight or registered or certified mail (return receipt requested), with first class postage prepaid; (b) hand
delivery; (c) facsimile transmission; or (d) overnight courier service, to the parties at the addresses or facsimile numbers set
forth on the signature page hereof or at such other address or number as shall be designated by either of the parties in a notice
to the other party given in accordance with this Section 15, provided that at least ten (10) days prior written notice shall
be given for any change. Except as otherwise provided in this Note, all such communications shall be deemed to have been duly given:
(A) in the case of a notice sent by regular or registered or certified mail, three business days after it is duly deposited in
the mails; (B) in the case of a notice delivered by hand, when personally delivered; (C) in the case of a notice sent by facsimile,
upon transmission subject to telephone confirmation of receipt; and (D) in the case of a notice sent by overnight mail or overnight
courier service, the next business day after such notice is mailed or delivered to such courier, in each case given or addressed
as aforesaid.

 

16.          
Severability. If any term or other provision of this Note is invalid, illegal or incapable of being enforced
by any rule of law, or public policy, all other conditions and provisions of this Note shall nevertheless remain in full force
and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse
to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the
parties hereto shall negotiate in good faith to modify this Note so as to affect the original intent of the parties as closely
as possible in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the extent possible.

 

17.          
Entire Agreement. This Note and the Security Agreement constitute the sole and only agreement of the parties
hereto and supersedes any prior understanding or written or oral agreements between the parties respecting the subject matter hereof.

 

 

 

[Remainder of page left intentionally blank.
Signature page follows.]

 

 

 

 

 

 

 

 

    	 	6	 

     

    

 

IN WITNESS WHEREOF,
the undersigned has caused this Non-Recourse Secured Convertible Promissory Note to be executed and delivered as of the date first
above written, to be effective as of the Effective Date set forth above.

 

“Company”

 

Panther Biotechnology,
Inc.

 

 

 

/s/ Evan Levine                                        

Evan Levine

Chief Executive Officer

 

Address For Notice:

 

1517 San Jacinto Street

Houston, Texas 77002 

 

 

 

“Holder”

 

 

 

 

/s/ Rob Estell                                      

Rob Estell

 

Address For Notice:

 

4400 Sample Road

Coconut Creek, Florida 33073

 

 

 

 

 

 

 

 

 

    	 	7

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