Document:

aimd_ex102.htm

EXHIBIT 10.2
  
 EXHIBIT A
  
 AINOS, INC.
  
 THIS CONVERTIBLE PROMISSORY NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
  
 CONVERTIBLE PROMISSORY NOTE
  
 	 _US$500,000________ Principal Amount
				 April 11 , 2022

  
 For value received, Ainos, Inc., a Texas corporation (the “Company”), promises to pay to               ASE TEST, INC.____ (the “Holder”), the principal amount of       US$500,000______ (the “Principal Amount”). No interest shall accrue on this Convertible Promissory Note (this “Note”). This Note is issued pursuant to that certain Convertible Note Purchase Agreement dated as of April 11, 2022. This Note is subject to the following terms and conditions.
  
 1. Maturity. Unless converted or repaid pursuant to Section 2 or Section 3, the entire unpaid principal sum of this Note will be payable on March 30, 2027 (the “Maturity Date”). Notwithstanding the foregoing, the entire unpaid principal sum of this Note shall become immediately due and payable upon the commission of any act of bankruptcy by the Company, the execution by the Company of a general assignment for the benefit of creditors, the filing by or against the Company of a petition in bankruptcy or any petition for relief under the federal bankruptcy act or the continuation of such petition without dismissal for a period of ninety (90) days or more, or the appointment of a receiver or trustee to take possession of the property or assets of the Company.
  
 2. Conversion.
  
 (a) Mandatory Conversion. Prior to repayment of this Note, immediately prior to the closing of any public offering of the Company’s common stock as result of which the Company’s common stock will be listed on a Trading Market (the “Uplisting Offering”), the outstanding principal amount of this Note (the “Conversion Amount”) shall be converted into Securities of common stock, $0.01 par value per share (the “Common Stock”) of the Company or such other securities or property for which this Note may become convertible as a result of any adjustment described in Section 2(b) at a price that is eighty percent (80%) of the initial public offering price of the Uplisting Offering (the “Conversion Price”).
  
 In addition to the terms defined elsewhere in this Note, for all purposes of this Note, the following terms shall have the meanings indicated in this Section 2(a):
  
 “Trading Market” means whichever of the New York Stock Exchange, the NYSE MKT, the NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market (or any successors to any of the foregoing) on which the Common Stock is listed or quoted for trading on the date in question.
  
 AINOS, INC. CONVERTIBLE NOTE PURCHASE AGREEMENT 
  
 	 
	Page 1 of 3
	

	 

  
 (b) Adjustment.
  
 (i) In the event of changes in the outstanding Common Stock of the Company by reason of stock dividends, split-ups, recapitalizations, reclassifications, combinations or exchanges of Securities, separations, reorganizations, liquidations, merger, consolidation, acquisition of the Company, or the like, the number, class and type of Securities available upon conversion of this Note and the Conversion Price shall be correspondingly adjusted to give the Holder of the Note, on conversion for the same aggregate Conversion Amount, the total number, class, and type of Securities or other property as the Holder would have owned had the Note been converted prior to the event and had the Holder continued to hold such Securities until the event requiring adjustment. The form of this Note need not be changed because of any such adjustment.
  
 (ii) Upon the occurrence of adjustment pursuant to this Section 2(b), the Company at its expense will, at the written request of the Holder, promptly compute such adjustment in accordance with the terms of this Note and prepare a certificate setting forth such adjustment, including a statement of the adjusted Conversion Price and adjusted number or type of Securities or other securities issuable upon conversion of this Note (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the Company will promptly deliver a copy of such certificate to the Holder.
  
 (c) Mechanics and Effect of Conversion. No fractional Securities of the Company’s Common Stock will be issued upon conversion of this Note. In lieu of any fractional share to which the Holder would otherwise be entitled, the Company will pay to the Holder in cash the amount of the unconverted principal balance of this Note that would otherwise be converted into such fractional share. Upon conversion of this Note pursuant to this Section 2, the Holder shall surrender this Note at the principal offices of the Company. At its expense, the Company will, as soon as practicable thereafter, cause to be issued and delivered to such Holder a certificate or certificates for the number of Securities to which such Holder is entitled upon such conversion or confirmation of book-entry registration of such Securities, together with a check payable to the Holder for any cash amounts payable as described herein. Upon conversion of this Note, the Company will be forever released from all of its obligations and liabilities under this Note with regard to any principal amount.
  
 3. Payment Terms. All payments shall be made in lawful money of the United States of America at such place as the Holder hereof may from time to time designate in writing to the Company.
  
 4. Transfer; Successors and Assigns. The terms and conditions of this Note shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. Notwithstanding the foregoing, the Holder may not assign, pledge, or otherwise transfer this Note without the prior written consent of the Company, except for transfers to affiliates. Subject to the preceding sentence, this Note may be transferred only upon surrender of the original Note for registration of transfer, duly endorsed, or accompanied by a duly executed written instrument of transfer in form satisfactory to the Company. Thereupon, a new convertible promissory note for the same principal amount will be issued to, and registered in the name of, the transferee.
  
 5. Governing Law. This Note and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Texas, without giving effect to principles of conflicts of law.
  
 6. Notices. Any notice required or permitted by this Note shall be in writing and shall be deemed sufficient upon receipt, when delivered personally or by courier, overnight delivery service or confirmed facsimile or e-mail, or forty-eight (48) hours after being deposited in the U.S. mail as certified or registered mail with postage prepaid, if such notice is addressed to the party to be notified at such party’s address, facsimile number or e-mail as set forth below or as subsequently modified by written notice.
  
 7. Amendments and Waivers. Any term of this Note may be amended or waived only with the written consent of the Company and the Holder. Any amendment or waiver effected in accordance with this Section 7 shall be binding upon the Company, the Holder and transferee of this Note.
  
 8. Stockholders, Officers and Directors Not Liable. In no event shall any stockholder, officer or director of the Company be liable for any amounts due or payable pursuant to this Note.
  
 9. Titles and Subtitles. The titles and subtitles used in this Note are used for convenience only and are not to be considered in construing or interpreting this Note.
  
  
 THIS SPACE LEFT INTENTIONALLY BLANK. SIGNATURE PAGE FOLLOWS
  
 AINOS, INC. CONVERTIBLE NOTE PURCHASE AGREEMENT
  
 	 
	Page 2 of 3
	

	 

  
  
 This Note is executed and delivered as of the date first set forth above.
  
 		 COMPANY: 
	  

			  

		 Ainos, Inc., a Texas corporation
 (FORMERLY KNOWN AS AMARILLO BIOSCIENCES, INC.)
	  

				  

		 By:
		  

		 Name:
	 Chung-Hsien Tsai
	  

		 Title: 
	 Chief Executive Officer
	  

  
  
  
 	  
	 HOLDER:
	  

	  
	 ASE TEST, INC.
	  

	  
	  
	  
	  

		 By:
		  

		 Name:
	 Chien Sheng Jasong Chang 
	  

		 Title: 
	 Chairman
	  

	  
	  
	  

	  
	 Principal Amount: __US$500,000___
	  

  
 [Signature Page to Convertible Note]
  
 AINOS, INC. CONVERTIBLE NOTE PURCHASE AGREEMENT
  
 	 
	Page 3 of 3Document

INUVO, INC.
500 President Clinton Avenue, STE 300, Little Rock, Arkansas 72201

Grant Date:
Optionee Name:
Optionee Address:

Congratulations. You have been granted a Nonqualified Stock Option under Inuvo, Inc. 2017 Equity Compensation Plan (the “Plan”) on the following terms:

1.Number of Shares. The number of shares of Common Stock of Inuvo, Inc. (“Shares”) that you may purchase under this Option is:  

2.Exercise Price. The exercise price to purchase Shares under this Option is:  $_______ per Share, the fair market value on the Grant Date.

3.Vesting.  This Option will vest and become exercisable as follows:

4.Lapse. This Option will lapse and cease to be exercisable upon: 

5.Taxation. This Option is a Nonqualified Option.  You will have taxable income upon the exercise of this Option. At that time, you must pay to the Company an amount equal to the required federal, state and local tax withholding less any withholding otherwise made from your salary or bonus. If, for any reason, the Company is unable to withhold all or any portion of the amount required to be withheld, then you (or any person who may exercise this Option) agree to pay an amount equal to the withholding required to be made less the amount actually withheld by the Company. You must satisfy any relevant withholding requirements before the Company issues Shares to you.

6.Exercise. This Option may be exercised by the delivery of this Agreement with the notice of exercise attached hereto properly completed and signed by you to the Secretary of the Company, together with the aggregate Exercise Price for the number of Shares as to which the Option is being exercised, after the Option has become exercisable and before it has ceased to be exercisable. The Exercise Price must be paid  (i) in cash, (ii) by authorizing a third party with which you have a brokerage or similar account to sell the Shares (or a sufficient portion of such Shares) acquired upon the exercise of the Option and remit to the Company a portion of the sale proceeds sufficient to pay the entire Exercise Price to the Company, (iii) by delivering Shares that have an aggregate Fair Market Value on the date of exercise equal to the Exercise Price; (iv) by authorizing the Company to withhold from the total number of Shares as to which the Option is being exercised the number of Shares having a Fair Market Value on the date of exercise equal to the aggregate Exercise Price for the total number of Shares as to which the Option is being exercised, or (v) by any combination of (i), (ii), (iii), and (iv).  In the case of an election pursuant to (i) above, cash shall mean cash or check made payable to Inuvo, Inc.  In the case of payment pursuant to (ii) or (iii) above, your authorization must be made on or prior to the date of exercise and shall be irrevocable.  

7.No Transfer. This Option may not be sold, pledged nor otherwise transferred other than by will or the laws of descent and distribution; and it may only be exercised during your lifetime by you. Notwithstanding the foregoing, you may transfer this Option either (a) to members of your immediate family (as defined in Rule 16a-1 under the Securities Exchange Act of 1934, as amended), to one or more trusts for the benefit of such family members, or to partnerships or other entities in which such family members are the only partners or owners, provided that you do not receive any consideration for the transfer, or (b) with the prior written approval of the committee appointed by the Board of Directors to administer the Plan.  Any option held by a transferee remains subject to the same terms and conditions that applied immediately prior to 

transfer based on the transferor’s continuing relationship with the Company.  This Agreement is neither a negotiable instrument nor a security (as such term is defined in Article 8 of the Uniform Commercial Code).

8.Not An Employment Agreement. This Agreement is not an employment agreement and nothing contained herein gives you any right to continue to be employed by or provide services to the Company or affects the right of the Company to terminate your employment or other relationship with you.

9.Forfeiture Conditions.  Notwithstanding any provision herein to the contrary, in the event of termination of your employment for Cause, the breach of any non-competition or confidentiality restrictions applicable to you, or your participation in an activity that is deemed by the Committee to be detrimental to the Company, (i) your right to exercise any unexercised portion of the Option shall immediately terminate and all rights thereunder shall cease, (ii) your right to receive an issuance of Shares upon settlement of the Option shall immediately terminate, and, (iii) if the Option has been exercised, in whole or in part, then either (A) the Shares issued upon exercise of the Option shall be forfeited and returned to the Company and you shall be repaid the lesser of (x) the then-current Fair Market Value per Share or (y) the Exercise Price paid for such Option Shares, or (B) you will be required to pay to the Company in cash an amount equal to the gain realized by you from the exercise of such Option (measured by the difference between the Fair Market Value of the Option Shares on the date of exercise and the Exercise Price paid by you).

10.Plan Controls. The terms of this Agreement are subject to, and controlled by, the terms of the Plan, as it is now in effect or may be amended from time to time hereafter, which are incorporated herein as if they were set forth in full. Any words or phrases defined in the Plan have the same meanings in this Agreement.  A copy of the Plan is attached to this Agreement.  You should read the entire Plan to familiarize yourself with its terms and conditions. 

11.Miscellaneous. This Agreement sets forth the entire agreement of the parties with respect to the subject matter hereof and it supersedes and discharges all prior agreements (written or oral) and negotiations and all contemporaneous oral agreements concerning such subject matter. This Agreement may not be amended or terminated except by a writing signed by the party against whom any such amendment or termination is sought. If any one or more provisions of this Agreement shall be found to be illegal or unenforceable in any respect, the validity and enforceability of the remaining provisions hereof shall not in any way be affected or impaired thereby. This Agreement shall be governed by the laws of the State of Nevada.

    Please acknowledge your acceptance of this Agreement by signing the enclosed copy in the space provided below and returning it promptly to the Company.

						
		

INUVO, INC.

		

    By:_______________________________    _______________________________

		

             John Pisaris    
             General Counsel and Secretary

		
	Accepted and Agreed to as of
the date first set forth above:
	
	

_____________________________
____________________________________
	
	Optionee Signature	

OPTION EXERCISE FORM

    The undersigned hereby exercises the right to purchase ____________________ shares of Common Stock of Inuvo, Inc. pursuant to the Award Agreement dated ______________under the Inuvo, Inc. 2017 Equity Compensation Plan.

Approved by (President, CEO or
EVP/Secretary):

____________________________________        _____________________________________
Optionee Signature                    Date            Signature                                Date

Sign and complete this Option Exercise Form and deliver it to:

Inuvo, Inc.
Attn: General Counsel and Secretary
500 President Clinton Avenue, STE 300, 
Little Rock, Arkansas 72201

together with the option price in cash (i) in cash, (ii) by authorizing a third party with which you have a brokerage or similar account to sell the Shares (or a sufficient portion of such Shares) acquired upon the exercise of the Option and remit to the Company a portion of the sale proceeds sufficient to pay the entire Exercise Price to the Company, (iii) by delivering Shares that have an aggregate Fair Market Value on the date of exercise equal to the Exercise Price; (iv) by authorizing the Company to withhold from the total number of Shares as to which the Option is being exercised the number of Shares having a Fair Market Value on the date of exercise equal to the aggregate Exercise Price for the total number of Shares as to which the Option is being exercised, or (v) by any combination of (i), (ii), (iii), and (iv).

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00347-of-00352.parquet"}]]