Document:

Exhibit
10.25

 

May
2, 2020

 

Inspyr
Therapeutics, Inc.

31200
Via Colinas #200

Westlake
Village, CA 91362

 

		Re:	Inspyr
Therapeutics, Inc. - Subscription for Shares of Series E Preferred Stock

 

Ladies
and Gentlemen:

 

The
undersigned hereby acknowledges and agrees to the following:

 

1.
The undersigned hereby subscribes for shares totaling an aggregate consideration of $5,000 of Series E Convertible Preferred
Stock, par value $0.0001 per share (“Preferred Stock”), of Inspyr Therapeutics, Inc., a Delaware corporation (the
“Corporation”), at a price per share equal to $1.00. The Preferred Stock shall have (i) a stated value of
$1.00 per share, (ii) be convertible into common stock, par value $0.0001 of the Corporation at an initial conversion price
per share of $0.01, and (iii) such rights and preferences as contained in the Certificate of Designation of Series E
Convertible Preferred Stock (“COD”), filed with the Delaware Secretary of State on May 1, 2020 and as attached
hereto as Exhibit A.

 

2.
The undersigned (a) has a preexisting personal or business relationship with the Corporation or one or more of its officers
or directors, or (b) by reason of the undersigned’s business or financial experience, or by reason of the business or
financial experience of the undersigned’s financial advisor who is not affiliated with, and who is not compensated
directly or indirectly by, the Corporation or any affiliate or selling agent of the Corporation, the undersigned is capable
of evaluating the risks and merits of an investment in the Preferred Stock and or protecting the undersigned’s own
interests in connection with the Preferred Stock;

 

3.
All of the Preferred Stock so received will be taken by the undersigned for its own account as an investment and not with a
view to the distribution thereof;

 

4.
It is understood that the Corporation will issue the Preferred Stock without their registration under the Securities Act of
1933, as amended (the “Act”); therefore, the Preferred Stock may not be resold or transferred unless they
are registered under the Act or unless an exemption from registration is available. The undersigned acknowledges that there
are substantial restrictions on the transferability of the shares of Preferred Stock and accordingly, it may not be possible
for the undersigned to liquidate an investment in the Corporation;

 

5.
The undersigned hereby covenants and agrees that the undersigned will, from time to time if requested by the Corporation or
its successors or assigns, do, execute, acknowledge and deliver, or will cause to be done, executed, acknowledged and
delivered, to the Corporation or its successors or assigns, such and all further acts, transfers, assignments, deeds, powers
and assurances of title, and additional papers and instruments, and cause to be done all acts or things as often as may be
proper or necessary for better conveying, transferring and assigning of all of the property hereby conveyed, transferred or
assigned, and effectively to carry out the intent hereof, and to vest in the entire right, title and interest of the
undersigned in and to all of the said property, and the undersigned will warrant and defend the same to the Corporation or
its successors or assigns, forever against all claims or demands whatsoever.

 

     

     

    

 

IN
WITNESS WHEREOF, the undersigned has caused this instrument to be duly executed and delivered as of the date first above written.

 

Very
truly yours,

 

	By:	 	 
	 	James Dabbs	 

 

Acknowledged
and Approved by

 

	INSPYR THERAPEUTICS, INC.	 
	 	 
	By:	Michael Cain	 
	Its:	Chief Executive Officer	 

 

     

     

    

 

EXHIBIT
A

 

CERTIFICATE
OF DESIGNATION OF SERIES E CONVERTIBLE PREFERRED STOCKExhibit 10.2

 

PROMISSORY NOTE

PAYCHECK PROTECTION PROGRAM

U.S. SMALL BUSINESS ADMINISTRATION

 

SBA Loan # 94252172-01

Date 4/29/2020

Loan Amount $3,477,412

Interest Rate 1.00%

Operating Company

SBA Loan Name Dynatronics
Corporation

Borrower Dynatronics
Corporation

Lender Bank of the
West

 

1. PROMISE TO PAY:

 

In return for the Loan, Borrower promises to pay to the order of
Lender the amount of

$3,477,412 _ _ and
no/100Dollars, interest on the

unpaid principal balance, and all other amounts required by this
Note.

 

2. DEFINITIONS:

 

“Amortization Commencement Date”
means the date that is the six (6)
month anniversary of the date

of initial disbursement on this Note.

 

“Deferral Period” means a period of six (6) months commencing with
the date of initial disbursement

on this Note and ending on the day immediately preceding the six
(6) month anniversary of such date.

 

“Loan” means the
loan evidenced by this Note.

 

“Loan Documents” means the documents related to this loan signed by
Borrower.

 

“Maturity Date” shall mean the date that is the two year
anniversary of the date of initial disbursement

on this Note.

 

“SBA” means the
Small Business Administration, an Agency of the United States of
America.

 

 

 

 

3. PAYMENT TERMS:

 

Borrower must make all payments at the place Lender designates. The
payment terms for this Note

are:

 

The interest rate is 1.00% per annum, fixed for the term of the
Note.

 

Principal and interest payments are deferred during the first six
(6) months of the term of this Note

(the “Deferral
Period”). Interest will
continue to accrue on the outstanding principal balance
during

the Deferral Period.

 

After proceeds of this Note have been expended by Borrower, but not
sooner than eight weeks

after the date of initial disbursement on this Note, Borrower may
submit to Lender a request for

forgiveness of the Loan. Borrower must submit all documentation
required by Lender to verify

number of full-time equivalent employees and pay rates, as well as
the payments on eligible

mortgage, lease, and utility obligations, certifying that the
documents are true and that Borrower

used the forgiveness amount to keep employees and make eligible
mortgage interest, rent, and

utility payments. Lender will notify Borrower within 60 days
whether all or part of the requested

forgiveness of the Loan has been approved.

 

If the entire principal balance of this Note and accrued interest
is not forgiven before the end of the

Deferral Period, then the principal balance together with and all
accrued and unpaid interest

outstanding on the Amortization Commencement Date shall be paid in
eighteen (18) monthly

payments, commencing in the month immediately following the
Amortization Commencement Date

and continuing each month thereafter until the Maturity Date;
provided, however, that the last

monthly installment shall be on the Maturity Date and shall be in
an amount equal to all principal

and accrued interest outstanding on the Maturity Date. Monthly
payments will be in an amount

determined by the Lender to be the amount necessary to fully
amortize the principal and interest

outstanding on the Amortization Commencement Date over the
remaining term of this Note.

 

Payment must be made on the fifth calendar day in the month it is
due.

 

Lender will apply each installment payment first to pay interest
accrued to the day Lender receives

payment, then bring principal current, then to pay any late fees,
and will apply any remaining

balance to reduce principal.

 

Borrower may prepay this Note at any time without penalty. Borrower
must:

 

a. Give Lender written notice; and

 

b. Pay all accrued interest.

 

All remaining principal and accrued interest is due and payable two
(2) years from the date of initial

disbursement.

 

Late Charge: If a payment on this Note is more than 10 days late,
Lender may charge Borrower a

late fee of up to 5.00% of the unpaid portion of the regularly
scheduled payment.

 

4. DEFAULT:

 

Borrower is in default under this Note if Borrower does not make a
payment when due under this

Note, or if Borrower or Operating Company:

 

A. Fails to do anything required by this Note and other Loan
Documents;

B. Defaults on any other loan with Lender;

 

 

 

 

C. Does not disclose, or anyone acting on their behalf does not
disclose, any material fact to

Lender or SBA;

D. Makes, or anyone acting on their behalf makes, a materially
false or misleading representation

to Lender or SBA;

E. Defaults on any loan or agreement with another creditor, if
Lender believes the default may

materially affect Borrower’s
ability to pay this
Note;

H. Becomes the subject of a proceeding under any bankruptcy or
insolvency law;

I. Has a receiver or liquidator appointed for any part of their
business or property;

J. Makes an assignment for the benefit of creditors;

K. Has any adverse change in financial condition or business
operation that Lender believes may

materially affect Borrower’s
ability to pay this
Note;

L. Reorganizes, merges, consolidates, or otherwise changes
ownership or business structure

without Lender’s
prior written consent;
or

M. Becomes the subject of a civil or criminal action that Lender
believes may materially affect

Borrower’s ability to pay
this Note.

 

5. LENDER’S
RIGHTS IF THERE IS A
DEFAULT:

 

Without notice or demand and without giving up any of its rights,
Lender may:

 

A. Require immediate payment of all amounts owing under this
Note;

B. Collect all amounts owing from Borrower; and

C. File suit and obtain judgment.

 

6. LENDER’S
GENERAL POWERS:

 

Without notice and without Borrower’s
consent, Lender
may:

 

A. Incur expenses to collect amounts due under this Note, enforce
the terms of this Note or any

other Loan Document. Among other things, the expenses may include
payments for reasonable

attorney’s fees and
costs. If Lender incurs such expenses, it may demand immediate
repayment

from Borrower or add the expenses to the principal
balance;

B. Release anyone obligated to pay this Note;

C. Take any action necessary to collect amounts owing on this
Note.

 

7. WHEN FEDERAL LAW APPLIES:

 

When SBA is the holder, this Note will be interpreted and enforced
under federal law, including SBA

regulations. Lender or SBA may use state or local procedures for
filing papers, recording documents,

giving notice, foreclosing liens, and other purposes. By using such
procedures, SBA does not waive

any federal immunity from state or local control, penalty, tax, or
liability. As to this Note, Borrower may

not claim or assert against SBA any local or state law to deny any
obligation, defeat any claim of

SBA, or preempt federal law.

 

8. SUCCESSORS AND ASSIGNS

 

Under this Note, Borrower and Operating Company include the
successors of each, and Lender

includes its successors and assigns.

 

9. GENERAL PROVISIONS:

 

A. All individuals and entities signing this Note are jointly and
severally liable.

B. Borrower waives all suretyship defenses.

C. Borrower must sign all documents necessary at any time to comply
with the Loan Documents

and to enable Lender to acquire, perfect, or maintain
Lender’s
liens on
Collateral.

 

 

 

 

D. Lender may exercise any of its rights separately or together, as
many times and in any order it

chooses. Lender may delay or forgo enforcing any of its rights
without giving up any of them.

E. Borrower may not use an oral statement of Lender or SBA to
contradict or alter the written terms

of this Note.

F. If any part of this Note is unenforceable, all other parts
remain in effect.

G. To the extent allowed by law, Borrower waives all demands and
notices in connection with this

Note, including presentment, demand, protest, and notice of
dishonor. Borrower also waives any

defenses based upon any claim that Lender did not obtain any
guarantee; did not obtain, perfect,

or maintain a lien upon Collateral; impaired Collateral; or did not
obtain the fair market

value of Collateral at a sale.

 

10. STATE-SPECIFIC PROVISIONS: If Borrower is located in any of the
following states, the clause

indicated for such state is incorporated herein:

 

MISSOURI.

 

Oral or unexecuted agreements or commitments to loan money, extend
credit or to forbear from

enforcing repayment of a debt including promises to extend or renew
such debt are not enforceable,

regardless of the legal theory upon which it is based that is in
any way related to the credit

agreement. To protect you (Borrowers(s)) and us (Creditor) from
misunderstanding or

disappointment, any agreements we reach covering such matters are
contained in this writing, which

is the complete and exclusive statement of the agreement between
us, except as we may later agree

in writing to modify it.

 

OREGON.

 

UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE
BY

LENDER CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT
FOR

PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY
BORROWER'S

RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED
BY AN

AUTHORIZED REPRESENTATIVE OF LENDER TO BE
ENFORCEABLE.

 

WASHINGTON.

 

Oral agreements or oral commitments to loan money, extend credit,
or to forbear from enforcing

repayment of a debt are not enforceable under Washington
law

 

WISCONSIN.

 

Each Borrower who is married represents that this obligation is
incurred in the interest of his or her

marriage or family.

 

11. BORROWER’S
NAME(S) AND
SIGNATURE(S):

 

By signing below, each individual or entity becomes obligated under
this Note as Borrower.

 

 

/s/ John
Krier                                   
            
           
           
           
       4/28/2020

Signature of Authorized Representative of Applicant
           
           
    Date

 

John Krier
           
           
           
           
           
           
           
           
Chief Financial
Officer

Print Name            
           
           
           
           
           
           
          Title

 

 

 

 

DISBURSEMENT AUTHORIZATION

PAYCHECK PROTECTION PROGRAM

U.S. SMALL BUSINESS ADMINISTRATION

 

SBA Loan # 94252172-01

Date 4/29/2020

Loan Amount $3,477,412

Interest Rate 1.00%

Operating Company

SBA Loan Name Dynatronics
Corporation

Borrower Dynatronics
Corporation

Lender Bank of the
West

 

Disbursement Instruction. Borrower understands that no loan
proceeds will be disbursed until all of

Lender’s conditions for making the Loan have been satisfied.
Please disburse the loan proceeds in equal

amount to the Loan Amount stated in the Promissory Note to the
following Bank of the West deposit

account # .

 

 

/s/ John
Krier                                   
            
           
           
           
       4/28/2020

Signature of Authorized Representative of Applicant
           
           
    Date

 

John Krier
           
           
           
           
           
           
           
           
Chief Financial
Officer

Print Name            
           
           
           
           
           
           
          Title

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