Document:

Exhibit 10.3

 

I-Bankers Securities, Inc.

 

October 12, 2022

 

Good Works II Acquisition Corp.

4265 San Felipe, Suite 603

Houston, TX 77027

Attn: Cary Grossman, President

 

Ladies and Gentlemen:

 

This is to confirm our agreement
whereby Good Works II Acquisition Corp., a Delaware corporation (“Company”), has requested I-Bankers Securities, Inc.
(the “Advisor”) to serve as the Company’s advisor in connection with the Company acquiring, engaging in a share
exchange, share reconstruction and amalgamation with, purchasing all or substantially all of the assets of, entering into contractual
arrangements with, or engaging in any other similar business combination with one or more businesses or entities (each a “Target”)
(in each case, a “Business Combination”) as described in the Company’s Registration Statement on Form S-1 (File
No. 333-254462 filed with the U.S. Securities and Exchange Commission (“Registration Statement”) in connection with
its initial public offering (“IPO”). This agreement amends and restates that certain letter agreement, dated as of
July 9, 2021, between the Company and the Advisor.

 

	 	1.	Services and Fees.

 

(a) The Advisor will, from
time to time, upon the Company’s request and in consultation with the Company:

 

	 	(i)	Assist the Company in preparing presentations for each potential Business Combination;

 

	 	(ii)	
    Assist the Company in arranging meetings
    with Company shareholders, including making calls directly to shareholders, to discuss each potential Business Combination and each
    potential Target’s attributes and providing regular market feedback, including written status reports, from these meetings and
    participate in direct interaction with shareholders, in all cases to the extent legally permissible;

 

	 	(iii)	
    Introduce the Company to potential investors
to purchase the Company’s securities in connection with each potential Business Combination; and

 

	 	(iv)	
    Assist the Company with the preparation of
    any press releases and filings related to each potential Business Combination or Target (the activities described in the foregoing
    clauses (i)-(iv), the “Services”).

 

(b) As compensation for
the Services, the Company will pay the Advisor a fee (the “Fee”) an amount up to 3.5% of the gross proceeds of the
IPO, subject to the provisions of Section 1(c) hereof. The Fee shall be due and payable at the closing of the Business Combination (“Closing”).
If a proposed Business Combination is not consummated for any reason, no Fee shall be due or payable.

 

(c) If the Fee becomes
due and payable in conjunction with the Closing of a Business Combination with Direct Biologics, LLC, the Fee be shall be subject to pro-rata
reduction based on the amount of available cash proceeds (between the amounts of $75 million and $230 million) delivered at such Closing,
as illustrated on Annex II hereto.

 

    	 	 	 

     

    

 

(d) The Fee shall be exclusive
of any finder’s fees which may become payable to the Advisor pursuant to any other agreement between the Advisor and the Company
or the Target.

 

	 	2.	Expenses.

 

At the Closing, the Company
shall reimburse the Advisor for all reasonable and documented costs and expenses incurred by the Advisor (including reasonable fees and
disbursements of counsel) in connection with the performance of the Services; provided, however, any costs and/or expenses in excess of
$5,000 in the aggregate shall be subject to the Company’s prior written approval, which approval will not be unreasonably withheld.
The expenses and costs will be charged at cost without markup.

 

	 	3.	Company Cooperation; Information.

 

(a) The Company will provide
full cooperation to the Advisor as may be necessary for the efficient performance by the Advisor of its obligations hereunder, including,
but not limited to, providing to the Advisor and its counsel, on a timely basis, all documents and information regarding the Company and
Target that the Advisor may reasonably request or that are otherwise relevant to the Advisor’s performance of its obligations hereunder
(collectively, the “Information”); making the Company’s management, auditors, consultants, and advisors available
to the Advisor; and, using commercially reasonable efforts to provide the Advisor with reasonable access to the management, auditors,
suppliers, customers, consultants and advisors of Target. The Company will promptly notify the Advisor of any change in facts or circumstances
or new developments affecting the Company or Target or that might reasonably be considered material to the Advisor’s engagement
hereunder.

 

(b) The Advisor agrees
to keep strictly confidential all information conveyed by the Company or the Company’s Representatives (as defined below) to the
Advisor in connection with this Agreement including, for the avoidance of doubt, the identities of any Targets and any Business Combination,
in whatever form, whether written, electronic or oral, and to execute a non-disclosure agreement in customary form reasonably acceptable
to the Advisor if requested to do so by the Company.

 

	 	4.	Representations, Warranties, and Covenants.

 

(a) The Company represents,
warrants, and covenants to the Advisor that all Information it makes available to the Advisor by or on behalf of the Company in connection
with the performance of its obligations hereunder will not, to the Company’s knowledge, contain any untrue statement of a material
fact or omit to state a material fact necessary in order to make statements made, in light of the circumstances under which they were
made, not misleading as of the date thereof and as of the consummation of the Business Combination. The Company acknowledges and agrees
that the Advisor will use and rely on the accuracy and completeness of the Information supplied to the Advisor without having the obligation
to independently verify the same.

 

(b) The Advisor represents,
warrants and covenants to the Company that it is not prohibited from entering into this Agreement by any other contract, agreement, law
or order.

 

	 	5.	Indemnity.

 

The Company shall indemnify
the Advisor and its affiliates and directors, officers, employees, shareholders, representatives, and agents in accordance with the indemnification
provisions set forth in Annex II hereto, all of which are incorporated herein by reference. Notwithstanding the foregoing
and Annex II, the Advisor hereby acknowledges that the Company has established a trust account (the “Trust Account”)
containing the proceeds of the IPO and from certain private placements occurring simultaneously with the IPO (including interest accrued
from time to time thereon) for the benefit of the Company’s public shareholders and certain other parties. For and in consideration
of the Company entering into this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Advisor hereby agrees that it does not now and shall not at any time hereafter have any right, title, interest or claim
of any kind in or to any assets held in the Trust Account as a result of entering into this Agreement, and shall not make any claim against
the Trust Account as a result of entering into this Agreement, regardless of whether such claim arises based on contract, tort, equity
or any other theory of legal liability (any and all such claims are collectively referred to hereafter as the “Released Claims”).
The Advisor hereby irrevocably waives any Released Claims that it may have against the Trust Account now or in the future as a result
of, or arising out of, any of the Services provided to the Company hereunder and will not seek recourse against the Trust Account with
respect thereto.

 

    	 	2	 

     

    

 

	 	6.	Use of Name and Reports.

 

Without the Advisor’s
prior written consent, neither the Company nor any of its affiliates (nor any director, officer, manager, partner, member, employee, or
agent thereof) shall quote or refer to (i) the Advisor’s name or (ii) any advice rendered by the Advisor to the Company or any communication
from the Advisor in connection with performance of the Services, except as required by applicable federal or state law, regulation, or
securities exchange rule.

 

	 	7.	Status as Independent Contractor.

 

The Advisor shall perform
the Services as an independent contractor and not as an employee of the Company or affiliate thereof. It is expressly understood and agreed
to by the parties that the Advisor shall have no authority to act for, represent, or bind the Company or any affiliate thereof in any
manner, except as may be expressly agreed to by the Company in writing. In rendering the Services, the Advisor will be acting solely pursuant
to a contractual relationship on an arm’s-length basis. This Agreement is not intended to create a fiduciary relationship between
the parties and neither the Advisor nor any of the Advisor’s officers, directors or personnel will owe any fiduciary duty to the
Company or any other person in connection with any of the matters contemplated by this Agreement.

 

	 	8.	Potential Conflicts.

 

The Company acknowledges that
the Advisor is a full-service securities firms engaged in securities trading and brokerage activities and providing investment banking
and advisory services from which conflicting interests may arise. In the ordinary course of business, the Advisor and its affiliates may
at any time hold long or short positions, and may trade or otherwise effect transactions, for their own account or the accounts of customers,
in debt or equity securities of the Company, its affiliates, or other entities that may be involved in the transactions contemplated hereby.
Additionally, the Advisor regularly enters into agreements similar to this Agreement with other companies. Nothing in this Agreement shall
be construed to limit or restrict the Advisor or any of its affiliates in conducting such business.

 

	 	9.	Entire Agreement.

 

This Agreement constitutes
the entire understanding between the Company and Advisor with respect to the subject matter hereof and supersedes all prior agreements
and understandings, oral or written, with respect thereto. This Agreement may not be modified or terminated orally or in any manner other
than by an agreement in writing signed by the Company and the Advisor.

 

	 	10.	Notices.

 

Any notices required or permitted
to be given hereunder shall be in writing and shall be deemed given when mailed by certified mail or private courier service, return receipt
requested, addressed to each party at its respective addresses set forth above, or such other address as may be given by a party in a
notice given pursuant to this Section.

 

	 	11.	Successors and Assigns.

 

This Agreement may not be
assigned by any party without the written consent of the other parties. This Agreement shall be binding upon and shall inure to the benefit
of the parties hereto and, except where prohibited, to their successors and assigns.

 

    	 	3	 

     

    

 

	 	12.	Non-Exclusivity.

 

Nothing herein shall be deemed
to restrict or prohibit the engagement by the Company of other consultants providing the same or similar services or the payment by the
Company of fees to such other consultants. The Company’s engagement of any other consultant(s) shall not affect the Advisor’s
right to receive the Fee and reimbursement of expenses pursuant to this Agreement. 

 

	 	13.	Applicable Law; Venue.

 

This Agreement
shall be construed and enforced in accordance with the laws of the State of New York without giving effect to conflict of laws. In the
event of any dispute under this Agreement, then and in such event, each party hereto agrees that the dispute shall be brought and enforced
in the courts of the State of New York, County of New York, or the United States District Court for the Southern District of New York,
in each event at the discretion of the party initiating the dispute. Each party irrevocably submits to such jurisdiction, which jurisdiction
shall be exclusive. Each party hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient
forum. Any such process or summons to be served upon a party may be served by transmitting a copy thereof by registered or certified mail,
postage prepaid, addressed to such party at the address set forth at the beginning of this Agreement. Such mailing shall be deemed personal
service and shall be legal and binding upon the party being served in any action, proceeding or claim. The parties agree that the prevailing
party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys’ fees and expenses
relating to such action or proceeding and/or incurred in connection with the preparation therefor.

 

	 	14.	Counterparts.

 

This Agreement may be executed
in several original or facsimile counterparts, each one of which shall constitute an original, and together shall constitute but one instrument.

 

[Signature Page Follows]

 

    	 	4	 

     

    

 

If the foregoing correctly
sets forth the understanding between the Advisor and the Company with respect to the foregoing, please so indicate your agreement by signing
in the place provided below, at which time this letter shall become a binding contract.

 

	 	I-Bankers Securities, Inc.
	 	 	 
	 	By:	/s/ Shelley Leonard 
	 	Name: 	 Shelley Leonard
	 	Title:	 President

 

	AGREED AND ACCEPTED BY:	 
	 	 
	Good Works II Acquisition Corp.	 
	 	 	 
	By:	/s/ Cary Grossman                	 
	Name: 	Cary Grossman	 
	Title:	President	 

 

[Signature Page
to Business Combination Marketing Agreement]

 

    	 	5	 

     

    

 

ANNEX I

 

Indemnification

 

In connection with Good Works
II Acquisition Corp.’s (the “Company”) engagement of I-Bankers Securities, Inc. (the “Advisor”)
pursuant to that certain letter agreement (“Agreement”) of which this Annex forms a part, the Company hereby agrees,
subject to Section 5 of the Agreement, to indemnify and hold harmless the Advisor and its affiliates and their respective directors, officers,
shareholders, agents and employees of any of the foregoing (collectively the “Indemnified Persons”), from and against
any and all claims, actions, suits, proceedings (including those of shareholders), damages, liabilities and expenses incurred by any of
them (including the reasonable fees and expenses of counsel), as incurred, (collectively a “Claim”), that are related
to or arise out of the Agreement and any actions taken or omitted to be taken by any Indemnified Person as contemplated by the Agreement
or in accordance with and at the Company’s request or with the Company’s consent in connection with the Agreement, and the
Company shall advance or reimburse, at the Indemnified Person’s option, any Indemnified Person for all expenses (including the reasonable
fees and expenses of counsel) as incurred by such Indemnified Person in connection with investigating, preparing or defending any such
claim, action, suit or proceeding, in connection with pending or threatened litigation in which any Indemnified Person is a party. The
Company will not, however, be responsible for any Claim that is finally judicially determined to have resulted from the gross negligence
or willful misconduct of any person seeking indemnification for such Claim. The Company further agrees that no Indemnified Person shall
have any liability to the Company for or in connection with the Company’s engagement of the Advisor except for any Claim incurred
by the Company as a result of such Indemnified Person’s gross negligence or willful misconduct.

 

The Company further agrees
that it will not, without the prior written consent of the Advisor, settle, compromise or consent to the entry of any judgment in any
pending or threatened Claim in respect of which indemnification may be sought hereunder (whether or not any Indemnified Person is an actual
or potential party to such Claim), unless such settlement, compromise or consent (i) includes an unconditional, irrevocable release of
each Indemnified Person from any and all liability arising out of such Claim, and (ii) does not include a statement as to or an admission
of fault, culpability or a failure to act, by or on behalf of any Indemnified Person.

 

Promptly upon receipt by
an Indemnified Person of notice of any complaint or the assertion or institution of any Claim with respect to which indemnification is
being sought hereunder, such Indemnified Person shall notify the Company in writing of such complaint or of such assertion or institution
but failure to so notify the Company shall not relieve the Company from any obligation it may have hereunder, except and only to the
extent such failure results in the forfeiture by the Company of substantial rights and defenses. If the Company so elects or is requested
by such Indemnified Person, the Company will assume the defense of such Claim, including the employment of counsel reasonably satisfactory
to such Indemnified Person and the payment of the fees and expenses of such counsel. In the event, however, that legal counsel to such
Indemnified Person reasonably determines that having common counsel would present such counsel with a conflict of interest or if the
defendant in, or target of, any such Claim, includes an Indemnified Person and the Company, and legal counsel to such Indemnified Person
reasonably concludes that there may be legal defenses available to it or other Indemnified Persons different from or in addition to those
available to the Company, then such Indemnified Person may employ its own separate counsel to represent or defend him, her or it in any
such Claim and the Company shall pay the reasonable fees and expenses of such counsel. Notwithstanding anything herein to the contrary,
if the Company fails timely or diligently to defend, contest, or otherwise protect against any Claim, the relevant Indemnified Party
shall have the right, but not the obligation, to defend, contest, compromise, settle, assert crossclaims, or counterclaims or otherwise
protect against the same, and shall be fully indemnified by the Company therefor, including without limitation, for the reasonable fees
and expenses of its counsel and all amounts paid as a result of such Claim or the compromise or settlement thereof.

 

    	 	6	 

     

    

 

In addition, with respect
to any Claim in which the Company assumes the defense, the Indemnified Person shall have the right to participate in such Claim and to
retain his, her or its own counsel therefor at his, her or its own expense.

 

The Company agrees that if
any indemnity sought by an Indemnified Person hereunder is held by a court to be unavailable for any reason then (whether or not the Advisor
is an Indemnified Person), the Company and the Advisor shall contribute to the Claim for which such indemnity is held unavailable in such
proportion as is appropriate to reflect the relative benefits to the Company, on the one hand, and the Advisor on the other, in connection
with the Advisor’s engagement referred to above, subject to the limitation that in no event shall the amount of Advisor’s
contribution to such Claim exceed the amount of fees actually received by Advisor from the Company pursuant to the Advisor’s engagement
hereunder. The Company hereby agrees that the relative benefits to the Company, on the one hand, and the Advisor on the other, with respect
to the Advisor’s engagement shall be deemed to be in the same proportion as (a) the total value paid or proposed to be paid or received
by the Company or its shareholders as the case may be, pursuant to the transaction (whether or not consummated) for which the Advisor
is engaged to render services bears to (b) the fee paid or proposed to be paid to the Advisor in connection with such engagement.

 

The Company’s indemnity,
reimbursement and contribution obligations under this Agreement (a) shall be in addition to, and shall in no way limit or otherwise adversely
affect any rights that any Indemnified Party may have at law or at equity and (b) shall be effective whether or not the Company is at
fault in any way.

 

    	 	7	 

     

    

 

ANNEX II

 

	Fee Schedule
	($ Amounts in 000’s)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net cash retained, including private placement	 	$	230,000	 	 	$	200,000	 	 	$	170,000	 	 	$	140,000	 	 	$	110,000	 	 	$	75,000	 
	Advisor Deferred Fee	 	$	8,050	 	 	$	6,492	 	 	$	5,000	 	 	$	5,000	 	 	$	5,000	 	 	$	5,000	 
	Fee as % of IPO gross proceeds	 	 	3.50	%	 	 	2.82	%	 	 	2.17	%	 	 	2.17	%	 	 	2.17	%	 	 	2.17	%

 

 

 

8EX-10.1

  FOURTH AMENDMENT TO

  AMENDED AND RESTATED LEASE AGREEMENT

   

  THIS FOURTH AMENDMENT TO AMENDED AND RESTATED LEASE

  AGREEMENT (this “Amendment”) is made as of October 11, 2022, by and between Sanford Health, a South Dakota non-profit corporation (“Landlord”), and SAB Biotherapeutics, Inc., a Delaware corporation (“Tenant”).

   

  RECITALS

   

  A.Landlord and Tenant are parties to that certain Amended and Restated Lease Agreement dated as of September 1, 2019 (as the same may have been amended, the “Lease”).

   

  B.Landlord and Tenant have agreed to enter into this Amendment for the purpose of reducing the amount of space Tennant is renting from Landlord and providing a rent abatement in exchange for a promissory note and other considerations.

   

  C.Capitalized terms used herein but not otherwise defined herein shall have the meanings ascribed to such terms in the Lease.

   

  AGREEMENTS

   

  NOW, THEREFORE, in consideration of the mutual covenants set forth in this Amendment and other good and valuable consideration, the sufficiency and receipt of which is hereby acknowledged, Landlord and Tenant hereby agree as follows:

   

  1.Reduced Square Footage. The parties hereby agree that as of October 1, 2022 the space rented under the Lease is hereby reduced, and the total amount of space rented by Tennant shall be twenty-one thousand fourteen square feet (21,014 sq ft) of shared and dedicated space, as depicted on Exhibit A attached here to, together with the continued non-exclusive right to use the Common Area described in Article 4 of the Lease. Article 1, Section 1 of the Lease is hereby revised in accordance with this paragraph, and Exhibit A of the Lease is hereby replaced with Exhibit A of this Amendment.

   

  2.Rent. Article 3, Section 1 of the Lease is deleted in its entirety and replaced with the following:

   

  Commencing as of October 1, 2022 and continuing through the effective period of the Lease, the annual rent amount for the Leased Premises shall be five hundred thirty-one thousand twenty-three dollars and seventy-eight cents ($531,023.78) payable in equal monthly installments of forty-four thousand two hundred fifty-one dollars and ninety-eight cents ($44,251.98). Thereafter, commencing January 1, 2023 and annually thereafter during the Term, the Annual Rent shall increase by the greater of two percent (2%) per annum or the increase in the Consumer Price Index – All Urban Consumers for the 12-month period, and shall be cumulative of the prior year’s Annual Rent. All sums payable hereunder by Tennant which are not paid when due shall bear

   

  

   

  interest from the due date thereof to the date of payment at the rate of twelve percent (12%) per annum.

   

  3.Rent Abatement. The parties hereby agree that for the period of October 1, 2022 to September 30, 2023 Tenant’s obligation to pay Annual Rent shall be abated and not required to be paid when normally due. The total amount so deferred is referred to herein as the “Abated Rent”. Regular monthly required rental payments of Annual Rent shall again be due and payable as and when required under the Lease commencing on October 1, 2023. In exchange for the Abated Rent, Tenant is hereby issuing the Unsecured Convertible Promissory Note to the Landlord attached hereto as Attachment 1.

   

  4.Entire Agreement. This Amendment constitutes all of the agreements among the parties relating to the matters set forth herein and supersedes all other prior or concurrent oral or written letters, agreements or understandings with respect to the matters set forth herein.

   

  5.Counterparts. This Amendment may be signed in any number of counterparts by the parties hereto, all of which taken together shall constitute one and the same instrument.

   

  6.Scope of Amendment. Except as otherwise expressly provided in this Amendment, the terms and provisions of the Lease are unmodified and in full force and effect and the same are ratified and confirmed hereby.

   

   

   

  

  IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the day and year first above written.

   

  LESSOR:

   

  SANFORD HEALTH

   

  By: /s/ David A. Pearce	 

  Name: David A. Pearce

  Title: President, Innovation, Research, and World Clinic

   

  LESSEE:

   

  SAB BIOTHERAPEUTICS, INC.

   

  By: /s/ Eddie J. Sullivan	 

  Name: Eddie Sullivan

  Title: Chief Executive Officer

   

   

   

  

  EXHIBIT A

   

  The drawing above and table below summarises the Ft2 on the first floor at the Sanford Center.

   

  			
	Area
	Description
	Ft2

	A
	Air Handler Room
	669

	B
	Clean Room Area
	12,593

	C
	Warehouse B
	741

	D
	Lab benches
	3,579

	E
	Centrifuges
	44

	F
	QC
	917

	G
	Refrigerator area
	150

	H
	FAC
	10

	Sum  
	18703

   

  
 

   

   

  

   

  The drawing above and table below summarizes the Ft2 on the second floor.

   

  			
	Area
	Description
	Ft2

	A
	Cubicle Area
	832

	B
	Offices +
fireproof
	591

	C
	Offices
	400

	D
	Offices
	388

	E
	File cabinets
	100

	Sum
	2,311

   

  The total ft2 in the building is 21,014.

   

   

   

  

  ATTACHMENT 1

   

  THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (AS AMENDED, THE “ACT”) OR UNDER THE SECURITIES LAWS OF ANY STATE. THIS SECURITY MAY NOT BE TRANSFERRED, SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, (B) AN EXEMPTION OR QUALIFICATION UNDER APPLICABLE SECURITIES LAWS OR (C) AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED. ANY ATTEMPT TO TRANSFER, SELL, PLEDGE OR HYPOTHECATE THIS SECURITY IN VIOLATION OF THESE RESTRICTIONS SHALL BE VOID.

   

  8% UNSECURED CONVERTIBLE NOTE

   

  		
	$541,644.26
	October 1, 2022

   

  FOR VALUE RECEIVED, SAB Biotherapeutics, Inc., a Delaware corporation (the “Company”), hereby promises to pay to the order of Sanford Health, a South Dakota non-profit corporation (the “Holder”), the sum of five hundred forty-one thousand six hundred forty-four dollars and twenty- six cents ($541,644.26 ) (the “Principal”), plus accrued and unpaid interest thereon on September 31, 2024 (the “Maturity Date”). The following terms shall apply to this Note:

   

  1.Interest. The Company hereby agrees to pay interest to the Holder in respect of the outstanding Principal, at a per annum rate equal to eight percent (8%) in cash. Simple interest shall accrue on the outstanding Principal from and after the date hereof, and shall be payable on the Maturity Date.

   

  2.No Prepayment. The Company may not prepay all or any part of the amounts outstanding under this Note at any time without the express written consent of the Holder.

   

  3.Conversion.

   

  3.1.Note Conversion. The Holder shall have the right, but not the obligation, to convert all or any part of the outstanding Principal of this Note, together with any accrued and unpaid interest thereon to the date of such conversion, into such number of fully paid and non- assessable shares of the Company’s common stock, par value $0.0001 per share (the “Common Stock”) at any time and from time to time prior to the later of the Maturity Date or the date on which this Note is paid in full, subject to the terms and conditions set forth in this Section 3, at a conversion price per share of Common Stock equal to greater of (x) $1.50 (as the same may be adjusted from time to time in accordance with Section 3.3) and (y) the price at which the Company sells shares of Common Stock in any bona fide private or public equity financing prior to the Maturity Date (the “Conversion Price”).

   

  3.2.Conversion Procedures.

   

  3.2.1.In the event that the Holder elects to convert this Note, the Holder shall give notice of such election by delivering an executed and completed notice of conversion (a

   

  

   

  “Notice of Conversion”) to the Company, which Notice of Conversion shall provide a breakdown in reasonable detail of the Principal, accrued and unpaid interest amounts being converted and the name of the entity to be issued the shares of Common Stock upon conversion. The date specified in the Notice of Conversion, or if no date is specified, then the date of the delivery of the Notice of Conversion, shall be referred to as the “Conversion Date.” A form of Notice of Conversion to be employed by the Holder is annexed hereto as Annex A.

   

  3.2.2.Pursuant to the terms of the Notice of Conversion, the Company shall deliver, or cause to be delivered, such number of shares of Common Stock (the “Conversion Shares”) via electronic stock transfer to the Holder. In the case of the exercise of the conversion rights set forth herein, the conversion privilege shall be deemed to have been exercised and the Conversion Shares issuable upon such conversion shall be deemed to have been issued upon the Conversion Date.

   

  3.2.3.The number of Conversion Shares to be issued upon each conversion of this Note pursuant to this Section 3 shall be the quotient obtained by dividing the Principal and accrued interest by the then applicable Conversion Price. No fractional shares of Common Stock shall be issued upon any conversion of this Note. In lieu of the Company issuing any fractional shares to the Holder upon any conversion of this Note, the Company shall make an adjustment and payment in cash to the Holder.

   

  3.3.Adjustment Events. The Conversion Price and number and kind of shares or other securities to be issued upon conversion shall be subject to adjustment from time to time upon the happening of certain events while this conversion right remains outstanding, as follows:

   

  3.3.1.Merger, Sale of Assets, etc. If (i) the Company effects any merger or consolidation of the Company with or into another entity, (ii) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another entity) is completed pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, (iv) the Company consummates a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with one or more persons or entities whereby such other persons or entities (such other persons or entities, the “Purchasers”) acquire more than 50% of the outstanding shares of Common Stock (not including any shares of Common Stock held by the Purchasers or such other persons or entities associated or affiliated with the Purchasers), or (v) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the 1934 Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly, of 50% of the aggregate Common Stock of the Company (in any such case, a “Fundamental Transaction”), this Note, as to the Principal and accrued and unpaid interest thereon, shall thereafter, at the Holder’s election, be deemed to evidence the right to convert into such number and kind of shares or other securities and property as would have been issuable or distributable on account of such Fundamental Transaction, upon or with respect to the

   

  

   

  securities subject to the conversion right immediately prior to such Fundamental Transaction. The foregoing provision shall similarly apply to successive Fundamental Transactions of a similar nature by any such successor or purchaser. Without limiting the generality of the foregoing, the provisions of this Section 3.3 shall apply to such securities of such successor or purchaser after any such Fundamental Transaction.

   

  3.3.2.Reclassification, etc. If the Company at any time shall, by reclassification or otherwise, change the Common Stock into the same or a different number of securities of any class or classes, this Note, as to the Principal hereof and accrued and unpaid interest hereon, shall thereafter be deemed to evidence the right to convert into an adjusted number of such securities and kind of securities as would have been issuable as the result of such change with respect to the Common Stock immediately prior to such reclassification or other change.

   

  3.3.3.Stock Splits, Combinations and Dividends. If the shares of Common Stock are subdivided or combined into a greater or smaller number of shares of Common Stock (whether by a stock split or otherwise), or if a dividend is paid on the Common Stock in shares of Common Stock, the Conversion Price shall be proportionately reduced in case of subdivision of shares or stock dividend or proportionately increased in the case of combination of shares, in each such case by the ratio which the total number of shares of Common Stock outstanding immediately after such event bears to the total number of shares of Common Stock outstanding immediately prior to such event.

   

  3.4.Replacement Note. In the event of any partial conversion of the outstanding Principal and any accrued and unpaid interest under this Note, the Holder agrees to surrender this Note to the Company and the Company shall issue to the Holder a replacement Note in the amount of the remaining Principal (and accrued and unpaid interest, if applicable) after giving effect to such partial conversion.

   

  3.5.Notice as to Adjustments. Whenever the Conversion Price is adjusted pursuant to this Section 3, the Company shall promptly mail to the Holder a notice setting forth the Conversion Price after such adjustment and setting forth a statement of the facts requiring such adjustment.

   

  3.6.Reservation. The Company covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock for the sole purpose of issuance upon conversion of this Note, free from all mortgages, charges, pledges, liens, hypothecations or other security interests (“Liens”), preemptive rights or any other actual contingent purchase rights of persons other than the Holder, not less than the aggregate number of shares of the Common Stock as shall be issuable (taking into account the adjustments and restrictions of Section 3) upon the conversion of this Note. The Company covenants that all shares of Common Stock that shall be so issuable shall, upon issue, be duly authorized, validly issued, fully paid and nonassessable.

   

  4.Covenants of the Company. The Company covenants and agrees that, so long as all or any of the Principal of this Note remains outstanding, it shall:

   

   

  

  4.1.pay and discharge all taxes, assessments and governmental charges or levies imposed upon it or upon its income and profits, or upon any properties belonging to it before the same shall be in default; provided, however, that the Company shall not be required to pay any such tax, assessment, charge or levy which is being contested in good faith by proper proceedings and adequate reserves for the accrual of same are maintained if required by generally accepted accounting principles; and

   

  4.2.preserve its corporate existence and continue to engage in business of the same general type as conducted as of the date hereof.

   

  5.Events of Default. The occurrence of any of the following events shall constitute an event of default (“Event of Default”):

   

  5.1.Failure to Pay Principal or Interest. The Company shall fail to pay the Principal, when due, or any interest or other sum when due under this Note.

   

  5.2.Breach of Covenants. The Company breaches any covenant or other term or condition of this Note in any material respect, which failure is not cured, if possible to cure, within thirty (30) days after the Company has become or should have become aware of such breach.

   

  5.3.General Assignment. The Company or any subsidiary of the Company makes an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for them or for a substantial part of their property or business; or such a receiver or trustee shall otherwise be appointed.

   

  5.4.Bankruptcy. Bankruptcy, insolvency, reorganization, or liquidation proceedings or other such proceedings or relief under any bankruptcy, insolvency or restructuring law or any law, or the issuance of any notice in relation to such event, shall be instituted by or against the Company or any subsidiary of the Company.

   

  6.Status of Note.

   

  6.1.Status of Note.

   

  6.1.1.Except for obligations arising from Permitted Liens, and subject to Section 6.2 below, the obligations of the Company under this Note shall rank senior to all indebtedness of the Company, whether now or hereinafter existing.

   

  6.1.2.“Permitted Liens” means the individual and collective reference to any: (a) Liens for taxes, assessments and other governmental charges or levies not yet due, or Liens for taxes, assessments and other governmental charges or levies being contested in good faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Company) have been established in accordance with U.S. generally accepted accounting principles, consistently applied,

   

  and duly reflected in the Company’s financial statements; (b) Liens imposed by law which were incurred in the ordinary course of the Company’s business, such as 

   

  

  carriers’, warehousemen’s and mechanics’ liens, statutory landlords’ liens, and other similar liens arising in the ordinary course of the Company’s business, and which (i) do not individually or in the aggregate materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business of the Company and its consolidated subsidiaries or (ii) are being contested in good faith by appropriate proceedings, which proceedings have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien; and (c) Liens incurred in connection with indebtedness of up to ten million dollars ($10,000,000) in the aggregate.

   

  6.2.Unsecured Debt and Bank Loan Facilities. Notwithstanding anything to the contrary in Section 6.1 above: (a) the Company may issue unsecured debt ranking pari passu with this Note so long as the maturity date (and any other repayment or prepayment date) for such new indebtedness or any other provision allowing for such indebtedness to be redeemed or put to the Company is later than the Maturity Date; and (b) the Company may enter into bank loan facilities that are senior to this Note.

   

  6.3.Liquidation. Upon any Liquidation Event, the Holder will be entitled to receive, before any distribution or payment is made upon, or set apart with respect to, any other indebtedness of the Company or any class of capital stock of the Company, an amount equal to the Principal plus all accrued and unpaid interest thereon. For purposes of this Note, “Liquidation Event” means a liquidation pursuant to a filing of a petition for bankruptcy under applicable law or any other insolvency or debtor’s relief, an assignment for the benefit of creditors, or a voluntary or involuntary liquidation, dissolution or winding up of the affairs of the Company.

   

  7.Miscellaneous.

   

  7.1.Non-Waiver and Other Remedies. No course of dealing, failure or delay on the part of the Holder of this Note in exercising any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.

   

  7.2.Notices. Any notice required or permitted pursuant to this Note shall be given in writing and shall be given either personally or by sending it by next-day or second-day courier service, electronic mail or similar means to the address as shown below (or at such other address as such party may designate by fifteen (15) days’ advance written notice to the other parties to this Note given in accordance with this section):

   

  7.2.1.If to the Holder

   

  Sanford Health [Address]

   

  Attention:

  Email:

   

  

   

  7.2.2.If to the Company:

   

  SAB Biotherapeutics, Inc. SAB Biotherapeutics Inc. 2100 East 54th Street North Sioux Falls, SD 57104 Attention: Russ Beyer Email: russ@sab.bio

   

  Where a notice is sent by next-day or second-day courier service, service of the notice shall be deemed to be effected by properly addressing, pre-paying and sending by next-day or second-day service through an internationally-recognized courier a letter containing the notice, with a confirmation of delivery, and to have been effected at the expiration of two (2) days after the letter containing the same is sent as aforesaid. Where a notice is sent by electronic mail, service of the notice shall be deemed to be effected by properly addressing, and sending such notice through a transmitting organization, with a written confirmation of delivery, and to have been effected on the day the same is sent as aforesaid.

   

  7.3.Assignability. This Note and all rights and obligations hereunder may not be transferred or assigned in whole or in part by the Holder or the Company. This Note shall be binding upon the Company and its successors and assigns, and shall inure to the benefit of the Holder and its successors and assigns.

   

  7.4.Collection Costs; Attorneys’ Fees. If default is made in the payment of this Note, the Company shall be obligated to pay the Holder hereof reasonable costs of collection, including attorneys’ fees and, in addition, the Company and of any amendment or modification of any of the foregoing requested by the Company or arising following an Event of Default.

   

  7.5.Governing Law. This note and the rights and obligations of the company hereunder shall be governed by, and shall be construed and enforced in accordance with, the laws of the State of Delaware.

   

  7.6.Consent to Jurisdiction and Service of Process. All judicial proceedings arising out of or relating to this note, or any obligations hereunder, may be brought in any court of competent jurisdiction in the State of South Dakota.

   

  7.7.Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS NOTE. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS.

   

   

   

  

  7.8.Section Headings. Section headings herein have been inserted for reference only and shall not be deemed to limit or otherwise affect, in any matter, or be deemed to interpret in whole or in part any of the terms or provisions of this Note.

   

  * * *

   

   

   

  

  IN WITNESS WHEREOF, this Note has been executed and delivered on the date specified above by the duly authorized representative of the Company.

   

  SAB BIOTHERAPEUTICS, INC.

   

   

  By: /s/ Eddie J. Sullivan	 

  Name: Eddie Sullivan

  Title: Chief Executive Officer

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