Document:

ex_436176.htm

Exhibit 10.1

 

EXCHANGE AGREEMENT

 

THIS EXCHANGE AGREEMENT, is dated as of October 18, 2022 (this “Agreement”), by and among Mitesco, Inc., a Delaware corporation (the “Company”), and Fund (the “Fund”).

 

WHEREAS, the Fund owns an aggregate of: (a) 187,500 shares of the Company’s Series D Convertible Preferred Stock (the “Series D Shares”) and a promissory note dated April 6, 2022 for the face amount of $187,500 (“Promissory Note”) which Promissory Note will be paid off at the uplist pursuant to the terms of the Promissory Note as amended;

 

WHEREAS, the Company expects to list the Common Stock on a national securities exchange (the “Uplisting”) shortly following the date hereof and in connection therewith to conduct an offering of Common Stock and/or units consisting of Common Stock and warrants to purchase Common Stock (the “Uplisting Offering”); and

 

WHEREAS, pursuant to the terms of a Securities Purchase Agreement, dated on or about the date of the Uplisting (the “Series E SPA”), the Company is conducting an offering of shares of its Series E Convertible Preferred Stock (the “Series E Shares”) having the terms and provisions set forth in the form of Certificate of Designations, Preferences and Rights of the Series E Convertible Perpetual Preferred Stock of the Company, attached hereto as Exhibit A;

 

WHEREAS ̧ the Fund has agreed to invest no less than $93,750 into the Uplisting Offering; and

 

WHEREAS, the exchange provided for hereby is being made in reliance upon the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”).

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.    Exchange. Effective as of the date of the Uplisting (but immediately prior to the Uplisting), the Fund shall exchange all its Series D Shares for a number of Series E Shares equal to the applicable Series E Exchange Value. The Fund shall exchange the Series D Shares owned by it by surrendering to the Company such Series D Shares (and the corresponding certificates, if any, evidencing the same) (the “Holder Deliveries”). Upon such surrender, the Company shall issue to the Fund a number of Series E Shares equal to the Series E Exchange Value. In connection with such exchange, the Company and the Fund agree that the Fund shall execute the Series E SPA, as a purchaser thereunder, and that the Fund’s surrender of the Fund Deliveries shall constitute the Fund’s payment of its Subscription Amount (as defined in the Series E SPA) under the Series E SPA. Upon the Uplisting and issuance of the Series E Shares to the Fund, the Series D Shares owned by the Fund shall be canceled on the books of the Company and all of the Fund’s rights with respect thereto shall automatically cease and terminate, and the Fund, by executing and becoming a party to this Agreement, shall be deemed to have consented to the cancellation of the Fund’s Series D Shares. For purposes of this Agreement, the “Series E Exchange Value” shall be an amount of Series E Shares equal to 150% of the Stated Value of the Series Series D Shares (including accrued dividends on the preferred). By way of example, if the Uplisting were to have

 

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occurred as of October 3, 2022, the Fund would have received $312,303 of Series E Shares (rounded up) as detailed on Schedule I. 

 

2.    Representations and Warranties of the Company. The Company hereby represents and warrants to the Fund that:

 

(a)    the Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware;

 

(b)    all corporate action on the part of the Company necessary for the authorization, execution and delivery of this Agreement, and the performance of all obligations hereunder, have been taken on or prior to the date hereof. This Agreement has been validly authorized, executed and delivered by the Company, and constitutes the legal, valid and binding obligations of the Company, enforceable against them in accordance with their terms, except as such enforceability may be limited by general principles of equity or by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies; and

 

(c)    the Series E Shares issued in accordance herewith and under the Series E SPA have been duly authorized and validly issued and are fully paid and non-assessable.

 

3.    Representations and Warranties of the Fund. The Fund hereby represents and warrants to the Company that:

 

(a)    the Fund is a limited liability partnership duly organized, validly existing and in good standing under the laws of its jurisdiction of Delaware;

 

(b)    all actions on the part of the Fund necessary for the authorization, execution and delivery of this Agreement, and the performance of all obligations hereunder, have been taken on or prior to the date hereof; this Agreement is validly authorized, executed and delivered by the Fund and constitutes the legal, valid and binding obligations of the Fund, enforceable against the Fund in accordance with its terms, except as such enforcement may be limited by general principles of equity or by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies;

 

(c)    the Fund is acquiring the Series E Shares for its own account only and not with view towards, or for sale in connection with, the public sale or distribution thereof;

 

(d)    the Fund is an “accredited investor” as that term is defined in Rule 501 of Regulation D, as promulgated under the Securities Act;

 

(e)    the Fund understands that the Series E Shares are being issued to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and the Fund’s compliance with, the representations, warranties, acknowledgements, and understandings of the Fund set forth herein in order to determine the availability of such exemptions and the eligibility of the Fund to acquire the Series E Shares;

 

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(f)    the Fund and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and issuance of the Series E Shares; the Fund has had the opportunity to review the Company’s filings with the Securities and Exchange Commission; the Fund and its advisors, if any, have been afforded the opportunity to ask questions of the Company; neither such inquiries nor any other due diligence investigations conducted by the Fund or its advisors, if any, or its representatives shall modify, amend or affect the Fund’s right to rely on the Company’s representations and warranties contained herein; the Fund has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Series E Shares; the Fund is relying solely on its own accounting, legal and tax advisors, and not on any statements of the Company or any of its agents or representatives, for such accounting, legal and tax advice with respect to its acquisition of the Series E Shares and the transactions contemplated by this Agreement;

 

(g)    the Fund understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Series E Shares or the fairness or suitability of the investment nor have such authorities passed upon or endorsed the merits of the offering of the Series E Shares; and

 

(h)    the Fund understands and acknowledges that, upon its execution of this Agreement, any and all Series D Shares owned by it will be automatically cancelled, in each instance without further action on the part of the Company or the Fund except as otherwise set forth herein, and the Fund releases the Company from any and all obligations of the Company to the Fund under the Series D Shares owned by it; without limiting the generality of the preceding sentence, the Fund hereby surrenders and waives all rights that it has in respect of all of its Series D Shares.

 

4.    Miscellaneous.

 

(a)    Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of Florida without giving effect to principles of conflicts of law.

 

(b)    Entire Agreement. This Agreement and the Series E SPA contain the entire agreement between the parties regarding the subject matter hereof and supersedes all prior agreements or understandings between the parties with respect thereto.

 

(c)    Successors. This Agreement will inure to the benefit of any successor in interest to a party or any person that after the date hereof may acquire any subsidiary or division of a party.

 

(d)    Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original, and all of which will constitute the same agreement.

 

 

[Signature Page(s) Follow this Page]

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date and year set forth above.

 

 

MITESCO, INC.

 

 

By:                                                                    

Name:                                                               

Title:                                                                 

 

4

 

 

 

Fund

 

By:                                                                   

Name:

Title:

 

 

 

 

 

 

 

 

5

 

 

EXHIBIT A

 

Form of Serie E Certificate of Designations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule I

 

 

	
			Series D

				 	 
	
			Shares

				
			187,500

				 
	 	
			1.05

				 
	
			Stated Value

				
			$196,875

				 
	
			Dividend

				
			$11,327

				
			Through 10/3/2022

			
	 	
			$208,202

				 
	
			50% Premium

				
			104,101

				 
	 	
			$312,303Document

Exhibit 10.1

THIRD AMENDMENT TO
EXECUTIVE EMPLOYMENT AGREEMENT

This Third Amendment to Executive Employment Agreement (this “Amendment”) is made effective as of November 1, 2022 (the “Effective Date”) by and between Arbutus Biopharma, Inc. (the “Company”), and Michael McElhaugh (the “Executive”) (together the “Parties”).

RECITALS
						
		
	A.	The Company and the Executive have entered into an Executive Employment Agreement effective as of July 10, 2015 (together, as amended, restated, supplemented, or otherwise modified prior to the date hereof, the “Employment Agreement”); and
		
	B.	The Parties have agreed to make certain amendments to the Employment Agreement as set forth herein. 

THEREFORE, in consideration of the mutual promises herein set forth and for other good and valuable consideration, the Parties agree as follows:

Section 1.     Capitalized Terms. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to them in the Employment Agreement, unless the context shall otherwise require.

Section 2.     Amendments.
						
		
	(a)	Section 1 of the Employment Agreement is hereby amended and restated in its entirety as set forth below:

Position and Duties. The Executive will serve as Chief Operating Officer of the Company, and will have powers and duties consistent with such position as may from time to time be prescribed by the Chief Executive Officer of the Company. As Chief Operating Officer of the Company, the Executive shall devote his full working time and efforts to the business and affairs of the Company. Notwithstanding the foregoing, the Executive may manage his personal investments or engage charitable or other community activities.
						
		
	(b)	Section 2(a) of the Employment Agreement is hereby amended and restated in its entirety as set forth below:

(a) Base Salary. The Executive’s base salary will be US$460,000 per year. The Executive’s base salary will be reviewed annually by the Chief Executive Officer of the Company and is subject to increase but not decrease except for an across-the-board salary reduction affecting all senior executives of the Company. The base salary in effect at any given time is referred to as “Base Salary” and this Agreement need not be modified to reflect a change in Base Salary. 

Exhibit 10.1

The Base Salary is subject to withholding and payable in a manner that is consistent with the Company’s usual payroll practices for senior executives.

Section 3.     Integration; Amendment; Governing Law. The Employment Agreement, as amended to date, constitutes the entire agreement between the Parties with respect to the subject matter hereof. This Amendment may be amended or modified only by a written instrument signed by the Executive and by a duly authorized representative of the Company. This is a Pennsylvania contract and is to be construed under and be governed in all respects by the laws of the Commonwealth of Pennsylvania without giving effect to the conflict of laws principles of that state.

Section 4.   Counterparts. This Agreement may be executed in any number of counterparts, and by each party on separate counterparts, each of which counterparts, when so executed and delivered is to be taken to be an original; but those counterparts together constitute one and the same document. PDF, facsimile, scanned, and electronic signatures have the same legal effect as original ink signatures.

Section 5.     Voluntary Nature of Agreement. The Executive acknowledges and agrees that he is executing this Amendment voluntarily and without any duress or undue influence by the Company or anyone else. The Executive further acknowledges and agrees that he has carefully read this Amendment and that he has asked any questions needed for him to fully understand the terms, consequences, and binding effect of this Amendment. The Executive agrees that he has been provided an opportunity to seek the advice of an attorney of his choice before signing this Amendment.

The Parties are executing this Amendment as of the date set forth in the introductory paragraph.

ARBUTUS BIOPHARMA, INC.

By: /s/ William H. Collier
_______________________________________
Printed Name: William H. Collier
Title: President & CEO

EXECUTIVE

/s/ Michael J. McElhaugh
__________________________________ 
Printed Name: Michael J. McElhaugh

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