Document:

ex_355573.htm

EXHIBIT 4.1

 

AMENDMENT

 

TO THE

 

TAX BENEFIT PRESERVATION PLAN

 

This Amendment is dated as of April 1, 2022 (this “Amendment”) and amends the Tax Benefit Preservation Plan, dated July 24, 2020, (the “Rights Agreement”), by and between Enterprise Diversified, Inc., a Nevada corporation (the “Company”), and Colonial Stock Transfer Company, Inc., as rights agent (the “Rights Agent”).

 

WHEREAS, the Company may from time to time supplement or amend the Rights Agreement pursuant to, and on the terms and conditions set forth in, Section 27 thereof;

 

WHEREAS, the Company desires to amend the Rights Agreement as provided herein and subject to the terms and conditions hereof.

 

NOW THEREFORE, in consideration of the premises and the mutual agreements set forth in the Rights Agreement and in this Amendment the parties hereby agree as follows:

 

SECTION 1. Capitalized Terms. Capitalized terms used and not defined herein have the meanings ascribed to them in the Rights Agreement.

 

SECTION 2. Amendment of Section 7(a) of the Rights Agreement. Section 7(a) of the Rights Agreement is hereby amended to read in its entirety as follows:

 

Section 7.     Exercise of Rights; Purchase Price; Expiration Date of Rights.

 

(a)     Subject to Section 7(e) hereof or as otherwise provided in this Agreement, at any time after the Distribution Date the registered holder of any Rights Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein including, without limitation, the restrictions on exercisability set forth in Section 9(c), Section 11(a)(iii), and Section 23(a) hereof) in whole or in part upon surrender of the Rights Certificate, with the form of election to purchase and the certificate contained therein properly completed and duly executed, to the Rights Agent at the office or offices of the Rights Agent designated for such purpose, accompanied by a signature guarantee and such other documentation as the Rights Agent may reasonably request, together with payment of the aggregate Purchase Price with respect to the total number of one one-hundredths of a Preferred Share (or, following the occurrence of a Triggering Event, Common Shares, other securities, cash or other assets, as the case may be) as to which such surrendered Rights are then exercisable, at or prior to the earliest of (i) the Close of Business on April 1, 2022 (the “Final Expiration Date”), (ii) the time at which the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”), and (iii) the time at which the Rights are exchanged in full as provided in Section 24 hereof (the earliest of (i), (ii), and (iii) being herein referred to as the “Expiration Date”). Except for those provisions herein that expressly survive the termination of this Agreement, this Agreement shall terminate at such time as the Rights are no longer exercisable hereunder.

 

SECTION 3. Full Force and Effect. Except as expressly amended hereby, the Rights Agreement shall continue in full force and effect in accordance with the provisions thereof.

 

SECTION 4. Governing Law. This Amendment shall be deemed to be a contract made under the laws of the State of Nevada and for all purposes shall be governed by and construed in accordance with the laws thereof applicable to contracts to be made and performed entirely therein, provided, however, that all provisions regarding the rights, duties, and obligations of the Rights Agent shall be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed entirely within such State.

 

SECTION 5. Counterparts; Effectiveness. This Amendment may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. A signature to this Amendment transmitted electronically shall have the same authority, effect and enforceability as an original signature. This Amendment shall become effective on the date first referenced above.

 

 

 

[Signature page follows]

 

 

 

 

 

 

 

 

IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written above.

 

 

 

 

 

 

ENTERPRISE DIVERSIFIED, INC.

 

By: /s/ Steven L. Kiel

Name: Steven L. Kiel

Title: Executive Chairman

 

 

COLONIAL STOCK TRANSFER COMPANY, INC., AS RIGHTS AGENT

 

By: /s/ Jason Carter

Name: Jason Carter

Title: VP SalesExhibit 10.1

 

THIS PROMISSORY NOTE (“NOTE”)
HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THIS NOTE HAS BEEN ACQUIRED
FOR INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF REGISTRATION OF THE RESALE THEREOF UNDER THE SECURITIES
ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

 

PROMISSORY NOTE

 

	 	 	Dated: March 31, 2022
	 	 	 
	Principal Amount: Up to $600,000	 	New York, New York

 

Clarim Acquisition
Corp., a Delaware corporation and blank check company (the “Maker”), promises to pay to the order of Clarim Partners,
LLC or its registered assigns or successors in interest (the “Payee”), or order, the principal sum of up to Six Hundred
Thousand Dollars ($600,000) in lawful money of the United States of America, on the terms and conditions described below. All payments
on this Note shall be made by check or wire transfer of immediately available funds or as otherwise determined by the Maker to such account
as the Payee may from time to time designate by written notice in accordance with the provisions of this Note.

 

1.   Principal.
The principal balance of this Note shall be payable by the Maker on the earlier of: (i) February 2, 2023 or (ii) the date on which
Maker consummates a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination
with one or more businesses (the “Initial Business Combination”) (such date, the “Maturity Date”).
The principal balance may be prepaid at any time. Under no circumstances shall any individual, including but not limited to any officer,
director, employee or shareholder of the Maker, be obligated personally for any obligations or liabilities of the Maker hereunder. Notwithstanding
anything to the contrary in this Note, if the Company does not consummate the Initial Business Combination on or before February 2, 2023,
any outstanding obligations and liabilities of Maker hereunder will be forgiven, except to the extent that the Maker has funds available
to pay the Payee outside of the Trust Account (as defined below) to repay such loans.

 

2.   Interest;
Security. No interest shall accrue on the unpaid principal balance of this Note. The obligations of Maker under this Note shall not
be secured by assets of Maker.

 

3.   Drawdown
Requests. Maker and Payee agree that Maker may request drawdowns for costs reasonably related to the Maker’s ongoing working
capital needs and/or the Initial Business Combination, if applicable. The principal of this Note may be drawn down from time to time prior
to the Maturity Date (each, a “Drawdown Request”). Each Drawdown Request must be in the form attached hereto as Exhibit
A and state the amount to be drawn down, and must not be an amount less than Ten Thousand Dollars ($10,000) unless agreed upon by Maker
and Payee. Payee shall fund each Drawdown Request no later than five (5) business days after receipt of a Drawdown Request; provided,
however, that the maximum amount of drawdowns collectively under this Note is Six Hundred Thousand Dollars ($600,000). Once an
amount is drawn down under this Note, it shall not be available for future Drawdown Requests even if prepaid. No fees, payments or other
amounts shall be due to Payee in connection with, or as a result of, any Drawdown Request by Maker.

 

     

     

    

 

4.   Application
of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum due under this
Note, including (without limitation) reasonable attorney’s fees, then to the payment in full of any late charges and finally to
the reduction of the unpaid principal balance of this Note.

 

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

 

(a)   Failure
to Make Required Payments. Failure by Maker to pay the principal amount due pursuant to this Note within five (5) business days of
the Maturity Date, provided that no Event of Default shall exist if the amounts due hereunder are forgiven as provided herein.

 

(b)   Voluntary
Bankruptcy, Etc. The commencement by Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization, rehabilitation
or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian,
sequestrator (or other similar official) of Maker or for any substantial part of its property, or the making by it of any assignment for
the benefit of creditors, or the failure of Maker generally to pay its debts as such debts become due, or the taking of corporate action
by Maker in furtherance of any of the foregoing.

 

(c)   Involuntary
Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker in an
involuntary case under any applicable bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator, assignee, custodian,
trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering the winding-up or liquidation
of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days.

 

6.
Remedies.

 

(a)   Upon
the occurrence of an Event of Default specified in Section 5(a) hereof, Payee may, by written notice to Maker, declare this Note to be
due immediately and payable, whereupon the unpaid principal amount of this Note, and all other amounts payable hereunder, shall become
immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived,
anything contained herein or in the documents evidencing the same to the contrary notwithstanding.

 

(b)   Upon
the occurrence of an Event of Default specified in Sections 5(b) and 5(c), the unpaid principal balance of this Note, and all other sums
payable with regard to this Note, shall automatically and immediately become due and payable, in all cases without any action on the part
of Payee.

 

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7.   Waivers.
Maker and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor,
protest, and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by Payee under
the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting any property, real
or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or sale under execution, or
providing for any stay of execution, exemption from civil process, or extension of time for payment; and Maker agrees that any real estate
that may be levied upon pursuant to a judgment obtained by virtue hereof or any writ of execution issued hereon, may be sold upon any
such writ in whole or in part in any order desired by Payee.

 

8.   Unconditional
Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement of the
payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other party, and shall
not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or consented to by Payee,
and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted by Payee with respect to the payment
or other provisions of this Note, and agrees that additional makers, endorsers, guarantors, or sureties may become parties hereto without
notice to Maker or affecting Maker’s liability hereunder.

 

9.   Notices.
All notices, statements or other documents which are required or contemplated by this Note shall be made in writing and delivered:
(i) personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission
to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address or fax
number as may be designated in writing by such party or (iii) by electronic mail, to the electronic mail address most recently provided
to such party or such other electronic mail address as may be designated in writing by such party. Any notice or other communication so
transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the business day following receipt
of written confirmation, if sent by facsimile or electronic transmission, one (1) business day after delivery to an overnight courier
service or five (5) days after mailing if sent by mail.

 

10.   Construction.
THIS NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF.

 

11.   Severability.
Any provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

12.   Trust
Waiver. Notwithstanding anything herein to the contrary, the Payee hereby waives any and all right, title, interest or claim of any
kind (“Claim”) in or to any distribution of or from the trust account (the “Trust Account”) established
with the proceeds of the initial public offering (the “IPO”)
conducted by the Maker (including the deferred underwriters discounts and commissions) and the proceeds of the sale of the warrants issued
in a private placement prior to the closing of the IPO, as described in greater detail in the registration statement and prospectus filed
with the Securities and Exchange Commission in connection with the IPO, and hereby agrees not to seek recourse, reimbursement, payment
or satisfaction for any Claim against the Trust Account for any reason whatsoever.

 

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13.   Amendment;
Waiver. Any amendment or modification of this Note, or waiver of any provision hereof, may be made with, and only with, the written
consent of the Maker and the Payee. Any waiver by any party hereto of any provisions of this Note shall not operate or be construed as
a waiver of any other or subsequent breach.

 

14.   Assignment.
No assignment or transfer of this Note or any rights or obligations hereunder may be made by any party hereto (by operation of law or
otherwise) without the prior written consent of the other party hereto and any attempted assignment without the required consent shall
be void ab initio.

 

15.   Conversion.

 

(a)    Notwithstanding
anything contained in this Note to the contrary, upon the consummation of the Initial Business Combination and without any further action
by Maker or Payee, the outstanding amount under this Note shall convert into that number of warrants of Maker or its successor entity
(the “Conversion Warrants”), equal to: (x) the outstanding amount of this Note being converted pursuant to this
Section 15, divided by (y) $1.50, rounded up to the nearest whole number of warrants.

 

(b)     Upon
any conversion of the outstanding amount of this Note, (i) such outstanding amount shall be so converted and this Note shall become fully
paid and satisfied, (ii) Payee shall surrender and deliver this Note, duly endorsed, to Maker or such other address which Maker shall
designate against delivery of the Conversion Warrants and (iii) in exchange for the surrendered Note, Maker shall, at the direction of
Payee, deliver to Payee (or its members or their respective affiliates) (Payee or such other persons, the “Holders”)
the Conversion Warrants, which shall bear such legends as are legally required, in the opinion of legal counsel to Maker or by any other
agreement between Maker and Payee and/or applicable state and federal securities laws, rules and regulations.

 

(c)    The
Holders shall pay any and all issue and other taxes that may be payable with respect to any issue or delivery of the Conversion Warrants
upon the conversion of this Note pursuant hereto; provided, however, that the Holders shall not be obligated to pay any
transfer taxes resulting from any transfer requested by the Holders in connection with any such conversion.

 

(d)     The
Conversion Warrants shall not be issued upon conversion of this Note unless such issuance and such conversion comply with all applicable
provisions of law.

 

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16.   Venue;
Waiver Of Jury Trial.  THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF THE SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN
DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS NOTE, OR
FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT. EACH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF
ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE EXTENT PERMITTED BY APPLICABLE LAW,
IN SUCH FEDERAL COURT. EACH PARTY HERETO ALSO HEREBY AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE
AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY APPLICABLE LAW. NOTHING IN THIS
NOTE SHALL AFFECT ANY RIGHT THAT THE PAYEE OR ANY OTHER HOLDER MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS NOTE
AGAINST THE MAKER OR ITS PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION. IN ANY ACTION, SUIT OR PROCEEDING IN RESPECT OF OR ARISING
OUT OF THIS NOTE, THE PAYEE AND THE MAKER WAIVE TRIAL BY JURY, AND EACH OF MAKER AND PAYEE WAIVES (I) THE RIGHT TO INTERPOSE ANY SET-OFF
OF ANY NATURE OR DESCRIPTION, (II) ANY OBJECTION BASED ON FORUM NON CONVENIENS OR VENUE, AND (III) ANY CLAIM FOR CONSEQUENTIAL, PUNITIVE,
INCIDENTAL, EXEMPLARY OR SPECIAL DAMAGES.

 

17.   Registration
Rights

 

(a)     Reference
is made to that certain Registration Rights Agreement between the Maker and the parties thereto, dated as of January 28, 2021 (the “Registration
Rights Agreement”). All capitalized terms used in this Section 17 shall have the same meanings ascribed to them in the Registration
Rights Agreement. The Conversion Warrants shall constitute Working Capital Warrants under the Registration Rights Agreement.

 

(b)     The
Holders of the Conversion Warrants and their underlying securities shall be entitled to one Demand Registration, which shall be subject
to the same provisions as set forth in Section 2.1 of the Registration Rights Agreement.

 

(c)     The
Holders shall also be entitled to include the Conversion Warrants and their underlying securities in Piggyback Registrations, which shall
be subject to the same provisions as set forth in Section 2.2 of the Registration Rights Agreement; provided, however, that in the event
that an underwriter advises the Maker that the Maximum Number of Shares has been exceeded with respect to a Piggyback Registration, the
Holders shall not have any priority over the holders of any other Registrable Securities for inclusion in such Piggyback Registration.

 

(d)     Except
as set forth above, the Holders and the Maker, as applicable, shall have all of the same rights, duties and obligations set forth in the
Registration Rights Agreement.

 

18.   Entire
Agreement. This Note contains the entire agreement between the parties with respect to the subject matter hereof and supersedes and
replaces any and all prior agreements, understandings or discussions (whether oral, written, implied or otherwise) of the parties with
respect to the subject matter hereof.

 

19.   Headings.
Section headings herein are for convenience and reference purposes only and do not form a part of the substance of the Note.

 

20.   Counterparts;
Execution. This Note may be executed in two or more counterparts, each of which when so executed and delivered to the other party
shall be deemed an original. The executed page(s) from each original may be joined together and attached to one such original and shall
thereupon constitute one and the same instrument. Such counterparts may be delivered by facsimile or other electronic or digital transmission,
which shall not impair the legal validity thereof.

 

[Signature page follows]

 

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IN WITNESS WHEREOF, Maker, intending to be legally
bound hereby, has caused this Note to be duly executed by the undersigned as of the day and year first above written.

 

	 	CLARIM ACQUISITION CORP.
	 	 	 
	 	By: 	/s/ Jaymin Patel
	 	Name: 	Jaymin Patel
	 	Title:	Chief Financial Officer

 

     

     

    

 

IN WITNESS WHEREOF, Clarim Partners, LLC intending
to be legally bound hereby, has caused this Note to be duly executed by the undersigned as of the day and year first above written.

 

	 	CLARIM PARTNERS, LLC
	 	 	 
	 	By: 	/s/ Paul Stamoulis
	 	Name: 	Paul Stamoulis
	 	Title:	Senior Vice President

 

     

     

    

 

Exhibit A

 

Notice of Drawdown Request

 

[Date]

 

Clarim Partners, LLC 245 Fifth Avenue

Suite 1500

New York, NY 10016

 

Ladies and Gentlemen:

 

We refer to
the Promissory Note, dated as of March 31, 2022, as amended, restated, supplemented or otherwise modified from time to time (the “Note”;
capitalized terms used but not defined herein shall be given the meanings ascribed to such terms in the Note), by and between the undersigned
(the “Maker”) and Clarim Partners, LLC (the “Payee”).

 

Pursuant to Section
3 of the Note, the Maker hereby makes a Drawdown Request in the amount of $(the “Drawdown Amount”) to be
funded by the Payee within five (5) business days of the date hereof. The Maker hereby authorizes and directs the Payee to transfer the
proceeds of the Drawdown Amount to the Maker’s account.

 

	 	CLARIM ACQUISITION CORP.
	 	 	 
	 	By:	/s/ Jaymin Patel
	 	Name: 	Jaymin Patel
	 	Title:	Chief Financial Officer

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