Document:

Exhibit 10.7.3

 

TALECRIS
BIOTHERAPEUTICS HOLDINGS CORP.

2009
LONG-TERM INCENTIVE PLAN

 

 

Restricted Share Unit Award
Agreement

 

 

You are hereby awarded
Restricted Share Units (the “RSUs”) subject to the terms and conditions
set forth in this Restricted Share Unit Award Agreement (the “Award
Agreement” or “Award”), and in the Talecris Biotherapeutics Holdings
Corp. 2009 Long-Term Incentive Plan (the “Plan”).  A copy of the Plan is attached as Exhibit A, and a
prospectus describing the Plan’s material terms is attached or will be
delivered to you separately.  Terms below that begin with capital
letters have the special meaning set forth in the Plan or in this Award
Agreement.

 

This
Award is conditioned on your execution of this Award Agreement within 20 (twenty)
days after the Grant Date specified in Section 1 below.  By executing this Award Agreement, you will be
irrevocably agreeing that all of your rights under this Award will be
determined solely and exclusively by reference to the terms and conditions of
the Plan, subject to the provisions set forth below.  As a result, you should not execute
this Award Agreement until you have carefully considered the terms and
conditions of the Plan and this Award, plus the information disclosed within
the attached Plan prospectus, and (ii) consulted with your personal legal
and tax advisors about all of these documents.

 

1.                                       Specific Terms. 
Your RSUs have the following terms:

 

	
  Name of Participant

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Number of RSUs Subject
  to Award

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Purchase Price per
  Share (if applicable)

  	
   

  	
  Not applicable.

  
	
   

  	
   

  	
   

  
	
  Grant Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vesting

  	
   

  	
  Your Award will vest at
  the rate of one-third (1/3) on each of April 1, 2011, April 1, 2012
  and April 1, 2013, provided that either (i) your Continuous Service
  has not ended before the particular vesting date or (ii) if your
  Continuous Service has ended before a particular vesting date, you qualify
  for post-retirement vesting as provided in Section 3 below (all subject
  to any employment agreement between you and the Company).

  
	
   

  	
   

  	
   

  
	
  Accelerated Vesting

  	
   

  	
  You will become 100%
  vested in this Award if your Continuous Service ends due to your death or
  your Disability as defined in the Plan.

  
	
   

  	
   

  	
   

  
	
  Deferral Elections

  	
   

  	
  o Allowed in accordance with
  Section 8(f) and 9 of the Plan 

  x Not allowed.

  
	
   

  	
   

  	
   

  
	
  Recapture and
  Recoupment

  	
   

  	
  x Section 25 of the Plan shall
  apply re Termination, Rescission, and Recapture of this Award. 

  o Section 26 shall apply re
  Recoupment of this Award.

  

 

 

2.                                       Termination of Continuous
Service.  Subject to the terms of any employment agreement
between you and the Company (and/or any Affiliate) that is in effect when your
Continuous Service terminates and Section 3 below, this Award shall be
canceled and become automatically null and void immediately after termination
of your Continuous Service for any reason, but only to the extent you have not
become vested, pursuant to terms of Section 1 above, on or before your
Continuous Service ends.

 

3.                                       Post-Retirement Vesting.   In the event
that (i) your Continuous Service has terminated prior to a vesting date by
reason of your Retirement as defined in the Plan and (ii) you have not
become “Otherwise Employed,” then your RSUs will continue to vest in the same
manner as if you had remained in Continuous Service.  In the event that you become Otherwise Employed
or fail to provide the Committee with written notice within 10 days after you
have accepted an employment or consulting position with an employer unrelated
to the Company, then this Award shall be canceled and become automatically null
and void, but only to the extent you have not become vested, pursuant to terms
of Section 1 above or this Section, on or before you became Otherwise
Employed.  For purposes of this Award, “Otherwise
Employed” means that following termination of your Continuous Service you have
accepted an employment or consulting position with an employer unrelated to the
Company; provided that you shall not be considered “Otherwise Employed” if you
have presented the Committee with verifiable evidence establishing that your
new position may not reasonably be expected to result in base pay and bonus
over a period of a calendar year greater than 50 percent of the average of your
base pay and bonus for your last two calendar years of employment.  In the event of a dispute regarding whether
you have become Otherwise Employed, the Committee shall make a final
determination as provided in Section 4(d) of the Plan.  For the avoidance of confusion, investment
income or income incurred by reason of vesting of Awards or exercise of Options
awarded by the Company, shall not be considered income for purposes of
determining whether you have become Otherwise Employed.

 

4.                                       Satisfaction of Vesting
Restrictions.  No Shares will be issued before you complete
the requirements that are necessary for you to vest in the Shares underlying
your RSUs.  As soon as practicable after
the later of (i) the date on which your RSUs vest in whole or in part, or (ii) the
distribution date or dates set forth in your deferral and distribution election
forms (if allowed under Section 1 and made by you), the Company will issue
to you or your duly-authorized transferee, free from vesting restrictions (but
subject to such legends as the Company determines to be appropriate), one Share
for each vested RSU with such number of Shares issued to you being reduced by a
number of Shares having a fair market value equal to the minimum statutory tax
withholding required in connection with the vesting of your RSUs, and with cash
being withheld from your pay for any additional withholding and employment
taxes that applicable tax laws may require. 
Certificates shall not be delivered to you unless all applicable
employment and tax-withholding obligations have been satisfied.

 

5.                                       Dividends.  Section 8(e) of
the Plan shall determine your rights to collect any cash or Share dividends
that are declared and paid to the holders of Shares between the Grant Date and
each vesting or deferred settlement date upon which you are entitled to receive
Shares to settle this Award.  To the
extent that your Continuous Service ends before full vesting of the RSUs
subject to this Award, you will forfeit all cash and Share-based dividends that
are attributable to all of your non-vested RSUs.

 

2

 

6.                                       Designation of Beneficiary. 
Notwithstanding anything to the contrary contained herein or in the
Plan, following the execution of this Award Agreement, you may expressly
designate a death beneficiary (the “Beneficiary”) to your interest, if any, in
this Award and any underlying Shares. 
You shall designate the Beneficiary by completing and executing a
designation of beneficiary agreement substantially in the form attached hereto
as Exhibit B  (the “Designation
of Death  Beneficiary”) and
delivering an executed copy of the Designation of Beneficiary to the
Company.  To the extent you do not duly
designate a beneficiary who survives you, your estate will automatically be
your beneficiary.

 

7.                                       Restrictions on Transfer
of Award.
Your rights under this Award Agreement may not be sold, pledged, or otherwise
transferred without the prior written consent of the Committee.

 

8.                                       Taxes. 
Except to the extent otherwise specifically provided in an employment
agreement between you and the Company, by signing this Award Agreement, you
acknowledge that you shall be solely responsible for the satisfaction of any
applicable taxes that may arise pursuant to this Award (including taxes arising
under Code Section 409A (regarding deferred compensation) or 4999
(regarding golden parachute excise taxes), and that neither the Company nor the
Administrator shall have any obligation whatsoever to pay such taxes or to
otherwise indemnify or hold you harmless from any or all of such taxes.  The Committee shall have the sole discretion
to interpret the requirements of the Code, including Section 409A, for
purposes of the Plan and this Award Agreement.

 

9.                                       Not a Contract of
Employment.  By executing this Award Agreement you
acknowledge and agree that (i) nothing in this Award Agreement or the Plan
confers on you any right to continue an employment, service or consulting
relationship with the Company, nor shall it affect in any way your right or the
Company’s right to terminate your employment, service, or consulting
relationship at any time, with or without Cause; and (ii) the Company
would not have granted this Award to you but for these acknowledgements and
agreements.

 

10.                                 Long-term Consideration
for Award.  If Section 1 above
provides for the application of Plan Section 25 to this Award, then the
terms and conditions set forth in your existing Talecris Intellectual Property
Agreement or such other employment agreement that includes terms intended to
protect Talecris’ business interests, as amended from time-to-time in
accordance with its terms, (the “Business Protection Agreement”) are hereby
incorporated by reference and made an integral part of this Award
Agreement.  An invalidation or
incompletion of all or part of the Business Protection Agreement, or your
commencement of litigation to invalidate, modify, or alter the terms and
conditions set forth your Business Protection Agreement, shall cause this Award
to become null, void, and unenforceable.

 

11.                                 Investment Purposes. By executing this Award, you represent
and warrant that any Shares issued to you pursuant to your RSUs will be for
investment for your own account and not with a view to, for resale in
connection with, or with an intent of participating directly or indirectly in,
any distribution of such Shares within the meaning of the Securities Act of 1933,
as amended.

 

12.                                 Securities Law
Restrictions.  Regardless of whether the offering and sale
of Shares under the Plan have been registered under the Securities Act of 1933,
as amended (the “Securities Act”), or have been registered or qualified under
the securities laws of any state, the 

 

3

 

Company at its discretion may impose restrictions upon the sale, pledge
or other transfer of such Shares (including the placement of appropriate
legends on stock certificates or the imposition of stop-transfer instructions)
if, in the judgment of the Company, such restrictions are necessary or
desirable in order to achieve compliance with the Securities Act or the
securities laws of any state or any other law or to enforce the intent of this
Award.

 

13.                                 Headings.  Section and
other headings contained in this Award Agreement are for reference purposes
only and are not intended to describe, interpret, define or limit the scope or
intent of this Award Agreement or any provision hereof.

 

14.                                 Severability. 
Every provision of this Award Agreement and of the Plan is intended to
be severable.  If any term hereof is
illegal or invalid for any reason, such illegality or invalidity shall not
affect the validity or legality of the remaining terms of this Award Agreement.

 

15.                                 Counterparts. 
This Award Agreement may be executed by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an
original, but all such counterparts shall together constitute one and the same
instrument.

 

16.                                 Notices. 
Any notice or communication required or permitted by any provision of
this Award Agreement to be given to you shall be in writing and shall be
delivered electronically, personally, or sent by mail, addressed to you at the
last address that the Company had for you on its records.  Each party may, from time to time, by notice
to the other party hereto, specify a new address for delivery of notices
relating to this Award Agreement.  Any
such notice shall be deemed to be given as of the date such notice is
personally or electronically delivered or properly mailed.

 

17.                                 Binding Effect. 
Except as otherwise provided in this Award Agreement or in the Plan,
every covenant, term, and provision of this Award Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective heirs,
legatees, legal representatives, successors, transferees, and assigns.

 

18.                                 Modifications. 
This Award Agreement may be modified or amended at any time, in accordance
with Section 15 of the Plan and provided that you must consent in writing
to any modification that adversely and materially affects any rights or
obligations under this Award Agreement.

 

19.                                 Plan Governs. 
By signing this Award Agreement, you acknowledge that you have received
a copy of the Plan and that your Award Agreement is subject to all the
provisions contained in the Plan, the provisions of which are made a part of
this Award Agreement and your Award is subject to all interpretations, amendments,
rules and regulations which from time to time may be promulgated and
adopted pursuant to the Plan.  In the
event of a conflict between the provisions of this Award Agreement and those of
the Plan, the provisions of the Plan shall control.

 

20.                                 Governing Law. 
The laws of the State of Delaware shall govern the validity of this
Award Agreement, the construction of its terms, and the interpretation of the
rights and duties of the parties hereto.

 

4

 

BY
YOUR SIGNATURE BELOW, along with the signature of the Company’s representative,
you and the Company agree that this Award is made under and governed by the
terms and conditions of this Award Agreement and the Plan.

 

 

	
   

  	
  TALECRIS BIOTHERAPEUTICS
  HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  PARTICIPANT

  
	
   

  	
   

  
	
   

  	
  The undersigned
  Participant hereby accepts the terms of this Award Agreement and the Plan.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name of Participant:

  	
   

  
					

 

5

 

Exhibit A

 

TALECRIS BIOTHERAPEUTICS HOLDINGS
CORP.

2009 LONG-TERM INCENTIVE PLAN

 

 

Plan Document

 

 

 

Exhibit B

 

TALECRIS BIOTHERAPEUTICS HOLDINGS
CORP.

2009 LONG-TERM INCENTIVE PLAN

 

 

Designation of Death Beneficiary

 

 

In
connection with the Awards designated below that I have received pursuant to
the Plan, I hereby designate the person specified below as the beneficiary upon
my death of my interest in such Awards. 
This designation shall remain in effect until revoked in writing by me.

 

Name
of Beneficiary:

 

Address:

 

 

 

Social
Security No.:

 

This
beneficiary designation relates to any and all of my rights under the following
Award or Awards:

 

o    any Award that I have received or ever receive under
the Plan.

 

o    the
Restricted Stock Unit Award that I received pursuant to an award agreement
dated                   
    ,         
between myself and the Company.

 

I
understand that this designation operates to entitle the above named
beneficiary, in the event of my death, to any and all of my rights under the
Award(s) designated above from the date this form is delivered to the
Company until such date as this designation is revoked in writing by me,
including by delivery to the Company of a written designation of beneficiary
executed by me on a later date.

 

	
   

  	
  Date:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name of Participant

  

 

Sworn to before me this

day of                         ,
20

 

Notary Public

County of

State ofex10_6-8.htm

 

                                                                                                                                                                                                                                           EXHIBIT
10.6.8

                   $375,000.00                                                                                                                                                                                                                                                                
May 12, 2009

QUICK-MED TECHNOLOGIES, INC.

2009 SENIOR CONVERTIBLE PROMISSORY NOTE 2

 

FOR VALUE RECEIVED, the undersigned, QUICK-MED TECHNOLOGIES, INC. (the “Borrower”), promises unconditionally to pay to the order of Michael Granito, his successors or assigns (the “Lender”) at the Lender’s offices at 1088 Shady Avenue, Pittsburgh, Pennsylvania 15232, or at such other place as the Lender may
from time to time designate, the principal amount of up to Three Hundred Seventy Five Thousand Dollars ($375,000.00) (the “Principal Amount”) or so much thereof as is disbursed to Borrower pursuant to this Note, together with interest on the unpaid Principal Amount outstanding from time to time at the rate or rates hereafter specified and any and all other sums which may be owing to the Lender by the Borrower pursuant to this Note.   The following terms shall apply to this Promissory
Note:

 

1.           Receipts of Funds.  Borrower acknowledges that it received Thirty Five Thousand Dollars ($35,000) each (the “Advance”) on the following dates – May 12 and 29, 2009, June 10, 12,
and 29, 2009, July 14 and 31, 2009, and August 12, 2009.   Borrower also acknowledges that it received the Advances of Fifty Thousand Dollars ($50,000) on August 14, 2009, and Forty Five Thousand Dollars ($45,000) on August 27, 2009.

 

2.           Interest Rate.  Interest shall accrue on the outstanding Principal Amount at the rate of eight percent (8%) per annum.  Interest shall be calculated on the basis of a year of three hundred
sixty five (365) days applied to the actual days on which there exists an unpaid balance under this Note.

 

3.           Interest Payments.  The Borrower shall pay accrued and unpaid interest on the Maturity Date, as the case may be and as hereinafter defined, and thereafter on demand until all sums due under this
Note, whether principal, interest, or other sums, have been paid in full.

 

4.           Principal.  Unless sooner paid or converted, the entire outstanding Principal Amount as well as all other sums under this Note that remain unpaid shall be due and payable on December 31, 2010 (the
“Maturity Date”); provided that, the Borrower shall make amortized payments on the outstanding principal plus interest during the term of this Note depending on the free cash flow from operations in excess of anticipated cost from operations as determined in the discretion of the Borrower’s Board of Directors.

 

5.           Prepayment.  Borrower may prepay any portion of the outstanding principal amount of this Promissory Note with 30 days prior written notice.

 

 

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6.           Conversion.  This Note shall be convertible into shares of Common Stock of the Borrower, on the terms and conditions set forth in this Section 6.

 

       (a)           Conversion Right.  Subject to the provisions of Section 6(d), at any time or times on or after the first
date of this Note, the Lender shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into validly issued, fully paid and nonassessable shares of Common Stock in accordance with Section 7(c), at the Conversion Rate (as defined below).

 

(b)           Conversion Rate.  The number of shares of Common Stock issuable upon conversion of any Conversion Amount pursuant to Section 6(a) shall be determined by dividing (x) such Conversion Amount by
(y) the Conversion Price (the “Conversion Rate”).

 

(i)           “Conversion Amount” means the portion of the Principal and interest to be converted, redeemed or otherwise with respect to which this determination is being made.

 

(ii)           “Conversion Price” means, as of any Conversion Date (as defined below), the closing price per share of the Borrower’s common stock at the date each Advance is received.

 

(iii)           Mechanics of Conversion.

 

(iv)           Optional Conversion.  To convert any Conversion Amount into shares of Common Stock on any date (a “Conversion Date”), the Lender shall (A) transmit by facsimile (or otherwise deliver),
for receipt on or prior to 5:00 p.m., Pacific Time, on such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit A (the “Conversion Notice”) to the Borrower and (B) if required by Section 6(c)(iii), surrender this Note to a common carrier for delivery to the Borrower as soon as practicable on or following such date (or an indemnification undertaking with respect to this Note in the case of its loss,
theft or destruction).  The Borrower shall transmit by facsimile a confirmation of receipt of such Conversion Notice to the Lender and the Borrower’s transfer agent, (the “Transfer Agent”).  The Transfer Agent shall issue and deliver to the address as specified in the Conversion Notice, a certificate or certificates, registered in the name of the Lender or its designee, for the number of shares of Common Stock to which the Lender shall be entitled.  If this Note
is physically surrendered for conversion as required by Section 6(c)(iii) and the outstanding Principal of this Note is greater than the Principal portion of the Conversion Amount being converted, then the Borrower shall as soon as practicable and in no event later than ten (10) Business Days after receipt of this Note and at its own expense, issue and deliver to the holder a new Note (in accordance with Section 15(d)) representing the outstanding Principal not converted.  The Person or Persons entitled
to receive the shares of Common Stock issuable upon a conversion of this Note shall be treated for all purposes as the record holder or holders of such shares of Common Stock on the Conversion Date.

 

(v)           Book-Entry.  Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Note in accordance with the terms hereof, the Lender shall not be required to physically
surrender this Note to the Borrower unless (A) the full Conversion Amount represented by this Note is being converted or (B) the Lender has provided the Borrower with prior written notice (which notice may be included in a Conversion Notice) requesting physical surrender and reissue of this Note.  The Lender and the Borrower shall maintain records showing the Principal converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Lender and the Borrower,
so as not to require physical surrender of this Note upon conversion.

 

(vi)           Legend.  The Converted Shares shall bear a legend that reads:

 

THE SECURITIES EVIDENCED BY THIS STOCK CERTIFICATE MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID
ACT.

 

7.           Adjustment.  If the Borrower at any time on or after the date of this Note subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares
of Common Stock into a greater number of shares, the Conversion Price in effect immediately prior to such subdivision will be proportionately reduced.  If the Borrower at any time on or after the Closing Date combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Conversion Price in effect immediately prior to such combination will be proportionately increased..

 

 

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8.           Negative Covenants. During the term of this Promissory Note and until all obligations hereunder are satisfied,  Borrower shall not, without first obtaining the affirmative written consent of the
Lender, which shall not be unreasonably withheld: (i) pay or declare any dividend or distribution on any common stock or preferred stock (“Capital Stock”), or apply any of its assets to the redemption, purchase or acquisition, directly or indirectly, through subsidiaries or otherwise, of any share capital or assets of another entity; (ii)  sell, transfer, lease, offer as collateral or otherwise dispose of any of its Capital Stock, assets or properties other than in the ordinary course
of business transactions or as unanimously approved by the Board of Directors; (iii)  enter into any  joint venture, business combination, merger, consolidation, recapitalization or other reorganization or permit any subsidiary to enter into any merger, consolidation, recapitalization or other reorganization; (iv) enter into any agreement, or allow any subsidiary, to enter any agreement to issue or offer any security, including, without limitation, any equity security, convertible note, secured
note or promissory note and (v)  amend or repeal any provision of, or add any provision to, the Borrower's certificate of incorporation or by-laws other than for subject matters not involving the items subject to Lender’s prior written consent listed above; provided however, Lender shall not be obligated to provide affirmative written consent, if in Lender’s reasonable opinion, consent to any of the foregoing
actions would: (a) impair Lender’s ability to be repaid under this Promissory Note or (b) impair Borrower’s ability to perform its obligations under the Share Exchange Agreement.

 

9.           Repayment Extension.  If any payment of principal or interest shall be due on a Saturday, Sunday or any other day on which banking institutions in the State of Florida are required or permitted
to be closed, such payment shall be made on the next succeeding business day and such extension of time shall be included in computing interest under this Note.

 

10.           Manner and Application of Payments.  All payments due hereunder shall be paid in lawful money of the United States of America which shall be legal tender in payment of all debts and dues, public
and private, in immediately available funds, without offset, deduction or recoupment. Any payment by check or draft shall be subject to the condition that any receipt issued therefore shall be ineffective unless the amount due is actually received by the Lender.

 

11.           Collateral; Security Interest.  The Borrower hereby grants to the Lender as collateral security for its obligations hereunder a security interest in and to all right, title and interest of the
Borrower in and to all of the Borrower’s personal property assets of each and every type more specifically identified in Article 9 of the Uniform Commercial Code as in effect in the State of Florida, whether now owned or hereafter acquired, wherever located.  The Lender is hereby authorized to file a financing statement naming the Borrower, as debtor, and the Lender, as secured party, in respect of all such collateral.  Lender’s interest in the collateral security shall be limited
to the outstanding principal and interest under the Note.  Notwithstanding the foregoing, the Lender shall not unreasonably withhold the Borrower’s request to restructure the security interest in case of a future debt or equity financing.

 

12.           No Other Outstanding Notes. The Borrower represents to the Lender that it has no other outstanding obligations, of which the Lender is unaware, and that this Promissory Note shall rank senior to all outstanding
obligations of the Lender, unless previously agreed by the Lender; this Note shall rank pari passu with all senior debt obligations owed to Michael Granito.

 

13.           Events of Default.  The occurrence of any one or more of the following events shall constitute an “Event of Default” under this Note:

 

(a)           the failure of the Borrower to pay any sum due under this Note within three (3) days after such payment was first due, whether by demand or otherwise;

 

(b)           the occurrence or commencement of a liquidation or bankruptcy or similar proceeding in respect of the Borrower or any of its assets and;

 

(c)           the breach by Lender of any of the Negative Covenants set forth in Section 9 of this Promissory Note.

 

14.           Rights and Remedies Upon Default.  Upon the occurrence of an Event of Default hereunder, the Lender, in the Lender’s sole discretion and without notice to the Borrower may:

 

(a) declare the entire outstanding Principal Amount, together with all accrued interest and all other sums due under this Note to be immediately due and payable, and the same shall thereupon become immediately due and payable without presentment, demand or notice which are hereby expressly waived; (b) exercise its right of setoff against
any money, funds, credits or other property of any nature whatsoever of the Borrower now or at any time hereafter in the possession of, in transit to or from, under the control or custody of, or on deposit with, the Lender in any capacity whatsoever, including without limitation, any balance of any deposit account and any credits with the Lender; (c) terminate any outstanding commitments of the Lender to the Borrower; (d) exercise all rights and remedies of a secured party in respect of the collateral referred
to above as provided under Article 9 of the Uniform Commercial Code as in effect on the date hereof in the State of Florida; and (e) exercise any or all rights, powers, and remedies now or hereafter existing at law, in equity, by statute or otherwise.

 

 

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15.           Remedies Cumulative.  Each right, power and remedy of the Lender hereunder, or now or hereafter existing at law, in equity, by statute or otherwise shall be cumulative and concurrent, and the exercise
or beginning of the exercise of any one or more of them shall not preclude the simultaneous or later exercise by the Lender of any or all such other rights, powers or remedies. No failure or delay by the Lender to insist upon the strict performance of any one or more provisions of this Note or to exercise any right, power or remedy consequent upon a breach thereof or default hereunder shall constitute a waiver thereof or preclude the Lender from exercising any such right, power or remedy. By accepting full or
partial payment after the due date of any amount of principal of or interest on this Note, or other amounts payable on demand, the Lender shall not be deemed to have waived the right either to require prompt payment when due and payable of all other amounts of principal of or interest on this Note or other amounts payable on demand, or to exercise any rights and remedies available to it in order to collect all such other amounts due and payable under this Note.

 

16.           Maximum Rate of Interest.  Notwithstanding any provision of this Note to the contrary, the Borrower shall not be obligated to pay interest pursuant to this Note in excess of the maximum rate of
interest permitted by the laws of any state determined to govern this Note or the laws of the United States applicable to loans in such state. If any provisions of this Note shall ever be construed to require the payment of any amount of interest in excess of that permitted by applicable law, then the interest to be paid pursuant to this Note shall be held subject to reduction to the amount allowed under applicable law and any sums paid in excess of the interest rate allowed by law shall be applied in reduction
of the principal balance outstanding pursuant to this Note.  The Borrower acknowledges that it has been contemplated at all times by the Borrower that the laws of the State of Florida will govern the maximum rate of interest that it is permissible for the Lender to charge the Borrower pursuant to this Note.

 

17.           Waiver of Presentment.  The Borrower waives demand, presentment, protest, and notice of demand, of non-payment, of dishonor, protest and all other demands in connection with the delivery, acceptance,
performance or enforcement of this Note.

 

18.           Choice of Law; Forum Selection; Consent to Jurisdiction.  This Note shall be governed by, construed and interpreted in accordance with the laws of the State of Florida. The Borrower hereby (a)
agrees that all disputes and matters whatsoever arising under, in connection with, or incident to this Note shall be litigated, if at all, in and before a court located in the State of Florida to the exclusion of the courts of any other state or country and (b) irrevocably submits to the non-exclusive jurisdiction of any Florida court or federal court sitting in the State of Florida in any action or proceeding arising out of or
relating to this Note, and hereby irrevocably waives any objection to the laying of venue of any such action or proceeding in any such court and any claim that any such action or proceeding has been brought in an inconvenient forum. A final judgment in any such action or proceeding shall be conclusive and may be enforced in any other jurisdiction by suit on the judgment or in any other manner provided by law.

 

19.           Service of Process.  The Borrower hereby consents to process being served in any suit, action or proceeding instituted in connection with this Note by the mailing of a copy thereof to the Borrower
by certified mail, postage prepaid, return receipt requested. The Borrower hereby irrevocably agrees that such service shall be deemed to be service of process upon the Borrower in any such suit, action or proceeding. Nothing in this Note shall affect the right of the Lender to serve process in any other manner otherwise permitted by law, and nothing in this Note will limit the right of the Lender otherwise to bring proceedings against the Borrower in the courts of any other jurisdiction or jurisdictions.

 

20.           Notice.  Any notice, demand, request or other communication which the Lender or the Borrower may be required to give hereunder shall be in writing and shall be effective when delivered and at the
address provided below:

 

	
  
	
(a)
	
if to the Lender, to Michael Granito at 1088 Shady Avenue, Pittsburgh, Pennsylvania 15232; and

 

	
  
	
(b)
	
if to the Borrower, to it at Quick-Med Technologies, Inc., 902 N.W. 4th Street, Gainesville, Florida 32601, Attention: Chief Financial Officer.

 

Notwithstanding anything to the contrary, all notices and demands for payment from the Lender actually received in writing by the Borrower shall be considered to be effective upon the receipt thereof by the Borrower regardless of the procedure or method utilized to accomplish delivery thereof to the Borrower.

 

21.           Miscellaneous.  Time is of the essence under this Note. The paragraph headings of this Note are for convenience only, and shall not limit or otherwise affect any of the terms hereof.  This
Note, if any, constitute the entire agreement between the parties with respect to their subject matter and supersede all prior letters, representations, or agreements, oral or written, with respect thereto.  The Lender may, without notice to or consent of the Borrower, sell, assign, pledge or transfer this Note or sell, assign, transfer or grant participations in all or any part of the obligations evidenced by this Note to others at any time and from time to time, and the Lender may divulge to any potential
assignee, transferee or participant all information, reports, financial statements and documents obtained in connection with this Note or otherwise.  No modification, release, or waiver of this Note shall be deemed to be made by the Lender unless in writing signed by the Lender, and each such waiver, if any, shall apply only with respect to the specific instance involved. No course of dealing or conduct shall be effective to modify, release or waive any

provisions of this Note.  This Note shall inure to the benefit of and be enforceable by the Lender and the Lender’s successors and assigns and any other person to whom the Lender may grant an interest in the obligations evidenced by this Note and shall be binding upon and enforceable against the Borrower and the Borrower’s
personal representatives, successors, heirs and assigns. Whenever used herein, the singular number shall include the plural, the plural the singular, and the use of the masculine, feminine, or neuter gender shall include all genders. This Note may be executed in any number of counterparts, all of which, when taken together shall constitute one Note.

 

[signature page follows]

 

 

-4-

 

IN WITNESS WHEREOF, the Borrower has duly executed this Note as of the day and year first hereinabove set forth.

 

 

 

	
                                  
	
QUICK-MED TECHNOLOGIES, INC.

 

	
                                
	
By: _Nam H. Nguyen___________________

	
  
	
                    Name:  Nam H. Nguyen

	
  
	
                    Title:  Chief Financial Officer

	
  
	
LENDER:

	
  
	
MICHAEL R. GRANITO

	
  
	
            Michael R. Granito____________________

 

 

 

 

 

 

-5-

 

EXHIBIT A

QUICK-MED TECHNOLOGIES, INC.

CONVERSION NOTICE

 

Reference is made to the Senior Convertible Note (the “Note”) issued to the undersigned by Quick-Med Technologies, Inc. (the “Company”).  In accordance with and pursuant to the Note, the undersigned
hereby elects to convert the Conversion Amount (as defined in the Note) of the Note indicated below into shares of Common Stock (as defined in the Note), as of the date specified below.

 

	
Date of Conversion:
	  
	
Aggregate Conversion Amount to be converted:
	  
	
Please confirm the following information:

	
Conversion Price:
	  
	
Number of shares of Common Stock to be issued:
	  
	
Please issue the Common Stock into which the Note is being converted in the following name and to the following address:

	
Issue to:
	  
	  	  
	  	  
	
Facsimile Number:
	  
	
Authorization:
	  
	
By:
	  
	
Title:
	  
	
Dated:
	  
	
Account Number:
	  
	
  (if electronic book entry transfer)
	  
	
Transaction Code Number:
	  
	
  (if electronic book entry transfer)
	  
	  	  

 

-6-

 

 

ACKNOWLEDGMENT

 

The Company hereby acknowledges this Conversion Notice and hereby directs [Insert Name of Transfer Agent] to issue the above indicated number of shares of Common Stock from the Company and acknowledged and agreed to by [Insert Name
of Transfer Agent].

 

	
QUICK-MED TECHNOLOGIES, INC.

	
By:                                                                

	
Name:

	
Title:

 

 

 

-7-

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