Document:

ex_10-7.htm

Exhibit 10.7

 

FIRST AMENDMENT TO PREFERRED STOCK PURCHASE AGREEMENT

 

 

This First Amendment to Preferred Stock Purchase Agreement (“Amendment”) is entered into on November 8, 2011, between Uluru Inc., a Nevada corporation ( “Company”) and  Ironridge Global III, LLC, a Delaware limited liability company ("Purchaser").

 

Recitals

 

WHEREAS, on September 13, 2011, Company entered into a Preferred Stock Purchase Agreement (“Agreement”) with Purchaser under which Purchaser is committed to purchase for cash up to $650,000 of the Company’s redeemable, convertible Series A Preferred Stock (“Preferred”) at $10,000 per Preferred Share.

 

WHEREAS, on September 20, 2011, Purchaser funded the first $150,000 Closing under the Agreement.

 

WHEREAS, the remaining Closings under the Agreement are subject to satisfaction of the timing conditions set forth in Section II.C.2 of the Agreement.

 

WHEREAS, in order to effect an immediate Closing under the Agreement, the parties desire to amend the Agreement on the terms set forth in this Amendment.

 

Agreement

 

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

 

1. Amendments.

 

a. Section II.C.2 of the Agreement is hereby amended in its entirely and replaced with the following:

 

“2.  Closings.  Purchaser will purchase and make payment for the following portions of Preferred Shares, in cash by wire transfer of immediately available funds to an account designated by Company, and Company will deliver the Preferred Shares to Purchaser by reputable overnight courier (each, a “Closing”), on each of the following Trading Days (each a “Closing Date”):

 

a.           15 Preferred Shares for $150,000.00 on the earlier of (i) 3 Trading Days after the Notice Date; and (ii) the Trading Day that aggregate trading volume of the Common Stock on the Trading Market after the Notice Date, as reported by Bloomberg, equals or exceeds $300,000.00; in each case excluding any Trading Day on which the Common Stock has traded below the Floor Price;

 

b.           10 Preferred Shares for $100,000.00 on November 9, 2011;

 

c.           25 Preferred Shares for $250,000.00 on the earlier of (i) 20 Trading Days after the second Closing Date; and (ii) the Trading Day that aggregate trading volume of the Common Stock on the Trading Market after the prior Closing Date, as reported by Bloomberg, equals or exceeds $750,000.00; in each case excluding any Trading Day on which the daily VWAP, as reported by Bloomberg, is at or below the Floor Price; and

 

  

  

  

 

d.           15 Preferred Shares for $150,000.00 on the earlier of (i) 20 Trading Days after the third Closing Date; and (ii) the Trading Day that aggregate trading volume of the Common Stock on the Trading Market after the prior Closing Date, as reported by Bloomberg, equals or exceeds $450,000.00; in each case excluding any Trading Day on which the daily VWAP, as reported by Bloomberg, is at or below the Floor Price.”

 

b. The defined term “Floor Price” in Exhibit 1 of the Agreement is hereby amended in its entirely and replaced with the following:

 

 “Floor Price” means $0.3400 per share of Common Stock.

 

c. Section II.C.6 of the Agreement is hereby amended in its entirely and replaced with the following:

 

	
  

	
“6.   Company Election.  The Company may, at Company’s sole option in Company’s absolute discretion, give Purchaser written notice that Company makes an irrevocable election (“Election”) to have Trading Days after the date of the Election on which the VWAP is at or below the Floor Price included for purposes of Section II.C.2.c and/or Section II.C.2.d, in which case the Price per Preferred Share with respect to such Closing will be equal to $10,000, multiplied by the average of the daily VWAPs from the date of the Election to the date of the Closing, multiplied by 0.85, divided by the Floor Price.”

 

2.           Entire Agreement.  This Amendment, together with the Agreement which (except as amended hereby) is incorporated herein by reference, contains the entire agreement and understanding of the parties, and supersedes all prior and contemporaneous agreements, term sheets, letters, discussions, communications and understandings, both oral and written, which the parties acknowledge have been merged into this Amendment.  No party, representative, attorney or agent has relied upon any collateral contract, agreement, assurance, promise, understanding or representation not expressly set forth hereinabove.  The parties hereby expressly waive all rights and remedies, at law and in equity, directly or indirectly arising out of or relating to, or which may arise as a result of, any Person’s reliance on any such assurance.

 

  

  

  

 

3.           Ratification of Agreement.  Capitalized terms used but not defined herein shall have the meanings set forth in the Agreement.  This Amendment shall be deemed to be a Transaction Document.  Except as set forth in this Amendment, the Agreement, all agreements entered into contemporaneously therewith, and all of the terms, conditions, representations, warranties, covenants and provisions set forth therein, are hereby confirmed and ratified in all respects, and shall remain in full force and effect.

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized signatories as of the date first set forth above.

 

Company:

ULURU INC.,

a Nevada corporation

	  
	  	  	  
	  	  	  
	
By:

	  	
/s/ Kerry Gray

	  
	  	
Name:

	
Kerry Gray

	  
	  	
Title:

	
Chief Executive Officer

 

	  
	  	  	  
	  	  	  
	
By:

	  	
/s/ Terry Wallberg

	  
	  	
Name:

	
Terry Wallberg

	  
	  	
Title:

	
Chief Financial Officer

Purchaser:

IRONRIDGE GLOBAL III, LLC,

a Delaware limited liability company

	  
	  	  	  
	  	  	  
	
By:

	  	
/s/ Richard Kreger

	  
	  	
Name:

	
Richard Kreger

	  
	  	
Title:

	
Managing Directorexh_101.htm

Exhibit 10.1

 

FEDERAL DEPOSIT INSURANCE CORPORATION

WASHINGTON, D.C.

__________________________________

)

In the Matter of                                                                        )       SUPERVISORY

)       PROMPT CORRECTIVE ACTION

COMMUNITY SHORES BANK                                            )       DIRECTIVE

MUSKEGON, MICHIGAN                                                     )

)

)       FDIC–11–412PCAS

(INSURED STATE NONMEMBER BANK)                        )

__________________________________                    )

WHEREAS, Community Shores Bank, Muskegon, Michigan (“Bank”), is an undercapitalized depository institution as that term is defined in Section 38(b)(1) of the Federal Deposit Insurance Act (“Act”), 12 U.S.C. § 1831o(b)(1), and section 325.103 of the Federal Deposit Insurance Corporation (“FDIC”) Rules and Regulations, 12 C.F.R. § 325.103;

 

WHEREAS, pursuant to a letter dated February 8, 2011, the FDIC notified the Bank of its undercapitalized capital category as a result of the filing of the December 31, 2010 Call Report and required the Bank to submit an acceptable capital restoration plan compliant with Section 38(e)(2) of the Act, 12 U.S.C. § 1831o(e)(2), and section 325.104 for the FDIC Rules and Regulations, 12 C.F.R. § 325.104;

 

WHEREAS, the Bank submitted a capital restoration plan dated March 14, 2011, that failed to adequately specify the information required under Section 38(e)(2) of the Act, 12

U.S.C. § 1831o(e)(2), and section 325.104 of the FDIC Rules and Regulations, 12 C.F.R. § 325.104;

 

  

  

  

WHEREAS, on April 29, 2011, the Bank submitted a revised capital restoration plan that also failed to satisfy the requirements of Section 38(e)(2) of the Act, 12 U.S.C. § 1831o(e)(2), and section 325.104 of the FDIC Rules and Regulations, 12 C.F.R. § 325.104;

 

WHEREAS, the Bank’s condition continues to deteriorate;

 

WHEREAS, the Bank’s management has not demonstrated the ability to return the Bank to a safe and sound condition;

 

WHEREAS, the Bank’s unacceptable capital restoration plan and deteriorating condition and management’s inability to return the Bank to a safe and sound condition require that prompt corrective action be taken immediately;

 

WHEREAS, the actions in this SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE (“Directive”) are necessary to carry out the purposes of Section 38 of the Act including Section 38(e)(5), 12 U.S.C. § 1831o(e)(5);

 

THEREFORE, the FDIC finds it necessary, in order to carry out the purposes of Section 38 of the Act, to issue this Directive without providing notice as set forth in section 308.201(a)(1) of the FDIC’s Rules of Practice and Procedure, 12 C.F.R. § 308.201(a)(1), and hereby issues this Directive pursuant to Section 38 of the Act, 12 U.S.C. § 1831o, and section 308.201(a)(2) of the FDIC’s Rules of Practice and Procedure, 12 C.F.R. § 308.201(a)(2).

 

  

  

  

SUPERVISORY PROMPT CORRECTIVE ACTION DIRECTIVE

 

IT IS HEREBY DIRECTED:

 

(a)           That within 60 days of the effective date of this Directive, the Bank shall increase the volume of capital to a level sufficient to restore the Bank to an “adequately capitalized” capital category as defined in section 325.103(b)(2) of the FDIC Rules and Regulations, 12 C.F.R. § 325.103(b)(2).

 

(b)           Any increase in Tier 1 capital necessary to meet the requirements of this Directive may be accomplished by the following:

 

	
(i)  

	
the sale of common stock; or

	
(ii)  

	
the sale of non cumulative perpetual preferred stock; or

	
(iii)  

	
the direct contribution of cash by the board of directors and/or shareholders of the Bank; or

	
(iv)  

	
any other means acceptable to the Regional Director of the FDIC’s Chicago Regional Office.

 

(c)           Any increase in Tier 1 capital necessary to meet the requirements of this Directive may not be accomplished through a deduction from the Bank’s allowance for loan and lease losses.

 

FURTHER DIRECTED, that the provisions of this Directive shall not affect the obligations imposed on the Bank by Section 38 of the Act, 12 U.S.C. § 1831o, or by the mandatory provisions applicable to undercapitalized institutions found at Section 325.105(a)(1)–(2) of the FDIC Rules and Regulations, 12 C.F.R. § 325.105.

 

  

  

  

FURTHER DIRECTED, that the provisions of this Directive shall not affect the obligations of the Bank pursuant to any other action issued against the Bank by the FDIC;

 

FURTHER DIRECTED, that this Directive shall become effective immediately.

 

Each provision of this Directive shall be binding upon the Bank, its directors, officers, employees, agents, successors, assigns, and other institution-affiliated parties of the Bank.

 

Each provision of this Directive shall remain effective and enforceable until the Bank has been adequately capitalized on average for four (4) consecutive calendar quarters, except to the extent that any provision shall be modified, terminated, suspended, or set aside by the FDIC.

 

The Bank may file a written appeal of this Directive within fourteen (14) calendar days from the date of the issuance of this Directive as provided in section 308.201(a)(2) of the FDIC’s Rules of Practice and Procedure, 12 C.F.R. § 308.201(a)(2).

 

The appeal shall be filed with M. Anthony Lowe, Regional Director, Federal Deposit Insurance Corporation, Chicago Regional Office, 300 South Riverside Plaza, Suite 1700, Chicago, Illinois, 60606, with a copy to Timothy E. Divis, Regional Counsel, Federal Deposit Insurance Corporation, Chicago Regional Office, 300 South Riverside Plaza, Suite 1700, Chicago, Illinois 60606.

 

  

  

  

Pursuant to delegated authority.

Date this _17TH___ day of August, 2011.

/s/                                                              

M. Anthony Lowe

Regional Director

Division of Risk Management

Supervision

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