Document:

Pulse Biosciences, Inc. 8-K

Exhibit 10.1

 

*******************************

 

LOAN AGREEMENT

 

Dated as of September 20, 2022

 

by and among

 

PULSE BIOSCIENCES, INC.

 

as the Borrower,

 

and

 

ROBERT DUGGAN,

 

as the Lender

 

*******************************

 

     

     

    

 

TABLE OF CONTENTS

 

	Section	 	 	 	 	Page
	 	 	 	 	 	 
	ARTICLE I.	 	DEFINITIONS AND ACCOUNTING TERMS	 	1
	 	SECTION 1.1.	 	Certain Defined Terms	 	1
	 	SECTION 1.2.	 	Terms Generally	 	5
	 	SECTION 1.3.	 	Computation of Time Periods	 	5
	 	SECTION 1.4.	 	Accounting Terms	 	6
	 	 	 	 	 	 	 
	ARTICLE II.	 	AMOUNTS AND TERMS OF THE ADVANCE	 	6
	 	SECTION 2.1.	 	Advance	 	6
	 	SECTION 2.2.	 	The Note	 	6
	 	SECTION 2.3.	 	Interest	 	6
	 	SECTION 2.4.	 	Costs and Expenses	 	6
	 	 	 	 	 	 	 
	ARTICLE III.	 	PAYMENTS, PREPAYMENTS, INCREASED COSTS AND TAXES	 	7
	 	SECTION 3.1.	 	Payments and Computations	 	7
	 	SECTION 3.2.	 	Voluntary Prepayments	 	7
	 	SECTION 3.3.	 	Taxes	 	7
	 	 	 	 	 	 	 
	ARTICLE IV.	 	CONDITIONS OF LENDING	 	8
	 	SECTION 4.1.	 	Conditions Precedent to the Advance	 	8
	 	 	 	 	 	 
	ARTICLE V.	 	REPRESENTATIONS AND WARRANTIES	 	9
	 	SECTION 5.1.	 	Existence	 	9
	 	SECTION 5.2.	 	Power and Authorization	 	9
	 	SECTION 5.3.	 	Binding Obligations	 	9
	 	SECTION 5.4.	 	No Conflict	 	9
	 	SECTION 5.5.	 	Taxes; Governmental Charges	 	9
	 	SECTION 5.6.	 	Licenses; Compliance with Law	 	9
	 	SECTION 5.7.	 	Absence of Financing Statements	 	10
	 	SECTION 5.8.	 	Litigation	 	10
	 	SECTION 5.9.	 	Solvency	 	10
	 	SECTION 5.10.	 	Material Contracts	 	10
	 	SECTION 5.11.	 	No Material Adverse Effect	 	10
	 	SECTION 5.12.	 	No Default or Event of Default	 	10
	 	SECTION 5.13.	 	Financial Statements	 	10
	 	SECTION 5.14.	 	Trademarks, Patents, Licenses	 	11
	 	SECTION 5.15.	 	Disclosure	 	11
	 	 	 	 	 	 
	ARTICLE VI.	 	AFFIRMATIVE COVENANTS OF THE BORROWER	 	11
	 	SECTION 6.1.	 	Compliance with Laws, Etc.	 	11
	 	SECTION 6.2.	 	Reporting and Notice Requirements	 	11
	 	SECTION 6.3.	 	Use of Proceeds	 	12
	 	SECTION 6.4.	 	Taxes and Liens	 	12
	 	SECTION 6.5.	 	Maintenance of Property	 	12
	 	SECTION 6.6.	 	Right of Inspection	 	12
	 	SECTION 6.7.	 	Insurance	 	13

 

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	 	SECTION 6.8.	 	Notice of Litigation	 	13
	 	SECTION 6.9.	 	Existence	 	13
	 	SECTION 6.10.	 	Further Assurances	 	13
	 	 	 	 	 	 	 
	ARTICLE VII.	 	NEGATIVE COVENANTS	 	13
	 	SECTION 7.1.	 	Impairment of Rights	 	13
	 	SECTION 7.2.	 	Restrictions on Debt	 	13
	 	SECTION 7.3.	 	Restrictions on Liens	 	14
	 	SECTION 7.4.	 	Change of Control	 	15
	 	SECTION 7.5.	 	Dispositions	 	15
	 	SECTION 7.6.	 	Changes in Organizational Documents	 	15
	 	 	 	 	 	 
	ARTICLE VIII.	 	EVENTS OF DEFAULT	 	15
	 	SECTION 8.1.	 	Events of Default	 	15
	 	 	 	 	 	 
	ARTICLE IX.	 	MISCELLANEOUS	 	17
	 	SECTION 9.1.	 	Survival of Representations and Warranties	 	17
	 	SECTION 9.2.	 	Amendments, Etc.	 	17
	 	SECTION 9.3.	 	Notices, Etc.	 	17
	 	SECTION 9.4.	 	No Waiver; Remedies	 	17
	 	SECTION 9.5.	 	Indemnification	 	18
	 	SECTION 9.6.	 	Right of Set-off	 	18
	 	SECTION 9.7.	 	Binding Effect	 	18
	 	SECTION 9.8.	 	Assignments and Participations	 	18
	 	SECTION 9.9.	 	Limitation on Agreements	 	19
	 	SECTION 9.10.	 	Severability	 	19
	 	SECTION 9.11.	 	Governing Law	 	19
	 	SECTION 9.12.	 	SUBMISSION TO JURISDICTION; WAIVERS	 	20
	 	SECTION 9.13.	 	Execution in Counterparts	 	20

 

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SCHEDULES:

 

Schedule A - Wire Instructions

 

EXHIBITS:

 

Exhibit A - Form of Note

 

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LOAN AGREEMENT

 

This Loan Agreement,
dated as of September 20, 2022 (this “Agreement”), is made among Pulse Biosciences, Inc., a Delaware corporation
(the “Borrower”), and Robert Duggan (the “Lender”).

 

RECITALS:

 

WHEREAS, Lender has
agreed to loan money to the Borrower for general corporate purposes and the payment of fees, costs and expenses related to the
transactions contemplated hereby, on the terms and subject to the provisions contained herein.

 

NOW THEREFORE, in consideration
of the premises and the mutual promises contained herein and for other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

 

SECTION 1.1. Certain
Defined Terms. As used in this Agreement, the following terms shall have the following meanings:

 

“Advance”
means an advance under Section 2.1.

 

“Affiliate”
means any Person which, directly or indirectly, controls or is controlled by or is under common control with another Person. For
purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by”
and “under common control with”), as used with respect to any Person, means the power to direct or cause the direction
of the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities or by
contract or otherwise.

 

“Agreement”
has the meaning specified in the preamble.

 

“Bankruptcy
Code” means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment
for the benefit of creditors, moratorium, rearrangement, arrangement, receivership, insolvency, administration, reorganization,
or similar debtor relief Laws of the United States or other applicable jurisdictions from time to time in effect and permitting
a debtor to obtain a stay or a compromise of the claims of its creditors or affecting the rights of creditors generally, including
for greater certainty any provisions of corporate statutes of like effect, where such statutes are used by a Person to propose
an arrangement.

 

“Borrower”
has the meaning in the preamble.

 

“Business
Day” means a day of the year on which banks are not required or authorized to close in New York, New York.

 

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“Capital
Lease” means any obligation to pay rent or other amounts under a lease of (or other agreement conveying the right to
use) any property (whether real, personal or mixed, immovable or movable) that is required to be classified and accounted for as
a capitalized lease obligation under GAAP.

 

“Capital
Stock” means any and all shares, interests, participations or other equivalents (however designated) of capital stock
of a corporation, any and all equivalent ownership interests in a Person (other than a corporation) and any and all warrants, rights
or options to purchase any of the foregoing.

 

“Change
of Control” means (a) the transfer (in one transaction or a series of transactions) of all or substantially all of the
assets or Capital Stock of the Borrower to any Person or group (as such term is used in Section 13(d)(3) of the Exchange Act);
(b) the liquidation or dissolution of the Borrower or the adoption of a plan by the equity holders of the Borrower relating to
the dissolution or liquidation of the Borrower; (c) the acquisition by any Person or group (as such term is used in Section 13(d)(3)
of the Exchange Act) of beneficial ownership, directly or indirectly, of Capital Stock of the Borrower representing a greater percentage
of the voting power of the total outstanding Capital Stock of the Borrower than the Capital Stock of the Borrower beneficially
owned by the Lender and its Affiliates; or (d) individuals who as of the date hereof constituted the board of directors of the
Borrower (together with any new directors who have been appointed by the Borrower, or whose nomination for election by the equity
holders of the Borrower, as the case may be, was approved by a vote of at least a majority of the directors then still in office
who were either directors as of the date hereof or whose election or nomination for election was previously so approved) cease
for any reason to constitute a majority of the board of directors of the Borrower then still in office.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time, and any successor statute.

 

“Control”
when used with respect to any Person means the power to direct the management and policies of such Person, directly or indirectly,
whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing.

 

“Debt”
means (without duplication), for any Person, (a) indebtedness of such Person for borrowed money or arising out of any extension
of credit to or for the account of such Person (including, without limitation, extensions of credit in the form of reimbursement
or payment obligations of such Person relating to letters of credit issued for the account of such Person) or for the deferred
purchase price of property or services; (b) indebtedness of the kind described in clause (a) of this definition which is secured
by (or for which the holder of such debt has any existing right, contingent or otherwise, to be secured by) any Lien upon or in
Property (including, without limitation, accounts and contract rights) owned by such Person, whether or not such Person has assumed
or become liable for the payment of such indebtedness or obligations; (c) all obligations as lessee under any Capital Lease; (d)
all contingent liabilities and obligations under direct or indirect guarantees in respect of, and obligations (contingent or otherwise)
to purchase or otherwise acquire, or otherwise to assure a creditor against loss in respect of, indebtedness or obligations of
others of the kinds referred to in clauses (a) through (c) above; and (e) any monetary obligation of a Person under or in
connection with a sale-leaseback or similar arrangement.

 

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“Debtor
Laws” means all applicable liquidation, conservatorship, bankruptcy, moratorium, arrangement, receivership, insolvency,
reorganization or similar laws including the Bankruptcy Code, or general equitable principles from time to time in effect affecting
the rights of creditors generally.

 

“Default”
means any event the occurrence of which does, or with the lapse of time or giving of notice or both would, constitute an Event
of Default.

 

“Dollars”
and “$” mean dollars in lawful
currency of the United States of America.

 

“Events
of Default” has the meaning specified in Section 8.1.

 

“Exchange
Act” shall mean the Securities Exchange Act of 1934, as amended.

 

“Face
Amount” means $65,000,000.

 

“GAAP”
shall mean generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting profession)
and the Securities and Exchange Commission, which are applicable to the circumstances as of the date of determination.

 

“Governmental
Authority” means any (domestic or foreign) federal, state, county, municipal, parish, provincial, or other government,
or any department, commission, board, court, agency, or any other instrumentality of any of them or any other political subdivision
thereof, and any entity exercising executive, legislative, judicial, regulatory, or administrative functions of, or pertaining
to, government, including, without limitation, any arbitration panel, any court, or any commission.

 

“Highest
Lawful Rate” means the maximum nonusurious legal interest rate, if any, that at any time or from time to time may be
contracted for, taken, reserved, charged, or received with respect to the Note or on other amounts, if any, due to the Lender pursuant
to this Agreement or any other Loan Document under laws applicable to the Lender which are presently in effect or, to the extent
allowed by law, under such applicable laws which may hereafter be in effect.

 

“Indemnitee”
has the meaning specified in Section 9.5.

 

“Issue
Date” means the date on which the Note is issued pursuant to this Agreement.

 

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“Knowledge,”
“knowledge,” or “known” means that Borrower has made such inquiries of the relevant Persons,
engaged in appropriate due diligence, and made such reviews of related documents as a reasonable Person would deem prudent, and
that in the course of such inquiries, due diligence, and inspections, no information has come to, or would reasonably be expected
to come to, the attention of Borrower that causes such Person to believe such representation or warranty to be untrue or misleading
in any respect.

 

“Legal
Requirement” means any order, constitution, law, ordinance, principle of common law, regulation, rule, statute or treaty
of any applicable Governmental Authority.

 

“Lender”
has the meaning specified in the preamble.

 

“Lien”
means any security interest, mortgage, pledge, hypothecation, charge, claim, option, right to acquire, adverse interest, assignment,
deposit arrangement, encumbrance, restriction, statutory or other lien, preference, priority or other security agreement or preferential
arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement, any financing
lease involving substantially the same economic effect as any of the foregoing, and the filing of any financing statement under
the Uniform Commercial Code or comparable law of any jurisdiction).

 

“Loan
Documents” means this Agreement, the Note and any document or instrument executed in connection with any of the foregoing.

 

“Material
Adverse Effect” means a material adverse effect on the business, assets, liabilities, operations, results of operations,
condition (financial or otherwise) or prospects of the Borrower, if any, that is material to the Borrower, taken as a whole, other
than as a result of adverse economic conditions in the United States generally or as a result of any act or omission contemplated
by this Agreement, that would reasonably prevent the ability of Borrower to perform its obligations hereunder.

 

“Maturity
Date” means the earliest to occur of (a) the Scheduled Maturity Date or (b) such earlier time to which the Obligations
may be accelerated under Section 8.1.

 

“Note”
means the promissory note issued under this Agreement pursuant to Section 2.2.

 

“Obligations”
means all of the obligations of the Borrower now or hereafter existing under the Loan Documents, whether for principal, interest,
fees, expenses, indemnification or otherwise.

 

“Permitted
Liens” has the meaning specified in Section 7.3.

 

“Person”
means an individual, partnership, limited liability company (including a business trust or a real estate investment trust), joint
stock company, trust, unincorporated association, corporation, joint venture or other entity, or a government or any political
subdivision or agency thereof.

 

    4

     

    

 

“Policies”
has the meaning specified in Section 6.7.

 

“Property”
means any interest or right in any kind of property or asset, whether real, personal, or mixed, owned or leased, tangible or intangible,
and whether now held or hereafter acquired.

 

“Scheduled
Maturity Date” means the eighteen (18) month anniversary of the Issue Date.

 

“Solvent”
means, at any time with respect to any Person, that at such time such Person (a) is able to pay its Debts as they mature and has
(and has a reasonable basis to believe it will continue to have) sufficient capital (and not unreasonably small capital) to carry
on its business consistent with its practices as of the date hereof, and (b) the assets and properties of such Person at a fair
valuation (and including as assets for this purpose at a fair valuation all rights of subrogation, contribution or indemnification
arising pursuant to any guarantees given by such Person) are greater than the liabilities of such Person, and including subordinated
and contingent liabilities computed at the amount which, such Person has a reasonable basis to believe, represents an amount which
can reasonably be expected to become an actual or matured liability (and including as to contingent liabilities arising pursuant
to any guarantee the face amount of such liability as reduced to reflect the probability of it becoming a matured liability).

 

“Term
Loan” means the term loan consisting of a single term loan in an aggregate principal amount equal to the Face Amount.

 

SECTION 1.2. Terms
Generally. The definitions in Section 1.1 apply equally to both the singular and plural forms of the terms defined.
Whenever the context requires, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include,”
“includes” and “including” shall be construed as if followed by the words “without limitation”.
The words “herein,” “hereof” and “hereunder” and words of similar import refer to this Agreement
(including the Exhibits hereto) in its entirety and not to any part hereof, unless the context otherwise requires. All references
herein to Articles, Sections, and Exhibits are references to Articles and Sections of, and Exhibits to, this Agreement unless the
context otherwise requires. Unless the context otherwise requires, any references to any agreement or other instrument or statute
or regulation are to such agreement, instrument, statute or regulation as amended and supplemented from time to time (and, in the
case of a statute or regulation, to any successor provisions). Any reference in this Agreement to a “day” or number
of “days” (without the explicit qualification of “business”) shall mean a calendar day or number of calendar
days. If any action or notice is to be taken or given on or by a particular day, and such day is not a Business Day, then such
action or notice shall be deferred until, or may be taken or given on, the next Business Day.

 

SECTION 1.3. Computation
of Time Periods. In this Agreement in the computation of periods of time from a specified date to a later specified date, unless
otherwise specified herein the word “from” means “from and including” and the words “to” and
“until” each means “to but excluding.”

 

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SECTION 1.4. Accounting
Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP consistent with those
applied in the preparation of the financial statements referred to in Section 6.2.

 

ARTICLE II.

AMOUNTS AND TERMS OF THE ADVANCE

 

SECTION 2.1. Advance.
Lender agrees, on the terms and conditions hereinafter set forth, to make an advance (“Advance”) on the date
hereof consisting of the Term Loan in an amount equal to the Face Amount, such that the amount advanced by the Lender will be $65,000,000,
less any cost, fees, and expenses to be paid to the Lender as provided herein including without limitation, all legal fees, costs,
and expenses incurred by Lender in connection with the Term Loan. The amount outstanding on such Term Loan shall be payable in
accordance with Section 3.1 hereof and shall mature and all outstanding principal thereof, together with accrued and unpaid
interest thereon, shall be due and payable on the Maturity Date.

 

SECTION 2.2. The
Note. The Borrower shall execute and deliver to the Lender to evidence the Advance, a term note (the “Note”)
in the amount of the Face Amount. The Note shall be substantially in the form of Exhibit A hereto with the blanks appropriately
filled, and shall mature on the Maturity Date, at which time all principal and interest then outstanding thereunder shall become
due and payable.

 

SECTION 2.3. Interest.
The outstanding principal amount of the Term Loan shall bear interest from and including the Issue Date, at a rate per annum equal
to 5.0%, payable quarterly commencing on January 1, 2023 in accordance with Section 3.1; provided that upon the occurrence
of (i) an Event of Default described in Section 8.1(a) or (ii) a Material Adverse Effect, the outstanding principal amount
of the Term Loan shall bear interest thereafter at a rate per annum equal to 7.0%.

 

All computations of
interest hereunder pursuant to this Article II shall be made on the basis of a year of 365 days for the actual number of days (including
the first day but excluding the last day) occurring in the period for which such interest is payable; provided, however, that the
Lender shall waive any interest after 360 days in any fiscal year.

 

SECTION 2.4. Costs
and Expenses. The Borrower agrees to reimburse Lender for all reasonable out-of-pocket costs and expenses, including, without
limitation, reasonable legal expenses and documented reasonable attorneys’ fees, incurred by Lender in connection with the
(i) due diligence in connection with, and documentation, negotiation and consummation of, the transactions contemplated hereunder
and any other transactions between the Borrower and Lender in connection therewith, including, without limitation, Uniform Commercial
Code and other public record searches and filings and overnight courier or other express or messenger delivery; (ii) collection,
protection or enforcement of any rights in or to the Collateral; (iii) collection of any Obligations; (iv) enforcement of this
Agreement or any other Loan Document (including, without limitation, any costs and expenses of any third party provider engaged
by Lender for such purpose); (v) services of any third party servicer in connection with the Obligations; and (vi) inspections
pursuant to Section 6.6.

 

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ARTICLE III.

PAYMENTS, PREPAYMENTS, INCREASED

COSTS AND TAXES

 

SECTION 3.1. Payments
and Computations.

 

(a)           The outstanding principal balance of the Term Loan shall be payable in cash on the Maturity Date, when all unpaid principal
of, and accrued and unpaid interest on, the Term Loan shall be due and payable in cash.

 

(b)           Each quarterly payment of interest due under the Note (other than at the Maturity Date) shall be payable in cash to the
Lender by the Borrower in accordance with the wire instructions set forth on Schedule A hereto or as the Lender and the Borrower
may otherwise agree.

 

(c)           Whenever any payment owed under the Note shall be stated to be due on a day other than a Business Day, such payment shall
be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment
of interest, as the case may be.

 

SECTION 3.2. Voluntary
Prepayments. The Borrower may, upon at least five (5) Business Days’ prior written notice to the Lender and without penalty,
prepay all or any portion of the outstanding Obligations. Such notice shall be irrevocable and the payment amount specified in
such notice shall be due and payable on the prepayment date described in such notice. Any amount of the Term Loan which is prepaid
in accordance with this Section may not be reborrowed.

 

SECTION 3.3. Taxes.

 

(a)           Any and all payments by the Borrower under the Note shall be made, in accordance with Section 3.1, free and clear
of and without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all
liabilities with respect thereto, excluding, in the case of the Lender, taxes imposed on its income, and franchise taxes imposed
on it, by the jurisdiction under the laws of which the Lender is organized or any political subdivision thereof. If the Borrower
shall be required by law to deduct any such amounts from or in respect of any sum payable under the Note to the Lender, (i) the
sum payable shall be increased as may be necessary so that after making all required deductions (including deductions applicable
to additional sums payable under this Section 3.3) the Lender receives an amount equal to the sum it would have received
had no such deductions been made, (ii) the Borrower shall make such deductions, and (iii) the Borrower shall pay the full amount
deducted to the relevant taxation authority or other authority in accordance with applicable law. The Borrower further agrees to
pay any present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies which arise
from any payment made under the Note or from the execution, delivery or registration of, or otherwise with respect to, this Agreement
or the Note.

 

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(b)           The Borrower will indemnify the Lender for the full amounts payable pursuant to Section 3.3(a) (including, without
limitation, any such amounts imposed by any jurisdiction on amounts payable under this Section 3.3) paid by the Lender and
any liability (including penalties, interest and expenses) arising therefrom or with respect thereto, whether or not such amounts
were correctly or legally asserted.

 

Without prejudice to
the survival of any other agreement of the Borrower hereunder, the agreements and obligations of the Borrower contained in this
Section 3.3 shall survive the payment in full of principal and interest under the Note.

 

ARTICLE IV.

CONDITIONS OF LENDING

 

SECTION 4.1. Conditions
Precedent to the Advance. The obligation of the Lender to make the Advance is subject to the prior satisfaction (or waiver
in writing), as determined by Lender, of each of the following conditions precedent as of the date hereof and to the Lender’s
continued satisfaction on the date hereof:

 

(a)           Lender shall have received in form and substance satisfactory to the Lender:

 

		(i)	a Note representing the aggregate amount of the Term Loan, duly executed by the Borrower and payable
to the order of the Lender;

 

		(ii)	this Agreement, duly executed by the Borrower;

 

		(iii)	confirmation from the Borrower regarding the adoption of resolutions of the board of directors
or others performing similar functions with respect to such corporation or other organization, as applicable, of the Borrower approving
and authorizing the execution, delivery, and performance by the Borrower of each Loan Document, the notices and other documents
to be delivered by the Borrower pursuant to each Loan Document to which it is a party, and the transactions contemplated thereunder;
and

 

		(iv)	such other documents and instruments with respect to the transactions contemplated hereby as the
Lender may reasonably request.

 

(b)           Attorney Costs. The Borrower shall have paid the reasonable fees, charges and disbursements of counsel to Lender
to the extent invoiced prior to or on the date hereof (which fees, charges and disbursements may be deducted from the funding of
the Advance pursuant to Section 2.1 at the discretion of the Lender).

 

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(c)           No Material Adverse Effect. Since August 10, 2022, (a) there has been no Material Adverse Effect, and (b) there
has been no circumstance, event or occurrence, and no fact is known to the Borrower that would reasonably be expected to result
in a Material Adverse Effect.

 

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

 

In order to induce
the Lender to enter into this Agreement, the Borrower represents and warrants to the Lender as of the date hereof that:

 

SECTION 5.1. Existence.
The Borrower is duly organized, validly existing, and in good standing under the laws of the jurisdiction in which it is incorporated
or organized and is duly qualified or licensed to do business in all jurisdictions where the Property owned or the business transacted
by it makes such qualification necessary and where the failure to be so qualified would have a Material Adverse Effect.

 

SECTION 5.2. Power
and Authorization. The Borrower is duly authorized and empowered to execute, deliver, and perform its obligations under each
Loan Document and all corporate or other action on the part of the Borrower requisite for the due execution, delivery, and performance
of each Loan Document has been duly and effectively taken.

 

SECTION 5.3. Binding
Obligations. This Agreement and the other Loan Documents to which the Borrower is a party are the legal, valid and binding
obligations of the Borrower and is enforceable against the Borrower in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights
generally, or by principles governing the availability of equitable remedies.

 

SECTION 5.4. No
Conflict. The execution, delivery and performance by the Borrower of this Agreement and the other Loan Documents to which the
Borrower is or is to become a party and the transactions contemplated hereby and thereby: (i) do not require the approval or consent
of, or filing with, any governmental agency or authority other than those already obtained, (ii) do
not contravene any Legal Requirement applicable to or binding upon the Borrower, and (iii) are not in contravention of the terms
of the articles or certificate of incorporation, bylaws, or other organizational documents of the Borrower or of any contractual
obligations.

 

SECTION 5.5. Taxes;
Governmental Charges. The Borrower has timely filed or caused to be timely filed all federal, state, province, and foreign
income tax returns which are required to be filed, and has paid or caused to be paid all taxes as shown on such returns or on any
assessment received by it to the extent that such taxes have become due, except for such taxes and assessments as are being contested
in good faith in appropriate proceedings and reserved for in accordance with GAAP.

 

SECTION 5.6. Licenses;
Compliance with Law. The Borrower has obtained all governmental, administrative and other licenses, permits and other authorizations
required by law to be obtained or made in order to permit the operation of, and as are necessary to the carrying on of, its business.
The business and operations of the Borrower, as conducted, are in compliance in all material respects with all Legal Requirements.

 

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SECTION 5.7. Absence
of Financing Statements. The Borrower has good and marketable title to all Property owned by it. Except as provided herein,
there is no financing statement, security agreement, chattel mortgage, real estate mortgage or other document filed or recorded
with any filing records, registry or other public office, that purports to cover, affect or give notice of any present or possible
future Lien on, or security interest in, the Property of the Borrower, or any rights relating thereto.

 

SECTION 5.8. Litigation.
Except s disclosed in its reports filed with the Securities and Exchange Commission, there are no actions, suits, proceedings or
investigations of any kind pending or threatened against the Borrower before any court, tribunal or administrative agency or board,
that, if adversely determined, might, either in any case or in the aggregate, reasonably be expected to materially adversely affect
the properties, assets, financial condition or business of the Borrower, or materially impair the right of the Borrower to carry
on business substantially as now conducted by it, or result in any substantial liability not adequately covered by insurance, or
for which adequate reserves are not maintained on the consolidated balance sheet of the Borrower, or which question the validity
of this Agreement or any of the other Loan Documents, or might impair or prevent any action taken or to be taken pursuant hereto
or thereto. Notwithstanding the foregoing, this Section 5.8 shall not restrict Borrower’s right to contest any
such litigation, and to bond over any matter of record resulting from such litigation as a cure to any default or event of default
caused pursuant to this Section 5.8.

 

SECTION 5.9. Solvency.
The Borrower is Solvent (which, for this purpose, shall be determined without giving effect to any “balloon” payment
or amount owed under the Loan Documents not yet due and payable) and will continue to be Solvent after the creation of the Obligations.

 

SECTION 5.10. Material
Contracts. The Borrower is not in breach or in default in any material respect of or under any material contracts to which
it is a party and has not received any notice of the intention of any other party thereto to terminate any material contract.

 

SECTION 5.11. No
Material Adverse Effect. Since August 10, 2022, except as publicly disclosed by Borrower, (a) there has been no Material
Adverse Effect, and (b) there has been no circumstance, event or occurrence, and no fact is known to the Borrower that would reasonably
be expected to result in a Material Adverse Effect.

 

SECTION 5.12. No
Default or Event of Default. No event has occurred or is continuing which constitutes a Default or Event of Default hereunder.

 

SECTION 5.13. Financial
Statements. The financial statements of the Borrower heretofore furnished to the Lender, are true and complete, have been prepared
in accordance with GAAP consistent with the prior fiscal periods of the Borrower, omit no material contingent liabilities of any
kind that are not disclosed or otherwise reflected therein, and fairly present the financial condition of the Borrower, as of the
date thereof and the results of its operations for the period then ended. Since the date thereof, there has been no material adverse
change in the financial condition of the Borrower, or the properties or businesses of the Borrower which has not been disclosed
in writing by the Borrower to the Lender or in the Borrower’s public filings with the Securities and Exchange Commission.

 

    10

     

    

 

SECTION 5.14. Trademarks,
Patents, Licenses. The Borrower possesses all trademarks, trademark rights, patents, patent rights, licenses, permits, trade
names, trade name rights, copyrights and approvals which are required to conduct its business as now conducted without conflicting
with the rights of others.

 

SECTION 5.15. Disclosure.
To Borrower’s knowledge, neither this Agreement, nor any of the other Loan Documents, nor any certificate or other document
furnished to the Lender by or on behalf of the Borrower pursuant to any Loan Document contains, or will contain, as of its date,
any untrue statement of a material fact or omits to state or will omit to state, as of its date, a material fact necessary in order
to make the statements contained herein and therein not misleading. There are no facts known to the Borrower which, individually
or in the aggregate, materially adversely affect or involve any substantial possibility of materially adversely affecting the condition,
business or affairs of the Borrower or its properties and assets considered as an entirety which have not been disclosed herein.

 

ARTICLE VI.

AFFIRMATIVE COVENANTS OF THE BORROWER

 

So long as any Obligation
shall remain unpaid, the Borrower covenants and agrees that, unless the Lender shall otherwise consent in writing:

 

SECTION 6.1. Compliance
with Laws, Etc. The Borrower will comply, in all material respects, with all applicable Legal Requirements.

 

SECTION 6.2. Reporting
and Notice Requirements.

 

(a)           Borrower Reports. The Borrower will furnish to the Lender:

 

		(i)	as soon as available and in any event within forty-five (45) days after the end of each fiscal
quarter of the Borrower, balance sheets (which are to be consolidated, if applicable) of the Borrower as of the end of such fiscal
quarter and statements of income (or loss), stockholder’s equity (or deficiency) and cash flow (which are to be consolidated,
if applicable) of the Borrower for the period commencing at the end of the previous fiscal year of the Borrower and ending with
the end of such fiscal quarter, all in reasonable detail and certified by a Responsible Officer as presenting fairly the financial
position (on a consolidated basis, if applicable) of the Borrower and its Subsidiaries, as of the date indicated and the results
of its operations and changes in financial position (on a consolidated basis, if applicable) for the period indicated in conformity
with GAAP, consistently applied, subject to changes resulting from year-end adjustments; provided, however, that the timely filing
by Borrower with the Securities and exchange Commission via EDGAR of its quarterly reports on Form 10-Q and its annual report on
Form 10-K shall be deemed to fulfill the requirements of this Section;

 

    11

     

    

 

		(ii)	upon request by Lender, within ten (10) Business Days of filing, copies of the tax returns of the
Borrower; and

 

		(iii)	such other reports and as the Lender may from time to time reasonably request.

 

(b)           Notice of Default. Promptly after any officer of the Borrower knows or has reason to know that any Default or Event
of Default has occurred, a written statement of such officer of the Borrower setting forth the details of such Default or Event
of Default and the action which the Borrower has taken or proposes to take with respect thereto.

 

(c)           No Material Adverse Effect. If reasonably requested by the Lender, within ten (10) Business Days of the Borrower’s
receipt of such request, a certificate from an officer of the Borrower certifying there has been no material adverse change in
the business, assets, liabilities, operations, results of operations, condition (financial or otherwise) or prospects of the Borrower.

 

SECTION 6.3. Use
of Proceeds. The proceeds of the Term Loan shall be used solely for the following purposes: (a) the payment of fees, costs
and expenses related to the transactions contemplated hereby; and (b) general corporate purposes.

 

SECTION 6.4. Taxes
and Liens. The Borrower will pay and discharge, or will cause to be paid and discharged, promptly all taxes, assessments, and
governmental charges or levies imposed upon the Borrower upon the income of any Property of the Borrower, as well as all claims
of any kind (including, without limitation, claims for labor, materials, supplies, and rent) which, if unpaid, might become a Lien
upon any Property of the Borrower, except such taxes, assessments, governmental charges or levies contested in good faith by the
Borrower for which adequate reserves have been maintained in accordance with GAAP.

 

SECTION 6.5. Maintenance
of Property. The Borrower will at all times maintain, preserve, protect, and keep, or cause to be maintained, preserved, protected,
and kept, the Property of the Borrower in good repair, working order, and condition (ordinary wear and tear excepted) and consistent
with past practice.

 

SECTION 6.6. Right
of Inspection. From time to time upon reasonable notice to the Borrower, the Borrower or will permit any employee of, or agent
designated by, the Lender to visit and inspect any of the Properties of the Borrower, examine the corporate books or financial
records of the Borrower, take copies and extracts therefrom, and discuss the affairs, finances, and accounts of the Borrower with
the applicable entity’s officers or certified public accountants, all as often as the Lender may reasonably desire, provided
that such visits and inspections shall be made only during business hours and so as not to interfere unreasonably with the business
and operations of the Borrower. Notwithstanding the foregoing, unless there is an Event of Default that has not been cured within
applicable cure periods, the Lender shall not request any such inspection of the books or financial records of the Borrower more
than once per any six (6) month period.

 

    12

     

    

 

SECTION 6.7. Insurance.
The Borrower shall maintain commercial risk insurance (the “Policies”) covering the customary risks for the
business that the Borrower is engaged in and all Property that is capable of being insured. The Borrower will maintain insurance
of similar types and coverages as maintained on the date hereof and consistent with past practice, with financially sound and reputable
insurance companies and associations acceptable to the Lender based on the Lender’s reasonable judgment (or as to workers’
compensation or similar insurance, in an insurance fund or by self-insurance authorized by the jurisdiction in which its operations
are carried on).

 

SECTION 6.8. Notice
of Litigation. The Borrower will promptly notify Lender in writing of any litigation, legal proceeding or dispute, other than
disputes in the ordinary course of business or, whether or not in the ordinary course of business, involving amounts in excess
of $1,000,000, and any investigation of Borrower by any Governmental Authority, adversely affecting the Borrower, whether or not
fully covered by insurance, and regardless of the subject matter thereof.

 

SECTION 6.9. Existence.
The Borrower will preserve and maintain its legal existence and all of its material rights, privileges, licenses, contracts and
property and assets used or useful to its business.

 

SECTION 6.10. Further
Assurances. The Borrower will cooperate with the Lender and execute such further instruments and documents as the Lender shall
reasonably request to carry out to its satisfaction the transactions contemplated by this Agreement and the other Loan Documents.

 

ARTICLE VII.

NEGATIVE COVENANTS

 

So long as any Obligation
shall remain unpaid, the Borrower covenants and agrees that, without the written consent of the Lender:

 

SECTION 7.1. Impairment
of Rights. The Borrower will not undertake any action or engage in any transaction or activity to impair the Lender’s
rights hereunder.

 

SECTION 7.2. Restrictions
on Debt. The Borrower will not create, incur, assume, guarantee, endorse or be or remain liable, contingently or otherwise,
with respect to any Debt other than:

 

(a)               
Debt to the Lender arising under any of the Loan Documents;

 

(b)              
current liabilities of the Borrower or incurred in the ordinary course of business including as incurred through (i) the
borrowing of money, or (ii) the obtaining of credit and for credit on an open account basis customarily extended and in fact
extended in connection with normal purchases of goods and services;

 

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(c)               
Debt in respect of taxes, assessments, governmental charges or levies and claims for labor, materials and supplies to the
extent that payment therefor shall not at the time be required to be made in accordance with the provisions of Section 6.3;

 

(d)              
Debt in respect of judgments or awards that have been in force for less than the applicable period for taking an appeal
so long as execution is not levied thereunder or in respect of which the Borrower shall at the time in good faith be prosecuting
an appeal or proceedings for review and in respect of which a stay of execution shall have been obtained pending such appeal or
review; and

 

(e)               
Customary trade credit incurred in the ordinary course of business, which Debt would be expressly subordinate to the Note,
unless otherwise approved by the Lender.

 

SECTION 7.3. Restrictions
on Liens. The Borrower will not (i) create or incur or suffer to be created or incurred or to exist any Lien upon any
of their Property, or upon the income or profits therefrom, which is not removed of record, bonded off, or dismissed within fifteen
(15) Business Days after the date of notice of such filing; (ii) transfer any of such Property or the income or profits therefrom
for the purpose of subjecting the same to the payment of Debt or performance of any other obligation in priority to payment of
its general creditors; (iii) acquire, or agree or have an option to acquire, any property or assets upon conditional sale
or other title retention or purchase money security agreement, device or arrangement; (iv) suffer to exist for a period of
more than thirty (30) days after the same shall have been incurred any Debt or claim or demand against it that if unpaid might
by law or upon bankruptcy or insolvency, or otherwise, be given any priority whatsoever over its general creditors; or (v) sell,
assign, pledge or otherwise transfer any accounts, contract rights, general intangibles, chattel paper or instruments, with or
without recourse; provided that the Borrower may create or incur or suffer to be created or incurred or to exist (the “Permitted
Liens”):

 

(a)               
liens to secure taxes, assessments and other government charges in respect of obligations not overdue or liens on properties
to secure claims for labor, material or supplies in respect of obligations not overdue;

 

(b)              
deposits or pledges made in connection with, or to secure payment of, workmen’s compensation, unemployment insurance,
old age pensions or other social security obligations;

 

(c)               
liens on properties in respect of judgments or awards, the Debt with respect to which is permitted by Section 7.2(d);
and

 

(d)              
encumbrances on real estate consisting of easements, rights of way, zoning restrictions, restrictions on the use of real
property and defects and irregularities in the title thereto, landlord’s or lessor’s liens under leases to which the
Borrower is a party, and other minor liens or encumbrances none of which in the opinion of the Borrower interferes materially with
the use of the Property affected in the ordinary conduct of the business of the Borrower, which defects do not individually or
in the aggregate have a materially adverse effect on the business of the Borrower.

 

    14

     

    

 

SECTION 7.4. Change
of Control. The Borrower will not enter into any transaction resulting in a Change of Control.

 

SECTION 7.5. Dispositions.
The Borrower shall not without the written consent of Lender, voluntarily sell, assign, lease,
transfer, trade, withdraw, redeem, substitute or otherwise dispose of any of the material assets of the Borrower or enter into
any agreement to do so. The Borrower shall not execute any other document, such as a power of attorney, or similar instrument,
in favor of any person to deal with the Borrower’s Property.

 

SECTION 7.6. Changes
in Organizational Documents. The Borrower will not amend in any respect its certificate of incorporation (including any provisions
or resolutions relating to capital stock), by-laws or other organizational documents in a manner materially adverse to the Lender,
without the prior written consent of the Lender; provided that such consent will not be unreasonably withheld.

 

ARTICLE VIII.

EVENTS OF DEFAULT

 

SECTION 8.1. Events
of Default. If any of the following events (“Events of Default”) shall occur and, after written notice thereof
by the Lender to the Borrower, shall not have been cured within five (5) calendar days (in the case of monetary defaults) or ten
(10) calendar days (in the case of all other defaults capable of being cured) unless a shorter period of time is specified below:

 

(a)               
the Borrower shall fail to pay principal of or interest on the Note or other amounts due under the Note or this Agreement
or any other Loan Document, when the same becomes due and payable under the terms thereunder; or

 

(b)              
the Borrower shall enter into any agreement or arrangement to sell, dispose, assign, exchange, gift, lease, pledge, hypothecate
or otherwise transfer, directly or indirectly, in one transaction or a series of transactions, all or substantially all of the
assets of the Borrower in violation of the terms herein or without prior written consent of Lender; or

 

(c)               
any representation or warranty made by the Borrower under or in connection with any Loan Document to which it is a party
shall prove to have been incorrect in any material respect when made or deemed made; or

 

(d)              
the Borrower shall fail to perform or observe any term, covenant or agreement contained herein or in any other Loan Document
to which it is a party within ten (10) days after written notice of the Lender to cure same; or

 

    15

     

    

 

(e)         the Borrower shall fail to pay any principal of, or premium or interest on, any Debt when the same becomes due and payable (whether
by scheduled maturity, required prepayment, acceleration, demand or otherwise) unless being contested in good faith, and such
failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt;
or any other event constituting a default (however defined) shall occur or condition shall exist under any agreement or instrument
relating to any such Debt and shall continue after the applicable grace period, if any, specified in such agreement or instrument,
which would give rise to a right to accelerate such Debt; or

 

(f)          the Borrower shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts
generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against
the Borrower under the Bankruptcy Law or any other Debtor Law seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation,
winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any Debtor Laws,
or seeking the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for
it or for any substantial part of its Property and, in the case of any such proceeding instituted against it (but not instituted
by it), either such proceeding shall remain undismissed or unstayed for a period of forty-five (45) days, or any of the actions
sought in such proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a receiver,
trustee, custodian or other similar official for, it or for any substantial part of its Property) shall occur; or the Borrower
shall take any corporate action to authorize any of the actions set forth above in this subsection (f);

 

(g)         Any Loan Document or any interest of the Lender thereunder shall for any reason be terminated, invalidated, void or unenforceable
or the Borrower, shall fail to perform any obligation thereunder;

 

(h)         a Change of Control of the Borrower; or

 

(i)          the Borrower shall attempt to liquidate or dissolve itself or any of its Subsidiaries, without the prior written consent of the
Lender;

 

then,
and in any such event, Lender (after providing the notice and opportunity to cure set forth in the first clause of this Section)
may, by notice to the Borrower, declare the principal amount of the Note, all interest thereon and all other Obligations or amounts
payable under this Agreement or any other Loan Document to be forthwith due and payable, whereupon the Note, all such interest
and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of
any kind, all of which are hereby expressly waived by the Borrower; provided however, that in the case of any Default pursuant
to Subsection (f), (g) or (h) of this Section 8.1, all such interest and all such amounts shall automatically become and
be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by
the Borrower. A late fee equal to two percent (2%) will be applied to any and all payments which are received later than one (1)
Business Day after the expiration of the applicable cure period set forth in the first clause of this Section.

 

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ARTICLE
IX.

MISCELLANEOUS

 

SECTION
9.1. Survival of Representations and Warranties. All representations and warranties in each Loan Document shall survive
the delivery of the Note and the making of the Term Loan, and shall continue after the repayment of the Note and the Maturity
Date until all Obligations are indefeasibly paid in full, and any investigation at any time made by or on behalf of the Lender
shall not diminish the Lender’s right to rely thereon.

 

SECTION
9.2. Amendments, Etc. No amendment or waiver of any provision of this Agreement or the Note, nor consent to any departure
by the Borrower therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties, and
then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given.

 

SECTION
9.3. Notices, Etc. All notices and other communications provided for hereunder shall be in writing and shall be effective
when actually delivered, addressed as follows: if to the Borrower, at its address at 3957 Point Eden Way, Hayward, CA 94545, Attention:
Chief Financial Officer, with a copy to BakerHostetler, 45 Rockefeller Plaza, New York, New York 10111, Attention: Adam Finerman,
Esq.; ; if to the Lender, at his address at 611 S. Fort Harrison Ave., Suite 306, Clearwater FL 33756,or as to the Borrower or
the Lender at such other address as shall be designated by such party in a written notice to the other parties.

 

SECTION
9.4. No Waiver; Remedies. No failure on the part of either party to exercise, and no delay in exercising, any right under
any Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other
or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive
of any remedies provided by law.

 

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SECTION
9.5. Indemnification. The Borrower s shall indemnify and hold the Lender and his agents, employees, advisors and counsel
and their respective Affiliates (each such person being an “Indemnitee”), harmless from and against any and
all losses, claims, damages, liabilities, costs or expenses (including attorneys’ fees and expenses) imposed on, reasonably
incurred by or asserted against any of them by a party that is not an Indemnitee in connection with any litigation, investigation,
claim or proceeding commenced or threatened related to the negotiation, preparation, execution, delivery, enforcement, performance
or administration of this Agreement, any other Loan Document, or any undertaking or proceeding related to any of the transactions
contemplated hereby or any act, omission, event or transaction related or attendant thereto (including, without limitation, brokerage
commissions alleged to be due on account of the placing of the investment), including amounts paid in settlement (to the extent
agreed to in writing by Borrower), court costs, and the reasonable fees and expenses of counsel, except that the Borrower shall
not have any obligation under this Section 9.5 to indemnify an Indemnitee with respect to a matter covered hereby resulting
from the gross negligence or willful misconduct of such Indemnitee as determined pursuant to a final, non-appealable order of
a court of competent jurisdiction (but without limiting the obligations of the Borrower as to any other Indemnitee). To the extent
that the undertaking to indemnify, pay and hold harmless set forth in this Section may be unenforceable because it violates any
law or public policy, the Borrower shall pay the maximum portion which it is permitted to pay under applicable law to the Lender
in satisfaction of indemnified matters under this Section. To the extent permitted by applicable law, the Borrower shall not assert,
and the Borrower hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential
or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement,
any of the other Loan Document or any undertaking or transaction contemplated hereby. All amounts due under this Section shall
be payable upon demand. The foregoing indemnity shall survive the payment of the Obligations and the termination or non-renewal
of this Agreement.

 

SECTION
9.6. Right of Set-off. Upon the occurrence and during the continuance of any Event of Default, the Lender is hereby authorized
at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held and other Debt at any time owing by the Lender to or for the
credit or the account of the Borrower against any and all of the obligations of the Borrower now or hereafter existing under any
Loan Document, whether or not the Lender shall have made any demand under the Note and although such obligations may be unmatured.
Lender agrees promptly to notify the Borrower after any such set-off and application made by such Lender, provided that the failure
to give such notice shall not affect the validity of such set-off and application. The rights of the Lender under this Section
are in addition to other rights and remedies (including, without limitation, other rights of set-off) which such the Lender may
have.

 

SECTION
9.7. Binding Effect. This Agreement shall become effective when it shall have been executed by the Borrower and the Lender
and thereafter shall be binding upon and inure to the benefit of the Borrower, the Lender and their respective successors and
assigns, except that neither the Borrower nor the Lender (except as provided in Section 9.8) shall have the right to assign
its rights hereunder or any interest herein without the prior written consent of the other.

 

SECTION
9.8. Assignments and Participations. The Lender may assign all or a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of the Note held by it) to any Affiliate of Lender.

 

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SECTION
9.9. Limitation on Agreements. All agreements between the Borrower or the Lender, whether now existing or hereafter arising
and whether written or oral, are hereby expressly limited so that in no contingency or event whatsoever, whether by reason of
demand being made in respect of an amount due under any Loan Document or otherwise, shall the amount paid, or agreed to be paid,
to the Lender for the use, forbearance, or detention of the money to be loaned under the Note or any other Loan Document or otherwise
or for the payment or performance of any covenant or obligation contained herein or in any other Loan Document exceed the Highest
Lawful Rate. If, as a result of any circumstance whatsoever, fulfillment of or compliance with any provision hereof or of any
of such documents at the time performance of such provision shall be due or at any other time shall involve exceeding the amount
permitted to be contracted for, taken, reserved, charged or received by the Lender under applicable usury or similar law, then,
ipso facto, the obligation to be fulfilled or complied with shall be reduced (firstly by reducing the stated interest rate and
thereafter, if and to the extent required, by reducing any other amount comprising interest) to the limit prescribed by such applicable
usury or similar law, and if, from any such circumstance, the Lender shall ever receive interest or anything which might be deemed
interest under applicable law which would exceed the Highest Lawful Rate, such amount which would be excessive interest shall
be applied to the reduction of the principal amount owing on account of the Note or the amounts owing on other obligations of
the Borrower to the Lender under any Loan Document and not to the payment of interest, or if such excessive interest exceeds the
unpaid principal balance of the Note and the amounts owing on other obligations of the Borrower to the Lender under any Loan Document,
as the case may be, such excess shall be refunded to the Borrower. All sums paid or agreed to be paid to the Lender for the use,
forbearance, or detention of the indebtedness of the Borrower to the Lender shall, to the extent permitted by applicable law,
be amortized, prorated, allocated, and spread throughout the full term of such indebtedness until payment in full of the principal
(including the period of any renewal or extension thereof) so that the interest on account of such indebtedness shall not exceed
the Highest Lawful Rate. Notwithstanding anything to the contrary contained in any Loan Document, it is understood and agreed
that if at any time the rate of interest which accrues on the outstanding principal balance of the Note shall exceed the Highest
Lawful Rate, the rate of interest which accrues on the outstanding principal balance of the Note shall be limited to the Highest
Lawful Rate, but any subsequent reductions in the rate of interest which accrues on the outstanding principal balance of the Note
shall not reduce the rate of interest which accrues on the outstanding principal balance of such Note below the Highest Lawful
Rate until the total amount of interest accrued on the outstanding principal balance of the Note, taken in the aggregate, equals
the amount of interest which would have accrued if such interest rate had at all times been in effect and not been reduced. In
the event that any rate of interest under the Note or any Loan Document is reduced due to the effect of this Section 9.9
and there is a subsequent increase in the Highest Lawful Rate prior to the full payment of the Obligations, such interest rate
shall, automatically without any action of the Borrower or Lender, be increased to the then applicable Highest Lawful Rate. The
terms and provisions of this Section 9.9 shall control and supersede every other provision of all Loan Documents.

 

SECTION
9.10. Severability. In case any one or more of the provisions contained in any Loan Document to which the Borrower is a
party or in any instrument contemplated thereby, or any application thereof, shall be invalid, illegal, or unenforceable in any
respect, the validity, legality, and enforceability of the remaining provisions contained therein, and any other application thereof,
shall not in any way be affected or impaired thereby.

 

SECTION
9.11. Governing Law. This Agreement and the Note 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 without regards to the conflicts
of laws principles thereof other than mandatory provisions of law.

 

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SECTION
9.12. SUBMISSION TO JURISDICTION; WAIVERS. THE BORROWER AND THE LENDER IRREVOCABLY AND UNCONDITIONALLY:

 

(a)         SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR
FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE FEDERAL AND
STATE COURTS LOCATED IN THE STATE OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF;

 

(b)         WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT
SUCH PROCEEDING WAS BROUGHT IN AN INCONVENIENT FORUM AND AGREES NOT TO PLEAD OR CLAIM THE SAME; AND

 

(c)         AGREES THAT SERVICE OF PROCESS IN ANY SUCH LEGAL ACTION OR PROCEEDING MAY BE EFFECTED BY MAILING OF A COPY THEREOF (BY REGISTERED
OR CERTIFIED MAIL OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL POSTAGE PREPAID) TO THE ADDRESS SET FORTH IN SECTION 9.3 HEREOF
OR AT SUCH OTHER ADDRESS OF WHICH THE OTHER PARTIES HERETO SHALL HAVE BEEN NOTIFIED IN WRITING PURSUANT TO SECTION 9.3.

 

(d)         THE BORROWER AND THE LENDER EACH WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY LEGAL ACTION ARISING UNDER THIS AGREEMENT.

 

SECTION
9.13. Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an
executed counterpart of a signature page of this Agreement or any other Loan Document (other than the Note) by fax transmission
or e-mail transmission (e.g. “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart
of this Agreement or such other Loan Document.

 

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IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized,
as of the date first above written.

 

	 	BORROWER:

                                                                       

        PULSE
BIOSCIENCES, INC. 

	 	 
	 	By:	/s/
    Kevin Danahy
	 	Name:	Kevin
    Danahy
	 	Title:	President
    and Chief Executive Officer
	 	 	 	 

Signature
Page to Loan Agreement

 

     

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized,
as of the date first above written.

 

	 	LENDER:
	 	/s/ Robert Duggan
	 	 ROBERT
    DUGGAN

 

Signature
Page to Loan Agreement

 

     

     

    

SCHEDULE
A

 

Wire
Instructions

 

     

     

    

EXHIBIT
A

 

NOTE

 

	$65,000,000	September ___,
2022

 

FOR
VALUE RECEIVED, the undersigned (the “Borrower”), HEREBY PROMISES TO PAY to the order of ROBERT DUGGAN (the
“Lender”), on or before the Maturity Date (as such term is defined in the Loan Agreement), the principal sum
of Sixty-Five Million and No/100 Dollars ($65,000,000.00) in accordance with the terms and provisions of that certain Loan Agreement
dated as of the date hereof by and between the Borrower and the Lender (as same may be amended, modified, increased, supplemented
and/or restated from time to time, the “Loan Agreement”; capitalized terms used herein and not otherwise defined
herein shall have the meanings ascribed to such terms in the Loan Agreement).

 

The
outstanding principal balance of this Note, together with all accrued and unpaid interest thereon, shall be due and payable on
the Maturity Date. The Borrower promises to pay interest on the unpaid principal balance of this Note from the Issue Date until
the principal balance thereof is paid in full. Interest shall accrue on the outstanding principal balance of this Note from and
including the Issue Date to but not including the Maturity Date at the rate or rates, and shall be due and payable on the dates
and paid in accordance with the terms and conditions, set forth in the Loan Agreement.

 

Payments
of principal, and all amounts due with respect to costs and expenses pursuant to the Loan Agreement, shall be made in lawful money
of the United States of America in immediately available funds, without deduction, set-off or counterclaim to the Lender to the
account maintained by the Lender not later than 11:59 a.m. (New York time) on the dates on which such payments shall become due
pursuant to the terms and provisions set forth in the Loan Agreement. Payments of interest shall be payable in accordance with
the provisions of the Loan Agreement.

 

If
any payment of principal or interest on this Note shall become due on a day that is not a Business Day, such payment shall be
made on the next succeeding Business Day and such extension of time shall in such case be included in computing interest in connection
with such payment.

 

This
Note is the Note provided for in, and is entitled to the benefits of, the Loan Agreement, which Loan Agreement, among other things,
contains provisions for acceleration of the maturity hereof upon the happening of certain stated events, for prepayments on account
of principal hereof prior to the maturity hereof upon the terms and conditions and with the effect therein specified, and provisions
to the effect that no provision of the Loan Agreement or this Note shall require the payment or permit the collection of interest
in excess of the Highest Lawful Rate.

 

The
Borrower and any and all endorsers, guarantors and sureties severally waive grace, demand, presentment for payment, notice of
dishonor or default, protest, notice of protest, notice of intent to accelerate, notice of acceleration and diligence in collecting
and bringing of suit against any party hereto, and agree to all renewals, extensions or partial payments hereon and to any release
or substitution of security hereof, in whole or in part, with or without notice, before or after maturity.

 

     

     

    

 

This
Note shall be binding upon the Borrower and its successors and assigns and the terms hereof shall inure to the benefit of the
Lender and his successors and assigns including subsequent holders hereof (collectively, “Assignees”), except
that the Borrower may not assign or transfer any of its rights or obligations under this Note without the prior written consent
of the Lender (which consent shall be in the sole and absolute discretion of the Lender). The term “Lender” as used
in this Note shall be deemed to include the Lender and his Assignees. The Lender shall, upon notice to the Borrower, have the
unrestricted right at any time or from time to time, and without the Borrower’s consent, to assign all or any portion of
his rights and obligations hereunder to any other person, which shall thereupon become vested with all the powers and rights above
given to the Lender in respect thereof; provided, however, that any such assignment or transfer of this Note shall be made
in accordance with all applicable securities laws. The Borrower agrees that it shall execute, or cause to be executed, such documents,
including without limitation, amendments to this Note and to any other documents, instruments and agreements executed in connection
herewith as the Lender shall reasonably deem necessary to affect the foregoing assignment. In addition, at the request of the
Lender and any such Assignee, the Borrower shall issue one or more new promissory notes, as applicable, to any such Assignee (provided
that such issuance shall be at no additional cost or liability to Borrower then existing prior to such assignment to Assignee).
Upon the execution and delivery of appropriate assignment documentation, amendments and any other documentation reasonably required
by the Lender in connection with such assignment, and the payment by the Assignee of the purchase price agreed to by the Lender
and such Assignee, such Assignee shall be a holder of this Note shall have all of the rights and obligations of the Lender hereunder
(and any other guaranties, documents, instruments and agreements executed in connection herewith) to the extent that such rights
and obligations have been assigned by the Lender pursuant to the assignment documentation between the Lender and such Assignee,
and the Lender shall be released from any obligations he may have hereunder arising after such assignment and thereunder to a
corresponding extent.

 

THIS
NOTE 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 WHOLLY WITHIN SUCH STATE.

 

     

     

    

 

IN
WITNESS WHEREOF, the Borrower has caused this Note to be duly executed and delivered effective as of the date first above written.

 

	 	PULSE
BIOSCIENCES, INC.
	 	 
	 	By:	 
	 	Name:	Kevin
    Danahy
	 	Title:	President
    and Chief Executive Officer
	 	 	 	 

Signature
Page to NotePulse Biosciences, Inc. 8-K

Exhibit 10.2

 

PULSE BIOSCIENCES, INC.

AMENDMENT TO EMPLOYMENT AGREEMENT

This amendment (the “Amendment”)
is entered into effective as September 20, 2022 by and between Darrin Uecker (“Executive”) and Pulse
Biosciences, Inc. (the “Company,” and together with Executive, the “Parties”).

WHEREAS, the Company
and Executive entered into an employment agreement dated September 8, 2015 (the “Employment Agreement”);

WHEREAS, the Employment
Agreement was amended once, on October 5, 2016, via a written Amendment to Employment Agreement;

WHEREAS, the Parties desire
to amend the Employment Agreement, as previously amended, with respect to Executive’s title and role in the Company.

NOW, THEREFORE,
in considerations of the promises, mutual covenants, and above recitals, including the continuation of Executive’s employment
with Company pursuant to the Employment Agreement as amended, Executive and the Company hereby agree as follows: 

		1.	The words “President and Chief Executive Officer” in Section 1(a) of the Employment
Agreement, titled “Position and Duties,” are hereby DELETED and replaced with “Chief Technology Officer.”

 

		2.	The amount of “$300,000” in the first line of Section 3(a) of the Employment Agreement,
titled “Base Salary,” is hereby DELETED and replaced with “$400,000.”

 

		3.	The amount of “25%” in the second line of Section 3(e) of the Employment Agreement,
titled “Annual Bonus,” is hereby DELETED and replaced with “100%.”

 

		4.	Section 7(a)(ii) of the Employment Agreement is hereby amended
and restated in its entirety as follows:

 

“(ii)Accelerated
Vesting. 

(x)
Not in Connection with a Change in Control. If Executive is terminated pursuant Section 7(a) not in connection with a Change
of Control, the unvested portion of Executive’s then Board approved and issued and outstanding
options for Company Common Stock that would normally vest over the following twelve (12) months from the date of Executive’s
termination will immediately vest prior to Executive’s termination and become exercisable. The options will remain exercisable,
to the extent applicable, following the date of termination for the period prescribed in the Plan under which they are awarded.

(y) In connection with a Change in Control. If Executive is terminated pursuant Section 7(a) within the twelve (12) month
period following a Change of Control, then the unvested portion of Executive’s then outstanding equity awards will immediately
vest prior to Executive’s termination and become exercisable. The equity awards will remain
exercisable, to the extent applicable, following the date of termination for the period prescribed in the Plan under which they are awarded.”

    Page 1 of 3

     

    

 

		5.	The parties agree that the changes being made in this Amendment shall not constitute Good Reason under
the Employment Agreement.

 

		6.	Section 10(e) of the Employment Agreement, titled “Good Reason,” is hereby amended and restated
in its entirety as follows:

 

(e) Good Reason. For the purposes of
this Agreement, “Good Reason” means Executive’s resignation within thirty (30) days following the expiration of any
Company cure period (discussed below) following the occurrence of one or more of the following, without Executive’s express written
consent: (i) the assignment to Executive of any duties beyond the generally recognized scope of employment of a Chief Technology Officer
or the reduction of Executive’s duties or the removal of Executive from his position and responsibilities as Chief Technology Officer,
either of which must result in a material diminution of Executive’s authority, duties, or responsibilities with the Company in effect
immediately prior to such assignment; provided, however, if the Executive is provided with an alternative executive type position within
the Company or its subsidiaries at the same or better compensation as proved herein or that a reduction in duties, position or responsibilities
solely by virtue of the Company being acquired and made part of a larger entity will not constitute “Good Reason”; (ii) a
reduction in Executive’s Base Salary (except where there is a reduction applicable to the management team generally of not more
than 10% of Executive’s Base Salary); or (iii) a material change in the geographic location of Executive’s primary work facility
or location; provided, that a relocation of less than fifty (50) miles from Executive’s then present work location will not be considered
a material change in geographic location. Executive will not resign for Good Reason without first providing the Company with written notice
of the acts or omissions constituting the grounds for “Good Reason” within ninety (90) days of the initial existence of the
grounds for “Good Reason” and a reasonable cure period of not less than thirty (30) days following the date of such notice
and such grounds for “Good Reason” have not been cured during such cure period.

 

		7.	The words “Chief Executive Officer or” in Section 16 of the Employment Agreement, titled “Business
Opportunities,” is hereby DELETED.

 

		8.	Section 19(d) of the Employment Agreement, titled “Entire Agreement,” is hereby amended and
restated in its entirety as follows:

 

(d) Entire Agreement. This Agreement,
together with the Equity Plan, Option Agreement, the Confidential Information Agreement (and its exhibits), lock up agreement, any employment
policy statements and employment manuals that the Company or its Board adopts from time to time, and any amendments to this Agreement,
represents the entire agreement and understanding between the parties with respect to Executive’s employment by the Company and
supersedes all prior or contemporaneous agreements whether written or oral. With respect to stock options granted on or after the date
of this Agreement, the acceleration of vesting provisions provided herein will apply to such stock options. This Agreement may be modified
only by agreement of the parties by a written instrument executed by the parties that is designated as an amendment to this Agreement.

    Page 2 of 3

     

    

 

		9.	Full Force and Effect. To the extent not expressly amended hereby, the Employment Agreement as
previously amended shall remain in full force and effect.

 

		10.	Counterparts. This Amendment may be executed in counterparts, all of which together shall constitute
one instrument, and each of which may be executed by less than all of the parties to this Amendment.

 

		11.	Governing Law. This Amendment will be governed by the laws of the State of California (with the
exception of its conflict of laws provisions).

 

IN WITNESS WHEREOF, each of the Parties
has executed this Amendment, in the case of the Company by its duly authorized officer, effective as of the date set forth above.

	PULSE BIOSCIENCES, INC.	 	EXECUTIVE	 
	 	 	 	 
	 	 	 	 
	/s/ Kevin Danahy	 	/s/ Darrin Uecker	 
	By: Kevin Danahy	 	Darrin Uecker	 
	Its: President and Chief Executive Officer	 	 	 
	Date: September 20, 2022	 	Date: September 20, 2022 	 

 

 

    Page 3 of 3

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