Document:

ex_404875.htm

Exhibit 10.1

 

Interest Free Loan Agreement

 

This Interest Free Loan Agreement (this “Agreement”) is entered into as of July 28, 2022 (the “Effective Date”) by and between NovAccess Global Inc., a Colorado corporation (“NovAccess”), and Jason M. Anderson (“Anderson”).

 

Whereas, NovAccess is currently seeking financing to fund its operations, but requires a short-term loan to fund operations until longer-term financing can be obtained; and

 

Whereas, Anderson is a member of the NovAccess board of directors and is willing to provide to NovAccess a short-term interest-free loan for specified purposes, reflecting his faith in NovAccess.

 

Now, Therefore, the parties agree as follows:

 

1.         Loan and Repayment. On the Effective Date, Anderson has loaned to NovAccess $12,500. NovAccess will repay to Anderson without interest all amounts loaned under this Agreement on the earlier to occur of: (a) October 31, 2022; or (b) the receipt by NovAccess of debt or equity financing of at least $3.0 million (the “Due Date”). If the Due Date has not occurred by August 29, 2022, then Anderson will consider loaning NovAccess an additional $12,500 at the request of NovAccess, which additional loan will be subject to all of the terms of this Agreement.

 

2.         Default. If NovAccess fails to repay all amounts loaned under this Agreement on the Due Date, then the balance shall bear interest at 10% per annum and NovAccess agrees to pay, in addition to the principal and interest, reasonable attorneys’ fees and collection costs incurred by Anderson.

 

3.         Miscellaneous.

 

(a)         Successors and Assigns. The rights and obligations of the parties are binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.

 

(b)         Waiver and Amendment. Any provision of this Agreement may only be amended, waived or modified upon the written consent of NovAccess and Anderson.

 

(c)         Governing Law. This Agreement and all actions arising out of or in connection with this Agreement shall be governed by and construed in accordance with the laws of the State of Ohio, without regard to the conflicts of law provisions of the State of Ohio, or of any other state.

 

(d)         Waiver of Jury Trial. Each of NovAccess and Anderson agrees to waive their respective rights to a jury trial of any claim or cause of action based upon or arising out of this Agreement.

 

[Signature Page Follows]

 

 

 

 

 

 

 

 

In Witness Whereof, the parties have signed this Agreement as of the Effective Date.

 

	
			NovAccess Global Inc.

			/s/ Dwain K. Morris-Irvin

				 	
			/s/ Jason M. Anderson

			
	
			By Dwain K. Morris-Irvin

			Chief Executive Officer

				 	
			Jason M. Andersonex_404876.htm

Exhibit 10.2

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM. THE COMPANY MAY REQUIRE AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH OFFER, SALE OR TRANSFER, PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.

 

NovAccess Global Inc.

Convertible Promissory Note

 

	Up to $25,000	July 29, 2022

 

For Value Received, NovAccess Global Inc., a Colorado corporation (the “Company”), hereby promises to pay to Letzhangout, LLC (“Holder”), or its registered assigns, in lawful money of the United States of America, the principal sum, plus interest on the aggregate unpaid principal balance from time to time outstanding at the rate of 12% per annum from the date hereof (the “Effective Date”), as provided for in this Convertible Promissory Note (this “Note”).

 

1.         Payment. As of the Effective Date, Holder has loaned to NovAccess $12,500. NovAccess will repay to Holder all principal amounts outstanding under this Note, plus accrued and unpaid interest, on the earlier to occur of: (a) October 31, 2022; or (b) the receipt by NovAccess of debt or equity financing of at least $3.0 million (the “Due Date”). If the Due Date has not occurred by August 29, 2022, then Holder agrees to loan NovAccess an additional $12,500 at the request of NovAccess, which additional loan will be subject to all of the terms of this Note. The Company may prepay all or any part of the balance owed under this Note at any time without penalty. Upon payment in full of the principal balance of this Note, and accrued and unpaid interest, this Note will be automatically cancelled and the Company’s payment obligations under this Note will be extinguished.

 

2.         Events of Default. The Company’s failure to pay any obligation under this Note when due constitutes an “Event of Default” under this Note. While an Event of Default has occurred and is continuing, all amounts due under this Note, including any accrued interest payable hereunder, will bear additional interest at a rate of 14% per annum.

 

3         Conversion Right. The Holder shall have the right, beginning on the Effective Date and ending on the date of payment in full of all amounts outstanding under this Note, to convert all or any part of the outstanding and unpaid principal, interest, and any other amounts under this Note, into fully paid and non-assessable shares of the Company’s common stock, no par value (the “Common Stock”), or any shares of capital stock or other securities of the Company into which such Common Stock is hereafter changed or reclassified, at the Conversion Price (as defined below) as provided herein (a “Conversion”). The number of shares of Common Stock to be issued upon each Conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date of the Holder’s written notice of Conversion delivered to the Company (the “Notice of Conversion”). The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of the principal,

 

1

 

 

interest and any other payments due under this Note, specified by the Holder in the Notice of Conversion be converted in such Conversion. Subject to the adjustments described herein, the “Conversion Price” shall equal $0.15. If the Company splits or combines the Common Stock or engages in any comparable transaction, the Conversion Price shall be adjusted accordingly as determined in good faith by the Company’s board of directors (for example, if the Common Stock is reverse split one-for-ten, then the Conversion Price then in effect would be multiplied by ten). The Company shall notify Holder in writing of any adjustment to the Conversion Price. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless: (a) such shares are sold pursuant to an effective registration statement under the Securities Act; (b) the shares to be sold or transferred may be sold or transferred pursuant to Rule 144 under the Securities Act or other applicable exemption; or (c) such shares are transferred in a private sale subject to applicable restrictions, and each certificate for shares of Common Stock issuable upon conversion of this Note will bear an appropriate restrictive legend.

 

4.         Miscellaneous.

 

(a)    Successors and Assigns; Transfer of this Note. The rights and obligations of the Company and Holder shall be binding upon and benefit the successors, assigns, heirs, administrators and transferees of the parties.

 

(b)    Waiver and Amendment. Any provision of this Note may be amended, waived or modified upon the written consent of the Company and the Holder.

 

(c)    Governing Law. This Note and all actions arising out of or in connection with this Note shall be governed by and construed in accordance with the laws of the State of Ohio, without regard to the conflicts of law provisions of the State of Ohio, or of any other state.

 

(d)    Waiver of Jury Trial; Judicial Reference. By acceptance of this Note, Holder hereby agrees and the Company hereby agrees to waive their respective rights to a jury trial of any claim or cause of action based upon or arising out of this Note.

 

(e)    Holder’s Acknowledgments. Holder represents that Holder is an accredited investor as defined in Rule 501 under the Securities Act of 1933 and understands that this Note is a risky investment and can bear the loss of the full amount invested.

 

(f)         Attorneys’ Fees. If the amounts due under this Note or any part thereof is collected in bankruptcy, receivership or other judicial proceedings, or if this Note is placed in the hands of an attorney for collection after default, the Company agrees to pay, in addition to the principal and interest payable hereunder, reasonable attorneys’ fees and costs incurred by Holder.

 

(Signature Page Follows)

 

 

2

 

 

The Company has caused this Promissory Note to be issued as of the date first written above.

 

NovAccess Global Inc.

 

/s/ Dwain K. Morris-Irvin                           

By Dwain K. Morris-Irvin, Chief Executive Officer

 

 

 

 

3Exhibit 10.1

 

 

 

THIRD AMENDMENT

TO THE RIOT BLOCKCHAIN,
INC. 2019 EQUITY INCENTIVE PLAN

 

This Third Amendment (the
“Third Amendment”) to the Riot Blockchain, Inc. 2019 Equity Plan, as amended (the “Plan”), as adopted
by the unanimous approval of the members of the Board of Directors (the “Board”) of Riot Blockchain, Inc. (the “Company”)
upon the recommendation of the Compensation and Human Resources Committee of the Board (the “Committee”), amends the
Plan as set forth herein, effective as of the date ratified and approved by the stockholders of the Company set forth at the end of this
document (the “Effective Date”). Capitalized terms not otherwise defined herein shall have the meanings ascribed to
them in the Plan.

 

WHEREAS, the Plan,
as adopted by the Committee and the Board, and as ratified and approved by the stockholders effective October 23, 2019, was
adopted as the equity compensation plan of the Company to promote the success of the Company and to increase stockholder value
by providing an additional means through the grant of Awards to attract, motivate, retain and reward selected employees and other
eligible persons; and

 

WHEREAS, the First
Amendment to the Plan (the “First Amendment”) was adopted by the Company and became effective as ratified and
approved by the stockholders on November 12, 2020, to increase the number of shares of Common Stock available for issuance
under the Plan (the “Share Reserve”) by 3,500,000 additional shares of Common Stock; and

 

WHEREAS, the
Second Amendment to the Plan (the “Second Amendment”) was adopted by the Company and became effective as ratified
and approved by the stockholders on October 19, 2021, to increase the number of shares of Common Stock available for issuance
under the Plan (the “Share Reserve”) by 4,400,000 additional shares of Common Stock; and

 

WHEREAS, the Committee,
both in its capacity as Plan Administrator and in furtherance of its responsibility to oversee the compensation and equity incentive
practices, plans, and procedures of the Company, has been tasked with the oversight and administration of the Plan; and

 

WHEREAS, the Committee
having considered the Company’s issuance of the Awards since the stockholders adopted the Plan, as amended, the Company’s
expected needs for equity compensation and the shares of Common Stock available for issuance in the Share Reserve, has determined
to adopt this Second Amendment to the Plan to increase the number of shares of Common Stock available for issuance under the Plan
by 10,000,000 additional shares of Common Stock; and

 

NOW, THEREFORE, as
approved by the Board upon the recommendation of the Committee as of May 31, 2022 and as approved by the stockholders of
the Company as of the date listed below, this Third Amendment to the Plan is hereby adopted and approved in all respects. Accordingly,
pursuant to this Third Amendment, the Plan is hereby amended as follows:

 

1.  As
of the Effective Date, Section 4.2 of the Plan is hereby amended by deleting it in its entirety and is replaced with
the following:

 

	​	“4.2 Share Limit. The maximum number of shares of Common Stock that may be delivered pursuant to Awards granted to Eligible Persons under this Plan may not exceed 21,500,000 (the “Share Limit”). Such shares of Common Stock may be authorized and unissued shares or, to the extent permitted by applicable law, issued shares of Common Stock that have been reacquired by the Company. Such shares of Common Stock may be used for any type of Award under the Plan, and any or all of the shares of Common Stock up to the Share Limit may be allocated to Incentive Stock Options. Solely for the purpose of determining the number of shares of Common Stock available for Awards under this Section 4.2, the number of shares of Common Stock available for issuance under the Plan shall be reduced by one (1.00) share of Common Stock for every one (1.00) share of Common Stock granted in respect of an Award; provided, however, that in the case of an Award that provides for a range of potential payouts of shares of Common Stock, the number of shares of Common Stock available for issuance under the Plan shall be reduced by the maximum number of shares of Common Stock that may be paid under such an Award. The foregoing Share Limit is subject to adjustment as contemplated by Section 4.3, Section 7.1, and Section 8.10.”	​

 

2.  Except
as specifically set forth in this Second Amendment, no provision of the Plan is changed, and the Plan is hereby ratified in its entirety
and shall remain in full force and effect.

 

As adopted by the Board
of Directors of Riot Blockchain, Inc. on May 31, 2022.

 

As adopted by the Stockholders
of Riot Blockchain, Inc. on July 27, 2022

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