Document:

Exhibit
10.1

 

THIS
INSTRUMENT AND ANY SECURITIES ISSUABLE PURSUANT HERETO HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES MAY NOT BE OFFERED, SOLD
OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM.

 

Nano
Precision medical, inc.

 

SAFE 

(Simple
Agreement

for
Future Equity)

 

THIS
SIMPLE AGREEMENT FOR FUTURE EQUITY (this “Agreement” or this “Safe”) is made as of February
4, 2022, by and between Nano Precision Medical, Inc., a California corporation (the “Company”), and Second
Sight Medical Products, Inc., a California corporation (the “SSMP”).

 

	1.	Investment
                                         Transaction

 

		1.1.	Advance
                                         Amount; Future Equity Undertaking. The parties are proposing and negotiating an agreement
                                         and plan of merger (the “Merger Agreement”) subject to various closing
                                         conditions, approvals by shareholders, and regulatory consents whereby the Company will
                                         become a wholly owned subsidiary of SSMP (the “Merger”). Pending closing
                                         of the Merger the Company has requested as a condition of the Merger that SSMP provide
                                         an investment advance of $8,000,000 (the “Advance Amount”)
                                         to the Company. In exchange for the Advance Amount, effective upon the termination date
                                         of the Merger Agreement without completion of the Merger (“Merger Termination
                                         Date”), the Company shall issue at the Safe Price within two business days
                                         thereof to SSMP, subject to the terms and conditions in Section 2.1 hereof, that number
                                         of shares of common stock of the Company which following issuance shall equal not less
                                         than 2.133% of the Company Capitalization (the “Safe Shares”).

 

	2.	Events

 

		2.1.	Equity
                                         Financing. In the event that the Company completes or agrees to complete an Equity
                                         Financing within one year of the Merger Termination Date, upon completion thereof the
                                         Company will automatically issue to SSMP that number of additional shares of common stock
                                         which when added to the Safe Shares previously issued shall be that number of shares
                                         of common stock of the Company so that the number of Safe Shares shall be equal to the
                                         quotient obtained by dividing the Advance Amount by the Conversion Price (as defined
                                         below) (the “Equity Adjusted Safe Shares”). The Equity Adjusted Safe
                                         Shares issued to SSMP in an Equity Financing, shall have the identical rights, privileges,
                                         preferences and restrictions as the shares of Equity Financing Shares, other than, if
                                         applicable, with respect to (i) the per share liquidation preference and the conversion
                                         price for purposes of price-based anti-dilution protection, which will equal the Conversion
                                         Price; and (ii) the basis for any dividend rights, which will be based on the Conversion
                                         Price. In connection with the issuance of the Equity Adjusted Safe Shares by the Company
                                         to SSMP pursuant to this Section 2.1, SSMP will execute and deliver to
                                         the Company all transaction documents related to the Equity Financing, which, as may
                                         be applicable, shall include registration rights under the Securities Act of 1933, as
                                         amended, for the Safe Shares or the Equity Adjusted Safe Shares, at least as beneficial
                                         as those given to any other holders of outstanding Share Capital.

 

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		2.2.	Termination.
                                         This Safe will expire and terminate (without relieving the Company of any obligations
                                         arising from a prior breach of or non-compliance with this Safe) upon the earlier of
                                         (i) one year from the Merger Termination Date, (ii) the issuance of shares of the Company
                                         Share Capital to the SSMP pursuant to Section 2.1, or (iii) the payment, or setting
                                         aside for payment, of amounts due the SSMP pursuant to Section 2.2.

 

	3.	Definitions

 

		3.1.	“Company
                                         Capitalization” means the sum of (without double-counting, in each case
                                         calculated in an as-converted basis) all shares issued and outstanding, assuming exercise
                                         or conversion of all outstanding vested and unvested options, warrants, convertible securities
                                         and other Safe’s but excluding this Safe.

 

		3.2.	Conversion
                                         Price” means either: (1) the Safe Price, or (2) the Discount Price, whichever
                                         calculation yields a greater number of Safe Shares.

 

		3.3.	“Discount
                                         Price” means the lowest price per share common stock or equivalent of the Equity
                                         Financing Shares sold in the Equity Financing multiplied by the Discount Rate.

 

		3.4.	“Discount
                                         Rate” means eighty percent (80%).

 

		3.5.	“Dissolution
                                         Event” means (i) a voluntary termination of operations, (ii) a general assignment
                                         for the benefit of the Company’s creditors or (iii) any other liquidation, dissolution
                                         or winding up of the Company (excluding a Liquidity Event), whether voluntary
                                         or involuntary.

 

		3.6.	“Equity
                                         Financing” means a bona fide transaction or series of transactions with the
                                         principal purpose of raising capital, pursuant to which the Company issues and sells
                                         shares of its Share Capital at a fixed valuation less than the Valuation Cap.

 

		3.7.	“Equity
                                         Financing Shares” means the shares of the Company issued to the entities or
                                         other persons investing new money in the Company in connection with the Equity Financing.

 

		3.8.	“Safe”
                                         means an instrument containing a future right to shares of Share Capital, similar in
                                         form and content to this instrument, purchased by investors for the purpose of funding
                                         the Company’s business operations.

 

		3.9.	“Safe
                                         Price” means a price per share equal to: (x) the Valuation Cap divided by
                                         (y) the Company Capitalization.

 

		3.10.	“Safe
                                         Shares” and “Equity Adjusted Safe Shares” mean the shares
                                         of the Company issuable to SSMP under paragraph 1.1 and 2.1

 

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		3.11.	“Share
                                         Capital” means the Share Capital of the Company, including, without limitation,
                                         the Shares as well as any other class of shares which the Company may approve and authorize
                                         from time to time.

 

		3.12.	“Valuation
                                         Cap” means $375 Million.

 

	4.	Company’s
                                         Representations

 

		4.1.	The
                                         Company is duly organized, validly existing and in good standing under the laws of the
                                         State of California, and has the power and authority to own, lease and operate its properties
                                         and carry on its business as now conducted.

 

		4.2.	The
                                         execution, delivery and performance by the Company of this Agreement is within the power
                                         of the Company and, other than with respect to the actions to be taken when equity is
                                         to be issued to the SSMP, has been duly authorized by all necessary actions on the part
                                         of the Company. This Agreement constitutes a legal, valid and binding obligation of the
                                         Company, enforceable against the Company in accordance with its terms, except as limited
                                         by bankruptcy, insolvency or other laws of general application relating to or affecting
                                         the enforcement of creditors’ rights generally and general principles of equity.
                                         The Company is not in violation of (i) its current articles of association, (ii) any
                                         material statute, rule or regulation applicable to the Company or (iii) any material
                                         indenture or contract to which the Company is a party or by which it is bound, where,
                                         in each case, such violation or default, individually, or together with all such violations
                                         or defaults, could reasonably be expected to have a material adverse effect on the Company.

 

		4.3.	The
                                         performance and consummation of the transactions contemplated by this Agreement do not
                                         and will not: (i) violate any material judgment, statute, rule or regulation applicable
                                         to the Company; (ii) result in the acceleration of any material indenture or contract
                                         to which the Company is a party or by which it is bound; or (iii) result in the creation
                                         or imposition of any lien upon any property, asset or revenue of the Company or the suspension,
                                         forfeiture, or nonrenewal of any material permit, license or authorization applicable
                                         to the Company, its business or operations.

 

		4.4.	No
                                         consents or approvals are required in connection with the performance of this Agreement,
                                         other than:
	 	 	(i) 
                              the Company’s corporate approvals; (ii) any qualifications or filings under applicable securities
                              laws; and (iii) corporate approvals necessary for authorizing Share Capital issuable pursuant to
                              Section 2.

  

		4.5.	The
                                         Company owns or possesses (or can obtain on commercially reasonable terms) sufficient
                                         legal rights to all patents, trademarks, service marks, trade names, copyrights, trade
                                         secrets, licenses, information, processes and other intellectual property rights necessary
                                         for its business as now conducted and as currently proposed to be conducted, without
                                         any conflict with, or infringement of the rights of, others.

 

	5.	SSMP’s
                                         Representations

 

		5.1.	SSMP
                                         has full legal capacity, power and authority to execute and deliver this Agreement and
                                         to perform its obligations hereunder. This Agreement constitutes valid and binding obligation
                                         of SSMP, enforceable in accordance with its terms, except as limited by bankruptcy, insolvency
                                         or other laws of general application relating to or affecting the enforcement of creditors’
                                         rights generally and general principles of equity.

 

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		5.2.	SSMP
                                         has such knowledge and experience in financial and business matters that the SSMP is
                                         capable of evaluating the merits and risks of its investment, is able to incur a complete
                                         loss of such investment without impairing SSMP’s financial condition and is able
                                         to bear the economic risk of such investment for an indefinite period of time.

 

		5.3.	SSMP
                                         confirms that it is an accredited investor as such term is defined in Rule 501 of Regulation
                                         D under the Securities Act. SSMP has been advised that this Agreement and the underlying
                                         securities have not been registered under the Securities Act, or any state securities
                                         laws and, therefore, cannot be resold unless they are registered under the Securities
                                         Act and applicable state securities laws or unless an exemption from such registration
                                         requirements is available.

 

	6.	Miscellaneous

 

		6.1.	Any
                                         provision of this Agreement may be amended, waived or modified with the written consent
                                         of both parties hereto. In addition, SSMP acknowledges and agrees that this Agreement
                                         may be amended, waived or modified with the written consent of the Company and SSMP,
                                         in which case such amendment shall apply in substantially the same manner to this Safe
                                         and any other Safe instruments entered into as part of the Safe Financing Round.

 

		6.2.	Any
                                         notice required or permitted by this Agreement will be deemed sufficient when delivered
                                         personally or by overnight courier or sent by email to the relevant address listed on
                                         the signature page.

 

		6.3.	SSMP
                                         shall not be entitled, as a holder of this Safe, to vote or receive dividends or be deemed
                                         the holder of Share Capital for any purpose, nor will anything contained herein be construed
                                         to confer on SSMP, as such, any of the rights of a shareholder of the Company or any
                                         right to vote for the election of directors or upon any matter submitted to shareholders
                                         at any meeting thereof, or to give or withhold consent to any corporate action or to
                                         receive notice of meetings, or to receive subscription rights or otherwise until shares
                                         have been issued upon the terms described herein.

 

		6.4.	Neither
                                         this Agreement nor the rights contained herein may be assigned, by operation of law or
                                         otherwise, by either party without the prior written consent of the other; provided,
                                         however, that this Agreement and/or the rights contained herein (including, without
                                         limitation, the rights to receive the shares issuable hereunder) may be assigned by SSMP
                                         without the Company’s consent: (i) to any entity which directly or indirectly,
                                         controls, is controlled by or is under common control with SSMP, including, without limitation,
                                         any general partner, managing member, officer or director of SSMP, or any venture capital
                                         fund now or hereafter existing which is controlled by one or more general partners or
                                         managing members of, or shares the same management company with, the SSMP; and provided,
                                         further, that the Company may assign this Agreement in whole, without the consent
                                         of SSMP, in connection with a reincorporation to change the Company’s domicile.

 

		6.5.	In
                                         the event any one or more of the provisions of this Agreement is for any reason held
                                         to be invalid, illegal or unenforceable, in whole or in part or in any respect, or in
                                         the event that any one or more of the provisions of this Agreement operate or would prospectively
                                         operate to invalidate this Agreement, then and in any such event, such provision(s) only
                                         will be deemed null and void and will not affect any other provision of this Agreement
                                         and the remaining provisions of this Agreement will remain operative and in full force
                                         and effect and will not be affected, prejudiced, or disturbed thereby.

 

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		6.6.	All
                                         rights and obligations hereunder will be governed by the laws of California, without
                                         regard to the conflicts of law provisions of such jurisdiction and the courts of California
                                         will have exclusive jurisdiction with respect to any matter arising hereunder.

 

[remainder
of the page intentionally left blank – signature page follows]

 

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IN
WITNESS WHEREOF, the undersigned have caused this Safe to be duly executed and delivered.

 

THE
COMPANY:

 

Nano
Precision Medical, Inc.

 

	By: 	/s/ Adam Mendelsohn 	 

Name:
Adam Mendelsohn 

Title:
Chief Executive Officer 

Address:
5858 Horton Street, # 280  

Emeryville,
California 94608 

Email:
adam@nanoprecisionmedical.com

 

SSMP:

 

Second
Sight Medical Products, Inc.

 

	By: 	/s/ Scott Dunbar 	 

Name:
Scott Dunbar 

Title:
Acting Chief Executive Officer 

Address:
13170 Telfair Avenue  

Sylmar,
California 91342 

Email:
scottd@secondsight.com

 

     6Exhibit 10.1

 

 

 

SECOND AMENDMENT

 

TO

 

AMENDED AND RESTATED
EXECUTIVE EMPLOYMENT AGREEMENT

_________________________________________

 

THIS
SECOND AMENDMENT TO AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT (the “Second Amendment”) is made and entered
into by and between Jeffrey G. McGonegal (“Employee”) and Riot Blockchain, Inc. (the “Company”),
and is effective as of the 7th day of February 2022 (the “Effective Date”). Employee and the Company shall
sometimes be referred to herein collectively as the “Parties”, with each of Employee and the Company a “Party”
to this Second Amendment.

 

RECITALS

 

WHEREAS,
the Parties have previously entered into that certain Amended and Restated Executive Employment Agreement dated as of February 7, 2020
(the “Original Agreement”), as amended by that certain First Amendment to Executive Employment Agreement, dated as
of February 8, 2021 (the “First Amendment” and collectively, with the Original Agreement, the “Agreement”).
 

 

WHEREAS,
the Parties desire to amend certain terms of the Agreement, to reflect the modifications as set forth in this Second Amendment.

 

NOW,
THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements hereinafter set forth, the Parties agree
that the Agreement is amended as follows:

 

1.   The “Effective Date” of the Agreement is hereby amended and replaced with February 7, 2022, and that all references to the
“Effective Date” in the Agreement shall mean February 7, 2022, all of which is hereby incorporated into the Agreement.

 

2.   All references to December 31, 2021 in the Agreement are replaced with references to December 31, 2022, and all references to February
7, 2022 are replaced with references to February 7, 2023, all of which is hereby incorporated into the Agreement.

 

3.   The Parties agree that Section 2 of the Agreement is deleted in its entirety and replaced with new Section 2, which is hereby incorporated
into the Agreement, as follows:

 

2.     Term of Employment. The term of Employee’s employment under this Agreement shall be for a one (1) year period dating
February 7, 2022 to February 7, 2023 (the “Term”), unless terminated earlier pursuant to Section 6 of this Agreement. Beyond
the Term, Employee’s employment with the Company may be extended by the parties upon mutual written agreement signed by both parties
or upon executing a new employment agreement. 

 

4.   The Parties agree that Sections 4.a. and 4.b. of the First Amendment remain in their entirety and Section 4.c., is hereby deleted, except
that the reference to December 31, 2021, in Section 4.b., of the First Amendment is hereby replaced with reference to December 31, 2022
as per paragraph 2 of this Second Amendment.

 

 

    	  

    	 

    

 

5.    Notwithstanding anything in this Second Amendment to the contrary, Section 5 of the Agreement (including all subparts), and all restrictive
covenants, terms, and conditions contained therein, shall remain uninterrupted and in full force and effect. Neither this Second Amendment
nor anything contained herein shall be deemed to have caused a break in Employee’s employment with the Company or otherwise serve
as a basis for either Party to assert that the applicable post-employment restrictions have commenced.

 

6.    Section 7.c. of the Agreement is deleted in its entirety and replaced with new Section 7.c., which is hereby incorporated into the Agreement,
as follows:

 

c. 
This Agreement, as amended by that certain First Amendment to Amended and Restated Executive Employment Agreement between Employee and
Company dated as of February 8, 2021, and as further amended by that certain Second Amendment to Amended and Restated Executive Employment
Agreement between Employee and Company dated as of February 7, 2022, constitutes the entire understanding between Employee and the Company
with respect to the subject matter hereof and supersedes any and all prior understandings and agreements, written or oral, with respect
to the subject matter hereof. Except as provided in Section 5.h., this Agreement may not be amended or modified except in a writing signed
by both parties hereto. 

 

7.    Except as modified herein, all terms and conditions of the Agreement shall remain unchanged and in full force and effect. To the extent
that there is any inconsistency between the terms and conditions of this Second Amendment and the terms and conditions of the Agreement,
the terms and conditions of this Second Amendment shall prevail.

 

8.    This Second Amendment may be executed in any number of counterparts, all of which together shall constitute one and the same instrument.
Signing of this Second Amendment and transmission of the signed Second Amendment by electronic document transfer will be acceptable and
binding upon the parties as of the Effective Date.

 

The
undersigned, intending to be legally bound, have executed this Second Amendment to the Amended and Restated Executive Employment Agreement
and shall be effective as of the Effective Date noted above.

 

	JEFFREY G. MCGONEGAL

     

     
	 	RIOT
    BLOCKCHAIN, INC.

     

	/s/
                                            Jeffrey G. McGonegal

    (Signature)
	 	By:
    /s/ Jason Less       
	 	 	Name: Jason Les

    Title: Chief Executive Officer

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