Document:

saex-ex102_7.htm

 

Exhibit 10.2

SAEXPLORATION HOLDINGS, INC.

AMENDED & RESTATED 2018 LONG TERM INCENTIVE PLAN

TRUE-UP MIP AWARD RESTRICTED STOCK UNIT NOTICE AND AGREEMENT

 

This Restricted Stock Unit Notice and Agreement (the “Agreement”) is made as of [DATE], (the “Grant Date”) between SAExploration Holdings, Inc., a Delaware corporation (the “Company”), and [NAME] (the “Participant”).  

1.Grant.  The Company hereby grants to Participant an award (the “Award”) of [NUMBER] Restricted Stock Units pursuant to the terms of this Agreement and under Section 11 of the SAExploration Holdings, Inc. Amended & Restated 2018 Long-Term Incentive Plan (the “Plan”) as an inducement for his or her continued and effective performance of services to the Company.  This Award constitutes a Reserved MIP Award under Section 11 of the Plan and represents Participant’s right to receive a certain number of shares of Common Stock upon settlement of the Restricted Stock Units pursuant to Section 3 below, subject to the terms of this Agreement.  The Restricted Stock Units do not constitute shares of Common Stock and Participant shall have no voting or dividend rights relating thereto unless and until such Restricted Stock Units are settled in accordance with Section 4 below.

2.Vesting and Forfeiture.  This Award shall become vested 50% on April 12, 2019 and 50% on September 29, 2021 unless it shall vest before such date under the terms of the Plan.  This Award is subject to forfeiture in accordance with the applicable provisions of the Plan.

3.Settlement.  The Restricted Stock Units shall be settled in accordance with the applicable provisions of Section 11(e) of the Plan.

4.Compliance with Laws and Regulations.  The issuance, transfer, vesting, and ownership of Common Stock shall be subject to compliance by the Company and Participant with all applicable requirements of federal and state securities laws and with all applicable requirements of any stock exchange on which the Company’s Common Stock may be listed at the time of such issuance or transfer.  Participant agrees to cooperate with the Company to ensure compliance with such laws and requirements.  Prior to issuance or transfer of Common Stock, the Company may require Participant to execute and deliver a letter of investment intent in such form and containing such provisions as requested by the Committee.

5.Tax Withholding.  Participant shall be responsible for any federal, state, or local taxes of any kind required by law to be withheld, if any, with respect to the Restricted Stock Units (“Withholding Taxes”).  If Participant does not make arrangements to timely pay any Withholding Taxes, the Company is authorized to, and shall, withhold the Withholding Taxes from the shares of Common Stock payable to Participant with respect to the Restricted Stock Units.  The Company shall, to the extent permitted by law, 

1

 

 

also have the right to deduct any Withholding Taxes from any payment of any kind otherwise due to Participant. 

6.Fractional Shares.  Any fraction of a share of Common Stock which would be required to be delivered on payment of the Restricted Stock Units shall be disregarded and the remaining amount due shall be paid in cash by Participant.  

7.No Right to Continued Employment.  Nothing in this Agreement shall be deemed by implication or otherwise to impose any limitation on any right of the Company to terminate Participant’s service at any time and for any reason.

8.No Rights as a Stockholder. The Restricted Stock Units do not constitute Common Stock and Participant shall have no voting or dividend rights relating thereto unless and until such Restricted Stock Units are settled in accordance with Section 4.

9.Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to its conflict of law principles.  If any provision of this Agreement is determined by a court of law to be illegal or unenforceable, then such provision will be enforced to the maximum extent possible and the other provisions will remain fully effective and enforceable.

10.Binding Effect; Modification.  This Agreement is binding upon the Company and Participant and their respective heirs, executors, administrators, legal representatives, successors and assigns.  The Agreement may not be modified except in writing signed by both parties.

11.Restrictions.  None of the Restricted Stock Units granted to Participant shall be subject to anticipation, alienation, sale, assignment, transfer, pledge, encumbrance, or charge, and any attempt to anticipate, alienate, sell, assign, pledge, encumber, or charge the same shall be void.  No Restricted Stock Units shall in any manner be liable or subject to any of Participant’s debts, contracts, liabilities or torts unless and until such benefit is actually paid and received by Participant.  

12.Headings and Sections.  The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  Any references to sections in this Agreement shall be to sections of this Agreement unless otherwise expressly stated as part of such reference.

13.Plan and Award Agreement.   This Award is subject to all of the terms and conditions in this Agreement and in the Plan.  The terms and provisions of the Plan are incorporated herein by reference.  In the event of a conflict or inconsistency between the terms and provisions of the Plan and this Agreement, the Plan shall govern and control.  All of the capitalized terms not otherwise defined in this Agreement will have the same meaning in this Agreement as in the Plan.  Participant hereby acknowledges receiving a copy of the Plan.  This Agreement and the Plan constitute the entire agreement of the parties and supersede all prior undertakings and agreements with respect to the 

2

 

 

subject matter hereof.  Capitalized terms used in this Agreement that are not otherwise defined herein shall have the meaning given such terms under the Plan.

14.Representations and Warranties of Participant.  Participant represents and warrants to the Company that Participant has received a copy of the Plan and has read and understands the terms of the Plan and this Agreement, and agrees to be bound by their terms and conditions.  Participant acknowledges that Participant has been advised to consult with a tax adviser with respect to the possible tax consequences of the Award.

15.Code Section 409A.  This Agreement is intended to be exempt from the provisions of Section 409A of the Code, and this Agreement shall be construed and interpreted in accordance with such intent.  To the extent the Restricted Stock Units awarded under this Agreement are determined to constitute “non-qualified deferred compensation” within the meaning of Section 409A, this Agreement shall be governed by the terms of Section 15 of the Plan.  Notwithstanding anything to the contrary, none of the Company, its officers, directors, Participants, agents or representatives guarantees that this Agreement complies with the provisions of Section 409A of the Code and none of the foregoing shall have any liability for the failure of this Agreement to comply with the provisions of Section 409A of the Code.

16.No Secured Rights.  Participant’s right to payments under this Agreement shall not constitute nor be treated as property or as a trust fund of any kind.  Participant’s rights are limited exclusively to the right to receive shares of Common Stock as provided in the Agreement.  Participant shall not have any rights as an owner of the Company with respect to any Restricted Stock Units granted to Participant.  All benefits payable to Participant shall be payable solely from the general assets of the Company and no separate or special funds shall be established and no segregation of assets shall be made to assure the payment of benefits to Participant.  Participant’s rights shall be limited to those rights which are specifically enumerated in the Agreement, and such rights shall be for all purposes, unsecured contractual creditors’ rights against the Company only.

17.Provisions for Canadian Residents.  Notwithstanding any provisions in this Agreement, the Restricted Stock Units shall also be subject to the special terms and conditions set forth on Annex A hereto if you reside in Canada.  

 

[Signature Page Follows]

 

3

 

 

IN WITNESS WHEREOF, this Agreement has been duly executed and delivered effective as of the Grant Date.

 

SAEXPLORATION HOLDINGS, INC.

 

 

By: /s/Jeff Hastings
Name: Jeff Hastings

Title: Chairman and Chief Executive Officer

 

 

 

PARTICIPANT

 

 

 

[INSERT  NAME]

 

 

 

4

 

 

ANNEX A

CANADIAN PROVISIONS APPLICABLE TO RESTRICTED STOCK UNITS

The Restricted Stock Units shall subject to the special terms and conditions set forth below if you reside in Canada. In addition, if you relocate to Canada, the special terms and conditions set forth below will apply to you, to the extent the Company determines that the application of such terms and conditions is necessary or advisable in order to comply with local law or facilitate the administration of the Plan.  

The information is based on the securities, exchange control, and other laws in effect in the respective countries as of September 26, 2016.  Such laws are often complex and change frequently.  As a result, it is strongly recommended that you not rely on the information below as the only source of information relating to the consequences of your participation in the Plan because the information may be out of date at the time you vest in your Restricted Stock Units or sell Common Shares acquired under the Plan.

In addition, the information set forth below is general in nature and may not apply to your particular situation, and the member of the Company Group are not in a position to assure you of a particular result.  Accordingly, you are advised to seek appropriate professional advice as to how the relevant laws may apply to your situation.

Finally, if you are a citizen or resident of a country other than the one in which you are currently working, transferred employment after the Restricted Stock Units were granted to you, or are considered a resident of another country for local law purposes, the information contained herein may not apply.

1. Units Settled in Common Shares Only.  Notwithstanding anything to the contrary in the Plan, the Stock Units awarded to you hereunder shall be paid in shares only and do not provide any right to receive a cash payment.

2.Additional Restrictions on Resale.  In addition to the restrictions on sale and transfer in Section 11 of the Agreement and under the Plan, securities acquired under the Plan may be subject to certain restrictions on resale imposed by Canadian provincial securities laws.  You are encouraged to seek legal advice prior to any resale of such securities.  In general, participants resident in Canada may resell their securities in transactions carried out on exchanges outside of Canada.

3.Tax Reporting.  The Income Tax Act (Canada) and the regulations thereunder require a Canadian resident individual (among others) to file an information return disclosing prescribed information where, at any time in a tax year, the total cost amount of such individual’s “specified foreign property” (which includes shares, options and stock units) exceeds Cdn.$100,000.  You should consult your own tax advisor regarding this reporting requirement.

 

 

 

 

 

 

The following provision will apply if you are a resident of Quebec:  

4.Language Consent.  The parties acknowledge that it is their express wish that this Agreement, as well as all documents, notices, and legal proceedings entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English.

Les parties reconnaissent avoir exigé la rédaction en anglais de cette convention, ainsi que de tous documents, avis et procédures judiciaires, exécutés, donnés ou intentés en vertu de, ou liés directement ou indirectement à la présente convention.RESTRUCTURING AGREEMENT

 

This RESTRUCTURING AGREEMENT, dated March 28, 2019 (“Restructuring Agreement”), is made
among Generex Biotechnology Corporation (the “Company” or “Generex”), NuGenerex Distribution Solutions
2, LLC, (the “Borrower”), Veneto Holdings, L.L.C. (“Veneto”) and the members of Veneto identified on Schedule
1 – Payout Breakout hereto (each a “Member” or “Issuee” and, collectively, the “Members”
or “Issuees”).

 

WHEREAS, Veneto and NuGenerex Distribution Solutions, LLC (“Borrower”), and Generex Biotechnology
Corporation (the “Company” or “Generex”), previously entered into that certain Asset Purchase Agreement,
dated October 3, 2018 (“APA”), and further amended on November 1, 2018, and January 15, 2019.

 

WHEREAS, Borrower has issued to Veneto a Promissory Note dated November 1, 2018 which was originally
due January 15, 2019 (the “Promissory Note”) in the principal amount of $35,000,000, and is hereby being amended to
be compensated in the common voting shares of Generex, payable under the terms and conditions contained herein;

 

WHEREAS, the Parties agree to satisfy all of the obligations of Generex, NuGenerex, and Joseph Moscato
stemming from the APA and Amended APA by the issuance of 8,400,000 shares of Generex common voting shares and 5,500,000 common
voting shares of Antigen Express to Veneto and its Members;

 

WHEREAS, Generex is in the process of setting up a trust, which it anticipates shall have a sufficient
number of fully registered, and fully paid up freely tradable shares of Generex to satisfy the obligations hereunder on or about
April 22, 2019; WHEREAS, if the Shares from the contemplated trust cannot be issued in the time frame discussed above, April 22,
2019, then Generex will issue shares out of Treasury in lieu of the afore-contemplated trust shares, and make best efforts to
cancel a reciprocal amount of trust shares;

 

WHEREAS, the following Schedules are hereby incorporated by reference herein: Schedule 1 – Payout
Breakout

 

NOW, THEREFORE, in consideration of the mutual promises and agreements set forth herein, the Parties
agree as follows:

 

    	 	1	 

     

    

 

ARTICLE I

 

1. Resolution of Conflict of Terms. To the terms hereof conflict with the APA, the Promissory Note,
or any agreement entered into between the Parties to this Restructuring Agreement, the terms hereof shall supersede.

 

2. BBVA/Compass Bank. Any provisions contained in the original APA regarding the obligation to satisfy
Compass Bank (BBVA) shall survive and supersede this agreement.

 

ARTICLE II

GRANT OF SHARES

 

3. Grant of Generex Shares. Generex hereby grants to Veneto, and its Members, (jointly, the “Issuees”)
listed inter alia, 8,400,000 shares of Generex. Such shares shall be distributed on or before April 22, 2019 (“Maturity
Date”) from the contemplated trust as discussed in the recitals. If Generex cannot cause 8,400,000 shares to be issued on
or before the Maturity Date to be distributed from the contemplated trust, Generex will cause the issuance of 8,400,000 common
voting shares of Generex from Treasury on the Maturity Date at the close of business by transmitting to Generex’s transfer
agent a corporate or board resolution issuing the aforementioned shares.

 

4. Grant of Antigen Shares. On or about February 25, 2019 Generex caused a dividend distribution of
Antigen Express. The Record Date of the dividend was after the contractual obligation and shares were to have been distributed
to Veneto and the Issuees prior to February 25, 2019. Therefore, Generex will cause the issuance of 5,500,000 shares of Antigen
Express to the Issuees, as the shares were owed to the Issuees prior to the dividend distribution of Antigen contractually, but
never issued or delivered.

 

5. Delivery of Shares. Generex hereby undertakes to cause actual delivery of the shares contemplated
herein, either via physical delivery of a certificate of electronic transfer of shares. Generex hereby warrants it will not cause
frustration of it’s delivery obligations hereunder, on or before the Maturity Date.

 

6. Leak Out. Each Issuee hereto hereby warrants and represents that after the removal of the
restrictive legend, if any, of any Shares issued pursuant to this Restructuring Agreement, no Issuee will sell no more than
10% of the daily average volume of Generex shares per trading day, or 10% of average weekly volume. Generex shall have the
right, but not obligation, to demand trade confirmations or runs from each and every Issuee, on the aggregate or spot basis
to confirm the adherence hereto at any reasonable time, reasonable period, and reasonable frequency, and may do so on a
periodic basis without waiver of any rights hereunder. The Parties hereby stipulate that failure to adhere to this provision
will result in monetary damages payable to Generex for any over-sell, or specific performance of buy-in, or combination
thereof, at the Option of Generex. No Issuee shall be liable for any other Issuee’s breach of this or any provision of
this Restructuring Agreement. The trading volume limitations set forth in this paragrap shall not apply (i) in the event
Generex’s common shares become listed on any national stock exchange, (2) in the event the average daily trading volume
of Generex common stock exceeds 2,000,000 shares for a period of 30 consecutive trading days.

 

    	 	2	 

     

    

 

6.1. Block Trade Exception. A block trade accomplished off market and/or where said trade does not
negatively affect the stock price of Generex by more than 10%, and is not at an effective at per share price lower than the VWAP
of the preceding 10 trading days shall be permitted only if:

 

6.1.1. The transferee notifies Generex within 3 business days
prior to transfer;

 

6.1.2. The transferee affirmatively informs and obligates the transferor to adhere to the leak out provision
contained above in writing;

 

6.1.3. The transferee agrees to make their shares available for inspection as above;

 

6.1.4. All rights
to any downside protection are waived upon a Block Trade, only applicable to the Issuee who was the transferee.

 

7. Separate Accounts. Each Issuee shall hold any distribution or issuance in a separate brokerage
account, for ease of sale audits and retention of privacy rights. Each separate account shall be a cash account where no hypothecation
shall be allowed, and each Issuee shall cause their respective account to have such prohibitions so as to safeguard against hypothecation.
Furthermore, no Issuee shall short sell their respective positions in Generex, and each and every Issuee shall not suffer any
front-running of their positions by their respective Brokers. Any Issuee that shall not adhere to this provision hereby waives
their Downside Protection.

 

8. Definition of Issuees. The specific amounts issued to Issuees shall be the pro rata breakout as
listed in the previous January 15, 2019 agreement and listed herein as Schedule 1. which shall be incorporated herein by reference.

 

9. Purchaser’s Representative. If any Issuee is not an Accredited Investor, Kevin Kuykendall
shall act as that Issuee’s purchaser’s representative.

 

10. Piggy-Back Registration Rights. Generex hereby grants the right to have any Generex common voting
shares issued under this Grant, specifically not including any securities contemplated in the Downside Protection, the right of
inclusion in any Registration statement filed with the Securities and Exchange Commission (“Registration”), if any.
All shares contemplated herein to be included in any contemplated Registration shall be parri passu.

 

    	 	3	 

     

    

 

ARTICLE III

GRANT OF DOWNSIDE PROTECTION

 

11. Generex shall grant to the Issuees downside protection as further
consideration for the downward modification of the purchase price of the January 15, 2019 agreement, and to

 

doubly ensure the realized value of the instant agreement. The downward protection
shall be a grant of such further shares as to ensure the Issuees receive a realized value of $2.50 per Generex common share. This
downside protection shall not apply to Antigen shares.

 

12. Generex shall cause to be delivered to the Issuees Compensatory common
voting shares as to be derived as follows:

 

13. Option Proper. On the Pay Date of June 15, 2020 (“Pay Date”) the Issuees will receive
the Strike Price of $2.50 per share of Generex (“Strike Price”) times the shares issued (8,400,000) minus the Sale
Price of the proceeds of sale (“Sale Price”) times the number of shares sold (“Shares Sold”) divided by
the Spot Price of the price of the common voting shares of Generex on the Pay Date (“Spot Price”) to determine the
number of Compensatory Shares issued to the respective Issuee. (“Compensatory Shares”) Any sale above the Strike Price
shall be discarded. Each Issuee shall receive individualized allocations, and no Compensatory Shares shall be aggregated, assigned,
traded, or otherwise transferred.

 

13.1. Floor on the Option. The Sale Price shall, for calculation under this agreement, shall be no
less than $1.50 per share. Any actual proceeds of sale that are less then $1.50 per shares shall be calculated at $1.50 regardless
of the actual proceeds of sale. As such, the Issuees shall have downside protection from $2.50 to $1.50.

 

14. Value sold. Each Issuee shall have the affirmative obligation to send such records of sale from
the Maturity Date to the Pay Date to Generex on or before 10 business days after the Pay Date (“Submission Date”).
Generex will then calculate the Compensatory Shares due under the aforementioned calculation within 10 business days after the
Submission Date (“Calculation Date”) and then submit the Compensatory Shares for issuance within 3 business days after
the Calculation Date. (“Transmittal Date”). Any Issuee that does not submit their records of sale by the Submission
Date, without written permission from Generex, hereby forfeits their right to Compensatory Shares.

 

15. Voiding of Downside Protection. No Compensatory Shares shall be owed if:

 

15.1.
the VWAP of Generex shares in any period of 90 consecutive trading days is over $5 per share; or

 

15.2. Any Issuee shall be found
to have violated the 10% daily volume restriction contained in the leak-out; or

 

15.3. Any Issuee found to have violated or circumvented
the terms and conditions contained herein.

 

16. Fractional Shares. No fractional shares shall be issued. Any fractional shares shall be rounded
down, and all final calculations for fractional shares shall be aggregate per Issuee.

 

    	 	4	 

     

    

 

17. Eligibility. This Restructuring Agreement only applies to shares sold on a registered exchange
(“Open Market”) that originated from the Agreement. Any other shares Issuees may acquire, via private transactions
or in the open market or otherwise, are not eligible under this Agreement.

 

18. Restriction on Compensatory Shares, if any. The Compensatory Shares shall be, for Rule 144 purposes,
issued as restricted share subject to the applicable holding period from the creation of this Option.

 

18.1. Generex
has the option to assign the duty to deliver the Compensatory shares to a third party, but shall retain all liability for failure
to perform said obligation hereunder. Any delivery of such shares shall be subject to the applicable holding period they may be
under, if any.

 

19. Payment of Compensatory Shares. All Compensatory shares shall be issued to directly to the Issuees,
as defined in the Restructuring Agreement. Delivery of Compensatory Shares shall be no more than 3 days after the Pay Date and
shall not depend on any submission, request or demand by any Member.

 

20. Veneto and Member purchaser representative. For purposes of this Restructuring Agreement, Kevin
Kuykendall shall be the designated purchaser’s representative for any Member who is not an Accredited Investor.

 

21. Dilution Effect. No dilutive effect shall be given to any issuance, if any, unless the aggregate
effect on dilution shall be material. A material dilution shall be an aggregate issuance exceeding 3% of the outstanding common
voting shares of Generex, for the purposes of this Restructuring Agreement.

 

22. No Circumventions. The Parties hereto hereby agree that they will adhere to the spirit of the
terms and conditions contained, which shall be the overriding principal hereof, and shall not cause any third party, employee,
affiliate, or other person to do such acts in their stead to benefit the Parties if they would not be able to do so under the
terms and conditions of this Restructuring Agreement.

 

23. One and Done. These Compensatory Shares shall be a one-time compensation and no further obligation(s)
should be read or construed herein.

 

24. No Implied or Stated Duties. This Restructuring Agreement shall neither create nor imply any representations,
warranties, obligations or duties on the part of any Member or Veneto whatsoever that is not set forth in a separate agreement,
and no action shall be commenced against same under this Agreement by any other Party hereto for failure to adhere to any duty
or obligation.

 

25. Waiver of Downside Protection. If any new material negative information becomes public that
has not been formally disclosed during the due diligence between the parties in preparation for the APA, concerning the
criminal culpability arising from, pertaining to, or otherwise concerning, the operations of Veneto, prior to 1 November
2018, including alleged continuing wrong from prior to 1 November 2018 past that date, the Downside Protection contained
herein shall be null and void ab initio.

 

    	 	5	 

     

    

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

In order to induce Veneto and the Members to enter into this Restructuring and Release Agreement,
the Company hereby represents and warrants to Veneto and the Members that as of the date hereof:

 

26. Organization and Good Standing. The Company is duly organized and existing in good standing in
its jurisdiction of incorporation and is duly qualified as a foreign corporation and authorized to do business in all other jurisdictions
in which the nature of its business or property makes such qualification necessary. The Company has the corporate power to own
its properties and to carry on its business as now conducted and as proposed to be conducted.

 

27. Authorization. The execution, delivery and performance by the Company of this Voidable Restructuring
Agreement, and the issuance by the Company of the Generex Shares, Antigen Express Shares and LTIP Shares hereunder, (a) is within
the Company’s corporate power and authority, (b) has been duly authorized by all necessary corporate proceedings, (c) does
not conflict with or result in any breach of any provision of the Charter or Bylaws of the Company or any agreement or instrument
to which the Company is a party or by which the Company or any of its properties is bound or the creation of any Lien upon any
of the property, and (d) does not require any filing, consent or approval pursuant to the Charter or Bylaws of the Company or
any law or regulation (including, without limitation, any applicable environmental restrictive transfer law or regulation) or
order, judgment, writ, injunction, license, permit, agreement or instrument, and does not breach or is in contravention to any
other existing agreement to which Generex or Antigen Express are parties with any third party.

 

28. Enforceability. The execution and delivery by the Company of this Agreement, and the issuance
of the Generex Shares, Antigen Express Shares, and LTIP Shares hereunder, will result in legally binding obligations of the Company,
enforceable against the Company in accordance with the terms and provisions hereof, except to the extent that (a) such enforceability
is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement
of creditors’ rights and (b) the availability of the remedy of specific performance or injunctive or other equitable relief
is subject to the discretion of the court before which any proceeding therefor may be brought.

 

29. Generex, Antigen, and LTIP Shares. The Generex, Antigen, and LTIP Shares, when delivered to the
Veneto Members (and Veneto in the case of the LTIP Shares) in accordance with this Agreement for the consideration expressed herein,
will be validly issued, fully paid, and nonassessable with no personal liability attaching to the ownership thereof and will be
free and clear of all liens.

 

    	 	6	 

     

    

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE MEMBERS

 

As a material inducement for the Company to
enter into this Restructuring Agreement and consummate the transactions contemplated hereby, each Member hereby represents,
warrants and acknowledges to the Company on the date hereof as follows:

 

30. Consent. Each Member, in his capacity as a member of Veneto, hereby consents to the transactions
set forth in this Agreement

 

31. Enforceability. The execution and delivery by the Member of this Agreement will result in legally
binding obligations of the Member, enforceable by and against such Member in accordance with the terms and provisions hereof,
except to the extent that (a) such enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws
relating to or affecting generally the enforcement of creditors’ rights and (b) the availability of the remedy of specific
performance or injunctive or other equitable relief is subject to the discretion of the court before which any proceeding therefor
may be brought.

 

32. Title to Promissory Note. Veneto is the sole record and beneficial owner of the Promissory Note,
free and clear of any Liens, however, the Members shall have a direct right to claim their shares upon completion of this transaction.

 

33. Reliance. Veneto and each Member has relied on publicly available information in making its decisions
regarding acceptance of the Generex Stock acknowledges, and agrees and confirms that (i) except as set forth this Agreement, neither
Generex nor any of its Affiliates, representatives or agents makes, or has made or given, any oral or written representations,
warranties, certifications or opinions of any kind, express or implied, with respect to (A) Generex, any of its Affiliates or
any of its or their business, financial condition, risks or prospects, (B) the Generex or Antigen Shares or (C) any other matters
relating to the Generex, its Affiliates, or the Generex Shares, (ii) in making its decision to accept the Exchange Shares, it
has relied solely on (A) its own independent review, investigation and analysis of the business, financial condition, risks and
prospects of the Company and its Affiliates and (B) the representations and warranties of the Company set forth in Article III
of this Agreement and publicly available information, including Generex’s filings with the Commission.

 

    	 	7	 

     

    

 

ARTICLE VI

CERTAIN COVENANTS

 

34. Confidential Information. Any and all confidential or proprietary information disclosed or made
available by the Generex to each Member in connection with or as a result of the negotiations leading to the execution of this
Restructuring Agreement, or in furtherance thereof, shall remain confidential and the property of the Generex and shall not be
disclosed by such Member and its employees, advisors, and agents, except to the extent that such Party must disclose such information
to comply with applicable law. Each Member agrees not to divulge or disclose or use for its benefit or purposes any information
with respect to the Company unless such information has already become public.

 

35. Further Assurances. Each Party hereto will cooperate with the other Parties hereto and execute
such further instruments and documents as any Party shall reasonably request to carry out the transactions contemplated by this
Agreement.

 

[intentionally left blank]

 

36. Waivers; Amendments. No failure or delay by any Party in exercising any right or power hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any
other right or power. No waiver of any provision of this Restructuring Agreement or consent to any departure by any Party therefrom
shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and then such waiver or consent
shall be effective only in the specific instance and for the purpose for which given. No provision of this Restructuring Agreement
may be waived, amended or otherwise modified except pursuant to an agreement or agreements in writing entered into by all of the
Parties.

 

37. Successors and Assigns. Neither this Restructuring Agreement nor any of the rights, interests
or obligations hereunder may be assigned by any of the Parties, in whole or in part (whether by operation of law or otherwise),
without the prior written consent of the other Parties, and any attempt to make any such assignment without such consent shall
be null and void, except as provided in the Block Trade exception. Subject to the preceding sentence, this Restructuring Agreement
will be binding upon, inure to the benefit of and be enforceable by the Parties and their respective successors and assigns. Nothing
in this Restructuring Agreement, expressed or implied, shall be construed to confer upon any Person (other than the Parties) any
legal or equitable right, remedy or claim under or by reason of this Restructuring Agreement.

 

    	 	8	 

     

    

 

38. Survival. All covenants, agreements, representations and warranties made by the Parties herein
and in the other instruments delivered in connection with or pursuant to this Agreement shall be considered to have been relied
upon by the other Parties and shall survive the execution and delivery of this Restructuring Agreement and the Closing.

 

39. Counterparts; Integration. This Restructuring Agreement may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together
shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Restructuring Agreement by
facsimile shall be effective as delivery of a manually executed counterpart of this Restructuring Agreement. This Restructuring
Agreement constitutes the entire contract among the parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter hereof.

 

40. Severability. Any provision of this Restructuring Agreement held to be invalid, illegal or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular
provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

 

41. Governing Law; Jurisdiction. THIS RESTRUCTURING AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
AND INTERPRETED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF DELAWARE (WITHOUT REGARD TO ANY CONFLICTS OF LAW PROVISION
THAT WOULD REQUIRE THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION).

 

42. Specific Performance. The parties agree that irreparable damage would occur in the event that
any of the provisions of this Restructuring Agreement were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this
Restructuring Agreement and to enforce specifically the terms and provisions of this Restructuring Agreement in the Court of Chancery
of the State of Delaware or, if said Court of Chancery shall lack subject matter jurisdiction, any Federal court of the United
States of America located in the Eastern District of New York this being in addition to any other remedy to which such party is
entitled at law or in equity. In the event that any action is brought in equity to enforce the provisions of this Restructuring
Agreement, no party shall allege, and each party hereby waives the defense or counterclaim, that there is an adequate remedy at
law. Each party further agrees that no other party or any other Person shall be required to obtain, furnish or post any bond or
similar instrument in connection with or as a condition to obtaining any remedy referred to in this Section 20, and each party
irrevocably waives any right it may have to require the obtaining, furnishing or posting of any such bond or similar instrument.

 

    	 	9	 

     

    

 

43. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS
RESTRUCTURING AGREEMENT (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).

 

44. Headings. Article and Section headings used herein are for convenience of reference only, are
not part of this Restructuring Agreement and shall not affect the construction of, or be taken into consideration in interpreting,
this Restructuring Agreement.

 

45. Construction. The Parties have participated jointly in the negotiation and drafting of this Restructuring
Agreement. In the event of ambiguity or question of intent or interpretation arises, this Restructuring Agreement shall be construed
as if drafted jointly by the Parties and no presumption or burden of proof shall arise favoring or disfavoring any Party by virtue
of the authorship of any of the provisions of this Restructuring Agreement. Any reference to any federal, state, local, or foreign
statute or law shall be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires
otherwise. The word “including” shall mean including without limitation.

 

46. No Circumventions. The Parties hereto hereby agree that they will adhere to the spirit of the
terms and conditions contained, which shall be the overriding principal hereof, and shall not cause any third party, employee,
affiliate, or other person to do such acts in their stead to benefit the Parties if they would not be able to do so under the
terms and conditions of this Restructuring Agreement.

 

    	 	10	 

     

    

 

IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto have caused this Restructuring Agreement
to be duly executed and delivered as of the date and year first above written.

 

	 	 	GENEREX BIOTECHNOLOGY CORPORATION
	 	 	 
	 	 	By: /s/ Joseph Moscato
	 	 	Name: Joseph Moscato
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	 	NUGENEREX DISTRIBUTION SOLUTIONS 2, LLC
	 	 	 
	 	 	By: /s/ Joseph Moscato
	 	 	Name: Joseph Moscato
	 	 	Title: President and Chief Executive Officer
	 	 	 
	 	 	VENETO HOLDINGS, L.L.C.
	 	 	 
	 	 	By: /s/ Kevin Kuykendall
	 	 	Name: Kevin Kuykendall
	 	 	Title: Chairman
	 	 	 
	 	 	MEMBERS
	 	 	 
	 	 	/s/ Kevin Kuykendall
	 	 	K&S Biotherapeutics, LLC
	 	 	 
	 	 	/s/ Moky Cheung
	 	 	Radix Resources, LLC
	 	 	 
	 	 	/s/ Kyle Kuykendall
	 	 	WHSH, LLC
	 	 	 
	 	 	/s/ Trenton Moody
	 	 	Performance Biomedical, LLC
	 	 	 
	 	 	/s/ Mark Schneider
	 	 	MCS Interests, LP
	 	 	 
	 	 	/s/ Michael Schneider
	 	 	Shemiyah Holdings, LP
	 	 	 
	 	 	/s/ Kevin Kuykendall
	 	 	Hippocrates Holdings, LLC

 

    	 	11	 

     

    

 

Schedule 1 - Payout Breakout

  

	Purchase Price	 	 	 	 	 	$	21,000,000	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	8,400,000	 	 	$	2.50	 	 	 	 	 	 	 	5,500,000	 
	Members	 	 	% Ownership	 	 	 	GNBT Shares	 	 	 	Dollars	 	 	 	% Owndership pre-LTIC	 	 	 	Antigen Express Shares	 
	MCS Interests, LP	 	 	23.534	%	 	 	1,976,856.00	 	 	$	4,942,140.00	 	 	 	25.40	%	 	 	1,397,000	 
	Shemiyah Holdings, LP	 	 	23.534	%	 	 	1,976,856.00	 	 	$	4,942,140.00	 	 	 	25.40	%	 	 	1,397,000	 
	Performance Biomedical, LLC	 	 	15.992	%	 	 	1,343,328.00	 	 	$	3,58,320.00	 	 	 	17.26	%	 	 	949,300	 
	Radix Resources, LLC	 	 	2.020	%	 	 	169,680.00	 	 	$	424,200.00	 	 	 	2.02	%	 	 	111,100	 
	K&S Biotherapeutics, LLC	 	 	29.660	%	 	 	2,491,440.00	 	 	$	6,228,600.00	 	 	 	29.66	%	 	 	1,631,300	 
	WHSH, LLC	 	 	0.260	%	 	 	21,840.00	 	 	$	54,600.00	 	 	 	0.26	%	 	 	14,300	 
	LTIC	 	 	5.00	%	 	 	420,000.00	 	 	$	1,050,000.00	 	 	 	 	 	 	 	 	 
	TOTAL	 	 	100.00	%	 	 	8,400,000.00	 	 	$	21,000,000.00	 	 	 	100.00	%	 	 	5,500,000	 

 

    	 	12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00294-of-00352.parquet"}]]