Document:

ex_109161.htm

Exhibit 10.2

 

CONSENT AND AMENDMENT AGREEMENT

 

This CONSENT AND AMENDMENT AGREEMENT (this “Amendment”), dated as of March 27, 2018, is entered into by and among AEON GLOBAL HEALTH CORP. (formerly, Authentidate Holding Corp.), a Delaware corporation (the “Company”) and each of the holders of the Prior Senior Notes (as such term is defined below) listed on the signature pages hereto. 

 

WHEREAS, the Company issued $2,545,199 in aggregate principal amount of Senior Secured Convertible Notes due March 20, 2018 (the “Prior Senior Notes”), pursuant to that certain Exchange Agreement, dated as of March 20, 2017, among the Company and the initial holders of such Prior Senior Notes (the “Exchange Agreement”). The terms of such Prior Senior Notes are set forth in the form of Senior Secured Convertible Note attached to the Exchange Agreement;

 

WHEREAS, the Company’s obligations under the Prior Senior Notes are secured by liens on substantially all of its assets pursuant to that certain Amended and Restated Security Agreement, dated as of March 20, 2017, between the Company and the holders of the Prior Senior Notes (the “Security Agreement”);

 

WHEREAS, the Company now wishes to issue a new senior secured convertible note in the aggregate principal amount of $504,452, which new note would be issued on a parity basis with, and on substantially identical terms as, the Prior Senior Notes (the “New Senior Note”) in exchange for the surrender of a promissory note in the aggregate principal amount of $500,000 held by the Chief Executive Officer of the Company, who is also a holder of a Prior Senior Note; and 

 

WHEREAS, the holders of the Prior Senior Notes (the “Senior Holders”) have otherwise agreed to extend the maturity date of the Prior Senior Notes in consideration of certain amendments to the conversion feature of the Prior Senior Notes, as described in greater detail herein; and 

 

WHEREAS, the Company and Senior Holders desire to amend and modify the terms of the Prior Senior Notes and the Security Agreement to permit the issuance of the New Senior Note on the terms set forth herein, and the undersigned Senior Holders have agreed to such amendments, modifications and other provisions set forth herein. 

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

 

SECTION 1.     Definitions. As used herein, terms that are defined herein shall have the meanings as so defined, and terms not so defined shall have the meanings as set forth in the Prior Senior Notes and the Security Agreement, as applicable. 

 

SECTION 2.     Amendments to the Prior Senior Notes. Each of the Prior Senior Notes is hereby amended as follows: 

 

(a)      The definition of the term “Maturity Date” of each Prior Senior Note is hereby amended such that from and after the Effective Date of this Amendment, the term “Maturity Date” shall mean March 20, 2019. 

 

(b)      The definition of the term “Majority in Interest” set forth in Section 1 of each Senior Note, is hereby amended and restated to mean “at any time of determination, fifty-one percent (51%) in interest (based on the then-outstanding aggregate principal amounts of the Prior Senior Notes issued as of March 20, 2017 under the Exchange Agreement and the New Senior Note issued pursuant to the Consent and Amendment Agreement at the time of such determination) of the holders of such Prior Senior Notes and the New Senior Note.

 

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(c)      Section 4(b) of each Prior Senior Note is hereby amended and restated in its entirety to provide as follows: 

 

“Section 4(b) Conversion Price. The conversion price in effect on any Conversion Date shall be equal to $1.20 per share, subject to adjustment herein (the “Conversion Price”).” 

 

(d)      All references in each Prior Senior Note to “Authentidate” or “Authentidate Holding Corp.” are hereby deleted and replaced with “AEON” or “Aeon Global Health Corp.”, as the case may be.

 

SECTION 3.   Acknowledgement and Consent. 

 

(a)      The Senior Holders hereby acknowledge and consent (i) to the sale and issuance by the Company of the New Senior Note ; (ii) to the Company entering into, executing and delivering the New Senior Note and the Amended Security Agreement (as defined below); and (iii) to the grant by the Company, pursuant to the Amended Security Agreement, of the security interest in the Collateral (as defined in the Amended Security Agreement) to the holder of the New Senior Note. The Senior Holders further agree that the New Senior Note shall constitute “Permitted Indebtedness”, as defined in the Security Agreement, and that the liens granted to the holder of the New Senior Note under the Amended Security Agreement shall constitute “Permitted Liens”, as defined in the Security Agreement. 

 

(b)     In addition, the Senior Holders further acknowledge and agree in all respects that (i) the New Senior Note shall, upon issuance, be pari passu with the Prior Senior Notes with regard to priority of payment and in all other respects pertaining to their respective interests under the such instruments; and (ii) regardless of the relative times of attachment or perfection thereof, the security interests granted to the Senior Holders under the Security Agreement shall in all respects be pari passu security interests on parity with the security interests granted or to be granted in the Collateral to the holder of the New Senior Note pursuant to the Amended Security Agreement. Such Senior Holders confirm and agree that the priorities specified herein are applicable irrespective of the time, order or method of attachment or perfection of security interests or the time or order of filing of financing statements and each agrees not to seek to challenge, to avoid, to subordinate or to contest or directly or indirectly to support any other person in challenging, avoiding, subordinating or contesting in any judicial or other proceeding, including, without limitation, any proceeding involving the Company, the priority, validity, extent, perfection or enforceability of any lien held by the holders of the New Senior Notes in all or any part of the Collateral.

 

SECTION 4.     Amendments to the Security Agreement. In order to ensure that the liens granted to the holder of the New Senior Note is on parity with the liens granted to secure the obligations arising under the Prior Senior Notes, the Senior Holders hereby agree and covenant to execute and deliver to the Company an amendment to the Security Agreement in the form annexed hereto as Exhibit A (the “Amended Security Agreement”). 

 

SECTION 5.      Effect of Amendment. This Amendment shall become effective on the date on which (the “Effective Date”) the following conditions have occurred: (a) the Company and the Senior Holders have executed and delivered counterparts of this Amendment and the Security Agreement Amendment, and (b) the closing of the transactions contemplated under the new exchange agreement between the Company and the holder of the New Senior Note shall have occurred. Upon the Effective Date, (i) the applicable portions of this Amendment shall be a part of each Prior Senior Note and the Security Agreement, as the case may be, each as amended hereby, and (ii) each reference in any such document to “this Note”, “this Agreement”, “hereof”, “hereunder”, or words of like import, and each reference in any other document or agreement to any of the Prior Senior Notes or the Security Agreement shall mean and be a reference to the Prior Senior Notes or the Security Agreement, as the case may be, as amended hereby. Except as expressly amended hereby, each of the Prior Senior Notes (including the Reserved Senior Note) and the Security Agreements amended herein shall remain in full force and effect and are hereby ratified and confirmed by the parties hereto. 

 

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SECTION 6.      Consent. Each of the Senior Holders executing this Amendment hereby consents to the terms of the amendments to the Prior Senior Notes and Security Agreement contained in this Amendment. 

 

SECTION 7.      Representations and Warranties. Each of the parties hereto represents and warrants that it is duly incorporated or otherwise organized, validly existing and (to the extent applicable) in good standing under the laws of the jurisdiction of its formation, that it has all requisite power and authority to enter into this Amendment and that this Amendment has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding obligation. Each of the Senior Holders further represent and warrant that: (i) it is the beneficial or record owner of the Prior Senior Note originally issued to it, free and clear of any and all pledges, liens, security interests, mortgage, claims, charges, restrictions, options, title defects or encumbrances; (ii) such Senior Holder has neither assigned, pledged or transferred in any manner, any interest in either the Prior Senior Note originally issued or the Security Agreement; and (iii) it is an “accredited investor” as that term is defined in Regulation D promulgated under the Securities Act of 1933. Each Senior Holder agrees that this Amendment shall be affixed by each Holder to its Prior Senior Note and become a part thereof.

 

SECTION 8.      Governing Law; Miscellaneous. 

 

(a)       This Amendment shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to principles of conflicts of law.

 

(b)       Headings used herein are for convenience of reference only and shall not affect the meaning of this Amendment. This Amendment may be executed in any number of counterparts, and by the parties hereto on separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same agreement. Executed counterparts may be delivered via facsimile or other means of electronic transmission. 

 

(c)       This Amendment contains the entire agreement and understanding of the parties with respect to its subject matter and supersedes all prior arrangements and understandings between the parties, either written or oral, with respect to its subject matter. This Amendment may not be amended or any provision hereof waived in whole or in part, except by a written amendment signed by all of the parties hereto. The observance of any term of this Amendment may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument signed by the party against whom enforcement of any such waiver is sought. The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect the rights at a later time to enforce the same. No waivers of or exceptions to any term, condition, or provision of this Amendment, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition, or provision. This Amendment shall be binding upon and shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. 

 

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(d)      Each Senior Holder expressly represents and warrants that (a) before executing this Amendment, such Senior Holder has fully informed himself or itself of the terms, contents, conditions and effects of this Amendment; (b) such Senior Holder has had the opportunity to seek the advice of his or its own counsel and advisors before executing this Amendment; (c) this Amendment is the result of arm’s length negotiations conducted by and among the parties; and (d) such Senior Holder acknowledges that the law firm of Becker & Poliakoff, LLP has been retained by the Company to prepare this Amendment as legal counsel for the Company, that Becker & Poliakoff, LLP does not represent any Senior Holder in connection with the preparation or execution of this Amendment, that such firm has not given any legal, investment or tax advice to any Senior Holder regarding this Amendment and that such Senior Holder has not relied upon any legal advice except as provided by its own attorneys. Becker & Poliakoff, LLP is expressly intended as a beneficiary of the representations and warranties of the Senior Holder contained in this paragraph.

 

 

[Signature Page Follows]

 

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

 

	
			 

				
			AEON GLOBAL HEALTH CORP.

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	 	 	 	 
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			 /s/ Michael J. Poelking   

				
			 

			
	
			 

				
			Name: Michael J. Poelking 

				
			 

			
	 	Title: Chief Financial Officer	 

 

 

ACCEPTED AND AGREED:

 

MKA 79, LLC

 

 

By:     /s/ J. David Luce

Name:     J. David Luce

Title:     Manager

Principal Amount of Senior Note: $641,294

 

VER 83, LLC

 

 

By:     /s/ Douglas B. Luce

Name:     Douglas B. Luce     

Title:     Manager

Principal Amount of Senior Note: $1,056,875 

 

OPTIMUM VENTURES, LLC

 

 

By:      /s/ Shawn Desai               

Name: Shawn Desai

Title: Member

Principal Amount of Senior Note: $591,613 

 

HANIF A. ROSHAN

 

 

By:         /s/ Hanif A. Roshan      

Name:     Hanif A. Roshan

Principal Amount of Senior Note: $255,417

 

 

 

 

 

Signature Page to Consent and Amendment Agreement

 

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EXHIBIT A

 

FORM OF AMENDED SECURITY AGREEMENT

 

 

6ex_109162.htm

Exhibit 10.3

 

AMENDMENT NO. 1 TO AMENDED AND RESTATED SECURITY AGREEMENT

 

THIS AMENDMENT NO. 1 to the AMENDED AND RESTATED SECURITY AGREEMENT AMENDMENT (this “Agreement”) is made and entered into as of March 27, 2018 by Aeon Global Health Corp. (formerly, Authentidate Holding Corp.), a Delaware corporation (the “Company”) and each of the holders of the secured notes listed on the signature pages hereto (such persons, the “Secured Parties”). 

 

W I T N E S S E T H:

 

WHEREAS, the Company entered into that certain Amended and Restated Security Agreement with the Secured Parties of an aggregate principal amount of $2,545,199 of Senior Secured Convertible Notes due March 20, 2018 (the “Prior Senior Notes”), dated as of March 20, 2017 (the “Original Security Agreement”);

 

WHEREAS, Mr. Hanif A. Roshan (“Roshan”) has previously provided funds to the Company pursuant to the terms of a Promissory Note dated as of January 23, 2018 in the original principal amount of $500,000 (the “Second Roshan Note”), which funds were provided without the benefit of any security interest in assets of the Company;

 

WHEREAS, the Company has requested that Roshan surrender the Second Roshan Note in exchange for a new promissory note reflecting all outstanding principal and accrued interest under the Second Roshan Note and to provide for a new maturity date (the “New Roshan Note”);

 

WHEREAS, ROSHAN has agreed to accept the terms of the proposed exchange and enter into a Note Exchange Agreement of even date herewith provided that payment of principal and interest under the New Roshan Note is issued on the same terms as, and on parity with, the Prior Senior Notes, and the Secured Parties have has agreed to enter into this Agreement to allow for the obligations due to Roshan pursuant to such new note to become secured under the Original Security Agreement, as amended by this Agreement. 

 

NOW, THEREFORE, in consideration of the foregoing, the covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Secured Parties and the Company hereby agree as follows.

 

1.           Certain Definitions. 

 

1.1         Capitalized terms not otherwise defined herein shall have the meaning ascribed to such terms in the Original Security Agreement. 

 

1.2         The Original Security Agreement is hereby amended to replace the definitions of the following terms set forth in the Original Security Agreement with the following definitions:

 

(a)    “Majority in Interest” shall mean the holders of fifty-one percent (51%) or more of the then outstanding aggregate principal amount of the Prior Senior Notes and New Roshan Note, at the time of such determination.

 

(b)     “Secured Notes” means the Prior Senior Notes and the New Roshan Note, as may be amended from time to time.

 

(c)     “Secured Parties” means the holders of the Secured Notes, at the time of such determination.           

 

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(d)      All references in the Original Security Agreement, including the annexes, exhibits and schedules thereto, to “Authentidate” or “Authentidate Holding Corp.” are hereby deleted and replaced with “AEON” or “Aeon Global Health Corp.”, as the case may be.

 

2.            Amendment and Restatement of Section II of the Original Security Agreement.

 

(a)          Section 2.1 of the Original Security Agreement is hereby amended and restated to read as follows:

 

2.1     Grant and Description. In order to secure the full and complete payment and performance of the Obligations when due, including the New Roshan Note, the Company hereby grants to the Secured Parties, subject to the Permitted Liens, a first priority security interest in all of the Company’s rights, titles, and interests in and to the Collateral (the “Security Interest”) and subject to the Permitted Liens, pledges, collaterally transfers, and assigns the Collateral to the Secured Parties, all upon and subject to the terms and conditions of this Security Agreement; provided, however, that each Secured Party shall subordinate from time to time upon the Company’s request its Security Interests granted in such Collateral to any Lien(s) granted by the Company or any of its Subsidiaries to third parties which constitutes Permitted Liens contemplated within clauses (h) through (k) of the definition of Permitted Liens. If the grant, pledge, or collateral transfer or assignment of any specific item of the Collateral is expressly prohibited by any contract or by law, then the Security Interest created hereby nonetheless remains effective to the extent allowed by such contract, the UCC or other applicable laws, but is otherwise limited by that prohibition. The Security Interest granted herein shall terminate in accordance with Section 7.1 hereof.

 

(b)          Section 2.2 of the Original Security Agreement is hereby amended and restated to read as follows:

 

2.2     Financing Statements; Further Assurances. 

 

(a)    The Secured Parties shall be named as the sole secured parties on any and all financing statements and security agreements filed pursuant to this Security Agreement for the ratable benefit of all of the Secured Parties, and agree that the Majority in Interest of the Secured Parties are authorized to file any and all terminations of such financing statements at such time or times as it determines is appropriate pursuant to the Security Agreement.

 

(b)    As soon as practicable following the execution and delivery of this Security Agreement and upon the authorization of the Majority in Interest of the Secured Parties, the Company shall:

 

(i)    file with the State of Delaware and any other offices that the Majority in Interest of the Secured Parties may reasonably request in writing an amended financing statement that (x) indicates the Collateral in a manner consistent with the definition of the term “Collateral” as contained in this Security Agreement, (y) contains any other information required by Article 9 of the UCC of the state or such jurisdiction for the sufficiency or filing office acceptance of any financing statement or amendment, including whether the Company is an organization, the type of organization, and any organization identification number issued to the Company, and (z) reflects Roshan as an additional secured party in order to secure the obligations arising under the New Roshan Note;

 

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(ii)   if necessary to perfect the Security Interest granted in the Collateral hereunder, file with the U.S. Patent and Trademark Office, such amended financing statements and/or patent security agreements in the form necessary to record the Liens granted hereunder to the Secured Parties on the Company’s patents and patent applications; and

  

(iii)    upon the reasonable request of the Majority in Interest of the Secured Parties, file such additional financing statements and other documents, including amendments to the financing statements, in order to maintain the Liens in the Collateral.

 

(c)     Until the Obligations are paid and performed in full, the Company covenants and agrees that it will, at its own expense and upon the request of the Majority in Interest, but in all cases subject to the rights of the grantees of the Permitted Liens: (i) after an Event of Default, file or cause to be filed such applications and take such other actions as the Majority in Interest may reasonably request to obtain the consent or approval of any governmental authority to the rights of the Secured Parties hereunder, including, without limitation, the right to sell all the Collateral upon an Event of Default without additional consent or approval from such governmental authority; (ii) from time to time, either before or after an Event of Default, promptly execute and deliver to the Secured Parties all such other assignments, certificates, supplemental documents, and financing statements, and do all other acts or things as the Majority in Interest may reasonably request in order to more fully create, evidence, perfect, continue, and preserve the priority of the Security Interest and to carry out the provisions of this Security Agreement; and (iii) either before or after an Event of Default, pay all filing fees in connection with any financing, continuation, or termination statement or other instrument with respect to the Security Interest.

 

3.           Inclusion of Roshan as Secured Party.

 

Each of the Secured Parties and the Company hereby acknowledge, consent and agree that for purposes of the Original Security Agreement, as amended by this Agreement, (i) Roshan shall be deemed a Secured Party; (ii) the term Obligations includes all obligations under the New Roshan Note on a pari passu basis to the Prior Senior Notes; and (iii) Roshan shall be entitled to all rights as a Secured Party under the Original Security Agreement, as amended by this Agreement, for the purposes of enforcing his rights under the New Roshan Note, as if such New Roshan Note was within the definition of the term “Secured Notes” as set forth in the Original Security Agreement. 

 

4.          Entire Agreement; Continuing Validity of Original Security Agreement. Except as amended under this Agreement, the Original Security agreement shall remain in full force and effect. Upon the execution of this Agreement by the Company and the Secured Parties, (i) the applicable portions of this Agreement shall be a part of the Original Security Agreement, each as amended hereby, and (ii) each reference in the Original Security Agreement to “this Agreement”, “hereof”, “hereunder”, or words of like import, and each reference in any other document or agreement to the Original Security Agreement shall mean and be a reference to the Original Security Agreement, as amended hereby. 

 

5.            Governing Law. This Agreement shall be governed by and construed under the laws of the State of Delaware, without reference to principles of conflicts of law.

 

6.            Headings. The headings used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement. 

 

7.          Multiple Counterparts. This Agreement has been executed in a number of identical counterparts, each of which shall be deemed an original for all purposes and all of which constitute, collectively, one agreement; but, in making proof of this Agreement, it shall not be necessary to produce or account for more than one such counterpart. Executed counterparts may be delivered via facsimile or other means of electronic transmission.

 

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8.          Entire Agreement; Amendments and Waivers. This Agreement contains the entire agreement and understanding of the parties with respect to its subject matter and supersedes all prior arrangements and understandings between the parties, either written or oral, with respect to its subject matter. This Agreement may not be amended or any provision hereof waived in whole or in part, except by a written amendment signed by all of the parties hereto. The observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) only by a written instrument signed by the party against whom enforcement of any such waiver is sought. The failure of any party at any time or times to require performance of any provision hereof shall in no manner affect the rights at a later time to enforce the same. No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or continuing waiver of any such term, condition, or provision. This Agreement shall be binding upon and shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. 

 

9.           Separate Counsel. Each of the Secured Parties expressly represents and warrants that (a) before executing this Agreement, such Secured Party has fully informed himself or itself of the terms, contents, conditions and effects of this Agreement; (b) such Secured Party has had the opportunity to seek the advice of his or its own counsel and advisors before executing this Agreement; (c) this Agreement is the result of arm’s length negotiations conducted by and among the parties; and (d) such Secured Party acknowledges that the law firm of Becker & Poliakoff, LLP has been retained by the Company to prepare this Agreement as legal counsel for the Company, that Becker & Poliakoff, LLP does not represent any Secured Party in connection with the preparation or execution of this Agreement, that such firm has not given any legal, investment or tax advice to any of the Secured Parties regarding this Agreement and that such Secured Party has not relied upon any legal advice except as provided by its own attorneys. Becker & Poliakoff, LLP is expressly intended as a beneficiary of the representations and warranties of the Secured Parties contained in this paragraph. 

 

 

 

Remainder of page intentionally left blank. Signature pages follow.

 

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AMENDMENT NO. 1 to AMENDED AND RESTATED SECURITY AGREEMENT

 

IN WITNESS WHEREOF, the Company and the Secured Parties have duly executed this Agreement as of the date first written above.

 

	 	
			AEON GLOBAL HEALTH CORP.

			
	 	 
	 	 
	 	
			By:

				
			 /s/ Michael J. Poelking                                                        

			
	 	 	
			Name:

				
			Michael J. Poelking

			
	 	 	
			Title:

				
			Chief Financial Officer

			
	 	 	 	 
	 	
			Address for Notice:

			
	 	 
	 	
			2225 Centennial Drive

			Gainesville, GA 30504

			Attn: Chief Financial Officer

			

 

	SECURED PARTIES:	 
	 	 
	VER 83 LLC 	MKA 79 LLC
	 	 
	 	 
	By:    /s/ Douglas B. Luce    	By:_/s/ J. David Luce
	Name:   Douglas B. Luce	Name: J. David Luce
	Title:     Manager 	Title: Manager
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	Principal Amount of Prior Senior Note: $1,056,875	Principal Amount of Prior Senior Note: $641,294
	 	 
	OPTIMUM VENTURES, LLC	HANIF A. ROSHAN
	 	 
	 	 
	By: /s/ Shawn Desai 	By: /s/ Hanif A. Roshan
	Name:  Shawn Desai 	 
	Title:  Member	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	
			Principal Amount of Prior Senior Note: $591,613 

				Principal Amount of Prior Senior Note: $255,417 
	 	Principal Amount of New Roshan Note: $504,452

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