Document:

ex_41.htm

Exhibit 4.1

 

SECURITIES PURCHASE AND EXCHANGE AGREEMENT

 

This Securities Purchase and Exchange Agreement (this “Agreement”) is dated as of December __, 2014, between Pressure BioSciences, Inc., a Massachusetts corporation (the “Company”), and Clayton A. Struve (the “Purchaser”).

 

WHEREAS, the Company has determined that it is in its best interests to issue shares of a newly created series of Preferred Stock (as defined below) to the Purchaser in exchange for Shares of Common Stock (as defined below) held by the Purchaser, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule 506 promulgated thereunder; and

 

WHEREAS, the Purchaser desires to acquire Shares of Preferred Stock (as defined below) in exchange for Shares of Common Stock held by the Purchaser, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act and Rule 506 promulgated thereunder.

 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and the Purchaser agree as follows:

 

	   ARTICLE I.   
	 DEFINITIONS

 

1.1 Definitions.  In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings set forth in this Section 1.1:

 

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 144 under the Securities Act.

 

“Articles of Amendment” means the Articles of Amendment to the Company’s Restated Articles of Organization, as amended, in the form of Exhibit A attached hereto, that includes a Certificate of Designation setting forth the rights, preferences, powers, privileges, restrictions, qualifications and limitations of the Preferred Stock.

 

“Business Day” means any day except Saturday, Sunday, any day which shall be a federal legal holiday in the United States, or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

“Closing” means the closing of the sale and issuance of the Shares of Preferred Stock in exchange for the Shares of Common Stock pursuant to Section 2.1.

 

“Closing Date” means the date on which the Company closes the sale and issuance of the Shares of Preferred Stock in exchange for the Shares of Common Stock.

 

 

  

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 “Common Stock” means the common stock of the Company, par value $.01 per share, and any other class of securities into which such securities may hereafter be reclassified or changed into.

 

 “Conversion Shares” means such shares of Common Stock which, from time to time, have been issued, or may be issuable, upon conversion of the Preferred Stock.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Liens” means a lien, liability, charge, security interest, encumbrance, pledge, right of first refusal, preemptive right or other restriction of any kind, nature or description.

 

“Material Adverse Effect” shall have the meaning assigned to such term in Section 3.1(a).

 

 “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof), or other entity of any kind.

 

“Preferred Stock” means the Series H Convertible Preferred Stock of the Company, $.01 par value, issued or issuable to the Purchaser pursuant to this Agreement with such rights, preferences, powers, privileges, restrictions, qualifications and limitations as are set forth in the Certificate of Designation included in the Articles of Amendment.

 

“Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

 

 “Required Approvals” shall have the meaning ascribed to such term in Section 3.1(d).

 

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such rule.

 

“SEC Reports” shall have the meaning ascribed to such term in Section 3.1(f).

 

 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Shares of Common Stock” shall have the meaning ascribed to such term in Section 2.2(a).

 

“Shares of Preferred Stock” shall have the meaning ascribed to such term in Section 2.2(a).

 

 

  

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	 ARTICLE II. 
	
PURCHASE AND SALE

 

2.1 Articles of Amendment.  On or before the Closing, the Company shall adopt and file with the Secretary of the Commonwealth of Massachusetts the Articles of Amendment.

 

2.2 Purchase, Exchange and Sale.

 

(a) Effective upon the Closing and subject to the terms and conditions set forth herein, (i) the Company hereby sells and issues to the Purchaser twenty one (21) shares of Preferred Stock (the “Shares of Preferred Stock”), and (ii) the Purchaser hereby sells, assigns, transfers and delivers to the Company all of the Purchaser’s right, title and interest in and to Two Million One hundred Thousand (2,100,000) shares of Common Stock (the “Shares of Common Stock”), free and clear of all Liens, in exchange for the Shares of Preferred Stock.

 

(b) The Closing of the sale and issuance of the Shares of Preferred Stock in exchange for the Shares of Common Stock shall take place on December 24, 2014, at the offices of the Company, remotely via the exchange of documents and signatures, or on such other date or at such other location or by such other means as the parties shall mutually agree.

 

2.3 Closing Deliveries.

 

(a) On or prior to the Closing (except as otherwise required below), the Company shall deliver or cause to be delivered to the Purchaser a certificate or certificates registered in the name of the Purchaser representing the Shares of Preferred Stock.

 

(b) On or prior to the Closing, the Purchaser shall deliver or cause to be delivered to the Company (i) a certificate or certificates representing the Shares of Common Stock, duly endorsed in blank or accompanied by duly executed stock powers, and (ii) an IRS Form W-9 completed with respect to the Purchaser in accordance with the instructions accompanying such form.

 

2.4 Closing Conditions.

 

(a) The obligations of the Company hereunder in connection with the sale and issuance of the Shares of Preferred Stock to the Purchaser at the Closing are subject to the following conditions being met:

 

(i) the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Purchaser contained herein;

 

(ii) all obligations, covenants and agreements of the Purchaser required to be performed at or prior to the Closing Date shall have been performed; and

 

(iii) the delivery by the Purchaser of the items set forth in Section 2.3(b) of this Agreement.

 

 

  

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(b) The obligations of the Purchaser hereunder in connection with the Closing are subject to the following conditions being met:

 

(i) the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Company contained herein (except that the representations and warranties of the Company contained herein that are qualified by materiality or Material Adverse Effect shall be true and correct in all respects when made and on the Closing Date);

 

(ii) all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed; and

 

(iii) the delivery by the Company of the items set forth in Section 2.3(a) of this Agreement.

 

ARTICLE III.  REPRESENTATIONS AND WARRANTIES

 

3.1 Representations and Warranties of the Company.  The Company hereby makes the following representations and warranties to the Purchaser:

 

(a) Organization and Qualification.  The Company is a corporation duly incorporated, validly existing and in good standing under the laws of The Commonwealth of Massachusetts, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted.  The Company is not in violation or default of any of the provisions of its Restated Articles of Organization, as amended,  and bylaws.  The Company is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not, individually or in the aggregate, have or reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of this Agreement, (ii) a material adverse effect on the results of operations, assets, business or condition (financial or otherwise) of the Company, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under this Agreement (any of (i), (ii) or (iii), a “Material Adverse Effect”).

 

(b) Authorization; Enforcement.  The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder.  The execution and delivery of each of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary corporate action on the part of the Company and no further action is required by the Company, its board of directors or its stockholders in connection therewith other than the Required Approvals.  This Agreement has been duly executed and delivered by the Company and constitutes the valid and binding obligation of the Company enforceable against the Company in accordance with its terms except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

 

  

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(c) No Conflicts.  The execution, delivery, and performance of this Agreement by the Company and the sale and issuance of the Shares of Preferred Stock do not and will not (i) conflict with or violate any provision of the Company’s Restated Articles of Organization, as amended,  or bylaws, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company debt or otherwise) or other understanding to which the Company is a party or by which any property or asset of the Company is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company is bound or affected, except in the case of each of clauses (ii) and (iii), such as would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect.

 

(d) Filings, Consents and Approvals.  The Company is not required to obtain any consent, waiver, authorization, or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery, and performance by the Company of this Agreement, other than (i) the filing of the Articles of Amendment with, and the acceptance of such filing by, the Secretary of the Commonwealth of Massachusetts, (ii) if determined necessary by the Company, the filing of Form D with the Commission and such filings, if any, as are required to be made under applicable state securities laws and (iii) any approvals required under the Company’s Restated Articles of Organization, as amended, as determined by the Company (collectively, the “Required Approvals”).

 

(e) Issuance of Shares of Preferred Stock.  The Shares of Preferred Stock are duly authorized and, when issued and paid for in accordance with this Agreement, will be duly and validly issued, fully paid and non-assessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in this Agreement, applicable federal and state securities laws and Liens created by or imposed by the Purchaser.  The Conversion Shares have been duly reserved for issuance, and upon issuance in accordance with the terms of the Company’s Restated Articles of Organization, as amended,  will be validly issued, fully paid and non-assessable and free of restrictions on transfer other than restrictions on transfer under this Agreement, applicable federal and state securities laws and Liens created by or imposed by a Purchaser.

 

(f) SEC Reports; Financial Statements.  The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.  As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

 

  

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(g) Exchange Act Registration.  The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration.

 

(h) Private Placement. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Shares of Preferred Stock by the Company to the Purchaser as contemplated hereby.

 

3.2 Representations and Warranties of the Purchaser.  The Purchaser hereby represents and warrants as follows:

 

(a) Organization; Authority.  The Purchaser has full legal capacity to execute and deliver this Agreement and the certificate or certificates representing the Shares of Common Stock and to consummate the transactions contemplated by this Agreement and otherwise to carry out his obligations hereunder.  This Agreement has been, and the certificate or certificates representing the Shares of Common Stock will be, duly executed by the Purchaser, and when delivered by the Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of the Purchaser, enforceable against the Purchaser in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b) Own Account.  The Purchaser understands that the Shares of Preferred Stock are “restricted securities” and have not been registered under the Securities Act or any applicable state or other securities law and is acquiring the Shares of Preferred Stock as principal for his own account and not with a view to or for distributing or reselling such Shares of Preferred Stock or any part thereof in violation of the Securities Act or any applicable state or other securities law, has no present intention of distributing any of such Shares of Preferred Stock in violation of the Securities Act or any applicable state or other securities law, and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Shares of Preferred Stock (this representation and warranty not limiting the  Purchaser’s right to sell the Shares of Preferred Stock or the Conversion Shares in compliance with the Securities Act and any applicable state or other securities laws) in violation of the Securities Act or any applicable state or other securities law.

 

(c) Purchaser Status.  At the time the Purchaser was offered the Shares of Preferred Stock, the Purchaser was, on the date hereof he is, and on the Closing Date he will be, an “accredited investor” as defined in Rule 501(a) under the Securities Act.

 

(d) Experience of Such Purchaser.  The Purchaser has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Shares of Preferred Stock, and has so evaluated the merits and risks of such investment.  The Purchaser understands that the purchase of the Shares of Preferred Stock involves substantial risk.  The Purchaser is able to bear the economic risk of an investment in the Shares of Preferred Stock and, at the present time, is able to afford a complete loss of such investment.

 

(e) General Solicitation.  The Purchaser is not purchasing the Shares of Preferred Stock as a result of any advertisement, article, notice or other communication regarding the Shares of Preferred Stock published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement.

 

(f) Provision of Information. The Purchaser has been afforded (i) the opportunity to ask such questions as he has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the Shares of Preferred Stock, the Shares of Common Stock and the finances, operations and business of the Company; and (ii) the opportunity to request such additional information which the Company possesses or can acquire without unreasonable effort or expense.  All of the Purchaser’s questions have been answered to his satisfaction and such Purchaser has received all of such requested additional information.

 

 

  

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(g) Certain Fees.  No brokerage or finder’s fees or commissions are or will be payable by the Purchaser to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank, or other Person with respect to the transactions contemplated by this Agreement.

 

(h) Residency.  The residence or principal place of business of the Purchaser is set forth below the Purchaser’s signature on the signature page to this Agreement, and all communications between the Purchaser and the Company regarding the transactions contemplated by this Agreement took place within or from the state of such residence or principal place of business.

 

(i) Ownership of Shares of Common Stock.  The Purchaser is the sole record and beneficial owner of the Shares of Common Stock and has good and marketable title thereto, free and clear of any and all Liens.  Upon consummation of the Closing, the Company shall have acquired good and marketable title to the Shares of Common Stock, free and clear of any and all Liens.

 

(j) Acknowledgement.  Such Purchaser acknowledges that the Company has relied upon the representations and warranties of the Purchaser set forth in this Section 3.2 in its determination that no registration under the Securities Act is required for the sale and issuance of the Shares of Preferred Stock by the Company to the Purchaser as contemplated by this Agreement.

 

 

	 ARTICLE IV.  
	
OTHER AGREEMENTS OF THE PARTIES

 

       4.1 Transfer Restrictions.

 

(a) The Shares of Preferred Stock and the Conversion Shares may only be disposed of in compliance with state and federal securities laws.  In connection with any transfer of the Shares of Preferred Stock and the Conversion Shares other than pursuant to an effective registration statement under the Securities Act or Rule 144, or to the Company, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred securities under the Securities Act.  As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement.

 

(b) Certificates evidencing the Shares of Preferred Stock and the Conversion Shares will contain the following legend or such other legend as may be reasonably appropriate under the Securities Act so long as is required by this Section 4.1:

 

THE OFFER AND SALE OF THIS SECURITY HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, SUCH SECURITY MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

If the Purchaser or other holder of the Shares of Preferred Stock or the Conversion Shares is not an Affiliate of the Company, certificates evidencing the Shares of Preferred Stock or the Conversion Shares shall not contain any legend (including the legend set forth in Section 4.1(b), (i) while a registration statement covering the resale of such security is effective under the Securities Act, (ii) following any sale of such securities pursuant to Rule 144, (iii) if such securities are eligible for sale under Rule 144 without limitations, or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Securities Exchange Commission).  The Company agrees that at such time as such legend is no longer required with respect to such securities under this Section 4.1(b), promptly following the delivery by the  Purchaser to the Company or its transfer agent of a certificate representing such securities, it will deliver or cause to be delivered to the Purchaser a certificate representing such securities that is free from all restrictive and other legends.

4.2 Reservation of Common Stock. The Company has reserved and the Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue the Conversion Shares pursuant to the conversion of the Shares of Preferred Stock.

 

 

  

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	 ARTICLE V.  
	
MISCELLANEOUS

 

 

5.1 Fees and Expenses.  Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.

 

5.2 Entire Agreement.  This Agreement contains the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.3 Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile or e-mail at the facsimile number or e-mail address set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile or e-mail at the facsimile number or e-mail address set forth on the signature pages attached hereto on a day that is not a Business Day or later than 5:30 p.m. (New York City time) on any Business Day, (c) the second Business Day following the date of mailing, if sent by internationally recognized overnight courier service for next business day delivery, or (d) upon actual receipt by the party to whom such notice is required to be given.  The address for such notices and communications shall be as set forth on the signature pages attached hereto.

 

5.4 Amendments; Waivers.  No provision of this Agreement may be waived, amended, modified or terminated except in a written instrument signed, by the Company and by the Purchaser.  No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

 

5.5 Headings.  The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

 

5.6 Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  The Purchaser may not assign any or all of his rights under this Agreement to any Person without the prior written consent of the Company.

 

5.7 No Third Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

5.8 Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of The Commonwealth of Massachusetts, without regard to the principles of conflicts of law thereof.  Each party agrees that all Proceedings concerning the interpretations, enforcement, and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees, or agents) shall be commenced exclusively in the state and federal courts sitting in The Commonwealth of Massachusetts.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of Boston for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of this Agreement), and hereby irrevocably waives, and agrees not to assert in any Proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such Proceeding is improper or is an inconvenient venue for such Proceeding.  The parties hereby waive all rights to a trial by jury.

 

5.9 Execution.  This Agreement may be executed in two counterparts, each of which when taken together shall be considered one and the same agreement, and shall become effective against the Company and the Purchaser when counterparts have been signed by the Company and the Purchaser and delivered to each other, it being understood that the Company and the Purchaser need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

5.10 Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

5.11 Construction. The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise this Agreement and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement or any amendments hereto.

 

 

  

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           IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase and Exchange Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	
Pressure BioSciences Inc.

 

 

	
Address for Notice:

	
By:__________________________________________

     Name:  Richard T. Schumacher

     Title:  President and Chief Executive Officer

 

	
14 Norfolk Avenue

Easton, MA  02375

Facsimile:  (508) 580-1829

E-Mail:  rschumacher@pressurebiosciences.com

Attention:  Richard T. Schumacher

	  	  
	
Purchaser:

 

 

	
Address for Notice:

	
__________________________________________

     Name:  Clayton A. Struve

 

 

	
[_____________________]

[_____________________]

Facsimile:

E-Mail:

 

 

Taxpayer Identification Number:  ___________________________________________

 

 

  

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EXHIBIT A

Articles of AmendmentExhibit 10.1

                                SERVICE AGREEMENT

THIS AGREEMENT made this 3rd day of December 2014 (the "Effective Date").

BETWEEN:

          First American Silver Corporation, a Nevada company (the "Company")

AND:

          Mark  Radom,  an  individual  residing  in Bet  Shemesh,  Israel  (the
          "Executive")

A. The Company has offered the Executive to serve as chief executive officer and
director of the Company.

B.  The  Company  and the  Executive  wish to  formally  record  the  terms  and
conditions  upon which the  Executive  will be hired by and serve as director of
the Company

C. Each of the Company and the Executive has agreed to the terms and  conditions
set forth in this Agreement, as evidenced by their respective execution hereof.

NOW THEREFORE THIS AGREEMENT  WITNESSES that, in  consideration  of the premises
and the mutual  covenants and agreements  herein  contained,  the parties hereto
covenant and agree as follows:

                                    ARTICLE 1
                              CONTRACT FOR SERVICES

1.1  Engagement the Executive as Chief Executive Officer. (a) The Company hereby
     agrees to hire the Executive as Chief Executive  Officer in accordance with
     the terms and provisions hereof.

          (i)  Term. Unless terminated earlier in accordance with the provisions
               hereof,  this  Agreement  will  commence on the date of execution
               hereof (the  "COMMENCEMENT  DATE") and will continue for a period
               of Three (3) years from the Commencement Date (the "Term").

     (b)  Service.  The Executive agrees to faithfully,  honestly and diligently
          serve the Company and to devote the time, attention efforts to further
          the business and interests of the Company and utilize his professional
          skills and care during the Term.

                                       1
<PAGE>
1.2  Duties: The Executive's services hereunder will be provided on the basis of
     the following terms and conditions:

     (a)  Reporting  directly  to the Board of  Directors  of the  Company,  the
          Executive will serve as the Chief Executive Officer of the Company;

     (b)  The Executive will be responsible for setting and managing the overall
          corporate  direction  for  the  Company,  including  establishing  and
          maintaining  budgets for the Company and ensuring that the Company has
          adequate capital for its operations,  marketing and general  corporate
          activities,  all  subject to any  applicable  law and to  instructions
          provided by the Board of Directors of the Company from time to time;

          The Executive  will plan and direct the  organization's  activities to
          achieve  stated/agreed targets and standards for financial and trading
          performance,  quality,  culture  and  legislative  adherence.  He will
          recruit,   select  and  develop  executive  team  members  and  direct
          functions and performance via the executive team.

          As a US  securities  attorney by  training,  the  Executive  agrees to
          perform  all  legal  work  for  the  Company  within  his  competence,
          including,  but not limited  to,  required  reports and filings  under
          applicable US federal law.

     (c)  The Executive will play a leading role in fundraising activities.

     (d)  The  Executive  will  faithfully,  honestly and  diligently  serve the
          Company  and   cooperate   with  the   Company  and  utilize   maximum
          professional  skill  and care to  ensure  that all  services  rendered
          hereunder are to the satisfaction of the Company,  acting  reasonably,
          and the  Executive  will provide any other  services not  specifically
          mentioned herein,  but which by reason of the Executive's  capability,
          the  Executive  knows or ought to know to be  necessary to ensure that
          the best interests of the Company are maintained.

     (e)  The Executive  will assume,  obey,  implement and execute such duties,
          directions,  responsibilities,  procedures, policies and lawful orders
          as may be determined or given from time to time by the Company.

     (f)  The Executive  will report the results of his duties  hereunder to the
          Company as it may request from time to time.

1.3  Directorship:  The Executive  shall become a director of the Company on the
     date hereof.  The Company's board of directors shall take such action as is
     necessary to accomplish the foregoing on the date hereof.

                                    ARTICLE 2
                                  COMPENSATION

2.1 Remuneration.

                                       2
<PAGE>
     (a)  For services  rendered by the Executive during the Term, the Executive
          will be paid monthly remuneration, payable in 12 separate payments, in
          each case  within 10 days  after the end of each  month,  of US $2,500
          (the "FEE").  To the extent that the Company does not have  sufficient
          funds to pay for the services hereunder, the Executive agrees that his
          fees will be registered in the Company's  books as a loan given to the
          Company by the Executive.  The Executive's Fees will be accumulated in
          the  Company's  books as loan.  Executive's  Fees  will be paid by the
          Company as soon as it will have the funds to do so. The Executive will
          have  the  option,  at  any  time,  to  convert  the  above  mentioned
          accumulated  debt,  or part of it into  shares of the  Company  at the
          average  trading price of the 10 days prior to the date of the request
          by the Executive to exercise this option. This option will survive the
          Term of this agreement.

     (b)  The Executive will receive 600,000 shares of common stock on an annual
          basis. In the event of an acquisition, merger, reorganization, sale of
          all or  substantially  all of the  assets of the  Company or any other
          transaction  resulting in a change of control or the  acquisition of a
          controlling  interest  in the  Company,  it is hereby  agreed that all
          shares  of common  stock and all  options  described  in this  Section
          2.1(b)  will  vest  immediately   prior  to  the  occurrence  of  such
          transaction

     (c)  In  addition  to the  Fees,  the  Company  will  grant  the  Executive
          additional  compensation  in the  form of cash or  shares  in cases of
          extraordinary contribution by him to the benefit of the Company.

     (d)  The Executive's position with the Company requires a special degree of
          personal trust, and the Company is not able to supervise the number of
          working hours of the  Executive.  Therefore the Executive  will not be
          entitled to any additional  remuneration  whatsoever for his work with
          the  exception of that  specifically  set out in this  Agreement.  The
          Executive  has  other  business  interests  and,  as  such,  shall  be
          permitted  to spend  such time as the  Executive  deems  necessary  or
          expedient on such interests,  so long as there is no adverse  material
          impact on the Executive's performance of his obligations hereunder.

2.2  Incentive Plans. The Executive will be entitled to participate in any bonus
     plan or  incentive  compensation  plans for its  employees,  adopted by the
     Company.

2.3  Expenses.  The  Executive  will  be  reimbursed  by  the  Company  for  all
     reasonable  business  expenses incurred by the Executive in connection with
     his duties.  This  includes,  but is not  limited to,  payments of expenses
     incurred  when  traveling  abroad,  per diem  payments  for  travel  abroad
     according to the rules set forth by the Israeli Tax Authorities and others.

                                       3
<PAGE>
                                    ARTICLE 3
                             INSURANCE AND BENEFITS

3.1  Liability  Insurance   Indemnification.   When  the  Company  is  cash-flow
     positive,  the Company  will  insure the  Executive  (including  his heirs,
     executors and administrators) with coverage under a standard directors' and
     officers' liability insurance policy at the Company's expense.

                                    ARTICLE 4
                       CONFIDENTIALITY AND NON-COMPETITION

4.1  Maintenance of Confidential Information.

     (a)  The  Executive  acknowledges  that,  in the course of  performing  his
          obligations   hereunder,   the  Executive  will,  either  directly  or
          indirectly,   have  access  to  and  be  entrusted  with  Confidential
          Information  (whether oral, written or by inspection)  relating to the
          Company or its respective affiliates, associates or customers.

     (b)  The Executive acknowledges that the Company's Confidential Information
          constitutes  a  proprietary  right,  which the  Company is entitled to
          protect. Accordingly, the Executive covenants and agrees that, as long
          as he  works  for the  Company,  the  Executive  will  keep in  strict
          confidence  the  Company's  Confidential  Information  and  will  not,
          without  prior  written  consent  of  the  Company,  disclose,  use or
          otherwise disseminate the Company's Confidential Information, directly
          or indirectly, to any third party.

     (c)  The Executive  agrees that,  upon  termination of his services for the
          Company,  he will  immediately  surrender  to the  Company all Company
          Confidential Information then in his possession or under his control.

4.2  Exceptions.  The  general  prohibition  contained  in Section 0 against the
     unauthorized disclosure, use or dissemination of the Company's Confidential
     Information  will  not  apply  in  respect  of  any  Company   Confidential
     Information that:

     (a)  is available to the public generally;

     (b)  becomes part of the public domain through no fault of the Executive;

     (c)  is already in the lawful  possession  of the  Executive at the time of
          receipt of the Company's Confidential Information; or

     (d)  is compelled by  applicable  law to be  disclosed,  provided  that the
          Executive gives the Company prompt written notice of such  requirement
          prior to such  disclosure  and provides  assistance at the request and
          expense of the Company, in obtaining an order protecting the Company's
          Confidential Information from public disclosure.

                                       4
<PAGE>
4.3  No Solicitation.

     (a)  "Customer":  For the purposes of this Agreement,  "CUSTOMER" means any
          Person  who is,  at any  time  during  the Term of this  agreement,  a
          customer of the Company.

     (b)  The Executive  covenants and undertakes  that he will not, at any time
          during  the  Term  of  this  Agreement  for any  reason,  directly  or
          indirectly, in any way:

          (i)  solicit,  hire or engage  the  services  of any  employee  of the
               Company or its  affiliates or persuade or attempt to persuade any
               such individual to terminate his employment or relationship  with
               the Company or any of its Affiliates;

          (ii) persuade or attempt to persuade any  Customer to restrict,  limit
               or discontinue  purchasing or retaining the services  provided by
               the Company or any of its  affiliates  to any such Customer or to
               reduce  the  amount  of  business  which  any such  Customer  has
               customarily done, or contemplates  doing, with the Company or any
               of its  affiliates  in respect of the Company's  business,  or to
               solicit  or take away,  or attempt to solicit or take away,  from
               the  Company or any of its  affiliates  any of its  Customers  in
               respect of the Company's business.

                                    ARTICLE 5
                                   TERMINATION

5.1  TERMINATION OF  EMPLOYMENT.  The  Executive's  employment may be terminated
     only as follows:

     (a)  Termination by the Company

          (i)  For Cause.  The Company may terminate the Executive's  employment
               for Cause.

          (ii) Without Cause. The Company may terminate  Executive's  employment
               at any time by giving  Executive 30 days prior written  Notice of
               the termination.

     (b)  Termination by the Executive

          (i)  For Good Reason.  The Executive  may  terminate  the  Executive's
               employment with the Company for Good Reason.

          (ii) Without Good Reason. The Executive may voluntarily  terminate the
               Executive's employment with the Company at any time by giving the
               Company 30 days prior written Notice of the termination.

                                       5
<PAGE>
     (c)  Termination Upon Death or Disability

          (i)  Death.  The  Executive's  employment  shall  terminate  upon  the
               Executive's death.

          (ii) Disability.  The Company may terminate the Executive's employment
               upon the Executive's Disability.

     (d)  For the purpose of this Article 5 "Cause" means:

          (i)  Breach of Agreement.  Executive's  material breach of Executive's
               obligations of this Agreement not cured after 30 days Notice from
               the Company.

          (ii) Gross Negligence. Executive's gross negligence in the performance
               of Executive's duties.

          (iii)Crimes and Dishonesty.  Executive's  conviction of or plea guilty
               to any crime involving, dishonesty, fraud or moral turpitude.

     (e)  For the purpose of this Article 5 "Good Reason" means:

          (i)  Breach  of  Agreement.  The  Company's  material  breach  of this
               Agreement,  which breach has not been cured by the Company within
               30 days after receipt of written notice specifying, in reasonable
               detail, the nature of such breach or failure from Executive.

          (ii) Non Payment.  The failure of the Company to pay any amount due to
               Executive  hereunder,  which  failure  persists for 30 days after
               written notice of such failure has been received by the Company.

          (iii)Change of  Responsibilities/Compensation.  Any material reduction
               in  Executive's  title or a  material  reduction  in  Executive's
               duties or  responsibilities  or any  material  adverse  change in
               Executive's  Base  Salary  or  any  material  adverse  change  in
               Executive's benefits.

          (iv) Change of  Location.  Any  relocation  of the  premises  at which
               Executive  works to a location more than 60 kilometers  from such
               location, without Executive's consent.

It is agreed that, in the event of  termination of this agreement if the Company
decides that the Executive's services are not needed during the 30 day Notice of
termination period,  Company will continue to be responsible for paying cash and
equity  compensation as defined in Article 2 of this Agreement for the entire 30
day  period.  Neither the  Company,  nor the  Executive  will be entitled to any
notice, or payment in excess of that specified in this Article 5.

                                       6
<PAGE>
                                    ARTICLE 6
                             MUTUAL REPRESENTATIONS

6.1  The Executive represents and warrants to the Company that the execution and
     delivery of this Agreement and the fulfillment of the terms hereof

     (a)  will not  constitute a default under or conflict with any agreement or
          other instrument to which he is a party or by which he is bound; and

     (b)  do not require the consent of any person or entity.

6.2  The Company  represents  and warrants to the Executive  that this Agreement
     has been duly  authorized,  executed and  delivered by the Company and that
     the fulfillment of the terms hereof

     (a)  will not  constitute a default under or conflict with any agreement of
          other instrument to which it is a party or by which it is bound; and

     (b)  do not require the consent of any person of entity.

6.3  Each party hereto  warrants and represents to the other that this Agreement
     constitutes  the valid and  binding  obligation  of such party  enforceable
     against  such party in  accordance  with its terms  subject  to  applicable
     bankruptcy,  insolvency,  moratorium and similar laws affecting  creditors'
     rights generally, and subject, as to enforceability,  to general principles
     of equity  (regardless  if enforcement is sought in proceeding in equity or
     at law).

                                    ARTICLE 7
                                     NOTICES

7.1  Notices.  All notices  required or allowed to be given under this Agreement
     must be made either personally by delivery to or by facsimile  transmission
     to the address as hereinafter  set forth or to such other address as may be
     designated from time to time by such party in writing:

     (a)  in the case of the Company, to:

              FIRST AMERICAN SILVER CORPORATION
              To be provided under separate cover

     (b)  and in the case of the Executive,  to the  Executive's  last residence
          address known to the Company.

7.2  Change of Address. Any party may, from time to time, change its address for
     service  hereunder  by  written  notice  to the other  party in the  manner
     aforesaid.

                                       7
<PAGE>
                                    ARTICLE 8
                                     GENERAL

8.1  Further  Assurances.  Each party hereto will  promptly and duly execute and
     deliver to the other party such further  documents and  assurances and take
     such  further  action as such other party may from time to time  reasonably
     request in order to more  effectively  carry out the intent and  purpose of
     this Agreement and to establish and protect the rights and remedies created
     or intended to be created hereby.

8.2  Waiver.  No provision  hereof will be deemed waived and no breach  excused,
     unless  such waiver or consent  excusing  the breach is made in writing and
     signed by the party to be charged with such waiver or consent.  A waiver by
     a party of any  provision  of this  Agreement  will not be  construed  as a
     waiver of a further breach of the same provision.

8.3  Amendments  in Writing.  No amendment,  modification  or rescission of this
     Agreement  will be effective  unless set forth in writing and signed by the
     parties hereto.

8.4  Assignment.  Except as herein expressly provided, the respective rights and
     obligations  of the Executive and the Company under this Agreement will not
     be  assignable  by either  party  without the written  consent of the other
     party and will,  subject to the  foregoing,  inure to the benefit of and be
     binding upon the Executive and the Company and their  permitted  successors
     or assigns.  Nothing  herein  expressed or implied is intended to confer on
     any person other than the parties hereto any rights, remedies,  obligations
     or liabilities under or by reason of this Agreement.

8.5  The Company  acknowledges  and agrees that the  Executive may submit to the
     Company invoices from a company that employs him in lieu of invoices on his
     name.  The  Executive  confirms  that any such invoice will replace his own
     invoice  and he agrees  that his fees will be paid by the  Company to third
     parties provided that it is done as per his instructions to the Company.

8.6  Severability.  In the event that any provision  contained in this Agreement
     is declared  invalid,  illegal or  unenforceable by a court or other lawful
     authority of competent  jurisdiction,  such provision will be deemed not to
     affect or impair the validity or  enforceability  of any other provision of
     this Agreement, which will continue to have full force and effect.

8.7  Headings.  The headings in this  Agreement are inserted for  convenience of
     reference only and will not affect the  construction or  interpretation  of
     this Agreement.

8.8  Number and Gender.  Wherever the singular or masculine or neuter is used in
     this  Agreement,  the same  will be  construed  as  meaning  the  plural or
     feminine or a body politic or corporate and vice versa where the context so
     requires.

                                       8
<PAGE>
8.9  Time. Time is of the essence in this Agreement.

8.10 Governing  Law.  This  Agreement  will  be  construed  and  interpreted  in
     accordance  with the laws of the  State of New York  without  regard to its
     conflicts of laws  principles  or the  conflicts of laws  principles of any
     other  jurisdiction and each of the parties hereto expressly attorns to the
     jurisdiction of the courts of the State of New York. The sole and exclusive
     place of  jurisdiction  in any matter arising out of or in connection  with
     this Agreement will be the applicable New York court.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as
of the date and year first above written.

First American Silver Corporation

/s/ Charles El-Moussa
-----------------------------------
Name: Charles El-Moussa
Title: Director

AGREED AND ACCEPTED:

Mark Radom

/s/ Mark Radom
-----------------------------------

                                       9

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