SEC Contract Filing

Filing Date: 2020-03-27

Document Content:
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<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>exhibit10-2.htm
<DESCRIPTION>EXHIBIT 10.2
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 <title>Sphere 3D Corporation: Exhibit 10.2 - Filed by newsfilecorp.com</title>
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 <p style="text-align: right;"><u><b>EXHIBIT 10.2</b></u></p>
 <p style="text-align: justify;"><b>UNLESS PERMITTED UNDER APPLICABLE SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THIS SECURITY TO OR FOR THE BENEFIT OF A CANADIAN PURCHASER UNTIL THE DATE THAT IS FOUR MONTHS AND A DAY AFTER </b>[&#8226;]<b>, 2020.</b></p>
 <p style="text-align: justify;"><b>NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT"), OR APPLICABLE STATE SECURITIES LAWS.&#160; THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED UNLESS REGISTERED UNDER THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE, AND THE CORPORATION AND ITS TRANSFER AGENT HAS RECEIVED AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THEM TO SUCH EFFECT.</b></p>
 <p style="text-align: justify;"><b>THIS DEBENTURE IS NOT TRANSFERABLE EXCEPT IN COMPLIANCE WITH SECTION 5.11 HEREOF AND THE ABOVE LEGENDS.</b></p>
 <p style="text-align: center;"><b>SPHERE 3D CORP.</b></p>
 <p style="text-align: center;"><b>UNSECURED CONVERTIBLE DEBENTURES</b></p>
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 <td style="width: 50%;"><b>Number of Convertible Debentures:&#160; </b>[&#8226;]</td>
 <td style="width: 50%; text-align: right;"><b>Date: </b>[&#8226;]<b>, 2020</b></td>
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 <p style="text-align: center;"><b>ARTICLE 1</b><br><b>PRINCIPAL AND INTEREST</b></p>
 <p style="margin-left: 13.5pt; text-align: justify;">1.1<font style="width: 22.25pt; display: inline-block;">&#160;</font><b>Promise to Pay</b></p>
 <p style="text-align: justify;"><b>FOR VALUE RECEIVED, </b>the undersigned, <b>SPHERE 3D CORP.</b>, a corporation amalgamated under the laws of the Province of Ontario (the "<b>Company</b>"), hereby acknowledges itself indebted and promises to pay to <b>&#9679; </b>and its successors and permitted assigns (the "<b>Holder</b>"), as it may direct, on the Maturity Date (as hereinafter defined) or on such earlier date as the principal amount hereof may become due in accordance with the provisions hereof, on presentation and surrender of this Debenture in accordance with the provisions hereof at the offices of the Company, the principal amount of &#9679; Dollars ($&#9679;) in lawful money of United States (the "<b>Principal Amount</b>"), and to pay interest ("<b>Interest</b>") on the Principal Amount outstanding from time to time (after as well as before maturity, default and judgment) at a rate equal to six percent (6%) per annum (the "<b>Interest Rate</b>"). Interest shall accrue and be calculated monthly, not in advance, at the Interest Rate, shall compound semi-annually, and shall be payable by the Company, subject to the repayment provisions contained herein, on the Maturity Date or on such earlier date as the Interest may become due in accordance with the provisions hereof. Interest shall accrue commencing on the Closing Date (as hereafter defined) and shall be calculated on the basis of the actual days elapsed and on the basis of a year of 365 days.</p>
 <p style="margin-left: 13.5pt; text-align: justify;">1.2<font style="width: 22.25pt; display: inline-block;">&#160;</font><b>Purpose of the Loan</b></p>
 <p style="text-align: justify;">The Company shall use the Loan to settle outstanding obligations of the Company for working capital and general corporate purposes.</p>
 <p style="margin-left: 13.5pt; text-align: justify;">1.3<font style="width: 22.25pt; display: inline-block;">&#160;</font><b>Voluntary Prepayment</b></p>
 <p style="text-align: justify;">The Company shall be entitled to voluntarily prepay any amounts outstanding hereunder without the prior written consent of the Holder.</p>
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 <p style="margin-left: 13.5pt; text-align: justify;">1.4<font style="width: 22.25pt; display: inline-block;">&#160;</font><b>Designation and Priority</b></p>
 <p style="text-align: justify;">This Debenture is one of several six percent (6%) unsecured convertible debentures to be issued by the Company on or about the date hereof in an aggregate principal amount of up to Two Million Dollars ($2,000,000.00) issuable in increments of $1,000.00 (collectively, the "<b>Convertible Debentures</b>"), each of which Convertible Debentures shall be in substantially the same form as this Debenture, shall bear Interest in accordance with Section 1.1 hereof and shall be convertible in accordance with Article 3 hereof.&#160; Each Convertible Debenture shall rank equally and ratably without discrimination, preference or priority with all other Convertible Debentures. For greater certainty, the Obligations of the Company evidenced by any Convertible Debenture shall not be superior in right of payment to the Obligations evidenced by any other Convertible Debenture. The ranking of the Convertible Debentures set out in this Section 1.4 shall apply in all events and circumstances regardless of the date of the Debenture or the date of any advance or advances made to the Company by the holders of the Convertible Debentures. The provisions of this Debenture shall be binding on the Company, the Holder and all Persons claiming through or under them respectively and any Person shall be deemed to have notice of these provisions.&#160;</p>
 <p style="text-align: center;"><b>A