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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities
Exchange Act of 1934
Date of Report (Date of earliest event reported):
January 31, 2025 (January 27, 2025)
CLEANCORE SOLUTIONS, INC. |
(Exact name of registrant as specified in its charter) |
Nevada |
|
001-42033 |
|
88-4042082 |
(State or other jurisdiction
of incorporation) |
|
(Commission File Number) |
|
(IRS Employer
Identification No.) |
5920 S. 118th Circle, Omaha, NE |
|
68137 |
(Address of principal executive offices) |
|
(Zip Code) |
(877) 860-3030 |
(Registrant’s telephone number, including area code) |
|
(Former name or former address, if changed since last report) |
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class |
|
Trading Symbol(s) |
|
Name of each exchange on which registered |
Class B Common Stock, par value $0.0001 per share |
|
ZONE |
|
NYSE American LLC |
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging Growth Company ☒
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act.
| Item 1.01 | Notice of Entry into a Material Definitive Agreement. |
As previously disclosed, on December 24, 2024,
CleanCore Solutions Inc. (the “Company”) issued a 20% original issue discount promissory note in the principal amount
of $415,241.25 to Clayton Adams, the Company’s Chief Executive Officer (the “OID Note”).
On January 27, 2025, Mr. Adams entered into a
note sale assignment and cancellation agreement (the “Assignment Agreement”) with Travis Buchanan, the Company’s
President. Pursuant to the Assignment Agreement, Mr. Adams sold and assigned $125,000 of the OID Note to Mr. Buchanan for a purchase price
of $100,000. Following such assignment, the Company issued a 20% original issue discount promissory note in the principal amount of $125,000
to Mr. Buchanan and a 20% original issue discount promissory note in the principal amount of $290,241.25 to Mr. Adams (collectively, the
“New OID Notes”). The New OID Notes are due and payable on June 30, 2025 and accrue interest at a rate of 8% per annum;
provided that upon an event of default (as defined in the New OID Notes), such interest rate shall increase to 15% per annum. The New
OID Notes may be prepaid at any time without premium or penalty, are unsecured, and contain customary events of default for loans of this
type.
The foregoing summary of the terms and conditions
of the Assignment Agreement and the OID Notes does not purport to be complete and is qualified in its entirety by reference to the full
text of those documents attached hereto as exhibits, which are incorporated herein by reference.
| Item 2.03 | Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of
a Registrant. |
The information set forth
under Item 1.01 is incorporated by reference into this Item 2.03.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits
Exhibit No. |
|
Description of Exhibit |
10.1 |
|
20% Original Issue Discount Promissory Note issued by CleanCore Solutions, Inc. to Clayton Adams on December 24, 2024 (incorporated by reference to Exhibit 10.5 to the Current Report on Form 8-K filed on December 31, 2024) |
10.2 |
|
Note Sale Assignment and Cancellation Agreement, dated January 27, 2025, among Clayton Adams, Travis Buchanan and CleanCore Solutions, Inc. |
10.3 |
|
20% Original Issue Discount Promissory Note issued by CleanCore Solutions, Inc. to Clayton Adams on January 27, 2025 |
10.4 |
|
20% Original Issue Discount Promissory Note issued by CleanCore Solutions, Inc. to Travis Buchanan on January 27, 2025 |
104 |
|
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Date: January 31, 2025 |
CLEANCORE SOLUTIONS, INC. |
|
|
|
/s/ Clayton Adams |
|
Name: Clayton Adams |
|
Title: Chief Executive Officer |
2
Exhibit 10.2
NOTE
SALE AND ASSIGNMENT AND CANCELLATION AGREEMENT
This
NOTE SALE ASSIGNMENT AND CANCELLATION AGREEMENT (this “Agreement”) is made and entered into as of January 27, 2025
(the “Effective Date”) by and among CLEANCORE SOLUTIONS, INC., a Nevada corporation (the “Company”),
CLAYTON ADAMS, the CEO of the Company (the “Transferor”), and TRAVIS BUCHANAN, the President of the
Company (“Buchanan”). The Transferor, Company, and Buchanan are sometimes referred to herein individually as a “Party”
or collectively, as the “Parties.”
Recitals:
A. On
December 24, 2024, the Company issued to the Transferor a 20% Original Issue Discount Promissory Note in the principal amount of $415,241.25
(the “Adams Note”) for a purchase price of $332,193.
B. The
Transferor agrees to sell and assign $125,000 of its right, title and interests in and to the principal amount of the Adams Note to Buchanan
(the “Assigned Portion”) in consideration for the payment of $100,000. Buchanan agrees to accept the sale and assignment
of the Assigned Portion as provided in this Agreement and the Company consents to the sale and assignment of the Assigned Portion of
the Adams Note to Buchanan on the terms set forth herein.
C. The
Parties further agree to cancel the Adams Note in exchange for the Company’s execution and delivery of the New Notes (defined below).
D. This
Agreement is intended to document the sale and assignment of the Assigned Portion of the Adams Note from the Transferor to Buchanan.
AGREEMENT
NOW,
THEREFORE, in consideration of the mutual promises herein contained and such other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Parties hereto, hereby agree as follows:
| 1. | Sale
and Assignment; Purchase Price. The Transferor hereby sells, assigns, transfers, conveys
and delivers unto Buchanan the Assigned Portion of the Adams Note and Buchanan herby acquires
the Assigned Portion of the Adams Note from the Transferor in exchange for the payment of
$100,000. Buchanan shall pay on the date hereof to the Transferor $100,000 in cash in immediately
available funds by wire transfer to an account specified by the Transferor in writing. |
| 2. | Cancellation
and Reissuance of Notes. Subject to the issuance of the New Notes (as defined below),
the Adams Note is hereby canceled and is of no further force and effect. To accomplish the
sale and assignment provided for in Section 1 of this Agreement, the Company shall issue
new promissory notes (“New Notes”), dated as of the date hereof, having
identical terms as the Adams Note, but one such New Note being registered in the name of
Buchanan and being in a principal amount equal to the Assigned Portion of the Adams Note,
with interest accruing thereon from the date hereof (the “Buchanan Note”);
and another New Note will be issued and registered in the name of Transferor, in the principal
amount equal to the principal amount of the Adams Note, less the Assigned Portion of the
Adams Note. |
| 3. | Consent
to Assignment. As indicated by its signature to this Agreement, the Company consents
to the sale and assignment of the Assigned Portion as provided for herein. |
| 4. | Representations
and Warranties. |
| (a) | By
Transferor: Transferor hereby represents and warrants that it owns the Adams Note beneficially
and of record, free and clear of all claims, charges, liens, contracts, rights, options,
security interests, mortgages, encumbrances and restrictions of every kind and nature (“Claims”).
Transferor represents and warrants that it has made no prior sale, assignment, transfer,
conveyance, or other disposition of the Adams Note or any portion of it. Neither the execution
and delivery of this Agreement, the consummation of the transactions contemplated hereby,
nor the performance of this Agreement in compliance with its terms and conditions by Transferor
will conflict with or result in any violation of any agreement, judgment, decree, order,
statute or regulation applicable to Transferor, or any breach of any agreement to which Transferor
is a party, or constitute a default thereunder, or result in the creation of any Claim of
any kind or nature on, or with respect to Transferor or Transferor’s assets, including,
without limitation, the Transferor’s equity interests in the Company. |
| (b) | By
Buchanan: The Buchanan Note is being acquired by Buchanan for its account, for investment
purposes and not with a view to the sale or distribution of all or any part of the Buchanan
Note, nor with any present intention to sell or in any way distribute the same, as those
terms are used in the Securities Act of 1933, as amended (the “Act”),
and the rules and regulations promulgated thereunder. Buchanan has sufficient knowledge and
experience in financial matters so as to be capable of evaluating the merits and risks of
purchasing the Buchanan Note. Buchanan has reviewed copies of such documents and other information
as he has deemed necessary in order to make an informed investment decision with respect
to its acquisition of the Buchanan Note. Buchanan understands that the Buchanan Note may
not be sold, transferred or otherwise disposed of without registration under the Act or the
availability of an exemption therefrom. Buchanan is an “Accredited Investor”
as defined in rule 501 (a) of Regulation D of the Act. |
| (c) | By
Each Party: Each Party represents and warrants that (i) none of the other Parties nor
any agent or attorney of any other Parties has made any representation, promise, or warranty
whatsoever, express or implied, written or oral, not contained in this Agreement or the New
Notes concerning the subject matter of this Agreement or the New Notes to induce such Party
to execute this Agreement or the New Notes; and (ii) such Party has not executed this Agreement
or the New Notes in reliance on any representation, promise, or warranty not contained herein
or in the New Notes. |
| 5. | Miscellaneous.
This Agreement shall not confer any rights or remedies upon any person other than the Parties
and their respective successors and permitted assigns. This Agreement and the New Notes constitute
the entire agreement among the Parties regarding the subject matter of this Agreement and
the New Notes and supersede any prior understandings, agreements, or representations by or
among the Parties, written or oral, to the extent they related in any way to the subject
matter of this Agreement or the New Notes. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original but all of which together will constitute
one and the same instrument. Scanned, facsimile or electronic signatures shall be deemed
originals for all purposes. The section headings contained in this Agreement are inserted
for convenience only and shall not affect in any way the meaning or interpretation of this
Agreement. This Agreement shall be governed by and construed in accordance with the laws
of the State of Nebraska. No amendment of any provision of this Agreement shall be valid
unless the same shall be in writing and signed by each of the Parties hereto. No waiver by
any Party of any default, misrepresentation, or breach of warranty or covenant hereunder,
whether intentional or not, shall be deemed to extend to any prior or subsequent default,
misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights
arising by virtue of any prior or subsequent such occurrence. Any term or provision of this
Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not
affect the validity or enforceability of the remaining terms and provisions hereof or the
validity or enforceability of the offending term or provision in any other situation or in
any other jurisdiction. Each of the Parties will bear his or its own costs and expenses (including
legal fees and expenses) incurred in connection with this Agreement and the transactions
contemplated hereby. Each Party acknowledges and agrees that the other Party would be damaged
irreparably in the event any of the provisions of this Agreement are not performed in accordance
with their specific terms or otherwise are breached. Accordingly, each Party agrees that
the other Party shall be entitled to an injunction or injunctions to prevent breaches of
the provisions of this Agreement and to enforce specifically this Agreement and the terms
and provisions hereof in any action instituted in courts of the State of Nebraska having
jurisdiction over the Parties and the matter, in addition to any other remedy to which they
may be entitled, at law or in equity. |
IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the date first above written.
CLAYTON ADAMS |
|
TRAVIS BUCHANAN |
|
|
|
|
Signed: |
/s/ Clayton Adams |
|
Signed: |
/s/ Travis Buchanan |
Date signed: January 27, 2025 |
|
Date signed: January 27, 2025 |
|
|
|
|
|
CLEANCORE SOLUTIONS, INC. |
|
|
|
|
|
|
|
|
By: |
/s/ David Enholm |
|
|
|
Name: |
David Enholm |
|
|
|
Title: |
Chief Financial Officer |
|
|
|
Date signed: January 27, 2025 |
|
|
|
Exhibit 10.3
THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES
LAWS OF ANY STATES IN THE UNITED STATES. THIS NOTE IS SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED
OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM. THE ISSUER OF THIS NOTE MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT
ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.
20%
Original Issue Discount PROMISSORY NOTE
Original
Issue Date: |
|
January
27, 2025 |
|
|
|
Principal
Amount of Note: |
|
$290,241.25 |
|
|
|
Purchase
Price of Note: |
|
$232,193 |
For
value received CleanCore Solutions, Inc., a Nevada corporation (the “Company”),
promises to pay to the undersigned holder or such party’s assigns (the “Holder”) the principal amount set forth
above (the “Principal Amount”), with simple interest on the outstanding Principal Amount at the rate of eight percent
(8.00%) per annum (the “Interest Rate”). Interest shall commence the date hereof and shall continue to accrue on the
outstanding Principal Amount until paid in full. Interest shall be computed on the basis of a year of 365 days for the actual number
of days elapsed. All unpaid interest and principal shall be due and payable on June 30, 2025 (such date the “Maturity Date”).
1. Basic
Terms.
(a) Original
Issue Discount Note.
(i) This
Original Issue Discount Promissory Note (this “Note”) has been issued with an “original issue discount”
for U.S. Federal income tax purposes. The Company will make available to the Holder of this Note: (1) the issue price and issue date
of the Note, (2) the amount of original issue discount on the Note, (3) the yield to maturity of the Note, and (4) any other information
required to be made available by the U.S. Treasury Regulations.
(b) Payments.
(i) Interest.
Interest shall accrue to the Holder on the aggregate and then outstanding Principal Amount at the Interest Rate. Unless earlier repaid
accrued interest on this Note shall be payable on the Maturity Date.
(ii) Payments.
All payments of interest and principal shall be in lawful money of the United States of America. All payments shall be applied first
to accrued interest, and thereafter to principal.
(c) Prepayment.
The Company may prepay this Note at any time without premium or penalty.
2. Representations
and Warranties.
(a) Representations
and Warranties of the Company. The Company hereby represents and warrants to the Holder as of the date this Note is issued as follows:
(i) Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws
of the State of Nevada. The Company has the requisite corporate power to own and operate its properties and assets and to carry on its
business as now conducted and as proposed to be conducted. The Company is duly qualified and is authorized to do business and is in good
standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased)
makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect
on the Company or its business (a “Material Adverse Effect”).
(ii) Corporate
Power. The Company has all requisite corporate power to issue this Note and to carry out and perform its obligations under this Note.
The Company’s Audit Committee (the “Committee”) has approved the issuance of this Note based upon a reasonable
belief that the issuance of this Note is appropriate for the Company after reasonable inquiry concerning the Company’s financing
objectives and financial situation.
(iii) Authorization.
All corporate action on the part of the Company, the Committee or the board of directors of the Company, and the Company’s stockholders
necessary for the issuance and delivery of this Note has been taken. This Note constitutes a valid and binding obligation of the Company
enforceable in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors
and, with respect to rights to indemnity, subject to federal and state securities laws.
(iv) Governmental
Consents. All consents, approvals, orders or authorizations of, or registrations, qualifications, designations, declarations or filings
with, any governmental authority required on the part of the Company in connection with issuance of this Note has been obtained.
(v) Compliance
with Laws. To its knowledge, the Company is not in violation of any applicable statute, rule, regulation, order, or restriction of
any domestic or foreign government or any instrumentality or agency thereof in respect of the conduct of its business or the ownership
of its properties, which violation of which would have a Material Adverse Effect.
(vi) Compliance
with Other Instruments. The Company is not in violation or default of any term of its certificate of incorporation or bylaws, or
of any provision of any mortgage, indenture or contract to which it is a party and by which it is bound or of any judgment, decree, order
or writ, other than such violation(s) that would not have a Material Adverse Effect. The execution, delivery and performance of this
Note will not result in any such violation or be in conflict with, or constitute, with or without the passage of time and giving of notice,
either a default under any such provision, instrument, judgment, decree, order or writ or an event that results in the creation of any
lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture, or nonrenewal of any
material permit, license, authorization or approval applicable to the Company, its business or operations or any of its assets or properties.
Without limiting the foregoing, the Company has obtained all waivers reasonably necessary with respect to any preemptive rights, rights
of first refusal or similar rights, including any notice or offering periods provided for as part of any such rights, in order for the
Company to consummate the transactions contemplated hereunder without any third party obtaining any rights to cause the Company to offer
or issue any securities of the Company as a result of the consummation of the transactions contemplated hereunder.
(vii) No
“Bad Actor” Disqualification. The Company has exercised reasonable care to determine whether any Company Covered Person
(as defined below) is subject to any of the “bad actor” disqualifications described in Rule 506(d)(1)(i) through (viii),
as modified by Rules 506(d)(2) and (d)(3), under the Securities Act (“Disqualification Events”). To the Company’s
knowledge, no Company Covered Person is subject to a Disqualification Event. The Company has complied, to the extent required, with any
disclosure obligations under Rule 506(e) under the Securities Act. For purposes of this Note, “Company Covered Persons”
are those persons specified in Rule 506(d)(1) under the Securities Act; provided, however, that Company Covered Persons do not include
(a) the Holder, or (b) any person or entity that is deemed to be an affiliated issuer of the Company solely as a result of the relationship
between the Company and the Holder.
(viii) Offering.
Assuming the accuracy of the representations and warranties of the Holder contained in subsection (b) below, the offer, issue,
and sale of this Note is and will be exempt from the registration and prospectus delivery requirements of the Securities Act, and have
been registered or qualified (or are exempt from registration and qualification) under the registration, permit or qualification requirements
of all applicable state securities laws.
(ix) Use
of Proceeds. The Company shall use the proceeds of this Note to pay off an existing obligation in the approximate amount of the purchase
price of this Note owed to Walker Water, LLC that comes due on or about December 31, 2024.
(b) Representations
and Warranties of the Holder. The Holder hereby represents and warrants to the Company as of the date hereof as follows:
(i) Purchase
for Own Account. The Holder is acquiring this Note solely for the Holder’s own account and beneficial interest for investment
and not for sale or with a view to distribution of the Note or any part thereof, has no present intention of selling (in connection with
a distribution or otherwise), granting any participation in, or otherwise distributing the same, and does not presently have reason to
anticipate a change in such intention.
(ii) Information
and Sophistication. Without lessening or obviating the representations and warranties of the Company set forth in subsection (a)
above, the Holder hereby: (A) acknowledges that the Holder has received all the information the Holder has requested from the Company
and the Holder considers necessary or appropriate for deciding whether to acquire the Note, (B) represents that the Holder has had an
opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Note and
to obtain any additional information necessary to verify the accuracy of the information given the Holder, and (C) further represents
that the Holder has such knowledge and experience in financial and business matters that the Holder is capable of evaluating the merits
and risk of this investment.
(iii) Ability
to Bear Economic Risk. The Holder acknowledges that investment in the Note involves a high degree of risk, and represents that the
Holder is able, without materially impairing the Holder’s financial condition, to hold the Note for an indefinite period of time
and to suffer a complete loss of the Holder’s investment.
(iv) Further
Limitations on Disposition. Without in any way limiting the representations set forth above, the Holder further agrees not to make
any disposition of all or any portion of the Note unless and until:
(1) There
is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in
accordance with such registration statement; or
(2) The
Holder shall have notified the Company of the proposed disposition and furnished the Company with a detailed statement of the circumstances
surrounding the proposed disposition, and if reasonably requested by the Company, the Holder shall have furnished the Company with an
opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration under the Securities
Act or any applicable state securities laws; provided that no such opinion shall be required for dispositions in compliance with Rule
144 under the Securities Act, except in unusual circumstances.
(3) Notwithstanding
the provisions of paragraphs (1) and (2) above, no such registration statement or opinion of counsel shall be necessary for a transfer
by the Holder to a partner (or retired partner) or member (or retired member) of the Holder in accordance with partnership or limited
liability company interests, or transfers by gift, will or intestate succession to any spouse or lineal descendants or ancestors, if
all transferees agree in writing to be subject to the terms hereof to the same extent as if they were the Holders hereunder.
(v) Accredited
Investor Status. The Holder is an “accredited investor” as such term is defined in Rule 501 under the Securities Act.
(vi) No
“Bad Actor” Disqualification. The Holder represents and warrants that neither (A) the Holder nor (B) any entity that
controls the Holder or is under the control of, or under common control with, the Holder, is subject to any Disqualification Event, except
for Disqualification Events covered by Rule 506(d)(2)(ii) or (iii) or (d)(3) under the Securities Act and disclosed in writing in reasonable
detail to the Company.
(vii) Forward-Looking
Statements. With respect to any forecasts, projections of results and other forward-looking statements and information provided to
the Holder, the Holder acknowledges that such statements were prepared based upon assumptions deemed reasonable by the Company at the
time of preparation. There is no assurance that such statements will prove accurate, and the Company has no obligation to update such
statements.
3. Events
of Default.
(a) If
there shall be any Event of Default (as defined below) hereunder, at the option and upon the declaration of the Holder and upon written
notice to the Company (which election and notice shall not be required in the case of an Event of Default under subsection (ii)
or (iii) below), this Note shall accelerate and all principal and unpaid accrued interest shall become due and payable. The occurrence
of any one or more of the following shall constitute an “Event of Default”:
(i) The
Company fails to pay timely any of the principal amount due under this Note on the date the same becomes due and payable or any unpaid
accrued interest or other amounts due under this Note on the date the same becomes due and payable;
(ii) The
Company files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other law for
the relief of, or relating to, debtors, now or hereafter in effect, or makes any assignment for the benefit of creditors or takes any
corporate action in furtherance of any of the foregoing;
(iii) An
involuntary petition is filed against the Company (unless such petition is dismissed or discharged within 60 days under any bankruptcy
statute now or hereafter in effect, or a custodian, receiver, trustee, or assignee for the benefit of creditors (or other similar official)
is appointed to take possession, custody or control of any property of the Company)
(iv) The
Company shall fail to observe or perform any other covenant or agreement contained in this Note or any transaction document which failure
is not cured, if possible to cure, within ten (10) days after the Company has received notice of such failure from Holder or otherwise
has become aware of such failure; or
(v) Any
representation or warranty made in this Note, any other transaction document, any written statement pursuant hereto or thereto or any
other report, financial statement or certificate made or delivered to the Holder shall be untrue or incorrect in any material respect
as of the date when made or deemed made, which failure is not cured, if possible to cure, within ten (10) days after the Company has
received notice of such failure from Holder or otherwise has become aware of such failure.
(b) In
the event of any Event of Default hereunder, the Company shall pay all reasonable attorneys’ fees and court costs incurred by the
Holder in enforcing and collecting this Note and the Interest Rate shall be increased to fifteen percent (15%) during the continuance
of the Event of Default.
4. Miscellaneous
Provisions.
(a) Waivers.
The Company hereby waives demand, notice, presentment, protest and notice of dishonor.
(b) Further
Assurances. The Holder agrees and covenants that at any time and from time to time the Holder will promptly execute and deliver to
the Company such further instruments and documents and take such further action as the Company may reasonably require in order to carry
out the full intent and purpose of this Note and to comply with state or federal securities laws or other regulatory approvals.
(c) Transfers
of Note. This Note may be transferred only upon its surrender to the Company for registration of transfer, duly endorsed, or accompanied
by a duly executed written instrument of transfer in a form satisfactory to the Company. Thereupon, this Note shall be reissued to, and
registered in the name of, the transferee, or a new Note for like principal amount and interest shall be issued to, and registered in
the name of, the transferee. Interest and principal shall be paid solely to the registered holder of this Note. Such payment shall constitute
full discharge of the Company’s obligation to pay such interest and principal.
(d) Amendment
and Waiver. Any term of this Note may be amended or waived only in a writing signed by both the Company and the Holder.
(e) Governing
Law. This Note shall be governed by and construed under the laws of the State of Nebraska, as applied to agreements among Nebraska
residents, made and to be performed entirely within the State of Nebraska, without giving effect to conflicts of laws principles.
(f) Binding
Agreement. The terms and conditions of this Note shall inure to the benefit of and be binding upon the respective successors and
assigns of the parties. Nothing in this Note, expressed or implied, is intended to confer upon any third party any rights, remedies,
obligations or liabilities under or by reason of this Note, except as expressly provided in this Note.
(g) Counterparts;
Manner of Delivery. This Note may be executed in two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including
pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act or other applicable
law) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid
and effective for all purposes.
(h) Titles
and Subtitles. The titles and subtitles used in this Note are used for convenience only and are not to be considered in construing
or interpreting this Note.
(i) Notices.
All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (i) upon personal delivery
to the party to be notified, (ii) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the
recipient, if not, then on the next business day, (iii) five days after having been sent by registered or certified mail, return
receipt requested, postage prepaid, or (iv) one day after deposit with a nationally recognized overnight courier, specifying next
day delivery, with written verification of receipt. All communications to a party shall be sent to the party’s address set forth
on the signature page hereto or at such other address(es) as such party may designate by 10 days’ advance written notice to the
other party hereto.
(j) Expenses.
The Company and the Holder shall each bear its respective expenses and legal fees incurred with respect to the negotiation, execution
and delivery of this Note and the transactions contemplated herein.
(k) Delays
or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to the Holder, upon any breach
or default of the Company under this Note shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any
such breach or default, or any acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver
of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. It is further
agreed that any waiver, permit, consent or approval of any kind or character by the Holder of any breach or default under this Note,
or any waiver by the Holder of any provisions or conditions of this Note, must be in writing and shall be effective only to the extent
specifically set forth in writing and that all remedies, either under this Note, or by law or otherwise afforded to the Holder, shall
be cumulative and not alternative. This Note shall be void and of no force or effect in the event that the Holder fails to remit the
full principal amount to the Company within five calendar days of the date of this Note.
(l) Entire
Agreement. This Note constitutes the full and entire understanding and agreement between the parties with regard to the subjects
hereof, and no party shall be liable or bound to any other party in any manner by any representations, warranties, covenants and agreements
except as specifically set forth herein.
(m) Exculpation.
The Holder acknowledges that the Holder is not relying on any person, firm or corporation, other than the Company and its officers and
the Committee and board members, in making its investment or decision to invest in the Company.
[Signature
pages follow]
The
parties have executed this 20% Original Issue Discount Promissory Note as of the
date first noted above.
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COMPANY: |
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CleanCore
Solutions, Inc. |
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By: |
/s/
David Enholm |
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Name: |
David
Enholm |
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Title: |
Chief Financial
Officer |
SIGNATURE
PAGE TO
20%
OID PROMISSORY NOTE
The
parties have executed this 20% Original Issue Discount Promissory Note as of the
date first noted above.
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HOLDER (if
an entity): |
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Name of Holder: |
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By: |
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Name: |
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Title: |
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HOLDER (if
an individual): |
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Name of Holder: |
Clayton Adams |
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Signature: |
/s/ Clayton Adams |
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E-mail: |
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Address: |
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SIGNATURE
PAGE TO
20%
OID PROMISSORY NOTE
Exhibit 10.4
THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES
LAWS OF ANY STATES IN THE UNITED STATES. THIS NOTE IS SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE TRANSFERRED
OR RESOLD EXCEPT AS PERMITTED UNDER THE SECURITIES ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
THEREFROM. THE ISSUER OF THIS NOTE MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT
ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.
20%
Original Issue Discount PROMISSORY NOTE
Original
Issue Date: |
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January
27, 2025 |
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Principal
Amount of Note: |
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$125,000 |
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Purchase
Price of Note: |
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$100,000 |
For
value received CleanCore Solutions, Inc., a Nevada corporation (the “Company”),
promises to pay to the undersigned holder or such party’s assigns (the “Holder”) the principal amount set forth
above (the “Principal Amount”), with simple interest on the outstanding Principal Amount at the rate of eight percent
(8.00%) per annum (the “Interest Rate”). Interest shall commence the date hereof and shall continue to accrue on the
outstanding Principal Amount until paid in full. Interest shall be computed on the basis of a year of 365 days for the actual number
of days elapsed. All unpaid interest and principal shall be due and payable on June 30, 2025 (such date the “Maturity Date”).
1. Basic
Terms.
(a) Original
Issue Discount Note.
(i) This
Original Issue Discount Promissory Note (this “Note”) has been issued with an “original issue discount”
for U.S. Federal income tax purposes. The Company will make available to the Holder of this Note: (1) the issue price and issue date
of the Note, (2) the amount of original issue discount on the Note, (3) the yield to maturity of the Note, and (4) any other information
required to be made available by the U.S. Treasury Regulations.
(b) Payments.
(i) Interest.
Interest shall accrue to the Holder on the aggregate and then outstanding Principal Amount at the Interest Rate. Unless earlier repaid
accrued interest on this Note shall be payable on the Maturity Date.
(ii) Payments.
All payments of interest and principal shall be in lawful money of the United States of America. All payments shall be applied first
to accrued interest, and thereafter to principal.
(c) Prepayment.
The Company may prepay this Note at any time without premium or penalty.
2. Representations
and Warranties.
(a) Representations
and Warranties of the Company. The Company hereby represents and warrants to the Holder as of the date this Note is issued as follows:
(i) Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the laws
of the State of Nevada. The Company has the requisite corporate power to own and operate its properties and assets and to carry on its
business as now conducted and as proposed to be conducted. The Company is duly qualified and is authorized to do business and is in good
standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased)
makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect
on the Company or its business (a “Material Adverse Effect”).
(ii) Corporate
Power. The Company has all requisite corporate power to issue this Note and to carry out and perform its obligations under this Note.
The Company’s Audit Committee (the “Committee”) has approved the issuance of this Note based upon a reasonable
belief that the issuance of this Note is appropriate for the Company after reasonable inquiry concerning the Company’s financing
objectives and financial situation.
(iii) Authorization.
All corporate action on the part of the Company, the Committee or the board of directors of the Company, and the Company’s stockholders
necessary for the issuance and delivery of this Note has been taken. This Note constitutes a valid and binding obligation of the Company
enforceable in accordance with its terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors
and, with respect to rights to indemnity, subject to federal and state securities laws.
(iv) Governmental
Consents. All consents, approvals, orders or authorizations of, or registrations, qualifications, designations, declarations or filings
with, any governmental authority required on the part of the Company in connection with issuance of this Note has been obtained.
(v) Compliance
with Laws. To its knowledge, the Company is not in violation of any applicable statute, rule, regulation, order, or restriction of
any domestic or foreign government or any instrumentality or agency thereof in respect of the conduct of its business or the ownership
of its properties, which violation of which would have a Material Adverse Effect.
(vi) Compliance
with Other Instruments. The Company is not in violation or default of any term of its certificate of incorporation or bylaws, or
of any provision of any mortgage, indenture or contract to which it is a party and by which it is bound or of any judgment, decree, order
or writ, other than such violation(s) that would not have a Material Adverse Effect. The execution, delivery and performance of this
Note will not result in any such violation or be in conflict with, or constitute, with or without the passage of time and giving of notice,
either a default under any such provision, instrument, judgment, decree, order or writ or an event that results in the creation of any
lien, charge or encumbrance upon any assets of the Company or the suspension, revocation, impairment, forfeiture, or nonrenewal of any
material permit, license, authorization or approval applicable to the Company, its business or operations or any of its assets or properties.
Without limiting the foregoing, the Company has obtained all waivers reasonably necessary with respect to any preemptive rights, rights
of first refusal or similar rights, including any notice or offering periods provided for as part of any such rights, in order for the
Company to consummate the transactions contemplated hereunder without any third party obtaining any rights to cause the Company to offer
or issue any securities of the Company as a result of the consummation of the transactions contemplated hereunder.
(vii) No
“Bad Actor” Disqualification. The Company has exercised reasonable care to determine whether any Company Covered Person
(as defined below) is subject to any of the “bad actor” disqualifications described in Rule 506(d)(1)(i) through (viii),
as modified by Rules 506(d)(2) and (d)(3), under the Securities Act (“Disqualification Events”). To the Company’s
knowledge, no Company Covered Person is subject to a Disqualification Event. The Company has complied, to the extent required, with any
disclosure obligations under Rule 506(e) under the Securities Act. For purposes of this Note, “Company Covered Persons”
are those persons specified in Rule 506(d)(1) under the Securities Act; provided, however, that Company Covered Persons do not include
(a) the Holder, or (b) any person or entity that is deemed to be an affiliated issuer of the Company solely as a result of the relationship
between the Company and the Holder.
(viii) Offering.
Assuming the accuracy of the representations and warranties of the Holder contained in subsection (b) below, the offer, issue,
and sale of this Note is and will be exempt from the registration and prospectus delivery requirements of the Securities Act, and have
been registered or qualified (or are exempt from registration and qualification) under the registration, permit or qualification requirements
of all applicable state securities laws.
(ix) Use
of Proceeds. The Company shall use the proceeds of this Note to pay off an existing obligation in the approximate amount of the purchase
price of this Note owed to Walker Water, LLC that comes due on or about December 31, 2024.
(b) Representations
and Warranties of the Holder. The Holder hereby represents and warrants to the Company as of the date hereof as follows:
(i) Purchase
for Own Account. The Holder is acquiring this Note solely for the Holder’s own account and beneficial interest for investment
and not for sale or with a view to distribution of the Note or any part thereof, has no present intention of selling (in connection with
a distribution or otherwise), granting any participation in, or otherwise distributing the same, and does not presently have reason to
anticipate a change in such intention.
(ii) Information
and Sophistication. Without lessening or obviating the representations and warranties of the Company set forth in subsection (a)
above, the Holder hereby: (A) acknowledges that the Holder has received all the information the Holder has requested from the Company
and the Holder considers necessary or appropriate for deciding whether to acquire the Note, (B) represents that the Holder has had an
opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Note and
to obtain any additional information necessary to verify the accuracy of the information given the Holder, and (C) further represents
that the Holder has such knowledge and experience in financial and business matters that the Holder is capable of evaluating the merits
and risk of this investment.
(iii) Ability
to Bear Economic Risk. The Holder acknowledges that investment in the Note involves a high degree of risk, and represents that the
Holder is able, without materially impairing the Holder’s financial condition, to hold the Note for an indefinite period of time
and to suffer a complete loss of the Holder’s investment.
(iv) Further
Limitations on Disposition. Without in any way limiting the representations set forth above, the Holder further agrees not to make
any disposition of all or any portion of the Note unless and until:
(1) There
is then in effect a registration statement under the Securities Act covering such proposed disposition and such disposition is made in
accordance with such registration statement; or
(2) The
Holder shall have notified the Company of the proposed disposition and furnished the Company with a detailed statement of the circumstances
surrounding the proposed disposition, and if reasonably requested by the Company, the Holder shall have furnished the Company with an
opinion of counsel, reasonably satisfactory to the Company, that such disposition will not require registration under the Securities
Act or any applicable state securities laws; provided that no such opinion shall be required for dispositions in compliance with Rule
144 under the Securities Act, except in unusual circumstances.
(3) Notwithstanding
the provisions of paragraphs (1) and (2) above, no such registration statement or opinion of counsel shall be necessary for a transfer
by the Holder to a partner (or retired partner) or member (or retired member) of the Holder in accordance with partnership or limited
liability company interests, or transfers by gift, will or intestate succession to any spouse or lineal descendants or ancestors, if
all transferees agree in writing to be subject to the terms hereof to the same extent as if they were the Holders hereunder.
(v) Accredited
Investor Status. The Holder is an “accredited investor” as such term is defined in Rule 501 under the Securities Act.
(vi) No
“Bad Actor” Disqualification. The Holder represents and warrants that neither (A) the Holder nor (B) any entity that
controls the Holder or is under the control of, or under common control with, the Holder, is subject to any Disqualification Event, except
for Disqualification Events covered by Rule 506(d)(2)(ii) or (iii) or (d)(3) under the Securities Act and disclosed in writing in reasonable
detail to the Company.
(vii) Forward-Looking
Statements. With respect to any forecasts, projections of results and other forward-looking statements and information provided to
the Holder, the Holder acknowledges that such statements were prepared based upon assumptions deemed reasonable by the Company at the
time of preparation. There is no assurance that such statements will prove accurate, and the Company has no obligation to update such
statements.
3. Events
of Default.
(a) If
there shall be any Event of Default (as defined below) hereunder, at the option and upon the declaration of the Holder and upon written
notice to the Company (which election and notice shall not be required in the case of an Event of Default under subsection (ii)
or (iii) below), this Note shall accelerate and all principal and unpaid accrued interest shall become due and payable. The occurrence
of any one or more of the following shall constitute an “Event of Default”:
(i) The
Company fails to pay timely any of the principal amount due under this Note on the date the same becomes due and payable or any unpaid
accrued interest or other amounts due under this Note on the date the same becomes due and payable;
(ii) The
Company files any petition or action for relief under any bankruptcy, reorganization, insolvency or moratorium law or any other law for
the relief of, or relating to, debtors, now or hereafter in effect, or makes any assignment for the benefit of creditors or takes any
corporate action in furtherance of any of the foregoing;
(iii) An
involuntary petition is filed against the Company (unless such petition is dismissed or discharged within 60 days under any bankruptcy
statute now or hereafter in effect, or a custodian, receiver, trustee, or assignee for the benefit of creditors (or other similar official)
is appointed to take possession, custody or control of any property of the Company)
(iv) The
Company shall fail to observe or perform any other covenant or agreement contained in this Note or any transaction document which failure
is not cured, if possible to cure, within ten (10) days after the Company has received notice of such failure from Holder or otherwise
has become aware of such failure; or
(v) Any
representation or warranty made in this Note, any other transaction document, any written statement pursuant hereto or thereto or any
other report, financial statement or certificate made or delivered to the Holder shall be untrue or incorrect in any material respect
as of the date when made or deemed made, which failure is not cured, if possible to cure, within ten (10) days after the Company has
received notice of such failure from Holder or otherwise has become aware of such failure.
(b) In
the event of any Event of Default hereunder, the Company shall pay all reasonable attorneys’ fees and court costs incurred by the
Holder in enforcing and collecting this Note and the Interest Rate shall be increased to fifteen percent (15%) during the continuance
of the Event of Default.
4. Miscellaneous
Provisions.
(a) Waivers.
The Company hereby waives demand, notice, presentment, protest and notice of dishonor.
(b) Further
Assurances. The Holder agrees and covenants that at any time and from time to time the Holder will promptly execute and deliver to
the Company such further instruments and documents and take such further action as the Company may reasonably require in order to carry
out the full intent and purpose of this Note and to comply with state or federal securities laws or other regulatory approvals.
(c) Transfers
of Note. This Note may be transferred only upon its surrender to the Company for registration of transfer, duly endorsed, or accompanied
by a duly executed written instrument of transfer in a form satisfactory to the Company. Thereupon, this Note shall be reissued to, and
registered in the name of, the transferee, or a new Note for like principal amount and interest shall be issued to, and registered in
the name of, the transferee. Interest and principal shall be paid solely to the registered holder of this Note. Such payment shall constitute
full discharge of the Company’s obligation to pay such interest and principal.
(d) Amendment
and Waiver. Any term of this Note may be amended or waived only in a writing signed by both the Company and the Holder.
(e) Governing
Law. This Note shall be governed by and construed under the laws of the State of Nebraska, as applied to agreements among Nebraska
residents, made and to be performed entirely within the State of Nebraska, without giving effect to conflicts of laws principles.
(f) Binding
Agreement. The terms and conditions of this Note shall inure to the benefit of and be binding upon the respective successors and
assigns of the parties. Nothing in this Note, expressed or implied, is intended to confer upon any third party any rights, remedies,
obligations or liabilities under or by reason of this Note, except as expressly provided in this Note.
(g) Counterparts;
Manner of Delivery. This Note may be executed in two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including
pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act or other applicable
law) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid
and effective for all purposes.
(h) Titles
and Subtitles. The titles and subtitles used in this Note are used for convenience only and are not to be considered in construing
or interpreting this Note.
(i) Notices.
All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (i) upon personal delivery
to the party to be notified, (ii) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the
recipient, if not, then on the next business day, (iii) five days after having been sent by registered or certified mail, return
receipt requested, postage prepaid, or (iv) one day after deposit with a nationally recognized overnight courier, specifying next
day delivery, with written verification of receipt. All communications to a party shall be sent to the party’s address set forth
on the signature page hereto or at such other address(es) as such party may designate by 10 days’ advance written notice to the
other party hereto.
(j) Expenses.
The Company and the Holder shall each bear its respective expenses and legal fees incurred with respect to the negotiation, execution
and delivery of this Note and the transactions contemplated herein.
(k) Delays
or Omissions. It is agreed that no delay or omission to exercise any right, power or remedy accruing to the Holder, upon any breach
or default of the Company under this Note shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any
such breach or default, or any acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver
of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. It is further
agreed that any waiver, permit, consent or approval of any kind or character by the Holder of any breach or default under this Note,
or any waiver by the Holder of any provisions or conditions of this Note, must be in writing and shall be effective only to the extent
specifically set forth in writing and that all remedies, either under this Note, or by law or otherwise afforded to the Holder, shall
be cumulative and not alternative. This Note shall be void and of no force or effect in the event that the Holder fails to remit the
full principal amount to the Company within five calendar days of the date of this Note.
(l) Entire
Agreement. This Note constitutes the full and entire understanding and agreement between the parties with regard to the subjects
hereof, and no party shall be liable or bound to any other party in any manner by any representations, warranties, covenants and agreements
except as specifically set forth herein.
(m) Exculpation.
The Holder acknowledges that the Holder is not relying on any person, firm or corporation, other than the Company and its officers and
the Committee and board members, in making its investment or decision to invest in the Company.
[Signature
pages follow]
The
parties have executed this 20% Original Issue Discount Promissory Note as of the
date first noted above.
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COMPANY: |
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CleanCore
Solutions, Inc. |
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By: |
/s/
David Enholm |
|
|
Name: |
David
Enholm |
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Title: |
Chief Financial
Officer |
SIGNATURE
PAGE TO
20%
OID PROMISSORY NOTE
The
parties have executed this 20% Original Issue Discount Promissory Note as of the
date first noted above.
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HOLDER (if
an entity): |
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Name of Holder: |
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By: |
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Title: |
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E-mail: |
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Address: |
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HOLDER (if
an individual): |
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Name of Holder: |
Travis
Buchanan |
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Signature: |
/s/ Travis
Buchanan |
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E-mail: |
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Address: |
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SIGNATURE
PAGE TO
20%
OID PROMISSORY NOTE
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CleanCore Solutions (AMEX:ZONE)
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