Company: SWAGW
Filing Date: 2025-04-07
Form Type: 8-K/A
Source: 0001213900-25-029436
Chunk: 3

Company: Stran & Company, Inc.
Filing Date: 2025-04-07
Form: 8-K/A
Chunk 3
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 a wholly-owned subsidiary of the Purchaser.

The Sale Agreement contains an avoidance claim
provision acknowledging that, prior to the Closing, Secured Party will have given Bangarang credit for Secured Party’s receipt of
payment instruments that, on or after the date of the Closing (the “Closing Date”), (i) may not clear or may be rescinded
by the bank for insufficient funds, stop payment, or the like (a “Returned Item”), or (ii) may be sought to be recovered from
Secured Party on the assertion that such payment is avoidable under the Bankruptcy Code or under state law as a preference, fraudulent
transfer, or otherwise (“Avoidance Claim”), and that, but for the transactions contemplated by the Sale Agreement, Secured
Party would have been able to look to the accounts factored by Secured Party under the Factor Purchase Agreement (as defined by the Sale
Agreement) for reimbursement or recovery of losses attendant to such Returned Items or Avoidance Claims. In light of the foregoing, Secured
Party and the Purchaser agreed as follows: (a) In the event any of the payments, received by Secured Party and credited to Bangarang’s
indebtedness as of the Closing Date, become a Returned Item on or after the Closing Date, Secured Party will notify the Purchaser, and
the Purchaser will promptly remit funds to reimburse Secured Party for the Returned Item; and (b) in the event any of the payments received
by Secured Party and/or credited to Bangarang’s indebtedness as of the Closing Date are recoverable as a result of an account debtor
bankruptcy that occurs within ninety (90) days of any such payment having been made, the Purchaser will pay to Secured Party, on demand
in writing, the amount of such Avoidance Claim. Additionally, the Purchaser shall indemnify and hold Secured Party harmless from and against
any out-of-pocket loss, liability, claim, damage or expense, including reasonable attorneys’ fees incurred (including those incurred
at all trial and appellate levels) arising out of or relating to any Avoidance Claim. The Sale Agreement also provides that, commencing
after the Closing Date, all sums standing to the credit of Bangarang with Secured Party as of the Closing Date, including any unpaid purchase
price with respect to all outstanding factored accounts, will be paid over by Secured Party as and when payable under the terms of the
Factor