Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 50

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part I, Item 1
Chunk 50
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 not in the possession of the Company; any inventory which
was held by the Company on property leased by the Company unless Salem Five Cents had received a Landlord’s Waiver and Consent
from the lessor of such property satisfactory to Salem Five Cents; any inventory which was not located within the United States; any
inventory which Salem Five Cents reasonably deemed to be obsolete or non-marketable; and any inventory not subject to a first priority
fully perfected lien held by Salem Five Cents.

The Revolving Line of Credit was subject to interest
at the prime rate plus 0.5% per annum. The Company was required to repay interest on the Revolving Line of Credit proceeds on a monthly
basis. The Revolving Line of Credit continued indefinitely, subject to Salem Five Cents’ demand rights and the Company’s
ongoing affirmative and other obligations under the Loan Documents, as summarized below.

34

The Company could freely draw upon the Revolving
Line of Credit subject to Salem Five Cents’ right to demand complete repayment of the Revolving Line of Credit at any time. Late
payments were subject to a late payment charge of 5.0%. In the event of failure to repay the loan after Salem Five Cents made demand
for full repayment, the interest rate would increase by 10.0%. The Demand Note could be prepaid at any time without penalty. Salem Five
Cents could assign the Demand Note without the Company’s consent.

Under the Security Agreement and the other Loan
Documents, the Company granted Salem Five Cents a first priority security interest in all of its assets, including both assets owned
as of the date of the Revolving Line of Credit and afterwards, as collateral for full repayment of the Revolving Line of Credit. Salem
Five Cents had the right to file Uniform Commercial Code financing statements with any jurisdiction and with sufficient descriptions
of the property to perfect its security interest in all of the Company’s current and future assets. Upon default of the Revolving
Line of Credit, Salem Five Cents could accelerate repayment of the Revolving Line of Credit, take possession of the Company’s assets,
assign a receiver over the Company’s assets, and enforce other rights as to the Company’s assets as secured creditor. The
Company was required to pay for all of Salem Five Cents’s reasonable legal fees and expenses incurred to enforce its rights under
the Loan Documents.

Under the Initial Loan Agreement, the Company
was required to continue its current business of outsourced marketing solutions,