Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 831

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 3
Chunk 831
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 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, and, without the
prior consent of Salem Five Cents, the Company could not acquire in whole or in part any other company or business or engage in any other
business or open any other locations. The Company was required to use the proceeds of the Revolving Line of Credit only in connection
with the general and ordinary operations of its business and for the following purpose: general working capital for accounts receivable
and inventory purchases.

The Revolving
Line of Credit was also subject to ongoing affirmative obligations of the Company, including: Making punctual repayment of the Revolving
Line of Credit amount; maintaining proper accounting books and records in accordance with the opinion of LMHS, P.C. or another Certified
Public Accountant acceptable to Salem Five Cents; allowing Salem Five Cents to inspect its accounting books and records; furnishing audited,
quarterly, monthly and other financial statements to Salem Five Cents; prior to the date of the Loan Modification Agreement, making payment
of Salem Five Cents’ reasonable expenses for a field exam in 2022; and following the date of the Loan Modification Agreement, making
payment of Lender’s reasonable expenses for a field exam in 2024; allowing Salem Five Cents to communicate with its accountants; maintaining
its properties in good repair subject to ordinary wear and tear; obtaining replacement-cost insurance for its property with Salem Five
Cents as Mortgagee/Loss Payee; causing management contracts for the Company’s properties to be subordinated to the rights of Salem
Five Cents; and allowing no change of property management company without the prior written consent of Salem Five Cents