Company: MGLD
Filing Date: 2025-09-19
Form Type: 10-K
Source: 0001493152-25-014286
Chunk: 115

Company: Marygold Companies, Inc.
Filing Date: 2025-09-19
Form: 10-K
Item: Item 1
Chunk 115
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ary Trust Company) eligible;
or (n) we breach any covenant or agreement in any other agreement with Holder or in any financing or other agreement that affects our
ongoing business operations. A “fundamental transaction” occurs if: we merge with another entity; we dispose of all or substantially
all of our assets, we allow more than 50% of our voting shares to be acquired by another person; we enter into a share purchase agreement
with a third party that acquires more than 50% of our shares; we recapitalize or reclassify our shares; we transfer a material asset
to a subsidiary; we pay a dividend to our shareholders; or any person or group becomes the beneficial owner of 50% of the ordinary voting
power of our shares. Upon the occurrence of a trigger event, the Holder may increase the amount outstanding under a Note by 10% for an
event described in (a) through (h) above or 5% for an event described in (i) through (n) above (a “default amount”). Alternatively,
the Holder may treat the trigger event as an event of default and demand repayment of the Note, subject to a five-day cure period, together
with any applicable default amount.

The
Company’s obligations under the Note are secured by: (i) a pledge of all the common stock the Company owns in USCF Investments,
Inc. and (ii) a security interest in all of the assets of the Company. Further, the Company’s Chief Executive Officer’s trust,
the Nicholas and Melinda Gerber Living Trust (“Gerber Trust”), provided: (i) a guaranty of the Company’s obligations
to the Holder under the Note and (ii) a pledge of all of the common stock of the Company owned by the Gerber Trust.

Beginning
on the date that is six months from the issuance date until the applicable Note is paid in full, each month the Holder has the right
to require the Company to redeem up to an aggregate of $400,000 with respect to the Initial Note and $200,000 with respect to the Subsequent
Note plus any interest accrued thereunder and an additional amount payable equal to 6% of the principal amount and accrued interest redeemed.
The Company has the right to defer such redemption payments that Holder could otherwise elect to make three times by providing advance
written notice to Holder. If Company exercises its deferral right, the outstanding balance automatically increases by 0.85% for each
instance that the def