Company: SWAGW
Filing Date: 2025-04-14
Form Type: 10-K
Source: 0001213900-25-031596
Chunk: 1392

Company: Stran & Company, Inc.
Filing Date: 2025-04-14
Form: 10-K
Item: Item 7
Chunk 1392
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 been returned by a customer or was damaged or subject to any legal encumbrances other than a first
priority security interest held by the Company; any inventory which was 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.

48

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.

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