Company: SWAGW
Filing Date: 2025-02-11
Form Type: 10-Q
Source: 0001213900-25-011872
Chunk: 263

Company: Stran & Company, Inc.
Filing Date: 2025-02-11
Form: 10-Q
Item: Part II, Item 8
Chunk 263
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 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, 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; 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