Exhibit
10.1


 


 LOAN
MODIFICATION AGREEMENT


 


	BORROWER	 	LENDER	 	LOAN
    NUMBER
	Greenkraft
                                         Inc., a California corporation

        2530
        South Birch Street Santa Ana, CA 92707
	 	Pacific
                                         Premier Bank

        17901
        Von Karman Ave., Suite 1200 Irvine, CA 92614

        (949)
        864-8000
	 	56-800308-15


 


 


THIS
LOAN MODIFICATION AGREEMENT (the "Agreement") is made as of July 24, 2014, by and among Greenkraft Inc., a California
corporation ("Borrower") and Pacific Premier Bank ("Lender") with reference to the following facts;


 


A.Borrower
entered into a loan (the "Loan") evidenced by a Promissory Note dated March 13, 2012, payable to Lender in the original
principal amount of Three Million Five Hundred Thousand Dollars ($3,500,000.00) (the "Note"). The Loan has been modified
in accordance with those certain Loan Modification Agreements dated May 10, 2013, July 15, 2013, and December 26, 2013 (the "Prior
Modifications").


 


B.The
Note is secured by, among other things, a Deed of Trust dated March 13, 2012 ("Deed of Trust") and two Commercial Security
Agreements each dated March 13, 2012 (the "Security Agreements"). The Loan is also subject to a Business Loan Agreement
dated March 13, 2012 (the "Business Loan Agreement").


 


C.Repayment
of the Note is guaranteed by C.E.E., LLC; First Standard Real Estate, LLC; The Gemayel Family Trust dated May 18, 2007; George
Gemayel; Greenkraft, Inc., a Nevada corporation (collectively, "Guarantors"),


 


D.Borrower
is also indebted to George Gemayel ("Subordinated Creditor"). In the Subordination Agreement dated March 13, 2012 (the
"Subordination Agreement"), Subordinated Creditor subordinated the indebtedness Borrower owes to him to the indebtedness
Borrower owes to Lender.


 


E.The
Note, Deed of Trust, Security Agreements, Business Loan Agreement, Prior Modifications and all other loan documents given to Lender
either evidencing the Loan or to induce Lender to make or modify the Loan are referred to collectively as the "Loan Documents".


 


F.Insofar
as the Loan Documents do not prohibit certain modifications upon written agreement between the parties,
the parties hereby agree to modify the terms of the Loan subject to the terms and conditions of this Agreement.


 


NOW,
THEREFORE, in consideration of the promises herein contained, the parties hereto agree as follows:


 


1.One-Time
Forbearance. In the Loan Documents, Borrower promised and covenanted that it would maintain (a) a minimum Global Debt
Coverage Ratio of not less than 1.250 to 1.000 (the "Global DCR Covenant"), (b) a minimum Business Debt Coverage Ratio
of not less than 1.250 to 1.000 (the "Business DCR Covenant), (c) a ratio of Debt / Worth not in excess of 3.000 to 1.000
(the "Debt / Worth Covenant), and (d) a Tangible Net Worth of not less than $350,000 (the "Tangible Net Worth Covenant")
(collectively the "Covenants"). Borrower is in breach of the Covenants (collectively the "Covenant Violations").
Lender agrees to forbear enforcement of its rights arising out of the Covenant Violations until Lender's receipt of Borrower's
December 31, 2014 financial statements (the "Forbearance"). Borrower acknowledges that the Forbearance is granted by
Lender on a one-time basis and that Lender reserves the right to withhold its consent to any future request that Lender forbear
or refrain from enforcement of the Covenants. Nothing herein shall be construed as a waiver of Lender's right to strictly enforce
the Covenants on and after Lender's receipt of Borrower's December 31, 2014 financial statements.


 


2.Loan
Modification. The Note and other Loan Documents are hereby amended as follows:


 


   2.1Maturity
Date. The maturity date of the Note is hereby extended to June 10, 2015 (the "Maturity Date").
Borrower will continue to pay regular monthly payments of all accrued unpaid interest due as of each payment date until the Maturity
Date. On the Maturity Date, Borrower will pay the Loan in one payment of all outstanding principal plus all accrued unpaid
interest and all other amounts owed under the Note.


 


   2.2Line
Freeze. Without limiting any other condition for advances as set forth in the Loan Documents,
Borrower shall have the ability to access or otherwise receive advances against the Loan
until the Loan has reached an outstanding principal balance of Two Million Dollars ($2,000,000.00)
("Credit Line Limit"). Borrower shall have no right Borrower in writing, signed by the Lender, stating
that the Loan has been unfrozen or is otherwise available for additional advances beyond the Credit Line Limit.






    	 



    	 



    

 


Loan
No. 56-800308-15


 


   2.3Additional
Guarantor. In addition to the personal guaranty of Guarantors, payment and performance under
the Note and other Loan Documents shall be guaranteed by First Industrial Properties, LLC, a California limited liability company
("Additional Guarantor"), all as more particularly described in the Commercial Guaranty dated July 24, 2014 (the "Additional
Guaranty").


 


In
all other respects, Borrower acknowledges and agrees that all terms, conditions and provisions of the Loan Documents are continued
in full force and effect, except as specifically set forth above, and remain unaffected and unchanged. This Agreement in no way
acts as a release or relinquishment of, and in no way affects, the liens, security interests and rights created by or arising
under the Deed of Trust, the Security Agreements and the Loan Documents, or the priority thereof. Such liens, security interests
and rights are hereby ratified, confirmed, renewed and extended in all respects.


 


3.Full
Force and Effect. The Loan Documents, any other security for payment of the Note, and all rights, remedies, titles, liens
and equities securing the Note as hereby modified and the indebtedness represented thereby are hereby recognized, renewed, extended
and continued in full force and effect for the benefit of the holder of the Note and the indebtedness evidenced thereby.


 


4.Warranties,
Representations and Agreements.


 





   4.1Borrower
hereby ratifies, confirms, acknowledges and agrees that the Loan Documents represent
valid, enforceable and collectible obligations of Borrower and that there are no existing
claims, defenses, personal or otherwise, or rights of setoff whatsoever with respect to any of such documents or instruments.
Borrower further acknowledges and represents that no event has occurred and no condition exists which would constitute a default
under any of the Loan Documents or this Agreement, either with or without notice or lapse of time or both.


 


5.Release
and Waiver of Claims. In consideration of Lender's agreement to enter into this Agreement, Borrower hereby agrees as follows:


 


   5.1Release
of All Claims. Borrower, on behalf of itself, its general partners, its members, its officers, its
affiliates and its and their successors and assigns (collectively, the "Releasing Parties"), hereby releases and forever
discharges Lender and all of its subsidiaries, affiliates, officers, directors, employees, agents, attorneys, advisors, and its
and their successors and assigns (collectively, the "Released Parties") from any and all claims, demands, debts, liabilities,
contracts, obligations, accounts, torts, causes of action or claims for relief of whatever kind or nature, whether known or unknown,
whether suspected or unsuspected, which the Releasing Parties may have or which may hereafter be asserted or accrue against Released
Parties, or any of them, resulting from or in any way relating to any act or omission done or committed by Released Parties, or
any of them, arising directly or indirectly out of the Loan, the Loan Documents, the transactions evidenced or contemplated thereby,
the Deed of Trust, the Security Agreements; the approval, the origination, the funding and the closing of the Loan; the review,
approval, or disapproval of any and all documents, instruments, insurance and all other items submitted to Lender in connection
with the Loan; the disbursements of funds under the Loan; the modification of the Loan made pursuant to this Agreement; Lender's
acts, statements, conduct, representations and omissions made in connection with the modification of the Loan, including, without
limitation, the terms and conditions of this Agreement; any fact, matter, transaction or event relating thereto; or the relationships
existing or transactions or dealings occurring between Lender and Borrower up to and as of the date of this Agreement (the "Claims").


 


   5.2Release
Includes Unknown Claims. The release described in the immediately preceding paragraph and
in this paragraph applies to all Claims which the Releasing Parties have or which may hereafter arise against the Released Parties,
or any of them, as a result of acts or omissions occurring before the date of this Agreement, whether or not known or suspected
by the Parties hereto. Borrower expressly acknowledges that, although it may be that ordinarily a general release does not extend
to claims which the releasing party does not know or suspect to exist in his favor, which if known by him must have materially
affected his settlement with the party released, it has carefully considered and taken into account in determining to enter into
this Agreement the possible existence of such unknown losses or Claims.






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Loan
No. 56-800308-15


 


Without
limiting the generality of the foregoing, Borrower expressly waives any and all rights conferred upon it by any statute or rule
of law which provides that a release does not extend to claims which the releasing party does not know or suspect to exist in
the releasing party's favor at the time of executing the release, which if known by the releasing party must
have materially affected the releasing party's settlement with the released party, including, without limitation, the following
provisions of California Code of Civil Procedure Section 1542:


 


"A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME
OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR."


 


   5.3Complete
Defense. This release by Releasing Parties shall constitute a complete defense to any claim, cause of action, defense, contract,
liability, indebtedness, obligation, liability, claim or cause of action exists which is within the scope of those hereby released.


 


   5.4No
Reliance. Borrower hereby acknowledges that it has not relied upon any representation of any
kind made by Lender in making the foregoing release.


 


6.Conditions
Precedent to this Agreement. This Agreement is contingent upon the satisfaction of the following conditions precedent:


 


   6.1Lender
shall have received a certified resolution from Borrower authorizing (i) its modification of
the Loan pursuant to this Agreement, and (ii) the execution and delivery of this Agreement by the person(s) signing the same on
behalf of Borrower;


 


   6.2Borrower
shall have signed and delivered this Agreement to Lender;


 


   6.3Additional
Guarantor shall have signed and delivered to Lender the Additional Guaranty in the form
prepared by Lender;


 


   6.4Guarantors,
Subordinated Creditor, and Grantor shall have signed and delivered to Lender the consents
and reaffirmations attached to this Agreement;


 


   6.5The
Trustor of the Deed of Trust shall have signed and delivered to Lender the consent and reaffirmation
attached to this Agreement and the Modification of Deed of Trust in the form attached hereto as Exhibit "A";


 


   6.6Lender
shall have received a new ALTA Lender's policy of title insurance and all endorsements thereto required by Lender (collectively,
the "Title Policy") or CLTA Endorsements No. 110.5 modified, or equivalent (collectively, the "Endorsement")
from a title company approved by Lender. Borrower shall have paid all casts in connection with the Title Policy and/or Endorsement,
and all recording fees; and


 


   6.7Borrower
shall have paid Lender an extension fee of $2,500.


 


7.General.


 


   7.1Borrower
shall execute such additional documents as Lender may require to fully effectuate the
intent of this Agreement.


 


   7.2If
any action, suit or other proceeding is brought to enforce the obligations of the undersigned under
this Agreement, the prevailing party shall be entitled to receive all of such party's costs and expenses of suit,
including attorneys' fees, incurred in each and every such action, suit or other proceeding, including any and all appeals or
petitions therefrom.


 


As
used in this Agreement, attorneys' fees shall mean the full and actual cost of any legal services actually performed in connection
with the matters involved, calculated on the basis of the usual fee charged by the attorneys performing such services and shall
not be limited to "reasonable attorneys' fees" as defined in any statute or rule of court.


 


   7.3This
Agreement may be executed in counterparts, all of which taken together shall constitute one instrument. 


 



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Loan
No. 56-800308-15


 


8.Satisfaction
of Conditions. If the conditions precedent set forth in this Agreement are not satisfied on or before July 31, 2014, Lender
may, at its sole option, declare this Agreement null and void, in which case this Agreement shall have no further force or effect.
Lender's waiver of any of the conditions precedent shall not constitute a waiver of the other conditions precedent.


 


IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date set forth above.


 


BORROWER:


 


GREENKRAFT
INC., A CALIFORNIA CORPORATION


 


	By:	/s/ George
    Gemayel	 	By:	/s/ Sosi
    Bardakjian
	 	George Gemayel, President
        of Greenkraft Inc.,

        a California corporation
	 	 	Sosi Bardakjian, Secretary
        of Greenkraft Inc.,

        a California corporation




 


LENDER:


 


PACIFIC
PREMIER BANK


 





	By:	/s/ Chris
    Porcelli	 		 
	 	Chris Porcelli, SVP/Senior Credit Manager of Pacific Premier
    Bank	 	 	


 


[CONSENTS
AND REAFFIRMATIONS APPEAR ON THE FOLLOWING PAGE(S)]




 


 


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