Document:

Exhibit 10.2
FIRST ALLONGE TO SECOND AMENDED AND RESTATED
REVOLVING CREDIT LOAN NOTE
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THIS FIRST ALLONGE TO SECOND AMENDED AND RESTATED REVOLVING CREDIT LOAN NOTE (hereinafter referred to as this “Allonge”) is made this 31st day of August, 2020, by and among WAYSIDE TECHNOLOGY GROUP, INC., a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware (hereinafter referred to as “Wayside”), CLIMB CHANNEL SOLUTIONS, INC. f/k/a Lifeboat Distribution, Inc., a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware (hereinafter referred to as “Climb Channel Solutions”), TECHXTEND, INC., a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware (hereinafter referred to as “Techxtend”), PROGRAMMER’S PARADISE, INC., a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware (hereinafter referred to as “Programmer’s Paradise”), ISP INTERNATIONAL SOFTWARE PARTNERS, INC., a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware (hereinafter referred to as “ISP”, and hereinafter Wayside, Climb Channel Solutions, Techxtend, Programmer’s Paradise, and ISP shall be collectively referred to as the “Existing Co-Borrowers”), INTERWORK TECHNOLOGIES INC., a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware (hereinafter referred to as “Interwork” and hereinafter the Existing Co-Borrowers and Interwork shall be collectively referred to as the “Co-Borrowers”) and CITIBANK, N.A., a national banking association (hereinafter referred to as the “Lender”).
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W I T N E S S E T H :
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WHEREAS, pursuant to the terms, conditions, and provisions of that certain Second Amended and Restated Revolving Credit Loan Agreement dated November 15, 2017 (hereinafter referred to as the “Original Loan Agreement”), executed by and among the Existing Co-Borrowers, as co-borrowers, and the Lender, as lender, the Lender made available to the Existing Co-Borrowers a secured electronic line of credit loan facility in the maximum principal amount of up to $20,000,000.00 (hereinafter referred to as the “Loan Facility”); and
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WHEREAS, the Loan Facility is evidenced by that certain Second Amended and Restated Revolving Credit Loan Note dated November 15, 2017, executed by the Existing Co-Borrowers, on a joint and several basis, as co-borrowers, in favor of the Lender, as lender, in the maximum principal amount of up to $20,000,000.00 (hereinafter referred to as the “Note”); and
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WHEREAS, pursuant to the terms, conditions, and provisions of that certain First Amendment to Second Amended and Restated Revolving Credit Loan Agreement and Other Loan Documents, dated of even date herewith (hereinafter referred to as the “First Amendment”), the Co-Borrowers and the Lender agreed to amend and modify the Original Loan Agreement (hereinafter the Original Loan Agreement, as amended by the First Amendment shall be referred to as the “Loan Agreement”) for the purposes more particularly set forth therein including, without limitation, (i) to join Interwork as a co-borrower on a joint and several basis with the Existing Co-Borrowers and (ii) to amend the governing law applicable to the Loan Agreement and the other “Loan Documents” (as such term is defined in the Loan Documents) such that the laws of the State of New York shall govern and control the Loan Agreement and the other Loan Documents; and
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WHEREAS, in connection with the execution of the First Amendment, the Co-Borrowers have requested that the Lender, and the Lender has agreed to, amend and modify the Note for the purposes more particularly set forth and described in this Allonge; and
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WHEREAS, capitalized terms used in this Allonge, but not otherwise expressly defined herein, shall have the meanings when used herein as assigned and ascribed to such terms in the Loan Agreement.
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NOW, THEREFORE, in consideration of the mutual benefits inuring to the Co-Borrowers and the Lender and intending to be legally bound hereby, the Note is hereby amended and modified as follows:
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1.          Joinder of Interwork as a Co-Borrower.
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(i)          Interwork hereby becomes a Co-Borrower under the terms of the Note, as amended by this Allonge, and, in consideration of the value of the synergistic and other benefits received by Interwork as a result of being or becoming a Co-Borrower, Interwork hereby agrees that, effective as of the date hereof, it hereby is, and shall be deemed to be, and assumes the obligations of, a “Co-Borrower” on a joint and several basis with the Existing Co-Borrowers under the Note, as amended by this Allonge, and Interwork hereby agrees that from and after the date hereof, and so long as any Loan or any commitment of any Lender shall remain outstanding and until the indefeasible repayment in full of the Loans, the performance of all other obligations of the Co-Borrowers under the Loan Documents, and the termination of the Lender’s commitment to make Loans to the Co-Borrowers, Interwork shall perform, comply with, and be subject to and bound by each of the terms and provisions of the Note, as amended by this Allonge, on a joint and several basis with the Existing Co-Borrowers.  Without limiting the generality of the foregoing, Interwork hereby represents and warrants that (a) each of the representations and warranties set forth in the Note applicable to an Existing Co-Borrower is true and correct as to Interwork on and as of the date hereof and (b) Interwork has heretofore received a true and correct copy of the Note in effect on and as of the date hereof.
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(ii)         Interwork hereby makes, affirms, and ratifies in favor of the Lender, the Note, as amended by this Allonge.
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(iii)       In furtherance of the foregoing, Interwork shall execute and deliver or cause to be executed and delivered at any time and from time to time such further instruments and documents and do or cause to be done such further acts as may be reasonably necessary in the reasonable opinion of the Lender to carry out more effectively the terms, conditions, and provisions of this Paragraph 1.
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2.          Amendments to Note.  The Note is hereby amended and modified as follows:
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(i)          The reference to the “laws of the State of New Jersey” in the paragraph of the Note which reads “This Note and the rights and obligations of the parties hereunder shall be construed, interpreted, enforced and governed by the laws of the State of New Jersey, excluding the laws applicable to conflicts and choice of laws” is hereby deleted in its entirety and a new reference to “laws of the State of New York” is hereby inserted in its place and stead.
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(ii)         Any and all references to any of the Loan Documents contained in the Note are hereby deemed to refer to such Loan Document, as amended and modified up through this Allonge, the First Amendment, and the other documents executed in connection herewith and therewith.
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3.          Modification of Note.  The Note, as amended and modified by this Allonge, is the “Note” referred to in the Original Loan Agreement and the documents relating thereto.  All other provisions of the Note shall not be amended and modified hereby except as expressly set forth herein.
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4.          Construction.  Any capitalized terms used in this Allonge not otherwise defined herein shall have the meaning set forth in the Loan Agreement.
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5.          Single Instrument.  The Co-Borrowers hereby direct the Lender to affix this Allonge to the Note, whereupon the Note, as amended and modified by this Allonge all shall become and constitute a single instrument.
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6.          No Novation.  It is the intention of the parties hereto that this Allonge shall not constitute a novation, nor shall it in any way adversely affect or impair the lien priority of the Loan Documents.
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7.          Additional Documents; Further Assurances. The Co-Borrowers hereby covenant and agree to execute and deliver to the Lender, or to cause to be executed and delivered to the Lender contemporaneously herewith, at the Co-Borrowers’ sole cost and expense, any and all other documents, agreements, statements, resolutions, certificates, opinions, consents, searches, and information as the Lender may reasonably request in connection with the matters or actions described herein.  The Co-Borrowers hereby further covenant and agree to execute and deliver to the Lender, or to use reasonable efforts to cause to be executed and delivered to the Lender, at the Co-Borrowers’ sole cost and expense, from time to time, any and all other documents, agreements, statements, certificates, and information as the Lender shall reasonably request to evidence or effect the terms of the Loan Documents, or to enforce or protect the Lender’s interest in the collateral described in the Loan Documents.  All such documents, agreements, statements, etc., shall be in form and content reasonably acceptable to the Lender.
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8.          No Waiver.  Nothing contained herein constitutes an agreement or obligation by the Lender to grant any further amendments to any of the Loan Documents, and nothing contained herein constitutes a waiver or release by the Lender of any rights or remedies available to the Lender under the Loan Documents, at law or in equity.
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9.          Binding Effect; Governing Law.  This Allonge shall be binding upon and inure to the benefit of the parties hereto and their respective successors and/or assigns.  This Allonge shall be governed by and construed in accordance with the laws of the State of New York (excluding, however, conflict of laws principles).
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10.        Counterparts.  This Allonge may be executed in any number of counterparts, each of which, when taken together, shall be deemed one and the same instrument.
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IN WITNESS WHEREOF, the Lender and the Co-Borrowers have duly executed and delivered this Allonge, all as of the day and year first above written.
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	CO-BORROWERS:

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	WAYSIDE TECHNOLOGY GROUP, INC., a Delaware corporation

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	By: 
	/s/ Michael Vesey

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	Michael Vesey

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	Chief Financial Officer

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	CLIMB CHANNEL SOLUTIONS, INC., a Delaware corporation, f/k/a Lifeboat Distribution, Inc.

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	By:
	/s/ Michael Vesey

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	Michael Vesey

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	Chief Financial Officer

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	TECHXTEND, INC., a Delaware corporation

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	By:
	/s/ Michael Vesey

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	Michael Vesey

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	Chief Financial Officer

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	PROGRAMMER’S PARADISE, INC., a Delaware corporation

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	By:
	/s/ Michael Vesey

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	Michael Vesey

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	Chief Financial Officer

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	ISP INTERNATIONAL SOFTWARE PARTNERS, INC., a Delaware corporation

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	By:
	/s/ Michael Vesey

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	Michael Vesey

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	Chief Financial Officer

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	INTERWORK TECHNOLOGIES INC., a Delaware corporation

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	By: 
	/s/ Michael Vesey

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	Michael Vesey

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	Chief Financial Officer

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	LENDER:

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	CITIBANK, N.A.

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	By:
	/s/ James R. Earnest

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	James R. Earnest

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	Director

​Exhibit 4.1

 

GLOBAL AMENDMENT

 

This Global Amendment (this “Amendment”) is entered into as of September 1, 2020 by and among Chicago Venture Partners, L.P., a Utah limited partnership (“Lender”), Napo Pharmaceuticals, Inc., a Delaware corporation (“Napo”), and Jaguar Health, Inc., a Delaware corporation (“Jaguar”, and together with Napo, “Borrower”). Capitalized terms used in this Amendment without definition shall have the meanings given to them in the Note (as defined below).

 

A.            Pursuant to an Exchange Agreement dated May 28, 2019, Borrower previously issued to Lender a certain Secured Promissory Note with an original issuance date of July 31, 2017 and an exchange date of May 28, 2019 in the original principal amount of $2,296,926.16 (the “Note”).

 

B.            Lender and Borrower have agreed, subject to the terms, amendments, conditions and understandings expressed in this Amendment, to amend the Note as set forth herein.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1.             Recitals. Each of the parties hereto acknowledges and agrees that the recitals set forth above in this Amendment are true and accurate and are hereby incorporated into and made a part of this Amendment.

 

2.             Extension of Maturity Date. Lender and Borrower hereby agree that the Maturity Date of the Note is hereby extended to December 31, 2021 (the “Extension”). In consideration of Lender’s grant of the Extension, its fees incurred in preparing this Amendment and other accommodations set forth herein, Borrower agrees to pay to Lender an extension fee (the “Initial Extension Fee”) equal to five percent (5%) of the Outstanding Balance of the Exchange Note on the date hereof. The Initial Extension Fee is hereby added to the Outstanding Balance of the Note as of the date of this Amendment. Lender and Borrower further agree that the Initial Extension Fee is deemed to be fully earned as of the date hereof, is nonrefundable under any circumstance, and that the Initial Extension Fee tacks back to the date of the Note for Rule 144 purposes. Borrower represents and warrants that as of the date hereof the Outstanding Balance of the Note, following the application of the Initial Extension Fee, is $2,741,935.97.

 

3.             No Payment of Principal. So long as any shares of Jaguar’s Series D Preferred Stock (the “Series D Preferred”) are owned by Lender or any of its affiliates, Borrower will not have the right to repay any outstanding principal on the Note. In the event Borrower attempts to make a payment that includes any principal while any shares of the Series D Preferred are owned by Lender or any of its affiliates, Lender shall have the right to refuse and return such payment to Borrower.

 

4.             Required Payment. Borrower covenants and agrees to repay all accrued and outstanding interest on the Note along with $50,000.00 in principal on or before September 30, 2021 (the “Required Payment”). In the event Borrower fails to make the Required Payment on

 

 

or before September 30, 2021, the Outstanding Balance of the Note will be increased by $750,000.00 (the “Balance Increase”). For the avoidance of doubt, the failure to make the Required Payment shall not be considered an Event of Default. Additionally, in the event Borrower fails to make the Required Payment by September 30, 2021 for any reason, including, but not limited to, Borrower’s inability to make the payment as result of the restriction set forth in Section 3 above, such failure to pay shall still result in the application of the Balance Increase.

 

5.             Note Extensions. In the event the Note is not repaid by the Maturity Date (whether because Borrower is unable to repay the Note due to the restrictions set forth in Section 3 above or the Note is not repaid for any other reason), then the Maturity Date will automatically extend until the end of the next calendar month in exchange for an extension fee equal to seven and one-half percent (7.5%) of the then-current Outstanding Balance (each, a “Subsequent Extension Fee”). The Note will continue to automatically extend and the Subsequent Extension Fees will continue to occur until the earlier of the date the Note is repaid in full or December 31, 2024.  Each Subsequent Extension Fee will be added to the Outstanding Balance unless Lender provides written notice to Borrower electing to have such Subsequent Extension Fee paid in cash within three (3) Trading Days of the automatic extension. Failure to timely make such cash payment will be considered an Event of Default under the Note. For the avoidance of doubt, the automatic extensions described in this Section 5 will continue to occur even if the Note is in default.

 

6.             Consent Right. Beginning on the date hereof, Borrower covenants and agrees that it will not issue any equity which places any restrictions on future issuances of equity or any other financings without the prior written consent of Lender.

 

7.             Representations and Warranties. In order to induce Lender to enter into this Amendment, Borrower, for itself, and for its affiliates, successors and assigns, hereby acknowledges, represents, warrants and agrees as follows:

 

(a)           Borrower has full power and authority to enter into this Amendment and to incur and perform all obligations and covenants contained herein, all of which have been duly authorized by all proper and necessary action. No consent, approval, filing or registration with or notice to any governmental authority is required as a condition to the validity of this Amendment or the performance of any of the obligations of Borrower hereunder.

 

(b)           There is no fact known to Borrower or which should be known to Borrower which Borrower has not disclosed to Lender on or prior to the date of this Amendment which would or could materially and adversely affect the understanding of Lender expressed in this Amendment or any representation, warranty, or recital contained in this Amendment.

 

(c)           Except as expressly set forth in this Amendment, Borrower acknowledges and agrees that neither the execution and delivery of this Amendment nor any of the terms, provisions, covenants, or agreements contained in this Amendment shall in any manner release, impair, lessen, modify, waive, or otherwise affect the liability and obligations of Borrower under the terms of the Note.

 

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(d)           Borrower has no defenses, affirmative or otherwise, rights of setoff, rights of recoupment, claims, counterclaims, actions or causes of action of any kind or nature whatsoever against Lender, directly or indirectly, arising out of, based upon, or in any manner connected with, the transactions contemplated hereby, whether known or unknown, which occurred, existed, was taken, permitted, or begun prior to the execution of this Amendment and occurred, existed, was taken, permitted or begun in accordance with, pursuant to, or by virtue of any of the terms or conditions of the Note. To the extent any such defenses, affirmative or otherwise, rights of setoff, rights of recoupment, claims, counterclaims, actions or causes of action exist or existed, such defenses, rights, claims, counterclaims, actions and causes of action are hereby waived, discharged and released. Borrower hereby acknowledges and agrees that the execution of this Amendment by Lender shall not constitute an acknowledgment of or admission by Lender of the existence of any claims or of liability for any matter or precedent upon which any claim or liability may be asserted.

 

(e)           Except as set forth in Schedule 7(e), Borrower represents and warrants that as of the date hereof no Events of Default or other material breaches exist under the Note or have occurred prior to the date hereof.

 

8.             Certain Acknowledgments. Each of the parties acknowledges and agrees that no property or cash consideration of any kind whatsoever has been or shall be given by Lender to Borrower in connection with any amendment to the Note granted herein.

 

9.             Other Terms Unchanged. The Note, as amended by this Amendment, remains and continues in full force and effect, constitutes legal, valid, and binding obligations of each of the parties, and is in all respects agreed to, ratified, and confirmed. Any reference to the Note after the date of this Amendment is deemed to be a reference to such Note as amended by this Amendment. If there is a conflict between the terms of this Amendment and the Note, the terms of this Amendment shall control. No forbearance or waiver may be implied by this Amendment. Borrower acknowledges that it is unconditionally obligated to pay the remaining balance of the Note and represents that such obligation is not subject to any deductions, defenses, rights of offset, or counterclaims of any kind. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment to, any right, power, or remedy of Lender under the Note, as in effect prior to the date hereof.

 

10.          No Reliance. Borrower acknowledges and agrees that neither Lender nor any of its officers, directors, members, managers, equity holders, representatives or agents has made any representations or warranties to Borrower or any of its agents, representatives, officers, directors, or employees except as expressly set forth in this Amendment and the Note and, in making its decision to enter into the transactions contemplated by this Amendment, Borrower is not relying on any representation, warranty, covenant or promise of Lender or its officers, directors, members, managers, equity holders, agents or representatives other than as set forth in this Amendment.

 

11.          Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument. The parties hereto confirm that any electronic copy of another party’s executed counterpart of this Amendment (or such party’s signature page thereof) will be deemed to be an executed original thereof.

 

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12.          Further Assurances. Each party shall do and perform or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Amendment and the consummation of the transactions contemplated hereby.

 

[Remainder of page intentionally left blank]

 

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IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date set forth above.

 

	
 
    	
LENDER:
    
	
 
    	
 
    
	
 
    	
CHICAGO VENTURE   PARTNERS, L.P.
    
	
 
    	
 
    
	
 
    	
By:   Chicago Venture Management, L.L.C., its General Partner
    
	
 
    	
 
    
	
 
    	
By:   CVM, Inc., its Manager
    
	
 
    	
 
    
	
 
    	
 
    	
By:   
    	
/s/   John M. Fife
    
	
 
    	
 
    	
 
    	
John   M. Fife, President
    
	
 
    	
 
    
	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
JAGUAR HEALTH, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lisa A. Conte
    
	
 
    	
Name:
    	
Lisa A. Conte
    
	
 
    	
Title:
    	
President &   CEO
    
	
 
    	
 
    
	
 
    	
NAPO PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Lisa A. Conte
    
	
 
    	
Name:
    	
Lisa A. Conte
    
	
 
    	
Title:
    	
President &   CEO
    
					

 

[Signature Page to Global Amendment]

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