Document:

EX-10.1

 Exhibit 10.1 

FOURTH AMENDMENT TO 

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 

THIS FOURTH AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (the “Amendment”) is dated August 11, 2014 and is
by and among MEDALLION FINANCIAL CORP., a Delaware corporation having an address of 437 Madison Avenue, New York, New York 10022 (the “Borrower”), MEDALLION FUNDING LLC, a New York limited liability company, with its chief executive
office located at 437 Madison Avenue, New York, New York 10022 (the “Guarantor”), and STERLING NATIONAL BANK, a national banking association having an address of 500 Seventh Avenue, New York, New York 10018 (the
“Bank”). 
 RECITALS 

A. The Borrower, the Guarantor and the Bank entered into an Amended and Restated Loan and Security Agreement dated March 28, 2011 (the
“Original Loan Agreement”), pursuant to which the Bank has agreed to extend certain credit and make certain loans to the Borrower. 

B. The Borrower, the Guarantor and the Bank have amended the Original Loan Agreement pursuant to a First Amendment to Amended and Restated
Loan and Security Agreement dated September 1, 2011 (the “First Amendment”). 
 C. The Borrower, the Guarantor, and the
Bank have further amended the Original Loan Agreement pursuant to a Second Amendment to Amended and Restated Loan Agreement dated January 8, 2013 (the “Second Amendment”). 

D. The Borrower, the Guarantor, and the Bank have further amended the Original Loan Agreement pursuant to a Third Amendment to Amended and
Restated Loan Agreement dated October 23, 2013 (the “Third Amendment”) (the Original Loan Agreement, as amended by the First Amendment, the Second Amendment and the Third Amendment, is collectively referred to herein as the
“Loan Agreement”). 
 E. The Borrower has requested, and the Bank has agreed to amend the Loan Agreement, all as more fully
described herein. 
 NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows: 
 AGREEMENT 

1. Defined Terms. Except as otherwise indicated herein, all words and terms defined in the Loan Agreement shall have the same meanings
when used herein. 
 2. Extension of Facility A Maturity Date. The Facility A Maturity Date is hereby extended to June 30, 2016.
Accordingly, the definition of the term “Facility A Maturity Date” set forth in Section 11 of Annex 2 to the Loan Agreement is hereby amended and restated in its entirety as follows: 

“Facility A Maturity Date: June 30, 2016.” 

 3. Reduction of Maximum Leverage Ratio. The maximum Leverage Ratio, which is currently
6.00 to 1.00, is hereby reduced to 5.00 to 1.00. Accordingly, Section 18(b) of Annex 2 to the Loan Agreement is hereby amended and restated in its entirety as follows: 

“Leverage Ratio. The Borrower shall not permit the Leverage Ratio to be greater than 5.00 to 1.00 at any time.” 

4. Increase of Minimum Tangible Net Worth. The minimum Tangible Net Worth, which is currently $130,000,000, is hereby increased to
$180,000,000. Accordingly, Section 18(h) of Annex 2 to the Loan Agreement is hereby amended and restated in its entirety as follows: 

“Tangible Net Worth. The Borrower shall not permit its Tangible Net Worth to be less than $180,000,000 at any time.” 

5. Increase of Minimum Shareholders’ Equity. The minimum Shareholders’ Equity, which is currently $150,000,000, is hereby
increased to $200,000,000. Accordingly, Section 18(n) of Annex 2 to the Loan Agreement is hereby amended and restated in its entirety as follows: 

“Shareholders’ Equity. The Borrower shall not cause, suffer or permit its Shareholders’ Equity to be less than
$200,000,000 at any time.” 
 6. Amendments to Other Loan Documents. Each of the other Loan Documents is hereby amended to the
extent necessary to reflect the amendment(s) to the terms of the Loan Agreement effected by this Amendment. The Borrower shall take or cause to be taken such actions, and shall execute, deliver, file and/or record or cause to be executed, delivered,
filed and/or recorded such documents and other instruments, as the Bank shall deem to be necessary or advisable in order to confirm, implement or perfect the amendments to the other Loan Documents effected by this Paragraph. 

7. No Defenses. The Borrower acknowledges that, as of August 11, 2014, the aggregate outstanding principal balance under the Facility A
Revolving Loan was $17,500,000.00. The Borrower acknowledges and agrees that, as of the date hereof, it has no offsets, counterclaims or defenses of any nature whatsoever to its Obligations to the Bank under the Loan Agreement or any of the other
Loan Documents, and hereby expressly waives and releases any and all claims against the Bank which exist on the date hereof with respect thereto. 

8. Reaffirmation of Guaranty. In order to induce the Bank to enter into this Amendment and to amend the Loan Agreement as provided
herein, the Guarantor hereby (a) ratifies and reaffirms the Guarantor’s obligations, and the Bank’s rights, under the Guaranty, all of the terms and conditions of which remain in full force and effect, (b) consents to the execution

  
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and delivery by the Borrower of this Amendment and the consummation of the transactions contemplated thereby, (c) acknowledges and agrees that the Guaranty shall apply and/or continue to apply
with full force and effect to, and shall serve and/or continue to serve as security for, all Obligations of the Borrower to the Bank, including without limitation all of the Obligations of the Borrower under the Loan Agreement, as amended by this
Amendment, (d) acknowledges and agrees that, as of the date hereof, there are no counterclaims, offsets or defenses to the Guarantor’s obligations under the Guaranty, and waives and releases all claims against the Bank in connection therewith
and (e) confirms that the Guarantor has derived direct and immediate financial and other benefits from the transactions contemplated by the Loan Agreement, and will continue to derive direct and immediate financial and other benefits from the
transactions contemplated by the Loan Agreement, as amended by this Amendment. 
 9. Representations and Warranties. In order to
induce the Bank to enter into this Amendment and to amend the Loan Agreement as provided herein, each Entity Loan Party hereby represents and warrants to the Bank that: 

(a) All of the representations and warranties of each Entity Loan Party set forth in the Loan Agreement are true, complete and correct in all
material respects on and as of the date hereof with the same force and effect as if made on and as of the date hereof and as if set forth at length herein. 

(b) After giving effect to this Amendment, no Event of Default presently exists and is continuing on and as of the date hereof. 

(c) Since the date of the Entity Loan Parties’ most recent financial statements delivered to the Bank, each Entity Loan Party has not
experienced a material adverse effect in its business, operations or financial condition. 
 (d) Each Entity Loan Party has full power and
authority to execute, deliver and perform any action or step which may be necessary to carry out the terms of this Amendment and this Amendment has been duly executed and delivered by each Entity Loan Party and is the legal, valid and binding
obligation of each Entity Loan Party enforceable in accordance with its terms, subject to any applicable bankruptcy, insolvency, general equity principles or other similar laws affecting the enforcement of creditors’ rights generally. 

(e) The execution, delivery and performance of this Amendment will not (i) violate any provision of any existing law, statute, rule,
regulation or ordinance, (ii) conflict with, result in a breach of, or constitute a default under (A) the certificate of incorporation or by-laws of the Borrower, (B) the certificate of formation or operating agreement of the Guarantor, (C) any
order, judgment, award or decree of any court, governmental authority, bureau or agency, or (D) any mortgage, indenture, lease, contract or other material agreement or undertaking to which the Entity Loan Parties are a party or by which the Entity
Loan Parties or any of their properties or assets may be bound, or (iii) result in the creation or imposition of any lien or other encumbrance upon or with respect to any property or asset now owned or hereafter acquired by the Entity Loan Parties,
other than liens in favor of the Bank, except, in the case of clauses (ii) and (iii) above, for any deviation from the foregoing which would not reasonably be expected to have a Material Adverse Effect. 

  
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 (f) No consent, license, permit, approval or authorization of, exemption by, notice to, report
to, or registration, filing or declaration with any person is required in connection with the execution, delivery and performance by the Entity Loan Parties of this Amendment or the validity thereof or the transactions contemplated thereby, other
than (i) filing or recordation of financing statements and like documents in connection with the Liens granted in favor of the Bank, (ii) those consents, if they were not obtained or made, which would not reasonably be expected to have a Material
Adverse Effect and (iii) filings which the Entity Loan Parties may be obligated to make with the Securities and Exchange Commission. 
 10.
Bank Costs. The Borrower shall reimburse the Bank on demand for all costs, including reasonable legal fees and expenses and recording fees, incurred by the Bank in connection with this Amendment and the transactions referenced herein. If
payment of such costs is not made within ten (10) days of the Bank’s demand therefor, the Bank may, and the Borrower irrevocably authorizes the Bank to, charge the Borrower’s account with the Bank or make an advance under the Facility A
Revolving Loan in order to satisfy such obligation of the Borrower. 
 11. Counterparts. This Amendment may be signed in several
counterparts, each of which shall be an original and all of which shall constitute one and the same instrument. 
 12. No Change.
Except as expressly set forth herein, all of the terms and provisions of the Loan Agreement shall continue in full force and effect. 
 13.
Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of New York. 

[Signatures on following page] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and
delivered by their proper and duly authorized officers as of the date set forth on the first page hereof. 
  

			
	MEDALLION FINANCIAL CORP.
		
	 By:
	 	 /s/ Brian O’Leary

	 Name:
	 	Brian O’Leary
	 Title
	 	Executive Vice President and Chief Operating Officer
	
	 MEDALLION FUNDING LLC

		
	 By:
	 	 /s/ Michael Kowalsky

	 Name:
	 	Michael Kowalsky
	 Title:
	 	President
	
	 STERLING NATIONAL BANK

		
	 By:
	 	 /s/ Thomas M. Braunstein

	 Name:
	 	Thomas M. Braunstein
	 Title:
	 	 Managing Director
 Middle Market
Banking

  
 5gnin_ex1013.htm

EXHIBIT 10.13

 

Consulting Agreement

This Consulting Agreement (this “Agreement”) is made as of August 16, 2013, by and between Green Hygienics, Inc. (the “Company”), a Florida corporation, located 316 Del Prado Blvd. South, Suite 204, Cape Coral, Florida 33990, and its subsidiaries and/or affiliates, and Determinaction Business Advisory (the “Consultant”), an individual, located at 1648 Plateau Cres, Coquitlam, BC, V3E 3B3, Canada.

Recitals

	
A.  

	
The Company is duly organized and validly existing as a Company in good standing under the laws of the State of Florida, who is in the business of importing and wholesaling paper products. The Company may also engage in other related and affiliated businesses.

	
B.  

	
The Consultant is a partnership which specializes in financial matters and its related activities. The Company finds the experience and knowledge of the Consultant to be advantageous to the Company. The Consultant’s principal, Sugiarto “Awie” Kardiman, will solely provide the services, as defined within the Agreement, to the Company.

	
C.  

	
The Company desires to engage the Consultant, and the Consultant desires to be so engaged, on the terms and conditions set forth below.

Agreement

Now therefore, in consideration of the Recitals, which shall be deemed to be a substantive part of this Agreement, and the mutual covenants, promises, agreements, representations, hereinafter set forth, the parties hereto do hereby covenant, promise, agree, represent and warrant as follows:

	
1.  

	
Consulting.

	
1.1.  

	
The Company hereby contracts the Consultant to a full time basis work related to accounting and other applicable work, as assigned, using the title Controller (the “Services”). The Consultant shall report to the Chief Financial Officer (“CFO”) of the Company. The Consultant shall not be able to bind the Company. The Consultant hereby accepts such consulting with the Company and agrees to render the Services for and on behalf of the Company on the terms and conditions set forth in this Agreement. The power to direct, control and supervise the services to be performed, the means and manner of performing the Services and the time for performing the Services shall be exercised by the CFO, provided, however, that the CFO shall not impose any consulting constraints or duties which would require the Consultant to violate any law, statutes, ordinance, rule or regulation now or hereinafter in effect.

 

	 	 	 
	Consultant 	 	Company

  

1

  

	
1.2.  

	
It is expressly acknowledged by the parties hereto that Consultant is an independent contractor and nothing in this Agreement is intended nor shall be construed to create an employer/employee relationship or a joint venture of any kind including any principal/agent relationship between the Company and Consultant. The Company shall not have any right to exercise any control or discretion over the manner or method by which Consultant performs services hereunder; provided, however, the services to be provided by Consultant hereunder shall be provided in a manner consistent with the professional standards governing such services and the provisions of this Agreement. Neither party shall have any authority to act for the other party, except as expressly provided herein, and Consultant shall have no right or power to create any liability or obligation for or on behalf of the Company or to sign any documents on behalf of the Company.

	
1.3.  

	
The compensation for the Consultant is as follows:

	
1.3.1.  

	
Shall commence on August 16, 2013 and will be at the rates as follows payable to the Consultant:

	
1.3.1.1.  

	
Monthly fees as follows: $12,500 payable on the 15th and last day of the month.

 

	
1.3.1.2.  

	
The consultant will receive 300,000 options for common stock of the parent company, Green Innovations Ltd., traded under the symbol GNIN.OB (the “Options”). The options will vest over three years and will have an exercise price of $0.278.

	
2.  

	
Term.

	
2.1.  

	
Agreement is for two years.

	
2.2.  

	
Either party may terminate the Agreement with thirty (30) days’ notice to the other party.

	
2.3.  

	
Consultant may elect to terminate this Agreement for Good Reason upon three (3) days’ written notice to the Company. “Good Reason” means any of the following: (a) the Consultant must terminate due to personal reasons, and (b) the Company commits a material breach of this Agreement which is not cured by the Company within ten (10) days after receiving written notice thereof from the Consultant.

	
3.  

	
Performance of Services.

	
  

	
3.1.   

	
The Consultant shall devote full time to the Company’s business to render the Services. The Consultant shall comply with all laws, statutes, ordinances, rules and regulations relating to the Services. The Consultant may engage in other activities during the term of this Agreement; provided that such activities do not materially interfere with the business of the Company. Consultant provides similar services for other companies, both private and public and as such, will devote substantial time to other interests. The Consultant may engage in other activities during the term of this Agreement.

 

	 	 	 
	Consultant 	 	Company

  

2

  

	
4.  

	
Confidential Information, Trade Secrets, Inventions and Creations.

	
4.1  

	
The Consultant acknowledges that in the Consultant’s consulting hereunder, the Consultant will be making use of, acquiring and adding to the Company’s trade secrets and its confidential and proprietary information of a special and unique nature and value relating to such matters as, but not limited to, the Company’s business operation, internal structure, financial affairs, programs, software, systems, procedures, manuals, confidential reports, lists of clients and prospective clients and sales and marketing methods, as well as the amount, nature and type of services, equipment and methods used and preferred by the Company’s clients and the fees paid by such clients, all of which shall be deemed to be confidential information. The Consultant acknowledges that such confidential information has been and will continue to be of central importance to the business of the Company and that disclosure of it to or its use by others could cause substantial loss to the Company. In consideration of consulting by the Company, the Consultant agrees that during his consulting the Consultant shall not, for any purpose whatsoever, directly or indirectly, divulge or disclose to any person or entity any of such confidential information which was obtained by the Consultant as a result of the Consultant’s consulting with the Company or any trade secrets of the Company, but shall hold all of the same confidential and inviolate.

	
5.  

	
Indemnification.

	
5.1  

	
The Company shall indemnify the Consultant, hold the Consultant harmless, and defend the Consultant to the fullest extent permitted by applicable law from and against all claims, threats, suits (except those arising from disputes between the Company and the Consultant), damages, penalties, liabilities, cost and expenses including, without limitation, legal fees, costs and disbursements (all collectively referred to as “liabilities”) incurred, suffered, or expended by or threatened against the Consultant with respect to any action or inaction in the course or performance of the Consultant’s duties under this Agreement except for liabilities arising entirely out of the gross negligence or willful misconduct of the Consultant. If any claims are made against Consultant he shall be entitled to an advance of his legal fees upon request to the Board of Directors. This indemnification shall continue in effect after the expiration or termination of this Agreement and shall not be deemed exclusive of any other indemnification right to which the Consultant may be entitled under applicable law, agreement or the vote of the Board of Directors.

	
6.  

	
Notices. All notices and other communications required or permitted to be given by this Agreement shall be in writing and shall be given and shall be deemed received if and when either hand-delivered or refused, or deemed received three-days after being mailed by registered or certified U.S. mail, return receipt requested, postage prepaid, and if to the

 

	 	
Company to: 
 
Green Hygienics, Inc.

316 Del Prado Blvd. South

Suite 204

Cape Coral, FL 33990

	
And if to the Consultant: 
Awie Kardiman

1648 Plateau Cres

Coquitlam, BC, V3E 3B3

Canada

 

or at such other address as either party hereto shall notify the other of in writing.

	
7.  

	
Governing Law, Jurisdiction and Venue. The laws of the State of Florida shall govern this Agreement without regard to any of its conflict of law provision.

 

	 	 	 
	Consultant 	 	Company

  

3

  

	
8.  

	
Attorneys’ Fees. In any action to enforce this Agreement or for damages relating to a breach of this Agreement, the Company shall pay attorneys’ fees, costs and expenses incurred in such action including those of Consultant.

	
9.  

	
Non-compete. During the term of this Agreement and for a period of two years thereafter, Consultant agrees that he will not be employed by or otherwise engaged in any business which competes with that of the Company. In addition Consultant shall not, during such two year period, contact any of the Company’s customers or consultants concerning any business or potential business which would compete with that of the Company. The provisions of this Section 9 shall not apply if it is determined that this Agreement was terminated by the Consultant for Good Reason.

	
10.  

	
Miscellaneous.

	
10.1  

	
This Agreement shall be binding upon and inure to the benefit of the Company, its successors and assigns. This Agreement shall be binding upon the Consultant and his heirs, personal and legal representatives, and guardians, and shall inure to the benefit of the Consultant. Neither this Agreement nor any part hereof or interest herein shall be assigned by the Consultant. If there is a sale of the Company or change in control thereof, as a condition precedent to any such sale or change in control, the acquiring Company or controlling person must assume responsibility for this Agreement and all payments due hereunder, in writing, as a condition to any such transaction. If such person or entity does not assume liability for this Agreement, then such inaction shall constitute a breach hereunder and Consultant shall be entitled to the payment provided for in this Agreement as liquidated damages.

	
10.2  

	
The terms and provisions of this Agreement may not be modified except by written instrument duly executed by each party hereto.

	
10.3  

	
The use of any gender herein shall be deemed to be or include the other genders and the neuter and the use of the singular herein shall be deemed to be and include the plural (and vice versa), wherever appropriate.

	
10.4  

	
This Agreement sets forth the entire, integrated understanding and Agreement of the parties hereto with respect to the subject matter hereof.

	
10.5  

	
The headings in this Agreement are included for the convenience of reference and shall be given no effect in the construction of this Agreement.

 

	 	 	 
	Consultant 	 	Company

  

4

  

IN WITNESS WHEREOF, the parties have executed, acknowledged, sealed and delivered this Agreement the day and year first hereinabove set forth.

 

	Green Hygienics, Inc.	 	Determinaction Business Advisory	 
	 	 	 	 	 	 
	By:	/s/ Bruce Harmon	 	By:	/s/ Awie Kardiman	 
	 	Bruce Harmon, CFO	 	 	Awie Kardiman, President	 
	 	 	 	 	
 

	 
	Dated: August 16, 2013 	 	Dated: August 16, 2013	 

 

 

	 	 	 
	Consultant 	 	Company

  

5

  

 

Addendum

 

Consulting Agreement

Between Determinaction Business Advisory and Green Hygienics, Inc.

 

This Addendum dated September 1, 2013 with an effective date of August 15, 2013 is to the Consulting Agreement between Determinaction Business Advisory and Green Hygienics, Inc. dated August 15, 2013.

 

In regards to Section 1.3.1.2. related to compensation, the Consulting Agreement states 300,000 options for common stock.  This Amendment hereby changes this section to be 300,000 shares of restricted common stock (the “Stock Issuance”) issued under Rule 144.  The Stock Issuance shall be vested over three years on a quarterly basis.

 

This modification is the only modification to the Employment Agreement and is accepted by both parties as witnessed by signature below.

 

	Green Hygienics, Inc.	 	Determinaction Business Advisory	 
	 	 	 	 	 	 
	By:	/s/ Bruce Harmon	 	By:	/s/ Awie Kardiman	 
	 	Bruce Harmon 	 	 	Awie Kardiman	 
	 	Chief Financial Officer  	 	 	
President

	 

 

 

6

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