Document:

Exhibit 10.1

 

TD Bank

*M10359XX000002338580900100940206*

 

AMENDED AND RESTATED 
REVOLVING TERM NOTE

September
28, 2018

$1,300,000.00

For value
received, the undersigned Intelligent 
Product Solutions Inc., a New York
corporation, with an address of
700 Veterans 
Memorial 
Highway,
Suite 100, Hauppauge, New York 11788 
(the "Borrower"), promises
to pay to the order of TD Bank, N.A., a National Association with an address of
324 South Service Road, Melville, New York 11747 (together with its successors
and assigns, the "Bank"), the principal amount of 
One Million,
Three Hundred Thousand Dollars and Zero Cents ($1,300,000.00), 
or, if less,
such amount as may be the aggregate unpaid principal amount of all loans or
advances made by the Bank to the Borrower pursuant hereto, on or before 
April
30, 2019 (the "Maturity Date") unless extended in writing by the
Bank in its sole and absolute discretion, together with interest from the date
hereof on the unpaid principal balance from time to time outstanding until paid
in full. The aggregate principal balance outstanding shall bear interest
thereon at a per annum rate equal to 
Three-Quarters Percent (.75%)
above
the Wall Street Journal Prime Rate (as hereinafter defined). All accrued and
unpaid interest shall be payable monthly in arrears on the eighth day of each
month, commencing on October 8, 2018.

Wall
Street Journal Prime Rate means the rate published from time to time by the
Wall Street Journal as the U.S. Prime Rate, or, in the event the Wall Street
Journal ceases publication of Prime Rates, the base, reference or other rate
then designated by the Bank, in its sole discretion, for general commercial
loan reference purposes, it being understood that such rate is a reference
rate, not necessarily the lowest, established from time to time, which serves
as the basis upon which effective interest rates are calculated for loans
making reference thereto.

The
effective interest rate applicable to the Borrower's loans evidenced hereby
shall change on the date of each change in the Wall Street Journal Prime Rate.

This Note
is an amendment and restatement of that certain 
$750,000.00 
Revolving
Term Note, dated January 8, 2014
(as previously amended, modified or
supplemented, the "Original Note"), by the Borrower in favor of the
Bank and shall be secured to the same extent and with the same priority as the
Original Note.

Principal
and interest shall be payable at the Bank's main office or at such other place
as the Bank may designate in writing in immediately available funds in lawful
money of the United States of America without set-off, deduction or
counterclaim. Interest shall be calculated on the basis of actual number of
days elapsed and a 360-day year.

This Note
is a revolving note and, subject to the foregoing and in accordance with the
provisions hereof and of any and all other agreements between the Borrower and
the Bank related hereto, the Borrower may, at its option, borrow, pay, prepay
and reborrow hereunder at any time prior to the Maturity Date or such earlier
date as the obligations of the Borrower to the Bank under this Note, and any
other agreements between the Bank and the Borrower related hereto, shall become
due and payable, or the obligation of the Bank to extend financial
accommodations to the Borrower shall terminate; provided, however, that in any
event the principal balance outstanding hereunder shall at no time exceed the
face amount of this Note. This Note shall continue in full force and effect
until all obligations and liabilities evidenced by this Note are paid in full
and the Bank is no longer obligated to extend financial accommodations
to the Borrower, even if, from time to time, there are no amounts outstanding
respecting this Note.

 

Loan Number
- Note 1: 23385809001

	 

 

 

 

At the option of the Bank, this Note shall become immediately due and
payable without notice or demand upon the occurrence at any time of any of the
following events of default (each, an "Event of Default"): (1)
default of any liability, obligation, covenant or undertaking of the Borrower,
any endorser or any guarantor hereof to the Bank, hereunder or otherwise,
including, without limitation, failure to pay in full and when due any
installment of principal or interest or default of the Borrower, any endorser
or any guarantor hereof under any other loan document delivered by the
Borrower, any endorser or any guarantor, or in connection with the loan
evidenced by this Note or any other agreement by the Borrower, any endorser or
any guarantor with the Bank continuing for 15 days with respect to any default
(other than with respect to the payment of money for which there is no grace
period); (2) failure of the Borrower, any endorser or any guarantor hereof to
maintain aggregate collateral security value satisfactory to the Bank
continuing for 15 days; (3) default of any material liability, obligation or
undertaking of the Borrower, any endorser or any guarantor hereof to any other
party continuing for 15 days; (4) if any statement, representation or warranty
heretofore, now or hereafter made by the Borrower, any endorser or any
guarantor hereof in connection with the loan evidenced by this Note or in any
supporting financial statement of the Borrower, any endorser or any guarantor
hereof shall be determined by the Bank to have been false or misleading in any
material respect when made; (5) if the Borrower, any endorser or any guarantor
hereof is a corporation, trust, partnership or limited liability company, the
liquidation, termination or dissolution of any such organization, or the merger
or consolidation of such organization into another entity, or its ceasing to
carry on actively its present business or the appointment of a receiver for its
property; (6) the death of the Borrower, any endorser or any guarantor hereof
and, if the Borrower, any endorser or any guarantor hereof is a partnership or
limited liability company, the death of any partner or member; (7) the
institution by or against the Borrower, any endorser or any guarantor hereof of
any proceedings under the Bankruptcy Code 11 USC §101 
et seq.

or any
other law in which the Borrower, any endorser or any guarantor hereof is
alleged to be insolvent or unable to pay its debts as they mature, or the
making by the Borrower, any endorser or any guarantor hereof of an assignment
for the benefit of creditors or the granting by the Borrower, any endorser or
any guarantor hereof of a trust mortgage for the benefit of creditors; (8) the
service upon the Bank of a writ in which the Bank is named as trustee of the
Borrower, any endorser or any guarantor hereof; (9) a judgment or judgments for
the payment of money shall be rendered against the Borrower, any endorser or
any guarantor hereof, and any such judgment shall remain unsatisfied and in
effect for any period of thirty (30) consecutive days without a stay of
execution; (10) any levy, lien (including mechanics lien) except as permitted
under any of the other loan documents between the Bank and the Borrower,
seizure, attachment, execution or similar process shall be issued or levied on
any of the property of the Borrower, any endorser or any guarantor hereof; (11)
the termination or revocation of any guaranty hereof; or (12) the occurrence of
such a change in the condition or affairs (financial or otherwise) of the Borrower,
any endorser or any guarantor hereof, or the occurrence of any other event or
circumstance, such that the Bank, in its sole discretion, deems that it is
insecure or that the prospects for timely or full payment or performance of any
obligation of the Borrower, any endorser or any guarantor hereof to the Bank
has been or may be impaired.

Any
payments received by the Bank on account of this Note shall, at the Bank's
option, be applied to any accrued unpaid interest, then to outstanding and due
amounts of principal; then to any required escrow payment if applicable; then
to any debt protection insurance premium if applicable; and then to any fees
including late charges and then to any costs. Notwithstanding the foregoing,
any payments received after the occurrence and during the continuance of an
Event of Default shall be applied in such manner as the Bank may determine. The
Borrower hereby authorizes the Bank to charge any deposit account which the
Borrower may maintain with the Bank for any payment required hereunder without
prior notice to the Borrower.

The
Borrower hereby authorizes Bank to charge checking account number 4281732755 at
Bank (or such other account maintained by the Borrower at Bank as the Borrower
shall designate by written notice to the Bank) (the "Deposit
Account") to satisfy the monthly payments due and payable to Bank
hereunder. Bank is hereby authorized to charge the Deposit Account on each
charge date or, if any charge date shall fall on a Saturday, Sunday or legal
holiday, then either on the first (1st) business day immediately
preceding or the first (1st) business day immediately following any such charge
date until the Note shall be paid in full.

 

Loan Number - Note 1: 23385809001

2

	 

 

 

The Borrower agrees to maintain sufficient funds in the Deposit Account
to satisfy the payment due Bank under the Note on each charge date during the
term of the loan. If sufficient funds are not available in the Deposit Account
on any charge date to pay the amounts then due and payable under this Note,
Bank, in its sole discretion, is authorized to: (a) charge the Deposit Account
for such lesser amount as shall then be available; and/or (b) charge the
Deposit Account on such later date or dates that funds shall be available in
the Deposit Account to satisfy the payment then due (or balance of such payment
then due). Notwithstanding the foregoing, the Borrower shall only be entitled
to receive credit in respect of any payments of principal and interest due under
this Note for funds actually received by Bank as a result of any such charges
to the Deposit Account. The Borrower shall be liable to Bank for any late fees
or interest at the default rate on any payments not made on a timely basis by
the Borrower because of insufficient funds in the Deposit Account on any charge
date. In the event the Deposit Account continues to contain insufficient funds
to fully satisfy the payments due Bank under this Note, the Borrower shall be
responsible for making all such payments from another source and in no event
shall the obligations of the Borrower under this Note be affected or diminished
as a result of any shortages in the Deposit Account, it being understood and
agreed that the Borrower shall at all times remain liable for payment in full
of all indebtedness under the Note.

Bank may,
at Bank's sole discretion, discontinue charging the Deposit Account at any time
on not less than ten (10) days' written notice to the Borrower, in which event,
the Borrower shall thereafter be responsible for making all payments hereunder
to Bank at the address set forth in Bank's notice or if no such address is
given, then to Bank at P.O. Box 5600, Lewiston, Maine 04243-5600.

If
pursuant to the terms of this Note, the Borrower is at any time obligated to
pay interest on the principal balance at a rate in excess of the maximum
interest rate permitted by applicable law for the loan evidenced by this Note,
the applicable interest rate shall be immediately reduced to such maximum rate
and all previous payments in excess of the maximum rate shall be deemed to have
been payments in reduction of principal and not on account of the interest due
hereunder.

The
Borrower represents to the Bank that the proceeds of this Note will not be used
for personal, family or household purposes or for the purpose of purchasing or
carrying margin stock or margin securities within the meaning of Regulations U
and X of the Board of Governors of the Federal Reserve System, 12 C.F.R. Parts
221 and 224.

The Borrower and each endorser and guarantor hereof grant to the Bank a
continuing lien on and security interest in any and all deposits or other sums
at any time credited by or due from the Bank or any Bank Affiliate (as
hereinafter defined) to the Borrower and/or each endorser or guarantor hereof
and any cash, securities, instruments or other property of the Borrower and
each endorser and guarantor hereof in the possession of the Bank or any Bank
Affiliate, whether for safekeeping or otherwise, or in transit to or from the
Bank or any Bank Affiliate (regardless of the reason the Bank or Bank Affiliate
had received the same or whether the Bank or Bank Affiliate has conditionally
released the same) as security for the full and punctual payment and
performance of all of the liabilities and obligations of the Borrower and/or
any endorser or guarantor hereof to the Bank or any Bank Affiliate and such
deposits and other sums may be applied or set off against such liabilities and
obligations of the Borrower or any endorser or guarantor hereof to the Bank or
any Bank Affiliate at any time, whether or not such are then due, whether or
not demand has been made and whether or not other collateral is then available
to the Bank or any Bank Affiliate.

No delay
or omission on the part of the Bank in exercising any right hereunder shall
operate as a waiver of such right or of any other right of the Bank, nor shall
any delay, omission or waiver on any one occasion be deemed a bar to or waiver
of the same or any other right on any future occasion. The Borrower and every
endorser or guarantor of this Note, regardless of the time, order or place of
signing, waive presentment, demand, protest, notice of intent to accelerate,
notice of acceleration and all other notices of every kind in connection with
the delivery, acceptance, performance or enforcement of this Note and assent to any
extension or postponement of the time of payment or any other indulgence, to
any substitution, exchange or release of collateral, and to the addition or
release of any other party or person primarily or secondarily liable and waives
all recourse to suretyship and guarantor defenses generally, including any defense
based on impairment of collateral. To the maximum extent permitted by law, the
Borrower and each endorser and guarantor of this Note waive and terminate any
homestead rights and/or exemptions respecting any premises under the provisions
of any applicable homestead laws, including without limitation, Section 5206 of
the Civil Practice Law and Rules of New York.

 

Loan Number
- Note 1: 23385809001

3

	 

 

 

 

The Borrower and each
endorser and guarantor of this Note shall indemnify, defend and hold the Bank
and the Bank Affiliates and their directors, officers, employees, agents and
attorneys (each an "Indemnitee") harmless against any claim brought
or threatened against any Indemnitee by the Borrower, by any endorser or
guarantor, or by any other person (as well as from attorneys' reasonable fees
and expenses in connection therewith) on account of the Bank's relationship
with the Borrower or any endorser or guarantor hereof (each of which may be
defended, compromised, settled or pursued by the Bank with counsel of the
Bank's selection, but at the expense of the Borrower and any endorser and/or
guarantor), except for any claim arising out of the gross negligence or willful
misconduct of the Bank.

The Borrower and each
endorser and guarantor of this Note agree to pay, upon demand, costs of
collection of all amounts under this Note including, without limitation,
principal and interest, or in connection with the enforcement of, or
realization on, any security for this Note, including, without limitation, to
the extent permitted by applicable law, reasonable attorneys' fees and
expenses. Upon the occurrence and during the continuance of an Event of
Default, interest shall accrue at a rate per annum equal to the aggregate of
4.0% plus the rate provided for herein. If any payment due under this Note is
unpaid for 15 days or more, the Borrower shall pay, in addition to any other
sums due under this Note (and without limiting the Bank's other remedies on
account thereof), a late charge equal to 6.0% of such unpaid amount (which
amount shall be subject to and limited so as to not be in violation of the
provisions of Section 254-b of New York Real Property Law, if applicable).

This Note shall be binding upon the
Borrower and each endorser and guarantor hereof and upon their respective
heirs, successors, assigns and legal representatives, and shall inure to the
benefit of the Bank and its successors, endorsees and assigns.

The liabilities of the
Borrower and each Borrower, if more than one, and any endorser or guarantor of
this Note are joint and several; provided, however, the release by the Bank of
the Borrower or any one or more endorsers or guarantors shall not release any
other person obligated on account of this Note. Any and all present and future
debts of the Borrower to any endorser or guarantor of this Note are
subordinated to the full payment and performance of all present and future
debts and obligations of the Borrower to the Bank. Each reference in this Note
to the Borrower and each Borrower, if more than one, and endorser or guarantor
of this Note, is to such person individually and also to all such persons
jointly. No person obligated on account of this Note may seek contribution from
any other person also obligated, unless and until all liabilities, obligations
and indebtedness to the Bank of the person from whom contribution is sought
have been irrevocably satisfied in full. The release or compromise by the Bank
of any collateral shall not release any person obligated on account of this
Note.

The Borrower and each
endorser and guarantor hereof each authorizes the Bank to complete this Note if
delivered incomplete in any respect. A photographic or other reproduction of
this Note may be made by the Bank, and any such reproduction shall be,

admissible in evidence with the same effect as the
original itself in any judicial or administrative proceeding, whether or not
the original is in existence.

The Bank is subject to
the requirements of the USA Patriot Act (Title III of Pub. L. 107-56) (signed
into law October 26, 2001)) (the "Act") and hereby notifies the
Borrower that pursuant to the requirements of the Act, it is required to
obtain, verify and record information that identifies the Borrower, which
information includes the name and address of the Borrower and other information
that will allow Bank to identify the Customer in accordance with the Act.

The Borrower will from
time to time execute and deliver to the Bank such documents, and take or cause to
be taken, all such other further action, as the Bank may request in order to
effect and confirm or vest more securely in the Bank all rights contemplated by
this Note or any other loan documents related thereto (including, without
limitation, to correct clerical errors) or to vest more fully in or assure to
the Bank the security interest in any collateral securing this Note or to
comply with applicable statute or law.

Loan Number - Note 1: 23385809001

4

	 

 

The
Borrower agrees to execute, re-execute, cause any Guarantor(s) or other third
party(ies) involved in the loan transaction to execute and/or re-execute and to
deliver to Bank or its legal counsel, as may be deemed appropriate, any
document or instrument signed in connection with the Loan which was incorrectly
drafted and/or signed, as well as any document or instrument which should have
been signed at or prior to the closing of the Loan, but which was not so signed
and delivered. Borrower agrees to comply with any written request by Bank
within ten (10) days after receipt by Borrower of such request. Failure by
Borrower to so comply shall, at the option of Bank, upon notice to Borrower,
constitute an event of default under the Loan. The Borrower authorizes the Bank
to make any credit inquiries Bank deems necessary and authorizes any person or
credit reporting agency to give Bank a copy of the Borrower's credit report and
any other financial information it may have.

This Note
shall be governed by the laws of the State of New York without giving effect to
the conflicts of laws principles thereof.

Any
notices under or pursuant to this Note shall be deemed duly received and
effective if delivered in hand to any officer of agent of the Borrower or Bank,
or if mailed by registered or certified mail, return receipt requested,
addressed to the Borrower or Bank at the address set forth in this Note or as
any party may from time to time designate by written notice to the other party;
notwithstanding the foregoing notices to the Bank with respect to accounting
and collateral release and notices to the Trustee pursuant to a Deed of Trust
shall be sent to the Bank as follows: Attention: VP Loan Servicing, Loan
Services, 6000 Atrium Way, Mt. Laurel NJ 08054.

The term
"Bank Affiliate" as used in this Note shall mean any
"Affiliate" of the Bank. The term "Affiliate" shall mean
with respect to any person, (a) any person which, directly or indirectly
through one or more intermediaries controls, or is controlled by, or is under
common control with, such person, or (b) any person who is a director or
officer (i) of such person, (ii) of any subsidiary of such person, or (iii) any
person described in clause (a) above. For purposes of this definition, control
of a person shall mean the power, direct or indirect, (x) to vote 5% or more of
the Capital Stock having ordinary voting power for the election of directors
(or comparable equivalent) of such person, or (y) to direct or cause the
direction of the management and policies of such person whether by contract or
otherwise. Control may be by ownership, contract, or otherwise.

The
Borrower and each endorser and guarantor of this Note each irrevocably submits
to the nonexclusive jurisdiction of any Federal or state court sitting in New
York, over any suit, action or proceeding arising out of or relating to this
Note. Each of the Borrower and each endorser and guarantor irrevocably waives,
to the fullest extent it may effectively do so under applicable law, any
objection it may now or hereafter have to the laying of the venue of any such
suit, action or proceeding brought in any such court and any claim that the
same has been brought in an inconvenient forum. Each of the Borrower and each
endorser and guarantor hereby consents to any and all process which may be
served in any such suit, action or proceeding, (i) by mailing a copy thereof by
registered and certified mail, postage prepaid, return receipt requested, to
the Borrower's, endorser's or guarantor's address shown below or as notified to
the Bank and (ii) by serving the same upon the Borrower(s), endorser(s) or
guarantor(s) in any other manner otherwise permitted by law, and agrees that
such service shall in every respect be deemed effective service upon the
Borrower or such endorser or guarantor.

Loan Number
- Note 1: 23385809001

5

	 

 

 

THE
BORROWER, EACH ENDORSER AND GUARANTOR AND THE BANK EACH HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY, AND AFTER AN OPPORTUNITY TO CONSULT WITH LEGAL
COUNSEL, (A) WAIVES ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING IN CONNECTION WITH THIS NOTE, ANY OF THE OBLIGATIONS OF THE
BORROWER, EACH ENDORSER AND GUARANTOR TO THE BANK, AND ALL MATTERS CONTEMPLATED
HEREBY AND DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND (B) AGREES NOT
TO SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY
TRIAL CAN NOT BE, OR HAS NOT BEEN, WAIVED. THE BORROWER, EACH ENDORSER AND
GUARANTOR AND THE BANK EACH CERTIFIES THAT NEITHER THE BANK NOR ANY OF ITS
REPRESENTATIVES, AGENTS OR COUNSEL HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT THE BANK WOULD NOT IN THE EVENT OF ANY SUCH PROCEEDING SEEK TO ENFORCE
THIS WAIVER OF RIGHT TO TRIAL BY JURY.

Executed as of

September 28, 2018.

		

Borrower:

			
 

			
	

Intelligent Product Solutions Inc.

			
 

			
	
			

By::   /s/ 
Michael Matte

			

			
	

Michael Matte, Chief Financial Officer

			
 

			
	

700 Veterans Memorial Highway, Suite 100

			
	

Hauppauge, New York

			
	

11788

			

 

 

 

 

 

 

 

Loan Number - Note 1: 23385809001

 

6

 

Promissory Notes(6)Exhibit 10.2

 

TD Bank

*M10358CL000002338580900100940206*

MODIFICATION
AGREEMENT

This
MODIFICATION AGREEMENT is entered into as of 
September 28, 2018, 
between
Intelligent Product Solutions Inc., a New York corporation,
with an
address of 700 Veterans Memorial Highway, Suite 100, Hauppauge, New York
11788 (the "Borrower") and TD Bank, N.A., a National Association
with an address of 324 South Service Road, Melville, New York 11747 (the
"Bank").

WHEREAS,
the Bank established a revolving line of credit (the "Revolving
Loan") for Borrower which matures on 
September 30, 2018 
(the
"Maturity Date") respecting which Bank agreed to lend to Borrower
upon Borrower's request, but subject to the terms and conditions set forth in
various loan documents, of up to 
Seven Hundred Fifty Thousand Dollars and
Zero Cents ($750,000.00) 
(the "Revolving Loan Amount");

WHEREAS,
the Revolving Loan is evidenced by that certain Revolving Term Note, dated
January
8, 2014 (as previously amended, modified or supplemented, the
"Note"), by the Borrower in favor of the Bank in the face amount of
the Revolving Loan Amount;

WHEREAS,
pursuant to one or more previous amendments, modifications or supplements the
original principal amount of the Note was changed to 
$1,000,000.00;

WHEREAS,
in connection with the Revolving Loan, Borrower entered into that certain Loan
and Security Agreement, dated 
January 8, 2014 
(as previously amended,
modified or supplemented, the "Loan Agreement");

WHEREAS, the Loan Agreement and the Note and all other documents and
instruments executed in connection with or relating to the Loan are referred to
herein, collectively, as the "Loan Documents"; and all collateral
granted to the Bank to secure the Loan is referred to herein, collectively, as
the "Collateral";

WHEREAS,
the Bank has requested that the Borrower provide additional security for the
Loan and the Borrower has requested that the Bank accept one or more additional
guaranty(s) for the Loan as such additional security;

WHEREAS,
the Borrower has requested and the Bank has agreed to increase the amount of
availability under the Loan Documents;

WHEREAS,
the Borrower and the Bank have agreed to modify the Loan and the Loan Documents
in accordance with the terms of this Agreement.

NOW
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Bank and the Borrower mutually agree as
follows:

1.
MODIFICATION

1.1       Recitals
and Representations Accurate. The above recitals are hereby made a part of
this Agreement and the Borrower acknowledges and agrees that each of the
recitals is true and correct.

1.2      
Ratification. All of the terms, covenants, provisions,
representations, warranties, and conditions 
of the
Loan Documents, as amended or modified hereby, are ratified, acknowledged,
confirmed, and continued in full force and effect as if fully restated herein.

 

Loan Number - Note 1: 23385809001

	 

 

1.3      
Additional
Guaranty. Forward Industries, Inc. has executed and delivered a guaranty of
the Loan on terms
and conditions acceptable to the Bank in its sole and unfettered discretion.

1.4      
Additional Change. The guarantee of Mitch Maiman
and Paul Severino shall be released.

1.5      
Increased Availability. Availability under the
Loan Documents shall be increased from 
One Million
Dollars and Zero Cents ($1,000,000.00) 
to One 
Million, Three Hundred
Thousand Dollars and Zero Cents ($1,300,000.00) 
(the "Revised
Borrowing Limit") and all references to availability in the Loan Documents
shall be modified accordingly.

1.6      
Amended
and Restated Note. The Note shall be amended and restated in the form
attached

hereto as
Exhibit A (the "Amended Note").

1.7      
Covenants. 
 Section 5.1 (a) and (b) of the Loan
and Security Agreement dated January 8, 2014 shall be
deleted in entirety and replaced with the following:

(a)    
Definitions. The following definitions shall apply to
this Section:

(i)
"Debt Service Coverage-Post Distributions" shall mean (net income
after tax + depreciation/depletion/amortization + interest —
dividends/distributions +/- non-recurring items) divided by (required annual
principal & interest payments). Non-recurring items will include other
income/expenses that are not part of the normal ongoing operations of the
company, as determined by the Bank.

(b)    
Debt Service Coverage-Post Distributions. The
Borrower shall not permit the ratio of Debt Service Coverage-Post Distributions
to be less than 1.20 to 1.0 for any fiscal year.

1.8      
Representations and Warranties. The Borrower
hereby represents and warrants to the Bank that:

(a)   The person executing this Agreement is duly authorized to do so
and to bind the Borrower to the terms hereof;

(b)   Each of the Loan Documents is a valid and legal binding obligation
of the Borrower, enforceable in accordance with its terms, and is not subject
to any defenses, counterclaims, or offsets of any kind;

(c)   All financial statements delivered to the Bank were true, accurate
and complete, in all material respects, as of the date of delivery to the Bank;

(d)   Since the date of the Loan Documents there has been no material
adverse change in the condition, financial or otherwise, of the Borrower,
except as disclosed to the Bank in writing;

(e)   There exists no action, suit, proceeding or investigation, at law
or in equity, before any court, board, administrative body or other entity,
pending or threatened, affecting the Borrower or its property, wherein an
unfavorable decision, ruling or finding would materially adversely affect the
business operations, property or financial condition of the Borrower; and

(f)   There exists no event of default, or other circumstance that with
the passage of time or giving of notice or both will become an event of
default, under any of the Loan Documents.

1.9      
Interest, Fees, Costs and Expenses. The Borrower
shall, simultaneously with the execution of this Agreement, pay to the Bank all accrued interest owing on the
Loan as of the date of this Agreement together
with all fees, costs and expenses due and owing to the Bank by the Borrower
under the Loan Documents.

Loan Number
- Note 1: 23385809001

2

	 

 

2.
MISCELLANEOUS

2.1     
Set-Off. The Borrower hereby grants to the Bank a
continuing lien and security interest in any and all deposits or other sums at
any time credited by or due from the Bank to the Borrower and any cash,
securities, instruments or other property of the Borrower in the possession of
the Bank, whether for safekeeping or otherwise, or in transit to or from the
Bank (regardless of the reason the Bank had received the same or whether the
Bank has conditionally released the same) as security for the full and punctual
payment and performance of all of the liabilities and obligations of the
Borrower to the Bank and such deposits and other sums may be applied or set off
against such liabilities and obligations of the Borrower to the Bank at any
time, whether or not such are then due, whether or not demand has been made and
whether or not other collateral is then available to the Bank.

2.2     
Release
of the Bank. The Borrower hereby confirms that as of the date hereof it has
no claim, set-off, counterclaim, defense, or other cause of action against the
Bank including, but not limited to, a defense of usury, any claim or cause of
action at common law, in equity, statutory or otherwise, in contract or in
tort, for fraud, malfeasance, misrepresentation, financial loss, usury, deceptive
trade practice, or any other loss, damage or liability of any kind, including,
without limitation, any claim to exemplary or punitive damages arising out of
any transaction between the Borrower and the Bank. To the extent that any such
set-off, counterclaim, defense, or other cause of action may exist or might
hereafter arise based on facts known or unknown that exist as of this date,
such set-off, counterclaim, defense and other cause of action is hereby
expressly and knowingly waived and released by the Borrower. The Borrower
acknowledges that this release is part of the consideration to the Bank for the
financial and other accommodations granted by the Bank in this Agreement.

2.3     
Costs
and Expenses. The Borrower shall pay to the Bank on demand any and all
costs and expenses (including, without
limitation, reasonable attorneys' fees and disbursements, court costs,
litigation and other expenses) incurred or paid by the Bank in establishing,
maintaining, protecting or enforcing any of the Bank's rights or any of the
obligations owing by the Borrower to the Bank, including, without limitation,
any and all such costs and expenses incurred or paid by the Bank in defending
the Bank's security interest in, title or right to, the Collateral or in
collecting or attempting to collect or enforcing or attempting to enforce
payment of the Loan.

2.4     
Indemnification.
The Borrower shall indemnify, defend and hold the Bank and its directors, officers, employees, agents and
attorneys (each an "Indemnitee") harmless against any claim brought
or threatened against any Indemnitee by the Borrower or any guarantor or
endorser of the obligations of the Borrower to the Bank, or any other person
(as well as from attorneys' fees and expenses in connection therewith) on
account of the Bank's relationship with the Borrower, or any guarantor or
endorser of the obligations of the Borrower to the Bank (each of which may be
defended, compromised, settled or pursued by the Bank with counsel of the
Bank's election, but at the expense of the Borrower), except for any claim
arising out of the gross negligence or willful misconduct of the Bank. The
within indemnification shall survive payment of the obligations of the Borrower
to the Bank, and/or any termination, release or discharge executed by the Bank
in favor of the Borrower.

2.5     
Severability.
If any provision of this Agreement or portion of such provision or the
application thereof to any person or
circumstance shall to any extent be held invalid or unenforceable, the
remainder of this Agreement (or the remainder of such provision) and the
application thereof to other persons or circumstances shall not be affected
thereby.

2.6     
Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute but one
agreement.

Loan Number - Note 1: 23385809001

3

	 

 

 

2.7         
Complete
Agreement. This Agreement and the other Loan Documents constitute the
entire agreement
and understanding between and among the parties hereto relating to the subject
matter hereof, and supersedes all prior proposals, negotiations, agreements and
understandings among the parties hereto with respect to such subject matter.

2.8         
Binding
Effect of Agreement. This Agreement shall be binding upon and inure to the
benefit of the respective heirs, executors, administrators, legal representatives,
successors and assigns of the parties hereto, and shall remain in full force
and effect (and the Bank shall be entitled to rely thereon) until released in
writing by the Bank. The Bank may transfer and assign this Agreement and
deliver the Collateral to the assignee, who shall thereupon have all of the
rights of the Bank; and the Bank shall then be relieved and discharged of any
responsibility or liability with respect to this Agreement and the Collateral.
Except as expressly provided herein or in the other Loan Documents, nothing,
expressed or implied, is intended to confer upon any party, other than the
parties hereto, any rights, remedies, obligations or liabilities under or by
reason of this Agreement or the other Loan Documents.

2.9         
Further
Assurances. The Borrower will from time to time execute and deliver to the
Bank such documents, and take or cause to be taken, all such other further action,
as the Bank may request in order to effect and confirm or vest more securely in
the Bank all rights contemplated by this Agreement (including, without
limitation, to correct clerical errors) or to vest more fully in or assure to
the Bank the security interest in the Collateral or to comply with applicable
statute or law and to facilitate the collection of the Collateral (including,
without limitation, the execution of stock transfer orders and stock powers,
endorsement of promissory notes and instruments and notifications to obligors
on the Collateral). To the extent permitted by applicable law, the Borrower
authorizes the Bank to file financing statements, continuation statements or
amendments without the Borrower's signature appearing thereon, and any such
financing statements, continuation statements or amendments may be signed by
the Bank on behalf of the Borrower, if necessary, and may be filed at any time
in any jurisdiction. The Bank may at any time and from time to time file
financing statements, continuation statements and amendments thereto which
contain any information required by the New York Uniform Commercial Code as
amended from time to time (the "Code") for the sufficiency or filing
office acceptance of any financing statement, continuation statement or
amendment, including whether the Borrower is an organization, the type of
organization and any organization identification number issued to the Borrower.
The Borrower agrees to furnish any such information to the Bank promptly upon
request. In addition, the Borrower shall at any time and from time to time take
such steps as the Bank may reasonably request for the Bank (i) to obtain an
acknowledgment, in form and substance satisfactory to the Bank, of any bailee
having possession of any of the Collateral that the bailee holds such
Collateral for the Bank, (ii) to obtain "control" (as defined in the
Code) of any Collateral comprised of deposit accounts, electronic chattel
paper, letter of credit rights or investment property, with any agreements
establishing control to be in form and substance satisfactory to Bank, and
(iii) otherwise to insure the continued perfection and priority of the Bank's
security interest in any of the Collateral and the preservation of its rights
therein. The Borrower hereby constitutes the Bank its attorney-in-fact to
execute, if necessary, and file all filings required or so requested for the
foregoing purposes, all acts of such attorney being hereby ratified and
confirmed; and such power, being coupled with an interest, shall be irrevocable
until this Agreement terminates in accordance with its terms, all obligations
of the Borrower to the Bank are irrevocably paid in full and the Collateral is
released.

2.10    

Amendments and Waivers. This Agreement may be amended and the
Borrower may take any action herein prohibited, or omit to perform any act
herein required to be performed by it, if the Borrower shall obtain the Bank's
prior written consent to each such amendment, action or omission to act. No
delay or omission on the part of the Bank in exercising any right hereunder
shall operate as a waiver of such right or any other right and waiver on any
one or more occasions shall not be construed as a bar to or waiver of any right
or remedy of the Bank on any future occasion.

2.11      
Terms
of Agreement. This Agreement shall continue in force and effect so long as
any obligation of the
Borrower to Bank shall be outstanding and is supplementary to each and every
other agreement between the Borrower and Bank and shall not be so construed as
to limit or otherwise derogate from any of the rights or remedies of Bank or
any of the liabilities, obligations or undertakings of the Borrower under any
such agreement, nor shall any contemporaneous or subsequent agreement between
the Borrower
and the Bank be construed to limit or otherwise derogate from any of the rights
or remedies of Bank or any of the liabilities, obligations or undertakings of
the Borrower hereunder, unless such other agreement specifically refers to this
Agreement and expressly so provides.

Loan Number
- Note 1: 23385809001

4

	 

 

 

2.12    
Notices.
Any notices under or pursuant to this Agreement shall be deemed duly received
and effective
if delivered in hand to any officer of agent of the Borrower or Bank, or if
mailed by registered or certified mail, return receipt requested, addressed to
the Borrower or Bank at the address set forth in this Agreement or as any party
may from time to time designate by written notice to the other party;
notwithstanding the foregoing notices to the Bank with respect to accounting
and collateral release and notices to the Trustee pursuant to a Deed of Trust
shall be sent to the Bank as follows: Attention: VP Loan Servicing, Loan
Services, 6000 Atrium Way, Mt. Laurel NJ 08054.

2.13    
New
York Law. This Agreement shall be governed by the laws of the State of New
York without giving
effect to the conflicts of laws principles thereof.

2.14    
Reproductions. This Agreement and all documents
which have been or may be hereinafter furnished
by Borrower to the Bank may be reproduced by the Bank by any photographic,
photostatic, microfilm, xerographic or similar process, and any such
reproduction shall be admissible in evidence as the original itself in any
judicial or administrative proceeding (whether or not the original is in
existence and whether or not such reproduction was made in the regular course
of business).

2.15    
Venue.
Borrower irrevocably submits to the nonexclusive jurisdiction of any Federal or
state court sitting in New York, over any
suit, action or proceeding arising out of or relating to this Agreement.
Borrower irrevocably waives to the fullest extent it may effectively do so
under applicable law, any objection it may now or hereafter have to the laying
of the venue of any such suit, action or proceeding brought in any such court
and any claim that the same has been brought in an inconvenient forum. Borrower
irrevocably appoints the Secretary of State of the State of New York as its
authorized agent to accept and acknowledge on its behalf any and all process
which may be served in any such suit, action or proceeding, consents to such
process being served (i) by mailing a copy thereof by registered or certified
mail, postage prepaid, return receipt requested, to Borrower's address shown
above or as notified to the Bank and (ii) by serving the same upon such agent,
and agrees that such service shall in every respect be deemed effective service
upon Borrower.

2.16     
JURY
WAIVER. BORROWER AND BANK EACH HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY, AND AFTER AN OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL, WAIVE
(A) ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING IN
CONNECTION WITH THIS AGREEMENT, THE OBLIGATIONS, ALL MATTERS CONTEMPLATED
HEREBY AND DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND (B) AGREE NOT TO SEEK
TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CAN
NOT BE, OR HAS NOT BEEN WAIVED. THE BORROWER CERTIFIES THAT NEITHER THE BANK
NOR ANY OF ITS REPRESENTATIVES, AGENTS OR COUNSEL HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT THE BANK WOULD NOT IN THE EVENT OF ANY SUCH PROCEEDING SEEK TO
ENFORCE THIS WAIVER OF RIGHT TO TRIAL BY JURY.

Executed on this day September 28, 2018.

 

 

 

 

 

Loan Number - Note 1: 23385809001

5

	 

 

 

		
			
			Borrower:

			 

	
			
			Intelligent Product Solutions Inc.

			
	
			
				
				By:
				/s/ Michael Matte

			
	
			
			Michael
Matte, Chief Financial Officer

 

 

		
			
			Accepted: TD Bank, N.A.

			
			 

			
	
			
				
				By: 
				/s/ John Topolovec
				

			
	
			
			Name: John Topolovec

			
	
			
			Title: Duly Authorized Representative

			

 

 

 

Loan
Number- Note 1: 23385809001

 

6

Modification-Extension Agreements(5)

 

EXHIBIT
A

AMENDED AND RESTATED NOTE

 

 

 

 

 

 

 

 

 

 

 

 

 

Loan Number - Note 1:
23385809001

 

 

7

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