Document:

EXHIBIT 10.1

 

	

	
LOAN MODIFICATION

	
AGREEMENT

 

This Loan Modification Agreement (“Fourth Modification”) modifies the Loan Agreement dated July 1, 2008 (as amended, the “Agreement”), regarding a revolving line of credit in the current maximum principal amount of $22,000,000 and a term loan in the original principal amount of $13,500,000 (the “Facilities”), executed by CRAFT BREW ALLIANCE, INC. (formerly Craft Brewers Alliance, Inc.) (“Borrower”) and BANK OF AMERICA, N.A. (“Bank”).  Terms used in this Fourth Modification and defined in the Agreement shall have the meaning given to such terms in the Agreement.  For mutual consideration, Borrower and Bank agree to amend the Agreement as follows:

 

1.              Extension of Availability Period.  Section 1.2 of the Agreement is amended as follows:

 

1.2            Availability Period.  The Line of Credit is available between the date of this Agreement and October 31, 2018, or such earlier date as the availability may terminate as provided in this Agreement (the “Expiration Date”).

 

2.              LIBOR Rate.  Section 1.4 of the Agreement is deleted and replaced with the following:

 

(a)            The interest rate is a rate per year equal to the LIBOR Daily Floating Rate plus the Applicable Rate as defined below.

 

(b)            The LIBOR Daily Floating Rate is a fluctuating rate of interest that can change on each banking day.  The rate will be adjusted on each banking day to equal the British Bankers Association LIBOR Rate (or any successor thereto approved by the Bank in its reasonable discretion if the British Bankers Association is no longer making a LIBOR rate available) for U.S. Dollar deposits for delivery on the date in question for a one month term beginning on that date.  The Bank will use the LIBOR Rate as published by Reuters (or other commercially available source providing quotations of such rate as selected by the Bank in its reasonable discretion from time to time) as determined at approximately 11:00 a.m. London time two (2) London Banking Days prior to the date in question, as adjusted from time to time in the Bank’s sole discretion for reserve requirements, deposit insurance assessment rates and other regulatory costs.  If such rate is not available at such time for any reason, then the rate will be determined by such alternate method as reasonably selected by the Bank.  A “London Banking Day” is a day on which banks in London are open for business and dealing in offshore dollars.

 

3.              Prepayments.  Section 3.2(g) of the Agreement is deleted and replaced with the following:

 

(g)           Prepayments.

 

(i)            The Borrower may prepay a Facility in full or in part at any time.  The prepayment will be applied to the most remote payment of principal due under this Agreement.

 

(ii)            Each prepayment, whether voluntary, by reason of acceleration or otherwise, will be accompanied by the amount of accrued interest on the amount prepaid, and, if the prepayment is made during a Fixed Interest Rate Period, the prepayment fee described below.

 

(iii)            The prepayment fee is intended to compensate the Bank for the funding costs of the prepaid credit, if any.  The prepayment fee will be determined by calculating the funding costs incurred by the Bank, based on the cost of funds at the time the interest rate was fixed, and subtracting the interest income which can be earned by the Bank by reinvesting the prepaid funds at the Reinvestment Rate.  The calculation is defined more fully below.

(iv)            The “Fixed Interest Rate Period” is the period during which the interest rate in effect at the time of the prepayment does not change.  If the Fixed Interest Rate Period does not extend for the entire remaining life of the credit, then the following rules will apply:

 

(A)            For any portion of the prepaid principal for which the scheduled payment date is after the end of the Fixed Interest Rate Period, the prepayment fee for that portion shall be calculated based only on the period through the end of the Fixed Interest Rate Period, as described below.

 

(B)            If a prepayment is made on a date on which the interest rate resets, then there will be no prepayment fee.

 

(v)            The prepayment fee calculation is made separately for each Prepaid Installment.  A “Prepaid Installment” is the amount of the prepaid principal that would have been due on a particular scheduled payment date (the “Scheduled Payment Date”).  However, as explained in the preceding paragraph, all amounts of the credit that would have been paid after the end of the Fixed Interest Rate Period shall be considered a single Prepaid Installment with a Scheduled Payment Date (for the purposes of this calculation) equal to the last day of the Fixed Interest Rate Period.

 

(vi)           The prepayment fee for a particular Prepaid Installment will be calculated as follows:

 

(A)            Calculate the monthly interest payments that would have accrued on the Prepaid Installment through the applicable Scheduled Payment Date, if the prepayment had not been made.  The interest payments will be calculated using the Original Cost of Funds Rate.

 

(B)            Next, calculate the monthly interest income that could be earned on the Prepaid Installment if it were reinvested by the Bank at the Reinvestment Rate through the Scheduled Payment Date.

 

(C)            Calculate the monthly differences of the amounts calculated in (A) minus the amounts calculated in (B).

 

(D)            If the remaining term of the Fixed Interest Rate Period is greater than one year, calculate the present value of the amounts calculated in (C), using the Reinvestment Rate.  The result of the present value calculation is the prepayment fee for the Prepaid Installment.

 

(vii)        Finally, the prepayment fees for all of the Prepaid Installments are added together.  The sum, if greater than zero, is the total prepayment fee due to the Bank.

 

(viii)      The following definitions will apply to the calculation of the prepayment fee:

 

(i)            “Original Cost of Funds Rate” means the fixed interest rate per annum, determined solely by the Bank, at which the Bank would be able to borrow funds in the Bank Funding Markets for the duration of the Fixed Interest Rate Period in the amount of the prepaid principal and with a term, interest payment frequency, and principal repayment schedule matching the prepaid principal.

 

(ii)            “Bank Funding Markets” means one or more wholesale funding markets available to the Bank, including the LIBOR, Eurodollar, and SWAP markets as applicable and available, or such other appropriate money market as determined by the Bank in its sole discretion.

 

(iii)            “Reinvestment Rate” means the fixed rate per annum, determined solely by the Bank, as the rate at which the Bank would be able to reinvest funds in the amount of the Prepaid Installment in the Bank Funding Markets on the date of prepayment for a period of time approximating the period starting on the date of prepayment and ending on the Scheduled Payment Date.

 

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(ix)           The Original Cost of Funds Rate and the Reinvestment Rate are the Bank’s estimates only and the Bank is under no obligation to actually purchase or match funds for any transaction or reinvest any prepayment. The Bank may adjust the Original Cost of Funds Rate and the Reinvestment Rate to reflect the compounding, accrual basis, or other costs of the prepaid amount. The rates shall include adjustments for reserve requirements, federal deposit insurance and any other similar adjustment which the Bank deems appropriate. These rates are not fixed by or related in any way to any rate the Bank quotes or pays for deposits accepted through its branch system.

 

4.             IBOR Rate.  Sections 1.5 and 2.5 of the Agreement are amended to delete the bullet that says “The IBOR Rate plus the Applicable Rate as defined below.”  The IBOR Rate shall no longer be an optional interest rate, and Section 3.3 of the Agreement is hereby deleted.  The reference to IBOR in the definition of “Applicable Rate” in Section 1.6 of the Agreement is also hereby deleted.

 

5.             Extension of Term Loan.  As of the date of this Fourth Modification, the current principal balance of the Term Loan is $11,484,739.31.  The Borrower agrees to pay the principal balance of the Term Loan down to $10,800,000 to achieve an 80% loan to value ratio on the Borrower’s real property located in Multnomah County, Oregon secured by the Bank’s deed of trust.  Section 2.3(b) of the Agreement is amended as follows:

 

(b)            The Borrower will repay principal in equal installments of $45,000 beginning on January 1, 2014 and on the same day of each month thereafter and ending on September 30, 2023 (the “Term Loan Repayment Period”).  In any event, on the last day of the Term Loan Repayment Period, the Borrower will repay the remaining principal balance plus any interest then due.  If at any time in connection with the Term Loan the Borrower and the Bank enter into a "Swap Transaction" as that term is defined in Section 5.6, and if as a consequence the monthly installment payments under the Term Loan will change, then unless otherwise agreed in writing the Term Loan shall thereafter be repaid (instead of as provided above) in monthly installments, due on the first calendar day of each month, equal to the sum of (i) accrued interest, computed as provided in Section 2.4, to the due date of the monthly payment, plus (ii) monthly principal payments in the amounts set forth in a schedule (the "Principal Payment Schedule") to be prepared by the Bank and delivered to the Borrower after the Swap Transaction has been entered into.  The Principal Payment Schedule shall be deemed incorporated into and a part of this Agreement and attached as Exhibit A.  All principal and accrued interest of the Term Loan shall remain due and payable in full on the last day of the Term Loan Repayment Period.

 

6.             Funded Debt to EBITDA.  Section 9.3(b) (the definition of EBITDA) within the Funded Debt to EBITDA Ratio in the Agreement is amended as follows:

 

(b)            “EBITDA” is defined as, with respect to Borrower, for any twelve month period ending on the date of computation thereof, all determined on a consolidated basis in accordance with GAAP, the sum of, without duplication, (i) Consolidated Net Income, (ii) Consolidated Interest Expense, (iii) Consolidated expense for taxes based on income, profits or capital, (iv) Amortization, (v) Depreciation, (vi) Non-cash charges to the extent deducted in the calculation of net income (or net loss) for such period, non-recurring charges, less non-cash gains and non-recurring income; and (vii) EBITDA from any acquisition permitted by Section 9.5 of this Agreement and any acquisition given prior Bank consent.

 

7.             Dividends and Stock Repurchases.  Section 9.5 of the Agreement is amended to read as follows:

 

9.5.          Dividends and Stock Repurchases.  Not to declare or pay any dividends on any of its shares, and not to purchase, redeem or otherwise acquire for value any of its shares, or create any sinking fund in relation thereto, except dividends, share repurchases, share redemptions and other share acquisitions may be declared or paid and sinking funds in relation thereto may be created if:

 

FOURTH MODIFICATION

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(a)            prior to the distribution the Borrower is in compliance with Section 9.4 (Fixed Charge Coverage Ratio); AND

 

(b)            after the distribution the Borrower would be in compliance with Section 9.4 (Fixed Charge Coverage Ratio) on a pro forma basis, AND

 

(c)            no event of default has occurred and is continuing under this Agreement, and no event of default would result under this Agreement from such dividend(s) or repurchase(s).

 

8.               Permitted Acquisitions.  Section 9.14(b) of the Agreement is deleted and replaced with the following:

 

(b)            Acquire or purchase a business or its assets unless (i) the target business is in the same line of business as the Borrower, (ii) the Borrower shall remain in pro forma compliance with the financial covenants contained in this Agreement after the acquisition has been made, and (iii) at least $5,000,000 of availability is remaining on the Line of Credit after the acquisition has been made.

 

9.              Release of Woodinville Property.  Upon execution of this Fourth Modification, Bank shall record a Reconveyance Without Satisfaction of Debt releasing the Bank’s Deed of Trust on Borrower’s real property located at 14300 NE 145th Street, Woodinville, Washington 98072.

 

10.           Modification Fees.  Upon execution of this Fourth Modification, Borrower shall pay to Bank the modification fees described in the letter to Borrower from Bank dated September 20, 2013 regarding the modification of terms and conditions of the Facilities.

 

11.           Representations and Warranties.  When Borrower signs this Fourth Modification, Borrower represents and warrants to Bank that:  (a) there is no event that is, or with notice or lapse of time or both would be, an event of default under the Agreement except those events, if any, that have been disclosed in writing to Bank or waived in writing by Bank, (b) the representations and warranties in the Agreement are true as of the date of this Fourth Modification as if made on the date of this Fourth Modification, (c) this Fourth Modification does not conflict with any law, agreement, or obligation by which Borrower is bound, and (d) this Fourth Modification is within Borrower’s powers, has been duly authorized, and does not conflict with any of Borrower’s organizational papers.

 

12.           Conditions.  This Fourth Modification will be effective when Bank receives the following items, in form and content acceptable to Bank:

 

(a)            If required by Bank, evidence that the execution, delivery, and performance by Borrower of this Fourth Modification and any instrument or agreement required under this Fourth Modification have been duly authorized.

 

(b)            Modification to Bank’s deed of trust recorded in Multnomah County, Oregon and, to the extent required by Bank, endorsements to Bank’s corresponding title policy.

 

(c)            Payment of the Term Loan principal balance down to $10,800,000.

 

(d)            Payment by Borrower of the modification fees referenced in Section 10.

 

(e)            Payment by Borrower of all costs, expenses, and attorneys’ fees (including allocated costs for in-house legal services) incurred by Bank in connection with this Fourth Modification.

 

13.           Other Terms.  Except as specifically amended by this Fourth Modification or any prior amendment, all other terms, conditions, and definitions of the Agreement, and all other documents, instruments, or agreements entered into with regard to the Facilities, shall remain in full force and effect.

 

14.            FINAL AGREEMENT.  BY SIGNING THIS DOCUMENT EACH PARTY REPRESENTS AND AGREES THAT:  (A) THIS DOCUMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF, (B) THIS DOCUMENT SUPERSEDES ANY COMMITMENT LETTER, TERM SHEET, OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS RELATING TO THE SUBJECT MATTER HEREOF, UNLESS SUCH COMMITMENT LETTER, TERM SHEET, OR OTHER WRITTEN OUTLINE OF TERMS AND CONDITIONS EXPRESSLY PROVIDES TO THE CONTRARY, (C) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND (D) THIS DOCUMENT MAY NOT BE CONTRADICTED BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES.

 

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15.            STATUTORY NOTICE.  UNDER OREGON LAW, MOST AGREEMENTS, PROMISES AND COMMITMENTS MADE BY THE BANK CONCERNING LOANS AND OTHER CREDIT EXTENSIONS WHICH ARE NOT FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR SECURED SOLELY BY THE BORROWER’S RESIDENCE MUST BE IN WRITING, EXPRESS CONSIDERATION AND BE SIGNED BY US TO BE ENFORCEABLE.

 

	
DATED as of November 15, 2013.

	
 

	
 

	
 

	
	
 

	
 

	
 

	
 

	
 

	
	
Bank:

	
 

	
Borrower:

	
	
 

	
 

	
 

	
 

	
 

	
	
BANK OF AMERICA, N.A.

	
 

	
CRAFT BREW ALLIANCE, INC.

	
	
 

	
 

	
 

	
 

	
 

	
	
By

	
/s/ Michael Snook

	
 

	
By

	
/s/ Terry E. Michaelson

	
	 	
  Michael Snook, Senior Vice President

			
  Terry Michaelson, Chief Executive Officer

	

 

FOURTH MODIFICATION

 

 

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SECURITIES PURCHASE AGREEMENT

 

This Securities Purchase
Agreement (this “Agreement”) is dated as of __________ by and between Grandparents.com, Inc., a Delaware corporation
(the “Company”), and __________ (the “Purchaser”).

 

WHEREAS, subject to
the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as amended, the
Company desires to issue and sell to the Purchaser, and the Purchaser desires to purchase from the Company, certain securities
of the Company as more fully described in this Agreement.

 

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and the Purchaser agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.1         Definitions.
In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings indicated:

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 144 under the Securities Act.

 

“Business
Day” means any day other than Saturday, Sunday or other day on which commercial banks in New York, New York are authorized
or required by law to remain closed.

 

“Closing”
means the closing of the purchase and sale of the Shares and the Warrant pursuant to Section 2.1 hereof.

 

“Closing
Date” means the date of the Closing.

 

“Commission”
means the Securities and Exchange Commission.

 

“Common
Stock” means the common stock of the Company, par value $0.01 per share.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended.

 

“Lien”
means any lien, charge, claim, security interest, encumbrance, right of first refusal or other restriction.

 

“Person”
means any individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or subdivision thereof) or any court or other federal, state, local or other
governmental authority or other entity of any kind.

 

    	 

    	 

    

 

“Registrable
Securities” means (i) any of the Shares; (ii) any of the Underlying Shares issued or issuable upon the exercise of the
Warrant and (ii) any shares of Common Stock issued or to be issued with respect to the Shares or the Underlying Shares issued or
issuable upon the exercise of the Warrant by way of a stock dividend or stock split. As to any particular Registrable Security,
such security will cease to be a Registrable Security when it (x) has been effectively registered under the Securities Act and
disposed of in accordance with the registration statement covering such security, (y) has been transferred through a broker-dealer
in an open market transaction pursuant to Rule 144 (or any similar provision then in force) or (z) is eligible for sale pursuant
to Rule 144(b) (or any similar provision then in force).

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities
Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

 

“Securities”
means the Shares, the Warrant and the Underlying Shares.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Shares”
means an aggregate of __________ shares of Common Stock, which are being issued and sold to the Purchaser at the Closing.

 

“Transaction
Documents” means this Agreement, the Warrant, and any other documents or agreements executed in connection with the transactions
contemplated hereunder.

 

“Underlying
Shares” means the shares of Common Stock issuable upon exercise of the Warrant and any securities issued in exchange
for or in respect of such shares.

 

“Warrant”
means, the Common Stock purchase warrant issued and sold under this Agreement, in the form of Exhibit A, and any warrant
issued upon exercise of such warrant.

 

ARTICLE II

PURCHASE AND SALE

 

2.1         Closing.
Subject to the terms and conditions set forth in this Agreement, at the Closing the Company shall issue and sell to the Purchaser,
and the Purchaser shall purchase from the Company, __________ Shares and a Warrant to purchase __________ Underlying Shares, for
an aggregate purchase price equal to __________. The Closing shall take place at the offices of Sills Cummis & Gross, PC immediately
following the execution hereof, or at such other location or time as the parties may agree.

 

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2.2         Deliveries.
At the Closing, the Purchaser shall deliver or cause to be delivered to the Company the purchase price indicated in Section
2.1 above, in United States dollars and in immediately available funds, by wire transfer to an account designated in writing
by the Company for such purpose. Promptly following the Closing, the Company shall deliver or cause to be delivered to the Purchaser
the following: (i) one or more stock certificates, free and clear of all restrictive and other legends (except as expressly provided
in Section 4.1(b) hereof), evidencing the number of Shares in Section 2.1 above, registered in the name of the Purchaser;
and (ii) a Warrant, registered in the name of the Purchaser, pursuant to which the Purchaser shall have the right to acquire the
number of Underlying Shares indicated in Section 2.1 above, on the terms set forth therein.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

3.1         Representations
and Warranties of the Company. The Company hereby represents and warrants to the Purchaser as follows:

 

(a)          Organization
and Qualification. The Company is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction
of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry
on its business as currently conducted. The Company is not in violation of any of the provisions of its respective certificate
or articles of incorporation, bylaws or other organizational or charter documents. The Company is duly qualified to do business
and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted
or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as
the case may be, could not, individually or in the aggregate, (i) adversely affect the legality, validity or enforceability of
any Transaction Document, (ii) have or result in a material adverse effect on the results of operations, assets, prospects, business
or condition (financial or otherwise) of the Company, taken as a whole, or (iii) adversely impair the Company’s ability to
perform fully on a timely basis its obligations under any of the Transaction Documents (any of (i), (ii) or (iii), a “Material
Adverse Effect”).

 

(b)          Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery
of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby
have been duly authorized by all necessary action on the part of the Company and no further consent or action is required by the
Company, its Board of Directors or its stockholders. Each of the Transaction Documents has been (or upon delivery will be) duly
executed by the Company and is, or when delivered in accordance with the terms hereof, will constitute, the valid and binding obligation
of the Company enforceable against the Company in accordance with its terms.

 

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(c)          No
Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the
Company’s certificate or articles of incorporation, bylaws or other organizational or charter documents, (ii) conflict with,
or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement,
credit facility, debt or other instrument (evidencing a Company debt or otherwise) or other understanding to which the Company
is a party or by which any property or asset of the Company is bound or affected, except to the extent that such conflict, default
or termination right could not reasonably be expected to have a Material Adverse Effect, or (iii) result in a violation of any
law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which
the Company is subject (including federal and state securities laws and regulations and the rules and regulations of any self-regulatory
organization to which the Company or its securities are subject), or by which any property or asset of the Company is bound or
affected.

 

(d)          Issuance
of the Securities. The Securities (including the Underlying Shares) are duly authorized and, when issued and paid for in accordance
with the Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens and
shall not be subject to preemptive rights or similar rights of stockholders. The Company has reserved from its duly authorized
capital stock the number of Underlying Shares.

 

(e)          SEC
Reports; Financial Statements. The Company has filed all material reports required to be filed by it under the Securities Act
and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such
shorter period as the Company was required by law to file such material) (the foregoing materials being collectively referred to
herein as the “SEC Reports” and, together with this Agreement, the “Disclosure Materials”)
on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration
of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of
the Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated thereunder, and none of the
SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not
misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable
accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing.
Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied
on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial
statements or the notes thereto, and fairly present in all material respects the financial position of the Company and its consolidated
subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject,
in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

(f)          Absence
of Litigation. There is no action, suit, claim, proceeding, inquiry or investigation before or by any court, public board,
government agency, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting
the Company that could, individually or in the aggregate, have a Material Adverse Effect.

 

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(g)          Certain
Fees. The Company has not taken any action that would cause the Purchaser to be liable for any brokerage or finder’s
fees or commissions payable to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or
other Person engaged by the Company, if any, with respect to the transactions contemplated by this Agreement.

 

(h)          Private
Placement. Neither the Company nor any Person acting on the Company’s behalf has sold or offered to sell or solicited
any offer to buy the Securities by means of any form of general solicitation or advertising. Neither the Company nor any of its
Affiliates or any Person acting on the Company’s behalf has, directly or indirectly, at any time within the past six months,
made any offer or sale of any security or solicitation of any offer to buy any security under circumstances that would (i) eliminate
the availability of the exemption from registration under Regulation D under the Securities Act in connection with the offer and
sale of the Securities as contemplated hereby or (ii) cause the offering of the Securities pursuant to the Transaction Documents
to be integrated with prior offerings by the Company for purposes of any applicable law, regulation or stockholder approval provisions.
The Company is not, and is not an Affiliate of, an “investment company” within the meaning of the Investment Company
Act of 1940, as amended. The Company is not a United States real property holding corporation within the meaning of the Foreign
Investment in Real Property Tax Act of 1980.

 

3.2         Representations
and Warranties of Purchaser. The Purchaser hereby represents and warrants to the Company as follows:

 

(a)          Authority.
If the Purchaser is an individual, the Purchaser represents and warrants to the Company that (i) the Purchaser is at least 18 years
of age and is legally competent to execute this Agreement, (ii) this Agreement and the other Transaction Documents to which it
is a party constitute valid and binding obligations of the Purchaser enforceable against the Purchaser in accordance with the terms
hereof and thereof, and (iii) the address shown under the Purchaser’s signature at the end of this Agreement is the Purchaser’s
principal residence. If the Purchaser is an entity, the Purchaser represents and warrants to the Company that (i) the Purchaser
is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with
the requisite corporate, partnership, limited liability company or other organization power and authority to enter into and to
consummate the transactions contemplated by this Agreement and the other Transaction Documents to which it is a party and otherwise
to carry out its obligations hereunder and thereunder, (ii) the purchase by the Purchaser of the Shares and the Warrant hereunder
has been duly authorized by all necessary action on the part of the Purchaser, (iii) this Agreement and the other Transaction Documents
to which it is a party have been duly executed and delivered by the Purchaser and constitute valid and binding obligations of the
Purchaser enforceable against the Purchaser in accordance with the terms hereof and thereof, and (iv) and the Purchaser has its
principal offices or principal place of business located at the address shown under Subscriber’s signature at the end of
this Agreement

 

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(b)          Investment
Intent. The Purchaser is acquiring the Securities as principal for its own account for investment purposes only and not with
a view to or for distributing or reselling such Securities or any part thereof, without prejudice, however, to the Purchaser’s
right, subject to the provisions of this Agreement, at all times to sell or otherwise dispose of all or any part of such Securities
pursuant to an effective registration statement under the Securities Act or under an exemption from such registration and in compliance
with applicable federal and state securities laws. Nothing contained herein shall be deemed a representation or warranty by the
Purchaser to hold Securities for any period of time. The Purchaser does not have any agreement or understanding, directly or indirectly,
with any Person to distribute any of the Securities.

 

(c)          Purchaser
Status. At the time the Purchaser was offered the Shares and the Warrant, it was, and at the date hereof it is, an “accredited
investor” as defined in Rule 501(a) of Regulation D under the Securities Act. The Purchaser is not a registered broker-dealer
under Section 15 of the Exchange Act.

 

(d)          Experience
of Purchaser. The Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience
in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities,
and has so evaluated the merits and risks of such investment. The Purchaser is able to bear the economic risk of an investment
in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(e)          Access
to Information. The Purchaser acknowledges that it has received and reviewed all information about the Company it considers
necessary or appropriate for deciding whether to acquire the Securities and has been afforded (i) the opportunity to ask such questions
as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions
of the offering of the Securities and the merits and risks of investing in the Securities; (ii) access to information about the
Company and its subsidiaries and their respective financial condition, results of operations, business, properties, management
and prospects sufficient to enable it to evaluate its investment; and (iii) the opportunity to obtain such additional information
that the Company possesses or can acquire without unreasonable effort or expense that is necessary to make an informed investment
decision with respect to the investment. The Purchaser has sought such accounting, legal and tax advice as it has considered necessary
to make an informed decision with respect to its acquisition of the Securities.

 

(f)          Certain
Trading Limitations. The Purchaser agrees that beginning on the date hereof until ninety (90) days from the Closing Date, it
will not enter into any Short Sales. For purposes of this Section 3.2(f), a “Short Sale” means a sale
of Common Stock that is marked as a short sale and that is executed at a time when Purchaser has no equivalent offsetting long
position in the Common Stock. For purposes of determining whether the Purchaser has an equivalent offsetting long position in the
Common Stock, all Common Stock and all Common Stock that would be issuable upon conversion or exercise in full of all options then
held by Purchaser (assuming that such options were then fully convertible or exercisable, notwithstanding any provisions to the
contrary, and giving effect to any conversion or exercise price adjustments scheduled to take effect in the future) shall be deemed
to be held long by the Purchaser.

 

    	6

    	 

    

 

(g)          Certain
Fees. The Purchaser has not taken any action that would cause the Company to be liable for any brokerage or finder’s
fees or commissions payable to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or
other Person engaged by the Purchaser, if any, with respect to the transactions contemplated by this Agreement.

 

ARTICLE IV

OTHER AGREEMENTS OF THE PARTIES

 

4.1         Restricted
Securities; Transfers on Restrictions. The Purchaser understands that (i) the Securities are characterized as “restricted
securities” under the Securities Act; (ii) the Securities have not been and, except as otherwise provided herein, will not
be registered under the Securities Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred
unless subsequently registered thereunder or the Purchaser shall have delivered to the Company an opinion of counsel, in a generally
acceptable form and from counsel reasonably acceptable to the Company, to the effect that such Securities to be sold, assigned
or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, (iii) any sale of the Securities
made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable,
any resale of the Securities under circumstances in which the seller (or the Person through whom the sale is made) may be deemed
to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the
Securities Act or the rules and regulations of the Commission promulgated thereunder; and (iv) unless sold pursuant to a registration
statement that has been declared effective under the Securities Act or in compliance with Rule 144, the Company requires that the
Securities bear a legend referring to the foregoing restrictions (it being agreed that if the Securities are not certificated,
other appropriate restrictions shall be implemented to give effect to the foregoing) and shall place stop order instructions with
its transfer agent with respect to such Securities.

 

4.2         Integration.
The Company shall not, and shall use its best efforts to ensure that no Affiliate of the Company shall, sell, offer for sale or
solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would
be integrated with the offer or sale of the Securities in a manner that would require the registration under the Securities Act
of the sale of the Securities to the Purchaser, or that would be integrated with the offer or sale of the Securities for purposes
of the rules and regulations of any Trading Market.

 

4.3         Reservation
of Securities. The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to
the Transaction Documents in such amount as may be required to fulfill its obligations in full under the Transaction Documents.
In the event that at any time the then authorized shares of Common Stock are insufficient for the Company to satisfy its obligations
in full under the Transaction Documents, the Company shall promptly take such actions as may be required to increase the number
of authorized shares.

 

    	7

    	 

    

 

4.4         Piggy-Back
Registrations.

 

(a)          Until
such time as the Registrable Securities (as defined below) may be sold in accordance with Rule 144(b) under the Securities Act,
if the Company at any time proposes to file on its behalf and/or on behalf of any of its security holders a registration statement
under the Securities Act on any form (other than a registration statement on Form S-4 or S-8 or any successor form or to the Company’s
employees pursuant to any employee benefit plan, respectively) for the general registration of securities to be sold for cash with
respect to the Common Stock, it will give written notice to the Purchaser at least ten (10) days before the initial filing with
the Commission of the registration statement (or, in the case of a registration statement that has already been filed with the
Commission but has not yet been declared effective, within ten (10) days before the anticipated effective date of the registration
statement), which notice shall offer the Purchaser the opportunity to include in such registration statement the number of Registrable
Securities as the Purchaser may request (a “Piggyback Registration”), subject to the provisions of Section 4.4(b)
hereof. Upon the request of the Purchaser made within ten (10) days after the receipt of notice from the Company regarding a Piggyback
Registration (which such request shall specify the number of Registrable Securities for which registration is being requested),
the Company shall use its commercially reasonable efforts to effect the registration under the Securities Act of all Registrable
Securities that the Company has been so requested to register by the Purchaser; provided that nothing in this Section 4.4(a)
shall preclude the Company from discontinuing the registration of its securities being effected at any time and for any reason
before the effective date of the registration relating thereto; but, in that event, the Company shall notify the Purchaser of such
discontinuation of the registration. The Company shall pay all registration expenses in connection with each Piggyback Registration.

 

(b)          If
the lead managing underwriter of a proposed public offering by the Company shall advise the Company in writing that, in their good
faith opinion, the number of Registrable Securities to be included in such registration would materially and adversely affect the
marketing or price of the securities to be sold in the public offering, the Company will allocate the securities to be included
in such registration statement in accordance with the following priority: (i) first, the securities to be included in such registration
statement by the Company or the holder or holders initiating the registration statement; and (ii) next, the Registrable Securities
requested to be included in such registration by the Holder.

ARTICLE V

 

MISCELLANEOUS

 

5.1         Fees
and Expenses. Each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and
all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this
Agreement.

 

    	8

    	 

    

 

5.2         Entire
Agreement. The Transaction Documents, together with the Exhibits and Schedules thereto, contain the entire understanding of
the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with
respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules. At or after
the Closing, and without further consideration, the Company will execute and deliver to the Purchaser such further documents as
may be reasonably requested in order to give practical effect to the intention of the parties under the Transaction Documents.
Notwithstanding anything to the contrary herein, Securities may be assigned to any Person in connection with a bona fide margin
account or other loan or financing arrangement secured by such Company Securities.

 

5.3         Notices.
All notices and other communications required or permitted under this Agreement shall be in writing and shall be deemed effectively
given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed telex or facsimile if sent during normal
business hours of the recipient, if not, then on the next business day, (c) five days after having been sent by registered or certified
mail, return receipt requested, postage prepaid, or (d) one day after deposit with a nationally recognized overnight courier, specifying
next day delivery, with written verification of receipt. The addresses and facsimile numbers for such notices and communications
are those set forth on the signature pages hereof, or such other address or facsimile number as may be designated in writing hereafter
upon five (5) days notice, in the same manner, by such Person.

 

5.4         Amendments;
Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment,
by the Company and the Purchaser or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought.

 

5.5         Construction.
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties to express
their mutual intent, and no rules of strict construction will be applied against any party.

 

5.6         Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted
assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of
the Purchaser. The Purchaser may assign its rights under this Agreement to any Person to whom Purchaser assigns or transfers any
Securities, provided such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions
hereof that apply to the “Purchaser.” Notwithstanding anything to the contrary herein, Securities may be assigned to
any Person in connection with a bona fide margin account or other loan or financing arrangement secured by such Securities.

 

5.7         No
Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

    	9

    	 

    

 

5.8         Governing
Law; Venue; Waiver Of Jury Trail. all questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the laws of
the state of new york. THE COMPANY AND PURCHASER Hereby Irrevocably Submit To The Exclusive Jurisdiction Of The State And Federal
Courts Sitting In The CITY OF NEW YORK, BOROUGH OF MANHATTAN For The Adjudication Of Any Dispute BROUGHT BY THE COMPANY OR PURCHASER
Hereunder, In Connection Herewith Or With Any Transaction Contemplated Hereby Or Discussed Herein (Including With Respect To The
Enforcement Of Any Of The Transaction Documents), And Hereby Irrevocably Waive, And Agree Not To Assert In Any Suit, Action Or
ProceedinG BROUGHT BY THE COMPANY OR PURCHASER, Any Claim That It Is Not Personally Subject To The Jurisdiction Of Any Such Court,
OR That Such Suit, Action Or Proceeding Is Improper. Each party Hereby Irrevocably Waives Personal Service Of Process And Consents
To Process Being Served In Any Such Suit, Action Or Proceeding By Mailing A Copy Thereof Via Registered Or Certified Mail Or Overnight
Delivery (With Evidence Of Delivery) To Such Party At The Address In Effect For Notices To It Under This Agreement And Agrees That
Such Service Shall Constitute Good And Sufficient Service Of Process And Notice Thereof. Nothing Contained Herein Shall Be Deemed
To Limit In Any Way Any Right To Serve Process In Any Manner Permitted By Law. The Company AND PURCHASER Hereby Waive All Rights
To A Trial By Jury.

 

5.9         Survival.
The representations, warranties, agreements and covenants contained herein shall survive the Closing and the delivery and/or exercise
of the Securities, as applicable.

 

5.10       Execution.
This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same
agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile or electronic
transmission, including via PDF, such signature shall create a valid and binding obligation of the party executing (or on whose
behalf such signature is executed) with the same force and effect as if such facsimile or electronic signature page were an original
thereof.

 

5.11       Severability.
If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the
remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt
to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate
such substitute provision in this Agreement.

 

5.12       Remedies.
In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the Purchaser
and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages
may not be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence
and hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would
be adequate.

 

[Signature
pages to follow]

 

 

    	10

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

	 	Company:
	 	 
	 	GRANDPARENTS.COM, Inc.
	 	 	 
	 	By:	 	 
	 	 	Name: Steve Leber
	 	 	Title:   Chairman & Co-CEO

 

	 	Address for Notice:
	 	Grandparents.com, Inc.
	 	589 Eighth Avenue, 6th floor
	 	New York New York 10018
	 	Telephone: XXX
	 	Facsimile: XXX
	 	Attention: Matthew Schwartz, VP & Chief Compliance Officer
	 	 
	 	With a copy to:
	 	Sills Cummis & Gross PC
	 	One Riverfront Plaza
	 	Newark, New Jersey 07102
	 	Telephone: XXX
	 	Facsimile: XXX
	 	Attention: Jeffrey L. Wasserman, Esq.

 

	 	Purchaser:	 
	 	 	 	 
	 	By:	 	 
	 	 	 	 
	 	Address for Notice:	 
	 	 	 	 
	 	Telephone:	 	 
	 	 	 	 
	 	eMail:

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