Document:

Blueprint

 

Exhibit 10.1

 

Commercial
Billing Service

A
Division of Compass Bank  Recourse
Accounts/Electronic

P.O.
Box 2201  Transmission

Decatur,
Alabama 35602

 

MERCHANT AGREEMENT

 

This
Merchant Agreement (the "Agreement"), dated as of
________________________, 2017 (the “Effective Date”),
is made by and between Compass Bank, an Alabama banking corporation
d/b/a Commercial Billing Service (herein "Bank"), and the following
party (herein "Merchant"): jointly and severally, NDS Nutrition
Products, Inc., a Florida corporation, and iSatori, Inc., a
Delaware corporation.

 

1. 

Purchase and Sale. Merchant
agrees to sell to Bank, and Bank agrees to purchase, with full
recourse and subject to Section 2 of this Agreement and the other
terms of this Agreement, all Merchant's interest in and title to
certain present and future accounts ("Accounts") owing from
customers of Merchant ("Customers"). Accounts shall be described
more particularly by the delivery of written invoices and related
documents to Bank pursuant to Section 4 of this Agreement or by the
submission of an Electronic Transmission pursuant to Section 7 of
this Agreement. The term "Obligation" as used in this Agreement
shall mean and include Accounts.

 

2. 

Obligations to be Sold. Bank in
its sole discretion, and on an uncommitted basis, will choose
Obligations to purchase

Bank
will notify Merchant of any Obligations that Bank does not purchase
within five (5) days of Bank's receipt of such Obligation or
description thereof pursuant to Sections 4 or 7 of this Agreement.
Notwithstanding anything to the contrary contained herein, the Bank
has full recourse to Merchant for all Obligations purchased by
Bank. Bank succeeds to all rights Merchant owns in or regarding the
Obligations, including, without limitation, enforcing collection;
extending time for repayment; receiving, opening and disposing of
mail addressed to Merchant; and endorsing Merchant's name on and
negotiating Customer remittances (including checks and other
payments). For this purpose, Merchant hereby grants Bank its power
of attorney to engage in any and all of the foregoing activities.
Such power, being coupled with an interest, is irrevocable.
Merchant will hold all checks or payments on Obligations in trust
and promptly remit them in kind to Bank. Bank may set an upper
limit on the aggregate amount of Obligations owing by any
Customer.

 

3. 

Intentionally
Deleted.

 

4. 

Purchase of Obligations. Bank
will furnish Merchant a written statement for each Customer listing
an identification number and dollar limit per Customer. All
Obligations purchased by Bank must be evidenced by separate
invoices with payment terms equal to or less than 90 days (unless
otherwise approved by Bank) which reflect Bank’s name and
remittance address. Except as provided in Section 7 of this
Agreement (Electronic Transmission), within seven (7) days after
each sale of goods or services to a Customer, Merchant will deliver
or mail the invoices evidencing or constituting the Obligations to
Bank, (or to any of Bank's correspondent banks, designated by Bank,
which maintains Merchant's checking account), together with
Merchant's recap of the total amount of the Obligations and all
backup and supporting information deemed necessary by Bank, all
which must be received prior to or at the time of a funding
request. All Obligations must satisfy the Customer's requirements
for payment and show the Customer's name, address and
identification number. Bank will purchase Obligations by paying to
Merchant 100% of the face amounts of the invoices then due with
respect to such Obligations, less credits, returns, reserves or
discounts, if any. Bank will make such payments by crediting
Merchant's checking account. Prior to funding, (i) Merchant shall
notify all applicable Customers of the Bank’s purchase of the
Obligations and shall instruct such Customers to remit payments
directly to Bank, and Bank may itself at any time so notify and
instruct such Customers and (ii) Bank shall be in receipt of an
acknowledgment regarding redirection of payments to Bank from each
such Customer. Bank shall be entitled to verify the invoices in its
sole discretion.

 

 

 

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5. 

Payment. The following fees
(“Fees”) shall be due from Merchant to Bank in
connection with the Obligations purchased by Bank:

 

Non-Utilization Fee. Merchant shall pay to
Bank a Non-Utilization Fee in an amount, for any applicable period,
equal to the Libor Plus Rate (calculated as provided herein) as of
the last day of such period multiplied by the amount, if any, by
which the Minimum Utilization Amount (in the amount designated on
Annex A) exceeds the average outstanding amount of Obligations
during such period. The Non-Utilization Fee shall accrue at all
times beginning 60 days after the date of the initial purchase of
Obligations until the termination of this Agreement. The
Non-Utilization Fee shall be due and payable in arrears at the end
of each 90 day period and on the termination date of this Agreement
and shall be calculated for the applicable period then
ended.

 

Libor Plus Fee. Merchant shall pay to
Bank a Libor Plus Fee at the time the Bank receives payment for
each invoice of Customer evidencing the Obligations purchased by
Bank, or, if applicable, when the Bank requires the Merchant to
repurchase the Account relating to such Customer invoice pursuant
to the terms and conditions of this Agreement. Such “Libor
Plus Fee” shall be calculated on the basis of a 360-day year
applied to the actual number of days the Customer invoice remained
outstanding by multiplying the product of the face amount of the
Customer invoice purchased by Bank and the Libor Plus Rate
(calculated as provided herein) by the actual number of days the
Customer invoice remained outstanding, and dividing by 360.
Merchant acknowledges that the Bank will credit such Customer
invoice payment to and debit such Libor Plus Fee paid by Merchant
from Merchant’s outstanding Obligations within three (3) days
of Bank’s receipt of such Customer invoice payment, or, if
applicable, within three (3) days from Merchant’s repurchase
of the Account related to a Customer invoice as required by Bank
pursuant to the terms and conditions of this Agreement. The
“Libor Plus Rate” shall be equal to LIBOR plus 550
basis points (5.5%). The Libor Plus Rate under this Agreement is
subject to change from time to time based on changes in an
independent index which is the “LIBOR.”
“LIBOR” is the London Interbank Offered Rate for the
applicable Reference Period, determined by ICE Benchmark
Administration Limited (ICE) (or any successor or substitute
therefor), as obtained by Bank from Reuter’s, Bloomberg or
any other source providing such quotations as may be designated by
Bank from time to time (the “Rate Source”) as of the
date that is two Business Days before each Reset Date (as defined
below) (or in the event no such quotation is available on that
date, quoted on the Business Day most immediately preceding the
date of determination on which such a quotation was available), as
adjusted from time to time in Bank’s sole discretion for
then-applicable reserve requirements, deposit insurance assessment
rates and other regulatory costs. If the Rate Source states a rate
that is less than zero, the applicable rate shall be deemed to be
zero, except to the extent so adjusted by Bank. Each change in such
rate based on a change in the rate stated by the Rate Source shall
be effective from and including the first Business Day of each
month (each, a “Reset Date”). Notwithstanding the
foregoing, if for any reason Bank is not able to determine a rate
as described above, it becomes illegal for Bank to fund or maintain
purchases of Accounts as referenced herein based on the rate so
determined or Bank determines that such rate will not adequately
and fairly reflect its cost of maintaining or funding purchases of
Accounts hereunder, then upon notice to Merchant and until Bank
gives notice that such conditions no longer exist, Bank shall have
the right, in its sole discretion, to substitute an alternative
index rate selected by Bank for that rate. The “Reference
Period” means a period of one (1) month. The Reference Period
is for reference purposes only, and the index rate hereunder may
continue for a period that is longer or shorter than the Reference
Period, depending on, among other things, whether the end of the
Reference Period in a given month falls on a day other than a
Business Day. “Business Day” means each day other than
a Saturday, a Sunday, or any holiday on which Bank’s offices
are closed for business with the public. The rate defined in this
paragraph is referred to as “LIBOR” (the
“Index”).

 

6. 

Reserve Account. Bank may hold
back and apply a portion of any Purchase Price to the Reserve
Account in the amount of the Reserve Amount. The “Reserve
Account” shall mean a bookkeeping account on the books of the
Bank representing an unpaid portion of the Purchase Price,
maintained by Bank to ensure Merchant’s performance with the
provisions hereof. The “Reserve Amount” shall mean the
Reserve Percentage multiplied by the unpaid balance of the
Obligations purchased by the Bank, plus, if applicable, any amount
reserved by Bank from time to time as a result of its sole credit
judgment. The “Reserve Percentage” shall be 20%.
Merchant shall pay to Bank on demand any amount by which the
collected funds in the Reserve Account are less than the Reserve
Amount. Bank shall pay to Merchant any amount by which collected
funds in the Reserve Account are greater than the Reserve Amount
(“Reserve Excess”); provided, that the Bank will review
the Reserve Account on a bi-monthly basis and release any such
excess to the Merchant only after a review of the Reserve Account.
Before the Bank releases any Reserve Excess to Merchant, any
Accounts that are to be repurchased by the Merchant as further
described in Section 8 below will first be deducted from the
Reserve Excess. Bank may charge the Reserve Account with any
obligation, including any amounts due from Merchant to Bank
hereunder. Bank may pay any amounts due Merchant hereunder by a
credit to the Reserve Account. All Accounts to be repurchased by
the Merchant will be reconciled through the Reserve Account. NDS
Nutrition Products, Inc. and iSatori, Inc. each acknowledge and
confirm that any and all amounts held in the Reserve Account may be
used by Bank to pay any obligations owed by either NDS Nutrition
Products, Inc. or iSatori, Inc. under this Agreement.

 

 

 

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7. 

Electronic Transmission. In
lieu of Merchant's delivery of written invoices evidencing or
constituting Obligations to Bank pursuant to Section 4, Merchant
may transmit to Bank information identifying any Obligation which
Merchant wishes to sell to Bank by means of email or internet
transmission ("Electronic Transmission") subject to the terms of
this Agreement, including, without limitation, the following
terms:

 

a. 

Merchant shall
deliver to Bank by Electronic Transmission all information in a
form satisfactory to Bank which is required by Bank to describe
each specific Obligation. Bank shall be entitled to verify the
information in Electronic Transmissions.

 

b. 

Bank shall pay for
the Obligations which Bank purchases as provided in this
Agreement.

 

c. 

Electronic
Transmissions are intended only to identify Obligations, and are
not instructions for payment to any beneficiary. Payment for
Obligations identified in Electronic Transmissions and purchased by
Bank shall be subject to all provisions of this Agreement. The
parties intend that when Bank pays Merchant for an Obligation,
exclusive and unencumbered title to the Obligation shall pass to
Bank.

 

d. 

Merchant agrees
that any Obligation purchased from Merchant by Bank pursuant to an
Electronic Transmission shall be subject to this Agreement
including, without limitation, all representations and
warranties.

 

e. 

Merchant agrees
that no further act, assignment or signature shall be required in
order to transfer exclusive and unencumbered title to Bank with
respect to any Obligations purchased by Bank from Merchant pursuant
to an Electronic Transmission.

 

f. 

Merchant agrees
that an Electronic Transmission describing Obligations shall
constitute a writing, signed by Merchant and be deemed an adequate
description of the Obligations and be incorporated into the
Agreement.

 

g. 

Merchant agrees
that it will not assert a claim or defense based on any requirement
for a signed writing, whether under the Uniform Commercial Code,
any other statute or rule or common law.

 

h. 

Merchant agrees
that it shall be responsible for and indemnify and hold harmless
Bank from any loss or expense, including attorneys' fees, incurred
by Bank as a consequence of error, negligence or fraud of Merchant
or its employees in connection with any Electronic Transmission or
any failure by Merchant to deliver Electronic Transmissions in the
proper format, or any other loss arising from Bank's agreeing to
accept Electronic Transmissions.

 

Additionally,
unless Bank specifies otherwise, Merchant shall supply copies of
all Customer invoices via email or internet
transmission.

 

8. 

Repurchase of Accounts. Bank
may require that Merchant repurchase, by payment of the unpaid
amount due on the Account(s) thereof together with any unpaid fees
relating to such Account(s) purchased by the Bank on demand, or, at
Bank’s option, by Bank’s charge to the Reserve Account:
(i) any Account purchased by the Bank that is in dispute with the
Customer or against which Customer asserts an alleged claim,
defense or offset; (ii) any Account purchased by the Bank that
remains outstanding for more than 90 days past the date of purchase
by Bank from Merchant unless otherwise approved by Bank; and (iii)
all Accounts purchased by the Bank upon the occurrence of any of
the events described in Section 10(l) or upon the termination date
of this Agreement. Bank shall retain a security interest in any
Account purchased by the Bank that is repurchased by the Merchant.
Merchant agrees to notify Bank promptly of all disputes with
Customers.

 

9. 

Merchant Warranties. Merchant
hereby represents and warrants to Bank:

 

a. 

If either Merchant
is a corporation, each is duly organized and in good standing under
the laws of its incorporation state and is duly qualified and in
good standing in every other state in which it is doing business,
and the execution, delivery and performance of the Agreement are
within its corporate powers, have been duly authorized and are not
in contravention of any laws or the powers of its charter, by-laws,
or other incorporation papers, or of any indenture, agreement, or
undertaking to which Merchant is a party or by which it is
bound.

 

 

 

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b. 

Merchant has good
and clear title to the Obligations that it sells to Bank under this
Agreement and has the absolute right to sell such Obligations to
Bank.

 

c. 

Each Obligation
delivered or sold to Bank is a separate account arising from a bona
fide sale of goods or services delivered by Merchant to the named
Customer, and that the amount thereof is unconditionally due and
owing Merchant from Customer on account of such sale and is not,
and will not be, subject to any counterclaim, setoff, defense, or
other reduction.

 

d. 

Any purchase by
Bank of any Obligation shall not relieve Merchant from, or obligate
Bank to assume, any of the covenants, warranties or undertakings in
or with respect to any such Obligation to be performed by Merchant
for the benefit of its Customers.

 

e. 

Each Obligation is
due and owing within ninety (90) days of its origination date
unless otherwise approved by Bank.

 

f. 

All proceeds from
the purchase of Obligations by Bank hereunder shall be used for
general corporate purposes and to payoff Merchant’s existing
credit facility with US Bank, as approved by Bank.

 

g. 

All records of
Merchant pertaining to Obligations, general intangibles and
contract rights have always been, are and will continue to be kept
at Merchant's principal place of business located at
____________________________________________________.

 

h. 

The execution,
delivery and performance of this Agreement, the purchases of
Obligations hereunder and the use of the proceeds thereof will not
violate any governmental, licenses, authorizations, consents and
approvals applicable to Merchant or any contractual obligation
between Merchant and a third party and will not result in, or
require, the creation or imposition of any lien on any of the
Collateral or assets of Merchant pursuant to any governmental
requirements or any such third party contract (other than the
security interests and liens created by this
Agreement).

 

i. 

Merchant will
promptly pay all taxes or charges levied on or with respect to, and
will at all times keep the Collateral, free and clear of all liens,
claims, charges, security interests, mortgages, secondary financing
and encumbrances whatsoever, other than the security interests
granted to Bank hereby. Merchant agrees to take all actions that
Bank may request to establish and maintain a valid title and
security interest in the Collateral, free and clear of all other
liens, claims, charges, security interests, mortgages, secondary
financing and encumbrances whatsoever, including, without
limitation, the payment of any amounts, taxes, assessments, fees
and/or charges necessary to perfect and note Bank's interest in the
same. If such amounts, taxes, assessments, fees and/or charges
remain unpaid after the date fixed for the payment of same, or if
any lien, claim, charge, security interest, mortgage, secondary
financing or encumbrance shall arise, or be claimed or asserted
with respect to the Collateral, Bank may, without notice to
Merchant, pay such taxes, assessments, charges or claims, or take
any and all other actions (including the payment of money) deemed
desirable by Bank to remove any such lien, claim, charge, security
interest, mortgage, secondary financing or encumbrance, and
Merchant agrees that the amounts thereof, along with any amounts
necessary to perfect and note Bank's interest in any Collateral,
shall be charged to the Reserve Account described
herein.

 

j. 

Neither this
Agreement, nor any document, certificate, or statement furnished
(or to be furnished) to Bank by or on behalf of Merchant pursuant
to or in connection with this Agreement contains (or will contain)
any untrue statement of a material fact or omits (or will omit) to
state a material fact necessary to make the statements contained
herein and therein not misleading. There is no fact known to
Merchant that materially and adversely affects, or will materially
and adversely affect, the assets, business, operations, or
condition of Merchant that has not been specifically set forth in
this Agreement or otherwise disclosed by Merchant to Bank in
writing. Further, there has not been any material adverse change in
the condition, business or operations of Merchant since the date of
the balance sheets, earnings statements and other financial data
referenced in this paragraph (k).

 

k. 

Merchant hereby
represents and warrants that (i) none of its assets are, for
purposes of ERISA, considered assets of a plan; (ii) no pension
plan sponsored, maintained or contributed to by Merchant or any of
its ERISA Affiliates has an accumulated funding deficiency (whether
or not waived) under Section 412 of the Code or Section 302 of
ERISA; and (3) neither Merchant nor any ERISA Affiliate has any
unsatisfied liability for withdrawal liability with respect to any
Pension Plan which is a Multiemployer Plan.

 

 

 

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l. 

There are no
judgments, actions, suits, claims, proceedings or investigations
existing, outstanding, pending, or to the best of Merchant's
knowledge after due inquiry, threatened or in prospect, before any
court, agency or tribunal, or governmental authority against or
involving Merchant or any guarantor which do or could materially
affect the business, properties, prospects, financial condition,
earnings, results of operations or earnings capacity of Merchant or
any guarantor, which impair Merchant’s ability to perform its
obligations arising under this Agreement, or which question the
validity of this Agreement or any of the documents executed and
delivered in connection herewith, or any action or instrument
contemplated by any of them

 

m. 

Merchant shall not,
without the prior written consent of Bank, suffer to exist any lien
(including any encumbrance or security interest) of any kind upon
any of its accounts or accounts receivable, whether now owned or
hereafter acquired.

 

10. Covenants.
Merchant represents, warrants and covenants as
follows:

 

a. 

Subject to any
limitations stated therein or in connection therewith, all balance
sheets, earnings statements and other financial data which have
been or may hereafter be furnished to Bank to induce it to enter
into this Agreement, to extend credit from time to time hereunder,
or otherwise furnished in connection herewith, do or will fairly
represent the financial condition of Merchant (or other persons or
entities, as applicable) as of the dates and results of operations
for the periods for which the same are furnished in accordance with
generally accepted accounting principles consistently applied, and
all other information, reports and other papers and data furnished
to Bank shall be accurate, as of the relevant date, and correct in
all material respects and complete insofar as completeness may be
necessary to give Bank a true and accurate knowledge of the subject
matter.

 

b. 

Merchant's name,
chief executive office and principal place of business are and
always have been as set forth on the third page of this Agreement,
except as otherwise disclosed in writing to Bank. Merchant will
promptly advise Bank in writing sixty (60) days prior to any change
in Merchant's name, place of organization, organizational
identification number, chief executive office or principal place of
business.

 

c. 

Merchant is not now
and will not be in default under any agreement evidencing an
obligation for the payment of money, performance of a service or
delivery of goods, demand for performance under which, or
acceleration of the maturity of which would render Merchant
insolvent or unable to meet its other debts as they become due or
conduct its business as usual.

 

d. 

Merchant is and at
all times shall remain solvent as defined under applicable Alabama
state law and the federal bankruptcy code and is not now and has
not been in the past three (3) years a debtor under any title of
the United States Bankruptcy Code, 11 U.S.C. §§ 101, et
seq.

 

e. 

Merchant does and
shall at all times while any Liabilities remain unsatisfied comply
with all applicable laws, ordinances, rules and regulations of any
governmental authority or entity governing or affecting Merchant,
any of its property, the Collateral or any part thereof, and shall
immediately notify Bank of any and all actual, alleged or asserted
violations of any such laws, ordinances, rules or regulations.
Without limitation to the generality of the foregoing, Merchant
shall comply, and cause to be complied, with all laws, governmental
standards and regulations applicable to Merchant or any Collateral
in respect of occupational health and safety, toxic and hazardous
waste and substances and environmental matters. Merchant promptly
shall notify Bank of receipt of any notice of any actual, alleged
or asserted violation of any such law, standard or regulation.
Merchant hereby agrees to indemnify, defend and hold Bank harmless
from all loss, cost, damage, claim and expense incurred by Bank on
account of Merchant's breach of any representation, warranty or
requirement of this paragraph (e), Merchant's failure to perform
the obligations of this paragraph, and/or Merchant's or any
Collateral's violating any applicable laws, ordinances, rules or
regulations, including, without limitation, any environmental or
occupational health and safety laws or regulations. This
indemnification shall survive the satisfaction of the Obligations,
the termination of this Agreement and the exercise of any right or
remedy under this Agreement. Merchant represents that there are no
pending claims or threats of claims by private or governmental or
administrative authorities relating to environmental impairment,
conditions, or regulatory requirements involving Merchant or any
Collateral.

 

 

 

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f. 

Merchant shall (i)
preserve, renew and maintain in full force and effect its corporate
or organizational existence and (ii) take all reasonable action to
maintain all authorizations, approvals, rights, privileges and
franchises necessary or desirable in the normal conduct of its
business, except, in each case, as otherwise permitted under this
Agreement.

 

g. 

Merchant hereby
covenants and agrees that: (i) in addition to the prohibitions set
forth in this Agreement, and not in limitation thereof, Merchant
shall not assign, sell, pledge, encumber, transfer, hypothecate or
otherwise dispose of its interest or rights in this Agreement or in
the Collateral, or attempt to do any of the foregoing or suffer any
of the foregoing, if such proposed action will result in a
prohibited transaction under ERISA or the U.S. Internal Revenue
Code of 1986, as amended, and applicable U.S. Department of
Treasury regulations issued pursuant thereto in temporary or final
form (the “Code”); and (ii) Merchant shall take and
cause to be taken all necessary actions so that at all times the
assets of Merchant shall not be considered for any purpose of ERISA
or Section 4975 of the Code to be assets of a plan.

 

h. 

Merchant shall
indemnify and hold Bank free and harmless from and against all
loss, costs (including reasonable attorneys' fees and expenses),
taxes, damages and expenses Bank may suffer by reason of the
investigation, defense and settlement of claims, and in obtaining
any prohibited transaction exemption under ERISA necessary in
Bank's reasonable judgment, by reason of the inaccuracy of the
foregoing representations and warranties of Merchant or a breach of
the foregoing covenants of Merchant of this paragraph. The
obligations of Merchant under this Section shall survive the
payment in full of the Liabilities or other satisfaction
thereof.

 

i. 

Merchant shall at
reasonable times and from time to time allow Bank, by or through
any of its officers, managers, agents, employees, attorneys or
accountants to (i) examine, inspect and make extracts from
Merchant's books and records; (ii) analyze Merchant's financial
statements; (iii) arrange for verification of Merchant's accounts
and inventory under reasonable procedures, directly with Customers
or by other methods; and (iv) inspect, review and audit the
Collateral at any time during normal business hours, without prior
notice to Merchant.

 

j. 

The USA Patriot Act
of 2001 (Public Law 107-56) and federal regulations issued with
respect thereto require all financial institutions to obtain,
verify and record certain information that identifies individuals
or business entities which open an "account" with such financial
institution. Consequently, Bank may from time-to-time request, and
Merchant shall provide to Bank, Merchant's name, address, tax
identification number and/or such other identification information
as shall be necessary for Bank to comply with federal law. An
"account" for this purpose may include, without limitation, a
deposit account, cash management service, a transaction or asset
account, a credit account, a loan or other extension of credit,
and/or other financial services product.

 

k. 

The Liabilities of
Merchant arising under this Agreement are at least pari passu in
repayment with all other obligations of Merchant, if any such other
obligations are permitted hereunder.

 

l. 

In addition to
Bank's other rights, which are cumulative, Merchant will reimburse
Bank for and repurchase from Bank any Obligation purchased by Bank
with respect to which any of the following (which constitute
breaches of warranty under this Agreement) occurs:

 

(i) 

Any of the
warranties in this Section 9 is false or if the payment for any
Obligation is obtained from Bank by Merchant or its agents by
fraud.

 

(ii) 

Customer fails to
pay an Obligation for any reason and Bank has asked the Merchant to
repurchase it.

 

(iii) 

Goods relating to
the Obligation are returned or Customer claims to have returned
them or services relating to the Obligation are claimed to be
unsatisfactory by the Customer.

 

(iv) 

The Obligation
exceeds its dollar limit without Bank's prior
approval.

 

(v) 

The invoice is
illegible, or fails to comply with the requirements in Section 4 or
the Electronic Transmission fails to comply with the requirements
in Section 7.

 

(vi) 

The transaction
underlying the Obligation violates any law or
regulation.

 

 

 

 

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(vii) 

A Customer fails to
pay the Obligation, or any part thereof, claiming that Merchant
owes the Customer money or other obligation.

  

(viii) 

The Obligation is
not an account as that term is defined by the Uniform Commercial
Code.

 

(viii) 

The Obligation is
not an account as that term is defined by the Uniform Commercial
Code.

 

(ix) 

Merchant fails to
comply with this Agreement.

 

(x) 

The Obligation
arises in connection with a lease or lease/purchase transaction
between Merchant and its Customer.

 

(xi) 

The Obligation
arises in connection with a consumer transaction or is owed or
owing by a consumer.

 

(xii) 

Bank does not have
good title, free of any adverse interest, to any Obligation which
it has purchased.

 

m. 

Merchant is and
will be the sole and exclusive owner of the Merchant’s
accounts and proceeds of Merchant’s inventory free from any
lien, claim, charge, security interest, mortgage, secondary
financing or encumbrance, and Merchant will defend the Collateral
and all proceeds and products thereof against all claims and
demands of all persons at any time claiming the same or any
interest therein adverse to the interests of Bank. Merchant shall
not sell all or substantially all of its inventory or other
tangible assets without the prior written consent of
Bank.

 

n. 

Neither the
Merchant nor any affiliate of the Merchant is a Sanctioned Person,
(i) has assets in Sanctioned Countries, or (ii) derives its
operating income from investments in, or transactions with
Sanctioned Persons or Sanctioned Countries. The proceeds of this
Agreement will not be used and have not been used to fund any
operations in, finance any investments or activities in or make any
payments to, a Sanctioned Person or a Sanctioned Country. As used
herein, “OFAC” shall mean the U.S. Department of the
Treasury's Office of Foreign Assets Control. “Sanctioned
Country” shall mean a country subject to a sanctions program
identified on the list maintained by OFAC and available at
http://www.treas.gov/offices/enforcement/ofac/programs/index.shtml,
or as otherwise published from time to time. “Sanctioned
Person” shall mean (i) a person named on the list of
Specially Designated Nationals or Blocked Persons maintained by
OFAC available at
http://www.treas.gov/offices/enforcement/ofac/sdn/ , or as
otherwise published from time to time, or (ii) (A) an agency of the
government of a Sanctioned Country, (B) an organization controlled
by a Sanctioned Country, or (C) a person resident in a Sanctioned
Country, to the extent subject to a sanctions program administered
by OFAC.

 

o. 

Merchant shall
indemnify, defend and save and hold Bank (its affiliates and their
respective officers, directors, employees, advisors and agents)
harmless against any and all claims, suits, obligations, damages,
losses, liabilities, costs and expenses (including, without
limitation, attorneys’ fees), demands, penalties, fines and
forfeitures of any nature, arising out of or in any way related to
the factoring facility contemplated herein, the Agreement and any
other related documents, the sale, grant of security or any other
interest in Collateral, and the enforcement of any rights or
remedies under the Agreement or any other rights or remedies with
regard to such Collateral.

 

p. 

Merchant shall
maintain a depository account with Bank.

 

11. 

Financial Reports. Merchant
will furnish to Bank such financial information concerning Merchant
and its business at times and in form as Bank may require,
including but not limited to the following:

 

a.

the
year-end financial statements of Merchant (in form, preparation and
substance acceptable to Bank) within one hundred twenty (120) days
after the close of each of its fiscal years for annual financials,
including a balance sheet as of the close of such period, an income
statement, a reconciliation of stockholders' equity, a statement of
cash flows and an inventory valuation, reviewed by an independent
certified public accountant acceptable to Bank and analyzed in
accordance with generally accepted accounting
principles;

 

b.

monthly
financial statements of Merchant (in form, preparation and
substance acceptable to Bank) within forty-five (45) days after
each month end prepared in accordance with generally accepted
accounting principles;

 

 

 

-7-

 

 

c.

together with each
delivery of financial statements required above, the certificate of
Merchant substantially in the form of Annex C hereto signed by an
authorized officer of Merchant stating, among other things, that no
event has occurred which constitutes a failure of Merchant to
comply with or default or event of default under (but for the
requirement that notice be given, or time elapse or both) any
loans, notes, debentures, bonds, leases, or other obligations of
Merchant then outstanding, including, but not limited to, this
Agreement, or, if any such failure to comply, default or event of
default exists, specifying the nature thereof;

 

d.

such
other financial and related information when and as requested by
Bank regarding Merchant, the Collateral and any endorser, guarantor
or surety of any of the Liabilities of Merchant to
Bank..

12. 

Indemnity. Merchant will
indemnify, defend and save and hold Bank and each other Indemnitee
(as defined below) harmless from any and all claims, suits,
obligations, damages, losses, costs and expenses (including,
without limitation, reasonable attorneys’ fees), demands,
liabilities, penalties, fines and forfeitures of any nature
whatsoever, that may be asserted against or incurred by Bank or any
other Indemnitee arising out of, relating to, or in any manner
occasioned by (a) this Agreement or any other instruments or
documents evidencing any Liabilities, (b) the Obligations or any
other Collateral, or any sale, grant of security or other transfer
of any interest in any of the foregoing, under this Agreement or
otherwise, (c) the enforcement or exercise of any rights or
remedies under this Agreement or any such other instruments or
documents, or any rights or remedies with respect to any Obligation
or any other Collateral, or (d) Merchant’s sale or provision
of goods or services to any Customer. As used herein,
“Indemnitee” means each of Bank and its affiliates and
its and their respective officers, directors, employees and
agents.

 

13. 

Merchant to Pay Accounts with Other
Merchants. Merchant agrees to pay and perform at maturity
all accounts and contracts owing from Merchant to any third party,
if such third party sells or assigns such account or contract right
to Bank, without deduction or setoff for any claim or dispute which
Merchant may have with such third party.

 

14. 

Liabilities. Bank may withhold
any payments to Merchant, or apply any assets of Merchant on
deposit with or under Bank's control or in which it has a security
interest, to satisfy all present or future indebtedness or other
obligations of Merchant to Bank, whether liquidated or
unliquidated, direct or indirect, absolute or contingent, arising
under this or any other agreement or otherwise ("Liabilities"). The
term "Liabilities" does not include Obligations unless there occurs
a breach of a representation, warranty or covenant made by Merchant
to Bank with respect to such Obligation. Liabilities are due
without demand upon or notice to Merchant. As security for payment and performance
of all Liabilities, Merchant grants to Bank a continuing security
interest in any collateral now or hereafter described in any
financing statement filed against Merchant naming Bank as the
secured party (which
financing statement may describe the collateral as "All assets."),
and all of, and
Merchant's personal property, both now owned and hereafter
acquired, and wherever located, including, but not limited
to that certain collateral described on Annex B attached to
this Agreement (collectively, the "Collateral"). Upon any failure
of Merchant to pay or perform any of the Liabilities, at Bank's
option, all of the Liabilities shall become due and payable and
performable in full and Bank may collect and/or sell the Collateral
and apply the same, including, without limitation, all proceeds of
the Collateral, against the Liabilities and exercise all other
rights and remedies provided under this Agreement and applicable
law in order to satisfy the Liabilities.

 

15. 

Termination, Modification. If
Merchant violates this Agreement in any respect, or if Merchant
becomes insolvent, or a proceeding in bankruptcy is filed by or
against Merchant, then Bank may terminate this Agreement without
notice to or demand upon Merchant. This Agreement shall
automatically renew annually on the anniversary of the Effective
Date unless the Bank otherwise terminates this Agreement upon
written notice to the Merchant. Termination shall not affect Bank's
rights with respect to any transactions which occur prior to the
effective date of such termination. Bank reserves the right to
modify the terms of this Agreement as to any Fees amount upon 30
days’ written notice to Merchant. Otherwise, this Agreement
may not be modified without the written consent of both
parties.

 

16. 

Financing Statement. Merchant
authorizes Bank to execute and file in Merchant's name with the
Uniform Commercial Code (“UCC”) filing office in
Merchant’s state of organization (as determined by the UCC)
financing statements covering the Collateral and hereby grants Bank
its power of attorney to execute such financing statements in
Merchant's name. Such power, being coupled with an interest, is
irrevocable. Merchant agrees to execute and deliver any and all
financing statements and other papers as Bank may reasonably
require in connection with this Agreement.

 

 

 

-8-

 

 

17. 

Intention to Construe Transactions as
True Sales. It is the intention of the parties to enter into
a purchase and sale agreement and not a loan, borrowing or
financing; however, the parties agree that should any portion of
the Agreement be construed a loan, borrowing or financing, that
portion of the Agreement shall have a structure that will comply
with any applicable usury law. Notwithstanding the applicable Fees
specified herein, if on any day the use of such fee would be deemed
to result in an interest rate which exceeds the Maximum Allowable
Rate (as defined below) for that day, then the applicable Fee shall
be the Maximum Allowable Rate on such day.

 

"Maximum Allowable
Rate" means, on any day, the maximum nonusurious rate of interest
permitted for that day by applicable law, stated as a rate per
month. It is expressly acknowledged and agreed that Alabama law,
including without limitation the laws governing interest, shall be
applicable to this Agreement and shall establish the Maximum
Allowable Rate; provided, however, that if for any reason
whatsoever it is determined by a court of competent jurisdiction
that, notwithstanding the Merchant's and the Bank's express
agreement that no law other than Alabama law shall be applicable to
this Agreement with respect to usury, on any day that any other law
is deemed applicable, the Maximum Allowable Rate shall be the
maximum nonusurious rate of interest applicable to an entity such
as Merchant in the applicable jurisdiction.

 

If for
any reason Merchant's performance of an agreement or obligation
under this Agreement involves exceeding the limit of validity
prescribed by applicable law, then such agreement or other
obligation shall be reduced to the limit of such validity, and if
for any reason amounts paid under this Agreement during its full
term are deemed interest which produces a rate which exceeds the
Maximum Allowable Rate, Bank shall refund to Merchant such portion
of said interest as shall be necessary to cause the interest paid
on this Agreement to produce a rate equal to the Maximum Allowable
Rate.

 

18. 

Fees. Merchant and Bank agree
that the Fees constitute consideration to Bank for services in,
among other things, making credit investigations, supervising the
ledgering and collection of Obligations, and generating reports.
The Fees also represent consideration for other out of pocket
expenses such as the preparation of this Agreement, insurance
premiums, public records search fees, filing fees,
etc.

 

19. 

Expenses. Irrespective of
whether any Obligations are purchased hereunder, Merchant shall pay
all fees and expenses, including, without limitation, legal fees
and expenses, filing fees, insurance premiums and expenses,
appraisal fees, recording costs and taxes (except taxes measured by
Bank's income) incurred by Bank or Merchant from time to time in
connection with the preparation and closing, filing,
administration, amendment and modification of this Agreement and
those documents and instruments associated with the perfection and
creation of the security interests and other rights granted
pursuant hereto and Bank's selling, negotiating, documenting and/or
enforcing participations in the factoring arrangement established
under this Agreement. Merchant shall pay to Bank on demand any and
all such fees and expenses incurred or paid by Bank, together with
any and all fees, expenses and costs (a) of collection or (b)
otherwise incurred or paid by Bank in protecting, enforcing or
realizing its rights upon or with respect to any of the Liabilities
or the Collateral (including, without limitation, reasonable
counsel fees, including, without limitation, those incurred in
connection with any appeal or any bankruptcy proceedings). After
deducting all of said fees and expenses, the residue of any
proceeds of collection or sale of Liabilities or Collateral shall
be applied to the Liabilities and interest, charges and expenses
constituting or related to the Liabilities in such order of
preference as Bank may determine, proper allowance for Liabilities
not then due being made, and, to the extent allowed by law, without
limiting any of Merchant's or any guarantor's obligations or any of
Bank's rights under this Agreement, Merchant and guarantors shall
remain liable for any deficiency.

 

 

 

-9-

 

 

20. 

Miscellaneous. This Agreement
supersedes all previous agreements or understandings between the
Bank's Commercial Billing Service division and Merchant. This
Agreement may not be assigned except that Bank may assign this
Agreement to its parent or wholly owned subsidiary of Bank or its
parent or any other third party. This Agreement has been negotiated
and is being executed and delivered in the State of Alabama, or if
executed elsewhere, shall become effective upon Bank's approval,
acceptance and execution of the original of this Agreement in
Alabama. Alabama law shall apply to the Agreement and the
transactions contemplated hereby, except that the laws of the state
of Merchant's residence shall apply to the extent necessary to give
full effect and enforcement to Bank's rights hereunder. Bank shall
not be deemed to have waived any of its rights upon or under any of
the Liabilities or Collateral unless such waiver be in writing and
signed by Bank. No course of dealing and no delay or omission on
the part of Bank in exercising any right shall operate as a waiver
of such right or any other right. A waiver on any one occasion
shall not be construed as a bar to or waiver of any right on any
future occasion. In the event any one or more of the terms or
provisions contained in this Agreement, in any of the other
documents executed and delivered in connection herewith or in any
other instrument or agreement referred to herein or executed in
connection with or as security for the Liabilities, or any
application thereof to any person or circumstances, shall be
declared prohibited, illegal, invalid or unenforceable to any
extent in any jurisdiction, as determined by a court of competent
jurisdiction, such term or provision, in that jurisdiction, shall
be ineffective only to the extent of such prohibition, illegality,
invalidity or unenforceability, or as applied to such persons or
circumstances, without invalidating or rendering unenforceable the
remaining terms or provisions hereof or thereof or affecting the
validity or enforceability of such term or provision in any other
jurisdiction or as to other persons or circumstances in such
jurisdiction, unless such would effect a substantial deviation from
the general intent and purpose of the parties, make a significant
change in the economic effect of the transactions contemplated
herein on Bank, or impair the validity or perfection of Bank's
security interest in any Collateral or the validity of any guaranty
or other security for the Liabilities, in which event a substitute
provision shall be supplied by the court in order to provide Bank
with the benefits intended by such invalid term or
provision.

 

21. 

Waiver of Trial by Jury.
BANK AND MERCHANT HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JURY IN
RESPECT OF ANY LITIGATION BASED HEREON OR ARISING OUT OF, UNDER, OR
IN CONNECTION WITH THIS AGREEMENT, THE LOAN, THE LIABILITIES, ALL
OTHER DOCUMENTS GIVEN TO EVIDENCE OR SECURE THIS AGREEMENT AND/OR
THE LIABILITIES, OR ANY COURSE OF CONDUCT, COURSE OF DEALING OR
STATEMENTS RELATED THERETO (WHETHER VERBAL OR
WRITTEN).

 

22. 

Attorneys' Fees. If any amounts
owed to Bank under this Agreement are collected by or through an
attorney at law, then Merchant agrees to pay Bank's reasonable
attorneys' fees.

 

 

-10-

 

 

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed all as of the day and year first written
above.

 

 

MERCHANT:

 

NDS NUTRITION PRODUCTS,
INC.,

a
Florida corporation

 

By:

Its:

Date:

 

 

iSATORI,
INC.,

a
Delaware corporation

 

By:

Its:

Date:

 

 

 

 

APPROVED,
ACCEPTED AND EXECUTED

in the
State of Alabama by

COMPASS
BANK,

d/b/a
Commercial Billing Service

 

By:                                                                            

       
Sherri Edgil
        Its: SVP and
Director of Operations

 

 

 

-11-

 

 

ANNEX A

 

SPECIFIC TERMS APPLICABLE TO TRANSACTION

 

	

 

Minimum
Utilization Amount

	

 

$3,000,000.00

 

 

 

 

-12-

 

 

ANNEX B

 

COLLATERAL

 

All
present and future inventory, accounts, accounts receivable,
general intangibles and returned goods, together with all reserves,
balances, deposits, and property at any time owing to the credit of
Merchant with Bank and any and all substitutions, accessions,
additions, parts, accessories, attachments, replacements, proceeds
and products of, for and to inventory, whether now or hereafter
owned, existing, created, arising or acquired.

 

 

 

 

-13-

 

 

ANNEX C

 

COMPLIANCE CERTIFICATE

 

CERTIFICATE

 

Reference is made to that certain Merchant
Agreement (the "Agreement") executed by NDS NUTRITION PRODUCTS, INC.
and iSATORI, INC. (together,
jointly and severally, "Merchant"), in favor of COMPASS BANK d/b/a Commercial
Billing Service ("Bank"), on or
about _________________ ___, 2017. Capitalized terms used but not
defined herein shall have the meaning attributed to the same in the
Agreement. Merchant hereby represents, warrants and covenants to
and in favor of Bank as follows:

 

(a)

no
default or event of default (or any event that would constitute an
event of default but for the requirement that notice be given or
time elapse or both) has occurred or is continuing under the
Agreement or under any other loans, notes, debentures, bonds,
leases or other obligations of Merchant now
outstanding;

 

(b)

all
representations, warranties and covenants contained in the
Agreement are expressly reaffirmed and restated as of the date
hereof;

 

(c)

neither
Merchant nor, to the best of Merchant's knowledge, any other party
has any matured or unmatured claim, offset or cause of action
against Bank or its officers, agents or affiliates arising under or
in connection with the Liabilities; and

 

(d)

all
financial statements, reports and other documents delivered to Bank
on or before the date hereof under or in connection with the
Agreement are, as of the relevant date, complete and accurate and
may be relied upon by Bank.

 

 

NDS NUTRITION PRODUCTS,
INC.,

a
Florida corporation

 

By:                                                       

Its:                                                       

Date:                                                       

 

 

iSATORI,
INC.,

a
Delaware corporation

 

By:                                                       

Its:                                                       

Date:                                                       

 

 

-14-Blueprint

 

Exhibit 10.2

CONTINUING GUARANTY

 

(1) FOR
VALUABLE CONSIDERATION, the receipt and sufficiency of which is
hereby acknowledged, the undersigned (hereinafter called
“Guarantor”)
unconditionally guarantees and promises to pay to Compass Bank d/b/a Commercial Billing
Service (hereinafter called “Bank”) or order in lawful money of
the United States, any and all Indebtedness of NDS Nutrition Products, Inc., a Florida
corporation and iSatori,
Inc., a Delaware corporation (jointly and severally,
hereinafter called “Seller”, whether one or more), to
Bank. The word “Indebtedness” is used herein in
its most comprehensive sense and includes (i) all indebtedness and
recourse obligations of Seller to Bank, (ii) charges, fees and
expenses assessed by Bank against the account of the Seller or
otherwise properly charged by Bank to Seller, and (iii) any and all
other obligations and liabilities of Seller (or any of them, if
more than one) to Bank, and, as to (i)-(iii) above, heretofore,
now, or hereafter existing, made, incurred or created, whether
voluntary or involuntary and arising under, pursuant to or in
connection with a factoring facility, as evidenced by a Merchant
Agreement between Seller to Bank dated as of the ___ day of
_______________, 2017, and whether due or not due, absolute or
contingent, liquidated or unliquidated, determined or undetermined,
and not limited to, but including principal, interest, cost of
collection, attorney's fees and all other lawful charges, and
whether Seller may be liable individually or jointly with others,
or whether recovery upon such Indebtedness may be or hereafter
become barred by any statute of limitations, or whether such
Indebtedness may be now or hereafter become otherwise
unenforceable. The word “Indebtedness” also shall include
(a) all interest, (b) all charges, fees and expenses assessed by
Bank (or any affiliate of Bank, as applicable) against the account
of the Seller or otherwise properly charged by Bank (or such
affiliate) to Seller, and (c) all other obligations incurred by the
Seller, and, as to (a)-(c) above, arising under any agreement
between Seller and Bank or any affiliate of Bank, whether now
existing or hereafter entered into, which provides for an interest
rate currency, equity, credit or commodity swap, cap, floor or
collar, spot or foreign currency exchange transaction, cross
currency rate swap, currency option, any combination of, or option
with respect to, any of the foregoing or similar transactions, for
the purpose of hedging the Seller’s exposure to fluctuations
in interest rates, exchange rates, currency, stock, portfolio or
loan valuations or commodity prices, excluding, however, any
Excluded Swap Obligation (as defined below). This Guaranty is a guarantee of the
Indebtedness, and not just a guarantee of the obligations of the
Seller thereunder.

 

As used
in this Guaranty, (i) the term “Documents” shall mean all
documents given to evidence or secure, or otherwise executed in
connection with, the Indebtedness or any portion thereof, and (ii)
the term “Excluded Swap
Obligation” shall mean any Swap Obligation (as
hereinafter defined) if, and to the extent that, all or a portion
of the guarantee by Guarantor of, or the grant by Guarantor of a
security interest to secure, such Swap Obligation (or guarantee
thereof) is or becomes illegal under the Commodity Exchange Act or
any rule, regulation or order of the Commodity Futures Trading
Commission (or the application or official interpretation of any
thereof) by virtue of Guarantor’s failure for any reason to
constitute an “eligible contract participant” as
defined in the Commodity Exchange Act and the regulations
thereunder at the time of the guarantee of Guarantor or the grant
of such security interest becomes effective with respect to such
Swap Obligation; (iii) the term "Swap Obligation" shall mean any
obligation to pay or perform under any agreement, contract or
transaction that constitutes a “swap” within the
meaning of Section 1a(47) of the Commodity Exchange Act; and (iv)
the term "Commodity Exchange Act" shall mean the Commodity Exchange
Act (7 U.S.C. § 1 et seq.), as amended from time to
time.

 

(2) The liability
of Guarantor shall be unlimited and shall cover all Indebtedness of
Seller (or any or all of them if more than one) to Bank. This is a
continuing guaranty relating to any Indebtedness, including
Indebtedness arising under successive transactions which shall
either continue or modify Indebtedness or from time to time renew
or modify Indebtedness after such Indebtedness has been satisfied.
Guarantor agrees that the Indebtedness extends to and includes any
and all liability for environmental indemnities contained in the
Documents. Notwithstanding any other provision of this Guaranty,
the provisions of this paragraph shall automatically expire and be
of no further force and effect if, as and when (i) the Indebtedness
has been paid in full and the Bank has no obligation or
discretionary right to make further advances under the Documents,
(ii) such payments have become final and are not subject to being
voided or refunded under the United States bankruptcy code or other
applicable law, and (iii) such satisfaction of Indebtedness did not
result from or was not related to the Bank accepting or acquiring
title to any real property (the “Property”) covered by the
environmental indemnities referenced above, whether by foreclosure,
deed in lieu of foreclosure, or otherwise. The Guarantor agrees
that, unless the provisions of this paragraph shall automatically
expire pursuant to the provisions of the preceding sentence, the
Guarantor's guaranty of the Indebtedness with respect to the
matters set forth in this paragraph shall survive indefinitely, and
shall not be extinguished by the payment of the Indebtedness, the
exercise of any right or remedy under any of the Documents
including, but not limited to, foreclosure or the taking of a deed
in lieu of foreclosure, or any subsequent sale or transfer of such
Property.

 

 
-1-

 

 

This
Guaranty may not be revoked with respect to (i) any outstanding
Indebtedness, or (ii) any advances, credit extensions or payments
made under any commitment, credit arrangement or other agreement
relating to any Indebtedness which permits, provides for or
obligates Bank to make advances, extensions of credit or payments
on behalf of others, including without limitation any construction
loan, line of credit, letter of credit, or advances or payments for
protection of collateral. With respect to other obligations, this
Guaranty shall remain in effect until Bank's written acknowledgment
of Bank's receipt of a written notice of revocation by Guarantor
which revocation does not attempt to revoke liability for any of
the liabilities described in the first sentence of this paragraph.
Any revocation which attempts to revoke Guarantor’s liability
for any of the liabilities described in the first sentence of this
paragraph shall be void and of no force or effect, whether or not
received, acknowledged or accepted by Bank unless Bank executes a
separate written termination of this Guaranty.. Notwithstanding
anything to the contrary contained or implied herein or in any
other document, this Guaranty may not be revoked or terminated,
other than with the prior written consent of the Bank, except upon
strict compliance with the conditions and requirements heretofore
set forth in this Section (2) . In the event any sums or other
things of value that are paid or transferred to or otherwise
received by the Bank are rescinded, recovered, required to be
returned, set aside, rendered void or otherwise adversely affected
in any legal proceeding or for any cause whatsoever, including
under any law, rule or regulation relative to bankruptcy,
insolvency, fraudulent transfers or other relief of debtors, then
this Guaranty shall continue to be effective or shall be revived
and reinstated, as necessary in order to give full effect to the
Guarantor’s liability hereunder, to the same extent as if
such payment, transfer and/or receipt had never occurred. This
Guaranty shall not release, modify, revoke or terminate any other
guaranty heretofore or hereafter executed by any other guarantor of
any or all of the Indebtedness (individually and collectively,
“Other
Guarantors”). No other guaranty heretofore or
hereafter executed by any Other Guarantors shall release, modify,
revoke or terminate this Guaranty. This Guaranty shall not release,
modify, revoke or terminate any other guaranty heretofore or
hereafter executed by the Guarantor unless this Guaranty
specifically references such other guaranty and the release,
modification, revocation or termination thereof and the same is
accepted by Bank in writing. No other guaranty heretofore or
hereafter executed by the Guarantor shall release, modify, revoke
or terminate this Guaranty unless such guaranty specifically
references this Guaranty and the release, modification, revocation
or termination thereof and the same is accepted by Bank in
writing.

 

(3) The
obligations of Guarantor hereunder are independent of the
obligations of Seller and of any Other Guarantors. A separate
action or actions may be brought and prosecuted against the
Guarantor whether action is brought against Seller or any Other
Guarantors or whether the Seller or any Other Guarantors are joined
in any such action or actions.

 

(4) It is the
intent hereof that this obligation of Guarantor shall be and remain
unaffected, (a) by the existence or non-existence, validity or
invalidity, of any pledge, assignment or conveyance given as
security; or (b) by any understanding or agreement that any other
person, firm or corporation was or is to execute this or any other
guaranty, any of the notes evidencing the Indebtedness, or any part
thereof, or any other document or instrument or was or is to
provide collateral for any Indebtedness; or (c) by resort on the
part of Bank, or failure of Bank to resort, to any other security
or remedy for the collection of said Indebtedness; or (d) by the
death, bankruptcy, insolvency, dissolution or incapacitation of any
of the Guarantor, Other Guarantors, Seller or any other person, and
in case of any such death or bankruptcy, the failure of Bank to
file a claim against the deceased Guarantor's estate or against
such bankrupt’s estate, or the failure of Bank otherwise to
seek remedies as a consequence of such events.

 

(5) Guarantor
authorizes Bank, without notice or demand and without affecting
Guarantor's liability hereunder, from time to time to (a) renew,
compromise, extend, accelerate, restate, consolidate, replace,
refinance or otherwise change the time for payment of, or otherwise
change the terms of, the Indebtedness or any part thereof,
including increasing or decreasing the rate of interest thereof;
(b) take and hold security for the payment of this Guaranty or any
of the Indebtedness and/or exchange, modify, enforce, waive and
release any such security; (c) apply such security and direct the
order or manner of sale thereof as Bank in its discretion may
determine; and/or (d) release or substitute the Seller, any of the
Other Guarantors and any other obligors or endorsers of all or any
part of the Indebtedness.

 

 

 

-2-

 

 

(6) Guarantor
waives any right to require Bank (a) to proceed against the Seller
or Other Guarantors; (b) to protect, preserve, proceed against or
exhaust any security held from Seller; or (c) to pursue any other
remedy in Bank's power whatsoever. Guarantor waives any defense
arising by reason of any disability or other defense of the Seller,
Guarantor, or Other Guarantors (including any defense based on or
arising out of the unenforceability of any part of the Indebtedness
for any cause whatsoever), or by reason of the cessation from any
cause whatsoever of the liability of the Seller, Guarantor or Other
Guarantors. Until all Indebtedness shall have been paid in full,
Guarantor shall not have any rights of subrogation, reimbursement,
contribution or indemnity or any right of recourse to any assets or
properties of the Seller or any of the Other Guarantors, and
Guarantor waives (i) all such rights, if any, of subrogation,
reimbursement, contribution, indemnity and recourse, (ii) any right
to enforce any remedy which Bank now has or may hereafter have
against the Seller or any Other Guarantor, and (iii) any benefit
of, and any right of recourse to or to participate in any security
now or hereafter held by Bank or otherwise constituting collateral
for any Indebtedness. Guarantor waives all presentments, demands
for performance, notices of nonperformance, notice of acceleration,
notice of intent to accelerate, protests, notices of protest,
notices of dishonor, and notices of acceptance of this Guaranty and
of the existence, creation, or incurrence of new or additional
Indebtedness, and waives any rights of defenses based, in whole or
in part, upon an offset by Guarantor, Seller or Other Guarantors
against any obligation or Indebtedness now or hereafter owed to the
Seller, Guarantor or Other Guarantors (including to Guarantor by
Seller). Guarantor waives the benefit of any statute of limitations
or other defenses affecting Seller's liability for the Indebtedness
or the enforcement thereof or such Guarantor's liability hereunder
or the enforcement thereof, and Guarantor further agrees that any
payment by Seller or other circumstances that operate to toll any
statute of limitations as to the Seller shall operate to toll the
statute of limitations as to Guarantor. Guarantor waives any rights
to exemption under the constitution of the State of Alabama or any
other state as to any Indebtedness or obligation created
hereunder.

 

(7) In
addition to all liens upon, and rights of setoff against, moneys,
securities or other property of the Guarantor given to Bank by law,
Bank shall have and hereby is granted a lien upon, security
interest in and a right of setoff against all moneys, securities
and other property of the Guarantor now or hereafter in the
possession of or on deposit with Bank, whether held in a general or
special account or deposit, or for safekeeping or otherwise; and
every such lien, security interest and right of setoff may be
exercised without demand upon or notice to Guarantor or any Other
Guarantor. No lien, security interest or right of setoff shall be
deemed to have been waived by any act or conduct on the part of
Bank, or by any failure to exercise such right of setoff or to
enforce such lien or security interest, or by any delay in so
doing, and every right of setoff and lien shall continue in full
force and effect until such right of setoff or lien specifically is
waived or released in a written instrument executed by
Bank.

 

(8) Any
indebtedness of Seller to Guarantor, whether now existing,
hereafter arising, secured or unsecured, and if secured, the
security for same, hereby is subordinated to the Indebtedness; and
such subordinated indebtedness, if Bank so requests, shall be
collected, enforced and received by Guarantor as trustee for Bank
and be paid over to Bank on account of the Indebtedness but without
reducing or affecting in any manner the liability of any Guarantor
under this Guaranty.

 

(9) Where the
Guarantor or Seller is a corporation, partnership, joint venture,
trust, limited liability company, business organization or
enterprise, it shall not be necessary for Bank to inquire into the
power or authority of Seller or Guarantor or the officers,
directors, partners, trustees or agents or purporting to act on
their behalf.

 

(10) Guarantor
shall pay attorney's fees and all other costs and expenses which
are incurred by Bank in the enforcement of this
Guaranty.

 

 

 

-3-

 

 

(11) No right,
privilege, remedy or power of Bank hereunder shall be deemed to
have been waived by any act or conduct or failure or delay to act
on the part of the Bank or any of its agents, employees or
representatives; and the terms and provisions hereof may not be
waived, altered, modified, or amended except in writing duly signed
by a duly authorized officer of the Bank. In the event that Bank
shall waive in writing any provision or requirement hereunder, such
waiver shall be effective only for the specific purposes,
circumstances and duration stated in said waiver. Bank may without
notice assign this Guaranty in whole or in part and each reference
herein to Bank shall be deemed to include its successors and
assigns. The provisions of this Guaranty are binding upon the
Guarantor and the heirs, distributees, executors, administrators,
legal representatives, personal representatives, successors and
assigns thereof and shall inure to the benefit of the Bank and each
of its successors and assigns. THIS
GUARANTY AND THE RIGHTS AND OBLIGATIONS OF GUARANTOR AND BANK
HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF ALABAMA. Guarantor acknowledges that
any cause of action arising under this Guaranty will be a cause of
action arising from an Alabama transaction and that the
Indebtedness is owing to a banking organization under Alabama law
or that has its principal place of business in Alabama, that it is
foreseeable that this Guaranty and the performance hereof have and
will have significant effects in the State of Alabama, and that
Guarantor's execution of this Guaranty will subject Guarantor to
judicial jurisdiction in the State of Alabama. If any of the
provisions of this Guaranty or the application thereof to any
person or circumstance shall, to any extent, be invalid or
unenforceable, the remainder of the provisions of this Guaranty, or
the application of such provision or provisions to persons or
circumstances other than those as to whom or which it is held
invalid or unenforceable, shall not be affected thereby, and every
provision of this Guaranty shall be valid and enforceable to the
fullest extent permitted by law. Except as expressly set forth in
this Guaranty, this Guaranty is the entire agreement of the
Guarantor and the Bank with respect to the guarantee of the
Indebtedness by the Guarantor and no representation, understanding,
promise or condition concerning the subject matter hereof shall be
binding upon the Bank unless expressed herein. Any notice by
Guarantor to Bank shall be effective only upon the actual receipt
thereof by the General Counsel of Bank at Bank’s office in
Decatur, Alabama.

 

(12) Guarantor
hereby irrevocably submits to the exclusive jurisdiction of the
State of Alabama and the United States District Court located in
Birmingham, Alabama, and waives any objection it might have to the
laying of venue of any suit, action or proceedings related to this
Guaranty (“Proceedings”) brought in any such court,
waives any claim that such Proceedings have been brought in an
inconvenient forum, and waives the right to object, with respect to
such Proceedings, that such court does not have any jurisdiction
over Guarantor.

 

(13) BANK
AND GUARANTOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY, TO
THE EXTENT PERMITTED BY APPLICABLE LAW, WAIVE ANY RIGHTS THEY MAY
HAVE TO TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON OR
ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS GUARANTY, THE
LOAN, ANY MORTGAGE, ALL OTHER DOCUMENTS GIVEN TO EVIDENCE OR SECURE
THE LOAN, OR ANY COURSE OF CONDUCT, COURSE OF DEALING OR STATEMENTS
RELATED THERETO (WHETHER VERBAL OR WRITTEN).

 

(14) This
Guaranty is given under the seal of all parties hereto, and it is
intended that this Guaranty is and shall constitute and have the
effect of a sealed instrument according to law.

 

 

[Remainder of page intentionally blank]

[Signature page follows]

 

 

 

-4-

 

 

IN WITNESS WHEREOF, the undersigned Guarantor has executed
this Guaranty effective the ______ day of
_________________________, 2017.

 

	
 

 

Address:  

	

GUARANTOR:

 

FITLIFE BRANDS, INC.,

a
Nevada corporation

 

 

By: 

Its: 

Date
Signed:  

 

 

 

STATE
OF      

 

COUNTY
OF      

 

I,________________,
a notary public in and for said county in said state, hereby
certify that ________________
, whose name as ________________

of FitLife Brands, Inc., a Nevada corporation, is signed to the
foregoing instrument and who is known to me, acknowledged before me
on this day that, being informed of the contents of such
instrument, he, as such   and with full authority,
executed the same voluntarily for and as the act of said
corporation.

 

Given
under my hand and official seal this  day
of    , 2017.

 

   
                 
                 
                
________________________________

                                                        
Notary Public

[Notorial Seal]
                 
              My Commission
Expires: _________________________

 

 

 

-5-

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