Document:

cvgw_EX_10-3

		

			 

		

		
			Exhibit 10.3
		

		
			 
		

		
			SEVENTH AMENDMENT TO SENIOR PROMISSORY NOTE
		

		
			 
		

		
			THIS SEVENTH AMENDMENT TO SENIOR PROMISSORY NOTE (“Seventh Amendment” or “Amendment”) is entered into and effective as of October 8, 2019, by and between CALAVO GROWERS, INC., a California corporation (“Lender”), located at 1141-A Cummings Road, Santa Paula, CA 93060, and FRESHREALM, LLC, a Delaware limited liability company (“Borrower”), located at 34 N Palm St Suite 100, Ventura, CA 93001.  Lender and Borrower are sometimes collectively referred to herein as the “Parties.”  Capitalized terms not otherwise defined herein shall have the same meaning as those capitalized terms defined in that certain Sixth Amended and Restated Senior Promissory Note (the “Note”) dated September 18, 2019, by and between the Parties.
		

		
			 
		

		
			RECITALS
		

		
			WHEREAS, Borrower and Lender previously entered into the Note evidencing Lender’s then total outstanding amount loaned to Borrower of Thirty-Three Million Seven Hundred Forty-Two Thousand Thirteen Dollars and Seventy Cents ($33,742,013.70) (the “Loan Amount”, as defined in the Note);
		

		
			 
		

		
			WHEREAS, in connection with such Loan Amount, Lender has a first-priority security interest in all of the assets and collateral of Borrower pursuant to an amended Security Agreement by and between Lender and Borrower, dated September 18, 2019 (“Security Agreement”);
		

		
			 
		

		
			WHEREAS, in addition to the Loan Amount, Borrower has requested from Lender an additional loan of One Million One Hundred Thousand Dollars ($1,100,000) (the “Additional Loan Amount”), and Lender desires to loan Borrower the Additional Loan Amount by amending the Note, pursuant to this Seventh Amendment, wherein such Additional Loan Amount shall also be secured, on a first priority basis, in all of the assets and collateral of Borrower pursuant to the Security Agreement; and
		

		
			 
		

		
			WHEREAS, the Parties now desire to enter into this Seventh Amendment to account for the Additional Loan Amount, and to amend and modify the Note on the terms and conditions set forth in this Seventh Amendment; however, except for as provided herein, the Note and its terms shall continue in full force and effect.
		

		
			 
		

		
			TERMS AND CONDITIONS
		

		
			NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises, covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:
		

		
			 
		

		
			1.         Additional Loan Amount.  In addition to the previous total and original Loan Amount of Thirty-Three Million Seven Hundred Forty-Two Thousand Thirteen Dollars and Seventy Cents ($33,742,013.70) stated and owed by Borrower to Lender under the Note, as
		

		
			
		

		
			

		 

		

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			of the date hereof, Lender shall loan and advance to Borrower the Additional Loan Amount of One Million One Hundred Thousand Dollars ($1,100,000), pursuant to the loan terms of the Note (including, but not limited to, interest rate, Maturity Date, Events of Default, and all other terms and conditions therein), and the Additional Loan Amount pursuant hereto shall become a part of the total principal amount due to Lender by Borrower under the Note for a total of Thirty-Four Million Eight Hundred Forty-Two Thousand Thirteen Dollars and Seventy Cents ($34,842,013.70), wherein such total principal amount due by Borrower to Lender, as a result hereof, shall be referred to as the Loan Amount under the Note.
		

		
			 
		

		
			2.         Principal Due and Loan Amount.  As a result of the advance by Lender to Borrower of the Additional Loan Amount pursuant hereto, all references to the “Loan Amount” as stated in the Note shall mean the principal amount due by Borrower to Lender in the amount of Thirty-Four Million Eight Hundred Forty-Two Thousand Thirteen Dollars and Seventy Cents ($34,842,013.70).  For purposes of clarification, such principal and revised Loan Amount does not include interest accrued to date on the original Loan Amount under the Note, and nothing herein shall relieve or cancel Borrower’s obligation and responsibility to pay to Lender such accrued interest pursuant to the terms of the Note.
		

		
			 
		

		
			3.         Security Interest.  As stated in the Note and in the Security Agreement, Borrower has previously granted a security interest to Lender in all of Borrower’s assets, and any payments and obligations of the total Loan Amount (including, but not limited to the Additional Loan Amount) are secured by all of the assets of Borrower on a first-priority basis as further described in the Security Agreement between Lender and Borrower.
		

		
			 
		

		
			4.         Eligible Funds and Capital Call Round.  Due to the advance by Lender to Borrower of the Additional Loan Amount hereunder, such Additional Loan Amount shall be considered “Additional Amounts”, as defined in Section 2(c) of the Note.  As a result, as defined and described under Section 2(d) of the Note, the Additional Loan Amount under this Seventh Amendment shall be considered “Eligible Funds”, and in its sole discretion, but without any obligation to do so, Lender if it desires and at its option, may apply and credit the Additional Loan Amount hereunder towards the total Capital Investment to be made by Lender, if any, in or to Borrower pursuant to the Capital Call Round,  as defined and as further described in the Note.
		

		
			 
		

		
			5.         No Other Amendments.  Except as specifically amended herein, each of the provisions of the Note shall remain in full force and effect.  This Seventh Amendment does not extinguish the outstanding indebtedness evidenced by the Note prior to the date hereof and is not intended to be a substitution or novation of the original indebtedness under the Note or any of the other terms of the Note, which shall continue in full force and effect, except as specifically amended and restated hereby.  Additionally, this Seventh Amendment does not extinguish or modify Lender’s security interest in the assets of Borrower pursuant to the Security Agreement.
		

		
			 
		

		
			6.         Counterparts; Delivery.  This Seventh Amendment may be executed in any number of counterparts, each of which, when so executed and delivered shall be deemed an original and it shall not be necessary in making proof of this Seventh Amendment to produce or account for more than one such counterpart.  Delivery of an executed counterpart of this Seventh Amendment by facsimile or other electronic imaging means shall be effective as an original.
		

		
			 
		

		
			
		

		
			

		 

		

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			7.         Governing Law.  This Seventh Amendment shall be governed by, interpreted under, and construed and enforced in accordance with the internal laws, and not the laws pertaining to conflicts or choice of laws, of the State of California applicable to agreements made and to be performed wholly within the State of California.
		

		
			 
		

		
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			IN WITNESS WHEREOF, Borrower and Lender have caused this Seventh Amendment to Senior Promissory Note to be executed as of the date first written above.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						BORROWER:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						FRESHREALM, LLC

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Michael R. Lippold

					
					
						 

				
	
					
						Name:

					
					
						Michael Lippold

					
					
						 

				
	
					
						Title:

					
					
						Chief Executive Officer

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						LENDER:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						CALAVO GROWERS, INC.  

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Lecil E. Cole

					
					
						 

				
	
					
						Name:

					
					
						Lecil Cole

					
					
						 

				
	
					
						Title:

					
					
						Chief Executive Officer

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						(Signature Page to Seventh Amendment to Senior Promissory Note)

				

		
			 
		

		 

		

			4cvgw_EX_10-4

		

			 

		

		
			Exhibit 10.4
		

		
			 
		

		
			EIGHTH AMENDMENT TO SENIOR PROMISSORY NOTE
		

		
			 
		

		
			THIS EIGHTH AMENDMENT TO SENIOR PROMISSORY NOTE (“Eighth Amendment” or “Amendment”) is entered into and effective as of November 25, 2019, by and between CALAVO GROWERS, INC., a California corporation (“Lender”), located at 1141-A Cummings Road, Santa Paula, CA 93060, and FRESHREALM, LLC, a Delaware limited liability company (“Borrower”), located at 34 N Palm St Suite 100, Ventura, CA 93001.  Lender and Borrower are sometimes collectively referred to herein as the “Parties.”  Capitalized terms not otherwise defined herein shall have the same meaning as those capitalized terms defined in that certain Sixth Amended and Restated Senior Promissory Note (the “Note”) dated September 18, 2019, by and between the Parties.
		

		
			 
		

		
			RECITALS
		

		
			WHEREAS, Borrower and Lender previously entered into the Note evidencing Lender’s then total outstanding amount loaned to Borrower of Thirty-Three Million Seven Hundred Forty-Two Thousand Thirteen Dollars and Seventy Cents ($33,742,013.70) (the “Loan Amount”, as defined in the Note);
		

		
			 
		

		
			WHEREAS, as of October 8, 2019, the Note was amended pursuant to that certain Seventh Amended and Restated Senior Promissory Note (“Seventh Amendment”), which, among other terms, increased the Loan Amount by One Million One Hundred Thousand Dollars ($1,100,000) to an amended and total current principal Loan Amount of Thirty-Four Million Eight Hundred Forty-Two Thousand Thirteen Dollars and Seventy Cents ($34,842,013.70);  and
		

		
			 
		

		
			WHEREAS, in connection with that certain Convertible Note Offering, described further below, the Parties desire to extend the Maturity Date of the Note, and any amendments thereto, and Lender desires to convert Two Million Seven Hundred Nine Thousand Eight Hundred Eight Dollars ($2,709,808) of the existing Loan Amount and utilize it as its subscription funds pursuant to the Convertible Note Offering on the terms and conditions set forth in this Eighth Amendment.
		

		
			 
		

		
			TERMS AND CONDITIONS
		

		
			NOW, THEREFORE, in consideration of the foregoing recitals, the mutual promises, covenants and agreements contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows:
		

		
			 
		

		
			1.         Maturity Date.  Contingent upon: (i) the acceptance and full execution by both Parties of Lender’s Convertible Promissory Note Subscription Agreement (attached hereto as Exhibit A and referred to as the “Subscription Agreement”); and (ii) the consummation of the First Round Closing (as defined in the attached Subscription Agreement) under the Convertible Note Offering (both referred to herein collectively as the “Closing Conditions”), pursuant to Section 4(a) of the Note, the Maturity Date of the Note is hereby extended from October 31, 2019 to November 1, 2020, and Lender shall have the option, in its sole discretion, to extend such amended Maturity Date of November 1, 2020, for up to three (3) additional and separate
		

		
			
		

		
			

		 

		

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			one (1) year extension periods of November 1, 2021, November 1, 2022, and November 1, 2023, respectively, by Lender electing in writing and giving notice to Borrower to extend the applicable Maturity Date under the Note.  In the event the two Closing Conditions stated above are not consummated in connection with the Convertible Note Offering, then the Maturity Date shall remain October 31, 2019.
		

		
			 
		

		
			2.         Convertible Note Offering and Amended Loan Amount.  Pursuant to Section 2(d) of the Note and the referenced Capital Call Round, Lender has the right, but not the obligation, to use its Eligible Funds as its Capital Investment to be applied towards the Capital Call Round of Borrower.  As part of such Capital Call Round, Borrower is currently undertaking that certain Convertible Promissory Note Offering (“Convertible Note Offering”), pursuant to the attached Subscription Agreement.  Contingent upon consummation of the two Closing Conditions above and  pursuant to the Subscription Agreement, Lender shall utilize and convert Two Million Seven Hundred Nine Thousand Eight Hundred Eight Dollars ($2,709,808)  (“Applied Funds”) from the existing Loan Amount, which includes the Eligible Funds, to be applied towards the Convertible Note Offering as Lender’s Capital Investment and subscription funds in the Convertible Note Offering.  In the event of the utilization of such Applied Funds, subject to the consummation of the Closing Conditions, the Loan Amount, pursuant to the Note and the Seventh Amendment, with interest accrued thereon, shall be reduced from the current amount of Thirty-Five Million Four Hundred Seventy-Three Thousand Two Hundred Sixty-Two Dollars and Sixty-Five Cents ($35,473,262.65) to Thirty-Two Million Seven Hundred Sixty-Three Thousand Four Hundred Fifty-Four Dollars and Sixty-Five Cents ($32,763,454.65) owed by Borrower to Lender under the Note, and all amendments thereto.  In the event the two Closing Conditions stated above are not consummated in connection with the Convertible Note Offering, then the Loan Amount shall remain its current amount due of Thirty-Five Million Four Hundred Seventy-Three Thousand Two Hundred Sixty-Two Dollars and Sixty-Five Cents ($35,473,262.65).
		

		
			 
		

		
			3.         No Other Amendments.  Except as specifically amended herein, each of the provisions of the Note, and all amendments thereto, shall remain in full force and effect.
		

		
			 
		

		
			4.         Counterparts; Delivery.  This Eighth Amendment may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Delivery of an executed counterpart of this Eighth Amendment by facsimile or other electronic imaging means shall be effective as an original.
		

		
			 
		

		
			5.         Governing Law.  This Eighth Amendment shall be governed by, interpreted under, and construed and enforced in accordance with the internal laws, and not the laws pertaining to conflicts or choice of laws, of the State of California applicable to agreements made and to be performed wholly within the State of California.
		

		
			 
		

		
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			IN WITNESS WHEREOF, Borrower and Lender have caused this Eighth Amendment to Senior Promissory Note to be executed as of the date first written above.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						BORROWER:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						FRESHREALM, LLC

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Michael R. Lippold

					
					
						 

				
	
					
						Name:

					
					
						Michael Lippold

					
					
						 

				
	
					
						Title:

					
					
						Chief Executive Officer

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						LENDER:

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						CALAVO GROWERS, INC.

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						By:

					
					
						/s/ Lecil E. Cole

					
					
						 

				
	
					
						Name:

					
					
						Lecil Cole

					
					
						 

				
	
					
						Title:

					
					
						Chief Executive Officer

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						(Signature Page to Eighth Amendment to Senior Promissory Note)

				

		
			 
		

		
			
		

		
			

		 

		

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			EXHIBIT A
		

		
			 
		

		
			CONVERTIBLE PROMISSORY NOTE SUBSCRIPTION AGREEMENT
		

		
			DATED NOVEMBER 25, 2019
		

		
			 
		

		
			(Please See Attached Document)
		

		
			 
		

		 

		

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