Document:

Document

EXHIBIT 10.2
                              

MODIFICATION OF PROMISSORY NOTE

Name of Borrower: CNL STRATEGIC CAPITAL B, INC.

Address of Borrower: 450 S ORANGE AVENUE STE 1400 ORLANDO, FL 32801

Name of Co-Borrower(s) if applicable: _____
(Collectively hereafter “Borrower”)

Description of Note to be modified (the “Note”):
Note Number: 60000006812
Note Date: 07/15/2020
Original Principal Amount: $20,000,000.00

THIS MODIFICATION OF PROMISSORY NOTE (this “Modification”) is made as of this 8TH day of JULY, 2021, by and between Borrower, and UNITED COMMUNITY BANK dba SEASIDE BANK AND TRUST, a Georgia banking corporation (“Lender”).

Statement of Facts

Borrower is indebted to Lender under the Note (as amended, restated, supplemented or otherwise modified from time to time, the “Note”), and Borrower and Lender desire to modify the Note in certain respects in accordance with the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the premises, the covenants and agreements contained herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Borrower and Lender do hereby agree as follows:

Statement of Terms

1.Amendment(s) of Note. Subject to the fulfillment of the conditions precedent to the effectiveness of this Modification which are set forth below, the Note shall be amended from and after the date of his Modification as follows (check each applicable box): 

☒  The maturity date is extended from 07/14/2021 to 10/14/2021.
☒ Extend existing payment schedule through maturity with next payment effective 07/14/2021.
☐ Bill total due at maturity.

☐  The interest rate is changed from a fixed rate of ____% to a fixed rate of ____% effective _____.

☐  The interest rate is changed from a variable rate of ____% to a variable rate of ____% effective _____.

☐  The index is changed from ____ to ____ effective ____.
                            									
			/s/ TJT                
	Revised 3/1/2011    		    Borrower Initials

☐  The rate change frequency is changed from ____ to ____ effective ____.  ie: weekly, monthly, quarterly, semi-annual or annual.
☐  The margin is changed from ____ to ____ effective ____.
☐  The rate floor is changed from ____ to ____ effective ____.
☐  The rate ceiling is changed from ____ to ____ effective ____.

☐  The payment amount is changed from ____ to ____ for each ____ effective _____. If the interest rate or the maturity date are not modified, this may result in a larger balance due at maturity.
☐  Continue existing payment schedule effective____.
☐  Bill new payment amount through maturity.

☐  The payment date is changed from ____ to ____. All subsequent payments are due on the same day of each ____ after that. If the payment amount is not modified, this may result in a larger balance due at maturity. 

☐  Other:

General Terms:
In consideration of Bank accepting the modifications agreed to above, Borrower agrees to pay Bank fee(s) of $____ in connection with such modification. Borrower authorizes Bank to: 
☐ Debit Deposit Account #_____ for the amount of such fees; or
☐ Customer agrees to pay fees in cash. 

2.No Other Amendments. Except for the amendment(s) expressly set forth in Section 1, above, the Note shall remain unchanged and in full force and effect. Nothing in this Modification is intended, or shall be construed, to constitute a novation or an accord or satisfaction of the Note or any indebtedness evidenced thereby or to modify, affect or impair the perfection or continuity of Lender’s security interests, security titles or other liens in, to or on any real or personal property collateral for this Note. 

3.Reaffirmation and Waiver. Borrower confirms, reaffirms and ratifies his/her respective obligations contained in the Note and the Loan Documents and represents that he/she has no claims, defenses, counterclaims or rights of setoff or recoupment against Lender under the Note or the Loan Documents or otherwise and hereby waive any such claims, defenses, counterclaims or rights of setoff or recoupment. 

4.Conditions Precedent to Effectiveness of this Modification. The effectiveness of this Modification and the amendment(s) provided in Section 1, above, are subject to the fulfillment of the following conditions precedent: (a) Lender shall have received one or more counterparts of this Modification duly executed and delivered by the Borrower; and (b) if and to the extent required by Lender, any and all guarantors of the Note shall have consented to the execution, delivery and performance of this Obligation and all of the transactions contemplated hereby by signing one or more counterparts of this Modification in the appropriate space indicated below and returning the same to Lender. 

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	US2008 585597.3		
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	Revised 3/1/2011		Borrower Initials

5.Counterparts. This Modification may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which when taken together shall constitute one and the same instrument. 

6.Governing Law. This Modification shall be governed by, and construed in accordance with, the internal laws of the State of Florida applicable to contracts made and performed in such state. 

7.Entire Agreement. The Note as amended from time to time and by this Modification embodies the entire agreement between the parties hereto relating to the subject matter hereof and supersedes all prior agreements, representations and understandings, if any, related to the subject matter hereof. 

8.Release of Claims and Covenant Not to Sue.

(a)  Each of Borrower and the undersigned guarantor(s) (collectively, the “Loan Parties,” and each, a “Loan Party”), on behalf of itself and its successors, assigns and other legal representatives, hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges the Lender and its successors and assigns, and its present and former shareholders, affiliates, subsidiaries, divisions, predecessors, directors, officers, attorneys, employees, agents and other representatives (the Lender and all such other Persons being hereinafter referred to collectively as the “Releasees,” and individually as a “Releasee”), of and from any and all demands, actions, causes of action, suits, controversies, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set off, demands and liabilities whatsoever (individually, a “Claim” and collectively, “Claims”) of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, which such Loan Party or any of its successors, assigns or other legal representatives may now or hereafter own, hold, have or claim to have against the Releasees or any of them for, upon or by reason of any circumstance, action, cause or thing whatsoever which arises at any time on or prior to the date that this Modification is executed by all parties, in each case solely for or on account of or relating to the Note, any of the other loan, collateral, guaranty or other agreements, instruments or documents relating thereto or the transactions thereunder or related thereto. 

(b)  Each Loan Party, on behalf of itself and its successors, assigns and other legal representatives, hereby absolutely, unconditionally and irrevocably covenants and agrees with and in favor of each Releasee that it will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Releasee on the basis of any Claim released, remised and discharged by the Borrower pursuant to Section 7(a) above. If any Loan Party or any of its successors, assigns or other legal representatives violates the foregoing covenant, such Loan Party, for itself and its successors, assigns and legal representatives, agrees to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all reasonable attorneys’ fees and costs incurred by any affected Releasee as a result of such violation. 

[Remainder of page intentionally left blank]

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	US2008 585597.3		
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	Revised 3/1/2011		Borrower Initials

IN WITNESS WHEREOF, the parties hereto have caused this Modification to be duly executed under seal and delivered as of the day and year specified at the beginning hereof. 

BORROWER:

CNL STRATEGIC CAPITAL B, INC., A DELAWARE CORPORATION

By; /s/ Tammy J. Tipton                                  
Name: TAMMY J. TIPTON
Title: CHIEF FINANCIAL OFFICER AND TREASURER

LENDER:

SEASIDE BANK AND TRUST

By; /s/ Ed Timberlake                                     
Name: ED TIMBERLAKE
Title: CLIENT ADVISOR

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	US2008 585597.3		
			/s/ TJT
	Revised 3/1/2011		Borrower Initials

Each of the undersigned guarantors does hereby consent to the execution, delivery and performance of the within and foregoing Modification of Promissory Note.

IN WITNESS WHEREOF, each of the undersigned guarantors has executed this Consent under seal as of the day and year first above set forth. 

GUARANTORS:

CNL STATEGIC CAPITAL LLC, A DELAWARE LIMITED LIABILITY COMPANY

By; /s/ Tammy J. Tipton                                  
Name: TAMMY J. TIPTON
ITS: CHIEF FINANCIAL OFFICER AND TREASURER

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	US2008 585597.3		
			/s/ TJT
	Revised 3/1/2011		Borrower InitialsExhibit 10.1

 

 

SETTLEMENT AGREEMENT REGARDING CONVERTIBLE
DEBENTURE DATED DECEMBER 15, 2019

 

THIS SETTLEMENT AGREEMENT
REGARDING CONVERTIBLE DEBENTURE DATED DECEMBER 15, 2019
(this "Agreement") is
entered into as of June 1, 2021 by and among REGO PAYMENT
ARCHITECTURES, INC., a Delaware corporation having its
principal executive offices at 409 Boot Road, Downingtown, PA 19335 ("Rego"), and NEHEMIAH PARTNERS I, LP,
a limited partnership organized in the
State of New York and having
its principal place of business located in New York, New
York ("Nehemiah"). Rego and Nehemiah are
referred to individually as
a "Party" and collectively as the "Parties".

 

WHEREAS, Rego executed a Convertible
Debenture dated December 15, 2019
for the benefit of Nehemiah in the
original principal amount
of $500,000 (the "2019
Debenture").

 

WHEREAS, Rego and Nehemiah
intend to cancel the
2019 Debenture
and confirm it is of no further force
or effect and to confirm, settle and release
certain other matters between them,
all on the terms and conditions set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the
covenants and agreements contained herein,
and for other good and valuable consideration, the
receipt of which is hereby
acknowledged, intending
to be legally bound
hereby, the Parties agree as follows:

 

1.          Recitals. The forgoing Recitals are expressly
incorporated as part of this Agreement, and
the Parties confirm and represent to one another that said Recitals
are true and correct to the best of their knowledge,
information, and belief.

 

2.          2019
Debenture. Rego and Nehemiah agree and acknowledge that the
2019 Debenture is void ab initio
and of no force or effect.
Each of Rego and Nehemiah
hereby releases and forever discharges
the other Party from any and
all actions, causes of
action, claims,
damages, judgments,
and demands whatsoever, that each
Party has or may have against the other Party of or relating to
the 2019 Debenture.

 

3.          Issuance of Secured
Convertible
Note convertible into Series C Cumulative
Convertible Preferred Stock. Simultaneously with the execution
of this Agreement, Rego and
Nehemiah will execute that certain
Securities Purchase Agreement between Rego and Nehemiah in
the original principal amount of $517,000 on the
terms and conditions set forth
therein and deliver such
Securities Purchase Agreement to Rego,
along with the Accredited Investor Questionnaire. Nehemiah
acknowledges that it has
received and reviewed the Securities
Purchase Agreement, together with the Confidential Private Offering
Memorandum dated July 28,
2016 and all exhibits
and schedules
thereto. For the avoidance of doubt, the Securities Purchase Agreement is
an exhibit to the Confidential
Private Offering Memorandum.

 

4.          Common Stock Warrant Grant. On or about December 15, 2019,
Rego issued to Nehemiah
350,000 of Rego's common
stock warrant with cashless
exercise price of $0.90 per warrant. Rego and Nehemiah
affirm and acknowledge that
this common stock warrant
issuance has taken place.

 

    	 	1	 

    	 

    

 

5.          Nehemiah's Option to Increase Financing.

 

(a)          Rego
hereby
grants to
Nehemiah an
option (the
" Option")
to purchase up
to $8,000,000 in Rego' s Series
B Preferred Stock (the "Option Stock")
upon the terms and conditions
set forth below. The rights
and obligations of Nehemiah
relating to the Option
Stock shall be described
in that certain
Offering Memorandum for Class B Preferred Stock
to be provided to Nehemiah
and the Subscription Agreement relating
thereto to be
executed upon the exercise
of an option and
the payment of each
purchase
amount. In the event Nehemiah
fails to make any of the
required minimum purchases by
the stated date,
the Option shall
automatically terminate and Nehemiah
shall have no
further rights to
purchase additional Option
Stock under the
Option. The termination of the
Option shall
not affect the ownership of
any Option Stock
Nehemiah purchased prior to
the termination of the Option.

(i)        Unless
the Option has previously
terminated,
in order to prevent the
Option from terminating,
Nehemiah must
purchase at least
$200,000 in
Option Stock, with receipt
of funds by Rego occurring
on or before July
20, 2021.

(ii)        Unless
the Option has previously
terminated,
in order
to prevent
the Option from terminating,
in addition to the previous purchases
required under this Section
5(a), Nehemiah must
purchase at least
$250,000 in additional Option
Stock, with receipt
of funds by Rego occurring on or before
August 23, 2021.

(iii)       Unless
the Option has
previously
terminated,
in order to prevent
the Option from terminating,
in addition to the previous
purchases required
under this
Section 5(a), Nehemiah must
purchase at least
$300,000
in additional
Option Stock, with receipt
of funds by Rego occurring
on or before October 4,
2021.

(iv)       Unless
the Option has
previously terminated, in
order to prevent
the Option from terminating, in
addition
to the previous purchases required
under this Section
5(a), Nehemiah
must purchase
at least $350,000
in additional Option Stock, with
receipt of funds by Rego occurring
on or before
November 5,
2021.

(v)       Unless
the Option has
previously
terminated, in
order to prevent
the Option from terminating,
in addition to the
previous purchases required
under this Section 5(a), Nehemiah
must purchase
at least
$400,000 in additional Option
Stock, with receipt of funds by Rego occurring on or
before December 6,
2021.

(vi)      Unless the Option
has previously terminated, in order to prevent the Option
from terminating, in addition to the
previous purchases required under this Section 5(a), Nehemiah
must purchase at least $500,000
in additional Option
Stock, with receipt of funds by Rego occurring on or
before January
3, 2022.

(vii)       Unless
the Option
has previously terminated,
in order to
prevent the Option from terminating,
in addition
to the previous purchases required under this
Section 5(a), on or
before February 7,
2022, and continuing
on or before the first Monday
or every month until a
total of $8,000,000
in Option Stock has
been purchased
under this Section 5(a), Nehemiah
must purchase at
least $500,000 in additional
Option Stock,
with receipt
of funds by Rego occurring
on or before
each such purchase
date.

(b)       In
addition to the
termination of the Option described elsewhere in this Agreement, the
Option will automatically terminate
and be of no
further force
or effect ten
(10) days after the occurrence
of any of the events described
below provided that such event
occurs after July 20,
2022. Nothing in
this Agreement will prevent Nehemiah from purchasing additional
Option Stock during the ten-day period after any
such event to bring the
total purchased under Section 5(a) and this Section 5(b)
up to $8,000,000 in aggregate.

 

    	 	2	 

    	 

    

 

(i)        Upon
the Company executing an engagement
letter with a "major bracket"
investment banking firm.

(ii)       Upon
the Company entering into a definitive
agreement with the pending Norway
white label deal.

(iii)      Upon
the MazoolaPaySM technology
becoming integrated and operational on one of
any of the following websites: (1)
Demandware; (2) Magento; (3)
WooCommerce; (4) Shopify; (5)
BigCommerce; (6) Wix;
(7) Squarespace; and (8) Square
Online.

(iv)      Upon
the Company entering into a definitive agreement to
white label the MazoolaPaySM
technology with a banking institution with assets in excess of
$1.5 billion, excluding Origin Bank.

 

6.         Successors. This Agreement shall be
binding upon the Parties
and each of their agents, administrators, representatives,
assigns, subsidiaries,
divisions, successors,
predecessors, affiliates,
directors, officers, employees, partners, shareholders,
and investors.
This Agreement may not
be terminated or modified without
the prior written consent of
each Party.

 

7.         Governing Law; Dispute Resolution. This Debenture shall
be governed by the laws of
the State of Delaware without
regard to its conflict of
laws principles.
Each party hereby irrevocably submits
to the exclusive jurisdiction of
the state and federal
courts sitting in the City
of Wilmington, Delaware
for the adjudication of any
dispute hereunder or in connection herewith or with
any transaction contemplated hereby
or discussed
herein, and hereby irrevocably
waives, and agrees not to assert
in any suit, action
or proceeding, any claim
that it is not personally subject to
the jurisdiction of any such court, that such suit,
action or proceeding is brought
in an inconvenient forum or that
the venue of 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 to such party at
the address for such notices
to it under this Debenture 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. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST,
A JURY TRIAL FOR THE ADJUDICATION OF
ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR
ARISING OUT OF THIS DEBENTURE
OR ANY TRANSACTION CONTEMPLATED HEREBY.

 

8.          Entire
Agreement. This Agreement
comprises the entire agreement between the Parties with
respect to the matters referred to herein.

 

9.          Counterparts. This Agreement
may be executed in two or more
identical counterparts, both of which constitute one and the same
Agreement. Facsimile or other electronically transmitted signatures
to this Agreement shall be
deemed to have the same force
and effect as original signatures.

 

    	 	3	 

    	 

    

 

 

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