Document:

Exhibit
10.46

 

JOINDER TO LOAN
AGREEMENT OF NATURADE, INC.

 

The undersigned is
executing and delivering this Joinder to Loan Agreement (“Joinder Agreement”)
pursuant to that certain Loan Agreement dated as of April 13, 2003 (the
“Loan Agreement”) by and among Naturade, Inc. (“Borrower”) and the lender
parties listed on Schedule I thereto (each a “Lender” and collectively the
“Lender Group”).

 

Any capitalized
terms used but not defined herein shall have the meanings ascribed to them in
the Loan Agreement.

 

By executing and
delivering this Joinder Agreement to Borrower and Lender Group, the undersigned
(“Joining Party”) hereby agrees to become a party to, to be bound by, and to
comply with the provisions of the Loan Agreement in the same manner as if he
were an original signatory to such agreement. 
Joining Party further acknowledges and agrees that he shall be a
“Lender,” as such term is defined in the Loan Agreement, and that all notices
and communications between Joining Party and Borrower and all actions concerning
collateral under the Loan Agreement shall be made by Collateral Agent, as
provided in the Loan Agreement.

 

Joining Party
represents to Corporation and Lender Group that he is an accredited investor as
defined in Rule 501 of Regulation D under the Securities Act of 1933, as
amended.

 

The maximum amount
of advances under the Loan Agreement, to be entered beside the name and address
of Joining Party on Schedule I to the Loan Agreement, is $100,000.

 

Contemporaneously
with the delivery of this Joinder Agreement, the Joining Party shall execute
and deliver to Borrower a Subordination Agreement in the form of Exhibit C to
the Loan Agreement.

 

All notices and other communications provided for under the Loan
Agreement to Joining Party shall be as follows:

 

	
   

  	
  Bill D.
  Stewart

  
	
   

  	
  28551
  Avenida la Mancha

  
	
   

  	
  San Juan
  Capistrano, CA  92675

  
	
   

  	
  Fax:
  949-496-9855

  

 

IN WITNESS
WHEREOF, Joining Party has executed and delivered this Joinder to Loan
Agreement as of the 14 day of April, 2004.

 

	
   

  	
  /s/ Bill D.
  Stewart

  	
   

  
	
   

  	
  Bill D. Stewart

  

 

ACKNOWLEDGED:

NATURADE, INC.

 

	
  By:
  /s/ Stephen M. Kasprisin

  	
   

  
	
  Name:
  Stephen M. Kasprisin

  
	
  Title: Chief
  Financial Officer

  
	
  Date: April
  14, 2004Exhibit 10.47

 

Subordination Agreement

(Bill D. Stewart)

 

This Agreement,
dated as of April 14, 2004, is made by Bill D. Stewart (“Subordinated
Creditor”), for the benefit of Wells Fargo Business Credit, Inc., a Minnesota
corporation (“Lender”).

 

Naturade, Inc., a
Delaware corporation (“Borrower”), is now or hereafter may be indebted to
Lender on account of loans or the other extensions of credit or financial
accommodations from Lender to Borrower, or to any other person under the
guaranty or endorsement of Borrower.

 

The Subordinated
Creditor has made or may make loans or grant other financial accommodations to
Borrower.

 

As a condition to
making any loan or extension of credit to Borrower, Lender has required that
Subordinated Creditor subordinate the payment of Subordinated Creditor’s loans
and other financial accommodations to the payment of any and all indebtedness
of Borrower to Lender.  Assisting
Borrower in obtaining credit accommodations from Lender and subordinating its
interests pursuant to the terms of this Agreement are in Subordinated
Creditor’s best interest.

 

ACCORDINGLY, in
consideration of the loans and other financial accommodations that have been
made and may hereafter be made by Lender for the benefit of Borrower, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Subordinated Creditor hereby agrees as follows:

 

1. Definitions.  As used herein, the following terms have the
meanings set forth below:

 

“Availability”
has the meaning provided in the Credit and Security Agreement.

 

“Borrower
Default” means Borrower’s failure to repay Lender Indebtedness, when due,
or Borrower’s failure to perform any material covenant contained in any
agreement or instrument evidencing, governing, or issued in connection with
Lender Indebtedness, including, but not limited to, the Credit and Security
Agreement.

 

“Collateral
Agent” has the meaning set forth in the Loan Agreement.

 

“Credit and
Security Agreement” means the Credit and Security Agreement dated as of
January 27, 2000 by and between Borrower and Lender as the same may hereafter
be amended, supplemented or restated from time to time.

 

“Lender
Indebtedness” means each and every debt, liability and obligation of every
type and description which Borrower may now or at any time hereafter owe to
Lender, whether such debt, liability or obligation now exists or is hereafter
created or incurred, and whether it is or may be direct or indirect, due or to
become due, absolute or contingent, primary or secondary, liquidated or
unliquidated, or joint, several or joint and several, all interest thereon,

 

 

all renewals, extensions and
modifications thereof and any notes issued in whole or partial substitution
therefor.

 

“Loan Agreement”
means that certain Loan Agreement between Borrower, Subordinated Creditor and
certain other parties, dated as of April 14, 2003.

 

“Subordinated
Creditor Group” means, collectively, the Lender Group as defined in the
Loan Agreement.

 

“Subordinated
Indebtedness” means all obligations arising under the Subordinated Note and
each and every other debt, liability and obligation of every type and
description which Borrower may now or at any time hereafter owe to Subordinated
Creditor, whether such debt, liability or obligation now exists or is hereafter
created or incurred, and whether it is or may be direct or indirect, due or to
become due, absolute or contingent, primary or secondary, liquidated or
unliquidated, or joint, several or joint and several.

 

“Subordinated
Note” means, collectively Borrower’s Secured Promissory Note, dated as
of April 14, 2004, payable to the order of Subordinated Creditor in the
original principal amount of up to $100,000, together with all renewals,
extensions and modifications thereof and any note or notes issued in
substitution therefor.

 

1. Subordination.  The payment of all of the Subordinated
Indebtedness is hereby expressly subordinated to the extent and in the manner
hereinafter set forth to the payment in full of Lender Indebtedness; and
regardless of any priority otherwise available to Subordinated Creditor by law
or by agreement, Lender shall hold a first security interest in all collateral
securing payment of Lender Indebtedness (the “Collateral”), and any security
interest claimed therein (including any proceeds thereof) by Subordinated
Creditor shall be and remain fully subordinate for all purposes to the security
interest of Lender therein for all purposes whatsoever until payment in full of
the Lender Indebtedness.

 

2. Payments.

 

(a) Until all of the
Lender Indebtedness has been paid in full, Subordinated Creditor shall not,
without Lender’s prior written consent, demand, receive or accept any payment
(whether of principal, interest or otherwise) from Borrower in respect of the
Subordinated Indebtedness, or exercise any right of or permit any setoff in
respect of the Subordinated Indebtedness; provided, however, that so long as
there is no Borrower Default, Subordinated Creditor shall be entitled to
receive all interest, when due, on the Subordinated Indebtedness.

 

(b) In the event
that a Borrower Default has occurred, which Borrower Default has been cured and
remains cured for a period of ninety (90) consecutive days and Availability is
equal to an amount greater than two hundred fifty thousand dollars ($250,000),
then Subordinated Creditor shall be entitled to receive all interest payments
due under any document evidencing Subordinated Indebtedness, including past due
interest, on the next regularly scheduled interest payment date.

 

3. Receipt
of Prohibited Payments.  If
Subordinated Creditor receives any payment on the Subordinated Indebtedness
that Subordinated Creditor is not entitled to receive under the provisions of
this Agreement, Subordinated Creditor will hold the amount so received in trust
for

 

 

Lender and will forthwith turn
over such payment to Lender in the form received (except for the endorsement of
Subordinated Creditor where necessary) for application to then-existing Lender
Indebtedness (whether or not due), in such manner of application as Lender may
deem appropriate.  If Subordinated
Creditor exercises any right of setoff which Subordinated Creditor is not
permitted to exercise under the provisions of this Agreement, Subordinated
Creditor will promptly pay over to Lender, in immediately available funds, an
amount equal to the amount of the claims or obligations offset.  If Subordinated Creditor fails to make any
endorsement required under this Agreement, Lender, or any of its officers or employees
or agents on behalf of Lender, is hereby irrevocably appointed as the
attorney-in-fact (which appointment is coupled with an interest) for
Subordinated Creditor to make such endorsement in Subordinated Creditor’s name.

 

4. Action
on Subordinated Debt.  Collateral
Agent, on behalf of Subordinated Creditor Group, will not commence any action
or proceeding against Borrower to recover all or any part of the Subordinated
Indebtedness, or join with any creditor (unless Lender shall so join) in
bringing any proceeding against Borrower under any bankruptcy, reorganization,
readjustment of debt, arrangement of debt receivership, liquidation or
insolvency law or statute of the federal or any state government, or take
possession of, sell, or dispose of any Collateral, or exercise or enforce any
right or remedy available to Subordinated Creditor with respect to any such
Collateral, unless and until all Lender Indebtedness has been paid in
full.  Subordinated Creditor shall not
commence any such action other than through Collateral Agent.

 

5. Action Concerning Collateral.

 

(a) Notwithstanding
any security interest now held or hereafter acquired by Subordinated Creditor,
Lender may take possession of, sell, dispose of, and otherwise deal with all or
any part of the Collateral, and may enforce any right or remedy available to it
with respect to the Collateral, all without notice to or consent of
Subordinated Creditor except as specifically required by applicable law.

 

(b) In addition, and
without limiting the generality of the foregoing, if a Borrower Default has
occurred and is continuing and Borrower intends to sell any Collateral to an
unrelated third party outside the ordinary course of business, Collateral Agent
shall on Subordinated Creditor’s behalf, upon Lender’s request, execute and
deliver to such purchaser such instruments as may reasonably be necessary to
terminate and release any security interest or lien Subordinated Creditor has
in the Collateral to be sold.

 

(c) Lender shall
have no duty to preserve, protect, care for, insure, take possession of,
collect, dispose of, or otherwise realize upon any of the Collateral, and in no
event shall Lender be deemed Subordinated Creditor’s agent with respect to the
Collateral.  All proceeds received by
Lender with respect to any Collateral may be applied, first, to pay or
reimburse Lender for all costs and expenses (including reasonable attorneys’
fees) incurred by Lender in connection with the collection of such proceeds,
and, second, to any indebtedness secured by Lender’s security interest in that
Collateral in arty order that it may choose.

 

6. Bankruptcy
and Insolvency.  In the event of any
receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization or arrangement with creditors, whether or not pursuant to
bankruptcy law, the sale of all or substantially all of the assets of Borrower,
dissolution, liquidation or any other marshalling of the assets or liabilities
of Borrower,

 

 

Collateral Agent may, on behalf
of Subordinated Creditor, file all claims, proofs of claim or other instruments
of similar character necessary to enforce the obligations of Borrower in
respect of the Subordinated Indebtedness and will hold in trust for Lender and
promptly pay over to Lender in the form received (except for the endorsement of
Subordinated Creditor where necessary) for application to the then-existing
Lender Indebtedness, any and all moneys, dividends or other assets received in
any such proceedings on account of the Subordinated Indebtedness, unless and
until all Lender Indebtedness has been paid in full. If Collateral Agent, on
behalf of Subordinated Creditor, fails to take any such action within 30 days
of being entitled to do so, Lender, as attorney-in-fact for Subordinated
Creditor, may take such action on Subordinated Creditor’s behalf. The
Subordinated Creditor hereby irrevocably appoints Lender, or any of its
officers or employees on behalf of Lender, as the attorney-in-fact for
Subordinated Creditor (which appointment is coupled with an interest) with the
power but not the duty to demand, sue for, collect and receive any and all such
moneys, dividends or other assets received on account of the Subordinated
Indebtedness and give acquittance therefor and to file any claim, proof of
claim or other instrument of similar character regarding the Subordinated
Indebtedness, to vote claims comprising Subordinated Indebtedness to accept or
reject any plan of partial or complete liquidation, reorganization,
arrangement, composition or extension, and to take such other action in
Lender’s own name or in the name of Subordinated Creditor as Lender may deem
necessary or advisable for the enforcement of the agreements contained herein;
and Subordinated Creditor will execute and deliver to Lender such other and
further powers-of-attorney or instruments as Lender may request in order to
accomplish the foregoing.

 

7. Restrictive Legend; Transfer of Subordinated Indebtedness.

 

(a) The Subordinated
Creditor will cause the Subordinated Note and all other notes, bonds,
debentures or other instruments evidencing the Subordinated Indebtedness or any
part thereof to contain a specific statement thereon to the effect that the
indebtedness thereby evidenced is subject to the provisions of this Agreement,
and Subordinated Creditor will mark its books conspicuously to evidence the
subordination effected hereby. Attached hereto is a true and correct copy of
the Subordinated Note bearing such legend. 
At the request of Lender, Subordinated Creditor shall deposit with
Lender the Subordinated Note and all of the other notes, bonds, debentures or
other instruments evidencing the Subordinated Indebtedness, which notes, bonds,
debentures or other instruments may be held by Lender so long as any Lender
Indebtedness remains outstanding.  The
Subordinated Creditor is the lawful holder of the Subordinated Note and has not
transferred any interest therein to any other person.  Without the prior written consent of Lender, which consent shall
not be unreasonably withheld, Subordinated Creditor will not assign, transfer
or pledge to any other person any of the Subordinated Indebtedness or agree to
a discharge or forgiveness of the same so long as there remains outstanding any
of Lender Indebtedness.

 

(b) Notwithstanding
any other provision of this Agreement, Subordinated Creditor may, without the
consent of Lender: (i) change its form of business entity; and
(ii) assign, transfer or pledge the Subordinated Indebtedness to one of
its affiliates, provided assignee assumes all obligations under this
Subornation Agreement.

 

8. Continuing
Effect.  This Agreement shall
constitute a continuing agreement of subordination, and Lender may, without
notice to or consent by Subordinated Creditor, modify any term of Lender
Indebtedness in reliance upon this Agreement. 
Without limiting the

 

 

generality of the foregoing,
Lender may, at any time and from time to time, either before or after receipt
of any such notice of revocation, without the consent of or notice to
Subordinated Creditor and without incurring responsibility to Subordinated Creditor
or impairing or releasing any of Lender’s rights or any of Subordinated
Creditor’s obligations hereunder:

 

(a) change the
interest rate or change the amount of payment or extend the time for payment or
renew or otherwise alter the terms of any Lender Indebtedness or any instrument
evidencing the same in any manner;

 

(b) sell, exchange,
release or otherwise deal with any property at any time securing payment of
Lender Indebtedness or any part thereof;

 

(c) release anyone
liable in any manner for the payment or collection of the Lender Indebtedness
or any part thereof;

(d) exercise or
refrain from exercising any right against Borrower or any other person
(including Subordinated Creditor); and

 

(e) apply any sums
received by Lender, by whomsoever paid and however realized, to Lender
Indebtedness in such manner as Lender shall deem appropriate.

 

9. No
Commitment.  None of the provisions
of this Agreement shall be deemed or construed to constitute or imply any
commitment or obligation on the part of Lender to make any future loans or
other extensions of credit or financial accommodations to Borrower.

 

10. Notice.
All notices and other communications hereunder shall be in writing and shall be
(i) personally delivered, (ii) transmitted by registered mail, postage prepaid,
or (iii) transmitted by facsimile, in each case addressed to the party to whom
notice is being given at its address as set forth below:

 

	
  If to
  Lender:

  
	
   

  
	
  Wells Fargo
  Business Credit, Inc.

  
	
  245 South
  Los Robles Avenue, Suite 600

  
	
  Pasadena,
  California 91101

  
	
  Attention:

  	
   

  	
  Account
  Executive

  
	
  Facsimile:

  	
   

  	
  (626)
  844-9063

  
	
   

  	
   

  	
   

  
	
  If to
  Subordinated Creditor:

  
	
   

  
	
  Bill D.
  Stewart

  
	
  28551
  Avenida la Mancha

  
	
  San Juan
  Capistrano, CA  92675

  
	
  Facsimile:

  	
   

  	
  (949)-496-9855

  
				

 

or at such other address as may
hereafter be designated in writing by that party. All such notices or other
communications shall be deemed to have been given on (i) the date received
if delivered

 

 

personally, (ii) the date
of posting if delivered by mail, or (iii) the date of transmission if
delivered by facsimile.

 

11. Conflict
in Agreements. If the subordination provisions of any instrument evidencing
Subordinated Indebtedness conflict with the terms of this Agreement, the terms
of this Agreement shall govern the relationship between Lender and Subordinated
Creditor.

 

12. No
Waiver.  No waiver shall be deemed
to be made by Lender of any of its rights hereunder unless the same shall be in
writing signed on behalf of Lender, and each such waiver, if any, shall be a
waiver only with respect to the specific matter or matters to which the waiver
relates and shall in no way impair the rights of Lender or the obligations of
Subordinated Creditor to Lender in any other respect at any time.

 

13. Binding
Effect: Acceptance.  This Agreement
shall be binding upon Subordinated Creditor and Subordinated Creditor’s heirs,
legal representatives, successors and assigns and shall inure to the benefit of
Lender and its participants, successors and assigns irrespective of whether
this or any similar agreement is executed by any other Subordinated Creditor of
Borrower. Notice of acceptance by Lender of this Agreement or of reliance by
Lender upon this Agreement is hereby waived by Subordinated Creditor.

 

14. Miscellaneous.  The paragraph headings herein are included
for convenience of reference only and shall not constitute a part of this
Agreement for any other purpose.  This
Agreement may be executed in any number of counterparts, each of which shall be
an original, but all of which together shall constitute one instrument.  This Agreement shall be governed by the laws
(other than conflict laws) of the State of California.  Each party consents to the personal
jurisdiction of the state and federal courts located in the State of California
in connection with any controversy related to this Agreement, waives any
argument that venue in any such forum is not convenient, and agrees that any
litigation initiated by any of them in connection with this Agreement shall be
venued in either the Superior Court of California, Los Angeles County,
California, or the United States District Court, Central District,
Los Angeles Division.  THE PARTIES
WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR
PERTAINING TO THIS ACKNOWLEDGMENT.

 

The next page is the
signature page.

 

 

IN WITNESS
WHEREOF, Subordinated Creditor has executed this Subordination Agreement as of
the date and year first above-written.

 

	
   

  	
  Bill D. Stewart

  
	
   

  	
   

  
	
   

  	
  /s/ Bill D. Stewart

  	
   

  

 

Acknowledgment by
Borrower

 

The undersigned,
being the Borrower referred to in the foregoing Subordination Agreement, hereby
(i) acknowledges receipt of a copy thereof, (ii) agrees to all of the
terms and provisions thereof, (iii) agrees to and with Lender that it
shall make no payment on the Subordinated Indebtedness that Subordinated
Creditor would not be entitled to receive under the provisions of the
Agreement, (iv) agrees that any such payment will constitute a default
under the Lender Indebtedness, and (v) agrees to mark its books
conspicuously to evidence the subordination of the Subordinated Indebtedness
effected hereby.

 

	
   

  	
  NATURADE,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:/s/
  Stephen M. Kasprisin

  	
   

  
	
   

  	
  Name:
  Stephen M. Kasprisin

  
	
   

  	
  Title: Chief
  Financial Officer

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