Document:

oldplankwintrusthalorevo

REVOLVING NOTE $13,500,000.00 Dated as of: October 24, 2022 Chicago, Illinois FOR VALUE RECEIVED, the undersigned, HALO, PURELY FOR PETS, INC., a Delaware  corporation (“Borrower”), promises to pay to the order of OLD PLANK TRAIL COMMUNITY  BANK, N.A., a national banking association (“Lender”), on or before the Revolving Loan  Termination Date, the principal sum of Thirteen Million Five Hundred Thousand and no/100  Dollars ($13,500,000.00), or such lesser principal sum as Lender may have advanced to Borrower  pursuant to Section 2.1(A) of that certain Loan and Security Agreement dated as of January 6,  2021, as amended by that certain First Amendment to Loan and Security Agreement dated as of  August 13, 2021,  that certain Second Amendment to Loan and Security Agreement dated as of  March 25, 2022, and that certain Third Amendment to Loan and Security Agreement of even date  herewith (the “Third Amendment”), each by and between Lender and Borrower (as further  amended, renewed or restated from time to time, collectively, the “Loan Agreement”; capitalized  terms used but not otherwise defined herein are used herein as defined in the Loan Agreement),  together with interest thereon from the date hereof at the rate set forth in Section 2.3(A)(1) of the  Loan Agreement.  The principal amount of and interest on this Revolving Note (this “Note”) shall  be payable in the manner and at the times set forth in the Loan Agreement and below.  Interest  shall be calculated on the basis of a 360-day year for the actual number of days in which any of  the Liabilities remain outstanding and shall be paid as set forth in the Loan Agreement.  Upon the  occurrence of the Revolving Loan Termination Date or an Event of Default, whichever is first to  occur, interest shall accrue upon the outstanding Liabilities at the Default Rate.    Upon the occurrence and during the continuance of an Event of Default, Borrower waives  the right to direct the application of any and all payments at any time or times hereafter received  by Lender on account of the Liabilities, and Borrower agrees that Lender shall have the continuing  exclusive right to apply and reapply any and all payments in such manner and in such order as  Lender may deem advisable, including, but not limited to, the payment of any costs, fees and  reasonable expenses due and owing by Borrower to Lender.  The full and timely payment of the Liabilities and Borrower’s full and timely performance  of the Covenants are secured by security interests, liens and encumbrances granted by Borrower  to Lender pursuant to the Loan Agreement and the other agreements, instruments, documents and  guaranties as heretofore, contemporaneously herewith or may hereafter be executed and delivered  to Lender by Borrower and any other persons and entities, from time to time, as the case may be,  evidencing, securing or guarantying the Liabilities and the Covenants including, but not limited  to, the Guaranty, the Stock Pledge Agreement, the Deposit Account Pledge Agreement, the  Intellectual Property Security Agreement and the other Loan Documents (collectively the  “Collateral Documents”).   If an Event of Default occurs and is continuing, at the option of Lender or the legal holder  hereof, as the case may be, and without demand therefor or notice thereof from Lender to Borrower  or any other person or entity, all of the Liabilities shall be immediately due and payable and shall  be collectible immediately or at any time after such Event of Default.  The acceptance by Lender  

 

- 2 -  of any partial payment of the Liabilities after an Event of Default will not establish a custom, or  waive any of Lender’s rights or remedies pursuant to this Note, the Collateral Documents, at law,  in equity or otherwise.  Borrower and every endorser of this Note hereby each waive presentment,  demand and protest, and notice of presentment, demand, protest, default, non-payment, maturity,  release, compromise, amendment, modification, settlement, extension or renewal of the Liabilities  or this Note, the Covenants, the Collateral Documents or any collateral or security for the  Liabilities or the Covenants.  Any forbearance by Lender or the legal holder hereof, as the case may be, in exercising  any right or remedy pursuant to this Note or the Collateral Documents, at law, in equity or  otherwise, shall not be or be deemed a waiver of nor shall preclude the subsequent exercise of any  such right or remedy.  If at any time or times before or after an Event of Default, Lender:  (a) employs an  accountant, consultant, counsel or any other representative or advisor (i) with respect to the  Liabilities, this Note, the Collateral Documents or otherwise, (ii) to represent or consult with  Lender in connection with any litigation, contest, dispute, suit or proceeding, or to commence,  defend, intervene or take any other action in or with respect to any litigation, contest, dispute, suit  or proceeding, whether initiated by Lender, Borrower or any other person or entity, in any way or  respect arising from, relating to or in connection with the Liabilities, this Note, the Covenants, the  Collateral Documents or any collateral or security for the Liabilities or the Covenants, or (iii) to  enforce any of Lender’s rights or remedies; (b) takes any action or initiates any proceeding to  protect, collect, sell, liquidate or otherwise dispose of any of the collateral or security for the  Liabilities, the Covenants or the Collateral Documents; or (c) attempts to or enforces any of  Lender’s rights or remedies against Borrower, then the reasonable costs and reasonable expenses  so incurred by Lender (subject to the limitations regarding the incurrence of such fees and expenses  contained in the Loan Agreement) shall be part of the Liabilities payable by Borrower to Lender  upon demand with interest at the Default Rate until actually paid.  Without limiting the generality  of the foregoing, such reasonable costs and expenses shall include the fees, expenses and charges  of attorneys, paralegals, accountants, investment bankers, appraisers, valuation and other  specialists, experts, expert witnesses, auctioneers, court reporters, telefax charges, overnight  delivery services, messenger services and reasonable expenses for travel, lodging and meals.    Borrower represents and warrants to Lender that the Liabilities and Borrower’s use of the  principal portion of the Liabilities are solely for proper business purposes and consistent with all  applicable laws, including, without limitation, Illinois Compiled Statutes, Chapter 815, Act 205,  Section 4 (815 ILCS 205/4).  Borrower further represents and warrants to Lender and covenant  unto Lender that Borrower are not in the business of extending credit for the purpose of purchasing  or carrying margin stock within the meaning of Regulation U issued by the Board of Governors of  the Federal Reserve System, and none of the principal portion of the Liabilities will be used to  purchase or carry any margin stock or to extend credit to other persons or entities for the purpose  of purchasing or carrying any margin stock.  THIS NOTE IS EXECUTED AND DELIVERED BY BORROWER TO LENDER  IN CHICAGO, ILLINOIS, AND SHALL BE GOVERNED, CONTROLLED BY AND  CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS AND STATUTES OF  

 

- 3 -  THE STATE OF ILLINOIS, AS TO INTERPRETATION, ENFORCEMENT, VALIDITY,  CONSTRUCTION, EFFECT, CHOICE OF LAW AND IN ALL OTHER RESPECTS.  This Note shall inure to the benefit of Lender, the legal holder hereof and any of their  respective successors and assigns, as the case may be, and shall be binding upon Borrower, and  their respective successors and permitted assigns.  If any provision of this Note is held to be invalid or unenforceable by a court of competent  jurisdiction, such provision shall be severed herefrom and such invalidity or unenforceability shall  not affect any other provision of this Note, the balance of which shall remain in and have its  intended full force and effect.  However, if such invalid or unenforceable provision may be  modified so as to be valid and enforceable as a matter of law, such provision shall be deemed to  have been modified so as to be valid and enforceable to the maximum extent permitted by law.  If  any rate of interest described in this Note is greater than the rate of interest permitted to be charged  or collected by applicable law, as the case may be, such rate of interest shall be reduced to the  maximum rate of interest permitted to be charged or collected by applicable law.  Borrower shall execute, acknowledge and deliver, or cause to be executed, acknowledged  or delivered, any and all such further assurances and other agreements or instruments, and take or  cause to be taken all such other action, as shall be reasonably necessary from time to time to give  full effect to the Loan Documents and the transactions contemplated thereby.  This Note evidences indebtedness incurred under, and is subject to the terms and provisions  of, the Loan Agreement.  The Loan Agreement, to which reference is hereby made, sets forth said  terms and provisions, including those under which this Note may or must be paid prior to its due  date or may have its due date accelerated.  In the event of any conflict between this Note and the  Loan Agreement, the Loan Agreement controls.  BORROWER HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL  PROCESS AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE  BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO BORROWER AS  SET FORTH IN THE LOAN AGREEMENT IN THE MANNER PROVIDED BY APPLICABLE  STATUTE, LAW, RULE OF COURT OR OTHERWISE, WITH A COPY OF SERVICE SENT  TO BORROWER’S ATTORNEY AS SET FORTH IN SECTION 12.14 OF THE LOAN  AGREEMENT.  Borrower and Lender irrevocably agrees, and hereby consents and submits to the non- exclusive jurisdiction of the Circuit Court of Cook County, Illinois, and the United States District  Court for the Northern District of Illinois, Eastern Division, with regard to any actions or  proceedings arising from, relating to or in connection with the Liabilities, this Note, any of the  Covenants, the Collateral Documents or any collateral or security for the Liabilities or the  Covenants.  BORROWER HEREBY WAIVES ITS RIGHT TO TRANSFER OR CHANGE THE  VENUE OF ANY LITIGATION FILED IN THE CIRCUIT COURT OF COOK COUNTY,  ILLINOIS, OR THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT  OF ILLINOIS, EASTERN DIVISION.  BORROWER AND LENDER EACH HEREBY  WAIVES THEIR RESPECTIVE RIGHT TO TRIAL BY JURY.  

 

- 4 -  This Note is a renewal, replacement, extension and amendment (but not a payment or  refinancing) of that certain Revolving Note made by Borrower in favor of Lender dated as of  August 13, 2021, in the original principal amount of $7,500,000.00 (the “Prior Note”).  The  indebtedness evidenced by the Prior Note is continuing indebtedness evidenced hereby, and  nothing herein shall be deemed to constitute a payment, settlement or novation of the Prior Note,  or to release or otherwise adversely affect any lien, mortgage or security interest securing such  indebtedness or any rights of the Lender against any guarantor, surety or other party primarily or  secondarily liable for such indebtedness.  [Signature Page Follows]oldplankwintrusthalofirs

FIRST AMENDMENT TO DEPOSIT ACCOUNT PLEDGE AGREEMENT THIS FIRST AMENDMENT TO DEPOSIT ACCOUNT PLEDGE AGREEMENT (this  “First Amendment”) is made and entered into as of October 24, 2022, by and between HALO, PURELY FOR PETS, INC., a Delaware corporation (“Pledgor”), and OLD PLANK TRAIL  COMMUNITY BANK, N.A., a national banking association (“Lender”).   W I T N E S S E T H: WHEREAS, prior hereto, Lender provided certain loans, extensions of credit and other  financial accommodations to Pledgor pursuant to (a) that certain Loan and Security Agreement  dated as of January 6, 2021, as amended by that certain First Amendment to Loan and Security  Agreement dated as of August 13, 2021, that certain Second Amendment to Loan and Security  Agreement dated as of March 25, 2022, and that certain Third Amendment to Loan and Security  Agreement of even date herewith (the “Third Amendment to Loan Agreement”), each by and  between Lender and Pledgor, as may be further amended or restated from time to time  (collectively, the “Loan Agreement”), (b) that certain Deposit Account Pledge Agreement dated  as of August 13, 2021, by and between Pledgor and Lender (the “Pledge Agreement”), and (c)  the other documents, agreements and instruments referenced in the Loan Agreement or executed  and delivered pursuant thereto;   WHEREAS, Pledgor has requested that Lender provide certain additional financial  accommodations to Pledgor pursuant to the Third Amendment to Loan Agreement (the  “Additional Financial Accommodations”); and WHEREAS, Lender is willing to provide the Additional Financial Accommodations, but  solely on the terms and subject to the provisions set forth in the Third Amendment to Loan  Agreement, this First Amendment and the other agreements, documents and instruments  referenced therein or executed and delivered pursuant thereto.   NOW, THEREFORE, in consideration of the foregoing, the mutual promises and  understandings of the parties hereto set forth herein and other good and valuable consideration,  the receipt and sufficiency of which is hereby acknowledged, Lender and Pledgor hereby agree  to amend the Pledge Agreement on the terms set forth in this First Amendment.  I. Definitions.  Except as expressly set forth in this First Amendment, all terms which have  an initial capital letter where not required by the rules of grammar are defined in Loan  Agreement or the Pledge Agreement.  II. Amendment to Pledge Agreement.    A. Effective as of the date of this First Amendment, the fourth paragraph of the  Pledge Agreement which is titled “Required Pledge Amount” is hereby amended by deleting  such paragraph in its entirety and substituting therefor the following:  “Required Pledge Amount. The term “Required Pledge Amount” in this  

 

-2- Agreement means an amount equal to $6,300,000.00.  Pledgor covenants and agrees to  deposit or otherwise maintain in the Account at all times the Required Pledge Amount.”  III. Conditions Precedent. Lender’s obligation to provide the Additional Financial  Accommodations to Pledgor is subject to the full and timely performance and satisfaction of the  following covenants and conditions:  A. Pledgor executing and delivering, or causing to be executed and delivered to  Lender, the following documents, each of which shall be in form and substance acceptable to  Lender:  (i) this First Amendment; and  (ii) such other agreements, documents and instruments as the Lender may  reasonably request.  B. No Event of Default or Unmatured Event of Default exists under the Loan  Agreement or the Pledge Agreement, as amended by this First Amendment.  IV. Conflict.  If, and to the extent, the terms and provisions of this First Amendment  contradict or conflict with the terms and provisions of the Pledge Agreement, the terms and  provisions of this First Amendment shall govern and control; provided, however, to the extent  the terms and provisions of this First Amendment do not contradict or conflict with the terms and  provisions of the Pledge Agreement, the Pledge Agreement, as amended by this First  Amendment, shall remain in and have its intended full force and effect, and Lender and Pledgor  each hereby affirms, confirms and ratifies the same.  V. Severability.  Wherever possible, each provision of this First Amendment shall be  interpreted in such manner as to be valid and enforceable under applicable law, but if any  provision of this First Amendment is held to be invalid or unenforceable by a court of competent  jurisdiction, such provision shall be severed herefrom and such invalidity or unenforceability  shall not affect any other provision of this First Amendment, the balance of which shall remain  in and have its intended full force and effect.  Provided, however, if such provision may be  modified so as to be valid and enforceable as a matter of law, such provision shall be deemed to  be modified so as to be valid and enforceable to the maximum extent permitted by law.  VI. Reaffirmation.  Pledgor hereby reaffirms and remakes all of the representations,  warranties, covenants, duties, obligations and liabilities contained in the Pledge Agreement, as  amended hereby.    

 

-3- VII. Fees, Costs and Expenses.  Pledgor agrees to pay, upon demand, all fees, costs and  expenses of Lender, including, but not limited to, a loan fee and reasonable attorneys’ fees, in  connection with the Additional Financial Accommodations provided hereunder and the  preparation, execution, delivery and administration of this First Amendment and the other  agreements, documents and instruments executed and delivered in connection herewith or  pursuant hereto.  VIII. Choice of Law.  This First Amendment has been delivered and accepted in Chicago,  Illinois, and shall be governed by and construed in accordance with the laws of the State of  Illinois, regardless of the laws that might otherwise govern under applicable principles of  conflicts of law as to all matters, including matters of validity, construction, effect, performance  and remedies.  IX. Counterparts.  This First Amendment may be executed in two or more counterparts,  each of which will be deemed an original, but all of which together will constitute one and the  same instrument.   A facsimile or email transmitted executed counterpart to this First  Amendment and the other agreements, documents and instruments executed in connection  herewith will be deemed an acceptable original for purposes of consummating this First  Amendment and such other agreements, documents and instruments; provided, however, Pledgor  shall be required to deliver to Lender original executed signature pages in substitution for said  facsimile or email transmitted signature pages upon Lender’s request therefor.    X. Waiver of Jury Trial.  PLEDGOR AND LENDER EACH HEREBY WAIVE THEIR  RESPECTIVE RIGHT TO TRIAL BY JURY.  XI. Waiver of Claims.  IN CONSIDERATION OF THE LENDER’S EXECUTION AND  DELIVERY OF THIS FIRST AMENDMENT, AND EXCEPTING CAUSES OF ACTION OR  CLAIMS FOR LENDER’S WILLFUL MISCONDUCT, PLEDGOR HEREBY WAIVES,  RELEASES AND FOREVER DISCHARGES THE LENDER, ITS PREDECESSORS,  PARENTS, SUBSIDIARIES, AFFILIATES, AGENTS, EMPLOYEES, OFFICERS,  DIRECTORS, SHAREHOLDERS, ATTORNEYS, LEGAL REPRESENTATIVES,  SUCCESSORS AND ASSIGNS, AND EACH OF THEM, OF AND FROM ANY AND ALL  CLAIMS, DEMANDS, COUNTERCLAIMS, SET-OFFS, DEFENSES, DEBTS,  OBLIGATIONS, COSTS, EXPENSES, ACTIONS, CAUSES OF ACTION AND DAMAGES  OF EVERY KIND, NATURE AND DESCRIPTION WHATSOEVER, KNOWN OR  UNKNOWN, FORESEEABLE OR UNFORESEEABLE, LIQUIDATED OR  UNLIQUIDATED, AND INSURED OR UNINSURED, WHICH PLEDGOR HERETOFORE,  NOW OR FROM TIME TO TIME HEREAFTER OWNS, HOLDS OR HAS BY REASON OF  ANY MATTER, CAUSE OR THING WHATSOEVER, ARISING ON OR BEFORE THE  DATE OF THIS FIRST AMENDMENT FROM, RELATING TO OR IN CONNECTION  WITH THE PLEDGE AGREEMENT AS AMENDED HEREBY, THE LOANS, ANY OF THE  OTHER LOAN DOCUMENTS, THE LIABILITIES, ANY COLLATERAL FOR THE  LIABILITIES AND ANY AGREEMENT, DOCUMENT OR INSTRUMENT EVIDENCING  ANY OF THE FOREGOING.  [signature page follows]

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