Document:

ex_367942.htm

 

Exhibit 10.3

 

AMENDMENT NO. 2 TO AMENDED AND RESTATED

 

LOAN AND SECURITY AGREEMENT

 

This Amendment No. 2 to the Amended and Restated Loan and Security Agreement ("Amendment") is made this 19th day of January, 2022, by and between CRESTMARK, A DIVISION OF METABANK, NATIONAL ASSOCIATION, whose address is 5480 Corporate Drive, Suite 350, Troy, Michigan 48098 ("Crestmark"), as assignee of Crestmark Bank, CLR ROASTERS, LLC, a Florida limited liability company, whose chief executive office is located at 2131 N.W. 72nd Avenue, Miami, Florida 33122 ("Borrower"), and YOUNGEVITY INTERNATIONAL, INC., a Delaware corporation, whose address is 2400 Boswell Rd., Chula Vista, CA 91914, STEPHAN R. WALLACH, an individual with an address at 12 Spinnaker Way, Coronado, CA 92118 and DAVID BRISKIE, an individual with an address at 415 Hendricks Isle, Fort Lauderdale, FL 33301 (individually and collectively referred to as "Guarantor"). This amends that certain Amended and Restated Loan and Security Agreement executed November 16, 2017, as amended by Amendment No. 1 dated December 29, 2017 (as so amended, the "Agreement").

 

BACKGROUND:

 

The parties have executed the Agreement and Loan Documents;

 

The Borrower and Guarantor are indebted and/or obligated to Crestmark without offset or deduction pursuant to the Agreement and the Loan Documents all of which are in full force and effect; and

 

Borrower, Crestmark, and Guarantor, desire to modify and amend certain terms, conditions, covenants and obligations contained in the Agreement and the Loan Documents, including, as set forth below.

 

Accordingly, the parties agree as follows:

 

	 	
			1.

				
			DEFINED TERMS:

			

 

Capitalized terms that are not otherwise defined in this Amendment shall have the meanings ascribed to them in the Agreement.

 

	 	
			2.

				
			AMENDMENT AND MODIFICATION TO THE AGREEMENT:

			

 

A.    The text contained in Section 2 of the Schedule to the Agreement prior to the text that reads, ""Eligible Accounts" means and includes those Accounts, unless otherwise approved by Crestmark which:" is hereby deleted in its entirety, and in lieu thereof, the following is inserted:

 

"2.         LOAN: LOAN ADVANCES.

 

Advance Formula: Advances of the Loan may be measured against a percentage of Eligible Accounts.

 

The Loan Amount may not exceed an amount which is the lesser of:

 

	 	
			(a)

				
			Three Million and 00/100 Dollars ($3,000,000.00) ("Maximum Amount"); or

			

 

	 	
			(b)

				
			the sum of:

			

 

	 	
			(i)

				
			up to eighty-five percent (85%) of Eligible Accounts; PLUS

			

 

	 	
			(ii)

				
			the lesser of One Million and 00/100 Dollars ($1,000,000.00) or fifty percent (50%) of Eligible Inventory, or fifty percent (50%) of (i) above.

			

 

(subparagraphs (i) - (ii) are collectively the "Advance Formula").

 

Crestmark in its sole discretion may raise or lower any percentage advance rate with respect to the Advance Formula."

 

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			3.

				
			REAFFIRMATION Of GUARANTY:

			

 

As a specific inducement to Crestmark to enter into the Agreement, YOUNGEVITY INTERNATIONAL, INC. has executed a Corporate Guaranty dated November 16, 2017 ("CG"), STEPHEN R. WALLACH, has executed a Personal Guaranty dated November 16, 2017 ("PG"), and DAVID BRISKIE has executed a Guaranty of Validity dated November 16, 2017 ("VG" and together with the CG and the PG, individually and collectively, the "Guaranty"). Guarantor hereby acknowledges and agrees to the amendments and modification set forth above and reaffirms the Guaranty with respect to all liabilities, obligations and the Indebtedness therein guaranteed as herein amended and modified. Guarantor further acknowledges that Guarantor remains liable in accordance with the terms of the Guaranty without offset or counterclaim. Each Guarantor also acknowledges and agrees that each Guarantor's liability under its respective Guaranty is as set forth in the Guaranty. The CG further acknowledges and agrees that its Guaranty is secured by a security interest in all of its assets, and that such interest is in full force and effect.

 

	 	
			4.

				
			EXPENSES:

			

 

In consideration of the extension of the Loan and the execution of this Amendment, Borrower will pay Crestmark a fee of $2,500.00, which fee is fully earned as of the date hereof, and non­ refundable. Borrower will promptly pay all expenses, fees and costs incurred by Crestmark with respect to the preparation, execution, and delivery of this Amendment, and all other documents contemplated herewith, including reasonable attorneys' fees.

 

	 	
			5.

				
			NO WAIVER:

			

 

Borrower acknowledges that the execution of this Amendment does not constitute a waiver or cure of any Default, whether matured or otherwise, if any, that previously existed or now exists under the Agreement or any Loan Document. By execution of this Amendment, Crestmark will not be deemed to have waived any of its rights or remedies under the Agreement or any Loan Document.

 

	 	
			6.

				
			SURVIVAL, REAFFIRMATION, AND NO DEFENSES:

			

 

Each undersigned Borrower and Guarantor agrees, in all capacities in which the signatory has executed the Agreement or any of the Loan Documents, as follows:

 

A.    That, except as herein expressly modified or amended, all terms, conditions, covenants, representations and warranties contained in the Agreement and the Loan Documents are true and correct, continue to be satisfied in all respects and are legal, valid and binding obligations. The undersigned hereby ratify, agree to and confirm the Agreement and the Loan Documents and consent to and acknowledge this Amendment.

 

B.    That payment of the Indebtedness is the valid obligation of Borrower and Guarantor and, as of the date hereof, Borrower and Guarantor have absolutely no defenses,

 

claims, rights of set-off or counterclaims against Crestmark or the payment of the Indebtedness. This Amendment shall not impair the rights, remedies and Collateral given in the Agreement and the Loan Documents.

 

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C.    That the liability of the undersigned howsoever arising or provided for in the Agreement and the Loan Documents is hereby reaffirmed.

 

	 	
			7.

				
			RELEASE:

			

 

In consideration of Crestmark executing this Amendment, Borrower and Guarantor do each hereby release and discharge Crestmark of and from any and all claims, harm, causes of action, liabilities, injuries, expenses (including attorneys' fees) and damages of any and every kind, known or unknown, legal or equitable, which Borrower or Guarantor have against Crestmark from the date of Borrower's and Guarantor's first contact with Crestmark up to the date of this Amendment. Borrower and Guarantor confirm to Crestmark that they have reviewed the effect of this release with legal counsel of their choice, or have been afforded the opportunity to do so, prior to the execution of this Amendment and each acknowledges and agrees that Crestmark is relying upon this release in executing this Amendment.

 

	 	
			8.

				
			CONFIRMATION OF LIEN UPON COLLATERAL:

			

 

The Borrower acknowledges and agrees that pursuant to the terms of the Agreement, the obligations of the Borrower and the Indebtedness are secured by a first priority lien and security interest in the Collateral (as defined in the Agreement). The Collateral is and shall remain subject to and encumbered by the lien, charge, and encumbrance of the Agreement, and nothing contained herein shall affect or be construed to affect the lien or encumbrance created by the Agreement or the priority thereof.

 

	 	
			9.

				
			NO ORAL MODlFlCATION:

			

 

This Amendment may only be altered or modified by written instrument duly executed by Borrower and Crestmark.

 

[signatures on next page]

 

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The parties hereto have executed this Agreement the day and year first appearing above.

 

"CRESTMARK"

 

CRESTMARK, A DIVISION OF METABANK, NATIONAL ASSOCIATION

 

 

By: /s/ Susan M. Hickey

Name: Susan M. Hickey                         

Its: First Vice President       

 

"BORROWER"

 

 

CLR ROASTERS, LLC,

 

a Florida limited liability company

 

By: /s/ David Briskie

Name: David Briskie

Its: Manager

 

By: /s/ Ernesto G. Aguila

Name: Ernesto G. Aguila

Its: Manager

 

 

By signing below, Guarantor acknowledges it has read and understands the Agreement and agrees to all of its terms.

 

 

"GUARANTOR"

 

YOUNGEVITY INTERNATIONAL, INC.,

 

a Delaware corporation

 

By: /s/ Stephan R. Wallach

Name: Stephan R Wallach

Its: CEO

 

/s/ Stephan R. Wallach

Stephan R Wallach, individually

 

 

/s/ David Briskie

David Briskie, individually

 

-4-ex_367943.htm

 

Exhibit 10.4

 

 

SECOND AMENDED AND RESTATED PROMISSORY NOTE

 

Principal Amount;         $3,000,000.00

 

Troy, Michigan 

Original Note Dated: November 16, 2017

Amended and Restated Note Dated: December 29, 2017 

Second Amended and Restated Note Dated: January 19, 2022

 

 

This Second Amended and Restated Promissory Note ("Note") is made by the Borrower who has signed this Note. The Borrower promises to pay to the order of CRESTMARK, A DIVISION OF METABANK, NATIONAL ASSOCIATION ("Crestmark"), as assignee of Crestmark Bank, ON DEMAND, at its offices located at 5480 Corporate Drive, Suite 350, Troy, Michigan 48098 or at such other place as Crestmark or the person that then holds this Note designates in writing, the principal amount set forth above or such lesser or greater amount as may then be due under the Agreement (as defined below), plus interest, fees and expenses as hereinafter provided. All payments that are made must be made in lawful money of the United States of America in immediately available funds. Borrower does not have any right to offset, deduction, or counterclaim from the amount due.

 

This Note is referred to in and was delivered pursuant to the Amended and Restated Loan and Security Agreement dated November 16, 2017 (as the same may have been amended, restated or otherwise modified and as may be further amended, restated, or otherwise modified, the "Agreement") between Borrower and Crestmark under which Advances, repayment and further Advances may be made from time to time, pursuant to the provisions of the Agreement. Reference is made to the Agreement for additional terms relating to this Note and the security given for this Note. Any capitalized terms used in this Note, if not defined in this Note, will have the meanings assigned to such terms in the Agreement.

 

The outstanding principal balance of this Note will bear interest based upon a year of 360 days with interest being charged for each day the principal amount is outstanding including the date of actual payment. The interest rate will be a rate which is equal to two and one-half (2.50%) percentage points in excess of that rate shown in the Wall Street Journal as the prime rate (the "Effective Rate"). Interest on this Note will change with each change in the prime rate so published. If at any time Crestmark either abandons the use of the Wall Street Journal prime rate or the Wall Street Journal prime rate is no longer published, then Crestmark will establish a similar replacement rate in its sole discretion. Notwithstanding the foregoing, at no time will the Effective Rate be less than six and three-quarters percent (6.75%) per annum.

 

 

Borrower must pay interest on the principal amount which is outstanding each month in arrears commencing on the first day of the month following the funding of the transaction, and continuing on the first day of each month thereafter until the Obligations are fully paid. If the Agreement so provides, interest will also be payable at the same rate on all other sums constituting Obligations. If any payment is due on a day which Crestmark is not open for business, then payments will be made on the next business day. Payments will be applied in the manner provided in the Agreement. If Borrower at any time pays less than the amount then due, Crestmark may accept such payment, but the failure to pay the entire amount due is a Default. The (i) failure of Borrower to comply with the provisions of the Agreement or (ii) failure to pay the Obligations following demand will permit Crestmark to charge the Extra Rate. The "Extra Rate" shall mean the Effective Rate plus eight percent (8.00%) per annum.

 

 

-1-

 

 

 

Should Borrower make any payment by mail, the payment must be actually received by Crestmark before the payment is credited but payment is still subject to the Clearance Days as defined in the Schedule to the Agreement. Borrower assumes all risk resulting from non-delivery or delay, in delivery of any payment no matter how the payment is delivered.

 

If Borrower elects to prepay this Note and/or terminate the Agreement, Borrower may do so, but only upon payment of all the Obligations, including the Exit Fee set forth in the Schedule.

 

It is the intent of the parties that the rate of interest and other charges to Borrower under this Note shall be lawful; therefore, if for any reason the interest or other charges payable hereunder are found by a court of competent jurisdiction, in a final determination, to exceed the limit Crestmark may lawfully charge Borrower, then the obligation to pay interest or other charges shall automatically be reduced to such limit and, if any amount in excess of such limit shall have been paid, then such amount shall be credited to the outstanding principal balance of this Note, or if no such amount is outstanding, refunded to Borrower.

 

 

This Note amends and restates in its entirety that certain Amended and Restated Promissory Note dated December 29, 2017 executed by Borrower in favor of Crestmark. This Note does not constitute a novation or extinguishment of the existing indebtedness evidenced by said promissory note and said indebtedness is still outstanding.

 

Borrower waives any obligation of Crestmark to present this Note for payment or to give any notice of nonpayment or notice of protest and any other notices of any kind. The liability of the Borrower is absolute and unconditional, without regard to the liability of any other party.

 

If this Note is signed by two or more parties, the obligations and undertakings under this Note shall be that of all and any two or more jointly and also each severally.

 

 

 

CLR ROASTERS, LLC,

 

a Florida limited liability company

 

By: /s/ David Briskie

Name: David Briskie

Its: Manager

 

By:  /s/ Ernesto G. Aguila

Name: Ernesto G. Aguila

 

Its: Manager

 

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