Document:

EX-10.20

 Exhibit 10.20 

PMC Financial Services Group, LLC 

Schedule #2 to 
 Loan
and Security Agreement 
  

			
	 Borrower:
	  	 THE REAL GOOD FOOD COMPANY, LLC

		
	 Address:
	  	 3960 W. Hemlock St.

Oxnard, CA 93035

		
	 Date:
	  	 December 01, 2019 (the “Effective Date”)

 This Schedule forms an integral part of the Loan and Security Agreement between PMC Financial Services Group,
LLC and the above-borrower of even date, and is supplementary to the existing Schedules. 
  

 
  

 

	 1. LOAN AMOUNT (Section 1.1): 
	 $ 1,714,462.81 (the “Cap Ex Loan”) 

 

	 	 Subject to the terms and conditions of this Agreement, Lender hereby terms out the existing Capital
Expenditures Loans in the amount of $1,714,462.81, plus any accrued and unpaid interim interest thereon. 

  

	 	 The Cap Ex Loan shall be repaid by the Borrower to Lender as follows: three months of interest only payments
commencing on January 31, 2019 and continuing on the last day of each month thereafter, followed by equal payments of principal, plus accrued but unpaid interest, in the amount of $38,289.80, on the last day of each calendar month commencing on
April 30, 2019, and continuing on the last day of each month thereafter with the remaining principal balance plus all other Obligations relating to the CapEx Loan (including accrued and unpaid interest thereon) due in a balloon payment on the
Maturity Date. Any portion of the Cap Ex Loan that is repaid may not be reborrowed. 

  

	 	 Payments shall be made by ACH transfer on the date due. If any payment of principal or accrued interest is not
made within ten days after the date due, Borrower shall pay Lender a late payment fee equal to 5% of the amount of such late payment. The provisions of this paragraph shall not be construed as Lender’s consent to Borrower’s failure to pay
any amounts when due, and Lender’s acceptance of any such late payments shall not restrict Lender’s exercise of any remedies arising out of any such failure. 

MATURITY DATE 
  

	 	 The earliest of the following dates (“Maturity Date”): (i) the date all Obligations have been paid in
full and all commitments of Lender hereunder to extend credit hereunder have terminated; or (ii) June 30, 2021; 

	 	 or (iii) the date this Agreement terminates by its terms or is terminated, as provided in this Agreement.
On the Maturity Date (or, if earlier, upon acceleration of the Obligations in accordance with the terms of this Agreement), the entire unpaid principal balance of the Cap Ex Loan , plus all other Obligations relating to the Cap Ex Loan (including
accrued and unpaid interest thereon) shall be due and payable. 

  

 
  

2. INTEREST. 
  

	         Interest Rate (Section 1.2 
	 The Capex Loan shall continue to bear interest at an annual rate equal to the “Prime Rate” as of the Effective date of the
Schedule (June 30, 2016), plus 8.50%, which was then 12.0% (but will have this as a fixed/set monthly payment for the entire term for cash flow and accounting purposes). If the Prime Index Rate, should increase from June 30, 2016 any additional
interest on the Loans shall be charged on a quarterly basis. Conversely, if the prime rate should go down, the Borrower will benefit on this as well, but never lower than the initial interest rate at funding of 12.0% per annum.

  

	 	 Interest shall be computed on the basis of a 360-day year for the
actual number of days elapsed. Without limited any of Lender’s rights and remedies, from and after the occurrence and during the continuance of any Event of Default, the interest rate applicable to the Obligations shall be increased by an
additional five percent (5.0%) per annum (the “Default Rate”). 

 Usury Savings Clause:

  

	 	 Notwithstanding the provisions of this Agreement regarding the rates of interest applicable to the Cap Ex Loan
and other loans hereunder, if at any time the amount of such interest computed on the basis of the interest rate set forth herein (the “Applicable Interest Rate”) would exceed the amount of such interest computed upon the basis of the
maximum rate of interest permitted by applicable state or federal law in effect from time to time hereafter, after taking into account, to the extent required by applicable law, any and all fees, payments, charges and calculations provided for in
this Agreement or in any other agreement between Borrower and Lender (the “Maximum Legal Rate”), the interest payable under this Agreement shall be computed upon the basis of the Maximum Legal Rate, but any subsequent reduction in the
Applicable Interest Rate shall not reduce such interest thereafter payable hereunder below the amount computed on the basis of the Maximum Legal Rate until the aggregate amount of such interest accrued and payable under this Agreement equals the
total amount of interest which would have accrued if such interest had been at all times computed solely on the basis of the Applicable Interest Rate. 

  

	 	 No agreements, conditions, provisions or stipulations contained in this Agreement or any other instrument,
document or agreement between the Borrower and Lender or default of the Borrower, or the exercise by Lender 

	 	 of the right to accelerate the payment of the maturity of principal and interest, or to exercise any option
whatsoever contained in this Agreement or any other agreement between the Borrower and Lender, or the arising of any contingency whatsoever, shall entitle Lender to collect, in any event, interest exceeding the Maximum Legal Rate and in no event
shall the Borrower be obligated to pay interest exceeding such Maximum Legal Rate and all agreements, conditions or stipulations, if any, which may in any event or contingency whatsoever operate to bind, obligate or compel the Borrower to pay a rate
of interest exceeding the Maximum Legal Rate, shall be without binding force or effect, at law or in equity, to the extent only of the excess of interest over such Maximum Legal Rate. In the event any interest is charged in excess of the Maximum
Legal Rate (“Excess”), the Borrower acknowledges and stipulates that any such charge shall be the result of an accidental and bona fide error, and such Excess shall be, first, applied to reduce the principal then unpaid hereunder; second,
applied to reduce the remaining Obligations; and third, returned to the Borrower, it being the intention of the parties hereto not to enter at any time into a usurious or otherwise illegal relationship. The Borrower recognizes that, with
fluctuations in the Applicable Interest Rate and the Maximum Legal Rate, such an unintentional result could inadvertently occur. By the execution of this Agreement, the Borrower covenants that (i) the credit or return of any Excess shall
constitute the acceptance by the Borrower of such Excess, and (ii) the Borrower shall not seek or pursue any other remedy, legal or equitable, against Lender, based in whole or in part upon the charging or receiving of any interest in excess of
the maximum authorized by applicable law. For the purpose of determining whether or not any Excess has been contracted for, charged or received by Lender, all interest at any time contracted for, charged or received by Lender in connection with this
Agreement shall be amortized, prorated, allocated and spread in equal parts during the entire term of this Agreement. 

  

	 	 The provisions of this usury savings clause shall be deemed to be incorporated into every document or
communication relating to the Obligations which sets forth or prescribes any account, right or claim or alleged account, right or claim of Lender with respect to the Borrower (or any other obligor in respect of Obligations), whether or not any
provision of this usury savings clause is referred to therein. All such documents and communications and all figures set forth therein shall, for the sole purpose of computing the extent of the liabilities and obligations of the Borrower (or other
obligor) asserted by Lender thereunder, be automatically recomputed by any Borrower or obligor, and by any court considering the same, to give effect to the adjustments or credits required by this usury savings clause. 

 

	 	 If the applicable state or federal law is amended in the future to allow a greater rate of interest to be
charged under this Agreement or any other Loan Documents than is presently allowed by applicable state or federal law, then the limitation of interest under this usury savings clause shall be increased to the maximum rate of interest allowed by
applicable state or federal law as amended, which increase shall be effective hereunder on the effective date of such amendment, and all interest charges owing to Lender by reason thereof shall be payable upon demand. 

 
  

 
 3. FEES (Section 1.4): 

 

	           Facility Fee: 
	 The (1.0%) Facility Fee will be waived by Lender. 

  

 
 4. FINANCIAL COVENANTS 

(Section 5.1): 
  

	 	 No Financial Covenants 

 
  

 
 5. REPORTING. 

(Section 5.3): 
  

	 	 Same reporting requirements set forth in previous Schedule 

 
  

 
 6. BORROWER INFORMATION: 

 

	 	 Borrower represents and warrants that the information set forth in the Representations and Warranties of the
Borrower delivered on or about April 28, 2016 and previously submitted to Lender (the “Representations”) is true and correct as of the date hereof. 

 
  

 
 7. COLLATERAL: 

 

	 	 This Capex Loan is secured, in part, by a 1st priority
lien on Borrower’s specific equipment listed in Exhibit A 

 [remainder of page intentionally left blank] 

					
	 Borrower:
	 		 	 Lender:

			
	 THE REAL GOOD FOOD COMPANY, LLC
	 		 	 PMC Financial Services Group, LLC,

a Delaware limited liability company

	 By:   /s/ Bryan
Freeman                              
	 		 	
	 Name:  Bryan Freeman
	 		 	 By:   /s/ Walter E. Buttkus,
III                                        
            

	 Title:  Chief Executive Officer
	 		 	 Name:  Walter E. Buttkus, III

		 		 	 Title:  President

 Exhibit A 

[***]EX-10.21

 Exhibit 10.21 

AMENDMENT NUMBER FIFTEEN TO 

LOAN AND SECURITY AGREEMENT 

THIS AMENDMENT NUMBER FIFTEEN TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of December 7,
2020 (the “Amendment Fifteen Effective Date”) is entered into between PMC FINANCIAL SERVICES GROUP, LLC, a Delaware limited liability company (“Lender”), and THE REAL GOOD FOOD COMPANY LLC
(“Borrower”), in light of the following: 
 RECITALS 

WHEREAS, Borrower and Lender have previously entered into that certain Loan and Security Agreement, dated as of June 30,
2016, as amended (the “Agreement”). 
 WHEREAS, Lender previously made Revolving Loans pursuant to the terms of
the Agreement. 
 WHEREAS, Borrower has requested that Lender increase maximum amount of the Approved Overadvance Loans .

 WHEREAS, Borrower and Lender wish to amend the Agreement by modifying the terms of Revolving Loans. 

NOW, THEREFORE, the parties agree as follows: 

1.       DEFINITIONS. All terms which are defined in the Agreement shall have the same definition
when used herein unless a different definition is assigned to such term under this Amendment. 

2.       WAIVER OF DEFAULT. Lender hereby waives the Existing Event of Default through the Amendment
Date. 
 3.       AMENDMENTS. Effective as of the Amendment Fourteen Effective Date (as that term
is defined in Section 4 of this Amendment), the Agreement is amended as follows: 

3.1       Additional Definitions. Section 8 of the Agreement is
amended by adding the definitions of “Amendment Fourteen” and “Amendment Fourteen Effective Date” as follows: 

“Amendment Fifteen” means that certain Amendment Number Fifteen to Loan and Security Agreement, dated as of
December 3, 2020, between Lender and Borrower. 
 “Amendment Fifteen Effective Date” shall have the
meaning set forth in the preamble to Amendment Fifteen. 

  
 1 

 3.2       Change in the Definition
of “Revolving Loans”. The definition of “Revolving Loans” in Section lA of the Schedule to Loan and Security Agreement is deleted in its entirety and is replaced with the following: 

A. Revolving Loans. Subject to the terms and conditions of this Agreement, Lender agrees to make
revolving advances (“Revolving Loans”) in an aggregate outstanding amount not to exceed at any time the lesser of the following: (1) $36,500,000 (the “Maximum Revolver Amount”) or (2) the Borrowing Base (as defined below).

 3.3       Change in the Definition of “Borrowing Base”. Clause
(c) in the definition of Borrowing Base in Section lA of the Schedule to Loan and Security Agreement is deleted in its entirety and is replaced with the following: 
  

	 	(c)	 Lender may, in its sole discretion, make Loans to Borrower from time to time which exceed the limitations of
the borrowing against Eligible Receivables as set forth in subparagraph (a) above or which exceed the limitations on borrowing against Eligible Inventory as set forth in subparagraph (b) above, (the “Approved Overadvance Loans”).
The aggregate outstanding Approved Overadvance Loans shall not at any time exceed (a) $25,000,000 from the Amendment Fifteen Effective Date through December 18, 2020, (b) $24,500,000 from December 21, 2020 through June 30, 2021, and
(c) zero ($0.00) at all times thereafter; provided, however, the aggregate amount of outstanding Revolving Loans, including any Approved Overadvance Loans, shall not at any time exceed the Maximum Revolver Amount. Subsequent to June 30,
2021, Lender shall no longer advance any Approved Overadvance Loans. Notwithstanding the terms of the previous sentence to the contrary, at such time that Borrower raises additional equity adequate to repay all outstanding Approved Overadvance
Loans, no Approved Overadvance Loans shall be permitted thereafter and the Borrowing Base shall be thereafter defined as the sum of clauses (a) and (b) below: 
	 

 (a)       85% (the
“A/R Advance Rate”, and also an “Advance Rate”) of the amount of Borrower’s Eligible Accounts (as defined in Section 8 above). Such advance rate shall be reduced (i) to 80% if Borrower’s rolling 3 month
Dilution exceeds 7.5%, but remains less than 10%, (ii) to 75% if Borrower’s rolling 3 month Dilution exceeds 10% but remains less than 15%, and (iii) to such lower advance rate determined by Lender if Dilution exceeds 15%, plus.
Lender reserves the right to make accommodation in the dilution calculation (for example, one-time slotting fees). 

  
 2 

 (b)       75%
of Eligible Inventory consisting of finished goods and 60% of Eligible Inventory consisting of raw materials (the “Inventory Advance Rate”, and also an “Advance Rate”) of the value of Borrower’s Eligible Inventory
(as defined in Section 8 above), calculated at the lower of cost or market value and determined on a first-in, first-out basis. 

3.4       Addition of New Success Fee. A new “Success Fee”
is added to Section 3 of the Schedule as follows: 
  

	 	Success Fee:	 Borrower agrees to pay Lender a success fee (the “Success Fee”) in the amount of $1,250,000. The
Success Fee shall be deemed fully earned on the Amendment Fifteen Effective Date. The Success Fee is in addition to any other success fees that they previously been charged to Borrower. The Success Fee shall be payable upon the earlier of
(a) June 30, 2021, (b) the date that Borrower raises additional equity equal to or greater than the outstanding Approved Overadvance Loans at such time plus the Success Fee, (c) repayment of total indebtedness due to Lender or
(d) sale of the Borrower. 
	 

 3.5       Change in the Definition of
“Revolving Maturity Date”. The definition of “Revolving Maturity Date” in Section 4 of the Schedule to Loan and Security Agreement is deleted in its entirety and is replaced with the following: 

  As used herein, the term “Revolver Maturity Date” means June 30, 2021. 

4.       CONDITION PRECEDENT. 

4.1       The following is a condition precedent to the effectiveness of this Amendment:

 A.       Lender shall have received a fully executed copy of this Amendment. 

5.       REPRESENTATIONS AND WARRANTIES. Borrower hereby affirms to Lender that all of
Borrower’s representations and warranties set forth in the Agreement are true, complete and accurate in all respects as of the date hereof. 

6.       LIMITED EFFECT. Except for the specific amendment contained in this Amendment, the
Agreement shall remain unchanged and in full force and effect. 
 7.       RELEASE BY BORROWER.
Borrower, for itself, and for its agents, servants, officers, directors, shareholders, employees, heirs, executors, administrators, successors and assigns, forever release and discharge Lender and its servants, employees, accountants, attorneys,
shareholders, subsidiaries, officers, directors, heirs, executors, administrators, successors and assigns from any and all claims, demands, liabilities, accounts, obligations, costs, expenses, 

  
 3 

 liens, actions, causes of action, rights to indemnity (legal or equitable), rights to
subrogation, rights to contribution and remedies of any nature whatsoever, known or unknown, which Borrower had, now has, or has acquired, individually or jointly, at any time prior to the Agreement Date, including specifically, but not exclusively,
and without limiting the generality of the foregoing, any and all of the claims, damages, demands and causes of action, known or unknown, suspected or unsuspected by Borrower which: 

7.1       Arise out of the Loan Documents; 

7.2       Arise by reason of any matter or thing alleged or referred to in, directly or
indirectly, or in any way connected with, the Loan Documents; or 
 7.3       Arise out
of or in any way are connected with any loss, damage, or injury, whatsoever, known or unknown, suspected or unsuspected, resulting from any act or omission by or on the part of the Lender or any party acting on behalf of Lender. 

8.       WAIVER OF CALIFORNIA CIVIL CODE SECTION 1542. Borrower acknowledges that there is a risk
that subsequent to the execution of this Agreement it may incur or suffer losses, damages or injuries which are in some way caused by the transactions referred to in the Loan Documents or this Agreement, but which are unknown and unanticipated at
the time this Agreement is executed. Borrower does hereby assume the above mentioned risks and agree that this Agreement shall apply to all unknown or unanticipated results of the transactions and occurrences described herein, as well as those known
and anticipated, and upon advice of counsel, Borrower does hereby knowingly waive any and all rights and protections under California Civil Code Section 1542 which section has been duly explained and reads as follows: 

“A general release does not extend to claims that the creditor or releasing party does not know or
suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.” 

9.       LEGAL ADVICE OBTAINED. The advice of legal counsel has been obtained by each party prior to
signing this Agreement and each party executes this Agreement voluntarily, with full knowledge of its significance, and with the express intention of effecting the legal consequences provided by Section 1541 of the California Civil Code,
namely, the extinguishment of obligations except for the executory provisions of this Agreement. 

10.       COUNTERPARTS; EFFECTIVENESS. This Amendment may be executed in any number of counterparts
and by different parties on separate counterparts, each of which when so executed and delivered shall be deemed to be an original. All such counterparts, taken together, shall constitute but one and the same Amendment. This Amendment shall become
effective upon the execution of this Amendment by each of the parties hereto. 

  
 4 

 IN WITNESS WHEREOF, Lender and Borrower have executed this Amendment. 

 

	
	THE REAL GOOD FOOD COMPANY LLC
	
	By   /s/ Bryan Freeman                             
           
	 Name: Bryan Freeman

	 Title: Chairman

  

  
 Signature Page to
Amendment Number Fifteen to Loan and Security Agreement 

 
	
	PMC FINANCIAL SERVICES GROUP, LLC
	
	By   /s/ Walter E. Buttkus, III                          
          
	 Name: Walter E. Buttkus, III

	 Title: President

  

  
 Signature Page to
Amendment Number Fifteen to Loan and Security Agreement

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