Document:

Exhibit 10.40

  

  

    
      
        
          Execution Version

        

        
          

          

        

        
          CONSENT, JOINDER AND FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

        

        
          

          

        

        
          This Consent, Joinder and Fourth Amendment to Loan and Security Agreement (the “Fourth Amendment”) is made as of this 22 day of July,
            2020, by and among:

        

        
          

          

        

        
          SANTANDER BANK, N.A., a national bank having a place of business at 28 State Street, Boston, Massachusetts 02109 (the “Lender”);

        

        
          

          

        

        
          JANEL GROUP, INC., a New York corporation (hereinafter referred to as “Janel” or “Existing Borrower”, and together with the New Borrower (defined below), individually and collectively, and jointly and severally referred to herein as “Borrower”);

        

        
          

          

        

        
          JANEL CORPORATION, a Nevada corporation (“Parent”), as a Loan Party Obligor,

        

        
          and

        

        
          

          

        

        
          ATLANTIC CUSTOMS BROKERS, INC., a Connecticut corporation (the “New Borrower”),

        

         

        
          

          

        

        
          in consideration of the mutual covenants herein contained and benefits to be derived herefrom.

        

        
          

          

        

        
          W I T N E S S E T H:

        

        
          

          

        

        
          WHEREAS, Janel, the Parent, certain other Subsidiaries of the Parent, and the Lender entered into that certain Loan and Security Agreement dated as of October 17, 2017, as amended pursuant to
            that certain Limited Waiver, Joinder and First Amendment to Loan and Security Agreement, dated as of March 21, 2018, that certain Limited Waiver, Joinder and Second Amendment to Loan and Security Agreement, dated as of November 20, 2018, and
            that certain Third Amendment to Loan and Security Agreement dated March 4, 2020 (together with any further modifications, amendments, and restatements thereof, the “Agreement”);

        

        
          

          

        

        
          WHEREAS, the Loan Parties have requested that the Lender modify and amend certain terms and conditions of the Agreement; and

           

          

        

        
          WHEREAS, in connection therewith, among other things, the New Borrower desires to become a party to and to be bound by the terms of the Agreement and the other Loan Documents and to become a
            Loan Party Obligor (as a Borrower) in the same capacity and to the same extent as the existing Loan Party Obligors thereunder and, in connection therewith, the parties desire to amend the Agreement as set forth herein; and

           

          

        

        
          WHEREAS, the Lender has agreed to modify and amend certain terms and conditions of the Agreement, all as provided for herein.

        

        
          

          

        

        
          NOW, THEREFORE, it is hereby agreed among the parties hereto as follows:

        

        
          

          

        

        
          	1.	
                  Capitalized Terms. All capitalized terms used herein and not otherwise defined shall have the same meaning herein as in the
                      Agreement.

                

        

        

        
          

          
            

          

        

        
        
          	2.	
                  Amendments to Agreement.

                

        

        
          

          

          
            	

                  	a.	
                    Schedule B of the Agreement (Definitions) is hereby amended as follows:

                  

          

        

        

        

        
          	

                	i.	
                  By inserting the following new definitions in their correct alphabetical order:

                

        

        
          

          

        

        
          	

                	A)	
                  “ACH Expense” means the one-time expense of $110,000 incurred in connection with certain ACH matters.”

                

        

        
          

          

        

        
          	

                	B)	
                  “Acquisition Seller Financing” means any unsecured Indebtedness incurred in connection with an acquisition made by the Parent, or any wholly-owned Subsidiary of the Parent,
                    and subordinated on terms and conditions satisfactory to the Lender; provided, however, that the aggregate outstanding principal amount of such Indebtedness shall not exceed $1,500,000 at any time. For the avoidance of
                    doubt, the aggregate amount of Acquisition Seller Financing as of the Fourth Amendment Effective Date (for avoidance of doubt, after giving effect to the Atlantic Acquisition) is $1,162,000

                

        

        
          

          

        

        
          	

                	C)	
                  “Atlantic” means Atlantic Customs Brokers, Inc., a Connecticut corporation.

                

        

        
          

          

        

        
          	

                	D)	
                  “Atlantic Acquisition” means the acquisition by the Janel of the Atlantic Shares in accordance with the provisions of this Agreement and the Atlantic Acquisition
                    Documentation.

                

        

        
          

          

        

        
          	

                	E)	
                  “Atlantic Acquisition Documentation” means that certain Stock Purchase Agreement dated as of July 22, 2020 by and among the Janel, as purchaser and Peter Schlesinger as
                    “Seller” together with any other documents executed and delivered in connection therewith.

                

        

        
          

          

        

        
          	

                	F)	
                  “Atlantic Deferred Purchase Price Payment” means any of the scheduled payments in connection with the Atlantic Acquisition required to be made in accordance with the
                    provisions of Section 3.1.3, 3.1.4, and 3.1.5 of the Stock Purchase Agreement referred to in the definition of Atlantic Acquisition Documents.

                

        

        
          

          

        

        
          	

                	G)	
                  “Atlantic Shares” has the same meaning as the term “Shares” as defined in the Atlantic Acquisition Documentation.

                

        

        
          

          

        

        
          	

                	H)	
                  “Fourth Amendment” means that certain Consent, Joinder and Fourth Amendment to Loan and Security Agreement dated as of the Fourth Amendment Effective Date by and among the
                    Lender and the Borrower, Atlantic, and the Parent.

                

        

        

        
          

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                	I)	
                  “Fourth Amendment Effective Date” means July 22, 2020.

                

        

        
          

          

        

        
          	

                	J)	
                  “INDCO Dividend” means the dividend paid by Parent to INDCO in the amount of $342,000 on or about August 2019.

                

        

        
          

          

        

        
          	

                	K)	
                  “Warren Settlement Payment” means the one-time $200,000 payment made in connection with the settlement agreement dated on or about May 11, 2020 with Warren Communications
                    News, Inc.

                

        

        
          

          

        

        
          	

                	ii.	
                  The following definitions are hereby amended as follows:

                

        

        
          

          

        

        
          	

                	A)	
                  The definition of “Antibodies Guaranty” is hereby deleted in its entirety and the following substituted in its stead:

                

        

        
          

          

        

        
          “Antibodies Guaranty” means, collectively, (i) that certain Commercial Guaranty dated as of November 1, 2019
            pursuant to which Parent has guaranteed Indebtedness (as defined therein) of Antibodies to First Northern Bank of Dixon as evidenced by that certain Promissory Note of the same date in the principal amount of $500,000, (ii) that certain
            Commercial Guaranty dated as of November 18, 2019 pursuant to which Parent has guaranteed Indebtedness (as defined therein) of Antibodies to First Northern Bank of Dixon as evidenced by that certain Promissory Note of the same date in the
            principal amount of $2,235,000, (iii) that certain Commercial Guaranty dated as of November 18, 2019 pursuant to which Parent has guaranteed Indebtedness (as defined therein) of Antibodies to First Northern Bank of Dixon as evidenced by that
            certain Promissory Note of the same date in the principal amount of $125,400, and (iv) that certain Commercial Guaranty dated as of June 19, 2020 pursuant to which Parent has guaranteed Indebtedness (as defined therein) of Antibodies to First
            Northern Bank of Dixon as evidenced by that certain Promissory Note of the same date in the principal amount of $60,000; provided, however, that the aggregate outstanding principal amount of such guaranteed indebtedness shall
            not exceed $2,920,400 at any time.

        

        
          

          

        

        
          	

                	B)	
                  The definition of “EBITDA” is hereby amended by adding the following new subclauses in their correct alphabetical order:

                

        

        
          

          

        

        
          “plus (h) the Warren Settlement Payment to the extent that it was deducted from the calculation of Net Income, plus (i) the ACH Expense to the extent that it was deducted
            from the calculation of Net Income, plus (j) the INDCO Dividend to the extent that it was deducted from the calculation of Net Income.”

        

        
           

          	

                	b.	
                  Section 5.27 of the Agreement (Negative Covenants) is hereby amended as follows:

                

        

        

        
          

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                	i.	
                  Subclause (f) is hereby deleted in its entirety and the following substituted in its stead:

                

        

        
          

          

        

        
          “incur any Indebtedness other than (i) the Obligations, (ii) Permitted Indebtedness, (iii) Acquisition Seller Financing, and (iv) other Indebtedness which is unsecured
            and does not exceed $250,000 in the aggregate at any one time;”

        

        
          

          

        

        
          	

                	ii.	
                  Subclause (q) is hereby deleted in its entirety and the following substituted in its stead:

                

        

        
          

          

        

        
          “agree, consent, permit or otherwise undertake to amend or otherwise modify any of the terms or provisions of (i) any Loan Party Obligor’s Organic Documents, (ii) the
            Honor WW Acquisition Documentation relating to the Honor Earn-Out, (iii) Sea Cargo Acquisition Documentation relating to the Sea Cargo Earn-Out, (iv) the Onor Closing Note, or (v) the Atlantic Acquisition Documentation, except, in each
            instance, for such amendments or other modifications required by applicable law or that are not adverse to Lender, and then, only to the extent such amendments or other modifications are fully disclosed in writing to Lender no less than five
            (5) Business Days prior to being effectuated;”

        

        
           

          	

                	iii.	
                  Subclause (t) is hereby deleted in its entirety and the following substituted in its stead:

                

        

        
          

          

        

        
          “(t)      make any payment on account of the Honor Earn-Out, the Sea Cargo Earn-Out, the Onor Closing Note, or
              the Atlantic Deferred Purchase Price Payments, unless, in each instance, the Restricted Payment Conditions are satisfied.”

        

        
          

          

        

        
          	

                	c.	
                  The Disclosure Schedule is hereby amended and restated by the Disclosure Schedule attached hereto.

                

        

        
          

          

        

        
          	

                	d.	
                  The Schedule A attached to the Third Amendment is incorrect and was attached in error, and for avoidance of doubt that Schedule A is hereby deleted in its entirety and replaced with Schedule A attached hereto.

                

        

        
          

          

        

        
          	

                	e.	
                  Additional Representations, Warranties and Covenants Regarding Atlantic Acquisition.

                

        

        

        

        
          In addition to the representations, warranties and covenants set forth in Article 5 of the Agreement, the Loan Party Obligors make the following representations, warranties
            and covenants as of the Fourth Amendment Effective Date with respect to the Atlantic Acquisition, which representations, warranties and covenants are made on the terms and conditions set forth in the preamble paragraph of Article 5:

           

          

        

        
          

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           (i)          Loan Party Obligors have delivered to Lender a complete and correct copy of the Atlantic Acquisition Documents,
            including all schedules and exhibits thereto. The execution, delivery and performance of each of the Atlantic Acquisition Documents has been duly authorized by all necessary action on the part of Janel and the Parent. Each Atlantic Acquisition
            Document is the legal, valid and binding obligation of Janel and the Parent, enforceable against such Person in accordance with its terms, in each case, except (i) as may be limited by applicable bankruptcy, insolvency, reorganization,
            moratorium or other similar laws relating to or affecting generally the enforcement of creditors’ rights and (ii) the availability of the remedy of specific performance or injunctive or other equitable relief is subject to the discretion of the
            court before which any proceeding therefor may be brought. Neither Janel nor the Parent is in default in the performance or compliance with any provisions thereof. All representations and warranties made by Janel and Parent in the Atlantic
            Acquisition Documents and in the certificates delivered in connection therewith are true and correct in all material respects. To the knowledge of Janel and the Parent, none of the Seller’s representations or warranties in the Atlantic
            Acquisition Documents contain any untrue statement of a material fact or omit any fact necessary to make the statements therein not misleading, in any case that could reasonably be expected to result in a Material Adverse Effect.

        

        
          

          

        

        
          (ii)          No Default or Event of Default exists as of the Fourth Amendment Effective Date or would arise from the consummation
            of such Atlantic Acquisition;

        

        
          

          

        

        
          (iii)          The business acquired in connection with such Atlantic Acquisition is (A) located in the United States, (B)
            organized under the laws of any state of the United States or the District of Columbia, and (C) Atlantic is engaged in the business of non-asset based transportation logistics;

        

        
          

          

        

        
          (iv)          After giving effect to the Atlantic Acquisition and this Fourth Amendment, Janel will own, directly, 100% of the
            equity interests Atlantic and shall control all of the voting interests or shall otherwise control the governance of Atlantic, will have good title to the assets acquired pursuant to the Atlantic Acquisition Agreement, free and clear of all
            Liens other than Permitted Liens, and Lender shall have a first priority Lien in all of the assets of Atlantic, subject to Permitted Liens;

        

        
          

          

        

        
          (v)          Such Atlantic Acquisition has been approved by the board of directors of Atlantic and such board of directors has not
            announced that it will oppose such Atlantic Acquisition or has not commenced any action which alleges that such Atlantic Acquisition shall violate applicable law;

        

        
          

          

        

        
          (vi)          The Loan Party Obligors have furnished the Lender with historic financial statements of Atlantic, pro forma
            projected financial statements of Atlantic for 2020, and such other information as the Lender may reasonably require, all of which shall be reasonably satisfactory to the Agent.

        

        

        
          

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        (vii)          The Atlantic Acquisition has been consummated in all material respects, in accordance with all applicable laws and
          this Agreement and all requisite approvals by Governmental Authorities having jurisdiction over Janel, the Parent and Atlantic and, to Janel’s knowledge, the Seller, with respect to the Atlantic Acquisition, have been obtained (including filings
          or approvals required under the Hart-Scott-Rodino Antitrust Improvements Act), except for any approval the failure to obtain could not reasonably be expected to be material to the interests of the Lender.

        
          

          

        

        
          	3.	
                  Consents. The Loan Party Obligors have requested that the Lender provide the following consents related to the Atlantic Acquisition
                      (the “Consents”), and the Lender has agreed to provide such Consents, but only on the terms and conditions set forth herein:

                

        

        
          

          

        

        
          	

                	a.	
                  Pursuant to Section 5.27(f) of the Agreement, unless the Lender has given prior written consent, the Loan Party Obligors are prohibited from incurring any Indebtedness other than the Indebtedness described in said Section 5.27(f).
                    The Loan Parties have advised the Lender that Atlantic has incurred unsecured indebtedness from Citizens Bank, N.A. in the principal amount of $135,000 (hereinafter, the “CARES Indebtedness”) pursuant to Title I of the Coronavirus Aid,
                    Relief and Economic Security Act (hereinafter, as amended and in effect, and together with any regulations promulgated pursuant thereto, collectively the “CARES Act”), and such CARES Indebtedness shall survive the Atlantic Acquisition.
                    Accordingly, the Loan Party Obligors have requested that the Lender consent to such CARES Indebtedness. Upon the effectiveness of this Fourth Amendment, the Lender hereby consents to such CARES Indebtedness and such CARES Indebtedness
                    shall be added to the Disclosure Schedule. The consent to the foregoing is only in connection with such CARES Indebtedness, and shall not be deemed to constitute an agreement by the Lender to consent to the incurrence by any Loan Party
                    Obligor of any other Indebtedness in violation of Section 5.27(f) or waive the provisions of Section 5.27(f) (or any other provision of the Agreement) in the future. Further, Borrower:

                

        

        
          

          

        

        
          (i)          shall provide Lender, within in three (3) Business Days upon Lender’s request, a reasonably detailed written estimate of the amount of
            CARES Indebtedness that Borrower reasonably anticipate will be subject to forgiveness pursuant to the provisions of the CARES Act.

        

        
          

          

        

        
          (ii)          shall (x) maintain all records required to be submitted in connection with the forgiveness of the CARES Indebtedness, and (y) timely
            (and, in any event, not later than thirty (30) days (or such longer period as may be agreed by Lender) after the earliest date in which the Borrower may apply for forgiveness under the CARES Act) submit all applications and required
            documentation necessary or desirable for the Lender and/or the Small Business Administration to make a determination regarding the amount of the CARES Indebtedness that is eligible to be forgiven (the date of such determination hereinafter
            referred to as the “Forgiveness Date”).

        

        

        
          

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         (iii)          shall, promptly (and in any event within three (3) Business Days) upon Lender’s request, provide Lender with copies of all material
          documents, applications and correspondence with the applicable lender or any governmental authority relating to CARES Indebtedness, including with respect to loan forgiveness.

        
          

          

        

        
          (iv)          shall use the proceeds of the CARES Indebtedness solely for those purposes permitted by the CARES Act in order to maximize forgiveness
            of the CARES Indebtedness.

        

        
          

          

        

        
          (v)          On the Forgiveness Date, Borrower shall deliver to Lender a certificate of an authorized officer of Borrower certifying as to the
            amount of the CARES Indebtedness that will be forgiven pursuant to the provisions of the CARES Act, together with reasonably detailed description thereof, all in form satisfactory to Lender

        

        
          

          

        

        
          	

                	b.	
                  Pursuant to Section 5.27(h) of the Agreement, unless the Lender has given prior written consent, the Loan Party Obligors are prohibited from guarantying or otherwise becoming liable with respect to the obligations of another Person
                    other than as described in said Section 5.27(h). Pursuant to the Atlantic Acquisition Documents, the Parent will guaranty the payment of the Atlantic Deferred Purchase Price Payments which, absent the consent of the Lender, would be in
                    violation of Section 5.27(h) of the Agreement. The Loan Party Obligators have requested that the Lender consent to the Parent’s guaranty of the Atlantic Deferred Purchase Price Payments. Upon the effectiveness of this Fourth Amendment,
                    the Lender hereby consents to the guaranty of the Atlantic Deferred Purchase Price Payments by the Parent under the Atlantic Acquisition Documents. The consent to the foregoing is only in connection with the Atlantic Deferred Purchase
                    Price Payments, and shall not be deemed to constitute an agreement by the Lender to consent to any other action in violation of Section 5.27(h) or waive the provisions of Section 5.27(h) (or any other provision of the Agreement) in the
                    future.

                

        

        
          

          

        

        
          	4.	
                  Joinder and Assumption of Obligations. As of the Fourth Amendment Effective Date, the New Borrower hereby acknowledges that it has
                      received and reviewed a copy of the Agreement and the other Loan Documents, and hereby:

                

        

        
          

          

        

        
          	

                	a.	
                  joins in the execution of, and becomes a party to, the Agreement and the other Loan Documents as a Loan Party Obligor thereunder as indicated with its signature below;

                

        

        
          

          

        

        
          	

                	b.	
                  covenants and agrees to be bound by all covenants, agreements, liabilities and acknowledgments of a Loan Party Obligor under the Agreement and the other Loan Documents as of the date hereof (other than covenants, agreements,
                    liabilities and acknowledgments that relate solely to an earlier date), in each case, with the same force and effect as if such New Borrower was a signatory to the Agreement and the other Loan Documents and was expressly named as a Loan
                    Party Obligor therein;

                

        

        

        

        
          
            

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                  	c.	
                    makes all representations, warranties, and other statements of a Loan Party Obligor under the Agreement and the other Loan Documents, as of the date hereof (other than representations, warranties and other statements that relate
                      solely to an earlier date), in each case, with the same force and effect as if such New Borrower was a signatory to the Agreement and the other Loan Documents and was expressly named as a Loan Party Obligor therein;

                  

          

          
            

            

          

          
            	

                  	d.	
                    assumes and agrees to perform all applicable duties and Obligations of a Loan Party Obligor under the Agreement and the other Loan Documents; and

                  

          

          
            

            

          

          
            	

                  	e.	
                    without limiting the provisions of subparagraph (a) above, New Borrower hereby agrees as follows:

                  

          

          
            

            

          

          
            To secure the full payment and performance of all of the Obligations, New Borrower hereby assigns to Lender and grants to Lender a continuing security interest in all
              property of such New Borrower, whether tangible or intangible, real or personal, now or hereafter owned, existing, acquired or arising and wherever now or hereafter located, and whether or not eligible for lending purposes, including: (i) all
              Accounts (whether or not Eligible Accounts) and all Goods whose sale, lease or other disposition by such New Borrower has given rise to Accounts and have been returned to, or repossessed or stopped in transit by, such New Borrower; (ii) all
              Chattel Paper (including Electronic Chattel Paper), Instruments, Documents, and General Intangibles (including all patents, patent applications, trademarks, trademark applications, trade names, trade secrets, goodwill, copyrights, copyright
              applications, registrations, licenses, software, franchises, customer lists, tax refund claims, claims against carriers and shippers, guarantee claims, contracts rights, payment intangibles, security interests, security deposits and rights to
              indemnification); (iii) all Inventory; (iv) all Goods (other than Inventory), including Equipment, Farm Products, Health-Care-Insurance Receivables, vehicles, and Fixtures; (v) all Investment Property, including all rights, privileges,
              authority, and powers of such New Borrower as an owner or as a holder of Pledged Equity, including all economic rights, all control rights, authority and powers, and all status rights of such New Borrower as a member, equity holder or
              shareholder, as applicable, of each Issuer; (vi) all Deposit Accounts, bank accounts, deposits and cash; (vii) all Letter-of-Credit Rights; (viii) all Commercial Tort Claims; (ix) all Supporting Obligations; (x) any other property of such New
              Borrower now or hereafter in the possession, custody or control of Lender or any agent or any parent, Affiliate or Subsidiary of Lender or any Participant with Lender in the Loans, for any purpose (whether for safekeeping, deposit,
              collection, custody, pledge, transmission or otherwise); and (xi) all additions and accessions to, substitutions for, and replacements, products and Proceeds of the foregoing property, including proceeds of all insurance policies insuring the
              foregoing property, and all of such New Borrower’s books and records relating to any of the foregoing and to such New Borrower’s business.

          

           

          

          
            

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            	5.	
                    Acknowledgement of Merger of Certain Borrowers. The Loan Parties hereby warrant and represent to the Lender that on or about June
                        2020 (i) Honor WW merged with Janel (the “Honor WW Merger”), with the surviving company being Janel, as permitted by Section 5.27(a)(i) of the Agreement, (ii) such Honor WW
                        Merger has been completed in compliance with all applicable laws, and (iii) the Loan Parties have provided the Lender with true and complete copies of the documents evidencing such mergers, including such documents filed with the
                        applicable Governmental Authorities.

                  

          

          
            

            

          

          
            	6.	
                    Ratification of Loan Documents/Waiver. Except as provided for herein, all terms and conditions of the Agreement or the other Loan
                        Documents remain in full force and effect. Each Loan Party Obligor each hereby ratifies, confirms, and reaffirms all representations, warranties, and covenants contained therein and acknowledges and agrees that the Obligations, as
                        amended hereby, are and continue to be secured by the Collateral. Each Loan Party Obligor acknowledges and agrees that each such Loan Party Obligor does not have any offsets, defenses, or counterclaims against the Lender arising out
                        of the Agreement or the other Loan Documents, and to the extent that any such offsets, defenses, or counterclaims arising out of the Agreement or the other Loan Documents may exist, each such Loan Party Obligor hereby WAIVES and
                        RELEASES the Lender therefrom.

                  

          

          
            

            

          

          
            	7.	
                    Amendment Fee. In consideration of Lender’s agreement to enter into this Fourth Amendment, the Borrowers hereby acknowledge that
                        the Lender has earned an amendment fee in the amount of $4,000 (the “Amendment Fee”). The Amendment Fee shall be fully earned as of the Fourth Amendment Effective Date hereof and shall not be subject to refund or rebate under
                        any circumstances.

                  

          

          
            

            

          

          
            	8.	
                    Conditions to Effectiveness. This Fourth Amendment shall not be effective until each of the following conditions precedent have
                        been fulfilled to the satisfaction of the Lender:

                  

          

          
            

            

          

          
            	

                  	a.	
                    This Fourth Amendment shall have been duly executed and delivered by the respective parties hereto and, shall be in full force and effect and shall be in form and substance satisfactory to the Lender.

                  

          

          
            

            

          

          
            	

                  	b.	
                    New Borrower and the other Loan Party Obligors shall have executed and delivered such documents and agreements set forth on the Closing Checklist as required by Lender.

                  

          

          
            

            

          

          
            	

                  	c.	
                    The Borrower shall have paid to the Lender all other fees and expenses then due and owing pursuant to the Agreement and this Fourth Amendment.

                  

          

          
            

            

          

          
            	

                  	d.	
                    The Atlantic Acquisition shall occur contemporaneously with the execution and delivery of this Fourth Amendment.

                  

          

          
            

            

          

          
            	9.	
                    Conditions Subsequent to Effectiveness. The Loan Parties agree that, in addition to all other terms, conditions and provisions set
                        forth in this Agreement and the other Loan Documents, including, without limitation, those conditions set forth in Paragraph 8, the Loan Parties shall satisfy each of the conditions subsequent set forth below on or before the date
                        applicable thereto:

                  

          

          

          
            

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                  	a.	
                    Within 60 days after the Fourth Amendment Effective Date (or such longer period of time as may be agreed in writing by the Lender in its sole discretion), the Loan Parties shall either close or move to Santander Bank, N.A. the
                      following accounts:

                  

          

          

          

          
            	

                  	i.	
                    Citizens Bank Account No.

                  

          

          
            

            

          

          
            	

                  	ii.	
                    Citizens Bank Account No.

                  

          

          
            

            

          

          
            	

                  	iii.	
                    Citizens Bank Account No.

                  

          

          
            

            

          

          
            	

                  	b.	
                    Within 30 days of the Fourth Amendment Effective date (or such longer period of time as may be agreed in writing by the Lender in its sole discretion), the Loan Parties shall comply with the Insurance requirements as described in
                      Section 5.14, as such requirements pertain to Atlantic.

                  

          

          
            

            

          

          
            	

                  	c.	
                    Within 30 days after the Fourth Amendment Effective Date (or such longer period of time as may be agreed in writing by the Lender in its sole discretion), the Loan Parties shall use commercially reasonable efforts to deliver to the
                      Lender a duly executed landlord waiver, in form and substance reasonably satisfactory to the Lender, executed by each landlord with respect to each of the Leases at the Loan Parties leased locations as set forth below. For the
                      avoidance of doubt, failure to obtain such collateral access agreements shall not constitute an Event of Default.

                  

          

          
            

            

          

          
            	

                  	i.	
                    154 State Street, North Haven, CT 06473

                  

          

          
            

            

          

          
            	

                  	ii.	
                    Air Exchange Building, 334 Ella Grasso Turnpike, Windsor Locks, CT 06096

                  

          

          
            

            

          

          
            	10.	
                    Miscellaneous.

                  

          

          
            

            

          

          
            	

                  	a.	
                    This Fourth Amendment may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, and all of which together shall constitute one
                      instrument.

                  

          

          
            

            

          

          
            	

                  	b.	
                    The provisions of Section 10.15 (Governing Law) and 10.16 (Consent to Jurisdiction; Waiver of Jury Trial) are specifically incorporated herein by
                      reference.

                  

          

          
            

            

          

          
            	

                  	c.	
                    This Fourth Amendment expresses the entire understanding of the parties with respect to the transactions contemplated hereby. No prior negotiations or discussions shall limit, modify, or otherwise affect the provisions hereof.

                  

          

          
            

            

          

          
            	

                  	d.	
                    Any determination that any provision of this Fourth Amendment or any application hereof is invalid, illegal or unenforceable in any respect and in any instance shall not affect the validity, legality, or enforceability of such
                      provision in any other instance, or the validity, legality or enforceability of any other provisions of this Fourth Amendment.

                  

          

          

          
            

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                  	e.	
                    The Borrower shall pay on demand all costs and expenses of the Lender, including, without limitation, reasonable attorneys’ fees in connection with the preparation, negotiation, execution and delivery of this Fourth Amendment.

                  

          

          
            

            

          

          
            	

                  	f.	
                    The Loan Party Obligors each warrants and represents that such Person has consulted with independent legal counsel of such Person’s selection in connection with this Fourth Amendment and is not relying on any representations or
                      warranties of the Lender or its counsel in entering into this Fourth Amendment.

                  

          

          

          

          
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            - 11 -

            
              

            

          

          IN WITNESS WHEREOF, the parties have hereunto caused this Fourth Amendment to be executed and their seals to be hereto affixed as of the date first above
            written.

          
            

            

          

          	 	 	 	
                  LENDER

                
	 	 	 	
                  SANTANDER BANK, N.A.

                
	 	 	 	 	 
	 	 	 	
                  By:

                	
                  /s/ John Nuzzo

                
	 	 	 	 	 
	 	 	 	
                  Name:

                	
                  John P. Nuzzo

                
	 	 	 	
                  Its:

                	
                  SVP

                
	 	 	 	 	 
	 	
                  

                  

                	BORROWER 

                  	 
	 	 	 	 
	
                  Witnessed by:

                	 	 	
                  JANEL GROUP, INC., a New York corporation

                
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                  Print Name:

                	 	 	
                  By:

                	
                  /s/ Karen Kenney

                
	 	 	 	 	 
	 	 	 	
                  Name:

                	
                  Karen Kenney

                
	
                  Print Name:

                	 	 	
                  Its:

                	
                  President

                

          
            

            

          

        

        
          

          
            

          

        

        	

              	
                
                  LOAN PARTY OBLIGORS

                

              
	
                
                  Witnessed by:

                

              	

              
	

              	 	
                
                  JANEL CORPORATION, a Nevada corporation

                

              
	 	 	
                By:

              	
                
                  /s/ Dominique Schulte

                

              
	
                Print Name:

              	 	 	

              
	 	 	
                Name:

              	
                
                  Dominique Schulte Its: President

                

              
	
                Print Name:

              	 	 	 
	 	 
	
                Witnessed by:

              	
                ATLANTIC CUSTOMS BROKERS, INC., a Connecticut corporation, as the “New Borrower ”

              
	 	 	 
	
                Print Name:

              	
                By:

              	
                /s/ Karen Kenney

              
	 	
                Name:

              	
                Karen Kenney

              
	 	
                Its:

              	
                President

              
	 	 	 
	
                Print Na me:

              	 	 

        
          

          

        

        
          [Signature Page to Consent, Joinder, and Fourth Amendment to Loan and Security Agreement]

        

        
          

          
            

          

        

        
        Disclosure Schedule

        
           

          

          Section 1.

           

          

        

        
          	(a)	
                  Jurisdictions of Formation; Foreign Business Qualifications:

                

        

        
          

          

        

        	
                
                  LOAN PARTY

                

              	
                
                  JURISDICTION OF 

                  FORMATION

                

              	
                FOREIGN 
                  BUSINESS 

                  QUALIFICATIONS

                

              
	 	 	 
	 	 	 
	 	 	 

        
          

          

        

        
          	(b)	
                  Names:

                

        

        
          

          

        

        	
                
                  LOAN PARTY OBLIGOR LEGAL NAME

                

              	
                
                  PRIOR LEGAL NAMES

                

              	
                
                  EXISTING TRADE NAMES

                

              	
                
                  PRIOR TRADE NAMES

                

              
	 	 	 	 
	 	 	 	 

         

        

        
          

          Disclosure Schedule - 1

          
            

          

        

        
          	(c)	
                  Collateral Locations1:

                

        

        
          

          

        

        	
                
                  LOAN PARTY OBLIGOR

                

              	
                
                  COLLATERAL DESCRIPTION

                

              	
                
                  COLLATERAL LOCATION

                

                
                  OR PLACE OF BUSINESS 

                  (INCLUDING CHIEF EXECUTIVE 

                  OFFICE)

                

              	
                
                  OWNER/LESSOR (IF LEASED)

                

              
	 	 	 	 
	 	 	 	 

        
          

          

        

        
          	(d)	
                  Collateral in Possession of Lessor, Bailee, Consignee, or Warehouseman:

                

        

        
           

           
            

          1 Limit representation to chief executive office and offices where there is equipment valued in the aggregate at more than $25,000

        

        

        
          

          Disclosure Schedule - 2

          
            

          

        

        
          	(e)	
                  Litigation:

                

        

        
           

            
              	(f)	
                      Capitalization of Loan Parties:

                    

            

          

        

        
          

          

        

        	
                
                  Loan Party

                

              	
                Equity-holder

              	
                
                  Equity Description

                

              	
                
                  Percentage of 

                  Outstanding 

                  Equity Issued by 

                  Loan Party

                

              	
                
                  Certificate (Indicate No.)

                

              
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

        

        

        
          	(g)	
                  Other Investment Property

                

        

        
          

          

        

        
          	(h)	
                  Material Contracts

                

        

        
          
            
              

              

              
                
                  	
                          (i)

                        	
                          Employment Agreements

                        

                

                

              

            

          

        

        
          	(ii)	
                  Collective Bargaining:

                

        

        

        

        
          	(iii)	
                  Managerial or Consulting Agreements:

                

        

        
          

          

        

        
          	(iv)	
                  Agreement regarding assets or operations:

                

        

        
          

          

        

        
          	(v)	
                  Patent, Trademark, Copyright Licenses:

                

        

        
          

          

        

        
          	(vi)	
                  Distribution or Supply Agreements:

                

        

        
          

          

        

        
          	(vii)	
                  Customer agreements:

                

        

        
          

          

        

        
          	(viii)	
                  LLC Agreements:

                

        

        

        

        
          
            	(ix)	
                    Real Estate Leases:

                  

          

        

        

        

        
          
            	(x)	
                    Agreements which breach of such agreement could result in a Material Adverse Effect:

                  

          

        

        

        
          

          Disclosure Schedule - 3

          
            

          

        

        
        
          Section 2.          Commercial Tort Claims

        

        
          

          

        

        
          Section 3.          Deposit Accounts / Other accounts

        

        
          

          

        

        	
                
                  Loan Party Obligor

                

              	
                
                  Name of Financial Institution

                

              	
                
                  Account Number

                

                
                   

                  (* indicates account is approved for funding of loan proceeds)

                

              	
                
                  Purpose of 

                  Account

                

              	
                
                  Is the Account a “Restricted Account” as defined in

                

                
                  Schedule B (Yes or No?)

                

              
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

        
          

          

          
            
              Section 4.          Intellectual Property

            

          

          

          

          
            
              (a)          Patents and Patent Licenses:

            

          

          

          

          
            (b)          Trademarks and Trademark Licenses:

          

          

          

          
            (c)          Copyrights and Copyright Licenses:

          

        

        
          

          

        

        
          

          Disclosure Schedule - 4

          
            

          

        

        
          	5.	
                  Insurance

                

        

        
          

          

        

        	
                
                  Type of Insurance

                

              	
                
                  Issuer

                

              	
                
                  Insured Entities

                

              	
                
                  Deductible

                

              
	 	 	 	 
	 	 	 	 
	 	 	 	 

        
          

          

        

        
          Section 6.          Permitted Indebtedness

        

        
          

          

        

        
          •

        

        
          

          

        

        
          Section 7.          Permitted Liens

        

        

        
          

          Disclosure Schedule - 5

          
            

          

        

        Execution Version

        
          

          

        

        
          Schedule A 

           

          

          Description of Certain Terms

        

        
          

          

        

        
          
            	
                    
                      1.          Loan Limits for Revolving Loans and Letters of Credit:

                    

                  	 
	
                    
                      (a)

                    

                  	
                    Maximum Revolving Facility Amount: 

                  	
                    
                      $17,000,0001

                    

                  
	
                    
                      (b)

                    

                  	
                    Accounts Advance Rate: 

                  	
                    
                      85%

                    

                  
	
                    
                      (c)

                    

                  	
                    Foreign Accounts Sublimit: 

                  	
                    
                      $2,500,0002

                    

                  
	
                    
                      (d)

                    

                  	
                    Letter of Credit Limit: 

                  	
                    
                      $1,000,0003

                    

                  
	
                    
                      2.          Interest Rates:

                    

                  	 
	
                    
                      (a)

                    

                  	
                    Base Rate Loans: 

                  	
                    
                      Base Rate (for avoidance of doubt, the applicable margin is found in the definition of “Base Rate”).4

                    

                  
	
                    
                      (b)

                    

                  	
                    LIBOR Rate Loans: 

                  	
                    
                      LIBOR Rate plus LIBOR Rate Margin

                    

                  
	
                    
                      3.          Maximum Days re Eligible Accounts:

                    

                  	 
	
                    
                      (a)

                    

                  	
                    Maximum days: 

                  	
                    
                      More than ninety (90) days from invoice date and sixty (60) days from due date

                    

                     

                  
	 	 
	
                    
                      4.          Maturity Date:

                    

                  	
                    
                      October 17, 20225

                    

                  

          

           

        

        
          2619966.9

        

        
           

          
            

          

          1Deleted in its entirety and replaced per First Amendment; deleted and replaced per Second Amendment 

          2Deleted in its entirety and replaced per First Amendment; deleted and replaced per Second Amendment 

          3 Item number corrected from (e) to (d) and dollar amount deleted and replaced per Second Amendment 

          4 Deleted and replaced per Third Amendment

        

        
          5 Deleted and replaced per Third Amendment

        

        
          
            
              
                

                

              

            

            
               

              Schedule A – 1

            

          

          

          

          Disclosure Schedule - 6Exhibit 10.3

 

THIS
PROMISSORY NOTE (“NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”). THIS NOTE HAS BEEN ACQUIRED FOR INVESTMENT ONLY AND MAY NOT BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF REGISTRATION
OF THE RESALE THEREOF UNDER THE SECURITIES ACT OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY IN FORM, SCOPE AND SUBSTANCE TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.  

 

PROMISSORY NOTE

 

	Principal Amount:  Up to $300,000	
        Dated as of September
        30, 2020

        New York,
        New York

 

Progress
Acquisition Corp., a Delaware corporation and blank check company (the “Maker”), promises to pay to the
order of Progress Capital I, LLC or its registered assigns or successors in interest (the
“Payee”), or order, the principal sum of up to Three Hundred Thousand Dollars ($300,000) in lawful money of
the United States of America, on the terms and conditions described below.  All payments on this Note shall be made by
check or wire transfer of immediately available funds or as otherwise determined by the Maker to such account as the Payee may
from time to time designate by written notice in accordance with the provisions of this Note.

 

1. Principal. The
principal balance of this Note shall be payable by the Maker on the earlier of: (i) March 31, 2021 or (ii) the date on which Maker
consummates an initial public offering of its securities. The principal balance may be prepaid at any time. Under no circumstances
shall any individual, including but not limited to any officer, director, employee or shareholder of the Maker, be obligated personally
for any obligations or liabilities of the Maker hereunder.

 

2. Interest. No
interest shall accrue on the unpaid principal balance of this Note.

 

3. Drawdown
Requests. Maker and Payee agree that Maker may request up to Three Hundred Thousand Dollars ($300,000) for costs reasonably
related to Maker’s initial public offering of its securities. The principal of this Note may be drawn down from time to time
prior to the earlier of: (i) March 31, 2021 or (ii) the date on which Maker consummates an initial public offering of its securities,
upon written request from Maker to Payee (each, a “Drawdown Request”). Each Drawdown Request must state the
amount to be drawn down, and must not be an amount less than Ten Thousand Dollars ($10,000) unless agreed upon by Maker and Payee.
Payee shall fund each Drawdown Request no later than five (5) business days after receipt of a Drawdown Request; provided, however,
that the maximum amount of drawdowns collectively under this Note is Three Hundred Thousand Dollars ($300,000). Once an amount
is drawn down under this Note, it shall not be available for future Drawdown Requests even if prepaid. No fees, payments or other
amounts shall be due to Payee in connection with, or as a result of, any Drawdown Request by Maker. Notwithstanding the foregoing,
all payments shall be applied first to payment in full of any costs incurred in the collection of any sum due under this Note,
including (without limitation) reasonable attorneys’ fees, and then to the reduction of the unpaid principal balance of this
Note.

 

4. Application
of Payments. All payments shall be applied first to payment in full of any costs incurred in the collection of any sum
due under this Note, including (without limitation) reasonable attorney’s fees, then to the payment in full of any late charges
and finally to the reduction of the unpaid principal balance of this Note.

 

5. Events
of Default. The following shall constitute an event of default (“Event of Default”):

 

(a) Failure
to Make Required Payments. Failure by Maker to pay the principal amount due pursuant to this Note within five (5) business
days of the date specified above.

 

(b) Voluntary
Bankruptcy, Etc. The commencement by Maker of a voluntary case under any applicable bankruptcy, insolvency, reorganization,
rehabilitation or other similar law, or the consent by it to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator (or other similar official) of Maker or for any substantial part of its property, or
the making by it of any assignment for the benefit of creditors, or the failure of Maker generally to pay its debts as such debts
become due, or the taking of corporate action by Maker in furtherance of any of the foregoing.

 

     

     

    

 

(c) Involuntary
Bankruptcy, Etc. The entry of a decree or order for relief by a court having jurisdiction in the premises in respect of Maker
in an involuntary case under any applicable bankruptcy, insolvency or other similar law, or appointing a receiver, liquidator,
assignee, custodian, trustee, sequestrator (or similar official) of Maker or for any substantial part of its property, or ordering
the winding-up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period
of 60 consecutive days.

  

6. Remedies.

 

(a) Upon
the occurrence of an Event of Default specified in Section 5(a) hereof, Payee may, by written notice to Maker, declare this Note
to be due immediately and payable, whereupon the unpaid principal amount of this Note, and all other amounts payable hereunder,
shall become immediately due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby
expressly waived, anything contained herein or in the documents evidencing the same to the contrary notwithstanding. 

 

(b) Upon
the occurrence of an Event of Default specified in Sections 5(b) and 5(c), the unpaid principal balance of this Note, and all other
sums payable with regard to this Note, shall automatically and immediately become due and payable, in all cases without any action
on the part of Payee.

 

7. Waivers. Maker
and all endorsers and guarantors of, and sureties for, this Note waive presentment for payment, demand, notice of dishonor, protest,
and notice of protest with regard to the Note, all errors, defects and imperfections in any proceedings instituted by Payee under
the terms of this Note, and all benefits that might accrue to Maker by virtue of any present or future laws exempting any property,
real or personal, or any part of the proceeds arising from any sale of any such property, from attachment, levy or sale under execution,
or providing for any stay of execution, exemption from civil process, or extension of time for payment; and Maker agrees that any
real estate that may be levied upon pursuant to a judgment obtained by virtue hereof or any writ of execution issued hereon, may
be sold upon any such writ in whole or in part in any order desired by Payee.

 

8. Unconditional
Liability. Maker hereby waives all notices in connection with the delivery, acceptance, performance, default, or enforcement
of the payment of this Note, and agrees that its liability shall be unconditional, without regard to the liability of any other
party, and shall not be affected in any manner by any indulgence, extension of time, renewal, waiver or modification granted or
consented to by Payee, and consents to any and all extensions of time, renewals, waivers, or modifications that may be granted
by Payee with respect to the payment or other provisions of this Note, and agrees that additional makers, endorsers, guarantors,
or sureties may become parties hereto without notice to Maker or affecting Maker’s liability hereunder.

 

9. Notices. All
notices, statements or other documents which are required or contemplated by this Note shall be made in writing and delivered:
(i) personally or sent by first class registered or certified mail, overnight courier service or facsimile or electronic transmission
to the address designated in writing, (ii) by facsimile to the number most recently provided to such party or such other address
or fax number as may be designated in writing by such party or (iii) by electronic mail, to the electronic mail address most recently
provided to such party or such other electronic mail address as may be designated in writing by such party. Any notice or other
communication so transmitted shall be deemed to have been given on the day of delivery, if delivered personally, on the business
day following receipt of written confirmation, if sent by facsimile or electronic transmission, one (1) business day after delivery
to an overnight courier service or five (5) days after mailing if sent by mail.

 

10. Construction. THIS
NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF DELAWARE, WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF.

 

11. Severability. Any
provision contained in this Note which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

    2

     

    

 

12. Trust
Waiver.  Notwithstanding anything herein to the contrary, the Payee hereby waives any and all right, title, interest
or claim of any kind (“Claim”) in or to any distribution of or from the trust account to be established in which
the proceeds of the initial public offering (the “IPO”) to be conducted by the Maker (including the deferred
underwriters discounts and commissions) and the proceeds of the sale of the warrants to be issued in a private placement to occur
prior to the closing of the IPO are to be deposited, as described in greater detail in the registration statement and prospectus
to be filed with the Securities and Exchange Commission in connection with the IPO, and hereby agrees not to seek recourse, reimbursement,
payment or satisfaction for any Claim against the trust account for any reason whatsoever.

 

13. Amendment;
Waiver.  Any amendment hereto or waiver of any provision hereof may be made with, and only with, the written consent
of the Maker and the Payee.

 

14. Assignment.
No assignment or transfer of this Note or any rights or obligations hereunder may be made by any party hereto (by operation of
law or otherwise) without the prior written consent of the other party hereto and any attempted assignment without the required
consent shall be void.

 

[Signature page
follows]

 

    3

     

    

 

IN
WITNESS WHEREOF, Maker, intending to be legally bound hereby, has caused this Note to be duly executed by the undersigned as
of the day and year first above written.

 

	 	PROGRESS ACQUISITION CORP.
	 	 	 
	 	By:	 /s/ Richard Gallagher
	 	 	Name: Richard Gallagher
	 	 	Title:  Chief Financial Officer 

 

 

4

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