Document:

Exhibit 10.16

 

FIRST AMENDMENT TO SECURITIES PURCHASE AGREEMENT

 

This First Amendment
dated July 7, 2020 shall form a part of that certain Securities Purchase Agreement dated February 11, 2020 (the “Agreement”)
by and between BONNE SANTE GROUP, INC., a Delaware corporation (the “Buyer”), DOCTORS SCIENTIFIC ORGANICA
L.L.C., a Florida limited liability company (“DSO”), OYSTER MANAGEMENT SERVICES LTD, a Florida limited partnership
(“Oyster”), LAWEE ENTERPRISES L.L.C., a Florida limited liability company (“Lawee”), and
U.S. MEDICAL CARE HOLDINGS, L.L.C., a Florida limited liability company (“US Medical” and, together with DSO,
Oyster, and Lawee, the “Companies”), and Dr. Sasson E. Moulavi, an individual (“Seller”).

 

To the extent
that the terms of this First Amendment conflict with those contained in the Agreement, the terms of this First Amendment shall control.

 

The Seller, the
Companies, and the Buyer hereby agree to amend the Agreement to provide as follows:

 

I. The
Defined and Capitalized Terms in this First Amendment shall have the same meaning as ascribed to them in the Agreement, except as otherwise
provided herein.

 

2. Section
1.1 of the Agreement (“Certain Definitions” - “Adjusted EBIDTA”), shall be amended to read as follows:

 

“Adjusted
EBITDA” means, on a combined basis, the Companies’ earnings before (i) interest expense, (ii) tax expense, (iii)
depreciation and amortization expense, (iv) equity based compensation expense, (v) owner’s compensation of $120,000, (vi) non-essential
travel and entertainment, (vii) extraordinary one-time items, which may include personal cars and related expenses, monies paid to Epiderma,
LLC, a non-affiliated laser Companies which has no operations, merchandise which was shipped to Seller’s medical clinic at no charge
and adjusted in the cost of goods on the income statement as allowances, Hurricane Irma related expenses and Canadian tariff’s paid
for shipments to Costco, which are no longer in effect, and (viii) such other adjustment items as mutually agreed upon by the Buyer and
the Seller for the twelve (12) month period from April 1, 2019 through March 31, 2020”

 

3. Section
2.2(a)(i) of the Agreement (“Adjusted EBITDA Adjustment”) shall be amended to read as follows:

 

“Adjusted EBITDA Period

 

The Purchase Price is based
upon a six times multiple of estimated Adjusted EBITDA for the twelve (12) month period from April 1, 2019 through March 31, 2020 (“Adjusted
EBITDA Period”). The Buyer has engaged Eisner Amper to prepare a quality of earnings report on the Companies (the “Quality
of Earnings Report”). The Purchase Price shall be adjusted upwards or downwards upon delivery of the Quality of
Earnings Report to all parties based upon the difference between six times the Adjusted EBITDA for the Adjusted EBITDA Period, as
shown in the Quality of Earnings Report and the Purchase Price. The adjusted Purchase Price shall be allocated among the Cash
Portion and the Buyer Notes based on the percentage of the Purchase Price that each such component of consideration makes up as
described above in Section 2.1.” First Amendment to

 

First Amendment to

Securities Purchase Agreement

     

     

    

 

4. Section
4.5 of the Agreement (“Financial Statements”) shall be amended to read as follows:

 

“Section
4.5 of the Company Disclosure Schedule contains true and complete copies of (i)
the unaudited, combined balance sheet of the Companies for the two years ended December 31, 2019 and December 31, 2018 and the
interim period from January 1, 2020 through March 31, 2020; and (ii) the related unaudited statements of income, members’ or partners’
equity and cash flows for the two years ended December 31, 2019 and December 31, 20 I 8 and the interim period from January 1, 2020 through
March 31, 2020 (the “Financial Statements”). The Financial Statements have been prepared in accordance with GAAP applied
on a consistent basis throughout the periods involved (except as may be indicated in the notes thereto) and, on that basis, fairly present,
in all material respects, the financial condition, results of operations and cash flows of the Companies as of the indicated dates and
for the indicated periods.”

 

5. Section
8.1 (c) (under the Section 8 heading “Termination of Agreement”) shall be amended to read as follows:

 

“by either
the Buyer or the Seller if the Closing does not occur on or before July 31, 2020. The right to terminate the Agreement under this Section
8.1(c) may be extended by the Buyer until August 31, 2020 in the event that: (i) the Buyer has received a written loan commitment from
its lender prior to July 31, 2020; and (ii) the Buyer’s lender is unable to close the Buyer’s loan by July 31, 2020 but expects
to be able to close the Buyer’s loan on or before August 31, 2020. The right to terminate this Agreement under this Section 8.l(c)
will not be available to any party whose breach of any provision of this Agreement results in the failure of the Closing to occur by such
time.”

 

6. All
other terms and conditions contained within the Securities Purchase Agreement shall remain in full force and effect.

 

[SIGNATURES ON FOLLOWING PAGES]

 

First Amendment to

Securities Purchase Agreement

    2

     

    

 

IN WITNESS WHEREOF, the parties hereto
have caused this First Agreement to the Securities Purchase Agreement to be duly executed as of the date first above written.

 

	 	BUYER:
	 	 	 
	 	BONNE SANTÉ GROUP, INC.,
	 	a Delaware corporation
	 	 	 
	 	By:	/s/ Alfonso J. Cervantes
	 	Alfonso J. Cervantes, Executive Chairman
	 	 	 
	 	COMPANIES:
	 	 	 
	 	DOCTORS SCIENTIFIC ORGANICA L.L.C.,
	 	a Florida limited liability company
	 	 	 
	 	By:	/s/ Sasson E. Moulav
	 	Dr. Sasson E. Moulavi, CEO
	 	 	 
	 	OYSTER MANAGEMENT SERVICES LTD,
	 	a Florida limited partnership
	 	 	 
	 	By:	/s/ Sasson E. Moulav
	 	Dr. Sasson E. Moulavi, CEO
	 	 	 
	 	LAWEE ENTERPRISES L.L.C.,
	 	a Florida limited liability company
	 	 	 
	 	By:	/s/ Sasson E. Moulav
	 	Dr. Sasson E. Moulavi, CEO
	 	 	 
	 	U.S. MEDICAL CARE HOLDINGS, L.L.C.,
	 	a Florida limited liability company
	 	 	 
	 	By:	/s/ Sasson E. Moulav
	 	Dr. Sasson E. Moulavi, CEO
	 	 	 
	 	SELLER:
	 	 	 
	 	/s/ Sasson E. Moulav
	 	Dr. Sasson E. Moulavi, Individually

 

First Amendment to

Securities Purchase Agreement

3Exhibit 10.17

 

SECOND AMENDMENT TO SECURITIES PURCHASE AGREEMENT

 

This Second Amendment, dated
June 4, 2021(the “Second Amendment”), shall form a part of that certain Securities Purchase Agreement, dated February
11, 2020 (the “Purchase Agreement”), as amended by that certain First Amendment to Securities Purchase Agreement, dated
July 7, 2020 (the “First Amendment” and together with the Purchase Agreement, the “Agreement”),
among Bonne Santé Group, Inc., a Delaware corporation (the “Buyer”),
Doctors Scientific Organica L.L.C., a Florida limited liability company (“DSO”),
Oyster Management Services Ltd, a Florida limited partnership (“Oyster”),
Lawee Enterprises L.L.C., a Florida limited liability company (“Lawee”),
and U.S. Medical Care Holdings, L.L.C., a Florida limited liability company (“US
Medical” and, together with DSO, Oyster and Lawee, the “Companies”), and Dr. Sasson
E. Moulavi, an individual (“Seller”). The Buyer, the Companies and the Seller may each be referred to herein individually
as a “Party” or together as the “Parties.”

 

To the extent that
the term of this Second Amendment conflict with these contained in the Agreement, the terms of this Second Amendment shall control. Capitalized
terms not defined herein shall have the meanings assigned to them on the Purchase Agreement.

 

NOW, THEREFORE, in consideration
of the foregoing premises and the respective representations and warranties, covenants and agreements contained herein, the Parties agree
as follows:

 

1.
The definition of “Adjusted EBITDA” in Section 1.1 of the Agreement shall be deleted in its entirety.

 

2.
The definition of “Closing Working Capital” in Section 1.1 of the Agreement shall be amended to read as follows:

 

““Closing
Working Capital” means the difference, as of the Closing Date, between (a) the sum of Required Cash on Hand, accounts receivable,
inventory, capitalized work in process, prepaid expenses and other current assets of the Companies, which shall be reflected on the Closing
Date Balance Sheet, less (b) the accounts payable, customer deposits, sales taxes payable, and the current liabilities of the Companies
as reflected on the Closing Date Balance Sheet, in each case, determined in accordance with GAAP.”

 

3.
The definition of “Minimum Working Capital” in Section 1.1 of the Agreement shall be amended to read as follows:

 

““Minimum
Working Capital Requirement” means the average monthly working capital for the twelve-month period ended April 30, 2021, which
shall include the Required Cash on Hand, but shall not include the McKesson Claim as a part of the Accounts Payable.

 

     

     

    

 

4.
The definition of “Preliminary Working Capital” in Section 1.1 of the Agreement shall be amended to read as
follows:

 

“Preliminary
Working Capital means the difference, as of the Closing Date, between (a) the sum of Required Cash on Hand, accounts receivable, inventory,
capitalized work in process, prepaid expenses and other current assets of the Companies, which shall be reflected on the Closing Date
Balance Sheet, less (b) the accounts payable, customer deposits, sales taxes payable, and the current liabilities of the Companies as
reflected on the Preliminary Balance Sheet, in each case, determined in accordance with GAAP.”

 

 5. Section 1.1 of the Agreement shall be amended for the addition of the following definitions:

 

“Escrow
Agreement” means that certain escrow agreement, dated as of the Closing Date, among DSO, the Seller, the Buyer and the Escrow
Agent, in a form to be agreed among the Parties thereto.

 

“McKesson Claim” means
$103,873 relating to a claim by McKesson Specialty Care Distribution Corp.

 

“PPP Loan”
means that certain loan under the Paycheck Protection Program between US Century Bank and DSO, in the original principal amount of $356,438.72.

 

“Required
Cash On Hand” means $430,000 in Cash to remain in bank accounts maintained by the Companies at the time of Closing.

 

6.
Section 2.1 of the Agreement shall be amended to read as follows:

 

“Purchase
and Sale of the Securities. Upon the terms and subject to the conditions set forth in this Agreement, the Buyer agrees to pay to the
Seller for the Securities in the aggregate at the Closing Twelve Million Dollars ($12,000,000) (the “Purchase Price”),
subject to adjustment as described in Section 2.2 below, by delivery of (i) cash in the amount of Six Million Dollars ($6,000,000) (the
“Cash Portion”) payable by wire transfer or delivery of other immediately available funds to one or more accounts at
banks identified by Seller to Buyer in writing at least two (2) business days prior to the Closing Date, (ii) a convertible promissory
note (“Buyer Note I”) in a form to be mutually agreed to between the Buyer and the Seller in the aggregate principal
amount of Three Million Dollars ($3,000,000), and (iii) a non-convertible promissory note (“Buyer Note II,” and together
with Buyer Note I the “Buyer Notes”) in the form to be mutually agreed to in the aggregate principal amount of Three
Million Dollars ($3,000,000). The Buyer Notes will each bear interest at the rate of 6% per annum and will be amortized on a 60-month
straight line basis with a balloon payment on the 36th month. The Buyer Notes will be subordinated to the senior indebtedness
of the Buyer and the Companies and will have a subordinated security interest (after the senior secured indebtedness) covering all of
the assets of the Companies.”

 

    1

     

    

 

7.
Section 2.2(a) of the Agreement shall be deleted in its entirety and replaced with:

 

“[RESERVED]”.

 

8.
Section 2.2(c) of the Agreement shall be amended to read as follows:

 

“In the event
the Seller does not agree with the Closing Date Balance Sheet, the Seller shall so inform the Buyer in writing within 20 days of the Seller’s
receipt thereof, such writing to set forth the objections of the Seller in reasonable detail. If the Seller and the Buyer cannot reach
agreement as to any disputed matter regarding differences between the Preliminary Balance Sheet and the Closing Date Balance Sheet or
as to the calculation of working capital as shown thereon within 15 days after notification by the Seller to the Buyer of a dispute, they
shall forthwith refer the dispute to an Independent Accounting Firm mutually agreeable to the Seller and the Buyer for resolution, with
the understanding that such firm shall resolve all disputed items within 20 days after such disputed items are referred to it. If the
Buyer and the Seller are unable to agree on the choice of an Independent Accounting Firm, they shall select an Independent Accounting
Firm by lot from up to three firms proposed by each of the Seller and Buyer (after excluding their respective regular outside accounting
firms). Each of the Seller and the Buyer shall bear one-half of the costs of such accounting firm. The decision of the accounting firm
with respect to all disputed matters relating to the Preliminary Balance Sheet and the Closing Date Balance Sheet or as to the calculation
of working capital as shown thereon shall be deemed final and conclusive and shall be binding upon the Seller and the Buyer. In addition,
if the Seller does not object to within the 20-day period referred to above, the Closing Date Balance Sheet shall be deemed final and
conclusive and binding upon the Seller and the Buyer.”

 

 9. Section 2.2(d) of the Agreement shall be amended to read as follows:

 

“Adjustment
for Outstanding Indebtedness. The Cash Portion shall be decreased by the amount of any outstanding indebtedness of the Companies for
borrowed money existing as of the Closing Date and the deducted amount shall be utilized to pay off such outstanding indebtedness except
as set forth in Section 2.4 (c) below.”

 

10.
Section 2.4(c) is hereby added to the Agreement and shall read as follows:

 

“(c) At
the Closing, the Cash Portion shall be decreased by an amount equal to the outstanding balance of the PPP Loan as of the Closing Date
(the “Escrow Amount”), which will be delivered to US Century Bank (the “Escrow Agent”) for deposit
into an escrow account (the “Escrow Account”) to be established pursuant to the terms of the Escrow Agreement.”

 

11.
Section 4.5 of the Agreement shall be amended to read as follows:

 

“Financial
Statements. Section 4.5 of the Company Disclosure Schedule contains true and complete copies of (i) the unaudited, combined
balance sheet of the Companies for the two years ended December 31, 2020 and December 31, 2019 and the interim period from January 1,
2021 through March 31, 2021; and (ii) the related unaudited statements of income, members’ or partners’ equity and cash flows
for the two years ended December 31, 2020 and December 31, 2019 and the interim period from January 1, 2021 through March 31, 2021 (the
“Financial Statements”). The Financial Statements have been prepared in accordance with GAAP applied on a consistent
basis throughout the periods involved (except as may be indicated in the notes thereto) and, on that basis, fairly present, in all material
respects, the financial condition, results of operations and cash flows of the Companies as of the indicated dates and for the indicated
periods.”

 

    2

     

    

 

12.
Section 4.22 of the Agreement shall be amended to read as follows:

 

“Customers
and Suppliers. Section 4.22 of the Company Disclosure Schedule sets forth a correct and complete list of the top 20 customers
and top 20 suppliers of the Companies during the fiscal year ended December 31, 2020 and indicates with respect to each the name, address
and dollar volume of business with the Companies (including the primary categories, based on purchases or sales, of products or services
bought or sold). The Companies are not required to provide any material bonding or other financial security arrangements in connection
with their transactions with any customer or supplier required to be disclosed on Section 4.22 of the Company Disclosure Schedule
except as set forth therein. Since the date of the Financial Statements, no customer or supplier required to be disclosed on Section
4.22 of the Company Disclosure Schedule has terminated its relationship with, or materially reduced its purchases from or sales to,
the Companies.”

 

13.
Section 6.9 of the Agreement shall be amended to read as follows:

 

“Transfer
of Cash and Cash Equivalents. On or prior to the Closing, the Companies and Seller will transfer, or cause to be distributed all cash
and cash equivalents of the Companies to pay any fees owed by Companies to brokers or advisors (including termination fees under any advisory
agreement), any indebtedness for borrowed money and for such other purposes as determined by the Companies and Seller; provided, however,
that the Companies shall have an amount in cash in its corporate bank account and on hand at the Closing, which shall remain with the
Companies, that is equal to a minimum of $430,000 in the aggregate.”

 

14.
Section 6.13 is hereby added to the Agreement and shall read as follows:

 

“PPP Loan. 
The Company has applied for forgiveness of the PPP Loan in accordance with U.S. Small Business Administration (“SBA”)
Procedural Notice # 5000-20057. At the Closing, the Parties are delivering from the Cash Portion the Escrow Amount to Escrow Agent to
be held by Escrow Agent in accordance with the terms of this Section 6.13 and the Escrow Agreement. Within five (5) days following the
Closing Date, the Parties shall cooperate to cause the Companies to furnish the following information to Escrow Agent and the U.S. Small
Business Administration: (i) the identity of Buyer; (ii) the ownership percentage(s) of Buyer; (iii) the Tax ID/ EIN for any owner holding
20% or more of the Companies; and (iv) a copy or summary of terms of the Escrow Agreement. The Escrow Agent shall deliver from the Escrow
Amount to the Seller any outstanding balance under the PPP Loan that is forgiven by the SBA, and any remaining PPP Loan amounts that are
not forgiven by the SBA shall be paid to the SBA from the Escrow Amount in reduction of the PPP Loan.”

 

15.
Section 8.1(c) of the Agreement shall be amended to read as follows:

 

“by either
the Buyer or the Seller if the Closing does not occur on or before the date that that is forty-five (45) days after the date of this Agreement.
The right to terminate this Agreement under this Section 8.1(c) will not be available to any party whose breach of any provision of this
Agreement results in the failure of the Closing to occur by such time;”

 

16.
All other terms and conditioned contained within the Agreement shall remain in full force and effect.

 

17.
Counterparts. This Second Amendment may be executed in two (2) or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including
pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission
method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

 

    3

     

    

 

IN WITNESS WHEREOF, the Parties
hereto have caused this Second Amendment to be duly executed as of the date first above written.

 

	 	BUYER:
	 	 	 
	 	BONNE SANTÉ GROUP, INC.
	 	 	 
	 	By:	/s/ Alfonso
J. Cervantes 
	 	Name:	Alfonso J. Cervantes
	 	Title:	Executive Chairman
	 	 	 
	 	COMPANIES:
	 	 	 
	 	DOCTORS SCIENTIFIC ORGANICA L.L.C.
	 	 	 
	 	By:	/s/ Sasson E. Moulav 
	 	Name:	Dr. Sasson E. Moulavi
	 	Title:	CEO
	 	 	 
	 	OYSTER MANAGEMENT SERVICES LTD
	 	 	 
	 	By:	/s/ Sasson E. Moulav 
	 	Name:	Dr. Sasson E. Moulavi
	 	Title:	CEO
	 	 	 
	 	LAWEE ENTERPRISES L.L.C.
	 	 	 
	 	By:	/s/ Sasson E. Moulav 
	 	Name:	Dr. Sasson E. Moulavi
	 	Title:	 CEO
	 	 	 
	 	U.S. MEDICAL CARE HOLDINGS, L.L.C.
	 	 	 
	 	By:	/s/ Sasson E. Moulav 
	 	Name:	Dr. Sasson E. Moulavi
	 	Title:	CEO
	 	 	 
	 	SELLER:
	 	 	 
	 	DR. SASSON E. MOULAVI
	 	 	 
	 	/s/ Sasson E. Moulav

 

 

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