Document:

Exhibit 10.1

 

LIMITED WAIVER AND SIXTH AMENDMENT TO CREDIT AGREEMENT

 

THIS LIMITED WAIVER AND SIXTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of September 29, 2017, is by and among INVENTURE FOODS, INC., a Delaware corporation (the “Parent Borrower”), the Subsidiaries of the Parent Borrower identified on the signature pages hereof (such Subsidiaries, together with the Parent Borrower, are referred to herein each individually as a “Borrower” and individually and collectively, jointly and severally, as “Borrowers”), the lenders from time to time party to the Credit Agreement defined below (the “Lenders”) and BSP AGENCY, LLC, a Delaware limited liability company, in its capacity as agent for each member of the Lender Group (in such capacity, together with its successors and assigns in such capacity, the “Agent”).  Capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Credit Agreement.

 

W I T N E S S E T H

 

WHEREAS, the Borrowers, the Lenders and the Agent are parties to that certain Credit Agreement dated as of November 18, 2015 (as amended by that certain First Amendment to Credit Agreement dated as of March 9, 2016, as amended by that certain Second Amendment to Credit Agreement dated as of September 27, 2016, as amended by that certain Limited Waiver and Third Amendment to Credit Agreement dated as of May 10, 2017, as amended by that certain Limited Waiver and Fourth Amendment to Credit Agreement dated as of July 21, 2017, as amended by that certain Limited Waiver and Fifth Amendment dated as of August 31, 2017 and as may be further amended, modified, extended, restated, replaced, or supplemented from time to time, the “Credit Agreement”);

 

WHEREAS, certain Events of Default have occurred, are continuing or will result under the Credit Agreement as a result of: (a) the Parent Borrower’s and the other Loan Parties’ failure to comply with the financial statement covenant contained in Section 5.1 of the Credit Agreement because of a “going concern” qualification to the certification by the Parent Borrower’s auditor of the audited financial statements of the Parent Borrower and its Subsidiaries for the fiscal year ended December 31, 2016, which constitutes an Event of Default under Section 8.2(a) of the Credit Agreement (the “2016 Audit Covenant Event of Default”), (b) the Parent Borrower’s and the other Loan Parties’ failure to comply with the financial covenant contained in Section 7.3 of the Credit Agreement for the fiscal month ended April 30, 2017, which constitutes an Event of Default under Section 8.2(a) of the Credit Agreement (the “April EBITDA Event of Default”), (c) the Parent Borrower’s and the other Loan Parties’ failure to comply with the financial covenant contained in Section 7.3 of the Credit Agreement for the fiscal month ended June 30, 2017, which constitutes an Event of Default under Section 8.2(a) of the Credit Agreement (the “June EBITDA Event of Default”), (d) the Parent Borrower’s and the other Loan Parties’ failure to comply with the financial covenant contained in Section 7.3 of the Credit Agreement for the fiscal month ended July 31, 2017, which constitutes an Event of Default under Section 8.2(a) of the Credit Agreement (the “July EBITDA Event of Default”), (e) the Parent Borrower’s and the other Loan Parties’ failure to comply with the financial covenant contained in Section 7.3 of the Credit Agreement for the fiscal month ended August 31, 2017, which constitutes an Event of Default under Section 8.2(a) of the Credit Agreement (the “August EBITDA Event of Default” and collectively with the 2016 Audit Covenant Event of Default, the April EBITDA Event of Default, the June EBITDA Event of Default, the July EBITDA Event of Default and the August Event of Default, the “Current Events of Default”) and (f) the Parent Borrower’s and the other Loan Parties’ expected failure to comply with the financial covenants contained in Section 7 of the Credit Agreement from the date hereof through the Waiver Deadline (as defined below), which would constitute an Event of Default under Section 8.2(a) of the Credit Agreement (the “Anticipated Event of Default” and collectively with the Current Events of Default, the “Specified Events of Default”);

 

 

WHEREAS, the Borrowers, the Lenders and the Agent are parties to (a) that certain Limited Waiver dated as of March 29, 2017 whereby the Agent and the Lenders agreed to waive the 2016 Audit Covenant Event of Default until May 15, 2017, (b) that certain Limited Waiver and Third Amendment to Credit Agreement dated as of May 10, 2017 whereby the Agent and the Lenders agreed to (i) extend the 2016 Audit Covenant Event of Default waiver until July 17, 2017 and (ii) waive the April EBITDA Event of Default until July 17, 2017, (c) that certain Extension Agreement dated as of July 17, 2017 whereby the Agent and the Lenders agreed to (i) extend the 2016 Audit Covenant Event of Default waiver until July 24, 2017, (ii) extend the April EBITDA Event of Default waiver until July 24, 2017, (iii) waive the June EBITDA Event of Default until July 24, 2017 and (iv) waive the July EBITDA Event of Default until July 24, 2017, (d) that certain Limited Waiver and Fourth Amendment to Credit Agreement dated as of July 21, 2017 whereby the Agent and the Lenders agreed to (i) extend the 2016 Audit Covenant Event of Default waiver until August 31, 2017, (ii) extend the April EBITDA Event of Default waiver until August 31, 2017, (iii) extend the June EBITDA Event of Default waiver until August 31, 2017 and (iv) extend the July EBITDA Event of Default waiver until August 31, 2017 and (e) that certain Limited Waiver and Fifth Amendment to Credit Agreement dated as of August 31, 2017 whereby the Agent and the Lenders agreed to (i) extend the 2016 Audit Covenant Event of Default waiver until September 30, 2017 (the “2016 Audit Covenant Waiver Deadline”), (ii) extend the April EBITDA Event of Default waiver until September 30, 2017 (the “April EBITDA Waiver Deadline”), (iii) extend the June EBITDA Event of Default waiver until September 30, 2017 (the “June EBITDA Waiver Deadline”), (iv) extend the July EBITDA Event of Default waiver until September 30, 2017 (the “July EBITDA Waiver Deadline”) and (v) extend the August EBITDA Event of Default waiver until September 30, 2017 (the “August EBITDA Waiver Deadline”);

 

WHEREAS, the Borrowers have requested that the Agent and the Lenders (a) extend the 2016 Audit Covenant Waiver Deadline until October 31, 2017, (b) extend the April EBITDA Waiver Deadline until October 31, 2017, (c) extend the June EBITDA Waiver Deadline until October 31, 2017, (d) extend the July EBITDA Waiver Deadline until October 31, 2017, (e) extend the August EBITDA Waiver Deadline until October 31, 2017, (f) waive the Anticipated Event of Default until October 31, 2017, and (g) amend certain other provisions of the Credit Agreement; and

 

WHEREAS, the Agent and the Lenders are willing to (a) provide the extension of the 2016 Audit Covenant Waiver Deadline, (b) provide the extension of the April EBITDA Waiver Deadline, (c) provide the extension of the June EBITDA Waiver Deadline, (d) provide the extension of the July EBITDA Waiver Deadline, (e) provide the extension of the August EBITDA Waiver Deadline, (f) provide the waiver of the Anticipated Event of Default, and (g) make such amendments to the Credit Agreement in accordance with and subject to the terms and conditions set forth herein and in accordance with the applicable provisions of the Intercreditor Agreement.

 

NOW, THEREFORE, in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE I

LIMITED WAIVER

 

1.1                               Waiver of Specified Events of Default.  Notwithstanding the provisions of the Credit Agreement to the contrary, the Agent and the Lenders hereby agree to extend the 2016 Audit Covenant Waiver Deadline, extend the April EBITDA Waiver Deadline, extend the June EBITDA Waiver Deadline, extend the July EBITDA Waiver Deadline, extend the August EBITDA Waiver Deadline and waive the Anticipated Event of Default until the date (the “Waiver Deadline”) that is the earlier of (a) the occurrence and continuation of a Default or Event of Default other than any Specified Event of Default and (b) October 31, 2017.  On the date constituting the Waiver Deadline, the Specified Events of Default will be reinstated as if the waiver set forth above had never been provided and failure of the Parent Borrower to be in compliance therewith shall constitute an immediate Event of Default.

 

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1.2                               Effectiveness of Limited Waiver.  This limited waiver shall be effective only to the extent specifically set forth herein and shall not (a) be construed as a waiver of any breach, Default or Event of Default other than as specifically waived herein nor as a waiver of any breach, Default or Event of Default of which the Lenders have not been informed by the Borrowers, (b) affect the right of the Lenders to demand compliance by the Borrowers with all terms and conditions of the Loan Documents, except as specifically modified or waived by this Amendment, (c) be deemed a waiver of any transaction or future action on the part of the Borrowers requiring the Lenders’ consent or approval under the Loan Documents, or (d) except as waived hereby, be deemed or construed to be a waiver or release of, or a limitation upon, the Lenders’ exercise of any rights or remedies under the Credit Agreement or any other Loan Document, whether arising as a consequence of any Default or Event of Default (other than a Specified Event of Default) which may now exist or otherwise, all such rights and remedies hereby being expressly reserved.

 

ARTICLE II

AMENDMENTS TO CREDIT AGREEMENT

 

2.1                               Amendment to Section 7.3.  Section 7.3 is hereby amended and restated in its entirety to read as follows:

 

7.3                               Consolidated EBITDA.  Commencing with the fiscal month ending October 31, 2017, Borrowers will have EBITDA, measured at the end of each fiscal month for the twelve (12) months then ended, of at least $18,000,000.

 

2.2                               New Definitions.  The following definitions are hereby added to Schedule 1.1 to the Credit Agreement in the appropriate alphabetical order:

 

“Sixth Amendment Effective Date” shall mean September 29, 2017.

 

“Sixth Amendment Fee Letter” shall mean that certain fee letter dated as of the Sixth Amendment Effective Date, between the Borrower and Agent.

 

2.3                               Amendment to Definition of Loan Documents.  The definition of “Loan Documents” set forth in Schedule 1.1 to the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“Loan Documents” means the Agreement, the Control Agreements, the Copyright Security Agreement, the Fee Letter, the Sixth Amendment Fee Letter, the Guaranty and Security Agreement, the Intercompany Subordination Agreement, the Mortgages, the Patent Security Agreement, the Trademark Security Agreement, the Intercreditor Agreement, any note or notes executed by Borrowers in connection with the Agreement and payable to any member of the Lender Group, and any other instrument or agreement entered into, now or in the future, by any Borrower or any of its Subsidiaries and any member of the Lender Group in connection with the Agreement.

 

2.4                               Amendment to Schedule 5.1.  Schedule 5.1 to the Credit Agreement is hereby amended and restated in its entirety as set forth on Schedule 5.1 hereto.

 

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ARTICLE III

CONDITIONS TO EFFECTIVENESS

 

3.1                               Closing Conditions.  This Amendment shall become effective as of the day and year set forth above (the “Amendment Effective Date”) upon satisfaction of the following conditions (in each case, in form and substance reasonably acceptable to the Agent):

 

(a)                                 Executed Amendment.  The Agent shall have received a copy of this Amendment duly executed by each of the Loan Parties, the Required Lenders and the Agent.

 

(b)                                 Sixth Amendment Fee Letter.  The Agent shall have received a copy of an executed fee letter between the Borrower and the Agent, in form and substance satisfactory to the Agent.

 

(c)                                  Default.  After giving effect to this Amendment, no Default or Event of Default shall exist.

 

(d)                                 Representations and Warranties.  As of the Amendment Effective Date, the representations and warranties of the Loan Parties contained in the Credit Agreement and in the other Loan Documents shall be true, correct and complete in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that are qualified or modified by materiality in the text thereof).

 

(e)                                  Fees and Expenses.  The Agent shall have received from the Parent Borrower such other fees and expenses that are payable in connection with the consummation of the transactions contemplated hereby and King & Spalding LLP shall have received from the Parent Borrower payment of all outstanding fees and expenses previously incurred and all fees and expenses incurred in connection with this Amendment.

 

(f)                                   Miscellaneous.  All other documents and legal matters in connection with the transactions contemplated by this Amendment shall be reasonably satisfactory in form and substance to the Agent and its counsel.

 

ARTICLE IV
 MISCELLANEOUS

 

4.1                               Amended Terms.  On and after the Amendment Effective Date, all references to the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as amended by this Amendment.  Except as specifically amended hereby or otherwise agreed, the Credit Agreement is hereby ratified and confirmed and shall remain in full force and effect according to its terms.

 

4.2                               Representations and Warranties of the Loan Parties.  Each of the Loan Parties represents and warrants as follows:

 

(a)                                 It has taken all necessary action to authorize the execution, delivery and performance of this Amendment.

 

(b)                                 This Amendment has been duly executed and delivered by such Person and constitutes such Person’s legal, valid and binding obligation, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).

 

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(c)                                  No consent, approval, authorization or order of, or filing, registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Person of this Amendment.

 

(d)                                 After giving effect to this Amendment, the representations and warranties set forth in Article 4 of the Credit Agreement are true and correct as of the date hereof (except for those which expressly relate to an earlier date).

 

(e)                                  After giving effect to this Amendment, no event has occurred and is continuing which constitutes a Default or an Event of Default.

 

(f)                                   The Loan Documents continue to create a valid security interest in, and Lien upon, the Collateral, in favor of the Agent, for the benefit of the Lenders, which security interests and Liens are perfected in accordance with the terms of the Loan Documents and prior to all Liens other than Permitted Liens.

 

(g)                                  The Obligations are not reduced or modified by this Amendment and are not subject to any offsets, defenses or counterclaims.

 

4.3                               Reaffirmation of Obligations.  Each Loan Party hereby ratifies the Credit Agreement and acknowledges and reaffirms (a) that it is bound by all terms of the Credit Agreement applicable to it and (b) that it is responsible for the observance and full performance of its respective Obligations.

 

4.4                               Loan Document.  This Amendment shall constitute a Loan Document under the terms of the Credit Agreement.

 

4.5                               Expenses.  Each Borrower agrees to pay all reasonable costs and expenses of the Agent in connection with the preparation, execution and delivery of this Amendment, including without limitation the reasonable fees and expenses of the Agent’s legal counsel.

 

4.6                               Further Assurances.  The Loan Parties agree to promptly take such action, upon the request of the Agent, as is necessary to carry out the intent of this Amendment.

 

4.7                               Entirety.  This Amendment and the other Loan Documents embody the entire agreement among the parties hereto and supersede all prior agreements and understandings, oral or written, if any, relating to the subject matter hereof.

 

4.8                               Counterparts; Telecopy.  This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument.  Delivery of an executed counterpart to this Amendment by telecopy or other electronic means shall be effective as an original and shall constitute a representation that an original will be delivered.

 

4.9                               No Actions, Claims, Etc.  As of the date hereof, each of the Loan Parties hereby acknowledges and confirms that it has no knowledge of any actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in law or in equity, against the Agent, the Lenders, or the Agent’s or the Lenders’ respective officers, employees, representatives, agents, counsel or directors arising from any action by such Persons, or failure of such Persons to act under the Credit Agreement on or prior to the date hereof.

 

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4.10                        GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF, BUT INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

 

4.11                        Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

4.12                        General Release.  In consideration of the Agent’s and the Required Lenders’ willingness to enter into this Amendment, each Loan Party hereby releases and forever discharges the Agent, the Lenders and the Agent’s, and the Lender’s respective predecessors, successors, assigns, officers, managers, members, partners, equityholders, directors, employees, agents, attorneys, representatives, and affiliates (hereinafter all of the above collectively referred to as the “Bank Group”), from any and all claims, counterclaims, demands, damages, debts, suits, liabilities, actions and causes of action of any nature whatsoever, including, without limitation, all claims, demands, and causes of action for contribution and indemnity, whether arising at law or in equity, whether known or unknown, whether liability be direct or indirect, liquidated or unliquidated, whether absolute or contingent, foreseen or unforeseen, and whether or not heretofore asserted, which any Loan Party may have or claim to have against any of the Bank Group in any way related to or connected with the Loan Documents and the transactions contemplated thereby.

 

4.13                        Consent to Jurisdiction; Service of Process; Waiver of Jury Trial.  The jurisdiction, service of process and waiver of jury trial provisions set forth in Section 12 of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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IN WITNESS WHEREOF the parties hereto have caused this Amendment to be duly executed on the date first above written.

 

	
BORROWERS:
    	
INVENTURE FOODS, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s Steve Weinberger
    
	
 
    	
Name: Steve Weinberger
    
	
 
    	
Title: Chief Financial   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
RADER FARMS, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s Steve Weinberger
    
	
 
    	
Name: Steve Weinberger
    
	
 
    	
Title: Chief Financial   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
INVENTURE — GA, INC. f/k/a   FRESH FROZEN FOODS, INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s Steve Weinberger
    
	
 
    	
Name: Steve Weinberger
    
	
 
    	
Title: Chief Financial   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
WILLAMETTE VALLEY FRUIT COMPANY,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s Steve Weinberger
    
	
 
    	
Name: Steve Weinberger
    
	
 
    	
Title: Chief Financial   Officer
    

 

SIGNATURE PAGE TO

LIMITED WAIVER AND SIXTH AMENDMENT TO CREDIT AGREEMENT

 

 

	
 
    	
POORE BROTHERS-BLUFFTON, LLC,
    
	
 
    	
a Delaware limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s Steve Weinberger
    
	
 
    	
Name: Steve Weinberger
    
	
 
    	
Title: Chief Financial   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BOULDER NATURAL   FOODS, INC.,
    
	
 
    	
an Arizona corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s Steve Weinberger
    
	
 
    	
Name: Steve Weinberger
    
	
 
    	
Title: Chief Financial   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
TEJAS PB   DISTRIBUTING, INC.,
    
	
 
    	
an Arizona corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s Steve Weinberger
    
	
 
    	
Name: Steve Weinberger
    
	
 
    	
Title: Chief Financial   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LA COMETA PROPERTIES, INC.,
    
	
 
    	
an Arizona corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s Steve Weinberger
    
	
 
    	
Name: Steve Weinberger
    
	
 
    	
Title: Chief Financial   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BN FOODS, INC.,
    
	
 
    	
a Colorado corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s Steve Weinberger
    
	
 
    	
Name: Steve Weinberger
    
	
 
    	
Title: Chief Financial   Officer
    

 

SIGNATURE PAGE TO

LIMITED WAIVER AND SIXTH AMENDMENT TO CREDIT AGREEMENT

 

 

	
AGENT AND LENDERS:
    	
BSP   AGENCY, LLC, a Delaware limited liability company, as Agent
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Bryan Martoken
    
	
 
    	
Name: Bryan Martoken
    
	
 
    	
Title: Chief Financial   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PROVIDENCE DEBT FUND III LP,
    
	
 
    	
as a Lender
    
	
 
    	
 
    
	
 
    	
By: Providence Debt   Fund III GP L.P., its general partner
    
	
 
    	
 
    
	
 
    	
By: Providence Debt   Fund III Ultimate GP Ltd., its general partner
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Bryan Martoken
    
	
 
    	
Name: Bryan Martoken
    
	
 
    	
Title: Chief Financial   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PROVIDENCE DEBT FUND III MASTER   (NON-US) LP, as a Lender
    
	
 
    	
 
    
	
 
    	
By: Providence Debt   Fund III GP L.P., its general partner
    
	
 
    	
 
    
	
 
    	
By: Providence Debt   Fund III Ultimate GP Ltd., its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Bryan Martoken
    
	
 
    	
Name: Bryan Martoken
    
	
 
    	
Title: Chief Financial   Officer
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LANDMARK WALL SMA L.P.,   as a Lender
    
	
 
    	
 
    
	
 
    	
By: Landmark Wall SMA   GP L.P., its general partner
    
	
 
    	
 
    
	
 
    	
By: Landmark Wall SMA   GP, LLC, its general partner
    
	
 
    	
 
    
	
 
    	
By: Landmark Equity   Advisors, L.L.C., its managing member
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Bryan Martoken
    
	
 
    	
Name: Bryan Martoken
    
	
 
    	
Title: Chief Financial   Officer
    

 

SIGNATURE PAGE TO

LIMITED WAIVER AND SIXTH AMENDMENT TO CREDIT AGREEMENT

 

 

	
 
    	
BENEFIT STREET PARTNERS SMA-C   LP, as a Lender
    
	
 
    	
 
    
	
 
    	
By: Benefit Street   Partners L.L.C., its investment advisor
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bryan Martoken
    
	
 
    	
Name: Bryan Martoken
    
	
 
    	
Title: Chief Financial   Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
BENEFIT STREET PARTNERS CAPITAL   OPPORTUNITY FUND LP, as a Lender
    
	
 
    	
 
    
	
 
    	
By: Benefit Street   Partners Capital Opportunity Fund GP L.P., its general partner
    
	
 
    	
 
    
	
 
    	
By: Benefit Street   Partners Capital Opportunity Fund Ultimate GP LLC, its general partner
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Bryan Martoken
    
	
 
    	
Name: Bryan Martoken
    
	
 
    	
Title: Chief Financial   Officer
    

 

SIGNATURE PAGE TO

LIMITED WAIVER AND SIXTH AMENDMENT TO CREDIT AGREEMENT

 

 

Schedule 5.1

 

Financial Statements, Reports, Certificates

 

Deliver to Agent (and if so requested by Agent, with copies for each Lender) each of the financial statements, reports, or other items set forth below at the following times in form satisfactory to Agent:

 

	
if an Event of Default   has occurred and is continuing and in any event, commencing with the fiscal   month ending October 31, 2017, as soon as available, but in any event   within 15 days after the end of each month during each of Borrower’s fiscal   years,
    	
 
    	
an unaudited consolidated and consolidating balance   sheet, income statement, statement of cash flow and statement of   shareholder’s equity covering Parent Borrower’s and its Subsidiaries’   operations during such period and compared to the prior period and plan,   together with a corresponding discussion and analysis of results from   management,

 

(a)                                 a Compliance   Certificate along with the underlying calculations, including the   calculations to arrive at EBITDA,

 

(b)                                 to the extent   applicable, a calculation of the Fixed Charge Coverage Ratio and the Total   Leverage Ratio that is required to be delivered under the Agreement, and

 

(c)                                  any compliance   certificate delivered under the ABL Credit Agreement.
    
	
 
    	
 
    	
 
    
	
as soon as available, but in any event within 45   days after the end of each quarter during each of Parent Borrower’s fiscal   years,
    	
 
    	
an unaudited consolidated and consolidating balance   sheet, income statement, statement of cash flow and statement of   shareholder’s equity covering Parent Borrower’s and its Subsidiaries’   operations during such period and compared to the prior period and plan,   prepared in accordance with GAAP as well as on an internally-determined   “mark-to-market” basis, together with a corresponding discussion and analysis   of results from management,

 

(a)                                 a Compliance   Certificate along with the underlying calculations, including the   calculations to arrive at EBITDA to the extent applicable,

 

(b)                                 a calculation of the   Fixed Charge Coverage Ratio and Total Leverage Ratio that is required to be   delivered under the Agreement,

 

(c)                                  a certification of   compliance with all applicable United States Department of Agriculture and   the Food and Drug Administration rules and policies and rules and   policies of any other Governmental Authority relating to Food Security Laws,   including, if requested by Agent, a third-party expert certification audit or   Food and Drug Administration inspection of the Loan Parties quality system,   and

(d)                                 any compliance   certificate delivered under the ABL Credit Agreement.
    

 

 

	
as soon as available, but in any event within 90   days after the end of each of Parent Borrower’s fiscal years,
    	
 
    	
(a)                                 consolidated and   consolidating financial statements of Parent Borrower and its Subsidiaries   for each such fiscal year, audited by independent certified public   accountants reasonably acceptable to Agent and certified, without any   qualifications (including any (A) “going concern” or like qualification   or exception, (B) qualification or exception as to the scope of such   audit, or (C) qualification which relates to the treatment or   classification of any item and which, as a condition to the removal of such   qualification, would require an adjustment to such item, the effect of which   would be to cause any noncompliance with Article 7 of the   Agreement (other than any qualification or exception attributable solely to   the occurrence of the stated maturity of any Revolving Loans   within 12 months after the date of such opinion)), by such   accountants to have been prepared in accordance with GAAP (such audited   financial statements to include a balance sheet, income statement, statement   of cash flow, and statement of shareholder’s equity, and, if prepared, such   accountants’ letter to management), as well as on an internally-determined   “mark-to-market” basis,

 

(b)                                 a Compliance   Certificate along with the underlying calculations, including the   calculations to arrive at EBITDA to the extent applicable,

 

(c)                                  a calculation of   the Fixed Charge Coverage Ratio and Total Leverage Ratio that is required to   be delivered under the Agreement, and

 

(d)                                 any compliance   certificate delivered under the ABL Credit Agreement.
    
	
 
    	
 
    	
 
    
	
as soon as available, but in any event within 15   days after the start of each of Parent Borrower’s fiscal years,
    	
 
    	
(e)                                  copies of Parent   Borrower’s Projections, in form and substance (including as to scope and   underlying assumptions) satisfactory to Agent, exercising reasonable (from   the perspective of a secured term-based lender) business judgment, for the   forthcoming 3 years, certified by the chief financial officer of Parent   Borrower as being such officer’s good faith estimate of the financial   performance of Parent Borrower during the period covered thereby.
    
	
 
    	
 
    	
 
    
	
if and when filed by Parent Borrower,
    	
 
    	
(f)                                   Form 10-Q   quarterly reports, Form 10-K annual reports, and Form 8-K current   reports (if any when requested by Agent),

 

(g)                                  any other filings   made by Parent Borrower with the SEC, and

 

(h)                                 any other   information that is provided by Parent Borrower to its shareholders   generally.
    
	
 
    	
 
    	
 
    
	
promptly, but in any event within 5 days after any   Loan Party has knowledge of any event or condition that constitutes a Default   or an Event of Default,
    	
 
    	
(i)                                     notice of such   event or condition and a statement of the curative action that the Borrowers   propose to take with respect thereto.
    

 

 

	
promptly after the commencement thereof, but in any   event within 5 days after the service of process with respect thereto on   Parent Borrower or any of its Subsidiaries,
    	
 
    	
(j)                                    notice of all   actions, suits, or proceedings brought by or against Parent Borrower or any   of its Subsidiaries before any Governmental Authority which reasonably could   be expected to result in a Material Adverse Effect.
    
	
 
    	
 
    	
 
    
	
upon the request of Agent,
    	
 
    	
(a)                                 any other   information reasonably requested relating to the financial condition of   Parent Borrower or its Subsidiaries.Exhibit 10.1

 

 

CONSOLIDATED PROMISSORY NOTE

By and Between

Bingham Canyon Corporation

and

Francis J.
Read

	BORROWER:	Bingham Canyon Corporation
	 	4235 Commerce Street
	 	Little River, SC 29566
	 	 
	LENDER:	Francis J. Read
	 	9600 SW 67th Path
	 	Lake Butler, FL 32054

 

	PRINCIPAL AMOUNT: 	$275,000 USD – Consolidated
Total of All Loans
		1.	Loan of June 13, 2016 - $25,000 ($0 balance due to incorporate into this note) by and between Francis J. Read and Bingham Canyon
Corporation’s wholly-owned operating subsidiary, Paradigm Convergence Technologies Corp.
	 	2.	Loan of August 25, 2017 - $50,000
	 	3.	Loan of August 31,2017 - $200,000

 

1. For value received, the Borrower promises
to pay to the Lender at the above written address OR such address as may be provided in writing to the Borrower, the principal
sum of $275,000 USD (the total consolidated loan amount), with interest payable on the unpaid principal at the rate of 7.5% per
annum, calculated yearly and paid quarterly or at the end of the loan term (in the sole discretion of the Borrower), on October
1, 2018.

2. This note will be repaid in full on or before
October 1, 2018.

3. At any time while not in default under this
Note, the Borrower may pay the outstanding balance then owing under this Note to the Lender without penalty or further bonus.

4. Notwithstanding anything to the contrary
in the Note, if the Borrower defaults in the performance of any obligation under this Note, then the Lender may declare the
principal amount owing and interest due under this Note at that time to be immediately due and payable.

5. This Consolidated Promissory
Note is collateralized by the Borrower’s asset: the June 13, 2017 US Patent No. 9,679,170 B2, entitled “Material Tracking
System,” which exists in the Borrower’s name as an issued and active United States Patent. Should the Borrower default
on the terms included in this Promissory Note, then the Lender shall have the right to require the Borrower to assign this patent
to the Lender or its designee. It is expressly stated that this patent has no additional encumbrance(s) and shall have no additional
encumbrance(s) other than serving as collateral for this Promissory Note for the period of time through October 1, 2018.

6. All costs, expenses
and expenditures including, and without limitation, the complete legal costs incurred by the Lender in enforcing this Note
as a result of any default by the Borrower, will be added to the principal then outstanding and will immediately be paid by
the Borrower.

7. If any term, covenant,
condition or provision of this Note is held by a court of competent jurisdiction to be invalid, void or unenforceable, it
is the parties' intent that such provision be reduced in scope by the court only to the extent deemed necessary by that court
to render the provision reasonable and enforceable and the remainder of the provisions of this Note will in no way be
affected, impaired or invalidated as a result.

8. This Note will be construed
with and governed by the laws of the State of South Carolina.

9. This note will inure to the benefit of and be binding upon the
respective heirs, executors, administrators, successors and assigns of the Borrower and the Lender. The Borrower waives the
presentment for payment, notice of non-payment, protest and notice to protest.

 

IN WITNESS WHEREOF the parties have duly affixed their
signatures under the below SEAL:

Bingham Canyon Corporation

as the

BORROWER:

 

	/s/ Gary J. Grieco	 	9/29/2017
	Gary J. Grieco, President and CEO	 	Date
	Authorized Signatory Official	 	 

 

The Individual Francis J. Read as the

LENDER:

 

 

 

	/s/ Francis J. Read	 	9/27/2017
	Francis J. Read	 	Date

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