Document:

EXHIBIT 10.2

 

THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR
UNDER THE SECURITIES LAWS OF CERTAIN STATES. THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY
NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION
OR EXEMPTION THEREFROM. LENDERS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN
INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY
TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES
LAWS.

 

CROSSOVER
CAPITAL FUND I, LLC

COLLATERALIZED
SECURED PROMISSORY NOTE

 

	$65,000.00	Seattle,
    WA 
	 	June
    17, 2016

 

1.
Principal and Interest

 

FOR
VALUE RECEIVED, Crossover Capital Fund I, LLC (the “Company”) hereby absolutely and unconditionally promises to pay
to PositiveID Corp. (the “Lender”), or order, the principal amount of Sixty Five Thousand Dollars ($65,000.00) no
later than December 17, 2016, unless the Lender does not meet the “current information requirements” required under
Rule 144 of the Securities Act of 1933, as amended, in which case the Company may declare the offsetting note issued by the Lender
on the same date herewith to be in Default (as defined in that note) and cross cancel its payment obligations under this Note
as well as the Lenders payment obligations under the offsetting note. This Full Recourse Note shall bear simple interest at the
rate of 10%.

 

2.Repayments
and Prepayments; Security.

 

a.All
principal under this Note shall be due and payable no later than December 17, 2016, unless the Lender does not meet the “current
information requirements” required under Rule 144 of the Securities Act of 1933, as amended, in which case the Company may
declare the offsetting note issued by the Lender on the same date herewith to be in Default (as defined in that note) and cross
cancel its payment obligations under this Note as well as the Lenders payment obligations under the offsetting note.

 

b.The
Company may pay this Note at any time. This note may not be assigned by the Lender, except by operation of law.

 

    	 	1	 

    	 	 	 

    

 

c.This
Note shall initially be secured by the pledge of the $71,500.00 10% convertible promissory note issued to the Company by the Lender
on even date herewith (the “Lender Note”). The Company may exchange this collateral for other collateral with an
appraised value of at least $65,000.00, by providing 3 days prior written notice to the Lender. If the Lender does not
object to the substitution of collateral in that 3 day period, such substitution of collateral shall be deemed to have been accepted
by the Lender. Notwithstanding the foregoing, an exchange of collateral for $65,000.00 in cash shall not require the approval
of the Lender. Any collateral exchange shall not constitute a waiver of any defaults under a Lender note. All collateral
shall be retained by New Venture Attorneys, P.C., which shall act as the escrow agent for the collateral for the benefit of the
Lender. The Company may not effect any conversions under the Lender Note until it has made full cash payment for the portion of
the Lender Note being converted.

 

3.Events
of Default; Acceleration.

 

a.The
principal amount of this Note is subject to prepayment in whole or in part upon the occurrence and during the continuance of any
of the following events (each, an “Event of Default”): the initiation of any bankruptcy, insolvency, moratorium, receivership
or reorganization by or against the Company, or a general assignment of assets by the Company for the benefit of creditors. Upon
the occurrence of any Event of Default, the entire unpaid principal balance of this Note and all of the unpaid interest accrued
thereon shall be immediately due and payable. The Company may offset amounts due to the Lender under this Note by similar amounts
that may be due to the Company by the Lender resulting from breaches under the Lender Note.

 

b.No
remedy herein conferred upon the Lender is intended to be exclusive of any other remedy and each and every remedy shall be cumulative
and in addition to every other remedy hereunder, now or hereafter existing at law or in equity or otherwise. The Company accepts
and agrees that this Note is a full recourse note and that the Holder may exercise any and all remedies available to it under
law.

 

4.Notices.

 

a.
All notices, reports and other communications required or permitted hereunder shall be in writing and may be delivered in person,
by telecopy with written confirmation, overnight delivery service or U.S. mail, in which event it may be mailed by first-class,
certified or registered, postage prepaid, addressed (i) if to a Lender, at such Lender’s address as the Lender shall have
furnished the Company in writing and (ii) if to the Company at such address as the Company shall have furnished the Lender(s)
in writing.

 

b.Each
such notice, report or other communication shall for all purposes under this Note be treated as effective or having been given
when delivered if delivered personally or, if sent by mail, at the earlier of its receipt or 72 hours after the same has been
deposited in a regularly maintained receptacle for the deposit of the United States mail, addressed and mailed as aforesaid, or,
if sent by electronic communication with confirmation, upon the delivery of electronic communication.

 

    	 	2	 

    	 	 	 

    

  

5.Miscellaneous.

 

a.
Neither this Note nor any provisions hereof may be changed, waived, discharged or terminated orally, but only by a signed statement
in writing.

 

b.No
failure or delay by the Lender to exercise any right hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege preclude any other right, power or privilege. The provisions of this Note are severable
and if any one provision hereof shall be held invalid or unenforceable in whole or in part in any jurisdiction, such invalidity
or unenforceability shall affect only such provision in such jurisdiction. This Note expresses the entire understanding of the
parties with respect to the transactions contemplated hereby. The Company and every endorser and guarantor of this Note regardless
of the time, order or place of signing hereby waives presentment, demand, protest and notice of every kind, and assents to any
extension or postponement of the time for payment or any other indulgence, to any substitution, exchange or release of collateral,
and to the addition or release of any other party or person primarily or secondarily liable.

 

c.If
Lender retains an attorney for collection of this Note, or if any suit or proceeding is brought for the recovery of all, or any
part of, or for protection of the indebtedness respected by this Note, then the Company agrees to pay all costs and expenses of
the suit or proceeding, or any appeal thereof, incurred by the Lender, including without limitation, reasonable attorneys’
fees.

 

d.This
Note shall for all purposes be governed by, and construed in accordance with the laws of the State of New York (without reference
to conflict of laws).

 

e.This
Note shall be binding upon the Company’s successors and assigns, and shall inure to the benefit of the Lender’s successors
and assigns.

 

    	 	3	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, the Company has caused this Note to be executed by its duly authorized officer to take effect as of the date
first hereinabove written.

 

	 	CROSSOVER
    CAPITAL FUND I, LLC
	 	 	 
	 	By:	 
	 	Title:	 
	 	 	 
	 	APPROVED:
	 	 	 
	 	POSITIVEID
    CORP.
	 	 	 
	 	By:	 
	 	Title:	 

 

    	 	4THIRD
AMENDMENT TO CREDIT AND SECURITY AGREEMENT

 

This
Third Amendment to Credit and Security Agreement (this “Amendment”) is made effective as of June 20, 2016,
by and among MB FINANCIAL BANK, N.A., successor in interest to Cole Taylor Bank (“Lender”), MENDOCINO BREWING
COMPANY, INC., a California corporation (“MBC”), and RELETA BREWING COMPANY LLC, a Delaware limited liability
company (“RBC”; RBC and MBC are collectively referred to as “Borrowers” and, individually,
as a “Borrower”).

 

PRELIMINARY
STATEMENTS

 

A.Borrowers
and Lender have entered into that certain Credit and Security Agreement dated as of June 23, 2011 (as amended, restated, or otherwise
modified from time to time, the “Credit Agreement”).

 

B.As
of the date hereof, Events of Default under Section 13.01(b) of the Credit Agreement are continuing, including, without limitation,
the failure to comply with the Tangible Net Worth covenant contained in Section 12.01 of the Credit Agreement and the failure
to comply with the Fixed Charge Coverage covenant contained in Section 12.02 of the Credit Agreement, each as of the period ending
April 30, 2016 and the dates set forth in the Second Amendment to Credit and Security Agreement dated as of June 21, 2015 (collectively,
the “Existing Defaults”).

 

C.Borrowers
have advised the Lender that Borrowers are unable to pay the Obligations by the current Maturity Date and have requested that
Lender amend the Credit Agreement to extend the Maturity Date. Borrowers acknowledge that the failure to pay the Obligations in
full by the Maturity Date is an Event of Default. Lender has therefore agreed to amend the Credit Agreement to extend the Maturity
Date to no later than July 23, 2016 on the terms and conditions set forth below.

 

NOW
THEREFORE, in consideration of the foregoing and such other consideration as the parties mutually agree, the parties hereto
agree as follows:

 

1.Preliminary
Statements. The preliminary statements set forth above are accurate, represent the intent of the parties hereto and are incorporated
herein by reference. Unless otherwise defined in this Amendment, capitalized terms used herein will have the same meaning in this
Amendment as set forth in the Credit Agreement.

 

2.Amendments
to Credit Agreement.

 

(a)Definition
of “Maturity Date” in Section 1.01 of the Credit Agreement is hereby deleted in its entirety and replaced with the
following:

 

“Maturity
Date” means July 23, 2016.

 

(b)The
definition of “Maximum Revolving Loan Limit” in Section 1.01 of the Credit Agreement is hereby deleted in its entirety
and replaced with the following:

 

’“Maximum
Revolving Loan Limit’ means $1,250,000.”

 

3.Reservation
of Rights; No Waiver. As a result of the Existing Defaults, Lender is permitted to exercise its default rights and remedies
as provided in the Credit Agreement without further notice or demand. All new advances continue to be in the sole discretion of
Lender and neither the entering into this Amendment nor the making of additional advances by Lender waives any of the default
rights and remedies of Lender under Section 13.02 of the Credit Agreement. All default rights and remedies of Lender are therefore
reserved.

 

    	 

    	 

    

 

4.Conditions
Precedent to Effectiveness of this Amendment. The following are conditions precedent to the effectiveness of this Amendment,
notwithstanding anything contained herein to the contrary:

 

(a)Lender
shall have received a fully executed copy of this Amendment in form and substance satisfactory to Lender; and

 

(b)Lender
shall have received payment from Borrowers of all amounts due to Lender in connection with this Amendment.

 

5.Expenses.
Immediately upon request, Borrowers shall pay all reasonable expenses and costs of Lender (including, without limitation, the
reasonable attorney fees of counsel for Lender and reasonable expenses of counsel for Lender) in connection with the preparation,
negotiation, execution and approval of this Amendment and any and all other documents, instruments and things contemplated hereby,
whether or not such transactions are consummated, together with all other reasonable expenses and costs incurred by Lender chargeable
to Borrowers pursuant to the terms of the Credit Agreement which are unpaid at such time.

 

6.Amendment
Fee. Borrowers agree to pay on the date hereof an amendment fee of $10,000.00, which fee Lender may charge as a Revolving
Loan. Such fee shall be fully earned when due and is non refundable.

 

7.Ratification;
Estoppel; Reaffirmation.

 

(a)Each
Borrower reaffirms the Credit Agreement and other Loan Documents, and ratifies the Credit Agreement and the other Loan Documents,
as amended, modified, and supplemented.

 

(b)Each
Borrower reaffirms to Lender each of the representations, warranties, covenants and agreements set forth in Sections 9 through
12 of the Credit Agreement and the other Loan Documents with the same forcc and effect as if each were separately stated herein
and made as of the date hereof to Lender.

 

(c)Each
Borrower further represents and warrants that, as of the date hereof, there are no counterclaims, defenses or offsets of any nature
whatsoever to the Loans or any of the Loan Documents and that, as of the date hereof, no Event of Default (other than the Existing
Defaults) has occurred or exists under any of the Loan Documents.

 

(d)Each
Borrower ratifies, affirms and agrees that the Credit Agreement and other Loan Documents, as amended, modified, and supplemented
hereby by this Amendment, represent the valid, enforceable and collectible obligations of Borrower.

 

8.Release.
Each Borrower does hereby release, remise, acquit and forever discharge Lender and Lender’s employees, agents, representatives,
consultants, attorneys, fiduciaries, servants, officers, directors, partners, predecessors, successors and assigns, subsidiary
corporations, parent coiporation, and related corporate divisions (all of the foregoing hereinafter called the “Released
Parties”), from any and all action and causes of action, judgments, executions, suits, debts, claims, demands, liabilities,
obligations, damages and expenses of any and eveiy character, known or unknown, direct and/or indirect, at law or in equity, of
whatsoever kind or nature, whether heretofore or hereafter arising, for or because of any matter or things done, omitted or suffered
to be done by any of the Released Parties prior to and including the date of execution hereof, and in any way directly or indirectly
arising out of or in any way connected to this Amendment, the Credit Agreement and the other Loan Documents (all of the foregoing
hereinafter called the “Released Matters”). Each Borrower acknowledges that the agreements in this paragraph
are intended to be in full satisfaction of all or any alleged injuries or damages arising in connection with the Released Matters.
Each Borrower represents and warrants to Lender that it has not purported to transfer, assign or otherwise convey any right, title
or interest of such Borrower in any Released Matter to any other Person and that the foregoing constitutes a full and complete
release of all Released Matters.

 

    	 	2	 

    	 

    

 

EACH
BORROWER INTENDS THE ABOVE RELEASE TO COVER, ENCOMPASS, RELEASE, AND EXTINGUISH, INTER ALIA, ALL CLAIMS, DEMANDS, AND CAUSES
OF ACTION THAT MIGHT OTHERWISE BE RESERVED BY THE CALIFORNIA CIVIL CODE SECTION 1542, (OR ITS EQUIVALENT UNDER ILLINOIS LAW) WHICH
PROVIDES AS FOLLOWS:

 

“A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME
OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR “

 

EACH
BORROWER ACKNOWLEDGES THAT IT MAY HEREAFTER DISCOVER FACTS DIFFERENT FROM OR IN ADDITION TO THOSE NOW KNOWN OR BELIEVED TO BE
TRUE WITH RESPECT TO SUCH CLAIMS, DEMANDS, OR CAUSES OF ACTION, AND AGREES THAT THIS AMENDMENT AND THE ABOVE RELEASE ARE AND WILL
REMAIN EFFECTIVE IN ALL RESPECTS NOTWITHSTANDING ANY SUCH DIFFERENCES OR ADDITIONAL FACTS

 

9.No
Cancellation. This Amendment evidences the same indebtedness as evidenced by the Credit Agreement and other Loan Documents
(as modified hereby). This Amendment is secured by the Collateral as provided in the Credit Agreement including all amendments
and modifications thereto. This Amendment is an extension, modification and amendment of the prior documents and the execution
hereof does not evidence a cancellation of the indebtedness evidenced by the prior documents.

 

10.Miscellaneous.

 

(a)No
inference in favor of, or against, any party will be drawn from the fact that such party has drafted any portion of this Amendment,
the Credit Agreement, or any other Loan Document, as each may be amended.

 

(b)This
Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which,
when so executed and delivered, shall be deemed an original, but all of which counterparts together shall constitute but one agreement.
Delivery of an executed counterpart of a signature page of this Amendment by facsimile or in electronic (i.e., “pdf”
or “tif”) format shall be effective as delivery of a manually executed counterpart of this Amendment. Any party who
chooses to deliver its signature in such manner agrees to provide promptly to the other parties a copy of this Amendment with
its inked signature, but the party’s failure to deliver a copy of this Amendment with its inked signature shall not affect
the validity, enforceability and binding effect of this Amendment.

 

(c)This
Amendment shall be governed and controlled by the internal laws of the State of Illinois as to interpretation, enforcement, validity,
construction, effect, and in all other respects. 

 

(d)This
Amendment will be binding upon and will inure to the benefit of the parties hereto and to their respective successors and assigns.

 

(e)Sections
16.03 and 16.09 of the Credit Agreement are specifically incorporated herein as though set forth in full.

 

(f)This
Amendment is a Loan Document.

 

[signature
page to follow]

 

    	 	3	 

    	 

    

 

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

 

LENDER

MB
FINANCIAL BANK, N.A.

 

	By:	/s/
    Martha Gaskin	 
	Name:	Martha
    Gaskin	 
	Titl:	Senior
    Vice President	 

 

BORROWERS

MENDOCINO
BREWING COMPANY, INC.,

a
California corporation

 

	By:	/s/
    Mahadevan Narayanan	 
	Name:	Mahadevan
    Narayanan	 
	Titl:	Chief
    Financial Officer	 

 

RELET
A BREWING COMPANY LLC, 

a
Delaware limited liability company

 

	By:	MENDOCINO
    BREWING COMPANY,	 
	 	a
    California corporation,	 
	 	its
    sole member	 

 

	By:	/s/
    Mahadevan Narayanan	 
	Name:	Mahadevan
    Narayanan	 
	Titl:	Chief
    Financial Officer	 

  

 

 

 

Signature
Page to Third Amendment - Mendocino Brewing Company

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00259-of-00352.parquet"}]]