Document:

Exhibit 10.1

 

CREDIT AGREEMENT

 

THIS CREDIT AGREEMENT is made
and entered into this 20th day of July 2021, by and between: Kinpak Inc., an Alabama Corporation (hereinafter “Borrower”);
and Regions Bank, an Alabama banking corporation (hereinafter referred to as the “Bank”).

 

W I T N E S S E T H:

 

WHEREAS, Borrower has a plant
location in Montgomery, Alabama located in the Industrial Development Park and seeks to expand its plant facilities; and

 

WHEREAS, Borrower entered
into that certain Lease Agreement between The Industrial Development Board of the City of Montgomery
(“IDB”) and Kinark Corporation, dated September 1, 1979, recorded October 18, 1979, in RLPY Book 461, Page 566, as assigned
by that certain Assignment and Assumption of Lease between Kinark Corporation, Ocean Bio Chem, Inc., and The Industrial Development Board
of the City of Montgomery, dated February 27, 1996, recorded March 4, 1996, as RLPY Book 1639, Page 276, as assigned by that certain Assignment
and Assumption of Lease between Ocean Bio Chem, Inc., KINPAK INC., and The Industrial Development Board of the City of Montgomery, dated
December 1, 1996, recorded December 20, 1996, in RLPY Book 1718, Page 613, as restated by that certain Restated Lease Agreement between
The Industrial Development Board of the City of Montgomery and Kinpak Inc., dated December 1, 1996, recorded December 20, 1996, in RLPY
Book 1718, Page 621, as supplemented by that First Supplemental Lease Agreement between The Industrial Development Board of the City of
Montgomery and KINPAK INC., dated March 1, 1997, recorded March 3, 1997, in RLPY Book 1735, Page 209, as supplemented by that certain
Second Supplemental Lease Agreement between The Industrial Development Board of the City of Montgomery and KINPAK INC., dated July 1,
2002, recorded July 22, 2002, in RLPY Book 2448, Page 18, and as supplemented by that certain Third Supplemental Lease Agreement between
The Industrial Development Board of the City of Montgomery and KINPAK INC., dated June 1, 2017, recorded May 19, 2017 in RLPY Book 4970,
Page 192, as amended and restated by that certain Second Restated Lease Agreement dated September 1, 2017, recorded September 26, 2017,
in RLPY Book 05018, Page 0018; and

 

WHEREAS, Borrower has requested
a term loan in the amount of Five Million and No/100 Dollars ($5,000,000.00) which will be secured by a Second Priority Mortgage, Assignment
of Lease, and Security Agreement for plant expansion on the Property described in Section 1.15 herein owned by the IDB and leased to Borrower;
and

 

NOW, THEREFORE, in consideration
of the promises herein contained, and each intending to be legally bound hereby, the parties hereto agree as follows:

 

1. Defined
Terms. As used in this Credit Agreement, the following terms shall have the following meanings (it being understood that other defined
terms are defined within the text of this Credit Agreement):

 

1.1 “Collateral”
shall mean a second priority Mortgage on the mortgaged Property and the improvements presently and thereafter located thereon and the
personal property, equipment, and fixtures described therein and the Guaranty.

 

1.2 “Contaminant”
shall mean any Hazardous Material, hazardous substance, hazardous waste, pollutant, radioactive substance, radioactive waste, toxic substance,
toxic waste, medical waste, special waste, petroleum or petroleum derived substance or waste, asbestos, polychlorinated biphenyls (“PCBs”),
or any hazardous or toxic constituent thereof and includes any substance regulated under the Environmental Laws. 

 

1.3 “Credit
Agreement” shall mean this agreement between Borrower and Bank and any and all written amendments hereto executed by both Borrower
and Bank.

 

1.4 “Default”
shall mean any Event of Default and any event which would be an Event of Default with the giving of notice or lapse of any applicable
grace period, or both.

 

     

     

    

 

1.5 “Intentionally
Omitted”

 

1.6 “Environmental
Laws” shall mean all applicable federal, state or local environmental laws, statutes, common law or equitable principles, rules,
regulations, orders, licenses, codes, decrees, judgments, injunctions, approved regulatory plans, notices, or demand letters relating
to or addressing (i) noise, (ii) releases, discharges, or emissions of Contaminants into the workplace, community (including without limitation
any community or municipal sewer system), or the environment (including without limitation air, surface water, groundwater, land surface,
or subsurface strata), (iii) otherwise relating to the generation, manufacture, processing, distribution, use, treatment, storage, release,
disposal, transport, or handling of Contaminants, and (iv) dredging and filtering of wetlands. These Environmental Laws include, but are
not limited to, the following statutes, as amended, any successor thereto, and any regulations promulgated pursuant thereto, and any state
or local statutes, ordinances, rules, regulations and the like addressing similar issues: the Comprehensive Environmental Response, Compensation
and Liability Act; the Emergency Planning and Community Right-to-Know Act; the Hazardous Substances Transportation Act; the Resource Conservation
and Recovery Act (including but not limited to Subtitle I relating to underground storage tanks); the Solid Waste Disposal Act; the Clean
Water Act; the Clean Air Act; the Toxic Substances Control Act; the Safe Drinking Water Act; the Occupational Safety and Health Act; the
Federal Water Pollution Control Act; the Federal Insecticide, Fungicide and Rodenticide Act; the Endangered Species Act; the National
Environmental Policy Act; and the River and Harbors Appropriation Act.

 

1.7 “Event
of Default” shall mean the happening of any one or more of the following:

 

(1) If
default shall be made by Borrower in the payment of any installment of principal or interest under either Note after the expiration of
any grace period specified therein;

 

(2) If
default shall be made by Borrower in the performance or observance of any other covenant, agreement or provision contained in any other
Loan Document after resort to and expiration of any cure or grace period permitted therein;

 

(3) If
an Event of Default shall occur under any other Loan Document, as such term is defined in such other Loan Document;

 

(4) If
default shall be made by Borrower in the due performance or observance of any other covenant, agreement or provision of this Credit Agreement,
or a breach shall exist in any representation, warranty or covenant contained herein;

 

(5) If
Borrower shall be involved in financial difficulties as evidenced:

 

(i) by
admission in writing of Borrower’s inability to pay Borrower’s debts generally as they become due;

 

(ii) by
filing a petition in bankruptcy or for reorganization or for the adoption of an arrangement under the Bankruptcy Act (as now or in the
future amended) or an admission seeking the relief therein provided;

 

(iii) by
making a general assignment for the benefit of Borrower’s creditors;

 

(iv) by
consenting to the appointment of a receiver for all or a substantial part of Borrower’s property;

 

(v) by
being adjudicated bankrupt;

 

(vi) by
the entry of a court order appointing a receiver or trustee for all or a substantial part of any such Borrower’s property, which
order shall not be vacated, set aside or stayed within thirty (30) days from the date of entry;

 

(vii) by
the assumption of custody or sequestration by a court of competent jurisdiction of all or substantially all of any of such Borrower’s
property, which custody or sequestration shall not be suspended or terminated within thirty (30) days from its inception; or

 

(viii) by
the default under any other loan agreement, credit agreement, promissory note or loan document with Bank or with any material loan document
with any other lender, after resort to grace or cure periods set forth therein, if any.

 

(6) If any material
adverse change shall occur in the financial condition, operations, properties, or prospects of Borrower or any event shall occur which
has a material adverse impact on Borrower’s ability to perform Borrower’s obligations under the Loan Documents.

 

1.8 “Financial Statements”
shall mean the financial statements including financial information of Borrower as required to be provided in this Credit Agreement. 

 

1.9 “Guarantor”
shall mean Ocean Bio-Chem, Inc.

 

1.10 “Hazardous
Materials” shall include without limitation, any flammable, hazardous wastes, hazardous or toxic substances or related materials
defined in and subject to regulation under the Environmental Laws.

 

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1.11 “Liabilities”
shall mean whenever used herein, all indebtedness, liabilities, and obligations of Borrower to Bank, whether jointly or severably, matured
or unmatured, liquidated or unliquidated, direct or indirect, primary or secondary, absolute or contingent, now existing or hereafter
arising, and whether arising by contract, operation of law, or otherwise, and all extensions, modifications, and renewals thereof, whether
incurred or given as maker, endorser, guarantor, surety or otherwise, including without limitations, the Loans and indebtedness evidenced
by each Note or any modification, amendment, renewal or replacement thereof or therefore.

 

1.12 “Loan”
shall mean the loan being made by Bank to Borrower, pursuant to this Credit Agreement and represented by the Note.

 

1.13 “Loan
Documents” shall mean this Credit Agreement, the Note, the Mortgage, the closing statement, and all other documents executed
by Borrower, Bank or any third party pursuant to the Loan, individually or collectively, as the case may be.

 

1.14 “Mortgage”
shall mean that certain Mortgage, Assignment of Leases and Security Agreement on the Property to be filed in the probate records of Montgomery
County, Alabama, of all or any portion of such Property and Security Agreement on any leasehold or fee interest of Borrower in the Property,
and delivered to Bank to secure the Notes, as such Mortgage may be amended from time to time.

 

1.15 “Property”
shall mean the following parcels of real estate more particularly described in the mortgages to and any improvements now or in the future
located on the real estate:

 

(1) 2780
Gunter Park Drive East, Montgomery, Alabama

 

1.16 “Release”
shall mean releasing, spilling, leaking, migrating, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching,
depositing, dispensing or dumping into or onto the environment (including without limitation air, surface water, groundwater, land surface
or subsurface strata), whether intentional or unintentional.

 

2. The
Loan.

 

2.1 General
Description. Subject to the terms and conditions of this Credit Agreement and the terms and conditions of the Note, Bank agrees to
extend a term note in the amount of Five Million and No/100 Dollars ($5,000,000.00) (“Note”).

 

2.2 Interest.
Interest shall be paid to Bank on the amount of the Loan outstanding from time to time and shall be payable at the rate of interest at
the time or times set forth in the Note.

 

2.3 Security.
Security for the Loan shall be the Collateral.

 

2.4 Origination
Fee. Borrower shall not pay to Bank an origination fee.

 

2.5 Term.
The obligation to repay the Loan, amortization and other terms of the Loan shall be evidenced by and contained in the Note, the terms
of which are incorporated herein by reference.

 

3. Documents.
In addition to the other conditions to the extension of credit contained in this Credit Agreement, Bank shall have no obligation to disburse
the funds as required by the Note until Borrower has delivered the following items to Bank, in form and substance satisfactory to Bank:

 

3.1 The
executed Loan Documents.

 

3.2 Certified
copy of the resolutions of Borrower authorizing the execution and delivery of the Loan Documents and identifying the individual authorized
to execute the same.

 

3.3 Copies
of documents evidencing any current interests in and liens against the Property.

 

3.4 Certificate
of Existence for Borrower.

 

3.5 Evidence
that the use of the Property does not violate any zoning restrictions covering the Property.

 

3.6 A
policy of flood insurance naming Bank as an additional insured, covering the Property in the maximum amount available, or proof satisfactory
to Bank that the Property is not located within a designated flood plain.

 

3.7 UCC
searches on such parties and in such locations as Bank may require.

 

3.8 A
Certificate of the Secretary of Borrower certifying the names and true signatures of the officers of Borrower authorized to sign the Loan
Documents to which it is a party and the other documents to be delivered by Borrower under this Agreement.

 

3.9 Certificate
of Good Standing from the state of the incorporation of Borrower.

 

3.10 Such
other documents as Bank may require.

 

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4. Conditions
of Lending. Bank shall not be obligated to extend the credit evidenced by the Note and this Credit Agreement unless all the following
conditions shall have been met as of the date hereof.

 

4.1 Representations
True and Correct; Etc. The representations and warranties contained in Section 5 hereof shall be true and correct; Borrower shall
be in compliance with all of the terms and provisions contained in the Loan Documents, no Event of Default shall have occurred hereunder;
and neither the business nor assets nor the condition, financial or otherwise, of Borrower shall have been materially adversely affected
in any material manner as the result of any fire, explosion, accident, strike, riot, condemnation, or acts of God, or other event or development.

 

4.2 Due
Authorization. All proper proceedings shall have been taken by Borrower and all other necessary parties authorizing the execution
and delivery of this Credit Agreement and authorizing the transactions contemplated hereby and Bank shall have received certified copies
of all actions taken by the Borrower and other necessary entities, authorizing the execution, delivery and performance of the Loan Documents
and each and every other document to be delivered pursuant to this Agreement.

 

4.3 Documentation.
All instruments and proceedings in connection with the transactions contemplated by this Credit Agreement shall be satisfactory, in form
and substance, to Bank, and Bank shall have received copies of all documents, instruments, agreement and other matters, including records
of corporate, proceedings, which it may have requested in connection therewith.

 

4.4 Title
Policy. A Commitment for Loan Policy of Title Insurance in the amount of Five Million and No/100 Dollars ($5,000,000.00), by which
said title company commits to issue a mortgagee’s policy of title insurance that:

 

(1) Specifically
insures that the Mortgage is a second lien upon the Property;

 

 

(2) Waives
the following standard exceptions and insures over (i) facts which would be disclosed by a comprehensive survey of the premises for the
properties which Borrower can produce an existing survey, (ii) rights and claims of parties in possession, and (iii) mechanic’s,
contractor’s or materialmen’s liens and lien claims; and

 

(3) Commits
to issue such other endorsements as are customary in connection with mortgage loans of this amount in Alabama.

 

5. Warranties
and Representations. Borrower represents and warrants to Bank that:

 

5.1 Existence
of Borrower. Borrower is a Alabama corporation duly organized, validly existing and in good standing under the laws of the State of
Alabama and is in good standing in every jurisdiction in which the character of the properties owned by Borrower or in which the transaction
of Borrower’s business makes Borrower’s qualifications necessary. Borrower has the power and authority to own its own assets
and to transact the business in which it is now engaged.

 

5.2 Due
Authorization. Borrower has full power and authority to enter into this Credit Agreement, to execute and deliver the Loan Documents,
and to incur the obligations provided for herein, all of which have been duly authorized by all proper and necessary company action.

 

5.3 Validity;
No Conflicts. This Credit Agreement and all Loan Documents constitute, and when executed and delivered for value received will constitute,
valid and legally binding obligations of Borrower enforceable in accordance with their respective terms, except as such enforceability
may be limited by bankruptcy, insolvency or other similar laws affecting creditors’ rights generally and except for general equitable
principles, and will not violate, conflict with or constitute any default under any law, government regulation, organizational documents
of Borrower, or any other agreement or instrument binding upon Borrower.

 

5.4 Litigation.
There are no actions, suits, proceedings or investigations pending against Borrower, to the knowledge of Borrower, threatened against
it before or by any court or administrative agency which, if determined adversely to Borrower, would have a material adverse effect on
Borrower’s financial condition, operations or prospects.

 

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5.5 Title
to Properties. Borrower has good and marketable title to all of its assets, subject to no lien, mortgage, pledge, encumbrance, or
charge of any kind not previously disclosed in writing to Bank.

 

5.6 Financial
Statements. The financial statements of Borrower, which have been heretofore delivered to Bank, are true, correct and accurate in
all material respects and there have been no material adverse changes in the financial condition of Borrower since the date of the latest
financial statements.

 

5.7 Permits
and Licenses. Borrower has obtained and now possesses all necessary or required permits, franchises, certificates and other authorizations
from governmental and/or regulatory authorities permitting Borrower to operate Borrower’s business as is now conducted.

 

5.8 Compliance
with Laws. To the knowledge of Borrower, Borrower is in compliance with all federal, state, and local laws, rules, regulations, ordinances,
codes, and orders (collectively, the “Laws”), the failure to comply with which could have a materially adverse effect
on the condition, financial or otherwise, operations, properties, or business of the Borrower or on the ability to Borrower to perform
its obligations under the Loan Documents.

 

5.9 Environmental
Matters. Except as otherwise disclosed to Bank in writing herewith, Borrower represents and warrants that the Property has not previously
been used and is not now used in a manner that violates the Environmental Laws and, to the best of Borrower’s knowledge, there are
no environmental liens attached to the Property and no present events, conditions, circumstances, activities, practices, incidents, actions
or plans which may give rise to any liability or otherwise form the basis of any claim, action, demand, suit, proceeding, hearing or investigation
arising under any Environmental Law based on the generation, manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling or the release into the workplace, the community or the environment of any Contaminant.

 

5.10 Principal Place of
Business; Records. The principal place of business and chief executive offices of Borrower and the place where the records required
by Section 6.9 hereof are kept are the addresses of Borrower shown in Section 12 hereof. 

 

5.11 Anti-Terrorism
Laws.

 

(A) General. Neither Borrower nor
any Affiliate of Borrower is in violation of any Anti-Terrorism Law or engages in or conspires to engage in any transaction that evades
or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism
Law. 

 

(B) Executive
Order No. 13224.

 

(1) Neither
Borrower nor any Affiliate of Borrower is any of the following (each a “Blocked Person”):

 

(a) A Person
that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No. 13224;

 

(b) A Person
owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the provisions
of, Executive Order No. 13224;

 

(c) A Person
with which any bank or other financial institution is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism
Law;

 

(d) A Person
that commits, threatens or conspires to commit or supports “terrorism” as defined in Executive Order No. 13224;

 

(e) A Person
that is named as a “specially designated national” on the most current list published by the U.S. Treasury Department Office
of Foreign Asset Control at its official website or any replacement website or other replacement official publication of such list; or

 

(f) A Person
who is affiliated with a Person listed above.

 

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 (2) No Borrower Party (i) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit of any Blocked Person or (ii) deals in, or otherwise engages in any transaction relating to, any property or interests in property blocked pursuant to Executive Order No. 13224.

 

6. Affirmative
Covenants. Borrower agrees and covenants that until the Loans have been paid and performed in full, Borrower shall:

 

6.1 Entity
Existence. Maintain its existence and, in each jurisdiction in which the character of the properties owned by it or in which the transaction
of its business makes qualification necessary, maintain good standing.

 

6.2 Payment
of Obligations. Comply with all applicable statutes and governmental regulations and pay all taxes, assessments, charges, claims for
labor, supplies, rent, and other obligations which, if unpaid, might give rise to a lien against Borrower’s property, except claims
being contested in good faith against which reserves deemed adequate by Bank have been set up.

 

6.3 Annual
Financial Statements and Tax Returns. Within one hundred twenty (120) days of the close of each fiscal year of Guarantor shall furnish
Bank with consolidated annual financial statements, audited by a certified public accountant satisfactory to Bank.

 

6.4 Interim
Financial Statements. Within sixty (60) days after the close of each calendar quarter Guarantor shall furnish Bank with consolidated
interim statements, prepared by Guarantor in accordance and consistent with the past practices of Guarantor.

 

6.5 Intentionally
ommitted.

 

6.6 Inspection.
Upon reasonable notice, permit persons designated by Bank to inspect any and all of the property and company and financial books and records
of Borrower and to discuss Borrower’s affairs with its members and employees at such reasonable times, during business hours at
its principal place of business, as Bank shall request and furnish Bank with such miscellaneous information as it may reasonably request,
provided that such discussions shall be after notice to Borrower and conducted in the presence of a designated officer of Borrower. Upon
reasonable notice, Borrower shall assemble all such books and records requested to be inspected by Bank at Borrower’s principal
place of business.

 

6.7 Conduct
of Business. Conduct its business as is now contemplated and do all things necessary to preserve, renew and keep in full force and
effect Borrower’s rights and franchises necessary to continue Borrower’s business as is contemplated.

 

6.8 Condition
of Properties. Keep Borrower’s properties in good repair, working order and condition, reasonable wear and tear excepted, and
from time to time make all needed and proper repairs, renewals, replacements, additions and improvements thereto and comply with the provisions
of all leases to which they are a party or under which they occupy property so as to prevent any loss or forfeiture thereof or thereunder.

 

6.9 Litigation
and Other Notices. Give Bank prompt written notice upon learning of any of the following:

 

(1) the
occurrence and nature of any Event of Default and any corrective action taken or proposed to be taken with respect thereto; or

 

(2) all
events of default or any event that would become an event of default upon notice or lapse of time or both under any of the terms or provisions
of any note, or of any other evidence of indebtedness or agreement or contract governing the borrowing of money of Borrower if any such
event of default would reasonably be expected to have a material adverse effect on Borrower; or

 

(3) levy
of an attachment, execution or other process against any of the property or assets, real or personal, of Borrower, if such levy would
reasonably be expected to have a material adverse effect on Borrower; or

 

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(4) the
filing or commencement of any action, suit or proceeding by or before any court or any federal, state, municipal, foreign or other governmental
department, commission, instrumentality or agency which, if adversely determined against Borrower, would materially adversely affect the
business, operations, properties, assets or financial condition of Borrower, provided, however, that any proceeding which is being diligently
contested in good faith, and for which there is either adequate insurance or against which reserves have been set up shall not constitute
an Event of Default; or

 

(5) notices
received from federal or state regulatory agencies or any tribunal relating to an order, ruling, statute or other law or information which
might materially and adversely affect the franchises, permits, licenses or rights, or the condition, financial or otherwise, of Borrower,
together with a copy of such notice; or

 

(6) any
matter (other than those specified above as to which Bank has received due notice) which has resulted in, or which Borrower reasonably
believe will result in a materially adverse change in the financial condition or operations of Borrower.

 

6.10 Maintenance
of Records. Keep adequate records and books of account, in which full and correct entries regarding Borrower’s business and
affairs will be made in accordance with generally accepted accounting principles (GAAP) consistently applied, reflecting all financial
transactions of Borrower.

 

6.11 Licenses,
Permits, Etc. Duly and lawfully obtain and maintain in full force and effect all licenses, certificates, permits, authorizations,
approvals, and the like which are material to the conduct of the business of Borrower or which may be otherwise required by law.

 

6.12 Compliance
with Laws and Agreements. Comply in all material respects with (i) all laws, the failure to comply with which causes a material adverse
effect on the condition, financial or otherwise, operations, properties, or business of Borrower, or on Borrower’s ability to perform
Borrower’s obligations under the Loan Documents; and (ii) all material agreements, indentures, mortgages, and other instruments
to which Borrower is a party or by which Borrower’s properties are bound.

 

6.13 Environmental
Laws. Comply with the requirements of all Environmental Laws and shall promptly notify Bank in the event of the discovery of Hazardous
Wastes on the Property. Further, Borrower will promptly forward to Bank copies of all orders, notices, or reports in connection with any
discharge, spillage, or the discovery of Hazardous Wastes or violations of any Environmental Laws which affect the Property.

 

6.14 Insurance.
Borrower shall at all times maintain the following policies of insurance on the Property:

 

(a) with respect to the
Property, commercial general liability insurance in favor of Borrower (and naming Bank and its successors and assigns, as their interest
may appear, as additional insureds), in an amount as may be specified by Bank from time to time;

 

(b) with respect to any
Collateral, such casualty insurance against loss or damage as Bank may reasonably require from time to time;

 

(c) with
respect to the business, maintain business interruption insurance in an amount as may be specified by Bank from time to time;

 

(d) such
other insurance as may be required by applicable laws (including worker’s compensation and employer’s liability insurance)
or as Bank may reasonably require from time to time.

 

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Any policy of property insurance
required by clause (b) above shall be in an amount not less than the full replacement cost of the property covered by such policy, shall
contain a “full replacement cost” endorsement, shall protect against fire, “extended coverage” and other “All-Risk”
perils and shall insure against flood loss risk if the Property is located in a Flood Hazard Area, and shall name Bank and its successors
and assigns, as its interest may appear, as “mortgagee” for any building coverage and “loss payee” for any personal
property/contents coverage. Any policy of commercial general liability insurance required by this Section shall cover personal injury
and property damage, and such insurance shall be primary and non-contributing with any other insurance available to Bank. All insurance
policies shall be in form and substance and issued by insurers reasonably satisfactory to Bank and shall contain such deductibles and
such endorsements as Bank may reasonably require. Upon request by Bank from time to time, Borrower shall deliver to Bank originals or
copies of all such insurance policies and certificates evidencing such policies. Borrower shall cause each insurer under each of the policies
to agree (either by endorsement upon such policy or by letter addressed to Bank) to give the Bank at least thirty (30) business days’
prior written notice of the cancellation of such policies in whole or in part or the lapse of any coverage thereunder.

 

7. Negative
Covenants. Until the Loan has been repaid in full, without prior written notification and the written consent of Bank, Borrower shall
not:

 

7.1 Continuity
of Existing Business. At any time sell the business, the Property, the Collateral or any part thereof, merge or consolidate with another
person or entity, acquire or engage in any other business or venture or cease to remain in or to engage in substantially the same business
as it is presently engaged.

 

7.2 Liens
and Encumbrances. Assume any liability, debt, or other obligation of any person and/or entity or create, assume, incur or suffer to
exist any lien or encumbrance of any kind, upon any of the Collateral, whether now owned or hereafter acquired, or upon the income or
profits therefrom, except for:

 

(a) Liens for taxes, assessments
and other governmental charges which are not delinquent or which are being contested in good faith by appropriate proceedings diligently
conducted, against which reserves have been set up;

 

(b) Liens incurred or deposits
made in the ordinary course of business in connection with worker’s compensation, unemployment insurance or other similar laws or
to secure the performance of statutory obligations of a like nature (exclusive of obligations for the payment of money borrowed);

 

(c) Liens imposed by law
in connection with transactions in the ordinary course of business, such as liens of carriers, warehousemen, mechanics and materialmen
for sums not yet due or being contested in good faith and by appropriate proceedings diligently conducted, against which adequate reserves
have been set up; and

 

(d) Liens in favor of Bank;

 

(e) A
liability, debt, or other obligation incurred in the normal course of business not to exceed $250,000, excluding any amounts due for trade
payables.

 

7.3 Loans
and Advances. Make loans or advances to any person or persons, except for a minimal loan to an employee of Borrower and also except
for those advances associated with certain materials purchases in the normal course of business operations.

 

7.4 Transactions
with Affiliates. Enter into any transaction including, without limitation, the purchase, sale, or exchange of property or the rendering
of any service, with any affiliate including, without limitation, the purchase, sale, or exchange of property or the rendering of any
service, with any affiliate, except in the ordinary course of and pursuant to the reasonable requirements of Borrower’s business
and upon fair and reasonable terms no less favorable to Borrower than would be obtained in a comparable arms-length transaction with a
person not an affiliate.

 

7.5 Conflicting
Agreements. Enter into any material agreement containing any provision which would be violated or breached by the performance of Borrower’s
obligations under this Credit Agreement.

 

7.6 Fixed
Charge Coverage Ratio. Guarantor fixed charge coverage ratio is defined as EBITDA (Net Income before taxes and depreciation plus amortization
plus interest expense plus non-recurring and/or non-cash losses and expenses minus non-recurring and/or non-cash gains and income) minus
distributions minus cash taxes paid minus unfunded capital expenditures to sum of prior period Current Maturities of Long Term Debt plus
interest expense which. “shall be greater than or equal to 1.2 to 1.00 tested quarterly on a rolling four-quarter basis.

 

7.7 Debt
to Capitalization. Guarantor shall maintain a maximum debt to capitalization of .75 to 1; defined as funded debt divided by the sum
of total net worth and funded debt, tested at the end of each fiscal quarter.

 

7.8 Change
of Ownership. At any time shall majority shareholder’s ownership drop below 50% of the outstanding shares of Borrower.

 

7.9 Banking
Relationship. Borrower shall maintain its current banking relationship using the products and services currently provided by Bank.

 

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8. Event
of Default. Upon the Event of Default, Bank shall have all of the remedies set forth in any of the Loan Documents.

 

9. Cross-Default
and Cross-Collateralization. The Notes and Collateral hereunder shall be cross-collateralized and cross-defaulted with each Note hereunder
and any other note executed by Borrower in favor of Regions Capital Advantage, Inc. (“RCA”), or any other note executed by
Borrower for the benefit of Regions Bank. Borrower agrees that a default under any Note contemplated hereunder or with RCA, shall constitute
a default under all Notes contemplated herein and Regions Bank, RCA or holder, as the case may be, shall thereafter have all rights and
remedies following a default under the Loan Documents. All collateral including, but not limited to, the Collateral defined in Section
1.2 herein, which Regions Bank or RCA may at any time acquire from Borrower or from any source in connected with the indebtedness to Regions
Bank or RCA arising under or pursuant to this Agreement or any agreement with RCA shall constitute security for all Liabilities (as such
term is defined in Section 1.13) without apportionment or designation as to particular obligations, and all obligations, however and whenever
occurred, shall be secured by such collateral howsoever and whensoever acquired, and it is the express intent of the parties to this Agreement
that all advances made by Regions Bank or RCA to Borrower shall be so cross-collateralized neither Regions Bank nor RCA shall have any
obligation to list any of such collateral described in or referred to in this Agreement upon any of the documents executed in conjunction
with the indebtedness, upon any future notes or extensions of credit, it being the intention of the parties to this Agreement that all
such transactions shall be collateralized by the collateral, and the documents executed in conjunction herewith. Bank shall have the right,
in its sole discretion, to determine the order in which Bank’s rights and remedies against any of the collateral are to be exercised
and which type or portions of collateral are to be proceeded against and the order of application of the proceeds of any such collateral
as against particular Liabilities.

 

10. No
Waiver. No waiver of any default hereunder or under any Note shall extend to or shall affect any subsequent or other then existing
defaults or shall impair any rights, remedies or powers of Bank. No delay or omission of Bank or any subsequent holder of any Note to
exercise any right, remedy or power upon default shall be construed as a waiver of any such default or acquiescence therein.

 

11. Addresses.
Any notice or demand which by any provision of this Credit Agreement is required or provided to be given shall be deemed to have been
sufficiently given or served for all purposes by being sent as registered or certified mail, postage and registration or certification
charges prepaid, to the following addresses:

 

	If to Borrower:	Kinpak Inc.
	 	4041 S.W. 47th Avenue
	 	Ft. Lauderdale, Florida  33314
	 	Attention: Jeffrey S Barocas
	 	Facsimile: 954-587-2813
	 	 
	 	 
	To Bank:	Regions Bank
	 	201 Monroe Street, Suite 200
	 	Montgomery, Alabama 36104
	 	Attention: Draper L. Stanford

 

Bank and Borrower each may change its address
for notices or payments, as appropriate, by providing written notice to the others listed above at the address then in effect.

 

12. Binding
Effect. All of the terms and provisions of this Credit Agreement shall bind and inure to the benefit of the parties hereto and their
respective successors and assigns.

 

13. Headings.
The headings of the articles, sections, paragraphs and subdivisions of this Credit Agreement are for convenience of reference only, are
not to be considered a part hereof, and shall not limit or otherwise affect any of the terms hereof.

 

14. Survival
of Covenants. All covenants, agreements, representations and warranties made herein or delivered by Borrower to Bank shall be deemed
to have been material and relied on by Bank, notwithstanding any investigation made by or on behalf of Bank, and shall survive the execution
and delivery to Bank of the Notes.

 

15. Severability.
In case any one or more of the provisions contained in this Agreement shall for any reason be held invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect any other provisions hereof and this Agreement shall be
construed as if such invalid, illegal or unenforceable provisions had never been contained herein.

 

    9

     

    

 

16. Controlling
Law. This Credit Agreement shall be governed by and construed in accordance with the laws of the State of Alabama. BORROWER HEREBY
CONSENTS TO THE PERSONAL JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF ALABAMA IN CONNECTION WITH ANY CONTROVERSY
INVOLVING OR RELATED TO ANY OF THE LOAN DOCUMENTS, WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT CONVENIENT, AND AGREES THAT ANY
LITIGATION INITIATED BY BORROWER OR ON BORROWER’S BEHALF AGAINST BANK IN CONNECTION WITH ANY OF THE LOAN DOCUMENTS SHALL BE VENUED
IN EITHER THE CIRCUIT COURT OF MONTGOMERY COUNTY, ALABAMA, OR THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF ALABAMA.

 

17. Waiver
of Jury Trial. BORROWER AND BANK HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
(WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH ANY LOAN DOCUMENT OR THE RELATIONSHIP
ESTABLISHED THEREUNDER.

 

18. Costs
and Expenses. Whether or not the transactions contemplated by this Credit Agreement shall be consummated, Borrower shall bear any
expenses (including fees and expenses of counsel for Bank) in connection with the preparation of the Loan Documents and also in connection
with any modification thereto; any of the Bank’s out-of-pocket expenses in connection with the matters contemplated hereby, including
but not limited to the cost of the Appraisals. If, at any time or times hereafter, upon an Event of Default hereunder, the Bank employs
counsel to advise or provide other representation with respect to the Loan Documents, or any other agreement, document or instruments
heretofore, now or hereafter executed by Borrower and delivered to the Bank, or to collect the balance due under the Loan, or to commence,
defend or intervene, file a petition, complaint, answer, motion or other pleadings or to take any other action in or with respect to any
suit or proceeding relating to the Loan Documents, or any other agreement, instrument or document heretofore, now or hereafter executed
by Borrower and delivered to the Bank or to protect, collect, lease, sell, take possession of or liquidate any of the security for the
Loan or attempt to enforce any rights of the Bank or corporation which may be obligated to the Bank by virtue of the Loan Documents or
any other agreement, document, or instrument heretofore, now or hereafter delivered to the Bank by or for the benefit of Borrower; then,
in any such events, and provided the Bank prevails in such action or other proceeding, all of the reasonable attorneys’ fees arising
from such services and any expenses, costs, and charges relating thereto shall constitute additional obligations of Borrower to the Bank
payable on demand of the Bank.

 

19. Merger.
This Credit Agreement and the instruments referred to herein supersede and incorporate all representations, promises, and statements,
oral or written, made in connection with the Loan.

 

20. Amendment.
This Credit Agreement may not be varied, altered, or amended except by a written instrument executed by an authorized officer of Bank
and Borrower.

 

21. Counterparts.
This Credit Agreement may be executed in any number of counterparts, each of which, when executed and delivered, shall be an original,
but such counterparts shall together constitute one and the same instrument.

 

22. Acceptance.
The Loan Documents shall not be effective until accepted by Bank.

 

    10

     

    

 

IN WITNESS WHEREOF, the parties
have executed this Credit Agreement on the day and year first above written.

 

	 	REGIONS
    BANK
	 	 	 
	 	/s/ Draper
    L. Stanford
	 	By:	Draper
    L. Stanford
	 	Its:	Senior
    Vice President
	 	 	 
	 	KINPAK
    INC.,
	 	an
    Alabama Corporation
	 	 	 
	 	/s/ Jeffrey
    S Barocas
	 	By:	Jeffrey
    S Barocas
	 	Its:	Chief
    Financial Officer
	 	 	 
	 	GUARANTOR:
	 	 
	 	OCEAN
    BIO-CHEM, INC.,
	 	a
    Florida corporation
	 	 	 
	 	/s/ Jeffrey S Barocas
	 	By:	Jeffrey
    S Barocas
	 	Its:	Chief
    Financial Officer

 

 

11Exhibit 10.2

 

GUARANTY AGREEMENT

 

THIS GUARANTY AGREEMENT (“this
Agreement”), made as of the ___th day of July, 2021 by Ocean Bio-Chem, Inc., a Florida corporation (the “Guarantor”)
with Regions Bank, an Alabama banking corporation (the “Bank”).

 

W I T N E S S E T H:

 

WHEREAS, Kinpak Inc., an Alabama
corporation (the “Borrower”), has executed and delivered to Bank a certain Promissory Note dated July 20, 2021 (the “Note”)
in the principal amount of Five Million and No/100 Dollars ($5,000,000.00) (the “Loan”); and

 

WHEREAS, the Loan is, among
other things, subject to the terms and conditions of that certain Credit Agreement (“Credit Agreement”) dated July 20, 2021,
by and among Lender, Borrower, and Guarantors, and that certain Mortgage of even date therewith which secures, in part, the Note (hereinafter,
the Credit Agreement and the Mortgage are sometimes referred to as the “Loan Documents”). As an inducement to the Bank to
make the loan provided for therein, the Guarantor agreed to guarantee all Obligations (as defined below) of the Borrower and to execute
and deliver this Agreement.

 

NOW, THEREFORE, in consideration
of the Loan and of each extension or renewal of the Loan and to enable the Loan to be maintained or obtained by the Borrower, the Guarantor
hereby agrees with the Bank as follows:

 

1. The Guarantor does hereby
unconditionally guarantee the payment to the Bank promptly when due, whether by acceleration or otherwise, of all Obligations of the Borrower
to Bank. As used in this Agreement, the term “Obligations” means every promise or undertaking of the Borrower to repay the Loan,
now or hereafter made by the Borrower under the Note or the Loan Documents and all interest and other charges thereon, all extensions
and renewals of the Loan, and all other sums agreed to be paid by the Borrower under the Note or the Loan Documents, together with every
promissory note or other instrument now or hereafter evidencing the obligation of the Borrower to repay the Loan, the interest thereon,
or such other charges. The Obligations include, without limitation, interest, attorneys’ fees and other charges on any debt or obligation
of the Borrower accruing after the filing of a petition under any chapter of the federal Bankruptcy Code by or against the Borrower and
any loans or other credit extended to the Borrower after the filing of any such petition, notwithstanding the release of the Borrower
from the performance or observance of any of its agreements covenants or obligations by operation of law.

 

2. The Guarantor agrees that,
if any of the Obligations are not paid when due, the Guarantor will, upon demand by the Bank, forthwith pay such Obligations, or if the
maturity thereof shall have been accelerated by the Bank, the Guarantor will forthwith pay all Obligations of the Borrower. No such payment
shall discharge the liability of the Guarantor hereunder until all Obligations shall have been paid in full. The Guarantor further agrees
to pay to the Bank, upon demand, all losses and reasonable costs and expenses, including attorneys’ fees, that may be incurred by the
Bank in attempting to collect the Obligations after default by the Borrower or in collecting or attempting to collect from the Guarantor
under this Agreement.

 

     

     

    

 

3. The Guarantor hereby:

 

(a) Assents to all terms and
agreements heretofore or hereafter made by the Borrower with the Bank, including, but without limitation, agreements regarding the manner
of disposing of any collateral in a commercially reasonable manner;

 

(b) Waives all defenses based
upon suretyship or impairment of collateral, and consents that the Bank may, without in any way affecting the obligation of the Guarantor
under this Agreement:

 

(i) Exchange, release or surrender
to the Borrower or to any guarantor, pledger, or grantor any collateral, or waive, release, subordinate, or fail to perfect any security
interest, in whole or in part, now or hereafter held as security for any of the Obligations;

 

(ii) Waive or delay the exercise
of any of its rights or remedies against the Borrower or any other person or entity, including, without limitation, any other Guarantor;

 

(iii) With or without consideration,
release the Borrower or any other person or entity, including, without limitation, any other Guarantor;

 

(iv) Renew, extend, or modify
the terms of any of the Obligations or any instrument or agreement evidencing the same; and

 

(v) Apply payments by the Borrower,
the Guarantor, or any other person or entity, to any of the Obligations at the Bank’s discretion; and

 

(vi) In the event of the filing
of a petition (whether voluntary or involuntary) under any chapter of the federal Bankruptcy Code by or against the Borrower, participate
in the bankruptcy proceedings and exercise any and all rights set forth in clauses (i) through (v) above, including, without limitation,
voting for or against any plan of reorganization, consenting to the use of any cash collateral, consenting to the sale, use or lease of
any collateral securing any of the Obligations, and entering into any compromise or settlement regarding the Obligations.

 

(c) Waives all notices whatsoever
with respect to this Agreement or with respect to the Obligations, including, but without limitation, notice of:

 

(i) The Bank’s acceptance hereof
or its intention to act, or its action, in reliance hereon;

 

(ii) The present existence or
future incurring of any of the Obligations or any terms or amounts thereof or any change therein;

 

(iii) Any default by the Borrower
or any surety, pledgor, grantor of security, or guarantor, including, without limitation, any Guarantor; and

 

(iv) The obtaining or release
of any guaranty or surety agreement (in addition to this Agreement), pledge, assignment, or other security for any of the Obligations;

 

    2

     

    

 

(d) Agrees that, if at any
time all or any part of any payment previously applied by the Bank to any of the Obligations must be returned by the Bank for any reason,
whether upon claim of preference, fraudulent transfer or otherwise, and whether by court order, administrative order, or settlement, the
Guarantor remains liable for the full amount returned as if such amount had never been received by the Bank, notwithstanding any termination
of this Agreement or the cancellation of any note or other instrument or agreement evidencing the Obligations of the Borrower; and

 

(e) Waives notice of presentment,
demand, protest and notice of nonpayment in relation to any instrument evidencing any of the Obligations, and any other demands and notices
required by law, except as such waiver may be expressly prohibited by law, and waives any requirement that suit against the Guarantor
under this Agreement be brought within any period of time shorter than the general statute of limitations applicable to contracts under
seal. Furthermore, the Guarantor agrees that the statute of limitations applicable to this Agreement shall begin to run only upon the
Guarantor’s failure or refusal applicable to pay any of the Obligations following demand for payment by the Bank.

 

4. The liability of the Guarantor
under this Agreement is absolute and unconditional, without regard to the liability of any other person, and shall not in any manner be
affected by reason of any action taken or not taken by the Bank, which action or inaction is herein consented and agreed to, nor by the
partial or complete unenforceability or invalidity of any other guaranty or surety agreement, pledge, assignment or other security for
any of the Obligations. The liability of the Guarantor hereunder shall not be affected by, and this Agreement shall remain fully enforceable
against the Guarantor irrespective of, any defenses which the Borrower may have or assert with respect to any of the Obligations, including,
but without limitation, discharge in bankruptcy, confirmation of a plan of reorganization, composition with creditors, failure of consideration,
breach of warranty, statute of frauds, statute of limitations, accord and satisfaction, waiver, estoppel, release, usury, and fraud or
misrepresentation. No delay in making demand on the Guarantor for satisfaction of his liability hereunder shall prejudice the Bank’s right
to enforce such satisfaction. All of the Bank’s rights and remedies shall be cumulative and any failure of the Bank to exercise any right
hereunder shall not be construed as a waiver of the right to exercise the same or any other right at any time, and from time to time thereafter.

 

5. This Agreement shall be
a continuing one and shall be binding upon the Guarantor regardless of how long before or after the date hereof any of the Obligations
were or are incurred, unless the Guarantor has given the Bank written notice of his intention not to be liable for the payment of any
additional indebtedness of Borrower to Bank. Such notice shall have prospective effect only from the date it is actually received by the
Bank and shall not affect the obligation of the Guarantor under this Agreement with regard to Obligations then existing, extensions and
renewals thereof, interest then accrued and thereafter accruing thereon, and all costs, including attorney’s fees, incurred by the Bank
in collecting or attempting to collect the Obligations when due, whether by acceleration or at the original or any extended maturity date.

 

    3

     

    

 

6. The Guarantor hereby waives
and relinquishes any right of subrogation or other right of reimbursement from the Borrower or the Borrower’s estate and any other right
to payment from the Borrower or the Borrower’s estate, arising out of or on account of any sums paid or agreed to be paid by the Guarantor
under this Agreement, until such time as all obligations owing to the Bank by Borrower have been paid in full.

 

7. The Guarantor hereby wholly
subordinates all claims which the Guarantor may now or hereafter have against the Borrower to all debts and other obligations of the Borrower
referred to herein which the Borrower may now or hereafter owe the Bank, and assigns such claims to the Bank as additional collateral
for all Obligations of the Borrower guaranteed by the Guarantor under this Agreement. This agreement of subordination and assignment shall
survive the termination of this Guaranty Agreement, and shall remain in effect until all Obligations of the Borrower existing on the date
of such termination, and all interest, attorneys’ fees and other charges, if any, thereafter accruing thereon, are paid in full. Until
full payment is made to the Bank of the Obligations, the Guarantor agrees not to accept any payment or satisfaction of any kind on, or
any security for, any of the claims hereby subordinated. The Guarantor agrees that, if any such payment or security is received, the Guarantor
will hold the same in trust for the Bank, and deliver it to the Bank. The Guarantor agrees to execute such additional documents and instruments
as may in the future be requested by the Bank to effectuate the assignment and other provisions of this paragraph 7.

 

8. The Guarantor acknowledges
that the statute of limitations applicable to this Agreement shall begin to run only upon the Guarantor’s failure or refusal to pay any
of the Obligations following default in the payment or performance thereof by Borrower; provided, however, that if subsequent to such
default, the Bank reaches an agreement with Borrower on any terms causing the Bank to forbear in the enforcement of its claims against
the Guarantor, the statute of limitations shall be reinstated for its full duration until Borrower again defaults.

 

9. The Guarantor agrees that
this Agreement shall be governed by and construed in accordance with the substantive law of the State of Alabama, without regard to principles
of conflict of laws. The Guarantor hereby consents to the jurisdiction of any state or federal court holding in Montgomery County, Alabama,
and, to the extent permitted by applicable law, waives any objection based on venue or forum non conveniens with respect to any action
instituted in any such court and agrees that such court shall be the exclusive venue for any action under this Guaranty. Notwithstanding
the foregoing, the Bank shall have the right to bring any action or proceeding against the Guarantor or the Guarantor’s property in the
courts of any other jurisdiction the Bank deems necessary or appropriate in order to enforce the obligations of Guarantor under this Agreement.

 

10. Any notice or consent
required or permitted by this Agreement shall be in writing and shall be deemed delivered if delivered in person or if mailed, on the
earlier of the date actually received or the third business day after being sent by first class mail, postage prepaid, as follows, unless
such address is changed by written notice hereunder:

 

    4

     

    

 

		(a)	If to the Bank:

 

Regions Bank

201 Monroe Street, Suite 200

Montgomery, Alabama 36104

 

		(b)	If to the Guarantor:

 

Ocean Bio-Chem, Inc.

Attention Jeff Barocas

4041 S.W. 47th Avenue

Ft. Lauderdale, Florida 33314

 

11. This Agreement shall inure
to the benefit of the Bank, its successors and assigns, and to any person to whom the Bank may grant an interest in any of the Obligations,
and shall be binding upon the Guarantor and the Guarantor’s successors and assigns.

 

12. This Agreement is intended
to take effect as a document under seal.

 

13. The Guarantor agrees to
furnish to Bank within thirty (120) days after the end of each calendar year a current financial statement of Guarantor in reasonable
detail and form satisfactory to Bank and certified as true and correct by Guarantor. Additionally, Guarantor shall furnish to Bank consolidated
interim statements within sixty (60) days of each quarter end.

 

IN WITNESS WHEREOF, the Guarantor,
intending to be legally bound hereby, has duly executed this Guaranty Agreement on or as of the date and year first above written.

 

	 	Ocean Bio-Chem, Inc., 
		a Florida corporation
	 	 
	 	/s/ Jeffrey S. Barocas	(L.S.)
	 	Jeffrey
S. Barocas
	 	Chief Financial Officer 

 

    5

     

    

 

	STATE OF	FLORIDA
                                            	 	)
	 	 	 	:
	COUNTY OF	BROWARD	 	)

 

I, the undersigned authority,
a Notary Public in and for said County, in said State, hereby certify that Jeffrey S. Barocas, whose name as Chief Financial Officer of
Ocean Bio-Chem, Inc., a Florida Corporation is signed to the foregoing instrument, and who is known to me, acknowledged before me on this
day that, being informed of the contents of the above, he, as such President and with full authority, executed and delivered the same
voluntarily for and as the act of the corporation.

 

Given under my hand this the
22th day of July, 2021.

 

		(SEAL)	

	 	
	 	Notary Public
	 	My commission expires:   	May
    23, 2022

 

 

6

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