Document:

EXHIBIT 4.1

       

      DESCRIPTION OF REGISTRANT’S SECURITIES

       

      As of September 30, 2020, Janel Corporation (the “Company”) had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: common stock, par value $0.001 per shares.

       

      
        Common Stock

        

        

      

      
        Janel Corporation (the “Company”) is authorized to issue up to 4,500,000 shares of common stock, par value $0.001 per share, of which 898,652 shares were issued and outstanding as of September 30,
          2020. The holders of common stock are entitled to one vote for each share held of record on all matters to be voted on by shareholders. There is no cumulative voting with respect to the election of directors, with the result that the holders of
          more than 50% of the shares of common stock can elect all of the directors. The Company’s principal officers and directors, Dominique Schulte, John J. Gonzalez II, Gerard van Kesteren, Brendan J. Killackey, Gregory J. Melsen and Vincent A. Verde,
          collectively own 71.6% of the issued and outstanding common stock and therefore can elect all of the directors. The holders of common stock are entitled to receive dividends when and if declared by the board of directors of the Company out of
          funds legally available therefore. In the event of liquidation, dissolution or winding up of the company, the owners of common stock are entitled to share all assets remaining available for distribution after the payment of liabilities and after
          provision has been made for each class stock, if any, having a preference over the common stock as such. The common stock has no conversion, preemptive or other subscription rights, and there are no redemption provisions applicable to the common
          stock.

      

      
        

        

        Preferred Stock

        

        

      

      
        The board of directors of the Company is authorized to issue up to 100,000 shares of preferred stock, par value $0.001 per share, in one or more series and to fix the rights, preferences, privileges
          and restrictions thereof, including the dividend rights, dividend rate, conversion rights, voting rights, terms of redemption (including sinking fund provisions), redemption price or prices, liquidations preferences and the number of shares
          constituting any series or the designations of such series, without any further vote or action by the stockholders. It is possible for the board of directors to issue shares of such preferred stock in a manner which would make acquisition of
          control of the company, other than as approved by the board of directors of the Company, exceedingly difficult.

      

      
        

        

        Series B Convertible Preferred Stock

        

        

      

      
        As of September 30, 2020, the Company had outstanding 31 shares of Series B Convertible Preferred Stock, each of which is convertible into ten shares of the Company’s common stock at any time.
          The holders of the Series B Convertible Preferred Stock have no voting rights or powers to vote upon the election of directors, except the holders shall have voting rights and powers to vote upon any matter regarding the Series B Convertible
          Preferred Stock rights and preferences. The conversion price shall be subject to adjustment upon the happening of certain events such as stock splits of its common stock, combinations, certain dividends and distributions and reclassification,
          merger, consolidation or sale of assets. The Series B Convertible Preferred Stock does not carry any dividend rights. In connection with any organic change, the holders of Series B Convertible Preferred Stock will have the right to acquire and
          receive in lieu or in addition to the shares of common stock receivable upon conversion of the preferred stock, such shares of stock, securities or assets that would have been issued in connection with such organic change with respect to or in
          exchange for the number of shares of common stock that would have been receivable upon the conversion of the holder’s preferred shares into common stock prior to such organic change. In the event of liquidation, dissolution or winding up of the
          Company, the holder of the Series B Convertible Preferred Stock are entitled to share all assets remaining available for distribution after the payment of liabilities on a pari passu basis with the
          holders of the common stock of the Company.

      

      
        

        

      

      
        
          

      

      
        Series C Cumulative Preferred Stock

        

        

        As of September 30, 2020, the Company had outstanding 19,760 shares of Series C Cumulative Preferred Stock.

      

      

      

      Holders of Series C Cumulative Preferred Stock do not have the right to vote on actions taken by stockholders of the Company, except that the vote of the holders of a majority of the then-outstanding
        Series C Cumulative Preferred Stock is required (a) to adopt amendments to the Company’s Amended and Restated Articles of Incorporation or bylaws which amendments would adversely affect the Series C Cumulative Preferred Stock or (b) to effect a
        liquidation, dissolution or winding up of the Company. In the event of liquidation, Series C Holders shall be paid an amount equal to the Original Issuance Price, plus any accrued but unpaid dividends thereon. Shares of Series C Cumulative
        Preferred Stock may be redeemed (1) by the Company at any time upon notice and payment of the Original Issuance Price, plus any accrued but unpaid dividends thereon (“Redemption Price”) or (2) by the Series C Holders at their option beginning on
        the fourth anniversary of the issuance of the Series C Cumulative Preferred Stock for an amount equal to the Redemption Price.

      

      

      The holders of the Series C Cumulative Preferred Stock shall be entitled to receive, out of funds legally available therefor, annual dividends when, as and if declared by the Board, at the rates
        heretofore set forth from time to time in the Certificate of Designation for the Series C Cumulative Preferred Stock, and commencing on October 17, 2017, at the annual rate of five percent (5.0%) with a one percent (1%) increase on each January 1st beginning January 1, 2019 and on each January 1 thereafter for four years, such that: (a) as of January 1, 2019 the annual dividend shall be at the rate of six percent
        (6.0%), (b) as of January 1, 2020 the annual dividend shall be at the rate of seven percent (7.0%), (c) as of January 1, 2021 the annual dividend shall be at the rate of eight percent (8.0%) and (d) as of January 1, 2022, and for every year
        thereafter, the annual dividend shall be at the rate of nine percent (9.0%). Such dividends are (i) prior and in preference to any declaration or payment of any dividend or other distribution on Common Stock (other than a dividend payable in shares
        of Common Stock) or on any other class or series of capital stock ranking junior to the Series C Cumulative Preferred Stock with respect to dividends, (ii) pari passu with any other shares of Preferred
        Stock entitled to participate pari passu with the Series C Cumulative Preferred Stock with respect to dividends and (iii) subject to the rights of any series of Preferred Stock that ranks, with respect to
        dividends, senior to the Series C Cumulative Preferred Stock. Such dividends shall accrue on each share of Series C Cumulative Preferred Stock on a daily basis from the Original Issuance Date whether or not earned or declared and whether or not
        there shall be net assets or profits of the corporation legally available for the payment of such dividends. Such dividends shall be cumulative, so that if such dividends with respect to any previous or current dividend period at the rate provided
        for herein have not been paid on all shares of Series C Cumulative Preferred Stock at the time outstanding, the deficiency shall be fully paid on such shares before any distribution shall be paid on, or declared and set apart for, Common Stock or
        any other class or series of capital stock ranking junior to the Series C Cumulative Preferred Stock with respect to dividends.

      
         

        Anti-Takeover Effects of the Company’s Articles of Incorporation and By-Laws

         

        None

         

        Transfer Agent

         

        The Company’s transfer agent for shares of its Common Stock is Broadridge Corporate Issuer Solutions.

      

       

      Market for the Company’s Common Stock

       

      The Company’s common stock is traded on the Pink tier of the OTC market under the symbol “JANL.”Exhibit 10.39

  

   

    

  
    
      AMENDMENT NO. 2 TO CREDIT AGREEMENT

    

    
      

      

    

    
      This Amendment No. 2 to Credit Agreement (“Amendment No. 2”) dated effective as of July 1, 2020, entered into by and among INDCO, INC.,
        a Tennessee corporation (“Borrower), and FIRST MERCHANTS BANK, an Indiana state banking institution, f/k/a First Merchants Bank, National Association (the “Lender”).

       

    

    
      W I T N E S S E T H :

    

    
      

      

    

    
      WHEREAS, the Borrower and the Lender are parties to that certain Credit Agreement dated as of February 29, 2016, as amended by that certain Amendment No. 1 to Credit Agreement
        dated August 30, 2019 (hereinafter referred to as “Agreement”); and

    

    
      

      

    

    
      WHEREAS, the Lender and the Borrower desire to amend the financial accommodations previously extended by the Lender on the terms and subject to the conditions as set forth in
        this Amendment No. 2.

    

    
      

      

    

    
      NOW, THEREFORE, in consideration of the premises, the mutual covenants hereinafter contained, and other good and valuable consideration, the receipt and sufficiency of which
        are hereby acknowledged, the parties agree as follows:

    

    
      

      

    

    
      Section 1.   Effect of this Amendment No. 2.  This Amendment No. 2 shall not change, modify, amend or revise the terms, conditions and provisions of the
        Agreement, the terms and provisions of which are incorporated herein by reference, except as expressly provided herein and agreed upon by the parties hereto.  This Amendment No. 2 is not intended to be nor shall it constitute a novation or accord
        and satisfaction of the outstanding instruments by and between the parties hereto.  Borrower and Lender agree that, except as expressly provided herein, all terms and conditions of the Agreement shall remain and continue in full force and effect. 
        The Borrower acknowledges and agrees that the indebtedness under the Agreement remains outstanding and is not extinguished, paid, or retired by this Amendment No. 2, or any other agreements between the parties hereto prior to the date hereof, and
        that Borrower is and continues to be fully liable for all obligations to the Lender contemplated by or arising out of the Agreement.  Except as expressly provided otherwise by this Amendment No. 2, the credit facilities contemplated by this
        Amendment No. 2 shall be made according to and pursuant to all conditions, covenants, representations and warranties contained in the Agreement.

      

      

      Section 2.   Definitions.  Terms defined in the Agreement which are used herein shall have the same meaning as set forth in the Agreement unless otherwise
        specified herein.

      

      

      Section 3.   Amendments of Agreement.  Subject to the satisfaction of the conditions precedent set forth in Section 5 herein, the Agreement is amended as
        follows:

      

      

      (a)          The following terms appearing at Subsection 1.1 of the Agreement are added, or amended and replaced with the
          following:

      

      

    

    
      Collateral Documents  means, collectively, the Security Agreement, the Mortgage, the Environmental Indemnity, any Collateral Access Agreement, Pledge Agreement, each
        control agreement and any other agreement or instrument pursuant to which the Borrower, any Subsidiary or any other Person grants or purports to grant collateral to the Lender or otherwise relates to such collateral.

       

      

    

    
      

      1

      
        

      

    

    
      EBITDAR means, for any period, net income for such period, plus (a) without duplication and to the extent deducted in determining net income for such period, the sum of
        (i) Interest Expense for such period, (ii) income tax expense for such period, (iii) all amounts attributable to depreciation, depletion and amortization expense for such period, (iv) rent expense, (v) any extraordinary charges for such period
        including reasonable costs associated with the acquisition of the borrower, and (vi) any other non-cash charges for such period (but, excluding any non-cash charge in respect of an item that was included in net income in a prior period), minus (b)
        without duplication and to the extent included in net income, any extraordinary gains and any non-cash items of income for such period, all calculated in accordance with GAAP.

       

    

    
      Fixed Charge Coverage Ratio means, with respect to any Fiscal Quarter measured on a rolling four quarter basis, a ratio, the numerator of which is Borrower’s EBITDAR
        minus taxes and distributions paid, and the denominator of which is (i) payments made or scheduled to be made with respect to amortization payments of the principal portion and interest expense of the Term Loan and amortization payments of the
        principal portion and interest expense of all other indebtedness for borrowed money of the Borrower, and (ii) unfinanced capital expenditures. The Fixed Charge Coverage Ratio shall exclude the one-time dividend and bonus-in-lieu-of dividend made to
        the owners from loan funds and cash on hand at or around August 29, 2019 (the “One-Time Dividend”).

      

      

    

    
      Loan or Loans means, as the context may require, the Revolving Loans, the Term Loan, and Mortgage Loan, together with all renewals and substitutions thereof.

       

      Mortgage means that certain Mortgage, Security Agreement, Assignment of Leases and Rents and Fixture Filing dated July 1, 2020, executed by Borrower for the benefit of
        Lender.

       

      Mortgage Loan – see Section 2.01(d).

       

      Mortgage Loan Commitment means $680,000.00.

       

      Mortgage Loan Maturity Date means July 1, 2025.

       

      Real Estate means that certain real estate located at 4040 Earnings Way, New Albany, Indiana, as more particularly described in Exhibit A to the Mortgage.

       

      Total Funded Debt to EBITDAR Ratio means, with respect to any Fiscal Quarter measured on a rolling four quarter basis, a ratio, the
        numerator of which is Borrower’s total interest-bearing Debt, and the denominator of which is EBITDAR.

       

      (b)          Subsection 2.01(d) is hereby added to the Agreement as follows:

       

      (d)          Mortgage Loan Commitment.  The Lender agrees to make a loan to the Borrower (the “Mortgage Loan”) on July
          1, 2020, in the amount of the Mortgage Loan Commitment.  The Commitment of the Lender to make the Mortgage Loan shall expire concurrently with the making of the Mortgage Loan.  The entire unpaid balance of the Mortgage Loan shall be immediately
          due and payable in full in immediately available funds on the Mortgage Loan Maturity Date if not sooner paid in full.

       

      (c)          Subsection 2.03(c) is hereby added to the Agreement as follows:

       

    

    
      (c)          Mortgage Loan.  The proceeds of the Mortgage Loan will be used to finance the acquisition of the Real Estate.

        

    
      (d)          Subsection 4.01(iii) is hereby added to the Agreement as follows:

       

    

    
      

      2

      
        

      

    

    
      	

            	(iii)	
              at all times while the Mortgage Loan is outstanding, the Mortgage Loan shall accrue interest at a fixed rate per annum equal to four and 19/100 percent (4.19%).

            

       

    

    
      (e)          Subsection 4.02(d) is hereby added to the Agreement as follows:

       

    

    
      (d)          Regarding the Mortgage Loan, commencing on August 1, 2020, Borrower shall make equal monthly payments of
          principal (based on a twenty-year amortization) and interest in the amount of Four Thousand One Hundred Eighty-Nine and 06/100 Dollars ($4,189.06), and thereafter on the first business day of each month. Upon the Mortgage Loan Maturity Date, all
          unpaid principal, accrued but unpaid interest, and reimbursable expenses shall be due and payable in full.

       

      After maturity, and at any time an Event of Default exists, accrued interest on all Loans shall be payable on demand.

       

      (f)          Subsection 6.02(a) is hereby amended and restated with the following:

       

    

    
      	

            	(a)	
              Voluntary Prepayments.  The Borrower may from time to time prepay the Loans in whole or in part; provided that the Borrower shall give the Lender notice thereof not later than 11:00 A.M., Indianapolis
                time, on the day of such prepayment (which shall be a Business Day), specifying the Loans to be prepaid and the date and amount of prepayment, and in the case of the Mortgage Loan, accompany the prepayment (other than any prepayment due to
                the application of insurance proceeds or condemnation awards as the Mortgage requires) with a prepayment premium of two percent (2%) multiplied by the principal amount paid (“Prepayment Premium”). If Borrower makes a partial prepayment, the
                amount prepaid will be applied to installments of principal in the inverse order of maturity.

            

       

    

    
      (g)          Subsection 11.14(a) of the Agreement is amended and restated with the following:

       

    

    
      	 	
              (a)

            	
              Maximum Total Funded Debt to EBITDAR Ratio.  Not permit the Total Funded Debt to EBITDAR Ratio, tested quarterly, to be greater than the amounts for the Fiscal Quarters ending as
                indicated below:

            

      

      

    

    
      
        
          	
                  Fiscal Quarter ending

                	
                  Maximum Total Funded Debt to EBITDA Ratio

                
	
                  3/31/20 – 12/31/21

                	
                  3.25 to 1.0

                
	
                  3/31/22 – 6/30/22

                	
                  2.75 to 1.0

                
	
                  9/30/22 and thereafter

                	
                  2.50 to 1.0

                

        

         

    

    
      

      

      

    

    

    
       

        

       

        

       

        

      Section 4.  Commitment Fee; Reimbursement of Expenses and Legal Fees.  The Borrower agrees to pay to the Lender a commitment fee associated with the Mortgage
        Loan Commitment in the amount of $1,000.00 as of the execution of this Amendment No. 2, which amount shall not be refundable, in whole or in part, for any reason.  Additionally, all out-of-pocket expenses of the Lender, including without
        limitation, filing fees, recording fees and reasonable legal fees and disbursements, associated with the preparation of this Amendment No. 2 and all other related Loan Documents are to be paid by Borrower promptly upon demand therefor.

    

    
      

      

    

    
      Section 5.   Conditions Precedent.  This Amendment No. 2 shall become and be deemed effective in accordance with its terms immediately upon the Lender receiving:

    

    
      

      

    

    
      (a)          Two (2) copies of this Amendment No. 2 duly executed by an authorized officer or other representative of the
          Borrower and the Lender.

       

        

    

    
      

      3

      
        

      

    

    
      (b)          One (1) copy of the Note evidencing the Mortgage Loan duly executed by an authorized officer or other
          representative of the Borrower.

      

      

      (c)          Two (2) copies of the Consent and Confirmation of Guaranty executed by Guarantor.

      

      

      (d)          Two (2) copies of the Mortgage duly executed by an authorized officer or other representative of the Borrower.

      

      

      (e)          Two (2) copies of the Mortgagor’s Affidavit duly executed by an authorized officer or other representative of
          the Borrower.

      

      

      (f)          Two (2) copies of the Environmental Indemnity duly executed by an authorized officer or other representative of
          the Borrower and Guarantor.

      

      

      (g)          Receipt of an appraisal of the Real Estate acceptable to Lender.

      

      

      (h)          Receipt of a title commitment related to the Real Estate acceptable to Lender.

    

    
      

      

      (i)           Receipt of a survey related to the Real Estate acceptable to Lender.

      

      

      (j)           Receipt of an Environmental Phase I related to the Real Estate acceptable to Lender.

      

      

      (k)          Receipt of a flood certification related to the Real Estate acceptable to Lender.

      

      

      (l)           Evidence of insurance related to the Real Estate acceptable to Lender.

      

      

      (m)         Payment of the fees and expenses as set forth in Section 4 hereof.

    

    
      

      

      (n)          Such other documents and items as the Lender may reasonably request.

    

    
      

      

    

    
      Section 6.   Representations and Warranties of the Borrower.  The Borrower hereby represents and warrants, in addition to any other representations and
        warranties contained herein, in the Agreement, the Loan Documents (as defined in the Agreement) or any other document, writing or statement delivered or mailed to the Lender or its agent by the Borrower, as follows:

    

    
      

      

    

    
      (a)        This Amendment No. 2 constitutes a legal, valid and binding obligation of the Borrower enforceable in accordance
          with its terms, subject to bankruptcy, insolvency, reorganization, moratorium and other laws affecting the rights of creditors generally as well as the exercise of judicial discretion in accordance with general principles of equity.  The Borrower
          has taken all necessary and appropriate action for the approval of this Amendment No. 2 and the authorization of the execution, delivery and performance thereof.

    

    
      

      

    

    
      (b)          As of the date hereof, there is no Event of Default under the Agreement, the Amendment No. 2 or the Loan
          Documents.

    

    
      

      

    

    
      (c)          The Borrower hereby specifically confirms and ratifies its obligations, waivers and consents under each of the
          Loan Documents.

    

    
      

      

    

    
      (d)         Except as specifically amended herein, all representations, warranties and other assertions of fact contained in
          the Agreement and the Loan Documents continue to be true, accurate and complete in all material respects.

       

        

    

    
      

      4

      
        

      

    

    
      (e)          There have been no changes to the organizational documents or the identities of the officers or managers of the
          Borrower since execution of the Agreement.

    

    
      

      

    

    
      (f)           Borrower acknowledges that the definition “Loan Documents” shall include this Amendment No. 2 and all the
          documents executed contemporaneously herewith.

    

    
      

      

    

    
      Section 7.  Affirmative Covenants.  By entering into this Amendment No. 2, Borrower further specifically undertakes to comply with the obligations, terms and
        covenants as contained in the Agreement and agrees to comply therewith as such relate to the amended credit facilities and accommodations as provided to the Borrower pursuant to the terms of this Amendment No. 2.

    

    
      

      

    

    
      Section 8.  Governing Law.  This Amendment No. 2 has been executed and delivered and is intended to be performed in the State of Indiana and shall be governed,
        construed and enforced in all respects in accordance with the substantive laws of the State of Indiana.

    

    
      

      

    

    
      Section 9.   Headings.  The section headings used in this Amendment No. 2 are for convenience only and shall not be read or construed as limiting the substance
        or generality of this Amendment No. 2.

    

    
      

      

    

    
      Section 10. Survival.  All representations, warranties, and covenants of the Borrower herein or any certificate, agreement or other instrument delivered by or on
        its behalf under this Amendment No. 2 shall be considered to have been relied upon by the Lender and shall survive the making of and amendments to the Loans.  All statements and any such certificate or other instrument shall constitute warranties
        and representations hereunder by the Borrower, as the case may be.

    

    
      

      

    

    
      Section 11.  Counterparts.  This Amendment No. 2 may be signed in one or more counterparts, each of which shall be considered an original, with the same effect
        as if the signatures were upon the same instrument.

    

    
      

      

    

    
      Section 12.  Modification.  This Amendment No. 2 may be amended, modified, renewed or extended only by written instrument executed in the manner of its original
        execution.

    

    
      

      

    

    
      Section 13. Waiver of Certain Rights.  The Borrower waives acceptance or notice of acceptance hereof and agrees that the Agreement, this Amendment No. 2 and all
        of the other Loan Documents shall be fully valid, binding, effective and enforceable as of the date hereof, even though this Amendment No. 2 and any one or more of the other Loan Documents which require the signature of the Lender, may be executed
        by and on behalf of the Lender on other than the date hereof.

    

    
      

      

    

    
      Section 14. Waiver of Defenses and Claims.  In consideration of the financial accommodations provided to the Borrower by the Lender as contemplated by this
        Amendment No. 2, Borrower hereby waives, releases and forever discharges the Lender from and against any and all rights, claims or causes of action against the Lender arising under the Lender’s actions or inactions with respect to the Loan
        Documents or any security interest, lien or collateral in connection therewith as well as any and all rights of set off, defenses, claims, causes of action and any other bar to the enforcement of the Loan Documents which exist as of the date
        hereof.

      

      

    

    
      IN WITNESS WHEREOF, the parties have caused this Amendment No. 2 to Credit Agreement to be executed by their respective duly authorized officers or other representatives as of the date and year
        first written above.

       

    

    
      [REMAINDER OF PAGE INTENTIONALLY BLANK – SIGNATURE PAGE FOLLOWS]

       

    

    
      

      5

      
        

      

    

    SIGNATURE PAGE – AMENDMENT NO. 2 TO CREDIT AGREEMENT

    
       

    

    	 	
            INDCO, INC.,

          	 
	 	
            a Tennessee corporation

          	 
	 	 	 	 
	 	
            By:

          	
            /s/ Mark Hennis

          	 
	 	 	
            C. Mark Hennis, President

          	 

    
      

      

      
        	STATE OF	

              	
                
                  )

                

              	
                 

              	
                 

              
	 	

              	
                
                  )

                

              	SS:	 
	COUNTY OF	

              	
                
                  )

                

              	 	 

      

    

    

    

    
      Before me, a Notary Public in and for said County and State, personally appeared C. Mark Hennis, the President of INDCO, Inc., a Tennessee corporation, who, having been duly
        sworn, acknowledged the execution of the foregoing instrument for and on behalf of such company as such officer.

    

    
      

      

    

    
      WITNESS, my hand and Notarial Seal this ____ day of _____________, 2020.

      

      

    

    	
            My Commission Expires:

          	 	 	
             /s/ Kristina Wilberding

          	 
	 	 	
            Notary Public

          	 
	

          	 	 	 	 
	 	 	 	 	 
	
            My County of Residence:

          	 	 	
            /s/ Kristina Wilberding

          	 
	 	 	
            Printed

          	 
	
            

            

          	 	 	 	 

    

    
      

      6

      
        

      

    

     SIGNATURE PAGE – LENDER – CREDIT AGREEMENT

    
       

      

    

    	 	
            FIRST MERCHANTS BANK,

          
	 	
            an Indiana state banking institution

          
	 	 	 	 
	 	
            By:

          	 	
            /s/ Jeff Pangburn

          
	 	 	
            Jeff Pangburn, Vice President

          

    
      

      

      

      

      7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00319-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00319-of-00352.parquet"}]]