Document:

EX-10.3

 Exhibit 10.3 

Execution Version 
 SETTLEMENT
AGREEMENT 
 dated as of June 12, 2018 

Between SALESFORCE.COM, INC. and MORGAN STANLEY & CO. INTERNATIONAL PLC 

 
  

THIS SETTLEMENT AGREEMENT (this “Agreement”) with respect to the Warrants Confirmations (as defined below) is made as of
June 12, 2018, between salesforce.com, inc. (“Company”) and Morgan Stanley & Co. International plc (“Dealer”). 

WHEREAS, Dealer and Company entered into a Base Issuer Warrant Transaction (the “Base Warrants Transaction”) pursuant
to an ISDA confirmation dated as of March 12, 2013, which supplements, forms a part of, and is subject to an agreement in the form of the 2002 ISDA Master Agreement, pursuant to which Dealer purchased from Company 1,505,120 warrants (as
adjusted through the date hereof, 6,020,480 warrants) (as amended, modified, terminated or unwound from time to time, the “Base Warrants Confirmation”); 

WHEREAS, Dealer and Company entered into an Additional Issuer Warrant Transaction (the “Additional Warrants Transaction” and,
together with the Base Warrants Transaction, the “Warrants Transactions”) pursuant to an ISDA confirmation dated as of March 15, 2013, which supplements, forms a part of, and is subject to an agreement in the form of the 2002
ISDA Master Agreement, pursuant to which Dealer purchased from Company 225,768 warrants (as adjusted through the date hereof, 903,072 warrants) (as amended, modified, terminated or unwound from time to time, the “Additional Warrants
Confirmation” and, together with the Base Warrants Confirmation, the “Warrants Confirmations”); and 
 WHEREAS,
the Company has requested full settlement of the Warrants Transactions. 
 NOW, THEREFORE, in consideration of their mutual covenants herein
contained, the parties hereto, intending to be legally bound, hereby mutually covenant and agree as follows: 

1.    Defined Terms. Any capitalized term not otherwise defined herein shall have the meaning set forth for such
term in the Warrants Confirmations, as applicable. In the event of any inconsistency between the definitions set forth in the Warrant Confirmations and this Agreement, this Agreement shall govern. 

2.    Settlement. Notwithstanding anything to the contrary in the Warrants Confirmations, Company and Dealer agree
that the Warrants Transactions shall be settled in accordance with this Agreement in lieu of the settlement provisions set forth in the Warrants Confirmations, and that following such settlement, all of the respective rights and obligations of the
parties under the Warrants Confirmations shall be settled in full. For the avoidance of doubt, Sections 8(b) through 8(f) of each Warrants Confirmation shall apply as if the delivery of Shares pursuant to this Agreement were a delivery of Shares
pursuant to the applicable Warrants Confirmation. 
 3.    Deliveries. On the second Scheduled Trading Day
following the final Averaging Date or, if such day is not a Clearance System Business Day, on the next Clearance System Business Day immediately following such day (the “Unwind Settlement Date”), Company shall deliver to
Dealer the Warrant Settlement Amount through the Clearance System. The “Warrant Settlement Amount” shall mean a number of Shares determined by the Calculation Agent by reference to the Average VWAP using the table set forth in
Schedule A attached hereto (using linear interpolation if the Average VWAP is between two points on the table set forth on Schedule A or, otherwise, commercially reasonable extrapolation by Dealer, as applicable, to determine the Warrant Settlement
Amount for any Average VWAP not specifically appearing in Schedule A). 
 4.    Valuation. “Averaging
Date” means the First Averaging Date and each of the eight (8) Exchange Business Days (or fewer Exchange Business Days if Dealer gives notice of the same pursuant to Section 5 below) thereafter. The “Valuation
Date” shall be the final Averaging Date. “First Averaging Date” means the first Scheduled Trading Day immediately following the date hereof. “Average VWAP” means the arithmetic average of the VWAP Prices
for all Averaging Dates. “VWAP Price” for any Averaging Date means the Rule 10b-18 dollar volume weighted average price per Share for such day based on transactions executed during such day, as reported on Bloomberg page CRM.N
<equity> AQR SEC (or any successor thereto) or, in the event such price is not so reported on such day for any reason or is manifestly incorrect, as reasonably determined by the Calculation Agent using a volume weighted method. Notwithstanding
the foregoing, if any Averaging Date is a Disrupted Day, then the consequence shall be Modified Postponement as if this Agreement were a 

  
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“Transaction” under the Equity Definitions; provided that notwithstanding anything to the contrary in the Equity Definitions, if a Market Disruption Event occurs on any Averaging
Date, the Calculation Agent may, if appropriate in light of market conditions, regulatory considerations or otherwise, take any or all of the following actions: (i) postpone the final Averaging Date in accordance with Modified Postponement (as
modified herein) and/or (ii) determine that such Averaging Date is a Disrupted Day only in part, in which case the Calculation Agent may (x) determine the VWAP Price for such Disrupted Day based on Rule
10b-18 eligible transactions in the Shares on such Disrupted Day taking into account the nature and duration of such Market Disruption Event and (y) determine the Average VWAP based on an appropriately
weighted average instead of the arithmetic average described in the definition of “Average VWAP” above. The Calculation Agent shall promptly (but in no event later than 8:00 P.M. (New York City time) on such Disrupted Day) notify Company
if any Exchange Business Day scheduled to be an Averaging Date is a Disrupted Day, which notice shall specify the manner in which such scheduled Averaging Date and any other scheduled Averaging Dates will be postponed, if applicable. Any Exchange
Business Day on which, as of the date hereof, the Exchange is scheduled to close prior to its normal close of trading shall be deemed not to be an Exchange Business Day; if a closure of the Exchange prior to its normal close of trading on any
Exchange Business Day is scheduled following the date hereof, then such Exchange Business Day shall be deemed to be a Disrupted Day in full. Section 6.3(a) of the Equity Definitions is hereby amended (A) by deleting the words “during
the one hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the case may be,” in
clause (ii) thereof and (B) by replacing the words “or (iii) an Early Closure.” therein with “(iii) an Early Closure or (iv) a Regulatory Disruption.” and Section 6.3(d) of the Equity Definitions is
hereby amended by deleting the remainder of the provision following the term “Scheduled Closing Time” in the fourth line thereof. For the avoidance of doubt, prior to settlement of the respective rights and obligations of the parties under
the Warrants Confirmations pursuant to Section 2, Dealer shall be entitled to exercise its rights pursuant to the Warrant Confirmations (including any rights to terminate a Transaction) following an Event of Default, Termination Event,
Potential Adjustment Event, Extraordinary Event or otherwise provided that Dealer shall exercise such rights taking into account the amendments to each Transaction made pursuant to this Agreement. 

5.    Dealer Notice Obligation. As promptly as practicable following the close of trading on the final Averaging
Date, Dealer shall notify BNP Paribas via email to Janet Kim at janet.kim@us.bnpparibas.com (confirmation phone # 212-841-3653) and to
dl.nyk.ste@us.bnpparibas.com, with a copy to Company, that the final Averaging Date has occurred. 

6.    Agreements, Representations and Warranties of Company. Company represents and warrants to Dealer (and agrees
with Dealer in the case of Sections 6(g) through 6(k)) on the date hereof that: 
 (a) it has the power to execute this Agreement and any
other documentation relating to this Agreement to which it is a party, to deliver this Agreement and to perform its obligations under this Agreement and has taken all necessary action to authorize such execution, delivery and performance; 

(b) such execution, delivery and performance do not violate or conflict with any law applicable to it, any provision of its constitutional
documents, any order or judgment of any court or other agency of government applicable to it or any of its assets or any material contractual restriction binding on or affecting it or any of its assets; 

(c) all governmental and other consents that are required to have been obtained by it with respect to this Agreement have been obtained and
are in full force and effect and all conditions of any such consents have been complied with; 
 (d) its obligations under this Agreement
constitute its legal, valid and binding obligations, enforceable in accordance with their respective terms (subject to applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting creditors’ rights generally and
subject, as to enforceability, to equitable principles of general application (regardless of whether enforcement is sought in a proceeding in equity or at law)); 

(e) none of Company and its officers and directors is aware of any material nonpublic information regarding Company or the Shares; 

(f) it is not entering into this Agreement to create actual or apparent trading activity in the Shares (or any security convertible into or
exchangeable for the Shares) or to manipulate the price of the Shares (or any security convertible into or exchangeable for the Shares) or otherwise in violation of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”); 
 (g) neither Company nor any of its Affiliates or agents shall take any action that would cause Regulation M under the
Exchange Act (“Regulation M”) to be applicable to any purchases of Shares, or any security for which the Shares are a reference security (as defined in Regulation M), by Company or any of its affiliated purchasers (as defined in
Regulation M) on any Averaging Date; 

  
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 (h) None of Company, its affiliates or its affiliated purchasers has engaged in Rule 10b-18 purchases of blocks (“affiliates”, “affiliated purchaser”, “Rule 10b-18 purchase” and “blocks” each as defined in Rule 10b-18) pursuant to the once-a-week block exception contained in Rule 10b-18(b)(4) by or for
Company or any of its affiliated purchasers during each of the four calendar weeks preceding the date hereof and during the calendar week in which the date hereof occurs and none shall engage in purchases of such blocks prior to the end of the
Relevant Period; 
 (i) Company (A) will not during the Relevant Period make, or permit to be made, any public announcement (as defined
in Rule 165(f) under the Securities Act of 1933, as amended (the “Securities Act”)) of any Merger Transaction or potential Merger Transaction unless such public announcement is made prior to the opening or after the close of the
regular trading session on the Exchange for the Shares; (B) shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) notify Dealer following any such announcement that such announcement has been
made; and (C) shall promptly (but in any event prior to the next opening of the regular trading session on the Exchange) provide Dealer with written notice specifying (x) Company’s average daily Rule
10b-18 purchases (as defined in Rule 10b-18) during the three full calendar months immediately preceding the announcement date that were not effected through Dealer or
its affiliates and (y) the number of Shares purchased pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full calendar months preceding the announcement date. Such written
notice shall be deemed to be a certification by Company to Dealer that such information is true and correct. In addition, Company shall promptly notify Dealer of the earlier to occur of the completion of such transaction and the completion of the
vote by target shareholders. “Merger Transaction” means any merger, acquisition or similar transaction involving a recapitalization as contemplated by Rule 10b-18(a)(13)(iv) under the Exchange
Act; 
 (j) without the prior written consent of Dealer, Company shall not, and shall cause its affiliates and affiliated purchasers (each
as defined in Rule 10b-18) not to, directly or indirectly (including, without limitation, by means of a cash-settled or other derivative instrument) purchase, offer to purchase, place any bid or limit order
that would effect a purchase of, or commence any tender offer relating to, any Shares (or an equivalent interest, including a unit of beneficial interest in a trust or limited partnership or a depository share) or any security convertible into or
exchangeable or exercisable for Shares during the Relevant Period, except for purchases from its employees that are not “Rule 10b-18 purchases” as defined in Rule
10b-18(a)(13) under the Exchange Act; 
 (k) the provisions of Sections 9.8, 9.9, 9.11 (except that
the “Representation and Agreement” contained in Section 9.11 of the Equity Definitions shall be modified by excluding any representations therein relating to restrictions, obligations, limitations or requirements under applicable
securities laws arising as a result of the fact that Company is the Issuer of the Shares) and 9.12 of the Equity Definitions will be applicable as if this Agreement were a “Transaction” under the Equity Definitions and “Physical
Settlement” were applicable; 
 (l) the Company has entered into a Warrant Settlement Agreement with each of Bank of America, N.A. and
BNP Paribas (each, an “Other Dealer Warrant Settlement Agreement”), each of which is substantially in the form of this Agreement, and no Other Dealer Warrant Settlement Agreement shall have averaging dates that are Averaging Dates
under this Agreement; 
 (m) on the date hereof, and on each day during the Relevant Period, Company is not, or will not be,
“insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) and Company would be able to purchase a number of Shares equal to the aggregate Number of Shares under the
Warrants Transactions in compliance with the corporate laws of the jurisdiction of its incorporation; and 
 (n) the Shares of Issuer
initially issuable in consideration for termination of the Warrant pursuant to this Agreement have been duly authorized and, when delivered pursuant to this Agreement, will be validly issued, fully-paid and
non-assessable, and the issuance of such Shares will not be subject to any preemptive or similar rights. 

7.    Representations and Warranties of Dealer. Dealer represents and warrants to Company on the date hereof that:

 (a) it has the power to execute this Agreement and any other documentation relating to this Agreement to which it is a party, to deliver
this Agreement and to perform its obligations under this Agreement and has taken all necessary action to authorize such execution, delivery and performance; 

  
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 (b) such execution, delivery and performance do not violate or conflict with any law applicable
to it, any provision of its constitutional documents, any order or judgment of any court or other agency of government applicable to it or any of its assets or any material contractual restriction binding on or affecting it or any of its assets;

 (c) all governmental and other consents that are required to have been obtained by it with respect to this Agreement have been obtained
and are in full force and effect and all conditions of any such consents have been complied with; and 
 (d) its obligations under this
Agreement constitute its legal, valid and binding obligations, enforceable in accordance with their respective terms (subject to applicable bankruptcy, reorganization, insolvency, moratorium or similar laws affecting creditors’ rights generally
and subject, as to enforceability, to equitable principles of general application (regardless of whether enforcement is sought in a proceeding in equity or at law)). 

8.    Account for Delivery to Dealer: 

To be provided separately 
 9.
    Governing Law; Jurisdiction; Waiver of Trial by Jury. 
 (a)    This Agreement and any
claim, controversy or dispute arising under or related to this Agreement shall be governed by the laws of the State of New York (without reference to choice of law doctrine). The parties hereto irrevocably submit to the exclusive jurisdiction of the
courts of the State of New York and the United States Court for the Southern District of New York in connection with all matters relating hereto and waive any objection to the laying of venue in, and any claim of inconvenient forum with respect to,
these courts. 
 (b)    Each of Company and Dealer hereby irrevocably waives (on its own behalf and, to the extent
permitted by applicable law, on behalf of its stockholders) all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to this Agreement or the actions of Dealer,
Company or Dealer’s or Company’s Affiliates in the negotiation, performance or enforcement hereof. 
 10.
    Counterparts. This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if all of the signatures thereto and hereto were upon the same instrument. 

11.    No Reliance, etc. Company confirms that it has relied on the advice of its own counsel and other advisors
(to the extent it deems appropriate) with respect to any legal, tax, accounting, or regulatory consequences of this Agreement, that it has not relied on Dealer or its affiliates in any respect in connection therewith, and that it will not hold
Dealer or its affiliates accountable for any such consequences. 
 12.    Designation by Dealer. The provisions
of Section 8(l) of the Warrants Confirmations shall apply to the settlement contemplated hereby. 

13.    Additional Acknowledgements and Agreements. Company acknowledges and agrees that Dealer may, during the
period from the First Averaging Date to the final Averaging Date (the “Relevant Period”), purchase Shares in connection with this Agreement. Such purchases will be conducted independently of Company. The timing of such purchases by
Dealer, the number of Shares purchased by Dealer on any day, the price paid per Share pursuant to such purchases and the manner in which such purchases are made, including without limitation whether such purchases are made on any securities exchange
or privately, shall be within the absolute discretion of Dealer. It is the intent of the parties that this Agreement comply with the requirements of Rule 10b5-1(c)(1)(i)(B) of the Exchange Act, and the parties
agree that this Agreement shall be interpreted to comply with the requirements of Rule 10b5-1(c), and Company shall not take any action that results in this Agreement not so complying with such requirements.
Without limiting the generality of the preceding sentence, Company acknowledges and agrees that (A) Company does not have, and shall not attempt to exercise, any influence over how, when or whether Dealer effects any purchases of Shares in
connection with this Agreement, (B) during the period beginning on (but excluding) the date hereof and ending on (and including) the last day of the Relevant Period, neither Company nor its officers or employees shall, directly or indirectly,
communicate any information regarding Company or the Shares to any employee of Dealer or its Affiliates responsible for trading the Shares in connection with the transactions contemplated hereby, (C) Company is entering into this Agreement in
good faith and not as part of a plan or scheme to evade compliance with federal securities laws including, without limitation, Rule 10b-5 promulgated under the Exchange Act and (D) Company will not alter
or deviate from this Agreement or enter into or alter a corresponding or hedging transaction with respect to the Shares, it being 

  
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understood that the Other Dealer Warrant Settlement Agreements are not intended to be corresponding or hedging transactions. Company also acknowledges and agrees that any amendment, modification,
waiver or termination of this Agreement must be effected in accordance with the requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c) under the Exchange Act. Without
limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5 under
the Exchange Act, and no such amendment, modification or waiver shall be made at any time at which Company or any officer or director of Company is aware of any material nonpublic information regarding Company or the Shares. 

14.    Agreements and Acknowledgements Regarding Hedging. Company acknowledges and agrees that: 

(a) during the Relevant Period, Dealer and its Affiliates may buy or sell Shares or other securities or buy or sell options or futures
contracts or enter into swaps or other derivative securities in order to adjust its hedge position with respect to the Warrant Confirmations and this Agreement; 

(b) Dealer and its Affiliates also may be active in the market for Shares other than in connection with hedging activities in relation to the
Warrant Confirmations and this Agreement; 
 (c) Dealer shall make its own determination as to whether, when or in what manner any hedging
or market activities in Company’s securities shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Average VWAP and/or the VWAP Price; and 

(d) any market activities of Dealer and its Affiliates with respect to Shares may affect the market price and volatility of Shares, as well as
the Average VWAP and/or the VWAP Price, each in a manner that may be adverse to Company. 
 15.    Address for
Notices. Any notices required to be delivered by the Company to Dealer, or by Dealer to the Company, hereunder shall be delivered as provided in the Warrants Confirmations. 

16.    Amendments. An amendment, modification or waiver in respect of this Agreement will be effective only if in
writing (including a writing evidenced by facsimile transmission) and executed by each of the parties or confirmed by an exchange of telexes or by an exchange of electronic messages on an electronic messaging system. 

[Signature Page Follows] 

  
 5 

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

			
	MORGAN STANLEY & CO. INTERNATIONAL PLC
		
	By:	 	 /s/ P.A. Renaudin

	Name:	 	P.A. Renaudin
	Title:	 	Managing Director
	
	 MORGAN STANLEY & CO. LLC

as Agent

		
	By:	 	 /s/ Darren McCarley

	Name:	 	Darren McCarley
	Title:	 	Managing Director
	
	salesforce.com, inc.
		
	By:	 	 /s/ Joachim Wettermark

	Name:	 	Joachim Wettermark
	Title:	 	EVP, Treasurer

 [Signature Page to Settlement Agreement]Exhibit
10.11

 

FOURTH
AMENDMENT TO 

LOAN
AND SECURITY AGREEMENT AND LOAN DOCUMENTS

 

THIS
FOURTH AMENDMENT TO LOAN AND SECURITY AGREEMENT AND LOAN DOCUMENTS (“Amendment”) is entered into as of
March 30, 2018 (“Effective Date”), between PEN BRANDS LLC, an Ohio limited liability company f/k/a Nanofilm,
Ltd. (“Borrower”) and MBANK, a Michigan banking corporation, as assignee of Mackinac Commercial Credit,
LLC, a Michigan limited liability company (together with its successors and assigns, the “Lender”).

 

RECITALS

 

A.
Lender and Borrower entered into a Loan and Security Agreement dated April 4, 2014, as amended by a First Amendment to Loan and
Security Agreement dated effective as of April 4, 2015, a Second Amendment to Loan and Security Agreement dated effective as of
April 3, 2017, and a Third Amendment to Loan and Security Agreement and Loan Documents dated effective as of October 17, 2017
(as so amended, the “Loan Agreement”), together with various other documents, written agreements, certificates
and instruments between Lender and Borrower, among others, in connection therewith (collectively, as amended or modified from
time to time, the “Loan Documents”), including without limitation, the Amended and Restated Revolving Credit
Loan Note dated April 3, 2017, made by Borrower in favor of Lender, in the original principal amount of $1,500,000 (as amended
or modified from time to time, the “Revolving Note”). All capitalized terms not defined herein shall have the
same meanings ascribed to such terms in the Loan Agreement.

 

B.
Lender and Borrower have agreed to modify the terms and conditions of the Loan Agreement and other Loan Documents and Borrower
and Lender wish to set forth their agreement regarding the foregoing in this Amendment.

 

NOW,
THEREFORE, in consideration of the mutual covenants, conditions, and provisions as hereinafter set forth, the parties hereto
agree as follows:

 

1. Modifications
to Loan Agreement.

 

(a)
Maturity Date. The definition of “Maturity Date” as set forth in Paragraph 2(e) of the Term Sheet to the Loan
Agreement is hereby amended to the “Earlier of Demand or July 3, 2018”.

 

(b)
Renewal. Section 2(e) of the Loan Agreement is hereby amended and restated in its entirety to read as follows:

 

“(e)
Term; Automatic Renewal. The term of this Agreement and of the Loan shall be on Demand, but if Demand is not made, then
no later than the date set forth on the Term Sheet (the “Maturity Date”). Notwithstanding anything to the contrary
or inconsistent contained herein, provided no Default exists, the Maturity Date, as extended to July 3, 2018 pursuant to the Fourth
Amendment to Loan and Security Agreement and Loan Documents dated March 30, 2018, will automatically be further extended one time
for one (1) year (“Renewal Term”), unless either party notifies the other party in writing of its intent not
to so extend such Maturity Date at least sixty (60) days prior thereto. If such Maturity Date is extended, Borrower shall pay
to Lender a renewal fee in the amount of one percent (1.0%) of the Maximum Loan Amount, which shall be due and payable on or before
the beginning of the Renewal Term.”

 

(c)
Limited Guaranty. Simultaneously with this Amendment, the Borrower shall cause each of Scott E. Rickert and Jeanne Rickert
to execute and deliver a Limited Guaranty to Lender constituting their unconditional guaranty of the Obligations associated with
the Purchase Order Advances, in form and substance satisfactory to the Lender (the “Limited Guaranty”). In
connection therewith, the following amendments are hereby made to the Loan Agreement:

 

(i)
The definition of “Guarantor” in Section 1(o) of the Loan Agreement is hereby amended and restated to read as follows:

 

“Guarantor”
means, individually and collectively, the Individual Guarantor, the Corporate Guarantor, and the Limited Guarantors.

 

(ii)
The following definition is hereby added to Section 1 of the Loan Agreement in appropriate alphabetical sequence:

 

    	 

    	 

    

 

“Limited
Guarantor” shall mean each of Scott E. Rickert, an individual, and Jeanne Rickert, an individual, and “Limited
Guarantors” shall mean both of the foregoing.

 

2.
Modifications to Revolving Note. The definition of “Due Date” as set forth on the top of page 1 of the
Revolving Note is hereby amended to mean the “Maturity Date” as defined in the Loan Agreement.

 

3.
Modifications to Revolving Credit Loan Rider #1. 

 

(a)
Advances. The first paragraph of Section 2.A of the Revolving Credit Loan Rider #1 is hereby amended and restated in its
entirety to read as follows:

 

“Advances.
Subject to the terms of the Agreement, Lender may, in its sole discretion and upon Borrower’s request, make Advances to
Borrower in an amount (hereinafter referred to as the “Gross Availability”) which is the lesser of (a) the
Maximum Loan Amount as set forth on the Term Sheet or (b) an amount equal to the sum of (i) the applicable Percentage
Advance Rate as set forth on the Term Sheet times the face amount (less maximum discounts, credits and allowances which may
be taken by or granted to Receivable Debtors in connection therewith) of Eligible Receivables; plus (ii) the lesser of (1) the
Inventory Cap as set forth on the Term Sheet, or (2) the sum of (A) the applicable Percentage Advance Rate as set forth on the
Term Sheet times the value of Borrower’s Eligible Raw Materials (less freight and container costs) calculated at the lower
of cost or market value, plus (B) the applicable Percentage Advance Rate as set forth on the Term Sheet times the value of Borrower’s
Eligible Finished Goods (less freight and container costs) calculated at the lower of cost or market value; plus (iii) the Borrowing
Base; plus (iv) the balance in the Borrowing Base Cash Collateral Account; plus (v) upon the request of Borrower to include Eligible
Purchase Orders in the calculation hereof, the Purchase Order Advance Amount with respect to such Eligible Purchase Orders; provided
that (A) a request for a Purchase Order Advance Amount shall not be made more than three (3) times during the term of the Agreement,
(B) no Purchase Order Advance Amount may be included in the calculation of “Gross Availability” until Advances made
in reliance on any prior Purchase Order Advance Amount have been repaid in full, and (C) each Purchase Order Advance Amount may
only be included in the calculation of “Gross Availability” for a period of not more than thirty (30) days. Borrower
hereby agrees that failure to repay any Advances made in reliance upon a Purchase Order Advance Amount within such 30-day period
shall constitute a Default under the Agreement. All Advances hereunder may be borrowed, repaid and reborrowed by Borrower during
the term of the Agreement. All Advances and amounts payable pursuant to this Rider shall constitute part of the Obligations.”

 

(b)
Definitions. The following definitions are hereby added to Section 1 of the Revolving Credit Loan Rider #1 in appropriate
alphabetical sequence:

 

“Eligible
Purchase Order” shall mean a Purchase Order, which satisfies the following conditions as determined by Lender in its
sole discretion:

 

(i)
upon fulfillment of the Purchase Order, an Eligible Receivable shall be created that is due and owing from a Receivable Debtor
deemed creditworthy by the Lender, and upon fulfillment, the Purchase Order shall cease to be an Eligible Purchase Order;

 

(ii)
Borrower shall have delivered to Lender a copy of the Purchase Order and such other documents and instruments required by Lender
in connection therewith;

 

(iii)
Borrower shall have delivered to Lender a non-refundable advance fee in the amount of $1,500.00, with respect to the Purchase
Order Advance Amount request that includes that Eligible Purchase Order;

 

(iv)
the Inventory associated with such Purchase Order is not otherwise included in the calculation of “Advances” under
Section 2.A of this Rider; and

 

(v)
the Purchase Order is otherwise acceptable to the Lender.

 

“Purchase
Order” shall mean a binding purchase order received by Borrower from a customer for finished goods Inventory in the
ordinary course of business.

 

“Purchase
Order Advance Amount” means, the lesser of (i) $200,000 and (ii) the aggregate face amount of the Eligible Purchase
Orders supporting such Purchase Order Advance Amount.

 

    	 

    	 

    

 

4.
Representations. Borrower represents and warrants to Lender (and Lender relies upon such representations and warranties
in entering into this Amendment) as follows:

 

(a)
Organizational Documents; No Membership Changes. Since October 17, 2017, there have been no amendments to the Articles
of Organization or Operating Agreement of the Borrower;

 

(b)
Representations Still True. The representations in the Loan Agreement and contained in all other Loan Documents remain
true, and Borrower reaffirms such representations, in all respects as of the date hereof;

 

(c)
No Events of Default. No Event of Default has occurred and is continuing as of the date hereof and no event or condition
which, with the giving of notice, the lapse of time, or both, would constitute an Event of Default, has occurred and is continuing
as of the date hereof; and

 

(d)
Execution, Delivery and Performance. Execution, delivery and performance of this Amendment and any other documents and
instruments required under this Amendment or the Loan Agreement are within Borrower’s powers, have been duly authorized,
are not in contravention of law or the terms of the organizational documents of the Borrower, and do not require the consent or
approval of any governmental body, agency, or authority, and this Amendment and any other documents and instruments required under
this Amendment or the Loan Agreement when executed will be valid and binding in accordance with their terms.

 

5.
Conditions to Effectiveness. The effectiveness of this Amendment shall be subject to satisfaction of the following
conditions:

 

(a)
Amendment Documents. Borrower shall have executed and delivered, or cause to be executed and delivered to Lender, this
Amendment (including the acknowledgement and agreement to the amendments contained herein of the Guarantors), the Limited Guaranty,
and all other documents and instruments required by Lender in connection with this Amendment, all to be in form and content satisfactory
to Lender.

 

(b)
Lender Expenses. Borrower shall have paid to Lender all of Lender’s fees, costs and expenses (including without limitation,
attorneys’ fees) incurred in connection with the preparation, negotiation and closing of this Amendment.

 

6.
Effect of Amendment. Except for the amendments set forth in this Amendment, the Loan Agreement and all other Loan Documents
shall remain unchanged and in full force and effect. Nothing in this Amendment is intended, or shall be construed, to constitute
a novation or an accord and satisfaction of any of Borrower’s obligations under or in connection with the Loan Agreement
or any other Loan Document.

 

7.
Miscellaneous.

 

(a)
Entire Agreement. This Amendment, together with the Loan Agreement and other Loan Documents constitutes the entire agreement
and understanding among the parties relating to the subject matter hereof, and supersedes all prior proposals, negotiations, agreements
and understandings relating to such subject matter. In entering into this Amendment, Borrower acknowledges that it is relying
on no statement, representation, warranty, covenant or agreement of any kind made by the Lender or any employee or agent of Lender,
except for the agreements of Lender set forth herein.

 

(b)
Binding Effect. This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective
successors and assigns, provided that no party other than Lender may assign any of its rights or obligations hereunder without
the prior written consent of Lender.

 

(c)
Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
MICHIGAN APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE.

 

(d)
Counterparts; Facsimile or Electronic Signatures. This Amendment may be executed in multiple counterparts, each of which
shall be deemed to be an original and all of which when taken together shall constitute one and the same instrument. A facsimile
or PDF signature shall be effective as an original signature.

 

[Signatures
on following page]

 

    	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered as of the date first hereinabove
set forth.

 

BORROWER:

 

PEN
BRANDS LLC,

an
Ohio limited liability company

 

	By:
    	/s/
    Anne Marie Thomas	 
	 	Anne
    Marie Thomas	 
	Title:	President	 

 

	LENDER:	 
	 	 	 
	MBANK,	 
	a
    Michigan banking corporation	 
	 	 	 
	By:	/s/
    Edward P. Lewan	 
	 	Edward
    P. Lewan	 
	Title:	President	 

 

ACKNOWLEDGEMENT
OF GUARANTOR

 

Scott
E. Rickert, guarantor under that certain Validity Guaranty dated April 4, 2014 in favor of Lender (the “Validity Guaranty”),
and PEN, Inc., a Delaware corporation, a guarantor under that certain Corporate Guaranty dated May 1, 2015 (the “Corporate
Guaranty”), each acknowledge the above Amendment and agrees that their respective Guaranty shall continue in full force
and effect.

 

	 	GUARANTOR:
	 	 	 
	 	/s/ Scott Rickert
	 	Scott E. Rickert, an individual
	 	 	 
	 	PEN, INC.
	 	a Delaware corporation
	 	 	 
	 	By:	/s/
    Scott Rickert
	 	 	Scott
    E. Rickert 
	 	Title:	Chief
    Executive Officer

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