Document:

ex_331010.htm

Exhibit 4.6

 

 

TERM NOTE

 

	$6,000,000.00	DATED effective as of July 31, 2019
	 	Minneapolis, Minnesota

        

FOR VALUE RECEIVED, the undersigned, THE TRU SHRIMP COMPANY, a Delaware corporation (the “Borrower”), HEREBY PROMISES TO PAY to the order of EAGLE ENERGY, LLC, a South Dakota limited liability company (the “Lender”), the principal amount of SIX MILLION AND NO/100 DOLLARS ($6,000,000.00) in lawful money of the United States of America and in Immediately Available Funds not later than 3:00 P.M. (Minnesota time) on the dates called for under this Term Note to the Lender (i) by wire transfer pursuant to written instructions provided by the Lender to the Borrower, (ii) at the Lender’s address set forth on the signature page to the Loan Agreement (defined below), or (iii) at such other address as the Lender directs in writing, in quarterly installments of Three Hundred Thousand Dollars ($300,000.00) each on the first day of March, June, September and December in each year, commencing September 1, 2021, and ending June 1, 2026 (the “Maturity Date”), provided, however, that the last such installment shall be in the amount necessary to repay in full the unpaid principal amount of this Term Note, together with all accrued and unpaid interest thereon, and to pay interest on the unpaid principal amount of this Term Note from the date of this Term Note until such principal amount becomes due (computed on the basis of a year of 360 days for the actual number of days elapsed) at a rate per annum equal to six and ninety-five hundredths percent (6.95%), payable on the first day of March, June, September and December in each year, commencing September 1, 2019, and ending on the Maturity Date, at which time all accrued and unpaid interest shall be due and payable in full. Upon an Event of Default, the Loan shall bear interest until paid in full at three and five hundredths percent (3.05%) above the rate which would otherwise be applicable, and shall be payable on demand from the date of such non-payment until such amount is paid in full.

 

If any installment of this Term Note becomes due and payable on a day other than a Business Day, the maturity thereof shall be extended to the next succeeding Business Day, and interest shall be payable thereon at the rate herein specified during such extension.

 

This Term Note is the Term Note referred to in, and is entitled to the benefits of, the Loan Agreement, dated effective as of July 31, 2019, by and between the Borrower and the Lender (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”). All capitalized terms used herein and not otherwise defined shall have the meanings ascribed to such terms in the Loan Agreement. The Loan Agreement, among other things, contains provisions for acceleration of the maturity of this Term Note upon the happening of certain stated events and also for prepayments on account of principal hereof prior to the maturity of this Term Note upon the terms and conditions specified in the Loan Agreement. This Term Note is secured by the Security Documents referred to in the Loan Agreement, reference to which is hereby made for a description of the collateral provided for under the Security Documents and the rights of the Borrower and the Lender with respect to such collateral.

 

The Borrower waives diligence, presentment, demand, protest, notice of intent to accelerate, notice of acceleration, notice of nonpayment, notice of protest, notice of dishonor, and any other notice of any kind. No failure on the part of the Lender to exercise, and no delay in exercising, any right, power or privilege hereunder shall operate as a waiver thereof or a consent thereto; nor shall a single or partial exercise of any such right, power or privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

THE VALIDITY, CONSTRUCTION AND ENFORCEABILITY OF THIS NOTE SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

 

	
			 

				
			THE TRU SHRIMP COMPANY

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			 

				
			 

				
			 

			
	
			 

				
			By: 

				
			/s/ Michael B. Ziebell

				
			 

			

	
			 

				
			Printed Name:  

				
			Michael B. Ziebell

				
			 

			

	
			 

				
			Title:

				
			President & CEOex_331011.htm

 

Exhibit 4.7

 

	
			SBA Loan #

				
			6314007005

			
	
			SBA Loan Name

				
			The Tru Shrimp Company

			
	
			Date

				
			April 9, 2020

			
	
			Loan Amount

				
			$483,000.00

			
	
			Interest Rate

				
			Fixed rate at 1.00% per annum

			
	
			Borrower

				
			The Tru Shrimp Company

			
	
			Operating Company

				
			N/A

			
	
			Lender

				
			Bremer Bank, National Association

			

 

	
			1.

				
			PROMISE TO PAY:

			

 

In return for the Loan, Borrower promises to pay to the order of Lender the amount of four hundred eighty-three thousand dollars and zero cents  Dollars, interest on the unpaid principal balance, and all other amounts required by this Note.

 

	
			2.

				
			DEFINITIONS:

			

 

“Collateral” means any property taken as security for payment of this Note or any guarantee of this Note.

 

“Guarantor” means each person or entity that signs a guarantee of payment of this Note.

 

“Loan” means the loan evidenced by this Note.

 

“Loan Documents” means the documents related to this loan signed by Borrower, any Guarantor, or anyone who pledges collateral.

 

“SBA” means the Small Business Administration, an Agency of the United States of America.

 

Page 1 of 6

 

 

	
			3.

				
			PAYMENT TERMS:

			

 

Borrower must make all payments at the place Lender designates. The payment terms for this Note are:

 

	
			 

			The interest rate on this Note will be fixed at one percent (1.00%) per annum.

			 

			By execution hereof, Borrower acknowledges and agrees that all, or a portion of, the principal balance of the loan may be forgiven, which forgiveness is subject to the terms and conditions of the Coronavirus Aid, Relief, and Economic Security Act, as amended (the “CARES Act”), the Interim Final Rule related to the Paycheck Protection Program (issued by the U.S. Small Business Administration (“SBA”) on April 2, 2020), and the Paycheck Protection Program Borrower Application Form 2483, and all documents related thereto, submitted by Borrower to Lender.

			 

			Borrower further acknowledges and agrees that Borrower shall submit an application to Lender for forgiveness of the loan pursuant to the requirements of the the CARES Act and the Interim Final Rule. Borrower further acknowledges and agrees that any portion of the loan not forgiven shall be due and payable on or before a date that is two (2) years from the date of this Note (the “Maturity Date”), and such unforgiven principal and interest balance of the loan shall be paid pursuant to the payment terms set forth below. Borrower shall hold Lender harmless against any and all claims related to, or arising out of, the non-forgiveness of the loan or any portion thereof.

			 

			Commencing seven (7) months from the date of this Note, unless fully forgiven prior thereto, Borrower shall pay to Lender monthly principal and interest payments, each in an amount that would fully amortize the unpaid principal balance of this Note over the then remaining term of this Note (“Monthly Installment”). The Monthly Installment shall be due and payable on the same day of each subsequent calendar month. All remaining amounts shall be fully due and payable on the Maturity Date.

			 

			Lender shall apply each Monthly Installment and other payment first to pay interest accrued to the day Lender receives the payment, then to pay any late fees, and shall apply any remaining amount of each Monthly Installment to the outstanding principal balance.

			 

			Borrower may prepay the principal under this Note at any time and from time to time, in whole or in part, without premium or penalty. No partial prepayment shall postpone the due date of any Monthly Installment or reduce the amount of any such Monthly Installment unless Lender agrees otherwise in writing.

			 

			Late Charge: If a payment on this Note is more than 10 days late, Lender may charge Borrower a late fee of up to 5.00% of the unpaid portion of the regularly scheduled payment.

			 

			Borrower expressly acknowledges, agrees, and understands that this Note was made pursuant to the rules and requirements set forth under the Paycheck Protection Program as described in the CARES Act and the Interim Final Rule related to the Paycheck Protection Program (issued by the U.S. Small Business Administration on April 2, 2020), and that the SBA has the right and ability to interpret the CARES Act and to change and revise certain rules, policies and requirements under the Paycheck Protection Program. Borrower agrees to provide and/or execute all new, revised, amended and updated information, signatures, and documentation that Lender may request and require in order to comply with SBA’s rules and requirements under the Paycheck Protection Program or any other applicable SBA loan program. Additionally, Borrower hereby expressly grants Lender the unilateral authority to adjust the Maturity Date, amortization period and/or amount of the Monthly Installment to the extent necessary for Lender to comply with any new or revised rules, regulations, requirements or policies issued by the SBA and related to the Paycheck Protection Program.

			 

			

 

Page 2 of 6

 

 

	
			4.

				
			DEFAULT:

			

 

Borrower is in default under this Note if Borrower does not make a payment when due under this Note, or if Borrower or Operating Company:

 

	 	
			A.

				
			Fails to do anything required by this Note and other Loan Documents;

			

 

	 	
			B.

				
			Defaults on any other loan with Lender;

			

 

	 	
			C.

				
			Does not preserve, or account to Lender’s satisfaction for, any of the Collateral or its proceeds;

			

 

	 	
			D.

				
			Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender or SBA;

			

 

	 	
			E.

				
			Makes, or anyone acting on their behalf makes, a materially false or misleading representation to Lender or SBA;

			

 

	 	
			F.

				
			Defaults on any loan or agreement with another creditor, if Lender believes the default may materially affect Borrower’s ability to pay this Note;

			

 

	 	
			G.

				
			Fails to pay any taxes when due;

			

 

	 	
			H.

				
			Becomes the subject of a proceeding under any bankruptcy or insolvency law;

			

 

	 	
			I.

				
			Has a receiver or liquidator appointed for any part of their business or property;

			

 

	 	
			J.

				
			Makes an assignment for the benefit of creditors;

			

 

	 	
			K.

				
			Has any adverse change in financial condition or business operation that Lender believes may materially affect Borrower’s ability to pay this Note;

			

 

	 	
			L.

				
			Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender’s prior written consent; or

			

 

	 	
			M.

				
			Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower’s ability to pay this Note.

			

 

	
			5.

				
			LENDER’S RIGHTS IF THERE IS A DEFAULT:

			

 

Without notice or demand and without giving up any of its rights, Lender may:

 

	 	
			A.

				
			Require immediate payment of all amounts owing under this Note;

			

 

	 	
			B.

				
			Collect all amounts owing from any Borrower or Guarantor;

			

 

	 	
			C.

				
			File suit and obtain judgment;

			

 

	 	
			D.

				
			Take possession of any Collateral; or

			

 

	 	
			E.

				
			Sell, lease, or otherwise dispose of, any Collateral at public or private sale, with or without advertisement.

			

 

Page 3 of 6

 

 

	
			6.

				
			LENDER’S GENERAL POWERS:

			

 

Without notice and without Borrower’s consent, Lender may:

 

	 	
			A.

				
			Bid on or buy the Collateral at its sale or the sale of another lienholder, at any price it chooses;

			

 

	 	
			B.

				
			Incur expenses to collect amounts due under this Note, enforce the terms of this Note or any other Loan Document, and preserve or dispose of the Collateral. Among other things, the expenses may include payments for property taxes, prior liens, insurance, appraisals, environmental remediation costs, and reasonable attorney’s fees and costs. If Lender incurs such expenses, it may demand immediate repayment from Borrower or add the expenses to the principal balance;

			

 

	 	
			C.

				
			Release anyone obligated to pay this Note;

			

 

	 	
			D.

				
			Compromise, release, renew, extend or substitute any of the Collateral; and

			

 

	 	
			E.

				
			Take any action necessary to protect the Collateral or collect amounts owing on this Note.

			

 

	
			7.

				
			WHEN FEDERAL LAW APPLIES:

			

 

When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt federal law.

 

	
			8.

				
			SUCCESSORS AND ASSIGNS:

			

 

Under this Note, Borrower and Operating Company include the successors of each, and Lender includes its successors and assigns.

 

	
			9.

				
			GENERAL PROVISIONS:

			

 

	 	
			A.

				
			All individuals and entities signing this Note are jointly and severally liable.

			

 

	 	
			B.

				
			Borrower waives all suretyship defenses.

			

 

	 	
			C.

				
			Borrower must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain Lender’s liens on Collateral.

			

 

	 	
			D.

				
			Lender may exercise any of its rights separately or together, as many times and in any order it chooses. Lender may delay or forgo enforcing any of its rights without giving up any of them.

			

 

	 	
			E.

				
			Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms of this Note.

			

 

	 	
			F.

				
			If any part of this Note is unenforceable, all other parts remain in effect.

			

 

	 	
			G.

				
			To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment, demand, protest, and notice of dishonor. Borrower also waives any defenses based upon any claim that Lender did not obtain any guarantee; did not obtain, perfect, or maintain a lien upon Collateral; impaired Collateral; or did not obtain the fair market value of Collateral at a sale.

			

 

Page 4 of 6

 

 

	
			10.

				
			STATE-SPECIFIC PROVISIONS:

			

 

	
			 

			None

			 

			 

			 

			 

			 

			 

			 

			 

			 

			 

			 

			 

			 

			 

			 

			 

			

 

Page 5 of 6

 

 

	
			11.

				
			BORROWER’S NAME(S) AND SIGNATURE(S):

			

 

By signing below, each individual or entity becomes obligated under this Note as Borrower.

 

	
			 

			Borrower: The Tru Shrimp Company

			 

			 

			By: E-SIGNED by Michael Ziebell on 04-09-2020- 20:16:52 GMT

			 

			 

			Name and Title: Michael Ziebell

			                          CEO

			 

			 

			 

			 

			 

			 

			 

			 

			 

			 

			

 

Page 6 of 6

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