Document:

Exhibit
10.3

 

FIFTH
AMENDMENT AND WAIVER TO LOAN AND SECURITY AGREEMENT

 

This FIFTH AMENDMENT
AND WAIVER TO LOAN AND SECURITY AGREEMENT (this “Fifth Amendment”) is made and entered into as of November
5, 2020, by and between EAST WEST BANK, a Delaware corporation (“Bank”), and NEWAGE, INC., f/k/a
NEW AGE BEVERAGES CORPORATION, a Washington corporation (“Borrower”).

 

WHEREAS,
Borrower and Bank are party to that certain Loan and Security Agreement, dated as of March 29, 2019, by and between Borrower,
as borrower, and Bank, as lender (as amended by that certain First Amendment, Waiver and Consent to Loan and Security Agreement,
dated as of July 11, 2019, that certain Second Amendment and Waiver to Loan and Security Agreement, dated as of October 9, 2019,
that certain Third Amendment and Waiver to Loan and Security Agreement, dated as of March 13, 2020, that certain Fourth Amendment
to Loan and Security Agreement, dated as of July 6, 2020, and as further amended, restated, amended and restated, supplemented
or otherwise modified from time to time, the “Loan Agreement”);

 

WHEREAS,
Borrower and Bank desire to (i) amend certain provisions of the Loan Agreement and (ii) waive any default or Event of Default
that has arisen or would otherwise arise under Section 8.2(a) of the Loan Agreement for Borrower and its Subsidiaries’ failure
to achieve, in accordance with Section 7.12(a) of the Loan Agreement, Adjusted EBITDA of at least -$4,000,000 for the three month
period ending on September 30, 2020; and

 

WHEREAS,
pursuant to Section 9.6 of the Loan Agreement, a waiver under the Loan Agreement may be granted by Bank, and pursuant to Section
12.7 of the Loan Agreement, the Loan Agreement may be amended by an instrument in writing signed by Borrower and Bank.

 

NOW,
THEREFORE, in consideration of the mutual agreements herein contained, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.
Definitions; Loan Document. Capitalized terms used herein without definition shall have the meanings assigned to
such terms in the Loan Agreement. This Fifth Amendment shall constitute a Loan Document for all purposes of the Loan Agreement
and the other Loan Documents.

 

2.
Waiver. Bank hereby waives any non-compliance by Borrower with the covenant set forth in Section 7.12(a) of the
Loan Agreement as a result of its and its Subsidiaries’ failure to achieve Adjusted EBITDA of at least -$4,000,000 for the
three month period ending on September 30, 2020 and any default or Event of Default that may have occurred or would otherwise
arise under Section 8.2(a) of the Loan Agreement as a result thereof.

 

3.
Amendment to Section 7.12(a). Section 7.12(a) is hereby deleted in its entirety and replaced with “[Reserved].”.

 

4.
Amendment to Exhibit B. Exhibit B to the Credit Agreement
is hereby amended and restated in its entirety in the form of Annex I attached hereto.

 

    	 

     

    

 

5.
Conditions to Effectiveness. This Fifth Amendment shall become effective upon receipt by Bank of counterpart signatures
to this Fifth Amendment duly executed and delivered by Bank and Borrower.

 

6.
Expenses. Borrower agrees to pay on demand all expenses of Bank (including, without limitation, the fees and out-of-pocket
expenses of Covington & Burling LLP, counsel to Bank) incurred in connection with the negotiation, preparation, execution
and delivery of this Fifth Amendment.

 

7.
Representations and Warranties. Borrower hereby represents and warrants to Bank as follows:

 

(a)
After giving effect to this Fifth Amendment, the representations and warranties contained in the Loan Agreement or any other Loan
Document shall be true, accurate and complete in all material respects; provided, however, that such materiality
qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality
in the text thereof; and provided further that those representations and warranties expressly referring to a specific date
shall be true, accurate and complete in all material respects as of such date.

 

(b)
After giving effect to this Fifth Amendment, no default or Event of Default shall have occurred and be continuing.

 

8.
No Implied Amendment or Waiver. Except as expressly set forth in this Fifth Amendment, this Fifth Amendment shall
not, by implication or otherwise, limit, impair, constitute a waiver of or otherwise affect any rights or remedies of Bank under
the Loan Agreement or alter, modify, amend, waive or in any way affect any of the terms, obligations or covenants contained in
the Loan Agreement, all of which shall continue in full force and effect. Nothing in this Fifth Amendment shall be construed to
imply any willingness on the part of Bank to agree to or grant any similar or future consent, amendment or waiver of any of the
terms and conditions of the Loan Agreement or the other Loan Documents.

 

9.
Release. Borrower hereby acknowledges and agrees that: (a) to its knowledge neither it nor any of its Affiliates
have any claim or cause of action against Bank (or any of its Affiliates, officers, directors, employees, attorneys, consultants
or agents) under the Loan Agreement as of the date hereof and (b) to its knowledge, as of the date hereof, Bank has heretofore
properly performed and satisfied in a timely manner all of its obligations to Borrower under the Loan Agreement. Notwithstanding
the foregoing, Bank wishes to eliminate any possibility that any past conditions, acts, omissions, events or circumstances would
impair or otherwise adversely affect any of Bank’s rights, interests and/or remedies under the Loan Agreement. Accordingly,
for and in consideration of the agreements contained in this Fifth Amendment and other good and valuable consideration, Borrower
(for itself and its Affiliates and the successors and assigns of each of the foregoing) (each a “Releasor”
and collectively, the “Releasors”) does hereby fully, finally, unconditionally and irrevocably release and
forever discharge Bank and its Affiliates, officers, directors, employees, attorneys, consultants and agents (each a “Released
Party” and collectively, the “Released Parties”) from any and all debts, claims, obligations, damages,
costs, attorneys’ fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, whether known
or unknown, contingent or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under
contract, tort, statute or otherwise, in each case that exist or have occurred on or prior to the date of this Fifth Amendment
which any Releasor has heretofore had or now shall or may have against any Released Party by reason of any act, omission or thing
whatsoever done or omitted to be done, except for a Released Party’s gross negligence or willful misconduct as determined
by a final, non-appealable judgment of a court of competent jurisdiction, prior to the date hereof arising out of, connected with
or related in any way to the Loan Agreement, or any act, event or transaction related or attendant thereto, or Bank’s agreements
contained therein, or the possession, use, operation or control in connection therewith of any of the assets of Borrower, or the
making of any advance thereunder, or the management of such advance, in each case on or prior to the date of this Fifth Amendment.

 

10.
Counterparts. This Fifth Amendment may be executed by the parties hereto in several counterparts, each of which
shall be an original and all of which shall constitute together but one and the same agreement. Delivery of an executed counterpart
of a signature page to this Fifth Amendment by e-mail (e.g., “pdf” or “tiff”) or telecopy shall be effective
as delivery of a manually executed counterpart of this Fifth Amendment.

 

11.
Governing Law. THIS FIFTH AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF
NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.

 

[Signature
Page Follows.]

 

    	-2-

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Fifth Amendment to be executed by their respective officers thereunto
duly authorized as of the day and year first above written.

 

	 	NEWAGE,
    INC.,
	 	as
    Borrower
	 	 	 
	 	By:
    	/s/
    Gregory A. Gould
	 	Name:	Gregory
A. Gould
	 	Title:	Chief
    Financial Officer
	 	 	 
	 	EAST
    WEST BANK,
	 	as
    Bank
	 	 	 
	 	By:
    	/s/
    Kelvin Chan
	 	Name:	Kelvin
    Chan
	 	Title:
    	Managing
    Director

 

Signature
Page to Fifth Amendment to Loan and Security Agreement 

 

    	 

     

    

 

Annex
I

 

EXHIBIT
B

 

COMPLIANCE
CERTIFICATE

 

	TO:	EAST
    WEST BANK	Date:
    	 
	FROM:
    	NEWAGE,
    INC. (f/k/a NEW AGE BEVERAGES CORPORATION)	 	 

 

The
undersigned authorized officer of NewAge, INC. (f/k/a New Age Beverages Corporation) (“Borrower”) certifies
that under the terms and conditions of the Loan and Security Agreement between Borrower and East West Bank (“Bank”)
(the “Agreement”), (i) Borrower is in complete compliance for the period ending [_______________] with all
required covenants except as noted below, (ii) there are no Events of Default, (iii) all representations and warranties in the
Agreement are true and correct in all material respects on this date except as noted below; provided, however, that
such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified
by materiality in the text thereof; and provided, further that those representations and warranties expressly referring
to a specific date shall be true, accurate and complete in all material respects as of such date, (iv) Borrower, and each of its
Subsidiaries, has timely filed all required tax returns and reports, and Borrower has timely paid all foreign, federal, state
and local taxes, assessments, deposits and contributions owed by Borrower except as otherwise permitted pursuant to the terms
of Section 5.9 of the Agreement, and (v) no Liens have been levied or claims made against Borrower or any of its Subsidiaries,
if any, relating to unpaid employee payroll or benefits of which Borrower has not previously provided written notification to
Bank. Attached are the required documents supporting the certification. The undersigned certifies that these are prepared in accordance
with GAAP consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The undersigned
acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance with
any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. Capitalized
terms used but not otherwise defined herein shall have the meanings given them in the Agreement.

 

Please
indicate compliance status by circling Yes/No under “Complies” column. 

 

	Reporting
    Covenants	 	Required	 	Complies
	 	 	 	 	 
	Monthly
    financial statements 	 	Monthly
    within 45 days	 	Yes    No
	Quarterly
    financial statements 	 	Quarterly
    within 50 days	 	Yes    No
	Annual
    financial statements (CPA Audited)	 	FYE
    within 105 days	 	Yes    No
	10-Q,
    10-K and 8-K	 	Within
    5 days after filing with SEC	 	Yes    No
	Board
    approved projections	 	FYE
    within 60 days	 	Yes    No

 

The
following Intellectual Property was registered after the [Effective Date/date of the last Compliance Certificate] (if no registrations,
state “None”)

 

—————————————————————————————————————

 

	Financial
    Covenant	 	Required	 	Actual	 	Complies
	 	 	 	 	 	 	 
	Maximum
    Total Leverage Ratio:	 	 	 	 	 	 
	Quarters
    ending 6/30/21 through 9/30/21	 	2.50
    to 1.00	 	 	 	[Yes/No]
	Quarters
    ending 12/31/21 through 9/30/22	 	2.00
    to 1.00	 	 	 	[Yes/No]
	Quarter
    ending 12/31/22 and thereafter	 	1.50
    to 1.00	 	 	 	[Yes/No]
		 	 	 	 	 	 
	Minimum
    Fixed Charge Coverage Ratio (6/30/21 and thereafter):	 	1.25
    to 1.00	 	 	 	[Yes/No]

 

The
following are the exceptions with respect to the certification above: (If no exceptions exist, state “No exceptions to note.”)

 

————————————————————————————————————————————————

 

	NEWAGE,
    INC.	 
	 	 
	By:	         	 
	Name:	 	 
	Title:	 	 

 

    	 

     

    

 

Schedule
1 to Compliance Certificate

 

Financial
Calculations of Borrower

 

In
the event of a conflict between this Schedule and the Loan Agreement, the terms of the Loan Agreement shall govern.

 

Dated:
____________, 20__

 

1.
Total Leverage Ratio

 

	The
                                         Total Leverage Ratio for the fiscal quarter ended [  ]1:

         

        Calculation
        of the Total Leverage Ratio:

         

        [  ]

         

         
	 

        _____
        _____

	The
    maximum Total Leverage Ratio permitted by Section 7.12(c) of the Agreement is the ratio set forth in the table below opposite
    such date:	 

 

	Date	 	Maximum
    Total Leverage Ratio
	June
    30, 2021	 	2.50
    to 1.00
	September
    30, 2021	 	2.50
    to 1.00
	December
    31, 2021	 	2.00
    to 1.00
	March
    31, 2022	 	2.00
    to 1.00
	June
    30, 2022	 	2.00
    to 1.00
	September
    30, 2022	 	2.00
    to 1.00
	December
    31, 2022 and thereafter	 	1.50
    to 1.00
	 

        Compliance:
	 	 

        [Yes]
        [No]     

 

2.
Fixed Charge Coverage Ratio

 

	The
                                         minimum Fixed Charge Coverage Ratio for the fiscal quarter ended [  ]2:

         

        Calculation
        of the Fixed Charge Coverage Ratio:

         

        [  ]

         
	 

        _____
        _____

	The
    minimum Fixed Charge Coverage Ratio permitted by Section 7.12(d) of the Agreement is the ratio set forth in the table below
    opposite such date:	 

 

	Date	 	Minimum
    Fixed Charge Coverage Ratio
	June
    30, 2021 and thereafter	 	1.25
    to 1.00
	 

        Compliance:
	 	 

        [Yes]
        [No]    

 

 

1
To be the fiscal quarter most recently ended.

2
To be the fiscal quarter most recently ended.Document

Exhibit 10.1

Amendment to
American Public Education, Inc.
Executive Employment Agreement

THIS AMENDMENT TO THE EXECUTIVE EMPLOYMENT AGREEMENT (the “Amendment”) is made and entered into effective as of September 23, 2020 (the “Amendment Effective Date”), by and between American Public Education, Inc., a Delaware corporation (the “Company”) and Angela Selden (the “Executive”). 

WHEREAS, the Company and Executive entered into that certain Executive Employment Agreement (the “Agreement”) dated as of August 21, 2019, to be effective as of September 23, 2019, and

WHEREAS, the Company and the Executive desire to amend Section 7 of the Agreement in the manner reflected herein,
 
NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, the parties hereto agree as follows, effective as of the Amendment Effective Date:

1.    Relocation. Section 7 of the Agreement is hereby deleted and replaced in its entirety with the following (with all capitalized terms having the meaning originally ascribed thereto in the Agreement):

“7. Relocation Expenses/Initial Hire. In calendar year 2021, the Company shall reimburse the Executive up to $75,000 in incurred expenses for Executive’s relocation to the vicinity of the Company’s headquarters, which expenses are limited to eligible expenses set forth in the Company’s relocation policy (which includes reasonable and customary meals during house hunting trips), subject to such exceptions as may be approved by the Compensation Committee, and are otherwise subject to the terms and conditions of such policy. In addition, all such reimbursed expenses must be repaid by the Executive to the Company on demand if within two (2) years of the Effective Date, the Executive’s employment terminates unless such termination was by the Company without Cause, by Executive for Good Reason or on account of death or Disability. In addition, for a period of not longer than two (2) years after the Effective Date, (i) to facilitate Executive’s presence and duties at Company locations, the Company shall reimburse the Executive for temporary lodging expenses in connection with the Executive’s work at Company locations, which amount may not exceed $8,000 per month, and (ii) the Company will reimburse the Executive the costs for round trip travel in economy class one time per week from the work location that the Executive was working in that week to the Executive’s current residence in Florida. The Executive acknowledges that the foregoing reimbursements will constitute taxable income.”

2.    Counterparts. This Amendment may be executed in one or more facsimile, electronic or original counterparts, each of which shall be deemed an original and both of which together shall constitute the same instrument.

3.    Ratification. All terms and provisions of the Agreement not amended hereby, either expressly or by necessary implication, shall remain in full force and effect. From and after the date of this Amendment, all references to the term “Agreement” in this Amendment or the original Agreement shall include the terms contained in this Amendment.

IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Executive Employment Agreement effective as of the Amendment Effective Date.

[Signature page follows]

IN WITNESS WHEREOF, the undersigned have duly executed this Agreement, or have caused this Agreement to be duly executed on their behalf, as of the day and year first hereinabove written.
              
          
									
		AMERICAN PUBLIC UNIVERSITY SYSTEM, INC.
			
			
		By:	/s/ Richard W. Sunderland, Jr.
		Name:	Richard W. Sunderland, Jr.
		Title:	Chief Financial Officer

									
		AMERICAN PUBLIC EDUCATION, INC.
			
			
		By:	/s/ Richard W. Sunderland, Jr.
		Name:	Richard W. Sunderland, Jr.
		Title:	Chief Financial Officer

									
		THE EXECUTIVE
			
			
		By:	/s/ Angela Selden
		Name:	Angela Selden
		Title:	Chief Executive Officer

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