Document:

exhibit101sixthamendment

                                                                                                              SIXTH AMENDMENT                     TO CREDIT AND GUARANTY AGREEMENT               SIXTH AMENDMENT (this “Agreement”) dated as of April 1, 2020 among BlueLinx  Holdings Inc. (the “Borrower”), the “Guarantors” referred to on the signature pages hereto, the Lenders  executing this Agreement on the signature pages hereto and HPS INVESTMENT PARTNERS, LLC, in its  capacity as Administrative Agent (the “Administrative Agent”) under the Credit Agreement referred to  below.               WHEREAS, the Borrower, the Guarantors party thereto, the Lenders party thereto and the  Administrative Agent are parties to that certain Credit and Guaranty Agreement, dated as of April 13, 2018  (as amended, restated, supplemented, or otherwise modified from time to time, the “Credit Agreement”).               WHEREAS, the Credit Parties, the Lenders party hereto constituting the Requisite Lenders  and the Administrative Agent desire to amend the Credit Agreement on the terms set forth herein.               NOW THEREFORE, in consideration of the premises and covenants contained herein and  for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,  the parties hereto hereby agree as follows:               Section 1.  Definitions.  Except as otherwise defined in this Agreement, terms defined  in the Credit Agreement, after giving effect to this Agreement, are used herein as defined therein.  This  Agreement shall constitute a Credit Document for all purposes of the Credit Agreement and the other Credit  Documents.               Section 2.  Amendments.  Subject  to  the  satisfaction  of  the  conditions  precedent  specified in Section 4 below, effective as of the Sixth Amendment Effective Date, the Credit Agreement is  hereby amended as follows:                     (a)   The following new definition shall be added to Section 1.1 of the Credit              Agreement in the appropriate alphabetical order:                     “Sixth Amendment Effective Date” means April 1, 2020.                     (b)   Section  1.4  of  the  Credit  Agreement  shall  be  amended  by  adding  the              following clause (f) immediately following clause (e) thereof:                     “(f)  Notwithstanding anything to the contrary contained herein, for purposes              of determining compliance with the financial covenant set forth in Section 6.7 in respect              of the Fiscal Quarter ending March 28, 2020, in the event that the Borrower has made              mandatory prepayments of the Loans under Section 2.10(a) during the period commencing              on March 29, 2020, and ending on, and including, the Sixth Amendment Effective Date,              the principal amount of the Loans included in Consolidated Total Debt for purposes of              calculating the Total Net Leverage Ratio for the Fiscal Quarter ending March 28, 2020,              shall be  calculated  giving  effect to such mandatory prepayments  as if they were  made              during the applicable Measurement Period.”                     (c)   Section 2.10(a) of the Credit Agreement shall be restated in its entirety as        follows:    34408.03700 

 

                            “(a)  Asset Sales.  Not later than the fifth Business Day following the date of        receipt by the Borrower or any of its Subsidiaries of any Net Asset Sale Proceeds (other        than from (x) the sale of any Specified Properties after the Third Amendment Effective        Date and (y) Permitted Leaseback Transactions), the Borrower shall prepay the Loans in        an aggregate amount equal to such Net Asset Sale Proceeds, together with accrued interest        thereon and any premium payable pursuant to Section 2.11; provided that (i) to the extent        any such Net Asset Sale Proceeds constitute proceeds of ABL Priority Collateral (including        the portion of Net Asset Sale Proceeds constituting proceeds of ABL Priority Collateral        from an Asset Sale of the Equity Interests of any Credit Party that owns ABL Priority        Collateral), then the mandatory prepayment pursuant to this Section 2.10(a) with respect        to Net Asset Sale Proceeds constituting proceeds of ABL Priority Collateral shall be in an        amount equal to 100% of such Net Asset Sale Proceeds minus the amount of such Net        Asset Sale Proceeds that are then required to be used to prepay Indebtedness under the        ABL Credit Agreement, and (ii) (A) so long as no Default or Event of Default shall have        occurred and be continuing, and (B) to the extent that (x) such Net Asset Sale Proceeds        consist  of  proceeds  of  the  sale  of  Specified  Properties  prior  to  the  Third  Amendment        Effective Date, or (y) the Net Asset Sale Proceeds (other than from the sale of any Specified        Properties)  reinvested  in  accordance  with  this  Section  2.10(a)  from  the  Closing  Date        through the applicable date of determination, together with the aggregate amount of Net        Insurance/Condemnation Proceeds reinvested in accordance with Section 2.10(b) and Net        Extraordinary  Receipts  reinvested  in  accordance  with Section  2.10(f),  do  not  exceed        $15,000,000 in the aggregate, then, in each case, Borrower shall have the option, directly        or through one or more of its Subsidiaries, to invest (or commit to invest) all or a portion        of such Net Asset Sale Proceeds in long term productive assets of the general type used in        the business of the Borrower and its Subsidiaries within twelve (12) months of receipt        thereof (or, if committed to be reinvested within such twelve (12) month period, within six        (6) months of such twelve (12) month period); provided that with respect to any Net Asset        Sale  Proceeds  from  the  sale  of  any  Specified  Property  prior  to  the  Third  Amendment        Effective Date, such permitted reinvestment period shall end on April 1, 2020.  For the        avoidance of doubt, any Net Asset Sale Proceeds not so invested during such twelve (12)        month period (or, (x) in the case of commitments, within six (6) months of such twelve        (12) month period and (y) in the case of Net Asset Sale Proceeds from the sale of any        applicable Specified Property, by April 1, 2020) shall be required to be used to make a        mandatory prepayment of the Loans on or before the Business Day after such period ends.        Notwithstanding  the  foregoing  provisions  of  this Section  2.10(a),  the  Net  Asset  Sale        Proceeds of (I) any Specified Property sold after the Third Amendment Effective Date and        (II) any Permitted Leaseback Transaction shall be excluded from the requirements of this        Section 2.10(a) and shall instead be required to repay the Loans and applied in accordance        with Section 2.10(c) of this Agreement.”               (d)   Section 6.7  of the  Credit Agreement  shall be  restated  in  its  entirety  as  follows:               “6.7  Financial Covenant.  The Total Net Leverage Ratio as of the last day of        any Fiscal Quarter (commencing with the Fiscal Quarter ending September 29, 2018) shall        not exceed the corresponding ratio set forth below:                       Fiscal Quarter  Total Net Leverage                        Ending             Ratio                    September 29, 2018   8.25 to 1.00                                   2 

 

                             Fiscal Quarter  Total Net Leverage                              Ending             Ratio                          December 29, 2018    6.75 to 1.00                           March 30, 2019      8.00 to 1.00                            June 29, 2019      8.25 to 1.00                          September 28, 2019   7.50 to 1.00                          December 28, 2019    6.25 to 1.00                           March 28, 2020      6.25 to 1.00                            June 27, 2020      8.75 to 1.00                          September 26, 2020   8.75 to 1.00                           January 2, 2021     5.25 to 1.00                            April 3, 2021      5.00 to 1.00                             July 3, 2021      4.75 to 1.00                           October 2, 2021     4.50 to 1.00                           January 1, 2022     4.25 to 1.00                            April 2, 2022      4.00 to 1.00                             July 2, 2022      3.75 to 1.00                             Thereafter        3.50 to 1.00               ; provided that this Section 6.7 and the requirements of this Section 6.7 shall not apply at              any time that the outstanding principal balance of the Loans is less than $45,000,000.”               Section 3.  Representations  and  Warranties.   Each  Credit  Party  represents  and  warrants to each Agent and the Lenders that, after giving effect to this Agreement, (a) the representations  and warranties set forth in Section 4 of the Credit Agreement, and in each of the other Credit Documents,  are true and complete in all material respects on the date hereof as if made on and as of the date hereof (or,  if any such representation or warranty is expressly stated to have been made as of a specific date, such  representation or warranty shall be true and correct as of such specific date), and as if each reference in said  Section  4  to  “this  Agreement”  included  reference  to  the  Credit  Agreement   after  giving  effect  to  this  Agreement and (b) no Default or Event of Default has occurred and is continuing as of the date hereof.               Section 4.  Conditions Precedent.  The amendments set forth in Section 2 hereof shall  each become effective, as of the date hereof (the “Sixth Amendment Effective Date”), upon satisfaction of  the following conditions:                     (a)   Execution.  The Administrative Agent shall have received counterparts of       this  Agreement  executed  by  the  Borrower,  the  Guarantors  party  to  the  Credit  Agreement  and       Lenders party to the Credit Agreement constituting the Requisite Lenders.                     (b)   Expenses.  The Borrower shall have paid all reasonable and documented       out-of-pocket fees, charges and disbursements due and payable under the Credit Documents on or       prior to the date hereof, including all reasonable and documented out-of-pocket fees, charges and       disbursements of Administrative Agent and counsel to Administrative Agent.                                         3 

 

               Section 5.  No Novation or Mutual Departure.  The Borrower expressly acknowledges  and agrees that there has not been, and this Agreement does not constitute or establish, a novation with  respect to the Credit Agreement or any other Credit Document, or a mutual departure from the strict terms,  provisions, and conditions thereof, other than with respect to the amendments contained in Section 2 hereof.               Section 6.  Confirmation.  Each Credit Party (a) confirms its obligations under the  Collateral Documents, (b) confirms that its Obligations under the Credit Agreement as modified hereby are  entitled to the benefits of the pledges set forth in the Collateral Documents, (c) confirms that its Obligations  under  the  Credit  Agreement  as  modified  hereby  constitute  “Secured  Obligations”  (as  defined  in the  Collateral Documents) and (d) agrees that the Credit Agreement as modified hereby is the Credit Agreement  under and for all purposes of the Collateral Documents.  Each party, by its execution of this Agreement,  hereby  confirms  that  the  Secured  Obligations  shall  remain  in  full  force  and  effect,  and  such  Secured  Obligations shall continue to be entitled to the benefits of the grant set forth in the Collateral Documents.  Each Guarantor (a) confirms its Guaranteed Obligations under the Credit Agreement, (b) confirms that the  Guaranteed Obligations under the Credit Agreement as modified hereby are entitled to the benefits of the  guarantee set forth in Section 7 of the Credit Agreement and (c) confirms that the Obligations under the  Credit  Agreement  as  modified  hereby  constitute  “Guaranteed  Obligations”.   Each  Credit  Party,  by  its  execution of this Agreement, hereby confirms that the Guaranteed Obligations shall remain in full force  and effect.               Section 7.  Miscellaneous.                     (a)   This Agreement shall be limited as written and nothing herein shall be       deemed to constitute an amendment or waiver of any other term, provision or condition of any of       the Credit Documents in any other instance than as expressly set forth herein or prejudice any right       or remedy that any Lender or any Agent may now have or may in the future have under any of the       Credit Documents.  Except as herein provided, the Credit Agreement shall remain unchanged and       in full force and effect.  This Agreement, the Credit Agreement and the other Credit Documents       constitute the  entire  agreement  among  the  parties  with  respect to  the  subject matter  hereof  and       thereof and supersede all other prior agreements and understandings, both written and verbal, among       the parties or any of them with respect to the subject matter hereof.  This Agreement may be executed       in  any  number  of  counterparts,  all  of  which  taken  together  shall  constitute  one  and  the  same       amendatory instrument and any of the parties hereto may execute this Agreement by signing any       such counterpart.  Delivery of a counterpart by electronic transmission shall be effective as delivery       of a manually executed counterpart hereof.                     (b)   THIS  AGREEMENT  AND  THE  RIGHTS  AND  OBLIGATIONS  OF       THE  PARTIES  HEREUNDER  (INCLUDING,  WITHOUT  LIMITATION,  ANY  CLAIMS       SOUNDING  IN  CONTRACT  LAW  OR  TORT  LAW  ARISING  OUT  OF  THE  SUBJECT       MATTER HEREOF AND ANY DETERMINATIONS WITH RESPECT TO POST-JUDGMENT       INTEREST) SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED       IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD       TO  CONFLICT  OF  LAWS  PRINCIPLES  THEREOF  THAT  WOULD  RESULT  IN  THE       APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.                     (c)   Each of the undersigned Lenders, by its execution hereof, authorizes and       directs the Administrative Agent to execute and deliver this Agreement upon the satisfaction of the       conditions  precedent  described  above  (which  shall  be  conclusively  evidenced by  such  Lender’s       execution hereof).                                          4 

 

                             (d)   Each  of  the  undersigned  Lenders  confirms  the  authority  of  the  Administrative Agent and Collateral Agent to, and the Administrative Agent and Collateral Agent  each agrees to, in each case without further written consent or authorization from any Secured Party,  execute  any  documents  or  instruments  necessary  to  release  any  Lien  encumbering  any  item  of  Collateral  that  is  the subject  of  a  Permitted  Leaseback  Transaction  permitted  under  the  Credit  Agreement (as amended hereby).                           [Signature pages follow]                                     5 

 

               IN  WITNESS  WHEREOF,  the  parties  hereto  have  caused  this  Agreement  to  be  duly  executed and delivered as of the day and year first above written.   BORROWER:                        BLUELINX HOLDINGS INC.                                    By:   /s/ Mitchell B. Lewis                                                  Name: Mitchell B. Lewis                                         Title: President and Chief Executive Officer                            SIXTH AMENDMENT TO CREDIT AGREEMENT                                        S-1 

 

                GUARANTORS:                    CEDAR CREEK HOLDINGS, INC.                                   By:   /s/ Mitchell B. Lewis                                                Name: Mitchell B. Lewis                                       Title: President and Chief Executive Officer                                  BLUELINX CORPORATION                                   By:   /s/ Mitchell B. Lewis                                                Name: Mitchell B. Lewis                                       Title: President and Chief Executive Officer                                  BLUELINX FLORIDA HOLDINGS NO.1 INC.                                 BLUELINX FLORIDA HOLDINGS N O. 2 INC.                                 CEDAR CREEK LLC                                 CEDAR CREEK CORP.                                 ASTRO BUILDINGS INC.                                 LAKE STATES LUMBER, INC.                                 VENTURE DEVELOPMENT & CONSTRUCTION,                                 LLC                                   By:   /s/ Mitchell B. Lewis                                                Name: Mitchell B. Lewis                                       Title: President and Chief Executive Officer                                  BLUELINX FLORIDA LP                                  By:   BlueLinx Florida Holdings No. 2 Inc.,                                       its General Partner                                   By:   /s/ Mitchell B. Lewis                                                Name: Mitchell B. Lewis                                       Title: President and Chief Executive Officer                          SIXTH AMENDMENT TO CREDIT AGREEMENT                                      S-2 

 

                         ABP AL (MIDFIELD) LLC           ABP CO II (DENVER) LLC           ABP FL (LAKE CITY) LLC           ABP FL (PENSACOLA) LLC           ABP FL (YULEE) LLC           ABP IA (DES MOINES) LLC           ABP IL (UNIVERSITY PARK) LLC           ABP IN (ELKHART) LLC           ABP KY (INDEPENDENCE) LLC           ABP LA (NEW ORLEANS) LLC           ABP ME (PORTLAND) LLC           ABP MI (GRAND RAPIDS) LLC           ABP MN (MAPLE GROVE) LLC           ABP MO (KANSAS CITY) LLC           ABP MO (SPRINGFIELD) LLC           ABP MO (BRIDGETON) LLC           ABP MO (KANSAS CITY) LLC           ABP NC (CHARLOTTE) LLC           ABP NJ (DENVILLE) LLC           ABP NY (YAPHANK) LLC           ABP OH (TALMADGE) LLC           ABP OK (TULSA) LLC           ABP PA (STANTON) LLC           ABP SC (CHARLESTON) LLC           ABP TN (ERWIN) LLC           ABP TN (MEMPHIS) LLC           ABP TN (MADISON) LLC           ABP TX (EL PASO) LLC           ABP TX (HOUSTON) LLC           ABP TX (LUBBOCK) LLC           ABP TX (SAN ANTONIO) LLC           ABP VA (RICHMOND) LLC           ABP VT (SHELBURNE) LLC            By:   BlueLinx Holdings Inc., as Sole Manager             By:   /s/ Mitchell B. Lewis                          Name: Mitchell B. Lewis                 Title: President and Chief Executive Officer    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-3 

 

                ADMINISTRATIVE AGENT:          HPS INVESTMENT PARTNERS, LLC, as                                 Administrative Agent                                   By:   /s/ Vikas Keswani                                                    Name: Vikas Keswani                                       Title: Managing Director                          SIXTH AMENDMENT TO CREDIT AGREEMENT                                      S-4 

 

                REQUISITE LENDERS:             SPECIALTY LOAN FUND 2016, L.P., as Lender                                  By:   HPS Investment Partners, LLC, its                                        Investment Manager                                   By:   /s/ Vikas Keswani                                                    Name: Vikas Keswani                                       Title: Managing Director                          SIXTH AMENDMENT TO CREDIT AGREEMENT                                      S-5 

 

                         SPECIALTY LOAN ONTARIO FUND 2016, L.P., as           Lender            By:   HPS Investment Partners, LLC, its                  Investment Manager             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-6 

 

                         SPECIALTY LOAN FUND 2016-L, L.P., as Lender            By:   HPS Investment Partners, LLC, its                  Investment Manager             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-7 

 

                         SLF 2016 INSTITUTIONAL HOLDINGS, L.P., as           Lender            By:   HPS Investment Partners, LLC, its Service                  Provider             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-8 

 

                         MORENO STREET DIRECT LENDING FUND,           L.P., as Lender            By:   PS Investment Partners, LLC, its                  Investment Manager             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-9 

 

                         SPECIALTY LOAN VG FUND, L.P., as Lender            By:   HPS Investment Partners, LLC, its                  Investment Manager             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-10 

 

                         NDT SENIOR LOAN FUND, L.P., as Lender            By:   HPS Investment Partners, LLC, its                 Investment Manager             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-11 

 

                         AIGUILLES ROUGES SECTOR B INVESTMENT           FUND, L.P., as Lender            By:   HPS Investment Partners, LLC, its                  Investment Manager             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-12 

 

                         FALCON CREDIT FUND, L.P., as Lender            By:   HPS Investment Partners, LLC, its                  Investment Manager              By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-13 

 

                         RELIANCE STANDARD LIFE INSURANCE           COMPANY, as Lender            By:   HPS Investment Partners, LLC, its                  Investment Manager             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-14 

 

                         TMD-DL HOLDING, LLC, as Lender            By:   HPS Investment Partners, LLC, its                  Investment Manager             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-15 

 

                         TOKIO MILLENNIUM RE AG, L.P., as Lender            By:   HPS Investment Partners, LLC, its                  Investment Manager             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-16 

 

                         SPECIALTY LOAN FUND – CX – 2, L.P., as Lender            By:   HPS Investment Partners, LLC, its                  Investment Manager             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-17 

 

                         CACTUS DIRECT LENDING FUND, L.P., as Lender            By:   HPS Investment Partners, LLC, its                  Investment Manager             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director       SIXTH AMENDMENT TO CREDIT AGREEMENT                S-18 

 

                         PRIVATE LOAN OPPORTUNITIES FUND, L.P., as           Lender            By:   HPS Investment Partners, LLC, its                  Investment Manager             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director                                   SIXTH AMENDMENT TO CREDIT AGREEMENT                S-19 

 

                         RED CEDAR FUND 2016, L.P., as Lender            By:   HPS Investment Partners, LLC, its                  Investment Manager             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-20 

 

                         PACIFIC INDEMNITY COMPANY, as Lender            By:   HPS Investment Partners, LLC, its                  Investment Manager             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-21 

 

                         AXA EQUITABLE LIFE INSURANCE COMPANY,           as Lender            By:   HPS Investment Partners, LLC, its                  Investment Manager             By:   /s/ Vikas Keswani                              Name: Vikas Keswani                 Title: Managing Director                                    SIXTH AMENDMENT TO CREDIT AGREEMENT                S-22Exhibit 10.1

 

NEITHER THE ISSUANCE NOR SALE OF THE SECURITIES
REPRESENTED BY THIS NOTE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.
THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM,
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT. 

 

	Principal Amount: $100,001.00	Issue Date: April 6th, 2020

 

 

 

	
         

        PROMISSORY NOTE

         

 

 

FOR VALUE RECEIVED,
VPR Brands, LP, a Delaware limited partnership (the “Company”), hereby promises to pay to the order of Kevin Frija
or registered assigns (the “Holder”) on April 6th, 2021 (the “Maturity Date”), the principal amount set
forth above (the “Principal Amount”), and to pay interest on the outstanding Principal Amount at the rate of Twenty
Four percent (24%) per annum (the “Note”). Interest shall commence accruing on the date hereof (the “Issue Date”),
computed on the basis of a 365-day year and the actual number of days elapsed, provided that any payment otherwise due on a Saturday,
Sunday or legal Bank holiday may be paid on the following business day. All payments due hereunder, shall be made in lawful money
of the United States of America.

 

1.      
Transfers of Note to Comply with the 1933 Act. The
Holder agrees that this Note may not be sold, transferred, pledged, hypothecated or otherwise disposed of except as follows:  (a)
to a person whom the Note may legally be transferred without registration and without delivery of a current prospectus under the
1933 Act with respect thereto and then only against receipt of an agreement of such person to comply with the provisions of this
Section 1 with respect to any resale or other disposition of the Note; or (b) to any person upon delivery of a prospectus then
meeting the requirements of the 1933 Act relating to such securities and the offering thereof for such sale or disposition, and
thereafter to all successive assignees.

 

2.         
Right of Prepayment. The Company may repay any amount
of the Note at any time. On each business day, the Holder may deduct one (1) ACH payment from the bank account of the Borrower
(as specified on Exhibit “A” of this Note) in the amount of $500.00 per business day until such time as the Borrower
has paid an amount equal to the principal and accrued interest as set forth in the Note. Each such payment shall be applied first
to accrued and unpaid interest and the balance shall be applied towards the reduction of the principal amount due under this Note.

 

3.         
Representations and Warranties.  The Company
represents and warrants to the Holder that:

 

		(a)	such party is duly organized, validly existing and in good standing
(if applicable) under the laws of the jurisdiction of its organization;

 

		(b)	such party has authority to own its property and assets and to carry
on its business as now conducted, except, in each case, where the failure to do so, or so possess, individually or in the aggregate
would not reasonably be expected to result in a material adverse effect;

 

		(c)	such party has all requisite organizational power and authority to
execute and deliver and perform all its obligations under this Note;

 

		(d)	such party is qualified to do business in, and is in good standing
(where such concept exists) in, every jurisdiction in which the nature of its business or the ownership or leasing of its properties
makes such qualification necessary, except where the failure to be so qualified or in good standing individually or in the aggregate
would not reasonably be expected to result in a material adverse effect;

    	 

    	 

    

		(e)	the transactions contemplated hereby is within such party’s
organizational powers and have been duly authorized by all necessary corporate or limited liability company action;

 

 

		(f)	this Note has been duly executed and delivered by such party and
constitutes a legal, valid and binding obligation of such party, enforceable in accordance with its terms; and

 

		(g)	the transactions to be entered into and contemplated by this Note
(a) do not require any consent or approval of, registration or filing with, or any other action by, any governmental authority
except for the Company’s disclosure obligations under federal securities laws, (b) will not (i) violate any applicable law
or (ii) the organizational documents, bylaws, charter, operating agreement, certificate of formation or certificate of incorporation
of such party, (c) will not violate or result in a default under any indenture or any other agreement, instrument or other
evidence of indebtedness, and (d) will not result in the creation or imposition of any lien on any asset of such party.

 

4.      
Remedies Upon Default.  In the event that
the Company defaults on its payment obligations under this Note, the Holder may proceed to protect and enforce its rights and remedies
under this Note by suit in equity, action at law or other appropriate proceeding, whether for the specific performance of any covenant
or agreement contained in this Note and proceed to enforce the payment thereof or any other legal or equitable right of the Holder.

 

5.      
Cancellation of Note. Upon the repayment by the Company
of all of its obligations hereunder to the Holder, including, without limitation, the principal amount of this Note, plus accrued
but unpaid interest, the indebtedness evidenced hereby shall be deemed canceled and paid in full.  Payments received
by the Holder hereunder shall be applied first against interest accrued on this Note, and next in reduction of the outstanding
principal balance of this Note.

 

6.      
Severability.  If any provision of this
Note is, for any reason, invalid or unenforceable, the remaining provisions of this Note will nevertheless be valid and enforceable
and will remain in full force and effect.  Any provision of this Note that is held invalid or unenforceable by a court
of competent jurisdiction will be deemed modified to the extent necessary to make it valid and enforceable and as so modified will
remain in full force and effect.

 

7.      
Amendment and Waiver.  This Note, or any
provision of this Note, may only be amended or waived if set forth in a writing executed by the Company and Holder.  The
waiver by Holder of a breach of any provision of this Note shall not operate or be construed as a waiver of any other breach.

 

8.      
Successors.  Except as otherwise provided
herein, this Note shall bind and inure to the benefit of and be enforceable by the Holder and its permitted successors and assigns.

 

9.      
Assignment.  This Note shall not be directly
or indirectly assignable or delegable by the Company or the Holder, except as provided in a writing executed by the Company and
Holder.

 

10.  
Further Assurances.  The Holder will execute
all documents and take such other actions as the Company may reasonably request in order to consummate the transactions provided
for herein and to accomplish the purposes of this Note.

 

11.  
Notices, Consents, etc.  Any notices, consents,
waivers or other communications required or permitted to be given under the terms hereof must be in writing and will be deemed
to have been delivered:  (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one (1)
business day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party
to receive the same.  The addresses and facsimile numbers for such communications shall be:

 

	
         

         

        If to Company:
	
         

         

        VPR BRANDS, LP

        3001 Griffin Road

        Fort Lauderdale, FL 33312

    	 

    	 

    

 

 

	 	
        Attention: Kevin Frija

        Telephone: 954.715.7001

        Facsimile: Kevin.Frija@vprbrands.com

	 	 
	With a Copy to (which shall not constitute notice):	
         

        Anthony LG, PLLC

        Attention: Laura E. Anthony, Esq.

         

	 	 
	If to the Holder:	
        Kevin Frija

        Attention:

        Telephone:

        Facsimile: ______________________

	 	 

or at such other address and/or facsimile number
and/or to the attention of such other person as the recipient party has specified by written notice given to each other party three
(3) trading days prior to the effectiveness of such change.  Written confirmation of receipt (A) given by the recipient
of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender's facsimile
machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided
by a nationally recognized overnight delivery service, shall be rebuttable evidence of personal service, receipt by facsimile or
receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

 

12.        
Governing Law.  Except in the case of the
Jurisdiction provisions of Section 13 below, this Note shall be delivered and accepted in and shall be deemed to be contracts made
under and governed by the internal laws of the State of Delaware, and for all purposes all questions concerning the construction,
validity and interpretation of this Note and any and all disputes or controversies arising out of the subject matter hereof (whether
by contract, tort or otherwise) shall be governed by and construed in accordance with the domestic laws of the State of Delaware,
without giving effect to any choice of law or conflict of law provision (whether of the State of Delaware or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the State of Florida.

 

13.  
Jurisdiction.  EACH PARTY HERETO AGREES
THAT JURISDICTION AND VENUE IN ANY ACTION BROUGHT BY THE HOLDER PURSUANT TO THIS NOTE SHALL PROPERLY (BUT NOT EXCLUSIVELY) LIE
IN ANY FEDERAL OR STATE COURT LOCATED IN BROWARD COUNTY, FLORIDA.  BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH
PARTY HERETO IRREVOCABLY SUBMITS TO THE JURISDICTION OF SUCH COURTS FOR ITSELF AND IN RESPECT OF ITS PROPERTY WITH RESPECT TO SUCH
ACTION.  EACH PARTY HERETO IRREVOCABLY AGREES THAT VENUE WOULD BE PROPER IN SUCH COURT, AND HEREBY WAIVES ANY OBJECTION
THAT SUCH COURT IS AN IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF SUCH ACTION.  EACH PARTY HERETO FURTHER AGREES
THAT THE MAILING BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, OF ANY PROCESS REQUIRED BY ANY SUCH COURT SHALL CONSTITUTE
VALID AND LAWFUL SERVICE OF PROCESS AGAINST THEM, WITHOUT NECESSITY FOR SERVICE BY ANY OTHER MEANS PROVIDED BY STATUTE OR RULE
OF COURT.

 

14.  
 No Inconsistent Agreements.  No party
hereto will hereafter enter into any agreement, which is inconsistent with the rights granted to the Holder in this Note.

 

15.  
Third Parties.  Nothing herein expressed
or implied is intended or shall be construed to confer upon or give to any person or entity, other than the Holder and its permitted
successor and assigns, any rights or remedies under or by reason of this Note.

 

16.  
Waiver of Jury Trial.  EACH PARTY HERETO
HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS NOTE. EACH

    	 

    	 

    

PARTY HERETO CERTIFIES AND ACKNOWLEDGES
THAT (A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE HOLDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE HOLDER WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY HERETO UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS
OF THIS WAIVER, (C) EACH PARTY HERETO MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH PARTY HERETO HAS BEEN INDUCED TO ENTER INTO THIS
NOTE BY, AMONG OTHER THINGS, THE WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

17.  
Usury Savings Clause. Notwithstanding any
provision in this Note to the contrary, the total liability for payments of interest and payments in the nature of interest, including,
without limitation, all charges, fees, exactions, or other sums which may at any time be deemed to be interest, shall not exceed
the limit imposed by the usury laws of the jurisdiction governing this Note or any other applicable law. In the event the total
liability of payments of interest and payments in the nature of interest, including, without limitation, all charges, fees, exactions
or other sums which may at any time be deemed to be interest, shall, for any reason whatsoever, result in an effective rate of
interest, which for any month or other interest payment period exceeds the limit imposed by the usury laws of the jurisdiction
governing this Note, all sums in excess of those lawfully collectible as interest for the period in question shall, without further
agreement or notice by, between, or to any party hereto, be applied to the reduction of the outstanding principal balance due hereunder
immediately upon receipt of such sums by the Holder hereof, with the same force and effect as though the Company had specifically
designated such excess sums to be so applied to the reduction of the principal balance then outstanding, and the Holder hereof
had agreed to accept such sums as a penalty-free payment of principal; provided, however, that the Holder may, at any time and
from time to time, elect, by notice in writing to the Company, to waive, reduce, or limit the collection of any sums in excess
of those lawfully collectible as interest, rather than accept such sums as a prepayment of the principal balance then outstanding.
It is the intention of the parties that the Company does not intend or expect to pay, nor does the Holder intend or expect to charge
or collect any interest under this Note greater than the highest non-usurious rate of interest which may be charged under applicable
law.

 

18.  
Entire Agreement.  This Note (including
any recitals hereto) set forth the entire understanding of the parties with respect to the subject matter hereof, and shall not
be modified or affected by any offer, proposal, statement or representation, oral or written, made by or for any party in connection
with the negotiation of the terms hereof, and may be modified only by instruments signed by all of the parties hereto.

 

 

[Signature page to follow]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
this Note is executed by the undersigned as of the date hereof.

 

  

	VPR BRANDS, LP	 
	
        By: Soleil Capital Management LLC,

        its General Partner
	 
	 	 
	 	 
	By: /s/ Kevin Frija                                       	 
	Name: Kevin Frija	 
	Title:   Manager and Chief Executive Officer

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