Document:

Exhibit 10.4

    

     

    

    
      EXECUTION VERSION

       

    

    CONTINUING PERSONAL GUARANTY

     

    December 19, 2019

     

    FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in consideration of credit and/or financial accommodations
      heretofore or hereafter from time to time made or granted to BETTER CHOICE COMPANY INC., a Delaware corporation (“Borrower”), by BRIDGING FINANCE INC., as Administrative
      Agent (“Agent”), and the Lenders under the Facilities Agreement (as defined below) and their successors and assigns (collectively the “Creditors”), each of the undersigned Guarantors (each, a “Guarantor” and collectively, jointly and severally, the “Guarantors”) hereby furnishes its continuing guaranty (this “Guaranty”) of the Guaranteed
      Obligations (as hereinafter defined) as follows (capitalized terms used herein shall have the meaning assigned to them herein, and if not herein defined shall have the meaning assigned to them in the Facilities Agreement (as defined below)):

     

    1.          Guaranty.  Each Guarantor hereby absolutely and unconditionally guarantees, as a primary obligor and as a
      guaranty of payment and performance and not merely as a guaranty of collection, prompt payment when due, whether at stated maturity, by required prepayment, upon acceleration, demand or otherwise, and at all times thereafter, of any and all existing
      and future indebtedness and liabilities of every kind, nature and character, direct or indirect, absolute or contingent, liquidated or unliquidated, voluntary or involuntary and whether for principal, interest, premiums, fees indemnities, damages,
      costs, expenses or otherwise, of Borrower to the Creditors arising under that certain Loan Facilities Letter Agreement dated as of December 19, 2019 between Borrower, the Obligors party thereto, Agent, and the Lenders from time to time party thereto
      (the “Facilities Agreement”), the Credit Documents and any instruments, agreements or other documents of any kind or nature now or hereafter executed in connection with the Credit Documents (including all renewals, extensions, amendments, refinancings and other modifications thereof (howsoever fundamental) and all reasonable costs,
      attorneys’ fees and expenses incurred by the Creditors in connection with the collection or enforcement thereof), and whether recovery upon such indebtedness and liabilities may be or hereafter become unenforceable or shall be an allowed or
      disallowed claim under any proceeding or case commenced by or against any Guarantor or Borrower under the Bankruptcy Code (Title 11, United States Code), any successor
        statute or any other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, judicial management, scheme of arrangement, reorganization, or similar debtor relief laws
        of the United States or other applicable jurisdictions from time to time in effect and affecting the rights of creditors generally (collectively, “Debtor
          Relief Laws”), and including interest that accrues after the commencement by or against any Borrower of any proceeding under any Debtor Relief Laws
      (subject to the proviso in this sentence, collectively, the “Guaranteed Obligations”); provided
      that, the liability of the Guarantors hereunder shall be limited to an aggregate amount equal to the largest amount that would not render its obligations hereunder subject to avoidance under Section 548 of the Bankruptcy Code of the United States or
      any comparable provisions of any applicable state law or other applicable law.  Agent’s books and records showing the amount of the Guaranteed Obligations shall be admissible in evidence in any action or proceeding, and, absent any manifest error
      therein, shall be binding upon the Guarantors and conclusive for the purpose of establishing the amount of the Guaranteed Obligations.  This Guaranty shall not be affected by the genuineness, validity, regularity or enforceability of the Guaranteed
      Obligations or any instrument or agreement evidencing any Guaranteed Obligations, or by the existence, validity, enforceability, perfection, non-perfection or extent of any collateral therefor, or by any fact or circumstance relating to the
      Guaranteed Obligations which might otherwise constitute a defense to the obligations of the Guarantors under this Guaranty, and each Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to any or
      all of the foregoing.  The liability of John M. Word, III under this Guaranty (exclusive of liability under any other guaranties executed by the Guarantors) shall not exceed at any one time the total of FIFTEEN MILLION DOLLARS AND NO/100 ($15,000,000.00) for the amount of the Guaranteed Obligations (the “Word Maximum Amount”).  The liability of Lori Taylor under this Guaranty (exclusive of liability under any other guaranties executed by the Guarantors) shall not exceed at any one
      time the total of FOUR MILLION DOLLARS AND NO/100 ($4,000,000.00) for the amount of the Guaranteed Obligations (the “Taylor Maximum Amount”).  The liability of Michael Young under this Guaranty (exclusive of liability under any other guaranties executed by the Guarantors) shall not exceed at any one time the
      total of ONE MILLION DOLLARS AND NO/100 ($1,000,000.00) for the amount of the Guaranteed Obligations (the “Young Maximum Amount” and collectively, together with the Word Maximum Amount and the Taylor Maximum Amount, the “Maximum Guaranteed
          Amount”).  Each Guarantor hereby acknowledges that the Guaranteed Obligations of Borrower may at any time and from time to time exceed the Maximum Guaranteed Amount, and any amounts received by Agent from time to time from Borrower or
      any other source other than the Guarantors for application to the Guaranteed Obligations shall not reduce the Guarantors’ liability pursuant to this Section 1. Anything
      contained herein to the contrary notwithstanding, the obligations of each Guarantor hereunder at any time shall be limited to an aggregate amount equal to the largest amount that would not render its obligations hereunder subject to avoidance as a
      fraudulent transfer or conveyance under Section 548 of the Bankruptcy Code (Title 11, United States Code) or any comparable provisions of any similar federal or state law.

     

    
      
        

    

    2.          No Setoff or Deductions; Taxes; Payments.  Each Guarantor shall make all payments hereunder without setoff or counterclaim and free and clear of and without deduction for any taxes, levies, imposts, duties,
      charges, fees, deductions, withholdings, compulsory loans, restrictions or conditions of any nature now or hereafter imposed or levied by any jurisdiction or any political subdivision thereof or taxing or other authority therein unless such Guarantor
      is compelled by law to make such deduction or withholding.  If any such obligation (other than any such obligation arising with respect to taxes based on or measured by the income or profits of the Creditors) is imposed upon any Guarantor with
      respect to any amount payable by it hereunder, such Guarantor will pay to Agent, for the ratable benefit of all affected Creditors, on the date on which such amount is due and payable hereunder, such additional amount in U.S. dollars as shall be
      necessary to enable the Creditors to receive the same net amount which the Creditors would have received on such due date had no such obligation been imposed upon such Guarantor.  Each Guarantor will deliver promptly to Agent certificates or other
      valid vouchers for all taxes or other charges deducted from or paid with respect to payments made by such Guarantor hereunder.  The obligations of the Guarantors under
        this Section 2 shall survive the payment in full of the Guaranteed
        Obligations and termination of this Guaranty. At Agent’s option, all payments under this Guaranty shall be made in the United States.  The obligations hereunder shall not be affected by any acts of any legislative body or governmental
      authority affecting Borrower, including but not limited to, any restrictions on the conversion of currency or repatriation or control of funds or any total or partial expropriation of Borrower’s property, or by economic, political, regulatory or
      other events in the countries where Borrower is located.

     

    3.          Tax Indemnification.  Without prejudice to Section 2 (No Setoff or Deductions; Taxes; Payments) if any Creditor is required to
      make any payment of or on account of tax on or in relation to any sum received or receivable under this Guaranty (including any sum deemed for purposes of tax to be received or receivable by such Creditor whether or not actually received or
      receivable) or if any liability in respect of any such payment is asserted, imposed, levied or assessed against any Creditor, the Guarantors, shall, within three Business Days of demand of Agent or such Creditor, promptly indemnify such Creditor for
      any loss or liability suffered as a result, together with any interest, penalties, costs and expenses payable or incurred in connection therewith, provided that (a) the liability of John M. Word, III under this Section 3 is limited to a maximum of $100,000, and (b) this Section 3 shall not apply to:

     

    
      
        

    

    
      
        	

              	(i)	
                any Tax imposed on and calculated by reference to the net income actually received or receivable by the Creditors (but, for the avoidance of doubt, not including any sum deemed
                  for purposes of Tax to be received or receivable by the Creditors but not actually receivable) by the jurisdiction in which any Creditor is incorporated; or

              

      

    

     

    
      
        	

              	(ii)	
                any Tax imposed on and calculated by reference to the net income of the facility office of any Creditor actually received or receivable by any Creditor (but, for the avoidance of
                  doubt, not including any sum deemed for purposes of tax to be received or receivable by such Creditor but not actually receivable) by the jurisdiction in which its facility office is located.;

              

      

    

     

    
      
        	

              	(iii)	
                If any Creditor intends to make a claim under this Section 3 it shall notify Borrower of the event
                  giving rise to the claim.

              

      

    

     

    4.         Rights of Creditors.  Each Guarantor consents and agrees that the Creditors may, at any time and from time
      to time, without notice or demand to the Guarantors, and without affecting the enforceability or continuing effectiveness hereof:  (a) amend, extend, renew, compromise,
      discharge, accelerate or otherwise change the time for payment or the terms of the Guaranteed Obligations or any part thereof in accordance with the terms of the Guaranteed Obligations; (b) take, hold, exchange, enforce, waive, release, fail to
      perfect, sell, or otherwise dispose of any security for the payment of this Guaranty or any Guaranteed Obligations; (c) apply such security and direct the order or manner of sale thereof as Agent in its sole discretion may determine; and (d) release
      or substitute one or more of any endorsers or other Guarantors of any of the Guaranteed Obligations.  Without limiting the generality of the foregoing, each Guarantor consents to the taking of, or failure to take, any action which might in any manner
      or to any extent vary the risks of the Guarantors under this Guaranty or which, but for this provision, might operate as a discharge of any Guarantor.

     

    5.          Certain Waivers.  Each Guarantor waives (a) any defense arising by reason of any disability or other defense of Borrower or any other Guarantor, or the cessation from any cause whatsoever (including any act or
      omission of any Creditor) of the liability of Borrower; (b) any defense based on any claim that any Guarantor’s obligations exceed or are more burdensome than those of Borrower; (c) the benefit of any statute of limitations affecting any Guarantor’s
      liability hereunder; (d) any right to require any Creditor to proceed against Borrower, proceed against or exhaust any security for the Guaranteed Obligations, or pursue any other remedy in any Creditor’s power whatsoever; (e) any benefit of and any
      right to participate in any security now or hereafter held by Agent or any other Creditor; and (f) to the fullest extent permitted by law, any and all other defenses or
        benefits that may be derived from or afforded by applicable law limiting the liability of or exonerating the Guarantors or sureties.  Each Guarantor expressly waives all setoffs and counterclaims and all presentments, demands for payment or
        performance, notices of nonpayment or nonperformance, protests, notices of protest, notices of dishonor, and all other notices or demands of any kind or nature whatsoever with respect to the Guaranteed Obligations, and all notices of acceptance of this Guaranty or of the existence, creation, or incurrence of new or additional Guaranteed Obligations.

     

    6.          Obligations Independent.  The obligations of each Guarantor hereunder are those of primary obligor, and not merely as surety, and
        are independent of the Guaranteed Obligations and the obligations of any other Guarantor, and a separate action may be brought against any Guarantor to enforce this Guaranty whether or not Borrower or any other person or entity is joined as a
        party.

     

    
      
        

    

    7.          Subrogation.  No Guarantor shall exercise any right of subrogation, contribution, indemnity, reimbursement or similar rights with respect to any payments it makes under this
        Guaranty until all of the Guaranteed Obligations and any amounts payable under this Guaranty have been paid and performed in full and any commitments of the Creditors or facilities provided by the Creditors with respect to the Guaranteed
        Obligations are terminated.  If any amounts are paid to any Guarantor in violation of the foregoing limitation, then such amounts shall be held in trust for the benefit of the Creditors and shall forthwith be paid to Agent to reduce the amount of
        the Guaranteed Obligations, whether matured or unmatured.

     

    8.          Termination; Reinstatement.  This Guaranty is a continuing and irrevocable guaranty of all Guaranteed Obligations
        now or hereafter existing and shall remain in full force and effect until all Guaranteed Obligations and any other amounts payable under this Guaranty are paid in full in cash and any commitments of the Creditors or facilities provided by the
        Creditors with respect to the Guaranteed Obligations are terminated.  Notwithstanding the foregoing, this Guaranty shall continue in full force and effect or be revived, as the case may be, if any payment by or on behalf of Borrower or any
        Guarantor is made, in respect of the Guaranteed Obligations and such payment or any part thereof is subsequently invalidated, declared to be fraudulent or
        preferential, set aside or required (including pursuant to any settlement entered into by Agent in its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Laws, all as if
        such payment had not been made and whether or not Agent is in possession of or has released this Guaranty and regardless of any prior revocation, rescission, termination or reduction.  The obligations of the Guarantors under this Section 8 shall survive termination of this Guaranty.

     

    9.          Subordination.  Each Guarantor hereby subordinates the payment of all obligations and indebtedness of Borrower
        owing to the Guarantors, whether now existing or hereafter arising, including but not limited to any obligation of Borrower to any Guarantor as subrogee of Agent or resulting from any Guarantor’s performance under this Guaranty, to the payment in
        full in cash of all Guaranteed Obligations, provided that any such payment may be made by Borrower to any Guarantor if no default then exists under the Facilities Agreement or would result from such payment.  If any Creditor so requests, any such
        obligation or indebtedness of Borrower to any Guarantor shall be enforced and performance received by such Guarantor as trustee for Agent and the proceeds thereof shall be paid over to Agent on account of the Guaranteed Obligations, but without
        reducing or affecting in any manner the liability of such Guarantor under this Guaranty.

     

    10.        Stay of Acceleration.  In the event that acceleration of the time for payment of any of the Guaranteed Obligations
        is stayed, in connection with any case commenced by or against any Guarantor or Borrower under any Debtor Relief Laws or otherwise, all such amounts shall nonetheless be payable by such Guarantor immediately upon demand by any Creditor.

     

    11.       Expenses.  The Guarantors shall pay on Agent’s demand all Creditors’ out-of-pocket expenses (including attorneys’
        fees and expenses) in any way relating to the enforcement or protection of the Creditor’s rights under this Guaranty or in respect of the Guaranteed Obligations, including any incurred during any “workout” or restructuring in respect of the
        Guaranteed Obligations and any incurred in the preservation, protection or enforcement of any rights of the Creditors in any proceeding any Debtor Relief Laws.  The obligations of the Guarantors under this Section 11 shall survive the payment in full of the Guaranteed Obligations and termination of this
        Guaranty.

     

    12.        Miscellaneous.  No provision of this Guaranty may be waived, amended, supplemented or modified, except by a written instrument executed by Agent and the Guarantors.  No failure by the Creditors to exercise, and no delay in exercising, any right, remedy or power hereunder
        shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy or power hereunder preclude any other or further exercise thereof or the exercise of any other right, power or remedy.  The remedies herein provided
        are cumulative and not exclusive of any remedies provided by law or in equity.  The unenforceability or invalidity of any provision of this Guaranty shall not affect the enforceability or validity of any other provision herein.  Unless
      otherwise agreed by Agent and the Guarantors in writing, this Guaranty is not intended to supersede or otherwise affect any other guaranty now or hereafter given by the Guarantors for the benefit of the Creditors or any term or provision thereof.

     

    
      
        

    

    13.       Condition of Borrower.  Each Guarantor acknowledges and agrees that it has the sole responsibility for, and has adequate means
        of, obtaining from Borrower and any other Guarantor such information concerning the financial condition, business and operations of Borrower and any other Guarantor as such Guarantor requires, and that no Creditor has a duty, and no Guarantor is
        relying on any Creditor at any time, to disclose to any Guarantor any information relating to the business, operations or financial condition of Borrower or any other Guarantor (each Guarantor waiving any duty on the part of the Creditors to
        disclose such information and any defense relating to the failure to provide the same).

     

    14.        Representations and Warranties.  John M. Word III represents and warrants that he is a resident of the State of California. Lori Taylor represents and warrants that she is a resident of the State of Ohio. 
      Michael Young represents and warrants that he is a resident of the State of Florida. Each Guarantor represents and warrants, individually, that (a) this Guaranty (i) does not violate any agreement, instrument, law, regulation or order applicable to
      such Guarantor, (ii) does not require the consent or approval of any person or entity, including but not limited to any governmental authority, or any filing or registration of any kind and (iii) is the legal, valid and binding obligation of such
      Guarantor enforceable against such Guarantor in accordance with its terms, except to the extent that enforcement may be limited by applicable bankruptcy, insolvency and other similar laws affecting creditors’ rights generally; and (b) in executing
      and delivering this Guaranty, each Guarantor (i) has, without reliance on the Creditors or any information received from the Creditors and based upon such documents and information it deems appropriate, made an independent investigation of the
      transactions contemplated hereby and Borrowers, Borrowers’ business, assets, operations, prospects and condition, financial or otherwise, and any circumstances which may bear upon such transactions, Borrowers or the obligations and risks undertaken
      herein with respect to the Guaranteed Obligations, (ii) has adequate means to obtain from Borrowers on a continuing basis information concerning Borrowers, (iii) has full and complete access to the Credit Documents and any other documents executed in
      connection with the Credit Documents, and (iv) has not relied and will not rely upon any representations or warranties of the Creditors not embodied herein or any acts heretofore or hereafter taken by the Creditors (including but not limited to any
      review by the Creditors of the affairs of Borrowers).

     

    15.        Indemnification and Survival.  Without limitation on any other obligations of the Guarantors or remedies of the Creditors under this Guaranty, each Guarantor shall, to the fullest extent permitted by law,
      indemnify, defend and save and hold harmless each Creditor from and against, and shall pay on demand, any and all damages, losses, liabilities, and expenses (including attorneys’ fees) that may be suffered or incurred by any Creditor in connection
      with or as a result of any failure of any Guaranteed Obligations to be the legal, valid and binding obligations of Borrower enforceable against Borrower in accordance with their terms.  The obligations of the Guarantors under this Section 15 shall survive the payment in full of the Guaranteed Obligations and termination of this Guaranty.

     

    16.        Assignment.  This Guaranty shall be binding on, and shall inure to the benefit of the Guarantors, each Creditor, and their respective successors and assigns; provided that the Guarantors may not assign or transfer its rights or obligations under this Guaranty.  Without limiting the generality of the foregoing, any Creditor may assign, sell participations in or otherwise
      transfer its rights under the Credit Documents, as applicable, to any other person or entity, and the other person or entity shall then become vested with all the rights granted to such Creditor in this Guaranty or otherwise.

     

    
      
        

    

    17.         Captions.  The headings and captions in this Guaranty are for convenience only and shall not affect the interpretation or construction of this Guaranty.

     

    18.        GOVERNING LAW; Assignment; Jurisdiction; Notices.  THIS GUARANTY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK.  This Guaranty shall (a) bind each Guarantor and his or her successors and assigns, provided that no Guarantor may assign his or her rights or obligations under this Guaranty without the prior
        written consent of Agent (and any attempted assignment without such consent shall be void), and (b) inure to the benefit of each Creditor and its successors and assigns and any Creditor may, without notice to any Guarantor and without affecting any
        Guarantor’s obligations hereunder, assign, sell or grant participations in the Guaranteed Obligations and this Guaranty, in whole or in part.  Each Guarantor hereby irrevocably (i) submits to the non‐exclusive jurisdiction of any United States
        Federal or State court sitting in New York, New York in any action or proceeding arising out of or relating to this Guaranty, and (ii) waives to the fullest
        extent permitted by law any defense asserting an inconvenient forum in connection therewith.  Service of process by any Creditor in connection with such action or proceeding shall be binding on any Guarantor if sent to such Guarantor by registered
        or certified mail at its address specified on Annex I attached hereto or such other address as from time to time notified by such Guarantor.  Each Guarantor agrees that each Creditor may disclose to any assignee of or participant in, or any
        prospective assignee of or participant in, any of its rights or obligations of all or part of the Guaranteed Obligations any and all information in such Creditor’s possession concerning such Guarantor, this Guaranty and any security for this
        Guaranty.  All notices and other communications to any Guarantor under this Guaranty shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier to such
      Guarantor at its address set forth on Annex I attached hereto or at such other address in the United States as may be specified by such Guarantor in a written notice delivered to Agent at such office as Agent may designate for such purpose from time
      to time in a written notice to such Guarantor.

     

    19.        WAIVER OF JURY TRIAL; FINAL AGREEMENT.  TO THE EXTENT ALLOWED BY APPLICABLE LAW, EACH GUARANTOR AND EACH CREDITOR EACH
        IRREVOCABLY WAIVES TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING ON, ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE GUARANTEED OBLIGATIONS.  THIS GUARANTY REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
        CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

     

    20.       Foreign Currency.  If any claim arising under or related to this Guaranty is reduced to judgment
      denominated in a currency (the “Judgment Currency”) other than U.S. Dollars (the “Obligations Currency”),
      the judgment shall be for the equivalent in the Judgment Currency of the amount of the claim denominated in the Obligations Currency included in the judgment, determined as of the date of judgment.  The equivalent of any Obligations Currency amount
      in any Judgment Currency shall be calculated at the spot rate for the purchase of the Obligations Currency with the Judgment Currency quoted by Agent in the place of Agent’s choice at or about 8:00 a.m. on the date for determination specified above. 
      Guarantor shall indemnify the Creditors and hold the Creditors harmless from and against all loss or damage resulting from any change in exchange rates between the date any claim is reduced to judgment and the date of payment thereof by the
      Guarantors or any failure of the amount of any such judgment to be calculated as provided in this Section 20.

     

    
      
        

    

    21.       Right of Contribution.  Each Guarantor hereby agrees that to the extent that (a) John M. Word, III has made any
        payment under this Guaranty, and (b) each of Lori Taylor and Michael Young have made payments under this Guaranty totaling less than the Taylor Maximum Amount and the Young Maximum Amount, respectively, then John M. Word, III shall be entitled to
        seek and receive contribution from and against each other Guarantor, up to a maximum amount equal to the lesser of (i) the total amount of payments made under the Guaranty by John M. Word, III, and (ii) difference between (x) the Maximum Guaranteed
        Amount applicable to such other Guarantor and (y) the total payments made under this Guaranty by such other Guarantor. Such right of contribution may not be asserted until all of the Guaranteed Obligations have been indefeasibly paid in full and
        shall be subject to all other terms and conditions of this Guaranty. The provisions of this Section 21 shall in no respect limit the obligations and liabilities of any Guarantor to the Creditors, and each Guarantor shall remain liable to each Creditor for the full amount guaranteed by such Guarantor hereunder.

     

    22.        Severability.  If any provision of this Guaranty is or becomes prohibited or unenforceable in any jurisdiction,
        such prohibition or unenforceability shall not invalidate or render unenforceable the provision concerned in any other jurisdiction, nor shall it invalidate, affect, or impair any of the remaining provisions of this Guaranty.

     

    23.        Counterparts.  This Guaranty may be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any of the parties hereto may execute this Guaranty by signing any
      such counterpart.  Delivery of an executed counterpart of a signature page of this Guaranty by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Guaranty.

     

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    IN WITNESS WHEREOF, this
      the undersigned has caused this Continuing Guaranty to be duly executed as of the date first above written.

     

    	 	
            GUARANTORS

          
	 	 
	 	
            /s/ John M. Word

          
	 	
            JOHN M. WORD, III

          
	 	 
	 	
            /s/ Lori Taylor

          
	 	
            LORI TAYLOR

          
	 	 
	 	
            /s/ Michael Young

          
	 	
            MICHAEL YOUNG

          

    

    

    Signature Page to Better Choice Company – Continuing Personal Guaranty

    

    

    
      
        

    

    ANNEX I

     

    Guarantor Addresses

    

    John M. Word, III

    

    

    Lori Taylor

    

    

    Michael YoungExhibit 10.6

    

     

    

    
      Execution Version

    

    
       

      

      SUBSCRIPTION AGREEMENT

       

      

      This subscription agreement (this “Subscription Agreement”) is made as of December 19, 2019, by and among the Investors identified on the signature pages hereto (the “Investors”), and Better Choice Company Inc., a Delaware
        corporation (the “Company”), and the parties hereto agree as follows:

      

      

      
        
          	1.	
                  Definitions.

                

        

      

      

      

      In addition to the words and terms defined elsewhere in this Subscription Agreement, for all purposes of this Subscription Agreement, the following terms have the meanings set forth in this Section
        1:

      

      

      “Closing” means the closing of the purchase and sale of the Securities pursuant to Section 3.

      

      

      “Closing Date” means the earlier to occur of (a) December 19, 2019 and (b) the day on which all of the Transaction Documents have been executed and
        delivered by the applicable parties thereto, and all conditions precedent to Closing have been satisfied or waived.

      

      

      “Common Stock” means the common stock, par value $0.001 per share, of the Company.

      

      

      “Conversion Price” means the lower of (i) $4.00 per share or (ii) the IPO Price.

      

      

      “Conversion Privilege” means the right, at the option of the holder of Convertible Notes, to convert the principal amount of Convertible Notes into Common
        Stock at any time prior to the close of business on the last business day immediately preceding the two year anniversary of the issue date.

      

      

      “Convertible Notes” means, collectively, the subordinated convertible notes delivered to the Investors at the Closing in accordance with Section 3 hereof,
        which Convertible Notes shall bear interest at a rate of 10.0% per annum from the date of issue, payable quarterly in kind.

      

      

      “Convertible Note Shares” means shares of Common Stock issuable upon conversion of the Convertible Notes at the Conversion Price.

      

      

      “Halo” means Halo, Purely For Pets, Inc., a Delaware corporation.

      

      

      “Halo Acquisition” means the Company’s acquisition of one hundred percent (100%) of the issued and outstanding capital stock of Halo, Purely for Pets, Inc.

      

      

      “Halo Acquisition Agreement” means that certain Stock Purchase Agreement, dated
        October 15, 2019, by and among the Company, Halo, Purely For Pets, Inc., Thriving Paws, LLC, and HH-Halo LP, as amended by that that certain Amendment No. 1 to Stock Purchase Agreement, dated November 22, 2019, and as further amended by that
        certain Amendment No. 2 to Stock Purchase Agreement, dated December 19, 2019.

       

      

      
        
          

      

      “IPO Price” means the price at which the Common Stock was sold in the IPO.

      

      

      “Purchase Price Common Shares” means the shares of Common Stock issued as partial compensation to the Sellers pursuant to the Stock Purchase Agreement.

      

      

      “Registration Rights Agreement” means the Registration Rights Agreement, to be dated the Closing Date, among the Company, the Investors and any additional
        investors party thereto, substantially in the form attached hereto as Exhibit A.

      

      

      “Securities” means the Shares, the Convertible Notes, the Warrants, the Convertible Note Shares and the Warrant Shares.

      

      

      “Transaction Documents” means this Subscription Agreement, the Convertible Notes, the Warrants, the Registration Rights Agreement and any other documents or
        agreements executed in connection with the transactions contemplated hereunder.

      

      

      “Warrants” means, collectively, the Common Stock purchase warrants delivered to the Investors at the Closing in accordance with Section 3 hereof, which
        Warrants shall be exercisable for a period of 24 months from the date of the consummation of an IPO (as defined in the Convertible Notes), substantially in the form attached hereto as Exhibit B.

      

      

      “Warrant Exercise Price” means the greater of (i) $5.00 per share or (ii) the IPO Price.

      

      

      “Warrant Shares” means the shares of Common Stock issuable upon exercise of the Warrants at the Warrant Exercise Price.

      

      

      
        
          	2.	
                  Subscription.

                

        

      

      

      

      (a) The Company has authorized the sale and issuance to the Investors (the “Offering”) of the number of shares of Common Stock set forth on the signature page hereto (the “Shares”), the number of Convertible Notes set forth on the
        signature page hereto and a number of Warrants equal to the number of Convertible Notes on a one-to-62.5 basis, and the Company desires to issue and sell to Investor the Shares, the Convertible Notes and the Warrants as partial consideration for
        the payment of the Purchase Price (as such term is defined in the Halo Acquisition Agreement) on the Closing.

       

      

      (b) At the Closing, the Company and the Investors agree that the Investors will purchase from the Company and the Company will issue and sell to the Investor, upon
          the terms and conditions set forth herein, the number of Shares, Convertible Notes and Warrants as determined pursuant to Section 2(a). The Investor acknowledges that the Offering is not being underwritten.

      

      

      
        
          	3.	
                  Closing and Delivery of the Shares, Convertible Notes and Warrants. On the Closing Date, upon the terms and conditions set forth herein, the Company shall deliver to the Investors the Shares,
                      Convertible Notes and Warrants as determined pursuant to Section 2(a) simultaneously with the consummation of the Halo Acquisition as partial consideration for the payment of the Purchase Price. Upon satisfaction of the covenants and
                      conditions set forth herein, the Closing shall occur at the offices of Latham & Watkins LLP, 885 Third Avenue, New York, New York 10022, or such other location as the parties shall mutually agree.

                

           

          

        

      

      
        
          

      

      
        
          	4.	
                  Representations, Warranties and Covenants of the Company. The Company acknowledges, represents and warrants to, and agrees with, the Investors that:

                

        

      

      

      

      (a) The Company is duly incorporated and validly existing under the laws of the State of Delaware, with full requisite power and authority to conduct its business as it is currently
        being conducted and to own its assets; and has secured any other authorizations, approvals, permits and orders required by law of any governmental or administrative body to enter into this Subscription Agreement, to carry out the provisions and
        conditions hereof, and for the conduct by the Company of its business as it is currently being conducted, as contemplated hereby and in the Company‘s by-laws.

      

      

      (b) The Company has the requisite corporate power and authority and has taken all requisite corporate action necessary for, and no further action on the part of the Company, its
        officers, directors and shareholders is necessary for, (i) the authorization, execution and delivery of the Transaction Documents, (ii) the authorization of the performance of all obligations of the Company hereunder or thereunder, and (iii) the
        issuance and delivery of the Shares, Convertible Notes and Warrants.

      

      

      (c) The Shares, Convertible Note Shares and Warrant Shares (when issued in accordance with the terms of the Convertible Notes and the Warrants, respectively) to be issued and sold
        by the Company to the Investors under this Subscription Agreement have been duly authorized and the Shares, Convertible Note Shares and Warrant Shares (when issued in accordance with the terms of the Convertible Notes and the Warrants,
        respectively) when issued and delivered against payment therefor as provided in this Subscription Agreement, will be validly issued, fully paid and non-assessable and free of any preemptive or similar rights.

      

      

      (d) No authorization, approval, consent or license of any governmental regulatory body or authority is required for the valid authorization, issuance, sale and delivery of the
        Shares, Convertible Notes and Warrants subscribed for hereunder (other than as may be required under the securities or blue sky laws of the various states of the United States and jurisdictions outside the United States where the offering of such
        Securities is made).

       

      

      (e) The execution and delivery of this Subscription Agreement and the consummation of the transactions contemplated hereby will not: (i) result in a breach or violation of any of
        the terms and provisions of, or constitute a default under, any law, rule or regulation to which the Company or any subsidiary is subject, or by which any property or asset of the Company or any subsidiary is bound or affected, (ii) conflict with,
        result in any violation or breach of, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any right of termination, amendment, acceleration or cancellation (with or without
        notice, lapse of time or both) of, any agreement, lease, credit facility, debt, note, bond, mortgage, indenture or other instrument or obligation or other understanding to which the Company or any subsidiary is a party or by which any property or
        asset of the Company or any subsidiary is bound or affected, or (iii) result in a breach or violation of any of the terms and provisions of, or constitute a default under, the Company’s Certificate of Incorporation, except in the case of clauses
        (i) and (ii) such breaches, violations, defaults, or conflicts which are not, individually or in the aggregate, reasonably likely to result in a material adverse effect upon the business, properties, operations, condition (financial or otherwise)
        or results of operations of the Company and its subsidiaries, taken as a whole, or in its ability to perform its obligations under this Subscription Agreement.

       

      

      
        
          

      

      (f) This Subscription Agreement, when signed by the Company on the signature page hereof as contemplated hereby, shall be validly executed and delivered and shall be valid, binding
        and enforceable against it in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights in general and except that the equitable remedy of
        specific performance and other equitable remedies are subject to the discretion of the court in which they are sought.

      

      

      (g) With the exception of obligations under (i) a registration rights agreement, dated as of December 12, 2018, and (ii) a registration rights agreement, dated as of May 6, 2019 
        (as amended by the first amendment thereto, dated as of June 10, 2019), the Company is not in default in the performance of any obligation, agreement or condition contained in any of its governing documents, any indenture, mortgage, deed of trust,
        credit agreement, note or other evidence of indebtedness or any lease or other agreement or understanding, or any license, permit, franchise or certificate, to which the Company is a party or by which the Company is bound or to which the Company’s
        properties are subject, nor is the Company in violation of any statute, regulation, law, order, writ, injunction, judgment or decree to which it is subject, which default or violation would materially adversely affect the business or financial
        condition of the Company, or impair the Company’s ability to carry out its obligations under this Subscription Agreement or under its governing documents.

      

      

      (j) There is no litigation, investigation or other proceeding pending or, to the Company’s knowledge, threatened against the Company which, if adversely determined, would materially
        adversely affect the business, financial condition or prospects of the Company or the ability of the Company to perform its obligations under this Subscription Agreement.

      

      

      (k) To the extent offer and sale of the Securities pursuant to this Subscription Agreement is intended to be exempt from registration pursuant to Regulation S promulgated under the
        Securities Act (as defined below) (“Regulation S”), the Company has not engaged, nor will engage, in any directed selling efforts (as such term is defined in Regulation S) in the United
        States with respect to the Securities.

      

      

      (l) The authorized capital stock of the Company immediately upon the consummation of the transactions contemplated by the Subscription Agreement shall consist of:

      

      

      
        
          	

                	i.	
                  2,900,000 shares of preferred stock (the “Preferred Stock”) of which:

                

        

      

      

      

      (A) 2,900,00 shares shall have been duly designated Series E Preferred Stock, of which 1,387,378 shares are duly and validly issued and outstanding, fully paid and non-assessable,
        with no personal liability attaching to the ownership thereof;

       

      

      
        
          

      

      
        
          	

                	ii.	
                  88,000,000 shares shall have been duly designated as Common Stock, of which 47,480,905 shares are duly and validly issued and outstanding, fully paid and non-assessable, with no personal liability attaching to
                    the ownership thereof;

                

        

      

      

      

      
        
          	

                	iii.	
                  7,733,000 shares of Common Stock shall have been duly reserved for issuance upon exercise of options issued pursuant to the 2019 Incentive Award Plan;

                

        

      

      

      

      
        
          	

                	iv.	
                  9,329,992 shares of Common Stock shall have been duly reserved for issuance upon exercise of the outstanding warrants;

                

        

      

      

      

      
        
          	

                	v.	
                  2,152,023 shares of Common Stock shall have been duly reserved for issuance upon the closing of the Offering;

                

        

      

      

      

      
        
          	

                	vi.	
                  4,438,000 shares of Common Stock shall have been duly reserved for issuance upon exercise of the Warrants and 4,438,000 shares of Common Stock shall have been duly reserved for issuance upon conversion of the
                    Convertible Notes; and

                

        

      

      

      

      
        
          	5.	
                  Representations, Warranties and Covenants of each of the Investors. As subscriber to this Subscription Agreement, each Investor acknowledges, represents and warrants to, and agrees with, the Company that:

                

        

      

      

      

      (a) Such Investor has full right, power, authority and capacity to enter into this Subscription Agreement and to consummate the transactions contemplated hereby and has taken all necessary
        corporate action to authorize the execution, delivery and performance of this Subscription Agreement.

       

      

      (b) Such Investor acknowledges its understanding and agreement that the Shares, the Convertible Notes and Warrants are being offered in a transaction not involving any public offering within the
        United States in reliance on an exemption from registration within the meaning of Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and such Securities have
        not been and will not be registered  under, or registered or qualified by a prospectus under any other securities laws, and, accordingly, may not be reoffered, resold, pledged, hypothecated or otherwise transferred unless an exemption from such
        registration or prospectus requirement is available. Such Investor understands that the Company does not intend, and has no obligation, to register the Securities under the Securities Act or register or qualify such Securities pursuant to a
        prospectus under any other securities laws or otherwise to assist such Investor in complying with any exemption from the registration or prospectus requirements of federal, state or other securities laws or obtaining any such opinion.

       

      

      (c) Such Investor acknowledges that the Company is relying on such Investor’s representations and warranties below in connection with this Subscription Agreement. Each Investor represents and
        warrants to the Company as follows:

       

      

      
        
          

      

      
        
          	

                	i.	
                  Such Investor has all requisite power and authority to enter into this Subscription Agreement and perform all obligations required to be performed by such Investor hereunder. The signature on this Subscription Agreement is genuine,
                    and the signatory has been duly authorized to execute the same, and this Subscription Agreement constitutes a legal, valid and binding obligation of such Investor, enforceable in accordance with its terms.

                

        

      

      

      

      
        
          	

                	ii.	
                  Such Investor is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D promulgated under the Securities Act and has completed, executed and delivered to the Company, the Investor Questionnaire in the form
                    attached hereto as Exhibit C.

                

        

      

      

      

      
        
          	

                	iii.	
                  Such Investor realizes that the basis for exemption would not be available if the Offering was part of a plan or scheme to evade registration provisions of the Securities Act or any applicable state or federal securities laws.

                

        

      

      

      

      
        
          	

                	iv.	
                  Such Investor is subscribing for, and acquiring, the Securities hereunder solely for such Investor’s own beneficial account for investment and not with a view to, or for resale in connection with, any distribution or public offering
                    within the meaning of the Securities Act.

                

        

      

      

      

      
        
          	

                	v.	
                  Such Investor acknowledges and understands that the Securities may not be resold by such Investor unless such resale is registered under the Securities Act or such resale is effected pursuant to a valid exemption from the
                    registration requirements of the Securities Act.

                

        

      

      

      

      
        
          	

                	vi.	
                  Such Investor has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Company.  Such Investor’s financial situation is such that such Investor
                    can afford to bear the economic risk of holding the Securities for an indefinite period of time, and can afford to suffer the complete loss of an investment in the Company. Such Investor understands that it must bear the economic risk
                    of an investment for an indefinite period of time because, among other reasons, the offering and sale of the Securities have not been registered under the Securities Act and, therefore, the Securities cannot be sold unless it is
                    subsequently registered under the Securities Act or an exemption from such registration is available.

                

        

      

      

      

      
        
          	

                	vii.	
                  Such Investor has adequately analyzed the risks of an investment in the Company and the Securities and determined, based upon Such Investor’s own judgment, due diligence (and has sought such accounting, legal and tax advice as such
                    Investor has considered necessary to make an informed investment decision) and not upon any view expressed by any other person or entity, that an investment in the Company and the Securities are a suitable investment for such Investor
                    and that such Investor has the financial ability at this time and in the foreseeable future to bear the economic risk of a total loss of such Investor’s investment in the Company and the Securities, has adequate means for providing for
                    its current needs and contingencies, and has no need for liquidity with respect to an investment in the Company.

                

           

          

        

      

      
        
          

      

      
        
          
            
              
                
                  	

                        	viii.	
                          Such Investor has had a reasonable opportunity to ask questions of and receive answers from a person or persons acting on behalf of the Company concerning the Offering and the business, financial condition, results of
                            operations and prospects of the Company. Such Investor has had access to such information concerning the Company and the Securities as it deems necessary to make an informed investment decision concerning the purchase of the
                            Securities.

                        

                   

                  

                

              

            

          

        

      

      

      
        
          	

                	ix.	
                  Such Investor is unaware of, and is in no way relying on, any form of general solicitation or general advertising, including, without limitation, any article, notice, advertisement or other communication published in any newspaper,
                    magazine or similar media or broadcast over television or radio, or electronic mail over the Internet, in connection with the Offering and is not subscribing for Shares, Convertible Notes and Warrants and did not become aware of the
                    Offering through or as a result of any seminar or meeting to which such Investor was invited by, or any solicitation of a subscription by, a person not previously known to such Investor in connection with investments in securities
                    generally.

                

           

          

        

      

      

      
        
          	

                	x.	
                  To the extent the offer and sale of the Securities pursuant to this Subscription Agreement is intended to be exempt from registration pursuant to Regulation S, such Investor represents, warrants and agrees that such Investor: (i) is
                    not a U.S. Person, as such term is defined in Regulation S; (ii) is outside the United States at the time the buy order pursuant to this Agreement is originated and this Agreement is executed and delivered; (iii) will not, during the
                    period commencing on the date hereof and ending on the six (6) months anniversary of such date, or such shorter period as may be permitted by Regulation S or other applicable securities law (“Compliance Period”), offer, sell, pledge or otherwise transfer the Securities in the United States, or to a U.S. Person for the account or benefit of a U.S. Person, or otherwise in a manner that is not in compliance
                    with Regulation S; (iv) after the expiration of the Compliance Period, will offer, sell, or otherwise transfer the Securities only pursuant to registration under the Securities Act or an available exemption therefrom and, in accordance
                    with all applicable state and foreign securities laws; and (v) has not engaged in, and prior to the expiration of the Compliance Period will not engage in, any short selling of or any hedging transaction with respect to the Securities
                    in the United States.

                

           

          

        

      

      (d) Such Investor will not sell or otherwise transfer any Securities except pursuant to a registration of the Securities under the Securities Act or in a transaction exempt from, the registration requirements of the
        Securities Act.  In particular, such Investor is aware that the Securities are “restricted securities,” as such term is defined in Rule 144 promulgated under the Securities Act (“Rule 144”),

        and they may not be sold pursuant to Rule 144 unless all of the conditions of Rule 144 are met. The Company covenants that it will use its commercially reasonable efforts to timely file all reports and other documents required to be filed by it
        under the Securities Act and the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations promulgated by the Securities and Exchange Commission
        (or, if the Company is not required to file such reports, it will, upon the request of such Investor, make publicly available such information as necessary to permit sales pursuant to Rule 144 under the Securities Act), and it will use commercially
        reasonable efforts to take such further action as Investor may reasonably request.  Such Investor understands that the Company or its transfer agent may establish procedures for approval of transfers, including transfers sought to be permitted
        under Rule 144, which may result in delays in desired sales or transfers by such Investor.

       

      

      
        
          

      

      (e) Such Investor understands that the Securities have not been and will not be registered under the Securities Act by reason of their issuance in transactions exempt from the registration and prospectus delivery
        requirements of the Securities Act, the availability of which exemption or exemptions depends upon, among other things, the bona fide nature of the investment intent as expressed by such Investor herein. Such Investor acknowledges that, to the
        extent all or part of the Securities (or other securities issued upon any transfer of the Securities) shall be stamped or otherwise imprinted with a legend in substantially the following form (the “Restrictive Legend”) for as long as such Securities are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act:

       

      

      THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
        ACT OF 1933, AS AMENDED, AND, ACCORDINGLY, MAY NOT BE TRANSFERRED UNLESS (I) SUCH SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144 OR OTHER AVAILABLE
        EXEMPTION, OR (III) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

      

      

      (h)  Such Investor’s signature page sets forth all securities of the Company held or beneficially owned by such Investor as of the date hereof. Such Investor does not hold or beneficially own any other securities of
        the Company, except as indicated on the signature page hereto.

      

       

      

      
        
          	6.	
                  Conditions to Obligations of the Company and the Investors:

                

        

      

       

      

      
        
          	

                	(a)	
                  The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

                

        

      

       

      
        
          	

                	i.	
                  the accuracy in all material respects on the Closing Date of the representations and warranties of each Investor contained herein;

                

        

      

       

      
        
          	

                	ii.	
                  all obligations, covenants and agreements of each Investor required to be performed at or prior to the Closing Date shall have been performed; and

                

        

      

       

      
        
          	

                	iii.	
                  the consummation of the Halo Acquisition.

                

        

      

       

      
        
          	

                	(b)	
                  The obligations of each Investor hereunder in connection with the Closing are subject to the following conditions being met:

                

           

          

        

      

      
        
          

      

      
        
          	

                	i.	
                  the accuracy in all material respects on the Closing Date of the representations and warranties of the Company contained herein;

                

        

      

       

      
        
          	

                	ii.	
                  all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed;

                

        

      

       

      
        
          	

                	iii.	
                  the delivery by the Company of duly executed copies of the Transactions Documents and evidence, reasonably acceptable to each Investor, that the Shares, Convertible Notes and Warrants have been issued in book-entry or certificated
                    form, as applicable.

                

           

          

        

      

      
        
          	7.	
                  Miscellaneous.

                

        

      

      

      

      (a) Entire Agreement; Modifications. Except as otherwise provided herein, this Subscription Agreement constitutes the entire understanding and agreement
        between the parties with respect to its subject matter and there are no agreements or understandings with respect to the subject matter hereof which are not contained in this Subscription Agreement. This Subscription Agreement may be modified only
        in writing signed by the Company and each Investor.

       

      

      (b) Counterparts. This Subscription Agreement may be executed in any number of counterparts, all of which shall be deemed an original, but all of which
        together shall constitute one and the same instrument and shall become effective when counterparts have been signed by each party and delivered to the other parties hereto, it being understood that all parties need not sign the same counterpart.
        Execution may also be made by delivery of a facsimile or e-mail, which shall be deemed an original.

      

      

      (c) Notices. All notices or other communications required or permitted to be provided hereunder shall be in writing and shall be deemed effectively given
        (i) upon personal delivery to the party to be notified, (ii) when sent by confirmed e-mail or facsimile if sent during normal business hours of the recipient, if not, then on the next business day, (iii) five days after having been sent by
        registered or certified mail, return receipt requested, postage prepaid, or (iv) one day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be
        sent to the Company or the Investors, as applicable, at the address for such recipient listed on the signature pages hereto or at such other address as such recipient has designated by two days advance written notice to the other parties hereto.

       

      

      (d) Third Party Beneficiaries.  This Subscription Agreement is intended for the benefit of the parties hereto and their respective successors and permitted
        assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other person.

      

      

      (e) Governing Law. This Subscription Agreement shall be governed by, and construed in accordance with, the internal laws of the State of New York without
        regard to the choice of law principles thereof (other than sections 5-1401 and 5-1402 of the General Obligations Laws).

      

      

      (f) WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY
        AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

       

      

      
        
          

      

      (g) Each party agrees to cooperate fully with the other party hereto and to execute such further instruments, documents and agreements and to give such further written assurance as may be
        reasonably requested by the other party to evidence and reflect the transactions described herein and contemplated hereby and to carry into effect the intents and purposes of this Subscription Agreement.

       

      

      [Signature pages follow]

       

      

    

    
      
        
          

      

      IN WITNESS WHEREOF, the parties hereto have executed this Subscription Agreement effective as of the date first written above.

      

      

      	

            	
              BETTER CHOICE COMPANY INC.

            
	

            	 
	

            	
              By:

            	

            
	

            	
              Name:

            	

            
	

            	
              Title:

            	

            
	

            	
              Address:

            	

            
	

            	 	

            
	

            	
              Email 

              Address:

            	

            

      

      

      
        
          

      

      IN WITNESS WHEREOF, the parties hereto have executed this Subscription Agreement effective as of the date first written above.

      

      

      	

            	
              INVESTOR:

            
	

            	
              [investor name]

            
	

            	

            
	

            	
              By:

            	

            
	

            	
              Name:

            	

            
	

            	
              Title:

            	

            
	

            	
              Share 

              Amount:

            	

            
	

            	
              Purchase Price:

            	

            
	

            	
              Beneficially 

              Owned 

              Securities 

              of the 

              Company:

            	

            
	

            	
              Address:

            	

            
	

            	

            	

            
	

            	
              Email 

              Address:

            	

            

       

      

      
        
          

      

      Exhibit A

       

      Form of Registration Rights Agreement

      

      

      
        
          

      

      Exhibit B

       

      Form of Warrants

       

      

      
        
          

      

      Exhibit C

       

      INVESTOR QUESTIONNAIRE

       

      To: Better Choice Company Inc.

      

      

      This Investor Questionnaire (“Questionnaire”) must be completed by each potential investor in connection with the offer and sale of the common stock, par value $0.001 per
        share (the “Securities”), of Better Choice Company Inc., a Delaware corporation (the “Company”).  The Securities are being offered and sold by the Company in the
        United States without registration under the Securities Act of 1933, as amended (the “Securities Act”), and the securities laws of certain states, in reliance on the exemptions contained in Section 4(a)(2)
        of the Securities Act and on Regulation D promulgated thereunder and in reliance on similar exemptions under applicable state laws.  The Company must determine that a potential investor meets certain suitability requirements before offering or
        selling the Securities to such investor.  The purpose of this Questionnaire is to assure the Company that each investor will meet the applicable suitability requirements.  The information supplied by you will be used in determining whether you meet
        such criteria, and reliance upon the private offering exemptions from registration is based in part on the information herein supplied.

      

      

      This Questionnaire does not constitute an offer to sell or a solicitation of an offer to buy any security.  By signing this Questionnaire, you will be authorizing the Company to provide a completed copy of this
        Questionnaire to such parties as the Company deems appropriate in order to ensure that the offer and sale of the Securities will not result in a violation of the Securities Act or the securities laws of any state and that you otherwise satisfy the
        suitability standards applicable to purchasers of the Securities.  All potential investors must answer all applicable questions and complete, date and sign this Questionnaire.  Please print or type your responses and attach additional sheets of
        paper if necessary to complete your answers to any item.

      

      

      PART A. BACKGROUND INFORMATION

       

      
        	Name of Beneficial Owner of the Securities:	

              	

              

        

        

        	Business Address:	

              	

              
	

              	
                (Number and Street)

              	

              

        

        

        	
                City:

              	

              	

              	State:	

              	

              	Zip Code:	

              	

              

        

        

        	Telephone Number:	

              	

              

        

        

        	
                If a corporation, partnership, limited liability company, trust or other entity:

              

        

        

        	Type of entity:	

              	

              

        

        

        	Country/State of formation:	

              	

              	 Approximate Date of formation:	

              	

              

        

          
            
              
                	Were you formed for the purpose of investing in the securities being offered?	Yes

                      	☐	

                      	No

                      	☐

              

            

          

          

          

        

        	If an individual:

        	Residence Address: 	

              	

              
	

              	(Number and Street)	

              

        

        

        
          	
                  City:

                	

                	

                	State:	

                	

                	Zip Code:	

                	

                

        

        

        

        
          	Telephone Number:	

                	

                

        

        

        

        	Age:	

              	

              	Citizenship:	

              	

              	Where registered to vote:	

              	

              

        

        

      

      

      
        
          

      

      Set forth in the space provided below the state(s), if any, in the United States in which you maintained your residence during the past two years and the dates during which you resided in each state:

      

      

      
        
          	Are you a director or executive officer of the Company?

                	Yes

                	☐	

                	No

                	☐

        

      

      

      

      
        	Social Security or Taxpayer Identification No.:	

              	

              

      

      

      

      

      PART B. ACCREDITED INVESTOR QUESTIONNAIRE

       

        

      In order for the Company to offer and sell the Securities in conformance with state and federal securities laws, the following information must be obtained regarding your investor status. Please initial

          each category applicable to you as a purchaser of Securities of the Company.

      

      

      	

            	☐	
              (1)

            	
              A bank as defined in Section 3(a)(2) of the Securities Act, or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or
                fiduciary capacity;

            
	

            	

            	

            	

            
	

            	☐	
              (2)

            	
              A broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”);

            
	

            	

            	

            	

            
	

            	☐	
              (3)

            	
              An insurance company as defined in Section 2(a)(13) of the Securities Act;

            
	

            	

            	

            	

            
	

            	☐	
              (4)

            	
              An investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that act;

            
	

            	

            	

            	

            
	

            	☐	
              (5)

            	
              A Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958;

            
	

            	

            	

            	

            
	

            	☐	
              (6)

            	
              A plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total
                assets in excess of $5,000,000;

            
	

            	

            	

            	

            
	

            	☐	
              (7)

            	
              An employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such act, which is
                either a bank, savings and loan association, insurance company or registered investment adviser, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by
                persons that are accredited investors;

            
	

            	

            	

            	

            
	

            	☐	
              (8)

            	
              A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;

            
	

            	

            	

            	

            
	

            	☐	
              (9)

            	
              An organization described in Section 501(c)(3) of the Internal Revenue Code, a corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the
                Securities, with total assets in excess of $5,000,000;

            
	

            	

            	

            	

            
	

            	☐	
              (10)

            	
              A trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Securities, whose purchase is directed by a sophisticated person who has such knowledge and experience
                in financial and business matters that such person is capable of evaluating the merits and risks of investing in the Corporation;

            

       

      

      
        
          

      

      	

            	☐	
              (11)

            	
              A natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his purchase exceeds $1,000,000 (exclusive of the value of that person’s primary residence);

            
	

            	

            	

            	

            
	

            	☐	
              (12)

            	
              A natural person who had an individual income in excess of $200,000 in each of the two most recent years, or joint income with that person’s spouse in excess of $300,000, in each of those years, and has a
                reasonable expectation of reaching the same income level in the current year;

            
	

            	

            	

            	

            
	

            	☐	
              (13)

            	
              An executive officer or director of the Company;

            
	

            	

            	

            	

            
	

            	☐	
              (14)

            	
              An entity in which all of the equity owners qualify under any of the above subparagraphs. If the undersigned belongs to this investor category only, list the equity owners of the undersigned, and the investor
                category which each such equity owner satisfies.

            

       

      

      PART C. BAD ACTOR QUESTIONNAIRE

      

      

      
        
          	1.	
                  During the past ten years, have you been convicted of any felony or misdemeanor that is related to any securities matter?

                

        

      

       

      

      
        	

              	Yes	☐	(If yes, please continue to Question 1.a)
	

              	

              	

              	

              
	

              	No	☐	 (If no, please continue to Question 2)

         

        

      

      
        
          	

                	a)	
                   If your answer to Question 1 was “yes”, was the conviction related to: (i) the purchase or sale of any security; (ii) the making of any false filing with the Securities and Exchange Commission (the “SEC”);

                    or (iii) the conduct of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid solicitor of purchasers of securities?

                

        

      

      

      

      
        	

              	Yes	☐	No	☐

         

        

      

       

      
        
          	2.	
                  Are you subject to any court injunction or restraining order entered during the past five years that is related to any securities matter?

                

        

      

      

      

      
        	

              	Yes	☐	(If yes, please continue to Question 2.a)
	

              	

              	

              	

              
	

              	No	☐	(If no, please continue to Question 3)

         

        

      

      
        
          	

                	a)	
                   If your answer to Question 2 was “yes”, does the court injunction or restraining order currently restrain or enjoin you from engaging or continuing to engage in any conduct or practice related to: (i) the purchase or sale of any
                    security; (ii) the making of any false filing with the SEC; or (iii) the conduct of an underwriter, broker, dealer, municipal securities dealer, investment adviser or paid solicitor of purchasers of securities?

                

           

          

          
            	

                  	Yes	☐	No	☐

          

           

          

        

      

      
        
          	3.	
                  Are you subject to any final order1 of any governmental commission, authority, agency or officer2(2) related to any securities, insurance or banking matter?

                

        

      

       

      
        

       

      

      1 A “final order” is defined under Rule 501(g) as a written directive or declaratory statement issued by a federal or state agency described in Rule 506(d)(1)(iii) under applicable statutory authority that provides for notice and an
        opportunity for a hearing, and that constitutes a final disposition or action by such federal or state agency.

       

      

    

    
      2 You may limit your response to final orders of: (i) state securities commissions (or state agencies/officers that perform a similar function); (ii) state authorities that supervise or examine banks, savings associations or credit
        unions; (iii) state insurance commissions (or state agencies/officers that perform a similar function); (iv) federal banking agencies; (v) the U.S. Commodity Futures Trading Commission; or (vi) the U.S. National Credit Union Administration.

       

      

      
        
          

      

      
        	

              	Yes	☐	(If yes, please continue to Question 3.a)
	

              	

              	

              	

              
	

              	No	☐	(If no, please continue to Question 4)

         

        

        
          	

                	a)	
                  If your answer to Question 3 was “yes”:

                

        

         

        

      

      
        
          	

                	i)	
                  Does the order currently bar you from: (i) associating with an entity regulated by such commission, authority, agency or officer; (ii) engaging in the business of securities, insurance or banking; or (iii) engaging in savings
                    association or credit union activities?

                

           

          

          
            
              	

                    	Yes	☐	No	☐

            

          

           

          

        

      

      
        
          	

                	ii)	
                  Was the order (i) entered within the past ten years and (ii) based on a violation of any law or regulation that prohibits fraudulent, manipulative or deceptive conduct?

                

           

          

          
            
              	

                    	Yes	☐	No	☐

            

          

           

          

        

      

      
        
          	4.	
                  Are you subject to any SEC disciplinary order?3(3)

                

           

          

          
            	

                  	Yes	☐	(If yes, please continue to Question 4.a)
	

                  	

                  	

                  	

                  
	

                  	No	☐	(If no, please continue to Question 5)

          

           

          

        

      

      
        
          	

                	a)	
                   If your answer to Question 4 was “yes”, does the order currently: (i) suspend or revoke your registration as a broker, dealer, municipal securities dealer or investment adviser; (ii) place limitations on your activities, functions
                    or operations; or (iii) bar you from being associated with any particular entity or class of entities or from participating in the offering of any penny stock?

                

        

      

       

      
        
          	5.	
                  Are you subject to any SEC cease and desist order entered within the past five years?

                

        

      

       

      

      
        	

              	Yes	☐	(If yes, please continue to Question 5.a)
	

              	

              	

              	

              
	

              	No	☐	(If no, please continue to Question 6)

         

        

      

      
        
          	

                	a)	
                   If your answer to Question 5 was “yes”, does the order currently require you to cease and desist from committing or causing a violation or future violation of (i) any knowledge-based anti-fraud provision of the U.S. federal
                    securities laws4 or (ii) Section 5 of the Securities Act?

                

           

          

          
            
              
                	

                      	Yes	☐	No	☐

                 

                

                
                  

                 

                

              

            

          

           

        

      

       

      3 You may limit your response to disciplinary orders issued pursuant to Sections 15(b) or 15B(c) of the Exchange Act or Section 203(e) or (f) of the Investment Advisers Act of 1940 (the “Advisers Act”).

    

    
       

        

      4 Including (but not limited to) Section 17(a)(1) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, Section 15(c)(1) of the Exchange Act, and Section 206(1) of the Advisers Act or any other rule or
        regulation thereunder.

       

      

      
        
          

      

      
        
          	6.	
                  Have you been suspended or expelled from membership in, or suspended or barred from association with a member of, a registered national securities exchange or a registered national or affiliated securities
                    association?

                

           

          

          
            	

                  	Yes	☐	
                     (If yes, please describe the basis of any such suspension or expulsion and any related details in the space provided under Question 10 below)5

                  
	

                  	

                  	

                  	

                  
	

                  	No	☐	
                     (If no, please continue to Question 7)

                  

             

            

          

        

      

      
        
          	7.	
                  Have you registered a securities offering with the SEC, made an offering under Regulation A or been named as an underwriter in any registration statement or Regulation A offering statement filed with the
                    SEC?

                

           

          

          
            	

                  	Yes	☐	
                    (If yes, please continue to Question 7.a)

                  
	

                  	

                  	

                  	

                  
	

                  	No	☐	
                    (If no, please continue to Question 8)

                  

          

           

          

          
            
              	

                    	a)	
                      If your answer to Question 7 was “yes”:

                    

            

          

           

          

        

      

      
        
          	

                	i)	
                  During the past five years, was any such registration statement or Regulation A offering statement the subject of a refusal order, stop order or order suspending the Regulation A exemption?

                

           

          

          
            	

                  	Yes	☐	No	☐

          

           

          

        

      

      

      
        
          	

                	ii)	
                  Is any such registration statement or Regulation A offering statement currently the subject of an investigation or proceeding to determine whether a stop order or suspension order should be issued?

                

           

          

          
            	

                  	Yes	☐	No	☐

          

           

          

        

      

      

      
        
          	8.	
                  Are you subject to a U.S. Postal Service false representation order entered within the past five years?

                

           

          

          
            	

                  	Yes	☐	No	☐

          

           

          

        

      

      

      
        
          	9.	
                  Are you currently subject to a temporary restraining order or preliminary injunction with respect to conduct alleged by the U.S. Postal Service to constitute a scheme or device for obtaining money or
                    property through the mail by means of false representations?

                

           

          

          
            	

                  	Yes	☐	No	☐

          

           

          

        

      

      

      
        
          	10.	
                  In the space provided below, describe any facts or circumstances that caused you to answer “yes” to any Question (indicating the corresponding Question number).   Attach additional pages if necessary.

                

           

          

        

      

      
        
          	A.	
                  FOR EXECUTION BY AN INDIVIDUAL:

                

           

          

          
            	

                  	

                  	

                  	
                    By:

                  	

                  

            	

                  	

                  	

                  	

                  	

                  
	

                  	

                  	

                  	
                    Print Name:

                  	

                  
	

                  	

                  	

                  	

                  	

                  
	

                  	
                    Date

                  	

                  	

                  	

                  

          

           

          

        

      

    

     
      

    
       

        

      5 In providing additional information, please explain whether or not the suspension or expulsion resulted from “any act or omission to act constituting conduct inconsistent with just and equitable principles of trade.”

       

      

      
        
          

      

       

      
        	
                B.

              	
                FOR EXECUTION BY AN ENTITY:

              

      

      

      

      
        	

              	

              	

              	
                Entity Name:

              	

              

        

        

        	

              	

              	

              	
                By:

              	

              

        

        

        	

              	

              	

              	
                Print Name:

              	

              

        

        

        	

              	

              	

              	
                Title:

              	

              
	

              	

              	

              	

              
	

              	
                Date

              	

              	

              

         

        

      

      

      
        
          	C.	
                  ADDITIONAL SIGNATURES (if required by partnership, corporation or trust document):

                

        

      

      

      

      
        	

              	

              	

              	
                Entity Name:

              	

              

        

        

        	

              	

              	

              	
                By:

              	

              

        

        

        	

              	

              	

              	
                Print Name:

              	

              

        

        

        	

              	

              	

              	
                Title:

              	

              
	

              	

              	

              	

              
	

              	
                Date

              	

              	

              

      

      

      

      
        	

              	

              	

              	
                Entity Name:

              	

              

        

        

        	

              	

              	

              	
                By:

              	

              

        

        

        	

              	

              	

              	
                Print Name:

              	

              

        

        

        	

              	

              	

              	
                Title:

              	

              
	

              	

              	

              	

              
	

              	
                Date

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