Document:

exh10_3.htm

 

 

Exhibit 10.3

 

August 18, 2015

 

 

 

Bank of America, N.A. CityPlace 1

185 Asylum Street

Hartford, Connecticut 06103

 

John B. Baker

1050 Buckingham Street

Waterbury, CT 06795

 

Re:  Amendment to Subordinated Note

 

Ladies and Gentlemen:

 

Reference is made to (a) the Second Amended and Restated Subordinated Promissory Note dated April 5, 2005 in the original principal amount of $4,700,000 (the “Subordinated Note”) made by Crystal Rock Holdings, Inc., formerly known as Vermont Pure Holdings, Ltd. (“Holdings”), payable to the order of John B. Baker (the “Payee”), which Subordinated Note was collaterally assigned by the Payee to Bank of America, N.A. (the “Bank”) by the Allonge Endorsement to Second Amended and Restated Subordinated Promissory Note executed by the Payee, which Allonge Endorsement was dated April 5, 2005, and (b) the Subordination and Pledge Agreement dated as of April 5, 2005 (the “Subordination Agreement”) that is referred to in the Subordinated Note.  Capitalized terms used herein that are not defined herein have the meanings given to such terms in the Subordinated Note or the Subordination Agreement, as applicable.

 

Payment Terms of the Subordinated Note are hereby waived and amended as follows: the obligation of Holdings to make the August 20, 2015 interest payment in cash is hereby waived, and the parties agree that, in lieu of such cash interest payment, the amount of such interest payment shall be added to the principal amount of the Subordinated Promissory Note and shall not be considered an overdue amount.

 

Except as otherwise expressly provided by this agreement, all of the respective terms and provisions of the Subordinated Note and the Subordination Agreement shall remain the same. The Subordinated Note, as amended hereby, and the Subordination Agreement shall continue in full force and effect. This agreement and the Subordinated Note shall be read and construed as one instrument.

 

By its execution and delivery of this agreement, Bank of America, N.A., agrees and consents to the waiver and amendment in the second paragraph notwithstanding any contrary covenant in Holdings’ loan documents with Bank of America, N.A.

 

 

  

  

  

 

 

This agreement is intended to take effect under, and shall be construed according to and governed by, the internal laws of the State of Connecticut (without reference to principles of conflicts or choice of law).  This agreement may be executed in any number of counterparts, but all such counterparts shall together constitute but one instrument.  A facsimile or other electronic transmission of an executed counterpart shall have the same effect as the original executed counterpart.

 

 

	 	Very truly yours,
	 	 
	 	Crystal Rock Holdings, Inc.
	 	(formerly known as Vermont Pure Holdings, Ltd.).
	 	 
	 	By: /s/ Peter K. Baker                                                  
	 	Name: Peter K. Baker
	 	Title: Chief Executive Officer
	 	 

  

  

 

 

Agreed to:

/s/ John B. Baker                                           

John B. Baker

 

Bank of America, N.A.

 

By: /s/ Matthew E. Hummel                         

Name: Matthew E. Hummel 

Title: Senior Vice President

[Signature Page to Amendment of Subordinated Note]EX-10.1

 Exhibit 10.1 

AMENDMENT 
 TO THE CECO
ENVIRONMENTAL CORP. 
 2007 EQUITY INCENTIVE PLAN, AS AMENDED 

AUGUST 20, 2015 
 Pursuant
to Section 17 of the CECO Environmental Corp. 2007 Equity Incentive Plan, as amended (the “Plan”), the Board of Directors (the “Board”) of CECO Environmental Corp. (the “Company”) hereby amends Section 17 of
the Plan, effective immediately, by the deletion of the second sentence of the first paragraph of Section 17 and the addition of the following language in place thereof (capitalized terms used and not defined herein shall have the meanings
ascribed to them in the Plan): 
 “Except as otherwise provided in Section 14, the Committee and the Company shall not, without
obtaining stockholder approval: (a) amend the terms of outstanding Options to reduce the exercise price of such outstanding Options; (b) cancel outstanding Options in exchange for Options with an exercise price that is less than the
exercise price of the original Options; or (c) cancel outstanding Options with an exercise price above the current stock price in exchange for cash or other securities.” 

This Amendment shall be effective immediately, and except as set forth in this Amendment, all of the terms of the Plan shall remain unchanged
and in effect. 
 * * *Exhibit 10.80

 

EXECUTION VERSION

 

THIS WARRANT AND THE EQUITY INTERESTS
THAT MAY BE PURCHASED HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES
LAWS OF ANY STATE, AND MAY NOT BE SOLD OR TRANSFERRED, OR OFFERED FOR SALE OR TRANSFER, EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
THEREUNDER OR PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS THEREOF.

 

TWINLAB CONSOLIDATED HOLDINGS, INC.

 

	No. W-5	August 14, 2015

 

Warrant

 

This Warrant (the “Warrant”)
certifies that, for value received, PENTA MEZZANINE SBIC FUND I, LP, a Delaware limited partnership, and its permitted transferees,
successors and assigns (the “Holder”), is entitled to purchase from TWINLAB CONSOLIDATED HOLDINGS, INC., a Nevada
corporation (the “Company”), 807,018 shares of common stock of the Company (subject to any adjustments pursuant
to Section 3.3) issuable upon the full exercise of this Warrant at the purchase price of $0.01 per share (the “Exercise
Price”), at any time prior to 5:00 P.M. Eastern Time on June 30, 2020 (the “Expiration Date”).

 

ARTICLE I

DEFINITIONS

 

SECTION 1.1 Definitions.
Capitalized terms used but not defined herein shall have the meaning given to them in the Purchase Agreement. As used in this Warrant,
the following terms shall have the following meanings:

 

“Adjusted EBITDA”
shall mean EBITDA plus any expenses relating to Acquisitions (as defined in the Purchase Agreement) following the Effective Date
(as defined in the Purchase Agreement) of the Purchase Agreement, plus severance payments and other costs relating to permanent
headcount reductions, all as determined by GAAP.

 

“Applicable
Law” means all provisions of laws, statutes, ordinances, rules, regulations, permits, certificates or orders of any Governmental
Authority applicable to the Person in question or any of its assets or property, and all judgments, injunctions, orders and decrees
of all courts and arbitrators in proceedings or actions in which the Person in question is a party or by which any of its assets
or properties are bound.

 

“Assignment
Form” shall mean the assignment form attached as Annex 2 hereto.

 

“Business Day”
shall have the meaning set forth in the Purchase Agreement.

 

“Change in Control”
shall have the meaning set forth in the Purchase Agreement.

 

    	 	1	 

     

    

 

“Current Holder’s
Equity Interest” means 807,018 shares of common stock of the Company issuable upon the full exercise of this Warrant,
minus any Equity Interest previously issued pursuant to the exercise of this Warrant and subject to any adjustment pursuant to
Section 3.3. 

 

“Company”
shall have the meaning set forth in the Preamble.

 

“Delivery Date”
shall have the meaning given to such term in Section 3.2.

 

“EBITDA”
shall have the meaning set forth in the Purchase Agreement.

 

“Equity Interest”
shall have the meaning set forth in the Purchase Agreement.

 

“Exchange Act”
shall mean the Securities Exchange Act of 1934, as amended from time to time, and any successor statute.

 

“Exchange Form”
shall mean the exchange form attached as Annex 3 hereto.

 

“Executive Officer”
shall mean, with respect to the Company, its Chief Executive Officer, President, Chief Financial Officer or Chief Operating Officer.

 

“Exercise Form”
shall mean the exercise form attached as Annex 1 hereto.

 

“Exercise Price”
shall have the meaning set forth in the Preamble.

 

“Expiration
Date” shall have the meaning set forth in the Preamble.

 

“Fair Market
Value” shall, except in the event of a private placement by the Company of its common stock, mean (i) the trading volume
weighted average closing price of the common stock of Company for the twenty (20) trading days immediately preceding the applicable
date in question, as quoted on (a) a domestic securities exchange, (b) NASDAQ Stock Market or (c) a domestic over-the-counter market,
which trades are reported by Pink OTC Markets Inc. or any similar successor organization or any other over-the-counter market in
the United States, as the case may be; or (ii) in the event that the common stock of the Company is not trading on a market such
that a value can be derived under subsection (i) of this definition as of the applicable date in question, a valuation per share
of the common stock of the Company as determined in accordance with Generally Accepted Valuation Principles by an independent third-party
valuation firm mutually agreed upon by the parties (and if the parties cannot mutually agree on a valuation firm, one of the “big
four” accounting firms chosen by the Holder). In the event of a private placement by the Company of its common stock, “Fair
Market Value” shall mean the average price per share of common stock in such private placement, including any warrants, options
or other agreements providing the right to purchase shares of the Company’s common stock.

 

“Fiscal Year”
shall have the meaning set forth in the Purchase Agreement.

 

“Fully-Diluted
Basis” shall have the meaning set forth in the Purchase Agreement.

 

    	 	2	 

     

    

 

“Governmental
Authority” shall have the meaning set forth in the Purchase Agreement.

 

“Holder”
shall have the meaning set forth in the Preamble.

 

“Holder's Equity
Interest” shall have the meaning given to such term in Section 3.3.

 

“Indebtedness”
shall have the meaning set forth in the Purchase Agreement.

 

“NASDAQ”
shall mean the NASDAQ Stock Market.

 

“Organizational
Documents” shall mean, with respect to any Person, each instrument or other document that (a) defines the existence of
such Person, including its articles or certificate of incorporation, formation or organization, as filed or recorded with an applicable
Governmental Authority or (ii) governs the internal affairs of such Person, including its by-laws or its operating, partnership
or limited liability company agreement, in each case as amended, supplemented or restated.

 

“Person”
shall have the meaning set forth in the Purchase Agreement.

 

“Purchase Agreement”
shall have the meaning set forth in the Preamble.

 

“Qualified Assignment”
shall mean any of the following: (a) an assignment to a transferee acquiring at least 25% of the Equity Interests subject to the
Warrant (subject to adjustment for stock splits, stock dividends, recapitalizations and similar events); or (b) an assignment to
an Affiliate of the Holder.

 

“Rights Agreement”
shall have the meaning given to such term in Section 4.1.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended from time to time, and any successor statute.

 

“Taxes”
means all taxes, charges, fees, levies or other assessments, however denominated and whether imposed by a taxing authority within
or without the United States, including all net income, gross income, gross receipts, sales, use, ad valorem, goods and services,
capital, transfer, franchise, profits, license, withholding, payroll, employment, employer health, excise, estimated, severance,
stamp, occupation, property or other taxes, custom duties, fees, assessments or charges of any kind whatsoever, together with any
interest and any penalties, additions to tax or additional amounts imposed by any taxing authority whether arising before, on or
after the date hereof.

 

“Warrant”
or “Warrants” shall mean this Warrant.

 

“Warrant Register”
shall have the meaning given to such term in Section 2.1.

 

SECTION 1.2 Interpretation.
Unless the context of this Warrant clearly requires otherwise, the masculine, feminine or neuter gender and the singular or plural
number shall be deemed to include the others whenever the context so requires. Accounting terms used but not otherwise defined
herein have the meanings given to them under GAAP. The terms “include,” “includes” and “including”
shall be deemed to be followed by the phrase “without limitation.” The words “hereof,” “herein,”
“hereunder,” and similar terms in this Warrant refer to this Warrant as a whole and not to any particular provision
of this Warrant. References to “Articles”, “Sections,” “Subsections,” “Exhibits,”
“Preamble,” “Annexes,” and “Schedules” are to articles, sections, subsections, exhibits, preamble,
annexes and schedules, respectively, of this Warrant, unless otherwise specifically provided. References to “days”
and “months” refer to calendar days and calendar months unless otherwise expressly designated (i.e., business days
or particular 30-day periods). The captions contained herein are for convenience only and shall not control or affect the meaning
or construction of any provision of this Agreement. The term “dollars” or “$” means United States Dollars.

 

    	 	3	 

     

    

 

ARTICLE II

FORM; EXCHANGE FOR WARRANTS; TRANSFER; TAXES

 

SECTION 2.1 Warrant
Register. Each Warrant issued, exchanged or transferred pursuant to the Purchase Agreement shall be registered in a warrant
register (the “Warrant Register”). The Warrant Register shall set forth the number of each Warrant, the name
and address of the holder thereof, and the Current Holder’s Equity Interest for which the Warrant is then exercisable. The
Warrant Register will be maintained by the Company and will be available for inspection by the Holder at the principal office of
the Company or such other location as the Company may designate to the Holder in the manner set forth in Section 5.1 hereof.
The Company shall be entitled to treat the Holder as the owner in fact thereof for all purposes and shall not be bound to recognize
any equitable or other claim to or interest in such Warrant on the part of any other Person.

 

SECTION 2.2 Exchange
of Warrants for Warrants.

 

(a)The Holder may
exchange this Warrant for another Warrant or Warrants of like kind and tenor representing in the aggregate the right to purchase
the same Current Holder’s Equity Interest which could be purchased pursuant to the Warrant being so exchanged. In order to
effect an exchange permitted by this Section 2.2, the Holder shall deliver to the Company such Warrant accompanied by an
Exchange Form in the form attached hereto as Annex 3 signed by the Holder thereof specifying the number and denominations
of Warrants to be issued in such exchange and the names in which such Warrants are to be issued. Within ten (10) Business Days
of receipt of such a request, the Company shall issue, register and deliver to the Holder thereof each Warrant to be issued in
such exchange.

 

(b)Upon receipt
of evidence reasonably satisfactory to the Company (an affidavit of the Holder, including indemnification reasonably acceptable
to the Company) of the ownership and the loss, theft, destruction or mutilation of any Warrant or, in the case of any such mutilation,
upon surrender of such Warrant, the Company shall (at its expense) execute and deliver in lieu of such Warrant a new Warrant of
like kind and tenor representing the same rights represented by and dated the date of such lost, stolen, destroyed or mutilated
Warrant. Any such new Warrant shall constitute an original contractual obligation of the Company, whether or not the allegedly
lost, stolen, mutilated or destroyed Warrant shall be at any time enforceable by any Person.

 

    	 	4	 

     

    

 

(c)The Company
shall pay all Taxes (other than any applicable income or similar Taxes payable by a Holder of a Warrant) attributable to an exchange
of a Warrant pursuant to this Section 2.2; provided, however, that the Company shall not be required to pay
any Tax which may be payable in respect of any transfer involved in the issuance of any Warrant in a name other than that of the
Holder of the Warrant being exchanged.

 

SECTION 2.3 Transfer
of Warrant.

 

(a)Subject to Section
2.3(c) hereof and the Purchase Agreement, each Warrant and the rights thereunder may be transferred by the Holder thereof by
delivering to the Company such Warrant accompanied by a properly completed Assignment Form in the form of Annex 2. Within
ten (10) Business Days of receipt of such Assignment Form the Company shall issue, register and deliver to the new Holder, subject
to Section 2.3(c) hereof a new Warrant or Warrants of like kind and tenor representing in the aggregate the right to purchase
the same Current Holder’s Equity Interest which could be purchased pursuant to the Warrant being transferred. In all cases
of transfer by an attorney, the original power of attorney, duly approved, or a copy thereof, duly certified, shall be deposited
and remain with the Company. In case of a transfer by executors, administrators, guardians or other legal representatives, duly
authenticated evidence of their authority shall be produced and may be required to be deposited and remain with the Company in
its discretion.

 

(b)Each Warrant
issued in accordance with this Section 2.3 shall bear the restrictive legend set forth on the face of this Warrant, unless
the Holder or transferee thereof supplies to the Company an opinion of counsel, reasonably satisfactory to the Company, that the
restrictions described in such legend are no longer applicable to such Warrant.

 

(c)The transfer
of Warrants and any Equity Interest purchased thereunder shall be permitted, so long as such transfer is pursuant to a transaction
that complies with, or is exempt from, the provisions of the Securities Act, and the Company may require an opinion of counsel
in form and substance reasonably satisfactory to it to such effect prior to effecting any transfer of Warrants or any Equity Interest
purchased thereunder.

 

ARTICLE III

EXERCISE OF WARRANT; EXCHANGE FOR EQUITY INTEREST

 

SECTION 3.1 Exercise
of Warrants. On any Business Day prior to the Expiration Date, the Holder may exercise this Warrant, in whole or in part, by
delivering to the Company this Warrant accompanied by a properly completed Exercise Form in the form of Annex 1 and a check
in an aggregate amount equal to the applicable Exercise Price.

 

SECTION 3.2 Issuance
of Equity Interest.

 

(a)The Company
represents and warrants that the authorized Equity Interest of the Company consists solely of (i) 5,000,000,000 shares of common
stock, par value $0.001 per share, of which only 229,105,265 common shares have been issued and 219,505,594 common shares remain
outstanding as of the date hereof and (ii) 500,000,000 shares of preferred stock, of which no preferred shares have been issued
as of the date hereof. The shares of common stock of the Company issued and outstanding as of the date hereof are duly authorized,
validly issued, fully paid and non-assessable. The delivery to the Holder of certificates representing the Equity Interest that
the Holder purchases pursuant to the exercise of this Warrant shall grant to the Holder good and valid title to the Equity Interest
represented by such certificate, free and clear of any and all liens, pledges, security interests, charges or encumbrances of any
kind or nature or any option, warrant or trust having the practical effect of any of the foregoing.

 

    	 	5	 

     

    

 

(b)Immediately
upon the exercise of this Warrant in accordance with Section 3.1, the Company (the “Delivery Date”) shall
issue the Equity Interest that the Holder has purchased pursuant to such exercise, deliver to the Holder the certificates representing
such Equity Interest and reflect the issuance of such Equity Interest, which Equity Interest shall be duly authorized, validly
issued, outstanding, fully paid and non-assessable, in the Company’s shareholder records (maintained by the Company or its
duly appointed transfer agent), whereupon the Holder shall be deemed for all purposes, effective as of the Delivery Date, to be
a holder of record and beneficial owner of the Equity Interest that it has purchased pursuant to such exercise.

 

(c)If a Holder
shall exercise this Warrant for less than all of the Equity Interest which could be purchased or received hereunder, the Company
shall issue to the Holder, within five (5) Business Days of the Delivery Date, a new Warrant of like kind and tenor to this Warrant
evidencing the right to purchase the remaining Equity Interest represented by the Warrant. This Warrant shall be cancelled upon
surrender thereof pursuant to Section 3.1.

 

(d)The Company
shall pay all Taxes (other than any applicable income or similar Taxes payable by a Holder of a Warrant) attributable to the initial
issuance of any Equity Interest upon the exercise or exchange of this Warrant or any successor Warrant; provided, however,
that the Company shall not be required to pay any Tax which may be payable in respect of any transfer involved in the issuance
of a successor to this Warrant in a name other than that of the Holder of the Warrant being exercised or exchanged.

 

(e)Except as set
forth in any document that is un-redacted and publicly filed with the U.S. Securities and Exchange Commission, neither the Company
nor its Subsidiaries has any liabilities or obligations of any nature (whether absolute, accrued, contingent or otherwise and whether
due or to become due) which are not fully reflected or reserved against on the balance sheet as of June 30, 2014 in accordance
with GAAP, except for liabilities and obligations incurred in the ordinary course of business and consistent with past practice
since the date thereof.

 

SECTION 3.3 Adjustment
of Holder’s Equity Interest. The Equity Interest issuable upon exercise of this Warrant (such Equity Interest is referred
to herein as the “Holder's Equity Interest”) shall be subject to adjustment from time to time in accordance
with this Section 3.3.

 

    	 	6	 

     

    

 

SECTION 3.3.1
Issuance of Additional Equity Interest; Capital Reorganization or Capital Reclassifications. If, at any time after the
date hereof, the Equity Interests of the Company shall be changed into or exchanged for a different number or kind of shares of
stock or other securities of the Company or of another corporation, whether through reorganization, recapitalization, stock split-up,
combination of shares, merger or consolidation (including, without limitation, any subdivision or combination of Equity Interest),
then in each case the Company shall cause effective provision to be made so that this Warrant shall, effective as of the effective
date of such event retroactive to the record date, if any, of such event, be exercisable or exchangeable for the kind and number
of equity securities, cash or other property to which a holder of the Equity Interest deliverable upon exercise or exchange of
this Warrant would have been entitled upon such event and any such provision shall include adjustments in respect of such securities
or other property that shall be equivalent to the adjustments provided for in this Warrant with respect to such Warrant.

 

SECTION 3.3.2Consolidations
and Mergers; Dissolution.

 

(a)If, at any time
after the date hereof, the Company shall consolidate with, merge with or into, or sell all or substantially all of its assets or
property to, another Person, then the Company shall cause effective provision to be made so that each Warrant shall, effective
as of the effective date of such event retroactive to the record date, if any, of such event, be exercisable or exchangeable for
the kind and number of shares of stock, membership or other equity interests, other securities, cash or other property to which
a holder of the Equity Interest deliverable upon exercise or exchange of such Warrant would have been entitled upon such event.
The Company shall not consolidate or merge unless, prior to consummation, the successor corporation (if other than the Company)
assumes the obligations of this paragraph by written instrument executed and mailed to the Holder at the Holder’s address
set forth in Section 5.1. A sale or lease of all or substantially all the assets of the Company for a consideration (apart from
the assumption of obligations) consisting primarily of securities is a consolidation or merger for the foregoing purposes.

 

(b)In case a voluntary
or involuntary dissolution, liquidation, or winding up of the Company (other than in connection with a consolidation or merger
covered by subsection (a) above) is at any time proposed, the Company shall give at least 30 days’ prior written notice to
the Holder. Such notice shall contain: (1) the date on which the transaction is to take place; (2) the record date (which shall
be at least 30 days after the giving of the notice) as of which the Holder will be entitled to receive distributions as a result
of the transaction; (3) a brief description of the transaction; (4) a brief description of the distributions to be made to the
Holder as a result of the transaction and (5) an estimate of the fair value of the distributions. On the date of the transaction,
if it actually occurs, this Warrant and all rights hereunder shall terminate.

 

SECTION 3.3.3Notice;
Calculations; Etc. Whenever the Equity Interest issuable hereunder shall be adjusted as provided in this Section 3.3,
the Company shall provide to the Holder a statement, signed by an Executive Officer, describing in detail the facts requiring such
adjustment and setting forth a calculation of the Equity Interest applicable to each Warrant after giving effect to such adjustment.
All calculations under this Section 3.3 shall be made to the nearest one hundredth of a cent or to the nearest one-tenth
of a unit, as the case may be.

 

    	 	7	 

     

    

 

ARTICLE IV

CERTAIN OTHER RIGHTS

 

SECTION 4.1 Registration
Rights.

 

(a)At any time
at which this Warrant or the Equity Interest underlying the same remains outstanding, upon the request of the Holder, the Company
will enter into a registration rights agreement with Holder (the “Rights Agreement”). Such Rights Agreement
shall provide that beginning October 1, 2015, if the Company is eligible for the use of a registration statement on Form S-3, then
the Holder shall have the right to request an initial registration and thereafter on a quarterly basis after such initial registration
shall have been declared effective by the U.S. Securities and Exchange Commission, registration of its Equity Interests on Form
S-3 or any similar short-form registration (each, a "Demand Registration"). The Rights Agreement will provide
that each request for a Demand Registration shall specify the approximate number of Equity Interests requested to be registered
and that the Company shall cause a registration statement on Form S-3 (or any successor form) to be filed within twenty (20) days
after the date on which the initial request is given and shall use its reasonable best efforts to cause such Registration Statement
to be declared effective by the Commission as soon as practicable thereafter. The Rights Agreement will provide that the Company
may postpone for up to ninety (90) days the filing or effectiveness of a registration statement for a Demand Registration if the
Company determines in its reasonable good faith judgment that such Demand Registration would (i) materially interfere with a significant
acquisition, corporate reorganization or other similar transaction involving the Company; (ii) require premature disclosure of
material information that the Company has a bona fide business purpose for preserving as confidential; or (iii) render the Company
unable to comply with requirements under the Securities Act or Exchange Act. The Rights Agreement shall contain such other terms
and conditions applicable to the Holder no less favorable to the Holder than registration rights made available to any other holder
of any Equity Interest or other equity security of the Company.

 

(b)The rights to
cause the Company to register Equity Interests pursuant hereto may be assigned (but only with all related obligations) by the Holder
in a Qualified Assignment; provided, that, (i) the Company is, upon or within a reasonable time after such transfer, furnished
with written notice of the name and address of such transferee and the securities with respect to which such registration rights
are being assigned, (ii) such transferee or assignee agrees in writing to be bound by and subject to the terms and conditions of
this Warrant, (iii) such assignment shall be effective only if immediately following such transfer the further disposition of such
securities by transferee or assignee is restricted under the Securities Act, and (iv) such assignment shall be effective only if
immediately following such transfer such Equity Interests continue to be Equity Interests of the Company.

 

    	 	8	 

     

    

 

ARTICLE V

MISCELLANEOUS

 

SECTION 5.1 Notices.
Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given shall
be in writing and shall be made by electronic mail, personal service, facsimile or reputable courier service:

 

		(a)	If to the Company, to:

 

TWINLAB CONSOLIDATED HOLDINGS, INC.

600 East Quality Drive

American Fork, UT 84003

Attention: Mark Jaggi, Chief Financial Officer

Facsimile: (801) 763-0789 

e-mail: MJaggi@twinlab.com

 

and

 

TWINLAB CONSOLIDATED HOLDINGS, INC.

632 Broadway, Suite 201

New York, NY 10012

Attention: Richard Neuwirth, Chief Legal Officer

Facsimile: (212) 260-1853

e-mail: RNeuwirth@twinlab.com

 

with a copy to:

 

VARNUM LLP

Bridgewater Place, P.O. Box 352

Grand Rapids, MI 49501

Attention: Mary Kay Shaver

Facsimile: (616) 336-7000

e-mail: mkshaver@varnumlaw.com

 

and

 

WILK AUSLANDER LLP

1515 Broadway, 43rd Floor

New York, NY 10036

Attention: Joel I. Frank

Facsimile: (212) 752-6380

e-mail: jfrank@wilkauslander.com

 

		(b)	If to the Holder, to:

 

			PENTA MEZZANINE SBIC FUND I, L.P.

20 N. Orange Ave, Suite 1550

Orlando, FL 32801

Attention: Seth Ellis, Principal

Facsimile: (407) 641-9286

e-mail: sellis@floridamezz.com

 

			with a copy to:

 

KATTEN MUCHIN ROSENMAN LLP

575 Madison Avenue

New York, New York 10022

Attention: Angela Batterson, Esq.

e-mail: angela.batterson@kattenlaw.com

 

    	 	9	 

     

    

 

Unless otherwise specifically provided herein,
any notice or other communication shall be deemed to have been given when delivered in person or by courier service, upon receipt
of electronic mail or upon receipt of facsimile.

 

SECTION 5.2 No Voting
Rights: Limitations of Liability. This Warrant shall not entitle the holder thereof to any voting rights or, except as otherwise
provided or referenced herein, other rights of an equity owner of the Company. No provision hereof, in the absence of affirmative
action by the Holder to purchase its Equity Interest, and no enumeration herein of the rights or privileges of the Holder shall
give rise to any liability of the Holder for the Exercise Price of the Equity Interest acquirable by exercise hereunder or as a
stockholder of the Company.

 

SECTION 5.3 Amendments
and Waivers. Any provision of this Warrant may be amended or waived, but only pursuant to a written agreement signed by the
Company and the Holder.

 

SECTION 5.4 Severability.
If any provision of this Agreement shall be held to be invalid or unenforceable, such invalidity or unenforceability shall attach
only to such provision and shall not in any way affect or render invalid or unenforceable any other provision of this Agreement,
and such provision shall be deemed to be restated to reflect the parties' original intentions as nearly as possible in accordance
with Applicable Law(s).

 

SECTION 5.5 Specific
Performance. The Holder shall have the right to specific performance by the Company of the provisions of this Warrant, in addition
to any other remedies it may have at law or in equity. The Company hereby irrevocably waives, to the extent that it may do so under
Applicable Law, any defense based on the adequacy of a remedy at law which may be asserted as a bar to the remedy of specific performance
in any action brought against the Company for specific performance of this Warrant by the Holder.

 

SECTION 5.6 Binding
Effect. This Warrant shall be binding upon and inure to the benefit of the Company, the Holder and their respective successors
and assigns.

 

SECTION 5.7 Counterparts.
This Warrant may be executed in several counterparts, and/or by the execution of counterpart signature pages that may be attached
to one or more counterparts of this Warrant, and all so executed shall constitute one agreement binding on all of the parties hereto,
notwithstanding that all of the parties hereto are not signatory to the original or the same counterpart. In addition, any counterpart
signature page may be executed by any party wherever such party is located, and may be delivered by telephone facsimile or by electronic
mail in PDF format, and any such transmitted signature pages may be attached to one or more counterparts of this Warrant, and such
faxed or sent by electronic mail signature(s) shall have the same force and effect, and be as binding, as if original signatures
had been executed and delivered in person.

 

    	 	10	 

     

    

 

SECTION 5.8 Entire
Agreement. This Warrant, together with the other documents and instruments entered into by the parties thereto in connection
therewith, constitute the entire understanding among the parties hereto with respect to the subject matter hereof and supersedes
any prior agreements, written or oral, with respect thereto. Notwithstanding anything to the contrary set forth herein, upon the
issuance of this Warrant, Twinlab Consolidated Holdings, Inc. Warrant No. W-4 shall be cancelled and of no further force and effect
and shall be superseded and replaced in all respects by this Warrant.

 

SECTION 5.9 Governing
law. THIS WARRANT SHALL BE GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT
OF LAWS RULES AND PRINCIPLES. THE PARTIES HEREBY EXPRESSLY AND IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE STATE AND FEDERAL
COURTS LOCATED IN NEW YORK COUNTY, NEW YORK FOR THE PURPOSE OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION
WITH, THIS WARRANT, AND IRREVOCABLY AGREE TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION. THE
PARTIES HEREBY EXPRESSLY AND IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH THEY MAY HAVE OR HEREAFTER
MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT ANY PARTY HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM
JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT
IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE PARTY HEREBY IRREVOCABLY WAIVES SUCH IMMUNITY IN
RESPECT OF ITS OBLIGATIONS UNDER THIS WARRANT.

 

SECTION 5.10 Expenses.
The Company will promptly (and in any event within thirty (30) days of receiving any statement or invoice therefor) pay all reasonable
fees, expenses and costs relating hereto, including, but not limited to, (i) the cost of reproducing this Warrant, (ii) the fees
and disbursements of counsel to the Holder in preparing this Warrant, (iii) all transfer, stamp, documentary or other similar
Taxes, assessments or charges levied by any governmental or revenue authority in respect hereof or any other document referred
to herein, (iv) fees and expenses (including, without limitation, reasonable attorneys' fees) incurred in respect of the enforcement
by the Holder of the rights granted to the Holder under this Warrant, and (v) the expenses relating to the consideration, negotiation,
preparation or execution of any amendments, waivers or consents requested by the Company pursuant to the provisions hereof, whether
or not any such amendments, waivers or consents are executed.

 

SECTION 5.11 Attorneys'
Fees. In any action or proceeding brought by a party to enforce any provision of this Warrant, the prevailing party shall be
entitled to recover the reasonable costs and expenses incurred by it or him in connection therewith (including reasonable attorneys’
and paralegals’ fees and costs incurred before and at any trial or arbitration and at all appellate levels), as well as all
other relief granted or awarded in such action or other proceeding.

 

    	 	11	 

     

    

 

SECTION 5.12 Filings.
The Company shall, at its own expense, promptly execute and deliver, or cause to be executed and delivered, to the Holder all applications,
certificates, instruments and all other documents and papers that the Holder may reasonably request in connection with the obtaining
of any consent, approval, qualification, or authorization of any Federal, provincial, state or local government (or any agency
or commission thereof) necessary or appropriate in connection with, or for the effective exercise of, the Warrant (and/or any successor
Warrant(s) hereto).

 

SECTION 5.13 Other
Transactions. Nothing contained herein shall preclude the Holder from engaging in any transaction, in addition to those contemplated
by this Warrant with the Company or any of its Affiliates in which the Company or such Affiliate is not restricted hereby from
engaging with any other Person.

 

SECTION 5.14 Waiver
of Jury Trial. THE HOLDER AND THE COMPANY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS WARRANT, OR
ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF THE HOLDER OR THE COMPANY. THE COMPANY
ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION AND THAT THIS PROVISION IS A
MATERIAL INDUCEMENT FOR THE HOLDER ENTERING INTO THIS WARRANT.

 

SECTION 5.15 Headings.
Section titles and captions contained in this Warrant are inserted only as a matter of convenience and for reference. The titles
and captions in no way define, limit, extend or describe the scope of this Warrant or the intent of any provision hereof.

 

SECTION 5.16 No Third-Party
Beneficiaries. This Warrant is for the sole benefit of the Company and the Holder and their respective successors and, in the
case of the Holder, permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person
any legal or equitable right, benefit or remedy of any nature whatsoever, under or by reason of this Warrant.

 

 

[Remainder of page intentionally left blank;
signatures on following page]

 

 

 

 

    	 	12	 

     

    

 

IN WITNESS WHEREOF, the
undersigned has caused this Warrant to be duly executed and delivered by an authorized officer, all as of the date and year first
above written.

 

	 	TWINLAB CONSOLIDATED HOLDINGS, INC.,
	 	a Nevada corporation	 
	 	 	 
	 	 	 	 
	 	By: 	/s/ Thomas
    A. Tolworthy	 
	 	Name: 	Thomas A. Tolworthy	 
	 	Title: 	Chief Executive Officer and President	 

 

 

 

 

[SIGNATURE
PAGE TO WARRANT]

 

 

    	 	13	 

     

    

 

ACKNOWLEDGED
AND AGREED:

 

PENTA
MEZZANINE SBIC FUND I, L.P.,

a
Delaware limited partnership

 

	By:	Penta Mezzanine SBIC Fund I GP, LLC,
	its 	General Partner	 
	 	 	 	 
	 	 	 	 
	 	By: 	/s/ Seth
    D. Ellis	 
	 	Name:	Seth D. Ellis	 
	 	Title:	Manager	 

 

 

 

 

[SIGNATURE PAGE TO WARRANT]

 

 

    	 	14	 

     

    

 

ANNEX 1

 

  

ELECTION TO EXERCISE FORM

 

(To Be Executed By the Holder of This Warrant

 

In Order to Exercise This Warrant)

 

The undersigned hereby
irrevocably elects to exercise the right covered by this Warrant to purchase ____________________ of the Equity Interest of TWINLAB
CONSOLIDATED HOLDINGS, INC., a Nevada corporation, according to the conditions hereof
and herewith makes payment in full of the Exercise Price with respect to such Equity Interest.

  

 

	 	 	 
	 	Signature	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Address	 
	 	 	 
	Dated:	 	 	 	 

  

    	 	15	 

     

    

 

ANNEX 2

 

 

ASSIGNMENT FORM

 

(To Be Executed By the Holder of This Warrant

 

In Order to Assign This Warrant)

 

FOR VALUE RECEIVED,
the undersigned hereby sells, assigns and transfers unto _____________________________ this Warrant and all rights evidenced thereby
and does irrevocably constitute and appoint ___________________, attorney, to transfer the said Warrant on the books of TWINLAB
CONSOLIDATED HOLDINGS, INC., a Nevada corporation.

 

 

	 	 	 
	 	Signature	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Address	 
	 	 	 
	Dated:	 	 	 	 

 

 

    	 	16	 

     

    

 

ANNEX 3

 

 

EXCHANGE FORM

 

(To Be Executed By the Holder of This Warrant

 

In Order to Exchange and Assign This Warrant)

 

The undersigned hereby
irrevocably elects to exchange this Warrant to purchase ________________, of the Equity Interest of
TWINLAB CONSOLIDATED HOLDINGS, INC., a Nevada corporation, for ___________
Warrants to purchase the Equity Interest of TWINLAB CONSOLIDATED HOLDINGS, INC., a
Nevada corporation, set forth below to the Persons named and hereby sells, assigns and transfers unto such Persons that portion
of this Warrant represented by such new Warrants and all rights evidenced thereby and does irrevocably constitute and appoint ____________________,
attorney, to exchange and transfer this Warrant as aforesaid on the books of TWINLAB CONSOLIDATED HOLDINGS, INC.,
a Nevada corporation.

 

	Equity Interest		Assignee	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	Signature	 
	 	 	 	 
	 	 	 
	 	 	 
	 	Address	 

 

FOR USE BY THE COMPANY ONLY:

 

This Warrant No. __ cancelled (or transferred
or exchanged) this ________ day of _____________, ____________ of the Equity Interest of
TWINLAB CONSOLIDATED HOLDINGS, INC., a Nevada corporation, issued therefor
in the name of ____ ___________ Warrant No. ___ for ________, of the Equity Interest of
TWINLAB CONSOLIDATED HOLDINGS, INC., a Nevada corporation, in the name of
_________________________.

 

 

	Dated:	 	 

 

 

    	 	17

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