Document:

ex_148202.htm

 EXHIBIT 10.17

 

 

CREDIT FACILITY RENEWAL AGREEMENT

 

 

THIS CREDIT FACILITY RENEWAL AGREEMENT is executed as of April 26, 2018, by NEWBEVCO, INC., a Delaware corporation (the “Borrower”), and the remaining entities signing below (collectively, the “Guarantors”) in favor of FIFTH THIRD BANK, an Ohio banking corporation (the “Bank”).

 

WITNESSETH:

 

WHEREAS, the Borrower obtained a credit facility (the “Loan”) from the Bank in the original principal amount of Twenty Five Million and 00/100 Dollars ($25,000,000.00) pursuant to that certain Credit Agreement between the Borrower and the Bank dated as of June 18, 2015 (the “Credit Agreement”); and

 

WHEREAS, the credit facility was subject to the guaranty of each of the Guarantors pursuant to that certain Continuing and Unconditional Guaranty from the Guarantors in favor of the Bank dated as of June 18, 2015 (the “Guaranty”); and

 

WHEREAS, to induce the Bank to renew the Loan, the Borrower and the Guarantors agree to reaffirm all of their respective obligations to the Bank pursuant to the Credit Agreement, the Guaranty and all other documents they executed in connection with the Loan and the renewal (collectively, the “Loan Documents”).

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Borrower and the Guarantors agree as follows:

 

1.     The definition of “Termination Date” in the Credit Agreement is amended to June 18, 2021.

 

2.     Except as set forth herein, all terms and conditions set forth in the Loan Documents shall continue to apply to the Loan, as renewed, and shall be for the benefit of the Bank. More specifically and without limiting the effect of the foregoing, the Borrower and the Guarantors acknowledge and agree that their respective representations, warranties, covenants and obligations contained within the Loan Documents shall remain representations, warranties, covenants and obligations of them and shall be deemed to be made as of the date of this Agreement, in addition to the dates on which they were previously made to the Bank.

 

3.     The Borrower and the Guarantors hereby release and discharge the Bank and its successors, assigns, officers, managers, directors, shareholders, employees and agents (collectively, the “Bank Parties”) and do hereby jointly and severally indemnify and hold harmless the Bank Parties from any and all claims, counterclaims, demands, damages, debts, agreements, covenants, suits, contracts, obligations, liabilities, accounts, offsets, rights, actions and causes of action of any nature whatsoever, including, without limitation, all claims, demands, and causes of action for contribution and indemnity, whether arising at law or in equity (including, without limitation, claims of fraud, duress, mistake, tortious interference or usury), whether presently possessed or possessed in the future, whether known or unknown, whether liability be direct or indirect, liquidated or unliquidated, whether presently accrued or to accrue hereafter, whether or not heretofore asserted, for or because of or as a result of any act, omission, communication, transaction, occurrence, representation, promise, damage, breach of contract, fraud, violation of any statute or law, commission of any tort, or any other matter whatsoever or thing done, omitted or suffered to be done by the Bank Parties which have occurred in whole or in part, or were initiated at any time up to and through the execution of this Reaffirmation of Obligations. In addition, the Borrower and the Guarantors hereby acknowledge, confirm and warrant to the Bank that, as of the date hereof, none of the Borrower or any of the Guarantors has any defense, right of set-off, claim or counterclaim against the Bank under, arising out of, or in any manner connected with the Loan, the Loan Documents, any collateral pledged to the Bank in connection with the Loan, or against any of the indebtedness evidenced or secured thereby or under any other documents executed in connection therewith or relating thereto, any and all of which the Borrower and the Guarantors hereby expressly waive.

 

 

 

 

4.     The Borrower shall pay the legal fees and costs of Frank, Weinberg & Black, P.L., the Bank’s counsel, in connection with the renewal of the Loan. The Borrower and the Guarantors acknowledge that the legal services performed by Frank, Weinberg & Black, P.L. in connection with the renewal of the Loan are being performed on behalf of the Bank and not the Borrower or any of the Guarantors. Such services are being paid for by the Borrower as part of the loan renewal costs as reflected on the Closing Statement.

 

5.     THE BORROWER AND THE GUARANTORS HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THE REAFFIRMATION OF OBLIGATIONS, THE LOAN DOCUMENTS OR ANY OTHER AGREEMENT OR DOCUMENT EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY. THE BORROWER AND THE GUARANTORS ACKNOWLEDGE THAT THIS WAIVER CONSTITUTES A MATERIAL INDUCEMENT TO THE BANK TO GRANT PERMISSION FOR THE RENEWAL.

 

The undersigned have caused this Reaffirmation of Obligations to be duly executed and delivered on the day and year first above written.

 

Newbevco, Inc., a Delaware corporation

Bevco Sales, Inc., a Delaware corporation

Big Shot Beverages, Inc., a Delaware corporation

Everfresh Beverages, Inc., a Delaware corporation

Faygo Beverages, Inc., a Michigan corporation

Faygo Sales Company, a Texas corporation

National Beverage Vending Company, a Delaware corporation

National Productions, Inc., a Delaware corporation

National Retail Brands, Inc., a Delaware corporation

Paco, Inc., a Delaware corporation

Shasta Beverages, Inc., a Delaware corporation

Shasta Beverages International, Inc., a Delaware corporation

Shasta Midwest, Inc., a Delaware corporation

Shasta Sales, Inc., a Delaware corporation

Shasta SW Inc., a Delaware corporation

Shasta Sweetener Corp., a Delaware corporation

Shasta West, Inc., a Delaware corporation

 

 

	By:	 	 
	 	George Bracken, Vice President	 

 

2Exhibit 4.1

 

THIRD
AMENDMENT AGREEMENT TO SECURED CONVERTIBLE NOTE

DUE
NOVEMBER 17, 2019

 

This
Third Amendment Agreement (this “Third Amendment”) to the Secured Convertible Note due November 17, 2019
(the “Note”), is made and entered into as of June 27, 2019, among XpresSpa Group, Inc., a Delaware
corporation (the “Company”), and the Holders (as identified on the signature pages hereto), constituting a
Majority in Interest (the “Specified Holders”). Capitalized terms used herein but not defined shall have
the meaning ascribed to such terms in the Note.

 

RECITALS:

 

WHEREAS, the
Company, the Specified Holders and certain other parties thereto entered into a Securities Purchase Agreement dated as of May 15,
2018 (the “SPA”) pursuant to which the Specified Holders were issued Notes as set forth on the signature pages
hereto;

 

WHEREAS, pursuant
to Section 4(b) of the Note, the conversion price for the principal and interest, if any, in connection with voluntary conversions
by the Holder is $12.40 per share of Common Stock (after giving effect to the Company’s 1-for-20 reverse stock split that
was effective on February 22, 2019), subject to adjustment herein (the “Conversion Price”); and

 

WHEREAS, the
Company and the Specified Holders desire to amend certain terms of the Note to reduce the Conversion Price in consideration of
the Specified Holders agreeing to voluntarily convert their Notes pursuant to Section 4(a) of the Notes.

 

NOW, THEREFORE,
in consideration of the premises and covenants contained herein, the parties agree as follows:

 

1.                  
Section 4(b) of the Note is hereby amended and restated in its entirety as follows:

 

“Conversion Price.
The conversion price for the principal and interest, if any, in connection with voluntary conversions by the Holder shall be $2.48 per
share of Common Stock, subject to adjustment herein (the “Conversion Price”).”

 

2.                  
As consideration for the reduction in the Conversion Price, each Specified Holder hereby agrees to voluntarily convert the full
amount of principal outstanding on its Notes pursuant to Section 4(a) of the Note, including all interest accrued thereon, into
shares of Common Stock no later than June 28, 2019 at the Conversion Price as amended pursuant to this Third Amendment. If, as of 4PM on June 28, 2019, any Holder would otherwise beneficially own (as determined under Section 13(d) of the 1934
Act) in excess of 4.99% of the number of shares of Common Stock outstanding immediately after giving effect to the conversion
of such Holder's then unconverted outstanding principal and interest, the Note shall convert automatically into warrants to
purchase a number of shares of Common Stock equal to such Holder's then outstanding principal amount plus accrued interest
divided by $2.48. Such warrants will have an exercise price of $0.01 and otherwise be identical in form and substance to the
Company's existing Class A Warrant issued on May 18, 2018.

 

3.                  
For the avoidance of doubt, the Specified Holders hereby waive the Events of Default have occurred under the SPA and Note as a
result of the Company’s failure to comply with Section 8(a)(i) of the Note with respect to the periods ending April 30, 2019
and May 31, 2019 (together with any other default or Event of Default directly relating thereto as of the date hereof, the “Existing
Defaults”) and any interest under the Note payable at a default rate pursuant to Section 8(b) thereof, including any such
default rate interest accrued in respect of the Existing Defaults from each date of an Existing Default through the date hereof.

 

4.                  
The Company represents that the holding period of the Notes and Conversion Shares as determined under Rule 144 is not affected
by the terms of this Third Amendment and tack back to the original issue date of the Note.

 

5.                  
The Company and the Specified Holders hereby acknowledge and agree that the additional shares of Common Stock issuable pursuant
to, and as a result of, the terms of this Third Amendment shall be deemed to be an “Exempt Issuance” pursuant to the
definition of “Exempt Issuance” as defined in the SPA.

 

    	 	 	 

     

    

 

6.                  
Except as explicitly modified herein, the Transaction Documents (as defined in the SPA) shall remain in full force and effect.

 

7.                  
This Third Amendment shall be governed in accordance with terms of the Note.

 

8.                  
This Third Amendment may be executed in two or more counterparts, all of which when taken together shall be considered one and
the same agreement and shall become effective when counterparts have been signed by the Company and the Holder, it being understood
that the parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or
by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the
party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf”
signature page were an original thereof.

 

[REST OF THIS PAGE LEFT INTENTIONALLY
BLANK]

    	 	2	 

     

    

 

IN WITNESS WHEREOF,
the Company and the Holder have executed this Third Amendment Agreement as of the date first above written.

 

COMPANY

 

XpresSpa Group, Inc.

 

 

	 	 	 

By:

Its:

 

[Holder signature page follows]

 

    	 	3	 

     

    

 

IN WITNESS WHEREOF,
the Company and the Holder have executed this Third Amendment Agreement as of the date first above written.

 

 

Alpha Capital Anstalt

[Print
Name of Holder]    

 

	 	 
	[Signature]	 
	 	 
	Name:	 
	Title:	 

    	 	4	 

     

    

 

Anson Investments Master Fund LP
 [Print Name of Holder]  

 

	 	 
	[Signature]	 
	 	 
	Name:	 
	Title:	 

 

    	 	5	 

     

    

 

Brio Capital Master Fund Ltd.
 [Print Name of Holder]  

 

	 	 
	[Signature]	 
	 	 
	Name:	 
	Title:	 

 

 

    	 	6	 

     

    

 

The Hewlett Fund LP
 [Print Name of Holder]  

 

	 	 
	[Signature]	 
	 	 
	Name:	 
	Title:	 

 

    	 	7	 

     

    

 

Intracoastal Capital, LLC
 [Print Name of Holder]  

 

	 	 
	[Signature]	 
	 	 
	Name:	 
	Title:	 

 

    	 	8	 

     

    

 

L1 Capital Global Opportunities Master Fund
 [Print Name of Holder]  

 

	 	 
	[Signature]	 
	 	 
	Name:	 
	Title:	 

 

    	 	9	 

     

    

 

Palladium Capital Advisors, LLC
 [Print Name of Holder]  

 

	 	 
	[Signature]	 
	 	 
	Name:	 
	Title:	 

 

 

    	 	10

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