Document:

Exhibit 10.3

 

 

November
17, 2016

 

Mr.
Jeffrey Barocas

Ocean
Bio-Chem, Inc.

4041 S.W. 47 Ave.

Ft. Lauderdale, FL 33314

 

Dear
Jeff:

 

The
purpose of this letter is to document an agreement between Ocean Bio-Chem, Inc. and Regions Bank regarding specific terms and
conditions relating to the renewal of a $4,000,000 line of credit. These terms presented below will supersede any conflicting
language in the Business Loan Agreement (BLA), the Promissory Note (Note) and Commercial Security Agreement (Security Agreement),
each dated November 17th, 2016. Capitalized terms not defined in this letter will have the meanings ascribed to them in the BLA,
the Note or the Security Agreement, as applicable.

 

PROMISSORY
NOTE

 

	●	Variable
                                         Interest Rate. Regions agrees that the interest on the unpaid principal balance of
                                         this Note will be calculated as described in the “INTEREST CALCULATION METHOD”
                                         paragraph using a rate of 1.50 percentage points over the Index.
	 	 
	●	Change
                                         in Ownership — Regions agrees that a change in ownership of 25% or more will
                                         not constitute an event of default. Instead, a default will be triggered in the event
                                         that the majority shareholder’s ownership drops below 50% of all outstanding shares.
                                         (This modification also applies to the BLA and Security Agreement.)
	 	 
	●	Loan
                                         Fee. — Paragraph deleted- There will be no loan fees charged to Borrower. 

 

Business
Loan Agreement (BLA) 

 

	●	Hazardous
                                         Substances. Regions agrees that clauses (1), (2) and (3) of the provision Hazardous
                                         Substances shall read as follows: Except as disclosed to and acknowledged by Lender
                                         in writing, Borrower represents and warrants that: (1) During the period of Borrower’s
                                         ownership of the Collateral, there has been no use, generation, manufacture, storage,
                                         treatment, disposal, release or threatened release of any Hazardous Substance by any
                                         person on, under, about or from any of the Collateral except in material compliance
                                         with Environmental Laws. (2) Borrower has no knowledge of, or reason to believe that
                                         there has been (a) any breach or violation of any Environmental Laws; (b) any use, generation,
                                         manufacture, storage, treatment, disposal, release or threatened release of any Hazardous
                                         Substance on, under, about or from the Collateral by any prior owners or occupants of
                                         any of the Collateral except in material compliance with Environmental Laws; or
                                         (c) any actual or threatened litigation or claims of any kind by any person relating
                                         to such matters. (3) Neither Borrower nor any tenant, contactor, agent or other authorized
                                         user of any of the Collateral shall use, generate, manufacture, store, treat, dispose
                                         of or release any Hazardous Substance on, under, about or from any of the Collateral
                                         except in material compliance with Environmental Laws; and any such activity shall
                                         be conducted in material compliance with all applicable federal, state, and local
                                         laws, regulations, and ordinances, including without limitation all Environmental Laws.

 

     

     

    

 

	●	Debt
                                         to Capitalization. Regions agrees that the provision Debt to Capitalization shall
                                         read as follows: Not permit its ratio of funded debt divided by the sum of Net Worth
                                         and funded debt to be greater than 0.75 times to be tested quarterly.
	 	 
	●	Environmental
                                         Compliance and Reports. Regions agrees that the provision Environmental Compliance
                                         and Reports shall read as follows: Borrower shall comply in all material respects
                                         with any and all Environmental Laws; not cause or permit to exist, as a result of an
                                         intentional or unintentional action or omission on Borrower’s part or on the part of
                                         any third party, on property owned and/or occupied by Borrower, any environmental activity
                                         where damage may result to the environment, unless such environmental activity is pursuant
                                         to an in material compliance with the conditions of a permit issued by the appropriate
                                         federal, state or local governmental authorities or otherwise in material compliance
                                         with Environmental Laws; shall furnish to Lender promptly and in any event within
                                         thirty (30) days after receipt thereof a copy of any notice, summons, lien, citation,
                                         directive, letter or other communication from any governmental agency or instrumentality
                                         concerning any intentional or unintentional action or omission on Borrower’s part in
                                         connection with any environmental activity whether or not there is damage to the environment
                                         and/or other natural resources.
	 	 
	●	Indebtedness
                                         and Liens. Regions agrees that the provision Indebtedness and Liens shall
                                         read as follows: (1) Except for trade debt incurred in the normal course of business,
                                         indebtedness otherwise disclosed to Lender and indebtedness to Lender contemplated
                                         by this Agreement, create, incur or assume indebtedness for borrowed money, including
                                         capital leases, (2) sell, transfer or lease any of Borrower’s assets (except for inventory
                                         sold or accounts collected in the ordinary course of business, or as otherwise provided
                                         for in this Agreement), (3) mortgage, assign, pledge, grant a security interest in,
                                         or encumber any of Borrower’s assets (except as allowed as Permitted Liens), or (3) sell
                                         with recourse any of Borrower’s accounts, except to Lender.
	 	 
	●	Continuity
                                         of Operations. Regions agrees that the provision Continuity of Operations shall
                                         read as follows: (1) Engage in any business activities substantially different than those
                                         in which Borrower is presently engaged, (2) cease operations, liquidate, merge, transfer,
                                         acquire or consolidate with any other entity, change its name, dissolve or transfer or
                                         sell Collateral out of the ordinary course of business, or (3) pay any dividends on Borrower’s
                                         stock (other than dividends payable in its stock) or purchase or retire any of Borrower’s
                                         outstanding shares or alter or amend Borrower’s capital structure, provided, however
                                         that notwithstanding the foregoing, but only so long as no Event of Default has occurred
                                         and is continuing or would result from the payment of dividends, (a) if Borrower
                                         is a “Subchapter S corporation” (as defined in the Internal Revenue Code of
                                         1986, as amended), Borrower may pay cash dividends on its stock to its shareholders from
                                         time to time in amounts necessary to enable the shareholders to pay income taxes and
                                         make estimated income tax payments to satisfy their liabilities under federal and state
                                         law which arise solely from their status as Shareholders of a Subchapter S Corporation
                                         because of their ownership of shares of Borrower’s stock, and (b) Borrower may pay
                                         dividends so long as, on a pro forma basis after giving effect to such proposed dividend,
                                         Borrower is in compliance with the Debt to Capitalization ratio required hereunder.

 

    	 	2	 

     

    

 

	●	EBITDAR.
                                         Regions agrees that such definition is deleted and the Borrower shall comply with
                                         the definition of such term in Debt Service Coverage Ratio.
	 	 
	●	Subsidiaries
                                         and Affiliates of Borrower. Regions agrees that the provision of Subsidiaries
                                         and Affiliates of Borrower shall be renamed “Subsidiaries of Borrower”
                                         and the phrase “and affiliates” and the phrase “or affiliates”
                                         deleted therefrom.
	 	 
	●	Eligible
                                         Inventory. Clause (2) in the BLA should read, “Inventory which Lender deems
                                         to be obsolete, unsalable, damaged, defective, or unfit for further processing.”
	 	 
	●	Eligible
                                         Accounts. Clause (2) in the BLA should read, “Accounts with respect to which
                                         the Account Debtor is a subsidiary of, or affiliated with, Borrower or its officers or
                                         directors. Clause (10) in the BLA should read, “Accounts which have not been paid
                                         within 120 days from the invoice date, or more than 90 days past the due date. Accounts
                                         from Auto Zone and Walmart are permissible up to 180 days past invoice date.”

 

		●	Clause
                                         (11) in the BLA should read: “Accounts of West Marine, to the extent they exceed
                                         forty percent (40%) of the total Eligible Accounts of Borrower at such time.”
	 	 	 
		●	Permitted
                                         Liens — as used in the BLA and CSA, “Permitted Liens” means (1) liens
                                         and security interests securing Indebtedness owed by Borrower to Lender; (2) liens for
                                         taxes, assessments, or similar charges either not yet due or being contested in good
                                         faith; (3) liens of materialmen, mechanics, warehousemen, or carriers, or other like
                                         liens arising in the ordinary course of business and securing obligations which are not
                                         yet delinquent; (4) purchase money liens or purchase money security interests upon or
                                         in any property acquired or held by Borrower in the ordinary course of business to secure
                                         indebtedness outstanding on the date of this Agreement or permitted to be incurred under
                                         the paragraph of the BLA titled “Indebtedness and Liens”; (5) liens and security
                                         interests which, as of the date of this Agreement, have been disclosed to and approved
                                         by the Lender in writing; and (6) those liens and security interests which in the aggregate
                                         constitute an immaterial and insignificant monetary amount with respect to the net value
                                         of Borrower’s assets.”

 

    	 	3	 

     

    

 

SECURITY
AGREEMENT

 

	●	Enforceability
                                         of Collateral. Regions agrees that second sentence of the provision Enforceability
                                         of Collateral shall read as follows: There shall be no setoffs or counterclaims against
                                         any of the Collateral, and no agreement shall have been made under which any deductions
                                         or discounts many be claimed concerning the Collateral except those deductions or
                                         discounts in the ordinary course of business and those disclosed to Lender in writing.
	 	 
	●	Transactions
                                         Involving Collateral. Regions agrees that the first sentence of the provision Transactions
                                         Involving Collateral shall read as follows: Except for inventory sold or accounts
                                         collected in the ordinary course of Grantor’s business, or as otherwise provided for
                                         in this Agreement, Grantor shall not sell, offer to sell, or otherwise transfer of dispose
                                         of the Collateral. Grantor shall not pledge, mortgage, encumber or otherwise permit the
                                         Collateral to be subject to any lien, security interest, encumbrance, or charge, other
                                         than the security interest provided for in this Agreement and Permitted Liens,
                                         without the prior written consent of Lender.
	 	 
	●	Title.
                                         Regions agrees that the first sentence of the provision Title shall read as•follows:
                                         Grantor represents and warrants to Lender that Grantor holds good and marketable title
                                         to the Collateral, free and clear of all liens and encumbrances except for the lien of
                                         this Agreement and Permitted Liens.
	 	 
	●	Hazardous
                                         Substances. Regions agrees that the first sentence of the provision Hazardous
                                         Substances shall read as follows: Grantor represents and warrants that the collateral
                                         never has been, and never will be so long as this Agreement remains a lien on the Collateral,
                                         used in violation of any Environmental Laws or for the generation, manufacture, storage,
                                         transportation, treatment, disposal, release or threatened release of any Hazardous Substance
                                         except in material compliance with Environmental Laws.

 

Sincerely,

 

/s/ Michael
Jenkins

Michael
Jenkins

Vice
President

Regions
Bank

 

4Exhibit 10.13

 

THIS
CONSULTING AGREEMENT shall be effective as of the 1st day of April 2016

 

BETWEEN:

 

WESTERN
URANIUM CORPORATION, a corporation

incorporated
under the laws of Ontario, having offices

at
Suite 700, 10 King Street East, Toronto,

Ontario
M5C 1C3 (hereinafter called “Western”)

 

OF
THE FIRST PART

-and-

 

Baobab
Asset Management LLC, 3 Greenwich Office Park,

Suite 102, Greenwich, CT 06831 (hereinafter called the ‘Consultant’)

 

OF
THE SECOND PART

 

WHEREAS
Western wishes to employ the consulting services of Baobab Asset Management LLC to acquire the services of Russell Fryer;

 

AND
WHEREAS Russell Fryer through Baobab Asset Management LLC is prepared to provide the Services set out in Exhibit “A”
attached hereto.

 

NOW
THEREFORE in consideration of the mutual covenants and agreements hereinafter contained, the parties hereto agree as follows:

 

		1.	Management
                                         Services. The Consultant shall perform the services as detailed in Exhibit “A”
                                         – Scope of Services (“Services”) which exhibit shall be deemed a part
                                         hereof. Each change in the Services must be authorized in advance in writing by Western
                                         and confirmed by resolution of the Board of Directors of Western.
	 	 	 
		2.	Term
                                         of Agreement. The term of this agreement shall commence on April 1 2016 and end September
                                         30, 2016.
	 	 	 
		3.	Compensation.
                                         As full consideration for performance of the Services Western will pay the Consultant
                                         according to Exhibit “B” – “Compensation for Services”
                                         which shall be deemed a part hereof.
	 	 	 
		4.	Invoicing
and Payment. The total compensation will be paid in monthly payments, in arrears, or otherwise, as agreed in writing between
Western in accordance with Exhibit “B”.

 

     

     

    

 

		5.	Compliance
                                         with Law and Corporate Policy. In the performance of the Services hereunder, the
                                         Consultant shall comply with and observe all applicable laws, regulations and orders
                                         of any proper authority having jurisdiction over the Services together with all corporate
                                         policies of Western in effect from time-to-time. This Agreement shall be governed by
                                         and construed in accordance with the laws of the Province of Ontario and of Canada applicable
                                         therein.
	 	 	 
		6.	Performance
                                         of Duties. The Consultant agrees to perform his duties as a consultant efficiently,
                                         professionally and effectively and during the term of this agreement the Employee shall
                                         devote substantially his full business time to the business affairs of Western.
	 	 	 
		7.	Termination.
                                         It is agreed that each of Western and the Consultant shall have the right to terminate
                                         this Agreement at any time by giving the other party thirty (30) days written Notice
                                         of Termination. If Western gives Notice of Termination to the Consultant, it will be
                                         at the address provided for herein. If the Consultant gives Notice of Termination to
                                         Western, it will be at the address provided for herein.
	 	 	 
		8.	Notices.
                                         Any notice required or permitted to be given hereunder shall be in writing and shall
                                         be sufficiently given if hand delivered or, if mailed by prepaid registered mail, addressed
                                         to the other party at the following addresses, or to such other addresses as the parties
                                         may advise each other from time to time in writing.
	 	 	 
		9.	If
                                         to Western:

 

WESTERN
URANIUM CORPORATION 

10
King Street East, Suite 700

Toronto,
Ontario M5C 1C3 Attn: President

Email:
gglasier@western-uranium.com

 

If
to the Consultant:

BAOBAB
ASSET MANAGEMENT LLC

3
Greenwich Office Park, Suite 102

Greenwich,
CT 06831 Attn: Russell Fryer

Email:
rfryer@baobabllc.com

 

Any
notice shall be deemed to have been received by the parties (a) if hand delivered on the date of delivery, (b) if by email to
the above designated email addresses on the date sent or (c) if mailed on the fourth business day following the date of mailing.

 

11.
Entire Agreement. This Agreement (together with the Exhibits attached hereto) represents the entire understanding and agreement
concerning the Services. Each of the parties shall from time to time and, at all times, do all further acts and execute and deliver
all such further documents and assurances, as may be reasonably required, in order to fully perform and carry out the terms of
this Agreement.

 

    	 	2	 

     

    

 

IN
WITNESS WHEREOF the parties hereto have entered into this Agreement effective as of the date first above written.

 

	WESTERN
    URANIUM CORPORATION	 	BAOBAB
    ASSET MANAGEMENT LLC
	 	 	 
	/s/
    George Glasier	 	/s/
    Russell Fryer
	By:	George Glasier	 	By:	Russell Fryer
	Title:	President and Chief Executive Officer	 	Title:	Chief Executive Officer

 

    	 	3	 

     

    

 

Exhibit
“A” – Services

 

Exhibit
“B” – Compensation

 

    	 		 

     

    

 

EXHIBIT
“A”

 

SERVICES

 

The
Consultant will provide the following Services to Western:

 

As
a member of the Board of Directors of Western, Russell Fryer through Baobab Asset Management LLC will provide the following services
(the ‘Services’):

 

		●	Work
                                         directly with the executive management of global uranium, vanadium, steel, and nuclear
                                         utilities for the benefit of the Company.
	 	 	 
		●	Introduce
                                         the Company to the Department of Energy and Environmental Protection Agency leadership
                                         in order to advance Company objectives.
	 	 	 
		●	Create
                                         market awareness of the benefits of nuclear energy as a carbon-free, green energy source
                                         of electricity.
	 	 	 
		●	Interface
                                         with global utility companies in order to secure uranium supply contracts.
	 	 	 
		●	Manage
                                         the marketing, media, and investor relations activities of the Company.
	 	 	 
		●	Interact
                                         with global investment bankers to optimize Company balance sheet.
	 	 	 
		●	Meet
                                         and present with institutional and retail investors where required.
	 	 	 
		●	Present
                                         the Company at investor conferences.

 

     

     

    

 

EXHIBIT
“B”

 

COMPENSATION

 

Western
shall pay the following amounts to Baobab Asset Management LLC

 

Compensation
of USD $30,000 shall be paid for April 2016 and compensation of USD $15,000 shall be paid for each month thereafter, all payable
on the 1st day of each month in arrears (or as may otherwise be agreed in writing by the parties). Western agrees to reimburse
Baobab for all reasonable expenses including travel and accommodations associated with activities and responsibilities detailed
in Exhibit “A”.

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