Document:

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT
AGREEMENT (“Agreement”) made and entered into on this 1st day of April 2013 (the "Effective Date"),
by and between Vystar Corporation, a Georgia corporation (the "Company"), and W. Dean Waters, a resident of the State
of Georgia ("Employee").

 

In consideration of
the employment by the Company and of the compensation and other remuneration paid, and to be paid, by the Company and received
by Employee for such employment, and for other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged by Employee, it is agreed by and between the parties hereto as follows:

 

			1.            Definitions. For purposes
of this Agreement, the following terms shall have the meanings specified below:

 

"Business"
– (i) the research, development, manufacturing, marketing, sales, distribution and offering of products and services related
to low-protein natural rubber latex raw materials and products offered by the Company as of the Effective Date and as may be offered
by Company during the term of this Agreement, and (ii) the providing of sleep-health services to patients.

 

“Competitor”
– means any Person (as defined herein) (i) offering products or services in competition with Company or any of its subsidiaries,
specifically any Person offering or involved in the research, development, manufacturing, marketing, selling and/or distribution
of any low-protein natural rubber latex raw material or product, or (ii) providing of sleep-health services to patients.

 

			"Confidential Information" - information relating to the operations, customers,
or finances of the Company, or the Business, that derives value from not being generally known to other Persons, including, but
not limited to, technical or nontechnical data, formulas, patterns, compilations, programs, devices, methods, techniques, drawings,
processes, financial data, and lists of or identifying information about actual or potential customers or suppliers, including
all customer or patient lists, whether or not reduced to writing, certain patented and unpatented information relating to the research
and development, manufacture or serving of the Company's products, information concerning proposed new products, market feasibility
studies and proposed or existing marketing techniques or plans, and all information defined as a “Trade Secret” pursuant
to the Georgia Trade Secrets Act or otherwise by Georgia law. Confidential Information also includes the same types of information
relating to the operations, customers, finances, or Business of any affiliate of the Company, if such information is learned by
Employee during the term of this Agreement or in connection with Employee's performance of Services. Confidential Information also
includes information disclosed to the Company by third parties that the Company is obligated to maintain as confidential. Confidential
Information may include information that is not a Trade Secret, but Confidential Information that is not also a Trade Secret shall
constitute Confidential Information only for five (5) years after the Termination Date. Confidential Information does not include
information generally available to the public through no violation of a confidentiality or non-disclosure obligation owed to Company;

 

	 	 	 
	Waters Employment Contract

 

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			"Customer" - any customer or patient of the Company in the Territory that
Employee, during the term of this Agreement, (i) provided goods or services to or solicited on behalf of the Company; or (ii) about
whom Employee possesses Confidential Information;

 

			"Person" - any individual, corporation, partnership, limited liability
company, association, municipality, government agency, government, unincorporated organization or other entity;

 

			"Services" - the duties and functions that Employee shall provide in the
Territory as an employee of the Company and as further outlined on Exhibit B;

 

			"Termination Date" - the last day Employee is employed by the Company,
whether the termination is voluntary or involuntary and whether with or without cause;

			

 

“Territory”
– shall be the geographic region in which Employee initially and/or at anytime throughout the term of this Agreement provides
the Services. Territory shall be more fully described in Exhibit B along with Employee’s description of Services.

 

2.            Employment:
The Company agrees to employ Employee and Employee agrees that Employee will devote Employee’s full productive time, skill,
energy, knowledge and best efforts during the period of Employee’s employment to such duties as the Board of Directors of
the Company and/or the Employee’s Direct Supervisor (as identified in Section 5 below) may reasonably assign to Employee,
and Employee will faithfully and diligently endeavor to the best of Employee’s ability to further the best interest of the
Company during the period of Employee’s employment. However, Employee is not prohibited from making personal investments
in any other businesses, as long as those investments do not require Employee to participate in the operation of the companies
in which Employee invests and such other businesses are not in competition with the Company or any of its subsidiaries (“Competitor”).
Employee may invest in any publicly traded company registered on a bona fide stock exchange without reservation.

 

3.            Terms
of Employment: Employee's employment will begin on the 1st day of April 2013 and will continue unless one party gives the
other party thirty (30) days written notice of such party’s intent to terminate the Agreement thirty (30) days prior to each
annual anniversary date, unless earlier terminated in accordance with Section 9 herein. In the event of Company’s termination
of Employee for cause, Employee shall be obligated to comply with the Noncompete covenants.

 

4.            Compensation:
On the terms and subject to the conditions of this Agreement, (i) the Company will pay Employee a salary and a bonus determined
in accordance with Exhibit A, (ii) Employee will be entitled to participate in the Company’s Employee Stock Option Plan as
may be in effect from time to time, and (iii) the Company will provide Employee with employee benefits consistent with those provided
by the Company to similarly situated executives. The Company’s Employee Stock Option Plan will be distributed to Employee.
The employee benefits provided by the Company as of the date hereof shall also be distributed to Employee. The Company reserves
the sole and unilateral right to modify any and all employee benefits at any time in its sole discretion.

 

	 	 	 
	Waters Employment Contract

 

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5.            Title,
Duties and Conduct of Employee: The Employee’s initial title shall be Chief Financial Officer, and shall report to
William R. Doyle, President & CEO, as Employee’s Direct Supervisor. Employee shall perform such duties and functions
for the Company as shall be specified from time to time by the Chairman or Board of Directors of the Company, and/or the Employee’s
Direct Supervisor, including, but not limited to the duties and functions expressly set forth on Exhibit B, and which are consistent
with Employee's duties set forth on Exhibit B (“Services”).

 

			

			a.            Disparagement. Employee
shall not at any time make false, misleading or disparaging statements about the Company, including the Business, management, employees
and/or Customers.

 

			b.            Prior Agreements. Employee
represents and warrants that Employee is not under any obligation, contractual or otherwise, limiting, impairing or affecting Employee's
performance of Services. Upon execution of this Agreement, Employee shall give the Company any agreement with a prior employer
or other Person purporting to limit or affect, in any way, Employee's ability to work for the Company, to solicit customers or
potential customers or employees or to use any type of information.

 

			c.            Confidential Information.
Employee shall protect Confidential Information. Except as required in connection with work for the Company, Employee will not
use, disclose or give to others, during or after Employee's employment, any Confidential Information.

 

			d.            Compliance with Company
Policies and Laws. At all times while performing Services, Employee shall comply with all laws and regulations applicable to
Employee and/or Company. Employee shall at all times comply with all Company policies and procedures. Failure to comply with this
Section shall be grounds for Termination For Cause, as described in Section 10 Term and Termination.

 

6.           Paid
Time Off, Illness or Incapacity: Employee is entitled to vacation paid time off and absence from Employee’s duties
during regular work hours for a total of two (2) weeks each calendar year. Employee shall be entitled to paid time off for sick
leave pursuant to Company policy. If Employee cannot perform his duties because of major illness or incapacity for more than a
total of ninety (90) days in any year, the Company may terminate this Agreement upon thirty (30) days' written notice to Employee.
Employee is not entitled to receive, and the Company shall not be required to pay, Employee's compensation hereunder for absences
because of major illness or incapacity other than the total of ninety (90) days in each year granted to Employee under this Section
6.

 

	 	 	 
	Waters Employment Contract

 

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		7.	Termination of Agreement Upon Sale or Termination
of Company's Business:

 

a.             Notwithstanding
anything to the contrary contained in this Agreement, the Company may terminate Employee's employment upon thirty (30) days' written
notice to Employee upon the occurrence of any of the following events:

 

  (1)     The acquisition, directly or indirectly, of any "person" (excluding any "person" who on the date hereof owns or controls ten percent (10%) or more of the voting power of the Company's common stock), as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, within any twelve (12) month period of securities of the Company representing an aggregate of fifty percent (50%) or more of the combined voting power of the Company's then outstanding securities; provided, that for purposes of this Paragraph (a), "acquisition" shall not include shares which are received by a person through gift, inheritance, under a will or otherwise through the laws of descent and distribution;

 

(2)     During
any period of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors of the Company
(the "Board"), cease for any reason to constitute at least a majority thereof, unless the election of each new director
was approved in advance by a vote of at least a majority of the directors then still in office who were directors at the beginning
of such period; or

 

(3)     The occurrence
of any other event or circumstance which is not covered by (1) or (2) above which the Board determines affects control of the Company
and, in order to implement the purposes of this Agreement, adopts a resolution that such event or circumstance constitutes an “event”
under this Paragraph 7.

 

b.            If
the Company terminates Employee pursuant to Paragraph 7(a), Company will, for the Severance Period (as defined in Paragraph 10(c)),
pay Employee his then current salary and provide Employee with Group Health Insurance, and Company shall be required to pay any
Company Bonus and Annual Bonus earned as well as all Stock Options as defined in Exhibit A shall automatically vest.

 

		8.	Ownership of Information

 

  a.           Work For Hire Acknowledgment; Assignment. All writings, drawings, photographs, tapes, recordings, computer programs and other works in any tangible medium of expression, regardless of the form of medium, which have been or are prepared by Employee, or to which Employee contributes, in connection with Employee's employment by the Company, whether patented, copyrighted, trademarked or otherwise (collectively the "Works") and all copyrights, patents, trademarks and other rights in and to the Works, belong solely, irrevocably and exclusively throughout the world to the Company as works made for hire. However, to the extent any court or agency should conclude that the Works (or any of them) do not constitute or qualify as a "work made for hire," Employee hereby assigns, grants and delivers, solely, irrevocably, exclusively and throughout the world to the Company all ownership and other rights to the Works. Employee also agrees to cooperate with the Company and to execute such other further grants and assignments of all rights as the Company from time to time reasonably may request for the purpose of evidencing, enforcing, filing, registering or defending its ownership of the Works and the copyrights in them, and Employee hereby irrevocably constitutes and appoints the Company as Employee's agent and attorney-in-fact, with full power of substitution, in Employee's name, place and stead, to execute and deliver any and all such assignments or other instruments which Employee shall fail or refuse promptly to execute and deliver, this power and agency being coupled with an interest and being irrevocable. Without limiting the preceding provisions of this Paragraph 8(a), Employee agrees that the Company may edit and otherwise modify, and use, publish and otherwise exploit, the Works in all media and in such manner as the Company, in its discretion, may determine.

 

	 	 	 
	Waters Employment Contract

 

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  b.             Inventions, Ideas and Patents. Employee shall disclose promptly to the Company (which shall receive it in confidence), and only to the Company, any invention or idea of Employee (developed alone or with others) conceived or made during Employee's employment by the Company (or, if related to the Business, during employment or within one year after the Termination Date). Employee assigns to the Company any such invention or idea in any way connected with Employee's employment or related to the Business, research or development of the Company, or demonstrably anticipated research or development of the Company, and will cooperate with the Company and sign all papers deemed necessary by the Company to enable it to obtain, maintain, protect and defend patents covering such inventions and ideas and to confirm the exclusive ownership of the Company of all rights in such inventions, ideas and patents, and irrevocably appoints the Company as its agent to execute and deliver any assignments or documents Employee fails or refuses to execute and deliver promptly, this power and agency being coupled with an interest and being irrevocable. This constitutes written notification to Employee that this assignment does not apply to an invention for which no equipment, supplies, facility or Trade Secret information of the Company or any Customer was used and which was developed entirely on Employee's own time, unless (a) the invention relates (i) directly to the Business or (ii) to the actual or demonstrably anticipated research or development of the Company, or (b) the invention results from any work performed by Employee for the Company.

 

9.            Nonsolicitation;
Noncompetition.

 

a.           Non-Solicitation
of Customers. During the term of this Agreement, and for one (1) year after the Termination Date, Employee will not solicit
Customers within the Territory for the purpose of providing products or services comparable to those provided by the Business,
except on behalf of the Company.

 

b.           Non-Solicitation
of Company Employees. During the term of this Agreement and for one (1) year after the Termination Date, Employee will not
solicit for employment with another Person anyone who is an employee of the Company.

 

	 	 	 
	Waters Employment Contract

 

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			c.           Non-Compete. During
the term of this Agreement and for one (1) year after the Termination Date, Employee will not provide services substantially similar
to Services within the Territory to any Competitor. Employee shall be prohibited from providing in the Territory in competition
with the Company in accordance with the terms of this Agreement, including the Services expressly set forth on Schedule B attached
hereto. Employee acknowledges that Employee has been informed of and discussed with the Company the specific activities that Employee
will perform as Services and that Employee understands the scope of the activities that constitute Services and the Territory under
this Agreement. .

 

			d.           Future Employment Opportunities.
Prior to and for one (1) year after the Termination Date, Employee shall (a) provide any employer with a copy of this Agreement,
and (b) upon accepting any position, provide the Company with the employer's name and a description of the services, if any, Employee
will provide for such employer.

 

			

10.         Termination.
At all times, Employee’s employment shall be subject to “employment at will”. This Agreement and the employment
of Employee may be terminated as follows:

 

a.           Without
Cause. Either party may terminate this Agreement upon thirty (30) days notice to the other party.

 

b.           For
Cause.

			(1)         By the Company (i) pursuant to Paragraphs
6 or 7, (ii) upon conviction of the Employee of any felony or material misdemeanor under federal, state or local laws or ordinances,
except traffic violations (iii) upon the failure of Employee to diligently or competently discharge the duties assigned to him
pursuant to this Agreement; or

 

			(2)         (i)   By Employee upon thirty (30) days'
written notice to the Company for any breach of this Agreement by Company and failure to cure within that thirty (30) day notice
period; or

 

			(3)         By the Company upon any breach by Employee
of any of the terms and conditions of this Agreement or the breach by Employee of any representation or warranty made to the Company
herein or in any other agreement, document or instrument executed by Employee and delivered to the Company, or should any representation
or warranty made by Employee hereunder or thereunder prove to have been false or misleading in any material respect when made or
furnished; or

 

(4)         By
the Company upon the death of Employee.

 

	 	 	 
	Waters Employment Contract

 

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c.           Effect
of Termination.

 

(1)    In
the event Employee is terminated by the Company without cause, the Company shall (i) pay Employee his then current salary and provide
Employee with Group Health Insurance, for three (3) months (“Severance Period”) beginning with the date of termination;
(ii) pay Employee any Company Bonus and Annual Bonus due and payable (collectively “Severance Payment”); (iii) the
250,000 Stock Option Grant as described in Exhibit A shall automatically vest; and (iv) the Stock Option Grant as described in
Exhibit A {Stock Option Grants(ii)} shall vest if the performance criteria has been met. If Employee is terminated for cause or
Employee terminates this Agreement without cause, Employee shall be entitled only to compensation accrued through the date of Termination
and all benefits accrued as of such date, and shall not be entitled to any Severance Payment described herein, but shall remain
obligated to the Non-Compete and Non-Severance obligations.

 

(2)    Return
of Materials. On the Termination Date or for any reason or at any time at the Company's request, Employee will deliver promptly
to the Company all materials, documents, plans, records, notes, manuals, subcontracts, procedures, customer lists, and any other
papers and any copies thereof in Employee's possession, custody or control relating to the Company or the Business, whether defined
as Confidential Information, Trade Secret or otherwise, all of which at all times shall be the property of the Company.

 

		11.	Miscellaneous.

 

			a.    Assignability. 

 

			(1)   This Agreement may be assigned by the Company to any successor in interest to its business,
which successor in interest shall be bound herein to the same extent as the Company. Employee agrees to perform his duties for
such successor in interest to the same extent as for the Company.

 

			(2)   This is a personal agreement on the part of Employee and may not be sold, assigned, transferred
or conveyed by Employee.

 

			b.     No Waiver.
The waiver by either party of a breach of any provision of this Agreement by the other party shall not operate or be construed
as a waiver of any subsequent breach by the other party.

 

			c.     Governing Law and Jurisdiction. This Agreement shall be governed by and construed
in accordance with the laws of the State of Georgia. Any cause of action shall be filed in and the parties agree to subject themselves
to the jurisdiction of any State or Federal court of competent jurisdiction located in Atlanta, Georgia.

 

			d.     Entire Agreement. This Agreement, together with the Employee confidential Information,
Copyright and Invention Assignment Agreement, attached hereto as Exhibit C, states the entire agreement and understanding between
the parties and supersedes all prior understandings and agreements.

 

	 	 	 
	Waters Employment Contract

 

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e.    No Modification.
No change or modification to this Agreement shall be valid unless in writing and signed by both parties hereto.

 

f.    Independence
of Covenants. The covenants contained herein shall be construed as agreements independent of each other and of any other
provision of this or any other contract between the parties hereto, and the existence of any claim or cause of action by Employee
against the Company, whether predicated upon this or any other contract, shall not constitute a defense to the enforcement by the
Company of said covenants.

 

g.    Right to Injunctive
Relief. Employee recognizes and agrees that the injury the Company will suffer in the event of the Employee's breach of
any covenant or agreement contained herein cannot be compensated by monetary damages alone, and Employee therefore agrees that
the Company, in addition and without limiting any other remedies or rights that it may have, either under his Agreement or otherwise,
shall have the right to obtain an injunction against Employee from any court of competent jurisdiction enjoining any such breach
without having to show or prove damages or injury.

 

h.    Jury Trial
Waiver. Both parties hereby waive their right to a trial by jury in the event of any dispute or cause of action regarding
this Agreement.

 

IN WITNESS WHEREOF, the undersigned
have executed this Agreement as of the day and year first above written.

 

	 	VYSTAR CORPORATION
	 	 
	 	/s/ William R. Doyle
	 	William R. Doyle
	 	Chairman, President and Chief Executive Officer
	 	 
	 	EMPLOYEE:
	 	 
	 	/s/ W. Dean Waters
	 	W. Dean Waters

 

(THE REMAINDER OF THIS PAGE INTENTIONALLY
LEFT BLANK)

 

	 	 	 
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Exhibit A – Salary, Bonus,
Stock Option Grants 

 

Annual Salary. $120,000

 

Salary. Company
shall pay Employee a Yearly Salary of $120,000. The Annual Salary shall be payable bi-weekly according to the Company’s established
payroll periods.

 

Company Bonus.
Employee shall be eligible for participation in a Company bonus plan if and when such is adopted by Company. Any such bonus shall
be at the exclusive discretion of Company and Employee’s Direct Supervisor.

 

Annual Bonus. Annual
cash bonus equal to 10% of the Company’s earnings before taxes up to a maximum of $30,000.

 

Stock Option Grants.
(i) Employee shall be granted 250,000 stock options with an exercise price of $.15 per share of common stock, which options vest
100,000 at date of grant and 50,000 each on the first, second and third anniversaries of the date of the initial grant, and (ii)
500,000 options to purchase Company common stock with an exercise price of $.15 per share of common stock, which options vest (a)
125,000 upon the attainment of EBITDA (earnings before interest, taxes, depreciation and amortization) of breakeven or better for
the period from April 1, 2013, to March 31, 2014, (b) an additional 125,000 upon the attainment of annual EBITDA of $250,000 or
better for the period from April 1, 2013, to March 31, 2014, and (c) the balance upon attainment of annual EBITDA of $500,000 or
better for the period from April 1, 2013, to March 31, 2014. Such options have a term of ten years.

 

	 	 	 
	Waters Employment Contract

 

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Schedule B - Duties and Functions
(“Services”)

 

Employee shall be responsible for all financial
aspects of the Company in terms of projections, budgets, inventory, investments, public company filings and related activities
and such other duties as may be assigned by Employee’s Direct Supervisor and/or the Board of Directors of Company.

 

The Territory for Employee’s scope
of Services responsibility shall be world-wide.

 

(The
Remainder Of This Page Intentionally Left Blank)

 

	 	 	 
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Schedule  C

Employee Confidential Information,
Copyright and Invention Assignment Agreement

 

	 	 	 
	Waters Employment Contract

 

    	11ex10-1.htm

Exhibit 10.1

 

FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

This First Amendment to Loan and Security Agreement (this “First Amendment”) is entered into as of June 13, 2013, by and among The F&M Bank & Trust Company, as agent for certain lenders (“Agent”), the lenders party to the Loan Agreement (as defined below) (collectively, the “Lenders”), PIZZA INN, INC., a Missouri corporation (“Pizza Inn”) and PIE FIVE PIZZA COMPANY, INC., a Texas corporation (“Pie Five”, together with Pizza Inn, individually and collectively, jointly and severally, “Borrower”).

 

RECITALS

 

A. WHEREAS, Agent, the Lenders and Borrower entered into that certain Loan and Security Agreement dated as of August 28, 2012 (as further amended, modified or supplemented, the “Loan Agreement”);

 

B. WHEREAS, Borrower has advised Agent and the Lenders that Parent intends to issue additional common stock in an aggregate amount up to $3,000,000, the details of which are set forth in Parent’s registration statement on Form S-3 filed with the Securities Exchange Commission on May 3, 2013, as amended or supplemented to date (the “Proposed Equity Issuance”).

 

C. WHEREAS, Borrower has requested that Agent and the Lenders amend certain financial covenant definitions as set forth herein; and

 

D. WHEREAS, the parties desire to amend the Loan Agreement as set forth herein.

 

NOW, THEREFORE, in consideration of the parties’ mutual promises in this First Amendment, and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties agree as follows:

 

AGREEMENT

 

1.           Recitals.  The Recitals are incorporated in this First Amendment as set forth above.

 

2.           Definitions.  Any capitalized terms not specifically defined herein will have the meaning ascribed to them in the Loan Agreement.

 

3.           Amendment to Certain Defined Terms.  Effective as of the date hereof, the following definitions contained in Section 1.1 of the Loan Agreement are hereby deleted in their entirety and replaced with the following:

 

“Fixed Charge Coverage Ratio” shall mean and include, with respect to any fiscal period, the ratio of (a) EBITDA for such period minus the sum of (i) the excess of (Y) all unfinanced Capital Expenditures by Parent and its Subsidiaries made during such period (other than reinvested net proceeds of Asset Dispositions pursuant to subsection 2.4(B)(2)), net of any tenant improvement allowances, over (Z) the aggregate proceeds from the Proposed Equity Issuance (as defined in the First Amendment) at any time received by Parent and not previously applied to reduce unfinanced Capital Expenditures, (ii) all income taxes actually paid in cash during 

 

  

  

  

 

such period by Parent and its Subsidiaries, and (iii) any Restricted Junior Payments made by Parent pursuant to clauses (b) and (c) of Section 7.5 hereof to (b) Total Debt Payments during such period, in each case for the trailing twelve-month period on a consolidated basis immediately preceding the date of determination thereof, each calculated as of the last day of any fiscal quarter.

 

“EBITDA” means, for any period, without duplication, the total of the following for Parent and its Subsidiaries on a consolidated basis, each calculated for such period:

 

(a) net income determined in accordance with GAAP; plus,

 

(b) to the extent included in the calculation of net income, the sum of (i) income taxes paid or accrued; (ii) interest expenses paid or accrued; (iii) non-cash stock compensation; (iv) amortization and depreciation; (v) non-recurring litigation expenses, provided, the aggregate amount under this subsection (v) shall not exceed 10% of EBITDA for any period (excluding such item); (vi) transactions fees and expenses in connection with this Agreement which are set forth on Schedule 1.1 hereof; (vii) Pre-Opening Soft Costs in an aggregate amount not to exceed $37,500 per store; and (viii) other non-cash charges not to exceed $750,000 for the applicable trailing twelve month period, plus or minus

 

(c) the net change in deferred franchise and development fees.

 

4.           Addition of a Defined Term.  Effective as of the date hereof, the following definition is hereby added to Section 1.1 of the Loan Agreement in its proper alphabetical order to read as follows:

 

“First Amendment” means the First Amendment to Loan and Security Agreement by and among the Borrower, the Agent and the Lenders dated as June 13, 2013.

 

5.           No Other Waiver.  Nothing contained in this First Amendment shall be construed as a waiver by Agent or any Lender of any covenant or provision of the Loan Agreement, the other Loan Documents, or of any other contract or instrument between any Loan Party and Agent and any Lender, and the failure of Agent or Lenders at any time or times hereafter to require strict performance by any Loan Party of any provision thereof shall not waive, affect or diminish any rights of Agent or Lenders to thereafter demand strict compliance therewith.  Agent and Lenders hereby reserve all rights granted under the Loan Agreement, the other Loan Documents and any other contract or instrument between any Loan Party and Agent or any Lender.

 

6.           Conditions.  In order to induce Agent and the Lenders to enter into this First Amendment, Borrower hereby agrees:

 

  

2

  

 

 

	
  

	
(i)

	
to deliver the First Amendment duly executed by Borrowers and the Consent, Ratification and Release duly executed by the Guarantors, in each case, in form and substance satisfactory to the Agent;

 

	
  

	
(ii)

	
to pay to Agent and the Lenders a non-refundable amendment fee in the amount of $5,000 which shall be deemed fully earned and non-refundable on the date hereof and to pay to Agent and the Lenders all other fees, costs, and expenses owed to and/or incurred by Agent in connection with this First Amendment; and

 

	
  

	
(iii)

	
that all corporate proceedings taken by Borrower in connection with the transactions contemplated by this First Amendment and all documents, instruments and other legal matters incident thereto shall be satisfactory to Agent and its legal counsel.

 

7.           Representations and Warranties.  Borrower expressly reaffirms all of its representations and warranties in the Loan Agreement as true and correct in all material respects as of the date of this First Amendment (except such representations and warranties that expressly relate to an earlier date), including without limitation all representations and warranties in Section 4 of the Loan Agreement.

 

8.           No Waiver.  All of the terms and conditions of the Loan Agreement remain in full force and effect and none of such terms and conditions are, or shall be construed as, otherwise amended or modified, except as specifically set forth herein and nothing in this Agreement shall constitute a waiver by the Agent or Lenders of any Default or Event of Default, or of any right, power or remedy available to the Agent or the Lenders under the Loan Agreement, whether any such defaults, rights, powers or remedies presently exist or arise in the future.

 

9.           Signatures.  This First Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all of which counterparts together shall constitute but one and the same instrument.

 

10.           Ratification.  The Loan Agreement, together with this First Amendment and any related documents, instruments and agreements, shall hereafter refer to the Loan Agreement, as amended hereby.

 

11.           Release.  EACH BORROWER HEREBY ACKNOWLEDGES AND AGREES THAT IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE OBLIGATIONS OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM AGENT AND THE LENDERS WHICH ARE KNOWN TO IT AS OF THE DATE HEREOF.  EACH BORROWER HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES AGENT, THE LENDERS AND EACH OF THEIR RESPECTIVE PREDECESSORS, AGENTS, EMPLOYEES, AFFILIATES, SUCCESSORS AND ASSIGNS (COLLECTIVELY, THE “RELEASED PARTIES”) FROM ALL KNOWN CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES AND LIABILITIES WHATSOEVER, ANTICIPATED OR 

 

  

3

  

 

UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT OR CONDITIONAL, OR AT LAW OR IN EQUITY, IN ANY CASE ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS EXECUTED THAT ANY BORROWER MAY NOW OR HEREAFTER HAVE AGAINST THE RELEASED PARTIES, IF ANY, IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND THAT ARISE FROM ANY OF THE LOANS, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, AND/OR THE NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE.

 

 

 

[Signature Pages to Follow]

 

  

4

  

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed as of the date first above written.

 

BORROWER:

PIZZA INN, INC.

By:                      

Name:                     

Title:                     

 

BORROWER:

PIE FIVE RESTAURANTS, INC.

 

By:                      

Name:                     

Title:                    _

 

AGENT AND LENDER:

THE F&M BANK & TRUST COMPANY

By:                      

Name:                     

Title:                    _

[Signature Page to First Amendment to Credit Agreement]

  

5

  

CONSENT, RATIFICATION AND RELEASE

Each undersigned hereby consents to the terms of the First Amendment to Loan and Security Agreement (the “First Amendment”), dated as of June 13, 2013, among The F&M Bank & Trust Company, as agent for certain lenders (“Agent”), the lenders party to the Loan Agreement (as defined below) (collectively, the “Lenders”) and PIZZA INN, INC., a Missouri corporation, PIE FIVE PIZZA COMPANY, INC., a Texas corporation (collectively, “Borrower”), and confirms and ratifies the terms of that certain Guaranty executed by each undersigned Guarantor in favor of Agent and the other Lenders.  Capitalized terms used herein shall have the meaning assigned to them in the Loan Agreement. Each undersigned acknowledges that its Guaranty is in full force and effect and ratifies the same, acknowledges that no undersigned has any defense, counterclaim, set-off or any other claim known to it to diminish any undersigned’s liability under such documents, that no undersigned’s consent is required to the effectiveness of the foregoing First Amendment, and that no consent by any undersigned is required for the effectiveness of any future amendment, modification, forbearance or other action with respect to the Obligations, the Collateral, or any of the Loan Documents.  EACH UNDERSIGNED HEREBY ACKNOWLEDGES AND AGREES THAT IT HAS NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND KNOWN TO IT OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE OBLIGATIONS OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM AGENT AND THE LENDERS.  EACH UNDERSIGNED HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES AGENT, THE LENDERS AND EACH OF THEIR RESPECTIVE PREDECESSORS, AGENTS, EMPLOYEES, AFFILIATES, SUCCESSORS AND ASSIGNS (COLLECTIVELY, THE “RELEASED PARTIES”) FROM ALL KNOWN CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES AND LIABILITIES WHATSOEVER, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT OR CONDITIONAL, OR AT LAW OR IN EQUITY, IN ANY CASE ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE HEREOF THAT ANY UNDERSIGNED NOW OR HEREAFTER HAS AGAINST THE RELEASED PARTIES, IF ANY, IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND THAT ARISE FROM ANY OF THE LOANS, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, AND/OR THE NEGOTIATION FOR AND EXECUTION OF THE FIRST AMENDMENT, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE.

 

  

6

  

IN WITNESS WHEREOF, each undersigned hereto has caused this Consent, Ratification and Release to be executed as of the date first above written.

 

PIZZA INN HOLDINGS, INC.

 

By:                      

Name:                     

Title:                     

 

PIE FIVE RESTAURANTS, INC.

 

By:                      

Name:                     

Title:                     

 

 

PIBC HOLDING, INC.

 

 

By:                      

Name:                     

Title:                     

 

 

 

PIZZA INN BEVERAGE CORP.

 

 

By:                      

Name:                     

Title:                     

 

 

                PIE FIVE BEVERAGE CORP.

 

By:                      

Name:                     

Title:                     

[Signature Page to First Amendment to Loan Agreement]

  

7

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