Document:

cnfr-ex1029_471.htm

 

Exhibit 10.29

SIXTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER

THIS SIXTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER (“Amendment”), is made as of the 8th day of August, 2022, by and among CONIFER HOLDINGS, INC. (“Borrower”) and THE HUNTINGTON NATIONAL BANK (“Bank”).

RECITALS:

A.Borrower and Bank entered into a Credit Agreement dated as of June 21, 2018, as amended by five Amendments (“Agreement”).

B.Borrower and Bank desire to amend the Agreement, all as set forth below.

NOW, THEREFORE, the parties agree as follows:

1.The following definitions in Section 1.1 of the Agreement are amended to read as follows:

“Borrowing Limit” shall mean as of any date of determination thereof an amount equal to (a) the Revolving Credit Amount as of such date minus (b) the aggregate principal amount of the Senior Debt (excluding the Obligations) as of such date.

“Revolving Credit Amount” shall mean Ten Million Dollars ($10,000,000), subject to reduction under Section 2.7.”

2.Section 2.1 of the Agreement is amended to read as follows:

	
“2.1
	
Revolving Credit Amount. Subject to the terms and conditions of this Agreement (including without limitation Section 2.3), Bank may make Advances to Borrower at any time and from time to time from the Effective Date until the Revolving Credit Maturity Date, in an aggregate principal amount not to exceed at any one time outstanding the lesser of (i) the Revolving Credit Amount and the Borrowing Limit. All of the Advances under this Section 2 shall be evidenced by the Revolving Credit Note under which Advances, repayments and re-advances may be made, subject to the terms and conditions of this Agreement. Notwithstanding anything herein or in the Loan Documents to the contrary.  At no time shall Bank be under any obligation or have any commitment or duty to make any Advances and Bank, at any time and from time to time, without notice, reason or cause, and in its sole and absolute discretion, may refuse to make Advances, and/or issue Letters of Credit for the account of, to Borrower without incurring any liability due to such refusal and without affecting Borrower's liability under this Agreement and the other Loan Documents for any and all indebtedness hereunder or under any of the other Loan Documents.”
	
 

4882-9726-0074_2

 

3.The references in Sections 2.7, 2.8 and 2.10 of the Agreement to “Revolving Credit Commitment” are amended to read “Revolving Credit Amount”.

4.Section 2.9 of the Agreement is amended to read as follows:

“2.9[Reserved].”

 

5.Section 8.1(h) of the Agreement to read as follows:

“(h)[Reserved].”

 

6.Section 8.15 of the Agreement to read as follows:

“8.15[Reserved].”

 

7.Section 9.6 of the Agreement to read as follows:

“9.6Restricted Payments.  The Borrower shall not declare or pay any dividends or make any other distribution upon its equity interests if at the time declared or paid or if after giving effect thereto a Default or Event of Default (or event which with the giving of notice or the passage of time or both would constitute an Event of Default) shall have occurred and be continuing or would result therefrom.”  

 

8.Section 10.2 of the Agreement is amended to read as follows:

	
“10.2
	
Exercise of Remedies. If an Event of Default has occurred and is continuing hereunder:
	
 

	
 
	
(a)
	
Bank may declare the entire unpaid principal Obligations, immediately due and payable, without presentment, notice or demand, all of which are hereby expressly waived by Borrower;
	
 

	
 
	
(b)
	
Upon the occurrence of any Event of Default specified in subsection 10.1(f) or (g), above, and notwithstanding the lack of any declaration by Bank, the entire unpaid principal Obligations shall become automatically and immediately due and payable; and 
	
 

	
 
	
(c)
	
Bank may exercise any remedy permitted by this Agreement, the other Loan Documents or law.”
	
 

9.The Borrower has advised the Bank that it violated the provisions of Section 8.15(a) and 8.15(f) of the Credit Agreement for period ending June 30, 2022 (the “Covenant Violations”). The Borrower has requested that the Bank waive any Event of Default under the Agreement resulting from the Covenant Violations. The Bank hereby waives such Events of Default (“Waiver”). This Waiver shall become effective upon receipt by Bank of a waiver of any existing defaults or events of default under the Note Purchase Agreement. The Waiver shall not be deemed to amend or alter in any respect the terms and conditions of the Agreement, or to constitute a 

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waiver or release by the Bank of any right, remedy or Event of Default under the Agreement, except to the extent expressly set forth above. Furthermore, the Waiver shall not affect in any manner whatsoever any rights or remedies of the Bank with respect to any other non-compliance by Borrower with the Agreement whether in the nature of an Event of Default or otherwise, and whether now in existence or subsequently arising.

10.Borrower hereby represents and warrants that, after giving effect to the amendment contained herein, (a) execution, delivery and performance of this Amendment and any other documents and instruments required under this Amendment or the Agreement are within its corporate powers, have been duly authorized, are not in contravention of law or the terms of such Borrower’s Articles of Incorporation or Bylaws and do not require the consent or approval of any governmental body, agency, or authority; and this Amendment and any other documents and instruments required under this Amendment or the Agreement, will be valid and binding in accordance with their terms; (b) the continuing representations and warranties of Borrower set forth in the Agreement are true and correct on and as of the date hereof with the same force and effect as made on and as of the date hereof; (c) except as previously disclosed by Borrower to Bank, no Event of Default (as defined in the Agreement) or condition or event which, with the giving of notice or the running of time, or both, would constitute an Event of Default under the Agreement, as hereby amended, has occurred and is continuing as of the date hereof.  Borrower expressly acknowledges the conversion of the revolving line of credit under the Agreement from a committed facility to a discretionary facility under which Bank may it is sole discretion refuse to make Advances or otherwise extend credit to Borrower

11.AS OF THE DATE HEREOF BORROWER  REPRESENTS AND WARRANTS THAT IT IS AWARE OF, AND POSSESSES, NO CLAIMS OR CAUSES OF ACTION AGAINST BANK.  NOTWITHSTANDING THIS REPRESENTATION AND AS FURTHER CONSIDERATION FOR THE AGREEMENTS AND UNDERSTANDINGS HEREIN, BORROWER ON BEHALF OF ITS EMPLOYEES, AGENTS AND SUCCESSORS AND ASSIGNS, HEREBY RELEASES BANK, ITS OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ATTORNEYS, AFFILIATES, SUBSIDIARIES, SUCCESSORS AND ASSIGNS FROM ANY LIABILITY, CLAIM, RIGHT OR CAUSE OF ACTION THAT NOW EXISTS, OR HEREAFTER ARISES, WHETHER KNOWN OR UNKNOWN, ARISING FROM OR IN ANY WAY RELATED TO FACTS IN EXISTENCE AS OF THE DATE HEREOF.  BY WAY OF EXAMPLE AND NOT LIMITATION, THE FOREGOING INCLUDES ANY CLAIMS IN ANY WAY RELATED TO ACTIONS TAKEN OR OMITTED TO BE TAKEN BY LENDER UNDER THE LOAN DOCUMENTS (INCLUDING, WITHOUT LIMITATION, ANY REFUSAL BY BANK TO MAKE ADVANCES OR OTHERWISE EXTEND CREDIT TO BORROWER UNDER THE AGREEMENT OR THE OTHER LOAN DOCUMENTS), THE BUSINESS RELATIONSHIP WITH LENDER AND ALL OTHER OBLIGATIONS OF ANY NATURE OR KIND OF BORROWER, ANY ORAL AGREEMENTS OR UNDERSTANDINGS (ACTUAL OR ALLEGED), ANY BANKING RELATIONSHIPS THAT BORROWER HAS OR MAY HAVE HAD WITH BANK AT ANY TIME AND FOR ANY REASON.

12.In accordance with the Credit Agreement, Borrower is responsible for all reasonable out-of-pocket costs incurred by Bank, including without limit reasonable attorneys' fees, with regard to the preparation and execution of this Amendment and any documents, instruments or agreements executed in connection herewith. Borrower hereby acknowledges that Bank may receive a benefit, including a discount, credit or other accommodation, from its legal 

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counsel in certain other matters based on the fees such counsel may receive as a result of its overall relationship with Bank, including fees paid in connection with this Amendment.

13.Except as expressly provided herein, all of the terms and conditions of the Agreement remain unchanged and in full force and effect.

14.This Amendment shall be effective upon execution of this Amendment by Borrower and Bank.

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IN WITNESS the due execution hereof as of the day and year first above written.

	
THE HUNTINGTON NATIONAL BANK
	
CONIFER HOLDINGS, INC.

 

 

 

By:/s/ T. Elliot ShaferBy:/s/ Brian Roney

T. Elliot ShaferBrian Roney

 

Its:   Vice PresidentIts:President

 

 

 

By:/s/ Nicholas Petcoff

Nicholas Petcoff

 

Its:Co-CEO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Sixth Amendment to Credit Agreement (4882-9726-0074)]

4882-9726-0074_2EX-10.3

  Exhibit 10.3

  FIRST AMENDMENT TO ASSET Purchase AGREEMENT

  This First Amendment to Asset Purchase Agreement (this “Amendment”) is made as of August 3, 2022 (the “Effective Date”), by and among BWSC, LLC, a California limited liability company (the “Buyer”), Natural Merchants, Inc., an Oregon corporation (the “Seller”), and Edward Field, an individual (the “Owner”).  Each of Seller, the Buyer and the Owner are sometimes referred to herein, individually as a “Party” and, collectively, as the “Parties”.  

  	RECITALS	

  WHEREAS, the Parties entered into that certain Asset Purchase Agreement (the “Purchase Agreement”), dated as of May 12, 2021, pursuant to which, among other things, Buyer agreed to purchase the Purchased Assets and assume the Assumed Liabilities as described in the Purchase Agreement, subject to the waiver or satisfaction of certain closing conditions set forth in, and on the terms and conditions of, the Purchase Agreement; and

  WHEREAS, the Parties desire to amend certain provisions of the Purchase Agreement.

  NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, and intending to be legally bound hereby, the Parties hereby agree as follows:

  1.The Parties hereby agree that the 2021 Performance Earn-Out Amount is $1,596,982.00.

  2.Amendment.  The Purchase Agreement hereby is amended as follows:  

  a.Section 2.06(g) of the Purchase Agreement shall be deleted in its entirety and replaced as follows: 

  (g) Subject to the terms and conditions set forth in this Section 2.06, as additional consideration for the transactions contemplated by this Agreement, the Seller shall be entitled to receive One Million Five Hundred Ninety-Six Thousand Nine Hundred Eighty-Two Dollars ($1,596,982) (the “2021 Performance Earn-Out Amount”). 

  (i) The 2021 Performance Earn-Out Amount shall be paid to Seller by wire transfer of immediately available funds in nine monthly installments beginning on September 15, 2022. 

  (ii) Each of the first eight (8) payments shall be 1/12th of the 2021 Performance Earn-Out Amount and the ninth payment shall be the balance of the 2021 Performance Earn-Out Amount (each payment, a “2021 Earn-Out Payment” and collectively, the “2021 Earn-Out Payments”) as more specifically set forth in Exhibit A hereto. The 2021 Earn-Out Payments will include ten percent (10%) annual interest, accruing monthly from July 1, 2022.  

  (iii) Each 2021 Earn-Out Payment must be made by wire transfer of immediately available funds to the Seller to be received by no later than ten (10) days following the date such 2021 Earn-Out Payment is due. In the case that a 2021 Earn-Out Payment is not received within such timeframe, then the 2021 Earn-Out Payment then due will incur a penalty and be increased by five percent (5%).  In the interest of clarity, until the payment is received, the 10% interest will continue to accrue on the increased payment until payment is received by the Seller. 

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  (iv) (A) In the event that Winc, or any of its subsidiaries, secures an aggregate of Twelve Million Dollars ($12,000,000) of third-party financing (either in the form of an equity investment, or debt financing) or (B) undergoes either of the following: (1) a merger or consolidation into or with any other entity or entities, or a sale, exchange, conveyance or other disposition of the equity securities of Winc in a single transaction or a series of transactions, in which in any case the stockholders of Winc immediately prior to such merger, consolidation, sale, exchange, conveyance or other disposition or first of such series of transactions possess less than a majority of the voting power of Winc’s or any successor entity’s issued and outstanding capital securities immediately after such transaction or series of such transactions; (2) a single transaction or series of transactions, pursuant to which an entity that is not a direct or indirect wholly owned subsidiary of Winc acquires all or substantially all of Winc’s assets, or (3) Winc commences any case, proceeding or other action (a) under any existing or future law of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to adjudicate it as bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition or other relief with respect to it or its debts, or (b) seeking appointment of a receiver, trustee, custodian, conservator or other similar official for it or for all or any substantial part of its assets, or (c) Winc, or any of its Subsidiaries shall make a general assignment for the benefit of its creditors, then the full amount of the 2021 Performance Earn-Out Amount that has not yet been paid to Seller shall become due and payable and paid within ten (10) Business Days of such event. 

  In the event that the 2022 Performance Earn-Out Amount becomes payable to the Seller pursuant to this Section 2.06, then they Buyer shall make (or cause to be made) such payment by wire transfer of immediately available funds within five (5) Business Days after such amount has been finally determined in accordance with this Section 2.06 to the Seller. Notwithstanding the foregoing, to the extent required to comply with Section 409A of the Code, in all events the 2022 Performance Earn-Out Amount, if any, will be paid during the 2023 calendar year. 

  3.Release of Indemnification Escrow Funds.  Contemporaneous of the Effective Date, the Buyer and the Seller shall jointly direct the Escrow Agent, in the form attached hereto as Exhibit B, to pay the Seller Six Hundred Fifty Thousand Dollars ($650,000) from the Indemnification Escrow Amount.

  4.Reimbursement of Attorneys’ Fees.  The Buyer shall reimburse the Seller (i) its reasonable and documented out-of-pocket attorneys’ fees incurred in connection with the review and negotiation of this Amendment not to exceed Ten Thousand Dollars ($10,000) and (ii) its reasonable and documented out-of-pocket accountant’s fees incurred in connection with the review and negotiation of this Amendment not to exceed Four Thousand Two Hundred Dollars ($4,200.00).

  5.Representations & Warranties.  The Buyer hereby represents and warrants that it has all requisite authority to enter into and complete the transaction contemplated herein.  The execution and delivery of this Agreement by the Buyer, and the consummation by the Buyer of the transactions contemplated hereby and thereby, have been duly approved by the Buyer, and no further action is required on the part of the Buyer to authorize this Agreement or the transactions contemplated hereby and thereby.

  6.Full Force and Effect.  Except as expressly modified by this Amendment, all of the terms, covenants and provisions of the Purchase Agreement shall continue in full force and effect in accordance with their terms.  In the event of any conflict or ambiguity between the terms of this Amendment and those of the Purchase Agreement as existing prior to this Amendment, the terms of this Amendment shall control.  All references to the Purchase Agreement in the Purchase Agreement or in any of the Transaction Documents shall refer to the Purchase Agreement, as amended by this Amendment.

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  7.Definitions.  Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Purchase Agreement.

  8.Entire Agreement.  This Amendment constitutes the entire agreement between the Parties with respect to the subject matter hereof, and supersedes all prior and contemporaneous understandings, written or oral, among them with respect to the subject matter hereof.

  9.Counterparts.  This Amendment may be executed in multiple counterparts (including electronically-transmitted counterparts), each of which will be considered an original instrument, but all of which will be considered one (1) and the same agreement, and will become binding when one (1) or more counterparts have been signed by each of the Parties and delivered to the other Parties.

  10.Governing Law.  The validity, interpretation and performance of this Amendment shall be governed by and construed in accordance with the internal laws of the State of Delaware without regard to conflicts of laws.

  [REMAINDER OF PAGE LEFT BLANK INTENTIONALLY]

   

   

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  IN WITNESS WHEREOF, the parties hereby execute this Amendment on the day and year first set forth above.

   

  BUYER:

   

  BWSC, LLC, 	

  a California limited liability company

   

  By: Winc, Inc.,
a Delaware corporation and its sole member 

   

   

  By: /s/ Geoffrey McFarlane			

  	Name:	Geoffrey McFarlane 

  	Title:	Chief Executive Officer 

   

   

   

  SELLER:

   

  NATURAL MERCHANTS, INC., 

  an Oregon corporation

   

   

  By: /s/ Edward Field				

  	Name:	Edward Field

  	Title:	President

   

   

   

  OWNER:

   

  /s/ Edward Field				

  	Edward Field

   

   

   

  

  Exhibit A

   

  2021 Performance Earn-Out Payments

   

   

  

  Exhibit B 

   

  Escrow Instructions 

   

   

  307099498.1

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