SEC Contract Filing

Filing Date: 2015-01-07

Document Content:
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<TYPE>EX-10.7
<SEQUENCE>10
<FILENAME>swexh10-7.htm
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<TITLE>January 7, 2015 Exhibit 10.7</TITLE>
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<B><p align="right"> EXHIBIT 10.7</P></B>

<B><p align="right">
** Portions of this agreement have been omitted and filed separately with the SEC<BR>pursuant to a confidential treatment request<P></B>

<B><p align="right">
CONFIDENTIAL<BR>
EXECUTION VERSION</P></B>

<B><U><P ALIGN="CENTER">PROMISSORY NOTE</P></B></U>

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<FONT SIZE=2><P>Up to $15,000,000.00 USD (the &quot;Maximum Loan Amount&quot;)</TD>
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<FONT SIZE=2><P ALIGN="RIGHT">December 31, 2014 </P></TD>
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<P ALIGN="JUSTIFY">This Promissory Note (&quot;<U>Note</U>&quot;) is made and entered into by S&amp;W Seed Company, a Nevada corporation (&quot;<U>Borrower</U>&quot;) in
favor and for the benefit of Pioneer Hi-Bred International, Inc., an Iowa corporation (together with any and all of its successors and assigns and/or any other holder of this Note,
&quot;<U>Lender</U>&quot;). </P>

<P ALIGN="JUSTIFY">&#9;WHEREAS, Borrower and Lender are parties to that certain Asset Purchase and Sale Agreement dated December 19, 2014 (the &quot;<U>APSA</U>&quot;),
pursuant to which, among other things, Lender agreed to sell to Borrower, and Borrower agreed to purchase from Lender, the &quot;Purchased Assets&quot; (as such term is defined in the
APSA) for an aggregate purchase price equal to Thirty Seven Million United States Dollars ($37,000,000), as adjusted pursuant to the terms of the APSA, of which Twenty Seven Million United
States Dollars shall be paid in cash at the Closing (as such term is defined in the APSA) and Ten Million United States Dollars shall be paid on the terms and conditions set forth herein;</P>

<P ALIGN="JUSTIFY">&#9;WHEREAS, pursuant to the terms of the APSA, Borrower may be required to pay to Lender an Earn-Out Payment (as such term is defined in the APSA), which
shall total not more than Five Million United States Dollars ($5,000,000), and which amounts shall be paid on the terms and conditions set forth herein; </P>

<P ALIGN="JUSTIFY">&#9;WHEREAS, as partial consideration for the purchase and sale of the Purchased Assets, and in lieu of paying Ten Million United States Dollars ($10,000,000) of the
aggregate purchase price on the date hereof, Borrower agrees to pay to Lender cash in the amount of Ten Million United States Dollars ($10,000,000), on the terms and conditions set forth
herein; </P>

<P ALIGN="JUSTIFY">WHEREAS, in lieu of paying the Earn-Out Payment on the applicable date set forth in the APSA, Borrower agrees to pay to Lender cash in an amount equal to the Earn-Out
Payment, in an aggregate amount up to Five Million United States Dollars ($5,000,000), on the terms and conditions set forth herein;</P>

<P ALIGN="JUSTIFY"><A NAME="_DV_M4"></A>WHEREAS, Borrower acknowledges and understands that Lender would not have accepted this Note without the mutual agreement and
understanding that all obligations arising under this Note are enforceable.</P>

<P ALIGN="JUSTIFY">NOW THEREFORE, in consideration of the mutual promises and covenants set forth herein and for other good and valuable consideration, the sufficiency of which is
hereby admitted, the parties hereby agree as follows:</P>

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<OL>

<P ALIGN="JUSTIFY"><LI><U>Total Principal Amount</U>. Borrower acknowledges and agrees that this Note evidences, and is given in consideration for (i) an initial advancement on the
date hereof of Ten Million United States Dollars ($10,000,000), which amount constitutes part of the purchase price payable pursuant to the APSA, (ii) an advance on October 31, 2017, of an
amount equal to the Earn-Out Payment (but not to exceed Five Million United States Dollars ($5,000,000), which amount is payable by Borrower to Lender pursuant to Section 2.4 of the APSA
(the amounts described in this <U>Section 1(i)</U> and <U>(ii)</U>, collectively, the &quot;<U>Total Principal Amount</U>&quot;). </LI></P>

<P ALIGN="JUSTIFY"><LI><U>Payments</U>. Borrower agrees to pay Lender (i) annually on December 31<SUP>st</SUP> all accrued but unpaid interest on the Total Principal Amount
then outstanding and (ii) the entire balance of the Total Principal Amount then outstanding, plus any remaining interest due hereunder, on December 31, 2017. </LI></P>
<U>
<P ALIGN="JUSTIFY"><LI>Interest Rate</U>. From the date hereof until this Note is paid in full, interest on the Total Principal Amount outstanding hereunder shall be charged at the rate
which is at all times equal to three percent (3%) per annum (the &quot;<U>Interest Rate</U>&quot;), compounded annually. </LI></P>
<U>
<P ALIGN="JUSTIFY"><LI>Method of Payment</U>. Any payment by Borrower to Lender hereunder shall be made in immediately available funds in lawful money of the United States of
America and shall be paid by wire transfer to the account set forth below. </LI></P>

<P ALIGN="JUSTIFY">Payments made with wire transfer shall be sent to: </P>

<P ALIGN="JUSTIFY">[**]<SUP>1</SUP>&nbsp;&nbsp;</P>

<P ALIGN="JUSTIFY"><LI><U>Security; Loan Documents</U>. The obligations of Borrower under this Promissory Note are secured by (i) that certain Security Agreement, dated as of the date
hereof (the &quot;<U>Security Agreement</U>&quot;), by Borrower (in its capacity as Grantor) in favor of Lender, (ii) that certain Mortgage, dated as of the date hereof (the
&quot;<U>Mortgage</U>&quot;), by Borrower (in its capacity as Mortgagor) in favor of Lender and (iii) that certain Deed of Trust, dated as of the date hereof (the &quot;<U>Deed</U>&quot;),
by Borrower (in its capacity as Trustor) in favor of Lender. This Note, the Security Agreement, the Mortgage, the Deed, the APSA (but only with respect to Section 2.4