SEC Contract Filing

Filing Date: 2024-09-26

Document Content:
<DOCUMENT>
<TYPE>EX-10.6
<SEQUENCE>7
<FILENAME>d855258dex106.htm
<DESCRIPTION>EX-10.6
<TEXT>
<HTML><HEAD>
<TITLE>EX-10.6</TITLE>
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<Center><DIV STYLE="width:8.5in" align="left">
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Exhibit 10.6 </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="right"><B>Execution Version </B></P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>EXCHANGE AGREEMENT </B></P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">This
EXCHANGE AGREEMENT (as it may be amended from time to time in accordance with the terms hereof, this &#147;<U>Agreement</U>&#148;), effective as of September&nbsp;20, 2024 (the &#147;<U>Effective Time</U>&#148;), is made by and among The Real Good
Food Company, Inc., a Delaware corporation (the &#147;<U>Corporation</U>&#148;), Real Good Foods, LLC, a Delaware limited liability company (the &#147;<U>Company</U>&#148;), <FONT STYLE="white-space:nowrap">Emblem-RGF</FONT> Main LLC
(&#147;<U>Emblem Main</U>&#148;), <FONT STYLE="white-space:nowrap">Emblem-RGF</FONT> Blocker Inc. (&#147;<U>Emblem Blocker</U>&#148;), <FONT STYLE="white-space:nowrap">Emblem-RGF</FONT> Executive LLC (&#147;<U>Emblem Executive</U>&#148; and together
with Emblem Main and Emblem Blocker, the &#147;<U>Emblem Parties</U>&#148;), PMC Financial Services Group, LLC (&#147;<U>PMC</U>&#148;) and any other holders of Class&nbsp;C Units from time to time parties hereto (each (including Emblem and PMC) a
&#147;<U>Holder</U>&#148;, and, collectively, the &#147;<U>Holders</U>&#148;). Except as otherwise specified herein, all capitalized terms used in this Agreement are defined in <U>Section</U><U></U><U>&nbsp;1.1</U>. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, in connection with the Company entering into that certain Super Priority Loan and Security Agreement (the &#147;<U>Emblem Loan
Agreement</U>&#148;), dated as of the date hereof, by and among the Company, the Corporation and the lenders party thereto, the Company has issued to the Emblem Parties the number of Class&nbsp;C Units set forth in <U>Exhibit A</U> hereto (the
&#147;<U>Issuance</U>&#148;) such that following the Issuance, the Emblem Parties will hold Exchangeable Units which represent 19.99% of the fully diluted capitalization of the Company and which are exchangeable for 19.99% of the Class&nbsp;A Common
Stock of the Corporation; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, upon the Corporation receiving the Stockholder Vote (as defined herein), including, without
limitation, an amendment to the Corporation&#146;s Certificate of Incorporation to allow for the issuance of additional Class&nbsp;B Common Stock, the Corporation will issue to the Emblem Parties a number of shares of Class&nbsp;B Common Stock (the
&#147;<U>Intermediate Issuance</U>&#148;) such that following the Intermediate Issuance, the Emblem Parties will hold Exchangeable Units and Class&nbsp;B Common Stock which represent 19.99% of the fully diluted capitalization of the Company and
which are exchangeable for Class&nbsp;A Common Stock of the Corporation representing 19.99% of the fully diluted capitalization and voting power of the Corporation; </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, in the event that PMC exercises its right to require that the Corporation hold a vote of its stockholders to obtain the Additional
Stockholder Vote, upon the Corporation obtaining such Additional Stockholder Vote, including, without limitation, an amendment to the Corporation&#146;s Certificate of Incorporation to allow for the issuance of additional Class&nbsp;B Common Stock,
the Corporation will issue Class&nbsp;B Common Stock to PMC and the Company shall issue Class&nbsp;C Units (the&#147;PMC Issuance&#148;) representing 25% of the greater of (a)&nbsp;the fully diluted capitalization of the Company as of the date
hereof and (b)&nbsp;the fully diluted capitalization of the Company as of the date of the PMC Issuance the voting power of the Corporation and fully diluted capitalization of the Company and which are exchangeable for Class&nbsp;A Common Stock of
the Corporation representing 25% of the fully diluted capitalization of the Corporation, and, for the avoidance of doubt, following the PMC Issuance the Emblem Parties (a)&nbsp;prior to the Second Step Issuance, shall continue to hold Exchangeable
Units and Class&nbsp;B Common Stock representing 19.99% of the fully diluted capitalization of the Company and which are exchangeable for Class&nbsp;A Common Stock of the Corporation representing 19.99% of the fully diluted capitalization of the
Corporation and (b)&nbsp;after the Second Step Issuance, shall continue to hold Exchangeable Units and Class&nbsp;B Common Stock representing 49.99% of the fully diluted capitalization of the Company and which are exchangeable for Class&nbsp;A
Common Stock of the Corporation representing 49.99% of the fully diluted capitalization of the Corporation; </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">WHEREAS, upon the Emblem
Parties providing additional financing to the Company in accordance with and pursuant to the Emblem Loan Agreement (the &#147;<U>Second Step Transaction</U>&#148;), and subject to the Company receiving the Stockholder Vote, the Company will issue to
the Emblem Parties a number of additional Class&nbsp;C Units and shares of Class&nbsp;B Common Stock (the &#147;<U>Second Step Issuance</U>&#148;) such that following the Second Step Issuan