SEC Filing Document

Company: Synergy CHC Corp.
Ticker: SNYR
CIK: 1562733
Filing Type: 8-K
Document Type: EX-10.1
Date Filed: 2025-06-04
Accession Number: 0001213900-25-050984
Exchange: Nasdaq
SIC Code: 2833
SIC Description: Medicinal Chemicals & Botanical Products
URL: https://www.sec.gov/Archives/edgar/data/1562733/000121390025050984/ea024464201ex10-1_synergy.htm

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(B) above or (2) the occurrence of a Default or an Event of Default, such Net Cash Proceeds, if not theretofore so used, shall be used to prepay the Obligations in accordance with Section 2.5(c)(ii) or 2.5(c)(iv) as applicable. (vii) Upon the incurrence by any Loan Party or any of its Subsidiaries of any Indebtedness under an ABL Facility, the Borrower shall prepay the outstanding amount of the Loans in accordance with Section 2.5(d) in an amount equal to 100% of the Net Cash Proceeds received by such Person in connection therewith, up to an amount equal to the amount by which the aggregate principal amount of the Term Loans funded under this Agreement as of such date exceeds $15,000,000. The provisions of this Section 2.5(c)(vii) shall not be deemed to be implied consent to the ABL Facility in contravention of any of the terms and conditions of this Agreement.

(d) Application
of Payments. Each prepayment pursuant to subsections (c)(i), (c)(ii), (c)(iii), (c)(iv), (c)(v), (c)(vi) and (c)(vii) above shall
be applied first, ratably, to any outstanding Agent Advances until paid in full; and second, ratably, to the Term Loan,
until paid in full. Each such prepayment of the Term Loan shall be applied against the remaining installments of principal of the Term
Loan in the inverse order of maturity. Notwithstanding the foregoing, after the occurrence and during the continuance of an Event of Default,
if the Administrative Agent has elected, or has been directed by the Collateral Agent or the Required Lenders, to apply payments in respect
of any Obligations in accordance with Section 4.3(b), prepayments required under Section 2.5(c) shall be applied in the manner set forth
in Section 4.3(b).

(e) Interest
and Fees. Any prepayment made pursuant to this Section 2.5 shall be accompanied by (i) accrued interest on the principal amount being
prepaid to the date of prepayment, (ii) any Funding Losses payable pursuant to Section 2.8 and (iii) the Applicable Premium, if any, payable
in connection with such prepayment of the Loans to the extent required under Section 2.6.

(f) Cumulative
Prepayments. Except as otherwise expressly provided in this Section 2.5, payments with respect to any subsection of this Section 2.5
are in addition to payments made or required to be made under any other subsection of this Section 2.5.

Section 2.6. Fees.

(a) Applicable
Premium.

(i) Upon
the occurrence of an Applicable Premium Trigger Event, the Borrower shall pay to the Administrative Agent, for the account of the Lenders
in accordance with their Pro Rata Shares, the Applicable Premium.

(ii) Any
Applicable Premium payable in accordance with this Section 2.6(a) shall be presumed to be equal to the liquidated damages sustained by
the Lenders as the result of the occurrence of the Applicable Premium Trigger Event and the Loan Parties agree that it is reasonable under
the circumstances currently existing. THE LOAN PARTIES EXPRESSLY WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW THAT PROHIBITS
OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING APPLICABLE PREMIUM IN CONNECTION WITH ANY ACCELERATION.

(iii) The
Loan Parties expressly agree that: (A) the Applicable Premium is reasonable and is the product of an arm’s length transaction between
sophisticated business people, ably represented by counsel; (B) the Applicable Premium shall be payable notwithstanding the then prevailing
market rates at the time payment is made; (C) there has been a course of conduct between the Lenders and the Loan Parties giving specific
consideration in this transaction for such agreement to pay the Applicable Premium; (D) the Loan Parties shall be estopped hereafter from
claiming differently than as agreed to in this paragraph; (E) their agreement to pay the Applicable Premium is a material inducement to
Lenders to provide the Commitments and make the Loans; and (F) the Applicable Premium represents a good faith, reasonable estimate and
calculation of the lost profits or damages of the Agents and the Lenders and that it would be impractical and extremely difficult to ascertain
the actual amount of damages to the Agents and the Lenders or profits lost by the Agents and the Lenders as a result of such Applicable
Premium Trigger Event.

(iv) Nothing
contained in this Section 2.6(a) shall permit any prepayment of the Loans or reduction of the Commitments not otherwise permitted by the
terms of this Agreement or any other Loan Document.

(b) Audit
and Collateral Monitoring Fees. The Borrower acknowledges that pursuant to Section 7.1(f), representatives of the Agents may visit
any or all of the Loan Parties and/or conduct inspections, audits, physical counts, valuations, appraisals, environmental site assessments
and/or examinations of any or all of the Loan Parties at any time and from time to time during normal business hours, and at any reasonable
time following reasonable advance written notice (but in no event less than two (2) Business Days unless has occurred and is continuing).
The Borrower agrees to pay (i) $1,500 per day per examiner plus the examiner’s reasonable out-of-pocket costs and reasonable expenses
incurred in connection with all such visits, inspections, audits, physical counts, valuations, appraisals, environmental site assessments
and/or examinations, and (ii) the cost of all visits, inspections, audits, physical counts, valuations, appraisals, environmental site
assessments and/or examinations conducted by a third party on behalf of the Agents; provided that so long as no Event of Default shall
have occurred and be continuing, the Borrower shall not be obligated to reimburse the Agents for more than (A) one (1) inspection visits
in any calendar year and (B) one (1) audit, physical count, valuation, appraisal, environmental site assessment and/or examination during
any calendar year; provided further that if an Event of Default has occurred and is continuing, all such inspections, audits, physical
counts, valuations, appraisals, environmental site assessments and/or examinations of any or all of the Loan Parties during such occurrence
and continuation shall be at the expense of the Borrower.

(c) Fee
Letter. As and when due and payable under the terms of the Fee Letter, the Borrower shall pay the fees set forth in the Fee Letter.

Section 2.7. Term SOFR
Rate Option; Benchmark Replacement.

(a) The
Borrower may, at any time and from time to time, so long as no Default or Event of Default has occurred and is continuing, elect to have
interest on all or a portion of the Loans be charged at a rate of interest based upon Term SOFR (the “Term SOFR Rate Option”)
by notifying the Administrative Agent prior to 12:00 p.m. noon (New York City time) at least three Business Days prior to (i) the proposed
borrowing date of a Loan (as provided in Section 2.2), (ii) in the case of the conversion of a Reference Rate Loan to a Term SOFR Rate
Loan, the commencement of the proposed Interest Period or (iii) in the case of the continuation of a Term SOFR Rate Loan as a Term SOFR
Rate Loan, the last day of the then current Interest Period (the “Term SOFR Rate Deadline”). Notice of the Borrower’s
election of the Term SOFR Rate Option for a permitted portion of the Loans and an Interest Period pursuant to this Section 2.7(a) shall
be made by delivery to the Administrative Agent of (A) a Notice of Borrowing (in the case of the initial making of a Loan) in accordance
with Section 2.2 or (B) a Term SOFR Rate Notice prior to the Term SOFR Rate Deadline (or by telephonic notice received by the Administrative
Agent before the Term SOFR Rate Deadline (to be confirmed by delivery to the Administrative Agent of a Term SOFR Rate Notice received
by the Administrative Agent prior to 5:00 p.m. (New York City time) on the same day)). Promptly upon its receipt of each such Term SOFR
Rate Notice, the Administrative Agent shall provide a copy thereof to each of the Lenders. Each Term SOFR Rate Notice shall be irrevocable
and binding on the Borrower.

(b) Interest
on Term SOFR Rate Loans shall be payable in accordance with Section 2.4(c). On the last day of each applicable Interest Period, unless
the Borrower properly has exercised the Term SOFR Rate Option with respect thereto, the interest rate applicable to such Term SOFR Rate
Loans automatically shall convert to the rate of interest then applicable to Reference Rate Loans of the same type hereunder. At any time
that a Default or an Event of Default has occurred and is continuing, the Borrower no longer shall have the option to request that any
portion of the Loans bear interest at Term SOFR and the Administrative Agent shall have the right to convert the interest rate on all
outstanding Term SOFR Rate Loans to the rate of interest then applicable to Reference Rate Loans of the same type hereunder prior to the
last day of the then current Interest Period.