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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Section 2.5(c)(ii) or applied as provided in Section 2.5(c)(vi). “Permitted Indebtedness” means: (a) any Indebtedness owing to any Agent or any Lender under this Agreement and the other Loan Documents; (b) any other Indebtedness listed on Schedule 7.2(b), and any Permitted Refinancing Indebtedness in respect of such Indebtedness; (c) Permitted Purchase Money Indebtedness and any Permitted Refinancing Indebtedness in respect of such Indebtedness; (d) Permitted Intercompany Investments; (e) Indebtedness incurred in the ordinary course of business under performance, surety, statutory and appeal bonds; (f) Indebtedness owed to any Person providing property, casualty, liability, or other insurance to the Loan Parties, so long as the amount of such Indebtedness is not in excess of the amount of the unpaid cost of, and shall be incurred only to defer the cost of, such insurance for the period in which such Indebtedness is incurred and such Indebtedness is outstanding only during such period;

(g) Indebtedness
in respect of Taxes, assessments or other governmental charges to the extent that payment thereof shall not at the time be required to
be made in accordance with Section 7.1(c)(ii);

(h) the
incurrence by any Loan Party of Indebtedness under Hedging Agreements that are incurred for the bona fide purpose of hedging the interest
rate, commodity, or foreign currency risks associated with such Loan Party’s operations and not for speculative purposes;

(i) Indebtedness
incurred in respect of credit cards, credit card processing services, debit cards, stored value cards, purchase cards (including so-called
“procurement cards” or “P-cards”) or other similar cash management services, in each case, incurred in the ordinary
course of business;

(j) customer
deposits and advance payments received in the ordinary course of business from customers for goods and services purchased in the ordinary
course of business;

(k) Indebtedness
in respect of cash management obligations (including ordinary course overdraft obligations) and netting services, automatic clearinghouse
and similar arrangements in connection with deposit accounts in the ordinary course of business;

(l) Indebtedness
under an ABL Facility incurred after the Effective Date;

(m) Subordinated
Indebtedness consisting of (i) Indebtedness evidenced by the Sanders Notes and (ii) other Indebtedness in an original principal amount
not to exceed $500,000 at any time outstanding with respect to all such Indebtedness under this clause (ii), and in each case with respect
to the foregoing clauses (i) – (ii), so long as (A) no Event of Default has occurred and is continuing or would result therefrom,
(B) such Indebtedness is not incurred for working capital purposes, (C) such Indebtedness does not mature prior to the date that is 91
days after the Stated Term Loan Maturity Date, (D) such Indebtedness does not amortize until 91 days after the Stated Term Loan Maturity
Date, (E) such Indebtedness does not permit payment of interest thereon in cash or Cash Equivalents, except with respect to the Sanders
Notes and subject to compliance with the Sanders Notes Interest Payment Conditions, and (F) such Indebtedness is subject to a Subordination
Agreement;

(n) contingent
liabilities in respect of any indemnification obligation, adjustment of purchase price, non-compete, or similar obligation of any Loan
Party incurred in connection with the consummation of one or more Permitted Acquisitions;

(o) unsecured
Indebtedness of any Loan Party in respect of earn-outs owing to sellers of assets or Equity Interests to such Loan Party that is incurred
in connection with the consummation of one or more Permitted Acquisitions so long as such unsecured Indebtedness is on terms and conditions
acceptable to the Administrative Agent; and

(p) Indebtedness
of a Person whose assets or Equity Interests are acquired by a Loan Party in a Permitted Acquisition in an aggregate amount not to exceed
$250,000 at any one time outstanding; provided, that, such Indebtedness (i) is either purchase money Indebtedness or a Capitalized Lease
with respect to equipment or mortgage financing with respect to real property, (ii) was in existence prior to the date of such Permitted
Acquisition, and (iii) was not incurred in connection with, or in contemplation of, such Permitted Acquisition.

“Permitted Intercompany
Investments” means Investments made by (a) a Loan Party to or in another Loan Party, (b) a Subsidiary that is not a Loan Party
to or in another Subsidiary that is not a Loan Party, (c) a Subsidiary that is not a Loan Party to or in a Loan Party, so long as, in
the case of a loan or advance, the parties thereto are party to the Intercompany Subordination Agreement, (d) loans or advances to an
employee of any Loan Party other than loans in an aggregate amount (for all Loan Parties) not to exceed $100,000 provided that such loans
are used to purchase Equity Interests in Borrower and at the time of the loan no Default or Event of Default exists, and (e) a Loan Party
to or in a Subsidiary that is not a Loan Party so long as (i) the aggregate amount of all such Investments made by the Loan Parties to
or in Subsidiaries that are not Loan Parties does not exceed $250,000 at any time outstanding, (ii) no Default or Event of Default has
occurred and is continuing either before or after giving effect to such Investment, and (iii) Liquidity is not less than $2,500,000 after
giving effect to such Investment.

“Permitted Investments”
means:

(a) Investments
in cash and Cash Equivalents;

(b) Investments
in negotiable instruments deposited or to be deposited for collection in the ordinary course of business;

(c) advances
made in connection with purchases of goods or services in the ordinary course of business;

(d) Investments
received in settlement of amounts due to any Loan Party or any of its Subsidiaries effected in the ordinary course of business or owing
to any Loan Party or any of its Subsidiaries as a result of Insolvency Proceedings involving an Account Debtor or upon the foreclosure
or enforcement of any Lien in favor of a Loan Party or its Subsidiaries;

(e) Investments
existing on the date hereof, as set forth on Schedule 7.2(e), but not any increase in the amount thereof as set forth in such Schedule
or any other modification of the terms thereof;

(f) Permitted
Intercompany Investments;

(g) [reserved];

(h) payroll,
commissions, travel and similar advances made to employees to cover matters that are expected at the time of such advances ultimately
to be treated as expenses of the Loan Parties or any of their Subsidiaries for accounting purposes and that are made in the ordinary course
of business;

(i) Investments
consisting of endorsements for collection or deposit in the ordinary course of business;

(j) security
deposits provided to landlords, utility companies and governmental authorities in the ordinary course of business;

long as no Default or Event of Default has occurred and is continuing or would result therefrom, any other Investments in an aggregate
amount, together with the aggregate amount of Investments made pursuant to clause (m) below, not to exceed $250,000 at any time outstanding;

(l) Permitted
Acquisitions; and

(m) Investments
held by a Person acquired in a Permitted Acquisition, provided that (i) such Investments were not made in contemplation of or in connection
with such Permitted Acquisition and were in existence on the date of such Permitted Acquisition, (ii) the aggregate amount of such Investments,
together with the aggregate amount of Investments made pursuant to clause (k) above, shall not exceed $250,000 at any time outstanding,
and (iii) such Investments are not to be amended, increased, renewed, extended or otherwise modified after the consummation of such Permitted
Acquisition in any manner that is adverse to the interests of the Agent.

“Permitted Liens”
means:

(a) Liens
securing the Obligations;

(b) Liens
for Taxes, assessments and governmental charges the payment of which is not required under Section 7.1(c)(ii);

(c) Liens
imposed by law, such as carriers’, warehousemen’s, mechanics’, materialmen’s and other similar Liens arising in
the ordinary course of business and securing obligations (other than Indebtedness for borrowed money) that are not overdue by more than
30 days or are being contested in good faith and by appropriate proceedings promptly initiated and diligently conducted, and a reserve
or other appropriate provision, if any, as shall be required by GAAP shall have been made therefor;

(d) Liens
described on Schedule 7.2(a), provided that any such Lien shall only secure the Indebtedness that it secures on the Effective Date and
any Permitted Refinancing Indebtedness in respect thereof;

(e) purchase
money Liens on equipment acquired or held by any Loan Party or any of its Subsidiaries in the ordinary course of its business to secure
Permitted Purchase Money Indebtedness so long as such Lien only (i) attaches to such property and (ii) secures the Indebtedness that was
incurred to acquire such property or any Permitted Refinancing Indebtedness in respect thereof;