THIRD AMENDMENT TO FACTORING AGREEMENT
Exhibit
10.39
THIRD
AMENDMENT TO FACTORING AGREEMENT
THIS
THIRD AMENDMENT TO FACTORING AGREEMENT is effective as of May 1,
2016, and between CLR ROASTERS LLC, a Florida limited liability
company (“Client”), and CRESTMARK BANK, a Michigan
banking corporation (“Crestmark”).
WITNESSETH
WHEREAS, Client and
Crestmark entered into a Factoring Agreement dated February 12,
2010 and Amendments dated April, 6, 2011 and February 1, 2013 (the
“Agreement"); and
WHEREAS, Client and
Crestmark desire to amend the terms of the Agreement as provided
herein.
NOW
THEREFORE, it is hereby agreed as follows:
1. The
terms of the Agreement are hereby amended as follows:
a.
Effective May 1, 2016, all new Receivables assigned to Crestmark
shall be “Client Risk Receivables” and no further
Credit Approvals will be provided by Crestmark, and there will be
no new Credit-Approved Receivables.
b.
Paragraph 6(a) is hereby deleted in its entirety and the following
is inserted in lieu thereof:
“(a) For your
services hereunder, we shall pay and you shall be entitled to
receive a factoring commission equal to three seven eighths of one
percent (0.875%) of the gross Invoice Amount of each Receivable for
annual sales volume up to Ten Million Dollars ($10,000,000); a
factoring commission equal to three quarters of one percent (0.75%)
of the gross Invoice Amount of each Receivable for annual sales
volume over Ten Million Dollars ($10,000,000), which commission
shall be due and payable to you on the date such Receivable arises,
even if we should fail to assign any such Receivable to you.
Factoring commissions shall be chargeable to our account with you.
You shall be entitled to receive a surcharge equal to at least one
percent (1.00%) of the gross Invoice Amount of all Receivables
arising out of our sales to Debtors-In-Possession or special
account relationships. The minimum factoring commission on each
invoice or credit memo shall be Five dollars
($5.00).”
c. The
first sentence in Paragraph 10 is hereby deleted in its entirety
and the following is inserted in lieu thereof:
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“This
Agreement shall continue in full force and effect until February
1, 2019 and shall be
deemed renewed from year to year thereafter unless we give you
notice in writing, by registered or certified mail, not less
than thirty (30) and not
more than sixty (60) days prior to the expiration of the
original term of
this Agreement (or any renewal term thereof) of our intention to
terminate this Agreement as of the end of such
term.”
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2. All
capitalized terms not otherwise defined herein shall have the
meanings ascribed to them in the Agreement.
3.
Except as above amended, the Agreement remains in full force and
effect and binding upon the Client without any
defenses, setoffs or counterclaims of any kind
whatsoever.
WITNESSES:
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CLR ROASTERS
LLC
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a
Florida limited liability company
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/s/
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By: /s/ Xxxxx Xxxxxxx
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Witness:
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By: Xxxxx
Xxxxxxx
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Its:
Manager
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/s/
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Witness:
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By: /s/ Xxxxxx X.
Xxxxxx
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By: Xxxxxxx X.
Xxxxxx
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/s/
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Its:
Manager
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Witness:
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/s/
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Witness:
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CRESTMARK
BANK
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a
Michigan banking corporation
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By:
/s/ Xxxxxx X.
Xxxxxx
By:
Xxxxxx X. Xxxxxx
Its:
Regional Executive
Vice President
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The undersigned, being the guarantors of the
obligations of Client to Crestmark under the term of that Guarantee
dated February 12, 2010 (the “Guarantee”), hereby
consent to the above Amendment to Factoring Agreement and reaffirm
the Guarantee and confirm that the Guarantee is in full force and
effect and binding upon the undersigned without any defenses,
setoffs or counterclaims of any kind whatsoever.
By:
/s/ Xxxxx
Xxxxxxx
Xxxxx
Xxxxxxx