JOINDER AND FIFTH AMENDMENT AND AGREEMENT TO CONSIGNMENT AGREEMENT

Exhibit 10.17

JOINDER AND FIFTH AMENDMENT AND AGREEMENT

TO CONSIGNMENT AGREEMENT

This JOINDER AND FIFTH AMENDMENT AND AGREEMENT TO CONSIGNMENT AGREEMENT (this “Amendment”), dated as of December 30, 2021, is entered into by and among HSBC BANK USA, NATIONAL ASSOCIATION, a bank organized under the laws of the United States with offices located at 000 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000 (“HSBC”), QUALITY GOLD, INC., an Ohio corporation with a place of business at 000 Xxxxxxx Xxxxxxxxx, Xxxxxxxxx, Xxxx 00000 (“Quality Gold”), MTM, INC., a Delaware corporation with a place of business at 000 Xxxx 00^xx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000-0000 (“MTM” and, together with Quality Gold, collectively, the “Companies” and each, individually, a “Company”); and L & L Group Holdings, LLC, an Ohio limited liability company (the “New Guarantor”).

W I T N E S S E T H:

WHEREAS, the Companies and HSBC entered into a Consignment Agreement, dated as of December 20, 2018 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Consignment Agreement”), pursuant to which HSBC extended a consignment facility and a forward contract facility to the Companies;

WHEREAS, New Guarantor is an affiliate of Quality Gold and is hereby joining (a) the Guaranty Agreement (as defined in the Consignment Agreement) and (b) that certain Security Agreement of the Guarantors, dated as of December 20, 2018, in favor of HSBC, which secures the payment and performance of the Guaranty Agreement (the “Guarantor Security Agreement”); and

WHEREAS, the Companies have requested, and HSBC has agreed, subject to the terms and conditions set forth in this Agreement, to modify certain provisions of the Consignment Agreement, all as more particularly set forth herein.

NOW, THEREFORE, in consideration of the premises and of the mutual promises hereinafter contained, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto hereby agree as follows:

1. Defined Terms. All capitalized terms used herein without definition shall have the definitions assigned to them in the Consignment Agreement.

2. Amendments to Consignment Agreement.

(a) Effective as of the date hereof, the definition of “Guarantors” set forth in Paragraph 1.30 of the Consignment Agreement is hereby amended in its entirety to read as follows:

“1.30. “Guarantors” means Gold Limited Liability Company, a California limited liability company; Gold/Gold/Gold, Inc., a California corporation; LogoArt LLC, a Kentucky limited liability company; QGM, LLC, an Ohio limited liability company; QG Refining, LLC, an Ohio limited liability company; J&M Group Holdings, Inc., a Delaware corporation; and L&L Group Holdings, LLC an Ohio limited liability company.”

(b) Effective as of the date hereof, the definition of “Guaranty Agreement” set forth in Paragraph 1.31 of the Consignment Agreement is hereby amended in its entirety to read as follows:

“1.31. “Guaranty Agreement” means that certain Guaranty Agreement of the Guarantors in favor of HSBC dated on or about the date hereof whereby the Guarantors have jointly and severally guaranteed the payment and performance of the Obligations, as the same may be amended, restated, supplemented or otherwise modified from time to time.”

(c) Effective as of the date hereof, the definition of “Security Agreement” set forth in Paragraph 1.59 of the Consignment Agreement is hereby amended in its entirety to read as follows:

“1.59. “Security Agreements” means (a) that certain Security Agreement of the Companies, dated on or about the date hereof, in favor of HSBC, which secures the payment and performance of the Obligations; and (b) that certain Security Agreement of the Guarantors, dated on or about the date hereof, in favor of HSBC, which secures the payment and performance of the Guaranty Agreement, in each case as the same may be amended, restated, supplemented or otherwise modified from time to time.”

(d) All necessary conforming changes to the Consignment Agreement occasioned by reason of this Amendment are hereby deemed to be made.

(e) All references to the “Consignment Agreement” in the Consignment Agreement shall from and after the effective date hereof refer to the Consignment Agreement, as amended hereby.

3. Joinder.

(a) All references in the Consignment Agreement or any other Transaction Document to a “Guarantor,” “Obligor,” or similar terms will include the New Guarantor and New Guarantor is hereby made a party to the Guaranty and the Guarantor Security Agreement.

(b) New Guarantor agrees that it is a “Guarantor” and is bound by the terms of the Consignment Agreement and the other Transaction Documents, jointly and severally, with each of the other Borrowers and Guarantors. New Guarantor hereby specifically guaranties the Obligations and assumes the duties and obligations of a Guarantor under the Consignment Agreement and the other Transaction Documents.

(c) New Guarantor hereby grants to HSBC a security interest in its Collateral (as such term is defined in the Guarantor Security Agreement) to secure the Secured Obligations (as such term is defined in the Guarantor Security Agreement). New Guarantor acknowledges that HSBC is authorized to file UCC-1 Financing Statements naming it as debtor and describing the collateral as all of its assets.

(d) New Guarantor represents and warrants to HSBC that the representations and warranties set forth in the Consignment Agreement and the other Transaction Documents applicable to a Guarantor are true and correct in all material respects as of the date hereof with respect to New Guarantor.

(e) The address for notices to New Guarantor under the Guaranty shall be 000 Xxxxxxx Xxxx, Xxxxxxxxx XX 00000, Attn: Xxxxxxx Xxxxxxxxxx.

- 2 -

4. Representations and Warranties. As a material inducement to HSBC to enter into this Amendment, the Companies hereby represent and warrant to HSBC (which representations and warranties, unless made expressly and solely as of the date hereof, shall survive the execution of this Amendment) that:

(a) The Companies and the New Guarantor have the requisite corporate power and authority to execute, deliver and perform this Amendment.

(b) The execution, delivery and performance by the Companies and the New Guarantor of the terms and provisions of this Amendment have been duly authorized by all requisite corporate action and will not violate any provision of law, any order of any court or other agency of government, the articles of organization and by-laws of the Companies or the New Guarantor or any indenture, agreement or other instrument to which either of the Companies or the New Guarantor is a party, or by which either of the Companies or the New Guarantor is bound, or be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under, or, except as may be provided by this Amendment, result in the creation or imposition of any lien, charge or encumbrance of any nature whatsoever upon any of the property or assets of the Companies or the New Guarantor pursuant to, any such indenture, agreement or other instrument.

(c) This Amendment and all other agreements executed by the Companies and the New Guarantor in connection herewith have been duly executed and delivered by the Companies and the New Guarantor and constitute legal, valid and binding obligations of the Companies and the New Guarantor, enforceable in accordance with their respective terms, subject to bankruptcy, insolvency, reorganization and other similar laws of general application affecting the rights of creditors generally.

(d) No Event of Default as defined in Paragraph 9.1 of the Consignment Agreement, and no event which, with the passage of time or the giving of notice, or both, would become such an Event of Default, has occurred and is continuing.

(e) The information included in any certification made by any Company regarding beneficial ownership required by the Beneficial Ownership Regulation (31 C.F.R. Sec. 1010.230), if applicable, is true and correct in all respects.

5. Conditions Precedent. The effectiveness of this Amendment is subject to the satisfaction (or waiver) of the following conditions precedent (in each case, in form and substance reasonably acceptable to HSBC):

(a) The representations and warranties set forth in Consignment Agreement shall be true and correct on and as of the date hereof.

(b) The Companies and the New Guarantor shall have executed and delivered to HSBC, or caused to be executed and delivered to HSBC, upon the execution of this Amendment, all agreements required by HSBC for the purpose of securing payment and performance of the Companies’ and the New Guarantor’s obligations hereunder, together with any other documents required by the terms hereof or thereof, all of which shall at all times remain in full force and effect.

- 3 -

(d) No Event of Default, nor any event which upon notice or lapse of time or both would constitute such an Event of Default, shall have occurred and be continuing.

6. Reaffirmation. Except as amended hereby, the Consignment Agreement shall remain in full force and effect and is in all respects hereby ratified and affirmed. The Companies, New Guarantor and HSBC hereby acknowledge and agree that the Consignment Agreement, as amended hereby, is secured by the Security Documents, which are in all respects hereby ratified and affirmed.

7. No Defenses. Each Company and New Guarantor hereby represents and warrants to, and covenants with HSBC that, as of the date hereof, it has no defense, offset, counterclaim or right of recoupment of any kind of nature whatsoever against HSBC with respect to any of the Obligations or the Consignment Agreement or any other Transaction Document, or any action previously taken or not taken by HSBC with respect thereto.

8. Discharge and General Release. As of the date hereof, each Company and the New Guarantor hereby acknowledges and confirms that it has no knowledge of any actions, causes of action, claims, demands, damages and liabilities of whatever kind or nature, in law or in equity, against HSBC’s officers, employees, representatives, agents, counsel or directors arising from any action by such Persons, or failure of such Persons to act under the Consignment Agreement and the other Transaction Documents on or prior to the date hereof. In consideration of the HSBC’s willingness to enter into this Amendment, each Company and the New Guarantor hereby releases and forever discharges HSBC, HSBC’s predecessors, successors, assigns, officers, managers, directors, employees, agents, attorneys, representatives, and affiliates (hereinafter all of the above collectively referred to as the “Release Group”), from any and all known claims, counterclaims, demands, damages, debts, suits, liabilities, actions and causes of action of any nature whatsoever, including, without limitation, all claims, demands, and causes of action for contribution and indemnity, whether arising at law or in equity, whether liability be direct or indirect, liquidated or unliquidated, whether absolute or contingent, foreseen or unforeseen, and whether or not heretofore asserted, which the Company may have or claim to have against any of the Release Group in any way related to or connected with the Transaction Documents including the transactions contemplated by this Amendment.

- 4 -

9. Fees and Expenses. The Companies covenant and agree to pay all out-of-pocket expenses, costs and charges incurred by HSBC (including reasonable and documented fees and disbursements of counsel) in connection with the preparation and implementation of this Amendment.

*The next page is a signature page*

- 5 -

IN WITNESS WHEREOF, the parties have executed this Joinder and Fifth Amendment and Agreement to Consignment Agreement as of the day and year first above written.

	QUALITY GOLD, INC.

	By:	/s/ Xxxxxxx Xxxxxxxxxx
	Name:	Xxxxxxx Xxxxxxxxxx
	Title:	Chief Executive Officer

	MTM, INC.

	By:	/s/ Xxxxxxx Xxxxxxxxxx
	Name:	Xxxxxxx Xxxxxxxxxx
	Title:	Vice President

	L & L GROUP HOLDINGS, INC.

	By:	/s/ Xxxxxxx Xxxxxxxxxx
	Name:	Xxxxxxx Xxxxxxxxxx
	Title:	President and Treasurer

	HSBC BANK USA, NATIONAL ASSOCIATION

	By:	/s/ Xxxxxx X. Xxxxxx
	Name:	Xxxxxx X. Xxxxxx
	Title:	Vice President

[Signature Page to Joinder and Fifth Amendment and Agreement to Consignment Agreement]

For good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, each of the undersigned Guarantors of the above-described Consignment Agreement pursuant to the Guaranty Agreement of the undersigned dated December 20, 2018 in favor of HSBC BANK USA, NATIONAL ASSOCIATION, a national banking association (“HSBC”), consents to the foregoing consent and amendment and reaffirms and ratifies the Guaranty Agreement and all agreements securing the Guaranty Agreement, all of which shall in all respects remain in full force and effect and each such Guarantor shall continue to guaranty any and all obligations, indebtedness and liabilities of QUALITY GOLD, INC., an Ohio corporation (“Quality Gold”), and MTM, INC., a Delaware corporation (“MTM”) (Quality Gold and MTM arc hereinafter collectively referred to as the “Companies”), to HSBC, including, without limitation, the indebtedness of the Companies to HSBC pursuant to the Consignment Agreement, as amended hereby.

	GOLD LIMITED LIABILITY COMPANY

	By:	/s/ Xxxxxxx Xxxxxxxxxx
	Name:	Xxxxxxx Xxxxxxxxxx
	Title:	Chief Financial Officer

	GOLD/GOLD/GOLD, INC.

	By:	/s/ Xxxxxxx Xxxxxxxxxx
	Name:	Xxxxxxx Xxxxxxxxxx
	Title:	Chief Financial Officer

	LOGOART LLC

	By:	/s/ Xxxxxxx Xxxxxxxxxx
	Name:	Xxxxxxx Xxxxxxxxxx
	Title:	President and Treasurer

	QGM, LLC

	By:	/s/ Xxxxxxx Xxxxxxxxxx
	Name:	Xxxxxxx Xxxxxxxxxx
	Title:	Manager

	QG REFINING, LLC

	By:	/s/ Xxxxxxx Xxxxxxxxxx
	Name:	Xxxxxxx Xxxxxxxxxx
	Title:	President and Treasurer

[Signature Page to Joinder and Fifth Amendment and Agreement to Consignment Agreement]

	J & M GROUP HOLDINGS, INC.

	By:	/s/ Xxxxxxx Xxxxxxxxxx
	Name:	Xxxxxxx Xxxxxxxxxx
	Title:	President and Secretary

[Signature Page to Joinder and Fifth Amendment and Agreement to Consignment Agreement]

Document Metadata

Table of Contents

JOINDER AND FIFTH AMENDMENT AND AGREEMENT TO CONSIGNMENT AGREEMENT

Document Metadata