Eleventh Amendment to Loan and Security Agreement dated as of August 9, 2018 by and between The RealReal, Inc. and Pacific Western Bank

Contract Categories: Business Finance - Loan Agreements
EX-10.14 22 d720814dex1014.htm EX-10.14 EX-10.14

Exhibit 10.14

ELEVENTH AMENDMENT

TO

LOAN AND SECURITY AGREEMENT

This Eleventh Amendment to Loan and Security Agreement (the “Amendment”) is made and entered into as of August 9, 2018 by and between PACIFIC WESTERN BANK, a California state chartered bank (“Bank”), and THE REALREAL, INC. (“Borrower”).

RECITALS

Borrower and Bank are parties to that certain Loan and Security Agreement, dated as of September 19, 2013 (the “Agreement”). The parties desire to amend the Agreement in accordance with the terms of this Amendment.

NOW, THEREFORE, the parties agree as follows:

 

1)

Section 2.1(c) of the Agreement is hereby amended and restated, as follows:

 

  (c)

Usage of Credit Card Services Under the Credit Card Line.

(i) Usage Period. Subject to and upon the terms and conditions of this Agreement, at any time from August 9, 2018 through the Credit Card Line Maturity Date, Borrower may use Credit Card Services in amounts and upon terms as restricted in Section 2.1(c)(ii) below.

(ii) Credit Card Services. Subject to and upon the terms and conditions of this Agreement, Borrower may request Credit Card Services from Bank. The aggregate amount of Credit Card Services outstanding at any time shall not exceed the Credit Card Line. The terms and conditions (including repayment and fees) of such Credit Card Services shall be subject to the terms and conditions of the Bank’s standard forms of applications and agreements for the Credit Card Service provided, each of which Borrower hereby agrees to execute.

(iii) Collateralization of Obligations Extending Beyond Maturity. If Borrower has not cash secured its obligations with respect to any Credit Card Services by the Credit Card Line Maturity Date, then, effective as of such date, the balance in any of Borrower’s deposit accounts held by Bank and the certificates of deposit or time deposit accounts issued by Bank in Borrower’s name (and any interest paid thereon or proceeds thereof, including any amounts payable upon the maturity or liquidation of such certificates or accounts) shall automatically secure such obligations to the extent of the then continuing or outstanding Credit Card Services. Borrower authorizes Bank to hold such balances in pledge and to decline to honor any drafts thereon or any requests by Borrower or any other Person to pay or otherwise transfer any part of such balances for so long as the applicable Credit Card Services are outstanding or continue.

 

The Real/Real, Inc. - 11th Amendment to LSA - Execution

 

2)

The following defined terms in Exhibit A to the Agreement are hereby amended and restated, as follows:

“Credit Card Line” means a Credit Extension of up to $1,500,000.

“Credit Card Line Maturity Date” means August 1, 2019.

“Credit Extension”, means each Termed-Out Non-Formula Advance, the Refinance Term Loan, Credit Card Services provided under the Credit Card Line, or any other extension of credit by Bank to or for the benefit of Borrower.

 

3)

Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof. Borrower ratifies and reaffirms the continuing effectiveness of all agreements entered into in connection with the Agreement.

 

4)

Borrower represents and warrants that the representations and warranties contained in the Agreement are true and correct as of the date of this Amendment.

 

5)

This Amendment may be executed in two or more counterparts, each of which shal1 be deemed an original, but all of which together shall constitute one instrument.

 

6)

As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following:

 

  a)

this Amendment, duly executed by Borrower;

 

  b)

payment for all Bank Expenses, including Bank’s expenses in the documentation of this Amendment and any related documents, and any UCC, good standing or intellectual property search or filing fees, which may be debited from any of Borrower’s accounts; and

 

  c)

such other documents and completion of such other matters, as Bank may reasonably deem necessary or appropriate.

Signature Page Follows

 

 

The Real/Real, Inc. - 11th Amendment to LSA - Execution

 

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IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.

 

THE REALREAL, INC.          PACIFIC WESTERN BANK
By:  

/s/ Matt Gustke

     By:  

/s/ Nader Maghsoudnia

Name: Matt Gustke       Name: Nader Maghsoudnia
Title: CFO       Title: Senior Vice President

Signature Page to Eleventh Amendment to Loan and Security Agreement

 

 

The Real/Real, Inc. - 11th Amendment to LSA - Execution

 

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