Fourth Amendment to Loan and Security Agreement between Peninsula Bank Business Funding and Vaughan Foods, Inc. and Wild About Food – Oklahoma LLC
This amendment updates the existing Loan and Security Agreement between Peninsula Bank Business Funding (a division of The Private Bank of the Peninsula) and Vaughan Foods, Inc. and Wild About Food – Oklahoma LLC. The main change requires the borrowers to maintain a minimum EBITDA of $2,600,000 over the last twelve months, measured quarterly, starting with the quarter ending September 30, 2010. The amendment is effective once the bank receives the signed document, a $3,000 amendment fee, and any other required documents. All other terms of the original agreement remain in effect.
EXHIBIT 10.1
FOURTH AMENDMENT
TO
LOAN AND SECURITY AGREEMENT
This Fourth Amendment to Loan and Security Agreement is entered into as of August 9, 2010 (the Amendment), by and between PENINSULA BANK BUSINESS FUNDING, a division of THE PRIVATE BANK OF THE PENINSULA (Bank), and VAUGHAN FOODS, INC. and WILD ABOUT FOOD OKLAHOMA LLC ( each a Borrower and collectively Borrowers).
RECITALS
Borrowers and Bank are parties to that certain Loan and Security Agreement as amended from time to time including that certain First Amendment to Loan and Security Agreement dated as of September 30, 2009, that certain 2nd Amendment to Loan and Security Agreement dated as of April 26, 2010 and that certain 3rd Amendment to Loan and Security Agreement dated as of June 25, 2010, (collectively 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 6.9 EBITDA is amended in its entirety to read as follows:
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| Borrowers shall achieve an EBITDA of at least $2,600,000 for the last twelve (12) month period, measured quarterly, beginning with the quarter ending September 30, 2010, and continuing through the termination of the Agreement. |
2. Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall remain in full force and effect in accordance with its terms. 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, or the Security Agreement.
3. This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Amendment. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a .pdf format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or .pdf signature page were an original thereof. Notwithstanding the foregoing, Borrower shall deliver all original signed documents requested by Bank no later than ten (10) Business Days following the date of this Amendment.
4. As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following:
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| (a) this Amendment, duly executed by Borrowers; |
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| (b) an amendment fee of $3,000, plus all Bank Expenses incurred through the date of this Amendment; |
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| (c) such other documents and completion of such other matters, as Bank may reasonably deem necessary or appropriate. |
IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.
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| VAUGHAN FOODS, INC. |
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| By: /s/ Gene P. Jones |
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| Title: Secretary, Treasurer and Chief Financial Officer |
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| WILD ABOUT FOOD OKLAHOMA LLC |
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| By: /s/ Gene P. Jones |
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| Title: Secretary, Treasurer and Chief Financial Officer |
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| PENINSULA BANK BUSINESS FUNDING, |
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| By: /s/ Victor L. Ragni |
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| Title: Vice President |