New York
|
0-14818
|
14-1541629
|
||
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
|
☐ |
Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
|
☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
☐ |
Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
|
☐ |
Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common shares, $0.01 par value per share
|
TWMC
|
NASDAQ Stock Market
|
Item 1.01. |
Entry into a Material Definitive Agreement.
|
Item 2.03. |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
|
Item 9.01.
|
Financial Statements and Exhibits.
|
Exhibit No.
|
Description
|
|
10.1
|
Dated: April 23, 2020
|
TRANS WORLD ENTERTAINMENT CORPORATION
|
||||
By:
|
/s/ Edwin Sapienza
|
||||
Name:
|
Edwin Sapienza
|
||||
Title:
|
Chief Financial Officer |
|
U.S. Small Business Administration
NOTE
|
SBA Loan #
|
95104670-04
|
||
SBA Loan Name
|
etailz Inc.
|
||
Date
|
4/10/2020
|
||
Loan Amount
|
$2,017,550.00
|
||
Interest Rate
|
1.00%
|
||
Borrower
|
etailz Inc.
|
||
Operating Company
|
|||
Lender
|
First Interstate Bank
|
1. |
In return for the Loan, Borrower promises to pay to the order of Lender the amount of
|
|
$2,017,550.00
|
Dollars,
|
interest on the unpaid principal balance, and all other amounts required by this Note.
|
2. |
DEFINITIONS:
|
3. |
PAYMENT TERMS:
|
a)
|
Payroll Costs (as defined in the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. 116-136 (the "Act") and SBA regulations);
|
b)
|
Any payment of interest on a covered mortgage obligation (as defined in the Act) (which shall not include any prepayment of or payment of principal on a covered mortgage obligation);
|
c) |
Any payment on a covered rent obligation (as defined in the Act);
|
d) |
Any covered utility payment (as defined in the Act).
|
4. |
DEFAULT:
|
|
A. |
Fails to do anything required by this Note and other Loan Documents;
|
|
B. |
Defaults on any other loan with Lender;
|
|
C. |
Does not preserve, or account to Lender’s satisfaction for, any of the Collateral or its proceeds;
|
|
D. |
Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender or SBA;
|
|
E. |
Makes, or anyone acting on their behalf makes, a materially false or misleading representation to Lender or SBA;
|
|
F. |
Defaults on any loan or agreement with another creditor, if Lender believes the default may materially affect Borrower’s ability to pay this Note;
|
|
G. |
Fails to pay any taxes when due;
|
|
H. |
Becomes the subject of a proceeding under any bankruptcy or insolvency law;
|
|
I. |
Has a receiver or liquidator appointed for any part of their business or property;
|
|
J. |
Makes an assignment for the benefit of creditors;
|
|
K. |
Has any adverse change in financial condition or business operation that Lender believes may materially affect Borrower’s ability to pay this Note;
|
|
L. |
Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender’s prior written consent; or
|
|
M. |
Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower’s ability to pay this Note.
|
5. |
LENDER’S RIGHTS IF THERE IS A DEFAULT:
|
|
A. |
Require immediate payment of all amounts owing under this Note;
|
|
B. |
Collect all amounts owing from any Borrower or Guarantor;
|
|
C. |
File suit and obtain judgment;
|
|
D. |
Take possession of any Collateral; or
|
|
E. |
Sell, lease, or otherwise dispose of, any Collateral at public or private sale, with or without advertisement.
|
6. |
LENDER’S GENERAL POWERS:
|
|
A. |
Bid on or buy the Collateral at its sale or the sale of another lienholder, at any price it chooses;
|
|
B. |
Incur expenses to collect amounts due under this Note, enforce the terms of this Note or any other Loan Document, and preserve or dispose of the Collateral. Among other things, the expenses may include payments for property taxes,
prior liens, insurance, appraisals, environmental remediation costs, and reasonable attorney’s fees and costs. If Lender incurs such expenses, it may demand immediate repayment from Borrower or add the expenses to the principal balance;
|
|
C. |
Release anyone obligated to pay this Note;
|
|
D. |
Compromise, release, renew, extend or substitute any of the Collateral; and
|
|
E. |
Take any action necessary to protect the Collateral or collect amounts owing on this Note.
|
7. |
WHEN FEDERAL LAW APPLIES:
|
8. |
SUCCESSORS AND ASSIGNS:
|
9. |
GENERAL PROVISIONS:
|
|
A. |
All individuals and entities signing this Note are jointly and severally liable.
|
|
B. |
Borrower waives all suretyship defenses.
|
|
C. |
Borrower must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect, or maintain Lender’s liens on Collateral.
|
|
D. |
Lender may exercise any of its rights separately or together, as many times and in any order it chooses. Lender may delay or forgo enforcing any of its rights without giving up any of them.
|
|
E. |
Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms of this Note.
|
|
F. |
If any part of this Note is unenforceable, all other parts remain in effect.
|
|
G. |
To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment, demand, protest, and notice of dishonor. Borrower also waives any defenses based upon any claim that Lender did
not obtain any guarantee; did not obtain, perfect, or maintain a lien upon Collateral; impaired Collateral; or did not obtain the fair market value of Collateral at a sale.
|
10. |
STATE-SPECIFIC PROVISIONS:
|
11. |
BORROWER’S NAME(S) AND SIGNATURE(S):
|
/s/ Brock Kowalchuk |
4/16/2020
|
|
Authorized Representative of Borrower
|
Date
|
|
Brock Kowalchuk
|
CFO, etailz
|
|
Printed Name
|
Title
|