UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): December 3, 2015

 

Synergy CHC Corp.

 

(Exact name of registrant as specified in its charter)

 

Nevada   000-55098   99-0379440
(State or other jurisdiction
of incorporation)
  (Commission
File Number)
  (IRS Employer
ID Number)

 

865 Spring Street, Westbrook, ME   04092
(Address of principal executive offices)   (Zip Code)

 

Registrant’s telephone number, including area code (615) 939-9004

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

[  ]  Written communications 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 communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 

 
 

 

Item 1.01. Entry into a Material Definitive Agreement.

 

Loan Amendment

 

In connection with our acquisition of Breakthrough Products, Inc. (“Breakthrough”) on November 12, 2015, and NomadChoice Pty Limited (trading as Flat Tummy Tea) (“Nomad”) on November 15, 2015, we entered into a First Amendment Agreement to Loan Agreement (the “First Amendment Agreement”) with a subsidiary of Knight Therapeutics Inc. (“Knight”) for a $5,500,000 (the “Loan”), as disclosed on our Current Report on Form 8-K filed November 18, 2015. The proceeds of the Loan were used to acquire Breakthrough and Nomad.

 

On December 3, 2015, we entered into an Amendment to First Amendment Agreement (the “Second Amendment Agreement”) with Knight pursuant to which we agreed to grant distribution rights to Knight for Breakthrough’s products. To satisfy this obligation, on December 3, 2015, we also entered into into an Amendment and Confirmation Agreement (the “Confirmation Agreement”) with Knight, Nomad and Breakthrough to amend the Distribution, License and Supply Agreement dated January 22, 2015 (the “Distribution Agreement”) between us and Knight to grant to Knight an exclusive license to commercialize any and all Nomad and Breakthrough products and appoint Knight as the exclusive distributor to offer and sell those products in Canada, Israel, Romania, Russia and each of the countries within Sub-Saharan Africa, which is the new “Territory” under the Distribution Agreement, as amended. Pursuant to the Second Amendment Agreement, Nomad will buy all Flat Tummy Tea products within the Territory for direct to consumer sales exclusively from Knight and/or its affiliates at cost of goods plus 60% of gross sales.

 

Breakthrough guaranteed our obligations under the Loan and secured that guarantee with a first priority security interest in all of its present and future personal property assets.

 

The foregoing descriptions of the Second Amendment Agreement and the Confirmation Agreement are not complete and are qualified in their entirety by reference to the Second Amendment Agreement and the Confirmation Agreement, which are filed as Exhibits 10.16 and 10.17, respectively, to this Current Report on Form 8-K, and are incorporated into this report by reference.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No.   Description
     
10.16  

Amendment to First Amendment to Loan Agreement, dated December 3, 2015, between Knight Therapeutics (Barbados) Inc. and Synergy CHC Corp., f/k/a Synergy Strips Corp. 

     
10.17   Amendment and Confirmation Agreement, dated December 3, 2015 among Knight Therapeutics (Barbados) Inc., NomadChoice Pty Ltd., Synergy CHC Corp., and Breakthrough Products, Inc.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    SYNERGY CHC CORP.
     
Date: December 9, 2015      /s/ Jack Ross
    Jack Ross
    President and Chief Executive Officer

 

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Exhibit 10.16  

 

AMENDMENT TO FIRST AMENDMENT AGREEMENT entered into as of the 3rd day of December, 2015 (the “ Amendment ”).

 

BETWEEN : KNIGHT THERAPEUTICS (BARBADOS) INC. , a corporation formed under the laws of Barbados;
   
  (hereinafter called the “ Lender ”)
   
AND : SYNERGY CHC CORP. , a corporation formed under the laws of the State of Nevada;
   
  (hereinafter called the “ Synergy ”)

 

WHEREAS Synergy (then known as Synergy Strips Corp.) and the Lender are parties to that certain loan agreement (as amended by the First Amendment, the “ Loan Agreement ”) made as of the 21 st day of January, 2015, pursuant to which the Lender has extended a loan to Synergy in the principal amount of Six Million United States Dollars (US$6,000,000) as amended by a first amendment to the loan agreement made as of November 12, 2015 (the “ First Amendment ”) pursuant to which the Lender has extended an additional loan to Synergy in the principal amount of Five Million Five Hundred Thousand United States Dollars (US$5,500,000) (the “ Additional Loan ”);

 

WHEREAS the Lender and Synergy desire to amend the First Amendment to, inter alia , modify the conditions precedent for the second tranche of the Additional Loan;

 

NOW, THEREFORE, IN CONSIDERATION of these presents and of the mutual covenants hereinafter contained, the parties have agreed as follows:

 

Article 1
interpretation

 

1.1 Capitalized Terms

 

In this Amendment, capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Loan Agreement.

 

Article 2
amendments

 

2.1 Amendments to the First Amendment

 

The Borrower and the Lender hereby agree to amend the First Agreement as follows:

 

2.1.1 Section 2.1.1 of the First Amendment is hereby amended by inserting the following definition:
     
    Amendment and Confirmation Agreement ” means that certain agreement among the Lender, Synergy, Nomad and Breakthrough by which Nomad and Breakthrough confirm that the terms of the distribution, license and supply agreement dated January 22, 2015 between Synergy and the Lender apply to them and by which the parties amend certain provisions of such distribution, license and supply agreement;

   

 
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  2.1.2 Section 2.1.1 of the First Amendment is hereby amended by deleting the definition of “Lender’s Nomad Distribution Agreement”.
     
  2.1.3 Section 3.2.5 of the First Amendment is hereby amended to replace “Lender’s Nomad Distribution Agreement” by “Amendment and Confirmation Agreement”.
     
  2.1.4 Article 3 of the First Amendment is hereby amended by adding the following:

 

3.5 Distribution Agreement

 

    The Lender, Nomad and Borrower shall enter into, execute and deliver a distribution agreement within thirty (30) days of the disbursement of the second tranche of the Additional Loan with the following terms and conditions:
     
  (a) Lender and/or its affiliates shall grant to Nomad non-exclusive distribution rights for “Flat Tummy Tea” products in the Territory for direct to consumer sales; and
     
  (b) Nomad shall buy its “Flat Tummy Tea” products in the Territory for direct to consumer sales under the distribution agreement on an exclusive basis from the Lender and/or its affiliates at cost of goods plus 60% of gross sales.

 

  2.1.5 From and after the date hereof, (i) all references in the First Amendment to “this First Amendment” shall mean the First Amendment as amended by this Amendment, and as may otherwise be amended, restated, supplemented or otherwise modified from time to time, and (ii) all references in the other Loan Documents to the “Loan Agreement” (or words of similar import) shall be deemed to be references to the Loan Agreement as amended by the First Amendment as amended by this Amendment, and as may otherwise be amended, restated, supplemented or otherwise modified from time to time. All references in any of the Loan Documents to the “Loan Documents” shall mean the Loan Documents as amended by this Amendment and as may otherwise be amended restated, supplemented or otherwise modified from time to time.
     
  2.1.6 Except as expressly amended by this Amendment, all other provisions of the First Amendment and the Transaction Documents not specifically amended hereby shall remain unchanged and in full force and effect.

 

 
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Article 3
MISCELLANEOUS

  

3.1 Further Assurances

 

Each of the Borrower and the Lender shall, from time to time hereafter and upon any reasonable request of the other party, execute and deliver such further agreements and documents and do all such other acts and things as may be necessary or appropriate to give effect to the foregoing.

 

3.2 Time of the Essence

 

Time shall be of the essence of this Amendment.

 

3.3 Severability

 

If any provision of this Amendment is found by final judgment of a court of competent jurisdiction to be invalid or unenforceable in whole or in part, such provision (or part thereof, as the case may be) shall be severable and such finding shall not affect the validity or enforceability of the remainder of such provision or of any other provision hereof.

 

3.4 Enurement

 

This Amendment shall enure to the benefit of and be binding upon the parties hereto and their permitted assigns.

 

3.5 Counterparts

 

This Amendment may be executed in one or more counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute one and the same instrument.

 

3.6 Paramountcy

 

In the event of any conflict or inconsistency between the terms and conditions of this Amendment and the terms and conditions of any other Transaction Document, including the Loan Agreement and the First Amendment, the terms and conditions of this Amendment shall prevail and be paramount to the extent of such conflict or inconsistency.

 

3.7 Governing Law

 

This Amendment will be governed by and construed in accordance with the laws of the Province of Quebec and the laws of Canada applicable therein.

 

3.8 Language

 

The parties acknowledge that they have requested that this Amendment and all ancillary documents be drawn up in the English language only. Les parties reconnaissent avoir exigé que cette convention ainsi que tous les documents y reliés soient rédigés en anglais seulement .

 

 
   

 

IN WITNESS WHEREOF the parties hereto have duly executed this Amendment as of the date and at the place first hereinabove set forth.

 

  KNIGHT THERAPEUTICS (BARBADOS) INC.
   
  By : /s/ Michael Loustric
  Name: Michael Loustric
  Title: President
     
  SYNERGY CHC CORP.
   
  B y : /s/ Jack Ross
  Name: Jack Ross
  Title: Chief Executive Officer

 

 
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Exhibit 10.17

 

AMENDMENT AND CONFIRMATION AGREEMENT

 

THIS AGREEMENT, effective December 3 rd , 2015, by and among KNIGHT THERAPEUTICS (BARBADOS) INC. (“ Knight ”), a corporation incorporated under the laws of Barbados, NOMAD CHOICE PTY LTD. ( Nomad ) , a corporation formed under the laws of Australia, and SYNERGY CHC CORP. ( Synergy ) , a corporation formed under the laws of the State of Nevada, and BREAKTHROUGH PRODUCTS, INC. (“ Breakthrough ”), a corporation formed under the laws of Delaware.

 

WHEREAS Synergy and Knight are parties to that certain distribution, license and supply agreement dated January 22, 2015 as may be amended, supplemented or restated from time to time (the “ DLS Agreement ”);

 

WHEREAS pursuant to the DLS Agreement, Synergy, for itself and on behalf of its Affiliates, has named Knight its exclusive distributor of Licensed Products in the Territory;

 

WHEREAS Synergy has acquired all of the shares of Nomad effective November 16, 2015 and, as and from that date, Nomad became an Affiliate;

 

WHEREAS Synergy has acquired all of the shares of Breakthrough effective November 12, 2015 and as and from that date, Breakthrough became an Affiliate;

 

WHEREAS the parties wish to confirm that the terms and conditions of the DLS Agreement apply to Nomad and Breakthrough effective from the dates each became an Affiliate;

 

WHEREAS the parties wish to confirm certain amendments to the DLS Agreement;

 

NOW THEREFORE in consideration of the mutual promises and covenants contained herein, the Parties, intending to be legally bound, agree as follows:

 

1 DEFINITIONS
   
1.1 Definitions . Unless the context otherwise indicates, defined terms used in this Agreement shall have the meaning ascribed thereto in the DLS Agreement.
   
2 GRANT OF RIGHTS
   
2.1 Each of Nomad and Breakthrough hereby confirms that it is subject to the terms and conditions of the DLS Agreement, as hereby amended, as if it were an original signatory thereto.
   
2.2 The DLS Agreement is hereby amended by replacing the definition of “Licensed Product” as follows:

 

“(i) with respect to Synergy means FocusFactor, FocusFactor Kids, Synergy Strips and all Improvements thereto, and (ii) with respect to Nomad, Breakthrough and any other Subsidiary of Synergy means all of the their present and future products (including with respect to Nomad “Flat Tummy Tea” and with respect to Breakthrough “urgentRX”)”.

 

 
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2.3 The DLS Agreement is hereby amended by replacing the definition of “Territory” as follows:

 

“Territory (i) means Canada, Israel, Romania, Russia and each of the countries within Sub-Saharan Africa.”

 

2.4 The DLS Agreement is hereby amended by deleting (i) Section 11 thereof and (ii) all references in the DLS Agreement to the defined term “Additional Territory”.
   
2.5 Section 9.3 of the DLS Agreement is deleted and replaced with the following:

 

“9.3 Termination of Knight . Knight may terminate this Agreement in whole or in part (including with respect to a particular Licensed Product and/or Territory or a particular Territory in respect of a particular Licensed Product) by notice in writing given not less than sixty (60) days prior to the intended termination date.”

 

3 OTHER PROVISIONS
   
3.1 Waiver . No failure to exercise and no delay in exercising any right or remedy hereunder shall operate as a waiver thereof. Any waiver granted hereunder shall only be applicable the specific acts covered thereby and shall not apply to any subsequent events, acts, or circumstances.
   
3.2 Severability . In the event any portion of this Agreement shall be held illegal, void or ineffective, the remaining portion hereof shall remain in full force and effect. If any of the terms or provisions of this Agreement are in conflict with any applicable statute or rule of law, then such terms or provisions shall be deemed inoperative to the extent that they may conflict therewith and shall be deemed to be modified to conform with such statute or rule of law.
   
3.3 Governing Law . This Agreement all disputes arising out of or relating to this Agreement, or the performance, enforcement, breach or termination hereof or thereof, and any remedies relating thereto, shall be construed, governed by and interpreted in accordance with the laws of the State of New York.
   
3.4 Counterparts . This Agreement may be executed in any number of counterparts, each of which shall be considered one and the same Agreement and shall become effective when a counterpart hereof has been signed by each of the Parties and delivered to the other Party.
   
3.5 Time of Essence . Time shall be of the essence of this Agreement and of each provision hereof.

 

 
 

 

In witness whereof , the parties have signed this Agreement.

 

  KNIGHT THERAPEUTICS
(BARBADOS) INC.
     
  By: /s/ Michael Loustric
  Name: Michael Loustric
  Title: President
     
  NOMAD CHOICE PTY LTD.
     
  By: /s/ Jack Ross
  Name: Jack Ross
  Title: Chief Executive Officer
     
  SYNERGY CHC CORP.
     
  By: /s/ Jack Ross
  Name: Jack Ross
  Title: Chief Executive Officer
     
  BREAKTHROUGH PRODUCTS, INC.
     
  By: /s/ Jack Ross
  Name: Jack Ross
  Title: Chief Executive Officer