On April 20, 2020, Crimson Wine Group, Ltd. (the “Company”) entered into a promissory note (the “Note”) evidencing an unsecured loan (the “Loan”) in the amount of $3,819,521.91 made to the Company under the Paycheck Protection Program (the “PPP”). The PPP was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and is administered by the U.S. Small Business Administration. The Loan to the Company is being made through American AgCredit, PCA (the “Lender”), the same lender under the Company’s existing credit facilities.

The term of the Note is two years and bears interest at a rate of 1% per annum. Payments of principal and interest on the loan will be deferred for the first six months of the term of the Loan. The Loan may be prepaid by the Company at any time prior to maturity with no prepayment penalties. The proceeds from the Loan may only be used for payroll costs (including benefits), interest on mortgage obligations, rent, utilities and interest on certain other debt obligations.

The Note contains customary events of default relating to, among other things, payment defaults, making materially false and misleading representations to the Lender or breaching the terms of the Loan documents. The occurrence of an event of default will result in an increase in the interest rate to 6% per annum and provides the Lender with customary remedies, including the right to require immediate payment of all amounts owed under the Note.

to the terms of the CARES Act and the PPP, the Company may apply to the Lender for forgiveness for the amount due on the Loan. The amount eligible for forgiveness is based on the amount of Loan proceeds used by the Company (during the eight-week period after the Lender makes the first disbursement of Loan proceeds) for the payment of certain covered costs, including payroll costs (including benefits), interest on mortgage obligations, rent and utilities, subject to certain limitations and reductions in accordance with the CARES Act and the PPP. No assurance can be given that the Company will obtain forgiveness of the Loan in whole or in part.

The foregoing description of the Note is not complete and is qualified in its entirety by reference to the full text of the Note, which is filed herewith as Exhibit 10.1, and incorporated herein by reference in its entirety.

The information set forth in Item 1.01 above is incorporated by reference into this Item 2.03.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Crimson Wine Group, Ltd Exhibit
EX-10.1 2 executedsbapppdocument.htm EXHIBIT 10.1 executedsbapppdocument DocuSign Envelope ID: F7BD87B5-1F95-4C2B-855B-514503F34A41 April 20,…
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About CRIMSON WINE GROUP, LTD. (OTCMKTS:CWGL)

Crimson Wine Group, Ltd. (Crimson) is engaged in producing and selling ultra-premium and luxury wines. The Company operates through two segments: Wholesale Sales and Direct to Consumer Sales. The Wholesale Sales segment includes all sales through a third party where prices are given at a wholesale rate whereas Direct to Consumer Sales segment includes retail sales in the tasting room, remote sites and at on-site events, Wine Club sales, and other sales made directly to the consumer without the use of an intermediary. The Company, through its subsidiaries, owns over four wineries, including Pine Ridge Vineyards, Archery Summit, Chamisal Vineyards and Seghesio Family Vineyards. In addition, Crimson owns Double Canyon Vineyards, which owns land in the Horse Heaven Hills of Washington’s Columbia Valley. Pine Ridge Vineyards owns acreage in approximately five Napa Valley appellations, including Stags Leap District, Rutherford, Oakville, Carneros and Howell Mountain.