Document:

employment
agreement

THIS EMPLOYMENT
AGREEMENT, made and entered into as of December 21st, 2016, by and between MassRoots, Inc. (the “Company”),
and George Robert “Bob” Pullar (the “Employee”).

R E C I T A L S

WHEREAS, the Company
desires to employ Employee in the capacity hereinafter stated, and Employee desires to enter into the employ of the Company in
such capacity, on the terms and conditions set forth herein.

WHEREAS, the parties
hereto acknowledge that Employee’s employment will be “at will”.

WHEREAS, the Company
and Employee desire to set forth in writing the employment relationship that exists between the Company and Employee.

NOW, THEREFORE,
in consideration of the mutual covenants and agreements set forth below, it is hereby covenanted and agreed by the Company and
Employee as follows:

1.             
Employment. The Company hereby employs Employee as the Chief Financial Officer (the “Position”) and
Employee hereby accepts such employment, upon the terms and subject to the conditions set forth in this Agreement.

2.             
Term of Employment. The period of Employee’s employment under this Agreement shall begin as of the date first above
written (the “Commencement Date”), and shall continue until the termination of employment pursuant to Section 7
below (the “Employment Period”).

 

3.             
Duties and Responsibilities. Employee shall, during the Employment Period, while Employee is employed by the Company, devote
Employee’s full and undivided attention, business energies and talents to fulfilling the duties of the Position, subject
to the direction and control of the Board of Directors of the Company (the “Board”) and the Chief Executive Officer
of the Company (the “CEO”), currently Isaac Dietrich. Notwithstanding the foregoing, Employee’s duties are subject
to change at the discretion of the Board and/or the CEO.

 

4.             
Location of Employment. Employee shall work primarily out of the MassRoots offices, with travel required as requested by
the Company.

 

5.             
Compensation. Subject to the terms and conditions of this Agreement, during the Employment Period:

 (a)            Employee
shall receive an annual salary of one-hundred thousand dollars ($100,000) (“Base Salary”) paid in accordance
with the Company’s normal payroll practices. The Base Salary shall adjust to one hundred and twenty-thousand dollars
($120,000) once the Company’s Earnings before interest, tax, depreciation, and amortization (“EBITDA”) is at
break-even for two (2) consecutive quarters. The Base Salary shall adjust to one hundred and fifty-thousand dollars ($150,000)
once the Company’s trailing twelve (12) month EBITDA equivalent to two hundred fifty-thousand dollars ($250,000). The Company
may make such deductions, withholdings or payments from sums payable to Employee hereunder which are required by law for taxes
and similar charges. The Company will review Employee’s base salary in accordance with the Company’s normal payroll
procedures.

 

    	 	

	 

    	 

    

6.             
Benefits.

(a)           
Vacation

(i)            
Employee shall be entitled to use up to as many days as permitted by management per year.

(b)          
Employee, when and to the extent eligible pursuant to the terms of any such benefit plan, shall be entitled to participate in
such employee benefit plans (e.g., health, dental and life insurance as well as 401k) as are offered by the Company to the Employees
of the Company generally as those plans may be amended from time to time in the sole discretion of the Company. Should Employee
elect to participate in any such employee benefit plan, Employee shall be responsible for any and all required employee premiums,
contributions, co-insurance and costs associated with said plans.

 

7.             
Termination of Employment.

(a)           
At will Employment. The parties hereto acknowledge that Employee’s employment hereunder is “at will”,
that is, Employee may be terminated by the Company or Employee may voluntarily resign, at any time with or without cause. Absent
exigent circumstances, (i) in the event that the Company wishes to terminate Employee’s employment hereunder, the Company
will provide 2 week’s notice prior to such termination and (ii) in the event that Employee wishes to terminate his
employment hereunder, Employee will provide 2 week’s notice prior to such termination. Failure of either party to provide
such notice shall not affect the timing or validity of the termination. However, if either party provides notice of termination,
Employer may in its sole discretion, at any time during the notice period decide to terminate Employee’s employment immediately
in exchange for a lump sum payment for the remainder of the 2 week notice period. The date upon which any party hereto terminates
Employee’s employment shall be referred to as the “Termination Date”.

 

Upon the Termination Date, and except as otherwise specifically
set forth herein, the Company shall have no obligation to make payments to Employee in accordance with the provisions of Section 5,
or, except as otherwise required by law, to provide the benefits described in Section 6, for periods after Employee’s
employment with the Company is terminated except for Base Salary accrued through the Termination Date and reimbursable expenses
incurred through such date.

 

(b)          
Death. Employee’s employment hereunder shall terminate upon the death of Employee. The Company shall have no obligation
to make payments to Employee in accordance with the provisions of Section 5, or, except as otherwise required by law or the
terms of any applicable benefit plan, to provide the benefits described in Section 6, for periods after the date of Employee’s
death except for Base Salary earned and accrued through the date of death, payable to Employee’s beneficiary, as Employee
shall have indicated in writing to the Company (or if no such beneficiary has been designated, to Employee’s estate) and
Reimbursable Expenses incurred through such date.

 

8.             
Non-Disclosure.

(a)           
Confidential Information. “Confidential Information” means all confidential and proprietary information of
the Company, its Affiliates (as defined below), its customers, its prospective customers and its suppliers (including insurance
carriers), whether or not such information is protected by statute, common law, proprietary rights, or otherwise, and including,
without limitation: names, addresses, contact persons and other information relating to the Company’s or any Affiliate’s
customers or prospective customers and their personnel and suppliers or prospective suppliers and their personnel; current, past,
potential or prospective commissions, premiums, prices, costs, profits, markets, products, services and innovations; business
expansion plans, including electronic business development; internal practices and procedures; trade secrets; technologies, developments,
inventions or improvements; and any other information relating to the business of the Company, its Affiliates, customers or suppliers.

(b)          
Disclosure of Confidential Information. As an Employee of the Company, Employee will learn and will have access to Confidential
Information. Employee acknowledges and agrees that the Company developed this Confidential Information at significant expense,
it is proprietary to the Company, and it is and shall remain the exclusive property of the Company. Employee further acknowledges
and agrees that the Confidential Information is highly valuable and proprietary to the Company and that the disclosure of any
such Confidential Information to third parties or the otherwise unauthorized use of the Confidential Information by Employee would
cause the Company serious and irreparable harm. Accordingly, Employee agrees not to, without the express, written consent of the
Company, while engaged by the Company as an Employee or after such engagement, disclose, copy, make any use of, or remove from
the Company’s premises the Confidential Information except as required in the performance of Employee’s duties and
responsibilities to the Company. Upon Employee’s termination as an employee of the Company, Employee shall immediately deliver
to the Company any Confidential Information and all copies thereof, whether in hard copy, computerized or other form, which are
in the possession or control of Employee.

    	 	
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(c)           
Disclosure of Customer and Advertiser Confidential Information. As an employee of the Company, Employee will also learn
and will have access to Confidential Information belonging to the Company’s customers and advertisers. Employee agrees not
to, without the express, written consent of the Company, either while engaged by the Company or thereafter, disclose, copy, make
any use of, or remove from the Company’s premises Confidential Information of the Company’s customers or suppliers
except as may be required in the performance of Employee’s duties and responsibilities as an employee of the Company.

 

For the purposes
of this Paragraph 8 and Paragraph 9, the following terms shall have the meanings set forth below:

 

“Affiliate”
shall mean with respect to any person, any other person, directly or indirectly, through one or more intermediaries, controlling,
controlled by, or under common control with, such first mentioned person. As used in this definition of Affiliate, the term “control”
(including “controlled by”, or “under common control with”) means the possession, directly or indirectly,
of the power to direct or cause the direction of the management and policies of a person, whether through ownership of voting
securities, as trustee, by contract, or otherwise.

“Business”
shall mean any business which engages in the set up, scheduling, management or planning of conferences or events, and any other
business in which the Company may engage during the term of Employee’s engagement.

9.             
Technology Ownership. Employee hereby assigns to the Company all inventions, discoveries, designs, trade secrets, formulae,
processes, methods, techniques, mask works, improvements, developments, concepts, computer programs, databases and works which
Employee may make or acquire during the term of his/her employment hereunder, whether or not during working hours and whether
made solely or jointly with others, that (1) are related to the Business of the Company at the time they are made or acquired,
or (2) are made using the equipment, supplies, facilities, or proprietary information of the Company, as well as all patents,
patent applications, copyrights, copyright registrations and all other intellectual property rights which cover, protect or are
embodied in any of the foregoing.

 

10.          
Remedies. Employee acknowledges that the Company may be irreparably injured by a violation of Sections 7, 8 or 9 and
agrees that the Company shall be entitled to an injunction restraining Employee from any actual or threatened breach of Sections 7,
8 or 9 or to any other appropriate equitable remedy without bond or other security being required. Each of the parties to this
Agreement will be entitled to enforce its rights under this Agreement, to recover damages and costs (including reasonable attorney’s
fees and expenses) caused by any breach of any provision of this Agreement and to exercise all other rights existing in its favor.

 

11.          
Severability; Enforceability. If any term or provision of this Agreement is held or deemed to be invalid or unenforceable,
in whole or in part, for any reason, such term or provision shall be ineffective to the extent of such invalidity or unenforceability
only, and the remaining terms and provisions of this Agreement shall continue in full force and effect. The Company and Employee
desire and intend that the restrictions be given effect to the maximum extent permitted by law and equity. They therefore respectfully
request that any restriction determined to be overbroad in any manner shall be interpreted or reformed to give that restriction
the maximum effect permissible by applicable law and equity, and Employee agrees to the enforcement of the restriction as so modified.

 

12.          
Waiver of Breach. The waiver by either the Company or Employee of a breach of any provision of this Agreement shall not
operate as or be deemed a waiver of any subsequent breach by either the Company or Employee.

 

13.          
Successors. This Agreement shall be binding on, and inure to the benefit of, the Company and its successors and assigns,
including any person acquiring, whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of
the Company’s assets and business.

 

    	 	
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14.          
Nonalienation. The interests of Employee under this Agreement are not subject to the claims of Employee’s creditors
other than the Company, and may not otherwise be voluntarily or involuntarily assigned, alienated or encumbered except to Employee’s
beneficiary or estate upon his/her death and except as otherwise required by law. Any attempted assignment in violation of this
provision shall be void.

 

15.          
Notices. Any notice given by a party under this Agreement shall be in writing and shall be deemed to be duly given (i) when
personally delivered, or (ii) upon delivery by Federal Express, United States Express Mail or similar overnight courier service
which provides evidence of delivery, or (iii) when delivered by facsimile transmission if a copy thereof is also delivered
in person or by overnight courier.

 

Notice to the Company shall be sufficient if given to:

Isaac Dietrich

isaac@massroots.com 

 

Notice to Employee will be sufficient if given to (Employee’s
email address):

Bob Pullar

bob@massroots.com

 

16.          
Amendment. This Agreement may not be amended or canceled except by mutual agreement of the parties in writing.

 

17.          
No Third Party Beneficiaries. Except for Section 7(b), nothing in this Agreement is intended, nor shall it be construed,
to confer any rights or benefits upon any person other than the parties hereto, and no other person shall have any rights or remedies
hereunder.

 

18.          
Complete Agreement. This Agreement contains the entire agreement between the parties hereto with respect to the transactions
contemplated herein and supersedes all previous negotiations, commitments, and writings relating to the subject matter hereof.

 

19.          
Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado,
without giving effect to the conflict of laws principles thereof. The parties consent to the exclusive jurisdiction of the state
and federal courts of Colorado for the purpose of any suit, action or other proceeding arising out of or otherwise related to
this Agreement, and expressly waive any and all objections they may have as to venue in any such courts.

 

20.          
Section Headings. The Section headings of this Agreement are for convenience of reference only and do not form
a part hereof and do not in any way modify, interpret, or construe the intentions of the parties.

 

21.          
Rules of Construction. Whenever the context so requires, the use of the singular shall be deemed to include the plural
and vice versa.

 

22.          
Counterparts. This Agreement may be executed in one or more counterparts (including by way of facsimile) and all such counterparts
shall constitute one and the same instrument.

    	 	
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23.          
Arbitration. If a dispute arises under this Agreement that cannot be resolved informally by the parties, a party to the
dispute shall invoke the procedures set forth in this Section 24. All disputes shall be solely and finally determined by
arbitration in by one arbitrator in accordance with the Commercial Arbitration Rules of the American Arbitration Association.
The arbitrator’s award shall be final and binding on the parties; provided, however, that the arbitrator shall base his/her
or his/her award on applicable law and judicial precedent, shall include in such award the findings of fact and conclusions of
law upon which the award is based, and shall not grant any remedy or relief that a court could not grant under applicable law.
Judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof; provided, however, that
nothing herein shall impair the Company’s right to seek equitable relief from a court of competent jurisdiction for a breach
or threatened breach of Section 8, 9 or 10 hereof.

 

24.          
Company Policies and Procedures. Employee agrees to be bound by any rules, policies, terms or conditions that the Company
has enacted and/or may enact or amend after the date hereof, including without limitation any rules or policies which may be set
forth in an employee handbook or manual which may be published by the Company. Said material in no way constitutes a promise or
guarantee of continued employment for any length of time or alters Employee’s status as an employee “at-will.”

 

[SIGNATURES ON FOLLOWING PAGE]

    	 	
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IN WITNESS WHEREOF,
Employee and the Company have executed this Employment Agreement as of the day and year first above written.

 

	 	 
	 	 
	 	 
	 	By:
                                         . 

         

        Name:
        Isaac Dietrich

         

        Title:
        Chief Executive Officer

	 	 

 

	 	 
	 	 
	 	 
	 	By:
                                         . 

        Employee
        Signature

	 	 

    	 	
6Exhibit 10.1

 

Execution Version

AMENDMENT NO. 4

TO

ASSET PURCHASE AGREEMENT

December 20, 2016

This Amendment No. 4 (this “Fourth Amendment”) to that certain Asset Purchase Agreement (as amended, the “Purchase Agreement”), dated as of October 18, 2016, by and among Cosi, Inc., a Delaware corporation, Hearthstone Partners, LLC, a Massachusetts limited liability company, Hearthstone Associates, LLC, a Massachusetts limited liability company, Xando Cosi Maryland, Inc., a Maryland corporation, and Cosi Sandwich Bar, Inc., a Delaware corporation (each a “Seller” and collectively, the “Sellers”), and LIMAB LLC, a Delaware limited liability company (the “Purchaser”).  Capitalized terms used and not defined herein shall have the meanings specified in the Purchase Agreement.

RECITALS

WHEREAS, Section 10.08 of the Purchase Agreement provides that the Purchase Agreement may be amended, modified or supplemented by written agreement of the Purchaser and the Sellers (the “Parties”);

WHEREAS, on October 28, 2016, the Parties entered into that certain Amendment No. 1 to Asset Purchase Agreement, which extended certain dates in the Purchase Agreement to reflect extensions of time contemplated in the Bidding Procedures approved by the Bankruptcy Court on October 20, 2016; and

WHEREAS, on November 17, 2016, the Parties entered into that certain Amendment No. 2 to Asset Purchase Agreement, which amended Section 8.01(c) of the Purchase Agreement to extend the diligence termination date to November 22, 2016;

WHEREAS, on November 22, 2016, the Parties entered into that certain Amendment No. 3 to Asset Purchase Agreement, which added a new Article IX.A that addresses certain franchise matters, which provisions are included in Section hereof, as modified in accordance with this Fourth Amendment; and

WHEREAS, the Parties desire to further amend the Purchase Agreement as set forth below.

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties do hereby agree to amend the Purchase Agreement as follows:

1.          Section 1.01 of the Purchase Agreement is amended to add the following new defined terms:

 

““Al Tayer” has the meaning set forth in Section 9.01A.”

““Cash Payment” has the meaning set forth in Section 2.05(b).”

““Chapter 11 Notice” has the meaning set forth in Section 5.18(a).”

““Dubai Franchise Agreement” has the meaning set forth in Section 9.01A.”

““Dubai Franchise Reserve” has the meaning set forth in Section 9.01A(a).”

““Fast Casual” has the meaning set forth in Section 9.01A.”

““FC Franchise Agreement” has the meaning set forth in Section 9.01A.”

““FC Franchise Reserve” has the meaning set forth in Section 9.01A(b).”

““FC Costs” has the meaning set forth in Section 9.01A(c).”

““Fourth Amendment” means that certain Amendment No. 4 to Asset Purchase Agreement, dated as of December 20, 2016.”

““Operating Agreement” means that certain Interim Operating Agreement, dated as of December 20, 2016, by and among Purchaser and the Sellers, and approved by the Bankruptcy Court.”

““Plan” has the meaning set forth in Section 5.18(a).”

““Transfer Date” means the effective date of the Operating Agreement.”

2.          Section 1.01 of the Purchase Agreement is amended to delete the following defined terms:

“Alternate Purchaser”

“Alternate Transaction”

“Auction”

“Break-Up Protection”

“Closing Working Capital”

“Sale Hearing”

3.          The definition of “Bidding Procedures Order” is amended to delete “and Break-Up Protection”.

4.          The definition of “Termination Date”, as amended, is amended to replace “December 14, 2016” with “June 30, 2017.”

 

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5.          Section 2.05(a)(iv) of the Purchase Agreement is revised to replace “$4,400,000” with “$4,650,000”.

6.          Section 2.05(b) of the Purchase Agreement is restated in its entirety as follows:

“(b)      On or before the Transfer Date, Purchaser shall pay, via wire transfer of immediately available funds to the accounts set forth on Schedule 1 to the Operating Agreement, an amount equal to $4,550,000  (the “Cash Payment”).  The Cash Payment shall be held by the Sellers in segregated accounts (including a separate account to be available exclusively for cure costs) as security for Purchaser’s obligations hereunder and shall not be subject to any claims, liens or interests whatsoever.  The Cash Payment, unless otherwise agreed to by the parties, shall be used solely to satisfy the obligation of Purchaser to pay the cash component of the Purchase Price pursuant to this Section 2.05 and Section 2.10(b), as adjusted pursuant to Section 2.05(a) and Article IX.A or, if Purchaser delivers the Chapter 11 Notice, in connection with Purchaser’s payment obligations under the Plan, and shall only be disbursed to the full control of the Sellers upon the earlier of (i) the Closing, (ii) the effective date of the Plan, (iii) the further order of the Bankruptcy Court or (iv) or as otherwise set forth in the Operating Agreement.

7.          Section 2.12 of the Purchase Agreement is restated in its entirety as follows:

“Section 2.12  Bankruptcy Auction Results.  The Parties acknowledge that in accordance with the Bidding Procedures Order (i) this Agreement was subject prior to 5:00 PM (EST) on November 28, 2016 to higher and better offers (the “Bid Deadline”) and a possible auction if other bids were received, (ii) except for the bid incorporated in this Agreement, no bids were received prior to the Bid Deadline, (iii) as contemplated by the Bidding Procedures Order, on November 29, 2016, the Purchaser was declared the Winning Bidder (as defined in the Bidding Procedures), (iv) the provisions of this Agreement are binding on the Sellers and the Purchaser and may not be terminated except in accordance with Section 8.01 (as amended by the Fourth Amendment), and (v) the Sellers and the Purchaser shall use commercially reasonable efforts to effect the Closing in accordance with the provisions hereof.”

8.          Article III of the Purchase Agreement is amended to restate the lead-in paragraph as follows:

“Each of the Sellers hereby jointly and severally represents and warrants to the Purchaser, as of the date hereof and as of the Transfer Date (except for representations and warranties that are made as of a specific date, which are made only as of such date), as follows:”

9.          Section 3.10(f) of the Purchase Agreement is amended to replace “No” in the first sentence with “Except as set forth in Section 3.10(f) of the Sellers’ Disclosure Schedule, no”.

10.        Section 5.03 of the Purchase Agreement is amended to replace the first three instances of “Closing” or “Closing Date”, as applicable, with “Transfer Date”.

11.        A new Section 5.18 is added to the Purchase Agreement reading as follows:

 

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“Section 5.18 Chapter 11 Plan.

(a)        The parties agree that Purchaser has the right to elect, by providing written notice to the Sellers at any time prior to the Closing (the “Chapter 11 Notice”), to direct that the transactions contemplated by this Agreement shall instead be effected pursuant to a plan under chapter 11 of the Bankruptcy Code (the “Plan”), containing (i) terms and provisions that result, on the effective date of such Plan, in substantially the same economic benefits for the Sellers and their estates with respect to the cash portion of the Purchase Price as otherwise contemplated by this Agreement by means of the use of a plan administrator or other mechanism to administer claims and use and distribute available cash, (ii) terms and provisions that result, on the effective date of such Plan, in substantially the same economic and control benefits for Purchaser with respect to the Purchased Assets and the Business, and (iii) such other plan terms and provisions requested by Purchaser, including terms and provisions designed to preserve net operating losses and other tax attributes of Cosi.  In addition the Plan shall contain such provisions set forth in the Operating Agreement and Section 5.18 hereof.

(b)        If a Chapter 11 Notice is provided, the Sellers shall use commercially reasonable efforts to prosecute and obtain confirmation and effectiveness of the Plan.

 (c)       Purchaser shall bear all reasonable, actually incurred, incremental, out-of-pocket costs incurred by the Sellers as a result of electing to proceed with the Plan, including the Sellers’ legal fees and expenses, whether or not such Plan is ultimately concluded.

(d)        At any time prior to the effectiveness of the Plan, Purchaser shall have the right, by providing written notice to the Sellers, to withdraw the Chapter 11 Notice and revert to the transactions contemplated by this Agreement.”

12.        Section 6.01(b) of the Purchase Agreement is amended to delete “after the Sale Hearing and”.

13.        Section 7.01(a)(i) of the Purchase Agreement is amended to replace the first two instances of “Closing Date” with “Transfer Date”.

14.        Section 7.02(a)(i) of the Purchase Agreement is amended to replace the first two instances of “Closing Date” with “Transfer Date”.

15.        Sections 7.02(f), 7.02(n), 8.01(e), 8.01(i), 8.01(j), 8.01(k) 8.02(b) and 8.02(c) of the Purchase Agreement are restated to read “[Reserved].”

16.        A new Section 8.01(n) is added to the Purchase Agreement reading as follows:

“(n)      by the Purchaser by written notice to the Sellers in accordance with Section 5.03.”

17.        A new Section 8.01(o) is added to the Purchase Agreement reading as follows:

“(o)      by the Purchaser, upon the effectiveness of the Plan.”

18.        Article IX.A of the Purchase Agreement is restated in its entirety as follows:

 

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“ARTICLE IX.A

CERTAIN FRANCHISE MATTERS

Section 9.01A  Provisions relating to certain Franchise Agreements.  Notwithstanding anything in this Agreement to the contrary, the following provisions will apply to (i) the Cosi, Inc. Master Development and Franchise Agreement, Territory of Costa Rica (MDFA) (including all addendums, amendments, supplemental written agreements and guarantees relating thereto, the “FC Franchise Agreement”) dated as of March 28, 2012 between Cosi, Inc. and Fast Casual S.A. (“Fast Casual”) and (ii) the International License Agreement (including all amendments, supplemental written agreements and guarantees relating thereto, the “Dubai Franchise Agreement”) in relation to Dubai with Al Tayer Group, LLC (including all related entities, “Al Tayer”):

(a)          On the Closing Date, a portion of the cash component of the Purchase Price equal to $525,000 (the “Dubai Franchise Reserve”) shall be withheld by the Purchaser and placed with a mutually acceptable third party custodian.  On or before December 17, 2017, if Al Tayer has extended the Dubai Franchise Agreement on a long term basis (or a new agreement has been executed with Al Tayer on substantially similar terms as the Dubai Franchise Agreement for the current location or for another location in Dubai) for at least five years on development and ten years on franchise operations, then 100% of the Dubai Franchise Reserve shall be paid to Sellers.  If the Dubai Franchise Agreement is extended on a long term basis (or a new agreement has been executed with Al Tayer on substantially similar terms as the Dubai Franchise Agreement for the current location or for another location in Dubai) but for a shorter time than five years development/ten years franchise operations, then a proportional portion of the Dubai Franchise Reserve shall be paid to Sellers (such proportion to be determined in good faith including appropriate allocation as between development and operations) and the remainder shall be paid to Purchaser or its designee.  If the Dubai Franchise Agreement has not been extended on a long term basis on or before December 17, 2017, then 100% of the Dubai Franchise Reserve shall be paid to Purchaser or its designee.  Purchaser and Sellers shall issue instructions to the third party custodian consistent with the provisions of this Section 9.01A(a).

(b)          If, prior to the Closing Date, Seller resolves the disputes related to the assignment of the Dubai Franchise Agreement on alternative terms acceptable to Seller and Purchaser, then Purchaser shall direct and facilitate the immediate release of the Dubai Franchise Reserve to Seller.

(c)          On the Closing Date, a portion of the cash component of the Purchase Price equal to $975,000 (the “FC Franchise Reserve”) shall be withheld by the Purchaser and placed with a mutually acceptable third party custodian.  On or before December 31, 2017, (1) Sellers shall receive from the FC Franchise Reserve an amount (but not greater than the FC Franchise Reserve) equal to (x) 3.5 times the amount of franchise royalty revenue actually paid by Fast Casual to Purchaser following the Closing Date in respect of revenues for the trailing twelve month period commencing December 1, 2016 and ending November 30, 2017 less (y) any out of pocket expenses incurred by the Purchaser in enforcing its rights under the FC Franchise Agreement and (2) the remainder (if any) of the FC Franchise Reserve shall be paid to Purchaser or its designee.  Purchaser and Sellers shall issue instructions to the third party custodian consistent with the provisions of this Section 9.01A(b).

 

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(d)         Sellers shall indemnify and hold harmless Purchaser and its Affiliates, representatives and agents for any and all costs, claims, expenses, losses and damages caused by any litigation or dispute relating to the FC Franchise Agreement or the assumption or rejection thereof (including any appeals) and the collection of franchise fees (collectively, “FC Costs”).  As security for such indemnity, Purchaser shall withhold on the Closing Date a portion of the cash component of the Purchase Price in an amount to be mutually agreed (based upon a reasonable estimate of the FC Costs to be incurred in connection with any litigation or mediation) by Sellers and Purchaser on or before the Closing Date.  On the one year anniversary of the Closing Date, any remaining amount of such security less a reasonable reserve for outstanding claims or expenses shall be paid to the Sellers.”  Any disputes as to the reasonableness of FC Costs shall be determined by the Bankruptcy Court.

(e)          Purchaser shall consult with and keep Sellers (or a representative of Sellers’ bankruptcy estate) informed of Purchaser’s negotiations with Fast Casual and Al Tayer.  It is the intent of Purchaser and Sellers that in its dealings with Fast Casual and Al Tayer, Purchaser shall work in good faith toward the objective of Fast Casual paying franchise fees in accordance with the FC Franchise Agreement and of Al Tayer extending the Dubai Franchise Agreement on a long term basis.

(f)          If, prior to the Closing Date, Seller resolves the disputes related to the assignment of the FC Franchise Agreement on terms acceptable to Seller and Purchaser, then Purchaser shall direct and facilitate the immediate release of the FC Franchise Reserve to Seller, inclusive of a release of the remaining security for the FC Costs indemnity.  ”

19.        Section 10.01 of the Purchase Agreement is amended to insert “Section 5.18(b)” immediately following “5.16(c)” in the first sentence.

20.        Section 10.02 of the Purchase Agreement is amended to add “, email” after “facsimile”.

21.        Section 10.02(a) of the Purchase Agreement is restated in its entirety as follows”

“(a) if to the Sellers:

Cosi, Inc.

294 Washington Street

Suite 510

Boston, Massachusetts 02108

Attention: Mark Demilio

Email:  mdemilio21@gmail.com

with a copy to:

Mirick, O’Connell, DeMallie & Lougee, LLP

1800 West Park Drive, Suite 400

Westborough, MA 01581

Attention: Joseph H. Baldiga

Facsimile: (508) 983-6232

 

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22.        No Other Amendments.  Except as expressly amended hereby, the Purchase Agreement is in all respects ratified and confirmed and all the terms, conditions, and provisions thereof shall remain in full force and effect.  This Amendment is limited precisely as written and shall not constitute an amendment to any other term or condition of the Purchase Agreement or any of the documents referred to therein.

23.        Other Miscellaneous Terms.  The provisions of Article X (General Provisions) of the Purchase Agreement shall apply mutatis mutandis to this Amendment, and to the Purchase Agreement as modified by this Amendment, taken together as a single agreement, reflecting the terms as modified hereby.

 

Signature Pages Follow.

 

7

IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by the undersigned as of the date first written above.

	 	
LIMAB LLC

	 
	 	 	 	 
	 	
By:

	
/s/Andrew Berger

	 
	 	
Name:

	Andrew Berger	 
	 	
Title:

	Manager	 

 

Signature Page to Amendment No. 4 to Asset Purchase Agreement

 

IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by the undersigned as of the date first written above.

	 	
COSI, INC.

	 
	 	 	 	 
	 	
By:

	
/s/Patrick Bennett

	 
	 	
Name:

	
Patrick Bennett

	 
	 	
Title:

	
Interim CEO & President

	 
	 	 	 	 
	 	
HEARTHSTONE PARTNERS, LLC

	 
	 	 	 	 
	 	
By:

	
/s/Patrick Bennett

	 
	 	
Name:

	
Patrick Bennett

	 
	 	
Title:

	
Interim CEO & President

	 
	 	 	 	 
	 	
HEARTHSTONE ASSOCIATES, LLC

	 
	 	 	 	 
	 	
By:

	
/s/Patrick Bennett

	 
	 	
Name:

	
Patrick Bennett

	 
	 	
Title:

	
Interim CEO & President

	 
	 	 	 	 
	 	
XANDO COSI MARYLAND, INC.

	 
	 	 	 	 
	 	
By:

	
/s/Patrick Bennett

	 
	 	
Name:

	
Patrick Bennett

	 
	 	
Title:

	
Interim CEO & President

	 
	 	 	 	 
	 	
COSI SANDWICH BAR, INC.

	 
	 	 	 	 
	 	
By:

	
/s/Patrick Bennett

	 
	 	
Name:

	
Patrick Bennett

	 
	 	
Title:

	
Interim CEO & President

	 

 

 

Signature Page to Amendment No. 4 to Asset Purchase Agreement

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