Document:

Exhibit 10.1

 

INCREASED COMMITMENT AGREEMENT, dated as of June 21, 2017 (this “Agreement”), is made and entered into by and among HILL INTERNATIONAL, INC., a Delaware corporation (the “Borrower”), SOCIÉTÉ GÉNÉRALE, as administrative agent and collateral agent for the Term Loan Lenders, U.S. Revolving Credit Lenders and the L/C issuers (in such capacities, the “Administrative Agent”, the “Term Collateral Agent” and the “U.S. Revolver Collateral Agent”), the Incremental Term Loan Lenders party hereto and, for purposes of Sections 7 and 8 hereof only, the additional U.S. Loan Parties signatory hereto.

 

RECITALS:

 

WHEREAS, reference is made to the Hill International, Inc. Credit Agreement dated as of September 26, 2014 (as amended by that certain First Amendment Agreement dated as of December 23, 2014, and that certain Second Amendment Agreement dated as of May 5, 2017, as same may be further amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and among the Borrower, the U.S. Loan Parties signatory thereto, the lenders signatory thereto, the Administrative Agent, the Term Collateral Agent, the U.S. Revolver Collateral Agent and TD Bank, N.A., as syndication agent (the “Syndication Agent”);

 

WHEREAS, it is intended that (a) the Borrower will obtain the Incremental Term Loan Commitments (as defined below) and (b) the proceeds of the borrowings under the Incremental Term Loans will be used to fund working capital (the transactions described in this paragraph, collectively, the “Transactions”);

 

WHEREAS, subject to the terms and conditions of the Credit Agreement, and pursuant to Section 2.19 of the Credit Agreement, the Borrower has requested that (a) the Incremental Term Loan Lenders provide Incremental Term Loan Commitments in an aggregate principal amount of $30,000,000.00 (the “Incremental Term Loan Commitments” and the loans thereunder, the “Incremental Term Loans”) and (b) the Credit Agreement be amended in the manner provided for herein; and

 

WHEREAS, the Incremental Term Loan Lenders are willing to provide the Incremental Term Loan Commitments to the Borrower on the First Incremental Amount Date (as defined below) and the parties hereto wish to amend the Credit Agreement on the terms and subject to the conditions set forth herein and in the Credit Agreement.

 

NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows:

 

Section 1                                              Defined Terms; Interpretation; Etc.  Capitalized terms used and not defined herein shall have the meanings assigned to such terms in the Credit Agreement.  This Agreement is an “Increased Commitment Agreement” and a “U.S. Loan Document”, each as defined in the Credit Agreement.

 

Section 2                                              Incremental Term Loans.  (a) Subject to the satisfaction of the conditions precedent set forth in Section 6 hereof, (i) each Incremental Term Loan Lender hereby assumes an Incremental Term Loan Commitment on the First Incremental Amount Date in an aggregate principal amount equal to the amount set forth opposite such Incremental Term Loan Lender’s name on Schedule I attached hereto, on the terms set forth herein and in the Credit Agreement (as amended hereby), and (ii) each Incremental Term Lender shall, severally and not jointly, make an Incremental Term Loan to the Borrower on the First Incremental Amount Date as contemplated in Section 2.19(a)(ii) of the Credit Agreement.  The Incremental Term Loan Commitments are “Incremental Term Loan Commitments” and

 

 

the Incremental Term Loans are “Incremental Term Loans”, in each case as contemplated by Section 2.19 of the Credit Agreement and the Incremental Term Loans shall be deemed to be “Term Loans” as defined in the Credit Agreement (as amended hereby) for all purposes of the Credit Agreement and the other U.S. Loan Documents and shall have terms and provisions identical to those applicable to the Term Loans under the Credit Agreement (the “Initial Term Loans”) except as otherwise set forth in this Agreement.

 

(b)                                 Each Incremental Term Loan Lender (i) confirms that a copy of the Credit Agreement and the other applicable U.S. Loan Documents, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement and make an Incremental Term Loan, have been made available to such Incremental Term Loan Lender; (ii) agrees that it will, independently and without reliance upon the Administrative Agent, Société Générale (together with its affiliates that it acts through as it deems appropriate) in its capacity as the lead arranger and bookrunner with respect to this Agreement (the “Incremental Term Loan Arranger”), or any other Lender or agent and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement or the other applicable U.S. Loan Documents, including this Agreement; (iii) appoints and authorizes the Administrative Agent and the Term Collateral Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other U.S. Loan Documents as are delegated to the Administrative Agent and the Term Collateral Agent, as the case may be, by the terms thereof, together with such powers as are reasonably incidental thereto; and (iv) acknowledges and agrees that upon the First Incremental Amount Date such Incremental Term Loan Lender shall be a “Lender”, a “Term Lender” and an “Incremental Term Loan Lender” under, and for all purposes of, the Credit Agreement and the other U.S. Loan Documents, and shall be subject to and bound by the terms thereof, and shall perform all the obligations of and shall have all rights of a Lender, a Term Lender and an Incremental Term Loan Lender thereunder.

 

Section 3                                              Proposed Borrowing.

 

This Agreement represents a notice of borrowing by the Borrower to borrow the Incremental Term Loans from the Incremental Term Loan Lenders as follows:

 

(a)                                 The date of the proposed borrowing is the First Incremental Amount Date is June 21, 2017.

 

(b)                                 The aggregate amount of the borrowing is $30,000,000.

 

(c)                                  The Incremental Term Loans are LIBOR Rate Loans with an initial interest period of one month.

 

(d)                                 The account into which each Incremental Term Loans are to be made is:                                       .

 

Hill International, Inc.

Account Number: 4289942702

SWIFT: TDOMCATTOR

WIRE: ABA #031101266

ACHABA #011103093

 

[Signature Page to Increased Commitment Agreement]

 

 

Section 4                                              Amendments to Credit Agreement

 

(a)                                 Section 1.1:  Defined Terms.

 

(i)                                     Section 1.1 of the Credit Agreement is hereby amended by adding the following definition in proper alphabetical sequence:

 

““First Incremental Amount Date” means June 21, 2017.”

 

(ii)                                  Clause (a) and (b) of the definition of “Applicable Margin” are hereby amended to read in their entirety as follows:

 

“(a) 4.75% in the case of any Term Loan that is a Base Rate Loan, (b) 5.75% in the case of any Term Loan that is a LIBOR Rate Loan,”

 

(iii)                               The first paragraph of the definition of “Repricing Premium” is hereby amended by deleting the language “made prior to the first anniversary of the Closing Date” in the first paragraph of such definition and replacing such language with the following:

 

“made prior to the six-month anniversary of the First Incremental Amount Date”.

 

(iv)                              The definition of Term Loan Maturity Date is amended to read in its entirety as follows:

 

““Term Loan Maturity Date” means the sixth anniversary of the First Incremental Amount Date”.

 

(b)                                 Section 2.6:  Repayment of Loans.  Section 2.6(b) of the Credit Agreement is hereby amended to read in its entirety as follows:

 

“(b) The Borrower promises to repay the outstanding principal amount of Term Loans (together with all accrued but unpaid interest) in installments on the dates and in the amounts set forth below (as adjusted from time to time pursuant to Sections 2.12):”

 

	
Date of Payment
    	
 
    	
Percentage of Aggregate
   Principal of the Term Loans
    
	
September 30, 2017
    	
 
    	
0.25%
    
	
December 31, 2017
    	
 
    	
0.25%
    
	
March 31, 2018
    	
 
    	
0.25%
    
	
June 30, 2018
    	
 
    	
0.25%
    
	
September 30, 2018
    	
 
    	
0.25%
    
	
December 31, 2018
    	
 
    	
0.25%
    
	
March 31, 2019
    	
 
    	
0.25%
    
	
June 30, 2019
    	
 
    	
0.25%
    
	
September 30, 2019
    	
 
    	
0.25%
    
	
December 31, 2019
    	
 
    	
0.25%
    
	
March 31, 2020
    	
 
    	
0.25%
    
	
June 30, 2020
    	
 
    	
0.25%
    
	
September 30, 2020
    	
 
    	
0.25%
    
	
December 31, 2020
    	
 
    	
0.25%
    
	
March 31, 2021
    	
 
    	
0.25%
    
	
June 30, 2021
    	
 
    	
0.25%
    
	
September 30, 2021
    	
 
    	
0.25%
    

 

[Signature Page to Increased Commitment Agreement]

 

 

	
Date of Payment
    	
 
    	
Percentage of Aggregate
   Principal of the Term Loans
    
	
December 31, 2021
    	
 
    	
0.25%
    
	
March 31, 2022
    	
 
    	
0.25%
    
	
June 30, 2022
    	
 
    	
0.25%
    
	
September 30, 2022
    	
 
    	
0.25%
    
	
December 31, 2022
    	
 
    	
0.25%
    
	
March 31, 2023
    	
 
    	
0.25%
    
	
Term Loan Maturity Date
    	
 
    	
Remainder”
    

 

(c)                                  Amendments to Section 2.8:  Mandatory Prepayments

 

(i)                                     Excess Cash Flow.  The parenthetical at Section 2.8(a)(y)(i) is hereby amended to read in its entirety as follows:

 

“2.00 to 1.00, the percentage set forth above shall be reduced to 25% or”.

 

Section 5                                              Original Issue Discount.  The Incremental Term Loans will be funded to the Borrower on the First Incremental Amount Date net of a discount equal to 1.00% of the principal amount thereof; provided that the Incremental Term Loan Lenders may determine that, in lieu of such Incremental Term Loans being issued at a discount, the Borrower shall pay upfront fees to the Incremental Term Loan Lenders in the aggregate amount of 1.00% of the principal amount of the Incremental Term Loans on the First Incremental Amount Date (or a combination of such discount and/or upfront fees not to exceed 1.00% in the aggregate may be required, as determined and notified by the Incremental Term Loan Lenders to the Borrower prior to the First Incremental Amount Date).

 

Section 6                                              Conditions Precedent.  This Agreement, and each Incremental Term Loan Lender’s Incremental Term Loan Commitment and its obligation to provide the Incremental Term Loans pursuant to this Agreement and the Credit Agreement, shall become effective as of the date on which the following conditions precedent are satisfied or waived (such date, the “Incremental Amendment Effective Date”):

 

(a)                                 No Default shall have occurred and be continuing before or after giving effect to the Incremental Term Loan Commitments, the making of the Incremental Term Loans and the use of proceeds thereof.

 

(b)                                 Both before and after giving effect to the consummation of the Incremental Term Loans, and the transactions related thereto, each of the representations and warranties contained in the Credit Agreement and in the other U.S. Loan Documents shall be true and correct in all material respects to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects on and as of such earlier date (provided that if a representation and warranty is qualified as to materiality, the materiality qualifier set forth above shall be disregarded with respect to such representation and warranty for purposes of this condition).

 

(c)                                  The Borrower shall have delivered or caused to be delivered any legal opinions or other documents reasonably requested by Administrative Agent in connection with this Agreement.

 

(d)                                 The Administrative Agent shall have received a counterpart of this Agreement duly executed by each Incremental Term Loan Lender, the Borrower and the other U.S. Loan Parties.

 

[Signature Page to Increased Commitment Agreement]

 

 

(e)                                  The Administrative Agent shall have received a certificate of a Responsible Officer stating that the conditions with respect to the Incremental Term Loan Commitments under Section 2.19 of the Credit Agreement have been satisfied.

 

(f)                                   The Consolidated Net Leverage Ratio (determined without using the proceeds of the Incremental Term Loans in any Cash Netting), on a pro forma basis upon giving effect to the establishment and the use of proceeds of the Incremental Term Loans, does not exceed 2.75:1.00.

 

(g)                                  The Incremental Term Loan Arranger and the Administrative Agent shall have received all fees due and payable thereto or to the Incremental Term Loan Lender and, to the extent invoiced, all other amounts due and payable pursuant to the Engagement Letter dated as of May 22, 2017 or the Credit Agreement.

 

The Administrative Agent shall notify the Borrower and the Lenders of the Incremental Amendment Effective Date, and such notice shall be conclusive and binding.

 

Section 7                                              Reaffirmation of Guarantees and Security Interests.

 

(a)                                 Each U.S. Loan Party hereby acknowledges that it has reviewed the terms and provisions of this Agreement and consents to the terms and conditions of this Agreement and the transactions contemplated hereby, including the extension of credit in the form of the Incremental Term Loans.  Each U.S. Loan Party hereby confirms that each U.S. Loan Document to which it is a party or otherwise bound and all U.S Collateral encumbered thereby will continue to guarantee or secure, as the case may be, to the fullest extent possible in accordance with the U.S. Loan Documents the payment and performance of all “U.S. Secured Obligations” under each of the U.S. Loan Documents to which is a party (in each case as such terms are defined in the applicable U.S. Loan Document) as amended hereby.

 

(b)                                 Each U.S. Loan Party acknowledges and agrees that any of the U.S. Loan Documents to which it is a party or otherwise bound shall continue in full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of this Agreement.

 

(c)                                  Each U.S. Loan Party (other than the Borrower) acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Agreement, such U.S. Loan Party is not required by the terms of the Credit Agreement or any other U.S. Loan Document to consent to the amendments to the Credit Agreement effected pursuant to this Agreement and (ii) nothing in the Credit Agreement, this Agreement or any other U.S. Loan Document shall be deemed to require the consent of such U.S. Loan Party to any future amendments to the Credit Agreement.

 

Section 8                                              Miscellaneous.

 

(a)                                 Notice.  For purposes of the Credit Agreement, the initial notice address of each Incremental Term Loan Lender shall be as set forth below its signature below.

 

(b)                                 Tax Forms.  Each Incremental Term Loan Lender shall have delivered to the Administrative Agent and the Borrower such forms, certificates or other evidence with respect to United States federal income tax withholding matters as such Incremental Term Loan Lender may be required to deliver to the Administrative Agent and the Borrower pursuant to Section 2.17(f) of the Credit Agreement.

 

[Signature Page to Increased Commitment Agreement]

 

 

(c)                                  Amendment, Modification and Waiver.  This Agreement may not be amended nor may any provision hereof be waived except pursuant to a writing signed by each of the parties hereto.

 

(d)                                 Entire Agreement.  This Agreement, the Credit Agreement (as amended hereby) and the other U.S. Loan Documents constitute the entire agreement among the parties with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof.

 

(e)                                  Governing Law.  THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAWS OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW IF SUCH PROVISIONS WOULD LEAD TO THE APPLICATION OF LAW OTHER THAN THE STATE OF NEW YORK.  The provisions of Sections 11.14 through 11.16 (inclusive) of the Credit Agreement shall be incorporated herein mutatis mutandis.

 

(f)                                   Severability.  Any provision of this Agreement being held illegal, invalid or unenforceable in any jurisdiction shall not affect any part of such provision not held illegal, invalid or unenforceable, any other provision of this Agreement or any part of such provision in any other jurisdiction.

 

(g)                                  Counterparts.  This Agreement may be executed in any number of counterparts and by different parties in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Signature pages may be detached from multiple separate counterparts and attached to a single counterpart. Delivery of an executed signature page of this Agreement by facsimile transmission or Electronic Transmission shall be as effective as delivery of a manually executed counterpart hereof.

 

(h)                                 Headings.  The section headings used in this Agreement are for convenience of reference only and are not to affect the construction hereof or be taken into consideration in the interpretation hereof.

 

(i)                                     Continued Effectiveness.  Notwithstanding anything contained herein, the terms of this Agreement are not intended to and do not serve to effect a novation as to the Credit Agreement.  The parties hereto expressly do not intend to extinguish the Credit Agreement.  Instead, it is the express intention of the parties hereto to reaffirm the indebtedness created under the Credit Agreement which is secured by the Collateral and the Liens and guarantees thereunder.  The Credit Agreement (as amended hereby) and each of the U.S. Loan Documents remain in full force and effect.

 

(j)                                    Concerning the Administrative Agent.  The Administrative Agent assumes no responsibility for the correctness of the recitals contained herein, and the Administrative Agent shall not be responsible or accountable in any way whatsoever for or with respect to the validity, execution or sufficiency of this Agreement and makes no representation with respect thereto.  In entering into this Agreement, the Administrative Agent shall be entitled to the benefit of every provision of the Credit Agreement relating to, without limitation, the rights, exculpations or conduct of, affecting the liability of or otherwise affording protection to the Administrative Agent.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers as of the day and year first above written.

 

[Signature Page to Increased Commitment Agreement]

 

 

	
 
    	
HILL   INTERNATIONAL, INC.,
    
	
 
    	
as Borrower
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ John Finelli
    
	
 
    	
 
    	
Name: John Finelli
    
	
 
    	
 
    	
Title: EVP/CFO
    

 

[Signature Page to Increased Commitment Agreement]

 

 

	
 
    	
SOCIÉTÉ GÉNÉRALE, as   Administrative Agent
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard Knowlton
    
	
 
    	
 
    	
Name: Richard Knowlton
    
	
 
    	
 
    	
Title: Managing   Director
    

 

[Signature Page to Increased Commitment Agreement]

 

 

	
 
    	
SOCIÉTÉ GÉNÉRALE, as an   Incremental Term Loan Lender
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Richard Knowlton
    
	
 
    	
 
    	
Name: Richard Knowlton
    
	
 
    	
 
    	
Title: Managing   Director
    

 

[Signature Page to Increased Commitment Agreement]

 

 

	
 
    	
With respect only to   Section 7 and Section 8:
    
	
 
    	
 
    
	
 
    	
MYLCM   SOLUTIONS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Raouf Guali
    
	
 
    	
 
    	
Name: Raouf Guali
    
	
 
    	
 
    	
Title: President and   COO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HILL INTERNATIONAL (NEW   ENGLAND), INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Raouf Guali
    
	
 
    	
 
    	
Name: Raouf Guali
    
	
 
    	
 
    	
Title: President and   COO
    

 

[Signature Page to Increased Commitment Agreement]

 

 

Schedule I

 

As of the First Incremental Amount Date:

 

	
Incremental Term Loan Lender
    	
 
    	
Incremental Term
   Loan Commitment
    	
 
    
	
SOCIÉTÉ GÉNÉRALE
    	
 
    	
$
    	
30,000,000
    	
 
    
	
Total:
    	
 
    	
$
    	
30,000,000ffg_ex101.htm

EXHIBIT 10.1

 

TERM SHEET

 

THIS TERM SHEET (hereinafter "Term Sheet") is entered into as of this day of June 19, 2017, by and among FIRST FOODS GROUP, INC., a Nevada corporation (the "Company" or "FIFG"), with offices at 720 Monroe Street, Suite E210, Hoboken, NJ 07030, and The Big Salad Franchise Company, LLC, a Michigan limited liability company ("TBS"), with offices at 18530 Mack Avenue, #555, Grosse Pointe Farms, Ml 48236 and John Bornoty ("Sole Member") where specifically referenced upon the following terms and conditions:

 

	
 
	1)	The Company will purchase 100% of the assets or member units of TBS, (or a combination to be determined by the Parties) including, but not limited to, all of its revenue streams (exclusive of cash in the bank which Sole Member shall retain), trademarks, logos, recipes, and intellectual property, in consideration of the payment of $850,000 in cash at Closing plus the Sole Member shall receive a 10% equity interest in a subsidiary to be formed by Company that will operate the TBS franchise program subsequent to Closing. (The $850,000 plus the 10% equity interest is collectively are the "Purchase Price"). TBS will pay its "ordinary" accounts payable prior to closing. "Ordinary Accounts Payable" will be defined by the Parties in the Definitive Agreements.
	
 
	
 
	
 

	
 
	2)	Upon Closing, Sole Member will be named Chief Executive Officer of the TBS subsidiary and Sole Member and Company will enter into an Executive Employment Agreement ("EEA") that includes an annual salary of $90,000.00, plus other benefits and bonuses in accordance with those provided to other officers of the Company but including and not limited to, travel and expenses to various sites, deferred compensation stock bonus plans and such other benefits as are customary for Chief Executives in the Company. The EEA shall have a 3-year term, with renewal options if approved by the Board of FIFG and Sole Member. If by the end of the due diligence period the Sole Member and Company have not reached a mutually acceptable EEA, a party or Sole Member may terminate their obligations under this Term Sheet which will then be of no force and effect.
	
 
	
 
	
 

	
 
	3)	The Parties hereto understand and acknowledge that, within 73 days following the Closing on the purchase, the Company will be required to file a "Super'' 8-K with the Securities and Exchange Commission which must include an audit report from an independent public accounting firm registered with the PCAOB covering the TBS Financial Statements (as defined below) for the years ending December 31, 2015 and 2016, and the unaudited TBS Financial Statements for the quarters ending March 31, 2017 and June 30, 2017. Any and all costs associated with PCAOB shall be borne by Company. In addition, Company shall deposit with Butzel Long, a professional corporation the attorney for TBS in their Escrow Account, Eight Thousand Five Hundred ($8,500.00) Dollars which escrow funds may be used by TBS or Company to pay for the PCAOB audit or review and to pay for expenses it incurs in this transaction including its attorney's fees should Company fail to close the transaction contemplated by this Term Sheet.
	
 
	
 
	
 

	
 
	4)	Company shall be responsible for costs associated with preparing TBS Financial Statements, except that TBS agrees that if needed it will prepare at its expense through its usual auditor, audited statements for the most recent quarter prior to the date of this Term Sheet.
	
 
	
 
	
 

	
 
	5)	This Term Sheet has been duly and validly authorized and executed and delivered on behalf of TBS and, where specified, by the Sole Member and except as otherwise provided in this Term Sheet, this Term Sheet constitutes a valid and binding agreement of TBS and the Sole Member enforceable in accordance with its terms and likewise this Term Sheet is binding on Company.

 
	 
	1
	

 
	 

 

	
 
	6)	The Board of Directors of the Company has authorized the execution and delivery of this Term Sheet by the Company and has approved this Term Sheet and the transactions contemplated hereby.
	
 
	
 
	
 

	
 
	7)	The Parties agree to prepare and negotiate in good faith "Definitive Agreements" customary in transactions of this type which will include the details of this transaction. Neither TBS nor Sole Member shall assume any liability after the Closing and Company agrees to defend, indemnify and hold Sole Member and TBS harmless from any claims of any kind or nature arising out of TBS except to the extent of a misrepresentation or fraud by TBS. The "Definitive Agreements" will also contain the representations and warranties of the Parties as is customary in transactions of this type.
	
 
	
 
	
 

	
 
	8)	Provided the Parties have agreed on Definitive Agreements, the Closing ("Closing") of the transactions contemplated by this Agreement shall occur (i) sixty (60) days from the date hereof ("Due Diligence Period") following the completion and written acceptance of the due diligence performed by the Company on TBS, which actions must be completed within the Due Diligence Period except as the Parties may otherwise agree in writing. The Closing shall take place at a mutually agreeable time and place and is anticipated to close by no later than sixty (60) days following the date hereof, (the "Closing Date"). Failure by Company to complete its due diligence within the Due Diligence Period may result in either Company or TBS terminating this Term Sheet. If Company is not reasonably satisfied with the results of its Due Diligence, Company may terminate the Term Sheet.
	
 
	
 
	
 

	
 
	9)	At the Closing, the Company, and TBS shall execute, acknowledge, and deliver (or shall ensure to be executed, acknowledged, and delivered), any and all certificates, opinions, financial statements, schedules, agreements, resolutions, rulings or other instruments required by this Term Sheet to be so delivered at or prior to the Closing, together with such other items as may be reasonably requested by the Parties hereto and their respective legal counsel in order to effectuate or evidence the transactions contemplated hereby provided Company has paid by wire transfer or certified check for the portion of the Purchase Price due in cash and delivered the certificate for the 10% equity interest described above.
	
 
	
 
	
 

	
 
	10)	This Term Sheet may be terminated during the Due Diligence Period by the Company, or TBS in the event of a breach by the other. Should Company terminate this Term Sheet or fail to Close, Company will forfeit the remainder of the $8,500.00 escrow, after deducting expenses as described in paragraph 3 above, to TBS. Upon such termination, the Parties hereto covenant to return all documents obtained during the Due Diligence Period. If this Term Sheet is terminated pursuant to this section, this Term Sheet shall be of no further force or effect as to any party hereto, and no obligation, right or liability shall arise hereunder except as otherwise provided. Anything contained herein to the contrary, notwithstanding, TBS agrees that from the date of signing this Term Sheet until terminated or expires or the contemplated transactions Close, TBS will not solicit or accept any offers to sell TBS or its assets, but TBS shall not be prevented from conducting its business in the normal course.
	
 
	
 
	
 

	
 
	11)	"Party" or "Parties" means Company and TBS.

 
	 
	2
	

 
	 

 

	
 
	12)	Each party hereto agrees with the other that, unless and until the transactions contemplated by this Term Sheet have been consummated, it and its representatives will hold in strict confidence all data and information obtained with respect to another party or any subsidiary thereof from any representative, officer, director or employee, or from any books or records or from personal inspection, of such other party, and shall not use such data or information or disclose the same to others, except (i) to the extent such data or information is published, is a matter of public knowledge, or is required by law to be published; or (ii) to the extent that such data or information must be used or disclosed in order to consummate the transactions contemplated by this Term Sheet. In the event of the termination of this Term Sheet, each party shall return to the other party all documents and other materials obtained by it or on its behalf and shall destroy all copies, digests, work papers, abstracts or other materials relating thereto, and each party will continue to comply with the confidentiality provisions set forth herein.
	
 
	
 
	
 

	
 
	13)	Except for the filing of Form 8k by Company with the SEC which 8 k is accessible by the public, unless required by applicable law or regulatory authority, neither of the Parties will issue any report, statement or press release to the general public, to the trade, to the general trade or trade press, or to any third party (other than its advisors and representatives in connection with the transactions contemplated hereby) or file any document, relating to this Term Sheet and the transactions contemplated hereby, except as may be mutually agreed by the Parties in writing. Copies of any such filings, public announcements or disclosures, including any announcements or disclosures mandated by law or regulatory authorities, shall be delivered to each party at least one (1) business day prior to the release thereof.
	
 
	
 
	
 

	
 
	14)	The laws of the State of Nevada shall apply to this Term Sheet irrespective of the conflict of laws statutes and venue and jurisdiction shall be in the courts of Nevada. Company and its officers and directors waive any claim that Nevada is not a convenient forum.
	
 
	
 
	
 

	
 
	15)	Paragraphs 12, 13, 14 and 15 shall survive the termination of this Term Sheet.

 
	 
	3
	

 
	 

 

IN WITNESS WHEREOF, the Parties hereto have caused this Term Sheet to be executed by their respective officers, duly authorized, as of the date first-above written.

 

	
 
	By:	/s/ Harold Kestenbaum	
	
 
	
Name:
	Harold Kestenbaum	 
	
 
	Its:	Chief Executive Officer	 

 

 

	
 
	
The Big Salad Franchise Company, LLC, 

a Michigan limited liability company
	
 

	
 
	 	 	 
	
 
		 	
	
 
	
 
	
 

	
 
	
By:
	
 

	
 
	
Name:
	
 

	
 
	
Its:
	
 

	
 
		
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

 

	 
	
4

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