Document:

EXHIBIT 4.12

 

December 23, 2014

 

Chanticleer Holdings, Inc.

11220 Elm Lane

Suite 203

Charlotte, NC 28277

Attention of Michael
Pruitt, CEO

 

Re: Letter of Agreement

 

Dear Mr. Pruitt:

 

This Letter of Agreement, including the Appendix attached hereto
(collectively, this “Agreement”), sets forth the terms and conditions of the engagement of Okapi Partners LLC (“Okapi”)
by Chanticleer Holdings, Inc. (the “Company”) to act as Information Agent in connection with the proposed “rights
offering” of subscription rights of the Company (the “Offer”). The term of this Agreement shall be the term of
the Offer, including any extensions thereof.

 

		(a)	Services. Okapi shall perform the services described
in the Fees & Services Schedule attached hereto as Appendix I (collectively, the “Services”).

 

		(b)	Fees. In consideration of Okapi’s performance
of the Services, the Company shall pay Okapi the amounts, and pursuant to the terms, set forth on the Fees & Services Schedule
attached hereto as Appendix I.

 

		(c)	Expenses. In connection with Okapi’s performance
of the Services, and in addition to the fees and charges discussed in paragraph (b) hereof, the Company agrees that it shall pay,
or advance sufficient funds, to Okapi (promptly after demand therefor by Okapi) for the following costs and expenses:

 

		·	Expenses incurred by Okapi incidental to the Offer and the provision of the Services, including the postage and freight charges
incurred in delivering Offer materials;

 

		·	Expenses incurred by Okapi in working with its agents or other parties involved in connection with the provision of the Services,
including charges for bank threshold lists, data processing, research, telephone directory assistance, facsimile transmissions
or other forms of electronic communication;

 

    	 

    	 

    

 

	Chanticleer Holdings, Inc.  	December 23, 2014	2

 

		·	Expenses incurred by Okapi at the Company’s request or for the Company’s convenience, including copying expenses,
expenses relating to the printing of additional and/or supplemental material and travel expenses of Okapi’s executives; and

 

		·	Any other fees and expenses authorized by the Company and resulting from extraordinary contingencies that arise during the
course of the Offer and the provision of the Services, including fees and expenses for advertising (including production and posting),
media relations, stock watch and analytical services.

 

		(d)	Compliance with Applicable Laws. The Company and Okapi hereby represent to one another that each shall use its best
efforts to comply with all applicable laws relating to the Offer, including, without limitation, the Securities Exchange Act of
1934, as amended, and the rules and regulations promulgated thereunder.

 

		(e)	Indemnification. The Company agrees to indemnify and hold harmless Okapi and its members, officers, directors, employees,
agents and affiliates against any and all claims, costs, damages, liabilities, judgments and expenses, including the fees, costs
and expenses of counsel retained by Okapi, which result from claims, actions, suits, subpoenas, demands or other proceedings brought
against or involving Okapi which directly relate to or arise out of Okapi’s performance of the Services (except for costs,
damages, liabilities, judgments or expenses which shall have been determined by a court of competent jurisdiction pursuant to a
final and nonappealable judgment to have directly resulted from Okapi’s gross negligence or intentional misconduct). In addition,
the prevailing party shall be entitled to reasonable attorneys’ fees and court costs in any action between the parties to
enforce the provisions of this Agreement, including the indemnification rights contained in this paragraph. The indemnity obligations
set forth in this paragraph shall survive the termination of this Agreement.

 

		(f)	Governing Law. This Agreement shall be governed by the substantive laws of the State of Delaware without regard to its
principles of conflicts of laws, and shall not be modified in any way, unless pursuant to a written agreement which has been executed
by each of the parties hereto. The parties agree that any and all disputes, controversies or claims arising out of or relating
to this Agreement (including any breach hereof) shall be subject to the jurisdiction of the federal and state courts in New York
County, New York and the parties hereby waive any defenses on the grounds of lack of personal jurisdiction of such courts, improper
venue or forum non conveniens.

 

		(g)	Exclusivity.  The Company agrees and acknowledges that Okapi shall be the sole Information Agent retained by the Company
in connection with the Offer, and that the Company shall refrain from engaging any other proxy solicitor or information agent to
render any Services, in a consultative capacity or otherwise, in relation to the Offer.

    	 

    	 

    

 

	Chanticleer Holdings, Inc.  	December 23, 2014	3

 

		(h)	Additional Services. In addition to the Services, the Company may from time to time request that Okapi provide it with
certain additional consulting or other services. The Company agrees that Okapi’s provision of such additional services shall
be governed by the terms of a separate agreement to be entered into by the parties at such time or times, and that the fees charged
in connection therewith shall be at Okapi’s then-current rates.

 

		(i)	Confidentiality. Okapi agrees to preserve the confidentiality of (i) all material nonpublic information provided by
the Company or its agents for Okapi’s use in fulfilling its obligations hereunder and (ii) any information developed by Okapi
based upon such material nonpublic information (collectively, “Confidential Information”). For purposes of this Agreement,
Confidential Information shall not be deemed to include any information which (w) is or becomes generally available to the public
in accordance with law other than as a result of a disclosure by Okapi or any of its officers, directors, employees, agents or
affiliates; (x) was available to Okapi on a nonconfidential basis and in accordance with law prior to its disclosure to Okapi by
the Company; (y) becomes available to Okapi on a nonconfidential basis and in accordance with law from a person other than the
Company or any of its officers, directors, employees, agents or affiliates who is not otherwise bound by a confidentiality agreement
with the Company or is not otherwise prohibited from transmitting such information to a third party; or(z) was independently and
lawfully developed by Okapi based on information described in clauses (w), (x) or (y) of this paragraph. The Company agrees that
all reports, documents and other work product provided to the Company by Okapi pursuant to the terms of this Agreement are for
the exclusive use of the Company and may not be disclosed to any other person or entity without the prior written consent of Okapi.
The confidentiality obligation set forth in this paragraph shall survive the termination of this Agreement.

 

		(j)	Severability. Any provision of the Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the
validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any jurisdiction.

 

		(k)	Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original,
and all of which taken together shall constitute but one agreement. Delivery of an executed signature page of this Agreement by
any electronic means that reproduces an image of the actual executed signature page shall be as effective as delivery of a manually
executed counterpart of this Agreement.

 

    	 

    	 

    

 

	Chanticleer Holdings, Inc.  	December 23, 2014	4

 

		(l)	Entire Agreement; Appendix. This Agreement constitutes the entire agreement and supersedes all prior agreements and
understandings, both written and oral, among the parties hereto with respect to the subject matter hereof. The Appendix to this
Agreement shall be deemed incorporated herein by reference as if fully set forth herein. This Agreement shall be binding upon and
inure to the benefit of the parties and their respective successors and assigns (by operation of law or otherwise).

 

[Signature Page Follows]

 

    	 

    	 

    

 

	Chanticleer Holdings, Inc.  	December 23, 2014	5

 

If the above is agreed to by you, please
execute and return a copy of this Agreement to the undersigned at Okapi Partners LLC, 437 Madison Avenue, 28th Floor,
New York, New York 10022.

 

	 	 	 
	 	 	Sincerely,
	 	 	 
	 	 	OKAPI PARTNERS LLC
	 	 	By:
	 	 	 
	 	 	 
	 	 	Bruce H. Goldfarb
	 	 	President and Chief Executive Officer

 

Agreed to and accepted as of the date first set forth above:

 

CHANTICLEER HOLDINGS, INC.

 

	By:	 	 
	 	 
	Name:	 	 
	Title:	 

 

    	 

    	 

    

 

	Chanticleer Holdings, Inc.  	December 23, 2014	6

 

		APPENDIX I

 

CHANTICLEER HOLDINGS, INC. 

FEES & SERVICES SCHEDULE

 

	BASE
    INFORMATION AGENT SERVICES	$7,500

	 	·	Advance review of Offer documents

	 	·	Strategic advice relating to Offer

	 	·	Assistance in preparation of advertisements and news releases, if any

	 	·	Dissemination of Offer documents to institutional investors and bank
	 	 	and broker community

	 	·	Communication with institutional investors and bank and broker
	 	 	community during Offer period

  

	ADDITIONAL
    INFORMATION AGENT SERVICES	TBD

		·	Placement
of advertisements and news releases, if requested

		·	Direct
telephone communication with registered stockholders/NOBOs

		$6.00	per completed call (incoming and outgoing)

 

PERFORMANCE FEES

	·	Payable upon completion of the Offering according to the following	TBD
	 	milestones:	 

 

		o	Upon achieving 75% of rights exercised: $7,500

 

		o	Upon achieving 100% of rights exercised: an additional $7,500

 

 

 NOTE: The foregoing fees are exclusive
of reimbursable expenses as described in paragraph (c) of this Agreement. In addition, the Company agrees to pay an additional
fee of $2,500 for any extension of the Offer.

 

FEE PAYMENT INSTRUCTIONS

 

The Company shall pay Okapi as follows:

		·	Upon execution of this Agreement, the Company shall pay Okapi $5,000, which amount is in consideration of Okapi’s commitment
to represent the Company and is non-refundable.

		·	On a monthly basis (if requested), any fees for Services or significant out-of-pocket expenses that have accrued.

		·	Upon completion of the Offer, the Company shall pay Okapi the sum of (i) $2,500, (ii) any fees for Additional Information Agent
services, (iii) all reimbursable expenses, (iv) any Performance Fees and (v) all other amounts due and owing pursuant to the terms
of this Agreement.

 

Okapi will send the Company an invoice for each of the foregoing
payments, which invoice will include wire transfer instructions.EXHIBIT 10.1

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

This FIRST AMENDMENT TO CREDIT AGREEMENT  (“Amendment”), is made effective as of January 9, 2015 (the “First Amendment Date”), by and between DATALINK CORPORATION, a Minnesota corporation, having its chief executive office located at 10050 Crosstown Circle, Suite 500, Eden Prairie, Minnesota  55344 (“Borrower), and CASTLE PINES CAPITAL LLC, a Delaware limited liability company, having its chief executive office located at 116 Inverness Drive East, Suite 375, Englewood, Colorado  80112 (“CPC”). Capitalized terms not defined herein have the meanings given to them in the Credit Agreement (as defined herein).

 

W I T N E S S E T H :

 

WHEREAS, CPC and Borrower are parties to that certain Credit Agreement dated as of July 17, 2013 (the “Existing Credit Agreement”, together with the amendment referred to herein, and as may further be amended, modified or amended and restated from time to time, “Credit Agreement”); and

 

WHEREAS, Borrower and CPC desire to increase the credit facility, modify certain covenants and extend the termination date, among other things;

 

NOW, THEREFORE, in consideration of the premises, the parties hereto hereby agree as follows:

 

SECTION ONE — Amendments.

 

A.                                    Section 1.1 of the Existing Credit Agreement is hereby amended by deleing the number “$40,000,000” in the third line of the first sentence thereof, and replacing same with the number “$50,000,000”.

 

B.                                    Section 1.2 of the Existing Credit Agreement is hereby amended by deleting the existing paragraph “(d)” and replacing it with the following new paragraph:

 

“(d)                           RESERVED.”

 

C.                                    Section 4.9 of the Existing Credit Agreement is hereby amended by deleting the number  “$20,000,000” in paragraph “(a), Tangible Net Worth”, and replacing it with the following new number:  “$30,000,000”.

 

D.                                    Section 4.9 of the Existing Credit Agreement is hereby amended by deleting the existing paragraph “(b), Maximum Funded Debt to EBITDA Ratio”, and replacing it with the following new paragraph:

 

“(b)                           RESERVED.”

 

E.                                     Section 4.9 of the Existing Credit Agreement is hereby amended by deleting the existing paragraph “(c), Minimum Quarterly Net Income”, and replacing it with the following new paragraph:

 

“(c)                           Minimum Quarterly Free Cash Flow.  Borrower will have Free Cash Flow of at least $5,000,000 at the end of each fiscal quarter for the trailing twelve month period then ended, commencing December 31, 2014, and continuing at the end of each fiscal quarter thereafter.

 

 

Free Cash Flow means, with respect to the trailing twelve months ending as of any period of measurement, an amount equal to:

 

Recurring Operating EBITDA

 

minus

 

(a) the sum of:

 

(i) unfinanced capital expenditures, plus

 

(ii) income taxes paid in cash by Borrower, plus

 

(iii) Distributions paid in cash during such period,

 

minus

 

(b) the sum of:

 

(i) interest expense paid in cash, plus

 

(ii) current maturities of long term debt, during such period.

 

Distribution means (a) any distribution, dividend or payment to any person on account of any equity interest of Borrower, (b) loans by Borrower to any holder of equity interests of Borrower, (c) any payment of management, consulting or similar fees payable by Borrower or any subsidiary of Borrower to any affiliate of Borrower, or (d) any redemption, purchase, retirement, defeasance, sinking fund or similar payment or any claim of rescission with respect to any equity interest of Borrower.

 

Net Income means, with respect to the trailing twelve months ending as of any period of measurement, net earnings (or net loss) after taxes of the Borrower during such period determined in accordance with GAAP.

 

Recurring Operating EBITDA means, with respect to the trailing twelve months ending as of any period of measurement, an amount equal to: Net Income, plus (a) the such of the following to the extent deducted in calculating such Net Income, the sum of: (i) interest expenses for such period, plus, (ii) the provision for federal, state, local and foreign income taxes payable by the Borrower for such period, plus (iii) depreciation and amortization expense for such period and plus (iv) other non-cash or non-recurring expenses of the Borrower reducing such Net Income (including without limitation non-cash stock-based compensation expense), and minus (b) all non-cash or non-recurring items increasing Net Income for such period.

 

F.                                      Exhibit A of the Existing Credit Agreement is hereby amended by deleting the existing definition “Termination Date”, and replacing it with the following new definition in the appropriate alphabetical sequence:

 

“Termination Date” means January 9, 2018.

 

SECTION TWO — Conditions to Effectiveness.  This Amendment shall be effective as of the First Amendment Date provided:

 

A.                                    CPC has received counterparts of this Amendment executed by the Borrower;

 

B.                                    CPC has received a secretary certificate containing certified copies of all Articles of Incorporation, the Borrower’s By-Laws each as amended to date, certificate of incumbency and resolutions of Borrower approving the terms of and performance under this Amendment.

 

C.                                    No event shall have occurred since December 31, 2013, which has a material adverse effect on the business, assets, revenues, financial condition or Collateral of Borrower, the ability of 

 

2

 

Borrower to perform Borrower’ payment obligations when due or to perform any other material obligation under the Credit Agreement; or any right, remedy or benefit of CPC under the Credit Agreement; and

 

D.                                    CPC has received such other certificates, resolutions, agreements, documents and information as requested by CPC and its counsel.

 

In addition, the effectiveness of this Amendment is conditioned upon the continuing accuracy of the representations and warranties set forth in Section Three hereof.

 

SECTION THREE — Representations and Warranties. In order to induce CPC to enter into this Amendment, Borrower represents and warrants to CPC that (i) the Credit Agreement, as amended, does remain the legal, valid, enforceable and binding obligation of Borrower, (ii) no Default has occurred and is continuing, (iii) all of the representations and warranties in the Credit Agreement are true and complete in all material respects on and as of the date hereof as if made on the date hereof (or, if any such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date), and (iv) Borrower have no claims, defenses, or offsets against CPC.

 

SECTION FOUR - Miscellaneous. Borrower waives notice of CPC’s acceptance of this amendment. All other terms and provisions of the Credit Agreement, to the extent not inconsistent with the foregoing, are ratified and remain unchanged and in full force and effect.

 

SECTION FIVE — Execution in Counterparts. This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an executed counterpart of a signature page to this Amendment by facsimile shall be effective as delivery of a manually executed counterpart of this Amendment.

 

SECTION SIX — Governing Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of Colorado (without giving effect to any provisions thereof relating to conflicts of law).

 

THIS AMENDMENT AND THE CREDIT AGREEMENT CONTAIN BINDING ARBITRATION, JURY WAIVER AND PUNITIVE DAMAGE WAIVER PROVISIONS.

 

(Signature Page(s) to Follow)

 

3

 

IN WITNESS WHEREOF, each of the undersigned has caused this Amendment to be duly executed and delivered by its proper and duly authorized officer as of the date first set above.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
DATALINK CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Gregory T. Barnum
    
	
 
    	
Name: 
    	
Gregory T. Barnum
    
	
 
    	
Title: 
    	
Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
ACKNOWLEDGED AND AGREED   TO:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
CASTLE PINES CAPITAL LLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Lloyd Squire
    	
 
    	
 
    	
 
    
	
Name: 
    	
Lloyd Squire
    	
 
    	
 
    	
 
    
	
Title: 
    	
Regional Manager

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