Document:

froz_ex1027.htm

EXHIBIT 10.27

NOTE PURCHASE AGREEMENT

 

THIS NOTE PURCHASE AGREEMENT (this "AGREEMENT") is made as of February 25, 2013 by and between Frozen Food Gift Group Inc. a Delaware corporation with principal offices at 7825 Fay Avenue, Suite 200, La Jolla, CA 92037 (the "Company") and Tangiers Investors, LP, a Delaware limited partnership with principal offices at 402 West Broadway, Suite 400, San Diego, California 92101 ("Purchaser"). As used herein, the term “Parties” shall be used to refer to the Company and Purchaser jointly.

 

WHEREAS:

 

	
  

	
A.

	
The Parties jointly warrant and represent that they have a pre-existing relationship prior to the date of this Agreement.

 

	
  

	
B.

	
Purchaser warrants and represents that it is sophisticated and experienced in acquiring the debt instruments issued by small early-stage companies that have not achieve profitability, positive cash flow or both.

 

	
  

	
C.

	
Purchaser warrants and represents that it is an “accredited investor,” as that term is defined in Rule 501 of the Securities Act of 1933, as amended (the “1933 Act”).

 

	
  

	
D.

	
Purchaser warrants and represents that prior to entering into this Agreement: it has received and completed its review of the Company’s corporate and financial statements as included in the filings and disclosures as listed for the Company with the Securities and Exchange Commission which has allowed Purchaser to make an informed investment decision with respect to purchase of that certain Convertible Promissory Note in the stated original principal amount of Twenty Five Thousand Dollars ($25,000.00) (the “Note”) attached as Exhibit A to this Agreement with a copy of that certain Action of the Board of Directors, dated February 25, 2013.

 

	
  

	
E.

	
The Purchaser acknowledges and agrees that it is acquiring the Note for investment purposes only and not with a view to a distribution.

 

	
  

	
F.

	
The Purchaser acknowledges and agrees that: (i) the Note is a “restricted security,” as that term is defined in the 1933 Act and (ii) no registration rights have been granted to Purchaser to register the Note.

 

NOW THEREFORE THE PARTIES AGREE AS FOLLOWS:

 

Section 1. SALE AND ISSUANCE OF THE NOTE. In consideration of the Company’s receipt of the sum of Twenty Five Thousand Dollars ($25,000.00) at Closing (as defined in Section 2.1), the Company shall sell to the Purchaser, and the Purchaser shall purchase from the Company (the “Issuance”) the Note upon the terms set forth in this Agreement substantially in the form of Exhibit A, attached hereto. In addition, a copy of that certain Action of the Board of Directors, dated February 25, 2013 (the “Action of the Board of Directors”) is attached to Exhibit A, attached hereto.

 

  

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Section 2. THE CLOSING.

 

2.1. PLACE OF CLOSING AND PROCEDURE AT CLOSING. The closing of the issuance of the Note to the Purchaser (the "Closing") shall take place, simultaneously with and upon the satisfaction of the following conditions:

 

(1) the Company’s execution and delivery to the Purchaser, the following: (A) an executed copy of this Agreement; (B) the Note; (C) a signed copy of the Irrevocable Instructions to the Transfer Agent; and (D) the signed board resolution.

 

(2) the Purchaser’s execution and delivery to the Company, an executed copy of this Agreement and within 24 hours thereafter, the wire transfer of the Purchase Price to the Company in accordance with the wire transfer and other instructions for the wire transfer of the Purchase Price by the Purchaser no later than one (1) business days prior to the Closing with the Purchase Price to be remitted and delivered as follows: the sum of Twenty Five Thousand Dollars ($25,000.00) shall be remitted and delivered to the Company.

 

Section 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

 

The Company hereby represents and warrants to the Purchaser as follows:

 

3.1. ORGANIZATION. The Company is duly organized, validly existing and in good standing under the laws of the State of California and is qualified to conduct its business as a foreign corporation in each jurisdiction where the failure to be so qualified would have a material adverse effect on the Company.

 

3.2. AUTHORIZATION OF AGREEMENT, ETC. The execution, delivery and performance by the Company of this Agreement, the Note, and each other document or instrument contemplated hereby or thereby (collectively, the "Financing Documents") have been duly authorized by all requisite corporate action by the Company; and this Agreement and Note have been duly executed and delivered by the Company. Each of the Financing Documents, when executed and delivered by the Company, constitutes the valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws affecting creditors' rights and remedies generally, and subject as to enforceability to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

  

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Section 4. REPRESENTATIONS AND WARRANTIES OF THE PURCHASER.

 

The Purchaser hereby represents and warrants to the Company as follows:

 

4.1. AUTHORIZATION OF THE DOCUMENTS. Purchaser has all requisite power and authority (corporate or otherwise) to execute, deliver and perform the Financing Documents to which it is a party and the transactions contemplated thereby, and the execution, delivery and performance by such Purchaser of the Financing Documents to which it is a party have been duly authorized by all requisite action by such Purchaser and each such Financing Document, when executed and delivered by the Purchaser, constitutes a valid and binding obligation of such Purchaser, enforceable against such Purchaser in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws affecting creditors' rights and remedies generally, and subject, as to enforceability, to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

 

4.2. INVESTMENT REPRESENTATIONS. The Purchaser warrants and represents that:

 

	
  

	
(a)

	
the Purchaser is an accredited investor (as that term is defined in Rule 501(a)(1) of Regulation D of the Securities Act of 1933, as amended (the “1933 Act”);

 

	
  

	
(b)

	
the Purchaser is sophisticated and experienced in acquiring the securities of small public companies;

 

	
  

	
(c)

	
the Purchaser has reviewed the Company’s Annual Report as filed on Form 10-K for each the fiscal year ending December 31, 2011 together with the audited financial statements contained therein;

 

	
  

	
(d)

	
the Purchaser has had sufficient opportunity to review and evaluate the risks and uncertainties associated with the purchase of the Company’s securities;

 

	
  

	
(e)

	
the Purchaser is acquiring the Note from the Company for investment purposes only and not with a view to a distribution.

 

4.3 RESTRICTED SECURITY. Purchaser understands and acknowledges that the Note has not been, and when issued will not be, registered with the Securities and Exchange Commission. Purchaser warrants and represents that it has fully reviewed the restricted securities legend and the terms thereof with its financial, legal, investment, and business advisors and that it has not relied upon the Company or any other person for any advice in connection with the purchase of the Note, this Agreement, or both of them.

 

4.4 LEGAL COUNSEL. Purchaser has consulted with its own independent legal, tax, investment, and other advisors of its own choosing prior to entering into this Agreement.

 

4.5 ABSENCE OF REGISTRATION RIGHTS. Purchaser understands and agrees that it is not acquiring and has not been granted any registration rights with respect to the Note. The Note is a restricted security and the Purchaser understands that there is no trading market for the Note and no such market will likely ever develop.

 

  

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Section 5. BROKERS AND FINDERS.

 

The Company shall not be obligated to pay any commission, brokerage fee or finder's fee based on any alleged agreement or understanding between the Purchaser and a third person in respect of the transactions contemplated hereby. The Purchaser hereby agrees to indemnify the Company against any claim by any third person for any commission, brokerage or finder's fee or other payment with respect to this Agreement or the transactions contemplated hereby based on any alleged agreement or understanding between the Purchaser and such third person, whether express or implied from the actions of the Purchaser.

 

Section 6. SUCCESSORS AND ASSIGNS.

 

This Agreement shall bind and inure to the benefit of the Company, the Purchaser and their respective successors and assigns.

 

Section 7. ENTIRE AGREEMENT.

 

This Agreement and the other writings and agreements referred to in this Agreement or delivered pursuant to this Agreement contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings among the parties with respect thereto.

 

Section 8. NOTICES.

 

All notices, demands and requests of any kind to be delivered to any party in connection with this Agreement shall be in writing and shall be deemed to have been duly given if personally delivered or if sent by an internationally-recognized overnight courier or by registered or certified mail, return receipt requested and postage prepaid to the address of each party listed on the first page of this Agreement or to such other address as the party to whom notice is to be given may have furnished to the other parties to this Agreement in writing in accordance with the provisions of this Section. Any such notice or communication shall be deemed to have been received (i) in the case of personal delivery, on the date of such delivery, (ii) in the case of an internationally-recognized overnight courier, on the next business day after the date when sent and (iii) in the case of mailing, on the third business day following that on which the piece of mail containing such communication is posted.

 

Section 9. AMENDMENTS.

 

This Agreement may not be modified or amended, or any of the provisions of this Agreement waived, except by written agreement of the Company and the Purchaser.

 

Section 10. ATTORNEYS’ FEES.

 

In the event of a dispute between the parties concerning the enforcement or interpretation of this Agreement, the prevailing party in such dispute, whether by legal proceedings or otherwise, shall be reimbursed immediately for the reasonably incurred attorneys' fees and other costs and expenses by the other parties to the dispute.

 

  

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Section 11. GOVERNING LAW AND ARBITRATION.

 

(A) All questions concerning the construction, interpretation and validity of this Agreement shall be governed by and construed and enforced in accordance with the domestic laws of the State of California without giving effect to any choice or conflict of law provision or rule (whether in the State of California or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of California. In furtherance of the foregoing, the internal law of the State of California will control the interpretation and construction of this Agreement, even if under such jurisdiction's choice of law or conflict of law analysis, the substantive law of some other jurisdiction would ordinarily or necessarily apply.

 

Section 12. CAPTIONS AND EXHIBIT A.

 

The captions by which the sections and subsections of this Agreement are identified are for convenience only, and shall have no effect whatsoever upon its interpretation. Exhibit A is attached hereto and each of the attachments listed in Exhibit A are each with Exhibit A incorporated by reference herein.

 

Section 13. SEVERANCE.

 

If any provision of this Agreement is held to be illegal or invalid by a court of competent jurisdiction, such provision shall be deemed to be severed and deleted; and neither such provision, nor its severance and deletion, shall affect the validity of the remaining provisions.

 

Section 14. COUNTERPARTS.

 

This Agreement may be executed in any number of counterparts, and each such counterpart of this Agreement shall be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement. Facsimile counterpart signatures to this Agreement shall be acceptable and binding.

 

 

[The remainder of this page has been left intentionally blank.]

 

  

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IN WITNESS WHEREOF, each of the undersigned has duly executed this Note Purchase Agreement as of the date first written above.

 

	 	FOR THE COMPANY:	 
	 	 	 
	 	Frozen Food Gift Group Inc.	 
	 	 	 	 
	 	
By: 

	/s/ Jonathan Irwin	 
	 	 	Name: Jonathan Irwin	 
	 	 	Title: Chief Executive Officer	 

	 	FOR THE PURCHASER:	 
	 	 	 
	 	Tangiers Investors, LP	 
	 	 	 	 
	 	
By: 

	/s/ Michael Sobeck	 
	 	 	Name: Michael Sobeck	 
	 	 	Title: Managing Member of the General Partner,	 
	 	 	Tangiers Capital, LLC	 

[SIGNATURE PAGE TO NOTE PURCHASE AGREEMENT]

 

[The remainder of this page has been left intentionally blank.]

 

 

 

 6froz_ex1028.htm

EXHIBIT 10.28

 

MEMORANDUM

 

	TO:  	Long Side Ventures LLC
	 	 
	FROM:  	JMJ Financial
	 	 
	DATE:   	February 28, 2013
	 	 
	RE:	Disbursement of Funds

 

Pursuant to that certain Assignment Agreement between the parties listed above dated February 28, 2013, a disbursement of funds will take place in the amount and manner described below:

 

	
Please disburse to:

	  
	
Amount to disburse:

	
$65,520

	
Form of distribution

	
Wire from U.S. bank account

	
Name

	
Justin Keener

	
Address

	
  

 

 

	
Bank Name:

	
Bank of America

	
Bank Address

	  
	
Bank Phone #

	  
	
ABA Routing #

	
053000196

	
Account #

	
040193278

	 	 
	 	TOTAL: $65,520

 

	
By: 

	/s/ Justin Keener	 	Dated: February 28, 2013
	 	JMJ Financial	 	 
	 	Name: Justin Keener	 	 

 

  

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STATEMENT OF NON-AFFILIATION

Neither I, Justin Keener, nor JMJ Financial is an officer, director, control person, or beneficial owner of more than 5% of any class of security of the Issuer and I am not and have not been during the preceding three months an affiliate of the Company as that term is defined by Rule 144 of the Securities Act of 1933.

All information furnished herein is true, accurate and complete. In the event any information shall come into my possession that would indicate that the information contained herein is not accurate or complete, I shall immediately inform you of such change or information in writing.

 

	
Signed:  

	/s/ Justin Keener	 	 
	 	JMJ Financial	 	 
	 	 	 	 
	Date: 	
2/28/13

	 	 

 

  

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ASSIGNMENT AGREEMENT

 

THIS ASSIGNMENT AGREEMENT (the “Agreement”) is made effective as of the 28th day of February 2013, by and among JMJ Financial, a sole proprietorship (the “Assignor”); Long Side Ventures LLC (the “Assignee”) and Frozen Food Gift Group, Inc. (the “Company”).

 

WHEREAS, Assignee wish to assume $100,800 of the Assignors’ right, title, and interest in and to that Convertible Promissory Note Document B-11302009a, dated as of December 15, 2009, made by the Company in the favor of the Assignor in an original principal amount of $300,000 (the “Note”) for which $75,000 of consideration has been paid to the Company by cash wire transfer as follows: $30,000 paid on December 15, 2009; $30,000 paid on March 12, 2010; and $15,000 paid on May 18, 2010; and

 

WHEREAS, the Assignor desires to assign to the Assignee $100,800, consisting of principal and interest, of the Assignors’ right, title, and interest in and to the Note, based on the terms and conditions set out herein.

 

NOW THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each of the parties hereto, the parties hereto agree as follows:

 

	
1.

	
Assignment. Subject to and in accordance with the terms and conditions set forth in this Agreement, the Assignor hereby grants, sells, assigns, and conveys to the Assignee, without recourse, $100,800 of Assignor’s right, title and interest in and to the Note.

 

	
2.

	
Consideration. In consideration for the assignment of the Note, Assignee shall pay to the Assignor $65,520 to be paid to Assignor in lawful money of the United States of America by February 28, 2013 to the account provided by the Assignor in a Memorandum to Assignee. Payment will be made from a U.S. bank account.

 

	
3.

	
Representations of Assignor. Assignor hereby represents and covenants to Assignee that:

 

	
  

	
a.

	
Assignor has all requisite authority to execute and deliver this Agreement and any other document contemplated by this Agreement and to perform its obligations hereunder and to consummate the transactions contemplated hereby.

 

	
  

	
b.

	
The outstanding principal amount of the Note as of February 28, 2013, including interest, OID, and any other fees, is $100,800.

	
  

	
c.

	
Assignor’s interest in and to the Note is free and clear of all liens, encumbrances, obligations or defects that are of record prior to the date of this Agreement.

 

	
  

	
d.

	
Assignor is an "accredited investor" within the meaning of Regulation D, Rule 501(a), promulgated by the Securities and Exchange Commission under the Securities Act.

 

  

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e.

	
Neither Assignor nor any of its officers and directors are now, or have been in the last 90-days, officers or directors of the Company, or beneficial holders of 10% or more of its stock.

 

	
4.

	
Representations of Assignee. The Assignee hereby represents and covenants, individually, to the Company and to the Assignor that:

 

	
  

	
a.

	
Assignee has all requisite power and authority to execute and deliver this Agreement and any other document contemplated by this Agreement to be signed by the Assignee and to perform its obligations hereunder and to consummate the transactions contemplated hereby;

 

	
  

	
b.

	
Assignee understands that the shares to be issued upon conversion of the Note have not been, and may not be, registered under the Securities Act of 1933, as amended (the “Securities Act”) by reason of a specific exemption from the registration provisions of the Securities Act, the availability of which depends upon, among other things, the bona fide nature of the investment intent and the accuracy of Assignee’s representations as expressed herein or otherwise made pursuant hereto;

 

	
  

	
c.

	
Assignee has substantial experience in evaluating and investing in securities of companies similar to the Company and acknowledges that it can protect its own interests. Assignee has such knowledge and experience in financial and business matters so it is capable of evaluating the merits and risks of its investment in the Company. Assignee is an “accredited investor” within the meaning of Regulation D, Rule 501(a), promulgated by the Securities and Exchange Commission under the Securities Act;

 

	
  

	
d.

	
Assignee has had an opportunity to receive all information related to the Company requested by them and to ask questions of and receive answers from the Company regarding the Company, and its business. Assignee has reviewed the Company’s periodic reports on file with Securities and Exchange Act filings;

 

	
  

	
e.

	
Assignee understands that there is a limited trading market for the shares issued upon conversion of the Note and that an active market may not develop for the shares; and

 

	
  

	
f.

	
Assignee represents and warrants that it has read the terms of the Note and agrees to such terms.

	
5.

	
Entire Agreement. This Agreement constitutes the entire agreement between the parties in respect of the assignments contemplated hereby and there are no warranties, representations, terms, conditions, or collateral agreements expressed or implied, statutory or otherwise, other than expressly set forth in this Agreement. This Agreement expressly supersedes and replaces any and all prior understandings or agreements between the parties with respect to the subject matter of this Agreement.

 

	
6.

	
All Further Acts. Each of the parties hereto will do any and all such acts and will execute any and all such documents as may reasonably be necessary from time to time to give full force and effect to the provisions and intent of this Agreement. The Assignor further agrees that it will, at any time and from time to time after the date hereof, upon the Assignee’s request, execute, acknowledge and deliver or cause to be executed and delivered, all further documents or instruments necessary to effect the transactions contemplated in this Agreement.

 

  

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7.

	
Choice of Law. This Agreement shall be governed by, and construed with, the laws of the State of Florida, without giving effect to the conflict of law provisions thereof.

 

	
8.

	
Notices. Notices to Assignee under the Note, shall be to the address set forth above.

 

	
9.

	
Headings. The headings and captions contained in this Agreement are for convenience of reference only and will not in any way affect the meaning or interpretation of this Agreement.

 

	
10.

	
Survival. Each party is entitled to rely on the representations and warranties of the other party and all such representations and warranties will be effective regardless of any investigation that the party has undertaken of failed to undertake. The representations and warranties will survive the effective date of this Agreement and continue in full force and effect until six (6) months after the effective date of this Agreement.

 

	
11.

	
No Assignment. No Party may assign any right, benefit or interest in this Agreement without the written consent of the other party, which consent may not be unreasonably withheld. This Agreement will inure to the benefit of, and be binding upon, the Assignors and the Assignee and their respective successors and assigns.

 

	
12.

	
Amendment. This Agreement may not be amended except by an instrument in writing signed by each of the parties.

 

	
13.

	
Counterparts and Electronic Means. This Agreement may be executed in several counterparts, each of which will be deemed to be an original and all of which will together constitute one and the same instrument. Delivery of an executed copy of this Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Agreement as of the day and year first written above.

 

	
14.

	
Hold Harmless. Assignee agrees that this assignment is “as-is” and Assignee agrees to indemnify and hold harmless Assignor from any and all claims and for any loss or liability related to this assignment. Assignee is aware that the Company is a troubled, under-capitalized, development stage company with no revenue and ongoing losses that are likely to continue. Assignee is aware that this is a risky investment and that Assignee may lose part or all of its investment.

	
15.

	
Effective. This partial assignment will become effective upon (1) signature by all three parties and (2) delivery of valid payment to Assignor.

  

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IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and year first above written.

 

	Assignor:	 
	 	 
	JMJ Financial	 
	 	 
	

/s/ Justin Keener

	 
	Justin Keener	 
	 	 
	Assignee:	 
	 	 
	Long Side Ventures LLC	 
	 	 
	/s/ Ben Kaplan	 
	Name: Ben Kaplan 

Title: Managing Member

	 
	 	 
	Company:	 
	 	 
	Frozen Food Gift Group, Inc.	 
	 	 
	/s/ Jonathan Irwin	 
	Jonathan Irwin, CEO	 

 

 

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