Document:

Exhibit 10.38

 

TERM SHEET

 

Hall of Fame Resort & Entertainment
Company

Private Placement of 

Series B Convertible Preferred Stock
and

Warrants to Purchase Common Stock

 

 

 

This term sheet, dated
as of January 28, 2021 (this “Term Sheet”), between Hall of Fame Resort & Entertainment Company, a Delaware
corporation (the “Company”), and IRG, LLC, a Delaware limited liability company (the “Investor”),
is a binding and enforceable agreement for the principal terms of the Company’s sale to Investor of the Company’s Series
B Convertible Preferred Stock (defined below) and Warrants (defined below) to purchase shares of Common Stock (defined below) (the
“Transaction”).

 

	Issuer: 	The Company
	 	 
	Purchaser:	The Investor 
	 	 
	Investment Amount:	At least $15,000,000.00 
	 	 
	Securities:	
        Units (the “Units”), each consisting
        of (i) one share of Series B Convertible Preferred Stock, par value $0.0001 per share (the “Series B Preferred Stock”),
        and (ii) a number of warrants equal to (0.5 * Unit Price) / Common Stock Value (the “Warrants”).

         

        Each Warrant will be exercisable to purchase
        one share of our common stock, par value $0.0001 per share (“Common Stock”), at an exercise price of $6.90 per
        share of Common Stock. Each Warrant is exercisable from the Closing Date through the third anniversary of the Closing Date.

         

        The Series B Preferred Stock and the Warrants
        comprising the Units will separate upon the closing of the Transaction and will be issued separately but may be purchased only
        as a Unit.

	 	 
	Purchase Price:	The purchase price per Unit shall be $1,000.00 (the “Unit Price”).
	 	 
	Common Stock Value	The “Common Stock Value” shall be  the Nasdaq Official Closing Price (as reflected on Nasdaq.com) on the trading day immediately preceding the day the Company publicly files an S-1 Registration Statement.
	 	 
	Closing Date:	The closing date of the Transaction shall occur no later than February 26, 2021 (the “Closing Date”).
	 	 
	Ranking:	At the Closing, the Series B Preferred Stock shall rank pari passu with any of the Company’s preferred stock issued prior to the Transaction (“Parity Preferred Stock”) and senior to the Company’s Common Stock, with respect to dividends, liquidation and dissolution.

 

     

     

    

 

	Dividend Rights:	Dividends will accrue on the Series B Preferred Stock at a rate of 7% per annum, payable whenever funds are legally available and when and as declared by the Company’s Board of Directors, with (i) 4% per annum payable in cash at the end of each quarter (“Cash Dividend”), and (ii) 3% per annum payable, at the election of Investor, in cash or in shares of the Company’s Common Stock at a price equal to the Common Stock Value (“PIK Dividend”).  Such dividends shall be non-cumulative. Cash Dividends shall be payable annually in arrears.  PIK Dividends shall be issued when all outstanding shares of Series B Preferred Stock have converted into shares of Common Stock.  For purposes of clarity, no Warrants will be issued in connection with issuance of PIK Dividends.  Dividends accrued and payable on the Series B Preferred Stock will be paid in preference to any dividends accrued or payable on the Common Stock.  
	 	 
	Permissive Conversion:	
        Each share of Series B Preferred Stock
        will be convertible, at any time at the option of the holder, into a number of shares of Common Stock equal to:

         

        Unit Price plus accrued and unpaid dividends

        Common Stock Value

	 	 
	Automatic Conversion:	
        On the third anniversary of the Closing
        Date, each remaining outstanding share of Series B Preferred Stock shall be automatically converted, into a number of shares of
        Common Stock equal to:

         

        Unit Price plus accrued and unpaid dividends

        Common Stock Value

	 	 
	Adjustments Upon Recapitalizations:	In the event of any stock dividends, stock splits, subdivisions, combinations, or similar events, an adjustment will be made such the holders of the Series B Preferred Stock will hold the same relative ownership position (including, on an “as converted basis”) after such action as they had immediately prior to such action.  
	 	 
	Voting Rights:	Holders of the Series B Preferred Stock shall not have any voting rights except as required by law.  To the extent that voting rights otherwise required by law can be waived or released, such voting rights are hereby waived and released.
	 	 
	Nasdaq Compliance	To the extent Nasdaq or Nasdaq staff advise that the Transaction requires shareholder approval under Nasdaq listing rule 5635(d), the parties shall negotiate in good faith to revise the terms of the Transaction so that shareholder approval is not required under Nasdaq listing rule 5635(d).

 

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	Closing Conditions	It is a condition to the Company’s obligation to close the Transaction that: (i) Nasdaq staff agree no shareholder approval is required, and (ii) any consent required under the Company’s Term Loan Agreement dated December 1, 2020 or Note Purchase Agreement, dated July 1, 2020, is obtained.
	 	 
	Transaction Documents:	The investment in the Series B Preferred Stock shall be made by the Investor pursuant to a Securities Purchase Agreement and other related documents, which agreements shall contain, among other things, appropriate representations, warranties and covenants (all such documents, together with the Securities Purchase Agreement, collectively, the “Transaction Documents”). 
	 	 
	Expenses:	Each party will pay its own expenses related to this Transaction.
	 	 
	Governing Law:	Delaware
	 	 
	Binding Provisions:	This Term Sheet is a binding agreement, unless and until superseded by Transaction Documents.
	 	 
	Assignability	Investor may assign this agreement to an affiliate in its discretion.
	 	 
	Confidentiality	Unless both parties agree otherwise, the terms and conditions described in this Term Sheet, including the fact of its existence, shall be confidential information and shall not be disclosed to any third party, prior to the Company’s disclosure of the Transaction in any filing with the Securities and Exchange Commission. If any party determines that it is required by law to disclose information regarding this Term Sheet or to file this Term Sheet with any governmental or quasi-governmental authority, it shall, a reasonable time before making any such disclosure or filing, consult with the other party regarding such disclosure or filing.
	 	 
	Counterparts	This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute one and the same instrument.  
	 	 
	Expiration:	
        This Term Sheet will expire unless
signed by the Investor and the Company on or before January 29, 2021.

 

[Signatures
on Next Page]

 

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IN WITNESS WHEREOF,
the Parties hereto have duly executed this Agreement as of the date first above mentioned.

 

	 	INVESTOR
	 	 	 
	 	IRG, LLC
	 	 	 
	 	By: 	/s/ Richard H. Klein
	 	Name:	Richard H. Klein
	 	Title:	Chief Financial Officer
	 	 	 
	 	THE COMPANY
	 	 	 
	 	Hall of Fame Resort & Entertainment Company
	 	 	 
	 	By: 	/s/ Michael Crawford
	 	Name: 	Michael Crawford
	 	Title: 	President and Chief Executive Officer

 

Signature Page to Term SheetDocument

									
		Union Carbide Corporation and Subsidiaries	EXHIBIT 10.5.18
			

EIGHTEENTH AMENDMENT TO THE 
AMENDED AND RESTATED REVOLVING CREDIT AGREEMENT

This Eighteenth Amendment to the Amended and Restated Revolving Credit Agreement (this “Amendment”) is made effective as of December 30, 2020, and is entered into among Union Carbide Corporation, as Borrower (“Borrower”), The Dow Chemical Company, as Lender (“Lender”) and Union Carbide Chemicals & Plastics Technology LLC as the Subsidiary Guarantor (the “Subsidiary Guarantor”) (together, the “Parties”).

BACKGROUND

The Parties have entered into the Amended and Restated Revolving Credit Agreement dated as of May 28, 2004, as amended by the First Amendment to the Amended and Restated Revolving Credit Agreement dated October 29, 2004, the Second Amendment to the Amended and Restated Revolving Credit Agreement dated December 30, 2004, the Third Amendment to the Amended and Restated Revolving Credit Agreement dated September 30, 2005, the Fourth Amendment to the Amended and Restated Revolving Credit Agreement dated September 30, 2006, the Fifth Amendment to the Amended and Restated Revolving Credit Agreement dated September 30, 2007, the Sixth Amendment to the Amended and Restated Revolving Credit Agreement dated September 30, 2008, the Seventh Amendment to the Amended and Restated Revolving Credit Agreement dated September 30, 2009, and the Eighth Amendment to the Amended and Restated Revolving Credit Agreement dated September 30, 2010, the Ninth Amendment to the Amended and Restated Revolving Credit Agreement dated September 30, 2011, the Tenth Amendment to the Amended and Restated Revolving Credit Agreement dated December 6, 2012, the Eleventh Amendment to the Amended and Restated Revolving Credit Agreement dated December 16, 2013, the Twelfth Amendment to the Amended and Restated Revolving Credit Agreement dated December 17, 2014, the Thirteenth Amendment to the Amended and Restated Revolving Credit Agreement dated December 18, 2015, the Fourteenth Amendment to the Amended and Restated Revolving Credit Agreement dated December 12, 2016, the Fifteenth Amendment to the Amended and Restated Revolving Credit Agreement dated December 30, 2017, the Sixteenth Amendment to the Amended and Restated Revolving Credit Agreement dated December 30, 2018, and the Seventeenth Amendment to the Amended and Restated Revolving Credit Agreement dated December 30, 2019  (the “Credit Agreement”).  Union Carbide Subsidiary C is no longer a Subsidiary Guarantor under this Credit Agreement as it is no longer a wholly owned subsidiary of Borrower.

The Parties desire to amend the Credit Agreement according to the terms in this Amendment. Any capitalized terms used in this Amendment, but not otherwise defined in this Amendment, are as defined in the Credit Agreement.

THE AGREEMENT

1.         Amendment to Section 1.1. The Parties agree to amend Section 1.1 of the Credit Agreement by 
            Replacing the definition of “Scheduled Termination Date” with the following definition:

“Scheduled Termination Date” means December 30, 2021.

2.         No Other Amendment or Waiver. Except as expressly amended by this Amendment, the Credit 
            Agreement and all other Loan Documents remain in full force and effect in accordance with their 
            terms, and the Parties ratify and confirm the Credit Agreement and all other Loan Documents in 
            all respects.
69

									
		Union Carbide Corporation and Subsidiaries	EXHIBIT 10.5.18
			

3.         Execution in Counterparts. This amendment may be executed in any number of counterparts and
            by different parties in separate counterparts, each of which when so executed will be deemed
            to be an original and all of which taken together will constitute one and the same agreement. 
            Signature pages may be detached from multiple separate counterparts and attached to a single 
            counterpart so that all signature pages are attached to the same document. 

4.         Governing Law. This Amendment and the rights and obligation of the Parties to this Amendment
will be governed by, and construed and interpreted in accordance with, the law of the State of New York.

5.         Subsidiary Guarantor.  The Guarantor to this Agreement will only be bound by its guarantee if it remains a wholly owned subsidiary of the Borrower.

The Parties agree that this Amendment is effective as of December 30, 2020, and they have caused their authorized representatives to execute this Amendment below.

									
	LENDER:		SUBSIDIARY GUARANTOR:
			
	THE DOW CHEMICAL COMPANY		UNION CARBIDE CHEMICALS &
			PLASTICS TECHNOLOGY LLC
			
			
	By:  /s/ GARY MCGUIRE		By: /s/ GARY BELLAVER
	Name:  Gary McGuire
		Name:  Gary Bellaver
	Title:    Vice President and Treasurer		Title:    President
			
			
	BORROWER:		
			
	UNION CARBIDE CORPORATION		
			
			
	By: /s/ IGNACIO MOLINA		
	Name:  Ignacio Molina		
	Title:    Chief Financial Officer, Vice President, and Treasurer
		

Signature Page
Eighteenth Amendment to the Amended and Restated Revolving Credit Agreement
70

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