Document:

EX 10-5

 

Exhibit
10.5 

SETTLEMENT AGREEMENT

 

This Settlement Agreement
(“Agreement”) is entered into as of this 20th day of
September 2017, by and among HISPANICA INTERNATIONAL DELIGHTS OF
AMERICA, INC., a Delaware corporation (the
“Company”), and ANSON INVESTMENTS MASTER FUND, LP
(“Holder”).

 

R E C I T A L S

 

A. The Company executed that certain Convertible
Promissory Note dated as of September 30, 2016, in the original
principal amount of $440,000 in favor of Holder (the
“Note”), a copy of which is attached hereto
as Exhibit
A; and

 

B. The Company desires to pay off all outstanding
amounts due under the terms of the Note, including the principal
and accrued interest due and payable thereunder, totaling
$461,156.16 as
of the date hereof (the “Note
Balance”), and cancel all
shares of the Company’s common stock, $0.001 par value
(“Common
Stock”), beneficially
owned by Holder, consisting of 1.1 million shares of Common Stock
on the date hereof (the “Shares”), each under the terms and conditions set
forth in this Agreement.

 

NOW,
THEREFORE, for and in consideration for the foregoing, and for
other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto agree as
follows.

 

A G R E E M E N T

 

1.

On or before two (2) business days from the date
the Company receives the Shares, as more particularly set forth
below (the “Closing”), the Company shall pay to Holder the
amount of $525,000 (“Settlement
Amount”), which
Settlement Amount shall include the Note Balance, in cash or other
immediately available funds.

 

2.

Upon receipt of the Settlement Amount, (i) the
Note, a copy of which is attached hereto as Exhibit
A, shall be terminated and
cancelled, and shall be of no further force and effect; (ii) all
Shares beneficially owned by Holder, currently consisting of 1.1
million shares of Common Stock on the date hereof, shall be
cancelled on the books and records of the Company and/or its
transfer agent; and (iii) the Note shall be returned to the
Company, marked “Paid in Full”.

 

3.

Any
and all certificates issued to Holder evidencing the Shares shall
be returned to the Company, accompanied by (i) an irrevocable stock
power, (ii) a letter of authorization certifying that the
undersigned has the power and authority to execute the irrevocable
stock power, and (iii) such other documents as is requested and/or
required by the Company’s transfer agent necessary and/or
required to cancel the Shares on the books and records of the
Company and/or the transfer agent.

 

 

IN
WITNESS WHEREOF, the parties hereto have executed this Settlement
Agreement as of the date first above written.

 

	

HISPANICA
INTERNATIONAL DELIGHTS OF AMERICA, INC.

 

	
 

	
 

	

By:

	
 

	
 

	
 

	

______________________

	

Its:
Chief Executive Officer

 

	
 

	

ANSON
INVESTMENTS MASTER FUND LP

 

	
 

	
 

	

By:

	

Anson
Advisors Inc.

	
 

	
 

	

By:
______________________

	

 
              
       Its:
______________________Exhibit

EXECUTION COPY

Exhibit 10.1

SEVENTH AMENDMENT TO THIRD AMENDED AND RESTATED RECEIVABLES SALE AND SERVICING AGREEMENT

This SEVENTH AMENDMENT to THIRD AMENDED AND RESTATED RECEIVABLES SALE AND SERVICING AGREEMENT, dated as of September 1, 2017 (this “Amendment”), is entered into by and among SYNNEX CORPORATION, a Delaware corporation (“SYNNEX”), as servicer (in such capacity, the “Servicer”) and as an originator, SIT FUNDING CORPORATION, a Delaware corporation (the “Buyer”), HYVE SOLUTIONS CORPORATION, a California corporation (“Hyve” and, together with SYNNEX, the “Originators”), as an originator, the MANAGING AGENTS, COMMITTED LENDERS AND DISCRETIONARY LENDERS listed on the signature pages hereto, and THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, as administrative agent (the “Administrative Agent”), and is the fourteenth amendment to the SSA (as defined below). 
RECITALS
A.    WHEREAS, the Originators, the Servicer and the Buyer are parties to that certain Third Amended and Restated Receivables Sale and Servicing Agreement, dated as of January 23, 2009 (together with all exhibits and schedules thereto, and as heretofore amended, restated or supplemented, the “SSA”); and
B.    WHEREAS, the Originators, the Servicer, the Buyer, the Requisite Lenders and the Administrative Agent desire to amend and modify certain terms of the SSA as hereinafter set forth.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1.    Certain Defined Terms.  Capitalized terms that are used herein without definition and that are defined in Annex X to the Fourth Amended and Restated Receivables Funding and Administration Agreement, dated as of November 12, 2010 (the “RFA”), by and among the Buyer, the lenders party thereto and the Administrative Agent, shall have the same meanings herein as in Annex X to the RFA.
2.    Amendment to the SSA. The parties hereto hereby agree that Annex Z to the SSA is amended and restated in its entirety in the form of Exhibit A attached hereto. 
3.    Representations and Warranties.  Each Originator, the Servicer and the Buyer represents and warrants, for itself, as follows: 
(a)    It has taken all necessary action to authorize the execution, delivery and performance of this Amendment.
(b)    This Amendment has been duly executed and delivered by such Person and constitutes such Person’s legal, valid and binding obligation, enforceable in accordance with its terms, except as such enforceability may be subject to (i) bankruptcy, insolvency, reorganization, 

fraudulent conveyance or transfer, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity).
(c)    No consent, approval, authorization or order of, or filing (except for any filing required by federal securities laws), registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Person of this Amendment that has not already been obtained.
(d)    The execution and delivery of this Amendment does not (i) violate, contravene or conflict with any provision of its organization documents or (ii) violate, contravene or conflict in any material respect with any laws applicable to it.
(e)    Immediately after giving effect to this Amendment, (i) the representations and warranties of the Transaction Parties set forth in the SSA shall be true and correct (other than any such representations or warranties that, by their terms, are specifically made as of a date other than the date hereof, in which case, such representations and warranties shall be true and correct as of such other date), (ii) no Termination Event, Incipient Termination Event, Servicer Termination Event or Incipient Servicer Termination Event shall have occurred and be continuing and (iii) the Facility Termination Date has not occurred.
4.    Effect of Amendment.  Except as expressly amended and modified by this Amendment, all provisions of the SSA shall remain in full force and effect. After this Amendment becomes effective, all references in the SSA to “this Agreement”, “hereof”, “herein” or words of similar effect referring to the SSA shall be deemed to be references to the SSA as amended by this Amendment. This Amendment shall not be deemed to expressly or impliedly waive, amend or supplement any provision of the SSA other than as set forth herein.
5.    Effectiveness.  This Amendment shall become effective as of the date hereof upon receipt by the Administrative Agent of counterparts of this Amendment (whether by facsimile or otherwise) executed by each of the other parties hereto.
6.    SYNNEX Canada Notification.  The Servicer hereby provides notice to the Administrative Agent that as of the date of this Amendment SYNNEX Canada Limited/SYNNEX Canada Limitée (“SYNNEX Canada”) will be removed as a potential Originator under the Related Documents, and SYNNEX Canada shall (x) have no further obligations or duties under this Amendment or any other Related Document and (y) cease to be a party to each Related Document in any capacity or respect.
7.    Counterparts.  This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, and each counterpart shall be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy electronically (e.g. pdf) shall be effective as delivery of a manually executed counterpart of this Amendment.

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8.    Governing Law.  This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.
9.    Severability.  Each provision of this Amendment shall be severable from every other provision of this Amendment for the purpose of determining the legal enforceability of any provision hereof, and the unenforceability of one or more provisions of this Amendment in one jurisdiction shall not have the effect of rendering such provision or provisions unenforceable in any other jurisdiction.
10.    Section Headings.  The various headings of this Amendment are inserted for convenience only and shall not affect the meaning or interpretation of this Amendment or the SSA or any provision hereof or thereof.
11.    Related Document.  This Amendment is a Related Document and all references to a “Related Document” in the RFA, the SSA and the other Related Documents (including, without limitation, all such references in the representations and warranties in the RFA, the SSA and the other Related Documents) shall be deemed to include this Amendment.
[NO FURTHER TEXT ON THIS PAGE]

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IN WITNESS WHEREOF, the parties have executed this Amendment as of the date first written above.
 
SIT FUNDING CORPORATION, as Buyer

By:/s/ Simon Y. Leung                  
Name: Simon Y. Leung      
Title: Senior Vice President General Counsel and 
Corporate Secretary      
 
 
SYNNEX CORPORATION, as Servicer

By:/s/ Simon Y. Leung                 
Name: Simon Y. Leung      
Title: Senior Vice President General Counsel and 
Corporate Secretary     
          

SYNNEX CORPORATION, individually and as an Originator

By: /s/ Simon Y. Leung                 
Name: Simon Y. Leung      
Title: Senior Vice President General Counsel and 
Corporate Secretary     
           

 

HYVE SOLUTIONS CORPORATION,  
as an Originator 

By: /s/ Simon Y. Leung______________________ 
Name: Simon Y. Leung      
Title: Senior Vice President General Counsel Corporate Secretary   

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, as Administrator for Gotham Funding Corporation, as Managing Agent for the MUFG Lender Group and as the MUFG Committed Lender

By:/s/Richard Gregory Hurst             
Name: Richard Gregory Hurst      
Title: Managing Director  

GOTHAM FUNDING CORPORATION, as the MUFG Discretionary Lender

By:/s/ David V. DeAngelis            
Name:    David V DeAngelis  
Title:    Vice President  

THE BANK OF TOKYO-MITSUBISHI UFJ, LTD., NEW YORK BRANCH, as Administrative Agent

By:/s/ Richard Gregory Hurst          
Name: Richard Gregory Hurst      
Title: Managing Director

THE BANK OF NOVA SCOTIA, as Administrator for Liberty Street Funding LLC, as Managing Agent for the BNS Lender Group and as the BNS Committed Lender

By:/s/ Diane Emanuel                 
Name:     Diane Emanuel 
Title:    Managing Director & Co-Head 

LIBERTY STREET FUNDING LLC, as the BNS Discretionary Lender

By: /s/ Frank B. Bilotta             
Name:    Frank B Bilotta 
Title:    Vice President  

SMBC NIKKO SECURITIES AMERICA, INC., as Administrator for Manhattan Asset Funding Company LLC and as Managing Agent for the  SMBC Lender Group 
 
 
By:/s/ Yukimi Konno                 
Name:    Yukimi Konno 
Title: Managing Director 

SUMITOMO MITSUI BANKING CORPORATION, as the SMBC Committed Lender 
 
 
By:/s/ Masanori Yoshimura             
Name: Masanori Yoshimura  
Title: Director

MANHATTAN ASSET FUNDING COMPANY LLC, as the SMBC Discretionary Lender 

By:    MAF Receivables Corp., its sole member
By:/s/ Irina Khaimova                 
Name:    Irina Khainova  
Title: Vice President 

BANK OF AMERICA, N.A., as Managing Agent for the BANA Lender Group and as the BANA Committed Lender

By:/s/ Christopher Haynes             
Name: Christopher Haynes 
Title: Vice President 

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Managing Agent for the Wells Lender Group and as the Wells Committed Lender

By:/s/ Eero Maki                 
Name:     Eero Maki  
Title: Managing Director  

EXHIBIT A

ANNEX Z
FINANCIAL TESTS

(a)    Consolidated Leverage Ratio.  The Parent shall not permit the Consolidated Leverage Ratio as of the end of any fiscal quarter of the Parent, commencing with the fiscal quarter ending November 30, 2017, to be greater than 4.00:1.0.
(b)    Consolidated Interest Coverage Ratio.  The Parent shall not permit the Consolidated Interest Coverage Ratio as of the end of any fiscal quarter of the Parent, commencing with the fiscal quarter ending November 30, 2017, to be less than 3.50:1.0. 

Capitalized terms used in this Annex Z and not otherwise defined in the Funding Agreement shall have the meanings ascribed to such terms in the Credit Agreement attached hereto as Schedule 1.  Each of the financial tests set forth in this Annex Z shall be calculated in accordance with the Credit Agreement attached hereto as Schedule 1.

SCHEDULE 1 TO ANNEX Z

CREDIT AGREEMENT

[Attached]

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