Document:

hgbl-ex102_6.htm

	
	
Exhibit 10.2

L O S  A N G E L E S,  C A
S A N  F R A N C I S C O,  C A
W I L M I N G T O N,  D E
N E W  Y O R K,  N Y
H O U S T O N,  T X

10100 SANTA MONICA BLVD.
13th FLOOR
LOS ANGELES
CALIFORNIA 90067-4003

TELEPHONE: 310.277.6910
FACSIMILE: 310.201.0760

SAN FRANCISCO
150 CALIFORNIA STREET
15th FLOOR
SAN FRANCISCO
CALIFORNIA 94111-4500

TELEPHONE: 415.263.7000
FACSIMILE: 415.263.7010

DELAWARE
919 NORTH MARKET STREET
17th FLOOR
P.O. BOX 8705
WILMINGTON
DELAWARE 19899-8705

TELEPHONE: 302.652.4100
FACSIMILE: 302.652.4400

NEW YORK
780 THIRD AVENUE
34th FLOOR
NEW YORK
NEW YORK 10017-2024

TELEPHONE: 212.561.7700
FACSIMILE: 212.561.7777

TEXAS
440 LOUISIANA STREET
SUITE 900
HOUSTON
TEXAS 77002-1062

TELEPHONE: 713.691.9385
FACSIMILE: 713.691.9407

WEB: www.pszjlaw.com

 

 

 

 

 

 

 

 

 

 

 

 

 
 

			
	
Shirley S. Cho
	
December 22, 2021
	
310.772.2364
scho@pszjlaw.com

 

Via Email (jsklar@hginc.com)

James Sklar, Esq.

Heritage Global Inc.

12625 High Bluff Drive, Suite #305

San Diego, CA 92130  

 

	
 
	
Re:
	
Letter Agreement re Service on Board of Directors of Heritage Global Inc. (“HGI”) 

Dear Jim:

 

Thank you for inviting me to join the Board of Directors of HGI (the “Board”).  I am grateful for the opportunity to serve on the Board and for the confidence in me reflected in the Board’s invitation to serve as a Director.  

Please understand that I will be serving as a director solely in my individual capacity.  In this capacity, I will not be acting as a representative or attorney of Pachulski Stang Ziehl & Jones LLP (“PSZJ”) and my service as a director will not cause HGI or the Board to become a client of PSZJ.  As such, in carrying out the duties of a Board member, I will not be providing legal advice or charging legal fees on behalf of PSZJ or otherwise.  With regard to all Board meetings or communications involving Directors, it should be assumed that I am acting solely as a Director and that no attorney-client privilege will apply to any of our communications.

Presently HGI is not a client of PSZJ.  To the extent that HGI at any future time desires to seek legal advice from PSZJ, and I am serving on the Board at that time, I will provide you with an additional notice of certain factors to take into account in your consenting to a dual role for me both as a Director and as an attorney at PSZJ.  In addition, I will refrain from participating in, and be walled off from, any discussions or considerations by the 

DOCS_LA:340748.3 68700/001

	
	
 

	
 

Board, while I am a Board member, regarding whether to retain PSZJ to provide any legal services.

HGI acknowledges that PSZJ has represented, now represents, and will continue to represent numerous companies and entities (which may include, without limitation, HGI or its affiliates’ clients, customers, creditors, and direct competitors) over a wide range of industries and businesses and in a wide variety of matters.  Given this, HGI agrees to the Information Barrier Protocol set forth in the attached Appendix A, which is incorporated as though set forth herein.  Depending on the circumstances, PSZJ may need to also seek a conflicts waiver from HGI and if that occasion arises, PSZJ will seek that from HGI by separate letter agreement. 

If I believe that there is a potential risk that would preclude me from exercising my independent judgment on behalf of HGI at any point in the future, I will promptly bring this to your attention so that you can decide how you wish to proceed.  In that regard, I ask that you do the same if you believe such a situation arises, and in particular, if HGI intends to become involved in a bankruptcy case where PSZJ is already involved as counsel, HGI agrees to provide me with prior notice.  

Thank you for working with your D&O insurance carrier in good faith to incorporate the areas of concern we have previously identified. As a further condition to my joining the Board, HGI agrees to enter into an indemnification agreement mutually satisfactory to both of us.

I very much look forward to working with you and the Board.  

Very truly yours,

 

Shirley S. Cho

 

The undersigned confirms that: (a) he has read, understands and agrees to all of the above terms and provisions on behalf of HGI; and (b) he is authorized to execute and enter into this Agreement on behalf of the HGI and its affiliates.

DOCS_LA:340748.3 68700/001

	
	
 

	
 

 

HERITAGE GLOBAL INC. AND ITS AFFILIATES

 

_____/s/ James Sklar___________________________

By: James Sklar

Executive Vice President, General Counsel and Secretary

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DOCS_LA:340748.3 68700/001

	
	
 

	
 

 

APPENDIX A:  Information Barrier Protocol

Shirley S. Cho (“SSC”), a partner at Pachulski Stang Ziehl & Jones LLP (“PSZJ”) is in the process of being considered to serve on the Board of Directors (“Board”) of Heritage Global Inc. (“HGI”).  In order to address possible actual or potential conflicts between PSZJ and HGI or satisfy disinterested requirements for professionals employed in bankruptcy cases for so long as SSC is a member of the Board, PSZJ and HGI agree to follow the general procedures (the “Information Barrier Protocol”) to prevent any sharing or disclosure of information between SSC and HGI and between SSC and PSZJ on a Covered Matter.  

A Covered Matter includes any matter in which: (i) PSZJ is retained as counsel to any party (other than HGI or its affiliates) and HGI (or any of its affiliates) is also involved; (ii) HGI (or its affiliate) submits a formal bid (or expression of interest, if applicable) in a matter where PSZJ represents a party in the matter (other than HGI or its affiliates); (iii) HGI (or its affiliate) becomes formally engaged in a matter where PSZJ represents a party in the matter (other than HGI or its affiliates); (iv) SSC has actual knowledge that HGI intends to pursue involvement in a bankruptcy matter where PSZJ represents a party in the matter (other than HGI or its affiliates); or (v) any other matter that either PSZJ or HGI request in writing be treated as a Covered Matter.   

For any Covered Matter, PSZJ and HGI agree to implement the following protocol:

1) HGI Screen for SSC.  SSC shall be screened from receipt of any emails or communications (whether in writing or oral) involving any Covered Matter and shall be excused and recused from any Board Meetings discussing any Covered Matter.  HGI Board members and employees expected to communicate with SSC shall be apprised of the Covered Matter and shall be instructed not to communicate with SSC on any Covered Matter.    

2) PSZJ Screen for SSC.  After a matter is determined by PSZJ to be a Covered Matter, (1) SSC shall have no involvement in the Covered Matter, (2) PSZJ attorneys and staff members shall be instructed not to discuss any matters or information or share any documents with SSC relating to the Covered Matter, and (3) SSC 

DOCS_LA:340748.3 68700/001

	
	
 

	
 

shall not be permitted to access any PSZJ client files for the Covered Matter, including documents in PSZJ’s virtual file room or PSZJ’s document management system. 

 

DOCS_LA:340748.3 68700/001DATED 10th January 2016

 

 

 

 

 

 

 

 

 

LOAN
AGREEMENT FROM A DIRECTOR TO A COMPANY (Unsecured Loan)

 

 

 

Between

 

 

 

 

 

 

(1) Bubblr Limited

 

and

 

(2) Stephen Morris

 

 

 

 

 

 

 

    	 		 

    	 

    

 

THIS AGREEMENT is dated

 

BETWEEN:

 

		(1)	Bubblr Limited (the “Borrower”) with 09012621 and 2 Chapel Court, London, SE1 1HH and

 

		(2)	Stephen Morris (the “Lender”) being a Director of the Borrower of 4 Blairadam Grove, Keltybridge,
Kelty, Fife, KY4 0JU.

 

AGREED TERMS:

 

		1.	Definitions and Interpretation

In this Agreement:- 

	
     

    “Business Day”

     

     

    “Commencement
    Day”
	
     

    A day other than a Saturday, Sunday or public holiday
    in England when banks in London are open for business;

     

    the date of this Agreement;

	“Default”	means any event or circumstance as specified in clause 8;
	“Loan”	The term loan facility made available under this Agreement;

 

 

		2.	The Facility

The Lender, being a
Director of the Borrower agrees to provide the Borrower with a Loan under the terms of this agreement as set out in the Schedule hereto.

 

		3.	Purpose

		3.1	The Borrower shall use all sums borrowed by it under this agreement for Working Capital or as the Borrower
deems appropriate.

		3.2	The Lender is not obliged to monitor or verify how any amount under this agreement is used.

		4.	Drawdown

The Loan is available
for drawing by the Borrower in multiple tranches as available, being renumeration due to the Director for work undertaken on behalf of
the Company or the sale of the Directors shares to a third party, or as and when required by agreement with the Borrower .

    	 	2	 

    	 

    

		5.	No Security

Notwithstanding the terms of any charge
created by the Borrower to secure other sums due to the Lender, this Loan is and will remain unsecured.

		6.	Repayment

 

		6.1	The Borrower shall repay the Loan and all accrued interest in instalments in accordance with the Schedule
hereto.

		6.2	Without any obligation upon the Lender to do so, the Lender shall be entitled to allow the Borrower extended
time to pay or grant any other indulgence to the Borrower without affecting any of the rights of the Lender in whole or in part.

 

		7.	Interest

 

		7.1	The Loan shall bear interest at the rate of 0% percent.

 

Default

		7.2	The Loan plus accrued interest shall (subject to the service of notice and/or the obtaining of any court
order) become immediately due and payable by the Borrower, in so far as then remaining unpaid, if any of the following events occurs:-

		7.2.1	Non-payment of any payments due (including interest) within seven days from the date on which it is due.

		7.2.2	Any information given or representation made by or at the request of the Borrower to the Lender proving
to be inaccurate.

		7.2.3	The Borrower becomes subject to an administration order or makes any voluntary arrangement with its creditors
(within the meaning of the Insolvency Act 1986) or becomes bankrupt.

		7.2.3	An encumbrancer takes possession, or a receiver is appointed, of any of the property or assets of the
Borrower.

		7.2.4	The Loan is used otherwise than as specified in this Agreement.

 

		7.3	The Borrower shall be liable for any costs incurred by the Lender in taking any steps to obtain payment of
monies due under this Agreement.

		8.	Payment

All payments made by the Borrower to the
Lender under this Agreement shall be made in full without set-off and paid on the due date for that payment in sterling and in immediately
cleared funds to the account of the Lender at TSB Bank SC:87-70-06 Account:75664260 or any other account as the Lender may notify the
Borrower.

		9.	Set-off

The Lender may set
off any amounts due under this Agreement against any sums owed by the Lender to the Borrower.

    	 	3	 

    	 

    

		10.	Assignment

		10.1	The Lender may assign any of its rights hereunder, or transfer any of its rights or obligations hereunder
by novation.

		10.2	The Borrower may not assign any of its rights or obligations under this Agreement.

 

		11.	Communications

		11.1	All communications between the parties about the loan shall be in writing and delivered by hand or sent
by pre-paid first class post to the other party’s registered office address or by electronic mail.

		11.2	Communications shall be deemed to have been received:

		11.2.1	if sent by pre-paid first class post, two Business Days after posting (exclusive of the day of posting);
or

		11.2.2	if delivered by hand, on the day of delivery; or

		11.2.3	electronic acknowledgement is received by the sender.

 

		12	Governing Law and Jurisdiction

The Agreement shall
be governed by, construed and enforced in accordance with the law of England and Wales to the jurisdiction of which the parties hereto
submit.

 

IN WITNESS WHEREOF this Agreement has been
duly executed the day and year first before written

 

	SIGNED by	 	Counter signed on 25th
June 2019 by
	 	 	 
	 	 	 
	/s/ Stephen Morris		/s/ Steven Saunders
	Stephen Morris	 	Steven Saunders
	for
and on behalf of Bubblr Limited	 	for and on behalf of Bubblr Limited

 

SIGNED
by

 

/s/
Stephen Morris

Stephen Morris

 

    	 	4	 

    	 

    

 

SCHEDULE 

Loan Amount and Repayment Schedule

 

 

Loan Amount:£ not specified

 

Loan Date:10th January 2016

 

 

Repayment Date:On request of Lender

 

 

 

	Year-end Date	Capital Addition Amount	Capital Repayment Amount	Interest Repayment	Balance of Loan remaining
	April 30, 2018	£                     -   	 £                      -   	 £                       -   	 £           201,430 
	April 30, 2019	£          221,028 	 £                      -   	 £                       -   	 £           422,458 
	April 30, 2020	 £                      -   	 £            54,790             	£                       -   	 £           367,668 
	December 31, 2020	 £                      -   	 £                      - 	£                       -   	 £           367,668 
	November 30, 2021(financial year to date)	 £                      -   	 £            51,133 	£                       -   	 £           316,535 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    	 	5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00338-of-00352.parquet"}]]