Document:

Exhibit
10.2

 

LOAN
AGREEMENT

 

This
Agreement is made and entered into on January 17, 2022 by and between:

 

THE
INVESTOR:

 

Investor’s
company name: Arab League Investment Group

Investor’s
location: Cairo, Egypt.

Investor’s
Commercial Registration No: ARUN2007

Investor’s
company address: Arab League Tahrir Square, Downtown Business District, Cairo, Egypt

Name
of representative person authorized to sign: Ahmed Aboul Gheit

Designation/Title/Job:
Arab League Secretariat

Bank
name: Arab Bank

Account full name: Arab League Investment Group

Account
Username: ARAB LEAGUE

Account
unique code: 16728

Bank
Account Number: 3883093002

Bank BIC/Swift Code: ARABJOAX100

Investor’s
admin email: admin@arablge.com

Investor’s
information email: info@arablge.com

Investor’s
customers care email: support@arablge.com

Investor’s
website: www.arablge.com

 

and

 

THE
FINANCED COMPANY/BORROWER: 

 

Company’s
name: PHI GROUP, INC.

Borrower’s
nationality: The United States of American (U.S.A.)

Borrower’s
Commercial Registration No: 2017-000769478

Borrower’s
company address: 2323 Main Street, Irvine, CA 92614, U.S.A.

Borrower’s
name of representative person authorized to sign: Henry Dack Fahman

Borrower’s
Designation/Title/Job: Chairman & Chief Executive Officer

Borrower’s
email: henry@phiglobal.com

Borrower’s
website: www.phiglobal.com

Bank
account name: PHILUX Capital Advisors, Inc. (a wholly-owned subsidiary of the Borrower) 

Bank
name: Bank of The West – BNP Paribas

Bank account number: 068423706

Bank SWIFT CODE: BWSTUS66

Bank
address: 6881 Warner Avenue, Huntington Beach, CA 92647, U.S.A.

 

The
Financed Company has a business plan to acquire profitable activity which will create wealth and value over more than a fifteen (15)
years’ investment plan.

 

	 	●	The
    Financier and The Financed companies are collectively referred to as the Parties.
	 	 	 
	 	●	Therefore,
    in consideration of the foregoing facts and the mutual representations and covenants hereinafter set forth, the parties hereto agree
    as follows:

 

    	CONFIDENTIAL	 	1

     

    

 

STATEMENT

 

	 	●	The
    Financier warrants and undertakes that it is ready, willing and able to make a cash- backed term investment loan of two point five
    percent (2.5%) interest rate per annum for fifteen (15) years with amortization and the first 3 (three) years of grace as to interest
    servicing, and principal to be repaid at the end of the ten (15) years or more as will be decided to The Financed Company to fund
    the projects listed under purpose.
	 	 	 
	 	●	The
    Financed Company accepts the terms and conditions of the term loan proposed by the Financier as set out above to finance its projects
    identified under purpose.
	 	 	 
	 	●	This
    Agreement may be executed only once, to the value of Two Hundred Million U.S. Dollars (USD 200,000,000) required in one tranche,
    or in multiple tranches, up to the total value of Two Hundred Million U.S. Dollars (USD 200,000,000) under the same terms
    and conditions herein consented by both parties.

 

ARTICLE
(1) - PREAMBLE

 

The
recitals set forth above constitute an integral part of this agreement at all time and considered as a fundamental condition to execute
it between The Financier and The Financed Company on a mutually agreed basis.

 

ARTICLE
(2) - PURPOSE OF THIS AGREEMENT

 

	 	2.1	The
    Financier and The Financed Company as set out in this Loan Agreement.
	 	2.2	The
    Financier warrants and undertakes that it has the financial resources to make a cash back term Loan at an annual interest rate of
    2.5% (two-point five percent) of requested value for at least fifteen (15) years with the first 3 (three) years of grace as to interest
    servicing and principal to be repaid at the end of the fifteen (15) years to The Financed Company in order to fund the projects listed
    under purpose in this section.
	 	2.3	The
    Financed Company accepts the terms and conditions of the term loan from the Financier as set out above to finance its projects identified
    under purpose.
	 	2.4	The
    Financier will provide immediate funding to The Financed Company to complete and settle the Acquisitions of Businesses – Total
    Financing Amount of Two Hundred Million U.S. Dollars (USD 200,000,000).
	 	2.5	The
    Loan funds will be utilized to settle and complete the acquisition prices, the business development to implement the respective project/business,
    and its marketing plans.

 

    	CONFIDENTIAL	 	2

     

    

 

ARTICLE
(3) - RIGHTS GRANTED

 

	 	3.1	Subject
    to the terms and upon the conditions set forth herein, throughout the duration of this Agreement, The Financier hereby accept to
    make available to The Financed Company the cash amount of Two Hundred Million U.S. Dollars (USD 200,000,000).
	 	3.2	The
    Financed Company is accepting this loan at the rate of 2.5% (two point five percent) interest per year payable at the end of each
    anniversary date, and loan payable in a minimum duration of fifteen (15) years plus the first 3 (three) years of grace period for
    servicing interest, with principal to be repaid in by a lump sum payment within or at the end of fifteen (15) years. The Financier
    is to make available Two Hundred Million U.S. Dollars (USD 200,000,000) to fund as agreed with The Financed Company immediately
    upon execution of this agreement.

 

ARTICLE
(4) – PURPOSE

 

The
provision of the fund is to enable the Financier to make a cash backed loan to The Financed Company as set out in Article 2 in this agreement
and any top-up the loan principal amount as mutually agreed thereto from time to time by the parties.

 

ARTICLE
(5) - DUTIES OF THE FINANCIER

 

Duties
of the financier, under the terms and conditions of this contract shall be as follows:

 

	 	(5.1)	To
    sign copies of the agreement 
	 	(5.2)
    	To
    introduce the financed company to his bank, to create a witness offshore account.
	 	(5.3)
    	To
    make a transfer order to his bank for fund release proper. 
	 	(5.4)
    	To
    nominate his desired insurance firm from any part of the world where he chooses the borrower to obtain the insurance bond from to
    secure the loan sum.

 

ARTICLE
(6) - DUTIES OF THE FINANCED COMPANY

 

The
duties of The Financed Company, under the terms and conditions of this contract shall be as follows:

 

	 	(6.1)
    	To
    counter-sign the agreement, write an official loan request letter using his full company details on letterhead 
	 	(6.2)
    	To
    provide his recent statement of account which will confirm to the investor that it is in good banking relationship with its local
    bank.
	 	(6.3)
    	To
    follow the instruction of the investors Bank to create a witness offshore bank account with the investor’s bank.
	 	(6.4)
    	To
    provide indemnity protection wrap cover based on investor’s recommendation as stated in Article 5

 

ARTICLE
7- STEPS FOR FUNDING.

 

	 	(7.1)	After
  both parties have signed the loan agreement, the investor shall cause their bank to contact the receiving team and advise them
  on how to open offshore online account with investor’s bank.
	 	(7.2)	The
  receiving team shall create an offshore bank account with the investor’s bank, this account shall be free of charge; however,
  if there are charges such as activation fee, account opening fee, the investor shall bear the cost for the little fees.

 

    	CONFIDENTIAL	 	3

     

    

 

	 	(7.3)	This
  account shall serve as a mediator account between the investor and the borrower, to enable the bank stand as witness and guardian institution
  against risk in favor of both parties.
	 	(7.4)	The
  investor’s bank shall credit the required funds in the borrower’s offshore online account,
	 	(7.5)	The
  Borrower having the license of Overseas Security Advisory Council and indemnity protection wrap
  cover through Global insurance incorporation shall have the right to make transfer to any part of the world by bank swift.

 

ARTICLE
(8) - DURATION OF THIS AGREEMENT

 

	 	(8.1)
    	This
    present Agreement shall become effective on the date signed below by the Financier Company and the Financed Company Representatives.
	 	(7.2)
    	The
    proof of acknowledgement of fund in account should be obtained from the receiving bank, as an evidence that the money has been received
    by The Financed Company to identify the validity and Starting Date of this Loan Agreement.

 

ARTICLE
(9) - COLLATERAL FOR LOAN

 

	 	(9.1)
    	If
    the collateral does not cover the total of the loan value, then borrower should cover any prorated difference through principal protected
    note (PPN) and indemnity capital protection wrap (WCP) of the value worth the still uncovered balance.
	 	(9.2)
    	Such
    notes will be issued to lender and signed by borrower for the tenure of the loan that can either called upon or case of defaulted
    on the loan by the borrower.

 

ARTICLE
(10) - EXPIRATION AND CANCELLATION

 

This
Agreement shall expire as provided in Article 9. It may also be terminated by either party for any of the following reasons and conditions:

 

	 	(10.1)
    	If
    after the signing of the contract, the fund agreed in this contract has not been availed into account of The Financed Company by
    the Financier for whatsoever reason, this contract will be automatically canceled and The Financed Company has rights or jurisdiction
    to claim any compensation or amount from the Financier in addition to the immediate refund of the processing fee. 
	 	(10.2)
    	This
    agreement between the two parties could be cancelled on the mutual terms and conditions agreed and specified.
	 	(10.3)
    	The
    Financier has the full rights and jurisdiction to cancel this agreement if The Financed Company fails to pay the agreed interest
    in 3 (three) consecutive years. The Financier is then empowered to retrieve Two Hundred Million U.S. Dollars (USD 200,000,000)
    from The Financed Company in addition to the interest for the three (3) consecutive years.
	 	(10.4)
    	Either
    party could cancel the agreement after settling his liabilities with the other party in the following way:

 

    	CONFIDENTIAL	 	4

     

    

 

	 	3.3	The
    Financier has the full rights to terminate the contract without any penalty or deduction if The Financed Company fails to use the
    aforementioned fund as stated in this agreement. The Financier is then empowered to retrieve the Two Hundred Million U.S. Dollars
    (USD 200,000,000) from The Financed Company in additional to the accrued interest.
	 	 	 
	 	3.4	The
    Financed Company can terminate this agreement at any time by paying back Two Hundred Million U.S. Dollars (USD 200,000,000)
    in addition to any accrued interest.

 

	 	(i)	Furthermore,
    the present agreement will be terminated in the event that either party ceases activities, liquidates or dissolves itself, demands
    a moratorium involving a large part of its assets, ceases to make payments, declares bankruptcy, and is declared in judicial adjustments
    or liquidation or become the object of any similar procedure, becomes the object of a judgment ordering it to cease activities, has
    its assets seized or has trustee or receiver appointed.

 

ARTICLE
(11) - COMPENSATION FOR EXPENSES

 

	 	3.1	(11.1)
    Both parties hereby agree that expenses as made by The Financed Company in the period of the release and transfer of Two Hundred
    Million U.S. Dollars (USD 200,000,000) will be deducted from the principal sum on completion of the transaction and transfers.
    These expenses are subject to verification and on proper confirmation by the Financier Company.
	 	 	(11.2)
    The Financed Company is then empowered to automatically deduct these expenses from the Principal fund released.

 

ARTICLE
(12) - CONFIDENTIALITY AND ANONYMOUSITY

 

The
parties hereto agree to respect the confidentiality nature of information which they receive during the term of this agreement, including
information concerning the sale, distribution, financial statement or bank or account information of the company or the signatory of
this agreement , and they undertake to keep such information strictly confidential during the said term, and after the termination or
non-renewal of the agreement.

 

ARTICLE
(12) - WAIVER

 

No
forbearance on the part of either party in enforcing its rights under this agreement, nor any renewal, extension, or rearrangement of
any payment or covenant to be performed by the other party hereunder shall constitute a waiver of any term of this agreement or a forfeiture
of any such right.

 

    	CONFIDENTIAL	 	5

     

    

 

ARTICLE
(13) – NOTICE

 

	 	13.1	Any
    notice demand, request, consent, approval, designation, specification or other communication given or made, or required to be given
    or made here under, shall be in writing and shall be hand-delivered or sent by registered air mail (postage fully prepaid) addressed
    to nominated address of the First and The Financed Company or to such other address of facsimile or telex number or person as either
    party may hereafter designate.
	 	13.2	A
    notice shall be deemed to have been given and received:
	 	 	(i)	When
    left at the appropriate address if hand-delivered or sent by registered mail;
	 	 	(ii)	When
    actually received if sent by facsimile or electronic data exchange; or
	 	 	(iii)	When
    dispatched and the correct answerback received if sent by telex or facsimile.

 

ARTICLE
(14) - FORCE MAJEURE

 

	 	(14.1)
    	Non-compliance
    by either the Financier or The Financed Company owing to Force Majeure with any of the said obligations shall not lead to the termination
    of this agreement provided either the Financier or The Financed Company has, as soon as possible under the circumstances, notified
    the other party in a letter sent by registered mail, of the reason for non-compliance. Pursuant to this clause, Force Majeure shall
    be deemed to be any unforeseeable and irresistible event provoked by an external cause, which constitutes an obstacle to the performance
    of an obligation, such as foreign or civil war, riots, acts of public enemies, general strikes, sabotage, piracy, fire, explosion,
    natural disasters and act of local government and parliamentary authority.
	 	(14.2)
    	Both
    parties agreed to interrupt the Agreement for the period of such event and until the activities resume normally.

 

ARTICLE
(15) - GOVERNING LAW AND JURIDICTION

 

	 	15.1	All
    difference concerning the validity, the interpretation or the performance of the present Agreement shall be finally settled under
    the rules of conciliation and arbitration of the international Chamber of Commerce by a single arbitrator appointed in accordance
    with the said rules. The seat of such arbitration shall be GENEVA, SWITZERLAND and the language of such arbitration shall be English.
	 	 	 
	 	15.2	This
    agreement shall in all respects be governed and construed in accordance with the law of the country that the agreement is executed,
    delivered and performed within.

 

    	CONFIDENTIAL	 	6

     

    

 

ARTICLE
(16) - MISCELLANEOUS PROVISIONS

 

	 	16.1	This
    Agreement may be amended only by a written document signed by both parties or by their duly authorized representatives.
	 	16.2	This
    agreement supersedes all prior agreements between the parties (written or oral) and is intended as a complete and exclusive statement
    of the terms of the Agreement between the parties.
	 	16.3	A
    signed facsimile/e-mail copy of the document may be accepted as original.
	 	16.4	All
    reference to a year or a month shall mean a calendar year and a period of thirty days respectively.
	 	16.5	In
    the event that this agreement is translated into any other language, the English Language version hereof shall govern. 

 

Executed
in this 17th day of January 2022

 

SIGNATURES:

 

	THE
    INVESTOR	 
	Arab
    League Investment Group	 
	 	 
	/s/
    Ahmed About Gheit	 
	Authorized
    Person: Ahmed Aboul Gheit	 
	Designation:
    Arab League Secretariat	 

 

	THE
    FINANCED COMPANY/BORROWER	 
	PHI
    GROUP, INC.	 
	 	 
	/s/
    Henry D. Fahman 	 
	Authorized
    Person: Henry Dack Fahman	 
	Designation:
    Chairman & Chief Executive Officer	 

 

    	CONFIDENTIAL	 	7Document

Execution Version

FOURTH AMENDMENT TO RIGHTS AGREEMENT

This Fourth Amendment to Rights Agreement (this “Amendment”) is made effective as of the 31st day of January, 2022. This Amendment is an amendment to the Rights Agreement, dated as of February 15, 2018 (the “2018 Rights Agreement”), between Luby’s, Inc., a Delaware corporation (the “Company”), and American Stock Transfer & Trust Company, LLC (the “Rights Agent”), as amended by the First Amendment to Rights Agreement, dated as of February 11, 2019 (the “First Amendment”), the Second Amendment to Rights Agreement, dated as of February 14, 2020, (the “Second Amendment,”), and the Third Amendment to Rights Agreement, dated as of February 14, 2021 (the “Third Amendment”, and together with the 2018 Rights Agreement and the First Amendment and the Second Amendment, the “Rights Agreement”). The Company and the Rights Agent are collectively referred to as the “Parties.” Capitalized terms used and not otherwise defined herein have the meanings ascribed to them in the Rights Agreement.

RECITALS

WHEREAS, the Parties entered into the 2018 Rights Agreement on February 15, 2018;

WHEREAS, on February 15, 2018, the Board of Directors of the Company (the “Board”) declared a dividend distribution of one purchase right (a “Right”) for each outstanding share of the Company’s common stock, par value $0.32 per share (the “Common Stock”), outstanding as of the close of business on February 28, 2018 (the “Record Date”), and authorized the issuance of one Right for each share of Common Stock that becomes outstanding between the Record Date and the earliest of the Distribution Date and the Expiration Date, and under certain other circumstances;

WHEREAS, the Parties entered into the First Amendment on February 11, 2019; WHEREAS, the Parties entered into the Second Amendment on February 14, 2020; WHEREAS, the Parties entered into the Third Amendment on February 14, 2021; WHEREAS, the Rights are set to expire at the close of business on February 15, 2022;
WHEREAS, the Board has determined that it is in the best interests of the Company and its stockholders to amend the Rights Agreement to cause the Rights to expire at the close of business on February 15, 2023;

WHEREAS, pursuant to Section 27 of the Rights Agreement, prior to the Stock Acquisition Date, the Company and the Rights Agent may supplement or amend any provision of the Rights Agreement, without the approval of any holders of Rights and the Rights Agent shall duly execute and deliver any supplement or amendment requested by the Company in writing provided that the Company has delivered to the Rights Agent a certificate from an appropriate officer of the Company that states that the proposed supplement or amendment complies with the terms of the Rights Agreement;

ACTIVE 277635016

WHEREAS, the Stock Acquisition Date has not yet occurred;

WHEREAS, the Company has delivered to the Rights Agent a certificate from an appropriate officer of the Company that states that this Amendment complies with the terms of the Rights Agreement and has directed the Rights Agent to amend the Rights Agreement as set forth herein.

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the Parties hereby agree as follows.

Section 1. Amendment to Rights Agreement. Paragraph (a) of Section 7 of the Rights Agreement is hereby deleted and replaced in its entirety with the following: “(a) Subject to Section 7(e), the registered holder of any Rights Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein including the restrictions on exercisability set forth in Section 7(c), Section 9(c), Section 11(a)(iii) and Section 23(a)) in whole or in part at any time after the Distribution Time upon surrender of the Rights Certificate, with the form of election to purchase and the certificate on the reverse side thereof properly completed and duly executed, to the Rights Agent at the principal office or offices of the Rights Agent designated for such purpose, together with payment of the aggregate Purchase Price with respect to the total number of shares of Common Stock (or other securities, cash or other assets, as the case may be) as to which such surrendered Rights are then exercisable, at or prior to the earliest of (i) the Close of Business on February 15, 2023 (the “Final Expiration Time”), (ii) the time at which the Rights are redeemed as provided in Section 23 or (iii) the time at which such Rights are exchanged pursuant to Section 24 (the earliest of (i), (ii) and (iii) being herein referred to as the “Expiration Time”).”

Section 2. Amendments to Form of Rights Certificate.

a)The first sentence of the first paragraph of the Form of Rights Certificate, which is attached as Exhibit A to the Rights Agreement, is hereby deleted and replaced in its entirety with the following: “NOT EXERCISABLE AFTER FEBRUARY 15, 2023 OR EARLIER IF REDEEMED OR EXCHANGED BY THE COMPANY.”

b)The first sentence of the second paragraph of the Form of Rights Certificate, which is attached as Exhibit A to the Rights Agreement, is hereby deleted and replaced in its entirety with the following: “This certifies that [    ], or registered assigns, is the registered owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to the terms, provisions and conditions of the Rights Agreement, dated as of February 15, 2018 (the “Rights Agreement”), between Luby’s, Inc., a Delaware corporation (the “Company”), and American Stock Transfer & Trust Company, LLC (the “Rights Agent”), to purchase from the Company at any time prior to 5:00 P.M. (New York City time) on February 15, 2023 at the office or offices of the Rights Agent designated for such purpose, or its successors as Rights Agent, half of a fully paid, nonassessable share of common stock, par value $0.32 per share (the “Common Stock”), of the Company, at a purchase price of $6.00 per one-half of a share of Common Stock (the “Purchase Price”), upon presentation and surrender of this Rights Certificate with the Form of Election to Purchase and related Certificate properly completed and duly executed.”

Section 3. Amendment to Summary of Rights to Purchase Common Stock. The section entitled Expiration Time in the Summary of Rights to Purchase Common Stock, which is attached as Exhibit B to the Rights Agreement, is hereby deleted and replaced in its entirety with the following: “Expiration Time. Unless earlier redeemed or exchanged by the Company as described below, the rights will expire at the close of business on February 15, 2023.”

Section 4. Remaining Terms; Controlling Agreement. All other provisions of the Rights Agreement that are not expressly amended hereby shall continue in full force and effect. From and after the execution and delivery of this Amendment, any references to the Rights Agreement in the Rights Agreement and other agreements or instruments shall be deemed to refer to the Rights Agreement as amended pursuant to this Amendment. In the event of any conflict between the terms of this Amendment and the Rights Agreement, this Amendment shall control.

Section 5. Severability. If any term, provision, covenant or restriction of this Amendment is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Amendment shall remain in full force and effect and shall in no way be affected, impaired or invalidated; provided, however, that, notwithstanding anything in this Amendment to the contrary, if any such term, provision, covenant or restriction is held by such court or authority to be invalid, void or unenforceable and the Board determines in its good faith judgment that severing the invalid language from this Amendment would adversely affect the purpose or effect of this Amendment, the right of redemption set forth in Section 23 the Rights Agreement shall be reinstated and shall not expire until the Close of Business on the tenth day following the date of such determination by the Board.

Section 6. Governing Law. This Amendment shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance with the laws of such state applicable to contracts to be made and performed entirely within such state.

Section 7. Descriptive Headings. Descriptive headings of the sections of this Amendment are inserted for convenience only and shall not control or affect the meaning or construction of any of the provisions hereof.

Section 8. Counterparts. This Amendment may be executed in one or more counterpart, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement.

[Remainder of Page Left Intentionally Blank]

IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first set forth above.

LUBY'S,INC.    /

By: --:::...+--=...:;;    
Na;μ : ohn Garilli
T)'tl ·  nterim President and Chief Executive
1    teer

AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC
By:      
Name:
Title:
			
	[Signature Page to Fourth Amendment to Rights Agreement]

IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first set forth above.

LUBY’S, INC.

By:     Name: John Garilli
Title: Interim President and Chief Executive Officer

AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC

By:     Name: Michael Legregin
			
	[Signature Page to Fourth Amendment to Rights Agreement]

Title:

Senior Vice President

			
	[Signature Page to Fourth Amendment to Rights Agreement]

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