Document:

f8k040312ex10iv_trig.htm

 

Exhibit 10.4

 

ADVISORY SERVICES AGREEMENT

 

This ADVISORY SERVICES AGREEMENT (“Agreement”) is made, entered into as of the 16th day of July, 2012 (the “Effective Date”), by and between TRIG Acquisition 1, Inc. (the “Company”), and TRIG Capital Group, LLC. (“TCG”).

 

W I T N E S S E T H:

 

WHEREAS, the Company desires to retain TCG to provide certain advisory services, and TCG is willing to be so engaged; and

 

WHEREAS, it is understood by the parties that the Company intends to conduct an alternative public offering, whereby the Company will acquire by share exchange all of the issued and outstanding capital stock and business of Grilled Cheese, Inc., whereby, Gilled Cheese, Inc. will become a wholly owned subsidiary of the Company (the “Merger”); and

 

NOW, THEREFORE, for and in consideration of the covenants set forth herein and the mutual benefits to be gained by the parties hereto, and other good and valuable consideration, the receipt and adequacy of which are now and forever acknowledged and confessed, the parties hereto hereby agree and intend to be legally bound as follows:

 

1.          Retention.  As of the date hereof, the Company hereby retains TCG, and TCG hereby agrees to be retained by the Company, to provide certain services to the Company.  Specifically, TCG shall provide foreign and domestic marketing services, management advice and support regarding operations, administrative services, assist with recruiting key personnel and business development as required by the Company, setting up franchise operations, assistance in the sale of franchises, assist management with day to day operations and public company compliance, and provide corporate and strategic advice.  The Company acknowledges that TCG shall have the right to engage third parties reasonably acceptable to the Company to assist it in its efforts to satisfy its obligations hereunder.  TCG agrees that the Company shall not be liable for any amounts owed to a third party engaged by TCG pursuant to the previous sentence.  TCG agrees to perform its services in accordance with all laws, rules and regulations which may be applicable to its services.

 

2.          Authorization.  Subject to the terms and conditions of this Agreement, the Company hereby appoints TCG to act on a best efforts basis as to the matters and projects it is instructed to undertake.  TCG hereby accepts such appointment, with it being expressly acknowledged that TCG is acting in the capacity of independent contractor and not as agent of the Company.

 

3.          Fees.  In consideration for performing the agreed upon services, TCG shall receive the following:

 

(i)          A warrant to purchase 1,800,000 shares of common stock of the Company, as of the closing date of the Merger, a copy of such warrant is attached hereto as Exhibit A; and

 

(ii)         A cash bonus of 10% of the purchase price of any franchises that TCG may sell on behalf of the Company and/or Grilled Cheese, Inc. for a period of 5 years.

 

4.          Term.  The term of this Agreement shall begin on the Effective Date and continue until such Agreement is terminated by the parties.  The Company may terminate this Agreement for cause upon thirty (30) days written notice.  For purposes of this Agreement, the Company shall have cause to terminate this Agreement if TCG materially breaches any of TCG's representations, warranties, covenants, obligations or duties under this Agreement and such breach is not cured by TCG within thirty (30) days after written notice from the Company.

 

  

  

  

 

5.          Confidentiality.  TCG agrees to keep the Company’s and its affiliates’ confidential information and data in confidence and TCG further agrees that it will not disclose to third parties any of such information or data or use any such information or data in any way either during the term of this Agreement or at any time thereafter, except in the performance of its obligations hereunder. TCG shall use the same degree of care in the protection of the Company’s and its affiliates’ confidential information and data as TCG uses with respect to its own confidential information and data, but not less than a reasonable level of care.  TCG agrees that, in the event this Section 5 is breached by TCG, said breach will give rise to irreparable damage to the Company or its affiliates inadequately compensable in damages.  In such event, the Company will be entitled to seek injunctive relief in any court of competent jurisdiction, in addition to any and all other legal or equitable rights and remedies existing in its favor, and TCG agrees that it will not claim as a defense thereto that the Company has an adequate remedy at law or require the posting of bond therefor.

 

6.          Indemnification.

 

(a)         The Company shall indemnify TCG against all claims, losses, damages and liabilities (collectively, “Claims”), arising out of or relating to the engagement of TCG pursuant to this Agreement (subject to Section 6(c) below), including  legal and other expenses reasonably incurred in connection with defending any Claims,  provided that the Company shall not be liable in any such case where the Claim arises out of or is related to any breach of TCG’s covenants and agreements contained in this Agreement or TCG’s gross negligence or willful misconduct.

(b)         TCG shall indemnify the Company against all Claims (subject to Section 6(c) below), arising out of or based on TCG’s breach of it covenants and agreements contained in this Agreement or TCG’s gross negligence or willful misconduct in connection with this Agreement, and shall reimburse the Company for legal and other expenses reasonably incurred in connection with defending any such Claim as incurred.

 

(c)          Each party entitled to indemnification under this Section 6 (the “Indemnified Party”) shall give notice to the party required to provide indemnification (the “Indemnifying Party”) promptly after such Indemnified Party has actual knowledge of any claim as to which indemnity may be sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the Indemnifying Party, who shall conduct the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not unreasonably be withheld or delayed), and the Indemnified Party may participate in such defense with its own counsel at such Indemnified Party’s expense, and provided further that the failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Agreement, unless such failure is materially prejudicial to the Indemnifying Party in defending such claim or litigation.  An Indemnifying Party shall not be liable for any settlement of an action or claim effected without its written consent (which consent shall not be unreasonably withheld or delayed).

 

7.          Independent Contractor. Both the Company and TCG agree that TCG will act as an independent contractor in the performance of its duties under this Agreement.  Accordingly, among other matters relating to such relationship between the parties, TCG shall: (i) have no power, right or authority to bind or act on behalf of the Company in any manner and (ii) be responsible for payment of all taxes, fees, licenses and or registrations including international or national federal, state and local taxes social security fees and any other governmental payments or fees that might be required, whether federal, state or local arising directly or indirectly out of TCG’s activities in accordance with this Agreement.

 

  

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8.          Governing Law.  This Agreement shall be governed by and construed in all respects in accordance with the laws of New York without giving effect to the principles of conflicts of law. The parties hereto hereby submit to the exclusive jurisdiction of the courts situated in New York, New York, in relation to any matters arising under this Agreement.

 

9.          Miscellaneous.  This Agreement supersedes any previous oral or written agreement between the parties in relation to the matters dealt with herein and represents the entire understanding between the parties in relation thereto.  This Agreement shall not be amended, modified or supplemented unless such amendment, modification or supplement shall be expressly agreed to in writing by a duly authorized representative of each party.  No failure by either party to assert any right of such party hereunder, no matter how long such failure may continue after a default by the other party, shall constitute a waiver of such right.  If any provision of this Agreement shall be invalid or unenforceable to any extent or in any application, then the remainder of this Agreement and of such provision, except to such extent or in such application, shall not be affected thereby, and each and every provision of this Agreement shall be valid and enforced to the fullest extent and in the broadest application permitted by law.  The rights of any party shall not be prejudiced or restricted by any indulgence or forbearance extended to the other party and no waiver by any party with respect to any breach shall operate as a waiver in respect of any subsequent breach.  None of the parties shall assign or transfer or purport to assign or transfer any of its rights or obligations hereunder without the prior written consent of the other party.  This Agreement shall inure for the benefit of and be binding on the respective successors in title or permitted assign of each party.

 

10.         Captions.  The Section headings appearing in this Agreement are for convenience of reference only and are not intended, to any extent and for any purpose, to limit or define the text of any Section hereof.

 

11.         Counterparts and Execution.  This Agreement may be executed in multiple counterparts and by facsimile transmission, each of which shall be deemed an original Agreement and all of which shall constitute one and the same Agreement between each of the parties hereto on the dates respectively indicated in the signatures of the parties, notwithstanding that all of the parties are not signatories to the original or the same counterpart. Copies of this Agreement or signature pages bearing original signatures, and executed copies of this Agreement or signature pages delivered by telefax, facsimile, or e-mail transmission of an image file format document shall, in each such instance, be deemed to be, and shall constitute and be treated as, an original signed document or counterpart, as applicable.

 

12.          Notices.  All notices and other communications that are required to be or may be given pursuant to this Agreement shall be in writing and shall be deemed to have been duly given if delivered in person or by courier or mailed by registered or certified mail (postage prepaid, return receipt requested) to the relevant party hereto at the following addresses or sent by facsimile to the following numbers:

 

Company:              Trig Acquisition 1, Inc.

641 Lexington Avenue, Suite 1526

New York, New York 10022

Attention: A.J. Cervantes

 

  

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with a copy to:

 

Ellenoff Grossman & Schole, LLP

150 E. 42nd Street

New York, NY 10017

Attention:  Barry I. Grossman, Esq.

Fax: (212) 370-7889

 

TCG:                       Trig Capital Group, LLC

641 Lexington Avenue, Suite 1526

New York, New York 10022

Attention: A.J. Cervantes

 

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

 

	 	
TRIG ACQUISITION 1, INC.

	 
	 	 	 	 
	
 

	 	 
	 	
Name:

	 	 
	 	
Title:

	 	 
	 	 	 	 
	 	
TRIG CAPITAL GROUP, LLC

	 
	 	 	 	 
	 	 	 
	 	
Name:

	 
	 	
Title: Member

	 

 

 

4f8k040312ex10v_trig.htm

 

Exhibit 10.5

 

 

TRIG Acquisition 1, Inc.

July 16, 2012

The following sets forth the agreement (this “Agreement”) for the engagement of Trilogy Capital Partners, Inc., (“Trilogy”) by TRIG Acquisition 1, Inc. (d/b/a The Grilled Cheese Truck) (“TRIG Acquisition 1” or the “Company”):

	
Term and Termination

	
Eighteen months, commencing on July 16, 2012 (the “Initial Term”), and month to month thereafter, terminable by either party upon 30 days prior written notice.  The Initial Term shall commence on the date set forth above (the “Commencement Date”).

 

	
Objective

	
The development and implementation of a proactive financial communications program designed to increase the investor awareness of the Company in the investment community and generate a significant increase in liquidity.

 

	
The Services

	
Trilogy will work with the Company to structure and implement a marketing program designed to create extensive financial market and investor awareness for the Company to drive long-term shareholder support and assist in generating a market capitalization consistent with the Company’s intrinsic financial values.  The core drivers of the program will be to provide information to potential institutional and retail investors about the Company and its business to stimulate interest in investment in the Company’s stock. The program will utilize technology-driven communications to attract additional long term investors and to create additional opportunities in M&A and Business Development.  As share price is affected by various factors unrelated to Trilogy’s efforts, Trilogy can give no assurance that the marketing program will result in an increase in the Company’s stock price.

 

 

  

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Current law provides that during any period in which the Company is in “registration” for a public offering of securities under the Securities Act of 1933, and during the distribution of such securities, the Company’s investor relations and marketing efforts must be severely limited.  To ensure that Trilogy does not violate this requirement, the Company will advise Trilogy in writing whenever a registration statement is filed or a registration is pending for any of the Company’s securities.  It will be the responsibility of the Company (with the advice of its securities counsel) to determine and advise Trilogy as to what investor relations and financial marketing efforts are permissible and not permissible during such periods.  Trilogy will advise the Company in advance of any proposed investor relations or financial marketing efforts and follow the direction of the Company and its securities counsel with regard thereto. Unless the Company advises Trilogy to the contrary, Trilogy will proceed with any planned marketing program.

 

	
IR Documents

 

 

 

 

 

 

 

 

 

 

	
Trilogy shall assist the Company in preparing and disseminating investor relations documents, materials and Company presentations (“IR Documents”), including press releases, online communications and the Company’s website.  The Company assumes full responsibility for the accuracy and completeness of all IR Documents and for their compliance with applicable laws, rules and regulations.

 

Trilogy shall have no obligation or duty to verify the accuracy or completeness of the IR Documents or their compliance with applicable law.  Trilogy shall have the right to refuse to release or publish or participate in the release or publication of any IR Document that has not been approved in writing by the Company or that it reasonably believes to contain a misstatement of material fact, to omit to state any material fact or to otherwise not fully comply with applicable law.

 

Trilogy hereby represents that it has in place policies and procedures relating to, and addressing, with the commercially reasonable intent to ensure compliance with, applicable securities laws, rules and regulations.

 

	Legal Compliance	Trilogy further acknowledges that by the very nature of its relationship with the Company, it will, from time to time, have knowledge of or access to material non-public information. Trilogy will not make any purchases or sales in the stock of the Company based on such information.  Trilogy will utilize its commercially reasonable efforts to safeguard and prevent the dissemination of such information to third parties unless authorized in writing by the Company to do so as may be necessary in the performance of its Services under this Agreement. 
 

Trilogy will not, in any way, utilize or otherwise include such information, in actual form or in substantive content, in its analysis for, preparation of or release of any of Trilogy literature or other communication(s) relating to the Company, including, but not limited to: Press Releases, letters to investors and telephone or other personal communication(s) with potential or current investors.

 

 

  

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Fees

	
The Company agrees to pay to Trilogy a fee (the “Base Fee”) at the rate of Ten Thousand Dollars ($10,000) per month.

 

If the commencement date is not on the first day of the month, the Company shall pay to Trilogy a pro rata share of the monthly fee for the remainder of such month (based on a 30-day month) plus the monthly fee for the following month.  Subsequent payments shall be due on the first day of each month thereafter (including payments for services after the Initial Term).

 

All payments shall be made by wire transfer of funds to such account as may be designated by Trilogy.

 

Wiring Instructions are as follows:

 

Trilogy Capital Partners, Inc.

Signature Bank New York

Private Client Group

261 Madison Avenue

New York, NY 10016

Account No.: 1500565515

ABA No.:  026013576

 

As further material inducement for Trilogy in the execution of its services, the Company will pay to Trilogy a success fee of Eighty Thousand Dollars ($80,000) on completion of the Company’s anticipated Alternative Public Offering.

 

	
Marketing Plan

	
Tier 1.

 

In accordance with the Tier 1 marketing plan to be provided to the Company, Trilogy will work in conjunction with the Company’s management and securities counsel.

 

The Tier 1 marketing plan includes the following:

· Campaign Planning, Development and Execution

· Press Announcements: Drafting, Approval and Distribution

· Internal Database Development and Management

· Image Analysis:  Recommendations and Implementation

· Messaging:  Institutional and Retail

· Website Overhaul including installation and maintenance of auto IR program (in conjunction with third party providers)

· Media including Investor Fact Sheets, White Papers, Interactives and PowerPoints

 

 

  

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Tier 2.

 

The Tier 2 financial marketing program provided by Trilogy is highly proactive and requires the Company to incur certain third party marketing costs.  Such costs shall, at Trilogy’s election, be invoiced directly to the Company or paid by Trilogy and reimbursed by the Company. Trilogy will not incur these costs on behalf of the Company except with the approval of the Company or pursuant to a budget approved by the Company.  The Company understands that prompt payment of these costs is vital to the on-going investor relations program.

 

The Tier 2 marketing plan includes all of Tier 1 and additionally:

· Direct Mail: Institutional including fund managers, Shareholders, Media and the Company’s relationship universe

· Public Relations

· Capital Conferences

· Research Reports (CFA compliant) and broad distribution

· Market Commentators

· Financial Newsletters

· Third Party Investor Databases

· Online presentations: Drafting, Production and Distribution

 

	
Indemnification

	
The Company unconditionally, absolutely and irrevocably agrees to and shall indemnify and hold harmless Trilogy and its past, present and future directors, officers, affiliates, counsel, shareholders, employees, agents, representatives, contractors, successors and assigns (Trilogy and such persons are collectively referred to as the “Indemnified Persons”) from and against any and all losses, claims, costs, expenses, liabilities and damages (or actions in respect thereof) arising out of or related to this Agreement, the performance of services pursuant to the Agreement, and any actions taken or omitted to be taken by an Indemnified Party in connection with this Agreement (“Indemnified Claim”).  Without limiting the generality of the foregoing, such indemnification shall cover losses, claims, costs, expenses, liabilities and damages imposed on or incurred by the Indemnified Persons, directly or indirectly, relating to, resulting from, or arising out of any actual or alleged misstatement of fact or omission of fact, or any actual or alleged inaccuracy in any information provided or approved by the Company in connection with the engagement, including any actual or alleged misstatement, omission or inaccuracy in any SEC filing, press release, website, marketing material or other document, or oral presentation or webcast, whether or not the Indemnified Persons relied thereon or had knowledge thereof.

 

 

 

  

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Terms and Conditions

 

	
The Company agrees to all of the Terms and Conditions that are attached hereto and are deemed to be part of this Agreement.

 

 

Agreed and Accepted:

	
 

TRIG Acquisition 1, Inc.

 

By______________________________

 

Name __________________________

 

Title ____________________________

	
 

Trilogy Capital Partners, Inc.

 

By_____________________________

 

Name __________________________

 

Title____________________________

 

 

  

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Terms and Conditions of Letter of Engagement

 

“Confidential Information” means all technical, commercial, financial or other information concerning the business, affairs and operations of the Company and its affiliates and which the Company or its agents or representatives have provided or will provide to Trilogy in connection with its services hereunder whether provided in writing, electronically or verbally.  Notwithstanding the foregoing, the following will not constitute "Confidential Information" for purposes of this Agreement: (i) information which is available in the public domain or marketplace; (ii) information which after disclosure to Trilogy by the Company becomes part of the public domain by publication or otherwise, except by breach by Trilogy of the terms of this Agreement; (iii) information which was rightfully in the possession of Trilogy at the time of disclosure to Trilogy by the Company; and (iv) information which is rightfully received by Trilogy from a third party who is not prohibited from transmitting the information to Trilogy by a contractual, legal or fiduciary obligation to the Company.

 

Without the consent of the Company, Trilogy may disclose Confidential Information pursuant to legal process or as otherwise required by law, to enforce its rights under this Agreement, and/or to defend itself or any of its officers, directors, agents or affiliates in connection any claim, action or proceeding arising out of or related to this Agreement, the performance of services pursuant to the Agreement, or any actions taken or omitted to be taken by an Indemnified Party in connection with this Agreement.

1.   Corporate Obligations. The obligations of Trilogy under this Agreement are solely corporate obligations, and no officer, director, employee, agent, shareholder or controlling person of Trilogy shall be subject to any personal liability whatsoever to any person, nor will any such claim be asserted by or on behalf of any other party to this Agreement.

 

2.   Limitation of Liability.  In no event shall Trilogy be liable for consequential damages, even if it has been advised thereof.  In no event shall Trilogy’s liability exceed the fees paid to it pursuant to this Agreement.

3.   Additional Services.  If Trilogy is called upon to render services directly or indirectly relating to the subject matter of this Agreement beyond the services contemplated above (including, but not limited to, production of documents, answering interrogatories, giving depositions, giving expert or other testimony, whether by agreement, subpoena or otherwise), the Company shall pay to Trilogy a reasonable hourly rate for the persons involved for the time expended in rendering such services, including, but not limited to, time for meetings, conferences, preparation and travel, and all related costs and expenses and the reasonable legal fees and expenses of Trilogy’s counsel.  This Section is not intended to address circumstances in which Trilogy has a claim for indemnification, which circumstances are addressed by Exhibit A to this Agreement.

 

 

  

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4.          Survival of Certain Provisions.  The Sections of this Agreement entitled “Indemnification”, “Corporate Obligations,” “Limitation of Liability,” “Additional Services,” “Attorneys’ Fees” and “Governing Law” shall survive any termination of this Agreement and Trilogy’s engagement pursuant to this Agreement.  In addition, such termination shall not terminate Trilogy’s right to compensation accrued through the date of termination and for reimbursement of allowed expenses (including third party marketing costs).  Any purported termination of this Agreement by the Company prior to the end of the Initial Term other than for material breach or default under “Term and Termination” above, or any termination by Trilogy as a result of material breach or default by the Company under “Term and Termination” above, shall not terminate Trilogy’s right to the entire Base Fee.

6.           Services/Reimbursable Expenses.  The Base Fee and other monthly fees paid to Trilogy under this Agreement will cover all services rendered by Trilogy and Trilogy personnel.  Travel and entertainment costs for Trilogy personnel, in addition to certain third-party costs, will be borne and paid or reimbursed by the Company.  Trilogy will provide reasonable documentation to support reimbursement claims.  Trilogy will not incur any individual reimbursable cost of $500 or more that is not included in the approved marketing budget without the written approval from the Company.

7.           Attorneys’ Fees.  If any action or proceeding is brought to enforce or interpret any provision of this Agreement, the prevailing party shall be entitled to recover as an element of its costs, and not its damages, reasonable attorneys’ fees to be fixed by the court.

 

8.           Governing Law. This Agreement is made and entered into at New York City, New York, and shall be governed by New York law without giving effect to the principles of conflicts of law thereof.  The invalidity of any provision shall not affect the remaining provisions.  The parties hereby consent to the exclusive jurisdiction, venue and forum of any state or federal court in New York City, New York with respect to any action, which, in whole or in part, in any manner arises under or relates to this Agreement.

 

 

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