Document:

Exhibit
10.2

 

May
6, 2021

 

Via
Electronic Mail

 

Staffing
360 Solutions, Inc.

3A
London Wall Buildings

London
Wall

London
EC2M 5SY

United
Kingdom

Attn:
Brendan Flood, Chairman and Chief Executive Officer

 

	 	Re:	Side Letter Agreement regarding Amendment to NPA 

 

Ladies
and Gentlemen:

 

Reference
is hereby made to that certain (a) Second Amended and Restated Note Purchase Agreement, dated as of October 26, 2020 (as amended, amended
and restated, supplemented or otherwise modified from time to time, the “Purchase Agreement”), among Jackson
Investment Group, LLC (“Purchaser”), Staffing 360 Solutions, Inc., a Delaware corporation (the “Company”),
and certain subsidiaries of the Company signatory thereto (the “Subsidiary Guarantors”). Capitalized terms
used in this letter agreement (this “Agreement”) and not otherwise defined shall have the meanings ascribed
to such terms in the Purchase Agreement.

 

A.
Whereas, Purchaser and the Company intend to enter into that certain Exchange Agreement dated as of the date hereof (the “Exchange
Agreement”), and in connection therewith desire to amend certain provisions of the Purchase Agreement in accordance with
the terms hereof.

 

B.
Whereas, it is a condition precedent to the effectiveness of the Exchange Agreement that this Agreement be executed and delivered by
the Company and each Subsidiary Guarantor to Purchaser.

 

NOW
THEREFORE, in order to induce Purchaser to enter into the Exchange Agreement, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.
Amendments to Purchase Agreement. Subject to the satisfaction of the conditions precedent in Section 2 hereof, the parties
hereto agree that the Purchase Agreement is hereby amended effective as of the date of this Agreement as follows:

 

(a)
the defined terms “Amendment No. 1 to the Certificate of Designation” and “Amendment No. 2 to the Certificate of Designation”
in Section 1.1 of the Purchase Agreement are hereby deleted.

 

(b)
the definition of “Certificate of Designation” in Section 1.1 of the Purchase Agreement is hereby amended and restated
in its entirety to read as follows:

 

“Certificate
of Designation” means the Certificate of Designation creating the Series G Preferred Stock and the Series G-1 Preferred Stock,
in the form of Exhibit A to the Preferred Exchange Agreement, as the same may hereafter be further amended, restated or otherwise modified;
provided that any such further amendments, restatements or other modifications to such Certificate of Designation in order to
be effective and to be permitted hereunder must be consented to in writing by the Purchaser, which consent may be granted or denied by
the Purchaser in its sole discretion.

 

    	 

     

    

 

Staffing
360 Solutions, Inc.

May
6, 2021

Page
2

 

(c)
The defined term “Series E Preferred Stock” in Section 1.1 of the Purchase Agreement is hereby amended and restated
in its entirety to read as follows:

 

“Series
G Preferred Stock” shall mean the Series G Convertible Preferred Stock of the Company.

 

(d)
The defined term “Series E-1 Preferred Stock” in Section 1.1 of the Purchase Agreement is hereby amended and restated
in its entirety to read as follows:

 

“Series
G-1 Preferred Stock” shall mean the Series G-1 Convertible Preferred Stock of the Company.

 

(e)
All references to Series E Preferred Stock in the Purchase Agreement shall be deemed to refer to the Series G Preferred Stock, and all
references to Series E-1 Preferred Stock in the Purchase Agreement shall be deemed to refer to the Series G-1 Preferred Stock.

 

(f)
All references to the term PIK Fee Shares appearing in Section 7.14 of the Purchase Agreement shall be deemed to also include
the PIK Fee Shares (as such term is defined in the Prior Certificate of Designation) and the PIK Fee Shares (as such term is defined
in the Certificate of Designation). The second sentence of Section 7.14(a) of the Purchase Agreement is hereby amended and restated
in its entirety to read as follows:

 

“The
Company further covenants and agrees that (i) the PIK Fee Shares to be issued pursuant to this Agreement, (ii) the PIK Fee Shares (as
such term is defined in the Prior Certificate of Designation) previously issued by the Company to Purchaser in connection with the Prior
Certificate of Designation, and (iii) the PIK Fee Shares (as such term is defined in the Certificate of Designation) will be included
in a new resale registration statement, which (A) in the case of the immediately preceding clauses (i) and (ii) shall be filed by the
Company with the SEC at the Company’s sole expense not later than sixty (60) days after the Closing Date, and (B) in the case of
the immediately preceding clause (iii) shall be filed by the Company with the SEC at the Company’s sole expense not later than
sixty (60) days after the date of the Preferred Exchange Agreement.”

 

(g)
Section 1.1 of the Purchase Agreement is hereby amended to add in alphabetical order the following new definitions:

 

“Preferred
Exchange Agreement” means the Exchange Agreement as such term is defined in that certain Side Letter Amendment Agreement dated
as of May 6, 2021, by and among Purchaser, the Company and the Guarantors.

 

“Prior
Certificate of Designation” means that certain Certificate of Designation creating the Series E Preferred Stock and the Series
E-1 Preferred Stock of the Company, in the form of Exhibit B to the Debt Exchange Agreement, as amended prior to the date of the Preferred
Exchange Agreement.

 

    	 

     

    

 

Staffing
360 Solutions, Inc.

May
6, 2021

Page
3

 

2.
Conditions to Effectiveness. This Agreement and the amendments set forth in Section 1 hereof shall be effective as of the
date of this Agreement upon the satisfaction of the following conditions precedent: (a) the parties hereto shall have duly executed and
delivered this Agreement, and (b) the Company and Purchaser shall have executed and delivered the Preferred Exchange Agreement.

 

3.
Miscellaneous. Each of the Company and the Subsidiary Guarantors represents and warrants to Purchaser that the terms of this Agreement
do not violate (i) any of its organizational documents or (ii) any material contract to which it is a party (except in the case of (ii),
such as could not have or reasonably be expected to result in a Material Adverse Effect), and all consents and approvals required to
enter into this Agreement have been obtained (or will be obtained by the effective time of this Agreement). The foregoing amendments
set forth in Section 1 above relate solely to the specific matters addressed above and shall not be construed to constitute a
consent, waiver, or amendment in respect of any other matter or to any other Transaction Document, whether now or hereafter existing.
This Agreement shall not modify or limit in any manner the obligations of the Company under the Purchase Agreement or any other Transaction
Document, except for the amendments to the extent expressly set forth above in Section 1 of this Agreement, and the Purchase Agreement,
the Security Agreement, the Pledge Agreement and the other Transaction Documents shall remain in full force and effect in accordance
with their terms after giving effect to this Agreement. This Agreement shall constitute a Note Document and a Transaction Document. Each
of the Company and the Subsidiary Guarantors hereby reaffirms (a) all of its obligations under the Transaction Documents to which it
is a party, including, without limitation, all of the outstanding indebtedness owing under the Purchase Agreement and the Senior Notes,
and agrees that this Agreement, and all documents, agreements and instruments executed in connection herewith and therewith and the consummation
of the transactions contemplated hereby and thereby do not operate to reduce or discharge any Obligor’s obligations under such
Transaction Documents or constitute a novation of any indebtedness or other obligations under any Transaction Documents, and (b) the
continuing security interests in its respective assets granted in favor of Purchaser pursuant to Security Agreement, the Pledge Agreement
and each of the other Security Documents. This Agreement may be executed by one or more of the parties to this Agreement on any number
of separate counterparts (including by telecopy or other electronic transmissions, e.g. .pdf), and all of said counterparts taken together
shall be deemed to constitute one and the same instrument. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICTS OF LAWS). THE TERMS OF SECTIONS 10.12 AND 10.13
OF THE PURCHASE AGREEMENT WITH RESPECT TO SUBMISSION TO JURISDICTION, CONSENT TO SERVICE OF PROCESS, VENUE AND WAIVER OF JURY TRIAL ARE
INCORPORATED HEREIN BY REFERENCE, MUTATIS MUTANDIS, AND THE PARTIES HERETO AGREE TO SUCH TERMS.

 

[Remainder
of page intentionally blank; next page is signature page]

 

    	 

     

    

 

Staffing
360 Solutions, Inc.

May
6, 2021

Page
4

 

	 	Sincerely,
	 	 	 
	 	Jackson
    Investment Group, LLC
	 	 	 
	 	By:
    	/s/
    Richard L. Jackson
	 	Name:	Richard
    L. Jackson
	 	Title:	Chief
    Executive Officer

 

    	 

     

    

 

Staffing
360 Solutions, Inc.

May
6, 2021

Page
5

 

	 	ACCEPTED AND AGREED TO:
	 	 	 
	 	COMPANY:
	 	 
	 	STaffing 360 solutions, inc.
	 	 	 
	 	By:	/s/
    Brendan Flood
	 	Name:	Brendan
    Flood
	 	Title:	Chairman
    and Chief Executive Officer
	 		
	 	SUBSIDIARY GUARANTORS:
	 	 	 
	 	FARO RECRUITMENT AMERICA, INC. 
	 	 	 
	 	By:	/s/
    Brendan Flood
	 	Name:	Brendan
    Flood
	 	Title:	President
    and Chief Executive Officer
	 	 	 
	 	MONROE STAFFING SERVICES, LLC
	 	 	 
	 	By:	/s/
    Brendan Flood
	 	Name:	Brendan
    Flood
	 	Title:	President
    and Chief Executive Officer

 

    	 

     

    

 

Staffing
360 Solutions, Inc.

May
6, 2021

Page
6

 

	 	STaffing
    360 GEORGIA, LLC
    
	 	 	 
	 	By:	/s/
    Brendan Flood
	 	Name:	Brendan
    Flood
	 	Title:	President
    and Chief Executive Officer 
	 	 	 
	 	LIGHTHOUSE PLACEMENT SERVICES, INC. 
	 	 	 
	 	By:	/s/
    Brendan Flood
	 	Name:	Brendan
    Flood
	 	Title:	President
	 	 	 
	 	KEY RESOURCES, INC. 
	 	 	 
	 	By:	/s/
    Brendan Flood
	 	Name:	Brendan
    Flood
	 	Title:	President
    and Chief Executive OfficerExhibit
10.3

 

May
6, 2021

 

Via
Electronic Mail

 

Staffing
360 Solutions, Inc.

3A
London Wall Buildings

London
Wall

London
EC2M 5SY

United
Kingdom

Attn:
Brendan Flood, Chairman and Chief Executive Officer

 

	 	Re:	Limited Waiver and Agreement 

 

Ladies
and Gentlemen:

 

Reference
is made to the Limited Waiver and Agreement (the “Agreement”) dated February 5, 2021, among Jackson Investment
Group, LLC (“JIG”) and Staffing 360 Solutions, Inc., a Delaware corporation (the “Company”).
Capitalized terms used herein but not otherwise defined herein shall have the respective meanings given such terms in the Agreement.

 

By
this letter JIG hereby agrees that the period for which it agreed not to exercise Convertible Securities in the Agreement is extended
to June 30, 2021. In consideration of such extension, the Company agrees that it will take all actions necessary to fulfill its obligations
set forth in the Agreement to increase the Company’s authorized and unissued shares of common stock as soon as possible, and in
any event by not later than June 30, 2021.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Limited Waiver and Agreement to be duly executed by their duly authorized representatives
as of the day and year hereof.

 

	 	Sincerely,
	 	 	 
	 	Jackson
    Investment Group, LLC
	 	 	 
	 	By:	/s/
    Richard L. Jackson
	 	Name:	Richard
    L. Jackson
	 	Title:	Chief
    Executive Officer
	 	 	 
	 	Staffing
    360 Solutions, Inc.
	 	 	 
	 	By:	/s/
    Brendan Flood
	 	Name:	Brendan
    Flood
	 	Title:	Chairman
    and Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00327-of-00352.parquet"}]]