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| PaloAltoWashington | ||
June 30, 2017
GigglesN’Hugs
3222GlendaleGalleriaWay
Glendale,CA91210
| Attention: | JoeyParsi |
| Chief Executive Officer |
Gentlemen:
Thisistoconfirmouragreement(the“Agreement”)thateffectiveasofthedatehereofMacKenziePartners,Inc.(“MacKenziePartners”)hasbeenengaged by Giggles N’ Hugs(the“Client”)forInformationAgentservicesinconnectionwithitsproposedsubscriptionrightsoffering(the“Assignment”).MacKenziewillperformcustomaryservicesfortheClientasinformationagent,including:providingstrategicadviceregardingtheoverallsubscriptionrightsoffercampaign;reviewingthesubscriptionrightsoffermaterials;reservingandplacinganyadvertisement(asneeded)topublicizetherightsoffer;coordinationwiththefinancialprinterontheprinting,deliveryanddistributionofthesubscriptionrightsoffermaterials,providingfeedbackandanalysisontheprogressoftherightsoffer;recommendingandreviewingvariousstrategiesthroughoutthecampaign;providinginformationtoshareholdersregardingthesubscriptionrightsofferingand,providingsuchotherservicesasmayberequestedfromtime-to-time bytheClient(collectivelythe“Services”).
TheAssignmentshallcontinueuntiltheexpiration,terminationorcancellationoftheAssignment bytheClientorasagreed bytheParties.InconsiderationoftheServicesandtheotherconsiderationtobeprovidedhereunder,thesufficiencyofwhichisexpresslyacknowledged,thePartiesagreeasfollows:
| 1. | TheClientshallpay afeeof$10,000;suchfeewillbepaidwithin30days oftheconclusionoftheAssignment.Asanincentivefeetheclientagreestopayanadditional$5,000ifparticipationlevelsare75%oftargetedparticipationand$7,500.ifparticipationlevelsare100%oftargetedparticipation. | |
| 2. | TheClientshallpayMacKenziePartners’reasonableexpensesinconnectionwiththeServicesand,ifapplicablewhichshallinclude,butnotbelimitedtochargesandcostsrelatingto:inboundandoutboundtelephonecampaign;copyingandprinting;financialadvertising;electronicnewsdistribution;wire-serviceaccess;dataprocessing;andmailing,courierandotherdeliverycharges. |
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| 3. | The Client representsand warrants thatall informationanddata that it provides to MacKenziePartners inconnection with the Assignment, whether in oral, written or other form (the“ProvidedInformation”), will be true,accurateandcomplete inall material respects to the best of the Client’s knowledge.The Client furtheragrees that, inconnection with the provision of theServices, MacKenziePartners isentitled to rely upon theProvidedInformation,as wellasany other information ordata received inconnection with the Assignmentfrom third-partyadvisorsandconsultants to the Client,as being true,accurateandcomplete inall material respects. The Clientagrees to reviewcarefullyall materials, ifany, prepared for it by MacKenziePartners inconnection with theServicesand topromptlyadvise MacKenziePartners if, in the Client’sreasonable opinion,anyof the materialsare materially false, inaccurate or incomplete. | |
| 4. | MacKenziePartners will hold inconfidenceand will not use or discloseto third partiesany of theProvidedInformation other thanProvidedInformation that was publicat the time the Client provided it toMacKenziePartnersorProvidedInformation thatthereafter becomes public through no disclosureby MacKenziePartners. Notwithstanding the foregoing, MacKenziePartners shall beentitled to discloseanyandall of theProvidedInformation in response toany subpoena, demand for documents or other request for information madebyany plaintiff inanylegalaction orproceedingand/orbyanygovernmentagency inconnection withany inquiry or investigation (collectively,an“Information Demand”). MacKenziePartners shall use reasonableefforts to notify the Client of its receipt ofanInformation Demandprior to producing the ProvidedInformationinresponse thereto. | |
| 5. | The Client shall indemnifyand holdMacKenziePartnersandall of its directors,officers,employeesandagents harmlessagainstallclaims,expenses, losses, damages, liabilitiesand/or judgments ofany kind whatsoever thatarise out of or relate to the Assignment or theServices (collectively, the“Losses”),except foranyLosses thatare held in a final judicial decisionby acourt ofcompetent jurisdiction from which no right ofappealexists to have resulted from willful misconduct or bad faith onthe part ofMacKenziePartners. MacKenziePartners shall not be liable to the Client orany director, officer,employee,agent, parent, subsidiary,affiliate, predecessor or successor thereof foranyamount inexcess of the fees paidby the Client to MacKenziePartners pursuant to this Agreement.Neither party shall be liable to the other orany director,officer,employee,agent,parent,subsidiary,affiliate, predecessor or successor thereof foranyconsequential, special, incidental, punitive orexemplary damages ofanytype whatsoever inconnection with this Agreement. The provisions of thisParagraph 5 shall survive indefinitely thecompletion or termination of theServices or the Assignment. |
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| 6. | MacKenziePartners shall have the right, in its sole discretion, toretain its own legalcounsel to represent its interests inconnection withanyclaim, lawsuit, investigation,administrative proceeding, subpoena or other request for documents or testimony, orany other legalaction or proceedingarisingout of or relating inany way to the Assignment or theServices (collectively, the“LegalProceedings”). The Client shall pay to MacKenziePartners the reasonableattorneys’ feesandcosts incurredby MacKenziePartners inconnection withallLegalProceedingscommencedbyanyentity or individual. MacKenziePartners shallalso have the option, in its sole discretion, topermit the Client’slegalcounsel toassume the representation of MacKenziePartners inanyof theLegalProceedings, provided that neither MacKenziePartners nor the Clientconcludes thatanactual or potentialconflict of interest would becreatedby such representation. Theprovisions of thisParagraph 6 shall survive indefinitely thecompletion or termination of theServices. | |
| 7. | This Agreement shall begovernedbyandconstrued inaccordance with the laws of theState of New York, without regard toanyapplicableconflict-of-laws orchoice-of-law rules or principles. | |
| 8. | In the unlikelyevent of a disputearising under orrelating inany way whatsoever to this Agreement, the Assignment or theServices (the“Dispute”), thePartiesagree toabideby the following three-stage process (the“Dispute-Resolution Mechanism”):First, the Clientand MacKenziePartners shallendeavor ingood faith to resolve the Dispute through direct discussions.Second, ifthe discussions referenced in the immediately preceding sentence do notyield a resolution ofthe Disputeafter sixty (60) days oranyextended periodagreed toby theParties, theParties shall submit the Dispute to a privateandconfidential mediation process to beconductedby a single mediatoragreed uponby theParties.Third, if the Dispute is not resolvedat theconclusion of the mediation process referenced in the immediately precedingsentence,either of theParties may, within sixty(60) daysafter theconclusion ofsaid mediation process,commence a privateandconfidentialarbitration proceeding, to beheld in New York County,New York, inaccordance with the American Arbitration Association Commercial Arbitration Rules then ineffect (the“ArbitrationProceeding”). The Dispute-Resolution Mechanism described herein is theexclusive mechanism for resolving a Dispute. The provisions of thisParagraph 8 shall survive indefinitely thecompletion or termination of theServices. | |
| 9. | This Agreement maybeexecuted incounterparts. Electronically-transmitted signatures shall be deemed tobe original signatures that bind theParties toall of the terms of thisAgreement. Theexecuted signaturepages,along with the remainder of this Agreement, shallconstitute a single bindingAgreement. ThisAgreement shall not bind the Client until it has beenexecutedby the Clientand shall not bind MacKenziePartners until it has beenexecutedby MacKenzie Partners. |
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| 10. | This Agreementcontains theentireagreementand understanding of thePartiesconcerning the Assignmentand theServicesand supersedesand renders nulland voidall prior drafts, negotiations, proposalsandagreements, whether oral or written, between theParties. This Agreement may notbe modified,amended orwaived, in whole or in part,except in a writingexecutedby the Clientand MacKenziePartners inaccordance with the procedures set forth inParagraph 9,above. |
Sincerely, | Agreedtoasofthedatefirstwrittenabove. | |||
| MacKenziePartners,Inc. | GigglesN’ Hugs | |||
| By: | By: | |||
| JeanneM.Carr | JoeyParsi | |||
| ManagingDirector | ChiefFinancialOfficer | |||