Item 1.01 Entry into a Material Definitive Agreement.
On or about June 29, 2020, Hanover Hoffman Estates, LLC ("HHE"), filed case
number 2020L006092 in the Circuit Court of Cook County alleging the Company's
failure to pay Base Rent and abandonment of certain office space in Hoffman
Estates, Illinois subject to a Commercial Lease dated May 26, 2016. HHE sought
at least $672,878 in base rent and other amounts under the lease, as well as
treble damages from our ex-CEO and two past Directors who were serving on our
Board as of the date of the lease.
On October 6, 2021, HHE and the Company agreed to settle case number 2020l006092
pursuant to a settlement agreement providing, among other things, that the
Company agree to the entry of a final judgment order on the complaint in the
amount of $725,794.84, which includes $657,193.58 in base rent awarded HHE by
the Court on HHE's Motion for Summary Judgment and the additional fees claimed
by HHE and costs. HHE will forebear on the enforcement of the judgment and will
provide the Company a satisfaction of the judgment upon the payment by the
Company of $350,000.00, plus interest on the principal amount thereof
outstanding from time to time at the rate of 5% per annum (the "Settlement
Amount"), until the Settlement Amount is paid in full. An initial payment of
$125,000.00, will be due and payable on or before January 1, 2022. The balance
of $225,000.00 will be paid over a five-year period beginning on January 1,
2023, as follows: January 1, 2023 - $15,000.00 plus accrued interest only;
January 1, 2024 - $15,000.00 plus accrued interest only; January 1, 2025 -
$45,000 plus accrued interest; January 1, 2026 - $75,000.00 plus accrued
interest; and January 1, 2027 - $75,000.00 plus accrued interest.
The discussion contained herein is qualified in its entirety by the actual terms
and conditions of the settlement agreement and order as set forth in the
Exhibits attached hereto.
Item 9.01 Financial Statements and Exhibits.
(a) Financial Statements of business acquired. None.
(b) Pro forma financial information. None.
(c) Shell Company Transaction. Not applicable.
(d) Exhibits. Settlement Agreement and Order.
© Edgar Online, source Glimpses