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CONTRIBUTION AGREEMENT
THIS
CONTRIBUTION AGREEMENT (the “Agreement”) is
entered into as of the 26th day of October, 2007, by and
between The 500 Group, LLC (the “Funding Party”),
a New York entity, and PubliCARD, Inc., a Pennsylvania
corporation (the “Debtor”).
W I T N E S S E T H
:
WHEREAS,
on May 17, 2007, the Debtor filed with the United States
Bankruptcy Court for the Southern District of New York (the
“Bankruptcy Court”) a voluntary petition for
relief under Chapter 11 of the United States Bankruptcy
Code.
WHEREAS,
on October 26, 2007, the Debtor filed a plan of reorganization
(the “Plan”)
1
with
the Bankruptcy Court.
WHEREAS,
pursuant to the Plan, the Funding Party would receive
370,000
shares of New Common Stock, which shares would represent, as
of the Effective Date, 90% of the outstanding shares of New
Common Stock .
WHEREAS,
in exchange for such New Common Stock and the releases and
related provisions set forth in the Plan, the Funding Party
wishes to contribute $500,000
to
the Debtor on the Effective Date to allow the Debtor to
satisfy its obligations under the Plan, among other
things;
NOW,
THEREFORE, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the Funding
Party and the Debtor hereby agree as follows:
1.
Contribution .
In exchange for the New Common Stock provided to the Funding Party
under the Plan and the releases and related provisions set forth
therein ,
the
Funding Party shall contribute $500,000
to
the Debtor on the Effective Date to allow the Debtor to
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