Exhibit 10.6
AMENDED AND
RESTATED
STOCK PURCHASE
AGREEMENT
among
TEAM Nation Holdings, Inc., a Nevada corporation
("Buyer")
and
David Kayton, an individual ("Seller")
and
First Southwestern Title Company of California, a
California corporation ("Company")
Dated: June 15,
2009
AMENDED AND RESTATED STOCK PURCHASE AGREEMENT
THIS AMENDED AND RESTATED STOCK PURCHASE
AGREEMENT (the "Agreement"), dated as of June 2, 2008 (the
"Effective Date"), is made by and among TEAM Nation Holdings, Inc.,
a Nevada corporation ("Buyer") and David Kayton, an individual
("Seller"), the owner of a total of two hundred thirty eight and
seventy-five one/hundredths (238.75) shares, which represents
approximately ninety-five and fifty one/hundredths percent (95.5%)
of the outstanding and issued shares of First Southwestern Title
Company of California, a California corporation (the "Company", of
which Buyer is acquiring two hundred twelve and fifty
one/hundredths (212.50) shares (the “Stock”), which
represents eighty-five percent (85%) of the total outstanding and
issued shares of the Company.
BACKGROUND
STATEMENT/RECITALS
The Seller holds and owns, or as of a date that
is at least thirty (30) days prior to the Closing Date, as herein
defined, will hold and own the Stock, free and clear of all liens,
encumbrances, charges, assessments and adverse claims of any kind
whatsoever other than Permitted Encumbrances. The Seller
desires to sell and transfer, and the Buyer desires to purchase and
acquire, the Stock for the consideration, and upon the terms and
subject to the conditions set forth in this Agreement and the
related documents to be executed and delivered in connection
herewith (the "Transaction").
This Agreement supersedes and replaces in its
entirety that certain Stock Purchase Agreement dated June 2, 2008
(the “Original Agreement”), by and between Buyer and
Seller, such that, after the date hereof, the Original Agreement
shall have no further force of effect.
TERMS OF
AGREEMENT
NOW, THEREFORE, in consideration of the mutual
covenants, promises and undertakings set forth in this Agreement,
the parties, intending to be legally bound, hereby agree as
follows:
ARTICLE I.
DEFINITIONS
Section 1.1 Definitions .
The following terms shall have the
indicated meanings unless the context requires
otherwise:
"Business
Day" means any day other
than a day, which is a Saturday, Sunday or banking holiday in the
State of California.
"Code" means the Internal Revenue Code of 1986, as
amended.
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"Common
Stock" means the common
stock, no par value per share, of the Company.
"Company" means First Southwestern Title Company of
California, a California corporation.
"Company
Stock" means all of the
issued and outstanding Common Stock and any other issued and
outstanding securities of the Company.
"Employee" means any Person employed by the Company in its
business and set forth on the Schedule to Section 3.1(n)
hereto.
"ERISA" means the Employee Retirement Income Security
Act of 1974, as amended.
"GAAP" means generally accepted United States
accounting principles, as in effect on the date hereof, applied on
a basis consistent with prior periods.
"Governmental Authority" means any foreign, United States federal, state
or local government, political subdivision or governmental or
regulatory authority, agency, board, bureau, commission,
instrumentality or court or quasi-governmental
authority.
"Interim
Financial Statements" means monthly balance sheets and income
statements for the Company prepared in accordance with GAAP,
without footnotes, consistently applied by the Company with respect
to prior periods, furnished by the Seller to the Buyer within ten
(10) Business Days after the close of each calendar month after the
date of this Agreement and prior to Closing.
"Knowledge" means the actual knowledge of David Kayton and
any other fact or circumstance that has come to the attention of
David Kayton.
"Permitted
Encumbrances" means
applicable laws, rules and regulations, including applicable
federal and state securities laws and those promulgated by the
California Department of Insurance.
"Person" means an individual, corporation, partnership,
Limited Liability Company, joint venture, trust, or unincorporated
organization, or any Governmental Authority.
“Side
Letter” means any
letter executed mutually by the parties amending or explaining a
term or condition herein provided or adding a term or condition to
the agreement as described in section 9.7 and shown in Exhibit
E attached hereto and incorporated by reference.
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"Tax or
Taxes" means any tax
imposed by a Governmental Authority, including net income,
alternative or add-on minimum tax, gross income, gross receipts,
sales, use, ad valorem, franchise, capital, paid up capital,
profits, license, withholding, payroll, employment, excise,
severance, stamp, occupation, premium, property, environmental or
windfall profit tax, custom, duty, transfer, documentary or other
tax, governmental fee or other like assessment or charge of any
kind whatsoever, any information reporting or back-up withholding
obligation, liability or penalty, together with any interest or any
penalty, addition to tax or additional amount imposed by any
Governmental Authority responsible for the imposition of any such
tax.
"Tax
Returns" means all
returns, reports, declarations, claims for refund, information
returns or statements required to be filed with respect to
Taxes.
"TEAM
Advances, Notes and Guarantees" means those advances to Company and Seller made
pursuant to section 2.10 and 2.11 of the Original Agreement for
operations and earnings advances at the discretion of Buyer, along
with the notes and guarantees described therein securing the
Buyer’s advances to Company and Seller, all as shown on
Exhibit B attached hereto and made a part hereof.
ARTICLE II.
PURCHASE OF
STOCK
Section 2.1 Agreement to Purchase and
Sell . Upon the
terms and subject to the conditions set forth in this Agreement and
upon the representations and warranties made herein by each of the
parties to the other, on the Closing Date (as defined in Section
2.5), the Seller shall sell, grant, convey, assign, transfer and
deliver to the Buyer, and the Buyer shall purchase and acquire from
the Seller, the Stock, free of all liens, encumbrances, charges,
assessments and adverse claims ("Encumbrances") of
any kind whatsoever other than the Permitted
Encumbrances. The Stock constitutes eighty-five percent
(85%) of the issued and outstanding shares of Common Stock of the
Company. Seller, as an individual, owns the balance of
the Common Stock of the Company.
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Section 2.2 Purchase Price
. Upon the
terms and subject to the conditions set forth in this Agreement, in
reliance upon the representations, warranties, covenants and
agreements of the Seller contained herein, and in exchange for the
Buyer, the Buyer agrees to deliver to the Seller the sum of One
Dollar ($1.00) plus the assumption of certain
debts and obligations, as provided for herein, and as set forth on
Exhibit A, attached hereto (the "Company Liabilities")
(collectively, the " Purchase Price ").
In that regard, Seller and Company agree and represent
and warrant as an additional condition to Buyer's obligations to
Close, that the Company Liabilities shall not exceed the gross
aggregate sum of One Million, Two Hundred Thousand Dollars
($1,200,000.00) and shall constitute primarily "trade payables"
and "vendor payables and claims" and shall not include any debts,
obligations, leases, mortgages, obligations or notes to any
existing or prior shareholders, officers or directors, including
but not limited to David Kayton, Mrs. Sandra B. Kayton, Mr. Mark
Dilbeck, Re/Max Realtors or any entity related or associated with
the Company, person or entity related thereto, except as
specifically agreed to by Buyer, in writing, prior to the Closing
Date. Further, Seller and Company agree and represent
and warrant as an additional condition to Buyer's obligations to
Close that, during the Due Diligence Period described in Section
2.9 below, the Buyer shall have the right to enter into mitigation,
negotiation, and settlement discussions directly with the owners of
the Company Liabilities in order to enter into manageable workout
arrangements, principal and debt reductions, and settlements(the
“ Negotiated Company Liabilities ”), which shall
be reflected by a Side Letter and described in Section 9.7 and
shown on Exhibit E and incorporated herein at
Closing. Seller and Company agree and represent and
warrant as an additional condition to Buyer's obligations to Close
that the Negotiated Company Liabilities shall not exceed the
gross aggregate sum of Five Hundred Thousand Dollars
($500,000.00) at the Closing. The Company
Liabilities and Negotiated Company Liabilities specifically exclude
the TEAM Advances, Note and Guarantees described in Section 2.3,
which shall remain obligations of Company post-Closing.
Section 2.3 TEAM Advances, Notes and
Guarantees .
Upon the terms and subject to the conditions set
forth in the Original Agreement, the Buyer made advances to the
Company and the Seller, secured by Notes and Guarantees by Company
and Seller, and the stock of Seller in Company, all as described in
section 2.10 and 2.11 of the Original Agreement and as described on
Exhibit B attached hereto and made a part hereof
(collectively, the TEAM Advances, Notes and
Guarantees”). As of the effective date hereof, the
total obligation to TEAM is Six Hundred Seventy Seven Thousand Six
Hundred and Seventy Five Dollars
($667,675.00). Concurrently with the execution of this
Agreement, the TEAM Advances, Notes and Guarantees shall be amended
to reflect the current obligations of the Company, as guaranteed by
the Seller, to the Buyer as of the date hereof (the “Amended
TEAM Advances, Notes and Guarantees”), and shall remain an
obligation of the Company and the Seller after the
Closing. The Amended TEAM Advances, Notes and Guarantees
shall be evidenced by a Promissory Notes, in the form attached
hereto as Exhibit B1 (the "Amended Promissory Notes"),
executed by the Company, in favor of Buyer, or its affiliate, shall
bear interest at the rate of six percent (6%) per annum, from the
date of the advance and be payable on demand by the holder or, if
no demand, one-year from the Effective Date of this
Agreement. The obligations of the Amended Promissory
Notes shall be guaranteed by Seller, individually, pursuant to the
Amended Guarantees, a copy of which are attached hereto as
Exhibit B2 and incorporated herein by this
reference. In addition, the obligations of the Amended
Promissory Notes shall be secured by Seller's Common Stock and
ownership interest in the Company and shall be secured by Seller's
remaining Stock Interest in the Company post-Closing.
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Section 2.4 Payment of Purchase Price
. On
the Closing Date the Buyer shall pay to Seller cash in the amount
of One Dollar ($1) and shall assume responsibility for the payment,
assumption, settlement or workout arrangement of the Negotiated
Company Liabilities.
Section 2.5
Closing . The Closing of the purchase and
sale of the Stock and the other transactions contemplated by this
Agreement (the "Closing") shall take place at the offices of TEAM
Nation Holdings, Inc., 790 E. Colorado Boulevard, 4
th Floor, Pasadena, CA 91101, at 10:OO a.m. on the
third Business Day after the expiration of the Due Diligence
Period, or at such other time or place as the Buyer and Seller may
agree. The time and date of the Closing is herein called the
"Closing Date ."
Section 2.6 Delivery of Company Stock
Certificates by the Seller . On the Closing Date, the Seller
shall deliver to the Buyer all certificates representing
eighty-five percent (85%) of the Seller's outstanding and issued
Stock, all free and clear of all Encumbrances of any kind
whatsoever other than Permitted Encumbrances, such certificates to
be accompanied by stock powers properly executed to Buyer in
blank.
Section 2.7 Delivery of Lease
Agreement . As of the date hereof there are no
leases to be delivered. Any leases entered into prior to
the Closing shall be submitted for review within five (5) days of
execution.
Section 2.8 Company Lease of
Equipment . [Intentionally Left
Blank. Any lease agreements to be dealt with where
transfer of ownership is an event of default?]
Section 2.9 Due Diligence
. From the
date of the execution of this Agreement until the later to occur of
(a) ninety (90) days from the Effective Date, and (b) sixty (60)
calendar days after receipt of approval of the Transaction from all
required regulatory agencies, including the California Department
of Insurance (the "Due Diligence Period"), Buyer shall have the
right to conduct its due diligence of the operations and status of
the Company, including all books and records in connection
therewith. During the Due Diligence Period, the Company
and Seller shall provide Buyer and its authorized representatives,
including its attorneys, accountants and other business advisors,
access to the premises, properties, agreements, books and records
and corporate governance documents, and shall cause the officers
and employees of Seller to furnish any and all data and information
pertaining to the business of the Company to Buyer.
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Section 2.10 Operations Prior to
Closing Date and Discretionary Operation Advance
. From and
after the effective Date, and continuing through the earlier of (a)
the Termination Date of the Agreement or (b) the Closing Date, and
subject to the Management Agreement dated October 24,
2007, by and among Seller, the Company and Buyer, on mutually
agreeable terms and conditions, Buyer, or an entity affiliated with
Buyer, may in the sole discretion of Buyer or its applicable
affiliate, advance an amount not to exceed Fifty Thousand
Dollars ($50,000.00) per month as and for approved operational
expenses incurred and to be incurred by the Company (the
"Discretionary Operational Advance"). The Discretionary
Operational Advance is optional at the sole option of Buyer, or its
affiliate, without any obligation on the part of Buyer, or its
affiliate whatsoever. All or any portion of the
Discretionary Operational Advance may be paid by Buyer, or its
affiliate directly to third party vendors or creditors, for the
benefit of the Company. The Discretionary Operational
Advance, if any, shall be evidenced by a Promissory Note, in the
form attached hereto as Exhibit B (the "Operational
Promissory Note"), executed by the Company, in favor of Buyer, or
its affiliate, shall bear interest at the rate of six percent (6%)
per annum, from the date of the advance and be payable on demand by
the holder or, if no demand, one-year from the Effective
Date. The obligations of the Operational Promissory Note
shall be guaranteed by Seller, individually, pursuant to the
Operational Guaranty, a copy of which is attached hereto as
Exhibit C and incorporated herein by this
reference. In addition, the obligations of the
Promissory Note shall be secured by In addition, the Discretionary
Operational Advance shall be secured by Seller's remaining Stock
Interest in the Company post-Closing.
ARTICLE III.
REPRESENTATIONS AND
WARRANTIES
Section 3.1 Representations and Warranties of
the Seller . The Seller hereby represents and warrants to the
Buyer as follows:
(a)
Ownership of all Company Stock . The
owners of all of the issued and outstanding shares of the Common
Stock in the Company, are as follows:
The Seller
has not pledged, encumbered, hypothecated or otherwise granted or
assigned any interest in, or otherwise restricted the transfer of,
any of his shares of the Company Stock. Upon transfer of
the Stock by the Seller, the Buyer will, as a result, receive good
and valid title to the Stock, free and clear of all Encumbrances of
any kind whatsoever other than Permitted Encumbrances.
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(b)
Capitalization and Company Stock . The
authorized capital stock of the Company consists entirely of two
hundred and fifty shares of common capital stock no par value. The
issued and outstanding shares of Common Stock have been validly
issued and are fully paid, non-assessable, and free of any
preemptive rights, whether statutory or otherwise. There
are no outstanding or authorized subscriptions, options, warrants,
calls, rights, commitments or any other agreements or arrangements
of any character obligating the Company to issue or acquire any
additional shares of capital stock or any other securities
convertible into or evidencing the right to subscribe for any
shares of capital stock or to convert any presently existing
obligations or securities into capital stock.
(c)
Due Organization, Good Standing and Power . The
Company is a corporation duly incorporated, validly existing and in
good standing under the laws of the State of
California. The Company has the requisite corporate
power and authority to carry on its business as such business is
now being conducted. The Company is not qualified to do
business as a foreign corporation in any jurisdiction, and the
properties owned, leased or operated by the Company or the business
conducted by it do not make such qualification necessary, except
where the failure to be so qualified would not be reasonably likely
to have a material adverse effect on the financial condition,
properties, results of operations or business of the Company (a
"Material Adverse Effect"). The Seller has delivered or
made available to the Buyer a complete and correct copy of the
Company's Articles of Incorporation and Bylaws as in effect on the
date of this Agreement. The Company does not have, and
never has had, any subsidiaries, and the Company does not own,
either directly or indirectly, any shares of capital stock of any
other Person.
(d)
Authority . The execution, delivery and
performance of this Agreement and all of the other agreements,
instruments or documents contemplated hereby to which the Company
or a Seller is a party (collectively, the "Transaction Documents"),
and the consummation of the transactions contemplated hereby and
thereby have been duly executed and delivered by all necessary
corporate action on the part of the Company and all other necessary
action on the part of the Seller. This Agreement and the
Transaction Documents have been duly authorized by the Company, and
this Agreement and each of the Transaction Documents to which the
Company and a Seller is a party will be, on or before the Closing
Date, duly executed and delivered, and each will be the legal and
valid obligation of the Company and the Seller, to the extent each
is a party hereto or thereto, enforceable in accordance with its
terms, except as may be limited by applicable bankruptcy,
insolvency or similar laws affecting creditors' rights generally,
and subject to general principles of equity (whether in law or in
equity) and public policy applicable to securities
law. Seller has delivered to the Buyer, true and
complete copies, certified by the Secretary of the Company, of the
resolution or resolutions, which have been adopted by the Company's
Board of Directors, authorizing the transactions contemplated
hereunder.
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(e)
No Approvals or Notices Required; No Conflict .
Except as described in Schedule to Section 3.1(e) to this
Agreement, the execution, delivery and performance of this
Agreement and the Transaction Documents by the Company and the
Seller, to the extent each is a party hereto or thereto, and the
consummation of the transactions contemplated hereby and
thereby:
(i) do
not and will not violate (with or without the giving of notice or
lapse of time or both) any judgment, ruling, order, writ,
injunction, or statute, rule or regulation applicable to the
Company or a Seller;
(ii) do
not and will not require any consent, approval, waiver, filing,
registration, qualification or notice under any provision of law
applicable to the Company or a Seller other than the prior written
approval of the Insurance Commissioner of the State of California;
and
(iii) do
not and will not (A) conflict with, result in the material breach
of any provision of, result in the termination of, or constitute a
default (or an event that, with notice or lapse of time or both,
would constitute a default) under; (B) result in the acceleration
of (or give any Person the right to accelerate) the performance of
any obligation of the Company or a Seller under; or (C) result in
the creation of any Encumbrance (except Permitted Encumbrances)
upon any properties, assets or business of the Company or a Seller
pursuant to, the Articles of Incorporation or Bylaws of the
Company, or any indenture, mortgage, deed of trust, lease, or
licensing agreement, or any other material contract, instrument or
other agreement to which the Company or a Seller is a party or by
which the assets or properties of any of them are bound or
encumbered, the result of which would reasonably be expected to
have a Material Adverse Effect.
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(f)
Tax Matters . Except as set forth in Schedule to
Section 3.1(f) , with respect to Tax
matters:
(i) The
Company has filed all Tax Returns required to be filed and, in
respect of any period ending prior to the Closing Date, shall have
paid all Taxes required to be paid prior to the Closing
Date. To the Knowledge of the Seller, the Company will
not have any liability for any such Taxes in excess of the amounts
so paid, and the Company is not delinquent in the payment of any
Tax, assessment or governmental charge, and the Company has not
requested any extension of time within which to file any Tax Return
in respect of any fiscal year that has not since been filed. No
deficiencies for any Tax, assessment or governmental charge have
been proposed, asserted or assessed (tentatively or definitely) by
any Governmental Authority against the Company that would not be
covered by existing reserves, and no requests for waivers of the
time to assess any such Tax are pending. The foregoing
shall exclude any unpaid taxes that has been disclosed to, and
accepted by, Buyer prior to the Closing Date, and set forth in the
Schedule of Liabilities, Exhibit D , attached
hereto.
(ii) True,
correct and complete copies of all Tax Returns and other filings of
the Company, which have been filed on or before the Closing Date
with respect to the Company's 2006, 2007 and 2008 fiscal years, and
all financial records necessary to prepare Tax Returns for the
Company subsequent to the Closing Date have been made available to
the Buyer on or before the Closing Date. There is no
proposed amendment of any Tax Return of the Company that has been
filed, is required to be filed or will be filed for taxable periods
ending on or before or including the Closing Date.
(iii) To
the Knowledge of the Seller, the Company's Tax Returns are not
currently being audited by the Internal Revenue Service or any
other Governmental Authority, state or federal, other than the
periodic review of the Tax Returns conducted by the California
Department of Insurance, if any.
(iv) The
Company has not waived any statute of limitations in respect of
Taxes or agreed to any extension of time with respect to a Tax
assessment or deficiency.
(v) No
power of attorney has been granted by the Company with respect to
any Tax matter that is currently in force.
(vi) The
Company has not made any payments nor is it obligated to make any
payments that under certain circumstances that could reasonably be
expected to obligate it to make any payments that will not be
deductible under internal Revenue Code Section 280G.
(vii) The
Company is not a party to any Tax sharing, Tax indemnity, or Tax
allocation agreements.
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(viii) The Company
has withheld or collected and will withhold or collect from the
payment made to each of its Employees the amount of all Taxes
(including, but not limited to, federal incomes taxes, Federal
Insurance Contribution Act taxes and state and local income and
wage taxes) required to be withheld or collected therefrom and has
paid and will pay the same to the proper Tax receiving
officers.
(g)
Legal Proceedings . Except as otherwise
disclosed on Schedule to Section 3.1(g), there is not
pending (nor has there been pending within the two (2) years prior
to the date hereof) any legal, administrative, governmental or
other claim, action, suit, or proceeding or governmental
investigation to which the Company or a Seller is a party or
against the Company or a Seller or the Company's properties. Except
as otherwise disclosed on Schedule to Section 3.1(g), to the
Knowledge of the Seller, there is no threatened legal,
administrative, governmental or other claim, action, suit, or
proceeding or governmental investigation to which the Company or
Seller is a party or against or relating to the Company or a Seller
or the Company's properties or rights, that, if adversely
determined, would reasonably be expected to have, either singly or
in the aggregate, a Material Adverse Effect. The Company
is not in violation of any term of any judgment, ruling, writ,
decree, injunction or order outstanding against it.
(h)
Insurance . The
Schedule to Section 3.1(h) sets forth a list of all
insurance policies maintained by the Company as of the date
hereof. The Company presently maintains and, since at
least two (2) years prior to the date hereof, has maintained, with
financially sound and reputable insurance companies, casualty and
liability insurance policies providing coverage of the types and in
amounts adequate against such risks as would be customary for the
Company engaged in a similar business in the localities in which
the Company operates, and covering all of the material assets,
properties and operations of the Company. Such insurance
policies are outstanding and in force and are listed in this
Agreement. Except as set forth in Schedule to Section
3.1(h) , there are no claims pending under any
such policy, nor has any such claim been denied in the past two (2)
years.
(i)
Labor Relations . There is no union or
collective bargaining organizational activity occurring among the
Employees of the Company.
(j)
Conduct of Business in Compliance with Legal and other
Regulatory Requirements . The Company has
complied with and owns its assets in accordance with, and its
business has been operated in compliance with, all federal, state
and local laws, rules, ordinances, regulations and orders
applicable to it, including without limitation, all Occupational
Safety and Health Act, Federal Labor Standards Act ("FLSA"), ERISA,
the Americans with Disabilities Act, CERCLA, the Real Estate
Settlement Procedures Act and all applicable laws and related rules
and regulations of all United States jurisdictions affecting labor
union activities, civil rights or employment, except where the
failure to comply with any of the foregoing may have, either singly
or in the aggregate, a Material Adverse Effect. The
Company has all material licenses, permits and qualifications
necessary to conduct its business as presently being
conducted. During the two (2) years prior to the Closing
Date, the Company has not had any material license or qualification
to conduct business in any jurisdiction revoked or suspended or
been involved in a proceeding to revoke or suspend such license or
qualification, nor has any investigation been conducted, or to the
Knowledge of the Seller, is pending with a view to revocation or
suspension of any such license.
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(k)
Absence of Certain Changes or Events . Except as set
forth on Schedule to Section 3.1(k) attached hereto, since
January 31, 2008, the Company has not:
(i) suffered
any Material Adverse Effect;
(ii) made
any individual capital expenditure or entered into any single
commitment greater than Twenty Five Thousand Dollars
($25,000.00) (except as disclosed in the Schedule to
Section 3.1(k)] or any transaction or commitment
material to the Company's business, taken as a whole, other than
(A) in the ordinary course of business consistent with past
practices or (B) those contemplated by this Agreement;
(iii) declared
any dividend or made any payment or other distribution in respect
of its capital stock to the Seller or any other Person, other than
those made in the ordinary course of business and as otherwise
permitted under the terms of this Agreement;
(iv)
purchased, issued, redeemed, sold, or otherwise acquired or
disposed of any shares of Company Stock, or granted any options,
warrants or other rights to purchase or convert any obligation into
any shares of the capital stock or into any securities of the
Company;
(v) incurred,
assumed or guaranteed or entered into any commitment in respect of
any indebtedness for borrowed money greater than Twenty Five
Thousand Dollars ($25,000.00) in the aggregate or materially
changed any of the terms of any indebtedness in an aggregate amount
greater than Twenty Five Thousand Dollars ($25,000.00) , or
assigned, mortgaged, pledged or otherwise subjected to any other
Encumbrance other than Permitted Encumbrances any property,
business or assets tangible or intangible, held in connection with
the Company's business;
(vi) introduced
any material change with respect to the manner of conducting its
business or with respect to its method of accounting;
(vii) made
any material increase in the compensation payable or to become
payable by it to its officers or Employees or adopted any increase
in any bonus, insurance, pension or other employee benefit plan,
payment or arrangement made to, for or with such officers or
Employees, except increases occurring in the ordinary course of
business;
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(viii) received any
notice of termination of any contract, lease or other agreement or
suffered any damages, destruction or loss (whether or not covered
by insurance) which, in any case or in the aggregate, may
reasonably be expected to have a Material Adverse
Effect;
(ix) transferred
or granted any rights or licenses under, or entered into any
settlement regarding the breach or infringement of, any
intellectual property, or modified any existing rights with respect
thereto;
(x) amended
its Articles of Incorporation or Bylaws;
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