Document:

f8k071514ex10i_perk.htm

Exhibit 10.1

                                                                                        

	Confidential  	July 15, 2014

 

July 15, 2014

 

Tech 9 Inc.

Robert Oswald, CEO

205-5401 Eglinton Ave West

Toronto, ON M9C 5K6

 

Dear Mr. Oswald:

 

This Letter of Intent (the "L01") is made and entered into as of the 15th day of July 2014 between Perk International, Inc. a company formed under the laws of the State of Nevada (hereinafter referred to as "Perk"), and Tech 9 Inc. (hereinafter referred to as "Tech9 "), a Corporation formed under the laws of the Province of Ontario and the persons executing this Agreement listed on the signature page hereto (referred to collectively as the "PERK Shareholders" and "TECH9 shareholders).

 

The purpose of this letter is to set forth certain understandings between PERK and its principal shareholders, and TECH9 . Both parties hereto shall be bound by their individual rights and obligations with respect to the matters contained herein. The contemplated transactions are:

 

PERK desires to acquire all the Common Stock representing 100% ownership of TECH9 and TECH9 wishes to have all its common stock representing 100% ownership of TECH9 acquired by PERK, on terms and conditions to be set forth in a Share Exchange Agreement ("SEA") (the "Exchange" or "Exchange Offer"), so that TECH9 will become a wholly owned subsidiary of the Perk.

 

1.     Perk International, Inc. is a fully registered and current reporting company with the US Securities and Exchange Commission (the "SEC"). The Company's capitalization as of this day is as follows:

 

	a.	Authorized Common shares:	
250,000,000

	
75,000,000 issued

	
b.

	Common shares Restricted:	
45,000,000

	 
	
c.

	Common shares:	
30,086,668

	 
	
d.

	Warrants:	
29,913,332

	
(one warrant and $0.15 buys one share of common stock. The underlying share of common stock is registered via an S-1 Registration statement)

 

2.     The current business operation in PERK will be discontinued and the two current Officers and Directors will then resign as Officers and Directors and retire the 45,000,000 shares of restricted stock currently owned by them (22,500,000 shares each) . These shares will be retired to PERK Treasury.

 

3.     TECH9 insiders will then exchange 100% of their equity ownership in TECH9 for 70,000,000 shares of restricted PERK shares which will be issued by PERK Treasury. Robert Oswald and Matt O'Brien will then be installed as new Officers and Directors of Perk.

 

4.     Capitalization at time SEA is Executed and Dated:

 

	a.	
Authorized shares:

	
250,000,000

	

100,000,000 Issued

	
b.

	
OS owned by Tech9 shareholders:

	
70,000,000

	(Restricted)
	
c.

	
CIS legacy shareholders:

	
30,086,668

	
(Free)

	
d.

	Warrants:	
29,913,332

	
(The number of free trading shares may increase while the same amount of Warrants may decrease prior to the SEA being executed if additional warrants are exercised into common stock).

 

  

  

  

 

5.     Any and all accrued salaries due Robert Oswald and Matt O'Brien per their individual employment agreements with Tech9 will be cancelled as of this date. From t is date forward they can commence accruing salary. Based on emloyment  contracts in  place.

 

6.     Tech9 management shall enter into employment agreements at current levels of compensation and such compensation shall remain until such time as the company has net free cash flow.

 

7.      No material adverse change may occur in business (loss of a major order/client), operations, or financial condition of Tech9 which shall include:

 

	
  

	
i.

	
a material adverse change in the financial condition or creditworthiness of Tech9 or any guarantor,

 

	
  

	
ii.

	
a material adverse effect relating to Tech9 's ability to perform its obligations or responsibilities under any loan documents, and

 

	 	
iii.

	

a material adverse change concerning the validity or enforceability of any loan documents.

 

8.     Tech9 is not a party to any material litigation within the past two years or the subject of any threat of material litigation, Litigation shall be deemed "material" if the amount at issue exceeds the lesser of $10,000 per matter or $25,000 in the aggregate.

 

9.     Tech9 will undergo two years audit and interim financial statement prepared by SEC qualified auditor which must be completed within 60 days from the date the LOI is executed. Such audited financial statements shall be made part of the Supper 8K Perk is to file within 4 days after execution of the SEA. The cost for the audit and preparation of the Supper 8K will be covered by Tech9 . Tech9 's non-compliance will cause the LOI to be cancelled and or SEA to be unwound.

 

10.   Tech9 will cover the cost of all future financial filings (quarterly and annual reports) from the dated SEA onward.

 

11.   Tech9 guarantees it will continue to be a current filer with the SEC.

 

12.   Tech9 guarantees that it will provide (or its attorney) any and all opinion letters, brokerage firm deposit letters, waivers for medallion signature guarantee (providing shareholder provides proof of he/she is via passport or driver's license) or any document a brokerage firm requires for purposes of depositing shares into a brokerage firm. A violation of this covenant will be deemed to have transpired if Tech9 does not provide necessary documentation within 5 days of written notification. Each violation will result in a mandatory $10,000 payment to the shareholder per occurrence.

 

13.    New Management will be prohibited from doing the following for 18 months from the date the SEA is executed:

 

	
  

	
a.

	
Sell common stock or any instrument converting into common stock (Convertible Debt or Convertible Preferred, Warrants, etc.) below $0.15 per share.

	
  

	
b.

	
Reverse split the common stock.

	
  

	
c.

	
Issue any instruments that have voting rights superior than the company's common stock.

 

  

2

  

 

	
  

	
d.

	
No cashless exercise for warrants.

	
  

	
e.

	
No S-8 options exercisable below $0.15.

	
  

	
f.

	
Implement Section 9 (Redemption of Warrants) of Investor Warrants dated Jan 8, 2014 providing that at least 25% of the warrants have not been exercised (warrant agreement attached).

 

A violation of anyone of these covenants will trigger standard Anti-dilution provisions for all shareholders so that legacy shareholders are brought back to their ownership percentage level prior to such violation occurring.

 

14.   The Company currently has a S-1 registration statement outstanding which covers the underlying common stock of the warrants. This Registration Statement went effective September 30, 2013. Tech9 Management guarantees to keep the current registration statement effective by filing a post effective registration statement until the expiration (September 30, 2017) of the warrants providing that a minimum of 25% of the warrants have not been exercised. Tech9 will cover all associated costs of such registration. A new Post Effective Registration statement needs to be filed in September 2014. Only shares underlying the current warrants outstanding may be registered in the registration statement.

 

This Letter of Intent shall be governed by and construed in accordance with the laws of the State of Nevada, without giving effect to the principles of conflicts of law thereof.

 

If the foregoing correctly states the general understanding that has been reached between us, please so indicate by signing in the space provided and returning this letters to us.

 

	/s/ Andrew Gaudet
	
Andrew Gaudet,President 

	
Perk International Inc.

	 
	/s/ Robert Oswald
	 Robert Oswald, President
	
Tech 9 Inc.

	 
	/s/ Matt O'Brien
	Matt O'Brien
	
Corporate Secretary

 

 

3ex4-1.htm

 

EXHIBIT 4.1

 

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”). THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION, (B) IF THE SECURITIES HAVE BEEN REGISTERED IN COMPLIANCE WITH THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS (C) IN COMPLIANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT IN ACCORDANCE WITH RULE 144 THEREUNDER, IF APPLICABLE, AND IN ACCORDANCE W I T H APPLICABLE STATE SECURITIES LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE LAWS AND REGULATIONS GOVERNING THE OFFER AND SALE OF SECURITIES, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING, OR OTHER EVIDENCE OF EXEMPTION, REASONABLY SATISFACTORY TO THE CORPORATION. HEDGING TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED HEREBY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH U.S. SECURITIES LAWS.

7.0% SERIES A CONVERTIBLE NOTE

No: 2014 Series A CN - 001

US$ 150,000 April 30, 2014

For value received, OBJ Enterprises, Inc., a Florida corporation (the “Company”), promises to pay to Great Outdoors LLC (the “Holder”), the principal sum of $150,000. Interest shall accrue from the date of this Convertible Note (this “Note”) on the unpaid principal amount at a rate equal to seven percent (7%) per annum, compounded annually. This Note is subject to the following terms and conditions.

	
1.  

	
Maturity. Unless converted as provided in Section 2, this Note will automatically mature and be due and payable on May 1, 2015 (the “Maturity Date”). Subject to Section 2 below, interest shall accrue on this Note but shall not be due and payable until the Maturity Date. Notwithstanding the foregoing, the entire unpaid principal sum of this Note, together with accrued and unpaid interest thereon, shall become immediately due and payable upon the insolvency of the Company, the commission of any act of bankruptcy by the Company, the execution by the Company of a general assignment for the benefit of creditors, the filing by or against the Company of a petition in bankruptcy or any petition for relief under the federal bankruptcy act or the continuation of such petition without dismissal for a period of ninety (90) days or more, or the appointment of a receiver or trustee to take possession of the property or assets of the Company. The foregoing notwithstanding, prepayment in cash of the principal balance of this Note, together with all accrued and unpaid interest on the portion of principal so prepaid, may be made by the Company in whole or in part at any time without penalty, upon a five (5) business day notice (a “Pre-Payment Notice”). The Holder may convert the Note into common stock, in accordance with Section 2(c), during the five business day Pre-Payment Notice period; provided that notice of conversion is delivered to the Company prior to 2:00 p.m. (New York Time) on the fifth business day of the Pre-Payment Notice period.

	
2.  

	
Conversion; Payment; Etc.

	
a.  

	
This Note shall be convertible at any time, in whole or in part, at the option of the Holder, into such number of fully paid and nonassessable shares of Common Stock of the Company (“Common Stock”) by dividing (i) the entire principal amount of, and at the Holder’s option accrued interest on, this Note on the date of such optional conversion, by (ii) a conversion price of US$0.05 per share.

 

  

  

  

 

	
b.  

	
The conversion price shall be subject to adjustment from time to time as hereinafter provided in this Section 2(b):

	
i.  

	
If the Company at any time divides the outstanding shares of its Common Stock into a greater number of shares (whether pursuant to a stock split, stock dividend or otherwise), and conversely, if the outstanding shares of its Common Stock are combined into a smaller number of shares, the conversion price in effect immediately prior to such division or combination shall be proportionately adjusted to reflect the reduction or increase in the value of each such common share.

	
ii.  

	
If any capital reorganization or reclassification of the capital stock of the Company, or consolidation or merger of the Company with another corporation, or the sale of all or substantially all of its assets to another corporation shall be effected in such a way that holders of the Company’s Common Stock shall be entitled to receive stock, securities or assets with respect to or in exchange for such Common Stock, then, as a condition of such reorganization, reclassification, consolidation, merger or sale, Holder shall have the right to purchase and receive upon the basis and upon the terms and conditions specified in this Note and in lieu of the shares of the Common Stock of the Company immediately theretofore purchasable and receivable upon the exercise of the rights represented hereby, such shares of stock, other securities or assets as would have been issued or delivered to Holder if Holder had exercised this Note and had received such shares of Common Stock immediately prior to such reorganization, reclassification, consolidation, merger or sale. The Company shall not effect any such consolidation, merger or sale unless prior to the consummation thereof the successor corporation (if other than the Company) resulting from such consolidation or merger or the corporation purchasing such assets shall assume by written instrument executed and mailed to the Holder at the last address of the Holder appearing on the books of the Company the obligation to deliver to the Holder such shares of stock, securities or assets as, in accordance with the foregoing provisions, the Holder may be entitled to purchase.

	
c.  

	
No fractional shares of the Company’s capital stock will be issued upon conversion of this Note. In lieu of any fractional share to which the Holder would otherwise be entitled, the Company will pay to the Holder in cash the amount of the unconverted principal and interest balance of this Note that would otherwise be converted into such fractional share. Upon conversion of this Note pursuant to this Section 2, the Holder shall surrender this Note, duly endorsed, at the principal offices of the Company or any transfer agent of the Company. At its expense, the Company will, as soon as practicable thereafter, issue and deliver to such Holder, at such principal office, a certificate or certificates for the number of shares to which such Holder is entitled upon such conversion, together with any other securities and property to which the Holder is entitled upon such conversion under the terms of this Note, including a check payable to the Holder for any cash amounts payable as described herein. Upon conversion of this Note and the deliveries required pursuant to this Section 2 in connection with such conversion, the Company will be forever released from all of its obligations and liabilities under this Note with regard to that portion of the principal amount and accrued interest being converted including without limitation the obligation to pay such portion of the principal amount and accrued interest.

	
d.  

	
The foregoing notwithstanding, prepayment in cash of the principal balance of this Note, together with all accrued and unpaid interest on the portion of principal so prepaid, may be made by the Company in whole or in part at any time without premium or penalty.

Notwithstanding any other provision hereof, no Holder shall convert this Note or any portion thereof, if as a result of such conversion the holder would then become a “beneficial owner” (as determined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) of 4.99% or more of the issued and outstanding Common Stock. For greater certainty, the Note shall not be convertible by the Holder to the extend that, if, after giving effect to such conversion, the holder of such securities, together with its affiliates, would in aggregate beneficially own, or exercise control or direction over that number of voting securities of the Company which is 4.99% or greater of the total issued and outstanding voting securities of the Company, immediately after giving effect to such conversion.

 

  

  

  

 

	
e.  

	
Payment of Interest. Upon conversion of the entire principal amount of this Note into the Company’s capital stock, any interest accrued on this Note that is not by reason of Section 2 hereof simultaneously converted into Common Stock shall be immediately paid to the Holder.

	
f.  

	
Payment. All payments shall be made in lawful money of the United States of America at such place as the Holder hereof may from time to time designate in writing to the Company. Payment shall be credited first to the accrued interest then due and payable and the remainder applied to principal. This Note may not be prepaid at any time without the prior written consent of the Holder.

 

	
3.  

	
Due on Sale Clause. The Holder shall have the right, at its sole option, to declare this Note immediately due and payable irrespective of the Maturity Date specified herein ten business days prior to the effective date of any Change of Control Transaction undertaken without the prior written consent of the Holder, which consent the Holder shall have no obligation to give. A “Change of Control Transaction” means (a) any sale of equity securities or securities convertible into equity securities of the Company in an amount greater than $50,000; (b) the removal or demotion of Paul C. Watson from his current positions of President and Chief Executive Officer of the Company or the removal or demotion of any director or corporate officer appointed by Paul C. Watson without the express written approval of such removal or demotion by Paul C. Watson, (c) any merger, consolidation, statutory share exchange or acquisition transaction involving the Company or any material subsidiary of the Company; (d) any sale of substantially all of the assets of the Company or any material subsidiary of the Company; or (e) any similar transaction involving the issuance, cancellation or restructuring of equity securities of the Company unless, following the completion of such transaction, the then existing shareholders of Company own or control, directly or indirectly, at least 50% of the voting power or liquidation rights of Company or the successor of such merger, consolidation or statutory share exchange. In the event of a contemplated Change of Control Transaction, the Company shall provide the Holder at least Fifteen business days prior to the effective date of any Change of Control Transaction, except as may otherwise be prohibited by law.

	
4.  

	
Transfer; Successors and Assigns.

	
a.  

	
The terms and conditions of this Note shall inure to the benefit of and be binding upon the respective successors and assigns of the parties. This Note may be transferred, or divided into two or more Notes of smaller denomination, subject to the following conditions. The Holder, by acceptance hereof, agrees to give written notice to the Company before transferring this Note of such Holder’s intention to do so, describing briefly the manner of the proposed transfer. Promptly upon receiving such written notice, the Company shall present copies thereof to the Company’s counsel. If in the opinion of the Company’s counsel the proposed transfer may be effected without constituting a violation of the applicable U.S. state or federal securities laws, then the Company, as promptly as practicable, shall notify the Holder of such opinion, whereupon the Holder shall be entitled to transfer this Note, provided that an appropriate legend may be endorsed on this Note respecting restrictions upon transfer thereof necessary or advisable in the opinion of counsel satisfactory to the Company to prevent further transfers which would be in violation of such securities laws or adversely affect the exemptions relied upon by the Company. To such effect, the Company may request that the intended transferee execute an investment letter satisfactory to the Company and its counsel.

 

  

  

  

 

	
b.  

	
A register of the issuance and transfer of this Note shall be kept at the office of the Company, and this Note may be transferred only on the books of the Company maintained at its office. Each transfer shall be in writing signed by the then registered Holder hereof or the Holder’s legal representatives or successors, and no transfer hereof shall be binding upon the Company unless in writing and duly registered on the register maintained at the Company’s office. Upon transfer of this Note, the transferee, by accepting the Note, agrees to be bound by the provisions, terms, conditions and limitations of this Note.

	
c.  

	
If in the opinion of the counsel referred to in this Section 4, the proposed transferor disposition of the Note described in the Holder’s written notice given pursuant to this Section 4 may not be effected without registration or without adversely affecting the exemptions relied upon by the Company, the Company shall promptly give written notice to the Holder and the Holder will limit its activities and restrict its transfer accordingly.

	
5.  

	
Governing Law. This Note and all acts and transactions pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed and interpreted in accordance with the laws of the State of Texas, without giving effect to principles of conflicts of law.

	
6.  

	
Notices. Any notice required or permitted by this Note shall be in writing and shall be deemed sufficient upon delivery, when (a) delivered personally or by a nationally-recognized delivery service (such as Federal Express or UPS), (b) seventy-two (72) hours after being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, addressed to the party to be notified at such party’s address as set forth herein or as subsequently modified by written notice or (c) sent by facsimile with a return confirmation received, addressed to the party to be notified at such party’s facsimile number as set forth herein or as subsequently modified by written notice.

	
7.  

	
Amendments and Waivers. Any term of this Note may be amended only with the written consent of the Company and the Holder. Any amendment or waiver effected in accordance with this Section 7 shall be binding upon the Company, the Holder and each transferee of the Note.

Company hereby waives presentment for payment, notice of dishonor, protest and notice of protest. If this Note is not paid when due, the Company agrees to pay all costs of collection, including reasonable attorneys’ fees.

THIS NOTE SHALL BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS.

OBJ ENTERPRISES, INC.

By: Paul C Watson

Its: President and CEO

Address: 1707 Post Oak Blvd, Suite 215, Houston TX 77056

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