Document:

ex_396737.htm

Exhibit 10.1

 

SEVERANCE AND RELEASE AGREEMENT

 

This Severance and Release Agreement (“Agreement”) is made by and among FIRST FED BANK (formerly known as First Federal Savings & Loan Association of Port Angeles) (“Employer”) and KELLY A. LISKE (“Employee”).

 

1.         Termination of Employment. Employer ended Employee’s employment effective June 30, 2022 (the “Separation Date”). Employee received her final paycheck for her salary through the Separation Date including payout of Employee’s accrued but unused vacation pay, if any. Employee will likewise receive her prorated portion of the incentive bonus for 2022 in accordance with the terms of the Executive Cash Incentive Plan and/or other applicable plan. Other than the additional sums outlined below, Employee acknowledges that Employer has paid to Employee all sums owing to her, including wages, accrued but unused vacation, reimbursable business expenses and benefits accrued or incurred through the Separation Date in accordance with and within the time frame required by applicable law.

 

2.           Severance Payment. In consideration of Employee’s execution of and compliance with this Agreement, Employer and Employee agree to the following:

 

(a)    Employer shall pay Employee severance equal to Two Hundred Seventy Eight Thousand Five Hundred Sixty Six Dollars and Seven Cents ($278,566.07) which amount is made up of the following: (i) Two Hundred Sixty Thousand Six Hundred Dollars ($260,600.00) representing her annual salary as of the Separation Date; (ii) Thirteen Thousand Thirty Dollars ($13,030.00) representing the pro rata amount of her cash incentive award under the Executive Cash Incentive Plan; and (iii) Four Thousand Nine Hundred Thirty Six Dollars and Seven Cents ($4,936.07) representing the pro rata amount of her production incentive under the Executive Cash Incentive Plan. This amount shall be subject to all applicable state and federal withholdings, and shall be paid within seven (7) business days from the Effective Date of this Agreement as outlined in Section 7 below.

 

(b)    Employer further agrees to provide Employee with a lump sum amount equal to 12 months of Employee’s COBRA premiums, for additional severance of Thirty-One Thousand Three Hundred Eight Seven Dollars ($31,387.00). This sum shall be paid in a lump sum with the severance described in Section 2(a) above.

 

The parties specifically agree that the consideration paid to Employee in accordance with this Agreement is good and sufficient consideration for this Agreement.

 

3.          Waiver of Noncompetition Clause. In consideration of the promises and covenants made by Employee in this Agreement, Employer agrees to waive the requirements of Section 8(a) (“Noncompetition”) of the Employment Agreement dated February 22, 2019 between Employer and Employee (the “Employment Agreement”). On July 13, 2022, the Board of Directors of Employer consented to this waiver as required in the Employment Agreement.

 

4.          Term of Noninterference Clause. To avoid any ambiguity created by the waiver described in Section 3 above, Employer and Employee agree that the term of Section 8(b) (“Noncompetition”) of the Employment Agreement shall be twelve (12) months from the Effective Date.

 

 

Severance and Release Agreement – Page 1 of 5

 

 

 

5.        Compromise and Settlement. Employee, in consideration of the promises and covenants made by Employer in this Agreement, hereby compromises, settles and releases Employer from any and all past, present, or future claims, demands, obligations, or causes of action, whether based on tort, contract, or other theories of recovery which Employee may have against Employer on account of or arising out of any matter, cause, or event, including, but not limited to, Employee’s cessation of employment with Employer, or any rights to indemnification or reimbursement from Employer, whether pursuant to Employer’s articles of incorporation, bylaws, contract, or otherwise. Such claims include those Employee may have or has, or which may later accrue to or be acquired by Employee, against Employer, First Northwest Bancorp, or their predecessors, successors in interest, assigns, parent and subsidiary organizations, affiliates, and partners, and Employer’s, First Northwest Bankcorp’s past, present, and future shareholders, managers, members, officers, directors, agents, and employees, and their heirs and assigns (collectively, the “Released Parties”). Such claims specifically include but are not limited to claims for wages, wrongful termination, constructive discharge, stock options or awards, fraud, mental or emotional distress, misrepresentation, attorney’s fees, or any claim for discrimination under federal or state law including, but not limited to, claims under the Civil Rights Acts of 1964 and 1991 as amended (“Title VII”), the Washington State Law Against Discrimination (“WLAD”), the Americans with Disabilities Act (“ADA”), the Rehabilitation Act of 1973, the Age Discrimination in Employment Act of 1967, as amended (the “ADEA”), the Fair Labor Standards Act (“FLSA”), the Washington Minimum Wage Act (“WMWA”), the Employee Retirement Income Security Act (“ERISA”), the National Labor Relations Act (“NLRA”), and its Washington equivalent, the Occupational Safety and Health Act, as amended (“OSHA”) and its Washington counterpart (“WISHA”), as amended, state and federal medical and other protected leave acts, Executive Order 11246, as amended, any and all federal civil rights statutes or ordinances, including Sections 1983 and 1981. 

 

This release includes a release of claims of discrimination or retaliation on the basis of workers’ compensation status under Washington law, but does not include workers’ compensation claims for injuries sustained during employment not yet known to Employee, rights to unemployment, or any other claims which by law cannot be waived in a private agreement between the parties. Employee acknowledges that she has no outstanding stock options; all stock options awarded to her by Employer during the term of her employment have either been exercised by Employee or are expired.

 

6.         Promise Not to Sue. Employee represents that she has not filed any claim that was released in this Agreement against any of the Released Parties with any court or government agency, and that in the future, Employee will not, unless allowed by applicable law, bring a lawsuit against any Released Parties based on a claim that was released in this Agreement. However, this section shall not limit Employee from filing a claim to enforce the terms of the Agreement, shall not apply to claims alleging discrimination if doing so would violate applicable law, and shall not apply to any other claim that cannot be waived by law. If any government agency brings any claim or conducts any investigation against Employer, nothing in this Agreement forbids Employee from cooperating in such proceedings, but by this Agreement, Employee waives and agrees to relinquish any damages or other individual relief that may be awarded as a result of any such proceedings.

 

 

Severance and Release Agreement – Page 2 of 5

 

 

 

7.         Review and Revocation Period; Effective Date. By signing below Employee acknowledges that she is knowingly and voluntarily waiving and releasing any rights that she may have under the ADEA. Employee further acknowledges that she has been advised by this writing, as required by the ADEA and the Older Workers Benefit Protection Act (“OWBPA”), that (a) this Agreement does not apply to any rights or claims that may arise after the execution date of this Agreement; (b) Employee has been advised to consult counsel before signing this Agreement; (c) Employee has seven (7) calendar days to consider this Agreement following her receipt of this agreement on July 11, 2022, so until 11:59 pm on July 18, 2022, or the offer of severance and other benefits contained herein is automatically revoked (although Employee may choose to voluntarily execute this Agreement at any time before that date and by doing so thereby waives such period of consideration); (d) Employee has seven (7) days following the execution of this Agreement to revoke the Agreement by written notice to Employer by email delivery to Derek Brown, Chief Human Resources and Marketing Officer to derek.brown@ourfirstfed.com; and (e) this Agreement will not be effective until the date upon which the revocation period has expired, which will be the eighth (8th) day after this Agreement is executed by Employee, provided that she does not revoke the Agreement by delivering notice of her intent to revoke acceptance by the same message specified in (d) above prior to the expiration of the revocation period (“Effective Date”). Nothing in this Agreement prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver under the ADEA, nor does it impose any condition precedent, penalties or costs for doing so, unless specifically authorized by federal law.

 

8.         No Admission of Liability. Employee acknowledges that neither this Agreement, nor payment of any consideration pursuant to this Agreement, shall be taken or construed to be an admission or concession of any kind with respect to alleged liability or alleged wrongdoing against Employee by Employer or any of the Released Parties. Employer specifically asserts that all actions taken regarding Employee were proper and lawful and affirmatively denies any wrongdoing of any kind.

 

9.       Confidentiality of Agreement. Employee agrees to keep the fact that this Agreement exists and the terms and amount of this Agreement completely confidential, except that Employee may discuss this Agreement with her attorney, spouse, accountant, or other professional person who may assist Employee in evaluating, reviewing, or negotiating this Agreement or the tax implications of this Agreement. Any such parties will be deemed to be the agent of Employee for purposes of this Agreement, and if they disclose the terms or amount of this Agreement to any third party, their disclosure will be deemed a breach by Employee. If Employee is required by law to disclose the terms of this Agreement, Employee must immediately, and in no event more than five (5) business days from receipt of a request or order for such disclosure, and prior to any such disclosure, notify Employer so that it may seek appropriate relief from a court or tribunal of competent jurisdiction, at that party’s own expense, to prevent such disclosure. Employer agrees to keep the terms of this Agreement confidential except as to those employees, officers, agents, or directors of Employer who have a need to know the terms of this Agreement. Disclosure of the terms or amount of this Agreement by Employee contrary to this provision will constitute a material breach of this Agreement.

 

10.       Continuing Obligations.  By signing below, Employee acknowledges and affirms her continuing commitment to abide by the Restrictive Covenants and Confidentiality obligations reflected in Sections 8 and 9 of her Employment Agreement, as amended by Sections 3 and 4 of this Agreement.

 

 

Severance and Release Agreement – Page 3 of 5

 

 

 

11.       Return of Property. Employee acknowledges all property belonging to Employer has been returned, including, but not limited to proprietary Employer documents, data, equipment including any laptops, tablets and cellular phones, and office keys and other access equipment. Employee affirms that, following any necessary return, she has deleted any and all copies or duplicates of any proprietary of otherwise confidential data belonging to Employer that was previously in her possession or control, including on her cell phone or other personal electronic devices. Employee acknowledges that she has no personal property that is in the possession of Employer.

 

12.       References. Employer agrees that if it receives any employment verification requests or reference check inquiries relating to Employee, it will provide the requesting party with Employee’s position held, dates of employment, and, if authorized in writing by Employee, salary.

 

13.     Non-Disparagement. Employee will not make to any other party any statement (whether oral, written, electronic, anonymous, on the Internet, or otherwise) that directly or indirectly impugns the quality or integrity of Employer’s business practices, products, or operations, or any other disparaging or derogatory remarks about Employer or any Released Party. Notwithstanding the foregoing, this section does not (a) prohibit Employee from testifying truthfully in any proceeding, if subject to court order or subpoena, or (b) otherwise limit the Employee’s rights under applicable state or federal law to cooperate with any government agency investigation, hearing or proceeding. 

 

14.       Breach of Agreement. If Employee materially breaches any provision of this Agreement, Employer’s obligations to pay severance under Section 2 of this Agreement shall immediately cease, and Employee acknowledges that Employer may take any and all action necessary to recover any severance already paid to Employee. The parties agree that any sums received by Employee pursuant to Section 2 prior to her breach of this Agreement shall constitute sufficient consideration to support the releases given by Employee in Sections 5, 6 and 7. If, however, a court of competent jurisdiction orders this Agreement to be completely unenforceable, Employee shall repay to Employer the total payments received under this Agreement within seven (7) calendar days from the date of entry of the order.

 

15.      Representation by Attorney. Employee acknowledges that Employee has carefully read this Agreement; that Employee understands its final and binding effect; that Employee has been given the opportunity to be represented by independent legal counsel in negotiating and executing this Agreement and that Employee has either chosen to be represented by legal counsel or has voluntarily declined such representation; and that Employee understands the provisions of this Agreement and knowingly and voluntarily agrees to be bound by them.

 

16.       No Reliance Upon Representations. Employee hereby represents and acknowledges that in executing this Agreement, Employee does not rely and has not relied upon any representation or statement made by any of the Released Parties or their representatives or attorneys regarding the subject matter, basis or effect of this Agreement.

 

17.      Attorney’s Fees. Each party shall bear its own attorney’s fees in the negotiation of this Agreement. Should any action be instituted to enforce any provision of this Agreement, the prevailing party shall be entitled to recover its costs and reasonable attorney’s fees.

 

 

Severance and Release Agreement – Page 4 of 5

 

 

 

18.       Entire Agreement. This Agreement, and the Employment Agreement, contain the entire agreement between the parties, and neither this Agreement nor the Employment Agreement shall be modified except in writing signed by the party to be bound.

 

19.       Severability. If a court of competent jurisdiction finds any provision of this Agreement invalid or unenforceable as applied to any circumstance, the remainder of this Agreement and the application of such provision shall be interpreted so as best to effect the intent of the parties. The parties further agree to replace any such void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent possible, the economic, business, or other purposes of the void or unenforceable provision.

 

20.        Governing Law. This Agreement shall be governed by the laws of the State of Washington.

 

21.       Counterparts and Electronic Signatures. This Agreement may be executed in counterparts and each shall be deemed an original, but all of which together shall constitute a single instrument. The parties agree further that the exchange of copies of this Agreement and of signature pages by facsimile or electronic mail in “portable document format” (“.pdf”) form, or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document, shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes. Signatures of the parties transmitted by electronic means as described herein shall be deemed to be their original signatures for all purposes.

 

PLEASE READ CAREFULLY. THIS AGREEMENT INCLUDES A RELEASE OF CERTAIN KNOWN OR UNKNOWN CLAIMS.

 

	
			EMPLOYEE:

			 

			 

			 

			 

			/s/ Kelly A. Liske                           

			Kelly A. Liske

			 

			 

			Date:          July 13, 2022

				
			EMPLOYER:

			 

			First Fed Bank

			 

			 

			/s/ Matthew P. Deines                                    

			By: Matthew Deines, President and CEO

			 

			 

			Date:          July 13, 2022

			

 

 

Severance and Release Agreement – Page 5 of 5deseo_ex101.htm

  EXHIBIT 10.1
  
 STOCK PURCHASE AGREEMENT
  
 This STOCK PURCHASE AGREEMENT, dated as of July 15, 2022, is made by and between Michael Rosen (the “Seller”), and Ricks Investments, LLC (the “Buyer”). Buyer and the Seller are sometimes hereinafter collectively referred to as the “Parties.”
  
 WHEREAS, Seller is the legal and beneficial owner of 38,500,000 shares (the “Shares”) of common stock, par value $0.001 per share (the “Common Stock”) of Deseo Swimwear Inc., a Nevada corporation (the “Company”); and
  
 WHEREAS, for good and valuable consideration, Seller desires to transfer and sell to Buyer all right, title and interest in all of the Shares and Buyer desires to purchase all such right, title and interest in all of the Shares;
  
 NOW THEREFORE, in consideration of the mutual promises herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:
  
 1. Sale of Shares.
  
 (a) Shares to be Acquired. At the Closing, and upon the terms and subject to the conditions of this Agreement, and upon the representations, warranties and covenants herein made, the Seller shall transfer and sell to Buyer, and Buyer agrees to purchase from the Seller, all of the Shares for the Purchase Price set forth in Section 1(b) below.
  
 (b) Purchase Price. Upon the terms and subject to the conditions set forth in this Agreement, upon the representations, warranties and covenants made herein, and in consideration of its acquisition of the Shares from the Seller, Buyer hereby agrees to deliver to the Seller at the Closing a promissory note payable to the Seller (the “Note”) in the form attached as Exhibit A hereto, in a principal amount equal to Two Hundred Five Thousand Five Hundred  Thirty Three Dollars ($205,533) (the “Purchase Price”).  At the Closing, Buyer shall also enter into that certain Pledge and Security Agreement (the “PSA”) in the form attached as Exhibit B hereto.
  
 (c) Payment of Company Debt.  On the date this Agreement is executed, Buyer has paid Jon Darmstadter (“JD”) seventy-five thousand Dollars ($75,000) on behalf of the Company, in partial payment (the “First Payment”) of the One Hundred Twenty-Seven Thousand Three Hundred and Four Dollars ($127,304) debt owed by the Company to JD.  At the Closing, Buyer shall pay JD the remaining fifty-two thousand three hundred four Dollars ($52,304) on behalf of the Company (the “Second Payment”).  The First Payment shall be non-refundable, even in the event the Closing does not occur.
  
  	 
	
	

	 

 
   
 2. Representations and Warranties of Seller. Seller hereby represents and warrants to Buyer, which representations and warranties shall survive the Closing, the following:
  
 (a) The Shares are wholly owned by Seller free and clear of all liens, agreements, security interests, claims, charges and encumbrances of any kind and nature and no third party holds any right or interest (beneficial or otherwise) in the Shares. The Shares are not subject to any restrictions, directly or indirectly, with respect to their transferability or any other restrictions, other than as set forth in Section 3 below.
  
 (b) This Agreement is the valid and binding obligation of Seller, enforceable against Seller in accordance with its terms. Seller has full power and authority to enter into and consummate this Agreement and sell the Shares, the consent of no other party or entity is necessary for the consummation of the transactions contemplated herein. The execution, delivery and performance by Seller of this Agreement will not result in any willful violation of and will not conflict with, or result in a breach of, any of the terms of, or constitute a default under, any provision of state or federal law to which Seller is subject, any mortgage, indenture, agreement, document, instrument, judgment, decree, order, rule or regulation, or other restriction to which Seller is a party or by which Seller may be bound, or result in the creation of any lien upon any of the properties or assets of Seller pursuant to any such term, or result in the suspension, revocation, impairment, forfeiture or non-renewal of any permit, license, authorization or approval applicable to Seller or any of Seller’s respective assets or properties.
  
 (c) Seller understands that the Shares may appreciate in value after the execution of this Agreement and Seller confirms it has received or has had full access to all the information it considers necessary or appropriate to make an informed investment decision with respect to the Shares, including the Company’s publicly available documents, which are available on the website of the Securities and Exchange Commission (“SEC”) at www.sec.gov and any information known only by the Buyer prior to the execution of this Agreement. In determining whether to offer the Shares, Seller has relied on his knowledge and understanding of the Company and its business based upon Seller’s due diligence investigation and the information furnished by Buyer pursuant to this paragraph. Seller understands that no person has been authorized to give any information or to make any representations which were not furnished pursuant to this paragraph and Seller has not relied on any other representations or information in making its investment decision, whether written or oral, relating to the Company, its operations and/or its prospects.
  
 (d) No governmental, administrative or other third-party consents or approvals are required, necessary or appropriate in order for Seller to convey, transfer and assign to and vest in Buyer good and marketable right, title and interest in and to the Shares, free and clear of all liens, security interests, claims, charges and encumbrances of any nature whatsoever.
  
 (e) There is no action, suit, investigation or proceeding pending, to the knowledge of the Seller, threatened against or affecting either of the Seller which: (i) seeks to restrain, enjoin, prevent the consummation of or otherwise affect the transactions contemplated by this Agreement or (ii) questions the validity or legality of any transactions or seeks to recover damages or to obtain other relief in connection with any transactions.
  
 (f) Based on the actual knowledge of the Seller, without any independent investigation or inquiry, there are no proceedings pending or threatened against the Company or the Seller, relating to the Shares.
  
  	 
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 (g) Seller understands that Seller (and not the Buyer) shall be responsible for any and all tax liabilities of Seller that may arise as a result of the transactions contemplated by this Agreement.
  
 3. Representations and Warranties of Buyer. The Buyer and its sole member Steven Ricks (“Buyer Affiliate” hereby represents and warrants to Seller, which representations and warranties shall survive the Closing, the following:
  
 (a) Buyer has all requisite power and authority to execute, deliver and perform under this Agreement and the other agreements, certificates and instruments to be executed by Buyer in connection with or pursuant to this Agreement. Upon execution and delivery by Buyer at the Closing, this Agreement is a legal, valid and binding agreement of Buyer, enforceable against Buyer in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance or similar laws affecting the enforcement of creditors’ rights generally and subject to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity).
  
 (b) At the time Buyer was offered the Shares, Buyer and the Buyer Affiliate was, and on the date of Closing, will be, an “accredited investor” as defined by Rule 501 under the Securities Act of 1933, as amended (the “Securities Act”).
  
 (c) Buyer hereby represents, warrants and covenants to Seller as of the date of this Agreement and as of the Closing that it is acquiring the Shares for its own account and not with a view to the distribution thereof, nor with any present intention of distributing the same, in violation of the Securities Act, and the rules and regulations promulgated thereunder, or any applicable state securities or “blue sky” laws, rules and regulations. Buyer understands the Shares are being offered and sold pursuant to an exemption from registration contained in the Securities Act based in part upon Buyer’s representations contained in this Agreement, including, without limitation, that Buyer is an “accredited investor” within the meaning of Regulation D under the Securities Act. Buyer confirms he has received or has had full access to all of the Company’s publicly available documents, which are available on the SEC’s website at www.sec.gov, and the information it considers necessary or appropriate to make an informed investment decision with respect to the Shares to be purchased by it under this Agreement. In determining whether to make this investment, Buyer has relied solely on Buyer’s own knowledge and understanding of the Company and its business based upon Buyer’s own due diligence investigation and the information furnished pursuant to this paragraph. Buyer understands that no person has been authorized to give any information or to make any representations which were not furnished pursuant to this paragraph and Buyer has not relied on any other representations or information in making its investment decision, whether written or oral, relating to the Company, its operations and/or its prospects.
  
 (d) Buyer and the Buyer Affiliate has substantial experience in evaluating and investing in transactions of securities in companies similar to the Company so that it is capable of evaluating the merits and risks of its investment in the Company and has the capacity to protect its own interests. Buyer must bear the economic risk of this investment until the Shares are sold pursuant to: (i) an effective registration statement under the Securities Act; or (ii) an exemption from registration is available with respect to such sale. Buyer is able to bear the economic risks of an investment in the Shares and to afford a complete loss of Buyer’s investment in the Shares.
  
  	 
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 (e) Buyer acknowledges that: (i) Buyer may be acquiring the Shares from an “affiliate” of the Company, as that term is defined in Rule 144 of the Securities Act, (ii) Buyer’s holding period for purposes of Rule 144 shall begin on the date the Shares were purchased from an “affiliate” of the Company and paid for by Buyer and (iii) the Shares must be held indefinitely unless subsequently registered under the Securities Act or unless an exemption from such registration is available. Buyer is aware of the provisions of Rule 144 promulgated under the Securities Act which permit limited resale of common stock purchased in a private transaction subject to the satisfaction of certain conditions, including, among other things, the existence of a public market for the Common Stock, the availability of certain current public information about the Company, the resale occurring not less than six months after a party has purchased and paid for the security to be sold, the sale being effected through a “broker’s transaction” or in transactions directly with a “market maker” and the number of shares of Common Stock being sold during any three-month period not exceeding specified limitations. Buyer is aware that the Shares will bear substantially the following legend:
   
 	  
	 “THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS AND NEITHER THE SECURITIES NOR ANY INTEREST THEREIN MAY BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR SUCH LAWS OR AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT AND SUCH LAWS WHICH, IN THE OPINION OF COUNSEL FOR THIS CORPORATION, IS AVAILABLE.”
	  

 
 
  
 (f) The execution, delivery and performance of this Agreement by Buyer will not conflict with or result in the breach of any term or provision of, or violate or constitute a default under, any charter provision or bylaw or under any material agreement, to which Buyer is a party or by which Buyer is in any way bound or obligated.
  
 (g) Buyer has carefully considered and has discussed with the Buyer’s professional legal, tax, accounting and financial advisors, to the extent the Buyer has deemed necessary, the suitability of this investment and the transactions contemplated by this Agreement for the Buyer’s particular federal, state, local and foreign tax and financial situation and has determined that this investment and the transactions contemplated by this Agreement are a suitable investment for the Buyer. Buyer relies solely on such advisors and not on any statements or representations of the Company, Seller or any of its agents. Buyer understands that Buyer (and not the Seller) shall be responsible for Buyer’s own tax liability that may arise as a result of this investment or the transactions contemplated by this Agreement.
  
 (h) No governmental, administrative or other third party consents or approvals are required, necessary or appropriate on the part of Buyer in connection with the transactions contemplated by this Agreement.
  
  	 
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 (i) Buyer agrees it will not disclose, and will not include in any public announcement, the name of Seller or the Company, unless expressly agreed to by Seller or unless and until such disclosure is required by law or applicable regulation, and then only to the extent of such requirement.
  
  4. Closing.
  
 (a) Time; Place; Outcome. The closing of the purchase and sale of the Shares (the “Closing”) will take place on or about August 31, 2022 or such other date agreed to by both Parties in writing. At the Closing, Seller shall transfer to Buyer clear and marketable title to the Shares, free and clear of any and all liens, claims, encumbrances and adverse interests of any kind (other than as provided in Section 3 above), by delivering to the Buyer the certificates for the Shares in negotiable form, duly endorsed in blank, or with stock transfer powers executed and attached thereto, and Buyer shall deliver the Note representing the Purchase Price to Seller and the Second Payment.
  
 (b) Conditions Precedent to Buyer’s Obligations. The obligations of the Buyer at the Closing shall be subject to the satisfaction on or prior to the Closing of the following conditions precedent, any one or more of which may be waived by the Buyer:
  
 (i) Representations and Warranties. The representations and warranties by Seller in Section 2 hereof shall be true and accurate on and as of the Closing.
  
 (ii) Performance. Seller shall have performed and complied with all agreements and conditions contained herein or in other ancillary documents incident to the transactions contemplated by this Agreement required to be performed or complied with by them prior to or at the Closing.
  
 (iii) Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be presented and delivered to the Buyer, shall be satisfactory in substance and form to the Buyer or his counsel, and the Buyer or his counsel shall have received all such counterpart originals (or certified or other copies) of such documents as they may reasonably request.
  
 (iv) Consents; Authorizations. Seller shall have obtained in a timely fashion any and all consents, permits, approvals, registrations and waivers necessary or appropriate for consummation of the transaction and sale of the Shares.
  
 (c) Conditions Precedent to Seller’s Obligations. The obligations of the Seller at Closing shall be subject to the satisfaction, on or prior to the Closing, of the following conditions precedent, any one or more of which may be waived by the Seller.
  
 (i) Representations and Warranties. The representations of and warranties by the Buyer in Section 3 hereof shall be true and accurate on and as of the Closing.
  
  	 
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 (ii) Performance. The Buyer shall have performed and complied with all agreements and conditions contained herein or in other ancillary documents incident to the transactions contemplated by this Agreement required to be performed or complied with by him prior to or at the Closing.
  
 (iii) Consents; Authorizations. The Buyer shall have secured all permits, consents and authorizations, if any, that shall be necessary or required lawfully to consummate this Agreement.
  
 (iv) Proceedings and Documents. All corporate and other proceedings in
 connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions (including the Note and the PSA) shall be satisfactory in substance and form to Seller or their counsel, and Seller or their counsel shall have received all such counterpart originals (or certified or other copies) of such documents as they may reasonably request.
  
 (d) At any time and from time to time after the Closing, the Parties shall duly execute, acknowledge and deliver all such further assignments, conveyances, instruments and documents, and shall take such other action consistent with the terms of this Agreement to carry out the transactions contemplated by this Agreement.
  
 5. Miscellaneous.
  
 (a) Entire Agreement. This Agreement contains the entire understanding of the Parties and supersedes all previous verbal and written agreements. There are no other agreements, representations, or warranties set forth herein.
  
 (b) Notices. All notices, requests, demands and other communications provided in connection with this Agreement shall be in writing and shall be deemed to have been duly given at the time when hand delivered, delivered by express courier, or sent by facsimile (with receipt confirmed by the sender’s transmitting device) in accordance with the contact information provided below or such other contact information as the parties may have duly provided by notice.
  
 If to the Seller:
  
 5600 Saint Annes Way
 Boca Raton, FL 33496
  
 If to the Buyer:
  
 252 Beaupre Drive
 Luling LA 70070
 Attn: Steven D. Ricks, Member
  
  	 
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 (c) Waiver. No delay or failure by either party to exercise any right under this Agreement, and no partial or single exercise of such right, shall constitute a waiver of that or any other right, unless otherwise expressly provided herein.
  
 (d) Survival of Agreements. All agreements, covenants, representations and warranties contained herein or made in writing in connection with the transactions contemplated hereby shall survive the execution and delivery of this Agreement.
  
 (e) Events of Termination. Anything herein or elsewhere to contrary notwithstanding, this Agreement may be terminated by written notice of termination at any time before the purchase of the Shares by mutual written consent of the Parties.
  
 (f) Governing Law. This Agreement shall be construed in accordance with
 and governed by the laws of the State of New York. Parties submits to the jurisdiction of any state or federal court sitting in New York, New York, in any action or proceeding arising out of or relating to this Agreement and agrees that all claims in respect of the action or proceeding may be heard and determined in any such court. Each Party also agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court. Parties waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required of any other Party with respect thereto. Each Party agrees that a final judgment in any action or proceeding so brought shall be conclusive and may be enforced by suit on the judgment or in any other manner provided by law or at equity. In the event of suit under this Agreement, the prevailing party will be entitled to costs, including reasonable attorneys’ fees; provided, however, in the event that damages are reduced from the original claim brought by the initiating party, the amount of costs provided shall so reflect such reduction by an equal pro rata amount.
  
 (g) Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit of Parties and their respective successors and assigns.
  
 (h) Execution and Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.
  
 (i) Headings. The descriptive headings of the Sections hereof are inserted for convenience only and do not constitute a part of this Agreement.
  
 (j) Confidentiality. Seller agrees to maintain the confidentiality of Material Non-Public Information (as defined below), except that any Material Non-Public Information may be disclosed (a) to its affiliates, directors, officers, employees and agents, including accountants, legal counsel and other advisors, and it being understood that the persons to whom such disclosure is made will be informed of the confidential nature of such Material Non-Public Information and instructed to keep such Material Non-Public Information confidential), (b) to the extent requested by any regulatory authority, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, or (d) to the extent such Material Non-Public Information (i) becomes publicly available other than as a result of a breach of this section. For the purposes of this section, “Material Non-Public Information” means all information received from the Buyer relating to this Agreement and the transaction contemplated herein, other than any such information that is available to the general public.
    
 [Signature Page Follows]
  
  	 
	7
	

	 

 
  
 IN WITNESS WHEREOF, the undersigned have duly executed this Agreement as of the date first written above.
   
  	  
	 SELLER:
	  

	  
	  
	  
	  

	  
	 /s/ Michael Rosen
	  

	  
	 Michael Rosen
	  

	  
	  
	  
	  

	  
	 BUYER:
  
 RICKS INVESTMENTS, LLC 
	  

	  
	  
	  
	  

	  
	 By:
	 /s/ Steven Ricks
	  

	  
	 Name:
	 Steven Ricks
	  

	  
	 Title:
	 Sole Member and Manager
	  

 
   
  	 
	8
	

	 

 
  
 EXHIBIT A – FORM OF PROMISSORY NOTE
  
  	 
	9
	

	 

 
  
 EXHIBIT B – FORM OF PLEDGE AND SECURITY AGREEMENT
  
  	 
	10

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